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26 March 2019
Otsego Home Health Care Company to Pay More Than $700,000 to Resolve False Claims Act LiabilityRead the Press Release
United States Attorney Erica H. MacDonald today announced that Accurate Home Care, LLC (“Accurate Home Care”), a home health care company headquartered in Otsego, Minnesota, has agreed to pay $726,957.59 to resolve federal False Claims Act violations arising from the unlawful submission of claims for payment to Minnesota Medicaid, a jointly funded federal and state health care program.
According to the settlement agreement, Accurate Home Care voluntarily disclosed to the United States that it had submitted claims for payment for home care services to both Minnesota Medicaid and private insurers for the same service, and fraudulently retained full payment from Minnesota Medicaid, even where it was not the primary insurer. Pursuant to the settlement agreement, Accurate Home Care must pay the United States and the State of Minnesota a total of $726,957.59 to resolve the misconduct. Accurate worked cooperatively with the Department of Justice in voluntarily disclosing the false claims. Department of Justice policy encourages self-reporting of fraud and values company cooperation.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was handled by the U.S. Attorney’s Office for the District of Minnesota, with assistance from the Medicaid Fraud Control Unit of the Minnesota Attorney General’s Office and the Office of Inspector General of the U.S. Department of Health and Human Services.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Navajo Man Sentenced to Federal Prison for RobberyRead the Press Release
PHOENIX – On March 25, 2019, Kaniel Singer, 35, of Middle Mesa, Ariz., and a member of the Navajo Nation, was sentenced by U.S. District Judge Steven P. Logan to 57 months in prison, followed by a term of three years of supervised release. Singer had previously pleaded guilty to robbery.
On March 22, 2017, while driving across the Navajo Indian Reservation on US-160, the victim sustained a flat tire. While trying to change the tire, and waiting for roadside assistance, Singer pulled up with two unknown males and told the victim he was being robbed. After the victim complied with Singer’s demands by handing over his personal belongings, Singer ordered the victim into the victim’s car and drove off, threatening to kill the victim while traveling at speeds close to 80 mph. When Singer slowed down and turned onto a dirt road, the victim was able to jump out of his vehicle and run to the highway for assistance.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Law Enforcement. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08113-PCT-SPL
RELEASE NUMBER: 2019-034_Singer
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Morris County Man Sentenced on Child Porn ChargesRead the Press Release
TOPEKA, KAN. - A Morris County man was sentenced Monday to eight years in federal prison for downloading child pornography from the internet, U.S. Attorney Stephen McAllister said. In addition, he was ordered to pay $29,000 in restitution to victims.
Wesley Wagner, 54, White City, Kan., was convicted in October 2018 on one count of receiving child pornography and one count of possessing child pornography.
During trial, the prosecutor presented evidence that the FBI seized a server belonging to a now-defunct website called Playpen that provided users access to child pornography. The FBI used computer forensics to identify hundreds of the site’s users, including Wagner. Based on that information, the FBI obtained a warrant to search the defendant’s home.
McAllister commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
Monongalia County woman sentenced for maintaining a drug houseRead the Press Release
CLARKSBURG, WEST VIRGINIA - Brianna Blackman, of Morgantown, West Virginia, was sentenced today to 14 months incarceration for having a drug-involved premises, United States Attorney Bill Powell announced.
Blackman, also known as “BB,” age 23, pled guilty to one count of “Maintaining a Drug-Involved Premises” in October 2017. Blackman admitted to maintaining an apartment in Rhea Terrace in Fairmont in Marion County, West Virginia for the purpose of distributing oxycodone. The crime occurred from May until December 2016.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of the U.S. Drug Enforcement Administration. the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Monongalia County Sheriff’s Office, Morgantown Police Department, the Star City Police Department, the West Virginia State Police, the West Virginia University Police Department, the Granville Police Department, and the Monongalia County Prosecuting Attorney’s Office.
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.
Senior U.S. District Judge Irene M. Keeley presided.
Monongalia County man admits to role in a drug distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Preston Jeffrey Smith, of Morgantown, West Virginia, has admitted to his involvement in a heroin, oxycodone, and cocaine distribution operation, United States Attorney Bill Powell announced.
Smith, age 25, pled guilty to one count of “Aiding and Abetting the False Statement in Connection with the Acquisition of a Firearm.” Smith admitted to making a false statement to purchase a 5.56 mm caliber pistol in May 2018 in Monongalia County.Smith faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Mississippi Man Pleads Guilty to Health Care Fraud, Money Laundering and Tax Evasion Charges for Role in $200 Million Compounding Pharmacy SchemeRead the Press Release
A Hattiesburg, Mississippi man pleaded guilty today for his role in a $200 million compounding pharmacy scheme to defraud health care benefit programs, including TRICARE, which is the program that covers U.S. military service members and their families.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Mike Hurst of the Southern District of Mississippi; Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Field Office; Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation’s (IRS-CI) Atlanta Field Office and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Glenn Doyle Beach Jr., 46, pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering and tax evasion, before U.S. District Judge Keith Starrett of the Southern District of Mississippi. Beach was charged in May 2018 in a 26-count indictment and had been scheduled to begin trial today. He is scheduled to be sentenced on July 2, 2019.
“Glenn Doyle Beach and his co-conspirators stole hundreds of millions of dollars from federal health care programs, including TRICARE, which provides benefits to brave members of our military and their families,” said Assistant Attorney General Benczkowski. “The Criminal Division remains dedicated to rooting out and punishing this kind of misconduct, and to protecting America’s important health care programs from fraud and abuse.”
“While our men and women in uniform were defending the freedoms and values we hold dear, this defendant was selfishly stealing precious money and resources from their military healthcare system, TRICARE, to the detriment of us all,” said U.S. Attorney Hurst. “Our investigators and prosecutors are to be commended for their steely resolve in rooting out corruption and administering justice for victims. We will not stop until every last person involved in this criminal scheme has been brought to justice.”
“Fraud schemes of this magnitude disrupt the fabric of our health care system, ultimately damaging our nation's economy and costing taxpayers billions each year,” said FBI Special Agent in Charge Freeze. “Today's guilty plea brings this case one step closer to justice and proves that the collective resources of all partnering agencies will continue to expose these schemes and will actively seek justice for those who participate in them."
Beach was an owner and the managing member of Advantage Pharmacy of Hattiesburg. At the hearing today, Beach admitted his role in a scheme to defraud health care benefit programs, including TRICARE, by marketing medications known as compounded medications, which ordinarily are medications that are specially combined or formulated to meet the individual needs of patients. Beach admitted, however, that through Advantage Pharmacy of Hattiesburg, he formulated compounded medications without regard to the individual needs of the patients, but instead in order to increase reimbursements paid by health care benefit programs. Furthermore, Beach admittedly created a fictitious paper trail to mislead insurance auditors who attempted to uncover the fraud.
Beach further detailed a money laundering and tax evasion scheme that he and other co-conspirators used to conceal the fraudulent proceeds and evade taxes.
From approximately April 2012 through January 2016, health care benefit programs, including TRICARE, reimbursed Advantage Pharmacy and other pharmacies involved in the scheme at least $200 million, Beach admitted. The government seized more than $6 million in cash and other assets from Beach, which will be forfeited in connection with his guilty plea.
Since 2017, 11 other individuals involved in this scheme have pleaded guilty, and one was convicted at trial. The investigation is ongoing.
This case was investigated by the FBI, IRS-CI and DCIS, among other agencies. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mary Helen Wall of the Southern District of Mississippi and Sean Welsh of the Western District of Virginia, formerly of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), are prosecuting the case, with the assistance of Trial Attorney Amanda Wick of MLARS.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Mississippi Man Pleads Guilty to Health Care Fraud, Money Laundering and Tax Evasion Charges for Role in $200 Million Compounding Pharmacy SchemeRead the Press Release
WASHINGTON – A Hattiesburg, Mississippi man pleaded guilty today for his role in a $200 million compounding pharmacy scheme to defraud health care benefit programs, including TRICARE, which is the program that covers U.S. military service members and their families.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Mike Hurst of the Southern District of Mississippi; Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Field Office; Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation’s (IRS-CI) Atlanta Field Office and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Glenn Doyle Beach Jr., 46, pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering and tax evasion, before U.S. District Judge Keith Starrett of the Southern District of Mississippi. Beach was charged in May 2018 in a 26-count indictment and had been scheduled to begin trial today. He is scheduled to be sentenced on July 2, 2019.
“Glenn Doyle Beach and his co-conspirators stole hundreds of millions of dollars from federal health care programs, including TRICARE, which provides benefits to brave members of our military and their families,” said Assistant Attorney General Benczkowski. “The Criminal Division remains dedicated to rooting out and punishing this kind of misconduct, and to protecting America’s important health care programs from fraud and abuse.”
“While our men and women in uniform were defending the freedoms and values we hold dear, this defendant was selfishly stealing precious money and resources from their military healthcare system, TRICARE, to the detriment of us all,” said U.S. Attorney Hurst. “Our investigators and prosecutors are to be commended for their steely resolve in rooting out corruption and administering justice for victims. We will not stop until every last person involved in this criminal scheme has been brought to justice.”
“Fraud schemes of this magnitude disrupt the fabric of our health care system, ultimately damaging our nation's economy and costing taxpayers billions each year,” said FBI Special Agent in Charge Freeze. “Today's guilty plea brings this case one step closer to justice and proves that the collective resources of all partnering agencies will continue to expose these schemes and will actively seek justice for those who participate in them."
Beach was an owner and the managing member of Advantage Pharmacy of Hattiesburg. At the hearing today, Beach admitted his role in a scheme to defraud health care benefit programs, including TRICARE, by marketing medications known as compounded medications, which ordinarily are medications that are specially combined or formulated to meet the individual needs of patients. Beach admitted, however, that through Advantage Pharmacy of Hattiesburg, he formulated compounded medications without regard to the individual needs of the patients, but instead in order to increase reimbursements paid by health care benefit programs. Furthermore, Beach admittedly created a fictitious paper trail to mislead insurance auditors who attempted to uncover the fraud.
Beach further detailed a money laundering and tax evasion scheme that he and other co-conspirators used to conceal the fraudulent proceeds and evade taxes.
From approximately April 2012 through January 2016, health care benefit programs, including TRICARE, reimbursed Advantage Pharmacy and other pharmacies involved in the scheme at least $200 million, Beach admitted. The government seized more than $6 million in cash and other assets from Beach, which will be forfeited in connection with his guilty plea.
Since 2017, 11 other individuals involved in this scheme have pleaded guilty, and one was convicted at trial. The investigation is ongoing.
