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Monday 11 March 2019
Jefferson County Man Gets 14 Years in Prison for Meth OffenseRead the Press Release
Joshua A. Pearce, a/k/a "Josh," and "Junior," 32, of Mt. Vernon, Illinois, has been sentenced to 168 months imprisonment for his role in a methamphetamine conspiracy, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Pearce previously pled guilty to a one-count indictment charging him with conspiracy to distribute 50 grams or more of methamphetamine.
The indictment alleged that the offense occurred between 2017 and September 2018, in Williamson and Jefferson Counties. Evidence at the plea and sentencing hearings established that Pearce was involved with others in the unlawful distribution of ice. Ice is methamphetamine, which has a purity level of at least 80%. Pearce routinely transported dealer amounts of ice from Mt. Vernon to Herrin for distribution. At sentencing, the district court found that Pearce was responsible for the distribution of 1.7 kilograms of ice.
The investigation was conducted by the Southern Illinois Enforcement Group. The Mt. Vernon Police Department and Herrin Police Department assisted in the investigation.
This case was brought as part of Project Safe Neighborhoods (PSN), 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.
Inmate Sentenced to 6 Years in Prison for Making Threats to Harm Federal JudgeRead the Press Release
FRESNO, Calif. — U.S. District Judge Lawrence J. O’Neill sentenced Craig Shults, 52, of Huntington Beach, today to six years in prison for threatening to harm a federal judge, U.S. Attorney McGregor W. Scott announced.
Shults was convicted of this offense following a December 2018 jury trial.
According to court documents and evidence at trial, in 2016 at a federal prison in Taft, California, Shults, then an inmate, made threats to assault a federal judge with the intent to retaliate against the judge for presiding over a prior criminal case involving Shults. He made the threatening communications in retaliation for, among other reasons, being remanded to custody following a bond violation hearing, and being sentenced to a substantially longer prison sentence than Shults requested. Some of Shults’s threats were captured on a recording device and presented at trial.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Angela L. Scott and Henry Z. Carbajal prosecuted the case.
IRS Employee Facing Federal Theft and Fraud ChargesRead the Press Release
NASHVILLE, Tenn.- March 11, 2019 – Tracey R. Allison, 47, of Antioch, Tennessee, was indicted last week by a federal grand jury and charged with theft of government property; five counts of wire fraud; and five counts of aggravated identity theft, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Allison, employed by the IRS at its Franklin, Tennessee office, is accused of faking military duty orders in order to receive paid leave from her employer.
According to the indictment, Allison was discharged from the U.S. Army Reserve in August 2012 and enlisted in the Tennessee National Guard on July 5, 2018. The indictment alleges that while employed by the IRS, between November 2013 and October 2018, Allison regularly submitted forms used by the Department of the Army, to the Payroll and Personnel Systems Unit of the IRS, to record reserve duty and receive payment. Each form submitted bore the forged signature and Department of Defense identification number of Allison’s former commanding officer, who was actually retired and ceased supervising Allison in July 2013.
During the five-year scheme, the indictment alleges that Allison submitted approximately 70 fraudulent forms and collected paid military leave and other benefits totaling $22,864.24, even though she had no authorized military duty status for those dates.
If convicted, Allison faces up to 20 years in prison for each count of wire fraud; up to 10 years in prison for theft of government property; and a mandatory minimum of two years in prison for each count of aggravated identity theft; and a $250,000 fine.
This case was investigated by the Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Stephanie N. Toussaint is prosecuting the case.
An indictment is merely an accusation. A defendant is presumed innocent until proven guilty in a court of law.
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Husband and Wife Plead Guilty in Connection with Pain Clinic Pill Mill SchemeRead the Press Release
BIRMINGHAM – A Springville couple involved in a St. Clair County pill mill scheme entered dual guilty pleas today in federal court, announced U.S. Attorney Jay E. Town, Drug Enforcement Administration-Birmingham Acting Assistant Special Agent in Charge Andy Langan and Internal Revenue Service-Criminal Investigation Special Agent in Charge Thomas J. Holloman.
CINDY LOUISE HYCHE DUNN, 53, pleaded guilty to one count of conspiracy to distribute controlled substances outside the usual course of professional practice and not for a legitimate medical purpose and to one count of conspiracy to commit money laundering for purposes of promoting the pill mill scheme. Her husband, THOMAS MASON DUNN, 56, pleaded guilty to the same money laundering conspiracy. The couple entered their guilty pleas before U.S. District Judge R. David Proctor. A sentencing date has not been set.
From January 2012 through December 2015, Cindy Dunn ran a pain management clinic in Moody, Alabama operating under the name Cindy Dunn & Dr. Buckingham, M.D., Weight Loss Clinic and Pain Management (CDPM). CDPM was not a legitimate pain clinic. It was a pill mill churning out thousands of prescriptions for opioid painkillers. Thomas Dunn performed financial transactions on behalf of CDPM to further the pill mill scheme. He also received prescriptions for opioid painkillers from CDPM.
“This couple operated a pain management clinic with reckless disregard for patient safety,” U.S. Attorney Town said. “To those who continue to poison our communities by this illegal practice and enable the growth of the opioid crisis in our state, you will be caught, you will be prosecuted, and you will have a bed in federal prison.”
“This investigation demonstrates the fact that if you are a doctor in the state of Alabama and you are illegally prescribing controlled substances we will find you and you will pay a heavy price,” Acting Assistant Special Agent in Charge Langan said. “This is another example of the great teamwork between federal, state, and local law enforcement partners to positively impact the lives of the good people living in our communities.”
“Pill Mills continue to plague our communities as the illegal distribution of prescription drugs remains a profitable criminal enterprise,” Special Agent in Charge Holloman said. “IRS-CI pledges to follow the money to the profiteers and work with our partners to shut down these illegal operations. Today’s guilty pleas are a step forward in law enforcement’s efforts to address the prescription drug problem in our community”.
As part of their plea agreements, the couple will forfeit their Springville home to the United States. The agreement with Cindy Dunn stipulates a 10-year prison sentence. The agreement with Thomas Dunn stipulates a 30-month prison sentence. Judge Proctor accepted the couples’ guilty pleas today, but reserved decision on whether to accept the stipulated prison sentences until the couples’ sentencing hearings. The plea agreements entered by Cindy Dunn and Thomas Dunn with the United States are binding, meaning any party may withdraw if the court does not accept the stipulated prison sentences.
According to her plea agreement, as the owner and president of CDPM, Cindy Dunn ran its day-to-day operations, and hired and directed physicians and staff. Two doctors issued the majority of CDPM’s controlled substance prescriptions, neither were pain management specialists. John Ladd Buckingham was CDPM’s primary physician while Steven Bruce Hefter also issued prescriptions for CDPM at various times. CDPM attracted patients from all over Alabama and outside the state. Patients came from Huntsville, Muscle Shoals, Florence, and Mobile, Alabama. Patients also flocked to CDPM from Florida, Georgia, and Tennessee. CDPM received anywhere from forty to eighty patients in a single day.
CDPM typically did not treat patients with anything other than high doses of opioid painkillers, according to Cindy Dunn’s plea agreement. Prescribed opioids included fentanyl, hydrocodone, methadone, morphine, oxycodone, and oxymorphone. CDPM rarely, if ever, ordered diagnostic tests, such as x-rays or MRIs, to identify and potentially treat the source(s) of pain. Patients often received opioid prescriptions or dosage increases upon request. CDPM also issued prescriptions for a combination of drugs known as “the holy trinity,” which consists of an opioid painkiller, a muscle relaxer, and a benzodiazepine. The plea agreement states that this “cocktail” has a high potential for abuse and carries a significant risk of overdose.
According to her plea agreement, Cindy Dunn had no formal medical education, qualifications, or licensing, yet she directed, oversaw, and guided prescriptions for opioids and other controlled substances at CDPM. For example, Cindy Dunn allowed patients to continue receiving opioid prescriptions after failing multiple drug tests. She also permitted patients who admitted buying pills on the street and/or who had a history of drug abuse to receive opioid prescriptions. It further states that Cindy Dunn devised a system for pre-signing prescriptions in order to maximize revenue. CDPM staff wrote prescriptions, which the doctors signed far in advance of patient visits. The pre-signed prescriptions were then handed to patients in exchange for cash without the doctor seeing the patient. Cindy Dunn, Thomas Dunn, and others used the money generated through CDPM’s pill mill scheme to continue CDPM’s operations, according to both plea agreements.
“The Dunns had no business running a pain management clinic,” said Assistant United States Attorney Mohammad Khatib. “They harnessed the prescribing power of their physician co-conspirators for the sole purpose of making fast money. Their greed spread the opioid epidemic in Alabama and inflicted real damage on the legitimate medical community. For that, they must pay a very dear price.”
Doctor Hefter pleaded guilty for his involvement with CDPM in December 2017.
DEA and IRS-Criminal Investigation investigated the case, which Assistant U.S. Attorneys Mohammad Khatib and Robin Beardsley Mark are prosecuting.
Hershey Man Sentenced to More Than 12 Years in Prison on Bankruptcy Fraud and Loan Fraud ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Jay Jackson, age 59, formerly of Hershey, Pennsylvania, was sentenced to 145 months’ imprisonment and three years’ supervised release by U.S. District Court Judge Sylvia H. Rambo on multiple bankruptcy fraud, wire fraud, false statement, aggravated identity theft, and money laundering charges. Judge Rambo also ordered Jackson to pay $1,567, 275 in restitution and $3,000 in special assessments.
According to United States Attorney David J. Freed, Jackson pleaded guilty on November 3, 2017, to an Indictment charging him with twelve counts of wire fraud, five counts of bankruptcy fraud, nine counts of false bankruptcy declarations, and two counts of aggravated identity theft. The Indictment alleged Jackson defrauded his creditors, the Bankruptcy Court for the Middle District of PA, and his wife by filing seven Chapter 13 and 11 bankruptcy petitions, five of which under Jackson’s name, and two under his wife’s name without her knowledge or consent. The petitions contained false information regarding Jackson’s income, assets, and employment, and were filed in order to postpone multiple Sheriff’s sales of his Hershey residence. Jackson filed the last two petitions on June 3, 2015, and January 19, 2017, under his wife’s name after the Bankruptcy Court barred Jackson from filing any further petitions for two years on May 28, 2015.
Thereafter, Jackson also pleaded guilty on March 13, 2018, to a two count Information charging him with wire fraud and money laundering. The Information alleged Jackson perpetrated a bogus business venture, loan fraud scheme between 2007 and 2017 that defrauded 22 victims out of approximately $1.7 million. According to the Information, Jackson registered a corporation by the name of INTEX Building Materials Group, Inc. (INTEX BMG) with the Pennsylvania Department of State in 2007, listing himself as the sole shareholder and Chief Executive Officer of the company. Jackson defrauded his victims by convincing them he had the backing of Brookstone Partners, a New York City capital investment company, to lend him millions of dollars to acquire companies that manufactured building products. Jackson induced his victims into giving him loans to pay for his personal expenses, including his children’s college tuition, while they awaited consummation of the deal with Brookstone. Jackson promised his victims huge returns on what were supposed to be short-term loans. Jackson also provided copies of what he claimed to be e-mails from Brookstone principals that falsely represented the INTEX BMG deal was real.
In reality, INTEX BMG was a “paper” company that did not hold any significant assets, didn’t have any paid employees, and never generated any income. In order to deceive his victims, Jackson established bogus email accounts under the assumed identities of Brookstone principals and drafted fake e-mails from them. Jackson provided his victims a variety of explanations as to why the INTEX BMG did not go “live” in order to lull them into not taking action against him. Jackson would repeatedly blame the protracted delays upon the Internal Revenue Service (IRS), the U.S. Security and Exchange Commission (SEC), various state regulators and the Canadian government. Many of the victims of Jackson’s loan fraud scheme were from Central Pennsylvania.
“Thieves and fraudsters use many different methods to separate honest citizens and businesses from their hard-earned money, most often for no other reason than simple greed,” said U.S. Attorney Freed. “The brazen fraud in this case attempted to use the legal Bankruptcy process to continue to line his own pockets. I commend the fine work of our partners at IRS-Criminal Investigations and the FBI for achieving some measure of justice for Jackson’s victims.”
"The bankruptcy system is based on debtors fully disclosing their assets and liabilities,” said Guy Ficco, Special Agent in Charge of IRS Criminal Investigation. “When someone intentionally files a petition with the bankruptcy court that contains false information, they are engaging in criminal activity. The Special Agents of IRS Criminal Investigation will continue working with our law enforcement partners on these types of cases to help preserve the integrity of the bankruptcy system."
"Michael Jay Jackson blatantly abused the bankruptcy process," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "By breaking the law in an attempt to hide, and hold on to, his assets, he's instead cost himself dearly, losing his very freedom. The FBI will continue to investigate and hold accountable those who engage in such financial fraud."
The case was investigated by the Harrisburg Offices of the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.
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Harrison County man indicted on firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kevin Alexander Miske, of Clarksburg, West Virginia, was arrested today and had his initial appearance in a federal courtroom, United States Attorney Bill Powell announced.
Miske, age 26, was indicted by a federal grand jury sitting in Clarksburg on March 5, 2019. Miske was indicted on one count of “Unlawful Possession of a Firearm” and one count of “Possession of a Firearm with an Obliterated and Altered Serial Number.” Miske, having been previously convicted of a felony, is accused of having a .357 magnum revolver with an altered serial number in December 2018 in Harrison County.
Miske faces up to 10 years incarceration and a fine of up to $250,000 for the unlawful possession count and faces up to 5 years incarceration and fine of up to $250,000 for the serial number count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarksburg Police Department investigated. The United States Marshal Service made the arrest.
U.S. Magistrate Judge Michal John Aloi presided.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Great Falls man sentenced for illegally possessing firearmRead the Press Release
GREAT FALLS—A federal judge today sentenced Great Falls resident Marcus Wayne Logan, 44, to 14 months in prison and to three years of supervised release for illegally possessing a firearm, U.S. Attorney Kurt Alme said.
Logan pleaded guilty in October to being a prohibited person in possession of a firearm.
U.S. District Judge Brian M. Morris presided.
An investigation found that the Montana State Prison released Logan on Feb. 26, 2018 and directed him to report to the probation and parole office in Great Falls. Logan, who had two prior felony convictions and was prohibited from possessing firearms, signed a Firearms Regulation form acknowledging he was prohibited from possessing firearms. Logan checked in with probation but failed to show up for subsequent appointments. A warrant was issued for his arrest.
Law enforcement ultimately arrested Logan in a traffic stop on April 18. In a search of the vehicle, a probation officer found a loaded, .45-caliber semi-automatic pistol in a backpack belonging to Logan.
Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department.
The 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.
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Former West Covina Resident Pleads Guilty to Advertising Pornographic Images of Children on Russian Photo-Sharing WebsiteRead the Press Release
LOS ANGELES – A former West Covina resident pleaded guilty today to knowingly creating and publishing an advertisement that sought to exchange sexually-explicit images of children on a Russian photo-sharing website frequently used to trade child pornography.
Christopher Clay Roman-Tuttle, 38, now of Spokane, Washington, who told the court he now goes by the name Christopher Clay Tuttle, faces a 15-year mandatory minimum prison sentence and a statutory maximum sentence of 30 years’ imprisonment for his guilty plea to one felony count of advertising child pornography. United States District Judge Percy Anderson scheduled a May 20 sentencing hearing.
According to Roman-Tuttle’s plea agreement, in March 2015 he created an account with a Russian photo-sharing website and used this account to knowingly publish an advertisement seeking to receive, exchange, and distribute child pornography. Roman-Tuttle admitted to posting two photo albums: one that featured non-pornographic images of a minor known to him, and one password-protected album that contained pornographic images of unknown child victims. Roman-Tuttle advertised these images by posting a statement, which read, in part, “preteens and tween’s [sic] in diapers is cool too. I’d love to meet up with a parent that wants to share their daughter (of course id make it worth their w[h]ile).”
