Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
12 April 2019
Lincoln Man Sentenced to 40 Years in Federal Prison for His Role in Six Armed RobberiesRead the Press Release
United States Attorney Joe Kelly announced that Shawn Brooks, age 27, of Lincoln, Nebraska, was sentenced to 40 years in federal prison today by Chief United States District Judge John M. Gerrard. There is no parole in the federal system. In addition to the 480 months of imprisonment, Brooks will be placed on 8 years of supervised release when he finishes his sentence, and he will be required to pay $2,271 in restitution to all six victims of his crimes. Brooks was convicted by a federal jury of thirteen counts of robbery and gun charges on January 10, 2019.
Brooks was found guilty of one count of conspiracy to commit robbery; five counts of interference with commerce by robbery; one count of bank robbery; and six counts of possessing a firearm in furtherance of a crime of violence. The jury also found that Brooks should receive a sentence enhancement on three of the firearms count. Brooks received two sentence enhancements for brandishing a firearm and one sentence enhancement for discharging a firearm during and in furtherance of a bank robbery. Brooks faced up to life in prison following the jury’s verdict.
Evidence presented at trial showed that between November 29, 2016, and December 30, 2016, Brooks and his co-defendant, Marcus Remus, robbed one bank and five convenience stores, all in Lincoln. In three of those robberies, Brooks brandished a firearm at employees of the businesses. At the bank robbery, he also fired the weapon multiple times in the direction of bank employees. Remus shot one of the gas station clerks in their final robbery at a convenience store on December 30, 2016.
This case was investigated by the Lincoln Police Department and the Federal Bureau of Investigation.
Lawrence Man Charged with Fentanyl TraffickingRead the Press Release
BOSTON – A Lawrence man was charged Wednesday, April 10, 2019, in federal court in Boston in connection with drug trafficking activities involving fentanyl.
Robinson Guzman, 38, was indicted on three counts of distribution of, and possession with intent to distribute, fentanyl; one count of distribution of, and possession with intent to distribute, more than 40 grams of fentanyl; and one count of possession with intent to distribute more than 40 grams of fentanyl. Guzman was previously charged by criminal complaint and arrested on March 19, 2019. He has been in custody since.
According to court documents, between November 2018 and March 2019, prior to his arrest, Guzman engaged in 10 separate drug sales of fentanyl powder and pills, containing either Oxycodone or fentanyl, to an undercover law enforcement agent.
The charges of distribution of, and possession with intent to distribute, fentanyl each provide for a sentence of no greater than 20 years in prison, a minimum of three years of supervised release and a fine of up to $1 million; the charges involving more than 40 grams of fentanyl carry a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years of supervised release, and a fine of up to $5 million. 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 and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Valuable assistance was provided by the Methuen, Lawrence, and Melrose Police Departments. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
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.
Lawrence Keefe Takes the Oath of Office as United States Attorney for the Northern District of FloridaRead the Press Release
COLIN HACKLEY PHOTO TALLAHASSEE, FLA.-Lawrence Keefe, second from left, is joined by his wife Dr. Lynn Keefe and sons Robert, John, and Patrick, right, as he takes the Oath of Office as the United States Attorney for the Northern District of Florida from Mark Walker, left, Chief United States District Judge on April 12, 2019.TALLAHASSEE, FLORIDA – This afternoon, U.S. Attorney Lawrence Keefe took the oath of office in an official investiture ceremony, joined by staff from the U.S. Attorney’s Office; federal, state, and local law enforcement agency heads; Congress members; Judiciary members; Florida cabinet members; city and county government members; distinguished guests; and family.
The Honorable Mark E. Walker, Chief United States District Judge, presided over the ceremony. Three of U.S. Attorney Keefe’s longtime friends, mentors, and colleagues participated in the ceremony. U.S. Attorney Keefe met Phillip S. Dingle, who gave the invocation, and J. Rex Farrior III, who led the Pledge of Allegiance, in law school at the University of Florida. Benjamin H. Hill III, who hired U.S. Attorney Keefe after graduation at his Tampa-based law firm, gave the keynote address.
U.S. Attorney Keefe gave a special message to each group present at the investiture about his core beliefs of hard work, integrity, and treating everyone with respect, no matter their station in life. He quoted from Sir Winston Churchill: “To each there comes in their lifetime a special moment when they are figuratively tapped on the shoulder and offered the chance to do a very special thing, unique to them and fitted to their talents. What a tragedy if that moment finds them unprepared or unqualified for that which could have been their finest hour.” The full text of U.S. Attorney Keefe’s remarks as drafted are attached, as well as a photo and copy of the program.
As the 41st U.S. Attorney for the Northern District of Florida, U.S. Attorney Keefe is the top-ranking federal law enforcement official in the district, which includes Florida’s 23 panhandle counties, from Escambia in the west to Alachua in the east. The district has offices in Pensacola, Panama City, Tallahassee, and Gainesville. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, human trafficking, financial fraud, health care fraud, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States. For more information about U.S. Attorney Keefe’s appointment and experience, click here.
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 available 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.
Law Enforcement Dismantle Drug Ring Operating in AshevilleRead the Press Release
ASHEVILLE, N.C. – United States Attorney Andrew Murray announced today that law enforcement have dismantled a drug ring operating in Asheville, charging eight of its members with drug conspiracy and drug and firearm-related offenses. The 35-count criminal indictment was returned by the federal grand jury on April 2, 2019, and was unsealed today.
The two-year joint federal, state and local investigation aimed at reducing drug distribution and drug related criminal activity and increasing community safety in Buncombe County. The indictment alleges that the drug ring operated in Asheville and trafficked heroin, cocaine, crack cocaine, methamphetamine, prescription drugs and other narcotics. Over the course of the investigation, law enforcement seized drugs, 12 firearms and ammunition, and $153,674 in cash.
“The federal charges against the eight defendants are the result of a joint law enforcement investigation targeting an area of Asheville that has been plagued by drug trafficking and drug-related criminal activity,” said U.S. Attorney Murray. “The danger and violence that drugs and guns create in our local communities erode our citizens’ ability to live peaceful lives. I want to thank our law enforcement partners for working together to identify individuals who threaten the safety and stability of our neighborhood streets.”
“Today, we have removed dangerous criminals from the Buncombe County community. These poly-drug traffickers will no longer be able to deliver deadly doses of poison to this community. This investigation was a success because of the great working relationship that DEA has with its federal, state, local counterparts and the U.S. Attorney’s Office,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division, which oversees North Carolina.
"The Asheville Police Department is committed to bettering the lives of the residents of Asheville,” said Interim Chief Wade Wood, of the Asheville Police Department. “This joint operation addressed an area of our city that has seen an increase in violence and drug-related activity over the course of the past year. Federal and local partnerships are critical in addressing such criminal networks, and I would like to thank the United States Attorney’s Office and the DEA for their continued support and efforts.”
The eight defendants named in the indictment are each charged with conspiracy to distribute and to possess with intent to distribute heroin, cocaine, crack cocaine, marijuana, Oxycodone, Adderrall, and Xanax, and related possession and distribution charges. They are:
- Prophet Karim Hadialim Allah, 47, of Leicester, North Carolina.
- Rodney Dejuan Allison, 43, of Asheville.
- William Luther Downs, Jr., 26, of Asheville.
- Harry James Odum, 57, of Asheville.
- Derrick Maurice Perry, 25, of Asheville.
- Teresa Day Shuping, 47, of Hickory, North Carolina.
- Elliot Norris Smith, 25, of Atlanta, Georgia.
- Jeffrey Allen Wright, 41, of Leicester.
In addition to the drug conspiracy charges, Allison, Downs, Perry, Smith and Wright are also charged with firearms related offenses. (See chart below for federal charges and penalties for each defendant).
Five defendants are in custody. Federal arrest warrants have been issued against Perry, Smith and Shuping.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Asheville Police Department, the Buncombe County Anti-Crime Task Force, the Buncombe County Sheriff’s Office, the Black Mountain Police Department, and the Wilkes County Sheriff’s Office for leading the investigation. U.S. Attorney Murray also thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and the North Carolina State Bureau of Investigation for their assistance in this case.
Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, is leading the prosecution.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Lake Charles man pleads guilty to illegal firearm possession following police chaseRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a Lake Charles man pleaded guilty in federal court on Monday to illegally possessing a firearm after leading Lake Charles police officers on a vehicle pursuit that ended in a crash.
Dane Darbonne, 29, pleaded guilty before U.S. Magistrate Judge Kathleen Kay to being a felon in possession of a firearm. According to the guilty plea, Darbonne purchased a Savage Model 110 caliber, 30-06 rifle from another individual on August 10, 2018. The day after taking possession of the firearm, Darbonne led Lake Charles police in a vehicle pursuit. Darbonne crashed the car during the pursuit and fled the scene. Officers recovered the rifle from the vehicle Darbonne was driving. Darbonne is a felon who was previously convicted for possession of a firearm in a firearm free zone, assault by drive-by-shooting, attempted manslaughter, possession of a firearm by a convicted felon and possession of cocaine. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition.
Darbonne faces up to 10 years in prison, three years of supervised release and a $250,000 fine.
The ATF and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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.
Justice Department Honors Nashville Man with Special Courage AwardRead the Press Release
WASHINGTON – The Justice Department today presented James Shaw Jr. of Nashville, Tennessee, the Special Courage Award during the annual National Crime Victims’ Service Awards ceremony in Washington, D.C. This honor is awarded to victims or survivors who exhibit exceptional perseverance and determination in dealing with his or her own victimization, or who acted bravely to prevent victimization.
“Risking his own life, Mr. Shaw acted swiftly and bravely after a gunman killed four people early one morning at a diner, saving the lives of many others. He then followed up his courageous action by delivering comfort and aid to wounded and traumatized victims,” said Attorney General William P. Barr. “None of us knows how we would react in such a dangerous situation, but we can all be inspired by Mr. Shaw’s selflessness.”
On April 22, 2018, Shaw, an electrical technician, was eating at a restaurant when a gunman opened fire on the patrons. Despite being grazed by a bullet, a Nashville police spokesman said “Mr. Shaw saved, obviously, many lives in his heroic action.” Later, he visited wounded victims in the hospital and helped support them in their recovery.
“The trauma of those who experience a violent crime is deep and real, and their restoration to physical and emotional health can be long and difficult,” said Office of Justice Programs Principal Deputy Assistant Attorney General Matt M. Dummermuth. “But Mr. Shaw encourages us as individuals and as a nation to strive to meet the needs of those struggling in the aftermath of crime.”
The Department’s Office for Victims of Crime, a component of OJP, leads communities across the country in observing National Crime Victims’ Rights Week and hosts an annual award ceremony. President Reagan proclaimed the first Victims’ Rights Week in 1981, calling for greater sensitivity to the rights and needs of victims. This year’s observance takes place April 7-13, with the theme “Honoring Our Past. Creating Hope for the Future.”
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership, grants and resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
###
Jury Finds Local Businessman Guilty of Fraud in Bidding for D.C. Government ContractsRead the Press Release
WASHINGTON – Keith Forney, 60, of Clinton, Md., has been found guilty by a jury of fraud and other charges related to his fraudulently obtaining preferences for his company, Forney Enterprises, Inc. (FEI), in bidding for District of Columbia government contracts.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and District of Columbia Inspector General Daniel W. Lucas.
Forney was found guilty of three counts of fraud, two counts of perjury, and one count of corrupt election practices. The verdict was returned on April 11, 2019, following a trial in the Superior Court of the District of Columbia. The Honorable Michael O’Keefe scheduled sentencing for June 24, 2019. Forney faces a maximum sentence of three years in prison for the fraud counts, ten years for the perjury counts, and five years for corrupt election practices.
Forney was previously found guilty on April 1, 2019, in a bench trial before Judge O’Keefe, of 11 counts of making illegal campaign contributions. The maximum sentence for each of these counts is six months in prison.
According to the government’s evidence, FEI was a business located in the District of Columbia. The District government had a preference program for local businesses when bidding for D.C. government contracts. The Department of Small and Local Business Development (DSLBD) certified that local businesses were eligible for preferences in certain categories. One of the categories was as a resident-owned business (ROB). The ROB category was worth five preference points, meaning that a bid was evaluated as if it was 5% less than the actual bid amount. On average, FEI bid for 15-30 government contracts per year using the ROB preference points. All of the contracts were worth over $1 million.
