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Tuesday 2 April 2019
Weare Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONCORD - Karl Messner, 63, of Weare, pleaded guilty in federal court on Monday to possession of child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, starting in June 2016, the National Center for Missing and Exploited Children received a number of CyberTipline Reports regarding suspected child pornography activity. The internet protocol, or IP, addresses associated with those reports all resolved to Messner’s residence in Weare, New Hampshire. In October 2016, investigators obtained a federal search warrant for that residence. During an interview at his house, Messner admitted to viewing child pornography, and that images could be found on his laptop and thumb drives. Investigators seized a laptop and thumb drive on which they later found images of child pornography following a forensic analysis.
Messner is scheduled to be sentenced on July 16, 2019.
“The protection of children is one of the most important duties of law enforcement,” said U.S. Attorney Murray. “Child exploitation crimes, including those related to child pornography, are very serious matters. In order to protect the innocence of children, we will continue to work closely with our law enforcement partners to identify and prosecute those who commit these crimes.”
This matter was investigated by Immigration and Custom Enforcement’s Homeland Security Investigations, with assistance from the Internet Crimes Against Children Task Force and the Weare Police Department. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Waterbury Man Pleads Guilty to Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that CHRISTOPHER SAUNDERS, 37, of Waterbury, pleaded guilty yesterday before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of possession of a firearm by a convicted felon.
According to court documents and statements made in court, on October 25, 2018, Waterbury Police arrested Saunders on Buckingham Street after he was found in possession of a loaded Glock, Model 21, .45 caliber pistol. Saunders also possessed several rounds of .223 caliber rifle ammunition in his pocket.
The pistol had been reported stolen in Vermont in April 2017.
In 2013, Saunders was convicted in Florida of felony burglary and theft offenses.
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.
Judge Underhill scheduled sentencing for June 25, 2019, at which time Saunders faces a maximum term of imprisonment of 10 years.
Saunders has been detained since his arrest.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Wagner Man Sentenced for Obtaining Controlled Substances by FraudRead the Press Release
United States Attorney Ron Parsons announced that a Wagner, South Dakota, man convicted of Obtaining Controlled Substances by Fraud was sentenced on April 1, 2019, by U.S. District Judge Karen E. Schreier.
Robert Fox, Jr., age 36, was sentenced to 5 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Fox was indicted by a federal grand jury on June 6, 2018. He pled guilty on January 3, 2019.
The conviction stemmed from incidents between January 20, 2016, and February 1, 2016, when Fox, who had previously been convicted of a felony, knowingly and intentionally obtained hydrocodone, a Schedule II controlled substance. Fox, complaining of back pain stemming from an injury in 2005, was prescribed a 20-day supply of Hydrocodone-Acetaminophen (80 tablets). Fox subsequently lied and made misrepresentations to multiple medical providers at various medical facilities in an effort to obtain additional hydrocodone tablets.
This case was investigated by the U.S. Department of Health and Human Services. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Fox was immediately turned over to the custody of the U.S. Marshals Service.
Unlawful Firearm Possessor Sentenced to 40 MonthsRead the Press Release
BOISE – Pedro Colis, 24, of Hailey, Idaho, was sentenced today in U.S. District Court to 40 months in prison, followed by 3 years’ supervised release, for unlawful possession of a firearm, U.S. Attorney Bart M. Davis announced. Colis was sentenced by U.S. District Court Judge Edward J. Lodge.
According to court records, on April 14, 2018, Colis was driving his vehicle in Lincoln County. Colis had two handguns placed on the passenger seat. While driving, Colis attempted to move the two handguns from the front seat to the rear seat floorboard with one hand. As Colis attempted to move the firearms, one went off. A bullet struck Colis in his upper leg. He was treated at a local hospital, where he was interviewed by law enforcement. Colis admitted to possessing the two handguns. A records check confirmed that Colis was previously convicted of possession of a controlled substance with the intent to deliver in 2013. Due to this conviction, Colis was a prohibited possessor of firearms at the time he shot himself.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the City of Shoshone Police Department.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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U.S. Attorney’s Office Settles Disability Discrimination Allegations Related to the CPA ExamRead the Press Release
BOSTON – The U.S. Attorney’s Office has reached an agreement with the American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA) related to testing accommodations for individuals who are blind or have low vision who take the Uniform Certified Public Accountant Exam (the CPA exam). This agreement resolves allegations of discrimination on the basis of disability under Title III of the Americans with Disabilities Act (ADA).
“People who have vision-related disabilities deserve equal opportunities to take the CPA exam and gain licensure to the profession,” said United States Attorney Andrew E. Lelling. “We are pleased that AICPA and NASBA worked cooperatively to adopt measures that will ensure these individuals receive appropriate auxiliary aids so that their CPA exam results accurately reflect their aptitude rather than reflecting their impaired visual skills.”
In order to become a licensed CPA, one must pass the CPA exam, which consists of four separate sections, available only on a computer. When the United States began its investigation in August 2017, there was no auxiliary aid software available to exam-takers with low vision that would allow them to both magnify the computer screen and have the computer read aloud sections of the text. Instead, those exam-takers had to use alternative auxiliary aids, and sometimes a human reader, for some portions of the exam, rather than the screen reader/magnifier they requested that was recommended by their qualified professional health care provider as appropriate for their disability. AICPA now makes screen reader/magnifier software available to exam-takers with low vision for all four sections of the exam and has made the text of the Authoritative Literature (resource materials for use during the exam) accessible through a screen reader. Under the terms of the settlement agreement, AICPA is continuing to work with advocacy organizations and auxiliary aid software developers to ensure ongoing accessibility of the exam to individuals with vision-related disabilities.
Additionally, the AICPA will pay $15,000 to an individual who was a subject of the alleged discrimination. The United States will also identify other aggrieved persons who are blind or have low vision and recently took the CPA exam with an inappropriate auxiliary aid. Each additional aggrieved person shall receive up to $10,000 from AICPA, based on the details and extent of discrimination they suffered. Individuals who believe they are aggrieved persons under the terms of the agreement should contact the U.S. Attorney’s Office at (617) 275-8756.
United States Attorney Andrew E. Lelling made the announcement today. Assistant U.S. Attorney Torey B. Cummings of Lelling’s Civil Rights Unit handled the case.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Two Sentenced on Federal Drug ChargesRead the Press Release
BLUEFIELD, W.Va.—United States Attorney Mike Stuart announced today that two men were sentenced on drug charges in federal court in Bluefield.
“A drug dealer is a drug dealer,” said United States Attorney Mike Stuart. “Regardless of whether they are selling opioids or cocaine, we’ll do everything we can to protect West Virginia families and put drug dealers behind bars.”
Benjamin Allen III, 31, of Princeton, was sentenced to 188 months in prison for distributing hydromorphone. Allen pled guilty in December, admitting that on January 10, 2017, he distributed a quantity of hydromorphone to an informant in Princeton. He also admitted that he distributed hydromorphone on two other occasions in Princeton in January of 2017 and once in Bluefield in March of 2017, and that on March 28, 2017, he possessed hydrocodone and hydromorphone pills in Princeton with the intent to distribute them. The case was investigated by the Southern Regional Drug and Violent Crime Task Force, the Bluefield Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
James Kelsor, 46, of Northfork, was sentenced to 16 months in prison for distributing cocaine. Kelsor also pled guilty in December, when he admitted that on September 30, 2016, he distributed a quantity of cocaine to an informant in Bluefield. He also admitted that he distributed cocaine to an informant in Bluefield on October 3 and October 5, 2016. The Southern Regional Drug and Violent Crime Task Force investigated the case.
Assistant United States Attorney John File handled the prosecution of the cases. Senior United States District Judge David A. Faber imposed the sentences.
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Two Men Plead Guilty to Heroin Distribution ConspiracyRead the Press Release
ALEXANDRIA, Va. – A West Virginia man and an Alexandria man pleaded guilty today to conspiracy to distribute heroin in and around Northern Virginia.
According to court documents, Rodney Malcolm Livengood, 57, of Martinsburg, and Nicholas George March, 28, of Alexandria, conspired to obtain heroin from sources of supply in Baltimore and bring it back to Sterling for distribution to users. After the narcotics were packaged for individual sale, Livengood and March delivered the heroin to users in Loudoun and Fairfax counties.
Livengood and March each pleaded guilty to conspiracy to distribute 100 grams or more of heroin and distribution of a controlled drug and face a mandatory minimum of five years in prison and a maximum penalty of 60 years in prison when sentenced on June 28. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Michael L. Chapman, Loudoun County Sheriff, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Special Assistant U.S. Attorney Marc J. Birnbaum 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 is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-96.
Two Brothers Sentenced for Operating A Marijuana RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Alexander Green, 33, of San Francisco, CA, and his brother Charles Green, 30, of Long Island City, NY, who were convicted of conspiracy to possess with intent to distribute, and to distribute, 50 kilograms or more of marijuana and conspiracy to commit money laundering, were sentenced to serve 48 months and 27 months respectively in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Sean C. Eldridge, who handled the case, stated that between January 2010 and March 2014, Alexander Green obtained significant quantities of marijuana from the State of California and was shipping allotments to his brother Charles Green in New York City. Once the marijuana arrived on the East Coast, marijuana was subsequently transported upstate for distribution to customers in the Rochester area. The marijuana was transported either by Charles Green or by several individuals working on his behalf. Both defendants admitted that at least 100 kilograms of marijuana was involved in their drug trafficking enterprise. Charles and Alexander Green set the pricing of the marijuana. Once the marijuana was received in Rochester, it was then distributed to various customers located in the Rochester area.
As part of the investigation, law enforcement officers seized $221,344 from Alexander Green. Specifically, $1,100 in cash was seized from Alexander Green in March 2011 in Jackson County, Oregon, along with five pounds of marijuana from the car he was driving; $99,914 in cash was seized from a car in which Alexander Green was a passenger in November 2013 in Ukiah, California; and $120,330 in cash was seized from Alexander Green at the San Francisco Airport in January 2014. Those sums of currency, totaling $221,344, were forfeited as marijuana trafficking proceeds, as was $50,000 surrendered by Alexander Green and $50,000 surrendered by $50,000 by Charles Green prior to their sentencings. In total, $321,344 in drug proceeds was forfeited by the defendants.
The sentencings are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Three L.A. Residents Charged in Darknet Drug Ring that Allegedly Shipped Methamphetamine to Buyers Around the WorldRead the Press Release
LOS ANGELES – Three people accused of being part of an international drug trafficking ring are in custody on federal charges alleging they used the Darknet to obtain drugs and offer narcotics for sale, and then shipped pound quantities of methamphetamine to buyers in the Philippines, New Zealand, Poland and other foreign destinations.
An eight-count indictment returned on March 22 by a federal grand jury charges the three defendants with conspiracy to distribute methamphetamine and substantive drug trafficking offenses. The defendants are:
- Michael Alan Goldberg, 34, of Panorama City, who allegedly directed the conspiracy, even after being taken into federal custody in June 2018;
- Donnica Rabulan, 31, of Panorama City; who is Goldberg’s wife, and
- James Caleb Kueker, 41, of the Hollywood Hills.
Rabulan, who in addition to the conspiracy charge faces four counts of distributing methamphetamine, was arraigned Monday afternoon in United States District Court. Kueker, who also is charged with one count of possession with the intent to distribute ketamine, as well as with one count of possession of a firearm in furtherance of a drug trafficking crime, was also arraigned on Monday. Rabulan and Kueker each entered not guilty pleas and were ordered to stand trial on June 4.
Goldberg, who also faces one count of intentionally distributing methamphetamine, is scheduled to be arraigned on April 8.
The eight-count indictment followed a criminal complaint filed on March 1 that outlined how the three defendants used the Darknet to purchase narcotics with cryptocurrency such as Bitcoin, and then made 59 shipments of methamphetamine and other illegal drugs to international buyers. During the course of the alleged conspiracy, Goldberg was arrested on an unrelated fraud case and was sentenced to 42 months in federal prison on that matter.
