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29 March 2019
United States Attorney’s Office Marks Women’s History Month by Honoring the First and Post Recent Female Assistant United States Attorneys in the DistrictRead the Press Release
HARRISBURG – As we close Women’s History Month, United States Attorney David J. Freed and the United States Attorney’s Office for the Middle District of Pennsylvania honor the outstanding service and contributions of our female Assistant United States Attorneys.
Hired in 1979, Barbara Kosik Whitaker was the first female AUSA in the Middle District. The daughter of District Judge Edwin M. Kosik, Barbara graduated from Juniata College and the Dickinson School of Law. Barbara served the office faithfully until losing a hard-fought battle against breast cancer in 2011.
U.S. Attorney Freed also recognizes Sally A. Lied as our second female AUSA in the Middle District. Ms. Lied began her extensive career by serving on the Indiana staff of Robert F. Kennedy's presidential campaign in 1968. She then entered the Indiana University School of Law and obtained her JD in 1974. In 1975, Ms. Lied was the Assistant Deputy Secretary of Education for Pennsylvania, the first woman to hold that position. She was later promoted in 1978 to Deputy Attorney General. Ms. Lied joined the office in 1982, and served 20 years, retiring from federal service in 2000.
Sally A. Lied (left) and Barbara Kosik Whitaker (right) with colleagues.
As of March 2019, there are nine female AUSAs serving in the U.S. Attorney’s Office for the Middle District of Pennsylvania. In the past few years, the Middle District welcomed five new and exceptional women lawyers to the office:
- A National Association of Women Lawyers Recognition Award recipient, Tamara Haken, joined the office last Fall following her established career as an Assistant Enforcement Counsel for the Pennsylvania Gaming Control Board, a legal advisor for CURE International, Inc. and as an Adjunct Professor in the Business Law Department for Harrisburg Area Community College;
- Joanne Hoffman began her federal career almost 11 years ago in our office as a Paralegal Specialist. Ms. Hoffman attended Widener Law School’s evening degree program and was promoted in November 2018 to AUSA. Ms. Hoffman handles criminal prosecution of illegal reentry and defense of civil immigration detention cases;
- A University of Pennsylvania graduate, Alisan Martin served as an Assistant District Attorney in Philadelphia prosecuting drug crimes and violent felonies before returning to her hometown of Williamsport to serve as an AUSA in 2017;
- An alum of Rutgers University, Shana Priore began her career clerking for the Honorable Alexander H. Carver, III of the Superior Court of New Jersey. Ms. Priore then served as a Deputy Attorney General in New Jersey before joining our office in 2017;
- Jenny Roberts, a graduate of Villanova School of law, joined the office in 2016 after a 12-year career as an Assistant District Attorney in Blair and Luzerne Counties. Ms. Roberts serves as the Coordinator of the Financial Unit and the Asset Forfeiture Unit.
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United States Attorney’s Office Celebrates the Achievements of Judge Mary Anne RicheyRead the Press Release
In honor of Women’s History Month in March, the United States Attorney’s Office spotlights the achievements of Judge Mary Anne (Reimann) Richey, a true woman of firsts.
Judge Richey received her Bachelor of Laws from the University of Arizona College of Law in 1951. She paid for law school by operating a local ranch and raising thoroughbred racehorses. Judge Richey was the only woman in her graduating class, and the only woman to pass the Arizona bar examination that year. Three years later, she became the first woman Assistant United States Attorney (AUSA) for the District of Arizona.
In 1960, Judge Richey became the first woman United States Attorney for the District of Arizona. She was appointed as a judge to the Pima County Superior Court in 1964, and served as the Court’s presiding judge from 1972 to 1976. In 1976, President Gerald Ford nominated Judge Richey to a seat on the United States District Court for the District of Arizona, as the only woman to receive a nomination during the Ford Administration. Judge Richey remained on the federal bench until her death in 1983.
Judge Richey’s achievements went far beyond the law. She grew up with aspirations of taking to the sky, and joined the Women’s Airforce Services Program (WASP) in 1943 as a test pilot to honor her brother, a Navy pilot killed earlier in the war. Throughout her life, Judge Richey was deeply committed to civic engagement and a champion for underprivileged girls.
Today, there are 83 woman AUSAs in the District of Arizona, making up more than half of the District’s AUSA positions. 67% of the Office’s employees are women. Following Judge Richey, four more women have been confirmed as the United States Attorney, including former Maricopa County Superior Court Judge Linda A. Akers, former Arizona governor and United States Secretary of Homeland Security Janet Napolitano, and United States District Judge Diane J. Humetewa.
RELEASE NUMBER: 2019-041_Judge Richey
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Ukranian Man Extradited to the United States to Face Charges in International Money Laundering and Fraud SchemeRead the Press Release
WASHINGTON – South Korean authorities extradited to the United States a Ukranian man in connection with allegations that he conducted an extensive money laundering and fraud campaign that targeted dozens of victims, including a corporation based in the Western District of North Carolina.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray of the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte Field Office made the announcement.
Aleksandr Musienko, aka “Oleksandr Serhiyovych Musiyenko,” “Robert Davis,” and “Ply,” a Ukranian national, was charged in a recently unsealed indictment with one count of wire fraud, one count of bank fraud, one count of money laundering conspiracy and two counts of money laundering. Musienko had been traveling in South Korea, when, at the U.S. government’s request, South Korean officials arrested him on the charges out of the Western District of North Carolina. South Korean officials extradited Musienko to the United States on March 28. Musienko will make his initial appearance at 1:45 p.m. today before U.S. District Court Magistrate Judge David S. Cayer.
According to the indictment, Musienko is charged with engaging in an extensive international money laundering and fraud scheme targeting U.S. corporations and individuals. He is alleged to have begun the scheme in 2009 and continued it through at least 2012.
In particular, Musienko allegedly partnered with overseas cybercriminals who had hacked into, and stole funds from, online bank accounts belonging to a large number of individual and corporate victims in the United States. One victim was a business based in the Western District of North Carolina. Musienko operated a network of “money mules” throughout the United States. According to the indictment, using aliases that included “Robert Davis” and phony front companies that included “Vita Finance AG” and “Hilpert AG,” Musienko recruited money mules throughout the United States using a variety of fraudulent techniques, including by advertising bogus “employment” opportunities to work as “Financial Assistants.” He promised to pay the money mules a fee of approximately five percent for each overseas wire transfer they completed.
Once Musienko had his network of money mules in place, Musienko then offered his money mule services to his cybercriminal partners to assist them in transferring stolen funds. He directed his “money mules” to use their own bank accounts to receive and then transfer proceeds from the compromised bank accounts overseas. As alleged in the indictment, Musienko’s criminal money mule operation effectuated the theft and laundering of at least $2.8 million from 2009 to 2012.
The investigation was conducted by the FBI Charlotte Field Office. The Justice Department’s Office of International Affairs provided significant support with the defendant’s extradition and with obtaining evidence from South Korea. Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Taylor Phillips of the Western District of North Carolina are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ukrainian Man Extradited to the United States to Face Charges in International Money Laundering and Fraud SchemeRead the Press Release
South Korean authorities extradited to the United States a Ukrainian man in connection with allegations that he conducted an extensive money laundering and fraud campaign that targeted dozens of victims, including a corporation based in the Western District of North Carolina.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray of the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte Field Office made the announcement.
Aleksandr Musienko, aka “Oleksandr Serhiyovych Musiyenko,” “Robert Davis,” and “Ply,” a Ukrainian national, was charged in a recently unsealed indictment with one count of wire fraud, one count of bank fraud, one count of money laundering conspiracy and two counts of money laundering. Musienko had been traveling in South Korea, when, at the U.S. government’s request, South Korean officials arrested him on the charges out of the Western District of North Carolina. South Korean officials extradited Musienko to the United States on March 28. Musienko will make his initial appearance at 1:45 p.m. today before U.S. District Court Magistrate Judge David S. Cayer.
According to the indictment, Musienko is charged with engaging in an extensive international money laundering and fraud scheme targeting U.S. corporations and individuals. He is alleged to have begun the scheme in 2009 and continued it through at least 2012.
In particular, Musienko allegedly partnered with overseas cybercriminals who had hacked into, and stole funds from, online bank accounts belonging to a large number of individual and corporate victims in the United States. One victim was a business based in the Western District of North Carolina. Musienko operated a network of “money mules” throughout the United States. According to the indictment, using aliases that included “Robert Davis” and phony front companies that included “Vita Finance AG” and “Hilpert AG,” Musienko recruited money mules throughout the United States using a variety of fraudulent techniques, including by advertising bogus “employment” opportunities to work as “Financial Assistants.” He promised to pay the money mules a fee of approximately five percent for each overseas wire transfer they completed.
Once Musienko had his network of money mules in place, Musienko then offered his money mule services to his cybercriminal partners to assist them in transferring stolen funds. He directed his “money mules” to use their own bank accounts to receive and then transfer proceeds from the compromised bank accounts overseas. As alleged in the indictment, Musienko’s criminal money mule operation effectuated the theft and laundering of at least $2.8 million from 2009 to 2012.
The investigation was conducted by the FBI Charlotte Field Office. The Justice Department’s Office of International Affairs provided significant support with the defendant’s extradition and with obtaining evidence from South Korea. Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Taylor Phillips of the Western District of North Carolina are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office Kicks Off 28th Annual Seminar Series on School SafetyRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that this week, the U.S. Attorney’s Office for the District of South Carolina kicked off its 28th Annual Safe Schools Seminars Series in Greer, West Columbia, and Florence. The Safe Schools Seminars bring together law enforcement and school personnel charged with protecting children—such as superintendents, administrators, counselors, school resource officers, nurses, and social workers—to discuss some of the safety issues today’s students face.
Following this week’s seminars, U.S. Attorney Lydon stated, “As we join with Walterboro in mourning the loss of a precious young life this week, we are reminded of the weight of our responsibility to ensure schools are a safe place for students to learn and grow. Through our Safe Schools partnership, we will continue working toward that goal. I am grateful to our law enforcement partners and educators across the state who work tirelessly to protect our students.”
Topic sessions during the Safe Schools Seminars include De-Escalation in the Education Environment; Behavior Threat Assessment; Vaping: How It’s Affecting Our Youth; and Don’t Get Sued: Protecting Educators, Administrators, and SROs from Liabilities.
The Safe Schools Seminars are hosted by the U.S. Attorney’s Office, the South Carolina Law Enforcement Officers Association, the South Carolina Department of Education, the Francis Marion University Police Department, the West Columbia Police Department, the Lexington Police Department, the Greer Police Department, and the North Charleston Police Department.
Upcoming Safe Schools Seminars will be in Lexington on April 16, and North Charleston on June 12.
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U.S. Attorney’s Office Commemorates Women’s History Month by Honoring First Woman to Serve as U.S. Attorney for the District of South DakotaRead the Press Release
SIOUX FALLS, SD – In observance of Women’s History Month, United States Attorney Ron Parsons is pleased to honor and highlight the first and only woman to serve as the Presidentially-appointed U.S. Attorney for the District of South Dakota, the Honorable Karen E. Schreier.
Annette Abbott AdamsThe first U.S. Attorneys were appointed in 1789 and it was not until 129 years later that the first woman became a U.S Attorney. Her name was Annette Abbott Adams. She was appointed by the court and then nominated by President Wilson in 1918 to serve as U.S. Attorney for the Northern District of California. It was not until 39 years later, in 1957, before the next woman was appointed as a U.S. Attorney, Kathleen Ruddell, who was nominated by President Eisenhower to serve in the Eastern District of Louisiana.
Karen E. SchreierIt took some time, but the District of South Dakota eventually caught up with history. In 1993, Karen E. Schreier was appointed by President Clinton and confirmed by the U.S. Senate as the 36th U.S. Attorney for the District of South Dakota. She served in that capacity for six years until 1999, when she was appointed by President Clinton and confirmed by the Senate as the first and only woman to serve as a U.S. District Judge in the District of South Dakota. Judge Schreier presided as Chief Judge of the District of South Dakota from 2006 to 2013, and continues to serve as the principal U.S. District Judge for the Southern Division.
Thanks in large part to the pathfinding accomplishments of leaders such as Judge Schreier, women now make up 56 percent (18 out of 32) of Assistant U.S. Attorneys serving in the District of South Dakota and approximately 60 percent of its total staff. The U.S. Attorney’s Office is proud to commemorate Women’s History Month and to encourage the study, observance, and celebration of the vital role of women in American history.
Two Men Convicted of 1997 Double Murder in the BronxRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that ROBERT ACOSTA and JOSE DIAZ were convicted of the December 22, 1997, murders of Alex Ventura, 25, and Aneudis Almonte, 20. The convictions follow a three-week trial before U.S. District Judge Kevin P. Castel.
U.S. Attorney Geoffrey S. Berman said: “More than two decades ago, two young men were brutally murdered in a Bronx stairwell. Although the case went cold, members of the NYPD and the FBI worked tirelessly to solve it. A unanimous jury has now held Acosta and Diaz responsible for this terrible crime.”
According to the evidence presented during the trial:
In the 1990s, ACOSTA was the leader of a large-scale drug trafficking organization that distributed hundreds of kilograms of cocaine out of several buildings in northern Manhattan. In the summer of 1997, the murder victims stole more than $200,000 in drug money from a stash apartment that belonged to ACOSTA. To retaliate, ACOSTA hired DIAZ to kill both men.
On December 22, 1997, DIAZ and a co-conspirator (“CC-1”) lured the victims to an apartment building in the Bronx, ambushed them in a stairwell, and murdered them both. CC-1 stabbed 20-year-old Almonte six times, including once in the chest. DIAZ shot Ventura, 25, in the head from point-blank range. In exchange for these murders, ACOSTA paid DIAZ $12,000.
