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Tuesday 19 February 2019
Former Pediatric Medical Assistant Pleads Guilty to Child Sexual ExploitationRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Cameron Carlucci, 27, of Philadelphia, PA, entered a guilty plea today to a federal indictment which charged him with two counts of distribution of child pornography, and one count of possession of child pornography. The indictment stemmed from an investigation that determined Carlucci was trafficking in child pornography over the Internet for almost four years, from 2015 through his arrest in 2018. During that time, he amassed more than 56,000 images and videos that depicted mostly prepubescent boys, infants, and toddlers being sexually abused and exploited.
At the time that Carlucci distributed these images and videos over the Internet, he worked at Valley Pediatrics in Warminster, PA as a medical technician. To obtain employment with Valley Pediatrics, Carlucci falsified his application by denying his criminal history, which included a 2011 Pennsylvania conviction for possession of obscene materials and other sexual materials.
As a result of his guilty plea, Carlucci faces a statutory maximum of 60 years’ imprisonment, a 5-year mandatory minimum sentence of imprisonment, 5 years up to a lifetime of supervised release, a $750,000 fine, and $15,300 special assessment.
“Carlucci’s years of taking advantage of our community’s most vulnerable victims is reprehensible, but it is intensified by the fact that he had daily contact with children in a job he never should have had in the first place,” said U.S. Attorney McSwain. “Child exploitation is a pervasive problem – one that demands an aggressive response. We stand ready with our federal partners to identify and dismantle online forums that perpetuate this abuse.”
“Child exploitation cases are among the most disturbing the FBI works,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “They’re also some of the most impactful. We’re gratified to help take Cameron Carlucci off the street. Not only was he heavily involved with child pornography, but he purposely hid his criminal past to gain employment that allowed him daily interaction with children. If child predators can’t or won’t keep themselves away from kids, the FBI stands ready to step in and shut them down.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Former Hospital Employee Sentenced for Embezzling Hospital FundsRead the Press Release
He stole over $46,000 in a little more than a month from Pleasant Valley Hospital
HUNTINGTON, W.Va. – A Point Pleasant man was sentenced to three months in prison for embezzling more than $45,000 from the Pleasant Valley Hospital, announced United States Attorney Mike Stuart. Kevin L. Durst, 62, was also ordered to pay restitution to the Hospital in the amount of $48,782.86. Stuart commended the investigative efforts of the Department of Homeland Security.
“They trusted him and, had they not caught him, he would still be stealing from them today, “ said United States Attorney Mike Stuart. “Hospitals like Pleasant Valley are under assault financially, let alone having to protect themselves from thieves like Durst. We all pay more for healthcare to make up for the losses when unscrupulous characters steal from the very hospitals that care for us. Any amount of loss can be devastating and health care providers and patients suffer as a result.”
Durst admitted as a financial analyst at Pleasant Valley Hospital, he had access to the Hospital’s online bank accounts and could initiate wire transfers on certain of those accounts. He further admitted that he secretly wrote checks to benefit himself and to his family’s private cemetery from a Hospital account that he knew was dormant and was not scrutinized by other Hospital officials. He also admitted that he transferred funds from the Hospital’s active accounts to the dormant account to ensure that there were abundant funds for his personal use. He further admitted that he initiated wire transfers to the Internal Revenue Service out of Hospital accounts to make federal tax payments for his family’s cemetery. He embezzled the funds between July 20, 2016, and August 22, 2016.
Assistant United States Attorneys Joe Adams and Meredith George Thomas were in charge of the prosecution. United States District Judge Robert C. Chambers presided over the sentencing hearing.
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Former Hillsborough Resident Pleads Guilty to Investment Fraud SchemeRead the Press Release
SAN FRANCISCO—Michael James Frew pleaded guilty today to wire fraud, mail fraud, and money laundering charges in connection with a fraudulent real estate investment scheme, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Kareem Carter. The guilty plea was accepted by the Honorable Vince Chhabria, U.S. District Judge.
According to the plea agreement, Frew, 70, formerly of Hillsborough, Calif., admitted that starting no later than 2010 and continuing through March of 2014, he solicited investments from numerous individuals on the false premise that he would invest their money in real estate. Frew sometimes claimed the real estate was in foreign countries and usually explained that the areas in which he would invest recently had been struck by a natural disaster. In truth, Frew did not invest his victims’ money in real estate. Instead, he used the money to speculate in the stock market, to make expenditures for personal expenses, and to repay other victim “investors.” Frew admitted that on several occasions he paid some of the money back to investors to make it seem like their investments were legitimate, which lulled his victims into a false sense of security that their money was properly invested. He further admitted he caused losses to his victims of up to $3.5 million.
A federal grand jury indicted Frew on July 26, 2018, charging him with two counts each of wire fraud, in violation of 18 U.S.C. § 1343; mail fraud, in violation of 18 U.S.C. § 1341; and money laundering, in violation of 18 U.S.C. § 1957. Frew pleaded guilty to all the charges except one count of mail fraud, which will be dismissed at sentencing if Frew complies with the terms of the plea agreement.
Judge Chhabria scheduled Frew’s sentencing hearing for July 17, 2019, at 10:30 a.m. The defendant faces a maximum sentence of 20 years’ imprisonment for the mail fraud count and for each count of the wire fraud counts. Frew faces a maximum sentence of 10 years’ imprisonment on each count of money laundering. In addition, Frew faces fines of $250,000 on each count in the indictment and restitution for the losses he is alleged to have caused. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Robert David Rees is prosecuting the case with assistance from Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the IRS-CI.
Former Employee Sentenced for Wire FraudRead the Press Release
United States Attorney Joe Kelly announced that Jennifer A. Rosenblatt, 44, formerly of Lincoln, Nebraska, was sentenced today in Lincoln, Nebraska, to 6 months in a residential re-entry center and 6 months of home confinement by Chief United States District Judge John M. Gerrard, for wire fraud. Rosenblatt was also ordered to pay $106,604.22 in restitution and will serve 3 years on supervised release.
Between July, 2014, and October, 2016, Rosenblatt devised a scheme to defraud and to obtain money from the Jewish Federation of Lincoln. Between 2009 through June 2016, Rosenblatt served as the Treasurer of the Jewish Federation, and in that capacity, was authorized to sign checks and make electronic payments for the Jewish Federation. Rosenblatt did not have any authority to use funds for personal expenditures. However, during this time, Rosenblatt made online payments to her personal credit card accounts from funds in the Federation’s bank accounts. These payments were for personal items charged by Rosenblatt on her personal credit cards and not made for any business activities of Jewish Federation League.
This case was investigated by the Lincoln Police Department and the Federal Bureau of Investigation.
Former College Student in Ithaca to Serve 24 Months on Weapons ConvictionsRead the Press Release
SYRACUSE, NEW YORK - Maximilien R. Reynolds, age 21, of Rumson, New Jersey, who resided in Ithaca, New York, while attending college, was sentenced today to serve 24 months in prison in connection with his previous guilty pleas to two felony firearms offenses.
The announcement was made by United States Attorney Grant C. Jaquith; Tompkins County District Attorney Matthew Van Houten; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); John Devito, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)-New York Field Division; Chief Peter Tyler of the City of Ithaca Police Department; and Chief Kathy Zoner of Cornell University Police. The sentence imposed includes a 3-year term of supervised release following the defendant’s release from prison, and orders him to receive mental health services and drug treatment.
On November 13, 2018, Reynolds pled guilty to one count of willfully causing false statements to be made to a licensed firearms dealer during the purchase of a firearm (a Savage MSR-15 Multi-Caliber .223/5.56mm Patrol Rifle) and one count of possessing firearms not registered in the National Firearms Registry and Transfer Record, related to his possession of a sawed-off Savage MSR-15 Multi-Caliber 223/5.56mm Patrol Rifle, a destructive device (bomb), and a silencer. The guilty plea followed an investigation that was begun in late February 2018 after an employee at the Walmart in Ithaca notified police that Reynolds had visited the store on February 23, 2018, was acting and appearing strangely, and had purchased a large quantity of ammunition and other items.
On March 7, 2018, Ithaca Police and FBI Special Agents interviewed Reynolds in Ithaca, at which time he gave them written consent to search his apartment and car. During the search of the apartment, Ithaca Police, and FBI and ATF Agents, assisted by the New York State Police, recovered a Savage MSR-15 Multi-Caliber 223/5.56mm Patrol Rifle with a telescopic sight, 917 rounds of .223 rifle ammunition, 17 thirty-round ammunition magazines, 6 ten-round ammunition magazines, 134 rounds of 12-gauge shotgun ammunition, a silencer, a destructive device containing ball bearings, two bullet-proof vests, two gas masks, hundreds of ball bearings, wound kits (field dressings), consumer grade fireworks, chemicals for making explosives, fuse cords, a pipe section and endcap, as well as other tactical items. Reynolds was voluntarily admitted for a mental health examination at that time, and was arrested and charged on March 15, 2018.
As part of his guilty plea, Reynolds also admitted that he possessed a .25 caliber Bauer Arms semiautomatic pistol with an obliterated serial number that was located and recovered from the Cayuga Canal by New York State Police divers after friends of the defendant disposed of it there following his arrest. At the time of his arrest on March 15, 2018, Reynolds was a part-time student at Tompkins-Cortland Community College. He was previously enrolled as a full-time student at Cornell University, but was on an academic leave of absence.
This case was investigated by the FBI, ATF, the City of Ithaca Police Department, the Cornell University Police, the New York State Police and the Tompkins-Cortland Community College Campus Police, and was prosecuted by Assistant U.S. Attorney Richard Southwick with assistance from the Tompkins County District Attorney’s Office.
Former City of Wheeling employee sentenced for wire fraudRead the Press Release
WHEELING, WEST VIRGINIA – Teresa D. Hudrlik, of Valley Grove, West Virginia, was sentenced today to six months incarceration for committing wire fraud while employed by the City of Wheeling, United States Attorney Bill Powell announced.
