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30 April 2019
Laurel Man Sentenced to 30 Years in Prison for Drug ConspiracyRead the Press Release
Gulfport, Miss. – Victor Coleman a/k/a "Stone," 33, of Laurel, was sentenced today by U.S. District Judge Sul Ozerden to 360 months in federal prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Homeland Security Investigations in New Orleans. Coleman was also ordered to pay a $10,000 fine.
On January 23, 2018, a cooperating source placed a recorded phone call to Coleman inquiring about the purchase of methamphetamine. During the phone call, Coleman stated that he was currently out of town but would have four ounces of methamphetamine delivered to the source. Coleman later told the source to meet Jack Hales at the fast food restaurant on Pass Road in Harrison County to get the drugs. He also provided the source with Hales’ phone number so they could have further conversations about the deal, if necessary. Later that day, agents arrested Hales while he was attempting to make the meth delivery on behalf of Coleman. In total, the source purchased approximately four pounds of methamphetamine from Coleman over the course of a few months.
Hales previously pled guilty to his role in the conspiracy. He was sentenced to 157 months in federal prison, followed by five years supervised release, and ordered to pay a $5,000 fine.
The case was investigated by Homeland Security Investigations in Gulfport, and it was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Largo Man Sentenced for Transporting Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Kirk David Blank (50, Largo) to nine years in federal prison for transporting child pornography. The court also ordered Blank to pay $10,000 in restitution to the victims of his offense and to forfeit the electronic devices that he had used in the commission of the offense.
Blank had pleaded guilty on December 13, 2018.
According to court documents, Blank was a member of an online chat group where members discussed the sexual abuse of children and shared child pornographic images and videos. Between September 3 and September 13, 2017, Blank distributed multiple links to online cloud storage accounts containing images and videos that depicted minors engaged in sexually explicit conduct. In total, the links that Blank shared contained approximately 2,630 child-pornographic images and videos. Blank admitted to law enforcement officers that he had shared the links with the group because he desired to be elevated to the position of an administrator in the chat group.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
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 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 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.justice.gov/psc.
KC Man Pleads Guilty, KC Woman Sentenced Following Fatal Shooting During a Drug DealRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man and woman who were involved in a fatal shooting during a drug deal, which they attempted to cover up by falsely claiming an attempted rape, both appeared in federal court today.
Orval L. Johnson, 26, pleaded guilty before U.S. Chief District Judge Beth Phillips to three counts of distributing cocaine, one count of possessing a firearm in furtherance of a drug-trafficking crime, one count of possessing cocaine with the intent to distribute, and one count of being a drug user in possession of a firearm.
Co-defendant Latasha M. Alexander, 27, was sentenced in a separate hearing to eight months in federal prison without parole. Alexander, who pleaded guilty to misprision of a felony, has been in federal custody since her bond was revoked in October 2018.
By pleading guilty today, Johnson admitted that he sold cocaine to an undercover detective with the Kansas City, Mo., Police Department on three separate occasions in 2017. During the third drug transaction, Johnson was armed with a loaded Glock .357-caliber pistol with an extended magazine. Johnson told the undercover detective that someone recently tried to rob him and threatened to kill him and his girlfriend. “I had to kill (him),” Johnson said, “I blew half his … face off.”
According to court documents, Johnson was referring to a homicide investigation in the Knob Hill neighborhood of Kansas City, Mo. Alexander falsely claimed that a man, identified in court documents as “R.B.,” came to her residence on March 9, 2017, to smoke marijuana and tried to rape her. She told law enforcement officers that R.B. fired a shot at her, then she shot and killed him in self-defense. Investigators believed her lie, according to court documents, until Johnson bragged about the killing to the undercover detective.
Alexander later admitted that she falsely reported the attempted rape in order to conceal Johnson’s drug-trafficking offense. Alexander pleaded guilty to misprision of a felony on Oct. 23, 2018.
Johnson and Alexander told investigators that R.B. came to their apartment to purchase cocaine. He attempted to rob Johnson, and a struggle ensued. Johnson yelled at Alexander to grab the gun; she retrieved a firearm and shot R.B., who then attacked her. Johnson grabbed the gun and shot R.B. several times, killing him. According to court documents, both Johnson and Alexander consistently claimed self-defense, which is not refuted by the physical evidence at the scene.
Johnson was arrested on March 14, 2017. The day after his admission to the undercover detective, the undercover detective contacted Johnson to arrange for the purchase of 3.5 grams of cocaine for $170. Johnson was arrested when he left a nearby residence on his way to conduct the drug transaction. He had a Glock .357-caliber semi-automatic pistol, which had been reported as stolen, in his right front pants pocket and 3.39 grams of cocaine in his left coat pocket.
Johnson admitted to law enforcement officers that he had been making deliveries of cocaine five to 10 times a day, every day since November 2016. Johnson said he had been using about a gram of cocaine a day since November of 2016.
Under federal statutes, Johnson is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Adam Caine. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jordanian National Pleads Guilty to Conspiracy to Bring Aliens into the United StatesRead the Press Release
WASHINGTON – Moayad Heider Mohammad Aldairi, 31, pleaded guilty to conspiracy to bring aliens to the United States and a related charge for his role in a scheme to smuggle Yemeni aliens through Mexico to the United States.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John F. Bash of the Western District of Texas and Special Agent in Charge Shane M. Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio made the announcement.
According to the plea agreement, during the second half of 2017, Aldairi conspired with others to smuggle at least six Yemeni nationals across the Texas border and into the United States in exchange for a fee. Aldairi admitted his role in transporting the aliens from Monterrey, Mexico to Piedras Negras where he directed them to cross the Rio Grande River into the United States. Aldairi provided construction hard hats and reflective vests to some of the aliens in an effort to enable them to blend in after crossing. Aldairi will be sentenced by the Honorable Alia Moses at a later date.
“When Mohammad Aldairi illegally smuggled multiple Yemeni aliens across our southwest border, he put the security of the United States in peril,” said Assistant Attorney General Benczkowski. “The Department of Justice cannot — and will not — tolerate such threats to our national security. The Criminal Division remains dedicated to prosecuting alien smugglers, especially criminals like Aldairi who attempt to sneak aliens from countries of interest into the United States.”
“Border security is national security. We simply cannot have an immigration system that allows people from all over the world to enter this country without detection,” said U.S. Attorney Bash. “We must know the identity of every person setting foot on U.S. soil, however they enter.”
"This investigation is a great example of how Homeland Security Investigations uses its worldwide resources, foreign and interagency partnerships to bring international criminals to justice in the United States,” said Special Agent in Charge Folden. “Mohammad Aldairi was a key facilitator and smuggler of Yemeni nationals; the illicit pathway he created into the U.S. is now dismantled.”
“This case is a perfect example of collaboration between different government agencies, making each individual agency more effective than it would be on its own,” said Chief Patrol Agent Raul Ortiz the Del Rio Sector. “The U.S. Border Patrol relies on cooperation with our law enforcement partners to secure our nation’s borders and to protect the communities we live in.”
This case is being investigated by HSI Eagle Pass, with assistance from HSI New York, HSI Monterrey, HSI Jordan, the U.S. Embassy of Jordan, U.S. Customs and Border Protection, U.S. Border Patrol and FBI San Antonio. The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case is being prosecuted by Trial Attorney James Hepburn of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Matthew Watters of the Western District of Texas.
Jordanian National Pleads Guilty to Conspiracy to Bring Aliens into the United StatesRead the Press Release
Moayad Heider Mohammad Aldairi, 31, pleaded guilty to conspiracy to bring aliens to the United States and a related charge for his role in a scheme to smuggle Yemeni aliens through Mexico to the United States.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John F. Bash of the Western District of Texas and Special Agent in Charge Shane M. Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio made the announcement.
According to the plea agreement, during the second half of 2017, Aldairi conspired with others to smuggle at least six Yemeni nationals across the Texas border and into the United States in exchange for a fee. Aldairi admitted his role in transporting the aliens from Monterrey, Mexico to Piedras Negras where he directed them to cross the Rio Grande River into the United States. Aldairi provided construction hard hats and reflective vests to some of the aliens in an effort to enable them to blend in after crossing. Aldairi will be sentenced by the Honorable Alia Moses at a later date.
“When Mohammad Aldairi illegally smuggled multiple Yemeni aliens across our southwest border, he put the security of the United States in peril,” said Assistant Attorney General Benczkowski. “The Department of Justice cannot — and will not — tolerate such threats to our national security. The Criminal Division remains dedicated to prosecuting alien smugglers, especially criminals like Aldairi who attempt to sneak aliens from countries of interest into the United States.”
“Border security is national security. We simply cannot have an immigration system that allows people from all over the world to enter this country without detection,” said U.S. Attorney Bash. “We must know the identity of every person setting foot on U.S. soil, however they enter.”
"This investigation is a great example of how Homeland Security Investigations uses its worldwide resources, foreign and interagency partnerships to bring international criminals to justice in the United States,” said Special Agent in Charge Folden. “Mohammad Aldairi was a key facilitator and smuggler of Yemeni nationals; the illicit pathway he created into the U.S. is now dismantled.”
“This case is a perfect example of collaboration between different government agencies, making each individual agency more effective than it would be on its own,” said Chief Patrol Agent Raul Ortiz the Del Rio Sector. “The U.S. Border Patrol relies on cooperation with our law enforcement partners to secure our nation’s borders and to protect the communities we live in.”
This case is being investigated by HSI Eagle Pass, with assistance from HSI New York, HSI Monterrey, HSI Jordan, the U.S. Embassy of Jordan, U.S. Customs and Border Protection, U.S. Border Patrol and FBI San Antonio. The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case is being prosecuted by Trial Attorney James Hepburn of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Matthew Watters of the Western District of Texas.
Johnstown Felon Charged with Illegally Possessing Firearm and AmmunitionRead the Press Release
PITTSBURGH, PA – A resident of Johnstown, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Sean Zachary Horton, 29, as the sole defendant.
According to the Indictment, Horton was in possession of a firearm and ammunition while having been previously convicted of felonies.
The law provides for a maximum total sentence of not more than ten years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant United States Attorney Chad R. Parks is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Alien Sentenced to Federal Prison for Possessing a Gun While Being a Meth UserRead the Press Release
An illegal alien was sentenced to 21 months’ in federal prison today.
Luis Alberto DeLoera Serna, age 40, received the prison term after a January 11, 2019, guilty plea to one count of possession of a firearm by a prohibited person.
Evidence produced by the United States at the change of plea and sentencing hearings revealed DeLoera Serna, was not only an alien illegally in the United States and drug user in possession of a firearm, but that he was also an armed drug dealer with a criminal history. That history included traffic offenses, domestic violence, and seven illegal entries into the United States.
DeLoera Serna was sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand. DeLoera Serna was sentenced to 21 months’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system. DeLoera Serna is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of the Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violence crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violence offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-04091.
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Huntington Woman Pleads Guilty to Federal Heroin ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman caught selling heroin last year in Huntington pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Tonya Lynn Thompson, 36, entered a guilty plea to distributing heroin in federal court in Huntington. Stuart commended the investigative efforts of the FBI Drug Task Force and the Cabell County Sheriff’s Department.
“Deadly and powerful fentanyl, heroin and methamphetamine,” said United States Attorney Mike Stuart. “Too many drug dealers like Thompson have peddled their poisons in Huntington. We’re doing our best to hold drug dealers accountable.”