In 2012, 2014, and 2016, Forney submitted applications to DSLBD listing an address in the District of Columbia as his residence in order to obtain the ROB preference points. Forney never lived at the address. He had purchased the property in 2005 when it was being leased to a tenant. Forney continued to rent the property out while using the address for the ROB designation. Forney also obtained a D.C. driver’s license and a D.C. voter registration with the address of the rental property. He then submitted these documents to DSLBD to make it appear that he lived there. Forney applied for his D.C. voter registration in July 2007. He certified on the application that he was not registered to vote in any other jurisdiction when in fact he was registered to vote in Maryland. Forney continued to vote in Maryland after registering to vote in D.C. and did not cancel his Maryland registration until 2015. Forney also obtained Maryland and D.C. driver’s licenses on the same day.
The evidence at trial on the campaign finance charges established that Forney made the maximum allowable donations as an individual and on behalf of FEI to three candidates running for the D.C. council. Forney then directed associates to make personal contributions to these same candidates. Forney used FEI funds to reimburse the associates for the contributions.
This case was investigated by the FBI’s Washington Field Office and the District of Columbia Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorneys Anthony Saler and Andrea Duvall. Assistance was provided by Assistant U.S. Attorney Daniel Lenerz, Financial Analyst: Bryan J. Snitselaar. Paralegal Specialists: C. Rosalind Pressley, Joshua Fein, and Amanda Rohde; former Paralegal Specialists Toni Anne Donato and Kristy Penny, and former Criminal Investigator Juan Juarez.
Jury Convicts Reno Felon of Unlawful Possession of A FirearmRead the Press Release
RENO, Nev. – A jury sitting in northern Nevada convicted a felon of a federal firearm violation, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Clifton James Jackson, 55, of Reno, was found guilty of felon in possession of a firearm. He has a prior conviction for felon in possession of a firearm in Nevada. United States District Judge Howard D. McKibben scheduled a sentencing hearing on July 10, 2019.
According to court documents and evidence introduced at trial, in December 2018, a deputy with the Washoe County Sheriff’s Office responded to a 911 call reporting a man holding a handgun while walking towards a business. Gunshots were also reported by the caller. As responding law enforcement officers located and pursued a truck driven by the suspect, the deputy observed an object being thrown from the truck. When additional units arrived on scene, Jackson and a juvenile were arrested. A subsequent search of the truck and the area where the object had been thrown revealed a 7.65mm semi-automatic pistol and a box of .32 caliber ammunition. A records check of the recovered firearm revealed that it had been stolen in Plumas County, California in May 2018.
The maximum penalty is 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Washoe County Sheriff’s Office. Assistant U.S. Attorneys Megan Rachow and Randy St. Clair are prosecuting the case.
To report a tip about a stolen firearm contact the ATF at 1-888-ATF-TIPS (1-888-283-3473).
This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
# # #
Justice Department Closes Review into the Death of Aaron BaileyRead the Press Release
Indianapolis – Josh J. Minkler, the United States Attorney, announced today that the independent federal review into the fatal shooting of Indianapolis resident Aaron Bailey on June 29, 2017, found insufficient evidence to support federal criminal civil rights charges against the Indianapolis Metropolitan Police Department officers involved in the shooting.
Federal authorities conducted a comprehensive and independent review of all evidence gathered during multiple investigations and proceedings relating to the shooting. These materials included, among other things, the Indianapolis Metropolitan Police Department homicide investigation, the investigation and report of the appointed state special prosecutor, the proceedings before the Indianapolis Civilian Police Merit Board, and the independent investigation of the Federal Bureau of Investigation.
Based on this review, career federal prosecutors determined that there is insufficient evidence to prove any violation of the applicable federal criminal civil rights statute, 18 U.S.C. § 242. Under this statute, the government would have to prove beyond a reasonable doubt that one or both of the officers involved in the shooting deprived Mr. Bailey of a constitutionally protected right, and that the officer did so willfully. To prove the constitutional violation, the government would have to show that the officer used force that was objectively unreasonable based on all of the surrounding circumstances. Moreover, the law requires that this determination allow for the fact that law enforcement officers are often forced to make split-second judgments in circumstances that are tense, uncertain, and rapidly evolving, and also requires that an officer’s force be judged without the benefit and added perspective of hindsight.
To prove that an officer-involved shooting violated 18 U.S.C. § 242, the government also would have to prove beyond a reasonable doubt that the officer acted willfully, meaning that the officer knew that his actions were unlawful and he acted with the specific intent to do something the law forbids. Even negligence, mistake, and bad judgment are insufficient to establish a criminal violation.
Based on a determination that the evidence in this case is insufficient to meet the high legal standard set by the law, the United States Attorney’s Office, in consultation with the Civil Rights Division of the Department of Justice, has closed this matter without prosecution.
The United States Attorney’s Office for the Southern District of Indiana, the Civil Rights Division, and the Federal Bureau of Investigation are committed to investigating allegations of excessive force by law enforcement officers, and will continue to devote the resources required to ensure that all serious allegations of civil rights violations are thoroughly examined. The Department will aggressively prosecute criminal civil rights violations whenever there is sufficient evidence to do so and justice requires.
###
Inmates at USP Big Sandy Convicted of Assault with a Dangerous WeaponRead the Press Release
LONDON, Ky. – Eric “Big E” Flores, 38, of San Angelo, Texas, and Salomon Martinez, 44, of Eagle Pass, Texas, were convicted by a federal jury yesterday of Assault of a Federal Inmate with a Dangerous Weapon.
The proof at trial established that the Defendants were members of the MEXIKANEMI, Texas Mexican Mafia, and participated in the assault of an Arizona Mexican Mafia member. On June 17, 2018, within United States Penitentiary (USP) Big Sandy, in Inez, Kentucky, the Defendants repeatedly stabbed the victim, in his back, leg, and arm, with shanks. In addition to multiple stab wounds, the victim also sustained a fractured left scapula.
Two co-defendants, Rodney “Joker” Galindo, 38, of Odessa, Texas, and Michael “Taz” Morin, 52, of Austin, Texas, fellow MEXIKANEMI members, pled guilty in March to the attempted murder of another Arizona Mexican Mafia member. The second victim suffered a hematoma in the right frontal lobe, depressed skull fracture, midline shift, and extra-axial hemorrhages. The two assaults happened simultaneously, within a cell block, on June 17, 2018.
Galindo and Morin face up to twenty-five years in prison. Flores and Martinez face up to ten years in prison.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky and Hector Joyner, Warden of USP Big Sandy, jointly made the announcement. The investigation was conducted by the USP Big Sandy Special Investigative Services Office. The United States was represented by Assistant United States Attorney Jenna E. Reed.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on April 11 was:
JOSEPH MATTHEW BALLANTYNE, 60, on charges of failure to register as a sex offender. If convicted of the most serious charge, Ballantyne faces a maximum 10 years in prison, a $250,000 fine and five years to life of supervised release. Ballantyne was detained. The case was investigated by the U.S. Marshals Service. Pacer case reference. 19-42.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on April 11 was:
JAMES SNELL, 42, of Fort Belknap, on a 14-count indictment charging him with abusive sexual contact, sexual exploitation of a child and aggravated sexual abuse. If convicted of the most serious crime, Snell faces a minimum mandatory 30 years to life in prison, a $250,000 fine and from five years to life of supervised release. Snell was detained. The case was investigated by the FBI. Pacer case reference. 19-20.
Appearing in Great Falls before U.S. Magistrate Judge Jeremiah C. Lynch and pleading not guilty on April 9 was:
GREGORY GEORGE DENNY, 46, of Great Falls, on charges of possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm. If convicted of the most serious crime, Denny faces a minimum mandatory five years to 40 years in prison, a $5 million fine and five years of supervised release. Denny was detained. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations. Pacer case reference. 18-24.
KENNETH SKUNKCAP, 62, of Browning, on charges of assault resulting in substantial injury to dating partner. If convicted of the most serious crime, Skunkcap faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Skunkcap was detained. The case was investigated by the FBI. Pacer case reference. 19-22.
MARLIN LAYNE BULL CALF, 21, of Browning, on charges of strangulation. If convicted of the most serious crime, Bull Calf faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Bull Calf was detained. The case was investigated by the Bureau of Indian Affairs. Pacer case reference. 19-21.
Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch and pleading not guilty on April 8 was:
JENNIFER LYNN FOLEY, 32, of Missoula, on charges of conspiracy to possess methamphetamine with intent to distribute, possession with intent to distribute meth and possession of a firearm during drug trafficking crime. Foley was detained. If convicted of the most serious crime, Foley faces a minimum mandatory 10 years to life in prison, a $10 million fine and a minimum five years of supervised release. Pacer case reference. 19-20.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Illegal Alien Sentenced for Sexually Exploiting Women in Northern VirginiaRead the Press Release
ALEXANDRIA, Va. – An El Salvadoran man who is in the United States illegally was sentenced today to over two years in prison for running an illegal commercial sex business that catered to the Hispanic community in Northern Virginia.
“Bonilla-Hernandez profited from the sexual exploitation of women who found themselves in difficult and vulnerable places,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The tears, pain, and mental anguish expressed by the victims in this case is heartbreaking. Additionally, this case is yet another example of an individual who is here in the United States illegally and committing serious crimes. Human trafficking and the sexual exploitation of individuals remains a priority of this office and we will continue to investigate and prosecute these serious crimes that inflict mental, emotional, and physical harm on the victims involved.”
According to court documents, over the past three years, Luis Bonilla-Hernandez, 33, and co-conspirator, Eliazar Duran Mota, 23, of Herndon, ran the illegal business out of their homes in Sterling and Herndon. The women who were exploited were Hispanic, spoke little-to-no English, and found themselves struggling financially in the United States. Bonilla-Hernandez and Duran Mota took advantage of the difficult situations the victims had found themselves in and sought to sexually exploit them for financial profit.
Each week, Bonilla-Hernandez and Duran Mota would obtain a woman to work for a week at a time. During interviews with the women they described their bodies being sore and exhausted from the 10 to 20 commercial sex encounters they had per day. They described enduring verbal abuse and threats to their physical safety from the customers. They discussed being required to turn all of their money over to Bonilla-Hernandez and Duran Mota, and continuing to work out of fear that they would not get their portion of the money at the end of the week. After a woman worked for a week, Bonilla-Hernandez and Duran Mota would switch out their “inventory” by obtaining a new woman from Union Station to work throughout Northern Virginia.
When law enforcement executed a search warrant on Bonilla Hernandez’s house, they recovered evidence of the scheme and over $14,000 in cash.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, Michael L. Chapman, Loudoun County Sheriff, and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Maureen C. Cain prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-26.
Hartford Man Charged with Committing 7 Robberies and a Carjacking Last SummerRead 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 grand jury sitting in Hartford has returned a superseding indictment charging ARNO SMITH, 56, of Hartford, with committing seven robberies and a carjacking last summer.
On November 6, 2018, the grand jury returned a one-count indictment alleging that, on July 26, 2018, Smith used threats of violence to steal a 2006 Honda Accord from a victim in Hartford.
An eight-count superseding indictment, which was returned on April 3, adds seven counts of interference with commerce by robbery and alleges that Smith robbed the Price Chopper supermarket located at 121 Farmington Avenue in Bristol on July 27; the Price Chopper supermarket located at 410 Queen Street in Southington on September 4; the U-Haul Moving and Storage located at 755 Capitol Avenue in Hartford on September 5; the Home Depot located at 55 Granby Street in Bloomfield on September 15; the Lowe’s Home Improvement located at 31 Buckland Hills Drive in South Windsor on September 16; the Days Inn located at 185 Ella Grasso Turnpike in Windsor Locks on September 18, and the U-Haul Moving and Storage located at 3197 Main Street in Hartford on September 19.
Smith has been detained since September 20, 2018, when he was arrested on related state charges.
The charge of carjacking carries a maximum term of imprisonment of 15 years, and the charge of interference with commerce by robbery carries a maximum term of imprisonment of 20 years on each count.
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’s Northern Connecticut Violent Crimes Task Force and the Hartford, Bristol, Southington, Bloomfield, South Windsor, Windsor Locks, Farmington and West Hartford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Greenwood Man Sentenced to 10 Years in Federal Prison for Murder for Hire with Hate Crime EnhancementRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Brandon Cory Lecroy, age 26, of Greenwood, South Carolina, was sentenced to ten years in the Federal Bureau of Prisons after pleading guilty to murder for hire. United States District Judge Bruce Howe Hendricks of Charleston sentenced Lecroy to the statutory maximum for the offense, followed by three years of court-ordered supervision. There is no parole in the federal system.
