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Wednesday 13 March 2019
Georgia couple pleaded guilty to conspiracy to defraud VA and SSARead the Press Release
ATLANTA - Kinsley Kilpatrick and Tracie Jeanne Kilpatrick have pleaded guilty to conspiracy to commit mail fraud by defrauding the Department of Veteran’s Affairs (“VA”) and the Social Security Administration (“SSA”) out of benefit monies by feigning disabilities.
“These two defendants received over $60,000 a year in benefits to which they were not entitled,” said U.S. Attorney Byung J. “BJay” Pak. “Additionally, the VA purchased a brand new Jeep that they would not have received but for their fraud. These programs rely on the honesty of the participants, and those who take advantage will be prosecuted for their greed.”
David Spilker, Special Agent in Charge, Southeast Field Office, VA OIG, stated, “The Kilpatricks’ deceitful actions stole VA resources from a program designed to help disabled veterans obtain compensation for injuries incurred while in the military. VA OIG’s continued oversight safeguards the integrity of VA’s programs.”
“The Social Security Office of the Inspector General is committed to protecting Social Security benefits and pursuing individuals whose deceitful and illegal actions target programs that exist for those who truly need them,” said Wayne R. Warren, Acting Special Agent-in-Charge of the SSA OIG Atlanta Field Division. “Therefore, we will continue to work with our law enforcement partners to investigate and prosecute individuals who try to defraud the SSA.”
According to U.S. Attorney Pak, the charges and other information presented in court: In 2015, Kinsley Kilpatrick, who received VA disability benefits, applied for and received additional VA disability benefits based on his fraudulent claim that he was restricted to a wheelchair and had 100 percent loss of use of arms and legs. In support of his application, Kinsley and Tracie Kilpatrick completed false paperwork and falsely represented his medical condition at medical appointments. In January 2016, based on this false information, the VA approved his application, appointed Tracie Kilpatrick to be his caretaker, and began paying him an additional nearly $5,000 per month in VA benefits.
Meanwhile, in 2016, the defendants also falsely claimed to SSA that Tracie Kilpatrick was completely disabled from a seizure disorder. In the paperwork submitted to the SSA, Kinsley Kilpatrick claimed, that he had to provide assistance to his wife for basic activities like bathing, toileting, and dressing. Tracie Kilpatrick submitted paperwork asserting that she was unable to stand, walk, lift, carry, or drive. Based on these fraudulent assertions, the SSA concluded that Tracie Kilpatrick was disabled and paid her disability benefits. In truth, neither Kinsley nor Tracie Kilpatrick were as limited as they claimed and they were not entitled to the benefits they received based on their fraudulent misrepresentations. In fact, Kinsley Kilpatrick was not restricted to a wheelchair, and had full use of his arms and legs. Tracie Kilpatrick had no serious functional limitations. During the investigation, investigators video recorded Kinsley Kilpatrick doing back flips on a trampoline, and playing and coaching in a kickball league. During surveillance, Tracie Kilpatrick was seen standing, walking, bending, driving, lifting, and carrying heavy items.
Kinsley Kilpatrick, 39, and Tracie Kilpatrick, 45, both of Powder Springs, Georgia, will be sentenced on June 6, 2019, at 10:00 a.m., before U.S. District Judge Leigh Martin May. Additionally, the defendants agreed to forfeit the 2017 Jeep Cherokee that they purchased with VA funds.
This case is being investigated by the Department of Veterans Affairs - Office of Inspector General and Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman is prosecuting 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.
Former supervisor at Richwood Correctional Center pleads guilty to violating civil rights of five inmatesRead the Press Release
MONROE, La. – The Justice Department today announced that defendant Christopher Loring, a former officer at the Richwood Correctional Center, pleaded guilty in federal court today for his role in a conspiracy to cover up the physical assault of five inmates by officers. Loring, 36, of West Monroe, Louisiana, pleaded guilty to conspiring with other officers to falsify documents with intent to obstruct and influence the investigation of a matter within federal jurisdiction. Assistant Attorney General Eric Dreiband for the Civil Rights Division and U.S. Attorney for the Western District of Louisiana David C. Joseph made the announcement.
“Abuse of prisoners is illegal and tarnishes the reputation of those correctional officers who work hard every day to perform their duties with distinction and professionalism,” Joseph stated. “To maintain the fairness and integrity of the American justice system, my office will hold accountable any who violate the civil rights of those under their custody.”
“The blatant abuse of power and the obstruction of civil rights will not be tolerated by the Department,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to protect the victims of these abuses and prosecute those who violate their civil rights.”
According to his guilty plea, Loring worked as a correctional officer at the Richwood Correctional Center in Richwood, Louisiana, where on Oct. 30, 2016 he and other officers abused inmates and then conspired to cover it up. According to Mr. Loring, he failed to intervene when the other officers sprayed a chemical agent directly in the faces and eyes of five inmates while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Following that abuse, Mr. Loring and the other officers conspired to hide their conduct by submitting false reports.
Roderick Douglas, a former supervisor at the Richwood Correctional Center, pleaded guilty in federal court on Jan. 31 for his role in the conspiracy to violate the civil rights of five inmates. Sentencing for Douglas is scheduled for June 5, 2019.
The count of conviction carries a maximum penalty of five years in prison and a criminal fine of up to $250,000. Mr. Loring is scheduled to be sentenced on July 3, 2019 by U.S. District Judge Terry A. Doughty of the Western District of Louisiana, who accepted the plea.
Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office of the Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, prosecuted the case. The Monroe Division of the FBI investigated the case.
Former Teacher Sentenced for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A former Lebanon, Mo., teacher was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Brandon Hileman, 26, of Lebanon, Mo., was sentenced by U.S. District Judge M. Douglas Harpool to eight years in federal prison without parole.
Hileman, formerly a math teacher at Joel E. Barber Junior High School in Lebanon, pleaded guilty on Nov. 14, 2018. Hileman admitted that he received child pornography over the Internet between Jan. 1 and Sept. 29, 2017.
The investigation began when a Lebanon police detective was notified that Hileman had uploaded two videos of child pornography to his Google Drive account. Law enforcement officers executed a search warrant at Hileman’s residence on Sept. 29, 2017, and seized computers, an iPad, cell phones and digital storage devices. Investigators examined the devices and found 886 images and 46 videos depicting child pornography, along with nearly 500 depictions of children engaged in the act of urination or defecation. Almost 600 images of a juvenile with whom Hileman was acquainted were also located, at least two of which were inappropriate (although not pornographic).
Hileman told investigators he began viewing child pornography as a teenager.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Lebanon, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Supervisor at Louisiana Correctional Facility Pleads Guilty to Violating Civil Rights of Five InmatesRead the Press Release
The Justice Department today announced that defendant Christopher Loring, a former officer at the Richwood Correctional Center, pleaded guilty in federal court today for his role in a conspiracy to cover up the physical assault of five inmates by officers. Loring, 36, of West Monroe, Louisiana, pleaded guilty to conspiring with other officers to falsify documents with intent to obstruct and influence the investigation of a matter within federal jurisdiction. Assistant Attorney General Eric Dreiband for the Civil Rights Division and U.S. Attorney for the Western District of Louisiana David C. Joseph made the announcement.
“The blatant abuse of power and the obstruction of civil rights will not be tolerated by the Department,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to protect the victims of these abuses and prosecute those who violate their civil rights.”
“Abuse of prisoners is illegal and tarnishes the reputation of those correctional officers who work hard every day to perform their duties with distinction and professionalism,” U.S. Attorney Joseph stated. “To maintain the fairness and integrity of the American justice system, my office will hold accountable any who violate the civil rights of those under their custody.”
According to his guilty plea, Loring worked as a correctional officer at the Richwood Correctional Center in Richwood, Louisiana, where on Oct. 30, 2016 he and other officers abused inmates and then conspired to cover it up. According to Mr. Loring, he failed to intervene when the other officers sprayed a chemical agent directly in the faces and eyes of five inmates while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Following that abuse, Mr. Loring and the other officers conspired to hide their conduct by submitting false reports.
Roderick Douglas, a former supervisor at the Richwood Correctional Center, pleaded guilty in federal court on Jan. 31 for his role in the conspiracy to violate the civil rights of five inmates. Sentencing for Douglas is scheduled for June 5, 2019.
The count of conviction carries a maximum penalty of five years in prison and a criminal fine of up to $250,000. Mr. Loring is scheduled to be sentenced on July 3, 2019 by U.S. District Judge Terry A. Doughty of the Western District of Louisiana, who accepted the plea.
Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office of the Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, prosecuted the case. The Monroe Division of the FBI investigated the case.
Former Kansas EMT Sentenced for Stealing Morphine from VialsRead the Press Release
WICHITA, KAN. – A former EMT in Jackson County, Kan., was sentenced Tuesday to five years on federal probation for stealing morphine from vials, U.S. Attorney Stephen McAllister said. One condition of his release is he not engage in any occupation that would give him access to controlled substances without prior approval from his probation officer. He also must complete an approved substance abuse program.
Colby W. VanWagoner, 33, Mayetta, Kan., pleaded guilty to one count of obtaining a controlled substance by deception and one count of making a false statement during an investigation.
The crimes took place while VanWagoner was working for the Jackson County Emergency Medical Service in Holton, Kan. In his plea, VanWagoner admitted he tampered with vials of morphine sulfate. He replaced morphine with saline solution and put the vials back into narcotic boxes on ambulances and in office stocks. Tests showed the concentration of morphine in vials that had been tampered with was low as 1 percent or less. The concentration of morphine should have been 100 percent.
McAllister commended the Food and Drug Administration – Office of Criminal Investigations and Assistant U.S. Attorney Debra Barnett for their work on the case.
Former Henry County Bank Executive Sentenced to Prison for Bank FraudRead the Press Release
Jackson, TN – A former bank executive has been sentenced to twelve months and one day in federal prison for bank fraud. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, from May 16, 2005 through October 7, 2015, Robert Daniel Newcomb, Jr., was employed in Paris, Tennessee, as a vice president/branch manager at the FDIC-insured bank known as FirstBank, Bartlett, Tennessee. James Curtis Hobbs was a long-time bank customer of Newcomb’s. Hobbs was in the business of buying, refurbishing and selling tractors through "Southern Associates, Inc." Newcomb was conducting a similar business on his own in addition to his banking duties.
In 2012, Hobbs began selling tractors on behalf of Newcomb. Hobbs would recondition and sell the tractors, withhold his expenses and commissions from the sales and give Newcomb payment for the tractors.
In 2014, Hobbs purchased and sold a tractor on behalf of Newcomb. Before Hobbs could give Newcomb his $7,400 profit from the sale, Hobbs’ wife spent the money. Newcomb then fraudulently renewed and increased Hobbs’ FirstBank loan by $7,400 in the name "Southern Associates, Inc." Newcomb used the funds to pay off the loan on the tractor, which was then defaulted at a loss to FirstBank in the amount of $118,390.45.
On March 12, 2019, Chief United States District Court Judge S. Thomas Anderson sentenced Newcomb to twelve months and one day imprisonment. He was also ordered to serve two years supervised release and to pay restitution of $110,990.45.
U.S. Attorney D. Michael Dunavant said, "The financial fraud committed by this defendant is disturbing. The abuse of his position of trust and authority as a bank vice president for his own personal gain had a significant negative impact on the shareholders, employees and customers of FirstBank. The U.S. Attorney’s Office places a high priority on protecting the security and integrity of transactions, deposits and assets of financial institutions, and this case demonstrates that commitment."
"The FDIC Office of Inspector General is pleased to join the U.S. Attorney’s Office in bringing Mr. Newcomb to justice. We are especially concerned when trusted insiders abuse their positions to harm the financial institutions that employ them. We will continue our efforts to investigate such abuses in FDIC-insured financial institutions throughout the country," said Laurie L. Younger, Special Agent-in-Charge, FDIC - Office of the Inspector General, Dallas Region.
This case was investigated by the Federal Deposit Insurance Corporation – Office of the Inspector General.
Assistant U.S. Attorney Matt Wilson prosecuted this case on the government’s behalf.
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Former Erie Resident Indicted on Charges Relating to the Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The twelve-count indictment named Joshua Davis Loucks, 35, as the sole defendant.
According to the indictment presented to the court, Loucks took sexually explicit photos and produced videos of a minor victim who was under the age of eighteen. He also received computer images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The law provides for a maximum total sentence of 361 years in prison, a fine of $3,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police and the Erie Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former DoD Employee Sentenced to Prison for $1.4 Million Fraud SchemeRead the Press Release
NEWPORT NEWS, Va. – A Matthews woman was sentenced today to four years in prison for computer fraud and theft of government property in connection with an extensive timekeeping fraud that resulted in losses of over $1.4 million, which she was ordered to pay in restitution.
