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Tuesday 19 March 2019
Financial Broker Pleads Guilty in Manhattan Federal Court to Tax Evasion and Failure to File Tax ReturnsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that RICHARD JOSEPHBERG pled guilty today to one count of tax evasion and three counts of willful failure to file tax returns. In particular, JOSEPHBERG admitted that he deliberately evaded the assessment of hundreds of thousands of dollars in federal income taxes by fraudulently reporting a 2011 commission of approximately $1.5 million as a long-term capital gain, which was taxed at a much lower rate than ordinary income. In addition, he admitted that he willfully failed to timely file any tax returns for the calendar years 2013 through 2015. As part of his plea, JOSEPHBERG agreed to pay at least $1,275,624 in restitution to the IRS and the New York State Department of Taxation and Finance. JOSEPHBERG pled guilty before United States Circuit Judge Richard J. Sullivan.
U.S. Attorney Geoffrey S. Berman said: “As he admitted, Richard Josephberg defrauded the IRS and evaded taxes by disguising more than $1.5 million in income as long-term capital gain. He also admitted he failed to file tax returns for four years. Now Josephberg awaits sentencing for his multifaceted tax dodge.”
According to the Indictment, public filings, and other statements made in open court:
JOSEPHBERG was previously convicted in September 2007, in the U.S. District Court for the Southern District of New York, of 16 counts of tax fraud and one count of health care fraud, which resulted in a sentence of 50 months in prison and three years’ supervised release. While on supervised release for that conviction, he began engaging in the criminal conduct that formed the basis of today’s plea.
Specifically, starting in late 2010, JOSEPHBERG began working for an investor relations firm (“Firm-1”) in Manhattan. Through the individual who operated Firm-1, JOSEPHBERG secured a commission-based arrangement with another investment firm (“Firm-2”), which agreed to pay JOSEPHBERG a commission of approximately 15 percent of any profit generated by Firm-2 on financing deals originated by JOSEPHBERG. For originating one such financing deal, JOSEPHBERG was entitled to commission payments totaling approximately $1.57 million in 2011. After receiving payments totaling approximately $35,725 in his own name, JOSEPHBERG directed Firm-2 to issue the remaining commission payments in the name of a newly formed nominee corporate entity called “Almorli Advisors Inc.” JOSEPHBERG opened a new bank account in the name of Almorli Advisors Inc. (“Almorli Bank Account-1”), and deposited payments totaling approximately $1.53 million into that account.
In March 2012, while preparing to file 2011 federal income tax returns, JOSEPHBERG took steps to evade paying hundreds of thousands of dollars in federal income taxes by disguising and concealing the type of income that JOSEPHBERG had received from Firm-2. On or about March 27, 2012, JOSEPHBERG formed a second entity called “Almorli Advisors NY LLC,” which served as a shell company to insulate JOSEPHBERG from IRS scrutiny. JOSEPHBERG caused his accountant to prepare a false 2011 partnership income tax return, Form 1065, in the name of Almorli Advisors NY LLC (the “2011 Form 1065”), listing JOSEPHBERG as a 99 percent partner and JOSEPHBERG’s son as a one percent partner. To evade a substantial part of the income taxes due and owing for 2011, JOSEPHBERG caused the 2011 Form 1065 falsely to report the commission payments from Firm-2, totaling approximately $1,574,922, as a long-term capital gain, rather than ordinary income. JOSEPHBERG’s purported 99 percent share of this false long-term capital gain flowed through to JOSEPHBERG’s 2011 individual income tax return, Form 1040. JOSEPHBERG’s fraudulent misclassification of this income resulted in a reported tax liability that was hundreds of thousands of dollars lower than the true tax liability because individual long-term capital gains were taxed at a significantly lower rate than ordinary income.
JOSEPHBERG also engaged in a scheme to evade the assessment of federal income taxes for calendar years 2013 through 2016. During those years, JOSEPHBERG received substantial income from performing consulting and other professional services. Despite earning substantial income, JOSEPHBERG failed timely to file any federal income tax returns for the calendar years 2013 through 2016 until after IRS agents informed JOSEPHBERG in May 2017 that he was under investigation. In addition to not timely filing any tax returns, JOSEPHBERG took various affirmative steps to evade the assessment of taxes. Among other things, JOSEPHBERG routed substantial amounts of income through Almorli Bank Account-1 and another bank account in the name of Almorli Advisors Inc., which bank accounts JOSEPHBERG controlled and used to pay for his personal expenses.
JOSEPHBERG’s tax evasion and failure to file tax returns had a dual purpose: by using corporate entities to conceal personal income, JOSEPHBERG was attempting both to evade paying his substantial outstanding tax liabilities from prior years (1997, 1998, and 2005) and to evade assessment of taxes for 2011 and 2013 through 2016, as charged in the Indictment.
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JOSEPHBERG, 72, of Greenwich, Connecticut, pled guilty to one count of tax evasion for the tax year 2011, which carries a maximum sentence of five years in prison, and three counts of willful failure to file tax returns for the tax years 2013 through 2015, each of which carries a maximum sentence of one year in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. As part of his plea, JOSEPHBERG agreed to pay at least $1,275,624 in restitution to the IRS and the New York State Department of Taxation and Finance. JOSEPHBERG is scheduled to be sentenced by Judge Sullivan on July 15, 2019, at 2 p.m.
Mr. Berman praised the outstanding work of the Internal Revenue Service, Criminal Investigation, in this case. Mr. Berman also thanked the New York State Department of Taxation and Finance for its assistance in the prosecution.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Olga I. Zverovich and Andrew D. Beaty are in charge of the prosecution.
Felon in Possession of a Firearm Sentenced to Federal PrisonRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that District Judge John W. deGravelles sentenced TERRION JACKSON, a 24 year-old resident of Baton Rouge, Louisiana, to 87 months in federal prison following his conviction of possessing a firearm by a convicted felon. The Court further sentenced JACKSON to 3 years of supervised release following his term of imprisonment and ordered that the firearm be forfeited.
On February 5, 2018, a Baton Rouge Police Officer stopped JACKSON, who was driving a vehicle with an expired registration tag. The officer smelled marijuana coming from the vehicle and asked JACKSON and his passenger to step out at which time JACKSON told the officer he had a gun under the driver’s seat. The officer returned to the vehicle and recovered a loaded Canik55, 9mm pistol from underneath the driver’s seat, along with marijuana packaged for sale which JACKSON admitted belonged to him.
JACKSON has three prior felony convictions which prohibit him from possessing a firearm. On May 31, 2016, in the Nineteenth Judicial District Court, JACKSON pled guilty to simple robbery, simple burglary of an inhabited dwelling, and aggravated burglary.
U.S. Attorney Fremin stated, “This is yet another step towards our goal of making our communities safer. Keeping guns out of the hands of violent felons is one of my office’s top priorities. We will continue to aggressively pursue those who illegally possess firearms and use them to endanger the lives of other citizens. I appreciate the great work performed in this case by our prosecutors, the ATF, and the Baton Rouge Police Department.”
“ATF New Orleans Field Division works every day with our partners to take the most violent offenders off our streets and put them behind bars where they belong,” said Special Agent in Charge Dana Nichols. “ATF will continue working to keep our communities and our citizens safe from those who commit acts of violence.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Jessica Thornhill.
FBI Arrest Five Greenville Men on Federal Gun ChargesRead the Press Release
JACKSON, MISS. – Five Greenville, Miss. men were taken into custody by law enforcement on Tuesday after being indicted by a federal grand jury on charges of felon in possession of a weapon, and three of the five are additionally charged with drug trafficking and related weapons charges, announced William C. Lamar, United States Attorney for the Northern District of Mississippi and Christopher Freeze, Special Agent in Charge of the FBI in Mississippi.
On Tuesday, March 19, 2019, law enforcement took the following individuals into custody:
- Ted Bell, age 41, of Greenville.
- Henry Brown, age 39, of Greenville.
- Cornelius K. Harris, age 29, of Greenville.
- George Jefferson, age 34, of Greenville.
- Lonnie Nalls, age 35, of Greenville.
Bell is charged in a four count indictment with two counts of felon in possession of a firearm, one count of possession with intent to distribute – marijuana and one count of possession of a firearm in relation to and in furtherance of drug trafficking. If convicted, Bell faces up to 25 years in federal prison and a fine of up to $1 million.
Brown is charged in a three count indictment with one count of felon in possession of a firearm, one count of possession with intent to distribute – cocaine and one count of possession of a firearm in relation to and in furtherance of drug trafficking. If convicted, Brown faces up to 30 years in federal prison and a fine of up to $2.5 million.
Jefferson is charged in a three count indictment with one count of felon in possession of a firearm, one count of possession with intent to distribute – marijuana and one count of possession of a firearm in relation to and in furtherance of drug trafficking. If convicted, Jefferson faces up to 25 years in federal prison and a fine of up to $1 million.
Harris and Nalls are each charged in a one count indictment with being a felon in possession of a firearm. If convicted, Harris and Nalls each face up to 10 years in federal prison and a fine of up to $250,000.
All five individuals made initial appearances before United States Magistrate Judge Jane M. Virden, United States District Court for the Northern District of Mississippi in Greenville on Tuesday. Magistrate Judge Virden ordered that Bell, Harris, Jefferson and Nalls be held pending Detention Hearings set for Thursday, March 21, 2019.
Agencies assisting with the investigation and arrests were the Greenville Police Department, the District Attorney’s Office for the Fourth Circuit Court and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorney Robert Mims. -
These charges are merely an accusation, and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Dominican Republic Man Sentenced to over Six Years’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 14, 2019, United States District Court Judge James M. Munley sentenced Willis DeLaRosa-Baez, age 34, to 80 months’ imprisonment and a four-year term of supervised release, for conspiring to distribute heroin and crystal methamphetamine.
According to United States Attorney David J. Freed, DeLaRosa-Baez, his co-defendant, Daniel Silvestre-Ubri, and other individuals conspired to distribute heroin and crystal methamphetamine in Pennsylvania between February 4, 2016 and April 6, 2016. DeLaRosa-Baez admitted to supplying other drug dealers with narcotics, and to trafficking in excess of 2.6 kilograms of crystal methamphetamine and 3 kilograms of heroin, the latter of which is the equivalent of 120,000 potentially fatal doses of heroin.
DeLaRosa-Baez, a citizen of the Dominican Republic, entered the United States illegally and will be deported upon the conclusion of his sentence. He was indicted on May 17, 2016, and has remained in custody since his arrest on June 22, 2016. His co-defendant, Silvestre-Ubri, also has remained in custody since his arrest on March 22, 2018, pleaded guilty, and is awaiting sentencing.
The investigation was conducted by Homeland Security Investigations, the Pennsylvania Office of the Attorney General and the Pennsylvania State Police. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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District Man Sentenced to 47 Months in Prison on Federal Firearms and Narcotics ChargesRead the Press Release
WASHINGTON – Deangelo Jenkins, 33, of Washington, D.C., was sentenced today to 47 months in prison on firearms and narcotics offenses stemming from an investigation in which law enforcement recovered two loaded handguns and cocaine base, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Jenkins pled guilty on Dec. 4, 2018, in the U.S. District Court for the District of Columbia, to two counts of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year and one count of possession of cocaine basis. He was sentenced by the Honorable Timothy J. Kelly. Following his prison term, he will be placed on three years of supervised release.
