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27 March 2019
Federal Court Shuts Down South Florida Tax Return PreparersRead the Press Release
A federal court in Miami, Florida, entered a permanent injunction today barring Vilbrun Simon, Saintanise Agenord, Simon Accounting & Tax Services LLC, and Village Tax Multi Services from preparing federal income tax returns for others, the Justice Department announced.
In the complaint filed in this case, the government alleged that defendants filed federal tax returns that fabricated income, deductions, and credits in order to falsely inflate the refunds claimed on their customers’ returns. The government further alleged that defendants usually deducted their fee for preparing returns from the customer’s refund without the customer’s knowledge.
After a three-day bench trial, the court granted the United States’ request for a permanent injunction prohibiting defendants from engaging in certain activities related to preparing tax returns for others. The court also prohibited defendants from operating, managing, or participating in any business which prepares federal tax returns. The court’s order also requires defendants to post notification on any entry into any business they own or operate, directly or directly, that no tax return will be prepared at such location or by any of the defendants at any other location.
In an earlier order, the court barred defendant Wilcienne Pierre from preparing tax returns for others.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Elkins man sentenced for methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Oscar Willard Thomas, of Elkins, West Virginia, was sentenced today to 30 months incarceration for methamphetamine distribution, United States Attorney Bill Powell announced.
Thomas, also known as “Will Thomas,” age 46, pled guilty to one count of “Distribution of Methamphetamine” in November 2018. Thomas admitted to selling methamphetamine in September 2016 in Randolph County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Drug Task Force investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge John Preston Bailey presided.
East Bay Resident Sentenced to Ten Years in Prison for Drug TraffickingRead the Press Release
OAKLAND– Marques Romale McCutcheon was sentenced today to 120 months in prison for possession with intent to distribute crack cocaine, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge.
McCutcheon, 39, of Dublin, Calif., pleaded guilty to the charge on October 22, 2018. According to his plea agreement, McCutcheon admitted that on May 18, 2017, he possessed approximately 83 grams of crack cocaine. The cocaine was divided into twelve small plastic bags McCutcheon intended to sell. Further, McCutcheon admitted he was arrested after police observed a transaction involving the sale of crack cocaine from a car McCutcheon occupied with other passengers while the car was parked in Oakland in the lot of a liquor store. McCutcheon also admitted in his plea agreement that he had $887 in cash on his person at the time of his arrest, and that the cash was proceeds of narcotics trafficking. McCutcheon also admitted that he had previously been convicted of a violent felony and a drug trafficking felony.
On July 21, 2018, a federal grand jury indicted McCutcheon for one count of possession with intent to distribute cocaine base in the form of crack cocaine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(iii). McCutcheon pleaded guilty to the charge.
At sentencing, Judge Gilliam found that McCutcheon is a career offender as that term is defined by the United States Sentencing Guidelines. Judge Gilliam concluded McCutcheon’s status as a career offender subjected him to a longer sentence under federal sentencing guidelines.
In addition to the prison term, Judge Gilliam ordered McCutcheon to serve a 5-year term of supervised release that will begin at the conclusion of his prison term.
Assistant U.S. Attorney Tom Green is prosecuting the case with the assistance of Elyza Delgado. The prosecution is the result of an investigation by the Berkeley Police Department with assistance from the FBI.
Dominican National Pleads Guilty to Drug Charges Stemming from Large-Scale Importation of CocaineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that ARRINSON DE LA CRUZ, 39, a citizen of the Dominican Republic, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to drug charges related to his role in the large-scale importation of cocaine into the U.S.
According to court documents and statements made in court, in 2016, De La Cruz, who was residing in Wolcott, Connecticut, on a tourist visa, conspired with others to transport approximately 1600 kilograms of cocaine from South America to the U.S. On August 6, 2016, a private jet, which was registered in the U.S., flew from the Dominican Republic to Venezuela where the cocaine was to be loaded onto the jet. From there, the jet was to fly Honduras where the cocaine would be loaded onto trucks for transport through Mexico into the U.S. De La Cruz had worked at an airport in the Dominican Republic and helped to coordinate the travel of the jet through the airport uninterrupted. A fake flight plan filed with Dominican authorities reported that the plane was traveling to Brazil. Ultimately, the plane crash-landed in Venezuela, the crew evaded capture by Venezuelan authorities, and the cocaine was diverted back to Colombia.
After the collapse of the cocaine importation scheme, De La Cruz attempted to coordinate additional shipments of drugs into the U.S, and also contacted others in and around Connecticut to sell heroin, cocaine and 2C-B, a synthetic psychedelic drug.
On September 18, 2016, De La Cruz was arrested in Milford, Connecticut, after a search of a car he was traveling in revealed 2C-B that De La Cruz intended to distribute in Massachusetts.
In November 2016 and December 2017, while he was released on bond, De La Cruz continued to conspire to distribute cocaine. He has been detained since his arrest on December 20, 2017.
De La Cruz pleaded guilty to one count of conspiracy to possess with intent to distribute, on board an aircraft registered in the U.S., five kilograms or more of cocaine, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of life imprisonment; one count of possession with intent to distribute 2C-B, an offense that carries a maximum term of imprisonment of 20 years; an one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
Judge Hall scheduled sentencing for June 25, 2019.
This investigation is being conducted by the Drug Enforcement Administration New Haven Task Force and the Wolcott Police Department. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Dominican National Charged with Fentanyl Trafficking and Identity TheftRead the Press Release
BOSTON – A Dominican national was charged today in federal court in Boston in connection with trafficking fentanyl, false representation of a Social Security number, and aggravated identity theft.
Omar Lugo, 44, a Dominican national residing in Dorchester, was indicted on two counts of distribution of, and possession with intent to distribute, more than 40 grams of fentanyl. In February 2019, Lugo, whose last name was unknown at the time, was arrested and charged by complaint with aggravated identity theft and false representation of a Social Security number. He has been in custody since.
Between November 2012 and July 2018, Lugo submitted applications for a Massachusetts Identification Card, a Massachusetts Learner’s Permit Exam, and a Massachusetts License using the name, Social Security number, and date of birth of a U.S. citizen from Puerto Rico.
In October 2016 and January 2017, on two separate occasions in Boston, Lugo sold more than 40 grams of fentanyl to a source cooperating with the government.
The charge of distribution of over 40 grams of fentanyl carries a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years of supervised release, and a fine of up to $5 million. The charge of aggravated identity theft provides for a mandatory two-years in prison to be served consecutive to any other sentence imposed. The charge of false representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Boston Police Department provided valuable assistance to the investigation. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Distributing and Receiving Child Pornography Leads to Federal Prison Time for St. Clair County ManRead the Press Release
William L. Isaac, 54, of O’Fallon, Illinois, has been sentenced to 180 months in federal prison for knowingly distributing and receiving child pornography over the internet, U.S. Attorney Steven D. Weinhoeft announced today. Chief United States District Judge Michael J. Reagan handed down the 15-year sentence, which is to be followed by five years of supervised release. Isaac also agreed to pay $3,000 in restitution to an identified victim whose image was found in the collection of child pornography he possessed.
In 2014, on two separate occasions, Isaac uploaded child pornography to a website chat room. Unbeknownst to Isaac, his activities were captured by the FBI, which was conducting a nationwide investigation of the website at the time.
In September 2017, during a voluntary interview with local FBI agents, Isaac confessed that he had uploaded images and videos of child pornography to chat rooms in the past. He also admitted that he regularly browsed child pornography images on the dark web, most recently that very same morning. A consensual search of his computer revealed the presence of 67 child pornography videos, including videos depicting children in bondage, child torture, and the sexual abuse of infants and toddlers. The videos had been downloaded between July and September 2017.
Earlier this year, Isaac pleaded guilty to a three-count indictment, charging two counts of child pornography distribution and one count of knowingly receiving child pornography over the internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States 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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Angela Scott.
Detroit man sentenced for heroin distributionRead the Press Release
ELKINS, WEST VIRGINIA – Dontez Rayshawn Hudson, of Detroit, Michigan, was sentenced today to 18 months incarceration for a heroin distribution charge, United States Attorney Bill Powell announced.
Hudson, age 34, pled guilty to one count of “Possession with Intent to Distribute Heroin” in October 2018. Hudson admitted to distributing heroin in Randolph County in May 2017.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
U.S. District Judge John Preston Bailey presided.
Defendants Sentenced to 15 Years in Federal Prison in NMI’s First Meth Manufacturing CaseRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands announced that defendants VINCENT DAVID CABRERA, JR. a/k/a “Bong,” 40, and EUGENE BLAS REPEKI, JR., a/k/a “Uncle,” 40, were each sentenced to 180-month terms of imprisonment for Conspiracy to Manufacture Methamphetamine.
The investigation revealed that from July 1, 2017, through February 25, 2018, Cabrera and Repeki, along with others, purchased pseudoephedrine, a precursor ingredient of methamphetamine, from local pharmacies. The men then used the substance to make over fifty grams of pure methamphetamine through the extremely dangerous and volatile “shake and bake” (or “one pot”) method. During sentencing on March 15, 2019, Chief U.S. District Judge Ramona V. Manglona found that both Cabrera and Repeki were leaders of the conspiracy. She also determined that their actions had caused a significant risk to human life.
United States Attorney Anderson stated, “The Department of Justice will not allow the CNMI to become a safe haven for the manufacture of illicit drugs. As this case demonstrates, the production of methamphetamine is not only dangerous, but can result in a substantial term in federal prison. I applaud the work of DEA and our local partners in combating this activity.”
The investigation was conducted by the Drug Enforcement Administration, with the assistance of task force officers from the CNMI Department of Public Safety and the CNMI Division of Customs. The case was prosecuted by Garth R. Backe, Assistant United States Attorney for the District of the NMI.
Crawford County Man Sentenced to Federal Prison for Methamphetamine and Firearm OffensesRead the Press Release
Michael S. Johnson, age 48, of Robinson, Illinois, has been sentenced to serve 210 months in federal prison for his convictions on methamphetamine and firearm charges, the United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today.
Johnson previously pleaded guilty to all charges in a five count indictment. Counts 1 through 3 charged Johnson with methamphetamine distribution on dates in April and May 2018. Count 4 charged Johnson with distribution of more than 5 grams of methamphetamine on May 5, 2018. Count 5 charged him with being a convicted felon in possession of a firearm on April 23, 2018.
The investigation was conducted by the Robinson, Illinois Police Department.
Coosa County Escapee Facing Federal ChargesRead the Press Release
Montgomery, Alabama – Yesterday, Shane Anthony Vernon, 28, from Kellyton, Alabama was arraigned in federal court on eight-felony charges, announced United States Attorney Louis V. Franklin, Sr. The eight charges include one count of kidnapping, two counts of carjacking, two counts of being a felon in possession of a firearm, and three counts of possessing a firearm in furtherance of a crime of violence. All of these crimes are alleged to have been committed in Elmore County in November 2017.
If convicted of all charges, Vernon faces a minimum sentence of 15 years in prison, and maximum sentence of life. There is no parole in the federal system.
An indictment is merely a method of alleging that a crime has been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt. Vernon’s trial has been set for August 12, 2019.
U.S. Attorney Franklin would like to thank the following agencies for their assistance with this case: the Coosa County Sheriff’s Office, the Elmore County Sheriff’s Office, and the Federal Bureau of Investigation (FBI). Assistant United States Attorney Joshua J. Wendell is prosecuting this case.
Convicted Felon in Philadelphia Found Guilty at Trial of Illegally Possessing Loaded FirearmRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Nafis Mullins, 27, of Philadelphia, was convicted today by a federal jury of one count of possession of a firearm by a convicted felon.
