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7 May 2019
Harrison County man indicted on firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Timothy Allen Crowe, of Bridgeport, West Virginia, was indicted by a federal grand today on a firearms charge, United States Attorney Bill Powell announced.
Crowe, age 56, was indicted on one count of “False Statement in Connection with the Acquisition of a Firearm.” Crowe, having been previously convicted of domestic battery, is accused of lying about his previous charges when trying to purchase a 9mm pistol in April 2018 in Marion County.
Crowe faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Guatemalan National Sentenced with Illegal Re-entryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JORGE AGUILAR-PEREZ, age 25, a citizen of Guatemala, was sentenced yesterday after previously pleading guilty to a one-count Bill of Information for illegally re-entering the United States in violation of Title 8, United States Code, Section 1326(a).
According to the Bill of Information, JORGE AGUILAR-PEREZ was found in the United States on or about December 20, 2018, after having been previously removed therefrom on or about May 25, 2006.
JORGE AGUILAR-PEREZ was sentenced to be imprisoned for a total term of 6 months and a $100.00 special assessment.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Greg & Missey Smith Honored for Their Foundation's Crime Prevention, Safety Awareness EffortsRead the Press Release
U.S. Attorney Tim Garrison presents the annual Crystal Kipper & Ali Kemp Award to Missey and Greg SmithKANSAS CITY, Mo. – Tim Garrison, United States Attorney for the Western District of Missouri, presented the annual Crystal Kipper & Ali Kemp Memorial Award today to Greg and Missey Smith, founders of the Kelsey Smith Foundation.
“Kelsey Smith should have celebrated her 30th birthday last Friday,” said Garrison. “Tragically, she was abducted and murdered a few days after graduating from high school in 2007. Her parents, Greg and Missey, have honored her memory and inspired us all by promoting public policies that can save lives. They have devoted themselves to educating people across the country about crime prevention and safety awareness.”
Greg and Missey Smith started the foundation, also known as Kelsey’s Army, after Kelsey was abducted from a local department store on June 2, 2007. Surveillance video showed Kelsey leaving the store after making a purchase and being abducted when she walked to her car. The effort to find Kelsey grew so large the volunteers became known as “Kelsey’s Army.”
Four days after Kelsey’s abduction, Verizon Wireless agreed to hand over the approximate location of Kelsey’s cellphone. Her body was found less than an hour later in Grandview, Mo. Her killer pleaded guilty and was sentenced to life in prison without the possibility of parole.
As a result of that experience, Greg and Missey Smith began advocating to change the law to require phone companies to provide cellphone location data to law enforcement agencies in an emergency. First passed in Kansas in 2009 and later in Missouri, versions of the bill have now been signed into law in 24 states.
The Smiths also have lobbied for the Kelsey Smith Act, a proposed federal law that has been introduced in both the U.S. Senate and U.S. House of Representatives. The Kelsey Smith Act provides law enforcement with a way to quickly ascertain the location of a cell phone if a person is kidnapped or if a missing person is at risk of death or serious physical harm.
The Kelsey Smith Foundation also provides seminars on such topics as safety awareness, an overview for parents, and programs for the law enforcement community.
Missey Smith was one of 12 people and programs honored by the Department of Justice at the annual National Crime Victims’ Service Awards Ceremony in Washington, D.C., on April 12. She received the Ronald Reagan Public Policy Award, which honors those whose leadership, vision and innovation have led to significant changes in public policy and practice that benefit crime victims.
The Crystal Kipper & Ali Kemp Memorial Award
This is the 16th year for the award to be presented in memory of Crystal Kipper and Ali Kemp, two young women who were both fatal victims of tragic crimes. Crystal Kipper was an 18-year-old Gladstone, Mo., resident who was murdered after her car broke down on Interstate 29, just north of Platte City, on Feb. 24, 1997. Ali Kemp was a 19-year-old Blue Valley North High School graduate who was murdered on June 18, 2002, while she worked at the Foxborough neighborhood swimming pool in Leawood, Kan.
The Crystal Kipper & Ali Kemp Memorial Award is presented by the U.S. Attorney’s Office each year to recognize the outstanding work of an individual or organization in recognition of a valued contribution to preventing and responding to the exploitation of children.
Georgia Investment Representative Pleads Guilty to Stealing over $1.4 Million from Elderly Brentwood WomanRead the Press Release
NASHVILLE, Tenn. - May 7, 2019 – Jay Costa Kelter, 49, of Alpharetta, Georgia pleaded guilty today in U.S. District Court, to wire fraud and securities fraud, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According documents filed with the court, between March 2014 and August 2016, Kelter embezzled over $1.4 million from an elderly client who lives in Brentwood, Tennessee. As part of his scheme, Kelter convinced the victim to move her investments from a private investment company to a discount brokerage firm. Kelter used his access to the woman’s accounts to periodically sell securities held in those accounts to pay for transfers to his own pass-through company. On one occasion, Kelter impersonated the victim while confirming a trade in her accounts.
Kelter did not divulge ownership of the pass through company when confronted by the victim, but later admitted that he directed the withdrawals from the accounts to his company. Kelter used portions of the stolen funds to purchase luxury cars, custom jewelry, and vacations, and to repay losses owed to other investment clients.
Kelter faces a maximum sentence of 20 years in prison and a maximum fine of $5,000,000, when he is sentenced on August 28, 2019.
This case was investigated by the Federal Bureau of Investigation and the U.S. Securities and Exchange Commission. Assistant U.S. Attorney Stephanie N. Toussaint and U.S. Department of Justice Trial Attorney Andrew R. Tyler are prosecuting the case.
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Former U.S. Fish and Wildlife Service employee admits to possessing child pornographyRead the Press Release
BILLINGS – Shawn Thomas Conrad, a former U.S. Fish and Wildlife Service employee, admitted during a hearing today to possessing child pornography last year, U.S. Attorney Kurt Alme said.
Conrad, 48, of Billings, pleaded guilty to one count of possession of child porn. Conrad faces a maximum 10 years in prison, a $250,000 fine and five years to life of supervised release.
U.S. District Judge Susan P. Watters presided at the hearing and continued Conrad’s release. Sentencing is set for Sept. 6.
In court documents filed in the case, an investigation of Conrad for a child pornography crime began in early August 2018 by the Billings Police Department, which is a member of the Montana Internet Crimes Against Children Task Force. Conrad was employed at the time by the USFWS. Based on the same underlying investigation, Conrad’s supervisor went to Conrad’s home on Aug. 4, 2018 and seized an agency vehicle. Conrad said his personal hard drive was in the vehicle and asked for the hard drive. The supervisor did not return it. Conrad asked his supervisor again that evening for his hard drive.
The USFWS obtained a search warrant for the hard drive, which was examined. The BPD also served a search warrant at Conrad’s residence and seized a laptop computer, which was examined. Both the hard drive and laptop contained child porn images of children engaged in sexually explicit conduct.
Assistant U.S. Attorney Cyndee Peterson is prosecuting the case, which was investigated by the Montana Internet Crimes Against Children Task Force, FBI, BPD and USFWS.
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Former Penn National Horse Trainer Sentenced to 27 Months in Prison for Misbranding Prescription Drugs on Race DayRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that former Penn National horse trainer Murray Rojas, age 53, of Grantville, Pennsylvania, was sentenced on May 6, 2019, to 27 months’ imprisonment on each of her 14 felony convictions for misbranding prescription drugs on race day and conspiracy. The sentences were ordered to run concurrent to each other. Rojas was also sentenced to serve 2 years of supervised release and to pay a $5,000 fine.
According to United States Attorney David J. Freed, Rojas was convicted by a federal jury on June 30, 2017, of 14 felony counts of misbranding prescription drugs on race day and conspiracy. The crimes involved Rojas directing veterinarians to administer drugs to her horses on race day in violation of track rules and state law. The conspiracy took place between 2002 and 2014, and involved 58 races. Rojas conspired with three veterinarians to have the drugs dispensed and administered to horses on the day they were entered to race.
As part of the conspiracy the veterinarians attempted to conceal this conduct by backdating invoices for the sale and administration of drugs to the horses on race day, as well as the submission of fraudulent veterinarian treatment reports to the Pennsylvania Horse Racing Commission.
The United States Attorney’s Office prosecuted several other individuals as part of this investigation in federal and state court, including:
- Danny Robertson, the official clocker, charged with wire fraud, sentenced to one year probation and ordered to pay a $2,500 fine;
- Craig Lytel, a racing official, charged with wire fraud, sentenced to four months in prison and ordered to pay a $1,000 fine;
- David Wells, owner and trainer, charged with rigging a publicly exhibited contest, sentenced on February 23, 2015, to three months’ imprisonment;
- Patricia Rogers, trainer, charged with rigging a publicly exhibited contest, received an ARD in Dauphin County Court of Common Pleas;
- Samuel Webb, trainer, charged with rigging a publicly exhibited contest, received an ARD in Dauphin County Court of Common Pleas;
- Renée Nodine, veterinarian, charged with misbranding and conspiracy, awaiting sentencing;
- Kevin Brophy, veterinarian, charged with misbranding and conspiracy, awaiting sentencing;
- Fernando Motta, veterinarian, charged with misbranding and conspiracy, awaiting sentencing; and
- Christopher Korte, veterinarian charged with misbranding and conspiracy, awaiting sentencing.
Judge Rambo ordered Rojas to report to a federal prison to be designated by the Bureau of Prisons on June 3, 2019. A decision whether Rojas will be allowed to remain on bail pending an appeal is under advisement by the court.
The case was investigated by the by the Federal Bureau of Investigation, the Pennsylvania Department of Agriculture’s Horse Racing Commission and the Food and Drug Administration, Office of Criminal Investigations. Assistant United States Attorney William A. Behe prosecuted the case.
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Former Ocean County Chiropractor Sentenced to Five Years in Prison for Income Tax Evasion and Failure to File Report of Russian Bank AccountRead the Press Release
TRENTON, N.J. – A former chiropractor with offices in Lakewood, New Jersey, was sentenced today to 60 months in prison for evading income taxes totaling more than half a million dollars from 2012 through 2015 and failing to report a Russian bank account, to which he wired more than $1.5 million, U.S. Attorney Craig Carpenito announced.
Carlo Amato, 57, of Beachwood, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to one count of tax evasion and one count of failure to file a report of foreign financial account (FBAR) while violating another law of the United States and as part of a pattern of illegal activity involving more than $100,000 in a 12-month period. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From 2012 through 2015, Amato operated a chiropractic office in Lakewood through two entities: Chiropractic Care Consultants Inc. and Accident Recovery Physical Therapy. He deposited, or caused to be deposited, checks for chiropractic services into accounts held in the names of his minor children. Amato knew that these checks were taxable as income, but he did not disclose the payments to his accountant, nor did he report them on his tax returns. Amato also failed to report as taxable income certain additional funds that were deposited into Chiropractic Care’s and Accident Recovery’s business bank accounts. For example, Amato reported $0 in taxable income and $0 in tax due on his 2014 income tax return. His taxable income for 2014 was, in fact, $561,258, and Amato admitted that the tax due and owing to the IRS for 2014 was $197,036. Amato admitted that he also evaded more than $300,000 in taxes for the tax years 2012, 2013, and 2015.
Amato, a U.S. citizen, admitted that in 2014, he had an account at UniCredit Bank in Russia. He admitted that he wired more than $1.5 million to Russian bank accounts, including the UniCredit Bank account, and that he knew that he was obligated to report any foreign bank account with an aggregate value of more than $10,000. Amato admitted that he nonetheless failed to file a report of foreign account, commonly known as an FBAR, for the year 2014. Amato also admitted that the funds he failed to report were the product of a fraudulent scheme in which Amato overbilled at least six insurance companies by more than $1 million by billing for services that were never rendered. Amato previously pleaded guilty in Ocean County Superior Court to first degree financial facilitation of criminal activity for money laundering of funds from the overbilling scheme.
In addition to the prison term, Judge Shipp sentenced Amato to three years of supervised release.
Under the terms of his plea agreement, Amato will file amended tax returns and make full restitution for the years 2012 through 2015 and file accurate FBARs for the years 2012 through 2017.
U.S. Attorney Carpenito credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s sentencing. U.S. Attorney Carpenito thanked the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Trenton.
Defense counsel: Thomas R. Ashley Esq., Newark
Former Dracut Nurse Pleads Guilty to Tampering with Liquid MorphineRead the Press Release
BOSTON – A former nurse pleaded guilty in federal court in Boston today to diverting liquid morphine intended for hospice patients at a Lowell nursing home.
Michael Langlois, 49, of Dracut, pleaded guilty to one count of tampering with a consumer product and one count of acquiring a controlled substance by deception and subterfuge. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Aug. 6, 2019.
On Nov. 16, 2016, Langlois, then a registered nurse, tampered with bottles of liquid morphine that doctors had prescribed for two elderly hospice patients under his care at a Lowell nursing home. In each instance, Langlois took the liquid morphine, a schedule II narcotic used to treat pain, for his own use and then replaced it with saline or Benadryl in an attempt to cover up his crime. As a result his conduct, the patients in Langlois’s care received a less potent dose of the painkiller than they had been prescribed.
On or about April 3, 2017, Mr. Langlois diverted for his own use liquid morphine from a bottle prescribed to an elderly hospice patient under his care at a Melrose nursing home. To conceal his wrongful conduct, Mr. Langlois falsely represented in the medical file of one of his patients, and in the nursing home’s Medication Administration Record, that the liquid morphine for that patient was pure, when that was not in fact the case.
