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Friday 8 February 2019
U.S. Attorney's Letter Announcing Launch of PSAs to Address Opioid CrisisRead the Press Release
United States Attorney Andrew E. Lelling offers a new wave of public service announcements designed primarily to increasing awareness about the dangers and consequences of abusing, selling and sharing prescription opioids.
Over the past few years, Massachusetts has ranked as one of the hardest hit in the nation with opioid-related overdose deaths. To help address the crisis, the U.S. Attorney’s Office has created these radio and TV PSAs to remind the public of the dangers of opioid abuse.
“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. We should 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 opioid-related PSAs released by the U.S. Attorney’s Office features four :30 TV PSAs and six :30 second radio PSAs. Each of the messages address a different aspect of the opioid crisis.
By utilizing these Massachusetts-based PSAs in your daily programming, you will help to educate the citizens of Massachusetts.
For more information contact: Kristina Mastropasqua, Public Affairs Specialist, United States Attorney’s Office, at [email protected] or 617-748-3147
U.S. Attorney hires five new attorneysRead the Press Release
BILLINGS – U.S. Attorney Kurt Alme announced today the recent hiring of five new assistant U.S. attorneys for the District of Montana.
Two of the attorneys are in the Billings office, while two attorneys are in the Great Falls office and one attorney is in the Helena office.
“I am pleased that these five new attorneys, with excellent education and experience, have agreed to join our office. They received high praise from past employers and other references as to their abilities, and importantly, their character and ethics,” Attorney Alme said. “Their addition will help our office keep the people of Montana safe from meth-driven violent crime, address violent and drug crime on our reservations and fight prescription pill diversion.”
Joining the Billings office’s criminal division are Karla Painter and Julie Patten:
- Painter, from Huntley, received her undergraduate degree from Montana State University – Billings in 2008 and her law degree from the University of Montana in 2011. Painter served as a law clerk for Montana Supreme Court Justice Beth Baker for one year then joined the Missoula County Attorney’s Office, where she advanced to become a senior deputy county attorney prosecuting violent felony and financial crimes.
- Patten, from the White Sulphur Springs area, received her undergraduate degree from the University of Montana in 2007 and her law degree from UM in 2011. Patten joined the Yellowstone County Attorney’s Office in 2011 and advanced to become a senior deputy county attorney. She prosecuted violent crimes and served on the felony drug court team. Patten also represented the Yellowstone County Attorney’s Office on the Project Safe Neighborhoods task force, which is a federal Department of Justice initiative to bring together multiple law enforcement agencies to fight meth-driven violent crime.
Joining the Great Falls office’s criminal division are Kalah A. Paisley and Cassady A. Adams:
- Paisley, from Salem, OR, received her undergraduate degree from Western Oregon University in 2004 and her law degree from Georgetown University, Washington D.C., in 2007. Paisley served as deputy legal counsel for the Crow Nation from 2008 to 2012. Beginning in 2013, Paisley was a prosecuting attorney for Clark County, Washington. Paisley also serves as a judge advocate for the Army National Guard, serving a deployment in the Middle East from June 2017 to March 2018.
- Adams, from Mobile, AL, received her undergraduate degree from Tulane University, LA, in 2012, and her law degree from the University of Colorado in 2015. After graduation, Adams worked as a deputy district attorney for the 11th Judicial District Attorney’s Office in Colorado.
Joining the Helena office’s affirmative civil enforcement unit is Michael A. Kakuk.
- Kakuk, from Helena, received his undergraduate degree from St. Cloud State University, MN, in 2003, and his law degree from Willamette University, Oregon, in 2007. Kakuk began as an honors attorney then worked as an assistant attorney general with the Oregon Department of Justice. In 2013, Kakuk became an attorney with the Office of the Montana State Auditor where he prosecuted both civil and criminal violations of Montana law. He also was an adjunct professor, teaching business law at Helena College, with the University of Montana.
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U.S. Attorney Pak announces the appointment of thirteen new Assistant U.S. AttorneysRead the Press Release
ATLANTA – U.S. Attorney Byung J. “BJay” Pak announced the appointment of thirteen new Assistant U.S. Attorneys who will immediately employ their talents to support the Northern District of Georgia’s (NDGA) mission to enforce the law and defend the interests of the citizens we serve in this district.
