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Monday 25 February 2019
Claremore Man Sentenced to 30 Years in Prison for Sexually Exploiting a ChildRead the Press Release
A 25-year-old Claremore man has been ordered to federal prison following his conviction of one count of sexual exploitation of a child, announced U.S. Attorney Trent Shores. Zachary Newberry pleaded guilty Nov. 20, 2018.
Today, U.S. District Judge John E. Dowdell, sentenced Newberry to 30 years in prison. Newberry will serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
“Project Safe Childhood prosecutions are in full effect here in northeastern Oklahoma thanks to the partnership between TPD’s Cyber Crimes Unit and federal prosecutors. If you prey on children, we will find you, prosecute you and hold you accountable for your actions against the most vulnerable members of our community,” said U.S. Attorney Trent Shores. “Tulsa’s cyber detectives do excellent work to hunt down and identify child predators lurking about the internet. Our federal prosecutors then bring them to justice in a court of law.”
On July 30, the Tulsa Police Department received Newberry’s phone in an anonymous package, which was accompanied by a note stating the phone contained child pornography. Detectives from the police department’s Cyber Crimes Unit forensically examined the phone and discovered that it had been used to film a single video of child pornography. Other information recovered from the phone led detectives to Newberry, who eventually confessed to filming himself sexually abusing the adolescent victim.
Newberry 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 Tulsa Police Department investigated the crime. Assistant U.S. Attorney Christopher J. Nassar prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Choctaw Man Sentenced to 132 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Anton Grguric Jr., age 46, of Choctaw, Oklahoma, was sentenced to 132 months imprisonment and 5 years of supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2. The charges arose from an investigation by the Sallisaw Police Department, the Sequoyah County Sheriff’s Office, and the Drug Enforcement Administration.
The Indictment alleged that on or about February 6, 2017, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “Disrupting supply chains that distribute Methamphetamine and other dangerous drugs for drug trafficking organizations is a priority of the Department of Justice. Most communities have felt the devastating impact that Meth has on individuals and families. We must continue to be diligent in our efforts to bring to justice those that have no regard for the harm they are delivering to the cities and towns across the country.”
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. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
California Felon Sentenced for Illegal Possession of Firearm at Juneau AirportRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Brent Ernst Hansen, 42, of Indio, California, was sentenced in Juneau by Chief U.S. District Judge Timothy M. Burgess to serve 34 months in federal prison, followed by three years of supervised release, for illegally possessing a firearm as a convicted felon.
According to court documents, on Oct. 16, 2017, Hansen was trying to clear airport security at Juneau International Airport, with a backpack that contained a loaded Glock 19, 9mm pistol. TSA recognized a suspicious object as Hansen placed his bag through the X-Ray machine. When confronted by law enforcement, Hansen claimed he forgot about the firearm, and when asked about his legal status to possess a firearm, Hansen indicated that he did not know. A check of the firearm’s serial number revealed that the firearm was reported stolen.
Hansen was subsequently taken into custody, and a records check revealed that he has multiple felony convictions with the State of California for crimes including burglary, possession of a controlled substance, attempted grand theft, and felon in possession of a firearm.
The Juneau Police Department (JPD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jack Schmidt.
Bulldog Gang Member Sentenced to over 8 Years in Prison in Connection with Fresno ShootingRead the Press Release
FRESNO, Calif. — Alberto Perez, 31, of Fresno, was sentenced today by U.S. District Judge Lawrence J. O’Neill to eight years and four months in prison for being a felon in possession of a firearm and ammunition, U.S. Attorney McGregor W. Scott announced.
According to court documents, on June 26, 2017, while riding in a car in the area of Highway 99 and Ventura, Perez fired shots at a car, intending to hit an occupant inside the vehicle. Perez later discussed the shooting in a call with Carlos Montano, who is charged and has pleaded guilty to drug trafficking, firearms, and sex trafficking offenses in a related criminal case. Agents monitoring the intercepted communications were able to further connect Perez to the shooting using various investigative techniques. In September, 2017, investigators obtained a search warrant and found ammunition at Perez’s residence.
The charges are the product of an investigation by the DEA, FBI, HSI, ATF, the Fresno Police Department, the Fresno County Sheriff’s Office, and the Multi-Agency Gang Enforcement Consortium (MAGEC), with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Kimberly A. Sanchez and Jeffrey Spivak are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. 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 drug supply.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Buffalo Man Pleads Guilty to Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Antonio Broadus, 33, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute, and distribution of, butyryl fentanyl. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on February 11, 2018, an individual working for the Drug Enforcement Administration arranged to purchase five grams of fentanyl from the defendant. The following day, the individual met up with Broadus in the parking lot of a retail store on Jefferson Avenue in Buffalo. The two exchanged $420 for the five grams of fentanyl. In addition, the defendant also sold another five grams of fentanyl to a separate individual working with the DEA on January 29, 2018.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Office.
Sentencing is scheduled for June 12, 2019, at 12:30 p.m. before Judge Arcara.
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Buffalo Man Indicted on Cocaine and Crack Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Derrius Cunningham, a/k/a Baby, 41, of Buffalo, NY, with conspiracy to distribute and distribution of cocaine and crack cocaine, and maintaining a drug-involved premises. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorneys Charles J. Volkert, Jr. and Brendan T. Cullinane, who are handling the case, stated that according to the indictment, between 2012 and February 20, 2019, the defendant conspired with others to distribute cocaine and crack cocaine in the Box Avenue and Moselle Street area of Buffalo. The indictment also accuses Cunningham of using the residence at 304 Moselle Street, and two businesses, LaPearlaboo’s Bar and Jeoni’s Wingstop, in furtherance of his drug trafficking activities.
The defendant was arraigned before U.S. Magistrate Judge Michael J. Roemer and was released on conditions.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department, under the direction of Chief James Michel; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the New York State Police, under the direction of Major Edward Kennedy; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Boise Jury Finds David William Fischer Guilty of Drug TraffickingRead the Press Release
BOISE – U.S. Attorney Bart M. Davis announced today that a federal jury sitting in Boise convicted David William Fischer, 33, of possession of over five grams of methamphetamine with intent to distribute, unlawful possession of firearms, and possession of firearms in furtherance of drug trafficking. The trial began on February 19, 2019, and concluded on Friday evening when the jury returned their verdicts. The case was tried before U.S. District Judge B. Lynn Winmill.
According to court records, on September 26, 2017, the U.S. Marshals Service Greater Idaho Fugitive Task Force (GIFT) and the Ada County Sheriff’s Office Anti-Crime Team in Our Neighborhoods (ACTION) team were executing an arrest warrant for Fischer when officers discovered him in the Red Lion Hotel, in downtown Boise. After a forty-five minute standoff, Fischer was arrested without incident and found in possession of two handguns and approximately forty-two grams of methamphetamine.
Sentencing is set for May 21, 2019, before Judge Winmill at the federal courthouse in Boise. Possession of methamphetamine with intent to distribute is punishable by at least five years, up to 40 years, in prison, a $5,000,000 fine, and four years of supervised release. Unlawful possession of a firearm is punishable by up to ten years imprisonment, a $250,000 fine and up to three years of supervised release. Possession of a firearm in furtherance of a drug trafficking crime is punishable by a minimum of five years in prison, a $250,000 fine and five years of supervised release.
This case was investigated by the U.S. Marshals Service Greater Idaho Fugitive Task Force, the Garden City Police Department, the Ada County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms & Explosives.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. 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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Blair County Man Stole $50K in U.S. Railroad Retirement BenefitsRead the Press Release
JOHNSTOWN, Pa. - A resident of Roaring Springs, Pa., pleaded guilty in federal court to a charge of theft of government funds, United States Attorney Scott W. Brady announced today.
Glenn P. Rhykerd, 68, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from Jan. 1, 2015, to May 31, 2016, Rhykerd did receive and convert falsely to his own use a total of $50,985.21 in United States Railroad Retirement Board disability payments made to him to which he was not entitled.
Judge Gibson scheduled sentencing for June 5, 2019, at 1 p.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The United States Railroad Retirement Board, Office of Inspector General, conducted the investigation that led to the prosecution of Rhykerd.
Berkeley County man sentenced for illegal gun possessionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Christopher Wade Rebish, of Martinsburg, West Virginia, was sentenced today to 96 months incarceration for having a machine gun, United States Attorney Bill Powell announced.
Rebish, age 30, pled guilty to one count of “Illegal Possession of Machine Gun” in October 2018. Rebish admitted to having a 5.7X28 mm caliber machine gun in Berkeley County in March 2017.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Sean Michael Placko, of Hedgesville, West Virginia, was sentenced today to 60 months for a firearms conspiracy, United States Attorney Bill Powell announced.
Placko, age 43, pled guilty to one count of “Conspiracy” in November 2018. Placko admitted to participating in a conspiracy to purchase and transfer firearms out of state and to a prohibited person. The crime took place from October 2017 to February 2018 in Berkeley County and elsewhere.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S District Judge Gina M. Groh presided.
Barboursville Woman Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Barboursville woman pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Elizabeth Powers, 29, entered a guilty plea to an indictment charging her with possession with the intent to distribute 500 grams or more of cocaine. The Kenova Police Department conducted the investigation.
“The highway interdiction efforts of our law enforcement partners keep a significant amount of illicit drugs from ever making it into our communities,” said United States Attorney Mike Stuart. “I applaud the officers who do this dangerous but vital work.”
Powers admitted that on June 14, 2018, she was pulled over on I-64 in Wayne County. Officers found a black bag in her vehicle that contained one kilogram of cocaine. She told officers she intended to sell the cocaine for money.
Powers faces between five and forty years in prison when she is sentenced on June 3, 2019.
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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Bank Teller in Leavenworth Sentenced for EmbezzlementRead the Press Release
KANSAS CITY, KAN. – A former bank teller who paid back the money she embezzled from a Leavenworth savings and loan was sentenced Monday to two years on federal supervised release, U.S. Attorney Stephen McAllister said.
Theresa Williams, 49, Leavenworth, Kan., pleaded guilty to one count of theft by a bank employee. In her plea, she admitted she embezzled $13,000 from Mutual Savings Association in Leavenworth. To cover up the crime, she made false entries in bank reports.
McAllister commended the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Atwater Man Pleads Guilty to Offenses Related to the Sexual Exploitation of Children Through Social MediaRead the Press Release
FRESNO, Calif. — Nikko Adolfo Perez, 26, of Atwater, pleaded guilty today to the sexual exploitation of children, coercion and enticement of a minor, and receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
According to a criminal complaint, Perez, using the Instagram screen name captainamerica272018, victimized two boys, ages 8 and 10, in Utah by coercing them to create and send him images of them engaged in sexually explicit conduct. Perez offered to pay the boys with Google Play credits if they engaged in requested sexual acts or poses, and when one of the victims said he would call 911, Perez threatened to disseminate the sexually explicit images of the victims. He also threatened to harm family members of the victims.
Perez admitted in a plea agreement that he also used Skype, Kik, Discord, Snapchat, and LiveMe to communicate with between 50 and 100 minors for the purpose of soliciting sexually explicit images of those minors. He admitted that he persuaded the victims to pose nude or engage in sexually explicit activities, sometimes with other minors. He admitted that he often paid victims to engage in this conduct, and he sent some of the material that he had requested to other people.
Perez is scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O’Neill on May 20, 2019. Perez faces the following possible penalties: a mandatory minimum term of 15 years and a maximum of 30 years in prison for the sexual exploitation count; a mandatory minimum of 10 years to a maximum of life in prison for the coercion and enticement count; and a between 5 and 20 years in prison for the one count of receipt of child pornography. For all counts there is a potential $250,000 fine and a lifetime term of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Salt Lake City Police Department and the Federal Bureau of Investigation offices in Salt Lake City, Utah and Fresno. Assistant U.S. Attorney David Gappa is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Alleged MS-13 Gang Member Arrested in PensacolaRead the Press Release
PENSACOLA, FLORIDA – David Ernesto Nolasco Soriano, 31, of El Salvador, made a first appearance and had a detention hearing on Friday, February 22, 2019, in Pensacola in the U.S. District Court for the Northern District of Florida. United States Attorney Lawrence Keefe of the Northern District of Florida made the announcement.
