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17 May 2019
Man Involved in 13-Year-Old’s Revenge Killing Sentenced to 18 YearsRead the Press Release
Darius Fields, a drug trafficker implicated in the kidnapping of 13-year-old Shavon Randle, was sentenced today to 216 months in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following a three-day trial in April 2018, Mr. Fields, then 27, was convicted on two counts of “lying and buying” – aiding and abetting false statements in the acquisition of a firearm – and one count of unlawful possession of a pistol.
At his sentencing, prosecutors introduced evidence indicating Mr. Fields was involved in the kidnapping of 13-year-old Shavon Randle, who was then brutally killed following a dispute over stolen marijuana.
The prosecution also presented evidence that Mr. Fields and his associates originally planned to kidnap Ms. Randle’s adult cousin, L.R., in retribution for her boyfriend’s supposed theft of their marijuana. When they arrived at her residence and discovered L.R. was gone, Mr. Fields’ associates instead abducted Ms. Randle, forcing her out of the house with a pillowcase over her head, agents testified. They later used a prepaid phone to call L.R. with a ransom demand: Return the stolen marijuana or they would kill the young girl.
Four days later, authorities discovered Ms. Randle’s body, with gunshot wounds in her head and torso, decomposing alongside the body of another dealer inside an abandoned home in Oak Cliff.
Additional evidence introduced at sentencing also indicated that shortly after Ms. Randle’s body was found, Mr. Fields, then incarcerated at Fannin County Jail, bragged to a fellow inmate about his involvement in the Randle murder, the inmate testified.
Taking into account Mr. Field’s relevant conduct in the Randle matter, Chief U.S. District Judge Barbara M.G. Lynn sentenced him to 216 months (18 years) behind bars.
“We can never heal this family’s wound, but we hope the knowledge that Mr. Fields will spend 18 years behind bars brings Ms. Randle’s loved ones some measure of relief,” said U.S. Attorney Nealy Cox. “Thankfully, federal law gives Judges discretion to adjust a defendant’s sentence based on all the relevant circumstances of the crime and the defendant’s criminal history, provided the sentence remains within the statutory range for the crime of conviction. In this case, as in all cases, we wanted the Judge to have all the pertinent facts – including the full extent of defendants’ involvement in the kidnapping of an innocent thirteen-year-old. It would be irresponsible for us not to provide the Court with such evidence.”
“Thank you to our partners at the Lancaster, Irving, and Dallas Police Departments as well as the FBI special agents whose tireless commitment ensured a positive outcome,” said Matthew J. DeSarno, Special Agent in Charge of the FBI Dallas Division. “This collaborative team effort demonstrates the dedication of DFW area law enforcement to the communities we serve.”
Local law enforcement has named Mr. Fields a “person of interest” in the Randle case, but has not charged Mr. Fields in connection with the girl’s murder.
The Federal Bureau of Investigation and the Lancaster Police Department conducted the investigation with assistance from Irving and Dallas Police. Assistant U.S. Attorneys Camille Sparks and Gary Tromblay prosecuted the case.
Madison Man Sentenced to 54 Months for Illegally Possessing FirearmRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that David A. Kelly, 33, Madison, Wisconsin, was sentenced today by U.S. District Judge William Conley to 54 months in federal prison for possessing a firearm as a convicted felon. Kelly pleaded guilty to the charge on March 14, 2019.
On July 16, 2018, while on the west side of Madison, Kelly retrieved a firearm from his vehicle and brandished it at a group of people, threatening to kill them. Kelly left the scene before police officers arrived. A warrant was issued for his arrest, and a search of his home revealed a loaded .40 caliber pistol. Kelly’s fingerprints were found on the firearm.
Kelly had been convicted in Dane County Circuit Court four days prior to the July 16 incident for being a felon in possession of a firearm. Kelly also has three prior felony drug convictions.
Judge Conley rejected Kelly’s request for a 30-month sentence, citing the defendant’s history of violence and lack of remorse.
This case was brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
The charge against Kelly was the result of an investigation conducted by the Madison Police Department, Wisconsin Department of Corrections, and Bureau of Alcohol, Tobacco, Firearms and Explosives. This prosecution was handled by Assistant U.S. Attorney Rita M. Rumbelow.
Man from Pueblo Pintado, N.m., Pleads Guilty to Aggravated Sexual Abuse in Indian CountryRead the Press Release
ALBUQUERQUE – Presley Dexter Sandoval, 25, of Pueblo Pintado, N.M., pleaded guilty in federal court yesterday to committing aggravated sexual abuse against a child within the boundaries of the Navajo Nation.
Sandoval entered a plea of guilty to an information charging him with committing the offense in McKinley County between January 1, 2013, and September 30, 2015. According to court documents, Sandoval engaged in forcible sexual acts with the child at a residence on at least two separate occasions.
Sandoval is an enrolled member of the Navajo Nation. He is currently in custody awaiting sentencing and faces a maximum term of life in prison.
The Gallup office of the FBI investigated the case. Assistant U.S. Attorneys David Cowen, Allison Jaros, and Jennifer Rozzoni are prosecuting the case.
Jury Convicts Man Subject to Victim Protective Orders for Possessing FirearmsRead the Press Release
OKLAHOMA CITY – CHAD WAYNE KASPEREIT, 34, of Duncan, has been convicted by a jury of possessing firearms while subject to a victim protective order and lying on a federal form to purchase firearms, announced First Assistant U.S. Attorney Robert J. Troester.
"This office aggressively enforces the federal prohibition against possessing a firearm while under an active victim protection order," said First Assistant U.S. Attorney Troester. "This case and others like it will protect victims from further abuse and protect law enforcement officers who respond to domestic calls. I want to thank the Oklahoma City Police Department, ATF, the Cleveland County District Attorney’s Office, and especially the prosecutors in my office for working together to seek justice in this important case."
According to Count 1 of a superseding indictment filed on March 19, 2019, Kaspereit made a materially false statement on Bureau of Alcohol, Tobacco, Firearms & Explosives Form 4473 when he falsely represented that he was not subject to a victim protective order. The superseding indictment charged he knew when he completed the form that he was subject to such an order in Stephens County, Oklahoma, when he made the false statement on December 7, 2017, at the Academy Store in Yukon, Oklahoma. The Stephens County protective order prohibited Kaspereit from harassing, stalking, or threatening his ex-wife and their three children, and from using force or threats of force against them. Relying on Kaspereit’s false statement, Academy sold Kaspereit a Taurus Judge .45 caliber revolver and a Taurus PT 738 .380 pistol. Anyone purchasing a firearm from a federally licensed firearms dealer must certify their answers to certain questions on Form 4473.
Counts 2 and 3 charged Kaspereit with the felony of possessing a firearm while subject to a victim protective order. Count 2 alleged he possessed the Taurus Judge .45 caliber revolver and the Taurus PT 738 .380 pistol between December 7, 2017, when he bought them at Academy, and February 26, 2018, a period during which he was subject to the Stephens County protective order. Count 3 alleged he possessed the Taurus PT 738 .380 caliber pistol on October 16, 2018, when he was subject to a separate victim protective order in Cleveland County, Oklahoma.
Today a jury convicted Kaspereit on the first two counts and found him not guilty on the third count. At trial, the jury heard evidence that Kaspereit was subject to protective orders that prohibited him from harassing, stalking, or intimidating his first wife and their three children, and then his second wife and her child, from September 3, 2015, until the present, with the limited exception of February 27, 2018, until March 18, 2018. The jury heard that Kaspereit’s first wife agreed to dismiss her protective order in February 2018 only because she believed it was not stopping him from doing anything to her or the children. The jury also heard evidence that Kaspereit used the handguns to threaten his second wife. Kaspereit has been in the custody of the U.S. Marshals Service since his arrest on January 15, 2019.
At sentencing, Kaspereit faces up to ten years in prison on each of the two counts of conviction, in addition to a fine of up to $250,000 per count. He will also be subject to up to three years of supervised release after imprisonment. Sentencing will take place in approximately ninety days.
These charges are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives, with assistance from the Cleveland County District Attorney’s Office and the Oklahoma City Police Department. Prosecuted by Assistant U.S. Attorneys K. McKenzie Anderson and Jacquelyn M. Hutzell, this case is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime. To enhance local effectiveness, the Western District of Oklahoma has emphasized prosecution of federal gun crimes connected to domestic violence.
Reference is made to public filings for further information.
Jessamine County Man Sentenced to 132 Months for Conspiracy to Distribute Heroin and CarfentanylRead the Press Release
LEXINGTON, Ky. — Jeffery Ruggiero, 29, of Nicholasville, Kentucky, was sentenced today, to 132 months in federal prison, by United States District Judge Karen C. Caldwell, for conspiracy to distribute heroin and carfentanyl and distribution of carfentanyl resulting in serious physical injury.
Beginning in July 2016 and continuing through January 19, 2017, Ruggiero conspired with several other people to distribute heroin and carfentanyl in Garrard, Jessamine and Fayette County. On January 10, 2017, Ruggiero and another defendant distributed a quantity of carfentanyl, which resulted in an overdose. On September 5, 2018, Ruggiero pled guilty to the charge and admitted to distributing at least 120 grams of heroin in the Central Kentucky area during the five-month period of the conspiracy.
“The defendant put lives at risk by distributing deadly drugs, including carfentanyl,” said United States Attorney Robert M. Duncan, Jr. “The defendant’s actions warranted the lengthy sentence he received today from the Court.”
Under federal law, Ruggierio must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Christopher Evans, Special Agent in Charge of the DEA, jointly made the announcement.
The investigation was conducted by the DEA. The United States was represented by Assistant United States Attorneys Cynthia T. Rieker and Todd Bradbury.
Jackson Man Sentenced under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Charles Brown, Jr. 42, of Jackson, was sentenced today by United States District Judge Carlton W. Reeves to 18 months in prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives. Brown was also ordered to pay a $1,000.00 fine.
On June 25, 2017, Charles Brown, Jr. arrived at the Jackson Police Department with a female identified as T.W. Brown was bringing her to JPD because he believed T.W. had information about a crime that had been committed. Brown is not a member of any law enforcement agency. Brown was seen wearing a bulletproof vest walking towards a 2000 maroon Jeep Grand Cherokee. An officer noticed that the vehicle had police dashboard lights on the front windshield. Officers asked Brown if he had a firearm inside the vehicle and he responded that he did. An inventory of the vehicle was conducted and a Rohm RG38 .38 caliber firearm with serial number 85594 as well as Winchester box that contained 28 rounds of ammunition were found.
On April 4, 2018, an indictment was filed charging Brown with being a felon in possession of a firearm. He had been previously convicted of shooting into an occupied dwelling in 2004, in Hinds County Circuit Court. Brown pled guilty before Judge Reeves on February 5, 2019.
U.S. Attorney Hurst commended the work of the Jackson Police Department and the Federal Bureau of Investigation and their cooperation with ATF agents and Project EJECT task force members. AUSA Erin Chalk is prosecuting the case.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Jackson Man Sentenced to 12 Months in Prison under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Arthur Lee Harris, Jr., 30, of Jackson, was sentenced today by U.S. District Judge Carlton W. Reeves to twelve months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation. Harris was also ordered to pay a $1,000 fine.
On August 22, 2018, Jackson Police officers stopped the vehicle Harris was driving at an administrative check point. Harris was unable to produce proof of insurance or a driver’s license. He was directed to exit the vehicle and officers observed a pistol in the cup holder of the driver’s door. Harris admitted it was his pistol. Subsequent to a background check, Harris was placed under arrest for being a felon in possession of a firearm. He has a prior felony conviction in Hinds County for statutory rape.
On November 6, 2018, Harris was charged in a federal criminal indictment for possession of a firearm by a convicted felon. He pled guilty before Judge Reeves on February 15, 2019.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Lynn Murray.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Jackson Man Sentenced to 10 Years in Prison under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Justin Jamal Williams, 29, of Jackson, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to 120 months in federal prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Williams was also ordered to pay a $1,500.00 fine.
On March 17, 2018, a Jackson Police officer conducted a traffic stop on a car with no license plate. The officer noticed that Williams, who was sitting in the back seat of the car, had a suspicious bulge in the leg of his pants and he was moving around nervously. When the officer asked Williams to step out of the car, he got out and attempted to push past the officer and run. Williams was immediately taken into custody, and a firearm was found on him. A second firearm belonging to Williams was found inside the vehicle.
