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9 April 2019
Former City of Detroit Building Authority Official and Former Executive at Adamo Group Plead Guilty to Bribery Conspiracy in Connection with the Detroit Demolition ProgramRead the Press Release
The former Field Operations Manager for the City of Detroit Building Authority overseeing the demolition program in Detroit and a former executive at a Detroit demolition firm pleaded guilty today to conspiracy to commit bribery and conspiracy to commit honest services fraud in connection with the Detroit Demolition Program, announced First Assistant U.S. Attorney Saima Mohsin and Makan Delrahim, Assistant Attorney General of the Antitrust Division of the Department of Justice.
Joining in the announcement were Christy Romero, the Special Inspector General of the Troubled Asset Relief Program (SIGTARP), and Timothy R. Slater, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation (FBI).
Aradondo Haskins, 48, pleaded guilty today before the Honorable Victoria Roberts to conspiring with a contractor to take bribes on city contracts as a public official and to commit honest services fraud by taking bribes while he was employed as an executive at Adamo Group (Adamo) between 2013 and 2016 in connection with the Blight Elimination Program (BEP) in Detroit.
Anthony Daguanno, 62, also pleaded guilty today before the Honorable Victoria Roberts to conspiring with a contractor to commit honest services fraud by taking bribes while he was employed as an executive at Adamo Group.
The United States Treasury Department created the BEP, which focused on helping communities demolish vacant houses. The program was paid for through the Hardest Hit Fund (HHF), a housing support program intended to protect home values, preserve home ownership, and promote economic growth. The City of Detroit was one of the recipients of this HHF money. Approximately $258,656,459 in Hardest Hits Funds have been allocated to the City of Detroit since October 7, 2013.
As stated during Haskins’s guilty plea, from January 2013 through April 2015, Haskins was employed as an “estimator” with Adamo. Adamo is a private, “for profit,” company which provides demolition services throughout the United States and Canada, including the City of Detroit. Haskins’s responsibilities at Adamo included assembling bid packages in response to “Requests for Proposals” (RFPs) issued by the City of Detroit. Adamo responded to the RFPs by submitting bids to the City hoping to secure demolition contracts by being the lowest bidder. In assembling the bid packages, Haskins contacted various subcontractors requesting bids for work to be included in Adamo’s submissions. “Contractor A” was one of the subcontractors who received Haskins’s invitation to bid. On several occasions, Contractor A paid Haskins money for disclosing confidential information about bids from Contractor A’s competitors. In return for these payments, Haskins disclosed confidential information about the lowest competitor bid which allowed Contractor A to submit an even lower bid, ensuring that Contractor A was awarded lucrative contracts. Haskins accepted bribes on at least eight occasions while he worked at Adamo totaling approximately $14,000.00.
According to the plea, due in large part to his experience at Adamo, Haskins was hired by the City of Detroit Building Authority (DBA) as a “Field Operations Manager” for its demolition program. As an official of the City of Detroit, Haskins was the primary point of contact for demolition contractors and he opened and read bids contractors submitted in response to RFPs. Contractor A, knowing that Haskins was still in a position to influence the demolition contract bidding process, continued to pay Haskins to use his official authority to influence the awarding of demolition related contracts to Contractor A. Haskins accepted the cash bribe payments from Contractor A in exchange for providing Contractor A confidential information about bids submitted to the DBA. With the confidential information, Contractor A was able to submit bids low enough to ensure that Contractor A was awarded City of Detroit demolition related contracts. In total, Haskins accepted approximately $11,500 in bribes from Contractor A. After his employment with the City of Detroit, Haskins accepted an additional approximately $1,000 from Contractor A for information Contractor A received while Haskins was employed with the City.
As stated during Daguanno’s guilty plea, from January 2013 through January 2019, Daguanno was employed as a “Senior Estimator” at Adamo. Daguanno’s responsibilities at Adamo included soliciting bids from subcontractors, assembling bid packages in response to RFPs issued by the City of Detroit, and communicating with subcontractors. In assembling the bid packages submitted to the City of Detroit, Daguanno communicated regularly with various subcontractors and kept track of the bids they submitted. “Contractor A” was one of the subcontractors with whom Daguanno communicated. On numerous occasions, Contractor A paid Daguanno money for disclosing confidential information about bids from Contractor A’s competitors. In return for these payments, Daguanno disclosed confidential information about the lowest competitor bid which allowed Contractor A to submit an even lower bid, ensuring that Contractor A was awarded lucrative contracts. In total, Daguanno accepted over $372,000 in bribes and kickbacks on seventy-one occasions over eight years.
Haskins and Daguanno are the first defendants to plead guilty in connection with the criminal investigation into the demolition program in the City of Detroit. The government, as of today’s date, does not anticipate charging any additional public officials.
First Assistant U.S. Attorney Saima Mohsin and Assistant Attorney General Makan Delrahim commended the outstanding work of SIGTARP and the FBI in conducting a comprehensive criminal investigation into the demolition program.
“The City of Detroit and its demolition program were entrusted with millions of taxpayer dollars to tear down abandoned houses in Detroit’s neighborhoods. The corruption of the government contracting process by these two individuals damaged the integrity of the demolition program and broke the public trust. This prosecution serves as a warning to other public officials, as well as to private sector companies working with public officials, that soliciting or accepting bribes will be punished and as a promise to the taxpaying public that such violations of the public trust will not be tolerated,” said First Assistant U.S. Attorney Saima Mohsin.
The guilty pleas today demonstrate the Antitrust Division’s commitment to prosecuting conduct that subverts the competitive process and to protecting taxpayer funds.
“When the bidding process on federally funded contracts is corrupted through bribery and fraud by public officials and contractors, it undermines the public’s confidence and eliminates the benefits of open competition,” said Assistant Attorney General Makan Delrahim. “When bribery tips the scales in favor of corrupt bidders, free market competition is harmed to the loss of taxpayers and honest bidders. The harms didn’t end there, they continue to affect cities like Detroit and states like Michigan. The Antitrust Division will continue to work with the U.S. Attorney’s Office and our investigative partners to uncover and prosecute such conduct.”
“There is no place for corruption in a federal government program like TARP’s Hardest Hit Fund,” said Special Inspector General Christy Goldsmith Romero of SIGTARP. “The convictions announced today detail how two employees of a demolition company deprived the government and taxpayers of full and open competition in the Hardest Hit Fund by providing a contractor confidential information about the lowest bid in exchange for bribes. The bribery continued when one employee later worked for the Detroit Building Authority. I thank First Assistant U.S. Attorney Saima Mohsin, and Assistant Attorney General Makan Delrahim for working with SIGTARP to fight corruption in this program.”
“Mr. Daguanno and Mr. Haskins admitted in federal court today to corrupting the bidding process while seeking contracts through a federally-funded program. Mr. Haskins' illegal behavior continued after he was hired by the City of Detroit,” said SAC Slater. “The FBI’s Detroit Area Public Corruption Task Force will continue to investigate and fight corruption by those who give illegal, preferential treatment at the expense of honest American business. I would encourage anyone with information about potential public corruption in Michigan to contact FBI Detroit's Public Corruption tipline at 313-965-2222 or our main number at 313-965-2323.”
The case is being prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen and Karen Reynolds, and DOJ Antitrust Trial Attorney Matthew Stegman.
Former Associate General Counsel of Seaworld Entertainment, Inc. Pleads Guilty to Insider TradingRead the Press Release
The former associate general counsel and assistant secretary of SeaWorld Entertainment Inc. (SeaWorld), a publicly traded amusement park corporation headquartered in Orlando, Florida, pleaded guilty today for his role in an insider-trading scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Angel M. Melendez of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI)’s New York Field Office made the announcement.
Paul B. Powers, 60, of Winter Park, Florida, pleaded guilty to one count of insider trading before U.S. Magistrate Judge Leslie R. Hoffman of the Middle District of Florida. Sentencing before U.S. District Judge Carlos E. Mendoza of the Middle District of Florida has not yet been set.
As part of his guilty plea, Powers admitted that he received material nonpublic information about SeaWorld’s financial performance through his position as assistant general counsel and assistant secretary in June, July and August 2018. Specifically, Powers admitted that beginning in June 2018, he received information that had been prepared for an upcoming meeting of SeaWorld’s Revenue Committee showing that SeaWorld anticipated both attendance and revenue to increase in the first half of 2018 by approximately eight percent as compared to the first half of 2017. Powers acknowledged that he later attended Revenue Committee meetings at which the increase in attendance and revenue was discussed, and took notes of the meetings in his capacity as SeaWorld’s assistant secretary. Powers further admitted that on Aug. 1, 2018, he received materials prepared for an upcoming Audit Committee meeting that included a draft earnings release reporting the increased revenue and attendance figures for the first half of 2018, and also reporting that one of SeaWorld’s key earnings metrics (earnings before interest, tax, depreciation and amortization, or EBITDA) had improved 59.1 percent in the first half of 2018 as compared to the first half of 2017. In addition, Powers received a draft U.S. Securities and Exchange Commission (SEC) Form 10-Q reflecting that SeaWorld had “reached an agreement in principle with the SEC Enforcement Staff to settle, without admitting or denying, charges against SeaWorld arising out of the previously disclosed SEC investigation and that SeaWorld recorded an estimated liability of $4.0 million related to this matter.” On Aug. 3, 2018, Powers attended a meeting of the Audit Committee at which the draft earnings release and SEC Form 10-Q were discussed, and took notes of the meeting in his capacity as assistant secretary, he admitted.
“Paul Powers admitted today that he used information gained through his position as a senior executive at SeaWorld to unlawfully profit from trades in hundreds of thousands of dollars’ worth of SeaWorld securities,” said Assistant Attorney General Benczkowski. “The Department of Justice and our law-enforcement partners will hold executives accountable for their criminal conduct, particularly conduct that threatens the integrity of our capital markets.”
“While employed by SeaWorld, Powers benefited from revenue information not accessible to the public, to make a quick profit, contrary to law and SeaWorld’s trading policies,” said Special Agent in Charge Melendez. “HSI’s El Dorado Task Force remains fully committed to protect the U.S. financial markets from such egregious practices.”
After Powers obtained the foregoing material nonpublic information, he liquidated all of the equities in his personal TD Ameritrade account and purchased 18,000 shares of SeaWorld stock on Aug. 2, 2018 at a cost of approximately $385,592, he admitted. Powers further admitted that when he purchased the shares, he was prohibited from trading in SeaWorld stock pursuant to SeaWorld’s trading policies. After SeaWorld announced the better-than-expected attendance, revenue and EBITDA results, the price of SeaWorld shares spiked approximately 17 percent—from $21.13 per share at the close of trading on Friday, Aug. 3, 2018, to $25.40 per share when the market reopened on Monday, Aug. 6, 2018. Powers admitted that he then capitalized on the increase in share price by selling all 18,000 shares, realizing gross proceeds of approximately $450,237 and a net profit of approximately $64,645.
HSI New York investigated the case. Deputy Chief Henry Van Dyck and Trial Attorney Mark Cipolletti of the Criminal Division’s Fraud Section are prosecuting the case. The Securities and Exchange Commission also provided assistance in this matter.
Florida Executive Sentenced to 20 Years in Prison for Orchestrating $150 Million International Ponzi SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ANTONIO CARLOS DE GODOY BUZANELI, 57, to 240 months in prison for his role in a $150 million investment fraud scheme involving Brazilian factoring. BUZANELI, who entered his guilty plea on April 19, 2018, was sentenced today before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minnesota. BUZANELI’S co-conspirators, JOSE MANUEL ORDOÑEZ, JR., 48, was sentenced on January 23, 2019, to 120 months in prison and JULIO ENRIQUE RIVERA, 62, will be sentenced on April 16, 2019.
U.S. Attorney Erica MacDonald said, “Antonio Buzaneli was the primary architect of a $150 million Ponzi scheme that targeted hundreds of victims worldwide, many of whom were elderly and vulnerable. Some victims lost their retirement savings, others lost the ability to provide a college education to their children or grandchildren. For these egregious crimes, Mr. Buzaneli will spend the next 20 years behind bars. I applaud our law enforcement partners for their steadfast efforts in seeking justice for the victims.”
“No matter how complex the scheme, the FBI is committed to stopping fraudsters like these from preying on people, especially elderly investors who may have lost their life savings in this case,” said Jill Sanborn, Special Agent in Charge of the FBI's Minneapolis Division. “We are grateful for our partners at the U.S. Attorney’s Office, the United States Postal Inspection Service and the Minnesota Commerce Fraud Bureau for thoroughly investigating this global scheme and bringing these criminals to justice; and we believe this matter further illuminates the need for citizens to be wary of those peddling these kinds of fraudulent business investments.”
“Our securities enforcement unit and the Commerce Fraud Bureau began investigating this scheme after receiving a tip about a suspicious investment opportunity being offered in Minnesota,” said Steve Kelley, Commissioner of the Minnesota Department of Commerce. “We are proud that the Commerce Fraud Bureau collaborated successfully with federal authorities, bringing to justice a far-reaching operation that deceived Minnesotans.”
According to his guilty plea, BUZANELI, along with his co-conspirators, ORDOÑEZ and RIVERA, were the principals of Providence Holdings International, Inc., a company based in Key Biscayne, Florida. BUZANELI and ORDOÑEZ became principals of Providence Financial Investments, Inc. and Providence Fixed Income Fund LLC (collectively, along with Providence Holdings International, Inc., “Providence”) in order to raise money from investors.
According to BUZANELI’s guilty plea and documents filed in court, from about 2010 until June 2016, Providence raised approximately $150 million from investors worldwide by representing that Providence would invest the money in Brazilian factoring. “Factoring” is a financial transaction in which accounts receivable are purchased at a discount. Providence’s marketing materials explained that in Brazil consumers write ten separate post-dated checks for $100 – one per month – to pay for $1,000 in retail items such as consumer electronics or groceries. The retailer then sells the post-dated checks to Providence for approximately $820, and Providence earns $180 over ten months as the checks mature. As a result, Providence claimed to make a 48 percent annual return on money invested in Brazil.
According to BUZANELI’s guilty plea and documents filed in court, Providence raised more than $64 million from U.S. investors by employing a network of brokers who sold promissory notes bearing annual interest rates between 12 percent and 24 percent. Investors were told their money would be used to factor accounts receivable in Brazil. BUZANELI, ORDOÑEZ and RIVERA provided the brokers with an Executive Memorandum to show investors that their money would be used to factor accounts receivable in Brazil. The Executive Memorandum falsely stated that funds would be used “for the sole purpose” of making loans to a Brazilian subsidiary of Providence “which will use the proceeds of the loan to acquire receivables or financial instruments such a post-dated checks and/or Duplicatas in the Brazilian Factoring Market.”
