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8 May 2019
Peruvian Man Pleads Guilty to Operating Spanish-Speaking Call Center that Threatened and Extorted U.S. ConsumersRead the Press Release
A resident of Lima, Peru, pleaded guilty today to extortion for operating call centers that threatened Spanish-speaking victims in the United States, the Justice Department and U.S. Postal Inspection Service announced.
Omar Portocarrero Caceres, 39, was extradited from Peru in April and pleaded guilty in the U.S. District Court for the Southern District of Florida. The charges against Portocarrero allege that he owned and operated a call center in Peru that falsely told Spanish-speaking victims across the United States that they had incurred debts and would suffer various consequences for failure to pay off the debts that they did not, in fact, owe.
“The Department of Justice is committed to identifying and prosecuting criminals who target and extort consumers in the United States,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Those who threaten U.S. consumers by phone cannot escape justice by placing their calls from abroad. Working with our international partners, we will bring them to justice no matter where they reside. I thank the Republic of Peru for extraditing the defendants in this case to face justice in our courts.”
Portocarrero and his co-conspirators in Peru contacted U.S. consumers, many of whom were elderly and vulnerable, using Internet-based telephone calls. Claiming to be attorneys and government representatives, the callers falsely told victims that they had failed to pay for or receive a delivery of products. The callers also falsely threatened victims with lawsuits, negative marks on their credit reports, imprisonment, or immigration consequences if they did not immediately pay for the purportedly delivered products and “settlement fees.” Many victims made monetary payments based on these baseless threats.
“If an individual who claims to be an attorney or government representative calls and instructs you to pay money to: receive products you did not buy; avoid a lawsuit; avoid imprisonment; or avoid a change in immigration status, hang up and immediately report that threat to www.ftccomplaintassistant.gov,” said U.S. Attorney for the Southern District of Florida Ariana Fajardo Orshan. “I thank the Republic of Peru for extraditing the defendants in this case and the U.S. Postal Inspection Service for their unwavering commitment to investigate and pursue those who threaten U.S. consumers.”
“The U.S. Postal Inspection Service will not allow overseas criminal enterprises to illegally enrich themselves by using the U.S. Mail to defraud U.S. consumers,” said U.S. Postal Inspector in Charge Antonio J. Gomez. “With the continued cooperation of law enforcement colleagues in countries like Peru, these criminals will be aggressively pursued and brought to justice.”
Portocarrero is the second defendant to plead guilty in connection with the scheme. Three of his co-defendants have been detained pending trial before U.S. District Court Judge Roy K. Altman in Fort Lauderdale. Judge Altman has scheduled their trial to begin on June 10, 2019.
Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch is prosecuting the case. The Postal Inspection Service investigated the case. The Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
Ohioans turned in 50,000 pounds of prescription medication as part of DEA National Prescription Drug Take Back DayRead the Press Release
With enthusiastic participation nationwide, DEA and its law enforcement partners have now collected nearly 12 million pounds of unused or expired prescription medications over the course of 17 successful DEA National Prescription Drug Take Back events. During the 17th semiannual event on April 27, the Take Back initiative saw new records for the numbers of law enforcement partners, collection sites. Together with these local, state, tribal and federal partners – more than 5,000 total – at nearly 6,400 collection sites, DEA collected and destroyed close to 469 tons of potentially dangerous unwanted drugs.
This brings the total amount of drugs collected by DEA since the fall of 2010 to 11,816,393 pounds, or 5,908 tons.
The Detroit Field Division, servicing Michigan and Ohio collected a total of 75,514 pounds of unused, unwanted or expired prescription drugs. The state of Michigan collected 23,692 pounds and the state of Ohio 50,821 pounds.
“We know of many cases where leftover pain pills have led to an opioid addiction,” U.S. Attorney for the Northern District of Ohio Justin Herdman said. “Properly disposing of these pills is one important step anyone can take to get involved in turning the tide on the opioid epidemic that has caused so much pain here in Ohio.”
National Prescription Drug Take Back Day events have been extremely successful not only in getting unused drugs out of the house, but also in raising awareness of their link to addiction and overdose deaths. The public has embraced the opportunity these events provide to remove medicines languishing in the home that are highly susceptible to misuse, abuse and theft. Public demand for safe and secure drug disposal has also resulted in a significant increase in year-round drug drop boxes at law enforcement facilities, pharmacies, and elsewhere, making drug disposal even more convenient.
Complete results for DEA’s spring Take Back Day are available at www.DEATakeBack.com. Video of DEA’s Take Back Day collections being weighed and destroyed is available at https://youtu.be/5y_LCuJvWRs.
DEA’s next National Prescription Drug Take Back Day is October 26, 2019.
Oakland Resident Indicted on Five Bank Robberies Across the Bay AreaRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Duane Kurt Makela on charges he committed five bank robberies in the San Francisco Bay Area, announced Adam A. Reeves, Attorney for the United States acting under authority conferred by 28 U.S.C. § 515, and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
According to the indictment filed yesterday and unsealed this morning, between October 19, 2018, and February 4, 2019, Makela, 49, of Oakland, used force, violence, and intimidation, to rob a credit union and four banks. The robberies, four of them armed, occurred on the following dates and locations:
- October 19, 2018 – Meriwest Credit Union in Mountain View, Calif.
- October 22, 2018 – Chase Bank in South San Francisco, Calif.
- November 5, 2018 – U.S. Bank in Alameda, Calif.
- December 23, 2018 – U.S. Bank in Castro Valley, Calif.
- February 4, 2019 – Wells Fargo Bank in Palo Alto, Calif.
Makela allegedly stole a total of $33,301.00 from the credit union and banks. With regard to the first four incidents, Makela was charged with armed bank robbery, in violation of 18 U.S.C. § 2113(a) and (d). For the last incident, Makela was charged with bank robbery, in violation of 18 U.S.C. § 2113(a).
An indictment merely alleges that crimes have been committed and Makela, like all defendants, is presumed innocent until proven guilty beyond a reasonable doubt. The defendant faces a maximum statutory penalty of 25 years in prison for each of the four armed bank robbery charges and 20 years in prison for the remaining bank robbery charge. Additional fines, forfeitures, restitution, and special assessments may also be imposed. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Makela appeared before U.S. Magistrate Sallie Kim today for his initial appearance and arraignment. Magistrate Judge Kim ordered Makela to be held in federal custody pending the outcome of the case. Makela’s next appearance is scheduled for May 23, 2019, at 1:30 p.m., before the Honorable William H. Orrick, U.S. District Judge.
Assistant U.S. Attorney Nicholas Walsh is prosecuting the case with the assistance of Margoth Turcios. The prosecution is the result of investigations by the FBI with assistance from the police departments of Mountain View, South San Francisco, Alameda, and Palo Alto, as well as the Alameda County Sheriff’s Office.
Nigerian Man Pleads Guilty to Role in $8.3 Million Medicare Fraud Scheme and Related Money LaunderingRead the Press Release
A Nigerian man pleaded guilty today for his role in a durable medical equipment (DME) scheme that fraudulently billed more than $8 million dollars to Medicare for DME that was not medically necessary.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Special Agent in Charge Christian J. Schrank of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Los Angeles Region, Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division and Acting Special Agent in Charge Ryan L. Korner of the IRS Criminal Investigations (IRS-CI) Los Angeles Field Office made the announcement.
Ayodeji Temitayo Fatunmbi, 47, pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering before U.S. District Judge Christina A. Snyder of the Central District of California. Fatunmbi was extradited from Nigeria to the Central District of California in October of 2018 on charges contained in a May 2013 indictment. Sentencing has been scheduled for Aug. 19, 2019 before Judge Snyder.
As part of his guilty plea, Fatunmbi admitted that he and others paid cash kickbacks to patient recruiters and physicians for fraudulent prescriptions for DME such as power wheelchairs, which the Medicare beneficiaries did not need. Fatunmbi and co-conspirators caused Lutemi Medical Supply (Lutemi), a DME supply company that he co-ran, to submit approximately $8.3 million in claims to Medicare, which resulted in the company being paid over $3.5 million. Fatunmbi further admitted that he was responsible for $2,090,434 in false and fraudulent claims for medically unnecessary DME and that as a result of his conduct, Medicare paid Lutemi a total of $1,076,893. In furtherance of this scheme, Fatunmbi and a co-conspirator wrote checks from Lutemi’s bank account to Lutemi employees and others, and Fatunmbi instructed that those monies be returned to him to pay the illegal cash kickbacks to the patient recruiters and doctors, he admitted. Fatummbi admittedly directed others at Lutemi to engage in these tranactions to conceal the nature and source of the proceeds of the health care fraud conspiracy. As part of his plea agreement, Fatunmbi agreed to pay restitution to Medicare in the amount of $1,076,893.
Fatunmbi was charged along with Olufunke Ibiyemi Fadojutimi, 47, of Carson, California, and Maritza Elizabeth Velasquez, 44, of Las Vegas, Nevada. Velasquez pleaded guilty on July 24, 2013, to one count of conspiracy to commit health care fraud, and was sentenced to 15 months in prison and restitution in the amount of $3,411,428. Fadojutimi was found guilty after a jury trial on July 31, 2014, of one count of conspiracy to commit health care fraud, seven counts of health care fraud and one count of money laundering, and sentenced to four years in prison and restitution in the amount of $4,372,466. In her sentencing, Fadojutimi was held responsible for the full amount of over $8 million in intended losses caused by the fraud at Lutemi.
This case was investigated by the the FBI, the IRS and the Los Angeles Region of HHS-OIG. Trial Attorneys Claire Yan, Emily Culbertson and Justin Givens of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
New York Diagnostic Testing Facility Owners Plead Guilty in Multi-Million Dollar Health Care Fraud SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Tea Kaganovich and Ramazi Mitaishvili, the co-owners of diagnostic testing facilities in Brooklyn, each pleaded guilty to one count of health care fraud and one count of conspiracy to defraud the lawful functions of the Internal Revenue Service (IRS). The pleas took place before United States Magistrate Judge Steven M. Gold.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General, New York Region (HHS-OIG), and Jonathan D. Larsen, Acting Special Agent-in-Charge, IRS Criminal Investigation (IRS-CI), announced the guilty pleas.
