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23 April 2019
Indian National Sentenced to 60 Months for His Leadership Role in Dangerous Human Smuggling ConspiracyRead the Press Release
An Indian national was sentenced today for his leadership role in a complex, transnational conspiracy to smuggle aliens from India to the Unites States for profit, which claimed at least one life and endangered many others.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Puerto Rico made the announcement.
Yadvinder Singh Sandhu, 61, an Indian national, was sentenced to 60 months in prison followed by three years of supervised release. On Jan. 18, 2019, Sandhu pleaded guilty to one count of conspiracy and 15 counts of smuggling aliens to the United States for profit before U.S. Magistrate Judge Silvia Carreño-Coll of the District of Puerto Rico. District Judge Carmen C. Cerezo accepted the guilty plea and sentenced the defendant. Sandhu was charged in an indictment returned by a federal grand jury in the District of Puerto Rico on March 15, 2017. Sandhu has also used the names “Yadvinder Singh Bhamba,” “Bhupinder Kumar,” “Rajinder Singh,” “Robert Howard Scott” and “Atkins Lawson Howard.”
According to admissions in Sandhu’s plea agreement, since 2013, Sandhu had a leadership role in a human smuggling conspiracy operating out of the Dominican Republic, Haiti, Puerto Rico, India and elsewhere. Sandhu admitted he personally assisted around 400 aliens to unlawfully enter the United States between 2013 and 2015 as part of the conspiracy. He also oversaw and directed co-conspirators operating out of the Caribbean.
Sandhu and other members of the conspiracy made flight arrangements for aliens to travel from India through other countries – including Thailand, the United Arab Emirates, Argentina, Iran, Panama, Venezuela, Belize and Haiti – to the Dominican Republic. The Dominican Republic was used as a staging area, where aliens were housed before being transported to the United States. The organization brought groups of aliens from the Dominican Republic to Puerto Rico or Florida by boat. Once the aliens reached Puerto Rico or Florida, they were picked up by co-conspirators and taken to stash houses until flights could be arranged to California, New York, or elsewhere in the United States. Sandhu and others arranged for fraudulent identifications for some aliens to use in the United States.
The boat trips organized by Sandhu and his co-conspirators to transport aliens from the Dominican Republic to the United States were perilous. Boat captains used old, damaged, cracked, unlicensed, overcrowded and unsafe boats to make the journey. In at least one instance, an alien died in a boat on his way to the United States.
At times, the smugglers would take passports from the aliens during their journeys, physically assault them and threaten their families to collect money. Aliens paid between $30,000 and $85,000 to be smuggled from India to the United States. From at least 2013 to 2016, human smuggling was Sandhu’s primary source of income.
Members of the conspiracy, including Sandhu, would use false names or nicknames to communicate with the aliens and with each other. Sandhu, whom fellow smugglers and aliens knew as “Ruby,” also instructed others to use false names or nicknames to avoid detection. Sandhu used fraudulent Indian, Dominican and Jamaican identifications for travel and financial transactions related to the conspiracy.
As part of the conspiracy, Sandhu directed associates to unlawfully smuggle 15 aliens to Puerto Rico in July 2016. Sandhu personally met the 15 aliens in various countries along their journeys, including in Dubai, Thailand, Iran, and the Dominican Republic, and he communicated with them throughout their journeys, which began approximately in January 2016. In some instances, Sandhu created and provided to authorities false employment documents on behalf of the aliens to obtain foreign visas. Sandhu also instructed aliens traveling through foreign airports how to find, and in some instances, pay cash to, corrupt immigration officials, passport control officers, or airport employees in order to bypass regular immigration and passport control procedures.
After the aliens arrived in the Dominican Republic, Sandhu used an alias to arrange and pay for a hotel for them. On July 25, 2016, Sandhu alerted co-conspirators in Puerto Rico to be ready to receive 15 aliens. On July 27, 2016, 15 Indian nationals were transported from the Dominican Republic to Puerto Rico in a 22-foot wooden vessel. The vessel was not marked or equipped with basic safety features, such as lights or navigational equipment. The outside of the vessel was painted black, to make it difficult to see in the water at night. Per safety regulations, the size of the boat should have limited the number of occupants to eight people, but it carried 15 aliens, plus members of the conspiracy who captained the vessel.
The aliens were supposed to be met in Puerto Rico by another smuggler, but they were apprehended instead. Sandhu contacted other members of the conspiracy to find out what happened to the aliens and paid a co-conspirator to locate the aliens and confirm they did not drown, so that the co-conspirators would not lose money. Sandhu was arrested in the Dominican Republic in August 2017, and thereafter transferred to Puerto Rico.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
HSI Puerto Rico investigated this case. The government of the Dominican Republic and the Transnational Crime Investigative Unit of the Dominican Republic National Police provided significant assistance and support during the investigation and have brought charges against other members of the smuggling network.
Trial Attorneys Ann Marie E. Ursini and Christian A. Levesque of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted the case, with the assistance of the Department of Justice’s Office of International Affairs and the U.S. Attorney’s Office for the District of Puerto Rico.
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. Richard Pardue entered a guilty plea to an indictment charging him with distribution of heroin.
“Dealing drugs, no matter the quantity will land you behind bars,” said United States Mike Stuart. “Since becoming United States Attorney, our number one priority has been a sense of urgency to fight the opioid epidemic. We fight that fight with every tool we have every day.”
Pardue admitted that on January 18, 2017, he met a confidential informant in Ona, West Virginia. He gave the informant half of a gram of heroin in exchange for $60.
Pardue faces up to twenty years in federal prison when he is sentenced on July 29, 2019.
The Violent Drug and Crime Task Force West 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.
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Harrisburg Man Charged with Knifepoint Carjacking in Lancaster, PARead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Suudimon Washington, 32, of Harrisburg, Pennsylvania was charged by information today with one count of carjacking. The information charges Washington for taking of a vehicle from a person in Lancaster at knifepoint on October 12, 2018.
If convicted, the defendant faces a maximum penalty of 15 years’ imprisonment, and up to three years of supervised release. Additionally, Washington faces a possible $250,000 fine and a $100 special assessment.
“When charges are brought against a suspect in a high-profile, violent crime such as the one this defendant allegedly committed, it brings relief to a community on-edge with concern for the safety of their loved ones,” said U.S. Attorney McSwain. “The 85-year-old victim here was terrified. I want to thank our investigating partners at the federal and local level who did such tremendous work to allow our office to file these charges.”
“Violent crime can have such a chilling effect on a community,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “No one, let alone elderly folks, should have to worry about being victimized by an armed robber or carjacker. The FBI and our law enforcement partners will continue to investigate and lock up violent criminals who prey on others without compunction.”
The case is being investigated by the Federal Bureau of Investigation, the Lancaster City Bureau of Police, and the Philadelphia Police Department, and it is being prosecuted by Assistant United States Attorney Robert E. Eckert.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Greek Ship Management Company, Corporate Vessel Owner, and Chief Engineer Indicted for Falsification of Pollution Records, Obstruction of Justice, and Witness TamperingRead the Press Release
A federal grand jury in Wilmington, Delaware, returned a six-count indictment today charging Chartworld Shipping Corporation, Nederland Shipping Corporation, and Chief Engineer Vasileios Mazarakis with failing to keep accurate pollution control records, falsifying records, obstruction of justice, and witness tampering, the Justice Department announced.
The charges stem from the falsification of records and other acts designed to cover up from the Coast Guard the overboard discharges of oily mixtures and machinery space bilge water from the Bahamian-flagged cargo vessel, M/V Nederland Reefer.
According to the indictment, on Feb. 21, 2019, the M/V Nederland Reefer entered the Port of Delaware Bay with a false and misleading Oil Record Book available for inspection by the U.S. Coast Guard. The Oil Record Book failed to accurately record transfers and discharges of oily wastewater on the vessel.
The vessel’s management company, Chartworld Shipping Corporation, the vessel’s owner, Nederland Shipping Corporation, and the Chief Engineer of the vessel, Greek national Vasileios Mazarakis, are all charged with failing to maintain an accurate oil record book as required by the Act to Prevent Pollution from Ships, a U.S. law which implements the International Convention for the Prevention of Pollution from Ships, commonly known as MARPOL. The defendants were also charged with falsification of records, obstruction of justice, and witness tampering for destroying evidence of the illegal discharges and directing lower level crew members to withhold evidence from the Coast Guard.
Finally, the corporate defendants are charged with the failure to report a hazardous condition to the Coast Guard, namely a breach in the hull of the vessel and resulting incursion of seawater into tanks on board the vessel that occurred before the vessel came to port in Delaware.
An indictment is merely an accusation and defendants are presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the Coast Guard Investigative Service. The case is being prosecuted by Senior Trial Attorney David P. Kehoe of the Justice Department’s Environmental Crimes Section and Assistant United States Attorney Edmund Falgowski of the United States Attorney’s Office for the District of Delaware.
Gang Member Sentenced to 54 Months for Gun CrimeRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Kendal J. Harris, Madison, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 54 months in federal prison for possessing a firearm as a convicted felon. Harris pleaded guilty to this charge on January 3, 2019. His prison term will be followed by a three-year period of supervised release.
On August 27, 2018, the Madison Police Department Violent Crime Unit and the Dane County Narcotics Task Force arrested Harris on an outstanding probation warrant. Harris was in possession of a loaded firearm at the time. Harris has several felony convictions, including battery to a public transit operator.
Harris requested a 24-month sentence, claiming he possessed a firearm because he was protecting himself. According to Harris, several of his friends had recently been murdered and he was targeted. Judge Conley disagreed with this request, finding that Harris had a lengthy history of gang affiliation and a criminal history involving violent crimes. Judge Conley also noted that “gun violence is plaguing the Madison area” and that Harris poses a significant risk of re-offending.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charge against Harris was the result of an investigation conducted by the Madison Police Department Violent Crime Unit. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Gang Member Sentenced for RICO Conspiracy and Attempted MurdersRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to 35 years in prison for RICO conspiracy and multiple attempted murders on behalf of the Nine Trey Gangsters, a violent Bloods street gang.
According to court documents, Malek Lassiter, aka Leeko, 23, joined other gang members on a mission, ordered by co-defendant Antonio Simmons, to kill high-ranking members of a rival “line” of the Nine Trey Gangsters. When Lassiter and the other men were unable to locate the first two individuals they intended to kill, they went to a house in Portsmouth looking for another gang member they planned to shoot. After being told the man they sought was not at home by the woman who opened the door, one of Lassiter’s co-conspirators shot her six times. The woman’s life was saved by the quick response of local EMTs and officers of the Portsmouth Police Department. Meanwhile, Lassiter and the other gang members who fled the shooting fired their guns again when they saw witnesses in the neighborhood looking out of their windows and doors to see what was happening.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Angela Greene, Interim Chief of Portsmouth Police, Larry D. Boone, Chief of Norfolk Police, James A. Cervera, Chief of Virginia Beach Police, Col. K.L. Wright, Chief of Chesapeake Police, and Thomas E. Bennett, Chief of Suffolk Police, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorneys Joseph E. DePadilla, Andrew Bosse, and John F. Butler, and Trial Attorney Teresa A. Wallbaum of the Justice Department’s Organized Crime and Gang Section, prosecuted the case.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Billy Club. 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 principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-130-5.
GPM Investments Settles ADA Dispute Involving Service AnimalsRead the Press Release
ALEXANDRIA, Va. – GPM Investments, LLC, which is headquartered in Richmond and operates over 1,400 convenience stores in 22 states, including approximately 200 stores in Virginia, has agreed to settle a dispute under the Americans with Disabilities Act (ADA) regarding an allegation of refusal of service to an individual with disabilities accompanied by a service animal.
“People with disabilities who are accompanied by a service animal are entitled to participate in their communities on an equal basis to others, including visiting retail establishments,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We are pleased that GPM has agreed to take steps to ensure that these individuals are welcome in all of its stores.”
The investigation began with a complaint from the public alleging that a fas mart ® branded convenience store refused service to an individual with disabilities accompanied by a service animal.