According to the government's evidence, on Oct. 24, 2017, MPD officers observed Jenkins driving a white Infiniti that had been identified in connection with a homicide investigation. Officers made contact with Jenkins and advised him that the vehicle was being seized in reference to the pending homicide investigation. Jenkins was then asked to exit the vehicle. Jenkins, who was talking on a cellular phone at the time, did not comply. He acted nervous and failed to exit the vehicle despite being ordered to do so by officers on several occasions. An officer then reached through the driver’s side window and attempted to unlock the driver’s side door, but Jenkins re-locked the door before the officer could open it. This happened a number of times before officers could successfully get Jenkins out of the vehicle. Once he was out of the vehicle, MPD officers were able to impound it for investigative purposes.
Jenkins was not arrested at that time. The following day on Oct. 25, 2017, pursuant to a search warrant, MPD officers searched the vehicle. During the search, officers recovered a .45-caliber handgun from the center console of the vehicle. The firearm had one round of ammunition in the chamber and 10 rounds in the magazine.
Following the discovery of the gun and ammunition, an arrest warrant was issued. On Nov. 9, 2017, members of the U.S. Marshals Service observed Jenkins entering an apartment building in the 2900 block of 14th Street NW. Jenkins was arrested inside an apartment. During a search of Jenkins, officers recovered a .357-caliber revolver from his waistband area. The firearm was loaded with six rounds of ammunition in the chamber.
Jenkins was arrested and transported to a hospital after complaints of feeling ill. While at the hospital, an additional search of the defendant was conducted, and officers found a large white rock-like substance located in the right front change pocket of the defendant’s pants. The white substance was tested and determined to be cocaine base.
At the time of his arrest in this case, Jenkins was barred from possessing a firearm due to previous convictions in the District of Columbia and Prince George’s County, Md. for armed robbery, firearms and other offenses.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They expressed appreciation for the assistance provided by the U.S. Marshals Service. They also commended the efforts of those who worked in the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialist Teesha Tobias and former Paralegal Specialist Jeannette Litz.
Finally, they expressed appreciation for the work of Assistant U.S. Attorney Emory V. Cole, who prosecuted the case.
Detroit Man Sentenced to 6 Months in Prison for Stealing More than $280,000 in Government BenefitsRead the Press Release
A Detroit man was sentenced yesterday to six months in prison for stealing more than two-hundred and eighty thousand dollars from the Social Security Administration and the Department of Veteran’s Affairs, U.S. Attorney Matthew Schneider announced.
Schneider was joined in the announcement by Resident Agent in Charge Adam Lowder, Social Security Administration Office of the Inspector General, Office of Investigations, Detroit Office; and Special Agent in Charge Gregg Hirstein, Department Veterans Affairs Office of the Inspector General.
Walter Terrell Sr., 76, was sentenced by U.S. District Judge George Caram Steeh, III in Detroit, Michigan. After the conclusion of his prison term, Terrell must also spend three years on supervised release. The Court further ordered Terrell to pay full restitution to the government.
According to court records, Terrell’s mother passed away in the fall of 1981. She was receiving Social Security retirement insurance benefits at the time and because SSA was unaware of her death, SSA continued to issue monthly Treasury checks in her name. The erroneous payments continued for approximately 37 years—$253,327.00 in total. Terrell then unlawfully converted those benefits by forging his late mother’s name and cashing hundreds of checks. During the same period, Terrell also unlawfully retained $35,649.00 in payments made to his mother by the Department of Veterans Affairs.
In 2014, as part of the Medicare Non-Utilization Project, an SSA initiative designed to fight fraud by contacting elderly beneficiaries who have not used their Medicare in three or more years, SSA made contact with Mr. Terrell, who reported that his mother was “on vacation.” Terrell then arranged for someone to impersonate his mother during a subsequent phone call with the agency, allowing his scheme to continue for another three and a half years. The fraud was finally exposed after a 2018 SSA-OIG audit identified a death certificate for a woman who was ultimately confirmed to be Terrell’s mother.
This case was investigated by special agents from both SSA-OIG and VA-OIG and was prosecuted by Special Assistant U.S. Attorney Ryan A. Particka.
Des Moines Man Sentenced to 120 Months in Prison for Felon in Possession of a FirearmRead the Press Release
Des Moines, Iowa – On March 13, 2019, Ryan Nicholas Haynes, age 28, was sentenced by United States District Court Judge Stephanie M. Rose for Felon in Possession of a Firearm. Haynes was sentenced to 120 months’ imprisonment, to be followed by a three-year term of supervised release.
On November 6, 2018, following a two-day trial, a jury found Ryan Nicholas Haynes, 28, guilty of one count of Felon in Possession of a Firearm.
On July 29, 2017, Haynes was present on a party bus that was stopped for a traffic violation in downtown Des Moines, Iowa. Officers smelled marijuana coming from the bus, so they removed the passengers to investigate further. When Haynes was stepping off the bus, he removed marijuana from his pocket and handed it to one of the officers. A pat-down search of Haynes revealed a firearm in his pants. Before officers could recover the firearm, Haynes ran from them. After a short foot chase, officers apprehended Haynes near 16th Street and Grand Avenue. The firearm was recovered in a flowerbed outside a townhome in the 1600 block of Grand Avenue. This was right next to where Haynes had jumped a fence while running from officers. The firearm was loaded with 14 live rounds of ammunition. It was identified as a Glock, Model 22, .40 caliber handgun.
The case was investigated by the Des Moines Police Department’s Summer Enforcement Team and the Federal Bureau of Investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Daisy Man Pleads Guilty to Ammunition PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that John Douglas Walker III., age 39, of Daisy, Oklahoma, entered a guilty plea to Felon in Possession of Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that on or about February 5, 2019, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, ammunition which had been shipped and transported in interstate and foreign commerce.
The charges arose from an investigation by the United States Marshals Service and the Bureau of Indian Affairs.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Convicted Felon Sent to Prison for Possessing FirearmRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to nearly four years in prison for being a felon in possession of a firearm.
“A convicted felon in possession of a firearm poses a serious risk to the safety of our community,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Slaughter has an extensive criminal record that includes assault and battery on a family member and assault on a law enforcement officer. In this case, he attempted to evade police and possessed a loaded handgun that he threw into a public parking lot. We will continue to prosecute these cases at every opportunity and remove violent felons like Slaughter from our communities.”
According to court documents, on March 16, 2018, Newport News Police Department responded to the Happy Shopper store on Marshall Avenue in reference to two males in possession of firearms. Officers made contact with the two suspects, Carl A. Slaughter, 24, and another male. One officer observed a firearm magazine sticking out of Slaughter’s waistband and asked if Slaughter had a concealed carry permit. Slaughter immediately ran from the store through a parking lot, and officers pursued Slaughter on foot. Officers observed Slaughter throw a firearm during the chase. Slaughter was apprehended and the firearm, a Taurus 9 mm with an extended capacity magazine containing 28 rounds with one round chambered, was recovered.
Slaughter had previously been convicted of assault and battery on a law enforcement officer and was on supervised probation at the time of this offense. His assault and battery on a law enforcement officer conviction resulted from a March 6, 2017 traffic stop in Newport News. Slaughter resisted law enforcement during the interaction, and one officer was hospitalized with a major knee injury and another officer sustained knee and elbow abrasions. Slaughter has also previously been convicted of assault and battery on a family member, violation of a protective order, contributing to the delinquency of a minor, violation of probation, receiving stolen goods, and failure to appear.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Megan M. Cowles 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 is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-84.
Chuck Person, Former Division I Men’s Basketball Coach, Pleads Guilty to Bribery in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that CHUCK CONNORS PERSON, a former men’s basketball coach at Auburn University (“Auburn”), pled guilty in Manhattan federal court today to receiving approximately $91,500 in cash bribes from athlete advisers in exchange for using his influence over Auburn basketball players to retain the services of the advisers paying the bribes. PERSON pled guilty before U.S. District Judge Loretta A. Preska.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he has now admitted, Chuck Person abused his position as a coach and mentor to student-athletes in exchange for personal gain. In taking tens of thousands of dollars in cash bribes, Person not only placed personal financial gain above his obligations to his employer and the student-athletes he coached, but he broke the law.”
According to the Complaint, the Indictment, statements made in court and publicly available documents:
Over the course of a year, PERSON, a former men’s basketball coach at Auburn University until shortly after his arrest, agreed to accept cash bribes in return for agreeing to exert his influence over student-athletes on the Division I men’s basketball team he coached to retain the services of the bribe-payers, including once the student-athletes entered the National Basketball Association (“NBA”).
Beginning in 2016, and continuing into September 2017, when PERSON was arrested, PERSON received approximately $91,500 in cash bribes from a financial adviser and business manager, who, unbeknownst to PERSON, was providing information to law enforcement (“CW-1”). In exchange for the cash bribes, PERSON agreed to exert his influence over certain student-athletes PERSON coached at Auburn University to retain the services of CW-1 once those players entered the NBA. The bribe payments are alleged to have been initially arranged by a co-conspirator who had a preexisting relationship with PERSON and operated a clothing store that specialized in making bespoke suits for professional athletes.
Over the course of the scheme, and in exchange for the cash bribes described above, PERSON did, in fact, arrange multiple meetings between CW-1 and Auburn players and/or their family members. In those meetings, PERSON falsely touted CW-1’s qualifications as a financial adviser and business manager without disclosing that PERSON was, in fact, being bribed to recommend CW-1. In one recorded meeting, PERSON stressed to an Auburn University player the importance of keeping their relationship with CW-1 a secret. Person stated, “most important part is that you . . . don’t say nothing to anybody . . . don’t share with your sisters, don’t share with any of the teammates, that’s very important cause this is a violation . . . of rules, but this is how the NBA players get it done, they get early relationships, and they form partnerships.” PERSON later told that player that CW-1 would purchase him a separate cell phone over which they could communicate so as to conceal the nature of the scheme.
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PERSON, 54, of Auburn, Alabama, pled guilty to one count of conspiracy to commit bribery. As a condition of his plea, PERSON agreed to forfeit $91,500. The charge carries a maximum term of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing is scheduled for July 9th, 2019, before Judge Preska.
Mr. Berman praised the work of the FBI and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Robert L. Boone, Aline R. Flodr, Noah Solowiejczyk, and Eli J. Mark are in charge of the prosecution.
Chinese Citizen Sentenced in Scheme to Sell Mislabeled Dietary SupplementsRead the Press Release
Xu Jia Bao (aka Fred Xu), of Shanghai, China, was sentenced in Dallas yesterday to 18 months’ imprisonment and one year of supervised release in connection with a scheme to sell mislabeled dietary supplements, the Department of Justice announced today.
Xu, 48, is the principal of Shanghai Waseta International Trade Co. Ltd., a Chinese firm that sells raw ingredients for use in dietary supplements. Xu pleaded guilty in August 2018 in the Northern District of Texas to one count of wire fraud. Waseta, the company, also pleaded guilty to wire fraud in September 2018. The company was sentenced in February 2019 to one year of probation and ordered to pay a $500,000 fine.
In pleading guilty, Xu admitted that he agreed with others working at Waseta to sell synthetic stimulant ingredients, including the substance known as DMHA, to a purported dietary supplement manufacturer in the United States. Xu admitted that the purported dietary supplement manufacturer, actually a confidential government informant, told him that Waseta ingredients would not be accurately listed on the labels of the finished dietary supplement. Xu admitted that he knew major American retailers would refuse to carry supplements known to contain certain stimulants, such as DMHA. Xu also admitted that he and Waseta caused a falsely labeled shipment of DMHA to be sent to Texas.
