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9 May 2019
Memphis Man Convicted of Attempted Robbery Faces a Mandatory Minimum 10 Years in Federal PrisonRead the Press Release
Memphis, TN – After a four-day jury trial, Lamar Clancy,26, was found guilty on a two-count indictment for attempting to rob the Boost Mobile Store at 4684 Millbranch. U.S. Attorney D. Michael Dunavant announced the conviction today.
According to information presented at trial, Clancy and another man entered the store wearing masks and pointing handguns at store employees. Two of the store employees drew their firearms to defend against the shots fired by Clancy and his accomplice. After one of the unarmed employees was shot, Clancy, who himself was shot, retreated from the store with the other robber. Clancy was dropped off at the Methodist South emergency room minutes after the attempted robbery and apprehended by the Memphis Police.
Clancy is scheduled to be sentenced on August 22, 2019 before U. S. District Court Judge John T. Fowlkes Jr., where he faces a mandatory minimum consecutive sentence of 10 years and up to life imprisonment for discharging a firearm during a crime of violence.
U.S. Attorney D. Michael Dunavant said, "Violent crimes must be met with significant consequences in order to incapacitate dangerous offenders, deter future violence, achieve justice for victims and the community, and uphold the rule of law. This guilty verdict demonstrates our commitment and resolve to protect the public by making violent offenders pay for their crimes."
This case was investigated by FBI Safe Streets Task Force Agents.
The United States Attorney’s Office, Western District of Tennessee prosecuted this case on behalf of the government.
Member of sophisticated China-based hacking group indictedRead the Press Release
WASHINGTON – A federal grand jury returned an indictment unsealed today in Indianapolis, Indiana, charging a Chinese national as part of an extremely sophisticated hacking group operating in China and targeting large businesses in the United States, including a computer intrusion and data breach of Indianapolis-based health insurer Anthem Inc. (Anthem).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Josh Minkler for the Southern District of Indiana, Assistant Director Matt Gorham of the FBI’s Cyber Division and Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Field office made the announcement.
The four-count indictment alleges that Fujie Wang (王 福 杰 in Chinese Hanzi), 32, and other members of the hacking group, including another individual charged as John Doe, conducted a campaign of intrusions into U.S.-based computer systems. The indictment alleges that the defendants gained entry to the computer systems of Anthem and three other U.S. businesses, identified in the indictment as Victim Business 1, Victim Business 2 and Victim Business 3. As part of this international computer hacking scheme, the indictment alleges that beginning in February 2014, the defendants used sophisticated techniques to hack into the computer networks of the victim businesses without authorization, according to the indictment. They then installed malware and tools on the compromised computer systems to further compromise the computer networks of the victim businesses, after which they identified data of interest on the compromised computers, including personally identifiable information (PII) and confidential business information, the indictment alleges.
“The allegations in the indictment unsealed today outline the activities of a brazen China-based computer hacking group that committed one of the worst data breaches in history,” said Assistant Attorney General Benczkowski. “These defendants allegedly attacked U.S. businesses operating in four distinct industry sectors, and violated the privacy of over 78 million people by stealing their PII. The Department of Justice and our law enforcement partners are committed to protecting PII, and will aggressively prosecute perpetrators of hacking schemes like this, wherever they occur.”
“The cyber attack of Anthem not only caused harm to Anthem, but also impacted tens of millions of Americans,” said U.S. Attorney Minkler. “This wanton violation of privacy will not stand, and we are committed to bringing those responsible to justice. I would also like to thank Anthem for its timely and substantial cooperation with our investigation.”
“This case is significant not only because it showcases the FBI’s cyber investigative capabilities, but also because it highlights the importance of FBI and private industry relationships,” said Assistant Director Matt Gorham. “Because the victim companies promptly notified the FBI of malicious cyber activity, we were able to successfully investigate and identify the perpetrators of this large-scale, highly sophisticated scheme. The FBI is committed to investigating cyber-attacks that compromise American industry and the American people. As we did in this case, we will work side by side with victim companies to ensure justice is served.”
"Anthem's cooperation and openness in working with the FBI on the investigation of this sophisticated cyber-attack was imperative in allowing for the identification of these individuals. This also speaks to the strong partnerships the FBI has with the private sector, as well as the tenacity and global reach of the Bureau," said Special Agent in Charge Grant Mendenhall. "It should also be noted that the speed with which Anthem initially notified the FBI of the intrusion on their networks was also a key factor in being able to determine who was responsible for the breach and should serve as an example to other organizations that might find themselves in a similar situation."
The indictment further alleges that the defendants then collected files and other information from the compromised computers and then stole this data. As part of the computer intrusion and data breach of Anthem, the defendants identified and ultimately stole data concerning approximately 78.8 million persons from Anthem’s computer network, including names, health identification numbers, dates of birth, Social Security numbers, addresses, telephone numbers, email addresses, employment information and income data, according to the indictment.
Wang and Doe are charged with one count of conspiracy to commit fraud and related activity in relation to computers and identity theft, one count of conspiracy to commit wire fraud, and two substantive counts of intentional damage to a protected computer.
According to the indictment, the defendants used extremely sophisticated techniques to hack into the computer networks of the victim businesses. These techniques included the sending of specially-tailored “spearfishing” emails with embedded hyperlinks to employees of the victim businesses. After a user accessed the hyperlink, a file was downloaded which, when executed, deployed malware that would compromise the user’s computer system by, in pertinent part, installing a tool known as a backdoor that would provide remote access to that computer system through a server controlled by the defendants.
The defendants sometimes patiently waited months before taking further action, eventually engaging in reconnaissance by searching the network for data of interest, according to the indictment. This data included PII and confidential business information. The indictment alleges that the defendants accessed the computer network of Anthem without authorization for the purpose of conducting reconnaissance on Anthem’s enterprise data warehouse, a system that stores a large amount of PII, on multiple occasions in October and November 2014.
The indictment further alleges that once the data of interest had been identified and located, the defendants then collected the relevant files and other information from the compromised computers using software tools. The defendants then allegedly stole the data of interest by placing it into encrypted archive files and then sending it through multiple computers to destinations in China. The indictment alleges that on multiple occasions in January 2015, the defendants accessed the computer network of Anthem, accessed Anthem’s enterprise data warehouse, and transferred encrypted archive files containing PII from Anthem’s enterprise data warehouse from the United States to China.
Finally, the defendants allegedly then deleted the encrypted archive files from the computer networks of the victim businesses, in an attempt to avoid detection. In late January 2015, the defendants deleted certain archive files containing PII that they had previously transferred from Anthem’s enterprise data warehouse.
Defendant Wang is specifically alleged to have controlled two domain names connected to the criminal activity. According to the indictment, one of these domain names was associated with a backdoor used in the intrusion victimizing Victim Business 1, and the other was associated by Wang with a server used to create an email account used to conduct spearfishing attacks against employees of Victim Business 3.
This case was investigated by the FBI’s Indianapolis Field Office. Senior Counsel William A. Hall, Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney and Deputy Chief of the General Crimes Unit Steven D. DeBrota of the Southern District of Indiana are prosecuting the case. Significant assistance was provided by the Justice Department’s National Security Division and the Criminal Division’s Office of International Affairs.
Charges contained in an indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Member of Sophisticated China-Based Hacking Group Indicted for Series of Computer Intrusions, Including 2015 Data Breach of Health Insurer Anthem Inc. Affecting over 78 Million PeopleRead the Press Release
A federal grand jury returned an indictment unsealed today in Indianapolis, Indiana, charging a Chinese national as part of an extremely sophisticated hacking group operating in China and targeting large businesses in the United States, including a computer intrusion and data breach of Indianapolis-based health insurer Anthem Inc. (Anthem).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Josh Minkler for the Southern District of Indiana, Assistant Director Matt Gorham of the FBI’s Cyber Division and Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Field office made the announcement.
The four-count indictment alleges that Fujie Wang (王 福 杰 in Chinese Hanzi), 32, and other members of the hacking group, including another individual charged as John Doe, conducted a campaign of intrusions into U.S.-based computer systems. The indictment alleges that the defendants gained entry to the computer systems of Anthem and three other U.S. businesses, identified in the indictment as Victim Business 1, Victim Business 2 and Victim Business 3. As part of this international computer hacking scheme, the indictment alleges that beginning in February 2014, the defendants used sophisticated techniques to hack into the computer networks of the victim businesses without authorization, according to the indictment. They then installed malware and tools on the compromised computer systems to further compromise the computer networks of the victim businesses, after which they identified data of interest on the compromised computers, including personally identifiable information (PII) and confidential business information, the indictment alleges.
“The allegations in the indictment unsealed today outline the activities of a brazen China-based computer hacking group that committed one of the worst data breaches in history,” said Assistant Attorney General Benczkowski. “These defendants allegedly attacked U.S. businesses operating in four distinct industry sectors, and violated the privacy of over 78 million people by stealing their PII. The Department of Justice and our law enforcement partners are committed to protecting PII, and will aggressively prosecute perpetrators of hacking schemes like this, wherever they occur.”
“The cyber attack of Anthem not only caused harm to Anthem, but also impacted tens of millions of Americans,” said U.S. Attorney Minkler. “This wanton violation of privacy will not stand, and we are committed to bringing those responsible to justice. I would also like to thank Anthem for its timely and substantial cooperation with our investigation.”
“This case is significant not only because it showcases the FBI’s cyber investigative capabilities, but also because it highlights the importance of FBI and private industry relationships,” said Assistant Director Matt Gorham. “Because the victim companies promptly notified the FBI of malicious cyber activity, we were able to successfully investigate and identify the perpetrators of this large-scale, highly sophisticated scheme. The FBI is committed to investigating cyber-attacks that compromise American industry and the American people. As we did in this case, we will work side by side with victim companies to ensure justice is served.”
"Anthem's cooperation and openness in working with the FBI on the investigation of this sophisticated cyber-attack was imperative in allowing for the identification of these individuals. This also speaks to the strong partnerships the FBI has with the private sector, as well as the tenacity and global reach of the Bureau," said Special Agent in Charge Grant Mendenhall. "It should also be noted that the speed with which Anthem initially notified the FBI of the intrusion on their networks was also a key factor in being able to determine who was responsible for the breach and should serve as an example to other organizations that might find themselves in a similar situation."
The indictment further alleges that the defendants then collected files and other information from the compromised computers and then stole this data. As part of the computer intrusion and data breach of Anthem, the defendants identified and ultimately stole data concerning approximately 78.8 million persons from Anthem’s computer network, including names, health identification numbers, dates of birth, Social Security numbers, addresses, telephone numbers, email addresses, employment information and income data, according to the indictment.
Wang and Doe are charged with one count of conspiracy to commit fraud and related activity in relation to computers and identity theft, one count of conspiracy to commit wire fraud, and two substantive counts of intentional damage to a protected computer.
According to the indictment, the defendants used extremely sophisticated techniques to hack into the computer networks of the victim businesses. These techniques included the sending of specially-tailored “spearfishing” emails with embedded hyperlinks to employees of the victim businesses. After a user accessed the hyperlink, a file was downloaded which, when executed, deployed malware that would compromise the user’s computer system by, in pertinent part, installing a tool known as a backdoor that would provide remote access to that computer system through a server controlled by the defendants.
The defendants sometimes patiently waited months before taking further action, eventually engaging in reconnaissance by searching the network for data of interest, according to the indictment. This data included PII and confidential business information. The indictment alleges that the defendants accessed the computer network of Anthem without authorization for the purpose of conducting reconnaissance on Anthem’s enterprise data warehouse, a system that stores a large amount of PII, on multiple occasions in October and November 2014.
The indictment further alleges that once the data of interest had been identified and located, the defendants then collected the relevant files and other information from the compromised computers using software tools. The defendants then allegedly stole the data of interest by placing it into encrypted archive files and then sending it through multiple computers to destinations in China. The indictment alleges that on multiple occasions in January 2015, the defendants accessed the computer network of Anthem, accessed Anthem’s enterprise data warehouse, and transferred encrypted archive files containing PII from Anthem’s enterprise data warehouse from the United States to China.
Finally, the defendants allegedly then deleted the encrypted archive files from the computer networks of the victim businesses, in an attempt to avoid detection. In late January 2015, the defendants deleted certain archive files containing PII that they had previously transferred from Anthem’s enterprise data warehouse.
Defendant Wang is specifically alleged to have controlled two domain names connected to the criminal activity. According to the indictment, one of these domain names was associated with a backdoor used in the intrusion victimizing Victim Business 1, and the other was associated by Wang with a server used to create an email account used to conduct spearfishing attacks against employees of Victim Business 3.
This case was investigated by the FBI’s Indianapolis Field Office. Senior Counsel William A. Hall, Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney and Deputy Chief of the General Crimes Unit Steven D. DeBrota of the Southern District of Indiana are prosecuting the case. Significant assistance was provided by the Justice Department’s National Security Division and the Criminal Division’s Office of International Affairs.
Charges contained in an indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Member of Nine Trey Gangsta Bloods Pleads Guilty to April 21, 2018, Shooting Inside the Barclays CenterRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that FUGUAN LOVICK, a/k/a “Fu Banga,” pled guilty today in Manhattan federal court to a shooting that he committed inside the Barclays Center on April 21, 2018, as part of his participation in the Nine Trey Gangsta Bloods (“Nine Trey”). U.S. District Judge Paul A. Engelmayer accepted the defendant’s guilty plea.
U.S. Attorney Geoffrey S. Berman said: “Today, Fuguan Lovick admitted to a brazen and dangerous act of violence. While inside the Barclays Center with Tekashi 6ix 9ine and other Nine Trey gang members, Lovick fired a gun to intimidate rival gang members. We continue our daily work with our law enforcement partners to keep our communities safe and to vigorously investigate acts of violence committed by gang members.”
As alleged in the Indictment and statements made in open court:
Nine Trey was a criminal enterprise involved in committing numerous acts of violence, including shootings, robberies, and assaults in and around Manhattan and Brooklyn. Members and associates of Nine Trey engaged in violence to retaliate against rival gangs, to promote the standing and reputation of Nine Trey, and to protect the gang’s narcotics business. As admitted in open court today, on April 21, 2018, LOVICK discharged a firearm inside the Barclays Center in Brooklyn in order to scare rival gang members.
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LOVICK, 42, of Brooklyn, New York, pled guilty to assault with a dangerous weapon in aid of racketeering, which carries a maximum sentence of 20 years in prison, and to brandishing a firearm in furtherance of a crime of violence, which carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life. LOVICK is scheduled to be sentenced before Judge Engelmayer on August 19, 2019.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by Judge Engelmayer.
Mr. Berman praised the outstanding investigative work of the New York City Police Department, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. He also thanked the Kings County District Attorney’s Office for its assistance in the investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Michael Longyear, Jacob Warren, Jonathan Rebold, and Sebastian Swett are in charge of the prosecution.
Man Who Assaulted Girlfriend Sent Back to Prison for Two More YearsRead the Press Release
A man who assaulted his pregnant girlfriend while on federal supervision was sentenced on May 8, 2019, to two years in federal prison.