Under the settlement agreement, GPM will adopt a service animal non-discrimination policy applicable to all stores that it operates, including fas mart branded stores, train all its employees, display signs in its stores indicating that service animals are welcome, and pay $1,000 in damages to the complainant.
This matter was handled by Assistant U.S. Attorney Steven Gordon, the Civil Rights Enforcement Coordinator for the Eastern District of Virginia.
The ADA prohibits discrimination against people with disabilities by public accommodations, such as convenience stores. Among other things, public accommodations must allow people with disabilities the full and equal enjoyment of their goods, services and facilities. They must make reasonable modifications of their policies, practices and procedures to permit people with disabilities to be accompanied by service animals.
The Department of Justice has a number of publications available to assist entities in complying with the ADA, including Frequently Asked Questions about Service Animals and the ADA. For more information on the ADA and to access these publications, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD). ADA complaints may be filed by email to [email protected].
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.
Fugitive Wanted Since 2015 on Robbery Charges ApprehendedRead the Press Release
A fugitive wanted since 2015 for a Hobbs Act Robbery related to jewelry store smash and grabs in 2014 and 2015 appeared in federal court today. Arthur Berry Jr. was arrested by the FBI’s Phoenix Division on March 18, 2019 and was returned to Michigan earlier this week to face charges for conspiring to interfere with commerce by robbery.
Berry, 32, from Detroit, Michigan, was found in Phoenix, Arizona, where he allegedly fled in 2015 after being indicted by a federal grand jury earlier that year. Berry was a leader of a group that conducted the following robberies:
September 2014: Jared the Galleria of Jewelry in Toledo, Ohio
October 2014: Lux Bond & Green Jewelers in West Hartford, Connecticut
November 2014: Fink’s Jewelers in Sterling, Virginia
November 2014: RF Moeller Jewelry in St. Paul, Minnesota
February 2015: Jared the Galleria of Jewelry in Erie, Pennsylvania
September 2015: Jared the Galleria of Jewelry in Portage, Michigan
Berry was the only remaining fugitive out of nearly two dozen subjects that have been prosecuted since 2014. According to court documents, Berry’s co-defendants all pled guilty and received various sentences, including a fourteen year prison term for one of the group’s leaders, Cedarrius Frost.
“The arrest of Mr. Berry for his involvement in these robberies reflects the dedication, cooperation, and persistence of law enforcement at every level,” said SAC Slater. “We are particularly grateful to the FBI’s Phoenix Division for working diligently over the last few months to locate Mr. Berry and helping us to ensure he faces the consequences for his criminal behavior.”
Berry has been charged with six counts of conspiring to interfere with commerce by robbery. If convicted, Berry would face a statutory maximum sentence of twenty years in federal prison.
This case was investigated by the Federal Bureau of Investigation.
Berry’s arrest involved the participation of and coordination with the FBI Phoenix Division’s Desert Hawk Violent Crimes Task Force and the FBI Detroit Division’s Oakland County Gang and Violent Crime Task Force.
Former Postal Carrier Sentenced to PrisonRead the Press Release
Tampa, Florida - U.S. District Judge Elizabeth A. Kovachevich has sentenced Richard Huntington (45, Lakeland) to 120 days in federal prison for conspiracy to distribute marijuana. Huntington was also ordered to serve a three-year term of supervised release following his imprisonment. He had pleaded guilty on January 11, 2019.
According to court documents, Huntington, a former U.S. Postal carrier, provided addresses along his delivery route to coconspirators who arranged to have packages containing marijuana shipped from Oregon to those addresses. When the packages arrived and were placed in Huntington’s control, Huntington would scan the packages as delivered to the addresses, and then turn them over to his coconspirators for further distribution of the marijuana.
This case was investigated by the U.S. Postal Service, Office of Inspector General. It was prosecuted by Assistant United States Attorney James C. Preston, Jr.
Former IRS Employee Arrested Today After Being Indicted for Filing False Tax ReturnsRead the Press Release
FRESNO, Calif. — A federal grand jury returned an 18-count indictment on April 11 against Deena Vang Lee, 38, of Fresno, charging her with wire fraud, aggravated identity theft, aiding and assisting in the preparation and presentation of false and fraudulent tax returns, and making and subscribing false and fraudulent tax returns, U.S. Attorney McGregor W. Scott announced.
According to court documents, between February 2012 and February 2016, Lee prepared tax returns for a fee for friends, family, and other acquaintances that claimed thousands of dollars in tax credits for education and child care expenses that were not actually incurred. Lee also submitted fraudulent tax returns on her own behalf, failing to report the income from her tax preparation services.
This case is the product of an investigation by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Vince Tennerelli is prosecuting the case.
If convicted, Lee faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Grundy County, Tennessee, Sheriff’s Deputy Charged with Civil Rights Offense and Making False StatementsRead the Press Release
Gregory Higgins, 42, was indicted today for using excessive force against an arrestee while Higgins was a deputy with the Grundy County, Tennessee, Sheriff’s Office, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney for the Eastern District of Tennessee J. Douglas Overbey, and FBI Knoxville Special Agent in Charge Troy A. Sowers.
Higgins is charged with one count of deprivation of rights under color of law and one count of making false statements to the FBI. The indictment alleges that Higgins used unreasonable force when he assaulted handcuffed arrestee A.L., resulting in bodily injury to A.L., and that Higgins then made false statements to the FBI about the assault.
The first count carries a maximum penalty of 10 years of imprisonment while the second count carries a maximum penalty of five years. An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.
This case was investigated by the Knoxville Division of the FBI, and is being prosecuted by Trial Attorney Kathryn E. Gilbert of the Department of Justice’s Civil Rights Division and Assistant United States Attorney Perry H. Piper.
Former GE Engineer and Chinese Businessman Charged with Economic Espionage and Theft of GE’s Trade SecretsRead the Press Release
WASHINGTON – An indictment unsealed today charges Xiaoqing Zheng, age 56, of Niskayuna, New York, and Zhaoxi Zhang, age 47, of Liaoning Province, China, with economic espionage and conspiring to steal General Electric’s (GE’s) trade secrets surrounding turbine technologies, knowing and intending that those stolen trade secrets would be used to benefit the People’s Republic of China. Assistant Attorney General for National Security John C. Demers, U.S. Attorney Grant C. Jaquith, FBI Assistant Director John Brown of the Counterintelligence Division, and Special Agent in Charge James N. Hendricks of the FBI’s Albany Field Office made the announcement.
According to the 14-count indictment (copy attached), Zheng, while employed at GE Power & Water in Schenectady, New York, as an engineer specializing in sealing technology, exploited his access to GE’s files by stealing multiple electronic files, including proprietary files involving design models, engineering drawings, configuration files, and material specifications having to do with various components and testing systems associated with GE gas and steam turbines. Zheng e-mailed and transferred many of the stolen GE files to his business partner, Chinese businessman Zhaoxi Zhang, who was located in China. Zheng and Zhang used the stolen GE trade secrets to advance their own business interests in two Chinese companies, Liaoning Tianyi Aviation Technology Co., Ltd. (LTAT) and Nanjing Tianyi Avi Tech Co. Ltd. (NTAT), companies that research, develop, and manufacture parts for turbines.
The indictment also alleges that Zheng and Zhang conspired to commit economic espionage, as the thefts of GE’s trade secrets surrounding various turbine technologies were done knowing and intending that the thefts would benefit the People’s Republic of China and one or more foreign instrumentalities, including LTAT, NTAT, Shenyang Aerospace University, Shenyang Aeroengine Research Institute, and Huaihai Institute of Technology. The defendants, through LTAT and NTAT, received financial and other support from the Chinese government and coordinated with Chinese government officials to enter into research agreements with Chinese state-owned institutions to develop turbine technologies.
“The indictment alleges a textbook example of the Chinese government’s strategy to rob American companies of their intellectual property and to replicate their products in Chinese factories, enabling Chinese companies to replace the American company first in the Chinese market and later worldwide,” said Assistant Attorney General Demers. “We will not stand idly by while the world’s second-largest economy engages in state-sponsored theft. As part of the Attorney General’s China Initiative, we will partner with the private sector to hold responsible those who violate our laws, and we urge China’s leaders to join responsible nations and to act with honesty and integrity when competing in the global marketplace.”
“As alleged, the thefts of trade secrets to benefit the People’s Republic of China are serious crimes against the victimized company and our country,” said United States Attorney Jaquith. “Both fair competition and incentivized innovation require that American companies be able to rely on the secrecy of technological advances forged through their talent and tenacity. When technology is taken through treachery, we will continue to work with the National Security Division and the FBI to prosecute the perpetrators.”
“American businesses spend many hours and large amounts of money developing unique technology. When such technology is stolen it can be devastating to U.S. businesses and can result in American workers losing jobs,” said FBI Assistant Director Brown. “China continues to support behavior that violates the rule of law. This case demonstrates the FBI will continue to pursue China's efforts to steal American technology.”
“Economic espionage and the theft of trade secrets have a profound impact on our companies and communities,” said FBI Special Agent in Charge Hendricks. “We view this as a grave threat to our economic and national security and the FBI will work tirelessly to prevent the loss of American technology and American jobs.”
Zheng was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, and released with conditions pending a trial before United States District Judge Mae A. D’Agostino.
The economic espionage counts (Counts One, Three, Four, Seven, Eight and Eleven) carry a maximum sentence of 15 years in prison, a fine of up to $5,000,000, and a term of supervised release of up to three years. The trade secrets theft counts (Counts Two, Five, Six, Nine, Ten, Twelve and Thirteen) carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. Count Fourteen of the indictment, which charges Zheng with making false statements to the FBI during a voluntary interview, carries a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years.
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Rick Belliss, and National Security Division Trial Attorneys Jason McCullough and Matthew Chang.
Former GE Engineer and Chinese Businessman Charged with Economic Espionage and Theft of GE’s Trade SecretsRead the Press Release
An indictment unsealed today charges Xiaoqing Zheng, 56, of Niskayuna, New York, and Zhaoxi Zhang, 47, of Liaoning Province, China, with economic espionage and conspiring to steal General Electric’s (GE’s) trade secrets surrounding turbine technologies, knowing and intending that those stolen trade secrets would be used to benefit the People’s Republic of China. Assistant Attorney General for National Security John C. Demers, U.S. Attorney Grant C. Jaquith for the Northern District of New York, Assistant Director John Brown of the FBI’s Counterintelligence Division and Special Agent in Charge James N. Hendricks of the FBI’s Albany Field Office made the announcement.
According to the 14-count indictment, Zheng, while employed at GE Power & Water in Schenectady, New York as an engineer specializing in sealing technology, exploited his access to GE’s files by stealing multiple electronic files, including proprietary files involving design models, engineering drawings, configuration files, and material specifications having to do with various components and testing systems associated with GE gas and steam turbines. Zheng e-mailed and transferred many of the stolen GE files to his business partner, Chinese businessman Zhaoxi Zhang, who was located in China. Zheng and Zhang used the stolen GE trade secrets to advance their own business interests in two Chinese companies - Liaoning Tianyi Aviation Technology Co., Ltd. (LTAT) and Nanjing Tianyi Avi Tech Co. Ltd. (NTAT), companies which research, develop, and manufacture parts for turbines.
The indictment also alleges that Zheng and Zhang conspired to commit economic espionage, as the thefts of GE’s trade secrets surrounding various turbine technologies were done knowing and intending that the thefts would benefit the People’s Republic of China and one or more foreign instrumentalities, including LTAT, NTAT, Shenyang Aerospace University, Shenyang Aeroengine Research Institute, and Huaihai Institute of Technology. The defendants, through LTAT and NTAT, received financial and other support from the Chinese government and coordinated with Chinese government officials to enter into research agreements with Chinese state-owned institutions to develop turbine technologies.
