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9 April 2019
Mississippi man and Harrison County man admit to roles in a methamphetamine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kedric Pearson, of Waynesboro, Mississippi, and Taylor Espinoza, of Bridgeport, West Virginia, have admitted to their involvement in a methamphetamine distribution conspiracy, United States Attorney Bill Powell announced.
Pearson, age 34, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” Pearson admitted to working with others to distribute methamphetamine in Harrison County and elsewhere from the fall of 2017 to September 2018.
Espinoza, age 21, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” Espinoza admitted to having methamphetamine in August 2018 in Harrison County.
Pearson and Espinoza each face up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Mississippi U.S. Attorneys Warn Taxpayers to Avoid Unscrupulous Tax Return PreparersRead the Press Release
As “Tax Day,” April 15th, approaches, U.S. Attorneys Mike Hurst and Chad Lamar of the Southern and Northern Districts of Mississippi, respectively, remind taxpayers to beware of unscrupulous tax return preparers.
“Every year, some Mississippians are victimized by dishonest individuals looking to make a quick buck by defrauding our tax system. We are committed to bringing these underhanded return preparers to justice. If you suspect tax fraud, contact our offices or your local IRS office. By being vigilant and working together, we can hold these tax fraudsters and cheats accountable,” said U.S. Attorney Hurst.
“I certainly echo the words of my colleague. We, as citizens of the United States, have a legal obligation to timely pay our federal and state taxes and to timely file our tax returns. Those who choose to evade those responsibilities, or take advantage of our citizens who are trying to comply with their legal tax filing obligations, will be met with severe penalties, including prosecution.” said U.S. Attorney Lamar.
While most tax return preparers are professional and honest, some prepare returns with false information in order to improperly boost a taxpayer’s refund, to reduce their liability, or to increase business and preparation fees. Under the law, taxpayers are responsible for what is reported on their returns. When the Internal Revenue Service (“IRS”) uncovers the falsehoods, the taxpayer can face penalties and interest and, if circumstances warrant, criminal prosecution.
The U.S. Attorneys issued the following tips to those who are selecting a tax return preparer:
- Be wary of tax return preparers who claim they can obtain larger refunds than others can.
- Avoid tax return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of your refund into their financial accounts.
- Ensure you use a preparer with a preparer tax identification number (“PTIN”). Paid tax return preparers must have a PTIN to prepare all or substantially all of a tax return.
- Use a reputable tax professional, who enters their PTIN on your tax return, signs the tax return, and provides you a copy of the return (as required).
- Consider whether the individual or firm will be around for months or years after filing the return to answer questions about the preparation of the tax return.
- Never sign a blank tax form.
- Check the person’s credentials. Only attorneys, CPAs, and enrolled agents can represent taxpayers before the IRS in all matters, including audits, collections, and appeals.
The U.S. Department of Justice applies both civil and criminal tools at its disposal to shut down illegal tax return preparation activity. Taxpayers should always remain wary of tax return preparers who claim they can obtain larger refunds than others or engage in other unscrupulous practices. Every year, the Justice Department’s Tax Division, in collaboration with the U.S. Attorney’s Offices, files civil actions seeking court orders to shut down tax return preparers who allegedly prepared false tax returns, and to punish dishonest tax return preparers for their fraudulent activities. When the evidence supports criminal enforcement action, the U.S. Attorney’s Offices will pursue criminal prosecutions of tax return preparers.
The IRS has some additional information on its website about selecting a return preparer and has launched a free directory of federal tax preparers and a list of tips for choosing a tax preparer.
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Mississippi U.S. Attorneys Warn Taxpayers to Avoid Unscrupulous Tax Return PreparersRead the Press Release
As "Tax Day," April 15th, approaches, U.S. Attorneys Mike Hurst and Chad Lamar of the Southern and Northern Districts of Mississippi, respectively, remind taxpayers to beware of unscrupulous tax return preparers.
"Every year, some Mississippians are victimized by dishonest individuals looking to make a quick buck by defrauding our tax system. We are committed to bringing these underhanded return preparers to justice. If you suspect tax fraud, contact our offices or your local IRS office. By being vigilant and working together, we can hold these tax fraudsters and cheats accountable," said U.S. Attorney Hurst.
"I certainly echo the words of my colleague. We, as citizens of the United States, have a legal obligation to timely pay our federal and state taxes and to timely file our tax returns. Those who choose to evade those responsibilities, or take advantage of our citizens who are trying to comply with their legal tax filing obligations, will be met with severe penalties, including prosecution." said U.S. Attorney Lamar.
While most tax return preparers are professional and honest, some prepare returns with false information in order to improperly boost a taxpayer’s refund, to reduce their liability, or to increase business and preparation fees. Under the law, taxpayers are responsible for what is reported on their returns. When the Internal Revenue Service ("IRS") uncovers the falsehoods, the taxpayer can face penalties and interest and, if circumstances warrant, criminal prosecution.
The U.S. Attorneys issued the following tips to those who are selecting a tax return preparer:
• Be wary of tax return preparers who claim they can obtain larger refunds than others can.
• Avoid tax return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of your refund into their financial accounts.
• Ensure you use a preparer with a preparer tax identification number ("PTIN"). Paid tax return preparers must have a PTIN to prepare all or substantially all of a tax return.
• Use a reputable tax professional, who enters their PTIN on your tax return, signs the tax return, and provides you a copy of the return (as required).
• Consider whether the individual or firm will be around for months or years after filing the return to answer questions about the preparation of the tax return.
• Never sign a blank tax form.
• Check the person’s credentials. Only attorneys, CPAs, and enrolled agents can represent taxpayers before the IRS in all matters, including audits, collections, and appeals.
The U.S. Department of Justice applies both civil and criminal tools at its disposal to shut down illegal tax return preparation activity. Taxpayers should always remain wary of tax return preparers who claim they can obtain larger refunds than others or engage in other unscrupulous practices. Every year, the Justice Department’s Tax Division, in collaboration with the U.S. Attorney’s Offices, files civil actions seeking court orders to shut down tax return preparers who allegedly prepared false tax returns, and to punish dishonest tax return preparers for their fraudulent activities. When the evidence supports criminal enforcement action, the U.S. Attorney’s Offices will pursue criminal prosecutions of tax return preparers.
The IRS has some additional information on its website about selecting a return preparer and has launched a free directory of federal tax preparers and a list of tips for choosing a tax preparer.
Mexican Police Officer Indicted for Importing MethRead the Press Release
LAREDO, Texas – A federal grand jury has just returned an indictment charging a 41-year-old Mexican citizen with conspiracy to import methamphetamine and importation of methamphetamine, announced U.S. Attorney Ryan K. Patrick.
Gabriel Garrido Isaias was originally charged by criminal complaint March 15, 2019, and was later remanded to custody. Today, a Laredo grand jury returned the two-count indictment charging him with conspiracy to import and importing methamphetamine into the United States. He is set for his arraignment before U.S. Magistrate Judge Sam Sheldon on April 18, 2019.
According to court documents, Isaias approached the Lincoln-Juarez Bridge #2 on March 14, 2019, driving a Ford F-150. He was sent to secondary examination after which an x-ray examination allegedly revealed anomalies in all four tires. A search of the tires resulted in the discovery of 38.36 kilograms of methamphetamine, according to the allegations.
Further investigation revealed the defendant to be a resident of Nuevo Laredo, Mexico, and is currently a Mexican police officer.
If convicted, he faces a minimum of 10 years and up to life in prison and a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney April Ayers-Perez is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Mexican Man Sentenced to Prison for Illegally Reentering the United States After Prior DeportationRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to almost three months in federal prison.
Hilario Vicente-Vargas, age 29, a citizen of Mexico illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a February 14, 2019, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Vicente-Vargas admitted he had previously been deported from the United States in March 2017 and illegally reentered the United States without the permission of the United States government. Vicente-Vargas was found by immigration agents in November 2018 after he was charged in Linn County, Iowa, with operating a motor vehicle while intoxicated (OWI). Vicente-Vargas was arrested for OWI on February 12, 2017, and on November 5, 2018. Vicente-Vargas was convicted of OWI in both cases on December 31, 2018.
Vicente-Vargas was sentenced in Cedar Rapids by United States District Court Judge C. J. Williams. Vicente-Vargas was sentenced to 86 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Vicente-Vargas is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-01. Follow us on Twitter @USAO_NDIA.
Mexican Man Pleads Guilty to Illegal Use of a Social Security Number and Submitting False Information in an Attempt to Secure a U.S. PassportRead the Press Release
NEW ORLEANS, LOUISIANA – FRANCISCO JAVIER NUNEZ-ALEMAN, age 32, a citizen of Mexico pled guilty to a two-count indictment Wednesday, April 3, 2019 for illegal use of a Social Security Number in violation of Title 42, United States Code, Section 408(a)(7)(B) and using a false social security number in attempting to secure a U.S. Passport, a violation of Title 18, United States Code, Section 1542. He is set for sentencing on July 10, 2019.
NUNEZ-ALEMAN faces a maximum term of imprisonment of not more than ten (10) years, a fine of $250,000.00, and a mandatory special assessment of $100.00 on the false passport application and five (5) years imprisonment on the illegal use of a social security number. Additionally, NUNEZ-ALEMAN is subject to a period of supervised release after imprisonment of up to three years on both counts.
Papers filed in open court revealed that NUNEZ-ALEMAN applied for a U.S. Passport at the Bourg, La Post Office and affixed his actual signature thereto. However, the State Department determined that the Social Security number he used in the application belonged to another individual. He had also purchased a Puerto Rican birth certificate for fraudulent use. Additionally, NUNEZ-ALEMAN used the fraudulently obtained social security number in applying for a job at a Houma, La employer.
U.S. Attorney Peter G. Strasser praised the work of the United States Department of Homeland Security and the U.S. State Department Diplomatic Security Service in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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Men from Ashtabula and Cleveland indicted on firearms chargesRead the Press Release
Two men were indicted on firearms charges.
Christopher J. Alston, 33, of Ashtabula, was charged with being felon in possession of a firearm and ammunition. Alston on January 24 possessed a loaded pistol after being previously convicted of robbery and trafficking in drugs, according to the indictment.
Joshua Walker, 32, of Cleveland, was charged with being a felon in possession of ammunition. Walker possessed shell casings from a 9 mm Luger on October 25, 2017, despite a previous conviction for conspiracy to possess with intent to distribute crack cocaine, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. They are being prosecuted by Assistant U.S. Attorney Jason M. Katz (Alston) and John Hanley (Walker).
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mayor of Bacum, Mexico Sentenced for False Statement in Application and Use of a United States PassportRead the Press Release
TUCSON, Ariz. – On April 8, 2019, Rogelio Aboyte Limon, 47, of Bacum, Mexico, was sentenced by U.S. Senior District Judge Raner C. Collins to 15 months of imprisonment followed by three years of supervised release. Aboyte Limon had previously pleaded guilty to false statement in application and use of a passport.
