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Friday 22 February 2019
City Councilman, Former Rochester Housing Authority Chair Charged with Fraud and Money LaunderingRead 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 Adam C. McFadden, and George H. Moses, both of Rochester, NY, were charged by criminal complaint with wire fraud; conspiracy to commit wire fraud; money laundering; and conspiracy to commit money laundering. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the complaint, McFadden is a member of the Rochester City Council, and Moses is the former Chairman of the Board of Commissioners of the Rochester Housing Authority (RHA), which provides housing opportunities and services for the Rochester community and a board member of the Rochester Housing Charities (RHC). The RHA has an annual contract with the United States Department of Housing and Urban Development from which it receives millions of dollars.
As alleged in the criminal complaint, on March 25, 2015, Moses, as Chairperson of the Board of RHA, caused that Board: (a) to appoint him as one of the three new board members of the RHC, and (b) to approve a loan by the RHA to the RHC in the amount of $300,000.
On July 7, 2015, the RHC entered into an $87,500 one year contract with Capital Connection Partners LLC (CCP) in Washington, D.C. for various services including: (a) advocating at the local, state and federal level of government for policy and legislation, reviewing best practices, and issuing presentations to elected officials; and (b) finding self-sufficient resources to include creating entrepreneurial opportunities and workforce development, developing revenue streams for residents, and applying for federal home loan bank grants.
The following day, on July 8, 2105, McFadden, on behalf of his company, Caesar Development LLC, executed a contract with CCP entitled the Pass Through Funding and Services Agreement, which provided that CCP would pass through 75% of the funds it received from the RHC to Caesar Development LLC.
The defendants caused the RHC to enter into the RHC/CCP contract knowing that CCP and McFadden would not be providing the majority of the services required under the terms of the contract. The defendants also concealed that CCP would be diverting most of the funds received from the contract to McFadden.On August 3, 2015, the RHA on behalf of the RHC paid CCP $43,750, which represented the first installment payment under the terms of the RHC and CCP Contract. Thereafter, on August 8, 2015, CCP paid $32,812.50 to Caesar Development LLC, which represented 75% of the funds CCP had just received from the RHA.
Subsequently, on December 23, 2015, the RHC paid $43,750 to CCP, which represented the second installment payment under the terms of the RHC and CCP Contract. On the following day, December 24, 2015, CCP paid $32,812.50 to Caesar Development LLC, which represented 75% of the funds CCP had just received from the RHC.
To deceive the RHA and the RHC into making the payments to CCP, the defendants caused fraudulent invoices from CCP to be submitted to the RHC that falsely stated that CCP had provided various services required under the terms of the RHC/CCP contract, when in fact, such services had not been performed.
In October 2018, Moses was also charged with making false statements to Special Agents of the FBI in connection with the investigation, those charges remain pending.
In announcing the charges, U.S. Attorney Kennedy noted that, “the charges contained in the criminal complaint filed today should serve as a reminder to all public officials and holders of public office—you are elected to serve, not to take. If you put your own financial interests above the public trust, then your payback may well be the filing of federal criminal charges.”
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 Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary, and the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Acting Special Agent-in-Charge, New York Field Office.
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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Citizen of Guatemala Pleads Guilty to Immigration ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that HECTOR OVIDIO DIAZ GARRIDO, 41, a citizen of Guatemala last residing in Norwalk, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of reentry of a removed alien.
According to court documents and statements made in court, Diaz Garrido, who has never held legal status in the U.S., was deported from the U.S. to Guatemala in June 2011 following his March 2010 conviction in Connecticut Superior Court in Norwalk for felony assault on a police officer.
In April 2012, Diaz Garrido was encountered by U.S. Border Patrol in Weslaco, Texas. His prior order of removal was reinstated and he was again deported to Guatemala.
On November 6, 2014, Diaz Garrido, using the name “Jimy Diaz,” was arrested by the Norwalk Police Department and charged with operating under the influence of alcohol. On March 20, 2015, Diaz Garrido, again using the name “Jimy Diaz,” was arrested by Norwalk Police on a charge of operating a motor vehicle while under suspension. Diaz Garrido’s true identity was confirmed through fingerprint analysis in November 2018 after he was convicted of operating while under the influence, operating a motor vehicle while under suspension, and three separate counts of failure to appear, and he had served his state sentence.
Judge Dooley scheduled sentencing for May 20, 2019, at which time Diaz Garrido faces a maximum term of imprisonment of 10 years.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Cincinnati Man Sentenced to 336 Months for Distributing MethamphtamineRead the Press Release
COVINGTON, Ky. — Rodney Jackson, 42, of Cincinnati, Ohio, was sentenced on Thursday, by United States District Judge David Bunning, to 336 months in federal prison for possessing Methamphetamine with the intent to distribute.
Jackson was convicted in October 2018, following a two-day jury trial. According to the evidence, Covington Police conducting a traffic stop and found multiple baggies that contained more than 23 grams of crystal methamphetamine packaged for sale. Because Jackson had prior felony convictions for drug trafficking, he qualified as a “career offender,” pursuant to the United States Sentencing Guidelines, which subjected him to an increased sentence. Jackson was also on supervised release, for a prior federal firearms conviction, at the time of this offense.
Under federal law, Jackson must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for a term of eight years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement.
The investigation was conducted by the FBI and the Covington Police Department. The United States was represented by Assistant United States Attorney Tony Bracke.
Carjacker Who Shot Lakeland Police Officer Pleads GuiltyRead the Press Release
Tampa, Florida – Terrest Colston (28, Polk County) today pleaded guilty to carjacking, brandishing a firearm during and in relation to a crime of violence, and possessing a firearm and ammunition as a convicted felon. He faces a maximum penalty of 15 years in federal prison for the carjacking charge, a minimum mandatory term of 7 years, and up to life, in prison for the brandishing charge, and a maximum term of 10 years’ imprisonment for the possession charge. A sentencing date has not yet been set.
According to court documents, on July 11, 2018, an individual was parked in his sedan on East Lemon Street in Lakeland. Colston approached the driver’s side window of the vehicle, pointed a loaded revolver at the victim, and told him to get out of the car. The victim, in fear for his life, complied. Colston then got into the sedan and drove away. A few hours later, an officer with the Lakeland Police Department spotted the stolen vehicle and attempted to pull it over. Colston crashed the car and fled on foot. The officer caught up with Colston, and Colston shot the officer. The officer survived and returned fire, striking Colston in the leg. Additional officers arrived and took Colston into custody.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lakeland Police Department. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Canadian Man Sentenced in Absentia on Marijuana ConvictionRead 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 Robin Williams, 56, of Canada, who was convicted of unlawfully importing marijuana in the form of hashish, was sentenced, in absentia, to serve 41 months in prison, by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on November 21, 2006, the defendant attempted to enter the United States at the Peace Bridge Port of Entry with a quantity of marijuana. Some of the marijuana was found in Williams’ pants pocket. Also located in the defendant’s truck was an additional 108 pounds of marijuana.
Williams pleaded guilty on August 1, 2007, to the charge and sentencing was scheduled for November 14, 2007. However, the defendant failed to appear for sentencing. In light of Williams’ continued failure to appear for sentencing, Judge Arcara granted a motion filed by the Government to have the defendant sentenced in absentia.
The sentencing is the result of an investigation by the U.S. Department of Homeland Security Investigations, under the direction of Special Agent-in-Charger Kevin Kelly.
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Canadian Drug Trafficker Sentenced to 7 Years in Prison for Ecstasy Smuggling ConspiracyRead the Press Release
A Canadian who smuggled ecstasy (MDMA) into the U.S. by hiking across rugged areas of the northern border was sentenced today in U.S. District Court in Seattle to seven years in prison, announced U.S. Attorney Brian T. Moran. NATHAN HALL, 41, was identified as the second smuggler in an unsuccessful attempt to bring more than 20 kilos of ecstasy into the U.S. in April 2013. HALL was identified by his co-defendant, Border Patrol agents, and information in a backpack dropped at the scene. Authorities believe HALL was the second suspect who fired a shot when confronted by agents. HALL denies he was the gunman but admits that he did carry a firearm on an earlier smuggling run in March 2013. The presence of the firearm strapped to his thigh was captured by a trail camera near the border. At the sentencing hearing, U.S. District Judge Robert S. Lasnik noted HALL “has a history of chronic lying, using fake ID, and ignoring court orders.”
According to records filed in the case, HALL was a member of a conspiracy that transported ecstasy in backpacks by hiking over rough rural terrain at the border. The ecstasy was then transported to California for distribution. On a smuggling run in April 2013 near Sumas, Washington, two smugglers wearing camouflage clothing were confronted by Border Patrol Agents. One smuggler, Jeffrey Laviolette, was taken into custody and ultimately sentenced to ten years in prison. The second smuggler fired a shot, dropped his backpack, and ran back into Canada. The backpack contained identification documents with HALL’s photo but a fake name. HALL was later arrested in Canada. The process of extraditing HALL from Canada took more than five years. In November 2018, HALL pleaded guilty to Conspiracy to Distribute MDMA and Possession of a Firearm in Furtherance of a Drug Trafficking Offense. HALL continues to deny he is the smuggler who fired the shot but admits carrying a firearm previously.
HALL will likely be deported following his prison term. He can petition for treaty transfer back to Canada.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
The case was investigated by Homeland Security Investigations, U.S. Border Patrol, U.S. Customs and Border Protection Air and Marine, Coast Guard Investigative Services, and the Whatcom County Sheriff’s Office with assistance from the Abbotsford Police Department and the Royal Canadian Mounted Police (RCMP).
The case was prosecuted by Assistant United States Attorneys Sarah Vogel and Marie Dalton.
Bomb Plotter Sentenced for Possession of Child PornographyRead the Press Release
WICHITA, KAN. – Already sentenced to prison for his role in a bomb plot, Patrick Stein, 50, of Wright, Kan., pleaded guilty today and was sentenced to an additional 44 months in federal prison for possession of child pornography, U.S. Attorney Stephen McAllister said.
Stein pleaded guilty to one count of possessing child pornography. In his plea, he admitted investigators found up to 149 images of children engaged in sexual activities on his laptop computer and USB drives.
Investigators found the child pornography after obtaining a warrant to search Stein’s computer for evidence of his part in a plot to detonate multiple bombs at an apartment complex in Garden City where Somali refugees were living.
In January, Stein was sentenced to 30 years in federal prison for his role in the bomb plot. He will serve the sentence in the child pornography consecutively with the sentence in the bomb case.
McAllister commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Baggage Handler at Newark International Airport Convicted of Narcotics Trafficking and Firearms Offenses in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that TYRONE WOOLASTON was found guilty yesterday of conspiring to distribute more than five kilograms of cocaine, and using a firearm in furtherance of cocaine trafficking, in connection with a multi-year scheme to smuggle cocaine into the United States through Newark International Airport. A unanimous jury convicted WOOLASTON after a two-week trial before United States District Judge Robert W. Sweet.
U.S. Attorney Geoffrey S. Berman said: “As proven at trial, Tyrone Woolaston abused his position as an airline employee with secure access to restricted areas of Newark International Airport. In reality, Woolaston was also a drug dealer, who smuggled large cocaine shipments through the airport and into the United States. To protect his drug dealing operation, Woolaston possessed an arsenal of weapons, including a .40 caliber Glock pistol equipped with a laser sight. Thankfully, Woolaston now stands convicted and faces at least 15 years in prison.”
According to court documents and the evidence at trial:
WOOLASTON was a lead baggage handler for a commercial airline at Newark Liberty International Airport (the “Airport”). From in or about 2013 through February 2018, WOOLASTON conspired to smuggle shipments of cocaine into the United States. WOOLASTON abused his secure access to the restricted areas of the airport to remove suitcases containing shipments of multiple kilograms of cocaine from international flights and smuggle them through the Airport for distribution in the New York City area.