Hudrlik, age 48, pled guilty to one count of “Wire Fraud” in October 2018. Hudrlik was the Human Resources Director for the City of Wheeling from April 2016 to March 2018. During her tenure with the City of Wheeling, she admitted to using a city-issued purchasing card to make personal purchases, without authorization. Hudrlik also admitted to altering receipts and documentation to disguise said purchases, giving herself payroll bonuses without authorization, and causing unauthorized payroll payments in the names of other city employees to be deposited into personal banking accounts Hudrlik controlled. The crimes occurred from June 2016 to March 2018 in Ohio County.
“We must hold our public employees to a high standard, expecting them to operate as hardworking and honest public servants. The vast majority meet or exceed those expectations. Ms. Hudrlik violated the sacred public trust, and was prosecuted and sentenced for that violation, in accordance with the rule of law. We commend the City of Wheeling and its cooperation in this matter,” said Powell.
The judge ordered Hudrlik to pay restitution to the City of Wheeling in the amount of $80,000 and a money judgement in the amount of $50,000. Hudrlik was also ordered to serve three years supervised release following her incarceration.
“The City of Wheeling employees are required to hold the public trust in a very sacred manner and senior members of the City’s management, being administrators, are held to an even higher standard and higher level of expectations of honesty. As public employees, we are required to operate municipal governments in a fair and fiducially prudent manner concerning the public funds. This employee violated all such levels of trust. The City of Wheeling believes that this former employee should be punished for her conduct and trusts that the Court considered an appropriate prison sentence along with restitution to the City of Wheeling,” said Robert Herron, City Manager, the City of Wheeling
Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government. The Federal Bureau of Investigation, the West Virginia State Auditor’s Office, and the West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Former Bexar County Jail Guard Sentenced to Three Years in Federal Prison for Conspiring to Smuggle Contraband to InmatesRead the Press Release
In San Antonio today, a former detention officer at the Bexar County Adult Detention Center (BCADC) was sentenced to three years in federal prison for a scheme to smuggle methamphetamine to inmates, announced U.S. Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Bexar County Sheriff Javier Salazar.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that 30-year-old Gabriel Robert Ortiz be placed on supervised release for a period of three years after completing his prison term. On November 20, 2018, Ortiz pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. By pleading guilty, Ortiz admitted that he and his co-defendant, 27–year-old former BCADC officer Ruben Hernandez, carried out their attempted smuggling scheme from May 4, 2018, until June 22, 2018. Both defendants were the subjects of an undercover operation carried out by federal and state authorities.
Hernandez pleaded guilty to the same conspiracy charge on January 2, 2019. He faces up to 20 years in federal prison. Sentencing is scheduled for April 8, 2019.
“This sentence shows that members of law enforcement who violate the law will be held to the same standards as any other citizens,” stated U.S. Attorney John Bash.
“I am glad to see that justice was served in this case, and I am proud to have partnered with the FBI on this sting operation. As I’ve stated in the past officer misconduct will not be tolerated within my agency and I will do everything possible to hold them accountable criminally and administratively,” stated Bexar County Sheriff Javier Salazar.
The FBI and the Bexar County Sheriff’s Office investigated this case. Assistant U.S. Attorney Greg Surovic is prosecuting this case on behalf of the Government.
Felon in Possession of a Firearm Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Allen Malcolm Stienke, 35, of Robertsdale, Alabama, was sentenced on the charge of felon in possession of a firearm. Court documents reflect that Steinke was in a vehicle stopped by the Elberta police for displaying a switched tag. The officers recovered four guns in the vehicle, along with several items described a burglary tools. Steinke has a prior felony conviction for Unlawful Manufacturing of a Controlled Substance in Baldwin County Circuit Court, and the guns were described as three pistols and a revolver. Stienke pled guilty to the charge in September of 2018.
United States District Court Judge Callie V. S. Granade imposed a sentence of 51 months imprisonment, to be followed by three years of supervised release. During his supervision, Steinke will undergo treatment for drug and alcohol abuse. The judge did not impose a fine, but ordered that Steinke pay $100 in special mandatory assessments.
The case was investigated by the Elberta Police Department, the Baldwin County Sheriff’s Office, and the Federal Bureau of Investigation. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Felon Sentenced to Prison for Possessing Firearms and Drug TraffickingRead the Press Release
NORFOLK, Va. – A Franklin man was sentenced today to over eight years in prison for being a felon in possession of firearms and possessing firearms in furtherance of drug-trafficking crimes.
According to court documents, Loron Barnes, 25, was pulled over for driving 67 miles an hour in a 35-mile-an-hour zone roughly a block from the local police station. After officers smelled marijuana coming from the vehicle, they conducted a search and found contraband in every part of the car, including an AK-type rifle loaded with 57 rounds of ammunition in two extended magazines taped together sitting on the back seat next to a black ski mask and suspected marijuana; a loaded, stolen handgun underneath the driver seat; heroin, cocaine, amphetamine, and a digital scale in the driver’s-side-door pocket; more heroin in the center console; more cocaine in the front passenger-side door pocket; two boxes of .45 caliber ammo on the front-passenger-seat floor; and an empty handgun magazine in the driver’s-side-door armrest. Police discovered more than 26 grams of heroin and more than 20 grams of cocaine.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; and Robert Porti, Deputy Chief of the City of Franklin Police Department, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney William B. Jackson 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. 2:18-cr-118.
Federal Jury Convicts Woman of Coercing Members of Church Ministry into Forced LaborRead the Press Release
CHICAGO — A federal jury in Chicago has convicted the self-appointed bishop of a Pennsylvania ministry of forcing church members to work certain jobs, pocketing their earnings, and directing them to defraud various hotels.
TRACIE DICKEY, also known as “Tracie Williams,” 55, of Pittsburgh, Pa., was found guilty Friday on one count of wire fraud and one count of labor trafficking. Each count is punishable by up to 20 years in prison. U.S. District Judge Sara L. Ellis set sentencing for Aug. 7, 2019, in federal court in Chicago.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Valuable assistance was provided by U.S. Attorney’s Offices in the Northern District of Texas and Middle District of Florida, and the FBI’s Pittsburgh, Pa., field office. The government is represented by Assistant U.S. Attorneys Maureen E. Merin and Eric S. Pruitt.
Dickey was a self-appointed bishop of Deliverance Tabernacle Ministries, an organization she founded that proclaimed to offer faith-based services in locations such as Pennsylvania, North Carolina, and Florida. She also purported to operate a travel agency known as World Ambassador Travel.
Evidence at trial revealed that Dickey recruited young women to become members of the ministry, and directed them to work multiple jobs, including as desk clerks at hotels. She instructed the members on how to have the hotels pay reservation-commission fees to Dickey’s travel agency, via a bank account controlled by Dickey. In reality, the travel agency never actually booked hotel reservations on behalf of guests.
From 2005 to 2013, the hotels paid approximately $86,000 in commissions to Dickey. Dickey also collected approximately $333,000 in wages earned by members of her ministry. Dickey emotionally and physically abused the members, and coerced them into following her rules and remitting their earnings to Dickey or her church. Dickey’s tactics included starving and humiliating church members, forcing some of them into homelessness, and threatening that God would harm their families if they did not comply with Dickey’s rules. Several of Dickey’s victims testified at trial about their ordeals.
Father and Son Sentenced in Large Scale Vehicle Odometer Roll Back SchemeRead the Press Release
Jackson, Miss. – Mark Longgrear, 54, of Jackson, was sentenced today to 57 months in prison, and his son, Zachary Longgrear, 29, of Madison, was sentenced to 28 months in prison by United States District Judge Carlton W. Reeves for conspiring to reset and alter the odometers of motor vehicles, to giving or causing to be given false statements relating to odometers, and securities fraud, announced U.S. Attorney Mike Hurst and Special Agent-in-Charge Midwest Region, Kevin L. Porter with the U.S. Department of Transportation, National Highway Traffic Safety Administration. The Longgrears were also ordered to pay restitution, jointly and severally, in the amount of $1.5 million.
From 2014 through at least February 2018, Mark Longgrear, along with his son, Zachary Longgrear, both individually and under their company Southern Auto Buyers LLC, bought a large number of late model, high mileage vehicles from numerous sources, and thereafter illegally altered the odometers of these vehicles to show lower mileage. The Defendants forged and fraudulently created paperwork to secure new titles showing false lower mileage on these vehicles, and then sold the vehicles directly to individuals and automobile dealerships at much higher prices. Some of these rolled-back vehicles were subsequently sold by the dealerships to consumers in the Mississippi area and elsewhere. Over 200 vehicles have been confirmed with rolled-back odometers.
The case is the result of an investigation by the United States Department of Transportation, National Highway Traffic Safety Administration, Office of Odometer Fraud Investigation, with assistance from the United States Postal Inspection Service, and the U.S. Marshals Service. It was prosecuted by Assistant U.S. Attorney Keesha Middleton.
Odometer fraud is the disconnection, resetting, or alteration of a vehicle’s odometer with the intent to change the number of miles indicated. NHTSA estimates that more than 450,000 vehicles are sold each year with false odometer readings. It costs American consumers more than $1 billion annually.
NHTSA has established a special hotline to handle odometer fraud complaints. Individuals who have information relating to odometer tampering should call (202) 366-4761.
Eufaula Man Sentenced to 157 Months for Methamphetamine Distribution, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Erickson Clay Ward, age 57, of Eufaula, Oklahoma, was sentenced to 97 months imprisonment and 4 years of supervised release for Possession With Intent To Distribute Methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841 (b)(1)(B); and 60 months imprisonment to run consecutive to his sentence for Count 1, for Possession Of Firearm In Furtherance Of Drug Trafficking Crime in violation of Title 18, United States Code, Section 924(c). The charges arose from an investigation by the Pittsburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about May 3, 2018, in the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with the intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance. The Indictment also alleged that on or about May 3, 2018, the defendant knowingly possessed a firearm - a Cobra Enterprises, Inc. / Kodiak Ind., Model FS380, 380 caliber pistol, serial number FS049344 - in furtherance of a drug trafficking crime.