In May 2018, one shipping company security manager in Van Nuys contacted federal law enforcement about seven parcels destined for the Philippines that were suspected of containing controlled substances, according to the affidavit in support of the complaint. The seven packages cumulatively contained nearly 21 kilograms of methamphetamine, and had contact information with telephone numbers linked to Goldberg, the affidavit states.
The indictment alleges that Rabulan shipped methamphetamine to international buyers, while Kueker collected tens of thousands of dollars in illicit proceeds from the sales on Goldberg’s behalf.
Search warrants executed on March 11 led to the discovery of suspected drug labs at Kueker’s homes in the Hollywood Hills and Valley Village, as well as a loaded AK-47-style rifle in the bedroom of Kueker’s Hollywood Hills residence, court papers state. Federal agents also recovered more than $150,000 in suspected drug proceeds in a safe deposit box registered to Kueker, according to court documents. Three residents of the house were arrested and were charged in separate indictments alleging possession with intent to distribute a controlled substance.
If convicted on all counts, each defendant faces a statutory maximum sentence of life in federal prison. The conspiracy count carries a mandatory minimum sentence of 10 years in prison. The count alleging firearm possession in furtherance of a drug trafficking crime carries a five-year mandatory minimum prison sentence.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Secret Service, the U.S. Postal Inspection Service, and U.S. Customs and Border Protection.
This case is being prosecuted by Assistant United States Attorneys Roger Hsieh and Ian Yanniello of the General Crimes Section and Special Assistant United States Attorney Ryan Waters of the Asset Forfeiture Section.
The Founder and Chairman of a Multinational Investment Company, a Company Consultant and Two North Carolina Political Figures are Charged with Public Corruption and BriberyRead the Press Release
A federal criminal indictment unsealed today in the Western District of North Carolina charges the founder and Chairman of a multinational investment company, a company consultant and two North Carolina political figures with public corruption and bribery, for their alleged participation in a bribery scheme involving independent expenditure accounts and improper campaign contributions.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew Murray for the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI Charlotte Field Office, made the announcement.
The indictment charges Greg E. Lindberg, 48, of Durham, North Carolina, and founder and Chairman of Eli Global LLC (Eli Global) and the owner of Global Bankers Insurance Group (GBIG); John D. Gray, 68, of Chapel Hill, North Carolina and a consultant for Lindberg; North Carolina state political party Chairman Robert Cannon Hayes, 73, of Concord, North Carolina; and Chairman of a Chatham County political party and an Eli Global executive John V. Palermo, 63, of Pittsboro, North Carolina, with conspiracy to commit honest services wire fraud, and bribery concerning programs receiving federal funds and aiding and abetting. Hayes is also charged with three counts of making false statements to the FBI.
The defendants made their initial appearances today before U.S. Magistrate Judge David C. Keesler in federal court in Charlotte.
“The indictment unsealed today outlines a brazen bribery scheme in which Greg Lindberg and his coconspirators allegedly offered hundreds of thousands of dollars in campaign contributions in exchange for official action that would benefit Lindberg’s business interests,” said Assistant Attorney General Benczkowski. “Bribery of public officials at any level of government undermines confidence in our political system. The Criminal Division will use all the tools at our disposal—including the assistance of law-abiding public officials—to relentlessly investigate and prosecute corruption wherever we find it.”
“Thanks to the voluntary reporting of the North Carolina Commissioner of Insurance, we have uncovered an alleged scheme to violate our federal public corruption laws,” said U.S. Attorney Murray. “Improper campaign contributions erode the public’s trust in our political institutions. We will work with our law enforcement partners to investigate allegations of public corruption, safeguard the integrity of the democratic process, and prosecute those who compromise it.”
“These men crossed the line from fundraising to felonies when they devised a plan to use their connections to a political party to attempt to influence the operations and policies of the North Carolina Department of Insurance,” said Special Agent in Charge Strong. “The FBI will root out any and all forms of public corruption. We remain committed to ensuring those who violate the public’s sacred trust are held accountable.”
The criminal indictment alleges that in January 2018, the elected Commissioner of Insurance (Commissioner) of the North Carolina Department of Insurance (NCDOI) reported concerns to federal law enforcement about political contributions and other requests made by Lindberg and Gray, and agreed to cooperate with the federal investigation that was initiated.
According to allegations in the indictment, from April 2017 to August 2018, Lindberg, Gray, Palermo and Hayes devised a scheme to defraud and deprive the citizens of North Carolina of the honest services of the Commissioner, an elected State official, through bribery. As alleged in the indictment, the defendants engaged in a bribery scheme involving independent expenditure accounts and improper campaign contributions, for the purpose of causing the Commissioner to take official action favorable to Lindberg’s company, GBIG. As the indictment alleges, the defendants gave, offered, and promised the Commissioner millions of dollars in campaign contributions and other things of value, in exchange for the removal of NCDOI’s Senior Deputy Commissioner, who was responsible for overseeing regulation and the periodic examination of GBIG.
During the time frame relevant to the indictment, Lindberg, Gray, Palermo and the Commissioner held numerous in-person meetings at different locations, including in Statesville, North Carolina, and had telephonic and other communications with each other, and with Hayes, to discuss Lindberg’s request for the personnel change in exchange for millions of dollars, and to devise a plan on how to funnel campaign contributions to the Commissioner anonymously. In order to conceal the bribery scheme, Palermo allegedly set up, at the direction of Lindberg, two corporate entities to form an independent expenditure committee with the purpose of supporting the Commissioner’s re-election campaign, and funded the entities with $1.5 million as promised to the Commissioner. Also, at Lindberg and Gray’s direction, Hayes allegedly caused the transfer of $250,000 from monies Lindberg had previously contributed to a North Carolina state party of which Hayes was Chairman, to the Commissioner’s re-election campaign.
On or about Aug. 28, 2018, FBI agents interviewed Hayes about his involvement with and knowledge of the alleged improper campaign contributions. During the interview, Hayes allegedly lied to FBI agents about directing funds, at Lindberg’s request, from Lindberg’s campaign contribution to the North Carolina state political party to the Commissioner’s re-election campaign; about having any discussions with the Commissioner about Lindberg or Gray; and about discussing with the Commissioner personnel issues related to the Commissioner’s office.
The details contained in this indictment are allegations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI is in charge of the investigation, which is ongoing.
Trial Attorney James C. Mann of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys William Stetzer and Dana Washington of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
The Founder and Chairman of A Multinational Investment Company, A Company Consultant, and Two North Carolina Political Figures Are Charged with Public Corruption and BriberyRead the Press Release
UPDATE
John V. Palermo, a defendant in this case, was acquitted of the charges alleged in the indictment as described in the press release below.
Charlotte, N.C. – A federal criminal indictment unsealed today in the Western District of North Carolina charges the founder and Chairman of a multinational investment company, a company consultant, and two North Carolina political figures with public corruption and bribery, for their alleged participation in a bribery scheme involving independent expenditure accounts and improper campaign contributions.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew Murray for the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI Charlotte Field Office, made the announcement.
The indictment charges Greg E. Lindberg, 48, of Durham, North Carolina, and founder and Chairman of Eli Global LLC (Eli Global) and the owner of Global Bankers Insurance Group (GBIG); John D. Gray, 68, of Chapel Hill, North Carolina and a consultant for Lindberg; North Carolina state political party Chairman Robert Cannon Hayes, 73, of Concord, North Carolina; and Chairman of a Chatham County political party and an Eli Global executive John V. Palermo, 63, of Pittsboro, North Carolina, with conspiracy to commit honest services wire fraud, and bribery concerning programs receiving federal funds and aiding and abetting. Hayes is also charged with three counts of making false statements to the FBI.
The defendants made their initial appearances today before U.S. Magistrate Judge David C. Keesler in federal court in Charlotte.
“The indictment unsealed today outlines a brazen bribery scheme in which Greg Lindberg and his coconspirators allegedly offered hundreds of thousands of dollars in campaign contributions in exchange for official action that would benefit Lindberg’s business interests,” said Assistant Attorney General Benczkowski. “Bribery of public officials at any level of government undermines confidence in our political system. The Criminal Division will use all the tools at our disposal—including the assistance of law-abiding public officials—to relentlessly investigate and prosecute corruption wherever we find it.”
“Thanks to the voluntary reporting of the North Carolina Commissioner of Insurance, we have uncovered an alleged scheme to violate our federal public corruption laws,” said U.S. Murray. “Improper campaign contributions erode the public’s trust in our political institutions. We will work with our law enforcement partners to investigate allegations of public corruption, safeguard the integrity of the democratic process, and prosecute those who compromise it.”
“These men crossed the line from fundraising to felonies when they devised a plan to use their connections to a political party to attempt to influence the operations and policies of the North Carolina Department of Insurance,” said Special Agent in Charge Strong. “The FBI will root out any and all forms of public corruption. We remain committed to ensuring those who violate the public’s sacred trust are held accountable.”
The criminal indictment alleges that in January 2018, the elected Commissioner of Insurance (Commissioner) of the North Carolina Department of Insurance (NCDOI) reported concerns to federal law enforcement about political contributions and other requests made by Lindberg and Gray, and agreed to cooperate with the federal investigation that was initiated.
According to allegations in the indictment, from April 2017 to August 2018, Lindberg, Gray, Palermo and Hayes devised a scheme to defraud and deprive the citizens of North Carolina of the honest services of the Commissioner, an elected State official, through bribery. As alleged in the indictment, the defendants engaged in a bribery scheme involving independent expenditure accounts and improper campaign contributions, for the purpose of causing the Commissioner to take official action favorable to Lindberg’s company, GBIG. As the indictment alleges, the defendants gave, offered, and promised the Commissioner millions of dollars in campaign contributions and other things of value, in exchange for the removal of NCDOI’s Senior Deputy Commissioner, who was responsible for overseeing regulation and the periodic examination of GBIG.
During the time frame relevant to the indictment, Lindberg, Gray, Palermo and the Commissioner held numerous in-person meetings at different locations, including in Statesville, North Carolina, and had telephonic and other communications with each other, and with Hayes, to discuss Lindberg’s request for the personnel change in exchange for millions of dollars, and to devise a plan on how to funnel campaign contributions to the Commissioner anonymously. In order to conceal the bribery scheme, Palermo allegedly set up, at the direction of Lindberg, two corporate entities to form an independent expenditure committee with the purpose of supporting the Commissioner’s re-election campaign, and funded the entities with $1.5 million as promised to the Commissioner. Also, at Lindberg and Gray’s direction, Hayes allegedly caused the transfer of $250,000 from monies Lindberg had previously contributed to a North Carolina state party of which Hayes was Chairman, to the Commissioner’s re-election campaign.
On or about Aug. 28, 2018, FBI agents interviewed Hayes about his involvement with and knowledge of the alleged improper campaign contributions. During the interview, Hayes allegedly lied to FBI agents about directing funds, at Lindberg’s request, from Lindberg’s campaign contribution to the North Carolina state political party to the Commissioner’s re-election campaign; about having any discussions with the Commissioner about Lindberg or Gray; and about discussing with the Commissioner personnel issues related to the Commissioner’s office.
The details contained in this indictment are allegations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI is in charge of the investigation, which is ongoing.
Trial Attorney James C. Mann of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys William Stetzer and Dana Washington of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
St. Croix Man Pleads Guilty to Possession of Marijuana at Federal Courthouse Facility on St. CroixRead the Press Release
St. Croix, USVI – On Thursday, March 28, 2019, Dion Alfred-Carlton Williams, 20, of St. Croix, Virgin Islands, pleaded guilty before U.S. Magistrate Judge George Cannon, Jr., to possession of marijuana, United States Gretchen Shappert announced. Sentencing is scheduled for July 31, 2019.