On May 1, 2018, at approximately 11:40 pm, Philadelphia police officers were patrolling the area of 24th and Oxford Streets in Philadelphia when they encountered a group of men on Oxford Street. When the officers stopped to ask the group what they were doing, all of the men turned to acknowledge the officers, except for the defendant. Instead, the defendant kept his back to the officers with his hands in the front pouch pocket of his bright orange sweatshirt. An officer asked the defendant to turn around and take his hands out of his sweatshirt, and the defendant failed to comply and fled from the police. As he ran, the defendant threw a dark object (later determined to be a firearm) up and to the left with his left hand before jumping over a small cinderblock wall in an attempt to conceal himself. After the defendant was stopped, law enforcement recovered the loaded firearm. The defendant has several prior felony convictions which prohibit him from possessing a firearm.
“Reducing violent crime and keeping illegal guns off our streets are top priorities for the Department of Justice and my Office,” said U.S. Attorney McSwain. “The defendant, who was a convicted felon multiples times over, knew that he could not legally possess a gun, but decided the law did not apply to him. Thank you to our law enforcement partners for enforcing the law and helping keep our community safe from violence.”
“The investigation, arrest, and successful prosecution of Nafis Mullins serves as evidence of the effectiveness of strong and consistent collaboration between law enforcement agencies,” said Richard J. Ross Jr., Philadelphia Police Commissioner. “With the conviction and impending sentencing, Mullins, who is a recidivist offender, will no longer be able to re-offend in our neighborhoods. This, along with the continuing efforts of the Project Safe Neighborhoods partner agencies, will have an appreciable impact on the quality of life of the residents of our great city.”
This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, to address this crime trend, the Department announced the reinvigoration of PSN.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department, and the case is being prosecuted by Assistant United States Attorney Katherine Driscoll.
Columbia Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Wilbert Green, Jr., age 30, of Columbia, South Carolina, pleaded guilty in federal court to being a felon in possession of a firearm and ammunition.
Evidence presented in court established that at approximately 8:45 p.m. on April 13, 2018, officers of the Columbia Police Department and the Midlands Gang Unit were patrolling the Lorick Circle area of Columbia with special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) after having received several firearm-related reports the previous month. As they drove through an apartment complex on Lorick Circle, officers/agents observed what appeared to be a black pistol magazine protruding from Green’s right rear pants pocket. Officers/agents exited their vehicles and made contact with Green, who was also holding an open container of beer, in violation of the open container law. Green failed to comply with directives of officers/agents to quit reaching behind to his back pocket and to turn around and put his hands on a nearby car. Green advised officers/agents, “I know the law….I just got out of prison.” Officers secured Green and located a loaded Hi-Point 9mm with an extended magazine in Green’s rear right pants pocket. A ballistics analysis revealed that the Hi-Point 9mm handgun was linked to shell casings recovered from an unsolved July 2017 shooting off Garners Ferry Road. Officers/agents also learned that Green had outstanding warrants from 2015 for attempted murder and possession of a weapon during a violent crime in Clarendon County.
Federal law prohibits Green from possessing firearms and ammunition based upon prior North Carolina and South Carolina state convictions for assault with a deadly weapon to inflict serious injury (N.C. 2009); criminal domestic violence, wherein he threatened a female with a firearm and slapped her (S.C. 2013); and assault and battery 1st degree, wherein he shot a man during a robbery (S.C. 2015).
Green faces a maximum of 10 years in federal prison, a fine of $250,000, and 3 years of court-ordered supervision on the felon in possession of a firearm and ammunition charge.
Senior United States District Judge Cameron McGowan Currie of Columbia accepted the guilty plea and will impose sentence after she has received and reviewed a presentence report prepared by the United States Probation Office. Assistant United States Attorney Stacey D. Haynes of the Columbia office is prosecuting the case.
The case was investigated by ATF and the Columbia Police Department. It was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Clark County Man Sentenced for Possessing CarfentanilRead the Press Release
DAYTON – Craig H. Gilbreath, Jr., 20, of Springfield, was sentenced in U.S. District Court to 60 months in prison for possessing carfentanil.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, Springfield Police Chief Lee Graf and Acting Clark County Prosecutor Daniel P. Driscoll announced the sentence handed down by U.S. District Judge Walter H. Rice.
According to court documents, in June 2017, Gilbreath was encountered by police in Springfield, Ohio. Gilbreath ran from officers and ultimately threw bags containing approximately 14 grams of carfentanil.
Gilbreath pleaded guilty in August 2018 to one count of possessing with the intent to distribute more than 10 grams of carfentanil.
According to the DEA, carfentanil is an analogue of fentanyl and is 10,000 times more potent than morphine. Carfentanil is used in veterinary practice to immobilize large animals.
“Powerful opioids, such as Carfentanil, will continue to be a serious threat to America and Ohio as long as drug dealers such as Gilbreath are willing to put themselves and the community at risk,” said Special Agent in Charge Plancon. “Gilbreath was in possession of enough carfentanil to kill approximately 700,000 people. This case is a testament to the relentless determination of law enforcement to make a significant impact on the opioid supply in Ohio and to keep our communities drug free.”
U.S. Attorney Glassman commended the cooperative investigation by the DEA and Springfield Police Department, as well as Assistant United States Attorneys Andrew J. Hunt and Amy M. Smith, who are representing the United States in this case.
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Clairton Postal Service Employee Charged with Stealing $25 Gift Card from the MailRead the Press Release
PITTSBURGH - A resident of Clairton, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of theft of mail by a postal employee, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on March 26, named Mariah Nicole Gentile, 26, as the sole defendant.
According to the Indictment, on or about June 8, 2018, Gentile was an employee of the United States Postal Service and stole a $25 gift card that was intended to be conveyed by mail.
For Gentile’s offense, the law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Bond of $5,000 unsecured has been requested.
Assistant United States Attorney David Lew is prosecuting this case on behalf of the government.
The U.S. Postal Service-Office of Inspector General (USPS-OIG) conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Citizen of Dominican Republic Sentenced to 18 Months in Prison for Stealing Mail and Conspiracy to Commit Bank FraudRead the Press Release
CONCORD - Ariel Mendoza, 27, a citizen of Dominican Republic, has been sentenced to 18 months in prison for stealing items of mail and conspiracy to commit bank fraud, announced United States Attorney Scott W. Murray.
According to court documents, from November 2017 to March 2018, several residents of Salem and Manchester, New Hampshire, and Lawrence, Massachusetts, reported to their local police departments that they had used public mailboxes near their homes to mail personal checks or money orders that were not delivered to the intended recipients. On November 26, 2017, a video surveillance camera near a public mailbox in front of the U.S. Post Office in Salem, New Hampshire, captured images of Mendoza and another person as they stole items from the mailbox.
In addition, from November 2017 to May 2018, Mendoza and three other people knowingly deposited checks and money orders totaling more than $27,000 that were stolen from the mailboxes. After each deposit, Mendoza and his co-conspirators used debit cards assigned to the accounts to make cash withdrawals at ATMs and to purchase merchandise from retail businesses.
Mendoza pleaded guilty to the offenses on December 13, 2018. He faces likely deportation to the Dominican Republic after serving his prison sentence.
“Citizens should be able to trust that their mail is safe,” said U.S. Attorney Murray. “Those who steal from the U.S. mail should be aware that they face arrest and the possible imposition of prison time. We will work closely with our law enforcement partners to identify and prosecute those who commit financial crimes that harm the citizens of the Granite State.”
“Today’s sentencing reinforces the U.S. Postal Inspection Service’s commitment to investigating and seeking prosecution of individuals who steal mail,” said Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division. “The cooperation and hard work of our fellow law enforcement agencies illustrates the common mission of protecting our citizens and preserving the integrity of the U.S. Mail. Financial crimes such as these can have long lasting impacts for the victims.”
The case was investigated by United States Postal Inspection Service and the Manchester and Salem, New Hampshire Police Departments. It was prosecuted by Assistant United States Attorney Robert M. Kinsella.
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Canadian Telemarketers Who Defrauded Elderly Americans in Prescription Drug Discount Scam Headed to PrisonRead the Press Release
Earlier this morning, at the federal courthouse in East St. Louis, Illinois, three Canadian citizens were sentenced to prison for their roles in defrauding elderly Americans in a prescription drug discount card telemarketing scam. Fawaz Sebai, 41, and Vassilios Klouvatos, 34, both of Montreal, Quebec, were each sentenced to serve 44 months in prison. The third defendant, Lefkothea Klouvatos (Vassilios Klouvatos’ sister), 27, also of Montreal, Quebec, was sentenced to serve 30 months in prison.
All three defendants pled guilty to federal mail fraud, wire fraud, and conspiracy charges back in December 2018. As part of their guilty pleas, Fawaz Sebai and Vassilios Klouvatos admitted that they owned and operated a call room in Canada that marketed prescription drug discount cards to elderly Americans over the phone. Lefkothea Klouvatos admitted that she managed the call room.
The telemarketers who worked for the defendants routinely lied and misled the victims. One of the lies the telemarketers often used was that they were calling on behalf of Medicare. Sometimes the telemarketers stated or implied that the victims might lose their Medicare benefits if they did not purchase a prescription drug discount card. The telemarketers also concealed the fact that the prescription drug discount cards they were selling for $299 were available for free on the internet.
The defendants sold these prescription drug discount cards under various corporate names, including AFD Medical Advisors and Clinacall. The scheme defrauded over 5,000 people throughout the United States out of more than $1.9 million. At least seven of the scheme’s elderly victims reside within the Southern District of Illinois in the towns of Carterville, Centralia, Granite City, Highland, Johnson City, Harrisburg, and Smithton.
The case was indicted in July 2014, and the Department of Justice promptly requested that the Canadian government extradite the defendants to the United States to stand trial. The Canadian government extradited all three defendants in 2018.
This case was investigated by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The Montreal Office of the Royal Canadian Mounted Police provided substantial assistance in the investigation. In 2013, the Federal Trade Commission filed a civil action to stop the operations of this business in the United States. The case was prosecuted by Assistant United States Attorneys Michael J. Quinley and Scott A. Verseman.
Buffalo Photographer Facing Additional Charge of Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that the criminal complaint against Delshawn K. Trueheart, 43, of Buffalo, NY, has been amended to include an additional charge of production of child pornography. The defendant was arrested and charged by criminal complaint on March 20, 2019, with possession of child pornography. Production of child pornography carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that according to the amended complaint, on March 26, 2019, investigators reviewed an SD card seized from Trueheart’s residence during the execution of a federal search warrant. The SD card contained a video showing minor victim 1 naked in the defendant’s East Delavan Avenue photography studio while Trueheart took video of her.
Investigators also reviewed a thumb drive, which was seized at the photography studio during the execution of a federal search warrant. The thumb drive also contained a video which showed minor victim 1 and minor victim 2 removing their clothing and engaging in a sexual act. The video also contained other incidents of sexual activity involving the minor victims.
In March 2019, minor victim 1 reported to the Buffalo Police Department that Trueheart had a sexual relationship with her while she was between 15 and 17 years of age. Minor victim 1 stated that she had sexual relations with him at both his residence and his photography studio. The victim also reported that Trueheart took nude images of her and recorded them engaged in sexual intercourse.
A detention hearing is scheduled for March 28, 2019, at 9:30 a.m. before U.S. Magistrate Judge Jeremiah J. McCarthy.