On Dec. 27, 2018, Aboyte Limon was arrested using a fraudulently obtained United States passport in an attempt to enter the United States through the DeConcini Port of Entry in Nogales, Ariz. Aboyte Limon originally obtained the passport in 2005, renewed it in 2015, and used it on multiple occasions. The false statements in the renewal application included using another person’s identity, claiming United States citizenship, omitting other names he had previously used, and failing to disclose his conviction for a federal felony drug offense. Aboyte Limon is a citizen of Mexico and was the mayor of Bacum, Mexico at the time of his arrest.
The investigation in this case was conducted by the Department of State-Diplomatic Security Service, the Department of Homeland Security-Customs and Border Protection, and the Department of Homeland Security-U.S. Citizenship and Immigration Services. The prosecution was handled by Heather Siegele, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-19-00193-RCC-EJM
RELEASE NUMBER: 2019-047_Aboyte Limon
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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.
Massachusetts and Louisiana Men Charged in Business Email Compromise SchemeRead the Press Release
BOSTON – A Medfield man and Louisiana man were charged today in federal court in Boston in connection with an international business email compromise scheme that defrauded companies of almost $900,000.
Paul M. Iwuanyanwu, 39, of Medfield, and Larry Brown Jr., 37, of Lafayette, La., were indicted for wire fraud and conspiracy to commit wire fraud. Iwuanyanwu was also charged with one count of money laundering.
Iwuanyanwu and Brown allegedly worked with others to breach the email systems of companies and install unauthorized computer programs that diverted company emails to accounts controlled by Iwuanyanwu and Brown’s co-conspirators. As a result, all emails sent by or to the companies were first routed through the email accounts where co-conspirators could view the messages. Co-conspirators also had the ability to send and respond to emails as if they were representatives of the companies.
It is alleged that Iwuanyanwu, Brown, and others, used this unauthorized access to companies’ email accounts to cause the companies to redirect almost $900,000 in payments intended for legitimate business operations to bank accounts controlled by Iwuanyanwu and Brown.
The charge of wire fraud and conspiracy to commit wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. The charge of money laundering charge 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 value of the criminally derived property. 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 Peter C. Fitzhugh, Special Agent in Charge of the Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom, of Lelling’s Securities & Financial Fraud Unit, and Carol Head, of Lelling’s Asset Recovery Unit, are prosecuting the case.
The details 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.
Manchester, Vermont Man Charged with Distribution of Heroin, Fentanyl, and Crack Cocaine in the Manchester, Vermont AreaRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Torrie Smith, 29, who resided in both Manchester, Vermont and Hartford Connecticut, was arrested on federal drug trafficking charges contained in a two-count Indictment. The charges allege that Smith possessed, with intent to distribute, heroin, fentanyl, cocaine, and crack cocaine.
According to court records, the two-count indictment is based on two drug seizures from cars in which Smith was either driving or a passenger. The first count involves a seizure of drugs by the Manchester Police Department on January 25, 2019. According to court records, Smith was a passenger in a car in which the Manchester Police Department later found, pursuant to a state search warrant, approximately 100 grams of cocaine powder, 45 grams of cocaine base, eight grams of heroin and about 44 milligrams of fentanyl. The second count relates to a seizure on November 27, 2018, in Sunderland, Vermont. The Vermont State Police stopped a car in which Smith was driving and later found, pursuant to a state search warrant, approximately 40 grams of cocaine powder, ten grams of crack, and ten bundles of heroin.Smith was arraigned on April 4, 2019 in U.S. District Court in Burlington and pled not guilty to the charges. Upon the government’s motion for detention, Magistrate Judge John M. Conroy ordered that Smith be detained in the custody of the U.S. Marshals Service pending trial.
The Indictment is an accusation only and the defendant is presumed innocent unless proven guilty. If Smith is convicted, he faces a maximum sentence of 40 years with a mandatory minimum sentence of five years imprisonment as well as a fine of up to $5,000,000. If Smith is convicted, his actual sentence will be advised by the Federal Sentencing Guidelines.
This case was investigated by the Vermont Drug Task Force, the FBI, the Vermont State Police (Shaftsbury Barracks), the Manchester Police Department, and the Chester Police Department. The government is represented by Assistant U.S. Attorney Joe Perella. Smith is represented by the Office of the Federal Public Defender in Burlington.
Madison, Indiana man sentenced for possessing unregistered explosive devices and firearmRead the Press Release
New Albany – United States Attorney Josh J. Minkler announced today that a Madison, Indiana man was sentenced March 22, 2019, following his guilty plea to two counts of possession of unregistered destructive devices and one count of being a felon in possession of a firearm. David Theiring, 40, was sentenced to 87 months’ imprisonment by U.S. District Court Judge Tanya Walton Pratt.
“As citizens of this state and this country, we will not tolerate terrorism foreign or domestic of any kind. Those individuals who choose to threaten innocent lives will face the consequences of their actions,” said Minkler.
On Sunday, March 6, 2016, at approximately 1:00 a.m., an improvised explosive device in the form of a pipe bomb was detonated outside the Madison, Indiana Police Department. The event occurred on the sidewalk on the east side of Central Avenue, beside the parking area for the police department. Evidence consisted of pieces of an unknown length of a ¾” white PVC pipe, two end caps, and gray duct tape. No one was injured and no property was damaged, though the bomb was detonated close to police vehicles.
On Wednesday, March 16, 2016, at approximately 2:50 a.m., an improvised explosive device in the form of a pipe bomb was detonated outside the residence of a Jefferson County Indiana Judge in Madison, Indiana. No one was injured and no damage was observed.
David Theiring was identified as a suspect. Law enforcement officers executed a search warrant on Theiring’s residence and he was found to be in possession of two firearms as well as numerous items utilized to manufacture a destructive device.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisville, Kentucky, Indiana State Police, Madison City Police Department, Jefferson County Sheriff’s Office and Jefferson County Prosecutor’s Office.
“ATF strives to be ‘no better partner’ to law enforcement agencies, especially when investigating the criminal use of explosives and bombings,” stated ATF Special Agent in Charge Stuart Lowrey of the Louisville Field Division. “The sharing of resources and collaborative efforts with the Jefferson County Indiana Sheriff’s Department and Madison Indiana Police brought about the swift arrest and incarceration of a dangerous felon. This sentence reflects ATF’s ongoing commitment to reduce violent crime in our communities.”
According to Assistant United States Attorney Lauren M. Wheatley, who is prosecuting the case for the government, Theiring must be serve 3 years of supervised release following her sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting individuals engaged in domestic terrorism and violent crime using firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 1.2 and 2.3
Local Insurance Agent Sentenced to 60 Months for FraudRead the Press Release
Memphis, TN – A local man has been sentenced to 60 months in federal prison for fraud. U.S. Attorney D. Michael Dunavant announced the sentence today.
Following a four-day jury trial in federal court in August 2018, Manzur Mazumder, 50, was convicted on two counts of wire fraud. Manzur Mazumder, an insurance agent, started a hedge fund business, which defrauded several individuals of their retirement savings. Between 2014 and 2017, Mazumder obtained a total of $360,000 from "M.T.," a resident in Hawaii, "J.T.," a resident of Missouri and "A.J.," a resident of Memphis.
According to information presented in court, Mazumder used a large portion of the investor’s fund to pay for personal expenses, including living and travel expenses, a down payment on a condominium, loan payments, debit card charges and overdrafts in several bank accounts. Mazumder day-traded the rest of the investors’ funds in options contracts, resulting in large losses. He returned nominal sums to the victims.
U.S. Attorney D. Michael Dunavant said, "Fraudulent schemes that steal hard-earned retirement savings from innocent victims represent the very worst betrayals of trust in our financial markets, and such dishonesty will be exposed. We are pleased that justice has been achieved on behalf of the victims, and we commend the FBI for their outstanding investigation in this disturbing case. Wherever fraud occurs in the Western District of Tennessee, this office will be prepared to hold offenders accountable."
On April 9, 2019, U.S. District Court Judge John T. Fowlkes, Jr., sentenced Mazumder to 60 months imprisonment. He was also ordered to pay $341,960 restitution to the victims.
The case was investigated by the FBI.
Assistant U.S. Attorneys Dean DeCandia and David Pritchard prosecuted this case on behalf of the government.
Lewiston Pharmacy Tech Sentenced for Conspiracy to Distribute Controlled SubstancesRead the Press Release
COEUR D’ALENE – Marcella Moore, 44, of Lewiston, Idaho was sentenced to federal prison earlier today for conspiracy to distribute controlled substances, announced U.S. Attorney Bart M. Davis. Chief U.S. District Judge David C. Nye sentenced Moore to 54 months in prison followed by three years supervised release. Judge Nye also ordered Moore to pay over $30,000 in restitution to Owl Pharmacy.
According to court records, Moore was employed as a pharmacy technician at Owl Pharmacy in Lewiston. In August 2017, Moore began stealing prescription controlled substances while working at the pharmacy. Moore stole almost 60,000 pills over the next eleven months until she was arrested. These pills included over 45,000 pills of hydrocodone, 1,880 pills of oxycodone and 1,600 pills of Lorazepam. Moore then distributed many of the pills to others who then sold them in the area.
“Medical professionals hold a position of trust over the prescription drugs that they handle and dispense,” said Davis. “When those professionals violate that trust by illegally diverting prescription drugs into our communities, federal, state, local and tribal law enforcement stand ready to bring them to justice.”
DEA Special Agent in Charge Keith Weis said, “Opioid abuse is devastating our communities and we must respond aggressively against those that are profiting from fueling the crisis.”
The pharmacy worked closely with the Bureau of Indian Affairs Drug Division, Drug Enforcement Administration, Federal Bureau of Investigation, Lewiston Police Department and others to catch Moore and stop her criminal conduct.
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Leader of Pagans Motorcycle Gang in Florida Sentenced to Eleven Years in Prison for Role in Methamphetamine Distribution ConspiracyRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Brian Burt, a/k/a “Sledge,” (47, Port Orange) to 11 years in federal prison for conspiring to possess with the intent to distribute methamphetamine.
Burt pleaded guilty on January 16, 2019.
According to court documents, in April 2017, the FBI, and later the DEA, began an investigation into the drug trafficking organizations (DTO) that had supplied motorcycle clubs, including the Pagans Motorcycle Club, operating in the Middle District of Florida with distribution amounts of methamphetamine. At the time, Burt was a member of the Pagans’ Mother Chapter, a group of 13 that directed the Pagans’ criminal activities throughout the United States and conspired with different DTOs to distribute methamphetamine in and around Daytona Beach.
To date, 19 individuals have been found guilty as a result of this joint investigation.