Codie Lee Allen Fisher, age 29, from Cedar Rapids, Iowa, received the prison term after a court found that he violated the terms of his supervised release by using a controlled substance and alcohol, failing to comply with remote alcohol testing, and committing a new law violation, specifically Domestic Abuse Assault Impeding Air Flow, in violation of Iowa Code § 708.2A(2)(b).
Evidence at his revocation hearing showed Fisher, after consuming alcohol, got into a verbal argument with his pregnant girlfriend. The assault turned physical when Fisher placed his hands around her neck and throat and choked her multiple times. The victim reported almost blacking out twice during the assault. When police responded to the residence, they observed Fisher yelling at the victim, who was backed into a corner. At the time of the assault Fisher was serving a term of federal supervised release after pleading guilty to making a false statement during the purchase of a firearm in 2016. Fisher was previously sentenced to a 21-month term of imprisonment and ordered to serve a three-year term of supervised release following his release from Bureau of Prisons custody.
Fisher was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Fisher’s supervised release was revoked and he was ordered to serve an additional 24-month term of imprisonment. A no-contact order was also entered preventing Fisher from having any contact with the victim. Fisher must also serve an additional two-year term of supervised release after the prison term. There is no parole in the federal system.
Fisher is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the United States Probation Office for the Northern District of Iowa and the Marion Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-33.
Follow us on Twitter @USAO_NDIA.
Man Pleads Guilty to Drug Distribution that Caused Overdose DeathRead the Press Release
ALEXANDRIA, Va. – An Virginia man pleaded guilty today to distribution of a drug that resulted in the death of a Leesburg woman.
According to court documents, Michael Napier, 35, of Aldie, distributed 1,4-butanadiol, an analogue of Gamma Hydroxybutyric Acid (GHB), a Schedule I controlled substance, which resulted in the death of A.H in June 2015. A medical examiner’s autopsy report for A.H. listed the cause of death as GHB Poisoning, and toxicology analysis revealed GHB was present in the victim’s blood and 1,4-butanadiol in A.H.’s urine. Three days after A.H.’s death, Napier was arrested in Loudoun County for driving under the influence of drugs, where law enforcement recovered a 500ml bottle of 1,4-butanadiol. Further investigation revealed Napier purchased a 1 liter bottle of 1,4-butanadiol online in May 2015 and showed text messages between Napier and the victim discussing drug distribution the eve of her death.
Napier pleaded guilty to distribution of 1,4-butanadiol, an GHB analogue, and faces a maximum penalty of 20 years in prison when sentenced on August 23. 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, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Michael L. Chapman, Loudoun County Sheriff, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorney Michael P. Ben’Ary and Special Assistant U.S. Attorney Lena Munasifi are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Safe Streets/HIDTA Task Force- Northern Virginia which is composed of Agents and Detectives from Fairfax County, PWC Police, Loudoun County Sheriff’s Office, Leesburg Police, Vienna Police, Alexandria City Police and Herndon Police.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-143.
Local Woman Sentenced to Prison for Fraudulently Obtaining Federal FundsRead the Press Release
DAYTON – Cynthia A. Faulkner, 34, of Dayton, Ohio, was sentenced to 21 months in prison for fraudulently obtaining food card benefits and submitting false income tax documents.
Faulkner pleaded guilty in January to three counts of making a false document, two counts of aiding in the filing of a false income tax return and one count of misprision of a felony.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, William Cheung, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, Anthony V. Mohatt, Special Agent in Charge, U.S. Department of Agriculture (USDA) Office of Inspector General Investigations, Midwest Region, and Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development (HUD) Office of Inspector General announced the sentence imposed yesterday by U.S. District Judge Thomas M. Rose.
According to court documents, Faulkner made false statements on her April 2013 application to receive SNAP (Supplemental Nutrition Assistance Program) benefits. As part of her request to reapply for cash and food assistance, Faulkner misrepresented the cost of her rental residence in Mason, Ohio, for which she paid more than $2,000 per month.
On a similar subsequent application in 2014, Faulkner falsely reported her and her husband’s total gross income as approximately $36,000. In fact, their total gross income for that period was nearly $91,000.
Faulkner also aided in the filing of materially false income tax returns by underreporting business receipts by hundreds of thousands of dollars over tax years 2011 and 2012.
Further, Faulkner had first-hand knowledge of a bank fraud scheme and failed to report it to authorities. That scheme involved Capital Group Properties and Consultants Corp of Mason and Cincinnati, Ohio, and National Appraisal Sources, LLC of Cincinnati, Ohio, which were both co-owned by Faulkner. The scheme included receiving payments for fraudulent real estate appraisals.
During her federal case, Faulkner submitted false documents to the Court in hopes of obtaining a continuance for a court hearing. In these bogus documents, she informed the Court she had received a hysterectomy and provided a false patient medical discharge summary from the Tampa General Hospital in Tampa, Fla. In fact, Faulkner underwent no such surgery.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, USDA OIG and HUD OIG, as well as Assistant United States Attorney Dwight Keller, who is prosecuting the case.
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Liberation Way Doctor Pleads Guilty to Health Care FraudRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Dr. Domenick Braccia, 57, of Perkasie, PA entered a plea of guilty before Judge Wendy Beetlestone on one count of conspiracy to commit health care fraud. The charges against the defendant stem from federal and state investigations into an elaborate insurance fraud scheme involving a Bucks County-based addiction treatment center, Liberation Way.
Dr. Braccia served as the Medical Director of Liberation Way, and, as the sole doctor, was the head of medical treatment at all three of its facilities. As such, he was tasked with overseeing the care of all the patients seeking addiction treatment, ordering all medically necessary tests, evaluating the results of all medical tests and incorporating their results into any treatment plan, prescribing medications, and overseeing the staff who were tasked with other non-medical therapy and care of patients. However, Braccia did not provide the amount of medical care that was billed to insurance companies in his name, and he never even stepped foot in one of the three treatment centers that billed in his name.
Instead, Braccia signed blank forms and patient orders, averred to the medical necessity of testing for patients whom he never saw, prescribed for patients he did not see, and signed blank prescription forms. As a consequence, insurance companies lost millions of dollars paying for care that was not provided by Braccia, and patients did not receive the individualized medical care they needed.
State and federal criminal charges were announced in March 2019 against eleven people and nine businesses in connection with this health care fraud case. The investigation revealed an array of health care fraud schemes committed by individuals associated with Liberation Way, which is based in Yardley, Bucks County and has two other locations in Bala Cynwyd and Fort Washington, Montgomery County. These schemes included Braccia’s over-billing scheme as well as an elaborate kick-back scheme involving thousands of medically-unnecessary urine tests which were sent to the Florida-based laboratories for analysis.
“This prosecution and today’s guilty plea should send a clear message to those seeking to build their fortunes on fraud and the despair of individuals battling addiction: health care fraud and the opioid epidemic are major priorities for the United States Attorney’s Office, and your illegal actions will be uncovered and prosecuted,” said First Assistant United States Attorney Jennifer Arbittier Williams.
“This doctor was responsible for overseeing the medical care of people suffering from opioid addiction, and instead he conspired to commit fraud by signing blank prescription forms and attesting to treatment for patients he did not see,” said Pennsylvania Attorney General Josh Shapiro. “He did these acts to help perpetrate a massive insurance fraud that lined the pockets of Liberation Way’s founders and co-conspirators with millions of dollars. I am grateful for our partners in the U.S. Attorney’s Office, the FBI, and other agencies in Pennsylvania and Florida for their hard work in bringing this defendant to justice.”
“At Liberation Way, medical practices were shoddy and substantive treatment minimal,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Dr. Braccia abrogated his professional ethics and responsibilities in order to line his pockets and is now being held accountable for his actions. The FBI will continue to make health care fraud investigations a priority, to the benefit of both patients and taxpayers.”
“This case demonstrates the commitment of the OPM OIG, the Department of Justice, and our law enforcement partners to ensuring that federal health care programs, including the Federal Employees Health Benefits Program, are protected from fraud and abuse,” said Thomas W. South, Deputy Assistant Inspector General for Investigations, U.S. Office of Personnel Management. “I am immensely proud of the work our office has done to not only safeguard taxpayer dollars, but also protect the health and wellbeing of federal employees, annuitants, and their families.”
The case was investigated by the Federal Bureau of Investigation, Department of Health and Human Services, the Office of Personnel Management, and the Department of Labor, and is being prosecuted by Assistant United States Attorney Nancy Beam Winter.
Leader of Nine Trey Gangsters Sentenced to Life in PrisonRead the Press Release
A Norfolk, Virginia, man was sentenced today to three consecutive life terms plus an additional 40 years in prison for his leadership role in a racketeering conspiracy, multiple murders, multiple attempted murders and various drug and gun crimes, all as part of his leadership of the Nine Trey Gangsters Bloods gang.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia; Special Agent in Charge Martin Culbreth of the FBI’s Norfolk Field Office; Interim Chief Angela Greene of Portsmouth Police; Chief Larry D. Boone of Norfolk Police; Chief James A. Cervera of Virginia Beach Police; Chief Colonel K.L. Wright of Chesapeake Police and Chief Thomas E. Bennett of Suffolk Police made the announcement.
According to evidence introduced at trial, Antonio Simmons, aka Murdock, 41, was a high-ranking leader of a group of Portsmouth and Norfolk-based members of the Nine Trey Gangsters, a Bloods gang affiliated with the United Blood Nation. Simmons and five other members and associates of the gang were charged for their roles in a spate of extreme violence in December 2015 that ended with five people dead and four others shot during seven separate shootings that crossed nearly every city in South Hampton Roads. Simmons was sentenced by Chief U.S. District Judge Mark S. Davis.
Nearly all of the victims in the case were unaffiliated with the Nine Trey Gangsters or any other gang. They included two mothers of young children and one grandmother who was murdered, along with her boyfriend, because gang members believed she was cooperating with the police in an investigation of another shooting carried out by a Nine Trey member just weeks before.
Simmons was found guilty of the two murders that occurred during attempted robberies he directed his men to commit. By the end of December, two of the gang’s primary shooters, Anthony Foye, aka Ace, and Nathaniel Mitchell, aka Savage, were in a competition to see who could gain a reputation within the gang for shooting the most people. To even the score the men were keeping, Mitchell gunned down a woman walking home from her job at the Norfolk International Airport four days before Christmas. The evidence at trial showed that Simmons bragged about the shootings carried out by Foye and Mitchell.
In late 2015, Simmons ordered Foye, Mitchell and co-conspirators Alvaughn Davis, aka LB, and Malek Lassiter, aka Leeko, to murder high-ranking members of a rival Hampton Roads-based Nine Trey Gangsters “line.” When the men were unable to find two of their targets, they drove to the house of a third man they planned to shoot. When the woman who opened the door told them the man was not at home, they shot her six times; her life was saved by the quick response of local EMTs and the Portsmouth Police Department. While the men fled from the scene, they fired several rounds at witnesses looking out of their windows. Foye and Mitchell were arrested after robbing a gas station store later the same night.
Simmons, Mitchell and Lassiter were convicted on all counts after a seven-week jury trial. Foye and Davis pleaded guilty before trial, and another associate of the gang, Donte Brehon, pleaded guilty in a separate case. Simmons was the last defendant to be sentenced. The men charged, and the sentences they received, are as follows:
- Antonio Lee Simmons, aka Murdock and Doc, 41, of Norfolk, Virginia; Racketeering conspiracy; Heroin distribution conspiracy; Two counts of murder in Aid of Racketeering; Four counts of attempted murder in aid of racketeering; Three counts of assault with a dangerous weapon in aid of racketeering; Two counts of use of a firearm resulting in death; Four counts of use of a firearm during a crime of violence; various other firearm and drug offenses; Life plus 60 years in prison.
- Nathaniel Tyree Mitchell, aka Savage, 26, of Portsmouth, Virginia; Racketeering conspiracy; Four counts of murder in aid of racketeering; Six counts of attempted murder in aid of racketeering; Five counts of assault with a dangerous weapon in aid of racketeering; Four counts of use of a firearm resulting in death; Six counts of use of a firearm during a crime of violence; Five life sentences plus 50 years in prison.
- Anthony Foye, aka Ace and Bull, 27, of Portsmouth, Virginia; Four counts of murder in aid of racketeering; Life in prison.
- Malek Lassiter, aka Leeko, 23, of Portsmouth, Virginia; Racketeering conspiracy; Three counts of attempted murder in aid of racketeering; Two counts of assault with a dangerous weapon in aid of racketeering; Three counts of use of a firearm during a crime of violence; 35 years in prison.
- Alvaughn Davis, aka LB, 30, of Portsmouth, Virginia; Racketeering conspiracy; Use of a firearm resulting in death; Accessory after the fact to murder in aid of racketeering; 45 years in prison.
- Donte Brehon, aka Dog Nutz, 37, of Norfolk, Virginia; Accessory after the fact to assault with a dangerous weapon in aid of racketeering; distribution and possession with intent to distribute heroin; 13 years in prison.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Billy Club. 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. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Trial Attorney Teresa A. Wallbaum of the Justice Department’s Organized Crime and Gang Section and Assistant U.S. Attorneys Joseph E. DePadilla, Andrew C. Bosse and John F. Butler prosecuted the case.
Leader of Nine Trey Gangsters Sentenced to Life in PrisonRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to three consecutive life terms plus an additional 40 years in prison for his leadership role in a racketeering conspiracy, multiple murders, multiple attempted murders, and various drug and gun crimes, all as part of his leadership of the Nine Trey Gangsters Bloods gang.
“Simmons and his gang committed horrific violence across nearly every community in Hampton Roads,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Their actions shattered five families and took parents away from their children. That they did these acts because the gang needed money and to enhance their reputation speaks volumes about what gangs really are – as opposed to what they claim to be when they recruit young men and women in our neighborhoods. Where gangs go, depravity and senseless violence follows. I would like to especially thank the police departments in every South Hampton Roads city for their assistance in bringing these men to justice.”
According to court documents, Antonio Simmons, aka “Murdock,” 41, was a high-ranking leader of a group of Portsmouth and Norfolk-based members of the Nine Trey Gangsters, a Bloods gang affiliated with the United Blood Nation. Simmons and five other members and associates of the gang were charged for their roles in a spate of extreme violence in December 2015 that ended with five people dead and four others shot during seven separate shootings that crossed nearly every city in South Hampton Roads.
Nearly all of the victims in the case were unaffiliated with the Nine Trey Gangsters or any other gang. They included two mothers of young children and one grandmother who was murdered, along with her boyfriend, because gang members believed she was cooperating with the police in an investigation of another shooting carried out by a Nine Trey member just weeks before.
Simmons was found guilty of the two murders that occurred during attempted robberies he directed his men to commit. By the end of December, two of the gang’s primary shooters, Anthony Foye, aka “Ace,” and Nathaniel Mitchell, aka “Savage,” were in a competition to see who could gain a reputation within the gang for shooting the most people. To even the score the men were keeping, Mitchell gunned down a woman walking home from her job at the Norfolk International Airport four days before Christmas. The evidence at trial showed that Simmons bragged about the shootings carried out by Foye and Mitchell.
