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Monday 18 March 2019
New York Man Pleads Guilty to Securities Fraud for Defrauding Retired Victims of More Than $400,000Read the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Rudolph Carryl, 67, formerly of Oyster Bay, N.Y., appeared before U.S. Magistrate Judge David C. Keesler late Friday, March 15, 2019, and pleaded guilty to securities fraud, for defrauding retired victims of more than $400,000. Carryl was arrested on August 29, 2018, at a halfway house in Brooklyn, N.Y., where he was serving time for federal wire fraud charges related to a separate investment scheme.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Office joins U.S. Attorney Murray in making today’s announcement.
According to plea related documents and court proceedings, Carryl held himself out as an investment advisor to his victims and operated Carryl Capital Management (CCM), an investment management firm with offices in New York City. CCM maintained a website that purported the firm adhered to rigorous risk control measures, and was dedicated to achieving the investment goals for its clients.
In or about February 2015, Carryl induced a victim identified as “M.G.” to hand over money which he promised to invest in stocks. Over the course of two years, M.G., who was Carryl’s childhood friend and a retired nurse living in North Carolina, wired more than $75,000 to an account controlled by Carryl, based on Carryl’s misrepresentations that M.G.’s money would be used to purchase stocks on M.G.’s behalf. Similarly, in or about May 2015, Carryl solicited victims “W.B.,” a retired United States Air Force veteran, and his wife “A.B.,” both of North Carolina, to invest approximately $350,000 in a purported investment fund that was managed by Carryl. To induce the retired couple to part with their money, Carryl claimed that he was a successful investment adviser who managed investments for the country of Saudi Arabia and that he was friends with wealthy celebrities.
As Carryl admitted in court, rather than invest the victims’ funds as promised, Carryl used the money to pay for personal and other expenses, and to make substantial cash withdrawals.
Unbeknownst to his victims, Carryl had been convicted of federal wire fraud charges related to a separate investment scheme, and was sentenced in New York on or about August 9, 2017, to 12 months and one day in prison. After his sentencing but before he reported to the Federal Bureau of Prisons to begin serving his sentence, Carryl continued to be in contact with W.B., assuring W.B. that his investments were doing ok, all the while failing to disclose any information about his conviction or his impending report date to the Federal Bureau of Prisons.
The securities fraud charge carries a maximum prison term of 20 years and a $5 million fine. Carryl is currently detained. A sentencing date has not been set yet.
The FBI led the investigation. Assistant United States Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
In March 2019, U.S. Attorney Andrew Murray announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: /usao-wdnc/elder-justice-initiative
Mission Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Assault by Striking, Beating, and Wounding was sentenced on March 15, 2019, by U.S. Magistrate Judge Mark A. Moreno.
Franklin Jones, age 37, was sentenced to 9 months in federal prison, followed by 1 year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Jones was indicted by a federal grand jury on October 16, 2018. He pled guilty on January 18, 2019.
The conviction stemmed from an incident that occurred on September 1, 2018, wherein Jones assaulted his domestic partner, by hitting her in the leg with a chair.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Jones was immediately turned over to the custody of the U.S. Marshals Service.
Minnesota Man Sentenced for Distributing Methamphetamine in WisconsinRead the Press Release
Madison, Wis. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Bradley Kraemer, 34, White Bear Lake, Minnesota, pleaded guilty and was sentenced on March 14, 2019, by U.S. District Judge William M. Conley to 78 months in prison for distributing methamphetamine.
Kraemer transported more than 100 grams of high quality methamphetamine from Minnesota to Monona, Wisconsin, on February 20, 2018. Judge Conley noted that this is Kraemer’s first federal conviction, though he has a lengthy criminal history, “dotted with numerous periods of incarceration, all having been brief in duration.”
The charge against Kraemer was the result of an investigation conducted by the Drug Enforcement Administration in Wisconsin and Minnesota, and the Wisconsin Department of Justice Division of Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Diane Schlipper.
McKeesport Felon Pleads Guilty to Illegally Possessing Multiple Drugs and a GunRead the Press Release
\PITTSBURGH -A former resident of McKeesport, PA, pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Deondre Lee Purter, 24, pleaded guilty to three counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Purter possessed with intent to distribute quantities of fentanyl, carfentanil, and cocaine base. In addition, Purter, a convicted felon, was in possession of firearms in furtherance of a drug trafficking crime. As a convicted felon, Purter is prohibited by federal law from possessing a firearm.
Judge Bissoon scheduled sentencing for July 11, 2019 at 10 a.m. The law provides for a mandatory minimum sentence of not less than five years in prison to a maximum of life, and a fine of up to $1,500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses, and the criminal history, if any, of the defendant.
Special Assistant United States Attorney Chad R. Parks is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Drug Enforcement Agency conducted the investigation leading to the indictment in this case.
Massachusetts Man Sentenced to 15 Years in Prison on Fentanyl Trafficking and Firearms ChargesRead the Press Release
Concord – United States Attorney Scott W. Murray announced that Joshua Smith, 31, of Haverhill, Massachusetts, was sentenced to 180 months in prison for participating in a conspiracy to distribute over 400 grams of fentanyl and to possessing a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, a drug trafficking organization that authorities allege was led by Sergio Martinez, employed the defendant to sell fentanyl to customers from various New England States, including New Hampshire. On each day that the defendant worked, the Martinez organization provided him with at least one 200-gram bag of fentanyl and expected him to sell it and return approximately $6,000 in proceeds. The defendant worked for the Martinez organization on various days. On October 20, 2017, the defendant was arrested while selling drugs for the organization. At the time, he possessed a firearm that he admitted to carrying to avoid being robbed by drug customers.
Smith previously pleaded guilty on December 18, 2018.
“Fentanyl traffickers who carry firearms present an enhanced danger to the public.” said U.S. Attorney Murray. “The law enforcement community is united in its effort to stop the flow of fentanyl and other dangerous drugs into New Hampshire. In order to protect the community, we will seek lengthy prison sentences for fentanyl traffickers, particularly those who use guns to further their criminal activities.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Smith accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic.”
This investigation was conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case was prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Seth R. Aframe.
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Massachusetts Man Sentenced to 102 Months for Heroin TraffickingRead the Press Release
CONCORD- Darrell Self, 44, of Springfield, Massachusetts, was sentenced to 102 months in prison for heroin trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on January 23, 2017, New Hampshire State Troopers conducted a traffic stop of a vehicle Self was driving on Interstate 95 near Portsmouth. During the course of the traffic stop, Self threw an object over the guardrail of the highway. Officers later recovered the object and determined that it was a bag containing approximately 40 grams of heroin. A subsequent pat-down search of Self revealed that he had a wad of cash totaling $1,106 in his pocket.
Self previously pleaded guilty to possession of heroin with intent to distribute on December 3, 2018.
“Our major highways provide ready access for the transportation of heroin and other dangerous drugs into New Hampshire,” said U.S. Attorney Murray. “Traffickers who transport the drugs face enhanced enforcement efforts and stiff prison sentences. We will continue to work closely with New Hampshire State Police and all of our law enforcement partners in order to bring this deadly trade to a halt.”
This matter was investigated by the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Jarad Hodes.
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Maryland Law Firm Meyers, Rodbell & Rosenbaum, P.A., Agrees to Pay the United States $250,000 to Settle Claims that it Did Not Reimburse Medicare for Payments Made on Behalf of a Firm ClientRead the Press Release
Baltimore, Maryland – United States Attorney for the District of Maryland Robert K. Hur announced that Meyers, Rodbell & Rosenbaum, P.A., a law firm with offices in Riverdale Park and Gaithersburg, has entered into a settlement agreement with the United States to resolve allegations that it failed to reimburse the United States for certain Medicare payments made to medical providers on behalf of a firm client.
“Attorneys typically receive settlement proceeds for and disburse settlement proceeds to their clients, so they are often in the best position to ensure that Medicare’s conditional payments are repaid,” said U.S. Attorney Robert K. Hur. “We intend to hold attorneys accountable for failing to make good on their obligations to repay Medicare for its conditional payments.”
According to the settlement agreement, in and prior to 2012, Medicare made conditional payments to healthcare providers to satisfy medical bills for a client of the firm. Under the Medicare statute and regulations, Medicare is authorized to make conditional payments for medical items or services under certain circumstances, with the requirement that when an injured person receives a tort settlement or judgment, those receiving the proceeds of the settlement or judgment, including the injured person’s attorney, are required to repay Medicare for the conditional payments.
In December 2015, with the firm’s assistance and representation, the client received a $1,150,000 settlement in a medical malpractice action stemming from the client’s injuries. After Medicare was notified of the settlement, Medicare demanded repayment of the Medicare debts incurred from those conditional payments, but the firm refused to pay the debt in full, even when the debt became administratively final.
Under the terms of the settlement agreement, the firm agreed to pay the United States $250,000 to resolve the Government’s claims. The firm also agreed to (1) designate a person at the firm responsible for paying Medicare secondary payer debts; (2) train the designated employee to ensure that the firm pays these debts on a timely basis; and (3) review any outstanding debts with the designated employee at least every six months to ensure compliance.
This settlement reminds attorneys of their obligation to reimburse Medicare for conditional payments after receiving settlement or judgment proceeds for their clients. This settlement should also remind attorneys not to disburse settlement proceeds until receipt of a final demand from Medicare to pay the outstanding debt.
U.S. Attorney Robert K. Hur commended Eric Wolfish, Assistant Regional Counsel, United States Department of Health and Human Services, Office of the General Counsel, Region III, for his work in the investigation. Mr. Hur thanked Assistant United States Attorney Alan C. Lazerow, who handled the case.
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Madras Man Found Guilty of Discharging Firearm During Road Rage Altercation on Warm Springs Indian ReservationRead the Press Release
PORTLAND, Ore.—On Friday, March 15, 2019, a federal jury found Dat Quoc Do, 28, of Madras, Oregon, guilty of two counts of unlawful use of a weapon for discharging a firearm during a road rage altercation on the Warm Springs Indian Reservation in September 2017.
“There is simply no excuse for this sort of violence in our community. Mr. Do’s actions are very serious and could have critically injured or killed an innocent motorist,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The jury clearly saw this case for what it is: an egregious and preventable overreaction to an otherwise ordinary event on the highway.”
“These acts are shocking. Handguns are not video games and this is not a movie,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “By shooting towards another car, Mr. Do put lives in danger and traumatized the occupants including a child inside the vehicle.”
According to court documents and information shared during trial, on September 14, 2017, Do was riding in the front passenger seat of a vehicle driven by his girlfriend, Thao Bich Tran. The two were driving at night eastbound on Highway 26 on the Warm Springs Indian Reservation when they came upon another eastbound vehicle being driven by an adult member of the tribe. Also in the second vehicle were the driver’s adult daughter and 12-year-old niece.
Tran was tailgating the vehicle when the other driver motioned for her to pass. At some point in the encounter, the other driver’s adult daughter threw a water bottle at, but did not hit Tran and Do’s vehicle. In response, Do fired several shots out the front passenger window of their vehicle, but did not hit the other driver’s vehicle. After the initial shooting, Tran raised the passenger window and continued to the follow the other vehicle. When Tran had a clear lane to pass, she moved to change lanes.
As Tran began to overtake the other vehicle, Do extended his hand holding a handgun out of their vehicle’s front passenger window. Believing that Do was pointing the gun in her direction, the other driver rapidly applied her brakes. Do fired several additional rounds as Tran drove away.
The other driver called Warm Springs Tribal Police to report the incident while continuing to follow Tran and Do’s vehicle. A patrol officer later stopped their vehicle and ordered Tran and Do out at gunpoint. Both were taken into custody. Officers recovered a Springfield Armory XD .45 caliber handgun in the front-passenger door pocket of the vehicle and a .45 caliber magazine partially loaded with five rounds in the center console.
Do faces a maximum sentence of five years in prison. He will be sentenced on Monday, June 10, 2019 before U.S. District Court Judge Michael H. Simon.
