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4 April 2019
New Mexico Man Sentenced to Four Years in Prison for Role in Multi-State Dog Fighting ConspiracyRead the Press Release
TRENTON, N.J. – A New Mexico man was sentenced today to 48 months in prison for his role in a multi-state dog fighting conspiracy, U.S. Attorney Craig Carpenito of the District of New Jersey and Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division announced.
Robert Arellano, 65, of Albuquerque, New Mexico, was convicted Oct. 16, 2018, of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, and two felony counts of selling, transporting, and delivering dogs intended for use in an animal fighting venture. Arellano also pleaded guilty to three felony counts of possessing a dog intended for use in an animal fighting venture in a related federal case in New Mexico that was consolidated with his New Jersey case for sentencing. Judge Peter G. Sheridan presided over the trial and imposed the sentence today in Trenton federal court.
Three other defendants were convicted as part of the same jury trial; two defendants will be sentenced on May 29, 2019, and the third defendant will be sentenced on May 30, 2019.
“Dog fighting is vicious and cruel,” U.S. Attorney Carpenito said. “Beyond the needless suffering it inflicts on animals, it exacts a toll on local animal shelters, humane organizations, and the taxpayers of New Jersey. As today’s sentencing shows, if you fight dogs in New Jersey, you will face prosecution and imprisonment.”
“Our justice system will not tolerate the torment and death of animals in the fighting ring, as this week’s sentencing proceedings demonstrate,” Assistant Attorney General Clark said. “In our Division, we will continue to place a high priority on pursuing and prosecuting illegal animal fighting ventures across the country.”According to documents filed in this case and related cases and the evidence at trial:
Arellano and his associates regularly fought dogs – including to the death – and repeatedly trafficked in dogs with other dog fighters across several states for the purpose of dog fighting. Arellano and the other defendants also maintained significant numbers of fighting dogs and substantial dog fighting equipment, such as dog treadmills, intravenous drug bags and lines, “breeding stands” used to immobilize female dogs, and chains weighing up to several pounds per linear foot. A defendant who pleaded guilty to charges in a related case admitted that his dog died in his car on the way home after a dog fight. Evidence at trial showed that dog deaths from fighting were a common outcome. Another defendant convicted at trial attempted to set up a “class” for dog fighters to practice administering I.V. fluids to injured dogs, using live dogs as their practice subjects.
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture-Office of Inspector General said. “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
In addition to the prison term, Judge Sheridan sentenced Arellano to three years of supervised release.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, eleven defendants from five states have been convicted and sentenced to a total of 164 months in prison as part of Operation Grand Champion. Additionally, 113 dogs have been rescued, and either surrendered or forfeited to the government.
The government is represented by Assistant U.S. Attorney Kathleen O’Leary of the District of New Jersey and Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section.
The case is being investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the Federal Bureau of Investigation.
Defense counsel: Samuel Bregman Esq., Albuquerque, New Mexico
New Haven Oral Surgeon Pays $252K to Settle False Claims AllegationsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ROBERT SORRENTINO, DDS and ORAL AND MAXILLOFACIAL SURGICAL ASSOCIATES P.C. have entered into a civil settlement agreement with the federal and state governments and have agreed to pay more than $252,000 to resolve allegations that they violated the federal and state False Claims Acts.
Sorrentino is the former owner and operator of Oral and Maxillofacial Surgical Associates P.C., (“OMSA”), a dental practice in New Haven. Sorrentino sold his practice and retired in November 2014.
The allegations against Sorrentino and OMSA involve fraudulent billing to Medicaid for oral surgery and maxillofacial services. The services include deep sedation or general anesthesia services, which were not provided, and the removal of bone or tissue, which were either not performed or were encompassed in services covered under claims for extractions that Sorrentino and OMSA submitted for the same date of service. The services also include surgical reduction of osseous tuberosity, which were not performed or were medically unnecessary.
To resolve the allegations under the federal and state False Claims Acts, Sorrentino and OMSA have agreed to pay $252,913.26 in order to reimburse the Medicaid program, which covers conduct occurring from January 1, 2010 to December 31, 2011.
Under the federal False Claims Act, the government can recover up to three times its actual damages, plus penalties of $11,181 to $22,363 for each false claim.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services, and the Connecticut Office of the Attorney General. The case was handled by Assistant U.S. Attorney Anne Thidemann, and Assistant Attorney General Robert Teitelman of the Attorney General’s Office.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
New Britain Man Pleads Guilty to Illegal Possession of Loaded HandgunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN ANDERSON, 38, of New Britain, pleaded guilty today in Hartford federal court to one count of possession of a firearm and ammunition by a convicted felon.
According to court documents and statements made in court, on October 11, 2018, Hartford Police officers responded to a ShotSpotter detection system alert of gunfire in the vicinity of Vernon Street. At the scene, officers observed Anderson and another man pacing back and forth before entering a vehicle. When officers approached the vehicle, they saw live ammunition in the center console cup holder. A subsequent search of the car revealed a loaded Ruger Model EC9S 9mm semi-automatic handgun with an obliterated serial number underneath the seat Anderson had occupied. Anderson later admitted to ownership of the firearm.
Anderson’s criminal history includes state felony convictions for burglary in the third degree and assault in the second degree.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Anderson is scheduled to be sentenced by U.S. District Judge Michael P. Shea on June 27, 2019, at which time he faces a maximum term of imprisonment of 10 years.
Anderson has been detained since his arrest on October 11.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
NEPA Doctor Sentenced to over 27 Years’ Imprisonment for Drug Distribution Resulting in Death, Money Laundering and Tax EvasionRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Fuhai Li, age 54, of Milford, Pennsylvania, was sentenced to 330 months’ imprisonment followed by six years supervised release on April 3, 2019, by United States District Court Judge A. Richard Caputo for unlawfully prescribing oxycodone and other opioids to 23 former patients, including a Honesdale woman who died as a result of using the pills.
According to United States Attorney David J. Freed, Li was convicted by a jury on June 5, 2018 for drug distribution resulting in death, money laundering and tax evasion. Li unlawfully prescribed oxycodone to a pregnant woman outside the usual course of medical practice and not for a legitimate medical purpose. That woman gave birth to an opioid-dependent baby 11 days after Li prescribed her 120 oxycodone 30 milligram tablets. A neo-natal specialist testified that the baby spent ten days in intensive care withdrawing from the oxycodone prescribed to his mother by Li.
During the five-week trial before Senior U.S. District Court Judge A. Richard Caputo, prosecutors from the U.S. Attorney’s Office presented the testimony of 19 former patients and three former employees of Li, eight pharmacists, three other physicians, an expert on pain management, the medical records for 39 former patients of Li, and the testimony of federal law enforcement agents and investigators from the Drug Enforcement Administration (DEA) and its Diversion Division, and Internal Revenue Service (IRS) special agents.
Li owned and operated the Neurology and Pain Management Center in Milford, Pike County, Pennsylvania. Li was a physician licensed by the Commonwealth of Pennsylvania and authorized to prescribe Schedule II controlled substances for legitimate medical purposes and in the usual course of professional practice.
Li repeatedly prescribed oxycodone and other opioids outside the usual course of medical practice and not for a legitimate medical purpose.
Former patients testified that Li repeatedly prescribed them high doses of oxycodone and other opioids every month over several years without performing medical examinations and without verifying their prior medical treatment.
Evidence was presented that Li repeatedly falsified patient medical records and made material omissions in those records in an effort to legitimize the unlawful prescriptions.
Prosecutors presented evidence that between August 2011 and January 2015, Li wrote 26,985 prescriptions for Schedule II controlled substances, 99.37% of which were written for opioids. This included 18,115 prescriptions for oxycodone, of which 12,129 were written for oxycodone 30 milligrams, the highest dosage available in short acting oxycodone. Other opioids frequently prescribed by Li included methadone, OxyContin, hydrocodone and hydromorphone.
Former patients testified that they became dependent and addicted to opioids as a result of Li’s prescriptions. Evidence also established that Li prescribed high dose opioids to patients who he knew had recently completed drug rehabilitation and detoxification programs, resulting in those patients becoming addicted again to opioid pain medication.
Several former patients testified that they earned money by selling drugs prescribed for them by Li and used part of the money to buy heroin to support their own addiction. Some of those former patients also subsequently sold heroin on the streets of Pennsylvania and New Jersey.
One former female patient testified that she had sex with Li on almost every visit to his office during a four-year time period. Li prescribed that patient high doses of various opioids for approximately four years. Two additional former female patients testified to inappropriate sexual conduct by Li during office visits.
The jury also convicted Li of using two medical offices for the purpose of unlawfully prescribing opioids. Li’s first medical office was located at 104 Bennett Avenue in Milford, and the second office was located at 200 3rd Street in Milford.
DEA agents and investigators executed search warrants at Li’s Milford office and his residences in Milford and East Stroudsburg on January 29, 2015. Agents seized electronic medical records from Li’s office, and seized more than $1 million in cash, which was hidden under beds and in closets in his residences. Evidence at trial showed that many of Li’s patients paid cash for visits, drug screens, office tests, and injections.
The money laundering convictions related to Li’s use of criminal proceeds to pay off the mortgage on his East Stroudsburg residence on November 19, 2012, and to purchase his 200 3rd Street, Milford office on August 29, 2013. Li had $385,572.05 wired from a bank account funded in part by criminal proceeds to pay off the mortgage on the East Stroudsburg residence. He subsequently withdrew $158,699.30 from a bank account funded in part by criminal proceeds to purchase the Milford office.
Li was also convicted of tax evasion for the tax years 2011, 2012, and 2013. An IRS agent testified that Li underreported his taxable income for those years by more than $800,000.
The jury’s verdict also included the forfeiture to the United States of $1,030,960 in cash that was seized from Li’s two residences; $1,036,079.36 seized from various bank accounts; real property located at 200 3rd Street, Milford (Li’s medical office); and real property located at 4005 Milford Landing Drive, Milford. Judge Caputo signed a Preliminary Order of Forfeiture for these identified assets at the sentencing.
The four-year long investigation in this case was conducted by the Drug Enforcement Administration (DEA) and its Diversion Division, the Internal Revenue Service’s Criminal Investigation Division, and the Pike County District Attorney’s Office. Assistant U.S. Attorneys Michelle Olshefski, Francis P. Sempa and Evan Gotlob prosecuted the case.
This case was prosecuted as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and opioid traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit opioid trafficking offenses.
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. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Munster Man Sentenced to 29 Years in PrisonRead the Press Release
HAMMOND – Eric P. Krieg, age 47, of Munster, Indiana, was sentenced before U.S. District Court Judge Joseph S. Van Bokkelen upon his guilty plea to knowingly making an unregistered destructive device, mailing a destructive device, malicious use of explosive materials, and mailing a threatening communication, announced U.S. Attorney Kirsch.
According to documents in this case, Krieg was sued for making disparaging statements on his online blog. To settle the lawsuit, Krieg had to pay $45,000 and post an apology on his blog. Krieg retaliated by constructing a pipe bomb and placing it in the mail, addressed to the home of the attorney who represented the individual who had sued Krieg. The bomb detonated prematurely in the East Chicago Post Office injuring a female postal employee.
Krieg also made threats arising from a grudge he had against another individual. He placed a bullet wrapped in tape in the mail addressed to that individual with the message, “The next one will be in the back of your head.”
