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Monday 11 February 2019
Project Safe Neighborhoods Initiative Leads to 10-Year Sentence for Man Convicted of Armed RobberyRead the Press Release
CHARLOTTE, N.C. – Octavius DeJuan Phillips, 30, of Gastonia, N.C., was sentenced to 121 months in prison and three years of supervised release on armed robbery charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. presided over the sentencing.
According to filed documents and statements made in court, on August 26, 2017, Phillips committed a robbery at the Family Dollar store located at 3400 Wilkinson Boulevard, in Charlotte. Court records show that Phillips entered the store at 9:54 a.m., armed with a silver handgun. Phillips approached the store clerk, pointed his firearm at the employee and demanded money from the register. The store clerk complied and Phillips fled the scene with the store’s money. He was apprehended the same day in Pineville, N.C. In October 2018, Phillips pleaded guilty to Hobbs Act robbery and brandishing a firearm during, in relation to, and in furtherance of a crime of violence. Court records show that Phillips has a previous felony drug conviction and multiple assault convictions.
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In a separate case, Quincy Lamonte Love, 27, Kannapolis, N.C., was sentenced to 60 months in prison, followed by three years of supervised release for possession of a firearm in furtherance of a drug trafficking offense. According to court records, on March 27, 2017, law enforcement found Love inside of a car with drugs and firearms. Following Love’s arrest, law enforcement seized a Glock, model 42, .380 caliber pistol and a Desert Eagle, .45 caliber pistol. Love has previous felony convictions and is prohibited from possessing firearms.
In making today’s announcement U.S. Attorney Murray commended the FBI and the Charlotte-Mecklenburg Police Department (CMPD) for investigating Phillips’ case, and thanked U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and CMPD for conducting the investigation into Love.
Assistant U.S. Attorney Erik Lindahl, of the U.S. Attorney’s office in Charlotte, prosecuted both cases.
These cases have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Plum Twp. Man Sentenced to More than 3 Years in Prison for Robbing Mt. Washington BankRead the Press Release
PITTSBURGH, Pa. – A resident of Plum Township, Pennsylvania, has been sentenced in federal court to a term of imprisonment of three years and four months, to be followed by three years of supervised release, on his conviction on a charge of bank robbery, United States Attorney Scott W. Brady announced today.
Senior United States District Court Judge David S. Cercone imposed the sentence on Matthew Gallo, 35.
According to information presented to the court, on December 4, 2017, an individual, later identified as the Defendant, robbed the First National Bank in the Mt. Washington section of the City of Pittsburgh. He fled the bank with $730.00 before authorities could apprehend him. Surveillance photos from the robbery were shown on the local news. FBI received two separate tips identifying Matthew Gallo as the individual responsible for the bank robbery. On January 10, 2018, Allegheny County Sheriff’s personnel arrested Gallo on an unrelated matter. Gallo later confessed to committing the bank robbery. Gallo was also shown a surveillance photograph of the bank robber and signed the back of a photograph identifying himself as the robber.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, City of Pittsburgh Bureau of Police and the Allegheny County Sheriff’s Office conducted the investigation in this case through Project Safe Neighborhoods.
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.
Pittsburgh Man Pleads Guilty to Defrauding Local BanksRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has pleaded guilty in federal court on a charge of fraud conspiracy, United States Attorney Scott W. Brady announced today.
Deshaun A. McGeorge, 27, pleaded guilty to one count before United States District Judge David S. Cercone.
According to the indictment, McGeorge and others agreed to defraud Pittsburgh area banks by depositing counterfeit checks by remote mobile deposit, and then making a series of withdrawals against funds credited from the deposited checks.
Judge Cercone scheduled the sentence for sentencing for June 18, 2019 at 11 a.m. The law provides for a maximum total sentence of not more than 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci and Shanicka L. Kennedy are prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of this defendant. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Okmulgee Man Sentenced to 40 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brett Wayne Pigeon, age 32, of Okmulgee, Oklahoma, was sentenced to 40 months imprisonment and 3 years of supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Okmulgee Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about March 23, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed a Charles Daly, 12 gauge pump action shotgun, serial number 950658, a firearm which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “The safety of the public is the top priority of federal, state, local and tribal law enforcement agencies. When agencies work together, as the OPD and ATF did in this case, we are able to maximize our impact and resources and make the communities we serve safer.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Ohio County resident admits to failing to update his sex offender registrationRead the Press Release
WHEELING, WEST VIRGINIA – Joshua Phillip Sweet, of Triadelphia, West Virginia, has admitted to moving to West Virginia without updating his sex offender registration, United States Attorney Bill Powell announced.
Sweet, age 37, pled guilty to one count of “Failure to Update Sex Offender Registration.” Sweet admitted to moving from Niagra Falls, New York, to Triadelphia, West Virginia in July 2017 and not updating his sex offender registration, as required by law.
Sweet is 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 Brandon S. Flower is prosecuting the case on behalf of the government. The United States Marshal Service and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Northshore Mortgage Broker Sentenced to Making False Statements to the Social Security AdministrationRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JAMES BRIANT, age 68, a resident of Covington, Louisiana and mortgage broker and senior loan officer at Alpha Mortgage, LLC was sentenced Thursday, February 7, 2019 to three years probation for making false statements to the Social Security Administration (SSA) in order to obtain Social Security Disability Payments. BRIANT was also ordered to pay approximately $134,000 in restitution to the Social Security Administration.
According to court documents, from on or about June 10, 2010, the defendant, BRIANT, applied for disability benefits from the Social Security Administration, a department and agency of the United States, for a back disorder and heart disease. Thereafter, in December of 2011, he began receiving monthly disability benefits of approximately $2,370, based on the representation that he was unable to work. During the time he received disability payments, the defendant, BRIANT, had an obligation to report any income he made to the SSA.
At a time unknown, but prior to September 2012, the defendant, BRIANT, began working as a loan officer and mortgage broker at Alpha Mortgage, L.L.C, earning a salary. He worked there through in or around June 2017 and never reported to the SSA that he was working or earned any income. On or about December 15, 2015, BRIANT completed a Social Security Disability form specifically, an SSA-Form 795, “Statement of Claimant” and submitted it to the SSA. In this statement, he signed and certified, under penalty of perjury that he had not worked since 2011, knowing full well that this statement was materially false, fictitious, and fraudulent.
U.S. Attorney Strasser commended special agents of the Social Security Administration, Office of Inspector General, who investigated the case and Assistant U.S. Attorney Sharan Lieberman, who is in charge of the prosecution.
Nine Men Charged with Robbing PharmaciesRead the Press Release
COLUMBUS, Ohio – A federal grand jury here has charged nine Southern Ohio men with crimes related to the armed robberies of 11 Ohio pharmacies.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Roland Herndon, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the charges that were unsealed today.
According to the indictment, from April to October 2018, co-conspirators would present demand notes at pharmacies that stated they were completing an armed robbery and they would kill the employees of the pharmacy if the employees did not comply with demands for narcotics listed in the note.
The robberies occurred on:
April 16, 2018, at Rite Aid on Linden Avenue in Dayton;
April 26, 2018, at Rite Aid on McAdams Drive in New Carlisle;
May 22, 2018, at CVS on Sawmill Road in Columbus;
June 2, 2018, at CVS on Montgomery Road in Norwood;
June 7, 2018, at CVS on Montgomery Road in Silverton;
July 5, 2018, at Rite Aid on North Wolfe Creek Street in Brookeville;
August 4, 2018, at Rite Aid on West National Road in Vandalia;
August 8, 2018, at Rite Aid on South Allison Avenue in Xenia;
August 17, 2018, at Rite Aid on Central Avenue in Middletown;
September 5, 2018, at Rite Aid on Linden Avenue in Dayton; and
October 15, 2018, at Rite Aid on Union Boulevard in Englewood.
Those charged include:
Name
Age
City of Residence
Courtney A. Byrd
21
Trotwood
Damar L. Kerley
21
Dayton
James P. Taylor, Jr.
19
Dayton
Cameron D. Redd
21
Cincinnati
Ja’Mical L. Betts
20
Dayton
Dasean Whitehead
19
Dayton
Justin J. Jefferson, Jr.
19
Dayton
Rodney A. Robbins II
19
Trotwood
Philmore B.P. Alexander IV
19
Dayton
Defendants are charged with conspiring to commit Hobbs Act Robbery, interfering with interstate commerce by robbery and possessing with the intent to distribute Oxycodone. Each of the three crimes is punishable by up to 20 years in prison.
U.S. Attorney Glassman commended the cooperative investigation of this case by ATF, the Columbus, Dayton, Norwood, Brookeville, Vandalia, Xenia, Middletown and Englewood police departments, Clark County, Montgomery County and Hamilton County sheriff’s offices and the Montgomery County Prosecutor’s Office, as well as Assistant United States Attorneys David J. Bosley and Kelly Norris, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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New Orleans Man Sentenced for Narcotics ChargesRead the Press Release
NEW ORLEANS–U.S. Attorney Peter G. Strasser announced that MARVIN ARMSTRONG, age 32, of New Orleans, was sentenced for heroin charges.
According to court documents, ARMSTRONG conspired with others to distribute between 100 and 400 grams of a mixture or substance containing a detectable amount of heroin, and distributed approximately 7 grams of a mixture or substance containing a detectable amount of heroin.
U.S. District Judge Eldon E. Fallon sentenced ARMSTRONG to 68 months incarceration, to be followed by 3 years of supervised release. ARMSTRONG was also ordered to pay a $100.000 special assessment.
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.
U. S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New Orleans Police Department, and the Louisiana State Police in investigating this matter. The case is being prosecuted by Assistant United States Attorneys Maria M. Carboni and Matthew R. Payne.
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New Haven Heroin Dealer Sentenced to Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CURTIS DRAUGHN, also known as “Kirk,” 63, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 15 months of imprisonment, followed by three years of supervised release, for distributing heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, following the December 2016 overdose death of a 33-year-old New Haven man, investigators determined that the victim had called “Kirk” prior to his overdose. In May 2017, investigators contacted “Kirk,” who was identified to be Draughn, asking about purchasing heroin. In May, June and August 2017, investigators made three controlled purchases of heroin from Draughn.
Draughn was arrested on October 25, 2017. On October 23, 2018, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Mexican National Pleads Guilty to Marijuana Cultivation in Protected Kern County Kiavah WildernessRead the Press Release
FRESNO, Calif. — Rodolfo Torres-Galvan, 29, (Torres), a native and citizen of Mexico, pleaded guilty today to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, U.S. Attorney McGregor W. Scott announced. He is the second co-conspirator to enter a guilty plea in this case.
According to court documents, Torres and his co-defendants, Mauricio Vaca-Bucio, 31, and Felipe Angeles Valdez-Colima, 35, were apprehended after a two-month investigation in the Kiavah Wilderness, a federally designated wilderness area in the Sequoia National Forest. Law enforcement officers saw Torres and Valdez emerge from the forest and enter a Camaro driven by Vaca. They were subsequently stopped in Weldon. Officers found freshly harvested marijuana in the Camaro and located over 1,800 marijuana plants at the grow site on the trail that led to the drop point. The officers also found deadly illegal pesticides, including carbofuran and zinc phosphide, in both the vehicle and at the grow site. In pleading guilty, Torres agreed to pay over $7,000 in restitution to the U.S. Forest Service for the environmental damage caused to the National Forest.
The United States Congress designated the Kiavah Wilderness in 1994, and it is managed by the Bureau of Land Management and the Forest Service. This wilderness area is part of the National Cooperative Land and Wildlife Management Area and the Bureau of Land Management’s Jawbone-Butterbredt Area of Critical Environmental Concern.
This case is the product of an investigation by the U.S. Forest Service with assistance from Enforcement and Removal Operations of Immigration and Customs Enforcement (ICE), Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, California National Guard, Kern County Sheriff’s Office, and Kern County Probation Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Torres is scheduled for sentencing on April 29, 2019. Valdez pleaded guilty in January and is scheduled for sentencing on April 22, 2019. They face a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges against Vaca are pending and are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Members of Ohio Militia Group Charged with Possessing Unregistered ExplosivesRead the Press Release
CINCINNATI – A federal grand jury has charged two members of an Ohio militia group with violating the National Firearms Act in an indictment unsealed here today.