Williams has prior felony convictions in Hinds County for burglary of a dwelling, possession of marijuana with intent to distribute, and possession of marijuana.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Ryan Storm Irwin, 26, of Jackson, pled guilty today before U.S. District Judge Carlton W. Reeves to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On February 18, 2018, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives were conducting a follow-up investigation on Ryan Storm Irwin who had been a passenger in a stolen vehicle stopped by the Jackson Police Department on January 24, 2018. They went to a residence in Jackson where they encountered Irwin sitting alone in the driver’s position in a vehicle. A Savage, Model 940A, 16-gauge shotgun with no serial number was wedged between the driver’s seat and the console. Irwin has a previous conviction for grand larceny in Rankin County and it is illegal for him to possess a firearm.
Irwin will be sentenced by Judge Reeves on August 20, 2019 at 9:00 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Lynn Murray.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
International Competition Network Adopts Framework for Competition Agency Procedures and Recommended Practices on Investigative Process, Announces U.S. Agencies Will Host 2020 ICN Annual ConferenceRead the Press Release
At its annual conference, the International Competition Network (ICN) established a Framework on Competition Agency Procedures (CAP) that reflects the commitment by its participants to uphold fundamental procedural fairness principles and adopted Recommended Practices for Investigative Process that offer aspirational guidance and norm-setting principles on procedural fairness. The ICN also presented reports on vertical mergers, vertical restraints, competition agency design, and private enforcement, the Department of Justice and the Federal Trade Commission (FTC) announced today. The ICN announced that the United States will host the 2020 ICN annual conference in Los Angeles, California.
The ICN held its 18th annual conference, hosted by Colombia’s Superintendence of Industry and Commerce, on May 15-17, 2019, in Cartagena, Colombia. Nearly 500 delegates from more than 80 jurisdictions participated, including competition experts from international organizations and the legal, business, academic, and consumer communities. The Department of Justice’s delegation was headed by Assistant Attorney General Makan Delrahim, and FTC Chairman Joseph J. Simons led the FTC delegation. The conference highlighted the achievements of the ICN working groups on cartels, mergers, unilateral conduct, competition advocacy and agency effectiveness, and featured discussion of the challenges of digitalization.
The conference approved two significant instruments to promote and strengthen procedural fairness in competition agency proceedings. The CAP came into effect on May 15, 2019, with the ICN announcing 62 participating agencies. The CAP establishes fundamental, procedural fairness principles that address non-discrimination, transparency, notice and meaningful engagement, timely resolution, confidentiality protections, impartiality, access to information and opportunity to defend, representation by counsel, written decisions, and independent review. By joining the CAP, competition agencies affirmatively indicate their intention to adhere to the principles laid out in the Framework. The principles are further supported by implementation provisions that facilitate agency-to-agency cooperation on procedures and regular review of CAP operations. While sponsored by the ICN, the CAP is open to all competition agencies around the world, including both ICN members and agencies that are not members of the ICN.
The U.S. Department of Justice served as co-chair for the Agency Effectiveness Working Group, which developed the Recommended Practices for Investigative Process in conjunction with the FTC. The Recommended Practices establish detailed, aspirational, procedural fairness norms for competition agency investigative tools, transparency, engagement during investigations, decision-making safeguards, and confidentiality protections. As Recommended Practices, they are the ICN highest level consensus statement on agency procedures and procedural fairness.
“The ICN has become a crucial instrument for dialogue, cooperation, and convergence within the global antitrust community,” said Assistant Attorney General Delrahim. “The Annual Conference provides us all with an opportunity to reflect on the great progress that has been made in competition policy and enforcement around the world, as well as the challenges that lie ahead.”
On May 15, 2019, Assistant Attorney General Delrahim spoke on a panel celebrating the launch of the ICN CAP. The panel recognized the historic nature of the multilateral framework. The principles outlined by the Multilateral Framework on Procedures, as described by Assistant Attorney General Delrahim in a speech at the Council on Foreign Relations on June 1, 2018, served as a foundation for the CAP. The CAP was adopted by the ICN on April 3, 2019, and it became open for all competition agencies to join as participants on May 1, 2019.
Chairman Simons helped lead the conference’s panel discussion of Merger Review in the 2020s. The Panel explored whether and how digitalization and globalization are likely to change merger review in the 2020s, given their continued influence on the evolution of competition policy. The FTC has for the past three years co-chaired the ICN’s Merger Working Group, which promotes convergence toward best practices in merger process and analysis and seeks to reduce the public and private costs of multijurisdictional merger reviews. This year, the Merger Working Group presented a report on vertical mergers and promoted the use of its Framework for Merger Review Cooperation, developing explanatory material on the types of documents typically exchanged in multijurisdictional merger review to support sound enforcement cooperation.
“Understanding how a market works is crucial to assessing a merger’s competitive impact, and more learning about digital markets can help refine our competition assessments. Yet digital markets do not require significant changes to our existing merger laws or analysis,” said Chairman Joseph Simons. “This is because our antitrust framework has consistently proven that it is sufficiently robust and flexible to fit new markets and new ways of doing business.”
Deputy Assistant Attorney General Roger Alford moderated a panel discussing agency effectiveness through organizational design. The panel was part of the Agency Effectiveness Working Group project on competition agency choices in the design of their enforcement programs.
Randolph Tritell, Director of the FTC’s Office of International Affairs, led the concluding panel, showcasing how diverse competition agencies around the world benefit from implementing all types of ICN work product.
The Unilateral Conduct Working Group presented its project on vertical restraints. The project examined a series of hypothetical vertical restraints and their effect on competition and potential resulting efficiencies.
The Cartel Working Group presented a new chapter on private enforcement for the working group’s Anti-Cartel Enforcement Manual and a report on leniency incentives.
The Advocacy Working Group compiled case studies as part of its Strategy Project, with specific examples of how agencies have developed strategies and assessed their advocacy initiatives. The working group also drafted a report on ICN member competition advocacy initiatives involving digital markets.
Created in October 2001 to increase understanding of competition policy and promote convergence toward sound antitrust enforcement around the world, the ICN, founded by 15 agencies including the Department of Justice’s Antitrust Division and the FTC, has grown to 139 member agencies from 126 jurisdictions, supported by a wide network of non-government advisors from around the world.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch and pleading not guilty on May 15 was:
Aaron Matthew Manning, 29, of Bozeman, on charges of distribution of child pornography, transportation of child porn and receipt of child porn. If convicted of the most serious crime, Manning faces a minimum five years to 20 years in prison, a $250,000 fine and five years to life of supervised release. Manning was detained. The case was investigated by the Bozeman Police Department, the Gallatin County Sheriff’s Office, Homeland Security Investigations and the Internet Crimes Against Children Task Force. Pacer case reference. 19-11.
Bruce Alan Gagne, 59, of Bozeman, on charges of receipt of child pornography. If convicted of the most serious crime, Gagne faces a minimum five years to 20 years in prison, a $250,000 fine and five years to life of supervised release. Gagne was released pending further proceedings. The case was investigated by the Bozeman Police Department, Homeland Security Investigations and the Internet Crimes Against Children Task Force. Pacer case reference. 19-12.
Francis Edward Burke, Jr., 25, of Polson, on charges of felon in possession of a firearm. If convicted of the most serious crime, Burke faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Burke was detained. The case was investigated by the Polson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-22.
Dominique Autherallen Hamilton, 22, of Helena, and Jada Marie Johnson, 23, of Helena, on charges of bank fraud, wire fraud and aggravated identity theft. If convicted of the most serious crime, Hamilton and Johnson face a maximum 30 years in prison, a $1 million fine and five years of supervised release. Hamilton and Johnson were released pending further proceedings. The case was investigated by the FBI. Pacer case reference. 19-04.
Jeffrey Kenneth Knapp, 41, of Montana City, on charges of felon in possession of a firearm. If convicted of the most serious crime, Knapp faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Knapp was released pending further proceedings. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-3.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on May 16 was:
Michael Alan McNulty, 54, of Billings, on charges of conspiracy with intent to distribute and possession with intent to distribute methamphetamine. If convicted of the most serious crime, McNulty faces a minimum mandatory 10 years to life in prison, a $10 million fine and a minimum five years of supervised release. McNulty was detained. The case was investigated by the FBI. Pacer case reference. 19-51.
Harley Matthew Isis McMillan, 24, a transient, on charges of sexual abuse of a minor. If convicted of the most serious crime, McMillan faces a maximum 15 years in prison, a $250,000 fine and five years to life of supervised release. McMillan was released pending further proceedings. The case was investigated by the FBI. Pacer case reference. 19-50.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Houston Man Sentenced for Federal Drug Trafficking and Money Laundering ViolationsRead the Press Release
BEAUMONT, Texas – A 41-year-old Houston man has been sentenced to federal prison for drug trafficking and money laundering violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
John D. Leontaritis, owner and operator of Vanderhall Exotics of Houston, and former owner operator of Global Motorcars of Houston, car dealerships that specialized in exotic, luxury automobiles, was found guilty by a jury on Dec. 4, 2018 of conspiracy to possess with intent to distribute and distribution of methamphetamine, as well as, conspiracy to commit money laundering, which were committed from 2013 to 2017 in both the Houston and Beaumont areas. Today, he was sentenced to 240 months in federal prison by U.S. District Judge Marcia A. Crone.
According to information presented in court, Leontaritis acted as a financier in a large-scale Houston-based drug trafficking organization that was distributing large amounts of drugs from Mexico to various cities in the United States for several years. Specifically, Leontaritis laundered drug profits through his luxury automobile dealership in Houston by accepting cash from known drug dealers in return for luxury vehicles. As part of the conspiracy, he used fraudulent dealer invoices to hide the true identity of the buyers from law enforcement. The conspiracy spanned many years and involved hundreds of kilograms of methamphetamine, and millions of dollars laundered through the dealership. The court sentenced Leontaritis to 240 months (20 years) on each count to run concurrent and those sentences to run consecutive to a Southern District of Texas federal conviction for theft of public money in 2018.
“People who help launder drug money are critical to the conspiracies that allow the drug trade to operate,” said U.S. Attorney Joseph D. Brown. “Law enforcement worked very hard, and stayed after this case doggedly to make sure every participant was prosecuted.”
“Today’s lengthy prison sentence for John Leontaritis is another example of how aiding and abetting a drug trafficker can be just as risky as drug trafficking itself,” said Houston DEA Special Agent in Charge Will R. Glaspy. “We will investigate and prosecute anyone who supports these criminal enterprises.”
This case is the result of an extensive joint investigation by 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.
This case was investigated by the U.S. Drug Enforcement Administration, the Houston Police Department and the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorneys Michelle S. Englade and Michael Anderson.
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Honduran Man Pleads Guilty to Immigration CrimeRead the Press Release
BECKLEY, W.Va. – A Honduran man pled guilty to immigration crime, announced United States Attorney Mike Stuart. Elmer Hernandez, 30, entered a guilty plea to the felony offense of Reentry of a Removed Alien. He faces up to two years of incarceration when he is sentenced on August 22, 2019. Stuart commended the work of U.S. Immigration and Customs Enforcement (ICE) and the West Virginia State Police.
“Even here in West Virginia, illegal immigration is a serious issue,” said United States Attorney Mike Stuart. “Every week we prosecute more and more illegal reentry cases. The crisis at the border is a crisis we feel here in West Virginia. ICE is doing a terrific job as are our other law enforcement partners that work so hard to keep our communities safe.”
On March 9, 2019, a West Virginia State Police Trooper saw a car that was stopped at Mile Marker 52 on the West Virginia Turnpike outside of Beckley, Raleigh County, West Virginia. Three men were standing outside a car with its emergency blinkers on. When the Trooper pulled in, the men ran to the car and began to drive away. The Trooper asked the driver what was happening and for a driver’s license. The driver could not communicate with the Trooper due to a language barrier and did not have a driver’s license. The Trooper contacted a translator service provided by ICE to assist. The driver and two other individuals spoke with ICE agents telephonically and all three were found to be in the United States illegally. All three men were taken into custody and fingerprinted. Hernandez, one of the three men, was found to be a prior reentry. Specifically, his prints matched a prior removal from Pennsylvania in 2015. Hernandez admitted to ICE agents that he was in the United States illegally and had not obtained permission to legally enter the United States. He had not otherwise sought legal status or citizenship. Hernandez further admitted to ICE agents that he was a Honduran citizen.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Erik S. Goes is responsible for the prosecution.