This case was investigated by the FBI, IRS-CI and DCIS, among other agencies. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mary Helen Wall of the Southern District of Mississippi and Sean Welsh of the Western District of Virginia, formerly of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), are prosecuting the case, with the assistance of Trial Attorney Amanda Wick of MLARS.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Middlesex County, New Jersey, Tax Preparer Admits FraudRead the Press Release
NEWARK, N.J. – A Keasbey, New Jersey, tax preparer today admitted filing a false tax return for two clients and failing to file a tax return, U.S. Attorney Craig Carpenito announced.
David Patterson, 37, was indicted in October 2018 and pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court to Count 24, aiding and assisting in the preparation of a false income tax return, and Count 25, failure to file a tax return for 2013, of the superseding indictment.
According to documents filed in this case and statements made in court:
Patterson owned D&D Tax Service LLC, a tax preparation business located in Keasbey. He admitted preparing a fraudulent tax return on behalf of two clients for tax year 2012 in which he falsified the clients’ medical and dental expenses, gifts to charity and unreimbursed employee expenses. He also admitted failing to file an individual tax return and pay federal income taxes for calendar year 2013.
The false filing count carries a maximum potential penalty of three years in prison and a $250,000 fine. The failure to file count carries a maximum potential penalty of up to one year in prison and a $100,000 fine. For purposes of sentencing, Patterson admitted to aiding and assisting in the preparation of 23 additional false tax returns and failing to file tax returns for calendar years 2014 and 2015, resulting in an aggregate loss of $290,321. Sentencing is scheduled for Aug. 12, 2019.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, the Department of Justice Tax Division, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit and Trial Attorney Eric Powers of the Department of Justice Tax Division.
Defense counsel: James Friedman Esq., New Brunswick, New Jersey
Meridian Man Pleads Guilty to Cocaine TraffickingRead the Press Release
Jackson, Miss. – Kenneth Dewayne Williams, 45, of Meridian, pled guilty today before Chief U.S. District Judge Daniel P. Jordan III to possession with intent to distribute 500 grams of a detectible amount of cocaine hydrochloride, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Assistant Special Agent in Charge J. Derryle Smith.
The case is the result of an extensive investigation dubbed Operation "Deadly Dose" which began as an initiative targeting illegal narcotics distribution in central Mississippi that involved the distribution of heroin and cocaine. During the investigation, agents learned of an upcoming cocaine transaction between Williams and a coconspirator. On December 4, 2017, agents conducted a traffic stop of Williams on Interstate 20 east of Jackson, where agents seized approximately 2 kilograms of cocaine and $17,000.00.
Williams will be sentenced by Judge Jordan on June 28, 2019, at 9:00 a.m. He faces a maximum penalty of 40 years in prison and a $5,000,000 fine, followed by a term of supervised release of at least 4 years.
The case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, the Bureau of Alcohol Tobacco Firearms and Explosives, the U.S. Marshals Service, the Hinds County Sheriff’s Office, the Jackson Police Department, and the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Chris Wansley.
Members of Fraudulent Jamaican Sweepstakes Ring Sentenced for Conspiracy, Money Laundering and Aggravated Identity TheftRead the Press Release
Orlando, Florida – United States District Judge Roy B. Dalton has sentenced Shameer Hassan (45, Kissimmee) and Nadine Bromfield Alexander (39, Orlando) to 10 years and 7 years in federal prison, respectively, for conspiracy to commit wire fraud, conspiracy to commit money laundering, and aggravated identity theft. Hassan was sentenced to an additional 2 years’ imprisonment for money laundering. The court also ordered Hassan and Alexander to pay $150,314 in restitution to the identified victims of the fraud scheme.
A federal jury found Hassan and Alexander guilty on November 6, 2018.
According to testimony and evidence presented at trial, Hassan and Alexander participated in a fraudulent sweepstakes scheme that operated in the Middle District of Florida and Jamaica. Members of the conspiracy targeted victims throughout the United States, many of whom were elderly, and falsely informed them that they had won a multi-million dollar prize in a sweepstakes contest. The conspirators instructed the victims to wire funds to “representatives” in Orlando in order to prepay fees and taxes associated with the prize. Upon receipt of the funds, other members of the conspiracy converted the funds to money orders and cash. They then paid Hassan, who operated several money transfer businesses, to wire the fraud proceeds to Jamaica.
Alexander stole the personal identity information belonging to more than 35 individuals from her workplace and gave that information to her co-conspirators. Hassan then used the stolen identity information to launder the funds. In less than two years, Hassan and his co-conspirators transferred $4.7 million in funds, obtained from victims, to conspirators in Jamaica.
The court previously sentenced the following members of the conspiracy:
Charlton Morris (39, Casselberry) pleaded guilty to conspiracy to commit money laundering. He was sentenced to 10 years, 1 month in prison.
Robert Blake Madurie (29, Jamaica) pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. He was sentenced to eight years in prison.
Danny Lopez (32, Orlando) pleaded guilty to conspiracy to commit wire fraud. He was sentenced to seven years and eight months in prison.
Treysier LaPalme (25, Orlando) pleaded guilty to conspiracy to commit wire fraud. He was sentenced to seven years and three three months in prison.
Oral Anthony Stewart (35, Lithonia, Georgia) pleaded guilty to conspiracy to commit wire fraud. He was sentenced to five years in prison.
This case was investigated by the Department of Homeland Security and the SCIRS Federal Financial Crimes Task Force, whose members include the IRS- Criminal Investigation, the Brevard County Sheriff’s Office, the St. Cloud Police Department, the Osceola County Sheriff’s Office, the Winter Park Police Department, the Casselberry Police Department, the Kissimmee Police Department, the Maitland Police Department, the Palm Bay Police Department, and the U.S. Secret Service. It was prosecuted by Assistant United States Attorneys Karen L. Gable and Roger B. Handberg.
McAlester Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ronnie Lee Faulconer, age 54, of McAlester, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 992(g)(1), 924(a)(2) and 924(e), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both. However, if the court deems the defendant to be an Armed Career Criminal, the offense is punishable by not less than 15 years imprisonment.
The Indictment alleges that on or about December 9, 2018, in the Eastern District of Oklahoma the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the McIntosh County Sheriff’s Office and the Federal Bureau of Investigation.
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 Sarah McAmis represented the United States.
Maryland Sex Offender Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Freddie Emerson Crockett, age 40, of Earleville, Maryland, to 10 years in prison, followed by lifetime supervised release for possession of child pornography. In imposing this sentence, the Court also found that Crockett had transported child pornography. Crockett will also pay $500 in restitution to one of the victims depicted in the images of child pornography that he possessed and transported. In addition, upon his release from prison, Crockett must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, Crockett used two accounts on a social networking account to store, transport, and possess child pornography. Specifically, between October 20, 2016 and October 24, 2017, Crockett used several email addresses to upload child pornography to his social networking accounts. On October 3, 2017, Yahoo deactivated one of Crockett’s accounts, and the associated email address, for possession of child pornography. The next day, Yahoo reported to the National Center for Missing and Exploited Children (NCMEC) that someone using that email address had uploaded 133 files containing possible child pornography. Yahoo provided additional information to NCMEC, including the phone number and other email addresses associated with the owner of the account, as well as reporting Crockett’s possible association with the account. On October 17, 2017, NCMEC provided Yahoo’s report to the Maryland State Police. On October 3, 2017, the same day Yahoo deactivated one of his accounts for uploading and possessing child pornography, Crockett created a new account with a new email address, and used that account to upload additional images of child pornography. Yahoo again filed a report with NCMEC, who also provided that report to the Maryland State Police.
Further investigation led the Maryland State Police to execute a search warrant at Crockett’s residence in Earleville on November 22, 2017. An on-scene forensic preview of the memory card from Crockett’s cell phone located several images of child pornography. Crockett’s phone, the memory card, and his laptop were seized. A forensic examination of those items revealed more than 75 images depicting child pornography, including several images of a prepubescent female engaged in sexually explicit conduct.
Crockett was already a sex offender based on two 2010 convictions in the Circuit Court for Cecil County for surreptitiously recording 13 and 16-year-old females while they were changing clothes in a bathroom at his residence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI-Baltimore and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Judson T. Mihok, who prosecuted the federal case.
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Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Nicole Renee Kemp, 42, of Lincoln, was sentenced today to five years and three months, (63 months) in federal prison by Senior United States District Richard G. Kopf for conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine mixture and 50 grams or more of actual (pure) methamphetamine. Following the prison term, Kemp will serve three years on supervised release.
Information provided to law enforcement indicated that between July of 2016 and September of 2017, Kemp was involved in the distribution of at least 1.5 kilograms (approximately three pounds) of methamphetamine mixture and at least 150 grams (over five ounces) of actual (pure) methamphetamine.
In August of 2017, Kemp was stopped by the Lincoln Police Department where officers found over a pound of methamphetamine in the car she was driving. At the time of that stop, Kemp told officers she did not know there was methamphetamine in the car, but she said her co-defendant, Bryant Omonttez Williams, was in the car earlier moving a box around in the backseat.
In September of 2017, a confidential informant, working with investigators, contacted Kemp. Kemp told the informant that Williams had methamphetamine for sale. Williams provided the informant with approximately 1/8 ounce of methamphetamine. On the following day, Kemp met with the informant and collected the money owed for the methamphetamine provided on the previous day by Williams.
Williams also pleaded guilty to the conspiracy charge and was sentenced in October of 2018 to 262 months in federal prison.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lewis County man sentenced for drug and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – John David Davisson, of Weston, West Virginia, was sentenced today to 123 months incarceration for firearms and methamphetamine distribution charges, United States Attorney Bill Powell announced.
Davisson, age 28, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Carry a Firearm During a Drug Trafficking Crime” in October 2018. Davisson admitted to possessing a .45-caliber pistol and two 9mm pistols while possessing crystal methamphetamine, also known as ice, in October 2017 in Lewis County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives and the Lewis County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
Leader of Hooligans Motorcycle Gang Admits Stealing Jeeps throughout San Diego CountyRead the Press Release
Assistant U.S. Attorneys Andrew J. Galvin (619) 546-9721 and Joseph S. Green (619) 546-6955
NEWS RELEASE SUMMARY – March 26, 2019
SAN DIEGO – Jimmy Josue Martinez, a leader of the Hooligans motorcycle gang, pleaded guilty today and admitted to participating in a sophisticated scheme to steal dozens of Jeep Wranglers in San Diego County using handheld electronic devices and stolen codes.
According to court records, the Hooligans are responsible for the theft of more than 150 Jeep Wranglers worth approximately $4.5 million within San Diego County since 2014. The Hooligans used high-tech methods to disable security systems and steal Jeeps in just a few minutes, in the middle of the night, while unsuspecting owners slept nearby. After stealing the Jeeps in San Diego County, the Hooligans transported them to Tijuana, Mexico, where the vehicles were sold or stripped for parts.