In late 2015, Simmons ordered Foye, Mitchell, and co-conspirators Alvaughn Davis, aka “LB,” and Malek Lassiter, aka “Leeko,” to murder high-ranking members of a rival Hampton Roads-based Nine Trey Gangsters “line.” When the men were unable to find two of their targets, they drove to the house of a third man they planned to shoot. When the woman who opened the door told them the man was not at home, they shot her six times; her life was saved by the quick response of local EMTs and the Portsmouth Police Department. While the men fled from the scene, they fired several rounds at witnesses looking out of their windows. Foye and Mitchell were arrested after robbing a gas station store later the same night.
Simmons, Mitchell, and Lassiter were convicted on all counts after a seven-week jury trial. Foye and Davis pleaded guilty before trial, and another associate of the gang, Donte Brehon, pleaded guilty in a separate case. Simmons was the last defendant to be sentenced. The men charged, and the sentences they received, are as follows:
Name
Age, Hometown
Convictions
Total Sentence
Antonio Lee Simmons, aka “Murdock,” “Doc”
41, Norfolk
Racketeering conspiracy; Heroin distribution conspiracy; Murder in Aid of Racketeering (2); Attempted murder in aid of racketeering in aid of racketeering (4); Assault with a dangerous weapon (3); Use of a firearm resulting in death (2); Use of a firearm during a crime of violence (4); various other firearm and drug offenses
Life plus 60 years
Nathaniel Tyree Mitchell, aka “Savage”
26, Portsmouth
Racketeering conspiracy; Murder in aid of racketeering (4); Attempted murder in aid of racketeering (6); Assault with a dangerous weapon in aid of racketeering (5); Use of a firearm resulting in death (4); Use of a firearm during a crime of violence (6)
5 Life sentences plus 50 years
Anthony Foye, aka “Ace,” “Bull”
27, Portsmouth
Murder in aid of racketeering (4)
Life
Malek Lassiter, aka “Leeko”
23, Portsmouth
Racketeering conspiracy; Attempted murder in aid of racketeering (3); Assault with a dangerous weapon in aid of racketeering (2); Use of a firearm during a crime of violence (3)
35 years
Alvaughn Davis, aka “LB”
30, Portsmouth
Racketeering conspiracy; Use of a firearm resulting in death; Accessory after the fact to murder in aid of racketeering
45 years
Donte Brehon, aka “Dog Nutz”
37, Norfolk
Accessory after the fact to assault with a dangerous weapon in aid of racketeering; distribution and possession with intent to distribute heroin
13 years
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Angela Greene, Interim Chief of Portsmouth Police; Larry D. Boone, Chief of Norfolk Police; James A. Cervera, Chief of Virginia Beach Police; Col. K.L. Wright, Chief of Chesapeake Police; and Thomas E. Bennett, Chief of Suffolk Police, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorneys Joseph E. DePadilla, Andrew C. Bosse and John F. Butler, and Trial Attorney Teresa A. Wallbaum of the Justice Department’s Organized Crime and Gang Section prosecuted the case.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Billy Club. 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. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-130.
Lake Charles man subject to domestic violence protective order sentenced to 2 years in prison for possessing a revolverRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced today that John Casimere, 33, of Lake Charles, was sentenced to two years in prison by U.S. District Judge Donald E. Walter for possessing a revolver. He was also sentenced to three years of supervised release.
Lake Charles police encountered Casimere on May 28, 2018 at a Lake Charles residence after responding to a domestic disturbance involving a firearm. At the time of this incident, Casimere possessed an RG Industries .22-caliber revolver, had been previously convicted of a misdemeanor crime of domestic violence, and was subject to a protection order, which prohibited him from possessing a firearm. He pleaded guilty to the federal charge on February 8, 2019.
The ATF and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Justice Department Files Lawsuit Alleging Transperfect Staffing Solutions Discriminated Against Dual U.S. Citizens and Work-Authorized Non-U.S. CitizensRead the Press Release
The Department of Justice announced today that it filed a lawsuit against Chancery Staffing Solutions LLC (Chancery Staffing), a temporary staffing agency headquartered in New York. Chancery Staffing is the successor to TransPerfect Staffing Solutions LLC (TransPerfect Staffing) and continues to do business as both TransPerfect Staffing Solutions and TransPerfect Legal Solutions. The lawsuit alleges that TransPerfect Staffing discriminated against non-U.S. citizens and dual U.S. citizens in violation of the Immigration and Nationality Act (INA), and that Chancery Staffing is liable for the discrimination as its successor.
“Staffing agencies must be diligent in satisfying their obligation under the INA to avoid citizenship status discrimination against U.S. citizens and protected non-citizens, even when that discrimination is requested by a client,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice is committed to challenging such unlawful and discriminatory hiring practices.”
The lawsuit alleges that from at least April 4, 2017, to at least July 7, 2017, TransPerfect Staffing limited its recruitment and hiring of attorneys for a temporary document review project to U.S. citizens only. Additionally, the lawsuit alleges that from at least May 12, 2017, to July 7, 2017, TransPerfect Staffing further restricted its recruitment and hiring for positions under the project to exclude U.S. citizens who were also citizens of another country. Although it implemented these discriminatory policies at the request of a client, TransPerfect Staffing actively participated in the discriminatory hiring process and remained the employer of the document reviewers assigned to the project, according to the lawsuit.
Under the INA, it is unlawful for employers to discriminate intentionally against U.S. citizens, U.S. nationals, recent lawful permanent residents, asylees and refugees in hiring unless required to comply with a law, regulation, executive order, Attorney General determination, or provision of a federal, state, or local government contract. Absent such a requirement, employers that limit their hiring to U.S. citizens may violate the INA’s anti-discrimination provision.
The United States’ complaint seeks civil penalties, back pay on behalf of the workers, and other remedial relief to correct and prevent discrimination. The United States filed its suit in the Office of the Chief Administrative Hearing Officer, a specialized administrative court that Congress created to resolve such claims.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
More information on how employers can avoid unlawful citizenship status discrimination is available here. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Jury finds podiatrist guilty of operating pill millRead the Press Release
ATLANTA – Dr. Arnita Avery-Kelly, a licensed podiatrist, has been found guilty on federal charges of illegally prescribing opioid painkillers and other drugs at clinic locations purporting to provide podiatric care in Sandy Springs, and Lithonia, Georgia.
“Avery-Kelly took an oath and was trusted to provide appropriate podiatric care to her patients,” said U.S. Attorney Byung J. “BJay” Pak. “Instead, with the assistance of her office manager, she prescribed addictive opioids without any legitimate medical need, turning her prescription pad into an ATM. Her behavior fed into the continuing problem of addiction to powerful prescription opioids, which, unfortunately, continues to take a daily toll on many members of our community.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division said of the case, “While in the midst of this country’s prescription opioid crisis, removing and ultimately eliminating physicians who recklessly overprescribe pharmaceutical pills (particularly prescribed opioids) for non-medical reasons, is an important part of DEA’s mission. This pill peddling Podiatrist distributed large quantities of opiate-based pills to scores of drug-seeking patients. She will no longer be able to commit such unlawful acts because of the hard work and dedication put forth by DEA, its federal, state and local law enforcement partners and the U.S. Attorney’s Office.”
“Dr. Avery-Kelly DPM abused her position as a podiatrist and recklessly prescribed very powerful and addictive opioids without any regard for the devastating effects they would have,” said Derrick L. Jackson, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “HHS-OIG is committed to bringing to justice, those medical practitioners who would endanger our communities, taint their profession and abuse their ability to prescribe these drugs for profit.”
According to U.S. Attorney Pak, the charges and other information presented in court: Arnita Avery-Kelly was a licensed podiatrist, which means she was permitted to evaluate and treat the foot and leg. A nearly three-year federal investigation began when the Georgia Drug & Narcotics Agency (GDNA) agents contacted Dr. Avery-Kelly in November 2013, and again in February 2014, to discuss the high volume, high dosage prescriptions she had written for opioids. Despite GDNA’s warnings, as well as a subsequent inquiry by the Georgia Podiatry Board, Dr. Avery-Kelly, with the assistance of office manager Brenda Lewis, continued to prescribe large volumes of controlled substances without a legitimate medical need and outside the scope of podiatric practice.
After these visits, GDNA worked with the Drug Enforcement Administration (DEA) and the Department of Health and Human Services (HHS) to conduct the investigation, which culminated in this jury trial.
After being suspended from submitting claims through Medicare, Avery-Kelly began prescribing opioids and benzodiazepines to addicts and drug traffickers posing as patients at her podiatric clinics. During the time her clinics were open, Avery-Kelly prescribed over 275,000 30mg oxycodone pills, along with 104,000 8mg hydromorphone pills, and 300 fentanyl patches to patients who were either addicted to these substances or selling them on the streets. The average price for a single Oxycodone 30mg pill was about $30 per pill.
In April 2016, DEA and HHS agents executed a federal search warrant at Avery-Kelly’s office in Sandy Springs, effectively shutting down her clinics. At that time, Avery-Kelly also voluntarily surrendered her DEA registration, which permitted her to prescribe controlled substances. After five days of hearing evidence and two days of deliberation, a jury found Avery-Kelly guilty of 27 counts of distributing these highly addictive opioids, without a legitimate medical purpose and outside the scope of professional practice.
Sentencing for Arnita Avery-Kelly, 56, of Sandy Springs, Georgia, is scheduled for July 24, 2019, at 10:00 a.m. before U.S. District Judge Eleanor L. Ross. Avery-Kelly was indicted along with her officer manager, Brenda Lewis, on December 21, 2016.
This case is being investigated by the Drug Enforcement Administration and Department of Health and Human Services.
Assistant U.S. Attorneys Trevor Wilmot and Cassandra J. Schansman are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Jury Convicts KC Man of Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was convicted by a federal trial jury today of his role in a three-months-long conspiracy that included at least 27 armed robberies, culminating in the armed robbery of a Walgreens in Blue Springs, Mo., in which a suspect was fatally shot by law enforcement officers.
Shannon R. Thomas, 28, was found guilty of participating in the conspiracy as well as participating in ten armed robberies. He was also found guilty of ten counts of brandishing a firearm in furtherance of a violent crime, and one count of being a felon in possession of a firearm. Thomas faces a mandatory minimum sentence of 70 years in federal prison without parole.
Evidence introduced during the trial indicated that Thomas and co-conspirators robbed 27 businesses in Blue Springs, Independence, North Kansas City, Raytown, Kansas City, Mo., and Kansas City, Kan., at gunpoint from Jan. 2 to March 24, 2016. In addition to the armed robberies charged in the indictment, evidence was introduced during the trial of other, uncharged robberies that were committed in furtherance of the conspiracy. Victim businesses included convenience stores, pharmacies, and other businesses.
The robberies followed a similar pattern: Two or three conspirators entered the business armed with handguns, wearing gloves, hoodies, and/or masks. The hoodies were drawn tightly over their faces to obscure their features. The employees were forced at gunpoint to hand over money from the cash register and the safe. The thieves wore the same hoodies in nearly all the robberies; Thomas wore a blue Kansas City Royals hoodie for the majority of the robberies he committed.
The spree of robberies culminated on March 24, 2016. Thomas, along with co-defendant Deonte J. Collins-Abbott, 24, of Grandview, Mo., and Jermon Seals of Shawnee, Kan., robbed the Walgreens at 7 Highway and Duncan in Blue Springs. Thomas placed a Springfield Armory .40-caliber semi-automatic pistol to the back of an employee’s head and took money from the front register. Collins-Abbott and Seals went over the pharmacy counter and took prescription grade cough syrup at gunpoint from the pharmacist. They left the business but were confronted by law enforcement officers as they were walking back to the vehicle. They failed to comply with the officers’ commands; Seals turned towards the officers, pointing a gun in their direction. Officers returned fire and Seals was fatally struck in the exchange. Thomas and Collins-Abbott were apprehended by officers after a short foot chase.
Collins-Abbott pleaded guilty and was sentenced to 25 years in federal prison without parole. Collins-Abbott admitted that he committed eight armed robberies between Feb. 3, 2016, and March 24, 2016.
Co-defendants Kevin T. Thompson-Randell, 23, and Demetrius Nelson, 26, both of Kansas City, Mo.; and Parrise K. Black, also known as “Kilo,” 26, and Frank A. Garner, Jr., 25, both of Grandview, have also pleaded guilty and await sentencing.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately three hours before returning the guilty verdict to U.S. District Judge Greg Kays, ending a trial that began Monday, May 6, 2019.
Under federal statutes, Thomas is subject to a sentence of up to 20 years in federal prison without parole for participating in the conspiracy, and up to 20 years in federal prison without parole for each of the ten armed robberies. Thomas is also subject to a mandatory minimum sentence of seven years in federal prison without parole for each of the ten counts of brandishing a firearm in furtherance of a crime of violence, which must be served consecutively. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Adam Caine and Special Assistant U.S. Attorney Mary Kate Butterfield. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Independence, Mo., Police Department, the North Kansas City, Mo., Police Department, the Kansas City, Kan., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Marshals Service.
Jamestown Man Pleads Guilty to Production and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today James A. Chapman, a/k/a Fatz Guy, a/k/a Perverted Doe, 37, of Jamestown, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to production and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 40 years, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on November 24, 2014, Chapman and Victim 1 communicated via Facebook Messenger about engaging in sexual activity. During the communications, the defendant offered to pay Victim 1 and one of her friends $60 each to have sex with him. Victim 1 stated that she was 16-years-old and that her friend was the same age. Later that evening, Victim 1 and Victim 2 went to Chapman’s residence in Jamestown, and the defendant engaged in sexual intercourse with them, after which Chapman paid each victim $60.
Following the sexual activity, the defendant used his cellular telephone to take a picture of Victim 1 and Victim 2 completely nude sitting on his bed. A review of Chapman’s Facebook accounts revealed that he then distributed the photograph, which constitutes child pornography, to four other individuals.
Subsequently, on April 7, 2017, the defendant began communicating with Victim 3, who was 17-years-old, through Facebook. During their communications, Chapman requested and received a sexually explicit image of Victim 3. The defendant then sent the image, which constitutes child pornography, to another individual. In addition, Chapman sent Victim 3 the sexually explicit image he took of Victim 1 and Victim 2.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
Sentencing is scheduled for September 16, 2019, before Judge Vilardo.
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Indictment: Guatemalan Returned Less Than Four Months After Being DeportedRead the Press Release
KANSAS CITY, KAN. – A Guatemalan man was indicted here Wednesday on charges of unlawfully returning to the United States less than four months after he was deported. U.S. Attorney Stephen McAllister said.
Andres Marcelo De Leon-Perez, 25, is charged with one count of unlawfully re-entering the United States.