According to the plea agreement filed with the court, On March 10, 2017, the defendant and his co-defendant attempted to enter the secure parking lot at the District Court to drop off paperwork. The defendant was the passenger in the car that his co-defendant drove to the court. The security officer denied them entrance and instructed the co-defendant driver to park in the visitor lot. The driver refused and caused a disturbance, causing a special agent to approach his car. The agent smelled a strong odor of marijuana coming from the car. A search of the car yielded two Ziploc bags containing 10 vials of marijuana. The co-defendant stated the marijuana was for sale. The defendant stated that he was an unemployed drug user and claimed that the marijuana was his. He also stated that he had just bought the marijuana for $100. The defendant was also searched and a dime bag of marijuana was found on him.
Williams faces a term of imprisonment of not more than one year and a $1,000 fine.
This case was investigated by the Department of Homeland Security Federal Protective Service and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Somerset County Man Admits Receipt of Child PornographyRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man today admitted receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Lomere T. Walls, 27, of Franklin Park, New Jersey, pleaded before U.S. District Judge Brian R. Martinotti in Newark federal court to an indictment charging him with one count of receipt of child pornography.
According to documents filed in this case and statements made in court:
Walls used a peer-to-peer file sharing program, which he installed on his computer several years ago, to download videos and images of child sexual abuse. Between July and November of 2016, law enforcement downloaded dozens videos of child pornography from Walls’ computer. After executing a search warrant at Walls’ home in November of 2016, agents located 149 videos and 92 images of child sexual abuse on Walls’ computer and phone. Walls admitted that he had been actively searching for videos and images of child pornography, which he had previously saved on his computer.
The receipt of child pornography charge to which Walls pleaded guilty carries a maximum potential penalty of 20 years in prison, a mandatory minimum sentence of five years in prison and a $250,000 fine. Walls will be required to register as a sex offender. Sentencing is scheduled for Sept. 5, 2019.U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Newark Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea. The investigation was also assisted by the Somerset County Prosecutor’s Office under the direction of Michael Robertson.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Special Prosecutions Division in Newark.
Defense counsel: Eric Mark, Esq., Newark
Sheboygan Couple Indicted on Methamphetamine and Gun ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that earlier today, a federal grand jury indictment was issued against Ey Lao (age: 34) and Lola Chang (age: 33) both of Sheboygan, Wisconsin.
The indictment alleges that the duo possessed in excess of 50 grams of actual (also known as “crystal”) methamphetamine with the intent to distribute the controlled substance in violation of Title 21, United States Code, Sections 841(a) and 841(b)(1)(A). If convicted of that charge, each faces a mandatory 10 year prison sentence and up to a lifetime of imprisonment. They could also be fined up to $10,000,000. Lao is additionally charged with being a felon in possession of a firearm and possessing a firearm in furtherance of a drug trafficking crime, contrary to Title 18, United States Code, Sections 922(g)(1) and 924(c)(1)(A). Lao faces up to 10 years imprisonment for possessing a firearm as a felon, and a mandatory 5 years imprisonment up to a lifetime of imprisonment for possessing the firearm in furtherance of drug distribution.
This case was investigated by the Brown County Sheriff’s Office and the Brown County Drug Task Force. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and is entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.
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Seven Indicted on Schenectady Drug ChargesRead the Press Release
ALBANY, NEW YORK – Six men were arrested and appeared in court today on charges of distributing drugs in the city of Schenectady, New York. A seventh person was already in custody and will be arraigned at a later date.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The following defendants were charged by indictment in unrelated cases:
Name
Age
Residence
Charge(s)
Robert Atkins
Rhamel Pate
36
37
Schenectady
Schenectady
Conspiracy to distribute, and distribution of, crack cocaine
Lasun Blount
28
Albany
Distribution of crack cocaine
Darryl Carr
39
Schenectady
Distribution of crack cocaine;
Possession of a firearm by a felon
Raymel Diaz
24
Schenectady
Distribution of crack cocaine
Darryl Flannagan
29
Schenectady
Distribution of heroin
Additionally, a seventh person, Trevon Brunson, age 21, of Schenectady, is in state custody and will be arraigned at a later date on charges of distributing heroin.
The charges in the indictments are merely accusations. Each defendant is presumed innocent unless and until proven guilty
Six defendants appeared today before United States Magistrate Judge Daniel J. Stewart, and are scheduled for detention hearings later in the week.
These cases were investigated by the FBI and its Capital District Safe Streets Gang Task Force, with assistance from New York State Police-Troop G, the Schenectady Police Department, the Schenectady County Sheriff’s Office, the Schenectady County District Attorney’s Office, the Internal Revenue Service, the Albany County Sheriff’s Office, the Albany County District Attorney’s Office, the Albany Police Department, the NYS Department of Corrections and Community Supervision, Office of Special Investigations, the Warren County Sheriff’s Office, and the Troy Police Department.
The firearm charge against Carr was investigated by the Schenectady County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
These cases are being prosecuted by Assistant U.S. Attorneys Robert A. Sharpe, Michael Barnett, and Emily Powers.
Rockford Man Indicted on Charges of Sex TraffickingRead the Press Release
ROCKFORD — A Rockford man was indicted today by a federal grand jury on charges of sex trafficking.
TRAVIS THOMAS, also known as “Travis Thompson,” “Dontaveous Harper,” and “Dontavious Harper," 28, was charged with sex trafficking and transporting an individual in interstate commerce for the purposes of prostitution.
As alleged in the indictment, Thomas coerced the victim to engage in sex acts from December 2017 to April 2018, and transported the victim from Illinois to Wisconsin and Texas in February 2018 to engage in prostitution.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The Hoffman Estates Police Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Monica V. Mallory.
The sex trafficking count is punishable by a statutory minimum sentence of 15 years in prison, and a maximum of life in prison. Transporting an individual for prostitution is punishable by up to ten years in prison. Transportation of an individual for prostitution through coercion is punishable by up to a maximum of life in prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Rochester Man Sentenced to 63 Months for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – Dennis Chaney, 31, of Rochester, was sentenced to 63 months in prison for participating in a fentanyl trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, as a result of an ongoing drug trafficking investigation, agents and task force officers with the Drug Enforcement Administration learned that on March 12, 2018, Chaney intended to travel from New Hampshire to a location in Lawrence, Massachusetts to purchase drugs. Agents conducted surveillance in the area of the transaction and observed Chaney’s vehicle arrive. They then followed the vehicle toward New Hampshire and provided information about the investigation to the New Hampshire State Police. A trooper observed the vehicle and stopped the vehicle for traffic violations. The trooper used his drug detection dog, which alerted to Chaney’s vehicle. A search warrant subsequently was executed on the vehicle, which resulted in the discovery of approximately 225 grams of fentanyl.
On March 14, 2018, Chaney telephoned his source in Lawrence, Massachusetts and ordered more drugs. Agents conducted surveillance in the area of the transaction and observed Chaney’s vehicle arrive. They then followed the vehicle toward New Hampshire and again shared this information with the New Hampshire State Police. A trooper observed the vehicle and stopped the vehicle for traffic violations. After a drug detection dog alerted to the vehicle, a search of the vehicle resulted in the seizure of approximately 98 grams of fentanyl.
During the investigation, Chaney ordered and purchased approximately 845 grams of fentanyl.
Chaney previously pleaded guilty on October 10, 2018.
“This case once again highlights the interstate transportation route traffickers have used to import the deadly drug fentanyl into New Hampshire,” said U.S. Attorney Murray. “In order to stop this illegal practice, law enforcement will continue to be aggressive in our efforts to identify, prosecute, and incarcerate those who are distributing this lethal substance. Those who choose to sell fentanyl in the Granite State should understand that they are very likely to find themselves in federal prison.”
“Fentanyl is causing great damage to our communities,” said DEA Special Agent in Charge Brian D. Boyle. “The DEA will continue to use every resource available to identify those, like Mr. Chaney, who are contributing to the crisis. Today’s sentence not only holds Mr. Chaney accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky, Seth R. Aframe and Debra M. Walsh.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Rochester Man Pleads Guilty to Sexually Exploiting A ChildRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y. U.S. Attorney James P. Kennedy, Jr. announced today that John Kohlmeier, 38, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to coercion and enticement of a minor. The charge carries a mandatory minimum penalty of 10 years in prison, and a maximum of life.Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that between February 2018 and March 19, 2018, the defendant and co-defendant Bonnie Hughes sexually abused a 10-year-old girl. During that time, Kohlmeier and Hughes together engaged in illegal sexual contact with the minor victim on numerous occasions. These instances of abuse occurred at 130 Milford Street in Rochester, always with Hughes present and, in some instances, participating.
Hughes took two sexually explicit pictures of the minor victim using the minor victim’s cell phone and sent them to Kohlmeier.
Also between February 2018 and March 19, 2018, the defendant used a cell phone to entice and attempt to entice the minor victim into have sexual conduct with the defendant by texting with Hughes. In addition, on March 19, 2018, forced the minor to engage in a sexual act.
Kohlmeier was recently convicted in New York State Court.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, the Greece Police Department, under the direction of Chief Patrick D. Phelan, and Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
Sentencing is scheduled for June 24, 2019, at 9:15 a.m. before Judge Siragusa.
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Rochester Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Scott Wilbert, 47, of Rochester, NY, pleaded guilty before U.S. Magistrate Judge Jonathan W. Feldman to possession of child pornography. According to the plea agreement, the defendant will be sentenced to serve 15 years in prison.
Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that the FBI Child Exploitation Task Force identified Wilbert sending child pornography from his computer web camera to another user of an online chat site. As a result, the New York State Police began to investigate the defendant, who was identified as a registered sex offender from a prior conviction for sexual abuse of a child.
In February 2016, officers executed a search warrant at Wilbert’s residence on Garson Avenue in Rochester and seized a laptop computer and SD cards containing thousands of images and videos of child pornography. A forensic examination of the computer and SD cards recovered sexually explicit photographs of prepubescent children, some as young as toddlers.
The plea is the culmination of an investigation by the New York State Police, under the direction of Major Eric Laughton, and Special Agents of Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent in Charge Gary Loeffert.
This case was brought as 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 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 www.projectsafechildhood.gov.
Sentencing will be scheduled at a later date before U.S. District Judge David G. Larimer.
Revere Man Pleads Guilty to Trafficking Counterfeit GoodsRead the Press Release
BOSTON - A Revere man pleaded guilty today in federal court in Boston in connection with importing and selling counterfeit apparel.
Paul G. Adri, 34, pleaded guilty to one count of trafficking in counterfeit goods. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for July 9, 2019. Adri was arrested and charged by complaint in December 2018 and was released on conditions.
Adri improperly utilized trademarks held by Adidas, Nike, MLB, the NFL, and the NBA, among others, by importing counterfeit goods from Hong Kong and China and selling them on eBay. Adri ignored two separate notices from U.S. Customs and Border Protection relating to his illegal counterfeiting activities.
The charge of trafficking in counterfeit goods and services provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of up to $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Mackenzie Queenin of Lelling’s Cybercrime Unit is prosecuting the case.
Retired Attorney Pleads Guilty to Tax EvasionRead the Press Release
PORTLAND, Ore.—Bruce L. Lamon, 64, of Hillsboro, Oregon, pleaded guilty today to one count of tax evasion after failing to pay $744,000 in personal income taxes.
“As a retired attorney, Lamon was well-versed in the law and clearly knew tax evasion was a crime. It’s a crime of greed and arrogance that hurts every citizen who lawfully pays their taxes,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“Mr. Lamon’s chosen profession to serve those seeking justice from the law stands in stark contrast to his admission of guilt to evade his personal tax liability,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “IRS-Criminal Investigation prioritizes bringing to justice individuals who engage in tax evasion in order to protect the integrity of the tax system by ensuring everyone pays their share.”
According to court documents, between 2006 and 2012, Lamon worked as a commercial litigator at a law firm in Honolulu, Hawaii earning a substantial income. After retiring in 2012, he withdrew all the funds in his retirement account—approximately $395,000—and moved to Hillsboro. As of mid-October 2015, Lamon owed approximately $744,000 in individual income taxes for calendar years 2008 through 2013. To conceal his assets from the IRS and evade payment of his taxes, Lamon paid cash for vehicles, titling them in his former spouse’s name, and purchased rental properties with cash using an LLC registered in Hawaii.
