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15 May 2019
Louisiana Pharmacist Convicted of Trafficking and Dispensing Stolen HIV MedicationRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that U.S. District Judge Lance M. Africk sentenced ALVIN WATTS, III, a 37-year-old resident of Addis, Louisiana, to 108 months in federal prison for his conviction after a 2-day jury trial on a multiple count indictment. All counts involved stolen HIV medication, and included WATTS’ conspiracy to possess, transport, and traffic in the medication; trafficking and transporting the stolen medication; and receiving and possessing stolen medication.
As the evidence at trial demonstrated, WATTS was a co-owner and pharmacist of Doc-Your-Dose Pharmacy in Grosse Tete, Louisiana. In 2013, WATTS organized a scheme to purchase black market HIV pharmaceutical drugs that had been stolen from the Washington, D.C. Department of Health Pharmacy Warehouse intended for indigent HIV patients in Washington, D.C. WATTS sent two of his employees to D.C. on multiple occasions between June and September of 2013 to purchase the stolen medication and transport it back to his Louisiana pharmacy. As a result, WATTS profited approximately $640,000.00 by dispensing the stolen medication, as opposed to selling legally-obtained medication.
WATTS’ criminal conduct became known as the result of a traffic stop near Chattanooga, Tennessee, in which his couriers were stopped for speeding. During the stop, officers discovered a significant quantity of stolen HIV medication in the trunk of their vehicle. The investigation identified WATTS’ criminal conduct along with the conduct of four co-conspirators who were indicted and subsequently pled guilty for their involvement in this scheme and have been sentenced.
During today’s hearing, Judge Africk highlighted WATTS’ greed, extreme depravity in selling stolen HIV medications that were intended for indigent HIV patients in the D.C. area, and the fact that he obstructed justice in attempting to prevent a government witness from testifying.
U.S. Attorney Fremin stated, “Medical professionals like the defendant cannot be allowed to profit by dispensing stolen medication intended for indigent patients. The actions of this defendant are a great disservice to the pharmacists and medical professionals in our community who ensure that patients’ well-being is their highest priority. I commend the superb efforts of prosecutors and federal and state local law enforcement partners who played a critical role in investigating and prosecuting this complex and important matter.”
“The health of patients is jeopardized when prescription drugs are diverted from the legal supply chain. When this happens, there is no longer any assurance that the products are safe and effective for their intended uses,” said Acting Special Agent in Charge H. Peter Kuehl, FDA Office of Criminal Investigations Miami Field Office. “We will continue to investigate these types of criminal acts and bring to justice those who put the public health at risk.
“I applaud my Medicaid Fraud Control Unit and our federal law enforcement partners for their efforts to end this criminal conspiracy,” said Attorney General Landry. “We will remain steadfast in our commitment to find, arrest, and prosecute Medicaid fraudsters.”
This matter was investigated by the United States Food And Drug Administration’s Office of Criminal Investigations and Louisiana State Attorney General’s Office’s Medicaid Fraud Control Unit, with assistance from the State of Tennessee 10th Judicial District Drug & Violent Crime Task Force. The case was prosecuted by Assistant United States Attorneys Peter Smyczek and Paul Pugliese.
Lincoln Man Convicted of Methamphetamine ChargesRead the Press Release
United States Attorney Joe Kelly announced that on May 15, 2019, Sabas Rodriguez-Cisneros, 47, of Lincoln, Nebraska, was convicted by a federal jury of conspiracy to distribute and possess with intent to distribute methamphetamine. The trial began in federal court in Lincoln on Monday, May 13, 2019, before Chief United States District Judge John M. Gerrard.
In early March, 2018, a DHL package was intercepted by United States Customs and Border Control agents at the Cincinnati, Ohio, port of entry. The package was addressed to Rodriguez-Cisneros’s girlfriend in Lincoln, Nebraska. Customs agents opened the package and found suspected methamphetamine and pills. Homeland Security Investigations agents sent the package to their Omaha office, and Omaha HSI agents delivered it to the Lincoln/Lancaster County Drug Task Force. On March 5, 2018, an undercover Lincoln Police officer delivered the package to Rodriguez-Cisneros’s girlfriend in Lincoln, and she was arrested. The Nebraska State Patrol Crime Laboratory found the package contained 400 grams of substance containing methamphetamine. Purity analysis showed at least 370 grams of actual (pure) methamphetamine. There were also 197 full fentanyl tablets in the package.
Testimony and evidence presented at trial established that between October of 2016 and March 5, 2018, Rodriguez-Cisneros and several other persons were involved in the sale of methamphetamine in the Lincoln, Dwight, and Crete, Nebraska areas. The jury found Rodriguez-Cisneros responsible for at least 50 grams, (approximately 1 ¾ ounces), of methamphetamine actual (pure) and at least 500 grams, (approximately 18 ounces), of methamphetamine mixture.
Sentencing is scheduled for August 16, 2019. Rodriguez-Cisneros faces a possible sentence of not less than 10 years nor more than life imprisonment and a fine of up to $10,000,000.
This case was investigated by the Lincoln/Lancaster County Drug Task Force, the Nebraska State Patrol, Homeland Security Investigations, and U.S. Customs and Border Patrol.
Liberian Man Convicted of Making False StatementsRead the Press Release
SYRACUSE, NEW YORK –Augustine Sneh, age 31, a Liberian citizen living in Philadelphia, Pennsylvania, was convicted yesterday after a 2-day trial of making a false statement and making a false claim of United States citizenship.
The announcement was made by United States Attorney Grant C. Jaquith and Steven Bronson, Area Port Director, United States Custom and Border Protection (CBP).
Trial evidence showed that on October 16, 2018, Sneh was denied admission into Canada at the Saint Bernard de LaColle, Quebec Port of Entry. Due to the Canadian refusal, Sneh was required to report to the Champlain Port of Entry, New York. During immigration inspection at the Champlain Port of Entry, Sneh stated that he was a United States citizen born in Philadelphia. Sneh is in fact a citizen of Liberia, born in Liberia, and he is not a United States citizen. Sneh entered the United States in 2000, has resided here since 2000, and is the subject of an unexecuted removal order from February 2012.
Sneh faces up to 5 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States District Judge Norman A. Mordue on September 16, 2019. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by CBP and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Laurel County Man Sentenced to 162 Months for Armed KidnappingRead the Press Release
LONDON, Ky. — Robert “Bobby” Hurley, III, 25, of London, was sentenced today, to 162 months in federal prison, by United States District Judge Claria Horn Boom, for kidnapping and the use of a firearm in furtherance of a crime of violence.
Hurley pled guilty to these charges in April of 2018. According to the plea agreement, the victim in the case was accused of stealing money from a local drug dealer that Hurley frequented. Hurley decided to locate and kidnap the victim, as a means of currying favor with the drug dealer. Hurley located the victim in the East Bernstadt area of Laurel County, approached the victim, and struck the victim in the back of the head with a shotgun. Hurley then ordered the victim to get into a waiting vehicle, at gunpoint. Hurley then directed the driver – an acquaintance of Hurley’s – to drive the three to the drug dealer’s residence, in Pulaski County.
Once there, Hurley and a codefendant, directed the victim to exit the vehicle and go in the back door. Hurley walked behind the victim with the shotgun. Once inside, Hurley and the codefendant bound the victim’s hands and feet and put duct tape over his mouth. The two men then placed the victim in a chair and began questioning him over the alleged theft of money. A third accomplice assisted in the questioning. While this was occurring, Hurley struck the victim in the head with the shotgun several times. Hurley and his two codefendants took turns interrogating and assaulting the victim. The victim was ultimately released after falsely confessing to the theft.
“The defendant’s possession of a firearm in furtherance of brutal acts of violence, including kidnapping and assault, warranted the significant sentence imposed by the Court,” said United States Attorney Robert M. Duncan, Jr. “I commend the efforts of law enforcement in the investigation of this case, leading to a successful prosecution that removed a violent offender from the community.”
“This violent defendant threatened the safety of our Eastern Kentucky communities,” stated ATF Special Agent in Charge Stuart Lowrey of the Louisville Field Division. “ATF is committed to working with our law enforcement partners by providing investigative resources that lead to arrests and successful prosecutions of dangerous criminal offenders.”
Under federal law, Hurley 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.
U.S. Attorney Duncan; Special Agent in Charge Lowrey; and Richard Sanders, Commissioner of the Kentucky State Police, jointly made the announcement.
The investigation was conducted by the ATF and Kentucky State Police. The United States was represented by Assistant United States Attorney W. Samuel Dotson.
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.
Las Vegas Man Sentenced to 24 Years for Armed Robberies of Bank and Two Jewelry StoresRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 24 years in prison for robbing a bank at gunpoint and for two jewelry store armed robberies while he was on supervised release, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Deandre Nakita Brown, 36, previously pleaded guilty to two counts of interference with commerce by robbery and one count of bank robbery. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced him to 3 years of supervised release.
According to admissions made in his plea agreement, on August 1, 2016, Brown, armed with a firearm, ran directly to and jumped over the cashier counter at a bank located at West Craig Rd. He yelled, “Everyone hit the floor!” He pointed his handgun at three employees demanding money. He stole a total of $17,862 from the bank. Brown was completing his sentence at the Residential Re-entry Center on his 2009 federal conviction for Brandishing a Firearm in Relation to a Crime of Violence when he committed this offense.
On January 3, 2017, Brown and co-conspirators Aquail Harris and Brian Wright robbed a jewelry store located at N. Rainbow Blvd in northwest Las Vegas. Brown and Harris entered the store pointing their firearms at employees and customers, including two young children, and forcing them to their knees. Harris physically removed the security guard’s firearm and the robbers took the firearm along with the stolen jewelry. The two gunmen delivered the stolen jewelry and watches valued at over $850,000 to the getaway vehicle driven by two additional co-conspirators, Kendareen Hudson and Safiyyah Christopher.
Ten days later, on January 13, Brown, Wright and co-defendants Carl Whitley and Randy Jerousek robbed a jewelry store located at W. Charleston Blvd in the Summerlin area of Las Vegas. Brown entered the store pointing a gun at employees and directing them to fill garbage bags with jewelry and watches. Approximately $765,000 worth of jewelry was stolen. Brown fled in a getaway vehicle driven by co-conspirator Randy Jerousek. Brown was on federal supervision relating to his 2009 conviction at the time that he committed the two jewelry store robberies.
Harris and Wright were also on federal supervised release at the time that they planned and committed the jewelry store robberies with Brown.
Co-defendants Christopher, Hudson, Jerousek, and Whitley, all pleaded guilty for their involvement in the armed robberies. Wright was convicted by a jury and sentenced to 27 years in prison for his role in the jewelry store robberies.
Brown’s 2009 conviction arose from his armed robbery of an Albertsons grocery store. Brown was previously convicted in 2005 for robbing a series of five banks around Las Vegas.
The case was investigated by the FBI’s Safe Streets Task Force and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Alexandra Michael, Nadia Ahmed, and Lisa Cartier-Giroux prosecuted the case.
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Kershaw Man Sentenced to 20 Years in Federal Prison on Drug and Gun ChargesRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon announced today that Ike Joel Mitchell, age 33, of Kershaw County, South Carolina, was sentenced in federal court after pleading guilty to two counts of possession with the intent to distribute crack cocaine, methamphetamine, heroin, and marijuana; two counts of being a felon in possession of a firearm; and one count of possession of a firearm in furtherance of a drug trafficking crime. Senior United States District Judge Terry L. Wooten of Columbia sentenced Mitchell to 240 months in federal prison, to be followed by a 10-year term of court-ordered supervision and a special assessment of $500. There is no parole in the federal system.
Evidence presented to the court established that on June 4, 2017, the Camden Police Department located Mitchell sitting in the driver’s seat of a parked car at a local shopping center. Mitchell had an outstanding arrest warrant in their jurisdiction. Mitchell was asked to step out of the car. Under the front driver’s seat, the police found a .22 caliber handgun with one round of .22 caliber ammunition in it. They also found a green book bag that contained marijuana, crack cocaine, methamphetamine, and a digital scale. Mitchell was arrested but was later released on bond.