This case was investigated by the FBI and the Warm Springs Tribal Police Department and prosecuted by Paul T. Maloney and Lewis S. Burkhart, Assistant U.S. Attorneys for the District of Oregon.
Local Virginia Business Settles Claim It Violated Servicemember’s RightsRead the Press Release
The Department of Justice and the U.S. Attorney’s office of the Eastern District of Virginia today announced a settlement with Lawn Doctor of Stafford-Culpepper (doing business as Beck I LLC). The settlement resolves claims that the business and its owners violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) by suspending and terminating a U.S. Army Reserve soldier following his return from active duty military service.
“Men and women who serve in the national guard and reserve should never have to worry whether their civilian jobs will be waiting when they return from active duty service to our country,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice is firmly committed to protecting our servicemembers’ employment rights are while they defend our rights.”
“Military reservists make tremendous sacrifices when they are called to active duty,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Such service should never be a detriment to their livelihood. We are committed to ensuring that these men and women are honored, not disadvantaged, for their military service, and will continue to hold employers who violate the rights of our servicemembers accountable.”
The case stems from a servicemember complaint that the U.S. Department of Labor referred to the Department of Justice following an investigation by the DOL’s Veterans’ Employment and Training Service. The complaint concerned a servicemember who was suspended and then terminated from his job as a landscaper because he reported for active duty service with his U.S. Army Reserve unit for the period Oct. 30, 2017, through Nov. 3, 2017. The case was handled by Assistant U.S. Attorney Deirdre G. Brou in collaboration with Andrew Braniff, Assistant Director of the Department of Justice’s Servicemembers and Veterans Initiative.
USERRA protects the rights of members of the uniformed services to retain their civilian employment following absences due to military service obligations, and expressly requires employers to reemploy servicemembers when they return from military service.
Additional information about USERRA can be found on the Justice Department website, the Civil Rights Division website, and the DOL’s website.
The civil claims settled are allegations only. There has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Local Business Settles Claims it Violated Servicemember’s RightsRead the Press Release
ALEXANDRIA, Va. – Lawn Doctor of Stafford-Culpepper, doing business as Beck I, LLC, has agreed to settle claims that the business and its owners violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) by suspending and terminating a U.S. Army Reserve soldier following his return from active duty military service.
“Military reservists make tremendous sacrifices when they are called to active duty,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Such service should never be a detriment to their livelihood. We are committed to ensuring that these men and women are honored, not disadvantaged, for their military service, and will continue to hold employers who violate the rights of our servicemembers accountable.”
The U.S. Attorney’s Office’s involvement in this matter began with a complaint that was referred to the Department of Justice by the Department of Labor concerning a servicemember who worked as a landscaper for Lawn Doctor of Stafford-Culpeper in Fredericksburg. The servicemember alleged that on Oct. 26, 2017, he received orders for active duty service with his U.S. Army Reserve unit from Oct. 30, 2017, through Nov. 3, 2017. The servicemember alleged that he promptly informed his supervisor of his upcoming military duty and was told that failure to appear for work would be considered job abandonment. The servicemember returned to work on Nov. 6, 2017, and was immediately suspended, pending termination. On Nov. 8, 2017, Lawn Doctor of Stafford-Culpeper terminated the servicemember’s employment. The servicemember complained that as a result of the termination due to his military service, the servicemember lost income.
“Men and women who serve in the national guard and reserve should never have to worry whether their civilian jobs will be waiting when they return from active duty service to our country,” said Eric S. Dreiband, Assistant Attorney General of the Civil Rights Division. “The Department of Justice is firmly committed to protecting our servicemembers’ employment rights are while they defend our rights.”
USERRA protects the rights of members of the uniformed services to retain their civilian employment following absences due to military service obligations, and expressly requires employers to reemploy servicemembers when they return from military service.
This case stems from a referral by the U.S. Department of Labor (DOL) following an investigation by the DOL’s Veterans’ Employment and Training Service. The case was handled by Assistant U.S. Attorney Deirdre G. Brou in collaboration with Andrew Braniff, Assistant Director of the Department of Justice’s Servicemembers and Veterans Initiative, who works with DOL to protect the jobs and benefits of National Guard and Reserve servicemembers upon their return to civilian life.
Additional information about USERRA can be found on the Justice Department website and the division website, as well as on the DOL’s website.
The civil claims settled are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Littleton Man Pleads Guilty to Cocaine TraffickingRead the Press Release
CONCORD - Christian Taveras-Polanco, a/k/a Lemuel Cruz Cepeda, 40, of Littleton, pleaded guilty in federal court to possession of cocaine with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on December 6, 2018, law enforcement officers surveilled Taveras-Polanco driving around the Littleton, New Hampshire, area in a gold Hummer registered to Lemuel Cruz Cepeda and stopping at two residences for a brief time. A traffic stop was conducted on the Hummer, and Taveras-Polanco initially identified himself as a citizen of the United States named Lemuel Cruz Cepeda. A consent search of the vehicle revealed 140 grams of cocaine. Taveras-Polanco was arrested and later admitted that he is a citizen of the Dominican Republic named Christian Taveras-Polanco, not a United States citizen named Lemuel Cruz Cepeda. Officers obtained a search warrant for Taveras-Polanco’s residence and located 302 additional grams of cocaine there.
Taveras-Polanco is scheduled to be sentenced on June 25, 2019.
“Drug trafficking causes untold damage to communities throughout New Hampshire,” said U.S. Attorney Murray. It is of vital importance that we push back aggressively against the sale of these deadly substances. We are fully committed to working with our law enforcement partners throughout the state to identify and prosecute those who are involved in distributing cocaine and other dangerous drugs.”
“We’re thankful for the successful prosecution of this individual, which should be seen as a sign of the seriousness with which federal law enforcement takes the threat posed by criminal illegal aliens who prey on U.S. citizens and the communities they hide within,“ said Peter C. Fitzhugh, Special Agent In Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
This matter was investigated by Homeland Security Investigations and the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Jarad Hodes.
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Las Vegas Real Estate Broker Convicted of Tax FraudRead the Press Release
A real estate broker, who failed to file federal income tax returns for nearly 20 years and attempted to evade more than half a million dollars in income taxes, was convicted today by a jury in Las Vegas, Nevada, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
William Waller Jr. was convicted of one count of attempting to evade the payment of federal income taxes of more than $500,000 for the years 2004-2009 and two counts of failing to file his 2011 and 2012 income tax returns.
According to the evidence presented at trial, Waller, after filing his tax return for 1998 reporting zero income, failed to file federal individual income tax returns for almost two decades. He concealed his real estate income from the Internal Revenue Service (IRS) with various methods, including using bank accounts in the name of a business to receive his commissions and pay his personal expenses, drawing substantial amounts of cash from those accounts, and borrowing against a piece of real property he owned to eliminate his equity in the property. For example, despite earning income of more than $400,000 in 2011 and $170,000 in 2012, Waller filed no tax returns in those years.
Waller faces a maximum sentence of five years in prison for the tax evasion count and one year in prison on each failure to file a tax return count as well as a period of supervised release, monetary penalties and restitution.
U.S. District Judge James C. Mahan scheduled Waller’s sentencing for June 21.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS-Criminal Investigation, who investigated the case, and United States Department of Justice Trial Attorneys Christopher Magnani and Michael Landman, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website at www.justice.gov/tax.
Las Vegas Real Estate Broker Convicted of Tax FraudRead the Press Release
LAS VEGAS, Nev. – A real estate broker, who failed to file federal income tax returns for nearly 20 years and attempted to evade more than half a million dollars in income taxes, was convicted today by a jury in Las Vegas, Nevada, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
William Waller Jr. was convicted of one count of attempting to evade the payment of federal income taxes of more than $500,000 for the years 2004-2009 and two counts of failing to file his 2011 and 2012 income tax returns.
According to the evidence presented at trial, Waller, after filing his tax return for 1998 reporting zero income, failed to file federal individual income tax returns for almost two decades. He concealed his real estate income from the Internal Revenue Service (IRS) with various methods, including using bank accounts in the name of a business to receive his commissions and pay his personal expenses, drawing substantial amounts of cash from those accounts, and borrowing against a piece of real property he owned to eliminate his equity in the property. For example, despite earning income of more than $400,000 in 2011 and $170,000 in 2012, Waller filed no tax returns in those years.
Waller faces a maximum sentence of five years in prison for the tax evasion count and one year in prison on each failure to file a tax return count as well as a period of supervised release, monetary penalties and restitution.
U.S. District Judge James C. Mahan scheduled Waller’s sentencing for June 21, 2019.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS-Criminal Investigation, who investigated the case, and United States Department of Justice Trial Attorneys Christopher Magnani and Michael Landman, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website at www.justice.gov/tax.
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Justice Department Files Statement of Interest Supporting Native American Religious Land Use CaseRead the Press Release
The Department of Justice today filed a Statement of Interest in U.S. District Court in New Jersey supporting a lawsuit by the Ramapough Mountain Indians (Ramapough) that the Township of Mahwah (Township) violated the tribe’s rights under the Religious Land Use and Institutionalized Person’s Act of 2000 (RLUIPA) by interfering with religious assembly on property the tribe owns in the Township.
“RLUIPA is an important law protecting the religious exercise of people of all faiths. The Department of Justice is committed to ensuring that this law and other laws protecting religious freedom are fully and properly applied,” said Assistant Attorney General Eric Dreiband for the Civil Right Division.
RLUIPA protects the rights of all religious communities to worship on their land free from discriminatory barriers and unlawful burdens,” New Jersey U.S. Attorney Craig Carpenito said. “Our office will continue to vigorously enforce the rights guaranteed by RLUIPA and take steps to ensure that it is applied correctly in our District.”
In the suit, Ramapough Mountain Indians, Inc. v. Township of Mahwah, filed last May, the Ramapough allege that the Township substantially burdened their religious exercise by rescinding a zoning permit that authorized religious worship, limiting the number of people permitted on the property for religious gatherings, demanding the removal of structures central to the Ramapough’s worship including a sweat lodge, a prayer circle, and an altar, issuing large fines, and initiating civil and criminal enforcement proceedings. The tribe also alleges that the Township treated it differently from other similarly situated nonreligious groups.
In September 2018, the Ramapough sought to amend their complaint. The United States’ Statement of Interest argues that the amended complaint properly state claims under RLUIPA. The United States argues that the Township has imposed a substantial burden on the Rampough’s religious exercise without adequate justification, and has not treated its use of the land equally with nonreligious uses of land. The Statement of Interest further argues that those RLUIPA claims, which allege that the Township’s conduct has “significantly chilled Ramapough’s use of the land for religious purposes,” are ripe for consideration by the court.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. Last year, the Justice Department announced its Place to Worship Initiative, which focusses on RLUIPA’s provisions that protect the rights of religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 or the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or on the complaint portal on the Place to Worship Initiative website.
Justice Department Files Statement of Interest in Religious Land Use Case Brought by Native American GroupRead the Press Release
NEWARK, N.J. – The Department of Justice today filed a Statement of Interest in U.S. District Court in New Jersey supporting claims by the Ramapough Mountain Indians (Ramapough) that the Township of Mahwah, New Jersey, violated the tribe’s rights under the Religious Land Use and Institutionalized Person’s Act of 2000 (RLUIPA) by interfering with religious assembly on tribal property known as “Sweet Water.”
“RLUIPA protects the rights of all religious communities to worship on their land free from discriminatory barriers and unlawful burdens,” New Jersey U.S. Attorney Craig Carpenito said. “Our office will continue to vigorously enforce the rights guaranteed by RLUIPA and take steps to ensure that it is applied correctly in our District.”
“RLUIPA is an important law protecting the religious exercise of people of all faiths. The Department of Justice is committed to ensuring that this law and other laws protecting religious freedom are fully and properly applied,” Eric Dreiband, Assistant Attorney General for Civil Rights, said.