On July 11, 2018, an informant working at the direction of the Sheriff’s Department went to Thompson’s residence located at 831 15th Street in Huntington to purchase heroin. Insider the residence, Thompson sold the informant heroin in exchange for $140. Thompson also admitted as part of her plea agreement that she assisted in the sale of fentanyl to an informant the prior day at her residence.
On July 16, 2018 deputies executed a search warrant at Thompson’s residence. During the search, deputies recovered approximately 12 grams of fentanyl and approximately 48 grams of methamphetamine. Also as part of her plea agreement, Thompson admitted that she distributed fentanyl, heroin, and methamphetamine in Huntington between July of 2017 and July of 2018. Thompson further admitted that she allowed others to stay in her residence for the purchase of storing and selling drugs.
Thompson faces up to 20 years in federal prison when she is sentenced on August 5, 2019.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
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Huntington Man Sentenced for Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced today to 10 months in prison, announced United States Attorney Mike Stuart. Henry Davis, also known as “Hen”, 36, previously pled guilty to distributing heroin.
Davis admitted that on September 29, 2015 he distributed heroin to a confidential informant in Huntington.
“Thanks to the excellent work of the Huntington Police Department, another heroin dealer is off the streets and headed to a federal pen,” said United States Attorney Mike Stuart. “Selling heroin is not a good career option.”
The Huntington Police Department conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Hartford Teen Pleads Guilty to Robbery and Firearm OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ISAIAH HALLIDAY, 19, of Hartford, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to robbery and firearm offenses related to a scheme that victimized several individuals who sought to purchase items over mobile classifieds web apps.
According to court documents and statements made in court, between September and November 2017, more than a dozen robberies occurred in Hartford during which individuals lured would-be customers with real or nonexistent items posted to mobile classifieds web apps, such as Offer Up, Letgo and Craigslist, through the use of a fake account. Upon arrival, the customers were robbed of money and cell phones. In all of the robberies, assailants brandished what victims described to be a firearm.
On November 11, 2017, Hartford Police officers responded to a location on Blue Hills Avenue in response to a report of a male suffering from a gunshot wound. Upon arrival, the victim stated that he had traveled to Mansfield Street in Hartford to meet with an individual he contacted on Offer Up to purchase an iPhone. When he arrived, Halliday approached the front passenger door of his vehicle and pointed a black handgun at him. After the victim attempted to drive away, Halliday fired one round at him, striking him in the right forearm.
Halliday pleaded guilty to one count of interference with commerce by robbery, an offense that carries a maximum term of imprisonment of 20 years, and one count of use of a firearm in relation to a crime of violence, an offense that carries a consecutive term of imprisonment of 10 years to life.
In pleading guilty, Halliday admitted that he and several associates were involved in other similar armed robberies and attempted robberies between September and November 2017.
Halliday has been detained since his arrest on November 17, 2017.
Judge Meyer scheduled sentencing for August 7, 2019.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Gainesville Man Sentenced to 120 Months in Prison for Obtaining Minor for Commercial SexRead the Press Release
GAINESVILLE, FLORIDA – Jeffrey Farrell Davis, 36, of Gainesville, Florida, was sentenced to 120 months in prison yesterday, 25 years of supervised release, $3,000 victim restitution, and a $5,000 special assessment pursuant to the Justice for Victims of Trafficking Act. In March 2018, Davis pleaded guilty to child sex trafficking by obtaining a minor child for purposes of engaging in sexual activity. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
Between April and June 2017, several persons were involved in a scheme to make money using a 14-year-old child to perform commercial sex acts. Advertisements identifying the victim under a false name were posted in the “escort services” section of Backpage.com for the Gainesville area. The advertisements were actually for the purpose of offering the child for commercial sexual activity.
Persons responded to the advertisements by calling or texting a cellular telephone number provided in the ad. Arrangements were then made to deliver the child for purposes of commercial sex. The child was delivered to persons at various locations in north central Florida, including private residences and motels. Davis is one of the individuals who responded to the Backpage.com advertisements. He engaged in commercial sex with the child on two separate occasions.
The case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. The case was prosecuted by Assistant United States Attorney Frank Williams.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Grayson Co. Man Sentenced to 50 Years for Production, Distribution and Possession of Child PornRead the Press Release
LOUISVILLE, Ky. – United States District Judge Joseph H. McKinley sentenced James D. Armes to 50 years of imprisonment on Friday, and a lifetime of supervised release, for multiple counts of production and distribution of child pornography, and possession of child pornography, announced United States Attorney Russell M. Coleman.
“The basic duty of government is to protect our kids, in this this case prosecuting a clear threat and sending him to federal prison for five decades,” said U.S. Attorney Russell Coleman.
Armes, 37, of Millwood, Kentucky, in Grayson County, was indicted on five counts of production of child pornography, two counts of distribution of child pornography, and one count of possession of child pornography on May 9, 2018. On December 10, 2018, Armes admitted before the Court his guilt on all counts.
According to a Sentencing Memo, on or about October 16, 2017, and November 28, 2017, Armes used his cellular phone to create numerous images and videos of the sexual exploitation of two children. Armes made sexual contact with Jane Doe, a minor female less than 1-year old, numerous times. He also took several pictures of the genitals of John Doe, a minor male under 5 years old. Armes was 36-years old at the time of his criminal conduct. Because of a prior rape conviction he faced a mandatory minimum sentence of 25 years imprisonment.
This case was prosecuted by Assistant United States Attorney Spencer McKiness, and investigated by the Federal Bureau of Investigation and the Grayson County Sheriff’s Department.
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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 victim
Former Medical Doctor Sentenced to 20 Years’ Imprisonment for Unlawful Distribution of Opioids and Causing the Overdose Death of a PatientRead the Press Release
Martin Tesher, a former family medical doctor, was sentenced today by United States District Judge Raymond J. Dearie to 20 years’ imprisonment for nine counts of unlawful distribution of oxycodone without a legitimate medical purpose and one count of unlawful distribution of oxycodone and fentanyl that resulted in the death of a patient. The Court also ordered Tesher to pay $3,700 in restitution and forfeit $2,725 in criminal proceeds. Tesher was convicted by a federal jury in July 2018 following a nearly two-week trial.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the sentence.
Between June 2013 and January 2017, Tesher prescribed oxycodone tablets and fentanyl patches without a legitimate medical purpose to five patients after learning, or had reason to believe, that these patients were addicted to drugs. None of these patients had verified medical conditions that would require the prescription of Schedule II opioids. While under Tesher’s care, Nicholas Benedetto, 27, tested positive for cocaine, heroin, methadone, oxycodone and fentanyl. Nonetheless, Tesher prescribed oxycodone and fentanyl patches for Benedetto. On March 5, 2016, Benedetto was found dead of a fatal combination of oxycodone and fentanyl, two days after he had been prescribed those drugs by Tesher.
“In the midst of an unprecedented opioid epidemic, Dr. Tesher used his medical skills to harm, not heal and in doing so he cost a young man his life,” stated United States Attorney Donoghue. “Such criminal conduct is an utter betrayal of the trust our society places in doctors and it warrants the severe sentence imposed today.”
“Today’s sentence demonstrates how DEA, EDNY and their many law enforcement partners have come full circle to eliminate the threat of rogue doctors, like Tesher who posed a threat to the public health of the citizens of New York City, Staten Island, and beyond,” stated DEA Special Agent-in-Charge Donovan. “DEA and its law enforcement partners will continue to seek justice for patients like Nicholas Benedetto, as well as the countless other families and friends who have suffered greatly at the hands of this opioid epidemic.”
The government’s investigation was led by the DEA’s Long Island Tactical Diversion Squad, comprising agents and officers of the DEA, Internal Revenue Service, Nassau County Police Department (NCPD), Suffolk County Police Department (SCPD), Port Washington Police Department and Rockville Centre Police Department. The DEA Tactical Diversion Squad also worked in conjunction with officers and agents of the New York City Police Department (NYPD), Criminal Enterprise Investigations, the Department of Health & Human Services, Office of Inspector General and NCPD’s Asset Forfeiture and Intelligence Bureau.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this district, the NCPD and SCPD, the NYPD and the New York State Police, along with other key federal, state and local government partners, launched the Initiative to mount a comprehensive response to what the United States Department of Health and Human Services Centers for Disease Control and Prevention called an epidemic increase in the abuse of so-called opioid analgesics. To date, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 20 health care professionals; taken civil enforcement actions against a hospital, a pharmacy and pharmacy chain; removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Jennifer M. Sasso and Penelope Brady are in charge of the prosecution.
The Defendant:
DR. MARTIN TESHER
Age: 83
Manhattan, New YorkE.D.N.Y. Docket No. 17-CR-523 (RJD)
Former Local Military Members Sentenced in International Cocaine Importation ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Daniel J. Gould, 36, of Crestview, and Henry W. Royer, 36, of Fayetteville, North Carolina, were each sentenced to 9 years in federal prison today for two drug trafficking conspiracy counts involving large amounts of cocaine. The sentences were announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
Gould pleaded guilty to the federal indictment in December 2018, and Royer pleaded guilty in February 2019. A third co-defendant, Gustavo A. Pareja, 25, of Colombia, is awaiting extradition to the United States to stand trial in Pensacola.
Between January and August 2018 in the Northern District of Florida, and in the country of Colombia, former Master Sergeant Daniel Gould of the United States Army and Henry Royer, formerly of the United States Army and Army National Guard, conspired to distribute large amounts of cocaine, knowing it would be unlawfully imported into the United States.
In August 2018, the United States Drug Enforcement Administration received information that Gould had attempted to import 40 kilograms of cocaine onto a military transport flight in Colombia with a final destination in the Northern District of Florida. Suspicion was aroused at the United States Embassy in Colombia when packages were x-rayed, revealing cocaine within gutted out punching bags. On August 13, 2018, when the cocaine was seized at the embassy, Gould had already returned home and was awaiting its arrival.
The conspiracy began in early 2018 when Gould and Royer initially imported 10 kilograms of cocaine into the United States. Royer traveled to Colombia with U.S. currency to use as payment. Gould placed the cocaine in a gutted punching bag and had the package transported to Bogota to be placed on a United States military aircraft. A few days later, the cocaine-filled punching bag arrived at Duke Field, which is an auxiliary airfield of Eglin Air Force Base. Gould and Royer distributed the 10 kilograms of cocaine in Northwest Florida.
Gould and Royer then reinvested the money from the first load of cocaine into a second load of 40 kilograms of cocaine. Gould placed approximately $65,000 in cash on a United States military cargo aircraft destined for Colombia as funds for the next purchase.
In early August 2018, Gould and Royer returned to Colombia and provided money for the 40 kilograms to their source of cocaine supply. Gould and Royer received the cocaine, loaded the 40 kilograms into two gutted punching bags, and coordinated transport to the embassy before flying back to the United States. The estimated value of 40 kilograms of cocaine in the Northern District of Florida would be in excess of $1 million.
This case resulted from an investigation by the Drug Enforcement Administration and the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) program. Senior Litigation Counsel David L. Goldberg is prosecuting the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Florida Property Manager Sentenced to More than 12 Years in Prison for Orchestrating an International Fraud SchemeRead the Press Release
A former resident of Fort Lauderdale, Florida was sentenced to over twelve years in prison and ordered to pay over $7 million in restitution for orchestrating an international property fraud scheme.
