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10 May 2019
Philadelphia Men Indicted on Federal Drug ChargesRead the Press Release
PITTSBURGH, PA – On May 8, 2019, two former residents of Philadelphia, Pennsylvania, were indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment names Jermaine Kyle Clark, age 41, and Terry Suggs, Jr., age 34, as co-defendants. According to the Indictment, which was returned five days after a federal criminal complaint was filed, from February 24, 2019, to February 25, 2019, Clark and Suggs conspired to distribute and each possessed with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine and 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
According to the Affidavit in Support of the Criminal Complaint, on February 25, 2019, investigators with the Allegheny County District Attorney Narcotics Enforcement Team (D.A.N.E.T), conducted a controlled purchase and delivery operation, relating to an ongoing investigation into drug-trafficking activity coming from Philadelphia, Pennsylvania, to Allegheny County. As a result of this investigation, law enforcement apprehended Clark and Suggs with approximately 23 separate, clear vacuum sealed packages, containing a white powdery substance, believed to be approximately 23 kilograms of cocaine, which were located within hidden compartments in the vehicles driven by the defendants. Additionally, in the vehicle operated by Suggs, investigators seized $8,060.00.
If convicted, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of up to $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Allegheny County District Attorney Narcotics Enforcement Team made the initial arrest on February 25, 2019, relating to the charges set forth in the Indictment, and the Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced to over 23 Years in Federal Prison for Methamphetamine Trafficking and Gun PossessionRead the Press Release
Jackson, Miss. – Dijon Jamese Seales, 28, of Philadelphia, Mississippi, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to serve a total of 285 months in federal prison, followed by five years of supervised release, for possession with intent to distribute five grams or more of methamphetamine and possession of firearms in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans. Seales was also ordered to pay a $1,500 fine.
On January 22, 2018, members of the U.S. Marshals Gulf Coast Regional Fugitive Task Force arrested Seales pursuant to an arrest warrant issued out of the Northern District of Texas for violating pretrial release conditions in an unrelated case. While executing the arrest warrant, task force members found 16.9 grams of methamphetamine on Seales intended for distribution. Additionally, in furtherance of his drug trafficking offense, Seales was found in possession of a Glock 43 pistol and a Ruger AR-556 rifle with an assortment of gun accessories, including a bump stock.
On March 7, 2018, Seales was charged in a criminal indictment with possession with intent to distribute five grams or more of methamphetamine and possession of firearms in furtherance of a drug trafficking crime. He pled guilty before Judge Jordan on February 8, 2019.
This Organized Crime Drug Enforcement Task Force ("OCDETF") case is a result of a joint investigation by Homeland Security Investigations, the Drug Enforcement Administration and the Mississippi Bureau of Narcotics. Assisting agencies included the United States Marshal’s Service, Gulf Coast Regional Fugitive Task Force, Philadelphia Police Department, Neshoba County Sheriff’s Department, Neshoba County District Attorney’s Office, Scott County Sheriff’s Office, Flowood Police Department, Rankin County Sheriff’s Department, Hinds County Sheriff’s Department, Carthage Police Department, Union Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisville Police Department, and the Mississippi Highway Patrol.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorneys Erin Chalk and Drew Eichner prosecuted the case.
Owners of Home Healthcare Company Sentenced for Tax FraudRead the Press Release
BOSTON – The co-owners of a Boston-area home healthcare company were sentenced yesterday in federal court in Boston for underreporting income to the IRS resulting in over $1 million in losses.
Hannah Holland, 51, of Quincy, and Sheila O’Connell, 51, of North Weymouth, were each sentenced by U.S. Senior District Court Judge Mark L. Wolf to six months in prison and three years of supervised release. Both were also ordered to pay $1,126,112 in restitution. In November 2018, Holland and O’Connell pleaded guilty to an Information charging them with one count of conspiracy to defraud the United States and three counts of aiding and assisting in the preparation of false tax returns.
Holland and O’Connell co-owned and operated Erin’s Own Home Healthcare Inc. (Erin’s Own). Between 2010 and 2014, Holland and O’Connell cashed over $3.5 million of Erin’s Own business checks through nominee bank accounts controlled by a third-party. During this time period, Holland also personally cashed over $77,000 of Erin’s Own business receipts. None of these funds were ever reported to the IRS or accounted for in the company’s tax filings. Instead, Holland and O’Connell provided their tax preparer with a limited set of the financial records that did not cover the substantial amounts of business funds Holland and O’Connell diverted. As a result of the underreporting, Erin’s Own caused a loss of $1,126,112 to the IRS.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities and Financial Fraud Unit, and Trial Attorney Brittney Campbell of the Department of Justice’s Tax Division prosecuted the case.
Newark Man Charged After Authorities Locate Heroin Mill in His ApartmentRead the Press Release
NEWARK, N.J. – A Newark man was charged today with narcotics offenses after an authorized search revealed that he was operating a large-scale heroin mill out of his apartment, U.S. Attorney Craig Carpenito announced.
Alexis Garcia Cabrera, 49, is charged by complaint with one count of possessing over one kilogram of heroin with intent to distribute. Garcia Cabrera made his initial appearance before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court and was released on home detention.
According to documents filed in this case and statements made in court:
On May 9, 2019, Drug Enforcement Administration (DEA) agents executed a search warrant at Garcia Cabrera’s residence and located multiple freezer-type bags containing heroin, as well as a large quantity of loose heroin that was in the processing stage. Law enforcement officers also located equipment used to process and “cut” heroin, including grinders, sifters, and chemical cutting agents, and large quantities of materials designed to package heroin for street-level distribution, including more than 1,000 glassine envelopes. Agents also located multiple “bricks” of heroin, or packages of 50 individual doses, which are intended for street-level distribution.
The count of possession of over one kilogram of heroin with intent to distribute carries a maximum penalty of life in prison, a mandatory minimum term of 10 years in prison and a $10 million fine.
U.S. Attorney Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s charge.
The government is represented by Special Assistant United States Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Chester Keller Esq., First Assistant Federal Public Defender, Newark
New York Broker-Dealer Pleads Guilty to Violating U.S. Antitrust Laws by Rigging Bids for Financial InstrumentsRead the Press Release
Banca IMI Securities Corp. (Banca IMI), a New York broker-dealer, pleaded guilty to an antitrust charge and was sentenced to pay a criminal fine in excess of $2 million for its involvement in a bid-rigging conspiracy for certain financial instruments, the Department of Justice announced today.
Banca IMI admitted, as part of its guilty plea, that from March 2012 until at least August 2014, it conspired with other institutions and individuals to submit rigged bids to borrow pre-release American Depository Receipts (ADRs). Worldwide, thousands of publicly traded companies list their shares of common stock only on foreign stock exchanges. Most U.S. investors are unable to purchase or sell such foreign shares. The U.S. Securities and Exchange Commission, however, permits four U.S. depository banks to create ADRs, which represent foreign ordinary shares and can be traded in the United States. Through the purchase and sale of ADRs, U.S. investors are able to gain exposure to — including the ability to receive dividends from — companies whose common stock is listed only on foreign stock exchanges.
Banca IMI pleaded guilty to conspiring to borrow pre-release ADRs from U.S. depository banks at artificially suppressed rates. During the conspiracy, a U.S. depository bank began using an auction-style process for pre-release ADRs and invited Banca IMI and other broker-dealers to submit competitive bids for rates to borrow ADRs. In response, Banca IMI and its co-conspirators intensified their coordination in an effort to increase artificially their profits under the auction-style process. On at least 30 occasions, Banca IMI reached an agreement with one or more co-conspirators as to the bids they would submit to U.S. depository banks. On many occasions, the conspirators agreed that they all would submit the same bid.
“Today’s charge represents the commitment of the Department of Justice and its law enforcement partners to uncovering and prosecuting cheaters who corrupt our financial and capital markets,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Complex financial markets are not beyond the reach of the antitrust laws. The Antitrust Division will aggressively pursue criminals in technically complicated markets, including those that some wrongly presume may be beyond detection or the reach of antitrust enforcement.”
“The FBI is committed to rooting out corruption and fraud against the United States wherever it occurs,” said Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division. “The guilty plea today is the result of the FBI International Corruption Unit’s persistent and ongoing efforts to protect competition and identify those engaged in anticompetitive, fraudulent conduct. We will continue to pursue antitrust investigations aggressively with our DOJ partners.”
The Washington Criminal II Section of the Antitrust Division and the FBI’s International Corruption Unit are conducting the investigation into bid rigging in the market for pre-release ADRs. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal II Section at 202-598-4000 or visit www.justice.gov/atr/contact/newcase.html.
New Paltz Man Sentenced to 30 Years for Sexually Exploiting Four ChildrenRead the Press Release
ALBANY, NEW YORK – Cammron Robinson, age 24, of New Paltz, New York, was sentenced yesterday to 30 years in prison for sexual exploiting four children.
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 New York State Police Acting Superintendent Keith M. Corlett.
As part of his guilty plea, Robinson admitted that he convinced four children to engage in sexually explicit conduct, and produced videos and images capturing that conduct over the course of three years.
Specifically, Robinson admitted that from 2015 through 2017, he used the PS4 gaming console, Skype, Zoom and cell phones to chat online with numerous male children. During the course of these communications, Robinson persuaded, induced, enticed, or coerced boys between the ages of 11 and 13 to masturbate and/or show him their genitalia. These sexually explicit acts were then recorded or saved by Robinson so he could watch and view them again.
Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Robinson is released from prison, and ordered Robinson to pay restitution in the amount of $9,000. As a result of his conviction, Robinson will be required to register as a sex offender upon his release from prison.
Robinson’s case was investigated by the New York State Police and the FBI. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Nebraska Man Setenced to 35 Years for Producing Child PornographyRead the Press Release
A Nebraska man was sentenced today to 35 years in prison to be followed by lifetime supervised release for producing child pornography in 2016, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Joseph P. Kelly of the District of Nebraska.
Steven R. Carlson, 38, of Omaha, Nebraska, was sentenced by U.S. District Court Judge Robert F. Rossiter Jr. of the District of Nebraska.
According to admissions made in connection with his guilty plea, in May 2016, Carlson filmed himself engaging in forcible, sexual acts with a non-communicative minor. A search warrant executed on Carlson’s residence resulted in the discovery of hundreds of images of child pornography involving minors including infants and toddlers.
The FBI Cyber Crimes Task Force investigated this case. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska prosecuted the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Nebraska Man Sentenced to 35 Years in Prison for Producing Child PornographyRead the Press Release
A Nebraska man was sentenced today to 35 years in prison to be followed by a lifetime of supervised release for producing child pornography in 2016, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Joseph P. Kelly of the District of Nebraska.
Steven R. Carlson, 38, of Omaha, Nebraska, was sentenced by U.S. District Court Judge Robert F. Rossiter Jr.of the District of Nebraska.
According to admissions made in connection with his guilty plea, in May 2016, Carlson filmed himself engaging in forcible, sexual acts with a non-communicative minor. A search warrant executed on Carlson’s residence resulted in the discovery of hundreds of images of child pornography involving minors including infants and toddlers.
The FBI Cyber Crimes Task Force is investigating this case. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
National Prescription Drug Take Back Day Yields over 6,000 Pounds of Prescription Pills in NevadaRead the Press Release
LAS VEGAS, Nev. – In Nevada, 6,323 pounds, or three tons, of unused, unwanted, and expired prescription medications were turned-in at the 17th National Prescription Drug Take Back Day held in April, announced United States Attorney Nicholas A. Trutanich for the District of Nevada and Assistant Special Agent in Charge Daniel W. Neill for the DEA.
“These results are heartening. Nevadans recognize that combating the opioid epidemic starts with prevention,” said U.S. Attorney Trutanich. “The U.S. Attorney’s Office is committed to continue working in communities to turn the tide on this public health and safety crisis.”