According to court documents, Michelle M. Holt, 52, was previously employed as a federal employee for the Department of Defense. Holt worked as a secretary for U.S. Air Force, Air Combat Command, Communication Support Squadron, at Joint Base Langley-Eustis. Holt was a salaried employee on the General Schedule (GS) grade for the federal civilian workforce. As such, she was entitled to overtime pay if authorized by her employer, was also entitled to other forms of holiday and annual leave, and premium pay for any federal holidays worked.
A law enforcement investigation determined that from December 2001 to July 2018, Holt falsely claimed over 42,000 hours in unauthorized overtime for hours she did not work, as well as other amounts of unauthorized holiday leave, sick leave and annual leave, all amounting to losses to the United States of more than $1.4 million. In recent years, Holt’s overtime pay was over double that of her regular salary. Holt accomplished the fraud by making manual retroactive adjustments to protected computer time and attendance systems to add overtime, reverse leave taken and reverse holiday leave. In doing so, Holt used another employee’s log-in information without that employee’s knowledge or authorization.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Robert Craig, Special Agent in Charge for Defense Criminal Investigative Service Mid-Atlantic Field Office, and Colonel Kirk B. Stabler, Commander of the Air Force Office of Special Investigations, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Brian J. Samuels prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-93.
Former Congressional Candidate Sentenced for Fraud ConspiracyRead the Press Release
NORFOLK, Va. – A Hampton woman was sentenced today to three years in prison and one year of home detention for conspiracy to commit wire fraud and causing false records, wire fraud, and theft of government funds.
“Brown lied about feeding needy children in our community in hopes of making a financial gain for herself,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue to thoroughly investigate those who lie and steal from taxpayers and the federal government. I want to thank our trial team and investigative partners for their incredible work on this important case.”
According to court documents and evidence presented at trial, Shaun Brown, 60, defrauded the USDA’s summer food service program (SFSP) aimed at feeding low income children. Brown and her mother ran a non-profit company, JOBS Community Development Corporation, which served as a sponsor for the SFSP. Over the course of the 2012 Summer, Brown inflated the number of meals JOBS purportedly served to low-income children and submitted fraudulent claims for reimbursement based on the inflated numbers. Brown also orchestrated a massive scheme to falsify hundreds of documents to support her fraudulently inflated meal count numbers and ordered excessive amounts of food and milk products which she was well aware would never be used to feed needy children. At her direction, Brown’s employees disposed of this food and milk, purchased with federal funds, in large mounds behind buildings in Newport News, as well as a pig farm in Southern Virginia. As a result of her fraudulent actions, the USDA paid JOBS over $800,000 in federal funds.
Brown ran as the Democratic candidate for the 2nd Congressional District for the U.S. House of Representatives in 2016. Brown attempted to run again as an independent candidate in the 2018 election, but was removed from the ballot due to other fraudulent actions by Brown and others.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Michael C. Westfall, State Inspector General of Virginia, and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorneys Elizabeth M. Yusi and Melissa E. O’Boyle prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-169.
Former Chief Operating Officer of Long Island Federal Credit Union Pleads Guilty to EmbezzlementRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Suzanne Silva, the former Chief Operating Officer of Winthrop University Hospital Employees Federal Credit Union (Winthrop University HEFCU), pleaded guilty to embezzling $465,172 during her employment at the credit union. Today’s plea took place before United States District Judge Denis R. Hurley. When sentenced, Silva faces up to 30 years in prison, as well as restitution of $465,172 and a fine of up to $1 million.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“Silva has admitted that she abused her authority as Chief Operating Officer by stealing funds from the Credit Union for personal travel and shopping sprees,” stated United States Attorney Donoghue. “Today’s guilty plea sends the message that those who engage in such criminal conduct will be caught and prosecuted.”
Between March 2011 and June 2018, Silva used her authority at Winthrop University HEFCU to transfer hundreds of thousands of dollars from operating accounts of the credit union to accounts in her name and the names of family members. She used the funds to take Caribbean cruises, travel to Cancun and pay thousands of dollars a month for purchases from the Amazon and Etsy websites. Silva’s employment was terminated by Winthrop University HEFCU in June 2018.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
Suzanne Silva
Age: 35
Carle Place, New YorkE.D.N.Y. Docket No. 18-CR-507 (DRH)
Former Avoyelles Correctional Center warden pleads guilty fraud chargesRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced today that the former warden of the Avoyelles Correctional Center in Cottonport, Louisiana, pleaded guilty before U.S. District Judge Dee D. Drell for his scheme to steal more than $150,000 in taxpayer money for his personal benefit.
Nathan Burl Cain II, 51, of Moreauville, Louisiana, pleaded guilty to two counts of wire fraud. A trial started on Monday related to an indictment filed on August 11, 2017 charging Nathan Cain with one count of conspiracy to commit wire fraud and 17 counts of wire fraud. The trial ended today with his plea to two 20-year counts in the indictment.
According to the guilty plea, Nathan Cain conspired with his ex-wife Tonia Bandy Cain, 43, who served as the manager of the business office of the facility, to use Louisiana Department of Corrections bank cards to purchase personal items, while misrepresenting that such items were purchased for official business. The bank cards were used to purchase furniture, pet supplies, toilet paper, gun parts, Christmas decorations, yard tools, tires, a pressure cooker that was given as a gift to a third party, and other items.
Additionally, Nathan Cain commissioned the construction of a house on prison grounds for himself and did not bid the construction as required by law. Instead, purchases for the construction were made on bank cards on separate occasions for supplies and materials. Nathan Cain structured the purchases so that they would avoid detection by Department of Corrections monitors.
“Today’s conviction should serve as a warning to any other public official in Louisiana who intends to use public office to illegally line their own pockets,” Joseph stated. “Under my watch, the good-old-boy system of fraud and corruption among our public servants will not be tolerated. It will be prosecuted to the fullest extent of the law. I want to thank Louisiana Inspector General Stephen Street and the FBI for their hard work and investigating this case. I also want to thank Assistant U.S. Attorneys Luke Walker and David Ayo for their work prosecuting the defendant.”
“Justice was done today,” stated Louisiana Inspector General Stephen Street. “The manner in which Nate Cain repeatedly and brazenly stole money from Louisiana taxpayers was shocking and showed a staggering sense of entitlement on his part. Mr. Cain not only abused the considerable powers given to him as Warden, but also blatantly violated the public’s trust and brought shame to the Louisiana Department of Corrections. This case should send a message in the strongest possible terms that we have zero tolerance for it, and will continue to do everything in our power to bring about severe criminal consequences whenever and wherever there is corruption by Louisiana public officials. I want to acknowledge and thank United States Attorney David Joseph and Assistant United States Attorneys Luke Walker and David Ayo for doing such an outstanding job prosecuting this case. I am also very grateful for our continuing successful partnership with the FBI, which has again yielded outstanding results.”
Nathan Cain faces up to 20 years in prison, five years of supervised release, a $250,000 fine per count and restitution not to exceed $152,364.69. The court set sentencing for June 17, 2019. Tonya Cain pleaded guilty on July 9, 2018 to wire fraud conspiracy. The court set sentencing for April 12, 2019.
The FBI and the Louisiana Office of Inspector General conducted the investigation. Assistant U.S. Attorneys John Luke Walker and David J. Ayo are prosecuting the case.
Florida Man Sentenced to More Than 8 Years in Federal Prison for Robbery SpreeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ROBERT ABEL, 56, of Atlantic Beach, Florida, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 100 months of imprisonment, followed by three years of supervised release, for a Connecticut bank robbery, two armed robberies in Florida and a carjacking in South Carolina.
According to court documents and statements made in court, on February 11, 2017, Abel, brandishing a long silver blade, robbed a McDonald’s restaurant in East Palm Coast, Florida. On February 12, brandishing a long knife, he robbed a CVS in St. Augustine, Florida. Abel stole a total of approximately $733 during these two robberies.
On February 15, Abel stole a car from a woman in South Carolina, ordering the victim not to move or he would shoot her.
On February 17, Abel stole $1,517 during a robbery of a Webster Bank branch in Stratford. He then attempted to rob a Walgreens Pharmacy in Stratford, but left the store without any money. Milford Police arrested Abel later that day.
Abel has been detained since his arrest. On November 6, 2017, he pleaded guilty to one count of bank robbery.
This matter was investigated by the Federal Bureau of Investigation, Stratford Police Department and Milford Police Department, with the assistance of the Summerville (S.C.) Police Department, St. Augustine Police Department and the Flagler County (Fla.) Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Five Members of Violent Bronx Gang Charged in Connection with Shooting of Off-Duty NYPD OfficerRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of an Indictment charging five members and associates of the “Jack Boyz” street gang with racketeering and firearm offenses in connection with the shooting of an off-duty NYPD officer. PATRICK AVILA, a/k/a “Pat,” JALEN COLDS, a/k/a “Jay Gunz,” NAZAE BLANCHE, a/k/a “Zae,” and DONNELL JENKINS, a/k/a “Nellz,” were taken into custody this morning and will be presented before U.S. Magistrate Judge Gabriel W. Gorenstein later today. LEON SMALLS, a/k/a “Smoove,” remains at large. The case is assigned to U.S. District Judge Valerie E. Caproni.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the indictment, this gang committed a brazen act of violence, and one of New York City’s finest was struck by their gunfire. Thanks to the extraordinary work of the NYPD, these defendants will now face justice in federal court.”
NYPD Commissioner James P. O’Neill said: “When an off-duty cop was driving home from work in October, he was struck in the chest during a gang-related shooting. This further highlighted our efforts to precisely investigate and rid from New York City streets such brazen criminals. We stand with our local, state and federal law enforcement partners ready to identify and bring to justice drug dealers and gang members who are at the root of crime and violence in our city. With these arrests, we continue to make significant progress in our work to make the streets of New York safer for everyone.”
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
The Jack Boyz are a criminal enterprise involved in committing numerous acts of violence, including shootings, in and around the Bronx. Members and associates of the Jack Boyz engage in violence to retaliate against rival gangs, to promote the standing and reputation of the Jack Boyz, and to protect the gang’s narcotics business. Members and associates of the Jack Boyz enrich themselves by committing robberies and selling drugs.
On October 30, 2018, AVILA, COLDS, BLANCHE, JENKINS, and SMALLS shot at gang rivals in the vicinity of East 137th Street and Brown Place. During the course of that shooting, an off-duty NYPD officer was struck in the chest.
* * *
A chart containing the names, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Karin Portlock and Michael Longyear are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
AGES
MAX. SENTENCE
1
Attempted murder in aid of racketeering
18 U.S.C. § 1959
PATRICK AVILA
JALEN COLDS
NAZAE BLANCHE
DONNELL JENKINS
LEON SMALLS
19
19
19
19
23
20 years in prison
2
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence, which firearm was discharged
18 U.S.C. § 924(c)
PATRICK AVILA
JALEN COLDS
NAZAE BLANCHE
DONNELL JENKINS
LEON SMALLS
Life in prison
Mandatory minimum of 10 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Five Individuals and Two Companies Plead Guilty to Felony Charges in Multimillion Dollar Scheme to Fraudulently Sell Popular Dietary SupplementsRead the Press Release
Five individual defendants and two companies pleaded guilty in Dallas to felony charges in connection with a scheme to fraudulently sell workout supplements, the Department of Justice announced today.
All of the defendants played roles in developing, manufacturing, or marketing the popular workout and weight loss supplements known as Jack3d and OxyElite Pro, which were distributed by Dallas-based dietary supplement company USPlabs. Cyril Willson, 38, of Ralston, Nebraska, and Matthew Hebert, 40, of Dallas, pleaded guilty today to introducing misbranded food into interstate commerce with the intent to defraud or mislead. Jonathan Doyle, 40, of Dallas, the president of USPlabs, pleaded guilty February 21 to conspiracy to introduce misbranded food into interstate commerce. Sitesh Patel, 35, of Irvine, California, the vice president of S.K. Laboratories, a California dietary supplement manufacturer, pleaded guilty on February 25 to conspiracy to introduce misbranded food into interstate commerce and to the introduction of misbranded food into interstate commerce. Jacobo Geissler, 42, of University Park, Texas, the CEO of USPlabs, pleaded guilty on February 28 to conspiracy to introduce misbranded food into interstate commerce. In addition, S.K. Laboratories pleaded guilty on February 25 to introduction of misbranded food into interstate commerce, and USPlabs pleaded guilty to conspiracy to introduce misbranded food into interstate commerce on March 5.
The misbranding charges all relate in part to OxyElite Pro, which was recalled in 2013 in the wake of an investigation by the Food and Drug Administration into whether the supplement caused liver injuries in consumers. All of the defendants were charged in a 2015 indictment returned by a Dallas federal grand jury in the Northern District of Texas.
“Dietary supplement makers may not disregard the law and trick consumers about what is in their products,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Consumers are entitled to trust that the products they consume are safe. We will continue to investigate and prosecute those who enable the sale of mislabeled and potentially unsafe dietary supplements.”