The charge of tampering with a consumer product provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of acquiring a controlled substance provides for sentence no greater than four years in prison, one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Commissioner Monica Bharel, M.D., M.P.H., of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Patrick Callahan of Lelling’s Healthcare Fraud Unit is prosecuting the case.
Federal Prosecutor Recognized with the Outstanding Safety and Security AwardRead the Press Release
United States Attorney Trent Shores announced today that Assistant U.S. Attorney Ryan Roberts was awarded the Outstanding Safety and Security Award for his dedication to prosecuting violent crime in Oklahoma.
The award was part of the Public Service Recognition Awards for 2019, hosted by the Oklahoma Federal Executive Board. Roberts was one of six final nominees for the award from across the State of Oklahoma.
“Assistant U.S. Attorney Ryan Roberts is a talented and dedicated federal prosecutor,' said U.S. Attorney Shores. "He approaches his job as a public servant with great humility and selflessness. This recognition was well-deserved and hard-earned. The U.S. Attorney’s Office is lucky to have him on our team.”
In 2018, Roberts charged 77 federal criminal defendants with crimes involving guns and violence. His tenacity and leadership in the courtroom led to 39 guilty pleas and multiple convictions during two contested jury trials in 2018. The remainder of defendants have pleaded guilty in 2019 or their cases are continuing in federal court.
“This award reflects the commitment of an entire team of professionals,” said Assistant U.S. Attorney Ryan Roberts. “I was honored today to represent the hard work from police officers, agents, and the staff here at the U.S. Attorney’s Office. It is truly a team effort that led to these convictions.”
Roberts’ numerous prosecutions directly contributed the Justice Department’s violent crime reduction initiative, Project Safe Neighborhoods, which was reinvigorated in October 2017. The initiative focuses on reducing gun crime and prosecuting violent offenders, often with multiple felony convictions. To support the initiative, the United States Attorney’s Office for the Northern District of Oklahoma increased its prosecutions by more than 200 per cent, when compared to 2017, and focused on strengthening partnerships with local, state, tribal and federal law enforcement partners. This corresponded with a drop in murder and other violent crime in Tulsa. Violent crime in east Tulsa decreased significantly. Aggravated assaults decreased by 25 per cent, robberies by 12 per cent, and rapes by 30 per cent. Moreover, Tulsa’s violent crime statistics in 2018 reflected four-year lows throughout Tulsa in homicides, aggravated assaults, robberies, commercial and residential burglaries, and larcenies.
Project Safe Neighborhoods is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools. The initiative involves a partnership of federal, state, and local authorities, uniting their efforts and leveraging existing and new resources. The U.S. Attorney’s Office and its partners tailor their efforts to meet their own district’s unique needs, helping ensure the safety of communities in the Northern District of Oklahoma.
Federal Judge Convicts Mason County Man of Carjacking and Firearms OffenseRead the Press Release
HUNTINGTON, W.Va. – A Mason County man who threatened two employees of the Putnam Public Service District with a machinegun and stole their company truck last year in Teays Valley was convicted today after a one-day bench trial of multiple federal offenses. Justin Michael Wilson, 20, was convicted of carjacking and using, carrying, and brandishing a machinegun during and in relation to a crime of violence. Wilson also previously pled guilty prior to trial to unlawful possession of a machinegun and possession of an unregistered machinegun. Stuart commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and multiple agencies who responded to the crimes including the Mason County Sheriff’s Department, the Jackson County Sheriff’s Department, the Kanawha County Sheriff’s Department, the Putnam County Sheriff’s Department, the Hurricane Police Department, and the West Virginia State Police.
“There’s no place for carjackers in West Virginia. That’s why Wilson is facing a mandatory 30 years in prison with no parole in the federal system,” said United States Attorney Mike Stuart. “Wilson’s violent, criminal acts put many lives in danger. I want to thank the law enforcement officers who acted heroically to bring Wilson into custody and Assistant United States Attorneys Joe Adams and Stephanie Taylor for their excellent work in this case.”
On January 11, 2018, Wilson drove a vehicle he had stolen earlier in the day in Jackson County to the Liberty Square Shopping Plaza in Teays Valley. While in route to the shopping plaza, Wilson acquired a machinegun and engaged deputies in Kanawha County in a chase, eventually driving off-road and jumping his vehicle over railroad tracks to get away. When he arrived at the shopping plaza, Wilson approached two employees of the Putnam Public Service District eating lunch in their company truck. Wilson brandished the machinegun, demanded the men transfer items from the stolen vehicle to the PSD truck, and stole the truck.
A West Virginia State Police Trooper and Deputies with the Putnam County Sheriff’s Department responding to calls at the shopping plaza for assistance immediately saw Wilson fleeing in the truck. Wilson then entered Interstate 64 headed westbound and led the responding units on another high speed chase. During the pursuit, Wilson pointed the machinegun out of the truck at the Trooper, ran vehicles off the road, crossed the median at a designated emergency vehicle crossing, traveled westbound in the eastbound lanes, exited the interstate by traveling the wrong way up the entrance ramp at Hurricane, and eventually crashed the truck which was destroyed by fire. Wilson was pulled from the burning truck by the Trooper and placed under arrest.
Wilson will be sentenced on August 12, 2019, and faces sentences of up to 15 years in federal prison for the carjacking conviction and up to 10 years in federal prison each for illegally possessing a machinegun and possessing an unregistered machinegun. Wilson also faces a mandatory 30 year sentence for using, carrying, and brandishing a machinegun during and in relation to the carjacking.
Assistant United States Attorneys Joseph F. Adams and Stephanie S. Taylor handled the prosecution. United States District Judge Robert C. Chambers presided over the trial.
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FBI Wanted Fugitive Apprehended in TulsaRead the Press Release
United States Attorney Trent Shores today announced the apprehension of a fugitive on the FBI’s Wanted List who was charged in a 2014 federal indictment for alleged drug and gang conspiracy.
The Tulsa Police Department’s Special Investigations Division arrested Rodney Roy Parker, 47, on Monday in Tulsa. Parker was a fugitive for nearly five years.
Law enforcement originally issued an arrest warrant for Parker on Aug. 13, 2014. He was wanted on federal charges related to the FBI and Tulsa Police Department’s drug investigations titled “Operation Battlefield” and “Battlefield Aftermath”. The resulting indictment alleged that the Hoover Crips distributed $10 million worth of cocaine from Mexican cartels, murdered at least one witness, and had a vast network of co-conspirators.
“Justice never sleeps. Neither does the Tulsa Police Department nor the FBI. Rodney Parker learned that firsthand. You can try to run, but we will find you,” said U.S. Attorney Shores. “The tenacity of Detective Jesse McNeal, the Tulsa Police Department’s Special Investigation Division, and the FBI’s Tulsa Resident Office are to be commended. Thanks to their diligence, Parker will now answer for his alleged crimes in a court of law.”
“We could not be more proud of Detective McNeal,” said Tulsa Police Chief Chuck Jordan. “We are glad that this final arrest will bring Battlefield to its conclusion. We appreciate the collaboration with our federal partners that resulted in over 50 arrests in this significant drug case.”
Acting Special Agent in Charge, Melissa Godbold, FBI Oklahoma City Division stated, "The arrest of Rodney Parker is a testament to our law enforcement partnerships and the countless hours dedicated to bringing Mr. Parker to justice. The FBI is extremely proud to be a part of the investigative work that resulted in removing another dangerous criminal from the streets of Tulsa."
Parker is charged in the indictment with conspiracy to possess with intent to distribute, distribution and to manufacture 280 grams of “crack” cocaine, intent to distribute 5 kilograms or more of cocaine, and intent to distribute 100 kilograms or more of marijuana. Parker is also charged with multiple counts of using a communication facility in the commission of a drug trafficking felony.
Parker is currently in the custody of the U.S. Marshals Service. He faces a potential maximum sentence of life imprisonment. He is scheduled to be arraigned in federal court Tuesday at 2 pm.
“Operation Battlefield” and “Battlefield Aftermath” were large-scale law enforcement operations that started in 2011 targeting “crack” cocaine distribution locations in Tulsa. The FBI, Tulsa Police Department, Broken Arrow Police Department, Drug Enforcement Administration, and Bureau of Alcohol Tobacco, Firearms and Explosives conducted the investigations, which spanned four states and culminated in 2014 with 51 individuals indicted for drug conspiracy. Assistant U.S. Attorney Robert T. Raley is prosecuting the case.
El Dorado Springs Woman, New Jersey Man Indicted for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – An El Dorado Springs, Mo., woman and a North Plainfield, New Jersey, man were indicted by a federal grand jury today for producing child pornography.
Amanda Errin Hunt, 39, and Daniel Thomas Baggott, 36, were charged in a four-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint that was filed on April 11, 2019. Hunt and Baggott remain in federal custody.
The federal indictment charges Hunt and Baggott with one count each of using a child victim to produce child pornography from Aug. 5, 2017, to April 9, 2019. The indictment also charges each of the defendants with one count of using a cell phone to induce the child victim to engage in illegal sexual activity.
According to an affidavit filed in support of the original criminal complaint, the investigation began when Facebook initiated a CyberTip with the National Center for Missing and Exploited Children on April 7, 2019. Facebook reported that Hunt and Baggott exchanged images of child pornography through Facebook Messenger. Investigators also discovered sexually explicit messages, along with shared images of child pornography, between Hunt, Baggott, and the 15-year-old victim. Hunt told investigators that Baggott was her boyfriend.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cybercrime Task Force, and the New Jersey Internet Crimes Against Children Task Force.
Project Safe Childhood
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."Department of Justice Issues Guidance on False Claims Act Matters and Updates Justice ManualRead the Press Release
The Civil Division today announced the release of formal guidance to the Department of Justice’s False Claims Act litigators. The False Claims Act provides important remedies for fraud committed against the United States. The guidance announced today explains the manner in which the Department of Justice awards credit to defendants who cooperate with the Department during a False Claims Act investigation. The formal policy, included as of today in the Justice Manual Section 4-4.112, identifies the type of cooperation eligible for credit.
“The Department of Justice has taken important steps to incentivize companies to voluntarily disclose misconduct and cooperate with our investigations; enforcement of the False Claims Act is no exception,” Assistant Attorney General Jody Hunt said. “False Claims Act defendants may merit a more favorable resolution by providing meaningful assistance to the Department of Justice – from voluntary disclosure, which is the most valuable form of cooperation, to various other efforts, including the sharing of information gleaned from an internal investigation and taking remedial steps through new or improved compliance programs.”
Under the policy, cooperation credit in False Claims Act cases may be earned by voluntarily disclosing misconduct unknown to the government, cooperating in an ongoing investigation, or undertaking remedial measures in response to a violation. Even if the government already has initiated an investigation, for example, a company may receive credit for making a voluntary self-disclosure of other misconduct outside the scope of the government’s existing investigation that is unknown to the government. Similarly, a company may earn credit by preserving relevant documents and information beyond existing business practices or legal requirements, identifying individuals who are aware of relevant information or conduct, and facilitating review and evaluation of data or information that requires access to special or proprietary technologies.
Under the policy, the Department of Justice will take into account corrective action that a company has taken in response to a False Claims Act violation. Such remedial measures may include undertaking a thorough analysis of the root cause of the misconduct, appropriately disciplining or replacing those responsible for the misconduct, accepting responsibility for the violation and implementing or improving compliance programs to prevent a recurrence.
Most frequently, cooperation credit will take the form of a reduction in the damages multiplier and civil penalties. If appropriate, the Department may also notify a relevant agency about the company’s voluntary disclosure, cooperation, or remediation so that the agency can take those actions into account in deciding how to apply administrative remedies. And the Department may publicly acknowledge the company’s cooperation.
For the full policy, click here.
Defendant Pleads Guilty in New Case Associated with Online Romance Money Laundering ScamRead the Press Release
COLUMBUS, Ohio – A second case has been charged in the Southern District of Ohio related to an online romance money laundering scam.
Eric Y. Banahene, 36, of Columbus, Ohio, offered a guilty plea in U.S. District Court today for conspiring to commit money laundering and concealment money laundering (each punishable by up to 20 years in prison), as well as transactional money laundering (punishable by up to 10 years in prison).
Banahene admitted that he conspired with others to launder the proceeds of online romance scams and agreed to pay approximately $629,000 in restitution.
Six of eight Central Ohio defendants originally charged on Valentine’s Day last year have also offered guilty pleas in U.S. District Court. Two of the defendants remain fugitives.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, William Cheung, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service, Pittsburgh Division, and Angie Salazar, Acting Special Agent in Charge, Homeland Security Investigations (HSI) announced the pleas offered today before Magistrate Judge Norah McCann King.
Those originally charged in the conspiracy include: Kwabena M. Bonsu, Kwasi A. Oppong, Kwame Ansah, John Y. Amoah, Samuel Antwi, King Faisal Hamidu, Nkosiyoxoxo Msuthu and Cynthia Appiagyei.
Ansah and Antwi are at-large.
According to court documents, individuals committing fraud created several profiles on online dating sites. They then contacted men and women throughout the United States, Canada, and other countries with whom they cultivated a sense of affection, and often, romance.
After establishing relationships, perpetrators of the romance scams requested money, typically for investment or need-based reasons and provided account information and directions for where money should be sent. In part, these accounts were controlled by the defendants. The funds were not used for the investment or need-based reasons provided.