Nationwide, the total weight collected was 937,443 pounds, or 468 tons, of prescription medications. There were 4,969 participating law enforcement agencies and 6,258 collection sites throughout the country.
Take Back Day addresses a crucial public safety and public health issue. According to the Centers for Disease Control and Prevention, 70,237 drug overdose deaths occurred in the United States in 2017. Take Back Day is part of a nationwide effort sponsored by the DEA and it is a safe, convenient, and responsible way to dispose of prescription drugs.
Complete results for DEA’s spring Take Back Day are available at www.DEATakeBack.com.
The next Take Back Day is October 26, 2019.
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Minnesota Man and California Man Sentenced for Contributing to the Delinquency of a Child, Furnishing Alcohol Beverages to a Child, and Failure to AppearRead the Press Release
United States Attorney Ron Parsons announced that a Mankato, Minnesota, man and a Delano, California, man were sentenced by U.S. District Judge Karen E. Schreier.
Jay Leslie Haggard, age 32, was found guilty of two counts of Contributing to the Delinquency of a Child as a result of a federal jury trial in Sioux Falls, South Dakota, on March 7, 2019. He was sentenced on March 8, 2019, to time served, 1 year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $50.
Ryan Lawrence Juan, age 24, pled guilty to two counts of Furnishing Alcoholic Beverages to a Child and one count of Failure to Appear on March 1, 2019. He was sentenced, on May 9, 2019, to time served and a special assessment to the Federal Crime Victims Fund in the amount of $75.
Haggard and Juan was indicted by a federal grand jury on September 6, 2017.
The convictions stemmed from an incident between August 22, 2017, and August 23, 2017, when Haggard and Juan met two juvenile females and provided them with alcoholic beverages.
The conviction on the Failure to Appear charge stemmed from Juan failing to appear for his initial appearance set for September 17, 2018, with Magistrate Judge Veronica L. Duffy.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Mexican Man Sentenced for Immigration OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that GERARDO TEJEDA-QUIROZ, age 33, a native of Mexico, was sentenced Wednesday, May 8, 2019 on a one-count indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
United States District Court Judge Mary Ann Vial Lemmon sentenced TEJEDA to time served in prison, followed by 2 years of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of Immigration and Customs Enforcement for removal proceedings.
According to court documents, the defendant had been previously removed from the United States on April 24, 2009, and then reentered the United States without permission.
U.S. Attorney Strasser praised the work of the Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
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McRae Pleads Guilty to Destruction of Energy Facility; Admits He Used Rifle to Fire Shots into Cooling FinsRead the Press Release
SALT LAKE CITY – Stephen Plato McRae, age 59, of Escalante, who was charged with one count of destruction of an energy facility in an indictment returned in February 2017, pleaded guilty to the charge Friday morning in U.S. District Court in Salt Lake City.
U.S. Attorney John W. Huber, FBI Special Agent in Charge Paul Haertel, and Kane County Sheriff Tracy Glover announced the plea agreement Friday afternoon.
In stipulated facts included in the plea agreement, McRae admitted that he traveled to the Buckskin Electrical Substation in Kane County on Sept. 25, 2016. Garkane Energy Cooperative owns the substation. Using his Springfield 30-40, Model 1898, rifle, McRae admitted he fired shots into the cooling fins rupturing the radiator piping. The damage from the rifle shots caused the energy facility substation to overheat and fail. McRae’s actions caused a power outage in Kane and Garfield counties.
Garkane spent $380,522 to repair the damage caused by McRae’s criminal conduct.
The plea agreement includes a stipulated sentence of 96 months in federal prison, which is subject to the approval of the court. Sentencing in the case is set for July 30, 2019, before U.S. District Judge Ted Stewart. McRae is in federal custody.
As a part of the plea agreement, McRae also admitted that he damaged other energy facilities for which he has not been charged. The United States and local prosecuting authorities have agreed not to seek charges for these offenses. However, these incidents will be included as relevant conduct the court will take into consideration in determining the reasonableness of the stipulated 96-month sentence.
The other offenses include damage McRae caused to the Libson Valley Substation in San Juan County on April 1, 2015; damage he caused to the Quinn River Substation in Humboldt County, Nevada on Aug. 31, 2016; and damage he caused to the Baker Substation in White Pine County, Nevada, on Sept. 14, 2016.
McRae has agreed to pay $380,522 in restitution to Garkane Energy Cooperative. He faces up to three years of supervised release when he finishes his federal prison sentence. As a part of the plea agreement, McRae agreed that he would not reside in or travel through six Utah counties (Garfield, Kane, Wayne, Juab, Iron, and Washington) during the term of his supervised release. Garkane Energy Cooperative, Inc. has energy facilities in these counties.
As a part of the plea agreement, federal prosecutors have agreed to dismiss two other counts included in the indictment, possession of a firearm/ammunition by a restricted person and possession of a controlled substance, at sentencing.
Special agents of the FBI and the BLM, who are participating as members of the FBI’s Joint Terrorism Task Force, the Kane County Sheriff’s Office, the Garfield County Sheriff’s Office, the Humbolt County Sheriff’s Offfice in Nevada, and the White Planes County Sheriff’s Office in Nevada have participated in the investigation. Assistant U.S. Attorneys in Utah are prosecuting the case.
Maryland Fentanyl and Heroin Dealer Pleads Guilty to Federal Drug ChargesRead the Press Release
Faces Nine Years In Federal Prison
Baltimore, Maryland – Gari Terrell Miller, age 38, of Clinton, Maryland, pleaded guilty on May 9, 2019 to conspiracy to distribute and possess with intent to distribute fentanyl, and to possession with intent to distribute fentanyl. Miller was one of the first defendants charged as part of the new federal-state initiative announced in December 2018 to combat the fentanyl crisis in Maryland.
Under this new initiative, titled the “Synthetic Opioid Surge,” or “SOS” for short, every arrest involving distribution of fentanyl made by law enforcement in Baltimore is reviewed jointly by the State’s Attorney’s Office for Baltimore City, the Drug Enforcement Administration, and the U.S. Attorney’s Office to determine whether the case will be handled in the state or federal system. The U.S. Attorney’s Office will prosecute more cases involving fentanyl as a result of this new program. The use of federal resources and statutes, which carry significant terms of imprisonment, is necessary to prosecute those individuals who pose the greatest threat to public safety in distributing lethal doses of fentanyl.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer Moore of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police.
“State and federal law enforcement and prosecutors in Baltimore City are teaming up to arrest and prosecute those who peddle the deadly poison of fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “As a result of our combined efforts, Gari Miller now faces federal prison time, where there are no suspended sentences and no parole, ever. We must do everything we can to reduce overdose deaths from this drug and from all opioids.”
According to his plea agreement, on April 12, 2018, a Maryland Transportation Authority Police officer conducted a traffic stop near Conway Street in Baltimore, after observing Miller drifting between lanes and turning onto Conway Street without signaling. During the stop, the officer smelled marijuana. After the officer conducted a sobriety test, he searched Miller and recovered approximately $740 in cash and a white powdery substance that was 49 grams of fentanyl—enough to kill 24,500 people. Law enforcement also recovered from Miller’s vehicle $3,300 in cash bound with rubber bands, and a drug ledger with weights, names and dollar amounts listed. The ledger reflects, and Miller admits, that he sold 832 grams of heroin.
Miller further admitted that he conspired with others to distribute fentanyl and heroin in Maryland. Miller had others assisting him with distributing narcotics and collecting the drug proceeds.
Miller and the government have agreed that, if the Court accepts the plea agreement, Miller will be sentenced to nine years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for July 16, 2019 at 9:15 a.m.
United States Attorney Robert K. Hur commended the DEA and Maryland Transportation Authority Police for their work in the investigation and thanked Baltimore State’s Attorney Marilyn Mosby and her office for their assistance. Mr. Hur thanked Assistant U.S. Attorney Samika N. Boyd, who is prosecuting the case.
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MEDIA ADVISORY: U.S. Department of Justice and State of West Virginia Officials to Hold Press ConferenceRead the Press Release
CHARLESTON, W.Va. – Assistant Attorney General Eric Dreiband, Civil Rights Division, United States Department of Justice, Mike Stuart, United States Attorney for the Southern District of West Virginia, Assistant United States Attorney Helen Altmeyer, Northern District of West Virginia, Governor James C. Justice and Secretary Bill Crouch, West Virginia Department of Health and Human Resources will hold a press conference on Tuesday, May 14, 2019, at 1:00 p.m., to discuss a major agreement reached between the United States Department of Justice and the State of West Virginia.
Where: Robert C. Byrd United States Courthouse - 5th floor (not in the U.S. Attorney’s Office)
300 Virginia Street East
Charleston, WV 25301
When: Tuesday, May 14, 2019 @ 1:00 p.m.
NOTES: Open Press. Camera preset at 12:30 p.m. Final access time for print media is 12:45 p.m. All media must RSVP and present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. The RSVP and any inquiries regarding logistics should be directed to [email protected]. Please RSVP with the email address of the person(s) attending the event, so that we may reach them directly if details change.
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Luzerne County Woman Guilty of “Bath Salts” ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kerry Wylie, age 27, of Wilkes-Barre, Pennsylvania, pleaded guilty on May 8, 2019, before Senior U.S. District Court Judge James M. Munley, to conspiracy to distribute and possess with intent to distribute alpha-pvp, commonly known as “bath salts.”
According to United States Attorney David J. Freed, Wylie admitted to participating in the conspiracy between March 2014 and January 2016. The conspiracy involved the importation of alpha-pvp from suppliers in China, and the distribution of the drug to sub-distributors and customers in the Luzerne County area. Wylie admitted to being responsible for the possession with intent to distribute and distribution of approximately 1.5 kilograms of alpha-pvp.
Kerry Wylie was one of seven people indicted by a grand jury in August 2016. That indictment was the fourth indictment resulting from the lengthy investigation into “bath salts” trafficking conducted by Agents of the Department of Homeland Security, Agents of the Drug Enforcement Administration, United States Postal Inspectors, and members of the Pennsylvania State Police. In all, 18 people were charged as a result of the investigation, including a Texas-based couple who shipped “bath salts” to customers throughout the United States, including Pennsylvania.
Todd Morgans, of West Pittston, a major local supplier of “bath salts,” was previously sentenced to 135 months’ imprisonment. David Folweiler, a Luzerne County sub-distributor, was sentenced to 90 months’ imprisonment. One of the Texas-based suppliers, Treiu Thuy Duong, received a 70-month prison sentence. Alan Folweiler received a 63-month sentence. Frank Brennan was sentenced to 60 months’ imprisonment.
The investigation has resulted in the seizure and forfeiture of several firearms, thousands of dollars in cash, hundreds of silver coins, real property and bank accounts valued at more than $750,000.
Judge Munley ordered a pre-sentence investigation to be completed, and scheduled sentencing for August 9, 2019.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of 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.
The maximum penalty under federal law for this offenses is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Luzerne County Man Charged with Illegal Possession of Firearms and Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Bruce Redmond, age 30, of Dallas, Pennsylvania, was indicted by a federal grand jury on May 7, 2019, for illegal possession of firearms and drug trafficking in Luzerne County.
According to United States Attorney David J. Freed, the indictment charges Redmond with unlawful possession of firearms and ammunition, possession of a stolen firearm, possession of an illegal “short-barreled” shotgun, false statements in connection with the purchase of firearms, possession with intent to distribute methamphetamine, and aiding and abetting the distribution of suboxone.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kingston Police Department, and the Pennsylvania State Police. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the drug offenses is twenty years’ imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for the firearms offenses is ten years’ imprisonment, a term of supervised release, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Local Businessman is Indicted for Bribery Scheme Involving Former County ExecutiveRead the Press Release
St. Louis, MO –John Rallo, 53, formerly of St. Louis County, was charged with three counts of Honest Services Mail Fraud/Bribery. Rallo will appear before U.S. Magistrate Judge Bodenhausen for his initial appearance and arraignment on the Indictment – Friday, May 10 at 9:30 a.m., 15th floor South.