The indictment alleged that the defendants participated in a conspiracy to import dietary supplement ingredients from China, including the stimulant known as “DMAA,” using false certificates of analysis and false labeling, and then lied about the source and nature of those ingredients. According to the indictment, the defendants told some of their retailers and wholesalers that USPlabs products contained natural plant extracts, when in fact they contained a synthetic stimulant manufactured in a Chinese chemical factory. The indictment also alleged that the defendants sold some of their products without determining whether they would be safe to use. According to the indictment, USPlabs products related to the conspiracy brought the company hundreds of millions of dollars.
In pleading guilty, Doyle, Geissler, and Patel admitted that they imported substances with false and misleading labeling in part to avoid law enforcement and regulatory agency attention. Willson and Hebert admitted that they helped to cause a dietary supplement to be shipped with false labeling regarding the ingredients it contained.
“Consumers deserve to know exactly what’s in their dietary supplements,” said U.S. Attorney for the Northern District of Texas Erin Nealy Cox. “We cannot stand by as supplement companies deceive customers – especially when they use untested, suspect ingredients in their products.”
“Americans who choose to take dietary supplements expect that those products are safe and properly labeled,” said FDA Commissioner Scott Gottlieb, M.D. “Dietary supplement labeling that falsely or misleadingly declares its contents presents a risk to the public, and the FDA will exercise its full authority under the law to bring to justice all those who produce and distribute misbranded dietary supplements.”
Doyle and Geissler pleaded guilty before U.S. Magistrate Judge Renee Harris Toliver. Patel, Willson, Hebert, S.K. Laboratories, and USPlabs pleaded guilty before U.S. District Judge Sam A. Lindsay. Patel faces a maximum sentence of six years’ imprisonment; Doyle and Geissler face up to five years’ imprisonment; and Willson and Hebert face up to three years’ imprisonment. The individual defendants, together with the companies, agreed to pay criminal fines and forfeitures totaling about $60 million. The court set sentencing hearings for Willson and Hebert on July 8, 2019, for Patel and S.K. Laboratories on Aug. 12, 2019, and for USPlabs on Aug. 19, 2019. The remaining sentencing dates have not yet been set.
The case was investigated by FDA’s Office of Criminal Investigations. The case is being prosecuted by Trial Attorneys David Sullivan, Patrick Runkle, and Raquel Toledo with the Department of Justice’s Consumer Protection Branch, and Assistant United States Attorneys Errin Martin and John DelaGarza of the U.S. Attorney’s Office for the Northern District of Texas.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
Five Argentine Men Charged with Illegally Operating Online Pharmacies and Importing and Distributing OxycodoneRead the Press Release
U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that three defendants were arrested in Buenos Aires, Argentina yesterday. These defendants are wanted in the United States to face charges in the Eastern District of Wisconsin for operating numerous illegal online pharmacies and conspiring to import and distribute illegal controlled substances, including Oxycodone, in the United States. The three defendants and two additional defendants were charged on October 10, 2018, in the Eastern District of Wisconsin by a superseding indictment, which had remained sealed until their arrest.
Conrado Adolfo Frenzel, aka “Otto” (age: 50), Jorge Alejandro Paura, aka “Larry” (age: 51), Santiago Videmato, aka “James Duggan” (age: 35), Luciano Brunetti, aka “Biff Tannen” (age: 30), and Lucas Daniel Paura, aka “Carl Carlson” (age: 31), all from Buenos Aires, Argentina, were charged with conspiracy to distribute controlled substances, including Oxycodone; illegally distributing controlled substances using the internet; illegal use of the internet to advertise the sale of controlled substances; conspiracy to import controlled substances, including Oxycodone; and multiple counts of illegal importation and attempted importation of controlled substances from Romania and another country to the Eastern District of Wisconsin. The charges of conspiracy, distribution, and importation each carry a maximum penalty of 20 years in prison and a $1 million fine. The superseding indictment also includes a forfeiture allegation that identifies 28 residential real properties located in Florida.
Argentine authorities arrested Frenzel, Jorge Paura, and Videmato in Buenos Aires, on March 12, 2019, pursuant to requests for their provisional arrest from the United States. Authorities are pursuing the capture and arrest of Brunetti and Lucas Paura. The United States will seek to extradite these defendants to face the charges in the Eastern District of Wisconsin.
“Combatting the opioid crisis and the illegal flow of prescription drugs requires international cooperation,” said U.S. Attorney Krueger. “We commend the outstanding work of the Argentine law enforcement agencies whose partnership with U.S. authorities made these arrests possible.”
“The Drug Enforcement Administration (DEA) is committed to fight the opioid epidemic through aggressive domestic and international investigations,” said DEA Milwaukee District Office Special Agent in Charge Paul E. Maxwell, Jr. “Today’s arrests reflect the resolve and partnership of U.S. and Argentine law enforcement agencies to combat the transnational criminal activity which is fueling the opioid crisis.”
“IRS Criminal Investigation (CI) is committed to using our forensic accounting skills to assist in complex fraud and financial schemes,” said IRS-CI Special Agent in Charge Gabriel Grchan. “We are proud to work with our law enforcement partners to help investigate individuals, and to help put a stop to this and other types of illegal activity.”
“The indictments in this investigation are a direct result of the relentless efforts of a group of aggressive law enforcement officers from multiple agencies determined to keep the American public safe from illegal on-line ‘pharmacies,’” said Inspector in Charge Craig Goldberg of the U.S. Postal Inspection Service Chicago Division. “The Postal Inspection Service will never stop fighting to keep consumers safe from these types of crimes and the devastating and sometimes deadly effects of the drugs purchased from these illegal pharmacies. International borders will not hide these criminals from federal law enforcement; they will be brought to justice no matter where they run their criminal enterprise.”
The charges and arrests resulted from a multi-year investigation by the U.S. Department of Justice’s Office of International Affairs, the U.S. Attorney’s Office, DEA, IRS-CI, the U.S. Secret Service and the U.S. Postal Inspection Service. United States authorities worked closely with Argentine law enforcement authorities, including the Argentina Federal Intelligence Agency (AFI), City of Buenos Aires Police Department, Argentina Attorney General’s Office-PROCUNAR, Ministry of Security for the Nation of Argentina and Ministry of Justice for the Nation of Argentina. The following federal agencies also participated in the operation: the FBI, U.S. Department of State’s Diplomatic Security Service, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The case is being prosecuted by Assistant U.S. Attorneys Laura S. Kwaterski and Rebecca Taibleson of the Eastern District of Wisconsin.
The public is cautioned that an indictment is merely a charge and the defendants are presumed innocent until and unless proven guilty.
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Federal Grand Jury Indicts Long Beach Man on Four Felony Offenses Related to Aliso Viejo Spa Bombing that Killed His Ex-GirlfriendRead the Press Release
SANTA ANA, California – A federal grand jury today issued a four-count indictment against a Long Beach man for his role in the May 15, 2018 bombing of the Magyar Kozmetica spa in Aliso Viejo that killed the man’s ex-girlfriend and seriously injured two other people.
Stephen William Beal, 59, who was arrested earlier this month pursuant to a criminal complaint, was charged with four felonies:
- use of a weapon of mass destruction resulting in death,
- malicious destruction of a building resulting in death,
- use of a destructive device in relation to a crime of violence, and
- possession of an unregistered destructive device.
Beal, who is currently being held without bond in federal custody, is scheduled to be arraigned on the indictment on March 25.
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.
The charges of use a weapon of mass destruction resulting in death and malicious destruction of a building resulting in death each carry a potential sentence of life without parole in federal prison. The charge of use of a destructive device in relation to a crime of violence carries an additional consecutive penalty of 30 years in federal prison. The charge of possession of an unregistered destructive device carries a statutory maximum penalty of 10 years in prison.
This matter is being investigated by the FBI’s Joint Terrorism Task Force, which includes special agents with the FBI and deputies with the Orange County Sheriff’s Department. Task Force members who participated in the investigation included IRS Criminal Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Los Angeles Police Department; the Long Beach Police Department; the Irvine Police Department; the Anaheim Police Department; and the Orange County Fire Authority.
The case against Beal is being prosecuted by Assistant United States Attorneys Mark Takla and Annamartine Salick of the Terrorism and Export Crimes Section.
Ex-Bank Vice President Convicted of Bank Embezzlement/FraudRead the Press Release
BROWNSVILLE, Texas – A 69-year-old permanent legal resident from Mexico living in Brownsville has entered pleas of guilty to theft/embezzlement of bank funds, theft of funds by a bank employee and aggravated identity theft, announced U.S. Attorney Ryan K. Patrick.
Maria de Los Angeles Caballero aka Angie Caballero pleaded guilty today before U.S. District Judge Rolando Rivera.
From about November 2010 to July 2017, while employed as vice-president at Texas Community Bank in Brownsville, Caballero withdrew funds from two customer accounts without authorization. From one account, she ordered and obtained blank checks on which she then proceeded to forge the customer’s signature, fill out amounts and deposit the checks into a Wells Fargo account under the names of two of her relatives.
Authorities discovered 24 checks Caballero forged in this manner. Additionally, Caballero ordered and signed two cashier’s checks which she then deposited into her relatives’ account at Wells Fargo Bank.
The total amount she embezzled from the two accounts was proved to be $1,516,391.57.
Judge Olvera accepted the pleas and set sentencing for June 12, 2019. At that time, Caballero faces up to 30 years in of imprisonment as well as a $1 million fine. The identity theft also carries a mandatory 24 months which must be served consecutively to any other term imposed.
She was permitted to remain on bond pending that hearing.
The government will seek to obtain restitution on behalf of the two bank customers to recover the embezzled amount.
The FBI conducted the investigation. Assistant U.S. Attorney Oscar Ponce is prosecuting the case.
Elmira Man Arrested on Multiple Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr., announced today that Andrew Tingling, 39, of Elmira, NY, was charged by criminal complaint with conspiracy to possess with intent to distribute one kilogram or more of heroin; possession with intent to distribute 40 grams or more of fentanyl; being a felon in possession of a firearm; and possession of a firearm in furtherance of a drug trafficking crime. The charges carry a minimum penalty of five years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Robert A. Marangola, who is handling the case, stated that the charges stem from an investigation conducted involving the sale of heroin in Elmira. On March 1, 2019, law enforcement officers from multiple agencies executed a search warrant at 207 South Avenue in Elmira. During the search, officers seized over $50,000 U.S. currency, paraphernalia for the processing and distribution of narcotics, approximately 300 grams of fentanyl, and a loaded .22 caliber handgun. Tingling was located inside the residence.
In March 1998, the defendant was convicted in New York State court of Criminal Possession of a Weapon in the Second Degree, and in March 2008, Tingling was convicted in Chemung County Court Attempted Criminal Possession of a Controlled Substance in the Third Degree. As a result, the defendant is legally prohibited from possessing a firearm.
The criminal complaint was the culmination of an investigation on the part of the Elmira Police Department, under the direction of Chief Joseph Kane; the New York State Police, Community Narcotics Enforcement Team, Southern Tier, under the direction of Major Mary Clark and Lieutenant Kevin P. Sucher; Chemung County Sheriff’s Office under the direction of Acting Sheriff William A. Schrom; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Dunbar man sentenced for being a prohibited person in possession of a firearmRead the Press Release
Prohibited Person Status as Due to Two Prior Domestic Violence Convictions
CHARLESTON, W.Va. -- A Dunbar, West Virginia man was sentenced to 18 months in prison, announced United States Attorney Mike Stuart. Brian M. Oliver, 22, previously pled guilty on December 17, 2018, to the felony offense of being a prohibited person in possession of a firearm. Oliver also agreed to the forfeiture of the gun. Stuart praised the work of the Dunbar Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Domestic violence is an insidious, diabolical force in society that must be rooted out at every level,” said United States Attorney Mike Stuart. “Those folks that are domestic batterers have lost their right and privilege to possess a firearm. There’s no greater champion of the Second Amendment than me but the thugs that beat and whip and abuse those weaker than them should never be near a firearm.”
On April 29, 2018, Dunbar Police Officers stopped a truck for a traffic infraction. Oliver was a passenger in the truck. During the course of the traffic stop, Oliver admitted to officers that he had a firearm on his person. Dunbar officers subsequently patted down Oliver and recovered an Iver Johnson .22 caliber pistol in his front pants pocket. Record checks revealed Oliver had been convicted of the misdemeanor offense of Domestic Battery in Kanawha County Magistrate Court in January 2017, and also of Second Offense Domestic Battery in March 2017. As a result of these convictions, Oliver is prohibited from carrying a firearm. Oliver admitted to the Dunbar police officers that he possessed the firearm and was not supposed to do so. The ATF traced the gun, revealing that it had traveled in interstate commerce as it was not manufactured in West Virginia.
Assistant United States Attorney Erik S. Goes is handling the prosecution. The hearing was held before United States District Judge Joseph R. Goodwin.