US Attorney Kirsch said, “I am pleased that Judge Van Bokkelen accepted my sentencing recommendation as set forth in the plea agreement. For his conduct, Krieg has been severely punished. Krieg intended to send a message of fear and to harm those with whom he had disagreements. He failed to do physical harm to his enemies, but not for lack of trying. And, his conduct resulted in injury to a totally innocent postal worker just trying to do her job. This should have never happened. The sentence of 29 years, imposed today, sends a strong and clear message that individuals who engage in this type of conduct – sending bombs through the mail, intending to harm or kill others – will be brought to justice. I am thankful to all the law enforcement officials who participated in this case for their service and hard work, bringing this matter to a final and just resolution.”
“The public has a right to expect the U.S. Mail to be safe, and Mr. Krieg’s actions eroded that trust when he mailed a pipe bomb that exploded and injured an East Chicago Postal employee in September of 2017,” said Inspector in Charge Patricia Armstrong, of the U.S. Postal Inspection Service’s Detroit Division. “The investigative collaboration with our law enforcement partners and our brave, quick-thinking Postal employees ensured Mr. Krieg faced swift justice.”
“This sentence sends a strong message that actions such as Mr. Krieg’s, which endanger the public, will not be tolerated,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “The FBI and our law enforcement partners will continue to diligently identify and investigate those who put lives at risk through their violent actions.”
“The ATF takes seriously the illegal manufacturing of destructive devices coupled with serious threats of intimidation,” remarked Special Agent in Charge Tim Jones of the Chicago Field Division of the ATF. “We will continue to work alongside our law enforcement partners to investigate violent threats and protect the community.”
This case resulted from an investigation by the United States Postal Inspection Service; Federal Bureau of Investigation; Bureau of Alcohol, Tobacco Firearms and Explosives; United States Marshal’s Service; East Chicago Police; Hammond Police; Indiana State Police; Munster Police; and Porter County Sheriff’s Department. This case was prosecuted by Assistant United States Attorney Jennifer Chang.
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Morris County, New Jersey, Man Charged with Possessing Bombs, and Being Felon in Possession of Guns and Explosive MaterialsRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man has been arrested and charged in connection with allegedly building and exploding a bomb, U.S. Attorney Craig Carpenito announced.
Christopher Faschan, 31, of Landing, New Jersey, is charged by complaint with one count each of possession of numerous explosive/destructive devices, possession of precursor materials, and being a felon in possession of explosive materials, firearms and ammunition. He is scheduled to appear April 5, 2019, before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to documents filed in this case and statements made in court:
On Feb. 1, 2019, Faschan drove to the home of “Individual 1” in Stanhope, New Jersey, and displayed what he claimed to be a bomb to Individual 1. According to Individual 1, Faschan stated: “this may be a good area to let this thing off” before leaving the area. Shortly thereafter, Faschan detonated the bomb in the area of Lake Lackawanna in Stanhope. He then called Individual 1 and stated: “That’s something that could easily be put under someone’s car, not that I would do that or anything.”
On Feb. 4, 2019, law enforcement agents interviewed Faschan, who said that he had ignited the bomb. He described it as two pounds in weight and explained how he used and mixed Potassium Perchlorate, Aluminum Powder, and Tannerite to make several bombs that were in his home. At Faschan’s home, law enforcement agents found explosive devices, precursor materials, weapons and ammunition.
U.S. Attorney Carpenito credited special agents of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; officers of the Byram Police Department, under the direction of Chief Peter J. Zabita; the Roxbury Police Department, under the direction of Chief Marc Palanchi; the Sussex County Prosecutor’s Office, under the direction of Francis A. Koch; Morris County Sheriff James M. Gannon; Morris County Prosecutor Frederic M. Knapp; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the charges.
The counts of possession of a destructive device, possession of explosive materials by a convicted felon, and possession of firearms by a previously convicted felon each carry a maximum penalty of 10 years in prison and a $250,000 fine.
The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Monroe County Man Convicted of Federal Gun and Drug CrimesRead the Press Release
OXFORD – A Monroe County man was convicted Tuesday night of a federal gun violation and drug trafficking crimes following a two-day jury trial presided over by Senior US District Judge Neal Biggers. Jerry Lee Quinn, 50, formerly of Aberdeen and West Point, was found guilty of Possession of a Firearm by a Convicted Felon, Possession of a Controlled Substance with Intent to Distribute, and Distribution of a Controlled Substance. The announcement regarding Quinn’s conviction was made by Joseph Frank, Supervisory Special Agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives in Oxford, and U.S. Attorney William C. Lamar.
Information presented during the trial revealed that Quinn was a convicted felon who was on the run from law enforcement with several outstanding arrest warrants in September of 2013. During an investigation into Quinn’s whereabouts, investigators obtained information on the night of September 11, 2013, that Quinn was at a residence in Southaven, Mississippi, and surrounded the house in an attempt to apprehend Quinn. Quinn fled the residence, but was eventually apprehended after a struggle with Desoto County Sheriff’s Deputies and members of the US Marshals Fugitive Task Force. During a search of bags belonging to Quinn that were found at the residence, officers located two loaded firearms, ammunition, and marijuana packaged for sale.
Following the verdict, U.S. Attorney William C. Lamar praised investigators for their joint efforts to apprehend Quinn, and reiterated the commitment of his office to hold accountable those who threaten the safety of our neighborhoods through violence, drug trafficking and illegal possession of firearms. Lamar remarked, “This investigation and today’s verdict are the result of a collaborative and targeted effort by local and federal law enforcement to ensure the safety and security of our communities. We are committed to doing everything possible to keep our neighborhoods, towns and cities safe and when law enforcement agencies work together, we can hold accountable those individuals who violate the law and threaten the safety of our residents. We will continue to work diligently with our local, state and federal partners to enforce the federal firearms laws and to see that individuals who violate those laws are held accountable.”
The investigation, arrest and prosecution of Quinn was the result of a joint Federal and State investigation by ATF, the US Marshals Gulf Coast Regional Fugitive Task Force, Desoto County Sheriff’s Office, Southaven Police Department and Olive Branch Police Department. The case was prosecuted as a part of the Project Safe Neighborhoods Initiative by AUSA Robert Mims and AUSA Susan Bradley.
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Minot Woman Indicted for Bank Fraud and Identity TheftRead the Press Release
BISMARCK – United States Attorney Christopher C. Myers announced that on April 3, 2019, Nicole Marie Rogers, age 31, from Minot, ND, was charged by Indictment with two counts of Bank Fraud, Possession of Stolen Mail, and Aggravated Identity Theft.
The Indictment alleges that from December 2018 to March 2019, while in McLean and Ward Counties, Ms. Rogers possessed hundreds of articles of stolen mail, two of which were checks she altered to reflect that she was entitled to $43,334.22, and deposited or cashed them at financial institutions. Rogers also committed aggravated identity theft when she attempted to commit a separate bank fraud crime by using a stolen passport to cash another stolen check.
Roger’s initial appearance was before Magistrate Judge Alice R. Senechal, on March 26, 2019. After a detention hearing on March 29, 2019, Judge Senechal ordered Rogers be detained pending trial. Ms. Rogers' arraignment is scheduled for Friday, April 12, 2019, at 10:30 a.m. in Bismarck.
The Indictment in this case is not evidence of guilt. The defendant is presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.
This case was investigated by United States Postal Inspection Service, the McLean County Sheriff’s Department, and the Minot Police Department.
This case is being prosecuted by Assistant U.S. Attorney Jonathan J. O’Konek.
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Mineral County man admits to role in a drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Nathan E. Carpenter, of Elk Garden, West Virginia, has admitted to his involvement in a drug distribution conspiracy, United States Attorney Bill Powell announced.
Carpenter, age 29, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” Carpenter admitted to working with others to distribute methamphetamine from August 2017 to June 2018 in Mineral, Hardy, and Hampshire Counties and elsewhere.
Carpenter faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands 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 Robert W. Trumble presided.
Millinocket Man Pleads Guilty to Theft of a FirearmRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Randolph Bourgoin, III, 31, of Millinocket, Maine, pled guilty yesterday in U.S. District Court to theft of a firearm from a federally licensed dealer.
According to court records, on November 27, 2018, Bourgoin stole the gun from a display case at a gun dealer in Milo. The theft was caught on surveillance video, and Mr. Bourgoin later admitted to the theft.
Bourgoin faces up to 10 years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Milo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. 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
Milford Man Sentenced to 12½ Years for RobberyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Richard F. Moloney, 43, of Milford, Maine, was sentenced today in U.S. District Court by Judge Lance E. Walker to 12½ years in prison and three years of supervised release for interfering with commerce by robbery and bank robbery. The charges arose from the robbery of the County Road Market in Milford and the Bangor Savings Bank branch located in Orono, Maine in June 2018.
Court records reveal that on June 10, 2018, the defendant entered the County Road Market, pointed what appeared to be a dark-colored handgun at a cashier and told her to give him money. The defendant was wearing a grey hooded sweatshirt and sunglasses, and had socks on his hands and a cloth over his face. A second cashier opened the register and put the cash tray on the counter. The defendant absconded with the money.
Two days later, the defendant robbed a Bangor Savings Bank branch. He was wearing a black mask, a grey hooded sweatshirt with the hood pulled up, sunglasses with reflective lenses, jeans, and white socks on his hands. The defendant walked to the teller counter where a customer was conducting a transaction and displayed a note to the bank teller that read: “Give me all the money fast in a bag. No tracer or dye packs got a gun.” The teller gave the defendant cash from the drawer to the defendant and he absconded with it.
The investigation was conducted by the Penobscot County Sheriff’s Office; the Old Town, Bangor and Orono Police Departments; the Maine State Police Crime Laboratory; the Maine State Police; and the FBI.
Mexican National Indicted on Methamphetamine Distribution and Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging ALEJANDRO AVILEZ-PEREZ, age 41, of Mexico, with Conspiracy to Distribute more than 50 grams of Methamphetamine, Possession with Intent to Distribute more than 50 grams of Methamphetamine, and Illegal Reentry of a Deported Alien.
If convicted of each drug count, AVILEZ-PEREZ, having been previously convicted of a serious drug felony (Possession with Intent to Distribute Cocaine) would face a minimum of 15 years imprisonment and a maximum penalty of life imprisonment, a $20,000,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal reentry subsequent to an aggravated felony conviction, AVILEZ-PEREZ, previously convicted of Possession with Intent to Distribute Cocaine and Illegal Reentry of a Deported Alien, would face maximum penalties of 20 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by DEA, ICE’s Enforcement and Removal Operations and Homeland Security Investigations, State Bureau of Investigation, and the Nash County Sheriff’s Office.
Mexican National Charged for Failure to Register or Update His Registration as Sex OffenderRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Jose Reyes-Delgado, 57, a Mexican national residing in Fresno, charging him with failure to register or update his registration as a sex offender, U.S. Attorney McGregor W. Scott announced.
According to court documents, from April 2018 until March 2019, Reyes-Delgado was present in the State of California but failed to register as a sex offender as required by law. Reyes-Delgado was previously convicted in 1989 in California for lewd conduct with a child under 16, at which time he acquired his registration requirement.
This case is the product of an investigation by the U.S. Marshals Service, and ICE Enforcement and Removal Operations. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
If convicted, Reyes-Delgado faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Marijuana User Who Illegally Possessed a Gun Sentenced to Two Years in Federal PrisonRead the Press Release
A man who illegally possessed a firearm was sentenced April 3, 2019, to two years in federal prison.