“Consumers are entitled to trust that dietary supplements products accurately identify their ingredients,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will vigorously pursue and prosecute those who attempt to circumvent the law by falsely identifying the substances they import into the United States.”
Xu and Waseta both were sentenced by U.S. District Court Judge Sam A. Lindsay of the Northern District of Texas. Xu was arrested in September 2017 while attending a dietary supplement trade show in Las Vegas. Another defendant named in the case, Li Ting Ting (a.k.a. Sunny Lee), the overseas sales manager for Shanghai Waseta, is not believed to be in the United States.
“Consumers deserve to know what’s in the supplements they ingest,” said U.S. Attorney Erin Nealy Cox. “The Northern District of Texas will not stand by as companies mislead consumers.”
“Dietary supplements that contain undeclared synthetic stimulant ingredients pose a risk to the health of U.S. consumers,” said Charles L. Grinstead, Special Agent in Charge, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to investigate and bring to justice those who jeopardize the public health by importing and selling misbranded supplements.”
The case was investigated by FDA’s Office of Criminal Investigations. The case was prosecuted by David Sullivan and Patrick R. Runkle, Trial Attorneys in the Department of Justice’s Consumer Protection Branch, and Kate Rumsey and Douglas Brasher, Assistant United States Attorneys for the Northern District of Texas.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
Chenango County Man Pleads Guilty to Trying to Have Sex with A 13 Year Old GirlRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jeremy Custer, 36, of Norwich, NY, pleaded guilty to attempted coercion and enticement of a minor before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a mandatory minimum penalty of 1) years in prison and a maximum of life.
Assistant U.S. Attorney Richard A. Resnick, who is handling the prosecution, stated that on September 14, 2018, an undercover New York State Police Investigator (UC) received a private message from “Fastmeet” user “Jeremy” on the UC’s Fastmeet undercover profile. Fastmeet is an application that can be downloaded on to a cellular telephone. The application allows users to communicate with other users and see their GPS location.
The UC’s undercover Fastmeet profile included a profile picture of a female child and listed her name as Jenny, her age as 13-years-old, and her GPS location as Henrietta, NY. The defendant’s profile listed him as 36-years-old and contained multiple pictures of a white male who appeared to be in his 30’s. The male pictured in the profile was later identified as Custer.
Between September 17, 2018, and September 22, 2018, the defendant and the UC exchanged text messages in which Custer attempted to coerce and entice the UC, who he believed was a 13-year-female, to engage in sexual activity. Some of the messages included:
• “What have you done with other guys? I’ve obviously been all the way and am not in any way expecting or wanting you to unless you feel you’re ready for it. There are a lot of other things we can do besides that or leading up to it.”
• “I like to get pictures and maybe videos, but again only if you’re comfortable sending them to me. I will promise I won’t show them to anyone else. Anything you want to send. They can be naked or dressed.”
• “Do you want me to spank and punish you or would you rather have me hug, kiss and admire your beauty?”
• “I would obviously love to be your first, but it certainly doesn't have to be tonight unless you're sure you want to.”
• “I’m getting lube and a couple different forms of contraceptives to minimize the risk of pregs.”On September 22, 2018, the defendant made plans to go to the 13-year-old female child’s residence in Henrietta and pick her up. Custer advised he was on his way and that he had booked a hotel room for them. When the defendant arrived at the UC’s purported residence, he was arrested. In his vehicle, the defendant had contraceptive lubricants, lotions, and a “Plan B” oral contraceptive.
The plea is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for June 24, 2019, at 3:00 p.m. before Judge Geraci.
# # # #California Man Pleads Guilty to Sex Trafficking of Six VictimsRead the Press Release
KANSAS CITY, Mo. – A Sacramento, Calif., man pleaded guilty in federal court today to the sex trafficking of six victims.
Ronald Ean Taylor, 45, pleaded guilty before U.S. District Judge Gary A. Fenner to six counts of the sex trafficking of an adult.
By pleading guilty today, Taylor admitted that he used force, fraud or coercion to cause six victims to engage in prostitution, from which he benefitted financially. Taylor trafficked six separate victims at various times between Nov. 1, 2014, and May 31, 2017.
The investigation began in June 2016, when one of Taylor’s victims was contacted by Kansas City, Mo., police officers. She told officers that Taylor was a pimp who lived in California and sold drugs and prostitutes in the Kansas City area. She said Taylor verbally threatened to harm her, was mean, had anger issues, and was manipulative. He provided her with drugs and used her to meet other women with drug addictions. She told officers that one of Taylor’s victims, identified in court documents as “Victim 6,” used to “work” for Taylor and died in California from a drug overdose while she was with him.
The women had ads posted on Backpage and Taylor used hotels near Blue Ridge Cutoff near the sports stadiums to conduct his business. He would get the women to go to California and show them an extravagant lifestyle. He started them off dancing in strip clubs, then suggested they work as prostitutes. When the women agreed to prostitute, Taylor would fly them back to Kansas City to work. Taylor kept the money earned by the women from prostitution.
A second victim told investigators that Taylor was violent and on one occasion hit her over the head with liquor bottle. The second victim stated she felt like she would be hurt if she did not have sex with him. She said Taylor carried a firearm.
A third victim told federal agents that Taylor was physically violent towards her and would take all of the proceeds from the acts of prostitution. She said Taylor choked her to unconsciousness and forcibly raped her.
A fourth victim’s mother contacted law enforcement to report that her daughter was in Hollywood, Calif., with Taylor and was being held against her will. Taylor had brought the fourth victim to California on two occasions so that she could purportedly model. He provided her with illegal narcotics and kept her in a constant state of intoxication to a point where she became dependent. She told investigators that Taylor kept her from contacting her mother and became hostile; he used her drug dependency to motivate her to do things she would not normally do.
A fifth victim told investigators that she and a sixth victim (now deceased due to a drug overdose) were addicted to heroin. Taylor used heroin and a trip to California to entice them to work as prostitutes. He paid for both of their airfares to California and put them up in a motel somewhere in Los Angeles. Taylor continued to supply them with drugs and then flew them both back to Kansas City to work as prostitutes. On one occasion, she said, Taylor slapped her in the face and forcibly raped her. She and another victim told investigators that Taylor also was physically abusive to the sixth victim. A witness stated she saw Taylor throw her against the wall and choke her.
Under the terms of today’s plea agreement, Taylor will be sentenced to 18 years in federal prison without parole and must pay restitution to his victims. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Los Angeles, Calif., Police Department and the Sacramento, Calif., Police Department in conjunction with the Human Trafficking Rescue Project.
California Man Charged in Manhattan Federal Court with Defrauding Thousands of Donors to Scam Political Action CommitteesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JOHN PIERRE DUPONT, a/k/a “John Gary Rinaldo,” was arrested this morning and charged with wire fraud and aggravated identity theft for his role in a years-long, nationwide scheme to defraud thousands of donors who believed they were donating to political action committees and political campaigns. The defendant is expected to be presented this afternoon in the District Court of Arizona.
U.S. Attorney Geoffrey S. Berman said: “As alleged, John Pierre Dupont operated multiple fake political action committees and falsely claimed to be raising money to support more than a dozen campaigns. Thousands of donors believed their hard-earned money was being used to support the causes described in solicitations, but in reality, the scam PACs had no operations beyond the fundraising itself, and no funds were used to support candidates. My Office will continue to ensure that fraudulent fundraising does not pay – indeed, will result in criminal prosecution – by rooting out scam PACs wherever we find them.”
According to the Complaint[1] unsealed today in Manhattan federal court:
From at least in or about 2015 up to and including the present, JOHN PIERRE DUPONT defrauded thousands of donors who believed they were donating to three political action committees established by DUPONT (the “Scam PACs”),[2] or to campaigns the Scam PACs falsely claimed to support. DUPONT’s scheme resulted in more than $250,000 being donated through websites he controlled and operated, all of which was retained by DUPONT, both to enrich himself personally and to perpetuate the alleged crime.
The websites purported to be raising money in support of Democratic congressional and senate campaigns generally, as well as approximately 10 particular Senate candidates, a candidate for governor, and a candidate for president. None of the money raised went either to those campaigns or to support those candidates whatsoever. Another website operated by DUPONT purported to be raising money “to unite immigrant families” and provide services in connection with certain immigration policies. In particular, the Foundation for Sanity in Politics PAC website claimed that donations would “go to help pay our volunteer attorneys’, doctors’, nurses’ and social workers’ costs and pay for transportation to unite immigrant families.” In fact, that PAC had no volunteers, and dedicated no funds to paying for doctors, social workers, or any other professionals, advocacy, or political operations.
The scheme targeted victims across the country, raising funds on the basis of fraudulent representations that the donations would support the relevant causes, candidates, and campaigns. Instead, virtually all of the money raised was paid to DUPONT or used to perpetuate the fraud through additional fundraising and overhead expenditures. None of the money donated to the Scam PACs was spent on political contributions during the relevant time period, and DUPONT failed to report the donations, as required, in filings with the Federal Election Commission.
Donations collected by DUPONT during the relevant period totaled more than $250,000, none of which went to campaigns or support for any candidate or cause.
* * *
JOHN PIERRE DUPONT, 80, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and aggravated identity theft, which carries a mandatory two years in prison consecutive to any other sentence imposed.
The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York.
If you think you are a victim of the scheme alleged in this press release, please contact Wendy Olsen, Victim & Witness Services for the U.S. Attorney’s Office for the Southern District of New York, at 866-874-8900.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Alex Rossmiller and Ryan Finkel are in charge of the prosecution.
The charges contained in the Complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint constitutes only allegations, and every fact described herein should be treated as an allegation.
[2] Businessmen for a Businessman President PAC, Foundation for Sanity in Politics PAC, and Democrats for Congress PAC.
Burlington Man Sentenced for Ammunition ChargeRead the Press Release
BOSTON - A Burlington man was sentenced yesterday in federal court in Boston for illegally possessing 30 pieces of ammunition.
Brendan Sheils, 32, was sentenced by Judge Leo T. Sorokin to 46 months in prison and three years of supervised release. In December 2018, Sheils pleaded guilty to one-count of being a felon in possession of ammunition.
On Feb. 22, 2018, police received information that Sheils was in possession of an Uzi bump stock weapon and desired to attack the Burlington Police Department. The following day, police executed a search warrant at Sheils’ residence, where they recovered 30 pieces of ammunition, as well as an AR-15 type rifle, which was determined to be a “ghost gun” – a gun that is made by purchasing component parts and then assembling the pieces together. The rifle was loaded with 28 of the pieces of the seized ammunition.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Woburn Police Chief Robert J. Ferullo Jr.; and Burlington Police Chief Michael Kent made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Browning man pleads guilty to strangulationRead the Press Release
GREAT FALLS – A Browning man on Monday admitted to strangling a woman during an argument in a vehicle on the Blackfeet Indian Reservation in September 2018, U.S. Attorney Kurt Alme said.
Elijah Blaine Eagleman, 24, pleaded guilty to strangulation during a hearing before U.S. District Judge Brian M. Morris.
Eagleman faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. He is detained.
Prosecutors said evidence would show that on Sept. 8, 2018, Eagleman hit and strangled the victim near Browning, on the Blackfeet Reservation. The victim lost consciousness after Eagleman choked her with his left forearm and does not recall being hit in the face by Eagleman. The victim said in a statement that the two of them had been arguing.