The Indictment charging John Rallo alleges that beginning in October 2014 and continuing through December 31, 2017, Stenger schemed to defraud and deprive the citizens of St. Louis County of their right to his honest and faithful services, and the honest and faithful services of Sheila Sweeney, through bribery and the concealment of material information. The purpose of the scheme was for Stenger to secretly use his official position to enrich himself through soliciting and accepting campaign contributions from Rallo and other individuals in exchange for favorable official action, and for Rallo and other individuals to enrich themselves and their companies by secretly obtaining favorable action for themselves and for their companies, through corrupt means.
Specifically, the Indictment alleges that Stenger, in exchange for campaign donations and several fundraising events, took official action to insure that John Rallo and his company, Cardinal Insurance, obtained insurance contracts through St. Louis County during 2015 and 2016. Further, the Indictment alleges that Stenger took official action to insure that John Rallo and his company, Cardinal Creative Consulting, obtained a sham 2016 consulting contract through the St. Louis County Port Authority. Additionally, Stenger took official action to insure that John Rallo and his company, Wellston Holdings, LLC, obtained options to purchase two properties in Wellston, Missouri which were held by the Land Clearance for Redevelopment Authority of St. Louis County during 2016 and 2017. The Indictment alleges that Rallo, Stenger, and Sweeney took steps to hide, conceal and cover up the illegal bribery scheme, including making false public statements.
If convicted, as to each charge Rallo faces a maximum penalty of 20 years in prison and a $250,000 fine. Restitution is also mandatory.
In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation and the Postal Inspection Service are investigating this case with the assistance of the Internal Revenue Service Criminal Investigations. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Lake Charles felon sentenced to 27 months in prison for possessing pistol, ammunitionRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that Louis Jones, 26, of Lake Charles, was sentenced Thursday to two years and three months in prison by U.S. District Judge Donald E. Walter for being a felon in possession of a pistol and ammunition. He was also sentenced to three years of supervised release.
Lake Charles Police responded to a disturbance on June 15, 2018 wherein a caller advised that an unknown male, later identified as the defendant, Louis Jones, pointed a firearm at a customer at a local business. The caller then followed Jones and gave a description of the vehicle he was driving to police and updated the officers on Jones’ location as he continued to travel through Lake Charles. Police intercepted Jones, questioned him about the incident and asked to search his vehicle. They located a Model PT92 AFS .9mm semi-automatic pistol and ammunition in the front passenger seat. Jones admitted to being on the scene of the business and possessing the firearm.
Jones is a felon who was convicted in April of 2014 for possession of cocaine. Under federal law, felons are not allowed to possess firearms and ammunition. He pleaded guilty to federal charges on October 31, 2019.
The ATF and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog prosecuted 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 lasting reductions in crime.
Kyle Man Convicted of First Degree MurderRead the Press Release
United States Attorney Ron Parsons announced that Clarence Yellow Hawk, age 29, of Kyle, South Dakota, was found guilty of First Degree Murder and Discharging a Firearm During a Crime of Violence as a result of a federal jury trial in Rapid City, South Dakota. Yellow Hawk was found not guilty of Possessing a Firearm with an Obliterated Serial Number. The jury returned the verdicts on May 3, 2019.
The convicted charges carry penalties of mandatory life in prison and a $250,000 maximum fine, as well as a $200 special assessment to the Federal Crime Victims Fund, and restitution.
Throughout the day on May 27, 2017, Clarence Yellow Hawk, a/k/a “Whodi” and Jamie Shoulders were with Scott Benson. During the mid-afternoon, Yellow Hawk and Shoulders traveled with Benson to meet with Christopher “Chris” E. Janis and another person. Benson drove his vehicle, Yellow Hawk rode in the front passenger seat, and Shoulders rode in the back seat. Benson parked his vehicle at a driveway approach approximately two miles north of Sharps Corner. Upon arriving, Benson exited the driver’s seat and entered the back seat of the minivan occupied by Chris Janis (driver’s seat) and his passenger. While Benson was in the minivan, Shoulders took a handgun from the car and walked to the minivan’s driver-door window, by Janis. Shoulders shot Chris Janis through the window using the handgun, which broke the glass, and then fired at least one additional shot at him. As shots rang out, Benson and the passenger began fleeing the minivan. Yellow Hawk exited Benson’s vehicle, approached the minivan and picked up the handgun Shoulders dropped, and shot Janis several additional times. Chris Janis died from his multiple gunshot wounds. Yellow Hawk and Shoulders fired at least 7 rounds at Janis.
Benson returned to the driver’s seat of his vehicle, Yellow Hawk got into the front seat, and Shoulders got into the back seat. Benson initially drove south towards Sharps Corner, then around the area before returning to another person’s house, where Yellow Hawk, Shoulders and Benson split up. During the drive, Yellow Hawk threw the firearm out the window, which was later recovered by law enforcement. The firearm used by Yellow Hawk and Shoulders to shoot Chris Janis belonged to Scott Benson.
“This judgment rendered by the jury represents justice for Chris Janis,” said U.S. Attorney Parsons. “And it is our hope that it will bring some measure of peace to his grieving family.”
This case was investigated by the Federal Bureau of Investigation and Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Kathryn N. Rich and Gregg Peterman prosecuted the case.
A presentence investigation was ordered and a sentencing date has been set for August 20, 2019. Jamie Shoulders pled guilty to Second Degree Murder. He will also be sentenced on August 20, 2019. Both Yellow Hawk and Shoulders are in the custody of the U.S. Marshals Service.
Kirkbride Center Agrees to Fine to Resolve Claims of Failing to Maintain Accurate Records of OpioidsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that CoreCare Behavioral Health Management, Inc., which does business as “Kirkbride Center,” a health care facility in Philadelphia, Pennsylvania, has agreed to pay the United States $160,200 in penalties to resolve allegations that it failed properly to account for highly addictive and frequently abused opioids, including methadone.
In addition to paying $160,200 in settlement to resolve the government’s allegations, Kirkbride Center has agreed to implement new practices and procedures to ensure accountability of its controlled substances, including the purchase of a new software system for secure and automated dispensing and tracking of methadone in clinical treatment settings.
This settlement arises from a Drug Enforcement Administration (DEA) investigation into Kirkbride Center’s opioid dispensing practices between 2014 and 2017. In response to the Department of Justice’s focus on combatting the opioid epidemic, the DEA has continued to conduct inspections and audits of pharmacies and narcotics treatment programs throughout the Eastern District of Pennsylvania, including Kirkbride Center.
The Controlled Substances Act (CSA) applies to all registered handlers of controlled substances, including pharmacies and narcotics treatment programs, and subjects them to strict requirements regarding inventory control and recordkeeping. These requirements ensure that DEA-licensed pharmacies and narcotics treatment programs account for controlled substances from the time they are purchased until they are dispensed to patients. The United States alleges that Kirkbride Center violated the CSA by negligently failing to keep accurate records and inventories associated with methadone liquid and tablets that Kirkbride Center purchased and dispensed for its narcotics treatment program between 2014 and 2017.
“This settlement demonstrates my office’s continued commitment to combating the opioid epidemic on all fronts,” said U.S. Attorney McSwain. “Part of our strategy is making sure that registered opioid handlers keep accurate records of these highly addictive and potentially dangerous drugs. All individuals and facilities, large or small, licensed to dispense controlled substances are responsible for maintaining accurate records, and all will be held accountable for any failures.”
The case was handled by Assistant United States Attorney Mark J. Sherer, with investigative assistance from auditor Denis Cooke and U.S. Drug Enforcement Administration Diversion Investigator Alexander Stross of the Philadelphia Field Division.
Justice Dept. Files Action to Enjoin Texas Doctors from Illegally Prescribing Highly Addictive OpioidsRead the Press Release
The United States Attorney’s Office for the Northern District of Texas and the Department of Justice’s Civil Division today announced an action to stop two Texas doctors from unlawfully prescribing powerful opioids linked to abuse and diversion. To protect the public, the United States sought and the court granted immediate relief through a temporary restraining order.
In a civil complaint unsealed today in the Northern District of Texas, the United States alleges that Cesar B. Pena Rodriguez M.D., and Leovares A. Mendez M.D., were prescribing in violation of the Controlled Substances Act. According to the complaint, the defendants issued thousands of prescriptions without apparent regard for patient harm, including prescriptions for a combination of an opioid, a short-acting benzodiazepine, and a muscle relaxer – a dangerous and frequently-abused drug cocktail known as the “trinity.” The United States Attorney’s Office worked with the Consumer Protection Branch of the Justice Department’s Civil Division in this effort.
“With opioid addiction ravaging communities across the nation, we are going to fight against doctors who are handing out prescriptions like candy,” said U.S. Attorney for the Northern District of Texas Erin Nealy Cox. “We are determined to stem the tide of the crisis and we will use all the legal authorities at our disposal -- both criminal and civil.”
“The prescribing patterns of the doctors in this case are extremely disturbing and present a significant threat to the community,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department of Justice will use every available tool to stop doctors who fail to uphold their legal obligation to prescribe controlled substances properly.”
The complaint alleges that Dr. Pena Rodriguez and Dr. Mendez issued numerous prescriptions without a legitimate medical purpose and outside the usual course of professional practice. Specifically, the complaint alleges that in the course of an investigation of the defendants by the U.S. Drug Enforcement Administration (DEA), the defendants repeatedly issued prescriptions for controlled substances, including hydrocodone, alprazolam, and tramadol, to undercover agents posing as prospective new patients in exchange for $250 cash payments. The complaint alleges that the defendants issued prescriptions despite performing only minimal or perfunctory medical evaluations, at best, during the visits. According to the complaint, the defendants sold medically unjustified prescriptions to undercover agents in all but one of 25 undercover visits.
“The DEA has teams of investigators specialized in finding negligence when writing perilous prescription, which can cause a harmful addiction or potential overdose,” said Special Agent in Charge Clyde E. Shelley Jr. of the DEA Dallas Field Division. “The DEA will investigate the doctors who conduct this kind of practice and continue to combat the opioid crisis.”
According to court documents that the United States filed with its complaint, the defendants’ troubling prescribing practices were widespread and raised multiple warning signs or “red flags” of abuse and diversion, such as patient overdoses and prescriptions issued to groups of related individuals as well as to individuals who traveled unusual distances to receive their controlled substances.
The action represents an innovative use of the Department’s civil enforcement authorities – a tactic amplified by the Attorney General’s Prescription Interdiction & Litigation (PIL) Task Force, which was formed in early 2018 to promote deployment of all available criminal, civil, and regulatory tools to reverse the tide of opioid overdoses in the United States.
Judge Karen Scholer of the U.S. District Court for the Northern District of Texas issued the temporary restraining order. Along with injunctive relief, the United States seeks civil monetary penalties.
The United States is represented by Northern District of Texas Opioid Coordinator Lindsey Beran and Assistant U.S. Attorney Sarah Delaney and Trial Attorneys Arturo DeCastro and Anwar Graves of the Justice Department’s Consumer Protection Branch. This investigation is being conducted by the DEA.
A complaint is merely an allegation and there has been no determination of liability.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
Justice Department Files Action to Enjoin Texas Doctors from Illegally Prescribing Highly Addictive Opioids and Other Controlled SubstancesRead the Press Release
The Department of Justice’s Civil Division and the United States Attorney’s Office for the Northern District of Texas announced an action today to stop two Texas doctors from unlawfully prescribing powerful opioids linked to abuse and diversion. To protect the public, the United States sought and the court granted immediate relief through a temporary restraining order.