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Harris County Man Guilty of Liberty County Bank RobberyRead the Press Release
BEAUMONT, Texas – An 18-year-old LaPorte, Texas man has pleaded guilty to bank robbery in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Aaron Gonzalez pleaded guilty to charges of bank robbery by force or intimidation before U.S. Magistrate Judge Zack Hawthorn on May 16, 2019.
According to information presented in court, on Mar. 6, 2019, Gonzalez robbed the Texas First Bank on FM 834 in Hull, Texas by entering the bank and presenting a threatening note to a bank teller. Gonzalez left the bank with approximately $7,350.00 in cash. Video surveillance and witness accounts of the bank robber and his vehicle led to Gonzalez’ arrest. Gonzalez was indicted by a federal grand jury on Apr. 3, 2019
Under the federal statute, Gonzalez faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office
This case was investigated by the Federal Bureau of Investigation, the Liberty County Sheriff’s Office, the LaPorte Police Department and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
Guilty Plea: Overland Park Man Had 44,000 Images of Child PornRead the Press Release
KANSAS CITY, KAN. – An Overland Park man today admitted he collected more than 44,000 images of child porn, some of which were shared with other computer users, U.S. Attorney Stephen McAllister said.
Robert A. Weick, 32, Overland Park, Kan., pleaded guilty to one count of distributing child pornography. Weick came under investigation when a task force officer from the FBI used a file-sharing program to download child pornography from Weick’s computer. When investigators served a search warrant at Weick’s home, they discovered approximately 44,000 images and 500 videos containing child pornography.
Sentencing is set for Sept. 3. Both parties have agreed to recommend a sentence of 100 months in federal prison and $28,000 in restitution to victims who have been identified by the National Center for Missing and Exploited Children. McAllister commended the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.
GreenvilleWoman Sentenced for Possessing a Controlled SubstanceRead the Press Release
PITTSBURGH, Pa. – A resident of Greenville, Pennsylvania, has been sentenced in federal court to a term of imprisonment of time served or 200 days, to be followed by two years of supervised release on her conviction on a charge of possession of a controlled substance, United States Attorney Scott W. Brady announced today.
Chief United States District Court Judge Mark R. Hornak imposed the sentence on Kristen Shearer, 24.
According to information presented to the court, on August 9, 2017, law enforcement executed a search warrant at a residence in the Elliot section of Pittsburgh connected to main target Lynell Guyton. Kristen Shearer and three other individuals, including Guyton were present at the house. Large amounts of narcotics and packaging paraphernalia were visible. The Allegheny County Medical Examiner’s Office confirmed that the narcotics recovered contained cyclopropyl fentanyl, an analogue of fentanyl. She admitted to packaging some of the stamp bags.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Department of Homeland Security Investigations, the United States Postal Inspection Service and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Shearer
Grass Valley Man Sentenced for Child Pornography and Online Child Enticement CrimesRead the Press Release
SACRAMENTO, Calif. — Samuel C. Thompson, 34, of Grass Valley, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 10 years and four months in prison for receipt of child pornography and attempting to use the internet to entice a child to engage in sexual activity, U.S. Attorney McGregor W. Scott announced.
“Homeland Security Investigations (HSI) (San Francisco and Northern California) is committed to public safety, which includes protecting the children and youth of our communities who are most vulnerable to online predators,” said Ryan L. Spradlin, Special Agent in Charge, Homeland Security Investigations. “We can’t arrest our way out of this problem – the real key to combatting online sexual predators is teaching parents and their children about the dangers of online predators and where to go for help. HSI will continuing working with its federal, state, and local law enforcement partners throughout the Bay Area and Northern California in this crucial endeavor.”
According to court documents, between August 2012 and March 2013, Thompson used a peer-to-peer file sharing software program to download child pornography files from the internet. He was charged in case 2:13-cr-273-GEB with receipt of child pornography and pleaded guilty in May 2016. That case was the product of an investigation by Homeland Security Investigations.
According to court documents, in 2016, while Thompson was on supervised pretrial release in the 2013 case, he posted an online advertisement seeking to meet and teach a “younger lover.” After an undercover Placer County Sheriff’s detective replied to the advertisement, Thompson arranged to meet what he believed would be a 13-year-old girl for a sexual encounter. He was arrested when he arrived at a park in Auburn, where he planned to carry out that sexual encounter. He was charged in case 2:16-cr-232-GEB with attempted online enticement of a minor. That case was the product of an investigation by the Placer County Sheriff’s Office and the Federal Bureau of Investigation.
“The FBI will always work with its law enforcement partners to protect the innocence of the children in the communities we serve,” said Assistant Special Agent in Charge, Tom Osborne. “Thompson continued to pose as a threat to minors by attempting to contact a teen for sex while awaiting sentencing for child pornography charges.”
Assistant U.S. Attorney Matthew G. Morris prosecuted both cases.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Four Arrested at Embassy of Venezuela Appear in CourtRead the Press Release
WASHINGTON –Four individuals who were arrested and removed from the Embassy of Venezuela yesterday each made their initial appearance in the U.S. District Court for the District of Columbia today on federal charges stemming from trespassing and interfering with the U.S. Department of State’s protective functions, announced U.S. Attorney Jessie K. Liu.
An arrest warrant was issued on May 15, 2019, for Kevin Bruce Zeese, 64, Margaret Ann Flowers, 57, Adrienne Pine, 49, and David Vernon Paul, 70, who were located in the Embassy of the Bolivarian Republic of Venezuela in Washington, D.C. The individuals were arrested on a criminal complaint charging them with a violation of 18 U.S.C. § 118, Interference with Protective Functions of the Department of State, for knowingly and willingly obstructing, resisting, or interfering with a Federal law enforcement agent engaged, within the United States, in the performance of the protective functions of the State Department Basic Authorities Act.
According to the complaint:
- On January 23, 2019, President Donald J. Trump officially recognized the President of the Venezuelan National Assembly, Juan Guaidó, as the Interim President of Venezuela.
- On January 23, 2019, Secretary of State Michael R. Pompeo released an official press statement recognizing Juan Guaidó as the new interim President of Venezuela. The notification stated that Mr. Vecchio has authority to take actions on behalf of Venezuela.
- On January 24, 2019, interim President Juan Guaidó notified the United States Government that Mr. Carlos Alfredo Vecchio was accredited as Chargé d’Affaires of the Embassy of Venezuela in the United States.
- The United States accepted interim President Juan Guaidó’s notification of accreditation of Mr. Carlos Alfredo Vecchio as the Chargé d’Affaires of the Embassy of the Government of Venezuela to the United States on January 25, 2019.
- On January 29, 2019, interim President Juan Guaidó sent a letter to President Trump appointing Mr. Carlos Alfredo Vecchio as Ambassador of the Bolivarian Republic of Venezuela to the United States of America.
Members of a group called Code Pink, individuals calling themselves the Embassy Protection Collective, and members of a group called the Popular Resistance began occupying the Venezuelan Embassy and the Permanent Mission of Venezuela to the Organization of American States on April 10, 2019.
On April 26, 2019, Venezuelan Ambassador Carlos Vecchio sent a diplomatic note to the U.S. Department of State, requesting the support of the Government of the United States for the Venezuelan Embassy’s efforts to take occupancy of the premises of the Venezuelan Embassy in Washington, D.C. In the diplomatic note, Ambassador Vecchio requested the assistance of U.S. law enforcement officials in the removal of any person on the premises of the Venezuelan Embassy who is not authorized by the Venezuelan government to be present.
On May 13, 2019, the Diplomatic Security Service read a trespass notice via loudspeaker and posted trespassing notices at the Embassy of Venezuela in Washington, D.C. After the reading, the four defendants remained in the Embassy and refused to vacate the premises. The defendants’ refusals to leave the Embassy interfered with the Department of State’s protective function of maintaining the security of Venezuelan Embassy and the Permanent Mission of Venezuela to the Organization of American States.
At today’s hearing before Magistrate Judge G. Michael Harvey, the defendants were released on various conditions, and the next court date was set for June 12, 2019.
The charges in criminal complaints are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The statutory maximum penalty for a charge of Interference with Protective Functions of the Department of State is one year of incarceration. If convicted of any offense, each defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The investigation into this matter was conducted by the Diplomatic Security Service in cooperation with other law enforcement partners including the U.S. Secret Service Uniformed Division.
The case is being prosecuted by Special Assistant United States Attorney Danielle Rosborough.
Former Washington State Bank CEO Sentenced to One Year in Prison for Multi-Year Tax Fraud of more than $865,000Read the Press Release
The former Chief Executive Officer of a Pacific Northwest community bank was sentenced today in U.S. District Court in Wisconsin to one year and a day in prison and one year of supervised release and a $150,000 fine for filing a false tax return, announced U.S. Attorney Brian T. Moran. Between 2010 and 2016, VICTOR KARPIAK, 64, now of La Crosse, Wisconsin, failed to report more than $2.3 million in income on his taxes. KARPIAK previously served as President and CEO of First Savings Bank Northwest based in Renton, Washington. He retired in 2013 and moved from the Seattle area. KARPIAK was charged in the Western District Washington, but chose to have the case resolved near his new home in Wisconsin. U.S. District Judge William M. Conley imposed the sentence.
According to records filed in the case, between 2010 and 2016, KARPIAK served as a trustee and consultant for a woman who was the beneficiary of a family and a marital trust. KARPIAK became a trustee because the woman’s late husband was a significant customer for the bank. Over those years, KARPIAK paid himself fees of $3,265,072 but on his taxes KARPIAK reported less than a third of that income ($943,322). The tax loss on more than $2,321,750 in income is $867,540. KARPIAK will pay $867,540 to the IRS as well as any interest or civil penalties the IRS imposes in the case. The interest alone in this case could total more than $143,647.
In their sentencing memo, prosecutors noted that that KARPIAK engaged in the tax fraud even as he earned significant salary and benefits as the bank CEO. “Our system of government relies on individuals --- particularly high-earners such as Karpiak --- to pay a modest portion of earnings toward communal projects and programs… (T)he true victim of Karpiak’s greed remains the public and his fellow taxpayers, from whom he effectively stole,” prosecutors wrote in their sentencing memo. Now with four homes across two states, multiple luxury vehicles and a pension alone of more than $150,000 annually, KARPIAK did not need to cheat on his taxes to make ends meet. As part of his sentencing hearing, KARPIAK made a payment on his tax obligation of more than $1 million.
“Today Mr. Karpiak was held accountable for willfully and intentionally violating his legal duty to declare and pay his taxes,” said Justin Campbell, IRS Criminal Investigation Special Agent in Charge, Seattle Field Office. “The U.S. tax system works because honest law-abiding taxpayers know that everyone, including corporate officers, are paying their fair share.”
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and is being prosecuted by Assistant United States Attorneys Steven Masada of the Western District of Washington and Elizabeth Altman of the Western District of Wisconsin.
Former VA Podiatry Chief and Sacramento CEO Convicted for Health Care Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — A federal jury found Anthony Lazzarino, 68, former Chief of Podiatry for the Veterans Affairs’ (VA) Northern California Health Care System, and Peter Wong, 61, founder and CEO of Sunrise Shoes and Pedorthic Service Corporation, guilty of health care fraud and conspiracy to commit wire fraud, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, between March 2008 and February 2015, Lazzarino and Wong engaged in a scheme to defraud the VA by billing for custom work and services that were prescribed but not supplied in shoes delivered to veterans. In addition, Lazzarino, Wong, and Jai Aing Chen, who separately pleaded guilty on December 6, 2016, agreed to make materially false statements to the VA regarding where the shoes were manufactured, in the course of applying for a national contract worth over $11 million per year.
This case is the product of an investigation by the Department of Veterans Affairs Office of Inspector General, Department of Veterans Affairs Police Service, Homeland Security Investigations, and Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew M. Yelovich and Lee S. Bickley are prosecuting the case.
Lazzarino and Wong are scheduled to be sentenced by U.S. District Judge John A. Mendez on August 27. They face a maximum statutory penalty of 10 years in prison and a $250,000 fine for each health care fraud count, and five years in prison and a $250,000 fine for the wire fraud conspiracy count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former UNF Student Pleads Guilty to Distributing Child Sex Abuse Video over the InternetRead the Press Release
Jacksonville, Florida – Anthony Davis Stagnitta (22, St. Petersburg) has pleaded guilty to distributing child sex abuse videos using the internet. Stagnitta faces a mandatory minimum penalty of 5 years, and up to 20 years, in federal prison, as well as a potential life term of supervised release. A sentencing date has not yet been set.