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ACOSTA, 47, of Yonkers, New York was convicted of murder while engaged in a conspiracy to distribute five or more kilograms of cocaine (Counts One and Two), conspiracy to commit murder for hire (Count Three), and murder for hire (Counts Four and Five). DIAZ, 53, of the Bronx, New York was convicted of conspiracy to commit murder for hire (Count Three), murder for hire (Counts Four and Five), and the use of a firearm to commit murder in furtherance of a crime of violence (Count Six). ACOSTA and DIAZ each face a mandatory sentence of life in prison.
Mr. Berman praised the outstanding investigative work of the NYPD and FBI.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Laurie A. Korenbaum, Michael K. Krouse, and Nicholas W. Chiuchiolo are in charge of the prosecution.
Two Louisiana Residents Charged with Conspiring to Harbor Aliens and Tax CrimesRead the Press Release
A federal grand jury sitting in New Orleans, Louisiana, returned an indictment against two Louisiana residents, charging each with one count of conspiracy to harbor an alien, one count of conspiracy to defraud the United States, 48 counts of failure to withhold and pay over employment tax, and 12 counts of aiding and assisting in the preparation of a fraudulent tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.
As alleged in the indictment, Imad “Eddie” Hamdan and Ziad “Z” Mousa owned and operated over 30 locations of Brothers Food Mart. Hamdan and Mousa are alleged to have hired undocumented workers to work in their stores and paid them in cash. To further conceal these undocumented workers, Hamdan and Mousa allegedly filed false employment tax returns with the Internal Revenue Service (IRS) that did not report the cash wages paid to the undocumented workers.
In addition, the indictment charges that Hamdan and Mousa paid the salaries of the managers of the Brothers Food Mart stores partially in cash. Allegedly, employment taxes were also not withheld or reported in connection with these cash wages. Finally, according to the indictment, Hamdan and Mousa issued and filed false Forms W-2 that underreported their wages. The indictment further alleges that Hamdan and Mousa aided in the filing of fraudulent tax returns for the managers of Brothers Food Mart stores.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Hamdan and Mousa each face a statutory maximum sentence of ten years in prison for the conspiracy to harbor aliens count, five years for the conspiracy to defraud the United States count, five years for each count of willful failure to withhold and pay over employment tax, and three years for each count of aiding and assisting in the preparation of a fraudulent tax return. They also face substantial monetary penalties, supervised release, and restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Strasser commended Assistant United States Attorney Greg Kennedy and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case. The case was investigated by special agents of IRS-Criminal Investigation and Homeland Security Investigations.
Two Louisiana Residents Charged with Conspiring to Harbor Aliens and Tax CrimesRead the Press Release
WASHINGTON –A federal grand jury sitting in New Orleans, Louisiana, returned an indictment against two Louisiana residents, charging each with one count of conspiracy to harbor an alien, one count of conspiracy to defraud the United States, 48 counts of failure to withhold and pay over employment tax, and 12 counts of aiding and assisting in the preparation of a fraudulent tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.
As alleged in the indictment, Imad “Eddie” Hamdan and Ziad “Z” Mousa owned and operated over 30 locations of Brothers Food Mart. Hamdan and Mousa are alleged to have hired undocumented workers to work in their stores and paid them in cash. To further conceal these undocumented workers, Hamdan and Mousa allegedly filed false employment tax returns with the Internal Revenue Service (IRS) that did not report the cash wages paid to the undocumented workers.
In addition, the indictment charges that Hamdan and Mousa paid the salaries of the managers of the Brothers Food Mart stores partially in cash. Allegedly, employment taxes were also not withheld or reported in connection with these cash wages. Finally, according to the indictment, Hamdan and Mousa issued and filed false Forms W-2 that underreported their wages. The indictment further alleges that Hamdan and Mousa aided in the filing of fraudulent tax returns for the managers of Brothers Food Mart stores.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Hamdan and Mousa each face a statutory maximum sentence of ten years in prison for the conspiracy to harbor aliens count, five years for the conspiracy to defraud the United States count, five years for each count of willful failure to withhold and pay over employment tax, and three years for each count of aiding and assisting in the preparation of a fraudulent tax return. They also face substantial monetary penalties, supervised release, and restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Strasser commended Assistant United States Attorney Greg Kennedy and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case. The case was investigated by special agents of IRS-Criminal Investigation and Homeland Security Investigations.
Two Individuals Found Guilty by A Jury for Carjacking Mother and Two Young Children at Gas Station in Broad DaylightRead the Press Release
SAN JUAN, P.R. – Yesterday, Eddie Guerrero-Narváez and Keyvan Cartagena-Suárez, were found guilty of working together to commit a carjacking against a mother and her two young children, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States Senior Judge Juan M. Pérez-Giménez presided over the trial.
On January 10, 2018, a federal grand jury returned an indictment charging Guerrero-Narváez with one-count of carjacking. After additional evidence was uncovered that placed Cartagena-Suárez at the scene of the crime, a federal grand jury returned a superseding indictment adding Cartagena-Suárez as a co-defendant.
During the 2-day trial, the government presented evidence that Guerrero-Narváez and Cartagena-Suárez worked together, in broad daylight, to carjack a BMW Sports Utility Vehicle from a mother, with her two young children in the backseat, at a Puma Gas station, located near the airport on Calle Los Angeles in Carolina, Puerto Rico. According to the testimony of the Victim, on January 3, 2018, Guerrero-Narváez came up to her as she attempted to exit her vehicle to pump gas. Guerrero-Narváez then threatened her and her children by stating that if she cooperated, they would not get hurt and gestured as if he had a weapon. Fearing for her life and the safety of her children, the Victim complied and allowed Guerrero-Narváez to take the vehicle.
Later that evening, Guerrero-Narváez was arrested in Carolina, around the corner from the BMW, with the keys to the car. Cartagena-Suárez was walking with Guerrero-Narváez at the time of his arrest. After finding Cartagena-Suárez’s fingerprints on the driver’s door handle, his driver’s license inside the car, and video surveillance showing Cartagena-Suárez and Guerrero-Narváez working together at the Puma gas station, Cartagena-Suárez was added to the Indictment. According to the testimony of an FBI Special Agent, during an interview, Cartagena-Suárez admitted to going to the gas station knowing that a carjacking would occur, being present for the carjacking, and getting into the stolen vehicle after Guerrero-Narváez took the BMW from the Victim.
The case was prosecuted by Assistant United States Attorney David T. Henek. The defendants face a maximum penalty of 15 years in prison. The sentencing hearing is scheduled for July 12, 2019 at 10:15 am.
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Two Corporate Executives Indicted in First-Ever Criminal Prosecution for Failure to Report under Consumer Product Safety ActRead the Press Release
LOS ANGELES – A federal grand jury returned an indictment yesterday against two corporate executives for their roles in a scheme involving defective and dangerous consumer products, the Department of Justice announced.
Simon Chu, 63, of Chino Hills, California, and Charley Loh, 60, of Arcadia, California, were charged with a multiple-object conspiracy to commit wire fraud, to fail to furnish information under the Consumer Product Safety Act (CPSA), and to defraud the U.S. Consumer Product Safety Commission (CPSC). In addition to the conspiracy charge, the indictment also charges both defendants with one count of wire fraud and one count of failure to furnish information under the CPSA.
According to the indictment, Simon Chu was part owner and chief administrative officer of two corporations in City of Industry, California, that imported, distributed, and sold to retailers for consumer purchase dehumidifiers that were made in China. The indictment further states that Loh was part owner and chief executive officer of the same two corporations.
The Consumer Product Safety Act requires manufacturers, importers, and distributors of consumer products to report “immediately” to the CPSC information that reasonably supports the conclusion that a product contains a defect that could create a substantial product hazard or creates an unreasonable risk of serious injury or death. This duty also applies to the individual directors, officers, and agents of those companies. The indictment alleges that as early as September 2012, Chu, Loh, and their companies received multiple reports that their Chinese dehumidifiers were defective, dangerous, and could catch fire. They also allegedly knew that they were required to report this product safety information to the CPSC immediately. Despite their knowledge of consumer complaints of dehumidifier fires and test results showing problems with the dehumidifiers, the indictment alleges that Chu and Loh failed to disclose their dehumidifiers’ defects and hazards for at least six months while they continued to sell their products to retailers for resale to consumers.
“The importation, distribution, and sale of defective consumer products have real-world consequences, including serious injury or death,” said Nicola T. Hanna, U.S. Attorney for the Central District of California. “This indictment sends a clear message: If you plan to profit from selling defective products, you should also plan to face justice.”
“When corporate executives delay reporting defective consumer products to the CPSC, it puts consumers at needless risk for injury or even death,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This prosecution reflects the Department of Justice’s commitment to enforcing product safety laws that protect consumers from product hazards. We will seek to hold accountable corporate executives who value profits over the safety of consumers by failing to immediately report their dangerous products.”
The indictment further alleges that as part of their scheme, Chu and Loh deliberately withheld information about the defective and dangerous Chinese dehumidifiers from the retail companies that bought the dehumidifiers; the insurance companies that paid for damage caused by the fires resulting from the dehumidifiers; and the CPSC. Loh and Chu allegedly continued to sell the Chinese dehumidifiers to retailers with false certifications that the products met safety standards; caused a company employee to solicit materials that would falsely portray to an insurance company that the dehumidifiers were safe and not defective; and sent an untimely report to the CPSC that falsely stated that the dehumidifiers were not defective or hazardous.
“Inferior goods represent a serious threat to the integrity of the consumer product supply chain that the public needs to rely on with confidence,” said Joseph Macias, Special Agent in Charge for Homeland Security Investigations (HSI) Los Angeles. “Dangerous products like these pose a serious threat to consumers who mistakenly assume the products are safe and reliable. HSI will continue to work with our law enforcement partners to aggressively target and investigate those who would do harm to the public safety of our citizens.”
According to the indictment, Chu, Loh, and their companies continued to sell the defective and dangerous dehumidifiers through April 2013, and sought to avoid, reduce, and delay the costs of recalling the products. If convicted, Loh and Chu face a term of up to five years in prison for each of the conspiracy and the failure to furnish information counts. They both face up to 20 years’ imprisonment for the wire fraud charge. If convicted, the defendants are also subject to forfeiture and a fine of $250,000 or twice the gross gain or loss for each count.
In September 2013, the CPSC announced a recall of 2.2 million dehumidifiers, including Chinese dehumidifiers allegedly sold by Loh’s and Chu’s companies between September 2012 and April 2013.
An indictment merely alleges that crimes have been committed, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case is being prosecuted by Senior Litigation Counsel Allan Gordus and Trial Attorney Natalie Sanders of the U.S. Department of Justice’s Consumer Protection Branch and Assistant United States Attorneys Joseph Johns and Dennis Mitchell of the Central District of California, with the assistance of Patricia Vieira of the CPSC Office of General Counsel. The case was investigated by U.S. Homeland Security Investigations in the Department of Homeland Security.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.
Two Corporate Executives Indicted in First-Ever Criminal Prosecution for Failure to Report Under Consumer Product Safety ActRead the Press Release
A federal grand jury returned an indictment yesterday against two corporate executives for their roles in a scheme involving defective and dangerous consumer products, the Department of Justice announced.
Simon Chu, 63, of Chino Hills, California, and Charley Loh, 60, of Arcadia, California, were charged with a multiple-object conspiracy to commit wire fraud, to fail to furnish information under the Consumer Product Safety Act (CPSA), and to defraud the U.S. Consumer Product Safety Commission (CPSC). In addition to the conspiracy charge, the indictment also charges both defendants with one count of wire fraud and one count of failure to furnish information under the CPSA.
According to the indictment, Simon Chu was part owner and chief administrative officer of two corporations in City of Industry, California, that imported, distributed, and sold to retailers for consumer purchase dehumidifiers that were made in China. The indictment further states that Loh was part owner and chief executive officer of the same two corporations.
The Consumer Product Safety Act requires manufacturers, importers, and distributors of consumer products to report “immediately” to the CPSC information that reasonably supports the conclusion that a product contains a defect that could create a substantial product hazard or creates an unreasonable risk of serious injury or death. This duty also applies to the individual directors, officers, and agents of those companies. The indictment alleges that as early as September 2012, Chu, Loh, and their companies received multiple reports that their Chinese dehumidifiers were defective, dangerous, and could catch fire. They also allegedly knew that they were required to report this product safety information to the CPSC immediately. Despite their knowledge of consumer complaints of dehumidifier fires and test results showing problems with the dehumidifiers, the indictment alleges that Chu and Loh failed to disclose their dehumidifiers’ defects and hazards for at least six months while they continued to sell their products to retailers for resale to consumers.
“When corporate executives delay reporting defective consumer products to the CPSC, it puts consumers at needless risk for injury or even death,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This prosecution reflects the Department of Justice’s commitment to enforcing product safety laws that protect consumers from product hazards. We will seek to hold accountable corporate executives who value profits over the safety of consumers by failing to immediately report their dangerous products.”
“The importation, distribution, and sale of defective consumer products have real-world consequences, including serious injury or death,” said Nicola T. Hanna, U.S. Attorney for the Central District of California. “This indictment sends a clear message: If you plan to profit from selling defective products, you should also plan to face justice.”
The indictment further alleges that as part of their scheme, Chu and Loh deliberately withheld information about the defective and dangerous Chinese dehumidifiers from the retail companies that bought the dehumidifiers; the insurance companies that paid for damage caused by the fires resulting from the dehumidifiers; and the CPSC. Loh and Chu allegedly continued to sell the Chinese dehumidifiers to retailers with false certifications that the products met safety standards; caused a company employee to solicit materials that would falsely portray to an insurance company that the dehumidifiers were safe and not defective; and sent an untimely report to the CPSC that falsely stated that the dehumidifiers were not defective or hazardous.
“Inferior goods represent a serious threat to the integrity of the consumer product supply chain that the public needs to rely on with confidence,” said Joseph Macias, Special Agent in Charge for Homeland Security Investigations (HSI) Los Angeles. “Dangerous products like these pose a serious threat to consumers who mistakenly assume the products are safe and reliable. HSI will continue to work with our law enforcement partners to aggressively target and investigate those who would do harm to the public safety of our citizens.”