“This case exemplifies the cooperation among federal, state, and local law enforcement agencies to dismantle dangerous criminal organizations that threaten the safety of our communities," said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. "The FBI will continue to target the leadership of these organizations and bring them to justice for the harm caused by their criminal actions.”
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Volusia Bureau of Investigation, the Volusia County Sheriff’s Office, and the Daytona Beach Police Department. It is being prosecuted by Assistant United States Attorney Sean P. Shecter.
Lawrence Man Pleads Guilty to Fentanyl ConspiracyRead the Press Release
BOSTON – A Lawrence man pleaded guilty yesterday in federal court in Springfield in connection with his role in a large-scale drug conspiracy that trafficked dozens of kilos of heroin and fentanyl into Springfield from Bronx, N.Y., and the Dominican Republic.
Francisco Sandoval, 65, pleaded guilty to one count of conspiring to distribute and possess with intent to distribute fentanyl. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for July 9, 2019.
On July 13, 2016, Sandoval received two kilograms of fentanyl from the alleged leader of a Springfield drug trafficking organization, Alberto Marte. Marte had direct contact with heroin suppliers in the Dominican Republic, and on a monthly basis, members of his organization transported between eight and 20 kilograms of heroin, worth a street value of approximately $1.6 million and $4 million, respectively to the Springfield area.
Marte was arrested and charged in September 2016. He is currently in custody awaiting trial.
The charge of conspiracy to distribute fentanyl provides 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. 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; Hampden County District Attorney Anthony D. Gulluni; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police; Springfield Police Commissioner Cheryl Clapprood; Chicopee Police Chief William Jebb; Holyoke Police Chief Manny Febo; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorney Neil Desroches of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lawrence Keefe Will Take the Oath of Office as United States Attorney for the Northern District of FloridaRead the Press Release
TALLAHASSEE, FLORIDA – U.S. Attorney Lawrence Keefe will take the oath of office, joined by 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, will preside over the ceremony. For more information about U.S. Attorney Keefe’s appointment, click here.
Event: Investiture Ceremony
Date: Friday, April 12, 2019
Event Start Time: 3:00 p.m. EDT
(Please arrive at the courthouse no later than 2:30 p.m. to allow time to go through security.)Location:
United States Courthouse, Fifth Floor
111 North Adams Street
Tallahassee, Florida 32301OPEN PRESS, NO CAMERAS. As space is limited, guests and media may be seated in the overflow courtroom.
NOTE: Media must RSVP and present government-issued photo I.D. and valid media credentials. Please RSVP to Amy Alexander at [email protected] by Thursday, April 11 at noon if you plan to attend. Please RSVP with the e-mail addresses of the person(s) attending the event, so that we may reach them directly if details change.
U.S. Attorney Keefe will be briefly available for photographs and video following the ceremony in the U.S. Attorney’s suite on the 4th floor. Please limit questions to those related to the investiture. Please indicate in your RSVP if you will participate in this media availability.
Four-hour metered parking is available on Call Street, Adams Street, and Park Avenue. Press should allow time to go through an initial security screen on the ground level of the courthouse (floor 2). Then they will proceed to a press check-in on the 5th floor before entering the courtroom. There will be no questions at the conclusion of the event.
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.
Laveen Woman Sentenced to Five Years in Federal Prison for Selling MethamphetamineRead the Press Release
PHOENIX – On April 8, 2019, Maria Dawn Goldtooth, 44, of Laveen, Ariz. was sentenced by U.S. District Judge Steven P. Logan to 60 months in prison, followed by a term of three years of supervised release. Goldtooth had previously pleaded guilty to possession with intent to distribute less than 50 grams of a mixture or substance containing methamphetamine.
On two separate occasions in September 2017, Goldtooth sold methamphetamine to an undercover officer from her home located on the Gila River Indian Community. An additional quantity of methamphetamine was seized from Goldtooth’s home during a search in June 2018.
The investigation in this case was conducted by the Gila River Police Department and the Bureau of Indian Affairs. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-2018-00730-PHX-SPL
RELEASE NUMBER: 2019-048_Goldtooth
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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.
Last Defendant in Arson and Insurance Fraud Scheme Sentenced to 17 Years in PrisonRead the Press Release
BLUEFIELD, W.Va. –The last of four defendants from a Southern West Virginia family involved in an arson and insurance fraud scheme was sentenced in United States District Court announced United States Attorney Michael Stuart. James “Punkin” Lester, 47, was sentenced to 17 years in prison following his August 2018 conviction on 23 separate felonies related to the scheme. He was also ordered to pay restitution in the amount of $505, 618.57 and ordered to forfeit an additional $120,000.
“17 years. Arson and insurance fraud are serious crimes for which every citizen pays the price,” said United States Attorney Mike Stuart. “Arson is not only a property crime but it risks lives as well. It is gratifying when defendants like Lester are held accountable, not only by a sentence of incarceration, but by an order of restitution as well.”
Between April of 2012 and January of 2016, Lester, along with his father, Windel Lester, his brother, Greg Lester, his former step-mother, Georgetta Kenney, and others, participated in various ways in three separate but interrelated schemes involving arson, mail and wire fraud, and money laundering. Their overall purpose was to enrich themselves by fraudulently obtaining insurance proceeds on houses they intentionally burned. The houses were insured for amounts greatly exceeding their value and the value of any contents. The houses were located at Matoaka in Mercer County, Huntington in Cabell County, and Ikes Fork in Wyoming County.
Windel Lester was convicted of 17 separate felonies. His sentencing hearing was originally set along with James Lester’s. However, Windel Lester died prior to his sentencing hearing. Others involved included Dudley Bledsoe, Ricky Gleason, and James Browning, all of whom pled guilty and are serving prison sentences.
Senior United States District Judge David A. Faber presided over the trial and the sentencing hearing. Agents with the West Virginia Insurance Commission, the United States Postal Inspection Service, and the West Virginia State Police conducted the investigation. Assistant United States Attorneys Philip H. Wright and R. Gregory McVey handled the prosecution.
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Laplace Woman Pleads Guilty to Filing False Tax ReturnsRead the Press Release
NEW ORLEANS, LOUISIANA – SANDRA RAVEN, age 53, a resident of Laplace, Louisiana, pled guilty Thursday, April 4, 2019 to one count of wire fraud before the Honorable Barry W. Ashe. Sentencing is scheduled for July 11, 2019 at 1:30 p.m.
According to Court documents, RAVEN owned and operated S & R Tax Service out of her home in LaPlace, Louisiana. Beginning in 2012, RAVEN filed fraudulent tax returns with the IRS in the names of others. The tax returns claimed false wages, and RAVEN directed the tax refunds and tax preparation fees to her custody and control.
RAVEN faces a maximum term of imprisonment of 20 years, a maximum period of (3) three years supervised release and a $250,000 fine.
U.S. Attorney Strasser praised the work of the Internal Revenue Service, Criminal Investigations Division for its work in investigating this case. The case is being prosecuted by Assistant U. S. Attorney G. Dall Kammer, Supervisor, General Crimes.
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Knoxville Resident Sentenced to 10 Years in Federal Prison for Enticement of a Minor for Illegal Sexual ActivityRead the Press Release
KNOXVILLE, Tenn. – On April 9, 2019, James Michael Hood, 55, of Knoxville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, U.S. District Court Judge, to serve 10 years and one month in federal prison. Upon his release from prison, Hood will be supervised by the U.S. Probation office for life.
After a jury trial in September 2018, Hood was convicted of enticement of a minor for illegal sexual activity. According to evidence revealed during the trial, in June 2017, Hood attempted to communicate with the 17-year-old female victim by friending her on Facebook. The victim blocked him after less than a day of him sending her inappropriate messages. The victim and her mother reported the inappropriate messages to law enforcement, who initiated an undercover operation posing as the young girl. Hood was provided with a phone number to use if he wanted to text the victim. Believing he was communicating with the young girl, within two minutes of receiving the number, he began texting her. Within 48 hours, he was sending her explicit sexual messages. Hood set up a meeting with the victim; however, instead of being met by the victim, he was met by law enforcement and arrested.
Agencies involved in this investigation included Knoxville Police Department Internet Crimes against Children Task Force, in partnership with the Department of Homeland Security. Jennifer Kolman, Assistant U.S. Attorney represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
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KC Man Pleads Guilty to Armed Robbery of Pizza Hut, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man pleaded guilty in federal court today to illegally possessing the firearm he used in the armed robbery of a Pizza Hut.
Teandre L. Wilson, 39, pleaded guilty before U.S. District Judge Roseann Ketchmark to one count of armed robbery and one count of being a felon in possession of a firearm.
By pleading guilty today, Wilson admitted he robbed the Pizza Hut at 9515 Blue Ridge Blvd., Kansas City, Mo. Wilson entered the Pizza Hut at about 4:30 p.m. on Aug. 12, 2018. He approached the register, made brief small talk with the cashier, then lifted the right side of his shirt to reveal a firearm tucked in his waistband. “Give me your money,” he told the cashier, “or I’ll pop ya.” The cashier emptied the register and handed the money to Wilson, who fled from the premises.
On Aug. 24, 2018, Kansas City police officers responded to a report of gunshots in the area of 6th Street and Benton Boulevard. The caller told officers he heard shots from his residence, then looked out his window and saw a man later identified as Wilson hiding behind a car. Wilson was found by officers in the parking lot of a 7-Eleven store. Wilson was arrested and officers seized a loaded Springfield Armory .45-caliber pistol from his right waistband.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Wilson has three prior felony convictions for possessing a controlled substance, and prior felony convictions for robbery, leaving the scene of an accident and distributing marijuana.
Under federal statutes, Wilson is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Justice Department to Honor Crime Victim AdvocatesRead the Press Release
The Justice Department will honor 12 individuals and programs for their exceptional service to victims of crime during the annual National Crime Victims’ Service Awards Ceremony in Washington, D.C., on Friday, April 12. The Department will also recognize former U.S. Attorney General Ed Meese for a career of outstanding service on behalf of crime victims.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured.”
Each year in April, the Department of Justice observes National Crime Victims’ Rights Week by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ Offices participate in events to bring awareness to the services available to victims. This year’s observance takes place April 7-13, with the theme, “Honoring Our Past. Creating Hope for the Future.”
“Almost 50 years ago, a grassroots movement rose up to support crime victims and survivors, and that movement has grown into a nationwide effort that reaches victims in every corner of our country,” said Matt M. Dummermuth, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “While the Justice Department is making more funding available than ever before to meet victims’ needs, champions like the ones we honor today are offering victims ‘hope for the future.’”
The following award recipients were selected by the Office for Victims of Crime from nominations received from many sources. Individual press releases are available using the included links.
Allied Professional Award recognizes individuals from a specific discipline outside the victim assistance field for their service to victims and/or contributions to the victim assistance field.