In response to Roman-Tuttle’s advertisement, he received numerous emails over the course of two days from dozens of individuals seeking to exchange child pornography with him, the plea agreement states. Roman-Tuttle also admitted to sending and receiving images and videos of child pornography to many of these individuals, at times requesting child pornography videos depicting girls between 5 and 8 years old. In other emails, Roman-Tuttle described his desire to sexually abuse children, including the minor known to him, whom he admitted to having sexually abused in the past, according to his plea agreement. Roman-Tuttle also admitted to knowingly possessing more than 9,000 images and 330 videos of child pornography on his computer and on other devices, including images depicting the sexual abuse and exploitation of infants or toddlers. He also admitted to knowingly possessing a sexually explicit image of the minor known to him.
As part of his plea agreement, Roman-Tuttle will have to register as a sex offender, undergo counseling, and be subject to lifetime supervised release once he is out of federal prison.
This matter was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
This case is being prosecuted by Assistant United States Attorney Damaris Diaz of the Violent and Organized Crime Section.
Former Springfield Man Sentenced for Leading Scheme to Market Dietary SupplementsRead the Press Release
SPRINGFIELD, Mo. – A former Springfield, Mo., business owner was sentenced in federal court today for his role in leading a scheme with two Nixa, Mo., residents to market an all-natural male enhancement supplement that actually contained the same active ingredient found in Viagra.
“This criminal scheme involved thousands of individual acts of fraud over several years, and distributed misbranded and dangerous products throughout the United States,” said Tim Garrison, U.S. Attorney for the Western District of Missouri. “This placed the health of an untold number of individuals at risk, because the product actually contained dangerous levels of sildenafil – the active ingredient found in Viagra – more potent than what a person could obtain through a doctor’s prescription.”
“American consumers are put at risk when the true nature of ingredients for dietary supplements is hidden,” said Charles L. Grinstead, Special Agent in Charge, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to pursue and bring to justice those who jeopardize the public health.”
Michael S. Schindele, 44, of Jacksonville, Fla., was sentenced by U.S. Chief District Judge Beth Phillips to three years and one month in federal prison without parole. The court also ordered Schindele to forfeit $47,930, which represents his profit from the scheme.
On Aug. 15, 2018, Schindele pleaded guilty to one count of wire fraud and one count of delivering adulterated or misbranded food. Schindele, the owner and operator of Executive Image International, operated a website that sold dietary supplements and drugs to the general public. He worked through businesses owned and operated by co-defendants John G. Schindele, 42 (his brother), and Jennifer S. Travis, 46, both of Nixa, to sell dietary supplements, which they claimed contained only all-natural ingredients. John Schindele and Travis both pleaded guilty, in separate but related cases, and were each sentenced to five years of probation.
Among the many supplements sold by Michael Schindele was Silver Bullet, marketed as an “all-natural male performance enhancer,” an “Extreme Male Stimulant,” and a “dietary supplement.” In reality, Silver Bullet contained materially different ingredients than what was listed, including sildenafil, a synthetic pharmaceutical ingredient that was not disclosed to consumers purchasing the product.
Sildenafil is the active pharmaceutical that is commonly used in the erectile dysfunction drug Viagra. The labeling for Silver Bullet failed to provide adequate warnings about the use of a sildenafil-containing product, which is only legally available with a prescription from a doctor. Michael Schindele was not authorized or licensed to sell this pharmaceutical.
Michael Schindele’s misrepresentations resulted in him, Executive Image International, Schindele Enterprises, and Midwest Wholesale obtaining at least $150,000 from consumers. Michael Schindele, personally, received at least $47,930, which must be forfeited to the government.
Michael Schindele directed the purchase of sildenafil from a supplier in the People’s Republic of China. He directed hundreds, if not thousands, of mass mailings of misleading and fraudulent advertisements claiming the product was “all natural,” which included samples of the tainted products. He coordinated the sale of the tainted products through his brother, John Schindele, and Travis over several years. Michael Schindele also directed his brother to use the proceeds from these fraudulent sales to pay for his personal expenses and transfer the cash in order to conceal his involvement in the fraud.
After he moved to Jacksonville, according to court documents, Michael Schindele started another business to perpetrate the same criminal fraud. He hired another person in the state of Georgia to handle the mailings and distribution of the illegal product. The new operation fraudulently sold dangerous misbranded food products that contained sildenafil and tadalafil at higher than normal levels that a reasonable physician would initially prescribe. In fact, there is not a combination pill currently approved by the FDA that contains both drugs, as they are created by different manufacturers.
During the time of the fraud scheme, which operated from Oct. 11, 2011, through Jan. 6, 2014, Michael Schindele also pleaded guilty in a separate and unrelated case to the misdemeanor offense of introducing an unapproved animal drug. Schindele admitted that he sold heartworm tablets that were produced in Australia and had not been approved for sale in the United States, and which required a veterinarian’s prescription. Federal agents seized 1,368 doses of the heartworm tablets from Michael Schindele’s EZBody store in Springfield. Michael Schindele was sentenced for that offense on July 17, 2012, to one year of unsupervised probation.
According to court documents, Michael Schindele recruited his brother and Travis to become the face of the operation after he became aware of the government’s investigation into this earlier criminal enterprise.
According to his plea agreement, John Schindele fraudulently received $210,000 for the misrepresented and mislabeled dietary supplements from April 16, 2012, to July 8, 2015. According to her plea agreement, Travis fraudulently received $152,862 for the misrepresented and mislabeled dietary supplements from June 2, 2014, through Jan. 31, 2017.
These cases were prosecuted by Assistant U.S. Attorneys Nhan D. Nguyen and Patrick Carney. They were investigated by the U.S. Food and Drug Administration’s Office of Criminal Investigations (OCI).
Former Sheriff’s Deputy Sentenced to 87 Months for Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Peter Farnum, age 42, of Clifton Park, New York, was sentenced today to 87 months in prison, to be followed by a 20-year term of supervised release, for possessing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The sentence follows Farnum’s June 5, 2018 conviction, after a two-week jury trial, for possession of child pornography. The evidence at trial established that Farnum, a former sergeant with the Saratoga County Sheriff’s Office, possessed more than 1,000 image and video files on his family computer that contained child pornography. These included, among many others, image files that Farnum imported through the computer’s RealPlayer application while he conducted online research related to his position with the Sheriff’s Office and while his wife was in the hospital. Senior United States District Judge Norman A. Mordue presided over the trial and imposed today's sentence.
This case was investigated by the FBI and its Child Exploitation Task Force, with assistance from the Saratoga County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Wayne A. Myers. Former Assistant U.S. Attorney Joseph A. Giovannetti prosecuted the case to trial.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former Nevada Senate Majority Leader Pleads Guilty to Misusing $250,000 of Donor Money for Personal ExpensesRead the Press Release
LAS VEGAS, Nev. – Nevada State Senate Majority Leader Kelvin Atkinson, who resigned his position last week, pleaded guilty in federal court to a wire fraud scheme involving the misuse of at least $249,000 of donor money on personal expenses. Those expenses included operating a Las Vegas night club, payments to personal credit cards, and leasing a luxury car.
United States Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI Las Vegas Office, and Special Agent in Charge Tara Sullivan for the IRS Criminal Investigation made the announcement.
“In the Silver State, the vast majority of public officials serve with integrity. They serve others, not their own self-interests,” said United States Attorney Trutanich. “Public service is a public trust. And when federal law enforcement learn of potential violations of that trust, justice requires us to do our level best to conduct a fair and dispassionate inquiry into the facts.”
“Rooting out corruption is exceptionally difficult, but it is a top criminal priority for the FBI,” said Special Agent in Charge Rouse. “Public corruption erodes public confidence and undermines the strength of our democracy. The FBI, along with our law enforcement partners, will continue to aggressively investigate elected officials who choose to exploit the public’s trust for their personal gain.”
“Public corruption erodes the trust and confidence the public has for our elected officials,” said Special Agent in Charge Sullivan. “IRS Criminal Investigation will continue to investigate individuals who violate that trust.”
Before his resignation, Atkinson, 49, represented District 4. He was elected to Nevada State Senate in November 2012, having previously served in the Nevada State Assembly since November 2002. He was named the Senate’s Majority Leader in November 2018.
Atkinson admitted that, from at least January 2010 to about December 2017, he devised a scheme to mislead donors contributing to his campaign by falsely representing to them that he would use donations for lawful campaign purposes. But in reality, Atkinson misused contributions in his campaign account for personal expenses and not for legitimate campaign purposes.
According to the plea agreement and today’s court proceedings, the manner in which Atkinson withdrew the money, how he spent the money, where he spent it, the age of certain transactions, and his failure to keep adequate records, make Atkinson’s precise fraud amount presently indiscernible. In total, however, Atkinson admitted that he spent nearly $250,000 of unreported withdraws on personal expenses and not for legitimate campaign purposes. Atkinson’s personal spending of campaign funds included $100,000 in payments to his personal credit cards, $75,000 towards opening and operating a Las Vegas night club, and $20,000 on leasing a Jaguar Sports Utility Vehicle, among many other personal expenditures.
Atkinson remains out of custody pending sentencing, which is scheduled for July 11, 2019. The statutory maximum term of imprisonment for wire fraud is 20 years. He has agreed to pay $249,900 in restitution.
The case was investigated by the FBI and IRS Criminal Investigation. Assistant United States Attorney Daniel R. Schiess is prosecuting the case.
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Former Logan County Deputy Sheriff Pleads Guilty to Overtime FraudRead the Press Release
OKLAHOMA CITY – Former Logan County Deputy Sheriff DOYLE ALLEN BAKER, 31, of Weatherford, Texas, has pleaded guilty to theft from a federal transportation grant, announced Robert J. Troester of the U.S. Attorney’s Office.
On November 7, 2018, a federal grand jury indicted Baker for stealing more than $5,000 from federal grant funds administered by the Oklahoma Highway Safety Office ("OHSO"), part of the Oklahoma Department of Transportation. The National Highway Traffic Safety Administration, part of the U.S. Department of Transportation, provided these funds to OHSO, which passed them on to the Logan County Sheriff’s Office.
According to the indictment, as a Deputy Sheriff, Baker knew these federal funds could be used only to pay for employees working outside regular duty hours. From July to September of 2016, he allegedly submitted fraudulent timesheets that represented he worked overtime hours he did not in fact work. The indictment states he hid the fraudulent nature of more than $5,000 in overtime hours by submitting fake citations and warnings.
On March 7, 2019, Baker pleaded guilty to the indictment before U.S. District Judge Stephen P. Friot.
The maximum penalty that could be imposed as a result of this guilty plea is ten years in prison and a fine of $250,000. Baker could also face up to three years of supervised release and will be required to pay restitution. Sentencing will take place in approximately ninety days.
This case is result of an investigation by the U.S. Department of Transportation—Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Rozia McKinney-Foster.
Reference is made to public filings for further information.
Former KPMG Executive and Former PCAOB Employee Convicted of Wire Fraud for Scheme to Steal and Use Confidential PCAOB InformationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DAVID MIDDENDORF, who was the National Managing Partner for audit quality at the accounting firm KPMG LLP (“KPMG”), and JEFFREY WADA a former employee of the Public Company Accounting Oversight Board (the “PCAOB”), were convicted of wire fraud charges in connection with their scheme to defraud the PCAOB by obtaining, disseminating, and using confidential lists of which KPMG audits the PCAOB would be reviewing so that KPMG could improve its performance in PCAOB inspections.
U.S. Attorney Geoffrey S. Berman said: “As this trial revealed, David Middendorf and Jeffrey Wada were two links in a chain of corruption, where confidential PCAOB inspection information was taken at the behest of high-level executives at KPMG so they could cheat on inspections. This confidential information was critical to the PCAOB and its core mission of ensuring audit quality. As a unanimous jury found, the actions of Middendorf and Wada defrauded the PCAOB.”
According to the evidence presented during the trial:
The PCAOB is a nonprofit corporation overseen by the SEC that inspects the audit work performed by registered accounting firms (“Auditors”) with respect to the financial statements of publicly traded companies (“Issuers”). The PCAOB inspects the largest U.S. accounting firms on an annual basis. As part of the inspection process, the PCAOB chooses a selection of audits performed by the accounting firm for a closer review, commonly referred to as an inspection. Until shortly before an inspection occurs, the PCAOB does not disclose which audits are being inspected, or the focus areas for those inspections, because it wants to ensure that an Auditor does not perform additional work or modify its work papers in anticipation of an inspection. Following the completion of an inspection, the PCAOB issues an Inspection Report containing any negative findings or “comments” with respect to both the specific audits reviewed and the accounting firm more generally.
KPMG is one of the largest accounting firms in the world. In recent years, KPMG fared poorly in PCAOB inspections, and in 2014 received approximately twice as many comments as its competitor firms. By at least in or about 2015, KPMG was engaged in efforts to improve its performance in PCAOB inspections, including but not limited to recruiting and hiring former PCAOB personnel. At the time, MIDDENDORF was head of KPMG’s National Office, also known as the Department of Professional Practice (the “DPP”), which was broadly responsible for the quality of KPMG’s audits and KPMG’s performance in PCAOB inspections.
KPMG’s efforts to improve inspection results, however, were not limited to legitimate means. Instead, between 2015 and 2017, MIDDENDORF and others worked illicitly to acquire valuable confidential PCAOB information concerning which KPMG audits would be inspected in an effort to game the system and improve inspection results. For example, beginning in 2015, Brian Sweet, a former PCAOB employee who had joined KPMG, provided MIDDENDORF, Thomas Whittle, and others with the PCAOB’s confidential 2015 list of inspection selections, at MIDDENDORF’s request, so that the information could be used by MIDDENDORF, Whittle, and others, to improve KPMG’s performance on PCAOB inspections.
WADA was an Inspections Leader at the PCAOB, who was obligated to keep confidential the PCAOB’s nonpublic information. WADA joined the conspiracy in the fall of 2015 and began passing confidential information to KPMG. In March 2016, WADA provided Cynthia Holder, a KPMG employee, with confidential information on certain of the PCAOB’s 2016 inspection selections. Holder, in turn, provided the 2016 inspection selections to Sweet, who passed them to MIDDENDORF, Whittle, and others. MIDDENDORF, Whittle, Sweet, and others then agreed to launch a stealth program to “re-review” the audits that had been selected, and agreed to keep their stealth re-reviews within their “circle of trust.” In order to cover up their illicit conduct, other KPMG engagement partners were given a false explanation for the re-reviews. The stealth re-review program allowed KPMG to strengthen its work papers.
In January 2017, WADA, who had been passed over for promotion at the PCAOB, again stole valuable confidential PCAOB information, misappropriating a preliminary list of confidential 2017 inspection selections for KPMG audits and passing it on to Holder, referring to it in a voicemail as the “grocery list.” At the same time, WADA provided Holder with his resume and sought her assistance in helping him to acquire employment at KPMG. Sweet internally shared the preliminary inspection selections provided by WADA with Whittle, another co-conspirator, who in turn shared it with MIDDENDORF, who approved its use to improve the audits on the list.
In February 2017, WADA texted Holder saying, “I have the grocery list. . . . All the things you’ll need for the year.” WADA then spoke to Holder and provided her with the full confidential 2017 final inspection selections. Holder again shared the stolen information with Sweet, who shared it with MIDDENDORF, Whittle, and others, so that it could be acted upon to improve the audits on the list.
In 2017, a KPMG partner learned from Sweet that one of her audits was on the PCAOB inspection list, and she reported the matter to her supervisor. The matter was then ultimately reported to KPMG’s Office of General Counsel.
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MIDDENDORF, 54, was convicted of one count of conspiracy to commit wire fraud (Count Two) and three counts of wire fraud (Counts Three, Four, and Five). WADA, 43, was convicted of one count of conspiracy to commit wire fraud (Count Two) and two counts of wire fraud (Counts Four and Five). The conspiracy to commit wire fraud and wire fraud charges each carry a maximum prison term of 20 years. MIDDENDORF and WADA were each acquitted of one count of conspiracy to defraud the United States (Count One).