A law enforcement officer responded after a woman reported to law enforcement that she had stopped at a domestic assault at the intersection of U.S. Highways 2 and 89, at the Y, near Browning. She said a man was on top of a female, who appeared to be trying to wave her down. The officer approached the vehicle and saw that the victim, who was the driver, had fresh bruises on her face and was crying. The officer had the victim get out and walk to the back of the vehicle, where she said Eagleman had hit her but that she was “okay now.” The victim was treated at the Indian Health Service and released the next morning.
In an interview with the case agent, the victim said Eagleman had wrapped his forearm around her neck and pulled her backward into his seat, choking her. The agent observed injuries to the victim’s face and neck as being consistent with a strangulation assault.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Bureau of Indian Affairs and Blackfeet Tribal Police.
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Bank Analyst Stole Account Holder Info then Used it in Counterfeit Check Fraud SchemeRead the Press Release
PITTSBURGH, PA – A resident of Columbus, Ohio pleaded guilty in federal court to charges of conspiracy and aggravated identity theft, United States Attorney Scott W. Brady announced today.
Sarah M. Wiley, 35, pleaded guilty to two counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, beginning in and around September, 2014, and continuing until in and around October, 2017, Sarah M. Wiley, as an analyst for JPMorgan Chase Bank, accessed without authorization personal identifiers, including names and Social Security numbers of JPMorgan Chase account holders. She then shared the information with her father, Karl Edward Wiley, who was indicted earlier in 2018 on charges of conspiracy to produce counterfeit identification documents and checks. Some of the counterfeit checks were negotiated at the Rivers Casino in Pittsburgh. Karl Wiley is pending trial.
Judge Fischer scheduled the sentencing for July 25, 2019 at 9:30 a.m. The law provides for a total sentence of seven years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
Homeland Security Investigations (HSI) Harrisburg and the Pennsylvania State Police conducted the investigation that led to the prosecution of Sarah M. Wiley.
Australian Woman Convicted at Trial of Assault and Interference with Crew on Flight That Landed at Los Angeles International AirportRead the Press Release
LOS ANGELES – An Australian woman who assaulted a flight attendant during a United Airlines flight from Melbourne to Los Angeles International Airport earlier this year has been found guilty of federal charges.
Adau Akui Atem Mornyang, 24, of Victoria, Australia, was convicted on Thursday in relation to a January 21 incident in which she appeared to be intoxicated and was verbally and physically abusive to personnel and other passengers during the flight. The jury found Mornyang guilty of a felony charge of interference with a flight crew and a misdemeanor assault count.
According to the evidence presented at trial, several hours into the flight, passengers approached a flight attendant to complain about Mornyang’s disruptive behavior, which included flailing her arms and yelling obscenities and racial slurs. When the flight attendant approached to assess the situation, Mornyang began to shout at the flight attendant and then slapped him across his face. The flight attendant attempted to restrain Mornyang until federal air marshals could assist. The federal air marshals were forced to stay with Mornyang in the rear galley of the plane for the remainder of the flight.
Mornyang is scheduled to be sentenced on June 24 by United States District Judge Cormac J. Carney. As a result of the guilty verdicts returned on March 14, Mornyang faces a statutory maximum sentence of 21 years in federal prison.
This case was investigated by the FBI, which received assistance from the Federal Air Marshals and the Los Angeles Airport Police Department.
The case against Mornyang is being prosecuted Assistant United States Attorneys MiRi Song and Kevin Reidy of the General Crimes Section.
Alma, Arkansas Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Darrell Dewayne Roberts Jr., age 31, of Alma, Arkansas, entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The Superseding Indictment alleges that on or about December 31, 2018, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 50 grams of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Roland Police Department and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Edward Snow represented the United States.
Monday 18 March 2019
Williamson County Woman Charged with Drug OffenseRead the Press Release
Cari L. Madson of Johnston City, Illinois, has been charged in a one-count indictment with conspiracy to distribute 50 grams or more of methamphetamine, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. The federal indictment alleges that the offense occurred between February 2018 and January 2019, in Williamson and Jefferson Counties.
Madson, 37, made her initial appearance in federal court on March 11 and pleaded not guilty to the charges. She was ordered held without bond pending trial, which is currently scheduled for May 13, 2019.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The drug offenses carry a maximum penalty of 5 to 40 years imprisonment, four years of supervised release, and a fine of $5 million.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group. The Herrin Police Department, Marion Police Department, and Johnston City Police Department also assisted in the investigation.
Williamson County Man Charged with Drug OffensesRead the Press Release
Jacob R. Diefenbach of Marion has been charged by indictment with two counts of unlawful delivery of methamphetamine, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. The federal indictment alleges that the offenses occurred on December 12, 2018, and February 4, 2019, in Williamson County.
Earlier this month, Diefenbach, 30, made his initial appearance in federal court and pleaded not guilty to the charges. He is being held without bond pending a May 13, 2019, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The drug offenses carry a maximum penalty of 20 years imprisonment, three years of supervised release, and a fine of $1 million.
The ongoing investigation is being conducted by the Marion Police Department. The Williamson County State’s Attorney’s Office assisted in the investigation.
Will County Man Sentenced to More Than 4 Years in Federal Prison for Defrauding His Elderly Mother-In-Law out of More Than $175,000Read the Press Release
CHICAGO — A federal judge has sentenced a Will County man to more than four years in prison for stealing his elderly mother-in-law’s identity to misappropriate more than $175,000 from her.
JOHN V. KNAPP, 66, of Romeoville, pleaded guilty last year to one count of wire fraud and one count of aggravated identity theft. U.S. District Judge Sharon Johnson Coleman on Friday sentenced Knapp to four and a half years in prison and ordered him to pay restitution of $177,538.38.
Knapp admitted in a plea agreement that he misappropriated funds from his mother-in-law in 2014 and 2015. At the time, his mother-in-law was in her mid-90s. At sentencing, the mother-in-law submitted a statement to the Court detailing the impact of Knapp’s conduct, which included stealing money that the mother-in-law’s late husband had earned to take care of her.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The government was represented by Assistant U.S. Attorneys Edward G. Kohler and Rebekah Holman.
Evidence in the case revealed that Knapp on approximately 100 occasions misappropriated funds from his mother-in-law’s investment and bank accounts. Knapp assumed her identity during four phone calls to her investment company to fraudulently authorize $129,500 in withdrawals from her investments. During the calls, Knapp fraudulently provided his mother-in-law’s personal identifying information, which at times included her address, date of birth, telephone number, investment account number, and last four digits of her Social Security number. As soon as the funds were deposited in his mother-in-law’s bank account, Knapp fraudulently caused checks to be made payable to him out of the account.
During one of the fraudulent phone calls, Knapp’s mother-in-law was residing in a hospital. At the time of two other calls, she was residing at a rehabilitation center.
Webster City Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty March 18, 2019, in federal court in Sioux City.
Jeremy Alan Frye, 35, from Webster City, Iowa, was convicted of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
At the plea hearing, Frye admitted his involvement in a conspiracy that distributed methamphetamine from July 2017 through August 2018 in Webster City, Iowa. Frye also admitted that on four occasions in 2018 he distributed more than 53 grams of pure meth to law enforcement within a public park zone in undercover drug operations. During a search warrant at Frye’s residence (located within 1000 feet of a protected location, namely Nokomis Park and East Twin Park), law enforcement seized over 37 grams of pure meth. Frye further admitted that he intended to distribute this methamphetamine.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Frye remains in custody of the United States Marshal and will remain in custody pending sentencing. On the conspiracy conviction, Frye faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least ten years of supervised release following any imprisonment. On the possession conviction, Frye faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least eight years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Webster City Police Department, and the Iowa Division of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3035.
Follow us on Twitter @USAO_NDIA.
Virginia man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Chance Allen Good, of Stanley, Virginia, was sentenced today to 37 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Good, age 26, pled guilty to one count of “Possession of a Stolen Firearm” in December 2018. Good admitted to having a stolen .22 caliber rifle in Mineral County in March 2018.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chief U.S. District Judge Gina M. Groh presided.
United States Attorney Minkler celebrates International Women’s MonthRead the Press Release
Indianapolis-In honor of #WomensHistoryMonth, United States Attorney Josh J. Minkler honors the district’s first female AUSA: Sarah Evans Barker, Senior Judge, SDIN, who served the district as an AUSA from 1972-1976, as First Assistant U.S. Attorney from 1976-1977, and as United States Attorney from 1981-1984 before being nominated to the vacant seat on the U.S. District Court, SDIN. Judge Barker is a trailblazer extraordinaire and the ripples of her DOJ legacy and presence positively affect the daily work the office engages in even today. USA Minkler would also like to recognize the district’s most recently hired female AUSA, Amanda Kester, who is currently assigned to the district’s Drug and Violent Crime Unit. AUSA Kester began her tenure with DOJ on 10/15/18. Prior to, she served as a Morgan County Deputy Prosecutor where she specialized in technology prosecutions including crimes against children. USA Minkler is exceptionally proud of the district’s 17 female AUSAs, devoted support staff including female leadership, and two supervisory attorneys, Cynthia Ridgeway, the First Assistant U.S. Attorney, and Shelese Woods, Civil Chief.
The United States Attorney also proudly recognizes the district’s Women’s Leadership Initiative (WLI) Steering Committee: AUSAs Cindy Cho, Kelly Rota, Kate Olivier, Gina Shields, FBI Special Agent Victoria Madtson, and Sarah Dame, Clerk for U.S. District Court Judge Sarah Evans Barker. The WLI meets quarterly at the USAO to discuss issues central to professional development and civic responsibility.
Sarah Evans Barker
Amanda Kester
United States Attorney Mike Stuart Announces Launch of U.S. Attorney's Heroin(e) Education Action Team (HEAT)Read the Press Release
CHARLESTON, W.Va. – In partnership with families who have lost loved ones to drug overdose, United States Attorney Mike Stuart is launching a new program called United States Attorney’s Heroin(e) Education Action Team or USA HEAT. More information about USA HEAT can be found in the attached brochure.
Who: United States Attorney Mike Stuart
Stacie Archer, USA HEAT Team Member
Principal Melissa Lovejoy, Elkview Middle School
Kanawha County Schools Representatives
Kanawha County Sheriff’s Department
What: HEAT Presentation
Where: Elkview Middle School
5090 Elk River Road
Elkview, WV 25071
When: Tuesday, March 19 @ 9:30am for press conference; presentation @ 10:00am
Follow us on Twitter: SDWVNews
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Union County Man Charged with Drug OffensesRead the Press Release
Carl A. Stadelbacher of Cobden, Illinois, has been charged by indictment with one count of conspiracy to manufacture methamphetamine and one count of unlawful possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. The federal indictment alleges that the offenses occurred between 2016 and February 2019, in Union and Jackson Counties.
Stadelbacher, 52, made his initial appearance in federal court on March 13 and pleaded not guilty to the charges. He was ordered held without bond pending a May 20, 2019 jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The drug offenses carry a maximum penalty of 20 years imprisonment, three years of supervised release, and a fine of $1 million.
The ongoing investigation is being conducted by the Union County Sheriff’s Office. The Jackson County Sheriff’s Office and Union County State’s Attorney’s Office assisted in the investigation.
U.S. Attorney’s Office Continues to Recoup Costs Incurred from Illegal KickbacksRead the Press Release
Two more doctors in northeastern Oklahoma have entered into settlement agreements with the U.S. Attorney’s Office for allegedly accepting illegal kickback payments from OK Compounding, LLC, announced U.S. Attorney Trent Shores. These civil settlements resulted from an investigation into numerous health care providers writing prescriptions for pain creams compounded and sold by OK Compounding in return for payments.