Ariana Fajardo Orshan, U.S Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau Investigation (FBI), Miami Field Office, made the announcement.
Dale Scott Wood, 46, formerly of Fort Lauderdale, Florida, pled guilty to a single count information that charged him with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, on July 25, 2018 (Case No. 18-CR-60202) U.S. District Judge William P. Dimitrouleas sentenced Wood to 151 months in prison, to be followed by 3 years of supervised release. Wood was also ordered to pay $7,130,410 in restitution.
According to court documents, investors in Germany formed a limited partnership to invest in the United States real estate mortgage market. The partnership made mortgage loans secured by commercial properties throughout the United States. After the United States real estate market crash beginning in 2007, the partnership had to foreclose on many of the mortgages it owned domestically. The partnership needed someone to oversee the foreclosure process and manage, maintain, and market the properties when the partnership acquired title. The partnership retained Wood for that purpose. From November 2009 to November 2013, Wood retained Theodore Gunter Gies, a bookkeeper, to assist him. Wood and Gies, without disclosure to or authorization from the partnership, sold the properties to third parties. Wood and Gies then submitted, via international e-mail, false financial and status reports indicating that the properties were still held by the partnership. The loss to the partnership by the actions of Wood and Gies was $7,130,410.
Gies previously pled guilty for his role in the conspiracy and was sentenced to 51 months in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. The case was prosecuted by Assistant U.S. Attorneys Thomas P. Lanigan and Karen Olivia-Marie Stewart.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former FCI-Berlin Chaplain Pleads Guilty to Accepting Bribes to Smuggle Drugs into PrisonRead the Press Release
CONCORD - Joseph Buenviaje, 53, of Berlin, pleaded guilty in federal court to accepting bribes from inmates and providing contraband in prison, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in 2015 Buenviaje began working as a chaplain at the Federal Correctional Institution in Berlin, New Hampshire. Beginning April 2018 through November 2018, while working as a chaplain, Buenviaje smuggled drugs, including Suboxone, synthetic cannabinoids, and marijuana, cellular telephones, tobacco, and other contraband into the prison in exchange for bribe payments. When interviewed by investigators in November 2018, Buenviaje admitted that he had been smuggling drugs and other contraband into the prison once or twice per week, he had received bribes of at least $12,000, and inmates owed him an additional $3,000 to $5,000 for contraband he had or was going to provide.
Buenviaje also admitted that he received the contraband and some of the bribe payments by mail addressed to his ministry. Buenviaje received Suboxone—an opioid ordinarily prescribed to treat drug addiction—in its original packaging. Upon receipt, Buenviaje repackaged the drug in cellophane for distribution in the prison. Buenviaje also received notebooks with drug-soaked pages that he smuggled into the prison. After smuggling items he received into the prison, Buenviaje placed the contraband in a cabinet in the prison chapel where inmates would later retrieve the items.
In November 2018, during a consensual search of Buenviaje’s car and office, investigators found 111 Suboxone strips, some of which were in Buenviaje’s car and some of which were in Buenviaje’s office repackaged for distribution. Investigators also located multiple notebooks that Buenviaje had placed in a cabinet in his office for an inmate. Some pages in the notebooks had been soaked with unlawful synthetic cannabinoids, specifically FUB-AMB and 5F-ADB.
Buenviaje is scheduled to be sentenced on August 1, 2019.
“Those who work in federal prisons have a responsibility to uphold the law,” said U.S. Attorney Murray. “By smuggling contraband into a prison, this defendant jeopardized the safety of the inmates and staff at the facility. Such conduct simply cannot be tolerated.”
“Today’s guilty plea demonstrates that anyone who violates the public’s trust and jeopardizes the security of federal prisons by introducing contraband will be brought to justice. We will continue to work with our law enforcement partners to root out smuggling schemes in federal prisons,” said DOJ OIG Special Agent-in-Charge Guido Modano.
This matter was investigated by the U.S. Department of Justice Office of the Inspector General and FCI-Berlin’s Office of the Special Investigative Supervisor. The case is being prosecuted by Assistant U.S. Attorney Anna Z. Krasinski and Special Assistant U.S. Attorney Matthew T. Hunter.
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Former District of Columbia Attorney Found Guilty of $2 Million Investment Fraud SchemeRead the Press Release
A former attorney who perpetrated a multimillion-dollar investment fraud scheme, was convicted today by a jury in the District of Columbia, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jessie K. Liu for the District of Columbia.
Brynee Baylor was convicted of one count of conspiracy to commit securities fraud, one count of securities fraud, and five counts of first-degree fraud under District of Columbia law.
According to court documents and the evidence presented at trial, Baylor, a former partner in the D.C. law firm of Baylor & Jackson PLLC, conspired with a Pennsylvania man and his company, known as the Milan Group, to recruit investors to a purported trading program. Investors were promised extremely large profits in a short time with little or no risk.
The evidence presented at trial showed that in 2010 and 2011, Baylor caused more than $2 million of investor funds to pass through the Baylor & Jackson lawyer trust account. More than half of the investor funds were used for the benefit of Baylor, the Pennsylvania man, the Milan Group, and Baylor & Jackson. Baylor falsely assured investors that the purported trading program was legitimate and had little if any risk. Baylor also falsely told investors that she had personally observed investors successfully complete transactions with the Milan Group. In reality, the Milan Group did not complete any such transactions and did not return any of the investors’ money.
In 2011, the Securities and Exchange Commission (SEC) sued Baylor and others for fraud in connection with the purported trading program.
Sentencing is not yet scheduled. Baylor faces a statutory maximum sentence of five years in prison for the conspiracy count, 20 years in prison for the securities fraud count, and 10 years in prison for each of the first-degree fraud counts. Baylor will also face a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Liu thanked the SEC for its invaluable assistance and commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Jeffrey McLellan and Eric Powers of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former CEO of Hospital Chain to Pay $3.46 Million to Resolve False Billing and Kickback AllegationsRead the Press Release
Gary D. Newsome, former CEO of Health Management Associates LLC (HMA), a hospital chain that was headquartered in Naples, Florida, has agreed to pay the United States $3.46 million to settle allegations that he caused HMA to knowingly submit false claims to government health care programs by admitting patients who could have been treated on a less costly, outpatient basis, the Department of Justice announced. The settlement also resolves allegations that Newsome caused HMA to pay remuneration to Emergency Department (ED) physicians in return for referrals.
“Those who bill federal health care programs for unnecessary hospital stays will be held accountable for wasting federal dollars,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Patients deserve the unfettered, independent judgment of their health care professionals. We will pursue those who cause hospitals to offer financial incentives to physicians in return for improper patient referrals that undermine the integrity of our health care system.”
“A physician’s health care decisions should be driven by what is in the patient’s best interest, not by what helps line a provider’s pockets,” said Barbara Bowens, the Acting U.S. Attorney for South Carolina for purposes of this case. “The U.S. Attorney’s Office will not tolerate false claims based on unnecessary hospital admissions, which drive up health care costs and can harm patients.”
“Providers are expected to closely follow rules and bill properly. Further, in this case, the government contended that Newsome directed illegal payments for referrals,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services. “Taxpayer money wasted is money stolen from vital government health programs.”
The settlement resolves allegations that Newsome caused HMA to pressure ED physicians to increase inpatient admissions by recommending admission without regard to medical necessity. The government claimed that the inpatient admission of these beneficiaries was not medically necessary, and that the care needed by, and provided to, these beneficiaries should have been provided in a less costly outpatient or observation setting. Hospitals generally receive significantly higher payments from Medicare for inpatient admissions as opposed to outpatient treatment; therefore, the admission of beneficiaries who do not need inpatient care, as alleged here, can result in substantial financial harm to the Medicare program.
The United States also alleged that Newsome caused HMA to pay remuneration to EmCare, a company that provided physicians to staff HMA hospital EDs, to recommend admission when patients should have been treated on an outpatient basis. As part of the alleged scheme, Newsome caused HMA to make certain bonus payments to EmCare ED physicians and tied EmCare’s retention of existing contracts and receipt of new contracts to increased admissions of patients who came to the ED.
Newsome served as CEO of HMA from September 2008 through July 2013. HMA was acquired by Community Health Systems Inc. (CHS), another hospital chain, in January 2014, after the alleged conduct at HMA occurred.
HMA and EmCare have already resolved their liability to the government for these allegations. In September 2018 HMA entered into a civil settlement under which it paid $61.8 million. Simultaneously, HMA entered into a Non-Prosecution Agreement (NPA) with the Criminal Division’s Fraud Section under which it paid a $35 million monetary penalty. In addition, an HMA subsidiary that formerly owned one hospital pled guilty to a single count of conspiracy to commit healthcare fraud, and paid a $3.25 million fine. In December 2017, EmCare paid $29.6 million to resolve these allegations.
This settlement resolves a lawsuit originally filed in the U.S. District Court for the District of South Carolina by Jacqueline Meyer, a former employee of EmCare, and J. Michael Cowling, a former employee of HMA, under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring lawsuits on behalf of the United States and share in any recovery. Meyer and Cowling will receive approximately $725,000 from the settlement. The case was transferred to the U.S. District Court for the District of Columbia and is United States ex rel. Meyer & Cowling v. HMA, Inc., 1:14-cv-00586-RBW (D.D.C).
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of South Carolina, the U.S. Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Felon Who Shot a Gun He Illegally Possessed Sentenced to over Five Years in Federal PrisonRead the Press Release
A convicted felon who illegally possessed a firearm was sentenced on April 29, 2019, to more than five years in federal prison.
Dondre Minor, age 23, from Chicago, Illinois, received the prison term after a November 20, 2019 guilty plea to being a felon in possession of a firearm.
Evidence during the case established that Minor illegally possessed an AR556 .223 caliber semi-automatic firearm on February 21, 2018. Minor and two other individuals took various guns outside of Dubuque and fired multiple rounds from the guns while filming a video. Minor possessed the firearm after being convicted of criminal gang participation, a felony offense.
Minor was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Minor was sentenced to 70 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program 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.
Minor is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1042.
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Federal & State Officials to Announce Charges Against Current Dayton City Official, Former City CommissionerRead the Press Release
Dayton – Today the government is unsealing indictments charging current and former city officials, as well as local businessmen, with crimes related to corruption and fraud. Today’s announcement involves four Dayton men.
The briefing will be held:
TODAY: TUESDAY, APRIL 30, 2019
WHEN: 1 P.M.
WHERE: Walter H. Rice Federal Building
First Floor
200 W. 2nd St.
Dayton, Ohio 45402
WHO: U.S. Attorney Benjamin C. Glassman
Assistant Special Agent in Charge Joe Deters, FBI
Ohio Attorney General Dave Yost
Auditor of State Office
Room available beginning at 12:45 P.M. No TV lighting or multbox will be available. ID will be required for entrance at Security.
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Fake Lawyer Pleads Guilty to Defrauding Members of Immigrant Communities in Northern VirginiaRead the Press Release
ALEXANDRIA, Va. – A California man pleaded guilty today to posing as a lawyer in order to defraud numerous car accident victims who were members of immigrant communities in Northern Virginia.
