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25 April 2019
Wichita Man Sentenced on Gambling, Tax ChargesRead the Press Release
WICHITA, KAN. – Danny Chapman, 68, Wichita, Kan., was sentenced today to two years on supervised probation for operating a gambling business and failing to pay income taxes on the proceeds, U.S. Attorney Stephen McAllister said. In addition, Chapman agreed to forfeit more than $1.6 million in cash, as well as cars, jewelry and other items.
Chapman pleaded guilty to one count of operating an illegal gambling business and one count of tax evasion.
In his plea, Chapman admitted he worked as a sports bookmaker in the Wichita area and had at least five people working for him. Chapman and his subordinates took bets on sporting events from clients in their “book” of bettors and collected from clients who lost their bets. They arranged for clients to place bets through online gambling web sites that were created and hosted in Costa Rica. Chapman and subordinates kept a portion of the money they collected. The operation grossed as much as $2,000 in a single day.
Chapman admitted he failed to pay almost $345,000 in federal income taxes on his earnings from illegal gambling.
McAllister commended the FBI, IRS Criminal Investigation, Assistant U.S. Attorney Aaron Smith and Assistant U.S. Attorney Mona Furst for their work on the case.
Waterbury Cocaine Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ERNESTO LUIS DELGADO, also known as “Pancho,” 34, of Waterbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 120 months of imprisonment, followed by five years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, Delgado was a member of a drug trafficking organization in Waterbury that received kilogram-quantities of cocaine in the U.S. Mail from a source of supply in Puerto Rico, and then distributed the drug in the Waterbury area. Delgado and other then mailed the cash proceeds generated from the sale of the cocaine, at a rate of approximately $25,000 per kilogram, to their supplier in Puerto Rico. On July 15, 2017, investigators seized a parcel containing $100,000 in cash that Delgado had mailed at a post office in Waterbury.
Delgado was arrested on December 1, 2017. At the time of his arrest, he was in the process of receiving two parcels, each containing two kilograms of cocaine.
Delegado has been detained since his arrest. On January 28, 2019, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine.
On September 12, 2018, Judge Bolden sentenced Jose L. Rivera, 41, of Waterbury, to 60 months of imprisonment and four years of supervised release for his role in this cocaine trafficking ring.
This matter was investigated by the U.S. Postal Inspection Service, Drug Enforcement Administration and Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorney S. Dave Vatti.
Vermont Man Convicted of Procuring Naturalization Contrary to LawRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Hussien Noor Hussien, 56, of Burlington, Vermont, was convicted today following a three-day jury trial in U.S. District Court of personage of another in a naturalization proceeding, procuring naturalization contrary to law, and making a false statement on a passport application.
Court records and trial evidence revealed that in 2004, Hussien entered the United States as a refugee under the name Abukar Hassan Abdule. He entered with the wife and children of the true Abukar Hassan Abdule. In 2011, he applied for U.S. citizenship under the same name. He affirmed on his citizenship application and during an in-person citizenship interview in South Portland, Maine, that his name was Abukar Hassan Abdule. He ultimately was naturalized under the same name. After becoming a U.S. citizen, he applied for a U.S. passport under the name Abukar Hassan Abdule. In 2013, he filed in Vermont state court to legally change his name in the U.S. from Abukar Hassan Abdule to Hussien Noor Hussien, the name he was given at birth.
Hussien faces a maximum of five years in prison on the count of personage of another in a naturalization proceeding, up to ten years in prison on the other two counts, and a fine of up to $250,000 on each count. In addition, by law, due to the conviction for procuring naturalization contrary to law, the Court must revoke Hussien’s citizenship. Hussien will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Department of State, Diplomatic Security Service; the U.S. Department of Homeland Security, Homeland Security Investigations; and the U.S. Department of Housing and Urban Development, Office of Inspector General.
United States Files Complaint Seeking Forfeiture of Thousands “Fashion Dolls” That Infringe on Mattel’s “Barbie” CopyrightRead the Press Release
United States Attorney Erica MacDonald today announced the filing of a civil forfeiture complaint seeking to forfeit and recover approximately 21,852 fashion dolls that infringe a registered copyright owned by Mattel, Inc.
As alleged in the forfeiture complaint, on September 27, 2017, a shipping container aboard a Canadian National Railway train arrived into Ranier, Minnesota. The importer, Greenbrier International Inc. d/b/a Dollar Tree Inc., and Dollar Tree Distribution (“Greenbrier”) listed the contents of the shipping container as “Other Toys” on its manifest. U.S. Customs and Border Protection (CBP) officers examined the container and discovered the 21,852 toy “fashion dolls.” Representatives of Mattel reviewed photographs of the fashion dolls and confirmed that they were unauthorized copies that infringed the “CEO Barbie” doll head copyright owned by Mattel, Inc. Specifically, Mattel identified several features of the copyrighted CEO Barbie head sculpt infringed by the fashion dolls, including the shape of the mouth, nose and jaw.
As alleged in the forfeiture complaint, in 2016, Greenbrier attempted to import 13,296 Mermaid fashion dolls that were seized at the border by CBP for infringement of the CEO Barbie head sculpt. In both instances, the counterfeit dolls originated from the same exporter/shipper located in Hong Kong.
This case is being handled by the Asset Forfeiture Unit of the U.S. Attorney’s Office for the District of Minnesota, and was investigated by U.S. Customs and Border Protection.
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Uniontown Man Possessed Hundreds of Pornographic Images and Videos of ChildrenRead the Press Release
PITTSBURGH, PA - A resident of Uniontown, Pennsylvania pleaded guilty in federal court to a charge of possession of materials depicting the sexual exploitation of minors, United States Attorney Scott W. Brady announced today.
Jason A. Early, 41, pleaded guilty yesterday to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the Court was advised that in October 2017, Homeland Security Investigations was conducting an investigation into the Internet sharing of child pornography (CP). They obtained and executed a search warrant at the residence of Jason Early. A forensic review of his devices revealed 1,181 images and videos depicting CP, including images and videos of toddlers 2 or 3 years of age, as well as bondage. Early admitted to viewing CP through peer to peer programs and that there was CP stored on his MacBook and on two external hard drives.
Judge Ambrose scheduled sentencing for August 22, 2019. The law provides for a maximum sentence of not more than 10 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the Court continued Early’s bond.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations conducted the investigation leading to the Information in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.
Union Woman Receives 2 Years in Federal Prison for Fraudulent Tax Preparation ServiceRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Ashley E. Browning, age 32, of Union, South Carolina, was sentenced in federal court after pleading guilty to preparing and presenting false tax returns. United States District Judge Timothy M. Cain of Anderson sentenced Browning to 2 years in federal prison and ordered that she pay over $200,000 in restitution to the federal government.
Evidence presented to the court established that Browning prepared and filed, and assisted in preparing and filing of, multiple tax returns for customers in exchange for fees. Browning carried out this conduct from her home in Union County and also from the homes of her customers who resided in and around Union County. Browning repeatedly falsified information in returns she prepared in order to generate fraudulent refunds. For example, Browning repeatedly submitted false information about customers’ income, federal withholding, and educational expenses. Because of this pattern of falsification, the Government issued approximately $200,000 more in refunds than it would have if accurate and honest information had been submitted by Browning.
The case was investigated by agents with the Internal Revenue Service and the Union City Police Department. Assistant United States Attorney Bill Watkins of the Greenville office prosecuted the case.
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U.S. Military Dependant Convicted of Attempted Voluntary Manslaughter and Other Charges Stemming from an Assault of Several U.S. Airmen on a Military Base in JapanRead the Press Release
After a three day trial, a federal jury in Little Rock, Arkansas, convicted a man who was then-residing on the Misawa Air Base, a military base in Japan, of multiple charges, stemming from the assault of three U.S. Air Force airmen and resisting military police who attempted to restrain him.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Cody Hiland of the Eastern District of Arkansas and Colonel Kirk B. Stabler of the U.S. Air Force Office of Special Investigations made the announcement.
Rodrigo Pineda Gomez, 44, who was residing in Japan, was convicted of one count of attempted voluntary manslaughter, one count of assault with a dangerous weapon, three counts of assault by striking, beating, or wounding, one count of resisting a federal officer, and one count of making a false statement to law enforcement.
This verdict follows the earlier guilty plea on April 19 of Miguel Gomez, 21, the son of Rodrigo Gomez and himself a participant in the assault, to one count of assault by striking, beating or wounding.
The presiding judge, U.S. District Judge James Moody, Jr., has yet to set a sentencing date.
According to the superseding indictment and evidence presented at trial, on Dec. 31, 2016, on Misawa Air Base in Japan, the defendants, Rodrigo Gomez and his son, Miguel Gomez, assaulted three U.S. Air Force airmen. During the assault, defendant Rodrigo Gomez attempted to kill one of the airmen by attempting to snap his neck and stomping on his head repeatedly while he was on the ground. He subsequently resisted arrest after law enforcement arrived, and then later made a false statement about the incident. Co-defendant Miguel Gomez also assaulted one of the airmen. At the time of the assault, defendant Rodrigo Gomez was the dependent spouse and Miguel Gomez the son of an active duty service member assigned to the base. Their last known U.S. address at the time of indictment was Jacksonville, Arkansas.
The investigation was conducted by the U.S. Air Force Office of Special Investigations. Trial Attorney Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Stacy Williams of the Eastern District of Arkansas are prosecuting the case.
U.S. Attorney, DEA Ask Georgians to Clear Out Unused Prescription Medications, Fight Growing Opioid EpidemicRead the Press Release
MACON— The 17th National Prescription Drug Take Back Day is this weekend, and collection sites will be open across the Middle District of Georgia, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. People can safely and anonymously dispose of their expired, unused and unwanted prescription medications on Saturday, April 27, 2019. Approximately 6,000 collection sites manned by nearly 5,000 partner law enforcement agencies will be open across the country. In Georgia, people can find their closest collection site online at www.DEATakeBack.com or by calling 1-800-882-9539. Collection sites are open Saturday from 10 a.m. to 2 p.m. Liquids, needles and sharps will not be accepted, only pills and patches.
The United States Drug Enforcement Administration (DEA) began this free service to remove opioids and other addictive medicines from homes, where they are vulnerable to misuse, theft or abuse by family members and visitors, including children and teens. DEA has collected a total of nearly 11 million pounds (more than 5,400 tons) of medicines since Take Back Day’s inception in 2010. The rate of prescription drug abuse in the United States continues to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The majority of prescription drug abusers say they get their drugs free from friends and family, including from the home medicine cabinet. Take Back Day is a unique opportunity for Americans to protect their homes and medicine cabinets from theft and abuse.
“The societal problems created by opioid addiction are serious and widespread, and we are dealing with the negative effects in our justice system every day,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Doing something as simple as cleaning out your medicine cabinet of unwanted prescription drugs, and properly disposing of them, will have a positive impact in our communities. The goal is to decrease opioid addiction, and we all need to work together to end easy access to these highly addictive drugs.”
“Addressing the problem of the abuse of controlled pharmaceuticals continues to be one of DEA’s top priorities,” said Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division, DEA. “One way to address this issue is to encourage the public to properly remove their unwanted, unused and dated prescription medications from their homes. DEA and its law enforcement, tribal and community partners are holding its seventeenth take-back event in order to child proof and teen proof homes so that these medications cannot be abused. I invite you to do your part in the midst of this opioid crisis as we strive to make our communities safer.”
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. Take Back Day provides a free and anonymous way to safely dispose of millions of medications languishing in home cabinets, becoming highly susceptible to diversion, misuse or abuse. Last October, Americans turned in 457 tons (900,000 pounds) of prescription drugs on National Take Back Day. It’s quick and easy to locate a disposal site by visiting www.DEATakeBack.com and scrolling down to Collection Site Locator, then entering your zip code or County/City/State to see the collection sites nearest you.
Questions can be directed to Pamela Lightsey, Public Information Officer, and United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
U.S. Attorney Supports Taking Back Unused Prescription Drugs on April 27thRead the Press Release
LEXINGTON, Ky. – Robert M. Duncan, Jr., the U.S. Attorney for the Eastern District of Kentucky, has announced his support for the DEA and Lexington Police Department, in their National Prescription Drug Take Back Day, on Saturday, April 27th, from 10 a.m. to 2 p.m., and his encouragement to the public to participate in the event. The DEA and local agencies will be providing a 17th opportunity, in the past 9 years, to take an easy step toward preventing pill abuse and theft, by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs.
Bring your pills for disposal to the following site:
Lexington - Kentucky American Water, 2300 Richmond Rd.
The DEA cannot accept liquids, needles, or sharps, only pills or patches. The service is free and anonymous, no questions asked.
“I strongly support the efforts of DEA and our other law enforcement partners in reducing unlawful access to prescription drugs,” stated U.S. Attorney Duncan. “The DEA and the other agencies involved in Take Back Day provide a vital resource in fighting the opioid problem in the Commonwealth. Far too often, the path to addiction starts with experimentation with legitimately prescribed prescription opioids found in the home. By participating in Take Back Day and disposing of unused pills, you can help prevent a loved one from misusing or abusing prescription drugs.”
At a time when prescription opioid pain relievers are killing more Americans than car accidents, the National Prescription Drug Take-Back Day is an easy way we can all make sure that our unneeded, unused, or expired medications don’t end up in the wrong hands,” said D. Christopher Evans, Special Agent In Charge of DEA’s Louisville Field Division.
Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The majority of prescription drug abusers say they get their drugs free from friends and family, including from the home medicine cabinet. Take Back Day is a unique opportunity for Americans to protect their homes and medicine cabinets from theft and abuse.
National Take Back Day has received enthusiastic public support since its inception in 2010. Last October, the public turned in 457 tons (914,236 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and nearly 4,800 of its local and tribal partners.
For more information about the disposal of prescription drugs or about the April 27th Take Back Day event, go to www.DEATakeBack.com.
U.S. Attorney Encourages Public to Participate in DEA’s Prescription Drug Take Back DayRead the Press Release
BOISE – U.S. Attorney Bart M. Davis will join the Drug Enforcement Administration (DEA) on April 27th for its 17th National Prescription Drug Take Back Day. The biannual event will be held from 10 a.m. to 2 p.m., at thousands of collection sites around the country, including 45 here in Idaho. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
Idahoans know that opioid abuse is at a crisis level, nationally. Our state is no different, as we, also, experience all-too-frequent drug overdose deaths. “The widespread prevalence of unused prescription medication is a significant contributor to the problem,” stated U.S. Attorney Davis. “Prescription Drug Take Back Day is an opportunity to get rid of a substantial part of the pain pill supply available for abuse. I urge everyone to do their part to fight drug abuse by going to a collection site and safely disposing of unused, expired, and dangerous prescription medication.”
