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22 May 2019
IAV GmbH Sentenced to Pay $35 Million Criminal Fine for its Role in Volkswagen AG Emissions FraudRead the Press Release
IAV GmbH (IAV), a German company that engineers and designs automotive systems, was sentenced in federal court in Detroit today to pay a $35 million criminal penalty.
The penalty is the result of the company’s guilty plea for its role in a long-running scheme for Volkswagen AG (VW) to sell approximately 335,000 diesel vehicles in the U.S. by using a defeat device to cheat on U.S. emissions tests mandated by the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). During the sentencing hearing, U.S. District Judge Sean F. Cox of the Eastern District of Michigan accepted the parties’ plea agreement, which includes the appointment of an independent corporate compliance monitor for a period of two years.
Principal Deputy Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, Assistant Administrator Susan Bodine of the EPA’s Office of Enforcement and Compliance Assurance and Special Agent in Charge Timothy R. Slater of the FBI’s Field Office made the announcement.
IAV pleaded guilty in December 2018 to participating in a conspiracy to defraud the United States and VW’s U.S. customers and to violate the Clean Air Act by misleading the EPA and U.S. customers about whether certain VW- and Audi-branded diesel vehicles complied with U.S. emissions standards. IAV admitted that it and its co-conspirators knew the vehicles did not meet U.S. emissions standards and worked collaboratively to design, test and implement cheating software to cheat the U.S. testing process. IAV further admitted that it was aware the VW concealed material facts about its cheating from federal and state regulators and U.S. customers. Pursuant to the U.S. Sentencing Guidelines, IAV’s $35 million fine was set according to the company’s inability to pay a higher fine amount without jeopardizing its continued viability.
The case was investigated by the FBI and EPA-Criminal Investigation Division. The prosecution is being handled by Trial Attorneys Philip Trout, Mark Cipolletti and Gary Winters of the Criminal Division’s Fraud Section; Senior Trial Attorney Jennifer Blackwell of the Environment and Natural Resources Division’s Environmental Crimes Section; and White Collar Crime Unit Chief John K. Neal of the U.S. Attorney’s Office for the Eastern District of Michigan. The Criminal Division’s Office of International Affairs also assisted in the case. The Justice Department also extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.
Holdenville Man Pleads Guilty to Kidnapping, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nicholas Earl Faulkner, a.k.a. "Ponyboy," age 32, of Holdenville, Oklahoma, entered a guilty plea to Kidnapping, in violation of Title 18, United States Code Sections 1201(a)(1), 2, 1151 and 1153, punishable by not more than 20 years imprisonment, a fine up to $250,000.00, or both; and to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that on or about April 16, 2017, in the Eastern District of Oklahoma, within Indian Country, on an Indian allotment, the Indian title to which had not been extinguished, the defendant, an Indian, did unlawfully and willfully seize, confine, inveigle, decoy, kidnap, abduct, carry away, and hold for some benefit, Nicole Marlene Owl, and, in furtherance of the commission of the offense, used any means, facility, or instrumentality of interstate or foreign commerce.
The Indictment further alleges that on or about April 17, 2017, within the Eastern District of Oklahoma, and within the jurisdiction of this Court, 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 and ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Oklahoma State Bureau of Narcotics and Dangerous Drugs, the Oklahoma State Bureau of Investigation, the Federal Bureau of Investigation, and the Seminole Nation Lighthorse police.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Edward Snow with the United States Attorney’s Office for the Eastern District of Oklahoma and Assistant United States Attorney Mona Sahaf with the Special Prosecutions Section, for the United States Department of Justice Criminal Division represented the United States.
Grant County woman admits to mail fraudRead the Press Release
ELKINS, WEST VIRGINIA – Sandra Mae Evans, of Petersburg, West Virginia, has admitted to mail fraud, United States Attorney Bill Powell announced.
Evans, age 62, pled guilty today one count of “Mail Fraud.” Evans admitted to opening an IRA account at Pendleton Community Bank’s Petersburg, West Virginia, branch in July 2018. A check in the amount of $82,170.50 was mailed from St. Louis, Missouri to Pendleton Community Bank to be deposited into Evan’s IRA account. Evans then deposited the check in August 2018, knowing the check was fraudulent. Evans admits to then requesting and successfully collecting withdrawals from the fraudulent check totaling more than $42,000. Evans then sent $18,000 cash to someone in Florida and $11,000 cash to someone in Utah.Evans has agreed to pay $35,808.05 in restitution to the Pendleton Community Bank. The amount represents the unrecovered amount of withdrawals made against the fraudulent check.
Evans faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The U.S. Postal Inspection Service and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Gary Man Sentenced to 70 Months in PrisonRead the Press Release
HAMMOND- Terry Brown, 33, of Gary, Indiana, was sentenced by U.S. District Court Judge Joseph S. Van Bokkelen on his plea of guilty to distribution of cocaine and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
Brown was sentenced to 70 months in prison followed by 3 years of supervised release.
According to documents in the case, beginning in December 2017 and continuing through February 2018, Mr. Brown sold cocaine and marijuana to a confidential informant. On one of the occasions, he sold, in addition to cocaine and marijuana, a 30 round drum magazine, a stolen .45 caliber firearm and ammunition to a confidential informant.
This case was investigated by the ATF/HIDTA Task Force and FBI/GRIT Task Force with the assistance of the Indiana State Police, the Lake County Sheriff’s Department, and the Gary Police Department. The case was handled by Assistant U.S. Attorneys Thomas R. Mahoney and Joseph A. Cooley.
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Fugitive Headed to Prison After Failing to Appear for SentencingRead the Press Release
BROWNSVILLE, Texas - A 46-year old Brownsville resident has been ordered to federal prison for 18 years following his conviction of conspiracy to possess with intent to distribute more than 100 kilograms of marijuana plus failing to appear in court for sentencing, announced U.S. Attorney Ryan K. Patrick.
Rene Izaguirre pleaded guilty to the drug charge Jan. 19, 2013, and was permitted to remain on bond. He was scheduled to appear in court Aug. 28, 2013, for sentencing. However, shortly before that date, Izaguirre’s ankle monitor was found cut off and left behind at his home. The investigation revealed he had fled to Mexico. He was later arrested and pleaded guilty to the failure to appear Dec. 6, 2018.
Today, U. S. District Judge Rolando Olvera imposed a 108-month sentence for the drug charge. Izaguirre also received another 108 months for failing to appear which was ordered to be served consecutively. The total 18-year-term of imprisonment will be immediately followed by four years of supervised release. In imposing the sentence, the court noted that not only did the defendant flee in order to avoid sentencing on his drug charge but that he also was found selling narcotics once again while on the run.
From 2007 to 2013, Izaguirre was part of a drug trafficking organization working with a local freight company to hide marijuana in crates of heavy machinery for transport north of the Rio Grande Valley. At the time of his plea, he admitted that with the help of his freight company contact, he was able to ship more than 700 kilograms of marijuana to Houston, Dallas and Pennsylvania where he had buyers.
After fleeing and failing to appear for sentencing, law enforcement found him in October 2018 in Odessa. At that time, authorities believed he was selling cocaine out of a trailer where he resided while working as a roofer. He was soon arrested and found in possession of nine ounces of cocaine.
Izaguirre remains in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Karen Betancourt prosecuted the case.
Four Michigan Defendants Plead Guilty to Conspiracy to Defraud the IRS and Steal from an Organization Receiving Federal FundsRead the Press Release
Four individuals in Flint, Michigan, pleaded guilty today to conspiring to impede the lawful functions of the Internal Revenue Service (IRS) and steal from an organization receiving federal funds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
Jayson Rosett, Robert Rosett, Carol Almeranti, and Karen Miller each pleaded guilty to one count of conspiring to defraud the United States by impeding the lawful functions of the IRS and one count of conspiring to commit theft from an organization receiving federal funds.
According to court documents, from July 2012 through April 2018, Jayson Rosett, a resident of Bloomfield Hills, Robert Rosett, a resident of Boca Raton, Florida, Carol Almeranti, a resident of Farmington Hills, and Karen Miller, a resident of St. Clair Shores, engaged in a scheme in which Almeranti and Miller stole traffic crash reports from the Detroit Police Department (DPD) and delivered them to the Rosetts for regular cash payments. Many of the stolen DPD crash reports were marked “unapproved” and were not publicly available. Jayson Rosett and others used the stolen reports to solicit crash victims for clients of a business Rosett operated, including personal injury lawyers, chiropractors, and healthcare professionals.
United States District Court Judge Matthew F. Leitman scheduled sentencing for Jayson Rosett on Oct. 1, for Carol Almeranti and Karen Miller on Oct. 3, and for Robert Rosett on Oct. 8. All four defendants face a maximum of five years in prison and a $250,000 fine for each individual count of conspiring to defraud the United States and conspiring to commit theft from an organization receiving federal funds. Each defendant also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Tax Division Trial Attorneys Mark McDonald and William Guappone, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Four Men Indicted on Fraud Charges Related to the Jay Peak EB-5 AnC Vermont Project in Northeast VermontRead the Press Release
Four individuals were charged with conspiring in a multi-year wire fraud scheme to defraud immigrant investors seeking green cards through the EB-5 program, among other charges, announced United States Attorney for the District of Vermont Christina E. Nolan.
Ariel Quiros, 63, William Kelly, 70, both of Florida; Jong Weon Choi, aka Alex Choi, 58, of South Korea; and William Stenger, 70, of Newport, Vermont, were indicted by the federal grand jury on criminal charges in connection with their management of the Jay Peak Biomedical Research Park EB-5 investment project, also called the AnC Vermont project. In addition to the wire fraud conspiracy count, the defendants face other charges, including six separate counts of wire fraud and various counts of concealing material facts or presenting false statements in a matter within the jurisdiction of a federal agency, namely United States Citizenship and Immigration Services (USCIS), which oversaw the EB-5 process. Quiros is also charged with two counts of money laundering. The indictment alleges that the defendants misrepresented facts to the SEC, which investigated the Jay Peak EB-5 offerings while the defendants were seeking new AnC investors. A civil action by the SEC ended the defendants’ control of the EB-5 projects.
U.S. Attorney Christina E. Nolan stated: “As alleged in this indictment, this scheme defrauded hopeful immigrant investors in what may be the largest financial crime in our state history. I commend our prosecutors and our partners in the FBI, IRS, and FDA-OIG for their dogged investigation of this complex fraud that shook our small state. This indictment demonstrates that the U.S. Attorney’s Office is determined to address the most challenging cases, and that we have the talent, will, and resources in our office and law enforcement agencies to meet those challenges.”
The charges against the defendants are only allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The defendants face a maximum penalty on the most serious charges of 20 years in prison, three years of supervised release, a $250,000 fine or twice the gross gain or loss, and restitution to the victims. The indictment also alleges forfeiture against the defendants.
“This case is about greed and deceit. The fraud alleged in this indictment and the related fraud alleged by the SEC and the State of Vermont have affected many Vermonters,” stated James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation. “The defendants’ broken business promises have left not only a physical scar on the city of Newport, but also an intangible scar on the promise of economic development for the Northeast Kingdom and on the dreams of many hopeful immigrants. By seeking to hold accountable those who break the law and cause such harm, we hope to help to heal these scars. The dedicated work and cooperation among the FBI, IRS, FDA and U.S. Attorney’s Office have resulted in the arrests today. The FBI will continue working with our law enforcement partners to stop those who abuse government programs for their own gain.”
“As alleged in the indictment, the defendants obtained tens of millions from investors in connection with an EB-5 offering that was based on misleading statements and involved a misuse of the money raised,” said Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation, Boston Field Office. “IRS-CI’s tracing of the investors’ funds helped investigators uncover the breadth of the alleged fraud and we are proud of our role in this collaborative law enforcement effort.”
The indictment alleges a scheme conceived in 2011 and carried through until the defendants lost control of the project in April 2016. The AnC project was the seventh EB-5 project managed by Quiros and Stenger, but the first involving a business outside a ski resort. The defendants designed the project to raise $110 million from immigrant investors in order to build and operate a biotechnology company, AnC Vermont, on a property in Newport. From 2012 to 2016, the defendants obtained over $80 million from over 160 immigrant investors in the AnC project. Under the EB-5 program created by Congress, immigrant investors could obtain lawful permanent residency (green cards) by investing $500,000 each in a United States business that would create ten jobs per investment. Pursuant to federal law, the AnC project was regulated and monitored by USCIS and the Vermont Regional Center, a part of state government.