Nolasco Soriano was a fugitive who was located in Pensacola and arrested on February 20 at 3:10 p.m. near the Cordova Mall by the FBI and the Pensacola Police Department. Nolasco Soriano was working in Pensacola and Destin and has a Pensacola mailing address. United States Magistrate Judge Charles J. Kahn Jr. detained Nolasco Soriano and ordered the U.S. Marshals to transport him back to Maryland to await trial. Assistant United States Attorney and Border Security Coordinator James M. Ustynoski handled the detention hearing in the Northern District of Florida.
U.S. Attorney Keefe said: “This case is an example of law enforcement agencies, prosecutors, and Organized Crime Drug Enforcement Task Forces throughout the nation working together to dismantle dangerous gangs. My office is committed to pursuing a safer North Florida, Maryland, and all communities in between.”
Assistant United States Attorney Kenneth S. Clark in the District of Maryland is prosecuting the case. The District of Maryland charged Nolasco Soriano with:
- Conspiracy to participate in a racketeering enterprise;
- Conspiracy to murder, maim, assault with a dangerous weapon, and assault resulting in serious bodily injury in aid of racketeering; and
- Attempted murder, maiming, and assault with a dangerous weapon resulting in serious bodily injury in aid of racketeering.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Friday 22 February 2019
Yuba City Man Sentenced to 20 Years in Prison for Child Pornography OffenseRead the Press Release
SACRAMENTO, Calif. — Chad Carl Jaycox, 28, of Yuba City, was sentenced today to 20 years in prison to be followed by 25 years of supervised release for receiving images of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Jaycox received the images between April 2011 and September 2013. Jaycox was convicted in 2010 of unlawful sex with a minor, and he was on probation for that offense when federal agents executed a search warrant at his residence in September 2013. Upon the discovery of child pornography, Jaycox was arrested by state law enforcement agents for a violation of his probation.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Winnebago Man Sentenced as Habitual OffenderRead the Press Release
James Levering, 46, of Winnebago was sentenced today in federal court in Omaha for domestic assault by a habitual offender. The Honorable Robert F. Rossiter, Jr. sentenced Levering to 25 months’ imprisonment. After his release from prison, Levering will begin a three-year term of supervised release.
On April 22, 2018, on the Winnebago Indian Reservation, Levering struck his wife in the chest with a board. At the time of the assault Levering was the subject of no-contact orders protecting his wife from him. Prior to this assault, Levering had been convicted in South Dakota and Iowa of assaulting a domestic partner.
This case was investigated by the Federal Bureau of Investigation and the Winnebago Police Department.
Washington man sentenced to 10 years in child porn caseRead the Press Release
MISSOULA—A Washington man who admitted attempting to view child pornography on a computer while riding a bus was sentenced today to a mandatory minimum 10 years in prison and a lifetime of supervised release, U.S. Attorney Kurt Alme said.
Eric Franklin Rosser, 67, of Ellensburg, Wash., pleaded guilty in October to accessing with intent to view child pornography.
U.S. District Judge Donald W. Molloy presided. Molloy also fined Rosser $10,000, levied a total of $5,000 in special assessments and ordered Rosser’s computer to be forfeited.
An investigation began on July 22, 2017, when a passenger on a commercial bus heading east on Interstate 90 near Butte noticed that Rosser, who was seated in front of him, was viewing child porn on his laptop computer. When the bus arrived in Billings, the passenger approached Rosser about the video, and Rosser responded, “Leave me alone. I know I have a problem.”
Law enforcement was called to the Billings bus station, and officers questioned Rosser. Rosser admitted he was watching child porn that was being sold online. He also said he had $10,000 cash strapped to each leg and another $50,000 cash in his bags. Officers found the money along with $2,402 that was in Rosser’s wallet. Rosser admitted to emptying his bank account before leaving Washington.
Assistant U.S. Attorney Zeno Baucus prosecuted the case, which was investigated by the Billings Police Department.
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U.S. Seeks to Recover Approximately $38 Million Allegedly Obtained from Corruption Involving Malaysian Sovereign Wealth FundRead the Press Release
The Justice Department announced today the filing of civil forfeiture complaints seeking the forfeiture and recovery of approximately $38 million in assets allegedly associated with an international conspiracy to launder funds misappropriated from 1Malaysia Development Berhad (1MDB), a Malaysian sovereign wealth fund. Combined with civil forfeiture complaints filed in July 2016 seeking more than $1 billion in assets, and civil forfeiture complaints filed in June 2017 seeking approximately $540 million in assets, this case represents the largest action brought under the Department’s Kleptocracy Asset Recovery Initiative. Assets now subject to forfeiture in this case total approximately $1.7 billion.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division and Chief Don Fort of the IRS Criminal Investigation (IRS-CI) made the announcement.
According to the complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people.
“The complaints filed today demonstrate the Department of Justice’s steadfast commitment to recovering assets traceable to the alleged multi-billion dollar looting of Malaysia’s sovereign wealth fund,” said Assistant Attorney General Benczkowski. “The Criminal Division and our law enforcement partners are committed to protecting the U.S. financial system and ensuring that the proceeds of overseas corruption and other criminal conduct find no safe haven here.”
“These new lawsuits target assets collected by corrupt officials and their associates through a massive scheme that stole billions of dollars from the people of Malaysia and laundered the proceeds across the world,” said U.S. Attorney Nick Hanna. “Through a series of cases filed over the past three years, we have pursued a wide variety of assets purchased with stolen 1MDB funds, and so far we have successfully forfeited hundreds of millions of dollars. Collectively, these cases send a strong message that the United States cannot be used as a safe haven or a conduit for money pilfered by corrupt officials.”
“Today’s announcement is a testament to the FBI’s relentless effort to investigate kleptocracy and hold corrupt foreign officials accountable,” said FBI Assistant Director Johnson. “At the onset of this investigation, we promised to work with our foreign and domestic partners to identify and return stolen assets to the Malaysian people. This filing demonstrates our unwavering commitment to keep that promise. We want to thank our partners, both domestic and foreign, for their hard work in helping to bring justice for the Malaysian people. The recovery of these assets is another step in that direction.”
“The investigation into the misappropriation of the 1MDB funds represents a model for international cooperation in significant cross-border money laundering matters, and sends a message that criminals cannot evade law enforcement authorities simply by laundering money through multiple jurisdictions and through a web of shell corporations,” said IRS-CI Chief Fort. “We are proud of the investigative work on this case and the work of our fellow law enforcement agencies in this and other complex financial investigations.”
As alleged in the complaints, the members of the conspiracy – which included officials at 1MDB, their relatives and other associates – diverted more than $4.5 billion in 1MDB funds. Using fraudulent documents and representations, the co-conspirators allegedly laundered the funds through a series of complex transactions and shell companies with bank accounts located in the U.S. and abroad. These transactions allegedly served to conceal the origin, source and ownership of the funds, and ultimately passed through U.S. financial institutions to then be used to acquire and invest in assets located in the U.S. and overseas.
As alleged in the earlier complaints, in 2009, 1MDB officials and their associates embezzled approximately $1 billion that was supposed to be invested to exploit energy concessions purportedly owned by a foreign partner. Instead, the funds were allegedly transferred through shell companies and were used to acquire a number of assets, as set forth in the complaints. The complaints also allege that the co-conspirators misappropriated close to $1.4 billion in funds raised through bond offerings in 2012, and more than $1.2 billion following another bond offering in 2013. The complaints also allege that in 2014, the co-conspirators misappropriated approximately $850 million in 1MDB funds under the guise of repurchasing certain options that had been given in connection with a guarantee of the 2012 bonds.
The complaints filed today in the Central District of California identify additional assets traceable to the 2012 and 2013 bond offerings. These assets include luxury real estate in London, proceeds from the sale of luxury real estate in New York City, and converted equity in a facilities management company headquartered in Kentucky.
The FBI’s International Corruption Squads in New York City and Los Angeles and the IRS-CI are investigating the case. Deputy Chief Woo S. Lee and Trial Attorneys Kyle R. Freeny, Jonathan Baum, Barbara Levy and Joshua L. Sohn of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys John Kucera and Michael R. Sew Hoy of the Central District of California are prosecuting the case. The Criminal Division’s Office of International Affairs is providing substantial assistance.
The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg, and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the U.S. should contact federal law enforcement or send an email to [email protected] (link sends e-mail) or https://tips.fbi.gov/.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the United States.
U.S. Seeks to Recover Approximately $38 Million Allegedly Obtained from Corruption Involving Malaysian Sovereign Wealth FundRead the Press Release
LOS ANGELES – The Justice Department announced today the filing of civil forfeiture complaints seeking the forfeiture and recovery of approximately $38 million in assets allegedly associated with an international conspiracy to launder funds misappropriated from 1Malaysia Development Berhad (1MDB), a Malaysian sovereign wealth fund. Combined with civil forfeiture complaints filed in July 2016 seeking more than $1 billion in assets, and civil forfeiture complaints filed in June 2017 seeking approximately $540 million in assets, this case represents the largest action brought under the Department’s Kleptocracy Asset Recovery Initiative. Assets now subject to forfeiture in this case total approximately $1.7 billion.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division and Chief Don Fort of the IRS Criminal Investigation (IRS-CI) made the announcement.
According to the complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people.
“These new lawsuits target assets collected by corrupt officials and their associates through a massive scheme that stole billions of dollars from the people of Malaysia and laundered the proceeds across the world,” said U.S. Attorney Nick Hanna. “Through a series of cases filed over the past three years, we have pursued a wide variety of assets purchased with stolen 1MDB funds, and so far we have successfully forfeited hundreds of millions of dollars. Collectively, these cases send a strong message that the United States cannot be used as a safe haven or a conduit for money pilfered by corrupt officials.”
“The complaints filed today demonstrate the Department of Justice’s steadfast commitment to recovering assets traceable to the alleged multi-billion dollar looting of Malaysia’s sovereign wealth fund,” said Assistant Attorney General Benczkowski.“The Criminal Division and our law enforcement partners are committed to protecting the U.S. financial system and ensuring that the proceeds of overseas corruption and other criminal conduct find no safe haven here.”
“Today’s announcement is a testament to the FBI’s relentless effort to investigate kleptocracy and hold corrupt foreign officials accountable,” said FBI Assistant Director Johnson. “At the onset of this investigation, we promised to work with our foreign and domestic partners to identify and return stolen assets to the Malaysian people.This filing demonstrates our unwavering commitment to keep that promise. We want to thank our partners, both domestic and foreign, for their hard work in helping to bring justice for the Malaysian people. The recovery of these assets is another step in that direction.”
“The investigation into the misappropriation of the 1MDB funds represents a model for international cooperation in significant cross-border money laundering matters, and sends a message that criminals cannot evade law enforcement authorities simply by laundering money through multiple jurisdictions and through a web of shell corporations,” said IRS-CI Chief Fort. “We are proud of the investigative work on this case and the work of our fellow law enforcement agencies in this and other complex financial investigations.”
As alleged in the complaints, the members of the conspiracy – which included officials at 1MDB, their relatives and other associates – diverted more than $4.5 billion in 1MDB funds. Using fraudulent documents and representations, the co-conspirators allegedly laundered the funds through a series of complex transactions and shell companies with bank accounts located in the U.S. and abroad. These transactions allegedly served to conceal the origin, source and ownership of the funds, and ultimately passed through U.S. financial institutions to then be used to acquire and invest in assets located in the U.S. and overseas.
As alleged in the earlier complaints, in 2009, 1MDB officials and their associates embezzled approximately $1 billion that was supposed to be invested to exploit energy concessions purportedly owned by a foreign partner. Instead, the funds were allegedly transferred through shell companies and were used to acquire a number of assets, as set forth in the complaints. The complaints also allege that the co-conspirators misappropriated close to $1.4 billion in funds raised through bond offerings in 2012, and more than $1.2 billion following another bond offering in 2013. The complaints also allege that in 2014, the co-conspirators misappropriated approximately $850 million in 1MDB funds under the guise of repurchasing certain options that had been given in connection with a guarantee of the 2012 bonds.
The complaints filed today in the Central District of California identify additional assets traceable to the 2012 and 2013 bond offerings. These assets include luxury real estate in London, proceeds from the sale of luxury real estate in New York City, and converted equity in a facilities management company headquartered in Kentucky.