“The indictment alleges a textbook example of the Chinese government’s strategy to rob American companies of their intellectual property and to replicate their products in Chinese factories, enabling Chinese companies to replace the American company first in the Chinese market and later worldwide,” said Assistant Attorney General Demers. “We will not stand idly by while the world’s second-largest economy engages in state-sponsored theft. As part of the Attorney General’s China Initiative, we will partner with the private sector to hold responsible those who violate our laws, and we urge China’s leaders to join responsible nations and to act with honesty and integrity when competing in the global marketplace.”
“As alleged, the thefts of trade secrets to benefit the People’s Republic of China are serious crimes against the victimized company and our country,” said U.S. Attorney Jaquith. “Both fair competition and incentivized innovation require that American companies be able to rely on the secrecy of technological advances forged through their talent and tenacity. When technology is taken through treachery, we will continue to work with the National Security Division and the FBI to prosecute the perpetrators.”
“American businesses spend many hours and large amounts of money developing unique technology. When such technology is stolen it can be devastating to U.S. businesses and can result in American workers losing jobs,” said FBI Assistant Director Brown. “China continues to support behavior that violates the rule of law. This case demonstrates the FBI will continue to pursue China's efforts to steal American technology.”
“Economic espionage and the theft of trade secrets have a profound impact on our companies and communities,” said FBI Special Agent in Charge Hendricks. “We view this as a grave threat to our economic and national security and the FBI will work tirelessly to prevent the loss of American technology and American jobs.”
Zheng was arraigned today in Albany, New York, before United States Magistrate Judge Christian F. Hummel, and released with conditions pending a trial before United States District Judge Mae A. D’Agostino.
The economic espionage counts (Counts One, Three, Four, Seven, Eight and Eleven) carry a maximum sentence of 15 years in prison, a fine of up to $5,000,000, and a term of supervised release of up to three years. The trade secrets theft counts (Counts Two, Five, Six, Nine, Ten, Twelve and Thirteen) carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. Count Fourteen of the indictment, which charges Zheng with making false statements to the FBI during a voluntary interview, carries a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years.
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Rick Belliss, and National Security Division Trial Attorneys Jason McCullough and Matthew Chang.
Former Company Executive Sentenced to over Four Years in Federal Prison for Construction Fraud SchemeRead the Press Release
Columbia, SC - United States Attorney Sherri A. Lydon announced today that Thomas Brock, age 62, of Camden, South Carolina, was sentenced to 51 months in federal prison after pleading guilty to wire fraud.
According to information presented during his guilty plea and sentencing, Brock was involved in a decade-long scheme to defraud the government in the acquisition of military construction contracts. Under programs instituted by the United States Small Business Administration (SBA) and the Department of Veterans Affairs (VA), certain military and federal government contracts are specifically set aside for award to minorities, women, and service veterans. These programs are intended to provide small businesses with an opportunity for growth and experience working through the federal government.
Brock was an executive with Boykin Contracting and used various straw-owners within the company to pose as a female, an African-American, a disabled person, and a veteran in order to qualify for over $160 million dollars’ worth of these government construction contracts. Based on information presented in court, Brock illegally acquired the contracts and siphoned money from the company to support a lavish lifestyle. The scheme fell apart when Brock fraudulently acquired loans to cover the company’s losses and fell behind on the repayments, prompting a civil lawsuit and a criminal investigation.
United States District Judge J. Michelle Childs of Columbia sentenced Brock to 51 months in federal prison, to be followed by three years of court-ordered supervision. There is no parole in the federal system.
“Companies who wish to obtain federal contracts set aside for businesses run by women, minorities, veterans, or those with disabilities must play by the rules,” said U.S. Attorney Lydon. “We will not tolerate those who cheat the system for their own gain, victimizing the government, the companies who should have received these valuable benefits, and the American taxpayer.”
“Providing false statements to obtain federal contracts set aside for small businesses owned and operated by disadvantaged individuals and our nation’s veterans will be met with justice,” said SBA Inspector General Hannibal “Mike” Ware. “Today’s sentencing sends a strong message that those responsible will be held accountable. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
"This sentencing is the product of a thorough investigation and demonstrates the commitment of the Defense Criminal Investigative Service (DCIS) and our law enforcement partners to hold corrupt contractors accountable when they scam small businesses owned by veterans and other disadvantaged individuals,” said Special Agent in Charge Robert E. Craig, Jr., DCIS Mid-Atlantic Field Office. “DCIS will continue to protect the integrity of the Department of Defense by rooting out fraud, waste, and abuse that negatively impacts the welfare of men and women who have served, and continue to serve, our nation."
"This sentencing is the culmination of more than five years of investigative work by our agents and our law enforcement partners," said Frank Robey, director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. "Abusing the laws established to protect small businesses and businesses owned by disabled veterans to line your pockets is truly disgraceful."
The case was investigated primarily by the SBA, DCIS, and VA and prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
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Former Bristol Attorney Sentenced to 46 Months in Prison for Stealing $169K from Conserved PersonsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JODI ZILS GAGNE, 43, of Bristol, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 46 months of imprisonment, followed by three years of supervised release, for stealing more than $169,000 from individuals for whom she served as a court-appointed conservator.
According to court documents and statements made in court, Zils Gagne, an attorney, was a court-appointed conservator for several individuals in Connecticut. A conservator is a person appointed by the probate court to oversee the financial or personal affairs of an adult who is incapable of managing his or her finances or unable to care for himself or herself. Beginning in approximately May 2015, Zils Gagne defrauded several conserved individuals by misappropriating their money and overbilling them. The money that Zils Gagne misappropriated was intended for the conserved persons’ medical care, housing, bills, personal expenses, and legitimate conservator fees. Zils Gagne also misrepresented, or failed to disclose, material facts about her conservatorship activities to the Bristol probate court and others.
Through this scheme, Zils Gagne defrauded six victims of a total of $169,402.74. She defrauded one elderly victim of approximately $136,000, and appropriated $113,000 of that money under the guise of an “investment” when, in fact, it was a 10-year note that paid only a prime rate and was signed between her (as the victim’s conservator) and Zils Gagne’s husband. The money was used to fund her husband’s start-up company, a Bristol-based internet radio station. The terms and details of this transaction were only disclosed after extended proceedings in the probate court, during which Zils Gagne repeatedly lied, sometimes under oath, to the probate court.
The investigation also revealed that Zils Gagne arranged the sale of two victims’ houses to her relative for less than the appraised value of the homes. The buyer than renovated the homes, sold them for a substantial profit, and paid Zils Gagne and her husband kickbacks.
On October 10, 2018, Zils Gagne pleaded guilty to one count of mail fraud.
Judge Bryant ordered Zils Gagne, who is released on a $50,000 bond, to report to prison on July 8.
In September 2018, a Connecticut Superior Court judge suspended Zils Gagne from the practice of law.
This matter was investigated by the Federal Bureau of Investigation and the Greenwich Police Department, with the assistance of the Connecticut Office of Chief Disciplinary Counsel and the New Britain State’s Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
Federal Jury ConvictsWest Tennessee Man of being a Felon in Possession of a Stolen FirearmRead the Press Release
Memphis, TN – A federal jury has found a West Tennessee man guilty of being a felon in possession of a stolen firearm. D. Michael Dunavant, United States Attorney for the Western District of Tennessee announced the guilty verdict today.
According to evidence presented at trial, on April 10, 2018, Halls Police Department and the Dyer County Sheriff’s office responded to a "shots fired" call at the Senior Center in Halls, Tennessee. The defendant, Keaston Tipton, 28, was in one of three vehicles fleeing the scene. When law enforcement responded to the area where the vehicle was headed, they observed Tipton throwing a firearm out of the driver’s side window. Officers retrieved the firearm just south of Dyersburg, and later determined it to be a stolen firearm. At one point during the chase, Tipton tried to evade law enforcement, turning his vehicle off on a side road and pulling into the parking lot of the Sunrise Inn.
He then abandoned the vehicle and fled on foot, but was soon apprehended. As he was caught, Tipton advised officers he had been in the Inn all day and was simply taking a walk to a nearby convenience store. Officers with the Halls Police Department were able to obtain a surveillance video of the shooting at the Senior Center. In the video, Tipton is identified wearing the same clothing as when he was apprehended, shooting and possessing a firearm. Tipton has prior felony convictions for conspiracy to commit aggravated robbery, delivery of a schedule II controlled substance (cocaine), and evading arrest.
Sentencing is set for July 23, 2019 before Chief District Court Judge S. Thomas Anderson, where the defendant faces a possible sentence of up to 10 years imprisonment for violation of 18 U.S.C. 922(g)(1).
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to the community, and this defendant continued to possess and recklessly discharge a stolen firearm despite his prior felony conviction history. There is and ought to be a significant consequence for such recidivist criminal behavior, and this is one more gun-toter that will be removed from our streets. Gun Crime is Max Time."
This case was investigated by the Halls Police Department; Lauderdale County Sheriff's Department; Dyer County Sheriff's Department; Tennessee Highway Patrol; Dyersburg Police Department; FBI Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Hillary Parham is prosecuting this case on behalf of the government.
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Federal Inmate Sentenced to 13 More Months in Prison for Illegally Possessing DrugsRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., pleaded guilty in federal court in Johnstown to a charge of possession of a prohibited object in prison, and immediately following, was sentenced to 13 months in prison and three years’ supervised release, consecutive to the current prison term he is serving, United States Attorney Scott W. Brady announced today.
Dilpreet Singh, 34, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on July 14, 2017, Singh possessed a quantity of Buprenorphine.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, Loretto, Pa., for the investigation leading to the successful prosecution of Singh.
Federal Grand Jury Indicts 15 Individuals for Heroin and Fentanyl Conspiracy in Knoxville and Surrounding CountiesRead the Press Release
KNOXVILLE, Tenn. – On April 16, 2019, a federal grand jury in Knoxville returned an eight-count indictment against Damion Knox, 34, Darnez Turner, 30, Jeremiah Johnson, 23, and Papa Diop, 23, all of Detroit, Michigan; Joshua Cooper, 37, Virgil Crawford, 45, Jessica Bouvier, 30, Stephen Bouvier, 38, Jama Collier, 23, and Tina Berry, 55, all of Knoxville, Tennessee; and, five individuals not yet in federal custody at the time of this release. This case has been set for trial on July 1, 2019.
The indictment, on file with the U.S. District Court, alleges that between May 2018 and April 15, 2019, the 15 individuals conspired to distribute and possessed with intent to distribute a mixture and substance containing 400 grams or more of a detectable amount of fentanyl, a Schedule II controlled substance, and one kilogram or more of a detectable amount of heroin, a Schedule I controlled substance. The indictment also alleges a money laundering charge and other drug related charges for a number of the defendants.
If convicted for conspiracy to distribute and possession with intent to distribute these controlled substances, each faces a mandatory minimum of at least 10 years and up to life in prison, five years of supervised release, a fine of up to $10,000,000, any applicable forfeiture, and a $100 special assessment.
The investigation was led by the Appalachian High Intensity Drug Trafficking Area’s Drug Related Death Task Force and the Organized Crime Unit of the Knoxville Police Department (KPD). Assisting in the investigation and seizure of evidence were various other divisions of KPD, Drug Enforcement Administration, Tennessee Bureau of Investigation, Knox County Sheriff’s Office, Fifth Judicial District Drug Task Force, Knox County District Attorney’s Office and Knox County Regional Forensics Center. Assistant U.S. Attorney Brent N. Jones will represent the United States.
Today, the United States faces an unprecedented drug epidemic. The Centers for Disease Control (CDC) estimates that more than 70,000 Americans died of drug overdoses in 2017. Many of these deaths are attributed to the increased abuse of potent and dangerous synthetic opioids like fentanyl. These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Forces (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. Knox County, Tennessee, has been designated as one of those hot spots.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Federal Charges and Arrest Announced of a Raleigh Man Who Allegedly Defrauded Elderly Durham Woman Through Mail and Wire FraudsRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces the arrest after a federal grand jury sitting in Raleigh previously returned an indictment charging FURMAN ALEXANDER FORD, 49, of Raleigh with eleven counts each of Mail Fraud and Wire Fraud.