United States Attorney Brian J. Kuester said, “Helping state and local law enforcement authorities combat violent crime is a priority for this office and the Department of Justice. We can maximize our impact in the communities we serve when federal, state, local and tribal law enforcement agencies recognize that we all have the common goal of public safety, and work together to achieve it. This case is a great example of the type of interagency cooperation that is a common occurrence in the Eastern District.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. First Assistant United States Attorney Christopher Wilson represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Enfield Man Who Sold Heroin and Fentanyl to Overdose Victim Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CHRISTOPHER FELICIANO, 29, of Enfield, pleaded guilty today in Bridgeport federal court to one count of possession with intent to distribute, and distribution, of heroin and fentanyl.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, at approximately 8:55 a.m., on October 8, 2017, Enfield Police and emergency medical personnel responded to a residence in Enfield and found an unresponsive 24-year-old male in the home. The victim was pronounced deceased. Officers searched the immediate area and located narcotics paraphernalia. Officers also seized the victim’s phone. An analysis of Facebook messages and telephone contacts revealed that the victim had ordered heroin/fentanyl from Feliciano the day before the victim was found deceased.
The offense carries a maximum term of imprisonment of 20 years. A sentencing date is not scheduled.
Feliciano is detained pending sentencing.
This matter has been investigated by the Drug Enforcement Administration and the Enfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Eastern Shore Drug Dealer Pleads Guilty to Distribution of Fentanyl AnaloguesRead the Press Release
Baltimore, Maryland – Narada Walls, age 38, of Salisbury, Maryland, pleaded guilty today to conspiracy to possess and to distribute fentanyl and fentanyl analogues. Fentanyl analogues are chemical compounds designed to have effects similar to fentanyl and can be just as deadly.
The guilty plea 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) Baltimore; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, in fall 2017, law enforcement began an investigation into a drug trafficking organization operating on the Eastern Shore of Maryland and in Baltimore, which was responsible for importing and distributing fentanyl and fentanyl analogue substances. This investigation revealed that Narada Walls was part of the conspiracy and used assumed names and a fake e-mail address to purchase methoxyacetyl fentanyl directly from suppliers in China. Walls had this product shipped to addresses of his acquaintances along the Eastern Shore of Maryland to distance himself from the packages. Walls imported more than 1.5 kilograms of methoxyacetyl fentanyl in this manner.
In September and November, 2017, a confidential source purchased fentanyl analogue substances from Walls, at the direction of law enforcement. On each occasion, Walls brought the drugs to Baltimore, where he met with the source. During their interactions Walls discussed with the source the potency of this product and how it needed to be diluted with cutting agents or offered only to experienced drug users, or else overdoses could occur.
In December 2017, law enforcement executed a search warrant at Walls’ residence in Salisbury. Inside a safe found at the home was approximately 419 grams of methoxyacetyl fentanyl and approximately $18,650 in drug proceeds. Law enforcement recovered other drug-related paraphernalia from Walls’ bedroom, including a blender, a digital scale, and packaging materials.
Walls agreed that, in June 2017, he was in a relationship with a recovering heroin user. According to a witness, on June 14, 2017, Walls asked this woman to clean up the kitchen, which was the area where Walls mixed his drug product. In the process of cleaning up the blender in the kitchen, the victim ingested some of this fentanyl analogue product. At approximately 6:15 pm, Walls found the victim on the kitchen floor. Paramedics were called, and she was later pronounced dead. An autopsy determined that the woman’s death was caused by her exposure to this fentanyl analogue product.
As part of his plea agreement, Walls will be required to forfeit any items of value seized during search of Walls’ home and vehicle, including $18,650 in cash seized from his residence in December 2017, and $11,000 in cash seized from his vehicle in June 2017.
The government and Walls have agreed that 12 years in prison is the appropriate resolution of this case and will recommend that sentence to the court. U.S. District Judge George L. Russell III has scheduled sentencing for June 21, 2019 at 11:30 a.m.
United States Attorney Robert K. Hur commended HSI and Maryland State Police Gang Enforcement Unit East for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jason D. Medinger and Burden Walker, who are prosecuting the case.
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Eagle Butte Woman Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Mary Etta Kessler, a/k/a/ Marietta Kessler, age 55, was indicted on February 13, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 15, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each count. Restitution may also be ordered.
The Indictment alleges that at a time unknown, but no later than on April 1, 2016, and continuing to February 13, 2019, in South Dakota, Kessler knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance.
The charge is merely an accusation and Kessler is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Kessler was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Convicted Felon Sentenced for Heroin Trafficking and Possessing FirearmRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to more than 15 years in prison for conspiring to distribute and possess heroin and for possessing a firearm as a convicted felon.
“Drug traffickers in possession of firearms pose a significant threat to our communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Investigating and prosecuting these cases remains a top priority in the Eastern District. We would not have been able to achieve this result without the cooperation of our local and federal law enforcement partners. My thanks to Homeland Security Investigations Norfolk and the Virginia Beach Police Department for their outstanding work on this case.”
According to court documents, in June 2016, law enforcement learned that a person identified in court filings as S.D., was supplying heroin to an unidentified suspect with a (757) area code telephone number. Homeland Security Investigations Norfolk and the Virginia Beach Police (VBPD) identified the local suspect as Antonio Jerome Johnson, 37, of Virginia Beach. On October 20, 2016, HSI-Norfolk and VBPD observed S.D. enter Johnson’s residence in Virginia Beach. The next day, HSI-Norfolk and VBPD executed a search warrant at Johnson’s residence and seized nearly 800 grams of heroin, approximately $240,000 in cash, a loaded handgun, a bill money counter, digital scales, and a kilogram press. Johnson was a convicted felon at the time of this incident and was prohibited from possessing any firearm.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Darryl J. Mitchell 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. 2:17-cr-17.
Ceres Man Pleads Guilty to 15-Pound Methamphetamine Deal in Kern CountyRead the Press Release
FRESNO, Calif. — Jose Manuel Sotelo-Mendoza, 26, of Ceres, pleaded guilty today to conspiring to distribute and possess with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Sotelo and his co-defendant Oscar Ivan Salazar-Avalos, 28, a citizen of Mexico, delivered 15 pounds of methamphetamine to an undercover officer in Delano after Salazar negotiated with the officer to sell the drug for $3,400 per pound. In pleading guilty, Salazar acknowledged that he and Sotelo had met his source of supply in Castaic in the northern part of Los Angeles County to obtain the 15 pounds of methamphetamine. In addition, Salazar indicated that they intended to make $51,000 on the deal.
Salazar is scheduled for sentencing on April 8, 2019, before U.S. District Judge Dale A. Drozd. Sotelo is scheduled for sentencing on May 13, 2019. They both face a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Central Valley High Intensity Drug Trafficking Area Task Force, consisting of law enforcement officers of Homeland Security Investigations, California Highway Patrol, Bureau of Investigation of the California Department of Justice, Fresno Police Department, and Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
California Man Arrested Getting Off Plane in Rochester to Have Sex with A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Gabriel Murillo, 44, of San Bernadino County, California, was arrested and charged by criminal complaint with attempted online enticement of a minor. The charge carries a minimum penalty of 10 years in prison, a maximum of life, a lifetime period of supervised release, and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that according to the complaint, between April 2018 and February 2019, Murillo engaged in sexually explicit online conversations with an individual who he believed was a 12 year old girl living in upstate New York. The defendant attempted to groom the child by sending her pornography, and despite acknowledging her age, requested that she meet with him for sex. On February 16, 2019, Murillo flew from Los Angeles, CA to Rochester, NY, in order to have sex with the child. Unbeknownst to the defendant, the child was actually an undercover New York State Police Investigator.
Murillo was apprehended while disembarking a plane at the Greater Rochester International Airport on February 16, 2019, by members of the New York State Police, Homeland Security Investigations, and the Federal Air Marshal Service.
The defendant made an initial appearance before U.S. Magistrate Marian W. Payson and is being held without bail pending a detention hearing.
The criminal complaint is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton; United States Department of Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Federal Air Marshal Service, under the direction of Supervisory Air Marshal-in-Charge William Hall.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Buffalo Man Sentenced for Selling Synthetic MarijuanaRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Fawzi Al-Arashi, 41, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute a controlled substance, was sentenced to serve 12 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that the investigation began in early 2012 when the Los Angeles Field Office of the Drug Enforcement Administration (DEA) notified the DEA's Buffalo Field Office of a suspected synthetic marijuana shipment destined for Buffalo. The package was delivered to the defendant at 3407 Delaware Avenue in the Town of Tonawanda, home of Town Tobacco.
Subsequent investigation revealed that Al-Arashi sold synthetic marijuana, also known as “Spice,” under such names as “Strawberry Flavored Potpourri,” “Tiger Shack,” “Atomic,” “G-20,” and “California Dreams” out of Town Tobacco on Delaware Avenue in Tonawanda, and at Welcome Welcome on Main St. in North Tonawanda.
Throughout the investigation, police received numerous complaints regarding the stores. One woman called and stated that her son was in the Erie County Medical Center Psychiatric Ward after using synthetic marijuana that he bought at Town Tobacco.
On July 25, 2012, authorities executed a search warrant at a warehouse leased to the defendant where he stored the synthetic marijuana, and found some 75 pounds of the products, which were typically sold in small sealed packets.
As part of the plea agreement, Al-Arashi forfeited more than $290,000 seized from various of his bank accounts as well as a 2012 Toyota Tundra.In announcing the sentence, U.S. Attorney Kennedy stated, “Despite the ‘green rush’ sweeping through our region of late, today’s sentencing makes two things crystal clear: (1) the manufacture and distribution of marijuana—whether real or synthetic—remain federal crimes; and (2) proceeds from the manufacture and distribution of marijuana remain subject to federal seizure and forfeiture.”
Today’s sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Ray Donovan, Special Agent-in- Charge, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of under the Major Mary Clark; the Tonawanda Police Department, under the direction of Chief Jerome Uschold; the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast; the Amherst Police Department, under the direction of Chief John Askey; and the Cheektowaga Police Department, under the direction of Chief David Zack.
Buckhannon woman admits to methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ann Marie Stankus, of Buckhannon, West Virginia, has admitted to distributing methamphetamine, United States Attorney Bill Powell announced.
Stankus, age 24, pled guilty to one count of “Aiding and Abetting the Possession with Intent to Distribute Methamphetamine.” Stankus admitted to working with another to distribute methamphetamine in December 2017 in Upshur County.Stankus faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted in the arrests.
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 Michael John Aloi presided.