Defendants laundered the funds from the scheme, using companies and bank accounts in their control. In furtherance of the scheme, the co-conspirators created several companies, some of which were shell companies, to help attempt to hide the true nature of their proceeds. They withdrew the proceeds in cash, wired funds to their coconspirators and to other accounts, and used the fraud proceeds to purchase salvaged vehicles sold online. The cars were commonly exported to Ghana.
The purchase and shipment of vehicles helped conceal the fact that members of the conspiracy were sending proceeds of romance fraud overseas. Some members of the conspiracy found people in Ghana who wanted to purchase vehicles. The people in Ghana who wanted the cars would pay the perpetrators of the romance fraud scheme in Ghana. Under this method, money did not have to be wired overseas, which would have risked attracting the scrutiny of financial institutions.
Banahene admitted to conspiring with Bonsu and others to launder more than $629,031.
Defendants originally charged in the conspiracy admitted that they collectively laundered more than $3.3 million in proceeds from romance scams.
“These defendants helped conceal the wrongdoing of those who preyed on men and women from throughout the U.S., Canada, and abroad through the ploy of intimacy when the bottom line is all they really wanted was their money,” stated William Cheung, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “This case demonstrates how the U.S. Attorney’s Office and federal law enforcement will band together to help put an end to criminal behavior of those who prey on individuals for their personal financial gain. IRS criminal investigators will continue to use their financial expertise to identify and trace laundered funds in these types of fraud schemes.”
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, U.S. Postal Inspection Service and HSI, as well as Assistant United States Attorney Peter K. Glenn-Applegate, who is prosecuting the case.
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Coral Springs Man Sentenced to More Than Four Years in Federal Prison for Check Counterfeiting SchemeRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Allen Griffin (23, Coral Springs) to four years and nine months in federal prison for his role in a check counterfeiting scheme. The court also ordered Griffin to pay nearly $80,000 in restitution to financial institutions. Griffin had pleaded guilty on February 21, 2019, to seven counts of bank fraud and one count of conspiracy to commit bank fraud.
According to court documents, during the summer of 2018, Griffin and his co-conspirators created counterfeit checks and obtained access to individual bank accounts into which they deposited the counterfeit checks. Griffin and his co-conspirators then withdrew the funds from those accounts before the fraud was detected. Griffin and his co-conspirators deposited counterfeit checks totaling more than $370,000 into Orlando-area banks.
On August 3, 2018, Griffin was arrested at a hotel in Orlando. He had blank check stock paper in his car and hotel room, a printer and laptop that he had used to create counterfeit checks, computerized images of signatures used on the counterfeit checks, ATM cards that had been used in the check fraud scheme, and an ATM receipt from one of the fraudulent transactions. Griffin was also captured on bank surveillance video depositing counterfeit checks and making withdrawals from accounts where the counterfeit checks had recently been deposited.
Griffin’s co-defendants, Wesley Anderson and Christopher Stewart, have both pleaded guilty and are scheduled to be sentenced in July 2019.
This case was investigated by the United States Secret Service, with assistance from the Orange County Sherriff’s Office. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
Convicted Felon Sentenced for Shooting at Federal AgentsRead the Press Release
VICTORIA, Texas – A 30-year-old Cuero resident has been ordered to federal prison following his conviction of assault on a federal agent and related firearms charges, announced U.S. Attorney Ryan K. Patrick. Joseph Brent Benoit pleaded guilty Jan. 7, 2019.
Today, Senior U.S. District Judge John D. Rainey sentenced Benoit to 60 months for the assault on a federal agent and being a felon in possession of a firearm. He was also ordered to serve a 120-month term of imprisonment for discharging a firearm in relation to a crime of violence which must be served consecutively to the other sentence imposed.
On supervised release when he committed this offense, Judge Rainey further ordered Benoit also to serve 30 months on the revocation on that term, 10 of which was to be served consecutively to the new sentence.
The total 190-month prison term will be immediately followed by three years of supervised release.
On Aug. 8, 2017, deputies with the U.S. Marshals Service (USMS) were attempting to execute a felony arrest warrant for Benoit. When officers observed Benoit driving a black Chevrolet truck in Dewitt County, they requested the assistance of local law enforcement in stopping the vehicle. At that time, Benoit briefly stopped but then fled in the vehicle. Authorities pursued him until coming to a stop at his residence.
Benoit exited the truck and ran to the residence while carrying an assault rifle. Shortly thereafter, agents heard a single gunshot and immediately retreated to a position of safety and cover outside the residence. Law enforcement verbally attempted to get Benoit to exit the location, but were unsuccessful.
After a multi-hour stand-off, law enforcement officers were able to gain entry into the residence and located Benoit hiding in a crawl space under the floor that was accessed by a hidden door in the floor of the residence. At the time Benoit was arrested and taken into custody, USMS deputies observed the assault rifle laying on the ground next to him - an AR-15 style, .223 caliber semi-automatic rifle. During a search of Benoit, officers discovered 37 rounds of .223 caliber ammunition in his pants pockets. Benoit had previously been convicted of a felony and is prohibited by federal law from possessing firearms and ammunition.
After authorities secured the scene, they discovered a round hole in the glass on the front door that was consistent in size with a .223 caliber bullet. Based on the damage surrounding the hole, it appeared the bullet was fired from inside the residence. Federal agents were able to locate a fired .223 caliber casing inside the residence and the fired .223 caliber bullet outside in a wooden railing along the approach to the front door.
Benoit has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility.
USMS, the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Cuero Police Department and Texas Rangers conducted the investigation with the assistance of the Corpus Christi Police Department Bomb Squad, Dewitt County Sheriff’s Office, Victoria Police Department, Texas Department of Public Safety, and the Victoria County Sheriff’s Office. Assistant U.S. Attorneys Patti Booth and Lance Watt are prosecuting the case.
Company Controller Pleads Guilty to Fraud Charges for Failing to Report $2.8 Million He Embezzled from EmployerRead the Press Release
LOS ANGELES – A controller for a commercial printing company has pleaded guilty to tax and mail fraud charges for embezzling $2.8 million from his employer and failing to report the stolen funds as income to the Internal Revenue Service.
Sean Edin Talaee, 62, of Glendale, pleaded guilty on Monday to one count of mail fraud and one count of subscribing to a false income tax return. United States District Judge Otis D. Wright II has scheduled an August 19 sentencing hearing, where Talaee will face a statutory maximum sentence of 23 years in federal prison.
According to his plea agreement, between October 2015 and June 2018, Talaee worked as the controller overseeing the accounting and tax payments of Printograph, Inc., a Burbank-based commercial printing company that does business as GotPrint.com. During this time period, Printograph made a series of periodic estimated tax payments, which were based on the company’s expected gross income, deductions, and credits for each year. To enable these estimated tax payments, Talaee brought company checks to Printograph’s president and sole owner – who had signing authority for the company’s bank account – for her signature prior to their submission to the IRS.
On at least eight separate occasions, Talaee obtained company checks from Printograph’s president but instead inserted his own taxpayer information when filling out the IRS voucher forms that accompanied the estimated tax payments. By using his own information – and not the company’s – Talaee was able to claim the estimated tax payments for himself and caused the IRS to credit the payments to his own personal account, thereby embezzling the funds from Printograph and effectively laundering the embezzled proceeds through the IRS.
During the course of the scheme, Talaee embezzled $2.8 million from his employer and falsely claimed estimated tax payments in that amount for the years 2015, 2016, and 2017, according to court documents. These estimated tax payments allowed Talaee to receive a total of $2,778,994 in fraudulent tax refunds for these years, court papers state. Talaee failed to report the embezzled money as income for these tax years, causing a total tax loss of $740,085.
This case was investigated by IRS Criminal Investigation and the Federal Bureau of Investigation.
This matter is being prosecuted by Assistant United States Attorney Alexander Wyman of the Major Frauds Section.
Cobleskill Man Sentenced to 15 Years for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Jason M. VanBuren, age 44, of Cobleskill, New York, was sentenced today to serve 180 months in prison for receiving child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
At sentencing, Senior United States District Judge Gary L. Sharpe concluded that VanBuren also engaged in a pattern of activity involving the sexual abuse of a female child between the ages of 12 and 15, which Judge Sharpe was permitted to take into account in sentencing the defendant.
Judge Sharpe also sentenced VanBuren to a life term of supervised release, to begin following his term of imprisonment. VanBuren will be required to register as a sex offender following his release from prison.
VanBuren pled guilty on January 2, 2019 to an indictment charging two counts of receiving child pornography.
As part of his plea, VanBuren admitted using two smartphones equipped with instant messaging and file-sharing applications to download child pornography via the Internet. Overall, VanBuren downloaded and retained over 1,000 images and videos depicting child pornography.
This case was investigated by the FBI, the Cobleskill Police Department, and the New York State Police Computer Crimes Unit, and was prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Chickasha Bank Robber ArrestedRead the Press Release
OKLAHOMA CITY – DWAYNE EDWARD RASMUSSEN, 65, has been charged with robbing the Community Bank of Oklahoma in Chickasha, announced First Assistant U.S. Attorney Robert J. Troester.
According to an affidavit in support of a criminal complaint, a man entered the Chickasha branch of Community Bank of Oklahoma at approximately 9:15 a.m. on April 30, 2019, and told a bank employee: "Give me all your 50’s and 100’s." After the employee complied, he allegedly said: "That’s not enough. Give me all your money." He is alleged to have taken virtually all the money from the three tellers’ drawers, for a total reported loss of $10,474. The affidavit states that while he did this, he brandished what appeared to be a pistol with a green grip. When he entered the bank, the affidavit explains, he placed a large sponge at the base of the inside door of the "mantrap" at the bank’s entrance so the door would not close.
Based on video surveillance from the bank and a church across the street, eyewitness accounts, and interviews of his acquaintances, FBI agents determined Rasmussen was the primary suspect. He was arrested on May 6 in downtown Oklahoma City.
Rasmussen made his initial appearance during the afternoon of May 6 before U.S. Magistrate Judge Gary M. Purcell. A preliminary and detention hearing will take place before Judge Purcell on May 9.
If found guilty of bank robbery, Rasmussen faces a maximum potential penalty of twenty years in prison, three years of supervised release, a fine of $250,000, and mandatory restitution.
This case is a result of an investigation by the FBI Oklahoma City Division and the Chickasha Police Department. Assistant U.S. Attorneys Wilson McGarry and Mary E. Walters are prosecuting the case.
The public is reminded that this charge is merely an allegation and that Rasmussen is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
Chester County Sheriff, Lieutenant, and Chief Deputy Indicted on Federal ChargesRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Chester County Sheriff George Alexander “Big A” Underwood, 55, of Chester; Chester County Sheriff’s Office Lieutenant Johnny Ricardo Neal, Jr., 39, of Lancaster; and Chester County Sheriff’s Office Chief Deputy Robert Andrew Sprouse, 44, of Chester, were indicted in federal court on an eight-count indictment related to a conspiracy to cover up an unlawful arrest and an excessive use of force.
“Today, we announce the worst kind of charges: Allegations of wrongdoing on the part of law enforcement,” said U.S. Attorney Lydon. “Those who swear to protect and uphold the law, while at the same time using their positions of power to hide their own violations of the law, will be held accountable. The American system of government depends on those in power obeying the rules and ensuring that all individuals are treated fairly and equally.”
Count One of the Indictment alleges that on November 20, 2018, law enforcement personnel from Chester County Sheriff’s Office, including Underwood, Neal, and Sprouse, responded to a car accident and fleeing suspect in Fort Lawn. A resident living nearby, identified in the Indictment as K.S., used his cellphone to live-stream the law enforcement activity. Underwood asked K.S. to stay on his porch, but K.S. remained in his yard. Underwood returned 25 minutes later, directing K.S. to retreat to his porch.
Underwood then followed K.S. onto his porch, lunged out to grab and restrain K.S. by his torso, and demanded that K.S. turn over his cellphone. After restraining K.S., Underwood stated that he was attempting to place K.S. under arrest. Neal placed K.S. in handcuffs and escorted him to a vehicle for transport to the detention center. In doing so, Neal knocked K.S. to the ground while K.S. was restrained in handcuffs, injuring K.S.’s head and elbow. Neal then directed the transport office to place a “hold” on K.S., causing him to be held in jail for three nights.
Underwood and Sprouse learned that K.S. had live-streamed the video from his cellphone onto the Internet. Underwood and Sprouse then announced that a radio had been lost during the seizure of K.S. Sprouse and Neal then directed subordinate deputies to draft a search warrant that would allow them to enter K.S’s home. Sprouse entered K.S.’s home without a warrant, searching for the cellphone. He directed a subordinate deputy to dial a phone number in an effort to identify the target phone by making it ring. Sprouse ultimately removed a cellphone from K.S’s home without consent. Sprouse then delivered that phone to a Sheriff’s deputy in charge of evidence collection.
In January 2019, Sprouse and Neal created an incident report containing false statements about K.S.’s seizure, and Underwood and Sprouse created and signed a disciplinary report shifting the blame to the deputy in charge of evidence collection for taking the phone following the seizure of K.S. Also in January 2019, Underwood and Sprouse made false statements to the Federal Bureau of Investigation (FBI) concerning the seizure of K.S. and the cellphone.
This Count carries a maximum penalty of five years in federal prison and a fine of $250,000.