According to court documents, Tuan Duc Nguyen, 55, of Garden Grove, falsely held himself out to car accident victims and insurance companies alike as a lawyer for over four years. In the course of his scheme, Nguyen told victims he would represent their interests and they would receive settlement proceeds from insurance companies. But instead of disbursing funds to the victims, Nguyen kept the money for himself. Nguyen carried out the scheme by providing false address information to settling insurance companies so that the victims would not learn of the settlement and by signing documents with false signatures. When victims contacted Nguyen to inquire about the status of their claims, Nguyen often deceived them by stating that negotiations were ongoing when, in fact, the claims had already been settled and Nguyen had stolen the money.
Nguyen pleaded guilty to mail fraud and wire fraud and faces a maximum penalty of 20 years in prison when sentenced on September 6. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Special Assistant U.S. Attorney Andrew Dober and Assistant U.S. Attorney Kellen S. Dwyer are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-329.
Drug User Who Illegally Possessed Gun Sent to Federal PrisonRead the Press Release
A man who illegally possessed a firearm was sentenced on April 29, 2019, to more than three years in federal prison.
Tondrell Darnez Gary, Jr., age 23, from Waterloo, Iowa, received the prison term after a November 5, 2018, guilty plea to being a drug user in possession of a firearm.
At the guilty plea, Gary admitted he possessed a Ruger 9mm handgun on June 11, 2018. Gary admitted that when police attempted to stop a car he was traveling in, he tossed the gun out of the car window into a residential area. Police eventually stopped the car and Gary admitted to being a regular marijuana user.
Gary was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gary was sentenced to 41 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program 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.
Gary is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2047.
Follow us on Twitter @USAO_NDIA.
Dominican National Sentenced to 2 Years in Prison for Identity TheftRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JUAN TORRES RODRIGUEZ, 39, a citizen of the Dominican Republic, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 24 months of imprisonment for identity theft.
According to court documents and statements made in court, on January 27, 2018, Torres Rodriguez posed as another individual (“the victim”) in an attempt to exchange a Puerto Rican driver’s license for a Connecticut driver’s license at the Connecticut Department of Motor Vehicles (“DMV”) office in Wethersfield. The Puerto Rican driver’s license was in the name of the victim, and Rodriguez also presented a birth certificate and a social security card bearing the name of the victim. The victim had not given Torres Rodriguez permission to use his means of identification.
A DMV employee recognized the submitted documents to be fraudulent and confirmed that victim’s birth certificate has been reported stolen. Torres was arrested by the Connecticut State Police shortly thereafter.
The investigation revealed that Torres Rodriguez had been removed from the U.S. in 2001, 2013 and 2014.
Rodriguez has been detained since his arrest. On January 22, 2019, he pleaded guilty to one count of aggravated identity theft.
This matter was investigated by the Connecticut State Police and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
Dominican National Convicted by Federal Jury of Laundering Nearly $1 Million in Fraudulently-Obtained IRS Refund ChecksRead the Press Release
BOSTON – A Dominican national was convicted yesterday by a federal jury in Boston of laundering close to $1 million in fraudulently-obtained IRS refund checks using 11 different bank accounts at five different banks.
Francisco Oscar “Frank” Grullon, 52, was convicted following a six-day jury trial of one count of conspiracy, 15 counts of theft or conversion of United States property, and one count of conspiracy to commit money laundering. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for July 24, 2019. Grullon was arrested in the Dominican Republic and extradited to the United States in 2018.
Grullon conspired with an attorney R. David Cohen, who, in 2016, was convicted for his role in the scheme, to deposit and launder over 100 fraudulently-obtained tax refund checks. The checks were based on fraudulent tax returns with false W-2 information, usually using the name and Social Security number of a resident of Puerto Rico, where residents are not required to file federal income tax returns. Once the fraudulent returns were accepted by the IRS, refund checks were sent to addresses in Lawrence, East Boston and New York.
From October 2011 until November 2013, Grullon and his co-conspirators obtained and negotiated close to $1 million in fraudulent checks into bank accounts in the name of a front company, AD Professional Association Inc., and in co-conspirator R. David Cohen’s attorney client trust accounts. When questioned by bank officials about the suspicious quantity of U.S. Treasury checks, Grullon falsely claimed that he was depositing them as a favor for friends and that he had a check-cashing license. Later, after their bank accounts were closed by several banks, Grullon and Cohen recruited a third co-conspirator and directed him to open accounts for AD Professional Association Inc., deposit more than $500,000 in treasury checks, and make hundreds of thousands of dollars in cash withdrawals.
The charge of conspiracy provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 or twice the loss or gain from the offense. The charge of theft or conversion of U.S. property provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the loss or gain from the offense. The charge of money laundering provides a sentence of no greater than 20 years in prison, five years of supervised release, a fine of $500,000 or twice the value of the property involved in the transaction. 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 Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was also investigated by the Department of Homeland Security and U.S. Secret Service. Assistant U.S. Attorneys S. Theodore Merritt and Elysa Q. Wan of Lelling’s Criminal Division are prosecuting the case.
Dominican Man Sentenced to 240 Months in Prison for Heroin TraffickingRead the Press Release
CONCORD –United States Attorney Scott W. Murray announced that Santos Guerrero Morillo, 39, of the Dominican Republic, was sentenced to 240 months in federal prison for his leadership role in a heroin trafficking conspiracy.
Documents filed with the court established that between May 2013 and October 2016, Guerrero Morillo was the leader of the New England cell of an international drug trafficking organization responsible for the distribution of heroin and other drugs in Massachusetts, New Hampshire, and Maine. Guerrero Morillo’s cell operated out of Lawrence, Massachusetts, where its members received multi-kilogram shipments of heroin and other drugs, broke the shipments down into smaller units, and distributed them to regional sub-distributors. Guerrero Morillo managed at least ten co-conspirators with various roles related to the receipt, storage, and sale of drugs and laundering of drug proceeds.
Court documents further established that in August of 2015, Guerrero Morillo fled Massachusetts for his native Dominican Republic to avoid arrest by United States law enforcement, but continued to direct his subordinates in Lawrence from afar. Federal authorities sought Guerrero Morillo’s extradition. Dominican officials arrested him in February of 2018 and extradited him in June of 2018 to face charges in the District of New Hampshire.
Guerrero Morillo previously pleaded guilty to an indictment charging him with heroin trafficking conspiracy on January 22, 2019.
“International narcotics traffickers seek to profit from the suffering of those who are addicted to heroin and other dangerous drugs,” said U.S. Attorney Murray. “This case demonstrates the resolve of the law enforcement community in New Hampshire to hold drug traffickers accountable for the damage that they are causing in our state. We will not hesitate to reach into foreign countries, extradite drug traffickers, and bring them back to face justice.”
“New Hampshire is in the midst of a devastating opioid crisis,” said DEA Special Agent in Charge Brian D. Boyle. “The DEA will continue to use every resource available to identify those, like Mr. Morillo, who are contributing to the crisis. Today’s sentence not only holds Mr.Morillo accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic.”
This matter was investigated by the DEA; Homeland Security Investigations; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; the Lowell Police Department, the Methuen Police Department, and the Hillsborough County Drug Task Force. The case was prosecuted by Assistant U. S. Attorney Jarad Hodes. Former Assistant U.S. Attorney Donald Feith previously participated in this prosecution.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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District Man Sentenced to 70 Months for Bank Robbery Hold-Up at Branch in Downtown WashingtonRead the Press Release
WASHINGTON – Paul Bernard Jones, 59, of Washington, D.C., was sentenced today to 70 months’ imprisonment on a federal bank robbery charge for a hold-up last summer in downtown Washington, announced U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Jones pled guilty in the U.S. District Court for the District of Columbia on January 28, 2019. The plea, which the Court approved, called for an agreed-upon prison sentence of 70 to 87 months, to be followed by three years of supervised release. The Honorable Amy Berman Jackson sentenced Jones to 70 months’ incarceration, followed by three years of supervised release. As part of Jones’s sentence, he was ordered to forfeit $1,433 of U.S. Currency found on his person after the bank robbery, and pay back the bank $17 in restitution. Finally, Judge Berman Jackson ordered Jones to undergo anger management treatment, substance abuse treatment, and a variety of other conditions upon his release.
According to plea documents, on June 11, 2018, at approximately 9:10 a.m., Jones entered a TD Bank branch in the 1700 block of Connecticut Avenue NW. He walked up to a teller, took a wadded-up piece of paper, and tossed it at her. He then stated “give me everything, give me hundreds, fifties, and twenties only and don’t push anything. I have something on me.” The wadded-up piece of paper also demanded money and contained a threat. The teller provided Jones with $1,450 in cash and he fled the bank.
Within minutes, the Metropolitan Police Department and FBI responded to the bank. An MPD officer observed Jones at the intersection of 14th and R Streets NW, a few blocks from the bank. He tried to run, but was immediately apprehended. Law enforcement located $1,433 in cash in a search of the defendant. Jones has been in custody since his arrest.
The prosecution grew out of the efforts of the FBI Bank Robbery Task Force.
In announcing the plea, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Catherine O’Neal and Legal Assistant Emma Atlas of the U.S. Attorney’s Office. Finally, they commended the work of Assistant U.S. Attorney Gregory Rosen of the Violent Crime and Narcotics Trafficking Section, who prosecuted the matter.
Dallas, Texas Women Sentenced for Email Compromise SchemeRead the Press Release
HAMMOND - Rita Alielnour, of Dallas, Texas, was sentenced, on April 29, 2019, by U.S. District Court Judge Joseph S. Van Bokkelen to 12 months in prison followed by two years of supervised release after pleading guilty to wire fraud, announced U.S. Attorney Kirsch.
U.S. Attorney Kirsch said, “Email compromise and account takeover schemes cost victims hundreds of millions of dollars every year. Those schemes cannot be accomplished without people who open bank accounts and move the money. People engaged in such acts will be aggressively prosecuted.”
According to documents in the case, Alielnour participated in an email compromise and account takeover scheme that obtained over $335,000 during a two-day period in April 2017. As part of the scheme, Alielnour opened a bank account in the name of a non-existent business to receive fraudulent wire transfers. A victim in the Northern District of Indiana was tricked into wiring $282,000 for a down payment on a home into Alielnour’s bank account after members of the scheme spoofed the escrow officer’s email address and provided false wire instructions. A victim in Texas was tricked into wiring nearly $25,000 into Alielnour’s account believing it was payment of a business invoice. A second victim in Texas had his bank account compromised, and an unknown person wired money into Alielnour’s account.
All funds were recovered and returned to the victims.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations. This case was prosecuted by Assistant United States Attorney Alexandra McTague.
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Current City Official, Former Dayton City Commissioner Among Those Charged with FraudRead the Press Release
DAYTON – A federal grand jury here has returned indictments against a former Dayton city commissioner, a current city official and two Dayton businessmen, charging them with fraud and public corruption.
The indictments charge:
- Joey Williams, former Dayton City Commissioner, with bribery as a government official,
- Roshawn Winburn, current Director of Dayton’s Minority Business Assistance Center, with wire fraud and public corruption,
- Clayton Luckie, businessman, with conspiracy to commit mail and wire fraud,
- Brian Higgins, businessman, with wire fraud.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Ohio Attorney General Dave Yost and Ohio Auditor of State Keith Faber announced the indictments.
“The grand jury alleges that Winburn devised a scheme that deprived the people of Dayton of their right to the honest and faithful services of its public officials through bribery and the concealment of material facts and information regarding minority-owned, woman-owned and small disadvantaged businesses,” U.S. Attorney Glassman said. He noted that the investigation is continuing.