On October 22, 2018, a federal grand jury in Portland returned a two-count indictment alleging Lamon evaded payment of his taxes for calendar years 2008 through 2013 and failed to disclose rental income in an application to proceed In Forma Pauperis in a civil case he filed in federal court in 2016.
Lamon faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on July 9, 2019 before U.S. District Court Judge Marco A. Hernandez.
As part of the plea agreement, Lamon will pay $744,000 in restitution to the IRS. At sentencing, the government will move to dismiss Count 2 of the October 2018 indictment charging Lamon with giving a false statement.
This case was investigated by IRS Criminal Investigation (IRS-CI) and prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
The U.S. Attorney’s Office and IRS-CI remind Oregonians that tax day is Monday, April 15, 2019. For tips to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit the IRS website: https://www.irs.gov/help-resources.
Princeton Couple Sentenced to Prison for Federal Robbery and Gun CrimesRead the Press Release
BLUEFIELD, W.Va. – A Princeton husband and wife were sentenced to federal prison for federal robbery and gun charges, announced United States Attorney Mike Stuart. Sarah K. Bailey, 39, and Michael Justin Bailey, 38, were each sentenced to federal prison for 16 years, and 20 years and 6 months, respectively. Both defendants previously entered guilty pleas to conspiracy to commit Hobbs Act robberies and brandishing a firearm during and in relation to a crime of violence. Stuart commended the investigative efforts of the Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Southern Regional Drug and Violent Crime Task Force, with the assistance and co-operation of law enforcement personnel in the states of Virginia and North Carolina.
“A modern day Bonnie and Clyde – the Baileys committed heinous crimes,” said United States Attorney Mike Stuart. “The exemplary work of law enforcement brought their string of violence to an end. The Baileys will now be spending many years behind bars.”
“These violent criminals threatened the safety of our communities,” stated ATF Special Agent in Charge Stuart Lowrey of the Louisville Field Division. “ATF, strives to be ‘no better partner’ to federal, state, and local law enforcement agencies. Together, we will continue to aggressively investigate, arrest and pursue prosecution of these offenders. Our shared commitment to reducing violent crime continues to make West Virginia safer for everyone.”
The Baileys previously admitted to robbing two separate video poker parlors in the Southern District of West Virginia. The Baileys admitted that on October 26, 2017, they robbed a video poker parlor near Peterstown, West Virginia. The Baileys further admitted that during the robbery, a 76 year old employee was struck several times in the head with a club, causing injury to the employee. They admitted to then binding the employee with duct tape, and stealing money and personal items from this employee.
The Baileys also previously admitted to committing another robbery as part of the conspiracy. This robbery occurred near Bluefield, West Virginia on November 5, 2017. On November 5, the Baileys went to a video poker parlor where Sarah Bailey had previously worked near Bluefield. On this date, they used firearms that had previously been stolen to rob the video poker parlor. During the robbery, the Baileys admitted to threatening an employee and customers with the firearms and again binding an employee with duct tape. They further admitted to stealing nearly $5,000 and personal items and effects from the employee and customers. The Baileys then fled to North Carolina where they were arrested after being found in possession of the money and other stolen items from both of the robbery locations.
Assistant United States Attorney Timothy D. Boggess handled the prosecutions. Senior United States District Judge David A. Faber imposed the sentences.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Pittsburgh Man Sentenced to 4 Years in Prison for Role in Drug Trafficking ConspiracyRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to a term of imprisonment of four years (48 months) in prison, to be followed by five years of supervised release, on his conviction of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and a fentanyl analogue, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Termane Thomass Eleam, 33.
According to information presented to the court, on November 3, 2016, Department of Homeland Security, the Pennsylvania State Police, and the Monroeville Police executed a search warrant on Rooms 238 and 305 of the Days Inn, located in Monroeville, Pennsylvania. During the search of Room 238, investigators seized suspected heroin, gloves, and distribution paraphernalia, including packaging materials, blenders, and multiple cell phones. Wilfredo Torres and Donte Spence were in Room 238. A cousin of Eleam was in Room 305 bagging the suspected heroin in exchange for payment. The drugs recovered from both rooms tested positive for a total of approximately 200 grams of furanyl fentanyl and heroin.
Eleam had departed the Days Inn just prior to the execution of the search warrant, and returned to the hotel as the search warrant was being executed. When officers searched both his person and vehicle following the execution of the search warrant, a small amount of marijuana and related paraphernalia were recovered.
Previously, Torres was sentenced to 20 years in prison and Spence was sentenced to three years in prison for their roles in the conspiracy.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Department of Homeland Security, the Pennsylvania State Police and the Monroeville Police Department conducted the investigation that led to the prosecution of Eleam.
Pittsburgh Felon Indicted on Federal Drug and Gun ChargesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania has been indicted by a federal grand jury on charges of violating federal firearms laws and drug possession, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Kalief Jamil Malik Rethage, 39, as the sole defendant.
According to the Indictment, from September 25, 2018, to December 10, 2018, Rethage was unlawfully in possession of a semi-automatic pistol, a spent cartridge, and various ammunition. Rethage is prohibited from possessing a firearm or ammunition because he is a convicted felon. The Indictment further alleges that on December 10, 2018, Rethage was in possession of marijuana.
The law provides for a maximum total sentence of not more than 11 years in prison, a fine of not more than $500,000.00, a term of supervised release not more than 3 years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Agency (DEA) conducted the investigation leading to the Indictment in this case with valuable assistance from the Pittsburgh Bureau of Police and the Pennsylvania Board of Probation and Parole.
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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Paterson Police Officer Sentenced to Six Months in Prison for Concealing Civil Rights Crime in Connection with Another Officer’s Assault of Attempted Suicide VictimRead the Press Release
NEWARK, N.J. – A City of Paterson police officer was sentenced today to six months in prison for concealing the assault of an attempted suicide victim by another police officer at St. Joseph’s Medical Center in Paterson, U.S. Attorney Craig Carpenito announced.
Police Officer Roger Then, 29, of Paterson, previously pleaded guilty before U.S. District Judge William J. Martini to Count 4 of the indictment against him, charging him with misprision of felony, for concealing the civil rights crime committed by his partner, Ruben McAusland. U.S. District Judge William H. Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and another case and statements made in court:
Then and McAusland were police officers with the Paterson Police Department. On March 5, 2018, they responded to a call from an attempted suicide victim. The victim called 911 and was taken by the Paterson Fire Department to St. Joseph’s Medical Center. Then and McAusland responded to the victim’s residence and subsequently followed the Fire Department to the hospital to monitor the victim.
Two videos captured some of the events that took place in the hospital that night. In the first video, captured by hospital surveillance, the victim was in a wheelchair. McAusland was standing at the hospital admissions desk. The victim appeared to throw an object down the hallway. McAusland, looking angry, pushed the victim’s wheelchair with his hands and punched the victim in the face. As the victim fell towards the ground, still in the wheelchair, Then grabbed the victim by the back of the neck and further pushed the victim to the ground. Then reached for his handcuffs, but McAusland told Then not to handcuff the individual and McAusland further stated, “I got this.”
In the second video, taken by Then, using his cellular telephone, the victim was on his back in a hospital bed. The victim said, “Right here? See my cheek?” McAusland said, “You have the right guy today.” Then turned the camera toward himself and smiled. Then next turned the camera back towards the victim and McAusland. The victim said, “Ha, ha, bitch.” McAusland responded, “I’m a what?” The victim said, “Do it.” McAusland put on a pair of hospital gloves and proceeded to violently strike the victim twice across the face. McAusland then stood over the victim and said, “I ain’t fucking playing with you.” The victim covered his face with his hands and was silent. McAusland continued, “Calm your ass down.” Rather than intervening to stop McAusland’s assault of the victim, Then recorded it.
Then and McAusland submitted a police report in connection with the events of March 5, 2018. The police report did not mention that McAusland punched the victim and that Then grabbed the victim by the neck and pushed the victim towards the ground, as captured in the first video. The police report also did not mention that McAusland violently struck the victim, twice, in a hospital room, as depicted in the second video. Nor did the police report mention that Then had recorded the second assault on his cell phone and failed to intervene to stop it from happening.
The victim suffered multiple injuries to his face, including an eye injury that required surgery, as a result of these assaults.
McAusland previously pleaded guilty to possessing with intent to distribute narcotics and deprivation of civil rights under color of law and was sentenced March 27, 2019, to 66 months in prison.
In addition to the prison term, Judge Walls sentenced Then to one year of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs for their assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal, Deputy Chief of the Criminal Division, and Lee M. Cortes Jr., Deputy Chief of the Special Prosecutions Division.
Defense counsel: John P. McGovern Esq., Newark
Para-Educator Charged with Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Bradley Smith, 66, of Jericho, Vermont, was charged by criminal complaint in United States District Court in Burlington, Vermont, with one count of possession of child pornography. Smith was arrested and made his initial appearance to answer the complaint in federal court on April 1, 2019. At the hearing, U.S. Magistrate Judge John M. Conroy ordered Smith released on conditions. Smith is next scheduled to appear in Federal court on April 16, 2019.
According to court records and proceedings, the Vermont Internet Crimes Against Children Task Force (the ICAC) received a CyberTip from the National Center for Missing and Exploited Children (NCMEC) which reported that a file depicting child pornography had been uploaded to an Internet search engine. Law enforcement investigated the CyberTip and determined that the image of child pornography had been uploaded from Smith’s residence in Jericho, Vermont. On April 1, 2019, law enforcement executed a search warrant at Smith’s residence. At this time, Smith disclosed, among other things, that he possessed child pornography on his computer, that he had been interested in child pornography for “decades,” and that he found images of child pornography to be sexually arousing. A forensic preview search of Smith’s computer revealed that he possessed more than 100 images of suspected child pornography.
Prior to execution of the search warrant and his arrest, Smith was employed as a para-educator in a first-grade classroom at the Union Memorial School in Colchester, Vermont.
Special Agent Caitlin Moynihan of Homeland Security Investigations is the lead Federal investigator. She can be reached at (802) 660-5016.
U.S. Attorney Nolan emphasized that the defendant is presumed innocent until and unless proven guilty. If convicted, Smith’s sentence will be determined by the advisory United States Sentencing Guidelines.
U.S. Attorney Nolan commended the efforts of the Vermont Internet Crimes Against Children Task Force and Homeland Security Investigations.
Assistant U.S. Attorney Barbara A. Masterson is handling the prosecution of Smith. Assistant Federal Public Defender Steven L. Barth represents Smith.
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ohio man indicted for crossing state lines to have illegal sexual contactRead the Press Release
WHEELING, WEST VIRGINIA – James Vincent Scott, of Hudson, Ohio, was indicted today by a federal grand jury on a sex charge, United States Attorney Bill Powell announced.
Scott, age 31, was indicted on one count of “Travel with Intent to Engage in Illicit Sexual Conduct.” Scott is accused of traveling from Ohio to Harrison County, West Virginia, to engage in illegal sexual conduct in February 2019.
Scott faces up to 30 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae Demasi-Lemon is prosecuting the cases on behalf of the government. The Bridgeport Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Ohio couple indicted for filing inaccurate bankruptcy claimRead the Press Release
WHEELING, WEST VIRGINIA – Larry E. Brown and Jacinta Jo Brown, both of Wintersville, Ohio, were indicted today by a federal grand jury on a false bankruptcy charge, United States Attorney Bill Powell announced.
Larry Brown, age 68, and Jacinta Brown, age 64, were each indicted on one count of “False Bankruptcy Declaration.” The Browns are accused of fraudulently omitting an interest in an ongoing claim against a corporation, as required by law.