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 a judge.
Mr. Berman praised the outstanding investigative work of the United States Postal Inspection Service and also thanked the Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein, Amanda Kramer, and Jordan Estes are in charge of the prosecution.
Former Fifth Circuit Director of Communications Sentenced in Federal Court for FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Nicole Halliett Holland, age 50, former Director of Communications for the Fifth Circuit Solicitor’s Office and a resident of Columbia, South Carolina, was sentenced to three years probation after pleading guilty to committing Wire Fraud and Mail Fraud. Senior United States District Court Judge Cameron McGowan Currie presided. Holland also was ordered to pay $11,164.60 in restitution to the Solicitor’s Office.
Facts presented in court established that from 2011 to March 2018, Holland was employed by Daniel Edward Johnson at the Fifth Circuit Solicitor’s Office. During her time of employment, Nicole Holland used Solicitor’s Office funds to pay for personal expenses.
Using a Solicitor’s Office credit card issued to her for office-related expenses, she made the following unauthorized purchases, among others:
• In May 2017, various hotel stays at the Hampton Inn and Suites in Hopkinsville, Kentucky, totaling over $2,700. These charges correlate to Count 11 of the Indictment, which is the wire fraud for the August 7, 2017, payment covering these personal expenses.
• In March 2017, a $1,020 expense for a family member’s orthodontics treatment that Holland labelled as “tournament sponsorship.” This charge correlates to Count 19, the mailing of the Bank of America statement ending on March 8, 2017, which contained this expense.
The Federal Bureau of Investigation (FBI) and South Carolina Law Enforcement Division (SLED) investigated the case. Assistant United States Attorneys Winston D. Holliday, Jr., Alyssa L. Richardson, and William C. Lewis of the Columbia office prosecuted the case.
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Former Credit Union Lending Director Charged with Bank Fraud, Aggravated Identity Theft, and Filing False Tax ReturnsRead the Press Release
TALLAHASSEE, FLORIDA – Kevin Robert Lee, 35, of Tallahassee, Florida, was arraigned on Friday in the U.S. District Court in Tallahassee after a federal grand jury returned an indictment charging him with twenty counts of bank fraud, aggravated identity theft, theft from a lending institution, and three counts of filing a false tax return. The indictment was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
The indictment alleges that Lee was the lending director of FSU Credit Union (FSUCU), a Tallahassee-based credit union, a position that allowed him to open new customer accounts and approve lines of credit. The indictment also alleges that Lee served as treasurer of the Tallahassee Chapter of Credit Unions (TCCU), a non-profit organization that advocates pro-credit union legislation.
The indictment further alleges that, between June 2014 and November 2017, Lee fraudulently opened customer accounts at FSUCU using the names, dates of birth, and social security numbers of three individuals without their consent or knowledge, and in doing so, that Lee forged their signatures and fraudulently opened lines of credit for those accounts. Further, Lee is alleged to have made unauthorized withdrawals and transfers of funds from the accounts of approximately 20 FSUCU customers, which were deposited into the three fraudulently opened accounts. The indictment also alleges that Lee used the embezzled funds and fraudulently obtained loan proceeds to pay his personal creditors (such as for his home mortgage and credit cards) and to conceal his embezzlement. In total, Lee allegedly obtained or attempted to obtain more than $800,000. Lee also allegedly submitted false tax returns for the 2015-2017 calendar years.
The maximum penalty for bank fraud is 30 years in prison. Lee faces a 2-year mandatory minimum prison sentence for aggravated identity theft. The trial is scheduled for April 15, 2019, at 8:15 a.m. at the United States Courthouse in Tallahassee.
This case resulted from an investigation by the Florida Department of Law Enforcement and the Internal Revenue Service – Criminal Investigation, after being alerted by FSU Credit Union. Assistant United States Attorney Justin M. Keen is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Father and Son Convicted of Multimillion-Dollar Investment Fraud SchemeRead the Press Release
A federal jury in Birmingham, Alabama found a father and son guilty Friday of multiple charges for their roles in investment fraud and bank fraud schemes in which they stole over $10 million from individual investors—including multiple former professional athletes—and Alamerica Bank of Birmingham, Alabama.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jay E. Town of the Northern District of Alabama and Special Agent in Charge Johnnie Sharp Jr. of the FBI Birmingham Field Office made the announcement.
Donald Watkins Sr., 70, of Atlanta, Georgia, was convicted on seven counts of wire fraud, two counts of bank fraud and one count of conspiracy. Donald Watkins Jr., 46, of Birmingham was convicted on one count of wire fraud and one count of conspiracy. Sentencing is set for July 16 before U.S. District Court Judge Karon O. Bowdre of the Northern District of Alabama, who presided over the trial.
“The jury’s verdict today sends a clear message: Donald Watkins Sr. and Donald Watkins Jr. are frauds, plain and simple,” said Assistant Attorney General Benczkowski. “They induced their victims to part with more than $10 million of supposed ‘investment capital’ and used it to support their lavish lifestyle. I want to thank the prosecutors and law enforcement agents for their hard work investigating and prosecuting this case.”
“This was a case about deception and greed at the expense of too many,” said U.S. Attorney Town. “The findings of guilt for these two individuals should forewarn anyone who would seek to defraud investors so brazenly. We appreciate the labor of the jurors whose role as citizens in this process is so critical to our system of justice. We are also grateful to the Alabama Securities Commission and the Department of Justice’s Fraud Section for allowing their personnel to engage in this prosecution.”
“Both of the men found guilty today are financial predators who truly represent pure greed,” said FBI Special Agent in Charge Sharp. “We are pleased that the defendants in this case are being held accountable for their crimes and we will continue to work with our law enforcement partners to investigate and prosecute those who commit these types of financial crimes.”
According to evidence presented at trial, between approximately 2007 and 2013, Donald Watkins Sr. sold “economic participations” and promissory notes connected with Masada Resource Group, a company that he ran as manager and CEO. Investors paid millions of dollars after Donald Watkins Sr. and Donald Watkins Jr. falsely represented that the money would be used to grow Masada, which Donald Watkins Sr. described as a “pre-revenue” company that supposedly had technology that could convert garbage into ethanol. Instead of investing the money into Masada, however, Donald Watkins Sr. and Donald Watkins Jr. diverted funds to pay personal bills and the debts of their other business ventures. The evidence showed that victim money was used to pay for Donald Watkins Sr.’s alimony, hundreds of thousands of dollars in back taxes, personal loan payments, a private jet and clothing purchased by Donald Watkins Jr. and his wife. Emails introduced at trial also showed that Donald Watkins Jr. and Donald Watkins Sr. planned to obtain millions of dollars for these purposes from one victim on multiple occasions, when they knew that their victims trusted them to put their money to use in growing Masada. The defendants’ scheme eventually grew to include another business venture, Nabirm Global, a company that Donald Watkins Sr. claimed held mineral rights in Namibia.
Donald Watkins Sr. also defrauded Alamerica Bank, an entity in which Donald Watkins Sr. was the largest shareholder, the evidence showed. In order to pay hundreds of thousands in litigation expenses associated with another one of Donald Watkins Sr.’s business ventures, the defendants, Donald Watkins Sr. executed a plan to use a straw borrower to take out money from Alamerica Bank and give it to them. This straw borrower—Donald Watkins Sr.’s long-time mentor and a prominent figure in the Birmingham community—took over $900,000 in loans from Alamerica Bank and then immediately permitted Donald Watkins Sr. and Donald Watkins Jr. to use those funds for their personal benefit.
The investigation was conducted by the FBI’s Birmingham Field Office. Trial Attorney Kyle C. Hankey of the Criminal Division’s Fraud Section and First Assistant U.S. Attorney Lloyd C. Peeples III, Special Assistant U.S. Attorney Beau Brown (on detail from the Alabama Securities Commission) and Special Assistant U.S. Attorney Xavier O. Carter Sr. of the Northern District of Alabama prosecuted the case.
Fall River Man Sentenced for Tiverton Bank RobberyRead the Press Release
ROVIDENCE - A Fall River, Mass., man who admitted to robbing a Tiverton, R.I., bank in October 2017 was sentenced today in U.S. District Court in Providence to 48 months in federal prison.
Justin M. Davis, 36, previously admitted to the Court that on October 11, 2017, he passed a note to a teller at a branch office of Bank Newport which read “All $100 50, Empty Draw, No Dye packs, No Alarms.”
After the teller handed Davis $4,920 in cash, he ran from the bank toward a nearby cemetery and was seen on surveillance video leaving the area in a vehicle. A short time later, Tiverton police recovered a piece of clothing from the cemetery Davis wore during the robbery. Shortly thereafter, Fall River Police stopped the vehicle Davis was operating. From inside the vehicle police recovered other items of clothing Davis wore during the bank robbery and $3,470 in cash in the same denominations as those stolen during the robbery.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Davis to serve 3 years supervised release upon completion of his term of incarceration. He pled guilty on September 21, 2018, to a charge of bank robbery.
Davis’ sentence is announced by United States Attorney Aaron L. Weisman, Tiverton Police Chief Patrick Jones, and Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The matter was investigated by the Tiverton Police Department and the FBI.
Fair Oaks Man Sentenced to 4 years in Prison for Conspiring to Sell Stolen Credit Card Information and Identity TheftRead the Press Release
SACRAMENTO, Calif. — Mkrtych “Mike” Sargsyan, 55, of Fair Oaks, was sentenced today by Senior U.S. District Judge William B. Shubb to four years in prison for conspiring to sell stolen credit card information and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, between September 2015 and April 2016, Sargsyan and others agreed to obtain and sell stolen credit card information. On three occasions, Sargsyan traveled to Southern California to obtain electronic storage devices containing stolen credit card numbers and corresponding account holder information. Sargsyan then delivered that information to a buyer in Southern California and Rancho Cordova. During the course of the conspiracy, Sargsyan and his co-conspirators obtained information related to 587 credit card accounts.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.
Driver of Ridesharing Service Pleads Guilty in White Plains Federal Court to Kidnapping A RiderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that HARBIR PARMAR pled guilty in White Plains federal court to kidnapping and wire fraud. PARMAR was arrested on October 16, 2018, and pled guilty today before U.S. District Judge Vincent L. Briccetti.
U.S. Attorney Geoffrey S. Berman said: “Last year, Harbir Parmar took advantage of a vulnerable woman who utilized a ridesharing service by kidnapping and terrorizing her. In addition, he charged many of his ridesharing customers with fraudulent fees. Today, he admitted his guilt in open court, and will now be held accountable for his brazen crimes.”
According to the Indictment and statements made during today’s plea proceedings:
On February 21, 2018, PARMAR, who worked as a driver for a ridesharing company (“Company-1”), picked up an individual (“Victim-1”) in Manhattan, New York, who sought to be driven to White Plains, New York. After Victim-1 fell asleep in the backseat of the vehicle, PARMAR changed Victim-1’s destination in Company-1’s mobile application to an address in Boston, Massachusetts, and proceeded to drive toward that location. When Victim-1 awoke, the vehicle was in Connecticut. Victim-1 requested that she be taken to White Plains or to the police station, but PARMAR refused. PARMAR instead dropped Victim-1 off on the side of I-95 in Branford, Connecticut. Victim-1 went to a nearby convenience store where she sought assistance.
In addition, from December 2016 through February 2018, PARMAR sent false information about the destinations of Company-1’s customers through Company-1’s mobile application on several occasions. At times, he also sent false information about the application of a cleaning fee to be applied to the accounts of Company-1’s customers. In these instances, customers of Company-1 filed complaints with Company-1 about being overcharged for their rides. These instances have resulted in thousands of dollars in improper charges to the accounts of Company-1’s customers.
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PARMAR, 25, of Howard Beach, New York, pled guilty to one count of kidnapping, which carries a maximum sentence of life in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
PARMAR is scheduled to be sentenced by United States District Judge Vincent L. Briccetti Honorable Vincent L. Briccetti on June 24, 2019.
Mr. Berman praised the outstanding investigative work of FBI’s Westchester County Safe Streets Task Force, which comprises investigators from the FBI, U.S. Probation Office, New York State police, Westchester County Department of Public Safety, Westchester County District Attorney’s Office, the New York City Police Department, Yonkers Police Department, Greenburgh Police Department, Mount Vernon Police Department, and the Peekskill Police Department.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorney Jamie Bagliebter is in charge of the prosecution.
District of South Carolina Takes Part in Largest-Ever Nationwide Elder Fraud SweepRead the Press Release
Columbia, South Carolina – Attorney General William P. Barr and United States Attorney Sherri A. Lydon today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.
“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”
United States Attorney Lydon stated, “Our office is fully committed to the protection of the elderly as a part of the national Elder Fraud Initiative (EFI). Our prosecutors work day in and day out with law enforcement partners to protect the most vulnerable members of our society from harm. I thank Attorney General Barr and the Department of Justice for their leadership in putting a stop to elder fraud schemes.”
United States Attorney Lydon has appointed an Assistant United States Attorney (AUSA) as her statewide EFI coordinator and has designated an AUSA in each of the Columbia, Charleston, Florence, and Greenville Offices to lead the EFI efforts in their regions. Two cases prosecuted by the U.S. Attorney’s Office for the District of South Carolina in the last year demonstrate that the EFI effort goes after anyone who seeks to harm the elderly financially, no matter how small or large the loss.
Lashonda Ravenell, age 29, of Charleston, South Carolina, pleaded guilty to a fraud charge in federal court after obtaining credit card information from a resident at the care facility where she worked and stealing $30,786.62 from him.
Melvin Wimmer, Jr., age 53, of Greenwood, South Carolina, is serving 75 months in federal prison after pleading guilty to a securities fraud scheme that targeted numerous elderly people. Mr. Wimmer, an “investment advisor,” talked his victims into investing their retirement savings with him. After obtaining approximately $3.6 million from them, he managed to lose $3 million of it through high-risk trading. At no time did he ever advise his clients of the risk to their money, and after losing the money he kept the venture going by providing his investors with bogus earnings statements to keep them in the game, to use a conman’s phrase. Wimmer will be under court-ordered supervision for five years when he is released from prison.
The U.S. Attorney’s Office’s EFI team has reached out to and is coordinating with numerous federal, state, and local groups that are committed to protecting the elderly from all types of abuse. Additionally, members of the EFI team are available to make educational presentations to any group throughout the State.
United States Attorney Lydon would invite the public to visit her office’s EFI website at https://www.justice.gov/usao-sc/elder-justice-initiative. Additionally, reports of elder fraud may be made by calling any of the U.S. Attorney’s Offices in South Carolina and asking to speak to an elder fraud attorney.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
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Department of Justice FY 2020 Budget RequestRead the Press Release
President Trump’s FY 2020 Budget proposal totals $29 billion for the Department of Justice to support federal law enforcement and criminal justice priorities of our state, local, and tribal law enforcement partners. The request represents a comprehensive investment in the Justice mission and includes increases in funding for strengthening security efforts to reduce violent crime, enforce the nation’s immigration laws, combat the opioid epidemic, and continues its commitment to National Security.
“The men and women of the Department of Justice perform critical duties every day that keep the American people safe, protect civil rights, and uphold the rule of law,” said Attorney General William P. Barr. “Over the past year, federal prosecutions of violent offenses, drug offenses, firearm offenses, immigration violations, and white collar crimes have all gone up while violent crime nationally has gone down. The President’s budget request increases our resources for fighting the opioid epidemic, transnational organized crime, violent crime, illegal immigration, and cybersecurity threats, and I urge our representatives in Congress to pass it into law.”
The Department of Justice’s areas of investment include:
- +$290.5 million in program enhancements and transfers to fight the opioid crisis and support law enforcement safety. Additional resources will be devoted to combatting transnational criminal organizations, known for supplying illicit substances to the United States.