The amended criminal complaint is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Buffalo Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Buffalo Man Pleads Guilty to Selling Heroin and FentanylRead 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 Marcos Mueses, 26, of Buffalo, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute heroin, butyryl fentanyl, 4-fluoroisobutyryl fentanyl, and fentanyl. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that between January of 2018 and May of 2018, the defendant and others conspired to distribute amounts of controlled substances. Specifically, on six separate occasions, Mueses and others sold amounts of controlled substances to an individual working with the Drug Enforcement Administration. Subsequent testing determined the substances contained heroin, butyryl fentanyl, and 4-fluoroisobutyryl fentanyl.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for June 20, 2019, at 3:00 p.m. before Judge Geraci.
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Bozeman woman admits using money management service to defraud court-appointed clientsRead the Press Release
MISSOULA – A Bozeman woman who ran a money management service for court-appointed clients unable to manage their own finances on Tuesday admitted embezzling funds from the clients and spending most of the money on gambling debts, U.S. Attorney Kurt Alme said.
Ellen Lorraine Van Ausdol, 77, pleaded guilty to wire fraud and to making and subscribing to a false income tax return. Van Ausdol faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Jeremiah C. Lynch presided. He will recommend Van Ausdol’s plea be accepted by Chief U.S. District Judge Dana L. Christensen, who is hearing the case. Sentencing was set for July 19. Van Ausdol was released.
Prosecution evidence showed that Van Ausdol operated a fiduciary business, called Fiduciary Consulting and Management. The business provided money management services for court-appointed clients, many of whom have mental deficiencies and lacked the ability to manage their own money.
An investigation found that Van Ausdol embezzled from her clients during a six-year period that started in about 2010 and ended in April 2016. Van Ausdol told law enforcement that she used the majority of the money to cover her gambling expenses.
In addition, Van Ausdol’s theft resulted in her owing the IRS additional income tax for the six-year period. In one of the tax counts, Van Ausdol signed a tax return for 2014, omitting the total amount of income from embezzled funds for that year.
The parties have not resolved the total fraud loss or tax loss and will address those issues at sentencing. The prosecution is alleging the fraud loss is $444,000 and the income tax loss is $52,894.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the IRS and FBI.
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Binghamton Woman Sentenced for Social Security FraudRead the Press Release
BINGHAMTON, NEW YORK – Patricia L. Williams, age 63, of Binghamton, was sentenced today to 5 years of probation for stealing Social Security benefits deposited into her deceased husband’s bank account and for concealing her receipt of those benefits.
The announcement was made by United States Attorney Grant C. Jaquith and John F. Grasso, Special Agent in Charge of the Social Security Administration (SSA) Office of the Inspector General, New York Field Division.
A jury voted to convict Williams following a 4-day trial in October 2018. The evidence demonstrated that the defendant’s husband passed away in 1990, but SSA was never notified of his death. SSA, believing the defendant’s husband was alive, continued to pay monthly benefits until 2013, which Williams withdrew and spent, knowing she was not entitled to the money. From 2008 to 2015, the defendant applied for and received Supplemental Security Income (SSI), concealing that she was taking her deceased husband’s benefits. SSI is a needs-based program, available to elderly, blind, and disabled individuals, that provides money to pay for living expenses.
Senior United States District Judge Thomas J. McAvoy also ordered Williams to pay restitution to the SSA in the amount of $32,581.00.
This case was investigated by the SSA Office of the Inspector General, New York Field Division, and was prosecuted by Special Assistant U.S. Attorney Jason W. White.
Armed Drug Dealer Sentenced to Five Years and a Day in PrisonRead the Press Release
PROVIDENCE – An armed Pawtucket heroin dealer has been sentenced to five years and one day in federal prison, announced United States Attorney Aaron L. Weisman, Pawtucket Police Chief Tina Goncalves, and Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle.
Leoner J. Leonardo, 23, was arrested by Pawtucket Police in July 2017, following a two-month investigation into Leonardo’s drug trafficking activities. The investigation included at least 17 controlled purchases of heroin, ten of which he was charged with, totaling approximately 36.67 grams of heroin.
According to information presented to the Court, on July 11, 2017, Pawtucket Police, with the assistance of members of the Rhode Island DEA Drug Task Force, executed a court-authorized search of Leonardo’s residence. Leonardo was located inside a locked upstairs bedroom. He refused verbal commands to open the door and officers and agents made a forced entry. Leonardo was found next to a mattress on the floor of the bedroom and was arrested. On the mattress, approximately two feet away from Leonardo, was a loaded 25-caliber semi-automatic pistol with an obliterated serial number. The firearm safety lever was off and the hammer was cocked back, ready to fire.
Law enforcement also seized approximately 18.94 grams of heroin from the residence which was packaged or being packaged for distribution and a small amount of cash.
Leonardo pleaded guilty in federal court on June 27, 2018, to conspiracy to distribute heroin, distribution of heroin, possession with intent to distribute heroin, and possession of a firearm in furtherance of drug trafficking. At sentencing, in addition to a term of incarceration of five years and one day, U.S. District Court Chief Judge William E. Smith also ordered Leonardo to serve three years of supervised release upon completion of his prison sentence.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
The matter was investigated by the Pawtucket Police Department, with the assistance of members of the Rhode Island DEA Drug Task Force.
The Rhode Island DEA Drug Task Force is comprised of law enforcement personnel from the DEA, Rhode Island State Police, and East Providence, Central Falls, Coventry, Cranston, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick and Woonsocket Police Departments.
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Antitrust Division Dedicates the Anne K. Bingaman Auditorium & Lecture HallRead the Press Release
Today, the Antitrust Division was honored to dedicate the Anne K. Bingaman Auditorium and Lecture Hall in the Liberty Square Building in Washington, DC. Anne Bingaman was the first woman to lead the Antitrust Division as Assistant Attorney General. She was nominated to the role by President Clinton and confirmed by the Senate on June 16, 1993. She served as Assistant Attorney General from 1993 to 1996.
Former Assistant Attorney General Bingaman was present and offered recollections from her time at the Division. The Honorable Diane P. Wood, Chief Judge of the U.S. Court of Appeals for the Seventh Circuit also shared remarks. The Division also was pleased to welcome other former Antitrust Division officials, including former Assistant Attorney General James Rill.
Included among her many accomplishments, former Assistant Attorney General Bingaman launched the Division’s criminal leniency program as well as the Division’s Paralegal Unit, both of which continue to this day. She also led major civil investigations into Microsoft’s monopolization of PC operating systems and into price fixing by two dozen NASDAQ securities firms.
To recognize Assistant Attorney General Bingaman’s many contributions to the Division, Assistant Attorney General Makan Delrahim chose to dedicate the newly renovated auditorium and lecture hall in the Liberty Square Building in her honor. This state-of-the-art facility is equipped with advanced displays, multimedia conference equipment, and broadcast capabilities. It will allow the Antitrust Division to host lectures; train lawyers, economists, and paralegals; and present valuable programming to advance the Division’s law enforcement and competition advocacy mission.
ABT Gang Member and Another Convicted for Transporting AliensRead the Press Release
CORPUS CHRISTI, Texas – Two members of a smuggling conspiracy have entered guilty pleas to their part in transporting illegal aliens in the trunk of a Ford 500 through the Sarita Border Patrol (BP) Checkpoint, announced U.S. Attorney Ryan K. Patrick.
Cody Michael Matousek, 33, of Texas City, and Guadalupe Levario, 38, of Galveston, admitted they conspired to transport illegal aliens on March 27, 2019. Law enforcement has identified Matousek as an affiliate of the Aryan Brotherhood.
On Feb. 6, 2019, a tow truck driver reported that he had been hired to haul a broken down Ford 500 through the checkpoint from Armstrong to an auto parts store in Kingsville. When picking up the vehicle on the shoulder of Highway 77, the tow truck driver observed a tan medium-sized SUV parked behind the Ford 500. At the checkpoint, the driver told agents he felt suspicious about the vehicle he was hauling because the driver refused to provide the keys.
During the inspection, a BP K-9 alerted to the trunk of the Ford 500. Upon opening the trunk, agents observed two individuals from Brazil who admitted to being illegally present in the United States.
Law enforcement had the driver drop off the Ford 500 in Kingsville to the individual who hired him.
Authorities conducted surveillance at the auto parts store in Kingsville and observed the tan medium-sized SUV. Levario exited the SUV and directed where the truck was to be parked. He then paid the driver, at which time he was placed under arrest. Also taken into custody was Matousek, who was driving the SUV.
Matousek had been the subject of an investigation involved with a human smuggling organization affiliated with the Aryan Brotherhood of Texas (ABT) out of Galveston.
Located inside the SUV, authorities discovered numerous iPhones, a backpack and jackets which the undocumented aliens later identified as their property.
The two Brazilians claimed Matousek picked them up somewhere near Mission and transported them to a stash house. The next day, Matousek picked them up and brought them to a motel where he explained the process for them to be smuggled past the checkpoint. There, they also met Levario who told them he would be the one smuggling them past the checkpoint.
The next morning, Levario transported them in a Ford 500. He stopped at an abandoned house south of the checkpoint and put both Brazilians in the trunk of the Ford 500.
Sentencing has been set for July 3, 2019, before U.S. District Judge Nelva Gonzales Ramos. At that time, Matousek and Levario face up to 10 years imprisonment and a $250,000 maximum possible fine.
Matousek will remain in custody, while Levario was permitted to remain on bond pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations, BP, U.S. Marshals Service and the Kingsville Police Department all assisted in the joint investigation. Assistant U.S. Attorney Sara Popejoy is prosecuting the case.
A New York man sentenced for firearms conspiracy and drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Amanze Antoine, of Mt. Vernon, New York, was sentenced today to 120 months incarceration for illegal firearms sales and cocaine distribution, United States Attorney Bill Powell announced.
After a three-day trial in December 2018, a federal jury found Antoine, age 38, guilty of one count of “Conspiracy to Violate Federal Firearms Laws” one count of “Conspiracy to Distribute Cocaine Base,” and one count of “Unlawful Possession of a Firearm.” Antoine recruited a group of individuals in Morgantown, West Virginia and elsewhere to create false documentation to purchase firearms, transported and sold the illegally obtained firearms from West Virginia to New York. He also distributed cocaine in Morgantown in May 2017. Antoine was previously convicted of two crimes in New York, prohibiting him from possessing a firearm.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
26 March 2019
White House announces Presidential Task Force on Protecting Native American Children in the Indian Health Service SystemRead the Press Release
WASHINGTON—President Donald J. Trump today announced the formation of a Presidential Task Force on Protecting Native American Children in the Indian Health Service System.
The task force will examine any systemic problems that may have led to failures of the IHS to protect Native American children. The task force will develop recommended policies, protocols and best practices to protect Native American children and prevent abuse.
“I welcome the creation of this task force. Keeping Native American children safe is a critical government function,” U.S. Attorney Kurt Alme said. “I also hope that our office’s prosecution of Dr. Stanley Weber, a former IHS pediatrician who practiced on the Blackfeet Indian Reservation in Browning, sends a strong message that those who sexually abuse children will be held accountable and that we will seek justice for victims,” Alme said.
Weber was convicted at trial of aggravated sex abuse of a child, attempted aggravated sex abuse of a child and abusive sexual contact of a minor. He was sentenced in January to 220 months in prison. Weber is appealing.
Blackfeet Nation Chairman Timothy F. Davis said, “This task force is charged with a monumental task. It is imperative and crucial all children be protected from assault. Therefore, it is with much anticipation and excitement we look forward to the work the task force will undertake to not only develop policies, protocols and best practices that will insure the safety of our children now and in the future, but also I am especially delighted to learn of the appointment of pediatrician Dr. Caitlin Hall, MD, FAAP, as a subject matter expert with whom I had the privilege of working with at Blackfeet Community Hospital.