“These greedy medical professionals are a major disappointment. Patients expect doctors to uphold strict ethical standards and place patient care above their own financial motives,” said U.S. Attorney Shores. “My office will use every tool at our disposal to remind corrupt physicians that the health of their patients is not for sale and that government health care programs are not free to plunder.”
In one recent settlement, Dr. Mary Johnson, 44, a podiatrist practicing in Claremore, agreed to pay the government more than $76,000 for allegedly accepting illegal kickback payments from OK Compounding in 2013.
In a separate settlement, Dr. Jeff Halsell, 50, a doctor of osteopathic medicine practicing in Tulsa, agreed to pay the government more than $52,000 for allegedly accepting illegal kickback payments from the pharmacy from January to July of 2013.
The settlement agreements resolve allegations that Johnson and Halsell had illegal financial relationships with OK Compounding, concerning pain creams.
Compounding prescriptions is a practice in which a pharmacist or physician combines, mixes or alters ingredients of a drug or multiple drugs to create a medication that is tailored to the specific needs of a patient. These medications are prescribed when standard Food and Drug Administration (FDA) approved drugs are unsuitable for the patient. They are also more expensive and reimbursed at a far higher rate by federal and private insurance companies.
Compounded drugs are not to be mixed or marketed in bulk. OK Compounding provided physicians with pre-printed prescription pads that listed compounding formula choices. Participating physicians would allegedly check a box with their preferred selection and then fax it directly to the associated pharmacies, rather than writing a prescription tailored to the patient who could then take it to a pharmacy of their choice.
Johnson and Halsell, prescribed these pain creams for their patients, and in so doing, facilitated the sale and distribution of pain creams by OK Compounding. As compensation for their services, the pharmacy paid Johnson and Halsell what was characterized by the parties as medical director fees based upon an hourly rate. However, the payments the doctors received from OK Compounding were, in actuality, “kickbacks” and in violation of the False Claims Act, 31 U.S.C. §3729 et seq, due to the fact that some patients were insured by the Medicare and TRICARE federal health care programs.
Medicare is a federal government health insurance generally reserved for people who qualify due to age or disability. TRICARE is the health care program of the United States Department of Defense Military Health System for military service members and retirees. It is illegal to pay or receive “kickbacks” in conjunction with federal healthcare insurance.
Prohibitions against kickbacks are crucial to ensure that financial motives do not undermine the integrity of the medical judgment of physicians and other health care providers. The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs against health care providers.
This matter was handled by Assistant U.S. Attorney Marianne Hardcastle with the Affirmative Civil Enforcement unit and is the product of the collaborative investigative efforts of the Defense Criminal Investigative Service, Department of Labor–Office of Inspector General (OIG), IRS–Criminal Investigation, U.S. Postal Service–OIG, FBI, Department of Veterans Affairs–OIG and the Department of Health and Human Services–OIG.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
U.S. Attorney Reaches Settlement with Developer, Builder, and Architect of Mount Kisco Condominium to Increase Accessibility for People with DisabilitiesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that the United States has settled its federal Fair Housing Act (“FHA”) lawsuit against BEDFORD DEVELOPMENT LLC, CARNEGIE CONSTRUCTION CORP., JOBCO INC., ROBERT PASCUCCI, and WARSHAUER MELLUSI WARSHAUER ARCHITECTS, P.C. (collectively, “Defendants”). The settlement requires Defendants to pay up to $195,000 for retrofits at the Sutton Manor condominium in Mount Kisco, New York, in order to make the individual units and the common areas of the building more accessible to individuals with disabilities, and to pay $330,000 to compensate aggrieved persons and to reimburse attorneys’ fees. The resolution of this lawsuit was approved today by U.S. District Judge Kenneth M. Karas.
U.S. Attorney Geoffrey S. Berman said: “For almost 30 years, the Fair Housing Act has required newly built residential buildings to be accessible to people with disabilities, but some housing providers continue to disregard that requirement. The flouting of the accessibility requirements was particularly egregious here, where the condominium was specifically advertised to older New Yorkers. This Office will continue to use all legal tools available to enforce the Fair Housing Act and ensure that persons with disabilities have full access to residential buildings in this district.”
The Fair Housing Act’s accessible design and construction provisions require new multifamily housing complexes constructed after 1991 to have basic features accessible to persons with disabilities. According to the allegations in the complaint, Sutton Manor was designed and constructed by Defendants with numerous inaccessible features, including insufficiently wide door openings, lobby doors requiring excessive force to operate, excessively high thresholds at the entrances to the patios or balconies, insufficiently wide doors leading to patios or balconies in individual units, excessively high thresholds at the entrance to showers, and insufficiently clear floor space in the hallways and kitchens for maneuvering by persons who use wheelchairs.
Among the aggrieved persons who will be compensated through this settlement are Michael and Linda Tracey, Mark and Gloria Koller, and Ina Grober (“Intervenor-Plaintiffs”), who each purchased and moved into units at Sutton Manor in 2007, in part because certain of the Defendants advertised Sutton Manor as being accessible to persons with disabilities. The Intervenor-Plaintiffs initiated this action by filing an administrative complaint with the U.S. Department of Housing and Urban Development (“HUD”) and then, after HUD determined that there was reasonable cause to believe that the Fair Housing Act had been violated, electing to have HUD’s determination resolved in federal court. In these circumstances, the Fair Housing Act authorizes the Department of Justice to commence an action in the United States District Court on behalf of the complainants and assert other claims as warranted.
Other aggrieved persons may be entitled to monetary compensation from the fund created through today’s settlement. Aggrieved persons may include those who:
- Were discouraged from living at Sutton Manor because of the lack of accessible features;
- Have been hurt in any way by the lack of accessible features at Sutton Manor;
- Paid to have an apartment at Sutton Manor made more accessible to persons with disabilities; or
- Otherwise were discriminated against on the basis of disability at Sutton Manor as a result of the inaccessible design and construction of the properties.
Any individual who may be entitled to compensation can file a claim by contacting the Civil Rights Complaint Line at (212) 637-0840, using the Civil Rights Complaint Form available on the United States Attorney’s Office’s website http://www.justice.gov/usao/nys/civilrights.html, emailing us at [email protected], or by sending a written claim to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York 10007
Attention: Chief, Civil Rights Unit
Since 2010, the Office has filed nearly 30 lawsuits to enforce the FHA to combat racial, gender, and disability discrimination in housing, including in the areas of design and construction, sexual harassment, and fair lending.
Mr. Berman thanked HUD for its efforts in the investigation.
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorney Christine S. Poscablo is in charge of the case.
U.S. Attorney Jason R. Dunn Delivers Remarks at Islamic Center of Boulder in Wake of New Zealand MassacreRead the Press Release
DENVER – U.S. Attorney Jason Dunn and senior staff attended a vigil yesterday for victims of the mass shooting in New Zealand. Please find U.S. Attorney Dunn’s remarks below.
Text of U.S. Attorney Jason Dunn’s remarks
Good Afternoon. My name is Jason Dunn, and I am the United States Attorney for the District of Colorado. In that position, I am the chief law enforcement officer for the United States here in Colorado.
I started this job 6 months ago. I was sworn in on a Friday morning. The next morning, a young man opened fire in a synagogue in Pittsburgh, killing 11. My counterpart in Pittsburgh is now prosecuting that person for 11 murders and other federal crimes.
That night, my first full day on the job, I attended an interfaith vigil here in Denver at the Temple Emanuel synagogue. Not being Jewish nor ever having been to such an event, I didn’t know what to expect.
What I saw was an amazing display of compassion, love, and most of all, community. Many religions were represented - including the Islamic faith - and I had the opportunity to meet several leaders of your community.
As I started my job in earnest that next Monday, I quickly learned how engaged my office was with various religious groups throughout Colorado. We not only regularly meet with various religious groups to discuss how our office can protect the public while ensuring civil rights, but we have taken the affirmative step to develop a training program to help houses of worship better protect themselves from events like those in Pittsburgh, and now New Zealand.
I also quickly learned that there are more than 180 men and women in my office who work for the cause of Justice every day. On behalf of each of them I bring you this important message: we stand with this community.
Our houses of worship are protected places. They are protected because this is where we are most vulnerable. And it is here where we exercise one of our most fundamental rights.
The time, place, and manner of attacks in New Zealand were calculated to inflict the most damage possible. Ripping 50 lives from this earth at a time when they were most vulnerable — savaging the sanctity of prayer.
This calculated attack was designed to instill terror and fear not just in New Zealand, but around the world.
That’s why it’s so important to come together as a community.
Fear diminishes freedom. Our country prides itself on freedoms — freedom of speech, of religion, freedom of the right to assemble. This is part of what makes our country such a wonderful place to live. These rights belong to all of us, and we must not let fear take them away.
I want each of you to know that my office and I will enforce the laws to ensure that everyone here is safe — and feels safe — in their house of worship.
After this week’s attack in New Zealand, the prime minister identified two things the world must do in response. The first: show our support for the community directly impacted by this tragedy. And that’s what we are doing here this afternoon.
Prime Minister Ardern has noted that New Zealand is a land that welcomes diversity. She says there are more than 200 ethnicities in New Zealand. 160 languages spoken. Diversity unites the country and compassion is a shared value.
The Muslim community that was attacked had chosen Christchurch as their home. Many were refugees. And they came to New Zealand because that is where they felt safe to come and practice their faith, and to be part of a community.
What other country does this sound like? America is also a land of tremendous diversity. Instead of 160 languages, more than 350 languages are spoken in American homes.
Our country embraces diversity and understands that diversity, when combined with the rule of law, makes us stronger. Together, they define our national fabric.
This makes it is easy for us to do the second thing Prime Minister Ardern did in response to these attack: to clearly condemn and reject the ideology that motivated the savagery in New Zealand.
Prime Minister Ardern says there is no place for that ideology in New Zealand. And indeed, there is no place for that ideology in the World, in the U.S., or in Colorado.
I close with this — please know we stand with you.
We grieve with you.
And, most importantly, know that our office will enforce the laws that protect this and all other houses of worship.
U.S. Air Force Member Charged with Producing and Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment Thursday against Bryce Carter Studebaker, 22, currently stationed at Beal Air Force Base, charging him with four counts of producing and attempting to produce child pornography and four counts of receiving child pornography, U.S. Attorney McGregor W. Scott announced. Studebaker was arrested this morning.
According to court documents, Studebaker produced and received sexually explicit images of a minor on four occasions between December 31, 2017, and March 30, 2018.
This case is the product of an investigation by the U.S. Air Force Office of Special Investigations. Assistant U.S. Attorney André M. Espinosa is prosecuting the case.
If convicted, Studebaker faces a maximum statutory penalty of 30 years in prison for each count of producing and attempting to produce child pornography, a maximum statutory penalty of 20 years in prison for each count of receiving child pornography, and a $250,000 fine on all counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Two New Jersey Men Arraigned in Reverse Mortgage SchemeRead the Press Release
TRENTON, N.J. – A Passaic County, New Jersey, man and a Bergen County, New Jersey, man have been arraigned for their respective roles in a reverse mortgage scheme that took advantage of several elderly homeowners, U.S. Attorney Craig Carpenito announced today.