According to the defendant’s guilty plea and documents filed in court, BUZANELI and ORDOÑEZ instead used a significant amount of the investors’ funds to make Ponzi-style payments to other investors and to make commission payments to Providence’s nationwide network of brokers. BUZANELI and ORDOÑEZ also diverted investor funds to other companies they controlled, including an import/export company, a travel company, a realty company, a credit rehabilitation company, and a catering company and food truck operated by BUZANELI’S wife.
According to the defendant’s guilty plea and documents filed in court, BUZANELI and ORDOÑEZ also opened Providence offices and affiliates in locations around the world, including London, Taipei, Shanghai, Singapore, Vancouver, and Panama. For example, in 2011 and 2012, BUZANELI and ORDOÑEZ opened Providence affiliates in the Bailiwick of Guernsey and in Hong Kong, through which they raised approximately $85 million from offshore investors based on the same lies they told investors in the United States – that their money would be used to invest in Brazilian factoring. Instead, much of the investors’ money was transferred to other Providence-controlled entities around the world as well as to bank accounts controlled by BUZANELI and ORDOÑEZ, where the money was used for payments unrelated to Brazilian factoring, including to pay commissions to U.S. brokers and to make interest payments to American investors in Providence’s U.S.-based entities. As a result of the fraud scheme, Providence investors worldwide – including more than 500 victims in the United States alone – lost a total of more than $100 million.
This case was the result of an investigation conducted by the FBI, United States Postal Inspection Service, and the Minnesota Commerce Fraud Bureau. United States Attorney MacDonald would also like to thank the Securities and Exchange Commission for their assistance on this case.
Assistant U.S. Attorneys Kimberly A. Svendsen and Joseph H. Thompson prosecuted this case.
Defendant Information:
ANTONIO CARLOS DE GODOY BUZANELI, 57
Coral Gables, Fla.
Convicted:
- Conspiracy to commit mail fraud, 1 count
Sentenced:
- 240 months in prison
- $51,353,861.45 in restitution
- Three years of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Final Gang Defendant in Federal Hate Crimes Indictment Pleads Guilty in Firebombing of African-American ResidencesRead the Press Release
LOS ANGELES – The lead defendant in a federal hate crimes indictment has pleaded guilty to five charges and admitted he organized a group of street gang members who firebombed African-American residences inside the Ramona Gardens Housing Development in Boyle Heights “in order to force the African-American victims to move from the [development].”
Carlos Hernandez, also known as “Rider,” 34, pleaded guilty Monday to five felonies that carry a mandatory minimum sentence of 15 years in federal prison.
On the night of May 11, 2014, which was Mother’s Day, eight members of the Big Hazard street gang – including Hernandez, who was orchestrating the group’s activities – agreed to firebomb several apartments in Ramona Gardens because the residents were African Americans and living in the housing complex. In his plea agreement, Hernandez admitted that he organized the participants, gave each specific roles in the attacks and provided them with items to be used, including masks to conceal their identity and a hammer to break windows.
Once the gang members located their pre-selected targets, they smashed the windows of four apartments to allow for cleaner entry of the firebombs to maximize damage and threw lit Molotov cocktails into the residences, according to court documents. Three of the four targeted apartments were occupied by African-American families, including women and children, who were sleeping at the time of the unprovoked attack.
“Hernandez told the other codefendants who were present that the African-American victims were being targeted for firebombing because of their race,” according to his plea agreement, in which Hernandez admitted that he “and the codefendants knew that throwing firebombs into occupied residences after midnight created a substantial likelihood of causing serious bodily injury” to the African-American families.
“This defendant oversaw a scheme designed to send African-American residents a potentially deadly message – you are not welcome here,” said United States Attorney Nick Hanna. “As this successful prosecution clearly demonstrates, we simply will not tolerate acts of violence and hate calculated to deprive people of their civil rights.”
“The defendant and his fellow gang members targeted and attacked families sleeping in their homes because of their race,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Justice Department will continue to investigate and prosecute these violent acts of hate.”
“Many resources were devoted to the investigation of this hate crime which inexplicably targeted residents based on the color of their skin, including vulnerable children,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Any crime that violates an individual’s civil rights will not be tolerated and will be vigorously investigated by the FBI and our partners.”
Hernandez pleaded guilty to conspiracy to violate civil rights, violent crime in aid of racketeering, using fire and carrying explosives to commit another federal felony, using and possessing a firearm in a crime of violence, and violating the Fair Housing Act.
United States District Judge Christina A. Snyder is scheduled to sentence Hernandez on October 7, at which time he will face a statutory maximum penalty of life in prison.
Previously in this case, seven other defendants who were charged in 2016 pleaded guilty to federal hate crime and related offenses. All of those defendants also admitted that they participated in the firebombings because of the victims’ race and color and with the intent to force the victims to move away from the federally funded housing complex. Those seven defendants are scheduled to be sentenced later this year.
The investigation into the firebombing was conducted by agents and detectives with the Federal Bureau of Investigation; the Los Angeles Police Department; the Los Angeles Fire Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section; Justice Department Trial Attorney Julia Gegenheimer of the Civil Rights Division’s Criminal Section; and Assistant United States Attorney MiRi Song of the General Crimes Section.
Final Defendant in East L.A. Street Gang Pleads Guilty to Federal Charges Stemming from Firebombing of African-American ResidencesRead the Press Release
The lead defendant in a federal hate crimes indictment pleaded guilty yesterday to five charges and admitted he organized a group of street gang members who firebombed African-American residences inside the Ramona Gardens Housing Development “in order to force the African-American victims to move from the [development].”
Carlos Hernandez, also known as “Rider,” 34, pleaded guilty yesterday to five felonies that carry a mandatory minimum sentence of 15 years in federal prison.
“The defendant and his fellow gang members targeted and attacked families sleeping in their homes because of their race,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Justice Department will continue to investigate and prosecute these violent acts of hate.”
“This defendant oversaw a scheme designed to send African-American residents a potentially deadly message – you are not welcome here,” said United States Attorney Nick Hanna. “As this successful prosecution clearly demonstrates, we simply will not tolerate acts of violence and hate calculated to deprive people of their civil rights.”
“Many resources were devoted to the investigation of this hate crime which inexplicably targeted residents based on the color of their skin, including vulnerable children,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Any crime that violates an individual’s civil rights will not be tolerated and will be vigorously investigated by the FBI and our partners.”
On the night of Mother’s Day, May 11, 2014, eight members of the Big Hazard street gang – including Hernandez, who was orchestrating the group’s activities – agreed to firebomb several apartments in Ramona Gardens because the residents were African Americans and living in the housing complex. In his plea agreement, Hernandez admitted that he organized the participants, gave each specific roles in the attacks and provided them with items to be used, including masks to conceal their identity and a hammer to break windows.
Once the gang members located their pre-selected targets, they smashed the windows of four apartments to allow for cleaner entry of the firebombs to maximize damage and threw lit Molotov cocktails into the residences, according to court documents. Three of the four targeted apartments were occupied by African-American families, including women and children, who were sleeping at the time of the unprovoked attack.
“Hernandez told the other codefendants who were present that the African-American victims were being targeted for firebombing because of their race,” according to his plea agreement, in which Hernandez admitted that he “and the codefendants knew that throwing firebombs into occupied residences after midnight created a substantial likelihood of causing serious bodily injury” to the African-American families.
Hernandez pleaded guilty to conspiracy to violate civil rights, violent crime in aid of racketeering, using fire and carrying explosives to commit another federal felony, using and possessing a firearm in a crime of violence, and violating the Fair Housing Act.
United States District Judge Christina A. Snyder is scheduled to sentence Hernandez on Oct. 7 where he will face a statutory maximum penalty of life in prison.
Previously in this case, the other seven defendants who were charged in 2016 pleaded guilty to federal hate crime and related offenses. All of those defendants also admitted that they participated in the firebombings because of the victims’ race and color and with the intent to force the victims to move away from the federally funded housing complex in the Boyle Heights section of Los Angeles. Those seven defendants are scheduled to be sentenced later this year.
The investigation into the firebombing was conducted by agents and detectives with the Federal Bureau of Investigation; the Los Angeles Police Department; the Los Angeles Fire Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section; Justice Department Trial Attorney Julia Gegenheimer of the Civil Rights Division’s Criminal Section; and Assistant United States Attorney MiRi Song of the General Crimes Section.
For more information about DOJ’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to DOJ hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
Felon Sentenced to Prison for Firearm and Obstruction of Justice ChargesRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to more than four and a half years in prison for being a felon in possession of a firearm and conspiracy to obstruct justice.
According to court documents, in April 2018, Richmond Police Officers performed a traffic stop on the vehicle of Keith Gasque, 26, for suspicion of illegal tint. During the stop, officers learned that Gasque had a suspended license and asked him to step out of the vehicle while the officers continued to ask him questions. Gasque then agreed to allow the officers to perform a protective sweep of his vehicle, leading to the officers finding a loaded magazine in the center console. When officers attempted to place him in handcuffs, Gasque fled on foot, circled back to vehicle and again fled in the vehicle, nearly striking one of the officers. After officers eventually apprehended Gasque and fully searched the vehicle, they found two loaded firearms in a backpack belonging to Gasque, and learned that the original magazine found in the center console did not fit either of the two firearms. Further investigation led law enforcement to learn that Gasque had recruited others to straw purchase the firearms on his behalf.
After Gasque was charged and detained in the Richmond City Jail, Gasque and his mother, Regina Gasque, agreed to recruit some of Gaque’s friends to falsely take responsibility for having owned the firearms officers found in Gasque’s vehicle. One of those friends, Trammel Lewis, is also one of the individuals who straw purchased one of the found firearms. During phone calls that Gasque made while in jail, Gasque spoke directly with Lewis about the false statements that Gasque wanted Lewis to make to law enforcement, including what Lewis was supposed to convey to a federal Grand Jury. Both Regina Gasque and Lewis are co-defendants in this case, and are scheduled to be sentenced later this month.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Stephen E. Anthony prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of theDistrict Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-135.
Felon Sentenced for Heroin Trafficking, Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man still on supervised release from a prior felony conviction was sentenced in federal court today for possessing heroin to distribute and illegally possessing a firearm.
Vernon Deandre Jordan, 34, was sentenced by U.S. District Judge Stephen R. Bough to nine years in federal prison without parole. Today’s sentence includes a two-year term for violating his supervised release in an unrelated case.
On Jan. 31, 2019, Jordan pleaded guilty to possessing heroin to distribute and using a firearm in furtherance of a drug-trafficking crime. Jordan also pleaded guilty to violating the terms of his supervised release by committing those offenses. In that earlier case, Jordan pleaded guilty on Aug. 11, 2015, to being a felon in possession of a firearm and was sentenced to two years in federal prison, followed by two years of supervised release.
Probation officers conducted a search of Jordan’s residence on Nov. 15, 2017, based upon Jordan’s conditions of supervised release. Jordan asked for a coat from his closet, and one of the officers searched the coat before handing it to him. Inside the coat pockets, an officer found a handcuff key, approximately 25.2 grams of heroin, and $888.
Inside the top drawer of a nightstand, officers also found a loaded Glock .45-caliber semi-automatic pistol, a box that contained 47 rounds of 9mm ammunition, and approximately 50 grams of heroin separated into two plastic baggies.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Probation Office and the Boone County, Mo., Sheriff’s Department.
Federal Investigation of Portland Drug Trafficking Organization Reveals Black Market Peso Exchange SchemeRead the Press Release
PORTLAND, Ore.—Esteban Guillen Ramirez, 53, of Guadalajara, Jalisco, Mexico, was sentenced today to one year in federal prison and three years’ supervised release for his role in a complex black market peso exchange money laundering scheme. The scheme was uncovered in 2015 following a lengthy investigation by the U.S. Drug Enforcement Administration (DEA) into a Portland-based heroin trafficking organization.
In February 2015, the DEA executed multiple search warrants throughout the Portland and Vancouver, Washington metropolitan area following a long-term heroin trafficking investigation. Agents arrested over twenty drug trafficking defendants, seized multiple kilos of heroin and seized over $400,000 in bulk cash. At one search location, agents seized evidence of bank deposit slips and deposit instructions, in which heroin traffickers deposited drug proceeds into multiple wholesale businesses in the Los Angeles Fashion District.
Agents began a money laundering investigation. Bank records showed that the majority of cash deposits made by Portland heroin traffickers into the Los Angeles wholesale business bank accounts were systematically structured to avoid detection by the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
In November 2015, agents executed 14 federal search warrants in the Los Angeles Fashion District. At four separate wholesale businesses, agents seized financial records identifying Stefano Fashions as the beneficiary of the cash deposits made by the Portland heroin traffickers. Stefano Fashions, owned by Guillen Ramirez, is a successful Guadalajara business engaged in the sale of women’s accessories and cosmetics. Financial investigators found evidence of a high volume of structured cash deposits and large quantities of bulk cash delivered to the wholesale businesses on behalf of Stefano Fashions. While this financial activity was highly unusual for a U.S. wholesale business, it was a telltale sign the Los Angeles Fashion District businesses and Stefano Fashions were participating in a black market peso exchange scheme to launder the drug proceeds of a Mexican drug trafficking organization.
A black market peso exchange is a trade based money laundering scheme commonly used by Mexican drug trafficking organizations to obtain pesos in exchange for U.S. dollars acquired from narcotics sales in the U.S. This complex money laundering scheme involves money derived from the sale of drugs in the United States that is laundered through wholesale business in the Los Angeles Fashion District in order to repatriate the drug proceeds back to Mexican drug trafficking organizations.
In July 2018, federal agents arrested Guillen Ramirez in Las Vegas, Nevada. Guillen Ramirez pleaded guilty to one count of conspiracy to commit money laundering on December 13, 2018. Five Los Angeles wholesale business owners and one former CEO pled guilty to money laundering, tax and structuring related crimes. Each of the business owners that has been sentenced was required to a serve prison term and more than $2 million has been seized, forfeited or applied to restitution.
Following this money laundering investigation, the national bank used by the drug traffickers to deposit proceeds, changed its policy governing third party cash deposits. Prior to this investigation, this national bank allowed third parties to make cash deposits under $10,000 into personal bank accounts without providing identification. The bank now requires individuals making cash deposits into third party accounts to provide identification and be an authorized user of the account.
This case was the result of a joint investigation by the DEA, Homeland Security Investigations (HSI), IRS-Criminal Investigation, and the U.S. Marshals Service. The money laundering prosecution was led by Steven T. Mygrant, Assistant U.S. Attorney for the District of Oregon.
This case was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the department’s strategy for reducing the availability of drugs in the U.S. In 2018, the case was recognized nationally by OCDETF with the Outstanding Investigation Award for the Financial Investigation of an Opioid Network.
OCDETF was established in 1982 to mount a comprehensive attack on drug trafficking by disrupting and dismantling major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in coordination with state and local law enforcement.