Ryan D. King, 37, of Franklin, Ohio and Randy D. Goodman, 53, of Ripley, Ohio, were each charged with two counts related to possessing unregistered explosive devices. King and Goodman were both arrested today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges.
According to the indictment, King and Goodman were members of a militia group operating in the Southern District of Ohio. King and Goodman established a small subset of the militia group and referred to it as the “Special Projects Team.” The defendants advocated that this Team construct, use and stockpile explosives they called “crater makers.”
The defendants allegedly conspired to possess and possessed destructive devices in violation of the National Firearms Act, specifically, bombs and parts necessary to make pipe bombs.
In January 2019, King and Goodman allegedly tested their “crater makers” at Goodman’s home in Ripley, Ohio. They discussed construction and ignition methods in detail. Goodman referenced the Boston Marathon as an example of a remote detonation system that worked.
They discussed which methods would be most lethal.
For example, Goodman asked, “Do we know how they built the pressure cookers for the Boston bombers…we are talking the same concept…”
King added, “If you really want explosions you would bury these in the driveway, so they go up and out. We can build land mines, I’ve already built them before, you know that.”
Possessing an unregistered firearm or destructive device is punishable by up to 10 years in prison. Conspiring to do so is a crime that carries a potential maximum sentence of five years in prison.
This case was investigated by agents with the FBI and is being prosecuted by United States Attorney Glassman and Assistant United States Attorney Sheila G. Lafferty.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Megan Brook Gilliam Sentenced to Serve 110 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On February 11, 2019, Megan Brook Gilliam, 25, of Morristown, Tennessee, was sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Court Judge, to serve 110 months in federal prison for her role in a conspiracy to distribute methamphetamine.
Gilliam pleaded guilty in October 2018 to conspiring with Trinity Scott Johnson, 39, of Morristown, Tennessee; Truman Lee Smith, 24, of Russellville, Tennessee; Colby Scarlett, 20, of Morristown, Tennessee; Jessica James, 30, of Morristown, Tennessee; and others to distribute over 50 grams of methamphetamine in east Tennessee in 2017 and 2018. Johnson was sentenced in October 2018 to serve 204 months in federal prison. Smith was sentenced in November 2018 to serve 10 years in federal prison. In January 2019, Scarlett was sentenced to serve 10 years in federal prison. Finally, in February 2019 James was sentenced serve 15 years in prison.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department and FBI. Assistant U.S. Attorney Robert. M. Reeves represented the United States in court proceedings.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also the result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Madison County Man Pleads Guilty to Child Pornography ChargeRead 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 Steven Hathaway, 42, of De Ruyter, NY, pleaded guilty to attempted receipt of child pornography before U.S. District Judge Charles J. Siragusa. The charge carries a minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that the defendant engaged in online communications with an individual he believed to be a 12 year old girl. Over the course of several weeks, Hathaway engaged in sexually explicit conversations during which he asked for nude photographs and requested that the child meet in person to engage in sexual activity. At one point, the defendant purchased an iPhone for the child, which he placed in a location near the child’s home, so that the two could communicate and the child could send him photographs. Unbeknownst to Hathaway, the child was actually an undercover New York State Police Investigator.
On March 23, 2018, the defendant arranged to meet the child and was arrested by members of the New York State Police and Homeland Security Investigations.
The plea is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for May 20, 2019, before Judge Siragusa.
Lamar Man Sentenced to 12 Months Probation for Conversion of Mortgaged PropertyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that John Tyler Bible, age 27, of Lamar, Oklahoma, was sentenced to one year probation for Conversion Of Mortgaged Property, in violation of Title 18, United States Code, Section 658. The charges arose from an investigation by the Department of Agriculture Office of Inspector General.
The Information alleged that on or about June 6, 2012, and continuing through December 16, 2013, within the Eastern District of Oklahoma, the defendant, knowingly and with intent to defraud, willfully concealed, removed, disposed of, or converted to his own use certain property – cattle having a value in excess of $1,000.00 – and which was at the time of said disposition, mortgaged, pledged to and held by, United States Department of Agriculture-Farm Service Agency.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Christopher Wilson represented the United States.
Judge sentences man to nine years in prison in child porn caseRead the Press Release
MISSOULA—A man who admitted downloading child pornography to his cell phone was sentenced today to nine years in federal prison and 15 years of supervised release, U.S. Attorney Kurt Alme said.
Wes Brady Johnson, 49, formerly of Marion, pleaded guilty in October to possession of child porn.
Chief U.S. District Judge Dana L. Christensen presided at sentencing. Judge Christensen also ordered $3,000 restitution.
An investigation began in September 2016 when a Montana Internet Crimes Against Children Task Force agent received two tips that a user was uploading child porn with a Twitter account and that the account was connected to Johnson. Johnson’s cell phone was seized during a search of a Flathead County residence where he had been staying. Johnson said in an interview that he had been downloading child porn for about six months and that the files contained sexually explicit images of prepubescent girls.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the ICACTF, Flathead County Sheriff’s Office and Montana Division of Criminal Investigation.
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Jewelry District Business Owner Pleads Guilty to Money LaunderingRead the Press Release
LOS ANGELES – A precious metals trader based in the Los Angeles Jewelry District pleaded guilty today to a money laundering charge after being caught in an undercover operation where he agreed to conceal what was described to him as more than $200,000 in drug trafficking proceeds.
Saeed Elyahouzadeh, 53, of Westwood, who owns and operates R.S.D. Trading Co., entered his guilty plea to one felony money laundering charge before United States District Judge Dale S. Fischer.
According to a plea agreement filed in this case, between April 2015 and December 2017 Elyahouzadeh took part in four financial transactions with the intent to launder illicit drug proceeds through the use of his jewelry business. An undercover federal agent told Elyahouzadeh that the proceeds being laundered were the result of drug trafficking, according to court documents.
For example, on April 22, 2015, Elyahouzadeh met with an undercover law enforcement agent who asked him to “clean” $18,000 that was generated through cocaine sales, the plea agreement states. Elyahouzadeh agreed to launder the $18,000 in exchange for a $1,000 fee. In the weeks that followed that meeting, Elyahouzadeh arranged for multiple checks to be deposited into a bank account provided by the undercover agent, according to court documents. On three subsequent occasions – in June 2015, November 2017 and December 2017 – Elyahouzadeh agreed to launder a total of $200,000 from the undercover agent in exchange for a total of $11,000, court papers state. Typically, Elyahouzadeh would agree to launder the money in exchange for between 5 percent and 6 percent of the given amount. In the weeks following each of those meetings with the undercover agent, Elyahouzadeh arranged for multiple checks to be deposited into the bank account that the undercover agent provided, according to his plea agreement.
Judge Fischer is scheduled to sentence Elyahouzadeh on July 15 at which time he will face a statutory maximum sentence of 20 years in federal prison.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, IRS Criminal Investigation, and the Drug Enforcement Administration
This matter is being prosecuted by Assistant United States Attorney Aron Ketchel of the Public Corruption and Civil Rights Section.
Jefferson County Man Pleads Guilty to Carjacking, Use of a Firearm and Conspiracy to Possess and Distribute MethRead the Press Release
St. Louis, MO –Paris John Earnest Devine, 26, pleaded guilty to three counts – carjacking; brandishing a firearm during a crime of violence; and conspiracy to possess with the intent to distribute over 500 grams of methamphetamine. Devine appeared today before U.S. District Henry Autrey who accepted his plea and set his sentencing date for May 14, 2019.
According to the plea agreement, in the late evening hours of September 28, 2017, J.J. was getting off work as a pizza delivery driver when he drove to a MetroLink station in search of marijuana. After inquiring from several people, Paris Devine and Ramone Thomas, who were strangers to J.J., informed J.J. that they could assist him in procuring marijuana. J.J. invited Devine and Ramone Thomas into his vehicle, a black 2013 Kia Forte, before J.J. drove them around for between 30 and 45 minutes.
After stopping at a gas station in the area of 5415 Virginia Avenue, Devine produced a handgun and demanded that J.J. exit his car and surrender it to Devine and Thomas. J.J. surrendered the Kia Forte and then contacted police. After J.J.’s Kia Forte was recovered, having been used in the herein referenced home invasion, J.J. was shown two photographic lineups containing photographs of Devine and Ramone Thomas. J.J. positively identified both and stated that Devine was the subject who brandished the firearm at him.
In the evening hours of October 10, 2017 and into the early morning hours of October 11, 2017, co-defendant Kathleen Hydar invited co-defendant Courtney Brown and his associates, including defendant Paris Devine, to come from St. Louis City down to Jefferson County, Missouri. Hydar had informed Brown that she knew of a way for them to “make some money” that evening. Brown picked up Hydar in a vehicle being driven by Ramone Thomas. Also in the car were Paris Devine, Raymond Seay, and an unindicted subject.
When Hydar got into the vehicle, she informed Devine and other members of the group that she knew of a location where they could steal large amounts of methamphetamine, United States currency, and firearms. Hydar instructed the driver, Ramone Thomas, to make a stop at another residence prior to going to the aforementioned target location. While at this residence, Hydar described, in detail, where Brown, Devine, Seay, and Ramone Thomas could locate a large amount of methamphetamine, firearms, and currency within a trailer owned by Chad Coffman. After describing where the others could locate these items, Hydar got back into the vehicle and proceeded to direct the driver, Ramone Thomas, to 765 Chancellor Drive, the address of the trailer belonging to Coffman. Hydar also made a phone call to Coffman to ensure he would not be home when the group arrived to burglarize his trailer.
When they arrived at Coffman’s trailer shortly before 4:00am on October 11, 2017, Brown, Devine, Seay, and Thomas then exited the vehicle and kicked in the main door to the trailer and made entry.
Shortly after Seay, Brown, Devine, and Ramone Thomas entered the trailer, Coffman arrived home on his motorcycle and interrupted the burglary. Hydar jumped into the driver’s seat of the vehicle and fled the scene with the unindicted subject in the back seat.
While in the trailer, when Thomas, Seay, Devine, and Brown heard Coffman arrive home, Ramone Thomas passed off a firearm he had brought to the residence to co-defendant Courtney Brown, and they all attempted to flee from the trailer. As Brown exited the residence, he turned the corner, raised the firearm, and discharged it one time, believing he was shooting at Coffman. The projectile struck Ramone Thomas in front of the residence, killing him.
Officers arrived on scene and obtained a search warrant for the trailer. A search of the trailer revealed that Coffman was in possession of what lab analysis confirmed to be approximately five (5) pounds of methamphetamine. Devine was apprehended by investigators in Jefferson County, Missouri, several hours after the burglary.
Chad Coffman pled guilty last year and was sentenced to 96 months in prison for possession with intent to distribute methamphetamine.
If convicted, the charge of carjacking carries a penalty of imprisonment of not more than 15 years and a $250,000 fine; brandishing a firearm carries a penalty of imprisonment of not more than life and a $250,000 fine; and conspiracy to possess with the intent to distribute over 500 grams of methamphetamine carries a penalty of imprisonment of note more than life, a $10,000,000 fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jefferson County Sheriff’s Office, the Major Case Squad and the Jefferson County Prosecutor’s Office.
Houston Resident Convicted of Fraud Scheme Linked to Hurricane HarveyRead the Press Release
HOUSTON ‐ A Houston area resident has entered a guilty plea to fraud in connection with a major disaster for her scheme to defraud the Federal Emergency Management Agency (FEMA), announced U.S. Attorney Ryan K. Patrick.
Patricia Rodriguez, 38, of Houston, entered her guilty plea today before U.S. District Judge Vanessa Gilmore.
As part of that plea, Rodriguez admitted she submitted a false or fraudulent application to FEMA for government assistance in reference to property damage sustained in Hurricane Harvey. The property was located in Houston but which investigators determined not to have sustained any damage.
Rodriguez admitted the application was fraudulent as it contained a falsified letter purporting to be from her landlord. The letter claimed Rodriguez bought the damaged dwelling for $7,000 on Feb. 9, 2013, and would thereafter lease the lot for $300 per month. The landlord’s name was misspelled and was drafted without his authorization and consent.
As a result of her scheme, Rodriguez received $33,300 from FEMA, all of which was sent to into her personal bank account.