According to court documents, in February 2018, agents from Homeland Security Investigations (HSI) began an investigation into the sexual exploitation of children that was occurring on a popular messaging application. The agents discovered that between November 24 and December 3, 2017, Stagnitta had engaged in online conversations with other users in a public group chat on the app and had discussed trading child pornography. On December 3, 2017, Stagnitta sent a video to the group that depicted the sadistic sexual abuse of an infant.
On April 30, 2018, HSI agents executed a search warrant at Stagnitta’s home in Jacksonville. During an interview, Stagnitta admitted that he had discussed child pornography using this app, had sent videos of child pornography to other users via private messaging, and had posted videos in the group chats. Forensic analysis of Stagnitta’s cellphone revealed that it contained 2,904 images depicting young children being sexually abused.
This case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations 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 Port Vue Man Orchestrated 2 Large Shipments of Heroin from Patterson, New Jersey to Pittsburgh AreaRead the Press Release
PITTSBURGH, Pa. - A former resident of Port Vue, Pennsylvania, pleaded guilty in federal court to charges of conspiracy to distribute and possession with intent to distribute one kilogram or more of heroin, United States Attorney Scott W. Brady announced today.
Jarran Bell, 38, formerly of Port Vue, PA, pleaded guilty to three counts before United States District Court Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that, this investigation, which utilized Title III intercepts from December 2014 through April 2015 of several different cellular telephones, surveillance, controlled drug purchases, and other investigative techniques, established the existence of a number of overlapping and interrelated drug distribution networks at work in the Western District of Pennsylvania and New Jersey.
Bell and his girlfriend Krystle Barretto were living together during the investigation. Bell and Barretto maintained numerous other residences, which were used as stash houses. Amanda Santiago lived in one of those residences during the investigative period.
In April of 2015, Bell and Barretto orchestrated two large shipments of heroin from Patterson, New Jersey, back to the McKeesport/Port Vue area. On April 19, 2015, a courier, Amanda Santiago, transported approximately 500 bricks of heroin from Patterson, New Jersey back to McKeesport via taxi cab.
On April 20, 2015, several search warrants were conducted. One of the search warrants took place at the primary residence of Bell and Barretto. Agents seized: a loaded firearm, approximately five bricks of heroin and a money counter. All of the aforementioned items were seized from the master bedroom of Bell and Barretto. The loaded gun was located in a dresser drawer along with the five bricks of heroin. Baretto was the lawful owner of the firearm.
Judge Bissoon scheduled sentencing for September 11, 2019. Judge Bissoon ordered Bell remained detained pending sentencing. The law provides for a term of imprisonment of not less than 15 years to a maximum of life. A fine not to exceed $20,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Amanda Santiago pleaded guilty and was sentenced to 2 ½ years (30 months) in prison. Krystle Barretto pleaded guilty and is scheduled to be sentenced on June 19, 2019.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Bell.
Former Manager Sentenced to Federal Prison for Embezzling over $500,000 from Naknek Electric AssociationRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Naknek woman has been sentenced for embezzling approximately $510,181 from Naknek Electric Association (NEA), an organization receiving federal funds.
Donna Vukich, 60, of Naknek, Alaska, was sentenced yesterday by Chief U.S. District Judge Timothy Burgess to serve 34 months in prison, followed by three years of supervised release. In January 2019, Vukich pleaded guilty to theft concerning a program receiving federal funds, and filing a false tax return. Vukich has repaid $510,181 in restitution to NEA.
According to court documents, from January 2011 through December 2015, Vukich was the General Manager of NEA. As part of her duties as General Manager, Vukich was in possession of a company-owned credit account for the purpose of making business purchases for NEA. During this time, Vukich paid approximately $510,181 in unauthorized personal expenses with a company credit card and used NEA funds to pay the credit card bill. The unauthorized expenditures included paying for travel, for her daughter’s college tuition, cash advances, and entertainment items for her, her family, and friends. Vukich spent approximately $51,000 at Norwegian Cruise Lines, approximately $62,000 on Alaska Airlines flights, approximately $16,000 at Little Creek Casino Hotel and Resort in Washington, and approximately $7,000 at dōTERRA.
As General Manager, Vukich was responsible for the financial reporting of NEA, to include overseeing the identification of expenditures and assigning the expenses to various general ledger accounts. The investigation revealed that Vukich falsely assigned the charges for her personal expenditures to multiple general ledger expense accounts in order to conceal the nature of her unauthorized expenditures.
The investigation further revealed that Vukich intentionally filed false income tax returns for calendar years 2011 through 2015. She willfully did not report the amount of money she had knowingly converted from NEA during those years, which resulted in a tax loss to the United States of $138,689.
IRS Criminal Investigation (IRS-CI) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorneys Aunnie Steward and Anne Veldhuis.
Former High School Counselor Sentenced for Mail Fraud Scheme Inflating Daughter's Grades to Obtain College ScholarshipsRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced that Mellissa Krystynak, 49, of St. Lucie, Florida, was sentenced to six months in prison for a mail fraud scheme she executed while employed as a counselor at Greenbrier West High School, in Charmco, Greenbrier County, West Virginia. She was also ordered to pay $13,750 in restitution to the victim scholarship organizations, and she was fined an additional $5,000.
“A college admission scandal right here in West Virginia. Hiking a daughter’s grades and changing a daughter’s boyfriend’s grades are both new ones on me. Although every parent with a teenager appreciates the fantasy, you just can’t do it even if you want to,” said United States Attorney Mike Stuart. “Krystynak abused her position of authority to inflate her daughter’s grades and, adding even more harm, to use those fake grades to obtain college scholarships. Everyone deserves a level playing field.”
Krystynak was a school counselor at Greenbrier West from 2011 until 2017. While she was employed there, two of her children attended the school. Krystynak used her position as a counselor to gain access to the school’s computerized grading programs to inflate at least thirty-four of her oldest daughter’s grades. Her daughter then used the inflated grades to apply for and receive over ten different college scholarships with a potential benefit of over $20,000. These scholarships were based on applications containing the fraudulent grades and transcripts. Krystynak also changed one of the grades of her younger daughter’s boyfriend from a course he withdrew from and received no grade to an “A.”
United States District Judge Irene Berger imposed the sentence. Former Assistant United States Attorney Gabriel Wohl and Assistant United States Attorney Steve Loew handled the prosecution. The investigation was conducted by the United States Department of Education, Office of Inspector General.
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Former CIA Officer Sentenced to Prison for EspionageRead the Press Release
ALEXANDRIA, Va. – A former Central Intelligence Agency case officer was sentenced today to 20 years in prison for his transmission of national defense information to an agent of the People’s Republic of China.
“Mallory not only put our country at great risk, but he endangered the lives of specific human assets who put their own safety at risk for our national defense,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “There are few crimes in this country more serious than espionage, and this office has a long history of holding accountable those who betray our country. As the Chinese continue to attempt to identify and recruit current and former members of the United States intelligence community, those individuals should remain vigilant and report any suspicious activity to the appropriate security officials. This case should send a message to anyone considering violating the public’s trust and compromising our national security by disclosing classified information. We will remain steadfast and dogged in pursuit of these challenging but critical national security cases.”
According to court records and evidence presented at trial, in March and April 2017, Kevin Patrick Mallory, 62, of Leesburg, travelled to Shanghai and met with an individual, Michael Yang, who held himself out as a People’s Republic of China think tank employee. However, Mallory stated that he quickly concluded Yang was working for the People’s Republic of China Intelligence Service (PRCIS) as a Chinese Intelligence Officer.
“Former U.S. Intelligence officer Kevin Patrick Mallory will spend the next 20 years of his life in prison for conspiring to pass national defense information to a Chinese intelligence officer,” said Assistant Attorney General John Demers. “This case is one in an alarming trend of former U.S. intelligence officers being targeted by China and betraying their country and colleagues. This sentence, together with the recent guilty pleas of Ron Hansen in Utah and Jerry Lee in Virginia, deliver the stern message that our former intelligence officers have no business partnering with the Chinese, or any other adversarial foreign intelligence service.”
Mallory, a United States citizen who speaks fluent Mandarin Chinese, consented to an FBI review of a covert communications (covcom) device he had been given by Yang to facilitate covert communications between the two. Analysis of the device, which was a Samsung Galaxy smartphone, revealed a number of communications in which Mallory and Yang talked about classified information that Mallory could sell to the PRCIS. FBI analysts were able to determine that Mallory had completed all of the steps necessary to securely transmit at least five classified U.S. government documents via the covcom device, one of which contained unique identifiers for human sources who had helped the United States government. At least two of the documents were successfully transmitted, and Mallory and Yang communicated about those two documents on the covcom device.
“U.S. Government employees are trusted to keep the nation’s secrets safe,” said FBI Washington Field Office’s Assistant Director in Charge, Nancy McNamara, “and this case shows the violation of that trust and duty will not be accepted. The targeting of former U.S. security clearance holders by foreign intelligence services is a constant threat we face, and the FBI will continue to preserve and combat these threats head on. I would like to thank the men and women of the FBI, and our counterparts at the Department of Justice, for their years of hard work to investigate and prosecute this case.”
Evidence presented at trial included surveillance video from a FedEx store in Leesburg where Mallory could be seen scanning classified at the Secret and Top Secret level onto a micro SD card. Though Mallory paid to have the paper copies of the eight documents shredded, FBI agents found a carefully concealed SD card containing those documents during a search of Mallory’s home, the day of his June 22, 2017 arrest. A recording was played at trial from June 24, 2017, where Mallory could be heard on a call from the jail asking his family to search for the hidden SD card.
Mallory has held numerous positions with various government agencies and several defense contractors, including working as a covert case officer for the CIA and an intelligence officer for the Defense Intelligence Agency (DIA). As required for his various government positions, Mallory obtained a Top Secret security clearance, which was active during various assignments during his career. Mallory’s security clearance was terminated in October 2012 when he left government service.
Mallory was found guilty by a federal jury in June 2018 of conspiracy to deliver, attempted delivery, delivery of national defense information to aid a foreign government, and making material false statements. The district court subsequently ordered acquittal of the delivery and attempted delivery of national defense information counts due to lack of venue.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, John C. Demers, Assistant Attorney General for National Security, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorneys John T. Gibbs and Colleen E. Garcia, and Trial Attorneys Jennifer Kennedy Gellie and Evan Turgeon of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-154.
Former CIA Officer Sentenced to Prison for EspionageRead the Press Release
Kevin Patrick Mallory, 62, of Leesburg, Virginia, was sentenced today to 20 years in prison to be followed by five years of supervised release after being convicted under the Espionage Act for conspiracy to transmit national defense information to an agent of the People’s Republic of China. Assistant Attorney General for National Security John C. Demers, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III.
“Former U.S. Intelligence officer Kevin Patrick Mallory will spend the next 20 years of his life in prison for conspiring to pass national defense information to a Chinese intelligence officer,” said Assistant Attorney General John Demers. “This case is one in an alarming trend of former U.S. intelligence officers being targeted by China and betraying their country and colleagues. This sentence, together with the recent guilty pleas of Ron Hansen in Utah and Jerry Lee in Virginia, deliver the stern message that our former intelligence officers have no business partnering with the Chinese, or any other adversarial foreign intelligence service.”
“Mallory not only put our country at great risk, but he endangered the lives of specific human assets who put their own safety at risk for our national defense,” said. U.S. Attorney Terwilliger. “There are few crimes in this country more serious than espionage, and this office has a long history of holding accountable those who betray our country. As the Chinese continue to attempt to identify and recruit current and former members of the United States intelligence community, those individuals should remain vigilant and report any suspicious activity to the appropriate security officials. This case should send a message to anyone considering violating the public’s trust and compromising our national security by disclosing classified information. We will remain steadfast and dogged in pursuit of these challenging but critical national security cases.”
“U.S. Government employees are trusted to keep the nation's secrets safe,” said Assistant Director in Charge McNamara, “and this case shows the violation of that trust and duty will not be accepted. The targeting of former U.S. security clearance holders by foreign intelligence services is a constant threat we face, and the FBI will continue to preserve and combat these threats head on. I would like to thank the men and women of the FBI, and our counterparts at the Department of Justice, for their years of hard work to investigate and prosecute this case.”
Mallory was found guilty by a federal jury in June 2018 of conspiracy to deliver, attempted delivery, delivery of national defense information to aid a foreign government and making material false statements. The district court subsequently ordered acquittal as to the delivery and attempted delivery of national defense information counts due to lack of venue.