Last October Americans turned in 457 tons (900,000 pounds) of prescription drugs at almost 6,000 sites operated by the DEA and more than 4,800 of its state and local law enforcement partners. Overall, in its 16 previous Take Back events, DEA and its partners have taken in over 11 million pounds—more than 5,400 tons—of pills. The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps, only pills or patches.)
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at www.DEATakeBack.com where you can search by zip code, city, or state.
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U.S. Attorney Encourages Public Participation in DEA’s 17th National Prescription Drug Take Back DayRead the Press Release
Columbia, South Carolina --- U.S. Attorney Sherri A. Lydon today encouraged public participation in the Drug Enforcement Administration’s 17th National Prescription Drug Take Back Day. The biannual event will take place this Saturday, April 27, from 10:00 a.m. to 2:00 p.m., at thousands of collection sites around the country, including 66 here in South Carolina. National Prescription Drug Take Back Day is an effort to remove opioids and other medicines from the nation’s homes, where they are vulnerable to misuse, theft, or abuse by family members and visitors, including children and teens.
“Opioid fatalities in South Carolina swelled by 700% between 2002 and 2017,” said U.S. Attorney Lydon. “Working together, we can break the vicious cycle of drug abuse, addiction, and overdose that has devastated countless families across our state. The DEA’s National Prescription Drug Take Back Day is an opportunity to safely dispose of your prescription drugs, helping to keep dangerous narcotics out of the wrong hands and to stop opioid addiction before it starts.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division said, “Addressing the problem of the abuse of controlled pharmaceuticals continues to be one of DEA’s top priorities. One way to address this issue is to encourage the public to properly remove their unwanted, unused, and dated prescription medications from their homes. DEA and its law enforcement, tribal, and community partners are holding its seventeenth take-back event in order to child proof and teen proof homes so that these medications cannot be abused. I invite you to do your part in the midst of this opioid crisis as we strive to make our communities safer.”
Last October, South Carolinians participating in DEA’s Drug Take Back Day turned in 7,526 pounds of unwanted or expired medications for safe and proper disposal. Overall, in its 16 previous Take Back events, DEA and its partners have taken in over 11 million pounds—more than 5,400 tons—of pills. The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps. It can accept only pills or patches.)
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, visit https://takebackday.dea.gov/#collection-locator.
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U.S. Attorney David C. Joseph partners with DEA in its 17th annual National Prescription Drug Take Back DayRead the Press Release
SHREVEPORT, LAFAYETTE, MONROE, ALEXANDRIA, LAKE CHARLES, La. – United States Attorney David C. Joseph will join the DEA this weekend for its 17th National Prescription Drug Take Back Day. The public will have the opportunity to rid their homes of potentially dangerous expired, unused and unwanted prescription drugs between 10 a.m. and 2 p.m. on Saturday, April 27, at collection sites across the Western District of Louisiana, which local law enforcement agencies and community partners will operate. The disposal service is free and anonymous - no questions asked.
“Unused prescription drugs often make their way into the hands of those who abuse them or children who might accidentally take them,” Joseph sated. “Please take advantage of this opportunity to dispose of these dangerous substances on Saturday at locations throughout the Western District of Louisiana. I am pleased to partner with DEA in supporting this event, and I encourage the public to do their part.”
“Prescription drug abuse has become the nation’s fastest growing drug epidemic,” DEA New Orleans Field Division Special Agent in Charge Brad Byerley said. “Last year, more Americans died from opioid overdoses than from all other drugs combined, including meth, cocaine and hallucinogens. Unfortunately, these prescription drugs are most often obtained from friends and family, who leave them in home medicine cabinets. DEA’s Take-Back initiative provides citizens an easy and safe way to dispose of unwanted prescription drugs. Please do your part to keep prescription drugs off the streets and help spread awareness in your community.”
Last October, Americans turned in 457 tons (914,236 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and nearly 4,800 of its state and local law enforcement partners. In Louisiana, 3,615 pounds were collected. Overall, in its 16 previous Take Back events, DEA and its partners have taken in more than 11 million pounds—more than 5,400 tons—of pills.
Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses because of these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 46 Americans die each day from an opioid overdose.
To find a collection site near you, go to: www.DEATakeBack.com where you can search by zip code, city and state or call 800-882-9539. (DEA cannot accept liquids, needles, or sharps, only pills or patches.)
Drugs can be dropped off from 10 a.m. to 2 p.m. at the following locations across the Western District of Louisiana:
Shreveport
- Caddo Parish Sheriff’s Office Safety Town, 8910 Jewella Ave.
- Pierremont Mall, 4801 Line Ave. – staffed by Shreveport Police Department
- Louisiana State Police Troop G, 5300 Industrial Drive Ext.
Lafayette
- Lafayette Parish Sheriff’s Office Public Safety Complex, 1825 W. Willow St.
Alexandria
- Alexandria Police Department, 1000 Bolton Ave.
Lake Charles
- Lake Charles Police Department, Civic Center, 900 Lake Shore Drive
- Westlake Police Department, 701 Johnson Street
- Louisiana State Police, Troop D, 805 Main St.
Monroe
- Louisiana State Police, Troop F, 3811 Desiard St.
- Monroe Police Department, 700 Wood St.
Parents and children are encouraged to educate themselves about the dangers of drugs by visiting DEA’s interactive websites at www.JustThinkTwice.com, www.GetSmartAboutDrugs.com and www.dea.gov.
U.S. Attorney Christina E. Nolan Announces DEA and Partners Hold National Prescription Drug Take Back Day on SaturdayRead the Press Release
Burlington, VT – This weekend, the U.S. Drug Enforcement Administration will once again conduct one of its most popular community programs: National Prescription Drug Take Back Day. On Saturday, April 27, between 10 a.m. and 2 p.m., the public can dispose of their expired, unused and unwanted prescription medications at over 600 collection sites throughout New England, operated by local law enforcement agencies and other community partners. The service is free of charge, no questions asked and most of these collection sites can be found in the lobby of your local Police Department. To find a collection site near you go to: https://takebackday.dea.gov/.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that flushing these drugs down the toilet or throwing them in the trash posed potential safety and health hazards.
“DEA has touched a nerve in America with its recent Take Back events, as evidenced by the millions of pounds of pills collected during our previous 16 events,” said DEA Special Agent in Charge Brian D. Boyle. “These events are only made possible through the dedicated work and commitment of our local, state and federal partners, and DEA thanks each and every one of them for their continuous efforts on behalf of the American people.”
Last October, during its 16th Take Back Day, the DEA New England Division participated in the drug take back day and, over the course of four hours, 80,277.58 pounds or 40 tons of expired, unused and unwanted prescription drugs were collected at 613 collection sites throughout New England.
The following was the breakdown of collected weights for the six New England states: CT 4,792.30 lbs.
MA 26,255.58 lbs.
ME 27,156.70 lbs.
NH 11,880 lbs.
RI 4,364 lbs.
VT 5,829 lbs.
TOTAL 80,277.58 lbs.
U.S. Attorney Christina E. Nolan praised the DEA for spearheading the take back initiative, and thanked state, local, and county Vermont law enforcement partners for participation and assistance with the program. She stated: “It goes without saying that we cannot charge our way out of the drug crisis. As we continue to vigorously pursue reduction of drug supply in Vermont through investigation and prosecution, we must work with equal vigor to reduce demand and prevent first time drug use. I commend our partners at DEA for recognizing the importance of prevention and for doing so much to remove excess pharmaceutical drug supply from homes throughout Vermont. Every pill taken back on Saturday contributes to a reduction in risk that a Vermonter will try opiates or other drugs for the first time. Accordingly, we should all celebrate this initiative.”Two men with prior homicide convictions sentenced to prison for firearms and drug crimes after search of Canton home revealed guns, drugs and body armorRead the Press Release
Two men with prior homicide convictions were sentenced to prison for firearms and drug trafficking charges crimes.
Maurice A. Stewart, 42, was sentenced to more than 18 years in prison this week. A jury previously convicted him of drug trafficking, possession of a firearm in furtherance of a drug trafficking and being a felon in possession of firearms.
William W. Moore, 38, was sentenced to 63 months in prison. He previously pleaded guilty to drug and firearms charges.
A third man, Jason E. Cousins, 47, was sentenced to 73 months in prison. Cousins was found guilty of a firearm offense following a trial.
According to court documents and evidence presented in court:
U.S. Marshals were searching for Moore, who was wanted on drug and firearms warrants out of West Virginia, when they tracked him to a home in Canton on November 17, 2016.
A search of the home resulted in the recovery of nearly eight pounds of methamphetamine, cocaine, crack cocaine, $10,904 in cash, two loaded handguns, a Mossberg 12 gauge shotgun, an AR-15 rifle and body armor.
The evidence at trial connected all three men to items recovered at the residence.
Moore was prohibited from possessing a firearm because of a previous conviction for murder.
Stewart was prohibited from possessing a firearm because of a previous conviction involuntary manslaughter.
Cousins was prohibited from possessing a firearm because of previous convictions for possession of cocaine and carrying a concealed weapon.
This case is being prosecuted by Assistant U.S. Attorneys Aaron P. Howell and Peter Daly following an investigation by the U.S. Marshals Fugitive Task Force, the Canton Police Department, the Federal Bureau of Investigation and the Drug Enforcement Administration.
Two Pharmaceutical Companies Agree to Pay a Total of Nearly $125 Million to Resolve Allegations that they Paid Kickbacks Through Co-Pay Assistance FoundationsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that two pharmaceutical companies – Astellas Pharma US, Inc. (Astellas), and Amgen Inc. (Amgen) – have agreed to pay a total of $124.75 million to resolve allegations that they violated the False Claims Act by illegally paying the Medicare co-pays for their own high-priced drugs.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively, co-pays). Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
“According to the allegations in today’s settlements, Astellas and Amgen conspired with two co-pay foundations to create funds that functioned almost exclusively to benefit patients taking Astellas and Amgen drugs,” said United States Attorney Andrew E. Lelling. “As a result, the companies’ payments to the foundations were not ‘donations,’ but rather were kickbacks that undermined the structure of the Medicare program and illegally subsidized the high costs of the companies’ drugs at the expense of American taxpayers. We will keep pursuing these cases until pharmaceutical companies stop engaging in this kind of behavior.”
“When pharmaceutical companies use foundations to create funds that are used improperly to subsidize the copays of only their own drugs, it violates the law and undercuts a key safeguard against rising drug costs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “These enforcement actions make clear that the government will hold accountable drug companies that directly or indirectly pay illegal kickbacks.”
“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the Department of Health and Human Service’s Boston Regional Office. “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program.”
“As today’s settlements make clear, the FBI will aggressively go after pharmaceutical companies that look to bolster their drug prices by paying illegal kickbacks--whether directly or indirectly--to undermine taxpayer funded healthcare programs, including Medicare,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
The government’s allegations in the two settlements announced today are as follows:
Astellas. Astellas sells Xtandi, an androgen receptor inhibitor (ARI) drug used to treat metastatic castration resistant prostate cancer (mCRPC) in patients who have failed chemotherapy. While there are other mCRPC drugs, none of the other major mCRPC drugs is an ARI. The government alleges that, during the period from July 2013 through December 2014, Astellas arranged for two foundations to operate ARI funds that covered mCRPC patients’ co-pays for ARIs, but not for other mCRPC drugs, and that Xtandi patients received nearly all of the assistance from these two funds. The government further alleges that, during the time that the ARI funds were open, Astellas promoted the existence of the ARI funds as an advantage for Xtandi over competing mCRPC drugs in an effort to persuade medical providers to prescribe Xtandi. During this period, Astellas raised the price of Xtandi at over 24 times the rate of overall inflation in the United States. Astellas has agreed to pay $100 million to resolve the government’s allegations.
Amgen. Amgen sells Sensipar, a treatment for secondary hyperparathyroidism (SHPT), and Kyprolis, a treatment of multiple myeloma. The government alleges that, in late 2011, Amgen stopped donating to a foundation that covered co-pays for patients taking any of several SHPT drugs and approached a new foundation about creating a fund that would cover only Sensipar patients’ Medicare co-pays. Amgen thereafter paid millions of dollars to this fund. Until June 2014, the fund helped only Sensipar patients, as Amgen had requested. Amgen allegedly covered the co-pays of Sensipar patients through this fund even though the cost of doing so exceeded the cost Amgen would have incurred by providing free Sensipar to the same patients. By enabling the fund to cover the copays of Medicare beneficiaries, Amgen caused claims to be submitted to Medicare and generated revenue for itself. During the period the fund covered only Sensipar, Amgen raised the price of Sensipar at over four times the rate of overall inflation in the United States.
The government further alleges that Amgen’s predecessor, Onyx Pharmaceuticals Inc. (Onyx), asked a different foundation to create a fund that, ostensibly, would cover health care related travel expenses for patients taking any multiple myeloma drug, but that, as Onyx and the foundation both knew, functioned almost exclusively to cover travel expenses for patients taking Kyprolis. The foundation also operated a second fund that covered co-pays for several multiple myeloma drugs, including Kyprolis. The government alleges that, for 2013, Onyx obtained data from the foundation on the multiple myeloma fund’s anticipated and actual expenses for coverage only of Kyprolis co-pays. Onyx then donated to the fund in an amount Onyx understood to be sufficient only to cover the co-pays of Kyprolis patients. Amgen has agreed to pay $24.75 million to resolve the government’s allegations.
Amgen and Astellas each entered five-year corporate integrity agreements (CIAs) with OIG as part of their respective settlements. The CIAs require the companies to implement measures, controls, and monitoring designed to promote independence from any patient assistance programs to which they donate. In addition, the companies agreed to implement risk assessment programs and to obtain compliance-related certifications from company executives and Board members.
To date, the Department of Justice has collected over $840 million from eight pharmaceutical companies (United Therapeutics, Pfizer, Actelion, Jazz, Lundbeck, Alexion, Astellas, and Amgen) that allegedly used third-party foundations as kickback vehicles. The U.S. Attorney’s Office for the District of Massachusetts initiated each of these investigations.