- +$137.9 million to strengthen federal law enforcement’s ability to reduce violent crime.
- +$72.1 million in immigration related program enhancements to enhance border security and immigration enforcement. These investments will also improve our ability to conduct immigration hearings to help combat illegal immigration.
- +$132.0 million in program enhancements to address critical national security and cyber threats.
- $4.3 billion in discretionary and mandatory funding for federal grants to state, local, and tribal law enforcement and victims of crime, to ensure greater safety for law enforcement personnel and the people they serve. Critical programs aimed at protecting the life and safety of state and local law enforcement personnel, including the Public Safety Partnership Program and the Project Safe Neighborhood Program, demonstrate our continuing commitment to supporting state, local, and tribal law enforcement.
For more information, view the FY 2020 Budget and Performance Summary at https://www.justice.gov/doj/fy-2020-budget-and-performance-summary.
Drug Enforcement and the Opioid Crisis
The United States is in the midst of the deadliest drug epidemic in American history. According to the Centers for Disease Control and Prevention (CDC), more than 70,200 Americans died from drug overdoses in 2017, a 10 percent increase from the previous year.[1] Over 47,600, or over two-thirds, of these overdose deaths were caused by heroin, fentanyl, and prescription opioids. The President declared a National Public Health Emergency in October 2017, and the Department remains committed to doing its part to protect the American people from the impact of drugs and drug-related crime nationwide.
The FY 2020 budget requests $291 million in program enhancements and transfers to combat the opioid crisis and bolster drug enforcement efforts. These resources enable the Department to target the drug trafficking organizations responsible for opioid abuse and drug-related violence in our communities. It also bolsters the capacity of Department agents to deny revenues to drug traffickers using the best cyber capabilities and technologies, enabling the Department to keep pace with these nefarious actors.
For more information, view the Drug Enforcement and the Opioid Crisis Fact Sheet at https://www.justice.gov/doj/fy-2020-budget-fact-sheets.
Combating Violent Crime
Protecting the American people from violent crime is a top priority for the Department of Justice. Unfortunately, in recent years, crime has been on the rise throughout the country. FBI statistics show that, in 2015 and 2016, the United States experienced the largest increases in violent crime in a quarter-century.[2] Over those two years, violent crime increased by nearly 7 percent. Robberies, assaults, and rapes all increased, and murder increased by a shocking 20 percent.
In 2017 and 2018, the Department revitalized Federal efforts to fight violent crime, including the launch of the enhanced Project Safe Neighborhoods initiative, which brings together all levels of law enforcement and the communities they serve to develop effective, locally-based strategies to reduce violent crime. In FY 2018, the Department prosecuted the greatest number of violent criminals in at least 25 years—since the Department began tracking “violent crime” as a category.
The FY 2020 budget requests $137.9 million in program enhancements to reduce violent crime and combat transnational criminal organizations. The Department of Justice is committed to restoring law and order by providing Federal resources where they are most needed and most effective. These resources will enable the Department to dismantle the worst criminal organizations, target the most violent offenders, and protect the public.
For more information, view the Combating Violent Crime Fact Sheet at https://www.justice.gov/doj/fy-2020-budget-fact-sheets.
Enforce Immigration Laws
The FY 2020 budget strengthens the Nation’s security through stronger enforcement of the Nation’s immigration laws. The Department is requesting $72.1 million in immigration related program enhancements for FY 2020, which will enhance border security and immigration enforcement. These investments will also improve our ability to conduct immigration hearings to help combat illegal immigration to the United States by expanding capacity, improving efficiency, and removing impediments to the timely administration of justice. This budget supports the Department’s efforts, along with our partners at the Department of Homeland Security, to fix our immigration system.
For more information, view the Enforce Immigration Laws Fact Sheet at https://www.justice.gov/doj/fy-2020-budget-fact-sheets.
National Security and Cyber
National security remains the Department’s highest priority. Threats are constantly evolving, requiring additional investments to mitigate those threats in innovative ways. Terrorists seek to sabotage critical infrastructure; organized crime syndicates seek to defraud banks and corporations; and spies seek to steal defense and intelligence secrets and intellectual property. Each threatens our nation’s economy and security.
The FY 2020 budget supports the Department in responding to those evolving threats by dedicating $132 million to provide program enhancements for areas of 1) Cyber, 2) Counterterrorism, 3) Counterintelligence, and 4) Dignitary Protection.
State, Local, and Tribal Assistance
The Justice Department is solidly committed to the President’s initiatives to reduce violent crime and address the opioid epidemic. Federal law enforcement officers constitute only 15 percent of the total number of law enforcement officers nationwide; therefore, 85 percent of the officer support relies upon strong partnership with state and local law enforcement. The Department supports its partners in state and local law enforcement, who have critical intelligence about violent crime in their communities, and whose actions are crucial in the fight against violent crime and the opioid epidemic.
The FY 2020 budget continues its commitment to state, local and tribal law enforcement by investing approximately $4.3 billion in discretionary and mandatory funding in programs to assist them. Funding has been prioritized to meet the most pressing law enforcement concerns – violent crime and opioid abuse – and to help the victims of crime.
For more information, view the State, Local and Tribal Assistance Fact Sheet at https://www.justice.gov/doj/fy-2020-budget-fact-sheets
[1] Hedegaard H. Drug Overdose Deaths in the United States, 1999-2017. NCHS Data Brief, no 329. Hyattsville, MD: National Center for Health Statistics. 2019. Available from: https://www.cdc.gov/nchs/data/databriefs/db329_tables-508.pdf
[2] U.S. Dep’t of Justice, Fed. Bureau of Investigation, Crime in the United States, 2016: Table 1 & n.6, https://ucr.fbi.gov/crime-in-the-u.s/2016/crime-in-the-u.s.-2016/tables/table-1; for data years prior to 1995, see U.S. Dep’t of Justice, Fed. Bureau of Investigation, UCR Data Tool, https://www.ucrdatatool.gov/index.cfm.
Covidien to Pay over $17 Million to the United States for Allegedly Providing Illegal Remuneration in the Form of Practice and Market Development Support to PhysiciansRead the Press Release
Covidien LP has agreed to pay $17,477,947 to resolve allegations that it violated the False Claims Act by providing free or discounted practice development and market development support to physicians located in California and Florida to induce purchases of Covidien’s vein ablation products, the Department of Justice announced today.
“Today’s settlement serves as an important reminder to those in the health care community that unlawful kickbacks come in many forms and are not limited to monetary payments to providers,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Providing free or discounted services to health care providers to induce the use of certain items or services can lead to excessive and unnecessary treatments, and drive up health care costs for everyone.”
“Patients in federal health care programs deserve medical care that is free from improper financial incentives,” said U.S. Attorney David L. Anderson for the Northern District of California. “As this case makes clear, companies must steer clear of violating the Anti-Kickback Statute or risk being pursued.”
The United States alleged that Covidien violated the Anti-Kickback Statute and, correspondingly, the False Claims Act by providing practice development and market development support to health care providers located in California and Florida from Jan. 1, 2011, through Sept. 30, 2014, to induce those providers to purchase ClosureFASTTM radiofrequency ablation catheters that were billed to Medicare and to the California and Florida Medicaid programs. ClosureFastTMcatheters are used in procedures that treat venous reflux disease, a disease often marked by the presence of varicose veins. The practice and market development support Covidien provided included customized marketing plans for specific vein practices; scheduling and conducting “lunch and learn” meetings and dinners with other physicians to drive referrals to specific vein practices; and providing substantial assistance to specific vein practices in connection with planning, promoting, and conducting vein screening events to cultivate new patients for those practices.
The Anti-Kickback Act prohibits the payment of remuneration to induce the referral or use of items or services paid for by federal health care programs. Remuneration includes not only cash payments but also offers or payments made “in kind.”
“The government contended that Covidien provided discounted or free services to health providers – and so hoped to evade kickback charges,” said Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Companies seeking to buy clients through such arrangements can expect to pay a steep price.”
“Kickback schemes don’t just victimize those directly involved, they undermine the public’s trust in our healthcare system and drive up costs for everyone,” said FBI San Francisco Special Agent in Charge John F. Bennett, “This significant settlement sends a clear message: healthcare providers who engage in this kind of activity and put their own greed before the needs of their patients will be aggressively pursued by the FBI and our federal partners.”
Under the settlement agreement, Covidien will pay an additional $1,474,892 to California and $1,047,160 to Florida for claims settled by these state Medicaid programs. The Medicaid program is a jointly funded federal and state program.
The settlement resolves allegations contained in lawsuits filed by Erin Hayes and Richard Ponder (former sales managers for Covidien) and Shawnea Howerton (a former employee of one of Covidien’s customers), which are pending in federal court in San Francisco, California. The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the United States for false claims and to share in any recovery. Mr. Hayes and Mr. Ponder will receive $3,146,030 as their share of the federal recovery.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Northern District of California, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation, as well as the California Attorney General’s Office and the Florida Attorney General’s Office. Covidien cooperated in the government’s investigation, including by sharing the results of its extensive internal investigation and by assisting in the development of a sophisticated damages model, and received credit for its cooperation.
The cases are captioned United States ex rel. Hayes, et al. v. Covidien, Inc., et al., Case No. C 14-1511-EDL (N.D. Cal.), and United States, et al. ex rel. Howerton v. Covidien, et al., Case No. C 15-0559-EDL (N.D. Cal.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Covidien to Pay over $17 Million to the United States for Allegedly Providing Illegal Remuneration in the Form of Practice and Market Development Support to PhysiciansRead the Press Release
SAN FRANCISCO – Covidien LP has agreed to pay $17,477,947 to resolve allegations that it violated the False Claims Act by providing free or discounted practice development and market development support to physicians located in California and Florida to induce purchases of Covidien’s vein ablation products, the Department of Justice announced today.
“Patients in federal health care programs deserve medical care that is free from improper financial incentives,” said U.S. Attorney David L. Anderson for the Northern District of California. “As this case makes clear, companies must steer clear of violating the Anti-Kickback Statute or risk being pursued.”
“Today’s settlement serves as an important reminder to those in the health care community that unlawful kickbacks come in many forms and are not limited to monetary payments to providers,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Providing free or discounted services to health care providers to induce the use of certain items or services can lead to excessive and unnecessary treatments, and drive up health care costs for everyone.”
The United States alleged that Covidien violated the Anti-Kickback Statute and, correspondingly, the False Claims Act by providing practice development and market development support to health care providers located in California and Florida from Jan. 1, 2011, through Sept. 30, 2014, to induce those providers to purchase ClosureFASTTM radiofrequency ablation catheters that were billed to Medicare and to the California and Florida Medicaid programs. ClosureFastTM catheters are used in procedures that treat venous reflux disease, a disease often marked by the presence of varicose veins. The practice and market development support Covidien provided included customized marketing plans for specific vein practices; scheduling and conducting “lunch and learn” meetings and dinners with other physicians to drive referrals to specific vein practices; and providing substantial assistance to specific vein practices in connection with planning, promoting, and conducting vein screening events to cultivate new patients for those practices.
The Anti-Kickback Act prohibits the payment of remuneration to induce the referral or use of items or services paid for by federal health care programs. Remuneration includes not only cash payments but also offers or payments made “in kind.”
“The government contended that Covidien provided discounted or free services to health providers — and so hoped to evade kickback charges,” said Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Companies seeking to buy clients through such arrangements can expect to pay a steep price.”
“Kickback schemes don’t just victimize those directly involved, they undermine the public’s trust in our healthcare system and drive up costs for everyone,” said FBI San Francisco Special Agent in Charge John F. Bennett, “This significant settlement sends a clear message: healthcare providers who engage in this kind of activity and put their own greed before the needs of their patients will be aggressively pursued by the FBI and our federal partners.”
Under the settlement agreement, Covidien will pay an additional $1,474,892 to California and $1,047,160 to Florida for claims settled by these state Medicaid programs. The Medicaid program is a jointly funded federal and state program.
The settlement resolves allegations contained in lawsuits filed by Erin Hayes and Richard Ponder (former sales managers for Covidien) and Shawnea Howerton (a former employee of one of Covidien’s customers), which are pending in federal court in San Francisco, California. The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the United States for false claims and to share in any recovery. Mr. Hayes and Mr. Ponder will receive $3,146,030 as their share of the federal recovery.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Northern District of California, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation, as well as the California Attorney General’s Office and the Florida Attorney General’s Office. Covidien cooperated in the government’s investigation, including by sharing the results of its extensive internal investigation and by assisting in the development of a sophisticated damages model, and received credit for its cooperation.
The claims resolved by the settlement are allegations only, and there has been no determination of liability. This case is being handled by Assistant United States Attorney Kimberly Friday and U.S. Department of Justice Trial Attorney Amy Kossak with assistance from Garland He, Jonathan Birch, and Tina Louie.
Clarksville Man Sentenced to 20 Years in Federal Prison for Firing Weapon at Police OfficersRead the Press Release
NASHVILLE, Tenn. – March 11, 2019 – Levi West, 35, of Palmyra, Tennessee, was sentenced Friday to 20 years in federal prison, as the result of an incident in February 2018, during which he fired a handgun at Clarksville police officers, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
West was indicted by a federal grand jury in April 2018 on charges of being a convicted felon in possession of a firearm and being a violent felon in possession of body armor. He pleaded guilty to the charges on December 3, 2018.
“Assaults against our law enforcement officers will be reviewed by the U.S. Attorney’s Office and when appropriate, as in this case, we will bring federal charges and vigorously pursue lengthy prison sentences as we have here,” said U.S. Attorney Don Cochran.
According to court documents, on February 3, 2018, West was involved in a high-speed pursuit in Clarksville while attempting to elude police officers. Officers later located West’s vehicle parked in a residential area and saw West standing outside the car. West refused the officer’s directives to comply with arrest commands and fired three shots at them, before fleeing into a nearby wooded area. West was apprehended by a police K-9 a short time later.
In addition to past convictions for robbery, aggravated assault and aggravated burglary, West also has a history of violent interactions with law enforcement dating back to 2001, when at age 17, he assaulted and threatened to kill arresting officers; in 2005 West assaulted a Virginia State Trooper; in 2006 West assaulted another Virginia police officer; at age 25, after violating a protective order, West assaulted a sheriff’s deputy and threatened to kill his family and dog; at age 33, while a member of the Outlaws Gang, West and two others beat an inmate to death; at age 34, West assaulted a probation officer; and while incarcerated awaiting trial in this case, he struck two sheriff’s deputies in the face multiple times. For these and other convictions, West received mostly probationary sentences in the state system, with relatively short sentences over the past decade.
Although West was facing 10 years in prison, in sentencing him, U.S. District Court Judge William L. Campbell, Jr., found that West qualified as an Armed Career Criminal and was subject to enhanced punishment and sentenced him to 20 years in prison.
This case was investigated by the Clarksville, Tennessee Police Department and the Bureau of Alcohol, Tobacco, Firearms & explosives. The case was prosecuted by Assistant U.S. Attorney Thomas Jaworski.
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Child Pornography Leads to 10 Year Sentence for Centralia ManRead the Press Release
William P. Keller, 42, of Centralia, Illinois, has been sentenced to 10 years in federal prison for distributing and receiving child pornography over the internet. Chief United States District Judge Michael J. Reagan handed down the sentence, which includes five years of supervised release and a $15,000 restitution award to the victims.
The case against Keller began in October 2017, when an online investigation discovered an IP address associated with Keller sharing child pornography over peer-to-peer software. During the execution of a search warrant at Keller’s home, federal agents seized a computer, a cell phone, and multiple external hard drives. An FBI forensic analysis of those devices uncovered over 1,400 images and 26 videos of child pornography. Some of the illicit files depicted the sexual abuse of children as young as toddlers.