In the suit, Ramapough Mountain Indians, Inc. v. Township of Mahwah, filed last May, the Ramapough allege that the Township substantially burdened their religious exercise by rescinding a zoning permit that authorized religious worship, limiting the number of people permitted on the property for religious gatherings, demanding the removal of structures central to the Ramapough’s worship including a sweat lodge, a prayer circle, and an altar, issuing large fines, and initiating civil and criminal enforcement proceedings. The tribe also alleges that the Township treated it differently from other similarly situated nonreligious groups.
In September 2018, the Ramapough sought to amend their complaint. The United States’ Statement of Interest argues that the amended complaint properly state claims under RLUIPA. The United States argues that the Township has imposed a substantial burden on the Rampough’s religious exercise without adequate justification, and has not treated its use of the land equally with nonreligious uses of land. The Statement of Interest further argues that those RLUIPA claims, which allege that the Township’s conduct has “significantly chilled Ramapough’s use of the land for religious purposes,” are ripe for consideration by the court.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. Last year, the Justice Department announced its “Place to Worship Initiative,” which focusses on RLUIPA’s provisions that protect the rights of religious institutions to worship on their land. More information is available at: www.justice.gov/crt/placetoworship.In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 or the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or on the complaint portal on the Place to Worship Initiative website.
The government is represented by Assistant U.S. Attorney Michael Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Unit, Assistant U.S. Attorney Susan Millenky, Civil Division; and Trial Attorney Noah Sacks, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.
Justice Department Awards over $300,000 to the Southern Ute Indian Tribe to Support Native American Crime VictimsRead the Press Release
DENVER – The Office of Justice Programs’ Office for Victims of Crime (OVC) today awarded over $391,425 to the Southern Ute Indian Tribe as part of a larger effort to assist victims of crime, announced U.S. Attorney Jason Dunn. The Southern Ute grant is part of more than $5.7 million to support crime victims in Native American communities nationwide. This set of awards is the second in a series of grants being made by OVC to American Indian and Alaska Native communities. OVC has now awarded more than $9 million of a planned $100 million to support tribal victim service programs.
The Southern Ute Indian Tribe received $391,425 to expand its victim services program by providing direct victim services and trauma-informed personnel support. The funding will pay for supplies, staff training, the purchase of new equipment for forensic medical services and child forensic interviews and clinical therapeutic services for crime victims.
“I recently travelled to the Southern Ute Indian Reservation and saw firsthand how much they’ve accomplished in helping victims of crime,” said U.S. Attorney Jason Dunn. “I also know that a grant, like this one, can provide a huge benefit to crime prevention and victim protection.”
“American Indian and Alaska Native communities face extensive public safety challenges, but through creative approaches that combine traditional methods with innovative solutions, they are demonstrating their determination to meet the needs of victims in their communities,” said Principal Deputy Assistant Attorney General Matt M. Dummermuth. “These grants, part of historic levels of funding awarded by the Department of Justice to American Indian and Alaska Native communities, will provide significant resources to bring critical services to those who suffer the effects of crime and violence.”
The Justice Department is working to improve the lives of all crime victims, including American Indian and Alaska Native communities, by providing accessible resources and services. These awards—and those to come—represent the most significant victim services funding ever dispersed to American Indian and Alaska Native communities.
According to the Bureau of Justice Statistics, American Indians and Alaska Natives experience violent crimes at rates far greater than the general population.
“American Indian and Alaska Native crime victims continue to face challenges in identifying vital services and resources needed to help survivors address their trauma and navigate a complex system,” said OVC Director Darlene Hutchinson. “The Justice Department has made it a priority to partner with tribes to help victims and their families rebuild their lives in the aftermath of violence.”
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership to improve the nation’s capacity to prevent and reduce crime, assist victims, and enhance the rule of law by strengthening the criminal justice system. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at www.ojp.gov.
Jury Convicts Michigan Man for Trafficking Cocaine, Heroin from California to MidwestRead the Press Release
ROCK ISLAND, Ill. – Following trial last week, a jury deliberated for two hours before returning guilty verdicts on all counts against Omar Gutierrez-Valle, 30, of Michigan, for his role in a conspiracy to traffic heroin and cocaine. Chief U.S. District Judge Sara Darrow presided over the trial which began on March 11. The jury returned its guilty verdicts on March 14.
Over four days of testimony, the government presented evidence that Gutierrez-Valle was involved in a Mexico and California-based conspiracy to transport cocaine and heroin across the Mexican border into California and thereafter to the Midwest and elsewhere:
In January and February 2017, Gutierrez-Valle worked with an unnamed California coordinator to move a shipment of 10 kilograms of cocaine and one kilogram of heroin to the Midwest. The California coordinator had paid to illegally smuggle a Mexican national into the United States. To pay off his debt relative to being smuggled into the U.S., the coordinator told him that he was to help Gutierrez-Valle meet a courier in the Chicago area to receive a shipment of drugs. The coordinator brought the Mexican national from Los Angeles to Chicago via Amtrak and the coordinator returned to California, where he provided an over the road truck driver with the load of drugs.
On the day of the expected meeting and delivery, Feb. 26, 2017, the Illinois State Police stopped the truck driver in Henry County, Ill., for a motor vehicle safety inspection. The trooper discovered the 10 kilograms of cocaine and one kilogram of heroin in the truck. Police then arranged for the truck to proceed to the agreed delivery location, a truck stop off I-80 near LaSalle, Ill., where Gutierrez-Valle met the truck to receive the drugs.
Judge Darrow scheduled sentencing for Gutierrez-Valle on July 11, 2019. Gutierrez-Valle remains in the custody of the U.S. Marshals Service since his arrest in May 2018.
At sentencing, Gutierrez-Valle faces a mandatory minimum sentence of 10 years to life for conspiracy to distribute and possess with intent to distribute at least five kilograms of cocaine and at least one kilogram of heroin.
The U.S. Drug Enforcement Administration, Illinois State Police, Black Hawk Area Task Force, and Quad Cities Metropolitan Enforcement Group investigated the charges. Assistant U.S. Attorneys Don Allegro and Alyssa Raya are prosecuting the case.
Judge Sentences Pittsburgh Felon to 15 Years in Federal Prison for Illegally Possessing a Stolen PistolRead the Press Release
PITTSBURGH – Steven White was sentenced to 180 months in federal prison for possessing a firearm after several prior felony convictions, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on White, age 29. White was also sentenced to serve four years of supervised release following his prison sentence. In support of the sentence, the Court was informed that White unlawfully possessed a stolen pistol on June 15, 2016, while on state parole following five felony convictions and five prison sentences for drug trafficking and gun crimes. White was on parole at the time from a prior 3-6 year state prison sentence for heroin trafficking.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Bureau of Police and the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the conviction and sentence in this case. This case was prosecuted as 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.
Huntington Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Jeremy Midkiff, 38, entered a guilty plea to an indictment charging him with distribution of fentanyl.
“Fentanyl equals death,” said United States Attorney Mike Stuart. “We prosecute every case involving fentanyl through Operation Synthetic Opioid Surge (S.O.S). The fentanyl crisis represents an extraordinary public health crisis. Fifty times more powerful than heroin – FIFTY TIMES – and so powerful that just a few flecks the size of grains of salt can cause rapid death. Victims, from the famous like Prince and Tom Petty to the anonymous person we don’t know, are needlessly piling up.”
Midkiff admitted that on May 2, 2017, he met a confidential informant in Huntington and gave the informant fentanyl in exchange for $70.
Midkiff faces up to twenty years in federal prison when he is sentenced on June 24, 2019.
The Huntington Police Department conducted the investigation. The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
This case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), a focused enforcement effort that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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Hayward Man Convicted of Forced Labor and Harboring Illegal AliensRead the Press Release
On December 18, 2020, United States Attorney David L. Anderson issued the following statement:
On Friday, December 18, 2020, we moved to vacate the judgment and dismiss the superseding indictment against Job Torres Hernandez. In this case, a jury concluded Mr. Torres Hernandez was guilty of multiple crimes, and the district court entered a criminal judgment against Mr. Torres Hernandez based upon that verdict. During the pendency of Mr. Torres Hernandez’s appeal to the Ninth Circuit Court of Appeals, we learned of circumstances leading us to the firm conclusion that at this point only a dismissal would meet the interests of justice. It is a serious step for the United States to dismiss criminal charges. Likewise, it is the solemn duty of the United States to seek justice in all its cases, and to evaluate the appropriateness of its charges throughout the course of the proceedings.
OAKLAND - A federal jury convicted Job Torres Hernandez of charges that he obtained forced labor from victims and harbored illegal aliens for commercial advantage or private financial gain, announced United States Attorney David L. Anderson and Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent-in-Charge Ryan L. Spradlin. The conviction follows a ten day trial before the Honorable Jeffrey S. White, U.S. District Judge.
The evidence at trial demonstrated that since at least May 2015, Torres, 38, of Hayward, Calif., owned construction companies in Northern California at which he employed workers to whom he paid little to nothing for their labor. Torres recruited workers from Mexico to work for his construction companies and then refused to pay them the wages they had earned. Further, Torres knew the workers had come to, entered, and remained in the United States in violation of the law; he kept the workers in squalid conditions and shielded them from detection while making them work as long as 24 consecutive hours at a time. Many victims testified at trial, with the assistance of an interpreter, about how Torres treated them. Witnesses testified that Torres paid them far less than what he had promised to pay them, and when they complained, Torres threatened them or their family members. Specifically, the evidence demonstrated Torres warned his victims that if they reported him, then he would harm them physically, have associates in Mexico harm their family, and have them deported. The evidence also demonstrated that Torres told his victims that if they went to police or filed suit against him, no one would believe them. In addition, Torres housed dozens of workers on makeshift beds in a commercial warehouse in Hayward, Calif., and other properties including a garage in Hayward. The workers had limited access to toilets and showers, and at times, the properties were locked, preventing the workers from leaving. Torres harbored these individuals for the purpose of obtaining an advantage in the construction industry and for his private financial gain.
On December 6, 2018, a federal grand jury handed down a superseding indictment, charging Torres with one count of harboring illegal aliens for commercial advantage or private financial gain, in violation of 8 U.S.C. §§ 1324(a)(1)(A)(iii) and (B)(i), and one count of forced labor, in violation of 18 U.S.C. § 1589(a). The jury convicted Torres of both counts.
Judge White ordered the U.S. Marshals Service to take Torres into custody immediately, pending sentencing. Judge White scheduled Torres’s sentencing hearing for June 25, 2019. Torres now faces a maximum statutory penalty of 10 years in prison, and a fine of $250,000, for harboring illegal aliens, and 20 years in prison, and a fine of $250,000, for the forced labor violation. In addition, the court may order Torres to serve an additional term of supervised release and to pay forfeiture and restitution, if appropriate. However, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Ravi T. Narayan and Jonathan U. Lee are prosecuting the case with the assistance of Vanessa Quant, Jessica Rodriguez Gonzalez, and Kimberly Richardson. The prosecution is the result of an investigation by the Department of Homeland Security’s Human Trafficking Unit; Department of Labor’s Wage and Hour Division; and the San Francisco Police Department’s Special Victims Unit.
Gulfport Man Charged with Drug Trafficking OffenseRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that HECTOR EFRAIN LOBOS-CERNA, age 42, of Gulfport, Mississippi, was indicted Thursday, March 14, 2019 by a federal grand jury on one count of possessing with intent to distribute 500 grams or more of cocaine, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(B).
If convicted, LOBOS-CERNA faces a terms of imprisonment of 5-40 years, a fine of up to $5 million, and at least four years of supervised release following any term of imprisonment.
U.S. Attorney Strasser reiterated that the indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the Drug Enforcement Administration, United States Border Patrol, and the Kenner Police Department. Assistant United States Attorney Jeffrey Sandman is in charge of the prosecution.
Greenwich Man Pleads Guilty to Federal Charges Related to Investment Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LEONID POLLAK, also known as “Lenny,” 58, of Greenwich, pleaded guilty today in New Haven federal court to offenses related to an investment fraud scheme.