On September 20, 2017, Mitchell was indicted federally on drug and gun charges and remained a fugitive until January 25, 2018. On that date, the U.S. Marshals Fugitive Task Force and Kershaw County Sheriff’s Department learned that Mitchell was at a local Kershaw County hotel. As officers approached the hotel, they saw him walking with a female while talking on his cell phone. In his hand, multiple officers saw him carrying a grey plastic bag. As Mitchell saw the police, he tried to run through the breezeway of the hotel but stopped and returned to where he was initially seen. He was arrested. Officers found on him two keys for the hotel, a .38 caliber handgun, marijuana, and roughly $600 dollars.
The officers found the grey plastic bag that Mitchell had discarded and discovered it contained heroin, crack cocaine, methamphetamine, and two unopened bottles of a codeine mixture.
The officers also used the room keys found on Mitchell and searched the hotel room. Under one of the beds, they found a blue book bag containing methamphetamine, a .357 caliber handgun, and a mason jar containing heroin; and a black book bag containing eight additional unopened bottles of the codeine mixture.
Federal law prohibits Mitchell from possessing a firearm as a result of prior convictions for possession with the intent to distribute cocaine and distribution of cocaine base.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Kershaw County Sheriff's Office, and Camden Police Department. Assistant United States Attorneys William K. Witherspoon and Christopher Taylor of the Columbia office prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Jury Convicts Portland Drug TraffickerRead the Press Release
PORTLAND, Ore.—A federal jury in Portland returned guilty verdicts today against a Portland man who was accused of distributing large quantities of methamphetamine throughout Multnomah County, Oregon.
Amadeo Lupercio-Quezada, 39, was convicted after a two-day trial of conspiring to possess within intent to distribute methamphetamine; possessing with intent to distribute methamphetamine, heroin and cocaine; and possessing a firearm in furtherance of a drug trafficking crime.
According to court documents and information entered at trial, in October 2017, a Gresham Police detective learned that Lupercio-Quezada and co-defendant Maribel Sebastian-Evangelista were distributing large amounts of methamphetamine throughout Multnomah County. Lupercio-Quezada would physically complete the sales after Sebastian-Evangelista would arrange deals by phone. Thereafter, the detective and other members of the Gresham Police Department Special Enforcement Team initiated four controlled purchases of methamphetamine from Lupercio-Quezada and Sebastian-Evangelista between October and December 2017.
All four controlled purchases took place at Lupercio-Quezada’s residence on E. Burnside Street in Portland and resulted in the officers successfully purchasing ounce quantities of methamphetamine. Officers later searched the residence pursuant to a state search warrant and found distribution quantities of methamphetamine, heroin and cocaine, an ID card with Lupercio-Quezada’s photo, $14,500 in cash as well as a .380 caliber Glock model 42 semi-automatic pistol located near the drugs.
Lupercio-Quezada faces a maximum sentence of life in prison with consecutive mandatory minimum sentences of 10 and 5 years for the drug and gun charges, respectively; a $250,000 fine and a life term of supervised release. He will be sentenced on August 21, 2019 before U.S. District Court Judge Michael W. Mosman.
This case was investigated by the Gresham Police Department Special Enforcement Team and was prosecuted by Kemp L. Strickland and Sarah Barr, Assistant U.S. Attorneys for the District of Oregon.
Jury Convicts KC Man of Illegal Firearms, StalkingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was convicted by a federal trial jury today of illegally possessing firearms, including purchasing firearms advertised on the internet, and of stalking two female victims associated with massage parlors in Kansas.
Robert J. Gross, 67, of Kansas City, was found guilty of two counts of stalking victims across state lines, three counts of being a felon in possession of a firearm, and three counts of receiving a firearm while under indictment.
Gross was under investigation in 2017 for destroying property and harassing and stalking women associated with massage parlors in Kansas, which led to him being placed under surveillance by law enforcement. While under surveillance in December 2017, Gross purchased handcuffs and other items from a surplus store, visited a gun show twice, and purchased two shotguns from a private seller advertising on the internet.
On Oct. 1, 2017, Gross visited two Olathe, Kan., massage parlors – A+ Health Massage and Alpha Massage – but was told to leave because he was asking for inappropriate sexual favors. He then went to Tea Spa Massage in Lawrence, Kan., where he paid for a massage. When Gross took all his clothes off, the masseuse told him she wouldn’t do anything sexual and he was told to leave the business. She called the manager, who also managed the other two businesses in Olathe. Video surveillance depicts Gross walking around the business completely naked, harassing and threatening the masseuse. The video also shows Gross grabbing and groping her. She left the store and flagged down a passing man for assistance in getting Gross out of the business. Gross then got dressed and left the business.
The manager told investigators that she saw Gross driving through the residential neighborhood where she lived on the same day.
Law enforcement investigators began surveillance of Gross after these incidents.
On Dec. 2, 2017, officers saw Gross purchase four sets of handcuffs, two black shirts with “SECURITY” written on them with badges on the front, and two balaclavas (a garment used to conceal facial identity) from a surplus store in Kansas City, Kan. The manager of the business told investigators that Gross had purchased two sets of handcuffs the week before.
On Dec. 16, 2017, officers saw Gross inquiring about the purchase of firearms at the Kansas City Gun Show located at the KCI Expo Center. Gross picked up and handled a 9mm Velocity “Uzi”-type firearm at one of the booths. The dealer at the booth told investigators that Gross, who approached his booth multiple times throughout the day, had asked about purchasing up to three firearms. The next day, Gross visited the gun show again and was seen inquiring about the purchase of firearms. Gross visited a different booth, where he picked up a Smith and Wesson 9mm handgun.
At that time, Gross was a convicted felon and also under indictment in the state of Kansas for aggravated sexual battery. Under federal law, it is illegal for anyone who has been convicted of a felony, or who is under indictment, to be in possession of any firearm or ammunition. Gross has prior felony convictions for possession with intent to distribute cocaine and making terroristic threats to a former girlfriend.
On Dec. 22, 2017, Gross returned to the surplus store in Kansas City, Kan., and was observed purchasing four more sets of handcuffs and a balaclava. Gross also asked about purchasing a bulletproof vest.
On Dec. 22, 2017, officers observed Gross purchase two shotguns from an individual in the parking lot of the Lowe’s Home Improvement store in Liberty, Mo. Gross first drove to the Pizza Ranch parking lot, where he removed the license plate from the front of his car. The rear license plate had been removed as well. Then Gross drove to the nearby Lowe’s store, where he was met by an individual driving a white pickup truck. The unidentified individual sold Gross two shotguns, which he handed to Gross from his truck. As Gross was putting two shotguns in the trunk of his car, officers arrested him for being a felon in possession of firearms.
The individual who sold the shotguns to Gross told investigators that Gross called him the day before, after seeing the Savage 12-gauge shotgun and Winchester 12-gauge shotgun advertised for sale on a website. Gross told him he wanted to buy the two shotguns for $350 and they arranged to meet at Lowe’s to conduct the sale.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately two hours before returning the guilty verdict to U.S. District Judge Gary A. Fenner, ending a trial that began Monday, May 13, 2019.
Under federal statutes, Gross is subject to a sentence of up to 55 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant 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 United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Jess Michaelsen and Alison D. Dunning, with cooperation from the Platte County, Mo., Prosecutor’s Office. It was investigated by the FBI, the Independence, Mo., Police Department, the Kansas City, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Olathe, Kan., Police Department, the Lawrence, Kan., Police Department, and the Douglas County, Mo., Sheriff’s Department.
Jury Convicts Columbus Man of Six Drug CrimesRead the Press Release
COLUMBUS, Ohio – A jury has convicted Glenn Marcell Madison, Jr., 29, of Columbus, on all counts following a two-day trial before U.S. District Judge James L. Graham.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Dallas Baldwin and Columbus Interim Chief of Police Thomas A. Quinlan announced the verdict returned yesterday evening.
Madison, also known as “Monster,” was indicted in October 2018 and May 2019 and charged with six drug-related crimes.
He was convicted of two counts of distributing cocaine, one count of distributing heroin and one count of distributing methamphetamine; each are crimes punishable by up to 20 years in prison. Madison was also convicted of two counts of distributing 50 grams or more of methamphetamine, which carries a potential sentence of five to 40 years in prison.
U.S. Attorney Glassman commended the cooperative investigation by the Columbus Division of Police and Franklin County Sheriff’s Office, as well as Assistant United States Attorneys Kevin W. Kelley and Noah R. Litton, who are representing the United States in this case.
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Jury Convicts Beaverton Man for Assaulting Federal Task Force Officers with Explosive DeviceRead the Press Release
PORTLAND, Ore.—A federal jury in Portland returned guilty verdicts today against a Beaverton, Oregon man who detonated an improvised explosive device containing triacetone triperoxide (TATP), assaulting two members of the Portland Joint Terrorism Task Force (JTTF) on October 11, 2017.
Jason Paul Schaefer, 27, was convicted after a six-day trial of two counts of assaulting a federal officer and one count each of carrying and using a destructive device during and in relation to a crime of violence, carrying and using an explosive during the commission of a federal felony, unlawful transport of explosive materials, possession of an unregistered destructive device and being a felon in possession of explosives.
“Without the hard work and dedication of the JTTF agents and partners who pursued and investigated Mr. Schaefer, he might still be on the street furthering his deadly pursuits. We are extremely fortunate that Mr. Schaefer did not succeed in his attempt to take the lives of two JTTF officers in October 2017,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “This case affirms the critical work of our law enforcement partners on the JTTF in keeping Oregon communities safe.”
“Our JTTF agents and task force partners put their lives on the line every day for the people of Oregon,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “Mr. Schaefer made a series of choices that led to his encounter with law enforcement on that day. He alone is responsible for the physical harm that both he and the responding task force officer suffered. Today's verdict is just and will help ensure the safety of the community in the future.”
“The Oregon State Police is proud of the collaboration among our local and federal partners on the JTTF, with our mutual goal to keep Oregon safe. We are grateful that our troopers and taskforce officers were not seriously injured during this rapidly developing event. OSP is also appreciative of the time and attention of the U.S. Attorney's Office to seek justice in this case,” said Travis Hampton, Superintendent of the Oregon State Police.
“The Washington County Sheriff’s Office would like to thank the U.S. Attorney’s Office, the JTTF and partnering agencies for their hard work in this investigation. We value these important public safety partnerships that work tirelessly to keep our communities safe,” said Pat Garrett, Washington County Sheriff.
According to court documents and evidence presented at trial, on or about September 21, 2017, FBI Portland determined that Schaefer had purchased several items that could be used to make a bomb. Schaefer was known to federal investigators after an April 2017 incident where he threatened to kill his landlords and used mercury to deter people from entering an apartment garage he rented in Beaverton. The incident led to Schaefer being arrested and prosecuted for illegally possessing body armor.
On October 11, 2017, federal agents and task force officers executed a search warrant on Schaefer’s Beaverton apartment. Schaefer arrived that morning at a meeting with his probation officer to find two federal agents there to meet him. They notified Schaefer of the warrant and asked if his property was booby trapped. Schaeffer told the agents that it was not and the search commenced.
After a brief conversation with the agents, Schaefer departed in a white sport utility vehicle. The agents followed Schaefer, but lost him. Meanwhile, agents searching Schaefer’s apartment found several explosive precursors and electronic matches. While the search was ongoing, Schaefer returned to the apartment and threatened a task force officer before fleeing.
Two task force officers pursued Schaefer who soon got stuck in traffic. The officers approached Schaefer on foot and ordered him out of the vehicle. Schaefer did not comply, threatened to kill the officers and ignited an explosive device concealed in a cigarette pack. The blast caused significant injury to Schaefer’s hand and sent debris flying into one of the officers, who suffered bodily injury. Following the explosion, Schaefer was arrested and officers found a second cigarette pack containing explosives in his vehicle.
