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Friday 15 February 2019
Omaha Man Sentenced for Armed Credit Union RobberyRead the Press Release
United States Attorney Joe Kelly announced that Thomas Woodard, 38, was sentenced today in Omaha, Nebraska, by United States District Judge Robert F. Rossiter, Jr. for the crime of armed bank robbery. Judge Rossiter sentenced Woodard to 100 months’ imprisonment, a five-year term of supervised release, and ordered Woodard to make restitution in the amount of $27,278 to the SAC Credit Union.
On December 7, 2012, Woodard and co-defendant Joseph Lanckriet, robbed the SAC Federal Credit Union located at 219 S 23rd St. in Plattsmouth, NE and took $27,278 in credit union funds. The case went cold but ultimately Woodard and Lanckriet were apprehended in Sioux City, Iowa, in 2016, after they committed a robbery in that city in 2014.
This case was investigated by the Federal Bureau of Investigation, the Plattsmouth Police Department, and the Nebraska State Patrol.
Northern District of California Collects over $113 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
SAN FRANCISCO –U.S. Attorney David L. Anderson announced today that the Northern District of California collected $113,842,340.66 in criminal and civil actions in Fiscal Year 2018. Of this amount, $103,764,722.65 was collected in criminal actions and $2,354,162.58 was collected in civil actions.
Additionally, the Northern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2,102,220,943.25 in cases pursued jointly. Of this amount, $2,354,162.58 was collected in criminal actions and $2,099,866,780.67 was collected in civil actions.
Overall, 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 extraordinary work of the people employed in this office can never be quantified in dollars alone,” said U.S. Attorney Anderson. “Still, it is gratifying to know that during this past fiscal year, the employees of this office had a direct hand in retrieving funds in excess of the budget of the 94 United States Attorneys’ Offices combined. I am proud of the work of this office and we will continue to pursue vigorously all financial claims that arise from crime and other violations of federal law.”
“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.
Newark Man Convicted of Armed Jewelry Heist in Elizabeth, New JerseyRead the Press Release
NEWARK, N.J. – A Newark man was convicted in federal court today for his role in the September 2017 armed robbery of a jewelry exchange located in Elizabeth, New Jersey, U.S. Attorney Craig Carpenito announced.
William Valentin, 43, was found guilty of one count of conspiring to commit Hobbs Act robbery, one count of Hobbs Act robbery, one count of brandishing a firearm during a crime of violence, and one count of conspiring to use a firearm during a crime of violence. Valentin was convicted following a six-day trial before U.S. District Judge Madeline Cox Arleo in Newark federal court.
According to documents filed in this case and the evidence at trial:
On the morning of Sept. 5, 2017, four masked individuals, including Valentin, entered a jewelry exchange located in Elizabeth. Valentin then brandished a firearm at an employee while the other conspirators unloaded the contents of the store’s safes into large bags. Video surveillance showed Valentin and other conspirators entering the mall, approaching the jewelry exchange, and running out with the bags of jewelry. Afterwards, Valentin and his conspirators jumped into a black Audi and drove away.
In January 2018, Valentin was arrested in Holyoke, Massachusetts, with a backpack containing jewelry stolen from the Elizabeth exchange in his possession.
The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, which must be imposed consecutive to any other sentence imposed. The Hobbs Act, Hobbs Act conspiracy, and conspiracy to use a firearm in the commission of a crime of violence charges each carry a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, the Elizabeth Police Department, under the direction of Chief Ronald Simon, and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Michael A. Monahan, with the investigation leading to today’s guilty verdicts. He also thanked the Holyoke Police Department, under the direction of Chief James Neiswanger, for its assistance.
The government is represented by Assistant U.S. Attorneys Lauren E. Repole and Cari Fais of the U.S. Attorney’s Office in Newark.
Nevada U.S. Attorney's Office Collects over $7.2 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
LAS VEGAS, Nev. – United States Attorney Nicholas A. Trutanich announced today that the District of Nevada collected $7,219,564 in criminal and civil actions in Fiscal Year 2018. Of this amount, $4,090,476 was collected in criminal actions and $3,129,088 was collected in civil actions.
The District of Nevada also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $11,949,827 in cases pursued jointly by these offices.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending September 30, 2018. The $14,839,821,650 in collections in fiscal year 2018 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.
“We are fully committed to seeking justice for victims of crime, and we will use all available tools and resources to collect restitution and fines,” said U.S. Attorney Trutanich. “The more than $7.2 million recovered in fiscal year 2018 by our office is a testament to the efforts by dedicated Assistant U.S. Attorneys and staff, especially the office’s Financial Litigation Unit, who collects funds on behalf of victims and the federal treasury. I thank our staff for their persistence and hard work in the successful recovery of civil and criminal funds.”
Major case highlights include:
- Cardiovascular and Thoracic Surgeons of Nevada, Inc. paid $1.5 million to resolve allegations related to its potential liability under the False Claims Act. The Las Vegas medical practice, whose principal physician was Dr. Bashir Chowdhry, billed federal healthcare programs, including Medicare and the U.S. Department of Veterans Affairs, for surgical services not actually provided to its cardiac patients, and also billing for more expensive surgical and evaluation and management services than those actually provided to its patients.
- Concord Treatment Center, d/b/a Desert Hope Treatment Center, was audited by the DEA, which found that a Desert Hope employee had ordered and diverted 1,900 dosage units of Schedule II-IV controlled substances, and that Desert Hope had failed to maintain proper records for 12 Schedule II-IV controlled substances. Desert Hope paid a $250,000 civil penalty, surrendered the DEA registration for its internal pharmacy, and retained a subcontractor to manage its internal pharmacy in the future.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
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Nebraska Man Pleads Guilty to Producing Child PornographyRead the Press Release
A Nebraska man pleaded guilty today to producing child pornography in 2016, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Joseph P. Kelly of the District of Nebraska.
Steven R. Carlson, 38, of Omaha, Nebraska, pleaded guilty to one count of production of child pornography before U.S. District Court Judge Robert F. Rossiter, Jr. of the District of Nebraska. Sentencing is set for May 10, 2019.
According to admissions made in connection with his guilty plea, in May 2016, Carlson filmed himself engaging in forcible, sexual acts with a 13-year-old, nonverbal minor child. A search warrant executed on Carlson’s residence resulted in the discovery of hundreds of images of child pornography involving minors as young as infants and toddlers.
The FBI Cyber Crimes Task Force is investigating this case. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Nebraska Man Pleads Guilty to Producing Child PornographyRead the Press Release
A Nebraska man pleaded guilty today to producing child pornography in 2016, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Joseph P. Kelly of the District of Nebraska.
Steven R. Carlson, 38, of Omaha, Nebraska, pleaded guilty to one count of production of child pornography before U.S. District Court Judge Robert F. Rossiter Jr. of the District of Nebraska. Sentencing is set for May 10, 2019.
According to admissions made in connection with his guilty plea, in May 2016, Carlson filmed himself engaging in forcible, sexual acts with a 13-year-old, nonverbal minor child. A search warrant executed on Carlson’s residence resulted in the discovery of hundreds of images of child pornography involving minors as young as infants and toddlers.
The FBI Cyber Crimes Task Force is investigating this case. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Montana Barronette, Leader of Violent West Baltimore Gang Sentenced to Life in Prison for Federal Racketeering and Drug Conspiracy Charges, Including Murders and Witness IntimidationRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Montana Barronette, a/k/a Tana, and Tanner, age 23, of Baltimore, to life in prison, followed by five years of supervised release, for conspiring to participate in a violent racketeering enterprise known as Trained To Go (TTG). The racketeering conspiracy included eight murders—six committed by Barronette—as well as drug trafficking; and witness intimidation. Barronette and his co-defendants were also convicted of conspiracy to distribute and possess with intent to distribute heroin, marijuana, and cocaine. A federal jury convicted Barronette and seven co-defendants on October 31, 2018.
The sentencing was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Commissioner Michael Harrison of the Baltimore Police Department; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Anne Arundel County Police Chief Tim Altomare; and Baltimore City State’s Attorney Marilyn J. Mosby.
“Montana Barronette led one of the most violent gangs operating in Baltimore City and personally participated in at least six murders,” said U.S. Attorney Robert K. Hur. “He and his fellow gang members terrorized the Sandtown neighborhood in order to profit from the drug trade. As a result of today’s sentence, justice has been served for his victims and their families. Federal, state and local law enforcement will continue to work together to remove armed, violent criminals from our neighborhoods and bring them to justice in the federal system, which has no parole—ever.”
“From 2010 to 2017, Montana Barronette was known as the number one trigger puller in Baltimore and the leader of the vicious Trained To Go gang that terrorized the streets of West Baltimore, committing murders – including six by Barronette himself – shootings, armed robberies, drug dealing, and witness intimidation,” said Assistant Attorney General Benczkowski. “Today’s sentence brings Barronette’s murderous career to an end – and brings some measure of justice to his many victims. I commend our prosecutors, as well as our federal, state, and local law enforcement partners, for their tireless pursuit of justice against this violent gang.”
“This case represents the epitome of law enforcement agencies working together to target and dismantle violent street gangs that threaten the safety and stability of our neighborhoods,” said FBI Baltimore Special Agent in Charge Gordon B. Johnson. “The citizens of Baltimore City and Maryland have the FBI’s commitment that we will work with our local, state and federal partners to attack these dealers and remove violent criminals from their neighborhoods.”
According to the evidence presented at their 24-day trial, Barronette and his co-defendants are all members of TTG, a criminal organization that operated in the Sandtown neighborhood of West Baltimore, whose members engaged in drug distribution and acts of violence including murder, armed robbery, and witness intimidation. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.
The evidence at trial showed that Barronette and co-defendant Terrell Sivells served as the leadership for TTG. Members and associates of TTG sold heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. In addition to coordinating the distribution of heroin, Barronette also coordinated with other gangs, including the “Young Go Getters,” to conduct contract killings.
Specifically, the evidence proved that between May 20, 2010 and January 9, 2017, Barronette, his co-defendants, and other members of TTG committed acts of violence, including eight murders, shootings, armed robbery, and witness intimidation. The violent acts were intended to further the gang’s activities, protect the gang’s drug territory, and maintain and increase a member’s position within the organization. Murders were committed in retaliation for individuals robbing TTG members of drugs and drug proceeds, or while TTG members robbed others of their drugs and drug proceeds, as well as in murder-for-hire schemes. Further, the defendants engaged in witness intimidation through violence or threats of violence, to prevent individuals from cooperating with law enforcement.
The following defendants, all of Baltimore, were also convicted after trial and face a maximum sentence of life in prison on the racketeering and drug conspiracies:
Terrell Sivells, a/k/a Rell, age 27;
John Harrison, a/k/a Binkie, age 28;
Taurus Tillman, a/k/a Tash, age 29;
Linton Broughton, a/k/a Marty, age 25;
Dennis Pulley, a/k/a Denmo, age 31;
Brandon Wilson, a/k/a Ali, age 24; and
Timothy Floyd, a/k/a Tim Rod, age 28.Pulley and Wilson each also face a maximum sentence of 10 years in prison for being felons in possession of a firearm; and a mandatory minimum of five years, consecutive to any other sentence imposed, and up to life in prison for possession of a firearm in furtherance of a drug trafficking crime. Tillman and Sivells also face up to 20 years in prison for distribution and possession with intent to distribute heroin. The defendants remain detained.
Three other TTG members, all of Baltimore, previously pleaded guilty. Brandon Bazemore, a/k/a Man Man, age 25, pleaded guilty to the racketeering conspiracy, including three murders and an attempted murder, as well as to the drug conspiracy and was sentenced to 25 years in federal prison. Co-defendants Hisaun Chatman, age 31, and James Woodfolk, age 20, pleaded guilty to the drug conspiracy and were each sentenced to five years in prison, to be served concurrent to the state sentence each is currently serving.
Co-defendant Roger Taylor, of Baltimore, is still a fugitive. Anyone who may have information on the whereabouts of Roger Taylor is asked to contact the FBI-Baltimore Field office at (410) 265-8080.
The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County, and Anne Arundel County Police Departments. FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore. The vision of the program is to use federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski commended the FBI, the Baltimore Police Department, the ATF, the DEA, the Anne Arundel County Police Department, and the Office of the State’s Attorney for Baltimore City, for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Daniel C. Gardner, Christopher J. Romano, and Special Assistant U.S. Attorney John C. Hanley formerly of the Justice Department’s Organized Crime and Gang Section, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Michigan Patient Recruiter Pleads Guilty in $1.2 Million Kickback SchemeRead the Press Release
A Michigan woman pleaded guilty today for her role as a patient recruiter in a scheme involving approximately $1.2 million in fraudulent Medicare claims for home health care procured through the payment of kickbacks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy Slater of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Ghalia Savaya, 50, of Sterling Heights, Michigan, pleaded guilty to one count of conspiracy to receive kickbacks in connection with a federal health care program before U.S. District Judge David Lawson of the Eastern District of Michigan. Sentencing has been scheduled for May 30 before Judge Lawson.