Kaganovich and Mitaishvili, a married couple, were the co-owners of several diagnostic testing facilities, including Sophisticated Imaging Inc., East Coast Diagnostics Inc., East Shore Diagnostics Inc., East West Management Inc. and RM Global Health Inc. As part of their guilty pleas, Kaganovich and Mitaishvili admitted that they submitted fraudulent health care claims for diagnostic testing services. The defendants admitted that they paid approximately $18.5 million in kickbacks for the referral of beneficiaries who submitted themselves to diagnostic testing and other purported medical services. Kaganovich and Mitaishvili falsely reported to the IRS that the illegal kickback payments were legitimate business expenses, which caused relevant tax forms to falsely under-report business income and claim deductions.
The FBI, HHS-OIG and IRS-CI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Trial Attorneys Debra Jaroslawicz and Sarah Wilson Rocha of the Fraud Section are prosecuting the case. Assistant United States Attorney Tanisha Payne of the Eastern District of New York’s Civil Division is handling the forfeiture matters.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
The Defendants:
TEA KAGANOVICH
Age: 47
Brooklyn, New York
RAMAZI MITAISHVILI
Age: 58
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-649 (MKB)
New York Diagnostic Testing Facility Owners Plead Guilty in More than $18.5 Million Health Care Fraud SchemeRead the Press Release
Two New York diagnostic testing facility owners pleaded guilty today for their roles in a more than $18.5 million health care fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office, Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) New York Region and Acting Special Agent in Charge Jonathan Larsen of IRS Criminal Investigation (IRS-CI) New York made the announcement.
Tea Kaganovich, 47, and Ramazi Mitaishvili, 58, a married couple, both of Brooklyn, New York, each pleaded guilty to one count of health care fraud and one count of conspiracy to defraud the lawful functions of the IRS before U.S. Magistrate Judge Steven M. Gold of the Eastern District of New York. Sentencing has been scheduled for July, 18, 2019, before U.S. District Judge Margo K. Brodie of the Eastern District of New York.
The defendants were the co-owners of several diagnostic testing facilities in Brooklyn, including Sophisticated Imaging Inc., East Coast Diagnostics Inc., East Shore Diagnostics Inc., East West Management Inc. and RM Global Health Inc. As part of their guilty pleas, Kaganovich and Mitaishvili admitted that they executed a scheme in which they submitted fraudulent health care claims for diagnostic testing services. The defendants admitted that they paid approximately $18.5 million in kickbacks for the referral of beneficiaries who submitted themselves to diagnostic testing and other purported medical services. Kaganovich and Mitaishvili falsely reported to the IRS that the illegal kickback payments were legitimate business expenses, which caused relevant tax forms to falsely under-report business income and claim deductions, they further admitted.
The FBI, HHS-OIG and IRS-CI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Trial Attorneys Debra Jaroslawicz and Sarah Wilson Rocha of the Fraud Section are prosecuting the case. Assistant U.S. Attorney Tanisha Payne is handling the forfeiture in the case.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS-OIG to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Nevada Cardiologist Sentenced to Three Years in Prison for Unlawful Distribution of OpioidsRead the Press Release
RENO, Nev. – Dr. Devendra I. Patel, aka Devendrakumar I. Patel, a northern Nevada cardiologist was sentenced Tuesday to three years and one month in federal prison for prescribing highly addictive pain pills Oxycodone and Hydrocodone at a high rate to his patients without a medical purpose.
United States Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division, Resident Agent in Charge Marc C. Kuzmicki of the DEA’s Reno Office, and Special Agent in Charge Christian J. Schrank of the Office of Inspector General, for the U.S. Department of Health and Human Services Office Los Angeles Region made the announcement.
“Medical professionals who violate their oath and the law by prescribing addictive opioids without a legitimate medical purpose will be investigated, prosecuted, and held accountable for their actions,” said U.S. Attorney Trutanich. “The U.S. Attorney’s Office is fully committed to the investigation and prosecution of medical professionals who abuse their position of trust and by a stroke of the pen directly contribute to the opioid crisis.”
“Let those who would betray their oath to do no harm take notice of the penalty for such callous mistreatment of their patients,” said Special Agent in Charge Rouse. “The FBI will continue to work with our law enforcement partners in a unified effort to battle the opioid crisis in the state of Nevada.”
“This case is a direct result of the hard work of the investigators and prosecutors from the DOJ and their partners in Reno, Nevada,” said Resident Agent in Charge Kuzmicki. “This should serve as a warning to practitioners in Northern Nevada who are helping fuel the opioid epidemic. While the vast majority of medical professionals are following the appropriate guidelines and prescribing well within the law, we will find those who are harming members of our community and bring them to justice.”
“It is difficult to believe that a physician, sworn to do no harm by his Hippocratic oath, would needlessly prescribe these highly addictive opioid medications,” said Special Agent in Charge Schrank. “Yet our investigation revealed that Dr. Patel did exactly that. Physicians using prescribing privileges to fatten their profits rather than easing the pain of patients should expect aggressive investigation and prosecution.”
Patel, 60, of Elko, pleaded guilty in November 2018, to distribution of controlled substances, and was indicted by a grand jury in December 2017. His DEA license was suspended upon his arrest in December 2017. He owned and operated Northeastern Nevada Cardiology. In addition to the prison term, U.S. District Judge Larry R. Hicks sentenced Patel to three years of supervised release and ordered him to pay a $500,000 fine. Patel was ordered to self-surrender to begin serving his sentence on August 6, 2019.
Between September 2015 and February 2016, he prescribed Oxycodone and Hydrocodone to patients without a legitimate medical purpose and outside the usual course of professional practice. His prescribing practices allowed him to see a high volume of patients and easily prescribe opioids, while not addressing any legitimate medical concerns of his patients.
The case was investigated by the FBI, DEA, Office of Inspector General of the U.S. Department of Health and Human Services, U.S. Secret Service, the Elko Combined Narcotics Unit, Elko Police Department, Elko County Sheriff’s Office, and the Nevada Department of Public Safety. Assistant U.S. Attorney Sue Fahami prosecuted the case.
More than 42,000 people died from a prescription opioid overdose in 2016, and over 1,000 people are treated in the emergency room daily for improper use of prescription opioids, according to the Center for Disease Control. In 2016, there were 408 opioid-related deaths in Nevada, according to the Nevada Department of Health and Human Services.
The Opioid Fraud and Abuse Detection unit is a program that utilizes data to help combat the devastating opioid crisis. In 2017, the District of Nevada was selected as one of 12 districts nationally to participate in the program. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
For information about the harmful effects of illicit drug use, visit www.JustThinkTwice.com for teens and www.GetSmartAboutDrugs.com for parents, educators, and caregivers. To report suspected opioid-related crimes, the public is encouraged to contact the FBI at tips.fbi.gov or the DEA at www.deadiversion.usdoj.gov/tips_online.htm.
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Montana Man Charged in Connection with $43 Million Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing today of an Indictment charging TODD CAPSER with defrauding one financial institution of $43 million, and attempting to defraud at least nine other financial institutions of between $46 million and $52 million each. CAPSER was arrested earlier today in Billings, Montana, and will be presented before Magistrate Judge Timothy J. Cavan of the District of Montana later this afternoon. The case is assigned to U.S. District Judge J. Paul Oetken of the Southern District of New York.
U.S. Attorney Geoffrey S. Berman said: “Todd Capser, as alleged, managed to mislead a Canadian financial institution into lending him more than $43 million, and tried to mislead other financial institutions into lending him tens of millions of dollars more, by creating mountains of false evidence of his solvency to represent himself as a legitimate business owner. Capser is now in custody and faces significant time in prison for his alleged crimes.”
FBI Assistant Director William F. Sweeney Jr. said: “Despite the fact that this was a $43 million fraud scheme, the alleged illegal conduct was fairly simple. Omitting key information and falsifying loan documents are violations of federal law. To make matters worse, Capser went so far as to claim his daughter was terminally ill in an effort to explain behavior that would have otherwise attracted negative attention. Capser took a significant risk by conducting himself in this way. Unfortunately for him, he miscalculated the reward.”
As alleged in the Indictment unsealed today:[1]
From January 2016 through April 2019, CAPSER and CAPSER’s father (“CC-1”) perpetrated a scheme to defraud a financial institution based in Toronto, Canada (“Financial Institution-1”), by inducing it, through false and misleading representations and omissions, to loan approximately $43.3 million to an entity incorporated by CAPSER (“Capser Entity-1”), for the purchase of two chemical and oil tankers (the “Tankers”).
After obtaining the loan from Financial Institution-1 and purchasing the Tankers, CAPSER and CC-1 attempted to induce at least nine other Financial Institutions to loan between $46 million and $52 million each to refinance the original loan.
CAPSER and CC-1 fraudulently induced Financial Institution-1 to make the $43 million loan, and attempted to induce the other Financial Institutions to make the $46 million to $52 million refinancing loans, through, among other things: (a) fraudulently obtaining documents from a company that provides wealth‑management services to private clients (“Trust Company‑1”); (b) altering the Trust Company-1 documents, and forging additional Trust Company-1 documents, to make it appear as though CC-1 held an investment portfolio at Trust Company-1 composed of securities worth tens of millions of dollars, which could serve as collateral for the loans; (c) sending the altered and forged Trust Company-1 documents to certain of the Financial Institutions; (d) creating fake email accounts for employees of Trust Company-1, and sending emails from those accounts to certain of the Financial Institutions to make it appear as though CC-1 held an investment portfolio at Trust Company-1 composed of securities worth tens of millions of dollars; and (e) making false and misleading representations and omissions about the financial assets of CAPSER, CC-1, and their family to certain of the Financial Institutions, including falsely claiming to own a cattle company and ranch.
In addition, in an effort to engender sympathy, deflect questions, and explain suspicious behavior, CAPSER falsely represented to certain of the Financial Institutions that his daughter was terminally ill with cancer.
* * *
CAPSER, 47, of Billings, Montana, has been charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison. CAPSER has also been charged with one count of aggravated identity theft, which carries a mandatory sentence of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
The charges in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mr. Berman praised the outstanding investigative work of the FBI. He also thanked the FBI’s Billings Resident Agency for their assistance with the investigation.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Benjamin Woodside Schrier is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Michigan Man Sentenced for Unlawfully Importing and Distributing Misbranded DrugsRead the Press Release
Matthew Dailey, 36, of Royal Oak, Michigan, was sentenced today to two years in prison for illegally importing kratom—a powerful psychoactive substance—and selling it unlawfully through unapproved claims that it could treat serious diseases and medical conditions, including opiate withdrawal symptoms, the Department of Justice announced.