Federal Indictments and Law Enforcement Actions in One of the Largest Health Care Fraud Schemes Involving Telemedicine and Durable Medical Equipment Marketing Executives Results in Charges Against 24 Individuals Responsible for over $1.2 Billion in LossesRead the Press Release
WASHINGTON – One of the largest health care fraud schemes investigated by the FBI and the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and prosecuted by the Department of Justice resulted in charges against 24 defendants, including the CEOs, COOs and others associated with five telemedicine companies, the owners of dozens of durable medical equipment (DME) companies and three licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $1.2 billion in loss, as well as the execution of over 80 search warrants in 17 federal districts. In addition, the Center for Medicare Services, Center for Program Integrity (CMS/CPI) announced today that it took adverse administrative action against 130 DME companies that had submitted over $1.7 billion in claims and were paid over $900 million.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Sherri A. Lydon of the District of South Carolina, U.S. Attorney Craig Carpenito of the District of New Jersey, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division, Deputy Inspector General for Investigations Gary Cantrell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chief Don Fort of the IRS Criminal Investigation (CI) and Deputy Administrator and Director of CPI Alec Alexander of the CMS/CPI made the announcement.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the Districts of South Carolina, New Jersey and the Middle District of Florida. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, IRS-CI and other federal law enforcement agencies participated in the operation.
The charges announced today target an alleged scheme involving the payment of illegal kickbacks and bribes by DME companies in exchange for the referral of Medicare beneficiaries by medical professionals working with fraudulent telemedicine companies for back, shoulder, wrist and knee braces that are medically unnecessary. Certain of the defendants allegedly controlled an international telemarketing network that lured over hundreds of thousands of elderly and/or disabled patients into a criminal scheme that crossed borders, involving call centers in the Philippines and throughout Latin America. The defendants allegedly paid doctors to prescribe DME either without any patient interaction or with only a brief telephonic conversation with patients they had never met or seen. The proceeds of the fraudulent scheme were allegedly laundered through international shell corporations and used to purchase exotic automobiles, yachts and luxury real estate in the United States and abroad.
“These defendants — who range from corporate executives to medical professionals — allegedly participated in an expansive and sophisticated fraud to exploit telemedicine technology meant for patients otherwise unable to access health care,” said Assistant Attorney General Benczkowski. “This Department of Justice will not tolerate medical professionals and executives who look to line their pockets by cheating our health care programs. I commend the Criminal Division prosecutors and our partners from U.S. Attorney’s Offices and law enforcement agencies across the country for their unrelenting efforts to stop this alleged fraud before more money was stolen from American taxpayers.”
“Simply put, the law applies equally to all in South Carolina,” said U.S. Attorney Sherri Lydon. “The same spoon that serves indictments on drug dealers, felons in possession of firearms, and corrupt officials will also feed those companies and individuals who engage in Medicare fraud. White collar crime is not victimless. All taxpayers will endure the rising cost of health care premiums and out-of-pocket costs as a result of fraud on our Medicare system. I am honored to stand with our partners at the FBI, HHS-OIG, and IRS-CI, who led this outstanding and nationally significant investigation from right here in South Carolina.”
“The indictments we are unsealing today charge the defendants with running a complex, multilayered scheme to defraud our Medicare system and avoid detection by government regulators,” said U.S. Attorney Craig Carpenito. “The defendants took advantage of unwitting patients who were simply trying to get relief from their health concerns. Instead, the defendants preyed upon their weakened state and pushed millions of dollars’ worth of unnecessary medical devices, which Medicare paid for, and then set up an elaborate system for laundering their ill-gotten proceeds. We are proud to join our law enforcement partners in New Jersey and around the country to put a stop to this unscrupulous criminal activity.”
“Protecting the integrity of America’s health care programs is necessary to ensure that our citizens receive the care they have paid for and deserve,” said U.S. Attorney Chapa Lopez. “The mammoth coordination and cooperation demonstrated among the various offices, districts, and agencies involved in this case leaves no doubt. We will leverage the full weight of our resources to combat fraud and abuse, wherever it is found.”
“Today, one of the largest health care fraud schemes in U.S. history came to an end thanks to close collaboration and coordination between the FBI and partners including HHS-OIG and IRS-CI,” said FBI Assistant Director Robert Johnson. “Health care fraud causes billions of dollars in losses, it deprives real patients of the critical health care services they need, and it can endanger the lives of real patients so individuals like those arrested today can profit from their criminal activity. Through today’s coordinated national effort, we put an end to this egregious and costly health care fraud scheme, and the public can rest assured the FBI will continue to make health care fraud investigations a top priority.”
“Our law enforcement officers are focused on preventing and uprooting health care fraud schemes like those alleged today,” said Deputy Inspector General for Investigations Gary Cantrell. “These schemes divert money from taxpayer-funded federal health care programs into the hands of criminals. Working closely with our law enforcement partners, our agency will continue to investigate and disrupt attempts to undermine Medicare and target beneficiaries.”
“The breadth of this nationwide conspiracy should be frightening to all who rely on some form of healthcare,” said IRS-CI Chief Don Fort. “The conspiracy described in this indictment was not perpetrated by one individual. Rather, it details broad corruption, massive amounts of greed, and systemic flaws in our healthcare system that were exploited by the defendants. We all suffer when schemes like this go undiscovered and I’m proud of the work our agents did in working with our partners to uncover this complex scheme.”
“The Centers for Medicare & Medicaid Services (CMS) Center for Program Integrity (CPI) is proud to work very closely everyday with our law enforcement partners to stop exploitation of vulnerable patients and misuse of taxpayer dollars,” said Deputy Administrator and CPI Director Alec Alexander. “In this case CMS has taken swift administrative action and has suspended payments to 130 distinct providers thereby likely preventing billions of additional dollars in losses. CMS remains committed to protecting the millions of beneficiaries we are honored to serve and to preventing fraud of all sorts in the Medicare and Medicaid programs.”
According to allegations in court documents, some of the defendants obtained patients for the scheme by using an international call center that advertised to Medicare beneficiaries and “up-sold” the beneficiaries to get them to accept numerous “free or low-cost” DME braces, regardless of medical necessity. The international call center allegedly paid illegal kickbacks and bribes to telemedicine companies to obtain DME orders for these Medicare beneficiaries. The telemedicine companies then allegedly paid physicians to write medically unnecessary DME orders. Finally, the international call center sold the DME orders that it obtained from the telemedicine companies to DME companies, which fraudulently billed Medicare. Collectively, the CEOs, COOs, executives, business owners and medical professionals involved in the conspiracy are accused of causing over $1 billion in loss.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Amongst those charged by Strike Force attorneys include:
In the District of New Jersey, charges were brought against Creaghan Harry, 51, of Highland Beach, Florida; Lester Stockett, 51, of Deefield Beach, Florida; and Elliot Loewenstern, 56, of Boca Raton, Florida; the owner, CEO and VP of marketing, respectively, of purported call centers and telemedicine companies, for their alleged participation in a $454 million illegal health care kickback and international money laundering scheme related to the solicitation of illegal kickbacks and bribes in exchange for the referral of DME orders to DME providers. In addition, Joseph DeCoroso, M.D., 62, of Toms River, New Jersey, was charged in a $13 million conspiracy to commit health care fraud and separate charges of health care fraud for writing medically unnecessary orders for DME, in many instances without ever speaking to the patients, while working for two telemedicine companies. The cases are being prosecuted by Fraud Section Acting Assistant Chief Jacob Foster and Trial Attorney Darren Halverson.
In the Middle District of Florida, charges were brought against Willie McNeal, 42, of Spring Hill, Florida, the owner and CEO of two purported telemedicine companies, for his alleged participation in a $250 million scheme related to the solicitation of illegal kickbacks and bribes in exchange for the referral of DME orders to DME providers. The case is being prosecuted by Fraud Section Acting Assistant Chief Jacob Foster and Trial Attorneys John Michelich, Catherine Wagner and Sara Clingan.
In the Northern District of Texas, charges were brought against Leah Hagen, 48, and Michael Hagen, 51, of Dalworthington Gardens, Texas, owners and operators of two DME companies, for their alleged participation in a $17 million illegal health care kickback scheme related to the payment of kickbacks in exchange for the referral of medically unnecessary DME orders. The case is being prosecuted by Fraud Section Trial Attorneys Brynn Schiess and Carlos Lopez.
In the Western District of Texas, Christopher O’Hara, 54, of Kingsbury, Texas, the owner of a purported telemedicine company, was charged in an $40 million scheme related to the alleged solicitation of illegal kickbacks and bribes in exchange for the referral of DME orders to DME providers. The case is being prosecuted by Fraud Section Trial Attorney Kevin Lowell.
In the Eastern District of Pennsylvania, Randy Swackhammer, M.D., 60, of Goldsboro, North Carolina, was charged for an alleged $5 million conspiracy to commit health care fraud that involved writing medically unnecessary orders for DME while working for a telemedicine company, in many instances with only a brief telephonic conversation with the patients. The case is being prosecuted by Fraud Section Trial Attorney Adam Yoffie.
In the Central District of California, charges were brought against Darin Flashberg, 41, of Glendora, California, and Najib Jabbour, 47, of Glendora, California, owners of seven DME companies, for their alleged participation in a $34 million scheme related to their payment of kickbacks and bribes in exchange for medically unnecessary DME orders. The case is being prosecuted by Fraud Section Trial Attorney Robyn Pullio.
In addition to the Strike Force prosecutions, other enforcement actions were taken, including the execution of search warrants to support related investigative efforts in seven additional U.S. Attorney’s Offices to include in various investigations conducted by the District of New Jersey, District of South Carolina, Southern District of California, District of Nebraska, Middle District of Florida, Eastern District of Missouri and Western District of Washington.
In the District of South Carolina, charges were brought against Andrew Chmiel, 43, of Mt. Pleasant, South Carolina, owner of over a dozen companies involved in the scheme, for his alleged participation in a $200 million scheme related to the payment of kickbacks and bribes in exchange for medically unnecessary DME orders. The cases are being prosecuted by Assistant U.S. Attorneys Jim May and Will Lewis of the District of South Carolina.
In the District of New Jersey, charges were brought against Neal Williamsky 59, of Marlboro, New Jersey, and Nadia Levit, 39, of Englishtown, New Jersey, owners of approximately 25 DME companies, for their alleged participation in a $150 million scheme related to the payment of kickbacks and bribes in exchange for medically unnecessary DME orders. Albert Davydov, 26, of Rego Park, New York, was also charged for his alleged participation in a $35 million scheme related to the payment of kickbacks and bribes in exchange for medically unnecessary DME orders. The cases are being prosecuted by Assistant U.S. Attorneys Brian Urbano and Stephen Ferketic of the District of New Jersey.
In the Middle District of Florida, search and seizure warrants are being executed at 20 different business locations, including numerous DME companies and a fraudulent telemarketing company. The search and seizures are being executed by over 100 law enforcement officers from six federal agencies, including HHS-OIG, FBI, IRS-CI, VA-OIG, SSA-OIG, and USPS-OIG. In addition to the 20 search warrants, millions of dollars and other assets tied to the conspiracy are being seized and/or frozen, including through a civil injunction naming 13 defendants as authorized under 18 U.S.C. § 1345.
The cases announced today are being prosecuted and investigated by U.S. Attorney’s Offices nationwide, along with MFSF teams from the Criminal Division’s Fraud Section and from the U.S. Attorney’s Offices in the District of New Jersey, District of South Carolina, Southern District of California, District of Nebraska, Middle District of Florida, Eastern District of Missouri and Western District of Washington; and agents from the FBI, HHS-OIG, IRS-CI and other federal law enforcement agencies.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine and DME marketing schemes – including Video Doctor USA, AffordADoc, Web Doctors Plus, Integrated Support Plus and First Care MD – should call to report this conduct to the FBI hotline at 1-800-CALL-FBI.
Additional documents related to this announcement will shortly be available here: https://www.justice.gov/opa/documents-and-resources-april-9-2019-press-release-health-care-fraud.
Federal Indictments & Law Enforcement Actions in One of the Largest Health Care Fraud Schemes Involving Telemedicine and Durable Medical Equipment Marketing Executives Results in Charges Against 24 Individuals Responsible for over $1.2 Billion in LossesRead the Press Release
One of the largest health care fraud schemes investigated by the FBI and the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and prosecuted by the Department of Justice resulted in charges against 24 defendants, including the CEOs, COOs and others associated with five telemedicine companies, the owners of dozens of durable medical equipment (DME) companies and three licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $1.2 billion in loss, as well as the execution of over 80 search warrants in 17 federal districts. In addition, the Center for Medicare Services, Center for Program Integrity (CMS/CPI) announced today that it took adverse administrative action against 130 DME companies that had submitted over $1.7 billion in claims and were paid over $900 million.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Sherri A. Lydon of the District of South Carolina, U.S. Attorney Craig Carpenito of the District of New Jersey, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division, Deputy Inspector General for Investigations Gary Cantrell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chief Don Fort of the IRS Criminal Investigation (CI) and Deputy Administrator and Director of CPI Alec Alexander of the CMS/CPI made the announcement.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the Districts of South Carolina, New Jersey and the Middle District of Florida. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, IRS-CI and other federal law enforcement agencies participated in the operation.
The charges announced today target an alleged scheme involving the payment of illegal kickbacks and bribes by DME companies in exchange for the referral of Medicare beneficiaries by medical professionals working with fraudulent telemedicine companies for back, shoulder, wrist and knee braces that are medically unnecessary. Some of the defendants allegedly controlled an international telemarketing network that lured over hundreds of thousands of elderly and/or disabled patients into a criminal scheme that crossed borders, involving call centers in the Philippines and throughout Latin America. The defendants allegedly paid doctors to prescribe DME either without any patient interaction or with only a brief telephonic conversation with patients they had never met or seen. The proceeds of the fraudulent scheme were allegedly laundered through international shell corporations and used to purchase exotic automobiles, yachts and luxury real estate in the United States and abroad.
“These defendants — who range from corporate executives to medical professionals — allegedly participated in an expansive and sophisticated fraud to exploit telemedicine technology meant for patients otherwise unable to access health care,” said Assistant Attorney General Benczkowski. “This Department of Justice will not tolerate medical professionals and executives who look to line their pockets by cheating our health care programs. I commend the Criminal Division prosecutors and our partners from U.S. Attorney’s Offices and law enforcement agencies across the country for their unrelenting efforts to stop this alleged fraud before more money was stolen from American taxpayers.”
“Simply put, the law applies equally to all in South Carolina,” said U.S. Attorney Sherri Lydon. “The same spoon that serves indictments on drug dealers, felons in possession of firearms, and corrupt officials will also feed those companies and individuals who engage in Medicare fraud. White collar crime is not victimless. All taxpayers will endure the rising cost of health care premiums and out-of-pocket costs as a result of fraud on our Medicare system. I am honored to stand with our partners at the FBI, HHS-OIG, and IRS-CI, who led this outstanding and nationally significant investigation from right here in South Carolina.”