“As a tribal leader, and being personally familiar with the crime committed on our Blackfeet Nation, I wholeheartedly welcome this opportunity to interact with the White House Task Force to provide input on addressing and finding solutions to this systemic problem that must be eradicated and as promised, never ever occur again anywhere,” Chairman Davis said.
This task force’s focus is separate and distinguishable from other investigations into the Indian health system. Specifically, the work of the task force will not interfere with: (1) the criminal investigation of one particular pediatrician; (2) a review underway at the Department of Health and Human Services (HHS), including a review by the Department’s Inspector General, which HHS Secretary Azar ordered earlier this year; or (3) a review conducted by an outside, independent contractor retained by the Indian health system.
The task force will be comprised of subject-matter experts from several United States Government agencies, and co-chaired by Joseph Grogan, Assistant to the President of Domestic Policy, and U.S. Attorney Trent Shores, for the Northern District of Oklahoma, and citizen of the Choctaw Nation. The task force will also draw on the expertise of other federal employees and resources and seek perspective an input from tribal leaders and Native American voices.
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White House Announces the Presidential Task Force on Protecting Native American Children in the Indian Health Service SystemRead the Press Release
Today, President Donald J. Trump announced the formation of a Presidential Task Force on Protecting Native American Children in the Indian Health Service System (Task Force). He charged the Task Force with investigating the institutional and systemic breakdown that failed to prevent a predatory pediatrician from sexually assaulting children while acting in his capacity as a doctor in the Indian Health Service. The pediatrician left the agency in 2016 and is now in Federal prison.
This Task Force’s focus is separate and distinguishable from other investigations into the Indian health system. Specifically, the work of the Task Force will not interfere with: (1) the criminal investigation of one particular pediatrician; (2) a review underway at the Department of Health and Human Services (HHS), including a review by the Department’s Inspector General, which HHS Secretary Azar ordered earlier this year; or (3) a review conducted by an outside, independent contractor retained by the Indian health system.
The Task Force will examine any systemic problems that may have failed to prevent this doctor’s actions and led to any failures of the Indian Health Service to protect Native American children. The Task Force will develop recommended policies, protocols, and best practices to protect Native American children and prevent such abuse from ever happening again.
The Task Force will be comprised of subject-matter experts from several United States Government agencies, and co-chaired by Joseph Grogan, Assistant to the President for Domestic Policy, and the Honorable Trent Shores, United States Attorney for the Northern District of Oklahoma and citizen of the Choctaw Nation. The Task Force will also draw on the expertise of other Federal employees and resources and seek perspective and input from tribal leaders and Native American voices.“We applaud the formation of this Task Force which furthers our commitment to protect Native American children in North Dakota from predatory offenders. We are confident the Task Force will identify the changes that are necessary to promote accountability and ensure that our most vulnerable citizens are protected,” said Christopher C. Myers, United States Attorney for the District of North Dakota.
Members of the Presidential Task Force on Protecting Native American Children in the Indian Health Service System:
Joseph Grogan, Assistant to the President for Domestic Policy, Co-Chair
United States Attorney Trent Shores, Co-Chair
Bo Leach, Assistant Special Agent in Charge, Bureau of Indian Affairs, Office of Justice Services
Stephanie Knapp, MSW, LCSW, Child/Adolescent Forensic Interviewer, Federal Bureau of Investigation’s Office for Victims Assistance, Child Victim Services Unit
Shannon Bears Cozzoni, Tribal Liaison and Assistant United States Attorney, United States Attorney’s Office for the Northern District of Oklahoma
Caitlin A. Hall, MD, FAAP, Clinical Director/Pediatrician, Dzilth-na-o-dith-hle Health Center, Indian Health Service
Farnoosh Faezi-Marian, Program Examiner, Office of Management and Budget
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Upshur County man sentenced for his role in a firearms conspiracyRead the Press Release
ELKINS, WEST VIRGINIA – Michael Lough, of Buckhannon, West Virginia, was sentenced today to 60 months incarceration for his role in a firearms theft and sale scheme, United States Attorney Bill Powell announced.
Lough, age 34, pled guilty to one count of “Possession of Stolen Firearm - Aiding and Abetting,” and one count of “Unlawful Possession of Firearm” in January 2018. Lough, being a person prohibited from possessing a firearm, admitted to receiving, possessing, bartering or selling 21 firearms in Upshur County in October 2016.
Lough was also ordered to pay $54,000 in restitution.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives; The Mountain Region Drug & Violent Crime Task Force; the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Upshur County Sheriff’s Office; the Lewis County Sheriff’s Office; the Buckhannon Police Department; and the Weston Police Department investigated.
U.S. District Judge John Preston Bailey presided.U.S. Attorney’s Office and Justice Department Close Religious Land Use Investigation of the City of Pryor Creek Following Zoning Code RevisionsRead the Press Release
U.S. Attorney Trent Shores announced today that due to recent amendments made to the City of Pryor Creek’s zoning code, the Justice Department will close its investigation into whether the city violated the Religious Land Use and Institutionalized Person’s Act of 2000 (RLUIPA) when it rejected Cornerstone Truth of God’s efforts to obtain a special use permit to operate a church there. RLUIPA is a civil rights law that protects against religious discrimination.
The Pryor Creek City Council published the ordinance on March 25. The Justice Department will officially close the investigation in 30 days, when the zoning ordinance takes effect.
“Religious institutions of all faiths should be free from discriminatory zoning actions and ordinances that restrict their ability to expand or establish places of worship. I will work to ensure that is the case in northeastern Oklahoma,” said U.S. Attorney Shores. “In this instance, I appreciate Pryor Creek’s cooperation and willingness to find workable solutions that ensured the protection of the religious rights of the Cornerstone Truth of God Church. When city leaders were made aware that they had violated RLUIPA, they accommodated the church and examined what changes needed to be made to their zoning laws.”
In July 2017, the U.S. Attorney’s Office for the Northern District of Oklahoma, in partnership with the Department of Justice, opened an investigation into Pryor Creek’s zoning laws and whether the city discriminated against the Cornerstone Truth of God Church’s efforts to obtain a special use permit. The investigation centered on how zoning laws treated religious areas of assembly differently compared to secular areas of assembly. Religious groups in America have the constitutional right to use land for religious exercise, free from discriminatory restrictions, and to be treated on equal terms with secular groups.
Shortly after the investigation was opened, the City granted a special use permit to the church. The City also began revising its zoning code so that it treated secular and religious areas of assembly the same. On March 19, the City Council approved revisions to its zoning code, which put secular and religious areas of assembly on equal footing.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. Last year, the Justice Department announced its Place to Worship Initiative, which focusses on RLUIPA’s provisions that protect the rights of religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office for the Northern District of Oklahoma at (918) 382-2700 and ask for Civil Division Assistant U.S. Attorney Marianne Hardcastle. You can also contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or on the complaint portal on the Place to Worship Initiative website.
U.S. Attorney Shores Appointed Co-Chair of Presidential Task Force on Protecting Native American Children in the Indian Health Service SystemRead the Press Release
President Donald J. Trump today appointed Trent Shores, United States Attorney for the Northern District of Oklahoma, as a co-chair of a Presidential Task Force formed to address the institutional and systemic breakdown that failed to prevent a predatory pediatrician from sexually assaulting Native American children for years while employed by the Indian Health Service. U.S. Attorney Shores will partner with Joseph Grogan, Assistant to the President for Domestic Policy, to lead the Task Force.
The President announced the formation of a Presidential Task Force on Protecting Native American children in the Indian Health Service System today to examine any systemic problems that may have failed to prevent this doctor’s actions and led to any failures of the Indian Health Service to protect Native American Children. The Task Force will develop recommended policies, protocols, and best practices to protect Native American children and prevent such abuse from ever happening again.
“I appreciate the confidence placed in me by President Trump to help lead this Task Force. We have the opportunity to do good work for a righteous cause. Protecting Native American children who enter the Indian Health Service system is a common sense mission. It’s also one which this Task Force will approach with a great sense of purpose and urgency. I’m thankful for President Trump’s focus on this issue and commitment to finding solutions to prevent these atrocities from happening again. This is about doing the right thing.”
Cherokee Nation Principal Chief Bill John Baker voiced his support for the appointment, “Trent Shores, the United States Attorney for the Northern District of Oklahoma, has a history of working to protect Indian children in Oklahoma and I have confidence in his ability to make safety recommendations as part of this new designated task force.”
Chickasaw Nation Governor Bill Anoatubby stated, “It is heartbreaking and unconscionable that an IHS pediatrician was allowed to prey upon Indian children. We commend and support the Administration and the Department of Justice for initiating this important review of IHS practices so that all proper measures are taken to ensure the protection and safety of all children.”
The Task Force will be comprised of subject-matter experts from several United States Government agencies, and co-chaired by Assistant to the President for Domestic Policy Joseph Grogan and U.S. Attorney Shores, a citizen of the Choctaw Nation. In addition to U.S. Attorney Shores, the Task Force will include two other Oklahomans, Shannon Bears Cozzoni and Bo Leach. Ms. Cozzoni is an Assistant United States Attorney and Tribal Liaison in the Northern District of Oklahoma where she regularly works with tribes to address justice-related issues. Ms. Cozzoni previously served as the First Assistant Attorney General at the Muscogee (Creek) Nation and brings a wealth of experience to the Task Force. Bo Leach is the Assistant Special Agent in Charge of the Oklahoma City Division of the Bureau of Indian Affairs Office of Justice Services. ASAC Leach is a skilled criminal investigator with vast experience in law enforcement Indian Country, including investigating child sexual abuse. He is also a member of the Choctaw Nation.
The Task Force will draw on the expertise of other Federal employees and resources and seek perspective and input from tribal leaders and Native American voices. However, the work of the Task Force will not interfere with: (1) the criminal investigation of one particular pediatrician; (2) a review underway at the Department of Health and Human Services (HHS), including a review by the Department’s Inspector General, which HHS Secretary Azar ordered earlier this year; or (3) a review conducted by an outside, independent contractor retained by the Indian health system.
Members of the Presidential Task Force on Protecting Native American Children in the Indian Health Service System:
Joseph Grogan, Assistant to the President for Domestic Policy, Co-Chair
United States Attorney Trent Shores, Co-Chair
Bo Leach, Assistant Special Agent in Charge, Bureau of Indian Affairs, Office of Justice Services
Stephanie Knapp, MSW, LCSW, Child/Adolescent Forensic Interviewer, Federal Bureau of Investigation’s Office for Victims Assistance, Child Victim Services Unit
Shannon Bears Cozzoni, Tribal Liaison and Assistant United States Attorney, United States Attorney’s Office for the Northern District of Oklahoma
Caitlin A. Hall, MD, FAAP, Clinical Director/Pediatrician, Dzilth-na-o-dith-hle Health Center, Indian Health Service
Farnoosh Faezi-Marian, Program Examiner, Office of Management and Budget
Two Pittsburgh Women Charged in Series of Bank Robberies across Allegheny CountyRead the Press Release
PITTSBURGH, PA – Two residents of Pittsburgh, Pennsylvania have been indicted by a federal grand jury in Pittsburgh on charges related to a series of bank robberies that occurred in West Mifflin, McCandless, Penn Hills and Bloomfield, United States Attorney Scott W. Brady announced today.
The five-count Superseding Indictment names Jasmine Parrish, 29, and Donna Poremski, 43, who had worked together in the home healthcare industry, as defendants.