According to the indictment, the defendants’ scheme involved both secret embezzlement of immigrant investor funds and deceit about the AnC project’s jobs and revenue. The defendants designed the project so that Quiros and Choi, who were secret partners, could siphon millions of dollars in investor funds into their pockets. As the defendants raised investor money, Quiros used the money for his own purposes instead of using it to build the project. The defendants then concealed this misuse of funds.
The indictment also charges that the defendants created a fraudulent AnC business plan based on a “party line” conceived to misrepresent the number of jobs that would be created by the project and the business revenue that would be generated from the project. Marketing the project to immigrant investors depended on job creation and future revenue, since the defendants emphasized their ability to satisfy the job creation standards under EB-5 law and repay immigrant investors. The indictment charges that the defendants devised job and revenue projections based on the number of jobs needed to obtain project approval from USCIS without regard to a viable plan to actually create those jobs or achieve those revenues. AnC Vermont would supposedly rent clean rooms, market stem cell therapies, and manufacture artificial organs. The defendants made fraudulent statements in regard to all three facets of the future business, in particular with regard to how soon the project would generate jobs and revenue. Rather than disclose that they were creating a start-up business that would need large capital reserves to operate in the early stages, the defendants falsely represented that they had a plan where AnC Vermont would successfully market its products as soon as construction was complete.
In addition to the wire fraud and wire fraud conspiracy charges, the indictment charges Quiros with two money laundering counts relating to two transactions where he used AnC investor funds for personal expenses, specifically a $6 million payment to the IRS and the purchase of a vehicle.
Further, the indictment contains five concealment or false statement counts. First, it alleges that the defendants concealed from the Vermont Regional Center how Quiros used approximately $21 million in investor funds to pay off a loan unrelated to the AnC Vermont project. Next, the indictment alleges that Quiros, Kelly, and Choi concealed that Choi was being investigated in Korea for financial crimes, and falsely represented that AnC Korea, a company they claimed would supply the technologies that AnC Vermont would market, was not in financial distress.
Finally, the indictment charges Stenger with presenting false documents and statements to the Vermont Regional Center. One of these counts focuses on a misrepresentation by Stenger that he had followed the Regional Center’s direction to stop marketing the AnC project in mid-2014. The other charges as false a written presentation Stenger made to the Regional Center in January 2015 as he was seeking permission to continue recruiting investors for the AnC project.
Quiros, Kelly, and Stenger surrendered to the custody of the United States Marshals Service this morning and are scheduled to appear for arraignment on the charges in federal court later today. Choi remains at large.
The United States Attorney expresses her gratitude for the outstanding investigation leading up to these charges by the Federal Bureau of Investigation, the Criminal Investigation Divisions of the Internal Revenue Service, the Food and Drug Administration and for the assistance of the Justice Department’s Office of International Affairs. The prosecutors handling the case are Assistant U.S. Attorneys Nicole Cate and Paul Van de Graaf. Ariel Quiros is represented by Seth Levine, Esq. William Kelly is represented by Robert Goldstein, Esq. William Stenger is represented by Brooks McArthur, Esq.
Former U.S. Postal Service Employee Sentenced for Embezzling MailRead the Press Release
Jackson, Miss. – Latoya Rosell, 34, of Flora, was sentenced today by U.S. District Judge Carlton W. Reeves to two years of probation for embezzling mail matter during the course of her employment with the U.S. Postal Service, announced U.S. Attorney Mike Hurst and Special Agent in Charge Chris Cave, U.S. Postal Service Office of Inspector General, Southern Area Field Office. Rosell was also ordered to pay a $1500 fine and $100 in restitution to one of the victims of her crime.
Rosell was employed as a Rural Carrier Associate at the Ridgeland Post Office in Ridgeland, Mississippi. On August 15, 2018, agents were notified that expected mail matter was not being delivered along Rosell’s route. A subsequent operation run by investigators utilized monitored test pieces to confirm that Rosell was embezzling mail containing gift cards and U.S. currency. When confronted, Rosell admitted she had been embezzling the mail and immediately resigned her position. Agents recovered some, but not all, of the property embezzled by Rosell.
On December 12, 2018, Rosell was charged in a criminal indictment with embezzling mail. She pled guilty before Judge Reeves on February 20, 2019.
This case was investigated by the U.S. Postal Service Office of Inspector General. It was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Former Tax Protestor Sentenced to Prison for Evading TaxesRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Richard J. Clark (age 71) was sentenced on May 21, 2019 in federal court in Milwaukee to 14 months in prison, to be followed by three years of supervised release, and ordered to pay $213,000 in restitution to the IRS.
Clark, who resides in Mukwonago, previously operated Foremost Realty, LLC, a real estate business that listed, maintained, and sold foreclosed property in southeastern Wisconsin. During the years 2008 – 2013, Clark, through his business, received approximately $1.6 million in commissions. Despite receiving these commissions, Clark filed tax returns that either listed $0 on all lines of the returns, reporting no income or tax obligations, or reported very minimal income and taxes. As a result, during the years 2008-2013, Clark evaded more than $400,000 in federal income taxes.
Clark was previously the subject of a civil action brought by the U.S. Department of Justice concerning his 2002-2007 tax returns, on which Clark also reported no income or taxes. At sentencing, Clark acknowledged his former tax-protestor beliefs but stated that he had abandoned those misguided beliefs and intended to dedicate himself to making amends and repaying the taxes he owes.
This matter was investigated by the criminal investigation division of the Internal Revenue Service. The prosecution was handled by Assistant United States Attorney Matthew L. Jacobs.
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Former Olympic Athlete and Coach Found Guilty of Coercion/Enticement and Transportation of A Minor with the Intent of Committing A Criminal Sexual ActRead the Press Release
SAN JUAN, P.R. – After a three-day jury trial, Alexander Greaux-Gómez was found guilty of sexual enticement of a minor, and transportation with intent to engage in criminal sexual activity, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Judge Francisco A. Besosa presided over the trial.
On February 9, 2017, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents, working jointly with Puerto Rico Police Department’s Division of Sexual Crimes in Guayama, and prosecutors from the Puerto Rico Department of Justice, arrested Greaux-Gómez, former teacher and track and field coach of the Salinas’s specialized sports school, “Albergue Olímpico,” for sexual enticement of a minor and production of child pornography.
On March 8, 2017 the defendant was indicted for production of child pornography, sexual enticement of a minor, and transportation with intent to engage in criminal sexual activity. During the trial, the government’s evidence proved that the female minor first met the defendant in 7th grade when she went to train and attend boarding school at “Albergue Olímpico.” The defendant, a former Olympic athlete, took a special interest in the minor. This interest became personal and then eventually sexual in nature. The minor was 15 years old and the defendant was 39 when he began preying on her and convincing her to engage in sexual acts at the school, in his car, and at an abandoned home school he once operated.
The defendant also had strict rules he gave to the minor over WhatsApp about the secrecy of their relationship and would send extremely sexually graphic communications to her.
“This conviction shows the commitment of our state and federal law enforcement agencies to apprehend and prosecute child predators,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “We entrust teachers to serve as role models for our children and safeguard their welfare. As this verdict makes clear, when that trust is violated, there will be severe consequences.”
The case was prosecuted by Assistant United States Attorney Ginette Milanes. The defendant faces a mandatory minimum sentence of 10 years in prison. The sentencing is scheduled for August 22, 2019 at 9:00 am.
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Former New Haven City Employee Admits Embezzling $100KRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DANIEL LION, 64, of Hamden, waived his right to be indicted and pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to one count of wire fraud stemming from a long-running embezzlement scheme.
According to court documents and statements made in court, Lion was employed by the City of New Haven for approximately 40 years, most recently in the city’s accounting department. New Haven has a policy where employees can be paid in advance if they are about to take approved vacation leave. As part of his employment, Lion had access to the city’s payroll system.
From approximately 2002 to June 2018, Lion periodically accessed the city’s financial accounting software to issue vacation paychecks to himself. He then deleted the computer entries for the checks, which caused the payroll system to issue his regular paycheck, as well. Through this scheme, Lion stole $102,947.44 from the City of New Haven.
Judge Hall scheduled sentencing for September 4, 2019, at which time Lion faces a maximum term of imprisonment of 20 years, a fine of up to $250,000, and an order of restitution. Lion is released pending sentencing.
Lion retired from the City of New Haven in March 2019.
This ongoing investigation is being conducted by the Connecticut Financial Crimes Task Force, U.S. Secret Service and New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Former Jacksonville High School Teacher Pleads Guilty to Distributing Child PornographyRead the Press Release
Jacksonville, Florida – Jordan Frederic Schemmel (37, Ormond Beach) has pleaded guilty to distributing child pornography over the internet. He faces a mandatory minimum penalty of 5 years, and up to 20 years, in federal prison and a potential life term of supervised release. Additionally, Schemmel will be required to register as a sex offender. A sentencing date has not yet been set.
According to court documents, on September 5, 2018, Schemmel, using the user name “Profsunrise15,” responded to a message on an internet bulletin board frequented by individuals with a sexual interest in children. This message had been posted by an undercover FBI agent. Schemmel then began an online conversation with the agent using a popular social messaging application. After some conversation about sexual interest in children, Schemmel sent the agent a video that depicted a young child being sexually assaulted by an adult male, and later sent a photo depicting similar criminal conduct with a child. FBI agents were able to identify the IP address used by Schemmel and tracked it to his residence. At that time, Schemmel was a teacher at Terry Parker High School in Jacksonville.
On October 19, 2018, law enforcement executed a search warrant at Schemmel’s home. During an interview, Schemmel stated that he had sent the child-pornographic video using the app, and that he had previously tried unsuccessfully to stop viewing child pornography on a number of occasions. A forensic examination of his smartphone and a thumb drive seized from his home revealed that Schemmel had collected 106 images and 28 videos depicting young children being sexually abused.
This case was investigated by the FBI, United States Customs and Border Protection, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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.justice.gov/psc.
Former Canton resident extradited from Vietnam to face child pornography chargesRead the Press Release
A former Canton resident was extradited from Vietnam to face child pornography charges.
The two-count indictment was unsealed Wednesday upon the extradition of Larry P. Smith from Vietnam. Smith, 67, was indicted on one count of receipt and distribution of child pornography and one count of possession of child pornography.
Smith knowingly received and distributed numerous computer filed containing visual depictions of minors engaged in sexually explicit conduct in October 2013. On November 20, 2013, Smith possessed several laptops, an Apple computer and hard drives that contained images of prepubescent children engaged in sexual activity, according to the indictment.
Smith lived in Canton at the time of the alleged offenses, then moved to Florida prior to his indictment. He was located in Vietnam and was returned to the United States Wednesday. He is scheduled to appear in federal court later this afternoon in Seattle.
This case was investigated by the FBI and Canton Police Department. It is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Former Burns Municipal Airport Manager Sentenced to Probation for Stealing Surplus Federal PropertyRead the Press Release
EUGENE, Ore.—Jeffrey Robert Cotton, 45, the former Manager of the Burns Municipal Airport in Burns, Oregon, was sentenced today to 4 years’ probation and 300 hours of community service for stealing thousands of dollars of equipment that rightfully belonged to the City of Burns, by converting to his personal use property acquired through the Federal Personal Property Utilization Program.
The Federal Personal Property Utilization Program is intended to benefit state and local governments and eligible organizations by giving them property the federal government no longer needs at no cost.
According to court documents, between 2014 and 2016, Cotton acquired, allegedly on behalf of the airport, numerous pieces of federal excess property including a heater/air conditioner, commercial lighting sets and various trucks and vans, tractors, and other heavy equipment.
Throughout the acquisition process, Cotton failed to fully inform or notify the City of Burns, its mayor, city manager or city council of the federal excess property obtained on its behalf. Instead, Cotton illegally converted much of the property to his personal use, either by titling property in his own name or transferring the property to Emergency Equipment Solutions, Inc. (EES), a nonprofit fully owned and operated by Cotton.
When confronted with the theft, Cotton lied and misrepresented information regarding how he had obtained the property. Additionally, Cotton signed phony bills of sale falsely representing that EES had purchased the property. Records show thousands of dollars were transferred from EES to Cotton personally.