According to court documents and statements made in court, Pollak owned a Norwalk-based company that organized trade shows and expositions throughout the U.S. In mid-2013, Pollak induced an acquaintance to invest money in a new business venture that was supposed to organize similar expositions in Ukraine. Instead of using the money to build the new business, Pollak spent as much as $250,000 on unrelated business and personal expenses, including his home mortgage loan, groceries and clothing, automobiles, and private school tuition.
Pollak pleaded guilty to one count of wire fraud, an offense that carries a maximum term of imprisonment of 20 years, and one count of illegal monetary transaction, an offense that carries a maximum term of imprisonment of 10 years. He is scheduled to be sentenced by U.S. District Judge Janet C. Hall on June 10, 2019.
Pollak was arrested on September 20, 2018. He is released on a $200,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, with the assistance of the U.S. Secret Service and Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorneys Christopher W. Schmeisser and Pilar Gonzalez.
Fort Myers Man Sentenced to Six Years for Distributing Child PornographyRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele today sentenced Kenneth Christian Javi Garcia (24, Fort Myers) to six years in federal prison for distribution of child pornography. The court also ordered Javi Garcia to forfeit his computer, which was used to commit the offense.
Javi Garcia pleaded guilty on September 28, 2018.
According to court documents, between August 30, 2017, and September 20, 2017, the FBI was able to directly connect to Javi Garcia’s computer and download approximately 200 files containing depictions of child pornography. On November 14, 2017, a search warrant was executed at Javi Garcia’s residence, where his computer was located and seized. A subsequent forensic analysis of the computer revealed approximately 450 videos of child pornography, with created file dates ranging from February 2016 through October 2017.
This case was investigated by the Federal Bureau of Investigation’s Innocent Images Task Force, which includes law enforcement from the Charlotte County Sheriff’s Office, the Lee County Sheriff’s Office, the Sarasota Police Department, and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Stockton Couple Convicted of Human Trafficking Charges Related to Forced Labor of Foreign NationalsRead the Press Release
SACRAMENTO, Calif. — After an 11-day trial, a federal jury found Satish Kartan, 45, and his wife, Sharmistha Barai, 40, guilty on March 14 of conspiracy to obtain forced labor and two counts of obtaining forced labor. In addition, Kartan was found guilty of fraud in foreign labor contracting. Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, U.S. Attorney McGregor W. Scott, Matthew Perlman, Special Agent in Charge of the of the Diplomatic Security Service San Francisco Field Office, Sean Ragan, Special Agent in Charge of the Sacramento FBI Field Office, and Ryan L. Spradlin, the Special Agent in Charge for Homeland Security Investigations in Northern California made the announcement.
“Human trafficking is a disgraceful and unacceptable crime. The defendants in this case took advantage of overseas workers, forcing them to work without pay, physically abusing them, and threatening negative repercussions if they tried to leave,” said Assistant Attorney General Eric Dreiband. "The Justice Department will continue to investigate and vigorously prosecute human traffickers in order to bring justice to victims.”
“These defendants exploited one victim after another, using them to labor in their home, failing to pay wages and depriving them of basic human rights,” said U.S. Attorney Scott. “The U.S. Attorney’s Office continues its commitment to protect and defend vulnerable members of our society from human trafficking.”
“The Diplomatic Security Service will continue to pursue those who abuse domestic worker visas to manipulate and exploit their employees for personal gain," said Matthew Perlman, Special Agent in Charge of the of the Diplomatic Security Service San Francisco Field Office. "DSS’s strong relationship with our law enforcement partners and the U.S. Attorney’s Office for the Eastern District of California continues to be essential in the pursuit of justice.”
“Kartan and Barai did not simply fail to pay victims for their work,” said Sean Ragan, Special Agent in Charge of the Sacramento FBI Field Office. “They deprived them of their dignity and robbed them of their federally protected civil rights. The FBI will work with partner agencies to protect victims of human trafficking wherever that crime occurs.”
“Millions of people worldwide are affected by this type of forced labor and human trafficking,” said Ryan L. Spradlin, the Special Agent in Charge for Homeland Security Investigations in Northern California. “This case is a testament of the dedication of HSI and our law enforcement partners. We are committed to working together to eradicate these deplorable crimes from our community.”
According to court documents and evidence presented at trial, between February 2014 and October 2016, Kartan and Barai hired workers from overseas to perform domestic labor in their home in Stockton. In advertisements seeking workers on the internet and India-based newspapers, the defendants made false claims regarding the wages and the duties of employment. Then, once the workers arrived at the defendants’ Stockton residence, Kartan and Barai forced them to work 18 hours a day with limited rest and nourishment. Few of them were paid any wage. The defendants kept their domestic workers from leaving and induced them to keep working for them by threatening them, by creating an atmosphere of fear, control, and disempowerment, and at times by physically hitting or burning them. When a victim pushed back or said she wanted to leave, it got worse.
Victims flew from India and Nepal to testify. According to evidence presented at trial, the defendants struck one worker on multiple occasions. Barai threatened to kill her and throw her bones in the garbage, backhanded her across the face for talking back, and slammed her hands down on a gas stove, causing her to suffer first and second degree burns on her hands from the flames. The defendants also threatened several other victims to coerce them to keep working, including by telling the victims they would report them to police or immigration authorities if they tried to leave. Throughout the victims’ time in the defendants’ home, they were deprived of sleep and food. The defendants subjected the victims to verbal abuse and harassment in an effort to intimidate them into continuing to provide labor and services.
Kartan and Barai are scheduled to be sentenced on June 6. Each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by Homeland Security Investigations (HSI), the FBI, and the State Department’s Diplomatic Security Service. The Stockton Police Department provided the initial investigation and later assistance with victim services. Assistant U.S. Attorneys Jason Hitt and Katherine Lydon are prosecuting the case with the assistance of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Eastern District of California (Sacramento) is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Former Stockton Couple Convicted of Human Trafficking Charges Related to Forced Labor of Foreign NationalsRead the Press Release
After an 11-day trial, a federal jury found Satish Kartan, 45, and his wife, Sharmistha Barai, 40, guilty on March 14 of conspiracy to obtain forced labor and two counts of obtaining forced labor. In addition, Kartan was found guilty of fraud in foreign labor contracting. Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, U.S. Attorney McGregor W. Scott, Matthew Perlman, Special Agent in Charge of the of the Diplomatic Security Service San Francisco Field Office, Sean Ragan, Special Agent in Charge of the Sacramento FBI Field Office, and Ryan L. Spradlin, the Special Agent in Charge for Homeland Security Investigations in Northern California made the announcement.
“Human trafficking is a disgraceful and unacceptable crime. The defendants in this case took advantage of overseas workers, forcing them to work without pay, physically abusing them, and threatening negative repercussions if they tried to leave,” said Assistant Attorney General Eric Dreiband. “The Justice Department will continue to investigate and vigorously prosecute human traffickers in order to bring justice to victims.”
“These defendants exploited one victim after another, using them to labor in their home, failing to pay wages and depriving them of basic human rights,” said U.S. Attorney Scott. “The U.S. Attorney’s Office continues its commitment to protect and defend vulnerable members of our society from human trafficking.”
“The Diplomatic Security Service will continue to pursue those who abuse domestic worker visas to manipulate and exploit their employees for personal gain," said Matthew Perlman, Special Agent in Charge of the of the Diplomatic Security Service San Francisco Field Office. "DSS’s strong relationship with our law enforcement partners and the U.S. Attorney’s Office for the Eastern District of California continues to be essential in the pursuit of justice.”
“Kartan and Barai did not simply fail to pay victims for their work,” said Sean Ragan, Special Agent in Charge of the Sacramento FBI Field Office. “They deprived them of their dignity and robbed them of their federally-protected civil rights. The FBI will work with partner agencies to protect victims of human trafficking wherever that crime occurs.”
“Millions of people world-wide are affected by this type of forced labor and human trafficking,” said Ryan L. Spradlin, the Special Agent in Charge for Homeland Security Investigations in Northern California. “This case is a testament of the dedication of HSI and our law enforcement partners. We are committed to working together to eradicate these deplorable crimes from our community.”
According to court documents and evidence presented at trial, between February 2014 and October 2016, Kartan and Barai hired workers from overseas to perform domestic labor in their home in Stockton. In advertisements seeking workers on the internet and India-based newspapers, the defendants made false claims regarding the wages and the duties of employment. Then, once the workers arrived at the defendants’ Stockton residence, Kartan and Barai forced them to work 18 hours a day with limited rest and nourishment. Few of them were paid any wage. The defendants kept their domestic workers from leaving, and induced them to keep working for them, by threatening them, by creating an atmosphere of fear, control, and disempowerment, and at times by physically hitting or burning them. When a victim pushed back or said she wanted to leave, it got worse.
Victims flew from India and Nepal to testify. According to evidence presented at trial, the defendants struck one worker on multiple occasions. Barai threatened to kill her and throw her bones in the garbage, backhanded her across the face for talking back, and slammed her hands down on a gas stove, causing her to suffer first and second degree burns on her hands from the flames. The defendants also threatened several other victims to coerce them to keep working, including by telling the victims they would report them to police or immigration authorities if they tried to leave. Throughout the victims’ time in the defendants’ home, they were deprived of sleep and food. The defendants subjected the victims to verbal abuse and harassment in an effort to intimidate them into continuing to provide labor and services.
Kartan and Barai are scheduled to be sentenced on June 6. Each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by Homeland Security Investigations (HSI), the FBI, and the State Department’s Diplomatic Security Service. The Stockton Police Department provided valuable initial investigation and later assistance with victim services. Assistant U.S. Attorneys Jason Hitt and Katherine Lydon are prosecuting the case with the assistance of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Eastern District of California (Sacramento) is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Former Allegheny County Sheriff’s Office Employee Sentenced for Obstruction of JusticeRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, was sentenced in federal court for obstruction of justice, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab sentenced Erika Romanowski, 41, to serve one day in prison, followed by six months (180 days) of home detention and three years of supervised release. Romanowski was also ordered to complete 100 hours of community service.
In connection with her prior guilty plea, entered on November 14, 2018, Romanowski admitted that while employed as a clerk with the Allegheny County Sheriff’s Office (ACSO), she had access to sensitive law enforcement information, including information related to ongoing federal investigations with which ACSO assisted. Romanowski further admitted that, between in and around February 2018 and in and around April 2018, she disclosed non-public, sensitive law enforcement information to two personal associates, Jewell Hall and Joelle Hollis, in an effort to protect Hall from investigation and prosecution by federal authorities. The court was further advised that Hall and Hollis were targets of an ongoing federal grand jury investigation focused on the criminal activities of a drug trafficking organization—the Greenway Boy Killas (GBK)—which operated in the West End neighborhood of Pittsburgh. Romanowski further admitted that during the course of an interview with Special Agents of the Federal Bureau of Investigation on June 20, 2018, she repeatedly lied about having disclosed non-public, sensitive law enforcement information to Hall and Hollis.
On June 12, 2018, Hall, Hollis, and 14 other defendants were charged in a four-count indictment, alleging various serious drug offenses. That case currently is pending before Judge Schwab.
Assistant United States Attorney Eric G. Olshan prosecuted this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Romanowski, with assistance from the Allegheny County Sheriff’s Office.
Felon Pleads Guilty to Federal Charges of Unlicensed Dealing in Firearms and Illegal Possession of Firearms and AmmunitionRead the Press Release
Baltimore, Maryland – Terrel Edward Elliott, Jr., age 24, of Baltimore, Maryland, pleaded guilty late on March 15, 2019, to unlicensed dealing in firearms and to being a felon in possession of firearms and ammunition. According to his plea agreement, Elliott was dealing in firearms less than two months after his release from prison and on a first-degree assault conviction in the Circuit Court of Maryland for Howard County.
The indictment 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; and Commissioner Michael Harrison of the Baltimore Police Department.
“Gun violence in our communities is fueled by those possessing and selling firearms illegally,” said U.S. Attorney Robert K. Hur. “Through his actions, Terrel Elliott contributed to this alarming problem of gun violence by putting firearms in the hands of people intent on violence.”