According to the Superseding Indictment, Parrish and Poremski conspired to rob four (4) different PNC bank locations from January 2018, through November 21, 2018. The PNC banks are located at 452 Clairton Boulevard, 9805 McKnight Road, 206 Rodi Road, and 4761 Liberty Avenue. As alleged, during two of the bank robberies – in West Mifflin and McCandless – the women, who were dressed in disguises, displayed a handgun and forced the employees into the vault. As to the November 21, 2018 attempted bank robbery, in Bloomfield, Parrish is alleged to have worked at the bank prior to the bank robbery and waited in a car while another person attempted to rob the bank.
A total of $97,004.00 was taken from the West Mifflin, McCandless and Penn Hills PNC banks, during these robberies.
As to each of the armed bank robbery counts, the law provides for a maximum total sentence of not more than 25 years in prison, a fine of not more than $250,000, or both. As to each of the unarmed bank robbery counts, the law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Additionally, the law provides for a minimum sentence of not less than five years in prison and up to life, a fine of $250,000, or both, for the conspiracy offense. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, West Mifflin Borough Police Department, the McCandless Police Department, the Penn Hills Police Department and the City of Pittsburgh Police Department conducted the investigation leading to the Superseding Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Lake Charles felons sentenced for unlawful possession of firearmsRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that two Lake Charles felons were sentenced yesterday by U.S. District Judge Donald E. Walter for illegal possession of a firearm.
Lake Charles felon sentenced to 48 months in prison for possessing handgun
Keelan Broussard, 27, of Lake Charles, was sentenced to four years in prison for possessing a handgun. The Calcasieu Combined Anti-Drug Task Force executed a search warrant on May 23, 2018 at Broussard’s home, and found a Taurus .38 Special handgun, ammunition, approximately $2,400 in cash, marijuana and cocaine in Broussard’s bedroom. Broussard is a felon who has been convicted of drug and firearms related charges. Under federal law, convicted felons are not allowed to possess a firearm or ammunition. Broussard admitted that he owned the firearm at his guilty plea in federal court on December 14, 2018.
The ATF and the Calcasieu Combined Anti-drug Task Force conducted the investigation. Assistant U.S. Attorney Dominic Rossetti prosecuted the case.
Lake Charles felon sentenced to 30 months in prison for unlawfully possessing a rifle
Forrest Cecil Coker II, 33, of Lake Charles, was sentenced to 30 months in prison for unlawfully possessing a stolen rifle. Calcasieu Parish Sheriff’s deputies arrived on April 21, 2018 at a home on Laurel Avenue in Calcasieu Parish searching for an individual with pending felony warrants. When officers approached the home, Coker came out to meet them, and stated he needed to step back inside the residence to subdue an aggressive dog. Upon his return, officers received permission to enter and search the residence. During the search, they found a DPMS Model AR-10, .308-caliber rifle that was reported stolen, a small amount of suspected methamphetamine, four suspected Alprazolam pills and two suspected Citalopram pills, along with marijuana pipes, a methamphetamine pipe, marijuana grinders and an electric scale.
Under federal law, Coker is not allowed to possess a firearm or ammunition as a convicted felon. Coker was previously convicted on four separate occasions in the State of Louisiana's 14th Judicial District Court for simple burglary and illegal use of a weapon. He pleaded guilty in federal court on December 17, 2018.
The ATF and the Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Daniel J. McCoy prosecuted the case.
Both cases were prosecuted under the Project Safe Neighborhoods (PSN) program, which is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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 reductions in crime.
Two Charged with Conspiring to Possess and Possessing 5 Kilos or More of CocaineRead the Press Release
PITTSBURGH, PA – A Pennsylvania man and a Texas man have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The two-count Indictment named the defendants as Eric Timbers, 42, formerly of Pittsburgh, PA, and Lino Espinoza, 44, formerly of Houston, Texas.
According to the Indictment, from June 2017 to March 21, 2019, Timbers and Espinoza conspired to possess with intent distribute and to distribute five kilograms or more of cocaine. Both defendants are also charged with possession with intent to distribute five kilograms or more of cocaine on March 21, 2019.
The law provides for a minimum total sentence of not less than 10 years and a maximum of life in prison, a fine of not more than $20,000,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian M. Czarnecki and Senior Deputy Attorney General Katherine Wymard of the Pennsylvania Attorney General Office’s Organized Crime Section are prosecuting this case on behalf of the government.
The Pennsylvania Attorney General’s Office with the assistance of the City of Pittsburgh Bureau of Police and the Drug Enforcement Administration conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Baltimore Drug Traffickers Sentenced to over 9 ½ Years in Federal PrisonRead the Press Release
Baltimore, Maryland – On March 25, 2019, Chief U.S. District Judge James K. Bredar sentenced James Hair, a/k/a “Mook,” age 28, of Baltimore, Maryland, to 117 months in federal prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute at least two kilograms of cocaine.
In another case yesterday, U.S. District Judge Ellen L. Hollander sentenced Stancil McNair, age 22, of Baltimore, Maryland to 10 years in federal prison, followed by five years of supervised release, for conspiracy to distribute heroin, powder cocaine, crack cocaine, and fentanyl.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration – Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“Drug traffickers must know that gun crime will lead to federal time, which has no parole - ever,” said United States Attorney Robert K. Hur. “We will continue to work with our law enforcement partners to remove those who would commit violence from our community.”
According to Hair’s guilty plea, between late 2016 and early 2017, Hair was captured on federal wiretaps discussing drug trafficking with a heroin distributor, who was also a member of the Black Guerilla Family (BGF) gang. On February 5, 2017, the FBI seized a cell phone belonging to an associate of Hair’s. The phone contained text messages in which Hair and his associate discussed a plan to rob and kill Hair’s cocaine supplier. Also on February 5, 2017, Hair was heard on a recorded jail call telling an inmate that he had provided a firearm to a mutual friend of theirs because the friend had gotten into a fight with someone. In early to mid-March 2017, Hair was intercepted on several calls discussing getting revenge for the murder of one of his friends, and retrieving several firearms that the murdered friend had been keeping. Hair admitted that he knew that the conspiracy distributed between two kilograms and 3.5 kilograms of cocaine.
According to McNair’s plea agreement, from at least May 2017 through September 19, 2017, McNair was a manager in a drug trafficking organization (DTO) that operated in and around 1100 North Montford Avenue in Baltimore, distributing heroin, fentanyl, and powder and crack cocaine. As one of the managers, McNair was responsible for managing a portion of the daily supply of narcotics for the organization by providing bags of heroin to other street-level distributors drug shops operated by the DTO and taking custody of the drug proceeds from the distributors. Between May 5 and July 12, 2017, McNair also sold a total of 115 vials of crack cocaine, 21 bags of crack cocaine, and 70 gel caps of heroin to an undercover ATF special agent. McNair also possessed a firearm throughout the time of the conspiracy, to serve as protection against rivals who would try to steal drugs, drug proceeds, or drug territory. On September 8, 2017, a co-conspirator called McNair and told him to bring the co-conspirator a pistol. McNair immediately took his pistol to the co-conspirator to use. The co-conspirator subsequently returned the gun to McNair. On September 18, 2017, ATF agents watched McNair leave his house to go the drug shop and saw McNair reach for his waistband and grab at an object they believed to a gun. McNair was arrested and agents recovered a loaded 9mm pistol from McNair.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI and the Baltimore Police Department for their work in the Hair case and thanked Assistant U.S. Attorneys Christina A. Hoffman and Peter J. Martinez, who prosecuted the case. U.S. Attorney Hur commended the ATF, the DEA, and the Baltimore Police Department for their work in the McNair case. Mr. Hur thanked Assistant U.S. Attorney Matthew DellaBetta and Michael C. Hanlon, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Tucker County man sentenced for methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Michael Brooks Ketterman, of Hambleton, West Virginia, was sentenced today to 60 months incarceration for distributing methamphetamine, United States Attorney Bill Powell announced.
Ketterman, age 31, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in October 2018. Ketterman admitted to possessing more than five grams of methamphetamine, also known as “Ice,” in Randolph County in September 2017.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force and the Elkins Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Timber Lake Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Timber Lake, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on March 26, 2019, by U.S. District Judge Roberto A. Lange.
Chad Holzer, age 40, was sentenced to 24 months in federal prison, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Holzer was indicted by a federal grand jury on November 14, 2018. He pled guilty on January 3, 2019.
The conviction stemmed from an incident on September 23, 2018, when Holzer was attempting to enter an individual’s home with a hatchet. The owner of the home heard pounding at the front door and opened it. At that time, Holzer entered the residence and a physical altercation ensued. During the fight, Holzer held up the hatchet and swung it at one of the individuals, causing a laceration and swelling to their hand.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Holzer was immediately turned over to the custody of the U.S. Marshals Service.
Three sentenced for smuggling cocaine in children’s toys and laundering drug money through car rental businessRead the Press Release
ATLANTA – Marlon Matthew Pittman, the last of three defendants operating a cocaine smuggling and money-laundering ring, has been sentenced to federal prison. The men routinely shipped their drugs from Puerto Rico to Atlanta through the U.S. Mail hidden inside children’s toys and cans of powdered milk, and laundered their drug money using a car rental company and an elaborate scheme involving hundreds of money orders. All three men had prior federal drug trafficking convictions. Pittman attempted to flee the country while awaiting trial but was arrested trying to board a flight to Ethiopia using a fake identity.
“These drug smugglers endangered countless people from Puerto Rico to Atlanta and beyond,” said U.S. Attorney Byung J. “BJay” Pak. “Ironically, it was the money laundering scheme they created to hide their criminal enterprise that first caught the attention of investigators and led to their downfall. Criminals regularly believe they have developed a new way to evade detection. However, sophisticated abilities developed by our law enforcement partners help identify the crooks, leading to a successful prosecution like this one.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division commented, “Drug distribution networks often take extreme measures in order to hide the poison they peddle, as was the case in this investigation. This is a perfect illustration of the battle DEA and its law enforcement counterparts face when trying to prevent dangerous drugs from hitting the streets of our communities. As a result of DEA’s unwavering commitment and through the strength of its partnerships, these defendants will spend well-deserved time in prison.”
“This sentencing brings to close a lengthy investigation into a complex money laundering scheme in which defendants illegally funneled narcotic proceeds in an effort to avoid detection by law enforcement. By following the money trail, Postal Inspectors were able to identify transactions that were utilized in furtherance of their drug smuggling operation,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “The Postal Inspection Service is committed to working with our law enforcement partners to investigate and seek the prosecution of those who attempt to conceal and launder illicit proceeds.”
According to U.S. Attorney Pak, the charges, and other information presented in court: This multi-agency investigation began when federal agents noticed suspicious financial activity by an Atlanta-based car rental business and an unusual pattern of money order purchases dating back to 2012. Realizing the activity was money laundering, they began a series of federally authorized wiretaps on cellular phones used by the owner of the car rental business—Marlon Pittman—and members of his drug trafficking operation (“DTO”) in Atlanta and Puerto Rico.
The general scheme of the DTO was that Vladimir Collozo-Florido imported loads of more than 200 kilograms of cocaine at a time into Puerto Rico using cargo ships from Colombia. He then sent the cocaine through the U.S. Mail to Pittman in Atlanta, usually in parcels containing up to 1.5 kilograms at a time. In order to avoid detection, if the parcels were inspected, the cocaine was hidden inside seemingly innocent items such as children’s toys, cans of powdered milk, or cans of beans. Carlos Gonzalez-Catala was responsible for packaging the drugs using a can sealing machine and other disguising materials, and then mailing the packages. Pittman used a number of associates in Atlanta to receive the parcels on his behalf using fake names, and he would sell the cocaine to customers in Atlanta, South Carolina, Maryland, and New York.