Count Two alleges that Underwood violated K.S.’s rights while acting under color of law by seizing K.S. without probable cause to believe K.S. committed a crime, causing him to be detained in jail for three nights. This Count carries a maximum penalty of one year in federal prison.
Count Three alleges that Neal violated K.S.’s rights while acting under color of law by knocking K.S. to the ground while he was handcuffed, resulting in bodily injury to K.S. This Count carries a maximum penalty of 10 years in federal prison.
Count Four alleges that Underwood and Sprouse tampered with the cellphone, attempting to alter, destroy, or conceal it with the intent to impair its integrity or availability for use in the federal case involving the deprivation of K.S.’s rights. This Count carries a maximum penalty of 20 years in federal prison and a fine of $250,000.
Count Five alleges that Neal and Sprouse falsified a record with the intent to impede a federal investigation by creating a false incident report indicating that K.S. repeatedly left his yard to enter the roadway and that K.S. directed profane language toward them – when in fact K.S. did neither – and caused that report to go to the FBI. This Count carries a maximum penalty of 20 years in federal prison and a fine of $250,000.
Count Six alleges that Underwood and Sprouse falsified a record with the intent to impede a federal investigation by creating and signing a disciplinary report shifting blame to the deputy in charge of evidence collection for taking the cellphone following K.S.’s seizure, and caused that report to go to the FBI. This Count carries a maximum penalty of 20 years in federal prison and a fine of $250,000.
Count Seven alleges that Underwood made a false statement to the FBI on May 3, 2019, representing that he first viewed K.S.’s video recording about a week after the incident, when in fact he viewed the recording on the date of the incident. This Count carries a maximum penalty of five years in federal prison and a fine of $250,000.
Count Eight alleges that Sprouse made a false statement to the FBI on January 8, 2019, representing that he did not know how a cellphone was removed from K.S.’s home, when in fact he removed the phone. This Count carries a maximum penalty of five years in federal prison and a fine of $250,000.
“We will never shy away from bringing these types of cases,” continued U.S. Attorney Lydon. “We will work day in and day out to make sure our citizens in Chester and across South Carolina can have confidence in their public servants, their government, and certainly their police officers.”
“It is paramount that law enforcement maintain the trust of the public which it serves,” said Jody Norris, Special Agent in Charge of the FBI. “These charges are a reminder that nobody is above the law. We will continue to aggressively investigate allegations of law enforcement misconduct, and we are grateful to the South Carolina Law Enforcement Division for their assistance in this case.”
Underwood, Neal, and Sprouse will make their initial appearances at 10:00 a.m. on Tuesday, May 21, at the Matthew J. Perry Federal Courthouse in Columbia.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Alyssa Leigh Richardson and William Camden Lewis of the Columbia office.
U.S. Attorney Lydon stated that all charges in the Indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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20190507_-_indictment.pdfBurnham Man Sentenced to 37 Months for Illegal Possession of a FirearmRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced Matthew Johnson, 39, of Burnham, Maine, was sentenced today in U.S. District Court by Judge Lance E. Walker to 37 months in prison and three years of supervised release for being an unlawful user of heroin and bath salts in possession of a firearm. The defendant pleaded guilty on June 21, 2018.
Court records reveal on April 20, 2017, officers from the Westbrook and Scarborough Police Departments stopped the defendant’s vehicle which had reportedly fled the scene of an accident. A search of the vehicle revealed controlled substances, drug paraphernalia and a locked safe. Inside the locked safe, officers found a fully loaded .357 Magnum revolver, bath salts and other drugs. The defendant admitted he was an addict. The ensuing investigation revealed that the defendant had purchase the revolver in Bangor and was an unlawful user of heroin and bath salts.
In imposing the sentence, Judge Walker noted the “deadly and destructive” influence of the combination of illegal drug use and firearm possession within our society.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine Drug Enforcement Agency as well as the Westbrook and Scarborough Police Departments.
Boston Man Pleads Guilty to Business Loan SchemeRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday in federal court in Boston in connection with making false statements on a loan application.
Alexander Grinis, 47, of Jamaica Plain, pleaded guilty to one count of false statements on loan applications. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Aug. 7, 2019. In June 2018, Grinis was arrested and charged with co-defendant Igor Mosieev, 59, of Newton, who pleaded guilty on May 3, 2019.
Grinis was the manager of Eastern Bank in Auburndale. Among his responsibilities were assisting customers with opening and closing accounts and applying for loans and lines of credit. In approximately February 2015, Grinis assisted Mosieev in opening a checking and savings account at Eastern Bank with the license and Social Security card of another individual, without the knowledge or consent of that person. Later that year, Grinis assisted Mosieev in adding the individual to a business account in the name of TFC Enterprises, LLC. Thereafter, Moiseev forged the individual’s name on applications for two purported business loans. On each loan application, Grinis falsely certified that he had complied with all bank procedures and, as a result, the loans were approved. The proceeds of the two loans were subsequently distributed to the business checking account and Moiseev forged the individual’s name on checks and withdrew money from the account to pay for his own personal expenses. In addition, Moiseev, with Grinis’ assistance, caused proceeds from the business checking account to be wire transferred to Russia, Canada, and elsewhere overseas using the individual’s name. Both loans defaulted and were never paid back to Eastern Bank, resulting in a loss of over $90,000.
The charge of false statements provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of up to $250,000, or twice the gross gain/loss whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Laura J. Kaplan of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
Bethlehem Man Found Guilty of Entering United States Illegally for Fourth TimeRead the Press Release
EASTON, PA – U.S. Attorney William M. McSwain announced that Martin Castro-Molina, a/k/a “Jose Noe Galsano-Castellano”, 42, of Bethlehem, PA was found guilty by a federal jury of one count of reentering the United States after deportation. He was removed from the United States on three prior occasions between 2008 and 2017, before being found unlawfully in the United States on or about August 24, 2018. At the time of his arrest, the defendant gave multiple fictitious names to authorities.
“The defendant in this case clearly has no respect for the laws of this country,” said U.S. Attorney McSwain. “After being removed on three previous occasions, Castro-Molina decided yet again to snub our immigration system by entering the United States illegally. I am glad that the jury in this case agreed and held him responsible for his actions.”
“The brave men and women of ICE contribute to making our communities safer by arresting criminal aliens like Martin Castro-Molina,” said Simona L. Flores, Field Office Director for ICE Enforcement and Removal Operations (ERO) Philadelphia. “We will ensure that aliens who may pose a threat to our communities are not released onto the streets to potentially reoffend and harm individuals living within our communities.”
The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement, and is being prosecuted by Assistant United States Attorneys Meaghan Flannery and Jose Arteaga.
210 Months Prison Sentence for Oregon Sex Offender Caught Luring, Threatening Young Columbus Girl OnlineRead the Press Release
COLUMBUS – A federal judge handed down a 210-month sentence today to an Oregon man guilty of Coercion and Enticement of a Minor, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Colby Ray Cochran, 24, of Warrenton, Oregon, is a registered sex offender in his home state, having been convicted in July 2016 of the state felony charge of Luring a Minor. Mr. Colby was on probation, and was active on the Oregon sex offender registry, at the time he committed the federal sex crime in Georgia. The Honorable Clay Land presided over Tuesday’s sentencing in Columbus federal court, additionally sentencing Mr. Cochran to 15 years of supervised release. There is no parole in the federal system.
Mr. Cochran admitted in his plea agreement to first interacting with the 15-year-old female victim “Jane Doe” on Instagram, a popular social media application. Jane Doe, who was living on Fort Benning, a military installation in Columbus, first became active on Instagram and Snapchat in August 2017, and shortly thereafter made contact with Mr. Cochran on Instagram, under the username “utopic_ecchi” with a profile picture of a distinctive Japanese female anime character. They initially engaged in typical friendly small talk, but as their online relationship progressed, Mr. Cochran began asking Jane Doe for risqué photos of herself. Jane Doe told Mr. Cochran she was 15 years old and had a boyfriend. Mr. Cochran stated he was 19 years old. On October 17, 2017 he asked her to send nude photos on Snapchat, under the username “happycannon”. Mr. Cochran also sent Jane Doe several photos of his genitalia. Jane Doe soon regretted her actions, exited Snapchat, and blocked him.
At this point, Mr. Cochran began to threaten Jane Doe on Instagram, demanding more nude photos. She refused. Mr. Cochran threatened to spread her photos “all over” and share with her boyfriend. She replied that if he wanted to remain friends, he had to delete the photos. He warned her that he had an app that saved all the photos and again threatened to send them to her boyfriend. Mr. Cochran then proposed an arrangement where he would delete the photos if she agreed to continue to exchange nude photos occasionally. Jane Doe feigned interest in the arrangement while unsuccessfully trying to convince Mr. Cochran to delete the photos she had sent. Around this time, Jane Doe’s mother walked into a room and found her child crying. After being assured she wasn’t in trouble, Jane Doe told her mother what happened and described how she had been threatened by someone she met online. The mother, posing as Jane Doe’s father, confronted Mr. Cochran on Snapchat, stating the police had been contacted. The mother reported the incident to Fort Benning law enforcement, who turned the investigation over to the Federal Bureau of Investigation (FBI). Following an investigation, Mr. Cochran was located and taken into custody.
“This case paints a picture of what many parents fear most in today’s world—their children being lured by online predators into making terrible choices that threaten their safety and their future,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “I want to commend the victim’s mother, who was attentive to her child’s distress and immediately notified authorities. I also want to recognize the excellent investigative work of the FBI. These agents quickly and methodically tracked down a predator and stopped him from potentially harming other children. Protecting our children in today’s technological environment is a difficult task, but our Office will do our part and hold child predators accountable for their criminal actions.”
“The FBI will always make it a top priority to protect the most vulnerable in our society, our children,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is clear from this sentencing that Cochran’s actions will not be tolerated by our justice system, and hopefully, it will send a message to anyone with similar perverse intent.”
The case was investigated by the FBI and the Clatsop County (Oregon) Sheriff’s Office. Assistant U.S. Attorney Crawford Seals 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.
6 May 2019
York County Man Sentenced to 96 Months’ in Prison for Child Exploitation OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert T. Donelon, age 56, of York County, was sentenced on May 3, 2019, by Chief United States District Court Judge Christopher C. Conner to 96 months’ imprisonment followed by 10 years of supervised release for child exploitation offenses. Chief Judge Conner also ordered Donelon to pay $1,000 to each of the seven identifiable victims.
According to United States Attorney David J. Freed, Donelon pled guilty to the receipt and distribution of images of child pornography between December 2016 and January 2018, in York County.
The case was investigated by the West York Borough Police Department and the Federal Bureau of Investigation. Assistant United States Attorney James T. Clancy prosecuted the case.
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."
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Wheeling man admits to distributing methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Randy Lee Donahue, Jr., of Wheeling, West Virginia, has admitted to distributing methamphetamine, United States Attorney Bill Powell announced.
Donahue, age 37, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine within 1,000 Feet of a Protected Location.” Donahue admitted to distributing methamphetamine from an apartment located at 97 16th Street in Wheeling, within 1,000 feet of Wheeling Central Catholic High School in November 2018.
Donahue faces not less than one and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the West Virginia State Police; and the Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Washington, D.C. man sentenced for firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Roger Anthony Williams, of Washington, D.C., was sentenced today to 84 months incarceration for firearms charges, United States Attorney Bill Powell announced.
Williams, age 38, pled guilty to two counts of “Unlawful Possession of a Firearm” in January 2019. Williams, having previously been convicted of second-degree murder in Prince George’s County, Maryland, admitted to having a 9mm pistol in October 2017 in Berkeley County. He also admitted to having .45 caliber pistol and .45 caliber ammunition in September 2018 in the District of Columbia.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
United States Attorney Announces $17 Million Healthcare Fraud SettlementRead the Press Release
LARGEST HEALTHCARE FRAUD SETTLEMENT IN WEST VIRGINIA HISTORY
CHARLESTON, W.Va. – United States Attorney Mike Stuart, along with Special Agent in Charge Maureen R. Dixon, United States Department of Health and Human Services – Office of Inspector General (HHS-OIG), Acting Assistant Special Agent in Charge Justin Schoeman, Drug Enforcement Administration (DEA), Cabinet Secretary Bill J. Crouch, West Virginia Department of Health and Human Resources, and Director Mike Malone, West Virginia Medicaid Fraud Control Unit (MFCU), announced that his office has settled healthcare fraud claims against Acadia Healthcare Company, Inc. (“Acadia”). Pursuant to the settlement agreement, Acadia will pay $17 million to resolve allegations of a billing scheme that defrauded Medicaid of $8.5 million. The settlement represents the largest healthcare fraud settlement in the history of West Virginia and is twice the actual loss from the scheme. Of the $17 million settlement, nearly $2.2 million will be paid directly to the State of West Virginia.
“$17 million – the largest healthcare fraud settlement in the history of West Virginia,” said United States Attorney Mike Stuart. “$8.5 million in Medicaid fraud means $8.5 million in fraud to the taxpayers. Nearly 600,000 West Virginians rely on Medicaid for the payment of critical services. Medicaid fraud is not a victimless crime. I am proud of the work of my office and that of our partners to ensure the end of this multi-million dollar scheme. In this case, every dime in false billings was doubled for a total settlement that represents twice the harm caused. This is a strong message and a massive penalty. The message is clear – if you are cheating the system and we find you, you’ll not only pay for the damage done but far more. This is a message of deterrence to other would-be fraudsters.”