“Citizens expect exceptionally talented and dedicated lawyers to represent the United States in federal court,” said U.S. Attorney Byung J. “BJay” Pak. “These outstanding Assistant U.S. Attorneys have proven they are committed to excellence in their service to our country, and the citizens of the Northern District of Georgia.”
- Miguel R. Acosta is a former Special Assistant U.S. Attorney in the Western District of Texas, where he prosecuted immigration offenses. Prior to that he was an attorney with Gobel Flakes, LLC in Orlando. Miguel served as a law clerk to U.S. Magistrate Judge Karla Spaulding in the Middle District of Florida. Miguel graduated magna cum laude, from University of Tampa with a degree in Criminology, and he received his law degree, cum laude, from Florida State University College of Law, where he served as Administrative Editor of the Journal of Land Use & Environmental Law. He began his career in the U.S. Air Force JAG Corps, and is currently a JAG in the Florida Air National Guard. Miguel is a member of the Criminal Division.
- Carolyn “Tippi” Cain Burch handled complex civil litigation and appeals for Chalmers Burch & Adams LLC. Earlier in her career, she was a senior litigation associate with King & Spalding LLP and Swift Currie, McGhee, & Hiers, LLP. She was a law clerk for U.S. District Judge C. Ashley Royal in the Middle District of Georgia. Tippi graduated, cum laude, in political science from Auburn University, and received her law degree, cum laude, from the University of Georgia —where she was Vice Chair of the Moot Court Board. Tippi currently serves as Chairwoman of the Board of the Georgia Department of Community Affairs. Tippi is a member of the Appeals and Legal Advice Division.
- Anthony DeCinque was a Senior Associate at Morris, Manning & Martin, LLP, where he handled complex commercial litigation and appellate matters. Previously, he practiced at Mayer Brown LLP and Patterson Belknap Webb & Tyler LLP in NYC. Anthony graduated from Georgia Tech, where he majored in chemical engineering. He graduated from NYU Law School. Upon graduating, Anthony clerked for Hon. Morton Greenberg, U.S. Court of Appeals for the 3rd Circuit. Anthony is a member of the Civil Division.
- Akash Desai joins us from Kilpatrick Townsend & Stockton LLP, where he was an associate in the trademark litigation group. Akash graduated magna cum laude in Political Science from the University of Rochester, and he received his law degree from Vanderbilt University School of Law. He also holds an LLM from NYU Law School. He clerked for Hon. Jon McCalla, U.S. District Judge in the Western District of Tennessee, and for Hon. Aleta Trauger, U.S. District Judge in the Middle District of Tennessee. Akash is a member of the Civil Division.
- Irina Dutcher served as a Chief Senior Assistant District Attorney for the Fulton County District Attorney’s Office. She was previously an Associate at Kilpatrick Townsend and a Law Clerk for Honorable C. Lynwood Smith, U.S. District Judge for the Northern District of Alabama. Irina received her J.D. from Vanderbilt University Law School and her B.A., magna cum laude, from the University of Southern California. Irina is a member of the Criminal Division.
- Soo Jo served as the senior staff attorney for the Magistrate Court of Gwinnett County, and has over two decades of experience representing city and county governments in numerous subject matter areas. Soo received her J.D. from Georgia State University College of Law and her B.S. from Georgetown University. Soo is a member of the Civil Division.
- Alex Joseph was an Assistant Solicitor in the Fourteenth Circuit Solicitor’s Office in Beaufort, S.C., where she handled felony prosecutions. She was previously an Assistant District Attorney in the Ocmulgee Judicial Circuit, serving as the lead prosecutor in several trials. She previously served as an extern for U.S. Magistrate Judge Linda T. Walker, and after law school, she was a law clerk to Superior Court Judge Robert Chasteen of the Cordele Judicial Circuit. Alex received her law degree from the University of Georgia School of Law, cum laude, where she was a member of the Journal of Intellectual Property Law. She received her B.A. in Political Science from Wellesley College. Alex is a member of the Criminal Division.
- Cal Leipold was previously an AUSA in the Middle District of Louisiana, where he prosecuted OCDETF and violent crime cases. Prior to becoming an AUSA, he served as a JAG officer in the Army. He has done a tour of duty in Kandahar, Afghanistan, and was awarded the Bronze Star Medal for his service. An Atlanta native, Cal earned a B.A. in History from Furman University and his law degree from Georgia State College of Law, where he was the Chief Justice of the Student Honor Court, and a member of the Moot Court Board. He also earned an L.L.M. in National Security law, with distinction, from Georgetown University Law Center. Cal is a member of the Criminal Division.