In 2017 and 2018, agents from the New Jersey Office of the Department of Homeland Security, Homeland Security Investigations (“HSI”) conducted an undercover operation to investigate cocaine smuggling at the Airport. As part of the investigation, a confidential source met with WOOLASTON to arrange a cocaine shipment, and WOOLASTON agreed to bring a suitcase containing five kilograms of cocaine through the Airport. On February 10, 2018, HSI agents placed a suitcase containing approximately five kilograms of sham cocaine on an international flight from the Cayman Islands to the Airport. WOOLASTON was working on the tarmac when the flight arrived at the Airport, and took possession of the suitcase and carried the sham cocaine shipment through the Airport, evading customs screening. The following day, WOOLASTON carried a .40 caliber Glock pistol, equipped with a laser sight, to deliver the sham cocaine to the confidential source.
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WOOLASTON, 35, of Orange, New Jersey, was convicted of one count of conspiracy to distribute at least five kilograms of cocaine, which carries a maximum sentence of life in prison and a mandatory minimum sentence of ten years in prison, and one count of using a firearm in furtherance of narcotics trafficking, which carries a maximum sentence of life in prison and a mandatory minimum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the Newark Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The U.S. Customs and Border Protection and Port Authority Police Department assisted in the investigation.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Thane Rehn and Alison Moe are in charge of the prosecution.
Atlantic County, New Jersey, Man Admits Distributing Images of Child Sexual AbuseRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted his role in distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Carlos Santiago-Gomez, 29, of Absecon, New Jersey, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to one count of distributing images of child pornography and was detained without bail.
According to documents filed in this case and statements made in court:
On March 27, 2018, law enforcement officers from the FBI’s Atlantic City Child Exploitation Task Force executed a search warrant at Santiago-Gomez’s residence in Absecon, New Jersey, and seized multiple items of digital evidence, including cell phones, CD discs, thumb drives, hard drives and computers, which contained thousands of images of child sexual abuse. Agents also located evidence showing that in July and August 2017, Santiago-Gomez posted videos of child sexual abuse on at least two KIK instant message groups, while also acting as the administrator of one of those groups.
The count of distribution of child pornography is punishable by a minimum of five years in prison and a maximum of 20 years in prison, and a fine of $250,000. Sentencing is scheduled for June 6, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner; the Atlantic County Sheriff’s Office, under the direction of Sheriff Eric Scheffler; and N.J. Human Services Police, under the direction of Director Timothy J. Gallagher, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
Defense counsel: Brenden T. Shur Esq., Northfield, New Jersey
12 Aliens Indicted for Illegally Reentering the United StatesRead the Press Release
PANAMA CITY & PENSACOLA – Lawrence Keefe, United States Attorney for the Northern District of Florida, announced today that 12 previously deported aliens have been indicted separately by a federal grand jury for illegal reentry into the United States.
U.S. Attorney Keefe said: “Enforcing immigration laws is a priority of the Department of Justice, along with protecting all members of our community. Although our office regularly charges illegal reentry cases, the cases below represent an unprecedented number of illegal reentry cases charged in our district at a particular time during the past five years. The Northern District of Florida, along with our law enforcement partners and U.S. Attorneys Offices throughout the country, are committed to upholding our federal immigration laws to ensure that only those entering our country through a lawful process are allowed access.”
Yony Javier Barraona Lopez, 25, of Honduras, allegedly reentered the United States illegally in December 2018, after being deported in 2011, 2013, and 2015. He was located in Crestview.
Erick Geovanni Carrillo-Franco, 46, of Guatemala, allegedly reentered the United States illegally in January 2019, after being deported in 2014. He was located in Pensacola.
Freddy David Chavez-Lopez, 31, of Guatemala, allegedly reentered the United States illegally in January 2019, after being deported in 2006 and 2010. He was located in DeFuniak Springs.
Juan Alejandro Cortes-Sabillon, 47, of Honduras, allegedly reentered the United States illegally in January 2019, after being deported in 2004 and 2005. He was located in Panama City.
Javier Gonzalez-Valdivia, 56, of Mexico, allegedly reentered the United States illegally in January 2019, after being deported in 2010. He was located in Okaloosa County.
Fransis Leonei Lima-Sanchez, 25, of Guatemala, allegedly reentered the United States illegally in January 2019, after being deported in 2017. He was located in Okaloosa County.
Ricardo Alejandro Maldonado-Lopez, 35, of Honduras, allegedly reentered the United States illegally in January 2019, after being deported in 2003, 2009, and 2014. He was located in Panama City.
Jose Luis Ortiz-Maradiaga, 27, of Mexico, allegedly reentered the United States illegally in January 2019, after being deported in 2016 and 2017. He was located in Crestview.
Danis Ramiro Sanchez-Sandoval, 28, of Honduras, allegedly reentered the United States illegally in January 2019, after being deported in 2012. He was located in Panama City Beach.
Juan Sopino-Sanchez, 41, of Guatemala, allegedly reentered the United States illegally in November 2018, after being deported in 2011 and 2012. He was located in Okaloosa County.
Juan Vasquez-Reymundo, 34, of Mexico, allegedly reentered the United States illegally in January 2019, after being deported in 2009. He was located in Panama City.
Gabriel Villela, 30, of Mexico, allegedly reentered the United States illegally in January 2019, after being deported in 2008 and 2012. He was located in Milton.
The penalty for illegally reentering the United States after deportation is a maximum of two years in prison and a $250,000 fine. Cortes-Sabillon faces an enhanced maximum sentence of 10 years in prison based on his prior criminal history, which includes a felony conviction. Lima-Sanchez, Maldonado-Lopez, and Sanchez-Sandoval face an enhanced maximum sentence of 20 years in prison, due to prior criminal records with aggravated felony convictions.
The cases are being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Enforcement and Removal Operations (ERO), the Okaloosa County Sheriffs Office, and the Panama City Beach Police Department. Assistant United States Attorneys Aine Ahmed, Michelle K. Daffin, Alicia H. Forbes, Edwin F. Knight, J. Ryan Love, and James M. Ustynoski are prosecuting the cases.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
"Operation Smooth Criminal” Receives National OCDETF AwardRead the Press Release
Indianapolis B United States Attorney Josh Minkler announced today that the Southern District of Indiana was the recipient of the 2018 Organized Crime Drug Enforcement Task Forces (OCDETF) National Award for Innovative Investigation Efforts for the multi-agency investigative work conducted during “Operation Smooth Criminal.” This prestigious national award most exemplifies the mission and spirit of the OCDETF Program and recognizes the many agencies within the Southern District of Indiana involved in “Operation Smooth Criminal.”
Recognized for their contribution to this successful investigation were investigators Louis Arona, Drug Enforcement Administration (DEA), DeMarkus Calhoun, United States Postal Inspection Service (USPIS), Seth Murray, Internal Revenue Service – Criminal Investigation (IRS - CI), and Assistant United States Attorneys Cindy J. Cho and MaryAnn T. Mindrum.
“The Department’s OCDETF successes would not be possible but for the courageous sacrifices made by dedicated public servants like the agents and AUSAs assigned to this operation,” said United States Attorney Minkler. “After more than 20 years, I continue to be impressed with these tireless commitments to safety and the rule of law. We especially appreciate this recognition of creative and innovative enforcement oftentimes necessary to meet criminals where they hide.”
“The false sense of anonymity provided by the Dark Web and the subterfuge practiced by the suspects in this case was no match for the combined efforts of federal law enforcement,” said Patricia Armstrong, Inspector in Charge of the U.S. Postal Inspection Service, Detroit Division. “The investigative work that led to the distinguished national OCDETF award for Operation Smooth Criminal serves as a model for tackling these complex cases through utilizing innovation.”
“The strength of the DEA has always, and continues, to thrive from the partnerships forged with our various law enforcement counterparts. This award marks a pivotal point in law enforcement history. While today’s traffickers are taking advantage of enhanced technology like encryption and virtual currencies, the men and women of our modern-day law enforcement community are exploring new and innovative ways to dismantle these operations,” said DEA’s Brian M. McKnight.
“IRS Criminal Investigation has dedicated resources to understanding and tracking financial transactions in the cyber environment,” said Gabriel Grchan, IRS Criminal Investigation Special Agent in Charge. “Special Agent Seth Murray’s work on Operation Smooth Criminal is a fine example of our successes in the evolving area of cyber financial crime. Criminals often think they can exploit the anonymity of the cyber world; however, IRS-CI and our partners are right there to shut them down. I am proud of the work of Special Agent Murray and everyone who was a part of this outstanding investigative team. I congratulate Seth and all the award recipients for their exemplary efforts.”
“Operation Smooth Criminal” was an investigation spanning over four years that ultimately dismantled a heroin and cocaine distribution ring supplying drugs regionally and throughout the country. What began as an investigation into drug trafficking on the Dark Web led to the ultimate arrest and conviction of Burnett, a/k/a “Doe,” the leader of a major heroin and cocaine distribution ring in the Indianapolis area and elsewhere. In October 2013, federal law enforcement agencies shut down the Dark Web site Silk Road. Through a joint investigation by DEA, USPIS, and the IRS-CI, law enforcement learned that Lee Gray, a Camby, Indiana, resident at the time, was selling heroin and cocaine in exchange for bitcoins on Silk Road, and later other Dark Web sites such as Black Bank. Gray shipped the drugs to customers located throughout the United States using the U.S. mail. Gray then laundered his bitcoins using foreign bitcoin-exchange companies to wire U.S. currency into multiple bank accounts in his own and other names. He also sold bitcoins on the Dark Web to other users in exchange for cash that the other users mailed to him. Gray obtained his supply of heroin and cocaine from Burnett. From at least 2012 through August 18, 2015, Burnett obtained heroin and cocaine directly from a Mexican source of supply, and would pay the Mexican source by delivering large bags of money to Mexican couriers. Burnett distributed the drugs to drug distributers, including Gray and Alan Duncan (a/k/a “Al Gore”), another drug distributor in the Southern District of Ohio, who sold these drugs within and outside of their local communities. Burnett was responsible for distributing at least 17 kilograms of heroin and 25 kilograms of cocaine during the course of the conspiracy. Burnett received a sentence of 188 months imprisonment. Gray received a sentence of 75 months. Gore received a sentence of 150 months imprisonment in Ohio.
This investigation’s success was possible due to the collaborative efforts by multiple organizations, including the DEA Indianapolis Office, USPIS, IRS - CI, DEA Dayton Office, U.S. Attorney’s Office for the Southern District of Indiana and U.S. Attorney’s Office for the Southern District of Ohio.
Thursday 21 February 2019
Worcester Food Market Settles Allegations of Food Safety Law ViolationsRead the Press Release
BOSTON – A retail food market in Worcester – warned on four occasions since October 2013 by federal investigators about food safety violations – has entered into a consent decree with the government stipulating that it will not violate food safety laws, and that it will be subject to strict penalties if violations are found in the future.
Boaben Enterprises Inc., d/b/a J&W Aseda Marketplace, and its owners, Vida Causey and Wilton Causey, have entered into a consent decree that permanently enjoins them from violating the Federal Meat Inspection Act (FMIA). The government filed its complaint after a series of U.S. Department of Agriculture (USDA) Food Safety and Inspection Service (FSIS) surveillance activities of J&W Aseda Marketplace showed that the defendants had purchased, offered for sale, and sold meat products that were not inspected by the FSIS, and that they had failed to maintain appropriate business records concerning the purchase and sale of these products. The proposed consent decree was filed with the court and is awaiting judicial approval. Under the consent decree, USDA investigators will continue to have broad access to the premises of J&W Aseda Marketplace or any other establishment where Vida Causey and/or Wilton Causey sell, or offer for sale, meat food products. The defendants will also face significant financial penalties for any further violations of the FMIA.
“The sale of uninspected meat products is a significant health risk to consumers,” said United States Attorney Andrew E. Lelling. “This consent decree is designed to prevent this business, and its owners, from further jeopardizing the health of customers.”
“FSIS investigators are working 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.”
U.S. Attorney Lelling and FSIS Administrator Rottenberg made the announcement today. Assistant United States Attorney Steven Sharobem of Lelling’s Civil Division handled the case.