Dailey pleaded guilty on Jan. 8 in the Eastern District of Michigan to one count of introducing misbranded drugs into interstate commerce and one count of importing merchandise contrary to law. As part of his plea, Dailey agreed to forfeit $1,000,000 in illegal proceeds. Today, Judge Judith E. Levy of the Eastern District of Michigan sentenced Dailey to serve two years in prison, followed by three years supervised release.
Dailey was the owner and operator of Nomad Botanicals, an online business that sold kratom, which is made from the leaves of a tree indigenous to Southeast Asia, to consumers throughout the United States. In pleading guilty, Dailey admitted that he sold kratom with the intention that it be used as a drug to treat a variety of diseases, including chronic pain, Lyme disease, rheumatoid arthritis, and fibromyalgia. Dailey also widely distributed kratom as an opiate withdrawal drug, and as a substitute for drugs of abuse and prescription pills. Dailey further admitted that to circumvent the United States Food and Drug Administration’s (FDA) regulation of drugs under the federal Food, Drug, and Cosmetic Act (FDCA), Dailey knowingly and fraudulently portrayed his kratom products to the FDA as “incense,” “paint pigment,” and other substances not intended for human consumption. By deceiving the FDA in this manner, Dailey was able to import several tons of kratom into the United States.
“We will not tolerate the importation or misbranding of drugs and other products without proper regulatory approvals,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will continue to work with the FDA to ensure that drug distributors do not put consumers at risk by circumventing their obligations under the Food, Drug, and Cosmetic Act.”
As part of his plea agreement, Dailey further admitted that he repackaged and labeled the illegally imported kratom in his residence, which he did not register as a facility that manufactured, prepared, and processed drugs, as required under the FDCA. Dailey then sold and shipped kratom products to consumers throughout the United States for use as a drug without providing any directions for use, such as indications, dosage instructions, methods of administration, or contraindications.
This case was prosecuted by Trial Attorneys Clint Narver and Jocelyn Hines of the Department of Justice’s Consumer Protection Branch. The prosecution was assisted by Assistant U.S. Attorney Adriana Dydell of the United States Attorney’s Office for the Eastern District of Michigan. The case was investigated by the FDA’s Office of Criminal Investigations.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Men from Mansfield and Perry indicted on child pornography chargesRead the Press Release
Men from Mansfield and Perry were indicted in federal court on child pornography charges.
Indicted are: Christopher Coffer, 41, of Mansfield, and Anthony V. Coladangelo, 50, of Perry. Their cases are not otherwise related.
Coffer was charged with knowingly transporting, shipping, receiving, distributing, reproducing for distribution, possession of visual depictions of minors engaging in sexually explicit conduct.
Coffer knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between May 15, 2016 through February 22, 2018, according to the indictment.
The indictment also charges that on or about April 4, 2018, Coffer possessed a computer which contained child pornography.
Coladangelo was charged with receipt and distribution of visual depictions of real minors engaged in sexually explicit conduct and possession of child pornography.
Coladangelo knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between January 7, 2019 through February 24, 2019, according to the indictment.
The indictment also charges that on or about April 16, 2019, Coladangelo knowingly possessed a computer that contained an image of child pornography, and at least one image involved in the offense involved a prepubescent minor or a minor who had not attained 12 years of age.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The cases were investigated by the Federal Bureau of Investigation and the Lake County Sheriff’s Office (Coladangelo).
The cases are being prosecuted by Assistant U.S Attorneys Danielle K. Angeli, Brian Deckert and Michael A. Sullivan.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Man Who Cashed More Than $60,000 in Stolen Postal Money Orders Sentenced to 30 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that James Lebel, 40, formerly of Brooklyn, Connecticut, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for cashing more than $60,000 in stolen postal money orders.
According to court documents and statements made in court, Lebel was married to Michelle Barbeau, who was employed by the U.S. Postal Service at the Wauregan Post Office in Plainfield. Between April and September 2017, Lebel and Barbeau conspired to take 179 blank U.S. Postal money orders from the Wauregan Post Office and imprint them in various denominations. Lebel then cashed more than $60,355 in fraudulently imprinted postal money orders at a post office in Hartford.
Lebel’s criminal history includes convictions for harassment, larceny, sexual assault, burglary and narcotics offenses.
Lebel has been detained since his arrest on September 19, 2018. On January 15, 2019, he pleaded guilty to one count conspiracy to commit wire fraud.
Barbeau pleaded guilty to the same charge on January 16, 2019. On April 10, she was sentenced to three years of probation and eight months of home confinement.
Lebel and Barbeau were ordered to pay full restitution.
This matter was investigated by the U.S. Postal Service, Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
Media Advisory: Justice Department Officials to Announce Significant Cybercrime Enforcement ActionRead the Press Release
PITTSBURGH – Federal authorities will hold a news conference on May 8 at 2 p.m. ET in Pittsburgh to discuss a significant cybercrime enforcement action. This investigation was led by the United States Attorney’s Office in Western Pennsylvania and the Federal Bureau of Investigation – Pittsburgh Field Office, and also included the Criminal Division of the U.S. Department of Justice.
WHO:
U.S. Attorney Scott W. Brady, Western District of Pennsylvania
Deputy Assistant Attorney General Richard W. Downing, Justice Department’s Criminal Division
Special Agent in Charge Robert Allan Jones, FBI Pittsburgh Field Office
Eugenio Ricas, Brazilian Federal Police Attaché
Gabriel Bitton, Israel National Police Attaché for North America
WHEN:
WEDNESDAY, MAY 8, 2019
2 p.m. ET
WHERE:
U.S. Attorney’s Office
Joseph F. Weis Jr. United States Courthouse
700 Grant Street – Suite 4000
Pittsburgh, Pennsylvania 15219
LIVESTREAM ON:
KDKA.COM
Ludlow Man Sentenced to 12 Months and a Day for the Illegal Purchase of FirearmsRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Richard R. Hemingway, 34, of Ludlow, Maine, was sentenced today in U.S. District Court by Judge Lance E. Walker to 12 months and a day in prison and two years of supervised release for providing false information during the purchase of two firearms. Hemingway pleaded guilty on August 21, 2018.
According to court records, on October 4, 2017, Hemingway purchased a Windham Weaponry ‘WW-15’ .300BLK caliber AR-15 style rifle and a Sig Sauer ‘MCX’ .300BLK caliber AR-15 style rifle from a federally licensed firearms dealer. In doing so, he completed a Firearms Transaction Record form in which he falsely reported that he was the actual purchaser of the firearms. In fact, Hemingway was buying the firearms for David Allen Polchies. On the same day the firearms were purchased, officers with the Canada Border Services Agency (CBSA) arrested Polchies and Sharon Weeks as they attempted to smuggle the rifles, several high-capacity drum magazines, and 350 rounds of ammunition into Canada. Polchies and Weeks were prosecuted in Canada.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the CBSA. The case was prosecuted as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proved 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.
Lockport Man Indicted for Threatening to Kill the President, A Judge, His Wife, and A Secret Service AgentRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a five-count indictment charging Jared Marc Brown, 23 of Lockport, NY, with one count of making a threat against the president, two counts of retaliating against a United States judge, one count of retaliating against a federal law enforcement officer, and one count of mailing a threatening communication. The charges carry a maximum penalty of 10 years in prison.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the indictment, on March 25, 2019, the defendant made a threat to take the life of, and to inflict bodily harm upon, the President of the United States. Specifically, the defendant sent a letter to a United States Secret Service Special Agent stating, “I’m [ ] gonna kill Donald Trump with Anthrax when I get out.”
In addition, also on March 25, 2019, Brown threatened to assault and murder United States District Judge Lawrence J. Vilardo, his spouse, and a United States Secret Service Special Agent. The defendant intended to retaliate against Judge Vilardo and the Secret Service Special Agent on account of the performance of their official duties.
The indictment is the result of an investigation by the United States Secret Service, under the direction Special Agent-in-Charge Lewis Robinson.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Local Woman Charged with Filing False Tax ReturnRead the Press Release
HOUSTON – A local woman has been arrested following the return of a federal indictment alleging she filed a false tax return, announced U.S. Attorney Ryan K. Patrick and Acting Special Agent in Charge Sarah Kull of IRS – Criminal Investigation (CI).
A federal grand jury returned the indictment against Vanessa Ben April 25, 2019. She was taken into custody today and expected to make her initial appearance today before U.S. Magistrate Judge Christina A. Bryan.
The indictment alleges that from 2012 through 2015, Ben willfully filed U.S. Individual Income Tax returns she did not believe to be true and correct. She allegedly filed these returns knowing she was not entitled to claim several items on her returns.
If convicted, she faces up to three years in federal prison and a possible $100,000 maximum fine.
IRS-CI conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Lincoln Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Aaron C. Collins, 37, of Lincoln, was sentenced today to four years, (48 months), in federal prison by Chief United States District John M. Gerrard on each of two counts of possession with intent to distribute five grams or more of methamphetamine actual (pure). The two sentences will run concurrently (at the same time). Following the prison term, Collins will serve five years on supervised release.
On November 10, 2016, Collins was stopped for traffic violations and was found in possession of four baggies containing a total of at least 75 grams (2 ⅔ ounces) of actual (pure) methamphetamine, more than $2,000 in cash, suspected drug records and brass knuckles with folding knives on each end. On January 27, 2017, Collins was arrested for driving on a suspended license. He was found in possession of four plastic bags containing a total of at least 18 grams of actual (pure) methamphetamine, two digital scales, plastic baggies and a loaded handgun. Collins admitted he had just purchased the methamphetamine but denied ownership of the gun, saying someone else left it in his car.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lackawanna Man Going to Prison for Selling Crack Cocaine Near A Public Housing FacilityRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Rodney Alls, a/k/a Session, 49, of Buffalo, NY, who was convicted of distribution of crack cocaine, was sentenced to serve 25 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Emmanuel O. Ulubiyo, who handled the case, stated that in May 2017, the Federal Bureau of Investigation and Lackawanna Police Department investigated the defendant for suspected distribution of crack cocaine in and around the City of Lackawanna.