Williams is charged with soliciting bribes worth more than $5,000 as a government employee.
Williams served as an elected commissioner of the City of Dayton from 2001 until 2018. In 2015, Williams allegedly accepted a construction project at his personal home by an individual for a greatly reduced price in exchange for influencing the awarding of city contracts to that same individual.
The individual’s business was subsequently awarded at least $150,000 in contracts with both the City of Dayton and CityWide Development Corporation, a non-profit organization that functioned as a development and financing arm of the City of Dayton. CityWide routinely awarded thousands of dollars in contracts to private companies for the demolition of homes in Dayton.
It is alleged that Williams accepted more than $50,000 in free benefits from the individual, including cash payments and the construction of a patio at his home.
In an attempt to conceal the fraud, Williams allegedly demanded the individual create a fake invoice, falsely reflecting that Williams had personally paid the individual more than $50,000 for the home improvement project.
The grand jury charged Luckie with devising a fraudulent scheme to take advantage of programs offered by the federal and state governments to help disadvantaged businesses.
Luckie allegedly purported himself as affiliated with and authorized to speak on behalf of a disadvantaged business that provided administrative support services. He allegedly approached the owner of a demolition company in 2016 or early 2017 and offered Luckie’s company’s certification to help secure a demolition project from the City of Dayton.
He allegedly ordered magnetic signs with his company’s name on it to put on the side of trucks belonging to the actual demolition company. He is accused of sending false invoices for thousands of dollars to the City of Dayton.
Higgins is charged with filing a fraudulent insurance claim in connection with water damage to the Meeker Residence, an 8,000 square-foot house in Dayton. It is alleged that Higgins received more than $100,000 in insurance claims that he used for his personal benefit rather than to repair water damage that occurred from a 600-gallon fish tank.
Higgins allegedly submitted invoices and repair cost estimates from a construction vendor to the insurance company in order to obtain money. According to the indictment, the vendor documents were false and misrepresented the status of repair work at the Meeker Residence.
U.S. Attorney Glassman commended the investigation of this case by the FBI, Ohio Attorney General’s Bureau of Criminal Investigation (BCI) and the Ohio Auditor of State’s Office, as well as assistant United States Attorneys Brent Tabacchi, SaMee Harden and Dominick Gerace, who are representing the United States in this case.
Indictments merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
If you have any information related to the schemes alleged above, please contact the FBI’s Dayton Public Corruption Tip Line at 937-291-5222.
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Criminal Division Announces Publication of Guidance on Evaluating Corporate Compliance ProgramsRead the Press Release
The Criminal Division announced today the release of a guidance document for white-collar prosecutors on the evaluation of corporate compliance programs. The document, entitled “The Evaluation of Corporate Compliance Programs,” updates a prior version issued by the Division’s Fraud Section in February 2017. It seeks to better harmonize the guidance with other Department guidance and standards while providing additional context to the multifactor analysis of a company’s compliance program.
“Effective compliance programs play a critical role in preventing misconduct, facilitating investigations, and informing fair resolutions,” Assistant Attorney General Brian A. Benczkowski said. “Today’s guidance document is part of our broader efforts in training, hiring, and enforcement to help promote corporate behaviors that benefit the American public and ensure that prosecutors evaluate the effectiveness of compliance in a rigorous and transparent manner.”
The guidance document sets forth topics that the Criminal Division has frequently found relevant in evaluating a corporate compliance program, organizing them around three overarching questions that prosecutors ask in evaluating compliance programs: First, is the program well-designed? Second, is the program effectively implemented? And, third, does the compliance program actually work in practice?
To that end, Part I of the document discusses various hallmarks of a well-designed compliance program relating to risk assessment, company policies and procedures, training and communications, confidential reporting structure and investigation process, third-party management, and mergers and acquisitions. Part II details features of effective implementation of a compliance program, including commitment by senior and middle management, autonomy and resources, and incentives and disciplinary measures. Finally, Part III discusses metrics of whether a compliance program is in fact operating effectively, exploring a program’s capacity for continuous improvement, periodic testing, and review, investigation of misconduct, and analysis and remediation of underlying misconduct.
The document was compiled with the input of components across the Division, including attorneys from the Office of the Assistant Attorney General, Fraud Section, and the Money Laundering and Asset Recovery Section. For the full guidance document, click here.
Convicted Felon Sentenced to 80 Months in Prison for Possessing an Assault Rifle and AmmunitionRead the Press Release
OAKLAND –Cardelle Divon Peter was sentenced to 80 months in prison for possessing a firearm and ammunition after having been previously convicted of a felony, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down today by the Honorable Jeffrey S. White, United States District Judge.
Peter, 23, of Pittsburg, Calif., pleaded guilty to the charge on January 8, 2019. According to his plea agreement, on January 6, 2018, Peter, a convicted felon, possessed a Smith and Wesson .223 caliber AR-15 style semi-automatic assault rifle with a 30-round high capacity magazine. The rifle was loaded with approximately seven rounds of ammunition. Peter also possessed a box containing an additional 62 rounds of ammunition for a separate firearm. According to court documents, law enforcement officers arrested Peter after someone placed a call to 911 and told the dispatcher that a person was threatening the occupants of a house with a rifle.
On September 13, 2018, a federal grand jury indicted Peter charging him with one count of being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g)(1). Peter pleaded guilty to the charge.
In addition to the prison term, Judge White ordered Peter to serve a three-year term of supervised release to begin at the conclusion of his prison term. Peter has been in custody since his arrest and will begin serving his prison term immediately.
Special Assistant United States Attorney Samantha Schott is prosecuting the case with the assistance of Jessica Rodriguez Gonzalez. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Richmond Police Department.
Convicted Felon Pleads Guilty to Possessing Am-15 Rifle and AmmunitionRead the Press Release
BOSTON – A Holyoke man pleaded guilty today in federal court in Springfield to illegally possessing an AM-15 rifle and ammunition.
Akeem Castro, 26, pleaded guilty to one count of possession of a firearm and ammunition by a convicted felon. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Aug. 8, 2019. Castro was arrested and charged in January 2018 and has been in custody since.
On March 7, 2017, Castro possessed an Anderson Manufacturing AM-15 assault-style rifle and 34 rounds of ammunition. Castro is prohibited from owning a firearm due to a prior felony conviction. Castro admitted that, on that date, he sold the firearm for $1,800 to a government witness in a parking lot in Chicopee.
The charge provides for sentence of no greater than 10 years in prison, a maximum of three years of supervised release and a maximum fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Acting Springfield Police Commissioner Cheryl Clapprood; and Holyoke Police Chief Manny Febo made the announcement. Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office is prosecuting the case.
Ceremony Honors Western Pennsylvania Victims Rights’ AdvocatesRead the Press Release
PITTSBURGH, PA – The United States Attorney’s Office for the Western District of Pennsylvania honored seven individuals and a task force for their exceptional service to victims of crime during the annual Victim Advocate Recognition Ceremony in the Joseph F. Weis Jr. United States Courthouse on Friday, April 26.
"Whether a victim of sexual assault, stalking, hate crimes, domestic violence, elder abuse or financial fraud, all crime victims need and deserve to be protected and comforted as much as possible, and to be assured that those who caused their suffering will be brought to justice," said U.S. Attorney Scott W. Brady. "The people we are recognizing have made an impact in the lives of crime victims, and they continue to work to ensure that every victim is empowered to recover and become a survivor."
In 1981, President Ronald Reagan proclaimed National Crime Victims’ Rights Week to bring greater sensitivity to the needs and rights of victims of crime. Each April, the office joins U.S. Attorney’s Offices across the country to observe National Crime Victims’ Rights Week by honoring victims of crime and those who advocate on their behalf. In addition, the offices participate in events to bring awareness to the services available to victims. This theme of this year’s observance is "Honoring Our Past: Creating Hope for Our Future."
The U.S. Attorney’s Award for Dedication and Extraordinary Contributions in the Service of Victims was presented to Assistant U.S. Attorney Jessica Smolar and Assistant U.S. Attorney Soo C. Song.
AUSA Smolar has prosecuted multiple child exploitation cases and more than 15 human trafficking cases in conjunction with the Department of Justice, Federal Bureau of Investigation, Department of Homeland Security, United States Postal Inspection Service, Pennsylvania Office of the Attorney General, Allegheny County Police and Pennsylvania State Police, among other law enforcement agencies. Ms. Smolar served as the Project Safe Child (PSC) Coordinator and Human Trafficking point of contact for approximately eight years. Through her work, she has brought help, hope and healing to crime victims and their families.
AUSA Song’s work with victims is long and varied. Over her 15 years with the office, she helped to establish the Veterans Treatment Court, one of the first federal courts of its kind. As the district’s Gang Coordinator, she charged more than 60 defendants in a series of cases that helped to clear unsolved homicides and reduce violence in Mon Valley communities. During the timeframe that she led the Crimes Against Children Task Force for Western Pennsylvania, the district’s child exploitation prosecutions constituted nearly one in 10 of criminal cases filed. She served for a time as the office’s Violence Against Women Act coordinator and organized a Victim/Witness Roundtable for Western Pennsylvania local, state and federal victim/witness advocates. She strengthened protocols for crime victim notification, advocacy and restitution in federal court, including corporate victims of cyber intrusions.
U.S. Attorney Brady also recognized Ana Valero-Silva of the United States Attorney’s Office for her work as a legal assistant in the criminal division and her invaluable support in child exploitation cases. Ms. Valero-Silva performed all of her responsibilities on these difficult cases with a patient manner, a calm demeanor, and excellent organization skills.
Members of the Federal Bureau of Investigation’s Opioid Task Force (WPOTF) were honored for their work to disrupt and dismantle drug trafficking organizations that have caused western Pennsylvania to have the second highest rate of opioid-related deaths in the United States. The WPOTF is comprised of local, state and federal participants who work in partnership to target all levels of distribution routes, including upper- and mid-level local opioid suppliers, interstate opioid traffickers, postal/mail opioid traffickers and internet-based opioid traffickers. Since its formation in 2016, the WPOTF has netted 43 Federal Indictments, recovered over 9.5 kilos of fentanyl and 3.4 kilos of cocaine, and seized 107 guns.
Retired Pennsylvania State Trooper Mike Warfield was honored for his work as a DEA Task Force Officer, for helping the office build successful cases against violent drug organizations. His efforts led in part to the dismantlement of the Samuel and Wayne McCracken heroin and fentanyl trafficking organizations, the Aaron Taylor cocaine network, the Christian Stevens heroin trafficking organization, a notorious Beaver County heroin distribution ring. Most notable was his work on the Jelani Solomon violent drug trafficking organization, in which Solomon hired Claron Hanner to murder the father of a cooperating witness. Mr. Warfield’s efforts led to the convictions of Solomon and Hanner for murder, and Solomon’s life sentence.
Lorraine M. Bittner, Chief Legal Officer for the Women’s Center & Shelter of Greater Pittsburgh, was recognized for providing direct legal representation for domestic violence survivors for 40 years. Women’s Center and Shelter provides specialized care and support for women who have experienced all types of intimate partner violence from physical to emotional through Emergency Shelter, Legal Advocacy, a 24-Hour Hotline, Support Groups and more.