Evidence presented to the court established that the Federal Bureau of Investigation received information that Lecroy had contacted a white supremacist organization to seek assistance with the murder of his African American neighbor. The FBI was able to direct Lecroy to an undercover agent, who posed as a hitman to determine if Lecroy was serious about causing harm to his neighbor. On March 20, 2018, via a recorded telephone conversation, Lecroy made an arrangement with the undercover agent to pay for the murder of his neighbor. During the phone call, Lecroy told the agent “$500 and he’s a ghost.” In other words, Lecroy offered to pay $500 for the death of his neighbor. In the same conversation, Lecroy also made a request to put a “flaming cross” in the front yard and have the neighbor hung from a tree. Lecroy also made statements about taking over the neighbor’s property once the murder was accomplished.
On April 9, 2018, Lecroy met with the undercover agent in Greenwood. During this meeting, Lecroy pointed out the neighbor’s residence and discussed future targets he wanted killed or maimed. Lecroy also provided the agent with a $100 cash down payment. After the exchange of funds, law enforcement officers descended on the scene and arrested Lecroy without incident.
The case was investigated by agents with the Federal Bureau of Investigation. Assistant United States Attorney Bill Watkins of the Greenville office prosecuted the case.
#####
Georgia Man Charged with Failure to Register as a Sex OffenderRead the Press Release
NEW ORLEANS - U.S. Attorney Peter Strasser announced that JAMES A. MOORE, age 31, of Atlanta, Georgia was charged yesterday by grand jury indictment with one count of failure to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).
If convicted, MOORE faces a maximum term of 10 years in prison and a $250,000.00 fine. He also would have to be sentenced to a term of supervised release of between 5 years and life.
U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Marshals Service, the New Orleans Police Department, the Orleans Parish Sheriff’s Office, the Louisiana State Police, and the Fulton County Sheriff’s Office of Atlanta, Georgia in this matter. He also extended his thanks to the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
General Electric Agrees to Pay $1.5 Billion Penalty for Alleged Misrepresentations Concerning Subprime Loans Included in Residential Mortgage-Backed SecuritiesRead the Press Release
The Department of Justice today announced that General Electric (GE) will pay a civil penalty of $1.5 billion under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) to resolve claims involving subprime residential mortgage loans originated by WMC Mortgage (WMC), a GE subsidiary. WMC, GE, and their affiliates allegedly misrepresented the quality of WMC’s loans and the extent of WMC’s internal quality and fraud controls in connection with the marketing and sale of residential mortgage-backed securities (RMBS). FIRREA authorizes the federal government to seek civil penalties for violations of various predicate criminal offenses, including wire and mail fraud where the violation affects a federally insured financial institution.
“The financial system counts on originators, which are in the best position to know the true condition of their mortgage loans, to make accurate and complete representations about their products. The failure to disclose material deficiencies in those loans contributed to the financial crisis,” said Assistant Attorney General Jody Hunt. “As today’s resolution demonstrates, the Department of Justice will continue to employ FIRREA as a powerful tool for protecting our financial markets against fraud.”
General Electric Capital Corporation (GECC), then the financial services unit of GE, acquired WMC, a subprime residential mortgage loan originator, in 2004. WMC originated more than $65 billion dollars in mortgage loans between 2005 and 2007. WMC sold the vast majority of its loans to investment banks, which, in turn, issued and sold RMBS backed by WMC loans to investors. The United States alleged that a majority of the mortgage loans WMC originated and sold for inclusion in RMBS in 2005-2007 did not comply with WMC’s representations about the loans, and that certain of WMC’s representations were reviewed by, approved by, or made with the knowledge of personnel from GE or GECC. Investors, including federally insured financial institutions, suffered billions of dollars in losses as a result of WMC’s fraudulent origination and sale of loans for inclusion in RMBS.
In particular, the United States alleged that in 2005-2007, WMC attempted to increase its profits and meet profit goals by increasing originations. WMC loan analysts responsible for underwriting mortgage loans were encouraged to approve loans in order to meet volume targets, even where the loan applications did not meet the criteria outlined in WMC’s published underwriting guidelines, and received additional compensation based on the number of mortgages they approved. At the same time, there were significant deficiencies with respect to WMC’s quality control, which was viewed by some as an impediment to volume. In 2005, a WMC quality control manager described his department as a “toothless tiger” with inadequate resources and no authority to prevent the approval or sale of loans his department had determined were fraudulent or otherwise defective. By late third quarter 2006, managers responsible for quality control and risk management at WMC and GECC had expressed concerns that WMC’s quality and fraud controls were so lax that WMC received more mortgage applications containing fraud or other defects than its competitors. As a member of GE’s Corporate Audit Staff (CAS) involved in audits of WMC observed in April 2007, WMC “jacked up volume without controls.”
The United States alleged that the investment banks that purchased WMC’s loans declined to buy certain mortgage loans that WMC attempted to sell due to defects in the loan file or suspected fraud. When it declined, or “kicked out” a loan, the potential purchaser typically notified WMC of its reasons for rejecting the file, including the defects identified. WMC’s general practice was to re-offer certain kicked loans to a second potential purchaser for inclusion in RMBS without disclosing that the mortgage had previously been rejected or the reasons why the first potential purchaser concluded the mortgage had defects.
The United States alleged that by late 2005 and early 2006, investment banks were kicking out more of WMC’s loans than ever, and investors in RMBS backed by WMC loans raised concerns about the quality of loans originated by WMC because WMC borrowers were failing to repay their loans at unexpectedly high rates. WMC also began receiving increased numbers of requests from investment banks to buy back, or repurchase, loans. In March 2006, WMC reviewed a representative sample of the 1,276 loans it had repurchased in 2005, and concluded that 78 percent of the loan files reviewed contained at least one piece of false information. The results of this review were shared with WMC’s senior executive team and discussed on multiple occasions with personnel from GECC.
The United States alleged that in fall 2006, GECC took control over the strategic direction of WMC. Even in the face of increasing repurchase demands, kick-outs, and concerns about WMC’s underwriting quality, WMC continued selling its loans and making false representations about their qualities and attributes. GECC became closely involved in WMC’s whole loan sales and provided WMC with input and direction on how to sell off WMC’s remaining loans. Beginning in 2007, GECC also assumed control over WMC’s ability to grant repurchase requests.
The investigation of WMC, GE, and GECC and this settlement were handled by the Civil Division’s Commercial Litigation Branch, with assistance from the San Francisco Field Office of the Federal Bureau of Investigation. The claims resolved by this settlement are allegations only, and there has been no admission of liability.
Gallup Woman Sentenced to 78 Months for Assaulting VictimRead the Press Release
PHOENIX– On April 8, 2019, Seraphina Charley, 30, of Church Rock, NM, a member of the Navajo Nation, was sentenced by District Judge Steven P. Logan to 78 months’ imprisonment. After a four-day trial, Charley was found guilty by a jury of assault with a dangerous weapon, assault resulting in serious bodily injury and making false statements to a government agency.
In March 2018, Charley intentionally struck her then boyfriend, also a member of the Navajo Nation, in the back of the head with a piece of metal rebar. During the investigation, Charley lied about her identity and created a false story that unknown males assaulted the victim. Due to the assault, the victim suffered permanent brain damage affecting his ability to walk and remember.
The Navajo Nation Criminal Investigations and the Federal Bureau of Investigation conducted the investigation. The prosecution was handled by Kiyoko Patterson and Dimitra Sampson, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-18-8135-PCT-SPL
RELEASE NUMBER: 2019-050_Charley
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Fraudster and Identity Thief who Used the Personal and Account Information of AT&T Customers to Purchase Apple iPhones Sentenced to Four Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis today sentenced Alonia Anderson Perkins, age 42, of Tampa, Florida, to four years in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud and for aggravated identity theft, in connection with a scheme to fraudulently obtain and charge the costs of upgraded Apple iPhones against true AT&T customers. Judge Xinis also ordered Perkins to pay restitution of $6,500.
Co-defendant Toni Ann Bobet, age 30, of New York, New York, pleaded guilty to her role in the scheme on April 11, 2019, just a few days before she was scheduled to go to trial.
The sentence and guilty plea were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Matthew S. Miller of the United States Secret Service - Washington Field Office; and Acting Chief Russell E. Hamill, III of the Montgomery County Police Department.
According to their plea agreements, Perkins, Bobet, and co-defendant Celeste Nyleen Carmona, age 23, of New York, New York, conspired to obtain, charge, and finance the costs of upgraded Apple iPhones against true AT&T customers’ accounts. The defendants admitted that they used stolen account information, telephone upgrade eligibility, and personal identifying information of actual AT&T Mobility customers to obtain the iPhones, which Bobet then provided to her co-conspirators in New York City.
Specifically, in July 2015 and April 2016, respectively, Bobet recruited Carmona and Perkins into the scheme. In May 2016, Bobet drove Perkins and Carmona from New York City to Apple Stores located in Maryland and elsewhere to obtain Apple iPhones for resale. For example, on May 16, 2016, Bobet provided Perkins and Carmona with fraudulent identification cards that contained the stolen personal information of victim AT&T customers, but bore the photographs of Perkins and Carmona, as well as counterfeit credit and debit cards in the victim customers’ names. Bobet obtained the stolen identity information from her co-conspirators in New York City. Bobet drove Perkins and Carmona to the Apple Store located at The Mall in Columbia, Maryland. Perkins and Carmona entered the Apple stores while Bobet remained in the car. Perkins and Carmona each posing as a victim customer, purchased an Apple iPhone on the victim customers’ accounts. Bobet then drove Perkins and Carmona to Westfield Montgomery Mall in Bethesda. Carmona, posing as a victim customer purchased two more iPhones on the account of that customer. Perkins attempted to purchase an iPhone on the account of a fourth victim customer, but that customer’s account reflected a past due balance of $100, and Perkins was unable to upgrade any lines on that victim’s account until the balance was paid. Perkins abandoned the transaction and left the store, while Carmona completed her transaction.
Police responded to the Westfield Mall and located Bobet’s vehicle in the parking lot. Bobet attempted to leave, but law enforcement stopped the vehicle. Bobet, Perkins, and Carmona were taken into custody and transported to police headquarters. A search of Bobet recovered two cellular phones which contained AT&T account information and personal identifying information of at least 20 individuals. Bobet’s vehicle was seized and a search warrant for the vehicle was obtained. Law enforcement recovered a laptop, a tablet, counterfeit identification cards, credit and debit cards, and a black duffle bag containing the four fraudulently obtained Apple iPhones.
AT&T records also showed that during the timeframe of the conspiracy, the name of Alonia Perkins was fraudulently added to four AT&T accounts in Florida and that three of these victims’ accounts had their billing addresses changed to Perkins’ address in Florida. The records also showed that Perkins later financed at least six Apple iPhones against the four victim customers’ accounts. AT&T records further showed that the name Nyleen C. Carmona, or derivatives of that name, were added to 24 victims’ accounts, and Carmona later financed at least 46 Apple iPhones against the victims’ accounts.
Bobet and Carmona admitted that during the time of their participation in the conspiracy at least $95,001 and $40,001 in losses, respectively, were foreseeable to them.
Bobet and Carmona face a maximum sentence of 20 years in prison for the wire fraud conspiracy, and a mandatory sentence of two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. Judge Xinis has scheduled sentencing for Bobet on July 11, 2019 at 1:00 p.m. and for Carmona on December 10, 2019 at 11:30 a.m.
United States Attorney Robert K. Hur praised the U.S. Secret Service and the Montgomery County Police Department’s Economic Crimes Task Force and Electronic Crimes Unit for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jennifer R. Sykes, who prosecuted the case.
# # #
Fort Thompson Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on April 1, 2019, by U.S. District Judge Roberto A. Lange.
Rain Blaine, age 19, was sentenced to 33 months in federal prison, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Blaine was indicted by a federal grand jury on August 14, 2018. He pled guilty on January 8, 2019.
The conviction stemmed from an incident on June 24, 2018, when Blaine became upset with an individual during a conversation and stabbed the victim in the abdomen. Blaine then dropped the knife and began to physically assault the victim with his hands and feet. The victim had to be airlifted to Sioux Falls, where he was treated for his injuries.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Blaine was immediately turned over to the custody of the U.S. Marshals Service.