Brooklyn Tax Return Preparer Pleads Guilty to Stolen Identity Refund Fraud SchemeRead the Press Release
A Brooklyn, New York, resident pleaded guilty on Friday to 42 counts of an indictment charging him with 18 counts of wire fraud, 22 counts of aggravated identity theft, one count of conspiring to commit aggravated identity theft, and one count of aiding and assisting the filing of a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Richard P. Donoghue for the Eastern District of New York.
According to court documents, Bamgbala, the owner of Kaybamz Inc., a tax preparation business located in Brooklyn, New York, used stolen Social Security Numbers to file false tax returns with the Internal Revenue Service (IRS) to obtain fraudulent refunds. The superseding indictment also alleges that Bamgbala and others conspired to deposit the unlawfully obtained tax refund checks into a specified bank account to obtain the cash value of those checks, and created fraudulent IRS forms and New York State identification documents to facilitate the scheme.
Bamgbala faces a mandatory minimum sentence of two years in prison for each count of aggravated identity theft, a maximum sentence of 20 years in prison for each count of wire fraud, a maximum sentence of five years in prison for each conspiracy count, and a maximum sentence of three years in prison for the aiding and assisting in the filing of a false tax return count. He also faces a period of supervised release, restitution, forfeiture and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Donoghue commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Mark McDonald and Eric Powers of the Tax Division, who are prosecuting the case.
Broken Bow Man Sentenced to 55 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Johnny Ray Webb, age 51, of Broken Bow, Oklahoma, was sentenced to 55 months imprisonment and 3 years of supervised release for Felon In Possession Of Firearm and Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the McCurtain County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about March 14, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “As the Department of Justice continues to make it a priority to combat violent crime, we must continue to build and strengthen the working relationships between law enforcement agencies from local, state, tribal and federal jurisdictions. As demonstrated in this case, when we are working together to combat violent crime and other criminal activity, we are making progress toward our shared goal of public safety.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. First Assistant United States Attorney Christopher Wilson represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Billings man sentenced to 15 years for meth traffickingRead the Press Release
BILLINGS—Billings resident James Nevels, III, was sentenced to 15 years in prison and five years of supervised release today for trafficking methamphetamine in the Billings community, U.S. Attorney Kurt Alme said.
Nevels, 40, pleaded guilty in August to conspiracy to possess meth with intent to distribute and to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
Prosecutors said evidence showed that drug investigators received information in October 2017 that Nevels and co-defendant, Nicole Waldhalm of Billings, were distributing in the Billings area meth that Waldhalm received from California. A confidential informant made meth buys from both Waldhalm and Nevels. In December 2017, the Montana Highway Patrol arrested Waldhalm, who was in possession of one ounce of meth. Waldhalm admitted that she and Nevels had brought between two and four ounces of meth from California to Montana.
Waldhalm was convicted in July 2018 in the case and sentenced last November to five years in prison.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force, the Drug Enforcement Administration, FBI and Billings Police Department.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Berea man charged after he allegedly contacted several children between the ages of 12 and 15 and coerced them into sending him sexually explicit imagesRead the Press Release
Cody Swinnerton, 24, of Berea, was charged in federal court with sexual exploitation of children and receipt of child pornography after he allegedly contacted several children between the ages of 12 and 15 and coerced them into sending him sexually explicit images.
According to an affidavit in the case:
The Ohio Internet Crimes Against Children Task Force received a tip that Swinnerton appeared to be enticing and coercing minors to produce sexually explicit images. Swinnerton controlled multiple accounts and targeted minors between the ages of 12 and 15 on Instagram and Facebook.
Swinnerton contacted the victims’ friends and family to coerce the victims into producing more images. He also threatened the victims in an effort to get them to produce sexually explicit images. Further investigation revealed potential victims in Ohio, Tennessee, Iowa, Texas, Australia, Austria and France.
A search warrant was executed at the home where Swinnerton lives in Berea on January 25. Relatives said Swinnerton was on vacation in Australia at the time. A review of his computer revealed several images of child pornography.
“This case demonstrates how predators will target our children over social media,” U.S. Attorney Justin E. Herdman said. “Parents and trusted adults need to make it their business to know who their kids are communicating with. We will continue to work with law enforcement agencies to prosecute these predators.”
“This case is a disturbing reminder that international borders are no longer a hindrance for online predators,” said Steve Francis, special agent in charge of HSI for Michigan and Ohio. “However, this arrest should assure victims around the world that Homeland Security Investigations and our partners in the international law enforcement community are committed to aggressively targeting those engaged in these heinous acts.”
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This investigation is being conducted by Homeland Security Investigations, the Ohio Internet Crimes Against Children Task Force, HSI-Canberra, the Australian Federal Police and Australian Border Force. The case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik.
A charge is only an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Bay Area Business Owner Pleads Guilty to Defrauding United States of More Than $500,000 of Employment TaxesRead the Press Release
SAN FRANCISCO – Herminigilda Manuel pleaded guilty today in federal court to willfully failing to account for and pay over federal employment taxes, announced United States Attorney David L. Anderson and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Kareem Carter. The plea was accepted by the Honorable Richard Seeborg, U.S. District Judge.
Manuel, 62, of San Leandro, Calif., is the former owner of three assisted living facilities in the San Francisco Bay Area. In pleading guilty, Manuel admitted that from 2010 through 2013, she willfully failed to account for and pay more than $500,000 of employment taxes (i.e., federal income, Social Security, and Medicare taxes) that were owed by the assisted living facilities. Further, Manuel admitted that to conceal her fraud, she caused her assisted living facilities to keep two sets of payroll accounting records. One set of records consisted of wages paid to employees and taxes withheld from those wages that were reported to the IRS. The second set of accounting records consisted of additional wages paid to employees that were not reported to the IRS. The employment taxes due on the additional wages totaled $512,000.
Manuel was charged by information on February 8, 2019, with twelve counts of willful failure to account for and pay over employment taxes, in violation of 26 U.S.C. § 7202. Under the plea agreement, Manuel pleaded guilty to one count; if Manuel complies with the plea agreement, the remaining counts will be dismissed at sentencing.
Judge Seeborg scheduled Manuel’s sentencing hearing for June 11, 2019 at 2:30 p.m. The maximum statutory penalty for a violation of 26 U.S.C. § 7202 is five years in prison and a fine of $250,000. Additional periods of supervised release, fines, and restitution also may be imposed, however, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Jose A. Olivera is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Baton Rouge Man Pleads Guilty to Trafficking More than 500 Grams of MethamphetamineRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DEVONTA DUNN, age 24, of Baton Rouge, pleaded guilty Friday, February 15, 2019 to a one-count indictment charging him with trafficking 500 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(A).
According to court documents, Dunn was arrested at the Louis Armstrong New Orleans International Airport after he arrived from Los Angeles with nearly four kilograms of methamphetamine hidden inside snack food boxes in his checked bag. DUNN pleaded guilty to possessing with the intent to distribute 500 grams or more of methamphetamine, for which he faces a term of imprisonment of at least ten years and up to life, a fine of up to $10,000,000, and at least five years of supervised release following any term of imprisonment.
Judge Milazzo set sentencing for Wednesday, May 15, 2019.
United States Attorney Strasser praised the work of the Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, St. Charles Parish Sheriff’s Office, and Kenner Police Department. Assistant U.S. Attorney Jeffrey Sandman is in charge of the prosecution.
Ash Man Sentenced to 120 Months in Prison for Drug Trafficking & Firearm OffenseRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, Chief United States District Judge Terrence W. Boyle sentenced VICTOR DEMETRIOUS WATSON, 27, of Ash, North Carolina, to 120 months in prison, followed by 5 years of supervised release.
WATSON was charged in a three-count Superseding Indictment filed on May 16, 2018. On August 13, 2018, WATSON pled guilty to one count of Possession with Intent to Distribute a Quantity of Heroin, and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
An investigation was initiated by the Brunswick County Sheriff’s Office (BCSO) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) after receiving anonymous information regarding WATSON being in possession of stolen firearms. On December 6, 2017, the BCSO received an anonymous tip that WATSON was in possession of numerous stolen firearms and was in the process of “moving” them.
On December 6, 2017, in an attempt to determine if WATSON was in possession of stolen firearms, two confidential informants, CI1 and CI2, were sent to WATSON’S home in order to conduct a controlled purchase of heroin. The CIs met WATSON at the back door of WATSON’S home and purchased 10 bindles1 (1 gram) of heroin from him for $80. Based upon the CIs’ observations, WATSON possessed an additional 40 to 50 bindles of heroin.
Investigators executed a search of WATSON’S home and vehicle on December 7, 2017. Law enforcement located a .40 caliber semi-automatic handgun and a 9 mm semi-automatic handgun, one box of .40 caliber ammunition, one box of 9 mm ammunition, 44 bags (4.4 grams) of heroin, 23 units of Alprazolam, 1 unit Acetaminophen/Oxycodone hydrochloride (10 milligrams), and $330 which included the $80 of buy money. Prior to being taken into federal custody, WATSON admitted the firearms and heroin were his. Law enforcement determined the firearms had not been reported stolen.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
This case was brought by the United States Attorney’s Office through partnership with the Brunswick County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Scott A. Lemmon.
Ada Man Sentenced to 188 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Scot Edwin Anderson, age 61, of Ada, Oklahoma, was sentenced to 188 months imprisonment and 3 years of supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). The charges arose from an investigation by the Pontotoc County Sheriff’s Office, the District 22 Drug Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about July 31, 2018, within the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with intent to distribute a mixture or substance containing a detectible amount of methamphetamine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “Methamphetamine destroys lives and communities, and Meth dealers deliver that destruction. This joint investigation and the resulting prosecution is part of our ongoing efforts to work with federal, state, local, and tribal law enforcement agencies to combat violent crime and disrupt drug distribution networks. Open lines of communications and cooperation among agencies leads to successful outcomes for the communities that we serve together.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Kristin Harrington represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Activity in the United States Attorney's OfficeRead the Press Release
Chief Federal District Court Judge Scott W. Skavdahl sentenced STEWART MILES DOTY, 62, of Big Piney, Wyoming on February 8, 2019 for manufacture, distribution, and possession with intent to manufacture and distribute marijuana, money laundering conspiracy, and laundering of monetary instruments. Doty was arrested in Big Piney, Wyoming. He received eighteen months of imprisonment as to counts 1 and 3 to be served concurrently, to be followed by thirty-six months of supervised release, and ordered to pay restitution in the amount of $500.00. The Sublette County Sheriff’s Office, Wyoming Division of Criminal Investigation, Internal Revenue Service and US Drug Enforcement Administration investigated this case.