Documents filed in federal court in Kansas City, Kan., allege that on Dec. 27, 2018, Leon-Perez was deported and flown home to Guatemala. Less than four months later, April 11, 2019, he was found in Wyandotte County, Kan.
It was not the first time he was alleged to have returned unlawfully. On Nov. 4, 2017, the defendant was apprehended by the U.S. Border Patrol near Valentine, Texas. On Jan. 22, 2018, he was deported and flown home to Guatemala.
In his most recent arrest, De Leon-Perez was one of 10 persons detained after the Kansas Highway Patrol stopped their vehicle in Paola, Kan.
If convicted, he faces a penalty of up to two years in federal prison and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
OTHER INDICTMENTS
Jordy Ulises Cody-Lemus, 20, a citizen of Guatemala, is charged with unlawfully re-entering the United States after being deported. He was found April 11, 2019, in Wyandotte County, Kan.
If convicted, he faces a penalty of up to two years in federal prison and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal Alien Pleads Guilty After Third DWI in 5 YearsRead the Press Release
RICHMOND, Va. – A Guatemalan citizen pleaded guilty today to illegal reentry following removal after being convicted of a felony.
According to court documents, Esau Juarez-Garcia, 42, was arrested in March 2014 in Chesterfield County and convicted of his third driving while intoxicated offense in five years, which resulted in a felony. In April 2014, Juarez Garcia was deported at taxpayer expense. Sometime thereafter he illegally returned to the United States. In February 2019, ICE learned of his return after he was arrested in Chesterfield County for local violations.
Juarez-Garcia pleaded guilty to illegal reentry following removal after being convicted of a felony and faces a maximum penalty of 10 years in prison when sentenced on August 13. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Actual sentences for federal crimes are typically less than the maximum penalties
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle A. Boelens, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after U.S. Magistrate Judge Roderick C. Young accepted the plea. Assistant U.S. Attorney S. David Schiller is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-59.
IRS Official Arrested on Federal Bribery Charge for Allegedly Taking $5,000 in Cash to Reduce a Taxpayer’s Debt to the Tax AgencyRead the Press Release
SANTA ANA, California – An Internal Revenue Service official was arrested this morning for allegedly soliciting and accepting a $5,000 bribe to reduce the tax liability of a taxpayer who was under audit.
Felecia Edna Taylor, 50, a resident of the Florence neighborhood in South Los Angeles, was arrested at the IRS office in Long Beach after being named in a one-count criminal complaint that charges her with solicitation and receipt of a bribe by a public official.
Taylor is making her initial court appearance this afternoon in United States District Court in Santa Ana.
According to an affidavit in support of the criminal complaint, Taylor, who has been employed at the IRS since 1990, works as a tax compliance officer in Long Beach, where she plans and conducts examinations of individual and business taxpayers. On May 1, a taxpayer contacted law enforcement, and stated that, at a meeting two days earlier, Taylor was “inviting a bribe” in exchange for lowering the amount owed to the IRS to $10,000, according to court documents. The taxpayer was supposed to pay the bribe to Taylor on May 7 at her Long Beach office, court papers state.
The taxpayer met with law enforcement on Tuesday, was equipped with recording devices, and was given $5,000 in cash to give to Taylor, the affidavit states. According to a recording of that meeting, Taylor provided adjusted tax records to show a reduction of the taxpayer’s liability to $10,616 as agreed and, in response, the taxpayer handed Taylor an envelope containing $5,000 in cash. Taylor allegedly took the envelope in one hand, mouthed the word, “Five?” and placed five fingers in the air to non-verbally confirm the amount of cash the taxpayer had just given her. When the taxpayer replied, “Yes, what we agreed on, yep it’s all there,” Taylor placed the envelope on her desk and stated, “We are all done,” the affidavit states.
If convicted of the bribery charge, Taylor would face a statutory maximum penalty of 15 years in federal prison.
A complaint 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 was investigated by the U.S. Treasury Inspector General for Tax Administration.
This case is being prosecuted by Assistant United States Attorney Jennifer Waier of the Santa Ana Branch Office.
I.T. Specialist Sentenced to 3 Years in Prison for Hacking into Servers of North Suburban CompanyRead the Press Release
CHICAGO — An information technology specialist has been sentenced to three years in federal prison for hacking into the servers of a north suburban company where he formerly worked as a contractor.
EDWARD SOYBEL, 35, of Chicago, illegally accessed the servers of Lake Forest-based W.W. Grainger Inc., on multiple occasions in late 2016. Soybel intentionally caused damage to Grainger’s automated inventory management program, which operates on-site dispensing machines for customers throughout the United States. The dispensing machines provide secure access to durable products, such as safety equipment. Soybel had worked as a technical support contractor at Grainger’s facility in Niles until he was terminated in early 2016.
A federal jury last year convicted Soybel on all 12 counts against him, including ten counts of intentionally causing damage to protected computers, one count of attempting to cause damage to protected computers, and one count of attempting to access a protected computer without authorization.
Soybel has been in custody since December 2018, after he recorded a video of himself issuing threats of violence to law enforcement. Before imposing the sentence Wednesday in federal court, U.S. District Judge Matthew F. Kennelly stated that he considered Soybel’s threats to be a significant aggravating factor, and he increased the sentence due to the gravity of the threats.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The Chicago Police Department provided valuable assistance.
“Defendant’s crimes were not an isolated lapse of judgment or one-off outburst,” Assistant U.S. Attorney Nicholas J. Eichenseer argued in the government’s sentencing memorandum. “He essentially declared cyber war on Grainger, not out of principle or for financial gain, but out of spite.”
Evidence at trial revealed that Soybel repeatedly gained unauthorized access to a secure computer network of Grainger, a multi-national industrial supply company. The network was an inventory-management system that operated a nationwide grid of dispensing machines to securely provide tools and safety equipment at customer sites. Soybel remotely broke into the computer system by stealing and then using his former co-workers’ usernames and passwords. Once inside the network, Soybel deleted millions of database records and reset the passwords.
The deletions caused outages of the system, locked out users, and temporarily impaired the dispensing machines. Soybel’s attacks began in July 2016 and continued for several months. Grainger incurred at least $300,000 in costs responding to the cyber-attacks.
Hudson County Woman Convicted at Trial of Enslaving Sri Lankan Woman for over Nine YearsRead the Press Release
CAMDEN, N.J. – A Hudson County, New Jersey, woman was convicted today of charges of forced labor, alien harboring for financial gain, and marriage fraud, U.S. Attorney Craig Carpenito and Assistant Attorney General Eric Dreiband of the Civil Rights Division announced.
Alia Imad Faleh Al Hunaity, a/k/a “Alia Al Qaternah,” 43, was found guilty on all counts of the indictment against her following a six-day trial before U.S. District Judge Robert B. Kugler in Camden federal court. The jury deliberated for two hours before returning the guilty verdicts.
“The defendant in this case treated the victim as a slave,” U.S. Attorney Carpenito said. “Al-Hunaity kept the victim in this country illegally and hid her away, in order to force her to perform household work for Al-Hunaity without pay, privacy, or the ability to move about freely. Through the guilty verdicts in this case and other prosecutions like it, this office continues to work to ensure that the evil of human trafficking is brought out from hiding and into the light so that it may be punished appropriately.”
“The defendant took advantage of the victim for years, forcing her to live in terrible conditions, work without pay, and then enter into a fraudulent marriage to continue the cycle of abuse,” Assistant Attorney General Dreiband said. “The Department of Justice will continue to investigate and vigorously prosecute forced labor cases so that victims can obtain justice.”
According to documents filed in this case and the evidence at trial:
Hunaity brought the victim, a Sri Lankan national, to the United States on a temporary visa in 2009 to perform domestic work. Hunaity caused the victim to overstay her visa and remain in the United States illegally for over nine years. Hunaity forced the victim to cook and clean her homes in Woodland Park and Secaucus, New Jersey, and to care for her three children, all without pay. She limited the victim’s interactions with the world outside of Hunaity’s homes. During this time, Hunaity required the victim to sleep on a bed in a public space in Hunaity’s homes, including in the kitchen. In 2018, Hunaity forced the victim to marry her so that the victim could obtain legal residence and Hunaity could continue to force her to work without fear of the victim being deported.
The forced labor charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Sept. 4, 2019.
U.S. Attorney Carpenito and assistant Attorney General Dreiband credited special agents of U.S. Homeland Security Investigations, Newark Division, under the direction of Special Agent in Charge Brian Michael, and special agents of the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s verdicts.
This case was prosecuted in conjunction with the interagency Anti-Trafficking Coordination Team initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies. U.S. Citizenship and Immigration Services’ Newark Fraud Detection and National Security Unit also provided support.
The government is represented by Assistant U.S. Attorneys Andrew Macurdy and Alyson M. Oswald of the U.S. Attorney’s Office for the District of New Jersey, Criminal Division, and Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Hudson County Woman Convicted at Trial of Compelled Labor of Sri Lankan Woman for over Nine YearsRead the Press Release
A Hudson County, New Jersey, woman was convicted today on charges of forced labor, alien harboring for financial gain, and marriage fraud, announced Assistant Attorney General Eric Dreiband of the Civil Rights Division and U.S. Attorney Craig Carpenito for the District of New Jersey.
Alia Imad Faleh Al Hunaity, aka “Alia Al Qaternah,” 43, was found guilty on all counts of the indictment against her following a six-day trial before U.S. District Judge Robert B. Kugler in Camden federal court. The jury deliberated for two hours before returning the guilty verdict.
“The defendant took advantage of the victim for years, forcing her to live in terrible conditions, work without pay, and then enter into a fraudulent marriage to continue the cycle of abuse,” said Assistant Attorney General Eric Dreiband. “The Department of Justice will continue to investigate and vigorously prosecute forced labor cases so that victims can obtain justice.”
“The defendant in this case treated the victim as a slave,” U.S. Attorney Carpenito said. “Al-Hunaity kept the victim in this country illegally and hid her away, in order to force her to perform household work for Al-Hunaity without pay, privacy, or the ability to move about freely. Through the guilty verdicts in this case and other prosecutions like it, this office continues to work to ensure that the evil of human trafficking is brought out from hiding and into the light so that it may be punished appropriately.”
According to documents filed in this case and the evidence at trial, Hunaity brought the victim, a Sri Lankan national, to the United States on a temporary visa in 2009 to perform domestic work. Hunaity caused the victim to overstay her visa and remain in the United States illegally for over nine years. Hunaity forced the victim to cook and clean her homes in Woodland Park and Secaucus, New Jersey, and to care for her three children, all without pay. She further limited the victim’s interactions with the world outside of Hunaity’s homes. During this time, Hunaity required the victim to sleep on a bed in a public space in Hunaity’s homes, including in the kitchen. In 2018, Hunaity forced the victim to marry her so that the victim could obtain legal residence and Hunaity could continue to force her to work without fear of the victim being deported.
The forced labor charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Sept. 4.
U.S. Homeland Security Investigations, Newark Division, under the direction of Brian Michael, led the investigation.
This case was prosecuted in conjunction with the interagency Anti-Trafficking Coordination Team initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
The government is represented by Assistant U.S. Attorneys Andrew Macurdy and Alyson M. Oswald of the U.S. Attorney’s Office for the District of New Jersey, Criminal Division, and Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Honduran Drug Trafficker Sentenced to 33 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – A Honduran man was sentenced today to 33 years in prison for leading a drug trafficking organization that smuggled at least thousands of kilos of cocaine into the United States over the last decade.
According to court records and evidence presented at trial, Arnulfo Fagot-Maximo, 58, was the leader of a drug trafficking organization based in the La Mosquitia region of the Department of Gracias a Dios, Honduras. His organization was a critical link between Colombian cocaine suppliers and other major Honduran traffickers. For over a decade, Fagot-Maximo received cocaine along the Mosquitia coast from Colombia by “go fast” boats, small aircraft, and submersible vessels in quantities ranging from a few hundred to several thousand kilograms per delivery. Most of this cocaine was transferred to the Montes-Bobadilla organization in Francia, Honduras, where it was received by other traffickers. Eventually the cocaine was transported by land through Honduras and Guatemala, and then it was delivered to the Mexican cartels for importation into the United States. Fagot-Maximo received tens of millions of dollars in U.S. currency for the sale and delivery of this cocaine.
The case was investigated by the DEA as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Harpoon through DEA’s HIDTA Task Force in Annandale, Virginia. 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. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General for the Criminal Division of the Department of Justice, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady.
Assistance in the investigation and prosecution was provided by the U.S. Attorney’s Offices for the Southern District of New York, the Middle District of Florida, and the Southern District of Florida. Assistance was also provided by the U.S. Coast Guard and the Honduran National Police. Assistant U.S. Attorneys James L. Trump, Thomas W. Traxler and DOJ Trial Attorney Anthony Aminoff prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-290.
Honduran Drug Trafficker Sentenced to 33 Years in PrisonRead the Press Release
A Honduran man was sentenced today to 33 years in prison for leading a drug trafficking organization that smuggled at least thousands of kilos of cocaine into the United States over the last decade.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration’s (DEA) Washington Field Division, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, Special Agent in Charge Raymond Villanueva of U.S Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C. and Superintendent of Virginia State Police Colonel Gary T. Settle made the announcement.
Arnulfo Fagot-Maximo, 58, was sentenced by U.S. District Judge Liam O’ Grady for the Eastern District of Virginia. According to court records and evidence presented at trial, Fagot-Maximo was the leader of a drug trafficking organization based in the La Mosquitia region of the Department of Gracias a Dios, Honduras. His organization was a critical link between Colombian cocaine suppliers and other major Honduran traffickers. For over a decade, Fagot-Maximo received cocaine along the Mosquitia coast from Colombia by “go fast” boats, small aircraft and submersible vessels in quantities ranging from a few hundred to several thousand kilograms per delivery. Most of this cocaine was transferred to the Montes-Bobadilla organization in Francia, Honduras, where other traffickers received it. Eventually the cocaine was transported by land through Honduras and Guatemala, and then it was delivered to the Mexican cartels for importation into the United States. Fagot-Maximo received tens of millions of dollars in U.S. currency for the sale and delivery of this cocaine.
The case was investigated by the DEA as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Harpoon through DEA’s HIDTA Task Force in Annandale Virginia. 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. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Assistance in the investigation and prosecution was provided by the U.S. Attorney’s Offices for the Southern District of New York, the Middle District of Florida, and the Southern District of Florida. Assistance was also provided by the U.S. Coast Guard and the Honduran National Police. Assistant U.S. Attorneys James L. Trump, Thomas W. Traxler and Trial Attorney Anthony Aminoff with the Narcotic and Dangerous Drug Section prosecuted the case.
Group Home Supervisor Sentenced for Sex Trafficking a MinorRead the Press Release
PROVIDENCE – A supervisor at a group home contracted by DCYF who repeatedly sex trafficked a missing 17-year-old girl was sentenced today to 10 years in federal prison, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of Homeland Security Investigations Peter C. Fitzhugh, and Cranston Police Chief Colonel Michael J. Winquist.