The Browns each face up to five years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jeffrey A. Finucane is prosecuting the cases on behalf of the government.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
New York Man Sentenced in Manhattan Federal Court to 20 Years in Prison for Attempting to Provide and Conspiring to Provide Material Support to ISISRead the Press Release
Adam Raishani, aka “Saddam Mohamed Raishani,” 32, of the Bronx, New York, was sentenced to 20 years in prison to be followed by 20 years of supervised release for attempting to provide and conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers and U.S. Attorney Geoffrey S. Berman for the Southern District of New York made the announcement. Raishani pleaded guilty to a Superseding Information on Nov. 14, 2018, before U.S. District Judge Ronnie Abrams, who also imposed today’s sentence.
“Raishani tried to leave his young family to travel overseas to join ISIS,” said Assistant Attorney General Demers. “Fortunately, he was arrested before he could leave the country. Raishani is the latest in the long line of would-be terrorists whom we have arrested and prosecuted before they could accomplish their mission to provide material support to ISIS overseas. I commend the agents, analysts, and prosecutors who are responsible for this result.”
“Adam Raishani may be a U.S. citizen, but he pledged his allegiance to the Islamic State of Iraq and al-Sham, the terrorist organization that seeks to destroy the ideals inherent to America,” said U.S. Attorney Berman. “In his efforts to show support to the organization, he helped another man make a trip to the Middle East so that he could join and train. Then, a year later, Raishani decided to follow him, leaving Raishani’s wife and child behind in the United States. Thankfully law enforcement was there to arrest him before he could make his dream of jihad a reality. Now, Raishani will spend the next 20 years of his life behind bars for his treachery.”
According to the Superseding Information, other court filings, and statements made during court proceedings:
Beginning in the fall of 2015, Raishani conspired with another ISIS supporter (CC-1) to provide material support and resources to ISIS. Raishani and CC-1 agreed to travel overseas to join and wage jihad for ISIS, with CC-1 to depart first. On Oct. 30, 2015, CC-1 departed from JFK Airport for Istanbul, Turkey, where he planned to cross into Syria to join and fight for ISIS. Raishani helped coordinate CC-1’s transportation from the Bronx, New York, to John F. Kennedy International Airport (JFK Airport), and Raishani accompanied CC-1 from the Bronx to JFK Airport.
Raishani continued communicating with CC-1 following CC-1’s departure, using an encrypted email application in an effort to avoid law enforcement detection. For example, on Jan. 2, 2016, Raishani sent an email to CC-1 stating: “Glad tidings brother. Its [sic] been some time since your voyage. I pray to Allah The ALL MIGHTY to grant you success. Until next time.”[1] On April 1, 2016, Raishani sent another email to CC-1 stating: “I hope Allah has bestowed you what you were seeking. . . . May Allah grant you sincere and clean intentions and make you among the righteous in Janatal Firdaus [a reference to Islamic paradise]. . . . Please return this email and respond to what we agreed upon before your departure. Until next time.” On May 3, 2016, CC-1 responded to Raishani, indicating that he had succeeded in joining the Islamic State. CC-1 informed Raishani that CC-1 was “fine and well,” that CC-1 “wished you [Raishani] were here with me,” and that “here we are living with izza [honor].”
Also in May 2016, CC-1 posted content on a particular social media application (Application-1) indicating that CC-1 was living in the Islamic State and fighting on its behalf. For example, CC-1 sent messages to another user of Application-1 stating: “I’m living in the Islamic state safely and secure by the permission of Allah,” “[h]ere we are fighting the kuffars [non-believers],” and “I left the land of kuffars now I’m living in the khilafah [the caliphate].” CC-1 also posted a photograph on Application-1 that shows CC-1 carrying an assault rifle and the flag of ISIS.
Between January and June of 2017, Raishani had a series of meetings with individuals who were, unbeknownst to Raishani, a confidential source working at the direction of law enforcement and an undercover law enforcement officer. In the course of those meetings, Raishani admitted that he had previously helped another person (CC-1) travel overseas to join ISIS, and stated that he intended to travel overseas to join ISIS himself. During those meetings, Raishani also downloaded and viewed violent ISIS propaganda videos, and expressed his desire to wage jihad on behalf of ISIS and his belief that the Quran can be read to justify the violence, including beheadings, perpetrated by ISIS.
By April 2017, Raishani was actively planning to travel abroad to join ISIS. Raishani indicated that he aspired to join ISIS in Syria and that he aimed to travel before the end of Ramadan, an Islamic holy month that ran from approximately May 26 through June 24 of 2017. In June 2017, Raishani made preparations to leave, including by paying off debts and purchasing clothing that he intended to wear for training with ISIS overseas. Raishani indicated his intention to meet an ISIS member in Turkey, who would facilitate Raishani’s joining the terrorist organization in Syria. In the course of communications with an undercover law enforcement officer, Raishani conveyed that he was prepared to die, to martyr himself, for ISIS. On June 21, 2017, Raishani attempted to board a flight bound for Turkey (via Portugal) at JFK Airport, at which point law enforcement officers arrested him.
Following Raishani’s arrest, the FBI searched Raishani’s Bronx residence pursuant to a search warrant. Among the evidence recovered was a letter from Raishani addressed to members of his family, which the FBI found in a safe in Raishani’s bedroom. In the letter, Raishani – who left behind his wife and young son when he attempted to travel to Syria to join ISIS – advised his wife that she could still choose to “[j]oin” him in the Islamic State, and he expressed regret that she did not share his radical views and that he had been unable to convince her to accompany him to join ISIS. Raishani also wrote: “Do Not Divulge this document and other documents that I have giv[en] to you to the authorities. Do not believe their plots. Do not divulge my absences but instead say I went to do volunteering outside the country with my medical skills and health background.”
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In addition to the prison term, Raishani, 32, of the Bronx, New York, was sentenced to 20 years of supervised release.
Mr. Demers and Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the NYPD’s Intelligence Division. Mr. Demers and Mr. Berman also thanked the New York Office of U.S. Customs and Border Protection.
Assistant U.S. Attorneys Sidhardha Kamaraju, Jane Kim, and George D. Turner are in charge of the prosecution, with assistance from Trial Attorney Kevin C. Nunnally of the Counterterrorism Section.
[1] Communications and conversations discussed herein are described in substance and in part.
New Haven Man Charged with Illegal Gun PossessionRead 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 an indictment charging MARIANO IRIZARRY, 35, of New Haven, with one count of possession of a firearm a by a convicted felon.
The indictment was returned on March 19, 2019. Irizarry appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and entered a plea of not guilty to the offense.
As alleged in court documents and statements made in court, in the early morning hours of January 1, 2019, New Haven Police officers assigned to a New Year’s Eve crime prevention detail responded to a disturbance and a report of an individual with a gun in front of a nightclub on Hamilton Street in New Haven. At the scene, a bystander identified Irizarry as being in possession of a gun. After ignoring various commands from officers, Irizarry opened the driver’s side door of his vehicle and made furtive movements in the area of the steering wheel. He then closed the door and surrendered to officers. A subsequent search of the area beneath the steering wheel revealed a loaded .40 caliber Glock 27 pistol.
The firearm had been reported stolen in a residential burglary in New Haven in March 2015.
It is further alleged that Irizarry’s criminal history includes felony drug convictions in 2000 and 2010, and a felony conviction in August 2000 for illegal sexual contact with a minor.
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.
If convicted of the offense, Irizarry faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
Irizarry was arrested on a federal criminal complaint on February 6. He is released on a $50,000 bond.
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 and the New Haven Police Department. The case is being prosecuted by Assistant United States Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Moss Point Man Sentenced to over Ten Years in Federal Prison for Drug Trafficking ConspiracyRead the Press Release
Gulfport, MS – Dale Ricardo Easterling, 43, of Moss Point, was sentenced today by U.S. District Judge Louis Guirola, Jr. to 128 months in federal prison followed by five years of supervised release for conspiracy to possess with intent to distribute five kilograms or more of cocaine announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation (FBI). Easterling was also ordered to pay a $5,000 fine.
On July 13, 2018, a Louisiana State Trooper stopped a car driven by Easterling traveling east bound on Interstate 10. The trooper observed nervous behavior by Easterling. He searched the car and found a hidden compartment with seven kilograms of cocaine. Easterling admitted that he was taking the cocaine back to Moss Point for further distribution. He further admitted that he had previously trafficked cocaine to Jackson County.
On the same date, the FBI Safe Streets Task Force executed a search warrant at Easterling’s home. They found various rounds of ammunition, over 500 grams of marijuana brownies, 1.5 kilograms of marijuana, 833 grams of Fentanyl, 5 grams of heroin, and 99 pills that looked like oxycodone. The suspected oxycodone pills were sent to the Mississippi Crime Laboratory and found to contain fentanyl and acetaminophen.
The case was investigated by FBI Safe Streets Task Force, the Drug Enforcement Administration, South Mississippi Metro Enforcement Team, and the Louisiana State Police. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Mobile Resident Receives Two Years Imprisonment for Bank RobberyRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that United States District Judge William H. Steele sentenced defendant Stephen Allen Mathes, 37, a resident of Mobile, Alabama, to twenty-four months imprisonment for bank robbery. As part of the sentence, the judge ordered that Mathes undergo three years of supervised release after finishing his term of imprisonment, pay a $100 mandatory special assessment, receive drug, alcohol, and mental health treatment as directed by the U.S. Probation Office, and pay restitution totaling $2,400 to the victim financial institution.
According to documents filed with the court as part of his guilty plea, around 10:00am on August 31, 2018, a white male entered BBVA Compass, 6470 US Hwy 90, Spanish Fort, Alabama 36527, a federally insured bank. He was unmasked and gave a bank teller a robbery note that said, “This is a Robbery[.] Place all 50 & 100 Bills in a [sic] envelope [.] No funny money or marked bills & nobody gets hurt!” The teller asked if the male was serious about wanting to rob the bank. He said yes. The teller gave the male $2,400, and the robber left the bank. The suspect robbed the bank by means of intimidation but did not use a weapon. The robbery note was left on the teller’s side of the counter.
A Spanish Fort Police Department detective responded to the scene around 10:30am. The bank’s surveillance system captured the robbery, but no outside video of the offense was available. The police sent pictures of the suspect to local media. A person called the police and said he recognized the robber as Mathes. The police later learned that the robber went to BBVA Compass in Daphne before 10:00am on August 31.
In a photo line-up on September 4, 2018, the BBVA Compass bank teller in Spanish Fort who had interacted with the suspect identified Mathes as the robber. Later that day, the police obtained a state warrant to arrest Mathes.
On September 6, 2018, agents with the Spanish Fort Police Department and the FBI went to Mathes’s home in Mobile, Alabama. He was taken into custody without incident and agreed to be interviewed. Mathes was transported to FBI in Mobile and Mirandized. He waived Miranda and confessed to robbing BBVA Compass in Spanish Fort and to earlier visiting BBVA Compass in Daphne to open an account. Mathes said he entered the bank in Spanish Fort on August 31 with a robbery note that he had created earlier that day. Mathes also gave a written statement and consent for police to search his phone and apartment, where agents found the shoes he wore during the robbery.
On October 25, 2018, a federal grand jury for the Southern District of Alabama charged Mathes with one count of bank robbery in violation of 18 U.S.C. § 2113(a). On December 27, 2018, Mathes pleaded guilty before District Judge Steele to the charge.
The Federal Bureau of Investigation and the Spanish Fort Police Department investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.Milton Woman Arrested for Running Multimillion-Dollar Black Market Marijuana EnterpriseRead the Press Release
BOSTON – A Milton woman was arrested today and charged in federal court in Boston in connection with her ownership and management of Northern Herb, a black-market marijuana delivery service that operated in Massachusetts from 2015 to 2018.
Deana Martin, 51, was charged with one count of conspiring to distribute more than 100 kilograms of marijuana. She will appear in federal court in Boston later today.