Between August 2014 and December 2014, FORD allegedly committed Mail Fraud and Wire Fraud based on the defendant’s scheme to submit fraudulent withdrawal letters on behalf of an elderly victim to New York Life Insurance (NYL) for payments totaling $246,000. FORD worked as a financial advisor for NYL.
In 2009, the victim inherited real property valued at $1.3 million from a relative in Durham, NC. After the estate was settled, FORD assisted the victim in setting-up a charitable trust with NYL using the inheritance proceeds. He worked as an insurance and financial agent at NYL from 2012 to 2015, and met the victim through a mutual friend. The charitable trust agreement provided an annuity payment in the amount of $6,000 per month to victim during her lifetime. As part of FORD’s responsibility as a financial agent, he drafted and submitted authorized letters of withdrawal from the victim’s trust account to pay certain expenses. Under NYL customer service guidelines, the financial agent is required to have the client sign the letter with “wet ink” before submitting to NYL via the mail. The funds would then be electronically wired to the recipient as directed by the client with their full knowledge and consent.
During the course of this investigation, agents identified eleven separate fraudulent letters of withdraw drafted by FORD and submitted to NYL headquarters in NY on behalf of his client. The letters were all mailed by FORD via UPS from his office in Raleigh. The funds requested ranged from $5,000 to $45,000 and totaled $246,000. The proceeds were then electronically wired into the victim’s personal checking account in clear violation of NYL policy. Agents believe the defendant “cut and paste” the victim’s signature from a legitimate letter before making a copy and sending it to NYL on some of the fraudulent letters and on the remaining letters, her signature had been forged. The forged signatures appear to be signed by the same person, presumably FORD.
If convicted on all of the charges, FORD would face a maximum penalty of 20 years imprisonment, a $250,000 fine, and a term of supervised release of not more than 3 years, and restitution.
The charges and allegations contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
Investigation of this case was conducted by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Ethan Ontjes is prosecuting the case for the government.
Extrudex Aluminum, Inc. pleaded guilty to misprision of a felonyRead the Press Release
Extrudex Aluminum, Inc., an aluminum manufacturing company in Mahoning County, with a parent company in Canada, pleaded guilty to misprision of a felony in connection with a conspiracy to obstruct justice related to an investigation by the Occupational Safety and Health Administration.
The company is scheduled to be sentenced August 1.
Extrudex, through its employees, concealed felony obstruction of justice offenses from Extrudex management in Canada and further failed to inform law enforcement of the commission of those offenses. This took place between April 1, 2016, and January 1, 2018, according to a criminal information
This case was investigated by the U.S. Department of Labor, Office of Inspector General. It is being prosecuted by Assistant U.S. Attorneys Carmen Henderson and Om Kakani.
Eagle Rock Man Arrested on Indictment Alleging Investment Scam that Claimed Precious Metals Could Be Extracted from ‘Ancient Slag’Read the Press Release
LOS ANGELES – An Eagle Rock resident was arrested this morning on federal fraud and money laundering charges stemming from a scheme that sold “ancient slag,” a mining waste byproduct that supposedly contained precious metals.
Michael Godfree, 77, is scheduled to be arraigned on a seven-count indictment this afternoon in United States District Court.
According to the indictment that was returned by a federal grand jury on April 19 and unsealed today, Godfree was co-founder of The Minerals Acquisition Company (TMAC), a Pasadena-based outfit that offered to sell slag to victims who were told the company possessed “proof of concept” of a method to extract precious metals from this slag, which was generated from copper mining. TMAC sold ton-quantities of the slag with promises of refining the material and recovering precious metals. TMAC provided victims with supposedly attorney-certified “Certificates of Title” that purported to transfer ownership of the slag to victims.
Godfree’s scheme was nothing more than a series of lies, according to the indictment, which alleges that Godfree and TMAC did not actually own the vast majority of the slag they sold, there was not a commercially viable process for extracting precious metals from the slag, and the business operation had not been endorsed by an attorney.
TMAC was dissolved in 2015, but its operations were largely taken over by Precious Metals of North America, Inc., another of Godfree’s companies.
As a result of the fraudulent conduct, prosecutors believe that Godfree generated at least $7 million in sales from more than 100 victims.
Rather than using the victims’ money for the purchase of slag and to develop an extraction process, prosecutors said Godfree and his co-schemers used victims’ money to pay for, among other things, sales commissions and Godfree’s personal expenses, which included the purchase of luxury items.
The indictment charges Godfree with five counts of mail fraud, one count of money laundering and one count of aggravated identity theft for misusing the name of an attorney.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If he were to be convicted of the seven counts in the indictment, Godfree would face a statutory maximum sentence of 112 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation, West Covina Resident Agency.
This matter is being prosecuted by Assistant United States Attorney Joseph D. Axelrad of the Violent and Organized Crime Section and Assistant United States Attorney Poonam G. Kumar of the Major Frauds Section.
Duxbury Man Sentenced Under Federal Crack House Statute to Time Served and Three Years of SupervisionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that U.S. District Court Judge William K. Sessions III sentenced Mark Russell (a.k.a. “Snake”), 61, of Duxbury, Vermont, to time-served for violating the federal “Crack House Statute.” This statute prohibits making a place, such as a residence, available for manufacturing, storing, distributing, or using any controlled substance (the statute is not limited to crack cocaine). Judge Sessions also sentenced Russell to a three-year period of intensive supervision by the United States Probation Office, which begins immediately.
Russell previously pled guilty to this offense and admitted to allowing his residence, located on Route 100 in Duxbury, to be used by others for selling, storing, and using controlled substances. Specifically, Russell admitted to allowing an out-of-state dealer to stay at his residence and sell crack cocaine there. In exchange, Russell received user-quantities of crack cocaine from the dealer.
Russell was arrested on April 26, 2018. He was released on June 18, 2018 and allowed to participate in a residential drug rehabilitation program. In sentencing Russell to time-served and accepting the parties’ recommendation, Judge Sessions noted that Russell has “responded very well to treatment.”
This statute imposes a maximum sentence of twenty years imprisonment, up to a $500,000 fine, and up to three years of supervised release to begin after any term of imprisonment is served.
U.S. Attorney Christina Nolan stated that this case is part of a renewed commitment by the U.S. Attorney’s Office to deter Vermont residents from assisting larger-scale out-of-state drug dealers by providing them with a local shelter or base camp for their drug trafficking operations in Vermont. Often, the individuals who house the out-of-state dealers are themselves addicts who, as here, receive payment in the form of drugs.
This case was investigated by the Vermont State Police, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Joe Perella. Russell is represented by Michael Desautels, Esq., of the Federal Public Defenders Office.
Doddridge County woman and Harrison County woman admit to methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kelly Wright-Meyers, of West Union, West Virginia, and Ashley Wagner, of Clarksburg, West Virginia, have admitted to their involvement in methamphetamine distribution operation, United States Attorney Bill Powell announced.
Wright-Meyers, age 36, pled guilty to one count of “Distribution of Methamphetamine.” Wright-Meyers admitted to selling methamphetamine in December 2017 in Harrison County.Wagner, age 28, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” Wagner admitted to working with others to distribute methamphetamine from October 2017 to September 2018 in Harrison County and elsewhere.
Wright-Meyers and Wagner each face up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted in the arrests.
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.
U.S. Magistrate Judge Michael John Aloi presided.
Detroit Man Sentenced to Prison for Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Detroit, Michigan, man who trafficked heroin from Detroit into Charleston was sentenced to 41 months in prison, announced United States Attorney Mike Stuart. Stuart commended the investigation conducted by the Charleston Police Department.
Sean Bernard Williams, 46, previously pled guilty to possession with intent to distribute heroin. On November 6, 2014, Williams traveled by bus from Detroit to the Transit Mall in downtown Charleston. Williams then got into a vehicle and hid nearly 150 grams of heroin under his seat. Police investigators stopped Williams’ vehicle after it drove through a stop sign. The investigators received consent to search the vehicle and quickly discovered Williams’ heroin.
“Williams brought 150 grams of heroin with him from Detroit to peddle on our streets,” said United States Attorney Mike Stuart. “Detroit drug dealers have been a problem and we’ve locked up a big number of Detroit drug dealers. This is another and there will be many more if they bring their poisons to the towns in my district.”
The case was prosecuted by Assistant United States Attorney Drew O. Inman. Senior United States District Judge John T. Copenhaver, Jr presided over the plea hearing.
SDWVNews and USAttyStuart
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Detroit Man Sentenced to 40 years for Child Exploitation CrimesRead the Press Release
A Detroit man was sentenced yesterday to 40 years’ imprisonment for convictions of producing child pornography and receiving child pornography online, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Steve Francis, Homeland Security Investigations.
Sentenced was Michael Jonathan Pankey, age 38.
In November 2018, Pankey pleaded guilty to sexual exploitation crimes. According to court records, Pankey admitted that he molested and took sexually explicit photographs of a five year old child. He also admitted to downloading child pornography from the internet. Pankey previously worked at an early childhood center.
“Sexual exploitation is one of the most depraved crimes committed, and this case is especially disturbing given the defendant’s former role as a daycare service provider,” said Special Agent in Charge Steve Francis of HSI Detroit. “This sentence serves as a reminder that HSI is committed to collaborating with its community partners to bring to justice those who exploit children.”
This case was investigated by Special Agents of Homeland Security Investigations. The case is part of the Project Safe Childhood initiative, and was prosecuted by Assistant United States Attorney Maggie Smith.
Des Moines Man Sentenced to 15 Years in Prison for Credit Union RobberyRead the Press Release
DES MOINES, Iowa – On April 23, 2019, Christopher Leon Weckman, age 53, of Des Moines, was sentenced by United States District Court Senior Judge Robert W. Pratt to 180 months (15 years) in prison for the robbery of the Tradesmen Community Credit Union announced United States Attorney Marc Krickbaum. Weckman was convicted by a jury on August 3, 2018.
Evidence presented at trial established that Weckman entered the Tradesmen Community Credit Union, located on Southeast 14th Street in Des Moines, in the late afternoon of September 25, 2017. Weckman, who concealed his face, placed an object on the counter – which he told bank employees and customers was a bomb. Weckman then demanded money from the bank tellers. After fleeing the bank, Weckman was apprehended a short time later by the Des Moines Police Department.
This matter was investigated by the Des Moines Police Department and the Federal Bureau of Investigation Safe Streets Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Defendants Enter Guilty Pleas in Red Lake Heroin Conspiracy That Resulted in the Shooting Deaths of Two IndividualsRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of BRYAN BOARDMAN, a/k/a “Boon,” 25, for his role in a heroin distribution conspiracy that resulted in the shooting deaths of two individuals. FRANKLIN JACKSON, a/k/a “Frankie,” 23, also pleaded guilty on April 18, 2019, to one count of conspiracy to distribute heroin. Both defendants entered their guilty pleas before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota.
According to the defendants’ guilty pleas and documents filed in court, between October 1, 2018, and October 21, 2018, BOARDMAN, JACKSON, and a third co-defendant KRISTOPHER SULLIVAN, 24, conspired with each other to distribute heroin on the Red Lake Indian Reservation. In the early morning hours of October 21, 2018, BOARDMAN, JACKSON, and SULLIVAN met in a trailer on the Red Lake Indian Reservation belonging to JACKSON’s girlfriend. The three defendants made preparations to sell heroin later that day, including contacting potential customers to let them know that heroin was available for sale at the trailer. The defendants’ drug trafficking activities were interrupted at approximately 6:30 a.m. that morning when three armed, masked men broke into the trailer in an apparent armed robbery. BOARDMAN drew a 9 millimeter pistol and fired eight shots, killing two of the intruders. The third intruder was wounded in the leg by the gunfire and fled from the scene.
This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force and the Red Lake Tribal Police Department.
Assistant U.S. Attorneys Jeffrey S. Paulsen and Julie E. Allyn are prosecuting the case.
Defendant Information:
BRYAN BOARDMAN, a/k/a “Boon,” 25
Minneapolis, Minn.