According to court documents and information presented to the Court, in March and April 2017, Reysean Williams, 28, with the assistance of another individual, Leonardo Gomes, 20, of Pawtucket, sex trafficked the 17-year-old in Rhode Island, Massachusetts and on Long Island, New York, by posting advertisements and pictures of the teenager on Backpage.com. The ads were discovered by agents from Homeland Security Investigations and Cranston Police Department detectives.
Williams first encountered Gomes when Williams was Gomes’ supervisor in a Pawtucket residential group home contracted to provide services in DCYF care. After Gomes was released from DCYF custody, Williams recruited Gomes to participate in the sex trafficking operation. Williams often used a group home van to meet with Gomes and collect the proceeds from the sex trafficking of the 17-year-old.
To determine where the victim was being trafficked, agents responded to a telephone number listed in the ads on Backpage.com to arrange a commercial sexual encounter with the 17-year-old at an apartment established by Cranston Police. The victim and a female companion were taken into custody when they arrived at the apartment. Gomes was found sitting in a vehicle across from the apartment and was arrested. Williams was located and arrested about a week later.
The investigation determined that in early March 2017, the victim met Williams and agreed to do “plays” for him as a way of earning cash. The victim told investigators that from mid-March to mid-April she usually did around 6 plays per day, but sometimes as many as 10 per day. The victim told investigators that often times Gomes would drive her to various locations to perform sex acts in exchange for money in the Providence metropolitan area and in Massachusetts in a vehicle supplied by Williams. The victim was also driven by Gomes and Williams to locations as far away as the North Shore of Boston and on Long Island to perform sex acts in exchange for payment. Hotel rooms were paid for in cash by Williams. All of the money paid to the 17-year-old was turned over to Gomes and Williams, none of which was shared with the victim.
Reysean Williams pleaded guilty on November 30, 2018, to sex trafficking a child. He was sentenced today to 10 years in federal prison to be followed by 5 years supervised release.
Leandro Gomes pleaded guilty on November 30, 2018, to travelling in interstate commerce with intent to engage in criminal sexual activity. He was sentenced on March 15, 2019, to 36 months imprisonment to be followed by 10 years supervised release.
The cases were prosecuted by Assistant U.S. Attorneys Terrence P. Donnelly and John P. McAdams.
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Griffith Man Sentenced to 84 Months in PrisonRead the Press Release
HAMMOND- Mohammad Amara, 28, of Griffith, Indiana, was sentenced by Senior U.S. District Court Judge James T. Moody upon his plea of guilty to possession of a firearm by a felon, announced U.S. Attorney Kirsch.
Amara was sentenced to 84 months in prison.
According to documents in the case, on March 20, 2018, Amara was arrested in Griffith, Indiana, following possessing a firearm. At the time of his arrest, Amara was planning a home invasion robbery and possessed a backpack containing latex gloves, a hoodie, and other clothing to be used during the robbery. Amara was on parole for a prior robbery conviction at the time of his arrest. Amara has six prior felony convictions, including convictions for robbery, controlled substance possession, forgery, and three theft convictions.
This case was investigated by ATF. This case was prosecuted by Assistant United States Attorney Nicholas J. Padilla.
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Goshen Man Sentenced to 61 Months in PrisonRead the Press Release
SOUTH BEND –Marcell Spencer, age 23, of Goshen, Indiana, was sentenced before United States District Court Judge Jon E DeGuilio, upon his plea of guilty to possessing with intent to distribute marijuana and possession of firearms in furtherance of a drug trafficking crime, announced U. S. Attorney Kirsch.
Spencer was sentenced to 61 months in prison followed by 3 years of supervised release.
According to documents in this case, Mr. Spencer entered a guilty plea for possession with intent to distribute marijuana and possession of firearms in furtherance of a drug trafficking crime. The charges arose out of a search warrant executed in May of 2018 at the defendant’s home where marijuana and weapons were found.
The case was investigated by the ATF with the assistance of the Goshen Police Department and was handled by Assistant United States Attorney Frank E. Schaffer.
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Geneseo, ND, Man Sentenced for Migratory Bird Treaty Act ViolationsRead the Press Release
Fargo – United States Attorney Drew H. Wrigley announced that on May 8, 2019, United States Magistrate Judge Alice R. Senechal sentenced Jesse James Mertins, age 40, Geneseo, ND, to pay a $15,000 fine and serve five years of probation for violations of the Migratory Bird Treaty Act.
In 2017, Mertins set 19 pole traps around an enclosure in which Mertins raised exotic waterfowl to protect his investment in these waterfowl from predatory birds. Agents from United States Fish and Wildlife Service recovered at least 26 migratory birds from in and beneath these pole traps, including ten Great horned owls, one Sharp-shinned hawk, one Cooper’s hawk, one great blue heron, one hooded merganser, seven common grackles, four American robins, and one yellow-headed blackbird. All of these birds are protected by the Migratory Bird Treaty Act.
U.S. Attorney Drew H. Wrigley stated, “The facts of this case are particularly egregious given the large number of pole traps, the small area in which those traps were placed, and the substantial number of migratory birds killed, including more than a dozen birds of prey. This was an important investigation, and we are committed to investigating and pursuing similar cases up ahead.”
This case was investigated by United States Fish and Wildlife Service.
Assistant United States Attorney Megan A. Healy prosecuted the case.
Gary Man Sentenced to 174 Months in PrisonRead the Press Release
HAMMOND- Michael Terrance Henderson, 43, of Gary, Indiana, was sentenced by Senior U.S. District Court Judge James T. Moody after pleading guilty to possession of a firearm with an obliterated serial number and possession of a stolen firearm, announced U.S. Attorney Kirsch.
Henderson was sentenced to 174 months in prison followed by 3 years of supervised release.
According to documents in the case, on April 26, 2018, the Gary, Indiana Police Department responded to a disturbance at a Gary residence in which Henderson was alleged to have threatened to kill another person in the home with a firearm. During the disturbance, Henderson was wearing a bullet-proof vest and possessed a semi-automatic pistol with an obliterated serial number and an extended thirty-round magazine, in addition to possessing another firearm that he had stolen from someone in the home. Henderson has six prior felony convictions, including three prior convictions for robbery and prior convictions for escape, intimidation, and theft.
This case was investigated by the ATF/HIDTA Task Force and the Gary, Indiana Police Department. This case was prosecuted by Assistant United States Attorneys Nicholas J. Padilla and Thomas M. McGrath.
Four Texas Men Arrested and One Fugitive Sought for their Roles in Scheme to Launder Millions from Business Email Compromise FraudRead the Press Release
A federal grand jury indictment unsealed in Austin charges five Texas residents, all Nigerian nationals, for their roles in laundering millions derived from Business Email Compromise (BEC) schemes. Two Austin residents, also Nigerian nationals, pleaded guilty earlier this year for their roles in the scheme.
That announcement was made today by U.S. Attorney John F. Bash; Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI), San Antonio; and, Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service (USPIS), Houston Division.
Bameyi Kelvin Omale, a 31-year-old resident of Houston; Nnamdi Nwosu, a 32-year-old resident of Houston; Chinonso Agbaji, a 29-year-old resident of Houston; Igho Calaba, a 25-year-old resident of Austin; and Chibuzor Stanley Uba, a 30-year-old resident of San Antonio, were all charged with one count of money laundering conspiracy. Nwosu, Agbaji, and Calaba were also each charged with one count of passport fraud in furtherance of the money laundering conspiracy. Yesterday and today, federal authorities arrested Omale, Agbaji, Calaba and Uba. Nwosu remains a fugitive in this case.
According to the indictment, the funds were largely derived from BEC schemes perpetrated against U.S. and foreign victims. Over $10 million was allegedly sent by victims to accounts controlled by the defendants, who were able to take in excess of $3 million before law enforcement or financial institutions stopped the fraudulent transfers. In a BEC scheme, scammers target businesses and individuals making wire transfer payments, often targeting employees with access to company finances. The scammers trick the employees into making wire transfer payments to bank accounts thought to belong to trusted partners—except the money ends up in accounts controlled by the fraudsters. Sometimes the scammers use computer intrusion techniques to alter legitimate payment request emails, changing the recipient bank accounts. Sometimes they send spoofed emails from email addresses similar to trusted partners.
Whatever the BEC method used, the scammers need bank accounts controlled by coconspirators to collect the stolen money. The indictment alleges that the conspirators acquired or controlled dozens of bank accounts opened in the United States, including in Austin, TX, utilizing fraudulent identification documents, including fraudulent foreign passports in fake names. The indictment alleges that once the funds were fraudulently procured and deposited into these bogus accounts, the defendants worked quickly to withdraw or transfer the funds.
The indictment further alleges that some of the conspirators also received funds sent by the victims of romance fraud.
In February 2019, Joseph Odibobhahemen, a 28-year-old resident of Austin, pleaded guilty to one count of money laundering conspiracy. In December 2018, Nosa Onaghise, a 32-year-old resident of Austin, pleaded guilty to one count of passport fraud in furtherance of the money laundering conspiracy. As alleged in court documents, they were acting as part of the same scheme to launder funds from BEC fraud. Both remain in federal custody awaiting sentencing.
Money laundering conspiracy calls for up to 20 years in federal prison upon conviction; passport fraud calls for up to 10 years in federal prison upon conviction.
This indictment resulted from a continuing investigation by HSI and USPIS. The FBI also assisted in the investigation as did the California Highway Patrol. The U.S. Attorney’s Offices for the Southern District of Texas and the Southern District of New York also provided assistance. Assistant U.S. Attorneys Michael Galdo and Keith Henneke are prosecuting this case on behalf of the Government.
Anyone with information as to the whereabouts of Nnamdi Nwosu is asked to contact U.S. Immigration and Customs Enforcement (ICE). ICE encourages the public to report any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Fort Dodge Woman Pleads Guilty to Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine pled guilty May 8, 2019, in federal court in Sioux City.
Chelsea Kay Collins, 30, from Fort Dodge, Iowa, was convicted of one count of conspiracy to distribute methamphetamine and one count of distributing methamphetamine.
At the plea hearing, Collins admitted her involvement in a conspiracy that distributed methamphetamine in the Fort Dodge area from January 2018 through September 2018. In four separate transactions in July 2018, Collins distributed and aided others in the distribution of over 35 grams of pure methamphetamine to individuals cooperating with law enforcement.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Collins remains in custody of the United States Marshal pending sentencing. Collins faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $5,000,000 fine, and at least four years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Fort Dodge Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Webster County, Iowa Sheriff’s Office, and Iowa Division of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3041.
Follow us on Twitter @USAO_NDIA.
Former United Way of Santa Rosa County Head Pleads Guilty to Embezzling Money from Charity and Tax EvasionRead the Press Release
PENSACOLA, FLORIDA – Guyland W. Thompson, 65, of Milton, pleaded guilty today to twenty counts of wire fraud and three counts of tax evasion stemming from his embezzlement of funds from United Way of Santa Rosa County (“UWSRC”). Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the guilty plea.
His sentencing hearing is currently set for July 29, 2019, at 1:00 p.m. The government intends to forfeit all proceeds of Mr. Thompson’s fraud, including approximately $221,000 that has already been seized from his bank accounts.
Assistant U.S. Attorney Alicia Forbes is prosecuting the case after a joint investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation.
Between at least 2011 and 2018, Thompson embezzled money belonging to UWSRC while he was employed as its Executive Director. Thompson devised a complex scheme where he kept a portion of money intended for use to pay UWSRC’s regular bills and expenses by replacing it with other donation checks no one at UWSRC knew about. By conducting a series of complicated financial transactions to cover his tracks, Thompson embezzled over $650,000 from UWSRC.
Thompson maintained his scheme by making fraudulent misrepresentations to UWSRC’s board members and employees, its parent nonprofit United Way Worldwide, and bank personnel. He also took steps to prevent internal or external audits of UWSRC from occurring that would have uncovered his fraud. Thompson then failed to report to the Internal Revenue Service the extra income from his embezzlement scheme, which ranged from approximately $86,000 to $99,000 in a given year.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Union Treasurer Pleads Guilty to Embezzling at Least $82,000 in Union FundsRead the Press Release
Baltimore, Maryland – Annette Elizabeth Jones, age 45, of Port Deposit, Maryland, pleaded guilty today to bank fraud in connection with a scheme to embezzle funds from the labor union where she worked. Jones entered her guilty plea on May 7, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor - Management Standards; and Inspector General Kim R. Lampkins, Special Agent in Charge, Mid Atlantic Field Office, of the U.S. Department of Veterans Affairs.
According to her plea agreement, Jones is the former Treasurer of the American Federation of Government Employees (“AFGE”) Local Union 331, which represents approximately 760 employees of the Department of Veterans Affairs (VA) Medical Center in Perry Point, Maryland.
As detailed in her plea agreement, Jones executed two fraud schemes through which she embezzled at least $82,180.73 from the Union. First, from July 2012 through July 2015, Jones stole at least $80,944.80 in Union funds by forging her colleagues’ signatures on 335 Union checks that she wrote to herself and then cashed or deposited those checks at multiple financial institutions. Second, from January 2014 through July 2015, Jones used a Union-issued credit card to pay for $1,235.93 in personal expenses using Union funds on 20 separate occasions.
Jones admitted that she took steps to conceal the scheme from the Union. For example, not only did Jones have exclusive control of the Union’s checkbook, but she also maintained sole custody of a laptop computer that she was issued by the Union to manage its financial records on Union-purchased accounting software. In that software, Jones frequently recorded false information regarding the business purpose of the fraudulent Union checks she forged and negotiated, or recorded no information at all about the business purpose of such checks. Jones also provided false information about the Union’s finances to the Executive Board and the Union membership, caused reports to be submitted to the federal government that falsely certified the amount of money she received from the Union, and lied to the Union’s independent auditor.
Jones’ fraud was discovered in July 2015, when the Union’s Vice President overheard a phone call in which Jones attempted to purchase a smartphone for a family member using the credit card she had been issued to pay for Union expenses only. The Vice President then reported the conversation to the Union’s President. The President later conducted a search of Jones’s office and found two uncashed Union checks made payable to Jones on which it appeared that the President’s signature had been forged. The Union President then met with the manager of the bank where the Union’s account was held, and reviewed each of the checks to Jones that had been drawn on the Union’s account during the preceding three months. The Union President’s signature had been forged on all of them. When the manager provided the President with copies of the Union’s monthly credit-card account statements, the President also discovered that Jones had made a number of personal charges on her Union-issued card.
Jones was immediately removed from her position as Union Treasurer and resigned from the VA soon thereafter. Although Jones had agreed to return her Union-issued laptop at the time she was removed as Treasurer, Jones admitted that she never returned it.
As part of her plea agreement, Jones will be required to pay restitution in the full amount of the loss, which the parties agree is $82,180.73.
Jones and the government have agreed that, if the Court accepts the plea agreement, Jones will be sentenced to two years in federal prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 10, 2019 at 1:00 p.m.
United States Attorney Robert K. Hur commended the DOL and VA-OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Matthew J. Maddox, who are prosecuting the case.