On July 31, 2018, Keller pleaded guilty to a two-count felony information charging him with distributing and receiving identified child pornography files. He also agreed to forfeit his computer and an external hard drive that had been used in the commission of the crimes. At sentencing, Keller admitted his criminal conduct but maintained that he had collected the child pornography in a ham-fisted attempt to frame a relative he believed had molested his sister when they were children.
This case was investigated by the FBI and prosecuted by Assistant United States Attorney Christopher Hoell. It 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."
California Woman Sentenced for Shipping Methamphetamine to Red Cliff ReservationRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western Disttrict of Wisconsin, announced that Rita Witter, 69, Fremont, California, pleaded guilty and was sentenced last week by U.S. District Judge William M. Conley to three years in prison for conspiring to distribute methamphetamine. Witter appeared in federal court in Madison on March 7.
Witter conspired with others, including her son, to traffic methamphetamine to the Red Cliff Reservation in Bayfield, Wisconsin. While the conspiracy was ongoing for approximately one year, Witter did not join until the final six months. During that time, she shipped four or five packages containing substantial amounts of methamphetamine to the Red Cliff Reservation. Judge Conley described Witter as knowingly fueling the addiction of untold others in the small Red Cliff community.
Rita Witter and three other individuals were charged for their roles in this methamphetamine distribution conspiracy. All have pleaded guilty and Witter is the second to be sentenced. Simon Sayers was sentenced to 7.5 years in prison for his role in the conspiracy. Ryan Witter, Rita Witter’s son, is scheduled to be sentenced March 20, and Tyrone Butterfield’s sentencing is scheduled for April 3.
The charge against Witter was the result of an investigation conducted by the Red Cliff Police Department; Wisconsin Department of Justice Division of Criminal Investigation; U.S. Postal Inspection Service; Drug Enforcement Administration in Wisconsin and California; Bayfield County Sheriff’s Office; Ashland Police Department; and the Fremont (Calif.) Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Diane Schlipper.
Branchland Woman Pleads Guilty to Federal Fentanyl ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Branchland woman caught delivering fentanyl to another individual last year in Huntington pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Rebecca S. Bryant, 41, entered a guilty plea to conspiracy to distribute fentanyl in federal court in Huntington. Stuart commended the investigative efforts of the Huntington Police Department.
“Over 100 grams of fentanyl,” said United States Attorney Mike Stuart, “could have wiped out the entire population of Huntington. Everyone. Nada. Game over. We owe law enforcement a huge debt of gratitude for intercepting this deadly drug before it hit the streets. As part of Operation Synthetic Opioid Surge (S.O.S.), we are continuing to prosecute each and every fentanyl dealer to the maximum extent of the law.”
On May 23, 2018, officers with the Huntington Police Department observed Bryant meet with another individual in her vehicle in the parking lot of the Little Caesar’s restaurant located at 100 7th Avenue in Huntington. After meeting with the individual, Bryant left the lot and officers conducted a traffic stop of Bryant’s vehicle. Bryant admitted that she had provided a package containing drugs to the individual. The other individual was also stopped and officers seized a package containing in excess of 100 grams of fentanyl. Bryant admitted that she received the fentanyl earlier the prior week and that, on May 23, she was directed to deliver it at the Little Ceasar’s.
Bryant faces up to 20 years in federal prison when she is sentenced on June 17, 2019.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
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Boston Man Arrested for Sexual Exploitation of ChildrenRead the Press Release
BOSTON – A Boston man was arrested today and charged in federal court in Boston for surreptitiously filming boys in the restrooms at Boston Latin School (BLS).
Eric Tran Thai, 36, was charged with five counts of sexual exploitation of children. He will appear in federal court in Boston at 3:30 p.m. today.
According to court documents, on Feb. 6 and Feb. 27, 2018, two separate Boston College students reported to the police that they had been videotaped without their knowledge or consent while they were using the men’s restrooms on the Boston College campus. Following the Feb. 27, 2018, report, police located and spoke with Thai, who was then arrested on state charges in Middlesex County Superior Court.
It is alleged that while speaking with police, Thai admitted to “taking some pictures” of a man in the stall next to him without the man’s consent. He further admitted to engaging in such activity for about a year. Thai was placed under arrest on state charges and his bag was subsequently searched; in it, police found several covert camera devices, including faux smoke detectors, a water bottle containing a small cube recording device, and a pair of sunglasses outfitted with a built-in camera.
During a search of Thai’s home on March 1, 2018, law enforcement seized approximately 26 computer hard drives, 20 thumb drives, 27 covert and regular cameras, 14 computers, iPads, and cell phones, and multiple SD and Sim cards. During forensic analysis of the recovered items, investigators found several folders labeled: BU, MIT, Harvard, Northeastern, Bunker Hill, Boston Latin High School, and several different malls, airports, and foreign country locations. Given the amount of data seized by investigators, forensic analysis is ongoing.
It is alleged that the videos contained in folders labeled “Boston Latin High School” contained approximately 45 surreptitiously-recorded videos of male students in various states of dress using the urinals and stalls in a Boston Latin High School boys’ bathroom. The videos appear to have been created on approximately 10 separate dates between February and December 2017.
In general, the videos show Thai sitting in a bathroom stall at Boston Latin High School recording individuals in adjacent stalls or at the urinals through various secret recording methods. In some videos, Thai appears to hold a camera over the top of the partition between the bathroom stalls and videotaping from overhead. In other instances, he appears to hide a small camera inside of his backpack, place the backpack on the bathroom floor and videotape individuals in the adjacent bathroom stall from under the stall’s partition. While recording, it appears that Thai would simultaneously view what the camera was recording on a cellphone or a tablet device in his possession. Based on this evidence, Thai was charged with five counts of sexual exploitation of children in violation of federal law.
The defendant also allegedly surreptitiously video recorded individuals in numerous public restroom locations throughout greater Boston and elsewhere.
Members of the public who have questions, concerns, or information about this case should contact the U.S. Attorney’s Office at 617-748-3274.
Each charge of sexual exploitation of children provides for a mandatory minimum 15 years and up to 30 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Middlesex District Attorney Marian T. Ryan; Boston Police Commissioner William G. Gross; and Boston College Police Chief William B. Evans made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of his Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Battle Creek Woman Sentenced to 3 Years in Federal Prison for Filing False Tax ReturnsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that U.S. District Judge Janet Neff sentenced Tammy Sue Burdette, 52, of Battle Creek, to 36 months in prison and ordered her to pay $569,852 in restitution for filing false tax returns.
From 2009 through 2012, Burdette was employed as the office manager at VHC, PC and stole more than $3 million. Burdette wrote checks payable to herself from VHC’s bank account and spent the money gambling. Burdette failed to account for the money on her income tax returns.
"The defendant, Tammy Sue Burdette, stole more than $3 million and willfully failed to report that income to the Internal Revenue Service. Her conduct deprived the American taxpayer of $569,852 in tax revenue," stated IRS Criminal Investigation Special Agent in Charge Manny Muriel. "As we approach the April 15 tax deadline, the public can rest assured that the special agents of IRS Criminal Investigation will continue to protect the U.S. tax system, ensuring everyone accurately reports their income and pays their fair share of taxes."
The case was investigated by IRS Criminal Investigations. Assistant U.S. Attorney Clay Stiffler handled the prosecution.
Ball felon sentenced to nearly three years in prison for possessing revolverRead the Press Release
ALEXANDRIA, La. – Terrence Taylor, 38, of Ball, Louisiana, was sentenced last week to 34 months in prison by U.S. District Judge Dee D. Drell for possession of a firearm by a convicted felon, U.S. Attorney David C. Joseph announced. He was also sentenced Friday to three years of supervised release.
According to the guilty plea, when Alexandria police officers approached Taylor’s vehicle on August 12, 2017 at a local park, they noticed the handle of a firearm under the armrest of the driver’s seat, and later identified the firearm as a Smith & Wesson .357 Magnum revolver, which was loaded with six rounds. A warrant check revealed that Taylor had outstanding warrants for probation violations and he was arrested at the scene. Taylor is a felon who has previously been convicted of forcible rape, illegal use of a weapon and possession of a controlled dangerous substance. As a felon, he is prohibited under federal law from possessing a firearm and ammunition. He pleaded guilty on October 30, 2018.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The ATF and the Alexandria Police Department conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog prosecuted the case.
Alexandria felon sentenced to more than 4 years in prison for possessing pistolRead the Press Release
ALEXANDRIA, La. – Theodore Hines, 37, of Alexandria, was sentenced last week to 51 months in prison by U.S. District Judge Dee D. Drell for possession of a firearm by a felon, U.S. Attorney David C. Joseph announced. He was also sentenced Thursday to two years of supervised release and was ordered to pay a $5,000 fine.
According to the guilty plea, an Alexandria police officer observed Hines on June 26, 2018 remove a pistol from his pocket and throw it onto the ground. Hines told police officers he had the pistol to protect himself. After his arrest, police took possession of the loaded Kel-Tec .380-caliber pistol. Hines has multiple previous felonies related to drug trafficking. According to federal law, Hines is not allowed to possess a firearm or ammunition as a convicted felon. He pleaded guilty on December 11, 2018.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program 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.
The ATF and the Alexandria Police Department conducted the investigation. Assistant U.S. Attorney Cadesby B. Cooper prosecuted the case.
Alexandria felon sentenced to 18 months in prison for possessing pistolRead the Press Release
ALEXANDRIA, La. – Terrance Duane King, 30, of Alexandria, was sentenced last week to a year and six months in prison by U.S. District Judge Dee D. Drell for possession of a firearm by a convicted felon, U.S. Attorney David C. Joseph announced. King was also sentenced Friday to three years of supervised release.
According to the guilty plea, Alexandria police responded to drug related complaints on February 23, 2017 at an apartment complex on Sunset Drive. As the officers approached a group of men standing between apartment buildings, King fled the area, took a pistol from his waistband and tossed it to the ground. Officers arrested King and retrieved a firearm that was identified as a Springfield Armory, Model XD-40, .40-caliber pistol. King is a convicted felon who was convicted on drug-related charges in 2009, 2011 and 2016. Under federal law, as a convicted felon, he is prohibited from possessing a firearm and ammunition. King pleaded guilty November 19, 2018.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The ATF and the Alexandria Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford is prosecuting the case.
Saturday 9 March 2019
United States Attorney Mike Stuart Announces Commitment to Ending Elder AbuseRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced his commitment to ending elder abuse. Approximately one in ten Americans aged 60 and over have experienced some form of elder abuse in the last year. The abuse can be physical, psychological, or financial. Financial scams result in seniors losing billions each year.
With the signing of the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, President Trump and his administration placed a renewed focus on those who prey on the elderly.
“I will do everything within my power to protect West Virginia’s seniors and elderly. I have made it a priority to prosecute those who defraud them,” said United States Attorney Mike Stuart. “My office fully embraces Attorney General Barr’s and the Department of Justice’s Elder Justice Initiative. We will be working closely with our law enforcement partners to file both criminal and civil cases against fraudsters, lowlifes and scammers that target the elderly. This is a priority for which you will be reading headlines in the coming months. I will seek maximum sentences and penalties in every case of elder abuse.”
If you or someone you know is the victim of elder fraud/exploitation, we encourage you to reach out to the United States Attorney’s Office for the Southern District of West Virginia at 800-659-8726 (USAO). Assistant United States Attorney Rachel Kincaid is the Elder Justice Coordinator. And if you or someone you know is suffering from physical abuse, or is in immediate danger, please call 911 or contact your local law enforcement. Elder justice resources, training, and outreach materials can be found at the Department of Justice’s Elder Justice website, www.elderjustice.gov.
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Three Charged in Conspiracy to Distribute More Than 28 Gallons of Liquid MethamphetamineRead the Press Release
OKLAHOMA CITY – EDUARDO VILLA-ALVAREZ, 22, JOSE MANUEL SOTO-OCHOA, 22, and KRISTNADEVY MENDOZA-ZAMBRANO, 22, have been charged with conspiring to distribute 28 gallons of liquid methamphetamine and 55 pounds of crystal methamphetamine, announced Robert J. Troester of the U.S. Attorney’s Office.
According to a March 8, 2019, affidavit filed in federal court in support of a criminal complaint, law enforcement stopped a maroon Ford Escape with Oklahoma plates on March 7 south of Oklahoma City, between Purcell and Pauls Valley. The vehicle had been the subject of a judicially-approved tracking device and was traveling from the area of Mesquite, Texas. Defendant Mendoza-Zambrano is alleged to have been driving the vehicle. According to the complaint, a search yielded approximately 77 liters (20 gallons) of liquid methamphetamine.
That same day, agents and officers with the DEA’s North Texas High Intensity Drug Trafficking Area program ("HIDTA") executed a search warrant at a residence in south Oklahoma City. According to the complaint, Villa-Alvarez and Soto-Ochoa were the only occupants of the residence. Law enforcement is alleged to have observed Soto-Ochoa placing in the back of a black Ford Escape a box with baggies containing a white substance. They also are alleged to have observed Villa-Alvarez and Soto-Ochoa using a broom and dust pan to sweep up a white substance. According to the complaint, when investigators approached Villa-Alvarez, he attempted to flee and tossed a firearm near the back yard. Investigators seized from the residence and the vehicle more than 25 kilograms (approximately 55 pounds) of a white crystal substance that tested positive for methamphetamine and more than 30 liters (approximately eight gallons) of suspected liquid methamphetamine. The complaint states investigators believe Mendoza-Zambrano was working with Villa-Alvarez and Soto-Ochoa.
The complaint charges each defendant with conspiracy to possess with intent to distribute more than 500 grams of methamphetamine, as well as possession with intent to distribute more than 500 grams of methamphetamine. If convicted of either of these crimes, each defendant could be imprisoned for life and fined up to $10,000,000. A conviction on either count would also result in a mandatory minimum sentence of ten years in prison.
These charges are the result of an investigation by the Drug Enforcement Administration, including the North Texas HIDTA, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Oklahoma Highway Patrol, the El Reno Police Department, and the District 21 Drug Task Force. Assistant U.S. Attorney Matt Anderson is prosecuting the case.
The public is reminded that these charges are merely allegations and that each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for further information.
Omaha Man Sentenced to 204 Months for Distributing Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Gregory Bartunek, 65, was sentenced today in federal court in Omaha for distributing child pornography. A jury previously found Bartunek guilty of child pornography offenses. The Honorable Robert F. Rossiter, Jr. sentenced Bartunek to 204 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Bartunek will begin a 15-year term of supervised release and be required to register a as sex offender.
On March 26, 2016, a computer at Bartunek’s residence was observed using an online chat service to distribute images of prepubescent minors engaged in a sexual act. The same online chat service again observed a computer from his residence sending another image of child pornography on April 27, 2016.
On May 25, 2016, members of the FBI Cyber Crimes Task Force served a search warrant at Bartunek’s residence in South Omaha. In addition to seizing computers, agents observed four life-sized infant and toddler dolls. Two of the dolls had male genitalia appended. All were clothed in children’s underwear. More children’s underwear was recovered mixed with Bartunek’s underwear in his dresser.
Advanced forensics were used to recover the numerous videos and images that Bartunek, a computer specialist, had erased from his hard drives. Forensic artifacts recovered from the computer showed in excess of 40 titles indicative of or of known child pornography videos. Also recovered were images from the online chat service.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Cyber Crime Task Force (CCTF).
Friday 8 March 2019
Wichita Doctor Sentenced to Life for Diverting Rx Drugs to the StreetsRead the Press Release
WICHITA, KAN. - Wichita physician Steven R. Henson was sentenced today to life in federal prison for unlawfully distributing prescription drugs, U.S. Attorney Stephen McAllister said.
“I want this case to send a message to physicians and the health care community,” McAllister said. “Unlawfully distributing opioids and other controlled substances is a federal crime that could end a medical career and send an offender to prison.”
McAllister continued: “We are dealing with an epidemic. Nationwide, more than 70,000 Americans died in 2017 from drug overdoses. That is more than all the American casualties during the war in Vietnam.”