This case is being prosecuted by Senior Litigation Counsel Allan Gordus and Trial Attorney Natalie Sanders of the U.S. Department of Justice’s Consumer Protection Branch and Assistant United States Attorneys Joseph Johns and Dennis Mitchell of the Central District of California, with the assistance of Patricia Vieira of the CPSC Office of General Counsel. The case was investigated by U.S. Homeland Security Investigations in the Department of Homeland Security.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.
Two Baltimore Men Sentenced to at Least 12 Years in Federal Prison for Attempting to Rob Undercover ATF Special Agents at GunpointRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Menard Hazelwood, age 29, and Donte Smith, age 34, both of Baltimore, to 13 years in federal prison and 12 years in federal prison, respectively, each followed by three years of supervised release, for assaulting a federal officer and brandishing a firearm during a crime of violence, in connection with the May 26, 2017, assault on two undercover Special Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The sentence were announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Rob Cekada of the ATF Baltimore Field Division.
“These brave agents, like all law enforcement officers, put their lives on the line every day to identify and disrupt the drug dealers that bring violence to our streets. We are grateful that they were able to return home safely,” said United States Attorney Robert K. Hur. “These defendants thought they were robbing drug customers, which happens all often in Baltimore. Hopefully the sentences imposed today send a message to those who would commit violence that gun crime will lead to federal time, which has no parole – ever.”
“We are glad to see justice served today and are grateful that our dedicated Special Agents were unharmed,” said ATF Baltimore Special Agent in Charge Rob Cekada. “ATF’s top priority in Baltimore is to identify and target the criminal organizations responsible for gun violence. Special Agents risk their personal safety each time they work undercover during an investigation, yet they do this because they know the importance of their mission to protect the community from these violent criminals.”
According to Smith and Hazelwood’s plea agreements, on May 26, 2017, during an ATF undercover operation, Smith and Hazelwood attempted to rob two ATF undercover Special Agents (UCs), who were working with a confidential informant (CI) to purchase $2,000 worth of heroin from a known heroin dealer. The UCs and the CI had picked up the heroin dealer, with one UC driving and the other UC in the front passenger seat, then drove to a location in West Baltimore to meet with the dealer’s supplier. The dealer got out of the car and told the CI and the UCs to wait; Smith and Hazelwood immediately walked up to the vehicle. Smith asked the UCs for a light and Hazelwood took advantage of the distraction and pointed a gun at the UC in the passenger seat. Smith then pointed a silver revolver at the other UC. Smith and Hazelwood demanded money. The UCs told Smith and Hazelwood, who continued to hold them at gunpoint, that there was cash in the vehicle. The UCs then gave the distress signal to the covert ATF team that was monitoring the operation. As the covert team arrived on the scene, the agents ordered Smith and Hazelwood to put their hands up. Smith fled, and the responding ATF Special Agents fired their service weapons, striking Smith. Hazelwood also broke away and ran to a nearby car, but was not able to get into the car. Special Agents arrested him at the scene.
Agents recovered the .44-caliber revolver brandished by Smith during the robbery, but did not recover the gun used by Hazelwood. Smith and Hazelwood admitted that they each participated in the robbery, but did not know that the undercover Special Agents were federal agents at the time of the robbery.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the ATF for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Patricia C. McLane, who prosecuted the case.
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Three Indicted in Fort Wayne for Hobbs/Armed Robbery Related OffensesRead the Press Release
FORT WAYNE, IN –Quran Waterford, 34, of Bloomington, Indiana, Gary McCaleb, 29, of Harvey, Illinois, and Mandell Strawter, 27, of Fort Wayne, Indiana, were charged in a seven count Indictment returned by the Grand Jury arising out of the armed robberies of B&H Firearms and a T-Mobile Store in Fort Wayne, Indiana on December 5 and 13, 2018, announced U.S. Attorney Thomas L. Kirsch, II.
The indictment alleges that between November 28 and December 13, 2018, the three conspired to commit Hobbs Act Robbery. The Indictment further alleges that on December 5 and 13, 2018, Waterford and McCaleb committed Hobbs Act robberies of B&H Firearms and a T-Mobile store in Fort Wayne. Waterford and McCaleb, in connection with these robberies, were also charged with using, carrying and brandishing a firearm during and in relation to those crimes of violence. Finally, Waterford and McCaleb were charged with being convicted felons in possession of firearms.
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fort Wayne Police Department. This case is being prosecuted by Assistant United States Attorney Stacey R. Speith.
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Texas Man Arrested and Charged with Bribery ConspiracyRead the Press Release
McALLEN, Texas - A Weslaco man has been arrested on charges of conspiracy to commit bribery and other offenses in connection with a scheme to bribe a city commissioner in exchange for government contracts.
U.S. Attorney Ryan K. Patrick made the announcement along with Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Christopher Combs of the FBI San Antonio Field Office and Acting Special Agent in Charge Sarah Kull of the IRS-Criminal Investigation (CI) Houston Field office.
An 18-count indictment filed in the Southern District of Texas and unsealed upon his arrest yesterday charges Richard Quintanilla, 51, with conspiring to bribe and bribing a Weslaco City Commissioner in exchange for official actions favorable to three engineering companies. According to the indictment, from approximately August 2011 through December 2016, the companies supplied Quintanilla with approximately $85,950 which was funneled through a co-conspirator. Quintanilla allegedly kept a portion of these payments and paid the remainder to a city commissioner. In exchange for these bribe payments, the indictment alleges that the city commissioner used his official position to benefit the companies, including by voting to authorize multi-million dollar contracts for water treatment facilities in the City of Weslaco. Quintanilla will appear before U.S. Magistrate Judge Peter E. Ormsby today at 11:00 a.m.
The FBI and IRS-CI conducted the investigation. Assistant U.S. Attorney Roberto Lopez is prosecuting the case along with Trial Attorneys Peter M. Nothstein and Jessica C. Harvey of the Criminal Division’s Public Integrity Section.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Texas Man Arrested and Charged with Bribery ConspiracyRead the Press Release
A Weslaco, Texas man has been arrested on charges of conspiracy to commit bribery and other offenses in connection with a scheme to bribe a city commissioner in exchange for government contracts.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick for the Southern District of Texas, Special Agent in Charge Christopher Combs of the FBI San Antonio Field Office and Acting Special Agent in Charge Sarah Kull of the IRS Criminal Investigation (CI) Houston Field office, made the announcement.
An 18-count indictment filed in the Southern District of Texas and unsealed upon his arrest yesterday charges Richard Quintanilla, 51, with conspiring to bribe and bribing a Weslaco City Commissioner in exchange for official actions favorable to three engineering companies. According to the indictment, from approximately August 2011 through December 2016, the companies supplied Quintanilla with approximately $85,950, which was funneled through a co-conspirator. Quintanilla allegedly kept a portion of these payments and paid the remainder to a city commissioner. In exchange for these bribe payments, the indictment alleges that the city commissioner used his official position to benefit the companies, including by voting to authorize multi-million dollar contracts for water treatment facilities in the City of Weslaco. Quintanilla will appear before U.S. Magistrate Judge Peter E. Ormsby at 11:00 a.m. CT today.
An indictment contains only allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and IRS-CI conducted the investigation. Trial Attorneys Peter M. Nothstein and Jessica C. Harvey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Roberto Lopez of the Southern District of Texas are prosecuting the case.
Tallahassee Music Teacher Sentenced to 240 Months in Prison for Enticing a Minor and Child Pornography OffensesRead the Press Release
TALLAHASSEE, FLORIDA – Nicholas Hughes, 34, of Tallahassee, was sentenced to 240 months in prison today for enticement of a minor, production, and possession of child pornography, after being convicted on January 4 following a two-day trial. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the sentence.
During the 2016-2017 school year, the mother of a 13-year-old student reported that her child had told her about various sexual encounters with Hughes, a music teacher at Coast Charter School in St. Marks, Florida. Hughes and the victim communicated through in-person visits, telephone calls, text messages, and social media applications, including sending pornographic pictures. A forensic review of Hughes’s laptop computer and external hard drive revealed dozens of images and videos of child pornography.
U.S. Attorney Keefe said: “Children see their teachers as role models and mentors, and in this tragic case, the defendant took advantage of that trust. Together with our federal, state, and local law enforcement partners, we will pursue child predators and bring them to justice.”
“This predator was in a position of trust and abused that trust in the worst way possible,” said HSI Tampa Special Agent in Charge James C. Spero. “All child exploitation is reprehensible, but this case is even more egregious having been committed by someone trusted by children and parents.”
FDLE Tallahassee Regional Operations Center Special Agent in Charge Mark Perez said: “Florida’s families should be able to feel confident that their children are safe at school. The violation of that trust here is despicable and has no place in our community.”
The case was investigated by United States Immigration and Customs Enforcement Homeland Security Investigations, the Wakulla County Sheriff’s Office, the Florida Department of Law Enforcement, the Leon County Sheriff’s Office, and other members of the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorneys Michelle Daffin and Christopher Thielemann.
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.
Suspect in Evanston carjacking case receives 184 Months in Federal PrisonRead the Press Release
JONATHAN ALEXANDER OLIVARES, 26, of Uinta County, Wyoming was sentenced in Federal District Court on March 25, 2019 by Chief United States District Judge Scott W. Skavdahl for carjacking and use/carrying a firearm during and in relation to a crime of violence.
The charges against Mr. Olivares stemmed from his assault of a Uinta County Sheriff’s Deputy following a State District Court appearance in Evanston, Wyoming on June 26, 2018. After his court appearance, Mr. Olivares attacked and disarmed a Sheriff’s Deputy and fled the County Courthouse before carjacking a local resident at gunpoint. Fast-acting local law enforcement authorities located and re-arrested Mr. Olivares shortly after his escape.
United States Attorney Mark A. Klaassen announced the sentence of one hundred eighty-four months in federal prison to be followed by sixty months of supervised release. Klaassen stated, "I appreciate the prompt action of law enforcement to apprehend the defendant and assist in his prosecution. Such acts of violence will not be tolerated and I am pleased to see that a measure of justice has been achieved to address this unacceptable conduct." Olivares was also ordered to pay $1,727.58 in restitution and a special assessment of $200.00.
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. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Springfield Man Pleads Guilty to Armed RobberyRead the Press Release
BOSTON – A Springfield man pleaded guilty today in federal court in Springfield in connection with an armed robbery of a convenience store and firearms charges.
Emilio Rivera, 30, pleaded guilty to one count of interference with commerce by robbery, one count of using a firearm in relation to crime of violence, and one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for July 9, 2019.
On Nov. 14, 2018, Rivera and alleged co-defendant Alfredo Aldeco, 32, of Holyoke, robbed a clerk in a West Springfield convenience store at gunpoint. After forcibly taking cash and cigarettes from the clerk, Aldeco warned the clerk, “If you call the cops, I will come back and kill you.” When law enforcement later executed a search warrant on Rivera’s home, they found the firearm used in the robbery along with another firearm and ammunition. At the time, Rivera was prohibited from possessing a firearm or ammunition due to a prior felony conviction.
Aldeco has pleaded not guilty and is awaiting trial.
The charges of interference with commerce by robbery and using a firearm in relation to a crime of violence provides for a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement. The West Springfield, Holyoke, Agawam, Chicopee, Northampton, and Springfield Police Departments and the Massachusetts State Police provided valuable assistance to the investigation. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sex Offender Sentenced to Fifteen Years for Child Pornography Offenses, Violating Supervised ReleaseRead the Press Release
Orlando, Florida – United States District Judge Paul G. Byron has sentenced Vincenzo (Vincent) G. Savarese (36, Melbourne) to 15 years in federal prison, for accessing with the intent to view child pornography and for violating the terms of his supervised release. The court also ordered Savarese to serve a lifetime of supervision following his release from prison.
Savarese pleaded guilty on October 5, 2018.
According to court documents, in 2009, Savarese was convicted in the United States District Court in Utah of possession of child pornography. Savarese was sentenced to 6 years and 6 months in federal prison, to be followed by 10 years of supervised release. On June 9, 2015, Savarese completed his prison term and returned to Brevard County, Florida, where he began his supervised release.
On May 24, 2018, while on supervised release, Savarese accessed and attempted to access child pornography with the intent to view it, using a computer at a job placement business that was open to the public. Savarese stated that he had gone to the business several times a week and used the computers there to search for child pornography. Law enforcement officers searched the computer used by Savarese and located more than 85 searches for child pornography and 4 images depicting child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Karen L. Gable.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Rockville Man Who Posed as a Modeling Agent to Obtain Sexually Explicit Images of Minor Female Victims Sentenced to 22 Years in Federal Prison for Child Pornography ChargesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Stephen McGrath, age 44, of Rockville, Maryland, today to 22 years in federal prison, followed by 25 years of supervised release, for federal charges of coercion and enticement of a minor to engage in sexual activity in order to produce child pornography, and possession of child pornography. Upon his release from prison, McGrath will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to McGrath’s plea agreement, between June 16 and October 9, 2017, McGrath used Internet-based chat applications “MeetMe” and “KIK” to communicate with six minor female victims, ranging in age from 12 to 16 years old. In his communications with the victims, McGrath, posing as a female modeling agent, confirmed the ages of the victims and requested photographs, including nude and sexually explicit images, which the victims then sent to McGrath as part of their “modeling evaluation.” McGrath also admitted that he distributed sexually explicit images of Victim 6, a 14-year-old girl, to two of her male friends, whose account information he had requested from Victim 6.