Trevon Parham-Holmes, age 20, from Cedar Rapids, Iowa, received the prison term after an October 30, 2019, guilty plea to possession of a firearm and ammunition by a drug user.
Evidence during the case established that police tried to stop a car in Waterloo after receiving that information that one of the occupants was fighting with an area gang. The car ignored the police, failed to stop, and led officers on a pursuit, during which the occupants of the vehicle, including Parham-Holmes, threw multiple guns from the car. The gun Parham-Holmes possessed had previously been stolen.
Parham-Holmes was sentenced in Cedar Rapids by United States District Court Judge C. J. Williams. Parham-Holmes was sentenced to 24 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Parham-Holmes was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department..
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2049.
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Man charged with making false statements involving international terrorismRead the Press Release
MISSOULA—A man who was arrested at a Bozeman shooting range on Wednesday after having recently traveled to Montana from New York appeared in court today on false statement and firearm charges. U.S. Attorney Kurt Alme for the District of Montana and Special Agent in Charge Paul Haertel of the FBI’s Salt Lake City Field Office made the announcement.
Fabjan Alameti, 21, had an initial appearance on a criminal complaint before U.S. Magistrate Judge Jeremiah C. Lynch. The complaint charges Alameti with possession of a firearm by unlawful user of a controlled substance and with making false statements involving international terrorism.
Court documents filed in the case said law enforcement officers arrested Alameti without incident at a Bozeman shooting range. Alameti was taken into custody after he allegedly took possession of an M1A firearm he had rented.
“Fabjan Alameti recently moved to Bozeman from another state,” said Paul Haertel, special agent in charge of the FBI’s Salt Lake City Field Office. “We want to make it absolutely clear that Mr. Alameti has no known ties to Montana or any affiliation with the Muslim community in Bozeman,” he said.
The complaint is merely an accusation and Alameti is presumed innocent until proven guilty. If convicted of the most serious crime, Alameti faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
Judge Lynch ordered Alameti be detained. Alameti reserved his right to request a detention hearing at later date.
Assistant U.S. Attorney Jeff Starnes and Trial Attorney Rebecca Magnone, from National Security Division’s Counterterrorism Section, are prosecuting the case, which was investigated by the FBI.
Pacer case reference. 19-mj-0029. The case may be followed through the U.S. District court Calendar and the PACER system. To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Man Sentenced for Distributing Methamphetamine into Red Cliff ReservationRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Tyrone Butterfield, 39, Red Cliff, Wisconsin, pleaded guilty and was sentenced yesterday by U.S. District Judge William M. Conley to 14 years in federal prison for distributing methamphetamine.
The amount of methamphetamine attributable to Butterfield was approximately 680 grams, which Judge Conley described as a conservative estimate. Butterfield conspired with others, including Ryan Witter, whom he met when they were in prison together. Butterfield arranged for the shipment of numerous packages of methamphetamine from sources in California to Bayfield, Wisconsin. At Butterfield’s direction, several of his associates wired money to California and accepted packages of methamphetamine on his behalf. Almost all of the methamphetamine was distributed into the Red Cliff Reservation.
The Court considered Butterfield’s role as a manager or supervisor of the drug conspiracy and also his use of his residence for the purpose of distributing methamphetamine when imposing his sentence.
Tyrone Butterfield and three other individuals were charged for their roles in this methamphetamine distribution conspiracy. Butterfield is the last to plead and be sentenced. Simon Sayers was sentenced to 90 months for his role in the conspiracy. Rita Witter was sentenced to three years, and Ryan Witter, Rita Witter’s son, was sentenced to 126 months.
The charge against Butterfield was the result of an investigation conducted by the Red Cliff Police Department; Wisconsin Department of Justice Division of Criminal Investigation; U.S. Postal Inspection Service; Drug Enforcement Administration in Wisconsin and California; Bayfield County Sheriff’s Office; Ashland Police Department; and the Fremont (California) Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Diane Schlipper.
Man Sentenced to 30 Years in PrisonRead the Press Release
HAMMOND – Rickey D. Brown, Jr., age 41, of Hobart, Indiana, who previously lived in Florida, was sentenced before U.S. District Court Judge Joseph S. Van Bokkelen upon his plea of guilty to possession and production of child pornography, announced U.S. Attorney Kirsch.
Brown was sentenced to 360 months in prison followed by 20 years of supervised release.
“This 30 year sentence should send a strong message to all other sexual predators,” said U.S. Attorney Kirsch. “Children are the most vulnerable victims and my Office will do everything in our power to prosecute and to seek appropriate sentences against sexual predators.”
According to documents in the case, between January 1, 2014 and April 29, 2015, Rickey D. Brown produced photographs of a six to seven-year-old child diagnosed with Autism, who he persuaded to engage in sexually explicit conduct. He admitted to molesting the child on more than one occasion while the child was in his care. Brown also possessed child pornography, including depictions of minors under age twelve.
This case was investigated by the FBI, and prosecuted by Assistant United States Attorney Jill R. Koster.
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Long Island Man Pleads Guilty to Heroin Distribution ConspiraciesRead the Press Release
Earlier today, in federal court in Brooklyn, Stanley Fuller pleaded guilty to two heroin distribution conspiracies before United States Magistrate Judge Lois Bloom. The conspiracies, charged in two indictments, detail Fuller’s role as a supplier of substantial quantities of heroin to co-conspirators who trafficked the drugs in Jamaica, Queens. When sentenced, Fuller faces a statutory maximum of life in prison for the first conspiracy, and up to 20 years’ imprisonment for the second conspiracy.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations, New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division, and James P. O’Neill, Commissioner, New York City Police Department, announced the guilty plea.
Between April 2013 and July 2015, law enforcement agents intercepted telephone communications during which Fuller discussed the quality of heroin being sold under the brand names “Sweet Dreams,” “Pepsi” and “Coca Cola.” In May 2017, following his arrest and indictment for heroin distribution conspiracy, Fuller was released on bond and placed on home confinement. Notwithstanding, Fuller continued supplying heroin to street-level dealers for distribution. Law enforcement agents again intercepted numerous telephone communications during which Fuller discussed heroin being sold under the brand names “9 & 1/2” and “Tom & Jerry.” In January 2019, Fuller was charged in a second indictment with heroin distribution conspiracy while on pre-trial release.
Fuller is the last of 12 defendants in the first indictment to plead guilty, nine of whom have been sentenced.
The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Marcia M. Henry, Alicia N. Washington, Erin Reid, Jonathan Algor, Michael Robotti and Lauren Elbert are in charge of the prosecution.
The Defendants:
STANLEY FULLER (also known as “We,” “Webo” and “Morty”)
Age: 43
Valley Stream, New YorkE.D.N.Y. Docket Nos. 15-CR-382 (S-2) (JBW) and 19-CR-21 (JBW)
Lee County Ambulance Service and its Director Agree to Pay $253,930 to Resolve Allegations of False Claims to MedicareRead the Press Release
LEXINGTON, Ky. – The Lee County Fiscal Court (“Lee County”) and the former director of its ambulance service, Joseph Broadwell, have agreed to resolve civil allegations that Lee County Ambulance violated the False Claims Act, a federal law that prohibits the submission of false or fraudulent claims, agreeing to pay $253,930 to the federal government.
The agreement resolves a civil lawsuit that was filed by the United States against Lee County and Broadwell, on September 14, 2018. In the lawsuit, the United States alleged that the ambulance service, at Mr. Broadwell’s direction, submitted over one thousand false claims to Medicare, seeking payment for unnecessary non-emergency ambulance transports, from January 2013 to June 2016. Medicare pays for non-emergency ambulance transports only if the patient’s condition is such that taking other forms of transportation would endanger the patient’s health. The United States alleged that Lee County and Broadwell knowingly disregarded the Medicare rules related to ambulance transports, despite having received years of training on these rules, and submitted claims to Medicare for the transport of patients to and from dialysis clinics without the required medical need. The United States further alleged that the ambulance service and Broadwell made false statements in the medical records supporting the patients’ medical conditions, to secure the reimbursement.
As part of the agreement, Lee County and Broadwell acknowledged that they engaged in this conduct, including the submission of false claims and the creation of false records. In the reaching the agreement, Lee County admitted to submitting false claims to Medicare for non-emergency ambulance transports of two patients to and from dialysis treatment. The transports, which occurred from January 1, 2013, to June 15, 2016, resulted in the submission of over one thousand false claims for reimbursement. Lee County also admitted that it made, or caused to be made and used, false records related to the medical conditions of the patients. Lee County acknowledged that the claims for reimbursements submitted to Medicare were done with a reckless disregard for the truth or falsity of the information submitted. Lee County agreed that its conduct caused damage to the United States.
Last year, the United States entered into additional settlement agreements, with paramedic Daniel Williams, who served as Lee County Ambulance’s Captain of Operations, and Lee County’s third-party billing company, Medical Claims Assistance, Inc., to resolve allegations that they also violated the False Claims Act, by causing Lee County’s submission of the false claims. Through these combined agreements, the United States has recovered over $515,000 in connection with Lee County’s submission of false claims to Medicare and Medicaid.
“Lee County Ambulance admitted it submitted false claims to the Medicare Program and received improper payments,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Unfortunately, this conduct represents another example of a common ambulance service scheme, one where Medicare pays hundreds of thousands of dollars to transport patients who simply had no need for an ambulance. No matter who submits them, the payment of false or fraudulent claims damages the public and reduces the limited tax dollars available to pay legitimate claims intended to help program recipients. The public deserves a watchful eye to prevent the submission of false or fraudulent Medicare claims, and our Office will continue to do its part in that effort.”
“Medicare only pays for ambulance transports when a patient cannot be safely transported by other means,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General. “This company billed for patients who could walk unassisted and did not need a stretcher to get them to their medical appointments."
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the Office of the Kentucky Attorney General’s Medicaid Fraud and Abuse Control Unit. Assistant United States Attorneys Jennifer Williams and Mary Melton handled the matter for the United States.
Laurel Man Pleads Guilty to Committing Five Armed Robberies of Pharmacies in Howard, Anne Arundel, and Prince George’s CountiesRead the Press Release
Baltimore, Maryland – Jawanza Kevin Carter, age 22, of Laurel Maryland, pleaded guilty on April 3, 2019, to robbery involving controlled substances, and to carrying and brandishing of a firearm during and in relation to a crime of violence, in connection with the armed robbery or attempted armed robbery of five pharmacies and the theft of tens of thousands of dollars’ worth of opioids.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Acting Chief Paul Herman of the Annapolis Police Department; Anne Arundel County Police Chief Tim Altomare; Acting Chief Russell E. Hamill, III of the Montgomery County Police Department; Chief Lisa D. Myers of the Howard County Police Department; and Anne Arundel County State’s Attorney Anne Colt Leitess.
According to Carter’s plea agreement, between May 5 and November 29, 2017, Carter and his co-conspirator Arthur Prince participated in five armed robberies of pharmacies. In each robbery, Carter pointed a gun at the clerk, and Carter and Prince demanded opioid narcotics such as Oxycodone, OxyContin, Percocet, and Codeine. In most of the robberies, Carter and Prince also stole money from the cash register and/or robbed the clerk.
Specifically, Carter admitted that he robbed: the Howard Pharmacy in Columbia, Maryland on May 5, 2017; the Lorven Pharmacy in Laurel Maryland on June 19, 2017; the Pasadena Pharmacy in Pasadena, Maryland on August 25, 2017; and the Annapolis Professional Pharmacy in Annapolis, Maryland on November 29, 2017. Carter and Prince also attempted to rob the Pace Wellness Pharmacy in Pasadena on August 25, 2017, but were not able to steal narcotics when the clerk didn’t know where the drugs were located. Instead, Carter and Prince stole $180 from the cash register and robbed the clerk of her purse, which contained $50 in cash and credit cards, among other things.