Henson, 57, operated the Kansas Men’s Clinic at 3636 N. Ridge Road in Wichita, stood trial in October and was convicted on the following counts:
- Conspiracy to distribute prescription drugs outside the course of medical practice (Counts 1 and 2).
- Unlawfully distributing oxycodone (Counts 3 through 14).
- Unlawfully distributing oxycodone, methadone and alprazolam (Count 16).
- Unlawfully distributing methadone and alprazolam, the use of which resulted in the death of a victim on July 24, 2015, identified in court records as N.M. (Count 17)
Presenting false patient records to investigators (Count 19). - Obstruction of justice (Count 20)
- Money laundering (Counts 26 through 31).
Evidence at trial showed Henson was giving dangerous, maximum strength opioid prescriptions to people who did not need them.
Henson was registered with the Drug Enforcement Administration to dispense prescription controlled substances. His registered addresses included the Wichita Men’s Clinic and a location at 1861 N. Rock Road, Suite 201.
During trial, prosecutors presented evidence that Henson:
- Wrote prescriptions without a medical need.
- Wrote prescriptions in return for cash.
- Post-dated prescriptions.
- Wrote prescriptions without a legitimate medical exam.
- Wrote prescriptions for people other than the ones who came to see him.
U.S. District Judge J. Thomas Marten wrote in an order denying the defendant’s motion for acquittal: “The defendant kept no medical records, performed no physical examinations or physical tests, gave massive amounts of opioids to patients with little demonstrated need, wrote unneeded, non-controlled prescriptions in order to defeat pharmacy limits on controlled substances, and knew that patients were traveling improbably long distances to receive opioids. There was ample evidence that Henson was prescribing opioid medications in amounts likely to lead to addiction, and in amounts so expensive that the patients would likely be forced by economic circumstances to support their addiction by selling some of the drugs to others.”
The judge criticized Henson for deliberately not confronting the fact his patients were addicts. He had a uniform, scripted colloquy with patients in which he asked them if they had pain, they said yes and then he gave them prescriptions. In that way, he avoided asking more questions or ordering more tests. Marten called it, “a pantomime of a genuine doctor-patient relationship (that) demonstrated a consistent policy of avoiding the truth.”
Evidence presented at trial showed Henson prescribed opioid medications in amounts likely to lead to addiction and ignored the risk that his patients would pay for their drugs by selling some of the drugs to other people.
McAllister said: “The prosecution of cases involving a health professional’s misuse of medical expertise and authority is extremely important to fight the opioid epidemic. The vast majority of health care providers are people of integrity who follow their oath to help others, abide by the law, and do all they can to protect patients from becoming addicted. The evidence showed that is not what Dr. Henson did in this case.”
“For any doctors, pharmacists or nurses who disregard their oath and distribute powerful drugs illegally to enrich themselves, the message today is that they will be prosecuted to the full extent allowed by federal law.”
McAllister comended the Drug Enforcement Administration’s Tactical Diversion Squad, the Newton Police Department, the Wichita Police Department, the Internal Revenue Service-Criminal Investigation Division investigated, the Johnson County Sheriff’s Office, Assistant U.S. Attorney Mona Furst and Assistant U.S. Attorney Kimberly Rodebaugh for their work on the case.
Westside Crips Gang Member Sentenced to 82 MonthsRead the Press Release
Assistant U.S. Attorneys Alessandra P. Serano (202) 252-5843 or Joseph Orabona (619) 546-7951
NEWS RELEASE SUMMARY – March 8, 2019
SAN DIEGO – A leader of the Westside Crips was sentenced to 82 months in prison yesterday for his aggravating role in a racketeering conspiracy involving sex trafficking, narcotics trafficking and other violent crimes as well as possession of a controlled substance with the intent to distribute.
According to court records, Corey DeShawn Austin, aka “Westwood,” admitted to his membership and association with the Westside Crips, which primarily operated in Oceanside and elsewhere. Austin pleaded guilty to RICO Conspiracy and Possession with Intent to Distribute Controlled Substances on August 31, 2018. In furtherance of these crimes, Austin, the lead defendant, admitted he engaged in promoting prostitution of adult females between 2013 and 2015, including while he was in state custody for another offense. Austin further admitted he possessed narcotics for sale in 2013. Austin also admitted he promoted the Westside Crips during the RICO conspiracy through photos posted of himself throwing up gang signs and wearing gang colors showing his allegiance to Westside Crips on social media between 2013 and 2016.
At sentencing, the parties disputed whether Austin had an aggravating role in the RICO conspiracy – a finding that would mean a longer sentence. After hearing testimony from the government and defense expert witnesses at an evidentiary hearing on March 4, 2019, and reviewing the submissions by the parties, U.S. District Judge John A. Houston ruled yesterday that Austin had an aggravating role in the conspiracy because the testimony and evidence proved that he managed, supervised, and directed the criminal activity conducted by other members of the Westside Crips. Judge Houston noted that Austin’s conduct was particularly aggravating because he was managing, supervising and directing other gang members while he was in prison, using a contraband prison cell phone.
Austin was charged in 2017 as part of a larger investigation involving twelve other members of the Westside Crips Criminal Enterprise. The following table provides a summary of the crimes and sentences for 10 of the other defendants who have been convicted and sentenced in this case:
Defendant
Charge(s)
Sentence
Ameer Fareed Roby
aka “Tiny Dum Dum”
RICO Conspiracy
48 months in prison,
3 years supervised release
Michael Anthony Sullivan
aka “Du-Low”
RICO Conspiracy
36 months in prison,
3 years supervised release
Peter Andrew Miranda
aka “Fat Boy”, “Baby Rocks”, “Lil’ Burger”
RICO Conspiracy
45 months in prison,
3 years supervised release
Shane Robert Anderson
aka “Tiny Westwood”,
“Tiny West”
RICO Conspiracy
28 months in prison,
3 years supervised release
Jasiri Malcolm Lacey
aka “Baby Westwood”,
“Baby West”
RICO Conspiracy
72 months in prison,
3 years supervised release
Demetrius Montre McFarland
aka “Mechii Ruu”
RICO Conspiracy
52 months in prison,
3 years supervised release
Travion McHenry
aka “Too Much”
RICO Conspiracy
Drug Trafficking
54 months in prison,
3 years supervised release
Richard Cleveland
aka “Face”
RICO Conspiracy
57 months in prison,
3 years supervised release
Larry Darnell Monroe
RICO Conspiracy
Drug Trafficking
151 months in prison,
3 years supervised release
180 months in prison,
3 years supervised release
Umesh Oza
aka “Kevin”
RICO Conspiracy
4 months in prison,
180 days home confinement,
3 years supervised release
“The sentence imposed yesterday for one of the leaders of the Westside Crips demonstrates the seriousness of these crimes and will hopefully deter younger members of the community from becoming members of criminal street gangs,” said U.S. Attorney Robert S. Brewer. “Sex trafficking is a crime that has long-lasting and devastating effects on the women who are controlled by gang members. This office will continue to target criminal street gangs that promote serious crimes, such as sex trafficking, narcotics trafficking, and other violent crimes in our communities.”
Brewer praised prosecutors Alessandra Serano and Joseph Orabona and law enforcement partners for investigation and legal work that has resulted in a halt to dangerous gang activity.
“One of the top priorities for the DEA in San Diego is dismantling criminal street gangs that profit by selling sex and drugs in our community. The profit, cold hard cash, in turn fuels the violence on our streets,” said Special Agent in Charge Karen Flowers. “DEA will continue to target and put away criminal street gang members like Mr. Austin because it makes San Diego County a safer place to live.”
“For over a decade, this sophisticated street gang terrorized the streets of Oceanside and the surrounding areas for profit,” said IRS Criminal Investigation’s Special Agent in Charge Ryan L. Korner. “Our agency plays a unique role in federal law enforcement’s resolve to dismantle criminal gang enterprises. Our agents target the profit and financial gains of these violent organizations, following the money in an effort to disrupt these organizations and bring their members to justice.”
“The Oceanside Police Department would like to thank the U.S. Attorney's Office and other law enforcement agencies for their collaboration and hard work during this operation. “It is collective efforts like this that highlight why the San Diego region is a model for other law enforcement agencies to emulate, to keep their communities safe,” said Oceanside Police Chief Frank McCoy.
The remaining defendant, William Bright, has a sentencing hearing on May 13, 2019.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Case Number: 17CR0270-JAH
Corey DeShawn Austin aka “Westwood” Age: 38 Oceanside, CA
SUMMARY OF CHARGES
Title 18, United States Code, Section 1962(d) - Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity
Maximum Penalties: 20 years’ in prison, a fine of $250,000, three years of supervised release
Title 21, United States Code, Section 841(a)(1) – Possession with Intent to Distribute Controlled Substances
Maximum Penalties: 5 years’ in prison, a fine of $250,000, three years of supervised release
AGENCIES
North County Narcotics Task Force
Drug Enforcement Administration
Oceanside Police Department
Internal Revenue Service
West Baltimore Drug Dealer Sentenced to 24 Years in Federal Prison for Conspiracy to Distribute FentanylRead the Press Release
Baltimore, Maryland – On March 7, 2018, U.S. District Judge Richard D. Bennett sentenced James Johnson, age 50, of Baltimore, Maryland to 24 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute between 12 and 36 kilograms of fentanyl. Since as little as 2 milligrams of fentanyl is a fatal dose, 12 kilograms is enough to kill 6 million people, or roughly the population of Maryland. Johnson also possessed six firearms in furtherance of his drug trafficking. During the time of this drug conspiracy, Johnson was on supervised release for a previous federal drug conviction. At yesterday’s sentencing Judge Bennett found that Johnson violated the conditions of his supervised release and sentenced him to 15 months in prison, concurrent to his 24-year sentence.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Acting Commissioner Michael Harrison of the Baltimore Police Department.
“Law enforcement partners are working together to arrest and prosecute those who peddle deadly fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution. More and more people are dying from fentanyl overdoses in Baltimore City and throughout Maryland. We must do everything we can to reduce overdose deaths from this drug and from all opioids.”
According to his plea agreement, from July 2016 through March 2017, law enforcement investigated drug traffickers operating in the Gilmor Homes area of west Baltimore, including Johnson, co-conspirator Sharafa Buhari, and others. Over the course of the investigation law enforcement obtained court-ordered interceptions of communications on Johnson’s cellular telephone, which indicated that Johnson was distributing fentanyl and heroin in Baltimore and elsewhere. Johnson used his cellular telephone to facilitate and discuss his drug trafficking with Buhari and others. Intercepted conversations also established a connection between Johnson and addresses in Baltimore, including addresses in the 1500 block of North Gilmor Street, and the 800 block of West Lombard Street, where Johnson told co-conspirators to meet him.
For example, on January 12, 2017, Johnson and Buhari discussed Buhari coming to a residence in the 1500 block of North Gilmor Street. On January 12, video surveillance captured Buhari carrying a black backpack, arriving at the residence at 6:42 p.m. and eventually departing at 7:16 p.m. carrying the same backpack. On January 20, 2017, Buhari called Johnson to say that he was coming the next day. On January 21, 2017, Buhari and two co-conspirators were stopped by law enforcement as they walked away from a bus that had recently arrived in Baltimore from New York. Law enforcement recovered 2.45 kilograms of suspected heroin from the black backpack and a suitcase being carried by the two co-conspirators.
One of the co-conspirators told investigators that Buhari had asked him to carry the backpack to Baltimore. Following the heroin seizure, FBI agents obtained court-ordered authorization to track Buhari’s cellular phone. The FBI also determined that Buhari purchased a one-way ticket to fly from John F. Kennedy Airport (“JFK”) in New York to his home country of Nigeria. Investigators obtained a federal arrest warrant for Buhari on February 1, 2017, and he was arrested the next day inside JFK by members of FBI New York and Customs and Border Patrol as he attempted to board the Nigeria-bound flight. Agents recovered over $11,000 and two cell phones from his five bags of luggage, as well as numerous adult diapers that Buhari intended to transport to Nigeria.
On March 22, 2017, search warrants were executed at the residences on North Gilmor and West Lombard Streets that were associated with Johnson. Law enforcement recovered a total of 8,500 grams of fentanyl and 17,250 grams of heroin, six firearms, and approximately $700,000 in cash. As a result, it was foreseeable to Johnson that the conspirators would distribute between 12 and 36 kilograms of fentanyl.
Sharafa Buhari, age 52, who resided in Brooklyn, New York, previously pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin and was sentenced for four years in federal prison.
United States Attorney Robert K. Hur praised the FBI, the DEA Baltimore Field Office, and the Baltimore Police Department for their work in the investigation. Mr. Hur also thanked the DEA in Norfolk, Virginia and the New York FBI and Customs and Border Patrol agents who assisted in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Zachary Stendig and Michael C. Hanlon, who prosecuted this Organized Crime Drug Enforcement Task Force case.
# # #
Venezuelan Minister and Former Vice President Tareck Zaidan El Aissami Maddah Charged with Violations of the Foreign Narcotics Kingpin Designation ActRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Angel M. Melendez, the Special Agent in Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today that former Venezuelan Vice President TARECK ZAIDAN EL AISSAMI MADDAH (“EL AISSAMI”) and Venezuelan businessman SAMARK JOSE LOPEZ BELLO were charged in Manhattan federal court with criminal violations of the Foreign Narcotics Kingpin Designation Act (“Kingpin Act”) and sanctions imposed in February 2017 by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) pursuant to the Kingpin Act. Related charges under the Kingpin Act were also filed against VICTOR MONES CORO, ALEJANDRO MIGUEL LEON MAAL, MICHOLS ORSINI QUINTERO, and ALEJANDRO ANTONIO QUINTAVALLE YRADY. The case is assigned to U.S. District Judge Alvin K. Hellerstein. MONES CORO and ORSINI QUINTERO were arrested this morning in Florida. MONES CORO appeared this morning before a United States Magistrate Judge in West Palm Beach, and ORSINI QUINTERO appeared this morning before a United States Magistrate Judge in Fort Lauderdale.
Manhattan U.S. Attorney Geoffrey S. Berman said: “International sanctions restrain the activities of individuals and countries deemed to have policies and practices incompatible with the U.S. from receiving the full benefit of economic, political, humanitarian, and other support the U.S. provides globally. Former Venezuelan Vice President Tareck Zaidan El Aissami Maddah allegedly evaded the sanctions imposed by OFAC by employing U.S. companies to provide international transport via private jet. The enforcement of these sanctions is critical to the national security interests of the U.S., and I commend our law enforcement partners for their vigilance and assistance in bringing today’s charges.”
Special Agent in Charge Melendez said: “Tareck Zaidan El Aissami Maddah has held key positions in the Government of Venezuela, including that of former Vice President and current Minister of Industry and National Production. He has used his position of power to engage in international drug trafficking, earning him the designation of Specially Designated Narcotics Trafficker, along with his business partner Samark Lopez Bello. It is alleged that those arrested today, looking to fill their pockets with dirty money, aided El Aissami and Lopez Bello in circumventing sanctions and violating the Kingpin Act, an OFAC designation targeting those who pose a threat to the national security, foreign policy, and economy of the United States. El Aissami and Lopez Bello allegedly used private jets to set up private meetings around the globe including Turkey and Russia. It is necessary to impose sanctions against foreign persons seeking to gain power and control by circumventing the law, and today’s indictments reflect HSI New York’s El Dorado Task Force resolve in holding those willing to violate such sanctions accountable. Both El Aissami and Lopez Bello will have to think twice before leaving Venezuela, as they are wanted to face justice here in New York.”