Sentencing has been set for April 29, 2019, before U.S. District Judge Vanessa Gilmore. At that time, Rodriguez faces a maximum of 30 years in federal prison a possible $250,000 fine. She was permitted to remain on bond pending that hearing.
The Department of Homeland Security - Office of Inspector General (OIG) and the Small Business Administration – OIG conducted the investigation. Assistant U.S. Attorney Michael Day is prosecuting the case.
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims and before giving contributions to anyone soliciting donations on behalf of disaster victims as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Members of the public who suspect fraud, waste, abuse or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707 or email it to [email protected] (link sends e-mail). Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Genetic Testing Company Agrees to Pay $1.99 Million to Resolve Allegations of False Claims to Medicare for Medically Unnecessary TestsRead the Press Release
The Justice Department announced today that GenomeDx Biosciences Corp. (GenomeDx) has agreed to pay $1.99 million to resolve allegations that it violated the False Claims Act, 31 U.S.C. §§ 3729 et seq., by submitting claims to Medicare for the Decipher® post-operative genetic test for prostate cancer patients. GenomeDx is a genetic testing laboratory headquartered in Vancouver, British Columbia, with operations based in San Diego.
“The Department of Justice is committed to ensuring that Medicare reimburses costs for laboratory testing that are reasonable and necessary for the individual patient,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Medically unnecessary and unproven testing increases costs for federal health care programs.”
The United States alleged that GenomeDx knowingly submitted claims for the Decipher test to Medicare between September 2015 and June 2017 that were not medically reasonable and necessary because the prostate cancer patients did not have risk factors necessitating the test, including pathological stage T2 disease with a positive surgical margin, pathological stage T3 disease or rising Prostate-Specific Antigen (PSA”) levels after an initial PSA nadir.
“As this settlement demonstrates, we are committed to protecting the integrity of the Medicare program and will hold health care providers accountable under the False Claims Act when they engage in improper billing,” said Robert S. Brewer, Jr., United States Attorney for the Southern District of California. “This settlement is also another example of our commitment to vigorously investigate cases brought to our attention by whistleblowers. We commend the two employees of GenomeDx who had the courage to come forward and work with investigators.”
“Lab tests and other medical services should only be conducted or provided when medically necessary,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Whistleblowers play a critical role in keeping entities honest and accountable, and are encouraged to report suspected waste, fraud and abuse by those billing federal healthcare programs.”
“The message is clear, if you take advantage of programs like Medicare, you will be held accountable,” said John Brown, FBI Special Agent in Charge of the San Diego Field Office. “Companies who engage in filing false claims to generate more corporate revenue are not only stealing from the federal taxpayer, but also from people who rely on federally funded programs for their health care needs.”
The settlement resolves allegations originally brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers will receive $348,316.50 from the False Claims Act recovery.
The investigation was conducted by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Southern District of California, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation.
The case is captioned United States ex rel. La Fleur et al. v. GenomeDX Biosciences Corp., No. 17-CV-1959 (S.D. Cal.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Former San Diego Unified School Teacher Sentenced for Receipt of Child PornographyRead the Press Release
Assistant U.S. Attorney Janet Cabral (619) 546-8715
NEWS RELEASE SUMMARY – February 11, 2019
SAN DIEGO – Former San Diego Unified School District teacher David Gordon Weaks was sentenced today to 70 months in prison following his guilty plea to one count of receipt of images of minors engaged in sexually explicit conduct.
Weaks was a fifth-grade teacher at Rosa Parks Elementary School up until the time of his arrest. He has been in custody since federal agents executed a search warrant at his home and arrested him on April 19, 2018. Weaks’ term of custody will be followed by an eight-year term of supervised release, including restrictions on his use of the internet.
Weaks, 60, came to the attention of agents from Homeland Security Investigations in early April 2018, when agents found that a computer associated with Weaks’ residence was making files of child pornography available for downloading by others through a publicly available peer to peer file sharing network. Analysis of the devices seized from Weaks’ residence at the time of the April 19, 2018, search warrant, revealed that child pornography files were found on a desktop computer, two laptop computers and a backup hard drive.
DEFENDANT Criminal Case No. 18cr2469-LAB
David Gordon Weaks Age: 60 San Diego, CA
SUMMARY OF CHARGE
Title 18, United States Code, Section 2252(a)(2) – Receipt of Images of Minors Engaged in Sexually Explicit Conduct
Maximum penalties: 20 years in prison (with a mandatory minimum of 5 years in prison); $250,000 fine; Mandatory Special Assessment of $100; Special Assessment of $5,000 under Justice for Victims of Trafficking Act of 2015; Restitution; Forfeiture
INVESTIGATING AGENCIES
Homeland Security Investigations
Former Ceo of Alaska-Based Fiber Optic Cable Company Pleads Guilty to Wire Fraud and Aggravated Identity Theft for Defrauding New York Investment CompaniesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ELIZABETH ANN PIERCE, the former Chief Executive Officer of a telecommunications company based in Anchorage, Alaska, pled guilty today in Manhattan federal court to wire fraud and aggravated identity theft in connection with a scheme to use forged guaranteed revenue contracts fraudulently to induce investors to invest more than $250 million into her company for the construction of a fiber optic cable network in Alaska. PIERCE pled guilty before U.S. District Judge Edgardo Ramos.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As she admitted today, Elizabeth Ann Pierce engaged in a brazen, multi-year scheme to obtain over $250 million from investors by misrepresenting that she had guaranteed revenue contracts with multiple telecommunications services companies. But in fact, the defendant faked those contracts, forged other people’s signatures on them, and then lied to cover up her fraud. She abused her executive position and is now being held accountable for her crimes.”
According to the Complaint, the Indictment, statements made in court, and publicly available documents:
Until July 2017, PIERCE was the chief executive officer of Quintillion, a telecommunications company based in Anchorage, Alaska that built, operates, and markets a high-speed fiber optic cable system (the “Fiber Optic Cable System”). This System consists of three segments: a subsea segment that spans the Alaskan Arctic; a terrestrial segment that runs north to south along the Dalton Highway; and a land-based network of fibers that connects the subsea and terrestrial segments. The Fiber Optic Cable System is connected to the lower 48 states through other existing networks.
Between May 2015 and July 2017, PIERCE engaged in a scheme to induce two investment companies to provide more than $250 million to construct the Fiber Optic Cable System by providing them with eight forged broadband capacity sales contracts and related order forms under which Quintillion would obtain guaranteed revenue once the Fiber Optic Cable System was built (the “Fake Revenue Agreements”). Under the Fake Revenue Agreements, four telecommunications services companies appeared to have made binding commitments to purchase specific wholesale quantities of capacity from Quintillion at specified prices. The cumulative value of the Fake Revenue Agreements was more than $24 million during the first year of the subsea segment’s operation, approximately $10 million during the first year of the terrestrial segment’s operation, and approximately $1 billion over the life of the Fake Revenue Agreements. In reality, the Fake Revenue Agreements were completely worthless because PIERCE had forged the counterparties’ signatures.
Certain of the Fake Revenue Agreements never existed at all, while others were falsified versions of genuine revenue agreements. PIERCE fabricated the terms of the false versions of the agreements to make them more favorable to Quintillion and, therefore, more appealing to investors than the genuine agreements. For example, under one of the Fake Revenue Agreements, the customer purportedly agreed to buy increasing amounts of gigabits per second of capacity over a period of 20 years from Quintillion. That agreement, if genuine, would have assured Quintillion hundreds of millions of dollars in future revenue. In reality, negotiations over that deal had ended unsuccessfully, which fact PIERCE never disclosed to the investors. Under another Fake Revenue Agreement, the customer purportedly agreed to buy a fixed, predetermined amount of capacity from Quintillion regardless of subsequent market conditions. In truth, that customer was not obligated to buy any capacity.
After the terrestrial system was built, PIERCE attempted to prevent the discovery of the Fake Revenue Agreements by accelerating the timing of incoming payments under certain genuine agreements to make those payments appear to be based on the Fake Revenue Agreements. PIERCE also sought to prevent Quintillion and the investors from invoicing one of the customers that had no real contract with Quintillion by fabricating e-mail correspondence PIERCE purportedly had with that customer. PIERCE’s scheme started to unravel when a customer disputed invoices that it received from Quintillion pursuant to one of the Fake Revenue Agreements. Shortly thereafter, in the midst of Quintillion’s internal investigation, PIERCE abruptly resigned. Quintillion self-reported PIERCE’s conduct to the Department of Justice.
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PIERCE, age 55, now of Austin, Texas, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison, and eight counts of aggravated identity theft, each of which carries a mandatory 2-year term of imprisonment, of which at least 2 years must be consecutive to any term of imprisonment imposed on the wire fraud count.
PIERCE is scheduled to be sentenced by U.S. District Judge Edgardo Ramos on May 16, 2019, at 11:00 a.m.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah Lai and Vladislav Vainberg are in charge of the prosecution.
Federal Court Bars Louisiana Tax Return Preparer from Preparing Tax ReturnsRead the Press Release
A federal court in New Orleans, Louisiana, entered a permanent injunction judgment against Adrienne Robinson Thomas, doing business as AT Tax Services, barring her from preparing federal tax returns for others, the Justice Department announced today.
In its order, the court noted that the government’s complaint alleged that Thomas prepared fraudulent tax returns for her customers and filed false tax returns using taxpayers’ identifying information without their knowledge or authorization.
As stated in the court’s order, the government’s complaint also alleged that Thomas unlawfully prepared federal tax returns that lowered her customers’ federal tax liabilities by claiming bogus earned income tax credits, bogus child tax credits, false education credits, and fabricated household employee income and withholdings.
In addition, the order recites the government’s allegations that Thomas prepared fraudulent returns for taxpayers without the knowledge of those taxpayers, via identity theft.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Fall River Man Admits to Drug Trafficking Through the US MailRead the Press Release
PROVIDENCE - A Fall River man pleaded guilty today to federal charges related to his participation in a conspiracy to traffic multiple kilograms of cocaine from Puerto Rico to Rhode Island through the U.S. Postal Service.
David J. Knight, 48, admitted to the Court that for approximately eight months beginning in August 2016, he made multiple trips to Puerto Rico for the purpose of purchasing large quantities of cocaine that were then packaged and shipped through the U.S. Postal Service to various addresses in Rhode Island.
An investigation by U.S. Postal Inspection Service agents determined that Knight made at least nine trips to Puerto Rico to acquire approximately 250 grams of cocaine per trip. Through his participation in the conspiracy, Knight acquired at least two thousand two hundred fifty grams, or more than two kilograms of cocaine.
Appearing before U.S. District Court John J. McConnell, Jr., Knight pleaded guilty to conspiracy to possess more than one kilogram of cocaine with the intent to distribute and possession of more than one kilogram of cocaine with the intent to distribute, announced United States Attorney Aaron L. Weisman and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston.
Knight is scheduled to be sentenced on June 11, 2019.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
Knight is the ninth person charged in a series of ongoing investigations by U.S. Postal Inspection Service agents to identify and interrupt the delivery of packages of narcotics shipped through the U.S. Postal Service to addresses in Rhode Island, to identify individuals responsible for making the shipments, and to identify the intended recipients of the packages. Through these investigations, U.S. Postal Inspection agents have intercepted more than 100 packages containing 250 grams or more of cocaine, shipped from Puerto Rico to Rhode Island.
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East Longmeadow Man Arrested for Marijuana TraffickingRead the Press Release
BOSTON – An East Longmeadow man was arrested on Friday, Feb. 8, 2019, and charged in federal court in Springfield for marijuana trafficking.
John Americo Pereira, 33, was charged with possession with intent to distribute marijuana. He appeared in federal court in Springfield this afternoon and was ordered detained pending a detention hearing.
According to court documents, since January 2018, law enforcement have been investigating Pereira and others for distributing marijuana. A search warrant was executed on Feb. 8, 2019, at Pereira’s home where agents discovered approximately $688,000 in a safe and 260 pounds of suspected marijuana. Additional search warrants have been executed at locations in East Longmeadow, Springfield and Ellington, Conn., where law enforcement have discovered, in total, more than 1,000 pounds of marijuana.