On 10 occasions between May 10, 2017, and July 11, 2017, Alls sold crack cocaine to an individual working with the FBI. Each of the sales occurred at or within 1,000 feet of the Baker Homes Housing Project, a public housing facility owned by the Lackawanna Municipal Housing Authority.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Lackawanna Police Department, under the direction of Chief James Michel.
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Kentwood Man Pleads Guilty to Possession of Child PornographyRead the Press Release
NEW ORLEANS, LOUISIANA – RANDOLPH ARD (“ARD”), age 62, of Kentwood, Louisiana, entered a plea of guilty May 3, 2018 to Possession of Child Pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B).
According to documents filed in federal court, on November 22, 2017, law enforcement officers with the Louisiana Bureau of Investigation arrested ARD at his Kentwood home after finding that ARD was in possession of several items, including a laptop computer and thumb drive that contained images depicting the sexual victimization of prepubescent children. Court records also revealed that ARD was previously convicted in Tangipahoa Parish Criminal District Court for pornography involving juveniles and indecent behavior with juveniles on March 6, 2013. ARD was on state parole supervision at the time of his arrest.
ARD faces a mandatory minimum penalty of ten (10) years imprisonment up to twenty (20) years, followed by up to a life term of supervised release, and a $250,000.00 fine.
ARD will be sentenced by U.S. District Judge Eldon E. Fallon on August 8, 2019.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Strasser praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations, the Louisiana Bureau of Investigation, and Louisiana Probation and Parole in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Financial Crimes Unit Supervisor, Assistant U. S. Attorney Brian M. Klebba.
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Kentucky Correctional Officers Charged with Beating Handcuffed Inmate and Attempting to Cover up MisconductRead the Press Release
David M. Schwartz, 48, and Donna K. Gentry, 55, former correctional officers at the Louisville Metro Department of Corrections, were indicted today by a federal grand jury in Louisville on charges of violating the civil rights of an inmate, writing false reports, and obstructing justice for their roles in the assault of an inmate who was handcuffed and not resisting, and in the attempt to cover up the misconduct afterward by writing false reports and tampering with witnesses. A third officer, Devan Edwards, was charged by information today with a federal felony offense for his role in the assault. Today’s indictment was announced by Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, U.S. Attorney Russell Coleman for the Western District of Kentucky, and FBI Louisville Special Agent in Charge James Robert Brown Jr.
The indictment charges three felony offenses against Schwartz and one felony offense against Gentry. Schwartz is charged with depriving the inmate of his right to be free from excessive force (resulting in bodily injury), and with filing two false reports, one of which wrongfully accused the inmate of assaulting on an officer. Gentry is charged with obstructing justice by filing a false use of force report, and by directing a subordinate officer to file a false use of force report.
The maximum penalties for the charged crimes are 10 years of imprisonment for the deprivation-of-rights offense and 20 years of imprisonment for each of the false report and obstruction offenses.
An indictment is merely an accusation and the defendants are presumed innocent unless proven guilty.
This case was investigated jointly by the FBI’s Louisville Resident Agency Office and by the Louisville Metro Police Department’s Public Integrity Unit. The case will be prosecuted by Trial Attorney Christopher J. Perras of the Department of Justice’s Civil Rights Division, and Assistant United States Attorney Amanda Gregory of the Western District of Kentucky.
Jury Finds Atwater Inmates Guilty of Attempting to Kill a Correctional Officer and Assault on a Correctional OfficerRead the Press Release
FRESNO, Calif. — On Tuesday, after a four-day trial, a federal jury found Jonathan Mota, 37, guilty of attempting to kill a federal officer and found Dominic Adams, 27, guilty of assault on a federal officer, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence presented at trial, on October 6, 2017, Mota, Adams and four other inmates brutally attacked a Federal Bureau of Prisons officer who was a teacher working at the federal penitentiary in Atwater. The officer was repeatedly stabbed with homemade knives and kicked and beaten by the inmates.
According to court documents, on the day of the attack, Mota and Eric Chiago, 28, entered the copy room where the officer was making copies and repeatedly stabbed him. William Roe Acevedo, 33; Michael Martin, 30; Joey Thomas, 26; and Adams stationed themselves outside the room. When the victim was able to free himself and escape down the hallway, the six defendants tackled him and wrestled him to the floor where they repeatedly kicked, punched and stabbed him. Adams and Thomas also assaulted an officer who was responding to the attack.
Chiago, Acevedo, Martin, and Thomas pleaded guilty to aggravated assault. Chiago was sentenced to 15 years and eight months in prison, Acevedo was sentenced to 13 years in prison, Martin was sentenced to 12 years and six months in prison, and Thomas was sentenced to eight years and one month in prison.
This case is the product of an investigation by the FBI and the Federal Bureau of Prisons. Assistant U.S. Attorneys Brian K. Delaney and Kirk E. Sherriff are prosecuting the case.
Mota and Adams are scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on July 29. They face a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Jacksonville Couple Sentenced to Prison After Trading Guns to Drug DealersRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Jonathan Cody (53, Jacksonville) to 37 months in federal prison for possessing a firearm while an unlawful user of controlled substances. The court also ordered Cody to pay a $5000 fine. Cody’s girlfriend, Kyle Ann Louise Mollgren (30, Jacksonville), was sentenced to 30 months in federal prison for possessing a firearm as a convicted felon. Cody and Mollgren had pleaded guilty on October 10, 2018.
According to court documents and information presented at sentencing, in late 2017, Cody and Mollgren sold three firearms that belonged to Cody to two Jacksonville drug dealers. One of those firearms was a Colt .556 caliber law enforcement carbine with an extended magazine, which Cody and Mollgren sold to Nathaniel Harrison on September 21, 2017. Later that day, Harrison sold the firearm to an undercover agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives. After Harrison was arrested, he identified Cody and Mollgren as the individuals who had sold the firearm to him. Harrison pleaded guilty to federal drug and firearms charges on February 23, 2018, and was later sentenced to seven years in federal prison.
On February 9, 2018, Cody and Mollgren were interviewed by ATF agents and admitted that they had sold the Colt .556 caliber law enforcement carbine to Harrison in exchange for money and drugs. Cody and Mollgren estimated that they had purchased $10,000 worth of drugs from Harrison. During this time, Cody was an unlawful user of crack cocaine, and Mollgren was a convicted felon. Both Cody and Mollgren were prohibited from possessing firearms under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Inglewood-based Tax Preparer Indicted in $5 Million Tax Fraud CaseRead the Press Release
LOS ANGELES – A tax preparer and former California Franchise Tax Board employee was arrested today on a 26-count federal grand jury indictment alleging he schemed to defraud the Internal Revenue Service by declaring fictitious withholdings used to fraudulently claim tax refunds of more than $5 million.
Cubby Wayne Williams, 63, of Alhambra, was arraigned this afternoon in United States District Court on 22 counts of assisting in the preparation of false tax returns for his clients and four counts of subscribing to false tax returns for himself. United States District Judge Percy Anderson has scheduled a May 13 trial-setting hearing for Williams, who is free on $20,000 bond.
According to the indictment, Williams owns and operates Williams Financial Network, an Inglewood-based tax services company. Prior to forming this company, Williams worked from 1985 to 1996 as a compliance representative in the California Franchise Tax Board’s collection division.
Williams allegedly filed tax returns claiming that his clients had accrued Original Issue Discount (OID) interest income. OID is a form of interest that accrues over the life of a bond or other debt instrument, but is not payable as it accrues. Financial institutions use IRS Forms 1099-OID to report this accrued, but unpaid, income, and any tax withholdings on it.
Williams filed approximately 514 tax returns for clients for tax years 2010 through 2016, fraudulently claiming OID withholdings and seeking approximately $5.49 million in bogus tax refunds, according to prosecutors, who also stated that the IRS paid out approximately $3 million on these fraudulent claims. The clients have not been charged in the alleged scheme.
Williams admitted creating the Forms 1099-OID he gave to IRS auditors, who questioned the withholdings he claimed on the tax returns he prepared for his clients and himself, prosecutors said in court today.
If convicted of all counts, Williams would face a statutory maximum sentence of 78 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being investigated by IRS Criminal Investigation.
This matter is being prosecuted by Assistant United States Attorney Ranee Katzenstein of the Major Frauds Section.
Henderson Man Convicted of Narcotics and Firearm ChargesRead the Press Release
ELIZABETH CITY - United States Attorney Robert J. Higdon, Jr. announced that, KACEY HICKS, 34, of Henderson, North Carolina was convicted in federal court following a 2-day trial before Chief United States District Judge Terrance W. Boyle. The jury heard evidence that HICKS kept a residence in the Flint Hill neighborhood of Henderson. After receiving a complaint regarding drug activity at that residence, law enforcement conducted an investigation which led to a search warrant of the premises, where HICKS was found hiding under a bed in close physical proximity to a firearm. Officers seized distributable quantities of cocaine and marijuana, ammunition, two additional firearms, drug paraphernalia, and US currency during the course of their search. The jury found HICKS guilty of possession with intent to distribute cocaine and marijuana; felon in possession of a firearm and ammunition; and maintaining a dwelling for drug distribution.
HICKS faces a maximum sentence of 20 years imprisonment followed by no less than 3 years of supervised release on the drug counts, and a maximum sentence of 10 years imprisonment followed by no more than 3 years of supervised release on the firearm count.
This case was brought using the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Henderson Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorneys Thomas Crosby and Laura Howard handled the prosecution of this case for the government.
Hartford Man on Federal Supervision Charged with Distributing FentanylRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging JOSEPH GRIFFIN, 42, of Hartford, with two counts of possession with intent to distribute, and distribution of, fentanyl.
As alleged in the indictment, on two occasions in January 2019, Griffin possessed and distributed fentanyl.
The indictment was returned on April 2, 2019, and Griffin was arrested today. He appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford, entered a plea of not guilty to the charges and was released on a $50,000 bond.
Griffin has been on federal supervised release since December 2017. Prior to beginning his term of federal supervision, Griffin served a 10-year sentence for a federal narcotics conviction related to his distribution of crack cocaine.