Schaefer faces a maximum sentence of life in prison with a 30-year mandatory minimum. He will be sentenced on August 13, 2019 before U.S. District Court Judge Marco A. Hernandez.
This case was prosecuted by the U.S. Attorney’s Office for the District of Oregon. It was investigated by the Portland JTTF. The Portland JTTF includes FBI special agents and more than a dozen state and local law enforcement officers.
Jamaican National Sentenced for Conspiracy to Commit Mail and Wire FraudRead the Press Release
U.S. Attorney Peter G. Strasser announced that ALEX SAUNDERS, age 25, a resident of Jamaica and former student athlete at Southern University in New Orleans, was sentenced today for his role in a conspiracy to commit mail and wire fraud.
According to court documents, in or before August 2013, and continuing through December 2015, SAUNDERS and others operated a scheme to contact elderly individuals and people with diminished capacity. The scheme involved contacting victims by telephone through Voice over Internet Protocol (“VoIP”) and informing them that they had won a lottery and needed to pay SAUNDERS and others monies by cash, check, wire, or other methods in order to claim their lottery winnings.
After receiving victims’ funds through United States mail, private mail carrier, or through an electronic transfer, SAUNDERS, and other co-conspirators known and unknown to the United States Attorney, with knowledge that the money they received was obtained through false and fraudulent pretenses, did knowingly and intentionally transfer the stolen money to bank accounts in Jamaica.
SAUNDERS was sentenced to 5 years probation and is ordered to pay restitution in the amount of $56,300.
U.S. Attorney Strasser praised the work of the United States Postal Service, Office of Inspector General, United States Secret Service, and the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Sharan E. Lieberman was in charge of the prosecution.
Indictments Returned Targeting East Bay Drug Trafficking RingsRead the Press Release
SAN FRANCISCO – Thirteen defendants were indicted on narcotics trafficking charges, announced United States Attorney David L. Anderson and Drug Enforcement Administration (DEA) Special Agent in Charge Chris D. Nielsen. The indictment follows the arrest of five of the defendants on April 30, 2019, and the execution of search warrants at thirteen locations, including nine residences in Contra Costa County, Humboldt County, Fairfield, Suisun City and Modesto.
All thirteen defendants were charged in a single indictment which charges controlled substance offenses involving methamphetamine, heroin, fentanyl, cocaine and cocaine base. The defendants and the charges pending against them are as follows:
Defendant
Age
Residence
Charges
Maximum Statutory Penalty
LORENZO LEE, a/k/a “O.G.”
66
Antioch, California
Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)
21 U.S.C. § 846
Not less than 10 years imprisonment and up to life
Not less than 5 years supervised release and up to life
$10 million fine
Distribution of and Possession with Intent to Distribute Controlled Substances, Including Cocaine, Cocaine Base, Methamphetamine, and Heroin (Counts 4, 7, and 13-15)
21 U.S.C. § 841(a)(1)
Not less than 10 years imprisonment and up to life
Not less than 5 years supervised release and up to life
$10 million fine
JEFFREY MCCOY
46
Pittsburg, California
Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)
21 U.S.C. § 846
Not less than 5 years imprisonment and up to 40 years imprisonment
Not less than 4 years supervised release and up to life
$5 million fine
Distribution of Controlled Substances, Including Cocaine Base, Cocaine, and Heroin (Counts 2-7 and 9)
21 U.S.C. § 841(a)(1)
Not less than 5 years imprisonment and up to 40 years imprisonment
Not less than 4 years supervised release and up to life
$5 million fine
ANTHONY BROWN, a/k/a “Ant Man”
57
Bay Point, California
Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)
21 U.S.C. § 846
Not less than 5 years imprisonment and up to 40 years imprisonment
Not less than 4 years supervised release and up to life
$5 million fine
Distribution of Cocaine Base
21 U.S.C. § 841(a)(1) (Count 7)
Not less than 5 years imprisonment and up to 40 years imprisonment
Not less than 4 years supervised release and up to life
$5 million fine
DESHAWNTE GAMBOA
38
Pittsburg, California
Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)
21 U.S.C. § 846
Not less than 5 years imprisonment and up to 40 years imprisonment
Not less than 4 years supervised release and up to life
$5 million fine
Distribution of Heroin (Count 9)
21 U.S.C. § 841(a)(1)
Not less than 5 years imprisonment and up to 40 years imprisonment
Not less than 4 years supervised release and up to life
$5 million fine
DEBORAH POLK
63
Antioch, California
Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)
21 U.S.C. § 846
Not less than 5 years imprisonment and up to 40 years imprisonment
Not less than 4 years supervised release and up to life
$5 million fine
Possession with Intent to Distribute Heroin (Count 15)
21 U.S.C. § 841(a)(1)
Not less than 5 years imprisonment and up to 40 years imprisonment
Not less than 4 years supervised release and up to life
$5 million fine
Maintaining a Drug-Involved Premises (Count 16)
21 U.S.C. § 856(a)(2)
20 years imprisonment
3 years supervised release
$500,000 fine
EVAN MARTINEZ-DIAZ
26
Bay Point, California
Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)
21 U.S.C. § 846
Not less than 10 years imprisonment and up to life
Not less than 5 years supervised release and up to life
$10 million fine
Possession with Intent to Distribute Methamphetamine and Cocaine (Counts 13 and 14)
21 U.S.C. § 841(a)(1)
Not less than 10 years imprisonment and up to life
Not less than 5 years supervised release and up to life
$10 million fine
MAGO AGUILAR-PACHECO
38
West Covina, California
Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)
21 U.S.C. § 846
Not less than 5 years imprisonment and up to 40 years imprisonment
Not less than 4 years supervised release and up to life
$5 million fine
CESAR ALVARADO
38
Desert Springs, California
Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)
21 U.S.C. § 846
Not less than 10 years imprisonment and up to life
Not less than 5 years supervised release and up to life
$10 million fine
Possession with Intent to Distribute Cocaine, Heroin, and Methamphetamine (Counts 11-14)
21 U.S.C. § 841(a)(1)
Not less than 10 years imprisonment and up to life
Not less than 5 years supervised release and up to life
$10 million fine
JESSE LOPEZ, III
30
Fowler, California
Possession with Intent to Distribute Fentanyl (Count 8)
21 U.S.C. § 841(a)(1)
Not less than 10 years imprisonment and up to life
Not less than 5 years supervised release and up to life
$10 million fine
JOSE DELGADILLO, a/k/a “Tepa”
41
Fairfield, California
Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Counts 1 and 10)
21 U.S.C. § 846
Not less than 10 years imprisonment and up to life
Not less than 5 years supervised release and up to life
$10 million fine
MARCO DELGADILLO, a/k/a “Tonio”
39
Fairfield, California
Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 10)
21 U.S.C. § 846
Not less than 10 years imprisonment and up to life
Not less than 5 years supervised release and up to life
$10 million fine
LUIS TORRES-GARCIA, a/k/a “Guero”
33
Rio Dell, California
Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 10)
21 U.S.C. § 846
Not less than 10 years imprisonment and up to life
Not less than 5 years supervised release and up to life
$10 million fine
TIMOTHY PEOPLES, a/k/a “Tee”
40
Antioch, California
Possession with Intent to Distribute Cocaine and Cocaine Base (Counts 17 and 18)
21 U.S.C. § 841(a)(1)
Not less than 5 years imprisonment and up to 40 years imprisonment
Not less than 4 years supervised release and up to life
$5 million fine
The defendants arrested on April 30, 2019, were originally charged by complaint. The complaints have been unsealed. Eight defendants were charged in complaints that were supported by an affidavit describing the underlying investigation (the Affidavit). In addition, a separate complaint was filed against defendant Timothy Peoples, and that complaint has been unsealed as well.
According to the Affidavit, this investigation started in 2017 and involved the DEA, the United States Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Antioch Police Department, Oakley Police Department, and Concord Police Department. In 2017 and 2018, the investigators used informants to conduct a series of purchases of cocaine, cocaine base and heroin from JEFFREY MCCOY. In furtherance of their investigation, the agents also obtained federal wiretap orders in 2018 and 2019 to monitor communications over telephones used by the conspirators.
According to the Affidavit, the agents also seized significant quantities of narcotics from various defendants during the investigation. The following chart summarizes the seizures, which are discussed in more detail in the Affidavit:
DATE
SEIZED
CIRCUMSTANCES
5/15/2018
4 kg of heroin mixed with fentanyl and $46,000
Seized from courier after leaving LEE’s residence
8/8/2018
18 lbs of methamphetamine
Seized en route to TORRES-GARCIA from Jose DELGADILLO
1/26/2019
2 kg of cocaine
Seized en route to meeting point with LEE
2/9/2019
7 kg of narcotics and $104,505
Seized from courier after leaving LEE’s residence
2/9/2019
20 lbs of methamphetamine and 1 kg of cocaine
Discarded from courier’s vehicle after leaving LEE’s residence
In addition, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case was investigated and prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Indiana Man Sentenced to 18 Months in Prison for Posting Online Threats of Violence at Women’s Reproductive ClinicsRead the Press Release
CHICAGO — An Indiana man has been sentenced to 18 months in federal prison for threatening to commit violence at women’s reproductive health services clinics in Chicago and northwest Indiana.
LUKE DANIEL WIERSMA, 35, of Dyer, Ind., pleaded guilty last year to posting online threats of violence on at least seven occasions in October and November of 2017. Wiersma submitted the threats through the clinics’ websites. The clinic in Chicago provided reproductive health services, while the clinic in Hammond, Ind., provided counseling services related to women’s reproductive health.
U.S. District Judge Manish S. Shah imposed the sentence Tuesday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The Indianapolis, Ind., Field Office of the FBI and the Dyer, Ind., Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorneys Kelly M. Greening and Georgia N. Alexakis.
“The defendant’s transmission of numerous death threats to the Chicago clinic and the Hammond clinic is an extraordinarily serious offense that threatens public safety and terrorizes both medical communities and the women who utilize reproductive health clinics,” Assistant U.S. Attorney Kelly M. Greening argued in the government’s sentencing memorandum. “These types of threats have a significant, lasting impact on the lives of many, including the employees and volunteers of the clinics and the patients who visit the clinics for medical care.”
In one of the threats transmitted to the Chicago clinic on Oct. 29, 2017, Wiersma stated, “I will do anything and everything to stop the unmitigated murders of fetuses. I will do anything to stop the atrocities committed by your clinic every minute of every day at your clinic. You are all pieces of [expletive] and I will kill to stop these atrocities. I will blow you up if I have to, burn the clinic down. I will do whatever is necessary I swear to God I will. After that you are in God’s hands and He will do His thing.”
Indiana Man Pleads Guilty to Child Pornography ChargeRead 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 Dakota Casey, 27, of Indiana, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to transportation of child pornography. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that on June 27, 2018, the defendant attempted to enter Canada from the United States using the Peace Bridge. On Casey’s cell phone were images of child pornography involving three minor victims. The defendant was refused entry into Canada. Casey and his cell phone were turned over to U.S. authorities at the Peace Bridge Port of Entry.
In addition, between 2017, and June 27, 2018, Casey communicated with minors under the age of 18 years of age via the internet. Knowing that each was under the age of 16, the defendant requested that four victims take and send him child pornography images of themselves. Some of the images Casey persuaded two of the victims to produce portrayed sadistic conduct. The defendant also sent a naked photo to two of the victims.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for October 24, 2019, at 11:00 a.m. before Judge Wolford.
# # # #
Guilty Verdict on All Counts in Trial of Physician Convicted for Defrauding the Government in Medicare SchemeRead the Press Release
VALDOSTA – A Valdosta doctor was found guilty of health care fraud following a seven-day trial in federal court, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. The verdict was announced late in the day yesterday, May 14, 2019, after the jury deliberated for approximately two hours. The trial for Dr. Douglas Moss, 58, of Valdosta, began Monday, May 6, 2019 before U.S. District Judge Hugh Lawson. Dr. Moss was found guilty on all seven counts that he was charged with: Conspiracy to Commit Health Care Fraud (Count 1) and Health Care Fraud (Counts 2-7). The defendant faces a maximum penalty of ten (10) years in prison, a $250,000 fine, or both, on each count. The sentencing date is scheduled for August 14, 2019, at 9:30 a.m. before Judge Lawson. There is no parole in the federal system.