According to his plea agreement, Elliott was convicted of first-degree assault in Howard County and was sentenced to eight years in prison, with six years and a half years suspended sentence and one year six months unsupervised probation. Elliott was also given a supervised probation period of five years. Elliott was released after serving his sentence on September 24, 2016.
Elliott was arrested on April 14, 2017 in possession of drugs, 14 .22-caliber bullets and a handgun with an obliterated serial number. On November 13, 2017, Elliott pleaded guilty in Howard County to possession of a firearm by a convicted felon. On February 12, 2018, Baltimore Police officers were surveilling Elliott, who had an open warrant for his arrest, when they saw him leave his residence and get into a car with a women. Officers performed a traffic stop to execute the arrest warrant, but Elliott ran away. Officers gave chase and Elliott was captured at the back door of his residence and arrested. Officers recovered a handgun from the path Elliott took.
During the ensuing investigation, law enforcement obtained a search warrant for Elliott’s Instagram account. Law enforcement recovered multiple photographs of Elliott in possession of numerous firearms, as well as Instagram messages with prospective firearm customers. One of the earliest photos posted on Elliot’s Instagram account was of Elliott with a gun was on November 8, 2016—less than two months after he was released from prison. In January 2018 Elliott sold a gun to a minor and later messages reflect the discussion of more gun sales to the minor. Elliott’s Instagram is over 4,700 pages and contains numerous references to selling guns for profit. Elliott admitted that between eight and 24 firearms were involved in his offenses, and that he knew, or had reason to believe that the guns would be used or possessed in connection with other felonies, including robberies and drug trafficking.
Elliott faces a maximum of five years in prison for unlicensed dealing in firearms and a maximum of 10 years in prison for being a felon in possession of firearms and ammunition. U.S. District Judge Richard D. Bennett has scheduled sentencing for June 18, 2019 at 3:00 p.m.
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 and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Sandra Wilkinson and Michael Goldsticker, who are prosecuting the case.
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Federal Employee Pleads Guilty to Child Pornography OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SCOTT PIERSON, 58, of Vernon, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of receipt of child pornography.
According to court documents and statements made in court, in March 2018, the U.S. Department of Transportation – Office of Inspector General received information that Pierson, an Administrative Officer assigned to the Federal Aviation Administration (“FAA”) Bradley Flight Standards District Office in Enfield, was using his FAA-issued laptop computer to access websites known to contain images of child pornography.
On July 19, 2018, investigators conducted a court-authorized search of Pierson’s residence and seized computers and electronic storage devices, including his FAA-issued laptop computer. Forensic examination of the seized items revealed more than 1,500 images and videos of children, including children younger than 12 years old, engaged in sexually explicit conduct.
Pierson has been detained since his arrest on July 19, 2018.
The charge carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years. A sentencing date has not been scheduled.
This matter is being investigated by the U.S. Department of Transportation – Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Lauren C. Clark.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Fairfield County Doctor Sentenced to 87 Months for Health Care Fraud and Money Laundering OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that Dr. RAMIL MANSOUROV, 49, of Darien, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 87 months of imprisonment, followed by three years of supervised release, for health care fraud and money laundering offenses.
According to court documents and statements made in court, Mansourov is a physician who operated out of Family Health Urgent Care, located at 235 Main Street in Norwalk. The medical practice was formerly known as Immediate Health Care, which was owned by Dr. Bharat Patel. In approximately 2012, Mansourov purchased the practice from Patel and renamed it Family Urgent Health Care, and Patel continued to work at the practice.
Between 2014 and November 2016, Mansourov billed Medicaid nearly $5 million for home, office and nursing home visits that never occurred. The investigation revealed that Mansourov used the stolen funds for both personal and business purposes, and that he transferred some of the stolen funds to a bank account in Switzerland.
Judge Arterton ordered Mansourov to pay $4,994,027 in restitution, forfeit $50,000 and surrender his federal controlled substances registration to the Drug Enforcement Administration.
Mansourov has been detained since July 13, 2017, when he was apprehended after fleeing to Canada. On September 17, 2018, he pleaded guilty to one count health care fraud and one count of money laundering.
On June 25, 2018, Patel pleaded guilty to narcotics distribution and health care fraud offenses. Patel admitted that he wrote hundreds of medically unnecessary prescriptions for oxycodone and hydrocodone, and received $158,523.95 from federal health programs as a result of this and related criminal conduct. On October 12, 2018, he was sentenced to 54 months of imprisonment.
This investigation was conducted by the DEA’s New Haven Tactical Diversion Squad and the Norwalk Police Department, with the critical assistance of the Connecticut Office of the Attorney General. The DEA Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments.
The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Detroit Man Sentenced for Distributing FentanylRead the Press Release
HUNTINGTON, W.Va. -- A Detroit, Michigan man was sentenced to 15 months in prison today for distributing fentanyl, announced United States Attorney Mike Stuart. Octavius Ellis, 23, previously pled guilty in December 2018 to knowingly and intentionally distributing fentanyl. The Huntington Police Department handled the investigation.
“Another Detroit drug thug going to federal prison by way of the Detroit to Huntington express,” said United States Attorney Mike Stuart. “The message to Detroit and the Detroit poison peddlers – there’s plenty of room at the “inn” if you bring your poisons to West Virginia.”
On January 19, 2018, officers with the Huntington Police Department utilized a confidential informant to arrange a controlled buy of heroin from Ellis. Ellis arrived at the buy location in the West End of Huntington and provided the confidential informant with a substance he represented to be heroin in exchange for $70. Testing by the West Virginia State Police Lab confirmed the substance to actually be fentanyl.
United States District Court Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Monica D. Coleman handled the prosecution.
This case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas
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###Detroit Man Pleads Guilty to Role in Federal Heroin ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who helped sell heroin in Huntington between 2014 and 2016 pled guilty yesterday to a federal drug charge, announced United States Attorney Mike Stuart. Charles Deshawn Lockhart, 27, entered a guilty plea to conspiracy to distribute 100 grams or more of heroin in federal court in Huntington. Stuart commended the investigative efforts of the FBI Drug Task Force and the Huntington Police Department.
“Detroit has one of the biggest drug problems in the country and, sadly, that problem is being exported to places like Huntington, West Virginia,” said United States Attorney Mike Stuart. “This is another case of Detroit’s problems finding their way to the streets of West Virginia. My words and my record could not be more clear – I’ll do everything in my power to lock up every Detroit poison peddler and drug thug that brings his junk into my district.”
Between November of 2014 and May of 2016, Lockhart admitted he conspired with multiple individuals to distribute heroin in the Huntington area. During the conspiracy, Lockhart received quantities of heroin on consignment which he distributed to various customers. Lockhart would then collect payment for the heroin and return it to other co-conspirators. As part of his plea, Lockhart further admitted that he distributed heroin to a confidential informant in October of 2015.
Lockhart faces up to 40 years in federal prison when he is sentenced on June 24, 2019.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
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Delaware Man Pleads Guilty to Crystal Meth TraffickingRead the Press Release
WILMINGTON, Del. – Paul Barrett, age 41, of New Castle, Delaware, pled guilty on March 15, 2019 to possessing with intent to distribute methamphetamine, David C. Weiss, United States Attorney for the District of Delaware, announced.
According to court documents and statements made in open court, federal law enforcement began surveilling Defendant after receiving a tip that he was engaged in narcotics trafficking. Surveillance of the defendant led law enforcement to a storage unit in New Castle, Delaware. A drug sniffing dog confirmed the presence of narcotics.
Law enforcement followed Barrett as he picked up a drug package in a shopping center parking lot and returned to the storage unit. A subsequent search of Defendant’s car and storage unit yielded over two kilograms of methamphetamine.
U.S. Attorney Weiss stated, “The resurgence of methamphetamine across the country has now reached Delaware, resulting in one of our largest seizures to date. Thanks to the cooperative investigation between the FBI, DEA and HSI, these drugs were seized before reaching our streets. Federal authorities remain vigilant and will do whatever is necessary to protect our community.”
"The FBI in Wilmington worked side-by-side with the DEA, the Delaware State Police and other federal, state and local partners to ensure we stopped Mr. Barrett from further distributing methamphetamine in the region," said FBI Baltimore Acting Special Agent in Charge Jennifer L. Moore. "These dangerous drugs have a devastating effect on our communities and we will continue to work with our law enforcement partners to make New Castle County and Delaware a safer place."
This case was investigated by the FBI, DEA, and the Department of Homeland Security. U.S. Attorney Weiss also wishes to thank the Pennsylvania State Police. The case is being prosecuted by Assistant U.S. Attorney Alexander P. Ibrahim.
Debt Restructuring Scammer Pleads GuiltyRead 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 Sergiy Bezrukov, 35, of Salamanca, NY, formerly of Queens, NY, pleaded guilty to conspiracy to commit bank fraud and money laundering before U.S. District Judge Lawrence J. Vilardo. The charges carry a maximum penalty of 35 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Stephanie Lamarque, Wei Xiang, and Mary Clare Kane, who are handling the case, stated that the defendant opened two offices in the Western New York area to operate fraudulent debt restructuring businesses. Bezrukov and others sent solicitation letters under various fictitious names, offering to assist small businesses with restructuring high interest loans. After the small business owners agreed to hire the defendant and his company, Bezrukov and others would withdraw sums of money from the bank accounts of the small businesses but never repaid any loans on their behalf. When the small business owners attempted to contact the defendant or others at the fraudulent company, they would receive no response.
During the course of the investigation of Bezrukov’s operation in Salamanca, NY, law enforcement officers learned that the defendant was planning to move his business out of Salamanca. As a result, federal search warrants were executed on Bezrukov’s office, home, vehicle and person. Hidden in computer hard drives, officers found and seized approximately $393,000 in cash. Later in the investigation, a check for $729,000 dollars was seized. In addition, other checks, gift cards, and quantities of cash from defendant’s operation, were also seized. In total, more than $1,400,000 was seized Bezrukov.
The defendant used the fraudulent debt restructuring business to defraud approximately 200 victims out of approximately $1,200,000.
A co-defendant, Mark Farnham, was previously convicted and is awaiting sentencing.
The plea is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division; the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Acting Special Agent-in-Charge; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for July 24, 2019, at 9:30 a.m. before Judge Vilardo.
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Confirmed MS-13 gang member sentenced for role in cocaine distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Miguel Angel Cruz-Polanco, a confirmed MS-13 gang member and a citizen of El Salvador, was sentenced today to 137 months incarceration for his involvement with a multi-state drug trafficking operation, United States Attorney Bill Powell announced.
Polanco, age 35, pled guilty to one count of “Aiding and Abetting the Distribution of Cocaine” and one count of “Reentry of a Removed Alien” in September 2018. Cruz-Polanco admitted to selling cocaine in Berkeley County in October 2016, as well as reentering the country illegally.
“The sentence imposed by the court on Mr. Polanco concludes one chapter of a wide-ranging and significant drug and gun investigation in the Eastern Panhandle. Mr. Polanco was a member of the MS-13 gang whose members routinely engage in violence and other criminal activity, including the sale of drugs to finance their activities. Mr. Polanco was also in this country illegally. We will continue to continue to aggressively prosecute all those who bring drugs and violence to our communities. This defendant, and all of the others who have been or who will be sentenced, could not have been brought to justice without the many months of hard work by our task force officers and prosecutors. We owe them a debt of thanks,” said Powell.
Assistant U.S. Attorneys Shawn M. Adkins and Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The U.S. Attorney’s Office of the Western District of Virginia assisted. The investigation is led by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the Potomac Highlands Drug & Violent Crimes Task Force, the Northwest Virginia Regional Drug & Gang Task Force , the West Virginia State Police, the Virginia State Police, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department. Other agencies assisting in the investigation are the Winchester City Police Department; and Frederick County, Virginia Sheriff’s Office; Pittsylvania County; Virginia Sheriff’s Office; and the Henry County, Virginia, Sheriff’s Office.
The investigation was funded in part 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.