Savaya was indicted in June 2018. As part of her guilty plea, Savaya admitted that, from approximately April 2015 to approximately Nov. 2017, she received illegal kickbacks in exchange for referring Medicare beneficiaries to Franklin Health Care LLC of Troy, Michigan, which billed Medicare for claims procured through these illegal kickbacks. Medicare paid over $1.25 million for claims related to beneficiaries referred by Savaya, which included claims for beneficiaries who were not eligible to receive home health care services.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Trial Attorneys Howard Locker and Steven Scott of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Mexican Man Sentenced to Nearly Three Years in Prison for Illegally Reentering the United StatesRead the Press Release
A Mexican man who illegally returned to the United States after being deported four times was sentenced yesterday to 33 months in federal prison.
Jorge Gonzalez-Juarez, age 33, a citizen of Mexico illegally present in the United States and residing in Eagle Grove, Iowa, received the prison term after a September 26, 2018 guilty plea to one count of illegal reentry into the United States after two prior felony convictions. Gonzalez-Juarez also received a prison term for violating the conditions of supervised release imposed on a conviction in the Western District of Texas in 2015 for illegal reentry.
At the guilty plea, Gonzalez-Juarez admitted he had previously been deported from the United States on August 27, 2008, October 14, 2009, December 2, 2014, and October 18, 2016, and illegally reentered the United States in 2016 without the permission of the United States government.
This was Gonzalez-Juarez’s third felony conviction for illegal reentry into the United States. Gonzalez-Juarez was also convicted of illegal entry into the United States in 2014 in the Northern District of Iowa and in 2015 in the Western District of Texas. Gonzalez-Juarez has also been convicted in Iowa of operating while intoxicated (OWI) in 2006, possession of methamphetamine under an alias name in 2007, criminal mischief in 2008, and fifth degree theft under an alias name in 2009. Gonzalez-Juarez most recently came to the attention of immigration officials following his arrest in July 2018 in Wright County, Iowa, for failure to appear on an OWI charge from 2014 where he was charged under an alias name. Gonzalez-Juarez was convicted of that state OWI offense in August 2018.
Gonzalez-Juarez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gonzalez-Juarez was sentenced to 21 months’ imprisonment on the illegal reentry conviction and 12 months’ imprisonment for violating the term of supervised release imposed on the conviction in the Western District of Texas. He must also serve a three-year term of supervised release after the prison term on the new conviction for illegal reentry. There is no parole in the federal system.
Gonzalez-Juarez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3037-CJW.
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Massachusetts Man Sentenced to 46 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Victor Soto, 38, of Dorchester, Massachusetts, was sentenced to serve 46 months in prison for fentanyl trafficking, announced United States Attorney Scott W. Murray.
According to court documents and statements made in court, on May 30, 2018, Manchester police officers acquired reliable information that the defendant would deliver 300 to 400 grams of fentanyl to Manchester later that day. The Manchester police officers shared this information with the New Hampshire State Police. That evening, the New Hampshire State Police located defendant’s black Acura SUV driving north on I-93. The defendant was driving alone. The police followed the defendant to route 293 and then onto South Willow St. in Manchester, where they stopped him. During a subsequent consent search of his vehicle, officer found approximately 394 grams of fentanyl in the trunk.
Soto previously pleaded guilty to possession of fentanyl with intent to distribute on November 8, 2018.
“Fentanyl distribution continues to damage the fabric of the Granite State,” said U.S. Attorney Murray. “As this case demonstrates, members of the law enforcement community are working closely each day to stop the flow of opioids into our state and to protect our citizens. I am grateful for the efforts of the investigators in this case. Their work prevented a substantial quantity of this deadly drug from being sold in New Hampshire.”
“We’re very gratified with the sentence that was handed down in this case today,” said Peter C. Fitzhugh, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “Together with the critical help of our local and federal partners in the Organized Crime Drug Enforcement Task Force (OCDETF) investigations like this one, we are making real progress in combatting the impacts of the devastating opioid and fentanyl epidemic that has ravaged the lives of so many communities throughout the region.”
This matter was investigated by the Manchester Police Department, New Hampshire State Police, and U.S. Immigration and Customs Enforcement's Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney John Davis.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Manhattan Man Pleads Guilty to 2018 Murder of 17-Year-OldRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that GARY TURNER pled guilty this afternoon in Manhattan federal court to the murder of Samuel Ozuna, 17, outside the George Washington Carver Houses in New York, New York on April 24, 2018. United States District Judge Jesse M. Furman presided over the defendant’s guilty plea today.
U.S. Attorney Geoffrey S. Berman said: “Last April, Gary Turner murdered 17-year-old Samuel Ozuna. Today, Turner admitted in open court to committing that terrible act of violence. We will continue our daily work with the NYPD to keep the streets safe and vigorously to investigate and prosecute those who bring murder and mayhem to our communities.”
As alleged in the Indictment and statements made in open court:
On April 24, 2018, GARY TURNER shot and killed Samuel Ozuna in the vicinity of 60 East 104th Street in Manhattan. TURNER committed this killing in order to maintain his position in a violent gang that was operating in the residential neighborhood surrounding the George Washington Carver Houses.
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TURNER, 24, of Manhattan, pled guilty to using a firearm to commit murder in aid of racketeering, which carries a maximum sentence of death or life in prison, and a mandatory minimum term of five years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the New York City Police Department.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Lauren Schorr and Jacob Warren are in charge of the prosecution.
Man Sentenced for Attempted Robbery and Possessing a FirearmRead the Press Release
RICHMOND, Va. – A previously convicted felon was sentenced today to nearly six years in prison for attempted robbery and being a felon in possession of a firearm.
According to court documents, Revardo Darnell White, 59, of Richmond, walked into the back office at Nations Motors Auto Lot in Richmond while wearing a mask and brandishing a loaded firearm and demanded money from his victims. When White pointed the firearm directly at one of the victims, the victim offered cash from his own wallet. White tried to charge the weapon and a bullet fell or was ejected from the weapon onto the floor. White left without taking any cash from the victim or the business.
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, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson, Jr. Assistant U.S. Attorney Janet Jin Ah Lee 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. 3:18-cr-61.
Man Sentenced After Being Caught with Child Pornography in Moore CountyRead the Press Release
GREENSBORO, N.C. – A man who pleaded guilty to receipt of child pornography was sentenced today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
KEVIN SCOTT SMITH, 40, of Lumberton, North Carolina, pleaded guilty on August 10, 2018, to one count of receipt of child pornography. He was sentenced by United States District Judge William L. Osteen, Jr. to 72 months of imprisonment followed by 10 years of supervised release.
SMITH first came to the attention of investigators with Moore County Sheriff’s Office as the result of a National Center for Missing and Exploited Children (NCMEC) CyberTipline report made by a cloud storage service provider. NCMEC’s CyberTipline is the nation’s centralized reporting system for online sexual exploitation of children. As a member of the North Carolina Internet Crimes Against Children (ICAC) Task Force, the Moore County Sheriff’s Office receives and investigates CyberTipline reports. In March 2018, detectives with the Moore County Sheriff’s Office executed a search warrant on a residence in Pinebluff, North Carolina where SMITH had been living and placed him under arrest.
“This case exemplifies how excellent federal, state, and local law enforcement coordination can protect our children from exploitation. Thank you to the Moore County Sheriff’s Office for participating in the Internet Crimes Against Children Task Force,” said U.S. Attorney Martin.
This case was prosecuted by Assistant United States Attorney Eric L. Iverson. It was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Long Island Man Sentenced to 16 Years’ Imprisonment for Distributing Heroin That Caused Death of One College Student and Non-Fatal Overdose of AnotherRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Richard Jacobellis was sentenced by United States District Judge Joanna Seybert to an agreed upon 16 years of imprisonment, to be followed by three years’ supervised release, for distributing heroin. When Jacobellis pleaded guilty in June 2018, he admitted that heroin he distributed caused the death of 20-year-old Nicholas Weber in 2016 and serious bodily injury to another in 2015.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the sentence.
“With today’s sentence, Jacobellis will serve a significant jail term for callously pushing deadly heroin that resulted in the death of one young man and nearly killed another, but for the heroic efforts of Suffolk County Police Officers,” stated United States Attorney Donoghue. “We hope the victims’ families can find some solace in this result and in the knowledge that this Office will continue working tirelessly to hold accountable those who contribute to the opioid epidemic on Long Island and elsewhere in the district.” Mr. Donoghue thanked the Suffolk County Police Department for its assistance on the case.
“The defendant’s drugs killed a young man who had a whole life in front of him,” stated DEA Special Agent-in-Charge Donovan. “We cannot console the Weber family enough, but we can continue to investigate and arrest drug traffickers like Jacobellis.”
Jacobellis, a narcotics dealer since 2012, sold heroin to an individual on or about March 8, 2015. The individual, then 18-years-old, used the heroin and overdosed. Suffolk County Police Officers administered Narcan to the individual, who later recovered from a coma. On May 16, 2016, Jacobellis sold $100 worth of heroin to Weber, then 20-years-old, causing his death. Weber was a graduate of Kings Park High School where he was a champion wrestler in his weight class and, at the time of his death, was a student at Suffolk County Community College.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Christopher C. Caffarone is in charge of the prosecution.
The Defendant:
RICHARD JACOBELLIS
Age: 25
Ridge, New YorkE.D.N.Y. Docket No. 17-CR-52 (JS)
Lockport Man Sentenced for Attempting to Retrieve Cocaine Mailed from Puerto Rico in an Oatmeal ContainerRead 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 Juan M. Serrano Acevedo, also known as Juan Acevedo-Serrano, 36, of Lockport, NY, who was convicted of possession with intent to distribute at least 500 grams of cocaine, was sentenced to serve 30 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that in late October of 2015, the U.S. Postal Inspection Service intercepted a package shipped from Puerto Rico to an address in Lockport. During the execution of a search warrant on the package, law enforcement officers discovered two pounds of cocaine hidden inside an oatmeal canister. At that time, the USPIS removed the cocaine from the package.
On December 30, 2015, Serrano Acevedo went to the Lockport Post Office to sign for and accept the package addressed to him. After exiting the post office, the defendant was arrested. Following the arrest, Serrano Acevedo admitted that he ordered the cocaine, that he had previously received a package that contained cocaine, and that he sold cocaine.
Today’s sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Division, and the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin.
Lenore Man Indicted for Felon in Possession of a FirearmRead the Press Release
COEUR D’ALENE – Manuel Villalobos, 42, of Lenore, Idaho, was indicted Wednesday by a federal grand jury sitting in Boise on one count of felon in possession of a firearm, U.S. Attorney Bart M. Davis announced. Villalobos made his initial appearance yesterday morning and pleaded not guilty. Trial is set for April 8, 2019, before Chief U.S. District Judge David C. Nye at the federal courthouse in Coeur d’Alene.
The indictment alleges that on or about February 7, 2019, Villalobos possessed a Zastava, Model O-PAP M70, 7.62x39mm caliber rifle after previously being convicted of a felony.
The charge of felon in possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
This case is being investigated by the Federal Bureau of Investigation and the Nez Perce Police Department.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Leader of Violent West Baltimore Gang Sentenced to Life in Prison for Federal Racketeering and Drug Conspiracy Charges, Including Murders and Witness IntimidationRead the Press Release
A Baltimore, Maryland man was sentenced today to life in prison for conspiring to participate in a violent racketeering enterprise known as Trained To Go (TTG). The racketeering conspiracy included eight murders, drug trafficking, and witness intimidation.
The sentencing was announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Robert K. Hur for the District of Maryland; Special Agent in Charge Gordon B. Johnson of the FBI Baltimore Field Office; Acting Commissioner Michael Harrison of the Baltimore Police Department; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Don A. Hibbert of the U.S. Drug Enforcement Administration (DEA) Baltimore District Office; Anne Arundel County Police Chief Tim Altomare and Baltimore City State’s Attorney Marilyn J. Mosby.