Pereira faces a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office and Trial Attorney Marianne Shelvey, of the U.S. Department of Justice, Criminal Division, Organized Crime and Gang Section, are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
East Hartford Man Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALEXANDER PEDRAZA, 28, of East Hartford, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of sex trafficking of a minor.
According to court documents and statements made in court, Pedraza promoted the prostitution of a 16-year-old girl by advertising the victim’s prostitution services and soliciting clients on Backpage.com. In March 2017, he harbored the victim in motel rooms he rented in Hartford, Windsor and East Windsor, where clients met the victim and paid for sex acts. Pedraza also had sexual contact with the victim.
The investigation also revealed that, between September and December 2016, Pedraza engaged in sex trafficking of at least two 18-year-old females.
Pedraza has been detained since his arrest on May 26, 2017.
When he is sentenced, Pedraza faces a mandatory minimum term of imprisonment of 10 years and a maximum term of life imprisonment. A sentencing date is not scheduled.
This matter is being investigated by the Federal Bureau of Investigation and the East Windsor Police Department, through the Connecticut Human Trafficking Task Force. The case is being prosecuted by Assistant U.S. Attorneys Neeraj N. Patel and Sarala V. Nagala.
Durham Woman Who Defrauded Elderly Victim Pleads GuiltyRead the Press Release
Winston-Salem, N.C. – A woman who embezzled from an older person for whom she was a caretaker pleaded guilty to federal charges on Friday, February 8, announced United States Attorney Matthew G.T. Martin for the Middle District of North Carolina.
Teresa Denise Schneider, 52, of Durham, North Carolina, pleaded guilty to one count of bank fraud and one count of wire fraud, in front of the Honorable Loretta C. Biggs, United States District Judge for the Middle District of North Carolina.
“We should honor our elders, not steal from them. Ms. Schneider abused her position of trust as caretaker. We will aggressively pursue those who commit such acts,” said U.S. Attorney Martin, adding, “I commend the Department of Treasury Task Force, NC SBI, and AUSA Chut who worked diligently to make sure this defendant is held accountable for exploiting a vulnerable victim and abusing the trust of the victim’s family.”
According to court documents, Schneider began caring for the victim in 2010 and continued to do so until the victim’s death of natural causes at the age of ninety in 2013. During this time, family members of the victim, who visited almost daily, became concerned about Schneider’s involvement in the victim’s finances. In September 2011, a family member instructed Schneider to provide monthly copies of all bank and credit card statements. Schneider complied, but after the victim’s death, the family discovered that the account statements Schneider provided had been altered to remove or conceal transfers of funds to Schneider. In total, Schneider embezzled approximately $370,000 from the victim.
Schneider’s main source for converting the victim’s funds to her own use involved the victim’s credit card. Schneider transferred funds from the victim’s deposit and investment accounts to overpay wildly the credit card by tens of thousands of dollars. Schneider then converted this money in two ways. First, she made numerous unauthorized purchases on the card, including paying for spa treatments, travel, college tuition, dining, and expensive shopping sprees at department stores. Second, Schneider used a direct transfer feature of the credit card to transfer over $100,000 to her personal bank account.
Schneider knew that she was not entitled to these funds and not authorized to make these transfers.
The sentencing is set for July 18, 2019, at 9:30 a.m. in Winston-Salem. Schneider faces up to thirty years in prison, a fine of up to $1,000,000, and supervised release of not more than five years following release from prison. At sentencing Schneider will also be ordered to pay restitution.
This case was investigated by the United States Department of Treasury Office of Inspector General Task Force and the North Carolina State Bureau of Investigation. Assistant United States Attorney Frank J. Chut, Jr. prosecuted the case.
Elder abuse includes physical abuse, caregiver neglect, financial exploitation, psychological abuse, sexual abuse, and abandonment. Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
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Detroit Man Sentenced to 156 months for Conspiracy to Distribute Fentanyl and HeroinRead the Press Release
ASHLAND, Ky. — Leonard Anthony Wright, 33, of Detroit, was sentenced Monday, to 156 months in federal prison, by United States District Judge David L. Bunning, for conspiracy to distribute 40 Grams or more of Fentanyl and conspiracy to distribute 100 Grams of more of Heroin.
In April 2017, law enforcement members of the Huntington FBI Task Force, in conjunction with the Kentucky State Police and the Ashland Police Department, seized 209 grams of fentanyl, which Wright transported from Detroit to the Tri-State area of Ashland, Huntington, W.Va., and Ironton, Ohio. In August 2017, the same law enforcement agencies sized 876 grams of heroin, which had also been transported from Detroit to the Tri-State area. In September 2018, Wright entered a plea of guilty, admitting that he orchestrated the delivery of the fentanyl and heroin.
“The defendant transported significant quantities of the deadly drugs fentanyl and heroin to the Tri-State area, and now he faces a lengthy sentence of imprisonment for his illegal actions,” said United States Attorney Robert M. Duncan, Jr. “I commend law enforcement for their coordination and cooperation during this investigation. The combined efforts of the law enforcement agencies involved helped remove substantial amounts of dangerous drugs from the streets and likely saved lives.”
Under federal law, Wright must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for four years.
U.S. Attorney Duncan; Robert Allan Jones, Special Agent in Charge of the FBI Pittsburgh; Richard Sanders, Commissioner of the Kentucky State Police; and Todd Kelley, Chief of the Ashland Police Department, jointly made the announcement.
The FBI, KSP, and Ashland Police Department conducted the investigation. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
Convicted Felon Sentenced to Federal Prison for Possessing a FirearmRead the Press Release
A two-time felon who possessed a three different firearms on three different occasions was sentenced to two years in federal prison today.
Chad Michael Chase, age 42, from Algona, Iowa, received the prison term after an August 20, 2018, guilty plea to one count of being a felon in possession of a firearm.
Evidence from the change of plea and sentencing hearing revealed defendant had a history of violence, five OWI convictions (including two felony violations), had illegally possessed three firearms on three occasions, and had twice been disarmed by local police before being prosecuted federally.
Chase was sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand. Chase was sentenced to 24 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Chase is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of the Project Safe Neighborhoods (PSN). 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 violence crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violence offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Kossuth County Sheriff’s Office and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-03008.
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Colombian Nationals Sentenced to 45 and 50 Years in Prison for Participating in Human Smuggling Event that Resulted in the Rape and Murder of Cuban NationalsRead the Press Release
Two Colombian nationals were sentenced to 45 and 50 years in prison for their roles in a scheme to smuggle illegal aliens from Colombia into the United States, which resulted in the rape of one and the death of two Cuban nationals.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Carlos Emilio Ibarguen Palacios, 27, and Jhoan Stiven Carreazo Asprilla, 23, Colombian nationals, extradited to the United States in 2017 and 2018 respectively, to face these charges, previously pleaded guilty to one count of conspiracy to encourage and induce aliens to come to the Unites States resulting in death as well as three counts of encouraging and inducing aliens to come to the United States resulting in death and placing in jeopardy the lives of any person. Ibarguen Palacios and Carreazo Asprilla were sentenced to serve 540 months and 600 months in prison, respectively, by U.S. District Judge Jose E. Martinez of the Southern District of Florida, who also ordered them to serve three years of supervised release following their prison sentence.
“The heinous acts committed by the defendants in this case provide a stark reminder that alien smuggling is inherently dangerous—and can be deadly,” said Assistant Attorney General Benczkowski. “But for the desperate escape of one of the victims, the defendants’ acts would have remained hidden with the bodies they left behind. The substantial prison sentence imposed today against these two smugglers demonstrates the Department of Justice’s continuing commitment to prosecute those who violate this country’s immigration laws.”
“The defendants’ carried out a fatal human smuggling trip for which two victims paid the ultimate price,” said U.S. Attorney Fajardo Orshan. “But for the strength of the surviving victim, the defendants’ brutality would have been washed away at sea. The significant federal prison sentences imposed against the smugglers cannot bring back life but we hope can serve to thwart the dangerous business of alien smuggling.”
“These two individuals were involved in one of the most cold and callous cases investigated by HSI Miami,” said HSI Special Agent in Charge Salisbury. “Although the sentences will not return the victims to their loved ones, it does bring justice for their friends and family. HSI will continue to aggressively investigate, pursue and shut down these organizations that are involved in this heinous criminal act.”
According to the court record, including agreed-upon factual proffers, since 2014, Carlos Emilio Ibarguen Palacios, Jhoan Stiven Carreazo Asprilla, and their co-defendants, organized and arranged the unlawful smuggling of illegal aliens, transporting them across Colombia toward the Panamanian border, en route to the United States. In 2016, three Cuban nationals arranged with, and paid, the defendants to transport them from Colombia to Panama, as they traveled to the United States, intending to arrive in Miami.
On Sep. 7, 2016, during a portion of their journey, the three victims – two men and a woman – were delivered by co-defendant Fredis Valencia Palacios to a boat captained by Ibarguen Palacios. After some delay, Ibarguen Palacios was joined by Carreazo Asprilla and they began their journey to Panama. During the boat trip, Ibarguen Palacios and Carreazo Asprilla pulled a knife and gun, respectively, on the victims. Ibarguen Palacios tied the wrists of the two male passengers and then threw them overboard, anchoring them with rope to the inside of the boat. The surviving male victim reported that he heard Ibarguen Palacios and Carreazo Asprilla sexually assault the female victim before cutting her throat and murdering her. The surviving victim also heard Ibarguen Palacios and Carreazo Asprilla cut the other male victim’s throat, killing him. While his fellow travelers were being murdered, the survivor managed to free himself and escape by swimming away. Ibarguen Palacios and Carreazo Asprilla left him for dead.
The next day, a local fisherman discovered the survivor, who was subsequently rescued by the Colombian Navy. The survivor directed the Colombian authorities to the place where the murders happened, and the Colombian authorities retrieved the bodies. Their throats and bellies had been cut open and they were tied up together and submerged in the water. Shortly thereafter, Ibarguen Palacios and Carreazo Asprilla were located and arrested.
Co-defendant Valencia Palacios who assisted in arranging this smuggling event was sentenced to serve 15 years in prison on Dec. 4, 2018 before U.S. District Judge Martinez.
This case was investigated by HSI Miami, with assistance from the HSI Bogota field office. The Government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation. The Criminal Division’s Office of International Affairs provided significant support with the defendants’ extradition. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida prosecuted the case.
Citrus Heights Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Emanuel Mois, 25, of Citrus Heights, pleaded guilty today to receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, between November 2016 and February 2017, Mois knowingly received and saved images depicting children engaged in sexually explicit activity onto his cellphone. At the time he received the images, Mois was on parole pursuant to a California state conviction for possession/distribution of child pornography, and had a prior conviction by the State of California for sexual battery of a minor.
This case is the product of an investigation by the Federal Bureau of Investigation, the Citrus Heights Police Department, and the Roseville Police Department. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
Mois is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on May 13, 2019. He faces a minimum statutory penalty of 15 years in prison and a maximum penalty of 40 years in prison, as well as a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Canadian man sentenced to 11 years in prison for sending scores of messages over social media attempting to coerce an 11-year-old from Ohio to engage in sexual activityRead the Press Release
A Canadian man was sentenced to 11 years in federal prison for sending scores of messages over social media attempting to coerce an 11-year-old from Ohio to engage in sexual activity.
Daniel Jason Wnek, 28, of Toronto, pleaded guilty last year to one count of coercion and/or enticement of a minor.
Wnek contacted the victim, identified as H.M., via Instagram in 2017. Wnek used the photograph of a younger male and falsely told H.M. he was 14 years old. Wnek eventually switched their communication to Snapchat, according to court documents.
Wnek eventually sent messages to H.M. that were sexual in nature, such as: “Would u lie on top of me when we meet?” and “Yea x we can take our pants off n I’ll bring a blanket,” according to court documents.
Wnek on Nov. 2, 2017 sent H.M. a sexually explicit photo via Snapchat. He also suggested picking her up, engaging in sexual activity and asked H.M. to send him sexually explicit photos of herself, according to court documents.
H.M.’s family contacted police and on Nov. 3, in the presence of law enforcement, another person posing as H.M. engaged in a Snapchat conversation with Wnek. He continued to solicit H.M. for sex, sent H.M. sexually explicit images and asked H.M. to send him sexually explicit images of her, according to court documents.