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Drug Trafficker Convicted at Trial for Distributing Crack Cocaine in North PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Juan Jarmon, 32 of Philadelphia, was convicted today of one count of conspiracy to distribute 280 grams or more of cocaine base (“crack”); one count of unlawful use of a communication facility in furtherance of a drug felony; five counts of distribution of cocaine base (“crack”); one count of aiding and abetting distribution of cocaine base (“crack”); five counts of possession with intent to distribute cocaine base (“crack”); and 10 counts of distribution of and possession with intent to distribute cocaine base (“crack”) within 1,000 feet of public housing.
The defendant was a leader of the Jarmon/Edwards drug-trafficking group (DTG) that sold crack cocaine in and around the Norman Blumberg Apartment Complex (Blumberg) in North Philadelphia from at least late 2012 through late 2014. Blumberg was a public housing facility that contained two children’s playgrounds. DTG members sold crack cocaine 24 hours a day, 7 days a week, in and around the Blumberg high-rise buildings, which included the Hemberger Building and the Judson Building. The DTG employed a large network of supervisors, sellers, lookouts, suppliers, and those that permitted DTG members to use their apartments as stash locations and hideouts. During the course of the conspiracy, the group supplied over $1,000,000 of crack cocaine to this neighborhood.
From late 2012 until early-to-mid 2014, the defendant controlled drug sales in the Hemberger Building. Among other duties, the defendant purchased bulk crack and cocaine; cooked and packaged crack cocaine into bundles; sold crack cocaine to other drug traffickers and drug users; hired, fired, and supervised shift sellers and lookouts; secured apartment space and stash locations for their members; supplied bundles of crack cocaine to shift sellers; collected drug proceeds from shift sellers; levied taxes on members and customers; and provided protection to other drug trafficking groups. The defendant preyed on the financial weakness and vulnerability of others (including drug addicts, juveniles, the mentally ill, and those living in poverty) in order to further the interests of the DTG.
“Jarmon made money hand over fist selling crack for years, controlling his crew and capitalizing on other people’s addiction. Today’s verdict ensures that our streets are safer because Jarmon will remain where he belongs – behind bars – for years to come,” said U.S. Attorney McSwain. “I commend the hardworking prosecutors from my office and our law enforcement partners for putting this case together and holding this defendant accountable for the destruction he caused.”
“Juan Jarmon and his crew kept a tight, violent grip on the Blumberg Apartments complex and surrounding areas,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Selling crack day and night, they made a nice profit, at the cost of the neighborhood’s quality of life. The FBI and our partners will continue to work to make this city safer by putting drug traffickers out of business and behind bars.”
“Juan Jarmon was convicted of leading a drug trafficking organization responsible for distributing crack cocaine in and around the former Norman Blumberg Apartment complex, which was one of the largest public housing projects in Philadelphia,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Jarmon and his associates sold the crack cocaine to street-level users, profiting from their addictions, and damaging the health and safety of the residents of the housing project. This case was a joint effort of the DEA, the Federal Bureau of Investigation, and the Philadelphia Police Department.”
“The investigation, arrest, and successful prosecution of Juan Jarmon serve as an example of the effectiveness of strong and consistent collaboration between law enforcement agencies,” said Richard J. Ross, Jr., Philadelphia Police Commissioner. “We anticipate that this conviction will further disrupt narcotics trafficking and attendant criminal activity in and around the Norman Blumberg apartment complex, as well as the surrounding North Philadelphia neighborhood, and have an appreciable impact on the quality of life of our residents.”
This case was investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorneys Jerome Maiatico and Yvonne Osirim.
District Court Enters Permanent Injunction Against Texas Compounding Pharmacy and its Owner to Prevent Distribution of Adulterated DrugsRead the Press Release
The District Court for the Northern District of Texas entered a consent decree of permanent injunction against defendants JMA Partners Inc., a compounding pharmacy doing business as Guardian Pharmacy Services (Guardian), and Jack R. Munn, Guardian’s owner, the Department of Justice announced today. The injunction permanently enjoins the defendants from distributing adulterated, misbranded, and unapproved new drugs in violation of the federal Food, Drug, and Cosmetic Act (FDCA).
The Department filed a complaint in the U.S. District Court for the Northern District of Texas on March 6, 2019, at the request of the U.S. Food and Drug Administration (FDA), alleging, among other things, that the defendants failed to adequately address insanitary conditions at their drug-compounding facility. The complaint further alleges that defendants distributed misbranded and unapproved new drugs because, among other things, the drugs were distributed by the defendants without patient-specific prescriptions.
As part of the ordered permanent injunction, defendants cannot resume manufacturing, processing, or distributing sterile drugs until FDA determines that they have complied with specific remedial measures. Those measures seek to ensure that defendants manufacture and distribute drugs in conformity with applicable manufacturing standards.
“Doctors and patients must be able to rely on the safety and quality of drugs produced by compounding pharmacies,” said Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division. “The Department of Justice will continue to work with FDA to enforce the provisions of the Food, Drug, and Cosmetic Act.”
According to the complaint, defendants’ drugs were adulterated because they were prepared, packed, or held under insanitary conditions whereby they may have been contaminated or may have been rendered injurious to health. For example, the complaint alleges that during a 2018 FDA Inspection, defendants used non-sterile disinfectants that were labeled as sterile throughout the facility. The complaint further alleges that defendants failed to take adequate corrective actions after documenting repeated instances of high humidity levels in an area specially designed for aseptic processing of sterile drugs. High humidity levels in aseptic processing areas can lead to an increase in the proliferation of microorganisms present in those areas.
On July 28, 2017, FDA issued a Compounding Risk Alert to warn health professionals of adverse event reports concerning at least 43 patients who were administered intravitreal (eye) injections of a drug containing triamcinolone (a steroid) and moxifloxacin (an antibiotic) compounded by Guardian. According to the FDA’s Compounding Risk Alert, these patients developed various symptoms, including vision impairment.
Guardian initiated voluntary recalls of drug products in 2016 and 2018. The 2016 recall involved certain unexpired sterile drug products, and was initiated due to a lack of sterility assurance. The 2018 recall, initiated after FDA’s 2018 Inspection, involved products within expiry intended to be sterile. Guardian also temporarily ceased sterile production at that time.
“The Food, Drug, and Cosmetic Act is designed to protect the public health,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas. “Our district is a committed partner in enforcing the provisions of the Act in the interest of public safety.”
“When the FDA finds compounders that continue to violate the law by not adhering to manufacturing requirements, and put patients at risk, we are going to hold them accountable under the law,” said FDA Commissioner Scott Gottlieb, M.D. “We’ve continued to see violative behavior among compounding pharmacies, and we’re committed to taking enforcement actions against drug compounders that threaten the public health.”
The government is represented by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Mary M. (Marti) Cherry of the U.S. Attorney’s Office for the Northern District of Texas, with the assistance of Associate Chief Counsel, Enforcement, Jennifer Argabright of the Department of Health and Human Services’ Office of General Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
Delaware Businessman Pleads Guilty in $3.3M Ponzi SchemeRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that Carl Chen, owner of Chenmax Properties, Inc., a Delaware Real Estate Investment Trust, and part-owner of Re/Max Sunvest Realty Co., pled guilty in federal court yesterday to wire-fraud charges for defrauding investors. Chen’s sentencing is scheduled June 21, 2019 before the Honorable Richard G. Andrews, United States District Judge for the District of Delaware. Chen faces a maximum penalty of 20 years of imprisonment.
According to court documents and statements made in open court, between 2013 and 2017, Chen a solicited Re/Max Sunvest Realty clients and others to invest $3.32 million,. Chen fraudulently represented the funds would be used to purchase real estate which would provide annual interest returns of 10% to 15% for the investors. Instead, Chen diverted the money from later investors to pay off interest obligations to prior investors.
In October 2017, Chen declared bankruptcy in the United States Bankruptcy Court for the District of Delaware, seeking to discharge millions in debts he owed to investors.
U.S. Attorney Weiss stated, “The defendant callously targeted vulnerable individuals and then defrauded them out of their hard-earned savings. My office will continue to prosecute those who seek to profit by criminally exploiting others.”
“The FBI in Delaware will continue to aggressively pursue those who defraud unknowing or unsuspecting victims who place their trust in individuals who misrepresent themselves as professionals," said FBI Baltimore Acting Special Agent in Charge Jennifer Moore. "These individuals, who prey on investors, enrich themselves and cause financial damage which may take years, if ever, for the victims to recover.”
This case was investigated by the FBI and the Office of the United States Trustee and is being prosecuted by Assistant U.S. Attorney Alexander P. Ibrahim and Special Assistant U.S. Attorney Hannah McCollum.
Creator of Fraudulent Chicago-Area Pharmacy Sentenced to Five Years in Prison for $1.6 Million Fraud SchemeRead the Press Release
The creator of a fraudulent Chicago-area pharmacy has been sentenced to 60 months in federal prison for his role in a $1.6 million health care fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John R. Lausch Jr. of the Northern District of Illinois, Special Agent in Charge Jeffrey S. Sallet of the FBI’s Chicago Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
James Calhoun, 74, of Des Plaines, Illinois, was sentenced by U.S. District Judge John Z. Lee of the Northern District of Illinois. Judge Lee also ordered Calhoun to pay $1.6 million in restitution. Calhoun pleaded guilty in September 2018 to one count of conspiracy to commit health care fraud.
As part of his guilty plea, Calhoun admitted that he defrauded Medicare Part D of $1.6 million through an elaborate scheme in which he created a fictitious pharmacy on paper called “Cal’s Pharmacy” and used it to process hundreds of prescription claims for drugs that were never dispensed. For most of its existence, the pharmacy had no physical location or inventory, he admitted. Calhoun further admitted that he enrolled himself as a beneficiary in a Part D program and, from around January 2012 continuing through at least May 2015, Calhoun went to doctors’ appointments to try to obtain prescriptions for drugs that he would then pretend to fill at Cal’s Pharmacy, including and most often for the drug Arixtra, an expensive daily injection. Calhoun also admitted that acting as Cal’s Pharmacy’s owner, a fact that was concealed through the use of a straw owner, Calhoun collected all of the Part D reimbursement payments made to Cal’s Pharmacy. In addition to pretending to fill prescriptions for himself, Calhoun admitted that he fabricated prescription claims for three other people, including his codefendant and wife, Betty Calhoun. Calhoun also admitted that later on in the scheme, when Medicare started to deny the prescription claims, Calhoun appealed the denial and knowingly created and submitted to Medicare false and fabricated checks as part of his appeal, including to an administrative law judge, claiming they showed his payment for Arixtra prescriptions from Cal’s Pharmacy.
The total loss to Medicare was $1.6 million, Calhoun admitted.
Betty Calhoun pleaded guilty to one count of health care false statements in November 2018 and was sentenced to probation.
This case was investigated by the FBI and HHS-OIG. Trial Attorney Leslie S. Garthwaite of the Criminal Division’s Fraud Section prosecuted the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Buffalo Man Pleads Guilty to Drug and Ammunition ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Tremaine Giddens, 42, of Buffalo, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to possession with intent to distribute, and distribution of, cocaine, and being a felon in possession of ammunition. The charges carry a maximum penalty of 30 years in prison and a $2,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that in October 2017, the defendant sold a quantity of cocaine to an individual working with the Drug Enforcement Administration (DEA) in a commercial parking lot at 15 Skillen Street in Buffalo.
On November 9, 2017, a federal search warrant was executed at 15 Skillen Street where investigators recovered a quantity of suspected cocaine, plastic bags, baking powder, and 2 digital scales. In addition, 35 rounds of .44 caliber ammunition was recovered.
On August 29, 2006, Giddens was convicted in Federal Court of possession with intent to distribute, and distribution of, a controlled substance. On January 20, 2000, in Erie County Court, the defendant was convicted of Criminal Possession of a Controlled Substance in the Fifth Degree. As a result of these convictions, Giddens is legally prohibited from possessing ammunition.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for June 20, 2019, before Judge Geraci.
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Bronx Man Charged with MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the Homeland Security Investigations (“HSI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a federal indictment charging JAMAL BRISSETT, a/k/a “Trigger” with murdering Leshaun Gordon, 19, in the Bronx, New York, on June 30, 2009. BRISSETT was arrested yesterday and is expected to be presented before Chief U.S. Magistrate Judge Gabriel W. Gorenstein in federal court later today.
U.S. Attorney Geoffrey Berman said: “As alleged, Jamal Brissett killed 19-year-old Leshaun Gordon during a drug deal. Ten years may have passed, but we have not forgotten. Thanks to the determination of our partners at HSI and the NYPD, Brissett must now answer for his alleged crimes.”
HSI Special Agent in Charge Angel M. Melendez said: “In a scheme for revenge, Brissett is alleged to have robbed and shot a man, then later set the car on fire to cover up the crime. Nearly ten years ago a man was slain on the streets of New York City, but the crime was not forgotten. No matter how long it takes or how cold the case, HSI and its law enforcement partners will not stop pursuing perpetrators who threaten the safety of this great city.”