If convicted of the new charge, Griffin faces a maximum term of imprisonment of 20 years in prison. He also faces additional penalties if he is found to have violated the conditions of his supervised release.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, with the assistance of the U.S. Marshals Service and Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney David T. Huang and First Assistant U.S. Attorney Leonard C. Boyle.
Hartford Man Sentenced to More Than 3 Years in Prison for Possessing Loaded Handguns in EnfieldRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KELVIN PETERS, 42, of Hartford was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 37 months of imprisonment, followed by three years of supervised release, for illegally possessing a loaded handgun.
According to court documents and statements made in court, on May 9, 2018, Enfield Police stopped a car in which Peters was a passenger. A search of the vehicle revealed two loaded firearms, a Bersa Thunder 380 handgun and a High Point Model C9 9mm pistol with an obliterated serial number. Peters admitted in an interview with officers that the guns were his.
Peters’ criminal history includes multiple convictions in state court for drug offenses, and a 2004 federal conviction for possession of a firearm by a convicted felon for which he was sentenced to seven years in prison.
Peters has been detained since his federal arrest on August 1, 2018. On October 15, 2018, he pleaded guilty to one count of possession of firearms by a convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Enfield Police Department. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
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 neighborhoods safer for everyone.
Grand Jury Returns Indictment Charging Three in Connection with Fraudulent Silver Trading ProgramRead the Press Release
SALT LAKE CITY -- A federal grand jury in Salt Lake City returned a six-count indictment Wednesday afternoon charging three individuals in connection with an alleged scheme to defraud investors by inducing them to purchase investments in a fraudulent silver trading program.
The silver trading program was offered and sold to at least 500 investors throughout the United States and the defendants collected approximately $200 million.
Charged in the indictment are Gaylen Dean Rust, age 59, and Denise Gunderson Rust, age 59, both of Layton, and Joshua Daniel Rust, age 37, of Draper.
Announcing the indictment are U.S. Attorney for Utah John W. Huber, FBI Special Agent in Charge Paul Haertel of the FBI’s Salt Lake Field Office; Francine A. Giani, Executive Director of the Utah Department of Commerce, and Thomas A. Brady, Director of the Division of Securities.
Gaylen Rust owned and managed Rust Rare Coin, Inc. (RRC), R Legacy Entertainment LLC, R. Legacy Racing Inc., R Legacy Investments LLC, R Legacy Ranch, and Legacy Music Alliance. Denise Rust was listed as the secretary of RRC and had signatory authority on several RRC bank accounts. Joshua Rust was manager of RRC from 2004 to Nov. 15, 2018. He also had signatory authority on several RRC bank accounts and managed the day-to-day operations of the RRC coin shop.
All three defendants are charged with wire fraud conspiracy in the first count of the indictment and money laundering conspiracy in the second count. Gaylen Rust is also charged with two counts of securities fraud. Denise Rust and Joshua Rust are each charged with one count of money laundering.
The indictment alleges that from around 1996 and continuing to Nov. 15, 2018, the defendants conspired to defraud investors and potential investors by offering and inducing them to purchase investments in a silver trading program. According to the indictment, Gaylen Rust, who offered and sold investments in the program, made false and fraudulent statements regarding his scheme, both directly and indirectly, to investors and potential investors through various means including meetings, phone calls, mailings, and emails.
The indictment alleges the defendants failed to disclose to investors, among other things, that investor funds would be used for purposes other than to invest in silver and trading silver; that Gaylen Rust was not licensed to sell securities, trade commodities or operate a commodity pool; that investor funds were being laundered through transfers in and out of the defendants’ personal accounts; and that investment account statements provided to investors were false and not based on actual silver trades.
In order to convince investors that their investments were profitable and to convince potential investors that the silver program was earning money, the defendants operated the trading program as a Ponzi scheme. The defendants used investment money from later investors to pay the promised returns to earlier investors, creating the false impression that the silver trading program was profitable, the investments were safe and secure, and that the promised returns were being generated. Ponzi payments of approximately $150 million were made to investors, representing those payments as profits from the operation of the silver trading program.A summons will be issued to each defendant to appear on the charges in the indictment. The potential maximum penalties for wire fraud conspiracy, securities fraud and money laundering conspiracy are up to 20 years in federal prison per count. Money laundering conspiracy carries a potential penalty of 20 years. Securities fraud has a 20-year maximum sentence sand money laundering has a potential 10-year sentence.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Assistant U.S. Attorneys in Salt Lake City are prosecuting the case. Securities Investigator Elizabeth Blaylock of the Utah Division of Securities and Special Agents Jason Henrikson and James Malpede of the FBI are investigating the case along with agents on the FBI’s White Collar Task Force, including Special Agent Jeff Kirkwood of IRS-Criminal Investigation. Related civil cases have been filed by the Securities Exchange Commission, the Commodity Futures Trading Commission, and the Utah Attorney General’s Office.
Fort Worth Man Pleads Guilty to Conspiring to Provide Material Support to Foreign Terror GroupRead the Press Release
A Fort Worth man today pleaded guilty to a federal terrorism charge, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox and Assistant Attorney General for National Security John C. Demers.
Michael Kyle Sewell, 18, who was arrested in February, formally pleaded guilty Wednesday morning to conspiracy to provide material support to Lashkar-e-Taiba, a Pakistani-based foreign terrorist organization also known as LeT.
According to court documents, Sewell admitted to encouraging an individual identified in court documents as coconspirator 1 to join LeT.
Sewell provided the coconspirator, who he spoke to on social media, with contact information for an individual he believed could facilitate the coconspirator’s travel to Pakistan to join LeT. Unbeknownst to Sewell and the coconspirator, the facilitator was an undercover FBI agent.
Sewell and the coconspirator discussed what the coconspirator should say to the undercover agent who posed as the facilitator, in order to gain the facilitator’s trust and be permitted to join LeT. Sewell also contacted the facilitator to vouch for the coconspirator’s authenticity.
Sewell now faces up to 20 years in federal prison and a fine of up to $250,000. He will be sentenced on August 12 in Fort Worth.
The Federal Bureau of Investigation and its Joint Terrorism Task Force members, including the Arlington Police Department, the Fort Worth Police Department, the Tarrant County Sheriff’s Office, the Naval Criminal Investigation Service, Homeland Security Investigations, and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jay Weimer prosecuted the case.
Former Treasurer of Non-Profit Aiding Families of Slain Soldiers Sentenced for Stealing Donated MoneyRead the Press Release
COLUMBUS – The former treasurer of a non-profit dedicated to helping families of soldiers killed in the line of duty was sentenced Tuesday for stealing money from the organization, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Dustin Campbell, 36, of Knoxville, Tennessee previously pleaded guilty to one count of Wire Fraud and was sentenced by the Honorable Clay Land Tuesday to 15 months in prison. Mr. Campbell will also have to pay $38,000 in restitution to the Army Sniper Association. There is no parole in the federal system.
Created in December 2001, the Army Sniper Association (ASA) earned 501(c)(3) status in 2008, operating solely to benefit families of current and former Army snipers. Based in Columbus, GA near Ft. Benning, Mr. Campbell served as the unpaid, volunteer treasurer from April 2015 to October 2016. According to his signed plea agreement, Mr. Campbell had sole signatory authority over the account, which was located, with the approval of the ASA, at a Tennessee bank where Mr. Campbell lived. An audit of the account showed that when Mr. Campbell began his tenure as treasurer there was a balance of $62,021.46 in the account. On October 27, 2016, the Defendant was terminated as treasurer, and five months later, the balance of the account had diminished to $647.05. An audit of the account revealed that Mr. Campbell had used ASA funds for personal expenses including fast food, gas, clothing and utility bills. Mr. Campbell also made at least 150 automatic teller machine cash withdrawals, converting more than $40,000 in ASA funds for his own personal use.
“The integrity of non-profit organizations is at risk anytime there is theft within this goodwill system, and these rogue players must be rooted out and held accountable for their crimes,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Taking from our military families, who have given so much, will not be tolerated. I want to thank the FBI who lead this investigation and uncovered the truth.”
“The work that non-profit organizations do is invaluable to our society, and we cannot allow anyone driven by personal greed to misdirect funds away from the people who need them,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Some of these stolen funds would have gone to families of soldiers who gave their lives for our country. Campbell must now pay the price for putting his personal gains before those families’ needs.”
The case was investigated by the FBI. Assistant U.S. Attorney Mel Hyde prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Former State Judicial Marshal Who Assisted Drug Dealer is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ADAM CLARKE, 38, of Norwich, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to three years of probation, six months of home confinement and a $750 fine for assisting a drug dealer while Clarke was working as a state judicial marshal.
According to court documents and statements made in court, in 2017, law enforcement conducted a long-term investigation into the distribution of drugs in the Norwich and New London area. On multiple occasions in October 2017, Clarke was intercepted on a court-authorized wiretap discussing the distribution of heroin and prescription narcotics. The investigation revealed that Clarke, who was employed as a state judicial marshal, received prescription pills from a known drug dealer while he was at work, assisted the drug dealer in avoiding detection by law enforcement by identifying law enforcement actions and vehicles, and agreed to broker at least one heroin transaction between the drug dealer and a third party.
On October 25, 2018, Clarke pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, heroin.
Clarke is no longer employed as a state judicial marshal.
This matter was investigated by the Federal Bureau of Investigation and the Norwich, Waterford and Town of Groton Police Departments. This case was prosecuted by Assistant U.S. Attorney David C. Nelson.
Former Milwaukee Alderman Charged with Wire FraudRead the Press Release
United States Attorney Matthew D. Krueger announced that a federal grand jury has returned an indictment charging a former Milwaukee alderman, Willie C. Wade (age: 56), with three counts of wire fraud. According to the indictment, Wade obtained $30,000 in cash from a cooperating individual by falsely claiming that he was negotiating on behalf of a current Milwaukee alderman to accept a bribe in exchange for a vote in favor of approving licenses for a downtown strip club. According to the indictment, the alderman was not aware of Wade’s representations and had never offered or agreed to accept any bribe.
Each count carries a maximum penalty of 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release following any prison term.
In announcing the charges, United States Attorney Krueger specifically commended the hard work and dedication of the Milwaukee Division of the Federal Bureau of Investigation (FBI) during the investigation of this matter.