According to the charging document, Martin owned and managed Northern Herb, which operated a website offering marijuana (including raw marijuana, pre-rolled cigarettes, and marijuana edibles) for sale. While Northern Herb purported to provide medical marijuana, it did not require a customer to provide proof of a medical marijuana card. Furthermore, it is alleged that Northern Herb would deliver marijuana to unattended locations (such as a front door or hallway) where unknown third parties might have access to it. Northern Herb used locations in Canton, Milton, Foxborough, and Hyde Park to store and distribute marijuana, and employed at least 25 workers.
It is further alleged that Martin planned for Northern Herb to use a sales team that would be incentivized based on monthly marijuana sales. One such incentivized tier, for instance, would be for selling more than 10 pounds of marijuana per month.
From May 2016 through July 2018, Northern Herb allegedly had total revenue exceeding $14 million, and Martin herself claimed an income of $80,000 per month. Martin controlled numerous bank accounts into which funds derived from Northern Herb sales were laundered, and she used several accounts in another person’s name to conceal her control over this money and to hide it from the U.S. Bankruptcy Court. Martin allegedly used money from Northern Herb sales to pay more than $300,000 towards the mortgage on her house and to buy a 2017 Porsche Boxster, among other things.
It is further alleged that Northern Herb did not withhold or pay taxes on its millions of dollars in marijuana sales. In an email referencing cannabis taxes charged by one state government, Martin wrote: “Zero taxes is still better.” Northern Herb did not remit or pay employment taxes in connection with its workforce or issue its employees W-2s or 1099s.
The charge provides for a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The United States Postal Inspection Service also provided valuable assistance with this investigation. Assistant U.S. Attorney William Abely of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Michigan Fish Dealer Sentenced for Unlawful Trafficking in Michigan Lake TroutRead the Press Release
John H. Cross III (Cross) and John Cross Fisheries Inc. (Cross Fisheries) were sentenced yesterday in Kalamazoo, Michigan, for trafficking in illegally transported and sold lake trout, announced Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division and United States Attorney Andrew Birge for the Western District of Michigan. Cross Fisheries was also sentenced for making false records about whitefish purchases.
The two defendants previously had pled guilty to one misdemeanor count of violating the Lacey Act by knowingly selling and attempting to sell in interstate commerce lake trout, when they should have known the fish was possessed and sold in violation of underlying State law, specifically Mich. Comp. Laws, Sections 324.47333 and 324.47319 which prohibit any person from marketing, possessing, or offering for sale any fish illegally taken from the relevant waters. Cross Fisheries also pled guilty to one felony count of violating the Lacey Act by knowingly making a false record and account of whitefish that was intended to be sold and transported in interstate commerce.
Cross was ordered to serve 12 months in prison – intermittently during a five year term of probation – for his role in trafficking lake trout. Cross Fisheries was sentenced to five years’ probation. Both defendants were ordered to pay $1,032,132.00 in restitution, jointly and severally, to the National Fish Hatcheries, which stock Lake Michigan with lake trout. In addition, Cross Fisheries was ordered to create and implement a compliance plan to prevent such violations from reoccurring.
“Purchasing illegally caught fish for interstate sale and then covering up the source of those fish by falsifying records is cheating, plain and simple — and where discovered, the Justice Department will seek to punish such conduct,” said Assistant Attorney General Jeffrey Bossert Clark. “For three years, Cross Fisheries harmed law-abiding competitors and the American taxpayers who fund the stocking of Lake Michigan with trout, but that conduct has now come to an end.”
“The federally funded stocking of fish and the regulations designed to preserve these natural and communal resources were simply treated as an opportunity for extra profit here and in other cases stemming from Operation Fishing for Funds. This was essentially stealing from competitors, the government, and ultimately the future,” commented U.S. Attorney Andrew Birge.
“We are pleased to see this long-term illegal commercialization come to an end. This type of large-scale wildlife trafficking can significantly impact the sustainability of the resources we are charged to protect. This is especially relevant because we have been working for years to restore the Great Lakes fishery,” said Edward Grace, Assistant Director of the Office of Law Enforcement.
According to documents filed in court, between September 2011 and October 2013, Cross and Cross Fisheries repeatedly purchased lake trout from “Fisherman A,” who Defendants knew and should have known to be a tribal fisherman who fished from a boat that was converted to trap net gear at taxpayers’ expense and thus could not lawfully harvest lake trout. Cross and Cross Fisheries made and submitted records and accounts of these purchases stating that the seller was “Fisherman B” (who Defendants knew and should have known to be a licensed gillnet fisherman who could legally harvest lake trout).
Between approximately September 2011 and October 2013, Cross Fisheries, through its officers and employees, including Cross, made approximately forty-two purchases of lake trout from “Fisherman A,” totaling approximately 48,498 pounds, all of which was falsely reported by Cross Fisheries on its Wholesale Fish Dealer’s Purchase Records as being from “Fisherman B’s” gillnet license, and subsequently offered for sale and sold by Cross and others in interstate commerce.
This sentencing is one of the final pending cases arising from Operation Fishing for Funds, an undercover operation run for approximately two years by Special Agents of the U.S. Fish and Wildlife Service (USFWS). This undercover operation investigated the illegal harvest and sale of fish (primarily walleye and trout) taken from the Great Lakes. As part of the investigation, USFWS agents established and operated an undercover wholesale fish business in Baraga, Michigan, named Upper Peninsula North Fish Company (UPNFC). UPNFC bought and sold fish wholesale from individuals across the region, and also sold fish retail.
The Operation has resulted in twenty-one convictions, seven in tribal courts and fourteen in federal courts. To date, over $1.6 million in total restitution has been ordered to the USFWS National Fish Hatcheries and tribal fish hatcheries; this amount reflects the funds needed to restock hatchery fingerlings necessary to replace the illegally harvested fish.
The Lacey Act, 16 U.S.C. §§ 3371-3378, prohibits trafficking in fish and wildlife or plants taken, possessed, transported, or sold in violation of underlying federal, state, foreign, or Indian tribal law. The Lacey Act also prohibits making or submitting a false label, record, or account of fish, wildlife, or plant that has been or is intended to be transported in interstate or foreign commence.
Operation Fishing for Funds was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement with assistance of the Michigan and Wisconsin Departments of Natural Resources. The prosecutions were handled by prosecutors from the Environmental Crimes Section of the U.S. Department of Justice, with assistance from the U.S. Attorney’s Offices for the Western and Eastern Districts of Michigan, and the Eastern District of Wisconsin, as well as The Grand Traverse Band of the Ottawa & Chippewa Indians, the Red Cliff Band of Lake Superior Chippewa, and the Sault St. Marie Tribe of Chippewa Indians.
Mexican National Pleads Guilty to Cocaine Trafficking ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JAIME LOPEZ, 37, a citizen of Mexico last residing in Norwalk, pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to a cocaine trafficking offense.
According to court documents and statements made in court, between March and June 2018, Lopez conspired with his brother, Rafael Lopez-Macias, and others, to traffic large quantities of cocaine. Lopez was intercepted on a court-authorized wiretap discussing the distribution of cocaine and, in May 2018, he was involved in the purchase of a kilogram of cocaine for approximately $28,000 from a source of supply in New Rochelle, New York.
Lopez has been detained since his arrest on October 11, 2018.
Lopez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. A sentencing date is not scheduled.
On March 27, 2019, Lopez-Macias, also a citizen of Mexico, pleaded guilty to one count of possession with intent to distribute, and distribution of, 500 grams or more of methamphetamine, and one count of reentry of removed alien. He is detained while awaiting sentencing.
This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Connecticut State Police, and the New Rochelle, Norwalk and Stamford Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Lauren C. Clark.
Mexican National Guilty of Making False Statement in Passport ApplicationRead the Press Release
TYLER, Texas –A 52-year-old Mexican national has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Baltazar Arrieta-Lara, a resident of Rusk County, Texas, pleaded guilty today to making a false statement in application for passport before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, since at least 2002, Arrieta-Lara, a citizen and national of Mexico, had been living without legal immigration status in the United States. Sometime after that, Arrieta-Lara obtained the name, date of birth, and social security number of a United States citizen and fraudulently used those identifiers to obtain various documents in the name of the U.S. citizen. In 2007, Arrieta-Lara utilized the U.S. citizen’s identity to obtain a United States Passport in the citizen’s name. After obtaining this U.S. passport, Arrieta-Lara traveled between the United States and Mexico on multiple occasions between 2009 and 2016. The Department of State's National Passport Center and Diplomatic Security Services discovered Arrieta-Lara's fraudulent use of the U.S. citizen's identity when Arrieta-Lara attempted to renew the passport.
Under the federal statute, Arrieta-Lara faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the U.S. Department of State, Bureau of Diplomatic Security and Department of Homeland Security-Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Allen Hurst.
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Marketers Convicted in Kickback and Health Care Fraud SchemeRead the Press Release
St. Louis, MO – Reuben Goodwin, 53, of Richton Park, IL; Phillip Jones, 58, of Markham, IL; and Dwight McTizic, 47, of Hazel Crest, IL; were convicted by a jury today in U.S. District Court of conspiring to pay illegal kickbacks and to commit health care fraud and 11 counts of health care fraud. The trial took place before U.S. District Court Judge Audrey G. Fleissig, who scheduled the sentencing hearing for July 12, 2019.
According to trial documents, Anthony Camillo, the managing partner of AMS Medical Laboratory Inc. (AMS) in St. Louis, Missouri, paid illegal kickbacks to “marketers” Goodwin, Jones, McTizic, and others who referred specimens, such as blood, saliva, and urine, to AMS. Per the agreements with the marketers, Camillo and AMS submitted reimbursement claims to Medicare and Medicaid for tests performed on the medical specimens, although the marketers and Camillo knew the Medicare and Medicaid Programs would not pay for tests on specimens obtained by illegal kickbacks. (The Federal Anti-Kickback law prohibits payments to individuals on a per item or percentage basis in return for referring services reimbursed by Medicare and Medicaid.). Anthony Camillo paid the marketers 50% of the profit and in some instances paid the marketers as much as $200 for each specimen referred to AMS. According to trial documents, Jones, Goodwin and McTizic were associated with several health service businesses in the Chicago area and referred specimens to AMS. The specimens were often obtained at health fairs held in businesses and churches in Illinois and Indiana. In many instances, the marketers used the names of doctors on orders for tests, although the doctors did not know the patients and had never ordered the tests.
Defendants face a penalty of five years imprisonment on the conspiracy count, ten years imprisonment on each health care fraud count, and a $250,000 fine on each count.
This case was investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, and the Missouri Medicaid Fraud Control Unit of the Missouri Attorney General’s Office. Assistant United States Attorneys Dorothy McMurtry and Gwendolyn Carroll handled the case for the U.S. Attorney’s Office.
Manhattan U.S. Attorney Announces Return to Its Rightful Owners of Old Master Painting Stolen by NazisRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the return to its rightful owner of a painting looted by the Nazis during World War II. The piece, A Scholar Sharpening His Quill, painted in 1639 by Salomon Koninck (the “Painting”), was stolen from the children and heirs of renowned Jewish art collector Adolphe Schloss. Schloss was a prominent Jewish art collector in Paris whose large collection of Old Master paintings (the “Schloss Collection”) was regarded as among the most significant private collections of Dutch and Flemish paintings assembled in prewar France.
Manhattan U.S. Attorney Geoffrey Berman said: “The campaign of cultural plunder that the Nazis directed against millions of innocent Jews was sadistic and unjust. That is why restitution in this case is more than returning a material good, but restoring a physical part of lost heritage. After nearly 80 years of being lost, this painting has been found and we are returning it to the Schloss family.”
During World War II, the Nazis created a division known as the Einsatzstab Reichleiter Rosenberg (the “ERR”) in order to “study” Jewish life and culture as part of the Nazis’ propagandist mission against the Jews. Principally, the ERR confiscated artworks and other cultural holdings of “the enemies of the Reich” on a massive scale, and registered and identified those artworks – even photographing them – thereby leaving behind a detailed record of the works that they stole. ERR records and photographs of art and cultural artifacts looted by the Nazis are digitized and available in an online database created by the Conference on Jewish Material Claims Against Germany, and this database includes a photograph of the Painting taken by the ERR during World War II.