“The indictments we are unsealing today charge the defendants with running a complex, multilayered scheme to defraud our Medicare system and avoid detection by government regulators,” said U.S. Attorney Craig Carpenito. “The defendants took advantage of unwitting patients who were simply trying to get relief from their health concerns. Instead, the defendants preyed upon their weakened state and pushed millions of dollars’ worth of unnecessary medical devices, which Medicare paid for, and then set up an elaborate system for laundering their ill-gotten proceeds. We are proud to join our law enforcement partners in New Jersey and around the country to put a stop to this unscrupulous criminal activity.”
“Protecting the integrity of America’s health care programs is necessary to ensure that our citizens receive the care they have paid for and deserve,” said U.S. Attorney Chapa Lopez. “The mammoth coordination and cooperation demonstrated among the various offices, districts, and agencies involved in this case leaves no doubt. We will leverage the full weight of our resources to combat fraud and abuse, wherever it is found.”
“Today, one of the largest health care fraud schemes in U.S. history came to an end thanks to close collaboration and coordination between the FBI and partners including HHS-OIG and IRS-CI,” said FBI Assistant Director Robert Johnson. “Health care fraud causes billions of dollars in losses, it deprives real patients of the critical health care services they need, and it can endanger the lives of real patients so individuals like those arrested today can profit from their criminal activity. Through today’s coordinated national effort, we put an end to this egregious and costly health care fraud scheme, and the public can rest assured the FBI will continue to make health care fraud investigations a top priority.”
“Our law enforcement officers are focused on preventing and uprooting health care fraud schemes like those alleged today,” said Deputy Inspector General for Investigations Gary Cantrell. “These schemes divert money from taxpayer-funded federal health care programs into the hands of criminals. Working closely with our law enforcement partners, our agency will continue to investigate and disrupt attempts to undermine Medicare and target beneficiaries.”
“The breadth of this nationwide conspiracy should be frightening to all who rely on some form of healthcare,” said IRS-CI Chief Don Fort. “The conspiracy described in this indictment was not perpetrated by one individual. Rather, it details broad corruption, massive amounts of greed, and systemic flaws in our healthcare system that were exploited by the defendants. We all suffer when schemes like this go undiscovered and I’m proud of the work our agents did in working with our partners to uncover this complex scheme.”
“The Centers for Medicare & Medicaid Services (CMS) Center for Program Integrity (CPI) is proud to work very closely everyday with our law enforcement partners to stop exploitation of vulnerable patients and misuse of taxpayer dollars,” said Deputy Administrator and CPI Director Alec Alexander. “In this case CMS has taken swift administrative action and has suspended payments to 130 distinct providers thereby likely preventing billions of additional dollars in losses. CMS remains committed to protecting the millions of beneficiaries we are honored to serve and to preventing fraud of all sorts in the Medicare and Medicaid programs.”
According to allegations in court documents, some of the defendants obtained patients for the scheme by using an international call center that advertised to Medicare beneficiaries and “up-sold” the beneficiaries to get them to accept numerous “free or low-cost” DME braces, regardless of medical necessity. The international call center allegedly paid illegal kickbacks and bribes to telemedicine companies to obtain DME orders for these Medicare beneficiaries. The telemedicine companies then allegedly paid physicians to write medically unnecessary DME orders. Finally, the international call center sold the DME orders that it obtained from the telemedicine companies to DME companies, which fraudulently billed Medicare. Collectively, the CEOs, COOs, executives, business owners and medical professionals involved in the conspiracy are accused of causing over $1 billion in loss.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
*********
Amongst those charged by Strike Force attorneys include:
In the District of New Jersey, charges were brought against Creaghan Harry, 51, of Highland Beach, Florida; Lester Stockett, 51, of Deefield Beach, Florida; and Elliot Loewenstern, 56, of Boca Raton, Florida; the owner, CEO and VP of marketing, respectively, of purported call centers and telemedicine companies, for their alleged participation in a $424 million illegal health care kickback and international money laundering scheme related to the solicitation of illegal kickbacks and bribes in exchange for the referral of DME orders to DME providers. In addition, Joseph DeCorso, M.D., 62, of Toms River, New Jersey, was charged in a $13 million conspiracy to commit health care fraud and separate charges of health care fraud for writing medically unnecessary orders for DME, in many instances without ever speaking to the patients, while working for two telemedicine companies. The cases are being prosecuted by Fraud Section Acting Assistant Chief Jacob Foster and Trial Attorney Darren Halverson.
In the Middle District of Florida, charges were brought against Willie McNeal, 42, of Spring Hill, Florida, the owner and CEO of two purported telemedicine companies, for his alleged participation in a $250 million scheme related to the solicitation of illegal kickbacks and bribes in exchange for the referral of DME orders to DME providers. The case is being prosecuted by Fraud Section Acting Assistant Chief Jacob Foster and Trial Attorneys John Michelich, Catherine Wagner and Sara Clingan.
In the Northern District of Texas, charges were brought against Leah Hagen, 48, and Michael Hagen, 51, of Dalworthington Gardens, Texas, owners and operators of two DME companies, for their alleged participation in a $17 million illegal health care kickback scheme related to the payment of kickbacks in exchange for the referral of medically unnecessary DME orders. The case is being prosecuted by Fraud Section Trial Attorneys Brynn Schiess and Carlos Lopez.
In the Western District of Texas, Christopher O’Hara, 54, of Kingsbury, Texas, the owner of a purported telemedicine company, was charged in an $40 million scheme related to the alleged solicitation of illegal kickbacks and bribes in exchange for the referral of DME orders to DME providers. The case is being prosecuted by Fraud Section Trial Attorney Kevin Lowell.
In the Eastern District of Pennsylvania, Randy Swackhammer, M.D., 60, of Goldsboro, North Carolina, was charged for an alleged $5 million conspiracy to commit health care fraud that involved writing medically unnecessary orders for DME while working for a telemedicine company, in many instances with only a brief telephonic conversation with the patients. The case is being prosecuted by Fraud Section Trial Attorney Adam Yoffie.
In the Central District of California, charges were brought against Darin Flashberg, 41, of Glendora, California, and Najib Jabbour, 47, of Glendora, California, owners of seven DME companies, for their alleged participation in a $34 million scheme related to their payment of kickbacks and bribes in exchange for medically unnecessary DME orders. The case is being prosecuted by Fraud Section Trial Attorney Robyn Pullio.
*********
In addition to the Strike Force prosecutions, other enforcement actions were taken, including the execution of search warrants to support related investigative efforts in seven additional U.S. Attorney’s Offices to include in various investigations conducted by the District of New Jersey, District of South Carolina, Southern District of California, District of Nebraska, Middle District of Florida, Eastern District of Missouri and Western District of Washington.
In the District of South Carolina, charges were brought against Andrew Chmiel, 43, of Mt. Pleasant, South Carolina, owner of over a dozen companies involved in the scheme, for his alleged participation in a $200 million scheme related to the payment of kickbacks and bribes in exchange for medically unnecessary DME orders. The cases are being prosecuted by Assistant U.S. Attorneys Jim May and Will Lewis of the District of South Carolina.
In the District of New Jersey, charges were brought against Neal Williamsky 59, of Marlboro, New Jersey, and Nadia Levit, 39, of Englishtown, New Jersey, owners of approximately 25 DME companies, for their alleged participation in a $150 million scheme related to the payment of kickbacks and bribes in exchange for medically unnecessary DME orders. Albert Davydov, 26, of Rego Park, New York, was also charged for his alleged participation in a $35 million scheme related to the payment of kickbacks and bribes in exchange for medically unnecessary DME orders. The cases are being prosecuted by Assistant U.S. Attorneys Brian Urbano and Stephen Ferketic of the District of New Jersey.
In the Middle District of Florida, search and seizure warrants are being executed at 20 different business locations, including numerous DME companies and a fraudulent telemarketing company. The search and seizures are being executed by over 100 law-enforcement officers from six federal agencies, including HHS-OIG, FBI, IRS-CI, VA-OIG, SSA-OIG, and USPS-OIG. In addition to the 20 search warrants, millions of dollars and other assets tied to the conspiracy are being seized and/or frozen, including through a civil injunction naming 13 defendants as authorized under 18 U.S.C. § 1345.
The cases announced today are being prosecuted and investigated by U.S. Attorney’s Offices nationwide, along with MFSF teams from the Criminal Division’s Fraud Section and from the U.S. Attorney’s Offices in the District of New Jersey, District of South Carolina, Southern District of California, District of Nebraska, Middle District of Florida, Eastern District of Missouri and Western District of Washington; and agents from the FBI, HHS-OIG, IRS-CI and other federal law enforcement agencies.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine and DME marketing schemes – including Video Doctor USA, AffordADoc, Web Doctors Plus, Integrated Support Plus and First Care MD – should call to report this conduct to the FBI hotline at 1-800-CALL-FBI.
Additional documents related to this announcement will shortly be available here: https://www.justice.gov/opa/documents-and-resources-april-9-2019-press-release-health-care-fraud.
Federal Grand Jury Indicts Sylacauga Man for Attempted Child EnticementRead the Press Release
BIRMINGHAM - A federal grand jury in March indicted a Sylacauga man for attempted coercion and enticement of a minor announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
JERRY WAYNE HAMILTON, 49, is charged in an indictment filed in the U.S. District Court with attempting to coerce and entice an alleged 15 year old girl to meet him for sexual acts. When Hamilton drove to meet the minor child for a sexual encounter, he was instead met by law enforcement.
“Our office along with our federal and state law enforcement partners stand committed to see child predators brought to justice,” Town said. “The tolerance for those who prey on innocent children is none.”
The penalty for attempted coercion and enticement of a minor is 10 years to life in prison.
FBI Birmingham Division Child Exploitation Task Force along with Mountain Brook Police Department investigated the case. Assistant U.S. Attorney R. Leann White is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Federal Grand Jury Indicts Birmingham College Student on Child Pornography ChargesRead the Press Release
BIRMINGHAM - A federal grand jury in March indicted a Birmingham college student for Advertisement, Sale, and Possession of Child Pornography announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
A five-count indictment filed in the U.S. District Court, charges DAVID DRAKE, 19, with advertising child pornography on the internet and selling those images and videos on the internet. Drake is charged with 1-count of advertisement of child pornography and 2-counts of sale of child pornography. Drake is also charged with 2 counts of possession of child pornography.
“Our law enforcement will continue to vigilantly monitor the internet using all available resources available to uncover child exploitation and abuse,” Town said. “These predators need to know that they will be arrested, prosecuted and once convicted, sentenced to time in a federal prison where there is no possibility for parole.”
The maximum penalty for advertisement of child pornography is a maximum of 30 years in prison.
The maximum penalty for the sale of child pornography is 20 years in prison.
The maximum penalty for possession of child pornography is 20 years in prison since the collection of images and videos include children under the age of 12 years.
FBI Birmingham Division Child Exploitation Task Force along with ALEA investigated the case. Assistant U.S. Attorney R. Leann White is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Father of a Huntsville Elementary School Shooting Victim SentencedRead the Press Release
BIRMINGHAM – A federal judge on Monday sentenced the father of a Huntsville elementary school shooting victim, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Judge Karen O. Bowdre sentenced LETROY COLE, JR, 41 to 26 months in prison and three years of supervised release.
Letroy Cole Jr., 41, pled guilty in November to the federal charge of being a convicted felon in possession of firearm. Cole possessed a Kel Tec model P-32 .32-caliber semi-automatic pistol. Cole’s son, a second-grader, found the gun hidden in their home and took it to school to show it to a friend. On September 17, 2018, the second-grader accidently shot himself while showing it to a friend, in a restroom at Blossomwood Elementary school.
“Felons in unlawful possession of firearms are not only a threat to all of us when those weapons are illegally in their hands, but made worse when those weapons get into the hands of children”, Town said. “A child was shot and injured with the handgun that Cole illegally possessed. This situation could have been much worse. We are thankful for the efforts of the Madison County District Attorney, Huntsville Police Department, and the ATF in once again assuring the public with this federal prosecution that illegal gun crimes are taken seriously.”
“ATF Crime Gun Intelligence Centers are the driving force to reduce the potential for violent crime and disrupting the shooting cycle that plagues our neighborhoods, to include firearms recovered in the school systems.” Watson said.
ATF investigated the case, in partnership with the Huntsville Police Department and the Madison County District Attorney’s Office. Assistant U.S. Attorney Robert J. Becher Sr. prosecuted the case.
Fayetteville Resident Sentenced to 15 Years in Prison for Methamphetamine Trafficking in Northwest ArkansasRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas; announced that on yesterday Martin Castillo-Tovar of Mexico, who was residing in Fayetteville, Arkansas, was sentenced to 15 years in the United States Bureau of Prisons for trafficking methamphetamine in Fayetteville, Arkansas. Additionally, Castillo-Tovar was ordered to pay $2,000 in fines and associated court fees and to be supervised by the United States Probation Office for five years after release from prison. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville today.
According to court records, Castillo-Tovar was charged by Indictment on September 12, 2018 with six counts of drug-trafficking related charges, including the distribution of methamphetamine and possessing additional methamphetamine with the intent to later distribute it. Castillo-Tovar was convicted on December 12, 2018 of selling 55.8 grams of methamphetamine to a DEA informant on June 14, 2018. Cumulatively, the DEA’s investigation into Castillo-Tovar resulted in the seizure of over a pound of methamphetamine and a shotgun with an illegally-modified barrel.
This prosecution was part of the Western District of Arkansas’ “Operation Ozark Express,” which is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
This OCDETF case was investigated by the Drug Enforcement Administration in Fayetteville, Arkansas and the Fayetteville Police Department. Assistant United States Attorney Brandon Carter prosecuted the case for the Western District of Arkansas.
East Bay Drug Traffickers Sentenced to 15 Years and 10 Years in PrisonRead the Press Release
OAKLAND – Michael Vicochea was sentenced to 15 years in prison, and Christian Vanleer was sentenced to 10 years in prison, for their respective roles in a drug distribution conspiracy and related crimes, announced United States Attorney David L. Anderson and Drug Enforcement Administration Special Agent in Charge Chris Nielsen. The sentences were handed down by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge.
Vicochea, 26, of Tracy, Calif., pleaded guilty on August 20, 2018, to drug trafficking, weapons, and money laundering charges. According to his plea agreement, Vicochea conspired with co-defendant Oscar Escalante and others to distribute heroin and multiple pounds of methamphetamine. For example, Vicochea admitted that in July and August of 2016, Escalante supplied him with methamphetamine. On August 24, 2016, Vicochea’s nephew, Christian Vanleer, 26, of Oakland, possessed a pound of the drugs that Vicochea acknowledged he was responsible for selling. Vicochea also was responsible for giving to Escalante part of the proceeds of the sales after the drugs were sold. Vicochea also admitted that beginning in September 2014, he operated an indoor marijuana grow at his house that resulted in about 80 plants per harvest every 60-72 days. In addition, Vicochea admitted he assisted with the operations of other grow houses operated by his co-defendants and that he distributed marijuana from the operations in Alabama, Georgia, Tennessee, and Florida.