Rafael Peralta, 46, of Clifton, New Jersey, and Philip Puccio Jr., 40, of Mahwah, New Jersey, were indicted Feb. 8, 2019, by a federal grand jury on one count of conspiracy to commit bank fraud and six counts of bank fraud. They were arraigned March 15, 2019, before U.S. District Judge Anne E. Thompson in Trenton federal court.
According to documents filed in this case and statements made in court:
From November 2007 through December 2010, Peralta and Puccio, home repair contractors, allegedly conspired to fraudulently obtain Home Equity Conversion Mortgage (HECM) – also known as reverse mortgage – proceeds by submitting inflated and fraudulent documentation to various victim banks to influence their decision to approve and fund HECMs. Peralta and Puccio recruited a conspirator to prepare inflated real estate appraisals that falsely increased the value of the properties securing the HECMs, thereby influencing each lender’s decision to provide loans in amounts greater than what would otherwise be available.
Peralta and Puccio also caused the submission of false and fraudulent loan documents that actively concealed the disbursement of loan proceeds to Peralta, Puccio, and entities they owned and controlled. The diverted loan proceeds were deposited into bank accounts controlled by Peralta and Puccio and used for their personal benefit and to further the conspiracy.
The conspiracy to commit bank fraud and bank fraud charges carry a maximum potential penalty of 30 years in prison, a fine of $1 million, or twice the gross pecuniary gain by the defendants or twice the gross pecuniary loss to others, whichever is greater.
U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency, Office of the Inspector General, under the direction of Acting Special Agent in Charge Robert Manchak; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; and special agents of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading the charges.
The government is represented by Special Assistant U.S. Attorneys Kevin Di Gregory and Charlie Divine of the U.S. Attorney’s Office Criminal Division in Newark and the Federal Housing Finance Agency, Office of the Inspector General.
Defense counsel:
Peralta: TBD
Puccio: Kevin Roe Esq., Hackensack, New JerseyTwo Jackson County Men Indicated on Drug ChargesRead the Press Release
Two Jackson County, Illinois, men have been indicted on federal methamphetamine-related charges, Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today. Jonathan R. Moore, a/k/a "J-Mo," 33, of Carbondale, and Elijah S. Lacy, a/k/a "E," 34, of Murphysboro, were indicted in a three-count indictment. Count 1 charges that, between December 2018 and January 28, 2019, Moore and Lacy conspired to distribute 500 grams or more of methamphetamine. Count 2 charges that, on January 28, 2019, Moore knowingly and intentionally attempted to possess with intent to distribute 500 grams or more of methamphetamine. Count 3 charges that, on January 28, 2019, Lacy knowingly and intentionally attempted to possess with intent to distribute 500 grams or more of methamphetamine. The offenses are alleged to have occurred in Jackson County. Each violation carries a maximum penalty of 10 years to life imprisonment, up to a $10,000,000 fine, and supervised release of not less than 5 years.
The indictment was returned on March 5, 2019. On March 13 and March 14, Lacy and Moore appeared in federal court and pleaded not guilty to the charges. Both Moore and Lacy have been ordered held without bond pending a May 20, 2019, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The Drug Enforcement Administration and the United States Postal Inspection Service are conducting the ongoing investigation. The Murphysboro Police Department, Jackson County Sheriff’s Office, Carbondale Police Department, and Jackson County State’s Attorney’s Office also assisted in the investigation.
Three East Bay Defendants Indicted for Conspiring to Defraud the United StatesRead the Press Release
OAKLAND –A federal grand jury handed down a superseding indictment charging Ali Mugalli Hassan, Mugalli Ahmed Hassan, and Ahmed Ahmed Hasan Dharahan with conspiracy to defraud the United States, benefits fraud, conspiracy to commit wire fraud, and wire fraud, announced United States Attorney David L. Anderson and United States Department of Agriculture Office of Inspector General (USDA-OIG) Western Region Special Agent-in-Charge Lori Chan.
According to the superseding indictment issued on March 14, 2019, and unsealed this morning, defendant Ali Mugalli Hassan, 29, of Alameda, Calif., owned and operated a convenience store on International Boulevard in Oakland. Members of Ali Mugalli Hassan’s family served as cashiers at the store, including co-defendants Mugalli Ahmed Hassan, 48, and Ahmed Ahmed Hasan Dharahan, 38, both of Oakland. The superseding indictment alleges the defendants defrauded the USDA by unlawfully trafficking federal benefits.
The convenience store was an authorized vendor for the USDA’s Supplemental Nutritional Assistance Program (SNAP) (formerly known as the Food Stamp Program). SNAP helps economically disadvantaged persons pay for essential food items for themselves and their families. Program recipients receive their benefits via an electronic benefits transaction (EBT) card, which operates much like a debit card but limits purchases to program-eligible items. The store conducted a high-volume of SNAP transactions, including redeeming over $2.3 million in SNAP benefits between August 2014 and November 2017. According to the superseding indictment, the defendants purchased benefits from store customers for 50 cents on the dollar, thus enabling the customers to use the cash they received for any purpose. The defendants then conducted fraudulent SNAP transactions through the convenience store and redeemed the full dollar value of the benefits from the USDA. As part of the scheme, the defendants and others also kept customers’ EBT cards and used these cards at other stores to purchase items for themselves using the federal benefits.
Each defendant was charged with one count of conspiracy to commit benefits fraud and to defraud the United States, in violation of 18 U.S.C. § 371; one count of benefits fraud, in violation of 7 U.S.C. § 2024(b); one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; and twelve counts of wire fraud and aiding and abetting, in violation of 18 U.S.C. § 1343 and 18 U.S.C. § 2.
Defendants were arrested and made their initial appearance this morning in federal court in Oakland before U.S. Magistrate Judge Kandis A. Westmore. Magistrate Judge Westmore arraigned the defendants and released them on bond. The Court also scheduled appearances tomorrow for identification of counsel for Ahmed Ahmed Dharahan and Ali Mugalli Hassan, as well as further bond hearings for all three defendants.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face the following maximum statutory sentences:
Charge
Maximum Statutory Sentence
Conspiracy to Commit Benefits Fraud and to Defraud the United States
5 years of imprisonment
$250,000 fine
Benefits Fraud ($5,000 or more)
20 years of imprisonment
$250,000 fine
Conspiracy to Commit Wire Fraud
20 years of imprisonment
$250,000 fine
Wire Fraud (each count)
20 years of imprisonment
$250,000 fine
In addition, the court may order up to three years of supervised release (for each count), additional assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Katie Burroughs Medearis is prosecuting the case with the assistance of Jessica Rodriguez Gonzalez. The prosecution is the result of an investigation led by the USDA-OIG with the assistance of the Oakland Police Department, U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Third and Final Defendant Pleads Guilty in Pawn Shop Scheme to Sell Stolen GoodsRead the Press Release
Baltimore, Maryland – On Friday, March 15, 2019, David Gutman, age 55, of Baltimore, Maryland, pleaded guilty to a wire fraud conspiracy in connection with a scheme to accept and sell stolen goods from the Chesapeake Pawn Brokers, in Edgewood, Maryland. Two co-defendants, Marina Gelfen, age 55 of Reisterstown, Maryland and Dmitry Babich, age 48, of Owings Mills, Maryland, previously pleaded guilty to the same charge. Gelfen and Babich owned and managed Chesapeake Pawn, where Gutman was an employee.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Sung “Jimmy” Yi of the United States Secret Service - Baltimore Field Office; and Harford County Sheriff Jeffrey R. Gahler.
According to their plea agreements, between January 1, 2015, and July 8, 2018, Gelfen, Babich, and Gutman paid cash to “boosters,” a common term for shoplifters, in exchange for merchandise stolen from Home Depot. The products include exclusive brands sold only through the Home Depot, such as Makita, Ryobi, Ridgid, and other brand power tools, to include drills, wrenches, saws, and lithium batteries. The products were frequently new and still in the original store box. The conspirators sold the items on eBay, with the payments being made through PayPal.
As detailed in their plea agreements, the conspirators bought these items from boosters at Chesapeake Pawn, at far less than their retail value, knowing that the boosters stole them directly from Home Depot. Gelfen and Gutman admitted that they paid boosters over $70,000 for stolen products, while Babich paid boosters over $11,000 during the year that he was part of the conspiracy. The conspirators listed and sold the stolen items on eBay under at least eleven different eBay user names, including the names of relatives and associates, in an effort to conceal the high volume of transactions. From January of 2015 through May 2018, those eBay accounts recorded over $1.5 million in sales. The conspirators would advertise much of the merchandise that they bought from boosters on eBay as “NEW,” “Brand New,” and “Sealed.”
Between July 2015 and July 14, 2018, an undercover officer from the Harford County Sheriff’s Office posed as a booster, and on at least five occasions brought items purportedly stolen from Home Depot to Chesapeake Pawn to sell. The defendants all purchased items from the undercover, knowing they were stolen, and later sold those items on eBay.
As a licensed pawn broker business, Chesapeake Pawn is required to enter all items that are sold to Chesapeake Pawn into the Regional Automated Property Information Database (RAPID) within 24 hours of the purchase date. RAPID is a law enforcement tool used for tracking transactions conducted by pawn brokers in an effort to guard against the sale of, and to aid in the recovery of, stolen merchandise. The conspirators entered many of the stolen items into the RAPID system, even though they knew the items were stolen.
As part of their plea agreements, Gelfen, Gutman, and Babich are all required to forfeit any proceeds or property obtained as a result of the scheme, and to pay restitution totaling $132,605.30.
The defendants each face a maximum sentence of 20 years in prison for the wire fraud conspiracy. U.S. District Judge Richard D. Bennett has scheduled sentencing for Gelfen on June 3, 2019, for Babich on June 5, 2019, and for Gutman on June 19, 2019, all at 3:00 p.m.
United States Attorney Robert K. Hur commended the Secret Service and the Harford County Sheriff’s Office for their work in the investigation and thanked investigators from Home Depot for their assistance. Mr. Hur thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
# # #Texas Resident Heads to Prison for Using a Firearm to Rob Local WhataburgerRead the Press Release
CORPUS CHRISTI, Texas – A 22-year-old Beaumont resident has been ordered to federal prison following his conviction for robbery and brandishing a firearm during a crime of violence, announced U.S. Attorney Ryan K. Patrick. Dveaunta Montez Hall pleaded guilty Dec. 17, 2018.
Today, Senior U.S. District Judge John D. Rainey sentenced Hall to 100 months in federal prison - 16 months for the robbery offense as well as a 84-month consecutive term for brandishing a firearm during a crime of violence. The prison term will be immediately followed by five years of supervised release.
On March 14, 2018, the Corpus Christi Police Department (CCPD) responded to an aggravated robbery at the Whataburger located in the 4100 block of South Staples. Hall had entered the business and pointed an assault rifle at employees and customers inside while demanding money from the register. The male then fled the location on foot.
Shortly thereafter, responding officers located Hall, who still had the assault rifle in his possession, near the location. During the investigation, officers discovered Hall had stolen the assault rifle from a nearby apartment shortly before committing the robbery.
Hall will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility.
CCPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Staten Island Attorney Pleads Guilty to Fraud and Extortion SchemeRead the Press Release
Earlier today in federal court in Brooklyn, Richard Luthmann, a Staten Island attorney, pleaded guilty to wire fraud conspiracy and extortion conspiracy before United States Magistrate Judge Ramon E. Reyes, Jr. As part of his guilty plea, Luthmann stipulated that he obstructed justice following his arrest, by sending a threatening letter to a potential witness whom he believed was cooperating with the government and violating a court order regarding discovery materials.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan Carson, Special Agent-in-Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office (Commerce), announced the guilty plea.