Police Commissioner James P. O’Neill said: “The ability of investigators to achieve justice for this young man and provide a sense of closure to his family is paramount. The identification and arrest of the suspect in this case was a team effort that resulted from the close partnership that exists between the NYPD and our law-enforcement partners. I thank and commend the Southern District of New York, and the investigators of HSI and the NYPD whose hard work in the case demonstrate that our efforts remain determined, and precisely-focused.”
According to the allegations in the Indictment unsealed in Manhattan federal court[1]:
On or about June 30, 2009, BRISSETT shot and killed Gordon in the course of a drug-trafficking crime and a robbery in the vicinity of Mickle Avenue and Chester Street in the Bronx, New York. BRISSETT then caused the car where the murder occurred to be set on fire in order to destroy evidence of his crime.
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BRISSETT, 30, of the Bronx, New York, is charged with one count of using a firearm to commit murder during a crime of violence and a drug-trafficking crime, which carries a maximum penalty of death or life imprisonment, and one count of using arson to obstruct justice, which carries a maximum penalty of 20 years in prison. The maximum and minimum sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of HSI and the NYPD.
The prosecution of this case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Hagan Scotten and Danielle Sassoon are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless proved guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Biloxi Man Sentenced to over Five Years in Federal Prison for Trafficking Methamphetamine and Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss. – Andarius Cordero Thomas, 25, of Biloxi, was sentenced by Senior U.S. District Judge Louis Guirola, Jr., to 64 months in federal prison followed by 3 years supervised release for possession of methamphetamine with intent to distribute and possession of a firearm by an unlawful user of a controlled substance, announced U.S. Attorney Mike Hurst and Special Agent-in-Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Thomas was also ordered to pay a $5,000.00 fine, and to forfeit a firearm and ammunition he had possessed. Thomas pled guilty to the charges on December 4, 2018.
The Biloxi Police Department conducted three undercover controlled buys of methamphetamine from Thomas in 2017. A search of Thomas’ residence revealed 3 grams of methamphetamine, 1,300 grams of marijuana, 3 digital scales, 6 boxes of small plastic baggies, 2 partially smoked marijuana cigarettes, and a loaded 9mm pistol with ammunition, which Thomas used during his drug distribution.
Additionally, Thomas was stopped by Biloxi police on April 4, 2018, where he was the sole occupant in the vehicle and marijuana smoke was emanating from the vehicle. A search of the vehicle revealed marijuana, a digital scale, and a loaded 40 caliber pistol which had been stolen. A search of the area next to Thomas’ bed at his mother’s home revealed another 8 grams of marijuana.
U.S. Attorney Hurst commended the coordinated investigation by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and by the Biloxi Police Department. The case was prosecuted by Assistant U.S. Attorney Stan Harris.
Bergen County, New Jersey, Man Charged with Embezzlement and Failure to File Annual Report for Employee Benefit PlanRead the Press Release
NEWARK, N.J. – The trustee of a pension fund has been indicted for embezzling from an employee benefits plan and failing to file annual reports for the plan, U.S. Attorney Craig Carpenito announced today.
Howard Preschel, 62, of Teaneck, New Jersey, is charged by indictment with 10 counts of embezzlement from an employee benefit plan and three counts of failure to file an annual report. He surrendered on March 12, 2019, and made his initial appearance before U.S. Magistrate Judge James C. Clark III. Preschel was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Preschel served as a trustee for the CMG Vending Inc. Pension Trust Fund. CMG Vending operated, leased, and rented vending machines throughout New Jersey and New York. Preschel, by law, was a fiduciary and therefore required to act solely in the interest of the participants and beneficiaries. From at least October 2013, Preschel embezzled $186,123 from company’s pension trust fund.
Preschel was also required to publish and file annual reports with the Secretary of Labor. In order to conceal the ongoing embezzlement, Preschel failed to inform the participants and beneficiaries that insufficient funds were being forwarded to the pension trust and failed to file required annual reports for the plan.
The embezzlement charges each carry a maximum penalty of five years in prison and a fine of up $250,000. The failure to file an annual report charges each carry a maximum penalty of 10 years in prison and a fine of up to $100,000.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka; and the U.S. Department of Labor, Employee Benefits Security Administration, under the direction of Acting Regional Director of the New York Regional Office, Thomas Licetti, with the investigation leading to the indictment.The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Baltimore Man Pleads Guilty to Enticing a Minor to Produce Child PornographyRead the Press Release
Baltimore, Maryland – Antonio Wright, age 42, of Baltimore, Maryland, pleaded guilty today to coercing and enticing a minor to engage in sexually explicit conduct and to two counts of production of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
Wright admitted that he used an online social network to induce the victim, Jane Doe, to engage in sexually explicit conduct, and to produce images of that conduct. According to his plea agreement, Wright was in a relationship with the victim’s mother from at least 2009, when Jane Doe was four years old, and lived with the family intermittently until the Spring of 2017.
Beginning in at least August 2017, Wright and the victim, who was living with a foster family in Baltimore, began communicating by text messages, audio messages and images, using an online social network. The messages frequently included Wright’s love for Jane Doe, who told Jane Doe that they should eventually get married. Jane Doe was approximately 13 years old at this time. Wright instructed the victim not to tell others that she has “an older man for a boyfriend,” and that he would get in trouble if anyone found out.
On January 4, 2018, Wright spent time with Jane Doe at his residence when Baltimore City schools were closed due to snow. That afternoon, Jane Doe’s foster mother noticed that Jane Doe did not come home when she expected her. When she was unable to locate Jane Doe, she found the tablet that Jane Doe was using to communicate with Wright and observed the sexually explicit chats and images. After Wright brought Jane Doe home that afternoon, her foster mother filed a report with the Maryland Department of Human Services, who referred the case to Child Protective Services for investigation. As part of the investigation, Jane Doe’s tablet and social media accounts were searched, and sexually explicit photos, texts, messages, and voice messages were located.
As part of his plea agreement, Wright will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Wright faces a mandatory minimum of 10 years in prison and up to life in prison for enticement and coercion of a minor; and a mandatory minimum of 15 years and a maximum of 30 years in prison for each of the two counts of production of child pornography. Chief U.S. District Judge James K. Bredar has scheduled sentencing for June 7, 2019 at 10:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the federal case.
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Amsterdam Man Sentenced to 120 Months for Role in Gun Store BurglaryRead the Press Release
SYRACUSE, NEW YORK – Onic Martinez, age 34, of Amsterdam, New York, was sentenced today to 120 months in prison for transporting, storing, and possessing firearms stolen from Target Sports, Inc., a federally licensed firearms dealer in Schenectady County.
The announcement was made by United States Attorney Grant C. Jaquith and John B. Devito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge Norman A. Mordue also sentenced Martinez to 3 years of supervised release and ordered that he pay restitution in the amount of $48,775.
Martinez, who has two prior felony convictions for robbery, pled guilty on August 30, 2018. As part of his plea, Martinez admitted that he retrieved dozens of stolen firearms from a storage locker in Schenectady, New York, where Christian Roman and Jose Fontanez hid them shortly after the burglary on October 22, 2017. In exchange for his assistance, Martinez received several of the stolen firearms. Martinez was prohibited from possessing firearms because of his criminal record.
Jose Fontanez, age 36, of Schenectady, pled guilty in 2018 to stealing the firearms from Target Sports, and other, related charges. He is scheduled to be sentenced on April 22, 2019.
Christian Roman, age 24, of Schenectady, pled guilty in 2018 to stealing the firearms from Target Sports. He is scheduled to be sentenced on April 10, 2019.
Dalmary Morales, age 37, of Schenectady; and Juan Saez, age 35, of Rochester, New York, pled guilty in 2018 for their respective roles in stealing, transporting, and possessing the firearms. Morales and Saez are scheduled to be sentenced on April 22, 2019.
The case was investigated by the ATF, New York State Police, and the Glenville Police Department, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
20-Time Convicted Felon Pleads Guilty to Federal Firearms ChargeRead the Press Release
Ocala, Florida – Willie Lee Lewis (47, Ocala) today pleaded guilty to possessing a firearm as a convicted felon. He faces a minimum mandatory sentence of 15 years, and up to life, in federal prison. Lewis was indicted on February 13, 2019.
According to the plea agreement, on November 28, 2018, a City of Ocala police officer attempted to stop Lewis for a tag violation. Rather than pulling over, Lewis led the officer on a low-speed chase during which Lewis discarded a loaded pistol, cocaine, and marijuana from the window of his van. Police recovered these items and arrested Lewis, who subsequently placed a recorded telephone call from the county jail in which he described the firearm and drugs that he had tossed from the van’s window.
Lewis has 20 prior felony convictions that include multiple drug sales and illegal firearm offenses, thus qualifying him for enhanced sentencing as an Armed Career Criminal.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ocala Police Department jointly investigated this case. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
"Wing Stop Robbery Crew" Sentenced for Roles in Multiple Armed Crimes Committed Within Two WeeksRead the Press Release
HOUSTON - Five area men have been ordered to prison for their roles in a string of Houston-area armed robberies, including one in which someone was almost killed, announced U.S. Attorney Ryan K. Patrick.
Reshaun Lee Jenkins, 25, James Daniel Henderson, 24, Ashton Armstrong, 24, Cedric L. Andrews, 44, and Bradley Alexander, 28, had all previously pleaded guilty for their crimes as did Tadarius Robinson, 23, and Joseph Adams, 34, both also of Houston, and Mik Yia Shua Faye Durden, 22, of Livingston, and Travescy Cauley, 27, of Beaumont.
Today, U.S. District Judge Gray Miller imposed a total of 255 months in prison for Henderson. He was ordered to serve 51 months for the robberies in addition to another 204 months, which includes 120 months for discharging a firearm during the Wing Stop robbery and 84 months for brandishing a firearm during the robbery of an El Mexsal Taqueria robbery. The sentence for the firearm convictions must be served consecutively to each other and the sentence imposed for the robberies, resulting in the more than 21-year-sentence.
In imposing the massive term of imprisonment, the court noted Henderson had been the shooter in the Wing Stop robbery at 10749 North Freeway on Oct. 2, 2015, during which time an employee was almost killed.
Jenkins and Armstrong were both ordered to serve a total of 141 months, while Andrews and Alexander received a total of 33, and 147 months, respectively. As part of their sentences, Jenkins, Armstrong and Alexander were each required to serve 84 months consecutive to the sentences they received for the robberies for brandishing a firearm during the robberies to which they pleaded guilty.
Adams had previously received a 36-month term of imprisonment. Robinson, Durden and Cauley are still pending sentencing.
Robinson, Alexander and Armstrong committed an armed robbery of a T-Mobile store located at 10730 Eastex Freeway on Sept. 27, 2015. Armstrong had entered the store brandishing a firearm, while Robinson and Alexander waited in the getaway vehicle. U.S. currency and cellular phones were taken.
Three days later, Jenkins, Henderson, Armstrong, Durden and Alexander robbed the El Mexsal Taqueria located at 5797 North Sam Houston. Henderson, Cauley and Armstrong ordered the employees and customers to the ground at gunpoint, while Durden and Jenkins drove getaway cars. Alexander acted as a lookout during the robbery.
Robinson, Jenkins, Adams, Henderson, Andrews and Alexander then committed the armed robbery at the Wing Stop restaurant located at 10749 North Freeway on Oct. 2, 2015. Henderson entered the store with a gun drawn. When an did not immediately get down on the ground, Henderson shot him, causing permanent bodily injuries. Andrews and Adams were inside the restaurant during the robbery, while Robinson, Alexander and Jenkins sat outside acting as lookouts and the getaway driver. Alexander disassembled the firearm after the shooting and threw pieces out of the car window as they fled the scene.
Finally, Armstrong, Durden and Alexander then robbed Movie Magic at 6520 Airline on Oct. 9, 2015. Armstrong robbed the store at gunpoint. As they fled the scene and Durden drove the getaway car, Alexander fired his gun at a civilian who was chasing the robbers. Armstrong attempted to fire at the civilian but his gun jammed.
The case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
The cases are brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
The Bureau of Alcohol, Tobacco and Firearms conducted the investigation in conjunction with the Houston Police Department and Harris County Sheriff’s Office. Assistant U.S. Attorneys Richard Hanes and Heather Winter are prosecuting the case.
Tuesday 12 March 2019
Williamston Man Sentenced to 10 Years in Federal Prison for Felon in Possession ChargeRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina announces today, that Senior United States District Malcolm J. Howard sentenced ANTONIO CLARENCE DAUGHTRIDGE 33, of Williamston to 120 months’ imprisonment, followed by 3 years of supervised released, and a $2,500 fine.
On November 21, 2017, DAUGHTRIDGE was named in a Six-Count Second Superseding Indictment that was returned by a federal grand jury sitting in the Eastern District of North Carolina. DAUGHTRIDGE was charged with possession with intent to distribute a quantity of 3-4 methlylenedioxymethemphetamine and a quantity of cocaine, possession of a firearm in furtherance of a drug trafficking crime, two counts of possession of a firearm by a felon and one count of possession with intent to distribute a quantity of cocaine base (crack). On December 3, 2018, DAUGHTRIDGE pled guilty to possession of a firearm by a felon.