Dr. Moss was a practicing physician at South Georgia Health Group, LLC, (SGHG) in Valdosta, Georgia, since July 16, 2002. Dr. Moss was also the Medical Director of four Heritage Health (which became Pruitt Health) facilities (Holly Hill Nursing Home, Valdosta Nursing Home, Lakehaven Nursing Home, and Crestwood Nursing Home) between January 2011 and May 2016, where he served as the attending physician for 80 percent of the residents at those facilities. Dr. Moss was also the Medical Director of Grant Medical Clinic in Valdosta, an after-hours clinic. Dr. Moss enlisted a co-conspirator, Shawn Tywon, who worked as a Physician’s Assistant (PA) in Dr. Moss’ practice. Mr. Tywon was indicted in this case, and entered a guilty plea to Conspiracy to Commit Health Care Fraud on April 11, 2019, before Judge Lawson. Sentencing for Mr. Tywon is scheduled for July 10, 2019. Mr. Tywon testified in the trial as a witness for the Government.
According to testimony and evidence presented at trial, Dr. Moss bilked the U.S. Government out of more than $2.5 million dollars by falsifying Medicare and Medicaid claims, either by billing for services he actually did not perform, or by utilizing his PA, Mr. Tywon, as an “extender” (a non-physician practitioner) to render services that were billed as if Dr. Moss had performed them himself, netting a larger reimbursement. The evidence showed that Dr. Moss routinely did not render the services he billed under his name, and even visited casinos during at least two periods of time when he submitted bills for services in Valdosta when he was actually in Las Vegas.
“Over a period of four years, Dr. Moss stole in excess of $2.5 million by fraudulently billing the U.S. Government for work he claimed to personally perform at the four nursing homes in Valdosta. The jury’s verdict makes it clear that the citizens of our district will not stand for defrauding the government,” said Charles “Charlie” Peeler, the US Attorney for the Middle District of Georgia. “I want to thank our law enforcement partners for their hard work.”
“Our Medicaid Fraud Control Division will remain vigilant in efforts to uncover fraud and abuse,” said Attorney General Chris Carr. “The case gave us an opportunity to work hand-in-hand with our federal partners at the U.S. Attorney’s Office for the Middle District of Georgia, and we are proud that our joint efforts led to this successful result.”
“The level of greed shown by Dr. Moss in this case is astounding, as he lined his pockets at the expense of our government funded healthcare programs,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Just as one example, Dr. Moss claimed to have seen 175 patients on one particular day, falsely billing Medicaid and Medicare for services that were never provided. Actions like this went on for over three years affecting every tax paying citizen, in particular, those who rely on federally funded programs for their health care needs.”
“Dr. Moss was convinced that defrauding taxpayers was his path to riches,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Instead he will pay a heavy price for his actions as we will work with our law enforcement partners to protect vital government health programs.”
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services – OIG. Assistant U.S. Attorneys Sonja Profit and Lyndie Freeman from the U.S. Attorney’s Office for the Middle District of Georgia, and Assistant Attorney General Jim Mooney from the Georgia’s Office of the Attorney General prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Greene County Felon Sentenced to 24 Months for Illegally Possessing a FirearmRead the Press Release
ALBANY, NEW YORK – Michael Greenholtz, age 24, of Cairo, New York, was sentenced today to 24 months in prison for illegally possessing a .22 caliber revolver as a prohibited person.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge Thomas J. McAvoy also sentenced Greenholtz to 3 years of supervised release, to begin following his term of imprisonment.
As part of his guilty plea, Greenholtz admitted that on July 31, 2018, he sold a .22 caliber revolver in Albany. Two prior state felony convictions for burglary prevented Greenholtz from legally possessing the firearm. Greenholtz has been in custody since his arrest on September 15, 2018.
This case was investigated by the FBI, its Capital District Safe Streets Gang Task Force, and the ATF, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Superior Resident Charged with Drug & Gun Crimes
Brian Kainu, 36, Superior, Wisconsin, is charged with two counts of distributing methamphetamine, one count of possessing 50 grams or more of methamphetamine with the intent to distribute, and one count of being a felon in possession of a firearm.
The indictment alleges that Kainu distributed methamphetamine on March 27 and April 2, 2019, and that on April 2, he possessed 50 grams or more of the drug with the intent to distribute. The fourth count of the indictment alleges that he possessed a .22 caliber revolver on April 2.
If convicted, Kainu faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison on the count alleging 50 grams or more of methamphetamine, a maximum of 20 years on each of the distribution counts, and 10 years on the felon in possession of a firearm count.
The charges against Kainu are the result of an investigation by the Superior Police Department, Douglas County Sheriff’s Office, Northwest Area Crime Unit, Duluth Police Department, and the Lake Superior Drug & Violent Crime Task Force. The prosecution of this case is being handled by Special Assistant U.S. Attorney Chadwick Elgersma.
Madison Man Charged with Distributing Heroin and Being a Felon in Possession of a Firearm
Sedale Lacey-Robinson, 27, Madison, Wisconsin, is charged with five counts of distributing heroin and with being a felon in possession of a firearm. The indictment alleges that on five occasions in March and April 2019, he distributed heroin, and that on April 11, 2019, he possessed a loaded .44 caliber revolver.
If convicted, Lacey-Robinson faces a maximum penalty of 20 years in federal prison on each heroin distribution count and 10 years on the felon in possession of a firearm count. The charges against him are the result of an investigation by Dane County Narcotics Task Force and Madison Police Department. The prosecution of this case is being handled by Assistant U.S. Attorney Rita M. Rumbelow.
Maryland Man Charged with Gun Crime
John K. Stroman, 31, Capitol Heights, Maryland, is charged with being a felon in possession of a firearm. The indictment alleges that on April 18, 2019, he possessed a loaded 9mm pistol.
If convicted, Stroman faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Wisconsin State Patrol; U.S. Marshals Fugitive Task Force; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Dane County Sheriff’s Office. The prosecution of this case is being handled by Assistant U.S. Attorney Rita M. Rumbelow.
The Kainu, Robinson, and Stroman indictments have been 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.
Pierce County Man Charged with Producing, Distributing & Possessing Child Pornography
Eric Kurrelmeyer, 31, Maiden Rock, Wisconsin, is charged with two counts of producing child pornography, one count of distributing child pornography, and one count of possessing child pornography.
The indictment alleges that on November 10, 2018, Kurrelmeyer twice used a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. The indictment alleges that he used a cellular phone to produce videos of the minor engaged in sexually explicit conduct.
The indictment further alleges that on December 28, 2018, Kurrelmeyer used a private Kik chat to distribute one of the videos he produced on November 10. In the fourth count, the indictment alleges that on December 28, he possessed a cellular phone containing visual depictions of child pornography, and that at least one of the depictions involved a minor who had not attained 12 years of age.
If convicted, Kurrelmeyer faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison on the production counts, a mandatory minimum of five years and a maximum of 20 years on the distribution count, and a maximum of 20 years on the possession count. The charges against him are the result of an investigation by the Federal Bureau of Investigation and Pierce County Sheriff’s Office. The prosecution of this case is being handled by Special Assistant U.S. Attorney Chadwick Elgersma.
Forrest County Man Sentenced to over 10 Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
Gulfport, Miss. – Samuel Lee Smith, 40, of Hattiesburg, was sentenced yesterday by Senior U.S. District Judge Keith Starrett to 130 months in federal prison, followed by five years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Smith was also ordered to pay a $5,000 fine.
In January and February 2017, the Bureau of Alcohol, Tobacco, Firearms and Explosives made three undercover purchases of highly pure methamphetamine or "ice" from Smith in Hattiesburg. In total, Smith sold 135.76 grams of pure methamphetamine to an informant. Smith has three prior felonies and was on state parole at the time of the offense.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Annette Williams.
Former Office Manager Sentenced to 51 Months for FraudRead the Press Release
Memphis, TN – A Tipton County woman has been sentenced to 51 months in federal prison for fraud. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, in 2017, Cynthia Shellenberger, 52, was hired by Dozertrax USA of Drummonds, Tennessee as an office manager/bookkeeper. Between May of 2017 and March of 2018, Shellenberger systematically defrauded the company of $164, 761 by using company funds to pay for her personal expenses. Company owners Ron and Sherry Clowes uncovered the fraud when Shellenberger was out of the office on sick leave.
On May 14, 2019, during the sentencing hearing before U.S. District Court Judge John Fowlkes Jr., Sherry Clowes informed the judge that due to the fraud, she and her husband are struggling to keep the company operating. Shellenberger has a lengthy history of theft and fraud convictions. Judge Fowlkes sentenced Shellenberger to 51 months' of imprisonment, followed by 3 years of supervised release. As a condition of her release, Shellenberger was ordered to make full restitution to the company.
U.S. Attorney D. Michael Dunavant said, "Financial fraud can happen anywhere, and can be devastating to local businesses. The defendant used her position of trust and authority to steal proceeds for her personal benefit, and her dishonesty has been exposed. We are pleased that justice has been achieved on behalf of the victims, and we commend the FBI and TCSO for their outstanding investigation in this disappointing case. Wherever fraud occurs in the Western District of Tennessee, this office will be prepared to hold offenders accountable."
The FBI and Tipton County Sheriff’s Office investigated this case.
Assistant U.S. Attorney David Pritchard prosecuted this case on behalf of the government.
Former Louisiana Corrections Officers Sentenced for Roles in a Conspiracy to Cover up Abuse of InmatesRead the Press Release
Two former corrections officers at the Richwood Correctional Center were sentenced today in U.S. District Court in Monroe, Louisiana, for their roles in a conspiracy to cover up the abuse of inmates by officers. The defendants -- Demario Shaffer, 34, of Delhi, Louisiana, and David Parker, 28, of Tallulah, Louisiana, previously pleaded guilty to conspiring to falsify documents with the intent to obstruct and influence the investigation of a matter within federal jurisdiction. According to the defendants’ plea agreements and admissions in court, Shaffer, Parker, and other officers sprayed a chemical agent directly in the faces and eyes of five inmates while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Following that abuse, the officers conspired to hide their conduct by submitting false reports.
Shaffer, who was a sergeant at the time, was sentenced to serve 15 months in prison, and Parker, a nonsupervisory officer, was sentenced to serve 21 months. Assistant Attorney General Eric Dreiband for the Civil Rights Division and U.S. Attorney for the Western District of Louisiana David C. Joseph made the announcement.
“Conspiring to cover up physical assault against an inmate is in blatant violation of federal law and the Department of Justice will hold violators accountable,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division will continue to enforce the laws that prohibit this type of misconduct.”
“Abuse of prisoners is illegal and tarnishes the reputation of those correctional officers who work hard every day to perform their duties with distinction and professionalism,” U.S. Attorney David C. Joseph stated. “To maintain the fairness and integrity of the American justice system, my office will hold accountable anyone who violates the civil rights of inmates or conspires to cover up the abuse of inmates under their custody.”
Two other officers, Roderick Douglas and Christopher Loring have also pleaded guilty and are scheduled for sentencing by U.S. District Judge Terry A. Doughty on June 5 and July 3.
Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office of the Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, prosecuted the case. The Monroe Division of the FBI investigated the case.
Former Louisiana Corrections Officers Sentenced for Roles in a Conspiracy to Cover up Abuse of InmatesRead the Press Release
MONROE, La. – Two former corrections officers at the Richwood Correctional Center were sentenced today in U.S. District Court in Monroe, Louisiana, for their roles in a conspiracy to cover up the abuse of inmates by officers. The defendants -- Demario Shaffer, 34, of Delhi, Louisiana, and David Parker, 28, of Tallulah, Louisiana, previously pleaded guilty to conspiring to falsify documents with the intent to obstruct and influence the investigation of a matter within federal jurisdiction. According to the defendants’ plea agreements and admissions in court, Shaffer, Parker, and other officers sprayed a chemical agent directly in the faces and eyes of five inmates while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Following that abuse, the officers conspired to hide their conduct by submitting false reports.