In a civil complaint unsealed today in the Northern District of Texas, the United States alleges that Cesar B. Pena Rodriguez M.D., and Leovares A. Mendez M.D., were prescribing in violation of the Controlled Substances Act. According to the complaint, the defendants issued thousands of prescriptions without apparent regard for patient harm, including prescriptions for a combination of an opioid, a short-acting benzodiazepine, and a muscle relaxer – a dangerous and frequently-abused drug cocktail known as the “trinity.” The United States Attorney’s Office worked with the Consumer Protection Branch of the Justice Department’s Civil Division in this effort.
“With opioid addiction ravaging communities across the nation, we are going to fight against doctors who are handing out prescriptions like candy,” said U.S. Attorney for the Northern District of Texas Erin Nealy Cox. “We are determined to stem the tide of the crisis and we will use all the legal authorities at our disposal -- both criminal and civil.”
“The prescribing patterns of the doctors in this case are extremely disturbing and present a significant threat to the community,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department of Justice will use every available tool to stop doctors who fail to uphold their legal obligation to prescribe controlled substances properly.”
The complaint alleges that Dr. Pena Rodriguez and Dr. Mendez issued numerous prescriptions without a legitimate medical purpose and outside the usual course of professional practice. Specifically, the complaint alleges that in the course of an investigation of the defendants by the U.S. Drug Enforcement Administration (DEA), the defendants repeatedly issued prescriptions for controlled substances, including hydrocodone, alprazolam, and tramadol, to undercover agents posing as prospective new patients in exchange for $250 cash payments. The complaint alleges that the defendants issued prescriptions despite performing only minimal or perfunctory medical evaluations, at best, during the visits. According to the complaint, the defendants sold medically unjustified prescriptions to undercover agents in all but one of 25 undercover visits.
“The DEA has teams of investigators specialized in finding negligence when writing perilous prescription, which can cause a harmful addiction or potential overdose,” said Special Agent in Charge Clyde E. Shelley Jr. of the DEA Dallas Field Division. “The DEA will investigate the doctors who conduct this kind of practice and continue to combat the opioid crisis.”
According to court documents that the United States filed with its complaint, the defendants’ troubling prescribing practices were widespread and raised multiple warning signs or “red flags” of abuse and diversion, such as patient overdoses and prescriptions issued to groups of related individuals as well as to individuals who traveled unusual distances to receive their controlled substances.
The action represents an innovative use of the Department’s civil enforcement authorities – a tactic amplified by the Attorney General’s Prescription Interdiction & Litigation (PIL) Task Force, which was formed in early 2018 to promote deployment of all available criminal, civil, and regulatory tools to reverse the tide of opioid overdoses in the United States.
Judge Karen Scholer of the U.S. District Court for the Northern District of Texas issued the temporary restraining order. Along with injunctive relief, the United States seeks civil monetary penalties.
The United States is represented by Northern District of Texas Opioid Coordinator Lindsey Beran and Assistant U.S. Attorney Sarah Delaney and Trial Attorneys Arturo DeCastro and Anwar Graves of the Justice Department’s Consumer Protection Branch. This investigation is being conducted by the DEA.
A complaint is merely an allegation and there has been no determination of liability.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
Jury Finds Fresno Man Guilty on 6 Counts of Drug and Sex Trafficking OffensesRead the Press Release
FRESNO, Calif. — On Thursday, a federal jury found Filiberto “Beto” Chavez, 37, of Fresno, guilty of conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, conspiracy to engage in interstate travel for prostitution and two counts of use of a facility of interstate commerce to promote prostitution, U.S. Attorney McGregor W. Scott announced.
U.S. Attorney Scott stated: “This verdict is the result of law enforcement partners at the federal, state and local level working as one to pursue criminal gangs and their associates. We will continue to work tirelessly together to protect our communities and to hold accountable those who threaten our safety.”
Fresno Police Chief Jerry Dyer stated: “It excites me to see ruthless gang members removed from our society, especially those like Filiberto Chavez who treat women as property through violent acts of sex trafficking. Filiberto Chavez and his fellow conspirators have proven they belong behind bars.”
Fresno County District Attorney Lisa A. Smittcamp stated, “I congratulate U.S. Attorney Scott and Assistant U.S. Attorneys Kimberly Sanchez, Jeffrey Spivak, and Thomas Newman on an outstanding job bringing Filiberto Chavez to justice. This conviction is yet another example of how cooperation between our local law enforcement agencies, the District Attorney and the United States Attorney works for the people of Fresno County. The Federal and local teams came together under the umbrella of the Multi-Agency Gang Enforcement Consortium and worked as one, focused on high ranking members of the Lewis Street Bulldogs criminal street gang. Special thanks to Senior Deputy District Attorney Lewis and the Officers and Deputies of MAGEC who gave their all to put this case together.”
According to court documents and testimony, Chavez sold methamphetamine to a convicted codefendant, Robert Lockhart, on July 8, 2017. Convicted codefendant Amina Padilla stored methamphetamine for Chavez and gave a portion of what she had stored to convicted codefendant Carlos Melgar to deliver to Lockhart. On July 11, 2017, agents served search warrants at Padilla’s and Lockhart’s apartments and seized methamphetamine from both.
Additionally, in June and July of 2017, Chavez was pimping a prostitute using the assistance of Padilla to post prostitution ads on the internet. Chavez invited convicted codefendants Carlos Montano and Miguel Murillo to join him in New York to engage in prostitution activities with each of their prostitutes. On July 2, 2017, Chavez flew from California to New York with his prostitute. On July 18, 2017, Montano and Murillo flew from California to New York and subsequently began engaging in prostitution activities.
This case is the product of an investigation by Homeland Security Investigations, Federal Bureau of Investigation, Drug Enforcement Administration, Fresno Police Department, Multi‑Agency Gang Enforcement Consortium, Fresno County Sheriff’s Office, and Fresno County District Attorney’s Office. Assistant U.S. Attorneys Kimberly A. Sanchez, Jeffrey Spivak, and Thomas Newman are prosecuting the case.
Chavez is scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O’Neill on August 5. Chavez faces a maximum statutory penalty of life in prison and a $30,750,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven 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.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Jefferson County Man Admits Purchasing Firearms for Another PersonRead the Press Release
PITTSBURGH, Pa. - A Jefferson County resident pleaded guilty in federal court on Tuesday to a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Brock Powell, 43, of Summerville, PA, pleaded guilty to one count of making false statements in relation to the acquisition of firearms, before Senior United States District Court Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that, on January 14, 2017, Powell straw purchased three firearms from Grice Gun Shop in Clearfield, PA on behalf of Peter DiGiacomo, who then transferred them to a drug dealer in Niagara Falls, NY. The firearms included: a .40 caliber semiautomatic Walther pistol; a .40 caliber semiautomatic Taurus pistol; and a .40 caliber semiautomatic Smith & Wesson pistol. The defendant confessed to straw purchasing the firearms and admitted that he was a drug addict.
Judge Conti scheduled sentencing for Sept. 19, 2019. The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Powell’s bond.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation that led to the prosecution of Powell.
Jamestown Man Going to Prison for Selling MethamphetamineRead 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 James H. Bess, Jr., 63, Jamestown, NY, who was convicted of possession with intent to distribute of five grams or more of methamphetamine, was sentenced to serve 84 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that on October 2, 2016, law enforcement officers conducted a controlled purchase with the defendant. During the buy, which took place inside Bess’s vehicle, the defendant sold a quantity of methamphetamine to another individual in exchange for $800 cash. Bess was arrested at that time.
During a search of the defendant’s vehicle, officers recovered three bags of methamphetamine. Officers also searched a room at the Red Roof Inn in the Town of Ellicott, which Bess had previously rented. During that search, officers recovered two additional bags of methamphetamine.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division and the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb.
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Italian National Pleads Guilty to Cocaine TraffickingRead the Press Release
BOSTON – An Italian national pleaded guilty yesterday in federal court in Boston in connection with trafficking cocaine on board maritime vessels.
Gabriele Biondo, a/k/a El Italiano, 43, pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine on board a vessel subject to the jurisdiction of the United States and one count of possession with intent to distribute and distribution of five kilograms or more of cocaine on board a vessel subject to the jurisdiction of the United States. Biondo is an Italian national who was extradited from Spain and made an initial appearance in federal court in Boston on Feb. 21, 2019.
Since at least as early as 2013, Biondo and several co-conspirators were involved in an operation that trafficked Colombian cocaine by boat via Venezuela to Spain, Puerto Rico, and other locations. Co-defendant Henry Carrillo Ramirez sourced the cocaine in Catatumbo, Colombia, and arranged for the drugs to be transported to Puerto La Cruz, Venezuela. Thereafter, based upon an agreed-upon date, time, sea coordinates, and a code word, small boats carrying the cocaine would meet a fishing vessel located offshore allegedly arranged by Carrillo Ramirez. The boats provided the code word, and then the drugs were transferred to the fishing vessel for transport to Europe.
In June 2014, the drug trafficking organization successfully orchestrated the delivery of 1,200 kilograms of cocaine to Spain. In particular, Carrillo Ramirez allegedly met with an associate of Biondo to plan the shipment, and Biondo arranged for sailboats to smuggle the cocaine to Spain. Initially, the cocaine was delivered to a stash house on Isla Margarita. Once received on Isla Margarita, the cocaine was divided into two shipments, one consisting of 800 kilograms and the other consisting of 400 kilograms. In June 2014, the first sailboat departed from Grenada to the designated coordinates to receive the first 800 kilograms of cocaine bound for Spain. The transportation cost for this shipment was $640,000. One day later, the second shipment of 400 kilograms of cocaine departed. Both shipments arrived in Spain.
Two months later, the drug trafficking organization arranged for the delivery of another shipment to Spain. In particular, in August 2014, Colombian National Police intercepted communications regarding a shipment of cocaine from South America to Europe. Biondo identified customers in Spain and arranged for them to receive the cocaine shipment. Biondo tracked the load and learned that the cocaine shipment had department from Venezuela. On Aug. 25, 2014, an international law enforcement operation located the vessel shipping the drugs. The Spanish Guardia Civil boarded the vessel in international waters and seized 960 kilos of cocaine.
In December 2014, Biondo and his co-conspirators arranged to send another shipment of 800 kilograms of cocaine to Spain. Biondo again identified customers in Spain and arranged for them to receive the cocaine shipment. On Dec. 30, 2014, the Spanish Guardia Civil boarded another vessel in international waters and seized an additional 728 kilos of cocaine.
In all, law enforcement seized approximately 1,688 kilograms of cocaine from the drug trafficking organization.
Biondo is the second defendant to plead guilty in this case. Charges remain pending against two co-defendants, and another co-defendant remains a fugitive.
The conspiracy and distribution charges each provide for a sentence of no greater than life in prison, a life term of supervised release and a $10 million fine. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. Valuable assistance was provided by the Internal Revenue Service’s Criminal Investigations in Boston, the United States Coast Guard, the Colombian National Police, the Spanish Guardia Civil, the Spanish National Police, and the Portuguese Air Force. Assistant U.S. Attorney Linda Ricci, Chief of Lelling’s Narcotics and Money Laundering Unit, is prosecuting the case.
The details contained in the indictment are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Homeland Security Investigations Shares Nearly $300,000 with Hazleton City Police Department for Assistance in Narcotics InvestigationRead the Press Release
The Hazleton City Police Department received a check in the amount of $295,787.11 today from Homeland Security Investigations Philadelphia office.