Acadia, acting through its subsidiary, CRC Health, L.L.C. (“CRC”), operates seven drug treatment centers in West Virginia. These treatment centers are located in Charleston, Huntington, Parkersburg, Beckley, Williamson, Clarksburg, and Wheeling. The West Virginia Centers provide outpatient drug treatment, including the administration of Methadone and the prescribing of Suboxone and Subutex. Each of Acadia’s West Virginia treatment centers is certified by the Centers for Medicare and Medicaid Services (“CMS”) to perform uncomplicated “waived” laboratory testing only. Waived laboratory tests are simple tests with a low risk for an incorrect result. “Non-waived” laboratory testing, in contrast, consists of moderate and high complexity testing. Laboratories that perform non-waived tests are required to have a significantly higher level of certification than the certifications held by the Acadia treatment centers.
From January 1, 2012 to July 31, 2018, Acadia’s treatment centers sent urine and blood samples to an outside laboratory, San Diego Reference Laboratory (the “San Diego Lab”) for all moderate and high complexity drug testing. The San Diego Lab performed the testing and invoiced Acadia’s treatment centers for the services, and did so at the request of the treatment centers. Acadia’s treatment centers paid the San Diego Lab directly. However, Acadia’s West Virginia treatment centers then billed West Virginia Medicaid for the urine and blood testing performed by the San Diego Lab, as though the testing had been performed by the treatment centers. In the claims for reimbursement submitted to Medicaid, Acadia’s treatment centers represented that they had performed the moderate and/or high complexity laboratory services. Medicaid, induced by the claims submitted by Acadia’s treatment centers, paid the treatment centers a substantially higher amount than the San Diego Lab charged to actually perform the testing. Medicaid regulations and policies specifically prohibited Acadia’s treatment centers from seeking reimbursement for moderate and complex urine and blood testing which they were not certified to perform, and did not, in fact, perform.
Medicaid paid Acadia’s treatment centers $8,500,000 as a result of these moderate and complex urine and blood testing claims, resulting in a loss of $2,181,100 to the State of West Virginia and $6,318,900 to the United States. The Medicaid program is primarily administered by the states, but jointly financed by federal and state funds – funds ultimately originating from taxpayers. As a result of the $17 million settlement, which represents twice the actual loss suffered by Medicaid, both the state and federal programs will be made whole.
As part of this settlement, CRC Health and Acadia Healthcare entered into a five-year corporate integrity agreement (CIA) with HHS-OIG. The CIA requires CRC and Acadia to maintain a compliance program, implement a risk assessment program, and hire an Independent Review Organization to review Medicaid claims.
Medicaid fraud cost states billions of dollars every year, diverting funds that could otherwise be used for legitimate health care services. In 2018, improper payments alone—which include things like payment for non-covered services or for services that were billed but not provided—totaled more than $40 billion nationally according to the Government Accountability Office.
“Fraudulent billing by these Acadia/CRC drug treatment clinics, as contended by the government, limits the State’s ability to provide desperately needed addiction treatment services,” said Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services Region including West Virginia. “We will continue working with the U.S. Attorney and other law enforcement partners to protect government health programs, taxpayers, and importantly people who depend on these funds for vitally needed treatment.”
“The West Virginia Department of Health and Human Resources, through its Medicaid Fraud Control Unit, continues to protect the integrity of healthcare programs and the citizens of West Virginia,” said Bill J. Crouch, Cabinet Secretary of the West Virginia Department of Health and Human Resources. “I am proud of DHHR’s Medicaid Fraud Control Unit under the leadership of Director Michael Malone and its work with the United States Attorney’s Office Southern District in combatting healthcare fraud and the opioid crisis and as a member of the innovative ARREST Task Force.”
“The Drug Enforcement Administration routinely works in partnership with other agencies to fight the opioid crisis,” said Justin Schoeman, Acting Assistant Special Agent in-Charge of DEA’s Charleston District Office, which covers West Virginia. “This settlement is just one example of the great results from our collaboration and hopefully it will have a positive effect on the people of West Virginia,” Schoeman added.
The investigation was conducted by HHS-OIG, DEA and MFCU, members of the United States Attorney’s Healthcare Fraud Abuse, Recovery and Response Team (ARREST), an innovative approach linking civil and criminal enforcement efforts together in a comprehensive attack on the opioid epidemic and healthcare fraud. Assistant United States Attorneys Alan McGonigal and Jennifer Mankins handled the matter on behalf of the United States. The settlement agreement can be found here: https://www.justice.gov/usao-sdwv/press-release/file/1160101/dl?inline=.
United States Attorney Mike Stuart announced the formation of ARREST in February 2019. This settlement is the first significant result since its inception. All health care related cases in the Southern District of West Virginia, whether they are the subject of criminal or civil investigation or enforcement, are directed through ARREST. Included within the purview of the team are the Opioid Fraud and Abuse Detection Unit, Affirmative Civil Enforcement Unit, Appalachian Regional Prescription Opioid Task Force, Medicare and Medicaid Fraud, and Asset Forfeiture efforts related to all healthcare matters.
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Tyler County man admits to firearms violationRead the Press Release
WHEELING, WEST VIRGINIA – Michael John Maisey, of Sistersville, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Maisey, age 49, pled guilty to one count of “Unlawful Possession of a Firearm.” Maisey, being prohibited from possessing a firearm, admitted to having a 9mm caliber pistol in July 2018 in Tyler County.
Maisey faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Martinsville Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Two Defendants Sentenced in Federal Court for Drug OffensesRead the Press Release
HUNTINGTON, W.Va. – Two defendants involved in drug offenses last year in Huntington were sentenced today in federal court, announced United States Attorney Mike Stuart. Marquan Charles Williams, 27, was sentenced to 67 months in federal prison after previously pleading guilty to possession with intent to distribute heroin. In a separate prosecution, Krista N. Ramey, 25, was sentenced to 24 months in federal prison after previously pleading guilty to distributing methamphetamine. Stuart commended the investigative efforts of the FBI Drug Task Force, the Cabell County Sheriff’s Department and the Huntington Police Department.
“If you are a drug dealer -- regardless of whether it’s fentanyl, heroin, methamphetamine, or any other illegal drug -- and we find you, we will prosecute you and put you behind bars for as long as possible,” said United States Attorney Mike Stuart.
In the Williams prosecution, officers with the Huntington Police Department were conducting surveillance at the Greyhound bus station in Huntington on May 23, 2018, when they observed Williams and another individual arrive on a bus from Detroit. Officers continued to conduct surveillance and observed Williams and the other individual enter a residence on West 7th Avenue in Huntington. The other individual was then seen leaving the residence and entering a vehicle which was stopped by officers. During the traffic stop, officers recovered a bag containing over 100 grams of fentanyl.
Officers subsequently executed a search warrant at the West 7th Avenue residence. When officers entered, they located Williams in the kitchen processing and bagging an additional quantity of fentanyl which Williams admitted that he intended to sell. Williams further admitted as part of his plea agreement that he directed the other individual to take the fentanyl seized during the traffic stop to a local motel to store it for later distribution.
In the Ramey prosecution, a confidential informant contacted Ramey on August 17, 2018, to arrange the purchase of methamphetamine. The informant then traveled to Ramey’s residence on South High Street in Huntington where Ramey distributed methamphetamine to the informant. As part of her plea, Ramey admitted that she also distributed methamphetamine to the informant on August 20, 2018, and that investigators seized four firearms during a search of her residence on August 23, 2018.
Assistant United States Attorney Joseph F. Adams handled the prosecutions. The sentences were imposed by United States District Judge Robert C. Chambers.
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Two Brooklyn Men Sentenced to Nine Years’ and 15 Years, Respectively, for Kidnapping, Extortion and Torture of VictimRead the Press Release
Earlier today, in federal court in Brooklyn, Michael Crumble was sentenced by United States District Judge Allyne R. Ross to nine years’ imprisonment for kidnapping conspiracy, kidnapping and committing physical violence in furtherance of an extortion relating to the December 2017 abduction, assault and extortion of a victim. On May 3, 2019, co-defendant Ramell Markus was sentenced to 15 years’ imprisonment for his role in the same crimes. The defendants were convicted by a federal jury in May 2018 following a one-week trial.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentences.
“The defendants were seeking cash and drugs when they brutally assaulted the victim, but what they ultimately received as a result of their vicious conduct were lengthy prison sentences,” stated United States Attorney Donoghue. “I commend our FBI and NYPD partners in the New York City Safe Streets Task Force for their outstanding investigative work in this case.”
“The primary mission of the NYPD and our law enforcement partners is to arrest, prosecute, and send away with a meaningful prison sentence anyone who commits violent crime, and instills fear in New Yorkers through their criminal actions,” stated NYPD Commissioner O’Neill. “I want to thank the Eastern District and the investigators from the FBI and NYPD who worked on this case. Their hard work helps ensure that those who engage in serious crimes like kidnapping, extortion and assault will face justice.”
On December 17, 2017, Crumble, Markus, and a co-conspirator kidnapped the victim outside his residence in Queens and forced him into a vehicle. Markus pistol-whipped the victim in a futile attempt to force him to give up narcotics believed to be in the victim’s home. The defendants and their co-conspirator then drove the victim to another location in Brooklyn, and during the next several hours tortured him – smashing a glass into his face and burning his arms with a hot iron – until the drugs and cash were given to them.The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Keith D. Edelman and Lindsay K. Gerdes are in charge of the prosecution.
The Defendants:
MICHAEL CRUMBLE
Age: 35
Residence: Brooklyn, New York,RAMELL MARKUS (also known as “Rah,” “Dollah” and “Smooth”)
Age: 36
Residence: Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-32 (ARR)
Trucker Working for Kansas Company Pleads Guilty to Stealing Load of MeatRead the Press Release
KANSAS CITY, KAN. – A California trucker working for a Kansas freight brokerage pleaded guilty Monday to stealing a load of meat valued at more than $160,000, U.S. Attorney Stephen McAllister said.
Gegham Avetisyan, 37, Valley Village, Calif., pleaded guilty to one count of wire fraud. Avetisyan contracted with a trucking freight brokerage business in Olathe to deliver a load of meat to three locations in California. He faxed documents to the company in which he used the name Robert Ivanov. He picked up the meat at a packing plant in Omaha, but never delivered it.
Sentencing is set for Aug. 12. He faces a sentence of up to 20 years in federal prison and a fine up to $250,000. McAllister commended the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.
Three Sentenced for Roles in Year-Long Mail Theft Scheme Involving over 500 VictimsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that three Anchorage residents have been sentenced for their roles in an Anchorage mail theft scheme, which involved obtaining checks from the mail, and then negotiating the stolen checks at different banks using stolen identities and bank accounts.
The last of three defendants in this case, Ronald Travis Hecker, 36, of Anchorage, was sentenced today by U.S. District Judge Sharon L. Gleason to serve 3.5 years in prison, followed by 3 years of supervised release. In November 2018, Ronald Hecker pleaded guilty to conspiracy, bank fraud, aggravated identity theft, and possession of stolen mail. As part of his sentence, Ronald Hecker was ordered to pay approximately $50,000 in restitution, joint and severally with his co-conspirators.
Ronald Hecker’s co-conspirators were each sentenced in April 2019 for their roles in the conspiracy, after previously pleading guilty. Amber Hecker, 35, and leader of the conspiracy, was sentenced to serve 3.5 years in prison for conspiracy, bank fraud, aggravated identify theft, and possession of stolen mail. Richard Hoglin, 36, was sentenced to serve 2 years and 3 months in prison for bank fraud and aggravated identify theft.
According to court documents, from April 2017 to April 2018, Ronald Hecker conspired with his wife, Amber Hecker, along with Richard Hoglin, to steal mail and pass stolen checks with stolen identities at Alaska USA Federal Credit Union. They stole checks from the mail including convenience checks from Bank of America, Capital One, and Citibank. The stolen identities used by Ronald Hecker and his co-conspirators to pass the stolen checks came from committing vehicle break-ins, as well as backpack and purse snatching from places like Chuck E. Cheese and daycare centers. They would then falsely alter the stolen checks to deposit them in the accounts associated with the stolen identities and then make cash withdrawals. Specifically, the stolen checks were falsely made out to make the payee a separate stolen identity that was used by the defendants to negotiate the stolen checks.
After her husband’s arrest, Amber Hecker recruited Hoglin to help steal mail and pass stolen checks with stolen identities at Alaska USA. Hoglin was involved in nine successful transactions in March 2018. He also assisted Amber Hecker in depositing $9,425 in stolen and forged checks and withdrawing $4,600 in cash.
In addition to the stolen identifications used in the approximately 88 fraudulent transactions during the course of the conspiracy, Ronald and Amber Hecker also had stolen identification information including social security cards, identification cards, and credit cards, of approximately 500 victims. This was the largest amount of victims impacted by a mail theft ring in Alaska. The investigation revealed that the total loss amount during the course of the conspiracy was $81,342.
Judge Gleason noted that these kinds of crimes are very serious because they “destroy the sense of community” and erode trust.
The Anchorage Police Department (APD) and the U.S. Postal Inspection Service (USPIS), along with the Anchorage Airport Police, conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Aunnie Steward.
Three Men Involved in Large-Scale Marijuana Trafficking Operation Plead GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that SCOTT BODNAR, also known as “Pep,” 40, of Ansonia, TERRELL GIVENS, 34, of Beacon Falls, and DONALD BURNS, 61, of Milford, have pleaded guilty to federal offenses related to their involvement in a large-scale marijuana trafficking conspiracy.