On April 11, 2019, Cotton pleaded guilty to two counts of theft from a local government receiving federal funds.
This case was investigated by the General Services Administration Office of Inspector General and the FBI, and was prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Five People Charged with Forced Labor Conspiracy Involving Trafficking of Victims from Georgia to Work on Wisconsin FarmsRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced today that five people were indicted for conspiracy to commit forced labor, labor trafficking, and five additional labor-related offenses. The defendants are alleged to have trafficked the victims from Georgia to Wisconsin to work on farms located in the Eastern District of Wisconsin in 2016.
The indictment named:
Name
Age
Residence
Saul Garcia
49
Moultrie, GA
Saul Garcia, Jr
26
Moultrie, GA
Daniel Garcia
28
Moultrie, GA
Consuelo Garcia
45
Moultrie, GA
Maria Remedios Garcia-Olalde
52
Mexican National
According to the indictment, the defendants conspired to provide the labor and services of fourteen adult victims, all of whom are male Mexican nationals, by means of (1) serious harm and threats of serious harm, (2) abuse and threatened abuse of legal process, and (3) a scheme intended to cause the victims to believe that, if they did not perform such labor and services, they would suffer serious harm. The indictment alleges that to restrict the victims’ movement and ability to travel while in Wisconsin, the defendants’ possessed the victims’ passports. Two of the five defendants—Saul Garcia Sr. and Maria Remedios Garcia-Olalde—were also indicted on obstruction charges.
“Trafficking another human being is a particularly vile crime,” said U.S. Attorney Krueger. “The Department of Justice is committed to prosecuting anyone who seeks to sell another person’s freedom.”
If convicted, the defendants face up to 20 years in prison on the charges of forced labor conspiracy, trafficking with respect to forced labor, financial benefit from forced labor, obstruction of a labor trafficking investigation, and witness tampering. The indictment also identifies fifteen real properties located in Georgia.
The defendants were charged based on a multi-year investigation by law enforcement agents and officers from the Federal Bureau of Investigation’s Human Trafficking Task Force, including special agents and officers representing the Department of Labor Office of Inspector General, the Federal Bureau of Investigation, Homeland Security Investigations and the City of Racine Police Department.
The case is being prosecuted by Assistant United States Attorneys Laura S. Kwaterski, Erica J. Lounsberry, and Karine Moreno-Taxman.
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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Five Eastern Iowa Men Charged with Sex Trafficking MinorsRead the Press Release
DES MOINES, Iowa – On May 15, 2019, a federal grand jury returned an Indictment charging five defendants with sex trafficking announced United States Attorney Marc Krickbaum. All five defendants have been arrested and appeared in federal court in Des Moines, Iowa. Trial is expected to be scheduled for a date later this year, before United States District Court Judge Stephanie M. Rose. The defendants are currently in federal custody.
According to the Indictment, Arrion Marcus West, age 25, is alleged to have sex trafficked one minor victim in October and November 2018, and sex trafficked a second minor victim by force, fraud, and coercion, from January through March 2018. West is further alleged to have provided marijuana to the second victim. West is alleged to have enticed, recruited, and transported minor victims to engage in commercial sex acts, and taken proceeds from those commercial sex acts.
Albert Kelly Price, age 39, is charged with trafficking three separate minor victims by force, fraud, and coercion, and with distributing marijuana to two of those victims. Price is alleged to have transported the minor victims to hotels and other locations where he paid minor victims to engage in sex acts, all while in reckless disregard of the fact they were under the age of 18. The Indictment further alleges Price knew that force, fraud, or coercion was used to cause them to engage in commercial sex acts, in that the government alleges Price himself used force, fraud, and coercion on at least one occasion with each minor victim.
Kendall Andrew Streb, age 52, is charged with several sex trafficking, drug, and firearm offenses, occurring between February 2018 and February 2019. Streb is charged with sex trafficking two separate minors, by transporting those minors to hotel rooms, and paying the minor victims to engage in sex acts. Streb is also charged with distributing methamphetamine to minors, possession with intent to distribute methamphetamine, and with offenses related to possessing firearms while being a drug user and in connection with a drug trafficking offense.
Tommy Tate Collins, age 40, is charged with sex trafficking a minor, and distributing marijuana and cocaine to that minor. Collins is also alleged to have paid the minor victim to engage in commercial sex acts, knowing and in reckless disregard of the fact that she was under the age of 18.
Isaiah Devon Patterson, age 21, is charged with one count of sex trafficking a minor victim. Patterson is alleged to have advertised a minor victim for commercial sex acts, while he knew that she was under the age of 18.
The Indictment alleges that all of these acts occurred within the Southern District of Iowa, in the Johnson County area, and elsewhere.
The public is reminded that an Indictment is merely an accusation, and the defendants are presumed innocent unless they are proven guilty.
Each defendant charged with the offense of sex trafficking by force, fraud, or coercion is subject to a fifteen-year mandatory minimum term of imprisonment up to life imprisonment. Sex trafficking of children, without the allegation of force, fraud, or coercion, carries a ten-year mandatory minimum, and a maximum term of imprisonment of life. West, Streb, Price, and Collins are also charged with coercion and enticement of a minor, which also carries a ten-year mandatory minimum, up to life imprisonment.
Human trafficking is a crime involving the exploitation of youth under the age of 18 for commercial sex; the exploitation of adults for commercial sex through the use of force, fraud, or coercion; and the exploitation of any individual for compelled labor. Human trafficking does not require the transportation of individuals across state lines, or that someone is physically restrained. Signs that a person is being trafficked can include working excessively long hours, unexplained gifts, physical injury, substance abuse issues, running away from home, isolation from others, or having a person in their life controlling them or monitoring them closely. Victims particularly susceptible to being trafficked include those with criminal histories, a history of physical or sexual abuse, uncertain legal status, and dependency on controlled substances. Individuals who purchase sex from minors or from those who are otherwise exploited for commercial sex are also subject to prosecution for sex trafficking under federal law, if they knew or were in reckless disregard of the fact that they were under the age of 18, or that force, fraud, or coercion was used.
Anyone who suspects human trafficking is occurring, be it a minor engaging in paid sex acts, or anyone being coerced into prostitution or labor, is urged to call the National Human Trafficking Hotline at 1-888-373-7888. If anyone has information about these defendants, they are urged to call the Hotline.
The investigation has been spearheaded by the Iowa City Police Department. Investigative support has been provided by the Iowa Division of Criminal Investigation, Johnson County Sheriff’s Office, Coralville Police Department, and Federal Bureau of Investigation. The Johnson County Attorney’s Office has assisted with the prosecution. This case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Federal Grand Jury Charges San Fernando Valley Man with Planning Long Beach Terror Attack in Plot to Cause Mass CasualtiesRead the Press Release
LOS ANGELES – A federal grand jury has indicted a San Fernando Valley man for his role in planning to bomb a rally in Long Beach last month for the purpose of causing mass casualties.
Mark Steven Domingo, 26, of Reseda, a former U.S. Army infantryman who was deployed to Afghanistan, was previously arrested on a criminal complaint in this case. The indictment returned today formally charges him with providing material support to terrorists and attempted use of a weapon of mass destruction. If convicted, he would face statutory maximum sentence of life in federal prison.
Domingo, who has been in federal custody since his arrest last month, is scheduled to be arraigned on the indictment on May 31 in United States District Court.
According to the affidavit filed with the criminal complaint, Domingo, in online posts and in conversations with an FBI source, expressed support for violent jihad, a desire to seek retribution for attacks against Muslims, and a willingness to become a martyr. After considering various attacks – including targeting Jewish people, churches, and police officers – Domingo decided to bomb a rally scheduled to take place in Long Beach last month. As part of the plot, Domingo asked a confederate – who actually was working with the FBI as part of the investigation – to find a bomb-maker. Domingo then purchased and provided to the confederate and the bomb-maker, who actually was the undercover officer, several hundred nails to be used as shrapnel for the bombs.
Leading up to the planned attack, Domingo called for another event similar to the October 2017 mass shooting in Las Vegas to give Americans “a taste of the terror they gladly spread all over the world,” the complaint states. Following an attack on Muslims in New Zealand on March 15, Domingo wrote in an online post, “there must be retribution,” according to the complaint.
On April 26, Domingo received what he thought was a live bomb, but in fact was an inert explosive device that was delivered by an undercover law enforcement officer. According to the criminal complaint, after receiving the bomb, Domingo drove his confederate and the undercover officer to Long Beach to scout the location Domingo planned to attack. While there, Domingo discussed finding the most crowded areas in order to kill the most people. Domingo was arrested shortly after returning from scouting the intended attack location.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter is the product of an investigation by the FBI’s Joint Terrorism Task Force. JTTF members who participated in the investigation include the FBI, the Los Angeles Police Department, the Naval Criminal Investigative Service, the Los Angeles County Sheriff's Department, and the Long Beach Police Department.
This case is being prosecuted by Assistant United States Attorneys Reema M. El-Amamy and David T. Ryan of the Terrorism and Export Crimes Section at the United States Attorney’s Office for the Central District of California and Trial Attorney Ranganath Manthripragada of the Counterterrorism Section at the Department of Justice’s National Security Division.
Federal Grand Jury Charges San Fernando Valley Man with Planning Long Beach Terror Attack in Plot to Cause Mass CasualtiesRead the Press Release
A federal grand jury has indicted a San Fernando Valley man for his role in planning to bomb a rally in Long Beach last month for the purpose of causing mass casualties. Assistant Attorney General for National Security John C. Demers and U.S. Attorney Nicola T. Hanna for the Central District of California made the announcement.
Mark Steven Domingo, 26, of Reseda, California, a former U.S. Army infantryman who was deployed to Afghanistan, was previously arrested on a criminal complaint in this case. The indictment returned today formally charges him with providing material support to terrorists and attempted use of a weapon of mass destruction. If convicted, he would face a statutory maximum sentence of life in federal prison.
Domingo, who has been in federal custody since his arrest last month, is scheduled to be arraigned on the indictment on May 31 in United States District Court.
According to the affidavit filed with the criminal complaint, Domingo, in online posts and in conversations with an FBI source, expressed support for violent jihad, a desire to seek retribution for attacks against Muslims, and a willingness to become a martyr. After considering various attacks – including targeting Jewish people, churches, and police officers – Domingo decided to bomb a rally scheduled to take place in Long Beach last month. As part of the plot, Domingo asked a confederate – who actually was working with the FBI as part of the investigation – to find a bomb-maker. Domingo then purchased and provided to the confederate and the bomb-maker, who was actually an undercover officer, several hundred nails to be used as shrapnel for the bombs.
Leading up to the planned attack, Domingo called for another event similar to the October 2017 mass shooting in Las Vegas to give Americans “a taste of the terror they gladly spread all over the world,” the complaint states. Following an attack on Muslims in New Zealand on March 15, Domingo wrote in an online post, “there must be retribution,” according to the complaint.
On April 26, Domingo received what he thought was a live bomb, but in fact was an inert explosive device that was delivered by the undercover law enforcement officer. According to the criminal complaint, after receiving the bomb, Domingo drove his confederate and the undercover officer to Long Beach to scout the location Domingo planned to attack. While there, Domingo discussed finding the most crowded areas in order to kill the most people. Domingo was arrested shortly after returning from scouting the intended attack location.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter is the product of an investigation by the FBI’s Joint Terrorism Task Force. JTTF members who participated in the investigation include the FBI, the Los Angeles Police Department, the Naval Criminal Investigative Service, the Los Angeles County Sheriff's Department, and the Long Beach Police Department.
This case is being prosecuted by Assistant United States Attorneys Reema M. El-Amamy and David T. Ryan of the Terrorism and Export Crimes Section at the United States Attorney’s Office for the Central District of California and Trial Attorney Ranganath Manthripragada of the Counterterrorism Section at the Department of Justice’s National Security Division.
Facebook Seller Sentenced for Robbing and Shooting CustomerRead the Press Release
St. Louis, MO – Natez Fisher, 19, of St. Louis, MO, was sentenced to 120 months in prison for one count of interference with commerce by robbery. He appeared in federal court today before U.S. District Judge Ronnie L. White.