Beginning no later than 2011, Doty operated an organic tomato business called Wyomatoes from his residence in Big Piney. There, Doty grew tomatoes and other vegetables in greenhouses for sale at farmer’s markets and to retailers. Doty’s business fell on hard times, so he began growing and selling marijuana instead of tomatoes in 2016.
In August 2017, Sublette County Sheriff’s Office deputies and Wyoming Division of Criminal Investigation special agents served a search warrant on Doty’s Big Piney property. Deputies and agents found approximately 47 pounds of processed marijuana, several thousand dollars in cash, and marijuana stalks and root-balls. Doty was present for the search warrant and admitted he had been cultivating and selling marijuana.
Special agents with the U.S. Drug Enforcement Administration and the Internal Revenue Service reviewed Doty’s financial records. These records showed that Doty had been depositing cash from marijuana sales into his business bank account to make it appear as if he had earned the money from his tomato business.
Federal District Court Judge Alan B. Johnson sentenced JOSE BEDOLLA-VASQUEZ, 27, of Mexico on February 12, 2019 for illegal re-entry of a previously deported alien into the United States. Bedolla-Vasquez was arrested in Casper, Wyoming. He received six months of imprisonment and order to pay a $100.00 special assessment. The U.S. Department of Homeland Security investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced STEVEN THOMAS ATWELL, 56, of Cheyenne, Wyoming on February 11, 2019 for felon in possession of a firearm and ammunition. Atwell was arrested in Cheyenne, Wyoming. He received sixty months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
Federal District Court Judge Alan B. Johnson sentenced JONATHON DANIEL WRIGHT, 37, of Laramie, Wyoming on February 2, 2019 for escape from custody. Wright was arrested in Laramie, Wyoming. He received eight months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The United States Marshals Service investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced KENNETH DARRYL WASHINGTON, 47, of Olympia Fields, Illinois on February 4, 2019 for felon in possession of a firearm and ammunition. Washington was arrested in Grand Junction, Colorado. He received forty-six months of imprisonment, to be followed by twenty-four months of supervised release, and ordered to pay a $100.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
Federal District Court Judge Alan B. Johnson sentenced FELIPE RODRIGUEZ-FERNANDEZ, 39, of Tamaulipas, Mexico on February 6, 2019 for illegal re-entry of a previously deported alien into the United States. Rodriguez-Fernandez was arrested in Casper, Wyoming. He received time served plus ten days to allow for deportation proceedings and ordered to pay a $100.00 special assessment. The U.S. Department of Homeland Security investigated this case.
Friday 15 February 2019
William P. Barr Confirmed as 85th Attorney General of the United StatesRead the Press Release
President Donald J. Trump participates in swearing-in of William P. Barr administered by U.S. Supreme Court Chief Justice John Roberts on February 14, 2019. Attorney General Barr's wife, Christine, holds the Bible. (Official White House Photo by Tia Dufour)
WASHINGTON – Today, William P. Barr was confirmed by the U.S. Senate to be the 85th Attorney General of the United States. Following the vote, President Donald J. Trump participated in the swearing-in of Mr. Barr during a ceremony in the Oval Office of the White House, where U.S. Supreme Court Chief Justice John Roberts administered the oath of office. Mr. Barr’s wife, his three daughters and their spouses, and his grandchildren attended the ceremony. Mr. Barr joins John Crittenden (1841 and 1850-1853) as one of only two people in U.S. history to serve twice as Attorney General.
Mr. Barr is rejoining the Department of Justice where he previously served as the 77th Attorney General of the United States from 1991 to 1993 under President George H.W. Bush. Mr. Barr also served as the Deputy Attorney General from 1990 to 1991 and as the Assistant Attorney General of the Office of Legal Counsel from 1989 to 1990. While serving at the Department, Mr. Barr helped create programs and strategies to reduce violent crime and was responsible for establishing new enforcement policies in a number of areas including financial institutions, civil rights, and antitrust merger guidelines. Mr. Barr also led the Department’s response to the Savings & Loan crisis; oversaw the investigation of the Pan Am 103 bombing; directed the successful response to the Talladega prison uprising and hostage taking; and coordinated counter-terrorism activities during the First Gulf War.
Most recently, Mr. Barr served as Of Counsel at Kirkland & Ellis. Before his work at Kirkland & Ellis, he served as Executive Vice President and General Counsel for GTE Corporation from 1994 until 2000 and as Executive Vice President and General Counsel of Verizon from 2000 to 2008.
Mr. Barr served as a law clerk under Judge Malcolm Wilkey of the U.S. Court of Appeals for the District of Columbia Circuit, and from 1982 to 1983, served on the White House Domestic Policy Staff under President Ronald Reagan. He received his A.B. in government in 1971 and his M.A. in government and Chinese studies in 1973, both from Columbia University. From 1973 to 1977, Mr. Barr served in the Central Intelligence Agency before receiving his J.D. with highest honors from George Washington University Law School in 1977.
The Department of Justice welcomes back Attorney General Barr and looks forward to his leadership in upholding the rule of law and protecting the rights of all Americans.
Vermont U.S. Attorney’s Office Collects $3,743,362.58 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
U.S. Attorney Christina E. Nolan announced today that the District of Vermont collected $3,743,362.58 in criminal and civil actions in Fiscal Year 2018. Of this amount, $704,388.04 was collected in criminal actions and $3,038,974.54 was collected in civil actions.
Additionally, the U.S. Attorney’s Office in Vermont worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $19,390.41 in cases pursued jointly by these offices, all of which were results in criminal actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.“The District of Vermont’s federal prosecutors and Civil Division attorneys work tirelessly to protect our citizens, to recover financial losses they sustain from criminal conduct, and to safeguard precious taxpayer resources,” said United States Attorney Christina E. Nolan. “Their efforts enabled us to achieve justice and recoup a significant amount of taxpayer dollars in Fiscal Year 2018.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
United States Announces Memorandum of Understanding Ensuring Compliance with Voter Registration RequirementsRead the Press Release
The Department of Justice today announced that it has entered into a Memorandum of Understanding with the State of Connecticut through the Connecticut Secretary of the State to help ensure compliance with federal law regarding maintenance of voter registration lists. Under the agreement, Connecticut will coordinate its statewide voter registration database with Connecticut Department of Public Health records to identify registered voters who have died.
Section 303 of Help America Vote Act of 2002 (HAVA) requires states to implement a computerized statewide voter registration list and, along with Section 8 of the National Voter Registration Act of 1993 (NVRA), includes requirements for maintaining this computerized list. As part of these requirements, a state must coordinate its voter registration lists with state agency records on death for purposes of removing the names of deceased voters from its voter rolls.
“The requirements of HAVA and the NVRA help ensure that voter registration records remain accurate and current,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice appreciates Connecticut’s cooperative efforts to ensure its list maintenance procedures comply with the protections and procedures of HAVA and the NVRA.”
The parties’ agreement requires the Connecticut Secretary of the State to create and implement an administrative plan that includes procedures to coordinate the State’s voter registration list with Connecticut Department of Health records on deaths. The agreement also requires the state to report certain data relating to the coordination of these databases and list maintenance activities resulting from that coordination.
More information about the Help America Vote Act, the National Voter Registration Act, and other federal voting laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section. Complaints about voter registration practices may be reported to the Civil Rights Division at 1-800-253-3931.
US Attorney's Office Collects Nearly $40 Million in 2018Read the Press Release
MADISON, WIS. – U.S. Attorney Scott C. Blader announced today that the Western District of Wisconsin collected $39,852,608 in criminal and civil actions in Fiscal Year 2018. Of this amount, $36,880,504 was collected in criminal actions and $2,972,104 was collected in civil actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell IV of the Executive Office for U.S. Attorneys.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
U.S. Attorney’s Office in Kansas Collects $6.5 Million in Civil and Criminal Actions in Fiscal Year 2018Read the Press Release
TOPEKA, KAN. – The U.S. Attorney’s Office for the District of Kansas collected $6.5 million in criminal and civil actions in FY 2018, U.S. Attorney Stephen McAllister said today. Of this amount, $3.9 million was collected in criminal actions and $2.6 million was collected in civil actions.
“Our attorneys and investigators are very successful in recovering money owed to victims and to the government,” McAllister said. “They are one of the reasons that crime really doesn’t pay.”
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Recent examples in the District of Kansas include recovering more than $140,000 from a CPA who made false statements on tax returns, more than $77,000 from a former Kansas bank teller who embezzled the money, more than $185,000 from the owner of a diagnostic testing facility who was convicted of health care fraud and more than $200,000 from a man who was convicted of failing to report income from illegal bookmaking.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
U.S. Attorney’s Office for the Eastern District of Tennessee Collects $ $9,741,070.01 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
KNOXVILLE, Tenn. - U.S. Attorney J. Douglas Overbey announced today that the Eastern District of Tennessee collected $ $9,741,070.01 in criminal and civil actions in Fiscal Year 2018. Of this amount, $7,782,647.37 was collected in criminal actions and $1,958,422.64 was collected in civil actions.
Additionally, the Eastern District of Tennessee worked with other U.S. Attorney’s offices and components of the Department of Justice to collect an additional $42,948,325.81 in cases pursued jointly with these offices. Of this amount, $32,298.67 was collected in criminal actions and $42,916,027.14 was collected in civil actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
U.S. Attorney J. Douglas Overbey praised the hard work of the Assistant U.S. Attorneys and the Monetary Recovery Unit in his office stating, “In addition to protecting the public by prosecuting and locking up criminals, the overall mission of the U.S. Attorney’s Office includes helping to compensate victims to the fullest extent possible. Restitution, fines and assessments collected by our office benefit all victims of crime. Collected restitution is paid directly to the victims of the crimes for whom it was ordered, while collected fines and assessments are paid to the Crime Victims’ Fund to fund state victim compensation and assistance programs.”
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the Department of Education.