According to court documents and statements made in court, in 2016, the Federal Aviation Administration began investigating a Piper single-engine aircraft, owned by Burns, that was making regular flights between Stratford, Connecticut, and northern California via the southwest United States. On June 28, 2017, Burns flew the aircraft from northern California to Lubbock, Texas. The next day, Burns flew the aircraft from Texas to Arkansas, and then to West Virginia and Connecticut, where he landed in the evening at Sikorsky Airport in Stratford. After it landed, a law enforcement search of the plane revealed approximately 400 pounds of marijuana in vacuum-sealed packages. Investigators determined that the marijuana was intended for Bodnar, Givens and others to distribute in Connecticut.
The investigation revealed that, over a period of approximately two years, members of the conspiracy earned millions of dollars by trafficking nearly two tons of marijuana from California to Connecticut. Bodnar, Givens and others also laundered approximately $6 million to purchase marijuana in California, pay for their travel to and from California, and pay Burns to transport the marijuana.
On May 2, 2019, Bodnar pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 1,000 kilograms or more of marijuana, and one count of conspiracy to launder monetary instruments. Givens pleaded guilty to the same charges on May 3. Today, Burns pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 1,000 kilograms or more of marijuana. At sentencing, each defendant faces a maximum term of imprisonment of life.
In pleading guilty, the defendants agreed to the forfeiture of cash and various items, including Burns’ Piper aircraft, a 2012 Toyota Camry belonging to Bodnar, and a 2009 Jaguar XF and approximately $8,000 in jewelry belonging to Givens.
This matter is being investigated by the Drug Enforcement Administration, the Federal Aviation Administration’s Law Enforcement Assistance Program (LEAP), the Internal Revenue Service – Criminal Investigation Division, and the Stratford, Bridgeport and Derby Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Marc Silverman.
Texas Man Found Guilty of Conspiring to Support ISISRead the Press Release
A federal jury convicted a Dallas, Texas man on multiple terror charges, Assistant Attorney General for National Security John C. Demers and U.S. Attorney Erin Nealy Cox for the Northern District of Texas announced today.
Following a three-and-a-half day trial, Said Azzam Mohamad Rahim, a 42-year-old United States citizen, was convicted of one count of conspiracy to provide material support to a designated foreign terrorist organization (FTO), one count of attempting to provide material support to an FTO, and six counts of making false statements involving international terrorism to federal authorities.
“Said Azzam Mohamad Rahim operated online to spread ISIS’s poisonous message of hate and violence,” said Assistant Attorney General Demers. “Then he attempted to travel to support ISIS and he lied to the FBI when questioned about his activities. With the jury’s guilty verdicts, he is being held accountable for his crimes. I want to thank the prosecutors, agents, and analysts who are responsible for this result.”
“We will not allow radical terrorists motivated by dangerous ideologies to promote violence against innocent people,” said U.S. Attorney Nealy Cox. “The Justice Department is committed to combatting terror at home and abroad.”
According to evidence presented at trial, Mr. Rahim moderated a social media channel dedicated to recruiting fighters for the Islamic State of Iraq and al-Sham, or ISIS, a State Department designated terror group.
Mr. Rahim used Zello, a push-to-talk direct messaging application, to promote violence in ISIS’s name, prosecutors said.
Records showed he spent hours on Zello’s “State of the Islamic Caliphate” channel, where he touted acts of terror under various monikers:
“Kill and do not consult anyone,” he said in July 2016. “Kill by any means, smash his head on the wall, spit in his face, burn -- I mean anything, anything – poison, anything.”
“Brothers! What are you waiting for?,” he said a month later. “Mobilize and perform jihad for the cause of Allah…. Some of the brothers mobilized from this channel, they were amongst us. ”
He even praised several terrorist attacks after the fact.
“I was happy for this act,” Rahim said after a truck barreled into a crowd of people in Nice, France, killing 86. “Those dogs.”
Mr. Rahim was arrested on March 5, 2017 at the Dallas Fort Worth International Airport, where he was attempting to board a flight to Amman, Jordan. Asked by agents if he had ever supported ISIS, advocated travel for the purposes of jihad, promoted violence on ISIS’s behalf, or encouraged anyone to kill infidels at the urging of ISIS spokesman Abu Mohammed Al Adnani, Mr. Rahim said “no.”
Rahim now faces up to 20 years in federal prison for each material support count and eight years for each false statement count, for a total of up to 88 years imprisonment. The FBI, the U.S. Department of State – Diplomatic Security Services and the Joint Terrorism Task Force conducted the investigation. Assistant United States Attorney Errin Martin and Trial Attorney Taryn Meeks of the National Security Division’s Counterterrorism Section prosecuted the case. U.S. District Court Judge Jane J. Boyle presided over the trial.
Ten, including Pharmacy Owners, Pharmacist, and Nurse Practitioner, Charged in over $200 Million Prescription Drug FraudRead the Press Release
BIRMINGHAM – Ten defendants were charged in a 103-count indictment, including a nurse practitioner, and the owners, a pharmacist, managers, sales representatives, and billers, of a Haleyville, Ala.-based pharmacy, Northside Pharmacy doing business as Global Compounding Pharmacy. The indictment charges them with fraudulently billing health care insurers and prescription drug administrators for over $200 million in prescription drugs. In one listed instance, the defendants’ fraudulent conduct caused a prescription plan administrator to pay over $29,000 for one tube of a cream advertised as treating “general wounds.”
U.S. Attorney Jay E. Town, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson, Defense Criminal Investigative Service Special Agent in Charge John F. Khin, United States Postal Inspector in Charge, Houston Division Adrian Gonzalez, and Internal Revenue Service-Criminal Investigation Special Agent in Charge Thomas Holliman announced the charges.
The indictment filed in U.S. District Court charges the following individuals:
- John Jeremy Adams, 38, of Panama City Beach, Florida, an owner and president of Global, charged in 38 counts;
Adams was arrested on Wednesday and arraigned on Thursday in the Northern District of Florida.
- Ashley Adams, 36, of Santa Rosa Beach, Florida, director of HR for Global, charged in 10 counts;
- Jeffrey Black, 54, of Destin, Florida, an owner and vice president and COO of Global, charged in 18 counts;
- James A. Mays, III, 43, of Winfield, Alabama, a pharmacist at Global, charged in 20 counts;
- Jessica Linton, 36, of Clearwater, Florida, the manager of the billing team at Global, charged in 24 counts;
- Lisa Holmes, 40, of Troy, Alabama, a district manager supervising sales representatives at Global, charged in 12 counts;
- John Gladden, 49, of Tallahassee, Florida, a district manager supervising sales representatives at Global, charged in 9 counts;
- Christi Cunningham, aka Christi Mook, 34, of Crestview, Florida, a sales representative at Global, charged in 9 counts;
- Juan Rodriguez, 41, of Tampa, a biller at Global, charged in 6 counts; and
- Lori Dawn Edenfield, 45, of Marianna, Florida, a nurse practitioner, charged in 32 counts.
“Motivated by greed, the defendants executed a brazen health care fraud conspiracy and scheme that cost health insurance plans, including those that protect the elderly, disabled, military members and veterans, millions of dollars,” Town said. “Their scheme deprived health insurance plans of money that could have gone to assist patients with real medical needs. To date, this investigation has resulted in 28 people being charged. Would-be healthcare fraudsters should be on notice that our Office is dedicated to rooting out this conduct. We applaud the investigative agencies for their hard work.”
“The egregious corruption uncovered in this complex and wide-ranging fraud scheme wasted millions of dollars in American taxpayer funds, and furthermore, deprived U.S. military members and their families of legitimate prescription medications and other needed medical care,” said John F. Khin, Special Agent in Charge, DCIS-Southeast Field Office. “Through our aggressive investigative efforts with our partner agencies, DCIS helped stop this shameful abuse of one of DoD’s most critical programs.”
“Healthcare Fraud continues to impact the cost of healthcare in America and is amplified when trusted professionals abandon their ethical code in the name of greed. These unethical practices are damaging the lives of individuals and families throughout this country,” said Thomas J. Holloman, Special Agent in Charge for IRS Criminal Investigation. “IRS CI will continue to work closely with our law enforcement partners in an effort to prosecute those abusing our healthcare system for profit.”
“This audacious multimillion-dollar fraud scheme posed a significant threat to the integrity of government healthcare programs at the expense of taxpayers,” said Special Agent in Charge Derrick L. Jackson of the HHS Office of Inspector General. “Working closely with our law enforcement partners, our agency will continue to protect Medicare and Medicaid from such costly scams.”
“In addition to undermining public health and safety, health care fraud cheats Americans out of more than eighty billion dollars a year in higher premiums and increased out-of-pocket expenses,” said Adrian Gonzales, Postal Inspector in Charge, Houston Division. “The United States Postal Inspection Service is committed to investigations with our law enforcement partners whenever health care fraudsters try to involve the U.S. Mail in their nefarious schemes, as in this case against Northside Pharmacy of Haleyville, Alabama, doing business as Global Compounding Pharmacy.”
“Pursuing those who perpetrate fraud against VA programs and operations is a priority for VA OIG,” said Veteran Affairs Office of Inspector General Criminal Investigations Division Special Agent in Charge David Spilker. “We will continue to work with our law enforcement partners to ensure the integrity of VA programs designed to help our nation’s veterans and their families.”
According to the indictment, Global, which described itself as “one of the top three largest compounding pharmacies in the United States,” primarily shipped compounded and other drugs from its Haleyville facility, but did most of its prescription processing, billing and customer service at its “call center” in Clearwater, Fla. The company hired sales representatives who were located in various states and were responsible for generating prescriptions from physicians and other prescribers. The company also worked with affiliated pharmacies.
The indictment describes a multi-faceted health care fraud and mail fraud conspiracy and scheme in which the defendants billed for medically unnecessary drugs. Aspects of the scheme included paying prescribers to issue prescriptions; directing employees to get medically unnecessary drugs for themselves, family members, and friends, to be filled and billed by Global and other related pharmacies; altering prescriptions to add non-prescribed drugs including controlled substances such as Tramadol and Ketamine; automatically refilling prescriptions—often as many as 12 times—regardless of patient need; routinely waiving and discounting co-pays to induce patients to obtain and retain medically unnecessary drugs; and billing for drugs without patients’ knowledge and hiding that conduct from patients by mailing the drugs to J. Adams’ home. According to the indictment, when prescription drug administrators attempted to police this fraudulent conduct, the defendants evaded and obstructed those efforts, including by providing false information in response to audits and diverting their billing through affiliated pharmacies. In executing the scheme, the defendants billed health insurance plans and their prescription plan administrators over $200 million and were paid over $50 million.
The indictment states that the defendants targeted multiple health insurance plans, including Global’s, Blue Cross Blue Shield of Alabama, and plans providing health insurance to the elderly, disabled, members of the military, and veterans—Medicare, TRICARE, and CHAMPVA, among others. In addition, the defendants targeted the health insurance plans of Medtronic, a medical device company, and Novartis Pharmaceuticals Corp., pharmaceutical company, both known by some of the defendants to have high-reimbursing health insurance. According to the indictment, Adams and Black would hire individuals known to be on Medtronic and Novartis’s health insurance plans, and direct them to get prescriptions for medically unnecessary drugs for themselves, family members, and friends, and then pay them a commission for these prescriptions.
Some of the conduct described in the indictment includes billing for female sex creams issued to male patients, billing for drugs issued to children that Global stated were contraindicated for use by children, and billing for drugs that patients did not need and therefore simply discarded in the trash.
The indictment also charges the defendants with aggravated identity theft, charges J. Adams, Black, and Edenfield with participating in a kickback conspiracy, and charges J. Adams, Black, and Mays with multiple counts of spending the proceeds of health care fraud and mail fraud. Purchases included for private plane travel and expensive watches.
The charges stem from a larger investigation that has to date resulted in 18 additional individuals being charged and signing plea agreements. Those individuals include Global Vice President of Sales Phillip Marks, Operations Manager Jeffrey South, District Manager Angie Nelson, National Field Trainer and sales representative Bridget McCune; sales representatives Bonita Amonett, Roddrick Boykin, Joshlyn Bowen, Erin Brown, Vanessa Case, Peter Eodice II, Jody Hobbs, Robin Lowry, Kelley Norris and Dawn Whitten; billers Fermin Alfonso, Stacey Cardozo, and Christopher Nunez; and a nurse practitioner, Brandy Lunsford.
The maximum penalty for healthcare and mail fraud conspiracy is 20 years in prison and a $250,000 fine. The maximum penalty for health care fraud is 10 years in prison and a $250,000 fine. The maximum penalty for mail fraud is 20 years and a $250,000 fine. The penalty for aggravated identity theft is a mandatory two years, to run consecutive to other counts. The maximum penalty for the kickback conspiracy charge is 5 years in prison and a $250,000 fine. The maximum penalty for spending proceeds of health care fraud and mail fraud is 10 years in prison and a $250,000 fine.
The FBI, HHS-OIG, DCIS, USPIS, IRS-CI, and a United States Attorney’s Office investigator investigated the cases, which Assistant U.S. Attorneys Chinelo Dike-Minor and Don Long are prosecuting. The Veteran Affairs Office of Inspector General Criminal Investigations Division provided assistance in the investigation.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Tax Preparer Admits Preparing False Federal Income Tax Returns for OthersRead the Press Release
PITTSBURGH, PA – A resident of Westmoreland County, Pennsylvania, has pleaded guilty in federal court on charges of aiding or assisting in the preparation or filing of false federal income tax returns, United States Attorney Scott W. Brady announced today.