In each robbery, cell-site records showed that Carter’s phone was in the immediate area of the pharmacy at the time of the robbery, and his DNA was found on a reusable shopping bag left by the robbers at the Howard Pharmacy and on a mask Carter wore during the Annapolis Professional Pharmacy that law enforcement later recovered. In addition, law enforcement recovered Carter’s fingerprints on one of the getaway vehicles used by the robbers, and text messages between Carter and Prince concerning one of the robberies. Photos from Carter’s Snapchat account also appear to reflect large purchases in the days and weeks after some of the robberies, including luxury items from Gucci, a gold watch, and designer tennis shoes.
Prince was arrested after the robbery on November 29, 2017, in Odenton, Maryland, not far from where law enforcement located the stolen narcotics. Carter was arrested at the home of his girlfriend in Laurel, Maryland. Searches executed at locations associated with Carter recovered three boxes of .40-caliber ammunition, a gun cleaning kit and related items, and an empty handgun carrying case with a clip in it.
After his arrest and while he was detained, Carter attempted to obstruct justice. In recorded jail calls, Carter instructed his girlfriend to get rid of a bag used in connection with one of the robberies, which she did. On December 4, 2017, Carter coached his girlfriend on what to say to law enforcement about two vehicles used in the robberies that were titled and registered to her. Carter told his girlfriend to tell law enforcement that one of the cars is a “family and friends car,” and that she drove the other vehicle.
Carter faces a maximum of 25 years in prison for robbery involving controlled substances; and a mandatory minimum of seven years and up to life in prison for brandishing of a firearm during and in relation to a crime of violence. Chief U.S. District Judge James K. Bredar has scheduled sentencing for August 21, 2019, at 2:30 p.m.
Co-conspirator Arthur Raymond Prince, age 20, of Laurel Maryland, previously pleaded guilty to aiding and abetting robbery involving controlled substances, and aiding and abetting the brandishing of a firearm during and in relation to a crime of violence, in connection with the armed robberies of five pharmacies. Prince also faces a maximum of 25 years in prison for aiding and abetting robbery involving controlled substances; and a mandatory minimum of seven years and up to life in prison for aiding and abetting the brandishing of a firearm during and in relation to a crime of violence. Judge Bredar has scheduled Prince’s sentencing for April 9, 2019, at 10 a.m.
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, the Prince George’s County Police Department, the Annapolis Police Department, the Anne Arundel County Police Department, the Montgomery County Police Department, the Howard County Police Department, and the Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Paul A. Riley and Brandon K. Moore, who are prosecuting the case.
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Las Vegas Man Convicted of Two Armed Bank RobberiesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was convicted by a jury today to committing two armed robberies at the same bank in Henderson, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
After three days of trial, a federal jury found Anthony Delano Hylton Jr., 33, guilty of two counts of armed bank robbery and two counts of use and carry of a firearm during and in relation to a crime of violence. He was also found guilty of one count of felon in possession of a firearm at a separate bench trial. United States District Judge Howard D. McKibben presided over both trials and scheduled sentencing for September 17, 2019.
The evidence at trial established that on October 7, 2016, Hylton entered a Citibank on S. Eastern Avenue in Henderson, armed with a .45 caliber semi-automatic handgun. Once inside he pointed the gun at the customers and bank employees and ordered everyone to get down on the ground. He jumped over the teller counter and discharged the firearm into the floor. He then demanded money from the tellers while pointing his gun at them. He fled the bank with approximately $69,565. Three months later, on January 17, 2017, he entered the same bank armed with a revolver. He pointed the gun at the customers and bank employees and ordered everyone to the ground. He again jumped over the counter and demanded money from the tellers at gunpoint. The tellers complied and Hylton fled the bank with approximately $13,046.
Hylton is a previously convicted felon for battery with substantial bodily harm in Clark County, Nevada.
At the sentencing hearing, Hylton faces a minimum of 17 years in prison.
The case was investigated by the FBI and Henderson Police Department. Assistant United States Attorneys Lisa Cartier-Giroux and Peter S. Levitt are prosecuting the case.
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Large Volume Cocaine Dealer Sentenced to 125 Months for His Role in South Georgia Drug Crime NetworkRead the Press Release
VALDOSTA— A cocaine distributor in South Georgia involved in trafficking hundreds of kilograms will spend more than ten years in prison for his crimes, said U.S. Attorney Charles “Charlie” Peeler. Henry “Poochie” Austin, II, 49, of Valdosta was sentenced on April 3, 2019 to 125 months in prison and six years supervised released by United States District Judge Hugh Lawson. Mr. Austin was convicted in October 2018 of conspiracy to possess with intent to distribute cocaine and cocaine base following a three day trial and just one hour of jury deliberations. There is no parole in the federal system.
Mr. Austin was involved in a cocaine and crack cocaine distribution ring between 2013 and 2014 stretching from Atlanta to South Georgia, including Tifton, Valdosta, Omega, Hahira, Adel, Moultrie, and other nearby communities. Austin and 18 co-conspirators, all who previously pled guilty and have been sentenced, distributed hundreds of kilograms of cocaine sold as powder and also manufactured into crack cocaine, averaging between 10 to 15 kilograms of cocaine per week. Mr. Austin’s drug dealing career dates back to the 1990s.
“A dangerous drug ring moving hundreds of kilos of cocaine across our state is ended, and all involved have now faced the consequences of their crimes,” said Charles “Charlie” Peeler, the United States Attorney for the Middle District. “I want to thank our law enforcement partners who are tracking down and stopping these illegal and deadly drug networks from causing more harm in our communities.”
This case was investigated by the Drug Enforcement Administration (DEA), Georgia Bureau of Investigation (GBI), Mid-South Narcotics Task Force, and the Tift, Crisp, Cook, Colquitt and Lowndes County Sheriff’s Offices. Assistant United States Attorneys Julia Bowen and Michael Solis prosecuted the case for the United States.
Questions can be directed to Pamela Lightsey, Public Information Officer, and United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Lafayette business owner pleads guilty to stealing nearly $300,000 from three finance companiesRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that Leonard Espree, 55, formerly of Lafayette, pleaded guilty yesterday before Chief U.S. District Judge S. Maurice Hicks Jr. for stealing nearly $300,000 from three finance companies.
According to the guilty plea, Espree was the owner and operator of Ameritek Office Solutions in Lafayette, which sold and serviced office equipment. Espree submitted false documentation in the names of existing local businesses to three finance companies in 2015 and 2016 to obtain payment for office equipment supposedly supplied to these businesses. The three companies approved eight of the transactions for which Espree received a total of $294,292.12. However, Espree never sold or delivered equipment to any of the businesses.
Espree faces up to 30 years in prison, five years of supervised release and a $1 million fine for one count of wire fraud. The court set a July 10, 2019 sentencing date.
The FBI investigated the case. Assistant U.S. Attorney David J. Ayo is prosecuting the case.
Las Cruces Middle School Principal Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Joel Aguilar Villanueva, 42, of Las Cruces, N.M., made his initial appearances in federal court in Las Cruces this morning on a criminal complaint charging him with transporting child pornography in interstate or foreign commerce and possession of child pornography. According to the criminal complaint, Villanueva is the principal of a middle school in Las Cruces public school system. Villanueva remains in custody pending a preliminary hearing and a detention hearing, both of which are scheduled for April 9, 2019.
The investigation resulting in the charges against Villanueva began in Oct. 2018, when the National Center for Missing and Exploited Children received a tip that a certain Twitter account was being used to share videos of suspected child pornography. The investigation revealed that the Twitter account allegedly was subscribed to Villanueva, who listed a Las Cruces-area apartment as his residence. On April 3, 2019, law enforcement officers executed a state search warrant at the apartment, and seized an external hard drive that contained suspected child pornography. Villanueva was arrested while the officers were executing the search warrant.
If convicted of the charges in the criminal complaint, Villanueva faces a statutory mandatory minimum of five years and a maximum of 20 years of imprisonment on the transportation of child pornography charge, and a maximum 20 years of imprisonment on the possession of child pornography charge.
Charges in criminal complaints are only accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Las Cruces office of Homeland Security Investigations, the New Mexico State Police, the Las Cruces Police Department, and the New Mexico Office of the Attorney General. Assistant U.S. Attorney Marisa A. Ong is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc/.
Jury Convicts Independence Man of Illegal Firearm After He Shoots His GirlfriendRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., man was convicted by a federal trial jury today of illegally possessing a firearm that he used to shoot his girlfriend.
William C. McGee, 43, was found guilty of being a felon in possession of a firearm. He was charged as a career criminal due to his prior felony convictions.
Police officers were called to the Great Western Motel in Independence on June 13, 2018, in response to a report from a motel guest who heard gunshots. The caller also told police that the suspected shooter was in a green Toyota Camry, last seen traveling west on 24 Highway.
Officers located the green Toyota Camry in a nearby driveway. McGee was standing beside the vehicle. When he saw the police officers, McGee reached behind his back, pulled out a black Hi-Point 9mm handgun, and threw it over the vehicle. McGee, who had an active arrest warrant for domestic assault, was placed under arrest. The firearm was loaded with one round of 9mm ammunition.
McGee’s girlfriend, who was standing beside him, told officers that McGee had shot her outside their camper home, which was parked at that location, and she had a gunshot wound to her buttocks. Located in the camper were multiple rounds of 9mm ammunition – the same brand of ammunition as found in the firearm.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. McGee has three prior felony convictions for delivery of a controlled substance and prior felony convictions for distributing a controlled substance, possessing a controlled substance, and carrying a concealed weapon.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately 30 minutes before returning the guilty verdict to U.S. Chief District Judge Beth Phillips, ending a trial that began Wednesday, April 3, 2019.
Under federal statutes, McGee is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther and Special Assistant U.S. Attorney Sean T. Foley. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Independence, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Individual Sentenced to 56 Months in Prison for Defrauding the U.S. Army Reserve Recruiting Assistance ProgramRead the Press Release
SAN JUAN, Puerto Rico – Luis De Jesús-Negrón, former Army Reserve Recruiter was sentenced by United States District Judge Aida Delgado-Colón to serve 56 months in prison and to pay restitution in the amount of $19,000 to the US Army, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. De Jesús-Negrón was found guilty of twenty six counts on December 6, 2018 after an eight-day jury trial.
In 2007 United States Army Reserve established the Army Reserve Recruiting Assistance Program (AR-RAP) through a task order under a contract then existing between the National Guard Bureau and the corporation Document and Packaging Broker, Inc. (Docupak). The AR-RAP was a recruiting program designed to offer referral bonus payments to Reserve soldiers to recruit civilians to serve in the Army Reserve. The Program had two primary participants: (1) Recruiters: whose job it was to assist the Docupak subcontractors in enlisting new members into the Army Reserve; and (2) Recruiter Assistants, whose job it was to identify and assist recruit new potential members into the Army Reserve, and assist Recruiters with other related duties. Under the contract specifications of the Program, only Recruiter Assistants were eligible for recruiting referral bonuses.