Woman sentenced for firearms violationsRead the Press Release
GREAT FALLS—A California woman who was stopped in Chouteau County while driving a stolen vehicle was sentenced today to three years in prison and three years of supervised release for conviction on a firearms crime, U.S. Attorney Kurt Alme said.
Nikki Graham, 31, of Ventura, Calif., pleaded guilty in November to being a felon in possession of a firearm.
U.S. District Judge Brian M. Morris presided.
Prosecutors said Graham was stopped on Dec. 5, 2017 by a Chouteau County sheriff’s deputy while driving a stolen Chevy Tahoe. Three other persons, including two juvenile males, also were in the vehicle. Graham had a .40-caliber handgun. She handed the firearm to one of the juveniles, telling him to take it because as a juvenile, he would not get into as much trouble as she would. Graham, who has felony convictions in California for burglary, possession of a controlled substance and receiving stolen property, was prohibited from possessing firearms.
Assistant U.S. Attorney Jared Cobell prosecuted the case, which was investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Rocky Boy’s Tribal Police and Choteau County Sheriff’s Office.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Wilmington Gang Leader Sentenced on Drug and Gun Charges Following Undercover OperationRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge James C. Dever, III, sentenced Victor Eugene Dorm, 30, of Wilmington to 240 months’ imprisonment, followed by 5 years of supervised release.
On November 14, 2018, DORM pled guilty to five counts: conspiracy to distribute and possess with intent to distribute a quantity of cocaine and 28 grams or more of crack cocaine; distribution of a quantity of heroin; manufacture, distribution, and possession with intent to distribute 28 grams or more of cocaine base; use and carry a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a convicted felon.
DORM was the fourth of six co-defendants to be sentenced in this case. Three men have received sentences ranging from 60 to 204 months:
- On May 23, 2018, Eugene Telphia Grady, Jr., was sentenced to 60 months’ imprisonment and 6 years of supervised release, following his guilty plea to a charge of conspiring to distribute crack cocaine.
- On October 3, 2018, James Flowers was sentenced to 120 months’ imprisonment and 5 years of supervised release, following a guilty plea to conspiring to manufacture, distribute and possess cocaine and 28 grams of more of crack cocaine; manufacture, distribution, and possession with intent to distribute 28 grams or more of crack cocaine; and use and carry a firearm in furtherance of a drug trafficking crime.
- Also on October 3, 2018, Sylvester Lorenzo Hooper, Jr., was sentenced to 204 months’ imprisonment and 8 years of supervised release, following his guilty plea to conspiring to distribute 28 grams or more of crack cocaine; possession of a firearm by a convicted felon; and distribution of a quantity of crack cocaine.
Two additional co-defendants have entered guilty pleas and have sentencing hearings pending:
- On July 9, 2018, Rufus “Rudy” Parker pled guilty to six counts of distributing cocaine, and on November 30, 2018, he pled guilty to an additional count of conspiring to distribute powder cocaine.
- On January 22, 2019, Joseph Anthony Vaught pled guilty to conspiring to distribute and possess with intent to distribute 500 grams or more of cocaine; and possessing a firearm in furtherance of a drug trafficking crime.
Parker and Vaught are currently scheduled to be sentenced in April of this year.
These convictions are the result of a long-term undercover operation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and officers of the Wilmington Police Department, beginning in December 2016 and continuing until the return of the federal indictment in August of 2017. Victor DORM, a principal target of the investigation, was a leader of a subset of the Bloods street gang known as the Bounty Hunter Bloods. DORM held a leadership role in the gang and had three prior state felony drug convictions and two prior state convictions for being a felon in possession of a firearm.
During the course of the investigation, law enforcement was able to conduct a large numbers of controlled purchases of contraband from each of the six co-defendants, as well as from five additional men who have pled guilty in separate federal cases. The confidential informant and undercover agents conducted roughly three-dozen transactions, purchasing cocaine, crack cocaine, heroin, counterfeit currency, and multiple firearms. DORM himself made 13 of the sales. In transactions dating from December 14, 2016, to July 10, 2017, DORM sold the CI nearly 600 doses of heroin, 100 doses of fentanyl, 4 grams of crack cocaine, over $1,000 in counterfeit currency, an M4 assault rifle, a second rifle, and five handguns, including two M-11 9mm pistols with high capacity magazines. On another occasion, law enforcement witnessed DORM manufacturing crack cocaine.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Wilmington Police Department, the New Hanover County Sheriff’s Office, and the Brunswick County Sheriff’s Office. Assistant United States Attorneys Jake D. Pugh represented the government.
Vermont Man Charged with Attempting to Meet a Minor for SexRead the Press Release
ALBANY, NEW YORK –John Curley, age 48, of Chester, Vermont, was arrested on Tuesday and charged with traveling in interstate commerce for the purpose of meeting a minor for sex.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to a criminal complaint, Curley used an internet-based, adult-oriented social networking service to solicit sex from someone he thought was a 12-year-old girl, but who was actually a police investigator acting in an undercover capacity. Curley was arrested in Fort Ann, New York, where Curley believed he was going to meet the 12-year-old girl for sex. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Curley appeared yesterday before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending further proceedings.
If convicted, Curley faces up to 30 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police, and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Vallejo Couple Indicted for Manufacturing Methamphetamine Pills at Elder Care FacilityRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a seven-count indictment today against Henry Benson, 37, and Roselle Cipriano, 35, of Vallejo, charging them with conspiracy to distribute and manufacture methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime, U.S. Attorney McGregor W. Scott announced. Benson was also charged with being a felon in possession of a firearm.
According to court documents, Benson and Cipriano manufactured pills inside a building that also housed an eldercare facility that they owned and operated in Vallejo. They manufactured the pills in various colors and shapes, including the Kool-Aid smiling pitcher, a likeness of President Donald J. Trump’s face, the Tesla emblem, and minions. Although the pills were sold as MDMA, they were found to contain methamphetamine.
When the eldercare facility was searched on February 7, 2019, agents seized a pill press, 31 pounds of methamphetamine pills, 17 pounds of suspected methamphetamine, various other powders and manufacturing equipment, and a shotgun within three feet of the pills. A search warrant executed the next day at a storage facility rented by Benson and Cipriano turned up five additional pill presses, hazmat clothing, and additional powder suspected of containing narcotics.
This case is the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Benson and Cipriano are in custody pending trial. If convicted, they each face 10 years to life in prison and a $1 million 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
United States Attorney’s Office continues its commitment to youth through leadership leagueRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler will celebrate the graduation of the second USAO Leadership League class at Daniel Webster Elementary School during a ceremony this week. Leadership League is a six-week, after-school program that teaches conflict resolution through lessons and hands-on activities. A collaborative effort, Leadership League paired fifth and sixth grade students with mentors from the United States Attorney’s Office, the United States District Court, the Indianapolis Metropolitan Police Department and Aero Industries. With the help of Peace Learning Center Facilitator Francesca Keesee, the group learned the “STEPS” of conflict resolution: Staying calm, Telling your story, Exploring other points of view and Problem Solving.
“Empowering these young men and women with non-violent conflict resolution skills will help guide and prepare them for life,” said Minkler. “Society portrays violence as a way to solve issues. The Leadership League gives options that will translate into success in school, the community, and in the City of Indianapolis.”
The 2019 graduates include: NaTaiyah Bean, Jose Gomez, Tamarus Gray, Jarrell Green, Tyree Jarrard, La-Zavion Horns, Xaviea Lewis, Jayme Orner, Haylie Parrott, Nevaeh Russell, Madison Sterrett, Allyssa White, and Donnavon Williamson.
Leadership League mentors were: USAO employees Taylor Kirklin, Lindsay Karwoski, Jeffrey Preston, Janelle Peters, Shaquanna Shockley, Michelle Butler, Stephanie Lloyd, Jennifer Ross, and Deb Mathies; USDC law clerks Michael Mohler and Landyn Rookard; IMPD Officers William Young and Jason Norment; and AERO Industries employees Michelle Gent and Melissa Reisinger. Assistant U.S. Attorney Kelly Rota conceptualized and led the program in partnership with the United States Attorney’s leadership team.
This effort marks the fifth time that USAO-SDIN has collaborated to provide programming with Daniel Webster Elementary School. Previous projects include: The Pledge Against Gun Violence, the You Are Beautiful Project, and the Courage Project. The first Leadership League class graduated in May 2018.
This year’s graduation will be held February 22, 2019, at 9:30 a.m. at Daniel Webster Elementary School #346, 1450 S. Reisner Street, Indianapolis, IN 46221. The public is invited.
Leadership League demonstrates our office’s continued commitment to maintaining support for community outreach program with the help of our community partners. (See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 10.2).
U.S. Attorney’s Office for Western District of Washington Collects more than $11 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
Seattle - U.S. Attorney Brian T. Moran announced today that the Western District Washington collected $11,162,511 in criminal and civil actions in Fiscal Year 2018. Of this amount, $6,797,143 was collected in criminal actions and $4,365,367 was collected in civil actions.
Additionally, the Western District of Washington worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $39,535,912 in cases pursued jointly by these offices. Of this amount, $15,751 was collected in criminal actions and $39,519,761 was collected in civil actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the ninety-four U.S. Attorneys’ offices.
“While you cannot put a price on justice, sometimes a just result means victims and taxpayers get restitution thanks to the diligent work of our attorneys and professional staff,” said U.S. Attorney Brian T. Moran. “Even years after the criminal conviction or civil settlement, members of our Financial Litigation Unit work hard to identify assets that should go to those who are victimized by fraud and other crimes.”
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
Some of the largest collections involve false billings and fraud on government programs. In August 2018, International Marine and Industrial Applicators LLC and Marine Equipment Supply LLC paid $2.8 million to settle claims for work which it had fraudulently billed the Navy at Puget Sound Naval shipyards. In a second case, prominent tourist ship captain Paul D. LaMarche paid $354,769 as part of a civil settlement and criminal penalty for defrauding the Railroad Disability program. Some of last year’s collections were from cases prosecuted as early as 2013. Last year, the office secured $114,661 for victims of investment fraud figure Mark Spangler and $188,820 for victims of Enumclaw financial advisor Aaron Travis Beaird.
In addition to restitution and civil settlements, the U.S. Attorney’s Office for the Western District of Washington forfeited property totaling $2,178,980. That amount includes forfeitures in U.S. v. ONG where the government seized more than $1 million in bitcoin and $235,000 in cash.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the Department of Education.
U.S. Attorney’s Office and Law Enforcement Partners Announce Expansion of “Project EJECT” to Mississippi Gulf CoastRead the Press Release
Moss Point, Miss. – Today, Mike Hurst, the United States Attorney for the Southern District of Mississippi, along with the Moss Point Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jackson County Sheriff’s Office, the local District Attorney’s Office, and other federal, state and local law enforcement agencies, announced the expansion of an initiative to combat violent crime called "Project EJECT" into Jackson County and the City of Moss Point.
Launched by the U.S. Attorney’s Office for the Southern District of Mississippi in December 2017 in the City of Jackson under the U.S. Department of Justice’s Project Safe Neighborhoods ("PSN") initiative, Project EJECT is designed as an enhanced violent crime reduction program that incorporates decades of experience in bringing various levels of law enforcement together with stakeholders in the community, with the overall goal of producing a long-term, meaningful reduction in and prevention of violent crime.
In expanding the initiative into other parts of the Southern District of Mississippi, Project EJECT now stands for: "Empower Justice Expel Crime Together."
Joined by law enforcement in Moss Point, U.S. Attorney Hurst described the project as a multi-disciplinary, holistic approach that combines law enforcement arrests and prosecutions of violent criminals with prevention efforts, rehabilitation and reentry, educational initiatives, and improved communication.
"We are excited about the potential for this successful crime fighting initiative to help the citizens of Moss Point and Jackson County. By working together with our law enforcement and community partners, Project EJECT will effectively address this increase in violent crime and make our neighborhoods safer. The message to violent criminals is simple - if you violate our laws and terrorize our neighborhoods, you will be ejected from our community. In the federal system, we will immediately lock you up, we will move to detain you without bond, and you will serve a significant prison sentence without parole. But, we will also seek to prevent crimes before they occur and will work with offenders to help them get back on their feet. At the end of the day, we all want safer communities," said U.S. Attorney Hurst.