Two advocates for the Center for Victims - Patrice El-Waaga, Director of Advocacy and Court Services, and Anita White, a Counselor and Advocate, who works primarily with the elderly – were recognized for providing stellar support in myriad federal cases, working side by side with the USAO’s Victim/Witness Coordinator to ensure victims were kept updated on the status of their case, received resources and referrals, and were provided support during court hearings. Center for Victims is the largest, most comprehensive provider of services in Pennsylvania, providing advocacy and education for victims.
Cameron Woman Sentenced to 18 Years for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Cameron, Mo., woman has been sentenced in federal court for her role in a conspiracy to distribute methamphetamine.
Jalie J. Brinlee, 29, was sentenced by U.S. Chief District Judge Beth Phillips on Monday, April 29, to 18 years in federal prison without parole.
On Jan. 4, 2019, Brinlee pleaded guilty to participating in a drug-trafficking conspiracy and to possessing a firearm in furtherance of a drug-trafficking crime. Brinlee is among five defendants who have pleaded guilty in this case. Co-defendant Robert J. Keegan, 27, of Harrisonville, Mo., was sentenced on Wednesday, April 24, to 18 years in federal prison without parole. Co-defendants Benjamin W. Clark, 27, and Felicia C. Ward, 23, both of Cameron, and Frank E. Hundley, 34, of Kansas City, Mo.; have pleaded guilty and await sentencing.
All five of the defendants admitted they participated in a conspiracy to distribute 500 grams or more of methamphetamine from January to May 24, 2017. Clark and Brinlee purchased methamphetamine from various suppliers and distributed it to customers in Cameron, Kansas City and elsewhere.
On May 12, 2017, Keegan was stopped by law enforcement and was found in possession of a Hi-point .40-caliber handgun and a duffel bag containing approximately 3.8 kilograms of methamphetamine.
On May 24, 2017, a trooper with the Missouri State Highway Patrol stopped Ward, who was carrying a Glock 9mm handgun in her purse. Ward had retrieved the handgun from the vehicle where Clark and Brinlee were located, and Brinlee admitted to possessing the firearm prior to transferring it to Ward. Also found in Ward's purse was approximately one kilogram of methamphetamine, which Brinlee also admitted to possessing at the time of the traffic stop.
This case is being prosecuted by Assistant U.S. Attorney Patrick Edwards. It was investigated by the Drug Enforcement Administration, the Belton, Mo., Police Department, the Independence, Mo., Police Department and the Jackson County Drug Task Force.
California Man Sentenced for $447,000 Identity Theft, Bank Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A California man was sentenced in federal court today for his role in a scheme to steal tax refund checks from the mail and cash them at banks by using fake driver’s licenses.
Sharieff A. Sylvester, 27, of Moreno Valley, Calif., was sentenced by U.S. Chief District Judge Beth Phillips to three years in federal prison without parole. The court also ordered Sylvester to pay $20,416 in restitution.
On Jan. 4, 2019, Sylvester pleaded guilty to bank fraud and aggravated identity theft. In April of 2016, Sylvester and several others traveled through Colorado and Kansas into Missouri in a scheme to defraud Academy Bank using tax refund checks stolen from the mail and fake driver’s licenses. Using fraudulent identification documents, they presented the stolen checks in order to open bank accounts and withdraw funds at various branches of Academy Bank in Colorado, Kansas, and Missouri.
The conspiracy defrauded Academy Bank and the U.S. Treasury of a total of $447,517.
For example, on April 22, 2016, Sylvester used a counterfeit driver’s license to pass a stolen tax refund check at an Academy Bank branch in Parker, Colo. Sylvester presented the stolen check for $3,838 as a deposit into a newly created bank account. Sylvester then withdrew $3,808, leaving only $30 in the account.
Sylvester cashed six stolen tax refund checks in this manner, totaling $20,416. Each of these transactions was captured on bank security video, including a transaction at an Academy Bank in St. Joseph, Mo.
On April 24, 2016, police officers in Denver, Colo., recovered 19 counterfeit California driver’s licenses, including one bearing a photo of Sylvester and the name of the victim whose stolen check was passed two days earlier in Parker, from a room at the Renaissance Hotel.
Two co-defendants have pleaded guilty and await sentencing. Mistie Smith, 29, of Moreno Valley, Calif., pleaded guilty on Jan. 25, 2019, to conspiracy to commit bank fraud, bank fraud, and identity theft. Joseph R. Hooks, 26, of Bloomington, Calif., pleaded guilty on Jan. 25, 2019, to bank fraud and aggravated identity theft.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by the U.S. Postal Inspection Service, IRS-Criminal Investigation, and the U.S. Treasury Inspector General for Tax Administration.
California Man Sentenced to 140 Months in Prison for Supplying Methamphetamine to Boston-Based Drug RingRead the Press Release
BOSTON – A California man was sentenced yesterday in federal court in Boston for distributing methamphetamine from California to Massachusetts.
Christopher Halfond, 37, was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to 140 months in federal prison and five years of supervised release. In April 2018, Halfond pleaded guilty to conspiracy to distribute methamphetamine and distribution of methamphetamine.
After a two-year investigation, Halfond and 10 others from Massachusetts and California were indicted in 2016 on methamphetamine distribution and money laundering charges. Beginning in at least 2013, the defendants participated in a conspiracy to transport sizeable quantities of methamphetamine from San Diego, Calif., to Massachusetts, where it was distributed in the greater Boston area. Proceeds from the drug sales were then transported and/or transferred back to California and laundered in various ways.
Halfond, who was previously from Massachusetts, agreed to send packages containing methamphetamine from California back to Massachusetts. In January 2016, agents learned that Halfond had sent a methamphetamine package to Massachusetts. After the package was delivered, agents executed a search warrant and seized the package, which contained approximately 434 grams of 95% pure methamphetamine.
Halfond is the first of the defendants to be sentenced. The remaining defendants have each pleaded guilty to various charges and are awaiting sentencing.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; William Ferrara, Director of Field Operations of U.S. Customs and Border Protection; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Gross made the announcement. The Massachusetts Department of Correction; Norfolk County Sherriff’s Office; Suffolk County Sheriff’s Office; the Reading, Watertown, Quincy, Chelsea, Braintree, Peabody, Waltham, and Woburn Police Departments; and Connecticut State Police assisted with the investigation. Assistant U.S. Attorneys James E. Arnold and Jared C. Dolan of Lelling’s Narcotics & Money Laundering Unit are prosecuting the cases.
Biloxi Man Sentenced for Conspiracy to Possess Marijuana with Intent to Distribute and Possession of a Firearm by a Convicted FelonRead the Press Release
Gulfport, Miss. – Kendell Jerome Smith, 35, of Biloxi, was sentenced today by U.S. District Judge Sul Ozerden to a total of 60 months in federal prison, followed by three years of supervised release, for conspiracy to possess marijuana with intent to distribute and possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent-in-Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Smith was also ordered to pay a $5,000 fine and forfeit a firearm and ammunition that he had possessed. Smith pled guilty before Judge Ozerden on January 31, 2019.
In 2017, in the Biloxi Police Department received community complaints about alleged drug activity at a house occupied by Smith and his girlfriend. In July 2017, detectives conducted surveillance on the house, and on July 28, 2017, detectives conducted a traffic stop on Smith and found about 30 grams of fresh marijuana. A search warrant was obtained, and a search of the home shared by Smith and his girlfriend revealed several baggies containing marijuana, other items indicating drug trafficking activity, and $2,514 in cash. Two loaded handguns were also found.
Further investigation revealed that Smith’s participation in a conspiracy to possess marijuana with intent to distribute lasted from July 2017 to July 2018. Smith was previously convicted of a felony drug offense, and was on state parole at the time of his arrest in July 2017.
U.S. Attorney Hurst commended the coordinated investigation by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Biloxi Police Department. The case was prosecuted by Assistant U.S. Attorney Stan Harris.
Arizona Man and Israeli Woman Charged in Connection with Providing Shadow Banking Services to Cryptocurrency ExchangesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Jonathan D. Larsen, Acting Special Agent in Charge of the New York Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), announced the arrest today of REGINALD FOWLER on charges of bank fraud and operating an unlicensed money transmitting business. Bank fraud charges were also unsealed against co-conspirator RAVID YOSEF, who remains at large. FOWLER and YOSEF, who worked for several related companies that provided fiat-currency banking services to various cryptocurrency exchanges (the “Crypto Companies”), allegedly participated in a conspiracy in which FOWLER made numerous false and misleading statements to banks to open bank accounts that were used to receive deposits from individuals purchasing cryptocurrency, and in which FOWLER and YOSEF falsified electronic wire payment instructions to conceal the true nature of a voluminous cryptocurrency exchange business. Hundreds of millions of dollars flowed through the Crypto Companies’ accounts from banks located across the globe. FOWLER will be presented today in federal court in Phoenix, Arizona. The case is assigned to U.S. District Judge Andrew L. Carter Jr.
U.S. Attorney Geoffrey S. Berman said: “Reginald Fowler and Ravid Yosef allegedly ran a shadow bank that processed hundreds of millions of dollars of unregulated transactions on behalf of numerous cryptocurrency exchanges. Their organization allegedly skirted the anti-money laundering safeguards required of licensed institutions that ensure the U.S. financial system is not used for criminal purposes, and did so through lies and deceit. Thanks to the investigative work of the FBI and the IRS-CI, they will be prosecuted for their actions.”
FBI Assistant Director William F. Sweeney Jr. said: “Lying to banks and skirting the regulations put in place by the banking industry is a violation of federal law, a crime both Fowler and Yosef are charged with today. Taking it one step further, as alleged, Fowler himself directed the ebb and flow of significant amounts of money to and from these various bank accounts, despite the fact that he was not licensed to do so. May this be a reminder to all that there are consequences to engaging in fraudulent behavior and risky business practices.”
IRS-CI Acting Special Agent in Charge Jonathan D. Larsen said: “As this indictment shows, IRS-CI will continue to follow the money, no matter if it's virtual currency, to bring criminals to justice. This should serve as a warning to cyber-criminals who think they can hide behind virtual currency that IRS-CI is fully committed to unraveling these schemes.”
According to the allegations in the Indictment unsealed today[1]:
In or about 2018, REGINALD FOWLER, RAVID YOSEF, and others operated the Crypto Companies, and FOWLER opened and maintained bank accounts at various banks around the world on behalf of the Crypto Companies. One of the Crypto Companies markets itself as a company that allows clients to deposit and withdraw government-backed, or “fiat,” currency to numerous crypto exchanges, which are platforms where people can buy and sell cryptocurrency or “virtual currency.” Users of one particular crypto exchange (“Exchange-1”) deposited government-backed currency into a bank account of the Crypto Companies (“Account-1”) that was opened and maintained by FOWLER at a specific international bank (“Bank-1”). Although Exchange-1 advertised itself as providing required “know your customer” and anti-money laundering verification services in connection with Exchange-1’s platform, this was false with respect to the shadow banking services provided by FOWLER and YOSEF.
As described in the Indictment, FOWLER and YOSEF conspired to, and did, misrepresent the nature of the Crypto Companies’ business and falsely stated to Bank-1 that Account-1 would be used to process real estate investments. These misrepresentations also appeared on wire transfer instructions sent out from bank accounts opened and maintained by FOWLER and YOSEF, among others, on behalf of the Crypto Companies. Records from Bank-1 reveal that dozens of individuals from various countries wired millions of dollars into Account-1, and, at the same time, Account-1 also wired millions of dollars to other individuals and companies. Even though FOWLER was receiving and directing these monetary transactions, neither he nor any of the Crypto Companies were ever licensed as a money transmitting business, as required by federal law.