Pittman initially transferred the proceeds of the drug sales back to Puerto Rico by carrying large quantities of cash – including one instance of $90,000 in a duffle bag – as carryon luggage on commercial flights. But to conceal the scheme and deal with increased amounts of cash, he set up a car rental business and funneled the money through the business’s bank accounts. He also purchased money orders in small increments, visiting multiple post offices on the same day, in an effort to avoid detection. He then mailed the money orders to Puerto Rico, where they were cashed by a network of associates.
Collazo-Florido and Gonzalez-Catala pleaded guilty first, with Collazo-Florido ordered to forfeit $1,000,000 as part of his sentence. While Pittman was awaiting trial, he was actually planning to flee the country. He was ultimately caught as he was passing through a TSA checkpoint at an airport to board a flight overseas, using an international travel document in a fake name he obtained by bribing foreign government officials. He also had in his possession eleven pounds of MDMA tablets hidden inside children’s Flinstones vitamins bottles. Upon searching his cell phone, agents realized Pittman had been on a crime spree on his way out of the country, trying to obtain money to take with him through fraudulent loans and fraudulent tax refunds, and also emptying his family’s food stamps account.
Members of the operation who have been sentenced by U.S. District Judge Amy Totenberg are:
- Marlon Matthew Pittman, 45, of Mableton, Georgia, was sentenced to 17 years in prison, to be followed by eight years of supervised release, and ordered to forfeit the residence he purchased with drug money. Pittman pleaded guilty to conspiracy to possess with the intent to distribute cocaine and conspiracy to commit money laundering on August 27, 2018.
- Vladimir Collazo-Florido, 44, of Carolina, Puerto Rico, was sentenced to 11 years and four months in prison, to be followed by eight years of supervised release, and ordered to forfeit $1,000,000. Collazo-Florido pleaded guilty to conspiracy to possess with the intent to distribute cocaine on November 13, 2017, and was sentenced on March 8, 2018.
- Carlos Gonzalez-Catala, 42, of Guaynabo, Puerto Rico, was sentenced to three years and three months in prison, to be followed by three years of supervised release. Gonzalez-Catala pleaded guilty to conspiracy to possess with intent to distribute cocaine on November 13, 2017, and was sentenced on February 8, 2018.
This case was investigated by the Drug Enforcement Administration and U.S. Postal Inspection Service.
Assistant U.S. Attorney Garrett L. Bradford, Deputy Chief, Narcotics and Dangerous Drugs Section, prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Stonewall Man Sentenced to 87 Months for Possession of Firearms, SilencerRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Carl Martin Ross, Jr., age 53, of Stonewall, Oklahoma, was sentenced to 87 months imprisonment and 3 years of supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2); and for Possession Of Unregistered Silencer, in violation of Title 26, United States Code, Sections 5861(d), 5841, 5845(a) and 5871. Ross was found guilty after a non-jury trial on August 28, 2018. The verdict and sentence was the result of an investigation by the Pontotoc County Sherriff’s Office, the Pushmataha County Sherriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged and evidence at trial proved that on or about October 7, 2017 the defendant, who had been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed numerous firearms that had been shipped and transported in interstate commerce. Evidence also proved the allegations of the second count of the Indictment, that the defendant knowingly possessed a silencer, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
United States Attorney Brian J. Kuester said, “This office and our federal law enforcement partners are committed to working with local law enforcement agencies in their efforts to make communities in the Eastern District safer. This verdict is a result of that commitment and the cooperative work of numerous agencies.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Stockton Man Pleads Guilty to Unemployment Benefits Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — John Michael “Mike” Herron II, 36, of Stockton, pleaded guilty today to mail fraud and aggravated identify theft in connection with an unemployment benefits fraud and identity theft scheme, U.S. Attorney McGregor W. Scott announced.
According to court documents, from at least December 2014 through January 2018, Herron participated in a scheme to defraud the State of California Employment Development Department (EDD) by filing fraudulent claims for unemployment insurance benefits. In furtherance of this scheme, Herron and his co-defendant, Robert Maher, formerly of Stockton, created fictitious companies and fictitious employees (by using the real identities of persons with and without their knowledge), and filed claims with EDD, falsely stating that the employees had been laid-off or fired. The unemployment benefits were deposited onto debit cards that were mailed to addresses controlled by Herron, Maher, or their associates. In at least one instance, ATM cameras captured Herron withdrawing unemployment benefit funds using a debit card registered to an identity theft victim. Herron was connected to approximately $578,185 in fraudulent claims to EDD, of which approximately $485,685 was paid out by EDD.
This case is the product of an investigation by the U.S. Department of Labor Office of Inspector General, the Federal Bureau of Investigation, and the California Employment Development Department’s Investigation Division. Assistant U.S. Attorneys Amy Schuller Hitchcock and Shelley D. Weger are prosecuting the case.
The charges against Maher are pending. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Herron is scheduled to be sentenced by U.S. District Judge John A. Mendez on July 2. Herron faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for the mail fraud count, and a mandatory two-year consecutive sentence and $250,000 fine for the aggravated identity theft count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Staten Island Man Indicted for Defrauding Investors Trading in Virtual CurrencyRead the Press Release
A nine-count indictment was unsealed today in federal court in Brooklyn charging Patrick McDonnell, also known as “Jason Flack,” with wire fraud in connection with a scheme to defraud investors in virtual currency. McDonnell was arrested earlier today, and is scheduled to be arraigned this afternoon before United States Magistrate Judge Sanket J. Bulsara.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the charges.
“As alleged, the defendant defrauded investors by making false promises and sending them fraudulent balance statements, hiding the fact that he was stealing their money for his personal use,” stated United States Attorney Donoghue. “The defendant’s fraud ends now, he will be held responsible for his criminal conduct.” Mr. Donoghue expressed his grateful appreciation to the United States Commodity Futures Trading Commission (CFTC) for its significant cooperation and assistance in this case.
“The defendant, Patrick K. McDonnell, used smoke and mirrors to allegedly dupe investors into paying his company—CabbageTech, for advice and strategies on crypto-currency trading,” stated USPIS Special Agent-in-Charge Bartlett. “However, Postal Inspectors and their federal law enforcement partners unmasked McDonnell and his scheme to defraud investors, and brought him to justice for his alleged criminal actions.”
As alleged in the indictment, between approximately November 2014 and January 2018, McDonnell portrayed himself as an experienced trader in virtual currency, promising customers he would provide trading advice, and purchase and trade virtual currency on their behalf. Beginning in approximately May 2016, McDonnell made similar representations through his Staten Island-based company, CabbageTech, Corp., also known as Coin Drop Markets. However, neither McDonnell nor CabbageTech provided investment services. Instead, McDonnell sent investors false balance statements purportedly showing that their investments had been profitable, and stole their money for his personal use. When investors requested refunds, McDonnell initially offered excuses for delays in repayment, and eventually stopped responding at all. In total, McDonnell defrauded at least 10 victims of at least $194,000 in U.S. currency, 4.41 Bitcoin, 206 Litecoin, 620 Ethereum Classic and 1,342,634 Verge currency.The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, McDonnell faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Hiral D. Mehta is in charge of the prosecution.
The Defendant:
PATRICK MCDONNELL (also known as “Jason Flack”)
Age: 46
Staten Island, New YorkE.D.N.Y. Docket No. 19-CR-148 (NGG)
South Sioux City Man Sentenced in Methamphetamine ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a South Sioux City, Nebraska, man convicted of conspiring to distribute over 500 grams of methamphetamine was sentenced on March 19, 2019, by U.S. District Judge Karen E. Schreier.
Jose Valentin Carrillo, age 35, was sentenced to 51 months in federal prison, to be followed by 5 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Carrillo was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on January 9, 2018. He pled guilty to the offense on December 10, 2018.
Carrillo was responsible for setting up the sale of one kilogram of methamphetamine between one of his co-conspirators and a confidential informant working with law enforcement. He received $500 from the co-conspirator for brokering the sale.
This case was investigated by the Department of Homeland Security, Drug Enforcement Administration, South Dakota Division of Criminal Investigation, the police departments of Sioux City, Iowa, Madison, South Dakota, and Brookings, South Dakota, and the Brookings County Sheriff’s Office. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Carrillo was immediately turned over to the custody of the U.S. Marshals Service.
South Bay Doctor Pleads Guilty to Unlawfully Distributing Hydrocodone and Committing Health Care FraudRead the Press Release
SAN JOSE – South Bay doctor Venkat Aachi pleaded guilty to distributing hydrocodone outside the scope of his professional practice and without a legitimate medical need, and to health care fraud, announced United States Attorney David L. Anderson, Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Special Agent in Charge Steven J. Ryan, and the California Department of Justice Bureau of Medi-Cal Fraud and Elder Abuse (BMFEA). The guilty plea was accepted by the Honorable Edward J. Davila, U.S. District Judge.
According to the plea agreement, Aachi, 52, of Saratoga, was a licensed physician in the state of California who operated a pain clinic in San Jose. He maintained a DEA registration number authorizing him to prescribe controlled substances. Aachi admitted that from September 18, 2017, through July 2, 2018, he wrote hydrocodone-acetaminophen prescriptions that were outside the scope of his professional practice and not for a legitimate medical purpose. The plea agreement describes transactions in which Aachi improperly distributed hydrocodone. For example, in November of 2017, he wrote a prescription enabling a patient to receive 90 hydrocodone-acetaminophen pills. Aachi did not conduct a physical examination of the patient nor discuss the patient’s pain or response to prior medication. Aachi acknowledged that he knew the prescriptions were not for a legitimate medical purpose and that he did not write the prescriptions in the usual course of his professional practice.
Further, Aachi admitted that on July 2, 2018, he falsely submitted to an insurance company a false and fraudulent claim for payment for healthcare benefits, items, and services. Aachi admitted he acted with the intend to defraud the insurance company.
On October 9, 2018, a federal grand jury indicted Aachi and charged him with six counts of distributing drugs outside the scope of professional practice, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C), and one count of health care fraud, in violation of 18 U.S.C. § 1347. Aachi pleaded guilty to one count under each statute.
Aachi remains free on bail pending sentencing. Judge Davila scheduled Aachi’s sentencing hearing for July 1, 2019.
Aachi faces a maximum sentence of 20 years in prison and a fine of $1,000,000 for the illegal distribution of hydrocodone count and 10 years in prison and a $250,000 fine for the health care fraud count. Additional fines, restitution, and additional periods of supervised release also could be ordered at sentencing. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Shailika Kotiya is prosecuting the case with the assistance of Andy Ding. This prosecution is the result of investigations by the DEA, FBI, HHS-OIG, and the BMFEA. Through the BMFEA, the California Department of Justice regularly works with other law enforcement agencies to investigate and prosecute fraud perpetrated on the Medi Cal program against a wide variety of healthcare providers, including doctors and pharmaceutical companies. This case was investigated and prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Sioux Falls Woman Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, woman convicted of conspiring to distribute 500 grams or more of methamphetamine was sentenced on March 25, 2019, by U.S. District Judge Karen E. Schreier.
Nicole Marie Watson, age 35, was sentenced to 180 months in federal prison, to be followed by 10 years of supervised release. She was also ordered to pay $100 to the Federal Crime Victims Fund.
Watson was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on March 13, 2018. She pled guilty on December 10, 2018.
Watson received approximately eight pounds of methamphetamine from co-conspirators that she distributed in Sioux Falls.