In his plea agreement, Martinez admitted to stealing Jeeps in Pacific Beach, Serra Mesa, Chula Vista, Mission Valley, Ocean Beach, Hillcrest and North Park. Martinez also admitted to leading one of the Hooligans theft crews, which would target a specific Jeep days before the actual theft would take place. Martinez and members of his theft crew obtained the vehicle identification number in advance and then managed to get secret key codes, which allowed them to create a duplicate key for that particular Jeep. Then, during the theft, they disabled the alarm system, programmed the duplicate key using a handheld electronic device, and quietly drove away without notice.
In November 2014, San Diego Police Department patrol units attempted to stop Martinez after he participated in the theft of a Jeep in Mira Mesa. Martinez failed to pull over and drove south along Interstate 805 at speeds exceeding 120 miles per hour. Customs and Border Patrol officers unsuccessfully attempted to stop Martinez at the United States/Mexico border. In his plea agreement, Martinez admitted to ramming a vehicle stopped in front of him multiple times in order to maneuver around concrete barriers and drive south into Mexico.
“The joy ride is over for Mr. Martinez,” said U.S. Attorney Robert Brewer. “These thefts were audacious and sophisticated and created hassle and heartache for scores of Jeep owners. I congratulate prosecutors Andrew Galvin and Joseph S. Green, the FBI and members of the Regional Auto Theft Task Force for putting together a strong case against a gang that, unfortunately, has lived up to its name.”
“This case is a reminder that our proximity to the international border provides increased opportunity for transnational organized crime,” said FBI Acting Special Agent in Charge Suzanne Turner. “The Hooligans crime group took advantage of this proximity by stealing millions of dollars’ worth of vehicles from San Diegans in order to hide, chop, sell, and profit from those vehicles in Mexico. The FBI worked day and night, alongside our partners at the Regional Auto Theft Task Force (RATT), to bring Martinez, the leader of this transnational organization, to justice.”
Martinez and eight other members of the Hooligans were charged in a grand jury indictment in May 2017. As part of his plea, Martinez agreed to pay at least $246,396 in restitution. Martinez will appear for sentencing on June 24, 2019 at 10:30 a.m. before U.S. District Judge John A. Houston. Of the nine Hooligans charged, six have pleaded guilty and three remain fugitives.
DEFENDANT: Case Number 17-CR-1314-JAH
Jimmy Josue Martinez Age: 33 Tijuana, Mexico
SUMMARY OF CHARGES
Conspiracy to Commit Transportation of Stolen Vehicles in Foreign Commerce – Title, 18 U.S.C., Section 371
Maximum penalty: 5 years’ imprisonment; $250,000 fine; restitution.
AGENCIES
Federal Bureau of Investigation
Regional Auto Theft Task Force, which includes the following agencies: U.S. Border Patrol
California Highway Patrol
National Insurance Crime Bureau
California Department of Insurance
California Department of Motor Vehicles
San Diego County District Attorney’s Office
San Diego County Probation Department
San Diego County Sheriff’s Department
ICE Enforcement and Removal Operations and police departments from La Mesa, Chula Vista, National City, Oceanside and San DiegoLake Charles man sentenced to 57 months in prison for distributing methamphetamineRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that Paul Loudin, 40, of Lake Charles, was sentenced Monday to four years and nine months in prison by U.S. District Judge Donald E. Walter for distribution of methamphetamine.
Law enforcement agents executed a search warrant on March 14, 2017 at Loudin’s home in Lake Charles and found approximately 586 grams of methamphetamine and 728 ecstasy pills. Loudin admitted during his guilty plea on December 14, 2018 that he was aware the drugs were located at his residence and that he intended to distribute them.
Homeland Security Investigations and the Combine Anti-Drug Task Force conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Keene Man Sentenced to 20 Years for Sexually Exploiting a ChildRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Benjamin Gagnon, 35, of Keene, New Hampshire, was sentenced today in U.S. District Court in Concord, New Hampshire by Judge Joseph A. DiClerico, Jr. to 20 years in prison and eight years of supervised release for sexual exploitation of a minor. Gagnon pleaded guilty to the charge on September 13, 2018.
According to court records, in January 2017, Gagnon, who was in New Hampshire, persuaded and induced a minor female in Texas to create still images and videos depicting the minor engaging in sexually explicit conduct. The minor then transmitted the images and videos to Gagnon over the internet. Gagnon later uploaded the images to an online account, where they were found by investigators in August 2017.
“The defendant in this case used online messaging applications to target children and sexually exploit vulnerable victims, a dangerous type of criminal threat that all parents should understand and about which they should educate their children,” said Peter C. Fitzhugh, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Boston. “With any Internet connection or a smart phone, even the youngest of children are susceptible to this type of trickery and criminal exploitation. Cases like this are why HSI will continue to join forces with the New Hampshire Internet Crimes Against Children (ICAC) Task Force to combat the sexual exploitation of children.”
The investigation was conducted by HSI; the Keene Police Department; and the ICAC Task Forces located in New Hampshire, North Carolina, and Houston, Texas.
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.
Justice Department Files Statement of Interest in New York Church Religious Land Use CaseRead the Press Release
WASHINGTON – The Justice Department today filed a Statement of Interest in U.S. District Court for the Northern District of New York supporting a church’s claim that the Village of Canton, New York, violated its rights under the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) by barring it from locating its church in the Village’s commercial zoning district.
“Federal law protects the ability of religious groups of all faiths to locate and grow their worship sites in communities across the country,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “It includes a requirement that religious assemblies be treated equally with nonreligious assemblies. The Department of Justice is committed to enforcing this and other federal protections for religious freedom.”
“The right to the free exercise of religion includes the freedom to assemble in a house of worship,” said Grant C. Jaquith, United States Attorney for the Northern District of New York. “When faith communities face discrimination through zoning or land use regulation, we will use the full force of federal law to ensure that this fundamental right is not unlawfully infringed.”
The case, Christian Fellowship Centers of New York, Inc. v. Village of Canton, involves a congregation that purchased property in the Village’s commercial zoning district to use for worship. After the Village denied zoning approval, the church filed a lawsuit alleging that the Village violated RLUIPA because the Village permits other assemblies in the commercial district, including theaters, fraternal organizations and social clubs. The church also stated in court filings that it is seeking to hold worship services this Sunday, March 31, at the property it purchased in the commercial zoning district. The church has no other location options to hold its religious services on that date.
The United States’ Statement of Interest supports the Christian Fellowship Centers of New York Inc.’s argument that RLUIPA’s “equal terms” provision treated the church less favorably than the various other groups permitted in the district.
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.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may 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.
Justice Department Files Statement of Interest in New York Church Religious Land Use CaseRead the Press Release
The Justice Department today filed a Statement of Interest in U.S. District Court for the Northern District of New York supporting a church’s claim that the Village of Canton, New York, violated its rights under the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) by barring it from locating its church in the Village’s commercial zoning district.
“Federal law protects the ability of religious groups of all faiths to locate and grow their worship sites in communities across the country,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “It includes a requirement that religious assemblies be treated equally with nonreligious assemblies. The Department of Justice is committed to enforcing this and other federal protections for religious freedom.”
“The right to the free exercise of religion includes the freedom to assemble in a house of worship,” said Grant C. Jaquith, U.S. Attorney for the Northern District of New York. “When faith communities face discrimination through zoning or land use regulation, we will use the full force of federal law to ensure that this fundamental right is not unlawfully infringed.”
The case, Christian Fellowship Centers of New York, Inc. v. Village of Canton, involves a congregation that purchased property in the Village’s commercial zoning district to use for worship. After the Village denied zoning approval, the church filed a lawsuit alleging that the Village violated RLUIPA because the Village permits other assemblies in the commercial district, including theaters, fraternal organizations and social clubs. The church also stated in court filings that it is seeking to hold worship services this Sunday, March 31, at the property it purchased in the commercial zoning district. The church has no other location options to hold its religious services on that date.
The United States’ Statement of Interest supports the Christian Fellowship Centers of New York Inc.’s argument that RLUIPA’s “equal terms” provision treated the church less favorably than the various other groups permitted in the district.
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 http://www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may 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.
Iowa Man Sentenced for Illegally Possessing FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Hawarden, Iowa, man convicted for being a felon in possession of a firearm was sentenced on March 25, 2019, by U.S. District Judge Karen E. Schreier.
Austin Joseph Gengler, age 28, was sentenced to 67 months in custody, concurrent to a state sentence he is currently serving, to be followed by 3 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Gengler was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury on October 10, 2018. He pled guilty on December 10, 2018.
Law enforcement arrested Gengler on May 8, 2018, for absconding parole. His vehicle was searched and a .410 gauge shotgun was located. Gengler is prohibited from possessing firearms because he is a convicted felon.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Sioux Falls Area Fugitive Task Force, the Minnehaha County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Gengler was returned to the Mike Durfee State Prison in Springfield, South Dakota, to finish his state sentence. He will then be taken to a federal institution to serve his sentence in this matter.
Indictment: Troopers Found 50+ Pounds of Meth Hidden in CarRead the Press Release
WICHITA, KAN. – A California man was indicted Tuesday on a federal charge of smuggling more than 50 pounds of methamphetamine into Kansas, U.S. Attorney Stephen McAllister said.
Jesus Antonio Garcia-Maldonado, 36, Panorama City, Calif., is charged with one count of possession with intent to distribute approximately 23 kilograms of methamphetamine. Garcia-Maldonado was stopped for a traffic violation in Clark County, Kan. Officers found the drugs under the seats and hidden in rear quarter panels of the car. The car was rented in San Diego, Calif.
If convicted, he faces not less than 10 years in federal prison and a fine up to $10 million. The Clark County Sheriff’s Office and the Drug Enforcement Administration investigated. Assistant U.S. Mona Furst is prosecuting.
OTHER INDICTMENTS
Edgar Santiago, 31, Fontana, Calif., and Alyssa Kysha Gomez, 29, Adelanto, Calif, is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Jan. 16, 2019, in Geary County, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $4 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Keayon M. Hadley, 41, Independence, Kan., is charged with two counts of unlawful possession of a firearm by a convicted felon. The crimes are alleged to have occurred Feb. 19, 2019, in Wichita, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000 on each count. The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Daniel Wood, 29, is charged with one count of unlawful possession of a firearm by a convicted felon and one count of unlawful possession of a sawed off shotgun. The crimes are alleged to have occurred Feb. 23, 2019, in Wichita, Kan.
If convicted, he faces up to 10 years in prison and a fine on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Simon Rochel-Cervantes, 46, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found March 5, 2019, in Sedgwick County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement HSI investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Jacob E. Silcott, 29, Wichita, Kan., is charged in a superseding indictment with one count of unlawful possession of a sawed off shotgun, one count of unlawful possession of a firearm by a convicted felon, and one count of unlawful possession of ammunition by a convicted felon. The crimes are alleged to have occurred in May and December 2018 in Wichita, Kan.