According to court documents, on April 16, 2018, Natez Fisher placed an advertisement on Facebook Marketplace for the sale of a gaming system. The victim agreed to purchase the item and met with Fisher at a pre-arranged location. Fisher entered the victim’s car and asked to see the victim’s money. Once the victim produced the money, Fisher pointed a firearm at the victim and demanded the money. Fischer and the victim struggled over the firearm. The victim was shot in the leg during the struggle. Fisher exited the car and fled on foot. He was eventually arrested by federal agents.
This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney Jennifer Roy handled the case for the U.S. Attorney’s Office.
Elyria man indicted on charges of trafficking fentanyl, cocaine, methamphetamine and crack cocaineRead the Press Release
An Elyria man was indicted on charges of trafficking fentanyl, cocaine, methamphetamine and crack cocaine.
The four-count indictment alleges that Terry L. Jackson, Sr., on February 26, 2019, sold crack cocaine and possessed four grams of fentanyl, 17 grams of cocaine and 1.5 grams of methamphetamine.
This case is one of dozens prosecuted as part of Operation Synthetic Opioid Surge (SOS), in in which any cases involving heroin, fentanyl or any synthetic opioid are prosecuted in federal court. Lorain County is one of 10 communities around the nation selected as a pilot for Operation SOS. The program demonstrates the Justice Department’s continued to commitment to working with local partners to make our community safer.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case was investigated by the Elyria Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Robert Kolansky and Vasile Katsaros.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Elyria man indicted for bringing 14-year-old girl from California to Ohio to engage in unlawful sexual activity, as well as child pornography chargesRead the Press Release
An Elyria man was indicted for bringing a 14-year-old girl from California to Ohio to engage in unlawful sexual activity, as well as child pornography charges.
Jeremy L. Cruz, 39, was indicted on one count of transportation of a minor with intent to engage in unlawful sexual activity, one count of receipt of child pornography and one count of transportation of child pornography.
Cruz, between April 13 through April 18, 2019, knowingly transported a 14 year-old girl, in interstate commerce from California to Ohio, with the intent that such 14 year-old girl engage in sexual activity, according to the indictment.
The indictment also charges that from on or about January 1, 2017 through on or about April 15, 2019, Cruz knowingly received visual depictions of a real minor engaged in sexually explicit conduct.
The indictment also charges that from April 13 through April 18, 2019, Cruz did knowingly transported numerous visual depictions of real minors engaged in sexually explicit conduct.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Cleveland and Los Angeles offices of the Federal Bureau of Investigation, Avon Lake Police Department, Elyria Police Department, Sheffield Lake Police Department and Santa Maria (California) Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Durham Woman Sentenced for Heroin DistributionRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that United States District Judge James C. Dever, III sentenced DOMINQUE RUSSELL, 30, of Durham to 24 months of imprisonment followed by 3 years of supervised release. On December 28, 2018, RUSSELL pled guilty to possession with intent to distribute a quantity of heroin.
On January 21, 2018, and January 28, 2018, officers with the Henderson Police Department (HPD) utilized a confidential source to conduct controlled buys of heroin from the occupants at 521 Spring Court in Henderson, North Carolina.
On January 31, 2018, law enforcement executed a search warrant on the home. In the room belonging to Jermill Blacknall (in federal custody awaiting Arraignment date) and RUSSELL, officers recovered a loaded rifle with two "banana clips" containing 27 and 28 rounds of ammunition, a 9mm 50-round magazine "drum" with 28 rounds, an empty Glock magazine in a Glock box (no gun), and identification belonging to Blacknall. A search of the remainder of the home revealed scales, a blender with white powder residue, 18.99 grams of heroin (in a car seat), and packaging material. Blacknall and RUSSELL'S two young children were also in the house.
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. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Henderson Police Department. Assistant United States Attorney Robert J. Dodson handled the prosecution of this case for the government.
District Court Orders Illinois Compounding Company and Two Executives to Comply with Drug Safety StandardsRead the Press Release
A federal court entered a consent decree of permanent injunction requiring a multi-site outsourcing compounding pharmacy, headquartered in Illinois, to comply with provisions of the Federal Food, Drug, and Cosmetic Act (the Act) while manufacturing, holding, and distributing drugs.
In a complaint filed May 20, 2019, at the request of the U.S. Food and Drug Administration, the United States alleged that PharMedium Services LLC (PharMedium) violated the Act by distributing adulterated, misbranded, and unapproved new drugs in interstate commerce. As described in the complaint, PharMedium operated four registered outsourcing facilities in Tennessee, Mississippi, Texas, and New Jersey. According to the complaint, PharMedium’s drugs were adulterated because they were prepared, packed, or held under insanitary conditions whereby they may have been contaminated with filth or rendered injurious to health and because PharMedium failed to comply with current good manufacturing practices. The complaint also alleged that PharMedium distributed unapproved new drugs and misbranded drugs because PharMedium failed to comply with all of the requirements for drugs compounded in a registered outsourcing facility.
As a result of FDA inspections, PharMedium voluntarily ceased operations at one facility in Memphis, Tennessee. The company also agreed to be bound by a consent decree filed with the complaint in the U.S. District Court for the Northern District of Illinois. In addition, Scott Aladeen, PharMedium’s new president, and Warren Horton, PharMedium’s new vice president for Quality and Research & Development, are named in the complaint and consent decree as the individuals responsible for establishing and maintaining PharMedium’s current and future compliance with the Act.
“The Department of Justice is committed to ensuring that compounding pharmacies follow safety laws that protect consumers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will continue to work with the FDA to ensure that drugs are manufactured and distributed appropriately under the law.”
“PharMedium exposed patients across the United States to risk of receiving a harmful drug, which we find unacceptable,” said Acting FDA Commissioner Ned Sharpless M.D. “We will continue to take appropriate enforcement actions when compounding pharmacies and outsourcing facilities produce drugs under substandard conditions or use inappropriate practices that could lead to serious harm to patients.”
The consent decree entered by the court permanently enjoins the defendants from violating the Act. As part of the settlement, PharMedium may not manufacture, hold, or distribute its drugs from the Memphis facility unless PharMedium complies with specific remedial measures set forth in the consent decree. PharMedium must also comply with remedial measures to ensure compliance with the Act at its other facilities and at its headquarters in Illinois.
Trial attorneys Shannon Pedersen and Claude Scott of the Civil Division’s Consumer Protection Branch represented the United States, along with the assistance of Associate Chief Counsel Laura Akowuah of the FDA’s Office of Chief Counsel and the U.S. Attorney’s Office for the Northern District of Illinois.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Illinois, visit its website at https://www.justice.gov/usao-ndil.
District Court Enters Permanent Injunction Against Texas Compounding Pharmacy and its OwnersRead the Press Release
HOUSTON – A federal court has entered a consent decree of permanent injunction against defendants Pharm D Solutions LLC (Pharm D); co-owner and Pharmacist-in-Charge Luis R. De Leon and co-owner and pharmacist Juan C. De Leon, announced the Department of Justice. The injunction permanently enjoins the defendants from distributing adulterated, misbranded and unapproved new drugs in violation of the federal Food, Drug and Cosmetic Act (FDCA).
The Department filed a complaint in the U.S. District Court for the Southern District of Texas (SDTX) today at the request of the U.S. Food and Drug Administration (FDA), alleging, among other things, the defendants failed adequately to address insanitary conditions at their drug-compounding facility.
As part of the ordered permanent injunction, the defendants cannot resume manufacturing, processing or distributing sterile drugs until FDA determines that they have complied with specific remedial measures. Those measures seek to ensure that defendants manufacture and distribute drugs in conformity with applicable manufacturing standards.
“The FDCA is designed to protect the public health,” said SDTX U.S. Attorney Ryan K. Patrick. “Our district is a committed partner in enforcing the provisions of the Act in the interest of public safety.”
“Compounding pharmacies must produce drugs that are reliably safe and sterile,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will continue to work closely with FDA to enforce the provisions of the FDCA.”
“We understand that compounded drugs can be important for patients whose medical needs cannot be met by FDA-approved drug products, and we’re continuing efforts to advance policies to help further improve the quality of compounded products,” said Acting FDA Commissioner Ned Sharpless, M.D.
“These drugs are not approved by the FDA and have not been evaluated for safety or efficacy, so when they’re not appropriately compounded, they have the potential to cause patients harm. We’ll continue taking enforcement actions, like the one we’re taking today, to ensure that these companies and products do not put patient health at risk.”
According to the complaint, defendants’ drugs were adulterated because they were prepared, packed or held under insanitary conditions whereby they may have been contaminated or may have been rendered injurious to health. For example, the complaint alleges that during a 2018 FDA inspection, defendants’ employees failed to demonstrate proper aseptic technique by, among other things, leaning into sterile areas with exposed skin and failing to maintain clean air supply when handling products intended to be sterile. The complaint further alleges that defendants failed to appropriately investigate instances of microbial contamination, mold and yeast recovered from sterile processing areas.
Pharm D initiated a voluntary recall of all compounded drug products intended to be sterile after the September 2018 FDA Inspection raised concerns about practices at the pharmacy. Pharm D also temporarily ceased sterile production at that time.
The government is represented by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch and SDTX Assistant U.S. Attorney Melissa M. Green with the assistance of Associate Chief Counsel of Enforcement Samantha Hong of the Department of Health and Human Services’ Office of General Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found HERE. For more information about the U.S. Attorney’s Office for the Southern District of Texas, visit its website.
District Court Enters Permanent Injunction Against Texas Compounding Pharmacy and Its Owners to Prevent Distribution of Adulterated DrugsRead the Press Release
A federal court entered a consent decree of permanent injunction against defendants Pharm D Solutions LLC (Pharm D); Luis R. De Leon, co-owner and Pharmacist-in-Charge; and Juan C. De Leon, co-owner and pharmacist, the Department of Justice announced today. The injunction permanently enjoins the defendants from distributing adulterated, misbranded, and unapproved new drugs in violation of the federal Food, Drug, and Cosmetic Act (FDCA).
The Department filed a complaint in the U.S. District Court for the Southern District of Texas on May 20, 2019, at the request of the U.S. Food and Drug Administration (FDA), alleging, among other things, that the defendants failed adequately to address insanitary conditions at their drug-compounding facility.
As part of the ordered permanent injunction, defendants cannot resume manufacturing, processing, or distributing sterile drugs until FDA determines that they have complied with specific remedial measures. Those measures seek to ensure that defendants manufacture and distribute drugs in conformity with applicable manufacturing standards.
“Compounding pharmacies must produce drugs that are reliably safe and sterile,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will continue to work closely with FDA to enforce the provisions of the Food, Drug, and Cosmetic Act.”
“The Food, Drug, and Cosmetic Act is designed to protect the public health,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “Our district is a committed partner in enforcing the provisions of the Act in the interest of public safety.”
“We understand that compounded drugs can be important for patients whose medical needs cannot be met by FDA-approved drug products, and we’re continuing efforts to advance policies to help further improve the quality of compounded products,” said Acting FDA Commissioner Ned Sharpless, M.D. “These drugs are not approved by the FDA and have not been evaluated for safety or efficacy, so when they’re not appropriately compounded, they have the potential to cause patients harm. We’ll continue taking enforcement actions, like the one we’re taking today, to ensure that these companies and products do not put patient health at risk.”
According to the complaint, defendants’ drugs were adulterated because they were prepared, packed, or held under insanitary conditions whereby they may have been contaminated or may have been rendered injurious to health. For example, the complaint alleges that during a 2018 FDA Inspection, defendants’ employees failed to demonstrate proper aseptic technique by, among other things, leaning into sterile areas with exposed skin and failing to maintain clean air supply when handling products intended to be sterile. The complaint further alleges that defendants failed to appropriately investigate instances of microbial contamination, mold, and yeast recovered from sterile processing areas.
Pharm D initiated a voluntary recall of all compounded drug products intended to be sterile after the September 2018 FDA Inspection raised concerns about practices at the pharmacy. Pharm D also temporarily ceased sterile production at that time.
The government is represented by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Melissa M. Green of the U.S. Attorney’s Office for the Southern District of Texas, with the assistance of Associate Chief Counsel, Enforcement, Samantha Hong of the Department of Health and Human Services’ Office of General Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Texas, visit its website at https://www.justice.gov/usao-sdtx.