Upon the outbreak of World War II in 1939, the Schloss heirs moved the Schloss Collection from Paris to Chateau de Chambon, a township in Southern France, in an attempt to protect the collection from looting by the Nazis. Due to its value and significance, the ERR made substantial efforts to locate and loot the Schloss Collection. In 1943, the Schloss Collection was ultimately looted by the ERR from its holding place in Chateau de Chambon. The Nazis took 262 paintings from the Schloss Collection, including the Painting, and transported them to a depot located at the Jeu de Paume, a prewar museum in Paris that was operated by the ERR during the war. Ultimately, the Painting was selected by the Nazis to be transported to the the “Führerbau,” Hitler’s headquarters in Munich, from where it and many other paintings disappeared in the aftermath of the war.
The Painting resurfaced in November 2017, when a Chilean private collector (the “Consignor”) attempted to sell the painting through a New York-based auction house. When the Painting arrived in New York from Chile, it was determined that it was the same Painting that came from the Schloss collection and had been looted by the Nazis. When the Consignor was informed of this, the Consignor stated that her father had purchased the Painting from Walter Andreas Hofer in Munich in 1952. Hofer was Hermann Göring’s chief purchasing agent and as such was a key player in the confiscation and looting of Jewish art collections during the Nazi era. In 1950, after being tried in absentia by a French military tribunal for his role in art plundering during World War II, Hofer was found guilty and sentenced to 10 years in prison.
The United States Attorney’s office filed a complaint seeking civil forfeiture of the painting on October 19, 2018, and Judge George B. Daniels entered a judgment of forfeiture on March 11, 2019. The United States today returns the painting to the Schloss heirs, and welcomes two members of the family to New York to accept the painting.
Mr. Berman thanked the FBI’s Art Crime Team for their assistance.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney Thane Rehn is in charge of the case.
Man Sentenced to 63 Months in Prison for Conspiring to Illegally Traffic Firearms from Georgia into the District of Columbia for ResaleRead the Press Release
WASHINGTON – Stephon Jeter, 29, of Washington, D.C., was sentenced today to a 63-month prison term on federal charges stemming from his role in a conspiracy to purchase firearms through a straw purchaser in the Atlanta, Ga. region and bring them to the District of Columbia for illegal resale.
The announcement was made by U.S. Attorney Jessie K. Liu, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Jeter pled guilty in January 2019, in the U.S. District Court for the District of Columbia, to one count of conspiring to illegally traffic in firearms and one count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. The plea agreement, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 63 months in prison to be followed by three years of supervised release. The Honorable Randolph D. Moss accepted the plea and sentenced the defendant accordingly.
The guilty plea followed an investigation by ATF, MPD, and the U.S. Attorney’s Office into a rash of firearm recoveries in the District of Columbia and surrounding areas in late 2016 and early 2017, all tied to a single straw purchaser in the Atlanta region. To date, approximately 25 firearms have been recovered in the District of Columbia or Maryland that, according to the government’s evidence, were purchased by this straw purchaser and illegally trafficked into the area by members of this conspiracy.
According to a factual proffer, beginning in or around August 2016 and continuing through mid-January 2017, Jeter conspired with others to illegally deal in firearms, travel in interstate commerce to acquire firearms for resale, and make false statements on firearm purchase forms, among other offenses. Jeter and his cousin, Quran Jeter, illegally obtained firearms from an accomplice in Atlanta. In his guilty plea, Stephon Jeter admitted that he and his cousin brought between 25 and 99 firearms from Georgia to the District of Columbia for resale.
In his plea, Jeter also admitted that he sold several firearms in the District of Columbia to people he knew, or had reasonable cause to believe, were prohibited from possessing guns because of their criminal records.
Jeter was arrested on March 9, 2018, and has been in custody ever since. At the time of his arrest in this case, Jeter was barred from possessing a firearm due to a previous conviction in Prince George’s County, Md. for assault.
Quran Jeter, 20, also of Washington, D.C., pled guilty on Oct. 30, 2018, to conspiring to illegally traffic in firearms. He is to be sentenced on June 12, 2019.
This case is being investigated by ATF, MPD, and a former Criminal Investigator of the U.S. Attorney’s Office now with the U.S. Postal Inspector’s Service. It is being prosecuted by Assistant U.S. Attorneys Kevin L. Rosenberg and William Schurmann of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia, with assistance from Paralegal Specialists Jeannette Litz and Katie Cowley.
Louisburg, NC Woman Sentenced to 3 Years in Federal Prison for Felon in Possession ChargeRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that United States District Judge James C. Dever, III sentenced LINDSEY NICOLE UNDERHILL, 28, of Louisburg to 36 months’ imprisonment, followed by 3 years of supervised released.
On October 18, 2018, UNDERHILL was named in an Indictment that charged her with Possession of Firearms by a Felon. On January 7, 2019, UNDERHILL pled guilty to that charge.
On May 30, 2018, UNDERHILL, a convicted felon, traveled to Arrow Pawn and Jewelry located in Raleigh, North Carolina, and pawned three firearms: a Mossberg 12 gauge shotgun; a Hi-Point 9mm handgun; and a North American Arms .22 caliber revolver.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought using the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violence crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Raleigh Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant United States Attorney Daniel W. Smith prosecuted the case for the government.
Local Medical Clinic Agrees to Settle Americans with Disabilities Act AllegationsRead the Press Release
NASHVILLE, Tenn. – April 2, 2019 - Murfreesboro Medical Clinic (MMC) has agreed to adopt a written Americans with Disabilities Act (ADA) nondiscrimination policy and pay $2,500 in compensatory damages to resolve ADA allegations, announced Don Cochran, United States Attorney for the Middle District of Tennessee. MMC has also agreed to provide ADA compliance training to its staff members who may interact with individuals with disabilities.
“The protections of the ADA are critically important to citizens with disabilities, particularly in obtaining necessary medical treatment,” said U.S. Attorney Cochran. “This is especially true of our senior population, and this office will continue its efforts to enforce the requirements of the ADA and its enacting regulations.”
MMC is a physician owned, multi-specialty clinic and an Accredited Surgery Center located in Murfreesboro, Tennessee, that provides a wide variety of medical and surgical procedures in over 20 specialties. MMC also operates five additional healthcare locations in Tennessee, including walk-in clinics in Murfreesboro and a spine, joint, and pain facility in Manchester.
The settlement resolves allegations made by a woman who is disabled and uses a wheelchair, who was denied medical treatment at the office of Dr. Joseph Boone due to her inability to transfer from her wheelchair to an examination chair. The woman alleged that MMC had informed her that she would need to bring someone with her to her appointment to help her transition to the examination chair, and then refused to make reasonable modifications to its practices in order to perform her examination. This forced her to seek care at a different medical facility further away from her home.
This case is a product of the Elder Justice Task Force of the United States Attorney’s Office for the Middle District of Tennessee, and part of the Department of Justice’s Elder Justice Initiative. For more information about the Elder Justice Task Force and the Department’s Elder Justice Initiative, visit their websites at https://www.justice.gov/usao-mdtn/elder-justice-task-force and https://www.justice.gov/elderjustice/.
Assistant United States Attorney Christopher C. Sabis handled the matter on behalf of the United States.
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Kewaunee Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that earlier today, a federal grand jury returned an indictment against Kyle D. Sanderson (age: 19) of Kewaunee, Wisconsin.
According to the indictment, Sanderson distributed and possessed images of child pornography including sexually explicit images of children and toddlers.
Sanderson faces two counts of distribution of child pornography, contrary to Title 18, United States Code, Section 2252A(a)(2)(A), and an additional count of possession of child pornography, contrary to Title 18, United States Code, Section 2252A(5)(b). As to each of the distribution counts, he faces a mandatory minimum sentence of 5 years and up to 20 years of incarceration in federal prison.
This case was investigated by the Wisconsin Department of Justice’s ICAC Task Force. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as 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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the 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 www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Indiana Man Sentenced to 10 Years in Prison on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Derek Carlson, 30, of Lafayette, Indiana, who was convicted of distribution of child pornography, was sentenced to serve 10 years in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that on September 28, 2017, the defendant sent a private message via Kik Messenger, to an undercover officer containing images of child pornography, including a prepubescent child involved in a sexual situation with an adult. During the following months, Carlson continued to send the undercover officer similar images and videos containing child pornography. Some of the videos and images depicted prepubescent children engaged in sexual conduct with adults, and children subjected to violent abuse.
On April 25, 2018, law enforcement officers executed a search warrant at the defendant’s residence and seized multiple electronic devices, which contained approximately 320 videos and 452 images depicting child pornography.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Huntington Man Pleads Guilty to Federal Methamphetamine CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who was caught with methamphetamine at his residence last summer pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Davon Travis-Jones Keith, 26, entered a guilty plea to possession with intent to distribute methamphetamine in federal court in Huntington. Stuart commended the investigative efforts of the Huntington Police Department and Parole Services with the West Virginia Division of Corrections and Rehabilitation.
“Great work by the Huntington Police Department and Parole Services,” said United States Attorney Mike Stuart. “Partnerships between law enforcement and corrections enhance public safety.”
On July 11, 2018, Keith’s parole officer conducted a home inspection at Keith’s residence located at 1342 Van Buren Avenue in Huntington. Keith was located in the residence and the officer conducted a search. The officer subsequently observed and seized almost 60 grams of crystal methamphetamine which was located on the top of a dresser in Keith’s bedroom. Keith admitted at the hearing that he possessed the methamphetamine and intended to distribute it.
Keith faces up to 20 years in federal prison when he is sentenced on July 15, 2019.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. United States District Judge Robert C. Chambers presided over the plea hearing.
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Gray Court Felon Sentenced to More Than Two Years in Federal Prison on Gun ChargeRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Derrick Bernard Cunningham, age 48, of Gray Court, South Carolina, was sentenced in federal court after pleading guilty to being a Felon in Possession of a Firearm. Chief United States District Judge R. Bryan Harwell of Florence sentenced Cunningham to 27 months in federal prison, followed by 3 years of court-ordered supervision. There is no parole in the federal system.
Evidence presented at Cunningham’s guilty plea hearing established that on May 26, 2018, a lieutenant with the South Carolina Law Enforcement Division (SLED) located Cunningham, who was wanted for outstanding warrants, at a hotel in North Myrtle Beach, South Carolina. Cunningham was detained and placed in handcuffs, and the lieutenant noted that Cunningham continually tried to roll onto his left side. The lieutenant observed a heavy object in a pocket of the vest Cunningham was wearing. Cunningham claimed he did not know whether the object was a firearm and that he had borrowed the vest from a friend. A search revealed a Jiminez .380 caliber handgun, loaded with six rounds of ammunition. Federal law prohibits Cunningham from possessing firearms because he has prior state convictions for grand larceny, burglary, and armed robbery.
The charges against Cunningham were the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), SLED, and the North Myrtle Beach Police Department. This case was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001 that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Turning the tide of rising violent crime in America is a top priority for the Department of Justice, which has reinstituted PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy. Assistant United States Attorney Lauren Hummel of the Florence office prosecuted the case.
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Georgia man admits to distributing methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Spencer Lee Sarver, of Springfield, Georgia, has admitted to distributing methamphetamine, United States Attorney Bill Powell announced.
Sarver, age 63, pled guilty to one count of “Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine.” Sarver admitted to distributing methamphetamine from January 2017 to September 2018 in Wetzel County.
Sarver faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Monroe County, Ohio Sheriff’s Office; and the New Martinsville Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Four Additional People Charged in Conspiracy to Distribute Heroin and Fentanyl from Bronx, New York, Drug MillRead the Press Release
NEWARK, N.J. – Four men have been charged after they were arrested in New York for their participation in a conspiracy to distribute heroin and fentanyl, U.S. Attorney Craig Carpenito announced today.