- Mellori Lumpkin-Dawson was a litigator at Greenberg Traurig, where she handled all aspects of employment litigation. Previously, she practiced law at Holland & Knight LLP in Atlanta. Originally from Bainbridge, Georgia, Mellori graduated summa cum laude from Florida A&M University, where she majored in Business Administration. She received her law degree from UC-Berkeley, where she was the Supervising Editor of the California Law Review and served as the Articles Editor of the Berkeley Journal of African-American Law & Policy. From August 2012 to October 2012, she served as a Special Assistant District Attorney for the South Georgia Judicial Circuit, where she tried two felony jury cases to verdict. Mellori is a member of the Civil Division.
- Scott McAfee was a Senior Assistant District Attorney in the Fulton County District Attorney’s Office, where he was a member of the Major Case Division handling murder cases. He previously served as an intern for Justice David E. Nahmias on the Supreme Court of Georgia. He is an Eagle Scout. Scott earned his law degree, cum laude, from the University of Georgia School of Law, and earned his B.A. in Political Science and Music from Emory University. Scott is a member of the Criminal Division.
- Annalise Peters came from Alston & Bird, where she was an associate in the Litigation and Trial Practice Group. She was an intern with our office in the Major Crimes Section from August to December 2013, during which time she co-tried a marriage fraud case through the 3rd year law intern program. Annalise was a law clerk to Hon. Julie Carnes, 11th Circuit Court of Appeals. A native of Atlanta, Annalise earned her law degree from UVA Law School, where she was the Assistant Managing Editor of the Virginia Law Review. She received her B.A. from University of Georgia, summa cum laude, Phi Beta Kappa, and she was the captain of the UGA Varsity Track & Field Team. Annalise is a member of the Criminal Division.
- Teresa Marie Stolze was a Senior Assistant DeKalb District Attorney in the Stone Mountain Judicial Circuit. Teresa has tried over two dozen cases as lead and was an intern in our office on two occasions – from February to May 2007 and from June to August 2009. Teresa served as a law clerk for then-Superior Court Judge Tilman “Tripp” Self III and Judge Edgar W. Ennis, of the Macon Judicial Circuit. She also worked as a law clerk for Judge Steve Jones, who was then on the Superior Court of Athens-Clarke County. She is a double dawg, earning her law degree, cum laude, from UGA Law School, where she was the Managing Board Notes Editor of the Georgia Law Review. She earned her B.A., summa cum laude, Phi Beta Kappa. Teresa is a member of the Criminal Division.
- Samuel Williams served as a Trial Attorney for the U.S. Department of HUD in Atlanta. Previously, he worked as an extern for the U.S. EEOC and as a Judicial Intern for Hon. Linda M. McGee, North Carolina Court of Appeals. Sam received his J.D. from the University of North Carolina, where he was a Chancellor Scholar, and earned his B.A., summa cum laude, from Appalachian State University. Samuel is a member of the Civil Division.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
- Miguel R. Acosta is a former Special Assistant U.S. Attorney in the Western District of Texas, where he prosecuted immigration offenses. Prior to that he was an attorney with Gobel Flakes, LLC in Orlando. Miguel served as a law clerk to U.S. Magistrate Judge Karla Spaulding in the Middle District of Florida. Miguel graduated magna cum laude, from University of Tampa with a degree in Criminology, and he received his law degree, cum laude, from Florida State University College of Law, where he served as Administrative Editor of the Journal of Land Use & Environmental Law. He began his career in the U.S. Air Force JAG Corps, and is currently a JAG in the Florida Air National Guard. Miguel is a member of the Criminal Division.
U.S. Attorney Dunavant Selected to the Tennessee Bar FoundationRead the Press Release
Memphis, TN – U.S. Attorney D. Michael Dunavant was recently elected a Fellow of the Tennessee Bar Foundation, an association of 868 attorneys across the state. Invitations to membership, which is a position of honor, were extended to 24 attorneys this year by the Board of Trustees. The introduction of new Fellows took place in January at the annual Fellows' Dinner in Nashville.