This case was investigated by the Sioux Falls Area Drug Task Force, South Dakota Highway Patrol, South Dakota Division of Criminal Investigation, and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Watson was immediately turned over to the custody of the U.S. Marshals Service.
Sex Trafficker of Minors Sentenced to 32 Years in Federal PrisonRead the Press Release
Jackson, Miss. – Willie Charles Blackmon, Jr., 37, of Jackson, was sentenced today by U.S. District Judge Carlton W. Reeves to serve 384 months in federal prison, followed by a lifetime of supervised release, for sex trafficking of minors, announced United States Attorney Mike Hurst and Federal Bureau of Investigation Special Agent in Charge Christopher Freeze. Blackmon was also ordered to pay a $5,000 fine and register as a sex offender for life.
"Harming, threatening and drugging children to do unspeakable things for money will be swiftly prosecuted by this office and harshly punished in this district. The men and women in law enforcement, as well as our prosecutors and support staff, are to be commended for bringing justice to these victims and accountability to this defendant. I would ask the public to remain vigilant as to these crimes and to promptly report any suspicious activities to law enforcement so that other children never become victims of such heinous acts in the future," said U.S. Attorney Mike Hurst.
"Exploitation of a child for any reason is despicable and has no place in our communities," said FBI Special Agent in Charge Freeze. "The FBI's Child Explotation Task Force will continue to actively pursue anyone who deprives the community of the innocence of children, and fight for justice for their victims."
After a four-day trial in U.S. District Court in Jackson, Blackmon was found guilty on November 30, 2018, of two counts of sex trafficking minors and two counts of promoting a prostitution business.
In July 2014, an investigation began into a prostitution ring in the Jackson area led by Willie Charles Blackmon, Jr. The investigation revealed that Blackmon purchased a runaway minor for $500 and recruited other runaway minors for prostitution. He rented rooms at local hotels in Jackson and Vicksburg for days at a time, where the minors engaged in commercial sex acts with men for money. Blackmon kept most, if not all, of the money earned by the minors from the sex acts. The evidence showed that Blackmon physically harmed the minors, and would threaten them by holding a gun to their heads if they did not perform or if they disrespected him. He also provided drugs to the minors.
The Jackson FBI, Mississippi Attorney General’s Office, FBI New Orleans Violent Crimes Against Children Task Force, Clinton Police Department and Ouachita Parish Sheriff’s Office investigated the prostitution ring which spread throughout Mississippi, Louisiana, Florida and Arkansas. Assistant United States Attorneys Glenda R. Haynes and Keith French prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and 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.
Sallisaw Man Pleads Guilty to Possession of Destructive DeviceRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Randall Doyle McGuire, age 39, of Sallisaw, Oklahoma, entered a guilty plea to Possession Of Unregistered Firearm (Destructive Device-Incendiary Bomb), in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871, punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
The Indictment alleges that on or about July 16, 2018, within the Eastern District of Oklahoma, the defendant, did knowingly possess a destructive device (incendiary bomb), which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
The charges arose from an investigation by the Sallisaw Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Recognizing the WDTN’s First Female AUSA, Devon L. Gosnell, during Women’s History MonthRead the Press Release
Memphis, TN– As we recognize and celebrate Women’s History Month in March, the U.S. Attorney’s Office would like to share and highlight the accomplishments of Ms. Devon L. Gosnell, the first female Assistant United States Attorney (AUSA) to serve in the Western District of Tennessee. Ms. Gosnell was first appointed to serve as an AUSA in 1975 by United States Attorney Thomas F. Turley, Jr. In 1987, she was promoted to the position of Criminal Chief AUSA by United States Attorney W. Hickman Ewing, which was also the first time a woman held this management position in the office. As an Assistant U.S. Attorney, Ms. Gosnell handled both civil and criminal matters. She tried in excess of 100 jury cases, and handled over 40 appeals before the Sixth Circuit Court of Appeals. Ms. Gosnell served for nineteen years as an advocate for the people of the Western District of Tennessee, as a mentor, and as a leader. Because of her many firsts within the Department of Justice, Ms. Gosnell paved the way for so many women in our office. Today the U.S. Attorney’s office consists of 17 women Assistant United States Attorneys, including the current Criminal Chief and OCDETF Chief, thanks to Ms. Gosnell’s willingness to be the first.
Devon L. Gosnell graduated magna cum laude from West Virginia University in 1972 with a bachelor’s in political science. She earned her juris doctorate from West Virginia University in 1975 where she served on law review, the moot court board, and the moot court team. In 1982, she earned her MBA from the University of Memphis, and in 1995, she graduated from Harding University School of Theology with honors. Not only are Ms. Gosnell’s academic accomplishments worthy of recognition, but perhaps most notable are her achievements as a woman.
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R.I. Man Sentenced for Health Care and Welfare Fraud, Misuse of Social Security Numbers, ID Theft, Illegal ReentryRead the Press Release
PROVIDENCE, RI – A Pawtucket man previously deported to his native Dominican Republic after being convicted and incarcerated for trafficking significant quantities of heroin and cocaine was sentenced today to 25 months in federal prison for reentering the United States illegally, and using the identity and Social Security number of another person to fraudulently obtain health care and welfare benefits.
Carlos Jose Portes-Ortiz, 38, a.k.a. Juan Carlos Mendieta Vega, a.k.a. Anthony Clausell Rivera, a.k.a. Jose Jimenez Agosto, a.k.a. Willian Acevedo Gil, a.k.a. Allison Gabriel, pleaded guilty on October 10, 2018, to health care fraud, Supplemental Nutrition Assistance Program (SNAP) fraud, misuse of Social Security numbers, aggravated identity theft, and illegal reentry.
Portes-Ortiz was deported from the United States in February 2009, after completing a federal prison sentence imposed in June 2007 for conspiracy to import 100 grams or more of heroin and 500 grams or more of cocaine. Portes-Ortiz was arrested in June 2005 at Newark Liberty International Airport after arriving from the Dominican Republic.
The sentence imposed today by U.S. District Court Judge John J. McConnell, Jr., is announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Phillip Coyne, Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations Scott E. Antolik, and Special Agent in Charge of the Northeast Region of the United States Department of Agriculture Office of Inspector General Bethanne M. Dinkins.
In March 2017, Portes-Ortiz was arrested in Dedham, Mass., after attempting to purchase more than $1,000 worth of iPhone and iPad equipment using a driver’s license depicting his photograph and a credit card both in the name of a female. At the time of his arrest, Portes-Ortiz was found to be in possession of a Rhode Island Neighborhood Health Plan card, a Rhode Island EBT card for SNAP benefits, a Rhode Island identification card, a Puerto Rican driver’s license and a bank debit card. Some of the cards seized from Portes-Ortiz contained his photograph but all were in the names of others than his own.
It was later determined through fingerprints that the person arrested was actually Portes-Ortiz.
An investigation led by agents from the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations determined that Portes-Ortiz used multiple names and stolen personal identifying information to gain Rhode Island ID cards, as well as the identity of another person to obtain Medicaid and health care benefits, including medical, pharmaceutical and dental services; and EBT cards and SNAP benefits.
The investigation revealed that Portes-Ortiz was employed at a retail store while, at the same time, fraudulently obtaining federal program benefits and services using a stolen identity and identifying information.
At sentencing, Portes-Ortiz was ordered to pay restitution of approximately $13,000.
Portes-Ortiz, has been detained in federal custody since his arrest on June 27, 2018. He faces deportation proceedings upon completion of his term of incarceration.
The case was prosecuted by Assistant U.S. Attorneys Ly T. Chin and Terrence P. Donnelly.
The matter was investigated by agents from the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations; Homeland Security Investigations - Immigration and Custom Enforcement; U.S. Social Security Administration, Office of Inspector General; and U.S. Department of Agriculture, Office of Inspector General.
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Portland Nurse Practioner Sentenced to Four Years in Federal Prison for Illegal Opioid Distribution (Photo)Read the Press Release
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Downloadable file: Cash Found in DeMille Bedroom (1)
Downloadable file: Cash Found in DeMille Bedroom (2)Prosecution marks the first opioid pill mill case in the District of Oregon
PORTLAND, Ore.—Former nurse practitioner Julie Ann DeMille, 60, of Portland, was sentenced today to 48 months in federal prison and three years’ supervised release for illegally distributing prescription opioids, filing a false tax return and lying to federal agents.
“Our nation is drowning in substance abuse. We must wake up to this reality and stop pushing the reckless use of controlled substances. DeMille treated her nursing credentials like a license to deal opioids—a drug dealer masquerading as a medical professional. It’s hard to comprehend that in the midst of the deadliest drug crisis in history, DeMille risked the lives of hundreds to turn a profit,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“Opioid abuse is devastating our communities and we must respond aggressively to stem the flow because every person lost in this crisis is one too many,” said DEA Special Agent in Charge Keith Weis.
“This case is an excellent example of how the financial expertise of IRS-Criminal Investigation employees contributes to the federal law enforcement fabric,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “IRS-Criminal Investigation is committed to serving the U.S. taxpayers and working with our partners to make our communities safer. DeMille has been held accountable for her actions and we will continue to investigate and seek prosecution of individuals who do not report their taxable income, regardless of whether the income is legal or illegal.”
According to court documents, in January 2015, DeMille opened the Fusion Wellness Clinic on Southeast 122nd Avenue in Portland across the street from the Multnomah County Parole and Probation Office. From the clinic’s opening until July 2016, DeMille illegally wrote thousands of prescriptions for opioids including oxycodone and hydrocodone.
As early as 2013, DeMille began planning a move from Houston, Texas to Portland. She was attracted to Oregon where licensed nurse practitioners can write prescriptions without the oversight and approval of a physician. She moved in 2014 and was hired by a publicly funded, county health clinic. From the beginning, DeMille planned to subsidize her county income by operating an illegal opioid pill mill. By the end of 2014, DeMille had registered the “Fusion Wellness” business name and begun searching for clinic locations.
After DeMille’s first clinic opened in January 2015, word spread quickly that the small, cash-only operation was a reliable source for cheap and easy opioid prescriptions. On Friday and Saturday mornings, customers would spill into parking areas outside the clinic and wait in cars for their turn in the cramped office. The clinic quickly outgrew its original location and, in April 2015, was moved to a new location on Northeast 101st Avenue in Portland.
Before long, DeMille’s prescribing habits began attracting the attention of law enforcement and the Oregon State Board of Nursing. Shortly after the clinic opened, three of DeMille’s patients attempted to fill identical prescriptions for 30mg doses of oxycodone together at a local pharmacy. The pharmacist turned the patients away and contacted police. A Gresham police officer later contacted DeMille by phone to discuss the prescriptions and forwarded a copy of the general offense report to the state nursing board. The nursing board opened an investigation into DeMille’s prescribing practices just three weeks after the clinic opened.
In early 2015, the clinic’s patient files included very few records. Knowing her lax prescribing practices and record keeping would not pass investigative scrutiny, DeMille began forging patient signatures on newly created forms. In March 2015, DeMille met with nursing board investigators to discuss the complaint and her prescribing practices. During the course of the interview, she repeatedly lied about the nature of her practice, insisting that the clinic’s patients were treated for simple chronic diseases and a variety of other wellness issues. Ultimately, the nursing board issued a letter of concern to DeMille, but did not pursue disciplinary action.