The FBI’s International Corruption Squads in New York City and Los Angeles and the IRS-CI are investigating the case. Deputy Chief Woo S. Lee and Trial Attorneys Kyle R. Freeny, Jonathan Baum, Barbara Levy and Joshua L. Sohn of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys John Kucera and Michael R. Sew Hoy of the Central District of California are prosecuting the case. The Criminal Division’s Office of International Affairs is providing substantial assistance.
The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg, and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the U.S. should contact federal law enforcement or send an email to [email protected] (link sends e-mail) or https://tips.fbi.gov/.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the United States.
U.S. Attorney’s Office collects more than $4.8 million in civil, criminal actions for U.S. taxpayers in Fiscal Year 2018Read the Press Release
SHREVEPORT/LAFAYETTE/MONROE/ALEXANDRIA/LAKE CHARLES, La. – United States Attorney David C. Joseph announced today that the Western District of Louisiana collected $4,849,432 in criminal and civil actions in Fiscal Year 2018. Of this amount, $4,169,901 was collected in criminal actions and 679,530 was collected in civil actions.
Additionally, the Western District of Louisiana worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $83,116,403 in cases pursued jointly by these offices. Of this amount, $3,270 was collected in criminal actions and $83,113,133 was collected in civil actions. The district also handled $87,605 in asset forfeiture actions during FY 2018.
“I want to thank our staff in our civil and criminal divisions for their hard work on these cases and collecting monies owed to the United States and crime victims,” Joseph stated. “We will continue to work on a daily basis to locate and collect any and all money owed to taxpayers and to those whose lives have been impacted by crime.
The civil recoveries in the Western District of Louisiana include $82,319,000 in civil penalties for CITGO Petroleum Corporation’s gross negligence in discharging 2.2 million gallons of oil into U.S. waterways in violation of the Clean Water Act. Additionally, the District received $362,961 in restitution to be paid to the Internal Revenue Service from defendant Gary Scott in June of 2018. Scott was convicted of tax evasion and sentenced in 2013.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice,” said Director James A. Crowell, IV, Executive Office for U.S. Attorneys. “The money that we are able to recover for victims and this country as a whole is a direct result of their hard work.”
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, the Department of Education and the U.S. Department of Agriculture.
U.S. Attorney's Office to Sponsor 16th Annual Project Sentry Logo/Meme ContestRead the Press Release
COLUMBIA, South Carolina ---- The United States Attorney's Office is sponsoring its 16th Annual Project Sentry Logo/Meme Contest. The statewide contest welcomes students to illustrate how we can help prevent gun violence in our schools by designing a logo or meme for use on upcoming Project Sentry publications.
The contest is open to all South Carolina grade-school students and entries will be categorized into four grade divisions: K-2, 3-5, 6-8, and 9-12 grades. A winner will be selected from each of the four divisions, and each division winner will receive $50. An overall winning logo or meme will be chosen from the four division winners and will receive an additional $50 for a total of $100.
The winning entries will be selected by “The Insiders,” a select group of students from the South Carolina Department of Juvenile Justice, who travel throughout the state encouraging children and promoting community awareness of the consequences of juvenile crime. The South Carolina Law Enforcement Officers’ Association Foundation will be providing the awards to the winners.
Entries should be consistent with the theme "Preventing Gun Violence in Our Schools." The deadline for submissions is March 29, 2019. If your student is interested in participating, contact your local school as contest information has been sent to all South Carolina schools. Applications and contest rules may also be found on our website https://www.justice.gov/usao-sc/programs/ceasefire/project-sentry/contest-winners/contest-rules.
Project Sentry, which is part of the district's Project Safe Neighborhoods/Project CeaseFire initiative, is a vital step in strengthening our ability to prevent gun crimes among our young people and to ensure a safe learning atmosphere for our children. For more information on the Project Sentry program and to view winning logos from previous years, please visit http://www.justice.gov/usao/sc/programs/logowinners.html.
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Two-Time Felon Sentenced for Illegally Reentering the U.S.Read the Press Release
ALEXANDRIA, Va. – A Salvadoran national was sentenced today to 18 months in prison for illegally reentering the United States.
“Guevara-Paz was twice convicted of felony offenses, and reentered within months after his deportation as an aggravated felon,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This is a serious issue of public safety and national security, and we remain committed to prioritizing criminal immigration enforcement.”
According to court documents, Jaime Amilcar Guevara-Paz, 42, illegally entered the United States and was deported in April 2008 as an aggravated felon after being convicted for kidnapping in the third degree in Texas, as well as another felony charge in California. Guevara-Paz was removed from the United States twice before his reentry spurring the instant prosecution.
Following his second removal in 2009, Guevara-Paz returned yet again under a fictitious name and was found to be in the country illegally in August 2018 following his arrest in Fairfax County on unrelated state charges.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jeffrey M. Jacoff, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. The case was prosecuted by Special Assistant U.S. Attorneys Heather Call and Evan Clark, as well as Assistant U.S. Attorney Kimberly R. Pedersen.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-356.
Two Louisiana Tax Preparers Charged with Filing False IRS ReturnsRead the Press Release
WASHINGTON – Two St. John the Baptist Parish, Louisiana, residents were arrested today on an indictment charging them with conspiring to defraud the United States and aiding and assisting in the preparation of fraudulent tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.
As charged in the indictment, Michegel Butler and Brittany Riquel Patterson prepared false tax returns in 2013 for clients of Crown Tax Service in Kenner, Louisiana. Butler is the alleged owner of Crown Tax Service, and Patterson is a return preparer at Crown. As part of the scheme, Butler and Patterson allegedly falsified returns by including fraudulent business income and expenses, dependents, and dependent care expenses. They allegedly sought to substantiate these false items by having clients sign blank declarations of business income and expenses, and false receipts. The indictment charges that some clients also were encouraged to buy or sell the personal identification information of others to facilitate the false reporting of dependents on returns.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Butler and Patterson face a maximum sentence of five years in prison for the conspiracy charge, and three years for each count of aiding and assisting in the preparation of a fraudulent tax return. They also face substantial monetary penalties, supervised release, and restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Strasser commended Assistant United States Attorney Dall Kammer and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case. The case was investigated by special agents of IRS-Criminal Investigation.
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Two Louisiana Tax Preparers Charged with Filing False IRS ReturnsRead the Press Release
Two St. John the Baptist Parish, Louisiana, residents were arrested today on an indictment charging them with conspiring to defraud the United States and aiding and assisting in the preparation of fraudulent tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.
As charged in the indictment, Michegel Butler and Brittany Riquel Patterson prepared false tax returns in 2013 for clients of Crown Tax Service in Kenner, Louisiana. Butler is the alleged owner of Crown Tax Service, and Patterson is a return preparer at Crown. As part of the scheme, Butler and Patterson allegedly falsified returns by including fraudulent business income and expenses, dependents, and dependent care expenses. They allegedly sought to substantiate these false items by having clients sign blank declarations of business income and expenses, and false receipts. The indictment charges that some clients also were encouraged to buy or sell the personal identification information of others to facilitate the false reporting of dependents on returns.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Butler and Patterson face a maximum sentence of five years in prison for the conspiracy charge, and three years for each count of aiding and assisting in the preparation of a fraudulent tax return. They also face substantial monetary penalties, supervised release, and restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Strasser commended Assistant United States Attorney Dall Kammer and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case. The case was investigated by special agents of IRS-Criminal Investigation.
Two Delaware Men Plead Guilty to Sex Trafficking a 15-Year-Old GirlRead the Press Release
Baltimore, Maryland – Steven M. Williams, a/k/a “Brother Ray”, a/k/a “Ray,” age 39, formerly of Delaware, pleaded guilty today to sex trafficking of a child by force, fraud, and coercion. Also today, co-defendant Harry E. Rivers, a/k/a “Hakeem” and “Pots,” age 29, also of Delaware, pleaded guilty today to conspiracy to commit sex trafficking of a child, while a third co-defendant, Jessica L. Schaefer, a/k/a “Tutti,” age 24, of Pennsylvania, pleaded guilty to that same charge on January 10, 2019.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Matthew Donnelly of the Elkton Police Department.
“Human traffickers compel victims to work for little or no compensation, often using violence and threats and engaging in illegal activity such as prostitution,” said U.S. Attorney Robert K. Hur. “Through the Maryland Human Trafficking Task Force, local, state and federal law enforcement partners are working with non-profit organizations to help human trafficking victims and prosecute the traffickers. Working to end human trafficking is a priority for the Maryland U.S. Attorney’s Office.”
According to their plea agreements, Schaefer and the victim, Girl 1, engaged in commercial sex acts with men in Delaware. Girl 1 was 15 years old and a resident of Pennsylvania, but lived with her father in Delaware. Schaefer posted ads of herself for commercial sex purposes. Williams responded to one of the ads and determined that Schaefer and Girl 1 would work for him. Williams provided Schaefer and Girl 1 with crack cocaine and they were eventually in debt to Williams. Girl 1 and Schaefer then engaged in commercial sex acts to pay off their debt to Williams. Girl 1 and Schaefer gave any proceeds earned from performing commercial sex acts to Williams. To facilitate the commercial sex acts, Williams rented hotel rooms in his name or the names of men paying for the commercial sex acts, and Rivers provided narcotics to the females and their customers, and helped to arrange “dates” for the females.
In July 2017, Williams drove Girl 1 from Delaware to Elkton, Maryland, separating her from Schaefer. Girl 1 woke up in a motel in Elkton with another sex worker, AH. At Williams’ direction, AH posted an ad featuring a picture of Girl 1 on a website used to advertise and solicit for commercial sex, including the sexual exploitation of minors. While in Maryland, Girl 1 performed commercial sex acts and gave the monies she earned to Williams. Williams physically abused Girl 1 if he thought she was not giving him all the money she earned, and also displayed his firearm.
On July 13, 2017, Girl 1 attempted to leave and hid in AH’s hotel room. Williams, Rivers, and Schaefer traveled from Newark, Delaware to Elkton, to take Girl 1 back to Delaware, to ensure that she did not leave Williams’ employ. Williams and Rivers each had a firearm which they used to threaten AH, demanding that she produce Girl 1. Schaefer had a taser, which she ignited, barged into AH’s room, and took Girl 1 from the room against her will. The defendants drove Girl 1 back to Delaware so that she could continue to engage in commercial sex acts.
On July 14, 2017, AH reported the abduction of Girl 1 to law enforcement. Girl 1 was located and rescued in Newark, Delaware the next day, and the defendants were arrested.
As part of their plea agreements, the defendants will be required to register as sex offenders in the places where they reside, where they are employees, and where they are students, under the Sex Offender Registration and Notification Act (SORNA).
All three defendants face a maximum of life in prison. Chief U.S. District Judge James K. Bredar has scheduled sentencing for Rivers and Williams on April 26, 2019 at 2:00 p.m., and May 31, 2019 at 10:00 a.m., respectively. No date has been set for Schaeffer’s sentencing.
U.S. Attorney Robert Hur commended the FBI, the Elkton Police Department, the Newark (Delaware) Police Department, the Wilmington (Delaware) Police Department, the Cecil County Department of Social Services, the Cecil County State's Attorney's Office, and the Delaware Department of Justice for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Patricia C. McLane and Zachary A. Myers, who are prosecuting the case.
The U.S. Attorney’s Office for the District of Maryland (USAO-MD) maintains a robust human trafficking program, charging an average of ten trafficking defendants every year since 2009, in addition to dozens of defendants charged with child pornography offenses.
As one of the founding members of the Maryland Human Trafficking Task Force (MHTTF), the U.S. Attorney’s Office leads the Task Force’s outreach and enforcement efforts. MHTTF is a statewide coalition of prosecutors, police, and community organizations that work to identify, rescue and rehabilitate victims of human trafficking while investigating and prosecuting offenders. Learn more about the Task Force’s work at http://www.mdhumantrafficking.org.
Additional information about the USAO’s efforts to end human trafficking follows.
- Human Trafficking Coordinator and Maryland Human Trafficking Task Force (MHTTF)
Since 2007, the USAO-MD has designated an Assistant U.S. Attorney (AUSA) to serve as Human Trafficking Coordinator for the district. This AUSA is the point of contact for law enforcement agencies and state prosecutors for human trafficking cases, and serves as the chair of the MHTTF. In addition, the USAO-MD Law Enforcement Coordinator, who has been involved in MHTTF since its inception, serves as a point of contact for outreach, training, and enforcement efforts through the MHTTF.