Shaffer, who was a sergeant at the time, was sentenced to serve 15 months in prison, and Parker, a nonsupervisory officer, was sentenced to serve 21 months. U.S. Attorney for the Western District of Louisiana David C. Joseph and Assistant Attorney General Eric Dreiband for the Civil Rights Division made the announcement.
“Abuse of prisoners is illegal and tarnishes the reputation of those correctional officers who work hard every day to perform their duties with distinction and professionalism,” Joseph stated. “To maintain the fairness and integrity of the American justice system, my office will hold accountable anyone who violates the civil rights of inmates or conspires to cover up the abuse of inmates under their custody.”
“Conspiring to cover up physical assault against an inmate is in blatant violation of federal law and the Department of Justice will hold violators accountable,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division will continue to enforce the laws that prohibit this type of misconduct.”
Two other officers, Roderick Douglas and Christopher Loring have also pleaded guilty and are scheduled for sentencing by U.S. District Judge Terry A. Doughty on June 5 and July 3.
Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office of the Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, prosecuted the case. The Monroe Division of the FBI investigated the case.
Former Houston Businessmen Sentenced for Fraudulently Taking over $5 MillionRead the Press Release
HOUSTON – Two men have been ordered to federal prison following their convictions for conspiracy to commit wire fraud involving a fraudulent invoice scheme, announced U.S. Attorney Ryan K. Patrick.
Larry Allen Page, 67, of Katy, and John A. Elsner, 53, formerly of Houston and now of Washington State, pleaded guilty Dec. 11, 2018, and Jan. 7, 2019, respectively.
Today, U.S. District Judge Nancy F. Atlas ordered Page to serve 15 months in federal prison and pay $5,467,532.54 in restitution to his victims. Two days prior, Elsner was sentenced to 51 months in prison and $5,579,532.54 in restitution. Both men will also be required to serve one and three years of supervised release, respectively, following their release from prison.
At Elsner’s hearing, the court heard that the scheme spanned four years and the amount in false invoices grew each year of the scheme. Judge Atlas noted that the length of and repetitive nature of the criminal conduct was a factor in the decision of how long to send each to prison.
Elsner and Page defrauded a business lender of more than $4 million and two investors of $1.5 million. Elsner ran the day-to-day operations of Logistical Solutions International Inc. (LSI) as general manager and president. Page was the vice president of Finance. Elsner was also a majority shareholder in LSI.
LSI provided corporations with logistical support and training services that facilitated the stay of international visitors on assignment to train, attend meetings and work outside their home country. LSI provided these services to the oil and gas industry in the Middle East. LSI financed their operations primarily through the factoring of the LSI’s invoices to their customers.
Elsner, on behalf of LSI, entered into a factoring agreement with a lending entity to purchase LSI’s accounts receivable at a discount. During the scheme, Page and Elsner knowingly sold falsified LSI invoices to the lender under the false pretense that LSI had completed the work described in the invoice and the invoice was a final invoice ready to be submitted to LSI’s customer. At the time the scheme to defraud collapsed, LSI’s debt to the factoring company for unpaid false invoices was $4,037,532.54.
Both Page and Elsner were allowed to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS - Criminal Investigation and the Secret Service conducted the investigation. in Houston. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Former Drug Diversion Officer Sentenced for Drug PossessionRead the Press Release
United States Attorney Joe Kelly announced that Christopher Kober, 46, was sentenced today in federal court for possession of Schedule II controlled substances. Magistrate Judge Susan M. Bazis sentenced Kober to two years’ probation.
Kober was employed by the Nebraska State Patrol and assigned to the DEA Drug Diversion Task Force. Included in his responsibilities with the Task Force was the collection of prescription drugs left at collection boxes meant to dispose of old and unused prescription drugs.
On March 17, 2017, officers were called to Kober’s residence in Bellevue, Nebraska. They recovered 1,800 pills of various dosage amounts. The pills and substances included Acetaminophen Hydrocodone Bitartrate; Oxycodone Hydrochloride; Acetaminophen Oxycodone; Morphine Sulfate and Fentanyl patches. All are Schedule II controlled substances. The pills had an estimated street value of $18,000. The pills were located in a bag with other personal belongings of Kober’s.
As part of his plea agreement and sentence, Kober must surrender his law enforcement certification, forego any administrative appeal of his termination from the Nebraska State Patrol, and not seek future employment in law enforcement.
This case was investigated by the Drug Enforcement Administration and the Bellevue Police Department.
Federal Jury Convicts Chief Executive Officer for Obstructing and Defrauding the IRS and Stealing Money from Employee Healthcare and 401(K) PlansRead the Press Release
DENVER – Riordan A. Maynard, age 50 of Centennial, was found guilty of corruptly impeding the administration of tax laws, conspiracy to defraud the United States, conspiracy to steal or embezzle employee benefit plan and healthcare funds, and theft or embezzlement in connection with healthcare following a seven day jury trial before U.S. District Court Judge Christine M. Arguello, announced United States Attorney Jason R. Dunn, IRS Criminal Investigation Special Agent in Charge Steven Osborne and U.S. Department of Labor Employee Benefits Security Administration Regional Director Jim Purcell. The federal jury returned its verdict yesterday afternoon.
According to court records and evidence presented at trial, Maynard served as the Chief Executive Officer of two communications technology companies located in Denver, Colorado, Touchbase USA (TBUSA) and its successor company Touchbase Global Services, Inc. (TBGSI). TBGSI offered a 401(k) savings plan to the employees of both TBGSI and TBUSA. Maynard conspired with a co-conspirator to steal funds that employees had directed TBGSI to withhold from their paychecks for 401(k) plans, and ultimately stole over $60,000 of 401(k) withholdings and used them for other TBGSI expenses.
TBGSI also claimed to offer a healthcare benefit program to TBGSI employees. In 2017, TBGSI claimed to contribute $600 per month to each participant’s premiums. Participants were responsible for the remainder of the premium cost. TBGSI automatically deducted the participant contribution from each participant’s paycheck. TBGSI was responsible for forwarding the full premium to the health insurance carrier. Maynard was convicted of stealing over $50,000 in funds that employees had withheld from their paychecks for their health insurance plans. Maynard then failed to pay for health insurance coverage. By June 2017, TBGSI owed over $100,000 to the health insurance carrier, which then terminated coverage for the employees. Numerous employee healthcare claims were denied.
TBUSA and TBGSI were also required to pay payroll taxes to the IRS. From early 2012 through September 2017, Maynard corruptly impeded the IRS’s attempts to collect these taxes. Maynard closed TBUSA and reopened it as TBGSI to avoid paying more than $2.5 million in unpaid payroll taxes owed to the IRS. TBGSI then ran up an additional unpaid payroll tax liability of over $2 million. Maynard transferred funds from business accounts to Maynard’s personal account to avoid IRS levies. And he conspired with a co-conspirator to falsely tell TBGSI customers that IRS levies they had received were in error, in an effort to prevent customers from sending money to the IRS.
“We thank the jury for their service in this case and appreciate the care in which they sorted through each of the 26 counts and more than 400 exhibits,” said United States Attorney Jason Dunn. “Economic crimes such as this are complicated, but thanks to the hard work of our law enforcement partners and our prosecutors, the result in this case will bring justice for the employees who were cheated of their benefits, as well as for the taxpayers.”
“Today’s verdict is a win for the employees of the companies Mr. Maynard used to steal their money and a win for the United States government. Corporate executives like Mr. Maynard have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS. Actions like Mr. Maynard’s result in the loss of tax revenue to the United States government and the loss of future social security or Medicare benefits for the employees," stated IRS Criminal Investigation Special Agent in Charge Steven Osborne.
“The prosecution of theft and embezzlement from employee benefit plans supports the Department of Labor’s mission to protect the rights of America’s workers, including the right to receive benefits earned through employer sponsored retirement and health benefit plans,” said Jim Purcell, Employee Benefits Security Administration’s Regional Director in Kansas City. “EBSA will continue to aggressively investigate such crimes on behalf of workers nationwide.”
Corruptly impeding administration of tax laws carries a penalty of not more than three years imprisonment and a fine of not more than $250,000 fine or two times the gain or loss. Conspiracy to defraud the United States carries a penalty of not more than five years imprisonment and a fine of not more than $250,000. Conspiracy to steal or embezzle an employee benefit plan carries a penalty of not more than five years imprisonment and not more than a $250,000 fine. Theft or embezzlement in connection with healthcare carries a penalty of not more than 10 years imprisonment and not more than a $250,000 fine.
Maynard is scheduled to be sentenced on August 12, 2019.
This matter was investigated by the Department of Labor Office of Inspector General, the Internal Review Service Criminal Investigation, and the Department of Labor’s Employee Benefits Security Administration. This matter is being prosecuted by Assistant U.S. Attorneys Rebecca S. Weber and Aaron M. Teitelbaum.
The indictment contains certain charges against a co-conspirator, who has not yet been tried. As to the co-conspirator, the charges in the indictment remain allegations.
Case No. 18-cr-395
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Eleven state fraud spree that targeted Kmart stores sends woman to prisonRead the Press Release
HELENA—A woman who stole approximately $219,980 from Kmart stores in 11 states, including Montana, was sentenced to prison and ordered to pay restitution, U.S. Attorney Kurt Alme said.
U.S. District Judge Sam E. Haddon sentenced Lynada Laticia Mahone, 40, of Chicago, IL, to 45 months in prison and to three years of supervised release. He also ordered $219,980 restitution. Mahone pleaded guilty to wire fraud in December 2018.
Court records filed by the prosecution said that Mahone, beginning in September 2017, went on a four-month fraud spree targeting Kmart stores in 11 states. Mahone stole $219,980 in 56 fraudulent transactions using what she claimed were checks from the federal food voucher program, Women, Infants and Children (WIC), a special supplemental nutrition program. After entering the stores, Mahone used the WIC checks at the teller stations because Kmart does not run them through the check verification process when an individual presents them to the store.
At the end of the day, however, Kmart realized the teller stations were short on money and that Mahone’s checks were fraudulent. By the time Kmart discovered the fraud, Mahone had already received the goods and gift cards and was long gone. Mahone often made multiple transactions at a single store if the scheme was successful.
Law enforcement arrested Mahone after she was at a Kmart in Tolleson, AZ. Mahone possessed various fake driver’s licenses in her purse.
The investigation also uncovered video surveillance images showing Mahone at Kmart stores throughout the country, including in Butte. Mahone also hit Kmarts in Glendive, Helena and Hamilton. Other states involved in the fraud were Wyoming, Idaho, Minnesota, Washington, Oregon, Texas, Oklahoma, Utah, Nevada and Arizona.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the FBI.
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Eight Defendants Arrested in Drug Conspiracy That Stretched from WNY to Puerto RicoRead 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 eight defendants have been arrested and charged with conspiracy to distribute cocaine, heroin and fentanyl which carries a mandatory minimum penalty of 10 years in prison, a maximum of life in prison and a $10,000,000 fine.
Named in the indictment are:
• Felix Calderon-Valcarcel, 28 of Lackawanna, NY; • Annette Lugo Rodriguez, 39 of San Juan, Puerto Rico; • Vivian Pintado-Figueroa, 40 of San Juan, Puerto Rico; • Wilmer Casiano-Perez, 25 of Lackawanna, NY; • Yarimar Berrios Alvarado, 24 of Lackawanna, NY; • Lavon Parks, 28 of Niagara Falls, NY; • James C. Parks, 55 of Niagara Falls, NY; and
• Wayne E. Paye, of Niagara Falls, NY.Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that according to the indictment, the defendants participated in a narcotics conspiracy responsible for distributing cocaine, heroin and fentanyl in the Western New York area. The conspiracy received bulk quantities of cocaine from suppliers in Puerto Rico via the United States Postal Service.