Convicted:
- Conspiracy to distribute heroin, 1 count
- Using and carrying a firearm during a drug trafficking crime, 1 count
FRANKLIN JACKSON, a/k/a “Frankie,” 23
Unknown
Convicted:
- Conspiracy to distribute heroin, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
DEA prepares for prescription drug take back across MontanaRead the Press Release
U.S. Attorney Kurt Alme will join the Drug Enforcement Administration on April 27th for its 17th National Prescription Drug Take Back Day. The biannual event will be held from 10 a.m. to 2 p.m., at 35 collection sites across Montana. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
“This is the single most important step we can take in Montana to prevent more opioid abuse,” said U. S. Attorney Alme. “Prevention is the best cure for addiction,” he said.
“We know that many first-time abusers of pain killers get them from a friend or relative, including from home medicine cabinets,” said DEA Montana Resident Agent in Charge Stacy Zinn-Brittain. “We have learned that pill experimentation has begun with our students in our high schools located in both Billings and Laurel,” Zinn-Brittain said.
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose.
Last October Americans turned in 457 tons (900,000 pounds) of prescription drugs at almost 6,000 sites operated by the DEA and more than 4,800 of its state and local law enforcement partners. Montanans turned in 3,470 pounds of pills at the October event.
The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps, only pills or patches.) Flushing medications down the toilet or throwing them in the trash pose safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.
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DEA and partners hold National Prescription Drug Take Back Day on Saturday April 27Read the Press Release
With robust public participation over the course of 16 prior events, the National Prescription Drug Take Back Day Initiative continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they are vulnerable to misuse, theft or abuse by family members and visitors, including children and teens. In continuation of this effort, DEA and its national, tribal and community partners will hold the 17th National Prescription Drug Take Back Day across the country on Saturday, April 27. The service is free and anonymous.
Now in its ninth year, DEA has collected a total of nearly 11 million pounds (more than 5,400 tons) of expired, unused and unwanted prescription medications through its Take Back Day events. This weekend, approximately 6,000 collection sites manned by nearly 5,000 partner law enforcement agencies will be open 10 a.m. to 2 p.m. local time. The public can find a nearby collection site at www.DEATakeBack.com or by calling 800-882-9539. (DEA cannot accept liquids, needles or sharps.)
"Addiction causes a tremendous amount of pain and suffering, not just for those addicted to drugs, but also for their families and friends," said Acting Administrator Uttam Dhillon. "Helping people keep their loved ones safe by disposing of unwanted, unused, and expired prescription medications is just one of many ways that DEA is working to break the cycle of addiction and overdose deaths plaguing this country."
“We know of many cases where leftover pain pills have led to an opioid addiction,” U.S. Attorney Justin Herdman said. “Properly disposing of these pills is one important step anyone can take to get involved in turning the tide on the opioid epidemic that has caused so much pain here in Ohio.”
Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The majority of prescription drug abusers say they get their drugs free from friends and family, including from the home medicine cabinet. Take Back Day is a unique opportunity for Americans to protect their homes and medicine cabinets from theft and abuse.
National Take Back Day has received enthusiastic public support since its inception in 2010. Last October, the public turned in 457 tons (914,236 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and nearly 4,800 of its local and tribal partners.
DEA and Partners Hold National Prescription Drug Take Back Day SaturdayRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank joined the U.S. Drug Enforcement Administration (DEA) in announcing that DEA will once again conduct one of its most popular community programs: National Prescription Drug Take Back Day. On Saturday, April 27, between 10 a.m. and 2 p.m., the public can dispose of their expired, unused and unwanted prescription medications at over 600 collection sites throughout New England, operated by local law enforcement agencies and other community partners. The service is free of charge, no questions asked and most of these collection sites can be found in the lobby of your local Police Department. To find a collection site near you go to: www.DEATakeBack.com.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that flushing these drugs down the toilet or throwing them in the trash posed potential safety and health hazards.
“DEA has touched a nerve in America with its recent Take Back events, as evidenced by the millions of pounds of pills collected during our previous 16 events,” said DEA Special Agent in Charge Brian D. Boyle. “These events are only made possible through the dedicated work and commitment of our local, state and federal partners, and DEA thanks each and every one of them for their continuous efforts on behalf of the American people.”
“The DEA drug take back is an integral part of controlling the diversion of prescription drugs into the wrong hands and into our ecosystem,” said Halsey B. Frank, U.S. Attorney for the District of Maine. “Maine has been a national leader ever since the program was founded and I hope and expect that we will continue the leadership in 2019.”
Last October, during its 16th Take Back Day, the DEA New England Division participated in the drug take back day and, over the course of four hours, 80,277.68 pounds or 40 tons of expired, unused and unwanted prescription drugs we’re collected at 613 collection sites throughout New England.
The following was the breakdown of collected weights for the six New England states:
CT 4,792.30 lbs.
MA 26,255.58 lbs.
ME 27,156.70 lbs.
NH 11,880 lbs.
RI 4,364 lbs.
VT 5,829 lbs.
TOTAL 80,277.68 lbs.
DEA and Partners Hold National Prescription Drug Take Back DayRead the Press Release
BOSTON – This weekend, the U.S. Drug Enforcement Administration will once again conduct one of its most popular community programs: National Prescription Drug Take Back Day. On Saturday, April 27, between 10 a.m. and 2 p.m., the public can dispose of their expired, unused and unwanted prescription medications at over 600 collection sites throughout New England, operated by local law enforcement agencies and other community partners. The service is free of charge, no questions asked and most of these collection sites can be found in the lobby of your local Police Department. To find a collection site near you go to: www.DEATakeBack.com.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs.
“DEA has touched a nerve in America with its recent Take Back events, as evidenced by the millions of pounds of pills collected during our previous 16 events,” said DEA Special Agent in Charge Brian D. Boyle. “These events are only made possible through the dedicated work and commitment of our local, state and federal partners, and DEA thanks each and every one of them for their continuous efforts on behalf of the American people.”
“I encourage all Massachusetts residents to participate in the DEA’s National Prescription Drug Take Back Day,” said U.S. Attorney Andrew E. Lelling. “Day after day, we see the devastating effects of prescriptions - particularly opioids - that end up in the hands of those who were not prescribed the medications. It’s important to remember that sharing, selling, or stealing prescription pills is illegal, and worse, it can lead to addiction. With over 600 sites across New England, we hope everyone will take advantage of this public safety program and responsibly dispose of their unused prescriptions.”
Last October, during its 16th Take Back Day, the DEA New England Division collected 80,277.68 pounds - or 40 tons - of expired, unused and unwanted prescription drugs at 613 collection sites throughout New England.
The following was the breakdown of collected weights for the six New England states:
CT 4,792.30 lbs.
MA 26,255.58 lbs.
ME 27,156.70 lbs.
NH 11,880 lbs.
RI 4,364 lbs.
VT 5,829 lbs.
TOTAL 80,277.68 lbs.
DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that flushing these drugs down the toilet or throwing them in the trash posed potential safety and health hazards. Since its inception, the initiative has received enthusiastic public support and made great strides in preventing drug misuse and abuse.
DEA Prepares for Prescription Drug Takeback DayRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. will join the DEA on April 27th for its 17th National Prescription Drug Take Back Day. The biannual event will be held from 10 a.m. to 2 p.m., at thousands of collection sites around the country, including here in the (Eastern District of North Carolina. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
“Across the county and here in the Eastern District of North Carolina, we are facing a real and dangerous threat from opioids and other prescription drugs,” said United States Attorney Higdon. “We have unprecedented levels of addiction, frightening numbers of overdoses and an alarming number of deaths because of the over prescription and improper use of these drugs. And this requires each of us to work to solve it. By properly disposing of prescription medication we do not need, we can reduce the risk that these drugs will fall into the wrong hands. Please help us resolve this problem by participating in the national Prescription Drug Take Back Day.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division said, “Addressing the problem of the abuse of controlled pharmaceuticals continues to be one of DEA’s top priorities. One way to address this issue is to encourage the public to properly remove their unwanted, unused and dated prescription medications from their homes. DEA and its law enforcement and community partners are holding its seventeenth take-back event in order to child proof and teen proof homes so that these medications cannot be abused. I invite you to do your part in the midst of this opioid crisis as we strive to make our communities safer.”
Last October Americans turned in 457 tons (900,000 pounds) of prescription drugs at almost 6,000 sites operated by the DEA and more than 4,800 of its state and local law enforcement partners. Overall, in its 16 previous Take Back events, DEA and its partners have taken in over 11 million pounds—more than 5,400 tons—of pills. The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps, only pills or patches.)
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.
Company Agrees to $46 Million Penalty for Falsifying Test ResultsRead the Press Release
ALEXANDRIA, Va. – An Oregon aluminum extrusion manufacturer has agreed to pay $46 million to NASA, the Department of Defense, and others to resolve criminal charges and civil claims relating to a 19-year fraud scheme that included falsifying thousands of certifications for aluminum extrusions provided to hundreds of customers.
“For nearly two decades, SPI and its employees covered up substandard manufacturing processes by brazenly falsifying test results,” said G. Zachary Terwilliger, U.S Attorney for the Eastern District of Virginia. “They then provided the false test results to hundreds of customers across the country, all to increase corporate profits and obtain production-based bonuses. This proposed resolution ensures that the victims of this conduct, including the U.S. military, can replace faulty product put into the supply chain and help recover the costs foisted on taxpayers to investigate this scheme. I want to thank our partners at NASA-OIG, DCIS, and the FBI for their efforts in helping bring much-needed oversight and reform to these companies.”
According to court documents, Hydro Extrusion Portland, Inc., formerly known as Sapa Profiles Inc. (SPI), and its corporate parent, Hydro Extrusion USA, LLC, formerly known as Sapa Extrusions, Inc. (SEI), admitted to providing customers, including U.S. government contractors, with falsified certifications after altering the results of tensile tests designed to ensure the consistency and reliability of aluminum extruded at the companies’ Oregon-based facilities. Tensile testing involves slowly stretching and then ripping apart a sample of the metal using a machine, which then measures the force applied to the sample at each stage of the test.
“For nearly 20 years, Sapa Profiles and Sapa Extrusions falsified critical tests on the aluminum they sold—tests that their customers, including the U.S. government, depended on to ensure the reliability of the aluminum they purchased,” said Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division. “Corporate and personal greed perpetuated this fraud against the government and other private customers, and this resolution holds these companies to account for the harm caused by their scheme.”
According to court documents, SPI has agreed to plead guilty to one count of mail fraud, and SEI has entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed here today charging the company with mail fraud. As part of the plea agreement, SPI has agreed to pay $34.1 million in combined restitution to NASA, the Department of Defense’s Missile Defense Agency (MDA), and commercial customers. SPI has also agreed to forfeit $1.8 million in ill-gotten gains. The plea agreement remains subject to acceptance by the court at a plea hearing currently scheduled for May 13 before U.S. District Judge Liam O’Grady. The DPA with SEI is conditioned on the court’s acceptance and SPI’s satisfaction of the plea agreement’s terms.
“Today’s settlement reflects the Civil Division’s commitment to pursue fraudulent conduct,” said Jody Hunt, Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department will vigorously pursue those who seek to take advantage of American taxpayers and undermine the safety and integrity of critical government programs.”
SPI also agreed to pay $34.6 million as part of a related civil settlement to resolve its liability under the False Claims Act for causing a government contractor to invoice MDA and NASA for aluminum extrusions that did not comply with contract specifications. Government contractors purchased aluminum extrusions for use on rockets for NASA and missiles provided to the MDA. Under the terms of the civil settlement agreement, SPI will satisfy the $34.6 million settlement through credits totaling $23.6 million for its restitution payments as part of the criminal plea agreement, plus additional payments of $6 million to NASA and $5 million to the MDA.
“The results of this investigation are indicative of the law enforcement community’s unwavering commitment to protecting the aerospace supply chain,” said Paul K. Martin, Inspector General of the National Aeronautics and Space Administration (NASA). “I am very proud of the central role the NASA OIG played in unraveling the test falsification scheme.”