Subscriber information for the accounts used to communicate with Victim 1 showed that the user connected to each account through the same IP address, which was assigned to McGrath in Rockville. Law enforcement agents executed a federal search warrant at McGrath’s residence on October 13, 2017, and seized his cellular phone. The phone had an application for password-protected digital storage. McGrath supplied the password, which revealed folders within the application labeled with female names and containing pictures and videos constituting more than 600 images of child pornography, including images of the victims described above. The KIK application was also found on the phone as well as numerous chat conversations with minor females.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI-Baltimore and the Maryland State Police for their work in the investigation and thanked the Montgomery County Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorney Joseph R. Baldwin, who prosecuted the federal case.
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Pittsburgh Felon Pleads Guilty to Drug Trafficking ChargesRead the Press Release
PITTSBURGH - A former resident of Pittsburgh, Pennsylvania, pleaded guilty on March 26, 2019, in federal court to felony drug trafficking charges, United States Attorney Scott W. Brady announced today.
Nathaniel Smiley, age 39, pleaded guilty to charges from two separate incidents before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Smiley was on federal Supervised Release after serving his prior federal prison sentence of 100 months for the illegal possession of a firearm, when, on December 19, 2016, the Drug Enforcement Administration purchased 500 stamp bags, containing 9.2 grams of heroin, from Smiley. A search warrant was executed at his residence that day and $11,999 in cash was recovered.
On April 2, 2017, Smiley was apprehended. Two-hundred stamp bags containing 4.108 grams of fentanyl and 20.143 grams of powder cocaine were seized from his rental vehicle.
Judge Cercone scheduled sentencing for July 22, 2019 at 11 a.m. The law provides for a total sentence of up to 60 years in prison, a fine of up to $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
The court ordered Smiley’s continued detention pending sentencing.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The DEA conducted the investigation that led to the prosecution of Smiley, with the valuable assistance of the Pennsylvania State Police and officers from multiple federal, state and local law enforcement agencies.
Owner of Former Springfield Medical Supply Business Sentenced to Two Years in Prison for Medicaid FraudRead the Press Release
SPRINGFIELD, Ill. – A former Springfield, Ill., man whose business supplied incontinence products to Medicaid recipients, Kevin W. Schaul, was sentenced today for defrauding Illinois’ Medicaid program. U.S. District Judge Sue E. Myerscough ordered that Schaul, 53, currently of Augusta, Mo., serve 24 months in federal prison and pay restitution in the amount of $582,844. Schaul’s prison term will be followed by a three-year term of supervised release, with the first six months as home confinement. Schaul was ordered to report to serve his prison term on a date to be determined by the federal Bureau of Prisons.
On Aug. 30, 2018, Schaul pleaded guilty to five counts of health care fraud related to his business, Childrite Medical Supply, Inc., which he operated from a residence at 201 N. Natchez Trace, in Springfield, Ill. Childrite supplied incontinence products, such as diapers, pull-ups and underpads, to Medicaid recipients, specifically to special-needs adults and children. Medicaid paid Childrite approximately $2.3 million based on submitted claims. The Childrite corporation was involuntarily dissolved in October 2014.
Schaul admitted that from August 2009 through at least September 2013, he repeatedly submitted and caused false claims to be submitted to the Illinois Department of Healthcare and Family Services for delivery of incontinence products. The false claims represented that products had been delivered to Medicaid recipients when no products were delivered or were not delivered in the amount claimed. Schaul used the fraudulent Medicaid payments for his personal use, including for clothing, food, entertainment, fuel, travel, mortgage payments and payments to a family member.
The charges were investigated by the Illinois State Police Medicaid Fraud Control Bureau and the U.S. Department of Health and Human Services, Office of Inspector General. The Illinois Department of Healthcare and Family Services, Office of Inspector General provided assistance in the investigation. Assistant U.S. Attorney Timothy A. Bass prosecuted the case.
Ohio County man sentenced for failing to update his sex offender registrationRead the Press Release
WHEELING, WEST VIRGINIA – Joshua Phillip Sweet, of Triadelphia, West Virginia, was sentenced today to eight months incarceration for not updating his sex offender registration, United States Attorney Bill Powell announced.
Sweet, age 37, pled guilty to one count of “Failure to Update Sex Offender Registration” in February 2019. Sweet admitted to moving from Niagra Falls, New York, to Triadelphia, West Virginia in July 2017 and not updating his sex offender registration, as required by law.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The United States Marshals Service and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
New US Marshals Director Takes Oath of OfficeRead the Press Release
Donald Washington was sworn in as the director of the U.S. Marshals Service today in a ceremony at the Tom Stagg U.S. District Court in Shreveport, Louisiana, with Chief Judge S. Maurice Hicks Jr. presiding and Chief Judge Carl E. Stewart of the 5th U.S. Circuit Court of Appeals administering the oath of office.
Washington becomes the agency’s 11th director since the office was established in 1970.
The Department of Justice will hold a ceremonial installation service for Washington when he arrives at Marshals headquarters.
“We are thrilled to have Director Washington return to the Department. He brings a wealth of experience as a former U.S. Attorney and lawyer in various private and corporate capacities,” said U.S. Attorney General William Barr. “We look forward to formally welcoming him to the U.S. Marshals Service at a ceremony April 11th.”
President Donald Trump nominated Washington Oct. 2, 2018, to lead the U.S. Marshals. The U.S. Senate confirmed his nomination March 14.
A 1977 West Point graduate, Washington served in the U.S. Army and U.S. Army Reserve until 1987. In 1989, he received his Juris Doctor from South Texas College of Law, Houston, Texas. After law school, Washington began his legal career as an attorney at Conoco Inc.
In 2001, President George W. Bush appointed him U.S. Attorney for Western Louisiana, a 42-parish federal jurisdiction that includes Lafayette, Shreveport, Alexandria, Monroe and Lake Charles. Washington served on several U.S. Attorney General’s Advisory Committees, as well as subcommittees on Civil Rights, Controlled Substances, and Native American Issues. Washington also served as the Chairman of the Southeastern U.S. Organized Crime Drug Enforcement Task Force. In 2010, he returned to private practice in Lafayette, Louisiana.
Medicaid Fraud Provider PleaRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announced that in federal court, United States Magistrate Judge Robert B. Jones, Jr. accepted a guilty plea in a health care fraud matter.
ANDREA BOATMAN HALL, now known as, ANDREA MONIQUE PURNELL, 32 years of age, from Sanford N.C., pled guilty to one count of Medicaid Provider Fraud.
The investigation revealed that PURNELL was the owner, operator, manager and/or CEO of Extended Reach Day Treatment for Children and Adolescents (”Extended Reach”), a Medicaid provider of behavioral health services, including “day treatment” services. From on or about October 1, 2013, through October 26, 2016, PURNELL engaged in a scheme to defraud Medicaid by “adding” units of Day Treatment services not actually provided to Medicaid recipients in Extended Reach’s billed claim submissions. These “added” units were added to those units of service that were actually provided to Medicaid recipients on a particular date of service. For example, a particular beneficiary may have been at Extended Reach for four (4) hours on a particular day, but the Defendant billed the maximum six (6) hours for the individual on that day. The defendant engaged in an extensive and systematic scheme to fraudulently bill “added” unit claims for “day treatment” services provided to Medicaid recipients.
Additionally, PURNELL engaged in a scheme to defraud Medicaid by billing for “day treatment” services allegedly provided to Medicaid recipients on dates of service when those recipients were absent, and where such services were not in fact provided. As such, these false claims differ from “added” claims because no “day treatment” services at all were provided to the Medicaid recipients on the alleged dates of service. These “absent” client billings include billings for clients who were simply absent on a particular billed day of the week (for example, if a client was only present on Monday, Wednesday and Friday of a week, the defendant would bill for services for every day of that week even when the client was absent); billing for clients who were physically present at and receiving services in some other facility that day (such as a psychiatric residential treatment facility), and; billing for services on days when the Extended Reach facility was actually closed – such as a snow day on February 17, 2015, and on Labor Day of 2014.
PURNELL also engaged in a scheme to bill for psychotherapy services as if they had been performed by a licensed medical doctor, when those services were not provided by the doctor for Extended Reach. Investigators interviewed the doctor and he informed the investigators that he did not perform psychotherapy services for Extended Reach.
The total fraudulent billing for all schemes is $372,917.74. The total loss amount due to Medicaid is $337,615.42.
United States Attorney Higdon commented: “Medicaid beneficiaries face complex and costly needs for care and rely on, and trust, their health care providers to provide quality care. This defendant violated their trust by using their information to unlawfully line her pockets with money. This should never happen. The USAO-EDNC will continue to thoroughly investigate and prosecute to the fullest those who commit health care fraud to unlawfully obtain money to which they are not entitled.”
The investigation of this case was conducted by the United States Department of Health and Human Services Office of the Inspector General, and the North Carolina Attorney General’s Office Medicaid Investigations Division. Special Assistant United State Attorney, Daniel Spillman, of the North Carolina Attorney General’s Office Medicaid Investigations Division, represented the United States.
Maryland Man Pleads Guilty to Fraud Scheme and Making a False Statement to the FBIRead the Press Release
WASHINGTON – James Benjamin, 57, of Ellicott City, Maryland, pled guilty yesterday to a federal charge stemming from making a false statement to the FBI, and to a District of Columbia charge stemming from a scheme to defraud individuals that trusted the defendant to invest money on their behalf announced U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
Benjamin pled guilty before the Honorable Paul L. Friedman in the United States District Court for the District of Columbia to engaging in a scheme with intent to defraud, and to obtaining money by means of materially false and fraudulent pretenses, representations, and promises, and to unlawfully obtaining over $100,000 for his own personal enrichment. Benjamin also pled guilty to making a false statement to the FBI, after the FBI had seized approximately $450,000 that Benjamin had obtained from investors. In connection with the guilty plea, Benjamin admitted that he had falsely told the FBI that the $450,000 had been “held in trust” for the benefit of an investor, when in fact Benjamin kept the funds in his own bank account. Judge Friedman scheduled a sentencing hearing for September 24, 2019, at which Benjamin faces statutory maximum sentences of ten years and five years in prison, respectively.
In announcing the plea, U.S. Attorney Liu and Assistant Director in Charge McNamara commended the work of those who investigated the case from the FBI’s Washington Field Office. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office including Paralegal Specialists Jessica McCormick and Chela Okonji, and Assistant U.S. Attorneys Demian Ahn and Thomas Swanton, who prosecuted the case.
Manhattan Jeweler Pleads Guilty to Insider TradingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JEREMY MILLUL pled guilty to participating in a scheme to trade on material, nonpublic information in advance of the Sherwin-Williams Company’s acquisition of the Valspar Corporation. MILLUL pled guilty to one count of conspiracy to commit securities fraud before U.S. District Judge Jed S. Rakoff.
U.S. Attorney Geoffrey Berman said: “As he admitted today, Manhattan jeweler Jeremy Millul received inside information about a publicly traded stock from a friend who worked as an analyst for a credit rating agency. Millul then used that information to make illegal trades which earned him over $100,000 in illicit gains. The integrity of financial institutions is critical to ensuring that the stock-buying public is trading in a fair market. We will continue to aggressively prosecute those who share and utilize nonpublic information for their own personal gain.”
According to the allegations contained in the Complaint and Indictment filed against MILLUL and his co-conspirators, and statements made in related court filings and proceedings:[1]
Rating Evaluation Services and the Insider
When a company announces an acquisition, the acquiring company’s credit rating agency often evaluates, and ultimately issues a press release relating to, the impact that the acquisition could have on the acquiring company’s credit rating. Therefore, companies often contact rating agencies before an acquisition is publicly announced in order to secure the rating agency’s views on how a possible acquisition could impact a company’s credit rating. All the major rating agencies offer a service – sometimes known as a Rating Evaluation Service (“RES”) – that provides the company with a rating committee decision with respect to a proposed acquisition.
In March 2016, a credit rating agency in Manhattan (the “Firm”) assigned a credit ratings analyst (the “Analyst”), to work on an RES for the Sherwin-Williams Company (“Sherwin-Williams”) in advance of its contemplated but unannounced acquisition of the Valspar Corporation (“Valspar”). In connection with this assignment, the Analyst had access to material, nonpublic information (the “Inside Information”) about Sherwin-Williams’ acquisition of Valspar prior to the public announcement of the acquisition. The Firm’s written policies prohibited the unauthorized disclosure of confidential information, which included the Inside Information. During his tenure at the Firm, the Analyst reviewed and certified his duties of loyalty and confidentiality to the Firm and its clients.
The Insider Trading Scheme
In March 2016, the Analyst misappropriated the Inside Information about Sherwin-Williams’ acquisition of Valspar and passed it to MILLUL and Abell Oujaddou so that they could use it to make profitable trades. On March 21, 2016, the first trading day after the public announcement of the acquisition, the price of Valspar stock increased approximately 23 percent over the prior day’s close.
MILLUL is a Manhattan jeweler who had a close personal friendship with the Analyst, as well as with a member of the Analyst’s immediate family. The Analyst repeatedly provided MILLUL with Inside Information about the Valspar acquisition. Although MILLUL had never owned a brokerage account in the United States and had never traded in U.S. securities prior to March 2016, he opened a brokerage account on March 13, 2016, and shortly thereafter purchased 480 shares of Valspar common stock. On March 18, 2016, the last trading day before the acquisition was publicly announced, MILLUL also purchased 75 out-of-the-money Valspar call options. After the acquisition was publicly announced, MILLUL sold his Valspar stock and options for approximately $106,806 in profits.
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JEREMY MILLUL, 32, of New York, New York, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court.
MILLUL is scheduled to be sentenced before Judge Rakoff on July 30, 2019 at 4:00 p.m.
Abell Oujaddou previously pled guilty and awaits sentencing before U.S. District Judge Jed S. Rakoff.
Mr. Berman praised the work of the FBI, and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Christine I. Magdo and Andrew Thomas are in charge of the prosecution.
[1] As for the defendant who has pled not guilty, the description of the charges set forth herein constitute only allegations.
Man Sentenced to Prison for $1.8 Million in Real Estate Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A Culpepper man was sentenced today to nine years in prison for operating a Ponzi scheme that took in approximately $9 million and defrauded over 20 victims of $1.8 million.