Des Moines Woman and Man Sentenced to Prison for Firearms OffensesRead the Press Release
DES MOINES, IA – On April 12, 2019, Tonnyia Barae Bruce, age 34, of Des Moines, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 18 months in prison for six counts of unlawful disposition of a firearm, announced United States Attorney Marc Krickbaum. Bruce was ordered to serve three years of supervised release following her prison term and to pay $600 to the Crime Victims’ Compensation Fund. Bruce pleaded guilty to the charges on November 15, 2018.
On May 21, 2019, Bruce’s co-defendant, Nikko Alejandro Gatewood, age 24, of Des Moines was also sentenced by Judge Goodgame Ebinger to 100 months in prison for seven counts of felon in possession of a firearm. Gatewood was ordered to serve three years of supervised release to follow his prison term and pay $700 to the Crime Victims’ Compensation Fund. Gatewood pleaded guilty to the charges on November 20, 2018.
According to court documents, from at least August 2017 through July 2018, Bruce purchased nine firearms at the direction of her boyfriend and co-defendant, Gatewood, whom she knew was a convicted felon. Gatewood then sold these guns on the street. At least one of the guns sold was later recovered after it was used in connection with a drug trafficking offense.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Des Moines Police Department, Iowa Division of Criminal Investigation, and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office-Southern District of Iowa.
Delaware County Child Predator Sentenced for Naturalization FraudRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Weixing Chen, 30, of Brookhaven, PA was sentenced today to 12 months imprisonment and three years supervised release by Judge Paul S. Diamond. Chen pleaded guilty on December 5, 2018 to one count of procuring naturalization unlawfully and two counts of making a false statement in a naturalization proceeding. The defendant will lose his United States citizenship and will be deported to China after he serves his term of imprisonment.
During the filing of his naturalization application and the interview process with United States Citizenship and Immigration Services (“USCIS”), the defendant deliberately concealed the fact that he was currently soliciting sex from minors and collecting child pornography. He also falsely claimed that he had not committed any crimes prior to applying for naturalization. In reality, before being sworn in as a United States citizen, the defendant was electronically communicating with two individuals whom he believed to be minors in order to have sexual contact with them. He was convicted of various child exploitation offenses in Delaware County in 2015 after becoming a citizen.
“An important purpose of federal immigration and naturalization laws is to ensure the safety and security of the United States,” said U.S. Attorney McSwain. “This defendant flouted our laws, preyed upon children, and lied about all of it to gain entry into our country unlawfully. This sentence confirms that my Office will continue to hold every person accountable who violates federal law – no matter who you are or where you come from.”
“Homeland Security Investigations will aggressively pursue cases where individuals unlawfully obtain immigration benefits, especially in a circumstance like this one, which involves a child predator,” said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia. “We will continue to work tirelessly with our law enforcement counterparts to investigate criminals who manipulate and exploit the immigration system and see that they are brought to justice.”
The case was investigated by Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Couple Sentenced to Serve Lengthy Term in Federal Prison in Methamphetamine Conspiracy and Firearm ChargesRead the Press Release
GREENEVILLE, Tenn. – On May 20, 2019, Greg Fessell, 47, and his wife Patricia Sciaca [Fessell], 46, of Kingsport, Tennessee, were sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, for their roles in a conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense. Greg Fessel was sentence to serve 223 months in federal prison. Patricia Sciaca [Fessell] was sentenced to serve 206 months in federal prison. The couple was also ordered to each pay a $340,000 money judgment, which represented the proceeds of their sale of methamphetamine.
In February 2018, agents preparing to execute a search warrant at the Fessell residence performed traffic stops on Fessell and Sciacca as they left their residence in separate vehicles. A search of the vehicles and residence resulted in the recovery of over 500 grams of methamphetamine, 55 firearms, and $39,597 cash. In November 2018, both pleaded guilty for conspiracy to distribute methamphetamine and possession of a firearm.
The investigation into the Fessell’s drug trafficking activity was part of a broader investigation conducted by partnering local, state, and federal law enforcement agencies tasked with combatting methamphetamine distribution in the region. Law enforcement agencies participating in the investigation included the Sullivan County Sheriff’s Office, Kingsport Police Department, Tennessee’s 2nd Judicial Drug Task Force, Johnson City Police Department, Washington County Sheriff’s Office, Tennessee Highway Patrol, Tennessee Bureau of Investigation, Drug Enforcement Administration, and U.S. Homeland Security Investigations. Assistant U.S. Attorney Christian Lampe represented the United States in court proceedings.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Convicted Felon with Ammunition Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Altavious Demon Jackson, 34, of Atlanta, Georgia, was sentenced in federal court to a term of 87 months imprisonment for his illegal possession of ammunition. Jackson, a previously convicted felon, may not legally possession firearms or ammunition under federal law. He pled guilty to the charge of being a convicted felon in possession of ammunition in January of 2019. United States District Court Judge Callie V. S. Granade imposed the sentence following a hearing conducted on May 22, 2019.
The judge ordered that Jackson serve 87 months imprisonment. When he is released from custody, Jackson will serve a total of 3 years on supervised release. He was also ordered to pay $100 in special mandatory assessments, but no fine was imposed.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Cleveland man already in federal custody for drug trafficking charged for attempting to possess more than 300 grams of fentanyl, as well as escapeRead the Press Release
A Cleveland man already in federal custody for drug trafficking was charged with attempting to possess more than 300 grams of fentanyl, as well escape.
Rayshawn Ligon escaped from Oriana House Residential Reentry Center on March 2, 2019, while in the custody of Federal Correctional Institution McKean, according to the indictment.
On March 1, Ligon attempted to possess with the intent to distribute 331 grams of fentanyl, according to the indictment.
According to court documents: agents from the U.S. Postal Inspection Service intercepted a package addressed to a home on East 78th Street in Cleveland that contained blue pills that tested positive for fentanyl. Investigators replaced the pills with inert ones and inserted a tracking device into the package before trying to make a controlled delivery.
The package was delivered to the East 78th Street address on March 1. Ligon arrived at the house in a Jeep, then left minutes later with the package. Ligon drove to a residence on East 246th Street in Euclid, went inside with the package, then walked outside with the opened package.
Investigators attempted to stop Ligon. He drove away at a high rate of speed, threw the package out the window (later recovered), apparently lost control of the Jeep and ran over a real estate sign, and then ran away. Police had the vehicle towed and recovered Ligon’s driver’s license and birth certificate from the Jeep, according to court documents.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case was investigated by the U.S. Postal Inspection Service and Drug Enforcement Administration. It is being prosecuted by Assistant U.S. Attorneys Patrick Burke and Danielle Angeli.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Chinese National Pleads Guilty to Trafficking Counterfeit IPhones from Hong KongRead the Press Release
PORTLAND, Ore.—Quan Jiang, 30, a Chinese national and former engineering student at Linn Benton Community College in Albany, Oregon, pleaded guilty today to one count of trafficking in counterfeit goods, specifically fake and altered Apple iPhones. Jiang would import the counterfeit devices from Hong Kong and submit them to Apple in exchange for genuine warranty replacement phones to be sold on the Chinese market.
“Counterfeiting undermines commerce and inevitably leads to increased prices for goods enjoyed by millions of consumers,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The investigators who worked this case and others like it provide an invaluable public service to American companies, entrepreneurs, and consumers alike in preserving a competitive market free of criminal interference.”
“Individuals who deal in counterfeit goods would have you believe that these are victimless crimes,” said Brad Bench, Special Agent in Charge of Homeland Security Investigations (HSI) Seattle. “Do not be fooled, they’re not. Not only do they hurt the economy and legitimate businesses, but they also impact consumers directly. HSI and our law enforcement partners will continue to fight counterfeiting across all industries.”
According to court documents, between January 1, 2016, and February 1, 2018, Jiang would regularly receive packages containing between 20 and 30 counterfeit iPhones from associates in Hong Kong. Using various assumed names, Jiang would submit each iPhone to Apple individually in person or online for a warranty replacement; he would then ship the genuine replacement devices he received back to China for resale. In exchange for his service, Jiang’s associate would pay Jiang’s mother, also residing in China, who would in turn deposit the money into Jiang’s bank account.
Jiang later admitted to investigators that he knew the devices were counterfeit and that it was illegal to submit them to Apple as genuine products still under warranty. In just over two years, Jiang imported more than 2,000 inoperable counterfeit iPhones. He ultimately obtained approximately 1,500 genuine replacement iPhones, each with an approximate resale value of $600.
Jiang faces a maximum sentence of ten years in prison, a $2,000,000 fine or twice his proceeds, whichever is greater, and three years of supervised release. He will be sentenced on August 28, 2019 before U.S. District Court Judge Anna J. Brown.
As part of the plea agreement, Jiang has agreed to pay $200,000 in restitution to Apple.
This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) and prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Chinese National Charged with Importing AnaloguesRead the Press Release
NEWARK, N.J. – A Chinese national who has held high-level executive positions at chemical and pharmaceutical companies in China has been arrested and charged with drug and money laundering offenses, including the importation of fentanyl analogues, U.S. Attorney Craig Carpenito announced today.
Hao Qin, a/k/a “John Chin,” 32, is charged by complaint with one count of conspiracy to import controlled substance analogues and one count of conspiracy to commit international money laundering. The defendant was arrested late yesterday after landing at Los Angeles International Airport and will have his initial appearance today before U.S. District Judge Jean Rosenbluth in the Central District of California.
According to documents filed in this case and statements made in court:
Agents of the Drug Enforcement Administration received information from a cooperating witness that Qin and others were involved in the distribution of controlled substances and controlled substance analogues used to manufacture synthetic cannabinoids for human consumption. They were also aware that Qin and others were laundering their illegal proceeds.
During the time of the conspiracy, Qin was a high-level executive for pharmaceutical and chemical companies. He was allegedly responsible for importing more than 500 kilograms of controlled substance analogues into the United States. Among the substances imported by Qin and his conspirators through Qin’s chemical business were furanyl fentanyl and 4-FIBF, two potent analogues of the opioid drug fentanyl.
Qin is also charged with laundering the proceeds of his international drug business, including accepting wire payments designed to pay off a drug debt of more than $500,000 incurred by one of Chin’s former clients in the United States.
The count of conspiracy to import controlled substance analogues is punishable by a maximum of 20 years in prison and a fine of $1 million, and the count of conspiracy to commit international money laundering is punishable by a maximum of 20 years in prison and a fine of $500,000.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.U.S. Attorney Carpenito credited special agents with the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to the charges. The investigation was supported and coordinated by the Department of Justice’s multi-agency Special Operations Division.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Office’s Cyber Crimes Unit, Assistant U.S. Attorneys Sammi Malek of the Office’s Economic Crimes Unit, and Erica Liu, Chief of the Office’s Opioids Unit.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Buffalo Man Going to Jail for Nearly 20 Years for Distributing Fentanyl, Final Defendant to Be Sentenced in Fentanyl ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Calvin Elston, Jr., 41, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 400 grams or more of fentanyl, was sentenced to serve 235 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that between July 2013 and May 2015, the defendant conspired with co-defendants Brandon Coburn, Jennifer L. Courton, Rodney Courton, John Davis, Samuel Nappo, Tashaira Vazquez, Terrance Williams, Johanna Sanchez-Rodriquez, Luis Diaz, and others, to distribute fentanyl, oxymorphone, oxycodone, and amphetamines, Schedule II controlled substances.
Over the course of the conspiracy, Elston obtained prescriptions in his own name, and in the names of others, from co-defendant Brandon Coburn, a former nurse practitioner. Neither he, nor the others, ever saw Coburn for treatment. The defendant and co-defendant, Jennifer L. Courton, would then recruit various individuals who would agree to go to pharmacies to submit prescriptions. These individuals, including Rodney Courton, John Davis, Jessica Howard, Samuel Nappo, Tashaira Vazquez, Terrance Williams, Johanna Sanchez-Rodriquez, Luis Diaz, and others, would be paid money for their services. Coburn would also be paid for writing each prescription.
In total, from July 2013 to May 2015, 253 prescriptions were issued by co-defendant Coburn without any legitimate medical purpose.
A total of 10 defendants have been convicted and sentenced in this case:
• Brandon Coburn-108 months
• Jennifer Courton-180 months
• Rodney Courton-57 months
• John Davis-32 months
• Samuel Nappo-30 months
• Tashaira Vazquez-24 months
• Terrance Williams-20 months
• Johanna Sanchez Rodriquez-18 months
• Luis Diaz-24 monthsThe sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Ray Donovan, Special Agent-in-Charge, New York Field Division.