The public is cautioned that an indictment is merely a formal charge that a defendant has committed one or more violations of federal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI and has been assigned to Assistant United States Attorneys Richard G. Frohling and Paul L. Kanter for prosecution.
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Former Hennepin County Employee and Husband Plead Guilty to Theft of Government FundsRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty pleas of ROBERT ANTHONY COLEMAN, 45, and YOLANDA YVETTE COLEMAN aka YOLANDA YVETTE PITTMAN, 50, for conspiring to defraud multiple government social services programs over the course of several years. The defendants entered their guilty pleas today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota.
According to the defendants’ guilty pleas and documents filed with the court, from 2002 through December 2016, PITTMAN was employed by the Hennepin County Human Services and Public Health Department (HSPHD). From at least October 2009, PITTMAN’s job duties gave her access to computer databases used in processing applications for government benefits intended to assist low-income persons with food, medical, and other living expenses, including Medical Assistance and SNAP food stamp benefits. During this time, PITTMAN became romantically involved with COLEMAN, who was a HSPHD client prior to and continuing into their relationship. PITTMAN and COLEMAN were married on August 17, 2014.
According to the defendants’ guilty pleas and documents filed with the court, from October 2010 through August 2018, PITTMAN and COLEMAN conspired to fraudulently obtain Section 8 rental housing assistance subsidies, SNAP benefits, Medical Assistance benefits, Supplemental Security Income (SSI) benefits from the Social Security Administration, and other public assistance, by concealing information and submitting false applications to the government entities responsible for implementing these programs. For example, PITTMAN and COLEMAN failed to disclose that they resided together while COLEMAN received Section 8, SNAP, Medical Assistance, and SSI public assistance benefits. PITTMAN also acted as COLEMAN’S Personal Care Attendant (PCA) for several years, with COLEMAN’S Medical Assistance benefits paying for these PCA services. The Government contends the total loss amount, which will be established at sentencing, is $248,838.
This case is the result of an investigation conducted by the Department of Housing and Urban Development – Office of the Inspector General, Hennepin County Fraud Investigations Unit, and the Social Security Administration – Office of the Inspector General.
This case is being prosecuted by Assistant U.S. Attorney Sarah Hudleston and Special Assistant U.S. Attorney Lindsey Middlecamp.
Defendant Information:
ROBERT ANTHONY COLEMAN, 45
Minneapolis, Minn.
Convicted:
- Conspiracy to commit theft of government funds, 1 count
YOLANDA YVETTE COLEMAN, aka YOLANDA YVETTE PITTMAN, 50
Minneapolis, Minn.
Convicted:
- Conspiracy to commit theft of government funds, 1 count
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- Conspiracy to commit theft of government funds, 1 count
Former Children’s Swim School Employee Pleads Guilty to Child Pornography ChargesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Danielle Sebenick, 27, of Glenside, PA entered a guilty plea today before the Honorable Petrese B. Tucker, admitting to the crimes of possession and distribution of child pornography.
Sebenick was indicted by a federal grand jury in January of 2019 as a result of her trafficking in videos of child pornography on the Internet during November of 2018, while she was employed at the Kids First Swim School in Jenkintown, PA.
“Not only did this defendant commit the heinous crime of possessing and distributing child pornography, she did it while employed at a business that specializes in teaching children an important life skill,” said U.S. Attorney McSwain. “Parents and caregivers bring their children to facilities like this with the expectation that the staff will teach them and keep them safe; they shouldn’t be worried that their children are in the presence of a sexual predator.”
“Homeland Security Investigations will remain steadfast in our dedication to identify, investigate and apprehend those who abuse the most vulnerable of our society – our children,” said Marlon V. Miller, special agent in charge of HSI Philadelphia. “Investigating and prosecuting the perpetrators of these horrendous crimes is one of our highest priorities and HSI will continue to work with our law enforcement partners to bring these criminals to justice.”
The case was investigated by Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Kelly Harrell.
Former Boy Scout Employee Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Russell Ruth, 34, of Lyons, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to possession of child pornography, including prepubescent images. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that between March 13 and June 7, 2018, the defendant uploaded five files containing child pornography to a Yahoo! Server. Yahoo! intercepted the files and reported to the National Center for Missing and Exploited Children (NCMEC).
Investigators determined the images were uploaded by Ruth and executed a search warrant at his residence on June 7, 2018. During the search, investigators seized electronic devices containing over 10,285 images and 602 videos of child pornography, including images of prepubescent children and images involving violence.
The defendant was employed by the Boy Scouts of America in the Ovid, NY area.The plea is the result of investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for August 7, 2019, at 11:30 a.m. before Judge Geraci.
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Felch Man Found Guilty of Manufacturing and Possessing with Intent to Distribute MarijuanaRead the Press Release
MARQUETTE, MICHIGAN — A jury in federal district court in Marquette found Lee Edward Blomquist guilty of manufacturing or aiding and abetting the manufacture of more than 50 marijuana plants and of possessing or aiding and abetting the possession of those plants with the intent to distribute them. A sentencing date has not been scheduled.
Blomquist, 48, of Felch, maintained a marijuana grow operation on family property located in Felch and sold processed marijuana to a Wisconsin resident over a period of nine months. At the time of his arrest in 2017, police found 32 pounds of processed marijuana with a street value in excess of $100,000.00. In addition to the violation of federal controlled substance law the jury found, Blomquist was also in violation of Michigan’s Medical Marijuana Act because of the amount of marijuana involved, his sale to another state, and his status as a previously convicted felon.
The investigation into Blomquist’s marijuana grow operation began when detectives from the Kingsford, Iron Mountain, Norway, Dickinson (KIND) drug team conducted multiple controlled buys of marijuana from Blomquist’s Wisconsin associate. KIND detectives ultimately obtained a search warrant for the Blomquist property and found the marijuana grow building and processed marijuana. Blomquist admitted to selling marijuana to his Wisconsin associate and described his work on the marijuana grow as a full-time job. Pending trial in September 2018, the court granted Blomquist a one week furlough from custody to visit with his sick father and Blomquist fled the jurisdiction. His trial commenced after KIND investigators recaptured him in November 2018.
On February 7, 2019, Blomquist pleaded guilty to conspiracy to possess with intent to distribute marijuana and distribution of marijuana related to his Wisconsin associate. Blomquist was previously convicted in federal court of manufacturing marijuana and being a felon in possession of a firearm in 2003.
This case was prosecuted by Assistant U.S. Attorney Paul D. Lochner. Prosecution would not have been possible without the combined assistance of the KIND drug team, the Dickinson County Sheriff’s Office, the Kingsford Public Safety Department, the Iron Mountain Police Department, the Michigan State Police Crime Lab, and the Dickinson County Prosecutor’s Office.
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Federal Indictments Charge 11 Durham Residents with Hobbs Robbery Conspiracy and Other OffensesRead the Press Release
GREENSBORO, N.C. – Eleven individuals from Durham were indicted May 3, 2019, on federal charges relating to a series of violent robberies, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina.
The defendants are charged in an indictment alleging that between October 18, 2015 and January 29, 2016, in Durham, Guilford, and Orange Counties, they conspired to commit Hobbs Act Robbery, that is, robbery by means of actual or threatened force, violence, and fear. The conspiracy allegedly targeted the personal residences of Middle-Eastern and Asian business owners to facilitate the theft of the business proceeds believed to be stored at their respective homes. Owners of the following businesses were targeted: Tobacco World in Durham, North Carolina; T-Nails Salon in Durham, North Carolina; Pink Nails in Hillsborough, North Carolina; Lakhani Jewelers in Durham, North Carolina; Biswas Tobacco in Durham, North Carolina; and China Fuji in Hillsborough, North Carolina. The defendants are:
• SAVIAN JACOBY TURRENTINE, age 26, of Durham
• DEION TYRELL LILES, age 23, of Durham
• ERVIN MONTEZ ALSTON, age 26, of Durham
• JERMAUCIYAE RYSUAN ABRAM, age 21, of Durham
• KEVIN JAMIE JENAVOUS MALONE, age 24, of Durham
• TERRELL LEE MCLAMB, age 26, of Durham
• HOWARD FREEMAN EARL, JR., age 24, of Durham
• MARKEY ANTONIO GOLDSTON, age 29, of Durham
• BARRY DION HOLT, age 26, of Durham
• JOSHUA QUINTON JONES, age 23, of Durham
• ANTHONY LATARIO JAMES, age 23, of Durham
In addition to the conspiracy charge, each defendant faces one or more individual charges of Hobbs Act Robbery and one or more individual charges of brandishing a firearm during a crime of violence. Each defendant convicted of a Hobbs Act robbery or conspiracy charge faces a maximum sentence of 20 years in prison, a fine of up to $250,000, or both, and not more than 3 years supervised release. Each defendant convicted of a brandishing a firearm charge faces a minimum sentence of 7 years in prison, a fine of up to $250,000, or both, and not more than 7 years supervised release.
“These organized criminals systematically terrorized and preyed upon minority business owners and their families,” said United States Attorney Martin. “The United States Attorney’s Office is committed to reducing violent crime and protecting the people of the Middle District by identifying and prosecuting violent offenders like these.”
"The defendants committed violent robberies across the community which instilled fear in the hearts of innocent people. These indictments send a clear message, we will work closely with our law enforcement partners to make sure those bringing violence to our streets are held accountable." said SAC Strong.
One of the conspirators, MARKEY ANTONIO GOLDSTON, is also charged in a separate two-count indictment with possession with intent to distribute cocaine base, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the drug charge, GOLDSTON faces a maximum sentence of 20 years in prison, a fine of up to $1,000,000, or both, and not less than 3 years supervised release. If convicted of the firearm charge, GOLDSTON faces a minimum sentence of 5 years in prison, a fine of up to $250,000, or both, and not more than 3 years supervised release.
The charges contained in the indictments are merely allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Federal Bureau of Investigation, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Durham County
Sheriff’s Office, the Durham Police Department, the Orange County Sheriff’s Office, the North Carolina Department of Public Safety, Special Operations & Intelligence Unit, and the North Carolina State Highway Patrol. The case is being prosecuted by Assistant U.S. Attorney Terry M. Meinecke of the United States Attorney’s Office.