The mission of Project EJECT is to reduce violent crime and make Moss Point neighborhoods safer for all to enjoy. Part of the project will include discussions with the public and encouraging communities to help law enforcement in this effort, as well as communicating to the criminals that they will be prosecuted and punished for gun crimes and violent crimes. The Project will also seek to support locally-based efforts to stop violence and crimes before they occur and to help those who have been punished to reenter society as law-abiding citizens.
Project EJECT is comprised of a number of federal law enforcement agencies, as well as task force officers from various state and local investigative agencies, who will interact regularly with the Moss Point Police Department and the District Attorney’s Offices to identify and respond to violent crimes when they occur. Cases arising from these crimes will then be presented to the local District Attorney’s Offices and the U.S. Attorney’s Office for prosecution.
For the first time ever, the U.S. Attorney’s Office is specifically dedicating an Assistant United States Attorney in Gulfport to prosecute violent crime in the City of Moss Point under this project.
Project EJECT follows a directive from former U.S. Attorney General Jeff Sessions to the U.S. Department of Justice to reinvigorate DOJ’s Project Safe Neighborhoods with the intent to reduce the rising tide of violent crime in America. Project EJECT is the Southern District of Mississippi’s PSN initiative specifically tailored to address violent crime throughout the district.
In December 2018, at the 2018 Project Safe Neighborhoods (PSN) National Conference, Acting Attorney General Matthew Whitaker presented the U.S. Attorney’s Office for the Southern District of Mississippi and its law enforcement partners with the award for Outstanding Overall Partnership/Task Force for Project EJECT. Only 16 awards were given during the annual PSN National Conference, which recognize individuals and groups for their dedication and contribution to the success of PSN. Project EJECT was one of only two recognized as the best partnerships or task forces in the nation.
In expanding Project EJECT into Moss Point, the U.S. Attorney’s Office continues to lead the Project, with First Assistant U.S. Attorney Darren LaMarca and Criminal Chief Courtney Coker guiding the task force initially, Assistant U.S. Attorney Chris Carter in Gulfport serving as the primary prosecutor for violent cases under Project EJECT in Moss Point, long-time Assistant U.S. Attorney Annette Williams in Gulfport serving as a senior advisor and prosecutor, and Assistant U.S. Attorney Candace Mayberry in Jackson serving as the Project Safe Neighborhoods Coordinator for the entire Southern District of Mississippi.
U.S. Attorney’s Office Reaches Agreement with Rider University to Resolve Allegations Under the American with Disabilities ActRead the Press Release
NEWARK, N.J. – The United States has reached an agreement with Rider University to settle allegations that the school violated the Americans with Disabilities Act (ADA) by failing to make reasonable modifications to its policies, practices, and procedures for students with food allergy-related disabilities, U.S. Attorney Craig Carpenito announced today.
The matter originated from a complaint by a former Rider student with celiac disease, which is triggered by consumption of gluten. Celiac disease can cause permanent damage to the surface of the small intestines and an inability to absorb certain nutrients, leading to vitamin deficiencies that affect the brain, nervous system, bones, liver and other organs. According to the complaint, Rider University did not provide reasonable modifications to its policies, practices, and procedures regarding its dining program.
The ADA prohibits discrimination against individuals with disabilities by public accommodations, including colleges and universities. Under the ADA, a disability is any mental or physical impairment that substantially limits a major life activity, and the ADA includes a wide range of major life activities – including eating – and the operation of major bodily functions, like the immune system. The ADA requires colleges and universities to reasonably modify their policies, practices or procedures when necessary to avoid disability discrimination, unless such entities can demonstrate that the modifications being sought would fundamentally alter the nature of the goods and services of the university.
The U.S. Attorney’s Office determined that Rider University failed to provide reasonable modifications to its policies, practices, and procedures for students with food allergy-related disabilities and failed to adequately train its staff on appropriate policies for accommodating individuals with food allergies. Since the beginning of the investigation, Rider University has worked cooperatively to develop and amend its policies and practices to comply with the ADA.
The settlement agreement requires Rider University to adopt policies for accommodating students with food allergy-related disabilities instead of relying on the limited policies of a food service vendor, make certain structural changes to food service areas to provide allergen-free food preparation areas in its dining facilities, employ a full-time dietician to advise the University and its students on ways to address food allergy-related disability issues, and create a “pre-order” option for students with food allergies.
“We commend Rider University on working to ensure that its students with severe food allergies have options that meet their needs,” US Attorney Craig Carpenito said. “This agreement will improve the experience of students with food allergy-related disabilities and help them to focus on getting an education.”
The government is represented by Assistant U.S. Attorney Daniel Meyler and Michael E. Campion, chief of the Civil Rights Unit, of the U.S. Attorney’s Civil Division in Newark.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
U.S. Attorney’s Office for the Middle District of Pennsylvania Collects over $20 Million on Behalf of U.S. Taxpayers in Fiscal Year 2018Read the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the Middle District of Pennsylvania collected $20.2 million in criminal and civil actions in Fiscal Year 2018. Of this amount, $4 million was collected in criminal actions and $16 million was collected in civil actions. The $20.2 million collected in FY 2018 represents approximately double the appropriated budget for the office.
Additionally, the U.S. Attorney’s Office in the Middle District of Pennsylvania worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1.1 million in cases pursued jointly by these offices. Of this amount, $14,637 was collected in criminal actions and $1.1 million was collected in civil actions.
In November 2018, the Middle District of Pennsylvania received $70 million as part of the settlement in U.S. v. MoneyGram International, Inc. as a result of a Deferred Prosecution Agreement including a forfeiture settlement. MoneyGram will be charged by information for knowingly and intentionally aiding and abetting wire fraud and willfully failing to implement an effective anti-money laundering program. Forfeiture of the $70 million will be processed administratively by the United States Postal Inspection Service, and the district will be credited for an out of court forfeiture settlement. MoneyGram was involved in consumer fraud schemes perpetrated by corrupt MoneyGram agents and others. In the fraud scams, which generally targeted the elderly and other vulnerable groups, perpetrators contacted victims in the United States and falsely posed as victim’s relatives in urgent need of money, falsely promised large cash prizes, or promised items for sale over the internet at deeply discounted prices. The perpetrators required the victims to send funds through MoneyGram’s money transfer system.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
“The men and women of the United States Attorney’s Office for the Middle District of Pennsylvania are dedicated to the protection of our fellow law-abiding citizens, whether we are battling the scourge of drugs and violent crime or attacking scams designed to defraud government agencies,” said U.S. Attorney Freed. “I am pleased that our collection efforts both in the District and nationwide have far exceeded our cost to the taxpayers”.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
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U.S. Attorney's Office Collects More Than $5 Billion in Fiscal Year 2018Read the Press Release
BOSTON - U.S. Attorney Andrew E. Lelling announced today that the District of Massachusetts collected more than $5.213 billion in criminal and civil actions in Fiscal Year 2018. Of this amount, more than $4.9 billion was collected by the District alone - $25,028,095 in criminal actions, and $4,906,284,211 in civil actions.
The District of Massachusetts also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $282,208,233 in cases pursued jointly. As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion budget for the 94 U.S. Attorneys’ Offices.
In addition to these civil and criminal collections, the District of Massachusetts was also responsible for the forfeiture of $20,788,659 in criminal proceeds, or other property involved in crimes, in Fiscal Year 2018.
“I’m proud of the work the prosecutors in my office have done to secure more than $5 billion in civil and criminal collections, and asset forfeitures, in 2018 alone,” said U.S. Attorney Andrew E. Lelling. “The District of Massachusetts has long been a leader in financial recoveries in the areas of health care fraud, securities fraud and civil settlements, and we will continue to aggressively pursue collections that return money to victims of crime and U.S. taxpayers, and that deprive criminals of their ill-gotten gains.”
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
In August 2018, the District of Massachusetts announced a $4.9 billion settlement with the Royal Bank of Scotland Group, which was the largest penalty ever imposed on a single entity by the Justice Department for financial crisis-era misconduct.
U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws, or fines for other fraudulent conduct. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
Two Individuals Charged with Attempted Robbery of Smithgall’s Pharmacy in Lancaster, PARead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that Brandon Galette, 24, of Harrisburg, PA, and Andrew Garrett, 24, of Steelton, PA, were charged today by Indictment with one count of attempted robbery which interferes with interstate commerce and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. Galette is also charged with possession of a firearm by a convicted felon. The Indictment charges Galette and Garrett for their alleged participation in the October 23, 2018 attempted robbery of Smithgall’s Pharmacy in Lancaster, PA, during which they allegedly attempted to steal prescription opioids.
If convicted, the defendants each face a maximum penalty of lifetime imprisonment, with a mandatory minimum of seven years in prison, to be served consecutive to any other sentence imposed, plus five years of supervised release. Additionally, Galette faces a $750,000 fine and a $300 special assessment, while Garrett faces a $500,000 fine and a $200 special assessment.
“Stemming the tide of violent crime in our communities is a top priority of the Department of Justice and my Office,” said U.S. Attorney McSwain. “People looking to make a quick buck by robbing convenience stores, pharmacies, and other businesses beware: this conduct is a federal crime, and if you are convicted, you will face stiff penalties under federal law.”
The case is being investigated by the Federal Bureau of Investigation and the Lancaster City Bureau of Police, and it is being prosecuted by Assistant United States Attorney Timothy M. Stengel.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Defendants Sentenced in Drug Conspiracy InvestigationRead the Press Release
Abingdon, VIRGINIA –Two members of a drug distribution organization that trafficked methamphetamine, heroin, oxycodone, cocaine, and other drugs from Georgia into Southwest Virginia were sentenced recently in federal court in Abingdon on drug conspiracy charges. United States Attorney Thomas T. Cullen and Virginia Attorney General Mark R. Herring made the announcement today.
“Opioids and crystal methamphetamine are highly addictive and potentially deadly drugs,” U.S. Attorney Cullen stated today. “We will continue to work with our federal, state, and local law enforcement partners to stanch the flow of these substances into Southwest Virginia and prosecute the individuals and organizations responsible for trafficking in them.”
“Reducing the availability of crystal methamphetamine and other drugs in Southwest Virginia remains a high priority for my office. We work diligently with our law enforcement partners to crack down on those who transport dangerous drugs into the Commonwealth for distribution,” Virginia Attorney General Herring said today. “We appreciate the hard work and dedication of our law enforcement partners and will continue to aggressively prosecute those who endanger the lives of our citizens.”
In a hearing last week in U.S. District Court in Abingdon, Christy Marie Doffermyer, 47, of Kingsport, Tenn., was sentenced, to 168 months in federal prison. Doffermyer previously pleaded guilty to one count of conspiring to possess with the intent to distribute and distributing 50 grams or more of methamphetamine, as well as heroin and oxycodone.
On February 15, 2019, Timothy Allen Barr, 51, of Coeburn, Va., was sentenced to 41 months in federal prison. Barr previously pleaded guilty to one count of conspiring to possess with the intent to distribute and distributing oxycodone.
In all, 11 individuals are charged as part of this drug trafficking conspiracy. Seven additional defendants have pled guilty and are scheduled for sentencing in the coming months.
According to court records and evidence presented at previous hearings by Special Assistant United States Attorney and Virginia Assistant Attorney General Suzanne Kerney-Quillen, these defendants conspired to traffic a variety of controlled substances, including methamphetamine, heroin, cocaine, morphine, oxycodone, and alprazolam, from sources in Watkinsville, Athens, and Augusta, Georgia, into Southwest Virginia for redistribution. The organization operated primarily in Lee and Wise counties from November 2016 through March 1, 2018. Arrests on March 1, 2018, resulted in the seizure of approximately 197 grams of crystal ice methamphetamine, in addition to heroin, cocaine, morphine, and oxycodone. Doffermyer admitted she was responsible for conspiring to distribute, possessing with the intent to distribute, and actually distributing 1,000 grams of crystal ice methamphetamine, as well as quantities of heroin and oxycodone. Barr admitted to distributing 900 dose units of 30 milligram oxycodone tablets, which he obtained and distributed during the course of this conspiracy.