* * *
FOWLER, 60, of Chandler, Arizona, and YOSEF, 36, of Tel Aviv, Israel, are each charged with one count of bank fraud and one count of conspiracy to commit bank fraud, each of which carries a maximum sentence of 30 years in prison. FOWLER is also charged with one count of operating an unlicensed money transmitting business and one count of conspiracy to do the same, each of which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of Special Agents from the FBI New York Money Laundering Investigations Squad and Special Agents from the IRS-CI.
The prosecution of this case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Sheb Swett, David Zhou, and Jessica Fender are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Ada Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Branden Ashley Rowell, age 37, of Ada, Oklahoma, entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The Indictment alleges that on or about June 8, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Ada Police Department, the District 22 Drug and Violent Crime Task Force, and the Oklahoma Bureau of Narcotics and Dangerous Drugs.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Jarrod Leaman represented the United States.
A Dozen Western Washington Indian Tribes Awarded Grants to Improve Services for Victims of CrimeRead the Press Release
A dozen tribes in the Western District of Washington have been awarded nearly $6 million in Department of Justice grants to improve their services for victims of crime, announced U.S. Attorney Brian T. Moran. The grants range from $85,000 for the Hoh Tribe to $779,488 for the Squaxin Island Tribe based on applications submitted by the tribes.
“These grant awards cover needs identified by the tribes themselves,” said U.S. Attorney Moran. “Whether it is providing emergency services for families in crisis, providing skilled interviewers for child abuse victims or providing a secure domestic violence shelter, each of these projects reflects the needs and culture of our tribal partners.”
“American Indian and Alaska Native communities face extensive public safety challenges, but through creative approaches that combine traditional methods with innovative solutions, they are demonstrating their determination to meet the needs of victims in their communities,” said Principal Deputy Assistant Attorney General Matt M. Dummermuth. “These grants, part of historic levels of funding awarded by the Department of Justice to American Indian and Alaska Native communities, will provide significant resources to bring critical services to those who suffer the effects of crime and violence.”
The twelve grants to Western Washington tribes include:
- Squaxin Island Tribe - $779,488 – to expand existing services and outreach to victims of domestic violence, sexual assault, stalking, sex trafficking and dating violence.
- Skokomish Tribe - $446,234 – to expand current programs to better serve elder victims.
- Jamestown S’Klallam Tribe - $420,119 – to establish a satellite Children’s Advocacy Center to increase accessibility to culturally relevant services including trained interviewers.
- Nooksack Tribe - $677,152 – to expand existing services with a needs assessment and strategic plan to implement a responsive Victim Services Program for victims of domestic violence, sexual assault, dating violence and elder abuse and neglect.
- Lummi Nation - $574,361 – to maintain a fully staffed, safe, secure and confidential shelter serving victims of domestic violence, sexual assault and elder abuse.
- Muckleshoot Tribe - $650,000 – to expand victim services with additional trained staff for crisis counseling and referrals to trauma counseling.
- Quinault Nation - $168,631 – to expand services provided by the Healthy Families Program with a satellite office and services to victims in crisis.
- Chehalis Confederated Tribes – $719,741 – to create a Crime Victims Service Trauma Center where victims can receive services in a centralized and non-threatening facility.
- Hoh Tribe - $85,000 – to conduct a community needs assessment and complete a strategic plan with the goal of developing a Victim Services Program.
- Lower Elwha Klallam Tribe - $556,556 – to serve the needs of all crime victims with particular focus on providing pediatric forensic exams for child victims.
- Puyallup Tribe - $407,408 – to expand existing services by strengthening the continuum of care for homeless crime victims and or victims with alcohol and substance abuse issues.
- Port Gamble S’Klallam Tribe - $420,119 – to support victims of crime with a focus on service to victims with disabilities and those who have been victimized multiple times, using services that are trauma-informed and culturally rooted in tradition.
“American Indian and Alaska Native crime victims continue to face challenges in accessing vital services and resources needed to help survivors address their trauma and navigate a complex system,” said OVC Director Darlene Hutchinson. “The Justice Department has made it a priority to partner with tribes to help victims and their families rebuild their lives in the aftermath of violence.”
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership, grants and resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
9th Person Arrested in Investigations into ID Theft, Bank Fraud ConspiraciesRead the Press Release
PROVIDENCE, RI – The ninth of ten individuals charged in a series of indictments, informations, and criminal complaints filed in U.S. District Court in Providence for their alleged participation in conspiracies and schemes to steal and use the personal identifying information of others to defraud banks, finance companies, car dealerships and retailers, has been arrested and has been ordered detained in federal custody.
Angel L. Morales, 51, of Bronx, New York, traveled to the Dominican Republic in September 2018, shortly after federal agents executed search warrants at the New Jersey apartment of one of his alleged co-conspirators. Morales returned to the United States on March 30, 2019, and was arrested in Fort Lauderdale, Fla., after arriving on a flight from the Dominican Republic. Morales was arraigned in U.S. District Court in Providence on Monday and ordered detained by U.S. District Court Magistrate Judge Patricia A. Sullivan.
Morales is among six individuals named in a 32-count superseding indictment returned on February 6, 2019. The indictment charges Morales with conspiracy to commit bank fraud, aggravated identity theft, and three counts of bank fraud. Morales is the fifth person named in the indictment to be arrested. An arrest warrant has been issued for the sixth person.
In addition to the individuals named in the superseding indictment, four individuals have been convicted in federal court for their roles in various related conspiracies and fraud schemes.
According to court documents, investigations led by the U.S. Secret Service with the assistance of the Social Security Administration, Office of the Inspector General/Office of Investigations; United States Postal Inspection Service; the East Providence, Warwick, and Pawtucket, R.I. Police Departments; Seekonk and Mansfield, MA, Police Departments; and the Rhode Island State Police, have determined that the defendants, most known to one another, allegedly participated in various conspiracies and schemes to steal and use individuals’ personal identifying information, including Social Security numbers, to defraud banks, credit unions, finance companies, and retailers of hundreds of thousands of dollars in Rhode Island, Massachusetts, Connecticut, and Pennsylvania.
Also named in the 32-count superseding indictment are:
- Octavio Andres Difo-Castro, 28, of Brooklyn, N.Y., who has been detained since his arrest on August 9, 2018. He was arraigned on the superseding indictment on February 19, 2019, and is awaiting trial;
- Patricia A. Peralta, 28, of Paterson, N.J., who was arrested on August 9, 2018, and released on unsecured bond on August 14, 2018. She was arraigned on the superseding indictment on February 15, 2019, and is awaiting trial;
- Yenesia Pujols, 47, of Providence, R.I., who was arrested on February 8, 2019, and released on unsecured bond, and is awaiting trial;
- Yafira Rodriguez, 26, of New Britain, Conn., who was arrested on February 26, 2019, and released on unsecured bond is awaiting trial; and
- An arrest warrant has been issued for Israel Arana Ruiz Velasco, 45, address unknown.
Other individuals charged as a result of the investigation include:
- Reynaldo Martinez, 25, of Providence, who pleaded guilty on November 8, 2017, to four counts of aggravated identity theft, two counts of access fraud, and one count each of bank fraud, conspiracy to commit fraud, attempted access fraud, and interstate transportation of stolen goods. Martinez was sentenced by U.S. District Court Judge John J. McConnell, Jr., on January 25, 2018, to 48 months in federal prison and ordered to pay restitution totaling $38,126.62 to businesses he defrauded;
- Jason McDonald, 38, of Attleboro, MA, who pleaded guilty on March 29, 2018, to conspiracy, attempted bank fraud, fraudulent use of a Social Security number, and aggravated identity theft. Martinez was sentenced by U.S. District Court Judge John J. McConnell, Jr., on July 24, 2018, to 39 months in federal prison and ordered to pay restitution totaling $29,825 to businesses he defrauded;
- Donald Wicklund, 33, of Pawtucket, who pleaded guilty on April 12, 2018, to two counts of wire fraud, five counts of fraudulent use of a Social Security Number, five counts of aggravated identity theft and three counts of bank fraud. Wicklund was sentenced by U.S. District Court Judge John J. McConnell, Jr., on January 7, 2019, to 24 months and one day in federal prison and ordered to pay restitution totaling $80,799.60 to businesses he defrauded; and
- Jeffry Rodriguez, 37, of Providence, who pleaded guilty on September 20, 2018, to conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. He is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on June 11, 2019.
The investigations and charges brought in these cases are announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the U.S. Secret Service Stephen Marks, and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
Indictments, criminal complaints, and informations are merely accusations. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant United States Attorney William J. Ferland.
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29 April 2019
Welsh man sentenced to 115 months in prison for distributing marijuana, cocaineRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced today that Damien Guidry, 38, of Welsh, Louisiana, was sentenced to nine years and seven months in prison by U.S. District Judge Robert R. Summerhays for distributing marijuana and cocaine. He was also sentenced to five years of supervised release.
Guidry shipped 14 pounds of marijuana from an individual in California to an address in Iota, Louisiana. Law enforcement agents observed Guidry leave the residence with the box containing the marijuana on January 26, 2016. They also observed the box in the back of a truck as he left the residence. In a second incident, Guidry asked someone on November 16, 2016 to travel with him to the Houston, Texas, area to obtain 2 kilograms of cocaine. The other individual was returning to Louisiana two days later in Guidry’s truck when law enforcement agents stopped the vehicle. They searched the truck and found nearly 2 kilograms of cocaine. Guidry pleaded guilty to federal charges on November 30, 2018 to one count of possession with intent to distribute marijuana and one count of conspiracy to distribute and possess with intent to distribute cocaine.
The FBI, U.S. Postal Inspection Service, Louisiana State Police, Acadia Parish Sheriff’s Office and Calcasieu Parish Combined Anti-Drug Team conducted the investigation. Assistant U.S. Attorney John Luke Walker is prosecuting the case.
Virginia Online Gamer Sentenced to 18 Months in Federal Prison After He Pleads Guilty to Sending Threatening Messages to Employees of an Online Gaming Company Based in MarylandRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Michael Dunaway, age 59, of Hamilton, Virginia, today to 18 months in federal prison, after Dunaway pleaded guilty to sending messages threatening acts of violence to employees of an online gaming company based in Lutherville, Maryland.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to his plea agreement, an online gaming company based in Lutherville, Maryland launched a combat strategy game entitled “DomiNations.” DomiNations is a massive multiplayer online game in which players build a base nation containing different types of buildings and resources and build and train an army to defend the nation and attack other nations to collect resources. Players can enhance their playing experience by purchasing certain resources.
In early April 2018, Dunaway contacted the online gaming company through the DomiNations game’s help and service application to address issues he had experienced while playing the game. Starting on April 17, 2018, however, Dunaway changed his behavior from complaining about the game to threatening acts of violence against employees at the company. Between April 17 and July 26, 2018, Dunaway sent at least 14 messages threatening to kill company employees or kill others. The threatening communications resulted in a substantial disruption of the company’s business functions and services.
United States Attorney Robert K. Hur commended the FBI and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys John W. Sippel, Jr. and Michael Goldsticker, who prosecuted the case.
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Union County, New Jersey, Man Admits Bribing Mail Carriers to Steal Credit CardsRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a scheme to bribe mail carriers to steal credit cards from the mail, U.S. Attorney Craig Carpenito announced.