The Foundation functions with a two-fold purpose. First, it honors attorneys who have distinguished themselves in the profession. The Bar Fellows are limited to those outstanding lawyers, judges and teachers of law licensed to practice for a period of 15 years who have: a) demonstrated an uncompromised dedication to integrity and high personal and professional ethical standards; and b) made outstanding and recognized contributions to the legal profession and to the public good.
Since the program’s inception in 1986, the Foundation’s second purpose is to administer the "IOLTA" (Interest on Lawyers Trust Accounts) program of the Tennessee Supreme Court. Through this program, grants have been awarded in excess of $22,000,000 to law-related public interest projects throughout Tennessee, including providers of legal services to the indigent, organizations that seek to improve the administration of justice, and to law students as scholarships. The 2019 IOLTA award recipients in the Western District of Tennessee include, West Tennessee Legal Services, Inc., in Jackson, the Community Legal Center, the Kindred Place (f/k/a Exchange Club Family Center) in Memphis, and Memphis Area Legal Services, Inc.
"I am honored to be selected as a Fellow along with so many distinguished lawyers and judges who have given distinguished service to the administration of justice in Tennessee," Dunavant said. "The Tennessee Bar Foundation is vital to promoting the highest standards of the legal profession, and I look forward to this unique opportunity to support and participate in its important mission."
D. Michael Dunavant is a graduate of the University of Tennessee at Knoxville and the University Of Mississippi School Of Law, and has been practicing law in West Tennessee for 24 years, including 11 years as the District Attorney General for the 25th Judicial District of Tennessee and 11 years in private practice. Dunavant currently serves as the United States Attorney for the Western District of Tennessee.
D. Michael Dunavant, U.S. Attorney Western District TennesseeTransnational sex offender sentenced to Life in Federal PrisonRead the Press Release
Indianapolis - United States Attorney Josh J. Minkler announced today that Chief Judge Jane Magnus-Stinson sentenced Ricky Dean Clark, 37, to a term of life imprisonment without parole for multiple charges involving the sex exploitation of three minor children, including one child who lived in Ireland. In addition, Clark was sentenced for distributing, receiving, and possessing child pornography.
“While no sentence can cure the damage this child predator did to his innocent victims, we can assure the public that Clark will never ever be in the position to harm another child,” said Minkler. “A sentence of life without parole is reserved for the worst of the worst and that is exactly what Chief Judge Magnus-Stinson imposed in this case.”
“This life sentence sends a very strong message to those who would engage in criminal sexual activity and abuse the trust of innocent children,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “I am proud of the diligent work of our agents and law enforcement partners to identify and investigate sexual perpetrators and bring them to justice so they can’t victimize anyone again.”
“As law enforcement, it is our responsibility to protect those who are most vulnerable, especially innocent children. It is a responsibility the men and women of the IMPD do not take lightly,” said Indianapolis Metropolitan Police Department (IMPD) Chief Bryan Roach. “The dedication of our officers, strengthened collaboration with our local, state, and federal law enforcement partners, and critical investments in technology mean we will continue to remove from our community those who would seek to victimize our children.”
When Clark was originally arrested in Hendricks County, he was charged with possessing child pornography; however, an investigation by the Indiana State Police and the Indianapolis Metropolitan Police Department revealed that Clark’s illegal activities with children were much more extensive. Computer forensic examiners found videos showing that Clark had recorded himself engaging in sexually explicit conduct with a prepubescent child in June of 2013. In addition, investigators also found 17 videos, created by Clark, showing a female child engaged in sexually explicit conduct at Clark’s direction. The child, who was less than 13 years of age, lived in Ireland, and Clark’s communication with the child occurred over Skype. Clark also distributed known images of child pornography to this girl in order to convince the child to engage in sexually explicit conduct for him.
Later in the investigation, forensic examiners uncovered evidence that Clark also recorded himself sexually abusing yet another pre-pubescent child. Clark sent these videos to the girl in Ireland, again as a way to encourage her to engage in sexually explicit conduct for him and to convince her that there was nothing wrong with the requests he made of her.