Additionally, the U.S. Attorney’s office for the Eastern District of Tennessee, working with partner agencies and divisions, collected $5,539,839.00 in asset forfeiture actions in FY 2018. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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U.S. Attorney’s Office Collects over $10,000,000 in Fiscal Year 2018Read the Press Release
OKLAHOMA CITY – The Western District of Oklahoma collected $10,624,311 in the fiscal year ending Sept. 30, 2018, announced Robert J. Troester of the U.S. Attorney’s Office.
The office secured $7,994,284.09 through collection efforts in criminal and civil cases. Of this amount, $3,062,214.10 was collected in criminal actions and $4,932,069.99 was collected in civil actions. The office also deposited $2,630,027 into the Asset Forfeiture Fund as a result of criminal, civil, and administrative forfeiture proceedings. Total collections, including forfeiture, exceeded the cost of operating the office by more than two million dollars.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in Fiscal Year 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for U.S. Attorneys’ Offices across the nation.
"In addition to keeping communities safe, the U.S. Attorney’s Office prioritizes recovering money for victims of crime and for taxpayers," said Mr. Troester. "I am proud that my team uses the tools Congress has provided to seek to achieve financial justice in criminal and civil litigation involving the United States."
"The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work," said James A. Crowell, IV, Director of the Executive Office for U.S. Attorneys.
Among criminal cases, the U.S. Attorney’s Office collected $100,000 from Christopher Bateman Slater, a Guymon physician who pleaded guilty to distributing the opiate codeine without a medical purpose. The court imposed a $100,000 fine on Dr. Slater, in addition to an eight-month prison term. Among civil cases, the office collected $670,000 from Southwest Orthopaedic Specialists, PLLC, and physicians who owned that company. In July 2018, Southwest Orthopaedic Specialists settled allegations that it submitted false claims to Medicare, Medicaid, and Tricare, which are health-care programs funded in whole or in part by the federal government.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
In the Department of Justice as a whole, the largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the Department of Education.
U.S. Attorney's Office collects nearly $25 million for taxpayers from criminal and civil actionsRead the Press Release
SAVANNAH, GA: U.S. Attorney Bobby L. Christine announced today that the Southern District of Georgia recovered more than $24.5 million in criminal and civil actions in Fiscal Year 2018. The total is nearly four times the $6.25 million appropriated for operation of the Southern District office for 2018.
Of this total amount, $5.2 million was recovered in criminal actions, $14.6 million was recovered in civil actions and $4.7 million was recovered from defendants through the asset forfeiture process.
Included within this total is $9.1 million that was recovered from cases jointly pursued by the Southern District of Georgia, other U.S. Attorney’s Offices and other components of the Department of Justice.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14.8 billion in collections in FY 2018 is nearly seven times the appropriated $2.13 billion budget for the 94 U.S. Attorneys’ offices.
“Our office’s Asset Recovery Unit, led by Assistant U.S. Attorney Xavier A. Cunningham, along with our Affirmative Civil Enforcement Unit, led by Assistant U.S. Attorney J. Thomas Clarkson, have performed outstanding work in recovering restitution for crime victims and providing the legal legwork that substantiates the fines, penalties and forfeitures from criminal and civil defendants,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “This effort emphasizes the importance of holding people and entities financially accountable for their actions, and providing a measure of restorative justice to those harmed by illegal activity.”
Examples of significant collections during Fiscal Year 2018 include:
- In May 2018, in the nation’s largest settlement of its kind involving allegations of drug diversion at a hospital, Effingham Health System agreed to pay $4.1 million to resolve allegations that the company failed to guard against theft and loss of controlled substances;
- In April 2018, the Southern District recovered $245,228 from defendant Brandon Sapp, the convicted leader of a WIC and Food Stamp fraud ring; and,
- In August 2018, the Southern District recovered $82,761 from defendant Michael Brian Anderson, a former Savannah shrimper who was convicted of money laundering and defrauding U.S. Customs and Border Protection (CBP), by filing false claims under the Continued Dumping and Subsidy Offset Act of 2000.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Nationwide, the largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
U.S. Attorney's Office Collects $13,722,965.04 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
St. Louis, MO – U.S. Attorney Jeff Jensen announced today that the Eastern District of Missouri collected $13,722,965.04 in criminal and civil actions in Fiscal Year 2018. Of this amount, $8,191,278.06 was collected in criminal actions and $5,531,686.98 was collected in civil actions.
Additionally, the Eastern District of Missouri worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $11,198,243.98 in cases pursued jointly by these offices. Of this amount, $5,301.98 was collected in criminal actions and $11,192,942.00 was collected in civil actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
Three Men Charged with Defrauding Illinois Company of More Than $1.5 MillionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a grand jury in New Haven has returned a seven-count indictment alleging that JOHN T. FINKLE III, 57, of East Haven, Connecticut; STEVEN C. GOLD, 46, of Pleasant Prairie, Wisconsin, and KENNETH J. PEDROLI, 59, of Stony Brook, New York, operated a scheme that defrauded an Illinois-based company of more than $1.5 million.
The indictment was returned on February 13, and Finkle surrendered to law enforcement this morning. Following his arrest, he appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven, entered a plea of not guilty to the charges, and was released on a $500,000 bond secured by his East Haven residence and a rental property in East Haven owned by his wife. Gold and Pedroli will be arraigned in the near future.
As alleged in the indictment, Finkle and Gold were employed by an Illinois-based supplier of electronic components, identified in the indictment as “Company A.” Finkle was primarily employed in sales for the company and Gold operated the accounting and billing systems for the company. Pedroli purchased electronic components from Company A for a business he operated in Islandia, New York.
The indictment alleges that between approximately February 2015 and December 2018, Finkle, Gold and Pedroli defrauded Company A through a scheme involving purchases that Pedroli made from the company. As part of the scheme, Finkle instructed Pedroli to place his orders and list prices at a fraction of Company A’s published prices. After Finkle submitted Pedroli’s orders to Company A at the discounted prices, the products were shipped from Company A to Pedroli. Finkle instructed Pedroli to pay only a portion of the invoiced price and to make the payments directly to Finkle. Pedroli then wrote checks to Finkle, which Finkle deposited into his personal bank account.
It is further alleged that Finkle instructed Gold to apply fictitious credits to the invoices in order to reduce the amount of money Pedroli owed Company A. Finkle then wrote checks to Gold, which Gold deposited into his personal bank account.
It is alleged that Company A was defrauded of more than $1.5 million, and that Finkle profited more than $500,000, through this scheme.
The indictment charges each defendant with one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years. The indictment also charges Finkle with two counts of wire fraud, Gold with two counts of wire fraud, and Pedroli with two counts of mail fraud. Each of these charges also carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Texas Men Sentenced for Conspiracy to Distribute CocaineRead the Press Release
LONDON, Ky. – Christopher Lee Serrano, 45, of Austin, Texas and Pedro Vasquez Cavazos, 63, of Mercedes, Texas, were sentenced to federal prison Thursday, by United States District Judge Robert E. Wier, for conspiracy to distribute nearly five kilograms of cocaine. Serrano was sentenced to 262 months and Cavazos was sentenced to 120 months.
In February 2018, the Federal Bureau of Investigation seized 4.95 kilograms of cocaine, which Serrano and Cavazos transported from Austin, Texas to London, Kentucky. Serrano and Cavazos had hidden the cocaine in a speaker box under the passenger seat of Serrano’s Chevy truck. Prior to their arrest, the pair assured the buyer they could fulfill bi-weekly deliveries for similar amounts. In November 2018, Serrano and Cavazos entered pleas of guilty, admitting that they orchestrated the delivery of the cocaine to Laurel County, Kentucky for distribution.
Both men had prior federal felony drug trafficking convictions, from the Western District of Texas. Under federal law, Serrano and Cavazos must serve 85 percent of their prison sentences; and upon their release, they will be under the supervision of the United States Probation Office for eight years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; Richard Sanders, Commissioner of the Kentucky State Police; and Darrel Kilburn, Chief of the London Police Department, jointly made the announcement.
The FBI, London Police Department, and Kentucky State Police conducted the investigation. The United States was represented by Assistant United States Attorney Jenna E. Reed.
Syracuse Man Charged with Robbery and MurderRead the Press Release
SYRACUSE, NEW YORK – William D. Wood, Jr., 33, of Syracuse, New York, appeared today on an indictment charging him with the September 15, 2018, robbery of Chili’s Bar & Grill in Dewitt, New York, and the murder of two employees by shooting them to death in the course of that robbery, announced United States Attorney Grant C. Jaquith and John Devito, Special Agent in Charge of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division.
Federal law proscribes murder through the use of a firearm during or in relation to a crime of violence such as a robbery that interferes with commerce. The indictment also provides notice of eight special findings, including commission of the murders in the expectation of the receipt of something of pecuniary value, commission of the murders after substantial planning and premeditation, and the intentional killing and attempt to kill more than one person in a single criminal episode.
The defendant was arraigned today in Syracuse, New York, before United States Magistrate Judge David E. Peebles and detained pending a trial before Senior United States District Court Judge Thomas J. McAvoy.
Under the federal statutes cited in the indictment, the potential maximum penalty for the robbery charged is imprisonment for 20 years and the potential maximum for each of the murders charged is the death penalty. The Attorney General of the United States will decide whether to seek the death penalty based upon the recommendation of the U.S. Attorney for the Northern District of New York and after carefully considering the defendant’s background and the circumstances of the crimes charged in the indictment.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Town of Dewitt Police Department, and is being prosecuted by Assistant U.S. Attorney Lisa Fletcher.
South Florida Securities Lawyer Sentenced to Seven Years’ Imprisonment for Role in Pump-and-Dump Securities Fraud SchemeRead the Press Release
A Boca Raton attorney was sentenced today to 84 months’ imprisonment and ordered to pay restitution of $19.7 million to 2,156 investors, after previously being convicted by a federal jury of 33 counts of conspiracy, securities fraud, wire fraud, and money laundering offenses. This case involved a scheme to fraudulently register public shell companies with the U.S. Securities and Exchange Commission (SEC), issue a class of purported free-trading shares that were secretly controlled, and sell these shares as part of pump-and-dump stock swindles.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
James M. Schneider, 77, a securities lawyer from Boca Raton, Florida, was convicted on December 7, 2018, by a federal jury after a two-week trial in Miami (Case No. 17-20712-CR-FAM(s)). Schneider was convicted of conspiracy to commit securities and wire fraud, in violation of Title 18, United States Code, Section 1349; securities fraud, in violation of Title 18, United States Code, Section 1348; wire fraud, in violation of Title 18, United States Code, Section 1343; conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); and money laundering, in violation of Title 18, United States Code, Section 1957. In addition to the sentence of 84 months’ imprisonment, U.S. District Judge Federico A. Moreno ordered restitution in the amount of $19.7 million to be paid to 2,156 investors and forfeiture of $4.8 million.