HARRISBURG – U.S. Attorney David J. Freed of the United States Attorney’s Office for the Middle District of Pennsylvania joined Special Agent in Charge of Homeland Security Investigations (HSI) Philadelphia, Marlon V. Miller, in presenting a check in the amount of $295,787.11 today to the Chief of Police for the Hazleton City Police Department, Jerry Speziale.
A HSI New York Darknet investigation identified Joshua Sweet, age 26, of Hazleton, Pennsylvania, as a prolific Darknet vendor who manufactured and distributed substantial quantities of narcotics including cocaine, alprazolam, fentanyl, and marijuana, on the Darknet. He laundered his illicit proceeds on the Darknet in an attempt to conceal his illegal activities from law enforcement. Over the course of the yearlong probe, HSI and the Hazelton City Police Department seized evidence including significant quantities of narcotics, equipment to make counterfeit pills, cash, and bitcoin as drug trafficking proceeds.
The U.S. Attorney’s Office for the Middle District of Pennsylvania in conjunction with HSI Philadelphia special agents, charged Sweet in a criminal complaint on May 16, 2018, with possession with intent to distribute controlled substances.
“Homeland Security Investigations is proud to return a significant portion of the money seized in this case to the police department, where it will be put to good use improving the public safety for all citizens in this area," said Marlon V. Miller, special agent in charge of HSI Philadelphia. "We recognize the key role that our local law enforcement partners play in addressing the significant threat that narcotics pose on our communities. Sadly, the perils of narcotics trafficking do not just affect our big cities, they also having a significant impact on our smaller communities."
“While we can and will continue to focus on public safety, effective investigations allow us to also disrupt the business of crime by seizing ill-gotten gains,” said U.S. Attorney David J. Freed. “This presents the opportunity to share these assets with local partners and communities that have been negatively impacted by criminal activity. Because of the great work of HSI and Hazleton Police Department, the law-abiding citizens of Hazleton will benefit for years to come.”
“The collaboration between us has unleashed the power of us all to accomplish what none can do alone,” said Jerry Speziale, Chief of Police for the Hazleton City Police Department. “These funds will support future law enforcement endeavors and equipment so the taxpayer don’t shoulder the burden.”
The funds resulted from an investigation by HSI Philadelphia’s Cyber Crime Investigations Task Force (C2iTF), the Hazleton City Police Department, U.S. Postal Inspection Service, and the Pennsylvania State Police. Assistant United States Attorney Sean Camoni is prosecuting the case.
HSI’s asset forfeiture program exemplifies HSI’s efforts in the area of identification, seizure and forfeiture of assets that represent the proceeds of, and/or were used to facilitate federal violations under the investigative jurisdiction of HSI. The program adheres to the principal belief that the utilization of consistent and strategic application of asset forfeiture laws is necessary and vital in order to disrupt and dismantle the financial infrastructure of criminal enterprises and other national security threats. Asset forfeiture is an essential element of comprehensive and effective law enforcement as it deprives trans-national criminal organizations of their illicitly obtained assets. Accordingly, HSI brings to bear considerable authority, expertise and resources in the area of asset forfeiture. The forfeiture of assets can be and is utilized as a sanction in criminal, civil and administrative investigative activities.
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Hartshorne Man Sentenced to 151 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Paul Dean Cantrell, age 57, of Hartshorne, Oklahoma, was sentenced to 151 months’ imprisonment and 3 years of supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). The charges arose from an investigation by the Pittsburg County Sheriff’s Department, the District 18 Narcotics Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about January 28, 2018, within the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “Methamphetamine and other dangerous drugs are delivered to the streets of communities large and small by people who care nothing about the tragedy they are causing. Local agencies and law abiding residents feel the impact of the destruction. The U.S. Attorney’s Office and federal law enforcement agencies appreciate the opportunity to help our local law enforcement partners in their ongoing work to serve and protect as we were able to do in this case.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. First Assistant United States Attorney Christopher Wilson represented the United States.
Hartland Men Charged with Federal Firearms OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned indictments charging RORY MOCARSKY, 47, and DAVID BOURNE, 37, both of Hartland, with firearms offenses.
As alleged in court documents and statements made in court, on December 6, 2018, Connecticut State Police responded to Mocarsky’s residence in Hartland after reports of gunfire and explosions at the property, and after viewing a YouTube video showing Mocarsky and Bourne engaged in activities involving firearms and explosives. A search of the property revealed an 8mm rifle, three .22 caliber rifles, a suspected homemade silencer, ammunition, a suspected improvised explosive device (“IED”), suspected post-blast IED devices and fragments, suspected explosive materials, and other electronic devices. A related search of a location in the Tunxis State Forest in East Hartland, where Mocarsky and Bourne had recorded explosions, revealed metal fragments, a section of PVC pipe, and PVC pipe fragments from a suspected IED.
It is alleged that Mocarsky was convicted of a state felony drug offense in 1994. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On May 7, 2019, the grand jury returned an indictment charging Mocarsky with one count of possession of firearms by a convicted felon. Mocarsky was originally arrested on a federal criminal complaint on April 17, 2019. He is released on a $10,000 bond and will be arraigned on the indictment on May 17.
Also on May 7, the grand jury returned an indictment charging Bourne with two counts of possession of unregistered destructive devices. Bourne was arrested yesterday. He appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford, entered a plea of not guilty to the charges and is detained pending a detention hearing that is scheduled for May 14.
Each of the charges carry a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco Firearms and Explosives, and Connecticut State Police. The cases are being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Former South Florida Attorney Sentenced to Prison in Relation to Pump and Dump Securities Fraud SchemeRead the Press Release
A former South Florida attorney was sentenced to 28 months in prison in relation to a pump and dump securities fraud scheme involving the shares of Valentine Beauty, Inc. (“VLBI”).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Mark E. Fisher, 53, of Boca Raton, Florida, was sentenced today by U.S. District Judge Kathleen M. Williams to 28 months in prison, to be followed by three years of supervised release. Fisher also was ordered to forfeit $8.4 million. Previously, Fisher pled guilty to one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 371 (Case No. 18-CR-20823-KMW). Co-defendant Joseph F. Capuozzo, 57, of Davie, Florida, also pled guilty to the same offense and was sentenced on April 8, 2019, to 5 years’ probation.
Previously, Eddy Ubaldo Marin, 56, of Ft. Lauderdale, Florida, and Shane R. Spierdowis, 27, formerly of Boca Raton, were charged with securities fraud offenses in connection with the same VLBI scheme. Marin pled guilty and was sentenced on September 5, 2018, to 210 months in prison by U.S. District Judge Darrin P. Gayles (Case No. 18-CR-20354-DPG). Spierdowis also pled guilty and was sentenced by U.S. District Judge Ursula Ungaro to 5 years’ probation. (Case No. 18-CR-20355-UU). Marin is currently a fugitive.
According to court documents, VLBI was a beauty products supply company with operations in Sunrise, Florida, that marketed its products on television infomercials and elsewhere. Shares of VLBI stock were publicly traded and quoted over the counter on OTC Link. In approximately November 2013, Marin and other accomplices arranged to secretly obtain a controlling interest in VLBI stock by issuing shares to certain third parties, including Green Tree Capital, Inc., a company controlled by Marin and Capuozzo, based in Ft. Lauderdale, Florida.
Fisher, formerly a practicing lawyer licensed to practice in Florida and New York, was a securities lawyer based in Boca Raton who allegedly became involved with the manipulation of VLBI shares at the invitation of Marin. Fisher allegedly executed various false and fraudulent documents to facilitate the scheme, including certain legal opinion letters that falsely indicated that shares controlled by Marin and other conspirators, were not in fact owned or controlled by “affiliates” of the companies. Such letters allowed shares of VLBI to be falsely classified as “free trading” and thus sold to the public, when in reality they were restricted. In March and April, 2014, Marin, Fisher, Capuozzo, Spierdowis, and other conspirators arranged to transfer a substantial number of shares into brokerage accounts in the name of fictitious entities, but in reality controlled by the conspirators. In addition, according to court documents, Fisher, Capuozzo and other conspirators knew that Marin was a convicted felon and attempted to conceal his role in the scheme by keeping his name off of corporate documents. To facilitate the concealment of Marin’s role, Capuozzo became the listed owner of an entity that held Marin’s VLBI shares and traded the shares at the direction of Marin. Capuozzo also served as the nominee Chief Executive Officer of VLBI, while acting at the direction of Marin and the conspirators.
Thereafter, beginning in approximately May 2014 and continuing through in or around September 2014, Marin, Fisher, Capuozzo, Spierdowis, and others arranged for VLBI to issue rosy press releases, while also using internet marketing and penny stock newsletters to tout VLBI stock. These efforts were intended to artificially increase the trading volume and price of VLBI shares, so that Marin, Fisher, Capuozzo, Spierdowis and their co-conspirators could secretly sell shares at a profit. During the conspiracy period, the conspirators sold approximately $1 million worth of VLBI shares to the investing public.
In approximately June 2014, Marin began a term of federal imprisonment due to a different federal offense, and was ultimately incarcerated at FCI Miami. While Marin was at FCI Miami, Fisher, Capuozzo, Spierdowis, and others continued the stock manipulation scheme, while keeping a larger portion of the trading profits for themselves. The conspirators continued to sell shares of VLBI, while continuing the same pattern of issuing press releases and engaging in coordinated sales of shares, until approximately April 26, 2016, when trading in VLBI shares was suspended by the U.S. Securities and Exchange Commission (SEC).
Previously, the SEC filed parallel civil enforcement actions against Fisher, Capuozzo, Marin and Spierdowis.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office. She also thanked the SEC’s Miami Regional Office for their assistance. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy, and Assistant U.S. Attorney Alison Lehr is handling asset forfeiture related to the matter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Medical Assistant Pleads Guilty to Prescription FraudRead the Press Release
Amanda Sheridan Forged Prescriptions for Pain Pills and Other Controlled Substances
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Amanda Sheridan, 38, of Hastings, Michigan pled guilty to acquiring controlled substances by fraud. She faces up to four years in federal prison for her crime.
Sheridan, who worked as a medical assistant at a doctor’s office in Grand Rapids, Michigan, stole a doctor’s prescription pads and forged his signature on 77 prescriptions for Norco, Adderall, and other highly-abused controlled substances. She wrote the forged prescriptions to herself and two other individuals, and obtained more than 4,000 prescription pills before she was caught.
"This type of crime feeds the opioid epidemic, which we and our partner agencies are committed to fighting," U.S. Attorney Birge said. "That commitment includes federal prosecutions of individuals who abuse their positions in the medical field to divert prescription controlled substances to the street."
The case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Clay Stiffler prosecuted the case.
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Former Massachusetts State Trooper Sentenced for Overtime AbuseRead the Press Release
BOSTON – A suspended Massachusetts State Police Trooper was sentenced today in federal court in Boston in connection with being paid over $5,900 for overtime hours that he did not work.
Kevin Sweeney, 40, of Braintree, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to two months in prison, one year of supervised release (the first three months of which will be served in home detention), and was ordered to pay a fine of $4,000 and restitution in the amount of $11,103. In September 2018, Sweeney pleaded guilty to one count of embezzlement from an agency receiving federal funds and one count of wire fraud.
Sweeney was an MSP Trooper assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. In 2016, Sweeney earned $218,512, which included over $95,000 in overtime pay.
Sweeney admitted that between Sept. 1, 2016, and Dec. 31, 2016, he was paid over $5,900 for overtime shifts that he either did not work at all or from which he left early and that his fraudulent citations cost the Commonwealth more than $5,000. Sweeney concealed his fraud by submitting fraudulent citations designed to create the appearance that he had worked overtime hours that he had not, and falsely claimed in MSP paperwork and payroll entries that he had worked the entirety of his overtime shifts.