On Nov. 13, Wnek advised who he thought was H.M. that he planned to travel to Disney World in Florida for his birthday. Wnek was arrested after traveling from Toronto to Orlando, according to court documents.
“This case demonstrates how predators will target our children over social media by posing as people different from who they truly are,” U.S. Attorney Justin E. Herdman said. “Parents and trusted adults need to make it their business to know who their kids are communicating with.”
“Daniel Jason Wnek traveled thousands of miles in order to meet up with a child for sex after luring the child online,” said FBI Special Agent in Charge Eric B. Smith. “We must protect our children from online predators. The FBI will continue to pursue these vicious criminals and is pleased that Mr. Wnek will not be able to threaten children's innocence or lives any longer.
The investigating agency in this case is the Federal Bureau of Investigation and the Auglaize County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman
Bunch Man Pleads Guilty to Assaulting Postal Employee with A Deadly WeaponRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jeremy Lee Poafpybitty, a/k/a “Chooch”, age 33, of Bunch, Oklahoma, entered a guilty plea to Assaulting An Employee Of The United States With A Deadly And Dangerous Weapon in violation of Title 18, United States Code, Sections 111(a)(1) and (b), punishable by not more than 20 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that on or about July 24, 2018, within the Eastern District of Oklahoma, the defendant did knowingly, intentionally, and forcibly, with the use of a deadly and dangerous weapon, to wit: a knife, assault, oppose, impede, intimidate, and interfere with and did inflict bodily injury to an employee of the United States Postal Service while in and on account of the performance of official duties.
The charges arose from an investigation by the United States Postal Inspection Service.
The Honorable Kimberly E. West, 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 Shannon Henson represented the United States.
Bradley Chiropractor, Former Office Manager Guilty of Fraud, Tax ChargesRead the Press Release
URBANA, Ill. – A chiropractor who previously owned and operated the Bradley Chiropractic Clinic, located in Bradley, Ill., pleaded guilty today to wire fraud and failure to file tax returns. Joseph Mayotte, 72, of Kankakee, Ill., appeared in Urbana before Chief U.S. District Judge James E. Shadid. Mayotte’s trial had been scheduled to begin today with jury selection. Sentencing is scheduled on June 7, 2019. The clinic’s former office manager, Constance Leadingham, aka Connie, had previously pleaded guilty to bank fraud and filing false income tax returns and is scheduled to be sentenced on March 1, 2019.
Mayotte admitted that from January 2007 to October 2015, he executed a scheme to defraud Blue Cross / Blue Shield Insurance by submitting false billing claims. The false claims were typically made on behalf of patients for whom the clinic had not provided any services or were made in excess of the actual services provided. As a result, Blue Cross / Blue Shield paid the clinic more than $250,000 to which it was not entitled. Mayotte then used the money for his own benefit. In addition, Mayotte admitted that he failed to file federal income tax returns for tax years 2011 through 2014.
Leadingham, of Watseka, entered pleas of guilty on Nov. 28, 2017, to bank fraud and filing false income tax returns for tax years 2011, 2012, and 2013. Leadingham admitted that as the clinic’s office manager, she participated in the scheme by submitting fraudulent billing claims to the company. Leadingham then wrote checks payable to herself from the clinic’s checking account in addition to her salary. As a result, Leadingham obtained more than $380,000 to which she was not entitled. Further, Leadingham admitted that she did not disclose the additional income that she had fraudulently obtained from the clinic for her tax filings in 2011, 2012, and 2013.
The charges are the result of investigation by the FDIC Office of Inspector General; Internal Revenue Service Criminal Investigations, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Eugene L. Miller and Timothy A. Bass represented the government in the case prosecutions.
The maximum statutory penalty for wire fraud is 20 years in prison; for bank fraud the penalty is up to 30 years in prison. The maximum statutory penalty is prescribed by Congress and is provided here for informational purposes; sentences are determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Boston Residents Indicted on Drug and Firearm Conspiracy Charges in BurlingtonRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that two defendants have been indicted in Burlington on multiple charges, including Conspiracy to Distribute Cocaine Base, Conspiracy to Possess Firearms in Furtherance of a Drug Trafficking Crime, and Interstate Transportation of Firearms with Removed Serial Numbers. The indictment follows a criminal complaint that had been previously filed, alleging that the two Boston residents agreed with one another and others to distribute crack cocaine and obtain firearms in the Swanton area between September 2017 and March 2018. John Guerrero, 26, and Darwin Medina, 34, both of Boston, Massachusetts, were indicted in a four-count indictment by a federal grand jury in Burlington. An arraignment on the indictment will be scheduled soon.
According to court records, John “Sunshine” Guerrero and Darwin “Weezy” Medina had moved into a residence in Swanton, Vermont area and used it as a place from which to distribute large quantities of crack cocaine—in excess of 280 grams. They regularly brought cocaine powder to Vermont from South Boston, prepared crack cocaine from it in Swanton, and distributed it daily to multiple customers in exchange for cash or firearms. The pair acquired multiple firearms by having drug customers “straw purchase” the guns, wherein the licensed firearms dealers were unaware that the actual purchasers were not the individuals appearing in the stores. The serial numbers of many of the firearms were removed or obliterated by the defendants, who then transported or directed the transportation of many of the firearms from Vermont to Boston. At least five of those firearms have since been recovered by law enforcement in the Boston area during investigations. Guerrero and Medina were arrested on January 15, 2019, by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in Boston after a federal criminal complaint was filed earlier this year. The defendants appeared in federal court in Burlington on February 5 for detention hearings, and they were remanded to the custody of the United States Marshal pending further case proceedings.
In an earlier phase of the investigation, the grand jury indicted five of the drug customers who had straw purchased approximately thirty firearms for Guerrero and Medina. As noted in the criminal complaint associated with that case, those customers provided or helped to provide false information to gun stores in Franklin County to acquire the firearms and transfer them to Guerrero and Medina in exchange for crack cocaine. The defendants completed firearm transaction forms when purchasing the firearms in which they falsely stated that they were the actual buyers of the firearms and were not unlawful users of any controlled substances. https://www.justice.gov/usao-vt/pr/five-arrested-and-charged-straw-purchasers-30-firearms
The United States Attorney emphasizes that the charges contained in both indictments are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If they are convicted as charged, defendants John Guerrero and Darwin Medina face a minimum term of imprisonment of fifteen years and a maximum possible term of life imprisonment, but any sentence ultimately imposed will be advised by the United States Sentencing Guidelines.
U.S. Attorney Christina E. Nolan stated: “It is of paramount importance that we stop the flow of dangerous drugs into Vermont and the trafficking of illegally acquired Vermont guns to drug source cities, like Boston. This case is an outstanding example of the ATF working seamlessly with local police departments in Massachusetts and Vermont to do just that. We will continue to pursue serious charges and sentences for those who mix guns and violence with the drug trade.”
The United States Attorney’s Office acknowledges the work of ATF agents in Vermont and Massachusetts, the Saint Albans Police Department, and the South Boston Police Drug Control Unit in conducting this investigation. U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood, a nationwide commitment to reduce gun crime in America. Led by the U.S. Attorney’s Office and ATF, Project Safe Neighborhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who violate federal gun laws. For more information about Project Safe Neighborhood and Project Safe Vermont, please visit: https://www.justice.gov/psn.
Assistant United States Attorney Matthew Lasher will be leading the prosecution. Defendant John Guerrero is represented by attorney David Kidney, and defendant Darwin Medina is represented by attorney Michelle Anderson Barth.
Baldwinsville Man Sentenced for Obstructing the Department of LaborRead the Press Release
SYRACUSE, NEW YORK - Elias J. Sawalha, age 64, of Baldwinsville, New York, was sentenced today to serve a three-year term of probation and a $10,000 fine after previously pleading guilty to submitting fraudulent documents to the Department of Labor’s Wage and Hour Division, announced United States Attorney Grant C. Jaquith and Michael C. Mikulka, Special Agent in Charge of the New York Region of the United States Department of Labor, Office of Inspector General, Office of Investigations.
As part of his guilty plea, Sawalha admitted that he submitted false documents to influence a U.S. Department of Labor investigation relating to the wages of his employees at two gas stations he owned and operated in Onondaga County. In December 2014, the Department of Labor’s Wage and Hour Division notified Sawalha that it was investigating violations of the Fair Labor Standards Act. This investigation revealed that Sawalha willfully failed to pay more than $30,000 in overtime wages and back pay to four employees as required by federal law. Sawalha agreed to pay the applicable overtime wages and back pay, and he subsequently submitted documentation to the Department of Labor certifying under penalty of perjury that he had made the required payments “in full.” That paperwork included copies of checks written out to the four employees. The Department of Labor closed its investigation, though it later reopened the investigation upon learning that Sawalha never provided the checks to his employees, even though he did manipulate their pay stubs (and, consequently, their annual W2 forms) to falsely reflect that they had been paid. After additional investigation, the defendant admitted that he had falsified the paperwork in attempt to shut down the investigation without paying his employees what he owed them.
This case was investigated by the United States Department of Labor, Office of Inspector General, Office of Investigations, and was prosecuted by Assistant U.S. Attorneys Sahar L. Amandolare and Michael F. Perry.
Bakersfield Man Pleads Guilty to Cyberstalking Florida WomanRead the Press Release
FRESNO, Calif. —Earl John Velasquez, 23, of Bakersfield, pleaded guilty today to stalking, U.S. Attorney McGregor W. Scott announced.
According to the plea agreement, between January and June 2018, Velasquez used various cellphones and social media applications to post threatening statements to a woman living in Florida. In addition to his own accounts, Velasquez created a social media account using a fictitious name and also used a relative’s account to send the threatening messages. Among other threats, Velasquez claimed he was planning on shooting up a tattoo parlor in Florida. On April 30, he commented on an Instagram post in which the victim was tagged and said, “I’m going to kill that girl one day.” This conduct caused substantial emotional distress to the victim.
This case is the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Department. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.
Velasquez is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on May 6, 2019. Velasquez faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Associate of Former Border Patrol Agent Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
An associate of a former U.S. Border Patrol Agent (BPA) pleaded guilty to conspiring to accept money in return for helping to smuggle marijuana and other illegal drugs into the United States.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney for the Southern District of Texas Ryan K. Patrick, Special Agent in Charge Perrye Turner of the FBI’s Houston Field Office and Special Agent in Charge Juan Benavidez of the Department of Homeland Security Customs and Border Protection Office of Professional Responsibility (CBP OPR)’s Houston Field Office made the announcement.
Daniel Hernandez, 46, of Roseville, California, pleaded guilty on Feb. 5 to one count of conspiracy to bribe a public official before U.S. Magistrate Judge Nancy K. Johnson in the Southern District of Texas. Sentencing has been scheduled for May 9, before U.S. District Judge Gray H. Miller, who accepted the plea on Feb. 8.
According to the plea documents, between 2013 and May 2014, Hernandez and the BPA agreed, and took overt acts, to facilitate the trafficking of illegal drugs, including marijuana, into the United States from Mexico on behalf of a drug trafficking organization (DTO). In exchange for cash payments, they provided an individual they believed to be a member of the DTO with CBP sensor locations, the locations of unpatrolled roads at or near the U.S.-Mexico border, the number of BPAs working in a certain area, keys to unlock CBP locks located on gates to ranch fences along the border, and CBP radios. In total, Hernandez accepted approximately $5,000 in cash in return for facilitating shipments of illegal narcotics into Texas without law enforcement detection.
The FBI with the assistance of CBP OPR, investigated the case. Trial Attorneys Rebecca Moses and Peter M. Nothstein of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorneys John Pearson and Arthur R. Jones of the Southern District of Texas are prosecuting the case.
Ardmore Man Sentenced to 60 Months for Possession of Stolen FirearmRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jason Glen Willis, age 32, of Ardmore, Oklahoma, was sentenced to 60 months imprisonment and 3 years of supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2); and to Possessing, Receiving And Concealing A Stolen Firearm, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2). The charges arose from an investigation by the Ardmore Police Department, the Murray County Sherriff’s Office, the Oklahoma Highway Patrol, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation.