Fort Thompson Man Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Benjamin Big Eagle, a/k/a Benji Big Eagle, age 32, was indicted on November 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 4, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $10,000,000 fine, up to a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning no later than on or about January 1, 2017, and continuing to on or about November 14, 2018, Big Eagle knowingly and intentionally conspired with others to distribute and possess with intent to distribute 500 grams or more of methamphetamine.
The charge is merely an accusation and Big Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Big Eagle was released on bond pending trial. A trial date has been set for May 28, 2019.
Former Venezuelan Official Hugo Armando Carvajal Barrios Arrested in Spain in Connection with Drug-Trafficking ChargeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Christopher T. Tersigni, the Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), today announced that former Venezuelan official Hugo Armando Carvajal Barrios, a/k/a “El Pollo,” was arrested today in Madrid, Spain, based on an Interpol Notice related to the charge filed in Indictment 11 Cr. 205 in the Southern District of New York. The Indictment charges Carvajal with participating in a conspiracy to import cocaine into the United States, including a 5.6-ton shipment of cocaine transported from Venezuela to Mexico in April 2006.[1] The U.S. Attorney’s Office for the Southern District of New York plans to seek the extradition of Carvajal Barrios from Spain.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Hugo Armando Carvajal Barrios, a former high-ranking official of Venezuelan military intelligence, allegedly conspired with others to traffic more than five tons of cocaine into the United States since at least 2006. Barrios’s arrest exemplifies this Office’s resolve to bring those who contribute to the illicit global drug trade to justice. No matter the rank or level of influence of an individual, we will continue to pursue and prosecute those who bring deadly drugs into this country in a U.S. court of law.”
Special Agent in Charge Christopher T. Tersigni said: “Today’s arrest of Hugo Armando Carvajal Barrios is yet another example of DEA’s commitment to stemming the flow of dangerous illicit drugs into our country. Despite his status as a former government official in Venezuela, Carvajal Barrios is not above the law. The DEA is grateful to our international partners for their efforts in helping to bring this drug-trafficker to justice.
* * *
Carvajal Barrios, 56, a Venezuelan national residing in Venezuela, among other places, is charged with conspiring to import cocaine into the United States. If convicted, Carvajal Barrios faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The mandatory minimum and maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Berman praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit and Miami Field Division, Homeland Security Investigations, the U.S. Treasury Department Office of Foreign Assets Control, and the U.S. Department of Justice’s Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, Amanda L. Houle, and Matthew J. Laroche, with assistance from Adam Fels of the U.S. Attorney’s Office for the Southern District of Florida.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Union Executive Officer Charged with EmbezzlementRead the Press Release
HONOLULU – Charles Kimo Brown, 60, a resident of Mililani, Hawaii, was charged yesterday in a federal indictment with two counts of embezzling from a union and two counts of making false entries in the books and records of a union.
The indictment alleges that, from in or around December 2009 through April 2014, Brown was an executive officer of the Hawaii Longshore Division (the "Longshore Division"), which is a labor organization headquartered in Honolulu, Hawaii. The Longshore Division is an autonomous division of the International Longshore and Warehouse Union Local 142. The Longshore Division represents approximately 1,000 stevedores throughout the State of Hawaii. As the Secretary-Treasurer of the Longshore Division, Brown was responsible for the union’s financial matters, among other duties. Compensation for his work came directly from Longshore Division funds in lieu of wages that he would have received from his regular employer. These payments were known as lost time wages. Brown consistently inflated his lost time hours on the weekly vouchers that he signed and submitted for payment from the Longshore Division.
Each embezzlement charge in the indictment carries a maximum term of five years imprisonment, and each false entry charge carries a maximum term of one year imprisonment. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Department of Labor, Internal Revenue Service – Criminal Investigation, and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S Attorney Rebecca A. Perlmutter for the District of Hawaii.
###
Former State Senator, Businessman Sentenced for Bank Fraud, Tax CrimesRead the Press Release
PROVIDENCE, RI – Former Rhode Island state senator and businessman James E. Doyle, II, 47, of Pawtucket, was sentenced today to 24 months in federal prison for engaging in a $74 million dollar check-kiting scheme in which he wrote tens of thousands of worthless checks, and failed to report more than $1 million dollars in income and pay taxes to the IRS, announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell, and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
Doyle pleaded guilty on September 28, 2018, to thirty-one counts of bank fraud and one count each of filing a false tax return and failing to file a tax return. At the time of his guilty plea Doyle admitted that as owner of Doyle Respiratory, LLC and Doyle Sleep Solutions, LLC, he engaged in criminal conduct during which $74 million dollars in worthless bank transactions were executed in check-kiting schemes through bank accounts he controlled at three banks. Doyle admitted that he executed the schemes through the use of checks, cash withdrawals, ATM electronic transfers and ACH transfer payments.
Doyle also admitted that for tax years 2013 thru 2016 he and his wife failed to report to the IRS more than $1 million dollars in income and failed to pay $305,426 in taxes due the IRS.
At sentencing, U.S. District Court Chief Judge William E. Smith sentenced Doyle to 3 years supervised release upon completion of his term of incarceration and ordered Doyle to pay restitution totaling $426,707.25 to Santander Bank and Alliance Blackstone Valley Federal Credit Union.
United States Attorney Aaron L. Weisman commented, “As so well articulated by Chief Judge Smith, an incarcerative sentence of 24 months is most appropriate considering the damage Mr. Doyle’s actions, in defrauding three banks of almost half a million dollars, has done to erode the people’s trust in their public officials.”
At the time of his guilty plea, Doyle admitted to the Court that he accomplished the check-kiting schemes by writing checks from accounts he knew were not backed by sufficient funds and depositing those checks into different accounts to cover daily overdrafts. Simultaneously, he wrote checks out of the second bank account and deposited those checks back into the first account. The purpose and effect of writing and depositing these worthless checks was to manipulate the numerical balances in the checking accounts, and thereby create the false and fraudulent appearance that the accounts had sufficient available funds in the accounts and to deceive and trick the banks into honoring the checks drawn against the checking accounts with insufficient funds.
Doyle executed the scheme on a daily basis, at times undertaking in excess of 50 transactions per day, included the utilization of ATMs in order to lengthen the time it took for checks to be presented for clearing. The investigation revealed that over the life of the scheme the defendant wrote tens of thousands of worthless checks.
The case was prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.
###
Flathead County man sentenced for illegal possession of machine gunRead the Press Release
MISSOULA—Flathead County resident Bruce Boone Wann was sentenced to four years in prison and three years of supervised release today after he admitted to illegally possessing a machine gun and other weapons crimes, U.S. Attorney Kurt Alme said.
Wann, 62, of Kila, pleaded guilty in December to illegally possessing a machine gun, an unregistered silencer, a short barreled rifle and a destructive device, specifically, a grenade.
Chief U.S. District Judge Dana L. Christensen presided.
Prosecution evidence showed that during an investigation that began in June, law enforcement learned that Wann had kept buried or hidden firearms, ammunition, a grenade, dynamite, and other items on various properties in the Marion area. Wann claimed he had stolen some of the items from a government bunker in California many years earlier.
Wann later broke into a Flathead County residence where he had previously arranged for a number of his other firearms to be stored. Wann then took not only his firearms, but also stole other firearms that did not belong to him. Investigators also learned Wann had made various threats of violence against people in Flathead County.
Assistant U.S. Attorney Tara Elliott and Taryn Meeks, a trial attorney with the National Security Division of the U.S. Department of Justice, prosecuted the case. The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Secret Service and Flathead County Sheriff’s Office.
XXX
Five Defendants Charged in White Plains Federal Court with Narcotics Trafficking in Dutchess CountyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an indictment yesterday charging five defendants with allegedly engaging in the distribution of cocaine and cocaine base throughout the Southern District of New York. All five defendants were taken into federal custody on April 10 and April 11, 2019. The defendants were presented in White Plains federal court yesterday before United States Magistrate Paul E. Davison. This case is assigned to U.S. District Judge Kenneth M. Karas.
U.S. Attorney Geoffrey S. Berman said: “Our Office is committed to targeting, arresting, and prosecuting criminals that peddle addictive and dangerous drugs to our community. Thankfully, our law enforcement partners are just as dedicated to this important cause.”
FBI Assistant Director William F. Sweeney Jr. said: “The insidious spread of potentially deadly, illegal drugs harms the small towns outside of the city in the same way it harms the big city. No one is immune to the crime and violence that accompanies the drug trade. The FBI Hudson Valley Safe Streets Task Force would like to thank all the dedicated law enforcement agencies who took part in this and other investigations for their work in making our communities safer.”
As alleged in the Indictment unsealed today in White Plains federal court[1]:
From at least in or about 2016 up to and including in or about October 2018, in the Southern District of New York and elsewhere, RONALD MILLER, a/k/a “Solo,” JASON PARADIES, FRANK NESBITT, a/k/a “Nitty” COREY WEBB, and KIYON WEBB, conspired to distribute five kilograms and more of cocaine and 280 grams of cocaine base.
* * *
The defendants RONALD MILLER, a/k/a “Solo,” JASON PARADIES, FRANK NESBITT, a/k/a “Nitty” COREY WEBB, and KIYON WEBB, face a maximum term of life in prison, and a mandatory term of 10 years in prison.
A chart containing the names of the defendants who were arrested and charged yesterday, and the charges and maximum penalties they face, is attached.
The statutory maximum sentences are prescribed by Congress and are provided here for information purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Berman praised the outstanding investigative work of the FBI Hudson Valley Safe Streets Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New York State Police, the Dutchess County Sheriff’s Office, the City of Poughkeepsie Police Department, and the City of Kingston Police Department.
These case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Samuel L. Raymond and Courtney Heavey are in charge of the prosecutions.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Feds Charge Two in Connection to Hopkinsville CarjackingRead the Press Release
PADUCAH, Ky. – Two Clarksville, Tennessee men have been charged by a federal Grand Jury this week in a five count indictment tied to a February 18, 2019, carjacking, announced United States Attorney Russell M. Coleman.
“Violent crimes such as this armed carjacking and shooting of a peace officer, which is being dealt with in state court, will not be tolerated in our Commonwealth,” said U.S. Attorney Russell Coleman. “My thanks to the fine men and women of Kentucky law enforcement who risk their lives daily to protect our families.”
According to the five count indictment, returned on Tuesday, April 9, 2019, Keith A. Kuzyk and Anthony J. Johnson have both been charged with carjacking a 2011 Chevrolet Tahoe on February 18, 2019 in Christian County, Kentucky.
The Grand Jury also charged Kuzyk with the use, carry and discharge of a Bersa, model Thunder 380 Plus, .380 AUTO semiautomatic pistol, during the carjacking. Johnson is also charged with the use, carry and brandish of a Spike’s Tactical, model ST15, multi (5.56 millimeter/.223) semiautomatic rifle, during and in relation to a crime of violence.
Kuzyk faces two additional charges; both for being a felon in possession of a firearm. The Clarksville, TN, man, was previously convicted of Aggravated Assault and Evading Arrest, Theft over $1,000, and First Degree Possession of a Controlled Substance (methamphetamine); all felonies.
The charge of carjacking carries a term of imprisonment of no more than 15 years; the use, carry and discharge of a firearm in relation to a crime of violence carries a term of imprisonment of no less than 10 years and no more than life; the use carry and brandish of a firearm in relation to a crime of violence carries a term of imprisonment of no less than 7 years and no more than life; being a felon in possession of a firearm carries a term of imprisonment of no more than 10 years unless there are three qualifying convictions, in that case the penalty is a mandatory minimum 15 years and no more than life in prison.
This case is being prosecuted by Assistant United States Attorney Seth Hancock, and is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Federal Bureau of Investigation (FBI); Kentucky State Police; Hopkinsville Police Department; Christian County Sheriff’s Office; Hopkinsville/Christian County Violent Crime Task Force; Clarksville Police Department; and Montgomery County Sheriff’s Office.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Federal collaboration produced real time results, 360 month sentence for production, transportation & possession of child pornRead the Press Release
LOUISVILLE, Ky. – United States District Judge Rebecca Grady Jennings has sentenced Andrew Paul Schmidt to 360 months, followed by lifetime of supervised release, after he pleaded guilty in October 2018 to five counts of production of child pornography by a parent, 10 counts of transportation of child pornography, and one count of possession of child pornography, announced United States Attorney Russell M. Coleman.