U.S. Attorney Lelling, Assistant Attorney General Hunt, HHS-OIG SAC Coyne, and FBI SAC Bonavolonta made the announcement today. The U.S. Postal Inspection Service also assisted with the investigation. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Abraham George, of Lelling’s Affirmative Civil Enforcement Unit, and by Trial Attorneys Augustine Ripa and Sarah Arni of the Justice Department’s Civil Division.
Two Pharmaceutical Companies Agree to Pay a Total of Nearly $125 Million to Resolve Allegations That They Paid Kickbacks Through Copay Assistance FoundationsRead the Press Release
The Department of Justice announced today that two more pharmaceutical companies – Astellas Pharma US Inc. (Astellas) and Amgen Inc. (Amgen) – have agreed to pay a total of $124.75 million to resolve allegations that they each violated the False Claims Act by illegally paying the Medicare copays for their own products, through purportedly independent foundations that the companies used as mere conduits.
When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce Medicare patients to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
“When pharmaceutical companies use foundations to create funds that are used improperly to subsidize the copays of only their own drugs, it violates the law and undercuts a key safeguard against rising drug costs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “These enforcement actions make clear that the government will hold accountable drug companies that directly or indirectly pay illegal kickbacks.”
“According to the allegations in today’s settlements, Astellas and Amgen conspired with two copay foundations to create funds that functioned almost exclusively to benefit patients taking Astellas and Amgen drugs,” said United States Attorney Andrew E. Lelling. “As a result, the companies’ payments to the foundations were not ‘donations,’ but rather were kickbacks that undermined the structure of the Medicare program and illegally subsidized the high costs of the companies’ drugs at the expense of American taxpayers. We will keep pursuing these cases until pharmaceutical companies stop engaging in this kind of behavior.”
“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the Department of Health and Human Service’s Boston Regional Office. “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program.”
“As today's settlements make clear, the FBI will aggressively go after pharmaceutical companies that look to bolster their drug prices by paying illegal kickbacks — whether directly or indirectly — to undermine taxpayer funded healthcare programs, including Medicare,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
Amgen and Astellas each entered five-year corporate integrity agreements (CIAs) with OIG as part of their respective settlements. The CIAs require the companies to implement measures, controls, and monitoring designed to promote independence from any patient assistance programs to which they donate. In addition, the companies agreed to implement risk assessment programs and to obtain compliance-related certifications from company executives and Board members.
The government’s allegations in the two settlements being announced today are as follows:
Astellas: Astellas sells Xtandi, an androgen receptor inhibitor (ARI) used to treat certain prostate cancer; none of the other major drugs to treat the condition is an ARI. The government alleged that, in May 2013, Astellas asked two foundations about the creation of copay assistance funds to cover the copays for Medicare patients taking ARIs, but not for other types of prostate cancer drugs. In July 2013, both foundations opened ARI-only copay funds; Astellas was the sole donor to both funds. The government alleged that Astellas knew that Xtandi would likely account for the vast majority of utilization from each fund, and, in fact, Medicare patients taking Xtandi received nearly all of the copay assistance from the two ARI funds. The government further alleged that, during the time that the ARI funds were open, Astellas promoted the existence of the ARI funds as an advantage for Xtandi over competing drugs in an effort to persuade medical providers to prescribe Xtandi. Astellas has agreed to pay $100 million to resolve the government’s allegations.
Amgen: Amgen sells the secondary hyperparathyroidism drug Sensipar and the multiple myeloma drug Kyprolis. Amgen acquired Kyprolis as part of its acquisition of Onyx Pharmaceuticals Inc. in 2013. With respect to Sensipar, the government alleged that, in late 2011, Amgen stopped donating to a foundation that provided financial support to patients taking any of several secondary hyperparathyroidism drugs and approached a new foundation about creating a “Secondary Hyperparathyroidism” fund that would support only Sensipar patients. Amgen allegedly worked with the new foundation to determine the fund’s coverage parameters and, in November 2011, the foundation launched a “Secondary Hyperparathyroidism” fund with Amgen as its sole donor. Until June 2014, the fund covered only Sensipar. Amgen allegedly made payments to the fund even though the cost of these payments exceeded the cost to Amgen of providing free Sensipar to financially needy patients. However, by enabling the fund to cover the copays of Medicare beneficiaries, Amgen caused claims to be submitted to Medicare and generated revenue for itself.
With respect to Kyprolis, the government also alleged that Amgen’s predecessor, Onyx, asked a foundation to create a fund that ostensibly would cover health care related travel expenses for patients taking any multiple myeloma drug, but which was actually used almost exclusively to cover travel expenses for patients taking Kyprolis, which must be infused at certain health care facilities. The government alleged that Onyx was the sole donor to this travel fund and that Amgen, after integrating Onyx into its operations in 2015, continued to donate to the fund. The foundation also operated a second fund that covered copays for multiple myeloma drugs, including Kyprolis. While this latter fund had multiple donors, the government alleged that, for 2013, Onyx received data from the foundation on the fund’s anticipated and actual expenses for coverage of Kyprolis copays, which it used to tailor its donations to the fund to just the amount needed to cover the copays of Kyprolis patients. Amgen has agreed to pay $24.75 million to resolve the government’s allegations.
The government’s resolution of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
These investigations were conducted by the Department of Justice’s Civil Division and the U.S. Attorney’s Office for the District of Massachusetts, in conjunction with the Department of Health and Human Services, Office of Inspector General; and the FBI. The U.S. Postal Inspection Service also assisted with the investigation.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Two Eastside Hollygrove Residents Plead Guilty to Gun and Drug ViolationsRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that JONATHAN LAWRENCE, a/k/a “Chop,” a/k/a “Mego,” age 32, and VONZO MAGEE, a/k/a “Zo, a/k/a “Dark Low,” age 31, both of New Orleans, pleaded guilty yesterday to violations of the Federal Controlled Substances Act and Federal Gun Control Act.
Specifically, LAWRENCE pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute heroin and fentanyl; one count of conspiring to possess firearms in furtherance of drug trafficking; and one count of discharging a firearm in a school zone. On his drug conspiracy count, LAWRENCE is facing a mandatory minimum sentence of 15 years’ imprisonment, a maximum sentence of life, a possible fine of up to $20,000,000, and at least ten years of supervised release upon his release from prison. On the firearm conspiracy count, LAWRENCE is facing a maximum sentence of 20 years’ imprisonment, a possible fine of up to $250,000, and not more than three years of supervised release. On the discharging a firearm in a school zone count, LAWRENCE is facing a maximum sentence of 5 years’ imprisonment, a possible fine of up to $100,000, and not more than one year of supervised release.
MAGEE pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute heroin and fentanyl, and one count of being a felon in possession of a firearm. On the drug conspiracy count, MAGEE is facing a mandatory minimum sentence of 5 years’ imprisonment, a maximum sentence of 40 years’ imprisonment, a possible fine of up to $5,000,000, and at least four years of supervised release upon his release from prison. On the felon in possession count, MAGEE is facing a maximum sentence of 10 years’ imprisonment, a possible fine of up to $250,000, and not more than three years of supervised release.
U.S. District Judge Sarah S. Vance will sentence LAWRENCE and MAGEE on August 7, 2019.
U.S. Attorney Strasser praised the work of the FBI New Orleans Gang Task Force (NOGFT), which led this investigation and was assisted by the Drug Enforcement Administration, New Orleans Police Department, St. Tammany Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, and the Orleans Parish District Attorney’s Office. Assistant United States Attorneys Brandon S. Long, David Haller, and Edward Rivera are in charge of the prosecution.
Two Canadian men indicted for selling carfentanil, fentanyl and heroin over the Internet and shipping the drugs to Europe, Canada and the U.S., including OhioRead the Press Release
Two Canadian men were indicted for their roles in a conspiracy to sell carfentanil, fentanyl, heroin and other drugs over the Internet and ship the drugs to locations in Europe, Canada and the United States, including Northern Ohio.
Named in the 10-count indictment are Robert Mitrache, 34, of Chateauguay, and Louis-Vincent Bourcier, 30, of Mercier. They are charged with conspiracy to import controlled substances, distribution of furanyl fentanyl, distribution of heroin and methamphetamine, and other charges.
According to the indictment filed in U.S. District Court in Cleveland:
Mitrache and Bourcier were among the people who controlled the Pharmaphil vendor account that operated on dark net marketplaces such as AlphaBay, Dream Market, the Majestic Garden and other marketplaces.
The Pharmaphil account served as an online storefront that trafficked narcotics such as fentanyl, carfentanil, heroin and methamphetamine to locations in Canada, the United States, Germany, Austria and other countries. The organization had more than 1,500 confirmed sales across multiple dark net marketplaces, according to the indictment.
Mitrache, Bourcier and others used various methods designed to protect the anonymity of buyers and sellers from law enforcement and other organizations. These methods included internally hosted message boards, using encrypted messaging applications, and proxies, which bounced network traffic from one computer to another.
Members of the conspiracy laundered its drug profits through a variety of means, including maintaining and using digital currency such as bitcoin, according to the indictment.
The conspiracy took placed between at least May 2015 through December 16, 2017, according to the indictment.
Both defendants are currently incarcerated in Canada.
“This case is a stark reminder of the way deadly narcotics are bought and sold has changed dramatically,” U.S. Attorney Justin Herdman said. “Law enforcement has adapted too and are working to arrest and prosecute those who sell opioids and other drugs over the Internet.”
“The charges against these defendants should make it abundantly clear that those who distribute deadly drugs via the Dark Net are not out of reach of law enforcement,” said Homeland Security Investigations Special Agent in Charge Steve Francis. “HSI is committed to targeting the unlawful sale of opioids, following the money trails and leveraging our international and local partnerships to dismantle drug smuggling rings and stop this opioid crisis from spreading any further.”
“Battling the distribution of synthetic opioids in the U.S. is one of the Postal Inspection Service’s highest priorities,” said U.S. Postal Inspection Service’s Inspector in Charge Tommy Coke. “The indictment proves postal inspectors and their law enforcement partners remain steadfast in dismantling dark net vendors of illicit and dangerous items. This should serve as an example to criminal groups using the dark net that we are unwavering in our mission to identify and disrupt their illegal activity.”
FBI Special Agent in Charge Eric B. Smith said: "These two defendants believed that by utilizing the dark web and sophisticated cyber techniques their dangerous, world wide drug dealing would go undetected by law enforcement - they were wrong. Collaborative law enforcement techniques identified these two and now they will be held accountable for selling and distributing deadly controlled substances."
This case was investigated by Homeland Security Investigations, the U.S. Postal Inspection Service, the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations as part of “Operation Darkness Falls,” a joint operation targeting people and organizations that sell fentanyl and other drugs over the dark net. Also involved in this investigation were the Royal Canadian Mounted Police, the Public Prosecution Service of Canada, the Justice Department’s Special Operations Division and federal law enforcement in the District of Arizona. This case is being prosecuted by Assistant U.S. Attorneys Matthew Cronin and Daniel Riedl.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking, money laundering and violent criminal organizations operating domestically and internationally. The principle mission of the OCDETF Program is to identify, disrupt and dismantle the most serious drug trafficking, money laundering and violent criminal organizations and those primarily responsible for the nation’s drug supply.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Twenty people indicted for their roles in a conspiracy to obtain large amounts of heroin, fentanyl and fentanyl analogues and sell the drugs to customers on the west side of ClevelandRead the Press Release
Twenty people were indicted in federal court for their roles in a conspiracy to obtain large amounts of heroin, fentanyl and fentanyl analogues and sell the drugs to customers on the west side of Cleveland.
Named in the 27-count indictment are: Alquin Wells, 37, of Sheffield Lake; Ronelle Davis, 28, of Sheffield Lake; Malcolm Collins, 46; Travon Gales, 24, of Maple Heights; Ronnie Edgell, 54; Lashaun Moncrief, 36; Matthew Kucera, 46; Amber Moore, 35, of Parma; Gloria Hrdy, 29; Patricia Truman, 28; Molly Medlik, 24; Cody Ray Lee, 25; Lisa Goforth, 27; Shaunna Collier, 23; Virginia May, 37; Tamie Seitz, 49; John Dickson, 39, of Brunswick; Elizabeth Gallagher, 30; Bobbi Boylan, 34, and Imani Nicholson, 23, of Sheffield Village. All are from Cleveland unless otherwise noted.
All 20 are indicted on one count of conspiracy to distribute and possess with intent to distribute heroin, fentanyl and fentanyl analogues.
Goforth and Boylan are charged with distribution of heroin, fentanyl, carfentanil and acetylfentanyl with a potential sentencing enhancing for selling drugs that resulted in serious bodily injury on March 1.
Gales, Wells and Collins also were indicted for firearms crimes. Davis and Nicholson were indicted for conspiracy to launder money.
An additional defendant, DeMarco Clayton, 24, of Sheffield Lake, faces firearms and drug charges for allegedly having heroin, a revolver and ammunition on April 3. Clayton is forbidden from having firearms or ammunition because of numerous previous convictions, according to the indictment.
According to the indictment:
Wells and Davis obtained ounce quantities of heroin, fentanyl and fentanyl analogues, which they sold to other dealers and customers in Cleveland. Specifically, Wells and Davis sold drugs to Collins, Gales and Moncrief.
Wells, Davis, Collins and Gales also sold heroin and fentanyl to Edgell, Kucera, Moore, Hrdy, Truman, Medlik, Lee, Goforth, Collier, May, Seitz, Dickson and Gallagher, who sold the heroin and fentanyl to others.
Wells, Gales and others carried firearms to protect themselves, their drugs and their drug proceeds. Wells and Davis used Davis’ residence in Sheffield Lake to store the drugs, process the heroin and fentanyl and store the profits of their drug sales, according to the indictment.
The conspiracy took place between September 2017 and April 2019, according to the indictment.
Wells was shot three times during a suspected home invasion on November 10, 2017. Two unidentified males took Wells’ gold Range Rover. The vehicle was later found burned on East 32nd Street in Cleveland, according to the indictment.
The indictment details numerous occasions when Wells met customers in the parking lots of fast food restaurants, supermarkets, gas stations and other stores to make hand-to-hand drug transactions.
Boylan and Goforth on March 1 sold a mixture of heroin, fentanyl, carfentanil and acetylfentanyl to someone identified as T.M., which caused T.M. to overdose and suffer serious bodily injury, according to the indictment.
Prosecutors are seeking to seize six firearms and more than $44,000 seized as part of the investigation.