If convicted, he faces up to 10 years in federal prison and a fine on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Honduran Man Pleads Guilty to Third Illegal EntryRead the Press Release
NORFOLK, Va. – A Honduran man pleaded guilty today to illegally reentering the United States for a third time.
According to court documents, Luis Omar Vallarez-Martinez, 36, first entered the United States illegally in April 2006, by wading across the Rio Grande river. He was apprehended by immigration authorities in Texas and removed back to Honduras. He again illegally entered the country in March 2009, and was again promptly removed. At some point, he illegally entered the United States for a third time. He was found in Norfolk in November 2018, when he was arrested on charges of public intoxication, brandishing a firearm, and reckless handling of a firearm.
Valladarez-Martinez pleaded guilty to reentry by an excluded, deported, and removed alien and faces a maximum penalty of two years in prison when sentenced on July 8. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jeffrey M. Jacoff, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea. Assistant U.S. Attorney V. Kathleen Dougherty is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-12.
Hartford Man Pleads Guilty to Federal Gun ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that BENICIO VASQUEZ, 32, of Hartford, pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of unlawful possession of a firearm and ammunition by a felon.
According to court documents and statements made in court, on July 19, 2018, Hartford police arrested Vasquez and a subsequent search of his residence revealed a Taurus .357 caliber revolver loaded with six rounds of ammunition.
Vasquez’s criminal history includes state felony convictions for drug and money laundering offenses.
Vasquez has been detained since his arrest. Judge Bolden scheduled sentencing for June 24, 2019, at which time Vasquez faces a maximum term of imprisonment of 10 years.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division provided valuable assistance to the investigation. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Hardy County man sentenced for his role in heroin distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Brandon David Fout, of Oil Fields, West Virginia, was sentenced today to five years probation for his role in a heroin distribution ring, United States Attorney Bill Powell announced.
Fout, age 23, pled guilty to one count of “Interstate Travel in Furtherance of a Drug Crime” in July 2016. Fout traveled to Maryland from West Virginia to assist in the distribution of heroin in June 2015.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the West Virginia State Police, the West Virginia State Police Criminal Bureau of Investigations, and the Hardy County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.Guatemalan Man Sentenced to Prison for Illegally Reentering the United States After Prior DeportationRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to over four months in federal prison.
Julian Pol-Xan, age 42, a citizen of Guatemala illegally present in the United States and residing in Marshalltown, Iowa, received the prison term after a January 16, 2019, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Pol-Xan admitted he had previously been deported from the United States in August 2003 and illegally reentered the United States in 2005 without the permission of the United States government. Pol-Xan was deported after he was found to be working at a meat packing plant in Dakota City, Nebraska, under a fake name and using fraudulent identification documents.
In November 2018, Pol-Xan was found by immigration agents after he was detained by the Meskwaki Nation Police Department in Tama, Iowa, after Pol-Xan attempted to enter the Meskwaki Casino using a fraudulent identification card.
Pol-Xan was sentenced in Cedar Rapids by United States District Court Judge C. J. Williams. Pol-Xan was sentenced to 127 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Pol-Xan is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-0115.
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Grayson County Woman Pleads Guilty to Health Care FraudRead the Press Release
Abingdon, VIRGINIA – A Troutdale, Va. woman, who worked as a Consumer Directed Services Facilitator (CDSF) to assist elderly and disabled Virginia Medicaid recipients, pleaded guilty yesterday in federal court to healthcare fraud, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark R. Herring announced.
Crystal Michelle Smith, 50, pleaded guilty yesterday to one count of health care fraud. At sentencing, she faces up to ten years in prison and up to a $250,000 fine.
“Protecting federal health-care programs and their beneficiaries from fraud, waste, and abuse is among the top priorities of the U.S. Department of Justice,” U.S. Attorney Cullen stated today. “We will continue to work closely with the Virginia Attorney General’s Office and the Medicaid Fraud Control Unit to investigate individuals and entities, like this defendant, who abuse the trust of these programs and the people they are supposed to serve.”
“We will continue to work closely with our federal partners to root our provider fraud because it weakens this important program for those who truly need it,” said Attorney General Mark R. Herring.
According to information presented at yesterday’s guilty plea by Special Assistant United States Attorney and Virginia Assistant Attorney General Janine M. Myatt, Smith entered into a provider agreement with the Department of Medical Assistance Services (DMAS) and received payments from 2011 to 2018. The payments were for services provided to Medicaid recipients through Virginia Medicaid’s Commonwealth Coordinated Care Plus Waiver Program, formerly known as the Elderly or Disabled with Consumer Direction Waiver Program.
However, a review of Smith’s case files and Medicaid Billing reels, show Smith billed DMAS for 1,732 reassessment, routine visits and training that did not have the required supporting documentation or did not occur at all. Smith admitted to making copies of recipient’s signatures on DMAS forms, which she then re-used to create subsequent forms.
From August 2011 to March 2018, Smith fraudulently billed DMAS $121,435 and was paid $113,877.
The investigation of the case was conducted by the Virginia Attorney General’s Office Medicaid Fraud Control Unit. Special Assistant United States Attorney and Assistant Attorney General Janine M. Myatt is prosecuting the case for the United States.
Georgia women sentenced for stealing HUD funds intended for disabled women and childrenRead the Press Release
ATLANTA - Janice Cooks has been sentenced for stealing hundreds of thousands of dollars in Department of Housing and Urban Development (HUD) funds intended for housing for disabled women and their children.
“The defendant obtained nearly a million dollars from HUD in grant funds designated for housing for disabled women and children,” said U.S. Attorney Byung J. “BJay” Pak. “Cooks intentionally mismanaged the money, spent it on personal and business expenses not covered by the grant, and ultimately caused the intended recipients to lose their homes.
“This sentencing proves our continuing resolve to root out thievery in all forms, especially when the funds involved should have been used to help vulnerable members of our society,” said Nadine Gurley, Special Agent in Charge, Office of Inspector General, U.S. Department of Housing and Urban Development. “We will continue to work with our law enforcement partners and the U.S. Attorney’s Office to protect the integrity of our housing programs.”
“Whether it’s housing benefits for eligible individuals, or Social Security payments to disabled persons, the Social Security Office of the Inspector General is committed to working with our Federal, State and local law enforcement partners to combat fraud, waste, and abuse in benefit programs,” said Wayne R. Warren, Acting Special Agent-in-Charge of the SSA OIG Atlanta Field Division. “Cases like this keep us focused on pursuing bad actors to protect Social Security and other benefits for those whose truly depend on them.”
According to U.S. Attorney Pak, the charges and other information presented in court: During the years 2012 through 2015, HUD awarded Cooks three grants to fund the Quilt SOLE program; a program to provide housing for disabled women and children. Prior to receiving any grant funds, she was required to submit a detailed budget outlining the costs of her program and also attend a training conference to ensure she understood the rules and regulations surrounding receiving federal grant funds. The program rules required that she spend funds only in a manner consistent with her detailed budget and that she maintain documentation to justify all of her spending.
HUD approved funds for the Quilt SOLE to rent 14 apartments thus providing housing for 14 disabled women and their children. Cooks failed to adhere to the budget she created and to follow the program’s rules. In 2012, she requested and received approximately $125,000 in HUD funds. Instead of spending those funds on Quilt SOLE, she transferred over $59,000 into her own personal savings account.
Additionally, despite receiving funding for only 14 apartments, Cooks rented between 22 and 24 apartments at the same apartment complex. She also used HUD funds on business expenses not related to the Quilt SOLE program and on personal expenses like travel, dining out, and shopping. As a result of her misappropriation of the HUD funds in 2015, every family she was supposed to provide housing for received eviction notices and were forced to find other places to live.
Janice Cooks, 53, of Lithonia, Georgia, has been sentenced to four months in prison and eight months of home confinement to be followed by three years supervised release, and ordered to pay a $100 special assessment, and pay restitution of $198,907 to HUD and $35,812.51 to Ashley Cascade Apartments. Cooks was convicted of these charges on September 8, 2017, after she pleaded guilty.
This case was investigated by the Department of Housing and Urban Development and Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman and Assistant U.S. Attorney John S. Ghose prosecuted the case.
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.
Fourth Paterson, New Jersey, Police Officer Charged with Conspiracy to Violate Civil RightsRead the Press Release
NEWARK, N.J. – A City of Paterson police officer was arrested today and charged with conspiring to violate the civil rights of motor vehicle occupants and others in Paterson, New Jersey, U.S. Attorney Craig Carpenito announced.
Daniel Pent, 32, of Paterson, was arrested by special agents of the FBI on a complaint charging him with conspiring to deprive individuals of civil rights under color of law. Pent is scheduled to have his initial appearance this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to documents filed in this and other cases and statements made in court:
Pent, and other Paterson police officers, including Eudy Ramos, stopped and searched motor vehicles, without any justification, and stole cash and other items from the occupants of the motor vehicles. Pent, Ramos, and others also illegally stopped and searched individuals in buildings or on the streets of Paterson and seized cash from those individuals.
On Feb. 1, 2017, Pent and Ramos stopped and searched a vehicle in Paterson, detained and handcuffed the occupants, and stole approximately $10,000 from one of the occupants. Pent told Ramos that either they should take all of the money or they should take none of it, and they chose to take all of it. They split the money between themselves. Pent and Ramos subsequently arrested the victim and charged the victim with loitering in a drug area. Pent filled out a prisoner property report for the victim that falsely stated that the victim had approximately $36 on his person. Ramos and Pent submitted an incident report in which they omitted the fact that they had located, and seized, $10,000 from the victim.
A federal grand jury indicted Ramos on March 20, 2019, for his role in the conspiracy and other civil rights and false records charges. His case is pending before U.S. District Judge Katharine S. Hayden.
The conspiracy to violate civil rights charge carries a maximum penalty of 10 years in prison and a fine of $250,000.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s arrest. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
Founder of Lee County-Based Company Sentenced for Wire and Securities FraudRead the Press Release
Montgomery, Alabama – Today, Kyle Geoffrey Sandler, 43, of Auburn, Alabama, was sentenced to 63 months of imprisonment for wire and securities fraud, announced Louis V. Franklin, Sr., U.S. Attorney for the Middle District of Alabama, Joseph P. Borg, Director of the Alabama Securities Commission, and James E. Jewell, Special Agent in Charge for the FBI. Those charges stemmed from a scheme in which he solicited and accepted nearly $2 million from over 70 investors while selling securities of a company that was not registered on a national securities exchange. Sandler’s prison term will be followed by 3 years of supervised release. There is no parole in the federal system. Sandler was also ordered to pay $1,903,000.00 in restitution to his victims.