For example, on Dec. 14, 2016, Sweeney claimed in MSP payroll submissions and other paperwork to have worked a “D AIRE” overtime shift from 7:00 p.m. to 11:00 p.m. Sweeney claimed to have written eight motor vehicle citations during that shift and submitted copies of those citations to MSP as evidence that he had worked. Yet, Sweeney’s cruiser radio was not turned on during the overtime shift, he did not run any driver histories during the shift, and Registry of Motor Vehicle (RMV) records reflect that none of the motorists that Sweeney claims to have cited actually received a citation that day.
In another instance, on Dec. 21, 2016, the RMV did have copies of two of the citations Sweeney claimed to have written during the overtime shift he claimed to have worked, but closer inspection revealed that Sweeney had falsified the times of those citations on the copies submitted to the MSP. The RMV copies revealed that the citations had been written at 5:00 p.m. and 5:05 p.m., which was written on the citations in military time as “1700” and “1705.” On the copies of those same citations submitted to MSP, however, Sweeney changed “1700” and “1705” to “700” and “705” so that it would appear to MSP that the citations had been written during the 7:00 p.m. to 11:00 p.m. overtime shift that Sweeney did not work. And, like Dec. 14, Sweeney’s cruiser radio was not turned on during the overtime shift, he did not run any driver histories during the shift, and Registry of Motor Vehicle (RMV) records reflect that the other six motorists that Sweeney claims to have cited did not actually receive a citation that day.
The overtime in question involved the Accident and Injury Reduction Effort program (AIRE) and the “X-Team” initiative, which were intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers assigned to target vehicles traveling at excessive speeds.
In 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit prosecuted the case.
Former Executive Director Indicted for Embezzling Hundreds of Thousands of Dollars from Queens-Based Non-ProfitRead the Press Release
Earlier today, in federal court in Brooklyn, a nine-count indictment was unsealed charging Semeo Doe, the former Executive Director of the Action Center for Education and Community Development, Inc. (Action Center) in Far Rockaway, Queens, with embezzling, and conspiring to embezzle, hundreds of thousands of dollars from that charity for his personal use. Doe was also charged with aggravated identity theft, wire fraud and wire fraud conspiracy in connection with misrepresentations he made to the New York City Department of Youth and Community Development. Doe was arrested this morning and is scheduled to be arraigned this afternoon before United States Magistrate Judge Peggy Kuo.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Margaret Garnett, Commissioner, New York City Department of Investigation (DOI), and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
As is alleged in the indictment, between 2010 and May 2019, Doe served as a Director, and as the Executive Director, of Action Center, a not-for-profit organization that provided services to children and young adults, and provided meals to individuals in need. Doe allegedly embezzled hundreds of thousands of dollars of Action Center funds to pay for personal expenses including international vacations, jewelry, luxury cars and cosmetic surgery. As part of the scheme, he also caused Action Center to submit reimbursement requests for costs that were not incurred — including financial compensation for two employees for work allegedly performed after their deaths. Doe concealed his scheme in part by forging the signatures of Action Center employees on checks he had issued in the employees’ names, and then endorsed the checks and deposited them into his personal bank account.
“As alleged, Doe stole money that was supposed to feed the hungry and provide children with after-school services, and used it to finance his lavish lifestyle,” stated United States Attorney Donoghue. “Today’s indictment serves notice that those who steal from charities to line their pockets will pay the price in the end.”
“It’s difficult to imagine a justification for embezzling money slated to provide services for children and adults in need, but Doe was able to excuse this behavior—at least in some part—in exchange for luxurious personal items and international travel,” stated FBI Assistant Director-in-Charge Sweeney. “Corrupting city-funded nonprofits isn’t just disgraceful, it’s also a federal crime.”
“This defendant allegedly diverted funds meant for youth and adult programming in Queens into his own pockets, using hundreds of thousands of public dollars he funneled through a shell corporation to pay for expenses for himself and his family, according to the charges,” stated DOI Commissioner Garnett. “Fraud involving City nonprofits robs New Yorkers of programming that enriches lives and provides opportunity. DOI is proud to work with the U.S. Attorney for the Eastern District of New York and the Federal Bureau of Investigation to investigate these crimes and hold accountable individuals who corrupt City-funded nonprofits for personal gain.”
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the embezzlement charge, the defendant faces a maximum sentence of 10 years’ imprisonment. If convicted of conspiracy to embezzle public funds, the defendant faces a maximum sentence of five years’ imprisonment. If convicted of wire fraud or conspiracy to commit bank fraud, the defendant faces a maximum sentence of 20 years. If convicted of aggravated identity theft, the defendant faces a mandatory sentence of two years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Nicholas J. Moscow is in charge of the prosecution.
The Defendant:
SEMEO DOE
Age: 57
Far Rockaway, New YorkE.D.N.Y. Docket No. 19-CR-218 (JBW)
Former Credit Union Teller and Accomplice Plead Guilty to Conspiracy and Identity Theft ChargesRead the Press Release
Nashville, Tenn. – May 10, 2019 - Nicole C. Walker, 40, of Clarksville, Tennessee, pleaded guilty today in U.S. District Court to conspiracy to commit bank fraud and aggravated identity theft, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. LaToya Chambers, 42, of Nashville, Tennessee, pleaded guilty to the same charges earlier this year.
Chambers, a former teller at NGH Credit Union, (now Cornerstone Financial Credit Union) and Walker were indicted on December 19, 2018, after an investigation determined that Chambers had used her position to obtain personal identifying information of credit union customers. During their plea hearings, Chambers and Walker admitted that from March 2018 through July 2018, Chambers shared the personal information that she had obtained with Walker, who used the identities to make fraudulent withdrawals from the victims’ credit union accounts without their knowledge. Chambers and Walker divided the proceeds of many of the fraudulent transactions between themselves. Several of the credit union customers were elderly and had accumulated assets. According to court records, the financial institutions involved in these transactions lost over $80,000.
Chambers and Walker each face up to 32 years in prison and up to a $1million fine when they are sentenced later this year.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher C. Sabis. This case is supported by the Department of Justice’s Elder Justice Initiative, which coordinates the Department’s activities combatting elder abuse, neglect, and financial exploitation. This case is a product of the Elder Justice Task Force of the United States Attorney’s Office for the Middle District of Tennessee. For more information about the Department’s Elder Justice Initiative and the Elder Justice Task Force, see https://www.justice.gov/elderjustice/ and https://www.justice.gov/usao-mdtn/elder-justice-task-force.
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Former Chairman of the Rochester Housing Authority Indicted for Lying to the FBIRead 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 a federal grand jury has returned an indictment charging George H. Moses, 50, of Rochester, NY, with two counts of making false statements to Special Agents of the FBI. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the indictment and a previously filed complaint, the defendant was the Chairman of the Board of Commissioners of the Rochester Housing Authority (RHA), which provides housing opportunities and services for the Rochester community and a board member of the Rochester Housing Charities (RHC). The RHA annually receives millions of dollars from HUD.
On March 25, 2015, defendant Moses, as Chairperson of the Board of RHA, caused that Board: (a) to appoint him as one of the three new board members of the RHC, and (b) to approve a loan by the RHA to the RHC in the amount of $300,000.
Subsequently, the RHC entered into an $87,500 one year contract with Capital Connection Partners LLC (CCP). CCP then contracted with Adam McFadden and his company, Caesar Development LLC, executed a contract with CCP entitled the Pass Through Funding and Services Agreement, which provided that CCP would pass through 75% of the funds it received from the RHC to Caesar Development LLC.
In the course of an investigation into these contracts between RHC and CCP and between CCP and Caesar Development LLC, Special Agents of the FBI had occasion to interview defendant Moses regarding his knowledge of those contracts and payment of funds pursuant to them. As alleged in the indictment, during the course of those interviews Moses made the following materially false statements to the FBI:
• When asked how RHC learned of CCP, defendant Moses falsely stated that he could not recall specifically who brought CCP to the attention of the RHC, when in truth and in fact, defendant Moses knew that McFadden had brought CCP to his attention and to the attention of the RHC.
• When asked whether he knew if CCP had any subcontractors doing work under the RHC and CCP Contract, Moses stated that he was unaware of any sub-contractors that CCP utilized to execute the RHC and CCP Contract, when in truth and in fact, defendant Moses knew that McFadden and his company, Caesar Development LLC were allegedly performing work on behalf of CCP in connection with CCP’s contract with RHC.
• When told that Adam McFadden and his company received money from the RHC and CCP Contract, defendant Moses stated that he was surprised that McFadden and Caesar Development LLC received such money, when in truth and in fact, defendant Moses knew that McFadden and Caesar Development LLC, had received such money.
• When asked about an RHC board meeting held on May 12, 2015, defendant Moses stated he did not know who typed the minutes and the first time he saw the minutes of the meeting was at an RHA board meeting, when in truth and fact, he was aware that Adam McFadden typed and prepared the minutes which he received by e-mail on June 19, 2015, prior to an RHA meeting;
• When discussing a meeting held between CCP and the boards of the RHA and RHC on December 11, 2015, defendant Moses stated that he was surprised that McFadden was also at the meeting, when in truth and in fact, defendant Moses knew McFadden would be in attendance at such meeting.
The defendant was arraigned before U.S. Magistrate Judge Marian W. Payson and released on conditions.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary.
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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Former Cedar Falls Man Sentenced to 27 Months in Federal Prison for Attempted Transfer of Obscene Material to a MinorRead the Press Release
A man who attempted to transfer obscene material to a minor was sentenced on May 8, 2019, to 27 months in federal prison.
Matthew Neberman, age 31, formerly of Cedar Falls, Iowa, received the sentence after an October 30, 2018, guilty plea to one count of attempted transfer of obscene material to a minor. In a plea agreement, Neberman admitted that, in 2016, he masturbated on webcam in order to persuade, induce, and entice a person who he believed was a 13-year-old girl to engage in sex acts with him and to produce sexually explicit depictions of herself and send these depictions to him.
Neberman was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Neberman was sentenced to 27 months’ imprisonment. A special assessment of $100 was imposed, and Neberman must also serve a 3-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 18-2045.
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Forestville Man Pleads Guilty to Possession of Child PornographyRead 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 Joseph Harvey, 55, of Forestville, NY, pleaded guilty to possession of child pornography before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that on May 16, 2016, the defendant possessed 37 videos and 51 images of child pornography. Some of the images included prepubescent minors, and depictions of violence.
In addition, between January 16 and May 14, 2016, the defendant exchanged text messages with another man in which they discussed child pornography. During those text exchanges, Harvey distributed and received images of child pornography.
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 September 17, 2019, at 9:30 a.m. before Judge Vilardo.
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Florida Man Pleads Guilty to Securities FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), announced today that BRIAN ROBERSON, 42, of Fort Myers, Florida, pled guilty today to securities fraud before U.S. District Judge Cathy Seibel.
According to the allegations contained in the Indictment and other court documents:
Starting in late 2010, ROBERSON, an investor (the “Investor”), and another partner (the “Partner”) met in New York, New York, and agreed to jointly develop and implement a high-frequency trading algorithm. Among other things, ROBERSON falsely represented to the Investor and Partner that he was able to secure favorable terms at a securities clearing firm (the “Clearing Firm”) because he and his company, Savant Capital Management LLC (“Savant”), already held significant funds in an account there. ROBERSON suggested that the Investor wire funds to Savant, which would be placed into an account at the Clearing Firm and could thereafter be used for trading based on the algorithm.
In January 2011, at the direction of ROBERSON, and in reliance upon ROBERSON’s representations, the Investor wired more than $250,000 to an account controlled by ROBERSON. Unbeknownst to the Investor, ROBERSON transferred only approximately $233,000 of the Investor’s funds to the Clearing Firm. The remaining funds were withdrawn in cash or transferred to other bank accounts controlled by ROBERSON and misappropriated for his personal benefit.