As alleged in the Indictment and Superseding Indictments unsealed in federal court:[1]
EL AISSAMI became the Vice President of Venezuela in approximately January 2017. In February 2017, OFAC designated EL AISSAMI and LOPEZ BELLO as Specially Designated Narcotics Traffickers pursuant to the Kingpin Act and related regulations. As a result of OFAC’s designations, U.S. persons are generally prohibited from, among other things, engaging in transactions with or providing services to EL AISSAMI and LOPEZ BELLO absent authorization from OFAC. EL AISSAMI and LOPEZ BELLO nevertheless worked with, among others, U.S. citizens MONES CORO and LEON MAAL, as well as ORSINI QUINTERO and QUINTAVALLE YRADY, who held U.S. visas at the time of the crimes, in an effort to violate and evade OFAC’s sanctions by obtaining travel services, including private jet charters for EL AISSAMI, LOPEZ BELLO, and their relatives and associates. EL AISSAMI and LOPEZ BELLO paid for these services at times through intermediaries who delivered bulk cash in Venezuela.
EL AISSAMI, LOPEZ BELLO, MONES CORO, and LEON MAAL used American Charter Services LLC and its affiliates, all U.S. companies, in connection with the transportation services provided to EL AISSAMI and LOPEZ BELLO in violation of the Kingpin Act and the OFAC sanctions. For example, in September 2018, MONES CORO used an American Charter Services account in the United States to pay expenses for an upcoming private flight by LOPEZ BELLO. EL AISSAMI, LOPEZ BELLO, MONES CORO, and LEON MAAL also used SVMI Solution, LLC, another U.S. company, to receive payments for transportation services provided to EL AISSAMI and LOPEZ BELLO in violation of the Kingpin Act and the OFAC sanctions, such as a July 2018 funds transfer sent from Manhattan, New York to an SVMI Solution account in Florida. Earlier this year, LEON MAAL helped EL AISSAMI charter a private flight from Vnukovo International Airport in Russia to Simón Bolívar International Airport in Venezuela on February 23, 2019.
* * *
EL AISSAMI, 44, of Venezuela, LOPEZ BELLO, 44, of Venezuela, MONES CORO, 51, of Florida, and LEON MAAL, 41, of Florida, are each charged in five counts: (1) conspiring to use American Charter Services LLC and SVMI Solution, LLC to engage in transactions prohibited by the Kingpin Act and related regulations, and to evade sanctions imposed by OFAC pursuant to the Kingpin Act and related regulations, (2) using American Charter Services LLC to engage in transactions prohibited by the Kingpin Act and related regulations, (3) using American Charter Services LLC to evade and attempt to evade sanctions imposed by OFAC pursuant to the Kingpin Act and related regulations, (4) using SVMI Solution, LLC to engage in transactions prohibited by the Kingpin Act and related regulations, and (5) using SVMI Solution, LLC to evade and attempt to evade sanctions imposed by OFAC pursuant to the Kingpin Act and related regulations. If convicted, each of the five counts carries a maximum penalty of 30 years in prison, for a total maximum of 150 years in prison on all accounts faced by EL AISSAMI, LOPEZ BELLO, MONES CORO, and LEON MAAL.
ORSINI QUINTERO, 42, of Florida, and QUINTAVALLE YRADY, 36, of Panama, are each charged with one count of conspiring to use American Charter Services LLC and SVMI Solution, LLC to engage in transactions prohibited by the Kingpin Act and related regulations, and to evade sanctions imposed by OFAC pursuant to the Kingpin Act and related regulations. If convicted, this count carries a maximum penalty of 30 years in prison.
Mr. Berman praised the outstanding efforts of U.S. Customs and Border Protection, the DEA’s Special Operations Division Bilateral Investigations Unit, the DEA’s Miami Field Division, and the U.S. Attorney’s Office for the Southern District of Florida. Mr. Berman also thanked the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division, and OFAC.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III and Amanda L. Houle are in charge of the prosecution.
The charges contained in the Indictment and Superseding Indictments are merely allegations, and the defendants are presumed innocent unless and until proven guilty. The potential maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
U.S. Attorney’s Office for the Western District of Louisiana takes part in largest-ever nationwide elder fraud sweepRead the Press Release
SHREVEPORT, La. – Attorney General William P. Barr and U.S. Attorney David C. Joseph announced today the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than 2 million Americans, most of them elderly.
In the Western District of Louisiana, the sweep included the indictment of Gregory Alan Smith, 56, of Shreveport, and Kirbyjon H. Caldwell, 65, of Houston, Texas, who are charged with defrauding investors out of more than $1 million. According to the indictment returned by a federal grand jury on March 29, 2018, Smith used his influence and status as the operator and manager of Smith Financial Group LLC in Shreveport, and Caldwell used his influence and status as pastor at a prominent Houston church to lure investors into sinking their money into what they thought were high-return investments. Instead of investing the funds, the defendants used them to pay personal loans, credit card balances, mortgages, vehicle purchases and other personal expenses. Some of the victims were seniors.
“In Louisiana we teach our children to honor and respect their elders. Unfortunately, some in our society target the elderly — betraying their confidence and stealing their hard-earned savings,” said U.S. Attorney Joseph. “My office will continue working daily with our law enforcement partners to protect the elderly members of our communities from those who would steal from them through false promises and fraudulent schemes. Make no mistake, we will expose those who prey upon our seniors and bring them to justice.”
“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”
The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.
The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
A fact-sheet with technical-support fraud case information can be found here.
A fact-sheet with cases on mass mailing fraud can be found here.
A fact-sheet with examples of a few elder fraud cases involving extradition in which the Office of International Affairs played a substantial role can be found here.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
U.S. Attorney’s Office for the Northern District of Georgia takes part in largest-ever nationwide elder fraud sweepRead the Press Release
ATLANTA – Attorney General William P. Barr and U.S. Attorney Byung J. “BJay” Pak announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.
“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”
“The U.S. Attorney’s Office has made protecting the elderly a priority. As part of the elder fraud sweep, this Office brought multiple indictments against defendants responsible for defrauding hundreds of victims, many of them are seniors, out of nearly $5 million,” said U.S. Attorney Byung J. “BJay” Pak. “We remain focused on prosecuting the criminals who target our community’s seniors with financial scams and abuse. Citizens always should be wary of callers who make threats and ask for personal information, and should contact law enforcement if they believe that they have fallen victim to one of these scams.”
Three cases from the Northern District of Georgia include:
- United States v. Mehboob Mansurali Charania: On November 6, 2018, the defendant was charged based on his alleged involvement in a transnational criminal organization that victimized over 340 people in the United States through a fraudulent India-based call-center scheme, resulting in over $200,000 in losses. Criminal India-based call centers seek to profit by exploiting United States residents, including the most vulnerable members of our community, by impersonating officials from the Internal Revenue Service or other scams. The call center operators threaten potential victims with arrest, imprisonment, or fines if they do not pay supposed taxes, penalties, or fees. If the victims agree to pay, the call centers then turn to a network of U.S.-based co-conspirators to liquidate and launder the extorted funds by purchasing prepaid debit cards or through wire transfers, including through MoneyGram and Western Union, to the attention of fictitious names and U.S.-based defendants and their co-conspirators. Assistant U.S. Attorney Jolee Porter is prosecuting this case.
- United States v. Sean Kelly: On January 4, 2019, the defendant pled guilty to mail fraud and securities fraud. The defendant used his companies, Lion's Share Financial of East Cobb, Inc., Lion's Share & Associates, Inc., and Lionsshare Tax Services, LLC, to defraud his investors of at least $1 million. His victims included veterans and elderly retirees. As part of his scheme, the defendant promised that he would invest his victim’s funds in a variety of investment products, but instead spent it on personal expenses including mortgage payments, Super Bowl tickets, vacations, and large cash withdrawals. Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, is prosecuting this case.
- United States v. Silvia Sanchez Valverde, et al.: These five defendants operated a sweepstakes scam that targeted the elderly. From February 2016 through September 2017, dozens of victims were contacted by telephone and told that they had won a sweepstakes or lottery. The victims were told that they could receive their sweepstakes winnings after they paid various expenses, such as taxes and fees. The victims were directed to pay the expenses to various companies controlled by the defendants. The victims then mailed payments via personal and cashier’s checks to addresses that were linked to mailboxes rented by the defendants. The defendants deposited the checks, totaling over $3.5 million, into their bank accounts and then transferred the majority of the funds to Costa Rica. The defendants were sentenced to prison terms ranging from two to five years in prison. Assistant U.S. Attorneys Kelly K. Connors and Cassandra J. Schansman prosecuted these cases.
The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.
The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
A fact-sheet with technical-support fraud case information can be found at /media/993261/dl?inline.
A fact-sheet with cases on mass mailing fraud can be found at /media/993271/dl?inline.
A fact-sheet with examples of a few elder fraud cases involving extradition in which the Office of International Affairs played a substantial role can be found at /media/993266/dl?inline.
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.
U.S. Attorney’s Office Hosts Second Annual Reentry SimulationRead the Press Release
“A Day in the Life”
West Palm Beach - Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Jeri Muoio, Mayor of the City of West Palm Beach, Stephanie Sejnoha, Public Safety Director of the Palm Beach County Public Safety Department, Steve Craig, President and Chief Executive Officer of CareerSource of Palm Beach County, and Willie Bentley, Northwest Community Center Director for the Salvation Army, announced the successful completion of the second annual Reentry Simulation held today at the Salvation Army’s Northwest Community Center. More than 120 community members, officials and stakeholders attended the event, which simulates the struggles and challenges faced by individuals who are transitioning from incarceration back into society. The U.S. Attorney’s Office for the Southern District of Florida and its dedicated partners continue to take significant steps to reduce recidivism and help formerly incarcerated individuals successfully contribute to their communities.
The Reentry Simulation is just one of many initiatives that support Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction strategy. Locally, PSN is carried out by the Violence Reduction Partnership (VRP), a holistic, three-pronged approach to violence reduction – one focused not only on enforcement, but also on prevention and reentry. Utilizing this multi-faceted approach, the VRP aims to reduce crime and promote safer and more resilient communities.
Each year, more than 600,000 citizens return to our neighborhoods after serving time in federal and state prisons, and another 11.4 million individuals cycle through local jails. The long-term impact of a criminal record prevents many returning citizens from obtaining employment, housing, a quality education, adequate health care, personal identification and even financial credit. These often-crippling barriers can contribute to a cycle of incarceration that makes it difficult for even the most well intentioned individuals to continue on the right path and avoid reentering the criminal justice system. Within the Southern District of Florida, comprehensive reentry initiatives promote the successful reintegration of returning citizens and strive to reduce recidivism. The goal is to help those who have paid their debt to society best prepare for substantive opportunities beyond the prison gates, promote family unity, contribute to the health of our economy, advance public safety and sustain the strength of our local communities.
Participants in today’s VRP Reentry Simulation gained an understanding of the significant obstacles faced by men and women, upon their release from incarceration. Employment opportunities, social services, and resources are needed in order to support the returning citizens’ successful transition back into our local community.
In addition to the Re-Entry Simulations, the U.S. Attorney’s Office and our partners support other invaluable reentry initiatives.
In 2016, the Southern District of Florida launched its first ever Reentry Court, known as the Court-Assisted Reentry (CARE) Initiative. The CARE Initiative is a problem-solving, collaborative effort between U.S. District Court, the U.S. Probation Office, the U.S. Attorney’s Office and Federal Public Defender representatives, and a Department of Justice Re-Entry Specialist. The CARE Team’s mission is to: help those returning from prison to become productive members of society by providing coordination for job training and placement, housing assistance, educational support, and the medical, substance abuse and mental health referrals; promote community safety by reducing recidivism and victimization; and reduce taxpayer spending on incarceration. Through bi-weekly court sessions, the CARE Team assesses each participants’ progress, addresses any issues with his or her reentry, decides whether wrap-around services can be provided, and determines appropriate rewards and/or sanctions.
To further support our returning citizens, the U.S. Attorney’s Office, alongside the Federal Bureau of Prisons, U.S. Probation and non-profit service providers have conducted Reentry and Resource (“in-reach”) Meetings at both the Federal Detention Center and the Federal Correctional Institution located in the Southern District. The meetings provide inmates preparing to be released from incarceration with the tools and information they need to navigate their successful re-entry into society and reduce their risk of recidivism. Since 2013, more than 300 individuals have attended the meetings and received a Reentry Resource Guide.
The U.S. Attorney’s Office and our community partners also continue to support the South Florida Reentry Center Hub, a traveling one-stop service center for returning citizens and their families. The Reentry Center Hub provides returning citizens with easy, centralized access to a variety of reentry services within their local communities. Since 2014, Reentry Center Hub events, held in Fort Pierce, Miami Gardens, Liberty City and Goulds, Florida, have reached more than 400 returning citizens and their families.
The success of these initiatives and today’s simulation would not have been possible, without community support. In particular, of the City of West Palm Beach Mayor’s Village Initiative, a collaborative multidisciplinary strategy to prevent and reduce youth violence and improve outcomes for African American boys and young men in the North End of the City of West Palm Beach. Also, the Palm Beach County Public Safety Department, Justice Services Division, Reentry Initiative and CareerSource of Palm Beach County, both of which currently provide services to returning citizens to reduce recidivism.
Additional information regarding the CARE and VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.
U.S. Attorney Uses Civil and Criminal Authorities to Shut Down Drug-Infested HotelRead the Press Release
A U.S. District Judge has granted federal prosecutors’ motion to shut down a drug-infested hotel located just 1000 feet from a Dallas elementary school, U.S. Attorney Erin Nealy Cox announced today.
On Thursday, a task force of more than 50 agents and officers, accompanied by several attorneys, converged on Han Gil Hotel Town to effect arrests, execute search warrants, and post notices requiring the immediate clearing of the premises.
The Han Gil – which prosecutors say served as home base for multiple drug dealers selling cocaine, heroin and meth – became a “safe haven for drug distributors” and a “breeding ground for escalating criminal activity,” the government argued in a civil motion requesting the hotel’s immediate closure.
The Court’s resulting Temporary Restraining Order, signed Wednesday by Judge C. David C. Godbey, prohibits anyone other than Han Gil proprietors and immediate family from occupying the hotel, which the Court agreed likely “endangers the general welfare of the community.”
“The Han Gil is a magnet for drug dealers and violent criminals and needed to be shut down immediately for public safety reasons,” said U.S. Attorney Nealy Cox. “Instead of simply picking off dealers one-by-one, we asked the Court to issue a Temporary Restraining Order enjoining the hotel’s further operation. We believe this business was nothing but a front for criminal activity and posed significant danger to our community. We will continue to push to keep it shut down.”
Over the past eight months, the hotel, which is essentially caddy corner to Herbert Marcus Elementary, has seen three deaths, two non-fatal shootings, and dozens of drug-related incidents, according to the motion.
The husband-wife duo operating the Han Gil, Su Amos and Micha Mun, brazenly allowed controlled substances to be distributed on their property, the motion asserts. In return for an $80 per day “drug tax,” Mr. and Mrs. Mun allegedly permitted dealers to distribute drugs from inside guest rooms.
The motion alleges that at least one exterior door of the Han Gil was left unlocked so individuals who weren’t renting their own rooms could access the rooms where drug deals occurred. Mr. Mun also permitted dealers to install cameras and peepholes in order to detect and avoid police, and even gave dealers advance notice of upcoming inspections. On at least one occasion, he claimed to have deleted surveillance video evidence of an overdose victim being carried from the premises.
About a month after another woman with a history of drug abuse died in one of the rooms at the Han Gil, law enforcement recovered her body in a nearby wooded area.
“Rather than requesting assistance to combat this criminal activity,” the government’s motion says, “the Muns take advantage of it, knowingly profiting from the rampant drug use and sales occurring at the Han Gil.”
In a separate criminal case, Mr. Mun and his hotel corporation, One Way Investments, Inc. have been indicted on one count of maintaining a drug-involved premises, a violation of the Controlled Substances Act. If convicted, Mr. Mun, who is currently in federal custody, faces up to 20 years in federal prison and a fine of $500,000, while the corporation faces a fine of up to $2 million.