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Former Union Treasurer Pleads Guilty to Embezzling at Least $82,000 in Union FundsRead the Press Release
Baltimore, Maryland – Annette Elizabeth Jones, age 45, of Port Deposit, Maryland, pleaded guilty today to bank fraud in connection with a scheme to embezzle funds from the labor union where she worked. Jones entered her guilty plea on May 7, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor - Management Standards; and Inspector General Kim R. Lampkins, Special Agent in Charge, Mid Atlantic Field Office, of the U.S. Department of Veterans Affairs.
According to her plea agreement, Jones is the former Treasurer of the American Federation of Government Employees (“AFGE”) Local Union 331, which represents approximately 760 employees of the Department of Veterans Affairs (VA) Medical Center in Perry Point, Maryland.
As detailed in her plea agreement, Jones executed two fraud schemes through which she embezzled at least $82,180.73 from the Union. First, from July 2012 through July 2015, Jones stole at least $80,944.80 in Union funds by forging her colleagues’ signatures on 335 Union checks that she wrote to herself and then cashed or deposited those checks at multiple financial institutions. Second, from January 2014 through July 2015, Jones used a Union-issued credit card to pay for $1,235.93 in personal expenses using Union funds on 20 separate occasions.
Jones admitted that she took steps to conceal the scheme from the Union. For example, not only did Jones have exclusive control of the Union’s checkbook, but she also maintained sole custody of a laptop computer that she was issued by the Union to manage its financial records on Union-purchased accounting software. In that software, Jones frequently recorded false information regarding the business purpose of the fraudulent Union checks she forged and negotiated, or recorded no information at all about the business purpose of such checks. Jones also provided false information about the Union’s finances to the Executive Board and the Union membership, caused reports to be submitted to the federal government that falsely certified the amount of money she received from the Union, and lied to the Union’s independent auditor.
Jones’ fraud was discovered in July 2015, when the Union’s Vice President overheard a phone call in which Jones attempted to purchase a smartphone for a family member using the credit card she had been issued to pay for Union expenses only. The Vice President then reported the conversation to the Union’s President. The President later conducted a search of Jones’s office and found two uncashed Union checks made payable to Jones on which it appeared that the President’s signature had been forged. The Union President then met with the manager of the bank where the Union’s account was held, and reviewed each of the checks to Jones that had been drawn on the Union’s account during the preceding three months. The Union President’s signature had been forged on all of them. When the manager provided the President with copies of the Union’s monthly credit-card account statements, the President also discovered that Jones had made a number of personal charges on her Union-issued card.
Jones was immediately removed from her position as Union Treasurer and resigned from the VA soon thereafter. Although Jones had agreed to return her Union-issued laptop at the time she was removed as Treasurer, Jones admitted that she never returned it.
As part of her plea agreement, Jones will be required to pay restitution in the full amount of the loss, which the parties agree is $82,180.73.
Jones and the government have agreed that, if the Court accepts the plea agreement, Jones will be sentenced to two years in federal prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 10, 2019 at 1:00 p.m.
United States Attorney Robert K. Hur commended the DOL and VA-OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Matthew J. Maddox, who are prosecuting the case.
Former Jefferson Parish Councilman Charged in 29-Count Indictment with Tax Evasion and Wire FraudRead the Press Release
NEW ORLEANS – The United States Attorney’s Office, Eastern District of Louisiana announced that CHRISTOPHER LORELL ROBERTS, JR., age 41, a resident of Gretna, Louisiana, was charged today in a 29-count Indictment with wire fraud, in violation of Title 18, United States Code, Section 1343, and tax evasion, in violation of Title 26, United States Code, Section 7201.
According to the Indictment, ROBERTS served as a member of the Jefferson Parish Council beginning in January 2004, first as a representative of District 1 and then as a Councilman-at-Large. In addition to receiving a salary of up to $112,000 as a councilman, ROBERTS earned income from a variety of other sources, including his part or full ownership of several business ventures, including CDS Enterprises, L.L.C. (“CDS Enterprises”), Mardi Market, The West Bank Beacon, LLC (the “West Bank Beacon”), fireworks stands, Baskin Robbins ice cream franchises, sno-ball stands, a photography business, and a consulting business. CDS Enterprises was the entity through which ROBERTS, among other things, owned and operated Baskin Robbins ice cream franchise locations. Mardi Market was a wholesaler of Mardi Gras-related merchandise, including throws (i.e., beads, doubloons, cups, etc.), apparel, and supplies, located in Gretna, Louisiana. The West Bank Beacon was a local monthly publication distributed throughout portions of the metropolitan New Orleans area. ROBERTS held an approximately twenty-five (25) percent ownership stake in the West Bank Beacon and was responsible for its business operations. ROBERTS also earned income in the form of gambling winnings.
In about October 2013, after the death of its owner, ROBERTS was hired to serve as the General Manager of Company A, a full-service landscaping and landscape management company headquartered in Terrytown, Louisiana, within the Eastern District of Louisiana, that specialized in providing various residential and commercial services, including deck and fence design, creation, and installation, as well as lawn mowing, tree trimming, and weeding. Company A’s new owner, the wife of its original owner, had no prior experience or involvement operating Company A or familiarity with running a business. ROBERTS was responsible for, among other things, the daily oversight, control, and operation of Company A and had signatory authority for and access to Company A’s bank accounts. Beginning not later than May 2014, ROBERTS began defrauding Company A in a number of ways, including by writing checks made payable to himself or entities whose bank accounts were under his control, including the West Bank Beacon and CDS Enterprises, and using Company A’s debit card, which drew on Company A’s bank accounts, to pay for goods and services that benefitted him personally.
ROBERTS engaged in a series of deceptive acts to disguise his behavior and to make the fraudulent transactions appear legitimate by various means. For example, ROBERTS wrote and issued checks drawn on Company A’s bank accounts that contained false descriptions in the checks’ memo lines. He also wrote and issued checks drawn on Company A’s bank accounts made payable to entities owned or controlled by ROBERTS, including CDS Enterprises and the West Bank Beacon, that purported to be related to legitimate expenditures or bill payments for Company A. Furthermore, ROBERTS sent text messages containing false information about the reason for payments to Company A’s owner. He also claimed that unauthorized payments were reimbursements for loans ROBERTS personally made to Company A and bills for Company A that ROBERTS had paid personally. Among the items ROBERTS purchased, in whole or in part, with money he obtained without authorization from Company A and unrelated to his employment with Company A, were a customized shipping container to use as a retail location for the operation of his fireworks business, three (3) remote-controlled drones, and a 2.01 carat diamond ring with a split shank and 84 additional diamonds surrounding the primary diamond that cost approximately $16,000, which ROBERTS used as an engagement ring.
Additionally, each year between Tax Year 2010 and Tax Year 2016, ROBERTS failed to report a substantial amount of the income he earned from multiple sources, including CDS Enterprises, the West Bank Beacon, Company A, and gambling winnings at casinos on his United States Individual Income Tax Return, Form 1040 (“Form 1040”). With the help of a certified public accountant, ROBERTS filed initial returns for Tax Years 2010, 2011, 2012, and 2013, in September 2015, during a contested re-election campaign. These returns underreported substantial income sources. Despite failing to declare many of these sources of income on his federal income tax returns, ROBERTS disclosed most of them on the personal financial disclosure statements he completed and filed annually with the Louisiana Board of Ethics.
In mid-2017, after ROBERTS learned of a federal criminal investigation into his federal income tax returns, he retained a different certified public accountant to prepare amended returns for Tax Years 2010, 2011, 2012, and 2013, as well as original federal income tax returns for Tax Years 2014, 2015, and 2016. While his amended returns reported significantly more income that the initial income tax return, ROBERTS withheld substantial income sources from his these returns, as well. For example, on September 14, 2015, ROBERTS filed his Tax Year 2013 federal income tax return in which he reported joint total income of $188,759. On January 11, 2018, after learning of the federal investigation, ROBERTS filed an amended return that reported his joint total income was $568,957.
If convicted, ROBERTS faces a maximum term of 475 years in prison, a fine of up to $6,200,000, up to three (3) years of supervised release after imprisonment, and a mandatory $100 special assessment per count.
The United States Attorney’s Office reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The United States Attorney’s Office praised the work of the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation in investigating this matter, with the assistance of the Metropolitan Crime Commission. Assistant United States Attorney Jordan Ginsberg, supervisor of the Public Corruption Unit, and Assistant United States Attorney Myles Ranier are in charge of the prosecution.
Former Intelligence Analyst Charged with Disclosing Classified InformationRead the Press Release
An indictment was unsealed today charging a former intelligence analyst with illegally obtaining classified national defense information and disclosing it to a reporter. Daniel Everette Hale, 31, of Nashville, Tennessee, was arrested this morning and will make his initial appearance today at the federal courthouse in Nashville. Assistant Attorney General for National Security John C. Demers, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia and Acting Special Agent in Charge Jennifer L. Moore of the FBI’s Baltimore Field Office made the announcement after the charges were unsealed.
According to the indictment, Hale was enlisted in the U.S. Air Force from July 2009 to July 2013, during which time he received language and intelligence training. While serving on active duty, Hale was assigned to work at the National Security Agency (NSA) and deployed to Afghanistan as an intelligence analyst. After leaving the U.S. Air Force, Hale was employed by a defense contractor and assigned to the National Geospatial-Intelligence Agency (NGA), where he worked as a political geography analyst between December 2013 and August 2014. In connection with his active duty service and work for the NSA, and during his time at NGA, Hale held a Top Secret//Sensitive Compartmented Information (TS//SCI) security clearance and was entrusted with access to classified national defense information.
According to allegations in the indictment, beginning in April 2013, while enlisted in the U.S. Air Force and assigned to the NSA, Hale began communicating with a reporter. Hale met with the reporter in person on multiple occasions, and, at times, communicated with the reporter via an encrypted messaging platform. Then, in February 2014, while working as a cleared defense contractor at NGA, Hale printed six classified documents unrelated to his work at NGA and soon after exchanged a series of messages with the reporter. Each of the six documents printed were later published by the reporter’s news outlet.
According to allegations in the indictment, while employed as a cleared defense contractor for NGA, Hale printed from his Top Secret computer 36 documents, including 23 documents unrelated to his work at NGA. Of the 23 documents unrelated to his work at NGA, Hale provided at least 17 to the reporter and/or the reporter’s online news outlet, which published the documents in whole or in part. Eleven of the published documents were classified as Top Secret or Secret and marked as such.
According to allegations in the indictment, in August 2014, Hale’s cell phone contact list included contact information for the reporter, and he possessed two thumb drives. One thumb drive contained a page marked “SECRET” from a classified document that Hale had printed in February 2014 and had attempted to delete from the thumb drive. The other thumb drive contained Tor software and the Tails operating system, which were recommended by the reporter’s online news outlet in an article published on its website regarding how to anonymously “leak” documents.
Hale is charged with obtaining national defense information, retention and transmission of national defense information, causing the communication of national defense information, disclosure of classified communications intelligence information, and theft of government property. Each charge carries a maximum penalty of 10 years in prison. 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.
Assistant U.S. Attorneys Gordon D. Kromberg and Alexander P. Berrang and Senior Trial Attorney Heather M. Schmidt of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former Intelligence Analyst Charged with Disclosing Classified InformationRead the Press Release
ALEXANDRIA, Va. – An indictment was unsealed today charging a former intelligence analyst with illegally obtaining classified national defense information and disclosing it to a reporter.
Daniel Everette Hale, 31, of Nashville, Tennessee, was arrested this morning and will make his initial appearance today at the federal courthouse in Nashville.
According to the indictment, Hale served as an enlisted airman in the U.S. Air Force from July 2009 to July 2013. After receiving language and intelligence training, Hale was assigned to work at the National Security Agency (NSA) and deployed to Afghanistan as an intelligence analyst. After leaving the U.S. Air Force in July 2013, Hale was employed by a defense contractor and assigned to the National Geospatial-Intelligence Agency (NGA), where he worked as a political geography analyst between December 2013 and August 2014. In connection with his active duty service and work for the NSA, and during his time at NGA, Hale held a Top Secret // Sensitive Compartmented Information (TS//SCI) security clearance and was entrusted with access to classified national defense information.
According to allegations in the indictment, beginning in April 2013, while enlisted in the U.S. Air Force and assigned to the NSA, Hale began communicating with a reporter. Hale met with the reporter in person on multiple occasions, and, at times, communicated with the reporter via an encrypted messaging platform. Then, in February 2014, while working as a cleared defense contractor at NGA, Hale printed six classified documents unrelated to his work at NGA and soon after exchanged a series of messages with the reporter. Each of the six documents printed were later published by the reporter’s news outlet.
According to allegations in the indictment, while employed as a cleared defense contractor for NGA, Hale printed from his Top Secret computer 36 documents, including 23 documents unrelated to his work at NGA. Of the 23 documents unrelated to his work at NGA, Hale provided at least 17 to the reporter and/or the reporter’s online news outlet, which published the documents in whole or in part. Eleven of the published documents were marked as Top Secret or Secret.
According to allegations in the indictment, in August 2014, Hale’s cell phone contact list included contact information for the reporter, and he possessed two thumb drives. One thumb drive contained a page marked “SECRET” from a classified document that Hale had printed in February 2014 and had attempted to delete from the thumb drive. The other thumb drive contained Tor software and the Tails operating system, which were recommended by the reporter’s online news outlet in an article published on its website regarding how to anonymously “leak” documents.
Hale is charged with obtaining national defense information, retention and transmission of national defense information, causing the communication of national defense information, disclosure of classified communications intelligence information, and theft of government property. Each charge carries a maximum penalty of 10 years in prison. 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, John C. Demers, Assistant Attorney General for National Security, and Jennifer L. Moore, Acting Special Agent in Charge of the FBI’s Baltimore Field Office, made the announcement after the charges were unsealed. Assistant U.S. Attorneys Gordon D. Kromberg and Alexander P. Berrang and Senior Trial Attorney Heather M. Schmidt of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
The FBI’s Memphis Division – Nashville Resident Agency provided significant assistance with the arrest operation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-59.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former Fenton housing authority director sentenced for embezzling more than $33,000Read the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced today that the former executive director of the Fenton housing authority, Gwen Jackson, 35, of Fenton, Louisiana, was sentenced to six months in prison by U.S. District Judge Donald E. Walter for embezzling more than $33,000 from the housing authority. She was also sentenced to three years of supervised release and must pay $33,000 in criminal restitution.
Jackson embezzled $33,194.76 from March 31, 2017 to September 20, 2017 while she was executive director of the Fenton Housing Authority. Jackson was hired as executive director in February of 2017 and was responsible for the day-to-day operations of the housing authority complex, which included access to business checks and the accounting ledger. After receiving complaints about the possible theft of funds, law enforcement agents interviewed Jackson and she confessed to fraudulently cashing numerous FHA checks for her personal benefit. She pleaded guilty to federal charges on January 9, 2019.