According to the companies’ admissions, employees at SPI facilities in the Portland area generally altered the tests in one of two ways. First, from in or about 1996 through in or about 2006, an SPI plant manager led a scheme to make thousands of handwritten alterations to failing test results by changing failing numbers that fell below the minimum required test results to appear to be passing. Those numbers were then typed onto a certification and provided to customers. Second, from in or about 2002 through September 2015, Dennis Balius, the SPI testing lab supervisor, led a scheme to alter tests within SPI’s computerized systems and provide false certifications with the altered results to customers. Balius also instructed employees to violate other testing standards, such as increasing the speed of the testing machines or cutting samples in a manner that did not meet the required specifications. Balius pleaded guilty in July 2017 and was sentenced to three years in prison and ordered to pay over $170,000 in restitution.
“Our partners at NASA and in the military – as well as hundreds of private businesses – put their faith in the integrity of this supplier and the structural integrity of its products,” said Loren ‘Renn’ Cannon, Special Agent in Charge of the FBI’s Portland Field Office. “For almost two decades, this company’s greed violated that trust and put lives at risk. Today’s settlement is an important step to repairing the harm done.”
According to court documents, the SPI employees generally engaged in these practices to conceal the inconsistent quality of aluminum extrusions produced by SPI, avoid the costly scrapping of metal and accompanying production delays, improve SPI’s and SEI’s profits, and receive bonuses that were calculated in part based on a production metric.
“Today’s proposed resolution with SPI exhibits the unending commitment of DCIS and its investigative partners to bring to justice those who seek to defraud the Department of Defense,” said Bryan Denny, Special Agent in Charge for Defense Criminal Investigative Service’s (DCIS) Western Field Office. “Those who purposely disregard requirements imposed to assure the quality of materials provided to our military will be investigated and prosecuted to the fullest extent of the law.”
In addition, the companies admitted that SPI’s customers included U.S. government contractors who in turn provided aluminum extrusions produced by SPI to NASA and the MDA for use in “frangible joints” in rockets provided to NASA and missiles provided to the MDA, respectively. According to court documents, the replacement cost of frangible joints provided to the MDA that included SPI extrusions is approximately $15.3 million, and NASA incurred approximately $9 million in investigative and other costs to determine the impact of SPI extrusions on NASA operations.
As described in the civil settlement agreement, NASA maintains that SPI’s manufacturing processes lacked sufficient controls and produced extrusions unable to pass mechanical properties testing. NASA further maintains that it identified SPI’s out-of-specification extrusions as the cause of two failed rocket launches, which resulted in the loss of important scientific missions. SPI disputes NASA’s positions, and except for those facts admitted to in the DPA and the plea agreement, the claims resolved by the civil settlement are allegations only. There has been no determination of liability. To protect the government supply chain, NASA both suspended SPI from government contracting and proposed SPI for debarment government-wide. The exclusion from government contracting has been effective since September 30, 2015.
A number of significant factors contributed to the Department’s criminal resolution with the companies. Among these, the companies received significant credit for their cooperation with the Department’s investigation and their engagement in extensive remedial measures to address the misconduct, including the termination and severance of employees who were involved, the implementation of state-of-the-art equipment to automate the tensile testing process, company-wide audits at all U.S. tensile labs, increased resources devoted to compliance and revamping internal quality controls and quality audit processes. However, the companies did not receive more significant mitigation credit, either in the penalty or the form of resolution, because the companies did not voluntarily self-disclose the full extent of their misconduct to the Department.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; Joseph H. Hunt, Assistant Attorney General of the Justice Department’s Civil Division; Paul K. Martin, Inspector General of the National Aeronautics and Space Administration (NASA); Loren ‘Renn’ Cannon, Special Agent in Charge of the FBI’s Portland Field Office, and Bryan Denny, Special Agent in Charge for Defense Criminal Investigative Service’s (DCIS) Western Field Office, made the announcement. Assistant U.S. Attorney Ryan S. Faulconer and Trial Attorneys Emily Scruggs and Laura Connelly of the Criminal Division’s Fraud Section are prosecuting the criminal case. Trial Attorneys Allison Cendali and Greg Pearson of the Civil Division’s Fraud Section handled the civil case.
NASA Launch Services Program provided extensive cooperation and assistance throughout the investigation.
Except for those facts admitted to in the DPA and the plea agreement, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-123 and 124.
Chinese Captain Sentenced to Life in Federal Prison in Maritime Drug Smuggling CaseRead the Press Release
SHERMAN, Texas – Two Chinese nationals have been sentenced for maritime drug smuggling, announced Eastern District of Texas U.S. Attorney Joseph D. Brown today.
FeiShang Liang, 52, and KanHua Wu, 51, both of the People’s Republic of China, were found guilty by a jury of maritime drug smuggling violations following a four-day trial before U.S. District Judge Amos L. Mazzant, III on Aug. 2, 2018. Wu was sentenced to 235 months in federal prison on Nov. 13, 2018. Liang was sentenced to Life in federal prison today by Judge Mazzant.
According to information presented in court, on Nov. 24, 2016, while on routine patrol in the Eastern Pacific Ocean, a United States Coast Guard Cutter detected a 120 foot long fishing vessel approximately 1,025 nautical miles west of the Galapagos Islands, Ecuador. The Coast Guard launched its small boat to approach the fishing vessel, at which time the crew aboard the fishing vessel began throwing packages overboard. Afterwards, law enforcement officers recovered 42 packages containing 983 kilograms of cocaine and the seven crew members aboard the fishing vessel were arrested and charged with maritime drug smuggling violations. Testimony at trial revealed that Liang was the ship’s captain and Wu was the engineer. A U.S. Coast Guard helicopter monitoring the vessel caught both Liang and Wu on videotape as they threw over one ton of cocaine outfitted with GPS trackers into the ocean as they were being pursued by the Coast Guard.
“We are committed to dismantling drug trafficking organizations and their entire global enterprise,” said Eastern District of Texas U.S. Attorney Joseph D. Brown. “The work done by the Drug Enforcement Administration and United States Coast Guard in investigating this case has been outstanding in every respect. We will continue to follow the chain of distribution from the street all the way to the source of supply and prosecute everyone responsible.”
This case was investigated by the U.S. Drug Enforcement Administration and the U.S. Coast Guard and prosecuted by Assistant U.S. Attorneys Jay R. Combs and Christopher Eason.
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Carjacking Conviction Results in Forty Years in PrisonRead the Press Release
OKLAHOMA CITY – RUFUS LOU NELSON, JR., 35, has been sentenced to forty years in prison for carjacking and other crimes, announced First Assistant U.S. Attorney Robert J. Troester.
In September 2018, a federal jury heard evidence that on July 5, 2016, Nelson forced a woman at gunpoint to drive from Edmond to the south side of Oklahoma City. While she was driving on Interstate 240 between May Avenue and Pennsylvania Avenue, Nelson shot her in the head. She survived but is now permanently blind. After she got out of the car and onto the median, two Good Samaritans stopped to provide medical assistance and called 911. Oklahoma Highway Patrol officers found Nelson approximately one hour later skulking under the overpass at I-240 and Pennsylvania Avenue.
The jury convicted Nelson of being a felon in possession of ammunition, carjacking, kidnapping, and using and discharging a firearm during a crime of violence.
Today, U.S. District Judge Robin J. Cauthron sentenced Nelson to 480 months—the equivalent of forty years—in the custody of the Bureau of Prisons.
Nelson has been in the custody of the U.S. Marshals Service since his arrest in July 2016.
This case is the result of an investigation by the Oklahoma City Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Oklahoma Highway Patrol, with assistance from the Oklahoma County District Attorney’s Office and the Oklahoma State Bureau of Investigation. Prosecuted by Assistant U.S. Attorneys Mark R. Stoneman and Brandon Hale, the case is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001.
Reference is made to court filings for further information.
Caribou Man Sentenced to 3 years for Failing to Register in Maine as a Sex OffenderRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Stephen G. Olivo, 59, of Hillsborough County, New Hampshire, and Caribou, Maine was sentenced today in U.S. District Court by Judge Lance E. Walker to 3 years in prison and 5 years of supervised release for failing to register as a sex offender. Olivo pleaded guilty on November 6, 2018.
Court records reveal that on about October 2, 1990, the defendant was convicted of aggravated felonious sexual assault in Hillsborough County that required him to register as a sex offender for life. In late 2014 or early 2015, the defendant traveled from Georgia to Maine and lived and worked in Aroostook County but failed to inform the sex offender registry in New Hampshire that he had left New Hampshire. He also never registered in Maine, as required. He was arrested in September 2018.
The investigation was conducted by the United States Marshal’s Service.
Beckley Man Sentenced to Federal Prison for Drug Distribution ChargesRead the Press Release
BECKLEY, W.Va. – A Beckley man who admitted to selling oxycodone and heroin was sentenced today, announced United States Attorney Mike Stuart. Steven Rumbold, 49, of Glen Morgan, Raleigh County, was sentenced to 18 months in federal prison for distributing oxycodone and heroin. Stuart commended the investigative efforts of the Beckley/Raleigh County Drug and Violent Crime Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
“Those who continue to perpetuate the opioid epidemic will be prosecuted,” said United States Attorney Mike Stuart. “West Virginians have already paid too high a price at the hands of drug dealers like Rumbold.”
Rumbold previously admitted that on July 25, 2015, he sold oxycodone to a confidential informant working with the Beckley/Raleigh County Drug and Violent Crime Unit. Rumbold also previously admitted to selling additional quantities of oxycodone and heroin from his home in Glen Morgan to the same informant on at least two different dates. On August 18, 2015, police officers executed a search warrant at defendant’s home and found additional quantities of controlled substances and firearms.
Assistant United States Attorney Timothy D. Boggess handled the prosecution. The sentence was imposed by United States District Judge Irene C. Berger.
SDWVNews and USAttyStuart
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Beaumont Man Sentenced to Seven Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
Gulfport, Miss. – Joseph Daniel Land, 48, of Beaumont, Mississippi, was sentenced today by U.S. District Judge Louis Guirola, Jr. to 84 months in federal prison followed by four years of supervised release, for possessing with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation.
On October 19, 2016, Land sold two (2) ounces of methamphetamine to a confidential source in McLain, Mississippi. In addition, several co-conspirators reported that Land was involved in the distribution of methamphetamine. On July 10, 2018, Land was charged in a federal indictment with possession with intent to distribute methamphetamine. He pled guilty on January 22, 2019.
In total, Land was held responsible for selling over 500 grams of methamphetamine ICE from September 2016 through April 2017, based on his sale to a source and information learned during the investigation.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John Meynardie.
Augusta Man Pleads Guilty to Firearms ChargeRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Ryan D. Merrill, 39, of Augusta, Maine, pleaded guilty today in U.S. District Court to possessing an unregistered silencer. Merrill was indicted in October 2018.
According to court records, on July 17, 2018, officers with the Augusta, Maine police department (APD) responded to a complaint of gunshots in a residential area. Merrill had been firing a .22 caliber rifle at a fox and at small propane tanks behind his home. Officers discovered that Merrill had modified an automotive oil filter and attached it to the muzzle of the rifle using a special adapter in order to suppress the sound of rounds he fired. Merrill had not registered the silencer in the National Firearms Registration and Transfer Record and he knew that the possession of the silencer was prohibited by federal law.
The case was investigated by Augusta Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proved 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.
Atlanta sex trafficker sentenced to 21 yearsRead the Press Release
ATLANTA - Quintavious Obie has been sentenced to federal prison for engaging in sex trafficking and witness tampering. The defendant was originally indicted for sex trafficking in 2018 but continued to harass and intimidate victims and was charged with witness tampering as well.
“Obie lured his victims into prostitution and after he was arrested continued to harass and intimidate them,” said U.S. Attorney Byung J. “BJay” Pak. “Sex trafficking exploits and traumatizes some of the most vulnerable members of our society. We are sending a clear message to those seeking to engage in this type of criminal activity: you will be caught and prosecuted.”