Led by the U.S. Attorney’s Office, the Task Force serves to coordinate activities, develop policy, and implement strategic plans to combat human trafficking in Maryland. The MHTTF maintains five active sub-committees: Law Enforcement, Victim Services, Training, Public Outreach and Legislative.
Since its inception in 2007, the MHTTF has sought to raise public awareness and implement best practices in investigations, prosecutions, victim identification, and victim service response. Members have customized practices for the unique circumstances that Maryland faces both as an originating point and as a throughway for human trafficking. Law enforcement, prosecutors, and providers work together on the MHTTF to take a victim-centered approach: freeing the victim from oppression and rehabilitating the victim as a witness in order to bring traffickers to justice.
The USAO-MD Human Trafficking and Law Enforcement Coordinators also regularly consult with federal, state, and local law enforcement agencies regarding their current activities in investigating human trafficking crimes.
In addition, USAO-MD in coordination with the MHTTF offers or arranges a wide variety of training to educate law enforcement about best practices in investigating human trafficking. In 2018, the USAO-MD delivered eight law enforcement trainings to more than 490 officers and participated in or sponsored six public awareness events reaching more than 500 community members. The advanced investigators training, held in April 2018, trained 160 law enforcement professionals; and the human trafficking professionals training, held in October 2018 trained 155 human trafficking professionals, to include members of government and non-government agencies, and service providers.
Prosecution of Human Trafficking Cases
In 2018, USAO-MD charged 15 defendants with trafficking offenses, including the defendants who pleaded guilty today. Other notable indictments include the following:
United States v. Rody L. Bowden: On May 16, 2018, Rody L. Bowden, of Prince George’s County, Maryland, was indicted on charges of sex trafficking of a minor, sexual exploitation of a minor, and transportation of child pornography. Bowden was also charged with committing these offenses as a registered sex offender. According to the four-count indictment, beginning in December 2016, Bowden engaged in commercial sex acts with a 14-year-old ninth-grade student and took video of the sexually explicit conduct, later e-mailing a copy of the video to another account that he controlled. Bowden is a registered sex offender, stemming from two convictions for sex offenses in Maryland. If convicted, Bowden faces a mandatory 10 years in prison and a maximum of life in prison, for sex trafficking of a minor; a mandatory 35 years in prison and a maximum of life in prison, for sexual exploitation of a minor; and a mandatory 15 years and a maximum of 40 years in prison, for transportation of child pornography.
United States v. Ryan Russell Parks: On June 7, 2018, Ryan Russell Parks, a/k/a “Dinero,” was indicted on two counts of sex trafficking of a minor and one count of use of interstate facilities to promote an enterprise involving prostitution. According to the indictment, Parks had a 16-year-old female and a 15-year-old female engage in commercial sex acts with customers. The indictment alleges that Parks would routinely receive and attempt to receive the monies that the girls earned through commercial sex acts. Parks faces a mandatory 10 years in prison and up to life in prison for each count of sex trafficking of a minor, and a maximum of five years in prison for use of an interstate facility to promote prostitution.
United States v. Reginald Parker and Robin Tarburton: On December 20, 2018, Reginald Parker and Robin Tarburton were indicted on charges of conspiracy to commit sex trafficking of a minor and sex trafficking of a minor. Parker was also charged with attempted enticement of a minor. According to the indictment, Parker engaged in a sex act with the 15-year-old minor, in exchange for money and drugs provided to Tarburton. Additionally, the indictment alleges that Parker exchanged various sexually explicit electronic mail and text messaging communications with the girl that culminated in Parker and the girl engaging in prostitution and criminal sexual activity. Parker and Tarburton each face a mandatory 10 years in prison and up to life in prison for the conspiracy and for sex trafficking of a minor.
Additionally, USAO-MD secured guilty pleas and/or sentences in the following cases:
United States v. Roland Akum: Roland Chick Akum, formerly of Silver Spring, Maryland, pleaded guilty to two counts of sex trafficking of a minor and was sentenced to 12 years in federal prison. According to his plea agreement, between June and August 2017, Akum, a/k/a “Rayne,” transported two minor females, 15 and 17 years old, respectively, to a motel in College Park, Maryland, in order to engage in commercial sex acts, used a website that marketed commercial sex to advertise the girls, and kept a portion of the proceeds that customers paid the girls for commercial sex acts.
United States v. Al Samuel Lawson: On April 20, 2018, Al Samuel Lawson, of Baltimore, Maryland was sentenced to 14 years in federal prison for sex trafficking of a minor related to the trafficking of two minor females, 15 and 16 years old, respectively, for prostitution in Maryland.
United States v. Richard Small: On June 5, 2018, Richard Dane Small, a/k/a “Maserati,” of Hagerstown, was sentenced to 16 years in prison for sex trafficking of a minor. According to his plea agreement, in June 2015, Small transported a 15-year-old girl and a 17-year-old girl from Pennsylvania to Maryland with the intent that each minor victim engage in prostitution, and received money that each minor victim made.
United States v. Chukwuemeka Ekwonna: On January 29, 2019, Chukwuemeka Ekwonna, of Glenn Dale, Maryland, pleaded guilty to two counts of sex trafficking of a minor. Between October 2016 and February 2017, Ekwonna, who at the time was a Metropolitan Police Department (MPD) officer in Washington, D.C., engaged in sexual conduct with two girls, who were 14 and 15 years old, in exchange for money. Ekwonna faces a minimum of 10 and a maximum of 20 years in prison. He also will be required to register as a sex offender. Sentencing is scheduled for May 10, 2019 at 12:00 p.m.
The USAO-MD has many resources deployed in the fight against human trafficking, aimed at investigating and prosecuting human trafficking cases; providing support and services for victims; engaging in outreach to law enforcement, prosecutors, non-governmental organizations, and other partners; and educating the community. We will continue to prioritize the investigation and prosecution of human trafficking cases to end this harmful crime.
- Human Trafficking Coordinator and Maryland Human Trafficking Task Force (MHTTF)
Tulsa Man Convicted for Child Pornography, Enticing Minors and Trying to Hide His CrimesRead the Press Release
TULSA, Okla. – A 28-year-old Tulsa man pleaded guilty Friday in U.S. District Court to distribution of child pornography, enticing a minor and tampering with a witness and evidence, announced U.S. Attorney Trent Shores.
In his plea agreement, Levi William Welker admitted that in February 2016 he shared child pornography using a bit torrent file sharing network. Investigators initially discovered 68 images on a torrent file which was traced to Welker’s IP address. During a search, investigators located more than 6,200 image and video files of child pornography.
Welker also admitted that he later used multiple social media apps and communications devices to manipulate and lure two minor children to engage in sexual activity with him. Welker pretended to be 16 years old and provided the victims with cell phones in order to secretly communicate. When one of the children’s parents became suspicious, they reported Welker to the Tulsa Police Department. After the investigation commenced, police discovered that Welker messaged one of the victim’s social media accounts, asking her to lie to police and destroy evidence. He also destroyed other digital evidence in an effort to thwart the investigation.
“Levi Welker criminally exploited the trusting nature of children to fulfill his perverse sexual gratifications. He groomed and manipulated young victims using nearly a dozen different phone apps to share sexually explicit photographs,” said U.S. Attorney Shores. “Welker attempted to hide his crimes by remotely deleting evidence from his phone. Thanks to the watchful eye of concerned parents and the dedicated work of law enforcement, Welker’s heinous acts were revealed.”
U.S. District Judge Claire V. Eagan accepted Welker’s guilty plea and set sentencing for May 30, 2019. At that time, he faces a stipulated sentencing range of 200 to 240 months imprisonment and a maximum fine of $250,000. Welker remains in custody while awaiting sentencing.
The FBI and Tulsa Police Department investigated these crimes. Assistant U.S. Attorney Christopher J. Nassar is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Three South Florida Residents Arrested on Federal Healthcare Fraud ChargesRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health & Human Services, Miami Regional Office, Office of Inspector General (HHS-OIG), announced that Jose Antonio Mesa Sixto, 53, of Miami, Llunaisy Acanda, 41, of Miami Gardens, and Ania Hans, 41, of Miami, were arrested on charges relating to healthcare fraud and payment and receipt of healthcare kickbacks.
The Indictment, which was the basis for the defendants’ arrests, alleges that between August 4, 2014, and August 19, 2015, Mesa Sixto was the owner and operator of Nissi Home Health Services, Inc (“Nissi”), in Virginia Gardens, Florida. He is alleged to have paid kickbacks to Acanda and Hans in return for Medicare home health patient referrals to Nissi. Mesa Sixto is also charged with witness tampering. The indictment further alleges that between April 2012, and June 2015, Acanda, Hans, and others falsely certified therapy notes indicating that they provided therapy services to Medicare beneficiaries on behalf of Nissi through their companies, A&A Professional Therapy, St. Judges Staffing Group, Inc, and Krystal Rehabilitation Services Corp.
If convicted, Mesa Sixto faces a maximum statutory sentence of 5 years’ imprisonment for paying kickbacks and 20 years’ imprisonment for witness tampering. Acanda and Hans face a maximum statutory sentence of 5 years’ imprisonment for receiving kickbacks and 20 years’ imprisonment for healthcare fraud.
An indictment is only an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and HHS-OIG in this matter. The case is being prosecuted by Assistant U.S. Attorney Michael Gilfarb.
Texas Man Sentenced to Prison for Bank Fraud After Obtaining over $2 MillionRead the Press Release
LITTLE ROCK—A Texas man was sentenced today for defrauding an Arkansas bank by creating fraudulent invoices. Matthew Beasley, 47, of McKinney, Texas, was sentenced to 36 months in federal prison by U.S. District Judge D.P. Marshall, Jr.
Beasley served as President of a construction company in Conway, Arkansas, known as Cobas, Inc. Cobas maintained a line of credit with Centennial Bank. When Cobas performed construction work for other companies, Cobas would send invoices for the work they had performed. While waiting for those invoices to be paid, which could take up to 60 days, Cobas would submit the invoices to Centennial Bank, which would advance a percentage of the invoice amount to Cobas.
In August of 2016, Beasley began submitting fraudulent invoices to Centennial Bank in order to receive advance payments. He submitted several fraudulent invoices each month from August through December of 2016, resulting in a total of 17 fraudulent invoices for approximately $2,911,617.
Beasley pleaded guilty to an Information charging him with one count of bank fraud on September 18, 2018. In addition to 36 months in prison, Judge Marshall sentenced Beasley to two years of supervised release following his term of imprisonment. Beasley was also ordered to pay $2,019,773.36 in restitution.
The case was investigated by the United States Postal Inspection Service – Office of Inspector General and Conway Police Department. The case was prosecuted by Assistant United States Attorney Jana Harris.
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available on-line at
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@EDARNEWSTexas Doctor and Hospital Owner Convicted in $20 Million Healthcare Fraud SchemeRead the Press Release
HOUSTON – A federal jury has convicted a 50-year-old internal medicine doctor and 47-year-old hospital owner of conspiracy to commit health care fraud, 17 counts of health care fraud and three counts of money laundering, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Department of Justice’s Criminal Division. The jury deliberated for less than four hours following a two-week trial before convicting Dr. Harcharan Narang and Dayakar Moparty.
Narang, a doctor who owned and practiced at North Cypress Clinical Associates, and Dayakar Moparty, who managed and operated Red Oak Hospital, conspired to commit health care fraud. During trial, the jury heard evidence that Narang and Moparty unlawfully enriched themselves by submitting false and fraudulent claims for medical tests that were not medically necessary, not provided or both and then billed at Red Oak Hospital at a higher reimbursement rate.
Additionally, Narang and his co-conspirators falsified home health patient assessment form documents to make the beneficiaries appear sicker on paper to receive higher reimbursement rates from health care benefit programs such as Blue Cross Blue Shield, Cigna and Aetna. Moparty also also instructed his employees to falsely bill the medical services at Red Oak Hospital and other entities associated with Moparty, when in fact, the patients never received services from Red Oak and the other entities.