With respect to the firearms charges, Vicochea admitted he possessed a red Sig Sauer P220 pistol in furtherance of the drug trafficking crimes. He acknowledged that he possessed the firearm in order to protect himself and the marijuana grow at his house.
Further, Vicochea admitted he helped Escalante launder proceeds of the drug distribution. For example, in December of 2015, he deposited $46,100 in cash to accounts controlled by Escalante. To evade reporting requirements and to conceal that the funds were the proceeds of drug trafficking, Vicochea made deposits in amounts of $9,000 or less and at multiple bank branches in Tuscaloosa, Ala. Vicochea acknowledged depositing more than $165,000 into various bank accounts in furtherance of the money laundering scheme.
On December 15, 2016, a federal grand jury returned a Superseding Indictment charging Vicochea with the following crimes: conspiracy to manufacture, distribute and possess with intent to distribute 100 or more marijuana plants, in violation of 21 U.S.C. § 846; conspiracy to manufacture, distribute and possess with intent to distribute 100 grams or more of heroin and 50 grams or more of methamphetamine, in violation of 21 U.S.C. § 846; possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c); conspiracy to launder drug proceeds, in violation of 18 U.S.C. § 1956(h); possession and transfer of a machine gun, in violation of 18 U.S.C. § 922(o); distribution and possession with intent to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. § 841(a)(1); and money laundering by concealment, in violation of 18 U.S.C. § 1956(a)(1). Vicochea pleaded guilty to four counts and the remaining counts were dismissed.
Vanleer pleaded guilty to his role in the conspiracy on November 19, 2018, pursuant to a two-count Superseding Information, alleging conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin, and 50 grams or more of a mixture or substance containing methamphetamine, in violation of 21 U.S.C. § 846; and possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c).
According to his plea agreement, as early as December 2, 2015, and until August 24, 2016, Vanleer conspired with his codefendants to distribute cocaine, heroin, alprazolam, and methamphetamine. His role was to engage in street-level sales, take his share of the proceeds, and transmit the remainder of the proceeds to his co-conspirators. On August 24, 2016, law enforcement officers seized a pound of methamphetamine from a backpack Vanleer was carrying. Vanleer acknowledged that he had allowed Vicochea to store the methamphetamine at Vanleer’s apartment in Oakland. Vanleer further admitted that, along with the methamphetamine, he had a pistol in the backpack to protect himself and the drugs.
In addition to the prison terms, Judge Gilliam also ordered Vicochea and Vanleer to serve 5 years and 4 years of supervised release, respectively. Vanleer was ordered to pay a fine of $25,100 representing money paid to him by an undercover officer during controlled buy operations in 2016.
In addition to Vicochea and Vanleer, Judge Gilliam has sentenced the following defendants in connection with the conspiracy:
Defendant
Age
Charges
Sentence of Imprisonment
Oscar Escalante
43
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Marijuana Trafficking Conspiracy; 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(A)—Heroin and Methamphetamine Trafficking Conspiracy; 18 U.S.C. § 924(c) – Possession of a Firearm in Furtherance of Drug Trafficking; 18 U.S.C. § 1956(h) – Money Laundering Conspiracy
235 months
David Vigil
46
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Marijuana Trafficking Conspiracy; 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(A) – Heroin and Methamphetamine Trafficking Conspiracy
121 months
Phillip Jiunti
43
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Marijuana Trafficking Conspiracy; supervised release violation in separate 18 U.S.C. § 922(g)(1) – Felon in Possession of Firearm case
70 months
Daniel Medina
25
21 U.S.C. §§ 841(a)(1), (b)(1)(C) – Distribution of Heroin; 18 U.S.C. § 924(c) – Possession of a Firearm in Furtherance of Drug Trafficking
66 months
Oswaldo Escalante
46
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Marijuana Trafficking Conspiracy; 18 U.S.C. § 1956(h) – Money Laundering Conspiracy
65 months
Jorge Gomez
39
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Marijuana Trafficking Conspiracy
60 months
Ignacio Gonzalez
31
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(C) – Marijuana Trafficking Conspiracy; 18 U.S.C. § 924(c) – Possession of a Firearm in Furtherance of Drug Trafficking
60 months
Adan Gonzalez
47
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Marijuana Trafficking Conspiracy
60 months
James Hinkle
38
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Marijuana Trafficking Conspiracy
12 months, 1 day
Claudia Munoz
37
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Marijuana Trafficking Conspiracy; 18 U.S.C. § 1956(h) – Money Laundering Conspiracy
Time served, 3 years supervised release
Melina Escalante
40
18 U.S.C. § 1956(h) – Money Laundering Conspiracy
Time served, 3 years supervised release
Assistant U.S. Attorneys Frank Riebli and Katherine Wawrzyniak are prosecuting the case with the assistance of Rebecca Shelton. The prosecution is the result of an investigation by the DEA. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force, a multi-agency task force that coordinates long-term narcotics trafficking investigations.
Crawford County Man Charged with Illegally Possessing MachinegunsRead the Press Release
ERIE, Pa. - A resident of Cochranton, Pennsylvania has been indicted by a federal grand jury in Erie on charges of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The two-count indictment named Theodore D. Brown, 60, as the sole defendant.
According to the indictment presented to the court, on March 22, 2019, Brown possessed machineguns which are unlawful to own and were not registered to him in the National Firearms Registration and Transfer Record.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The law provides for a maximum total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Colombian Pleads Guilty in Robbery of $500K in Gems and Jewelry from Traveling Salesman in Pittsburgh’s North HillsRead the Press Release
PITTSBURGH - A resident of Bogota, Colombia, pleaded guilty in federal court to a charge of conspiracy to violate federal robbery laws. The announcement was made by United States Attorney Scott W. Brady, FBI Special Agent in Charge Robert Jones, and Chief Robert T. Amann of the Northern Regional Police Department.
Oscar Javier Rodriguez Roa, 36, of Bogota, Colombia, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that Roa was a member of an organized South American theft ring that targeted traveling jewelry salespersons in the United States and elsewhere. On May 5, 2013, Roa and his accomplices drove from Lawrenceville, Georgia to Western Pennsylvania in a rented car to set up the heist. On May 8, 2013, in Wexford, Pennsylvania, Roa and his three accomplices accosted a traveling jewelry salesman from New York City as the salesman exited his car in the parking lot of a Wexford jewelry store. Roa smashed the rear driver’s side window of the salesman’s car, reached inside the car, and stole a black shoulder bag containing approximately $500,000 worth of gemstones and jewelry while the other robbers punctured the rear driver’s side tire of the salesman’s car, kept an eye on the salesman, and drove the Nissan Maxima getaway car. Prior to the robbery, the accomplices obscured the Maxima’s license plate using a vanity plate. Witnesses to the robbery followed the Nissan Maxima to a church parking lot. After realizing they had been followed, Roa and his accomplices drove to nearby muffler shop where they abandoned the Nissan Maxima and fled on foot to a nearby CVS pharmacy. CVS pharmacy video surveillance, obtained by law enforcement, showed Oscar Javier Rodriguez Roa and one accomplice entering the store while the two remaining accomplices waited outside. Roa was seen talking on a cell phone as he entered the store, while Roa’s accomplice was seen carrying the black shoulder bag containing the gemstones and jewelry. Forensic analysis revealed Roa’s fingerprints on the front passenger door of the Nissan Maxima and on a video game console found in the trunk of the car. Flight records showed that Roa, who is not a citizen of the United States, fled the United States on May 16, 2013, by boarding a flight in Houston, Texas destined for Bogota, Colombia.
"Thanks to the excellent police work of the Northern Regional Police Department, the FBI and the tenacious efforts of the United States Department of Justice’s Office of International Affairs, this international criminal has been brought to justice," said U.S. Attorney Scott W. Brady. "This prosecution should send a message to would-be international criminals, if you commit crimes against Americans, we will find you and you will be brought to answer for your actions in the United States."
Judge Ambrose scheduled sentencing for August 12, 2019 at 10:00 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle and Trial Attorney Leshia Lee Dixon of the Criminal Division’s Organized Crime and Gang Section are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Northern Regional Police Department conducted the investigation that led to the prosecution of Oscar Javier Rodriguez Roa. The Justice Department’s Office of International Affairs provided significant assistance with Roa’s extradition from Colombia to Pittsburgh.
Charleston Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Charleston man pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Michael Pittman, 38, entered a guilty plea to an indictment charging him with possession with intent to distribute methamphetamine and heroin.
“Meth and heroin,” said United States Attorney Mike Stuart. “What else needs said?”
On October 9, 2018, officers with the Huntington Police Department were dispatched to the intersection of 18th Street West and Jefferson Avenue for a report of a man down. When they arrived on scene, they found Pittman laying in the middle of the road with no shirt or shoes on. Pittman told officers he had just injected heroin. Officers found approximately 53 grams of methamphetamine and approximately 9 grams of heroin in Pittman’s truck. Pittman admitted he intended to sell the methamphetamine and heroin.
Pittman faces up to twenty years in federal prison when he is sentenced on July 29, 2019.
The Huntington Police Department conducted the investigation. The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Cary Man Sentenced to Prison for Cocaine Distribution and Firearm OffensesRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, United States District Judge Louise W. Flanagan sentenced GUSTAVO ADOLFO RAMOS LEMUS, 32, of Cary, North Carolina, to 70 months in prison, followed by 5 years of supervised release.
On December 11, 2018, LEMUS pled guilty to Possession with the Intent to Distribute a Quantity of Cocaine and to Using, Carrying, and Possessing a Firearm in Furtherance of a Drug Trafficking Offense.
The investigation revealed that on January 20, 2015, a confidential informant (CI) working with the Cary Police Department (CPD) contacted LEMUS and attempted to arrange for the purchase of 2 ounces of cocaine. On January 21, 2015, the CI called LEMUS again and arranged for the purchase of the 2 ounces of cocaine in exchange for $1,900, to occur in a parking lot in Cary. Approximately 30 minutes later, LEMUS arrived at the parking lot and entered the front passenger seat of the CI’s vehicle. The CPD’S Emergency Response Team moved in, and LEMUS tossed a stolen .40 caliber Taurus handgun into the middle row of seats. He was taken into custody without incident. A search of LEMUS’s person revealed a quantity of cocaine in his jacket pocket. A search warrant was executed at LEMUS’ residence on Niles Street in Cary where investigators discovered digital scales, an additional quantity of cocaine, and $2,000 in U.S. currency.
This case was brought using the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Cary Police Department. The case was prosecuted by Assistant United States Attorney Scott A. Lemmon.
Carrollton, Texas Man Sentenced to 48 Months Probation, 8 Months Home Detention for Conspiracy to Commit Wire FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Iduar Acosta Fernandez, age 29, of Carrollton, Texas, was sentenced to 4 years’ probation and 8 months home detention for Conspiracy To Commit Wire Fraud, in violation of Title 18, United States Code, Section 1349. The charges arose from an investigation by the Lighthorse Police Department and the United States Secret Service.
The Indictment alleged that in or about November, 2017, to on or about March 27, 2018, in the Eastern District of Oklahoma and elsewhere, the defendant knowingly and willfully conspired with others known and unknown to the Grand Jury, to transmit or cause to be transmitted by means of a wire communication, in interstate commerce, writings, signs, signals, pictures, and sounds in order to obtain money by means of false and fraudulent pretenses, representations, and promises. The conspiracy involved the use of credit card “skimming devices” placed on gas pumps by members of the conspiracy to steal credit card information, create credit cards with the information and then use those cards to receive cash at ATM’s at the Winstar and border casinos located in Thackerville, Oklahoma.
“The use of skimming devices to steal credit card information is not a new trend, but the devices used today are more difficult to detect. There are precautions we should all take to protect our credit and bank card information from thieves using skimming devices. For example, before using a gas pump, make sure the panel is closed and doesn’t show signs of tampering. Many pumps now have a security seal. If the seal is broken, don’t use that pump,” United States Attorney Brian J. Kuester said. “Awareness that thieves are using this technology and exercising caution before using your credit card at the pump or at ATM’s are important to help us avoid being victims of this type of criminal scheme.”
The U.S. Federal Trade Commission has additional information about this and other schemes to defraud consumers. This can be found at https://www.consumer.ftc.gov/blog.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. First Assistant United States Attorney Christopher Wilson represented the United States.
Camden County, New Jersey, Man and Philadelphia Man Admit Roles in Conspiracy to Distribute OxycodoneRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man and a Philadelphia man today admitted their respective roles in conspiring to distribute oxycodone, U.S. Attorney Craig Carpenito announced.
Daniel Watson, 40, of Bellmawr, New Jersey, and Prussia Hing, 36, of Philadelphia, pleaded guilty before U.S. District Court Judge Jerome B. Simandle in Camden federal court to separate informations charging them each with one count of conspiracy to distribute and possess with intent to distribute oxycodone. Watson and Hing were previously charged in connection with one of the largest national healthcare fraud and opioid enforcement actions ever taken by the U.S. Department of Justice.
According to documents filed in this case and statements made in court:
From December 2017 through June 26, 2018, Watson and Hing conspired with each other and others to distribute unadulterated oxycodone and pressed pills containing oxycodone and hydrocodone, codeine, and methylphenidate. Hing was a source of supply; Watson made eight sales to an undercover officer and a confidential informant, totaling 1,080 oxycodone pills. The final three sales occurred in the vicinity of a Philadelphia hospital, where a conspirator worked as an anesthesiology technologist.
The drug trafficking conspiracy to which Watson and Hing pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of up to $1 million. Sentencing for both defendants is scheduled for July 17, 2019.
The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Christina O. Hud of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel:
Watson: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Hing: Gregory Pagano Esq., Philadelphia
California Man Sentenced to 30 Years in Federal Prison for Drug Trafficking ConspiracyRead the Press Release
Hattiesburg, Miss. – John Baxter, 36, of Hayward, California, was sentenced today by U.S. District Judge Keith Starrett to serve 360 months in federal prison, followed by 7 years of supervised release, for conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration (DEA). Baxter was also ordered to pay a $10,000 fine.
During the course of an investigation by the DEA, agents learned Baxter was the methamphetamine source of supply for Dexter Jones and his brother, Darrion Jones. Beginning as early as 2015, Baxter was responsible for supplying the Jones brothers with over 4.5 kilograms of methamphetamine "ice." On at least four occasions, Baxter utilized a courier to transport methamphetamine from California to Mississippi. Baxter was subsequently indicted for his role in the conspiracy along with the Jones brothers.
On February 21, 2019, Baxter pled guilty to conspiracy to possess with intent to distribute methamphetamine. The Jones brothers also pled guilty for their roles and were sentenced by Judge Starrett on September 6, 2018. Dexter Jones was sentenced to serve life in federal prison, while Darrion Jones was sentenced to serve 300 months in federal prison.
The case was investigated by the Drug Enforcement Administration, Lamar County Sheriff’s Department, Jones County Sheriff’s Department, and Mississippi Bureau of Narcotics. It was prosecuted by Assistant United States Attorney Shundral H. Cole.