By April 2011, ROBERSON ceased making payments to the vendor responsible for development of the trading algorithm, and the Investor contacted ROBERSON and requested the return of his remaining investment funds, which the Investor understood, based on ROBERSON’s previous representations, were intact. ROBERSON returned a portion of the Investor’s funds, totaling approximately $50,000. Unbeknownst to the Investor, however, ROBERSON misappropriated the remainder of the Investor’s funds to cover trading losses and fees in ROBERSON’s accounts at the Clearing Firm, and by transferring a portion of the Investor’s funds to bank accounts belonging to ROBERSON and his family members up through and including in October 2011, when ROBERSON’s account at the Clearing Firm was closed. ROBERSON ultimately used the Investor’s funds for his and his family’s personal benefit, including the purchase of expensive jewelry.
ROBERSON pled guilty to one count of securities fraud, which carries a maximum sentence of 25 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.
ROBERSON is scheduled to be sentenced by Judge Seibel on August 26, 2019, at 10:00 a.m.
Mr. Berman praised the investigative work of the FBI.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys James McMahon and Jeffrey Coffman are in charge of the prosecution.
Fifth Farmer Pleads Guilty in Connection with Organic Fraud Scheme Totaling Nearly $140 Million in Fraudulent SalesRead the Press Release
A Missouri man who conspired with others to sell grain fraudulently marketed as organic pled guilty today in federal court in Cedar Rapids.
John Burton, age 52, from Clarksdale, Missouri, was convicted of one count of conspiracy to commit wire fraud. As part of the conspiracy, he admitted that grain grown on non-organic fields was marketed and sold as organic and that unapproved substances were used on fields certified as organic.
Burton’s plea is related to Randy Constant’s plea from December 20, 2018, when Constant, age 61, from Chillicothe, Missouri, pled guilty to an organic grain fraud scheme involving at least $142 million in grain sales with the vast majority of those sales being fraudulent. Constant made many of those sales through a brokerage that he owned and operated out of Ossian, Iowa, known as Jericho Solutions. In other related matters three farmers from Nebraska previously pled guilty to fraud involving the sale of grain fraudulently marketed as organic – Tom Brennan, age 70; James Brennan, age 40; and Mike Potter, age 41 – all from Overton, Nebraska.
Sentencing for Randy Constant, Tom Brennan, James Brennan, and Mike Potter is scheduled for August 16, 2019, before United States District Court Judge C.J. Williams, at the United States Courthouse in Cedar Rapids. Burton’s sentencing will be set after a presentence report is prepared. Burton remains free on bond previously set. Burton faces a possible maximum sentence of 5 years’ imprisonment, a fine of at least $250,000, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Jake Schunk and Anthony Morfitt and investigated by the United States Department of Agriculture – Office of Inspector General and the Federal Bureau of Investigation.
Court file information is at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 19-CR-2025 (Burton), 18-CR-2034 (Constant), 18-CR-2058 (T. Brennan), 18-CR-2059 (J. Brennan), and 18-CR-2060 (Potter).
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Felon Pleads Guilty to Possessing Firearms and Witness TamperingRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today to felon in possession of five firearms and witness tampering.
“Prohibited persons who possess firearms are a significant danger to the safety of our communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Deaton, who is prohibited from possessing firearms as a previously convicted felon, conspired with his girlfriend to illegally straw purchase and traffick firearms for profit. Straw purchasing firearms literally arms criminals, and puts law enforcement and the law-abiding public in danger. My thanks to the brave women and men of the ATF for their assistance in investigating and prosecuting this case.”
According to information before the court, Christopher Allen Deaton, 21, a previously convicted felon, was part of a straw-purchasing and gun-trafficking scheme in which he had his girlfriend purchase five handguns for him, so he could resell them at a profit to out-of-state buyers. He drove with his girlfriend to the gun store, told her which guns and ammo to buy, and directed her to commit multiple felonies by lying about being the actual buyer of the guns on a federal form regulating gun transactions. He then took possession of the handguns.
While in jail on unrelated crimes, Deaton used the jail phone to convince his girlfriend not to cooperate with federal agents or testify in the proceedings against him. He started witness-tampering hours after ATF agents met him at a jail visit to discuss his knowledge about the criminal scheme.
Deaton pleaded guilty to being a felon in possession of firearms and witness tampering. He faces a maximum penalty of 10 years in prison when sentenced on September 3. 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 Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea. Assistant U.S. Attorney William B. Jackson 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. 2:19-cr-37.
Federal Court Permanently Enjoins South Florida Tax Return PreparersRead the Press Release
The United States District Court for the Southern District of Florida entered a permanent injunction against Katiusca “Kathy” Rigaud (aka Kathy Leger), Andy Jean, and Bar Professional Services LLC (Tax Kings & Queens), barring them from preparing federal income tax returns for others, the Justice Department announced today.
The complaint alleges that Kathy Rigaud, Andy Jean, and Tax Kings & Queens — along with another defendant who was not subject to today’s order — prepared nearly 3,000 tax returns between 2013 and 2018, with the vast majority claiming a refund. According to the complaint, the defendants did not consistently identify themselves as the preparer on returns they prepared, as required by law. The complaint further alleges that the defendants’ practices included submitting false Schedules C (Profit or Loss from Business) for fictitious businesses to secure bogus earned income tax credits for their customers; and claiming false employee business expense deductions on Schedules A.
Rigaud, Jean, and Tax King & Queens consented to the permanent ban. The fourth defendant, Janet Morales, has not responded to the complaint.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Entertainer/Businessman and Malaysian Financier Indicted for Conspiring to Make and Conceal Foreign and Conduit Contributions During 2012 U.S. Presidential ElectionRead the Press Release
A United States entertainer and businessman and a Malaysian financier were charged in a four-count indictment unsealed today in the District of Columbia for conspiring to make and conceal foreign and conduit campaign contributions during the United States presidential election in 2012, announced Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division.
Prakazrel “Pras” Michel, 46, and Low Taek Jho, 37, also known as “Jho Low,” were charged with one count of conspiracy to defraud the United States government and for making foreign and conduit campaign contributions. Michel also was charged with one count of a scheme to conceal material facts and two counts of making a false entry in a record in connection with the conspiracy. Michel appeared today for his arraignment before U.S. Magistrate Judge G. Michael Harvey in the District of Columbia. Low remains at large.
According to the indictment, between June 2012 and November 2012, Low directed the transfer of approximately $21,600,000 from foreign entities and accounts to Michel for the purpose of funneling significant sums of money into the United States presidential election as purportedly legitimate contributions, all while concealing the true source of the money. To facilitate the excessive contributions and conceal their true source, Michel paid approximately $865,000 of the money received from Low to about 20 straw donors, or conduits, so that the straw donors could make donations in their names to a presidential joint fundraising committee. In addition, Michel personally directed more than $1 million of the money received from Low to an independent expenditure committee also involved in the presidential election in 2012.
The indictment also alleges that by funneling campaign contributions through straw donors, Michel caused a presidential joint fundraising committee to submit false reports to the Federal Election Commission (FEC), including a false amended report in June 2013. The committee’s reports were false because they identified the straw donors, rather than Low or Michel, as the true source of the contributions. In addition, the indictment alleges that by contributing more than $1 million of the money he received from Low to an independent expenditure committee, Michel also caused that committee to submit false reports to the FEC, insofar as those reports identified Michel as the source of the contributions when, in fact, it was Low. The indictment further alleges that in June 2015, Michel submitted a false declaration to the FEC in which he claimed that he had no reason to conceal the true source of his contributions to the independent expenditure committee in 2012, even though Michel knew that the true source of that money was Low and that Michel had funneled the foreign money into the election.
Low was indicted previously, along with former banker Ng Chong Hwa, also known as “Roger Ng,” in the Eastern District of New York for conspiring to launder billions of dollars and to violate the Foreign Corrupt Practices Act. That case remains pending.
An indictment is merely a charge and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s International Corruption Squad in New York is investigating the case. Trial Attorneys Sean F. Mulryne and Nicole Lockhart of the Criminal Division’s Public Integrity Section are prosecuting the case.
Dominican National Sentenced for Social Security FraudRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for Social Security fraud.
Wilkin Alexander Marte Baez, 40, was sentenced by U.S. District Court Judge Richard G. Stearns to time-served, approximately five months in prison, and was transferred to the custody of immigration officials for deportation proceedings. In March 2019, he pleaded guilty to one count of false representation of a Social Security number. He was initially charged by indictment as a John Doe in federal court in Michigan, along with several others involved in a conspiracy to assist Dominican nationals with obtaining driver’s licenses using the identities of others. On Dec. 4, 2018, Marte Baez was arrested in Massachusetts; his case was transferred to federal court in Boston for plea and sentencing in February 2019.
On May 4, 2017, Marte Baez applied for a Michigan driver’s license using the name, Social Security number, and date of birth of a United States citizen from Puerto Rico. He supported his application with a counterfeit Puerto Rican birth certificate, a counterfeit Puerto Rican driver’s license, and a Social Security card in the United States citizen’s name. Based on the application and supporting identity documents, Marte Baez was issued a Michigan driver’s license in the United States citizen’s name.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Elianna Nuzum of Lelling’s Major Crimes Unit prosecuted the case in Boston after its transfer from the United States Attorney’s Office in the Western District of Michigan.
Department of Justice Opposes Unfair Attorney Fee Arrangement in Class Action Settlement Involving Dial SoapRead the Press Release
The Department of Justice filed a Statement of Interest today arguing that a proposed class action settlement involving hand soap would afford little value to consumers while handsomely compensating attorneys.
Plaintiffs in the case, In re: Dial Complete Marketing & Sales Practices Litig., alleged that The Dial Corp. falsely advertised its “Dial Complete” hand soaps containing triclosan as more effective at killing germs over other brands’ soap. Under a proposed settlement reached between the parties, Dial would pay $2.32 million to class members, with most class members receiving up to $8.10 in compensation for previous purchases of certain soap products. The settlement also provides for injunctive relief that would require Dial to refrain from using triclosan or claiming that its hand wash product “Kills 99% of Germs.”
Under the agreement, class counsel would seek a total of $3.825 million in attorney’s fees without opposition from Dial, including $1.9 million in fees specifically tied to obtaining the injunctive relief. In its Statement of Interest, the United States argues that the injunction would provide no benefit to consumers, given that Dial years ago voluntarily made the same changes to its soap products that are required by the proposed injunctive relief. Moreover, the U.S. Food and Drug Administration banned the use of triclosan in such products in 2016. The case is pending in U.S. District Court for the District of New Hampshire, which must approve any settlement.
“A class action settlement that affords little meaningful consumer benefit while rewarding attorneys with sizable fees is inappropriate,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Congress intended to prevent these types of unbalanced settlements with the Class Action Fairness Act.”
The Class Action Fairness Act of 2005 provides the Attorney General and state officials an opportunity to review federal class action settlements before district courts grant final approval. The United States recently filed a Statement of Interest in another class action case in the Northern District of Illinois, Cowen et al. v. Lenny & Larry’s. The government argued that the Cowen settlement directed most of the settlement’s value to attorney’s fees and non-class members rather than the consumer plaintiffs. The United States also filed an amicus brief in the Sixth Circuit Court of Appeals earlier this year arguing that a class action settlement involving pressure cookers did not provide sufficient relief to consumers.
Trial Attorney Kendrack Lewis of the Civil Division’s Consumer Protection Branch represents the United States in the matter. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.
Defendant Sentenced to 9 Years’ Imprisonment for Participation in Cocaine and Crack ConspiracyRead the Press Release
PITTSBURGH – A former resident of McKees Rocks, PA, was sentenced in federal court this week for violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge David Stewart Cercone sentenced Jamar Everett, 37, to serve nine years (108 months) in prison following his guilty plea on December 19, 2018, to one count of conspiracy.