At trial, patients consistently testified that they had merely but a Groupon for weight loss shots. However, after meeting with Narang, they all received the same battery of medical tests that were not needed or provided. Health care benefit programs paid Red Oak Hospital approximately $3.2 million. Moparty then covertly paid Narang approximately $3 million to various corporate entities Narang owned.
Narang and MoParty’s co-conspirator, Dr. Gurnaib Sidhu, 67, of Houston, had previously pleaded to conspiracy to commit to health care fraud and is awaiting sentencing.
Narang and Moparty face up 10 years in federal prison for each count of health care fraud and up to 20 years for each count of money laundering. Narang and Moparty were permitted to remain on bond with an ankle monitor pending their sentencing hearing, set for June 20, 2019, before U.S. District Judge Sim Lake.
The FBI and Office of Personnel Management – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Tina Ansari and Trial Attorney Drew Pennebaker are prosecuting the case.
Texas Doctor and Hospital Owner Convicted in Multimillion Dollar Health Care Fraud SchemeRead the Press Release
A federal jury found an internal medicine doctor and hospital owner guilty today for their roles in a multimillion health care fraud scheme, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas.
Following a two-week trial, Harcharan Narang, 50, of Houston, Texas, and Dayakar Moparty, 47, of Houston, Texas,were found guilty of one count of conspiracy to commit health care fraud, 17 counts of health care fraud and three counts of money laundering. Sentencing is set for June 20, before U.S. District Judge Sim Lake of the Southern District of Texas, who presided over the trial.
Narang is a physician who owned and practiced at North Cypress Clinical Associates in Cypress, Texas. Moparty managed and operated Red Oak Hospital (Red Oak) in Houston, Texas. During the trial, evidence was admitted showing that Narang and Moparty unlawfully enriched themselves by submitting false and fraudulent claims for medical tests that were not medically necessary and/or not provided and then billed at Red Oak Hospital at a higher reimbursement rate.
Additionally, Narang and his co-conspirators falsified diagnostic referral forms to make the beneficiaries appear sicker on paper than they actually were, to receive higher reimbursement rates from health care benefit programs such as Blue Cross Blue Shield, Cigna and Aetna, the evidence showed. Moparty also instructed his employees to falsely bill the medical services at Red Oak and other entities associated with Moparty, when in fact the patients never received services at Red Oak and the other entities.
At trial, patients testified that they had merely bought a Groupon for weight loss shots, but after meeting with Narang, they all received the same battery of medical tests that were not needed or provided. According to the trial evidence, health care benefit programs paid Red Oak approximately at least $3.2 million, and Moparty then covertly paid Narang approximately $3 million dollars to various corporate entities owned by Narang.
Narang and Moparty’s co-conspirator, Gurnaib Sidhu, M.D., 67, of Houston, previously pleaded to conspiracy to commit health care fraud and is awaiting sentencing.
The investigation was conducted by the FBI and the U.S. Office of Personnel Management Office of Inspector General. Trial Attorney Drew Pennebaker of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tina Ansari of the Southern District of Texas are prosecuting the case.
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.
Two Texarkana Men Sentenced to More Than 7 Years in Federal Prison for Drug TraffickingRead the Press Release
Texarkana, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Patrick Taylor, age 32, of Texarkana, Arkansas, and Bruce Witherspoon, age 34, of Washington, Arkansas, were sentenced yesterday. Taylor was sentenced to 100 months in federal prison followed by four years of supervised release. While Witherspoon was sentenced to 92 months in federal prison followed by four years of supervised release, both for one count of Possession of Methamphetamine with Intent to Distribute. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearings in the United States District Court in Texarkana.
According to court records, investigators in Hempstead County coordinated controlled drug purchases from Taylor and Witherspoon between March and July 2017. Investigators recovered 47 grams of methamphetamine from Taylor, and 10 grams of methamphetamine from Witherspoon.
Both Taylor and Witherspoon were indicted by a federal grand jury in June 2018. Taylor entered a guilty plea in August 2018, and Witherspoon entered a guilty plea in October 2018.
These cases were investigated by the South Central Drug Task Force (SCDTF), the Federal Bureau of Investigation (FBI), and the Hempstead County Sheriff’s Department. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Stock Broker Sentenced to Prison for Insider Trading Scheme Based on Confidential Information Misappropriated from an Investment BankRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that MICHAEL SIVA, a former stock broker, was sentenced today to eighteen months in prison for his involvement in an insider trading scheme based on material, nonpublic information misappropriated from an investment bank by Daniel Rivas, a former employee at the bank. SIVA pled guilty on October 18, 2018, to one count of conspiracy to commit securities fraud and fraud in connection with a tender offer before U.S. District Judge Alison J. Nathan, who also imposed today’s sentence.
U.S. Attorney Geoffrey Berman said: “Michael Siva corrupted his position as a stock broker to place trades in the accounts of his brokerage clients based on inside information misappropriated from an investment bank. Siva committed insider trading to make himself look like a talented stock selector. The illegal trading by Siva resulted in millions in illicit profits. This Office is committed to identifying and prosecuting inside information-sharing networks that undermine our nation’s securities markets.”
According to the Indictment, other filings in Manhattan federal court, and statements made in court filings and proceedings:
In August 2017, SIVA, Roberto Rodriguez, Rodolfo Sablon, Jhonatan Zoquier, and Jeffrey Rogiers were arrested and charged in a 54-count Indictment for their involvement in three overlapping insider trading schemes, generating more than $5 million in illicit profits, all stemming from information misappropriated by Rivas. Prior to the unsealing of the Indictment last year, Rivas and an additional participant, James Moodhe, pled guilty and both have been cooperating with the Government in this investigation. Since the unsealing of the Indictment, all of the charged defendants have pled guilty.
The Investment Bank and Rivas
From August 2013 through May 2017, Rivas was employed as a technology consultant in the Research and Capital Markets Technology Group of an investment bank (the “Investment Bank”). In this role, Rivas had access to an internal, proprietary system maintained by the Investment Bank (the “Deal Tracking System”) containing material, nonpublic information (“Inside Information”) about potential and unannounced merger and acquisition transactions, including tender offers, involving the Investment Bank. The Investment Bank’s written policies prohibited the unauthorized disclosure of confidential information, which included Inside Information. Rivas had a duty, among other obligations, to maintain the confidentiality of all of the Investment Bank’s confidential information, including the Inside Information.
Overview of Insider Trading Schemes
From August 2014 through April 2017, Rivas violated the duties of confidentiality he owed to the Investment Bank by serially misappropriating material, nonpublic information from the Investment Bank’s Deal Tracking System and passing that information along to friends so that they could utilize it to make profitable trades. On more than 50 occasions between August 2014 and April 2017, Rivas provided Inside Information about contemplated but unannounced merger and acquisition transactions and tender offer transactions involving clients and prospective clients of the Investment Bank to friends who used that information to purchase and sell securities. In total, the insider trading based on Inside Information misappropriated by Rivas resulted in illicit profits of more than $5 million through trading in more than two dozen securities. The Inside Information was passed through three tipping chains.
The Rivas-Moodhe-Siva Tipping Chain
SIVA was a member of the first of three tipping chains outlined in the Indictment. In this tipping chain, Rivas passed inside information to Moodhe, the father of the woman with whom Rivas was living and dating. Moodhe then passed the inside information to SIVA, a broker and financial adviser at a global investment bank headquartered in Manhattan, New York. Moodhe and SIVA had known each other for more than a decade and SIVA also became Moodhe’s broker.
Between 2015 and 2017, Moodhe shared with SIVA the inside information he received from Rivas so that SIVA could execute profitable trades on behalf of his financial advisory clients and himself. By at least early 2016, SIVA understood that the source of the stock tips provided by Moodhe was a corporate insider at an investment bank with whom Moodhe was friends.
In order to keep their scheme from being exposed, including by SIVA’s employer, Moodhe and SIVA developed code phrases to use on the telephone so that Moodhe could surreptitiously provide SIVA with updated inside information. To further hide their scheme, SIVA and Moodhe began going to various diners outside of New York City so that Moodhe could provide stock tips to SIVA in person. During these meetings, Moodhe read from pieces of paper provided to him by Rivas, which contained detailed information about confidential impending deals, including ticker symbols, deal values and expected announcement dates. In order to hide the fact that SIVA was placing trades in his client accounts based on illicit stock tips from Moodhe, SIVA also instructed Moodhe to mark his dirty trades “solicited” in his firm’s online trading platform, so that it would appear that SIVA had directed the trades as opposed to the suggestion coming from Moodhe. On occasion, SIVA also instructed Moodhe to wait to trade on a tip from Rivas until SIVA could first trade in the security on behalf of his financial advisory clients, thereby making it look like SIVA had originated the idea.
In total, between 2015 and 2017 SIVA and Moodhe used Inside Information Rivas provided to trade ahead of the public announcements of more than two dozen transactions, including numerous tender offers, allowing SIVA and Moodhe to generate illicit profits in excess of $3 million. SIVA also earned thousands of dollars in commissions on the illegal trades entered on behalf of his clients.
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In addition to the prison term, SIVA, 57, of Morristown, New Jersey, was sentenced to 2 years of supervised release and ordered to forfeit $35,000.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Andrea M. Griswold and Samson Enzer are in charge of the prosecution.
Southside Brims Gang Members Plead Guilty to Committing a Violent Act in Aid of RacketeeringRead the Press Release
Baltimore, Maryland – Ali Jackson, age 25, of Baltimore, Maryland, pleaded guilty today to committing a violent act in aid of racketeering, in connection with his membership in the Southside Brims gang. Co-defendant Davon Hamilton, age 20, of Baltimore, pleaded guilty to the same charge on January 31, 2019.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; and Chief John Gavrilis of the Maryland Transit Administration Police.
According to their guilty pleas, Jackson and Hamilton are members of the Southside Brims, a subset of the Bloods, a violent street gang with thousands of members nationwide. In approximately 2005, a member of the Fruit Town Brims, another subset of the Bloods gang that became established on the East Coast, was authorized to form a new Bloods set in Maryland, the Southside Brims. Over time, the Southside Brims expanded in membership to other states, including New Jersey, Virginia, South Carolina, and Pennsylvania.
The Southside Brims follows many of the same practices as the Bloods gang, including identification with the color red, which members wear prominently in clothing, hats, and bandanas as a way to signify membership in the gang; a long-term and violent rivalry with the Crips street gang; and an established hierarchical membership structure, among other things.
Members of the Southside Brims engaged in criminal activity including, attempted murders, murder, assaults, robberies, drug trafficking. Southside Brims members committed acts of violence to maintain membership in the gang, to discipline members within the gang, and to retaliate against rival gang members. Participation in criminal activity by a member, particularly violent acts directed at rival gang members or as directed by gang leadership, increased the respect accorded to that member, resulted in the member maintaining or increasing his position in the gang, and could result in a promotion within the gang. Southside Brims members participated in meetings to conduct gang business, including initiations of new members, discussions of sanctions, collections of membership dues, and discussions of acts of violence and other activities related to the gang.
On March 22, 2018, Jackson and Hamilton were socializing with members of the gang when the group learned that another member of the gang had allegedly been assaulted by members of the rival Crips street gang. Jackson, Hamilton and several gang members went to the area of the assault to assist, ultimately encountering several suspected Crips members in Baltimore. Jackson, Hamilton, and other members of the Southside Brims assaulted one victim, “C.A.,” knocking the victim unconscious. During the assault, one of the members of the gang stabbed C.A. four times with a knife. Members in the gang also forcibly stole property from C.A. Jackson and the other Southside Brims then fled the area. Jackson admitted that he participated in the assault of C.A. to maintain or increase his position in the gang.
Jackson and Hamilton each face a maximum sentence of 20 years in prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for Jackson on April 18, 2019 at 1:00 p.m. and for Hamilton on April 26, 2019 at 11:00 a.m. The defendants remain detained pending sentencing.
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 FBI, HSI Baltimore, and the Maryland Transit Administration Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Joan C. Mathias, who are prosecuting the case.
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South Florida Patient Recruiter Convicted for Role in $600,000 Health Care Kickback SchemeRead the Press Release
A federal jury found a South Florida patient recruiter guilty today for her role in a scheme involving approximately $600,000 in Medicare claims for home health care that were procured through the payment of kickbacks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
After a four-day trial, Yamilet Diaz, 50, of Hialeah, Florida, was convicted of one count of conspiracy to defraud the United States and receive health care kickbacks and four counts of receiving health care kickbacks. Sentencing has been scheduled for May 9 before U.S. District Judge James I. Cohn of the Southern District of Florida, who presided over the trial.