Evidence showed that from 2015 through 2016, Sandler founded and managed a company called The Roundhouse LLC (Roundhouse), based in Lee County, Alabama. Throughout the Auburn and Opelika communities, Sandler advertised that Roundhouse was a business incubator that helped new and startup companies develop by providing services such as venture capital, office space, 1-gigabit internet, and management training in return for equity in the companies. During the course of his business, Sandler accepted approximately $1.9 million from at least 74 investors and he knowingly sold shares in Roundhouse that were not registered on a national securities exchange. In exchange for the fraudulently obtained investments, Sandler issued stock in Roundhouse and oversold the equity by approximately one hundred percent.
In addition, Sandler made false statements and omitted facts to investors. For example, Sandler misrepresented to potential Roundhouse investors in Lee County that he was a successful entrepreneur who was paid millions of dollars from Google as a former employee although he never actually worked for the tech company. He also failed to disclose to investors that he had two prior criminal convictions based on fraudulent conduct, nor did he tell Roundhouse investors that he was using their funds for personal expenses such as childcare services, rent payments, the purchase of automobiles and other personal items and/or services.
“Mr. Sandler violated the trust of his investors with lies and deception,” said U.S. Attorney Franklin. “They trusted him with their hard earned money, and he used it as his personal piggybank. My office will continue to work with our law enforcement partners to protect the community from these types of schemes.”
Joseph P. Borg, Director of the Alabama Securities Commission said, “The Commission is always proud to work with the U.S. Attorney’s Office, Middle District of Alabama, and the FBI, to protect Alabama citizens from illegal securities offerings and fraudulent activities. Today, the hard work and the collective professional efforts of all enforcement agencies involved provided justice and hopefully sends a message that financial fraud will not be tolerated in Alabama.”
FBI Special Agent in Charge James Jewell stated, “The men and women of the FBI stand ready to fight this type of deception of innocent investors. We appreciate the work of the Alabama Securities Commission as well as the United States Attorney’s Office and look forward to partnering with them in the future to eradicate this type of behavior.”
The case was investigated by the Federal Bureau of Investigation (FBI) and the Alabama Securities Commission. The case was prosecuted by Assistant United States Attorney Denise O. Simpson, Special Assistant United States Attorney Amanda W. Senn, and former Middle District Assistant United States Attorney Steven H. Lee.
Fostering Corporate Cooperation and Communication to Promote the Rule of LawRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain was honored to speak today at the Association of Corporate Counsel of Greater Philadelphia’s Summit for General Counsel and Chief Legal Officers. The event was held at the Loews Philadelphia Hotel. Richard E. Coe, U.S. Attorney McSwain’s former law partner at Drinker Biddle, introduced U.S. Attorney McSwain.
*****
Remarks as Prepared for Delivery
Thank you, Rick, for that kind introduction, and for inviting me to speak today to this distinguished group.
Opportunities like this serve as an important reflection point for me; they give me a reason to set aside some time, outside of the day-to-day hustle and bustle, to pause and think about the goals and priorities that I have for the U.S. Attorney’s Office and force me to evaluate our progress.
Obviously, my main priority, and our core function, is to uphold the rule of law. I firmly believe that building trust between the public and my Office is critical to success in that regard. That’s one of the reasons why I think it’s important to speak at events like this – to let community partners get a sense of who we are as prosecutors; what my Office stands for; and what our mindset is as we work every day to fulfill our mission. And by “community partners,” I am referring today to you and the companies and clients that you work for. You and your colleagues are the business leaders that drive economic growth in the greater Philadelphia area.
Which brings me to the topic of my remarks: fostering cooperation and communication to promote the rule of law. I see today’s summit as an opportunity to convey two important messages.
First, I want to thank you. The work that you do to promote your company’s compliance with federal law is incredibly important. In a way, you serve a crucial law enforcement function every day by working to ensure that your companies comply with the law. You are on the front lines of promoting the rule of law in your organizations. And in performing that function, I want you to know that you have my support and my gratitude.
Now, admittedly, my second message will take a little longer to communicate, even though it is related to the first. In a nutshell, I want you to know that I value communication between your organizations and my Office and I value the cooperation of your organizations with my Office. I want you, our region’s corporate leaders, to consider yourself as a potential partner of my Office in detecting and combatting corporate misconduct and crime.
Let me explain that further.
The spirit of cooperation that I’m talking about is reflected, for example, in some of the recent policy changes implemented at the Department of Justice level. Thanks to a series of initiatives and policy adjustments, the Department is now making white collar prosecutions and enforcement more effective and efficient.
There’s one area in particular that I want to emphasize today – that is, recent changes to the Department’s policies concerning cooperation credit in criminal and civil matters. Most – if not all – of you are familiar with the Yates Memo, which was issued in September 2015 by then-Deputy Attorney General Sally Yates. Broadly speaking, the Memo was designed to seek accountability from individuals for corporate misconduct. As Deputy Attorney General Rod Rosenstein explained when he announced changes to the Yates Memo in November 2018, the revised policy came out of a working group comprised of Department employees, law enforcement agents, and private sector stakeholders. So the changes were the product of collaboration between government and private sector lawyers and communication about priorities, concerns, and past experiences under the Yates Memo and the policy guidance that followed.
The revised policies regarding cooperation credit continue to emphasize – in both criminal and civil cases – the importance of full corporate disclosure and individual accountability. Both are cornerstones of the Department’s approach to dealing with corporate misconduct, but the current policies reflect a more nuanced, common-sense approach to determining when cooperation credit can and should be offered.
The Yates Memo directed DOJ attorneys to offer cooperation credit in criminal and civil matters only if corporations identified and shared with DOJ all relevant facts about the individuals involved in corporate misconduct. Anything considered less than 100% disclosure of every person even tangentially involved and every fact about what they did disqualified the corporation from credit. The result, as Deputy Attorney General Rosenstein acknowledged, was often prolonged, costly investigations that ultimately led to the same result as the current standard – with the government applying notions of fairness and the rule of law to hold only the most responsible parties accountable.
The current policy now creates some flexibility where there was none before, and it reflects the reality inherent in these types of investigations: identifying every single person and every single fact relevant to alleged misconduct is not only impractical, but also unnecessary to achieve the Department’s goals. So, under the current policy, companies can receive cooperation credit in criminal cases where the company has identified every individual “substantially involved in or responsible for the criminal conduct.”
The policy revisions also provide meaningful changes to DOJ’s approach to resolving civil cases. Prior DOJ policy prohibited our civil attorneys from offering any cooperation credit to a company in the civil context unless the company complied with the all-or-nothing approach of the Yates Memo. But now, our civil attorneys have the ability to offer partial cooperation credit in civil cases in certain circumstances, and can offer full cooperation credit when the company identifies those “substantially involved.” As Mr. Rosenstein observed, the binary choice of full credit or no credit embodied in the Yates Memo “delayed resolution while providing little or no benefit.” Instead of furthering the goal in civil cases of recovering money, the prior policy drained our resources and resulted in prolonged investigations.
All told, these and other revisions reflect a measured approach that balances the competing interests at stake. And yes – these policies can promote collaboration and communication between our organizations. How so? Because they afford companies a more realistic path towards receiving credit and allow DOJ attorneys to focus efforts on identifying targets who are the true wrongdoers – those who committed, directed or supervised the underlying misconduct and who warrant punishment. And they restore a measure of discretion to DOJ attorneys in deciding what information they must obtain during an investigation.
These policies promote the sort of deterrence that the Department and my Office want to see in the corporate community. The most effective way to deter corporate misconduct is to punish those individuals who are actually responsible for it – most seriously, those individuals who actually committed a crime. Within your organization, I want you to focus your attention on that and help me and my Office get to the bottom of the issue, as quickly as possible.
As these new policies are applied on a case-by-case basis, rest assured that my Office welcomes an open dialogue with you and your clients as we perform our core function – to enforce the rule of law and ensure that individuals substantially involved in corporate wrongdoing are identified, prosecuted, and punished. I understand that most companies want to do the right thing. And I understand that the people in this room – highly educated and successful legal professionals who take your ethical responsibilities seriously and have taken an oath to uphold the law – certainly want to do the right thing. As Deputy Attorney General Rosenstein has stated: “companies that self-report, cooperate, and remediate the harm they caused will be rewarded. Companies that condone or ignore misconduct will pay the price.” In large part, the choice is up to you, and I hope and expect that you will make the right choice, should you find yourself confronted with it.
The benefits that can flow from open lines of communication and a cooperative approach are clear if your client is the target of a criminal or civil investigation. But these benefits are not limited to that situation. Indeed, I want you to think of my Office as an important ally when your business has been victimized – say, for example, by employees or customers who are stealing from your company. Unfortunately, these situations are all too common. And when they occur, it’s important to view my Office as a critical resource – as a partner whose interests are aligned with yours.
Here are a few examples of what I mean. This past year, my Office prosecuted high-level GlaxoSmithKline employees, scientists who were Chinese nationals, for conspiracy to steal trade secrets from the company. These employees were helping to develop biopharmaceutical products – assets that typically cost in excess of $1 billion to research and develop – and then stealing them from GSK and sending them to China. In doing so, these criminals were attempting to destroy the lifeblood of the company – stealing its intellectual property and engaging in economic warfare.
GSK was an excellent partner with my Office, working shoulder-to-shoulder with our prosecutors and cooperating so that we could collect the necessary information to hold the responsible individuals accountable. And we did just that. Dr. Tao Li, Dr. Yu Xue, and Dr. Yan Mei, were prosecuted for their crimes; all have pled guilty and await sentencing.
Another example of this collaborative approach is found in the insider trading case involving former Philadelphia Eagle, Mychal Kendricks, and his friend, Damilare Sonoiki. Mr. Sonoiki worked at a global investment firm and used material, non-public information to turn an illegal profit, and provided such information to Mr. Kendricks to do the same. Mr. Sonoiki’s former corporate employer fully cooperated with my Office and with the Securities and Exchange Commission during our investigation into this unlawful conduct. The company’s cooperation allowed us to uncover key information, and quickly identify and prosecute the wrongdoers. Mr. Kendricks and Mr. Sonoiki have pleaded guilty and await sentencing.
A good example of a recent crime prevention initiative is our public service campaign to deter Hobbs Act robberies in the Eastern District of Pennsylvania. Our Office is working with local and national convenience stores, drugstores, and fast food chains to alert the public (and criminals) that if you walk into a business and attempt to rob it, we can prosecute that crime federally – and the potential penalties are steep, especially if the crime involves a gun. This partnership is crucial to communicating a unified, powerful deterrent message – that “a federal crime means federal prison time” for the perpetrators. We will continue to work with our corporate partners to create public service announcements and promotional materials that highlight our commitment to keeping our streets and storefronts safe.
In conclusion, we at the U.S. Attorney’s Office take very seriously our responsibility to investigate and prosecute criminals who commit corporate misconduct. As I have pledged from day one, my Office will enforce the law in a fair and non-partisan manner, regardless of who you are, where you come from, or how much power or influence you have. We will apply that neutral principle to corporations and senior leaders who commit crimes or direct others to do so.