City of New York to Comply with the Federal Safe Drinking Water Act and Prevent Contamination of the City’s Drinking Water SupplyRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today that the United States filed suit under the federal Safe Drinking Water Act against the city of New York and the New York City Department of Environmental Protection for their longstanding failure to cover the Hillview Reservoir located in Yonkers, New York. A consent decree requiring the City to make improvements and cover the Reservoir at an estimated cost of $2.975 billion and to pay a $1 million civil penalty was also lodged with the Court. The State of New York will be a co-plaintiff and is a party to the consent decree.
“Today we take the necessary steps to fix a serious public-health problem,” said Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Environment and Natural Resources Division. “Congress enacted the Safe Drinking Water Act to ensure that every American has access to safe water to drink. And we vindicate that Act by ensuring in our enforcement action that the City of New York will comply with this federal law by protecting against contaminants aerially deposited into the Hillview Reservoir, which millions of New Yorkers depend for their everyday drinking water needs.”
“The United States brought this action to ensure that New York City covers the Hillview Reservoir to protect the drinking water City residents receive from the Catskill-Delaware Drinking Water Supply. This Office will continue to monitor and enforce the Consent Decree through completion of its requirements,” said United States Attorney Richard P. Donoghue for the Eastern District of New York.
“New York City failed to comply with Safe Drinking Water Act requirements that keep drinking water safe from harmful bacteria and viruses, even when it was under an order to do so,” said EPA Administrator Andrew Wheeler. “EPA will ensure the City complies with the decree and takes the necessary steps to prevent its drinking water from harming the health of its residents.”
The Reservoir is part of New York City’s public water system, which delivers up to a billion gallons of water a day. The Reservoir is an open storage facility and is the last stop for drinking water before it enters the City’s water tunnels for distribution to city residents. The 90-acre reservoir is divided into two segments, the East and West Basins. Prior to the water entering the Reservoir, it receives a first treatment of chlorine and ultraviolet treatment. Since the Reservoir is an open storage facility, the treated water in the Reservoir is subject to recontamination with microbial pathogens from birds, animals, and other sources, such as viruses, Giardia, and Cryptosporidium. Giardia and Cryptosporidium are protozoa that can cause potentially fatal gastrointestinal illness in humans.
The City has been required to cover the Reservoir since it first executed an administrative order with the State of New York on March 1, 1996. Under the Safe Drinking Water Act and its regulations, the City also became obligated, as of March 6, 2006, to cover the Reservoir by April 1, 2009. In May 2010, EPA entered into an administrative order with the City requiring the City to meet a series of milestones to cover the Reservoir. The first milestone was Jan. 31, 2017. When the City failed to meet that date, this lawsuit followed.
The consent decree requires construction of two projects in addition to the cover, the Kensico Eastview Connection (KEC) and the Hillview Reservoir Improvements (HRI). The KEC entails the construction of a new underground aqueduct segment between the upstream Kensico Reservoir and Eastview ultraviolet treatment facility. The HRI requires extensive repairs to the Hillview Reservoir, including replacing the sluice gates that control water flow and building a new connection between the reservoir and water distribution tunnels. The completion of the KEC is expected to take until 2035. The City estimates the construction cost of the KEC to be approximately $1 billion. The HRI project will be conducted concurrently with the KEC and is anticipated to be completed by 2033. The City estimates the construction cost of the HRI to be approximately $375 million. Following the completion of the KEC and the HRI, the East Basin cover will be constructed, with expected commencement of full operation in 2042, and then the West Basin cover will be constructed, with expected commencement of full operation in 2049. The City’s estimate in 2009 for the cost of its then planned concrete cover for the 90-acre Reservoir was $1.6 billion.
Until the cover is in operation, the consent decree also requires the City to implement Interim Measures to help protect the water, including enhanced wildlife management at the Reservoir and Reservoir monitoring.
In addition, under the consent decree, the City will pay the United States a civil penalty of $1 million for its past violations of federal requirements. The consent decree also provides that the City will pay New York State $50,000, and implement a state Water Quality Benefit Project in the amount of $200,000, to settle the State’s claim for penalties for violations of a state administrative order.
The proposed settlement which is subject to a 30-day public comment period is available at: https://www.justice.gov/enrd/consent-decrees.
The civil negotiations and settlement were handled by the U.S. Attorney’s Office’s Civil Division and the U.S. Department of Justice’s Environment and Natural Resources Division. Negotiations were conducted by Assistant United States Attorney Deborah B. Zwany, working with Elizabeth Yu of the Environment and Natural Resources Division; Phyllis Kaplan Feinmark, Regional Counsel’s Office, EPA Region 2; Doughlas McKenna, Chief of the Water Compliance Branch, EPA Region 2; Nicole Foley Kraft, Chief of the Ground Water Compliance Section, EPA Region 2; Morgan Rog of the EPA Office of Enforcement and Compliance Assurance; Gavin McCabe from the New York State Attorney General’s Office; and Roger Sokol from the New York State Department of Health’s Bureau of Water Supply Protection.
City of New York Agrees to Settle Federal Complaint by Covering the Hillview Reservoir to Prevent Contamination of the City’s Drinking Water SupplyRead the Press Release
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Jeffrey Bossert Clark, Assistant Attorney General for the Environmental and Natural Resources Division of the United States Department of Justice, and Andrew Wheeler, Administrator of the United States Environmental Protection Agency (EPA), announced today that the United States filed suit under the Safe Drinking Water Act against the City of New York and the New York City Department of Environmental Protection (the City) for failure to cover the Hillview Reservoir (the Reservoir), located in Yonkers, New York, in violation of federal regulation and federal and state administrative orders. A Consent Decree requiring the City to cover the Reservoir and pay a civil penalty was also lodged with the Court. Following a 30-day public comment period, the United States will review the comments and, if appropriate, move for entry of the Consent Decree by the Court.
“The United States brought this action to ensure that New York City covers the Hillview Reservoir to protect the drinking water City residents receive from the Catskill-Delaware Drinking Water Supply. This Office will continue to monitor and enforce the Consent Decree through completion of its requirements,” said United States Attorney Richard P. Donoghue.
“Today we take the necessary steps to fix a serious public-health problem,” said Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Environment and Natural Resources Division. “Congress enacted the Safe Drinking Water Act to ensure that every American has access to safe water to drink. And we vindicate that Act by ensuring in our enforcement action that the City of New York will comply this federal law by protecting against contaminants aerially deposited into the Hillview Reservoir, which millions of New Yorkers depend for their everyday drinking water needs.”
“New York City failed to comply with Safe Drinking Water Act requirements that keep drinking water safe from harmful bacteria and viruses, even when it was under an order to do so,” said EPA Administrator Wheeler. “EPA will ensure the City complies with the decree and takes the necessary steps to prevent its drinking water from harming the health of its residents.”
The Reservoir is part of New York City’s public water system. It is an open storage facility and is the last stop for drinking water before it enters the City Water Tunnels for distribution to City residents. The 90-acre Reservoir receives nearly a billion gallons of water each day through the Catskill and Delaware Aqueducts, and serves as a holding tank that allows the City to meet daily peak water demand. It is divided into two segments, the East and West Basins. Prior to the water entering the Reservoir, it receives a first treatment of chlorine and ultraviolet treatment. Since the Reservoir is downstream of these treatments and is an open storage facility, the finished water[1] in the Reservoir is subject to recontamination with microbial pathogens, such as viruses, Giardia and Cryptosporidium, from birds, animals and other sources. Giardia and Cryptosporidium are protozoa that can cause potentially fatal gastrointestinal illness in humans. If the water in the Reservoir were to be re-contaminated, public health would be threatened, since sufficient microbial treatment is not available downstream of the Reservoir. A cover is necessary to prevent recontamination by such pathogens. Until the cover is in operation, the City is required to take active measures to control wildlife in and around the Reservoir and monitor the Reservoir to ensure that the water is safe for drinking.
The City has been required to cover the Reservoir since it first executed an Administrative Order with the State of New York on January 26, 1999. On March 6, 2006, the City also became obligated to cover the Reservoir under federal regulation, specifically the Safe Drinking Water Act. The regulation required uncovered finished water storage facilities, such as the Reservoir, to be covered by April 1, 2009, or for the discharge from the uncovered finished water storage facilities to be treated to achieve inactivation and/or removal of microbial contaminants. In May 2010, EPA entered into an Administrative Order requiring the City to meet a series of milestones leading to the completion of a cover for the Reservoir. The first milestone date was January 31, 2017. The City failed to meet that date, and this lawsuit followed.
The Consent Decree contains requirements for construction of two projects in addition to the cover, the Kensico Eastview Connection (KEC) and the Hillview Reservoir Improvements (HRI). The KEC entails the construction of a new underground aqueduct segment between Kensico and Eastview that replaces the previously planned Catskill Aqueduct Pressurization Project. The HRI requires extensive repairs to the Hillview Reservoir, including replacing the sluice gates that control water flow and building a new connection between the reservoir and water distribution tunnels. The completion of the KEC is expected to take until 2035. The City estimates the construction cost of the KEC to be approximately $1 billion. The HRI project will be conducted concurrently with the KEC and is anticipated to be completed by 2033. The City estimates the construction cost of the HRI to be approximately $375 million. While the KEC and HRI construction and repair work are underway, the City will conduct facilities planning and design work for the Hillview cover. Following the completion of the KEC and the HRI, the East Basin cover will be constructed, with expected commencement of full operation in 2042, and then the West Basin cover will be constructed, with expected commencement of full operation in 2049. The City’s estimate in 2009 for the cost of its then planned concrete cover for the 90-acre Reservoir was $1.6 billion. The actual cost of the cover may be lower, should the City choose a different type of cover.
Because the schedule in the Consent Decree is lengthy, and there is a possibility that the schedule could be accelerated under certain circumstances, the Consent Decree provides for potential acceleration. The Consent Decree also requires the City to implement Interim Measures to protect the water until the Hillview Reservoir cover is in full operation including: (1) enhanced wildlife management at the Reservoir; (2) weekly sampling of source water for Cryptosporidium and Giardia at the Kensico Reservoir effluent(s), and Cryptosporidium and Giardia sampling at the Reservoir effluent; (3) quality control sampling of the Reservoir effluent; and (4) implementation of a Cryptosporidium and Giardia Action Plan for response procedures for elevated Cryptosporidium and Giardia at the Reservoir.
In addition, under the Consent Decree, the City will pay the United States a civil penalty of $1 million for its past violations of federal requirements. The Consent Decree also provides that the City will pay New York State $50,000, and implement a state Water Quality Benefit Project in the amount of $200,000 to settle the State’s claim for penalties for violations of a State administrative order.
The civil negotiations and settlement were handled by the Office’s Civil Division. Assistant United States Attorney Deborah B. Zwany is in charge of this matter, working together with Elizabeth Yu, U.S. Department of Justice, Environment and Natural Resources Division, Phyllis Kaplan Feinmark, Regional Counsel’s Office, EPA Region 2, Doughlas McKenna, Chief of the Water Compliance Branch, EPA Region 2 and Nicole Kraft, Chief of the Ground Water Compliance Section, EPA Region 2, Gavin McCabe from the New York State Attorney General’s Office, and Roger Sokol from the New York State Department of Health’s Bureau of Water Supply Protection.
[1] Finished water is water that has been introduced into the distribution system of a public water system and is intended for distribution and consumption without further treatment, except as necessary to maintain water quality in the distribution system.
Child Predator Sentenced to 97 Months in Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Court Judge Brian A. Jackson sentenced STEVEN J. EVERHARDT, age 52, of Baton Rouge, Louisiana, to serve 97 months in federal prison following his conviction for possession of child pornography. EVERHARDT will also be required to serve five years of supervised release, register as a convicted sex offender upon his release from prison, pay a special assessment of $5,100, and pay a total of $66,000 in restitution to the victims who were identified as children photographed in the images.