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Fayetteville Man Sentenced to More Than 19 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Michael Sartin, age 54, of Fayetteville, Arkansas, was sentenced yesterday to 235 months in federal prison followed by five years of supervised release and ordered to pay a $10,000.00 fine for one count of Distribution of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, during the course of an investigation beginning in 2017 into methamphetamine trafficking in the Western District of Arkansas, the Fourth Judicial District Drug Task Force identified Sartin as a distributor of methamphetamine in Northwest Arkansas.
During the investigation, controlled purchases of methamphetamine were arranged and conducted by investigators from Sartin. The investigators recovered approximately 530 grams of methamphetamine from these transactions.
Sartin was indicted by a federal grand jury in January 2018, and entered a guilty plea in September 2018.
This case was investigated by the Fourth Judicial District Drug Task Force. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Former Bank Executive Charged with Bank FraudRead the Press Release
United States Attorney Matthew D. Krueger, has announced that on May 7, 2019, a grand jury sitting in the Eastern District of Wisconsin returned a 13-count indictment charging Archie G. Overby, 70, formerly of Waupaca, Wisconsin, now living in Plano, Texas, with bank fraud in violation of Title 18, United States Code, Section 1344, and misapplication of bank funds by a bank officer, in violation of Title 18, United States Code, Section 656. If convicted of these offenses he faces up to 30 years in prison and a $1,000,000 fine on each count.
The indictment alleges that between 2010 and 2013, Overby, who was then president, CEO and Chairman of the Board of First National Bank in Waupaca, Wisconsin, defrauded the bank by expensing the bank for luxurious personal travel and entertainment for himself, his family, and various friends. Among the trips that he is alleged to have taken at bank expense are trips to Tanzania, the Cayman Islands and St. Maarten, as well as to luxury hotels and resorts in California, Texas, Florida, and North Carolina. The indictment alleges that this personal travel exceeded $1.2 million dollars and that he caused the bank to provide him with an additional $320,930 to cover taxes on the ill-gotten proceeds.
The case was investigated by Special Agents of the Federal Deposit Insurance Corporation Office of Inspector General and the United States Treasury Office of Inspector General. It is being prosecuted by Assistant United States Attorney Carol L. Kraft.
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DEA Omaha Division collects 32,713 pounds of unwanted medication at spring Take Back Day eventRead the Press Release
OMAHA, Neb., – The Drug Enforcement Administration (DEA) collected nearly 469 tons of unwanted medication at the 17th National Prescription Drug Take Back Day event, April 27, with a record-setting 6,398 sites hosted by more than 5,000 law enforcement partners. In South Dakota, 1,634 pounds of potentially dangerous and unwanted drugs were discarded at 25 sites with assistance from 24 local, state, tribal and federal partners. The DEA Omaha Division, which includes Iowa, Minnesota, Nebraska, North Dakota and South Dakota and four counties in Illinois and Wisconsin, collected 32,713 pounds of medication on April 27.
"National Prescription Drug Take Back Day is more than just a day for people to turn in unwanted, unused and expired medication," DEA Omaha Division Diversion Program Manager William Stockmann said. "Take Back Day provides us with a time to remind our communities about the potential for misuse and abuse of prescription medication. It’s important for each of us to do our part in making sure that medications are properly safeguarded and eventually discarded, removing the temptation for misuse by family and friends."
Individuals unable to attend the Take Back Day event can locate year-round, secure drop-off locations by visiting https://apps2.deadiversion.usdoj.gov/pubdispsearch/spring/main?execution=e1s1. Or, to safely dispose of unwanted medication, remove medicine from its original container, mix it with an undesirable substance, such as used coffee grounds or kitty litter, place the mixture into a sealable bag and then throw the contents into the trash.
For more information on National Prescription Drug Take Back Day, including April 27 results, please visit, takebackday.dea.gov, or contact Omaha Division Public Affairs Specialist Emily Murray at 402-964-7950.
The next National Prescription Drug Take Back Day is set for Saturday, October 26.
Connecticut Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
BOSTON – A Connecticut man pleaded guilty today in federal court in Springfield to a federal firearms charge.
Jermane Merlyn Samuel, 36, of Enfield, Conn., pleaded guilty to one count of receiving and possessing two firearms with obliterated serial numbers. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for July 31, 2019.
On Sept. 20, 2018, Samuel received and possessed a Model 27 .40 caliber Glock pistol and a Model 17 9mm Glock pistol in a hotel parking lot in West Springfield. The serial numbers of both pistols had been obliterated.
Samuel faces a sentence of no greater than five years in prison, 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 Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Katharine A. Wagner of Lelling=s Springfield Branch Office is prosecuting the case.
Columbus man indicted on drug trafficking charges involving fentanyl and methamphetamineRead the Press Release
A federal grand jury returned a four-count indictment charging Andre Little, 33, of Columbus, with distribution of fentanyl and possession with intent to distribute methamphetamine and fentanyl.
The indictment alleges that on or about March 11, 2019 and April 5, 2019, Little knowingly and intentionally distributed fentanyl.
The indictment further alleges that on or about April 11, 2019, Little knowingly and intentionally possessed with the intent to distribute methamphetamine and fentanyl.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Clark County Man Sentenced to 79 Months for Methamphetamine Distribution and Illegal Firearms SalesRead the Press Release
LEXINGTON, Ky. – Adam Ray Dodson, 38, of Winchester, Kentucky, was sentenced to 79 months in federal prison on Monday, by United States District Judge Joseph M. Hood, for distributing quantities of methamphetamine and selling firearms in Clark County, Kentucky, in October and November of 2017.
Dodson had previously plead guilty to charges of distribution of 50 grams or more of methamphetamine, possession of a firearm by a convicted felon, and sale of a firearm to a convicted felon. Between October and November of 2017, Dodson, conducted multiple sales of methamphetamine, totaling over 200 grams in Winchester. In addition to the sales of methamphetamine, Dodson was found to have illegally possessed and sold firearms to an individual he also knew to be a convicted felon.
Under federal law, Dodson must serve 85 percent of his sentence. Upon completion of his imprisonment, he will be under the supervision of the United States Probation Office for a period of four years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart L. Lowery, Special Agent in Charge, ATF, Louisville Field Division; Commissioner Richard Sanders, Kentucky State Police; and Sheriff Berl Perdue, Jr., Clark County Sheriff, jointly made the announcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Canaan Man Sentenced to 156 Months for Transporting and Possessing Child PornographyRead the Press Release
CONCORD - Zachary A. C. Benoit, 28, of Canaan, was sentenced to 156 months in prison for transportation and possession of child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in the summer of 2017, the Grafton County Sheriff’s Department was conducting an online investigation into individuals involved in the trading of illegal images of child pornography. Benoit was identified after he uploaded numerous images of child sexual abuse, which were intercepted by law enforcement. Forensic examinations of several of Benoit’s electronic devices revealed thousands of images and videos depicting the sexual assaults of children including babies and toddlers.
Benoit previously pleaded guilty on November 7, 2018.
“It is critical that we safeguard children from being exploited on the internet” said U.S. Attorney Murray. “To that end, we will continue to allocate substantial resources to stopping the distribution of these terrible images in New Hampshire. In conjunction with our law enforcement partners, we will prioritize the investigation and prosecution of offenses involving child pornography.”
“This is a very appropriate sentence in light of the truly disturbing facts of this case” said Peter C. Fitzhugh, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston. “The successful prosecution of this individual could not have happened without the close coordination that we share with our very dedicated New Hampshire law enforcement partners, and with the Internet Crimes Against Children Task Force, whose work in this case was invaluable.”
This matter was investigated by the Grafton County Sheriff's Department, Lebanon Police Department, Nashua Police Department, members of the Internet Crimes Against Children Task Force, and Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Helen W. Fitzgibbon.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Buffalo Man Who Pointed A Gun at Police Pleads Guilty to Being A Felon in PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Julius Hatten, Jr., 29, of Buffalo, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Charles J. Volkert, Jr. and Justin G. Bish, who are handling the case, stated that on August 5, 2018, Buffalo Police Officers observed a black vehicle, traveling eastbound on Winspear Avenue, violating several New York State traffic laws. Officers conducted a vehicle stop and determined that the defendant was not suitable to operate a motor vehicle. As officers attempted to secure Hatten and place him in handcuffs, he pushed them away, pulled a firearm from his waistband, began to flee on foot, and pointed the firearm in the direction of the officers. The defendant was ultimately apprehended on Highgate Avenue. The firearm was a 9mm pistol.
In August 2011, Hatten was convicted of a felony for Criminal Possession of a Weapon Second Degree in Erie County Court and is legally prohibited from possessing a firearm.
The plea is the is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for August 14, 2019, before Judge Skretny
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Brockton Man Pleads Guilty to Computer Fraud and AbuseRead the Press Release
BOSTON – A Brockton man pleaded guilty today in federal court in Boston in connection with an August 2018 computer intrusion of a Massachusetts company.
Colby Anderson, 25, pleaded guilty to one count of intentionally causing damage to a protected computer without authorization. U.S. District Court Judge William G. Young scheduled sentencing for July 22, 2019. In October 2018, Anderson was arrested and charged by complaint; he was released on conditions.
In July 2018, Anderson was terminated from his position as a Network Operations Center Technician at Blueport Wireless, a high speed internet access provider. Following his termination, Anderson subsequently used his former colleagues’ account login information to delete approximately 120 customer configuration profiles, causing widespread internet service issues at customer facilities.
The charging statute provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Cybercrimes Unit is prosecuting the case.
Brockton Man Indicted for Federal Firearm and Drug OffensesRead the Press Release
BOSTON – A Brockton man was indicted today by a federal grand jury in Boston on firearm and drug charges.
Kawana Tillman, 47, was charged with being a felon in possession of a firearm and ammunition, one count of possession with intent to distribute cocaine base, and one count of possession with intent to distribute more than 28 grams of cocaine base. Tillman has prior felony drug conspiracy and firearm convictions. Tillman was arrested on April 30, 2019, and has been in custody since.