But the other takeaway from my remarks today, I hope, is that my Office and I are also here to help you do your job. As I said previously, most companies and their leaders want to do the right thing. Fostering communication and cooperation will only help us get to the right result – which is to hold wrongdoers accountable and to deter misconduct.
Again, I appreciate the opportunity to be with you today. Thank you for your attention, and thank you for your commitment to the rule of law.
Fort Wayne Man Sentenced to 33 Months in Prison and Ordered to Pay $585,652.78Read the Press Release
FORT WAYNE – Gregory Lutz, 49 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Chief Judge Theresa L. Springmann after pleading guilty to wire fraud, announced U.S. Attorney Kirsch.
Lutz was sentenced to 33 months in prison. As part of the sentence, the court, in addition to entering a money judgement in the amount of the proceeds from the scheme ($585,652.740, also ordered restitution to the two victims).
According to documents in the case, between Sept 2016 and May 2018, defendant, employed as controller of a local company, embezzled funds from the company’s bank accounts which he used to wire payments to his debts on his personal credit cards. He concealed his conduct from the employer by whiting out the wire transactions in the company’s bank records and recorded the payments in the company’s books as payment to one of the company’s largest vendor but the numbers were significantly out of sequence and in reality, were never printed signed nor cashed. The amount of the “checks” matched the amount of company funds the defendant used to pay his credit cards each month.
This investigation was conducted by the FBI’s Indiana Financial Crimes Task Force with the assistance of the Indiana State Police. The case was prosecuted by Assistant U. S. Attorney Tina Nommay.
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Former Union Official Pleads Guilty to EmbezzlementRead the Press Release
BOSTON – A former union official pleaded guilty today in federal court in Worcester to embezzlement from Local B-935 of the International Alliance of Theatrical Stage Employees (IATSE).
IIvar Carlson, 58, of Auburn, pleaded guilty to one count of embezzlement from a labor union. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for July 9, 2019. Carlson was charged in December 2018 and released on conditions.
Carlson was the former business agent and treasurer for Local B-935 of the IATSE, which represented workers at the DCU Center in Worcester. From around March 2007 until September 2016, Carlson embezzled approximately $37,014 belonging to Local B-935 by writing checks from the Local B-935’s bank account, cashing those checks, and using the cash for his own personal expenses.
Carlson faces a sentence of no greater than five years in prison, up to three years of supervised release and a fine of up to $10,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jonathan Russo, District Director, U.S. Department of Labor, Office of Labor-Management Standards, made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
Former Oakley Police Chief Pleads Guilty to Wire and Tax FraudRead the Press Release
The former police chief of the Village of Oakley, located in Saginaw County, Michigan, pleaded guilty today to charges of wire fraud and filing a false income tax return for 2012, stated United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge James Dier, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Special Agent in Charge Manny Muriel, Internal Revenue Service, Criminal Investigations (IRS-CI).
Robert J. Reznick, of Swartz Creek, Michigan, pleaded guilty before United States Magistrate Judge Patricia Morris in Bay City, Michigan.
According to court records, Reznick fraudulently used his position as a police chief to obtain reduced prices on firearms, ammunition, and other equipment from suppliers located both in and outside of Michigan. He then sold the merchandise to his “reserve officers” for his personal profit. Though the population of the Village of Oakley, located in Saginaw County, was under 300 people, Reznick recruited and maintained a roster of approximately 120 reserve officers for the Oakley Police Department, most of whom were affluent professionals or otherwise prominent individuals who lived outside of, and distant from, the Village of Oakley. Reznick also used his position as police chief to facilitate the sale of assault shotguns, with the capacity to hold 16 rounds, from an out-of-state vendor for some of his customers and thereby enabled the purchasers of those shotguns to evade the federal and state taxes on the transactions.
In addition to the wire fraud charge, Reznick pleaded guilty to willfully filing a false 2012 federal income tax return, and acknowledged under-reporting his income on tax returns for additional years. The criminal tax loss that resulted from Reznick failing to truthfully report all of his personal income totals approximately $87,702.
“Former Police Chief Reznick’s guilty plea demonstrates that no one is above the law in Michigan — and that includes those who enforce the law,” United States Attorney Matthew Schneider said. “The Justice Department is committed to ensuring that those entrusted with enforcing the law follow it themselves, and when they do not, we will hold them fully accountable.”
“Instead of protecting and serving his community, Robert Reznick made the decision to break the law for personal gain, and in doing so violated the public’s trust. ATF will never waver in our commitment to protecting the community and we will continue to work with our law enforcement partners to hold all citizens accountable.” said ATF Special Agent in Charge James Deir.
Manny Muriel, Special Agent in Charge of the Detroit’s IRS Criminal Investigation, stated, “Mr. Reznick dishonored his position as police chief and victimized the American taxpayers in the process. IRS‐CI will continue to work diligently with our law enforcement partners to investigate fraudulent tax allegations; no matter who is trying to destroy the integrity of our tax system.”
This case was investigated by special agents from both ATF and IRS-CI and is being prosecuted by Assistant U.S. Attorneys from the Flint and Bay City branch offices
Former Massachusetts State Trooper Sentenced to Three Months in Prison for Overtime FraudRead the Press Release
BOSTON – A former Massachusetts State Trooper was sentenced today in federal court in Boston in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).
Gregory Raftery, 47, of Westwood, was sentenced by U.S. District Court Judge William G. Young to 90 days in prison, one year of supervised release, and ordered to pay restitution in the amount of $51,377. In July 2018, Raftery pleaded guilty to one count of embezzling funds from a state agency receiving federal funds.
Raftery admitted that in 2015 and 2016, he was not present and did not work for hundreds of hours of overtime shifts for which he had been paid by the Massachusetts State Police. Raftery admitted that he frequently left overtime shifts early, and, on multiple occasions, did not work overtime shifts at all. To hide his conduct, Raftery submitted bogus motor vehicle citations that were never issued to operators, and then claimed on the citations and internal MSP paperwork that they had been written during overtime shifts that, in reality, Raftery did not work.
Raftery acknowledged that in 2015 he was paid over $24,000, and in 2016, he was paid almost $30,000 for overtime hours that he did not work.
Raftery is the second Trooper to be sentenced as a result of the ongoing investigation. Thus far, eight MSP troopers have been charged and pleaded guilty.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General, made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit are prosecuting the case.
Former Fort Wayne Attorney Sentenced in Federal CourtRead the Press Release
FORT WAYNE – Randall Stiles, 45 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Chief Judge Theresa L. Springmann after pleading guilty to making a false oath in a bankruptcy proceeding, embezzlement from a bankruptcy estate and failure to file a tax return, announced U.S. Attorney Kirsch.
Stiles was sentenced to 6 months in prison and ordered to pay restitution in the amount of $235,055.88 to the Internal Revenue Service and $3,535 to a victim in a bankruptcy case.
According to documents in the case, Stiles was an attorney that practiced in the United States Bankruptcy Court which is a specialized area where lawyers assist individuals in obtaining debt relief based on hard times and financial hardships. Stiles was in a position of trust not only to his clients but to the Court, the Trustee and the legal process. In this case, Stiles’ criminal conduct arose not only from his representation of a client in bankruptcy, but his criminal action in his own personal bankruptcy filing in 2013. Stiles stole from his client, and lied to the Trustee about the filing of his tax return. When faced with possible consequences of his conduct, he did plead to 2 felony counts of bankruptcy fraud and a misdemeanor tax count in September of 2017. Stiles, in his plea, agreed to pay restitution to the client and IRS and agreed to file his unfiled tax returns for 2009, 2010, 2011and 2012. Before the filing of these federal charges, Stiles was suspended indefinitely by the Indiana Supreme Court from the practice of law.
US Attorney Kirsch said, “Attorneys have a duty and obligation to represent their clients fairly and with integrity. Stealing from clients and lying to the court violate the ethics of being an attorney and in this case violated the law. We will utilize all the resources we have available to investigate and prosecute cases involving the breaching of public trust.”
“Criminal bankruptcy fraud threatens the integrity of the bankruptcy system, as well as public confidence in that system,” stated Nancy J. Gargula, U.S. Trustee for Indiana and Central and Southern Illinois (Region 10). “I am grateful to U.S. Attorney Kirsch and our law enforcement partners for their strong commitment to combating bankruptcy- related crimes, especially when committed by persons in a position of trust, as demonstrated by today’s sentencing.” The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
Gabriel Grchan, Special Agent in Charge of IRS Criminal investigation said, "Randy Stiles violated the trust of his clients, the Court, and taxpayers. Mr. Stiles stole from U.S. taxpayers by not reporting or paying his taxes. We will not tolerate willful disregard for tax laws and today's results make that clear."
“Embezzlement is a crime that diverts funds from their original use and won’t be tolerated by the FBI. We all have the right to expect honest representation from those we hire to assist us,” said Danny Youmara, Asst. Special Agent in Charge of the FBI’s Indianapolis Division. “I hope that those few who decide to violate this trust will see the FBI will continue to investigate and pursue those who enrich themselves at the expense of others and we will hold them accountable.”
The case against Stiles resulted from a referral by the United States Trustee for Indiana and Southern and Central Illinois (Region 10) to the U.S. Attorney for the Northern District of Indiana. The investigation was conducted by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation Division in collaboration with the Northern Indiana Bankruptcy Fraud Working Group, which is coordinated by the United States Trustee. The case was prosecuted by Assistant U. S. Attorneys Tina Nommay and Deborah Leonard.
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Former Department of Defense Employee Sentenced to Ten Years for Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Mohammad Abdul Malek (68, St. Marys, GA) to 10 years in federal prison for attempted enticement and coercion of a minor to engage in sexual activity. Malek pleaded guilty on October 30, 2018.
According to court documents, between August 23 and August 26, 2018, Malek engaged in email and text communications with an undercover agent posing as a 13 year-old girl. Malek asked for photos of the “child” and told her he wanted to teach her about “making love.” Malek was advised and acknowledged that the “child” was a minor, and he suggested that they meet to engage in sex. On August 26, 2018, Malek traveled to Jacksonville to meet the “child,” and was arrested by officers from the Jacksonville Sheriff’s Office.
“This child predator thought he was traveling to sexually assault a child,” said HSI Tampa Special Agent in Charge James C. Spero. “Instead, he was met by undercover law enforcement who stopped him in his tracks.”
This case was investigated by the Jacksonville Sheriff’s Office and U.S. Immigration and Custom Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Ashley Washington.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Dentist Sentenced to More than 10 Years’ Imprisonment for Drug Trafficking and Possession of Child PornographyRead the Press Release
Earlier today, John Wolf, a former Manhattan dentist, was sentenced in federal court in Brooklyn to 121 months’ imprisonment by United States District Judge William F. Kuntz II for conspiring to distribute methamphetamine and possessing child pornography. As part of his sentence, Wolf must serve 10 years’ supervised release following his imprisonment and not have unsupervised contact with minors. Wolf will also be required to register as a sex offender upon his release from prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York (DEA), announced the sentence.