Luis De Jesús-Negrón, a Recruiter for the Army Reserve at the time of the offenses, was found guilty in Count One of the Second Superseding Indictment of conspiring to intentionally steal and obtain by fraud property belonging to the United States, to wit: the AR-RAP bonus payments. To do so, De Jesús-Negrón and a co-conspirator would set up an online account on the Docupak administered website for the Program; without authorization, utilize the personal identifiying information of the potential Soldiers, given to a Recruiter or the co-conspirator, to create a profile for the potential Soldier in the online Program account of the Recruiter Assistant; make other false entries in the online Program account to make it appear that the potential Soldier had in fact been recruited by the Recruiter Assistant; apply for the Recruiting Program eligible bonuses based on these false misrepresentations; and when the bonuses were approved cause an interstate wire transfer for payment. In a separate scheme, De Jesús-Negrón was found guilty of obtaining money and property from Docupak by falsely representing himself to be another Army Reserve solider who was eligible to be a Recruiter Assistant under the Recruiting Program, so that Luis De Jesús-Negrón could receive referral bonus payments to which he was not entitled. Additional counts of conviction were for wire fraud and aggravated identity theft.
“This former military recruiter defrauded a program designed to enhance military recruitments at a time when qualified Soldiers were desperately needed perform America’s ongoing missions around the world,” said Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service. “DCIS remains fully committed to holding accountable anyone who chooses to fraudulently enrich themselves and violate positions of trust. Today's conviction is a testament to our dedication in the fight against fraud and corruption affecting Department of Defense programs.”
The case was prosecuted by Assistant U.S. Attorney Myriam Y. Fernández-González.
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Houston Man Sentenced to Thirty Years in Prison for Money Laundering Conspiracy and Tax Crimes Relating to Second-Hand Drug SchemeRead the Press Release
A Houston, Texas, man was sentenced today to 360 months in prison for multiple conspiracy and tax charges, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
On Nov. 14, 2018, a jury convicted Kenneth J. Coleman, 52, of nine counts, including conspiracy to commit money laundering, conspiracy to structure currency transactions, corporate tax evasion, filing false tax returns with the Internal Revenue Service (IRS), and failing to file tax returns.
The evidence at trial established that Coleman facilitated the fraudulent sale of second-hand prescription medications to Utah-based Green Valley Medical Distributors, LLC (Green Valley). Coleman owned Acacia Pharma Distributors Inc. (Acacia) and Four Corner Suppliers Inc. (Four Corner), which purchased bottles of prescription medications from illegitimate sources and then sold them to Green Valley, which then sold the medications to pharmacies as brand-new.
Federal regulation requires wholesale distributors of prescription medications to provide to a buyer a pedigree – a written statement identifying each prior sale, purchase or trade of the drugs being sold that includes the business name and information of all parties to the prior transactions, starting with the manufacturer. Coleman and others acting at his direction created false pedigrees and provided the fraudulent documents to Green Valley. Evidence at trial showed that Green Valley would withhold payment to Coleman until it received these false pedigrees.
Coleman and his co-defendant, Marcus Weathersby, deposited proceeds from the fraudulent sale of these second-hand prescription drugs into Acacia’s and Four Corner’s business bank accounts and used the funds to pay the suppliers of the illicit pharmaceuticals. At trial, the government proved that Weathersby and others acting at Coleman’s direction laundered more than $41.5 million of illicit funds, including over $2.9 million in more than 230 cash withdrawals made in amounts less than $10,000, in order to evade bank-reporting requirements.
Coleman also evaded the assessment and payment of Acacia’s and Four Corner’s income tax liabilities, failed to file an individual tax return for tax year 2011, failed to file corporate income tax returns for tax years 2011 and 2012, and filed false individual income tax returns for the tax years 2012 and 2013. The combined loss of corporate and individual income taxes was more than $700,000.
Coleman’s co-defendant, Weathersby, formerly of Houston, Texas, pleaded guilty to conspiracy to commit money laundering and was sentenced in June 2018 to 58 months in prison. He testified at trial against Coleman.
In addition to the term of imprisonment imposed, U.S. District Court Judge David Hittner ordered Coleman to serve three years of supervised release, imposed a criminal forfeiture money judgment of $20,326,464.17, and ordered Coleman to pay $716,986 in restitution to the Internal Revenue Service.
Principal Deputy Assistant Attorney General Richard E. Zuckerman thanked agents of IRS-Criminal Investigation, the Federal Bureau of Investigation, and the Food and Drug Administration-Criminal Investigation, who conducted the investigation, and Trial Attorneys Sean Beaty and Terri-Lei O’Malley of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Zuckerman also thanked U.S. Attorney Ryan K. Patrick of the Southern District of Texas and his office for their assistance in this matter.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Honduran National Sentenced for Illegal Re-entryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that RICARDO MACHADA-BACA age 25, a citizen of Honduras, was sentenced yesterday by U.S. District Judge Lance M. Africk after previously pleading guilty to a one-count Bill of Information for illegally re-entering the United States in violation of Title 8, United States Code, Section 1326(a).
According to the Bill of Information, MACHADA-BACA was found in the United States on or about November 13, 2018, after having been previously removed therefrom on or about March 10, 2017.
RICARDO MACHADA-BACA was sentenced to 14 months incarceration, and three years of supervised release.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Heroin/Fentanyl Pipeline to Wilmington DisruptedRead the Press Release
WILMINGTON – United States Attorney Robert J. Higdon, Jr. announced the conclusion of OCDETF Operation “Tooth Fairy”. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combatting drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The defendants’ convictions and sentencings were the culmination of a multi-year and multi-agency investigation into a heroin/fentanyl trafficking ring operating primarily around Wilmington, North Carolina and the surrounding counties.
On September 19, 2016, in a joint investigation between the Federal Bureau of Investigation’s (FBI) Safe Streets Task Force (Gang Unit) and the New Hanover County Sheriff’s Office Vice Division, law enforcement arranged an undercover purchase of heroin from DEANDRE SWEET. When DEANDRE SWEET arrived in a parking lot in Wilmington to complete the sale, law enforcement stopped his rental car and found 500 bags of heroin. DEANDRE SWEET was then arrested.
In the same joint investigation, between June and October 2017, law enforcement conducted several undercover purchases of heroin from KYERIC SWEET and DIQUELLE SWEET. The investigation revealed that ANDREW LIGE was a source of supply for the Sweets. On October 12, 2017, law enforcement arrested KYERIC SWEET in possession of a quantity of heroin and more than $2,500. On October 10, 2017, DIQUELLE SWEET was a passenger in a vehicle that attempted to flee from the Elizabethtown Police following a traffic checking station. Officers stopped the vehicle and found SWEET seated on a loaded Taurus 9mm handgun with a bullet in the chamber. The driver was prosecuted by the Bladen County District Attorney’s Office for an additional firearm.
On July 26, 2016, TEREK HARPER was stopped in Sampson County for a traffic violation and found to be in possession of a large quantity of heroin. HARPER was travelling to Wilmington to distribute the heroin. HARPER is currently awaiting sentencing in North Carolina State Court on this charge.
On July 26, 2016, Duplin County Sheriff’s Deputies and the North Carolina Highway Patrol attempted to stop a car driven ANDREW JEROME LIGE. LIGE led law enforcement on a lengthy chase through Duplin County – reaching speeds in excess of 115 miles per hour. During the chase, KEVIN SIMPKINS, the passenger in the car, threw out a bag containing more than 9,800 bags of heroin (more than 130 grams). A trooper was finally able to immobilize the car. During the investigation, it was determined that LIGE had been making trips to New Jersey to acquire heroin for distribution in Eastern North Carolina.
On November 26, 2017, LIGE was the victim of a home invasion robbery. LIGE was shot and found in close proximity to a handgun. At the time of the robbery, LIGE, a convicted felon, was prohibited from possessing handgun.
On November 30, 2017, New Hanover County Sheriff’s Detectives searched SHAWQI GRAY’s residence and a trailer on the property. Law enforcement found the following items: more than 130 grams of a heroin/fentanyl mixture, more than 150 grams of a mixture of heroin and ketamine, 90 grams of heroin, 5 loaded handguns (2 of which were stolen) and more than $47,000 in cash. The investigation uncovered that GRAY had been involved in the distribution of more than a kilogram and half of heroin and fentanyl from 2017 until the time of his arrest. At the time of his arrest in November 2017, GRAY was a fugitive from Pennsylvania. On August 4, 2016, the Easton Police Department in Pennsylvania had searched GRAY’s Pennsylvania residence. GRAY was not present for the search, during which law enforcement found 20 grams of heroin, 68 grams of crack cocaine, and more than $19,000 in cash.
On February 26, 2018, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Wilmington Police Department received information that LIGE was transporting a load of heroin to the Wilmington area. As a result, law enforcement stopped LIGE’s BMW in which TONY SIMS was driving and LIGE was a passenger. In the car, law enforcement found 5,000 bags of heroin (approximately 100 grams).
On April 5, 2018, the United States Marshals Service Fugitive Task Force and the Wilmington Police Department arrested TEREK HARPER at a motel in Wilmington. HARPER was found in possession of more than 3,400 bags of heroin (approximately 68 grams of heroin) and more than 9,000 in cash.
The defendants include:
- SHAWQI GRAY, 37, of Wilmington, NC. GRAY was sentenced to 204 months’ imprisonment in February 2019. GRAY pled guilty to conspiracy to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin and a quantity of fentanyl, possession with intent to distribute one hundred (100) grams and possession of a firearm in furtherance of a drug trafficking offense.
- ANDREW JEROME LIGE, also known as “Shotgun,” 40, of Wilmington, NC. LIGE was sentenced to 132 months’ imprisonment on January 9, 2019. LIGE pled guilty to conspiracy to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin and possess with the intent to distribute one hundred (100) grams or more of heroin.
- KEVIN SIMPKINS, 50, of Wilmington, NC. SIMPKINS was sentenced to 132 months’ imprisonment. SIMPKINS pled guilty to conspiracy to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin and possess with the intent to distribute one hundred (100) grams or more of heroin.
- DEANDRE SWEET, 27, of Wilmington, NC. SWEET was sentenced to 105 months’ imprisonment in October 2018. SWEET pled guilty to conspiracy to distribute and possess with intent to distribute a quantity of heroin and possess with intent to distribute a quantity of heroin.
- DIQUELLE SWEET, 22, of Wilmington NC, SWEET was sentenced to 105 months imprisonment in September 2018. SWEET pled guilty to 5 counts of distribution of a quantity of heroin and possession of a firearm by a convicted felon.
- KYERIC SWEET, 25, of Wilmington, NC. SWEET was sentenced to 90 months’ imprisonment on October 2018. SWEET pled guilty to possession with intent to distribute a quantity of heroin.
- TEREK HARPER, also known as “Reek,” 34, of New Jersey. HARPER pled guilty to conspiring to distribute and possess with the intent to distribute a 100 grams or more of heroin and possession with intent to distribute 100 grams or more of heroin. HARPER was sentenced to 87 months’ imprisonment on April 1, 2019. HARPER is awaiting sentencing in North Carolina State Court and faces a mandatory minimum active sentence to be served following the expiration of his federal sentence.
- TONY SIMS, 52, of Wilmington, NC. SIMS was sentenced to 48 months’ imprisonment on January 25, 2019. SIMS pled guilty to conspiracy to distribute and possess with the intent to distribute a quantity of heroin and possession with the intent to distribute a quantity of heroin
The investigation of this case was conducted by the Federal Bureau of Investigation’s Safe Streets and Coastal Carolina Criminal Enterprise Task Forces; Bureau of Alcohol, Tobacco, Firearms and Explosives; United States Marshals Service Fugitive Task Force; Wilmington Police Department (Gang Unit); Elizabethtown Police Department; Duplin County Sheriff’s Office; New Hanover County Sheriff’s Office; Sampson County Sheriff’s Office; and, North Carolina Highway Patrol. Assistant United States Attorney Timothy Severo prosecuted these cases on behalf of the government.