“This group is accused of selling deadly drugs, illegally carrying firearms, laundering their drug profits and contributing to this scourge that has killed thousands of Ohioans,” U.S. Attorney Justin E. Herdman said.
FBI Special Agent in Charge Eric B. Smith said: “This group of individuals brought deadly drugs, firearms and danger to the public. Law enforcement's collaborative efforts have thwarted their criminal behavior for a safer community.”
“The collaborative efforts of the Northern Ohio Law Enforcement Task Force have once again resulted in taking criminal activity off of the streets of our communities,” said Cleveland Police Chief Calvin D. Williams. “We hope that these arrests indictments serve as a warning to those intending to participate in future illegal activities.”
“Today’s indictment demonstrate that IRS agents will continue to follow the money trail to disrupt the flow of ill-gotten gains that are the lifeblood of criminal enterprises,” said William Cheung, Acting Special Agent in Charge of the Internal Revenue Service – Criminal Investigations.
Lakewood Police Chief Tim Malley said: “The Lakewood Police Department values its participation in the Northeast Ohio Law Enforcement Task Force. Working with our partners from federal, state and other local agencies is a requirement to shut down these drug networks that have no jurisdictional boundaries. We are committed on the law enforcement end to stopping the delivery of these deadly drugs to our communities.”
“Opioid-abuse is a public health crisis severely impacting our nation’s veterans” said Special Agent in Charge Gregg Hirstein, Department Veterans Affairs, Office of the Inspector General. “We will investigate and seek prosecution against anyone illegally purveying these deadly products.”
If convicted, the defendants’ sentences will be determined by the Court after review of the factors unique to this case, including the defendants’ prior criminal records, their roles in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Margaret Sweeney following an investigation by the Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Customs and Border Patrol, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation, Ohio Adult Parole Authority and the police departments of Euclid, Lakewood, the Regional Transit Authority, Westlake and Moreland Hills. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking, money laundering and violent criminal organizations operating domestically and internationally. The principle mission of the OCDETF Program is to identify, disrupt and dismantle the most serious drug trafficking, money laundering and violent criminal organizations and those primarily responsible for the nation’s drug supply.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant guilty beyond a reasonable doubt.
Traveling Bandit Indicted by Grand Jury in South FloridaRead the Press Release
A Kentucky man who is alleged to have robbed banks throughout the United States was indicted for robbing a Capital Bank branch located in Aventura, Florida. He remains in custody.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Jason Lee Robinson, 40, of Pikeville, Kentucky, was charged with one count of bank robbery, in violation of Title 18, United States Code, 2113(a). Robinson was previously charged by criminal complaint (Case No. 19-mj-2082). Robinson is currently being detained in South Florida. If convicted of the single count of bank robbery, Robinson faces a maximum statutory sentence of 20 years in prison.
According to court records and allegations, Robinson robbed seven banks in states around the country. On December 28, 2018, Robinson robbed a Capital Bank in Aventura, Florida of approximately $1,900. On January 2, 2019, he robbed a SunTrust Bank in Asheville, North Carolina. On January 4, 2019, he robbed a Mountain Commerce Bank in Johnson City, Tennessee. On January 8, 2019, he robbed a U.S. Bank in Mount Juliet, Tennessee. On January 10, 2019, he robbed a Trustmark Bank in Prattville, Alabama. On January 14, 2019, he robbed a Fifth Third Bank in Mount Vernon, Illinois. On January 17, 2019, he robbed a Wells Fargo Bank in Price Branch, Utah.
Each bank deposit was insured by the Federal Deposit Insurance Corporation.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. Mrs. Fajardo Orshan thanked the FBI’s Field Offices in Charlotte, North Carolina, Knoxville, Tennessee, Memphis, Tennessee, Mobile, Alabama, Springfield, Illinois, Salt Lake City, Utah, Price Branch, Utah, Denver, Colorado, and Louisville, Kentucky, for their assistance. This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Toppenish Man Sentenced to 30 Months in Federal Prison for Involuntary ManslaughterRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Shane Marcus Lloyd, age 30, of Toppenish, Washington, and an enrolled member of the Confederated Bands and Tribes of the Yakama Nation was sentenced today after having pleaded guilty on November 15, 2018, to Crime on Indian Reservation – Involuntary Manslaughter. Senior United States District Judge Lonny R. Suko sentenced Lloyd to a 30-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison. A restitution hearing is currently scheduled for June 27, 2019.
According to information disclosed during court proceedings, in March 2014, Lloyd was charged with driving under the influence. In November 2014, Lloyd pled guilty to first degree negligent driving and was placed on probation. Subsequently, a warrant was issued due to his alleged noncompliance with conditions of probation. On October 1, 2017, at approximately 5:00 a.m., Lloyd operated a motor vehicle while under the influence of alcohol. Lloyd ran a stop sign and crashed into another vehicle, which resulted in injuries to one victim and the death of the other victim. Law enforcement officers responded to the scene and smelled a strong odor of alcohol emanating from Lloyd’s person. Lloyd acknowledged that the accident was his fault.
Joseph H. Harrington said, “Driving under the influence of alcohol or drugs is a serious offense that can and does result in grave consequences to victims. The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Yakama Nation Police Department, the Yakima County Sheriff’s Office and the Federal Bureau of Investigation who investigated this case. Their symbiotic professional partnership resulted in the successful outcome of this matter.”
This case was investigated by the Yakama Nation Police Department, the Yakima County Sheriff’s Office, and the Federal Bureau of Investigation. This case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
Tangier Oysterman Pleads Guilty to over Harvesting OystersRead the Press Release
NORFOLK, Va. – A Tangier Island man pleaded guilty today to violating the Lacey Act by harvesting oysters from the Chesapeake Bay in excess of Virginia limits and transporting them to Maryland for sale.
“The protection of our environmental harvest is one of the responsibilities shared by the U.S. Attorney’s Office and our law enforcement partners,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “As stewards of the environment, we must endeavor to ensure that everyone adheres to the principle of fair and sustainable use of these natural resources, lest they be destroyed for future generations. Individuals who skirt this responsibility and harvest oysters beyond established limits deplete our resources, degrade our environment, and cheat those honest oystermen who uphold the law. As an avid fisherman myself, I have personally observed baymen and women to be some of the hardest working individuals I have ever met; braving the elements and engaging in dawn to dusk back breaking work to provide for their families. In order to protect their way of life and the resources we all depend on, we must enforce these harvest limits and regulations or we will lose the entire fishery.”
According to court documents, Gregory Wheatley Parks, Jr., 43, was a commercial oysterman operating the F/V Melissa Hope, a fishing vessel out of Tangier Island. Parks harvested oysters out of Virginia waters in the Chesapeake Bay. As a properly licensed oysterman, Parks was aware that Virginia sets strict limits on the number of oyster bushels that an oysterman can harvest per day. Nevertheless, on numerous dates in 2015, Parks collectively harvested at least 38 bushels above the Virginia limit and transported them to Maryland for sale.
“The native American wild oyster population is a keystone species responsible for maintaining the overall health of the Chesapeake Bay ecosystem,” said Jeff Odom, Assistant Special Agent in Charge for the U.S. Fish and Wildlife Service. “This investigation focused on the most egregious of those commercial harvesters attempting to circumvent the law and should serve as notice that the USFWS will be vigilant in protecting our natural resources.”
Court records further state that Parks was required to accurately report to the Virginia Marine Resources Commission (VMRC) the number of oyster bushels he landed. On several instances, Parks filed false reports to the VMRC, underreporting the number of oyster bushels he landed. Parks has a long history of wildlife violations related to oyster harvesting. Dating back to 2008, Parks has been cited on numerous occasions for possession of oysters over the legal limit, taking oysters from polluted grounds, taking oysters out of season, and larceny of oysters from bedded grounds.
Parks pleaded guilty to one violation of the Lacey Act and faces a maximum penalty of five years in prison when sentenced on August 22. 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 Edward Grace, Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service, made the announcement after the plea was accepted by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Joseph L. Kosky and Trial Attorney Laura Steele of the Justice Department’s Environmental Crimes Section prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-14.
Suburban Tax Professional Guilty of Preparing and Filing More Than 160 Fraudulent Tax ReturnsRead the Press Release
CHICAGO — A suburban tax professional has pleaded guilty to preparing and filing more than 160 fraudulent tax returns in an attempt to bilk the Internal Revenue Service out of at least $550,000.
LAURIE HELFER, 57, of Hillside, pleaded guilty Tuesday to two counts of willfully aiding and assisting in the preparation of a fraudulent tax return. Each count is punishable by a maximum sentence of three years in federal prison. U.S. District Judge Virginia M. Kendall set sentencing for Aug. 22, 2019.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorney Carol Bell.
Helfer operated the tax-preparation businesses Laurie’s Freelance & Tax Preparation Services and The Tax Lady Laurie Inc., which were based in the western suburbs of Chicago. According to a written plea agreement, Helfer filed approximately 162 false returns for the tax years 2007 through 2010. In each of the returns, Helfer knowingly made material, false statements to obtain refunds to which her clients were not otherwise entitled. The statements included false information about employment, educational, and child care expenses. Helfer’s conduct resulted in an actual federal tax loss of approximately $54,797, and attempted losses of between $550,000 and $1.5 million, the plea agreement states.
Strongsville man charged for allegedly defrauding companies, churches, schools and others out of hundreds of thousands of dollars for work on playground renovations and installations he never completedRead the Press Release
A Strongsville man was charged in federal court after he allegedly defrauded companies, churches, schools and others out of hundreds of thousands of dollars.
Christopher M. Hardin, 37, was charged via criminal information with one count of mail fraud.
According to the information:
Hardin established American Safety Surface & Recreation LLC (ASSR) in 2011 with its principal place of business being Broadview Heights. ASSR was a playground surfacing company that operated in several states, including Ohio, New Jersey, Iowa, California, New York, Texas and elsewhere.
Hardin, between September 2011 and November 2016, defrauded clients out of approximately $172,964 by obtaining deposits for promised work on playground renovations and installations that he never completed.
Hardin ordered and obtained approximately $261,083 in playground equipment and materials from OTS Company, based in South Carolina, for which payment was not made.
Hardin subcontracted approximately $270,127 of playground renovations and installation projects to MJD’s Property Solutions, LLC, for which payment was not made.
According to the information, Hardin fraudulently misrepresented to clients the use of project deposits, the timing of project completion and issues causing delays in projects, when Hardin knew he was using client funds for purposes other than what he had promised, including purchasing a vehicle, restaurant and bar purchases, and clothing unrelated to ASSR projects
As a result of Hardin’s scheme, the following customers sustained losses in the approximate amounts listed below for deposits they provided to Hardin for work that was never performed: Plainview Co-Op Nursery School ($28,755); Hudson Valley SportsDome, Inc. ($28,380); Saint Bellarmine Church ($21,375); St. Stephan of Hungary School, New York, New York ($18,450); St. Paul Lutheran Church & School, Ogden, Utah ($6,550); the Domestic Violence and Child Advocacy Center, Cleveland, Ohio ($15,900); Norbeck Montessori, Rockville, Maryland ($6,000); Village of Dolgeville, New York ($4,000); Northfield Presbyerian Daycare Center, Northfield, Ohio ($7,125); All Kids First I & II, Vineland, New Jersey ($9,500); NORWESCAP,Inc.,Phillipsburg, New Jersey ($2,475); John Link, Thompson, Ohio ($300); Little Wonders Daycare, San Mateo, California ($6,629); Lorene Cosimo, Cummings, Iowa ($1,825) Jan & Niles Davies Learning Center, and West Haverstraw, New York: $15,700, according to the information.
If convicted, the defendant's sentence will be determined by the Court after reviewing factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Matthew B. Kall.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
South Charleston Woman Convicted of Trafficking Pure MethamphetamineRead the Press Release
CHARLESTON, W.Va. – A South Charleston woman pled guilty to a federal drug trafficking crime, announced United States Attorney Mike Stuart. Mary Haynes, 27, pled guilty to distribution of methamphetamine before United States District Judge Irene C. Berger. Haynes and her codefendant, Jason Haddox, were prominent ice methamphetamine traffickers, distributing at least 20 ounces of methamphetamine per month throughout the Kanawha Valley. Stuart commended the investigation conducted by the Metropolitan Drug Enforcement Network Team (MDENT), the Nitro Police Department, the Lincoln County Sheriff’s Department, and the South Charleston Police Department.
“Powerful, powerful meth. So many young lives are being ruined by involvement in the drug trade,” said United States Attorney Mike Stuart. “My office and our law enforcement partners are relentless in our work to protect West Virginia families by removing any and all drug dealers from our streets.”
On April 4, 2017, police investigators used a confidential informant to make a video-recorded purchase of a quarter ounce of pure methamphetamine from Haynes in South Charleston. Haddox supplied Haynes with the methamphetamine. On April 7, 2017, investigators executed a search warrant on the house Haynes and Haddox shared in South Charleston. The investigators found around two ounces of pure methamphetamine, drug paraphernalia, and thousands of dollars of drug trafficking proceeds throughout the house.
Haynes will be sentenced on August 14, 2019. She faces a mandatory minimum of ten years in prison and up to life imprisonment. Haddox was previously sentenced to 14 years’ imprisonment for his involvement. Assistant United States Attorney Drew O. Inman is handling the prosecution.
SDWVNews and USAttyStuart
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Serial Bank Robber Sentenced to Twenty Years in PrisonRead the Press Release
A Jupiter resident was sentenced to twenty years in prison for a string of bank robberies in Palm Beach and Martin Counties in 2017 and 2018.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Bruce H. Colton, State Attorney for Indian River, Martin, Okeechobee, and Saint Lucie Counties, Dave Aronberg, State Attorney for Palm Beach County, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, William D. Snyder, Sheriff, Martin County Sheriff’s Office, Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office and Daniel J. Kerr, Chief, Jupiter Police Department, made the announcement.
Ronnie Montsdeoca, 59, of Jupiter, Florida, previously pled guilty to a superseding indictment which charged three counts of bank robbery and one count of attempted bank robbery (Case No. 18-Cr-80194). U.S. District Judge Donald M. Middlebrooks sentenced Montsdeoca to a total of 240 months in prison, to be followed by 3 years of supervised release. He also ordered the defendant to pay more than $37,000 in restitution.