According to court records and evidence presented at trial, in March and April 2017, Mallory, a former U.S. intelligence officer, travelled to Shanghai to meet with an individual, Michael Yang, who held himself out as a People’s Republic of China think tank employee, but whom Mallory assessed to be a Chinese Intelligence Officer.
Mallory, a United States citizen who speaks fluent Mandarin Chinese, consented to an FBI review of a covert communications (covcom) device he had been given by Yang to facilitate covert communications between the two. Analysis of the device, which was a Samsung Galaxy smartphone, revealed a number of communications in which Mallory and Yang talked about classified information that Mallory could sell to the PRC’s intelligence service. FBI analysts were able to determine that Mallory had completed all of the steps necessary to securely transmit at least five classified U.S. government documents via the covcom device, one of which contained unique identifiers for human sources who had helped the United States government. At least two of the documents were successfully transmitted, and Mallory and Yang communicated about those two documents on the covcom device.
Evidence presented at trial included surveillance video from a FedEx store in Leesburg where Mallory could be seen scanning documents classified at the Secret and Top Secret level onto a micro SD card. Though Mallory paid to have the paper copies of the eight documents shredded, FBI agents found a carefully concealed SD card containing those documents during a search of Mallory’s home, the day of his June 22, 2017 arrest. A recording was played at trial from June 24, 2017, where Mallory could be heard on a call from the jail asking his family to search for the hidden SD card.
Mallory has held numerous positions with various government agencies and several defense contractors, including working as a covert case officer for the Central Intelligence Agency (CIA) and an intelligence officer for the Defense Intelligence Agency (DIA). As required for his various government positions, Mallory obtained a Top Secret security clearance, which was active during various assignments during his career. Mallory’s security clearance was terminated in October 2012 when he left government service.
Assistant U.S. Attorneys John T. Gibbs and Colleen E. Garcia, and Trial Attorneys Jennifer Kennedy Gellie and Evan Turgeon of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Former Attorney Sentenced to Prison for Stealing $400K from Clients, Family Members and FriendRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALAN GIACOMI, 46, of Watertown, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 41 months of imprisonment, followed by three years of supervised release, for stealing more than $400,000 from clients of his law practice, including family members, and a friend.
According to court documents and statements made in court, Giacomi was a Waterbury-based attorney who practiced real estate and family law. In August 2014, Giacomi represented an elderly woman in connection with the disbursement of assets from her late brother’s estate. Giacomi stole nearly $18,000 from the estate instead of distributing the assets as required.
In approximately December 2014, Giacomi stole more than $26,000 in proceeds from his great aunt’s life insurance annuity instead of using the funds to pay her nursing home bill.
In April 2016, Giacomi convinced a friend to loan Giacomi $45,000 for a real estate opportunity. His friend withdrew $45,000 from his retirement savings and provided the funds to Giacomi. Giacomi used the money to pay off another real estate transaction and never paid his friend back.
In the fall of 2016, Giacomi represented his aunt and uncle in the sale of their home. Giacomi kept nearly $177,000 of the proceeds of the sale and used much of the money on other client matters.
Finally, in February 2017, Giacomi represented two clients in the sale of their home. Giacomi stole approximately $154,000 in proceeds of the sale, nearly $146,000 of which was owed to Giacomi’s clients, spending almost all of the money within a month.
Judge Shea ordered Giacomi to pay restitution in the total amount of $411,715.69. Most, but not all, of the victims have been reimbursed by Connecticut’s Client Security Fund.
On January 8, 2019, Giacomi pleaded guilty to one count of wire fraud.
Judge Shea ordered Giacomi, who is released on a $100,000 bond, to report to prison on July 26.
In April 2017, a Connecticut Superior Court judge suspended Giacomi from the practice of law.
This matter was investigated by the U.S. Secret Service with the assistance of the Statewide Bar Grievance Committee. The case was prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
Finance Director for Bucks County-based Company Charged with Wire FraudRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Matthew Chancler, 57, of Pottstown, Pennsylvania was charged by Information today with one count of wire fraud. The defendant was a Certified Public Accountant and the Director of Finance for an unnamed company located in Bristol, Pennsylvania. In this role, Chancler oversaw the financial operations of the company: accounts payable, accounts receivable, payroll, and auditing.
During an approximately two-year period, from August 2016 through July 2018, Chancler abused his position of trust by using company issued credit cards for over 1,800 personal purchases and over 400 cash withdrawals from ATMs, while disguising the true nature of these transactions in the company’s financial records in order to cover his tracks. Those personal purchases included clothing, electronics, food, travel, jewelry, sporting equipment, and other personal items and entertainment. In total, the defendant stole over $350,000 through his fraudulent use of the cards.
Chancler also manipulated the company’s payroll system to add additional funds to his own paycheck, citing them as “miscellaneous non-taxable income”. During the same time period, Chancler added several hundred dollars to each paycheck, totaling approximately $12,500.
“What’s most apparent here is the defendant’s alleged greed and willingness to abuse his position of authority,” said U.S. Attorney McSwain. “Businesses rely on professionals to maintain the financial health of their operations, as well as to abide by the law – not funnel money for their own personal use.”
If convicted, the defendant faces a maximum possible sentence of 20 years in prison.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Deputy United States Attorney Louis D. Lappen.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Convicts Champlin Man for String of Twin Cities RobberiesRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of MARTAVIS SHAWN DEMAR JAMES, 38, for the robbery and attempted robbery of 10 Twin Cities businesses. Following a four-day trial before U.S. District Judge Susan Richard Nelson, the jury found JAMES guilty on all counts.
United States Attorney Erica MacDonald said, “Over the course of several weeks, Mr. James carried out a brazen crime wave across the Twin Cities, targeting businesses in densely populated areas and robbing employees at gunpoint. Under the Project Safe Neighborhoods initiative, I have dedicated significant resources to pursuing violent criminals and combating gun-related violent crime such as this. When it comes to protecting our communities, we will not relent.”
As proven at trial, between March and June of 2018, JAMES robbed or attempted to rob at least 10 businesses located across the Twin Cities metro area, including locations in Anoka, Hennepin, and Ramsey Counties. The robberies mostly involved CVS Pharmacy stores across the Twin Cities metropolitan area, as well as a Dollar Tree Store in Coon Rapids and a Blaine BigLots store. In each successful robbery instance, JAMES wore a black hooded coat, a black mask and black gloves. He would point a firearm at the store employee(s), demand access to the business safe, order the employee(s) to put the cash into a duffel bag, and order them to the ground before fleeing.
As proven at trial, after gathering information on the robberies, law enforcement identified JAMES and began conducting surveillance on him. On June 1, 2018, law enforcement agents followed JAMES as he drove to a CVS store in Eden Prairie. Law enforcement agents and officers, as well as CVS security personnel, were able to lock the front doors of the CVS store prior to JAMES’ arrival, preventing him from gaining entry when he ultimately approached. When JAMES returned to his vehicle he was apprehended law enforcement.
This case is the result of an investigation conducted by the Minneapolis Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, with assistance from multiple local agencies and departments that initially investigated the robberies that occurred in their jurisdictions. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime.
Assistant U.S. Attorney Allen A. Slaughter tried the case.
Defendant Information:
MARTAVIS SHAWN DEMAR JAMES, 38
Champlin, Minn.
Convicted:
- Hobbs Act Robbery, 8 counts
- Attempted Hobbs Act Robbery, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Grand Jury Charges International Drug Smuggling Ring that Trafficked Kilograms of Cocaine, Heroin and MethamphetamineRead the Press Release
RIVERSIDE, California – A federal grand jury has charged 11 defendants on federal narcotics and money laundering charges stemming from a wiretap investigation into a drug trafficking ring that smuggled more than 107.8 kilograms (237.7 pounds) of cocaine, heroin, and methamphetamine from Mexico into the United States and Canada.
A federal indictment unsealed Thursday charged 11 defendants with conspiracy to distribute controlled substances, possession with intent to distribute controlled substances, and conspiracy to launder monetary instruments. This case is part of a larger wiretap investigation that altogether has resulted in federal indictments charging a total of 18 defendants.
According to the latest indictment, from May 2014 until October 2014, defendant Alvaro Maclovio Morales-Felix, a.k.a. “Pancho Panthera,” 42, of Mexico, arranged for kilogram quantities of narcotics from Mexico into the United States. Co-defendant Clovis Etzel Bravo-Silva, a.k.a. “Gordo,” “El Chavo de los 8s,” 37, of Nicaragua, then would coordinate the shipment and distribution of the narcotics via couriers from the United States into Canada. In one incident in October 2014, the defendants allegedly smuggled 24 kilograms of cocaine and heroin, stuffed in a spare tire, from Wilmington, California to Seattle and ultimately into Canada. In total, law enforcement seized 22.35 kilograms of heroin, 47.9 kilograms of cocaine, and 37.5 kilograms of methamphetamine.
The indictment also alleges that Bravo-Silva and Morales-Felix used co-defendant Manuel Enrique Valdes-Prado, 42, of Mexico, who owned an event ticket reselling business, to launder proceeds from the narcotics distribution, bring the proceeds from Canada into the United States, and then send them out to Morales-Felix in Mexico. For example, on May 21, 2014, Valdes-Prado allegedly deposited $110,691 in Canadian dollars ($97,352 in U.S. dollars) – the proceeds of the narcotics sales – into a bank account in Seattle. He then withdrew $19,000 in cash from the account from a bank branch in Chula Vista, California, then wired $55,601 to a bank account in Mexico, the indictment alleges.
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 case was investigated by the Drug Enforcement Administration, the Internal Revenue Service, Criminal Investigation, the Los Angeles County Sheriff’s Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Royal Canadian Mounted Police.
This matter is being prosecuted by Assistant United States Attorneys Tritia Yuen and Jerry C. Yang of the Riverside Branch Office.
Fayette County Man Sentenced to 78 Months for Fentanyl Trafficking and Firearm PossessionRead the Press Release
LEXINGTON, Ky. – Phillip Maurice Collins, 42, of Lexington, was sentenced to 78 months in federal prison today, by United States District Judge Danny C. Reeves, for possession with the intent to distribute fentanyl and cocaine, as well as possession of a firearm by a convicted felon.
On August 22, 2018, officers and detectives with the Lexington Police Department executed a search warrant on Collins’s home in Lexington. During the search, officers located quantities of fentanyl and cocaine possessed by Collins, with the intent to distribute it to other individuals. In addition to the narcotics, officers also located a loaded firearm in Collins’s bedroom. Collins had multiple prior felony convictions and was prohibited from possessing a firearm under state and federal law. Collins subsequently plead guilty to all charges, on January 30, 2019.
Under federal law, Collins must serve 85 percent of his sentence. Upon completion of his imprisonment, he will be under the supervision of the United States Probation Office for a period of six years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; D. Christopher Evans, Special Agent in Charge, DEA, Louisville Division; and Lawrence Weathers, Chief of Police, Lexington Police Department, jointly made the announcement.
Ellwood City Felon Pleads Guilty to Distributing Fentanyl, Illegally Possessing Pistols and AmmunitionRead the Press Release
PITTSBURGH -A felon from Ellwood City, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearms and narcotics laws, United States Attorney Scott W. Brady announced today.
Derick Davare, 32, pleaded guilty to four counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that from in and around 2015, and continuing to on or about October 22, 2018, Davare conspired with others to distribute and possess with intent to distribute 400 grams or more of fentanyl, a Schedule II controlled substance. Additionally, on or about October 22, 2018, Davare, being a convicted felon, illegally possessed a F.N. (FN Herstal) Five-Seven, 57 Caliber Pistol, a Sig-Sauer P226 9mm Pistol with an obliterated serial number, 5.7 x .28 ammunition and 9mm ammunition. He also possessed additional rounds of ammunition on August 28, 2018. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm or ammunition.
Judge Walton scheduled sentencing for September 20, 2019 at 9 a.m. The law provides for a total sentence of not less than ten years in prison and not more than life in prison, a fine of $15,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Brendan T. Conway and Marnie Sheehan-Balchon are prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation that led to the prosecution of Derick Davare. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. 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.
Eight people from Northwest Ohio indicted for firearms violations or armed robbery charges as part of a continued collaborative effort to reduce violent crime in the Toledo areaRead the Press Release
Eight people from Northwest Ohio were indicted for firearms violations or armed robbery charges as part of a continued collaborative effort to reduce violent crime in the Toledo area.