According to court documents, from 2014 through 2018, Brian Thomas Sapp, 38, formerly of Alexandria, committed wire fraud and aggravated identity theft in executing the scheme. Sapp preyed on his closest friends and their families, many of whom described Sapp as a “best friend” and “like a brother.” He caused financial hardship to many victims, including those with special needs children.
To execute the scheme, Sapp set up Novus Properties, claiming he had identified distressed single family homes in the District of Columbia, Maryland and Virginia, which he would purchase and then resell to guaranteed buyers. All he needed was investor funds to finance the property flips. On hundreds of occasions, Sapp fabricated a sophisticated set of interlocking purchase, sale, guarantee, and HUD-1 settlement documents to induce victims to part with money. He stole real identities of sellers and buyers and digitally forged their signatures hundreds of times. Sapp bragged that he was “killing it” and “dominating the market.” In reality, he never closed a single deal.
Instead, Sapp used investor money to fund a lavish lifestyle, including golf trips, meals out, and attending wealth-building seminars. Sapp spent $80,000 to purchase and customize a Mercedes van that he outfitted with special rooftop satellite TV antennas and flat screen TVs. Sapp loaded the van with professional grilling equipment, tents, food and beverage service stations, and other amenities so that he could host elaborate tailgating parties at Penn State football games, where he ate and drank with his victims at their expense, unbeknownst to them at the time.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Russell L. Carlberg prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-446.
MS-13 Member Sentenced to 26 Years in Federal Prison for His Participation in a Violent Racketeering Conspiracy, Including a Murder and Attempted MurderRead the Press Release
A Riverdale, Maryland man was sentenced to 312 months in prison, followed by five years of supervised release, for his participation in the racketeering enterprise known as La Mara Salvatrucha, or MS-13, including a murder and attempted murder.
Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur for the District of Maryland, Assistant Director in Charge Nancy McNamara of the FBI Washington Field Office (WFO)’s Safe Streets/HIDTA Task Force, Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office, Special Agent in Charge Jesse R. Fong of the U.S. Drug Enforcement Administration (DEA) Washington Field Division, Chief J. Thomas Manger of the Montgomery County Police Department, Chief Henry P. Stawinski III of the Prince George’s County Police Department, Chief Amal Awad of the Hyattsville Police Department, Prince George’s County State’s Attorney Aisha Braveboy and Montgomery County State’s Attorney John McCarthy made the announcement.
Kevin Soriana-Hernandez, aka “Brocha,” 19, of Riverdale, Maryland, was sentenced by U.S. District Judge Paula Xinis. According to the plea agreement, MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County and Prince George’s County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. MS-13 members and associates are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
“MS-13’s stock-in-trade is violence and intimidation, as shown by the brutal and premeditated murder that Kevin Soriana-Hernandez and his fellow MS-13 members committed in Riverdale on Sept. 16, 2017,” said Assistant Attorney General Benczkowski. “The Department of Justice will not rest in our mission to dismantle MS-13 and put an end to the gang’s evil efforts to terrorize our streets.”
“This sentence sends a message that the violence perpetrated by MS-13 members and associates will not be tolerated,” said U.S. Attorney Hur. “Our ongoing work with our law enforcement partners to bring other gang members to justice, demonstrates our unflagging commitment to eliminate MS-13 and its campaign of wanton violence.”
As detailed in his plea agreement, Soriana-Hernandez admitted that since at least September 2017, he was a member and associate of the Sailors clique of MS-13, in Riverdale, Maryland. Beginning in approximately August 2017, members of the Sailors clique, including Soriana-Hernandez, engaged in an ongoing and escalating altercation with a group of individuals also residing in Riverdale, whom they believed to be members of a rival gang. The two groups threatened each other with physical violence, brandished firearms, and shot at each other.
Soriana-Hernandez also admitted that on Sept. 16, 2017, he and other MS-13 members and associates planned and conspired to murder individuals in the rival group. Specifically, Soriana-Hernandez admitted that on Sept. 16, 2017, he and four co-conspirators drove to the area in Riverdale where two of the suspected gang rivals were located, and parked on a hill overlooking the area. Soriana-Hernandez and two co-conspirators covered their faces and proceeded down the hill toward the location. At the time, one victim was seated in a car and the other was near the car. Soriana-Hernandez fired multiple shots at the car and at both victims, but did not strike either victim. One co-conspirator fired a single shot at the victim who was sitting in the car, after which the firearm jammed. Another co-conspirator then approached the vehicle and stabbed that victim multiple times. The victim later died. According to the Office of the Chief Medical Examiner, the victim died from a single gunshot wound and 13 stab wounds.
Five of Soriana-Hernandez’s co-defendants remain charged in the eighth superseding indictment with various racketeering violations, including conspiracy to participate in a racketeering enterprise, murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, drug trafficking conspiracy and extortion conspiracy. The trial of the remaining defendants is scheduled to begin on Jan. 6, 2020. Those defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by the FBI Washington Field Office, HSI Baltimore, the DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the Hyattsville Police Department, the Prince George’s State’s Attorney’s Office and the Montgomery County State’s Attorney’s Office. The WFO’s Safe Streets/HIDTA Task Force is composed of FBI agents along with detectives from the Capital Region engaged in identifying, disrupting and dismantling the most prolific gangs in the region to include MS-13. Trial Attorneys Francesca Liquori and Julie Finocchiaro of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Catherine K. Dick of the District of Maryland are prosecuting this Organized Crime Drug Enforcement Task Force case.
MS-13 Member Sentenced to 26 Years in Federal Prison for His Participation in a Violent Racketeering Conspiracy, Including a Murder and Attempted MurderRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Kevin Soriana-Hernandez, a/k/a “Brocha,” age 19, of Riverdale, Maryland, today to 26 years in federal prison, followed by five years of supervised release, for his participation in the racketeering enterprise known as La Mara Salvatrucha, or MS-13, including a murder and attempted murder.
The sentence was announced by U.S. Attorney Robert K. Hur for the District of Maryland, Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, Assistant Director in Charge Nancy McNamara of the FBI Washington Field Office’s Safe Streets/HIDTA Task Force, Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office, Special Agent in Charge Jesse R. Fong of the U.S. Drug Enforcement Administration (DEA) Washington Field Division, Chief J. Thomas Manger of the Montgomery County Police Department, Chief Henry P. Stawinski III of the Prince George’s County Police Department, Chief Amal Awad of the Hyattsville Police Department, Prince George’s County State’s Attorney Aisha Braveboy; and Montgomery County State’s Attorney John McCarthy.
“This sentence sends a message that the violence perpetrated by MS-13 members and associates will not be tolerated,” said United States Attorney Robert K. Hur. “Our ongoing work with our law enforcement partners to bring other gang members to justice, demonstrates our unflagging commitment to eliminate MS-13 and its campaign of wanton violence.”
“MS-13’s stock-in-trade is violence and intimidation, as shown by the brutal and premeditated murder that Kevin Soriana-Hernandez and his fellow MS-13 members committed in Riverdale on Sept. 16, 2017,” said Assistant Attorney General Benczkowski. “The Department of Justice will not rest in our mission to dismantle MS-13 and put an end to the gang’s evil efforts to terrorize our streets.”
According to the plea agreement, MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County and Prince George’s County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. MS-13 members and associates are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
As detailed in his plea agreement, Soriana-Hernandez admitted that since at least September 2017, he was a member and associate of the Sailors clique of MS-13, in Riverdale, Maryland. Beginning in approximately August 2017, members of the Sailors clique, including Soriana-Hernandez, engaged in an ongoing and escalating altercation with a group of individuals also residing in Riverdale, whom they believed to be members of a rival gang. The two groups threatened each other with physical violence, brandished firearms, and shot at each other.
Soriana-Hernandez also admitted that on September 16, 2017, he and other MS-13 members and associates planned and conspired to murder individuals in the rival group. Specifically, Soriana-Hernandez admitted that on September 16, 2017, he and four co-conspirators drove to the area in Riverdale where two of the suspected gang rivals were located, and parked on a hill overlooking the area. Soriana-Hernandez and two co-conspirators covered their faces and proceeded down the hill toward the location. At the time, one victim was seated in a car and the other was near the car. Soriana-Hernandez fired multiple shots at the car and at both victims, but did not strike either victim. One co-conspirator fired a single shot at the victim who was sitting in the car, after which the firearm jammed. Another co-conspirator then approached the vehicle and stabbed that victim multiple times. The victim later died. According to the Office of the Chief Medical Examiner, the victim died from a single gunshot wound and 13 stab wounds.
Five of Soriana-Hernandez’s co-defendants remain charged in the eighth superseding indictment with various racketeering violations, including conspiracy to participate in a racketeering enterprise, murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, drug trafficking conspiracy, and extortion conspiracy. The trial of the remaining defendants is scheduled to begin on January 6, 2020. Those defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski commended the FBI Washington Field Office’s Safe Streets/HIDTA Task Force, HSI Baltimore, the DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the Hyattsville Police Department, the Prince George’s County State’s Attorney’s Office, and the Montgomery County State’s Attorney’s Office for their work in the investigation. The WFO’s Safe Streets/HIDTA Task Force is composed of FBI Agents along with Detectives from the Capital Region engaged in identifying, disrupting and dismantling the most prolific gangs in the region to include MS-13.
Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorneys William D. Moomau and Catherine K. Dick and Trial Attorneys Francesca Liquori and Julie Finocchiaro of the Criminal Division’s Organized Crime and Gang Section, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Lewiston Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Demetrius Davenport, 30, of Lewiston, pled guilty today in U.S. District Court to being a felon in possession of a firearm.
According to court records, in June 2018, Davenport travelled to Gray, Maine, where he rented a firearm, purchased ammunition, and fired the weapon at a shooting range. Investigators identified Davenport and the shooting range from a video that was uploaded to YouTube. Davenport was prohibited from possessing the firearm as a result of two prior felony convictions for illegal possession of firearms and theft.
Davenport faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lewiston Police Department.
Lempster Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
CONCORD - Jesse R. Lohman, 37, of Lempster, pleaded guilty in federal court to possession of methamphetamine with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on August 31, 2018, police encountered Lohman in the driver’s seat of a parked car at the Route 3A Park and Ride parking lot in Bow, New Hampshire. Lohman was alone in the car. After determining that there was a warrant for Lohman’s arrest, officers detained him and impounded the car. During a subsequent search of the car, officers discovered six bags containing approximately 76.1 grams of 99 percent pure methamphetamine.
Lohman is scheduled to be sentenced on July 12, 2019.
“Methamphetamine is a very dangerous drug that is appearing with more frequency in New Hampshire,” said U.S. Attorney Murray. “Because of the dangers associated with this substance, we will work closely with our law enforcement partners to identify and prosecute those who are responsible for distributing methamphetamine. I am grateful to the police offices from Bow whose efforts prevented a significant amount of highly-pure methamphetamine from being sold in our community.”
This matter was investigated by the Federal Bureau of Investigation and the Bow Police Department. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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Leader of Old York Money Gang Sentenced to Life in Federal Prison and Gang Member Sentenced to 30 Years in Federal Prison for Charges Related to Their Gang Activities, Including Racketeering Murder, Drug Conspiracy, Drug Dealing, and Gun CrimesRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Trevon Beasley, a/k/a Tre, age 25, of Baltimore, to life in federal prison and on March 28, 2019, sentenced Darrin Mosley, a/k/a Legs and Scoop, age 25, also of Baltimore, to 30 years in federal prison, each followed by five years of supervised release. Beasley was convicted after a 12-day jury trial on federal racketeering charges, including murders he committed, related to his membership in the Old York Money Gang (OYMG); a federal drug distribution conspiracy; conspiracy to use and carry a firearm during and in relation to a crime of violence and a drug trafficking crime; and eight counts of distribution and possession with intent to distribute crack cocaine, powder cocaine, and/or heroin.
Just prior to trial, Mosley pleaded guilty to the racketeering and drug conspiracies, and to conspiracy to use and carry a firearm during and in relation to a crime of violence and a drug trafficking crime. While Mosley did not admit to any violent acts committed by himself or other gang members, the sentencing Court held that the evidence – including evidence presented by the government at Beasley’s trial, court documents, and other evidence – proved that as part of his gang activities, Mosley participated in and knew about murders committed by OYMG gang members.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
“OYMG gang members and other violent drug dealers must know that gun crime will lead to federal time, which has no parole – ever,” said U.S. Attorney Robert K. Hur. “I hope the community will take some comfort from the fact that we are holding accountable the criminals who turned their Northeast Baltimore neighborhood into a war zone.”
“This gang used firearms to defend and expand their drug territory, committing numerous violent crimes in pursuit of that goal,” said ATF Baltimore Special Agent in Charge Rob Cekada. “Fear of being caught in the crossfire of a gang turf war is a terrible reality that affects too many in Baltimore. ATF is determined to identify, investigate, and incarcerate this city’s most vicious criminals so that neighborhoods can be free of violence.”
According to the evidence presented at Beasley’s trial, Mosley’s plea agreement, and other court documents, from January 2013 to April 2017, Beasley and Mosley were members of the OYMG, a violent drug trafficking organization operating in the Waverly neighborhood in the northeastern district of Baltimore. OYMG was involved in criminal activity including murder, robbery, extortion, burglary, and narcotics trafficking in and around Baltimore. OYMG is a neighborhood gang, limiting its membership to persons that originate from or live in the Waverly neighborhood, and generally excluding “outsiders.” The gang extensively and frequently endorsed and promoted its existence through social media accounts and rap music videos, whereby members would display their association and advertise membership and activities of the gang. OYMG sustained itself in part through drug sales, including crack cocaine, as well as through murder for hire and other violent crimes.