Montana Barronette, aka Tana, and Tanner, 23, was sentenced by U.S. District Judge Catherine C. Blake for the District of Maryland to serve life in prison, followed by five years of supervised release. The racketeering conspiracy included eight murders – six committed by Barronette – as well as drug trafficking and witness intimidation. Barronette and his co-defendants were also convicted of conspiracy to distribute and possess with intent to distribute heroin, marijuana, and cocaine. A federal jury convicted Barronette and seven co-defendants on Oct. 31, 2018.
“From 2010 to 2017, Montana Barronette was known as the number one trigger puller in Baltimore and the leader of the vicious Trained To Go gang that terrorized the streets of West Baltimore, committing murders – including six by Barronette himself – shootings, armed robberies, drug dealing, and witness intimidation,” said Assistant Attorney General Benczkowski. “Today’s sentence brings Barronette’s murderous career to an end – and brings some measure of justice to his many victims. I commend our prosecutors, as well as our federal, state, and local law enforcement partners, for their tireless pursuit of justice against this violent gang.”
“Montana Barronette was the leader of one of the most violent gangs operating in Baltimore City and personally participated in at least six murders,” said U.S. Attorney Hur. “As a result of today’s sentence justice has been served for his victims and their families. Federal, state and local law enforcement will continue to work together to remove armed, violent criminals from our neighborhoods and bring them to justice in the federal system, which has no parole—ever.”
“This case represents the epitome of law enforcement agencies working together to target and dismantle violent street gangs that threaten the safety and stability of our neighborhoods,” said FBI Baltimore Special Agent in Charge Johnson. “The citizens of Baltimore City and Maryland have the FBI’s commitment that we will work with our local, state and federal partners to attack these dealers and remove violent criminals from their neighborhoods.”
According to the evidence presented at their 24-day trial, Barronette and his co-defendants are all members of TTG, a criminal organization which operated in the Sandtown neighborhood of West Baltimore, whose members engaged in drug distribution and acts of violence including murder, armed robbery, and witness intimidation. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.
The evidence at trial showed that Barronette and co-defendant Terrell Sivells served as the leadership for TTG. Members and associates of TTG sold heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. In addition to coordinating the distribution of heroin, Barronette also coordinated with a criminal group known as the “Young Go Getters,” and others to engage in murder-for-hire schemes on behalf of TTG.
Specifically, the evidence proved that between May 20, 2010 and Jan. 9, 2017, Barronette, his co-defendants, and other members of TTG committed acts of violence, including nine murders, shootings, armed robbery, and witness intimidation. The violent acts were intended to further the gang’s activities, protect the gang’s drug territory, and maintain and increase a member’s position within the organization. Murders were committed in retaliation for individuals robbing TTG members of drugs and drug proceeds, or while TTG members robbed others of their drugs and drug proceeds, as well as in murder-for-hire schemes. Further, the defendants engaged in witness intimidation through violence or threats of violence, to prevent individuals from cooperating with law enforcement.
The following defendants, all of Baltimore, were also convicted after trial and face a maximum sentence of life in prison on the racketeering and drug conspiracies:
Terrell Sivells, aka Rell, 27;
John Harrison, aka Binkie, 28;
Taurus Tillman, aka Tash, 29;
Linton Broughton, aka Marty, 25;
Dennis Pulley, aka Denmo, 31;
Brandon Wilson, aka Ali, 24; and
Timothy Floyd, aka Tim Rod, age 28.
Pulley and Wilson each also face a maximum sentence of 10 years in prison for being felons in possession of a firearm; and a mandatory minimum of five years in prison, consecutive to any other sentence imposed, and up to life in prison for possession of a firearm in furtherance of a drug trafficking crime. Tillman and Sivells also face up to 20 years in prison for distribution and possession with intent to distribute heroin. The defendants remain detained.
Three other TTG members, all of Baltimore, previously pleaded guilty. Brandon Bazemore, aka Man Man, 25, pleaded guilty to the racketeering conspiracy, including three murders and an attempted murder, as well as to the drug conspiracy and was sentenced to 25 years in federal prison. Co-defendants Hisaun Chatman, 31, and James Woodfolk, 20, pleaded guilty to the drug conspiracy and were each sentenced to five years in prison, to be served concurrent to the state sentence each is currently serving.
Co-defendant Roger Taylor, of Baltimore, is still a fugitive. Anyone who may have information on the whereabouts of Roger Taylor is asked to contact the FBI Baltimore Field office at (410) 265-8080.
The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County, and Anne Arundel County Police Departments. FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore. The vision of the program is to use federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The Organized Crime Drug Enforcement Task Force investigation was conducted by the FBI, Baltimore Police Department, ATF, DEA, Anne Arundel County Police Department and the Office of the State’s Attorney for Baltimore City. The case was prosecuted by Special Assistant U.S. Attorney John C. Hanley formerly of the Justice Department’s Organized Crime and Gang Section and Assistant U.S. Attorneys Daniel C. Gardner and Christopher J. Romano of the District of Maryland.
Laurinburg Man Sentenced to 180 Months in Prison for Firearms and Drug ChargesRead the Press Release
GREENSBORO, N.C. – A Laurinburg man who sold firearms and cocaine was sentenced to federal prison today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
VONERIC LAQUANE PRIMUS pleaded guilty on September 5, 2018, to six counts of possession of a firearm by a previously convicted felon, four counts of distribution of cocaine base (“crack”), and one count of possessing a firearm during and in relation to a drug trafficking crime. PRIMUS was sentenced by United States District Judge N. Carlton Tilley Jr. to 180 months of imprisonment, followed by 5 years of supervised release.
On six occasions beginning on May 2, 2018, and ending on June 6, 2018, PRIMUS sold firearms and crack cocaine to a confidential informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives. PRIMUS sold a total of seven handguns and approximately 252 grams of crack cocaine during that period, with all of those sales occurring in Scotland County, North Carolina. PRIMUS had previously been convicted of state felonies for discharging a weapon into occupied property, possession of a firearm by a felon, and possession of a Schedule II controlled substance.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Laurinburg Police Department, and prosecuted by Assistant United States Attorney Anand P. Ramaswamy for the Middle District of North Carolina.
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Jury Convicts Two KCK Men of Conspiracy, Kidnapping, Carjacking, Robbery, Drug Trafficking, and Illegal Firearm PossessionRead the Press Release
KANSAS CITY, Mo. – Two Kansas City, Kan., men have been convicted at trial by a federal jury of 17 counts contained in a Dec. 13, 2016, federal indictment.
Jamerl M. Wortham, 33, and Anthony B. Williams, 36, were each found guilty on Thursday, Feb. 14, 2019, of one count of conspiracy to commit kidnapping, three counts of kidnapping, one count of carjacking, one count of conspiracy to commit Hobbs Act robbery, one count of attempted Hobbs Act robbery, one count of distribution of phencyclidine (PCP), six counts of possession of a short-barreled shotgun in furtherance of a crime of violence or drug trafficking crime, one count of being felons in possession of a firearm, one count of possession of an unregistered short-barreled shotgun, and one count of possession of a firearm with an obliterated serial number.
During the early morning hours of April 9, 2016, the defendants, along with another man, stole a Jaguar vehicle in Kansas City, Kansas, then set off to Kansas City, Missouri, with a plan to rob people at ATM machines. While driving around the Westport entertainment district, at approximately 1:30 a.m., the men came across M.M., a woman who was waiting to be picked up by an Uber car. One of the defendants stepped out of the stolen Jaguar, put his arm around M.M., and corralled her into the vehicle.
From there, the defendants proceeded north toward a set of ATMs located in the River Market neighborhood of Kansas City, Missouri. There, they waited until a red Toyota Camry pulled up to use the ATM at approximately 2:00 a.m. The defendants drove up behind the Camry where two women, T.J. and Y.C., were attempting to deposit money into the ATM. One of the defendants and another man approached the Camry, pointed a loaded sawed-off shotgun at the driver and passenger, demanded money, then forced them in the backseat of the Camry. The two men then got in the driver and passenger seats of the vehicle and sped away towards Kansas City, Kansas, with the stolen Jaguar containing M.M. following close behind.
Once in Kansas City, Kansas, the defendants forced all of the victims into the Camry. From there, the defendants took the victims to another ATM in Kansas City, Kansas, and told them to withdraw as much money as they could from their bank accounts. After leaving the ATM, the defendants forced M.M. and Y.C. to smoke phencyclidine (PCP), while they drove for hours around the Kansas City metro area. During the entirety of this time, the victims were consistently threatened with death and bodily harm while the defendants pointed the sawed-off shotgun in the victims’ direction. Williams also indicated he was armed with a handgun during this time.
At around 5:00 a.m. the defendants split the victims up into two separate cars – with Wortham in the stolen Jaguar with T.J., and Williams in the stolen Camry with M.M. and Y.C. While they caravanned through Kansas City, Kansas, police officers recognized the stolen Jaguar and engaged it in pursuit. The Jaguar fled at a high rate of speed, lost control, then crashed with T.J. in the passenger seat of the vehicle. After the crash, Wortham fled from the vehicle on foot but was apprehended shortly after and placed under arrest. T.J. was unhurt in the crash. Discovered inside of the vehicle was a loaded Coast to Coast, Master Mag, Model CC660, 20-gauge shotgun that had approximately 12-inches of the barrel sawed off, along with the shotgun stock shortened.
In the stolen Camry, Williams and another man drove M.M. and Y.C. throughout the Kansas City metro area in search of drugs and a house to use. At approximately 8:00 a.m., the other man was dropped off at an unknown location. With only Williams in the vehicle, M.M. found an opportunity to jump out of the Camry at a stop sign, run into a convenience store, and call the police. Soon after, Y.C. also attempted to escape the vehicle, but had to fight Williams to get out of his grasp. Once out of his grasp, Y.C. ran down a residential street, with Williams chasing behind. She used the panic button on her key fob to set off her car alarm, which stopped Williams from pursuing. Y.C. ran for at least three blocks, found a good Samaritan, then called the police.
Investigation of these crimes, led by the Federal Bureau of Investigation, and the Kansas City, Missouri, Police Department involved numerous witness interviews, review of surveillance video, and analysis of forensic evidence.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for less than two hours on Thursday, February 14, 2019, before returning the guilty verdicts to U.S. District Judge Brian Wimes, ending a trial that began Monday afternoon, February 11, 2019.
Under federal statutes, Wortham is subject to a mandatory minimum sentence of 60 years in federal prison without parole, up to a sentence of life in federal prison without parole. Williams is subject to a mandatory minimum sentence of life in federal prison without parole based on prior convictions.
The minimum and maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of each defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Jeffrey Q. McCarther and Alison D. Dunning. It was investigated by the Federal Bureau of Investigation, the Kansas City, Missouri, Police Department, the Kansas City, Kansas, Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Judge sentences Browning man to prison for sex abuse of minorRead the Press Release
GREAT FALLS—A Browning man who admitted providing a minor methamphetamine in exchange for sexual favors was sentenced on Feb. 14 to 51 months in prison and six years of supervised release, U.S. Attorney Kurt Alme said.
Richard “Bitsy” Smith, 37, pleaded guilty in November to sexual abuse of a minor and distribution of a controlled substance to a person under 21.
U.S. District Judge Brian M. Morris presided.
Prosecutors said an FBI investigation in 2017 into reports of individuals on the Blackfeet Indian Reservation providing meth to minors in exchange for sexual activity led to Smith and the victim. Search warrants served on Facebook accounts showed Smith and the victim were engaged in a sexual and drug relationship. The victim told investigators that Smith had provided her meth and that they had sex on multiple occasions. Smith admitted to investigators in August 2018 that he had been dealing meth for about two years to support his addiction.
Assistant U.S. Attorney Jeffrey Starnes prosecuted the case, which was investigated by the FBI.
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Jackson Man Sentenced to Five Years under Project EJECT for Illegally Possessing a Firearm in Relation to a Drug Trafficking CrimeRead the Press Release
Jackson, Miss. – Derrick Deondrey Minor, 42, of Jackson, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to five years in federal prison, followed by five years of supervised release, for possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Minor was also ordered to pay a $1,500 fine.
On December 8, 2017, officers with the Jackson Police Department initiated a traffic stop which led to Minor’s arrest for possession of a loaded .40 caliber Glock, scales, crack cocaine, methamphetamine, and powder cocaine. Minor was indicted by a federal grand jury on August 7, 2018, and pled guilty before Judge Jordan on November 7, 2018.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jackson Police Department. It was prosecuted by Assistant United States Attorney Kimberly T. Purdie.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges and indictments handed down by the Grand Jury were unsealed. Indictments are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 12 was:
NICHOLAS TYLER SMITH, 24, of Livingston, on charges of receipt of a firearm while under information and false statement in firearms acquisition. Smith was detained. If convicted of the most serious crime, Smith faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-06.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 13 was:
DUSTIN CHARLES GOUDREAUX, 29, of Lame Deer, on charges of assault resulting in serious bodily injury on the Northern Cheyenne Indian Reservation. Goudreaux was detained. If convicted of the most serious crime, Goudreaux faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the FBI. Pacer case reference. 19-09.
Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch on Feb. 12 was:
JUSTIN MICHAEL ALLEN, 33, of Los Angeles, CA, on a criminal complaint charging him with felon in possession of a firearm. Allen waived a preliminary hearing and is detained. If convicted of the most serious crime, Allen faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missoula High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-17.
Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch on Feb. 13 was:
DEREK ALAN DEMBOWSKI, 41, of Thompson Falls, on a criminal complaint charging him with felon in possession of a firearm, possession of a firearm in furtherance of a drug trafficking crime and distribution of methamphetamine. He is detained. If convicted of the most serious crime, Dembowski faces a minimum mandatory five years to life, a $250,000 fine and five years of supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-15.
Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch on Feb. 14 were:
JENNIFER JILL DANNA, 46, and PRZEMEK ROGALSKI, 40, both of California, on a criminal complaint charging them with conspiracy to distribute methamphetamine. Both are detained. Judge Lynch found there was probable cause to proceed and the case will be presented to a grand jury. If convicted of the most serious crime, Danna and Rogalski face a minimum mandatory 10 years to life in prison, a $10 million fine and a minimum five years of supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missoula High Intensity Drug Trafficking Area Task Force and the Drug Enforcement Administration. Pacer case reference. 19-18.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Feb. 14 was:
DOUGLAS JOSEPH DAYRIDER, 38, of Cut Bank, on charges of failure to register as a sex offender on the Blackfeet Reservation. He was detained. If convicted of the most serious crime, Dayrider faces a maximum 10 years in prison, a $250,000 fine and five years of supervised release. The case was investigated by the U.S. Marshals Service. Pacer case reference. 19-05.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Husband Sentenced on Federal Charges—Wife to be Sentenced Later in MarchRead the Press Release
Abingdon, VIRGINIA – A St. Paul, Virginia man, who illegally possessed more than a dozen firearms and thousands of rounds of ammunition, was sentenced yesterday to 71 months in federal prison, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark R. Herring announced.
Patrick Steven Hyde, 40, previously pleaded guilty to one count of being a convicted felon illegally in possession of a firearm. Crystal Dione Hyde, 35, Patrick’s wife, who previously pleaded guilty to one count of lying to a federal agent in order to keep her husband out of trouble, will be sentenced on a date to be scheduled in March 2019.
“Although the Second Amendment strongly protects an individual’s right to bear arms, it does not allow convicted felons, and other prohibited persons, to possess firearms,” U.S. Attorney Cullen stated today. “We will aggressively investigate and prosecute convicted felons who possess firearms and those who enable them to do so.”
According to evidence presented at previous hearings by Virginia Assistant Attorney General and Special Assistant United States Attorney Suzanne Kerney-Quillen, on December 17, 2015, agents with the Drug Enforcement Administration [DEA], the Bureau of Alcohol, Tobacco, Firearms and Explosives [ATF], Virginia State Police, Russell County Sheriff’s Office, and Wise County Sheriff’s Office conducted a search of the mobile home and outbuilding in St. Paul, Virginia where Steven and Crystal Hyde resided. During that search, investigators recovered 14 firearms, thousands of rounds of ammunition, two bulletproof vests, and marijuana. The firearms recovered included five semi-automatic rifles and two semi-automatic pistols, all of which were capable of receiving large capacity magazines. The investigation also revealed that Steven Hyde utilized internet websites to engage in the purchase and sale of firearms, both in and out of state. Steven Hyde is a previously convicted felon who is barred from possessing a firearm. Hyde also faced charges in Wise County Circuit Court for possessing with the intent to distribute marijuana.
When interviewed by agents with the ATF, Crystal Hyde told investigators she purchased and possessed all of the weapons and ammunition recovered during the search. However, subsequent investigation revealed that the firearms and ammunition did in fact belong to Steven Hyde and that Crystal Hyde had helped her husband, whom she knew to be prohibited from possessing firearms, acquire the weapons. The investigation further revealed that Crystal Hyde lied to investigators about the firearms in an attempt to keep him out of further legal trouble.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, Explosives, the Drug Enforcement Administration, Virginia State Police, Russell County Sheriff’s Office, Wise County Sheriff’s Office, and the St. Paul Police Department. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States in federal court.
Georgia Man Indicted on Federal Charge of Using the Internet in Attempting to Entice A Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announced today the return of an indictment charging Douglas Scott Phillips (51, Richmond Hill, Georgia) with using the internet to attempt to entice a child to engage in sexual activity. Phillips faces a minimum mandatory penalty of 10 years, and up to life, in federal prison and a potential life term of supervised release. Phillips was arrested at his home in Georgia by the United States Marshals Service on February 14, 2019. He will be transported to Jacksonville for further proceedings.
This case was investigated by the St. Johns County Sheriff’s Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Liberty County (GA) Sheriff’s Office, and the Bryan County (GA) Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former St. Martinville, Louisiana, Deputy Chief Sentenced for Excessive Force, Obstruction, and ConspiracyRead the Press Release
The Honorable Judge Elizabeth Foote, of the United States District Court for the Western District of Louisiana, sentenced defendant Codi Dodge, 35, the former Deputy Chief of Investigations for the St. Martinville Police Department (SMPD), to serve nine years in prison on four felony counts related to his abuse of an arrestee. Dodge was convicted at trial in November on charges of violating the civil rights of an arrestee by using excessive force against him, and of obstructing justice and conspiring with others to do so.
“Illegal conduct by officers who abuse their power and violate the civil rights of the citizens they promise to serve harms the public trust and will not be tolerated,” said Assistant Attorney General Eric Dreiband. “The Department will continue to vigorously enforce our nation’s laws and hold officers who break the law accountable.”
“Law enforcement officers are sworn to uphold and defend the laws of our nation,” said U.S. Attorney David C. Joseph. “When they themselves break those laws, they violate not just the rights of their victims, but also compromise the public's trust in law enforcement. This case is a prime example of my commitment to hold accountable officers who threaten the mission of law enforcement by breaking the law.”
After five days of trial, a jury convicted Dodge of using excessive force on an arrestee, resulting in bodily injury to the arrestee. Evidence presented at trial established that, on Aug. 13, 2016, Dodge forced entry into the home of an individual he suspected had stolen from him, and then threatened the individual before striking him in the face with a firearm. Dodge then arrested the individual, took him to the St. Martinville Police Department, and continued to threaten him. Later, after learning that the incident had been reported to the FBI, Dodge conspired with other members of the SMPD to falsify reports regarding the incident, and to mislead the FBI in its investigation of the matter. Based on this evidence, the jury also convicted Dodge of obstruction of justice and conspiracy.
This case was investigated by the FBI’s Lafayette, Louisiana, Resident Agency. The case was prosecuted by Deputy Chief Bobbi Bernstein and Trial Attorney Tim Visser of the Civil Rights Division and Assistant U.S. Attorney John Luke Walker of the Western District of Louisiana. Trial Attorney Risa Berkower of the Civil Rights Division participated in the investigation of the case.
Former St. Martinville deputy chief sentenced to 9 years for excessive force, obstruction and conspiracyRead the Press Release
LAFAYETTE, La. – The Honorable Judge Elizabeth Foote, of the United States District Court for the Western District of Louisiana, sentenced defendant Codi Dodge, 35, the former Deputy Chief of Investigations for the St. Martinville Police Department (SMPD), Thursday to serve nine years in prison on four felony counts related to his abuse of an arrestee. Dodge was convicted at trial in November on charges of violating the civil rights of an arrestee by using excessive force against him, and of obstructing justice and conspiring with others to do so.
“Illegal conduct by officers who abuse their power and violate the civil rights of the citizens they promise to serve harms the public trust and will not be tolerated,” said Assistant Attorney General Eric Dreiband. “The Department will continue to vigorously enforce our nation’s laws and hold officers who break the law accountable.”
“Law enforcement officers are sworn to uphold and defend the laws of our nation,” said U.S. Attorney David C. Joseph. “When they themselves break those laws, they violate not just the rights of their victims, but also compromise the public's trust in law enforcement. This case is a prime example of my commitment to hold accountable officers who threaten the mission of law enforcement by breaking the law.”
After five days of trial, a jury convicted Dodge of using excessive force on an arrestee, resulting in bodily injury to the arrestee. Evidence presented at trial established that, on Aug. 13, 2016, Dodge forced entry into the home of an individual he suspected had stolen from him, and then threatened the individual before striking him in the face with a firearm. Dodge then arrested the individual, took him to the SMPD, and continued to threaten him. Later, after learning that the incident had been reported to the FBI, Dodge conspired with other members of the SMPD to falsify reports regarding the incident, and to mislead the FBI in its investigation of the matter. Based on this evidence, the jury also convicted Dodge of obstruction of justice and conspiracy.
This case was investigated by the FBI’s Lafayette, Louisiana, Resident Agency. The case was prosecuted by Deputy Chief Bobbi Bernstein and Trial Attorney Tim Visser of the Civil Rights Division and Assistant U.S. Attorney John Luke Walker of the Western District of Louisiana. Trial Attorney Risa Berkower of the Civil Rights Division participated in the investigation of the case.
Former Rochester CEO Indicted on Multiple Charges for Defrauding His Own CompanyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 15-count indictment charging Michael Margiotta, 48, of Rochester, NY, with wire fraud, money laundering, and filing a false tax return. The charges carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the indictment, between May 2011 and January 2014, the defendant was Chief Executive Officer of eHealth Global Technologies, Inc. As eHealth CEO, Margiotta entered into a contract with Healthcare Network Alliance, LLC (HCNA) for employment recruiting services. According to the contract, HCNA received a fee totaling 20% of an eHealth employee’s base salary for the first year for each employee referred by HCNA and hired by eHealth. The defendant caused HCNA to issue fraudulent invoices to eHealth and then directed subordinate employees at eHealth to pay the invoices.
In addition, Margiotta caused an individual, identified as Consultant A, to submit fraudulent invoices to eHealth for services actually provided to an unrelated entity known as Action Against Child Maltreatment, Inc. (AACM) that Margiotta controlled. Once again, the defendant directed subordinate employees at eHealth to pay the invoices.
In total, the defendant caused eHealth to pay approximately $455,000 in false and fraudulent invoices. A substantial portion of those funds were transferred into Margiotta’s personal brokerage accounts.
Furthermore, for the tax years 2011-2014, on his personal income tax returns, the defendant falsely overstated his business expenses and/or understated his business income, among other misstatements, and as a result, he evaded approximately $341,000 in taxes owed to the United States. Margiotta also filed false tax returns for his charity, AACM, for tax years 2013-2014, in order to conceal the improper transfer of $80,000 of AACM’s assets to himself.
The defendant was arraigned before U.S. Magistrate Judge Marian W. Payson and was released on conditions.
The indictment is the culmination of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Acting Special Agent-in-Charge, New York Field Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Former President and Former Chief Legal Officer of Publicly Traded Fortune 200 Technology Services Company Indicted in Connection with Alleged Multi-Million Dollar Foreign Bribery SchemeRead the Press Release
A federal grand jury returned an indictment yesterday against the former president and the former chief legal officer of Cognizant Technology Solutions Corporation, a publicly traded Fortune 200 technology services company based in Teaneck, New Jersey, in connection with an alleged foreign bribery scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey and Special Agent in Charge Gregory W. Ehrie of the FBI Newark Field Office made the announcement.
Gordon Coburn, 55, of Beaver Creek, Colorado, and Steven Schwartz, 51, of Greenwich, Connecticut, were charged in a 12-count indictment with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), three counts of violating the FCPA, seven counts of falsifying books and records, and one count of circumventing and failing to implement internal accounting controls. The charges stem from an alleged scheme to bribe one or more government officials in India to ensure the issuance of a construction permit necessary to complete the development of an office campus that would support thousands of employees and become one of Cognizant’s largest facilities in India.
The case is assigned to U.S. District Judge Kevin McNulty of the District of New Jersey. The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
“The allegations in the indictment filed yesterday describe a sophisticated international bribery scheme authorized and concealed by C-suite executives of a publicly-traded multinational company,” said Assistant Attorney General Benczkowski. “The indictment of Gordon Coburn and Steven Schwartz demonstrates the Department’s commitment to relentlessly pursuing corporate fraud and corruption wherever it is found.”