This criminal case began when the FBI conducted an undercover operation and obtained numerous images of child pornography from an IP address at EVERHARDT’s home. During a subsequent search of EVERHARDT’s home, over 50,000 images were discovered on EVERHARDT’s computers. These images were of minors engaged in sexually explicit conduct, some of which depicted the sexual abuse of toddlers, sadistic or masochistic conduct involving minor victims, and violence against minor victims. On December 10, 2018, EVERHARDT pled guilty to one count of knowingly possessing material which contained images of child pornography.
U.S. Attorney Fremin stated, “The sexual exploitation of children is one of the most despicable acts of human behavior and will always be a priority for this office. This conviction and sentence should serve as a reminder that this office will not tolerate those who prey upon innocent and vulnerable children. We will use every resource at our disposal to reach our goal of keeping children safe from the predators who exploit them. I want to thank the prosecutors in our office as well as the FBI for their important work in this case.”
FBI New Orleans SAC Eric Rommal stated, “Steven Everhardt preyed upon vulnerable and innocent children, many of whom were too young to communicate they were being abused. There is no place in society for sexual deviants like Steven Everhardt or anyone of his kind. The FBI remains committed to working with our ICAC partners, the LA Attorney General's Office, Louisiana State Police, Homeland Security Investigations, and East Baton Rouge Sheriff's Office to eradicate all forms of child sexual abuse."
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Fred Menner.
Business Owner and Business Face Federal Charges for Embezzlement and Theft from Indian Tribal OrganizationsRead the Press Release
United States Attorney Ron Parsons announced that a business owner and his business have been indicted by a federal grand jury for Embezzlement and Theft from an Indian Tribal Organization.
Dustin Martin Kirk, age 46 of Sisseton, South Dakota, was indicted on March 5, 2019, on two counts of embezzlement and theft from an Indian Tribal Organization. Two counts in the indictment relate to his dissolved business, Siouxland Lumber & Materials, LLC. Kirk appeared before U.S. Magistrate Judge William D. Gerdes on March 11, 2019, and pleaded not guilty to the Indictment.
The Indictment alleges that between in or about August 2016 and December 2018, in the District of South Dakota, Dustin Martin Kirk and his business embezzled, stole, and converted more than $1,000 of monies, funds, credits, goods, assets, and other property belonging to Dakota Nation Development Corporation and the Sisseton-Wahpeton Housing Authority, both of which being entities of the Sisseton-Wahpeton Oyate Sioux Tribe and Indian Tribal Organizations.
The maximum penalty upon conviction on each count is up to 5 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy Jehangiri is prosecuting the case.
The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about the Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Brentwood Based WellCity, Inc. Founder Sentenced to 20 Years in Federal Prison for Fraud SchemeRead the Press Release
NASHVILLE, Tenn. – March 18, 2019 – George David George, 64, of Franklin, Tennessee, and the former owner of WellCity, Inc. (“WellCity”) will spend the next 20 years in federal prison for operating a fraudulent investment scheme that bilked dozens of investors out of $3 million, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
George was sentenced today by visiting U.S. District Judge Billy Roy Wilson, sitting by designation, who also ordered George to pay $2,833,968.77 in restitution and ordered that he remain in custody to begin serving his sentence. George has been in federal custody since January, 4, 2019, when he was apprehended by U.S. Marshals in Florida after absconding from the Middle District of Tennessee in May, 2017.
“I commend our prosecutors, law enforcement partners and the many victims who persevered throughout the life of this case,” said U.S. Attorney Cochran. “Because of their tenacity, Mr. George will have little to no chance of inflicting his many deceitful scams upon anyone else as he spends the next 20 years in prison.”
George was initially charged in May 2015 with securities fraud, mail fraud, wire fraud, and money laundering and was charged with additional counts of wire fraud in February 2017. George was later indicted in May 2017 for failing to appear in U.S. District Court, after he failed to appear for a bond revocation hearing and prior to the start of his trial scheduled for May 16, 2017.
Today, during a plea hearing, George pleaded guilty to seven counts of wire fraud, and one count of mail fraud, securities fraud and money laundering. George admitted that he represented himself as the founder and CEO of WellCity, Inc., a company based in Brentwood, Tennessee, that purported to operate a social network devoted to wellness. George solicited millions of dollars from investors by making misrepresentations regarding the revenue and assets of the company, misrepresentations regarding collateral to secure investors’ loans, and misrepresentations regarding the status of a supposed WellCity initial public offering.
George concealed from investors the facts that WellCity had earned very little revenue and had not successfully attracted significant corporate sponsorship; that WellCity had breached investment contracts with dozens of investors and owed millions of dollars to prior investors; that George had made repeated but unfulfilled promises, over the course of several years, that shares of WellCity stock would imminently start trading publically; and that George continued to offer supposed shares in WellCity stock even after the Tennessee Securities Division of the Department of Commerce and Insurance issued a Cease & Desist Order prohibiting him from doing so.
At the conclusion of the plea hearing, the Court moved immediately to the sentencing phase and several witnesses testified about George’s conduct during his time on the run, including video testimony from a victim in Florida. According to testimony, during this time, George lived in multiple jurisdictions and used two different aliases to conceal his identity and to avoid apprehension.
First, George lived in Houston, Texas, under the alias “David Brown,” using fake identity documents, including a fake International Driver’s License bearing George’s photo. While living in Houston, George solicited investments in a sports membership business he operated, causing significant loss to investors. George next lived in Huntsville, Alabama, where he adopted the alias “Stephen Olivier,” using stolen identity documents from a neighbor whom he had befriended. While living there, George worked at a Mercedes dealership in Huntsville and leased a $70,000 Mercedes using that stolen identity.
Finally, George went to Ponte Vedra Florida, where he represented himself as a Harvard-educated psychiatrist named Stephen Olivier. As Dr. Olivier, George “treated” patients in Ponte Verde. A video testimonial from a witness was played today’s hearing, during which the witness said she paid George, whom she knew as “Dr. Stephen Olivier,” $750 to “treat” her 16-year old son, who was suffering from depression. George conducted “therapy sessions” with her son and ultimately gave her an envelope containing Clonazepam for her son to take. George had previously taken this medication from a woman he met on Match.com and with whom he was having a romantic relationship with, while deceiving her as well. After her son took the medication, he became suicidal and had to be hospitalized. George was apprehended and arrested by the U.S. Marshals shortly thereafter in January 2019.
When pronouncing the sentence, Judge Wilson remarked that George had “larceny in his heart” and he felt it was his foremost duty to protect the public from George and his propensity to continue his pattern of fraud and deceit.
This case was investigated by the FBI; the United States Postal Inspection Service; the United States Marshals Service; and the IRS-Criminal Investigation. Assistant United States Attorneys Kathryn W. Booth, Miller A. Bushong, and Henry C. Leventis prosecuted the case.
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Bookkeeper Pleads Guilty to Stealing More Than Half A Million Dollars from Metairie ArchitectRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced Thursday, March 14, 2019 the guilty plea of CHRISTELLE SCHMIDT, age 65 of Thibodeaux, Louisiana to one count of violating Title 18, United States Code, Section 2113(b), Bank larceny. The indictment returned in November of 2018 alleged that SCHMIDT stole more than $550,000 from a local architectural firm while employed as a bookkeeper there.
The indictment alleged that starting in 2007 and continuing through 2017 through a series of fraudulent activities SCHMIDT committed the offense. The indictment further alleged that she used two different schemes to purloin the funds, which were in the care, custody of and control of several federally insured banks in the New Orleans area.
The indictment further alleged that her second scheme involved charging personal expenses on company credit cards issued to her. She paid the credit cards using the automated clearing house (ACH) accounts of the firm, without the permission of the firm.
SCHMIDT faces up to 10 years incarceration, a $250,000 fine and restitution and 3 years supervised release. Sentencing is set for June 13, 2019.
U.S. Attorney Strasser praised the work of the United States Secret Service in investigating the matter. The case is being prosecuted by Assistant United States Attorney Carter K.D. Guice Jr.
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Berkeley County man sentenced for drug distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ellis Reginald Fennell, of Martinsburg, West Virginia, was sentenced to 24 months incarceration for a drug distribution charge, United States Attorney Bill Powell announced.
Fennell, also known as “Z,” age 30, pled guilty to one count of “Aiding and Abetting Distribution of Cocaine Base ‘Crack’” in December 2018. Fennell admitted to selling “crack” cocaine in May 2017 in Berkeley County and elsewhere.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecutor’s Office, prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Amsterdam Felon Pleads Guilty to Firearms OffensesRead the Press Release
ALBANY, NEW YORK – Nelson Rodriguez, age 39, of Amsterdam, New York, pled guilty today to possession of a firearm in furtherance of a drug trafficking crime and possession of a firearm by a felon.
The announcement was made by United States Attorney Grant C. Jaquith; Amsterdam Police Chief Gregory J. Culick; and John B. Devito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Rodriguez, who was convicted of attempted murder in 2009, admitted to selling cocaine base (crack) in Amsterdam and to possessing a .25 caliber handgun to protect his drugs and drug proceeds. The handgun was discovered under Rodriguez’s mattress during the execution of a search warrant on his Amsterdam apartment in August 2017. Along with the handgun, law enforcement seized 6 grams of crack, 40 individually-wrapped packages of crack, and $2,000 in cash.
Rodriguez faces at least 5 years and up to life in prison, and a term of post-release supervision of up to 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the Amsterdam Police Department and ATF, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Akron Ohio Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
CHARLESTON, W.Va. – An Akron, Ohio, man admitted to possessing methamphetamine with intent to distribute and carrying a firearm during a drug trafficking crime, announced United States Attorney Mike Stuart. Rodney Lammar Hargrove, age 48, pled guilty today before United States District Judge David E. Faber. Stuart commended the investigation conducted by the Metropolitan Drug Enforcement Network Team (MDENT), Charleston Police Department, Kanawha County Sheriff’s Department, St. Albans Police Department, and South Charleston Police Department.
“Another out-of-state drug dealer with meth, heroin and a gun -- and CARFENTANYL -- on Charleston’s West Side,” said United States Attorney Mike Stuart. “Carfentanyl- the same fentanyl analogue that is used to tranquilize elephants. I am so grateful to our law enforcement officers for getting Hargrove and these deadly drugs off our streets and away from our families.”
As established by public court filings and hearings, on February 16, 2018, police were investigating a known drug house on Frame Street in Charleston, West Virginia. The investigators found suspected heroin, needles, and other drug paraphernalia. As they were preparing to leave, Hargrove entered the house. Hargrove admitted that he was carrying a gun, which the investigators retrieved for their safety. Hargrove also gave the investigators permission to retrieve drugs that he was carrying: approximately 20 grams of ice methamphetamine and approximately 6 grams of a mixture containing carfentanyl, a powerful and deadly fentanyl analogue.
Investigators arrested Hargrove and transported him to the police station, where he confessed to investigators that he was a drug dealer. Hargrove explained that he had been receiving about a half-ounce of methamphetamine and 10 grams of heroin at a time for resale in Charleston.
Hargrove is facing a mandatory minimum of ten years in prison and up to life imprisonment when he is sentenced on August 6, 2019. Assistant United States Attorney Drew O. Inman is handling the prosecution.
This case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), a focused enforcement effort that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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21 Vehicles to be Auctioned as Result of Major Marijuana ProsecutionRead the Press Release
Twenty-one high-performance vehicles will be sold in an online auction that resulted from one of the largest federal marijuana prosecutions in Tulsa, announced U.S. Attorney Trent Shores.
The inventory includes drag, drift and track cars, high end street vehicles and a Toyota Tundra SRS. Many are highly modified vehicles to include 2JZE GTE motors, twin turbo engines, nitrous equipped, Stroud parachutes and 200-1800 HP engines. Fourteen are Japanese Domestic Market cars.
On Aug. 31, 2018, Kong Meng Vang, 35, of Tulsa, pleaded guilty to drug conspiracy, possession with intent to distribute 100 kilograms or more of marijuana and money laundering. The defendant admitted to transporting 1,500 pounds of marijuana from California to sell in the Tulsa area. The marijuana was valued at $5 million. As part of the plea agreement, the United States and Vang agreed to the forfeiture of 21 of the defendant’s vehicles along with seven residences, firearms and ammunition.