Daniel K. Hamilton of Arnold, PA, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was informed that between 2010 and 2016, Hamilton, a tax preparer for Cititax Refund Co. in Pittsburgh, prepared federal income tax returns for other persons that included false Schedule C information, and which requested more than $2 million in false Earned Income Tax Credit refunds for the taxpayer.
Judge Fischer scheduled the sentencing for October 2, 2019 at 9 a.m. The law provides for a total sentence of three years imprisonment for each count, a fine of $100,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigations conducted the investigation that lead to the prosecution of Daniel K. Hamilton.
Super Bowl, All-Star and NCAA Championship Counterfeit Ticket Producer Sentenced to 4+ Years in PrisonRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Eugene Smith, 45, of Lithonia, GA was sentenced today to 51 months imprisonment after being convicted of conspiracy to commit wire fraud, wire fraud, conspiracy to traffic in counterfeit goods, and trafficking in counterfeit goods, arising from Smith’s leadership role in the production and sale of counterfeit tickets to sporting events, including the National Football League’s Super Bowl LI (51) in Houston (between the Patriots and the Falcons) and Super Bowl LII (52) in Minneapolis (between the Eagles and the Patriots), a National Basketball Association All-Star game, National Collegiate Athletic Association Championship football and basketball games, and other sporting events and concerts. The counterfeit tickets bore the authentic trademarks of the respective organization or agency that was registered with the United States Patent and Trademark Office. Smith sold the counterfeit tickets at the various venues and also distributed the counterfeit tickets to other sellers nationwide for resale to victims.
Smith targeted events and victims based on profitability – the bigger the event, the bigger the payoff. The scheme involved several steps and multiple players: after determining which events would draw the most profit, Smith provided a real ticket to the event to his printer for use in the production of multiple tickets for the event. Smith would then travel to venues to sell the counterfeit tickets or he provided the counterfeit tickets to other sellers to resell to unwitting fans. This scheme involved sophisticated printing that mimicked the authentic tickets’ markings and hologram.
At Smith’s sentencing hearing, Eric Ferguson, who was also charged with the same offenses, testified that he was recruited by Smith to produce the counterfeit tickets for the sporting events and concerts. The government presented evidence that the face value of the counterfeit tickets printed by Ferguson was at least $170,000, but the government estimated that the actual resale value of the tickets, particularly the Super Bowl tickets, far exceeded their face value.
“This case isn’t just about taking advantage of sports fans’ willingness to spend their hard-earned dollars to enjoy a game; this is about ensuring that consumers of all types can trust that when they spend their money, they are getting the authentic product for which they paid,” said U.S. Attorney McSwain. “Smith is nothing more than a con-artist and thief, and I’m grateful that the judge saw it that way and gave him a sentence that ensures justice for his victims.”
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Joan E. Burnes and Anita Eve.
Suburban Chicago Man Sentenced to 16 Years in Federal Prison for Attempting to Detonate Explosive Device in Downtown ChicagoRead the Press Release
CHICAGO — A suburban Chicago man was sentenced today to 16 years in federal prison for attempting to detonate an explosive device at a bar in downtown Chicago.
ADEL DAOUD, 25, of Hillside, Ill., attempted to detonate what he thought was a 1,000-pound car bomb at a popular bar in the downtown Loop neighborhood of Chicago on Sept. 14, 2012. Prior to the evening of the planned attack, Daoud had been preaching for violent jihad and expressed an interest in working with operational terrorists. He researched and created a list of potential Chicago-area targets, which included movie theaters, bars and nightclubs, a suburban mall, and military recruiting centers. Unbeknownst to Daoud, the explosive device at the Loop bar was inert and had been constructed by bomb technicians from the Federal Bureau of Investigation. Daoud was arrested on the scene after twice attempting to detonate the purported bomb. He has been in federal custody since then.
U.S. District Judge Sharon Johnson Coleman imposed the sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John C. Demers, Assistant Attorney General for National Security; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The government is represented by Assistant U.S. Attorneys Barry Jonas and Tiffany Ardam of the Northern District of Illinois, with assistance by Trial Attorney Bridget Behling of the National Security Division’s Counterterrorism Section.
“Protecting our national security is the Department of Justice’s top priority,” said U.S. Attorney Lausch. “We will continue to work with our law enforcement partners to prevent, disrupt, and defeat terrorist operations before they occur.”
“The conviction and sentencing of Adel Daoud are evidence of the FBI’s commitment to working vigilantly with our local, state, and federal law enforcement partners to prevent violent attacks before they occur,” said SAC Sallet. “This investigation would not have been possible without the joint efforts of our law enforcement community. As long as terrorists threaten the security of our nation, we will unite to shield our citizens from harm. Our message to terrorists is clear: We will find you, we will arrest you, and we will bring you to justice.”
The attempted bombing was one of three cases against Daoud to be resolved today as part of the sentencing order. While he was jailed for attempting to detonate the bomb, Daoud in late 2012 solicited his cellmate to have a violent gang member murder an FBI agent who had posed undercover as a terrorist during the investigation. The murder-for-hire plot was not carried out, and the FBI agent was not injured. The third case against Daoud involved a violent assault on a fellow jail inmate in 2015. While incarcerated at the Metropolitan Correctional Center in Chicago, Daoud attacked an inmate who had drawn what Daoud felt was an insulting picture of the prophet Mohammad. The inmate suffered lacerations on his head and a bite mark on an arm.
Staten Island Man Arrested for Distributing Heroin and FentanylRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Nalerton Charles, also known as “Lite,” with conspiring to distribute and distributing more than 40 grams of fentanyl and heroin in Staten Island, New York. Charles was arrested earlier today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Peggy Kuo.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, Charles sold heroin laced with fentanyl, and on occasion fentanyl alone, without regard for the potentially deadly consequences of the narcotics to users,” stated United States Attorney Donoghue. “This Office will continue to work tirelessly with our law enforcement partners to save lives by arresting and prosecuting those who contribute to the opioid epidemic by pushing these dangerous drugs.”
“This arrest underscores the dangers posed by opioid traffickers,” said DEA Special Agent-in-Charge Donovan. “Fentanyl is the leading killer among street drugs because of its fatal potency of 2-3 milligrams. Every time you use, you put your life in the hands of a drug dealer. Law enforcement’s tireless effort to safeguard our communities from drug traffickers will continue.”
“Anyone who deals in illegal narcotics, including opioids, should understand that the nation’s best investigators will stop at nothing to fight crime, target traffickers, and keep safe everyone we serve,” stated NYPD Commissioner O’Neill. “I would like to thank the U.S. Attorney for the Eastern District, the DEA, and the investigators involved in this investigation for their efforts which resulted in this arrest.”
As alleged in the complaint, between July 2018 and April 2019, Charles sold at least 40 grams of fentanyl and heroin laced with fentanyl. On September 9, 2018, a 43-year-old individual (Victim-1) died of a drug-related overdose at his residence on Staten Island. Drug packaging found near Victim-1’s body was consistent with the packaging that Charles used for the narcotics he sold. Law enforcement officers obtained video from surveillance cameras outside Victim-1’s residence recorded shortly before his death. The video showed Victim-1 and Charles together. On April 23, 2019, a 29-year-old individual (Victim-2) died of a drug-related overdose at his residence on Staten Island. A search of Victim-2’s phone revealed text messages between Charles and Victim-2. On the morning of Victim-2’s death, he texted Charles, “Is it mix w fentonal…Just wanna know to be careful”. Shortly before Victim-2’s body was discovered, Charles texted Victim-2: “U good”.
Additionally, Charles sold pure fentanyl to a confidential source and an undercover NYPD officer in doses that could have been lethal if consumed.
According to the Centers for Disease Control and Prevention (CDC) and the Department of Justice, drug overdoses have become the leading cause of death for Americans under the age of 50. The increase in overdose deaths has been driven in large part by fentanyl – a drug that has been described as 50 to 100 times more potent than morphine. In New York, from 2014 to 2015, fentanyl overdose deaths rose 135 percent, while heroin overdose deaths rose 28 percent. According to the CDC, in 2016 synthetic opioid overdose deaths — which include fentanyl — more than doubled from 9,580 in 2015 to 19,413.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a mandatory minimum sentence of five years’ imprisonment and up to 40 years’ imprisonment.
The government’s case is being prosecuted by Department of Justice Trial Attorney Miriam L. Glaser Dauermann of the Criminal Division’s Fraud Section under the supervision of the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section.
The Defendant:
NALERTON CHARLES (also known as “Lite”)
Age: 38
Staten Island, New YorkE.D.N.Y. Docket No. 19-MJ-418
Stamford Man Pleads Guilty to Role in Trafficking Fake Oxycodone Pills Containing Fentanyl AnaloguesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DAVID REICHARD, 30, of Stamford, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to a charge stemming from his role in a conspiracy to manufacture and distribute counterfeit oxycodone pills containing fentanyl analogues.
According to court documents and statements made in court, Reichard’s associates purchased fentanyl analogues from suppliers in China. Reichard and his associates then pressed the drug into counterfeit oxycodone pills and mailed the pills to customers who had purchased them on dark web markets.
On April 3, 2018, a court-authorized search of a Stamford residence revealed numerous pills containing approximately 330 grams of fentanyl and acetyl fentanyl, approximately 40 grams of fentanyl analogues in powder form, three pill presses, instructions on how to prepare the fentanyl analogue Carfentanil, a hazardous material suit, a gas/respirator-type mask, and numerous U.S. Postal mail envelopes.
Reichard was arrested on a federal criminal complaint on April 13, 2018. Today, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, fentanyl analogue, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. Judge Underhill scheduled sentencing for July 29, 2019.
This investigation is being conducted by the U.S. Postal Inspection Service, Drug Enforcement Administration, Connecticut State Police and Stamford Police Department, with the assistance of the Albanian State Police. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
St. Louis Drug Distributor Sentenced for Dealing Cocaine and to Forfeit over $1.1 Million DollarsRead the Press Release
St. Louis, MO – Quentarus Smith, 38, of St. Louis, MO, was sentenced to 7 years’ imprisonment for his participation in a conspiracy to possess with the intent to distribute cocaine, a fine of $25,000, and he was ordered to forfeit over $1.1 million in the sale of drug proceeds. Smith appeared before U.S. District Judge Catherine D. Perry this afternoon.
Smith previously admitted to his participation in a drug trafficking organization engaged in the multi-kilogram shipment of cocaine and marijuana from Los Angeles, California, and Florida, to St. Louis for distribution. Smith was ultimately apprehended by law enforcement returning to St. Louis in possession of over $900,000 in U.S. currency, which investigators have traced as proceeds of his participation in the conspiracy to distribute cocaine.
The Drug Enforcement Administration – St. Louis Office investigated this case. Assistant U.S. Attorneys Erin Granger and Lisa Yemm handled the case for the U.S. Attorney’s Office.
Sioux Falls Man Found Not Guilty of Failure to RegisterRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man was acquitted of Failure to Register as a Sex Offender as a result of a federal jury trial in Pierre, South Dakota, beginning mid-morning on May 2, 2019, and concluding in the afternoon of May 2, 2019.
Phillip Running, age 32, was indicted by a federal grand jury on February 13, 2019.
The charge alleged that between December 14, 2018, and December 20, 2018, Running, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under law, failed to register and update his registration.
The investigation was conducted by the U.S. Marshals Service. The U.S. Attorney’s Office prosecuted the case.
San Fernando Valley Man Convicted in Scheme that Used Stolen Identities to Obtain over $3 Million in Loans, Cars and CashRead the Press Release
LOS ANGELES – A jury has convicted a Northridge man of 51 counts of fraud, money laundering, identity theft and other federal offenses in relation to a scheme that generated at least $3 million.
Turhan Lemont Armstrong, 49, was found guilty Friday afternoon at the conclusion of a two-week trial. Armstrong was convicted of all 51 counts in a grand jury indictment, which included charges of conspiracy to commit financial institution fraud, financial institution fraud, making false statements to financial institutions, conspiracy to commit money laundering, money laundering, conspiracy to commit access device (credit card) fraud, access device fraud, interstate transportation of stolen vehicles, and aggravated identity theft.
The evidence presented at trial showed that Armstrong used stolen identities and Social Security numbers to obtain credit cards, open bank accounts, set up shell companies, apply for loans, and purchase homes and cars. Armstrong and his co-defendants – two of whom previously pleaded guilty – favored using the social security numbers of children, who would be less likely to monitor their credit.
In addition to using fraudulently obtained credit cards to purchase goods, members of the scheme were able to use point-of-sale terminals maintained by “collusive merchants,” which allowed them to make what were essentially cash withdrawals.
Armstrong and his co-conspirators also used the fraudulent information to apply for loans from financial institutions across the country. In some instances, Armstrong obtained loans for cars that had already been exported out of the United States.
During the trial, the jury heard evidence that Armstrong did not report any income to the Internal Revenue Service for the years 2009 through 2017 – yet he maintained residences in Georgia, Florida and the Sherwood Forest neighborhood of Northridge. When authorities went to Armstrong’s apartment in Atlanta in late 2017 to arrest him pursuant to the indictment, he evaded law enforcement, only to be arrested three days later leaving his house in Fort Lauderdale. Investigators executed search warrants at all three of Armstrong’s homes, as well as two storage units in the Los Angeles area, where they discovered false identity documents, hundreds of credit cards in various names, and lists of social security numbers belonging to other people.