Brownsville Man Heads to Federal Prison for Buying Crack CocaineRead the Press Release
BROWNSVILLE, Texas – A 46-year-old man has been ordered to federal prison following his conviction of possession with intent to distribute cocaine base, announced U.S. Attorney Ryan K. Patrick. Martin Arambula pleaded guilty Dec. 27, 2017.
Today, U.S. District Judge Fernando Rodriguez Jr. sentenced Arambula t0 120 months to be immediately followed by four years of supervised release. At the hearing, the court noted Arambula’s extensive criminal history, which included two robbery convictions.
During the summer of 2016, law enforcement initiated an investigation into the smuggling and distribution of multi-kilogram shipments of illicit narcotics within the United States by members of a drug trafficking organization operating within Cameron County.
Agents with the Drug Enforcement Administration (DEA) who were investigating the drug trafficking organization witnessed Arambula order crack cocaine from his supplier. Law Enforcement seized the drugs as they were being delivered to Arambula. The crack was intended to be sold in local street level sales in Cameron County.
Through the course of the investigation, agents were able to determine Arambula regularly bought crack cocaine from Jesus Hector Garza Jr.
Garza, 31, of Brownsville, previously pleaded guilty to conspiracy to possess with intent to distribute 50 grams or more of “Ice” methamphetamine and is awaiting sentencing.
Arambula has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The DEA and FBI conducted the Organized Crime Drug Enforcement Task Force investigation known as Operation Fatstacks. Assistant U.S. Attorney Karen Betancourt is prosecuting the case.
Brazilian National Sentenced for Illegal ReentryRead the Press Release
BOSTON - A Brazilian national pleaded guilty and was sentenced yesterday in federal court in Boston for illegally reentering the United States after being deported.
Adilson DeAndrade Lima, 49, a Brazilian national formerly residing in Brighton, pleaded guilty to one count of illegal reentry of a deported alien before U.S. District Court Judge Richard G. Stearns, who sentenced Lima to one year in prison. Lima will be subject to deportation proceedings upon completion of his sentence.
Lima was previously deported in 2001 and in 2017. After each deportation, he illegally reentered the United States without the appropriate permission.
The charging statute provides for a sentence of no greater than 20 years in prison, up to three years of supervised release, and a $250,000 fine. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Boston Man Sentenced for Distributing Cocaine and FentanylRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for distributing cocaine and fentanyl.
James L. Hardy, 53, was sentenced by U.S. District Court Judge Richard G. Stearns to four years in prison and three years of supervised release. Based on Hardy’s criminal history, the Government recommended a sentence of 151 months in prison. On Jan. 3, 2019, Hardy pleaded guilty to one count of distribution of cocaine and fentanyl. Hardy was arrested on Aug. 23, 2018, and has been in custody since.
“Fentanyl is killing thousands of Americans a year,” said U.S. Attorney Andrew Lelling, “and by now every drug dealer knows it. The government asked for a sentence of 151 months for this defendant because he has 15 prior convictions, three prior drug dealing convictions, and two of those convictions were federal. This is a defendant who has previously served a 15 year prison term for drug trafficking, and yet remained undeterred. We disagree with the judge’s sentence of 48 months.”
On May 21, 2018, Hardy sold an “8-Ball” (3.5 grams) of cocaine base, commonly referred to as “crack” cocaine, and five grams of fentanyl to an individual working with law enforcement. The sale occurred in a car driven by Hardy in the parking lot of a supermarket in Roslindale. On July 1, 2018, Hardy again sold the same individual working with law enforcement crack and fentanyl. For each transaction, Hardy received $450 for the cocaine and fentanyl.
Hardy has a lengthy criminal record dating back to 1979, including previous federal convictions. In 1996, Hardy was sentenced in federal court to 188 months in prison after being convicted of drug and firearm offenses. In 2017, Hardy was sentenced to “time served” (87 days) and 10 years of supervised release after being convicted of conspiracy to distribute cocaine and 100 grams or more of heroin. At the time of the offense for which Hardy was sentenced yesterday, he was still on supervised release stemming from his 2017 conviction.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William G. Gross made the announcement. Valuable assistance was provided by the Suffolk County Sheriff’s Department. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Boston Man Sentenced for Bank RobberyRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for bank robbery.
Phillip Leo Campanirio, 53, was sentenced by US District Court Judge George A. O’Toole to 70 months in prison, three years of supervised release, and ordered to pay restitution in the amount of $4,680 to Citizens Bank. On Jan. 9, 2019, Campanirio pleaded guilty to one count of bank robbery. Campanirio has been in federal custody since his arrest on Aug. 31, 2018.
On April 28, 2018, an individual, later determined to be Campanirio, entered a branch of Citizens Bank in Allston, approached the teller and demanded cash. Campanirio stated words to the effect: “$20, $50, and $100 dollar bills. I don’t want any [expletive] dye packs.” The teller handed Campanirio money from her drawer, and then, because Campanirio told her, “I want more,” the teller gave Campanirio additional cash from her drawer. Campanirio then exited the bank. A post-robbery audit determined that the robber had stolen $4,680.
The teller described Campanirio as an approximately 50-year-old white male, who walked with a limp. The teller stated that the robber was wearing a red and blue baseball hat, white reflective sunglasses, a white hooded sweatshirt, brown pants and white sneakers. Bank surveillance cameras showed images of Campanirio consistent with the description provided by the bank’s teller.
Information and pictures of Campanirio were disseminated on various media sites. A probation officer, who is currently supervising Campanirio while he is on supervised release stemming from a prior bank robbery conviction, saw the publicly released information and recognized the suspect as Campanirio.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Boone County Man Pleads Guilty to Federal Drug ChargeRead the Press Release
CHARLESTON, W.Va. – A Boone County man pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Benjamin John Mooney, 42, pled guilty before Senior United States District Judge John T. Copenhaver, Jr. to distributing methamphetamine. Stuart commended the investigation conducted by the Boone County Sheriff’s Office, the West Virginia State Police, the U.S. 119 Drug and Violent Crime Task Force, and the Drug Enforcement Administration.
“Rural areas like Boone County have paid too high a price and been hit hard by meth and other drugs,” said United States Attorney Mike Stuart. “Getting dealers like Mooney off the streets will help stem the tide.”
As established by public court filings and hearings, Mooney sold highly pure methamphetamine to an undercover police informant on four separate occasions between July 2017 and February 2018. Mooney told police investigators that he had been selling over 10 grams of methamphetamine weekly for at least a year.
Mooney is facing up to twenty years in federal prison when he is sentenced on June 27, 2019. Assistant United States Attorney Drew O. Inman is handling the prosecution.
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Bloods Gang Member Sentenced to Life Plus 50 Years for Multiple MurdersRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to a 5 life sentences plus an additional 50 years in prison for his involvement in a violent crime spree, including four murders, multiple attempted murders, robbery, attempted robbery, and firearms offenses stemming from his involvement in the Nine Trey Gangsters, a street gang affiliated with the United Blood Nation.
According to court documents, Nathaniel Tyree Mitchell, aka “Savage”, 26, was convicted of conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO), four counts of murder, in violation of the Violent Crimes in Aid of Racketeering Act (VICAR), six counts of VICAR attempted murder, five counts of VICAR assault with a dangerous weapon, and a number of other firearms offenses related to those shootings.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Billy Club. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, Mark R. Herring, Attorney General of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Angela Greene, Interim Chief of Portsmouth Police, Larry D. Boone, Chief of Norfolk Police, James A. Cervera, Chief of Virginia Beach Police, Col. K.L. Wright, Chief of Chesapeake Police, and Thomas E. Bennett, Chief of Suffolk Police, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorneys Joseph E. DePadilla, Andrew C. Bosse, John F. Butler, and Trial Attorney Teresa A. Wallbaum of the Justice Department’s Organized Crime and Gang Section prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-130-3.
Bloods Gang Member Sentenced to Five Life Sentences Plus 50 Years in Prison for RICO Conspiracy and Multiple MurdersRead the Press Release
A Portsmouth man was sentenced today to five life sentences plus an additional 50 years in prison for his involvement in a violent crime spree, including his commission of four murders, multiple attempted murders, robbery, attempted robbery and firearms offenses stemming from his involvement in the Nine Trey Gangsters, a street gang affiliated with the United Blood Nation.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, Attorney General of Virginia Mark R. Herring, Special Agent in Charge Martin Culbreath of the FBI’s Norfolk Field Office, Interim Chief of Portsmouth Police Angela Greene, Chief of Norfolk Police Larry D. Boone, Chief of Virginia Beach Police James A. Cervera, Chief of Chesapeake Police Col. K.L. Wright and Chief of Suffolk Police Thomas E. Bennett made the announcement.
According to court documents, Nathaniel Tyree Mitchell, aka Savage, 26, was convicted of conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO), four counts of murder, in violation of the Violent Crimes in Aid of Racketeering Act (VICAR), six counts of VICAR attempted murder, five counts of VICAR assault with a dangerous weapon and a number of other firearms offenses related to those shootings before Chief U.S. District Judge Mark S. Davis for the Eastern District of Virginia.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Billy Club. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Trial Attorney Teresa A. Wallbaum of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Joseph E. DePadilla, Andrew C. Bosse and John F. Butler of the Eastern District of Virginia prosecuted the case.
Billings man admits meth trafficking, firearms crimesRead the Press Release
BILLINGS – Billings resident Chad Allen Beres admitted methamphetamine trafficking and firearm crimes during a hearing today, U.S. Attorney Kurt Alme said.
Beres, 32, pleaded guilty to conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime.
Beres faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug counts. He also faces a mandatory consecutive five years to life in prison, a $250,000 fine and three years of supervised release on the firearm count.
U.S. Magistrate Judge Timothy J. Cavan presided and will recommend Beres plea be accepted by U.S. District Judge Susan P. Watters, who is hearing the case. Beres is detained.
In a court document filed in the case, the prosecution said evidence would show that Billings Police Department officers arrested co-defendant Christopher Hurst at a hotel on Feb. 27, 2018. During a search of the room, officers found meth and a firearm. Hurst admitted receiving from four to eight ounces of meth nearly every day from his suppliers and that he had received at least 15 pounds of meth that he distributed.
Agents identified Beres as a supplier of Hurst’s and also learned that co-defendant Larry Barnett also got meth from Beres. Agents served a search warrant on Beres’ residence and seized about 700 grams of meth, which is about 1.5 pounds and the equivalent of about 5,600 doses. Agents also seized three shotguns and two handguns.
Hurst and Barnett have pleaded guilty to charges and are awaiting sentencing. A fourth co-defendant, Maurice Fregia, has pleaded not guilty and is awaiting trial.
Assistant U.S. Attorney Colin Rubich is prosecuting the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force, the FBI and BPD.
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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Bastrop residents plead guilty to drug, firearm chargesRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that Cortez Demoria McWilson, 29, and Troydarius Jamal Jackson, 29, both of Bastrop, Louisiana, pleaded guilty Friday before U.S. District Judge Terry Doughty to drug and firearm charges.
According to the guilty pleas, a Louisiana State Police trooper encountered McWilson and Jackson in a vehicle on September 11, 2017 in Bastrop. As the trooper approached the vehicle, in an attempt to speak to the defendants, McWilson started the vehicle and drove off, prompting a pursuit of the vehicle by the LSP trooper and other law enforcement officers. Eventually, the vehicle stopped and McWilson and Jackson fled the area but were later apprehended. A law enforcement officer searched the vehicle and found a GSG, Model 522, .22LR-caliber rifle and ammunition on the front passenger seat. Also on the front passenger seat was a grocery bag containing methamphetamine, Xanax, marijuana, clear plastic baggies and a digital scale with marijuana residue on it.
Jackson pleaded guilty to possession of a firearm by a convicted felon. He was previously convicted for distribution of a controlled dangerous substance in 2013, for perjury in 2012, and for possession with intent to distribute a controlled dangerous substance in 2015. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition.
McWilson pleaded guilty to conspiracy to possess with intent to distribute controlled dangerous substances. He faces up to 20 years in prison and a $1 million fine for drug conspiracy. Jackson faces up to 10 years in prison and a $250,000 fine for the firearms charge. They both face three years of supervised release. Doughty set the sentencing date for August 7, 2019.
The ATF, Louisiana State Police and Morehouse Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan is prosecuting the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, 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.
Bakersfield Woman Sentenced to 7.5 Years in Prison for Possession of Stolen Mail and Possession of Methamphetamine with the Intent to DistributeRead the Press Release
FRESNO, Calif. — Erin Elizabeth Peterson, 41, of Bakersfield, was sentenced Monday to seven and a half years in prison for possession of stolen U.S. mail and possession with intent to distribute methamphetamine U.S. Attorney McGregor W. Scott announced. Peterson was also ordered to pay $92,908 in restitution.
According to court documents, from July to December 2017, Peterson made fraudulent transactions at various retail establishments in Bakersfield using credit and debit cards stolen from the mail. Peterson was identified from photographs obtained from the stores where the stolen cards were used. On December 28, 2017, a federal search warrant was executed at Peterson’s residence and 428 pieces of stolen mail, 31 stolen credit/debit cards, over a hundred personal and business checks and a counterfeit arrow key used to access U.S. community mailboxes were found. Also located in the residence were approximately 140 grams of methamphetamine, $1,400 in cash, drug packaging material, and a digital scale.
Peterson admitted that she had been stealing mail for approximately one year, usually from mailboxes in Bakersfield wherever her counterfeit arrow key would work. Peterson admits that she primarily looked for mail that contained debit or credit cards. When presented with multiple photographs of a female suspect seen shopping at various stores in Bakersfield using stolen debit and credit cards, Peterson admitted that she was in fact that person.
Peterson also admitted that the methamphetamine in her residence was hers and that she sold crystal methamphetamine to help support her habit. Peterson admitted that she obtained about a quarter pound of crystal methamphetamine a week and sold ounces for $200.
This case was the product of an investigation by the U.S. Postal Inspection Service and the Bakersfield Police Department. Assistant U.S. Attorney Brian K. Delaney prosecuted the case.
Bakersfield Man Sentenced to a Year in Prison for Assaulting Postal EmployeeRead the Press Release
FRESNO, Calif. — Donald Landry Beverly, 25, of Bakersfield, was sentenced Monday to one year and one day in prison for assaulting a federal officer, U.S. Attorney McGregor W. Scott announced.
According to court documents, on July 19, 2018, Beverly confronted a letter carrier for the United States Postal Service while she was performing her regular mail delivery duties. He complained to the letter carrier that certain mail that he was expecting had not been delivered. After an extended discussion, Beverly slammed his forearm and elbow against her face and shoulder without warning or provocation. The assault resulted in significant bruising to her face and arm.
This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Brian Delaney, Brian Enos, and Katherine Schuh prosecuted the case.