- Recipient: Sgt. Amy Dudewicz, Bernalillo County, New Mexico
- Recipient: Diana Faugno, Rancho Mirage, California
Award for Professional Innovation in Victim Services recognizes a program, organization or individual who has helped to expand the reach of victims’ rights and services.
- Recipient: Richard H. Norcross, III, Keasbey, New Jersey
Crime Victims Financial Restoration Award honors individuals, programs or teams that developed innovative ways of funding services for crime victims or instituted innovative approaches for securing financial restoration for crime victims.
- Recipient: Elder and Dependent Adult Protection Team, San Mateo County, California
Crime Victims’ Rights Award honors the dedicated champions throughout our nation whose efforts to advance or enforce crime victims’ rights have benefited victims of crime at the local, state, tribal or national level.
- Recipient: Susan Howley, Washington, D.C.
National Crime Victim Service Award honors extraordinary individuals and programs that provide services to victims of crime.
- Recipient: Eva Velasquez, San Diego, California
- Recipient: Mark Weiner, Newark, Ohio.
Ronald Wilson Reagan Public Policy Award honors those whose leadership, vision and innovation have led to significant changes in public policy and practice that benefit crime victims.
- Recipient: Hallie Bongar White, Tucson, Arizona
- Recipient: Missey Smith, Overland Park, Kansas
Special Courage Award recognizes a victim or survivor who has exhibited exceptional perseverance or determination in dealing with his or her own victimization.
- Recipient: Shari Kastein, Sioux Center, Iowa
- Recipient: James Shaw, Nashville, Tennessee
Volunteer for Victim Award honors individuals for their extraordinary and selfless efforts resulting in positive and lasting changes in the lives of crime victims.
- Recipient: Laura Abbott, Cabot, Arkansas
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
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.
Justice Department Observes National Crime Victims’ Rights Week with Events Throughout the CountryRead the Press Release
Anchorage, Alaska – In observance of National Crime Victims’ Rights Week, April 7-13, 2019, the United States Attorney’s Office, District of Alaska, participated in yesterday’s annual Tree Ceremony hosted by Victims for Justice, to honor those affected by violent crime. The ceremony was held at Hostetler Park in Anchorage at 12:00 p.m. yesterday, where guests were invited to tie colored ribbons, signifying ten types of violent crime onto branches to represent themselves or others who have been impacted by violent crime.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
“Along with our law enforcement partners, we work every day to bring justice to Alaskans who are victims of crime,” said U.S. Attorney Bryan Schroder. “This week we are especially reminded of the toll that criminals take on our communities and our neighbors. In addition to prosecuting the offenders, we strive to support victims and make sure their voice is heard.”
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office, District of Alaska’s Victim Witness Program at 907-271-3041.
Justice Department Observes National Crime Victims’ Rights Week with Events Throughout the CountryRead the Press Release
KNOXVILLE, Tenn. – In observance of National Crime Victims’ Rights Week, April 7-13, 2019, the U.S. Attorney’s Office for the Eastern District of Tennessee will be participating in several events across the district including:
- A bell ringing ceremony to honor victims of crime, “Honoring Our Past – Creating Hope for the Future,” at Chester Foster Park in Chattanooga on Tuesday, April 9, 2019.
- A Crime Victims’ Right Ceremony at the Cocke County Courthouse on Wednesday, April 10, 2019, sponsored by Fourth Judicial District Attorney General James Dunn.
- A Crime Victims’ Tree Planting Ceremony on Friday, April 12, 2019, at Memorial Park Community Center in Johnson City, Tennessee.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
“National Crime Victims’ Rights Week is a time to reflect on the history of the victims’ rights movement, celebrate its progress, and renew commitments to ensure all victims of crime have the rights and services they need to recover and receive the justice they deserve,” said U.S. Attorney J. Douglas Overbey. “The U.S. Attorney’s Office has dedicated victim-witness personnel who serve federal crime victims across the district’s 41 counties. Our prosecutors are also committed to supporting and providing service to victims of all federal crimes, including violent crimes, fraud, identity theft, human trafficking, elder abuse and exploitation, and sexual crimes against children.”
Each year in April, the Department of Justice and U.S. Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Victim Witness Program at 865-545-4167.
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Justice Department Observes National Crime Victims’ Rights Week with Events Throughout the CountryRead the Press Release
Spokane -- Joseph H. Harrington, United States Attorney for the Eastern District of Washington, joined the Department of Justice in announcing observance of National Crime Victims’ Rights Week, April 7-13, 2019.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
U.S. Attorney Harrington said, “The United States Attorney’s Office for the Eastern District of Washington is committed to serving and protecting victims of federal crimes. We remain resolute to achieving justice for all victims of federal crimes.”
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office for the Eastern District of Washington’s Victim Witness Program at (509) 353-2767.
Justice Department Observes National Crime Victims’ Rights WeekRead the Press Release
HAMMOND – United States Attorney Thomas L. Kirsch would like to announce National Crime Victims’ Rights Week, April 7-13, 2019.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/.
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Justice Department Observes National Crime Victims' WeekRead the Press Release
PROVIDENCE, RI – In observance of National Crime Victims’ Rights Week, April 7-13, 2019, the United States Attorney’s Office for the District of Rhode Island will join the Rhode Island Attorney General and Family Service of Rhode Island led observance at the annual Victims’ Grove Ceremony.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
“Every day, every night, around the clock, law enforcement, prosecutors, and community partners work together to support victims of crime,” said United States Attorney Aaron L. Weisman. “As Attorney General William P. Barr noted, we are committed to ensuring that crime victims have our support and a voice as we hold those who have harmed them responsible for their actions.”
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office for the District of Rhode Island’s Victim Witness Program at (401) 709-5023.
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Justice Department Observes National Crime Victims' Rights Week with Events Throughout the CountryRead the Press Release
United States Attorney Mike Stuart Hosts 19th Annual Operation Reach Out Ceremony
CHARLESTON – In observance of National Crime Victims’ Rights Week, April 7-13, 2019, the United States Attorney’s Office for the Southern District of West Virginia hosted the 19th Annual Operation Reach Out Opening Ceremony today at the Robert C. Byrd United States Courthouse in Charleston, West Virginia. Operation Reach Out, a collaborative of local advocacy programs, raises awareness of National Crime Victims’ Rights Week, and educates the community on the various organizations that provide services to crime victims.
Guest speakers included Debbie Casto, a survivor of domestic violence, and her brother, Sergeant Anthony Craigo with the Putnam County Sheriff’s Office. Additionally, advocates, law enforcement and prosecutors across the district received recognition for their coordinated community response to domestic violence, sexual assault and stalking crimes.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
“We are so proud to take part in National Crime Victims’ Rights Week to honor the victims of crime and recognize those who provide services to victims,” said United States Attorney Mike Stuart. “The focus of this year’s ceremony is violence against women, including domestic violence, an insidious crime at every level. We strive every day with a sense of urgency to fight for the victims of crime and against the perpetrators of crime. We should never become so calloused from the pursuit of our daily obligations that we forget the purpose of our work – fighting for and being the voice of the victims of crime.”
“In conjunction with the ceremony, I rolled out Project HOPE (Healing, Officers, Prosecutors, Empowerment), a joint federal and local effort to combat violence against women. Project HOPE crystallizes my absolute commitment to rooting out violence against women in every form.”
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office, SDWV, Victim Witness Program at (304) 345-2200.
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Justice Department Honors Kansas Mother, Crime Victim AdvocateRead the Press Release
KANSAS CITY, KAN. – A Kansas woman who founded the Kelsey Smith Foundation after her daughter was murdered will receive an award from the U.S. Department of Justice for her outstanding service to crime victims, U.S. Attorney Stephen McAllister said today.
Missey Smith of Overland Park, Kan., will receive the Ronald Reagan Public Policy Award honoring leadership, vision and innovation to foster changes in public policy and practice that benefit crime victims.
“Missey Smith and others are building a grassroots movement in America to support and protect victims of crime,” said U.S. Attorney Stephen McAllister. “I want to thank them all.”
On June 2, 2007, Smith’s daughter, Kelsey, was abducted from a department store in Overland Park and murdered.
Smith has lobbied for the Kelsey Smith Act, a proposed federal law that would require phone companies to provide cellphone location information to law enforcement officials in an emergency.
Smith is one of 12 people and programs being honored by the Justice Department at the annual National Crime Victims’ Service Awards Ceremony in Washington, D.C., on Friday, April 12.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured.”
Judge sentences three in Helena drug-related home invasionRead the Press Release
HELENA—A federal judge today sentenced a man and two women convicted of robbery and firearms charges stemming from a drug-related home invasion, U.S. Attorney Kurt Alme said.
Gabriel Elijah Kane Arkinson, 32, of Billings, was sentenced to 15 years in prison and five years of supervised release, while Jaime Nicole Milsten, 35, of East Helena, was sentenced to 10 years and five months in prison and five years of supervised release. A jury in October found both defendants guilty of of conspiracy to commit robbery affecting commerce, robbery affecting commerce and brandishing a firearm in furtherance of a crime of violence.
A third defendant, Melissa Dawn Shurtliff, 28, of Helena, was sentenced to seven years and nine months in prison and five years of supervised release. Shurtliff pleaded guilty to robbery affecting commerce and possession of a firearm in furtherance of a crime of violence.
Senior U.S. District Judge Charles C. Lovell presided.
Prosecutors at trial presented evidence that Arkinson and Milsten entered the residence of a Helena drug dealer on April 23, 2017 to steal drugs and drug proceeds. Arkinson was armed with a sawed-off shotgun, and Milsten searched the residence for drugs and money. A small amount of methamphetamine, U.S. currency and a cell phone were stolen. Shurtliff planned the robbery and acted as the getaway driver.
Assistant U.S. Attorney Tom Bartleson prosecuted the case, which was investigated by the FBI and Montana Regional Violent Crime Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Joshual Hilton Sentenced to Federal Prison on Drug Trafficking and Gun ChargesRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelly D. Dick sentenced JOSHUAL HILTON, age 33, of Baton Rouge, Louisiana, to 384 months in federal prison following his convictions after a three-day jury trial in June 2018 for possession with the intent to distribute methamphetamine, marijuana, and promethazine, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking offense. The Court also sentenced HILTON to 10 years of supervised release following his term of imprisonment and ordered that the firearms be forfeited.
Evidence at trial showed that HILTON sold marijuana to an individual at his residence in September 2016, and thereafter the East Baton Rouge Parish Sheriff’s Office obtained a search warrant to search the defendant’s residence. Prior to the search, law enforcement officers placed HILTON’s residence under surveillance. Officers observed HILTON leave his residence in his automobile and proceed to meet with several individuals in the Sherwood Forest area and engage in what appeared to be drug transactions from his vehicle. HILTON was observed returning to his residence and entering his house, only to leave again a short time later. A marked unit attempted to stop HILTON; however, HILTON led officers on a high speed chase, exceeding 100 miles per hour in some places, running stop signs and passing vehicles on the shoulder in an attempt to elude arrest. HILTON was observed throwing items out of his vehicle window, which were later recovered and determined to be three bottles of liquid promethazine. HILTON abandoned his vehicle at a dead end street, but was later apprehended as he fled on foot.