The investigation of the case was conducted by the Southwest Virginia Drug Task Force, Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Lee County Sheriff’s Office, Scott County Sheriff’s Office, Wise County Sheriff’s Office, Norton Police Department, Big Stone Gap Police Department, and the U.S. Marshals also assisted with the execution of search warrants and arrests connected with this case. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
Traveling Nurse Who Worked in Roanoke Sentenced for Tampering with FentanylRead the Press Release
Abingdon, VIRGINIA – A traveling nurse, who tampered with vials of fentanyl and replaced the drug with saline, was sentenced last week in federal court to 42 months in prison, United States Attorney Thomas T. Cullen announced.
Joseph Howard, 34, of Ashland, Ky., previously pleaded guilty to one count of tampering with a consumer producer that affects interstate commerce, with reckless disregard for the risk that another person will be placed in danger of death or serious injury.
“Fentanyl and other powerful opioids are being abused at epidemic rates across the country,” U.S. Attorney Cullen stated today. “Hospitals, doctor’s offices, pharmacies, and manufacturers must do everything in their power to track and control every dose of these addictive and often-abused drugs to ensure they are being used in accordance with limited prescribed uses.”
“Patients deserve to have confidence that they are receiving the proper treatment from those entrusted with providing their medical care,” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. “As part of the FDA’s comprehensive work to address the opioid epidemic, the agency will continue to hold medical personnel accountable when they take advantage of their unique position and tamper with drugs needed by their patients, especially when such tampering could cause unnecessary pain and suffering.”
According to evidence presented at previous hearings by Assistant United States Attorney Randy Ramseyer, Howard worked as a traveling nurse in Roanoke between November 2017 and December 2017. During that time, the defendant tampered with vials of liquid fentanyl, extracted the fentanyl for his personal use and replaced it with saline. Howard caused the diluted vials to be available for use by patients at the hospital where he worked.
The investigation of the case was conducted by the Food and Drug Administration-OCI, the Virginia Department of Health Professions, and the Virginia State Police. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Three Men Charged with Armed Robbery Spree Spanning Multiple Counties in New JerseyRead the Press Release
NEWARK, N.J. – Three Union County, New Jersey, men have been charged with robbing liquor stores at gunpoint in November 2018, U.S. Attorney Craig Carpenito announced today.
Paul Jimenez, 29, Jaime Fontanez, 41, and Vincent Chan-Guillen, 28, of Elizabeth, New Jersey, are all charged by complaint with one count of conspiring to commit Hobbs Act robbery and one count of using and carrying a firearm during a crime of violence. Jimenez is also charged with five substantive counts of Hobbs Act robbery and Fontanez and Chan-Guillen are charged with four substantive counts of Hobbs Act robbery. Jimenez and Fontanez appeared before U.S. Magistrate Judge Steven C. Mannion in Newark federal court on Feb. 20, 2019, and were detained. Chan-Guillen is expected to make his initial appearance at a later date.
According to the documents filed in this case and statements made in court:
The FBI investigated a string of armed robberies of liquor stores that took place in Middlesex, Union and Essex counties beginning in November 2018. During each of the robberies, one of the defendants allegedly brandished a handgun at the store clerk while another defendant went behind the counter and stole money from the cash register.
During one of the robberies in Essex County, one of the robbers fired a shot as they ran from the store. No one was injured in that incident. That firearm was later found in Chan-Guillen’s possession on Nov. 30, 2018.
The Hobbs Act charges each carry a maximum potential penalty of 20 years in prison. The brandishing of a firearm during a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. The discharging of a firearm during a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of 10 years in prison, which must run consecutively to any other prison term. Each count also carries a potential $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the arrests. He also thanked the Elizabeth Police Department, under the direction of Chief John Brennan; the Rahway Police Department, under the direction of Chief John Rodger; the Woodbridge Police Department, under the direction of Director Robert Hubner; the Bloomfield Police Department, under the direction of Public Safety Director Samuel A. DeMaio; the Linden Police Department, under the direction of Chief David Hart; the Kenilworth Police Department, under the direction of Chief John Zimmerman; the Union Police Department Police Department, under the direction of Director Dan Zieser; and the N.J. State Police, under the direction of Col. Patrick J. Callahan for their work on this case.
The government is represented by Assistant U.S. Attorney Tracey Agnew and Special Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three Men Charged in Red Lake Heroin Trafficking Conspiracy Resulting in the Shooting Deaths of Two IndividualsRead the Press Release
United States Attorney Erica H. MacDonald today announced an indictment charging FRANKLIN JACKSON, a/k/a “Frankie,” 23, KRISTOPHER SULLIVAN, a/k/a “Blood Money,” 24, and BRYAN BOARDMAN, a/k/a “Boon,” 24, with conspiracy to distribute heroin. SULLIVAN and BOARDMAN were also charged with using and carrying a firearm during a drug trafficking crime.
According to the indictment, between October 1, 2018, and October 21, 2018, JACKSON, SULLIVAN, and BOARDMAN conspired with each other to distribute heroin on the Red Lake Indian Reservation. On October 21, 2018, the defendants’ drug trafficking activities resulted in the shooting deaths of two individuals, identified in the indictment as J.R. and R.B.
This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force and the Red Lake Tribal Police Department.
Assistant U.S. Attorneys Jeffrey S. Paulsen and Julie E. Allyn are prosecuting the case.
Defendant Information:
FRANKLIN JACKSON, a/k/a “Frankie,” 23
Unknown
Charges:
- Conspiracy to distribute heroin, 1 count
KRISTOPHER SULLIVAN, a/k/a “Blood Money,” 24
Minneapolis, Minn.
Charges:
- Conspiracy to distribute heroin, 1 count
- Using and carrying a firearm during a drug trafficking crime, 1 count
BRYAN BOARDMAN, a/k/a “Boon,” 24
Minneapolis, Minn.
Charges:
- Conspiracy to distribute heroin, 1 count
- Using and carrying a firearm during a drug trafficking crime, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three Indicted for Firearms Offenses in Sacramento and Solano CountyRead the Press Release
SACRAMENTO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime by focusing on firearms prosecutions, U.S. Attorney McGregor W. Scott announced that a federal grand jury returned indictments today in the following cases involving illegal firearms offenses.
Jedidiah Nathaniel Smith, 40, of Fairfield, is charged with being a felon in possession of a firearm. According to court documents, on December 5, 2018, police officers stopped a car with an expired registration that Smith was traveling in. After their initial contact with Smith, they learned that he was carrying a loaded revolver in his waistband. Smith cannot lawfully possess firearms or ammunition because he has previously been convicted of a felony offense. This case is the product of an investigation by the Suisun City Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
Jesus Aguilar Jr., 34, of Fairfield, is charged with being a felon in possession of a firearm. According to court documents, on November 19, 2018, police officers responded to emergency calls reporting that a man was trying to open motorists’ doors while the cars were stopped at an intersection. After the officers arrived on scene and tried to contact Aguilar, he discarded the handgun and was arrested moments later. Aguilar cannot lawfully possess firearms or ammunition because he has previously been convicted of a felony offense. This case is the product of an investigation by the Suisun City Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
Nassir Michaels, 39, of Reno, Nevada, is charged with one count of unlawful dealing in firearms and two counts of being a felon in possession of a firearm. According to court documents, between September 16, 2018, and October 12, 2108, Michaels engaged in the business of dealing in firearms without having an appropriate license. The firearms involved in the charged transactions included three assault rifles, one of which was capable of accepting a high-capacity magazine. Michaels is prohibited from lawfully possessing a firearm because he has previously been convicted of a felony offense. This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Federal Bureau of Investigation, Sacramento and Las Vegas Divisions, Sacramento Police Department, Sacramento County Sheriff's Department, California Department of Corrections and Rehabilitation's Special Services Unit (SSU) and the California Highway Patrol. Assistant U.S. Attorney Vincenza Rabenn is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty for the felon in possession of a firearm charge of 10 years in prison and a $250,000 fine. If convicted of the unlawful dealing in firearms charge, Michaels faces a maximum sentence of five 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Three Florida Residents Charged with Armed RobberyRead the Press Release
Three Florida residents have been arrested and charged with conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and brandishing a firearm in furtherance of a crime of violence.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Anthony Rosa, Chief, Sunrise Police Department, made the announcement.
Zyheem Ian Smith, of Orlando, Gedeon Joseph, of Clermont, and Watverly Mortimer, of West Park, were charged by indictment with offenses related to the December 24, 2018 armed robbery of the Yard House restaurant at the Sawgrass Mills Mall in Sunrise, Florida (Case No. 19-CR-60055-UNGARO). The defendants have been arrested and had their initial hearings. Mortimer was detained after a detention hearing on February 15, 2019, before U.S. Magistrate Judge Patrick M. Hunt in Ft. Lauderdale. Smith and Joseph are currently being detained, following a hearing before U.S. Magistrate Judge Thomas B. Smith in Orlando. They are awaiting transport to the Southern District of Florida for a subsequent hearing.
According to court records, including allegations contained in the complaint and indictment, Smith and Joseph entered the Yard House on the morning of December 24, 2018, before the restaurant had opened, through a back door that was opened by Mortimer, a Yard House employee. Smith and Joseph went upstairs to the manager’s office, pointed a Glock 19X handgun at the manager, and grabbed the manager’s cellphone. They threatened to shoot the manager if he did not empty the safe. Smith and Joseph left with approximately $22,000.
An indictment is only an accusation and every defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI and the Sunrise Police Department in this matter. This case is being prosecuted by Assistant U.S. Attorney Robert Juman.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tampa Man Indicted for Multiple Bank RobberiesRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Terrance Maurice Goss (32, Tampa) with four counts of bank robbery, two counts of attempted bank robbery, and one count of possessing a firearm as a convicted felon. Goss faces a maximum penalty of 20 years in federal prison on each of the robbery and attempted robbery charges, and up to 10 years’ imprisonment for the firearm offense. The indictment also notifies Goss that the United States intends to forfeit the $6,462 he stole from the banks, as well as the firearm he possessed.
According to the
indictment , between January 11 and January 25, 2019, Goss robbed four banks. On January 11, 2019, he robbed the Wells Fargo Bank located at 2699 Gulf to Bay Boulevard in Clearwater. He robbed a second Wells Fargo Bank, located at 5250 East Bay Drive in Clearwater, on January 15, 2019. Two days later, he robbed the Centennial Bank on Fruitville Road in Sarasota). On January 25, 2019, Goss robbed a Wells Fargo Bank in Davenport. Additionally, Goss attempted to rob the TD Bank located at 6108 U.S. Highway 98 North in Lakeland on January 17, 2019, and the SunTrust Bank located at 1075 Carpenters Way in Lakeland on January 25, 2019.Finally, the indictment charges that Goss, a previously convicted felon, possessed a firearm on January 25, 2019.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI, the Largo Police Department, the Clearwater Police Department, the Sarasota County Sheriff’s Office, the Polk County Sheriff’s Office, the Lakeland Police Department, the U.S. Marshals Service, and the Florida Highway Patrol. It will be prosecuted by Assistant United States Attorney Taylor G. Stout.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Syracuse Woman Sentenced for Scheme to Defraud Department of LaborRead the Press Release
UTICA, NEW YORK - Linda Sue Parnell, age 64, of Syracuse, New York, was sentenced today to 5 years of probation and to pay restitution to the federal government in the amount of $72,207.16, after previously pleading guilty to four counts of wire fraud for submitting fraudulent claims for mileage reimbursement between 2010 and 2016.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Sean J. Smith, U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Northeast Field Office.