The indictment against Mr. Mun also includes drug charges against several dealers, including Erick Dewayne Freemen, aka “Stuff,” Kendrick Lamel Washington, aka “Kiki”, Kimberly Rosha Robinson, aka “Miss K,” and others. Mr. Freeman and Mr. Washington have also been charged with firearm offenses. These defendants face potential sentences of 10 years to life in prison.
“The Han Gil is a well-known haven and attraction for drug dealers and users,” said DEA Special Agent in Charge of the Dallas Division Clyde E. Shelley, Jr. “It is a place linked to violence and death within close proximity of a school. We will continue to pursue these investigations and make our communities safer.”
The government’s complaint and motion are merely allegations of violations of the law, not evidence or findings of liability. Similarly, an indictment is merely an accusation of criminal conduct, not evidence. All criminal defendants are presumed innocent until proven guilty in a court of law.
The Drug Enforcement Administration conducted the investigation with assistance from the Federal Bureau of Investigation, Coppell Police Department, Dallas Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the U.S. Marshal’s Service, Grand Prairie Police Department, Arlington Police Department, Grapevine Police Department, Lancaster Police Department, the State Department, IRS, U.S. Postal Inspection Service, Plano Police Department, Farmers Branch Police Department, Homeland Security Investigations, Garland Police Department, Rowlett Police Department, Denton Police Department, Lewisville Police Department and McKinney Police Department. Assistant U.S. Attorneys Scott Hogan, NDTX Civil Chief, Lindsey Beran, NDTX Deputy Civil Chief, and Braden Civins filed the civil motion. Assistant U.S. Attorneys Rick Calvert, Chief of NDTX’s Narcotics Section, and Phelesa Guy, Deputy Chief of the Narcotics Section, are prosecuting the criminal case.
U.S. Attorney Brady: Western Pennsylvania’s Response to the Opioid Epidemic Resulted in a Dramatic Decrease in Overdose Deaths in 2018Read the Press Release
PITTSBURGH – Today, United States Attorney Scott W. Brady announced a dramatic decrease in overdose deaths in western Pennsylvania in 2018. Overdose deaths are down 43% throughout the 25 counties in the Western District of Pennsylvania. This includes significant decreases in the counties most impacted by the crisis, including of 50% in Beaver County, 50% in Butler County, 47% in Lawrence County, 47% in Allegheny County, 44% in Washington County and 37% in Westmoreland County.
"This crisis has impacted every community in western Pennsylvania," said U.S. Attorney Brady, calling western Pennsylvania "Ground Zero" for the opioid epidemic. "From day one of my administration, I vowed to fight the opioid epidemic with every tool the Department of Justice has, and to do so with new urgency."
United States Attorney Brady created a new Narcotics and Organized Crime Section and filled it with the office’s most experienced narcotics prosecutors. He appointed an Opioid Coordinator to serve as a point person for the district’s strategic efforts, and obtained funding from the Department of Justice for new federal prosecutors. With the international reach of federal law enforcement, and strong mandatory minimum penalties under federal law, the United States Attorney’s Office brings significant resources to the fight in investigating and prosecuting opioid traffickers.
Additionally, United States Attorney Brady has prioritized cyber investigations into Darknet marketplaces and placed a continued emphasis on health care professionals who abuse their prescribing privileges. Thus far, the U.S. Attorney’s Office in the Western District of Pennsylvania has prosecuted 25 health care professionals for illegal drug distribution.
"Every life is precious—every person addicted to drugs is a son, daughter, mother, father, brother or sister. We will continue to fight for every life," said U.S. Attorney Brady. Brady praised the efforts of federal, state and local law enforcement partners in combatting the epidemic, as well as the crucial role that the health care and treatment communities have played in treating those with opioid abuse disorder.
Three Romanian citizens plead guilty to participating in a multi-million dollar “vishing and smishing” schemeRead the Press Release
ATLANTA - Robert Codrut Dumitrescu pleaded guilty to federal charges of wire fraud conspiracy, computer fraud and abuse, and aggravated identity theft in connection with a scheme, orchestrated from Romania, which resulted in the illegal intrusion into computer servers in the United States, deployment of phishing messages to thousands of victims, and subsequent theft of victims’ social security numbers and bank account information. His conspirators, Teodor Laurentiu Costea and Cosmin Draghici, also pleaded guilty earlier this year to federal charges related to this scheme.
“These defendants thought they could hide behind their computers in Romania and defraud the citizens of the Northern District of Georgia and elsewhere across the United States,” said U.S. Attorney Byung J. “BJay” Pak. “These guilty pleas resulted from a tireless investigative effort to locate these fraudsters and bring them to justice in our District. We will continue to protect our citizens from cyber-criminals, no matter how far the investigation reaches.”
“Cyber criminals cannot hide in the shadows of the internet no matter where they are,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI won’t let geographic boundaries stop us from pursuing those persons who cause tremendous financial pain to U.S. citizens. To the victims of these three conspirators and other cyber criminals, we will continue to identify them and pursue justice.”
According to U.S. Attorney Pak, the charges, and other information presented in court: From approximately October 2011 through February 2014, Robert Codrut Dumitrescu, Teodor Laurentiu Costea and Cosmin Draghici conducted a “vishing” and “smishing” scheme from Romania. “Vishing” is a type of phishing scheme that communicates a phishing message, that is, a message that purports to be from a legitimate source, in this case the victims’ banks, through a voice recording. “Smishing” is similar to “vishing,” but communicates a phishing message through text messages.
As part of the scheme, the defendants compromised computer servers located in the Northern District of Georgia, and elsewhere, and installed both interactive voice response and bulk emailing software which initiated thousands of telephone calls and text messages to victims in the Northern District of Georgia, and across the United States, tricking them into disclosing Personally Identifiable Information (PII) such as financial account numbers, PINs, and social security numbers. When a victim received a telephone call, the recipient would be greeted by a recorded message falsely claiming to be a bank. The interactive voice response software would then prompt the victim to enter their PII.
When a victim received a text message, the message purported to be from a bank and directed the recipient to call a telephone number hosted by a compromised Voice Over Internet Protocol server. When the victim called the telephone number, they were prompted by the interactive voice response software to enter their PII. The stolen PII was stored on the compromised computer servers and accessed by Dumitrescu and Costea, who then sold or used the fraudulently obtained information with the assistance of Draghici.
At the time of their arrests in Romania, Dumitrescu possessed 3,278 financial account numbers, Costea possessed 36,050 financial account numbers, and Draghici possessed 3,465 financial account numbers – all fraudulently obtained through this scheme. Based upon these numbers alone, the estimated loss amount is expected to exceed $21,000,000.
On August 16, 2017, a grand jury charged Robert Codrut Dumitrescu, 41, Teodor Laurentiu Costea, 42, and Cosmin Draghici, 29, all of Ploiesti, Romania, with multiple federal computer and fraud-related crimes in connection with this scheme. Dumitrescu, Draghici, and Costea were extradited from Romania to Atlanta last year to face these charges.
Sentencing is scheduled for Costea on June 11, 2019 at 2:00 p.m., for Draghici on June 12, 2019 at 11:00 a.m., and for Dumitrescu on July 23, 2019 at 2:00 p.m., all before U.S. District Judge Thomas W. Thrash.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Michael Herskowitz, Chief of the Cyber and Intellectual Property Crime Section, 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.
Third Rochester Man Pleads Guilty to Stealing MailRead 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 Cordell James, 28, of Rochester, NY, pleaded guilty to conspiracy to steal mail before U.S. Magistrate Judge Marian W. Payson. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that James was employed by a U.S. Postal Service contractor at the Greater Rochester International Airport. While performing his job, the defendant conspired with two other individuals, co-defendants Michael Harris and Chansen Diaz, to steal gift cards and cash from the mail. The three men then used the stolen items to finance their lifestyles.
Michael Harris and Chansen Diaz were previously convicted and are awaiting sentencing.Today’s plea is the result of a joint investigation by the United States Postal Service Office of Inspector General, under the direction of Special Agent-in-Charge Kenneth Cleevely, Eastern Area Field Office, Pittsburgh, PA, and Inspectors with the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin.
Sentencing will be scheduled at a later date before U.S. District Judge David G. Larimer.
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Ten indicted in Evansville Fentanyl distribution caseRead the Press Release
Evansville – United States Attorney Josh J. Minkler announced the indictment of 10 fentanyl traffickers, which was unsealed today in the U.S. District Court in Evansville, Indiana. Law enforcement officers from the region participated in the execution of arrest and search warrants related to the investigation on persons and residences in Evansville and elsewhere. Initial hearings for seven of the defendants charged in the indictment will be held today in the Evansville United States District Court starting at 3:00 p.m.
The indictment is the result of an investigation by the Evansville office of the Drug Enforcement Administration, Evansville Vanderburgh County Drug Task Force, Evansville Police Department, Federal Bureau of Investigation, Bureau of Alcohol Tobacco, Firearms and Explosives, Internal Revenue Service, and other federal, state and local law enforcement agencies. The members of the conspiracy are alleged to have brought large amounts of fentanyl pills into the Evansville, Indiana area from Phoenix, Arizona through parcel shipments for further distribution.
The indictment charges ten individuals as follows:
- Jacob Beshear, 25, Evansville, Indiana
- Crystal Vidal, 27, Phoenix, Arizona
- Joshua Carr, 38, Phoenix, Arizona
- David Wargel, 24, Evansville, Indiana
- Ciara Wargel, 24, Evansville, Indiana
- Matthew Hunter Bennett, 22, Evansville, Indiana
- Lauryn Smith, 19, Evansville, Indiana
- Austin Davis, 19, Evansville, Indiana
- Madison Brown, 23, Boonville, Indiana
- Abigail Shipley, 20, Newburgh, Indiana
“Laser focus on dismantling organizations involved in the distribution of fentanyl and the deadly combination of fraudulent firearms purchases is a top priority for the Department of Justice and for this office,” said Minkler. “Today we recognize the collaborative effort and partnerships old and new as we announce again our desire to make the Southern District of Indiana one of the most inhospitable communities to traffic illicit drugs.”
Fentanyl and fentanyl-related substances represent the deadly convergence of the synthetic drug threat with the current national opioid epidemic. DEA Indianapolis Acting Assistant Special Agent in Charge Dan Gordon emphasized, “DEA recognizes the importance of working with our law enforcement counterparts to attack the violent drug trafficking networks producing, importing, and profiting from these deadly drugs. The DEA Mission is to protect our communities against narcotics traffickers who prey on those who suffer the scourge of addiction.”
Evansville Police Chief Billy Bolin expects these arrests to send an important message, “We have seen the devastating effects Fetanyl can have on members of our community. Despite the known dangers of Fentanyl abuse, these individuals were willing to profit from its illegal sales. These arrests send a message that the distribution of Fetanyl and other illicit narcotics will not be tolerated in Evansville.” Evansville Police Chief Billy Bolin
The Indictment charges ten (10) defendants with conspiracy to distribute fentanyl. Two (2) of the defendants, Beshear and Vidal, are charged with money laundering. Three (3) of the defendants, Beshear, David Wargel, and Brown, are charged with firearms straw purchases. According to Assistant United States Attorney Frank E. Dahl III, who is prosecuting the case for the government, the defendants face possible sentences of up to 20 years in prison if convicted.
An Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who traffic in large quantities of illegal opiates and other dangerous drugs. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 3.2
Tax Preparers Charged with Filing False ReturnsRead the Press Release
The owner and operator of First Premier Tax Service, a Philadelphia, Pennsylvania, tax preparation business and a return preparer working at the business, were charged in connection with a scheme to prepare fraudulent tax returns in order to reduce taxes and inflate federal tax refunds for their clients, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney William McSwain for the Eastern District of Pennsylvania.
An indictment returned by a federal grand jury charged both Nvahbulai Quisiah and Gofin Kosia, also known as Kafumba Kromah, with one count of conspiracy to defraud the United States, three counts of wire fraud, and three counts of aggravated identity theft. Quisiah was also charged with eight counts of aiding and assisting in the preparation and filing of a false tax return. Kosia was charged with nine counts of aiding and assisting in the preparation and filing of a false tax return.
According to the indictment, Quisiah and Kosia prepared tax returns for clients for tax years 2009 through 2016 that fraudulently inflated itemized deductions, claimed fictitious Schedule C businesses, and claimed false dependents. As a result of these false items and deductions, the defendants allegedly inflated claimed tax refunds for their clients. The indictment alleges that the defendants knew their clients were not entitled to such refunds. One of the clients was an IRS agent acting in an undercover capacity. The indictment also alleges that the defendants bought and sold personal identifying information of children in order to falsely claim the children as dependents on tax returns for the defendants’ clients.
If convicted of aggravated identity theft, the defendants face a mandatory minimum sentence of two years in prison. Each count of wire fraud carries a maximum sentence of twenty years in prison, while each count of aiding and assisting in the preparation of false tax returns carries a maximum three year prison term. The defendants also face a period of supervised release, fines, and the payment of restitution.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case was investigated by Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Anthony Wzorek and Department of Justice Tax Division Attorney Ann M. Cherry.
Tampa Woman Charged with Distributing Heroin and Fentanyl, Causing DeathRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Joamary Rosario (28, Tampa) with conspiring to distribute a substance that contained a mixture of heroin, fentanyl, and acetyl fentanyl and distributing a substance that contained a mixture of heroin, fentanyl, and acetyl fentanyl, causing the death of an individual. If convicted, Rosario faces a minimum mandatory penalty of 20 years, and up to life, in federal prison.
According to the
indictment and information presented in court, beginning on an unknown date but no later than November 6, 2018, and continuing through November 7, 2018, Rosario conspired with other individuals to possess and distribute heroin, fentanyl, and acetyl fentanyl.On November 6, 2018, Rosario sold 10 plastic bags—each of which contained a substance composed of a mixture of heroin, fentanyl, and acetyl fentanyl—to an individual. The individual injected himself with the substance from one of the bags and died. A medical autopsy revealed that the cause of death was an accidental overdose caused by a mixture of heroin and fentanyl.
On November 7, 2018, an undercover law enforcement officer contacted Rosario, posing as the deceased individual, and asked her to bring him more of what she had delivered the previous night. Rosario agreed. When she arrived at the meeting place, she was arrested and found to be in possession of three more bags of the same substance.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is part of the Middle District of Florida’s anti-opioid strategy to combat opioid trafficking and abuse. This case was investigated by the Hillsborough County Sheriff’s Office Heroin Working Group, with assistance from the Hillsborough County Medical Examiner’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Michael M. Gordon.
Syrian National Charged with StalkingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven has returned an indictment charging ALAA HASAN QALB ALLOUZ, 34, a citizen of Syria last residing in New Haven, with one count of stalking in violation of a protective order.
The indictment was returned on February 5, 2019. Allouz, who has been detained in state and then federal custody since January 10, 2017, appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and entered a plea of not guilty to the charge.
As alleged in court documents, in July 2016, Allouz, his wife and their children emigrated from Syria and settled in New Haven. In April 2017, Allouz’s wife filed a petition for dissolution of marriage, after incidents of domestic violence and Allouz’s state arrests for risk of injury, assault, breach of peace, and violation of a protective order offenses. In July 2017, Allouz’s wife obtained a Standing Criminal Protective Order ordering Allouz not to contact his wife. In August 2017, after Allouz threatened his wife, Allouz’s wife withdrew her petition for dissolution of marriage.
On February 2, 2018, Allouz was taken into custody by U.S. Immigration and Customs Enforcement on a federal arrest warrant and order of deportation, and he was transferred from a Connecticut state prison to a detention center in Massachusetts. It is alleged that, while he was detained in ICE custody, Allouz made multiple phone calls to his wife during which he repeatedly harassed, threatened and intimidated her. He also made calls to other individuals during which he threatened to harm his wife and her family members. Allouz also threatened his wife and her family members in letters and e-mails.
If convicted of the charge, Allouz faces a mandatory minimum term of imprisonment of one year and a maximum term of imprisonment of five years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Douglas P. Morabito.