Among those indicted are people accused of illegally having firearms after domestic violence convictions, making illegal straw purchases of firearms, possessing stolen firearms, armed robbery and other offenses.
Indicted are: Brock Andrzejak, 23, of Toledo; Marco Roane, 35, of Sandusky; Teresa Jackson, 46, of Sandusky; Filmel Williams, Jr., 19, of Toledo; Joseph Mathis, 42, of Toledo; Willie Hall, 31, of Toledo; Marcus Bailey, 34, of Toledo, and James Robert Morgan, 33, of Bryan.
“These cases involve people who are not allowed to have firearms because of past crimes, such as domestic violence, as well as people lying to get guns or obtaining stolen weapons,” U.S. Attorney Justin E. Herdman said. “We will continue to work with police and federal agencies through Project Safe Neighborhoods and the Public Safety Partnership programs to make Toledo and Northwest Ohio safer.”
“Reducing gun crime is one of ATF’s core missions,” said ATF Special Agent in Charge Jonathan T. McPherson. “We are committed to working with our partners at the federal, state, and local level to investigate crime guns as well as identify and remove the most violent criminals from our streets.”
“While any one of these individual indictments on their own may not seem like a significant blow to overall violent crime, it is the totality of these cases that shows the significant work local and federal law enforcement partners are doing on a daily basis to make Toledo safer” said Toledo Police Chief George Kral. “As we have stated many times in the past, we appreciate our federal partnerships and we will continue to help bring federal cases against those who wish to do others harm in our community.”
These cases are part of Project Safe Neighborhoods, 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. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Toledo is also a National Public Safety Partnership city, in which the Justice Department selects cities for increased training and technical assistance focused on violent crime. Toledo, as a PSP city, was also selected last year for more than $492,000 in federal funding to pay for hardware and software designed to improve information-sharing capacity.
Andrzejak is charged with interference with commerce by threats of violence and brandishing a firearm in relation to a crime of violence. Andrzejak is accused of pointing a rifle at a cashier while robbing the Stop and Go on Bennett Road in Toledo.
Williams is charged with four counts of possession of stolen firearms and ammunition and three counts of possession of a firearm by a person adjudicated to be mentally defective. Williams on January 2, 2019, possessed a .45-caliber pistol, a 7.62x39mm rifle, a 5.56 pistol and ammunition, knowing the firearms were stolen. He also possessed firearms despite having been adjudicated by the Wayne County (Michigan) Probate Court to be mentally defective, according to the indictment.
Morgan was charged with possession of a firearm by a person with prior misdemeanor domestic violence convictions. Morgan, at various points in 2018 and 2019 possessed a Ruger .22-caliber pistol, a Smith & Wesson .38-caliber revolver, a German Sports Guns .22-caliber pistol and a Hermann Weihrauch .38-caliber revolver, despite a previous conviction for domestic violence, according to the indictment.
Mathis is charged with two counts of being a felon in possession of a firearm. Mathis possessed Taurus .380-caliber pistol and six rounds of ammunition on March 14, 2019, and a Smith & Wesson .380-caliber pistol and 34 rounds of ammunition on September 16, 2018, despite previous convictions for drug trafficking and possession of crack cocaine, according to the indictment.
Hall is charged with being a felon in possession of a firearm. Hall possessed a Smith & Wesson 40-caliber pistol and six rounds of ammunition on March 22, 2019, despite previous convictions for robbery, attempted burglary and having a weapon under disability, according to the indictment.
Roane and Jackson are charged with four counts of making false statements during the purchase of a firearm. Jackson falsely represented that she was the buyer of four firearms – a Savage Arms 5.56 rifle, a Glock 9 mm pistol, a Taurus 9 mm pistol and a Radical Firearms 5.56 pistol – between August 2017 and January 2019, when, in fact, Roane was the true buyer of the firearms, according to the indictment.
Bailey is charged with being a felon in possession of a firearm. Bailey had a 9 mm pistol and 16 rounds of ammunition on March 20, 2019, despite previous convictions for burglary and tampering with evidence, according to the indictment.
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 cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Toledo Police Department and the Federal Bureau of Investigation. They are being prosecuted by Assistant U.S. Attorneys Matthew Simko, Robert Melching and Ashley Futrell.
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.
Dominican National Sentenced for Fentanyl DistributionRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for his role in a conspiracy to distribute fentanyl.
Sergio Manuel Lara-Suarez, a/k/a Sergio Manuel Lara-Juarez, 42, a Dominican national residing in Lawrence, was sentenced by U.S. District Court Judge Indira Talwani to 57 months in prison and five years of supervised release. Lara-Suarez will be subject to deportation proceedings upon completion of his sentence. In February 2019, Lara-Suarez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and multiple additional fentanyl distribution offenses, including distribution of more than 40 grams of fentanyl. Lara-Suarez has been in state custody since August 2018.
Between September 2017 and March 2018, Lara-Suarez and others conspired to distribute significant quantities of fentanyl or a mixture containing both fentanyl and heroin to undercover law enforcement officers. During that period, Lara-Suarez met with undercover agents on 11 separate occasions and sold them substances containing fentanyl that totaled over 430 grams.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Assistant U.S. Attorney Craig Estes of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Dominican National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to illegally reentering the United States after being deported.
Jonathan Manuel Lara Troncoso, 32, a Dominican National residing in Lawrence, pleaded guilty to one count of illegal reentry of a deported alien. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Aug. 15, 2019.
Lara Troncoso was convicted in Essex County under an alias of fentanyl trafficking and sentenced to three-to-five years in state prison. When he began his sentence, his fingerprints were taken and matched the prints on file for his true identity, which were taken when he was ordered deported in June 2006.
Lara Troncoso faces a sentence of no greater than two years in prison, up to one year of supervised release, and a fine of up to $250,000. He will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Marcos D. Charles, Acting Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston, made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit is prosecuting the case.
Celina Physician Arrested on Federal Drug Distribution Charges While Preparing to Leave the United StatesRead the Press Release
NASHVILLE, Tenn. – May 17, 2019 – Gilbert Ross Ghearing, 65, of Livingston, Tennessee, a physician and owner of a family medical practice in Celina, Tennessee, was charged this morning in a criminal complaint with violating the Controlled Substances Act, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Ghearing was arrested at his practice in Celina, Tennessee this morning by federal agents and transported to Nashville to appear before a U.S. Magistrate Judge.
According to the complaint, Ghearing owns and operates a medical clinic in Celina, Tennessee and also provides medical services at other locations in Clay and Fentress Counties. The complaint alleges that between August 2016 and February 2019, Ghearing repeatedly violated the Controlled Substances Act by prescribing Schedule II and Schedule IV drugs, including benzodiazepines and opiates, outside the usual course of practice and not for a legitimate medical purpose.
The complaint details allegations of prescribing these drugs to patients who exhibited a high potential for abuse and had a past medical history of abuse, including multiple instances of overdoses. The complaint also alleges that Ghearing prescribed combinations of benzodiazepines and opiates, despite a warning issued by the U.S. Food & Drug Administration that combined use of these drugs results in serious side effects, including death.
Records filed with the Court also reflect that on May 15, 2019, Ghearing, while under investigation for federal offenses, booked a flight to depart on May 19, 2019, with a final destination to the Marshall Islands.
U.S. Magistrate Judge Alistair Newbern ordered Ghearing detained this afternoon, pending a detention and preliminary hearing on May 22, 2019.
If convicted, Ghearing faces up to 20 years in prison and a $1 million fine.
This case is being investigated by the Drug Enforcement Administration; U.S. Department of Health & Human Services-Office of Inspector General; and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Sarah Bogni is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Canadian Man Pleads Guilty to Attempting to Illegally Export Firearms from the U.S. to Dubai and ColumbiaRead 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 Aydan Sin, a/k/a Hon Chak Gordon Sin, a/k/a Andy, a/k/a Bullion, 47, of British Columbia, CA, pleaded guilty before U.S. District Judge Richard J. Arcara to violating the Arms Export Control Act. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between November 2016 and April 2017, the defendant conspired with others, including Guy Deland, a/k/a Mark, a/k/a Security Prime, and Charan Singh, a/k/a Charlie, a/k/a Sunny, to export defense articles on the United States Munitions List (USML) in violation of United States law.
In November 2016, Singh began communicating with an undercover law enforcement agent (UCA), inquiring about whether the UCA could export firearms from the United States to the United Arab Emirates. During the communications, Sin, Deland, and Singh were advised by the UCA that a license was required from the United States Department of State in order to legally export the firearms. The defendants acknowledged the illegality of the attempted exports, provided an encrypted Blackberry device to the UCA for the purpose of secure, covert communications, and wired approximately $70,000 USD from Canada to the United States as a 50% down payment for the export of the goods.
On December 7, 2016, Sin, through telephone and email, requested the gun order include 9mm handguns and Uzi machine guns. On December 9, 2016, Sin told the UCA that rather than get an export license, he wanted the UCA to export the firearms “the wrong way.”
Subsequently, on January 10, 2017, the UCA emailed two revised invoices to Sin and Deland. One invoice was for the export to Dubai of three new Glock 9mm firearms, six magazines, two used Mini Uzi submachine guns, two suppressors, and 1,000 rounds of 9mm ammunition for the firearms, for a total cost of $20,575. The second invoice was for the export to Colombia (thru Panama) of 37 new Glock 9mm firearms, 74 magazines, 13 used Mini Uzi submachine guns, 13 suppressors, and 3,000 rounds of 9mm ammunition for the firearms, for a total cost of $121,175. Both invoices contained language stating that exporting these products was prohibited by law without an export license.
On February 6 and 7, 2017, an undercover bank account, located in the Western District of New York, received two bank wire transfers from a bank account in Canada, each in the amount of $34,990 USD, representing 50% of the total purchase price of the firearms, suppressors, and ammunition.
On March 10, 2017, Sin contacted the UCA and asked if the shipment of guns to Columbia would occur in a few days. On March 20, 2017, the UCA used existing sea freight shipment tracking numbers and told Sin and Deland that the firearms, suppressors, and ammunition were shipped to Jebel Ali, United Arab Emirates, and the shipment of guns to Columbia would occur on March 29, 2017. The UCA also provided them with the tracking information.
The firearms, suppressors, magazines, and ammunitions listed above are defense articles listed on the USML. Prior to the attempted export and export of these defense items from the United States, Sin was aware that an export license was required and at no time did he, or the actual exporter apply for, receive, or possess a license to export the items from the United States.
“The Arms Export Control Act was enacted to keep our country and our citizens safe and secure from the threat of the illicit trafficking of firearms,” said U.S. Attorney Kennedy. “When our safety and security are compromised by individuals such as this defendant, it threatens to destabilize the national security of our country, which in turn puts American citizens at risk. It is our duty to be vigilant in enforcing the laws designed to protect our national security.”
“HSI vigorously investigates criminal organizations that attempt to illegally export firearms, firearm parts, munitions, and sensitive technology to protect American citizens, our warfighters and our allies,” said Special Agent-in-Charge Kevin Kelly. “Counter-proliferation investigations are among HSI's top priorities to ensure that those who put our country at risk are brought to justice.”
Charges remain pending against defendants Guy Deland and Charan Singh. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by Homeland Security investigations, under the direction of Special Agent-in-Charge Kevin Kelly. Additional assistance was provided by the Royal Canadian Mounted Police.
Sentencing is scheduled for August 26, 2019, at 12:30 p.m. before Judge Arcara.
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California Man Sentenced to 7 Years in Federal Prison for Fentanyl Trafficking OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OMAR VILLARREAL, 27, of La Puente, California, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 84 months of imprisonment, followed by three years of supervised release, for fentanyl trafficking offenses.
According to court documents and statements made in court, on December 21, 2016, law enforcement officers stopped a tractor-trailer on Route 34 in Derby. A search of the cab of the tractor-trailer revealed a box that contained 25 kilograms of fentanyl. The driver of the vehicle, Erick Crespo-Escalante, was placed under arrest. Investigators learned that Crespo-Escalante was delivering the shipment of fentanyl to a location in Waterbury.
The investigation revealed that, in October 2016, Villarreal traveled from California to Connecticut to oversee the shipment of the narcotics to Connecticut. Villarreal took up residence in Waterbury for approximately one month to coordinate the delivery and established a “stash” location in Waterbury to which the shipment could be delivered. After returning to California, Villarreal engaged in multiple phone calls with Crespo-Escalante to arrange the delivery via tractor-trailer to Connecticut.