Officers returned to HILTON’s residence and executed the search warrant. During the search, officers located 1,948 grams of methamphetamine, over five pounds of marijuana, 22 bottles of liquid promethazine, a digital scale, $42,877 in drug proceeds, and a loaded Glock 23 .40 caliber pistol and magazine.
U.S. Attorney Fremin stated, “This conviction and sentence should send a loud and clear message that our office will not tolerate unrepentant drug dealers who continue to sell dangerous drugs in our communities. Enforcing our drug laws prevents addiction and violence from spreading and will continue to be a priority in this district. This operation could not have been a success without the efforts of our outstanding prosecution team, the ATF, the East Baton Rouge Sheriff’s Office and the Livingston Parish Sheriff’s Office.”
“The East Baton Rouge Sheriff’s Office is proud of the partnership we have with the U.S. Attorney’s Office and appreciate their commitment to prosecute these cases on the federal level,” Sheriff Sid Gautreaux said. “We look forward to continuing working together to combat the drugs that plague our community.”
This conviction is part of Operation All in the Famm, an extensive federal, state, and local investigation aimed at dismantling a large scale drug trafficking network based in East Baton Rouge Parish, Louisiana. As a result of this operation, three individuals with significant drug trafficking, firearm, and conspiracy charges have been convicted. Terrance Hilton pled guilty on April 2, 2019 to possession with the intent to distribute heroin and possession of a firearm by a convicted felon. Damiene Lewis pled guilty on April 19, 2018 to conspiracy to distribute cocaine, distribution of cocaine, and possession of a firearm in furtherance of a drug trafficking offense. Hilton faces a significant term of imprisonment, a fine, and a period of supervised release.
This operation is being handled by the U.S. Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the East Baton Rouge Parish Sheriff’s Office, and the Livingston Parish Sheriff’s Office. This matter is being prosecuted by Assistant United States Attorney Jennifer Kleinpeter, who also serves as a deputy criminal chief.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program that was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
Jefferson County Man Pleads Guilty to Filing a False Tax Return Omits More than $300,000 in Business IncomeRead the Press Release
BIRMINGHAM - A Jefferson County man pled guilty today in federal court to filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town and Internal Revenue Service Criminal Investigation Special Agent in Charge Thomas J. Holloman.
According to court documents, LARRY WAYNE BATTLE owned and operated a tax preparation business in Jefferson County, Alabama. On his 2014 tax return, Battle filed a Schedule C for his tax preparation business that reported gross receipts of $128,000. He understated his gross receipts by approximately $321,638, resulting in a tax loss of $163,401.
“There is zero tolerance for tax preparers who cheat on their own income taxes,” said U.S. Attorney Jay E. Town. “Federal prosecutors in this district will continue to make prosecuting these cases a priority.”
“Return preparers have a duty to be honest and truthful on their tax returns they submit throughout the filing season, including their own,” said Thomas J. Holloman, Special Agent in Charge of IRS-CI for the Atlanta Field Office. “This guilty plea is another success in our efforts of defeating the tax cheat and holding them accountable for their actions.”
Sentencing is scheduled for July 30, 2019. Battle faces a maximum sentence of three years in prison, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Allison Garnett and Assistant United States Attorney Melissa Atwood, who are prosecuting the case.
Justice Department Observes National Crime Victims’ Rights Week with Events Throughout the CountryRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank joined the Department of Justice’s observance of National Crime Victims’ Rights Week, April 7-13, 2019.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
“The U.S. Attorney’s Office for the District of Maine always has in mind the interests of the victims in its cases,” said U.S. Attorney Frank. “We work to keep victims informed of developments in their cases, to give them an opportunity to be heard, to vindicate their rights, to obtain restitution for them, to ensure that they are treated with dignity and respect, and to bring them some relief from the injustice that they have suffered. In recent months, victims have addressed the court during sentencings in cases of child pornography, bank robbery, and drug distribution resulting in death.”
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office for the District of Maine’s Victim Witness Program at (207) 780-3257.
Indivior Inc. Indicted for Fraudulently Marketing Prescription OpioidRead the Press Release
WASHINGTON – A federal grand jury sitting in Abingdon, Virginia, has indicted Indivior Inc. (formerly known as Reckitt Benckiser Pharmaceuticals Inc.) and Indivior PLC (Indivior) for engaging in an illicit nationwide scheme to increase prescriptions of Suboxone Film, an opioid drug used in the treatment of opioid addiction, the Department of Justice announced.
According to the indictment, Indivior obtained billions of dollars in revenue from Suboxone Film prescriptions by deceiving health care providers and health care benefit programs into believing that Suboxone Film was safer, less divertible, and less abusable than other opioid-addiction treatment drugs. Indivior also is alleged to have sought to boost profits by using a “Here to Help” program to connect opioid-addicted patients to doctors the company knew were prescribing opioids at high rates and in a clinically unwarranted manner.
“The deadly opioid epidemic continues to devastate communities and families across our nation,” said Principal Deputy Associate Attorney General Jesse Panuccio of the Department of Justice. “The Department of Justice intends to hold accountable those who are in position to know the harm opioid abuse inflicts, but instead choose to profit illegally from the pain of others. Manufacturers, distributors, pharmacies, and doctors should all be on notice that they must follow the law and act responsibly.”
“Opioid addiction is a national epidemic. The indictment alleges that, rather than marketing its opioid-addiction drug responsibly, Indivior promoted it with a disregard for the truth about its safety and despite known risks of diversion and abuse,” said Assistant Attorney General Jody Hunt. “The Department of Justice is committed to holding opioid manufacturers accountable for such unlawful conduct.”
According to the indictment, Indivior developed Suboxone Film around 2007 as a patent-protected alternative to the tablet form of Suboxone, which was then about to face generic drug competition. The primary ingredient in both Suboxone Film and tablets is buprenorphine, a highly potent opioid. Indivior promoted Suboxone Film as safer and less-divertible than its tablet form, even though the company lacked any scientific evidence to support those claims. In particular, Indivior aggressively marketed Suboxone Film, without an established basis, as having a “lower risk of child exposure” and a “less divertible/abusable formulation.” Indivior made these and other false and misleading claims in marketing materials and through representations to physicians, pharmacists, and health care benefit programs throughout the country. The indictment also alleges that, to further its scheme, Indivior announced a “discontinuance” of its tablet form of Suboxone based on supposed “concerns regarding pediatric exposure to” tablets, when in fact Indivior executives knew the primary reason for the discontinuance was to delay the Food and Drug Administration’s approval of generic tablet forms of the drug.
The indictment further alleges that Indivior used its “Here to Help” internet and telephone program as part of its scheme to induce physicians to write prescriptions for Suboxone Film. Touted as a resource for opioid-addicted patients, Indivior used the program in part to connect patients to doctors it knew were prescribing Suboxone and other opioids to more patients than allowed by federal law, at high doses, and in suspect circumstances. The indictment alleges that Indivior executives and employees knew from statistical and numerous firsthand reports that some doctors in the Here to Help referral system were issuing prescriptions in a careless and clinically unwarranted manner.
Indivior’s scheme, as asserted in the indictment, was highly successful, converting thousands of opioid-addicted patients over to Suboxone Film and causing state Medicaid programs to expand and maintain coverage of Suboxone Film at substantial cost to the government. Until earlier this year, when Suboxone Film became subject to generic competition, Indivior retained a high portion of the opioid-addiction treatment market.
The indictment charges Indivior with conspiracy to commit wire fraud, mail fraud, and health care fraud. In addition, the indictment charges the company with one count of health care fraud, four counts of mail fraud, and twenty-two counts of wire fraud. An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
“As this case makes clear, our office will aggressively prosecute health care fraud cases and particularly those that target people struggling with opioid addiction,” First Assistant United States Attorney Daniel P. Bubar of the Western District of Virginia said today. “We are grateful for the tireless investigative work of our partners at FDA, Virginia Medicaid Fraud Control Unit, HHS, and the U.S. Postal Service for taking on these types of important investigations.”
“Our indictment alleges a wide-ranging and truly shameful scheme to put profits over the health and well-being of patients trying to manage substance use disorder and opioid dependence,” said Attorney General Mark R. Herring. “It’s incredibly frustrating that while we have been working to remove the stigma around medication-assisted treatment and make it more widely available, Indivior was allegedly conspiring to exploit patients, taxpayers, and the expansion of MAT. My team and I are proud to have helped lead this investigation, and look forward to helping bring it to a just and fair conclusion.”
“Opioid addiction is a public health emergency and medication-assisted opioid treatment options are an important tool for combatting this crisis. This investigation revealed that Indivior tried to mislead FDA and game the system by attempting to bar competition for Suboxone from the market,” said Melinda K. Plaisier, FDA Associate Commissioner for Regulatory Affairs. “We will continue to pursue and bring to justice those who participate in these schemes to the detriment of public health.”
The United States Attorney’s Office for the Western District of Virginia and the Department of Justice’s Consumer Protection Branch are prosecuting the case. The case was investigated by the Food and Drug Administration’s Office of Criminal Investigations, the Virginia Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services’ Office of the Inspector General, and United States Postal Service Office of Inspector General. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Virginia, visit its website at https://www.justice.gov/usao-wdva.
This prosecution is part of a coordinated effort by the Department’s Prescription Interdiction & Litigation (PIL) Task Force to deploy all available criminal, civil, and regulatory tools to hold opioid manufacturers accountable for unlawful
Indivior Inc. Indicted for Fraudulently Marketing Prescription OpioidRead the Press Release
A federal grand jury sitting in Abingdon, Virginia, has indicted Indivior Inc. (formerly known as Reckitt Benckiser Pharmaceuticals Inc.) and Indivior PLC (Indivior) for engaging in an illicit nationwide scheme to increase prescriptions of Suboxone Film, an opioid drug used in the treatment of opioid addiction, the Department of Justice announced.
According to the indictment, Indivior obtained billions of dollars in revenue from Suboxone Film prescriptions by deceiving health care providers and health care benefit programs into believing that Suboxone Film was safer, less divertible, and less abusable than other opioid-addiction treatment drugs. Indivior also is alleged to have sought to boost profits by using a “Here to Help” program to connect opioid-addicted patients to doctors the company knew were prescribing opioids at high rates and in a clinically unwarranted manner.