The U.S. Department of Housing and Urban Development, Office of Inspector General, and the Louisiana Legislative Auditor’s Office conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog prosecuted the case.
Former Doctor Sentenced to Prison for Unlawfully Dispensing Vicodin and Defrauding the University of Pittsburgh Medical Center Health PlanRead the Press Release
PITTSBURGH, Pa. - A former Pittsburgh radiologist has been sentenced in federal court to two years (24 months) in prison, three years’ supervised release, and order to pay a fine of $15,000 and restitution in the amount of $728 on his conviction of unlawfully distributing controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Omar A. Almusa, 46, of Pittsburgh, PA.
According to information presented to the court, Almusa, while he was employed as a radiologist at the University of Pittsburgh Medical Center, conspired to create and submit unlawful prescriptions for Vicodin, and then unlawfully dispensed those controlled substances to other persons without a legitimate medical purpose. Almusa also committed health care fraud by submitting fraudulent claims to UPMC Health Plan for payments to cover the costs of the unlawfully prescribed Vicodin.
Prosecuting medical professionals who illegally prescribe powerful painkillers without a legitimate medical purpose is another front in our fight against the opioid epidemic," U.S. Attorney Brady said. "We will continue to investigate and prosecute these corrupt doctors."
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
The investigation leading to the filing of charges in these cases was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic. This unit has investigated and prosecuted more corrupt health care professionals than any other U.S. Attorney’s Office in the country.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
Former Bank Officer Sentenced for Bank Fraud SchemeRead the Press Release
A Tulsa man was sentenced to federal prison Thursday as the result of a bank fraud scheme that cost his former employer, Firstar Bank of Tulsa, nearly $700,000.
Chief United States District Judge John E. Dowdell sentenced Blake Brian Ferguson, 37, of Broken Arrow, to 31 months in prison on three counts of bank fraud and one count of engaging in an unlawful monetary transaction to be followed by five years of supervised release on the bank fraud charges and three years of supervised release on the monetary transaction charge. All sentences run concurrently. The court further ordered Ferguson to pay $144,160 in restitution to the bank and individual victims affected by the fraudulent scheme.
“The integrity of the banking system is essential to the economic well-being of our community,” said U.S. Attorney Shores. “In this instance, a senior bank officer betrayed the trust and confidence placed in him by the bank, his staff, and customers. Mr. Ferguson’s sentence sends a signal to the marketplace that fraud will not be tolerated inside our financial institutions.”
In imposing sentence, the Court noted that Ferguson had manipulated customer lines of credit in order to obtain funds in the amount of $697,060 to support his gambling habit. At his plea hearing in 2017, Ferguson had admitted that, as an officer at the bank, he increased customer lines of credit to take funds from the loans for his own benefit, mostly to pay gambling debts. The bank was unaware of the fraudulent purpose underlying the loan transactions. Ferguson’s scheme lasted from January 2013 to September 2015.
Ferguson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prison facility in June 2019.
The FBI, Internal Revenue Service-Criminal Investigation, and the Federal Deposit Insurance Corporation /Office of Inspector General, investigated the case. Assistant U.S. Attorney Kevin C. Leitch prosecuted the case.
Florida Man Sentenced to Prison for Role in Scheme to Fraudulently Process Credit Card PaymentsRead the Press Release
PITTSBURGH - A Florida resident has been sentenced in federal court to two years and 10 months in prison and three years of supervised release on his conviction of conspiracy to commit mail fraud, wire fraud and bank fraud, United States Attorney Scott W. Brady announced today.
United States District Judge David Stewart Cercone imposed the sentence yesterday on Gennady Nudelman, 43, of Delray Beach, Florida.
According to information presented to the court, Nudelman participated in a sophisticated fraud scheme related to the fraudulent processing of credit card payments. The credit card companies will not allow their products and services to be used to pay for certain precluded activities, including the on-line sales of pharmaceutical drugs, including drugs that require prescriptions. The defendant participated in the conspiracy designed to conceal from the credit card companies the fact they used their products and services to pay for precluded activities and to subvert the internal controls the credit card companies had in place to detect and prevent this type of activity.
The fraud involved establishing shell corporations and web sites associated with the shell companies that falsely claimed that they sold products other than pharmaceutical drugs or products that violated trademark infringement laws. The conspirators then applied for merchant accounts from the credit card companies in the names of the shell corporations and the fake web sites. Once the merchant accounts were established, they were used to process payments for pharmaceutical drugs or products that violated trademark infringement laws. Additionally, the conspirators arranged for the credit card statements sent to the consumers to have the names of the shell corporations and telephone numbers. The conspirators set up a telephone bank to receive calls from customers questioning billings on their credit card statements, and the conspirators explained to the customers the true nature of the transactions in hopes of avoiding charge-backs that could cause the credit card companies to question the legitimacy of the transactions. Nudelman operated a business in Florida that specialized in using this complex fraud scheme to process payments primarily for pharmaceutical drugs that required prescriptions, but were sold to consumers in the United States through overseas websites without a prescription.
Assistant U.S. Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Brady commended the Food and Drug Administration – Office of Criminal Investigations, Homeland Security Investigations, Pennsylvania State Police and United States Postal Inspection Service for the investigation leading to the successful prosecution of Nudelman.
Five Canton men indicted for stealing 22 firearms from Canton gun storeRead the Press Release
Five Canton men were indicted in federal court for allegedly stealing dozens of guns from a firearms store in Canton in February.
Four of the defendants were also indicted on charges of conspiring to steal firearms from another Canton firearms store.
Robert Clark, Jr., 18, Marquelis Thomas, 21, Shymeik Barkley, 18, God Gibson, 18, and Jamaryon Frazier, 18, were each indicted on one count of theft of firearms from a licensed firearms dealer.
Clark, Thomas, Gibson and Frazier are also indicted on one count of conspiracy to commit theft of firearms from a licensed firearms dealer.
The five men are accused of stealing 22 firearms from Elite Security Consultants LLC on February 2, 2019.
Clark, Thomas, Gibson and Frazier are also accused of conspiring to steal firearms from Stark Arms on February 2, 2019. The men parked at Stark Arms, on Cleveland Avenue S.W., wearing gloves and covering their faces and attempted to gain entry by throwing a heavy metal object at the business’s window, according to the indictment.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, Canton Police Department and Stark County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Aaron P. Howell.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. – United States Attorney Trent Shores announced today the results of the May 2019 Federal Grand Jury.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Brandon Michael Browning. Felon in Possession of a Firearm and Ammunition; Possession of Methamphetamine With Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Browning, 35, of Claremore, is charged with being a felon in possession of a Rohm .22 caliber revolver and associated ammunition. He is further charged with possessing methamphetamine with intent to distribute and with possessing a firearm in furtherance of a drug trafficking crime. The Claremore Police Department, Rogers County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration are the investigative agencies.
Isidro Campos, Jose Antonio Ramirez-Lopez, Emilio Torres. Drug Conspiracy; Interstate Travel in Aid of Racketeering. Campos, 26, of Bell Gardens, California; Ramirez-Lopez, 22, of Phoenix, Arizona; and Torres, 30, of Huntington Park, California are charged with conspiring to distribute 500 grams of methamphetamine. Campos and Torres are further charged with traveling across state lines, from California to Oklahoma, to promote, manage, establish and carry on their alleged methamphetamine conspiracy. The Oklahoma Highway Patrol and Drug Enforcement Administration are the investigative agencies.
Sebastian Cobelo. Possession of Methamphetamine With Intent to Distribute (2 Counts); Possession of a Firearm in Furtherance of a Drug Trafficking Crime (2 Counts). Cobelo, 43, of Broken Arrow, is charged with possessing with intent to distribute 500 grams or more of methamphetamine and possession with intent to distribute 50 grams or more of methamphetamine. He is further charged with possessing a firearm in furtherance of a drug trafficking crime. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Robert Sean Thomas Davis. Attempted Coercion and Enticement of a Minor. Thomas, 26, of Owasso, is charged with using a cell phone and social media apps to knowingly attempt to entice a minor to meet and engage in sexual activity. The FBI and Tulsa Police Department are the investigative agencies.
Harold Dewey Delonia, III, Whitney Nichole Parker. Felon in Possession of Firearm; Felon in Possession of Firearm and Ammunition (2 Counts); Transfer of Firearm to Prohibited Person. Delonia, 24, of Okmulgee, is charged with being a felon in possession of a Taurus 9 mm Luger pistol, a Glock .40 S&W caliber pistol, a Ruger 9mm Luger pistol and associated ammunition. Parker, 28, of Tulsa, is charged with transfer of a firearm to a prohibited person. On Nov. 10, 2018, Parker allegedly transferred the Taurus 9 mm Luger pistol to Delonia knowing he was a felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigative agency.
Raytjuan Laquai Edwards. Felon in Possession of Firearm and Ammunition; Possession of a Firearm and Ammunition While Subject to a Domestic Violence Protective Order; Obstruction of Justice by Tampering with A Witness. Edwards, 39, of Tulsa, is charged with being a felon in possession of a Forjas Taurus .357 Magnum and various ammunition. Edwards was previously convicted five times on gun and drug distribution charges. Edwards is further charged with possessing a firearm while subject to a domestic violence protective order. A protective order was issued on Nov. 5, 2018, restraining Edwards from harassing, stalking and threatening an intimate partner and the partner’s child or from engaging in any conduct that would place the two in reasonable fear of bodily injury. Finally, Edwards is charged with obstructing justice by tampering with a witness. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Kevin Ryan Evraets. Sale of a Firearm to a Prohibited Person; Dealing Firearms Without a License. Evraets, 33, of Broken Arrow, is charged with knowingly selling a Ruger .40 caliber pistol to an individual who was a convicted felon. He is further charged with dealing firearms without a license from July to December 2018 in the Northern District of Oklahoma. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Raymond Mark Hamilton. Felon in Possession of a Firearm. Hamilton, 62, of Tulsa, is charged with being a felon in possessing a Smith and Wesson semi-automatic pistol and associated ammunition. Hamilton has 10 previous felony convictions. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Braden Kial Johnson. Bank Fraud. Johnson, 23, of Bixby, is charged with executing a scheme to fraudulently obtain money from RCB Bank from Dec. 7, 2018 to Feb. 9, 2019. Johnson was a treasurer for a Claremore youth sports association where he allegedly drafted unauthorized checks from the association’s bank account, making the checks payable to himself then forging the signature of the former treasurer. He would then cash the checks. As part of the scheme, Johnson allegedly forged approximately 18 checks and fraudulently obtained at least $22,368.50. The Claremore Police Department and FBI are the investigative agencies.
Nabrai Lyntrel Lyons. Drug Conspiracy; Attempted Possession of Fentanyl with Intent to Distribute; Possession of Fentanyl with Intent to Distribute; Importation of a Controlled Substance - Fentanyl; Possession of Firearm in Furtherance of Drug Trafficking Crimes; Smuggling Goods into the United States. Lyons, 24, of Tulsa, is charged with conspiring with others to distribute and to possess with intent to distribute fentanyl; knowingly attempting to possess with intent to distribute fentanyl; knowingly possessing with intent to distribute fentanyl; importing a controlled substance into the United States not pursuant to Attorney General regulations; and receiving merchandise she knew to have been smuggled into the United States. Finally, Lyons is charged with possessing a Taurus 9 mm caliber pistol in furtherance of drug trafficking crimes. The Oklahoma Bureau of Narcotics, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and Tulsa County Sheriff’s Office are the investigative agencies.
Timothy Dwayne Parker. Attempted Coercion and Enticement of a Minor. Parker, 53, of Sapulpa, is charged with using his cell phone to knowingly attempt to entice a minor to engage in sexual activity. The Sapulpa and Bristow Police Departments are the investigative agencies.
Kevin Glenn Petty. Theft of Government Property; Aggravated identity Theft. Petty, 54, of Sand Springs was charged with theft of government property and fraudulently using another individual’s identity in pursuit of his crime. Petty allegedly filed fraudulent 2016 income tax returns under the name of taxpayer Woodson J. Nightwalker. The $3,800 tax refund amount was deposited into a Green Dot card account, which funded a Green Dot pre-paid debit account. Petty allegedly filed five additional fraudulent returns, which were intercepted by the IRS. The six false returns filed by Petty sought a total of $12, 303 in fraudulent refunds. The case was investigated by special agents of IRS-Criminal Investigation and the U.S. Postal Inspector.
James Thomas Saunders, Jr. Possession of Methamphetamine with Intent to Distribute; Possession of Firearms in Furtherance of a Drug Traffkicking Crime; Felon in Possession of Firearms and Ammunition. Saunders, 29, of Tulsa, is charged with possessing with intent to distribute methamphetamine, with possessing firearms to further his methamphetamine distribution, and being a felon in possession of a Lorcin 9 mm, 9x19mm caliber semi-automatic pistol, a Mossberg 12 gauge shotgun and various ammunition. Saunders had eight previous felony convictions. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Canado Lopez Smith. Felon in Possession of Firearm and Ammunition, Possession of Marijuana with Intent to Distribute, Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Smith, 46, of Tulsa, is charged with being a felon in possession of a Phoenix Arms .22 long rifle caliber semi-automatic pistol and associated ammunition. He is further charged with possession with intent to distribute marijuana and possession of a firearm to further his drug trafficking crime. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Lance Thomas Weaver. Possession of Methamphetamine with Intent to Distribute. Weaver, 46, of Pryor, is charged with possessing with intent to distribute 50 grams or more of methamphetamine. The Delaware County Sheriff’s Office is the investigative agency.
Fayetteville Man Convicted of Firearm ChargesRead the Press Release
NEW BERN - United States Attorney Robert J. Higdon, Jr. announced that, DELTON WARREN, 55, of Fayetteville was convicted in federal court following a 2-day trial before United States District Judge Louise W. Flanagan. The jury found WARREN guilty of felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime.
The jury heard evidence that WARREN distributed cocaine and crack cocaine from February 2017 to April 2017 and, during that time period, the Fayetteville Police Department utilized a confidential informant to make four undercover purchases of crack cocaine from WARREN. As the investigation continued, Officers obtained a search warrant for WARREN’s residence. WARREN was arrested and was found to be in possession of crack cocaine. Inside the residence, Officers found a large quantity of crack cocaine, powder cocaine and a large amount of currency. In close proximity to the drugs and money, Officers found a loaded handgun ready to be fired.
WARREN faces a maximum sentence of life imprisonment followed by 5 years of supervised release at his sentencing hearing at a later date.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Fayettteville Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorneys Jane Jackson and Chad Rhoades handled the prosecution of this case for the government.
Former Dona Ana County Doctor Sentenced to 108 Months for Conviction on Unlawful Distribution of Prescription Painkillers and Health Care Fraud ChargesRead the Press Release
Physician’s Medical License Revoked in 2012
ALBUQUERQUE – Pawankumar Jain, 66, a former physician, was sentenced today in federal court in Las Cruces, N.M., to 108 months in prison and three years of supervised release for unlawfully dispensing controlled substances and health care fraud. The sentence was announced by U.S. Attorney John C. Anderson, Special Agent in Charge Kyle W. Williamson of the DEA’s El Paso Division, and Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division.