“Vang profited by fueling the addiction of others. He sold, literally, tons of marijuana in northeastern Oklahoma. With his illegal drug profits, he purchased and modified race cars, some of which looked like they were straight off the set of The Fast and The Furious. But here’s the deal: Drug dealers don’t get to keep the luxury items they purchased with illicit drug proceeds,” said U.S. Attorney Shores. “These cars are being auctioned starting today, and the money will go to help state and local law enforcement in their drug enforcement efforts.”
The U.S. Marshals Service along with Apple Towing are selling the high-performance cars at an on-line auction starting March 18 at 10 am CST and closing April 1 at 10 am CST. To view auction details and all vehicles, go to the U.S. Marshals Service’s authorized auctioneer Apple Towing’s website here. Each car will have a link labeled “specification sheet” which will provide a detailed list of equipment on each car.
As advertised, many of these vehicles are for Off Road/Track use only and cannot be titled, registered or operated on U.S. roadways.
Interested buyers can preview the cars in person on March 29, from 9 am- 5 pm CST, at Race Communications: 805 Jet Drive, Midwest City, Oklahoma.
Below is a highlight of some of the unique cars that can be purchased:
2009 Nissan GT-R https:(spec sheet)
1997 Lexus SC300 (spec sheet
1991 Acura NSX (spec sheet)
1972 Datsun 240Z, Pro-Street/2L (spec sheet)
1993 Toyota Supra Pro-Street/Strip (spec sheet)
1999 Nissan Skyline GTR R34 (spec sheet)
2000 Mitsubishi Lancer EVO VI Tommi Makinen GSR (spec sheet)
This case resulted from a joint investigation conducted by the Tulsa Police Department; Drug Enforcement Administration; U.S. Department of Treasury, IRS-Criminal Investigation; and U.S. Marshals Service. Assistant U.S. Attorney Joseph F. Wilson prosecuted the case as part of the U.S. Attorney’s Organized Crime and Drug Enforcement Task Force. Assistant U.S. Attorney Catherine J. Depew handled the forfeiture of assets.
Friday 15 March 2019
“Straw Hat Bandit” Richard Boyle Convicted of 11 Bank Robberies at TrialRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Richard Boyle, 59, of Doylestown, PA was convicted today by a federal jury of 11 separate bank robberies, 10 counts of brandishing, using, and carrying a firearm during a crime of violence, and 10 counts of money laundering. The sentencing hearing is scheduled on July 15, 2019 before the Honorable Gene E.K. Pratter.
The defendant was a serial bank robber, sometimes referred to as the “Straw Hat Bandit.” During 11 separate bank robberies, the defendant stole a total of $495,686. He was able to steal that stunning total by threats of violence, including taking over the bank and forcing bank employees at gunpoint to open the vaults and cash-rich ATM machines. The defendant made careful plans to avoid apprehension, including wearing disguises, gloves, and even spreading bleach on the floor of the banks to conceal his DNA. Immediately prior to certain bank robberies, the defendant attempted to slow the police response time to the bank robbery alarms by calling police or security about false reports, including a bomb threat at a country club, a planned attack at a mall, and a man with a gun at Temple University. After the robberies, the defendant laundered the proceeds of his robberies by routing the funds through his photography business, Sky Eye View, in an attempt to conceal the source of this income.
“The defendant’s conduct in this case was outrageous,” said U.S. Attorney McSwain. “From robbing banks and holding innocent bank employees at gunpoint to calling in hoax threats to divert law enforcement resources and slow response time, Boyle had no regard for the safety of anyone in the community. He only cared about lining his own pockets with stolen cash. We are grateful that the jury held him accountable for his many crimes.”
“Eight and a half years ago, Richard Boyle stood in a different courtroom, having confessed to a string of bank robberies,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “He said he wished he could’ve made better choices. But after serving out his prison sentence, he was soon robbing banks again--this time, in disguises and at gunpoint. Given the chance to do and be better, he instead chose to escalate his crimes. In doing so, he terrorized the employees of nearly a dozen banks and put people’s lives at risk. The FBI appreciates that this jury, having weighed the considerable evidence against Mr. Boyle, chose to find him guilty as charged.”
The case was investigated by the Federal Bureau of Investigation, and the case is being prosecuted by Assistant United States Attorneys Robert Livermore and Sean McDonnell.
Worcester Man Charged with Possessing Child PornographyRead the Press Release
BOSTON – A Worcester man was charged in federal court in Worcester with possession of child pornography.
Michael Chapman, 62, was charged with one count of possession of child pornography. He appeared in federal court in Worcester yesterday and consented to a voluntary order of detention.
On July 2, 2017, Chapman allegedly uploaded two images depicting child pornography using his Skype account. Chapman is a registered Level 3 sex offender due to multiple prior convictions: In 2004, he was convicted of two counts of indecent assault and battery on a child under 14 and three counts of obscene material; in 1994, he was convicted of transporting in interstate commerce a visual depiction of a minor engaging in sexually explicit conduct; and, in 1984, he was convicted of rape of a child and four counts of lewd and lascivious acts.
The charge provides for a sentence of no greater than 20 years in prison, five years and up to a lifetime of supervised release, and a fine of $250,000. Due to prior convictions, Chapman faces a minimum mandatory sentence of 10 years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Massachusetts State Police Superintendent Colonel Kerry Gilpin; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Lelling’s Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Worcester Man Charged with Federal Firearm OffenseRead the Press Release
BOSTON - A Worcester man was charged yesterday in federal court in Worcester with being a felon in possession of a firearm.
Leroy Byron, 34, was indicted on one count of being a felon in possession of a firearm. Byron has been in federal custody since he was charged by complaint in November 2018.
According to the charging documents, on Nov. 5, 2018, Brown was arrested after law enforcement seized a loaded Intratec TEC-9 9mm Luger pistol and 32 rounds of ammunition from his vehicle during a traffic stop. Byron is prohibited from possessing a firearm due to prior convictions punishable by more than one year in person.
The charging statute provides for a sentence of no greater than 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wilkinson County Deputy Sheriff and Wilkinson County Resident Charged in Wire Fraud SchemeRead the Press Release
Jackson, Miss. – Wilkinson County Deputy Sheriff Christopher James, 43, and Kelvin Tolliver, 54, both residents of Woodville, Mississippi, have been indicted on conspiracy and wire fraud charges, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
James and Tolliver are charged with one count of conspiracy and one count of wire fraud involving a scheme and artifice to defraud Mississippi Farm Bureau. The indictment alleges that James and Tolliver conspired to fraudulently obtain insurance proceeds by creating and submitting a false offense report with the Wilkinson County Sheriff’s Department stating that Tolliver’s ATV had been stolen when, in fact, the ATV had not been stolen. James used his position as a Wilkinson County Deputy Sheriff to prepare and submit the false offense report, which was used to obtain over $12,000 in insurance proceeds. James was also employed as a guard at the Louisiana State Penitentiary in Angola, Louisiana.
Tolliver is scheduled to be arraigned before United States Magistrate Judge Keith Ball today at 2:30 p.m. James was arraigned before United States Magistrate Judge Ball on Wednesday, March 13, 2018, and released on a $10,000 bond.
The case is currently scheduled for trial in Natchez before United States District Judge David C. Bramlette on May 6, 2019.
U.S. Attorney Hurst commended the Public Corruption Task Force of the FBI’s Jackson Division, which is comprised of Special Agents with the FBI and Investigators from the Mississippi State Auditor’s Office, for their work on the investigation and commended the assistance of the DEA and the Mississippi Bureau of Narcotics. The case is being prosecuted by Assistant United States Attorney Dave Fulcher.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent unless and until proven guilty in a court of law.
United States Alleges Multiple Environmental Violations by the City of QuincyRead the Press Release
BOSTON – The United States has filed a civil complaint alleging that the City of Quincy is violating the Clean Water Act by discharging sewage and untreated wastewater into the Boston Harbor, Dorchester Bay, Quincy Bay and other waterways from the City’s sanitary sewer and storm drain systems.
The complaint alleges that water quality samples from 2009 through 2018 demonstrated that Quincy discharged pollutants, including the bacteria commonly known as E. coli and Enteroccous, onto Quincy beaches and tidal areas along the coastline. It also alleges that the water quality samples taken from Quincy Bay, Sagamore Creek, Town Brook, Town River Bay and Furnace Brook from the period 2009 through 2013 showed the discharge of ammonia, surfactants and pharmaceutical compounds, which are indicative of sewage waste. In addition, the complaint alleges that Quincy’s sanitary sewer system overflowed on numerous occasions, resulting in discharges of sewage and untreated wastewater.
“The Clean Water Act is designed to protect the waters of the United States for the health and enjoyment of its citizens. This complaint demonstrates our commitment to ensuring that our waters and beaches are protected from discharges such as raw sewage and seeks to require that the City of Quincy take the important and necessary steps to do so,” said United States Attorney Andrew E. Lelling.
“This complaint represents a critical step in the ongoing cleanup of Boston Harbor and nearby urban rivers,” said Deb Szaro, Acting Regional Administrator of EPA’s New England region. “EPA is committed to ensuring the restoration of Boston Harbor and addressing sewage discharges in local communities continues in order to protect public health and clean water.”
The Clean Water Act provides for monetary daily penalties of $37,500 for each violation that occurred on or before Nov. 2, 2015, and $54,833 for each violation occurring after Nov. 2, 2015. The complaint seeks the recovery of penalties and requests that the Court permanently enjoin the City from future violations of the Clean Water Act.
EPA has focused enforcement and compliance resources on the most serious environmental violations, including keeping raw sewage and contaminated stormwater out of our nation’s waters. The United States Attorney’s Office, working with the Department of Justice’s Environment and Natural Resources Division, filed the complaint on behalf of the U.S. Environmental Protection Agency (EPA) as part of that effort. Raw sewage overflows and inadequately controlled stormwater discharges from municipal sewer systems introduce a variety of harmful pollutants, including disease causing organisms, metals and nutrients that threaten our communities’ water quality and can contribute to disease outbreaks, beach and shellfish bed closings, flooding, stream scouring, fishing advisories and basement backups of sewage.
U.S. Attorney Lelling and EPA Acting Regional Administrator Szaro made the announcement today. The case is being handled by Assistant U.S. Attorney Susan M. Poswistilo of Lelling’s Civil Division.
Uniontown Man Pleads Guilty to Defrauding his Employer, Failing to File Tax ReturnsRead the Press Release
PITTSBURGH, PA - A resident of Uniontown, Pennsylvania, pleaded guilty in federal court to charges of mail fraud, tax evasion, and willful failure to file income tax returns, United States Attorney Scott W. Brady announced today.
Eugene Traficante, 44, pleaded guilty yesterday to four counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that in 2006, Traficante was hired to perform billing and bookkeeping work for a business located in Steubenville, Ohio. As part of his duties, Traficante had access to a post office box where the business received payments from customers through the United States mail. In May 2006, Traficante opened a bank account at National City Bank and began depositing into the account checks that he removed from the company’s post office box without the knowledge or consent of the owner of the victim business. Traficante withdrew fraudulently obtained monies from the National City Bank account for his own personal benefit. Traficante stole and/or diverted approximately 168 checks totaling $345,552.59. Additionally, from around January 2011 through April 15, 2012, Traficante willfully attempted to evade income tax due and owing by him to the United States for the 2011 calendar year. Traficante also willfully failed to file income tax returns following the close of the 2012 and 2013 calendar years despite being required by law to do so.
Judge Bissoon scheduled sentencing for July 9, 2019. The law provides for a maximum total sentence of up to 20 years in prison and a fine of up to $250,000 for the mail fraud offense, up to five years in prison and a fine of up to $250,000 for tax evasion, and up to one year in prison and up to a $100,000 fine for each count of conviction of failure to file tax returns. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Internal Revenue Service and the United States Postal Inspection Service conducted the investigation leading to the indictment in this case