The Indictment alleged that on or about March 20, 2017, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed a Heritage Manufacturing, Inc., Model Rough Rider, .22 caliber revolver, serial number F76454, a firearm which had been shipped and transported in interstate commerce.
The Indictment also alleged that on or about March 20, 2017, the defendant knowingly possessed, received and concealed the same firearm which was stolen and had been shipped and transported in interstate commerce, knowing and having reasonable cause to believe the firearm was stolen.
United States Attorney Brian J. Kuester said, “One of the top priorities of the Department of Justice is to reduce violent crime and promote public safety. When state, local, tribal, and federal law enforcement agencies work together, as they did in this case, we are able to make progress on that priority. The law enforcement community is at its best when working relationships are strong. I commend the agencies involved in this investigation for their team efforts.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Alleged Gang Member Charged with 2014 Manhattan MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John B. Devito, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an indictment charging FRANK BRANDON, a/k/a “Trizzy,” an alleged member of the “Milla Bloods” gang, with the February 23, 2014, murder of Gashier Mendy, 24, inside the Saint Nicholas Houses in Manhattan, and related offenses. BRANDON was taken into federal custody this morning in Gloversville, New York, and was presented this afternoon before United States Magistrate Judge Kevin Nathaniel Fox. The case is assigned to U.S. District Judge Edgardo Ramos.
U.S. Attorney Geoffrey S. Berman said: “Almost five years ago, Gashier Mendy was shot dead, her life tragically and brutally taken. As alleged in today’s indictment, Frank Brandon killed her. Thanks to the outstanding efforts of the NYPD and ATF, Brandon now faces murder charges for his heinous crime.”
ATF Special Agent-in-Charge John B. Devito said: “Frank Brandon, an alleged member of the ‘Milla Bloods’ gang, was charged with a number of federal offenses including the murder of a young woman. ATF and our law enforcement partners stand united at the frontline in the fight against violent crime. We will aggressively pursue and bring to justice any individual bent on bringing heinous acts of violence into their communities. I would like to thank the members of the ATF/ NYPD Joint Robbery Task Force for their tireless efforts on this case. I would also like to thank the United States Attorney’s Office for their work in prosecuting this case.
According to the allegations in the Indictment[1]:
BRANDON was a member of the “Milla Bloods,” a gang that operated in Manhattan and engaged in racketeering activity, including acts of violence and narcotics distribution. On February 23, 2014, in furtherance of his gang activity, BRANDON shot and killed Gashier Mendy inside 240 West 129th Street.
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BRANDON, 32, of Gloversville, New York, is charged in the Indictment with one count of murder in aid of racketeering, in violation of Title 18, United States Code, Sections 1959(a)(1) and 2; one count of murder through the use of a firearm, in violation of Title 18, United States Code, Sections 924(j) and 2; one count of being a felon in possession of ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 2; and one count of conspiracy to distribute and possess with intent to distribute methamphetamines and marijuana, in violation of Title 21, United States Code, Section 846. BRANDON faces a mandatory minimum penalty of death or life in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for information purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding work of the NYPD and ATF.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorney Dominic A. Gentile is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Activities of the U.S. Attorney’s Office During the Lapse in AppropriationsRead the Press Release
Throughout the recent 35-day lapse in appropriations, press releases for the U.S. Attorney’s Office for the District of Minnesota were very limited as required by Department of Justice rules. However, during any lapse in Congressional appropriations, the Department of Justice’s essential public safety and national security missions continue unabated. As a result, the U.S. Attorney’s Office and federal investigative agencies continued to work full-time alongside their state, local, and tribal partners on all criminal cases and prosecutions. Highlighted below are convictions and sentencings that occurred between December 22, 2018 and January 25, 2019.
On January 2, 2019, MICHAEL SCOTT HANUMAN, 27, pleaded guilty before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minnesota, to one count of possession with intent to distribute methamphetamine and one count of possessing a firearm in furtherance of the drug-trafficking crime. HANUMAN is scheduled to be sentenced on May 14, 2019. This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Dakota County Sheriff’s Office, and the Dakota County Drug Task Force. Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
On January 8, 2019, PRESLEY AARON PELTIER, 22, pleaded guilty to stealing four firearms from a federally licensed firearms dealer. PELTIER entered his guilty plea before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minnesota. This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lakeville Police Department. Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
On January 14, 2019, AVIEL LI GOODMAN, 63, was sentenced to 87 months in prison for receipt of child pornography. GOODMAN, a St. Paul psychiatrist, pleaded guilty to one count of receipt of child pornography on July 20, 2018. This case was the result of an investigation conducted by the FBI. Assistant U.S. Attorneys Katharine T. Buzicky and Carol M. Kayser prosecuted the case.
On January 15, 2019, NOEL DEBRA HALL, 41, was sentenced to 60 months in prison for possession with the intent to distribute heroin and fentanyl. HALL pleaded guilty on September 13, 2018, to a one-count felony information. This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Surya Saxena.
On January 16, 2019, STEVEN MITCHELL GANT, 38, pleaded guilty to conspiring to distribute heroin on the White Earth Indian Reservation. GANT entered his guilty plea before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minnesota. This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force, the West Central Minnesota Drug & Violent Crimes Task Force, the White Earth Police Department, and the Becker County Sheriff’s Office. Assistant U.S. Attorney Deidre Y. Aanstad is prosecuting the case.
On January 16, 2019, KELVIN BAEZ, 34, was found guilty of methamphetamine and firearms violations following a jury trial before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minnesota. BAEZ is scheduled to be sentenced on May 14, 2019. This case is the result of an investigation conducted by the Drug Enforcement Administration. Assistant U.S. Attorney David P. Steinkamp is prosecuting the case.
On January 17, 2019, PHILLIP MARK REINHART, 38, pleaded guilty to production and attempted production of child pornography. REINHART entered his guilty plea before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota. A sentencing hearing is scheduled for June 6, 2019. This case is the result of an investigation conducted by the FBI and the Nicollet County Sheriff's Office. Assistant U.S. Attorney Manda M. Sertich is prosecuting the case.
On January 22, 2019, AMOS KIPROP KOECH, 44, was convicted by a federal jury for sex trafficking a 15-year-old minor. KOECH’S codefendant, ANDRE MATHIS, JR., 33, pleaded guilty on January 10, 2019, to one count of sex trafficking of a minor. This case is the result of an investigation conducted by the FBI and the Duluth Police Department. Assistant U.S. Attorney Laura M. Provinzino is prosecuting the case with Special Assistant U.S. Attorney Jonathan D. Holets.
On January 22, 2019, DAKOTA JAMES LAFAVE, 29, pleaded guilty to assault with a dangerous weapon in aid of racketeering, witness retaliation, and discharge of a firearm in furtherance of a crime of violence. LAFAVE entered his guilty plea before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota. This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, the Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the Mille Lacs Tribal Police Department, and the Minnesota Department of Corrections. Assistant U.S. Attorneys Andrew R. Winter and Bradley Endicott are prosecuting the case.
On January 23, 2019, JOSE MANUEL ORDONEZ, JR., 47, was sentenced to 120 months in prison for his role in a $150 million international Ponzi scheme. ORDONEZ pleaded guilty on February 13, 2018, to one count of conspiracy to commit mail fraud. This case was the result of an investigation conducted by the FBI, United States Postal Inspection Service, and the Minnesota Commerce Fraud Bureau. Assistant U.S. Attorneys Kimberly A. Svendsen and Joseph H. Thompson are prosecuting the case.
On January 23, 2019, two defendants in separate cases, DARVELL DEVONTRE EDWARDS, 27, and CAMERON DAVON DURAND, 25, each pleaded guilty to one count of being a felon in possession of a firearm. EDWARDS and DURAND entered their guilty pleas before Judge Eric C. Tostrud in U.S. District Court in Saint Paul, Minnesota. These cases are thedid result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Saint Paul Police Department. They are being prosecuted by Assistant U.S. Attorneys Benjamin Bejar and Thomas Calhoun-Lopez.
On January 24, 2019, RASHAD YASIN DAVIS, 27, pleaded guilty to one count of criminal damage to property on the Bois Forte Indian Reservation. DAVIS entered his guilty plea before Judge Nancy E. Brasel in U.S. District Court in Saint Paul, Minnesota. This case was the result of an investigation conducted by the FBI and the Bois Forte Police Department, with assistance from the St. Louis County Sheriff’s Office and the Breitung Police Department. Assistant U.S. Attorney Deidre Y. Aanstad is prosecuting the case.
On January 25, 2019, ROGER ERICK SPLETTSTOESZER, 54, was sentenced to 210 months in prison for distribution, receipt, and possession of child pornography. SPLETTSTOESZER was found guilty on April 19, 2018, following a four-day jury trial. This case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Sarah E. Hudleston and Miranda E. Dugi.
“I am honored to lead an office comprised of public servants who are dedicated to the shared mission of pursuing justice,” said United States Attorney Erica H. MacDonald. “I want to thank each and every one of these individuals for their selfless and unwavering service during the course of the partial government shutdown.”
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
A Tennessee Physician, Two Florida Clinic Owners, and a Kentucky Man Convicted for Roles in Tennessee-Based Pill Mill OperationRead the Press Release
LONDON, Ky. – A Tennessee doctor, two clinic owners from the Miami, FL area, and a Woodbine, KY man were convicted today by a federal jury in London on oxycodone-trafficking charges. Three defendants were also convicted of multiple counts of money laundering.
After three days of deliberations following a four-week trial, the jury convicted Timothy Gowder, 71, from Chattanooga, Tennessee, Anwar Mithavayani, 55, and Pete Tyndale, 47, clinic owners from Florida, of conspiracy to distribute oxycodone and oxymorphone. James Bradley Combs, 41, from Woodbine, Kentucky, was convicted of possession with intent to distribute oxycodone. One defendant, Gary Moore, 67, from Chattanooga, Tennessee was acquitted.
According to testimony at trial, Gowder and the clinic owners worked together to run an illicit pain clinic near Chattanooga, Tennessee, called Tennessee Pain Institute (or “TPI”), which drug addicts and drug traffickers in Kentucky and elsewhere used as their supplier. The evidence further revealed that, after the Tennessee Department of Health investigated TPI’s doctors and federal law enforcement executed a search warrant at TPI, clinic owners Tyndale and Mithavayani opened a new pain clinic in North Carolina to cater to the same Kentucky population.
Gowder was indicted in May of 2017, while Mithavayani, Tyndale, and Combs were indicted in January of 2018.
Co-defendant Larry Karr of Keavy, Kentucky, pled guilty to the drug trafficking charge in May of 2018, and was later sentenced to 108 months in federal prison.
“Prosecuting the unlawful distribution of opioids by medical professionals is a foremost priority of the Department of Justice and our Office,” said United States Attorney Robert M. Duncan, Jr. “The defendants contributed to the opioid crisis that is ruining lives in our District and throughout the Nation. I commend the law enforcement agencies involved for their thorough investigation, which ultimately resulted in the jury’s verdict that holds these defendants accountable for their actions.”
U.S. Attorney Duncan; Special Agent in Charge D. Christopher Evans of the Drug Enforcement Administration’s Louisville Field Division; Special Agent in Charge Matthew Line of the Internal Revenue Service, Criminal Investigation Division; Andy Beshear, Kentucky Attorney General; and Richard W. Sanders, Commissioner of Kentucky State Police jointly announced the convictions.
The investigation was conducted by the DEA, the IRS, and the Kentucky Attorney’s General Office and the KSP. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Gregory Rosenberg.
The Court will set a date for the defendants to appear for sentencing. Combs faces a maximum sentence of 20 years in prison, Gowder faces up to 40 years, while Mithavayani and Tyndale face up to 120 and 130 years in prison, respectively. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing a sentence.
4 Individuals Indicted on Firearm Charges as Part of Federal Investigation That Disrupted Missouri-to-Chicago Gun PipelineRead the Press Release
CHICAGO — A convicted felon from Chicago was arraigned today on a federal firearm charge for illegally possessing three handguns on the city’s South Side.
DERRICK CLAIBORNE, 43, of Chicago, pleaded not guilty to one count of illegal possession of a firearm by a convicted felon. U.S. Magistrate Judge Sidney I. Schenkier ordered Claiborne to remain detained in federal custody.