Hartford Man Who Pointed Gun at Undercover Officers Sentenced to 30 Months in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ENRIQUE LUCIANO, 32, of Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm and ammunition.
According to court documents and statements made in court, on June 4, 2018, Luciano approached a car on Cabot Street in Hartford and pointed a gun at the car. The car was occupied by two undercover Hartford Police detectives investigating drug activity on Cabot Street. After the detectives identified themselves as police officers, Luciano fled and discarded the gun. Luciano was apprehended and the firearm, a loaded 9mm Taurus PT 908 handgun with an obliterated serial number, was recovered.
Luciano has a previous federal conviction for possession of a firearm by a convicted felon and, in May 2010, was sentenced to 60 months of imprisonment for that offense. He also has prior convictions in state court for drug offenses.
Luciano has been detained since his arrest. On December 3, 2018, he pleaded guilty to one count of possession of a firearm and ammunition by a convicted felon.
This investigation was conducted by the Hartford Police Department and the FBI’s Connecticut Violent Crime Task Force. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
This prosecution 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 neighborhoods safer for everyone.
Harrison County man sentenced for role in heroin distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – David C. Chalfant, of Bridgeport, West Virginia, was sentenced today to 10 months incarceration for his role in a heroin distribution operation, United States Attorney Bill Powell announced.
Chalfant, age 26, pled guilty to one count of “Aiding and Abetting the Distribution of Heroin” in May 2018. Chalfant admitted to selling heroin in March 2016 in Harrison County.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.Hampden Woman Sentenced to Five Years of Probation for Conspiracy to Commit Marriage FraudRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Marena Mushero, 28, recently of Hampden, Maine, was sentenced yesterday in U.S. District Court by Judge Lance E. Walker to five years of probation for conspiring to enter a marriage in order to evade U.S. immigration laws.
According to court records, Mushero, a United States citizen, posted an advertisement on an on-line forum, in which she offered to marry a person in need of permanent resident status in exchange for money. On June 13, 2018, she received a response from a Nepalese citizen who was lawfully in the U.S. and living in another state. Mushero agreed to marry him in exchange for cash payments so that he could get a “green card.” On June 25, 2018, Mushero and her coconspirator were married in Brewer, Maine. Before and after the wedding, Mushero received hundreds of dollars via wire transfers from her coconspirator, who continued to live and work in another state.
In imposing the sentence, Judge Walker noted that Mushero is due to complete an eight-month state prison term next week for an unrelated offense.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Citizenship and Immigration Services, and the Brewer Police Department.
Gretna Preacher Sentenced to Serve 19 Months in Federal Prison for Stealing over $320,000 from ChurchRead the Press Release
NEW ORLEANS, LOUISIANA – JOSEPH R. ALEXANDER, age 60, a resident of Gretna, Louisiana, was sentenced yesterday to 19 months in federal prison for bank fraud. He was indicted in December 2017 and pled guilty in December 2018.
According to papers filed with the court and signed by ALEXANDER, ALEXANDER was the minister at a Church of Christ congregation in Gretna, Louisiana. Starting in 2006 and continuing until December 2013, ALEXANDER stole $321,491 from the church in three different schemes. The first involved his writing church checks to himself, but creating false entries in church ledgers which indicated the checks were being written to legitimate church vendors, when in reality ALEXANDER was paying his bills and funding family vacations to Alaska and Las Vegas, among other places. He also bought gifts for parishioners, shopping at the Apple Store and Victoria’s Secret. He also paid his son’s college tuition with church funds. The second method involved his opening of an online bank account without church permission and paying personal expenses from the online account. Finally, he forged a church elder’s signature on checks which required two signatures. He used these funds for personal expenses.
JOSEPH R. ALEXANDER faced a maximum term of imprisonment of thirty (30) years, a fine of $250,000.00 and five (5) years of supervised release following any term of imprisonment. He was ordered to report to federal prison on July 3, 2019 to begin serving his sentence. He was also ordered to pay $321,491 restitution.
The case was investigated by the United States Postal Inspection Service.
The case was being prosecuted by Assistant U. S. Attorney Carter K. D. Guice, Jr. of the General Crimes Unit.
Greece Man Charged with Lying to the FBIRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Thomas Alonzo Bolin, a/k/a Peter Vincent, 22, of Greece, NY, was charged by criminal complaint with making a false statement to the FBI. The charge carries a maximum penalty of five years in prison.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that according to the complaint, in March 2019, the FBI began investigating the defendant for potential federal civil rights and firearms violations.
The FBI obtained records relating to a Facebook account utilized by Bolin under the alias “Peter Vincent.” Those records revealed that the defendant belongs to multiple Facebook groups, such as Skinheads CZ/SK, which includes members who currently and historically have expressed support for a white supremacist ideology. In March of 2019, Bolin, in posts and messages, made statements consistent with white supremacist ideology and referenced the attacks on two mosques in Christchurch, New Zealand, which killed 50 worshippers and civilians, and injured 50 others.
On March 30, 2019, the FBI interviewed the defendant. The complaint states that Bolin admitted to sharing the video of the Christchurch attacks and the link for the gunman's manifesto but denied ever possessing a gun while in New York State. During a subsequent search of a bedroom and storage closet that Bolin is renting at a residence in Greece, investigators recovered a firearm and ammunition.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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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Grape Street Crips Member Convicted of Murder of Bystander and Related Drug-Trafficking ChargesRead the Press Release
NEWARK, N.J. – A member of the Grape Street Crips gang was found guilty today by a federal jury of racketeering conspiracy, murder in aid of racketeering, conspiracy to distribute heroin, and other drug crimes, U.S. Attorney Craig Carpenito announced today.
Khalil Stafford, a/k/a “Stod,” a/k/a “Homicide,” 34, of Newark, was convicted following a three-week trial before U.S. District Judge Madeline Cox Arleo in Newark federal court. The jury deliberated for four hours before returning the verdicts.
Stafford was charged – along with 13 other defendants –with RICO conspiracy, murder in aid racketeering, conspiracy to distribute one kilogram or more of heroin, and possession with intent to distribute one kilogram of more of heroin. All 14 defendants have now been convicted.
Another 66 members and associates of the Grape Street Crips who were arrested in a coordinated takedown in May 2015 were separately charged with drug-trafficking, physical assaults, and witness intimidation, and all have been convicted.
According to documents filed in this case and the evidence at trial:
On June 19, 2010, during a family cookout on Garside Street in Newark, Stafford – a long-time member of the Grape Street Crips – confronted an individual about a drug debt. Stafford and several other gang-members left the cookout to retrieve firearms and later returned. They fired more than a dozen shots at the person whom Stafford originally confronted. A woman who was not part of the dispute was standing on a nearby porch, and was shot and killed. Two other people were wounded and survived.
Stafford was also involved in the distribution of heroin from 2003 through 2015. Stafford sold heroin and cocaine at the James Baxter Terrace housing complex from 2003 until it was demolished in 2009. After Baxter Terrace was torn down, Stafford continued to distribute heroin and cocaine at the Wynona Lipman public-housing complex. In 2014, Stafford and a conspirator sold to DEA confidential informants nearly $20,000 worth of heroin in separate transactions.
Stafford faces a mandatory life sentence in connection with the murder in aid of racketeering. For the conspiracy to distribute heroin, Stafford faces a mandatory minimum term of 10 years in prison and a maximum sentence of life in prison. For the RICO conspiracy, Stafford faces a maximum term of life in prison. Sentencing is scheduled for June 12, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, and special agents of the U.S. Attorney’s Office with the investigation leading to today’s conviction. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sherriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto, Chief of the Organized Crime and Gangs Unit, Assistant U.S. Attorney Barry A. Kamar of the Criminal Division in Newark, and Assistant U.S. Attorney Richard J. Ramsay of the Appeals Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Franklinton Man Sentenced for Distribution of Child PornographyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that on April 3, 2019, in federal court, United States District Judge James C. Dever III sentenced aNDREW DAVID PHILLIPS, 28, of Franklinton, North Carolina to 210 months imprisonment, followed by 10 years of supervised release.
PHILLIPS was named in a Criminal Information filed on February 13, 2018 charging him with Distribution of Child Pornography. On March 20, 2018, PHILLIPS pled guilty to that charge.
Based on the investigation, PHILLIPS used a computer to store at least 2,210 images of child pornography. In addition, PHILLIPS traded many of the images and videos with other individuals, in exchange for pornographic images of children.
Investigation of this case was conducted by the Raleigh Police Department, as well as the Federal Bureau of Investigation (FBI). Assistant United States Attorney Donald R. Pender represented the government.
Former Reality Television Series “Bad Girl” Sentenced to 1 Year in PrisonRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that SHANNADE CLERMONT was sentenced to one year in prison for making and attempting more than $20,000 in fraudulent charges using debit card information she stole from a man who died during the course of a prostitution date with her. CLERMONT pled guilty to one count of wire fraud in November 2018 before U.S. District Judge Naomi Reice Buchwald, who also presided over today’s sentencing.
U.S. Attorney Geoffrey S. Berman said: “Former reality TV ‘Bad Girl’ Shannade Clermont lived up to her on-screen persona, as she admitted to stealing the debit card information from a man she visited for a prostitution date in his Manhattan apartment. When the man died of an overdose, instead of notifying the authorities or calling for help, Clermont callously chose to use the man’s debit card information to make tens of thousands of dollars in illegal purchases. As Shannade Clermont has now learned, her real-life bad behavior has real-life consequences, and has now landed her in federal prison.”
According to the allegations contained in the Complaint and Indictment to which CLERMONT pled guilty and other filings in the case:
The New York City Police Department (“NYPD”) and the United States Attorney’s Office for the Southern District of New York had been investigating the overdose death of a male individual (the “Victim”), who was found dead on the morning of February 1, 2017, in his apartment at 250 East 53rd Street in Manhattan, New York (the “Victim Apartment”). During the course of that investigation, law enforcement learned that CLERMONT visited the Victim for a prostitution date at the Victim Apartment the previous evening (January 31, 2017), and stole the information for two debit cards in his wallet. CLERMONT admitted that she stole the debit card information after the Victim passed out during the prostitution date. CLERMONT then used the stolen debit card information to make or attempt to make more than $20,000 in fraudulent purchases during the months following the Victim’s death, including to pay her rent and phone bills, to purchase flights, and to make several online purchases of thousands of dollars of luxury clothing and other merchandise, including, among other items, Valentino shoes, a Phillip Plein jacket, Beats headphones, as well as a gift certificate at a beauty salon.
CLERMONT also created and used a fake email account in the Victim’s name to falsely represent to third parties that she was the Victim, in order to commit fraud using the Victim’s identity. Specifically, on April 3, 2017, approximately two months after the Victim’s death, the fake email account was used to register an account with Western Union in the name of the Victim, which was used to initiate a fraudulent money transfer of $1,000 from the Victim to CLERMONT.
In an interview by law enforcement after she was arrested, Clermont stated, in substance and in part, that she committed this crime at least in part due to the stress of keeping up her public image.