“Wolf was once a successful dentist who now finds himself deservedly confined behind prison walls for conspiring to distribute dangerous drugs and sharing images of children being subjected to sexual violence,” stated United States Attorney Donoghue. “Today’s sentence reflects the seriousness of the defendant’s crimes and demonstrates the commitment of the Department of Justice to protecting the community.” Mr. Donoghue expressed his grateful appreciation to the FBI’s New York Violent Crimes Against Children International Task Force for leading the investigation.
Wolf pleaded guilty in October 2017 to conspiracy to possess with intent to distribute methamphetamine and possession of child pornography. During the investigation, the defendant was consensually recorded discussing distribution of methamphetamine and provided child pornography to a person who, unbeknownst to him, was an undercover FBI agent. The child pornography included depictions of toddlers being raped by adult men.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Moira Kim Penza is in charge of the prosecution.
The Defendant:
JOHN WOLF
Age: 62
Residence: New York, New YorkE.D.N.Y. Docket No. 15-CR-624 (WFK)
Final Defendant in Virginia Beach Fentanyl Ring SentencedRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to more than 11 years in prison for his role in a heroin and fentanyl distribution conspiracy that resulted in an overdose death.
According to court documents, Christopher Allen Bardall, 34, sold at least 550 grams of fentanyl, which could translate to approximately 5,500 individual doses. He did so as a part of conspiracy with Michelle Best, whose drugs killed one young woman, K.R., and caused several other non-fatal overdoses. Best was sentenced on March 14 to 30 years in prison.
Bardall was a street dealer who distributed fentanyl, supplied by Best, directly to K.R. Bardall knew the fentanyl he was dealing was strong and that it had resulted in multiple overdoses by clients of his who used it. On Dec. 17, 2017, within hours of K.R.’s coma and death, officers from the Virginia Beach Police Department located Bardall and arrested him after a vehicle and foot pursuit.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorneys John F. Butler and Andrew C. Bosse prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-147-3.
Federal Jury Convicts Two Defendants of Narcotics and Money Laundering ConspiraciesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Martha Aguirre, 47, of Orange, California, and Juan Alfaro, 54, of Hacienda, California, of narcotics conspiracy and money laundering conspiracy. The charges carry a mandatory minimum penalty of 10 years in prison and a maximum of life in prison.
Assistant U.S. Attorneys Patricia Astorga and Wei Xiang, who handled the trial, stated that the defendants were members of a transnational drug trafficking organization that utilized contacts and a source of supply whose territory included Mexico, Arizona, California, and elsewhere. The source of supply was the Sinaloa Cartel, led by Joaquín “El Chapo” Guzmán and Ismael “El Mayo” Zambada. Martha Aguirre’s brother Herman E. Aguirre was the leader of the organization.
Martha Aguirre and Alfaro used “front” companies to launder over $12,000,000 in drug proceeds from Buffalo to Los Angeles, including Triton Foods, Inc. and Kamora Investment Enterprises, Inc., which were located in the State of California. Another fictitious company, Corral Seafoods, LLC, registered in the State of New York, was allegedly located in Cheektowaga, NY, but proved to be completely fake.
Using these companies, the defendants disguised kilogram quantities of heroin, fentanyl, and cocaine described on invoice and other documents as “Sea Cucumbers.” The local organization trafficked thousands of kilograms of illegal narcotics throughout the United States, including Lockport, Niagara Falls, and Buffalo.
During the course of the investigation, law enforcement officers seized over $5,000,000 worth of illegal narcotics, including:
• 52.5 kilograms of cocaine; • 17.5 kilograms of heroin; and
• 8.5 kilograms of fentanylUsing standard dosage amounts, the seized drugs potentially represented over 1,500,000 “hits” of cocaine, and 2,700,000 “hits” of heroin and considering that two milligrams of fentanyl can be a lethal dose, enough fentanyl potentially to kill over four million people.
Martha Aguirre and Alfaro were indicted along with 15 others including:
• Herman E. Aguirre was convicted following a jury trial and is awaiting sentencing; • Troy R. Gillon was convicted following a jury trial and is awaiting sentencing; • Jose Ruben Gil, a/k/a Unc, a/k/a Ruben Gil Campos, a/k/a Mayor of Mexico, was convicted and is awaiting sentencing; • Sonia Hernandez, was convicted and is awaiting sentencing; • Margaret Banuelos, a/k/a Lisa, was convicted and is awaiting sentencing; • Darryl J. Williams, a/k/a D, was convicted and is awaiting sentencing; • Trent Adair Hamilton, was convicted and is awaiting sentencing; • Michael Paul Mitchell, was convicted and is awaiting sentencing; • Demetrius Yarborough, a/k/a Tu, was convicted and is awaiting sentencing; • Rashawn Crule, a/k/a Black, a/k/a Shawn, was convicted and is awaiting sentencing; • Maulana Lucas, a/k/a Big Daddy, a/k/a Shabazz, was convicted and is awaiting sentencing; • Shirley Grigsby, was convicted and is awaiting sentencing; • Ralik Hamilton; was convicted and is awaiting sentencing; • Dion Cheatham, was convicted and is awaiting sentencing; and
• Joseph Thompson, a/k/a Jo-Jo, a/k/a Skools, a/k/a Skoolboy, convicted and sentenced.“Today’s verdict represents the coup de grace in the demise of a once flourishing, multi-million dollar, international drug trafficking conspiracy,” noted U.S. Attorney Kennedy. “The volume of drugs moved by this organization endangered the health and welfare of countless Americans, including many here in Western New York. I commend the work of the federal, state, and local law enforcement officers from across our country who, together with the tremendous prosecutors in this Office, worked tirelessly to deliver justice to 17 individuals who sought to deliver poison throughout our Nation.”
The verdict is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Acting Special Agent-in-Charge, New York Field Office; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special-Agent-in Charge Kevin Kelly; the Niagara County Drug Task Force, under the direction of Sheriff James Voutour; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Lockport Police Department, under the direction of Acting Chief Steven Preisch; the Montebello, California Police Department, the Nebraska State Patrol, and the DEA, Los Angeles.
Both will be sentenced on a date to be determined before U.S. District Judge Lawrence J. Vilardo, who presided over the trial of the case.
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East Orange, New Jersey, Man Charged with Money LaunderingRead the Press Release
NEWARK, N.J. – An East Orange, New Jersey, man was charged today with conspiring to transact in criminal proceeds involving $2.36 million in funds obtained through a business email scheme, U.S. Attorney Craig Carpenito announced.
Samora Patterson, 40, is charged by complaint with one count of conspiring to transact in criminal proceeds. He is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the complaint:
In March 2015, three related real estate companies entered into a multi-million dollar transaction to sell certain commercial real estate properties. “Title Company A” was the closing agent for the transaction.
On May 7, 2015, immediately before the transaction was scheduled to close, hackers impersonating the president of the three real estate companies sent a fraudulent email to Title Company A with wire instructions for the net closing proceeds. The fraudulent wire instructions directed Title Company A to wire $2.36 million to an account controlled by Patterson. Over the next several days, Patterson withdrew the $2.36 million from his account through cashier’s checks and cash.
The count with which Patterson is charged carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.U .S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Sean M. Sherman of the U.S. Attorney’s Office Public Protection Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Eagle Butte Woman Indicted for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Possession of a Controlled Substance with Intent to Distribute Methamphetamine and Maintaining a Drug Involved Premises.
Andrea Circle Bear, a/k/a Andrea High Bear, age 29, was indicted on March 12, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on March 21, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in prison, and/or a $1,000,000 fine, at least 3 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 24, 2018, and April 30, 2018, Circle Bear possessed methamphetamine with intent to distribute it and maintained a place for the purpose of distributing methamphetamine.
The charges are merely accusations and Circle Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Circle Bear was released on bond pending trial. A trial date has not been set.
Denver Doctor Charged with Transportation of Child Pornography and in Federal CustodyRead the Press Release
DENVER – The United States Attorney for the District of Colorado has obtained a criminal complaint against a doctor practicing family medicine in Colorado, charging him with the transportation of child pornography, U.S. Attorney Jason Dunn and FBI Denver Division Special Agent in Charge Dean Phillips announced. Justin Bowen Neisler, age 31, of Denver was arrested without incident by the FBI on March 13, 2019, and was ordered detained today by the United States District Court for the District of Colorado. Neisler will be detained while awaiting further proceedings.
Dr. Neisler was arrested after a search of his residence in Denver. According to information contained in the Application for a Search Warrant, the FBI received information from the National Center for Missing and Exploited Children (NCMEC) that someone using an IP address associated with Dr. Neisler’s residence uploaded sexually explicit videos and/or images of children onto a social media platform. According to publicly available information, Dr. Neisler has been licensed to practice medicine in Colorado and Georgia since 2016. He has been affiliated with the Centura Health and HCA-HealthONE networks.
The investigation is ongoing into the alleged offense and other federal criminal child exploitation offenses, including the production of child pornography. Anyone having information relevant to this investigation is encouraged to contact the FBI by sending an email to [email protected] or by calling 303-629-7171 x 1.
If convicted of the charge contained in the criminal complaint, Dr. Neisler faces not less than 5 years and not more than 20 years’ imprisonment and up to a $250,000 fine. He also faces not less than 5 years and not more than life on supervised release.
The charge is an allegation, and the defendant is presumed innocent unless and until proven guilty.
This matter is part of Project Safe Childhood (PSC), 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, PSC coordinates 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 PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Colombo Crime Family Soldier Pleads Guilty to RacketeeringRead the Press Release
Earlier today, Jerry Ciauri, also known as “Fat Jerry,” an inducted member of the Colombo organized crime family (the Colombo family), pleaded guilty before United States District Judge William F. Kuntz II to racketeering, including predicate acts of extortionate collection of extensions of credit. Another inducted member of the Colombo family, Vito Difalco, also known as “Victor” and “The Mask,” and two Colombo family associates, Salvatore Disano and Joseph Maratea, pleaded guilty to racketeering last week. On March 15, 2019, Joseph Rizzo, an associate of the Colombo family, pleaded guilty to stalking conspiracy. The defendants’ criminal activities took place in Brooklyn, Staten Island and elsewhere between March 2017 and June 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.
According to court filings and facts presented during the guilty plea proceeding, Ciauri made extortionate loans and used extortionate means to collect payments on those loans from six victims. In connection with this loansharking business, Ciauri once threatened to shoot a loansharking partner who had fallen behind making payments to Ciauri, and on another occasion, enlisted an associate to slash a victim’s tires in the middle of the night. Disano assisted Ciauri in collecting debts enforced with extortionate means. Rizzo and Ciauri also stalked Ciauri’s former loansharking business partner after he started to cooperate with law enforcement officers and stopped assisting Ciauri with the business.