According to evidence presented at trial, from approximately October 2012 to June 2013, Diaz received kickbacks in return for referring Medicare beneficiaries to Good Friends Services Inc. (Good Friends), a now-defunct home health agency located in Hialeah Gardens, Florida, to serve as patients. The evidence established that Diaz and her co-conspirators caused Medicare to make over $600,000 in payments to Good Friends based upon claims for home health services submitted on behalf of the beneficiaries recruited by Diaz. The evidence further established that Diaz personally benefited from the fraud and received at least $306,800.
This case was investigated by the FBI with support from HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Trial Attorneys Patrick Mott, John Scanlon and Timothy Loper of the Fraud Section and Assistant U.S. Attorney Leslie Wright of the District of Massachusetts, previously with the Fraud Section.
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.
Shreveport felon found with drugs, firearmRead the Press Release
SHREVEPORT, La. – Bryan Thomas Robinson, 38, of Shreveport, pleaded guilty Wednesday before U.S. District Judge S. Maurice Hicks Jr. to possession of a firearm by a convicted felon and possession of a firearm in furtherance of drug trafficking, U.S. Attorney David C. Joseph announced.
According to the guilty plea, Shreveport Police stopped Robinson’s vehicle on October 28, 2017 on Linwood Avenue. Police searched his vehicle and found a blue bag with approximately 49 grams of marijuana, pills, a digital scale, additional plastic baggies and a Hi Point .45-caliber semi-automatic handgun in a cooler in the trunk of the vehicle. Robinson is also a felon who was convicted on February 25, 2013 of possession with intent to distribute a Schedule II controlled substance and possession with intent to distribute a Schedule I controlled substance, which prohibits him from possessing a firearm under federal law.
Robinson faces up to 10 years in prison for possession of a firearm by a felon and not less than five years in prison for possessing a firearm in furtherance of drug trafficking. He also faces three to five years of supervised release and a $250,000 fine.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Tiffany E. Fields is prosecuting the case.
Savannah residents plead guilty to conspiracy to distribute heroinRead the Press Release
SAVANNAH, GA: Two people are facing substantial prison sentences and fines after pleading guilty to federal heroin trafficking charges.
Gary Johnson, a/k/a “G,” 44, and Jamison Lanier, a/k/a “Monica Lewinsky,” 36, both of Savannah, have each pled guilty to Conspiracy to Possess with Intent to Distribute and Conspiracy to Distribute Heroin in U.S. District Court, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
Each of the defendants face up to 20 years in prison, fines of up to $1 million, and at least three years of supervised release upon completion of their sentences. There is no parole in the federal system.
According to statements made in court and in court filings, Johnson and Lanier were involved in a conspiracy to distribute heroin from at least February through December of 2018. During the investigation, agents observed Lanier and Johnson distribute heroin at multiple parking lots in the Savannah area, including Walmart, Home Depot, Family Dollar, and Memorial Hospital. On Nov. 8, 2018, federal agents executed federal search warrants at three locations associated with Johnson, resulting in the seizure of more than $97,000 cash and more than 170 grams of heroin, with much of it laced with the synthetic opioid Fentanyl.
“Like much of the United States, our communities are seeing a troubling increase in heroin and Fentanyl distribution as a consequence of the nation’s opioid crisis,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Working with our law enforcement partners, we are determined to find, prosecute, and remove those who would peddle this poison in our neighborhoods.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, “Heroin and synthetic drugs have no boundaries. Once consumed, they destroy their victims like predators ravage their prey. Many thanks to the collaboration of law enforcement agencies and the subsequent prosecution by the U.S. Attorney’s Office, who all made this investigation a success.”
“The U.S. Postal Inspection service remains steadfast in our resolve to ensure that we seek justice to the end against criminals that pose a direct threat to the safety and stability of our communities,” said Antonio J. Gomez, Inspector in Charge of the Miami Division. “This goal is achieved through collaborative investigative efforts with other law enforcement agencies.”
This case was investigated by the Drug Enforcement Administration (DEA) and the United States Postal Inspection Service. The case was prosecuted for the United States by Assistant United States Attorney Joshua Bearden.
San Marcos Man Sentenced to 46 Months in Prison for Stealing the Identities of Charities as Part of a Tax-Fraud SchemeRead the Press Release
Assistant U.S. Attorneys Daniel Zipp (619) 546-8463 and Seth Askins (619) 546-6692
NEWS RELEASE SUMMARY – February 22, 2019
SAN DIEGO – Robert Holcomb, 53, was sentenced in federal court today to 46 months’ custody and ordered to pay a fine of $600,000, for misappropriating the identities of charities and using them to open bank accounts as part of a long-running tax fraud scheme.
Holcomb, who appeared before U.S. District Court Judge William Q. Hayes, was convicted by a federal jury on July 20, 2018 of four counts of making false statements to a financial institution.
According to the evidence presented at trial, Holcomb held himself out as an “asset protection” specialist who had the ability to use charitable trust accounts to reduce the tax liability of clients. Holcomb convinced his clients to forward him the profits from their businesses, which he then cycled through a series of bank accounts—with names that sounded like charities—and then returned the funds, minus a commission, with the assurance that they no longer constituted taxable income. Holcomb’s clients then filed tax returns that substantially underreported their true income, resulting in millions of dollars in lost income to the IRS. Over the course of a decade, Holcomb transferred more than $12 million in otherwise taxable income through his accounts, collecting “commissions” from his clients of more than $1 million dollars.
In 2011, after a number of Holcomb’s bank accounts were frozen, he was forced to open dozens of new accounts to keep the tax-evasion scheme operating. To do so, Holcomb began creating corporate entities whose names matched those of existing charities; misappropriating the taxpayer identification information from those charities; and then using their names and identification numbers to open new bank accounts. These charities included:
- Light of Life LLC, which operated a soup kitchen and rescue mission in Pittsburgh, PA;
- On Eagle’s Wings LLC, which provided missionary outreach in the Northwest Territories of Canada;
- Push the Rock, LLC, a Christian Sports Ministry, in Pennsylvania; and
- Sharing and Caring, LLC, a veteran’s organization that organized an annual boat trip for wounded veterans in Pittsburgh.
Representatives from each organization testified at trial that they did not know Holcomb, never gave him authorization to use their identities, and were unaware that he opened bank accounts in their name. When confronted about his affiliation with the charities, in a recorded call, Holcomb claimed that he had a “fiduciary relationship” and “run[s] everything.” When IRS agents then executed a search warrant on Holcomb’s residence, he admitted to using the charities’ numbers, but claimed that he could “use whatever number” he wanted, because he was “USA posterity.” Holcomb explained that he was “part of the upper caste” that was descended from the original founders of the “Massachusetts Bay Company.” As such, he explained, he was not required to pay taxes and was not subject to the Constitution.
“Holcomb used a series of sham trust arrangements to divert millions of taxpayer dollars into his own pocket,” said U.S. Attorney Robert Brewer. “His offense was particularly egregious because he used the identities of real charities in order to avoid detection and continue collecting commissions on funds that should have gone to the U.S. Treasury. No one is above the law, and merely claiming to be a sovereign citizen will not exempt you from criminal liability.”
“As today’s sentencing shows, individuals who create elaborate schemes that have no purpose other than to defraud the IRS and financial institutions will be prosecuted and suffer a loss of freedom,” said Acting Special Agent in Charge Bryant Jackson of IRS Criminal Investigation. “With filing season in full swing, it is a good time to remember that the IRS will actively pursue fraudsters who cleverly orchestrate these types of avoidance schemes.”
The case was prosecuted by Assistant U.S. Attorneys Daniel Zipp and Seth Askins.
DEFENDANT 16-CR-1408-WQH
Robert Holcomb Age: 53 San Marcos, CA
SUMMARY OF CHARGES
Making False Statements to a Financial Institution (18 U.S.C. 1014)
AGENCIES
Federal Bureau of Investigations
Internal Revenue Service
Bureau of Alcohol, Tobacco, Firearms and Explosives
Russian Hacker Who Used Neverquest Malware to Steal Money from Victims’ Bank Accounts Pleads Guilty in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that STANISLAV VITALIYEVICH LISOV, a/k/a “Black,” a/k/a “Blackf” (“LISOV”), pled guilty today to conspiring to deploy and use a type of malicious software known as NeverQuest to infect the computers of unwitting victims, steal their login information for online banking accounts, and use that information to steal money out of the victims’ accounts. NeverQuest has been responsible for millions of dollars’ worth of attempts by hackers to steal money out of victims’ bank accounts. LISOV pled guilty before United States District Judge Valerie E. Caproni.
U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Stanislav Vitaliyevich Lisov used malware to infect victims’ computers, obtain their login credentials for online banking accounts, and steal money out of their accounts. This type of cybercrime extends across borders, poses a malicious threat to personal privacy, and causes widespread financial harm. For his audacious crime, this Russian hacker now faces justice in an American court.”
FBI Assistant Director William F. Sweeney Jr. said: “'In addition to creating and maintaining a botnet infected with NeverQuest malware, Stanislav Lisov, a Russian national, gathered personally identifiable information of NeverQuest victims and discussed illegally trafficking that information. As today's plea should demonstrate, the FBI and our partners will continue to bring these actors to justice, regardless of where they may hide.”
According to the Indictment, Complaint, and other statements made during public court proceedings:
NeverQuest is a type of malicious software, or malware, known as a banking Trojan. It can be introduced to victims’ computers through social media websites, phishing emails, or file transfers. Once surreptitiously installed on a victim’s computer, NeverQuest is able to identify when a victim attempts to log onto an online banking website and transfer the victim’s login credentials – including his or her username and password – back to a computer server used to administer the NeverQuest malware. Once surreptitiously installed, NeverQuest enables its administrators remotely to control a victim’s computer and log into the victim’s online banking or other financial accounts, transfer money to other accounts, change login credentials, write online checks, and purchase goods from online vendors.
Between June 2012 and January 2015, LISOV was responsible for key aspects of the creation and administration of a network of victim computers known as a “botnet” that was infected with NeverQuest. Among other things, LISOV maintained infrastructure for this criminal enterprise, including by renting and paying for computer servers used to manage the botnet that had been compromised by NeverQuest. Those computer servers contained lists of millions of stolen login credentials – including usernames, passwords, and security questions and answers – for victims’ accounts on banking and other financial websites. LISOV had administrative-level access to those computer servers.
LISOV also personally harvested login information from unwitting victims of the NeverQuest malware, including usernames, passwords, and security questions and answers. In addition, LISOV discussed trafficking in stolen login information and personally identifiable information of victims.
On January 13, 2017, LISOV was arrested in Spain pursuant to a provisional arrest warrant. On January 19, 2018, LISOV was extradited from Spain to the United States.
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LISOV, 33, a citizen of Russia, pled guilty to one count of conspiracy to commit computer hacking, which carries a maximum sentence of five years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. LISOV’s sentencing is scheduled for June 27, 2019 at 11:00 a.m. before Judge Caproni.
Mr. Berman praised the outstanding investigative efforts of the FBI. Mr. Berman also thanked the DOJ Office of International Affairs for its assistance in this case.
The matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Michael D. Neff is in charge of the prosecution.
Rosebud Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Travis Bird In Ground, age 20, was indicted on February 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 20, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 25, 2018, Bird In Ground did forcibly assault, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, and that such conduct involved physical contact.
The charge is merely an accusation and Bird In Ground is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Bird In Ground was released on bond pending trial. A trial date has not been set.
Rockford Man Pleads Guilty to Illegally Possessing a Firearm and AmmunitionRead the Press Release
ROCKFORD — A Rockford man pleaded guilty in federal court today before U.S. District Judge Frederick J. Kapala to illegally possessing a firearm and ammunition as a convicted felon.
AUSTIN A. RICHARDSON, 25, admitted that on Sept. 20, 2017, he possessed a Taurus 9mm pistol and approximately 50 rounds of ammunition at a shooting range after having been previously convicted of a felony.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. The government is represented by Assistant U.S. Attorney Talia Bucci.