Claiborne was one of four defendants indicted last month as part of a federal investigation that disrupted a Missouri-to-Chicago firearms pipeline. The probe, led by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, revealed that numerous handguns were brought to Chicago last year by two Missouri residents – JUMONTA MOORE and MARCUS INGRAM, according to a criminal complaint and affidavit previously filed in the case. Moore and Ingram then supplied the guns to JAMES SAUNDERS, a convicted felon from Chicago, who illegally sold some of the firearms to confidential informants who were cooperating with law enforcement, the complaint states. Saunders also allegedly sold three guns to Claiborne.
All four defendants were recently arrested.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of ATF; and Eddie Johnson, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Jared C. Jodrey.
Saunders, 47, is charged with five counts of illegal possession of a firearm by a convicted felon, and one count of dealing firearms without a license. On Friday, Saunders pleaded not guilty to the charges. He remains in federal custody.
Ingram, 26, of Charleston, Mo., is charged with two counts of illegal transportation of a firearm by a person under felony indictment. Ingram allegedly transported five handguns to Chicago last fall while under an unrelated felony indictment in Scott County, Mo. Ingram pleaded not guilty to the federal charges during his arraignment earlier this month. He remains in federal custody.
Moore, 20, of Sikeston, Mo., is charged with one count of illegal transportation of a firearm by a person under felony indictment. Moore allegedly transported two handguns to Chicago last June while under an unrelated felony indictment in New Madrid County, Mo. Moore pleaded not guilty to the federal charge during his arraignment last month. Judge Schenkier ordered Moore released from custody on a $50,000 appearance bond.
Claiborne was previously convicted of two felonies, including a gun-related conviction, and was not lawfully allowed to possess a firearm when he allegedly purchased three handguns from Saunders last fall in Chicago’s Woodlawn neighborhood.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Dealing firearms without a license is punishable by a maximum sentence of five years in prison. Illegal possession by a convicted felon carries a maximum sentence of ten years. Illegal transportation by a person under felony indictment is punishable by up to ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Friday 8 February 2019
Watertown Woman Convicted of Assaulting Federal OfficerRead the Press Release
ALBANY, NEW YORK – A jury voted yesterday to convict Catherine M. Melhuish, age 34, of Watertown, New York, of assaulting a federal officer in St. Lawrence County, following a 4-day trial.
The announcement was made by United States Attorney Grant C. Jaquith and William Maddocks, Deputy Chief Patrol Agent, U.S. Border Patrol, Swanton Sector.
United States Attorney Grant C. Jaquith said: “Today’s conviction demonstrates our commitment to enforcing federal laws that protect those who protect and serve our country and communities, such as the U.S. Border Patrol Agent assaulted by the defendant.”
U.S. Border Patrol Swanton Sector Deputy Chief Patrol Agent William Maddocks stated: “Swanton Sector appreciates the support of the U.S. Attorney’s Office for the Northern District of New York in their diligent prosecution of this case. This conviction shows that assaults on law enforcement will not be tolerated.”
Melhuish, a lawful permanent resident of the United States and citizen of Canada, assaulted a Border Patrol Agent at approximately 1 a.m. on September 18, 2017. The agent encountered Melhuish while responding to a request from the St. Lawrence County Sheriff’s Office, which had been contacted by members of the public about a woman wearing dark clothing and walking on State Route 37 near the United States/Canada border.
As part of the agent’s investigative stop, he asked Melhuish for her identification, which she agreed to provide. The agent touched Melhuish’s hand when he reached out to steady the identification so he could read the information off of it. Melhuish became agitated, spit in the agent’s face and bit the agent’s hand.
Melhuish will be sentenced on February 19 by Senior United States District Judge Thomas J. McAvoy.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
Waterloo Methamphetamine User Sentenced to over a Year for Illegally Possessing a HandgunRead the Press Release
A Waterloo man who illegally possessed a firearm and ammunition while being a user of marijuana and methamphetamine was sentenced today to more than one year in federal prison.
Scott Francis Gilson, age 38, from Waterloo, Iowa, received the prison term after a September 4, 2018 guilty plea to possession of a firearm and ammunition by a drug user.
Evidence at sentencing showed police stopped Gilson after observing him drive erratically on a motorcycle. During the traffic stop, police seized a .45 caliber firearm from his waistband. The firearm was loaded with the hammer cocked back.
Gilson was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Gilson was sentenced to 12 months’ and one day imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Gilson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Bureau of Alcohol Tobacco and Firearms and the Waterloo Police Department. This case was brought as part of Project Safe Neighborhoods (PSN). 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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-206.
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Waterloo Felon Sentenced to over Four Years for Illegally Possessing a FirearmRead the Press Release
A Waterloo man who possessed a firearm after being convicted of a felony offense was sentenced today to more than four years in federal prison.
Brady Lee Morgan, age 25, from Waterloo, Iowa, received the prison term after a July 13, 2018 guilty plea to possession of a firearm by a felon.
Evidence during the case showed Morgan was in possession of a firearm after police received information that he was in possession of a firearm and cocaine. Police located Morgan at a residence in Waterloo and arrested him pursuant to a previously issued state warrant. Immediately next to Morgan, in a bag, was a firearm as well as drug packaging material. Morgan had previously been convicted of assault causing serious injury after participating in a fight that permanently left the victim without the use of one eye.
Morgan was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Morgan was sentenced to 57 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). 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.
Morgan is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Bureau of Alcohol Tobacco and Firearms and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2030.
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Waterbury Man Sentenced to 2 Years in Federal Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that, FELIX COLON, 21, of Waterbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 24 months of imprisonment, followed by three years of supervised release, for trafficking heroin.
According to court documents and statements made in court, in the fall of 2017, the FBI, ATF and Waterbury Police Department began an investigation into drug trafficking by suspected members of “Addicted to Money,” also known as “ATM,” a violent street gang operating in Waterbury. The investigation, which included court-authorized wiretaps, physical surveillance and controlled purchases of heroin and crack cocaine, resulted in federal charges against 11 individuals.
Intercepted communications revealed that Colon purchased and sold distribution quantities of heroin.
Colon was arrested on July 17, 2018. On that date, a search of his residence revealed approximately 56 gross grams of heroin packaged for distribution, approximately 41 gross grams of marijuana, a .40 caliber semiautomatic pistol, .40 and .45 caliber ammunition, a digital scale, and multiple cell phones.
The National Integrated Ballistic Information Network (NIBIN) has identified the seized .40 caliber pistol as the firearm that was used in a shooting of a member of a rival gang in Waterbury in May 2017. The investigation into the shooting is ongoing.
Colon has been detained since his arrest. On November 16, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
This matter is being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Waterbury Police Department’s Gang Task Force. The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and Natasha M. Freismuth.
Virgin Islands U.S. Attorney's Office Staff Receives Prestigious DOJ Award for Post-Hurricanes Leadership and ServiceRead the Press Release
U.S. Attorney Gretchen C.F Shappert announced today that a nine-member administrative team in the Virgin Islands U.S. Attorney’s Office (VI-USAO) has been recognized for their extraordinary service, following Hurricanes Irma and Maria. In September of 2017, the VI-USAO became the only USAO to encounter two Category 5 hurricanes in less than two weeks. Staff members were without power and running water – many for over 100 days. A core team worked tirelessly to ensure that VI-USAO offices in both St. Thomas and St. Croix could resume operations and continue the work of the Department of Justice. The District Court opened the court a few weeks after the storms, thereby requiring the USAO to resume operations under hazardous conditions. According to U.S. Attorney Shappert, "Alphonso Andrews, Meredith Edwards, Melissa Flottman, Antoinette M. James-Alleyne, James Latham, Daniel Leinenbach, Ingrid Richardson, Sophia Starr, Sigrid Tejo-Sprotte, and Keima Willett worked tirelessly, as an ad hoc administrative team, to aid the VI-USAO in recovery efforts. They worked for several months, in the office and in their homes, including during periods when Internet service was non-existent, to ensure that the USAO was operational. Because of their dedication, federal prosecutors and staff were able to serve the needs of this community after the storms."
The Department of Justice Director’s Award for Superior Performance by an Administrative Team will be presented to the VI-USAO staff during an awards ceremony at the Department of Justice in Washington, D.C., hosted by Department leadership, later this year. "The Virgin Islands U.S. Attorney’s Office is one of the smallest of the 94 U.S. Attorney’s Offices in the nation, but it is also one of the most dynamic and dedicated federal offices anywhere," Shappert said. "We punch above our weight. And that’s what it means to be ‘VI Proud and VI Strong.’"
United States Files False Claims Act Suit Against Mission Support Alliance LLC, Several Lockheed Affiliates, and Jorge Francisco Armijo for Inflated Information Technology Subcontract CostsRead the Press Release
The United States has filed suit against Mission Support Alliance LLC (MSA), Lockheed Martin Corporation (LMC), Lockheed Martin Services Inc. (LMSI), and Jorge Francisco Armijo for alleged false claims and kickbacks in connection with a multi-billion dollar contract with the Department of Energy (DOE) to support the environmental cleanup at the Hanford Site near Richland, Washington, the Justice Department announced today. MSA is a Delaware Limited Liability Corporation that, during the time alleged in the lawsuit, was owned by Lockheed Martin Integrated Technology LLC, Jacobs Engineering Group Inc., and Centerra Group (formerly G4S Government Solutions, and, prior to that, Wackenhut Services Inc.). Both Lockheed Martin Integrated Technology and LMSI were wholly-owned subsidiaries of LMC. Mr. Armijo is a Vice President of LMC and also served as a President of MSA during the time period in question.
“Where Congress has allocated money for specific purposes, we will not tolerate unlawful conduct by contractors who seek to enhance their profits at the expense of taxpayers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This lawsuit demonstrates that the Department of Justice will work tirelessly to ensure that public funds are used for the important purposes for which they are intended.”
The multi-billion dollar MSA Contract with DOE required MSA to provide a number of site-wide services to DOE and to other contractors involved in the clean-up of the Hanford Site. The allegations in the complaint relate to the management and technology solution services that MSA agreed to provide at Hanford. In January 2010, without competition, MSA awarded its affiliate, LMSI, a $232 million subcontract to perform that work from Jan. 1, 2010 through June 2016.
The United States’ complaint alleges that the defendants knowingly made or caused false statements to the DOE regarding the amount of profit included in the billing rates for LMSI under the subcontract it was awarded by its affiliate, MSA. The complaint also alleges that the defendants’ claims for these inflated rates violated the False Claims Act.
In addition, the complaint alleges that LMC made payments of more than $1 million to Armijo and other MSA executives in order to obtain improper favorable treatment from MSA with respect to the award of the LMSI subcontract at the inflated rates. The complaint further alleges that these payments violated the Anti-Kickback Act.
“Fraud, corruption, and self-dealing at Hanford will simply not be tolerated,” said U.S. Attorney Joseph H. Harrington for the Eastern District of Washington. “The critical mission of cleaning up the Hanford Site in a safe, timely, environmentally responsible, and cost-effective manner is too important to the public and the residents of this region.” Harrington went on to state, “This enforcement action demonstrates and underscores the United States Attorney’s Office’s commitment to working with our law enforcement partners to hold fraudsters accountable, whether they are individuals, businesses, or the nation’s largest corporations.”
“The Department of Energy Office of Inspector General is committed to ensuring the integrity of Departmental contracts and financial expenditures,” said Teri L. Donaldson, Department of Energy Inspector General. “We take allegations of false claims, overbilling and kickbacks very seriously and will aggressively investigate these matters to ensure efficiency throughout DOE programs. We appreciate the efforts of the DOJ in pursuing these allegations and will continue our collaboration with the DOJ to investigative those who seek to defraud Department programs.”
“The Department of Energy identified the possibility of fraud to the Department of Justice and DOE Office of Inspector General during DOE’s administration of the contract,” said Joe Franco, Deputy Manager for the Richland Operations Office at Hanford. “DOE appreciates the efforts of the Department of Justice and the Inspector General, and we will continue to assist with their investigation and prosecution of the alleged fraudulent activity. DOE will not tolerate fraudulent behavior by its contractors and will continue to strengthen its federal oversight at Hanford.”