“The deadly opioid epidemic continues to devastate communities and families across our nation,” said Principal Deputy Associate Attorney General Jesse Panuccio of the Department of Justice. “The Department of Justice intends to hold accountable those who are in position to know the harm opioid abuse inflicts, but instead choose to profit illegally from the pain of others. Manufacturers, distributors, pharmacies, and doctors should all be on notice that they must follow the law and act responsibly.”
“Opioid addiction is a national epidemic. The indictment alleges that, rather than marketing its opioid-addiction drug responsibly, Indivior promoted it with a disregard for the truth about its safety and despite known risks of diversion and abuse,” said Assistant Attorney General Jody Hunt. “The Department of Justice is committed to holding opioid manufacturers accountable for such unlawful conduct.”
According to the indictment, Indivior developed Suboxone Film around 2007 as a patent-protected alternative to the tablet form of Suboxone, which was then about to face generic drug competition. The primary ingredient in both Suboxone Film and tablets is buprenorphine, a highly potent opioid. Indivior promoted Suboxone Film as safer and less-divertible than its tablet form, even though the company lacked any scientific evidence to support those claims. In particular, Indivior aggressively marketed Suboxone Film, without an established basis, as having a “lower risk of child exposure” and a “less divertible/abusable formulation.” Indivior made these and other false and misleading claims in marketing materials and through representations to physicians, pharmacists, and health care benefit programs throughout the country. The indictment also alleges that, to further its scheme, Indivior announced a “discontinuance” of its tablet form of Suboxone based on supposed “concerns regarding pediatric exposure to” tablets, when in fact Indivior executives knew the primary reason for the discontinuance was to delay the Food and Drug Administration’s approval of generic tablet forms of the drug.
The indictment further alleges that Indivior used its “Here to Help” internet and telephone program as part of its scheme to induce physicians to write prescriptions for Suboxone Film. Touted as a resource for opioid-addicted patients, Indivior used the program in part to connect patients to doctors it knew were prescribing Suboxone and other opioids to more patients than allowed by federal law, at high doses, and in suspect circumstances. The indictment alleges that Indivior executives and employees knew from statistical and numerous firsthand reports that some doctors in the Here to Help referral system were issuing prescriptions in a careless and clinically unwarranted manner.
Indivior’s scheme, as asserted in the indictment, was highly successful, converting thousands of opioid-addicted patients over to Suboxone Film and causing state Medicaid programs to expand and maintain coverage of Suboxone Film at substantial cost to the government. Until earlier this year, when Suboxone Film became subject to generic competition, Indivior retained a high portion of the opioid-addiction treatment market.
The indictment charges Indivior with conspiracy to commit wire fraud, mail fraud, and health care fraud. In addition, the indictment charges the company with one count of health care fraud, four counts of mail fraud, and twenty-two counts of wire fraud. An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
“As this case makes clear, our office will aggressively prosecute health care fraud cases and particularly those that target people struggling with opioid addiction,” First Assistant United States Attorney Daniel P. Bubar of the Western District of Virginia said today. “We are grateful for the tireless investigative work of our partners at FDA, Virginia Medicaid Fraud Control Unit, HHS, and the U.S. Postal Service for taking on these types of important investigations.”
“Our indictment alleges a wide-ranging and truly shameful scheme to put profits over the health and well-being of patients trying to manage substance use disorder and opioid dependence,” said Attorney General Mark R. Herring. “It’s incredibly frustrating that while we have been working to remove the stigma around medication-assisted treatment and make it more widely available, Indivior was allegedly conspiring to exploit patients, taxpayers, and the expansion of MAT. My team and I are proud to have helped lead this investigation, and look forward to helping bring it to a just and fair conclusion.”
“Opioid addiction is a public health emergency and medication-assisted opioid treatment options are an important tool for combatting this crisis. This investigation revealed that Indivior tried to mislead FDA and game the system by attempting to bar competition for Suboxone from the market,” said Melinda K. Plaisier, FDA Associate Commissioner for Regulatory Affairs. “We will continue to pursue and bring to justice those who participate in these schemes to the detriment of public health.
The United States Attorney’s Office for the Western District of Virginia and the Department of Justice’s Consumer Protection Branch are prosecuting the case. The case was investigated by the Food and Drug Administration’s Office of Criminal Investigations, the Virginia Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services’ Office of the Inspector General, and United States Postal Service Office of Inspector General. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Virginia, visit its website at https://www.justice.gov/usao-wdva.
This prosecution is part of a coordinated effort by the Department’s Prescription Interdiction & Litigation (PIL) Task Force to deploy all available criminal, civil, and regulatory tools to hold opioid manufacturers accountable for unlawful practices and to ensure that prescription opioid products are marketed truthfully.
Illegal Alien Pleads Guilty to Unlawful Reentry by an Alien After RemovalRead the Press Release
Gulfport, Miss. – Marco De La Cruz-Martinez, 22, of Mexico, pled guilty yesterday before U.S. District Judge Sul Ozerden to unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, Special Agent in Charge Jere T. Miles with U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
De La Cruz-Martinez will be sentenced by Judge Ozerden, on July 8, 2019. He faces a potential maximum penalty of two years in prison followed by one year of supervised release, and a maximum $250,000 fine. He also faces being removed from the United States following the completion of any prison sentence.
On January 28, 2019, an interdiction agent with the South Mississippi Metro Enforcement Team conducted a traffic stop on a GMC Yukon XL with South Carolina license plates on I-10 eastbound in Jackson County. The agent observed eight occupants of the vehicle, including De La Cruz-Martinez. Border Patrol Agents arrived on the scene shortly thereafter, and interviewed the occupants of the vehicle as to their citizenships, determining that none had proper documents and all were illegally present in the United States. The occupants (2 drivers and 6 passengers) were arrested and transported to the Border Patrol Station in Gulfport.
Further investigation by Homeland Security Investigations and the Border Patrol determined that the 6 passengers were being smuggled within the United States and that De La Cruz-Martinez had previously had been ordered removed from the United States.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security-Homeland Security Investigations, the United States Border Patrol, the Jackson County Sheriff’s Department, South Mississippi Metro Enforcement Team, and the City of Gautier Police Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Huntington Man Sentenced for Federal Heroin OffenseRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who conspired with others to sell heroin in 2017 and 2018 was sentenced today to 41 months in federal prison, announced United States Attorney Mike Stuart. Bryan Michael Adams, 28, previously pled guilty to aiding and abetting the distribution of heroin in federal court in Huntington. Stuart commended the investigative efforts of the FBI Drug Task Force and the Cabell County Sheriff’s Department.
“Heroin dealer after heroin dealer,” said United States Attorney Mike Stuart. “We’re locking them up. We’re united in in fighting the drug epidemic in Huntington through enforcement, prevention and treatment and we’re making tremendous progress.”
On April 4, 2018, a confidential informant contacted Adams to arrange a purchase of heroin. During the telephone call, Adams agreed to sell heroin to the informant and directed the informant to come to the residence he shared with another person located at 4260 U.S. Route 60, Apartment 7 in Huntington. Shortly after, Adams and the other individual met with the informant inside the residence and the other individual distributed heroin to the informant.
As part of his plea agreement, Adams admitted that, from at least November 2017 to April 2018, he conspired with others to distribute heroin in the Huntington area. Adams also admitted to assisting another heroin deal on April 11, 2018, in Huntington and that he was responsible for the distribution of up to 100 grams of heroin during his participation in the conspiracy.
Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
This case was prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), a focused enforcement effort that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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Guatemalan National Living in Rhode Island Sentenced to 42 Months in Federal Prison for Trafficking HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARIO RECINOS, 27, a citizen of Guatemala last residing in Central Falls, R.I., was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 42 months of imprisonment, followed by five years of supervised, release, for trafficking heroin.
According to court documents and statements made in court, this matter stems from an investigation that began after several heroin overdoses in southeastern Connecticut, including two overdose deaths involving a heroin and fentanyl mix that occurred in January 2016. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, revealed that Recinos and others supplied Michael Luciano, of New London, with heroin. Luciano distributed the drug through a network of street-level dealers in southeastern Connecticut.
Recinos has been detained since his arrest on November 14, 2017. On that date, investigators executed 12 federal search warrants and seized more than three kilograms of heroin from members of the conspiracy, including more than one-half kilogram from Recinos.
On December 12, 2017, a grand jury in Hartford returned a 25-count superseding indictment charging Recinos, Luciano and 19 other individuals with various heroin trafficking offenses.
On November 9, 2018, Recinos pleaded guilty to one count of conspiracy to possess with intent to distribute 100 grams or more of heroin.
Recinos faces immigration proceedings when he is released from prison.
On June 27, 2018, Luciano pleaded guilty to one count of conspiracy to possess with intent to distribute one kilogram or more of heroin. On January 29, 2019, he was sentenced to 12 years of imprisonment.
This matter is being investigated by the Drug Enforcement Administration, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations, Connecticut State Police Statewide Narcotics Task Force East and the New London, Norwich, Waterford, Attleboro (Mass.) and Freetown (Mass.) Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Geoffrey M. Stone.
Green Bay Tax Return Preparer Sentenced to 21 Months of Imprisonment for Tax FraudRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on April 1, 2019, Catalina Taboada (age 47), of Green Bay, Wisconsin, was sentenced in federal court to 21 months of imprisonment for willfully preparing false income tax returns in violation of Title 26, United States Code, Section 7206(2). Taboada agreed to pay $571,800 in restitution to the Internal Revenue Service.
In 2009, Taboada started her own tax preparation business in Green Bay, Wisconsin, called Taboada & Associates. According to the plea agreement, Taboada committed fraud at her business in several ways. She fraudulently claimed child tax credits for clients whose children lived exclusively in Mexico. She also claimed child tax credits for clients’ nieces, nephews, cousins or other distant relatives. Taboada additionally claimed dependent exemptions for children who were not residents of the United States, Mexico or Canada. Taboada admitted to understanding the qualifying rules for child tax credits and exemptions, but nevertheless said that she made the fraudulent claims to “stimulate the economy.”
“The honest women and men who pay their hard-earned money in taxes deserve to know that unscrupulous people who cheat on their taxes will be investigated, prosecuted, and incarcerated,” said U.S. Attorney Krueger. “Together with the IRS-Criminal Investigation, the Department of Justice will continue to prosecute tax fraud aggressively.”
Gabriel Grchan, IRS Criminal Investigation Special Agent in Charge said, “This sentencing demonstrates the commitment that IRS Criminal Investigation has in ferreting out fraudulent tax return preparers who play by their own rules and use a variety of methods to cheat the system. It is important for taxpayers to know that fraudulent tax preparers will be brought to justice.”
This case was investigated by IRS Criminal Investigation. The case was prosecuted by Assistant United States Attorney Keith S. Alexander.
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Georgia Man Pleads Guilty to Check Cashing SchemeRead the Press Release
ALBANY, NEW YORK – Alphonso L. Howard, Jr., age 28, of Decatur, Georgia, pled guilty today to creating counterfeit checks and then cashing them at banks in Saratoga and Warren Counties.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Acting Superintendent Keith M. Corlett.