According to the indictment, in or about April 2014, Coburn and Schwartz allegedly authorized an unlawful payment of approximately $2 million to one or more foreign government officials in India to secure and obtain a necessary permit to open a new office campus. To conceal Cognizant’s involvement in the scheme, Coburn, Schwartz and others allegedly agreed that a third-party construction company would obtain the permit by making the illegal bribe payment and that Cognizant would reimburse the construction company through phony construction invoices at the end of the project. The indictment further alleges that in or about late June 2014, after the co-conspirators had agreed that the construction company would make the bribe payment on behalf of Cognizant, the construction company secured the necessary government order for Cognizant to obtain the permit, allowing Cognizant to complete the development of the office campus and avoid millions of dollars in costs. Months later, the co-conspirators are alleged to have knowingly caused Cognizant to funnel over $2 million to the construction company disguised as payment for cost overruns on the office campus when they knew that the actual purpose of the payment was to reimburse the construction company for the bribe payment. According to the indictment, as Coburn, Schwartz and others had previously agreed, they hid the bribe reimbursement payment within a series of line items in a construction change order request to be paid to the construction company, thereby concealing the true nature and purpose of the reimbursement, falsifying Cognizant’s books and records, and circumventing and failing to implement its internal controls.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Department of Justice and the U.S. Attorney’s Office for the District of New Jersey also announced today that they have declined prosecution of Cognizant after considering the factors set forth in the Department of Justice’s Principles of Prosecution of Business Organizations and the Corporate Enforcement Policy, including Cognizant’s prompt voluntary self-disclosure, cooperation and remediation, as well as Cognizant’s disgorgement to the Department and the U.S. Securities and Exchange Commission (SEC) of the cost savings that resulted from the bribery scheme.
In the related case with the SEC, Cognizant entered into a cease and desist order and agreed to pay the SEC a civil penalty, disgorgement and prejudgment interest totaling approximately $25 million. The Company will pay $16,394,351 in disgorgement of profits within the time limits prescribed by 28 U.S.C. § 2462 to the SEC, and the remaining $2,976,210 to the U.S. Treasury.
The Department appreciates the significant cooperation provided by the SEC in this case.
The case is being investigated by the FBI’s Newark Field Office. Assistant Chief David A. Last of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Courtney A. Howard and Nicholas P. Grippo of the District of New Jersey are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former President and Former Chief Legal Officer of Publicly Traded Fortune 200 Technology Services Company Indicted on 12 Counts Related to Multimillion-Dollar Foreign Bribery SchemeRead the Press Release
NEWARK, N.J. – A federal grand jury has indicted the former president and the former chief legal officer of Cognizant Technology Solutions Corp., a publicly traded Fortune 200 technology services company based in Teaneck, New Jersey, in connection with a foreign bribery scheme.
U.S. Attorney Craig Carpenito of the District of New Jersey, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Gregory W. Ehrie of the FBI Newark Field Office made the announcement today.“Corruption, bribery, and kickbacks have no rightful place in American business, and corporate officials who bribe foreign officials to gain a competitive advantage are breaking U.S. law,” U.S. Attorney Carpenito said. “As this indictment shows, we will investigate and prosecute those who would misuse their privileged positions as senior corporate executives to offer and pay bribes, and then conceal their misconduct from investors, so that we can help to restore public trust in a market that is fair and open for all.”
“The allegations in the indictment filed yesterday describe a sophisticated international bribery scheme authorized and concealed by C-suite executives of a publicly-traded multinational company,” Assistant Attorney General Benczkowski said. “The indictment of Gordon Coburn and Steven Schwartz demonstrates the Department’s commitment to relentlessly pursuing corporate fraud and corruption wherever it is found.”
“The FBI’s stance on corruption and fraud is that of zero tolerance and therefore one of our highest priorities,” Special Agent in Charge Gregory W. Ehrie said. “In this time of international commerce, whether at home or overseas, the FBI is committed to fighting both corruption and fraud. Companies should have the opportunity to prosper through honest business practices, not the practice of bribery and backroom deals.”
Gordon Coburn, 55, of Beaver Creek, Colorado, and Steven Schwartz, 51, of Greenwich, Connecticut, were charged in a 12-count indictment with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), three counts of violating the FCPA, seven counts of falsifying books and records, and one count of circumventing and failing to implement internal accounting controls. The charges stem from an alleged scheme to bribe one or more government officials in India to ensure the issuance of a construction permit necessary to complete the development of an office campus that would support thousands of employees and become one of Cognizant’s largest facilities in India.
The case is assigned to U.S. District Judge Kevin McNulty of the District of New Jersey. The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the indictment:
In April 2014, Coburn and Schwartz authorized an unlawful payment of $2 million to one or more government officials in India to secure and obtain the necessary permits to open a new office campus. To conceal Cognizant’s involvement in the scheme, Coburn, Schwartz and others allegedly agreed that a third-party construction company would obtain the permit by making the illegal bribe payment and that Cognizant would reimburse the construction company through phony construction invoices at the end of the project. The indictment alleges that in late June 2014, after the conspirators had agreed that the construction company would make the bribe payment on behalf of Cognizant, the construction company secured the necessary government order for Cognizant to obtain the permit, allowing Cognizant to complete the development of the office campus and avoid millions of dollars in costs. Months later, the conspirators are alleged to have knowingly caused Cognizant to funnel over $2 million to the construction company disguised as payment for cost overruns on the office campus when they knew that the actual purpose of the payment was to reimburse the construction company for the bribe payment.
According to the indictment, as Coburn, Schwartz and others had previously agreed, they hid the bribe reimbursement payment within a series of line items in a construction change order request to be paid to the construction company, thereby concealing the true nature and purpose of the reimbursement, falsifying Cognizant’s books and records, and circumventing and failing to implement its internal controls.
The Department of Justice and the U.S. Attorney’s Office for the District of New Jersey also announced today that they have declined prosecution of Cognizant after considering the factors set forth in the Department of Justice’s Principles of Prosecution of Business Organizations and the Corporate Enforcement Policy, including Cognizant’s prompt voluntary self-disclosure, cooperation and remediation, as well as Cognizant’s disgorgement to the Department and the U.S. Securities and Exchange Commission (SEC) of the cost savings that resulted from the bribery scheme.
In the related case with the SEC, Cognizant entered into a cease-and-desist order and agreed to pay the SEC a civil penalty, disgorgement and prejudgment interest totaling $25 million.
The Department appreciates the significant cooperation provided by the SEC in this case.
The case is being investigated by the FBI’s Newark Field Office.
The government is represented by Assistant U.S. Attorneys Courtney A. Howard and Nicholas P. Grippo, Attorney in Charge of the Trenton Office of the District of New Jersey, and Assistant Chief David A. Last of the DOJ Criminal Division’s Fraud Section.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Former Owner of Electrical Construction Company Pleads Guilty to Felony Tax ChargeRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on February 8, 2019, Susan Wenszell (57) of Milwaukee, Wisconsin, pleaded guilty to one count of failing to account for and pay federal payroll taxes to the Internal Revenue Service (“IRS”), in violation of Title 26, United States Code, Section 7202.
According to documents filed in court, Wenszell was the president and owner of J. Wenszell Enterprises Inc., an outdoor electrical construction company formed by Wenszell’s husband and his brother. The payroll taxes in question consisted of federal income taxes, Social Security taxes, and Medicare taxes withheld from the wages of employees of J. Wenszell Enterprises.
From the second quarter of 2012 through the fourth quarter of 2015, Wenszell withheld more than $1.2 million from employee wages but paid only $13,966.88 to the IRS. In addition, during the years 2010 - 2011, Wenszell withheld and failed to pay an additional $394,000. Wenszell also failed to pay the employer's share (or "matching share") of payroll taxes during the years 2010-2015, which totaled almost $530,000. Throughout this period, Wenszell failed to file any quarterly payroll tax returns with the IRS.
During the years 2012-2015, despite paying almost none of the required payroll taxes, Susan Wenszell and her husband withdrew more than $1.1 million from their business to pay personal expenses.
Wenszell faces up to five years in prison and fines of up to $250,000. She is scheduled to be sentenced on May 28, 2019.
This matter was investigated by the Internal Revenue Service Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Matthew Jacobs.
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Felon Sentenced to Prison for Possession of FirearmRead the Press Release
NEWPORT NEWS, Va. – A previously convicted felon was sentenced today to over three years in prison for possessing a firearm.
“Convicted felons who possess a firearm will be held accountable and prosecuted,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We remain steadfast in our commitment to removing guns from the hands of criminals as they present a real danger to the safety of our law enforcement partners and members of the communities they serve.”
According to court documents, in May 2018, Newport News Police officers attempted a traffic stop on a vehicle that did not use a turn signal. The vehicle later pulled over and officers observed Kenneth S. Pressley, 43, exit the passenger side of the vehicle, clutching both of his hands at the center of his waistband and flee on foot. An officer followed Pressley to the backyard of the residence, and observed him bent over at the waist and heard a firearm discharge. The officer gave Pressley verbal commands, but Pressley continued to flee from the officer for a short distance. Pressley ultimately complied and was taken into custody, and officers later recovered a Glock 23 .40 caliber handgun containing 12 rounds of ammunition, as well as the bullet Pressley discharged on scene.
“The men and women of ATF work tirelessly day in and day out, along with our law enforcement partners, to rid our streets of illegal guns and violent crime and those who jeopardize the safety of our citizens and communities,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “Be assured, if you use guns to commit violence, we are coming for you.”
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, Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Megan M. Cowles 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. 4:18-cr-71.
Federal Jury Finds North Fort Myers Man Guilty of FEMA FraudRead the Press Release
Fort Myers, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Tommy N. Tracy (72, North Fort Myers) guilty of fraud in connection with a major disaster. Tracy faces a maximum penalty of 30 years in federal prison. His sentencing hearing is scheduled for May 13, 2019.
According to testimony and evidence presented at trial, on September 13, 2017, Tracy applied for Federal Emergency Management Agency (FEMA) assistance for a residence located at 18301 Slater Road in North Fort Myers. He claimed that this was his primary residence, that he was living there at the time of the disaster, and that he did not own a rental property affected by the disaster. In fact, the property on Slater Road was not his primary residence, he was not residing there at the time of the disaster, and it was a rental property owned by him. Tracy fraudulently received over $24,000 in disaster assistance, including an additional six months of shelter assistance from FEMA.
This case was investigated by the Department of Homeland Security – Office of Inspector General. It is being prosecuted by Chief Assistant United States Attorney Jesus M. Casas and Assistant United States Attorney Trenton Reichling.
Federal Jury Convicts North Minneapolis Gang Member for His Role in Violent Drug Trafficking ConspiracyRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of HAKEEM MALIK DONTAE FLAX, a/k/a “Keem,” 32, for crimes related to violent gang activity, including conspiracy, distribution of heroin, and firearms violations. FLAX was found guilty following a four-day trial before Judge Wilhelmina M. Wright in U.S. District Court in Saint Paul, Minnesota. Prior to trial, FLAX pleaded guilty to one count of felon in possession of ammunition. Co-defendants DOMONICK DESHAY WRIGHT, BRIAN FUNTANOUS MACK, and JAMES LAVELL BROWN each pleaded guilty to count of conspiracy to possess a firearm in furtherance of a drug trafficking crime.
“This conviction signifies the aggressive stance my office is taking against gun and gang violence under the Project Safe Neighborhood crime reduction strategy,” said U.S. Attorney Erica MacDonald. “We are committed to the work of ensuring safe neighborhoods and communities for all Minnesotans.”
“These individuals were engaged in gang warfare that resulted in shootings deaths of gang members on both sides of the conflict,” said Assistant U.S. Attorney Thomas Calhoun-Lopez. “Their actions posed a clear and present danger to Minneapolis communities through dangerous drug trafficking and public shootings. This conviction is a victory for North Minneapolis.”
“Hakeem Flax and his associates caused a significant amount of violence in furtherance of their drug distribution activities,” said ATF Assistant Special Agent in Charge Kirk Howard. “Getting this group off the streets is a huge win for North Minneapolis, which has been plagued by violence. There is more work to be done there, but this verdict is a step in the right direction toward making that community safer for residents.”
As proven at trial, FLAX and his co-defendants maintained active membership in the 1-9 Block Dipset Gang with the purpose of making money for the gang through criminal acts, including distribution of heroin. As part of the gang’s heroin distribution scheme, FLAX and other members of the gang possessed, used and carried firearms in order to protect themselves from rival gang members and maintain their drug distribution territory.