DeMille quickly altered her practices in response to the nursing board’s investigation in an attempt to avoid further detection. Throughout the remainder of 2015, DeMille continued her work at the county health clinic while operating the clinic just two days a week. In a typical day at the clinic, DeMille saw up to 20 patients, charging each $200 in cash. In 2015, the clinic generated at least $388,000 in revenue, none of which was reported on DeMille’s income tax return. In July 2016, while conducting a federal search warrant, DEA agents found more than $51,000 in cash stored in DeMille’s bedroom.
In 2015 alone, according to data from the Oregon Prescription Drug Monitoring Program, DeMille wrote more than 1,940 prescriptions for controlled substances. Together, these prescriptions resulted in the distribution of more than 219,000 pills, 96.7% of which were opioids.
DeMille pleaded guilty on December 12, 2018 to two counts of illegally distributing a controlled substance and to one count of filing a false tax return and lying to federal agents.
DeMille’s co-conspirator and former Fusion Wellness Clinic manager, Osasuyi “Ken” Idumwonyi, pleaded guilty on February 28, 2017, to conspiring to distribute or dispense and possessing with intent to distribute or dispense the Schedule II controlled substances oxycodone and hydrocodone. He will be sentenced on June 3, 2019.
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service, U.S. Marshals Service and Portland Police Bureau. It was prosecuted by Thomas S. Ratcliffe and Donna Brecker Maddux, Assistant U.S. Attorneys for the District of Oregon.
Drug abuse affects communities across the nation, and opioid abuse continues to be particularly devastating. The CDC reports that from 1999 to 2016, more than 630,000 people have died from a drug overdoses. In 2016, 66% of drug overdose deaths involved an opioid. Drug overdose is now the leading cause of injury or death in the United States. In Oregon, the total number of deaths related to drug use increased 11 percent between from 2013 to 2017, with 546 known drug related deaths in 2017.
If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 8am and 11pm Pacific Time daily.
Pittsburgh Man Sentenced for Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, was sentenced in federal court to three years’ probation on a charge of conspiracy to distribute heroin, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Brent Williams, age 32.
According to information presented to the court, Brent Williams was indicted in connection with a DEA wiretap investigation. The intercepted wiretap communications revealed that Williams and others conspired to possess with intent to distribute and distribute quantities of heroin between January and September 2016.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. United States Attorney Brady commended the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Pittsburgh Bureau of Police, and Pennsylvania State Police for the investigation leading to the successful prosecution of Brent Williams.
Owner of South Bay Law Firm and Office Manager Charged with Committing Large-Scale Immigration Visa FraudRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Danhong “Jean” Chen, a/k/a Maria Sofia Taylor, and her business partner Jianyun “Tony” Ye in connection with an immigration visa fraud scheme, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, Securities and Exchange Commission Office of the Inspector General, Inspector General Carl Hoecker. The 14-count indictment, filed March 7, 2019, and unsealed late yesterday, alleges the defendants committed visa fraud and related crimes to obtain immigration benefits for more than 100 foreign investors through the government’s Employment-Based Immigration Fifth Preference, or “EB-5,” visa program.
According to the indictment, Chen, 54, of Atherton, was the sole partner at the Law Offices of Jean D. Chen, which held itself out as specializing in immigration law. Ye, 51, also of Atherton, was formerly married to Chen and held himself out as the manager of Chen’s law office. The indictment alleges Chen and Ye prepared and submitted to the United States Citizenship and Immigration Services (USCIS) fraudulent documents that contained false signatures and falsely described how applicants would qualify for the EB-5 program.
Under the EB-5 program, foreign nationals may obtain permanent United States residency, commonly known as “green card” status, by investing in qualifying American businesses. Alien investors who comply with program requirements initially receive a grant of conditional permanent residency status for a two-year period. After two years, the alien investor can petition for permanent residency. To obtain permanent residency status, the applicant’s investment must amount to $500,000 if made in certain geographical areas with low employment rates; if the investment is not in a designated low-employment area, the investment must amount to a minimum of $1,000,000. In addition, under the EB-5 program, applicants may make use of “regional centers.” Entrepreneurs seeking investments for American businesses may establish regional centers to promote investment opportunities and make such opportunities available to EB-5 applicants. The regional centers generally promote investment opportunities within designated geographic areas. The Law Offices of Jean D. Chen represented clients who invested a total of approximately $52,000,000 into projects under the EB-5 program.
In this case, the indictment describes steps taken by Chen and Ye to fraudulently obtain immigration benefits through the EB-5 program on behalf of their clients. First, the indictment alleges that Chen and Ye falsified documents to hide the true ownership and nature of a regional center. Specifically, the indictment alleges that in 2014, Chen and Ye purchased the Golden State Regional Center and other entities, and almost immediately after the purchase, transferred ownership to a straw owner. The person to whom the entity was transferred did not know she was being named as the owner. Also, Chen and Ye filed papers with USCIS, requesting that the government continue to recognize Golden State Regional Center as a regional center qualified to promote EB-5 investment within the South Bay. The papers contained false signatures of the purported straw owner. Second, defendants prepared and submitted falsified EB-5 applications. For example, visa applications contained false signatures of the purported straw owner, false statements about the extent to which the Law Offices of Jean D. Chen represented both the investor and Golden State Regional Center, and false statements about the manner in which investor funds would be used.
The indictment also charges defendants with obstruction of justice related to investigations being conducted by the United States Securities and Exchange Commission (SEC) and the FBI. On October 18, 2018, the SEC filed a civil complaint against Chen, Ye, and other individuals and entities, alleging, among other things, that Chen and Ye improperly solicited investments and committed other violations of law. The indictment alleges that during the course of the SEC’s investigation, defendants made demands of the straw owner of Golden State Regional Center that she provide false answers to SEC investigators. Further, the defendants allegedly logged onto someone else’s email account and deleted emails relevant to the FBI’s investigation into the visa fraud.
In sum, Chen and Ye both are charged with ten counts of visa fraud, in violation of 18 U.S.C. § 1546(a); one count of obstruction of justice, in violation of 18 U.S.C. § 1505; one count of obstruction of justice, in violation of 18 U.S.C. § 1512(b)(3); and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A. In addition, Ye is charged with one count of identity theft, in violation of 18 U.S.C. § 1018(a)(7).
An indictment merely alleges that crimes have been committed, and all defendants, including Chen and Ye, are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face the following maximum sentences:
DEFENDANT
STATUTE
CHARGE
MAXIMUM PENALTY
Chen and Ye
18 U.S.C. § 1546(a)
Visa Fraud
Maximum term of imprisonment: 10 years
Maximum fine: $250,000
Maximum term of supervised release: 3 years
Restitution
Forfeiture
Chen and Ye
18 U.S.C. § 1505
Obstruction of Justice
Maximum term of imprisonment: 5 years
Maximum fine: $250,000
Maximum term of supervised release: 3 years
Restitution
Forfeiture
Chen and Ye
18 U.S.C. § 1512(b)(3)
Obstruction of Justice
Maximum term of imprisonment: 20 years
Maximum fine: $250,000
Maximum term of supervised release: 3 years
Restitution
Forfeiture
Chen and Ye
18 U.S.C. § 1028A
Aggravated Identity Theft
Maximum term of imprisonment: 2 years (to run consecutive to any other underlying felony)
Maximum fine: $250,000
Maximum term of supervised release: 1 years
Ye
18 U.S.C. § 1028(a)(7)
Identity Theft
Maximum prison sentence: 5 years
Maximum fine: $500,000 or twice the gross gain or loss, whichever is greater
Maximum term of supervised release: 3 years
Restitution
Ye made an appearance yesterday before United States Magistrate Judge Susan van Keulen. He pleaded not guilty to the charges and was released on a $750,000 bond. His next scheduled appearance is for a hearing before the Honorable Lucy H. Koh, U.S. District Judge, on May 15, 2019, for a trial setting.
Chen remains at large. According to court documents, Chen became a naturalized citizen of Dominica in October 2018, approximately at the same time the SEC filed its complaint against her, and may be using the name Maria Sofia Taylor. Chen left the United States immediately after the SEC filed its civil complaint.
Assistant United States Attorney Patrick R. Delahunty is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation led by the FBI and the SEC Office of the Inspector General.
Owner of Medical Technology Company Sentenced to 30 Months in Prison for Evading Taxes on over $21 Million in Business IncomeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that LEWIS STAHL, the owner of a Manhattan medical technology company, was sentenced to 30 months in prison for evading federal income taxes on more than $21 million in business income, which resulted in a loss to the U.S. Treasury of more than $6.3 million in taxes due and owing. STAHL pled guilty to one count of tax evasion on September 27, 2018, before U.S. District Judge Ronnie Abrams, who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Lewis Stahl flagrantly evaded paying taxes on his business income, denying the federal government more than $6 million in taxes. Knowing full well that he was committing a crime, Stahl will spend time behind bars for his wrongdoing.”
According to the Information to which STAHL pled guilty, court filings, and statements made in public court proceedings:
STAHL is an experienced businessperson who owns and operates a Manhattan medical software company (the “Medical Technology Company”) that develops and sells medical software applications. The Medical Technology Company holds itself out as a provider of “computer ready” and “fully mobile” applications that allow physicians to prescribe medications and to order and view diagnostic information, lab results, and cardiology/radiology images.
Between 2010 and 2014, the Medical Technology Company earned more than $32 million in gross income. Less business expenses, these earnings resulted in over $21 million in business income to STAHL, which he accessed by using business bank accounts and business credit cards. STAHL used this money to fund the purchase of personal items for himself, such as clothing, jewelry, watches, real estate rentals, country club benefits, and a firearms collection. Prior to 2015, despite earning this business income from the Medical Technology Company, STAHL deliberately avoided filing tax returns, and did not report any of the income to the Internal Revenue Service (the “IRS”).
In March of 2015, an IRS revenue agent (the “IRS Revenue Agent”) contacted STAHL regarding his failure to file for the tax years 2010 through 2014, and asked STAHL to address the situation by filing delinquent Forms 1040 for those years (the “Delinquent Returns”). Shortly thereafter, STAHL retained a certified public accountant (the “Accountant”) to file the Delinquent Returns for STAHL. STAHL told the Accountant that he had failed to file tax returns in the past because he had payroll tax problems with the IRS and “stuck his head in the sand.” He also told the Accountant that he did not have any personal bank accounts in his name because he believed the IRS would seize any such accounts. STAHL further stated to the Accountant, falsely, that he was a “W-2” employee only of the Medical Technology Company, that his W-2 income was his only income, and that he had no ownership interest in the Medical Technology Company. In truth and in fact, STAHL had an ownership interest in the Medical Technology Company, and had earned over $21 million in business income from the company, well beyond the income of a few hundred thousand dollars that was reflected on his W-2s.
The Accountant subsequently filed the Delinquent Returns for STAHL, which, as a result of the lies that STAHL told the Accountant, were false and fraudulent. Specifically, the Delinquent Returns falsely claimed that STAHL’s total income was $38,652 in 2010; $7,115 in 2011; $84,615 in 2012; $100,000 in 2013; and $100,000 in 2014. The Delinquent Returns further falsely reported that STAHL did not receive any business income in any of these years, and failed to include a Schedule C detailing the significant amount of business income that STAHL earned from the Medical Technology Company. STAHL’s failure to report over $21 million in business income to the IRS – first by deliberately failing to file returns, and then by causing the false Delinquent Returns to be filed by the Accountant – resulted in a loss to the IRS of over $6.3 million in taxes due and owing.
* * *
In addition to the prison term, Judge Abrams ordered STAHL, 63, of Boca Raton, Florida, to serve three years of supervised release, and to make court-ordered restitution to the IRS.
Mr. Berman praised the outstanding investigative work of the IRS Criminal Investigation Division in this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sarah E. Paul is in charge of the prosecution.