Beginning in summer 2015, Luthmann, co-defendant George Padula and the victim participated in a scheme in which they contracted with overseas companies to sell and ship them containers of valuable scrap metal, but instead packed the containers with cheap filler material, such as concrete blocks. As part of the scheme, Luthmann registered shell companies, including Omni Metal Corporation, with the New York Department of State and recruited a client of his law practice to be the nominal president of Omni. At the direction of Luthmann and Padula, the client opened bank accounts to facilitate the fraud, and between October 2015 and December 2015, the over-seas companies wired over $500,000 to those accounts. That money was then transferred into accounts controlled by Luthmann or a co-conspirator.
On December 5, 2016, Luthmann lured the victim to his law office, ostensibly to sign some paperwork. Once there, Padula and co-defendant Michael Beck blocked the victim from leaving. Beck then pulled out a firearm, aimed it at the victim’s head and knee, and claimed the victim owed him $10,000 because Beck had purchased a $7,000 debt that the victim owed Padula, plus a $3,000 “vig,” or interest payment, that Beck had added. The victim was then permitted to leave, but not before being warned by Padula not to contact the police.
When sentenced, Luthmann faces a maximum sentence of 20 years’ imprisonment on each count.
Padula and Beck have previously pleaded guilty, respectively, to wire fraud conspiracy (Padula), kidnapping conspiracy (Beck), extortion conspiracy and use of a firearm in connection with a crime of violence (Padula and Beck).
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United Attorneys Moira Kim Penza and James P. McDonald are in charge of the prosecution.
The Defendants
RICHARD LUTHMANN
Age: 39
Staten Island, New YorkGEORGE PADULA III
Age: 30
Staten Island, New YorkMICHAEL BECK
Age: 60
Staten Island, New YorkE.D.N.Y. Docket No. 17-CR-664 (JBW)
Springfield Man Sentenced to 10 Years for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for enticing a person whom he believed to be a minor (but who was actually an undercover law enforcement officer) to engage in illicit sex.
Daniel Rowland, 55, was sentenced by U.S. District Judge Brian C. Wimes to 10 years in federal prison without parole. The court also sentenced Rowland to 15 years of supervised release following incarceration.
Rowland, who pleaded guilty on May 21, 2018, admitted that he posted a Craigslist advertisement seeking a “younger babygirl.” A detective with the Greene County Sheriff’s Department, operating in an undercover capacity, sent an email to Rowland. The detective portrayed a 14-year-old female. During the course of multiple email exchanges, Rowland made clear that he wanted to establish a “boyfriend/girlfriend” relationship, which would have to remain secret.
As the email exchanges continued, Rowland’s messages became more sexual in nature. Rowland sent sexually explicit videos along with messages explaining that he wanted to engage in those sexual acts with her. They arranged a meeting, and when Rowland arrived at the location, he was arrested.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), and the Greene County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."South Charleston Man Pleads Guilty to Gun and Meth ChargesRead the Press Release
CHARLESTON, W.Va. – A South Charleston man pled guilty today to distribution of methamphetamine and felon in possession of firearms charges announced United States Attorney Mike Stuart. Brandon Starr Clemons, 33, entered his guilty plea before United States District Judge Joseph R. Goodwin. Stuart commended the investigative efforts of the Metropolitan Drug Enforcement Network Team (MDENT) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Meth. Felon. Guns,” said United States Attorney Mike Stuart. “We’re prosecuting so many of these cases, I’m starting to feel like Bill Murray in Groundhog Day. Great work as always by MDENT and ATF.”
On December 12 and 13, 2016 Clemons sold methamphetamine to an MDENT informant. On December 13, 2016, police executed a search warrant at Clemons’ Ford Street address in South Charleston where they recovered two semiautomatic pistols. Clemons told the officers that he had sold approximately one ounce of methamphetamine in the days leading up to his arrest. Clemons had previously been convicted in Kanawha County Circuit Court in 2008 of delivery of a controlled substance.
Clemons faces up to 30 years in federal prison when his is sentenced on June 20, 2019. Assistant United States Attorney Joshua C. Hanks is responsible for the prosecution.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Sisseton Man Charged with Aggravated Sexual Abuse of a Child Appears in Federal CourtRead the Press Release
United States Attorney Ron Parsons announced that a Sisseton, South Dakota, man has been indicted by a federal grand jury for aggravated sexual abuse of a child and for abusive sexual contact.
Storm Gaylord Blue, age 25, was indicted on December 4, 2018. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 5, 2019, and pled not guilty to the Indictment.
According to the Indictment, in October 2017, in Roberts County, South Dakota, Blue engaged in forcible sexual acts with a child. The maximum penalties upon conviction for each count are as follows: life imprisonment, a $250,000 fine, or both; a mandatory minimum term of five (5) years, up to life, of supervised release; $100 special assessment for victim/witness fund; $5,000 assessment to the domestic trafficking fund; and restitution may be ordered.
The charges are merely accusations and Blue is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sisseton-Wahpeton Oyate Sioux Tribe’s Law Enforcement and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Blue was remanded to the custody of the U.S. Marshals Service. A trial date of May 14, 2019, has been set.
Silver Spring Man Sentenced to 35 Years in Federal Prison for FirebombingRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Darius Eric Wilder, age 41, of Silver Spring, Maryland, to 35 years in federal prison, followed by five years of supervised release for committing arson, and for using, carrying and possessing a destructive device during and in furtherance of a crime of violence, related to the firebombing of his ex-girlfriend’s apartment. A federal jury convicted Wilder of those charges on August 16, 2018.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County Police Department, and Fire Chief Scott Goldstein of the Montgomery County Fire and Rescue Service.
“The evidence at trial proved that Darius Wilder attempted to firebomb his ex-girlfriend’s apartment,” said U.S. Attorney Robert K. Hur. “This kind of violence will not be tolerated. If he had been successful in starting the fire, Wilder could have killed all of the residents of the apartment complex where the victim resided, including the woman and her three children. We are all safer with Darius Wilder removed from the community for 35 years in federal prison, where there is no parole – ever.”
“Darius Wilder is a violent criminal who used Molotov cocktails to commit arson in an attempt to seriously injure his ex-girlfriend, her children, and endanger the surrounding community,” said ATF Special Agent in Charge Rob Cekada. “We are glad to see that justice has been served and remain committed to working alongside our law enforcement and emergency service partners to stop violent offenders like this.”
According to the information presented at Wilder’s four-day trial, on April 15, 2017, at approximately 9:22 p.m. the Montgomery County Fire and Rescue Service responded to a fire on the balcony of an apartment in Gaithersburg, Maryland, which they located and extinguished. Investigators from the Montgomery County Office of Fire and Explosives Investigation conducted an investigation and located two incendiary bombs, commonly known as Molotov cocktails. One of the Molotov cocktails was on the balcony of the apartment, and damaged the wooden decking and children’s bikes. The second Molotov cocktail was on the ground below. The liquids within the bottles as well as wick material found in the debris field were submitted to the ATF Forensic Science Laboratory, which later confirmed the presence of gasoline. The ATF National Laboratory Center also conducted DNA analysis of the bottles and found that Wilder was a possible contributor to the DNA profile found on one of the Molotov cocktails.
According to trial testimony, at the time of the fire, the woman who leased the apartment resided there with three children. The woman had recently attempted to end a relationship with Wilder, but Wilder continued to contact the woman. The evidence showed that in February 2017, Wilder threatened to light himself on fire and sent several photographs, depicting a gas can and a lighter with a flame, via numerous text messages to her. Evidence presented at trial, including cell site location information, demonstrated that on March 8 and March 9, 2017, Wilder loosened and removed the lug nuts from the tires on the woman’s vehicle. Later in March 2017, the woman discovered broken glass placed in front of her car tire. Google searches found on Wilder’s cellphone during a forensic analysis also showed that on March 18, 2017 Wilder searched for images of gas lines and brake lines found under the type of vehicle driven by the woman. Finally, the evidence showed that on April 15, 2017, the day of the firebombing, Wilder texted and called the woman repeatedly, with the last text occurring at 9:13 p.m. Cell location data established that Wilder’s cell phone was located in the area of the apartment complex at around the time of the fire.
Witnesses testified that on April 18, 2017, law enforcement saw Wilder leave his residence carrying a cooler with a black trash bag on top. Wilder got into his vehicle and drove away. Law enforcement attempted to stop Wilder’s vehicle, but Wilder rammed a police vehicle and ran away. Montgomery County Police officers pursued and arrested Wilder. A search of the vehicle recovered three lighters, a black plastic bag containing a gas can with gasoline, a 48-quart red cooler, a backpack containing a composition book and a tire iron. According to trial testimony, following his arrest, Wilder admitted to law enforcement that he filled up a gas can at a gas station nearby, transferred the gas into the bottles, and put the bottles together on the side of the house.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF, the Montgomery County Police Department, the Montgomery County Fire and Rescue Service, and the Federal Bureau of Investigation Cellular Analysis Survey Team (CAST) for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jennifer Sykes, who prosecuted the case.
# # #
Salvadoran National Sentenced for Illegal Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Salvadoran national was sentenced on Friday, March 15, 2019, in federal court in Boston for illegal possession of a firearm and ammunition.
Juan Martinez Sola, 22, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to time served in prison, approximately 16.5 months, and three years of supervised release. Martinez Sola will face deportation proceedings upon completion of his sentence. In November 2018, Martinez Sola pleaded guilty to one count of being an illegal alien in possession of a firearm and ammunition.
On Nov. 1, 2017, Martinez Sola, who unlawfully entered the United States in 2012, was arrested in possession of a loaded firearm in East Boston.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police made the announcement today. The U.S. Marshals Service has provided crucial assistance with the case.
Project Safe Neighborhoods Efforts Spur Record Breaking Number of Federal Gun Prosecutions and Significant Violent Crime Reductions in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced a record-breaking number of federal gun prosecutions in 2018 as part of on-going Project Safe Neighborhoods (PSN) efforts to reduce violent crime in Huntington. In early 2018, soon after taking office, Stuart joined forces with the Huntington Police Department, City of Huntington officials and federal, state and local law enforcement partners to launch Project Huntington to identify and prosecute the most violent offenders. The focused collaboration has met with staggering results.
The City of Huntington saw a dramatic decline in violent crime in 2018, reversing the sharp rise in violent crime that occurred in the City in 2017. Homicides dropped by 53% in the city and overall violent crime offenses dropped approximately 20% in calendar year 2018.
The Operation Saigon Sunset takedown in April 2018 was a seminal event that delivered a knockout blow to the City’s violent crime. The OCDETF investigation culminated into a massive takedown of violent drug offenders, dismantling a multi-state drug trafficking organization responsible for bringing a significant amount of fentanyl, heroin and violence into Huntington. In conjunction with the takedown, approximately 60 other individuals were arrested on various federal and state violent crime, firearms and drug related charges. Just as violent crime numbers began trending downward post takedown, first responders report that overdoses in the city, which had previously been some of the highest in the state, began trending downward as well. Treatment professionals also report an increase in substance use disorder treatment referrals following the April takedown.
The year also brought a record number of new prosecutors to the Stuart’s office, four of which were specifically allocated to prosecute violent crimes. In the last year, Stuart has more than doubled the number of federal prosecutors assigned to his office in Huntington. With the additional resources, the U.S. Attorney’s Office-SDWV prosecuted over 100 defendants for firearms-related offenses in calendar year 2018. In FY 2018, there was a 25% increase in the number of defendants charged with firearms offenses in the District, further representing a 74% increase from the average number of defendants prosecuted in FY 2014 through 2017.