As proven at trial, members of the 1-9 Block Dipset Gang were involved in a violent gang war with rival North Minneapolis gangs, including the Tre Tre Crips and the Young-N-Thuggin gangs, which resulted in the shooting deaths of gang members on both sides of the conflict. Disputes over gang territories and retaliation for prior acts of violence also contributed to the gun violence. As an example, on August 5, 2017, FLAX shot and killed a member of the rival Tre Tre Crips gang in a parking lot outside of a North Minneapolis restaurant.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department. This case is part of Project Safe Neighborhoods, an initiative that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
This case is being prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.
Defendant Information:
HAKEEM MALIK DONTAE FLAX, a/k/a “Keem,” 32
Vadnais Heights, Minn.
Convicted:
- Conspiracy to possess a firearm in furtherance of a drug trafficking crime, 1 count
- Conspiracy to distribute heroin, 1 count
- Discharge of a firearm in furtherance of a drug trafficking crime, 1 count
- Felon in possession of ammunition, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Jury Convicts Morristown Resident for Methamphetamine TraffickingRead the Press Release
GREENEVILLE, Tenn. – On February 13, 2019, following a two-day trial in the U.S. District Court, before the Honorable J. Ronnie Greer, Senior U.S. District Judge, a jury convicted Brandon Lee Alexander, 36, of Morristown, Tennessee, of possession with the intent to distribute 50 grams or more of methamphetamine; possession with the intent to distribute five grams or more of methamphetamine; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a convicted felon. Sentencing is set for 9:00 a.m., June 3, 2019, in U.S. District Court in Greeneville.
Alexander faces a minimum sentence of 15 years to a maximum of life in prison. There is no parole in the federal system.
Evidence presented at trial revealed that as a result of a traffic stop by the Morristown Police Department in April 2017, Alexander was found to have 28 grams of methamphetamine in his waistband and also possess $11,580 cash and a loaded semi-automatic pistol. Alexander was arrested and released on bond the following day. In May 2017, Alexander was again pulled over by law enforcement and had 100 grams of methamphetamine in his possession.
Alexander was part of a 20-defendant indictment returned by the federal grand jury in February 2018 charging various offenses related to methamphetamine trafficking, firearms, and money laundering. All defendants except Alexander pleaded guilty.
The investigation leading to the indictment was the product of a partnership between the Morristown Police Department, Hamblen County Sheriff’s Department, Grainger County Sheriff’s Office, Cocke County Sheriff’s Office, Newport Police Department, Third Judicial Drug Task Force, Tennessee Highway Patrol, Appalachian High Intensity Drug Trafficking Area - Rocky Top Task Force, Third Judicial District Attorney General’s Office, U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and FBI. Assistant U.S. Attorneys Thomas A. McCauley and J. Christian Lampe represented the United States at trial.
The investigation was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
This case was also part of the Appalachia High Intensity Drug Trafficking Areas (HIDTA) program. The HIDTA program enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States. The program began in 1988 when Congress authorized the Director of The Office of National Drug Control Policy designate areas within the United States that exhibit serious drug trafficking problems and harmfully impact other areas of the country as HIDTAs.
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Federal Grand Jury Indicts Corona Lawyer Found with Illegal Guns, Silencers, Hand Grenade and Fake FBI CredentialRead the Press Release
LOS ANGELES – A California lawyer and former Rialto police officer was indicted today by a federal grand jury after he was found with a fake FBI credential, a hand grenade, silencers and several illegal firearms, including a loaded AR-type semiautomatic rifle.
Sergio Lopez de Tirado, 43, of Corona, was named today in a five-count indictment that charges him with two counts of possession of unregistered firearms, two counts of possession of firearms without a serial number, and one count of possession of a fraudulently made government seal.
A Riverside County sheriff’s deputy found Lopez de Tirado on December 21 asleep in the passenger’s side of a pickup truck that was parked with its doors wide open blocking a driveway in Norco. According to a criminal complaint previously filed in this case, Lopez de Tirado appeared intoxicated, had difficulty stepping out of the truck and identified himself as former “Rialto PD.” Lopez de Tirado was found to have multiple loaded firearms, a knife in a sheath on his person, and a hand grenade in a holster under his arm.
A subsequent search of the truck allegedly produced a fraudulent FBI credential. The search also produced multiple firearms, including an unregistered MK9 9mm semiautomatic rifle and two unregistered firearm silencers, according to the affidavit in support of the complaint. All of the firearms recovered from the vehicle are alleged to have been loaded, including the AR-type rifle with a mounted silencer. Lopez de Tirado was taken into state custody, and was subsequently released after posting bail.
During the early morning hours of January 30, a California Highway Patrol officer found Lopez de Tirado and a passenger in a pick-up truck parked the wrong way on the right shoulder of Interstate 15 in Corona, the affidavit states. The officer determined that Lopez de Tirado’s driver’s license had been suspended and ordered his truck impounded. A search of the truck produced a loaded and unregistered short barrel AR-type semiautomatic rifle, according to the affidavit.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Lopez de Tirado is scheduled to be arraigned on the indictment on February 27 in United States District Court.
Lopez de Tirado, who has been in federal custody since he was arrested pursuant to the criminal complaint on February 1, faces a statutory maximum sentence of 10 years in federal prison for each of the four firearm-related charges and five years on the fraudulent government seal possession charge.
This case was investigated by the FBI’s Inland Empire Joint Terrorism Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Substantial assistance was provided by the Riverside County Sheriff’s Department, the Rialto Police Department and the California Highway Patrol.
This case is being prosecuted by Assistant United States Attorney Reema M. El-Amamy of the Terrorism and Export Crimes Section.
Eagle Butte Man Indicted on Methamphetamine and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance, Maintaining Drug-Involved Premises, Distribution to Persons Under Age Twenty-One, Possession With Intent to Distribute a Controlled Substance, and Prohibited Person in Possession of a Firearm.
Jess Brian Ducheneaux, age 56, was charged by Superseding Indictment on January 23, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 14, 2019, and pled not guilty to the Superseding Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $8,000,000 fine, 10 years of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
Ducheneaux was indicted for Conspiracy to Distribute a Controlled Substance in December 2018. The Superseding Indictment further alleges that Ducheneaux maintained a residence where he provided methamphetamine to others, including a person under the age of twenty-one. The Superseding Indictment further alleges that Ducheneaux is an unlawful user of and addicted to a controlled substance which prohibits him from possessing firearms, however, it is alleged he was in possession of two firearms at the time of his arrest.
The charges are merely accusations and Ducheneaux is presumed innocent until and unless proven guilty.
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.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Ducheneaux was released on bond pending trial, which is set for April 16, 2019.
Durham Resident Sentenced for Conspiracy Targeting North Carolina MedicaidRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced TAMARA PERRY MCCAFFITY, 57, of Durham, North Carolina to 46 months imprisonment, followed by 3 years of supervised release. MCCAFFITY was also ordered to forfeit various real estate properties and to pay restitution in the amount of $523,783.00 to North Carolina Medicaid, among other terms of the judgment.
MCCAFFITY was named in a Criminal Information filed on July 17, 2018 which charged her with conspiracy to commit health care fraud. On October 19, 2018, MCCAFFITY pled guilty to the charge.
According to the charging instrument, statements made in open court, and other public information, MCCAFFITY operated two mental health businesses in North Carolina (Dreamworks II and Prominence Consulting & Therapeutic Services) that were used to submit over $900,000 in fraudulent billings to Medicaid over a three-year period. As part of the conspiracy, the billings submitted by MCCAFFITY’s companies claimed reimbursement for mental health services that were never rendered. For example, the Dreamworks II submissions included claims in which the rendering clinician supposedly conducted one-hour counseling sessions for more than 24 clients in a single day. Both Dreamworks II and Prominence Consulting also used stolen Medicaid beneficiary information and/or clinician information. Prominence Consulting, for instance, was a shell company registered to an empty office suite in Raleigh, but it submitted thousands of false claims seeking reimbursement for services purportedly rendered on behalf of Medicaid beneficiaries. In truth, no services were ever provided by Prominence, and the Medicaid beneficiary and clinician information listed on the claims was fraudulently obtained and used in furtherance of the scheme.
Mr. Higdon commented: “The defendant engaged in an elaborate scheme to defraud the taxpayers of this country and we are very pleased with the sentence the court imposed. Prorection of government programs designed to help the most vulnaerable among us is a key priority of this office and of the United States Justice Department.”
“When people defraud the Medicaid program, they’re cheating taxpayers and taking away resources from people who need healthcare,” said Attorney General Josh Stein. “My office will continue to hold people responsible for these fraudulent practices.”
MCCAFFITY’s co-conspirators included Christopher Leon Brown, who was previously convicted and sentenced by the Court to 40 months in prison.
Investigation of this case was conducted by the Federal Burean of Investigation (FBI) and the North Carolina Department of Justice, Medicaid Investigations Division. Assistant United States Attorney Adam F. Hulbig represented the government.
Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was sentenced yesterday in federal court in Boston for illegally reentering the United States after being deported.
Pablo Geraldo Baez Soto, 34, was sentenced by U.S. District Court Judge Indira Talwani to 18 months in prison and one year of supervised release. Baez Soto’s sentence is to be served consecutive to an 18 month sentence he is currently serving for a 2018 state conviction for distribution of heroin, cocaine, and fentanyl. Baez Soto will be subject to deportation upon completion of his sentences. In November 2018, Baez Soto pleaded guilty to one count of illegal reentry of a deported alien.
Baez-Soto was initially encountered by immigration officials in 2010, determined to be illegally present in the United States, and was deported to the Dominican Republic. Sometime thereafter, Baez-Soto illegally re-entered the United States and was arrested numerous times between 2014 and 2017.
United States Attorney Andrew E. Lelling and Todd Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
District of Nebraska’s U.S. Attorney’s Office Collects $3,978,627.98 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
United States Attorney Joe Kelly announced today that the District of Nebraska collected $3,978,627.98 in criminal and civil actions in Fiscal Year 2018. Of this amount, $1,836,812.43 was collected in criminal actions and $2,141,815.55 was collected in civil actions.
Additionally, The District of Nebraska worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $39,694.06 in cases pursued jointly by these offices. Of this amount, $8,094.06 was collected in criminal actions and $31,600.00 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 nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“Our criminal, civil and financial litigation units work tirelessly and are unheralded in their work to ensure civil and criminal debts owed to the United States and criminal debts owed to federal crime victims are collected,” said U.S. Attorney Joe Kelly.
“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 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.
Department of Veterans Affairs Official Sentenced to 11 Years in Prison for $2 Million Bribery Scheme Involving Program for Disabled Military VeteransRead the Press Release
A former U.S. Department of Veterans Affairs (VA) official was sentenced today for demanding and receiving bribes from three for-profit schools in exchange for enrolling disabled military veterans in those schools and facilitating over $2 million in payments from the VA using the veterans’ federal benefits.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General (OIG), Mid-Atlantic Field Office made the announcement.
James King, 63, of Baltimore, Maryland, previously pleaded guilty to an Information alleging one count of honest services and money/property wire fraud, one count of bribery of a public official, and one count of falsifying records to obstruct an investigation. King was sentenced by U.S. District Judge John D. Bates of the District of Columbia to serve 132 months in prison to be followed by three years of supervised release, and to pay $155,000 in restitution to the VA. Earlier this week, Judge Bates sentenced three school owners and employees who admitted to bribing King. Albert Poawui, the owner of Atius Technology Institute, was sentenced to serve 70 months in prison and ordered to pay $1.5 million in restitution. Sombo Kanneh, Poawui’s employee, was sentenced to serve 20 months in prison and ordered to pay $113,000 in restitution. Michelle Stevens, the owner of Eelon Training Academy, was sentenced to serve 30 months in prison and ordered to pay $83,000 in restitution.
“James King and his associates exploited an important VA program that provides valuable services to our disabled military veterans,” said Assistant Attorney General Benczkowski. “This prosecution once again demonstrates the Justice Department’s commitment to hold accountable those who seek to defraud government programs for their own personal enrichment.”
“James King blatantly betrayed his responsibility with the VA to provide job and educational counseling to disabled military veterans who turned to him for help,” said U.S. Attorney Liu. “Instead of helping our veterans, he lined his own pockets by taking bribes to send them to three sham schools that brought them only pain and frustration. Today’s sentencing holds him accountable for this breach of trust and this waste of taxpayer money.”