"This just punishment for human nature at its worst, and it’s a result of law enforcement at its best,” said U.S. Attorney Russell Coleman. “Potential jurisdictional and bureaucratic obstacles all evaporated when an imminent risk to a child appeared. I’m grateful for the professionalism and dedication to duty of FBI Special Agents Mark Coleman and Stephen Keary and prosecutors Josh Judd and Greta Ellis in this successful effort to protect our kids.”
“We have no greater duty than to protect the most vulnerable among us – our children,” said FBI Louisville Special Agent in Charge James Robert Brown, Jr. “Those who wish to harm our children and think they are acting anonymously on the Internet are simply wrong. I can assure you, the FBI and our law enforcement partners will relentlessly pursue those who produce, distribute, and possess child pornography, and they will be held accountable.
The investigation, arrest, and prosecution of Schmidt is demonstrative of the close working relationship between the Federal Bureau of Investigation (FBI), the U.S. Army Criminal Investigation Division (CID), and the United States Attorney’s Office (USAO).
According to the evidence before the Court, on December 4, 2017, Schmidt utilized KiK messenger to communicate with an individual online, which unbeknownst to Schmidt, was an undercover employee of Federal Bureau of Investigation (FBI). During the course of the online conversation, Schmidt sent the undercover employee pornographic images of a family member, and discussed the sexual activity he had and wished to perpetrate on her.
An examination of Schmidt’s cell phone revealed pornographic images of an 11-month-old baby, produced by Schmidt. Images of Schmidt’s daughter were also found to have been sent by him to another KiK user. Several other pornographic images not produced by Schmidt were also found on his phone.
A federal grand jury indicted Schmidt on six counts on December 20, 2017, and returned a superseding indictment with additional charges on March 21, 2018. Schmidt pleaded guilty to all charges on October 4, 2018.
Assistant United States Attorney Joshua Judd and United States Army Captain Greta M. Ellis, Special Assistant United States Attorney, prosecuted the case. The FBI conducted the investigation, with assistance from the U.S. Army CID.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
Federal Investigation into Lincoln Hills School ClosedRead the Press Release
MADISON, WIS. - The U.S. Attorney’s Office for the Western District of Wisconsin and the Civil Rights Division of the U.S. Department of Justice announced today that the federal criminal investigation of alleged civil rights violations at Lincoln Hills School (LHS) has concluded, after finding insufficient evidence to prove federal criminal civil rights charges against LHS staff members.
The U.S. Attorney’s Office and the Civil Rights Division, together with the Federal Bureau of Investigation, conducted a comprehensive investigation into allegations that LHS staff members used unreasonable force against incarcerated youths on multiple occasions. As part of this investigation, a team of experienced civil rights prosecutors and federal agents conducted interviews of civilians and law enforcement witnesses, and reviewed materials and evidence generated during the course of the prior State investigations, including video footage, physical evidence, medical reports, and youth, employee, and law enforcement statements. Federal authorities also reviewed the Wisconsin Department of Corrections and Lincoln Hills School policies and procedures in place at the time, and Lincoln Hills School staff training and employment records.
To prove a violation of federal criminal civil rights laws, prosecutors must be able to prove that the involved staff members willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden under federal law. Federal prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the staff member acted with the deliberate and specific intent to do something the law forbids. In this instance, there was insufficient evidence to establish beyond a reasonable doubt a violation of the federal criminal civil rights statutes.
The U.S. Attorney’s Office and the Civil Rights Division remain committed to investigating allegations of excessive force by those acting under color of law and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are investigated fully and completely.
Federal Authorities to Seek the Death Penalty Against William WoodRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Grant C. Jaquith and John Devito, Special Agent in Charge of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, announced today that United States Attorney General William Barr has authorized and directed the United States Attorney’s Office in Syracuse to pursue the death penalty against William D. Wood, Jr.
Wood, 33, of Syracuse, New York, was indicted by a federal grand jury February 14, 2019 for crimes resulting from the September 15, 2018 armed robbery of Chili’s Bar and Grill in Dewitt, and the murders of two employees committed during the course of that robbery. While charges contained in that indictment carry a maximum sentence of death, the death penalty may only be pursued if authorized by the Attorney General. Following Attorney General Barr’s authorization today, a Notice of Intent to Pursue the Death Penalty was filed by the United States Attorney’s Office.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The case against Wood is being investigated by United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Town of Dewitt Police Department, the New York State Police, and is being prosecuted by Assistant U.S. Attorney Lisa Fletcher.
Former CEO Convicted of Defrauding Food and Drug Administration and Distributing Adulterated DrugsRead the Press Release
WASHINGTON – A jury yesterday convicted Paul J. Elmer, the former CEO and owner of Pharmakon Pharmaceuticals Inc. (Pharmakon), of conspiracy to defraud the Food and Drug Administration (FDA) and nine counts of adulterating drugs, the Department of Justice announced today. Pharmakon was a Noblesville, Indiana, drug compounding facility.
The verdict came after an eight-day trial before U.S. District Judge James R. Sweeney II in Indianapolis, Indiana.
Elmer, 67, formerly a licensed pharmacist and a resident of Fishers, Indiana, was charged by grand jury in a superseding indictment on Feb. 7, 2019. The superseding indictment charged that, from 2013 to 2016, Elmer and Caprice R. Bearden, Pharmakon’s former director of compliance, caused Pharmakon ─ which compounded sterile, intravenous drugs ─ to distribute approximately 70 lots of over- and under-potent drugs to military and civilian hospitals throughout the country.
“As these convictions show, the Department of Justice takes very seriously conduct that unlawfully undermines the safety of compounded drugs,” said Assistant Attorney General Jody Hunt of the Civil Division. “We will not tolerate actions that impede the FDA’s efforts to ensure the safety of products. With its law enforcement partners, the Department of Justice will thoroughly investigate and prosecute those who knowingly prevent the FDA from protecting patients and ensuring compounded drugs are safe.”
“The jury’s findings in this case resonate with citizens of every age,” said Josh J. Minkler, United States Attorney. “Specifically, hospitals and patients from every walk of life rely on the integrity of pharmaceutical manufacturers like Pharmakon to make safe drugs. This defendant prioritized profit over safety and the jury’s verdict demonstrates the government’s resolve to protect our citizens. Good pharmaceutical manufacturers who work with the FDA achieve that goal.”
“Producing unsafe drugs puts patients at risk and is particularly concerning when they reach already vulnerable populations such as premature infants. This conviction demonstrates that those, including drug compounders, who distribute harmful drugs will be held accountable under the law,” said Director Catherine A. Hermsen, FDA Office of Criminal Investigations. “The FDA continues to play an important role in protecting patients—including young children—and we will continue to work with our law enforcement partners to pursue and bring to justice those who place profits before the health of U.S. patients.”
“When drug compounders disregard safety standards and violate the law, patient health can be put at significant risk. In this case, we saw unacceptable behavior from the defendant whose company distributed dangerous products that led to serious adverse events in infants,” said Stacy Amin, FDA Chief Counsel. “The FDA is fully committed to working with the Department of Justice to stop these bad actors and protect patients from potential public health risks.”
Bearden pleaded guilty to all the charges in the original indictment on Nov. 21, 2017. Her sentencing date has not been scheduled.
Evidence at Elmer’s trial showed that, from 2013 to 2016, Pharmakon routinely shipped compounded drugs at Elmer’s direction to customers without having received laboratory test results that verified the drugs were the strength they were supposed to be. Furthermore, evidence showed that, despite receiving test results showing potency failures, Elmer did not recall the drugs, notify the customer, notify the FDA of the potency failures, or conduct any root cause investigation to determine the cause of the failure.
FDA consumer safety officers testified about two inspections of Pharmakon they conducted in 2014. One inspection was prompted by Pharmakon’s distribution of 200 percent potent midazolam, a sedative that was used to treat premature infants, to an Indianapolis hospital. They observed numerous violations of FDA regulations during each inspection, and informed Elmer. But former Pharmakon employees testified that Elmer and Bearden misled and interfered with these first two FDA inspections, in order to prevent the FDA from knowing about the potency failures as well as other aspects of the business. Former employees also testified that certain changes in process that Elmer and Bearden told the FDA Pharmakon would enact, never happened.
According to evidence at trial, in February 2016, the multiple potency failures culminated in Pharmakon’s distribution of 2,460 percent super potent morphine sulfate, an opioid pain medication, to hospitals in Indianapolis and Chicago. Nurses at the Indianapolis hospital administered the morphine, not knowing that it was 2,460 percent super potent, to infants in the pediatric unit. Three infants suffered adverse effects from the narcotic overdose. One infant needed to be revived through the administration of Naloxone (commonly known as Narcan) and sent by helicopter to a nearby hospital with a neo-natal intensive care unit. These adverse events led to a final FDA inspection in which FDA consumer safety officers testified that they discovered evidence of multiple previous potency failures that had been concealed by Bearden during the first two inspections. Former employees testified that Elmer and Bearden misled and interfered with this final FDA inspection as well.
Elmer was convicted of one felony count of conspiracy to defraud the FDA and to obstruct FDA inspections, carrying a maximum punishment of five years in prison and a fine of up to $250,000. He was also convicted of three misdemeanor counts of introducing adulterated drugs into interstate commerce and six misdemeanor counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce. Each of the adulteration counts is punishable by up to one year in prison and a fine of $100,000.
Elmer’s sentencing date has not been scheduled.
Assistant Attorney General Jody Hunt and U.S. Attorney Minkler commended the FDA’s Office of Criminal Investigations, which conducted the investigation. The case was prosecuted by Assistant U.S. Attorney Cindy J. Cho of the U.S. Attorney’s Office for the Southern District of Indiana and Trial Attorney David A. Frank of the Department’s Consumer Protection Branch and, with assistance from Paul Joseph of the FDA’s Office of Chief Counsel.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Indiana visit its website at https://www.justice.gov/usao-sdin.
Estill County Man Sentenced to 240 Months for Armed Fentanyl TraffickingRead the Press Release
LEXINGTON, Ky. — Kevin Scott Abney, 40, of Irvine, Kentucky, was sentenced Friday, to 240 months in federal prison, by United States District Judge Danny C. Reeves, for possession with intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking, and possession of a firearm by a convicted felon.
In June 2018, officers with the Berea Police Department arrested Abney at a business in Berea, Kentucky. During the arrest, officers located 15 grams of fentanyl and two firearms. During his guilty plea, Abney admitted to possessing of the fentanyl and firearms. Abney has seven prior felony convictions, including four crimes of violence, which qualified him as an Armed Career Criminal.
Under federal law, Abney must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for 5 years.
“The defendant’s lengthy criminal history, coupled with his intent to distribute the deadly drug fentanyl while armed, led to his twenty-year sentence,” stated United States Attorney Robert M. Duncan, Jr. “This sentence should send a message: armed drug trafficking has serious consequences and our Office will continue to make prosecution of these cases a core priority. Because of the good work of law enforcement, an armed, dangerous, and repeat offender has been held accountable for his criminal conduct, and our community is safer.”
“ATF is committed to reducing gun violence in our neighborhoods by arresting violent offenders who unlawfully possess firearms,” stated ATF Special Agent in Charge Stuart Lowrey of the Louisville Field Division. “Today’s sentencing of an armed career criminal, is the result of an ongoing commitment by ATF to work with our law enforcement partners to make our communities safer for everyone.”
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge of the ATF Louisville Field Division; and David Gregory, Chief of the Berea Police Department, jointly made the announcement.
The ATF and the Berea Police Department conducted the investigation. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Essex County, New Jersey, Man Admits Conspiracy to Commit Healthcare FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in a conspiracy to submit false and fraudulent insurance claims for out-of-network chiropractic services that were never performed, U.S. Attorney Craig Carpenito announced.
Keasam Johnson, 35, of East Orange, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with one count of conspiracy to commit healthcare fraud.
According to the documents filed in this case and statements made in court:
Johnson worked as a supervisor in the New Jersey office of a large telecommunications company until August 2017. A co-defendant Tiffany Marsh, 41, of West Orange, was a medical biller and the owner and operator of TJB Medical Billing Consultants LLC, through which she provided medical billing to health care providers, including two New Jersey chiropractors. Marsh and Johonson were charged June 26, 2018 with one count each of conspiracy to commit healthcare fraud.