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In addition to the prison sentence, CLERMONT, 25, of Los Angeles, California, was sentenced to three years of supervised release and ordered to forfeit $5,775.27 and pay $4,696.40 in restitution.
Mr. Berman praised the outstanding investigative work of the NYPD.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
Former Chesapeake Sheriff’s Deputy Pleads Guilty to CorruptionRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today to corruption charges related to his smuggling of drugs and other contraband into the Chesapeake City Jail.
According to court documents, Jenis Leroy Plummer, Jr., 34, used his official position as Chesapeake Sheriff’s Deputy to smuggle heroin, cocaine, cell phones, e-cigarettes and other contraband into the Chesapeake City Jail. In exchange, conspirators gave Plummer over $6,500 in cash. From July 2017 through January 2019, Plummer knowingly and intentionally conspired with an inmate in the Chesapeake City Jail to engage in this scheme. On numerous occasions throughout the conspiracy, Plummer contacted the inmate’s girlfriend and arranged to meet her at various locations in Hampton Roads to pick up the contraband. At these meetings, the inmate’s girlfriend gave Plummer the illicit contraband in blue latex gloves. Plummer then smuggled the contraband into the jail and delivered the items to the inmate.
In exchange for using his official position, numerous individuals connected to the inmate paid Plummer with cash, via CashApp, and via PayPal. On one occasion, law enforcement observed the inmate’s girlfriend drop a black sock containing contraband at an arranged meeting location in a cul-de-sac on Horse Run Drive in Chesapeake. Law enforcement recovered the black sock and replaced the suspected bags of narcotics with two bags of fake narcotics and returned the black sock to its original location. Thereafter, law enforcement observed Plummer travel to the cul-de-sac and retrieve the black sock containing contraband that included the fake narcotics. After being approached by law enforcement, Plummer, and his conspirators, separately admitted their involvement in the conspiracy.
Plummer pleaded guilty to and faces a maximum penalty of 20 years in prison when sentenced on June 17. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorneys Melissa E. O’Boyle and Joseph E. Depadilla are prosecuting the case.
The Chesapeake Sheriff’s Office has provided significant assistance and full cooperation during the investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-25.
Former CEO of Tennessee Pain Management Company Convicted for Role in Approximate $4 Million Medicare Kickback SchemeRead the Press Release
A federal jury sitting in Nashville, Tennessee found the former CEO of a Tennessee pain management company guilty today for his role in an illegal kickback scheme involving approximately $4 million in tainted durable medical equipment (DME) claims to Medicare.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Don Cochran of the Middle District of Tennessee, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta region, Special Agent in Charge John F. Khin of the Department of Defense, Defense Criminal Investigative Service's (DCIS) Southeast Field Office, Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (CI) Charlotte Field Office – Nashville Division and Director David Rausch of the Tennessee Bureau of Investigation made the announcement.
After a seven-day trial, John Davis, 41, of Franklin, Tennessee, the former CEO of Comprehensive Pain Specialists (CPS) of Gallatin, Tennessee, was convicted of all counts including, one count of conspiracy to defraud the United States and violate the Anti-Kickback Statute, and seven counts of violating the Anti-Kickback Statute. Sentencing has been scheduled for later this year before U.S. District Judge William L. Campbell Jr. of the Middle District of Tennessee, who presided over the trial.
According to evidence presented at trial, Davis abused his position as CEO of CPS to arrange for referrals of Medicare DME orders to his co-conspirator Brenda Montgomery and her company, CCC Medical, located in Camden, Tennessee. Evidence showed that Davis operated a shell company called ProMed Solutions (ProMed), which he had registered in the name of his wife. Despite having no involvement with ProMed and performing no work, Davis’ wife and ProMed received over $770,000 in illegal kickbacks. Together, Davis and Montgomery pocketed over $2.4 million dollars in improper reimbursement from Medicare. Davis used company funds from CPS to pay bonuses to CPS providers who ordered DME for Medicare beneficiaries and referred those orders to CCC Medical. Davis would receive 60 percent of the Medicare profit from those referrals, while the company he ran footed the bill.
Evidence at trial also showed that in April and May of 2015, concerned about the size of the kickback payments CCC Medical was making to Davis, he and Montgomery concocted the sham sale of ProMed. ProMed had no assets, no employees, no equipment, no office space and no customers other than CPS. Evidence further showed that Davis and Montgomery set the price for the sham sale based upon the average monthly kickbacks that Davis had been paid for the previous eight months. When CPS referrals slowed, Davis agreed to reduce the purported “purchase price” from $200,000 to $150,000. Once Davis had received the last check for the sham sale, he went about cutting off referrals to CCC Medical.
Brenda Montgomery pleaded guilty in January to one count of conspiracy to defraud the United States and violate the Anti-Kickback Statute, and seven counts of violations of the Anti-Kickback Statute. She is currently scheduled to be sentenced on May 3, 2019.
This case was investigated by HHS-OIG, DCIS, Internal Revenue Service-Criminal Investigation and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit 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 Middle District of Tennessee. The case was prosecuted by Trial Attorney Anthony Burba of the Fraud Section and Assistant U.S. Attorney Henry Leventis of the Middle District of Tennessee.
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.
Former CEO of Tennessee Pain Management Company Convicted for Role in Approximate $4 Million Medicare Kickback SchemeRead the Press Release
NASHVILLE, Tenn. April 4, 2019 – A federal jury sitting in Nashville, Tennessee, found the former CEO of a Tennessee pain management company guilty today for his role in an illegal kickback scheme involving approximately $4 million in tainted durable medical equipment (DME) claims to Medicare, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Joining in making the announcement were Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Atlanta region, Special Agent in Charge John F. Khin of the U.S. Department of Defense Criminal Investigative Service’s (DCIS) Southeast Field Office, Special Agent in Charge Matthew Line of the IRS-Criminal Investigation, Charlotte Division-Nashville Field Office, and Director David Rausch of the Tennessee Bureau of Investigation.
After a seven-day trial, John Davis, 41, of Franklin, Tennessee, the former CEO of Comprehensive Pain Specialists (“CPS”) of Gallatin, Tennessee, was convicted of all counts including, one count of conspiracy to defraud the United States and violate the Anti-Kickback Statute, and seven counts of violating the Anti-Kickback Statute. Sentencing will be scheduled for later this year before U.S. District Judge William L. Campbell Jr., who presided over the trial.
According to evidence presented at trial, Davis abused his position as CEO of CPS to arrange for referrals of Medicare DME orders to his co-conspirator Brenda Montgomery and her company, CCC Medical, located in Camden, Tennessee. Evidence showed that Davis operated a shell company called ProMed Solutions (“ProMed”), which he had registered in the name of his wife. Despite having no involvement with ProMed and performing no work, Davis’ wife and ProMed received over $770,000 in illegal kickbacks. Together, Mr. Davis and Montgomery pocketed over $2.4 million dollars in improper reimbursement from Medicare. Davis used company funds from CPS to pay bonuses to CPS providers who ordered DME for Medicare beneficiaries and referred those orders to CCC Medical. Davis would receive 60% of the Medicare profit from those referrals, while the company he ran footed the bill.
Evidence at trial also showed that in April and May of 2015, concerned about the size of the kickback payments CCC Medical was making to Davis, he and Montgomery concocted the sham sale of ProMed. ProMed had no assets, no employees, no equipment, no office space, and no customers other than CPS. Evidence further showed that Davis and Montgomery set the price for the sham sale based upon the average monthly kickbacks that Davis had been paid for the previous 8 months. When CPS referrals slowed, Davis agreed to reduce the purported “purchase price” from $200,000 to $150,000. Once Davis had received the last check for the sham sale, he went about cutting off referrals to CCC Medical.
Brenda Montgomery pleaded guilty in January 2019 to one count of conspiracy to defraud the United States and violate the Anti-Kickback Statute, and seven counts of violating the Anti-Kickback Statute. She is currently scheduled to be sentenced on May 3, 2019.
This case was investigated by HHS-OIG; Defense Criminal Investigative Service; the Internal Revenue Service-Criminal Investigation; and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, under the supervision of the U.S. Attorney’s Office for the Middle District of Tennessee and the Criminal Division’s Fraud Section. The case was prosecuted by Assistant U.S. Attorney Henry Leventis of the Middle District of Tennessee and Trial Attorney Anthony Burba of the Fraud Section.
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Former Administrator of Two Houston Home Health Companies Sentenced to Prison in $20 Million Medicare Fraud SchemeRead the Press Release
The former Director of Nursing and Administration of two Houston, Texas-based businesses was sentenced today to 10 years in prison for her role in a $20 million Medicare fraud scheme involving false and fraudulent claims for home health services.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Region made the announcement.
Evelyn Mokwuah, 54, of Pearland, Texas, former Director of Nursing and Administration of Beechwood Home Health (Beechwood) and Criseven Health Management Corporation (Criseven), both located in Houston, was sentenced by U.S. District Judge Gray H. Miller of the Southern District of Texas. Judge Miller also ordered Mokwuah to pay $20,462,607.21 in restitution to Medicare. On Aug. 10, 2017, following a four-day trial, a jury found Mokwuah guilty of one count of conspiracy to commit health care fraud and four counts of health care fraud.
According to evidence presented at trial, from 2008 to 2016, Mokwuah and others engaged in a scheme to defraud Medicare of approximately $20 million including the submission of fraudulent claims for home health services at Beechwood and Criseven that were not provided, not medically necessary or both. According to the trial evidence, Mokwuah falsely certified and billed for patients who were not homebound or did not qualify for home health services. Along with others, Mokwuah also falsified patient records to show that patients were homebound when they were not; paid patient recruiters to recruit Medicare beneficiaries to Beechwood and Criseven; and paid doctors to certify false plans of care for Medicare beneficiaries so that Beechwood and Criseven could bill Medicare for those services.
The case was investigated by the FBI and 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 Texas. The case is being prosecuted by Trial Attorneys Scott Armstrong and Kevin Lowell of 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.
Five Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging ALEJANDRO AVILEZ-PEREZ, age 41, of Mexico, COURTNEY ANTHONY BECKFORD, age 36, of Jamaica, JHONAS CAMERO-SALINAS, age 26, of Mexico, JORGE AMILCAR RAMOS-LOPEZ, age 46, of Guatemala, and JUAN ANTONIO TORRES-NAVA, age 26, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of illegal reentry of a deported alien, RAMOS-LOPEZ, previously deported two times and found in Greene County (where he was convicted of assault), and CAMERO-SALINAS, previously deported and found in Wake County (where he was convicted of a domestic-violence related crime), would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
BECKFORD, previously deported and found in Cumberland County, is alleged to have been previously deported subsequent to a felony conviction (cocaine and LSD possession). Therefore, if convicted, would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal reentry subsequent to an aggravated felony, AVILEZ-PEREZ, previously deported twice after a federal conviction for possession with intent to distribute cocaine and found in Wake County, and TORRES-NAVA, previously deported twice after a conviction for delivery of cocaine in Wake County and recently found in Johnston County, would face maximum penalties of 20 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Final Defendant Sentenced in Stockton Tax Refund Fraud RingRead the Press Release
SACRAMENTO, Calif. — Jeffrey S. Grady, 35, of Stockton, was sentenced today by U.S. District Judge Troy L. Nunley to two and a half years in prison and ordered to pay more than $25,000 in restitution for conspiracy to submit false claims to the IRS and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
“The harm caused by Mr. Grady and his co-defendants goes beyond simply cheating the government,” said Kareem Carter, IRS Criminal Investigation Special Agent in Charge. “Stealing identities and filing false tax returns is a serious crime that has a devastating impact on the victims. Identity theft is a pervasive crime and stopping it remains a top priority for us.”