“This defendant showed a complete disregard for the women he entrapped into sex trafficking,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our law enforcement partners made this case a priority and were successful in getting Obie off our community’s streets, despite his efforts to circumvent the charges against him by intimidating his victims.”
“Human trafficking is a form of modern-day slavery, and the threats and abuse inflicted on these particular victims only adds to the heinous nature of the crime,” said Special Agent in Charge of Homeland Security Investigations Atlanta Nick S. Annan. “HSI is committed to working with our law enforcement partners to find and prosecute criminal traffickers while ensuring the victims of this terrible crime are rescued and get the care they need.”
According to U.S. Attorney Pak, the charges and other information presented in court: Quintavious Obie lured young women from rural areas in South Carolina to Atlanta with promises of a lucrative lifestyle. However, once they arrived in Atlanta, they were forced into a life of prostitution through mental and physical abuse. The victims were forced to engage in prostitution and to turn over to Obie all of the money they received. His victims were not allowed to go anywhere without his knowledge nor see anyone unless they were a paying client. Any deviation from his rules brought severe punishment.
Obie was indicted for sex trafficking in January 2018. However, this did not stop Obie from continuing his pattern of harassment and victimization. Specifically, from January 2018 to April 2018, Obie had others call and text his victims to have them retract their statements to law enforcement in an effort have his case dismissed. As a result, he was also charged with witness tampering.
Quintavious Obie, a/k/a Swayzii, a/k/a Shank, 32, of Atlanta, Georgia, was sentenced by U.S. District Judge Orinda D. Evans to 21 years, six months in prison to be followed by 10 years of supervised release, a special assessment of $300, and ordered to pay restitution in the amount of $7,500 per victim. Obie was convicted on these charges after pleading guilty on January 7, 2019.
This case was investigated by the FBI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorneys Jennifer Keen and Stephanie Gabay-Smith prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Angola Man Sentenced to 93 Months in PrisonRead the Press Release
FORT WAYNE – Johnathan Ladig, 33 years old, of Angola, Indiana, was sentenced by U.S. District Court Chief Judge Theresa L. Springmann after pleading guilty to selling firearms to a felon and transporting stolen firearms in interstate commerce, announced U.S. Attorney Kirsch.
Ladig was sentenced to 93 months in prison followed by 1 year of supervised release.
According to documents in the case, in December 2017, Ladig sold 15 stolen firearms to a confidential informant, and based upon recorded conversations, Ladig believed this individual to be a convicted felon who planned to sell the stolen firearms in Chicago. Ladig obtained the firearms by breaking into a home in Michigan, and he brought the firearms to Indiana for the sale.
This investigation was conducted by the ATF with the assistance of the Hillside County, Michigan, Sheriff’s Department and the Indiana State Police. The case was prosecuted by Assistant U. S. Attorney Anthony W. Geller.
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Aluminum Extrusion Manufacturer Agrees to Pay over $46 Million for Defrauding Customers, Including the United States, in Connection with Test Result Falsification SchemeRead the Press Release
An Oregon aluminum extrusion manufacturer has agreed to pay $46 million to NASA, the Department of Defense, and others to resolve criminal charges and civil claims relating to a 19-year fraud scheme that included falsifying thousands of certifications for aluminum extrusions provided to hundreds of customers.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, Inspector General Paul K. Martin of the NASA Office of Inspector General, Special Agent in Charge Loren ‘Renn’ Cannon of the FBI’s Portland Field Office and Special Agent in Charge Bryan Denny of the Defense Criminal Investigative Service’s (DCIS) Western Field Office made the announcement.
According to court documents, Hydro Extrusion Portland, Inc., formerly known as Sapa Profiles Inc. (SPI), and its corporate parent, Hydro Extrusion USA, LLC, formerly known as Sapa Extrusions Inc. (SEI), admitted to providing customers, including U.S. government contractors, with falsified certifications after altering the results of tensile tests designed to ensure the consistency and reliability of aluminum extruded at the companies’ Oregon-based facilities. Tensile testing involves slowly stretching and then ripping apart a sample of the metal using a machine, which then measures the force applied to the sample at each stage of the test.
“For nearly 20 years, Sapa Profiles and Sapa Extrusions falsified critical tests on the aluminum they sold — tests that their customers, including the U.S. government, depended on to ensure the reliability of the aluminum they purchased,” said Assistant Attorney General Benczkowski of the Department of Justice’s Criminal Division. “Corporate and personal greed perpetuated this fraud against the government and other private customers, and this resolution holds these companies accountable for the harm caused by their scheme.”
“Today’s settlement reflects the Civil Division’s commitment to pursue fraudulent conduct,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department will vigorously pursue those who seek to take advantage of American taxpayers and undermine the safety and integrity of critical government programs.”
“For nearly two decades, SPI and its employees covered up substandard manufacturing processes by brazenly falsifying test results,” said U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia. “They then provided the false test results to hundreds of customers across the country, all to increase corporate profits and obtain production-based bonuses. This proposed resolution ensures that the victims of this conduct, including the U.S. military, can replace faulty product put into the supply chain and help recover the costs foisted on taxpayers to investigate this scheme. I want to thank our partners at NASA-OIG, DCIS, and the FBI for their efforts in helping bring much-needed oversight and reform to these companies.”
“The results of this investigation are indicative of the law enforcement community’s unwavering commitment to protecting the aerospace supply chain,” said NASA Inspector General Paul K. Martin. “I am very proud of the central role the NASA OIG played in unraveling the test falsification scheme.”
“Our partners at NASA and in the military – as well as hundreds of private businesses – put their faith in the integrity of this supplier and the structural integrity of its products,” said Special Agent in Charge Loren ‘Renn’ Cannon of the FBI’s Portland Field Office. “For almost two decades, this company’s greed violated that trust. Today’s proposed resolution is an important step to repairing the harm done.”
“Today’s proposed resolution with SPI exhibits the unending commitment of DCIS and its investigative partners to bring to justice those who seek to defraud the Department of Defense,” said Special Agent in Charge Bryan Denny of the DCIS Western Field Office. “Those who purposely disregard requirements imposed to assure the quality of materials provided to our military will be investigated and prosecuted to the fullest extent of the law.”
According to court documents, SPI has agreed to plead guilty to one count of mail fraud, and SEI has entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today charging the company with mail fraud. As part of the plea agreement, SPI has agreed to pay $34.1 million in combined restitution to NASA, the Department of Defense’s Missile Defense Agency (MDA), and commercial customers. SPI has also agreed to forfeit $1.8 million in ill-gotten gains. The plea agreement remains subject to acceptance by the court at a plea hearing currently scheduled for May 13, 2019, before U.S. District Judge Liam O’Grady. The DPA with SEI is conditioned on the court’s acceptance and SPI’s satisfaction of the plea agreement’s terms.
SPI also agreed to pay $34.6 million as part of a related civil settlement to resolve its liability under the False Claims Act for causing a government contractor to invoice MDA and NASA for aluminum extrusions that did not comply with contract specifications. Government contractors purchased aluminum extrusions for use on rockets for NASA and missiles provided to the MDA. Under the terms of the civil settlement agreement, SPI will satisfy the $34.6 million settlement through credits totaling $23.6 million for its restitution payments as part of the criminal plea agreement, plus additional payments of $6 million to NASA and $5 million to the MDA.
According to the companies’ admissions, employees at SPI facilities in the Portland area generally altered the tests in one of two ways. First, from in or about 1996 through in or about 2006, an SPI plant manager led a scheme to make thousands of handwritten alterations to failing test results by changing failing numbers that fell below the minimum required test results to appear to be passing. Those numbers were then typed onto a certification and provided to customers. Second, from in or about 2002 through September 2015, Dennis Balius, the SPI testing lab supervisor, led a scheme to alter tests within SPI’s computerized systems and provide false certifications with the altered results to customers. Balius also instructed employees to violate other testing standards, such as increasing the speed of the testing machines or cutting samples in a manner that did not meet the required specifications. Balius pleaded guilty in July 2017 and was sentenced to three years in prison and ordered to pay over $170,000 in restitution.
According to court documents, the SPI employees generally engaged in these practices to conceal the inconsistent quality of aluminum extrusions produced by SPI, avoid the costly scrapping of metal and accompanying production delays, improve SPI’s and SEI’s profits, and receive bonuses that were calculated in part based on a production metric.
In addition, the companies admitted that SPI’s customers included U.S. government contractors who in turn provided aluminum extrusions produced by SPI to NASA and the MDA for use in “frangible joints” in rockets provided to NASA and missiles provided to the MDA, respectively. According to court documents, the replacement cost of frangible joints provided to the MDA that included SPI extrusions is approximately $15.3 million, and NASA incurred approximately $9 million in investigative and other costs to determine the impact of SPI extrusions on NASA operations.
As described in the civil settlement agreement, NASA maintains that SPI’s manufacturing processes lacked sufficient controls and produced extrusions unable to pass mechanical properties testing. NASA further maintains that it identified SPI’s out-of-specification extrusions as the cause of two failed rocket launches, which resulted in the loss of important scientific missions. SPI disputes NASA’s positions, and except for those facts admitted to in the DPA and the plea agreement, the claims resolved by the civil settlement are allegations only. There has been no determination of liability. To protect the government supply chain, NASA both suspended SPI from government contracting and proposed SPI for debarment government-wide. The exclusion from government contracting has been effective since Sept. 30, 2015.
A number of significant factors contributed to the Department’s criminal resolution with the companies. Among these, the companies received significant credit for their cooperation with the Department’s investigation and their engagement in extensive remedial measures to address the misconduct, including the termination and severance of employees who were involved, the implementation of state-of-the-art equipment to automate the tensile testing process, company-wide audits at all U.S. tensile labs, increased resources devoted to compliance and revamping internal quality controls and quality audit processes. However, the companies did not receive more significant mitigation credit, either in the penalty or the form of resolution, because the companies did not voluntarily self-disclose the full extent of their misconduct to the Department.
This case was investigated by NASA Office of Inspector General, FBI’s Portland Field Office, and DCIS. The NASA Launch Services Program and Office of the General Counsel Acquisition Integrity Program provided extensive cooperation and assistance throughout the investigation.
Trial Attorneys Emily Scruggs and Laura Connelly of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ryan S. Faulconer are prosecuting the criminal case, with previous assistance from former Trial Attorneys Thomas Hall and Jennifer Ballantyne. Trial Attorneys Allison Cendali and Greg Pearson of the Civil Division’s Fraud Section handled the civil case.
If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-vns/case/SAPA or call (888) 549-3945.
A Washington State Man Was Sentenced to 55 years on Child Exploitation ChargesRead the Press Release
A man from Shoreline, Washington was sentenced yesterday to 55 years’ imprisonment for his role in an international child pornography ring, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Timothy Slater of the Federal Bureau of Investigation, Detroit Division.
“The way that these offenders worked together to manipulate innocent girls for their own sexual gratification is truly horrific. And, the way that this defendant in particular extorted these children is especially heinous,” said United States Attorney Schneider. “Parents, please speak with your children about sextortion and cyberbullying so we can keep all of our children safe.”
Sentenced was Michael Berenson, age 30. In addition to his prison sentence and term of supervised release, Berenson was ordered to pay 5,000 in restitution to each of the identified victims, reaching a total of over 80,000 dollars. United States District Judge Judith Levy of the Eastern District of Michigan imposed the sentence.
According to court records, from at least January 2012 to November 2014, Berenson was part of a group of individuals that worked together, using the Internet, to entice minor females to produce child pornography via web camera on an unmonitored chatroom-based website. The men recruited the victims from common social media platforms by pretending to be teenage boys interested in chatting with the girls in real time. Once the victims arrived in the chatrooms, the group—all pretending to be teenagers—worked together to build trust and convince the children to engage in sexually explicit conduct on web cameras. Group members then recorded that activity. The girls were unaware that the men were making recordings. Berenson is the 25th defendant to be sentenced here in the Eastern District of Michigan for conspiring to exploit children on this unmonitored website.