In connection with his guilty plea, Everett admitted that from in and around April 2016, and continuing thereafter to in and around October 2016, he conspired to distribute and possess with intent to distribute cocaine, a Schedule II controlled substance. At the time of his guilty plea, Everett admitted that he was responsible for between 500 grams and two kilograms of powder cocaine during the conspiracy.
Everett was charged as part of a nine-defendant indictment returned by a federal grand jury on August 1, 2017. To date, all defendants have pleaded guilty for their roles, and six have been sentenced.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the Indictment in this case. The task force is headed by the Drug Enforcement Administration and comprises 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.
Dallas County Man Sentenced to 100 Months for Possession of a Firearm After Conviction of a FelonyRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Anthony Ellis, a 34 year old resident of Selma, Alabama was sentenced to 100 months of incarceration for possession of a .38 caliber Rohm pistol after being convicted of a felony.
On January 28, 2019, Ellis was found guilty after a jury trial in Selma, Alabama being a felon in possession of a firearm. The evidence adduced at trial showed that on December 16, 2017, Selma police officers were on special patrol in an area of the city where violent crimes frequently occurred. They approached the intersection of The Small Street Inn and L.L. Anderson Avenue. They observed Anthony Jerome Ellis and a relative standing in front of a silver Ford Taurus parked at that location. When they observed the officers approach them, they moved to the passenger side of the vehicle and both bent down as if they were hiding something or placing something under the vehicle. Anthony Ellis was in the area of the back passenger door and his relative was at the back passenger quarter panel or behind the back tire.
The Officers approached with firearms drawn and instructed them to show their hands. Anthony Ellis moved to the front of the vehicle and his relative moved to the back. Both Ellis and his relative were detained for further investigation. Both were patted down for officer safety. The officers looked under the car. They discovered a loaded RG .38 caliber revolver containing three live rounds by the back passenger door in front of the tire, where Anthony Ellis was observed stooping behind the vehicle as the officers approached. That gun is more specifically described as a Rohm .38 caliber revolver. Where his relative stooped behind the vehicle, Officers found a Smith &Wesson .40 caliber pistol. Both guns were collected as evidence and Ellis and his relative were transported to the police department for questioning after advice of rights. A background investigation of Ellis showed that he had been convicted of a felony and was prohibited from possessing a firearm. He was charged accordingly. His relative was not a felon and was not charged with a federal crime.
While Ellis awaited trial, he was housed in the Monroe County, Alabama jail. While there, he sought the help and advice of an inmate who had been convicted of being a felon in possession of a firearm. Ellis told this inmate the facts of his case and asked the inmate what he thought of Ellis’ chances of “beating” the case. Ellis also told the inmate that “the cops didn’t actually see” [him] toss the gun under the car.” Ellis further stated that he was going to “tell the cops [he] bent down to pick up a lighter or to tie his shoe.” Ellis bragged that he was going to have his trial in Selma, “because everybody up there knows [him] and they won’t convict [him] in Selma.”
While only one felony conviction was made know to the jury during trial, Ellis had five felony convictions at the time he possessed the .38 caliber Rohm pistol. They include, Assault First Degree, on November 13, 2008, in the Circuit Court of Dallas County, Alabama; Escape Second Degree, on July 30, 2007, in the Circuit Court of Dallas County, Alabama; Certain Persons Forbidden to Carry a Firearm, on June 6, 2017, in the Dallas County, Alabama, District Court; Assault Second Degree, on October 29, 2014, in the Dallas County, Alabama, Circuit Court; and Shooting into an Occupied Vehicle, on June 9, 2011, in the Dallas County, Alabama, Circuit Court.
Officers of the Selma, Alabama Police Department along with special agents of the ATF investigated the case and brought it to the U. S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.Connecticut Resident Charged with Making Numerous Hoax ThreatsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven returned a 16-count indictment yesterday charging GARY JOSEPH GRAVELLE, also known as Roland Prejean, 51, last residing in New Haven, with threatening to kill, injure and intimidate people and explode property in Connecticut and elsewhere.
As alleged in the indictment, in September 2018, Gravelle used the U.S. mail, e-mail and telephone to threaten to harm people and explode property in Connecticut, Vermont and Washington. Certain letters that Gravelle mailed contained a white powdery substance and statements that the substance was Anthrax, a biological agent and toxin. Gravelle made threats to various mental health providers and facilities in New Haven, U.S. Probation Officers, a U.S. District Court Judge, an international airport in Vermont, a federal prison in Washington, occupants of a building in Old Saybrook, a credit union in Bristol, and organizations and religious centers in Connecticut. He also sent a letter threatening to kill the President of the United States.
Gravelle was arrested on September 8, 2018, for violating the terms of his federal supervised release. He was under federal supervision when he allegedly committed the offenses charged in the indictment, having been convicted and sentenced in 2013 for offenses stemming from his sending threatening communications. He has been detained since his arrest.
The indictment charges Gravelle with 12 counts of maliciously conveying false information about an explosive, an offense that carries a maximum term of imprisonment of 10 years on each count; three counts related to the sending of hoax Anthrax letters, and offense that carries a maximum term of imprisonment of five years on each count, and one count of making threats against the President, an offense that carries a maximum term of imprisonment of five years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, U.S. Marshals Service, U.S. Secret Service, and U.S. Postal Inspection Service. The U.S. Attorney extends his appreciation to the U.S. Bureau of Prisons, Connecticut State Police, Connecticut Department of Energy and Environmental Protection, and many local police and fire departments for their assistance in this matter that directly affected various communities, including departments from Bristol, Guilford, Groton, Hartford, Middletown, New Haven, Old Saybrook and Southington, Yale University, and Burlington, Vermont. This case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Colorado Woman Sentenced to 27 Months in Prison on Federal Wire Fraud Charge, Admits Embezzling Money from Non-ProfitRead the Press Release
WASHINGTON – Ashley Furst, 35, of Highlands Ranch, Colorado, was sentenced today to 27 months in prison for her role in an embezzlement scheme in which she stole over $545,000 from a non-profit organization in the District of Columbia.
The announcement was made by U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
Furst pled guilty in January 2019, to one count of wire fraud charge in the U.S. District Court for the District of Columbia. She was sentenced by the Honorable Dabney L. Friedrich. In addition to her prison term, Furst must pay restitution in the amount of $244,994.87, as well as a forfeiture money judgement in the same amount. Following her prison term, she will be placed on three years of supervised release, during which she must complete 100 hours of community service.
Furst was hired in 2011 as the office administrator for the American Horse Council; a Washington, D.C. based non-profit trade association. She was later promoted to the position of Director of Communications. While employed by the non-profit, Furst’s responsibilities included public outreach, membership recruitment, and communications. She also handled duties typically performed by an office administrator, such as maintaining accounting records, reconciling the monthly bank account statements, transferring on-line donations from the PayPal account to their bank account, providing copies of the bank statements to the members of the Board of Directors, and serving as the sole point of contact for the outside auditors.
Starting in 2012 and continuing through June 2018, Furst stole money from the non-profit in a variety of ways. First, she paid her own personal credit card bills from her employer’s bank account, primarily through on-line debits from the bank account to satisfy her credit card balance, for approximately $415,202.52. Second, she wrote herself unauthorized checks drawn on her employer’s bank account, typically listing on the memo line a bogus reason for the check, for approximately $83,656.40. Third, she repaid her personal loan from her employer’s funds, for approximately $56,411.43. Fourth, although Furst was responsible for transferring donations from her employer’s PayPal account, she misdirected approximately $60,949.49 to her own account or to pay for personal items. Fifth, Furst increased her salary without authorization, by approximately $29,875.03. Through these five methods, Furst embezzled approximately $646,094. However, before the victim discovered the crime, Furst returned $100,500 to her employer, leaving a total embezzlement of $545,594.
In announcing the sentence, U.S. Attorney Liu and Assistant Director in Charge McNamara commended the work performed by those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Amanda Rohde and Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.
Colombian Narcotics Kingpin Pleads Guilty for Bribing Former Federal Agent to Dismiss IndictmentRead the Press Release
A Colombian Cali Cartel cocaine trafficker pleaded guilty today for bribing a former Homeland Security Investigations Special Agent to secure the dismissal of a drug trafficking indictment filed against him, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Jose Bayron Piedrahita-Ceballos, 60, of Medellin, Colombia, was extradited from the Republic of Colombia on April 5, 2019, and will be sentenced on July 19, 2019, before U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida.
According to admissions in the plea agreement, Piedrahita-Ceballosoffered and gave things of value to Christopher Ciccione II, 54, a former federal law enforcement agent, in exchange for Ciccione using his official position to cause a drug trafficking indictment against Piedrahita-Ceballos to be dismissed and to obtain official authorization for Piedrahita-Ceballos to enter the United States. At the time of the dismissal, Ciccione was the case agent for Operation Cornerstone, a large-scale Organized Crime Drug Enforcement Task Force case that resulted in indictments of over 100 Colombia-based cocaine traffickers from the Cali Cartel. Piedrahita-Ceballos, an Operation Cornerstone defendant, and Colombian national Juan Carlos Velasco, 51, gave Ciccione approximately $20,000 in cash, dinner, drinks and prostitution during an extended hotel stay in Bogota, Colombia, in exchange for official acts that resulted in the dismissal of the indictment against Piedrahita-Ceballos. Velasco served as the intermediary between Ciccione and Piedrahita-Ceballos. Velasco and Ciccione have previously pleaded guilty for their conduct in this matter. On Feb. 9, 2018, Ciccione was sentenced to 36 months in prison. On Jan. 19, 2018, Velasco was sentenced to 27 months in prison.
In furtherance of this scheme to obstruct justice, Ciccione misled the U.S. Attorney’s Office, HSI management and altered TECS records to represent to decision makers that Piedrahita-Ceballos was “unidentified” and that his case should be dismissed because “all investigative efforts” were “exhausted” all while maintaining contact with Piedrahita-Ceballos. Ciccone also falsified the concurrence of several other federal agents and attempted to parole Piedrahita-Ceballos into the United States through the United States Department of State.
The U.S. Department of the Treasury’s Office of Foreign Assets Control designated Piedrahita as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act on May 3, 2016.
U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility, Department of Homeland Security’s Office of Inspector General and the FBI investigated the case. The Criminal Division’s Office of International Affairs, the Office of the Judicial Attaché in Colombia and the Drug Enforcement Administration provided valuable assistance to the investigation. The Colombian Attorney General’s Office also provided invaluable support. Trial Attorney Jennifer A. Clarke of the Criminal Division’s Public Integrity Section is prosecuting the case.
Clarence Center Man Indicted on Multiple Drug and Gun ChargesRead 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 a federal grand jury has returned an indictment charging Anthony Gerace, 39, of Clarence, NY, with possession with intent to distribute marijuana, maintaining a drug-involved premises, and possession of firearms in furtherance of drug trafficking. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life, and a $500,000 fine.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that according to the indictment and a previously filed complaint, on January 28, 2019, HSI special agents executed a search warrant at the defendant’s current residence at 9070 Michael Douglas Drive, Clarence Center, NY. Agents recovered multiple pounds of marijuana and other suspected marijuana products including gummy edibles and multiple pens of THC oil cartridges used for vaping; five handguns; nine rifles; hundreds of rounds of ammunition in various calibers; three cell phones; $103,360 in cash; and evidence of sports gambling.
The indictment seeks forfeiture of the defendant’s Douglas Drive residence, and the $103,360 in cash, firearms, and ammunition seized from the residence.
The defendant was arraigned today before U.S. District Judge Lawrence J. Vilardo and released on conditions.
The indictment is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the Amherst Police Department, under the direction of Chief John Askey; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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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