According to evidence introduced at trial, from approximately March 2008 through the end of 2013, Schneider participated in a fraudulent “shell factory” scheme, in which the conspirators created approximately 20 shell companies and filed numerous false documents with the SEC. The filings falsely stated that the companies were controlled by a nominee chief executive officer (CEO). The straw CEO would be listed as the owner of the control block of shares but in reality the companies were controlled by the undisclosed principals. The control block of shares listed in the name of the sole officer were deemed restricted and could not be sold to the public. The principals would register an offering of shares with the SEC and put these shares the names of various shareholders for each company to make it appear that these shares were owned by persons unaffiliated with the company. These shares would later be deemed “free trading” and secretly sold to shell buyers. Using false and fraudulent documentation describing the companies’ business purpose and share ownership, the conspirators would then obtain approval to sell the companies’ shares publicly in the open market. Thereafter, the conspirators would sell the companies to shell buyers who would secretly obtain both the control shares and the purported “free trading” shares without disclosure to the SEC or the investing public. These buyers would then use the shares to conduct pump-and-dump stock swindles and other securities manipulation schemes. Evidence at trial showed that the shares of the fake companies were then sold to investors for millions of dollars.
Schneider, according to the evidence introduced at trial, was a Florida attorney who authored false and fraudulent legal opinion letters indicating that shares of the 20 companies that were owned by persons who were not “affiliates,” when in truth and in fact the shares were owned and controlled by the conspirators. Schneider also created false billing records to make it appear that he was performing work for, and taking direction from, the straw CEOs. In reality, he took his direction from his co-conspirators, who sought to keep their names off publicly filed documents. Schneider also performed so-called escrow services for the sale of the shell entities, including the illegal sale of the purported free trading shares, and wired more than $5.6 million in proceeds to bank accounts controlled by the conspirators. Schneider did this, according to evidence introduced at trial, without authorization from the named shareholders or verification that the persons whose names were listed on escrow agreements authorized or approved these transfers.
Eleven other defendants have been convicted in the Southern District of Florida in connection with the Shell Factory Fraud investigation: John Ahearn and Andrew Wilson, Case No. 17-20883-CR-KMW; Yelena Furman, Case No. 17-20713-CR-CMA; David Lubin, Case No. 17-20508-CR-MGC; Sheldon Rose and Ian Kass, Case No. 16-20706-CR-JEM; Steven Sanders and Alvin S. Mirman, Case No. 16-20572-CR-CMA; Daniel McKelvey and Jeffrey Lamson, Case No. 16-20546-CR-RNS; and, Delaney Equity Group LLC, Case No. 18-20336-CR-CMA. Defendant Myron Gushlak has also been charged but his case was transferred to fugitive status in Case No. 17-20713-CR-CMA. These convicted defendants included two attorneys who practices securities law (Lubin and Wilson), a registered securities representative (Kass), a stock transfer agent (Ahearn), a securities broker-dealer (Delaney Equity Group LLC), an accountant (Lamson), and five stock promoters (Sanders, McKelvey, Mirman, Rose, and Furman).
Previously, the SEC filed parallel civil enforcement actions against Schneider and the other criminal defendants charged in the Shell Factory Fraud investigation.
The United States Attorney commended the investigative efforts of the FBI’s Miami Field Office, and also thanked the SEC’s Miami Regional Office for their assistance with the ongoing Shell Factory Fraud investigation. The United States was represented at trial by Assistant U.S. Attorneys Jerrob Duffy and Christopher B. Browne, and Special Assistant U.S. Attorney Jeffrey T. Cook, and forfeiture is being handled by Assistant U.S. Attorney Alison W. Lehr.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Sex Trafficker Sentenced to 15 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man was sentenced today to 15 years in prison for sex trafficking young women and being a felon in possession of a firearm.
According to court documents and evidence presented at trial, Cornell Devore Rhymes, 32, conspired with others, including Justin Robinson and Markus Plummer, who were previously convicted, to force and coerce young women into commercial sex work during the summer of 2017. Over a period of approximately three months, Rhymes and the others recruited young women, including a minor, into commercial sex work. The men advertised the women for sex acts, set their “dates,” and collected and retained the profits. Prior to trial, Rhymes had pleaded guilty to being a felon in possession of a firearm, after law enforcement discovered a gun in his home during the execution of a search warrant.
This matter was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is composed of FBI agents, along with detectives from the Fairfax County Police, Arlington County Police, Prince William County Police, Loudoun County Sheriff’s Office, Leesburg Police, Alexandria City Police, Washington Metropolitan Police, Fauquier County Sheriff’s Office, George Mason University Police, United States Marshal’s Service, and agents of various Office of Inspector Generals. This matter was brought to the task force by the Prince William County Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, and Barry M. Barnard, Chief of Prince William County Police, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorneys Whitney Dougherty Russell and Raizza Ty 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-22. Information about Justin Robinson and Markus Plummer’s cases can be found by searching for Case No. 1:17-cr-310.
San Francisco Man to Face Federal Firearm ChargesRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Michael Sandy Abadilla for possessing illegal and unregistered firearms and equipment, announced United States Attorney David L. Anderson and United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) Special Agent in Charge Rayfield Roundtree. The indictment was filed February 12, 2019, and unsealed today.
According to the indictment, on January 16, 2019, Abadilla, 52, of San Francisco, possessed five full automatic conversion switches. Full automatic conversion switches are mechanical parts designed to convert a firearm from semi-automatic to fully-automatic, and as such constitute “machineguns” as defined by federal law. The indictment also charges that the full automatic conversion switches were not registered to the defendant in the National Firearms Registration and Transfer Record (“NFRTR”). In addition, Abadilla was in possession of two firearm silencers that also were not registered to him in the NFRTR. Abadilla is charged with one count of possession of illegal machineguns, in violation of 18 U.S.C. § 922(o), and two counts of possession of unregistered firearms, in violation of 26 U.S.C. § 5861(d).
An indictment merely alleges that a crime has been committed and Abadilla, like all defendants, is presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the Section 922(o) violation, Abadilla faces a maximum statutory penalty of 10 years in prison and a fine of $250,000. If convicted of either of the Section 5861(d) violations, Abadilla faces a maximum statutory penalty of 10 years in prison and a fine of $10,000, per count.
Abadilla was arrested yesterday and made an initial appearance before U.S. Magistrate Judge Laurel Beeler today. Magistrate Judge Beeler scheduled Abadilla’s next appearance for February 20, 2019, for a detention hearing.
Assistant United States Attorney Nicholas Walsh is prosecuting this case with assistance from Margoth Turcios. This case is the result of an investigation by the ATF.
Robert Edward Howland Sentenced to Serve 167 Months in Federal Prison on Armed Robbery and Firearm ChargesRead the Press Release
GREENEVILLE, Tenn. – On February 13, 2019, Robert Edward Howland, 47, of Bristol, Tennessee, was sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Judge, to serve a total of 167 months in federal prison. Howland was sentenced to 155 months for the 2016 armed robbery of the Big Orange Market in Bristol, Tennessee. He received an additional 12 months in prison, which will run consecutively, for violating the terms of his supervised release from a prior conviction. Upon his release from prison, he will be supervised by U.S. Probation for the remainder of his life.
According to the plea agreement on file with the U.S. District Court, on November 26, 2016, Howland admitted to robbing the Big Orange Market by brandishing a semiautomatic pistol, pointing it at the clerk and putting it against her back. In addition to committing the robbery, he walked the clerk out of the store at gunpoint and attempted to force her inside his truck. A combination of the clerk yelling for help and other customers rushing to her rescue resulted in Howland speeding off alone. After the police located him, Howland refused to stop and led officers on a lengthy four county pursuit from Bluff City, Tennessee, to Jefferson City, Tennessee. When the officers finally stopped him and approached his vehicle, Howland was holding the same firearm he used to rob the store.
At the time of this offense, Howland was on supervised release from a December 2011 conviction in U.S. District Court for the felony offense of failing to register as a sex offender.
Law enforcement agencies participating in the investigation included the Sullivan County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Wayne Taylor represented the United States in court proceedings.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Rapid City Woman Sentenced for Illegal Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of Possession of a Firearm by a Prohibited Person was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Gabrielle M. Koenig, age 45, was sentenced on February 13, 2019, to 37 months in federal prison, to be followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Koenig was charged on January 23, 2018. The conviction stems from Koenig knowingly being in possession of several firearms, while unlawfully using and distributing methamphetamine.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted and tried the case.
Koenig was remanded to the custody of the U.S. Marshals Service.
Previously Convicted Sex Offender Sentenced to 24 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III today sentenced Gary Keith Pinkowski, Jr., age 33, of Catonsville, Maryland, to 24 years in federal prison, followed by lifetime supervised release, for possession of child pornography, which he obtained using public computers at a library. Pinkowski has prior sex offense convictions in Maryland and Delaware.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Terrence B. Sheridan of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement and other court documents, on October 22, 2017, Pinkowski attempted to produce two images of child pornography. Specifically, Pinkowski went swimming at a recreational facility in Baltimore County. Instead of using the locker room specifically designated for adult males, Pinkowski brought a digital camera into a shower stall in the “Boys” locker room, and waited for 30 minutes until a child, whom the defendant thought was between five and seven years old, entered the shower stall next to him.
Despite knowing that the child was accompanied by his father, Pinkowski admitted that he reached under a partition between the shower stalls and took two photographs of the six-year-old boy, who was showering in that stall. The boy reported Pinkowski’s conduct to his father, who notified the facility. Although he had not seen the person in the stall next to the boy, the father noticed a pair of black and green plaid swim trunks hanging over the shower stall. Pinkowski had already left the facility on his bicycle, but staff members recognized the description of the swim trunks as belonging to Pinkowski and provided his description and contact information to Baltimore County Police officers.