As stated in the plea agreement, Richardson and another individual took the Taurus 9mm pistol to a firearms retailer and shooting range in Loves Park, and Richardson shot the pistol numerous times at the shooting range. Richardson and the other individual also bought approximately 50 rounds of ammunition from the firearms retailer, with Richardson providing the money for the purchase.
Richardson faces a maximum sentence of ten years’ imprisonment, a term of supervised release of up to three years following imprisonment, and a fine of up to $250,000. The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Sentencing is scheduled for June 20, 2019, at 2:00 p.m.
Rockford Man Pleads Guilty to Attempted Robbery and Firearm ChargesRead the Press Release
ROCKFORD — A Rockford man pleaded guilty today in federal court before U.S. District Judge Frederick J. Kapala to one count of attempted robbery and one count of using, carrying, and brandishing a firearm during a crime of violence.
DARNELL LEAVY, 28, admitted in a written plea agreement that at approximately 7:00 p.m. on Nov. 5, 2015, he and others attempted to rob the Zake Convenience store, 824 Seventh St. in Rockford. As stated in Leavy's plea agreement, co-defendant RICKEY CLAYBRON, 33, of Rockford, entered the store first with his gun pointed at two clerks who were behind a glass enclosure. Leavy entered second and also began pointing his gun at the clerks, according to Leavy's plea agreement. A third individual then entered the store carrying a bag meant for the proceeds of the robbery, Leavy's plea agreement states. The employees of the store barricaded themselves in the glassed-in area where the registers were located. Leavy's plea agreement further states that Leavy tried to kick the door open, but was unsuccessful. In the meantime, according to Leavy's plea agreement, Claybron came around the front of the glass enclosure and pointed his gun through the small hole in the front that is used to conduct business with customers. Eventually, Leavy and the other robbers gave up on the robbery and walked out of the store, Leavy's plea agreement states.
Leavy's guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department and Freeport Police Department. The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
For the attempted robbery, Leavy faces a maximum sentence of 20 years’ imprisonment, to be followed by a term of supervised release of up to three years following imprisonment. For the firearm charge, Leavy faces a statutory mandatory minimum sentence of seven years and a maximum sentence of life, to be consecutive to any other sentence imposed, as well as a term of supervised release of up to five years following imprisonment. Both charges also carry a fine of up to $250,000 apiece. The sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Sentencing for Leavy is set for June 4, 2019, at 11:00 a.m.
Claybron is charged with one count of conspiracy to commit robbery, three counts of robbery, one count of attempted robbery, and four counts of using, carrying, and brandishing a firearm during a crime of violence. Claybron has pleaded not guilty and is in custody while awaiting trial.
Also charged in the case is DEANDRE R. HAYWOOD, also known as “Duke,” 28, of Rockford. Haywood is charged with one count of conspiracy to commit robbery, three counts of robbery, and three counts of using, carrying, and brandishing a firearm during a crime of violence. Haywood has pleaded not guilty and is in custody while awaiting trial.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Repeat Offender with 30 Year Criminal History Sentenced to Prison for Drug Dealing on Kent’s East HillRead the Press Release
A one-time Crips gang member with prior convictions for assault, robbery, and drug dealing was sentenced today in U.S. District Court in Seattle to 70 months in prison for conspiracy to distribute methamphetamine, announced U.S. Attorney Brian T. Moran. ANTHONY COLBERT, 49, of Seattle pleaded guilty in September 2018, following his arrest as part of “Operation East Watch.” The law enforcement initiative, led by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), focused on drug dealing and gang violence in Kent’s East Hill neighborhood. COLBERT was fresh from a federal prison sentence for drug dealing when he was identified as a key drug conspirator at the Highland Green apartments. COLBERT tried to hide behind others as he distributed drugs in the community. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez said COLBERT had “an extensive criminal history with very serious offenses – made even worse by the fact that when he committed these crimes he had just gotten off of supervised release.”
“This defendant has already served a total of 25 years in prison for state and federal offenses and now is adding to that unenviable record,” said U.S. Attorney Brian T. Moran. “The East Watch initiative targeted offenders causing crime and violence in an area that saw 29 shootings in 2018. By taking these habitual offenders out of our communities we hope to make our neighborhoods safer for all of us.”
“Mr. Colbert’s willingness in conspiring to distribute this deadly drug placed the community at great risk,” said ATF Seattle Field Special Agent in Charge Darek Pleasants. “His actions show contempt for law and order and this sentence is justified by the danger he poses to society.”
According to records filed in the case, just four months after being terminated from supervised release for a 2014 federal conviction for distributing oxycodone and Percocet, COLBERT came to the attention of law enforcement. COLBERT was identified as the source of supply of methamphetamine for co-defendant Allen Betts III, who distributed the drugs out of his Highland Green apartment complex. Law enforcement observed COLBERT bring the drugs to Betts on multiple occasions, before Betts sold the drugs to an undercover agent and a person working with law enforcement.
COLBERT has criminal history dating back to the 1980’s for drug and gun crimes. In 1991, he was sentenced to 65 months in prison for firing shots in a Seattle neighborhood in a turf dispute with another gang. In 1995, within a year of his release from prison he was sentenced to 12 years in prison for robbery. In 2006, while still on state supervision he illegally possessed a firearm and was sentenced to an additional 70 months in prison. His federal conviction followed with a three-year federal sentence.
All eight defendants in Operation East Watch have pleaded guilty. Two of the eight await sentencing later this year.
- Mario Parra-Cetino, 28 of Kent, Washington was sentenced earlier this month to 66 months in prison for conspiracy to distribute heroin and being a felon in possession of a firearm.
- Anthony Ripley, 46, of Tacoma, was sentenced in November 2018, to ten years in prison for drug and gun possession crimes.
- Eddie Tarik Musa Bell, Jr was sentenced in November to four years in prison for distribution of methamphetamine and being a felon in possession of a firearm.
- Devon Parramore, 50 of Kent, was sentenced last month to 33 months in prison for distribution of methamphetamine.
- Allen Betts III, 40, of Kent, pleaded guilty to conspiracy to distribute methamphetamine and unlawful possession of a firearm and was sentenced last month to four years in prison.
- Neal Stringer, 46, of Kent and Des Moines, pleaded guilty to conspiracy to distribute methamphetamine and being a felon in possession of a firearm. He is scheduled for sentencing in April 2019.
- Kenyon Taylor, 39, of Federal Way, pleaded guilty in December 2018, to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. He is scheduled for sentencing in March 2019.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, DOJ leadership announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The operation was led by the Bureau of Alcohol, Tobacco, Firearms & Explosives’ (ATF) Puget Sound Regional Crime Gun Task Force and the Kent Police Department. The task force contains agents and officers from King County Sheriff’s Office, Washington State Department of Corrections, Washington State Patrol, Drug Enforcement Agency, U.S. Marshals Service, Seattle Police Department, and Valley Narcotics Enforcement Team.
The cases are being prosecuted by Assistant United States Attorney Amy Jaquette and Special Assistant United States Attorney Jessica Manca. Ms. Manca is a Senior Deputy King County Prosecutor specially designated to prosecute gun crimes in federal court.
Registered Sex Offender Charged in “Sextortion” CaseRead the Press Release
United States Attorney Erica H. MacDonald today announced the indictment of DYLAN MATTHEW DELING, a/k/a “Jason Keens,” a/k/a “Dylan Nash,” 19, on child pornography and extortion charges. DELING made his initial appearance yesterday before Magistrate Judge Katherine Menendez, in U.S. District Court in Minneapolis, Minnesota.
“As the cyber threat landscape continues to evolve, sextortion crimes are becoming more prevalent through the use of social media platforms and messaging apps,” said U.S. Attorney Erica MacDonald. “These types of cases cause very real harm and can have a devastating impact, especially on young victims. Teachers, parents, and students alike need to be aware of this issue, know how to defend against online predators, and be vigilant in reporting these crimes.”
According to the allegations in the indictment, on May 14, 2018, DELING, a registered sex offender, persuaded, induced, and coerced a minor victim (Minor A) to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. On July 8, 2018, DELING contacted a second minor victim (Minor B) and threatened to kidnap and injure the victim and her parents if she did not provide DELING with sexually explicit images.
This case is the result of an investigation conducted by the FBI, in coordination with multiple state and local law enforcement agencies inside and outside of Minnesota.
This case is being prosecuted by Assistant U.S. Attorney Miranda E Dugi.
Defendant Information:
DYLAN MATTHEW DELING, a/k/a “Jason Keens,” a/k/a “Dylan Nash,” 19
Fairmont, Minn.
Charges:
- Production and attempted production of child pornography, 1 count
- Penalties for registered sex offenders, 1 count
- Interstate commination with intent to extort, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Randolph County woman admits to drug distributionRead the Press Release
ELKINS, WEST VIRGINIA – Kelsey Rae Sylvester, of Elkins, West Virginia, has admitted to maintaining a drug house, United States Attorney Bill Powell announced.
Sylvester, age 32, pled guilty to one count of “Maintaining a Drug-Involved Premises.” Sylvester admitted to allowing others to use her home at 461 Wilson Street in Elkins to distribute methamphetamine, heroin, and cocaine. The crime occurred from January to March 2017.Sylvester faces at least five years and up to 20 years incarceration and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michel John Aloi presided.
Philadelphia Businessman Ordered to Pay $81,217 in Restitution for Failure to Pay Employment TaxesRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that Jong Young Choi, 46, of Chalfont, PA, was ordered to pay $81,217.00 in restitution for willful failure to pay employment taxes. He was also sentenced to 5 years' probation for his conduct. Choi, as the president and sole shareholder of JUNS, Inc., doing business as Daisy Dry Cleaners, located in Philadelphia, was responsible for collecting, accounting for, and paying employment taxes due to the Internal Revenue Service from January 1, 2012 through January 31, 2016. He failed to collect and pay approximately $67,931 in employment taxes for his employees.
“By ignoring his employment tax obligations for years, Choi lived by his own set of self-imposed rules, but his criminal conduct eventually caught up with him,” said U.S. Attorney McSwain. “Failure to pay employment taxes is a federal crime – one that my Office takes seriously. We will continue to hold people accountable when they willfully fail to pay taxes owed to the Internal Revenue Service.”
“When Jong Choi made the decision not to collect and turn over all IRS withholding taxes, he also made the decision to cheat his employees and other honest taxpayers,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. "The investigation of employment tax fraud is a priority for the special agents of IRS-CI as our system of taxation depends on everybody paying their fair share. Let today’s sentence serve as a warning to those contemplating similar actions."
The case was investigated by the Internal Revenue Service, Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Terri A. Marinari.
Per Se Rule Applies in Heir Location Prosecution, Judge Grants United States’ MotionRead the Press Release
In an opinion issued yesterday, the United States District Court for the District of Utah granted the United States’ Motion to Reconsider and found the per se rule applies to the horizontal customer agreement alleged in the indictment of heir location service providers Kemp & Associates and its Chief Operating Officer, Daniel J. Mannix.
“The Department is pleased that the Court granted our motion today and we look forward to trying this case to protect consumers who are harmed by the conduct alleged in the indictment,” said Assistant Attorney General Makan Delrahim.
In granting the United States’ Motion, the Court found the “the agreement in the present case is a horizontal customer allocation agreement, and therefore subject to the Per Se approach.”
Heir location firms identify people who may be entitled to an inheritance from the estate of someone who died without a will. The heir location firms then enter into contracts with those people to help secure their inheritances in exchange for a fee.
The indictment alleges that the conspirators agreed to suppress and eliminate competition between them on estates they both pursued. Specifically, the indictment alleges that they agreed that the second company to solicit an heir on an estate would allocate that heir and the business of certain remaining heirs to the first company. In exchange for backing off, the first company would then pay the second company a portion of the contingency fees ultimately collected from the allocated heirs. The conspirators memorialized, monitored, enforced, and profited from this agreement from as early as September 1999 until as late as January 2014.
Pennsylvania Man Sentenced to 147 Months in Prison for Three Robberies, Possessing Firearm in Furtherance of Crime of ViolenceRead the Press Release
CAMDEN, N.J. – A Pennsylvania man was sentenced today to 147 months in prison for committing three armed robberies in Salem, Ocean, and Cumberland counties in November 2017, U.S. Attorney Craig Carpenito announced.