Armstrong is scheduled to be sentenced by United States District Judge R. Gary Klausner on August 5. As a result of the guilty verdicts, Armstrong faces a statutory maximum sentence of over 1,000 years in federal prison.
The investigation of Armstrong was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Substantial assistance was provided by the Social Security Administration’s Office of Inspector General, the Miami-Dade Police Department, and the North Miami Beach Police Department.
The matter is being prosecuted by Assistant United States Attorneys Alexander B. Schwab of the Major Frauds Section and Allison L. Westfahl Kong of the General Crimes Section.
Saluda Woman Pleads Guilty to Filing False Tax ReturnsRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Brenda Rodgers, age 57, of Saluda, pleaded guilty to Filing a False Tax Return. United States District Court Judge Timothy Cain, of Anderson, accepted the plea and will sentence Rodgers after receiving and reviewing a presentence report prepared by the United States Probation Office.
Evidence presented at the hearing established that from 2012 through 2016, Rodgers was an employee of a property and casualty insurance agency located in Columbia. Rodgers embezzled by writing checks from a particular client’s account to herself and forging the name of her supervisor. During the tax years 2012 through 2016, Rodgers wrote herself 325 checks totaling over $337,000. Rodgers concealed her activity by making false entries in the accounting records and on check stubs. She also removed pages from the bank statements that contained photocopies of the checks transferring funds into her bank account. By creating false entries and removing bank records, Rodgers avoided reporting taxable income associated with her embezzlement. As a result, she avoided tax payments totaling $78,892 for the years 2012 through 2016. As for Count 4 of the Indictment, to which she pleaded guilty, the additional tax she owed that year was at least $27,222.
Rodgers confessed to deputies of the Richland County Sheriff’s Office, explaining that she used the money to pay bills, make car payments, and pay off her mortgage.
The maximum penalty Rodgers faces is three years in federal prison and a fine of $100,000.
The United States Internal Revenue Service and the Richland County Sheriff’s Office investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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Puerto Rican Coconspirator in Transnational Drug Organization Sentenced to 10 Years in Prison for Attempted Possession of CocaineRead the Press Release
St. Croix, USVI – District Court Judge Anne E. Thompson, on May 6, 2019, sentenced Jean Cruz-Albert, 28, of Puerto Rico, to a mandatory 10 years in prison for attempted possession of cocaine with intent to distribute, United States Attorney Gretchen C.F. Shappert announced. Judge Thompson also sentenced Cruz-Albert to four years of supervised release and ordered him to pay a fine of $500.00 and a special assessment of $100.00.
Cruz-Albert pled guilty to the attempted possession of cocaine on February 26, 2017. Court records reveal that between November 9, 2015 and November 12, 2015, Cruz-Albert and others in a multi-drug trafficking organization made three boat trips from St. Croix in attempt to effect a mid-sea retrieval of cocaine. They conspired to bring drugs to St. Croix and transfer the drugs to Puerto Rico.
On December 13th and 14th of 2014, Cruz-Albert and others successfully effected the mid-sea retrieval of 30 kilograms of cocaine. On or about May 14, 2015, Cruz-Albert and others made another attempt to effect the mid-sea retrieval of drugs by boat. Finally, on November 13, 2015, members of the conspiracy successfully completed another mid-sea retrieval of the cocaine and were subsequently apprehended at Knight’s Bay in St. Croix. Law enforcement agents seized 87 kilograms of cocaine and the conspirators were apprehended.
The case was investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
Providence Man Sentenced for Trafficking CocaineRead the Press Release
PROVIDENCE, RI – A Providence man who admitted to importing cocaine from Puerto Rico into Rhode Island through the U.S. Postal Service and, in return, shipping back large sums of cash to a cocaine distributor in Puerto Rico was sentenced today to one year and one day in federal prison.
Appearing before U.S. District Court Chief Judge William E. Smith, Eliot Figueroa-Rosario, 45, was also ordered to serve 3 years supervised release upon completion of his term of incarceration and to forfeit $32,500 seized by law enforcement. Figueroa-Rosario pleaded guilty on December 7, 2018, to attempted possession with intent to distribute 500 grams or more of cocaine.
Figueroa-Rosario’s sentence is announced by United States Attorney Aaron L. Weisman, Colonel James M. Manni, Superintendent of the Rhode Island State Police, and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.
According to court documents, in May 2017 and May 2018, Figueroa-Rosario was captured on video surveillance shipping parcels to Puerto Rico from the U.S. Postal Service Providence Processing and Distribution Center (P&DC). A court-authorized search of the packages found them to contain $16,000 and $26,000 respectively. The cash was seized by law enforcement.
On June 15, 2018, a Priority Mail package mailed three days earlier from Puerto Rico and addressed to Figueroa-Rosario’s Providence residence was intercepted from the mail stream at the P&DC. The package was examined by a Rhode Island State Police K-9, which detected the presence of a narcotic odor. A court-authorized inspection of the contents of the package revealed 1160 grams of cocaine.
Several days later a Postal Service Inspection undercover agent delivered the package to Figueroa-Rosario’s residence. Figueroa-Rosario accepted the package and was arrested. A court-authorized search of the residence by U.S. Postal Inspectors and members of the Rhode Island State Police High Intensity Drug Trafficking Area Task Force resulted in the seizure of, among other items, evidence of packages shipped from Puerto Rico to Figueroa-Rosario’s residence and $6,500 in cash found hidden in a floor vent.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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Proclamations Missing and Murdered American Indians and Alaska Natives Awareness Day, 2019Read the Press Release
On Missing and Murdered American Indians and Alaska Natives Awareness Day, we draw attention to the horrible acts of violence committed against American Indian and Alaska Native people, particularly women and children. Too many American Indians and Alaska Natives are the victims of abuse, sexual exploitation, or murder — or are missing from their communities. Some of those missing may be victims of human trafficking. We must work together as a Nation to correct these injustices and ensure the safety of all Americans, particularly our most vulnerable populations.
American Indian and Alaska Native people face alarming levels of violence. Data from the National Institute of Justice and the Centers for Disease Control and Prevention indicate that more than 1.5 million American Indian and Alaska Native women have experienced violence, including sexual violence, in their lifetimes. American Indian and Alaska Native children attempt and commit suicide at rates far higher than those in any other demographic in our Nation, and often endure disproportionately high rates of endemic drug abuse, violence, and crime.
Ending the violence that disproportionately affects American Indian and Alaska Native communities is imperative. Under my Administration, Federal agencies are working more comprehensively and more collaboratively to address violent crime in Indian country, to recover the American Indian and Alaska Native women and children who have gone missing, and to find justice for those who have been murdered. As a result of these ongoing efforts, we are improving public safety, we are expanding funding and training opportunities for law enforcement in Indian country, and we are better equipping them with tools like access to criminal databases. We have also established improved protocols based on our government-to-government relationships with the tribes, and have become more transparent and accountable in our efforts.
Currently, every United States Attorney’s Office with Indian country jurisdiction has developed sexual assault response and multidisciplinary teams to combat sexual assault and abuse of American Indian and Alaska Native women and children. In addition, the Attorney General has developed a working group dedicated to addressing violent crime in Indian country. This working group has made the development of law enforcement strategies for Missing and Murdered Indigenous People (MMIP) a priority, improving human trafficking training and creating law enforcement initiatives for United States Attorneys.
To help address the significant challenges in collecting data regarding missing and murdered American Indian and Alaska Native people, the Department of the Interior’s Bureau of Indian Affairs (BIA) and the Department of Justice (DOJ) partnered together to capture tribal data through new data fields in the National Missing and Unidentified Persons System. DOJ has also expanded the Tribal Access Program (TAP) and Amber Alert in Indian country to make law enforcement more aware of missing persons and to enhance their ability to be responsive to missing persons reports and Sexual Offender Registration and Notification Act (SORNA) registrants in the area. TAP also enables tribal law enforcement to have access to national law enforcement databases and to immediately and directly enter missing persons reports into them. In addition, BIA’s Tribal Justice Support Directorate funds the training of tribal attorneys in prosecuting domestic violence and partner abuse crimes as part of implementing the Violence Against Women Act.
In Fiscal Years 2018 and 2019, DOJ allocated historic amounts of funding to combat violent crime in Indian country, including to the MMIP efforts of the Office on Violence Against Women (OVW). DOJ set aside close to $300 million from the Crime Victim Fund over two years to assist victims of crime in Indian country. It also expanded the Tribal Special Assistant United States Attorney program, which is aimed at reducing violent crime, including violence against women, in Indian country and building important partnerships between Federal and tribal agencies. In addition, DOJ funds the National Indian Country Training Initiative (NICTI), which continues to provide training at the National Advocacy Center and in the field for Federal, State, and tribal criminal justice and social service professionals.
My Administration will continue working to root out injustice and protect each and every person in America. On Missing and Murdered American Indians and Alaska Natives Awareness Day, we pause to raise awareness of unacceptable acts of violence that profoundly harm American Indian and Alaska Native communities. As a Nation, we honor the lives of all missing and murdered American Indians and Alaska Natives, and we reaffirm our commitment to ensuring that violence against these vulnerable Americans shall not be overlooked or tolerated.
NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim May 5, 2019, as Missing and Murdered American Indians and Alaska Natives Awareness Day. I call upon Americans and all Federal, State, tribal, and local governments to increase awareness of the crisis of missing and murdered American Indians and Alaska Natives through appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this third day of May, in the year of our Lord two thousand nineteen, and of the Independence of the United States of America the two hundred and forty-third.
DONALD J. TRUMP
The White House
Portland Man Sentenced to Federal Prison for Attempting to Bribe Ice Deportation OfficerRead the Press Release
PORTLAND, Ore.—Antonio Oswaldo Burgos, 48, of Portland, was sentenced today to four months in federal prison and three years’ supervised release for attempting to bribe a U.S. Immigration and Customs Enforcement (ICE) deportation officer.
According to court documents, on May 24, 2018, Burgos followed an ICE deportation officer in his vehicle from the ICE office in Portland until the officer stopped in a parking lot in Vancouver, Washington. The defendant offered the officer money to deport his wife who he had met in El Salvador and was in the process of divorcing. The officer declined Burgos’ offer and reported the event to the ICE Office of Professional Responsibility (OPR).
On May 31, 2018, the officer made a recorded call to Burgos with the assistance of an OPR investigation team. Burgos offered to the pay the officer $3,000 to remove his wife from the U.S. On June 5, 2018, the officer and OPR team made a second recorded call on which Burgos again offered to pay the officer for his wife’s removal. Burgos and the officer proceeded to discuss logistics for an in-person meeting.
On June 6, 2018, Burgos met the officer in a pre-determined location and offered to pay $4,000 for the removal of his wife and his wife’s minor child from a previous relationship.
On November 20, 2018, Burgos pleaded guilty to one count of bribery of a public official.
This case was jointly investigated by ICE OPR and Homeland Security Investigations. It was prosecuted by Rachel K. Sowray and Claire M. Fay, Assistant U.S. Attorneys for the District of Oregon.
Owner of Canton company that manufactures American flags sentenced to two years in prison for failing to pay $162,000 in taxesRead the Press Release
The owner of a Canton company that manufactures American flags was sentenced to two years in prison for failing to pay more than $162,000 in payroll taxes.
Richard Spencer, 52, was ordered to pay $197,040 in restitution. He previously pleaded guilty to failure to account for, collect and pay over employment taxes.
U.S. Attorney Justin Herdman said: “This defendant did not paying over taxes he collected from his employees, and intentionally misclassified others to avoid taxes. This defendant benefitted from being able to say that his flags were made in America, but he failed to meet his obligations to his employees and the American taxpayer.”
“Richard Spencer did not have any problems with earning income from manufacturing the American flag, but he did have problems with paying employment taxes to the IRS that he withheld from his employees,” said William Cheung, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “What is very disturbing about this case is that an IRS audit disclosed that Richard Spencer improperly treated employees as contractors and even after learning the results of the audit he continued to misclassify his employees and continued to fail to pay the employment taxes.”
Spencer controls RS Sewing, which manufactures American flags. Spencer oversaw production, source materials, paperwork and the company’s financial operations, according to court documents.
Spencer, beginning around 2008, reclassified some of his workers from employees to independent contractors. Following an audit in 2011, Spencer was informed he improperly classified the workers as independent contractors, and a penalty was assessed against Spencer. He continued to misclassify some employees and failed to pay employment taxes, according to court documents.
Spencer classified some workers as independent contractors and others as employees, although all RS Sewing workers were required to clock in and out, were paid wages by the hour, were provided materials to make the flags by RS Sewing and were otherwise treated the same by managers, according to court documents.
Spencer from 2012 through 2015, Spencer failed to withhold taxes from workers he knowingly and willfully misclassified as independent contractors. For workers classified as W-2 employees, Spencer withheld federal income, Social Security and Medicare taxes from employees but never paid the money to the IRS, according to court documents.
Overall, he failed to collect, account for and pay over approximately $162,728 of federal employment taxes, according to the indictment.
This case was investigated by the Internal Revenue Service – Criminal Investigations. It was being prosecuted by Assistant U.S. Attorneys Carmen Henderson and Robert Kern.