According to the court record, including the indictment and the defendant’s admissions at the time of the plea, Montsdeoca robbed a TD Bank in Jupiter Florida on April 21, 2017, a Wells Fargo Bank in West Palm Beach, Florida on August 27, 2018, and another TD Bank in Stuart, Florida, on September 10, 2018. Montsdeoca also attempted to rob a Bank United in Hobe Sound, Florida, shortly before the TD Bank robbery on September 10, 2018.
The defendant took, by means of intimidation during the course of the bank robberies, in excess of $37,000 from the institutions whose deposits were insured by the Federal Deposit Insurance Corporation.
U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI, Martin County Sheriff’s Office, Palm Beach County Sheriff’s Office and Jupiter Police Department in this matter. She thanked the State Attorney’s Office for Saint Lucie County and State Attorney’s Office for Palm Beach County for their assistance. The case was prosecuted by Assistant U.S. Attorney Adam McMichael and Special Assistant U.S. Attorney Christopher Hudock.
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.
San Francisco Man Sentenced to 15 Years in Prison for Production and Possession of Child PornographyRead the Press Release
SAN FRANCISCO –Joey Wong Hernandez was sentenced to 180 months in prison for production and possession of child pornography, announced United States Attorney David L. Anderson and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. The sentence was handed down by the Honorable Maxine M. Chesney, Senior U.S. District Judge.
Hernandez, 29, of San Francisco, pleaded guilty to the charges on November 14, 2018. According to his plea agreement, Hernandez possessed hundreds of images and videos of child pornography. Hernandez also produced a video of himself engaged in sex with a minor.
Specifically, Hernandez admitted that prior to February 20, 2016, he met a minor female on an online dating website who he knew was between 12 and 16 years old. On two occasions between February 20, 2016, and June 25, 2016, Hernandez convinced the minor female to engage in sexual activity with him and Hernandez recorded the sexual activity on his cellular telephone. Hernandez also admitted that he used a laptop computer, two hard drives, and a cellular telephone to store more than 600 videos and images of minors engaged in sexually explicit conduct. Hernandez acknowledged that some of the images depict minors under the age of 12—including infants and toddlers—and some are recordings of himself engaged in sexually explicit activity with minors. Further, Hernandez admitted that on three occasions between October of 2015 and April of 2016 he used the internet to distribute images and videos of child pornography.
On March 8, 2018, a federal grand jury indicted Hernandez charging him with three counts of production of child pornography, in violation of 18 U.S.C. § 2251(a); three counts of distribution of child pornography, in violation of 18 U.S.C. §§ 2252(a)(2) and (b)(1); and one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). Hernandez pleaded guilty to one count of production and one count of possession. The remaining counts were dismissed.
In addition to the prison term, Judge Chesney sentenced Hernandez to a 10-year term of supervised release. Hernandez currently is in federal custody and will begin serving his sentence immediately.
Assistant United States Attorney Sailaja M. Paidipaty is prosecuting the case with the assistance of Marina Ponomarchuk. The prosecution is the result of an investigation by HSI.
If members of the public have any information relevant to suspected child predators or suspicious activity, they should contact Homeland Security Investigations through the toll-free Tip Line at 1-866-DHS-2-ICE or complete the online tip form at: https://www.ice.gov/webform/hsi-tip-form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
San Diego Finance Executive and Real Estate Broker Sentenced to Prison for Stealing Almost $50 MillionRead the Press Release
Assistant U.S. Attorneys Emily W. Allen (619) 546-9738 and Andrew P. Young (619) 546-7981
NEWS RELEASE SUMMARY – April 25, 2019
SAN DIEGO – Financial executive Peter Cash Doye was sentenced in federal court today to 15 years in prison for his role as the “driving force” in a massive real estate loan scheme in which he and his co-conspirators stole nearly $50 million dollars from San Diego residents and lenders.
His co-defendant, Raquel Reid, a notary public and real estate broker, was previously sentenced to 65 months for her role in the fraud. The court also ordered Doye and Reid to pay more than $43 million in restitution to the victims.
During the sentencing hearing, U.S. District Judge William Q. Hayes described the defendant as “cold blooded” and the “driving force” behind an “overwhelmingly selfish act” that was motivated by “pure unmitigated greed.” He scolded the defendant for having a “callous attitude” toward his victims, and remarked about his testimony during trial. “After you said your name, I’m hard-pressed to remember anything you said that was truthful,” Judge Hayes said.
The pair were indicted on September 19, 2017 on charges of conspiracy to commit wire fraud, wire fraud, mail fraud, and aggravated identity theft. Reid was also charged with lying to a federal agent. On November 20, 2018, after a two-week trial, a jury returned a guilty verdict on all charges against both defendants. According to the indictment and the evidence introduced at trial, the defendants defrauded lenders into making enormous loans against four multi-million dollar mansions in La Jolla and Del Mar, then used forged documents to make it appear that the loans had been paid off – thereby enabling them to secure additional loans from new lenders who believed the mansions were owned “free and clear.”
Doye, a senior executive at the real estate investment firms Conix, Inc. and Variant Commercial Real Estate (“VCRE”), negotiated the financing from unsuspecting lenders and investors based on a host of lies about the collateral used to secure the loans. To pull off the scam, Doye, Reid, and their co-conspirators created forged real estate lien “releases” and recorded fraudulent records at the San Diego County Recorder’s Office, complicating the chain of title for these homes. Reid notarized the forged documents, helping to make the fraudulent paperwork appear authentic.
Doye’s business partner, Courtland Gettel, and Arizona attorney Jeffrey Greenberg, who testified at the trial on behalf of the government, previously pleaded guilty to participating in the scheme and are serving sentences of 135 and 51 months, respectively. Gettel and Greenberg were also ordered to pay more than $43 million in restitution to victims, and to forfeit the proceeds of the crime. Gettel was the owner of Conix and VCRE, which refurbished single-family homes, purchased distressed debt, and purchased and refurbished commercial real estate projects.
During trial, the government proved that Gettel, Greenberg, and Doye acquired the high-end homes in La Jolla and Del Mar by claiming they would be used as luxury rentals and investment properties—although in fact, Gettel and Doye lived in the properties along with their families. When they needed money to fund other business deals, Gettel and Doye began negotiating with new lenders, pretending that the first loans never existed or had already been paid off. Greenberg admitted that he used his expertise as a lawyer to generate and record fraudulent records, making it appear that prior loans were paid off and helping to close the fraudulent deals.
In late 2014, the lenders began to uncover the fraud and learn that their secured interests in the properties were worthless. In response to questions from these lenders, Doye, Reid and Gettel denied knowing anything about the fraudulent loans, and created yet more fraudulent documents to cover their tracks. For example, Reid destroyed her notary book and cut up her notary stamp, and then falsely reported to the California Secretary of State that her book had been lost.
“This crime was a colossal $50 million swindle by a greedy, brazen thief who squandered the stolen money on lavish parties in Las Vegas, penthouse apartments, private jets and abundant drug use,” said U.S. Attorney Robert Brewer. “The defendant’s extravagant lifestyle was funded by the hardships of his victims, who suffered health problems, emotional stress, financial uncertainty and strain on relationships. This sentence underscores the significant harm victims to and the integrity of our financial system, and is a testament to the hard work of FBI agents and prosecutors Emily Allen and Andrew Young.”
“Today, final justice has been served in this multi-million dollar loan fraud scheme. All four defendants, including Doye, who was sentenced to 15 years in custody today, are no longer able to perpetrate their deceit and lies to fulfill their personal greed,” said FBI Acting Special Agent in Charge Suzanne Turner. “The FBI remains committed to pursuing fraud schemes that erode the integrity of our financial system."
DEFENDANTS, 17CR2897-WQH
Peter Cash Doye Age: 43 San Diego, CA
Raquel Reid Age: 40 San Diego, CA
Count One (both defendants): Wire and Mail Fraud Conspiracy, in violation of 18 U.S.C. § 1349
Maximum Penalties: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture
Counts Two through Six (Doye only; both defendants as to Count Three): Wire Fraud, in violation of 18 U.S.C. § 1343
Maximum Penalties as to each count: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture
Counts Seven through Nine (Doye only as to Count Seven, both defendants as to Counts Eight and Nine): Mail Fraud, in violation of 18 U.S.C. § 1341
Maximum Penalties as to each count: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture
Counts Ten and Eleven (both defendants): Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A
Maximum Penalties: mandatory 2 years’ imprisonment, consecutive to any other term of imprisonment, $250,000 fine, $100 special assessment, restitution.
Count Twelve (Reid only): False Statements to Federal Agents, in violation of 18 U.S.C. § 1001
Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
DEFENDANTS PREVIOUSLY CHARGED
Jeffrey Greenberg, 16CR1076-WQH and 1077-WQH Age: 67 Tucson, AZ
Courtland Gettel, 16CR1099-WQH Age: 43 Coronado, CA
AGENCY
Federal Bureau of Investigation
SENTENCESRead the Press Release
Federal District Court Judge Nancy D. Freudenthal sentenced CHRISTOPHER PERFECT (a/k/a Christopher Star Perfect and a/k/a Chris Johnson), 38, of Yucca Valley, California on April 24, 2019 for felon in possession of ammunition and fugitive in possession of ammunition. Perfect was arrested in Fresno, California. He received seventy months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $500.00 fine. The Buffalo Police Department, Johnson County Sheriff’s Office and the ATF investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced DILLON KENNETH WICKS, 26, of Riverton, Wyoming on April 23, 2019 for distribution of child pornography. Wicks was arrested in Riverton, Wyoming. He received sixty months of imprisonment, to be followed by one hundred twenty months of supervised release, and ordered to pay a $100.00 fine and restitution in the amount of $5000.00. The Homeland Security Investigations investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced PAUL W. WILLS III, 33, of Mesquite, Texas on April 23, 2019 for abusive sexual contact. Wills was arrested in Bozeman, Montana. He received twelve months and one day of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $100.00 fine. The National Park Service investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced CARL LEWIS ROSS, 34, with an unknown residence, on April 24, 2019 for distribution of methamphetamine. Ross was arrested in Campbell County, Wyoming. He received seventy-eight months of imprisonment, to be followed by forty-eight months of supervised release, and ordered to pay restitution in the amount of $400.00. The Wyoming Division of Criminal Investigation investigated this case.
Real Estate Developer from Palm Beach, Florida Admits Role in Investment Fraud, Bank Fraud, Money Laundering and Tax Evasion SchemesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation in New England, announced that ROBERT V. MATTHEWS, 61, of Palm Beach Florida, pleaded guilty today in Bridgeport federal court to conspiracy, money laundering and tax evasion offenses related to multiple schemes to defraud foreign investors and financial institutions. In addition, Matthews’ wife, MARIA MATTHEWS, 52, pleaded guilty today in Bridgeport to tax evasion.
According to court documents and statements made in court, Robert Matthews was a real estate developer in charge of The Palm House Hotel (“PHH”), a property that he sought to develop in Palm Beach. Robert and Maria Matthews maintained residences in both Florida and Connecticut.
The EB-5 visa program is a federal program by which foreign nationals and their families are eligible to apply for lawful permanent resident status (commonly known as a “green card”) if they meet certain requirements by investing in a development project in the U.S. Various entities in the U.S. act as intermediaries between potential foreign investors and investment projects. One such entity, South Atlantic Regional Center, LLC (“SARC”) in Palm Beach, Florida, advertised EB-5 projects to foreign investors, collected funds from foreign investors that were earmarked for certain development projects, and made the funding available to the respective development project.
The PHH was a development project advertised by SARC to EB-5 investors between approximately 2012 and 2014. Robert Matthews purchased the PHH property in August 2006, and then lost the property in foreclosure in 2009. In August 2013, Robert Matthews reacquired control of the property through an entity called Palm House, LLC. However, Robert Matthews’ brother, Gerry Matthews, was listed in incorporation documents as owning 99 percent of Palm House, LLC, and another individual, who had secured additional financing for Robert Matthews, was listed as owning the remaining 1 percent.
In pleading guilty, Matthews admitted that he and others defrauded EB-5 investors by representing that funds from EB-5 investors would be used to develop the PHH; that certain well-known individuals would be on the PHH advisory board and certain well-known entertainers, businesspeople and politicians “will be a part of the club”; and that Gerry Matthews was a member of the Palm House, LLC management team and was the 99 percent owner of the project. EB-5 investors invested in the PHH project by providing money to bank accounts controlled by SARC. SARC, in turn, provided EB-5 money earmarked for PHH use into accounts controlled by Robert Matthews and his associates.
While Gerry Matthews was the nominal 99 percent owner of Palm House, LLC, Robert Matthews controlled the company. Robert Matthews and other used EB-5 funding for purposes not related to the PHH project, including for Robert and Maria Matthews’ personal gain. In addition, there was no evidence any of the proffered well-known individuals would be on the PHH advisory board or would be members of the club.
As part of this scheme, Robert Matthews and others moved investor funds through various bank accounts located in Connecticut and Florida. The funds were used to pay Robert and Maria Matthews’ credit card debts, and to purchase two properties located in Washington Depot, Connecticut. One of the Washington Depot properties was a property that Robert Matthews had previously lost in foreclosure. Robert Matthews, Nicholas Laudano and others conspired to purchase the property out of foreclosure by concealing both the relationship between the co-conspirators, and the source of the funds used to purchase the property.
Laudano is a construction contractor who continuously worked on the development of the PHH project between approximately 2006 and 2016. He also has operated several restaurants in Florida and Connecticut.
Since approximately 2008, Robert and Maria Matthews willfully attempted to evade paying federal income tax they owed for the 2005 and 2007 calendar years in multiple ways, including by using limited liability companies, a company bank account, and their attorney’s trust account to pay for personal expenses. For example, in approximately November 2014, Robert Matthews caused Maria Matthews to execute documents to obtain a loan from an individual with the initials K.M. The loan was secured by one of their Washington Depot properties, which, at the time, was in the name of a shell company. The proceeds of this loan were eventually disbursed into an account controlled by the Robert and Maria Matthews in the name of Mirabia LLC. Robert and Maria Matthews subsequently used the loan proceeds for personal expenses without paying any of their outstanding tax liability.
The investigation also revealed that, between approximately 2007 and 2009, Robert Matthews conspired with others in a scheme to defraud T.D. Banknorth, N.A. (now TD Bank, N.A.), out of the proceeds of a construction loan by making material misrepresentations to the bank in connection with the development of the Point Breeze Hotel in Nantucket, Massachusetts. In addition, in June 2010, Robert Matthews conspired with others in a scheme to defraud TD Bank out of its ability to foreclose on another parcel of property in Nantucket owned by Matthews.