Eddy Urena Rodriguez, 34, Daury Contreras Ulerio, 34, Reimon Genao Rosario, 22, and Francisco Mercedes Gil, 30, all of Bronx, New York, are charged by complaint with one count of conspiracy to possess with intent to distribute approximately 100 grams or more of heroin and fentanyl. Rodriguez appeared today before U.S. Magistrate Judge Mark Falk and was detained. Ulerio, Rosario, and Gil all appeared last week before U.S. Magistrate Judge Steven C. Mannion and were detained.
Previously, three other individuals – Jhan Carlos Capellan Maldonado, 30, Jose Antonio Vasquez Pena, a/k/a “Tono,” 46, and Dilson Vasquez Genao, 22 – were arrested and detained after appearing before U.S. Magistrate Judges Joseph A. Dickson and Michael A. Hammer.
According to documents filed in this case and statements made in court:
In early February 2019, law enforcement officers learned Maldonado used an apartment in the Bronx to store, mix, and package heroin and fentanyl in quantities for distribution. Pena lived at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed five workers at a time – including Rodriguez, Ulerio, Rosario, Gil, and Genao – to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. The plastic shopping bags contained materials to package heroin and fentanyl.
Genoa went back inside the building and was followed by law enforcement officers, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window in the bedroom, and all but one were apprehended and arrested by law enforcement officers waiting outside.
Each defendant faces a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine.
U.S. Attorney Craig Carpenito credited the Homeland Security Investigations (HSI)’s New Jersey Division, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Opioid Abuse Prevention and Enforcement Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former UAW Vice President Pleads Guilty to Conspiracy with Fiat Chrysler ExecutivesRead the Press Release
Norwood Jewell, the former Vice President of the UAW and the highest official in the UAW’s Chrysler Department, pleaded guilty today to conspiring with other UAW officials and Fiat Chrysler executives to make illegal payments to union officials announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Acting Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Timothy R. Slater, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Norwood Jewell, 61, of Swartz Creek, Michigan pleaded guilty to conspiring to violate the Labor Management Relations Act by accepting, arranging for, and approving illegal payments from Fiat Chrysler executives to high-level UAW officials from 2014 through 2016. After the now-deceased UAW Vice President General Holiefield retired in 2014, Jewell and other UAW officials began running the UAW’s Chrysler Department, responsible for dealing with executives at Fiat Chrysler. During the plea hearing, Jewell admitted to participating in a conspiracy that had existed at least from 2009 through 2016 whereby Fiat Chrysler executives conspired with one another, with Fiat Chrysler, with UAW officials, and with the UAW to funnel money and things of value worth millions of dollars from Fiat Chrysler to UAW officials and the UAW. Fiat Chrysler and the UAW, and their executives and officials, used the joint UAW-Chrysler National Training Center in order to conceal and make the payoffs from Fiat Chrysler to senior UAW officials.
The things of value funneled to UAW officials from Fiat Chrysler included personal travel, golf resort fees, lavish meals and parties, theme park tickets at Disney World and Universal Studios, limousine services, designer clothing, designer shoes, golf equipment, electronics, and custom-labeled bottles of wine. Jewell admitted that in 2014 he had knowingly joined a “culture of corruption” and a conspiracy at the UAW that had been in place since 2009, whereby Fiat Chrysler illegally paid for lavish entertainment and other things of value for UAW officials.
Jewell himself admitted to approving tens of thousands of dollars in extravagant meals for high-level UAW officials paid for by Fiat Chrysler at Detroit’s London Chop House and at multiple high-end steakhouses in Palm Springs, California in 2015 and 2016. For example, in July 2015, Fiat Chrysler paid $8,494.37 so that the UAW’s National Negotiating Committee, including Jewell, could dine at the London Chop House right before collective bargaining negotiations with Fiat Chrysler began. After the UAW and Fiat Chrysler negotiated a new collective bargaining agreement in September 2015, Fiat Chrysler paid $6,912.81 for the UAW’s negotiators, including Jewell, to again dine at the London Chop House in order to celebrate. The agreement that had been negotiated was then voted down by the UAW’s membership. Jewell and other UAW officials also accepted almost ten thousand dollars from Fiat Chrysler through the National Training Center in order to pay for multiple rounds of golf at the Indian Canyons Golf Resort in Palm Springs for senior UAW officials.
As part of his plea, Jewell stated that other Fiat Chrysler executives continued the conspiracy to make illegal payoffs to senior UAW officials up through the end of 2016 after co-defendants and Fiat Chrysler executives Alphons Iacobelli and Jerome Durden left the company in June 2015.
Jewell is the eighth defendant to plead guilty in connection with the ongoing criminal investigation into illegal payoffs involving UAW officials and FCA executives. The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), and Nancy A. Johnson (12 months in prison), and Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison).
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“Today’s conviction of a UAW Vice President demonstrates that our efforts to clean up labor corruption will not rest until the 400,000 UAW members and their families are represented by union officials of honor and integrity,” said United States Attorney Matthew Schneider. “Labor leaders must always put the best interests of the hard working men and women of the union over their own personal interests.”
“Mr. Jewell chose to forsake his obligation to serve the rank and file of the UAW when he accepted and authorized his subordinates to spend in excess of $40,000 in FCA funds on lavish meals, liquor, and entertainment. We will continue to work with our law enforcement partners to investigate those who facilitate illegal payments to union officials entrusted to negotiate on behalf of union members,” said Irene Lindow, Acting Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
"Mr. Jewell’s criminal actions were an effort to enrich himself and his colleagues at the expense of dues-paying UAW members and denied those same hard-working men and women the assurance that union leadership was bargaining in their best interests," said SAC Slater. "The FBI will continue to work alongside our federal partners to expose these conspiracies and ensure those who violate the law are held accountable.”
“Mr. Jewell callously conspired with other UAW officials and Fiat Chrysler executives to accept illegal payments from funds meant for the hard working rank and file members of the UAW. IRS-CI is prepared to investigate any disregard of fiduciary responsibilities entrusted to corporate and union officials who aim to selfishly enrich their own pockets.”
“Protecting members against corruption perpetrated by their union leaders is critical to the mission of OLMS,” said Thomas Murray, District Director of the Office of Labor-Management Standards (OLMS) Detroit-Milwaukee District Office. “We will continue to work cooperatively with our law enforcement partners to ensure that anyone who abuses their union position for personal financial gain will be brought to justice.”
The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Erin Shaw, and Steven Cares.
Former Salesman of Porsche Dealership Charged in $2.2 Million Fraud Scheme Involving Non-Existent Rare Porsche ModelsRead the Press Release
A former salesman for Copans Motorsports d/b/a Champion Porsche was charged by criminal complaint for his participation in a scheme in which he entered into bogus sales orders for the sale of exotic Porsche models to over 30 customers throughout the United States.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Gregory Tony, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
A criminal complaint charged Shiraaz Sookralli, 44, of Plantation, with mail fraud, wire fraud, conspiracy to commit mail and wire fraud, and money laundering. Sookralli made his initial appearance earlier today, and is scheduled to appear before U.S. Magistrate Judge Patrick M. Hunt on Friday, April 5, at 10:00 a.m. for his pretrial detention hearing.
According to the criminal complaint, in 2017, Sookralli opened a shell corporation with a name bearing a close resemblance to both Champion Porsche and another corporate affiliate of the dealership. After forming the shell corporation, Sookralli opened a bank account in the shell corporation’s name. Sookralli then entered into bogus sales orders with customers for the unauthorized sales of non-existent future exotic Porsche models. The majority of the vehicles were rare, highly sought-after, Carrera 911 models. The defendant required deposits from his victims in the form of, wire transfers, bank checks, and cash that he later deposited into his shell company’s bank account. The buyers relied on Sookralli’s longtime employment at Champion Porsche, title as “Vice President of Marketing,” representations that he or she would receive a yet-to-be-built Porsche vehicle, and the seemingly legitimate bank account for wiring deposits to Sookralli. Champion Porsche did not authorize Sookralli to conduct these transactions.
The complaint also alleges that Sookralli received over $2,200,000 from approximately 30 customers who never received the Porsche vehicles, as agreed. As set forth in the complaint, the defendant used the money for extravagant expenditures including luxury vehicles, jewelry, nightclubs, and restaurants. Sookralli also funneled amounts in excess of $10,000 at a time from his shell company account to bank accounts he controlled.
After Champion Porsche uncovered Sookralli’s fraud scheme, it contacted his victims and began its cooperation with the criminal investigation.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, IRS-CI, and BSO in this matter. The case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
A criminal complaint is merely an allegation and every defendant is presumed innocent until proven guilty.
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 on http://pacer.flsd.uscourts.gov.
Former Congressional Staffer Sentenced to Prison for Extensive Fraud and Election Crimes SchemeRead the Press Release
HOUSTON - A former congressional staffer was sentenced today for participating in a multi-year scheme to defraud charitable donors of hundreds of thousands of dollars. He also secretly funneled the proceeds to pay for personal expenses and illegally finance campaigns for federal office.
U.S. Attorney Ryan K. Patrick made the announcement along with Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Assistant Director in Charge Nancy McNamara of FBI’s Washington Field Office and Acting Special Agent in Charge Sarah Kull of IRS - Criminal Investigation (CI) Houston Field Office.
Jason T. Posey, 48, of Tupelo, Mississippi, pleaded guilty Oct. 11, 2017, to one count of mail fraud, one count of wire fraud and one count of money laundering. Today, Chief U.S. District Judge Lee H. Rosenthal of the Southern District of Texas sentenced Posey to 18 months in prison to be immediately followed by three years of supervised release. Posey was also ordered to pay $564,718.65 in restitution and $156,855.29 in forfeiture.
As part of his plea, Posey admitted he participated in a scheme that former U.S. Representative Stephen E. Stockman, 62, led. A federal jury in Houston convicted Stockman April 12, 2018, of 23 counts of mail fraud, wire fraud, conspiracy to make conduit contributions and false statements to the Federal Election Commission (FEC), making false statements to the FEC, making excessive coordinated campaign contributions, money laundering and filing a false tax return. Another of Stockman’s former congressional staffers, Thomas Dodd, 40, of Houston, pleaded guilty March 20, 2017, to one count of conspiracy to commit mail and wire fraud and one count of conspiracy to make conduit contributions and false statements. On Dec. 12, 2018, Judge Rosenthal sentenced Dodd to serve 18 months in prison followed by three years of supervised release and ordered him to pay $800,000 in restitution,
According to Posey’s admissions in connection with his guilty plea, from January 2013 to February 2014, he assisted Stockman in fraudulently soliciting $800,571.65 in donations from charitable organizations and the individuals who ran those organizations based on false pretenses. He then used a series of sham nonprofit organizations and dozens of bank accounts to launder the money before he spent it on a variety of personal and campaign expenses.
Specifically, Posey admitted that shortly after Stockman took office as a member of the U.S. House of Representatives in 2013, Stockman and Dodd used the name of one sham nonprofit entity, Life Without Limits, to solicit and receive a $350,000 charitable donation. The money was to be used to create an educational center called the Freedom House. Stockman, Dodd and Posey instead used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, and payments for hundreds of thousands of robocalls and mailings promoting Stockman’s candidacy for U.S. Senate in early 2014.
In addition, Posey admitted that, in connection with Stockman’s Senate campaign, Stockman and Posey used another sham nonprofit entity called Center for the American Future to secure a $450,571.65 donation. They used that money to fund a purportedly legitimate independent expenditure promoting Stockman’s candidacy. Posey admitted Stockman secretly controlled the purportedly independent expenditure and directed his campaign and Posey to file false affidavits with the FEC covering up Stockman’s involvement.
In addition, Posey admitted that during the early stages of the investigation, Stockman directed Posey to flee to Cairo, Egypt, for nearly three years so law enforcement could not question him.
The FBI and IRS-CI conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case along with Deputy Chief Robert J. Heberle and Trial Attorney Ryan J. Ellersick of the Criminal Division’s Public Integrity Section.