The evidence elicited at trial showed that Trevon Beasley occupied a leadership role in the gang, which obtained its revenue from murder for hire and drug distribution. Mosley admitted that he distributed marijuana, crack cocaine and heroin and was heard on recorded jail calls discussing the distribution and supply of crack cocaine, prescription pills, and marijuana. Witnesses at trial testified that OYMG accepted money for contract killings as part of its business, and that Beasley specifically accepted and executed the contract murder of Tyrone Servance on November 15, 2016. Further, witnesses testified that Mosley drove Beasley to and from the murder. Recorded jail calls between Beasley and Mosley discuss the fallout from that contract killing. Witnesses testified that after the homicide, associates of the victim engaged in a war with OYMG over the next weeks. This culminated in two additional attempted murder of two other people on December 1, 2016, within weeks of the Servance murder. Beasley and Mosley believed that one of the December 1 victims had been hired to avenge the death of Mr. Servance. The other December 1 victim was simply an innocent person who happened to be in the first victim’s company. Those murders were planned and carried out by Beasley and Mosely. In Mosley’s own words, on his own social media, Beasley was Mosley’s own “shooter,” and Mosley was proud to pronounce Beasley as such. Other OYMG members regularly carried firearms to defend the gang’s territory and violently expelled OYMG rivals or antagonists.
Nine other defendants charged in the case previously pleaded guilty to racketeering and/or drug conspiracy charges and eight have been sentenced.
The final defendant to be sentenced, Terrell Plummer, a/k/a Rell, age 30, of Baltimore, is scheduled for sentencing on May 10, 2019. At his guilty plea on November 2, 2018, Plummer admitted that he shot and killed three-year-old McKenzie Elliott during a shoot-out, as she stood on the front porch of her home.
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 U.S. Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys David Metcalf and Michael C. Hanlon, who are prosecuting the case.
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Law Enforcement Officers Charged in Federal Court with Taking Bribes to Falsify Immigration Documents and Protect Drug Trafficking ProceedsRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that nine individuals, including seven law enforcement officers, have been indicted in federal court in South Carolina on visa fraud and drug charges.
One of the schemes alleged in the Indictment involved fraudulent U Nonimmigrant Visas (“U-Visas”), which are set aside for victims of certain crimes who have suffered mental or physical abuse as a result of the crime. To obtain a U-Visa, a law enforcement official must certify that the alien is assisting that law enforcement agency in the investigation or prosecution of the crime of which the alien was a victim. According to the Indictment, four officers helped individuals obtain fraudulent U-Visas by taking bribes for fraudulent certifications and creating fraudulent incident reports indicating that aliens were victims of crimes.
The Indictment further alleges that officers took bribes in exchange for protecting methamphetamine and cocaine or the proceeds of drug trafficking.
The charges as to each defendant are:
Springfield Police Department Chief Lacra Sharod Jenkins: Conspiracy, Visa Fraud, Conspiracy to Possess with Intent to Distribute Controlled Substances, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
Springfield Police Department Officer Allan Hunter, Jr.: Conspiracy, Visa Fraud, Conspiracy to Possess with Intent to Distribute Controlled Substances, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
Orangeburg County Sheriff’s Office Deputy Carolyn Colter Franklin: Conspiracy, Visa Fraud, Conspiracy to Possess with Intent to Distribute Controlled Substances, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
Orangeburg County Sheriff’s Office Deputy Nathaniel Miller Shazier, III: Conspiracy, Conspiracy to Possess with Intent to Distribute Controlled Substances, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Orangeburg County Sheriff’s Office Deputy Stanley Lavalle Timmons: Conspiracy, Conspiracy to Possess with Intent to Distribute Controlled Substances, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
Orangeburg County Sheriff’s Office Reserve Deputy James Albert Tucker: Conspiracy, Conspiracy to Possess with Intent to Distribute Controlled Substances, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
Orangeburg County Sheriff’s Office Deputy Willie Paul David Rogers: Conspiracy and Visa Fraud;
Saurabhkumar B. Patel, of Orangeburg, South Carolina: Conspiracy; and
Tarang Patel, of Newport, Kentucky: Conspiracy and Visa Fraud.
If convicted, Jenkins, Hunter, Franklin, Timmons, Shazier, and Tucker face a maximum penalty of life in federal prison. Rogers, Saurabhkumar Patel, and Tarang Patel face a maximum penalty of 10 years imprisonment.
“With this Indictment, we honor the hard work and dedication of the very fine officers across South Carolina who put on the police uniform every day and risk their lives to protect the rest of us,” said U.S. Attorney Lydon. “If these allegations are proved, these defendants do not deserve to wear the badge and should not be allowed to bring disrepute on the overwhelming majority of men and women in blue who serve South Carolina with integrity. We will not tolerate the hypocrisy of those who would pretend to enforce the law, while violating it themselves as they seek to line their own pockets. We call that public corruption, and we will always call it out.”
The investigation was led by the Federal Bureau of Investigation, with assistance from ICE - Homeland Security Investigations and the South Carolina Law Enforcement Division. The case is being prosecuted by Assistant United States Attorneys William Camden Lewis and Alyssa Leigh Richardson of the Columbia office.
U.S. Attorney Lydon stated that all charges in the Indictment are merely accusations, and all defendants are presumed innocent until and unless proven guilty.
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20190328-2_-_indictment.pdfLancaster County Man Pleads Guilty to Federal Court to Illegally Possessing a GunRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Deangelo Raheem Roseboro, age 25, of Lancaster, South Carolina, entered a guilty plea in federal court to possession of a firearm by a person who had been convicted of a crime punishable by imprisonment for a year. United States District Judge J. Michelle Childs of Columbia accepted the guilty plea and will impose sentence after she has received and reviewed a presentence report prepared by the United States Probation Office.
Evidence presented to the court established that on December 6, 2017, a Lancaster County deputy made a routine traffic stop on a vehicle driven by Roseboro. As the deputy approached the vehicle, he saw Roseboro reaching in the floor board of the passenger side of the vehicle. The deputy asked Roseboro for his driver’s license, insurance, and registration. Roseboro stated the car belonged to his uncle and that he only had a driver’s permit, which he did not have with him. The deputy told Roseboro that he smelled marijuana and asked why he was reaching into the floorboard of the vehicle. Roseboro told the deputy that there was no marijuana in the car but that there was a gun in the car that belonged to his uncle. As the deputy tried to get Roseboro out of the car to detain him, Roseboro ran away. After a brief search, Roseboro was found hiding in a friend’s apartment. Deputies searched the vehicle and found a fully loaded SCCY, model CPX-1, 9mm pistol. Federal law prohibits Roseboro from possessing firearms and ammunition based on a previous conviction for his involvement in the murder of a Chester City councilman.
Roseboro faces a maximum penalty of 10 years in federal prison and/or a fine of $250,000.
The case was investigated by agents of the Federal Bureau of Investigation and the Lancaster County Sheriff's Office and was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney William K. Witherspoon of the Columbia office is prosecuting the case.
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Kansas Man Sentenced to Nearly 18 Years in Prison for Use of Child Pornography in Southeast Asia with Intent to Import into the United StatesRead the Press Release
A retired Kansas native, who was residing in Panama, was sentenced today to 210 months in prison, for use of sexually explicit depictions of a minor for importation into the United States, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas.
Jebediah Dishman, 72, of Fredonia, Kansas, pleaded guilty on April 6, 2018, to an information charging him with use of sexually explicit depictions of a minor for importation into the United States. Today, U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas imposed the nearly 18-year sentence to be followed by 25 years of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. At the hearing today, he was also ordered to pay a $5,000 fine and $3,000 in restitution. Dishman will also be ordered to register as a sex offender.
According to admissions made in conjunction with a plea agreement, in September 2014, Dishman began an approximately six-month trip to several countries in Southeast Asia. During his trip to Indonesia, another tourist observed Dishman engaging in suspicious interactions with minors, masturbating while watching minors and using a tablet to take photographs of a three-year-old German child. The tourist confronted Dishman, seized his tablet and turned it over to local authorities. U.S. law enforcement later reviewed the tablet pursuant to a search warrant and discovered sexually explicit images of minors, including the German child, as well as internet searches indicating an interest in the sex trafficking of minors in Southeast Asia.
The FBI Houston Field Office conducted the investigation with the cooperation of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Trial Attorneys James E. Burke IV and William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Sherri Zack of the Southern District of Texas prosecuted the case. Assistant U.S. Attorney Elly Peirson of the Central District of Illinois, previously on detail at CEOS, also served as a vital member of the prosecution team at earlier stages of the litigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Kansas Man Sentenced in Texas for Use of Child Pornography in Southeast Asia with Intent to Import into the U.S.Read the Press Release
HOUSTON - A retired Kansas native who was residing in Panama has been ordered to serve a 210-month prison term, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Jebediah Dishman, 72, of Fredonia, Kansas, pleaded guilty April 6, 2018, to an information charging him with use of sexually explicit depictions of a minor for importation into the United States. Today, U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas imposed the nearly 18-year sentence to be followed by 25 years of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. At the hearing today, he was further ordered to pay a $5,000 fine and $3,000 in restitution. Dishman will also be ordered to register as a sex offender.
According to admissions made in conjunction with a plea agreement, in September 2014, Dishman began an approximately six-month trip to several countries in Southeast Asia. During his trip to Indonesia, another tourist observed Dishman engaging in suspicious interactions with minors, masturbating while watching minors and using a tablet to take photographs of a three-year-old German child. The tourist confronted Dishman, seized his tablet and turned it over to local authorities. U.S. law enforcement later reviewed the tablet pursuant to a search warrant and discovered sexually explicit images of minors, including the German child, as well as internet searches indicating an interest in the sex trafficking of minors in Southeast Asia.
The FBI conducted the investigation with the cooperation of Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant U.S. Attorney (AUSA) Sherri Zack is prosecuting the case along with Trial Attorneys James E. Burke IV and William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). and of the Southern District of Texas prosecuted the case. AUSA Elly Peirson of the Central District of Illinois, previously on detail at CEOS, also served as a vital member of the prosecution team at earlier stages of the litigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jury Convicts Crew in Murder of Armored Car GuardRead the Press Release
HOUSTON – A federal jury in Houston has just returned guilty verdicts on all counts as charged against four men involved in the murder of a Brinks armored car guard, among other charges, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for approximately eight hours following a nine-day trial before convicting Nelson Alexander Polk, 40, Marc Anthony Hill, 48, John Edward Scott, 43, and Bennie Charles Phillips Jr., 31, all of Houston.
All four were convicted of attempted interference with commerce by robbery and aiding and abetting discharge of a firearm during a crime of violence. The jury also convicted Hill and Polk of aiding and abetting interference with commerce by robbery and aiding and abetting discharge of a firearm during a crime of violence causing the death of another.
The trial centered on the robbery and murder of a Brinks armored car guard on Aug. 29, 2016, at Wells Fargo Bank located at 13120 Northwest Freeway as well as the attempted robbery of a Loomis armored car guard at Amegy Bank located at 400 N Sam Houston Pkwy E on Dec. 7, 2016.
At trial, the jury heard that a now-deceased individual had allegedly led the robbery crew, which would conduct extensive surveillance of banks’ ATMs and armored car routes before executing the robberies. According to testimony, the plan involved the leader lying in wait for the guard to begin service of the ATM. He would then shoot the guard from a distance with a high caliber rifle so another member of the robbery crew could pull up and take the money.
The jury heard that in the August robbery and murder, the leader of the crew allegedly shot and killed the guard. Polk then drove a vehicle up to the guard, at which time another crew member got out and took the Brinks’ bag of money. Hill had been in the area conducting surveillance.
The men played the same roles in December Amegy robbery attempt. The jury heard that law enforcement watched and listened to calls over the leader’s phone as they prepared to rob the Loomis guard. He and Hill spent hours and took shifts surveilling the bank. On the date of the attempted robbery, the crew leader sat across from the ATM in an apartment complex parking lot ready to take his shot.
When law enforcement moved in to arrest the subjects, the crew leader allegedly came out firing his weapon and police responded, killing him.
On that day, Polk and Trayvees Duncan Bush, 31, also of Houston, sat ready to drive up to the slain guard to steal the money. Phillips recruited Bush and ensured he would be ready on the morning of Dec. 7. Hill was nearby conducting surveillance and would meet up with Polk and Bush to provide them a different getaway vehicle. Scott was further away from the Amegy bank doing surveillance and watching for the armored truck to approach the location.
The jury also heard dozens of wiretap calls as the defendants planned the attempted robbery of the armored truck, which they frequently referred to as commissary or Bentley. They saw video and heard audio from a recording device placed in the Jeep Cherokee the crew leader had allegedly stolen for purposes of the crime. The jury was able to watch and hear as he set up his rifle shot from the back seat and placed mylar over the driver side window to avoid deflecting the bullet.
Testimony also included a cell site location expert who tracked phone locations of the crew leader, Hill and Polk in the weeks leading up to the August murder and robbery. He was able to show how Hill and Polk played similar roles, surveilling the bank and being near the bank during the time of the murder and robbery.
The defense claimed the deceased crew leader planned the whole thing and they had no knowledge of his intentions. Further, Polk and Hill argued that they were not there during the August robbery and murder. The jury was not convinced and convicted them on all counts as charged.
All of the defendants convicted today face up to 20 years for the robbery and another 10-year-minimum and up to life for the firearms charge which must be served consecutively to any other prison term imposed. Hill and Polk face the same terms for the additional charges for which they were convicted.
U.S. District Judge Hittner presided over the trial.
They will remain in custody pending their sentencing.
Bush had pleaded guilty prior to trial.
The FBI, Houston Police Department and ATF conducted the investigation. Assistant U.S. Attorneys Heather Winter and Richard Hanes are prosecuting the case.
The case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
They were brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges and indictments handed down by the Grand Jury were unsealed. Indictments are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on March 25 was:
DYLAN BLAKE LAPLANT, 21, of Arlee, on charges of distribution of child pornography and receipt of child pornography. LaPlant is detained. If convicted of the most serious crime, LaPlant faces a five years to 20 years in prison, a $250,000 fine and five years to life of supervised release. The FBI investigated the case. Pacer case reference. 19-13.