On May 26, 2017, a USPS postal inspector identified a suspicious postal parcel being mailed by Lavon Parks from a post office in San Juan to an address in Niagara Falls, NY. On May 31, 2017, a federal search warrant was executed on the suspicious parcel, which contained a kilogram of cocaine wrapped into a brick and concealed within a toaster oven.
On November 30, 2017, Lavon Parks, James Parks, and Wayne Payne were traveling on Interstate 40 in Hickman County, Tennessee. A law enforcement officer pulled the vehicle over after witnessing it commit several traffic infractions. James Parks, who was driving, was questioned outside the vehicle away from the passengers. He stated that he was heading back to Niagara Falls from Pensacola, Florida where they were visiting for a conference. The officer noted the unlikelihood that this was true given their location at least 50 miles west of Nashville, well off the route they would take if coming from Florida. At a later point during the traffic stop, James Parks stated that he had actually travelled from Florida to Houston to pick up Lavon Parks and Wayne Payne after they had called him for a ride. The rental car agreement was produced from the glove compartment and confirmed that James Parks rented the vehicle on November 17, 2017, in Buffalo.
The officers also spoke with the passengers. Wayne Payne stated that they were heading back to Niagara Falls, NY from Houston, TX after a visit to “setup a landscaping business.” Payne stated they were only in Houston for “a few hours; like a day or two.” Lavon Parks told the officer they were traveling from Houston to Niagara Falls and had stayed at the Hilton hotel.
A search of the vehicle recovered three-and-a-half kilograms of cocaine in four packages wrapped with plastic and duct tape concealed in the spare tire area underneath a cover. All three men disclaimed knowledge and ownership of the cocaine. When the packages were opened, officers located two smaller baggies containing crack cocaine.
Between July 2018 and February 2019, the investigation has seized approximately 10 ½ kilos of cocaine and $52,000 in U.S. currency from parcels shipped in the USPS mail between Puerto Rico and different states in the U.S. (including New York, Florida, Alaska, Georgia, and Pennsylvania). Additionally, the investigation conducted sneak and peek searches of parcels containing U.S. currency and money orders totaling $55,700.
Annette Rodriguez Lugo and Vivian Pintado-Figueroa are Puerto Rico-based co-conspirators responsible for shipping bulk quantities of cocaine in the US mail and receiving payments in the form of money orders or U.S. currency in exchange for the cocaine supplied.
On March 26, 2019, Felix Calderon-Valcarcel was observed travelling from his residence at 179 East Abbott Grove in Orchard Park in a rental vehicle to a suspected drug transaction. After the vehicle pulled over, investigators approached and observed Calderon-Valcarcel seated in the driver seat counting approximately $10,000 of U.S. currency. A search of the trunk of the rental vehicle resulted in the recovery of a plastic-wrapped kilogram of cocaine. Subsequently a search warrant was executed at the residence where Felix Calderon-Valcarcel resides with Yarimar Berrios Alvarado. Investigators located a large shipping box in the basement, which was found to contain four plastic-wrapped kilograms of cocaine identical to that recovered from the trunk of the vehicle. A 9 mm firearm was seized from the master bedroom, loaded with a magazine containing 10 rounds of ammunition.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; The Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Orchard Park Police Department, under the direction of Chief E. Joseph Wehrfritz; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Lackawanna Police Department, under the direction of Chief James Michel; the Hamburg Police Department, under the direction of Chief Gregory Wickett; and the Niagara Falls Police Department, under the direction of Superintendent Thomas Licata. Additional assistance was provided by the DEA in San Juan, Puerto Rico.
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.
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Eastside Hollygrove Resident Charged in Heroin and Fentanyl Conspiracy Sentenced to Ten YearsRead the Press Release
U.S. Attorney Peter G. Strasser announced that ALOYSIUS KORIEOCHA, a/k/a “Madi,” a/k/a “Ball,” age 37, of New Orleans, was sentenced today after pleading guilty to one count of conspiring to distribute one kilogram or more of heroin and a quantity of fentanyl.
United States District Judge Sarah S. Vance sentenced KORIEOCHA to ten years of imprisonment followed by five years of supervised release.
According to court records, during the timeframe of the charged drug conspiracy, KORIEOCHA conspired with codefendants Jonathan LAWRENCE, Brandon HALL, Donald MARCELIN, Brian MAXSON, Dwayne LABRANCH, Lance STOVALL, Vonzo MAGEE, and others, to distribute heroin and fentanyl throughout the New Orleans area. These individuals were members of a drug-trafficking organization that operated primarily in the Eastside Hollygrove neighborhood of New Orleans. Collectively, the group referred to their neighborhood as “The Zoo,” a name derived from a popular rap song and video filmed in the neighborhood. Each of the eight defendants has been linked to drug activity in Eastside Hollygrove through law enforcement controlled purchases, Title III wire and electronic interceptions, witness statements, drug seizures, and other evidence. Each of the eight defendants in this case has pleaded guilty, and thus far only KORIEOCHA has been sentenced.
U.S. Attorney Strasser praised the work of the FBI New Orleans Gang Task Force (NOGFT), which led this investigation and was assisted by the Drug Enforcement Administration, New Orleans Police Department, St. Tammany Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, and the Orleans Parish District Attorney’s Office. Assistant United States Attorneys Brandon S. Long, David Haller, and Edward Rivera are in charge of the prosecution.
Dominican National Pleads Guilty to Social Security Fraud and Identity TheftRead the Press Release
BOSTON – A Dominican national residing in Lawrence pleaded guilty yesterday in federal court in Boston to Social Security fraud and aggravated identity theft.
Santo Jesus Gonzalez Villar, 49, pleaded guilty to one count of false representation of a Social Security number and one count of aggravated identity theft. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for July 24, 2019. Gonzalez Villar was arrested and charged in a July 2018 federal law enforcement sweep of 25 individuals accused of document and benefit fraud.
Dubbed “Double Trouble,” the investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), comprised of local, state and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
On June 20, 2018, Gonzalez Villar submitted an Asbestos Worker Application with the Massachusetts Department of Labor Standards using the name and Social Security number of a U.S. citizen from Puerto Rico. He presented a Massachusetts driver’s license in the other person’s name bearing his photograph, a document he obtained fraudulently, as proof of his identity. Based on the application and supporting identity document, Gonzalez Villar was issued an Asbestos Worker Identification Card in the name of the U.S. citizen. Gonzalez Villar also used the name and Social Security number of a U.S. citizen from Puerto Rico to obtain driver’s licenses and to receive MassHealth benefits.
The charge of false representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Massachusetts State Auditor Suzanne M. Bump made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Dominican National Pleads Guilty to Identity TheftRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston to identity theft.
Maissel Avalo-Mejia, 30, a Dominican national residing in Foxboro, pleaded guilty to one count of misuse of a Social Security number and one count of aggravated identity theft. U.S. Senior District Court Judge George A. O’Toole scheduled sentencing for Sept. 5, 2019. Avalo-Mejia was arrested in May 2018 and released on conditions.
Avalo-Mejia used the name, date of birth, and Social Security number of a Puerto Rican man, who is presently a Specialist in the U.S. Army, to obtain several Massachusetts driver’s licenses, the most recent issued on April 10, 2014. Avalo-Mejia was identified, among other things, from a fingerprint match with a Dominican Republic identification document issued to him and bearing his photo.
The charging statute for misuse of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000. The charging statute for aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release, and a maximum fine of $250,000. 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; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Major Crimes Unit is prosecuting the case
Dominican National Charged with Illegal ReentryRead the Press Release
BOSTON – A Dominican national was arrested yesterday and charged in federal court in Boston with illegally reentering the United States after deportation.
Francisco Alberto Martinez, 49, a Dominican national residing in Peabody, was charged with unlawful reentry of a deported alien. He appeared in federal court in Boston yesterday and was ordered detained.
According to court documents, Martinez first unlawfully entered the United States on an unknown date. In December 1996, he became a legal permanent resident (LPR), but in 2011, he was convicted in federal court in Boston of cocaine conspiracy and sentenced to 66 months in prison. Upon completion of his sentence in 2014, Martinez lost his LPR status and was deported to the Dominican Republic. Martinez was recently encountered by law enforcement in Peabody and determined to be illegally present in the United States.
The charge of illegal reentry provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and Martinez will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation; and Peabody Police Chief Thomas M. Griffin made the announcement. Assistant U.S. Attorney Craig Estes of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Distribution of Methamphetamine and Heroin Leads to Federal ConvictionRead the Press Release
DENVER – A federal jury sitting in Denver found Troy Andrew Lujan, age 36, of Lakewood, Colorado, guilty of two counts related to the distribution of methamphetamine and heroin, announced United States Attorney Jason R. Dunn and Denver FBI Special Agent in Charge Dean Phillips.
Defendant Lujan was indicted by a grand jury on November 15, 2018, and ordered detained pending trial on December 12, 2018. According to court records and evidence presented at trial, on October 24, 2017, a confidential informant met Lujan at his apartment in Lakewood to complete a planned drug transaction. The deal was audio and video recorded. Lujan sold the confidential informant a half an ounce of methamphetamine and a half an ounce of heroin for $950. In addition to that recorded transaction, evidence at trial also revealed Lujan was selling approximately an ounce a day of both methamphetamine and heroin out of his apartment and that he had approximately 20 regular customers.
After receiving this evidence, the jury returned convictions on both counts yesterday afternoon. The trial lasted only two days.
“Heroin and methamphetamine are destroying lives in the State of Colorado,” said United States Attorney Jason Dunn. “We’ve made targeting these crimes a priority in our state and are grateful for the excellent work of all our law enforcement partners, including the FBI, who are working to remove drug dealers from our communities.”
“The FBI’s partnership with the United States Attorney’s Office ensures that violent criminals in our community are held accountable for their actions,” said FBI Denver Special Agent in Charge Dean Phillips. “Yesterday's conviction of Troy Andrew Lujan should serve as a deterrent to those intent on trafficking drugs to our community's citizens.”
For his convictions, defendant Lujan faces no less than five years in prison, not more than a five million dollar fine, followed by at least four years of supervised release. Lujan will be sentenced at a later date by Chief United States District Court Judge Philip A. Brimmer.
This matter was investigated by the FBI. The defendant was prosecuted by Assistant U.S. Attorneys Peter McNeilly and Rajiv Mohan.
Case No. 18-cr-533
Corrections Officer Indicted on Drug Trafficking ChargeRead the Press Release
CHARLESTON, W.Va. – A former corrections officer at the South Central Regional Jail, John Edward Roach II, age 47, of Charleston, has been charged with a federal drug trafficking crime, announced United States Attorney Mike Stuart. The charge is contained in a federal indictment that was unsealed today following Roach’s arrest. The indictment alleges that on or about April 11, 2019, Roach possessed with intent to distribute 50 grams or more of a methamphetamine mixture.
“This allegation is very serious,” said United States Attorney Mike Stuart. “The allegation that a corrections officer was dealing methamphetamine in a correctional facility is extremely troubling and led to this indictment. We expect every correctional officer to uphold the rule of law unlike the inmates for which they stand guard.”
According to public court filings and other documents, Roach received $2,000 as payment to use his position as a corrections officer to smuggle around four ounces of methamphetamine into the South Central Regional Jail. Before Roach could transport the methamphetamine to the jail, police investigators arrested him.
Assistant United States Attorney Drew O. Inman is handling the prosecution. The Drug Enforcement Administration (DEA), the Kanawha County Sheriff’s Department, the Putnam County Sheriff’s Department, the St. Albans Police Department, and the Boone County Sheriff’s Office conducted the investigation.
If convicted of the charge contained in the indictment, Roach faces a possible maximum sentence of 40 years in prison.
Please note: An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Convicted Felon Sentenced to over 13 Years in Prison After Bend Police Sieze Large Quantity of Methamphetamine and FirearmRead the Press Release
EUGENE, Ore.—Christopher Michael Soares, 35, of Southern Oregon, was sentenced today to 160 months in federal prison and five years’ supervised release for possessing with the intent to distribute methamphetamine in Bend, Oregon.