According to court documents, Grady and his co-conspirators submitted tax returns to the IRS that falsely claimed that the persons named on the returns were entitled to tax refunds. Grady obtained the names, social security numbers, and other personal identifying information of various individuals and used that information, often without the knowledge of those people, to submit the tax returns in their names. Altogether, Grady took part in submitting at least 150 false tax returns, requesting approximately $94,140 in tax refunds. The IRS paid more than $25,000 in tax refunds based on those fraudulent tax returns. Grady was one of four defendants charged in the same conspiracy and the last to be sentenced.
Christopher Grady, of Stockton, was sentenced on July 13, 2017, to approximately 38 months of time served in custody and ordered to pay more than $250,000 in restitution.
Jacob Cook, of Stockton, was sentenced on September 7, 2017, to serve 30 months in prison and ordered to pay more than $69,000 in restitution.
Tosh Babu, of Stockton, was sentenced on September 21, 2017, to serve 30 months in prison and ordered to pay more than $94,000 in restitution.
This case was the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.
District Man Sentenced to 10 Years in Prison for Role in Drug Trafficking OrganizationRead the Press Release
WASHINGTON – Kelby Gordon, 32, of Washington, D.C., was sentenced today to 10 years in prison for distributing narcotics in Washington, D.C. – a prison term that he must serve in addition to the 37-year prison term he recently was given in a murder case.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Gordon was found guilty by a jury on Jan. 10, 2019 of unlawful distribution of fentanyl. The verdict followed a trial in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Trevor N. McFadden. The sentence is to run consecutively to the 37-year prison term that Gordon is serving for a murder in Southeast Washington. In sentencing Gordon, Judge McFadden highlighted the danger of fentanyl abuse to the community; a report by the District of Columbia Office of the Chief Medical Examiner cited fentanyl and its analogs as a key factor in a drastic increase in recent years of overdose deaths in the city.
The narcotics charge arose from a long-term investigation initiated by the Washington D.C. FBI/MPD Safe Streets Task Force into the violence and associated narcotics trafficking in the area of Birney Place SE. Gordon and numerous other defendants were indicted in December 2017 for their roles in the operation. A total of 12 people faced charges in the investigation; 10 pled guilty and two, including Gordon, were found guilty of charges at trial.
The investigation determined that from at least January 2016 through December 2017, the various defendants maintained a drug trafficking organization that supplied distribution amounts of crack cocaine, methamphetamine, and heroin to drug dealers in the District of Columbia, Maryland and Virginia. Much of the activity took place in the Birney Place area of Southeast Washington. In particular, the investigation showed that several of the defendants regularly sold crack cocaine and heroin in the 2600 block of Birney Place SE.
According to the government’s evidence, an undercover law enforcement officer met with Gordon during the investigation to purchase heroin. The evidence showed that the substance he actually sold the officer that day was a fentanyl analog.
Gordon was sentenced on Dec. 14, 2018, to 37 years in prison for killing an innocent bystander and firing into an occupied bedroom during a broad-daylight shooting in Southeast Washington. According to the government’s evidence, on March 24, 2016, at approximately 11:15 a.m., the victim, Gabriel Turner, was walking in a cut-through behind the 2600 block of Birney Place SE, headed to a nearby bus stop. Mr. Turner, 46, who had intellectual disabilities and who was working at the FBI as a janitor, had just finished having breakfast with his mother – as he had every morning. Gordon, meanwhile, was in the area and, after seeing another man pull out a large amount of money, decided to rob that man near the mouth of the cut-through.
However, as Gordon attempted to rob the man, the man began to pull out his own firearm. Gordon, in his own words, gave the man no chance, and pulled his gun out first. The two men began running down the cut-through behind Mr. Turner.
Unbeknownst to Mr. Turner, Gordon planted his feet and began firing towards the man, who fled in the same direction that Mr. Turner was walking. The man who Gordon was targeting weaved around Mr. Turner and escaped, but a single bullet struck Mr. Turner in the upper back as he ducked. The bullet lodged itself in Mr. Turner’s sinus – killing him almost instantly. Two other bullets flew into an occupied apartment across the street, just missing the head of a second victim as he returned to bed.
In announcing today’s sentence, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended those who investigated the case from the Safe Streets Task Force, including the FBI, MPD, and the U.S. Drug Enforcement Administration (DEA). They also acknowledged the work of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Kevin L. Rosenberg; Supervisory Paralegal Specialist Mary Downing; Paralegal Specialist Candace Battle, and Legal Assistant Peter Gaboton. They additionally expressed appreciation for the efforts of Assistant U.S. Attorneys Lindsey Merikas and Monica Trigoso, who investigated and prosecuted the murder case.
Finally they expressed appreciation for the work of Assistant U.S. Attorney Nihar R. Mohanty, who investigated and prosecuted the narcotics case.
Company Charged with Harboring Illegal AliensRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that AA STUCCO AND MASONRY, LLC., a company that does business within the Eastern District of Louisiana, was charged yesterday in a one-count bill of information with harboring two illegal aliens, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(iii).
If convicted of the felony, the company faces up to 5 years of probation, a fine of $500,000, and a $400 special assessment fee.
U.S. Attorney Strasser reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of Homeland Security Investigations and the Louisiana State Police in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Civil Lawsuit Filed to Enjoin Local Farm’s Continuing Misbranding of Meat/Poultry Products and Evasion of Food Safety LawsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that his office has filed a civil lawsuit to enjoin Miller’s Organic Farm of Bird-in-Hand, Pennsylvania, and its owner, Amos Miller, from continuing to violate federal food safety laws. The violations include Miller’s selling non-federally-inspected, misbranded meat and poultry products to consumers located throughout the United States.
The United States brings the action on behalf of the Food Safety and Inspection Service (FSIS) of the U.S. Department of Agriculture. FSIS is responsible for ensuring that commercially sold meat, poultry, and egg products are safe, wholesome, and correctly labeled and packaged. A principal way that FSIS fulfills its mission is by inspecting meat and poultry products before they reach consumers.
The suit is part of the United States’ continuing efforts to bring Miller’s into compliance with federal food safety laws. In late 2015, for example, the Food and Drug Administration, which regulates milk: (1) isolated and identified Listeria monocytogenes (L. mono) bacteria in samples of Miller’s raw milk; (2) through whole genome sequencing, found the bacteria to be genetically similar to L. mono in two individuals who had developed listeriosis (with one dying) after consuming raw milk; and (3) named Miller’s as the “likely source” of those infections.
In follow-up, FSIS sought to assess whether L. mono might be contaminating Miller’s meat and poultry products. But Mr. Miller refused to grant FSIS entry to the farm’s meat-and-poultry-related facilities, even after the agency served him with a subpoena. He erroneously contended that, as a self-organized private membership association, Miller’s is beyond the reach of federal food safety regulation.
The United States then sued Miller’s in the Eastern District of Pennsylvania, to enforce the subpoena and USDA’s access rights under the Federal Meat Inspection Act (FMIA) and the Poultry Products Inspection Act (PPIA). See United States v. Miller’s Organic Farm and Amos Miller, EDPA No. 16-cv-2731. After the court enforced the subpoena, FSIS cited Miller’s with FMIA and PPIA misbranding and other violations, which have since continued. This is believed to be the first-ever suit of its kind where FSIS is seeking an injunction against a so-called “private membership association” farm business to enforce food safety laws.
“With today’s lawsuit, food establishments in this District are on further notice that my Office will not ignore efforts to evade federal food safety laws and to hinder agencies like FSIS from carrying out their public safety missions,” said U.S. Attorney McSwain. “We will not allow commercial sellers to ignore the rule of law, make up their own sets of rules, and attempt to hide behind a private-membership-association structure in an effort to thwart federal laws. Congress enacted food safety laws to ensure that the nation’s food supply is safe, wholesome, and properly labeled and packaged. It’s our job to enforce those democratically enacted laws, which we will do in this case.”
“FSIS investigators work hard every day to protect consumers,” said Carmen Rottenberg, FSIS Administrator. “We take our job to protect public health very seriously, with swift action to ensure that American families have safe food to eat. Flagrant failure to meet the regulations will not be tolerated.”
Assistant United States Attorney Gerald Sullivan is litigating this case on behalf of the United States.
Chicago Man Sentenced for Marathon County Heroin ConspiracyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Michael A. Terrell Jr., 33, Chicago, Illinois, was sentenced on April 2 by U.S. District Judge William M. Conley to 6 ½ years in federal prison for conspiring to distribute heroin. Terrell pleaded guilty to this charge on January 15, 2019.
At sentencing, Judge Conley found that from April 2015 to July 2016, Terrell participated in a heroin trafficking conspiracy in the Wausau, Wisconsin area. Terrell and his co-conspirators used a cellular telephone facilitating and distributing heroin to calling customers. Specifically, the customers called a cellular telephone number given out by Terrell and his co-conspirators, ordered heroin from the person on the other end of the phone, and then conspiracy members delivered the heroin on behalf of the organization. Terrell and his co-conspirators were responsible for distributing at least 700 grams but less than 1 kilogram of heroin during the conspiracy.
In sentencing Terrell to 6 ½ years, Judge Conley stressed the large amount of heroin distributed by Terrell and his co-conspirators and the negative impact the heroin distribution had on the community.
Co-conspirators Alfred Wilson, Kyle Anderson, and Daryl Harris Jr. were sentenced to 7, 2 ½, and 11 years respectively.
The charge against Terrell was the result of an investigation conducted by the Marathon County Special Investigations Unit, Wausau Police Department, Marathon County Sheriff’s Office, and Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney David J. Reinhard.
Cedar Rapids Heroin Dealer Sentenced to More than Two Years’ ImprisonmentRead the Press Release
A man who distributed heroin and fentanyl was sentenced April 3, 2019, to more than two years in federal prison.
Julius Sullivan, age 26, from Chicago, Illinois, received the prison term after an October 25, 2018, guilty plea to distribution of heroin within a protected location. On July 31, 2018, Sullivan distributed heroin in Cedar Rapids, near a playground located at the Time Check Park.
Sullivan was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Sullivan was sentenced to 30 months’ imprisonment. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
Sullivan is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by Drug Enforcement Administration and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-0080.
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Buffalo Man Sentenced to Prison for Receiving Child PornographyRead 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 Joshua Zak, 41, of Buffalo, NY, who was convicted of receipt of child pornography, was sentenced to 72 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that in September 2015, Federal Agents searched Zak’s residence after determining he had accessed a site on the dark web dedicated to the exploitation of children. Agents seized various electronics, and a forensic examination revealed that the defendant was in possession of over 100,000 images and videos of child pornography. Zak was released on bail, and in March 2017, was again found in possession of over 500 images of child pornography.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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Buffalo Man Pleads Guilty to Illegal Gun Possession ChargeRead 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 Errick Roseboro, 25, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to being a person prohibited from possessing a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Charles J. Volkert, Jr., who is handling the case, stated that on October 21, 2018, the Buffalo Police Department stopped the defendant’s vehicle for a traffic infraction. Officers found Roseboro in possession of a loaded firearm and marijuana. Subsequent investigation determined that that the defendant was a habitual user of marijuana. As such, he is prohibited from possessing a firearm.
The plea is the culmination of an investigation by 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; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for August 19, 2019, before Judge Vilardo.
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