Howard pled guilty to one count of conspiring to commit bank fraud and one count of aggravated identity theft.
Howard admitted that he and co-conspirators defrauded financial institutions by intercepting and stealing checks sent through the U.S. Mail; using information from these legitimate checks to create counterfeit checks drawn on the same financial accounts as the stolen, legitimate checks; and then cashing and attempting to cash the counterfeit checks at financial institutions in Saratoga and Warren Counties.
Howard, who has been in custody since September 26, 2018, will be sentenced on August 12, 2019 by Senior United States District Judge Gary L. Sharpe. He faces at least 2 years and up to 30 years in prison, a maximum $1 million fine, and up to 5 years of post-release supervision. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Howard has also agreed to forfeit $16,660 in cash he possessed at the time of his arrest, and to entry of a money judgment in the amount of $164,077.70.
This case is being investigated by the FBI and the New York State Police-Troop G, and is being prosecuted by Assistant U.S. Attorney Michael Barnett. Other agencies have assisted in the investigation and prosecution, including the District Attorney’s Offices in Saratoga and Warren Counties, the Glens Falls Police Department, the Burlington Police Department (Vt.), Vermont State Police, and the Stowe Police Department (Vt.).
Gary Woman Ordered to Pay $195,622 in RestitutionRead the Press Release
HAMMOND – Charlotte Hunter, 69 years old, of Gary, Indiana, was sentenced, on April 2, 2019, by District Court Judge Philip P. Simon on her plea of guilty to health care fraud, announced U.S. Attorney Kirsch.
Hunter was sentenced to time served followed by 2 years supervised release and ordered to pay $195,622.09 in restitution.
According to court documents, Hunter and her co-defendant billed Indiana Medicaid for services not rendered, inflating mileage for trips from Northwest Indiana to Indianapolis by approximately 100 miles per trip.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General in coordination with the Indiana Medicaid Fraud Control Unit and handled by Assistant United States Attorney Diane L. Berkowitz.
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Four More Defendants Sentenced in Drug Conspiracy that Trafficked Crystal Ice, Oxycodone and Other Drugs into Virginia from GeorgiaRead the Press Release
Abingdon, VIRGINIA – Four members of a drug distribution organization that trafficked methamphetamine, heroin, oxycodone, cocaine, and other drugs from Georgia into Southwest Virginia were sentenced recently in federal court on drug conspiracy charges, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark R. Herring announced.
In a hearing last week, Timothy Terrell Peek, 34, of Union Point, Georgia, was sentenced to 108 months’ incarceration. He previously pleaded guilty to one count of conspiracy to distribute methamphetamine, heroin, oxycodone, cocaine, and alprazolam.
Also in recent weeks, Douglas Michael Urnick, 36, of Coeburn, Va., was sentenced to 24 months’ incarceration; Dale August Leichtenberg, 39, of Saint Charles, Va., was sentenced to 5 months’ incarceration; and Rebecca Owens, 58, of Big Stone Gap, Va., was sentenced to a period of three years’ probation. Each defendant previously pleaded guilty to one count of conspiracy to distribute controlled substances, to include methamphetamine, heroin, oxycodone, and alprazolam.
“In 2017, more than 72,000 Americans died from fatal drug overdoses—more than the total number of U.S. troops killed during the Vietnam War,” U.S. Attorney Cullen stated. “Heroin, fentanyl, and other prescription opioids are the leading causes of this death epidemic, which has also devastated the Western District of Virginia. As U.S. Attorney, I am committed to working with our federal, state, and local partners to target individuals and organizations primarily responsible for importing, distributing, and unlawfully prescribing these deadly substances and sending them to federal prison. We are also committed to meaningful prevention and recovery initiatives, recognizing that we can’t arrest our way out of this crisis.”
“Prescription drug abuse remains a concern throughout Virginia and my team and I work diligently with our law enforcement partners to bring those who distribute drugs in the Commonwealth to justice,” Virginia Attorney General Herring said today. “We appreciate the hard work and dedication of our law enforcement partners in connection with this investigation. My office will continue our work to address the prescription drug epidemic in the Commonwealth to make our communities safer.”
In all, 11 individuals are charged as part of this drug trafficking conspiracy. One defendant remains scheduled for sentencing in October 2019. The two lead defendants are scheduled for trial in September 2019.
According to court records and evidence presented at previous hearings by Special Assistant United States Attorney and Virginia Assistant Attorney General Suzanne Kerney-Quillen, these defendants conspired to traffic a variety of controlled substances, including methamphetamine, heroin, cocaine, morphine, oxycodone, and alprazolam, from sources in Watkinsville, Athens, and Augusta, Georgia, into Southwest Virginia for redistribution. The organization operated primarily in Lee and Wise counties from November 2016 through March 1, 2018. Arrests on March 1, 2018, resulted in the seizure of approximately 197 grams of crystal ice methamphetamine, in addition to heroin, cocaine, morphine, and oxycodone, with a street value of nearly $30,000.
The investigation of the case was conducted by the Southwest Virginia Drug Task Force, Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Lee County Sheriff’s Office, Scott County Sheriff’s Office, Wise County Sheriff’s Office, Norton Police Department, Big Stone Gap Police Department, and the U.S. Marshals also assisted with the execution of search warrants and arrests connected with this case. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
Former U.S.D.A. Farm Service Agency Loan Officer in Uvalde Sentenced to Two Years in Federal Prison in Farm Loan Fraud CaseRead the Press Release
Barbara Serna Salinas, a 43-year-old former loan officer for the United States Department of Agriculture (USDA) Farm Service Agency (FSA) in Uvalde, was sentenced to two years in federal prison for a farm loan fraud scheme, announced United States Attorney John Bash.
During sentencing yesterday in Del Rio, U.S. District Judge Alia Moses also ordered Serna to pay $166,744.20 in restitution to the USDA and be placed on supervised release for a period of five years after completing her prison term.
On June 28, 2018, Serna pleaded guilty to one count of making a false statement on a loan application. By pleading guilty, Serna admitted she issued multiple fraudulent FSA loans from May 2011 through June 2016. Furthermore, in exchange for approving the loans, Serna accepted cash or other forms of payment from her co-defendants, Ruben James Valadez, age 44 of Uvalde, and Eric Torres Neira, age 44 of San Antonio. According to court documents, a review of USDA loans approved by Serna after 2011 identified several to Neira and Valadez, which totaled more than $150,000.
On December 4, 2018, Judge Moses sentenced Neira to five months imprisonment and ordered him to pay restitution to the USDA, joint and severally with Serna, in the amount of $142,961.94. Valadez is currently awaiting sentencing on October 2, 2019. Neira and Valadez pleaded guilty to the same false statement charge--Neira on March 29, 2018; Valadez on April 26, 2018.
The United States Department of Agriculture Office of Inspector General-Investigations, with the assistance of the Federal Bureau of Investigation, conducted this investigation. Assistant United States Attorney Todd Keagle is prosecuting this case on behalf of the Government.
Former U.S. Army Reserve Employee Pleads Guilty to Wire Fraud and TheftRead the Press Release
A former U.S. Army Reserve employee pleaded guilty today to charges of wire fraud and theft of government money as part of a scheme to steal more than $400,000 from the 63rd Regional Support Command at Moffett Field in Mountain View, California, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Ramon Torry, 54, of Irvine, California, pleaded guilty to one count of wire fraud and one count of theft of government money before U.S. District Judge Beth Labson Freeman in the Northern District of California, San Jose Division. Sentencing has been scheduled for July 30, 2019.
According to the plea documents, Torry devised a scheme to steal money from the 63rd Regional Support Command related to a contract for the creation of a Public Service Announcement (PSA) touting the Command’s accomplishments. In February 2016, Torry began creating fake invoices for work allegedly performed by the Calfornia production company for the production of the PSA as well as for training and other services that were never performed. Torry then directed others in the Command to make payments to the company contracted to produce the PSA by both government purchase card and wire payments. Between December 2015 and October 2017, Torry directed payments from the 63rd to the production company totaling more than $414,000. He then directed Person A at the company to kick back more than $300,000 of those funds to Torry, which he converted to his own use and that of others.
The General Services Administration Office of Inspector General and the U.S. Army Criminal Investigation Command investigated the case. Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section is prosecuting the case. Assistant U.S. Attorney Marissa Harris from the Northern District of California has provided assistance with the case.
Former Tigard Resident Sentenced to Seven Years in Federal Prison for Defrauding Investors in Ohio Gold MineRead the Press Release
PORTLAND, Ore.—Harry Dean Proudfoot III, 79, formerly a resident of Tigard, Oregon, was sentenced today to 84 months in federal prison and three years’ supervised release for running a fraudulent gold mining investment scheme and stealing approximately $4 million from more than 140 investors.
According to court documents and information shared at trial, in 2008, Harry Proudfoot created 3 Eagles Research and Development, a company based in Tigard, that he used from 2008 through 2012 to solicit investors for a purported goldmining operation in Ohio. Harry Proudfoot, along with his adult children, including co-defendant Matthew Proudfoot, falsely promised to use investors’ money to purchase mining equipment and conduct mining operations at two gravel pits in Ohio.
To entice investors, Proudfoot and his children offered high rates of return, typically 10% of gross revenues, payable once the mine became operational. They falsely told investors they had all the necessary legal and business requirements in place for the mining operation.
At the same time, Proudfoot and his children withheld important facts from investors including that Harry Proudfoot had received cease and desist orders from the States of Alaska and Oregon for selling unregistered securities through material misrepresentations in 1992, 1993, and 2003 and that Matthew Proudfoot had filed for bankruptcy in 2010. Rather than using investor money as promised, they diverted it to their personal use, funding living expenses, cars, travel, credit card bills, medical payments, lulling payments and other expenses to keep the scheme afloat.
In 2011, the U.S. Securities and Exchange Commission (SEC) began investigating the group for securities violations. Ultimately, the U.S. District Court for the District of Oregon entered a judgment against Harry Proudfoot, Matthew Proudfoot and the 3 Eagles Research and Development Company in the SEC enforcement action
On December 13, 2018, a federal jury convicted Proudfoot of conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering.
Proudfoot’s son and co-defendant Matthew Proudfoot pleaded guilty to wire fraud and money laundering on November 1, 2017. He will be sentenced on July 8, 2019.
The case was investigated by the FBI and IRS Criminal Investigation, and prosecuted by Scott E. Bradford and John C. Brassell, Assistant U.S. Attorneys for the District of Oregon.