On March 8, 2015 officers with the Wilson Police Department were working off-duty at Oscar’s Night Club in Wilson when they were approached by an unknown female, stating that DAUGHTRIDGE was in possession of a firearm and had pointed it at her. Officers approached the vehicle that the woman stated DAUGHTRIDGE occupied, had the driver put the car in park and gave commands to DAUGHTRIDGE to show his hands. DAUGHTRIDGE was not compliant with the commands and officers pulled him from the vehicle. Once out of the vehicle and arrested, officers observed and seized a firearm underneath the passenger seat. During the search of DAUGHTRIDGE’s person, officers seized what was believed to be 4 ecstasy pills and 18 packets of cocaine.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought using the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violence crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Nash County Sheriff’s Office, Wilson Police Department, Greenville Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney James Kurosad prosecuted the case for the government.
Union County, New Jersey, Man Charged with Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A Union County man was arrested today on a charge of distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Jeffrey Shreve, 35, of Scotch Plains, New Jersey, was arrested at his home by agents of the Department of Homeland Security, Homeland Security Investigations (HSI). He is charged by complaint with one count of distributing child pornography. Shreve made his initial appearance today before U.S. Magistrate Judge James B. Clark III in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Shreve used peer-to-peer file sharing software to seek and obtain images of child sexual abuse, including images of prepubescent children.
The charge of distributing child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of HSI, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s charges.
The government is represented by Counsel to the U.S. Attorney Caroline Sadlowski of the U.S. Attorney’s Office in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Twenty-six charged in series of federal indictments for drugs, illegal firearmsRead the Press Release
AUGUSTA, GA: Twenty-six people, including associates of a violent criminal street gang, have been indicted on drugs and firearms charges after a series of investigations in Georgia and South Carolina.
The arrests in Operation Gunsmoke were announced Tuesday, March 12, in a joint press conference held at the Aiken Department of Public Safety J. Carrol Busbee Headquarters by the United States Attorneys for the Southern District of Georgia and the District of South Carolina.
The investigations were initiated by the Regional Anti-Gang Enforcement (RAGE) Task Force of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. It began in 2017 as an investigation of a member of the Bloods criminal street gang who is alleged to have coordinated continued criminal activity while being held in the Aiken County Detention Center awaiting retrial for murder in a 2008 drug-related home invasion.
From 2017 to the present, ATF agents in Georgia and South Carolina identified multiple targets in the investigation. Nine were named in 25 criminal charges listed in three separate indictments by a federal grand jury in the Southern District of Georgia, while 17 additional defendants have been indicted in the South Carolina District.
The defendants indicted in Georgia are:
George Edward Powell, 51, of Blythe, charged with Conspiracy to Distribute Methamphetamine, and multiple counts of Possession of a Firearm by a Convicted Felon and Distribution of Methamphetamine;
Keldrick Demonta Streetman, 36, of Augusta, charged with Conspiracy to Distribute Methamphetamine, Distribution of Cocaine and Distribution of Methamphetamine;
Jermarce Antonio Smith, 32, of Augusta, charged with Conspiracy to Distribute Methamphetamine and Distribution of Methamphetamine;
Brandon Jermal Jenkins, 29, of Augusta, charged with Conspiracy to Distribute Methamphetamine and Distribution of Methamphetamine;
Carl Walker, 56, of Augusta, charged with Conspiracy to Distribute Methamphetamine, and multiple counts of Distribution of Methamphetamine and Possession of a Firearm by a Convicted Felon;
Gwendolyn Johnson-Hill, 53, of Augusta, charged with Conspiracy to Distribute Methamphetamine and Distribution of Methamphetamine;
John Willie Powell, 39, of Augusta, charged with Conspiracy to Distribute Methamphetamine and multiple counts of Distribution of Methamphetamine;
Ziquane Sandford, 21, of Hephzibah, charged with Conspiracy to Engage in the Business of Dealing in Firearms Without a License, False Statements in Acquisition of Firearms, Engaging in the Business of Dealing in Firearms Without a License, Possession of an Unregistered Short-Barreled Shotgun, and False Statements Concerning Information Kept by Firearms Dealer; and,
Jacquetta Yarbray, 23, of Hephzibah, charged with Conspiracy to Engage in the Business of Dealing in Firearms Without a License, False Statements in Acquisition of Firearms, and False Statements Concerning Information Kept by Firearms Dealer.
The 17 defendants charged in South Carolina are:
Ronald Gartrell, a/k/a “RJ,” 33, of Aiken, charged with Conspiracy to Distribute Cocaine, Crack Cocaine, and Methamphetamine, multiple counts of Distribution of Crack Cocaine, and Possession of a Firearm by a Convicted Felon;
Heather Collins, 42, of Aiken, charged with Conspiracy to Distribute Cocaine, Crack Cocaine, and Methamphetamine, and multiple counts of Distribution of Methamphetamine and Crack Cocaine;
Cornelious F. McKie, 42, of Aiken, charged with Conspiracy to Distribute Cocaine, Crack Cocaine, and Methamphetamine, and Possession with Intent to Distribute Cocaine, Crack Cocaine, and Methamphetamine;
Reihn Dracon Jennings, a/k/a “Red,” 28, of Aiken, charged with Conspiracy to Distribute Cocaine, Crack Cocaine, and Methamphetamine, Distribution of Crack Cocaine, multiple counts of Possession of a Firearm by a Convicted Felon, and Using and Carrying a Firearm During and In Relation to and in Furtherance of a Drug Trafficking Crime;
Christopher Johnson, a/k/a “Crip,” 32, of Aiken, charged with Conspiracy to Distribute Cocaine, Crack Cocaine, and Methamphetamine, Distribution of Crack Cocaine, and multiple counts of Possession of a Firearm by a Convicted Felon;
Quinton De’Shaun White, a/k/a “Q,” 29, of North Augusta, charged with Conspiracy to Distribute Cocaine, Crack Cocaine, and Methamphetamine, Distribution of Methamphetamine, and Using and Carrying a Firearm During and In Relation to and In Furtherance of a Drug Trafficking Crime;
Kevin D. Sheppard, a/k/a “Bean O”, 35, of Jackson, charged with Conspiracy to Distribute Cocaine, Crack Cocaine, and Methamphetamine, multiple counts of Possession of a Firearm by a Convicted Felon, Using and Carrying a Firearm During and In Relation to and In Furtherance of a Drug Trafficking Crime, and Dealing in Firearms without a License;
Benjamin Roper, 42, of Aiken, charged with Possession of a Firearm by a Convicted Felon, and Dealing in Firearms without a License;
Jerome Morris Simmons, 38, of Aiken, charged with Distribution of Cocaine, Possession of a Firearm by a Convicted Felon, Using and Carrying a Firearm During and In Relation to and In Furtherance of a Drug Trafficking Crime, and Dealing in Firearms without a License;
Antonio Maurice Scrivens, a/k/a “Bucko,” 34, of Aiken, charged with Possession of a Firearm by a Convicted Felon, Using and Carrying a Firearm During and In Relation to and In Furtherance of a Drug Trafficking Crime, and Dealing in Firearms without a License;
Keith Williams, 29, of Beech Island, charged with Conspiracy to Distribute Methamphetamine, Distribution of Methamphetamine, Using and Carrying a Firearm During and In Relation to and In Furtherance of a Drug Trafficking Crime, and Dealing in Firearms without a License;
Larry Thomas, 20, of Aiken, charged with Conspiracy to Distribute Methamphetamine, Distribution of Methamphetamine, Using and Carrying a Firearm During and In Relation to and In Furtherance of a Drug Trafficking Crime, and Dealing in Firearms without a License;
Charlie Edward Carter, 31, of Beech Island, charged with Distribution of Methamphetamine, Possession of a Firearm by a Convicted Felon, and Dealing in Firearms without a License;
Rudolph Keith Scott, 27, of Beech Island, charged with Distribution of Methamphetamine;
Ray Hampton Baughman, 48, of New Ellenton, charged with Possession of a Firearm by a Convicted Felon;
Xavier Mathaney, 26, of Aiken, charged with Possession of a Firearm by a Convicted Felon; and
Rashad Lundy, 27, of Aiken, charged with Possession of a Firearm by a Convicted Felon.
“Our federal, state, and local law enforcement agencies and prosecutors continue our relentless and unwavering effort to identify, arrest, and prosecute those who threaten the safety of our neighborhoods,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “City limits, county lines, and state borders are no barrier to the professionals who fight tirelessly to eliminate drug-dealers and illegal firearms from our communities.”
“We will not stand by and let violent criminal enterprises continue victimizing our communities,” said South Carolina District U.S. Attorney Sherri A. Lydon. “The U.S. Attorney’s Office in South Carolina is locking arms with our law enforcement partners, and we will spare no resource to take back our neighborhoods from criminal actors who are mixing violence and illegal drug distribution. I am proud to stand with our federal, state, and local partners, and the U.S. Attorney’s Office in the Southern District of Georgia, and I applaud their excellent work in these cases.”
“ATF will continue to dedicate federal resources in conjunction with those crucial law enforcement contributions of local agencies to the pursuit of eradicating and forestalling criminal gang activity in Augusta, Ga., and its surrounding areas,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the ATF.
Agencies involved in the investigation in Georgia include the ATF; U.S. Marshals Service; Georgia State Patrol Aviation; Georgia Department of Community Supervision; Richmond County Sheriff’s Office; Burke County Sheriff’s Office; the Augusta Judicial Circuit District Attorney’s Office; and the U.S. Attorney’s Office for the Southern District of Georgia. Additional agencies in South Carolina involved in the investigation include the South Carolina Law Enforcement Division; the South Carolina Department of Probation, Pardon and Parole Services; the Aiken Department of Public Safety; the Aiken County Sheriff’s Office; the North Augusta Department of Public Safety; and the U.S. Attorney’s Office for the District of South Carolina. The Wheeling, W.V., Police Department and Wheeling Satellite Office of the ATF also participated in the investigation.
An indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
The cases in Georgia are being prosecuted by Assistant United States Attorney Tara Lyons and Special Assistant United States Attorney Michael Marchman.
Torrington Man Involved in Kickback Scheme Sentenced to 18 Months in Federal Prison for Tax EvasionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SERAFINO CANINO, 53, of Torrington, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 18 months of imprisonment, followed by three years of supervised release, for tax evasion.
According to court documents and statements made in court, Canino was employed by, and had an ownership interest in, Innovative Concepts Corporation (“ICC”), a company that manufactured and distributed small power and hand tools. ICC contracted with factories in Asia through intermediaries located in Taiwan. The intermediaries negotiated with the factories in Asia, ensured the shipment of manufactured products to ICC, and invoiced ICC for the manufacturing of its products.
From 2008 through 2011, Canino engaged in fraudulent billing using two of ICC’s intermediaries in Taiwan. Canino instructed the intermediaries to charge ICC an inflated price and kick back the overage to Canino using overseas bank accounts and an overseas corporate entity. Through this scheme, Canino improperly received more than $633,000 in income. Canino failed to disclose this illegal income to his accountants who prepared his federal tax returns, and he failed to report the income on his 2008, 2009, 2010 and 2011 tax returns. The total tax loss to the Internal Revenue Service was $186,358.
Judge Underhill ordered Canino to cooperate with the IRS to pay more than $430,000 in back taxes, interest and penalties.
On September 24, 2018, Canino pleaded guilty to one count of tax evasion.
Canino is required to report to prison on June 5, 2019.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Susan L. Wines.
Topeka Man Sentenced for Robbing Credit UnionRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced today to five years in federal prison for robbing a local credit union, U.S. Attorney Stephen McAllister said.
Robert Charles Frazier, 63, Topeka, Kan., pleaded guilty to one count of robbery. In his plea, he admitted that on Aug. 20, 2018, he robbed the Azura Credit Union at 1129 S. Kansas Avenue in Topeka. He told a teller, “This is a robbery. Give me your twenties, fifties and hundreds.” After receiving the money, he left the building and sat down on a nearby wall. An off-duty Topeka police officer working security arrested him.
McAllister commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Three defendants and an India-based call center indicted in phone scam targeting U.S. victimsRead the Press Release
ATLANTA – Mohit Devendrabhai Sharma, Julliette Belle Carter, Kunal Jagdishbhai Sharma, and a call-center named Skyz International Outsourcing BPO have been indicted for their alleged involvement in a transnational criminal organization that victimized United States residents through a tele-fraud scheme that led victims to believe they owed taxes and fees to the Internal Revenue Service. Julliette Belle Carter was arrested in Canada pursuant to an extradition request. In connection with the scheme, two other defendants and a call center in India were also charged for their alleged involvement.