Villarreal has been detained since his arrest on May 15, 2017. On August 30, 2018, he pleaded guilty to one count of aiding and abetting the possession of fentanyl with intent to distribute, and one count of traveling in interstate commerce to promote an unlawful activity.
On April 4, 2017, Crespo-Escalante pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, fentanyl. On April 3, 2019, he was sentenced to 30 months of imprisonment. Crespo-Escalante, a citizen of Mexico and lawful permanent resident of the U.S., faces immigration proceedings when he is released from prison.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, which includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments. The case was prosecuted by Assistant U.S. Attorney Dave Vatti.
Burlington Man Sentenced to Prison for Production of Child PornographyRead the Press Release
DAVENPORT, IA – On May 16, 2019, Kristin Daniel Horn, age 40, of Burlington, Iowa, was sentenced by United States District Court Chief Judge John A. Jarvey to 360 months imprisonment, after pleading guilty to Production of Child Pornography, announced United States Attorney Marc Krickbaum. Horn was ordered to serve ten years on supervised release to follow his prison term and pay $100 to the Crime Victims’ Compensation Fund.
This sentence was ordered to be served consecutively to a sentence of up to ten years for a conviction in Des Moines County, Iowa, for Sexual Abuse, Third Degree. Horn was convicted on May 19, 2014, and his sentence was discharged for that offense on July 5, 2018.
Horn pleaded guilty to the offense on January 16, 2019. Upon execution of a search warrant on Horn’s residence, officers recovered videos depicting child pornography produced by Horn. These videos were produced in February 2013.
This matter was investigated by Federal Bureau of Investigation and the Burlington Police Department. The case was prosecuted by the United States Attorney’s Office-Southern District of Iowa.
Buffalo Man Sentenced for Cyberstalking the Mother of His ChildrenRead 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 Mark Bieniek, 45, of Buffalo, NY, who was convicted of cyberstalking, was sentenced to serve 41 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that the defendant and Victim 1 were once partners and had children together. On April 25, 2017, Victim 1 received an order of protection against Bieniek, prohibiting the defendant from communication with Victim 1, except as permitted by order of a family or Supreme Court.
Between January 25, 2018, and February 19, 2018, Bieniek resided in North Richland Hills, Texas, while Victim 1 resided in Erie County, NY. In violation of the order of protection during this period, the defendant sent several hundred electronic messages to Victim 1 with the intent to kill, injure, harass, intimidate, or cause substantial emotional distress to Victim 1 or to place Victim 1 in reasonable fear of the death of or serious injury to herself or her partner, Victim 2. Among the messages:
• “I got [Victim 2]..” “I may spend the rest of my life in prison. But it’ll be worth it…I can’t wait to see him…Texas has lots and lots of pawnshops”
• “Hi [Victim 2]! Looking forward to meeting you…My brother killed someone…so can I (expletive)”
• “I like the pictures you posted. I’m coming fir you [Victim 2]. Now I know exactly what you look like. I’ll see you soon.” “(Expletives) I’m going to murder your boyfriend while you watch.”
• Images of the defendant holding an object resembling a black pistol along with the message, “It’s time [Victim 1]. I’m going to let you make the decision.”
• Photos of the outside of Victim 1’s place of employment with the message, “I’m wondering…Are you planning on coming out?”
• “I am here and I will get you. Maybe tonight I’ll just torch the place or ill wait to see the looks on your faces.”
• “see i paid a lot to put this whole plan together and i sawed off the end of my attitude adjuster. i have patience. be sure to look over your shoulder mother fucker because there will be dead bodies when I’m thru. Starting with your face getting a few slugs.”
• “I have nothing left [Victim 1]. You took it all. Idc what i have to do. You will hear my cries.” “I have two things i must do. Get you. No matter what. Then get myself.”
• “I know that you are alone and scared up there.”
• “I can feel the the hate for me. I can smell your fear.” “Fear.”
• “[Victim 2] you and [Victim 1] are going to die”, “Tomorrow”, “I promise you this sir”, “You are both dead”
• I SWEAR ON MY MOTHER CAROLS LAST BREATH IF SHE WERE TO ASK ME HER LAST DYING WISH TO NOT DO ANYTHING TO HURT OR SCARE YOU...LIKE SHE HAS BEFORE BUT YOU DONT CARE. IF SHE ASKED ME FOR THAT ONE LAST WISH BEFORE SHE TOOK HER LAST BREATH I'D LOOK HER IN HER EYES AND TELL HER I CANNOT CAN NOT GIVE YOU THIS WISH.The defendant has a history of domestic violence-related conduct towards Victim 1. On December 17, 2011, he was arrested for assaulting, including choking and kicking, Victim 1 with intent to cause physical injury. As a result, Victim 1 feared death or serious injury to herself and Victim 2 and suffered substantial emotional distress.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, with assistance from the FBI in Fort Worth, Texas.
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Bozeman man sentenced to 16 years on child porn, cyberstalking crimesRead the Press Release
MISSOULA—Bozeman resident Jamie Brock Grubb, who admitted receiving and distributing sexually explicit images of a minor girl and cyberstalking the victim, was sentenced to 16 years in prison on May 16, U.S. Attorney Kurt Alme said.
Grubb, 31, also was sentenced to 20 years of supervised release and ordered to pay $50,000 restitution.
Grubb pleaded guilty in January to a total of 10 counts, including seven counts of distribution of child porn, transportation of child porn, cyberstalking and interception of wire, oral and electronic communications.
Chief U.S. District Judge Dana L. Christensen presided.
Prosecutors said in court documents that in 2011, Grubb was in a relationship with a minor girl and took sexually explicit images of her. While a minor, the girl also took sexually images of herself and sent them electronically to Grubb. Grubb then distributed those images on different websites without the victim’s knowledge from 2015 to 2017.
Gallatin County Sheriff’s Office detectives served search warrants for Grubb’s email account and determined that he had transported the sexually explicit images and a video of the victim by emailing them to himself.
Detectives also analyzed the victim’s smart phone and other smart phones in Grubb’s possession and determined Grubb had placed spytracker software on the victim’s phone without her knowledge. There was evidence of the same software on Grubb’s phone. Detectives also found that Grubb had intercepted the victim’s communications, finding audio recordings of the victim’s phone calls with third parties on his phone.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by Montana Probation and Parole, the Gallatin County Sheriff’s Office and Homeland Security Investigations and the Internet Crimes Against Children Task Force.
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Baton Rouge Doctor Sentenced to Prison for Fraudulent Billing SchemeRead the Press Release
A Baton Rouge, Louisiana-based doctor was sentenced to 37 months in prison followed by two years of supervised release today for his role in a scheme to defraud Medicare and other health care insurers.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office and Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office made the announcement.
John Eastham Clark, M.D., 66, of Baton Rouge, was sentenced by Chief U.S. District Judge Shelly D. Dick of the Middle District of Louisiana, who also ordered Clark to pay $254,962.80 in restitution. In February 2019, Clark pleaded guilty to one count of conspiracy to commit health care fraud.
Clark was a co-owner and the medical director of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge. The charge stems from Clark’s role in a scheme to submit fraudulent claims to Medicare and other health care insurers. As part of his guilty plea, Clark admitted that from approximately June 2005 through March 2015, he, along with his billing supervisor Charlene Anita Severio and others, conspired to submit fraudulent claims indicating that minor surgical procedures occurred on days subsequent to office visits, when in fact the office visits and procedures took place on the same day. Clark admitted that this practice, commonly referred to as “unbundling,” was done to defraud health care insurers for non-reimbursable office visits. Clark further admitted to falsifying, and directing Severio and others to falsify, records substantiating the fraudulent claims.
In February 2019, Severio pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud and two counts of health care fraud. She is scheduled to be sentenced on May 22 by Chief Judge Dick.
In another case involving Louisiana Spine & Sports, on Nov. 20, 2018, Gray Wesley Barrow, M.D., a co-owner of the company, pleaded guilty for his role in a scheme to receive approximately $336,000 in illegal health care kickback payments. Barrow is scheduled to be sentenced on June 7, 2019, by U.S. District Judge Brian A. Jackson of the Middle District of Louisiana. In addition, Christopher William Armstrong, a former physician’s assistant at Louisiana Spine & Sports, pleaded guilty on Nov. 27, 2018 for his role in a scheme to unlawfully distribute thousands of oxycodone pills. Armstrong is scheduled to be sentenced on June 24, 2019, by U.S. District Judge John W. deGravelles of the Middle District of Louisiana.
The case was investigated by HHS-OIG and the FBI, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the Middle District of Louisiana are prosecuting the case.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, 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.
Bardstown Man Sentenced to 135 months for Armed Drug TraffickingRead the Press Release
LEXINGTON, Ky. — Michael Steven Lyvers, 41, of Bardstown, Kentucky, was sentenced today, to 135 months in federal prison, by United States District Judge Karen K. Caldwell, for possession with intent to distribute Methamphetamine and possession of a firearm in furtherance of drug trafficking.
In March 2018, detectives with the Lexington Police Department received information that Michael Lyvers was distributing methamphetamine from the Days Inn. During the investigation, officers located 491 grams of methamphetamine, a small amount of heroin and cocaine, and a .380 handgun. During his guilty plea, Lyvers admitted to the distribution of methamphetamine and to possessing the firearm for protection during his drug trafficking.
Under federal law, Stackhouse must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge of the ATF; and Lawrence Weathers, Chief of the Lexington Police Department jointly made the announcement.
The ATF and the Lexington Police Department conducted the investigation. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Avondale Woman Charged with Conspiracy to Commit Mail FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that PENNY JOHNSON, age 52, of Avondale, Louisiana, was charged by the Grand Jury with one count of conspiracy to commit mail fraud and seven counts of mail fraud.
According to the charging document, JOHNSON participated in a “work at home” re-shipping scam wherein internet fraudsters would direct items purchased from sellers such as eBay to JOHNSON’s residence. As part of the scheme, JOHNSON would then inspect the contents and re-ship the mail and other packages to the fraudsters. Prior to the Indictment, JOHNSON had been advised by United States Postal inspectors that she was facilitating a fraud upon eBay and other online customers, but she persisted. JOHNSON went on to make false statements to the inspectors when she was later questioned after the first warning.
JOHNSON faces a sentence of up to five (5) years in prison on the conspiracy count and up to twenty (20) years in prison for each mail fraud count. She also is facing up to $250,000 in fines, and up to three (3) years of supervised release.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service for their investigation of the matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
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Attorney General William P. Barr Announces Creation of the State and Local Law Enforcement Coordination SectionRead the Press Release
WASHINGTON – On May 2, 2019, Attorney General William P. Barr approved the creation of the State and Local Law Enforcement Coordination Section (SLEC-S) within the Office of Legislative Affairs. As of June 3, 2019, the SLEC-S will be responsible for ensuring that Department leadership is properly informed of state and local law enforcement’s top priorities, while working to ensure that the Department has an impactful presence within the state and local law enforcement community. SLEC-S will serve as the primary liaison with state and local law enforcement, and all supporting entities.
“State, local, and federal law enforcement officers are all a part of the same team," Attorney General William P. Barr said. "The events of Police Week serve as a powerful reminder that the vast majority of this team serves on the front lines — at the state and local levels. In order to further strengthen the Department of Justice's relationships with our state and local law enforcement partners, I am pleased to announce that the Department has established a State and Local Law Enforcement Coordination Section. This new Section will have primary responsibility for maintaining relationships with law enforcement throughout the country and will ensure that Department leadership maintains an active and ongoing dialogue with our law enforcement partners as we work together to develop policies designed to keep our country safe and secure.”
The SLEC-S will begin by developing a strategic plan for direct engagement between the Department and the state and local law enforcement community. The Section will work to ensure that the Department is represented at all relevant conferences and forums and that there is direct and timely outreach to survivors of fallen officers. The Section will also support Department components on relevant legislative and policy issues affecting local law enforcement partners. The Section will coordinate with the Department’s Intergovernmental and Public Liaison, who will continue to work with state Attorneys General and other state and local elected officials, and will include members from law enforcement components within the Department of Justice.
Armed Bank Robbers Sentenced to Federal PrisonRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Ryan Newell, 31, and Cory Woods, 29, both of Columbia, were sentenced to federal prison for their roles in armed bank robberies. Newell was sentenced to over 24 years in federal prison after pleading guilty to three armed bank robberies and corresponding firearm offenses. Woods was sentenced to over nine years in federal prison after pleading guilty to single armed bank robbery and firearm offenses.