Armed Fentanyl Trafficker Pleads GuiltyRead the Press Release
PROVIDENCE – A Central Falls resident previously convicted for drug trafficking in Massachusetts today pleaded guilty in federal court in Providence to charges that he trafficked fentanyl from his Central Falls apartment and that he was a felon in possession of two firearms, one of which he said he obtained for “protection” for his drug trafficking activities.
Appearing before U.S. District Court Chief Judge William E. Smith, Dennis Rivera, 31, pleaded guilty to possession with the intent to distribute fentanyl, possession of a firearm in furtherance of a drug trafficking crime, and two counts of possession of a firearm after having been convicted of a crime punishable by imprisonment for a term exceeding one year.
Rivera’s guilty plea is announced by United States Attorney Aaron L. Weisman, Central Falls Police Chief Colonel James J. Mendonca, and Special Agent in Charge of the Boston Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kelly D. Brady.
According to information presented to the Court, in late January 2018, a Central Falls Police Department and ATF Project Safe Neighborhoods investigation into Rivera’s drug trafficking activities included at least three law enforcement controlled purchases of fentanyl from Rivera. The investigation also determined that Rivera had told others that he possessed a firearm for “protection.”
On February 3, 2018, law enforcement executed a court-authorized search of Rivera’s residence and seized, among other items, a .22 caliber revolver, 11grams of cocaine, 21grams of fentanyl, and various items used in the packaging and distribution of drugs.
At the time of Rivera’s arrest on February 3, 2018, he was awaiting trial in Rhode Island state court on an unrelated firearm charge. Rivera was arrested by Central Falls Police in June 2017 following an altercation with another person. As officers approached the two men, Rivera stashed a semi-automatic pistol near the bumper of a nearby car, then quickly walked away. The firearm was retrieved by police and Rivera was found hiding in the bathroom of a stranger’s apartment nearby.
Rivera is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on August 16, 2019. According to a plea agreement filed in this matter, at the time of sentencing the Government and the defendant will jointly recommend the Court impose a term of incarceration of 72 months in federal prison.
The case is being prosecuted by Assistant U.S. Attorneys Ronald R. Gendron and Ly T. Chin.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Alabama Man Pleads Guilty to Filing a False Tax ReturnRead the Press Release
A Jefferson County man pleaded guilty today in the U.S. District Court for the Northern District of Alabama 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 for the Northern District of Alabama.
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-Criminal Investigation 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.
Akron man indicted on charges that he robbed eight businesses in Akron or Cuyahoga FallsRead the Press Release
An Akron man was indicted in federal court on charges that he robbed eight businesses in Akron or Cuyahoga Falls.
Darrion L. Powers, 22, was indicted on six counts of Hobbs Act robbery and two counts of bank robbery.
According to the indictment, Powers is accused of robbing the following locations:
On December 4, 2018, Powers robbed Ms. Julye’s Kitchen on S. Main Street in Akron.
On December 24, 2018, Powers robbed Marco’s Pizza on Portage Trail in Cuyahoga Falls.
On January 4, 2019, Powers robbed Huntington Bank on S. Arlington Street in Akron.
On January 29, 2019, Powers robbed Rocco’s Pizza on Portage Trail in Cuyahoga Falls.
On February 1, 2019, Powers robbed Mark and Philly’s Pizza on Bailey Road in Cuyahoga Falls.
On February 1, 2019, Powers robbed Italo’s Pizza on Brown Street in Akron.
On February 1, 2019, Powers robbed Two Monks Brewing Co. on Massillon Road in Akron.
On February 12, 2019, Powers robbed PNC Bank on Massillon Road in Akron.
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 records, 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.
The investigation preceding the indictment was conducted by the FBI, Akron Police, and Cuyahoga Falls Police. The case is being prosecuted by Assistant U.S. Attorney Peter E. Daly.
These cases are part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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.
Adams County Man Indicted on Child Pornography ChargesRead the Press Release
SPRINGFIELD, Ill. – An Adams county, Ill., man, Skyler M. Durbin, 24, of Payson, appeared today before U.S. Magistrate Judge Tom Schanzle-Haskins for arraignment on child pornography charges. An initial trial date was set for June 4, 2019, before U.S. District Judge Sue E. Myerscough. Durbin was ordered to remain in the custody of the U.S. Marshals Service.
A four-count indictment alleges that on Dec. 26, 2018, and on Jan 31, 2019, Durbin received and distributed images of child pornography (two counts) and that he possessed images of child pornography (two counts.)
If convicted, for each count of receipt and distribution of child pornography, Durbin faces a statutory penalty of a minimum 15 years to 40 years in prison. For possession of child pornography, Durbin faces statutory penalties of 10 to 20 years in prison.
The case is being prosecuted by Assistant U.S. Attorney Victor Yanz. The charges are the result of an investigation by the Adams County Sheriff’s Office and the Illinois Attorney General’s Office Internet Crimes Against Children Task Force, in cooperation with the Adams County State’s Attorney’s Office.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
16 Parents Involved in College Admissions Scandal Indicted by Federal Grand Jury in BostonRead the Press Release
BOSTON – Sixteen parents involved in the college admissions scandal were charged today in Boston in a second superseding indictment with conspiring to commit fraud and money laundering in connection with a scheme to use bribery to cheat on college entrance exams and to facilitate their children’s admission to selective colleges and universities as purported athletic recruits.
The defendants, all of whom were arrested last month on a criminal complaint, are charged with conspiring with William “Rick” Singer, 58, of Newport Beach, Calif., and others, to bribe SAT and ACT exam administrators to allow a test taker to secretly take college entrance exams in place of students, or to correct the students’ answers after they had taken the exam, and with bribing university athletic coaches and administrators to facilitate the admission of students to elite universities as purported athletic recruits.
The second superseding indictment also charges the defendants with conspiring to launder the bribes and other payments in furtherance of the fraud by funneling them through Singer’s purported charity and his for-profit corporation, as well as by transferring money into the United States, from outside the United States, for the purpose of promoting the fraud scheme.
The following defendants were charged in the second superseding indictment with one count of conspiracy to commit mail and wire fraud and honest services mail and wire fraud and one count of conspiracy to commit money laundering:
- Gamal Abdelaziz, 62, aka “Gamal Aziz,” of Las Vegas, Nev.;
- Diane Blake, 55, of Ross, Calif.;
- Todd Blake, 53, of Ross, Calif.;
- I-Hsin “Joey” Chen, 64, of Newport Beach, Calif.;
- Mossimo Giannulli, 55, of Los Angeles, Calif.;
- Elizabeth Henriquez, 56, of Atherton, Calif.;
- Manuel Henriquez, 56, of Atherton, Calif.;
- Douglas Hodge, 61, of Laguna Beach, Calif.;
- Michelle Janavs, 48, of Newport Coast, Calif.;
- Elisabeth Kimmel, 54, of Las Vegas, Nev.;
- Lori Loughlin, 54, of Los Angeles, Calif.;
- William McGlashan, Jr., 55, of Mill Valley, Calif.;
- Marci Palatella, 63, of Hillsborough, Calif.;
- John Wilson, 59, of Lynnfield, Mass.;
- Homayoun Zadeh, 57, of Calabasas, Calif.; and
- Robert Zangrillo, 52, of Miami, Fla.
Three parents—David Sidoo, 59, of Vancouver, Canada; Gregory Colburn, 62, of Palo Alto, Calif.; and Amy Colburn, 50, of Palo Alto, Calif.—were previously indicted in connection with the scheme.
An arraignment date has not yet been scheduled. Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit money laundering provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the property involved in the money laundering. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
8 April 2019
Woodall Man Sentenced to 37 Months for Illegal Alien in Possession of Firearm and AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Baudel Lopez-Rodriguez, age 41, of Woodall, Oklahoma, was sentenced to 37 months’ imprisonment and 3 years of supervised release for Illegal Alien In Possession of Firearm and Ammunition, in violation of Title 18, United States Code, Sections 922(g)(5)(A) and 924(a)(2). The charges arose from an investigation by the Cherokee County Sheriff’s Office, Immigration and Customs Enforcement of the Department of Homeland Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about December 2, 2016, within the Eastern District of Oklahoma, the defendant, then being an alien illegally and unlawfully in the United States, knowingly possessed in and affecting commerce, firearms and ammunition which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said. “Enforcement of federal gun laws is one way we are able to partner with local law enforcement agencies and district attorneys in their on-going efforts to make communities safer. This investigation and prosecution was a result of open lines of communication between all the agencies involved.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. First Assistant United States Attorney Christopher Wilson represented the United States.
Vancouver, Washington Man Sentenced to Prison for Scheme to Claim Disability Benefits while Working under a False IdentityRead the Press Release
A former engineer employed with technology manufacturing companies in the Vancouver, Washington area was sentenced today in U.S. District Court in Tacoma to 27 months in prison for his nearly twenty-year scheme to collect disability benefits under his own identity while working under a false identity, announced U.S. Attorney Brian T. Moran. STEVEN LYNN ROSS, 67, stole $368,458 in government benefits between 2001 and 2017. ROSS possessed identity documents he had fraudulently obtained in the names of children who died in the 1950s and 1960s. ROSS used the stolen identities to obtain identity documents in the false names as early as 1987. At today’s sentencing hearing U.S. District Judge Benjamin H. Settle imposed an additional $20,000 fine, saying, “Our government depends on the honesty of its citizens to work…. The victims here are future generations… his daughters and grandchildren will be paying.”
“By taking this money, the defendant stole, month after month and year after year, from government programs that are stretched to the limit, where every dollar is vital to provide for the community’s most vulnerable,” said U.S. Attorney Brian T. Moran. “These crimes have a corrosive effect on the public’s faith that benefit programs can work as intended. When people lie to obtain benefits, agencies must use their limited resources to detect and investigate fraud, instead of helping the truly deserving.”
According to records filed in the case, in 1987 ROSS assumed the identities of at least two deceased children in order to apply for Social Security numbers in their names. One of the children had died in a car accident as a toddler, the other died in a plane crash in 1968 at age thirteen. ROSS used these identities in various ways, obtaining drivers licenses, bank accounts and passports in different names. In 2001, ROSS began collecting Social Security Disability payments in his true name, saying he was unable to work due to physical ailments. In fact, at the same time that he was collecting disability payments, ROSS continued to work under one of the identities he had stolen. In this way, ROSS collected more than $360,000 in disability payments even though he was able to work and therefore not disabled under program rules. ROSS even used his false identities as “references” vouching for his disabled status in his submissions to the Social Security Administration.
The Washington State Department of Licensing began investigating when facial recognition software flagged that ROSS’s image appeared in more than one driver’s license photo. The case was turned over to the Social Security Office of Inspector General (SSA-OIG) and U.S. State Department Diplomatic Security Service (DSS). The DSS determined that ROSS had obtained passports in his own name as well as the names of three deceased children, and that all four passports contain ROSS’ picture. Between 1998 and 2011, ROSS traveled out of the country 22 times with one of the stolen identities, even as he also traveled internationally using his own name and passport as well.
ROSS pleaded guilty on January 15, 2019 to theft of public funds and aggravated identity theft. He is in the process of paying restitution of $368,458 and now will be responsible for the $20,000 fine as well. Judge Settle imposed three years of supervised release.
The case was investigated by the Social Security Office of Inspector General (SSA-OIG), the U.S. Department of State Diplomatic Security Service (DSS), and the Washington State Department of Licensing License Integrity Unit (DOL/LIU).
The case is being prosecuted by Special Assistant United States Attorney Benjamin Diggs. Mr. Diggs is an attorney with the Social Security Administration specially designated to prosecute benefit fraud cases in federal court.
U.S. Attorney's Office Partners with Western North Carolina Crime Victims Coalition in Observance of National Crime Victims' Rights WeekRead the Press Release
ASHEVILLE, N.C. – Each year in April, the Department of Justice and the United States Attorney’s Office for the Western District of North Carolina observe National Crime Victims’ Rights Week, by taking time to honor victims of crime and those who advocate on their behalf.
This year’s observance takes place April 7-13, with the theme “Honoring Our Past. Creating Hope for the Future,” which celebrates the progresses made, and a future of crime victim services that is more inclusive, accessible and trauma-informed.
“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.”
“Behind crime statistics are real crimes, inflicted upon real people. National Crime Victims’ Rights Week is a time of remembrance, and a tribute to those whose lives have been affected by crime,” said U.S. Attorney Andrew Murray. “Each day, the public servants of the U.S. Attorney’s Office work hard to honor their oath to serve the citizens of the Western District, to advocate for those individuals and communities affected by crime, and to seek justice for crime victims, their families, and their loved ones.”
In observance of National Crime Victims’ Rights Week, the Western North Carolina Crime Victims Coalition will hold a meet-and-greet on Tuesday, April 9, 2019, between 8:30 and 10:00 a.m. in Asheville. Local Asheville City and Buncombe County government staff, council members, commissioners, law enforcement, service providers, and survivors of crime are invited to discuss the County’s efforts to provide assistance and support to crime victims. Also on that date, the Asheville Buncombe Homicide Survivors Support Group will celebrate its first anniversary. The group meets on the second Tuesday of every month at 7:00 p.m., at the YWCA, located at 185 S. French Broad Avenue, in Asheville.
Lynne W. Crout to be Recognized for Her Contributions to Crime Victims
Lynne Ward Crout, Victim Assistance Specialist for the U.S. Attorney’s Office, will receive the “Outstanding Criminal Justice Professional Award,” in recognition of her lifelong service and advocacy for victims of crime. Ms. Crout will be honored by the Crime Victim Coalition in Charlotte, and the ceremony will take place on Thursday, April 11, 2019, at the Mayfield Missionary Baptist Church.
Ms. Crout works for the U.S. Attorney’s Office branch located in Asheville. She has been with the office for 34 years, with the past 20 years working as a Victim Witness Coordinator. Ms. Crout works directly with victims on the Cherokee Indian Reservation, the Blue Ridge Parkway, the Great Smoky Mountains National Park and the Pisgah National Forest. Her duties include providing advocacy, support and services to federal crime victims. In 2002, Ms. Crout won the National Crime Victims’ Services Award for her work with victim families on three capital murder cases. Ms. Crout is a member of the North Carolina Victim Assistance Network, and Co-chair of the Western North Carolina Crime Victims Coalition.
“Ms. Crout’s work embodies this Office’s ongoing commitment to uphold the rule of law, to protect our fellow citizens, to help and empower the most vulnerable among us, and to give justice to those who have been affected by crime and violence. I commend Ms. Crout for her decades of public service, during which she has achieved outstanding results in work that makes a difference in the lives of citizens across the Western District.”
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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. 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/.
U.S. Attorney to Join Federal Law Enforcement for Press Conference Tomorrow at 12:00 p.m.Read the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that a press conference will be held tomorrow, Tuesday, April 9, 2019, at 12:00 p.m., at Palmetto GBA, 17 Technology Circle, Columbia, SC 29203.
Represented at the press conference will be the U.S. Attorney’s Office for the District of South Carolina, the Federal Bureau of Investigation, the Department of Health and Human Services – Office of Inspector General, and the Internal Revenue Service – Criminal Investigations.