Terrance Robinson, 32, of Havertown, Pennsylvania, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with one count of Hobbs Act robbery, two counts of bank robbery, and one count of possession of a firearm in furtherance of a crime of violence. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Nov. 1, 2017, Robinson and Jeffery Edmonds, 45, of Ridley Park, Pennsylvania, drove together to a convenience store in Upper Pittsgrove Township, New Jersey, stopping along the way to pick up a handgun and remove the license plates from the car that Edmonds was driving. After arriving at the convenience store, Edmonds remained in the getaway car while Robinson entered the store with the handgun and stole some money.
Edmonds and Robinson robbed an Ocean First Bank in Upper Deerfield Township, New Jersey, on Nov. 6, 2017, and a Fulton Savings Bank in Alloway Township, New Jersey, on Nov. 14, 2017. Prior to robbing the banks, Edmonds and Robinson removed the license plates from the getaway car. Robinson stayed in the getaway car while Edmonds entered the banks and robbed them with a handgun.
In addition to the prison term, Judge Simandle sentenced Robinson to five years of supervised release and ordered him to pay restitution of $13,527.
Edmonds previously pleaded guilty for his alleged roles in the robberies, and his sentencing is scheduled for March 1, 2019.
U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, special agents of the FBI Newark Field Office, under the direction of Special Agent in Charge Gregory W. Ehrie, and officers of the N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Participants in $200 Million Workers’ Comp Scheme Sentenced to Prison and More Than $2 Million in Financial PenaltiesRead the Press Release
Assistant U.S. Attorneys Valerie Chu (619) 546-6750, Caroline Han (619) 546-6968 and Fred Sheppard (619) 546-8237
NEWS RELEASE SUMMARY – February 22, 2019
SAN DIEGO – This week in federal court a slew of conspirators involved in a massive Workers’ Compensation kickback scheme were ordered to serve prison sentences and pay millions in financial penalties for their roles in the corrupt payment of millions of dollars to induce doctors and other medical professionals to refer hundreds of injured workers for medical treatments and services.
According to court records, dozens of marketers, doctors, lawyers and medical service providers conspired to bilk the Workers’ Compensation system in California by buying and selling patients -- and their individual “body parts” -- like commodities. Among the defendants sentenced this week was an attorney, a chiropractor, two business owners and several marketers who referred patients for tests (such as MRIs, functional capacity exams and sleep studies), treatments (such as “shockwave,” x-rays, and ultrasound), pain medications, and durable medical equipment (DME) based on the corrupt payments. The conspirators often subjected patients to uncomfortable and sometimes painful procedures, so the conspirators could thereafter bill insurance companies for millions of dollars. As the government argued in its sentencing papers, the conspirators’ corruption of the doctor-patient relationship caused physicians to see price tags on every patient’s body parts. Each of the defendants played a critical role in the corrupt scheme.
The Corrupt Network
Defendant Fermin Iglesias and co-defendant Carlos Arguello operated a patient-capping enterprise, in which they found individuals who would file Workers’ Compensation claims against their employers. Iglesias and Arguello then sold, bartered and exchanged these applicants with others in the Workers’ Compensation industry, including attorneys, primary care physicians, and providers of medical goods and services. Each of these entities had to “pay to play,” and as the patient was referred throughout this corrupt system, money changed hands at each step. Arguello operated several patient-recruitment entities, including one called Centro Legal. Through billboards, flyers, advertisements and business cards, Centro Legal recruited persons to seek workers' compensation benefits from their employers or former employers. When the injured worker called the 1-800 number on the billboard or card, he or she reached a call center, which might be located in another country. From there, Iglesias’ company, Providence Scheduling, took over brokering the patient to maximize the profit that could be extracted from him or her.
Centro Legal referred the newly-acquired patient to complicit Workers' Compensation attorneys, including, in San Diego, attorney Sean O’Keefe, who had one of the largest Workers’ Comp caseloads in the region. To get these new clients, the attorneys in the corrupt network were expected to comply with certain conditions: first, they had to use Arguello’s copying service to fulfil document requests for all of the new client’s medical records; second, they had to agree to designate as their client’s primary treating physician (“PTP”) one of the complicit physicians within the corrupt network. In exchange, the attorneys received compensation. For O'Keefe, the compensation took a variety of forms. One hospital administrator paid the salaries of two employees of O’Keefe’s law firm, as a kickback to O’Keefe for referring spinal surgeries to that hospital. In another variation, the kickback payments were disguised as payments for nonexistent legal services, for which O’Keefe generated phony “legal invoices” to cover up those obviously illegal payments.
The corrupt physician could serve as the patients' primary care physician in the Workers' Comp system. This was a key gatekeeper role, because the PTP was entrusted with the authority to determine what additional goods and services the patient needed. Iglesias required that the chiropractors prescribe a certain minimum quota of goods and services, on average, for each patient. If the chiropractor failed to live up to the quota, Iglesias would cut off the flow of new patients.
Dr. Steven Rigler was one of the chiropractors involved in the corrupt referral network. He had clinics in Calexico, San Diego, and Escondido. To get patients for his San Diego and Escondido clinics, Rigler agreed to meet the referral “quota” set by Iglesias and Arguello. Court records reflect that Iglesias set a “value” for each type of service the physicians could refer, for example, $30 for each MRI, and $150 for Durable Medical Equipment (DME), to meet the quota of $600. To get credit, physicians had to refer their DME orders to Iglesias’ company, Meridian Medical Resources. Many of the MRIs were referred to Advanced Radiology, a diagnostic imaging company owned by Dr. Ronald Grusd. In Calexico, Ruben Martinez ran Rigler’s clinic and managed all of Rigler’s referrals for ancillary services. Alexander K. Martinez performed the same service for Rigler’s other clinics.
If the physicians failed to meet the quota, Iglesias cut off the pipeline of new patients. Iglesias employed Miguel Morales to ensure that physicians met the quota, and to demand lump-sum payoffs from them if they failed to do so. And to avoid such problems, and ensure a smooth referral process, Arguello hired referral managers who worked in chiropractor offices. For a time, Julian Garcia was paid by Arguello to manage Rigler's referrals. Garcia had Rigler's signature stamp, and if Rigler got behind, Garcia would simply increase the number of MRIs referred for each patient. Eventually, Garcia himself got licensed as a DME provider, and he himself paid chiropractors $50 apiece to prescribe “hot/cold packs” for pain relief, which were then billed to insurance companies for nearly $6,000.
Jennifer Louise White represented providers of other types of services, namely, Autonomic Nervous System (“ANS”) studies and sleep studies. She worked with Alex Martinez and with providers of the ANS and sleep studies to pay nearly $200,000 in kickbacks to Rigler to refer patients for these services.
Sentencing Hearings
In sentencing hearings held on February 20 and 21, 2019, U.S. District Judge Cynthia A. Bashant sentenced each defendant to custodial time. For his crimes, Iglesias was sentenced to 60 months in custody, and required to forfeit $1,005,000 in ill-gotten gains. Judge Bashant imposed five years’ probation on Igelsias’ corporations, MedEx and Meridian, and imposed a $500,000 joint and several fine. Miguel Morales was sentenced to 12 months and 1 day in custody, and was required to forfeit $140,000.
Alexander and Ruben Martinez were each sentenced to 33 months in custody and three years of supervised release. Their companies, Line of Sight and Desert Blue Moon, were sentenced to five years’ probation and fines of $45,000 and $20,000 respectively. Jennifer Louise White was sentenced to 24 months in custody, and ordered to pay fine of $25,000.
Onetime Workers’ Compensation applicant attorney Sean E. O’Keefe received a sentenced of 13 months in custody, and was required to forfeit $300,000 in ill-gotten gains. San Diego chiropractor Steven J. Rigler was sentenced to six months in custody, and was ordered to forfeit $150,000. The court substantially reduced both defendants’ sentences because they cooperated with authorities soon after being confronted by agents, and played critical roles in revealing the scope of the corrupt network.
Throughout the sentencing hearings, Judge Bashant expressed dismay that the defendants scammed a system “that’s set up to help people that really need the help.” She further expressed concern that these crimes would undermine public support for social safety-nets, such as the Workers’ Compensation system for injured workers. She expressed particular disappointment that licensed professionals like attorney O’Keefe and Dr. Rigler would engage in the fraud: “You are the most educated. You should know better,” she reproached them.
This week’s sentencing hearings, along with the conviction and sentence of Beverly Hills Radiologist Dr. Ronald Grusd, bring to a successful close the first wave of cases brought by the U.S. Attorney’s Office and its law enforcement partners to combat fraud in the California Workers’ Compensation System.
“It is unfortunate that some individuals see only an opportunity to profit in a system designed to aid injured workers,” said U.S. Attorney Robert S. Brewer, Jr. “What’s more, this crime corrupted the doctor-patient relationship. A doctor’s medical decisions should be based on the best interest of the patient, not the highest bidder.”
“Health care fraud betrays vulnerable patients and steals funds meant to care for injured workers,” said FBI Special Agent in Charge John Brown. “The cases in 'Operation Back Lash' have shown that these medical professionals, doctors, and attorneys who took bribes chose profit over their patients. This massive investigation, with over 30 convictions to date, demonstrates the FBI's commitment to finding those who commit fraud and bringing them to justice.”
Anyone with information about healthcare fraud may call the FBI at 1-800-CALL-FBI, or 1-800-225-5324 or the California Department of Insurance’s toll-free fraud hotline, 800-927-4357.
DEFENDANTS
United States v. Grusd, et al., 15cr2821-BAS Sentence
Ronald Grusd, Los Angeles, CA 10 years, $1.3 million forfeiture, $250,000 fine
California Imaging Network Medical Group 5 years’ Probation, $500,000 fine
Willows Consulting Company 5 years’ Probation, $500,000 fine
Alex Martinez, El Centro, CA 37 months’ custody
Ruben Martinez, Murietta, CA 33 months’ custody
Line of Sight, Inc. 5 years’ Probation, $45,000 fine
Desert Blue Moon, Inc. 5 years’ Probation, $20,000 fine
United States v. Iglesias et al, 16CR0131-BAS
Fermin Iglesias 60 months’ custody, $1,005,000 forfeiture
MedEx Solutions 5 years’ Probation, $500,000 fine
Meridian Medical Resources 5 years’ Probation, $500,000 fine
Miguel Morales 12 months 1 day custody, $140,000 forfeiture
United States v. Garcia, 15CR2820-BAS
Julian K. Garcia, National City, CA 33 months’ custody, $10,000 fine
United States v. White, 16CR2905-BAS
Jennifer Louise White, Glendale, CA 24 months, $25,000 fine
United States v. O’Keefe, 14CR2343-BAS
Sean Enrique O’Keefe 13 months, $300,000 forfeiture
United States v. Rigler, 15CR2773-BAS
Steven J. Rigler 6 months, $150,000 forfeiture
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego County District Attorney’s Office
California Department of Insurance
Northern District of Iowa U.S. Attorney’s Office Collects over $4,000,000 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
U.S. Attorney Peter E. Deegan, Jr. announced today that the Northern District of Iowa collected $4,488,405.85 in criminal and civil actions in Fiscal Year 2018. Of this amount, $1,839,911.31 was collected in criminal actions and $2,648,494.54 was collected in civil actions.
Additionally, the Northern District of Iowa worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $3,865,556.19 in civil cases pursued jointly with these offices.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“This office is committed to holding wrongdoers financially responsible for their actions and their crimes,” Deegan said. “Collecting money from those who commit crimes and profit at the expense of others is a vital part of our mission. We will continue to work diligently to collect money for the federal treasury and return money to victims of crime.”
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
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New Orleans Man Sentenced to 105 Months for Felon in Possession of a Firearm ChargeRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that United States District Court Judge, Lance M. Africk, sentenced RODNEY LAVALAIS, age 33, of New Orleans, to 105 months of imprisonment, to be served in the United States Bureau of Prisons. The sentence will run concurrent with January 10, 2019 state court convictions in which LAVALAIS was sentenced to 5 years in the Louisiana Department of Corrections. Following his term of imprisonment, LAVALAIS will be placed on 3 years of supervised release. On March 22, 2018, LAVALAIS pled guilty to possessing a firearm after being convicted of a felony offense.
LAVALAIS’ case has been designated as a Project Safe Neighborhoods (PSN) case. 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.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kenner Police Department in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.