“King tried to use his position to enrich himself at the expense of veterans who have honorably served our country,” said FBI Special Agent in Charge DeSarno. “Today's sentencing makes it clear that such activity by anyone affiliated with the U.S. government will not be tolerated. The FBI will work closely with our partners to continue to aggressively investigate allegations of corruption.”
“We are pleased to see Mr. King, a person who abused his position of trust and the veterans he was supposed to serve, sentenced today,” said VA OIG Special Agent in Charge Lampkins. “This sentence sends a clear message that VA OIG is dedicated to prosecuting those that take advantage of VA programs that are intended to help our veterans and their families.”
According to King’s admissions made in connection with his plea, the Vocational Rehabilitation and Employment (VR&E) provides disabled U.S. military veterans with education and employment-related services. VR&E program counselors advise veterans under their supervision which schools to attend and facilitate payments to those schools for veterans’ tuition and necessary supplies.
From 2015 through 2017, King, using his position as a VR&E program counselor, demanded and received cash bribes from the owners of Atius Technology Institute (Atius), Eelon Training Academy (Eelon), and School A, a school purporting to specialize in physical security classes. King facilitated over $2 million in payments to Atius, over $83,000 to Eelon, and over $340,000 to School A, all in furtherance of King’s separate agreements with the respective school owners to commit bribery and defraud the VA. King agreed with Poawui and Stevens that they would each pay him, in cash, seven percent of the money they received from the VA in exchange for King steering veterans to their schools and facilitating VA payments. King similarly accepted cash payments from the owner of School A, who is identified as Person A in the Information, in exchange for the same official acts.
In order to maximize the profits from their fraud, all three school owners sent King and other VA officials false information about the education being provided to veterans, and King facilitated payments to all three schools knowing this information was false. King also admitted to repeatedly lying to veterans under his supervision in order to convince them to attend Atius, Eelon, or School A. For example, King falsely instructed one veteran that, unless he attended School A, his VR&E program benefits would “lapse.” King insisted that this veteran enroll in School A despite the veteran’s protests that he could not engage in physical security work due to a physical disability, and despite the fact that the veteran had enrolled in the VR&E program to pursue his dream of becoming a baker.
In early 2017, the VA initiated a fact-finding inquiry into Atius based on complaints by students as to the quality of education at the school. In August 2017, after King became aware of the inquiry, he created a falsified site visit report and instructed Poawui to send it to another VA official, all in an effort to obstruct the VA’s inquiry into Atius. In January 2018, King attempted to convince Poawui to lie to the grand jury about the purpose of the bribe payments.
King’s plea is the result of an ongoing investigation by the FBI’s Washington Field Office and the VA Office of Inspector General. Trial Attorney Simon J. Cataldo of the Criminal Division’s Public Integrity Section, former Assistant U.S. Attorney and current Fraud Section Trial Attorney Sonali D. Patel and Assistant U.S. Attorney David Misler of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Department of Veterans Affairs Official Sentenced to 11 Years in Prison for $2 Million Bribery Scheme Involving Program for Disabled Military VeteransRead the Press Release
WASHINGTON – A former U.S. Department of Veterans Affairs (VA) official was sentenced today to a total of 11 years in prison for demanding and receiving bribes from three for-profit schools in exchange for enrolling disabled military veterans in those schools and facilitating over $2 million in payments from the VA using the veterans’ federal benefits.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney for the District of Columbia Jessie K. Liu, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General (OIG), Mid-Atlantic Field Office made the announcement.
James King, 63, of Baltimore, Maryland, previously pleaded guilty to an Information alleging one count of honest services and money/property wire fraud, one count of bribery of a public official, and one count of falsifying records to obstruct an investigation. King was sentenced by U.S. District Judge John D. Bates of the District of Columbia to serve 132 months in prison to be followed by three years of supervised release, and to pay $155,000 in restitution to the VA. Earlier this week, Judge Bates sentenced three school owners and employees who admitted to bribing King. Albert Poawui, the owner of Atius Technology Institute, was sentenced to serve 70 months in prison and ordered to pay $1.5 million in restitution. Sombo Kanneh, Poawui’s employee, was sentenced to serve 20 months in prison and ordered to pay $113,000 in restitution. Michelle Stevens, the owner of Eelon Training Academy, was sentenced to serve 30 months in prison and ordered to pay $83,000 in restitution.
“James King and his associates exploited an important VA program that provides valuable services to our disabled military veterans,” said Assistant Attorney General Benczkowski. “This prosecution once again demonstrates the Justice Department’s commitment to hold accountable those who seek to defraud government programs for their own personal enrichment.”
“James King blatantly betrayed his responsibility with the VA to provide job and educational counseling to disabled military veterans who turned to him for help,” said U.S. Attorney Liu. “Instead of helping our veterans, he lined his own pockets by taking bribes to send them to three sham schools that brought them only pain and frustration. Today’s sentencing holds him accountable for this breach of trust and this waste of taxpayer money.”
“King tried to use his position to enrich himself at the expense of veterans who have honorably served our country,” said FBI Special Agent in Charge DeSarno. “Today's sentencing makes it clear that such activity by anyone affiliated with the U.S. government will not be tolerated. The FBI will work closely with our partners to continue to aggressively investigate allegations of corruption.”
“We are pleased to see Mr. King, a person who abused his position of trust and the veterans he was supposed to serve, sentenced today,” said VA OIG Special Agent in Charge Lampkins. “This sentence sends a clear message that VA OIG is dedicated to prosecuting those that take advantage of VA programs that are intended to help our veterans and their families.”
According to King’s admissions made in connection with his plea, the Vocational Rehabilitation and Employment (VR&E) provides disabled U.S. military veterans with education and employment-related services. VR&E program counselors advise veterans under their supervision which schools to attend and facilitate payments to those schools for veterans’ tuition and necessary supplies.
From 2015 through 2017, King, using his position as a VR&E program counselor, demanded and received cash bribes from the owners of Atius Technology Institute (Atius), Eelon Training Academy (Eelon), and School A, a school purporting to specialize in physical security classes. King facilitated over $2 million in payments to Atius, over $83,000 to Eelon, and over $340,000 to School A, all in furtherance of King’s separate agreements with the respective school owners to commit bribery and defraud the VA. King agreed with Poawui and Stevens that they would each pay him, in cash, seven percent of the money they received from the VA in exchange for King steering veterans to their schools and facilitating VA payments. King similarly accepted cash payments from the owner of School A, who is identified as Person A in the Information, in exchange for the same official acts.
In order to maximize the profits from their fraud, all three school owners sent King and other VA officials false information about the education being provided to veterans, and King facilitated payments to all three schools knowing this information was false. King also admitted to repeatedly lying to veterans under his supervision in order to convince them to attend Atius, Eelon, or School A. For example, King falsely instructed one veteran that, unless he attended School A, his VR&E program benefits would “lapse.” King insisted that this veteran enroll in School A despite the veteran’s protests that he could not engage in physical security work due to a physical disability, and despite the fact that the veteran had enrolled in the VR&E program to pursue his dream of becoming a baker.
In early 2017, the VA initiated a fact-finding inquiry into Atius based on complaints by students as to the quality of education at the school. In August 2017, after King became aware of the inquiry, he created a falsified site visit report and instructed Poawui to send it to another VA official, all in an effort to obstruct the VA’s inquiry into Atius. In January 2018, King attempted to convince Poawui to lie to the grand jury about the purpose of the bribe payments.
King’s plea is the result of an ongoing investigation by the FBI’s Washington Field Office and the VA Office of Inspector General. Trial Attorney Simon J. Cataldo of the Criminal Division’s Public Integrity Section, former Assistant U.S. Attorney and current Fraud Section Trial Attorney Sonali D. Patel and Assistant U.S. Attorney David Misler of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Dallas Tax Return Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
A tax return preparer operating in Irving, Texas, pleaded guilty today to conspiring to defraud the United States and to aiding and assisting in the preparation 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 Erin Nealy Cox for the Northern District of Texas.
According to documents and information provided to the court, Francisco Ventura owned and operated several tax preparation businesses located in Irving from at least 2012 through at least 2015. During 2014, Ventura ran a tax return preparation business named AJJ Tax and More, along with a second preparation business named Uptown Multi Services, which he co-owned with his co-defendant Mario Melendez.
From November 2013 and continuing through May 2014, Ventura conspired with Melendez and others to prepare fraudulent federal income tax returns, and he personally prepared individual income tax returns for clients that included false education credits and Schedule C expenses. Ventura also taught training classes for new tax return preparers during which he instructed employees how to prepare fraudulent tax returns in order to maximize client refunds. Ventura is responsible for attempting to cause over $8.3 million of tax loss to the United States.
Sentencing for Ventura is scheduled for June 14, 2019. Ventura faces a maximum of five years in prison for the conspiracy charge and three years in prison for the aiding and assisting in the preparation of a false tax return count, as well as a period of supervised release, restitution, and monetary penalties. Melendez pleaded guilty in November 2018 to conspiring to defraud the United States and to aiding and assisting in the preparation of false tax returns, and is awaiting sentencing.
Principal Deputy Assistant Attorney Zuckerman and U.S. Attorney Nealy Cox commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Alexander Effendi of the Tax Division and Assistant United States Attorney Melanie Smith, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Convicted Felon Sentenced to 5 Years in Prison Under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – John Overby, 49, of Brandon, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to 60 months in federal prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Christopher Freeze, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi. Overby was also ordered to pay a $1,500.00 fine.
On March 13, 2018, the Rankin County Sheriff’s Department conducted an undercover operation that resulted in deputies purchasing a firearm from Overby. Overby has a previous felony conviction for theft of a motor vehicle.
This case was investigated by the Federal Bureau of Investigation and the Rankin County Sherriff’s Department. It is being prosecuted by Assistant United States Attorney Chris Wansley.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Convicted Felon Sentenced to 151 Months for Possessing 11 Firearms and Dealing Crack Cocaine, Cocaine and HeroinRead the Press Release
NEWS RELEASE SUMMARY – February 15, 2019
SAN DIEGO – Convicted felon Dwight Wayne Jordan, aged 60, a San Diego resident, was sentenced today to 151 months for knowingly and intentionally possessing, with intent to distribute, cocaine base (i.e., crack cocaine), cocaine and heroin along with illegally possessing eleven firearms that included semi-automatic weapons, shotguns, and .357 Magnum revolvers among others.
U.S. District Judge Gonzalo P. Curiel also ordered forfeiture of each of the eleven firearms and ammunition seized; $43,440 in United States currency; and a 2013 Porsche Cayenne in which a portion of Jordan’s narcotics proceeds were located. During sentencing, Judge Curiel explained that Jordan’s narcotics distribution efforts were “deadly, crippling and so destructive . . ..” and that Jordan was responsible for putting “so much poison out to a community that is already underserved.”
Through his plea agreement, Jordan admitted that, on September 8, 2018, he was the driver and sole occupant of a BMW X3 traveling on the I-94 near Market Street in San Diego when a San Diego Police Department (SDPD) Officer attempted to conduct a lawful traffic stop. Although Jordan initially yielded, as the officer exited his vehicle, Jordan accelerated and attempted to flee, running two red lights. While fleeing, Jordan threw a bag from the car window containing approximately two kilograms of cocaine that was recovered by SDPD. After the vehicle was stopped, a search yielded more than $6,900 that Jordan later admitted were the proceeds of narcotics trafficking. The attached photo (Attachment 1), filed with the Government’s sentencing papers, depicts items seized from the vehicle.
On September 18, 2018, law enforcement also executed follow-up search warrants at Jordan’s residence and alleged business -- the “Cuttin up” barbershop -- in San Diego. Those searches yielded eleven firearms; $36,499 in cash, including the cash found in the Porsche Cayenne, all of which resulted from narcotics trafficking; and significant quantities of cocaine base, cocaine and heroin. Jordan admitted that he illegally possessed the eleven firearms as well as the drugs, which he intended to further distribute. Due to a prior drug felony conviction, Jordan was prohibited from possessing a firearm or ammunition under federal law. The attached photo (Attachment 2), also filed with the Government’s sentencing papers, depicts items seized from Jordan’s residence.
“Drugs and guns present a potentially lethal combination that will not be tolerated in America’s Finest City” said U.S. Attorney Robert S. Brewer, Jr. “The U.S. Attorney’s Office is steadfastly committed to protecting our community from the dealers of pernicious drugs that destroy families, wreak havoc on our streets, and provoke fear in our neighborhoods.”
The case was prosecuted by Assistant U.S. Attorney Larry Casper.