WHEN: Tuesday, April 9, 2019, at 12:00 p.m.
WHERE: Palmetto GBS
17 Technology Circle
Columbia, SC 29203
NOTE: Press inquiries regarding logistics should be directed to Lance Crick, 864-282-2105. All media must present a government-issued photo ID (such as a driver’s license). Members of the media wishing to attend the remarks should gather in the lobby of Palmetto GBS at 11:30 a.m., 30 minutes in advance.
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Two Sentenced for Robbing Local Business with a FirearmRead the Press Release
CORPUS CHRISTI, Texas – Two local men have been ordered to federal prison following their convictions of robbery and brandishing a firearm in furtherance of a crime of violence, announced U.S. Attorney Ryan K. Patrick.
Matthew Joseph Bryant, 24, and Nathealle Avori Tyrell Jones, 21, each pleaded guilty Jan. 31, 2019, as did and Corey Alexander Newman, 25.
Today, Senior U.S. District Judge Janis Graham Jack handed Bryant and Jones each a 33-month sentence for the robbery to be followed by an additional 84 months for the firearms charge which must be served consecutively to the other sentence imposed. Both must also serve five years of supervised release following completion of their sentences.
Newman is pending his sentencing hearing.
On Aug. 5, 2018, local law enforcement responded to an aggravated robbery at the Texas Food Mart located in the 6100 block of Williams. As officers arrived in the area, they observed a suspect vehicle and attempted to conduct a traffic stop. The vehicle then fled from the officers until crashing into a utility pole.
At that time, Bryant, Jones and Newman fled from the vehicle, but were soon arrested and taken into custody.
Officers searched the vehicle and surrounding area and discovered U.S. currency, convenience store items, cigarettes, disposable gloves and a loaded handgun with an extended magazine.
Surveillance footage at the location showed that two males wearing dark clothing and bandanas covering their faces entered the store. As one male stayed by the front door and pointed a handgun at the clerk, the other male went behind the counter and emptied the cash register into a bag along with cigarettes and flavored cigars. The male then took the clerk’s cellular phone and wallet before leaving the store and driving off in a dark colored sedan.
During the follow-up investigation, law enforcement was able to determine that Bryant was in possession of the firearm and entered the store with another individual while Jones, the getaway driver, and Newman waited outside.
Bryant and Jones have been and will remain in custody pending transfer to U.S. Bureau of Prisons facility to be determined in the near future.
The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Two Huntington Men Sentenced on Federal Drug ChargesRead the Press Release
HUNTINGTON, W.Va. – Two Huntington men were sentenced to prison today in federal court in Huntington, announced United States Attorney Mike Stuart. The sentences were imposed by United States District Judge Robert C. Chambers.
“Add two more to our list of prosecutions for heroin or fentanyl related offenses,” said United States Attorney Mike Stuart. “We’ve made great progress, but there is still much work to do.”
Dahran Montgomery, also known as “Daedog”, 42, was sentenced to 52 months in prison. Montgomery previously pled guilty to two counts of aiding and abetting the distribution of heroin and one count of possession with the intent to distribute heroin. He admitted that on February 16, 2017 and May 1, 2017, Quandale Turk directed him to distribute heroin to a confidential informant in Huntington. Montgomery also admitted that on May 3, 2018, officers with the Huntington Police Department executed a search warrant at his residence at 920 Eutaw Place in Huntington. Officers seized approximately 80 grams of suspected heroin in the kitchen.
David Paul, 38, was sentenced to 46 months in prison. Paul previously pled guilty to possession with the intent to distribute heroin that contained fentanyl. Paul admitted that on January 10, 2018, officers with the Huntington Police Department executed a search warrant at his residence at 528 8th Avenue in Huntington. Officers found approximately 96 grams of heroin and approximately 63 grams of heroin that contained fentanyl in a safe. 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.
The Huntington Police Department conducted the investigations. Assistant United States Attorney Stephanie S. Taylor handled the prosecutions.
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Two Federal Inmates Charged with Possession of A WeaponRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that two United States Penitentiary, (“USP”) Lewisburg inmates were indicted separately by a federal grand jury on March 28, 2019, for possession of a weapon while in prison.
According to United States Attorney David J. Freed, Jermaine Ray, age 36, was found in possession of a homemade sharpened piece of plastic with a metal tip, commonly referred to as a “shank” that was designed to be a weapon on August 22, 2018.
Tony C. Knott, age 36, was found in possession of a homemade sharpened piece of plastic with a metal tip, commonly referred to as a “shank” that was designed to be a weapon on August 24, 2018.
The charges in both cases stem from an investigation by officers at USP Lewisburg and the Federal Bureau of Investigation. Assistant United States Attorney Geoffrey MacArthur and Special Assistant United States Attorney Michael P. Figgsganter are prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The defendant is facing a maximum of ten years of incarceration and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Cherry Hill Hillside Gang Members Plead Guilty to Federal Racketeering Conspiracy ChargesRead the Press Release
Eight Co-Defendants Previously Pleaded Guilty and Were Sentenced to Between 10 and 30 Years In Federal Prison
Baltimore, Maryland – On Friday, April 5, 2019, Christopher Dukes, age 27; and Marcus Johnson, age 28, both of Baltimore, Maryland, pleaded guilty to conspiracy to participate in a racketeering enterprise related to their activities as members of the Hillside gang that operated in the Cherry Hill neighborhood of Baltimore. As part of Dukes’ plea agreement, he admitted to participating in two murders; two attempted murders, including of a law enforcement officer; and the distribution of narcotics.
Ten other Hillside gang members have previously pleaded guilty to their participation in the racketeering conspiracy. Of those, eight have been sentenced to between 10 and 30 years in federal prison. Seven defendants are scheduled to go to trial on May 6, 2019. Two defendants remain at large and are being sought by law enforcement.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
“The most important thing that law enforcement officers can do to stop violence is to make clear that killers will be held accountable,” said U.S. Attorney Robert K. Hur. “The Hillside gang is responsible for murders and other acts of violence throughout their community. All of the members of the conspiracy were aware of the violent acts committed by this gang. Christopher Dukes personally participated in two murders and two attempted murders. He and his co-defendants will now serve years in federal prison, where there is no parole--ever.”
“The gun violence resulting from these gang turf wars and rivalries is tearing this city apart,” said ATF Baltimore Special Agent in Charge Rob Cekada. “We remain committed in our mission to identify, investigate, and incarcerate anyone using firearms to commit these violent crimes.”
According to their plea agreements, Dukes and Johnson were members and associates of the Hillside Enterprise, which they knew distributed powder and crack cocaine, heroin, oxycodone and marijuana, primarily in the Cherry Hill Shopping Center, in other locations throughout Cherry Hill, and in west and southwest Baltimore City. The members of the Hillside Enterprise used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the activities of the organization, including narcotics trafficking. Hillside members used residences in and around Cherry Hill to cut and package drugs for distribution, primarily heroin, powder cocaine, and crack. Only trusted members of the Hillside Enterprise were admitted to these locations while the drugs were being prepared for sale. In an effort to distinguish their narcotics, members used colored topped vials or colored the drugs with food coloring. Dukes admitted that he sold drugs as a member of Hillside, including on school grounds in 2012, and was captured on video in a Hillside cut house preparing drugs for sale in 2014. Johnson also admitted that he regularly distributed drugs on behalf of the gang.
Members of the Hillside Enterprise routinely carried firearms and committed acts of violence in furtherance of the organization’s activities, including shootings, beatings, murders, and other violence in order to intimidate others who would interfere with their narcotics trafficking. Acts of violence were also committed to discipline members within the Hillside Enterprise for transgressions, real or perceived, against the conspiracy. For example, Johnson admitted that on January 13, 2012, in the 400 block of Roundview Road in Baltimore, he participated in an assault of an individual who sold narcotics on behalf of Hillside.
Hillside members and associates have been in a long-running dispute with persons not part of the gang, including Up Da Hill (“UDH”), the Lakebrook Circle Boys, and others. Members and associates of Hillside have routinely engaged in acts of violence, including murder, directed at members of these rival organizations, or persons who happen to be located on territory controlled by these rival organizations. Dukes and Johnson knew that these acts of violence, including the homicides, were committed by Hillside members and associates.
Specifically, Dukes admitted that on August 1, 2011, he attempted to hit a law enforcement officer with his car in the 2900 block of Waterview Avenue. Further, in a case of mistaken identity, on August 6, 2012, Duke and three other Hillside members shot two individuals, killing one of them, in the 2700 block of Giles Road, in the Up Da Hill section of Cherry Hill. The intended target of Dukes and his fellow Hillside members was a member of the Up Da Hill gang. Dukes and two other Hillside members also participated in the murder of an individual on September 8, 2012, in the 2600 block of Kent Street in Baltimore, in a dispute over drugs and money. Dukes admitted that on October 18, 2012, he and at least one Hillside co-conspirator shot an individual during an attempted robbery, using the same gun that was used in the murder on September 8, 2012. On March 12, 2015, Dukes and another Hillside member possessed with intent to distribute two baggies of cocaine, and had a 9mm semi-automatic handgun that had been used by another Hillside member to shoot a rival Up Da Hill member on November 2, 2013.
Johnson was arrested for possessing a firearm on August 15, 2009, and posted videos on social media in which he identified himself as a Hillside member, and raps about other Hillside members and their activities, including dealing narcotics.
Dukes and the government have agreed that if the Court accepts the plea agreement Dukes will be sentenced to 23 years in federal prison. Johnson and the government have agreed that if the Court accepts his plea, Johnson will be sentenced to between 12 and 17 years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for Dukes and Johnson on June 17, 2019 at 9:30 a.m. and 10:30 a.m., respectively.
According to the ATF, a reward of $10,000 each is available for information leading to the arrest of the two fugitive defendants in this case, Travis Eugene Alewine, a/k/a Sticks, age 27; and Deaven Raeshawn Cherry, a/k/a Gotti, age 32, both of Baltimore, who are charged federally with drug and racketeering conspiracies, including murders. They are actively being sought by ATF Baltimore Special Agents and the U.S. Marshals Service. They should be considered armed and dangerous. Law enforcement believes they are likely still in the counties near Baltimore City, if not within the city itself. Anyone with information should contact ATF at (888) ATF-TIPS, [email protected], text “ATFBAL” to 63975, or contact ATF via the mobile reportit® app.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF, the Baltimore Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Patricia C. McLane and Michael C. Hanlon, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Thrice Deported, Dominican National Pleads Guilty to Illegal Reentry, Trafficking Heroin and FentanylRead the Press Release
PROVIDENCE – A Dominican national previously deported from the United States on three occasions pleaded guilty in U.S. District Court in Providence today to trafficking heroin and fentanyl, and illegal reentry into the United States, announced United States Attorney Aaron L. Weisman, Rhode Island State Police Superintendent James M. Manni, and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
According to information presented to the Court, members of the Rhode Island Fugitive Task Force, who were attempting to locate Juan Manu Pena-Zapata based on a federal arrest warrant issued in the Western District of Michigan on a charge of using a false social security number, pulled over his a vehicle in Providence on September 18, 2018. After placing Pena-Zapata in custody, agents searched his vehicle. Inside a center console agents found three plastic bags containing controlled substances, later determined by the Rhode Island Department of Health to contain 4.89g of fentanyl, 5.00g of heroin, and 29.77g of fentanyl.
A follow-up investigation by the Fugitive Task Force and Homeland Security Investigations determined that Pena-Zapata, a native and citizen of the Dominican Republic, was previously deported from the United States on June 28, 2002; April 9, 2008; and April 7, 2010.
Appearing today before U.S. District Court Judge John J. McConnell, Jr., Pena-Zapata, 39, of Providence, pleaded guilty to knowingly and intentionally possessing with intent to distribute a mixture of heroin and fentanyl, and illegal reentry into the United States. He pleaded guilty on November 16, 2018, to the charge of using a false social security number brought by the United States Attorney's Office for the Western District of Michigan.
He is scheduled to be sentenced in both cases by U.S. District Court Judge John J. McConnell, Jr., on June 25, 2019.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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Texas Man Sentenced to 22 Years in Prison in Idaho for Sexual Exploitation of a ChildRead the Press Release
POCATELLO – John Alan Mahler, 37, of College Station, Texas, was sentenced today in U.S. District Court to 22 years in prison followed by 15 years supervised release, for sexual exploitation of a child, U.S. Attorney Bart M. Davis announced. Mahler was sentenced by U.S. District Court Judge B. Lynn Winmill. Mahler pleaded guilty on January 8, 2019.
According to court records, between June and October 2017, Mahler communicated with a 15-year old minor child from Idaho. He used a variety of internet-based communication platforms, including Google Hangouts and Kik Messenger. During the online communications, Mahler sent numerous messages attempting to persuade, induce, and entice the minor child to engage in sexual activity. During the course of the communications, Mahler engaged in video calls with the minor child and instructed the child to engage in sexually explicit conduct. Additionally, during the video calls, Mahler exposed his genitalia to the minor child.
At sentencing, Judge Winmill ordered Mahler to forfeit the laptop computer and cell phones used in the commission of the offense. As a result of his conviction, Mahler will be required to register as a sex offender.
The case was investigated by Homeland Security Investigations in Idaho Falls and the Pocatello Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Statement from Attorney General William P. Barr on the Department of State Designating the Islamic Revolutionary Guard Corps as a Foreign Terrorist OrganizationRead the Press Release
Today, Attorney General William P. Barr issued the following statement:
"Today, the Secretary of State announced that he intends to designate the Islamic Revolutionary Guard Corps (IRGC) as a Foreign Terrorist Organization (FTO) under Section 219 of the Immigration and Nationality Act. After the FTO designation takes effect, any person will be prohibited from knowingly providing material support or resources, as defined under the law, or attempting or conspiring to do so, to the IRGC. The IRGC's active support for terrorism is unacceptable, and the Department of Justice continues to support the administration's efforts to hold the Iranian regime accountable for its actions."
Springfield Man Sentenced to 18 Years for Heroin TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man has been sentenced in federal court for possessing heroin to distribute.
Danny R. Jones, 37, was sentenced by U.S. District Judge Roseann Ketchmark on Friday, April 5, to 18 years in federal prison without parole.
On June 27, 2018, Jones pleaded guilty to possessing heroin with the intent to distribute.
Law enforcement officers, prior to executing a search warrant, established surveillance of Jones’s residence on May 10, 2016. Officers saw Jones leave his residence, driving a Ford Taurus. An officer stopped the vehicle for an improper license plate and arrested Jones, who was driving while having a revoked driver’s license. The officer searched the vehicle and found a diaper bag on the passenger-side rear seat. Inside the diaper bag were several clear plastic bags that contained a total of 190 grams of heroin.
Jones is one of eight defendants charged in this case, all of whom have pleaded guilty, and is the final defendant to be sentenced.
This case was prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration and the Springfield, Mo., Police Department.