According to court documents, on June 28, 2016, police officers in Bend stopped Soares while he was driving a vehicle with two other occupants. When officers searched Soares’ person, they found 99 grams of methamphetamine, 56 grams of heroin and a 9mm firearm. Soares was later arrested on three separate occasions in Jackson County for additional drug and firearms offenses.
In September 2016, Soares was charged by federal criminal complaint for the June 2018 incident in Bend. He later pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine. Facing state and federal charges, the parties, including state prosecutors in Jackson County, agreed to a global resolution to resolve all of Soares’ pending criminal cases.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Bend Police Department, Medford Police Department and Deschutes County Sheriff’s Office. It was prosecuted by Nathan J. Lichvarcik, Assistant U.S. Attorney for the District of Oregon.
The case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Columbia County Man Sentenced to Year in Prison for Selling Firearms Without LicenseRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Eugene Ripp, 66, Arlington, Wisconsin, was sentenced yesterday by U.S. District Judge William Conley to one year and one day in federal prison for dealing in firearms without a license. This term of imprisonment will be followed by two years of supervised release. Ripp pleaded guilty to this charge on February 20, 2019.
In July 2015, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) presented Ripp with a Cease and Desist Letter, informing him that he could be prosecuted if he continued to engage in the business of selling firearms without a Federal Firearms License (FFL). At the time, the ATF had citizen complaints that Ripp was dealing in firearms, including at gun shows. Before issuing the Cease and Desist Letter, undercover contacts were made at gun shows to confirm that Ripp was selling firearms without a license. After confirming this, the ATF warned Ripp to stop dealing in firearms without a license. In a July 14, 2015 interview with ATF agents, Ripp was warned verbally and in writing of the potential for prosecution if he continued to engage in the business of selling firearms without a license.
Shortly after receiving the Cease and Desist Letter, Ripp continued to deal in firearms at gun shows. An undercover agent engaged Ripp in communications about purchasing firearms, even indicating that some of the firearms that the undercover agent was purchasing were intended for other unnamed individuals. Because Ripp did not have an FFL, he did not go through the background check process on prospective customers.
Ripp was heard on recorded undercover sales of firearms expressing concern that the firearms could get traced back to him if the firearms fell into the wrong hands. Ripp can be heard expressing concern that the ATF might be watching him, and instructing the undercover agent to not tell anyone that the firearms came from him. Several firearms were sold to the undercover agent in transactions occurring inside
Ripp’s vehicle in the parking lots of businesses in DeForest and Sun Prairie, Wisconsin, all without background checks. These sales occurred after Ripp had received the Cease and Desist Letter, and after Ripp had been made aware that some of his previously sold firearms had been used in crimes.
In rejecting the defense request that Ripp merely receive probation, Judge Conley explained that he had difficulty reconciling the good life that Ripp had led for most of his 66 years and the “callous” conduct of selling firearms that Ripp believed were going to unknown people, even after knowing that previously sold firearms were used in crimes. Judge Conley indicated that a prison term was necessary to deter other people who might consider engaging in the business of selling firearms without a license.
The charge against Ripp was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Kevin Burke.
Clinton Man Sentenced to over 12 Years in Federal Prison Under Project EJECT for Carjacking and Discharging a Firearm During the CrimeRead the Press Release
Jackson, Miss. – Darrell D. Moore, 22, of Clinton, was sentenced Monday by Chief U.S. District Judge Daniel P. Jordan III to 153 months in federal prison, followed by three years of supervised release, for carjacking and brandishing a firearm during the commission of a violent crime, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation. Moore was also ordered to pay $2,000 in restitution to the victim.
"This is great example of our office and law enforcement partners taking another violent criminal off the streets of Jackson. Our partnerships under Project EJECT continue to make a positive difference and are making our communities, neighborhoods and families safer. I commend our Jackson police officers, FBI special agents, and prosecutors for bringing this individual to justice and for bringing justice to the victim in this case," said U.S. Attorney Hurst.
On November 7, 2017, while Moore was on bond for murder in Hinds County, Moore, Alexus Guster, and Cedric Winfield agreed to rob and carjack a victim at gunpoint. At the instruction of Moore and Winfield, Guster lured the victim to a location where Winfield and Moore were waiting to carjack and rob him. Guster and Winfield spoke to the victim while standing at the passenger side of the vehicle. While the victim was distracted, Moore approached the driver’s side of the vehicle, pulled the victim out of the car at gunpoint, and forced him to give up his money and the vehicle. The victim then fled the scene on foot and Moore fired his gun twice in the direction of the victim. Winfield drove the car to his residence where Moore and Guster met him to search the car for valuables.
Moore pled guilty before Judge Barbour on November 13, 2018. Winfield pled guilty on October 16, 2018, and is awaiting sentencing. He faces a maximum penalty of fifteen years in prison and a $250,000 fine. Guster pled guilty on January 23, 2019, and was sentenced to time served and a $1,000 fine.
This case was investigated by the Federal Bureau of Investigation and the Jackson Police Department. It is being prosecuted by Assistant United States Attorneys Mary Helen Wall and Kimberly Taft Purdie.
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 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 our 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.
Clarence Investment Advisor Sentenced for Bilking Clients Out of Hundreds of Thousands of DollarsRead 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 Michael Giokas, 59, of Clarence, NY, who was convicted of wire fraud for defrauding numerous clients of his investment advisory firm out of hundreds of thousands of dollars, was sentenced to serve 52 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $916,396.
Assistant U.S. Attorney Paul E. Bonanno, who handled the case, stated that the defendant was a financial advisor and president of Giokas Wealth Advisors, located in Clarence. In that role, Giokas provided financial advisory services to more than 40 individual clients.
Between May 2017 and October 2017, the defendant persuaded certain clients to withdraw money from their investment accounts at Nationwide Mutual Insurance Company and invest the money in a company called Trinity Council, LLC. Giokas claimed that Trinity Council was a fund that invested in private corporations; that investments were guaranteed to earn interest between eight and nine percent per year; and that investment principal was guaranteed. The defendant also provided a fraudulent promissory note to one of his clients to convince the client that his investment in Trinity Council was legitimate.
Trinity Council was actually a shell company that engaged in no investment or business activity. Giokas was the sole member and only owner of Trinity Council, and the only person with signature authority on its bank accounts, which the defendant opened for the purpose of executing this scheme to defraud.
In a separate scheme, between 2015 and October 2017, Giokas prompted Nationwide to transfer money from his clients’ Nationwide accounts to the defendant under the guise of “fee requests.” Giokas claimed that he was entitled to the requested money as investment advisory fees, despite the fact that the requested amounts greatly exceeded what the defendant was entitled to pursuant to his fee agreements with his clients.
As a result of the two schemes, Giokas defrauded clients out of $1,473,396.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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Choctaw Man Sentenced to 7 Months for Burglarizing Procurement OfficeRead the Press Release
Jackson, Miss. – Shelton Shane Chapman, Jr., 20, of Leake County, and a member of the Mississippi Band of Choctaw Indians, was sentenced today by U.S. District Judge Carlton Reeves to 7 months in federal prison, followed by 3 years of supervised release, for burglary within the Pearl River Community of the Choctaw Indian reservation, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze. Chapman was ordered to pay $4,334.43 in restitution to the Mississippi Band of Choctaw Indians.
On November 7, 2017, Chapman entered the Mississippi Band of Choctaw Indians’ Procurement Office and stole a Dell bag and several iPhones and iPads. Chapman sold some of the items to two individuals who then pawned the items at a local pawn shop.
Chapman pled guilty on February 13, 2019, before Judge Reeves, after being indicted by a federal grand jury on November 27, 2018. Prior to being taken into federal custody, Chapman was serving a 7 year sentence in the custody of the Mississippi Department of Corrections burglarizing a business in Neshoba County.
This case was investigated by the Federal Bureau of Investigation and the Choctaw Police Department. It was prosecuted by Assistant United States Attorney Kimberly Purdie.
Checotah Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joshua Dewayne Funburg, age 34, of Checotah, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that on or about February 10, 2019, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to wit, one (1) Kel-Tec CNC Industries Inc., Model P-32, .32 ACP caliber semi-automatic pistol, serial number 57366, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Checotah Police Department, the McIntosh County Sheriff’s Office, and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Ben Gifford represented the United States.
Charleston Man and Business Indicted in Federal Court in over $9M FraudRead the Press Release
Charleston, South Carolina --- United States Attorney Sherri A. Lydon announced today that Amir Golestan, 36, of Charleston, South Carolina, and Micfo, LLC, were charged in federal court in a twenty-count indictment. The indictment charges twenty counts of wire fraud, with each count punishable by up to 20 years imprisonment.
The indictment alleges that since February 2014, Golestan and Micfo created and utilized “Channel Partners,” which purported to consist of several individual businesses, all of whom acquired the right to IP addresses from the American Registry of Internet Numbers (ARIN). The indictment alleges that Golestan and Micfo fabricated the true nature of the Channel Partners, including creating false officers and deceptive websites for the businesses, which were in turn used to deceive ARIN and to fraudulently obtain IP address rights from ARIN. The indictment charges that, through this scheme, Golestan and Micfo obtained the rights to approximately 757,760 IP addresses, with a market value between $9,850,880.00 and $14,397,440.00.
The charges are the result of an investigation conducted by the Federal Bureau of Investigation. Assistant United States Attorney Nathan Williams of the Charleston office is prosecuting the case.
The United States Attorney stated that all charges in the indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Carnegie Man Sentenced to Prison for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH, PA - A resident of Carnegie, Pennsylvania, has been sentenced in federal court to 18 months’ imprisonment and two years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on James Yeates, 53.
According to information presented to the court, from in and around January, 2016, and continuing thereafter to on or about November 30, 2017, Yeates conspired with others to distribute and possess with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance. The Court was further advised that, on or about December 28, 2017, Yeates attempted to possess with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance.
Assistant United States Attorneys Rebecca L. Silinski and Jeremy A. Moschetta prosecuted 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 James Yeates. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the 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 Stowe Township Police Department also provided assistance in this investigation. 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.
California Man Pleads Guilty to Making Violent Threats Against Boston Globe EmployeesRead the Press Release
BOSTON – A California man pleaded guilty today in federal court in Boston in connection with making violent threats against Boston Globe employees in retaliation for the newspaper’s editorial response to political attacks on the media.
Robert D. Chain, 68, of Encino, Calif., pleaded guilty to seven counts of making threatening communications in interstate commerce. U.S. District Court Judge William G. Young scheduled sentencing for Sept. 23, 2019.
On Aug. 10, 2018, the Boston Globe announced that it was requesting other newspaper publications around the country to publish a coordinated editorial response to political attacks on the media. The coordinated editorial response was to be published on Thursday, Aug. 16, 2018.
Immediately following the announcement, Chain began making threatening calls to the Boston Globe’s newsroom. In the calls, Chain referred to the Globe as “the enemy of the people” and threatened to kill newspaper employees. In total, Chain made approximately 14 phone calls to the Globe between Aug. 10 and 22, 2018.
On Aug. 16, 2018, the day the coordinated editorial response was published in the Boston Globe, Chain called the Globe newsroom and threatened to shoot Globe employees in the head “later today, at 4 o’clock.” As a result of that call, local law enforcement responded to the Globe’s offices and maintained a presence outside the building to ensure the safety of the employees.
The charge of making threatening communications in interstate commerce provides for a sentence of no greater than five years, one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Los Angeles Field Division; the Drug Enforcement Administration, Los Angeles Division; the U.S. Postal Inspection Service, Los Angeles Division; the California Highway Patrol; the Los Angeles Police Department; and the Boston Police Department. Assistant U.S. Attorney George P. Varghese of Lelling’s National Security Unit is prosecuting the case.
Broken Bow Resident Sentenced to 180 Months for Felon in Possession of FirearmRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Broken Bow resident Thomas Christopher Joseph, age 51, was sentenced to 180 months’ imprisonment and 3 years of supervised release for Felon in Possession of Firearm. The charges arose from an investigation by the Broken Bow Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about January 8, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed an SCCY, Model CPX-1, 9mm semi-automatic pistol, serial number 247149, a firearm which had been shipped and transported in interstate commerce. Joseph’s prior convictions included Second Degree Robbery and Second Degree Burglary.