Finally, in pleading guilty, Robert Matthews admitted that, between approximately December 2010 and January 2013, he conspired with others to defraud JP Morgan Chase Bank N.A. by misappropriating insurance proceeds earmarked for repair of one of his Washington Depot properties.
Robert Matthews pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud, an offense that carries a maximum term of imprisonment of 30 years; one count of illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years, and one count of tax evasion, an offense that carries a maximum term of imprisonment of five years.
Maria Matthews, who is also known as “Mia Matthews,” pleaded guilty to one count of tax evasion.
Robert and Maria Matthews are released on bonds pending sentencing. Sentencing dates are not scheduled.
On March 7, 2018, Gerry Matthews, of Middlebury, Connecticut, pleaded guilty to one count of conspiracy to commit wire fraud. On March 12, 2018, Laudano, of Boynton Beach, Florida, pleaded guilty to one count of conspiracy to commit bank fraud and one count of illegal monetary transactions. They await sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and David E. Novick.
Real Estate Developer Admits Role in Investment Fraud, Bank Fraud, Money Laundering and Tax Evasion SchemesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation in New England, announced that ROBERT V. MATTHEWS, 61, of Palm Beach Florida, pleaded guilty today in Bridgeport federal court to conspiracy, money laundering and tax evasion offenses related to multiple schemes to defraud foreign investors and financial institutions. In addition, Matthews’ wife, MARIA MATTHEWS, 52, pleaded guilty today in Bridgeport to tax evasion.
According to court documents and statements made in court, Robert Matthews was a real estate developer in charge of The Palm House Hotel (“PHH”), a property that he sought to develop in Palm Beach. Robert and Maria Matthews maintained residences in both Florida and Connecticut.
The EB-5 visa program is a federal program by which foreign nationals and their families are eligible to apply for lawful permanent resident status (commonly known as a “green card”) if they meet certain requirements by investing in a development project in the U.S. Various entities in the U.S. act as intermediaries between potential foreign investors and investment projects. One such entity, South Atlantic Regional Center, LLC (“SARC”) in Palm Beach, Florida, advertised EB-5 projects to foreign investors, collected funds from foreign investors that were earmarked for certain development projects, and made the funding available to the respective development project.
The PHH was a development project advertised by SARC to EB-5 investors between approximately 2012 and 2014. Robert Matthews purchased the PHH property in August 2006, and then lost the property in foreclosure in 2009. In August 2013, Robert Matthews reacquired control of the property through an entity called Palm House, LLC. However, Robert Matthews’ brother, Gerry Matthews, was listed in incorporation documents as owning 99 percent of Palm House, LLC, and another individual, who had secured additional financing for Robert Matthews, was listed as owning the remaining 1 percent.
In pleading guilty, Matthews admitted that he and others defrauded EB-5 investors by representing that funds from EB-5 investors would be used to develop the PHH; that certain well-known individuals would be on the PHH advisory board and certain well-known entertainers, businesspeople and politicians “will be a part of the club”; and that Gerry Matthews was a member of the Palm House, LLC management team and was the 99 percent owner of the project. EB-5 investors invested in the PHH project by providing money to bank accounts controlled by SARC. SARC, in turn, provided EB-5 money earmarked for PHH use into accounts controlled by Robert Matthews and his associates.
While Gerry Matthews was the nominal 99 percent owner of Palm House, LLC, Robert Matthews controlled the company. Robert Matthews and other used EB-5 funding for purposes not related to the PHH project, including for Robert and Maria Matthews’ personal gain. In addition, there was no evidence any of the proffered well-known individuals would be on the PHH advisory board or would be members of the club.
As part of this scheme, Robert Matthews and others moved investor funds through various bank accounts located in Connecticut and Florida. The funds were used to pay Robert and Maria Matthews’ credit card debts, and to purchase two properties located in Washington Depot, Connecticut. One of the Washington Depot properties was a property that Robert Matthews had previously lost in foreclosure. Robert Matthews, Nicholas Laudano and others conspired to purchase the property out of foreclosure by concealing both the relationship between the co-conspirators, and the source of the funds used to purchase the property.
Laudano is a construction contractor who continuously worked on the development of the PHH project between approximately 2006 and 2016. He also has operated several restaurants in Florida and Connecticut.
Since approximately 2008, Robert and Maria Matthews willfully attempted to evade paying federal income tax they owed for the 2005 and 2007 calendar years in multiple ways, including by using limited liability companies, a company bank account, and their attorney’s trust account to pay for personal expenses. For example, in approximately November 2014, Robert Matthews caused Maria Matthews to execute documents to obtain a loan from an individual with the initials K.M. The loan was secured by one of their Washington Depot properties, which, at the time, was in the name of a shell company. The proceeds of this loan were eventually disbursed into an account controlled by the Robert and Maria Matthews in the name of Mirabia LLC. Robert and Maria Matthews subsequently used the loan proceeds for personal expenses without paying any of their outstanding tax liability.
The investigation also revealed that, between approximately 2007 and 2009, Robert Matthews conspired with others in a scheme to defraud T.D. Banknorth, N.A. (now TD Bank, N.A.), out of the proceeds of a construction loan by making material misrepresentations to the bank in connection with the development of the Point Breeze Hotel in Nantucket, Massachusetts. In addition, in June 2010, Robert Matthews conspired with others in a scheme to defraud TD Bank out of its ability to foreclose on another parcel of property in Nantucket owned by Matthews.
Finally, in pleading guilty, Robert Matthews admitted that, between approximately December 2010 and January 2013, he conspired with others to defraud JP Morgan Chase Bank N.A. by misappropriating insurance proceeds earmarked for repair of one of his Washington Depot properties.
Robert Matthews pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud, an offense that carries a maximum term of imprisonment of 30 years; one count of illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years, and one count of tax evasion, an offense that carries a maximum term of imprisonment of five years.
Maria Matthews, who is also known as “Mia Matthews,” pleaded guilty to one count of tax evasion.
Robert and Maria Matthews are released on bonds pending sentencing. Sentencing dates are not scheduled.
On March 7, 2018, Gerry Matthews, of Middlebury, Connecticut, pleaded guilty to one count of conspiracy to commit wire fraud. On March 12, 2018, Laudano, of Boynton Beach, Florida, pleaded guilty to one count of conspiracy to commit bank fraud and one count of illegal monetary transactions. They await sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and David E. Novick.
Ravenna man indicted for allegedly robbing four stores in Portage County earlier this yearRead the Press Release
A Ravenna man was indicted in federal court for robbing four stores in Portage County earlier this year.
Matthew L. Shilling, 31, was charged with three counts of Hobbs Act robbery and one count of bank robbery.
The indictment alleges Shilling robbed the following locations: Circle K on East Main Street in Ravenna on February 15; BP gas station on State Highway 14 in Ravenna on February 18; Circle K on West Main Street in Ravenna on March 1 and Chase Bank on Waterloo Road in Randolph on March 5.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the FBI, Ravenna Police Department and the Portage County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Christopher Joyce.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
ProHealth Care, Inc. Agrees to Settle Allegations under the Americans with Disabilities ActRead the Press Release
United States Attorney Matthew D. Krueger announced today that the United States settled allegations that ProHealth Care, Inc. (“ProHealth”) discriminated against patients with hearing impairments in violation of the Americans with Disabilities Act (“ADA”).
ProHealth is a community-based health care system and offers a full range of services, such as fitness and wellness, primary care and specialty care, hospital care, rehabilitation care, and others. Title III of the ADA prohibits public accommodations, including healthcare providers, from discriminating against people with disabilities, including individuals with hearing impairments. Following receipt and investigation of complaints, the government found that ProHealth failed to provide effective communication to a patient and her companion—both of whom are deaf and communicate primarily through American Sign Language—during the patient’s treatment at Oconomowoc Memorial Hospital in February 2017. Specifically, ProHealth failed to offer appropriate auxiliary aids and services, such as an American Sign Language interpreter, to permit effective communication between ProHealth’s medical staff and the complainants. Instead, ProHealth’s medical staff relied on the complainants’ minor child to interpret for the medical staff and the complainants for approximately three hours during an emergency room visit.
Under the settlement agreement, ProHealth will pay $15,000 to Complainant No. 1 and $5,000 to Complainant No. 2. In addition, ProHealth has reviewed and revised, as appropriate, its policy on Communication with Persons with Hearing Impairments. ProHealth also will conduct additional training on the ADA’s effective communication requirements.
“The Department of Justice is fully committed to enforcing the ADA,” said U.S. Attorney Krueger. “It is hard to imagine another setting besides a hospital in which effective communication is more important. We commend the complainants for bringing attention to the lack of auxiliary aids and services they were offered. This settlement will help ensure that other individuals with disabilities receive the assistance they need to communicate well with their healthcare providers.”
This matter was handled by Assistant United States Attorney Michael A. Carter. For more information on the ADA or this settlement, visit www.ada.gov. Individuals interested in finding out more about the ADA may also call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD). ADA complaints may be filed online at www.ada.gov/complaint/
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Pottawattamie County Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on April 24, 2019, Kenneth Ryan Hartwell, age 32, was sentenced by United States District Court Senior Judge James E. Gritzner for Possession with Intent to Distribute Methamphetamine. Hartwell was sentenced 154 months in prison, to be followed by a term of supervised release for five years.
In April 2018, Council Bluffs Police stopped a vehicle leaving an area that police were dispatched to regarding reports of vehicle burglaries. Hartwell was the driver and only occupant in the vehicle. Law enforcement determined Hartwell had a suspended license. When Hartwell was asked to exit the vehicle, police discovered marijuana and a scale in the driver’s side door panel. In a search subsequent to the stop, Council Bluffs Police located five pounds of methamphetamine and over $16,000 in cash.
This matter was investigated by the Council Bluffs Police Department and Southwest Iowa Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Ponemah Man Sentenced to 100 Months in Prison for Possessing A Sawed-Off ShotgunRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of RANDALL DEAN JONES, 28, to 100 months in prison for illegally possessing a sawed-off shotgun. JONES, who pleaded guilty on December 20, 2018, to one count of possession of an unregistered firearm, was sentenced today before Judge Eric C. Tostrud in U.S. District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, on August 1, 2018, law enforcement officers were dispatched to an apartment complex located in Thief River Falls, following a report of a fight. When officers arrived, JONES was yelling and banging on an apartment door. After detaining JONES, officers located an Iver Johnson Arms and Cycle Works, Excel model, 20-gauge shotgun with a shortened barrel in the apartment hallway beneath a sweatshirt on the floor. JONES admitted to possessing the unregistered, modified shotgun. JONES has two prior felony convictions, including aggravated assault in Cass County, North Dakota and assault with a dangerous weapon in U.S. District Court in the District of Minnesota, which prohibit him from possessing firearms.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Thief River Falls Police Department, the Pennington County Sheriff’s Office, and the Red Lake Police Department.
Assistant United States Attorney Deidre Y. Aanstad prosecuted the case.
Defendant Information:
RANDALL DEAN JONES, 28
Ponemah, Minn.
Convicted:
- Possession of an unregistered firearm, 1 count
Sentenced:
- 100 months in prison
- Three years of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Pittsburgh Man Charged with Coercion and Enticement of a MinorRead the Press Release
PITTSBURGH, PA - A criminal complaint has been filed in federal court against a resident of Pittsburgh, Pa., charging him with coercion and enticement of a minor, United States Attorney Scott W. Brady announced today.
The one-count Criminal Complaint named Brian L. Turek, 38, as the sole defendant. Turek made his initial appearance in federal court yesterday. He is scheduled to have a preliminary examination and detention hearing on Friday, April 26, 2019, at 11 a.m. before Magistrate Judge Maureen P. Kelly.
According to the Criminal Complaint, from on or about February 6, 2019 through April 24, 2019, Turek used the Internet and a cellphone to knowingly attempt to persuade, induce, entice, or coerce an individual who had not attained the age of 18 years to engage in sexual activity. During that time period, Turek exchanged messages with an individual, whom he believed to be 13 years of age, to arrange a meeting to engage in sexual activity. When Turek arrived for the meeting at a Dormont T-station, he was taken into custody. Turek had been unknowingly communicating with an undercover FBI agent.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The law provides for a minimum term of imprisonment of not less than 10 years and a maximum total sentence of life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation conducted the investigation leading to the charges in this case.
A criminal complaint is only a charge and is not evidence of guilt. A defendant may not be prosecuted unless, within 30 days, a grand jury has found probable cause to believe that the defendant is guilty of an offense.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and
local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Philadelphia Bookkeeper Convicted of Embezzling Almost $1.6 Million from Former EmployerRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Peter Goodchild, 56, of Philadelphia, PA, was convicted today at trial on charges of embezzling almost $1.6 million from his former employer, QwikSource, over a ten-year period beginning in 2005 and ending in 2015 through a wire fraud scheme. Goodchild was also convicted of money laundering, aggravated identity theft, and filing false income tax returns during this period.
Goodchild, former bookkeeper for QwikSource LLC/GMI Technical Sales LLC of Florham Park, NJ, opened a PayPal account using his employer’s name, transferred funds from QwikSource’s bank account to that PayPal account, from that PayPal account to another PayPal account belonging to his girlfriend, and from his girlfriend’s PayPal account to one or more of his personal bank accounts. The defendant further concealed the embezzlement by making financial entries on files he maintained for QwikSource that increased the cost of goods sold by the same amount of the money he wired from QwikSource’s account to the PayPal accounts and his personal bank accounts.
Further, Goodchild failed to pay taxes on his wealth. Between 2010 and 2015, he embezzled at least $854,800 and had unreported income of $231,100 in 2010, $215,100 in 2011, $83,600 in 2012, $125,000 in 2013, $152,000 in 2014, and $48,000 in 2015. His actions created a tax loss of approximately $240,648.
Goodchild was charged with and convicted on 48 counts of wire fraud, 10 counts of money laundering, six counts of filing a false income tax return, and one count of aggravated identity theft. Wire fraud and money laundering are punishable by up to 20 years in prison. Filing a false tax return is punishable by up to three years. Aggravated identity theft is punishable by a mandatory two years of prison that must follow any term imposed on the other counts. Additionally, Goodchild will be subject to restitution and/or forfeiture of money and substitute assets totaling $1,589,315.
“My office takes offenses like embezzlement, tax fraud and money laundering very seriously,” said U.S. Attorney McSwain. “The defendant stole more than a million dollars by abusing his position handling finances for his former employer. My Office will continue to work with our law enforcement partners to protect innocent individuals and businesses from being victimized by this type of fraud.”