The charge of being a felon in possession of a firearm and ammunition provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of possession with intent to distribute cocaine base carries a sentence of no greater than 30 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of up to $2 million. The charge of possession with intent to distribute 28 grams or more of cocaine base provides for a mandatory minimum sentence of five years and up to 30 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of up to $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; Suffolk County District Attorney Rachael Rollins; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bartow county man charged with employing and exploiting illegal aliensRead the Press Release
ROME, Ga. - Juan Antonio Perez has been indicted on charges that his construction company, Aztec Framing, which operated in northwest Georgia and eastern Tennessee, profited by employing illegal aliens and paying them below-market wages. He has also been charged with being an illegal alien in possession of 14 firearms. Federal law prohibits illegal aliens from possessing firearms.
“Perez not only broke the law by allegedly hiring illegal aliens at below-market wages and paying no taxes, he had a large assortment of weapons including shotguns and pistols that he had acquired through various means other than buying them himself,” said U.S. Attorney Byung J. “BJay” Pak. “Illegal aliens, such as Perez, are not allowed to own firearms at all. We will get to the bottom of how he acquired them.”
“Individuals, like Mr. Perez, who flagrantly violate federal law to give themselves an unfair business advantage are cheating both law-abiding employers and employees exploited by these unfair and illegal labor practices,” said Special Agent in Charge of Homeland Security Investigations Atlanta Nick S. Annan. “This case is an illustration of serious threats to public safety on numerous levels. Homeland Security Investigations will continue to focus not only on workers who violate federal law but also their employers.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: Perez allegedly came to the United States illegally in 1992. He has lived in Bartow County, Georgia, and has operated Aztec Framing at least since 2009. Aztec Framing has offices in Cartersville and Rossville, Georgia, and Hixon, Tennessee.
Perez allegedly employed illegal aliens at below-market rates, provided no benefits or insurance, and did not pay payroll taxes or Social Security. Perez built his family a 7,500-square-foot house, bought other houses where he allowed some of his employees to live, and purchased more than 50 sports cars and heavily customized trucks. Yet, as of April 2019, the Georgia Department of Labor had no record of Perez reporting any income. Perez was also known to collect firearms, and was found to have 14 in his home when agents searched it on April 30, 2019.
Juan Antonio Perez, 46, of Rydal, Georgia, was indicted by a federal grand jury on May 7, 2019. He will be arraigned at 9:30 a.m. on Monday, May 13, 2019, before U.S. Magistrate Judge Walter E. Johnson.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bartow-Cartersville Drug Task Force, with assistance from the Federal Bureau of Investigation, U.S. Customs and Border Protection Air and Marine Operations, the Georgia Bureau of Investigation, the Cherokee Multi-Agency Narcotics Squad, and the Polk County Drug Task Force.
Assistant U.S. Attorney William Traynor is prosecuting the case.
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.
Armed career criminal sentenced to nearly 16 years in federal prisonRead the Press Release
SAVANNAH, Ga: A Savannah man with an extensive criminal history has been sentenced to nearly 16 years in federal prison for illegal gun possession.
Frenchy Gamil Hilliard, 32, was sentenced to 188 months in prison by United States District Judge R. Stan Baker after pleading guilty to possession of a firearm by a convicted felon, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his sentence, Hilliard also will serve five years of supervised release. There is no parole in the federal system.
According to information provided in court filings and in open court, a detective from the Savannah Police Department Special Investigations Unit saw Hilliard, a known convicted felon and convicted drug dealer, with a handgun with an extended magazine in June 2018. The detective saw Hilliard place the gun in his pocket, get into a vehicle and drive away when officers ordered him out of the car. After crashing the vehicle, Hilliard attempted to flee on foot and was captured.
Officers searching the area found the pistol, a black Glock 43 .40 caliber with an extended magazine and one of its serial numbers obliterated. The investigation determined the pistol had been stolen, and a photograph found on Hilliard’s phone showed him brandishing the weapon more than a year before the arrest. Tests also confirmed Hilliard’s DNA was on the stolen pistol and magazine.
Hilliard, determined by the court to be an Armed Career Criminal, has an extensive criminal history dating back more than 15 years, including:
- Seven prior felony convictions;
- Eight prior misdemeanor convictions;
- Nearly 20 violations of court orders and state probation; and,
- Two previous state convictions for being a felon in possession of a firearm.
In addition, Hilliard was on probation for state charges of aggravated assault with a firearm and being a felon in possession of a firearm at the time of his arrest.
“The Armed Career Criminal Act, which carries a sentence of at least 15 years of incarceration, was designed specifically for unrepentant criminals like Hilliard,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “This sentence removes a menace from our community.”
“The defendant had no business carrying a firearm, given his previous criminal conduct,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “This case made the Cuyler-Brownsville neighborhood a safer place.”
This case was investigated by the ATF and the Savannah Police Department, and prosecuted for the United States as a Project Safe Neighborhoods initiative by Assistant United States Attorney E. Greg Gilluly Jr.
Armed Career Criminal Charged with Illegal Possession of FirearmsRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging PERCY LEE STROTHER JR., 47, with two counts of possession of a firearm by a convicted felon. STROTHER will make his initial appearance in U.S. District Court at a later date.
According to the allegations in the indictment, on October 12, 2018, and January 5, 2019, STROTHER was found to be in possession of firearms, namely, a Beretta, Model 92F, 9 millimeter semi-automatic pistol and a Jennings, Model Bryco 59, .380 caliber semi-automatic pistol. Because he has prior felony convictions in Hennepin and Dakota Counties, STROTHER is prohibited under federal law from possessing firearms at any time. If convicted of the charges, STROTHER faces a mandatory minimum sentence of 15 years in federal prison.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, and the Plymouth Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime.
This case is being prosecuted by Assistant U.S. Attorney Bradley M. Endicott.
Defendant Information:
PERCY LEE STROTHER JR., 47
Minneapolis, Minn.
Charges:
- Felon in possession of a firearm (Armed Career Criminal), 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Anadarko Man Pleads Guilty to Running Cockfighting Operation on Indian LandRead the Press Release
OKLAHOMA CITY – DOUGLAS WAYNE BUTLER, 67, has pleaded guilty to aiding and abetting cockfighting, announced First Assistant U.S. Attorney Robert J. Troester.
A federal grand jury indicted Butler on January 15, 2019, for aiding and abetting the sponsoring of animals in a cockfighting operation that was located on his property on Indian land in Caddo County. According to the indictment, Butler was running an interstate animal fighting venture that featured the fighting of gamecocks for the purpose of sport, wagering, and entertainment. A second count charged him with aiding and abetting the possession and receiving of gamecocks for the purpose of cockfighting in interstate commerce. The indictment states Butler engaged in this conduct from January 1, 2015, to March 3, 2016.
According to an affidavit in support of a search warrant, Butler said he held approximately a dozen cockfighting derbies at his residence and that he earned thousands of dollars from cockfighting during 2015. The affidavit explains he held cockfights in a large red barn with an enclosed pit surrounded by bleachers. He allegedly charged $20 per person at the gate and also profited from sales at an on-site concession stand. According to the affidavit, Butler indicated a cockfight could be attended by many as 200 people, some of whom traveled from Nebraska, Arkansas, New Mexico, Arizona, and Colorado.
Butler, a former Caddo County Deputy Sheriff, is alleged to have told a Special Agent with the Bureau of Indian Affairs that he knew cockfighting was illegal under state law but believed he was entitled to hold cockfights on allotted Indian land under the jurisdiction of the Caddo Nation based on an unspecified treaty. It is actually a federal felony to knowingly sponsor or exhibit an animal in a fighting venture in interstate commerce, regardless of whether the fighting takes place on Indian land. It is also a violation of federal law to knowingly attend an animal fighting venture.
On May 6, Butler pleaded guilty to aiding and abetting cockfighting.
At sentencing, he faces a maximum penalty of five years in prison, a fine of $250,000, and three years of supervised release. Sentencing will take place in approximately ninety days.
This case is the result of an investigation by the Bureau of Indian Affairs. Assistant U.S. Attorneys Arvo Q. Mikkanen and Edward J. Kumiega are prosecuting the case.
Reference is made to court filings for further information.
Albany Attorney Pleads Guilty to Defrauding Clients, Law FirmRead the Press Release
ALBANY, NEW YORK – Albert Hessberg III, age 64, an attorney residing in Slingerlands, New York, pled guilty today to stealing at least $2 million in the course of defrauding his former clients and law firm.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
Hessberg admitted to a fraudulent scheme spanning more than a decade, and pled guilty to 1 count each of wire fraud, mail fraud and filing a false tax return.
Hessberg worked for 37 years in the Albany office of the law firm now known as Barclay Damon LLP (“Barclay”), practicing in the area of trusts and estates. The Syracuse-based law firm terminated Hessberg for cause in March 2018.
Starting in 2006 and continuing until his termination in 2018, Hessberg defrauded Barclay and law firm clients, by: stealing at least $2,060,803 entrusted to him as fiduciary and trustee for his clients; stealing funds from one client to replenish the account of another client from whom he had previously stolen; billing clients and receiving payments for legal services he did not perform; and stealing payments for legal services that should have been made to Barclay.
United States Attorney Grant C. Jaquith stated: “Albert Hessberg betrayed his clients, his law firm, his profession, and the courts. He stole $2 million from his clients by taking advantage of their trust, and when they asked questions about their money, he repeatedly lied to them to hide his theft. His guilty plea is the first step in holding him accountable for his despicable fraud. I thank Barclay Damon LLP for reporting this fraud as soon as it was discovered.”
FBI Special Agent James H. Hendricks stated: “At its most basic level, this is a case about greed and the abuse of trust. Albert Hessberg abused his position and defrauded clients of over two million dollars. His clients trusted him with their life savings and now he must face the consequences of his actions. The FBI is dedicated to working with our law enforcement partners to investigate these crimes because of their lasting impact on the lives of the victims and our community as a whole.”
As part of his plea, Hessberg also admitted to filing federal tax returns that were false because he did not report, as income, money that he stole as part of his fraudulent scheme.
Hessberg faces up to 20 years in prison, a maximum $250,000 fine, and up to 3 years of post-imprisonment supervised release, when he is sentenced by United States District Judge Mae A. D’Agostino on September 5, 2019. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
In November 2018, following Hessberg’s arrest on a federal criminal complaint, the Appellate Division, Third Department suspended Hessberg from the practice of law.
This case was investigated by the FBI and Internal Revenue Service-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.