Officers found Pinkowski near the men’s shelter where he lived and recovered a digital camera containing an SD memory card, a second SD memory card, and multiple USB drives. One of the SD cards contained photos of the boy, who was showering in his swim trunks, as well as child pornography. Pinkowski admitted that he used one of the USB drives to access child pornography using the public computers at a library. The USB drive contained a file that ran software that permits anonymous communication on the Internet. Because the library computer would not permit downloads, Pinkowski used his digital camera to take videos and pictures of the computer screen.
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 the FBI, HSI-Baltimore, the Baltimore County Police Department, and the Baltimore County State’s Attorney’s Office for their work in this investigation and thanked Assistant U.S. Attorneys Jeffrey J. Izant and Sandra Wilkinson, who prosecuted the case.
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Phoenix, Arizona Man Sentenced to 32 Months for His Role in an Alabama Phishing ScamRead the Press Release
Montgomery, Alabama- On Wednesday, February 13, 2019, Iosif Florea, 42, of Phoenix, Arizona, was sentenced to 32 months in federal prison for his part in a “phishing” scam that impacted Alabama residents, announced United States Attorney Louis V. Franklin, Sr., Alabama Attorney General Steve Marshall, and FBI Special Agent in Charge James Jewell. Following his two-year and eight month prison sentence, he will be subject to three years of supervised release. He was also ordered to pay $17,786.50 in restitution.
Florea previously pled guilty to charges of bank fraud and aggravated identity theft following his indictment in May of 2018 by a federal grand jury. Phishing scams use email or malicious websites to solicit personal information by posing as a trustworthy organization.
Evidence showed that Florea was involved in a scheme that occurred in March and June of 2015. During that time, text messages were sent to nearly 500,000 people in Alabama. The messages contained a link to a website that claimed to be that of the Alabama State Employees Credit Union (ASECU) and requested the recipients use the link to verify account information. The link actually took the recipients to a fraudulent website where they were prompted to enter sensitive account information, such as their names, debit card numbers, the card’s expiration date, the security code from the back of the card, and their personal identification numbers (PINs). This information was then loaded onto blank cards. During the two-month period, there were videos of Florea in Phoenix, Arizona, Los Angeles, California, and Las Vegas, Nevada, withdrawing money at ATMs using cards with stolen information from approximately 30 different accounts.
“It is important that the public be aware of these types of scams, and immediately report any suspicious account activity to their bank or credit union,” stated United States Attorney Franklin. “When a bank’s fraud department is alerted quickly, they can take actions to limit the losses to their customers and assist law enforcement to identify the thieves. The public should also know that my office will continue to work with our law enforcement partners to protect their identities from these types of schemes.”
“I am pleased that Iosif Florea has been held to account and is being punished for his wrongdoing,” said Attorney General Steve Marshall. “This case is an excellent example of how teamwork among law enforcement agencies is vital to shutting down such scams, and it sends a strong message to cyber criminals who seek to target Alabamians that they will be tracked down and prosecuted. This case also serves as an important reminder that consumers must remain on guard when they receive messages that appear to be from trusted financial institutions. Always communicate directly with any bank or government agency by using verified contact information. Scammers can be very convincing with deceptive solicitations and links to fake web pages. Never respond directly to such texts, emails or phone calls. In this case, the vigilance of consumers and quick action by our investigators and other law enforcement helped to limit the potential for this criminal to inflict greater damage.”
“The criminal element in this country continues to evolve in the ways they divest our citizens of their property and earnings,” SAC Jewell stated. “The FBI pledges our support to our law enforcement partners in this continued fight and will remain committed to assisting in the prosecution of these criminals no matter what their method of theft may be.”
This case was investigated by the Alabama Attorney General’s Office and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S Attorneys Brandon Bates and Denise Simpson.
Pharmacist Who Previously Pleaded Guilty to Federal Drug Distribution Conspiracy Arrested for Murder for Hire, Witness Retaliation, and Selling Drugs While on ReleaseRead the Press Release
Baltimore, Maryland – On February 14, 2019, David Robinson, age 50, of Baltimore, Maryland, was arrested on a criminal complaint charging him with murder for hire, retaliating against a witness, and commission of a crime while on release. Robinson, a licensed pharmacist who owned and operated the Frankford Family Pharmacy, pleaded guilty on October 10, 2018, to a federal drug conspiracy involving the distribution of oxycodone and alprazolam outside the scope of professional practice and not for a legitimate medical purpose. Robinson was scheduled for sentencing on those charges today.
The new charges were announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Acting Commissioner Michael Harrison of the Baltimore Police Department.
“We have zero tolerance for any effort to intimidate or retaliate against witnesses,” said U.S. Attorney Robert K. Hur.
“This investigation and subsequent arrest is a perfect example of how pharmaceutical cases that involve doctors or pharmacists have the potential to be just as violent as a street gang case,” said Supervisory Special Agent Todd C. Edwards, spokesman for Drug Enforcement Administration Baltimore District Office.
According to the affidavit filed in support of the criminal complaint, on October 27, 2018, the Citi-Watch camera system captured a drug transaction, which led to the arrest of an individual, CS-2. A search of CS-2’s vehicle resulted in the recovery of two shoeboxes containing a total of 35 stock pharmacy bottles of the prescription medications Promethazine and Clonidine.
CS-2 agreed to cooperate with law enforcement and advised that David Robinson had provided the drugs found in the car. CS-2 stated that Robinson had provided drugs to CS-2 for the past three years, using prescriptions that Robinson knew were fraudulent. CS-2 reported that after the search warrant was executed at the pharmacy on June 27, 2017, Robinson began providing CS-2 with case lots of boxes of medications in exchange for cash and that no prescription was required. Further, CS-2 reported that six months after the raid, Robinson was still ordering pills from his vendors.
According to the affidavit, after his arrest in 2017, Robinson mentioned the name of a person (“CS-1”) that Robinson believed had cooperated with law enforcement and led to his arrest in the drug conspiracy case, and told CS-2 that, “Jokers got to go.” CS-2 told law enforcement that Robinson requested CS-2 to assist in the murder of CS-1 and gave CS-2 information about CS-1. CS-2 told investigators that he/she did not know of anybody that could kill CS-1, but saw a chance to make some money from Robinson. CS-2 told law enforcement that he/she told Robinson that he/she knew someone who could do the “hit,” and that the fee would be $10,000, with $5,000 as a down payment and $5,000 when CS-1 was killed. According to the affidavit, in approximately late 2017, Robinson provided CS-2 with $5,000, which CS-2 deposited in the bank and used to pay bills. According to CS-2, Robinson regularly questioned CS-2 about the progress, but CS-2 would make excuses and tell Robinson that CS-1 was hard to locate.
The criminal complaint alleges that from December 13, 2018 through February 7, 2019, CS-2 made three controlled purchases of drugs from Robinson, at the direction of law enforcement, using cash provided by DEA agents. CS-2 purchased a total of 118 stock pharmacy bottles of Clonidine, each containing 100 tablets; and 24 stock pharmacy bottles of 50 mg Promethazine tablets, with each bottle containing 100 tablets. Robinson allegedly did not request, nor did CS-2 provide, a prescription for any of the drugs.
During a controlled purchase on January 24, 2019, CS-2 and Robinson allegedly discussed the murder of CS-1. CS-2 told Robinson he/she had found someone to commit the murder, but that person wanted additional money to commit the crime. According to the affidavit, Robinson agreed to pay the person the amount owed. On February 14, 2019, CS-2 called Robinson and told him that the murder was done and the guy would want his money. The complaint alleges that Robinson requested proof that the murder had been committed, and CS-2 showed Robinson several photos that appeared to show CS-1 dead. Robinson allegedly indicated that was the right person and provided CS-2 with additional cash. After the meeting, law enforcement arrested Robinson and CS-2.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 Department of Justice 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 DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Kenneth S. Clark and Samika N. Boyd, who are prosecuting the case.
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Participant in Fraudulent Opioid Prescription Conspiracy SentencedRead the Press Release
PROVIDENCE, RI – A Providence man who admitted to participating in a conspiracy to create and fill fraudulent prescriptions for opioid pills by using stolen medical practitioner identification numbers, unlawfully paying for many of the prescriptions with the use of medical insurance, and soliciting others to participate in the conspiracy, was sentenced today to 48 months in federal prison.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Michael Slonski, 48, to serve 3 years supervised release upon completion of his term of incarceration.
Slonski pled guilty on April 2, 2018, to conspiracy to distribute and possess with the intent to distribute Oxycodone.
Slonski’s sentence is announced by United States Attorney Aaron L. Weisman and Jeffrey Ebersole, Resident Agent in Charge of the United States Food and Drug Administration Office of Criminal Investigations.
At the time of his guilty plea, Slonski admitted to being part of a conspiracy that created fraudulent prescriptions utilizing the identities, Drug Enforcement Administration (DEA) identification numbers, and signatures of medical practitioners without their consent. Prescriptions for varying amounts of Oxycodone pills were written and presented to pharmacies by some members of the conspiracy and others working at the direction of the conspirators.
The scheme often times included the fraudulent use of medical insurance to pay pharmacies for the illicit prescriptions. Most of the Oxycodone pills gained with the use of fraudulent prescriptions were sold to others for distribution.
Slonski admitted that his role in the conspiracy included producing fraudulent Oxycodone prescriptions, passing or causing others to fill the prescriptions at pharmacies, and benefiting personally by selling fraudulently obtained pills.
Robert Rose, 52, of Providence, the acknowledged leader of the conspiracy, was sentenced on October 15, 2018, to 72 months in federal prison. Rose admitted to the Court that as the leader of the conspiracy, he paid for individuals’ identities, health care insurance information, and prescribing medical practitioners’ names and DEA numbers. Rose provided that information to others who participated in the conspiracy, and provided special paper necessary to produce the fraudulent prescriptions.
Rose also admitted that he ran the conspiracy for several months while incarcerated at the Adult Correctional Institution on an unrelated matter.
The case was prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by the United States Food and Drug Administration Office of Criminal Investigations.
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