Johnson and other conspirators submitted false and fraudulent insurance claims for out-of-network chiropractic services that were never performed. Marsh allegedly used her access to the billing software at the chiropractor offices to generate the fraudulent claims. Johnson recruited telecommunications company employees to participate in the scheme. The fraudulent claims resulted in the payment of reimbursements to conspirators in exchange for a portion of the proceeds.
The charge of conspiracy to commit health care fraud carries a maximum sentence of 10 years in prison and a $250,000 fine. Sentencing is scheduled for July 24, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office’s OCDETF/Narcotics Unit.
The pending charge and allegations against Marsh are merely accusations, and she is presumed innocent unless and until proven guilty.
East Stroudsburg Man Sentenced to 46 Months’ in Prison for Drug TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 11, 2019, United States District Court Judge A. Richard Caputo sentenced Warren Williams, age 25, of East Stroudsburg, Pennsylvania, to 46 months’ imprisonment for drug trafficking.
According to United States Attorney David J. Freed, Williams distributed over 100 grams of heroin (100 grams of heroin equates to approximately 4,000 individual doses) over a five-month period starting in January 2016, in Monroe County, Pennsylvania.
The case was investigated by the Federal Bureau of Investigation, the Stroud Area Regional Police Department, and the Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
# # #
Eagle Butte Woman Indicted for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine and Maintaining a Drug Involved Premises.
TaLonna Bear Eagle, a/k/a TaLonna LeRae Dupris, age 24, was indicted on March 12, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on April 5, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in federal prison and/or a $5,000,000 fine, up to a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown but no later than on or about April 24, 2018, and continuing through March 12, 2019, Bear Eagle conspired with others to distribute 50 grams or more of methamphetamine and maintained a place for the purpose of distributing methamphetamine.
The charges are merely accusations and Bear Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Bear Eagle was released on bond. A trial date has not been set.
Eagle Butte Man Found Guilty on Drug ChargesRead the Press Release
United States Attorney Ron Parsons announced that Waylon Young Bird, 49, of Eagle Butte, South Dakota, was found guilty of Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance as a result of a two-day federal jury trial in Pierre, South Dakota.
The conviction carries a mandatory minimum of 10 years up to life in prison and an $11,000,000 fine, a mandatory minimum of 5 years up to life of supervised release once released from prison, and $200 to the Federal Crime Victims Fund.
Young Bird was indicted by a federal grand jury on May 15, 2018.
The jury found that from January 1, 2016 until May 15, 2018, Young Bird had knowingly and intentionally combined, conspired, confederated, and agreed with others to distribute and possess with the intent to distribute over 500 grams of methamphetamine, which is a Schedule II controlled substance on, the Cheyenne River Indian Reservation. The Jury also convicted Young Bird of knowingly and intentionally possessing with the intent to distribute a detectable amount of methamphetamine from a March 9, 2018, traffic stop. During this stop, Young Bird was found to have just under 10 grams of methamphetamine hidden in his sock in eight little baggies. Also found during the stop were 74 unused baggies, a straw fashioned into a scoop and a spoon.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for May 16, 2019. The defendant was remanded to the custody of the U.S. Marshals Service.
Dominican National Pleads Guilty to Misusing Social Security Number and Stealing Government BenefitsRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to false representation of a Social Security number and theft of public money.
Noemi Mejia, 51, pleaded guilty to false representation of a Social Security number and theft of public money. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 16, 2019. Mejia was charged in May 2018 and released on conditions.
In August 2001, Mejia applied to participate in the Department of Housing and Urban Development’s Section 8 Program, which is administered by the Boston Housing Authority, using the name, Social Security number, and date of birth of a U.S. citizen from Puerto Rico. By falsely claiming that she was a U.S. citizen, Mejia was deemed eligible to receive Section 8 benefits. Mejia also applied for MassHealth benefits using the identity of a Puerto Rican citizen, which rendered her eligible for more expansive healthcare coverage. Mejia also used the stolen identity to obtain a Massachusetts driver’s license and to work.
While receiving benefits under the stolen identity, Mejia applied for and received additional Section 8 housing vouchers and Food Stamps using her true name. She received these benefits on behalf of her daughter, who is a United States citizen. The amount of the benefits received under these programs is determined, in part, by household income. Because Mejia did not report the income she earned using the stolen identity, she fraudulently received Section 8 benefits and Food Stamps in her true name.
In total, Mejia stole more than $164,000 in federally-funded housing assistance benefits, MassHealth benefits, and Food Stamps.
The charge of false representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of theft of public funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Delaware County Attorney Indicted for Bank Fraud and Aggravated Identity TheftRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dory L. Sater, age 44, of Drexel Hill, Pennsylvania, was indicted on April 2, 2019, by a federal grand jury for attempted bank fraud and aggravated identity theft charges. The indictment was unsealed today following Sater’s arrest and initial appearance.
According to United States Attorney David J. Freed, the indictment alleges that from August 3, 2017 and continuing to on or about March 21, 2018, in Luzerne County, Sater executed a scheme to defraud Fidelity Bank by filing a fraudulent satisfaction piece for a $50,000 mortgage. The indictment also alleges that in doing so, Sater used another person’s means of identification.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the most serious offense is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. The aggravated identity theft charge carries a mandatory, consecutive two-year term of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Darknet Drug Vendor Sentenced to 10 Years in PrisonRead the Press Release
SAN FRANCISCO – Brian Gutierrez-Villasenor was sentenced today to 120 months in prison for possessing with the intent to distribute methamphetamine and transporting funds to promote unlawful activity announced United States Attorney David L. Anderson, Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, Homeland Security Investigations Special Agent in Charge Ryan L. Spradlin, and U.S. Postal Inspection Service Inspector in Charge Rafael Nuñez. The sentence was handed down by the Honorable Susan Illston, U.S. Senior District Judge.
Gutierrez-Villasenor, 27, of San Francisco, pleaded guilty to the charges on November 13, 2018. According to his guilty plea, between 2014 and May of 2018, Gutierrez-Villasenor distributed cocaine and methamphetamine for a Darknet vendor site called JetSetLife. JetSetLife operated on multiple Darknet marketplaces and used encryption technology to avoid interception and monitoring of its communications and transactions. Gutierrez-Villasenor admitted that he provided his contact information to the operators of JetSetLife so they could wire him money from abroad to promote drug distribution. Gutierrez-Villasenor delivered requested drug types and quantities to JetSetLife customers by mailing the drugs through the U.S. Postal Service. For example, on March 23, 2015, an individual in Australia sent Gutierrez-Villasenor a $5,160 wire transfer to distribute drugs for JetSetLife. Gutierrez-Villasenor retrieved the payment in San Francisco and used the money to buy drugs and supplies to fulfill JetSetLife customer orders, and to pay himself for distributing the drugs. Gutierrez-Villasenor admitted that between October 2014 and April 2018, he received over $575,000 to distribute drugs for JetSetLife.
On September 17, 2018, Gutierrez-Villasenor was charged by information with one count of possessing with intent to distribute over 50 grams of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A)(viii), and one count of transporting monetary instruments or funds to promote unlawful activity, in violation of 18 U.S.C. §§ 1956(a)(2)(A) and 2. Gutierrez-Villasenor pleaded guilty to both counts.
In addition to the prison term, Judge Illston also ordered Gutierrez-Villasenor to pay a $40,000 fine and to serve an additional five-year term of supervised release to begin after his prison term. Gutierrez-Villasenor has been in custody since his arrest on May 17, 2018, and will begin serving his sentence immediately.
This prosecution was the result of a coordinated national operation that used the first nationwide undercover action to target vendors of illicit goods on the Darknet. The extensive operation, which culminated in four weeks of more than 100 enforcement actions around the country, resulted in the following:
- Federal arrests of more than 30 Darknet vendors who engaged in tens of thousands of sales of illicit goods;
- Execution of 70 search warrants, resulting in the seizure of massive amounts of illegal narcotics, including 333 bottles of liquid synthetic opioids, over 100,000 tramadol pills, 100 grams of fentanyl, 24 kilograms of Xanax, and additional seizures of Oxycodone, MDMA, cocaine, LSD, marijuana, and a psychedelic mushroom grow found in a residence;
- Seizure of more than 100 firearms, including handguns, assault rifles, and a grenade launcher;
- Seizure of five vehicles that were purchased with illicit proceeds and/or used to facilitate criminal activity;
- Seizure of more than $3.6 million in U.S. currency and gold bars;
- Seizure of nearly 2,000 Bitcoins and other virtual currencies, with an approximate value of more than $20 million;
- Confiscation of 15 pill presses, which are used to create illegal synthetic opioids; and
- Seizure of Bitcoin mining devices, computer equipment, and vacuum sealers.
Additional information on the operation can be obtained here.
Assistant U.S. Attorney Helen Gilbert is prosecuting the case with the assistance of Andy Ding. The prosecution is the result of an investigation by the DEA, FBI, HSI, and USPIS. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Cumberland County, New Jersey, Man Convicted of Three Armed Bank Robberies and Related ChargesRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man was convicted today for his role in three armed bank robberies and related charges, U.S. Attorney Craig Carpenito announced.
Stephan Byrd, 44, of Vineland, New Jersey, was convicted following a two-week trial before U.S. District Judge Robert B. Kugler in Camden federal court on three counts of bank robbery; two counts of using and brandishing a firearm in furtherance of bank robbery; one count of using and discharging a firearm in furtherance of bank robbery; and one count of being a felon in possession of a firearm. The jury deliberated for approximately six hours before returning the verdicts.
According to documents filed in this case and the evidence at trial:
On June 7, 2014, Byrd entered the Ocean City Home Bank in Mays Landing, New Jersey, armed with a gun. He approached the bank teller counter, pointed his gun at bank employees, warned them not to push the panic alarm button, and ultimately stole $5,576. Byrd fled the scene through the nearby woods.
On July 19, 2014, Byrd entered the Newfield National Bank in Vineland, New Jersey, with Charles Sanders, who pleaded guilty previously to his role in the crime. Both Byrd and Sanders were armed with guns and covered up from head to toe. Sanders remained in the lobby of the bank while Byrd vaulted the bank counters to gain access to the bank tellers and cash drawers. Byrd pointed his gun at various bank employees and stole $10,297 from the bank drawers, after which he and Sanders fled through the nearby woods. The money contained dye packs, which exploded during Byrd’s and Sanders’ escape.
On July 21, 2014, Byrd entered the Newfield National Bank in Malaga, New Jersey, armed with a gun and covered up from head to toe. Byrd vaulted the bank counters to gain access to the teller drawers, pointed his gun at the bank tellers, stole $6,139, and ran into the nearby woods. After Byrd ran into the woods, a bank customer attempted to follow him in order to get identifying information. When Byrd noticed that he was being followed, he pointed his gun at the customer and fired a shot in the customer’s direction. Byrd then fled the scene.
Based on today’s convictions, Byrd faces a combined mandatory minimum sentence of 24 years in prison and a potential maximum sentence of life in prison. Each of the seven counts is also punishable by a fine of up to $250,000. Sentencing is scheduled for July 18, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; officers with the Vineland Police Department, under the direction of Chief Rudy Beu; and officers with the Hamilton Township Police Department, under the direction of Chief Stacy V. Tappeiner, with the investigation leading to today’s guilty verdict. U.S. Attorney Carpenito also thanked the officers of the North Brunswick Police Department, the FBI’s Philadelphia Division, and forensic scientists with N.J. State Police Office of Forensic Sciences and Ballistics Laboratory for their assistance in the case.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Jason Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Troy Archie Esq., Camden
Council Bluffs Man Functions as Methamphetamine Trafficking Cell for Mexico-based Drug Trafficking, Sentenced to Imprisonment for Fourteen YearsRead the Press Release
United States Attorney Joe Kelly announced that United States District Judge Robert F. Rossiter, Jr., sentenced Carlos Manriquez-Aviles today to a term of imprisonment of 168 months, to be served in the U.S. Bureau of Prisons. Manriquez, 29 years old, of Council Bluffs, Iowa, pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine, Use of Facilities in Interstate Commerce in Aid of Racketeering, and Conspiracy to Commit Money Laundering.
In 2017, Manriquez distributed multi-pound quantities of methamphetamine in the Omaha/Council Bluffs metropolitan area and laundered drug proceeds through a Wells Fargo Bank account on behalf of Mexican drug traffickers.
The case was primarily investigated by the Omaha Field Division of the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigations.