Evidence presented to the Court showed both Newell and Woods were responsible for three armed takeovers and robberies of banks located in the Midlands of South Carolina. On January 24, 2018, Woods and Newell stole over $33,000 from a First Citizens bank in Columbia. The second robbery occurred at a TD Bank in Irmo on February 24, 2018, where Newell and Woods stole over $17,000. The final robbery occurred on March 5, 2018, at a Wells Fargo in Chapin. In the final robbery, Newell and Woods stole over $28,000, then left the bank and took law enforcement on a high speed chase down I-26. Ultimately, Newell and Woods crashed into the median and were arrested.
Senior United States District Judge Terry L. Wooten of Columbia sentenced Ryan Newell to 298 months in federal prison, to be followed by a 5-year term of court-ordered supervision. Judge Wooten sentenced Cory Woods to 108 months in federal prison, to be followed by a 5-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Federal Bureau of Investigation, the Lexington County Sheriff’s Office, the Richland County Sheriff’s Office, the Chapin Police Department, the Irmo Police Department, and the Columbia Police Department.
Assistant United States Attorney William Camden Lewis of the Columbia office prosecuted the case.
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Another Heads to Prison for Operation “Tres Equis”Read the Press Release
LAREDO, Texas – A 34-year-old Laredoan is now the 23rd defendant to be headed to federal prison following his conviction of money laundering, announced U.S. Attorney Ryan K. Patrick.
A federal jury convicted Daniel Laurel June 15, 2018, for having successfully laundered drug proceeds for the Romero Drug Trafficking Organization (DTO) by operating a funnel account and recruiting other Laredoans to do the same.
Late Friday, May 17, 2019, U.S. District Judge Diana Saldana ordered him to prison for 151 months for money laundering conspiracy and money laundering concealment. As part of his sentence, Laurel also received a $285,500 money judgment or forfeiture of funds involved in his money laundering
The DTO used Laurel’s bank account and those of his recruits to funnel drug proceeds from various geographic locations, such as Florida, Pennsylvania, North Carolina, New York and Georgia for immediate withdrawal in Laredo. Once the proceeds were withdrawn, they were provided to other Laredo co-conspirators and often taken into Mexico to leaders of the organization. convictions.
Laurel is one of several persons identified through a long term Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Tres Equis. These co-conspirators engaged in a scheme to distribute cocaine, methamphetamine, heroin and fentanyl through the use the U.S. Postal Service or other means such as Federal Express. They also used various U.S. bank accounts to transfer drug proceeds from distribution hub cities to cities along the Mexican border, including Laredo, and to places outside the United States, including Mexico and Ecuador.
The 22 others sentenced include Antonio Romero Jr., 32, of Orlando, Florida, who occupied a leadership position in the DTO and received a 292-month sentence. The other prison sentences ranges from 12-210 months based on their roles in the organization. Two others received probation. As part of their respective sentences, most people received a hefty money judgment or forfeiture of funds involved or traceable to drug trafficking which ranged from $1000 to $1.08 million. Additionally, non-U.S. citizen defendants are expected to face deportation proceedings and possible cancellation or denial of any previously granted visa or legal residency status.
The Drug Enforcement Administration and IRS – Criminal Investigation conducted the OCDETF investigation. Also providing assistance was the U.S. Marshals Service, Laredo Police Department, sheriff’s offices in Webb and Zapata Counties, Webb County District Attorney’s Office, Border Patrol and the Texas Department of Public Safety.
Assistant U.S. Attorney Graciela R. Lindberg prosecuted the case.
Allen Man Sentenced for False StatementRead the Press Release
United States Attorney Ron Parsons announced that an Allen, South Dakota, man convicted of False Statement was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Nathaniel “Thomas” Waters, age 46, was sentenced on May 16, 2019, to time served of 6 months, 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Waters was indicted for the charge by a federal grand jury in January 2018. The charge related to Waters making false statements to law enforcement regarding the fire and homicide of his nephew at Waters’ residence at Allen on October 16, 2017. Waters eventually admitted that his previous statements were false and that he lied during the prior interviews.
This case was investigated by the Bureau of Indian Affairs - Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Megan Poppen and Ben Patterson prosecuted the case.
Ali Kourani Convicted in Manhattan Federal Court for Covert Terrorist Activities on Behalf of Hizballah’s Islamic Jihad OrganizationRead the Press Release
Yesterday, a jury returned a guilty verdict against Ali Kourani, a.k.a. “Ali Mohamad Kourani,” a.k.a. “Jacob Lewis,” a.k.a. “Daniel,” on all eight counts in the Indictment, which charged him with terrorism, sanctions and immigration offenses for his illicit work as an operative for Hizballah’s external attack-planning component. Kourani is scheduled to be sentenced on Sept. 27, 2019, by the Honorable Alvin K. Hellerstein, who presided over the eight-day trial. Assistant Attorney General for National Security John C. Demers, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, Assistant Director Michael McGarrity of the FBI’s Counterterrorism Division and Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office made the announcement.
“While living in the United States, Kourani served as an operative of Hizballah in order to help the foreign terrorist organization prepare for potential future attacks against the United States,” said Assistant Attorney General Demers. “The evidence at trial showed that Kourani searched for suppliers who could provide weapons for such attacks, identified people who could be recruited or targeted for violence, and gathered information about and conducted surveillance of potential targets within our country. Such covert activities conducted on U.S. soil are a clear threat to our national security and I applaud the agents, analysts, and prosecutors who are responsible for this investigation and prosecution.”
“Ali Kourani was recruited, trained and deployed by Hizballah’s Islamic Jihad Organization to plan and execute acts of terrorism in the United States,” said U.S. Attorney Berman. “Kourani’s chilling mission was to help procure weapons and gather intelligence about potential targets in the U.S. for future Hizballah terrorist attacks. Some of the targets Kourani surveilled included JFK Airport and law enforcement facilities in New York City, including the federal building at 26 Federal Plaza in Manhattan. Today, Kourani has fittingly been convicted for his crimes in a courthouse that stands in the shadow of one of his potential targets.”
“This case shows Hizballah’s Islamic Jihad Organization is a threat to the American people and not just to those living abroad,” said FBI Assistant Director McGarrity. “The IJO enlisted Kourani to help plan an attack on high profile U.S. locations where many people could have been killed or injured. Thanks to the New York Joint Terrorism Task Force his plans were not carried out.”
As reflected in the criminal Complaint, Indictment, and the evidence presented at trial:
Hizballah is a Lebanon-based Shia Islamic organization with political, social, and terrorist components that was founded in the 1980s with support from Iran. Since Hizballah’s formation, the organization has been responsible for numerous terrorist attacks that have killed hundreds, including United States citizens and military personnel. In 1997, the U.S. Department of State designated Hizballah a Foreign Terrorist Organization, pursuant to Section 219 of the Immigration and Nationality Act, and it remains so designated today. In 2010, State Department officials described Hizballah as the most technically capable terrorist group in the world, and a continued security threat to the United States.
The Islamic Jihad Organization (IJO), which is also known as the External Security Organization and “910,” is a highly compartmentalized component of Hizballah responsible for the planning, preparation, and execution of intelligence, counterintelligence, and terrorist activities on behalf of Hizballah outside of Lebanon. In July 2012, an IJO operative detonated explosives on a bus transporting Israeli tourists in the vicinity of an airport in Burgas, Bulgaria, killing six people and injuring 32 others. Law enforcement authorities have disrupted several other IJO attack-planning operations around the world, including the arrest of an IJO operative surveilling Israeli targets in Cyprus in 2012, the seizure of bomb-making precursor chemicals in Thailand in 2012, including chemicals manufactured by a medical devices company based in Guangzhou, China (Guangzhou Company-1), and a similar seizure of chemicals manufactured by Guangzhou Company-1 in Cyprus in May 2015 in connection with the arrest of another IJO operative.
Kourani, who was born in Lebanon, attended Hizballah-sponsored weapons training in Lebanon in 2000 when he was approximately 16 years old. After lawfully entering the United States in 2003, Kourani obtained a Bachelor of Science in biomedical engineering in 2009, and a Masters of Business Administration in 2013.
Kourani and certain of his relatives were in Lebanon during the summer 2006 conflict between Israel and Hizballah, when a residence belonging to his family was destroyed. At some point by 2008, IJO recruited Kourani to its ranks. In August 2008, Kourani submitted an application for naturalization in the United States in which he falsely claimed, among other things, that he was not affiliated with a terrorist organization. In April 2009, Kourani became a naturalized citizen and was issued a United States passport. Despite claiming in his passport application that he had no travel plans, Kourani traveled to Guangzhou, China – the location of Guangzhou Company-1 – on May 3, 2009. He later claimed to the FBI that the purpose of the trip was to meet with medical device manufacturers and other businessmen.
IJO assigned Kourani an IJO handler, or mentor, responsible for providing him with taskings, debriefings, and arranging training. Kourani sometimes communicated with his handler using coded email communications, including messages sent by the handler that informed Kourani of the need to return to Lebanon. In order to establish contact with his handler when Kourani returned to Lebanon, Kourani called a telephone number associated with a pager (the IJO Pager) and provided a code that he understood was specific to him. After contacting the IJO Pager, the handler would contact Kourani to set up an in-person meeting by calling a phone belonging to one of Kourani’s relatives. The IJO also provided Kourani with additional training in tradecraft, weapons, and tactics. In 2011, for example, Kourani attended a weapons training camp in the vicinity of Birkat Jabrur, Lebanon, where he used a rocket propelled grenade launcher, an AK-47 assault rifle, an MP5 submachine gun, a PKS machine gun (a Russian-made belt-fed weapon) and a Glock pistol.
Based on other taskings from IJO personnel, which IJO personnel conveyed during periodic in-person meetings when Kourani returned to Lebanon, Kourani conducted operations, which he understood to be aimed at preparing for potential future Hizballah attacks. These covert activities included searching for weapons suppliers in the United States who could provide firearms to support IJO operations; identifying individuals affiliated with the Israeli Defense Force whom the IJO could either recruit or target for violence; gathering information regarding operations and security at airports in the United States and elsewhere, including JFK International Airport in New York; and surveilling U.S. military and law enforcement facilities in New York City, including the federal building at 26 Federal Plaza in Manhattan. Kourani transmitted some of the products of his surveillance and intelligence-gathering efforts back to IJO personnel in Lebanon using digital storage media.
Kourani, 34, of the Bronx, New York, was convicted of providing material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; conspiracy to provide material support and resources to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; receiving military-type training from a designated foreign terrorist organization, which carries a sentence of 10 years in prison or a fine; conspiracy to receive military-type training from a designated foreign terrorist organization, which carries a maximum sentence of five years in prison; conspiracy to possess, carry, and use firearms and destructive devices during and in relation to crimes of violence, which carries a maximum sentence of life in prison; making and receiving a contribution of funds, goods, and services to and from Hizballah, in violation of IEEPA, which carries a maximum sentence of 20 years in prison; conspiracy to make and receive a contribution of funds, goods, and services to and from Hizballah, in violation of IEEPA, which carries a maximum sentence of 20 years in prison; and naturalization fraud in connection with an act of international terrorism, which carries a maximum sentence of 25 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the defendant’s sentence will be determined by Judge Hellerstein.
Mr. Demers and Mr. Berman praised the outstanding efforts of the FBI’s 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 U.S. Attorneys Emil J. Bove III and Amanda L. Houle are in charge of the case, with assistance from Trial Attorney Bridget Behling of the Counterterrorism Section.
Agency Village Man Charged with Assault with Intent to Commit MurderRead the Press Release
United States Attorney Ron Parsons announced that an Agency Village, South Dakota, man has been indicted by a federal grand jury for assault with intent to commit murder, assault with a dangerous weapon, and assault resulting in serious bodily injury.
John Matthew Pilcher, age 48, was indicted on March 5, 2019. He appeared before U.S. Magistrate Judge William Gerdes on May 13, 2019, and pled not guilty to the Indictment.
According to the Indictment, on or about the 10th day of November 2018, Pilcher assaulted the victim with a dangerous weapon, namely a knife or a sharp-edged object, with the intent to commit murder, and the assault did result in serious bodily injury.
The maximum penalties upon conviction for each count are as follows: 20 years and 10 years of imprisonment and/or a $250,000 fine; a mandatory minimum term of five (3) years of supervised release; $100 special assessment for victim/witness fund; and restitution may be ordered.
The charges are merely accusations and Pilcher is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Pilcher was remanded to the custody of the U.S. Marshals Service. A trial date of June 25, 2019, has been set.