“When I became United States Attorney, the City of Huntington was under siege,” said United States Attorney Mike Stuart. “From the day I took the oath of office, I made the City of Huntington one of my priorities and vowed to work with all our partners to take the streets back from the diabolical drug dealers and drug thugs who have caused destruction, death and despair. While we have made tremendous progress over the last year, you won’t find us resting on our laurels. There is still much work left to do.”
“The Huntington Police Department's PSN-based Violent Crime Initiative allows for the rapid investigation, timely apprehension and thorough prosecution of criminals before they can become violent offenders in our City,” said Huntington Police Chief Hank Dial. “Our partnership with the DEA, the ATF, the U.S. Marshals Service and U.S. Attorney Mike Stuart's Office has greatly enhanced our local efforts to reduce violent crime in Huntington. PSN is an essential program to our effort of keeping the citizens of our country safe.”
“ATF strives to be ‘no better partner’ to other law enforcement agencies,” stated ATF Special Agent in Charge Stuart Lowrey of the Louisville Field Division. “During the past year, this partnership investigated illegal sources of crime guns and persons who illegally possessed or used guns to commit violent crimes in the Huntington area. Together, we aggressively pursued ‘traffickers and trigger pullers,’ making use of crime gun intelligence to disrupt the shooting cycle. These efforts support the Department of Justice’s Project Safe Neighborhoods in making our communities safer for everyone.”
“The success of the Project Safe Neighborhoods initiative is a testament to the hard work and dedication of all the law enforcement professionals in the region working in a truly collaborative fashion,” said D. Christopher Evans, the Drug Enforcement Administration’s Special Agent in Charge for West Virginia. "We could not ask for a better group of professionals to work with toward the shared goal of reducing violent crime in Huntington and the surrounding communities.”
“This is a coordinated effort, which calls upon all levels of law enforcement to combine forces to stop gun violence and drug-fueled crimes in our neighborhoods, and to increase community safety,” said Special Agent in Charge Robert Jones. “The residents of Huntington have been dealing with the drugs and violence for far too long. We will continue to use all of our tools available to make sure people who bring violence to these streets are punished to the fullest extent of the law.”
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Ponchatoula Man Sentenced for Receipt of Materials Involving the Sexual Exploitation of Minors and for Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DANIEL JUSTIN MAHAN, age 43, a resident of Ponchatoula, Louisiana, was sentenced Thursday, March 14, 2019 by United States District Judge Mary Ann Vial Lemmon to 151 months imprisonment, having pleaded guilty to receipt of materials involving the sexual exploitation of minors and violation of the Federal Gun Control Act. Upon release from imprisonment, he will serve a 5 year term of supervised release.
According to previously filed court documents, MAHAN was arrested on March 15, 2018, by Special Agents of the Federal Bureau of Investigation (FBI) subsequent to the execution of a search warrant at his home. MAHAN was found to be in possession twenty-four (24) weapons and over 26,000 rounds of ammunition. MAHAN has a prior felony conviction for bank robbery which prohibits him from possessing firearms and ammunition. The FBI’s investigation further revealed that MAHAN was also in possession of a laptop computer which contained images depicting the sexual victimization of prepubescent children.
This case, which was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Tracey N. Knight, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Pittsburgh Woman Pleads Guilty in Crack Cocaine Distribution ConspiracyRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, pleaded guilty in federal court to a charge of conspiracy to distribute crack cocaine, United States Attorney Scott W. Brady announced today.
Mardeja Chapple, 24, pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Mardeja Chapple and her co-conspirators distributed 28 grams or more of crack cocaine in and around the area of the Greenway Projects.
Judge Schwab scheduled sentencing for June 24, 2019 at 11 a.m. The law provides for a total sentence of not less than 10 years and up to life in prison, a fine of $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorneys Tonya Sulia Goodman and Rachael Dizard are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation, which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, that led to the prosecution of Mardeja Chapple.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pierre Man Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Arlyn Keckler, age 38, was indicted on February 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 12, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison, including a mandatory minimum of 10 years in federal prison and/or a $10,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown but no later than on May 1, 2015, and continuing to February 13, 2019, in South Dakota, Keckler knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance.
The charge is merely an accusation and Keckler is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Cheyenne River Sioux Tribe Law Enforcement Services, and the Norther Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Keckler was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Philadelphia man sentenced for drug chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Anthony Lamont Lott, of Philadelphia, Pennsylvania, was sentenced today to 115 months incarceration for drug charges, United States Attorney Bill Powell announced.
Lott, also known as “Ant,” age 50, pled guilty to one count of “Possession with Intent to Distribute Cocaine Base” and one count of “Possession with Intent to Distribute Methamphetamine” in September 2018. Lott admitted to distributing cocaine base and methamphetamine in July 2017 and August 2018 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Martinsburg Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Pennsylvania Man Convicted at Trial of Filing Retaliatory Liens Against Multiple Public Officials Is SentencedRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Clarence Hoffert, 58, who was convicted by a federal jury of filing false retaliatory liens against federal officers and employees, was sentenced to serve 48 months in prison by Chief U.S. District Judge Christopher C. Conner, U.S. District Judge for the Middle District of Pennsylvania. This sentence will be served consecutive to a 32 year sentence the defendant is currently serving for statutory rape in PA.
Assistant U.S. Attorneys Wei Xiang and Jonathan P. Cantil, from the Western District of New York, who handled the prosecution of the case at trial, stated that in August of 2017, the defendant declared a state of “Domestic Mixed War” in a “Claim of Commercial Lien Affidavit” that he filed in Erie, PA, against seven public officials. The seven alleged lien debtors included three federal judges, two members of the U.S. Department of Justice Civil Division’s Torts Branch, and two officials of the Commonwealth of Pennsylvania Department of Corrections.
Hoffert, an inmate at State Correctional Institution in Albion, declared that the seven public officials owed him $56,000,000. In his claim, the defendant stated that each official had committed 32 different crimes, at $250,000 in damages per crime, thereby making each alleged lien debtor accountable for payment of $8,000,000.The course of events started in 2013 when Hoffert brought a civil action in the United States District Court for the Western District of Pennsylvania against the Commonwealth of Pennsylvania, relating to his imprisonment on a state conviction. The magistrate judge assigned to the case recommended dismissal of Hoffert’s complaint, and the district judge assigned to the case adopted the recommendation. A panel of the Third Circuit Court of Appeals affirmed the judgment of the district court. Following his failed appeal, Hoffert filed an administrative claim for damages with the Torts Branch of the U.S. Department of Justice Civil Division in Washington, DC. The Torts Branch denied the claim. The defendant responded to the denial with a letter threatening to add the Torts Branch to his tort claim. The Torts Branch replied with another copy of the denial letter. As a result of this series of denials, the defendant attempted to file the lien in retaliation against the two signors of the Torts Branch letters, along with the aforementioned magistrate judge, district judge, and a member of the circuit panel.
In reaching a guilty verdict, jurors determined that the attempted lien filed by the defendant was false and that Hoffert knew, or had reason to know, that material information included in the attempted lien was in fact false.
The United States Attorney’s Office for the Western District of Pennsylvania was recused from the case, and as a result, it was prosecuted by the United States Attorney’s Office for the Western District of New York.
Today’s sentencing is the result of an investigation by the U.S. Marshal Service, Western District of Pennsylvania.
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North Suburban Man Sentenced to 5 Years in Federal Prison for Operating Ponzi Scheme That Swindled Elderly InvestorsRead the Press Release
CHICAGO — A north suburban man was sentenced today to five years in federal prison for swindling more than $1.4 million from several clients, some of whom were elderly and had pledged their retirement savings.
RICHARD K. BOOY, the founder of Principal Financial Strategies LLC and Safe Financial Strategies Inc., used the promise of no-risk investments and guaranteed returns to persuade at least 15 clients to hand over more than $1.4 million. Although Booy claimed to be affiliated with the more widely known investment firm Principal Financial Group, he had no actual relationship with the firm and was not authorized to invest client funds with it. Instead of investing the funds as promised to clients, Booy used the victims’ money to cover personal expenses, including health insurance, fitness club membership, and purchases at Best Buy and DirecTV, and to make Ponzi-type payments to earlier investors.
Booy, 50, of Vernon Hills, pleaded guilty last year to one count of mail fraud. U.S. District Judge Gary Feinerman imposed the 60-month sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration; and Tanya Solov, Director of the Illinois Securities Department of the Illinois Secretary of State.
“Defendant committed much of this egregious conduct while sitting in his victims’ homes and in their places of worship,” Assistant U.S. Attorney Matthew S. Ebert argued in the government’s sentencing memorandum. “While face-to-face repeatedly with his victims, Booy brazenly made his pitch knowing that his actual purpose was to obtain and then devour his victims’ savings, pensions, and income.”
Booy carried out his fraud scheme from 2012 to 2016. He continued his scheme even after Principal Financial Group obtained a temporary restraining order against him that led to a court-authorized seizure of his computer and other evidence from Booy’s home.
Most of Booy’s victims were elderly, and some furnished him with their entire life savings. The victims included a Chicago pastor, a retired painter, a retired government worker, and an individual who suffers from Parkinson’s Disease.
Nora R. Dannehy Returns to U.S. Attorney's OfficeRead the Press Release
U.S. Attorney John H. Durham today announced that Nora R. Dannehy has returned to the U.S. Attorney’s Office and will serve as Counsel to the U.S. Attorney.
Ms. Dannehy first joined the U.S. Attorney’s Office for the District of Connecticut in 1991 and served as an Assistant U.S. Attorney until April 2008 when, as the Deputy U.S. Attorney, she became Acting U.S. Attorney upon the resignation of U.S. Attorney Kevin J. O’Connor. She served as U.S. Attorney until May 2010.
Ms. Dannehy was the 49th U.S. Attorney for the District of Connecticut, and the first woman to hold the position in the history of the Office, which was established in 1789.
As an Assistant U.S. Attorney, Ms. Dannehy specialized in the prosecution of complex white collar and public corruption cases. She also served as the Professional Responsibility Officer for the District.
In September 2008, U.S. Attorney General Michael B. Mukasey appointed Ms. Dannehy to supervise a national investigation concerning the dismissal of nine U.S. Attorneys in 2006.
“Nora Dannehy has superior legal skills and an unmatched reputation for integrity,” said U.S. Attorney Durham. “During her long tenure in the Justice Department, she led some of the most sensitive investigations ever undertaken by our office. I am thrilled that Nora has chosen to return to public service and look forward to working with her and relying on her counsel and decades of legal experience to further the cause of justice for the people of Connecticut and our nation.”
Ms. Dannehy departed the U.S. Attorney’s Office in December 2010 when she was appointed Deputy Attorney General for the State of Connecticut. From October 2013 to March 2019, she was employed by United Technologies Corporation as Associate General Counsel for Global Ethics and Compliance.
Prior to her service with the U.S. Department of Justice, Ms. Dannehy was an associate with the law firm of Day, Berry & Howard from 1988 to 1991. From 1986 to 1988, she served as a law clerk to Senior U.S. District Judge T. Emmet Clarie.
Ms. Dannehy graduated from Harvard Law School in 1986 and from Wellesley College in 1983.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 68 Assistant U.S. Attorneys and approximately 57 staff members at offices in New Haven, Hartford and Bridgeport.