Convicted Felon Sentenced to 30 Months in Prison for StalkingRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of DESMOND GEORGE DANIAL, 51, to 30 months in prison for interstate stalking. DANIAL, who pleaded guilty on November 8, 2018, was sentenced today before Senior Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minnesota.
According to his guilty plea and documents filed in court, between August 5, 2014, and March 20, 2018, DANIAL repeatedly harassed and threatened his victim, her husband and her family. In 2012, DANIAL was charged and convicted of stalking in Stearns County, Minnesota, and a restraining order was filed against DANIAL preluding him from having contact with the victim. In August 2014, even after the victim left Minnesota and moved to Wyoming, DANIAL continued his harassment by repeatedly sending threatening text messages and emails, including threats of violence, to both the victim and her husband. DANIAL also harassed and threatened the victim’s parents who lived in Bemidji, Minnesota.
This case was the result of an investigation conducted by the Beltrami County Sheriff’s Office with assistance from the FBI Headwaters Safe Trails Task Force.
This case was prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Defendant Information:
DESMOND GEORGE DANIAL, 51
City of residence unknown
Convicted:
- Interstate stalking, 1 count
Sentenced:
- 30 months in prison
- Three years of supervised release
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Columbus Man Pleads Guilty to Murdering Potential WitnessesRead the Press Release
COLUMBUS, Ohio – Antwan L. Hutchinson, 27, of Columbus, pleaded guilty in U.S. District Court to murdering two potential witnesses and conspiring to distribute narcotics.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Roland Herndon, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives (ATF) and Interim Columbus Police Chief Thomas Quinlan announced the pleas entered into before U.S. District Judge Michael H. Watson.
Hutchinson and Michael J. Favors, 26, also of Columbus, were indicted in April 2017 and charged with conspiracy to distribute and possess with intent to distribute controlled substances and murdering two potential witnesses.
According to court documents, Hutchinson led a drug trafficking organization and possessed and distributed cocaine, heroin, oxycodone and marijuana. As part of the drug conspiracy, he and Favors used “trap houses” that were in others’ names as locations to store and sell the drugs. This included using threat of force and using the homes of drug-addicted individuals.
Hutchinson also intimidated, assaulted, threatened and tortured individuals with serious physical harm who were perceived as owing money or drugs to the members of the conspiracy. Further, he tortured and killed individuals who were seen as potential witnesses against the members of the conspiracy.
As part of his plea, Hutchinson admitted he intentionally killed Sidney Campbell and Marie Stamp in February 2017 because they were perceived as potential witnesses against the defendants.
Hutchinson also beat and tortured Cody Campbell in February 2017. Hutchinson used a two-by-four to beat and extension cords to whip Campbell, who died hours after the incident.
Pursuant to the murder charges to which Hutchinson pleaded, the defendant must be sentenced to life imprisonment without the possibility of release.
“As the result of the pleas entered today, Antwan Hutchinson will spend the rest of his life behind bars without the chance of release,” said. U.S. Attorney Glassman. “That’s a just punishment for his crimes. And I hope it provides a sense of closure for the victims’ families.
Hutchinson was indicted federally two months after murdering witnesses. His conviction cannot be appealed and should illustrate that people who kill witnesses will be met not only with justice, but with swift justice.”
U.S. Attorney Glassman commended the investigation of this case by ATF and the Columbus Police, as well as Assistant United States Attorneys David M. DeVillers and Jessica W. Knight who are prosecuting the case.
# # #
Co-conspirators Sentenced for Roles in Marijuana Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – Two men were each sentenced today to over two years in prison for their respective roles in a large-scale marijuana trafficking conspiracy.
According to court documents, Nikco Van Nguyen, 22, of Falls Church, and Michael Ngo, 29, of Fairfax, acted as marijuana redistributors for Cuong Huynh, the leader of a criminal street gang known as the Asian Dragon Family. Huynh led the Washington, D.C. area marijuana trafficking ring that distributed over 100 kilograms of marijuana over a two-year time period.
Huynh operated at the center of the conspiracy, maintaining multiple wholesale sources of supply for marijuana while also maintaining a distribution network in the Washington, D.C. region. Huynh’s girlfriend, Victoria Nguyen, stored tens of thousands of dollars in cash proceeds at a time from the sale of marijuana and safeguarded those earnings for the next wholesale purchase. Nikco Nguyen and Michael Ngo, who were also members of the Asian Dragon Family, distributed marijuana for Huynh, picked up cash proceeds from customers and re-packaged larger quantities of marijuana into redistribution amounts.
Victoria Nguyen was sentenced to two years in prison on April 5 for her role in the conspiracy. Huynh is scheduled for sentencing on May 3.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Special Assistant U.S. Attorney Lena Munasifi and Assistant U.S. Attorney Dennis M. Fitzpatrick prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-12 and 1:19-cr-17.
Choctaw Couple Charged with Making Bomb Threats and Robbing Bank on the Choctaw Indian ReservationRead the Press Release
Jackson, Miss. – David Keith Frazier, 33, and Lauren C. Willis, 26, both members of the Mississippi Band of Choctaw Indians, have been indicted by a federal grand jury for their role in two bomb threats and a bank robbery that occurred on the Choctaw Indian Reservation, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
Frazier and Willis appeared before U.S. Magistrate Judge Linda Anderson today for their initial appearances and arraignments on the indictment. The case is currently scheduled for trial on June 3, 2019, at 9:00 a.m. before U.S. District Judge Carlton Reeves.
Frazier and Willis are charged with two counts of making bomb threats, and one count of bank robbery. The indictment charges that Frazier and Willis used a telephone to make bomb threats to two tribal elementary schools and subsequently used a dangerous weapon to rob the Trustmark Bank located in the Choctaw Town Center in Philadelphia, Mississippi.
The case is being investigated by the Federal Bureau of Investigation and the Choctaw Police Department. The criminal case is being prosecuted by Special Assistant United States Attorney Kevin J. Payne.
The public is reminded that a criminal indictment is simply a formal charge against a defendant. It is merely an accusation, and each defendant is presumed innocent unless and until proven guilty in a court of law.
California Telemarketer Sentenced to Prison for Nationwide Rental Listing ScamRead the Press Release
Carlynne L. Davis, 34, of Lompoc, California, was sentenced on April 5 to 18 months in prison for her participation in a nationwide rental listing scam. Davis worked as a telemarketer at a business owned by Michael S. Davenport, 50, of Santa Barbara, California. Davenport is the former bass guitar player for the Ataris rock band. Last month, Davenport was sentenced to 7 years in prison for his role in the same fraud scam.
Davenport’s Santa Barbara-based business changed names several times but was known variously as MDSQ Productions LLC, Housing Standard LLC, Anchor House Financial, American Standard, American Standard Online, and Your American Standard. Court documents simply refer to the business as “American Standard.”
American Standard was a rental listing scam. From 2009 through 2016, American Standard defrauded over 100,000 would-be renters and home-buyers out of more than $25 million.
At his September 2018 guilty plea, Davenport admitted that American Standard placed ads on Craigslist stating that certain houses were available for sale or rent at very favorable prices. When individuals called in response to these ads, American Standard salespersons told them they would have to purchase American Standard’s list of houses in order to get more information about the property in the Craigslist ad. The salespersons also said that the houses on the American Standard list were in “pre-foreclosure,” that the customers could purchase the houses by simply taking over the homeowners’ mortgage payments, and the deeds to these homes would then be transferred into the customers’ names. The salespersons told the customers that there was a $199 fee for access to the list but claimed that this $199 fee would cover title searches and deed transfers. In addition, regardless of what area of the country the customers lived in, the salespersons told them that the list contained numerous pre-foreclosure properties that were available in their area.
After the customers paid the $199 fee, they learned that the houses on American Standard’s list were not available to be purchased. Instead, the customers found that a substantial number of the addresses contained on the list were fictional and/or no houses existed at those locations. In numerous other cases, the customers learned that the houses were not in pre-foreclosure or financial distress, and were not available to be purchased at below market prices. If the customers asked for more information about the houses they had seen on Craigslist, American Standard’s Customer Service Department always informed them that the houses were no longer available.
American Standard’s victims were located in all 50 states and the District of Columbia. At least 104 victims of the scam were located in 22 counties within the Southern District of Illinois, with multiple victims in both St. Clair and Madison Counties. In addition, American Standard’s list included 534 houses located in Southern Illinois.
Davis worked as a telemarketer for American Standard for approximately 2 years. She pled guilty to her role in the offense last June. At her sentencing hearing today, Chief United States District Judge Nancy J. Rosenstengel found that Davis personally defrauded over 1,000 victims out of more than $273,000. In addition to her prison sentence, Davis was also ordered to serve 5 years of supervised release.
Three other former American Standard employees have been prosecuted for participating in the fraud conspiracy. On January 28, 2019, Mark A. Phillips, 50, and Semjase E. Santana, 37, both of Santa Barbara, California, were each sentenced to serve 5 years of supervised release. Phillips and Santana both worked as telemarketers for American Standard. On March 6, 2019, Cynthia L. Rawlinson, 52, of Santa Barbara, was also sentenced to 5 years of supervised release. Rawlinson was a salesperson who also served as a manager for American Standard for a brief period of time.
This case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The Office of the Honorable Joyce E. Dudley, District Attorney for Santa Barbara County, and the Santa Maria Office of the FBI have provided substantial assistance in the investigation. The case is being prosecuted by Assistant United States Attorneys Scott A. Verseman and Monica A. Stump.Business Owner and Managers Sentenced to Federal Prison for Immigration CrimesRead the Press Release
Jackson, Miss. – China Buffet II owner Cheng Lin, 36, of Meridian, was sentenced yesterday by Senior U.S. District Court Judge David M. Bramlette III to 12 months in federal prison, followed by 5 years supervised release, for harboring illegal aliens at his restaurant in Meridian, announced U.S. Attorney Mike Hurst, Homeland Security Investigations Special Agent in Charge Jere T. Miles, and U.S. Department of Labor Office of Inspector General Special Agent in Charge Rafiq Ahmad.
Lin’s father, Guo Guang Lin, 61, of Brooklyn, New York, and Lin’s wife, Yang Fei Tang, 33, an illegal alien from China, were each sentenced to 6 months in prison, followed by 6 months house arrest, and 3 years of supervised release, for their violations of federal immigration laws. Guo Guang Lin previously pled guilty to harboring illegal aliens, while Tang pled guilty to a Criminal Information charging her with hiring more than 10 illegal aliens within a one year period.
In addition, Cheng Lin’s restaurant, China Buffett of Meridian, Inc. d/b/a/ China Buffet II, was sentenced to two years probation for harboring illegal aliens and ordered to execute an immigration compliance program and pay a $200,000 fine.
"These individuals chose to put profit before people, by secretly employing illegal aliens instead of American workers and cheating to get ahead of their competition. Those who violate our immigration laws, whether individuals or corporations, will be held accountable for their crimes. In order to staunch the flow of illegal immigration, we must prosecute those who are illegally employing, transporting and harboring them in our country. We will continue to prosecute these types of cases throughout Mississippi," said U.S. Attorney Hurst.
"As this case makes clear, Homeland Security Investigations is equally focused in its worksite enforcement efforts on foreign nationals who unlawfully seek employment as well as the U.S. employers who knowingly hire them," said HSI New Orleans Special Agent in Charge Jere Miles. "In addition to preserving fairness for legitimate businesses who operate lawfully, identifying and stopping the criminal networks that engage in cross-border human smuggling is a priority focus for Homeland Security Investigations as the criminal organizations behind this activity have no regard for the well-being of the people they smuggle who are often put at great risk during the dangerous attempt to illegally enter the U.S. HSI will continue to work collaboratively with our federal, state and local partners to investigate and prosecute such activity wherever it may be found."
In 2004, Defendant Guo Guang Lin was listed as one of the principal officers of China Buffet of Meridian. In 2011, Guo Guang Lin became the principal officer of the company. In 2014, the company was dissolved and reincorporated as Lin’s China Buffet of Meridian d/b/a China Buffet II, with Gui Guang Lin and Cheng Lin listed as some of the incorporators.
From 2012 through January 2017, HSI agents observed a 15-passenger van registered to China Buffet II making multiple trips to a house owned by China Buffet of Meridian Inc. to pick up illegal aliens living at the house and transport them to the restaurant where they worked, and back to the home. In January 2013, three illegal aliens were encountered by HSI, two of whom were in a 15-passenger van previously parked at a residence owned by China Buffet where the illegal aliens lived while working at China Buffet.