Former Philadelphia Police Officer Sentenced to Prison for Fraud and Ordered to Forfeit over $653,000 in Ill-Gotten GainsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Victor Gates, 72 of Philadelphia, PA, a retired 30-year veteran of the Philadelphia Police Department, was sentenced today to serve 40 months in prison, followed by two years’ supervised release, and to pay a $15,000 fine. Gates was also ordered to forfeit $653,319.10 in proceeds from his crimes. The sentence was imposed by the Honorable Wendy Beetlestone of the United States District Court for the Eastern District of Pennsylvania.
Gates was convicted at trial of one count of conspiracy to commit honest services fraud, fourteen counts of honest services mail fraud, and two counts of lying to federal investigators. The charges arose from Gates’s orchestration of a seven-year bribery scheme during which he paid a Philadelphia Police detective for special access to law enforcement databases in order to build up Gates’ lucrative towing business. The evidence at trial showed that Gates’s business made monthly bribe payments by check since at least May 2008. In total, Gates paid the detective $25,200 to abuse his access to law enforcement databases. The jury also found that during the investigation, Gates lied on two occasions to federal investigators about the corrupt arrangement.
“Through his corruption and criminality, Gates has disgraced himself, embarrassed his former colleagues, and corrupted a former police detective who viewed Gates as a mentor,” said U.S. Attorney McSwain. “The sentence imposed today should send a message that such corruption will be vigorously prosecuted and the offenders held to account, no matter who they are or what position they hold.”
“After 30 years on the force, Victor Gates knew well that bribing a police officer was an egregious crime,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “Nonetheless, he stuck with his scheme, ensnaring a former colleague and ignoring all ethical boundaries in order to make a buck. What a shame. Know that the FBI will continue to tenaciously investigate such corruption, and bring those involved to justice.”
“While we are saddened that a former law enforcement officer has engaged in such egregious conduct, we certainly appreciate the efforts of our federal law enforcement partners in bringing Mr. Gates to justice,” said Philadelphia Police Commissioner Richard Ross. “The investigation, arrest, and successful prosecution of Mr. Gates serves as an emphatic reminder that no one may operate outside the law, regardless of position or affiliations.”
The case was investigated by the Federal Bureau of Investigation and the Internal Affairs Division of the Philadelphia Police Department and was being prosecuted by Assistant United States Attorney Eric L. Gibson.
Former McKees Rocks Man Pleads Guilty to Possessing FentanylRead the Press Release
PITTSBURGH, PA –A former resident of McKees Rocks, PA, has pleaded guilty to possessing with the intent to distribute a quantity of fentanyl, United States Attorney Scott W. Brady announced today.
Terrance Murphy, 46, entered a guilty plea before United States District Judge Cathy Bissoon to one count of possession with intent to distribute a quantity of fentanyl. Murphy has been detained since his initial appearance and will remain detained pending sentencing. Sentencing is scheduled for August 9, 2019 at 10 a.m.
According to information presented to the court, on or about November 8, 2017, the FBI Opioid Task Force was conducting an investigation into Murphy. On that same date, members of the Task Force observed Murphy leave his home in McKees Rocks and enter an SUV. A traffic stop was later conducted on the SUV Murphy was driving and a search of the vehicle revealed approximately 26 grams of fentanyl. Murphy would later admit to FBI investigators that he was a fentanyl distributor and would buy and sell fentanyl in the Pittsburgh area.
The law provides for a maximum sentence of up to 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorneys Timothy M. Lanni and Jeffrey R. Bengel are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the guilty plea in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, West Mifflin Police Department, Stowe Township Police Department, McKees Rocks Police Department, and Pennsylvania Attorney General’s Office.
Former Donna ISD Police Officer Heads to Prison for Assisting “Rip Crew”Read the Press Release
McALLEN, Texas – A 40-year-old Donna man has been ordered to federal prison following his conviction of conspiracy to possess with the intent to distribute more than 100 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick. Juan Fernando Mata pleaded guilty Jan. 9, 2019.
Today, U.S. District Judge Micaela Alvarez ordered Mata to serve 130 months in federal prison to be immediately followed by four years of supervised release.
At the hearing, Judge Alvarez considered Mata’s role in assisting members of a “rip crew” by conducting fraudulent traffic stops on drug load vehicles so that members of that crew could steal the controlled substances.
Specifically, the court considered Mata’s role in conducting traffic stops in January 2016 and another in May 2017, to assist members in stealing approximately nine kilograms of cocaine and approximately 400 pounds of marijuana, respectfully,
The court also heard allegations were made about Mata assisting members of a second “rip crew” by conducting similar activity.
In pronouncing the sentence today, Judge Alvarez noted that while the rip crew members’ conduct in conducting home invasions and carjackings was reprehensible, Mata’s conduct could also be described as such. The court stated how Mata’s actions eroded the public trust and the sense of security in knowing that law enforcement officers are individuals that can be turned to in the event of a home invasion or other criminal conduct. Judge Alvarez noted that when any law enforcement officer commits criminal conduct, it effects law enforcement as a whole and gives the area a bad name.
In considering the many letters of support for Mata, including the City of Donna Mayor and employees of Donna Independent School District, the court noted its concern with individuals viewing him as a role model. She stated that it speaks to poor principles when someone sworn to uphold and enforce the law completely disregards it.
Mata was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol and Hidalgo County Sheriff’s Office. Assistant U.S. Attorneys Roberto Lopez Jr. and K. Alejandra Andrade prosecuted the case.
Former Director of Financial Aid at New York Graduate School and Two Former Students Sentenced to Prison for Bribery and Kickback SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that MELANIE WILLIAMS-BETHEA, the former director of financial aid at Teachers College, Columbia University, and two former Teachers College students, MAWULI HORMEKU and CARMEN CANTY, were sentenced to prison terms for their respective roles in illicitly obtaining hundreds of thousands of dollars from Teachers College through a years-long bribery and kickback scheme. WILLIAMS-BETHEA was sentenced today by U.S. District Judge Alison J. Nathan, who previously sentenced HORMEKU and CANTY. The defendants received the following sentences:
MELANIE WILLIAMS-BETHEA
40 months in prison
MAWULI HORMEKU
12 months and one day in prison
CARMEN CANTY
3 months in prison
WILLIAMS-BETHEA pled guilty to conspiracy to commit bribery on October 17, 2018; HORMEKU pled guilty to committing bribery on July 26, 2018; and CANTY pled guilty to committing bribery on July 31, 2018. Two additional students who participated in the scheme, ANNICE KPANA and KYLA THOMAS, also have pled guilty and are scheduled to be sentenced later this month.
U.S. Attorney Geoffrey S. Berman said: “These defendants exploited and stole from an institution of higher learning, taking money that was intended to help provide opportunities for individuals training to teach future generations. They cumulatively pocketed more than $2 million, and their prison sentences reflect the significant harm caused by their conduct.”
According to the Indictment, other filings in Manhattan federal court, and evidence presented in court at the sentencings:
From 2008 through 2017, the defendants engaged in bribery and kickback schemes resulting in the loss of more than $2 million from Teachers College. WILLIAMS-BETHEA, who was employed by Teachers College as the director of financial aid during the relevant time period, perpetrated the scheme by approving aid payments to HORMEKU, CANTY, KPANA, and THOMAS (collectively, the “Students”) far in excess of their actual need, and then obtaining portions of the unjustified aid allotments she approved as kickback payments from the Students.
Specifically, WILLIAMS-BETHEA approved excessive “cost of attendance” figures for the Students that did not comport with their actual needs or costs of living, which had the effect of increasing the amount of financial aid they were eligible to receive, and by then approving stipends for the Students up to – and at times exceeding – these inflated amounts. To facilitate some of the stipends, WILLIAMS-BETHEA created fraudulent stipend request forms for financial awards to the Students, which gave the appearance that professors or other administrators had requested stipends, when in fact they had not, and then approved the fraudulently requested stipends herself.
After WILLIAMS-BETHEA facilitated these awards of unjustified financial aid, HORMEKU, CANTY, KPANA, and THOMAS paid WILLIAMS-BETHEA nearly $1 million in kickbacks.
* * *
In addition to the prison terms, Judge Nathan ordered WILLIAMS-BETHEA, 49, to pay restitution and forfeiture in the amount of $2,067,349; ordered HORMEKU, 39, to pay restitution and forfeiture in the amount of $620,010; and ordered CANTY, 40, to pay restitution and forfeiture in the amount of $166,105.
Mr. Berman praised the investigative work of the Department of Education, Office of the Inspector General in this investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Thomas McKay and Alex Rossmiller are in charge of the prosecution.
Former Councilman Larry Duncan Sentenced to 6 Months’ House Arrest in Public Corruption ProbeRead the Press Release
Former Dallas City Councilman Larry Duncan was sentenced this morning on charges stemming from the public corruption investigation into Dallas County Schools (DCS), announced U.S. Attorney Erin Nealy Cox.
A former DCS Board of Trustees President, Mr. Duncan, 73, pleaded guilty in October to one count of tax evasion, admitting he failed to pay income tax on campaign contributions from a DCS vendor. He was sentenced this morning to six months of home confinement and three years of probation; he will also be required to repay more than $45,000 in back taxes and interest and perform community service for the City of Dallas.
“This particular investigation has netted six convictions to date,” said U.S. Attorney Nealy Cox. “We expect elected officials to be absolutely fastidious with money they receive as a result of their official position. When public officials behave unscrupulously, North Texas can count on federal prosecutors to intervene. We hope officials will heed our commitment to exposing corruption in any form it takes, and act accordingly.”
According to plea papers, between 2012 and 2016, Mr. Duncan accepted nearly a quarter of a million dollars in campaign contributions from Force Multiplier Solutions president Robert Leonard, who happened to be pursuing lucrative stop-arm camera contracts with DCS.
Instead of putting Mr. Leonard’s money towards legitimate campaign expenses associated with his DCS re-election bid, Mr. Duncan admits he used at least $184,726.03 for personal benefit, taking out cash withdrawals, passing on money to his wife, and even using funds to pay car-related expenses.
He then failed to disclose the money he diverted from the campaign on his tax returns, hiding the income from the IRS.
Mr. Duncan’s campaign contributor, Mr. Leonard, along with former Mayor Pro Tem Dwaine Caraway, pleaded guilty in August to conspiracy to commit honest services wire fraud, after the DCS investigation revealed that Mr. Leonard had funneled over $3 million in bribes to Caraway and Dallas County Schools Superintendent Ricky Sorrells. Mr. Sorrells pleaded guilty in April to conspiracy to commit honest services wire fraud. Another defendant, Slater Swartwood, who operated the shell companies used to conceal the bribes, admitted in December 2017 to conspiring to launder money.
Dallas County Schools, an agency that collected property taxes to fund its fleet of around 2,000 buses, was shuttered in November 2017, saddled with approximately $103 million in debt.
The Internal Revenue Service Criminal Investigation unit (IRS-CI) and Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Andrew Wirmani, NDTX’s Public Corruption Coordinator, Marcus Busch, and Chad Meacham prosecuted the case.