An investigation revealed that Parnell, years after claiming to have sustained a back injury while working at a Veterans Affairs hospital, was approved to receive compensation benefits from the U.S Department of Labor relating to her claim. The Department of Labor authorized Parnell to obtain a reimbursable membership to the YMCA of Greater Syracuse and to seek reimbursement for miles driven to and from the YMCA for the purpose of exercising to strengthen her back. The Department of Labor also authorized Parnell to seek reimbursement for miles driven to and from covered medical appointments.
Parnell defrauded the Department of Labor by submitting reimbursement claims for trips that she did not actually make to the YMCA, and by significantly inflating the mileage for those trips she did take to the YMCA and also to covered medical appointments. Parnell claimed to have visited the YMCA more than 1,700 times between 2010 and 2016, though she actually visited the YMCA on approximately 50 occasions during this time. The investigation also established that Parnell claimed to visit the YMCA on holidays when it was closed and on days she was traveling out of state, including dozens of times over a several-month period during which she resided in Pennsylvania. From her fraud scheme, Parnell received $72,207.16 in reimbursement for mileage claims that were fraudulent.
United States District Judge David N. Hurd imposed Parnell’s sentence today in Utica.
This case was investigated by U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, and was prosecuted by Assistant U.S. Attorneys Michael F. Perry and Tamara Thomson.
Sweeny Man Convicted of Sex Trafficking of MinorsRead the Press Release
GALVESTON, Texas - A 33-year-old resident of Sweeny has admitted he employed sexually-oriented websites advertising three minors as young as 15 for commercial sex, announced U.S. Attorney Ryan K. Patrick.
Joseph Church pleaded guilty today on the first day trial was set to begin before U.S. District Judge George C. Hanks Jr.
The young girls were induced into posing for pictures used in online advertisements for sex and engaged in commercial sex acts for money. Church and others collected all of the money the girls earned. Church transported victims to commercial sex dates and used motels to harbor the minors. Cell phone applications were used to monitor the victims and post on-line advertisements featuring the minors. Church and his co-defendants were aware that the victims were under the age of 18 when they were caused to engage in commercial sex.
Church, the leader of the group, was the last of seven to plead guilty in this case.
Several others have pleaded guilty for their respective roles on the conspiracy, gun charges, and the posting of the commercial sex ads - Angela Marks, 25, of Sweeny; Jamaal Crane, 26, of Angleton; Norris Moon, 25, and Christopher Walton, 24, both of Brazoria; Alisa Kimbler, 26, of Freeport; and Eric Page, 20 of Sherman.
Church has been detained since his arrest and will remain in custody until his sentencing scheduled for May 15,2019.
Church faces at least 10 years and up to life in prison. Potentially, he could also be ordered to pay a $250,000 fine and serve at least five years and up to life on supervised release. He will be required to register as a sex offender.
The FBI and Texas Department of Public Safety conducted the investigation with assistance of sheriff’s offices in Brazoria and Galveston Counties and police departments in Galveston, Sherman, Wharton, La Marque and the University of Texas Medical Branch. Assistant U.S. Attorneys Sherri Zack and Sebastian Edwards prosecuted the case.
St. Peters Woman Pleads Guilty to $231,000 Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – A St. Peters, Mo., woman pleaded guilty in federal court today to a fraud scheme in which she received more than $231,000 in disability payments intended for her mother, who died nearly 50 years ago.
Marsha Gail Coy, 68, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to a federal information that charges her with one count of bank fraud.
Coy’s mother was an employee of the Kirkwood, Mo., R-VII School District until she retired with the Public School Retirement Systems of Missouri (PSRS) in 1968. PSRS is a non-Social Security contributory system that provides retirement, disability and survivor benefits. Although Coy’s mother died on Sept. 23, 1969, PSRS unwittingly continued to make disability benefit payments into her bank accounts. PSRS made 584 disability benefit payments totaling $382,933 before learning on May 1, 2018, that she had died. Coy’s father was placed in a long-term care facility in April 1996 and resided there until the last few days prior to his death in 1999.
By pleading guilty today, Coy admitted that she engaged in a fraud scheme from April 1996 to May 1, 2018, to steal from PSRS by obtaining benefits to which she was not entitled, and to use the money for her own benefit. Under the terms of today’s plea agreement, Coy must forfeit to the government $231,148, which is the amount of disability benefits paid by PSRS after April 1, 1996.
Under federal statutes, Coy is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI.
St. Louis Man Indicted on Additional Federal Charge of Drug Distribution Resulting in DeathRead the Press Release
St. Louis, MO –Antonio Adrian Minnis, Jr., 26, of St. Louis, MO, was charged today in a superseding indictment with felony charges of being a felon in possession of a firearm and distributing a controlled substance which resulted in the death of another. Minnis was originally charged with the federal gun crime in January 2019. Today’s superseding indictment added the federal drug charge.
According to the superseding indictment and court documents, Minnis was responsible for distributing fentanyl that caused the death of another individual on or about July 18, 2018. Then, on September 16, 2018, Minnis possessed a Glock 19 nine-millimeter semi-automatic pistol despite the fact that Minnis had been previously convicted of a felony crime.
Following the return of today’s indictment, United States Attorney Jeff Jensen commended law enforcement’s continued investigation into Minnis’ criminal activity. “Today’s charge is another example of this Office’s commitment to combating the opioid epidemic that is taking far too many lives far too often. Just because a person is indicted does not mean that the investigation stops. That was certainly the case here.”
If convicted, the charge of felon in possession of a firearm carries a maximum penalty of 10 years in prison and a $250,000 fine. The drug distribution charge carries a term of imprisonment of not less than 20 years and not more than life with a fine of not more than $1 million dollars or both. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Saint Louis County Police Department.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Sons of Joaquin Guzman Loera Aka “El Chapo” Charged with Drug TraffickingRead the Press Release
An indictment against Joaquin Guzman Lopez and Ovidio Guzman Lopez, charging them with a conspiracy to distribute cocaine, methamphetamine, and marijuana for importation into the United States was unsealed last week. The Guzman Lopez brothers, believed to currently reside in Mexico, are the sons of Joaquin Guzman Loera, aka “El Chapo,” who was convicted by a jury in the Eastern District of New York for his role as the leader of the Sinaloa Cartel.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Scott Brown of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Arizona Field Office made the announcement.
Joaquin Guzman Lopez, 34, and Ovidio Guzman Lopez, 28, are charged in a one-count indictment alleging that from in or around April 2008, through April 2018, they conspired to distribute cocaine, methamphetamine, and marijuana from Mexico and elsewhere for importation into the United States. This case is assigned to U.S. District Judge Rudolph Contreras.
The case was investigated by HSI. This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state, and local enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle, and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorneys Anthony Aminoff and Anthony Nardozzi of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) are prosecuting the case.
Sex Trafficking Ring Leader SentencedRead 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 Feng Yang Chen, 43, of Flushing, NY, who was convicted of conspiracy to violate the Mann Act and the Travel Act related to the operation of an interstate prostitution business and using the internet to promote prostitution, was sentenced to serve 57 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated that between March 2011 and March 2016, Chen operated a multi-state prostitution organization. The defendant was the leader of the organization – she told the victim sex workers how much to charge, what sex acts to provide, and where they had to work. Chen actively advertised the women on Backpage.com and operated a call center from her home in Flushing, Queens that scheduled meetings between prostitutes and their clients. The Government identified more than 6,000 Backpage advertisements that led to encounters with prostitutes in multiple states including New York, Connecticut, Illinois, Indiana, Kentucky, Massachusetts, Michigan, North Carolina, Ohio, Pennsylvania, South Carolina, and Texas. Some of the commercial sex acts took place in Tonawanda, NY and Henrietta, NY.
The defendant, who worked with co-defendants Chengqi Li and LiangLiang Guo, victimized at least 12 individuals who traveled state to state to engage in prostitution in various hotels. Chen recruited the victim women in China and used threats of violence and deportation against the victims and their families to force participation. One victim indicated that the defendant forced her to have commercial sex with rapists and made her work while she was menstruating and ill. After another victim was badly assaulted by a client, Chen forced the victim to return to work immediately, showing no compassion for her physical and emotional injuries.
“The conduct by the defendant amounted to treating her sex workers as modern day slaves,” noted U.S. Attorney Kennedy. “She had the victims sell their bodies—robbing them of their dignity—in order that she might enrich herself. Such heinous behavior bought Chen the one thing she truly earned—a significant prison sentence.”
“Many people are unaware that human trafficking occurs and this tragic crime usually goes unnoticed in the United States,” said HSI Special Agent-in-Charge Kevin Kelly. “While we can't erase the suffering these women experienced, we can aggressively investigate and prosecute those responsible. HSI and our partners will continue to send a powerful warning that consequences await those engaged in these heinous acts.”
The defendant made more than $2,000,000 each year from the prostitution business. The Court has ordered the forfeiture of approximately $450,000 in proceeds from the illegal prostitution activities; proceeds from the sale of two properties located in Flushing, NY; a 2012 Porsche Cayenne; as well as multiple cellular telephones, computers, and iPads utilized during the prostitution conspiracy. In addition, Chen was ordered to pay the victims more than $290,000 in restitution.
At sentencing, the Court noted the serious nature of the offense and the defendant’s financial motivation. The Court also noted that other individuals who worked for Chen were prosecuted and are currently in jail. Defendants Li and Guo were previously convicted, Li was sentenced to serve 21 months in prison, and Guo was sentenced to serve six months in prison.
Today’s sentencing is the result of an investigation by the U.S. Department of Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Tonawanda Police Department, under the direction of Chief Jerome C. Uschold III; the New York Police Department, under the direction of Chief James P. O’Neill; the South Portland, Maine Police Department, under the direction of Chief Edward Googins; and the Fairview Township Police Department, under the direction of Chief Jason C. Loper.
Seven Defendants Sentenced to over 39 Years Combined for Methamphetamine Trafficking in Fort Smith, Arkansas AreaRead the Press Release
Fort Smith, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas announced today that seven individuals were sentenced by the United States District Court for their roles in a methamphetamine trafficking ring, which operated in the Fort Smith, Arkansas area. The Honorable P.K. Holmes, III presided over the sentencing hearings in the United States District Court in Fort Smith.
According to court records, on June 5, 2018, a federal grand jury returned a sixteen (16) count Indictment against eight (8) individuals in the Fort Smith, Arkansas area for activities in a large-scale drug trafficking conspiracy. This drug trafficking ring was responsible for the distribution of multiple kilograms of methamphetamine dating back as far as early 2015.
Defendants in this conspiracy received the following sentences:
Brian Christopher Jones, age 38, of Fort Smith, Arkansas was sentenced yesterday to 240 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Jones was indicted in the Western District of Arkansas in June 2018 and plead guilty in August 2018.
Tina Renee Branson, age 53, of Winslow, Arkansas was sentenced yesterday to 24 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Branson was indicted in the Western District of Arkansas in June 2018 and plead guilty in August 2018.
Christopher Mitchell Harbour, age 42, of Fort Smith, Arkansas was sentenced yesterday to 46 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Harbour was indicted in the Western District of Arkansas in June 2018 and plead guilty in October 2018.
Amber Dawn Boursh, age 37, of Mountainburg, Arkansas was sentenced today to 24 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Boursh was indicted in the Western District of Arkansas in June 2018 and plead guilty in August 2018.
Belinda Marvelle McBay, age 47, of Fort Smith, Arkansas was sentenced today to 51 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. McBay was indicted in the Western District of Arkansas in June 2018 and plead guilty in October 2018.
April Jo Thompson, age 35, of Camden, Arkansas was sentenced today to 41 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Thompson was indicted in the Western District of Arkansas in June 2018 and plead guilty in October 2018.
Jimmy Franklin Fore, age 57, of Paris, Arkansas was sentenced today to 51 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine and Felon in Possession of a Firearm to run concurrently. Fore was indicted in the Western District of Arkansas in June 2018 and plead guilty in July 2018.
An eighth co-defendant on the same Indictment, Dylan Dempsey, entered a plea of guilty to one (1) count of Conspiracy to Distribute Methamphetamine on February 20, 2019 and will be sentenced at a later date.