ISSAC ELIAS SAENZ, 27, of Box Elder, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime. Saenz is detained. If convicted of the most serious crime, Saenz faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. The FBI and Tri-Agency Drug Task Force investigated the case. Pacer case reference. 19-18.
JOSE DANIEL LOZOYA-CAMACHO, 25, of Mexico, on charges of illegal re-entry of a deported alien. Lozoya-Camacho is detained. If convicted of the most serious crime, Lozoya-Camaco faces a maximum two years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the U.S. Border Patrol. Pacer case reference. 19-14.
LUIS RAUL LOZOYA-CAMACHO, 29, of Mexico, on charges of illegal re-entry of a deported alien. Lozoya-Camacho is detained. If convicted of the most serious crime, Lozoya-Camacho faces a maximum two years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the U.S. Border Patrol. Pacer case reference. 19-14.
Appearing on March 28 was:
LAWRENCE MATTHEW BRASDA, 27, on charges of prohibited person in possession of a firearm and possession of a stolen firearm. If convicted of the most serious crime, Brasda faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. He was detained. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 17-47.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on March 26 was:
JACK PRESTON COVERSUP, 56, of Moiese, on charges of sexual abuse of a minor and abusive sexual contact. If convicted of the most serious crime, Coversup faces a maximum life in prison, a $250,000 fine and five years to life of supervised release. Coversup was released pending trial. The case was investigated by the FBI. Pacer case reference. 19-15.
CAMERON RIDESTHEHORSE, 35, of Lodge Grass, on charges of failure to register as a sexual offender. If convicted of the most serious crime, Ridesthehorse faces a maximum 10 years in prison, a $250,000 fine and five years to life of supervised release. Ridesthehorse was detained. The case was investigated by the U.S. Marshals Service. Pacer case reference. 19-37.
Appearing in Billings for an initial hearing on a complaint before U.S. Magistrate Judge Timothy J. Cavan on March 26 was:
JEREMY AARON SCHULER, 31, of Bellevue, WA, on charges of possession with intent to distribute controlled substances. If convicted of the most serious crime, Schuler faces a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. He was detained. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 19-29.
Appearing in Billings and pleading not guilty before U.S. Magistrate Judge Timothy J. Cavan on March 27 was:
FRANKLIN NORTON, 41, of Billings, on charges of conspiracy to possess methamphetamine with intent to distribute and possession with intent to distribute meth. If convicted of the most serious crime, Norton faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. Norton was detained. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-35.
Appearing on March 28 was:
DANA BEARROBE, 39, of Busby, on charges of failure to register as a sex offender. If convicted of the most serious crime, Bearrobe faces a maximum 10 years in prison, a $250,000 fine and five years of supervised release. He was detained. The case was investigated by the U.S. Marshal’s Service. Pacer case reference. 19-38.
DANIEL MARK TANNER, 32, of Cut Bank, on charges of abusive sexual contact. If convicted of the most serious crime, Tanner faces a maximum of life in prison, a $250,000 fine and five years of supervised release. He was detained. The case was investigated by the FBI. Pacer case reference. 19-19.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Informational: Federal Court appearanceRead the Press Release
The U.S. Attorney’s Office announced that the following person had an initial appearance today in Missoula before U.S. Magistrate Jeremiah C. Lynch on a criminal complaint. Criminal complaints are merely accusations and defendants are presumed innocent until proven guilty.
CHARLES GIBSON BAILEY, 32, of West Yellowstone, on charges of possession of a firearm by a person who is subject to a court order that restrains such person from harassing, stalking or threatening an intimate partner of such person. If convicted of the most serious crime, Bailey faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Bailey was detained. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Yellowstone Police Department. Pacer case reference. 19-26-m-JCL.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Honduran National Arrested for Illegally Reentering the United States Following DeportationRead the Press Release
A criminal complaint was filed today in federal court in Central Islip charging Gerson Eli Turcios Maradiaga with illegal reentry into the United States. The defendant was arrested Thursday and made his initial appearance this afternoon before United States Magistrate Judge Arlene R. Lindsay at the federal courthouse in Central Islip.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Thomas R. Decker, Field Office Director, U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), announced the arrest.
“As alleged, Turcios illegally returned to the United States after his deportation for a homicide conviction,” stated United States Attorney Donoghue. “This Office will prosecute felons who reenter the United States. The message to deported felons is clear – if you are deported from the United States, stay out or the only thing you will be returning to is prison.” Mr. Donoghue expressed his appreciation to the Nassau County Police Department and the United States Marshals NY/NJ Regional Fugitive Task Force, Long Island Division, for their assistance with the case.
Turcios has a felony conviction and was sentenced in the United States before being removed to his home country,” stated ERO New York Field Director Decker. “This case is one of a convicted criminal who re-entered the country illegally, only to be right back in our New York neighborhoods. ERO officers will continue to seek out those criminals aliens who enter the country with no regard for the laws of this nation, protecting the public with steadfastness and professionalism.”
According to the complaint, Turcios, a Honduran national, was deported from the United States in November 2012, after having been convicted in December 2008 of manslaughter in connection with the February 17, 2008 shooting outside Don Juan’s La Boom Club in Westbury, New York, killing one and wounding several others. At the time of the shooting, the defendant was a member of the 18th Street gang.
If convicted, Turcios faces a maximum term of imprisonment of 20 years’ incarceration.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Catherine M. Mirabile is in charge of the prosecution.
The Defendant:
GERSON ELI TURCIOS MARADIAGA
Age: 28
Levittown, New YorkE.D.N.Y. Docket No. 19-MJ-289 (ARL)
Grant County man admits to methamphetamine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Robert Lee Pauley, Jr., of Mount Storm, West Virginia, has admitted to methamphetamine distribution, United States Attorney Bill Powell announced.
Pauley, age 40, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” Pauley admitted to working with others to distribute more than 500 grams of methamphetamine from March 2018 to May 2018 in Mineral, Grant, and Randolph Counties.Pauley faces not less than ten years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Federal Bureau of Investigation; the Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; and the Ravenswood Police Department investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Georgia Man Found Guilty for His Involvement in Methamphetamine Distribution RingRead the Press Release
Montgomery, Alabama – On Thursday, March 28, 2019, Dennis Reinaldo Peralta, 38, of Lawrenceville, Georgia, was found guilty of conspiracy to sell methamphetamine, announced U.S. Attorney Louis V. Franklin, Sr.
According to the evidence presented at trial, Peralta was working in concert with many others to bring drugs to the Southeast, including Alabama. The overall conspiracy was importing large of amounts of methamphetamine from Mexico, and then distributing those drugs out of the Atlanta area. The conspirators would sometimes possess 30 kilograms (66 pounds) or more of methamphetamine at a time to be available for distribution. The jury heard testimony that Peralta himself sold one kilogram (2.2 pounds) of methamphetamine on one occasion as a part of the overall conspiracy.
The investigation also revealed that at least five kilograms (11 pounds) was distributed to one of Peralta’s co-conspirators, Bryant Pouncy, who would then sell it to various drug users in Enterprise and the greater Wiregrass Region with the assistance of others.
During this investigation, at least seven additional co-conspirators were identified and charged. Each of the following have pled guilty and are awaiting sentencing.
- Bryant Pouncy of Enterprise, Alabama
- Antonio Pouncy of Enterprise, Alabama
- Kimberly Pouncy of Enterprise, Alabama
- Ervin Bradham of Enterprise, Alabama
- Lynn Donaldson of Enterprise, Alabama
- Santos Rivera-Fernandez of Atlanta, Georgia
- Rogelio Israel Pimentel of Rex, Georgia
Each of the defendants, including Peralta, are now facing a minimum sentence of ten years in prison, and a maximum sentence of life. There is no parole in the federal system. All of the defendants are currently in the custody of the United States Marshals Service pending their sentencing hearing, which is expected to occur in the next few months.
U.S. Attorney Franklin would like to thank the following entities for their assistance in investigating this case: the Federal Bureau of Investigation (FBI), the Enterprise Police Department, the Houston County Sherriff’s Office, the Dothan Police Department, the Coffee County Sheriff’s Office, the Alabama Law Enforcement Agency (ALEA), Homeland Security Investigations (HSI), the Coffee County District Attorney’s Office, the Georgia Highway Patrol, the Clayton County (Georgia) Police Department, and the Drug Enforcement Administration (DEA). This case was prosecuted by Assistant United States Attorneys Bradley Bodiford and Curtis Ivy.
Fresenius Medical Care Agrees to Pay $231 Million to Resolve Foreign Corrupt Practices Act ChargesRead the Press Release
BOSTON – Fresenius Medical Care AG & Co. KGaA (Fresenius), a German-based provider of medical products and services, has agreed to pay approximately $231 million to resolve the Department of Justice (DOJ) and Securities and Exchange Commission’s (SEC) investigation into violations of the Foreign Corrupt Practices Act (FCPA) in connection with Fresenius’s participation in various corrupt schemes to obtain business in multiple countries.
“Bribery, in all forms, is corrosive and illegal,” said United States Attorney Andrew E. Lelling of the District of Massachusetts. “As today’s announcement makes clear, this Office will continue its long tradition of aggressively investigating companies and individuals who use bribes and kickbacks to gain an unfair and illicit business advantage, or who deliberately turn a blind eye to that conduct.”
“Fresenius doled out millions of dollars in bribes across the globe to gain a competitive advantage in the medical services industry, profiting to the tune of over $140 million,” said Assistant Attorney General Benczkowski. “Today’s resolution, under which Fresenius has agreed to retain an independent compliance monitor for at least two years, reflects the Department’s firm commitment to both rooting out bribery and promoting the kind of effective corporate compliance programs that will prevent misconduct going forward.”
“This case shows the continued commitment of the FBI and our partners to investigate bribery and corruption worldwide,” said FBI Assistant Director Robert Johnson. “The FBI's dedicated International Corruption Squads across the United States will continue to combat foreign corruption that reaches our shores and send a strong message that, no matter how long it takes, we will not wane in our efforts to uphold the law.”
“This case shows the FBI will hold accountable those who treat corruption as the cost of doing business,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Fresenius’s admissions are incredibly concerning because no company should break the law by paying-off international partners to obtain or retain business. We will continue to work with our law enforcement partners to root out corrupt schemes and ensure they do not become common practice at the expense of other hard-working businesses.”
According to Fresenius’s admissions, between 2007 and 2016, the company paid bribes to publicly-employed health and/or government officials to obtain or retain business in Angola and Saudi Arabia. In Angola and Saudi Arabia, as well as in Morocco, Spain, Turkey, and countries in West Africa, Fresenius knowingly failed to implement reasonable internal accounting controls over financial transactions, and failed to maintain books and records that accurately and fairly reflected the transactions.
In Angola, Fresenius offered or provided bribes to an Angolan military health officer and his family, as well as prominent Angolan government-employed nephrologists. Specifically, Fresenius offered these individuals shares in a joint venture, storage contracts, and consultancy agreements, all for the purpose of securing an improper advantage and assisting Fresenius with obtaining and retaining business in Angola.
In Saudi Arabia, Fresenius employed a check cashing scheme, entered into sham consulting and commission agreements for which no services were ever performed, entered into fake collection commission agreements, made payments to a government charity, gave gifts, and made payments for travel with no business or educational justification, the company admitted.
In Morocco, Fresenius paid bribes to a Moroccan state official for the purpose of obtaining contracts to develop kidney dialysis centers at Moroccan state-owned military hospitals.
In Spain, Fresenius entered into fake consulting agreements with publicly-employed doctors or professionals who could influence or provide information about public tenders, gave gifts or provided other benefits such as travel to medical conferences, and made donations to fund projects for the doctors.
In Turkey, Fresenius entered into joint ventures with publicly-employed doctors in exchange for those doctors directing business from their public employer to Fresenius Turkey clinics.
In West Africa, Fresenius paid bribes to publicly-employed health officials in various countries, including Benin, Burkina Faso, Cameroon, the Ivory Coast, Niger, Gabon, Chad, and Senegal. Fresenius paid these bribes through a combination of direct payments, payments made through third parties, and payments through a third-party distributorship, all to obtain and retain business in those countries.
In total, Fresenius earned more than $140 million in profits from the corrupt schemes.
To resolve the case, Fresenius entered into a non-prosecution agreement (NPA) with DOJ and agreed to pay a total criminal penalty of $84,715,273. As part of the NPA, Fresenius also agreed to continue to cooperate with DOJ’s investigation, enhance its compliance program, implement rigorous internal controls, and retain an independent corporate compliance monitor for at least two years.
DOJ reached this resolution based on a number of factors. Notably, although Fresenius voluntarily self-disclosed the misconduct in April 2012, the company did not timely respond to certain requests by the DOJ and, at times, did not provide fulsome responses to requests for information. In addition, misconduct occurred in 13 countries, yielded profits of more than $140 million, and continued in certain countries until 2016, and the company has not yet had the opportunity to test the effectiveness of its compliance enhancements. Therefore, the company did not qualify for a declination under the Corporate Enforcement Policy, and instead received a discount of 40 percent below the low end of the U.S. Sentencing Guidelines fine range, and an independent compliance monitor for a term of two years, followed by an additional year of self-reporting to the DOJ.
Fresenius settled a related FCPA matter with the SEC today and will pay $147 million in disgorgement and prejudgment interest to the SEC, which the DOJ credited in its resolution, bringing the total monetary amount to over $231 million.
Assistant U.S. Attorney Jordi de Llano of the District of Massachusetts and Trial Attorneys Paul A. Hayden and Sonali D. Patel of the Department’s Criminal Division’s Fraud Section are prosecuting this matter. The Department appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission in this matter.