Berenson participated in this group from its inception in 2012 until this particular group ceased activity. Berenson however, remained active, targeting minors, directing them to engage in sexual acts, recording such acts and blackmailing the minors until the execution of a search warrant at his residence on May 10, 2017. Berenson also encouraged girls to self-harm and recorded them doing so.
Berenson admitted to victimizing over 1,000 minor girls over the course of the last 10 years. Some of the girls were as young as nine years old.
To date, a forensic examination of his devices recovered over 9,600 videos and images of child pornography and 105,347 child exploitive videos and images. Berenson recorded over 1,128 hours of videos of child pornography and over 3,000 hours of child exploitive conduct. Sixteen parents and victims were present for the sentencing hearing and made statements to the Court. Among those present was Carol Todd, the mother of Amanda Todd who died by suicide in October of 2012. A website dedicated to Amanda Todd can be found at http://www.amandatoddlegacy.org/. The FBI has so-far identified approximately 20 victims in the United States.
Assistant United States Attorneys April Russo and Kevin Mulcahy of the Eastern District of Michigan prosecuted the case. The FBI’s Detroit Field Office and Southeast Michigan Trafficking and Exploitation Crimes task force investigated the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
22 April 2019
Yacht Owner Pleads Guilty to Child Pornography for Secretly Recording Nude Videos of MinorsRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that William Richard Hilliard, Jr., 49, of Cherryville, N.C., pleaded guilty to child pornography charges for secretly recording nude videos of underage females aboard his yacht. U.S. Magistrate Judge W. Carleton Metcalf presided over Hilliard’s guilty plea.
According to the indictment and filed plea documents, Hilliard was arrested on June 11, 2018, by Myrtle Beach, South Carolina law enforcement officers on charges of video voyeurism. Hilliard was the owner of a yacht called “Yachts O’ Trouble,” and he had been discovered secretly recording nude videos of unsuspecting females aboard his yacht, including minor and adult guests. Court records show that as a result of the events surrounding his arrest, the FBI coordinated an extensive multi-state and multi-agency investigation.
As Hilliard admitted in court today, law enforcement discovered that, over the course of eight to ten years, Hilliard had secretly produced multiple secret recordings of at least 16 child victims at various locations in North and South Carolina, including aboard his yacht, in his homes, in various hotel rooms, and elsewhere. Court records also show that, at times, Hilliard produced secret recordings of victims he had hired as babysitters for his young children, and used multiple hidden devices to record his victims from different angles while they were using the shower and changing clothes. Some of the victims were as young as five years old.
Hilliard pleaded guilty to production of child pornography, which carries a mandatory minimum sentence of 15 years and a maximum of 30 years in prison and a $250,000 fine, and possession of child pornography, which carries a maximum prison term of 20 years and a $250,000 fine.
In making today’s announcement, U.S. Attorney Murray thanked the FBI’s Charlotte Division, the Myrtle Beach Police Department, the Horry County Police Department, and the Cleveland County Sheriff’s Office for their investigation of this case with assistance from FBI Knoxville, FBI Birmingham, Homeland Security Investigations, the Cherryville Police Department and the Gastonia Police Department. The U.S. Attorney’s Office in Asheville is in charge of the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Wood River Man Charged with Stealing 135 FirearmsRead the Press Release
A federal grand jury has returned an indictment against Bradley N. Boswell, 30, of Wood River, Illinois, charging Boswell with stealing firearms from a federal firearms licensee, United States Attorney for the Southern District of Illinois Steven D. Weinhoeft, announced today. The charges allege that in early February 2019, Boswell stole 135 firearms from Benbow City Sports, which is a licensed federal firearms dealer. The indictment also charged Boswell with possessing the same firearms after being convicted of a felony.
Each charge carries a maximum penalty of 10 years in prison, up to three years of supervised release, and a fine up to $250,000.
Boswell appeared in United States District Court in East St. Louis on April 18, 2019, for his initial appearance and arraignment on the indictment. At the conclusion of his court appearance, Boswell was ordered to remain in the custody of the United States Marshal, pending a detention hearing, which is set for April 23, 2019.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
This prosecution is the result of a collaborative investigation by the Wood River Police Department and the Bureau of Alcohol, Tobacco, Firearms, & Explosives.
Wisconsin Resident Waheba Dais Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
A Wisconsin woman pleaded guilty today to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Assistant Attorney General for National Security John C. Demers, U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin and Acting Special Agent in Charge Michelle Sutphin of the FBI's Milwaukee Field Office announced the plea.
Waheba Issa Dais, 46, pleaded guilty to one count of attempting to provide material support to ISIS, based upon her conduct in support of the terrorist organization in 2018.
According to admissions made in connection with her plea, Dais used hacked Facebook accounts in order to support ISIS. Using these accounts, she pledged her allegiance to ISIS on numerous occasions, communicated with and encouraged other ISIS supporters who described their plans to conduct attacks, disseminated information about explosives and biological weapons, and attempted to recruit new members to ISIS’s cause. For example, Dais posted videos providing step-by-step instructions on how to make an explosive belt and TNT, and she provided a detailed recipe for the poison Ricin. Dais also maintained encrypted social-media channels, where she posted messages encouraging ISIS supporters who could not travel to ISIS-controlled lands to conduct terrorist attacks in their home countries. Through those encrypted channels, she also provided detailed information about explosives, guns, attack planning, and target selection.
Dais faces a maximum term of imprisonment of 20 years, a maximum life term of supervised release, and a maximum fine of $250,000. Her sentencing is set for Sept. 12, 2019 before Judge Pamela Pepper.
This conviction is the result of an extensive investigation by the Federal Bureau of Investigation’s Milwaukee Field Office. The case is being prosecuted by Assistant United States Attorney Rebecca Taibleson and Trial Attorney Jennifer Burke of the National Security Division.
Woman Facing Federal Drug Trafficking Charge Arising Out of DEA Seizure of 18 Pounds of Fentanyl in New MexicoRead the Press Release
WOMAN FACING FEDERAL DRUG TRAFFICKING CHARGE ARISING
OUT OF DEA SEIZURE OF 18 POUNDS OF FENTANYL IN NEW MEXICO
ALBUQUERQUE – A U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Daniela Cota-Guitimea, with a fentanyl trafficking offense. The charge arises from a DEA seizure of approximately 18.144 pounds of fentanyl in Albuquerque on April 16, 2019. Cota-Guitimea was remanded into custody pending trial based on judicial findings that she poses a risk of flight and a danger to the community.
The DEA arrested Cota-Guitimea, 21, a U.S. citizen who resides in Mexico, after seizing approximately 8.10 gross kilograms (18.144 pounds) of fentanyl from Cota-Guitimea’s luggage during an interdiction investigation in Albuquerque.
The penalty for a conviction on the offense charged in the criminal complaint is a statutory minimum penalty of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the DEA, and Assistant U.S. Attorney Matthew T. Nelson is prosecuting the case.
Valley View, Texas Woman Sentenced to 12 Months Probation, $1,000 Restitution for Theft from Gaming Establishments on Indian LandsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jeannie Irene Stegner, age 52, of Valley View, Texas, was sentenced to 1 year probation and ordered to pay $1000.00 in restitution for Theft From Gaming Establishments On Indian Lands, in violation of Title 18, United States Code, Section 1167(a). The charges arose from an investigation by the Chickasaw Nation Lighthorse Police and the Bureau of Indian Affairs.
The Information alleged that on June 9, 2018, in the Eastern District of Oklahoma, the defendant embezzled, abstracted, purloined, willfully misapplied, and took and carried away property of a value of $1,000.00 or less belonging to the Chickasaw Nation WinStar World Casino and Resort, an Indian gaming establishment operated by the Chickasaw Nation, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Edward Snow represented the United States.
U.S. Department of Justice Remains Focused on Purchase and Pennyrile Regions with Addition of New ProsecutorRead the Press Release
PADUCAH, Ky. – United States Attorney Russell M. Coleman today announced the addition of Raymond Dykie McGee as a Special Assistant United States Attorney in the U.S. Attorney’s Paducah Branch Office, another example of the U.S. Department of Justice’s commitment to the Purchase and Pennyrile Regions.
“We are blessed as an office and federal law enforcement community to continue our longstanding relationship with the McCracken Commonwealth’s Attorney’s Office by adding Mr. McGee to our ranks,” said U.S. Attorney Russell Coleman. “I am committed to serving all 53 counties of our district, from Oldham County to our River Counties and his talent and experience is welcomed.”
Mr. McGee joins three full-time Assistant United States Attorneys and a legal assistant in the Paducah branch office, making it the most heavily-staffed since it was established in 2001. The addition of Mr. McGee will continue to strengthen working relationships with state prosecutors and local law enforcement agencies in the region while he continues to prosecute felony cases in state court as First Assistant Commonwealth’s Attorney for the 2nd Judicial Circuit (McCracken County).
The allocation of prosecutorial resources in the Paducah Branch Office is closely-tied to robust activity by the Bureau of Alcohol, Tobacco, and Firearms (ATF) and an increased federal law enforcement presence which includes the recent announcement by the U.S. Drug Enforcement Administration (DEA) of the first ever opening of an office in Paducah.
McGee joins Assistant United States Attorney Seth Hancock, Branch Chief of the Paducah Office and Assistant United States Attorneys Madison Sewell and Leigh Ann Dycus in prosecuting federal cases in United States District Courts located in Paducah, Owensboro, and Bowling Green.
U.s. Citizen Residing in Honduras Extradited to Face Federal Charges in New MexicoRead the Press Release
Charges Arise Out of Scheme to Defraud Bank in Deming, N.M.
ALBUQUERQUE – A U.S. citizen residing in Honduras has been extradited to the United States, and transferred to the District of New Mexico, where he stands accused of bank fraud, wire fraud, and conspiracy charges arising out of a scheme to defraud a bank in southern New Mexico, as well as other financial institutions and individual investors.
The Honduras Transnational Criminal Investigative Unit (TCIU) of Homeland Security Investigations (HSI) arrested Bruce Beckner, 56, on a federal indictment on March 7, 2019, at the San Pedro Sula airport in Honduras. At the time of his arrest, Beckner had been a resident of Roatan, Honduras, for several years. Beckner remained incarcerated in Honduras until Honduras approved his extradition on April 11, 2019, and he was transferred into U.S. custody on April 16, 2019.
Beckner was arrested by HSI Albuquerque on the night of April 16, 2019, at the Albuquerque International Sunport, after he was extradited and flown in from Tegucigalpa under escort by HSI Honduras. Beckner made his initial appearance in federal court in Albuquerque, N.M., on April 17, 2019.
This morning, Beckner was arraigned on the indictment, and entered a not guilty plea. During this morning’s proceedings, Beckner waived his right to a detention hearing and was ordered detained pending trial.
The indictment alleges that, from 2000 to 2011, Beckner and a co-defendant, Arthur Herlihy, 70, of Santa Fe, N.M., engaged in a fraudulent scheme to develop a business plan and secure financing to renovate a truck stop in Deming. It further alleges that Beckner obtained business loans by making misrepresentations; made false statements to induce investors to invest in the truck stop; and diverted substantial portions of those funds for his personal benefit.
Herlihy pled guilty in Feb. 2017, to making a false statement to a bank on a loan document, and was sentenced in Aug. 2017
If convicted on the charges in the indictment, Beckner faces the following maximum statutory penalties: 30 years of imprisonment on the bank fraud charge; 20 years of imprisonment on the wire fraud charge; and a maximum of 30 years of imprisonment on the conspiracy charge. Charges in indictments are only accusations, and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The case was investigated by Homeland Security Investigations, IRS Criminal Investigation, and the Special Investigations Division of the New Mexico Office of the Attorney General. Assistant U.S. Attorney Sean J. Sullivan is prosecuting the case. The U.S. Department of Justice’s Office of International Affairs, HSI Honduras TCIU, and HSI ICE Country Attaché in Honduras assisted with the extradition.