The case is the result of the ongoing efforts of the Organized Crime Drug Enforcement Task Force (OCEDTF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCEDTF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Criminal Case Number 18-cr-4496
Dwight Wayne Jordan Age: 60 San Diego, California
SUMMARY OF CHARGES
Count 1:
Possession With the Intent to Distribute Cocaine Base, Cocaine and Heroin, 21 U.S.C. 841(a)
Maximum penalties: Life in prison, and a mandatory minimum 10 years; $10,000,000 fine; at least five years’ supervised release up to life; Mandatory Special Assessment of $100; Forfeiture
Count 2:
Felon in Possession of a firearm, 18 U.S.C. 922(g)(1)
Maximum penalties: 10 years custody $250,000 fine and 3 years supervised release; Mandatory Special Assessment of $100; Forfeiture
INVESTIGATING AGENCIES
Drug Enforcement Administration
Bureau of Alcohol Tobacco Firearms and Explosives
San Diego Police Department
Convicted Felon Found Guilty of Federal Firearm ChargeRead the Press Release
WASHINGTON – Manuel D. Reynoso, 36, of Glen Burnie, Md., was found guilty today following a jury trial in the U.S. District Court for the District of Columbia of possessing a firearm with an extended magazine loaded with ammunition; possession of marijuana; and possession of N-Ethypentylone, announced U.S. Attorney Jessie K. Liu.
The verdict followed a trial before the Honorable Chief Judge Beryl A. Howell. Reynoso is to be sentenced on April 5, 2019.
At the time of his arrest last spring by U.S. Secret Service (USSS) officers in Northwest Washington, Reynoso was on release pending sentencing for firearm and possession with intent to distribute marijuana offenses to which he had pled guilty in the Circuit Court for Prince George’s County, Md.
According to the government’s evidence, on May 16, 2018, at approximately 1:19 a.m., Secret Service officers were on routine patrol in the 200 block of 17th Street NW, when they observed a BMW being driven without headlights. The officers conducted a traffic stop of that BMW, which Reynoso was driving with two passengers. An officer approached the driver’s side window and smelled the odor of marijuana. The officer asked if anyone had been smoking in the vehicle, and Reynoso replied no. Reynoso then voluntarily picked up and held in his hand marijuana that was wrapped in a dollar bill, showed it to the officer, and said, “This is all we have.” As officers were asking the passengers to exit the BMW so that it could be searched, Reynoso, without being asked, got out of the BMW. While fumbling with a cellular telephone in his hand, Reynoso began to walk toward the front of his car. He then ran from the police.
An officer conducted a plain view search of the BMW and observed in the front passenger door map pocket a magazine with ammunition for a subcompact pistol. Following a search by Secret Service and U.S. Park Police officers, the defendant was found near the Tidal Basin, stopped, and arrested. During an initial search of Reynoso at the Tidal Basin, a large amount of U.S. currency and other items were recovered from him. While Reynoso was at the Park Police’s District One, additional U.S. currency and 0.069 grams of N-Ethylpentylone, a methamphetamine, were found on his person.
Additionally, during a search of the BMW, an officer technician recovered a Glock 27 .40 caliber semi-automatic pistol with an extended magazine loaded with 20 cartridges from under the driver’s front floor mat; the magazine and ammunition from the front passenger door map pocket; 2.646 grams of marijuana; and a small amount of U.S. currency. A total of $2,890 in U.S. currency was recovered.
In announcing the verdict, U.S. Attorney Liu stated, “My Office’s top priority is the safety of the people who live and work in Washington, D.C., and that means protecting them from the danger posed by illegal firearms. This case shows our commitment to doing just that. This defendant previously had been convicted of a serious crime and had no business possessing a firearm.”
U.S. Attorney Liu commended the work of the U.S. Secret Service officers who were the primary investigative officers, as well as officers and special agents from assisting law enforcement agencies, including the U.S. Park Police, the Metropolitan Police Department (MPD), and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Rommel Pachoca, Catherine O’Neal, and Kim Hall; Supervisory Paralegal Specialist Mary Downing; Legal Assistant Latoya Wade, and Litigation Technology Unit Specialists Jeanie Lattimore-Brown, William Henderson, Leif Hickling, Kimberly Smith and Ron Royal.
Contractor Who Put His Workers at Risk of Asbestos Exposure Sentenced in Federal CourtRead the Press Release
An experienced Algona contractor who purchased and renovated the former Kossuth County Home without thoroughly inspecting for asbestos was sentenced February 13, 2019, to two years of probation.
Steven A. Weaver, age 61, from Algona, Iowa, received sentence after an October 11, 2018 guilty plea to one count of violating clean air work practice standards.
In a plea agreement, Weaver admitted he was an experienced contractor and building inspector who had worked for various Iowa municipalities since the early 2000s. During this time, Weaver performed work for the municipalities that was financed by the United States Department of Housing and Urban Development through the Iowa Finance Authority. Weaver was responsible for conducting initial inspections of residential properties to determine whether it was cost-effective to rehabilitate each home. In conjunction with this work, Weaver gained experience working with lead and asbestos.
In November 2013, Weaver purchased the former Kossuth County Home in the Algona area. Weaver intended to convert the building into apartments to be known as “The Oasis.” Weaver hired workers to renovate the building. None of these workers were licensed to remove asbestos. Prior to beginning the renovation, Weaver failed to thoroughly inspect the building for asbestos to determine whether it was subject to regulation.
In November 2014, the Environmental Protection Agency (“EPA”) searched Weaver’s property and determined piping in the basement contained regulated asbestos. Weaver’s workers had already removed the piping. An EPA agent asked Weaver whether he had notified the Iowa Department of Natural Resources (“IDNR”) before the renovation and, when Weaver indicated he had not, the EPA agent instructed Weaver to report to IDNR. However, Weaver did not notify IDNR. Instead, Weaver continued the renovation operation in late 2014 without properly notifying IDNR.
Weaver was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Chief Judge Strand indicated the offense was “aggravating” because Weaver had cut corners on his own renovation project and potentially put his workers at risk of asbestos exposure. Weaver was sentenced to two years of probation, fined $10,000, and ordered to pay costs of prosecution in the amount of $1,573.35.
The case was prosecuted by Assistant United States Attorneys Tim Vavricek and Matt Cole and investigated by the Environmental Protection Agency.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3039-LTS.
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Chinese National Sentenced to Prison for Selling Counterfeit Computer PartsRead the Press Release
A Beijing, China man was sentenced today to 54 months in federal prison for directing the shipment of counterfeit computer-networking equipment into the Southern District of Texas.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas made the announcement.
Ruiyang Li, 40, was sentenced today to serve 54 months in federal prison by U.S. District Judge Ewing Werlein Jr. The court reserved the determination of restitution to the victims of Li’s trademark counterfeiting—including Cisco Systems Inc., The Hewlett-Packard Company and Intel Corporation—until a later date. Because Li is not a U.S. citizen, he is expected to be deported after serving his prison sentence.
From at least 2007 until in or about June 2017, Li directed the shipment of counterfeit computer-networking equipment into the Southern District of Texas, first when selling to a retailer in Magnolia, Texas, and eventually when selling to law enforcement acting in an undercover capacity. Over this time period, Li sold counterfeit networking products through several business entities, often hiding behind layers of personal and corporate aliases to evade detection by law enforcement. Li also used various means to conceal his unlawful conduct, including by sending and receiving payments using accounts that did not appear connected, at least publicly, to companies trafficking in illicit products. Li and his customers would also agree to mislabel packages, break up shipments into separate components, alter destination addresses and use multiple forwarding companies based in the United States. These methods, in Li’s mind, made shipping counterfeit parts “safer,” which in practice meant delaying or complicating detection by U.S. authorities.
State and local governments rely on complex computer networking technology, including the transceivers and other parts that were trafficked in this case, to manage critical data and operations. This same technology is also prominent in banks, hospitals, air traffic control installations, power plants and other essential infrastructure. Because counterfeit parts are often not subject to stringent manufacturing requirements, they present a significant health and safety risk to communities across the United States.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with significant assistance from U.S. Customs and Border Protection. The case was prosecuted by Senior Trial Attorney Timothy C. Flowers of the Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jay Hileman.
Chinese National Sentenced for Selling Counterfeit Computer PartsRead the Press Release
HOUSTON – A Beijing, China, man was sentenced to federal prison today for directing the shipment of counterfeit computer-networking equipment into the Southern District of Texas.
U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division made the announcement.
U.S. District Judge Ewing Werlein Jr. sentenced Ruiyang Li, 40, to serve 54 months in federal prison. The court reserved the determination of restitution to the victims of Li’s trademark counterfeiting—including Cisco Systems Inc., The Hewlett-Packard Company and Intel Corporation—until a later date. Because Li is not a U.S. citizen, he is expected to face deportation proceedings after serving his prison sentence.
From at least 2007 until in or about June 2017, Li directed the shipment of counterfeit computer-networking equipment into the Southern District of Texas, first when selling to a retailer in Magnolia and eventually when selling to law enforcement acting in an undercover capacity. Over this time period, Li sold counterfeit networking products through several business entities, often hiding behind layers of personal and corporate aliases to evade law enforcement detection. Li also used various means to conceal his unlawful conduct, including by sending and receiving payments using accounts that did not appear connected, at least publicly, to companies trafficking in illicit products. Li and his customers would also agree to mislabel packages, break up shipments into separate components, alter destination addresses and use multiple forwarding companies based in the United States. These methods, in Li’s mind, made shipping counterfeit parts “safer,” which in practice meant delaying or complicating detection by U.S. authorities.
State and local governments rely on complex computer networking technology, including the transceivers and other parts that were trafficked in this case, to manage critical data and operations. This same technology is also prominent in banks, hospitals, air traffic control installations, power plants and other essential infrastructure. Because counterfeit parts are often not subject to stringent manufacturing requirements, they present a significant health and safety risk to communities across the United States.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with significant assistance from Customs and Border Protection. Assistant U.S. Attorney Jay Hileman and Senior Trial Attorney Timothy C. Flowers of the Computer Crime and Intellectual Property Section prosecuted the case.
California Man Pleads Guilty to Sexually Exploiting Minor He Met While Playing “Clash of Clans”Read the Press Release
A Fresno, California man pleaded guilty today to using the internet to coerce and entice a minor into producing child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Assistant Director in Charge Nancy McNamara of the FBI Washington Field Office and Chief of Police Barry M. Barnard of the Prince William County Police Department made the announcement.
Emilio Morales, 29, pleaded guilty to one count of coercion and enticement of a minor into illegal sexual activity before U.S. District Judge Liam O’Grady of the Eastern District of Virginia. Sentencing is scheduled for May 31.
According to admissions made in connection with his guilty plea, Morales met the 11-year-old victim while playing the online game “Clash of Clans.” In 2017, Morales began grooming the victim over Clash of Clans before proposing that he and the victim communicate privately over the online chatting application Kik Messenger. While communicating over Kik Messenger, Morales coerced and persuaded the victim to produce and send him sexually explicit images and videos. The conduct ceased when, despite Morales’s attempts at manipulation, the minor victim refused to participate in any further sexual activity.
The case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force and the Prince William County Police Department, with substantial assistance from the FBI’s Fresno Resident Agency. It is being prosecuted by Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney D. Russell of the Eastern District of Virginia.
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. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Browning man sentenced to 16 years for sexually abusing, giving meth to minorRead the Press Release
GREAT FALLS—A Browning man convicted of having sex with and giving methamphetamine to a minor at his home on the Blackfeet Indian Reservation was sentenced on Thursday to 16 years in prison and six years of supervised release, U.S. Attorney Kurt Alme said.
Bruce Dragonfly, 56, pleaded guilty in July to aggravated sexual abuse of a minor and to distribution of a controlled substance to a minor.
U.S. District Judge Bryan M. Morris presided.
An investigation found that in 2015 at Dragonfly’s home, the victim, a minor, and others attended a party in which everyone could use methamphetamine together. The evidence, prosecutors said, showed that Dragonfly supplied at least some of the meth to the partygoers. During the party, Dragonfly requested the victim perform a sex act on him and in exchange, provided her meth.
Dragonfly continued providing the victim meth in exchange for sex, money or other non-sexual favors until mid-2017, both on and off the Blackfeet Reservation. Dragonfly and the victim typically communicated through Facebook and Internet chat services to arrange meetings.
In an interview with FBI agents in April 2018, Dragonfly confirmed he had previously provided the victim with meth in exchange for sex.
Assistant U.S. Attorney Jeffrey Starnes prosecuted the case, which was investigated by the FBI and Blackfeet Law Enforcement Services.
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