Fresenius Medical Care Agrees to Pay $231 Million in Criminal Penalties and Disgorgement to Resolve Foreign Corrupt Practices Act ChargesRead the Press Release
Fresenius Medical Care AG & Co. KGaA (Fresenius), a German-based provider of medical products and services, has agreed to pay approximately $231 million to resolve investigations by the Department of Justice and the Securities and Exchange Commission (SEC) into violations of the Foreign Corrupt Practices Act (FCPA) in connection with Fresenius’s participation in various corrupt schemes to obtain business in multiple foreign countries.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling of the District of Massachusetts, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division and Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Field Division made the announcement.
According to Fresenius’s admissions in connection with the resolution, between 2007 and 2016, Fresenius paid bribes to publicly employed health and/or government officials to obtain or retain business in Angola and Saudi Arabia. In Angola and Saudi Arabia, as well as in Morocco, Spain, Turkey and countries in West Africa, Fresenius knowingly and willfully failed to implement reasonable internal accounting controls over financial transactions and failed to maintain books and records that accurately and fairly reflected the transactions, the company admitted.
“Fresenius doled out millions of dollars in bribes across the globe to gain a competitive advantage in the medical services industry, profiting to the tune of over $140 million,” said Assistant Attorney General Benczkowski. “Today’s resolution, under which Fresenius has agreed to retain an independent compliance monitor for at least two years, reflects the Department’s firm commitment to both rooting out bribery and promoting the kind of effective corporate compliance programs that will prevent misconduct going forward.”
“Bribery, in all forms, is corrosive and illegal,” said U.S. Attorney Lelling. “As today’s announcement makes clear, this Office will continue its long tradition of aggressively investigating companies and individuals who use bribes and kickbacks to gain an unfair and illicit business advantage, or who deliberately turn a blind eye to that conduct.”
“This case shows the continued commitment of the FBI and our partners to investigate bribery and corruption worldwide,” said FBI Assistant Director Robert Johnson. “The FBI's dedicated International Corruption Squads across the United States will continue to combat foreign corruption that reaches our shores and send a strong message that, no matter how long it takes, we will not wane in our efforts to uphold the law.”
“This case shows the FBI will hold accountable those who treat corruption as the cost of doing business,” said FBI Special Agent in Charge Bonavolonta. “Fresenius’s admissions are incredibly concerning because no company should break the law by paying-off international partners to obtain or retain business. We will continue to work with our law enforcement partners to root out corrupt schemes and ensure they do not become common practice at the expense of other hard-working businesses.”
In Angola, Fresenius offered or provided things of value to an Angolan military health officer who exercised authority over the Angolan state-owned military hospital in his role as an officer in the Medical Services Division of the Angolan Armed Forces and his family, as well as prominent Angolan government-employed nephrologists. Specifically, Fresenius offered these individuals shares in a joint venture in Fresenius’s local subsidiary, specifically, 15 percent to the Angolan military health officer and 15 percent to a publicly employed doctor, storage contracts with a company owned by the sons of the Angolan military health officer, to provide warehousing space, however, no Fresenius products were ever stored at the warehouse, and consultancy agreements with publicly employed doctors for which no services were ever performed, all for the purpose of securing an improper advantage and assisting Fresenius with obtaining and retaining business in Angola.
In Saudi Arabia, Fresenius offered or provided things of value to Saudi Arabian health officials and publicly employed doctors who directed or were employed by a Saudi medical organization and a governmental charity. Specifically, Fresenius engaged in a check-cashing scheme where employees were directed to cash checks that had been made payable in their names and return the cash to the general manager of Fresenius’s distributor and agent where he [the agent] then arranged to have the cash delivered to Saudi government doctors and others. In addition, publicly employed doctors were awarded sham consulting and commission agreements for which no services were ever performed. Fresenius also entered into fake collection commission agreements, made payments to a government charity, and gave gifts and made payments to publicly employed doctors for travel with no business or educational justification, the company admitted.
In Morocco, Fresenius paid bribes through a sham commission to a Moroccan state official for the purpose of obtaining contracts to develop kidney dialysis centers at Moroccan state-owned military hospitals. The sham commission would pay 10 percent of the value of the contract to the Moroccan state official and was disguised as a bonus payment to a Fresenius employee. In Spain, Fresenius entered into fictitious consulting agreements with publicly employed doctors or professionals who could influence or provide information about public tenders. For example, between 2008 and 2011, Fresenius paid a publicly employed doctor more than €81,000 without a consulting agreement or contract in place. This publicly employed doctor was the head of nephrology at a Spanish state-owned hospital that ultimately awarded Fresenius a tender in 2011. Further, Fresenius gave gifts or provided other benefits such as travel to medical conferences, and made donations to fund projects for the doctors, the company admitted. In Turkey, Fresenius entered into joint ventures with publicly employed doctors in exchange for those doctors directing business from their public employer to Fresenius clinics in Turkey. For example, in or around 2006, Fresenius entered into a joint venture with a publicly employed Turkish doctor, who received 35 percent of the joint venture shares (worth approximately $74,000 at the time) at the time it was formed. In 2010, Fresenius purchased the doctor’s shares and never required the doctor to pay for his shares in the joint venture resulting in $356,000 profit to the doctor. In West Africa, Fresenius knowingly paid bribes to publicly employed health officials and government-employed doctors in numerous countries, including Benin, Burkina Faso, Cameroon, the Ivory Coast, Niger, Gabon, Chad and Senegal. For example, Fresenius employees met with representatives of a Gabon state-owned hospital and proposed a five-year agreement that would include the “prices plus the commission” that the officials would receive for each kit sold. A Fresenius employee responsible for sales in West Africa reported that the agreement would provide for a €12 commission for each kit sold, which was intended as a “commission for the three persons who sign the contract with us.” Fresenius paid these bribes through a combination of direct payments, payments through third parties and payments through a third-party distributorship, all to obtain and retain business in those countries, the company admitted.
In total, Fresenius admitted to earning more than $140 million in profits from the corrupt schemes.
To resolve the case, Fresenius entered into a nonprosecution agreement (NPA) with the Department and agreed to pay a total criminal penalty of $84,715,273. As part of the NPA, Fresenius also agreed to continue to cooperate with the Department’s investigation, enhance its compliance program, implement rigorous internal controls and retain an independent corporate compliance monitor for at least two years.
The Department reached this resolution based on a number of factors. Notably, although Fresenius voluntarily self-disclosed the misconduct in April 2012, the company did not timely respond to certain requests by the Department and, at times, did not provide fulsome responses to requests for information. In addition, misconduct occurred in 13 countries, yielded profits of more than $140 million and continued in certain countries until 2016. Moreover, the company has not yet had the opportunity to test the effectiveness of its compliance enhancements. In light of all the factors, the company did not qualify for a declination under the Corporate Enforcement Policy; however, the company was afforded a reduction of 40 percent below the low end of the U.S. Sentencing Guidelines fine range. As part of the resolution, the company agreed to an independent compliance monitor for a term of two years, followed by an additional year of self-reporting to the Department.
Fresenius settled a related FCPA matter with the U.S. Securities and Exchange Commission (SEC) today, and will pay $147 million in disgorgement and prejudgment interest to the SEC, which the Department credited in its resolution, bringing the total amount paid by Fresenius to over $231 million.
This case is being investigated by the FBI’s International Corruption Squad in New York and the FBI’s Boston Field Office. Trial Attorneys Paul A. Hayden and Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jordi de Llano of the District of Massachusetts are prosecuting the case.
The Department appreciates the significant cooperation and assistance provided by the SEC in this matter.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s Fraud Section FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Shakopee School Superintendent Sentenced to Prison for Soliciting BribesRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of RODNEY KEITH THOMPSON, 53, to 24 months in prison for corruptly soliciting a bribe. THOMPSON, who pleaded guilty on November 15, 2018, was sentenced before Judge Susan R. Nelson in U.S. District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, from 2011 through June 2017, THOMPSON served as the Superintendent of the Shakopee School District. In his official capacity, THOMPSON had the authority to select contractors to perform construction and related services for the School District. THOMPSON used his position and authority to obtain personal benefits from a company interested in being awarded contracts with the School District. THOMPSON solicited things of value from the company, such as home improvement projects, personal travel, and attendance at sporting events, in exchange for contracts with the School District. For example, between July 2010 and November 2015, at THOMPSON’s demand, the company spent more than $44,000 remodeling and improving the basement of THOMPSON’s Shakopee house.
“Mr. Thompson abused his position of trust throughout his entire tenure with the Shakopee School District. And now, his greedy and corrupt dealings have earned him a prison sentence,” said U.S. Attorney Erica H. MacDonald.
“Today’s sentence of Mr. Thompson demonstrates our collective commitment to hold public officials accountable”, said Jill Sanborn, Special Agent in Charge of the FBI’s Minneapolis Division. “The success of this investigation was due in large part to the collaboration between the FBI, Department of Justice, the Scott County Attorney’s Office and the Shakopee Police Department. Together with our law enforcement partners, the FBI will continue to investigate public officials who abuse their positions and violate the public trust.”
This case was the result of an investigation conducted by the FBI.
Assistant U.S. Attorney David J. MacLaughlin prosecuted the case.
Defendant Information:
RODNEY KEITH THOMPSON, 53
Shakopee, Minn.
Convicted:
- Corrupt solicitation of a bribe, 1 count
Sentenced:
- 24 months in prison
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former New Jersey Heroin Courier Sentenced to More than 8 Years in PrisonRead the Press Release
PITTSBURGH - A former resident of East Orange, New Jersey was sentenced in federal court on Tuesday to eight years and four months (100 months) in prison on his conviction of federal drug crimes, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Marvin Anthony, 41.
According to information presented to the court, in March of 2018, Anthony brought 475 "bricks" of heroin to Western Pennsylvania from New Jersey in an effort to sell it. DEA agents and Task Force Officers then apprehended Anthony.
Judge Ambrose required Anthony to undergo an eight-year period of supervision by the United States Probation Office to follow his eventual release from incarceration.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration (DEA) and their many state, county and local police department partners, including the Canonsburg Police Department, the Monessen Police Department, the Pennsylvania State Police and the Washington County Sheriff’s Office, for the investigation leading to the successful prosecution of Anthony.
Former Hillsborough Community College Professor Pleads Guilty to Possession and Distribution of Child PornographyRead the Press Release
Tampa, Florida – Howard Joseph Vorder Bruegge, III (36, Tampa) pleaded guilty today to possessing and distributing child pornography. Vorder Bruegge, a former mathematics professor at Hillsborough Community College (HCC), faces a minimum mandatory penalty of five years, and up to 40 years, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Vorder Bruegge, using the internet monikers “JoeBlow73” and “JoeBlowFL,” distributed child pornography on multiple occasions. He also collected child pornography on his cellphone, including sex-abuse videos of babies and toddlers.
Vorder Bruegge also used his phone to film and publically share voyeur videos on the internet. He employed peepholes in bathrooms on the HCC campus to film college students while they were in restroom stalls. He then distributed those videos on websites that host voyeur content. Vorder Bruegge’s phone contained at least four videos capturing adult males through peepholes in public HCC restrooms.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Frank Murray.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Baltimore Police Commissioner Darryl De Sousa Sentenced to Federal Prison for Failing to File Tax ReturnsRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced former Baltimore Police Commissioner Darryl De Sousa, age 54, of Baltimore, Maryland, today to 10 months in federal prison, followed by one year of supervised release, for three counts of failing to file individual federal tax returns. Judge Blake also ordered DeSousa to perform 100 hours of community service, and ordered him to pay restitution in the full amount of the government’s loss, which is $67,587.72. Counting payments already made, the amount still owed is $60,645.11.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“As a law enforcement officer, Darryl DeSousa knew that he had a duty to file tax returns. His failure to file was a crime – not an oversight,” said U.S. Attorney Robert K. Hur. “Corrupt public employees rip off the taxpayers and undermine everyone’s faith in government.”
“This investigation confirms the principle that no one is above the law,” said Acting FBI Baltimore Special Agent in Charge Jennifer L. Moore. “The FBI will continue to work tirelessly to make sure those in a position of power uphold the law and are held to the highest standards.”
“IRS-CI works hard to ensure faith in our tax laws,” said Kelly Jackson, IRS-CI Special Agent in Charge. “The prosecution of those who willfully violate their known duty of filing and paying their fair share is a vital element of the IRS’ enforcement strategy.”
According to his plea agreement, De Sousa was employed by the Baltimore Police Department beginning in 1998. De Sousa announced his resignation from BPD on May 15, 2018. On June 10, 1999, De Sousa submitted an Employee’s Withholding Exemption Certificate (W-4) to the City of Baltimore falsely claiming nine allowances for both federal and state tax purposes. By virtue of this claim, De Sousa substantially reduced the amount of taxes withheld from his salary each year. When he filed his federal and state income taxes for calendar years 2008 through 2012, he falsely claimed deductions to which he was not entitled, including for unreimbursed employee expenses when he had no such expenses, mortgage interest deductions and deductions for local property taxes when he did not have a mortgage or own any real property, and business losses when he did not operate any businesses. By virtue of these improper deductions, De Sousa fraudulently reduced the amount of taxes he owed to the Internal Revenue Service (IRS) and the State of Maryland.
De Sousa admitted that for calendar years 2011 and 2012, he did not file tax returns at all and did not do so until 2014. When he did file returns for those years he falsely claimed unreimbursed employee expenses and donations to charity. De Sousa also failed to pay penalties and interest on those late-filed returns despite having been told to do so by the IRS. In addition, as of May 5, 2018, De Sousa had not filed taxes for 2013, 2014, or 2015, despite knowing that he had a legal obligation to do so. By virtue of the nine allowances he falsely claimed, De Sousa also owed additional money to the United States and the State of Maryland in each of those years, as he also knew.
As a result of De Sousa’s actions, the total combined tax due to the United States and to the State of Maryland is $67,587.72.
United States Attorney Robert K. Hur commended the FBI and IRS-CI for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise, Derek E. Hines, and Sean R. Delaney, who prosecuted the case.
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