This case was investigated by the Drug Enforcement Administration, the 12th Judicial Drug Task Force, the 21st Judicial Drug Task Force, the Crawford County Sheriff’s Office, the Sebastian County Sheriff’s Office, the Fort Smith Police Department, the Van Buren Police Department and the Arkansas National Guard Counter Drug. Assistant United States Attorney’s Candace Taylor and Aaron Jennen is prosecuting the case for the Western District of Arkansas.
Settlement with City of Holyoke Will Address Pollution in Connecticut RiverRead the Press Release
BOSTON – The City of Holyoke has entered into a proposed consent decree with federal and state enforcement authorities agreeing to take critical remedial action to prevent future sewage discharges into the Connecticut River from the City’s sewer collection system.
The consent decree, filed today in federal court, is the result of an enforcement action brought by the Department of Justice, on behalf of the U.S. Environmental Protection Agency (EPA), and the Massachusetts Attorney General’s Office, on behalf of the Massachusetts Department of Environmental Protection (MassDEP). According to complaints filed with the consent decree, Holyoke allegedly discharged pollutants into the Connecticut River in violation of its wastewater permits intended to limit combined sewer overflow (CSO) discharges to the Connecticut River from the City’s collection system and failed to properly operate and maintain its sewer system.
“By entering into this consent decree, Holyoke will take important and necessary steps to prevent pollutants from entering the Connecticut River,” said United States Attorney Andrew E. Lelling. “This resolution will result in cleaner discharges from the City’s sewer system and a healthier environment for area communities.”
“This settlement will help us ensure that our businesses and families along the Connecticut River have access to clean and safe water,” Massachusetts Attorney General Maura Healey said. “We will continue to work with our partners to protect public health, our natural resources, and our economy.”
“This settlement is progress towards a cleaner Connecticut River and puts Holyoke on a path to improving its water infrastructure in a way that will substantially reduce pollution,” said EPA New England Acting Regional Administrator Deb Szaro. “EPA is committed to working with cities like Holyoke to find practical and cost-effective ways to improve infrastructure and to advance the healthy and clean iconic waterways that make New England so special.”
“The Long-term Control Plan to address CSOs is a significant step toward a cleaner Connecticut River,” said MassDEP Commissioner Martin Suuberg. “Upon submittal of Holyoke’s Long-term Control Plan, all Massachusetts communities discharging to the Connecticut River have either completely eliminated their combined sewer overflow (CSO) discharges or are subject to a final Long-term Control Plan to address the remaining CSOs.”
In addition to a wastewater treatment facility, Holyoke owns and operates a sewer collection system that services approximately 70 percent of the City, two-thirds of which carries both sewage and stormwater. Most of the time, the combined system transport all wastewater to the facility for treatment. However, during periods of heavy rain the wastewater volume can exceed the capacity of the sewer system or the treatment facility and the excess wastewater will discharge to the Connecticut River without treatment. CSO discharges contain raw sewage and are a major water pollution concern.
The complaints allege that from at least 2012, Holyoke discharged untreated pollutants from its sewer system in violation of its permits and both the federal Clean Water Act and the state Clean Waters Act. In 2015, for example, the City reported discharging 133 million gallons of untreated effluent during wet weather, and during a 2012 inspection, EPA identified 40 potential overflows in dry weather. The complaints also allege that the City periodically discharges sewage and other pollutants into the Connecticut River outside its sewer system, such as through manholes that flow to storm drains.
The proposed consent decree requires Holyoke to develop an enforceable, long-term plan to control discharges from the City’s sewer system by Dec. 31, 2019. Holyoke has already begun work on developing this plan and has submitted a scope of work, which EPA and MassDEP have approved. While the City had taken steps over the years to address its unlawful sewer discharges pursuant to a number of EPA-issued administrative orders, it remained in noncompliance with its permits and both the federal Clean Water Act and the state Clean Waters Act. Once the City submits the plan, the consent decree calls for the parties to negotiate what further steps the City must take regarding the discharges.
The consent decree does not assess a civil penalty against the City for its violations at this time. Holyoke, however, is subject to vigorous reporting requirements to ensure compliance with the terms of the consent decree. If the City fails to comply, it may be subject to penalties as high as $2,500 per each day of violation.
This settlement is part of EPA’s National Compliance Initiative to keep raw sewage and contaminated stormwater out of our nation’s waters. Raw sewage overflows and inadequately controlled stormwater discharges from municipal sewer systems introduce a variety of harmful pollutants, including disease causing organisms, metals and nutrients that threaten our communities’ water quality and can contribute to disease outbreaks, beach and shellfish bed closings, flooding, stream scouring, fishing advisories and basement backups of sewage. Read more about the initiative at: https://www.epa.gov/enforcement/national-compliance-initiative-keeping-raw-sewage-and-contaminated-stormwater-out-our.
The proposed consent decree is subject to a 30-day public comment period and approval by the federal court. Once it is published in the Federal Register, a copy of the consent decree will be available on the Justice Department website at https://www.justice.gov/enrd/consent-decrees.
U.S. Attorney Lelling, Massachusetts Attorney General Healey, Acting EPA Regional Administrator Czaro, and MassDEP Commissioner Suuberg made the announcement today. The case is being handled by Assistant U.S. Attorney Brian M. LaMacchia of Lelling’s Civil Division and Assistant Attorney General I. Andrew Goldberg of Healey’s Environmental Protection Division.
San Antonio Area Pharmaceutical Sales Representative Pleads Guilty for Her Role in $8 Million Health Care Fraud SchemeRead the Press Release
In San Antonio this morning, 45-year-old former pharmaceutical representative Holly Blakely, of San Antonio, TX, pleaded guilty for her role in an $8 million health care fraud scheme that netted her over $1 million, announced U.S. Attorney John Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before Senior U.S. District Judge Fred Biery, Blakely pleaded guilty to one conspiracy to commit wire fraud, health care fraud, bribery, and paying kickbacks. Blakely faces up to five years in federal prison. She remains on bond pending sentencing scheduled for June 13, 2019, in San Antonio. Blakely was charged in a thirty-count indictment and had been scheduled to begin trial February 25, 2019.
As part of her plea, Blakely admitted her role in a scheme to defraud health care benefit programs by paying over $400,000 in kickbacks and bribes to health care providers that prescribed compounded medications to individuals who did not need the medications. Blakely and her co-conspirators attempted to disguise the kickbacks and bribes to health care professionals by writing fictitious and back-dated “consulting agreements.” In many instances, Blakely and her co-conspirators submitted prescriptions to compounding pharmacies for patients that had never seen a medical professional. Moreover, Blakely and her co-conspirators would occasionally forge the signature of a medical professional on prescriptions. Blakely admitted that she conspired with two compounding pharmacies that would submit claims for reimbursement to health care benefit programs, including TRICARE, for compounded medications based on the prescriptions. In exchange for her role in the conspiracy, the two compounding pharmacies paid Blakely approximately $1,147,885.14. From approximately February 2013 through December 2014, health care benefit programs reimbursed the two compounding pharmacies approximately $8,846,972.24 based on the claims submitted in connection with the compounded medications.
The FBI, together with the Defense Criminal Investigative Service, Drug Enforcement Administration--Diversion, U.S. Air Force Office of Special Investigations, U.S. Army Criminal Investigation Command, Texas Department of Public Safety, and the Office of Personnel Management—Office of Inspector General, investigated this case. Assistant United States Attorneys Sean Bryan O’Connell and Antonio Franco, Jr., are prosecuting this case on behalf of the Government.
Rosebud Man Indicted for Assault and Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assault by Strangulation and Suffocation, Domestic Assault by an Habitual Offender, and Failure to Register as a Sex Offender.
Michael Yellow Eyes, age 36, was indicted on the Assault charges on October 16, 2018, and the Failure to Register charges on December 11, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 20, 2019, and pled not guilty to both Indictments.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Yellow Eyes was convicted of Abusive Sexual Contact in April 2017. As a result of this conviction, he is required to register as a sex offender. It is alleged that between August 1, 2018, and August 29, 2018, Yellow Eyes, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The Indictment charging Yellow Eyes for Assault by Strangulation and Suffocation and Domestic Assault by an Habitual Offender alleges that on September 20, 2018, Yellow Eyes unlawfully committed a domestic assault upon his spouse and intimate partner and that, at the time of the domestic assault, Yellow Eyes had at least two prior convictions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse or intimate partner. The Indictment further alleges that Yellow Eyes assaulted his spouse and intimate partner by strangulation and suffocation.
The charges are merely accusations and Yellow Eyes is presumed innocent until and unless proven guilty.
The investigations are being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the cases.
Yellow Eyes was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been scheduled for April 16, 2019.
Queens Man Sentenced to 15 Years’ Imprisonment for Producing Child PornographyRead the Press Release
Earlier today, in federal court in Brooklyn, Keith Liwanag was sentenced to 15 years’ imprisonment by United States District Judge Jack B. Weinstein following the defendant’s guilty plea in June 2018 to sexual exploitation of a child. Upon completion of his sentence, Liwanag must register as a sex offender.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York, announced the sentence.
“This is a just sentence for a defendant who used technology to victimize vulnerable children half a world away,” stated United States Attorney Donoghue. “Protecting children from sexual exploitation will always be a priority of this Office.” Mr. Donoghue extended his grateful appreciation to INTERPOL’s Crimes Against Children Unit for its investigative work and assistance during the investigation.
“Liwanag paid others to victimize children for his own pleasure,” stated HSI Special Agent-in-Charge Melendez. “His use of women in the Philippines to exploit children for the production of child pornography is not just criminal, it’s evil. Because of the great work of law enforcement and the prosecutor’s office, he will now serve 15 years for his unfathomable acts, facing the full justice of his actions behind bars.”
Between September 2016 and October 2016, Liwanag used a Facebook account to direct women in the Philippines to engage in sexual acts with children in exchange for money, and to produce and send child pornography to him over Facebook’s private messaging service. During the government’s investigation, law enforcement seized over 50 recorded video conferences between Liwanag and women engaged in the sexual abuse of children over Facebook and Skype. The investigation revealed that Liwanag shared the videos he created online.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being prosecuted by Assistant United States Attorneys Tanya Hajjar and Erin Reid.
The Defendant:
KEITH LIWANAG
Age: 27
Queens, New YorkProject Parkersburg Update: Two Parkersburg Residents Plead Guilty to Federal Methamphetamine ChargesRead the Press Release
CHARLESTON, W.Va. – Two Parkersburg residents arrested as part of Project Parkersburg – a major takedown and dismantling of a multi-state drug trafficking organization (DTO) responsible for distributing methamphetamine and heroin -- pled guilty to conspiracy to distribute 50 grams or more of methamphetamine, announced United States Attorney Mike Stuart. Amy Rake, 38, and Edward Marks, 32, entered guilty pleas before United States District Judge Irene C. Berger. Stuart commended the investigative efforts of the FBI, the Parkersburg Police Department, the Dayton Ohio Police Department, and the Parkersburg Narcotics and Violent Crime Task Force. The long-term, joint investigation resulted in at least 29 individuals being charged in federal and state court, the seizure of 150 pounds of methamphetamine and 4 pounds of heroin.
“The Project Parkersburg takedown was the largest meth bust in the history of not only West Virginia but also Ohio,” said United States Attorney Mike Stuart. “Project Parkersburg was only the start of our efforts to remove drug dealers like Rake and Marks from the streets of Parkersburg and the surrounding area. Not only did our efforts rid the community of more than two dozen drug dealers, it prevented hundreds of pounds of methamphetamine and heroin from poisoning our families and our kids.”
Rake and Marks admitted that they had been part of a methamphetamine distribution ring operating in and around Parkersburg from at least February 2018 until they were arrested on September 20, 2018. The investigation identified Rakes and Marks as street level dealers supplied by local distributors being supplied by sources in Phoenix, Arizona. Both defendants admitted receiving methamphetamine in multiple ounce quantities at a time and selling it to local users and dealers.
Rakes and Marks were charged with 15 other defendants in a two-count federal indictment in October 2018. They each face 5 years to 40 years in federal prison when they are sentenced. Rake is scheduled to be sentenced on June 12, 2019, and Marks will be sentenced on June 26, 2019.