“The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel,” said Guy Ficco, Special Agent in Charge. “As we often see, federal tax laws are normally violated in these types of cases and IRS CI is committed to ensuring that everyone pays their fair share.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Anita Eve.
Pearl Man Found Guilty of Attempting to Acquire a Firearm by FraudRead the Press Release
Jackson, Miss. – Michael Wayne Pearson, 48, of Pearl, was found guilty yesterday, after a three day trial before U.S. District Judge Henry T. Wingate, of attempting to acquire a firearm by making fraudulent statements on a federal background check form and causing a federal firearms licensee to keep false information, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 24, 2018, Pearson attempted to purchase a firearm from a gun shop in Pearl, Mississippi. He completed and signed ATF Form 4473 while at the gun shop as part of the federally required background check process. The form requires the firearm purchaser to designate whether they have ever been committed to a mental institution. Pearson fraudulently checked "No" and signed the form, certifying that his false answer was truthful. Under federal law, it is unlawful for a person who has been judicially committed involuntarily to either possess or purchase a firearm.
Pearson had previously been judicially committed for mental treatment by the Chancery Court of Rankin County. The firearm purchase was denied after the National Instant Criminal Background Check System rejected his attempted purchase due to his previous commitment for mental treatment.
Pearson was charged in a federal indictment on December 11, 2018, with making a false statement in an attempt to acquire a firearm and giving false information to a federal firearm licensee.
Pearson will be sentenced by Judge Wingate on July 18, 2019, and faces a maximum penalty of fifteen years in prison and $500,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Charles W. Kirkham and Lynn Murray.
Pain Management Clinics Settle Medicare Civil Fraud ClaimsRead the Press Release
RICHMOND, Va. – National Spine and Pain Centers (NSPC), and Physical Medicine Associates (PMA), with pain management clinics in northern Virginia, Glen Allen and Fredericksburg, have agreed to pay approximately $3.3 million to settle civil fraud allegations.
The settlement resolves civil fraud allegations that defendants billed Medicare and other federal healthcare providers for medical services performed by physician assistants and nurse practitioners as if physicians had provided the services, submitted claims for urine drug tests in violation of the Stark Law and/or the Anti-Kickback Statute, and ordered medically unnecessary urine drug tests.
The settlement resolves a lawsuit filed in the U.S. District Court for the Eastern District of Virginia by a former PMA physician assistant under the qui tam, or whistleblower, provisions of the False Claims Act. Under the False Claims Act, private citizens, also known as relators, can bring a suit on behalf of the United States and share in any recovery. Under the False Claims Act, relators are awarded 15 to 25 percent of the proceeds of the settlement amount depending on the extent to which the relator substantially contributed to the recovery.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Department of Health and Human Services Office of Inspector General, the U.S. Office of Personnel Management Office of the Inspector General, and the Defense Criminal Investigative Service Office of Inspector General.
The matter was investigated by Assistant U.S. Attorney Robert McIntosh. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Owner of Queens Karaoke Bar Sentenced to Prison for Failure to Pay Employment TaxesRead the Press Release
A resident of Queens, New York, was sentenced today to 12 months and one day in prison for failing to collect and pay employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Kae Wook Lee was the sole owner and chief executive officer of Mona Lisa 7 Corporation, through which he operated a karaoke bar in the Flushing neighborhood of Queens. Between 2011 and 2013, Lee diverted some of his karaoke bar’s receipts to bank accounts held in the names of shell corporations he created. Lee then withdrew funds from those bank accounts to pay employees’ wages in cash without collecting, accounting for, or paying over employment taxes due to the Internal Revenue Service (IRS). Lee concealed the cash payroll from his accountant and signed false tax returns that underreported employee wages and employment taxes owed.
In addition to the term of imprisonment imposed, the court ordered Lee to serve two years of supervised release and pay $612,500 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Mark Kotila and Sean Green, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
Operators of Arizona Business Charged in Telemarketing-Related Fraud and Identity Theft Scheme Aimed at Senior CitizensRead the Press Release
Two owners of an Arizona business were charged in an indictment unsealed today for overseeing a scheme to forge hundreds of thousands of counterfeit documents containing improperly obtained personal information, primarily relating to senior citizens, which they allegedly sold to their clients, who then allegedly provided this information to telemarketers.
Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Jill Sanborn of the FBI’s Minneapolis Field Office, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office, Acting Special Agent in Charge Joseph Carrico of the FBI’s Phoenix Field Office and Special Agent in Charge Gary Loeffert of the FBI’s Buffalo Field Office made the announcement.
Anthony J. Pavone, 44, of Scottsdale, Arizona, and Joseph E. DiPrima, 49, of Penfield, New York, were charged in an indictment filed on April 23, 2019 in the District of Arizona with one count of conspiracy to commit wire fraud, one count of wire fraud, one count of conspiracy to commit identity theft, seven counts of identity theft, and seven counts of aggravated identity theft.
According to the indictment, Pavone and DiPrima operated a Phoenix-based business called Hybar Media (Hybar). Hybar specialized in selling “sweepstakes leads,” which are documents listing the phone numbers and personal information of individuals who have responded to mass mailings notifying recipients that they may have won, or were likely to win, expensive prizes and large cash payouts.
The indictment alleges that beginning in approximately 2013, Pavone and DiPrima acquired lists of names and contact information for thousands of people—primarily senior citizens—and used this information to create fake sweepstakes leads, which they then sold to their clients as authentic. The indictment further alleges that Pavone and DiPrima directed a team of employees and associates to write the personal information of the victims onto the counterfeit sweepstakes forms, even though the victims had not agreed to this use, and even though many of the victims had never responded to a sweepstakes mailing. According to the indictment, the counterfeit sweepstakes leads were then sold to Pavone and DiPrima’s clients. Many of these clients then contacted the people named in the leads. Other clients provided the leads to telemarketers, who used them to contact the people named therein.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI is investigating this matter. Trial Attorneys Timothy A. Duree and Philip Trout of the Criminal Division’s Fraud Section are prosecuting the case.
Nine Defendants Arrested in New York, Florida, and Texas for Multimillion-Dollar Wire Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James C. Spero, Special Agent in Charge of the Tampa, Florida, Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today that nine defendants, OLUWASEUN ADELEKAN, a/k/a “Sean Adelekan,” OLALEKAN DARAMOLA, SOLOMON ABUREKHANLEN, GBENGA OYENEYIN, ABIOLA OLAJUMOKE, TEMITOPE OMOTAYO, BRYAN EADIE, ALBERT LUCAS, and ADEMOLA ADEBOGUN, were arrested for defrauding businesses and individuals of more than $3.5 million through business email compromises, a Russian oil scam, and a romance scam.
U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants deployed three different email schemes to defraud their victims. The common denominator in all three schemes was the defendants’ alleged fleecing of their victims through fictitious online identities. The schemes allegedly earned the defendants $3.5 million – and also arrests on federal felony charges.”
HSI Special Agent-in-Charge James C. Spero said: “A transnational criminal organization allegedly conducting illicit domestic and international wire fraud has been dismantled thanks to the hard work of HSI Tampa and Special Agents from the U.S. Attorney’s Office for the Southern District of New York. This case illustrates the unique investigative authority and international reach of HSI.”
As alleged in the Indictment[1] unsealed today from at least in or about July 2016, up to and including the present, the defendants participated in a scheme to defraud businesses and individuals through several categories of false and misleading representations, including but not limited to:
- Sending victims email messages that appeared to be, but were not, from legitimate business counterparties that included instructions to the victims to wire payment to those seemingly legitimate business counterparties into bank accounts that were actually under the control of, and/or maintained by, ADELEKAN, DARAMOLA, ABUREKHANLEN, OYENEYIN, OLAJUMOKE, OMOTAYO, EADIE, LUCAS, and ADEBOGUN (the “Business Email Compromise Scam”);
- Sending email messages and text messages to at least one victim offering an opportunity to invest in oil stored in Russian oil tank farms conditioned on that victim wiring upfront payments into bank accounts purportedly affiliated with the purported oil investment but actually opened by and under the control of ABUREKHANLEN, OLAJUMOKE, and OYENEYIN (the “Russian Oil Scam”); and
- Sending email messages and text messages to at least one victim from an individual (or individuals) purporting to be a female with romantic intentions toward the victim requesting, further to establishing a romantic relationship, the wiring of payment into a bank account under the control of OMOTAYO (the “Romance Scam”).
In reliance on the foregoing false and misleading representations, the victims of the Business Email Scam, Russian Oil Scam, and Romance Scam wired or otherwise transferred in excess of $3.5 million into bank accounts opened in the names of shell companies and under the control of and/or maintained by the defendants.
ABUREKHANLEN was arrested yesterday, April 24, 2019, in the Bronx, New York, and will be presented before U.S. Magistrate Judge Henry B. Pitman today. ADELEKAN, OMOTAYO, LUCAS, EADIE, and ADEBOGUN were arrested earlier this morning in New York, New York, and will also be presented today before Judge Pitman. OLAJUMOKE and OYENEYIN were arrested earlier this morning in Florida and will be presented in the Southern District of Florida later today. DARAMOLA was arrested earlier this morning in Texas and will be presented in the Western District of Texas later today.
* * *
The defendants are each charged in the Indictment with one count of conspiring to commit wire fraud. Each defendant faces a maximum potential sentence of 20 years in prison. A chart containing names, age, place of residence, and nationality of the defendants is set forth below.
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 the Special Agents from the U.S. Attorney’s Office for the Southern District of New York and HSI.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Daniel H. Wolf is 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.
Defendant
Age
Place of Residence
Oluwaseun “Sean” Adelekan
36
New York, New York
Olalaken Daramola
35
Austin, Texas
Solomon Aburekhanlen
32
New York, New York
Gbenga Oyeneyin
32
Aventura, Florida
Abiola Olajumoke
46
Aventura, Florida
Temitope Omotayo
36
New York, New York
Bryan Eadie
35
New York, New York
Albert Lucas
29
New York, New York
Ademola Adebogun
38
New York, New York
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
New Jersey Man Sentenced for Heroin ConspiracyRead the Press Release
BOSTON – A former New Jersey firefighter was sentenced yesterday in federal court in Worcester in connection with a heroin conspiracy.
Carlos Jimenez, 52, of Englishtown, N.J., was sentenced by U.S. District Court Judge Timothy S. Hillman to five years in prison and four years of supervised release. In December 2018, Jimenez and co-conspirator Ivan Cruz-Rivera, 50, of Dorado, P.R., were each convicted after a 12-day trial of one count of possession with intent to distribute heroin and distribution of more than 100 grams of heroin, and one count of conspiracy to possess with intent to distribute heroin and to distribute heroin. Cruz-Rivera was found responsible for more than 100 grams of heroin with regards to the conspiracy charge. He was sentenced on April 22, 2019, to 76 months in prison and four years of supervised release.
On Oct. 4, 2013, federal agents were surveilling garages on Union Street in Leominster where they believed drugs were being sold. The agents observed two men in a Lexus with New Jersey plates entering the property and leaving over 90 minutes later. After the Lexus left, an individual at the garage sold heroin to a cooperating source for $7,500.
A law enforcement officer subsequently followed the Lexus and stopped the vehicle in Sturbridge after the driver committed a traffic violation. The trooper observed that the driver and passenger were visibly nervous – the driver’s hands were trembling and the passenger was avoiding eye contact and fidgeting. The driver provided the trooper with a New Jersey license and conspicuously displayed his firefighter badge, which identified him as Carlos Jimenez, and the passenger, Cruz-Rivera, presented a Puerto Rican identification card. When questioned about the purpose of the trip to Massachusetts, Jimenez gave conflicting answers and said that they had just come from Lawrence. Jimenez denied having weapons or drugs in the car, but indicated that his passenger had some cash in the car. When Cruz-Rivera was questioned about transporting large sums of cash in the car, he gave evasive answers before finally stating that there was $1,000 in the car. After Jimenez consented to a vehicle search, the trooper found $44,000 in a black bag in the back seat of the Lexus.
The cash was seized, but Jimenez and Cruz-Rivera were released. Subsequently, a cooperating witness provided law enforcement with information regarding Jimenez and Cruz-Rivera’s drug trafficking activity. In approximately 2012, the cooperating witness began purchasing heroin from Cruz-Rivera. On Oct. 4, 2013, Jimenez told the cooperator that he drove for the drug delivery because it was less likely that he would get in trouble if they were pulled over because he was a firefighter.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; Fitchburg Police Chief Ernest Martineau; Leominster Interim Police Chief Michael Goldman; and Lunenburg Police Chief James P. Marino made the announcement today. Assistant U.S. Attorneys Michelle L. Dineen Jerrett and William F. Abely of Lelling’s Worcester Branch Office prosecuted the case.
New Jersey Man Pleads Guilty to Federal Charges for $3.5 Million Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – Mehul Khatiwala, age 37, of Voorhees, New Jersey, pleaded guilty today to conspiracy to commit bank fraud and to three counts of bank fraud, in connection with a scheme to fraudulently obtain loans from Cecil Bank to purchase hotels and a multifamily residential property, resulting in losses of more than $3.5 million.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Robert Manchak of the Federal Housing Finance Agency (FHFA), Office of Inspector General; Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation (FDIC); Special Inspector General Christy Goldsmith Romero of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and Inspector General Hannibal “Mike” Ware of the Small Business Administration - Office of Inspector General.
“Mehul Khatiwala and his co-conspirators submitted false statements and fraudulent documentation in order to obtain more than $15 million in loans from Cecil Bank, much of which was guaranteed by the SBA.” said U.S. Attorney Robert K. Hur. “The defendants used deceit to steal millions of dollars from the victims, which ended up including not only the bank but the American taxpayers. Federal law enforcement are committed to prosecuting and deterring this type of costly fraud.”
According to his plea agreement, from February 2011 through January 2014, Khatiwala and two co-conspirators executed a scheme to defraud Cecil Bank, the Small Business Administration (SBA), and other financial institutions by misrepresenting material facts in order to obtain financing for the purchase of two hotels and a multifamily residential property. The defendant defaulted on the loans, causing losses to Cecil Bank and the SBA of more than $3.5 million. According to the indictment and information presented at today’s plea hearing, on December 23, 2008, Cecil Bank’s holding company, Cecil Bankcorp, Inc., received an $11.5 million bailout from the Troubled Asset Relief Program (TARP).