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Bronx Man Sentenced in Manhattan Federal Court to 70 Months in Prison for Building Improvised Explosive DeviceRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that CHRISTIAN TORO was sentenced today by United States District Judge Richard M. Berman to 70 months in prison for stockpiling explosive materials and manufacture of a destructive device. TORO previously pled guilty before Judge Berman. Tyler Toro, TORO’s co-defendant and brother, who also pled guilty, is scheduled to be sentenced on May 29, 2019.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Today’s sentence serves as a message that building and stockpiling destructive devices are grave offenses in and of themselves. Thanks to the outstanding work of the Joint Terrorism Task Force in eliminating this destructive threat in its nascent stages, Christian Toro and his brother were apprehended before they could carry out any attack with the device they were building. Christian Toro has nevertheless received a substantial sentence for seriously endangering the public (including minor children) and inspiring fear throughout his community with his conduct.”
According to the allegations in the Complaint, the Indictment, and statements made during court proceedings:
Between approximately October 2017 and February 2018, CHRISTIAN TORO and Tyler Toro conspired to build and possess a destructive device at their residence in the Bronx, New York (the “Residence”). CHRISTIAN TORO, a former teacher at a high school in Harlem, New York (the “School”), paid students from the School for their assistance in manufacturing the destructive device, giving them approximately $50 per hour in return for the students’ work dismantling fireworks and storing the explosive powder contained within those fireworks in containers. TORO encouraged one of those students to call in a bomb threat to the School in December 2017. TORO also had on his School laptop a copy of a book that provided instructions for, among other things, manufacturing explosive devices.
On February 15, 2018, law enforcement agents searched the Residence pursuant to a judicially authorized search warrant. In a bedroom shared by TORO and Tyler Toro, law enforcement agents recovered the components for building an improvised explosive device and other dangerous substances, including: (i) a glass jar containing low explosive powder; (ii) a strip of magnesium metal; (iii) approximately 20 pounds of iron oxide; (iv) approximately five pounds of aluminum powder; (v) a mixture of iron oxide and aluminum powder, the key ingredients for thermite (used in incendiary bombs); (vi) approximately five pounds of potassium nitrate; (vii) a cardboard box containing firecrackers; and (viii) metal spheres and C02 cartridges, which can be used as fragmentation for a bomb. On the Residence’s fire escape, agents also found a jar of improvised napalm, consisting of gasoline and Styrofoam.
Also in the Residence, law enforcement agents found a handwritten diary labeled with Tyler Toro’s name, which stated, among other things, “WE ARE TWIN TOROS STRIKE US NOW, WE WILL RETURN WITH NANO THERMITE” and “I AM HERE 100%, LIVING, BUYING WEAPONS. WHATEVER WE NEED.” Agents also recovered a page inside a notebook found in the Residence labeled “Operation Flash,” with a ledger appearing to delineate the hours worked and payment owed to one of the School’s students for that student’s work on the destructive device.
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In addition to his prison sentence, CHRISTIAN TORO, 28, was sentenced to three years of supervised release.
Mr. Berman praised the excellent work of the Federal Bureau of Investigation’s (“FBI”) New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Elizabeth A. Hanft is in charge of the prosecution.
Boston Man Charged with Fentanyl TraffickingRead the Press Release
BOSTON – A Boston man was charged today in federal court in Boston in connection with trafficking fentanyl.
Anthony Smallwood, 28, was arrested and charged by criminal complaint with one count of distribution of, and possession with intent to distribute, more than 40 grams of fentanyl. Smallwood appeared in federal court in Boston today and was remanded to custody pending a detention and probable cause hearing.
According to court documents, between March and May 2019, Smallwood engaged in five separate drug sales of suspected fentanyl and crack cocaine to a witness cooperating with the government.
The charge of distribution of, and possession with intent to distribute 40 grams or more of fentanyl provides for a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years of supervised release, and a fine of up to $5 million. 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Boston Police Commissioner William Gross made the announcement today. Valuable assistance was provided by members of the Organized Crime Drug Enforcement Task Force Strike Force. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Berkeley County man admits to fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Nicholas Wayne Deminds, of Martinsburg, West Virginia, has admitted to distributing fentanyl, United States Attorney Bill Powell announced.
Deminds, age 30, pled guilty to one count of “Possession with Intent to Distribute Fentanyl.” Deminds admitted to distributing more than 25 grams of fentanyl in December 2018 in Berkeley County.Deminds also agreed to forfeit a box of 20 rounds of ammunition and $4,523.00.
Deminds faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Baltimore Man Convicted by Federal Jury on Drug ChargesRead the Press Release
Baltimore, Maryland – A federal jury convicted Delroy Williams, Jr. age 32, of Baltimore, Maryland, for a conspiracy to distribute five kilograms or more of cocaine, and for possession with intent to distribute cocaine and marijuana. The jury returned its verdict late on May 20, 2019. Williams fled and was a fugitive from justice prior to his original trial date in November 2018. Williams was arrested on January 11, 2019, and has been detained since that time.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Anne Arundel County Police Chief Tim Altomare.
According to the testimony presented at his five-day trial, from at least October 2016 through December 12, 2016, Williams distributed cocaine and marijuana in the Baltimore area. On the evening of December 12, 2016, Williams ran into an associate at a nightclub in Baltimore County. Believing that the associate owed him money, Williams assaulted, robbed, and shot at the individual before ramming the victim’s car and then fleeing the scene. Realizing that the associate knew where Williams lived, Williams took his drugs from his residence and took them to his girlfriend’s home in Glen Burnie, Maryland.
Law enforcement executed a search warrant at the Glen Burnie residence the next day and recovered almost five kilos of cocaine, several pounds of marijuana, and two guns from the house. Witnesses testified that several more pounds of marijuana, more than $213,000 in cash, scales, and pistol ammunition were recovered from Williams’s truck.
Williams now faces a mandatory minimum sentence of 10 years in prison and a maximum of life in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for August 20, 209 at 11:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the DEA, the Baltimore County Police Department and the Anne Arundel County Police Department for their work in the investigation, and thanked the FBI, the ATF, and the U.S. Marshals Service for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Zachary B. Stendig and John W. Sippel, Jr. who are prosecuting the case.
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Attorney General William P. Barr Joins President Donald J. Trump in Awarding the Medal of Valor to 14 Public Safety OfficersRead the Press Release
President Donald J. Trump and Attorney General William P. Barr today awarded the Public Safety Officer Medal of Valor to 14 recipients – two posthumously – who exhibited exceptional courage in saving and protecting others and whose heroic actions went above and beyond the call of duty. The Medal of Valor, authorized by the Public Safety Medal of Valor Act of 2001, is awarded by the President to public safety officers nominated by the directors of their employing agencies and recommended by the Medal of Valor Review Board. The Department of Justice’s Bureau of Justice Assistance oversees the Medal of Valor.
“The work that first responders do every day is heroic, and each one of them deserves our gratitude,” said Attorney General William P. Barr. “Even among these selfless public servants, some have distinguished themselves through exceptional acts of valor. Today, the men and women of the Department of Justice are proud to join with President Trump in honoring 14 first responders who did just that, including two who gave their lives in the line of duty. These brave Americans exemplify what serving as a first responder is all about: selflessness, poise, and sacrifice.”
Today’s recipients of the Medal of Valor include the following officers:
- Fallen Officer Sergeant Verdell Smith Sr., City of Memphis Police Department, Tennessee, for giving his own life to save the lives of civilians in the path of a driver speeding recklessly through a crowd
- Fallen Officer Brent Thompson, Dallas Area Rapid Transit Police Department, Texas, for giving his life while engaging a mass shooter at a protest march and saving the lives of countless civilians and fellow officers
- Lieutenant Xavier Torres, Retired; Sergeant Seth Chapman; Sergeant Terry Smith Jr., Retired; Sergeant Thomas Avila III; and Sergeant Rocky Wenrick; Corporal Andrew Rodriguez Jr., Retired; and Senior Officer Carlos Plascencia, Azusa Police Department, California; and Detective Manuel Campos, Irwindale Police Department, California, for placing themselves in mortal danger and saving the lives of civilians and fellow officers during a mass shooting incident on Election Day, 2016
- University Law Enforcement Officer Alan Horujko, Ohio State University Police Division, for risking his life to save the lives of several civilians from a driver who sped through a crowd and then emerged from his car to attack pedestrians with a knife
- Senior Trooper Nicholas Cederberg, Oregon State Police, for placing himself in the line of fire and suffering life-threatening injuries in order to bring a murderer to justice
- Fire Captain Dustin Moore and Firefighter Paramedic Andrew Freisner, Lenexa Fire Department, Kansas, for risking their lives to rescue a family from a burning apartment building
“These 14 recipients represent a proud tradition of service, one that has been ennobled by their valiant actions,” said Office of Justice Programs Principal Deputy Assistant Attorney General Matt M. Dummermuth, whose office oversees BJA. “We stand in awe of these extraordinary public servants and are inspired by their courageous example.”
“Public safety officers report to work each day knowing full well the risks inherent in the jobs they undertake, yet they do not shrink from their duty,” said BJA Director Jon Adler. “By standing tall in the face of danger, these brave men and women have done their communities an immeasurable service and they have done their profession tremendous credit.”
Including today’s awardees, a total of 139 medals have been presented since the first recipients were honored in 2003. More information about the award and today’s recipients, the Medal of Valor Review Board members and the nomination process can be found here: www.ojp.gov/medalofvalor.
Arkansas Man Sentenced for Attempted Armed Carjacking in the Stadium West GarageRead the Press Release
St. Louis, MO – Christopher White, 39, of Arkansas, was sentenced to 168 months in prison for attempted carjacking and brandishing a firearm during a federal crime of violence. He appeared in federal court today before U.S. District Judge Ronnie L. White.
According to court documents, on June 25, 2016, officers of the St. Louis Metropolitan Police Department responded to the Stadium West Garage located at 800 Clark Avenue for a robbery. Upon arrival, officers spoke with the victims. The victims advised that, after entering their vehicle, two men exited a Ford F-150 that was parked to the right of their vehicle. Christopher White approached the driver's side and pointed a small revolver at one of the victims, demanded his keys, and ordered him out of the vehicle and onto the ground. During his guilty plea, White admitted that he intended to cause death or serious bodily injury, if necessary, to steal the victim’s vehicle during the carjacking.
Co-defendant Michael Corey Williams, Jr. approached the other victim on the passenger side, demanded her purse, and ordered her to the ground. After White was unable to operate the vehicle, Williams re-entered the Ford F-150 and fled the scene. White fled on foot.
Officers eventually located the Ford F-150 unoccupied. It had been stolen earlier in West Memphis, Arkansas. Williams’ fingerprints were located on the driver's door of the Ford F-150, and Williams’ and White's DNA were located on various items found inside the truck. .
Williams, Jr. was sentenced to 123 months in prison earlier this month.
This case is being investigated by the Federal Bureau of Investigation with the assistance of the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Sayler Fleming is handling the case for the U.S. Attorney’s Office.
Alleged Member of Car Theft Ring Who Sold Stolen Firearms Charged with Federal OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kelly D. Brady, Special Agent in Charge, ATF Boston Field Division, today announced that RAY QUAN SANTOS, 21, of Hartford, has been charged by federal criminal complaint with conspiracy and firearms offenses.
As alleged in the criminal complaint, this matter stems from an investigation of motor vehicle thefts and motor vehicle break-ins in and around Hartford County. The property stolen from vehicles includes firearms, ammunition and firearm-related items. The investigation revealed that Santos and others stole firearms and other items from vehicles, including vehicles that were parked outside of residences in Newington and Ellington, and then sold the firearms to other individuals.
Santos, who has been incarcerated in state custody on related charges, appeared today before U.S. Magistrate Robert A. Richardson in Hartford and remains detained.