On February 22, 2017, HSI agents executed a search warrant at China Buffet and encountered 9 illegal aliens. None of them were required to complete any paperwork or show any documents or identification when they were hired as employees, nor were they asked about their immigration status.
Guo Guang Lin was identified by multiple illegal aliens as the driver of the passenger van between the home housing the illegal aliens and the business. Guo Guang Lin was also identified by illegal aliens as a cook at the restaurant. When Cheng Lin was interviewed, he admitted that the employees he paid in cash lived at the house owned by China Buffet II, while the hostess was paid via check. A monthly payroll ledger discovered during the search confirmed illegal employee names, dates worked, amounts paid and other information from July 2013 through January 2017. This ledger was separate from the payroll records for legal employees. It was also discovered through the investigation that China Buffet II omitted wages for their illegal employees when sending payroll records to their accountant in New York. The defendants also failed to withhold and pay federal income taxes on these illegal aliens, failed to prepare I-9 Forms, and failed to report wages to the Mississippi Department of Employment Security or the Internal Revenue Service.
In 2007, HSI arrested numerous illegal aliens employed at a restaurant owned by Cheng Lin in New Orleans. Cheng Lin admitted to paying employees in cash, and that employees were provided lodging, transportation and meals at no expenses. Lin was fined $23,250 for I-9 violations.
Cash and property seized in 2017 from the restaurant, bank accounts, and home of the Defendants, as well as the value of some assets, totaled over $700,000 and was forfeited to the Federal Government.
The case was investigated and indicted by Assistant United States Attorneys Glenda Haynes and Dave Fulcher. It is currently being prosecuted by United States Attorney Mike Hurst.
Bureau of Prisons Tests Micro-Jamming Technology in South Carolina Prison to Prevent Contraband Cell PhonesRead the Press Release
This week, the Federal Bureau of Prisons (BOP) conducted a pilot test of micro-jamming technology at the Broad River Correctional Institution in Columbia, S.C. The test – the first collaboration of this kind in a state corrections facility – was conducted to determine if micro-jamming could prevent wireless communication by inmates using contraband cellphones in a housing unit. This test follows two earlier tests at a federal corrections facility in Cumberland, Maryland.
Contraband cellphones present an ongoing safety and correctional security concern for the public as well as for correctional facilities across the country. Contraband cellphones have been used to run criminal enterprises, distribute child pornography, and facilitate the commission of violent crimes—all while inmates are incarcerated. In South Carolina, officials attributed the deadly April 15, 2018 prison riot in part to contraband cellphones. And on March 5, 2010, a South Carolina inmate ordered a hit on a 15-year corrections veteran from behind bars. He was shot six times and severely wounded.
“While I served as United States Attorney of Maryland, my office prosecuted an inmate who used a smuggled cellphone to order the murder of an innocent witness,” Deputy Attorney General Rod Rosenstein said. “Contraband cellphones in correctional facilities pose a grave danger. We stand ready to help our state and local partners in their efforts to prevent inmates from using contraband cell phones in jails and prisons.”
Assistant Attorney General Beth Williams added, “Offenders should not be able to continue to threaten the public from behind bars. Because the majority of our country’s inmates are housed in state facilities, it is crucial that we work with our state and local partners to test and determine what solutions work best.”
Currently only federal agencies can obtain authorization to jam the public airwaves. State and local prisons cannot. This week’s test was a novel collaborative operation between BOP and the South Carolina Department of Corrections allowing the testing of micro-jamming technology at a state prison.
The test was authorized by the National Telecommunications and Information Administration (NTIA) and coordinated with the Federal Communications Commission. Two NTIA engineers attended the test and performed measurements of the micro-jamming equipment’s radio emissions to observe and document their characteristics. After the test is complete, NTIA will analyze the data and prepare a report.
The BOP will continue to evaluate cell signal detection and interception technologies and work with its federal partners and Congress to achieve cost-effective options to combat this threat to corrections and public safety. The agency does not endorse any specific vendor or product.
Beware of Fraudulent Tax Return Preparers and Tax Schemes PromotersRead the Press Release
BIRMINGHAM – With the tax deadline quickly approaching for individual taxpayers, it is important to be aware of tax scams as well as the importance of being compliant in filing and paying federal taxes timely. Tax cheats are becoming more sophisticated in their schemes and are finding new ways to cheat the system as well as gaining access to your personal and tax information.
“As the tax deadline approaches it is important that our citizens know that tax fraud and schemes is an increasingly serious problem,” U.S. Attorney Jay E. Town said. “The U.S. Attorney’s Office and IRS-Criminal Investigation will continue to aggressively pursue those who attempt to defraud America’s tax system and cheat the public treasury.”
“We have IRS Special Agents located here in Alabama working around the clock to uncover, stop and work with the U.S. Attorney’s Office in prosecuting tax crimes. With the filing season coming to an end, it’s important that the public be aware of various tax schemes and report the scheme to either the IRS or their local police department,” said Thomas J. Holloman, Special Agent in Charge of IRS-CI, Atlanta Field Office.
The U.S. Attorney’s Office for the Northern District of Alabama, along with agents of IRS-Criminal Investigation and other law enforcement partners, is actively engaged in investigating various ways of committing tax fraud as well as combatting those criminals willing to steal identities and commit tax fraud for the unsuspecting public. As of last filing season, multiple tax investigations have been ongoing in our jurisdiction. Approximately 8 convicted individuals have been sentenced as a part of fraudulent tax schemes since May of 2018 in the Northern District of Alabama. The following are highlights of some of those cases:
Pamela Whitt
On November 27, 2018, Pamela Whitt of Bessemer, AL, was sentenced to two years in federal prison, to be followed by one year of supervised release and ordered to pay restitution of $146,177 to the IRS for filing false tax returns to the IRS. Whitt made false representations on her 2011 and 2012 individual tax returns by willfully underreporting receipts from her business and further falsely listed her filing status as single. The receipts related to over 1,000 federal income tax returns prepared. Whitt also filed false tax returns for her clients, to inflate the amount of tax refund they would receive.
Joel Gilbert & David Roberson
On October 24, 2018, Former Alabama State Representative David Roberson was sentenced to two years, six months in federal prison, to be followed by one year of supervised release and a $25,000 fine and Joel Gilbert of was sentenced to five years in federal prison, to be followed by two years of supervised release and a $25,000 fine with 200 hours of community service for their involvement in a Birmingham bribery scheme in which Gilbert bribed Robinson with a $375,000 contract paid to him through his non-profit called the Oliver Robinson Foundation. Robinson pleaded guilty to a tax charge and helped assist in the jury trial against Gilbert.
Patrice Anderson
On July 9, 2019, Patrice Anderson of Fairburn, GA, was sentenced to five years in federal prison, to be followed by one year of supervised release and ordered to pay restitution of $86,703 to the IRS for preparing filing fraudulent tax returns. Anderson filed tax returns claiming refundable credits to which her clients were not entitled so that they could receive much larger refunds from the government than they were eligible to receive. In return, Anderson would charge the clients abnormally high fees – up to $3,000 per fraudulent return – to file their taxes, according to testimony. The court determined that Anderson, who operated Queen’s Fast Tax from 2009 through 2012, had filed tax returns claiming more than $3.6 million in refunds in 2010 and 2011 alone, and that at least half the claimed refunds in those years were fraudulent.
Lanika Brown & Lashan Brown
On May 15, 2018, Lashan Brown was sentenced to three years, ten months in federal prison, to be followed by three years of supervised release and ordered to pay restitution of $120,671 to the IRS and Lanika Brown was sentenced to two years in federal prison, to be followed by three years of supervised release and ordered to pay restitution of $71,500 to the IRS for preparing and filing false tax returns with the IRS. Starting in 2010, Lashan Brown and Lanika Brown were return preparers at Brown Tax Service located in Tuscaloosa, AL. The Brown’s conspired together to prepare at least twenty fraudulent tax returns claiming false education credits for the tax years 2012 and 2013 for a total of $65,500 claimed in fraudulent refunds.
Go to https://www.irs.gov/newsroom/irs-concludes-dirty-dozen-list-of-tax-scams-for-2019-agency-encourages-taxpayers-to-remain-vigilant-year-round for more information on the Dirty Dozen for the 2019 filing season.
For in person interview requests or questions, please contact the Atlanta Field Office IRS-Criminal Investigation Public Information Officer at [email protected].
For further information from the United States Attorney’s Office, please contact the U.S. Attorney’s Office Public Information Officer at [email protected].
Bergen County, New Jersey, Real Estate Developer Admits Conspiracy to Deceive Mariner’s Bank and FDICRead the Press Release
NEWARK, N.J. – An Englewood, New Jersey-based real estate developer today admitted his role in a conspiracy to illegally obtain nominee loans from Mariner’s Bank, U.S. Attorney Craig Carpenito announced.
James Demetrakis, 79, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of conspiracy to make false entries to deceive a financial institution and the FDIC.
According to documents filed in this case, a related case against Fred Daibes and Michael McManus, and statements made in court:
Demetrakis’ longtime business partner, Daibes, was the founder and, until April 2011, chairman of the board of directors, at Mariner’s Bank. The bank was subject to federal banking regulations that placed limits on the amount of money that the bank could lend to a single borrower. Between January 2008 and December 2013, Demetrakis conspired with Daibes and others to orchestrate a nominee loan scheme designed to circumvent the lending limits by ensuring that millions of dollars in loans flowed from Mariner’s Bank to the nominees to Daibes, while concealing from both Mariner’s Bank and the FDIC Daibes’ beneficial interests in those loans.
Demetrakis served as the nominee for a $1.8 million line of credit and recruited two of his relatives to serve as nominees for a $2.625 million loan. After receiving the proceeds of the loans, Demetrakis and the other nominees distributed these monies to Daibes. Daibes and the nominees, including Demetrakis, failed to disclose to Mariner’s Bank that Daibes arranged to make both the interest and principal payments on the loans.
The nominee loans became delinquent on certain occasions when Daibes failed to give the nominees, including Demetrakis, the funds to make the monthly payments. After the FDIC began an investigation into one of the loans, Daibes, McManus, and others created and submitted to the FDIC a false, backdated sales contract to make it appear as though Demetrakis had obtained the $1.8 million loan from Mariner’s Bank in order to pay Daibes for his interest in a real estate venture.
Daibes and McManus were indicted Oct. 30, 2018, on conspiracy and bank fraud charges, which remain pending. The charges and allegations against them are merely accusations, and they are presumed innocent unless and until proven guilty.
The conspiracy charge to which Demetrakis pleaded guilty carries a statutory maximum of five years in prison and a maximum fine of $250,000. Sentencing is scheduled for July 23, 2019.
U.S. Attorney Carpenito credited special agents from the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney; special agents of the FDIC, Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Edward Plaza Esq., Little Silver, New Jersey
Atlantic County, New Jersey, Man Admits Role in Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted defrauding New Jersey state health benefits programs out of millions of dollars by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced.
Edward Sutor Jr., 36, of Linwood, New Jersey, a Ventnor City firefighter, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
Sutor was one of the owners of a company formed to market prescription compounded medications, referred to as “Company 1.” From May 2015 through February 2016, Sutor and others associated with the company persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications.
The conspirators learned that certain compounded medication prescriptions – including pain, scar, and antifungal creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply. The conspirators also learned that the N.J. State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents, would cover compounded medication prescriptions.
Sutor and his conspirators entered into an agreement under which Company 1 would receive a percentage of the amounts paid to compounding pharmacies for prescriptions secured by Sutor and his conspirators. Sutor and his conspirators then recruited public employees, offered them hundreds of dollars per month, and persuaded them to agree to obtain prescription compounded medications without any examination by a medical professional to indicate that the medications were medically necessary. Sutor would obtain insurance and personal information from the public employees and give that information to conspirators. Company 1 would receive a percentage of the amounts paid on these fraudulent prescriptions, which Sutor and others would share.
According to the information, Sutor and his conspirators caused New Jersey to pay over $2 million in fraudulent claims for compounded medications for public employees.
Sutor received $335,552 in gross proceeds for his role in the scheme. As part of his plea agreement, Sutor must forfeit these criminal proceeds and pay restitution of at least $2,682,708. He faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 17, 2019.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Alyson M. Oswald of the U.S. Attorney’s Office in Camden.
Defense counsel: John Zarych Esq., Northfield, New Jersey