“IRS phone schemes profit by victimizing United States residents, including vulnerable members of our community,” said U.S. Attorney Byung J. “BJay” Pak. “This indictment and the arrest in Canada demonstrate our commitment to identifying and prosecuting those who perpetuate phone scams on our citizens no matter where the perpetrators are located.”
J. Russell George, the Inspector General for the Treasury Inspector General for Tax Administration (TIGTA) advised that “since 2013, IRS impersonation scams have been on a relentless path, claiming more than 15,000 victims who have lost upwards of $74 Million to the scammers. Today’s unsealed indictment makes clear that TIGTA will continue to be just as relentless in our pursuit of individuals who fraudulently represent themselves as IRS officials in order to extort money from taxpayers. We will not back down from our pursuit of these criminals, and will continue to work with all law enforcement partners to bring them to justice.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The indictment alleges that the defendants were involved in a sophisticated international telephone scheme. Using lists of U.S. residents’ personal identifiable information, co-conspirators allegedly called potential victims while impersonating officials from the Internal Revenue Service.
The callers would then threaten potential victims with prosecution or arrest if they did not pay alleged tax debts immediately. After the victims agreed to pay, the callers would instruct the victims to send the money electronically using banks or money transmitters, such as MoneyGram, to defendants Mohit Devendrabhai Sharma, Julliette Belle Carter, and others. Victims, including residents of Georgia, believed the threats and sent money. Defendants Mohit Devendrabhai Sharma and Julliette Belle Carter retrieved the fraud proceeds from various MoneyGram locations in states such as Illinois, Ohio, Michigan, and Wisconsin.
The indictment charges Mohit Devendrabhai Sharma, Julliette Belle Carter, Kunal Jagdishbhai Sharma, and Skyz International Outsourcing BPO with conspiracy to commit wire fraud and wire fraud. The indictment also charges Mohit Devendrabhai Sharma and Julliette Belle Carter with conspiracy to commit money laundering.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Treasury Inspector General for Tax Administration.
Assistant U.S Attorneys Jolee Porter and Jeffrey A. Brown, Deputy Chief, Complex Fraud Section, are prosecuting 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.
Suffolk Man Sentenced to Prison for Distributing FentanylRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to more than 11 years in prison for his role in a heroin and fentanyl distribution conspiracy that resulted in an overdose death.
According to court documents, Christopher Allen Bardall, 34, sold at least 550 grams of fentanyl, which could translate to approximately 5,500 individual doses. He did so as a part of conspiracy with Michelle Best, whose drugs killed one young woman, K.R., and caused several other non-fatal overdoses. Best was sentenced on March 14 to 30 years in prison.
Bardall was a street dealer who distributed fentanyl, supplied by Best, directly to K.R. Bardall knew the fentanyl he was dealing was strong and that it had resulted in multiple overdoses by clients of his who used it. On Dec. 17, 2017, within hours of K.R.’s coma and death, officers from the Virginia Beach Police Department located Bardall and arrested him after a vehicle and foot pursuit.
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, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorneys John F. Butler and Andrew C. Bosse prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-147-3.
South Bend Man Convicted Following 2-Day Jury TrialRead the Press Release
SOUTH BEND – Joshua Banks, age 31, of South Bend, Indiana was convicted of being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
U.S. District Court Judge Jon E. DeGuilio, presided over this 2-day trial.
According to documents in this case, on about October 5, 2018, Mr. Banks possessed a .357 caliber revolver after one or more felony convictions. On October 4, 2018 a vehicle was reported stolen. On October 5, 2018, South Bend Police Officers located that stolen vehicle parked and unoccupied. Around that same time, Banks was walking near the vehicle with a backpack and a gas can. As officers approached Banks fled on foot. He was caught and the backpack was found nearby. Also nearby, officers found the firearm which had been stolen from a Warsaw, Indiana, firearms dealer in September 2018.
Sentencing of Mr. Banks has been set for June 12, 2019.
The case was investigated by the ATF with the assistance of the South Bend Police along with the Kosciusko County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Joel R. Gabrielse.
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Solar Companies and Corporate Officer Ordered to Pay over $5 Million Relating to Allegations They Defrauded A Renewable Energy ProgramRead the Press Release
DENVER – The United States obtained judgments against two companies and an individual officer of those companies relating to allegations that they violated the False Claims Act when they submitted applications to obtain payments from the U.S. Department of the Treasury for renewable energy projects.
Under a program created by the American Recovery and Reinvestment Act of 2009, companies could apply to get reimbursements for up to 30 percent of the costs they incurred in initiating and placing into service “renewable energy properties,” such as solar and wind projects. Companies submitted applications for these payments to the National Renewable Energy Laboratory (NREL) in Golden, Colorado. The funds for the reimbursement came from Treasury Department funds. Those funds were set aside under section 1603 of the 2009 Act, under a program commonly known in the renewable energy industry as the 1603 Program.
Defendant New World Renewable Energy Leasing, Inc. (New World) was involved in solar projects across several states, including Colorado. It had a related shell company, Infinergy Solar and Wind, Inc. (Infinergy). Defendant Murray Hambrick was an officer of both companies.
On September 14, 2017, the United States filed a complaint in federal district court in Colorado alleging that Infinergy, New World, and Hambrick had obtained payments from this program by using false or fraudulent statements. The United States alleged that, rather than submit to Treasury and NREL its true cost in the projects, Infinergy engaged in a sham sale of the projects to New World. Through the sham sale, Infinergy attempted to artificially inflate the costs of the projects. New World, in turn, submitted these false claims to Treasury and NREL. In 41 instances, New World obtained 1603 funds to which it was not entitled. Murray Hambrick orchestrated the fraud.
That lawsuit has now been resolved by judgments requiring the defendants to pay more than $5 million. New World and Infinergy failed to appear in court to defend the case, and on July 23, 2018, Judge Raymond P. Moore entered default judgment for the United States against the corporate defendants in the amount of $5,055,467. Hambrick litigated the case, then filed for bankruptcy. To resolve the United States’ claims against him, Hambrick agreed to a non-dischargeable judgment of $225,500. This judgment was approved by the Bankruptcy Court for the Western District of Texas on March 6, 2019.
“This program had important goals: jump-starting the economy at a time of crisis, and helping companies that move our renewable energy industry forward. Taxpayers paid for that program. Companies and individuals who lie to take advantage of government programs like this one will face consequences,” said U.S. Attorney Jason Dunn.
“The U.S. Department of the Treasury Office of Inspector General would like to thank the U.S. Attorney’s Office and the U.S. Department of the Treasury for their hard work and partnership on this case and previous cases involving the American Recovery and Reinvestment Act. This settlement reinforces the commitment of the Treasury OIG to pursue cases against those who defraud the U.S. Treasury Department and misuse public funds,” said U.S. Department of the Treasury, Office of Inspector General Eric Thorson.
This matter was investigated by the U.S. Department of the Treasury’s Office of Inspector General. It was handled by Assistant U.S. Attorneys Zeyen Wu and Andrea Wang.
Silver Spring Man Convicted After Five-Day Federal Trial of Bank Fraud Conspiracy and Aggravated Identity Theft with Losses of Hundreds of Thousands of DollarsRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Emmanuel Kusi Appiah, a/k/a Manny, age 47, of Silver Spring, Maryland, today for a years-long bank fraud conspiracy with losses of hundreds of thousands of dollars.
The jury’s guilty verdict was announced by United States Attorney for the District of Maryland Robert K. Hur; Chief Robert D. MacLean of the U.S. Park Police; and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service.
According to the evidence presented at his five-day trial, from June 2013 through March 2018, Appiah committed a bank fraud scheme that defrauded individuals and financial institution victims of several hundred thousand dollars.
Specifically, the trial evidence proved that Appiah conspired with others to open bank accounts at 10 different financial institutions using the stolen identities of at least five individual victims, and under the business names of five shell corporations, including Global Tax Services Incorporated, Merchandise Services Incorporated, Imperial Pipe Incorporated, SJ Metal Incorporated, and Morgan Incorporated. Appiah and his conspirators then used those fraudulent accounts to deposit stolen and altered business checks, convenience checks, and tax refunds. Witnesses testified that Appiah then withdrew the fraudulent proceeds in cash, transferred the proceeds to other fraudulent accounts, or laundered the proceeds through the purchase of money orders, which Appiah and others used for their personal benefit.
The government is also seeking restitution in the full amount of the victims’ losses.
Appiah faces a maximum sentence of 30 years in prison for conspiracy to commit bank fraud and for each of four counts of bank fraud; and a mandatory two years in prison, consecutive to any other sentence imposed, for each of two counts of aggravated identity theft. U.S. District Judge Theodore D. Chuang has scheduled sentencing for June 1, 2019, at 9:30 a.m.
United States Attorney Robert K. Hur commended the U.S. Park Police and the U.S. Postal Inspection Service for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Burden H. Walker, who are prosecuting the case.
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Shelby County Man Sentenced for Drug and Firearm OffensesRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on March 7, 2019, Andrew Joseph Nielsen, age 30, was sentenced by United States Senior District Court Judge Robert W. Pratt for Possession with Intent to Distribute Methamphetamine and Possession of a Firearm During a Drug Trafficking Crime. Nielsen was sentenced to 180 months in prison to be followed by a term of supervised release for five years.
In April 2018, Nielsen was stopped by a Shelby County Deputy for speeding after trying to elude the deputy. In a search subsequent to the stop, methamphetamine and marijuana were found on Nielsen, along with baggies and scale in the vehicle. After further investigation, Shelby County Deputies and the fire department executed a controlled burn in the area of the stop and located a Phoenix Arms HP22 and a magazine with four rounds in it.
This case was investigated by the Shelby County Sheriff’s Department, Pottawattamie County Sheriff’s Department and Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Sawyer County Woman Sentenced to 4 Years for Methamphetamine DistributionRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Tabatha Case, 32, Stone Lake, Wisconsin, was sentenced last week by U.S. District Judge William Conley to four years in federal prison for possessing methamphetamine with intent to distribute. Case pleaded guilty to this charge on January 3, 2019, and was sentenced on March 8.
The government’s investigation revealed that Case regularly traveled to Minnesota between 2016 and 2018 to purchase large amounts of methamphetamine. Case transported the methamphetamine back to Wisconsin and sold it in the Minong area.
During the investigation, Case sold methamphetamine to a confidential source working with law enforcement on six separate occasions. Case also sold over 20 firearms to methamphetamine suppliers and customers while she was actively dealing methamphetamine.
The charge against Case was a result of an investigation conducted by the Washburn County Sheriff’s Office, Sawyer County Sheriff’s Office, Wisconsin Department of Justice Division of Criminal Investigation, and Federal Bureau of Investigation. The prosecution of this matter was handled by Assistant U.S. Attorney Aaron Wegner.
San Jose Felon Sentenced to Six Years in Prison for Possessing A Firearm and AmmunitionRead the Press Release
SAN JOSE– Sean Finn was sentenced to 72 months in prison for being a felon in possession of a firearm and ammunition, announced United States Attorney David L. Anderson and U.S. Postal Inspection Service Inspector in Charge Rafael Nuñez. The sentence was handed down by the Honorable Beth L. Freeman, United States District Judge.
Finn, 38, of San Jose, Calif., pleaded guilty to the charge on June 19, 2018. According to the plea agreement, Finn admitted that on February 3, 2017, while in a department store in Santa Clara, he possessed a loaded Colt Mk IV .380 caliber semi-automatic firearm. The firearm had an obliterated serial number. Further, Finn admitted that on February 3, 2017, he was a convicted felon and was not eligible to possess a firearm. According to court documents, Finn also possessed at the time a stolen vehicle and about 400 pieces of stolen mail.
On April 13, 2017, a federal grand jury indicted Finn, charging him with being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g), and being in possession of stolen matter, in violation of 18 U.S.C. § 1708. Finn pleaded guilty to the first count and the second count was dismissed.
In addition to the prison term, Judge Freeman ordered Finn to serve a three-year term of supervised release to begin at the conclusion of his prison term.
Assistant United States Attorney Patrick Delahunty is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation by the United States Postal Inspector Services and the Santa Clara Police Department.
Rochester Felon Sentenced for Possessing A GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Marcus Lynch, 32, of Rochester, NY, who was convicted of possession of a firearm by a convicted felon, was sentenced to serve 30 months in prison by U.S. District Judge Charles Siragusa.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that the defendant went to the Firing Pin Shooting Range in the Town of Bergen to target shoot a rifle. Lynch was previously convicted in January 2008 of Robbery in the Third Degree; in August 2007 of Burglary in the Second Degree and Grand Larceny in the Fourth Degree; and in May 2007 of Burglary in the Second Degree. As a result, the defendant is legally prohibited from possessing a firearm.
Today’s sentencing is the result of an investigation by New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Robstown Man Receives Significant Sentence for Child Pornography ConvictionRead the Press Release
CORPUS CHRISTI – A 22-year-old resident of Robstown has been ordered to prison following his conviction of distributing child pornography, announced U.S. Attorney Ryan K. Patrick. Trey Escareno pleaded guilty Nov. 29, 2018.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Escareno to 170 months in prison. The sentence will be immediately followed by a lifetime term of supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Escareno will also be ordered to register as a sex offender.