Specifically, beginning in approximately April 2011, Khatiwala and Conspirator A made plans to apply for a $5 million loan at Cecil Bank to purchase the Memphis Airport Hotel in Memphis, Tennessee, as well as a $1.6 million loan to renovate that hotel. In order to obtain a loan, Khatiwala concealed Conspirator A’s 80% ownership of the borrowing entity because Conspirator A had already reached his legal lending limit at Cecil Bank. In May 2011, Cecil Bank’s Board of Directors approved the $5 million loan, with the condition that it be guaranteed by the SBA. The SBA required Khatiwala, as the purported 100% owner of the borrowing entity, to show that he had equity in the borrowing entity, or cash on hand of approximately $1.8 million. Conspirator B, who was an employee at another bank, falsely verified that Khatiwala had over $2 million on deposit at the co-conspirator’s bank. Khatiwala admitted that he signed and submitted this statement, which he knew to be false. The SBA approved its 75% guarantee of the $5 million loan funded by Cecil Bank. The loan went into default in January 2015.
Khatiwala and others owned the Best Western Hotel in York, Pennsylvania. In 2007, they refinanced a loan for this property in the amount of $6.635 million. In early 2010, Khatiwala and his co-owners became delinquent on the loan and began discussions with the loan servicing company. In August 2011, Khatiwala reached an agreement with the loan servicer to accept a discounted payoff of $3.625 million on the unpaid principal balance of approximately $6.6 million. Khatiwala submitted fraudulent documentation and a fraudulent settlement statement to the loan servicer showing that the funds were being provided by a private lender. In fact, Khatiwala had arranged for the sale of the hotel to related parties for the sum of $4.3 million. As early as April 2011, prior to the time the defendant made the misrepresentations to the loan servicer to negotiate the payoff, he began implementing the second step of his short-sale fraud scheme by arranging the sale of the hotel to Person B and one of Khatiwala’s employees. Khatiwala fraudulently obtained a $3.225 million loan from Cecil Bank, which was guaranteed by the SBA. During the loan application review and underwriting process performed by Cecil Bank and the SBA, Khatiwala submitted false documents as to the ownership of the selling and purchasing entities, as well as false financial statements for the purchasers. Khatiwala knew that the funds paid at closing would come from Khatiwala’s own personal bank account and other businesses, not from the purchasers, as was falsely represented to the bank and the SBA, in order to obtain approval of the loan. As a result of this short-sale fraud, the original holder of the note on the Best Western Hotel lost $675,000, which instead went to Khatiwala.
Finally, Khatiwala admitted that beginning in February 2011, he negotiated the purchase of a multifamily residential property in Perryville, Maryland. In order to obtain the loan, he established a company to serve as the borrowing and purchasing entity, representing to Cecil Bank that Persons A and B, a husband and wife, were the 100% owners of the company, and Khatiwala was the manager. In fact, Conspirator A owned 50% of the company and agreed to serve as guarantor on the loan. The bank approved a $7,122,500 loan for the purchase of the property with Persons A and B as the 100% owners of the purchasing entity. On about March 28, 2011, several days before settlement, Khatiwala e-mailed to Conspirator A an Amended and Restated Operating Agreement reflecting Conspirator A’s 50% interest in the property and his agreement to indemnify Persons A and B for any loss, cost, liability or expense arising in connection with any enforcement of Cecil Bank’s rights under the loan guarantee agreement. Khatiwala, Conspirator A, and Persons A and B signed the Amended Agreement; however, that material fact and document were never disclosed to Cecil Bank before or after the settlement, thus concealing Conspirator A’s ownership interest in the property. As early as February 2012, the loan payments of approximately $29,000 per month became delinquent and the loan went into default. Cecil Bank ultimately sold the note to a private lender for $3.252 million in lieu of foreclosure, incurring a loss of $3,583.170.
Khatiwala faces a maximum sentence of 30 years in prison on each of the four counts. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 10, 2019, at 2:30 p.m.
United States Attorney Robert K. Hur commended the FHFA, the FDIC, SIGTARP, and the SBA-OIG, for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who are prosecuting the case.
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Nebraska Man Sentenced in McAllen Bank RobberyRead the Press Release
McALLEN, Texas – A 38-year-old resident of Omaha, Nebraska, man has been ordered to federal prison for more than 18 years for his conviction of bank robbery, announced U.S. Attorney Ryan K. Patrick. Kenneth S. Jones pleaded guilty Feb. 4, 2019, admitting he entered the Greater State Bank in McAllen and announced “This is a robbery!”
Today, U.S. District Judge Micaela Alvarez found Jones to be a career offender based on this and his other two federal drug trafficking convictions. He received a sentence of 220 months in federal prison to be immediately followed by five years of supervised release.
“This is not a joke,” Jones said as he entered the bank. “Put the money on the counter. If you don’t do it, I’m going to shoot you!” Fearful for their lives, employees handed over approximately $10,000 in U.S. currency and several marked bills. Jones then fled the scene.
Authorities were able to track Jones back to his hotel and arrested him the same day. A subsequent search of the hotel recovered the money stolen from the bank.
Jones has been in custody since his arrest in where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The McAllen Police Department and FBI conducted the investigation. Assistant U.S. Attorneys Robert L. Guerra Jr. is prosecuting the case.
Monongalia County man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Lemar Sheldon Conliffe, of Morgantown, West Virginia, has admitted to a drug charge, United States Attorney Bill Powell announced.
Conliffe, also known as “AB,” age 43, pled guilty to one count of “Aiding and Abetting Distribution of Cocaine Base.” Conliffe admitted to working with another to sell cocaine base in April 2018 in Monongalia County.
Conliffe faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the cases on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Merrillville Man Sentenced to 78 Months in PrisonRead the Press Release
HAMMOND – Stacy Newlin, 57 years old, of Merrillville, Indiana, was sentenced by District Court Judge Philip P. Simon after he pled guilty to possession and receipt of child pornography, announced U.S. Attorney Kirsch.
Judge Simon sentenced Newlin to 78 months in prison followed by 10 years of supervised release and ordered him to pay $18,000 in restitution to his victims.
According to court documents, Newlin possessed 933 still images and 82 videos of child pornography. Investigators determined that, since 2007, Newlin had systematically downloaded pornographic images from the internet. Many of the pornographic images showed children under the age of 12 years old.
This case was investigated by the FBI/GRIT and prosecuted by Assistant United States Attorney Alexandra McTague.
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Massachusetts District Court Judge and Court Officer Indicted for Obstruction of JusticeRead the Press Release
BOSTON – A Massachusetts District Court Judge and Trial Court Officer were indicted today in federal court in Boston on obstruction of justice charges for preventing an ICE Officer from taking custody of an alien defendant.
Shelley M. Richmond Joseph, 51, of Natick, who was appointed as a Massachusetts District Court Judge in November 2017, and Wesley MacGregor, 56, of Watertown, a former Trial Court Officer since 1993, were indicted on one count of conspiracy to obstruct justice and two counts of obstruction of justice – aiding and abetting. MacGregor was also charged with one count of perjury.
“This case is about the rule of law,” said United States Attorney Andrew E. Lelling. “The allegations in today’s indictment involve obstruction by a sitting judge, that is intentional interference with the enforcement of federal law, and that is a crime. We cannot pick and choose the federal laws we follow, or use our personal views to justify violating the law. Everyone in the justice system – not just judges, but law enforcement officers, prosecutors, and defense counsel – should be held to a higher standard. The people of Massachusetts expect that, just like they expect judges to be fair, impartial and to follow the law themselves.”
“When we as officers of the law are confronted with an abuse within our system, we take those allegations seriously. Any conduct which severs the underlying trust that the citizens of this Commonwealth place in those who hold positions of power and authority is a stain on all who swear an oath to protect and serve, with honor and integrity,” said Peter C. Fitzhugh, Special Agent in Charge, U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) Boston. “The people of this country deserve nothing less than to know that their appointed and elected representatives are working on their behalf, while adhering to and enforcing the rule of law, not a personal agenda. The special agents of Homeland Security Investigations remain committed to upholding our promise to the public, without compromise.”
“The actions of the judge in this incident are a detriment to the rule of law and highly offensive to the law enforcement officers of ICE who swear an oath to uphold our nation’s immigration laws,” said Todd M. Lyons, Acting Field Office Director, U.S. Immigration and Customs Enforcement (ICE)’s Enforcement and Removal Operations, Boston. “In order for our criminal justice system to work fairly for all people, it must be protected against judicial officials who would seek to replace the implementation of our laws with their own ideological views or politically-driven agenda. I would also like to thank U.S. Attorney Lelling for his local leadership and his continuous and faithful support of the ERO law enforcement mission.”
According to court documents, on March 30, 2018, Newton Police arrested and charged an alien defendant under Massachusetts General Law with being a fugitive from justice and narcotics possession. Further investigation revealed that the defendant had twice been deported from the United States - in 2003 and 2007, and that a federal order had been issued prohibiting the defendant from entering the U.S. until 2027. After learning of the defendant’s arrest, ICE issued a Federal Immigration Detainer and Warrant of Removal, which stated that the defendant was subject to removal from the United States. On April 2, 2018, Newton Police transferred custody of the defendant to Newton District Court (NDC), where Joseph was assigned as the District Court Judge and MacGregor as a Trial Court Officer, and forwarded the Detainer and Warrant.
At 9:30 a.m. on April 2, 2018, a plainclothes ICE officer was dispatched to NDC to execute the Warrant and take custody of the defendant following his release from NDC. The Officer announced his presence to Courthouse personnel, including Joseph, upon arrival. Prior to the afternoon session, the courtroom clerk – at Joseph’s direction – allegedly instructed the ICE Officer to leave the courtroom and wait outside in the lobby, stating that in the event that the defendant was released, it would be through the courtroom and into the lobby.
At 2:48 p.m. the case was called and the proceedings were captured on the courtroom’s audio recorder, as prescribed under the rules for all State District Courts. The audio recording captured Joseph, the defense attorney and the ADA speaking at side bar about the defendant and the ICE detainer. Joseph then allegedly ordered the courtroom clerk to “go off the record for a moment.” For the next 52 seconds, the courtroom audio recorder was turned off, in violation of the District Court rules. At 2:51 p.m., the recorder was turned back on, and Joseph indicated her intent to release the defendant. According to the charging documents, the defense attorney asked to speak with the defendant downstairs and Joseph responded, “That’s fine. Of course.” When reminded by the clerk that an ICE Officer was in the courthouse, Joseph stated, “That’s fine. I’m not gonna allow them to come in here. But he’s been released on this.” Immediately following the proceeding, MacGregor allegedly escorted the defendant, his attorney and an interpreter downstairs to the lockup and used his security access card to open the rear sally-port exit and release the defendant at 3:01 p.m.
MacGregor was also charged with perjury for falsely testifying before a federal grand jury on July 12, 2018, that, prior to releasing the defendant from the sally-port exit, he was unaware that ICE agents were in the Courthouse and that there was a detainer for the defendant.
The charges of conspiracy to obstruct justice and obstruction of a federal proceeding – aiding and abetting provide for sentences of no greater than 20 and five years in prison, respectively; five and three years of supervised release, respectively; and a fine of $250,000. The charge of perjury provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling, HSI SAC Fitzhugh and ERO Acting FOD Lyons made the announcement today. Assistant U.S. Attorneys Dustin Chao and Christine Wichers of Lelling’s Criminal Division are prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Man Sentenced for Yellowstone National Park AssaultRead the Press Release
JACKSON BURLEY COOMBS, 30, was sentenced on April 24, 2019 to seventy-eight months in federal prison for assaulting two tourists in Yellowstone National Park in July of 2018. United States District Court Judge Nancy D. Freudenthal imposed the sentence after Coombs pleaded guilty to one count of aggravated assault with a dangerous weapon and one count of simple assault.
Coombs was arrested by U.S. Park Rangers after a report of an assault in progress at the Xanterra Cabin Community Bathrooms in Yellowstone National Park. Coombs was hiding in a stall in the women’s bathroom and after a woman entered her stall, he banged on her door until it opened after having wrapped his face in toilet paper. He then began to punch the female victim in the face and head, at one point grabbing her by the jaw. She was able to yell for help and her traveling companion entered the bathroom to help her. Upon entering, he was also assaulted by Coombs who used bear spray on both victims. A passerby also entered the bathroom to help subdue the suspect until Park Rangers arrived. The female victim suffered a concussion as well as many bruises and cuts to her face.
After Coombs was sentenced, the United States Attorney for Wyoming, Mark A. Klaassen, stated, “The nature and circumstances of the unprovoked assault in this case are truly appalling. I am sorry for the pain and emotional distress the victim of this senseless attack has had to endure, and thankful for the courage of those who heard the commotion and took action to subdue Coombs before he could inflict any further harm. I also appreciate our law enforcement partners in responding to the scene and assisting my office in bringing this case to justice.”
Upon completion of his prison sentence Coombs will be on supervised release for thirty-six months and was ordered to pay $2,199.00 in restitution and a $125.00 special assessment.
Man Indicted on Child Sexual Exploitation ChargesRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Springfield man with attempted coercion and enticement of a minor, and receipt, distribution, possession, and transportation of child pornography.
According to the indictment, between January and February 2019, Monis Irfan, 21, allegedly attempted to persuade and induce a minor under the age of 13 to engage in illegal sexual activity. At the time, he was an instructional assistant and substitute elementary school teacher for Fairfax County Public Schools. The indictment further alleges that in 2018 and 2019, Irfan traded, transported, and possessed child pornography using a cell phone and personal laptop computer.
If convicted of attempted coercion and enticement of a minor, Irfan faces a mandatory minimum of ten years in prison and a maximum of life. If convicted of receipt, distribution, and transportation of child pornography, Irfan faces a mandatory minimum of five years in prison and a maximum of 20 years on each count. 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.
This matter was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is composed of FBI agents, along with detectives from the Fairfax County Police, Arlington County Police, Prince William County Police, Loudoun County Sheriff’s Office, Leesburg Police, Alexandria City Police, Washington Metropolitan Police, Fauquier County Sheriff’s Office, George Mason University Police, United States Marshal’s Service, and agents of various Office of Inspector Generals. This matter was brought to the task force by the Fairfax County Police Department.
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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement. Assistant U.S. Attorney Maya D. Song and Special Assistant U.S. Attorney William G. Clayman are prosecuting the case.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-120.