The complaint charges Santos with conspiring to a commit a federal felony, an offense that carries a maximum term of imprisonment of five years, and possession of a stolen firearm, an offense that carries a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Connecticut State Police, and the Hartford, Newington and Windsor Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Aliens Indicted for Unlawful Possession of Firearms and Failure to Comply with Terms of Supervised Release and Illegal Reentry and Alien in Possession of AmmunitionRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned a Superseding Indictment charging ALI KHALESEH DEHGHAN, age 35, from Wake County, with two counts of alien in possession of a firearm and failure to comply with terms of supervised release. The grand jury also returned an indictment charging LUIS JAVIER GORTAREZ-JIMENEZ, age 24, of Mexico, with Illegal Reentry and Alien in Possession of Ammunition.
The Superseding Indictment alleges that DEHGHAN, failed to comply with terms of release under supervision, specifically by committing other criminal acts, including but not limited to his arrest in Wake County for Carrying a Concealed Firearm.
As alleged in the charging document, DEHGHAN, an alien illegally and unlawfully in the United States, did possess a firearm in February 2017, and again on February 2019, in and affecting commerce.
If convicted, DEHGHAN would face maximum penalties of twenty-one years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal reentry and alien in possession of ammunition, GORTAREZ-JIMENEZ, previously deported and found in Wake County, would face maximum penalties of twelve years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement Removal Operations and Homeland Security Investigations.
26 Individuals Charged with Drug Trafficking in Puerto Rico Project Safe Neighborhoods Enforcement EffortRead the Press Release
SAN JUAN, Puerto Rico – On May 20, 2019, a federal grand jury in the District of Puerto Rico returned a seven-count indictment charging 26 defendants with conspiracy to distribute controlled substances and with firearms violations, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation and the Puerto Rico Police Department (PRPD), Caguas Strike Force, are in charge of the investigation with the collaboration of the Puerto Rico Police Bureau, Department of Public Safety. This case is part of the U.S. Department of Justice’s Project Safe Neighborhoods initiative.
The indictment alleges that beginning in or about the year 2013, the organization distributed crack, heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real properties comprising the Lorenzana Public Housing Project and Roosevelt Ward located in the Municipality of San Lorenzo, Puerto Rico, all for financial gain and profit.
The 26 defendants acted in different roles in order to further the goals of their organization, to wit: leaders, drug point owners, runners, enforcers, sellers, facilitators, and lookouts. Twelve defendants are facing one charge of using and carrying firearms during and in relation to drug trafficking.
As part of the conspiracy members of the drug trafficking organization used force, violence and intimidation in order to maintain control of the drug trafficking operations, armed conspirators provided security to the drug point, and lookouts conducted surveillance at strategic locations within the public housing project to attempt to detect the presence of law enforcement personnel and/or members of rival gangs.
The defendants indicted and arrested today are: Juan Rafael Pedro-Vidal, a.k.a. “Bebe/Fito/Jincho”; Juan Luis Pedro-Vidal, a.k.a. “Pucho/Gordo/Barba”; Kelvyn Iván Borges-Vázquez, a.k.a. “Keke”; Christian De Jesús-Figueroa, a.k.a. “Puto”; Alexander Sánchez-Sánchez, a.k.a. “Alex Fo/Gárgola”; José René Ríos-Fuentes; Henry Calderón-Marín, a.k.a. “Jincho/Jinchito”; Alexander Cruz-Guzmán, a.k.a. “Pito”; Nelson Torres-Delgado, a.k.a. “El Burro”; Luis Manuel Montñez-Ramos, a.k.a. “Wiso/Gordo”; Victor Manuel Moyett-Barbosa, a.k.a. “Victorino”; Radames Torres-Díaz; Miguel Ángel Rojas-Tamayo, a.k.a. “Mikey”; José Montañez-Ramos, a.k.a. “Chelo”; Samuel Enrique Rolón-Malavé, a.k.a. “Sammy”; José Martín Cruz-Guzmán, a.k.a. “Fresita”; Juan Carlos Pérez-Colón, a.k.a. “Budda”; Ángel Omar García-Córdova, a.k.a. “Kakito”; Rafael Enrique Marcano-Rodríguez; José Edgardo Cruz-Piñeiro, a.k.a. “Coco”; José Manuel Claudio-Figueroa, a.k.a. “Scorpion/Viejo”; Raúl Soto-Ramos, a.k.a. “Bobo”; William Rolón-Gómez, a.k.a. “Mascabi”; Emmanuel Neris-Rivera, a.k.a. “Chavito”; Ivelis Méndez-Gómez, a.k.a. “Ivy”; and Jostheline Figueroa, a.k.a. “Ñeca”.
“This indictment and the arrests this morning are a significant victory in our efforts to combat drug trafficking and violent crime,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue to conduct investigations with our counterparts to dismantle these criminal organizations and to send a clear message that drugs, firearms, and violence will not be tolerated in our neighborhoods.”
“Today’s operation involved more than 400 law enforcement personnel, demonstrating that we and our partners will invest whatever resources are necessary when it comes to public safety. The operation succeeded thanks in large part to the efforts of the Puerto Rico Police Department, Strike Force Caguas, Puerto Rico Department of Corrections, San Juan Police Department, Hacienda, Bureau of Alcohol, Tobacco, and Firearms, and Homeland Security Investigations; and as always, could not have gone forward without the tremendous work of the United States Attorney’s Office in preparing this case for prosecution,” stated Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Division.
Today’s arrests are part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Assistant U.S. Attorneys Jenifer Y. Hernández-Vega and Jonathan Gottfried are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a federal program designed to bring 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 in 2017, as part of the Department’s renewed focus on targeting each community’s most violent criminals. All U.S. Attorney’s Offices work in partnership with federal, state, and local law enforcement, as well as the local civilian community, to develop effective, targeted strategies to reduce violent crime. This case is a product of that collaborative effort.
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21 May 2019
York Man Sentenced to Two Years for Making Interstate Threat and Identity TheftRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Austin Santoro, 23, of York, Maine, was sentenced today in U.S. District Court by Judge D. Brock Hornby to two years in prison and three years of supervised release for transmitting a threatening interstate communication and identity theft. The defendant pleaded guilty on December 17, 2018.
According to court documents, in January of 2018, the defendant sent an email to employees of the Portsmouth, New Hampshire Police Department at their departmental email addresses threatening to sexually assault them at gunpoint. The defendant used an email “spoofing” service to make it appear that the email had been sent by the police chief.
On the same day, the defendant sent an email to employees of York County Community College at their work addresses threatening to sexually assault them at gunpoint. The defendant used the same spoofing service to make it appear that the email had been sent by a college employee.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Wood County Man Pleads Guilty to Federal Gun ChargeRead the Press Release
CHARLESTON, W.Va. – A Wood County man who possessed firearms after being involuntarily committed to a mental hospital pled guilty to a federal gun charge, announced United States Attorney Mike Stuart. Benjamin Lee Parsons, 31, of Mineral Wells, entered a guilty plea to illegal possession of a firearm. Stuart commended the investigative efforts of the Wood County Sheriff’s Department, the Parkersburg Narcotics and Violent Crimes Task Force (PNTF), the Federal Bureau of Investigation (FBI), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
“Excellent work by law enforcement,” said United States Attorney Mike Stuart. “These guns were definitely in the wrong hands.”
On October 31, 2018, investigators executed a federal search warrant on a wooded property in Mineral Wells where Parsons had been living in a tent. The search warrant was the culmination of an investigation of Parsons related to his acquisition of a high-capacity semiautomatic FNH model M249S 5.56 caliber assault rifle. The rifle is the semiautomatic civilian version of the Squad Assault Weapon (SAW) used by the United States military. Federal and local police learned that Parsons had obtained the weapon from another individual who told investigators that he had purchased it for Parsons from a licensed firearms dealer in Marietta, Ohio. When investigators executed the search warrant, they recovered the FNH assault rifle and a Molot 5.45x39mm rifle from a locked case Parsons kept at his campsite on the property. The FNH was loaded with approximately 190 rounds of belted ammunition in a drum magazine. Investigators also located and seized 12 magazines for the Molot loaded with 164 rounds of ammunition, 32 additional unloaded magazines, and approximately 640 rounds of 9mm and other rifle ammunition.
Parsons was prohibited from possessing the firearms and ammunition as a result of having been involuntarily committed to a mental hospital in February 2017 by Wood County Circuit Judge Jason Wharton. Parsons faces up to 10 years in federal prison when he is sentenced on August 27, 2019.
Assistant United States Attorney Joshua C. Hanks is handling the prosecution. Senior United States District David A. Faber presided over the plea hearing.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Wholesaler Charged in Conspiracy to Manufacture and Sell Counterfeit Clothing and Other Goods to US Military and GovernmentRead the Press Release
PROVIDENCE – A criminal information filed today in U.S. District Court in Providence, R.I., in an ongoing investigation, charges a Brooklyn, N.Y., clothing and goods wholesaler with conspiracy to commit wire fraud and trafficking in counterfeit goods in connection with the alleged sale of more than twenty million dollars worth of Chinese-made counterfeit goods to the United States military and other government purchasers, as well as to other companies that supply the U.S. Government.
It is alleged in the information that Ramin Kohanbash, 49, working with other members of the conspiracy, provided samples of actual military uniforms and gear to manufacturers in China to replicate. It is also alleged that Kohanbash and his co-conspirators provided, reviewed, and approved photographs, descriptions, and samples of tags and labels to be attached to the knockoff products, so that the counterfeit versions appeared legitimate. In many instances, this process allegedly involved copying the trademarks and brand names of actual U.S.-made products and adding them to the foreign counterfeit versions.
After being manufactured in China, it is alleged that the counterfeit goods were shipped to Kohanbash and sold to other wholesalers who ultimately marketed and sold them to military and government buyers off as genuine, American-made products.
Under two U.S. laws known as The Berry Amendment and the Trade Agreements Act (“TAA”), goods sold to the military and certain other government buyers are required to be manufactured in the United States and certain other designated countries; China is not one of those countries. In order to sell the counterfeit goods, it is alleged that Kohanbash provided wholesalers who did business with the government with false certification letters claiming that the goods were made in the U.S., and therefore complied with Berry Amendment. In other instances, it is alleged that Kohanbash falsely represented that the goods met TAA requirements.
The information alleges that, among other items Kohanbash and his co-conspirators arranged to counterfeit, were military parkas used by U.S. Air Force personnel stationed in Afghanistan. These parkas are made with a fabric known as Multicam®, which incorporates specialized near-infrared (“NIR”) management technology designed to make the wearer more difficult to detect with equipment such as night-vision goggles. According to the information, two hundred of these counterfeit Multicam® parkas, lacking the critical NIR management technology, were sold to a U.S. Air Force Base Supply Center. Other items carried labels that allegedly made explicit, and false, representations about the product’s safety. In one case, labels on counterfeit hoods intended for military and law enforcement personnel stated that the items were “permanently flame resistant,” and that they met a specific industry standard for flame-resistant attire. In reality, the counterfeit hoods were not flame resistant.
The filing of an information in U.S. District Court in Providence, R.I., in this matter is announced by United States Attorney for the District of Rhode Island Aaron L. Weisman; Special Agent-in-Charge Leigh-Alistair Barzey, Defense Criminal Investigative Service, Northeast Field Office; Special Agent in Charge Luis A. Hernandez, General Services Administration Office of Inspector General, New England Regional Investigations Office; Resident Agent in Charge Michael D. Conner, Boston Fraud Resident Agency, US Army Criminal Investigation Command; Jason T. Hein, Special Agent in Charge, Air Force Office of Special Investigations, Office of Procurement Fraud Investigation, Detachment; and Homeland Security Investigations Newark, NJ, Special Agent in Charge Brian A. Michael.
Kohanbash is scheduled to appear before United States Magistrate Judge Patricia A. Sullivan on June 12, 2019, for an initial appearance on the charges contained in the information. An information is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Conspiracy to commit wire fraud is punishable by statutory penalties of up to 5 years in federal prison, 3 years supervised release, and a fine of up to $250,000; Trafficking in counterfeit goods is punishable by statutory penalties of up to 10 years in federal prison, 3 years supervised release, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Zachary A. Cunha.
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West Virginia Physician Pleads Guilty to Drug ChargeRead the Press Release
A Morgantown, West Virginia, physician pleaded guilty to obtaining controlled substances by fraudulently writing prescriptions using colleagues’ Drug Enforcement Administration (DEA) numbers and presenting stolen driver’s licenses to pick up fraudulently prescribed controlled substances from Morgantown area pharmacies for his personal use, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Bill Powell of the Northern District of West Virginia.