This matter is being handled by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of Washington, and the DOE-OIG. The claims asserted by the United States are allegations only; there has been no determination of liability.
The lawsuit is captioned United States v. Mission Support Alliance, LLC, et al.(E.D. Wash.).
United States Attorney’s Office Hosts Annual Office Awards CeremonyRead the Press Release
Jackson, Miss. - Yesterday, U.S. Attorney Mike Hurst recognized members of the U.S. Attorney’s Office for the Southern District of Mississippi and its partners with the presentation of the Southern District’s annual awards for superior performance in 2018.
"These individuals did extraordinary work both inside and outside the U.S. Attorney’s Office last year to further the cause of justice. I am proud not only to present them with these awards but also for the opportunity to work alongside them. Their devotion to duty and call to service have made the lives of Mississippians better, and their work has literally meant that our tax dollars have been rightfully returned and safeguarded. Every American citizen can rest easier knowing that these talented men and women are standing watch on the shores of liberty, ensuring every day that justice is done," said U.S. Attorney Hurst.
Robert E. Hauberg Award for Distinguished Service
This award is named in honor of the achievements of former U.S. Attorney for the Southern District of Mississippi Robert E. Hauberg, the longest serving United States Attorney in the history of our nation. The Hauberg Award is presented annually by this District to an employee who has displayed superior achievement in their assigned duties and who has gone above and beyond the call of duty in some additional public service that makes a significant impact on the community.
The 2018 recipient of the Robert E. Hauberg Award is Assistant United States Attorney Angela Williams. Ms. Williams is a talented litigator and tireless worker. She handles affirmative and defensive cases and serves as the Civil Division’s Senior Litigation Counsel and the office’s Ethics Officer. Last year, she handled several employment discrimination cases, including a particularly complex and sensitive case brought by a doctor against the Veterans Affairs Administration.
Ms. Williams also spent considerable time on multiple False Claims Act cases, including one of the largest cases in the District. She successfully defended the United States in a collateral
attack filed by a former mayor in Mississippi, who had previously been criminally prosecuted by this office for bribery.
In her role as the Civil Division’s Senior Litigation Counsel, Ms. Williams developed a training plan for newly hired paralegals, planned and executed a joint civil training with the U.S. Attorney’s Office for the Northern District of Mississippi, fielded numerous legal questions from colleagues, reviewed colleagues’ written work product, and updated the mentorship manual for the office.
Finally, Ms. Williams has been extensively involved in her Hattiesburg community, and she volunteers with the book buddy program at Johnson Elementary School in Jackson under our office’s Project EJECT initiative. As part of the Hattiesburg Public School District Foundation, Ms. Williams helped establish a scholarship for low income students. She is also very active in her church and she participates in a number of volunteer programs in the Hattiesburg area.
James B. Tucker Award for Superior Prosecutorial Service in Criminal Justice
This award is named for James B .Tucker, the first person to serve as Chief of the Criminal Division in the Southern District. Mr. Tucker distinguished himself in his position and gained a national reputation as a tough but judicious prosecutor throughout the state and throughout the U.S. Department of Justice. The award is presented each year to the Criminal Assistant United States Attorney having demonstrated superior prosecutorial service in the Criminal Division throughout the year.
The 2018 recipient of the James B. Tucker Award is Assistant United States Attorney Mary Helen Wall.
Ms. Wall is receiving this award for her incredible work in prosecuting and continuing to prosecute the largest Health Care Fraud case in the history of state, which has come to be known as the "Compounding Pharmacy" case in Hattiesburg, involving close to $1 billion in fraud by defendants using pharmacies, doctors and unnecessary compounding prescriptions to drive up prices charged to TRICARE, the healthcare system for the military. In addition to prosecuting these criminals, Ms. Wall has also helped to recover approximately $29 million through forfeiture. Her work on this case has already led to eight guilty pleas, one conviction at trial, and an upcoming trial of three more defendants.
Ms. Wall also helped prosecute violent crime cases in the City of Jackson under our office’s Project EJECT initiative, being personally responsible for the prosecution of 13 Project EJECT cases.
Finally, Ms. Wall’s leadership and initiative in assisting and mentoring new AUSA’s in our office is reminiscent of former Criminal Chief James Tucker and further merits her receiving this award.
Daniel E. Lynn Award for Superior Litigation Service in Civil Litigation
This award is named for Daniel E. Lynn, the first person to serve as Chief of the Civil Division in the Southern District. Mr. Lynn set the highest standards of excellence through selfless competence, integrity, and professionalism. The award is presented each year to the Assistant United States Attorney having demonstrated the most superior litigation service affecting the Civil Division throughout the year.
The 2018 recipient of the Daniel E. Lynn Award is Assistant United States Attorney Kristi Johnson for her affirmative, appellate, and defensive case work.
In her first year as the Affirmative Civil Enforcement attorney, Ms. Johnson recovered $1,056,199.00 on behalf of the United States. From the outset, she worked well with a diverse group of federal agencies, including the Drug Enforcement Administration’s diversion group and the National Aeronautics and Space Administration’s Office of Inspector General.
Ms. Johnson’s largest single recovery came from a healthcare fraud case involving a group of physicians in Laurel, Mississippi, whereby the group agreed to pay $817,635.00 to resolve the claims under the Federal Claims Act. She also successfully defended two cases on appeal, one involving a medical malpractice case against the United States and one involving a suit brought by a civilian employee against Camp Shelby for wrongful termination.
Ms. Johnson defended several federal agencies against a myriad of claims, including employment actions taken by the Veteran’s Affairs Administration, the United States Air Force and United States Marshals Service. In addition to all of her civil division work, Ms. Johnson also handled three criminal cases involving violent offenders as part of Project EJECT.
Paulette Womack Support Staff Award for Superior Performance
This award was named in honor Paulette Womack, a long-time, much-loved member of the office who served as Secretary to the first Criminal Division Chief and as the Victim Witness Coordinator for the Southern District. She performed her work with tenacity, persistence and professionalism. This award is presented each year to the Support Staff Employee having demonstrated the most superior efforts in support of the mission of the District, whether it be in the area of administration or legal support.
The 2018 recipient of the Paulette Womack Award is Human Resource Specialist Cindy Pittman for her work over the past year during which our office saw an unusually large number of vacancies, new hires and human resource issues.
In 2018, our office has had approximately 22 personnel vacancies. Ms. Pittman worked tirelessly to ensure that all job announcements were posted and that the process complied with all government rules, regulations and guidelines. Because of Ms. Pittman’s knowledge, proficiency, skills and abilities, almost all of these positions have been filled. Hiring this many individuals for a myriad of positions in one year is an incredible achievement and something that this office or an office of our size has probably never seen in its history.
In all interactions, Ms. Pittman conducts herself in a professional and courteous manner. When called upon to perform a task or gather information, she always performed it with lightning speed and in a detailed fashion.
For the incredible work she has done during this very unusual year of vacancies and hiring by our office, Ms. Pittman embodies the work ethic, can-do spirit and tenacious attitude of Paulette Womack and for all of these reasons, she received the 2018 Support Staff Award.
Donald R. Burkhalter Award for Exemplary Leadership
This is a new award established this year, named for longtime First Assistant United States Attorney Donald R. Burkhalter. This award seeks to recognize, via nomination throughout the office, the employee who has demonstrated extraordinary courage and leadership throughout the year, no matter their position in the office. The award seeks to honor those who lead from action, not a title, who exhibits a positive, upbeat attitude that encourages cooperation and teamwork, and who works tirelessly in advancing the mission and goals of the U.S. Attorney’s Office and the Department of Justice.
The first ever recipient of the Donald R. Burkhalter Award for Exemplary Leadership is Criminal Division Legal Assistant Robin Fish.
Throughout the year, Ms. Fish has been a beacon of perseverance to her friends and colleagues as she bravely and tirelessly conquers both personal and professional challenges. Robin brings a wealth of knowledge and experience to the office along with a positive attitude that makes the work environment better for everyone. She is often seen after hours mentoring both support staff and AUSAs, simultaneously ensuring professional growth of our team and the overall advancement of the office’s mission and goals. Her excellent reputation also extends outside of our office with many members of the court staff relying on her help and expertise. Robin is conscientious, skilled, hardworking and driven. She anticipates what is necessary to ensure the office’s success and takes the initiative to get it done. Her distinctive accomplishments over the past year make her the ideal recipient of this award.
George L. Phillips Distinguished Community Support Award
This award is named for former U.S. Attorney George L. Phillips, who began his service as the youngest U.S. Attorney in the nation, went on to serve under three Presidents for 14 years, and is credited with creating DOJ’s Law Enforcement Coordinating Committee. This award seeks to recognize individuals outside the U.S. Attorney’s Office who have contributed significantly to the increased coordination of law enforcement, who have substantially advanced the goals and mission of the U.S. Attorney’s Office, and who have exhibited genuine, consistent support of law enforcement generally and the U.S. Attorney’s Office in particular.
The 2018 recipient of the George Phillips Award is Mississippi Department of Public Safety Commissioner Marshall Fisher.
Commissioner Fisher is a longtime friend of this office, having served as the Agent in Charge of Drug Enforcement Administration operations in Mississippi for a number of years. After retiring from DEA, he served briefly as the state director for the Mississippi Gulf Coast High Intensity Drug Trafficking Area. From 2005-2014, he served as Director of the Mississippi Bureau of Narcotics, and, in 2015, he was called upon again to serve his state as the Commissioner of the Mississippi Department of Corrections. In January 2017, he was appointed Commissioner of the MS Department of Public Safety, where he serves today.
George Phillips was known nationally for many things as U.S. Attorney, but one of his most prominent accomplishments was creating the DOJ’s Law Enforcement Coordinating Committee. Commissioner Fisher is most deserving of this award because, throughout his career, he has coordinated joint operations involving DEA, Mississippi Bureau of Narcotics, Immigration and Customs Enforcement, Federal Bureau of Investigation, Bureau of Alcohol Tobacco and Firearms, Mississippi Bureau of Investigation, Mississippi Highway Patrol and numerous other federal, state and local law enforcement agencies.
U.S. Attorney's Office Launches New Opioid Abuse Prevention Public Service AnnouncementsRead the Press Release
BOSTON – Today, U.S. Attorney Andrew E. Lelling announced the launch of a new wave of public service announcements primarily aimed at increasing awareness about the dangers and consequences of abusing, selling and sharing opioids. The ads can be found at www.justice.gov/usao-ma/ResistTheRisk.
The scope of the opioid crisis requires a multi-faceted government response that includes educating the public about opioids to prevent addiction before it starts. The U.S. Attorney’s Office, with insight and feedback from various stakeholders, including local law enforcement and first responders, public health professionals, high school students, and formal and informal focus group participants, developed various public service announcements that provide targeted information about opioids. The ads tackle a wide variety of topics such as what constitutes an opioid, the importance of properly storing prescription medications, the dangers associated with abusing pain pills – including mixing pain pills with alcohol or other controlled substances, as well as the laws associated with sharing and distributing opioids, and the legal rights afforded to individuals living with opioid dependence.
“Our mission at the Justice Department is not just to prosecute crime but to prevent it,” said U.S. Attorney Lelling. “We are in the midst of a major public health crisis. Every day federal authorities see people whose lives are being destroyed by opioids, whether those drugs came from street-level dealers or diverted prescriptions. By this point, every drug dealer knows that heroin and fentanyl are killing thousands of people a year, and I will continue to seek the highest sentences available for those who prey on addicts by selling them these deadly substances. But that’s not enough: we should also play a role in educating the public about the dangers of recreational opioid use, of counterfeit pills bought on the street, of mixing prescription opioids with alcohol or other controlled substances, and about the need for increased treatment and rehabilitation opportunities for people in the grip of opioid addiction.”
The new public service announcements released today supplement existing materials launched in November 2017. The new wave includes four 30-second videos (produced by Ted Reed Productions, LLC), six short audio messages, and an animation. The ads will be disseminated widely across both traditional and digital media platforms – from recreational venues, cinemas, television and radio stations, to online music streaming sites, Google advertising, and the most popular social media platforms. While each message addresses a different aspect of the crisis, they all serve the same goal: prevention.
For more information about the campaign, please visit www.justice.gov/usao-ma/ResistTheRisk.