Olagoke Araromi, 22, of Union, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to a three-count information charging him with bribery of U.S. Postal Service mail carriers, bank fraud and aggravated identity theft.
According to documents filed in the case and statements made in court:
Araromi and Moussa Dagno, 24, of Harrison, New Jersey, recruited at least a half dozen U.S. Postal Service (USPS) mail carriers and employees to steal credit cards from the mail in exchange for cash bribes, typically $100 per stolen card. Once Araromi had taken possession of the stolen credit cards and activated them, he and Dagno would use the cards to purchase high-end electronics and clothing at various retail stores throughout New Jersey. In February, 2018 law enforcement seized six laptops and a smartphone from the Harrison residence shared by Araromi and Dagno at that time, all of which had been purchased with the stolen credit cards.
Several of the USPS employees who accepted bribes from Araromi and Dagno have already pleaded guilty to bribery charges, including: former mail carriers Zenobia Gilmer, Ayesha Troztz and Kyanne Costley, who had delivery routes in Mt. Arlington, East Orange and Elizabeth, New Jersey; and Jennel Williams, who formerly worked as a clerk in the Newark Main Post Office. All four admitted to stealing credit cards from the mail and delivering them to Araromi or Dagno in exchange for payments, and all are awaiting sentencing. A fifth mail carrier from Jersey City, Jacquan Miller, has been charged by complaint for his role in the scheme. On April 8, 2019, Dagno pleaded guilty to the same charges to which Araromi pleaded guilty today, and is awaiting sentencing.
The bribery charge to which Araromi pleaded guilty carries a maximum potential penalty of 15 years in prison; the bank fraud charge carries a maximum penalty of 30 years in prison. The aggravated identity theft charge carries a mandatory sentence of two years in prison which must be served consecutively to any sentence Araromi receives on the bribery and bank fraud charges. The bank fraud charge carries a maximum potential fine of $1 million; the maximum potential fine for each of the bribery and the aggravated identity theft charge is $250,000. Sentencing is currently scheduled for Sept. 9, 2019.U.S. Attorney Carpenito credited special agents with the USPS Office of Inspector General, under the direction of Special Agent in Charge Matthew Modaffferi, Northeast Area Field Office, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Jihee G. Suh of the U.S. Attorney’s Special Prosecutions Division in Newark.
The charges and allegations against Jacquan Miller are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense Counsel: Anthony J. Iacullo Esq. & Joshua Reinitz Esq., Nutley, New Jersey
U.S. Officials Participate in Bilateral Meetings with Officials from Japan, South KoreaRead the Press Release
Leaders of the antitrust agencies of the United States this past week participated in bilateral meetings in Tokyo, Japan, and Seoul, Korea. Deputy Assistant Attorneys General Roger Alford and Richard Powers, together with Commissioner Christine S. Wilson of the U.S. Federal Trade Commission, participated in high level meetings with Chairman Kazuyuki Sugimoto and other senior officials from the Japan Fair Trade Commission (JFTC) on April 25 and senior officials from the Korea Fair Trade Commission (KFTC) on April 26. Commissioner Wilson met separately with officials from Japan’s Ministry of Economy, Trade, and Industry regarding technology and digital platforms.
The discussions covered a wide range of topics, including recent enforcement developments, antitrust policy, digital markets, and international cooperation, including the new Framework on Competition Agency Procedures (CAP) adopted by the International Competition Network (ICN) earlier this month. The purpose of the meetings was to reinforce ties of cooperation in light of the increasing internationalization of antitrust enforcement.
“These bilateral meetings are a testament to the depth and strength of our relationships with our global partners, and our joint interest in sound antitrust said Deputy Assistant Attorney General Roger Alford. “Given the importance of our economic ties with Japan and Korea and our shared interests in consumer welfare and robust competition, we are incredibly fortunate to have such close and productive relationships with both the JFTC and the KFTC.”
“Our meetings with the JFTC and KFTC reflect the continued importance of developing broad and deep relationship with antitrust enforcers around the world,” said Commissioner Christine Wilson. “We welcome the opportunity to have exchanges with our counterpart agencies in Japan and Korea on important issues regarding technology that are the subject of national and international debate.”
Deputy Assistant Attorneys General Alford and Powers and Commissioner Wilson also participated in roundtable briefings at the American Chambers of Commerce in Japan and in Korea. Deputy Assistant Attorneys General Alford and Powers also met separately with officials from Korea’s Ministry of Justice and the Supreme Prosecutor’s Office regarding cartel enforcement.
Two Sioux Falls Men Charged with Conspiracy to Distribute CocaineRead the Press Release
United States Attorney Ron Parsons announced that two Sioux Falls, South Dakota, men have been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Juan Antonio Garcia, Jr., age 32, and Byron Alexander Perez, a/k/a Kelvin Aquino, age 34, were indicted on April 2, 2019. Garcia appeared before U.S. Magistrate Judge Veronica L. Duffy on April 10, 2019, and Perez appeared before Judge Duffy on April 24, 2019. They both pled not guilty to the Indictment during their arraignments.
The maximum penalty upon conviction is up to 40 years in federal prison and/or a $5 million fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on beginning at an unknown date and continuing to on or about January 7, 2019, both Garcia and Perez knowingly and intentionally combined, conspired, confederated, and agreed together, and with others, to distribute 500 grams or more of cocaine, a Schedule II controlled substance.
The charge is merely an accusation and Garcia and Perez are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Drug Enforcement Administration. Special Assistant U.S. Attorney Tamara P. Nash is prosecuting the case.
Both Garcia and Perez were remanded to the custody of the U.S. Marshals Service pending trial, which has been set for June 18, 2019.
Troy Man Charged with Intending to Distribute Crack CocaineRead the Press Release
ALBANY, NEW YORK – Melvin Nelson, age 39, of Troy, New York, was arraigned on Friday on an indictment charging him with possessing and intending to distribute crack cocaine.
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).
According to the indictment, on June 26, 2018, Nelson possessed and intended to distribute more than 28 grams of crack cocaine. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
On Friday, April 26, Nelson appeared before United States Magistrate Judge Christian F. Hummel, who set conditions for Nelson’s release.
If convicted, Nelson faces a minimum of 5 years in prison, a term of post-release supervision of at least 4 years, and a fine of up to $5 million. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Troy Police Department. This case is being prosecuted by Assistant U.S. Attorneys Ashlyn Miranda and Alicia Suarez.
Three Men Indicted on Armed Robbery SpreeRead the Press Release
St. Louis, MO – Jalon Moore, 22, of Saint Louis, Larry Rhines, 22, of Collinsville, Illinois, and Garry Johnson, 21, of Saint Louis, were charged last Thursday for their respective roles in a string of armed robberies. The indictment was unsealed this morning. In it, the three men are charged with robbery and firearms conspiracies, as well as the robberies themselves and the use of firearms to commit each of those robberies.
According to the indictment, Moore, Rhines, and/or Johnson were responsible for robbing the following businesses on the following dates:
- Mack Bar and Grill located at 4615 Macklind, St. Louis, Missouri on January 9, 2019;
- Jimmy John’s located at 6459 Chippewa Street, St. Louis, Missouri on February 9, 2019;
- Subway located at 1151 South Kingshighway Boulevard, St. Louis, Missouri on February 17, 2019;
- Panda Express located at 4400 Hampton Avenue, St. Louis, Missouri on March 18, 2019; and
- Sprint located at 5441 Hampton Avenue, St. Louis, Missouri on March 21, 2019.
Defendant Rhines was previously charged on April 16, 2019, by a federal grand jury sitting in the Southern District of Illinois for similar crimes arising from armed robberies of Sprint at 105 Frey Lane, Fairview Heights, Illinois, on March 9, 2019; Marco’s Pizza at 108 St. Louis Road, in Collinsville, Illinois, on March 28, 2019; and the GCS Credit Union, 1502 Vandalia Street, Collinsville, Illinois, on March 30, 2019. He has been ordered detained pending trial in that separate matter.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Following the unsealing of today’s indictment, United States Attorney Jeff Jensen stated, “I am pleased that, through the hard work of the investigative team, this crew’s armed crime spree is over. We now focus on the equally important task of holding each of them accountable for the actions charged in the indictment.”
"Even when criminals cover their faces with masks, they cannot hide from the long arm of the law and a vigilant public," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "Tips from everyday good citizens played a significant role in ending this violent armed robbery spree."
If convicted, the robbery conspiracy charge carries a maximum term of imprisonment of 20 years. The firearm conspiracy charge carries a 20-year maximum term of imprisonment. Each individual robbery charge carries a maximum term of imprisonment of 20 years. Each charge stemming from the defendants’ use of firearms in furtherance of the robberies carries a statutory minimum term of imprisonment of seven years up to life consecutive to any other sentence imposed. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Federal Bureau of Investigation; the Saint Louis Metropolitan Police Department; and the Saint Louis County Police Department, in coordination with the United States Attorney’s Office for the Southern District of Illinois; the Federal Bureau of Investigation-Springfield; and the Collinsville and Fairview Heights Police Departments.
Tahlequah Man Pleads Guilty to Methamphetamine Distribution, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that William Wayne Anderson, a/k/a "Buffalo", age 40, of Tahlequah, Oklahoma, entered a guilty plea to two counts of Possession with Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), each count punishable by imprisonment for up to 20 years and up to 30 years if the defendant has a prior conviction for a felony drug offense that has become final, up to a $1,000,000.00 fine, or both; and to Felon in Possession of Firearm and Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleges that on or about November 9, 2018, in the Eastern District of Oklahoma, the defendant, William Wayne Anderson, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment further alleges that on or about November 9, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate and foreign commerce.
The Indictment further alleges that on or about February 17, 2019, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Tahlequah Police Department, the District 27 Drug Task Force, and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Jarrod Leaman represented the United States.
Tahlequah Man Pleads Guilty to Firearm Possession in Furtherance of Drug Traffic CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Michael Lewis Killin, age 46, of Tahlequah, Oklahoma entered a guilty plea to Possession Of Firearm In Furtherance Of Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c), punishable by not less than 5 years imprisonment.
The Superseding Indictment alleges that on or about November 7, 2018, in the Eastern District of Oklahoma, the defendant, did knowingly possess a firearm, to wit: one (1) Strum, Ruger, and Co (Ruger), Model LC9, 9mm Luger caliber semi-automatic pistol, serial number 326-18055, in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States.
The charges arose from an investigation by the Tahlequah Police Department, the District 25 District Attorney’s Office, and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Jarrod Leaman represented the United States.
Statement from Attorney General William P. Barr on the Office of Personnel Management’s Published Final Rule for Compensatory Time Off for Religious ObservancesRead the Press Release
Attorney General William P. Barr today released the following statement on the publication of the Office of Personnel Management's Final Rule for Compensatory Time Off for Religious Observances:
"The federal government has been strengthened and enriched by the service of people of faith from the very beginning," Attorney General William P. Barr said. "American history has shown time and again that religious faith can promote good citizenship and the qualities that make for good government service. By offering more flexibility in employees’ work schedules, today's new rule treats Americans of faith with respect and recognizes that government can make legitimate accommodations while still serving the public. I applaud this effort to make the federal government a more tolerant and welcoming work environment and I am confident that it will yield positive results for years to come."
NOTE: The published Final Rule can be found here.