Chad Poage, D.O., 35, pleaded guilty to one count of acquiring or obtaining possession of a controlled substance by misrepresentation, fraud, forgery, deception or subterfuge before U.S. Magistrate Judge Michael John Aloi of the Northern District of West Virginia.
Poage was an orthopedic surgeon who worked in a practice with locations in Morgantown and Fairmont, West Virginia. As part of his guilty plea, he admitted that, from November 2015 to March 2018, he wrote 30 fraudulent prescriptions for a total of approximately 1,330 50-milligram tablets of Tramadol, 420 5-milligram tablets of Diazepam, and 50 30-milligram tablets of acetaminophen-codeine no. 3, all for his own use. Poage further admitted that on each of the 30 prescriptions, he either wrote colleagues’ DEA registration numbers without their authorization or wrote the prescription out to a patient knowing that he would pick up the prescribed medication for his own use. Poage admitted that on multiple occasions, he presented stolen driver’s licenses when picking up fraudulent prescriptions from pharmacies.
The DEA, the U.S. Department of Health and Human Services Office of Inspector General and West Virginia State Police investigated the case, which was brought as part of the Appalachian Regional Prescription Opioid (ARPO) Strike Force, under supervision by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Northern District of West Virginia. Trial Attorney Patrick Mott of the Fraud Section and Assistant U.S. Attorney Sarah Wagner of the Northern District of West Virginia are prosecuting the case.
The ARPO Strike Force is made up of prosecutors and data analysts with the Health Care Fraud Unit of the Criminal Division’s Fraud Section, prosecutors with the U.S. Attorney’s Offices in the region and special agents with the FBI, HHS-OIG and DEA. Since its inception in October 2018, the ARPO Strike Force has charged 60 defendants in 11 districts. The Health Care Fraud Unit, in general, maintains 14 strike forces operating in 23 districts, and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Washington, PA Felon Sentenced to 7 Years in Prison for Possessing a Loaded, Stolen Pistol and AmmunitionRead the Press Release
PITTSBURGH – AWashington County resident was sentenced today in federal court to seven years' (84 months’) imprisonment followed by three years’ supervised release on his conviction for violating the federal firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on James Roosevelt Leach, 47, of Washington, Pennsylvania, for the crime of possession of a firearm and ammunition by a convicted felon.
According to information presented to the Court, on December 14, 2016, the Pennsylvania State Police performed a traffic stop on a vehicle near the City of Washington, Washington County (Pennsylvania) at which time troopers found Leach in possession of a loaded, stolen 9mm caliber Ruger pistol, and a box of 9mm ammunition. Federal law prohibits Leach, a felon previously convicted in the Court of Common Pleas of Washington County, Pennsylvania, of crimes including rape, robbery, and aggravated assault, from possessing a firearm or ammunition.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
This case was brought as part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Brady commended the Pennsylvania State Police, the Washington County District Attorney’s Office, and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for the investigation leading to the successful prosecution of this case.
Violent Pimp Sentenced to 23 Years in Prison for Sex TraffickingRead the Press Release
A Seattle area man with a prior history of promoting prostitution was sentenced today in U.S. District Court in Seattle to 276 months in prison and 15 years of supervised release for five federal felonies, including sex trafficking of a minor through force, fraud, and coercion, announced U.S. Attorney Brian T. Moran. AUBREY TAYLOR, 32, also known as “Uno,” was convicted March 6, 2019, following an eight-day jury trial. During the trial, multiple victims testified about how TAYLOR used threats, violence, sexual assault, and manipulation to control them and force them to engage in commercial sex acts in cities in Washington, Idaho, and Nevada and then give him the money they earned. At the sentencing hearing, U.S. District Judge Robert S. Lasnik said that Taylor “is intelligent and can be charming, and this, combined with [his] use of violence and threats gave [him] effective control over vulnerable people. But today is the judgment day.”
“This sentence should send a strong message that those who use physical and emotional coercion to force and manipulate victims into sexual slavery will be held accountable for their crimes,” said U.S. Attorney Moran. “This defendant put these victims in danger every day he used them – all to satisfy his own greed.”
According to records filed in the case and testimony at trial, TAYLOR took one seventeen-year-old young victim to Wenatchee in October 2014 and sexually assaulted her and forced her into prostitution. Three other victims testified that TAYLOR controlled them with mental and physical abuse or promises of love and a better life. The women were transported as far away as Las Vegas to engage in commercial sex acts. TAYLOR controlled one victim by rationing doses of heroin and using her addiction to keep her working as a prostitute. TAYLOR directed other victims to get tattoos of his name and nicknames as a form of branding and to demonstrate his control over them.
TAYLOR violently assaulted the women he controlled on multiple occasions. When law enforcement or medical professionals tried to get the victims to cooperate with law enforcement, they expressed their fear of TAYLOR. Text messages seized in the case reveal TAYLOR’s attempts to recruit numerous additional women and his use of threats and violence.
“This case demonstrates the great work that can be accomplished when agencies work together,” said Special Agent in Charge Raymond Duda of the FBI’s Seattle Field Office. “The task force model and partnerships across the state resulted in the incarceration of a violent predator. Taking this subject off the street significantly contributes to keeping the community safe.”
“Human trafficking is a serious violent crime that destroys lives and damages communities. We are deeply proud of the survivors who came forward and testified bravely in this case and we are equally proud of Kent Police Department’s investigators who worked tirelessly to put an end to this cycle of exploitation and abuse. It is our responsibility to hold traffickers accountable, and we will continue the fight to end this form of modern-day slavery,” said Kent Police Commander Andy Grove.
The case was investigated by the FBI, the City of Kent Police Department, and the Snohomish County Sheriff’s Office—working together on the North Sound Child Exploitation Task Force. The task force relied on strong partnerships with and valuable contributions by the City of Auburn Police Department, the Bellingham Police Department, and the Wenatchee Police Department.
The case was prosecuted by Assistant United States Attorneys Kate Crisham and Rebecca Cohen.
Un hombre de California acusado formalmente de delitos de odio federales relacionados con el tiroteo en una Sinagoga en Poway y el incendio provocado en una mezquita en EscondidoRead the Press Release
Un gran jurado federal en el Tribunal Federal para el Distrito Sur de California acusó a un hombre de California de delitos de odio federales y otros delitos relacionados con armas de fuego, entre ellos el asesinato de una persona y el intento de asesinato de otras 53 más, por sus acciones durante el tiroteo del 27 de abril en la Sinagoga de Chabad de Poway en California y por el incendio provocado del 24 de marzo en la Mezquita Dar-ul-Arqam en Escondido. El Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband, el Fiscal Federal para el Distrito Sur de California, Robert S. Brewer, Jr, y la Agente Especial Encargada en funciones del FBI en San Diego, Suzanne Turner, emitieron el anuncio.
John T. Earnest, 19, de Rancho Peñasquitos, California, fue acusado en la acusación formal de 113 cargos pronunciada hoy. La denuncia presentada el 7 de mayo acusó a Earnest de 54 cargos de obstrucción al libre ejercicio de creencias religiosas con el uso de un arma peligrosa, lo que resultó en la muerte, lesiones corporales e intentos de asesinato; 54 cargos de vulneración de la ley de Prevención de Delitos de Odio de Matthew Shepard y James Byrd Jr. y un cargo de daño a una propiedad religiosa por el uso de fuego en relación al intento de provocar un incendio en la mezquita. La acusación formal añade cuatro cargos por el disparo de un arma de fuego durante el transcurso de esos delitos de violencia.
Según la declaración jurada en apoyo de la denuncia penal, el 27 de abril Earnest condujo a la Sinagoga Chabad en Poway, donde miembros de la congregación se habían reunido para celebrar un culto religioso en honor al Shabat y el último día de la Pascua judía. Earnest entró en el edificio armado con un rifle de asalto AR-15 completamente cargado con un cargador de 10 cartuchos. Él llevaba puesto una funda en el pecho que contenía cinco cargadores adicionales, cada uno de ellos cargados con 10 cartuchos de municiones. La declaración jurada alega que estando dentro de la Sinagoga de Poway, Earnest abrió fuego y asesinó a una persona y lesionó a otros tres miembros de la congregación, entre ellos un menor de edad. Durante una pausa cuando Earnest intentó sin éxito recargar su rifle, varios miembros de la congregación, incluyendo un Agente de la Patrulla Fronteriza fuera de servicio, persiguieron a Earnest mientras este huía de la sinagoga. Earnest huyó de la escena en su carro, pero fue posteriormente capturado por las autoridades policiales, quienes descubrieron el AR-15 y cargadores adicionales de munición en el vehículo.
Más aún, la declaración jurada alega que, tras el tiroteo, los investigadores policiales hallaron un manifiesto en línea con el nombre de Earnest. Una copia del manifiesto se encontró posteriormente en el portátil de Earnest durante la ejecución de una orden de registro. En el manifiesto, Earnest hizo muchas declaraciones antisemíticas y antimusulmanes. En concreto, Earnest se refirió a los «judíos» como raza y manifestó que lo único que lamenta es no haber matado a más personas.
Según la declaración jurada, Earnest también confesó en el manifiesto el incendio provocado de una mezquita en Escondido en marzo del 2019. La declaración jurada alega que el 24 de marzo, siete individuos se encontraban dentro de la mezquita cuando olieron gasolina y vieron llamas saliendo de la grieta de una de las puertas de la mezquita. Los individuos apagaron el incendio, pero solo después de que el incendio hubiera dañado el exterior de la mezquita. La declaración jurada alega además que el vídeo de vigilancia muestra a un sospechoso llegando a la mezquita en el mismo tipo de vehículo que Earnest empleó para realizar el ataque en la sinagoga. El acusado supuestamente alegó en su manifiesto que se había inspirado por el tiroteo en la sinagoga Tree of Life en Pittsburgh, Pensilvania, y los tiroteos recientes en dos mezquitas en Nueva Zelanda.
Los Fiscales Federales Auxiliares Shane Harrigan, Peter Ko, John Parmley y Caroline Han, juntos con la Abogada de Litigios Rose Gibson, de la División de Derechos Civiles, están enjuiciando este caso en nombre del Gobierno. El FBI, la Oficina del Sheriff de San Diego, la Agencia de Control de Bebidas Alcohólicas, Tabaco, Armas de Fuego y Explosivos (ATF, por sus siglas en inglés), la Policía de San Diego y la Policía de Encondido llevaron a cabo la investigación.
Earnest se enfrenta a la máxima pena posible de muerte o cadena perpetua. Actualmente se encuentra bajo custodia estatal a la espera de cargos penales estatales. Una acusación formal es meramente eso, una acusación, y al acusado se lo considera inocente mientras no se pruebe su culpabilidad ante un tribunal de justicia.
Para más información sobre el trabajo del Departamento de Justicia por combatir y prevenir los delitos de odio, vaya a www.justice.gov/hatecrimes: es un único portal con enlaces a recursos del Departamento de Justicia relacionados con delitos de odio para la policía, los medios de comunicación, investigadores, víctimas, grupos de apoyo y otras organizaciones y personas.
Anexo(s):
Download earnest_indictment_.pdf
U.S. Postal Service Employee Sentenced for Embezzling Postal Money OrdersRead the Press Release
BOSTON – A U.S. Postal Service (USPS) employee has been sentenced in federal court in Boston with embezzling over $18,000.
Rashayna Seney, 26, of Randolph, was sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to time served (one day) and three years of supervised release with the special condition that during the first year she serve 74 days of intermittent confinement at a residential re-entry center. Judge Woodlock also ordered Seney to pay restitution totaling $18,150. The sentencing hearing took place on Thursday, May 16, but the final sentence was formally imposed today. In December 2018, Seney pleaded guilty to one count of embezzlement and theft of public money, property or records.
Seney began working for USPS around 2016, most recently as a Sales & Service Distribution Associate at the Waban Post Office. In this role, Seney had the ability to issue foreign and domestic postal money orders. Seney engaged in a scheme in which she issued money orders to friends and then voided the transactions so that her friends could deposit the orders without ever paying for them. Additionally, Seney used counterfeit bills in exchange for some money orders that her associates then cashed. Seney’s scheme cost the USPS over $18,000.
United States Attorney Andrew E. Lelling; Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office; Joseph W. Cronin, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office and made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit prosecuted the case.