The investigation into Escareno began when an undercover FBI agent entered an online chatroom and observed a user, later identified as Escareno, posting links. He had posted several items, all of which would automatically download large amounts of child pornography onto the computer of the user who clicked on them.
Agents later executed a search warrant in Robstown on Escareno’s residence. That resulted in the discovery of several items, including a cellular telephone on which a forensic analysis identified numerous images of child pornography. Law enforcement also uncovered evidence that Escareno had engaged in sexual contact with a minor relative.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Brittany L. Jensen prosecuted the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood or internet safety education, please visit the DOJ website.
Ringleader of ‘Palm Tree Bandits’ that Committed Nine Armed Bank Robberies in Six Months Sentenced to More than 32 Years in PrisonRead the Press Release
LOS ANGELES – A Las Vegas, Nevada man who led the “Palm Tree Bandits” armed robbery crew that victimized a series of bank branches in Los Angeles and Kern counties in 2016, netting more than $85,000 in stolen money, has been sentenced to 387 months in federal prison.
Gary Lamar Henry, a.k.a. “G-Thing,” 38, was given the 32-year, 4-month term on Monday by United States District Judge Robert H. Whaley.
After a six-day trial in May 2018, Henry was found guilty of his role in bank robberies that occurred in Brentwood, Santa Monica, San Marino, Arcadia, South El Monte, Bakersfield, Stevenson Ranch and Hacienda Heights. The jury found Henry guilty of 11 felonies: one count of conspiracy to commit armed bank robbery, seven counts of bank robbery and three counts of using a firearm in furtherance of a crime of violence.
Between April 14, 2016 and October 7, 2016, Henry contacted his co-conspirators, organized the crews, planned the robberies, and gave his co-conspirators the guns for the robberies, according to the evidence presented at trial. Henry watched outside the bank branches while he sent his armed co-conspirators inside to rob them. On some occasions, the co-conspirators pointed the firearms at bank employees and customers. Though no bank employees or customers suffered physical injuries during the robberies, Henry’s actions placed innocent lives in danger and inflicted considerable emotional trauma on the dozens of victims present during the robberies, according to court documents. In total, the robberies netted Henry and his co-conspirators $85,354, according to the government’s sentencing memorandum.
All of Henry’s co-defendants in the case already have been sentenced with three of them receiving prison terms in excess of 12 years.
This case was investigated by the Federal Bureau of Investigation and the Los Angeles County Sheriff’s Department.
This matter is being prosecuted by Assistant United States Attorney Jeffrey M. Chemerinsky and Joseph D. Axelrad of the Violent and Organized Crime Section.
Richmond Resident Pleads Guilty to Filing More Than 200 Fraudulent Income Tax ReturnsRead the Press Release
OAKLAND – Jeremy Orr pleaded guilty today in federal court in Oakland to wire fraud, announced United States Attorney David L. Anderson and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Kareem Carter. The plea was accepted by the Honorable Jeffrey S. White, U.S. District Judge.
According to his guilty plea, Orr, 36, of Richmond, Calif., admitted he devised a scheme to attempt to defraud the IRS of hundreds of thousands of dollars by filing false federal income tax returns. Orr obtained the personal identification information of individuals in and around the Bay Area and prepared false 2011 federal income tax returns in the names of those individuals. The false tax returns reported false wages, false education expenses, or both, which generated a fraudulent income tax refund. Orr electronically filed more than 200 false tax returns with the IRS resulting in claimed fraudulent tax refunds in the amount of $335,142.
A federal grand jury indicted Orr on January 15, 2015, charging him with four counts of wire fraud, in violation of 18 U.S.C. § 1343, and four counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. Today, Orr pleaded guilty to one count of wire fraud. If Orr complies with the plea agreement, the remaining counts will be dismissed at sentencing.
Orr has been in federal custody since his arrest in May of 2018. Judge White scheduled Orr’s sentencing hearing for May 28, 2019. The maximum statutory penalty for wire fraud is 20 years in prison and a fine of $250,000, however, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney José A. Olivera is prosecuting the case with the assistance of Larry Garland and Kathy Tat. The prosecution is the result of an investigation by the IRS-CI.
Restructuring of U.S. Attorney’s Office Leads to Significant Results in First YearRead the Press Release
District of New Jersey sees Increase in Prosecutions of both Violent and White Collar Crime
NEWARK, N.J. – One year after U.S. Attorney Craig Carpenito reorganized the structure of the U.S. Attorney’s Office for the District of New Jersey, overall criminal prosecutions have increased 51 percent, including a 65 percent jump in violent crime prosecutions, a 39 percent jump in narcotics related prosecutions, and a 15 percent jump in white collar crime prosecutions.
U.S. Attorney Carpenito’s goal in restructuring the office was to focus on areas of criminal and civil enforcement that would pay the biggest dividends in protecting New Jersey’s citizens. To that end, he established three new units in the Criminal Division (the Opioids, Violent Crime, and Cyber Units), increased the number of prosecutors by approximately 25 percent, doubled the size of the office’s paralegal corps, and implemented an “eLitigation” program to improve the way the office receives and processes information. One year later, the results of these improvements have been felt across the state of New Jersey.
“Over the past year, we have focused our efforts in gun and drug cases to target the most violent offenders,” U.S. Attorney Carpenito said. “The results have been very encouraging. Both Newark and Camden, for example, have seen significant drops in their respective crime rates, year-over-year, and both are at their lowest crime rates in 50 years. But statistics only tell part of the story. These results also have a positive impact on the lives of the people who live here.”
“The New Jersey U.S. Attorney’s Office’s responsiveness and flexibility in dealing with a shifting threat picture is a true model for progressive prevention,” FBI Special Agent in Charge Gregory W. Ehrie said. “The reorganization of critical assets has greatly increased prosecutorial efficiency, allowing New Jersey local, state, and federal law enforcement agencies to more effectively combat criminal and national security challenges. This is yet another example of the outstanding partnership U.S. Attorney Carpenito and his office have continually displayed.”
“U.S. Attorney Carpenito’s new vision for his office is bringing great results,” Susan A. Gibson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said. “His formation of the Opioid Abuse Prevention and Enforcement Unit sends a clear message that his office will prosecute those who choose to poison our communities with these very dangerous drugs. It is very reassuring for the men and women of DEA’s New Jersey Division to know the U.S. Attorney fully supports their investigations.”
“The safety and well-being of our citizens is a vital part of our mission,” ATF Newark Field Division Acting Special Agent in Charge Christopher Taylor said. “ATF, in partnership with the United States Attorney’s Office and our other federal, state and local law enforcement partners, will continue to focus our investigative resources on arresting and prosecuting the most violent criminals who use firearms to terrorize our communities and on those individuals who supply firearms to this criminal element. Protecting our neighborhoods from violent crime is a priority for the citizens of New Jersey and ATF.”
In the fiscal year that ended Sept. 30, 2017, the U.S. Attorney’s Office charged 467 defendants by indictment or information. By contrast, in the one year since U.S. Attorney Carpenito’s reorganization, the U.S. Attorney’s Office charged 707 defendants by indictment or information, an increase of 51 percent.
The U.S. Attorney’s Office leads “Violent Crime Initiatives,” partnerships among federal, state and local law enforcement, in two major areas in New Jersey, Newark and Jersey City. (A similar model, known as “C-4,” has been active in Camden for several years.) The VCIs collect information from more than a dozen law enforcement agencies, identify and prioritize the offenders posing the highest threats to public safety, and coordinate responses to those threats. Through the VCIs, the U.S. Attorney’s Office spearheads targeted investigations into individuals and organizations responsible for significant violent activity.
In October 2018, the U.S. Attorney’s Office announced two significant takedowns of violent drug gangs. On Oct. 11, the office charged 17 members, associates, and drug suppliers of the Famous Boyz – a subset of the Brick City Brims set of the Bloods street gang – which dealt significant quantities of heroin and crack cocaine in Newark and possessed and used firearms in furtherance of the gang’s drug trafficking activities. And on Oct. 25, the office charged 27 individuals who used violence as part of a conspiracy to distribute significant quantities of heroin and other narcotics in Trenton, and whose members possessed numerous firearms in furtherance of the gang’s activities.
The program has already shown success:
• Crime is down 15 percent in Newark from 2017 to 2018.
• Shooting incidents are down 30 percent in Newark between 2017 and 2018, and down another 39 percent between comparable periods in 2018 and 2019.
• The office has taken more than 100 new cases arising from Newark since the reorganization.
• The VCI program has recently started in Jersey City, and shooting incidents are down 69 percent in Jersey City between comparable periods in 2018 and 2019.
• Violent crime was down 18 percent in Camden from 2017 to 2018.“The remarkable progress we’ve had in Camden is built on many things,” Chief Thomson said. “Its foundation is establishing trust with the community, but also trust among local, state and federal law enforcement partners. We have that kind of trust with the U.S. Attorney’s Office in New Jersey, and U.S. Attorney Carpenito has worked hard to provide his Camden office with the people and resources needed to be valuable contributors to the law enforcement team we’ve assembled here.”
“One of the advantages of the reorganization of the U.S. Attorney’s Office is the targeting of resources on the mission of reducing violent crime,” Public Safety Director Anthony Ambrose said. “In 2018 the U.S. Attorney’s office handled over 120 cases that specifically helped Newark, resulting in more than 100 fewer shooting victims compared to 2017 and a 35 percent reduction in robberies.”
“Violent crime, specifically related to shootings and gun offenses, has been priority number one for the Jersey City Police Department, along with its essential partner, the Hudson County Prosecutor,” Jersey City Police Chief Michael J. Kelly said. “Now, with the ‘Violent Crime Initiative’ and the Office of U.S. Attorney Craig Carpenito fully engaged, Jersey City is about to become even safer. Partnership with the U.S. Attorney’s Office is a major win for all our neighborhoods in Jersey City and bad news for those that perpetuate violence in our community.”
Along with the renewed focus on violent criminal offenders, the U.S. Attorney’s Office has continued to pursue and prosecute white collar criminals, with the number of those defendants charged by information or indictment up 15 percent in the year since the reorganization was announced. In 2019 alone, the U.S. Attorney’s Office has announced charges in several significant white collar cases, including:
• The Jan. 15, 2019, unsealing of a significant indictment charging two Ukrainian men for their roles in a large-scale, international conspiracy to hack into the Securities and Exchange Commission’s (SEC) computer systems and profit by trading on critical information they stole.
• The Feb. 13, 2019, complaint charging Gene Levoff, a former senior attorney at a global technology company, with insider trading.
• The Feb. 14, 2019, indictment charging the former President and former General Counsel of Cognizant, a Fortune 500 company, with FCPA violations for allegedly bribing officials in India.“I could not be prouder of the way this office and our federal, state and local law enforcement partners have worked to implement these changes, or the results we have achieved so far,” U.S. Attorney Carpenito said. “It’s because we are a team, no one person or entity more important to the mission than any other, that we succeed. But challenges remain and we must remain vigilant if we hope to build on our success. As the current caretaker of this office, I’m proud to have the opportunity to continue the outstanding traditions of this place and law enforcement in New Jersey.”
Registered Sex Offender Pleads Guilty to Possessing Child PornographyRead the Press Release
PROVIDENCE - Michael Llorca, 48, of Providence, a registered sex offender previously convicted of rape of a child in Massachusetts in 1997, pled guilty in U.S. District Court in Providence today to possessing child pornography, announced United States Attorney Aaron L. Weisman, Rhode Island State Police Colonel James M. Manni, and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
According to information presented to the Court, on October 31 and November 1, 2017, members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force, using proprietary law enforcement software, observed that a device connected to an IP address associated with Llorca was sharing files of suspected child pornography via a Peer-to-Peer Network. A direct connection was made by law enforcement to a device connected to the IP address and numerous files of suspected child pornography were downloaded.
Separately, in November 2017, the ICAC Task Force received information from the National Center for Missing and Exploited Children that an individual in Rhode Island had sent sexually explicit text messages and illicit images to a minor female via a social media application with which users can communicate and share images via text messages. The ICAC Task Force determined that the IP address used to send the text messages and images belonged to Michael Llorca.
On January 18, 2018, members of the ICAC Task Force executed a federal court-authorized search of Llorca’s Providence residence and seized a laptop computer, among several other electronic storage devices. A forensic audit of the computer revealed at least 18 videos files containing child pornography.
Llorca, who has been detained in federal custody since his arrest, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on June 17, 2019.
Possession of child pornography in this matter is punishable by statutory penalties of 20 years imprisonment, with a mandatory minimum term of 10 years imprisonment; a fine of $250,000; a term of supervised release of life; and a $5,000 special assessment imposed as required by the Justice for Victims Trafficking Act in child sexual exploitation cases where the Court makes a finding that the defendant is not indigent.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.