Jain previously entered guilty pleas on Feb. 11, 2016, to one count of unlawfully dispensing a controlled substance and one count of health care fraud. In his plea agreement, Jain admitted that he previously was licensed to practice medicine in the State of New Mexico and was registered with the DEA to prescribe controlled substances, including pain medication. Jain admitted that for several years he operated a high-volume “pain management” practice in Las Cruces, and frequently performed only “cursory” examinations of his patients before prescribing narcotics to them without documenting any therapeutic benefit for those drugs in his records.
Jain specifically admitted examining one patient on Nov. 25, 2009, who is identified in the indictment as “M.E.B.” Jain admitted that he conducted only a superficial examination of M.E.B. before writing M.E.B. two prescriptions for methadone that were outside the usual course of medical practice and not for any legitimate medical purpose. Each prescription was for 270 tablets of 10 mg methadone. Jain further admitted that he committed health care fraud because he knew these unlawful prescriptions would be submitted to Medicare for payment and that he intended for Medicare to pay for the prescriptions.
Jain also acknowledged that M.E.B. died two days after filling the second methadone prescription. According to evidence at the sentencing hearing, M.E.B. died of respiratory depression due to the methadone Jain prescribed. The New Mexico Medical Board suspended Jain’s license in June 2012, and revoked his license in Dec. 2012.
“The U.S. Attorney’s Office and our law enforcement partners are committed to working together to aggressively target and hold drug traffickers accountable – both those who distribute on the street, and those who traffic as physicians writing prescriptions for no legitimate medical purpose,” said U.S. Attorney John C. Anderson. “Doctors who betray our trust and put their own financial gain ahead of the well-being of their patients by prescribing narcotics without medical justification are directly fueling our nation’s opioid crisis.”
“Doctors take an oath to treat and care for patients who come to them for help,” stated Special Agent in Charge Kyle W. Williamson of the DEA’s El Paso Division. “Dr. Jain ignored this oath and continued to overprescribe, which eventually resulted in the deaths of four patients. His sentencing today will send a message to other doctors that they are not above the law and DEA will continue to forcefully pursue and hold them accountable.”
“Patients must be able to trust their physician,” said Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division. “This doctor not only violated that trust but defrauded federal health care programs that many consumers depend on. The FBI hopes this case sends a message that this kind of criminal behavior by someone who should have put his patients’ well-being first will not be tolerated. We congratulate the DEA, U.S. Attorney's Office, the New Mexico Medical Board, and the New Mexico Board of Pharmacy on a successful prosecution.”
This case was investigated by the DEA’s Tactical Diversion Team in El Paso, Texas and the FBI’s Healthcare Fraud Unit with assistance from the New Mexico Medical Board and the New Mexico Board of Pharmacy. The case was prosecuted by Assistant U.S. Attorneys Sarah M. Davenport and Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
The U.S. Attorney’s Office prosecuted this case as part of the Department of Justice’s commitment in partnership with other law enforcement to combat the illegal manufacturing and distribution of methamphetamine, heroin and prescription opioids and to establish new programs to provide services to victims of the opioid crisis.
El Paso Man Sentenced to 20 Years in Federal Prison for Receipt and Distribution of Child PornographyRead the Press Release
In El Paso this morning, 30-year-old Irving Marquez was sentenced to the statutory maximum 20 years in federal prison for receiving and distributing child pornography, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Jack P. Staton, El Paso.
In addition to the prison term, U.S. District Judge David C. Guaderrama ordered that Marquez pay $3,200 restitution to four victims and be placed under supervised release for life after completing his prison term.
In March 2017, the National Center for Missing and Exploited Children (NCMEC) notified HSI agents that potential child pornography was located on a Flickr account operated by the defendant. Federal authorities subsequently located images and videos of child pornography on the account and on numerous devices belonging to the defendant, including his personal computer and multiple cell phones. A forensics examination of the seized materials revealed the presence of hundreds of videos and images depicting minors engaged in sexually explicit activity. On August 22, 2018, Marquez pleaded guilty to the charge of receiving and distributing child pornography.
“This sentence is fitting of the crime, and we owe it to the youngest victims of these heinous acts to ensure that the perpetrators pay a high price for their offenses,” said Jack P. Staton, special agent in charge of HSI El Paso. “HSI special agents remain committed to identifying and arresting child predators.”
HSI agents in El Paso conducted this investigation. Assistant U.S. Attorney Mallory Rasmussen prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.
East Brookfield Man Charged with illegally Operating a Helicopter from BackyardRead the Press Release
BOSTON – An East Brookfield man was arrested today and charged in federal court in Worcester in connection with unlawfully operating an aircraft and making false statements to federal investigators.
Antonio Santonastaso, 59, was charged by criminal complaint with one count of serving as an airman without an airman certificate and one count of making false statements to federal agents. Santonastaso will appear in federal court in Worcester this afternoon.
According to the charging document, the Federal Aviation Administration (FAA) revoked Santonastaso’s license to pilot an aircraft in 2000, after he participated in the theft of a helicopter from Norwood Memorial Airport. Despite being aware of that revocation, Santonastaso operated a Robinson R-22 helicopter – taking off and landing from his backyard – more than 50 times between April 28, 2018 and Nov. 11, 2018. FAA inspectors reviewed the path Santonastaso used when taking off and landing from his backyard, and concluded that it was extremely hazardous.
When questioned by the FAA and federal agents, Santonastaso repeatedly made false statements regarding his eligibility to pilot the helicopter. Among other things, Santonastaso falsely claimed to have not learned that the FAA had revoked his license, and made false statements regarding his applications for a medical certificate, which is required in order to operate an aircraft.
The charging statutes provide for a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation, Office of the Inspector General, made the announcement. Assistant U.S. Attorney Evan Panich of Lelling’s Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Drug Traffickers Sentenced to 20 Years Combined in Federal Prison for Possession with Intent to Distribute Methamphetamine and Firearms PossessionRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Dustin Slack, age 33, of Bentonville, Arkansas, was sentenced yesterday to 130 months in federal prison followed by three years of supervised release, on one count of Possession with Intent to Distribute Methamphetamine and Douglas Prince, age 50, of Centerton, Arkansas, was sentenced today to 120 months in federal prison followed by four years of supervised release, on one count of Possession with Intent to Distribute Methamphetamine and Felon in Possession of a Firearm. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, on July 17, 2018, officers with the Benton County Sheriff's Office attempted to serve an arrest warrant on Slack and another individual. Upon arrival at the residence where Slack was residing, which was located within the Western District of Arkansas, Fayetteville Division, officers made contact with Slack and placed him under arrest. During the arrest officers located methamphetamine on Slack’s person. A search of the residence resulted in officers locating an additional 162.4 grams of methamphetamine. Shortly thereafter, a white Jaguar, driven by Prince and occupied by another individual, pulled up to the residence, at which point they were removed from the vehicle and detained. A canine positively alerted to the vehicle for the presence of narcotics. A subsequent search of the vehicle revealed 234 grams of methamphetamine and a loaded .45 caliber pistol.
Slack and Prince were indicted by a federal grand jury in September 2018 and entered guilty plea’s in January 2019.
This case was investigated by the Benton County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney’s David Harris and Dustin Roberts prosecuted the case for the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Drug Trafficker Sentenced to 60 Months in Prison for Conspiring to Distribute Heroin, Cocaine and Marijuana Across New York CityRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Robert Santos, a member of a Bronx-based drug trafficking ring, was sentenced by United States District Judge Frederic Block to 60 months’ imprisonment, to be followed by four years’ supervised release, based on his February 2018 guilty plea to participating in a conspiracy to distribute 100 grams or more of heroin, 500 grams or more of cocaine, and marijuana.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, Angel M. Melendez, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Keith M. Corlett, Acting Superintendent, New York State Police (NYSP), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Robert Santos has been deservedly punished with prison time for playing a critical role in a drug trafficking operation, delivering dangerous drugs on our streets and lining his pockets with the illicit proceeds,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will continue to work vigorously to stop the flow of illegal and dangerous drugs onto our streets.”
Between July 2016 and March 2017, Santos and other members of the drug ring distributed large amounts of heroin, cocaine and marijuana throughout New York City, including to out-of-state customers. At the time of Santos’s arrest, DEA special agents seized quantities of those controlled substances, a kilogram press and other drug paraphernalia in his Bronx apartment.
Two co-defendants, John Santos and Kevin Brito, previously pleaded guilty. John Santos was sentenced to 121 months’ imprisonment on January 18, 2019. Kevin Brito is awaiting sentencing.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Ryan C. Harris is in charge of the prosecution.
The Defendant:
ROBERT SANTOS
Age: 40
Bronx, New YorkE.D.N.Y. Docket No. 17-CR-147
Dominican National Pleads Guilty to Social Security Fraud and Identity TheftRead the Press Release
BOSTON – A Dominican national residing in Lynn pleaded guilty yesterday in federal court in Boston to Social Security fraud and aggravated identity theft.
Nelson Bolivar, 54, pleaded guilty to one count of false representation of a Social Security number and one count of aggravated identity theft. U.S. District Court Judge Denise J. Casper scheduled sentencing for June 20, 2019. Bolivar was arrested and charged in a July 2018 federal law enforcement sweep of 25 individuals accused of document and benefit fraud.
Dubbed “Double Trouble,” the July 2018 investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), comprised of local, state and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
On July 13, 2015, Bolivar, a citizen of the Dominican Republic, applied for a Massachusetts Identification Card using the name and Social Security number of a Puerto Rican citizen. He presented a Puerto Rican birth certificate and a Social Security card in the other person’s name to the Massachusetts Registry of Motor Vehicles as proof of his identity. Based on the application and supporting identity documents, Bolivar was issued an identification card in the name of the Puerto Rican citizen. Bolivar also used the name and Social Security number of a Puerto Rican citizen to receive MassHealth benefits.
The charge of false representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Massachusetts State Auditor Suzanne M. Bump made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Doctor and Physical Therapist Found Guilty of Participating in $30 Million Scheme to Defraud Medicare and MedicaidRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that medical doctor PAUL J. MATHIEU and physical therapy doctor HATEM BEHIRY were each found guilty of participating in a $30 million scheme to defraud Medicare and the New York State Medicaid Program. The defendants were convicted following a six-week jury trial before U.S. District Judge Lorna G. Schofield.
U.S. Attorney Geoffrey S. Berman said: “These corrupt doctors betrayed their medical training, their professions, and their Medicare and Medicaid billing privileges. They chose not to heal, but to harm, the taxpaying public – the real victims of this scheme.”
According to the evidence presented during the trial and statements made in related court filings and proceedings:
Between 2007 and 2013, MATHIEU fraudulently posed as the owner of three of six medical clinics in Brooklyn (the “Clinics”), which were all in fact owned by co-conspirator Alexksandr Burman. During that time period, the Clinics fraudulently billed Medicare and Medicaid approximately $30 million for medical services and supplies that were medically unnecessary and/or not provided. Throughout this time period, MATHIEU fraudulently posed as the owner of three of those clinics, in order to satisfy a New York State law requirement that medical clinics must be owned and operated by a medical professional.
For the last three-and-a-half years of the scheme, MATHIEU also directly participated in the fraudulent billing practices of the Clinics, by visiting several of the Clinics on a weekly basis, where he would sign stacks of false and fraudulent medical charts, and issue referrals for expensive additional testing, occupational therapy, and physical therapy, including for physical therapy purportedly provided by defendant BEHIRY. During this time period, MATHIEU saw no patients at all, simply falsifying enormous stacks of phony medical records falsely stating that he had seen and treated such patients.
BEHIRY similarly participated in the fraudulent billing practices of the Clinics, by pretending to provide physical therapy to many of those same patients, most of whom were receiving cash kickbacks for coming to the Clinics. In fact, BEHIRY was engaged in an empty charade designed to create the appearance of physical therapy, while almost no therapy was actually being provided to many patients. To further the fraud, BEHIRY also prepared and oversaw the preparation of a huge quantity of phony medical and billing records. Among other things, BEHIRY completed thousands of fabricated reports, in which patients were described almost identically, and with little or no regard for actual medical conditions or needs. As with MATHIEU, many of the charts were for patients whom BEHIRY and his team had not evaluated or provided therapy to at all.
In addition to his role in the Clinics, MATHIEU also wrote unneeded prescriptions for adult diapers and other incontinence products, which were filled at Universal Supply Depot, a medical supply company also owned by Burman’s wife. MATHIEU was so prolific in this regard that, throughout the period of the fraud, he was regularly a top prescriber of adult diapers in the State of New York. MATHIEU continued to write such prescriptions, even after the Clinics were closed down because Medicare stopped paying any of the clinics’ claims.
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PAUL J. MATHIEU, 53, of Morristown, New Jersey, and HATEM BEHIRY, 51, of Brooklyn, New York, were each convicted of one count each of conspiracy to commit health care fraud, mail fraud, and wire fraud; and conspiracy to make false statements relating to a health care program; as well as the substantive offenses of health care fraud, mail fraud, and wire fraud. The conspiracy to commit health care fraud, mail fraud and wire count, and the substantive mail fraud and wire fraud counts each carry a maximum sentence of 20 years in prison. The substantive health care fraud count carries a maximum sentence of 10 years in prison, and the conspiracy to make false statements relating to health care carries a maximum sentence of five years in prison. Each count also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the Court.
MATHIEU and BEHIRY bring to 15 the number of defendants convicted in this and related cases. The other defendants include: Aleksandr Burman, 57, the leader of the scheme, who was sentenced in a related case on May 8, 2017, to 120 months in prison; Marina Burman, 56, the former wife of Aleksandr Burman and the owner of Universal Supply Depot, was sentenced on May 17, 2018, to 36 months in prison; Mustak Y. Vaid, 45, a physician, was sentenced on August 1, 2018, to 18 months in prison; Ewald J. Antoine, 68, a physician, was sentenced on August 21, 2018, to 18 months in prison; Asher Oleg Kataev, 50, a Burman business partner, was sentenced on May 31, 2018, to 36 months in prison; Alla Tsirlin, 49, a Clinic office manager, was sentenced on June 5, 2018, to a year and a day in prison; and Edward Miselevich, 46, and Ivan Voychak, 39, Burman partners who jointly ran a related ambulette company, were sentenced on June 12, 2018, and July 19, 2018, respectively, to 36 months in prison each. In addition, Lina Zhitnik, 52, and Dina Cabana Rubenstein, 39, occupational therapists, Valery Volsky, 60, a bookkeeper, Olga Kharuk, 47, and Natalya Grabovskaya, 48, office managers, have each also pled guilty for their participation in this scheme and are awaiting sentencing.
Mr. Berman praised the outstanding work of the Federal Bureau of Investigation, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the New York State Office of the Medicaid Inspector General.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis, Stephen J. Ritchin, and Timothy V. Capozzi are in charge of the prosecution.