Assistant United States Attorney Joshua C. Hanks is responsible for the prosecution.
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Ponder, Texas Man Pleads Guilty to Transportation of Stolen Vehicle, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that David Leon Smith II, age 28, of Ponder, Texas, entered a guilty plea to Transportation Of Stolen Vehicle, in violation of Title 18, United States Code, Sections 2312 and 2, punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both; and to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 2, punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that on or about November 26, 2017, within the Eastern District of Oklahoma, the defendant, did unlawfully transport and cause to be transported in interstate commerce a stolen motor vehicle, that is a 2001 Dodge Ram pickup truck, VIN ending in 520331, from the State of Oklahoma to the State of Texas, knowing the same to be stolen.
The Indictment further alleges that on or about November 26, 2017, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to wit: One (1) Beretta Model A300 Outlander 12 gauge shotgun, serial number RU004247, and One (1) Remington Model Seven .22-250 caliber rifle, serial number 7857999, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Texas Department of Public Safety, the Oklahoma Department of Agriculture, and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
First Assistant United States Attorney Christopher Wilson represented the United States.
Police Officer Pleads Guilty to Robbing Two San Francisco BanksRead the Press Release
SAN FRANCISCO – San Francisco police officer Rain Olson Daugherty pleaded guilty today to robbing two San Francisco banks, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The guilty plea was accepted by the Honorable William H. Orrick, United States District Judge.
According to the plea agreement, on November 29, 2018, Daugherty, 44, of San Francisco, entered a bank in the Sunset District of San Francisco and slid a note containing a demand for money across the counter. The teller gave Daugherty cash from her drawer. Then, two weeks later, on December 13, 2018, Daugherty robbed a bank on Clement Street in San Francisco. Again, he approached a bank teller and slid a note containing a demand for money across the counter. Again, the teller gave Daugherty cash from the drawer.
A federal grand jury indicted Daugherty on January 10, 2019, charging him with the above two bank robberies - two counts for each robbery, all in a violation of 18 U.S.C. § 2113(a). Pursuant to today’s plea agreement, Daugherty pleaded guilty to two counts of 18 U.S.C. § 2113(a), one for each bank robbery. If Daugherty complies with the plea agreement, the remaining two counts will be dismissed at sentencing.
Daugherty remains in custody pending sentencing. Judge Orrick scheduled Daugherty’s sentencing hearing for May 9, 2019. Daugherty faces a maximum statutory penalty of 20 years in prison for each count. Further, additional fines, forfeitures, restitution, and special assessments also may be imposed. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Ajay Krishnamurthy with the assistance of Kimberly Richardson. The prosecution is the result of an investigation by the FBI with assistance from the San Francisco Police Department.
Pascagoula Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
Gulfport, Miss. – Clynn Partee, 46, of Pascagoula, Mississippi, was sentenced today by U.S. District Judge Louis Guirola, Jr. to a term of 21 months in federal prison, followed by 5 years of supervised release for failure to register as a sex offender, announced U.S. Attorney Mike Hurst. Partee was also ordered to pay a $2,100 fine. He entered a guilty plea to the charge on November 28, 2018 before Judge Guirola.
In 2006, Partee was convicted in the Circuit Court of Cook County, Illinois, of Predatory Criminal Sexual Assault against a 12-year old female victim. He was sentenced to eight years with the Illinois Department of Corrections and deemed a Tier III Sex Offender with a lifetime registration requirement. After he was released from custody in Illinois, Partee moved to Mississippi in 2015. He did not register as required when he departed Illinois, and he did not register within the required time of his arrival in Mississippi.
In September 2018, Pascagoula Police officers responded to a disturbance call at a hotel in Pascagoula and encountered Partee. While Partee was not arrested during that encounter, a National Criminal Information Center database check was conducted regarding him. It was brought to the attention of the Jackson County Sheriff’s Office that Partee was a convicted sex offender and that he had been listed as a non-compliant sex offender in Illinois. The Sheriff's Office contacted the U.S. Marshals Service, which conducted further investigation.
The Marshals Service learned that Partee had never registered as a sex offender in the State of Mississippi and the State of Mississippi had not received a notification from the State of Illinois indicating the Defendant’s intent to relocate to Mississippi. The Marshals Service investigation concluded that Partee’s current residence was at a hotel in Pascagoula that also routinely houses a wide variety of people including children. Partee was arrested by local law enforcement officials as a non-compliant sex offender in September 2018 and subsequent to his federal indictment, Partee was arrested by the U.S. Marshal’s Service in October 2018.
In failing to register as a sex offender when he moved from Illinois to Mississippi, Partee knowingly and willfully violated the Sex Offender Registration and Notification Act, also known as the Adam Walsh Act.
This case was investigated by the U.S. Marshals Service, law enforcement officials in the State of Illinois, the Mississippi Department of Public Safety, the Jackson County Sheriff’s Office, and the Pascagoula Police Department. It was prosecuted by Assistant U.S. Attorney Stan Harris.
Pain Clinic Owner Sentenced for Illegally Dispensing Schedule II and Schedule III Controlled SubstancesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announces that KENNETH KNIGHT, age 69, was sentenced today pursuant to his plea of guilty to a one count bill of information charging him with conspiring with others to dispense quantities of Schedule II and Schedule III drug controlled substances outside the scope of professional practice and not for legitimate medical purposes.
KNIGHT admitted in a factual basis that he owned and operated the Axcess Medical Clinic in New Orleans. He acknowledged that during the operation of the clinic, he directed a physician Dr. Barbara Bruce, to write prescriptions that were provided to patients without conducting medical examinations of the patients. KNIGHT split 50 percent of the profits received with co-conspirator Dr. Bruce through her medical practice.
KNIGHT was sentenced to 60 months incarceration, a period of supervised release of at least 3 years, and a $15,000.00 fine. The Honorable Barry W. Ashe sentenced the defendant.
The case was investigated by the Drug Enforcement Administration New Orleans Field Office Tactical Diversion Squad Task Force consisting of Harahan Police Department, Jefferson Parish Sheriff’s Office, St. Bernard Parish Sheriff’s Office, New Orleans Police Department, Westwego Police Department, Louisiana State Police, New Orleans District Attorney’s Office, and the Internal Revenue Service, Gulfport, Mississippi.
This case was prosecuted by Assistant U.S. Attorneys John F. Murphy and Bill McSherry.
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One of the Largest Fentanyl Distributors in Wilmington Gets 17 Years in Federal PrisonRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge Terrence W. Boyle sentenced SHAWQI GRAY, 37, of Wilmington to 204 months imprisonment, followed by 5 years of supervised release.
On November 6, 2018, GRAY plead guilty to possession with the intent to distribute 100 grams or more of heroin and a quantity of fentanyl and possession of a firearm in furtherance of drug trafficking crime.
On November 30, 2017, the New Hanovery County Sheriff’s Office conducted a search of GRAY’s residence and a storage container on the property. Law enforcement found the following items: more than 150 grams of a mixture of heroin and fentanyl, more than 150 grams of a mixture of heroin and ketamine, 5 handguns (two 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 a mixture of heroin and fentanyl from July until November 2017.
On August 4, 2016, the Easton, Pennsylvania Police searched GRAY’S residence. Gray was not present. Law enforcement found 20 grams of heroin, 68 grams of crack cocaine and more than $19,000 in cash.
This case is part of an FBI lead OCDETF operation “Tooth Fairy”. This is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). This investigation is focused on the distribution of heroin from New Jersey to New Hanover, Brunswick, Bladen, Duplin, and Sampson Counties and associated gang activities.
This case is also part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Federal Bureau of Investigation Coastal Carolina Criminal Enterprise Task Force, The Bureau of Alcohol, Tobacco, Firearms, & Explosives, New Hanover County Sheriff’s Office and the Easton, Pennsylvania Police Department. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the government.
Omaha Man Convicted of Receiving Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Mark Ringland, age 53, was convicted Wednesday of receiving child pornography after a two-day jury trial in federal court. The Honorable Laurie Smith Camp was the presiding judge.
Agents with the Federal Bureau of Investigation’s Child Exploitation Task Force received information in the spring of 2017, from the National Center for Missing and Exploited Children, that a specific email address was receiving child pornography. The investigators were able to determine that it was Ringland’s email. He was contacted on September 1, 2017, and had a cell phone and iPad in his possession. The investigators seized both devices for which they had an authorized search warrant. Searches were done and investigators located more than 900 images of what they believed to be child pornography between the two devices. It was determined that at least one of the images was received by Ringland between April 1, 2017 and September 1, 2017.
Ringland faces not less than five years’ nor more than 20 years’ imprisonment, a $250,000 fine, and when released from prison, a term of at least five years to life of supervised release. Sentencing has been set for June 3, 2019.
Ohio Man Sentenced to 140 Months for Distributing MethamphetamineRead the Press Release
COVINGTON, Ky. — John Lee McCloud, 29, of Fairfield, Ohio, was sentenced today, by United States District Judge David Bunning, to 140 months in federal prison, for trafficking in methamphetamine.
McCloud was indicted in June 2018, and pled guilty in November 2018. According to court documents, McCloud was arrested in Florence, Kentucky, when he attempted to sell approximately five ounces of methamphetamine.
Under federal law, McCloud must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for a term of five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration; and Tom Grau, Chief of the Florence Police Department, jointly made the announcement.
The investigation was conducted by the DEA and the Florence Police Department. The United States was represented by Assistant United States Attorney Tony Bracke.
Nine Real Estate Investors Sentenced for Rigging Bids at Mississippi Public Foreclosure AuctionsRead the Press Release
WASHINGTON – Nine real estate investors have been sentenced for their role in a conspiracy to rig bids, in violation of the U.S. antitrust laws, at public real estate foreclosure auctions in Southern Mississippi, the Department of Justice announced.
Today, Christopher Vaughan and Jon Gregg Goodhart Jr. were each sentenced to serve four months in prison, with Vaughan receiving a fine of $20,000. Both defendants were ordered to pay restitution. Separately, but as a result of the same investigation, Jason Boykin, Shannon Boykin, Kimberly Foster, Kevin Moore, Chad Nichols, Ivan Spinner, and Terry Tolar were each sentenced to a term of four months in prison on Jan. 17, 2019, and were ordered to pay fines ranging from $20,000 to $48,000 and restitution to victims of their crimes.
At various times between 2009 and 2017, according to court documents, these defendants and others conspired not to bid against each other for properties sold at public real estate foreclosure auctions. Instead, they designated a winning bidder for the property and made and received payoffs in exchange for their agreement not to bid. When properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with any remaining proceeds paid to the homeowner. These conspirators paid and received money in connection with their agreement to suppress competition, which artificially lowered the price paid at auction for such homes.
“Those who subvert the competitive process will be held accountable and violations of the nation’s antitrust laws will be taken seriously,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Division has prosecuted more than 100 individuals across the country for bid rigging at real estate foreclosure auctions, and we will continue our efforts to prosecute and deter this conduct.”
“These types of crimes affect all Americans, because when individuals rig bids at auction, it ultimately damages our economy and hurts individuals,” said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. “We want to send a clear message to those participating in this type of corruption: the FBI and Department of Justice will investigate and prosecute anyone betraying the trust of our country’s economic foundation.”
“There is a simple lesson from these cases – if you rig bids, you will be caught and you will be punished. These are not victimless crimes, as we all suffer when people violate our antitrust laws. I want to thank the FBI and the Antitrust Division for rooting out this corruption in our foreclosure auctions here in Mississippi. We will remain vigilant against these and other types of crimes as we move forward in protecting the public,” said United States Attorney Mike Hurst for the Southern District of Mississippi.
The sentences announced today resulted from an ongoing investigation being conducted by the Antitrust Division’s Washington Criminal II Section and the FBI’s Gulfport Resident Agency, with the assistance of the U.S. Attorney’s Office for the Southern District of Mississippi. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division prosecutors in the Washington Criminal II Section at 202-598-4000, or visit https://www.justice.gov/atr/report-violations.