United States Attorney Brian J. Kuester said, “Project Safe Neighborhoods is a Department of Justice priority which emphasizes collaborative efforts between federal and local law enforcement agencies to reduce violent crime. This investigation and prosecution was the result of those efforts.”
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.
Bribe Payer in DCS Scheme Sentenced to 7 Years in Federal Prison, Ordered to Pay $125M in RestitutionRead the Press Release
Force Multiplier Solutions CEO Robert C. Leonard was sentenced today to seven years in federal prison and ordered to pay $125 million in restitution for his role in a bribery scheme that took down multiple public officials and precipitated the collapse of Dallas County Schools, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Mr. Leonard, of New Orleans, Louisiana, pleaded guilty on August 9 to conspiracy to commit honest services wire fraud.
“In peddling bribes and kickbacks, Mr. Leonard undermined Dallas’ trust in its public officials. And in bringing him to justice, we hope to restore citizens’ faith in the system,” said U.S. Attorney Nealy Cox. “As I’ve said repeatedly over the past year and a half, the U.S. Attorney’s Office will be relentless in its pursuit of anyone involved in bribing public officials – from bribe recipients to bribe facilitators to bribe payers. The citizens of Dallas deserve integrity from City Hall.”
In plea papers, Mr. Leonard, now 71, admits he paid local officials – including then Mayor Pro Tem Dwaine Caraway and former DCS Superintendent Ricky Sorrells – more than $3.5 million in order to secure DCS contracts for his company’s stop-arm camera technology.
In an attempt to conceal the illicit payments, the majority of the bribe money was funneled through ELF Investments, a sham consulting firm run by Mr. Leonard’s business associate, Slater Swartwood. The remainder was funneled through law firms or doled out in the form of credit card debt repayments, student loan payments, custom-made suits, fully funded trips, casino chips, fake loans, funeral expenses, and cash payments.
A criminal indictment against former DCS Board President Larry Duncan revealed Mr. Leonard also gave Mr. Duncan a quarter of a million dollars in campaign contributions – money the DCS Board President diverted from his re-election bid and instead used to cover personal expenses.
Councilmembers Duncan and Caraway, as well as Mr. Sorrells and Mr. Swartwood, have pleaded guilty to criminal wrongdoing in the case.
Chief U.S. District Judge Barbara M.G. Lynn sentenced Mr. Caraway to 56 months in federal prison and Mr. Duncan to six months’ home confinement. Mr. Sorrells and Mr. Swartwood are set to be sentenced in August 2019.
Dallas County Schools, which collected property taxes to purchase stop-arm cameras for its fleet of about 2,000 busses, was shuttered in November 2017, saddled with approximately $103 million in debt.
The Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation unit conducted the investigation. Assistant U.S. Attorneys Andrew Wirmani, NDTX’s Public Corruption Coordinator, Marcus Busch, NDTX’s Fraud Section Chief, Chad Meacham, and Joseph Magliolo prosecuted the case.
Boyce Man Pleads Guilty to Possessing a RevolverRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that Jeffrey Dale Clark Jr., 36, of Boyce, Louisiana, pleaded guilty Tuesday before U.S. District Judge Dee D. Drell for possessing a revolver.
During a parolee visit with Clark at his home on May 29, 2018, Louisiana State Probation and Parole officers found that Clark was in possession of a ROHM, Model RG10, .22-caliber revolver. Upon their arrival, Clark was in the yard and he began walking in the opposite direction. When the officers asked him to turn around, they observed him patting his pockets and asked if he had a weapon, at which time he produced a knife. The officers then searched Clark and found the ROHM, Model RG10, .22-caliber revolver in the waistband of his pants.
Clark is convicted felon of various crimes including simple burglary in 2002, theft in 2002, forgery in 2003, and possession of methamphetamine in 2013, all in Beauregard Parish. Under federal law, a felon is not allowed to possess firearms and ammunition.
Clark faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for August 20, 2019.
The ATF and Louisiana State Probation and Parole conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for reductions in crime.
Attorney General William P. Barr to Travel to El Salvador to Advance Key Department of Justice PrioritiesRead the Press Release
Today, the Attorney General will travel to El Salvador to meet with deployed Department of Justice employees, diplomats, and law enforcement officials from the Northern Triangle countries to advance key Department priorities, including interdicting illegal narcotics, dismantling MS-13, the 18th Street Gang and other transnational criminal organizations, and combatting illegal migration and human trafficking. While in El Salvador, the Attorney General will also tour the International Law Enforcement Academy and participate in the Third Ministerial of the Northern Triangle Attorneys General in order to further strengthen our international law enforcement partnerships, which are critical to stopping the flow of drugs, illegal guns, and human trafficking before they can reach our Southern Border.
“International cooperation is the key to countering the scourge of MS-13 and other vicious transnational criminal organizations,” said Attorney General William P. Barr. “We have to eradicate these gangs wherever we find them before they threaten the safety of all of our communities. In order to incapacitate MS-13 and similar groups, we will use all lawful tools within and outside our borders to make sure these criminals face justice. This trip is an important step in furthering this Administration priority.”
Armed Drug Dealer Pleads Guilty to Possessing a FirearmRead the Press Release
NEWPORT NEWS, Va. – A Virginia man pleaded guilty yesterday to possession of a firearm in furtherance of drug trafficking.
According to court documents, Leo Vaughn, 37, of Newport News, was found in possession of distribution quantities of marijuana and a large sum of cash during a routine traffic stop. When a search warrant was executed at his residence, law enforcement discovered several pounds of marijuana, more than $70,000 in cash and multiple firearms.
Vaughn pleaded guilty to possessing a firearm in furtherance of drug trafficking and faces a mandatory minimum sentence of five years and a maximum of life in prison when sentenced on October 2. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after Senior U.S. District Judge Henry Coke Morgan, Jr., accepted the plea. Assistant U.S. Attorney Eric M. Hurt is prosecuting 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. 4:19-cr-21.
Anchorage Man Charged with Illegal Possession of Machinegun and SilencersRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Michael Lee Graves, 20, of Anchorage, has been charged by criminal complaint with illegal possession of a machinegun and possession of an unregistered firearm (silencer). Graves was arrested on the charges on May 7, 2019, and was ordered detained pending trial.
According to the complaint, on April 28, 2019, the FBI received an online tip that Graves was posting racially motivated extremist views on his social media accounts, that he had weapons, and that the tipster was concerned about his potential for violence. That same day, U.S. Customs and Border Protection (CBP) intercepted a package from China addressed to “Mike G” at an Anchorage address. The complaint alleges the package contained a full auto selector switch for a Glock handgun. A full auto selector switch, which is not an authentic Glock part, is designed and intended to convert a semi-automatic pistol into a machinegun.
On May 7, 2019, U.S. Postal Inspection Service (USPIS) conducted a controlled delivery of the package to Graves. The complaint alleges that Graves admitted to ordering the selector switch online, and that he also manufactured silencers from parts purchased online. A search of Graves’ apartment revealed two unregistered silencers, one of which had a swastika and “1488” painted on it.
If convicted, Graves faces a maximum of up to 10 years in prison and a $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service (USPIS), the U.S. Customs and Border Control (CBP), and Homeland Security Investigations (HSI) conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Kimberly Sayers-Fay.
The FBI notes that this investigation began with a tip from a concerned citizen. The FBI encourages Alaskans who may have concerns or information about similar crimes to contact the FBI at 907-276-4441 or through its online anonymous tip portal.
The charges in the criminal complaint are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
14 May 2019
“Broadway Bandit” Arrested 15 Days After Release from Federal Prison for Prior Bank RobberiesRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced that JAMIE FRIERSON was arrested for robbing a bank in the Bronx on May 8, 2019, 15 days after he was released from federal prison in connection with convictions for five previous bank robberies in Manhattan. FRIERSON was arrested this morning.
U.S. Attorney Geoffrey S. Berman said: “As alleged, nine days after being released from a stint in prison for bank robbery, ‘Broadway Bandit’ Jamie Frierson was back for a repeat performance, this time brazenly robbing a bank in the Bronx. His alleged threats of violence have again endangered the safety of New Yorkers. Thankfully, due to the hard work and rapid response of the FBI/NYPD Violent Crime Task Force, Frierson is now in custody.”
FBI Assistant Director William F. Sweeney Jr. said: “After being released from federal prison for robbing banks, Jamie Frierson allegedly went right back to the very crime that put him in jail in the first place. He clearly did not learn a lesson. Our FBI/NYPD Violent Crimes Task Force worked hard to track Mr. Frierson down before he was able to hit yet another bank.”
Commissioner James P. O’Neill said: “The rapid apprehension of this individual wouldn’t be possible without the active cooperation between the banking community and our local, state and federal law enforcement partners. By precisely targeting the relatively small percentage of people responsible for committing much of the violence in New York, we are making the safest large city in America even safer. We remain relentless in our efforts to identify, arrest, and prosecute anyone who involves themselves in such behavior whether it is on our streets or in our jails.”
According to the allegations in the Complaint[1] unsealed today and public court records:
On May 8, 2019, at approximately 2:54 p.m., FRIERSON entered a bank (“Bank-1”) at 120 East Fordham Road between Creston Avenue and East 190th Street in the Bronx, New York. Upon approaching a teller window at Bank-1, FRIERSON passed a note to a bank teller (“Teller-1”), which read: “I AM ARMED GIVE ME ALL OF IT! 100’S, 50’S, 20, 10 IMMEDIATELY NO DIE PACKS.” After providing Teller-1 with the note, FRIERSON told Teller-1, in substance and in part: “Give me all hundreds. Give me all your money. I’m armed.” Teller-1 gave FRIERSON approximately $200 of Bank-1’s money and FRIERSON fled.
FRIERSON was previously charged and convicted in the Southern District of New York after a jury trial for committing five bank robberies in Manhattan between August 16, 2017, and August 29, 2017. Evidence at trial established that the defendant committed these robberies by passing notes to tellers threatening that FRIERSON had a gun. FRIERSON was released from prison on April 29, 2019.
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FRIERSON, 49, of New York, New York, has been charged with one count of bank robbery, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI/NYPD Violent Crime Task Force and the NYPD Warrants – BRONX/JAWS Team.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Aline R. Flodr, Sheb Swett, and Sagar K. Ravi are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Wichita Man Pleads Guilty to Liquor Store RobberyRead the Press Release
KANSAS CITY, KAN. – A Wichita man pleaded guilty Monday to committing a liquor store robbery during which a clerk shot him in the leg, U.S. Attorney Stephen McAllister said.
Rayquan Hill, 19, Wichita, Kan., pleaded guilty to one count of robbery. In his plea, he admitted he and a co-defendant robbed F & K Liquor at 902 S. Woodlawn in Wichita. A store clerk shot Hill in the leg during the robbery. Hill was arrested at the scene. The co-defendant was arrested later that day at work.
Co-defendant Jamaryus Moore, 20, Wichita, Kan. is awaiting sentencing.
Hill is set for sentencing Aug. 5. He faces a penalty of up to 20 years in federal prison and a fine up to $250,000.
McAllister commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Aaron Smith for their work on the case.
Westminster Woman Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
BOSTON – A Westminster woman pleaded guilty yesterday in federal court in Worcester to stealing Social Security benefits.
Theresa Kenda Benedict, 55, pleaded guilty to one count of theft of public funds and four counts of making false statements. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Aug. 14, 2019. Benedict was arrested and charged in June 2018.
Benedict served as the representative payee for an individual who was receiving Social Security benefits. In 2013, 2014, 2015, and 2016, Benedict informed the Social Security Administration that she used all of the money she received as a representative payee for the beneficiary. However, Benedict had used some of the money for her own expenses. Between December 2007 and March 2016, the government alleges Benedict stole approximately $46,310 in Social Security benefits.
The charge of theft of public funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of making false statements each provide for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.