Difalco and Maratea also ran a loansharking business. In connection with that business, Difalco used extortionate means to collect debts from eight victims, and Maratea helped collect debts from five of those victims. In one conversation, Difalco threatened a loansharking victim by telling him that he had a past history of setting fire to the cars of those who failed to make timely payments; Difalco told the victim, “Good things happen to me when I stay calm see like I was by your house the other day…. Four years ago, I would have put the Benz on fire.”
When sentenced, Ciauri, Difalco, Disano and Maratea face up to 20 years’ imprisonment. Rizzo faces a maximum of five years on the stalking conspiracy charge.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Elizabeth A. Geddes and Mathew S. Miller are in charge of the prosecution.
The Defendants:
JERRY CIAURI (also known as “Fat Jerry”)
Age: 59
Brooklyn, New YorkVITO DIFALCO (also known as “Victor” and “The Mask”)
Age: 63
Brooklyn, New YorkSALVATORE DISANO
Age: 48
Brooklyn, New YorkJOSEPH MARATEA
Age: 42
Brooklyn, New YorkJOSEPH RIZZO
Age: 51
Staten Island, New YorkE.D.N.Y. Docket No. 18-CR-337 (WFK)
Clarksburg man gets life for his role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Rocky Douglas Idleman, of Clarksburg, West Virginia, was sentenced today to life plus 60 months incarceration for methamphetamine distribution and firearms charges, United States Attorney Bill Powell announced.
Idleman, age 39, was found guilty of one count of “Conspiracy to Distribute More Than 50 Grams of Methamphetamine,” one count of “Distribution of Methamphetamine,” two counts of “Unlawful Possession of Firearm,” and one count of “Carry a Firearm During a Drug Trafficking Crime” after a three-day trial in October 2018. Idleman committed the crimes from March 2016 to September 2017 in Upshur County and elsewhere.
“Methamphetamine is an ever-increasing problem in our district and often causes violent behavior. The addition of firearms further enhances the risk of violence. The life sentence handed down by the court was just and sends a very strong message about how these crimes will be prosecuted. We will continue to aggressively prosecute those who flaunt our laws to the detriment of our communities,” said Powell.
“Drug dealers with guns are violent criminals who pose an increased threat to the safety of our communities,” stated ATF Special Agent in Charge Stuart Lowrey of the Louisville Field Division. “ATF, strives to be ‘no better partner’ to federal, state, and local law enforcement agencies. Together, we will continue to aggressively investigate, arrest and pursue prosecution of these offenders. Our shared commitment to reducing violent crime continues to make West Virginia safer for everyone.”
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 Drug Enforcement Administration; The Mountain Region Drug & Violent Crimes Task Force, composed of the Randolph County Sheriff’s Office, Elkins Police Department, U.S. Forest Service, and Tucker County Sheriff’s Office; the Greater Harrison Drug & Violent Crimes 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.
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.
Christopher Forster Sentenced and Ordered to pay $1,414,030 in RestitutionRead the Press Release
HAMMOND – Christopher Forster, 31 years old, of Valparaiso, Indiana, was sentenced by U.S. District Court Judge Jon E. DeGuilio after pleading guilty to interstate transportation of stolen property, announced U.S. Attorney Kirsch.
Forster was sentenced to 15 months in prison and was ordered to pay $1,414,030 in restitution to Arcelor Mittal.
According to documents in the case, between August 2013 and March 2014, Forster and others stole a metal alloy called Ferro Columbium from Arcelor Mittal property and transported it across state lines to sell for profit.
This case was investigated by the FBI GRIT Task Force and prosecuted by Assistant United States Attorney Jennifer Chang.
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Chicago Man Sentenced for Possessing Crack Cocaine with Intent to DistributeRead the Press Release
United States Attorney Ron Parsons announced that a Chicago, Illinois, man convicted of possession of crack cocaine with the intent to distribute it was sentenced on March 25, 2019, by U.S. District Judge Karen E. Schreier.
Charles Marshall Smith, a/k/a “Blue,” age 36, was sentenced to 262 months in federal prison, to be followed by 10 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Smith was indicted for Possession With Intent to Distribute a Controlled Substance by a federal grand jury on November 7, 2017. He pled guilty on November 27, 2018.
On September 5, 2017, Sioux Falls Area Drug Task Force detectives executed a search warrant for Smith’s residence in Sioux Falls, South Dakota. They located 327.9 grams of crack cocaine and 73.4 grams of heroin in the home, which Smith intended to distribute to others in South Dakota.
This case was investigated by the Sioux Falls Area Drug Task Force, Sioux Falls Police Department, South Dakota Highway Patrol, and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Smith was immediately turned over to the custody of the U.S. Marshals Service.
Charleston Meth Dealer Pleads Guilty to Federal Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. -- A Charleston methamphetamine dealer pled guilty today to federal drug and firearm offenses, announced United States Attorney Mike Stuart. Gregory Alan Johns, 37, entered his guilty plea to possession with the intent to distribute over 50 grams of methamphetamine, possessing firearms in furtherance of drug trafficking, and being a felon in possession of a firearm. The investigation was conducted by the Charleston Police Department’s Special Enforcement Unit, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
“Another week, another meth dealer and felon with guns convicted,” said United States Attorney Mike Stuart. “We are strategically focused on eradicating violent criminals like Johns from Charleston’s west side, so there will be many more cases to come.”
Johns admitted that on September 13, 2017, a search warrant was executed at his residence on the West Side of Charleston, West Virginia. During the search of his residence, detectives located three firearms in his bedroom and a safe which contained fifty grams or more of methamphetamine which Johns intended to distribute. Johns admitted that he possessed the firearms to protect himself and the drugs. He also admitted that he was not legally permitted to possess the firearms because he was convicted of burglary in Jackson County, West Virginia in 2009.
Johns faces up to life in federal prison when he is sentenced on July 11, 2019. United States District Judge Irene C. Berger presided over the plea hearing. Assistant United States Attorney Ryan A. Saunders is handling the prosecution.
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.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Charleston Man Pleads Guilty to Drug Distribution While on Supervised ReleaseRead the Press Release
CHARLESTON, W.Va. – A Charleston man who sold heroin while on federal supervised release for a prior felony drug conviction pled guilty today, announced United States Attorney Michael B. Stuart. Stalin Simon, 47, entered his guilty plea to distribution of heroin. The Williamstown Police Department conducted the investigation.
“Simon must not have served enough time for his previous federal drug conviction,” said United States Attorney Mike Stuart. “He couldn’t even wait until he had finished his term of supervised release before he picked up where he left off as a drug dealer. We’re sending him back to federal prison.”
Simon admitted that on January 18, 2019, his vehicle was stopped by a police officer with the Williamstown Police Department. During a search of the vehicle, police officers seized a distribution quantity of heroin in addition to suspected marijuana and Xanax pills. Simon admitted to the charged drug trafficking activity. Simon was serving a term of federal supervised release for a prior federal felony drug conviction at the time his vehicle was stopped in Williamstown, West Virginia.
Simon faces up to 20 years in federal prison on the heroin charge when he is sentenced on August 6, 2019. He also faces up to two years in prison for violating his federal supervised release.
Assistant United States Attorney Andrew J. Tessman is responsible for the prosecution. Senior United States District Judge David A. Faber presided over the plea hearing.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Bergen County, New Jersey, Man Charged with Bankruptcy FraudRead the Press Release
NEWARK N.J. – A Bergen County, New Jersey, man was charged today with making false declarations in relation to a bankruptcy proceeding, U.S. Attorney Craig Carpenito announced.
Victor Osorio, 40, of Cresskill, New Jersey, is charged by complaint with two counts of bankruptcy fraud. He is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to documents filed in this case and statements made in court:
On Feb. 16, 2017, Osorio filed a voluntary petition for relief under Chapter 7 of the Bankruptcy Code in U.S. Bankruptcy Court for the District of New Jersey. Osorio signed the bankruptcy petition under penalty of perjury, declaring that the information provided was true and correct.
In the petition, Osorio stated that none of his affiliates had a pending bankruptcy case, failing to disclose that a business in which he had an interest, “Business 1,” had a bankruptcy case pending at the time in U.S. Bankruptcy Court for the Southern District of New York.
Osorio also filed Schedules of Assets and Liabilities, signed under penalty of perjury, in which he stated that he did not own or have an interest in any incorporated or unincorporated businesses. Osorio failed to disclose that he had an ownership interest in Business 1 – and he had declared approximately seven months earlier in Business 1’s bankruptcy documents that he was its sole owner – and had an ownership interest in another business, Business 2.
In the Schedules, Osorio also stated that he did not own or have an interest in any checking, savings or other financial accounts, failing to disclose a bank account with a bank based in the Dominican Republic in which he had an interest.
On Feb. 24, 2017, Osorio filed amendments to the schedules, disclosing a partial ownership interest in Business 1. However, the amendments still failed to disclose an ownership interest in Business 2 and the bank account in the Dominican Republic.
The bankruptcy fraud charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited New York City Police Department detectives, under the direction of New York City Police Department Commissioner Paul P. O’Neill, assigned to the Homeland Security Investigations Border Security Enforcement Task Force (BEST); and special agents of HSI-New York, under the direction of Special Agent in Charge Angel M. Melendez, assigned to HSI/NY BEST, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Dara Govan, Chief of the U.S. Attorney’s Office Public Protection Unit in Newark; Assistant U.S. Attorney Sean M. Sherman, of the Public Protection Unit; and Special Assistant U.S. Attorney Ben Teich of the Economic Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Armed Trafficker Sentenced to Six Years in PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that William Cooke, 22, of Rochester, NY, who was convicted of possession with intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking crime, was sentenced to serve 72 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Charles Moynihan, who handled the case, stated that Cooke was arrested after Rochester police officers stopped a car, in which Cooke was riding, in the area of Scrantom Street and Conkey Avenue. As officers stopped the car, the defendant jumped from the rear passenger seat and fled, causing officers to chase after him. During the chase, officers could see a black object in Cooke’s hand as he pulled his hand half way from his jacket pocket. Officers only lost sight of Cooke for a brief period of time during the chase as he rounded the corner of a house on Clifford Avenue.
After apprehending the defendant, officers found a loaded defaced semiautomatic pistol on the ground in the area where officers momentarily lost sight of Cooke. Officers arrested Cooke and placed him in a room at the Clinton Section police offices. While the defendant was in the room, officers could see him through the use of a video camera surveillance system climb onto a table in the room. Officers quickly confronted Cooke, who was already sitting back down when they entered the room. However, officers could see blue bags protruding from the ceiling and electrical junction above the table where Cooke was standing moments before. Officers removed a total of 27 baggies of suspected heroin. Subsequent testing determined the substance was fentanyl and acetyl-fentanyl.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. 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.
Today’s sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Mark Simmons, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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