This case came to the attention of law enforcement in the United States through the cooperative work of the National Center for Missing and Exploited Children, which had received citizen complaints about possibly illegal sexual conduct by the defendant. Along with the FBI, the Indiana State Police and the Indianapolis Metropolitan Police Department investigated these tips. The defendant’s criminal conduct was not limited to the United States. In Ireland, a child’s family discovered Clark’s communications with the child, and the family made a report to An Garda Siochana who began their own investigation. In November of 2017, investigators recovered additional evidence from Ireland, showing the defendant’s pattern of conduct with a female child. Minkler noted the cooperation from the Garda as key to the success of the prosecution, saying “We cannot thank members of the An Garda Siochana enough for their thorough work in collecting and preserving evidence, as well as the care that Irish authorities took in working with the victim’s family and our staff. When predators use the internet to abuse children, they hope that the complexities of international investigations will help them to avoid accountability. This child predator found no safe harbor in either Ireland nor in the United States.”
This case was a joint investigation involving the Indianapolis Metropolitan Police Department’s Digital Forensics Unit, the Indiana State Police Cyber Crime Unit, the Indiana Internet Crimes Against Children Task Force, the FBI, and An Garda Siochana (the Irish National Police). Susie’s Place in Brownsburg provided assistance with child interviews. The federal prosecutors working on the matter were Assistant United States Attorneys Kristina Korobov and Steven DeBrota.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.1.
Tobacco Distributor and Two Distribution Companies Charged with Evading California Excise TaxRead the Press Release
SACRAMENTO, Calif. — On December 13, 2018, a federal grand jury returned a 28‑count indictment against Rahman Lakhani, 40, of Naperville, Illinois; N. Ali Enterprises Inc., an Illinois corporation; and 21st Century Distribution Inc., a Nevada corporation, charging them with committing mail and wire fraud, U.S. Attorney McGregor W. Scott announced.
The indictment was unsealed after the arrest of Lakhani on Thursday.
“ATF defines tobacco diversion as the trafficking of tobacco products in avoidance of Federal, State or foreign taxes or in violation of Federal, State or foreign law,” said ATF, San Francisco Field Division, Special Agent in Charge Ray Roundtree. “ATF and the California Department of Tax and Fee Administration worked diligently to put an end to the defendants unlawful acts of tobacco trafficking. Their actions resulted in a loss of millions of dollars in excise taxes for the state of California and the programs those taxes are used to help. ATF is committed to enforcing the law to ensure that the state of California is not a victim of this crime and that everyone is following the rules for the operation of their business.”
“Tax evasion hurts all of us by reducing revenue funding California’s essential state and local services,” said CDTFA Director Nick Maduros. “Nearly 90 percent of the taxes collected on cigarettes and tobacco products are earmarked to fund important programs, including First 5 California. The CDTFA is committed to combating tax evasion to support California’s communities.”
According to court documents, between August 2015 and April 2018, the defendants devised a scheme to avoid paying excise tax on approximately $26,585,000 worth of tobacco products other than cigarettes such as cigars, chewing tobacco and leaf tobacco called “Other Tobacco Products” or OTP. Lakhani owned and operated N. Ali Enterprises and 21st Century Distribution and used them to sell OTP to companies in California, on which all excise tax had purportedly been paid. The result of the scheme was a loss of approximately $5 million to $10 million to the State of California.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the former California State Board of Equalization, sections of which are now the California Department of Tax and Fee Administration. Assistant U.S. Attorneys Michael D. Anderson and Rosanne L. Rust are prosecuting the case.
If convicted, Lakhani faces a maximum statutory penalty of 20 years in prison and a $250,000 or twice the gross loss or gain. If convicted, N. Ali Enterprises Inc. and 21st Century Distribution face up to five years of probation and a $500,000 fine or twice the gross loss or gain caused by the offense. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Texas Man Charged by Criminal Complaint with Conspiring to Provide Material Support to a Foreign Terrorist OrganizationRead the Press Release
A Texas man was charged today with conspiring to provide material support to a foreign terrorist organization. Assistant Attorney General John C. Demers of the National Security Division, U.S. Attorney Erin Nealy Cox for the Northern District of Texas, and Special Agent in Charge Eric Jackson of the FBI’s Dallas Division made the announcement.
Michael Kyle Sewell, 18, of Arlington, Texas, was charged today by criminal complaint in Fort Worth, Texas, with conspiring to provide material support and resources to Lashkar-e-Taiba (LeT), a Pakistani-based foreign terrorist organization. Sewell has been detained pending further court proceedings.
“Sewell allegedly used social media to recruit and encourage an individual to travel overseas to join a foreign terrorist organization and conspired with that person to provide material support to that organization,” said Assistant Attorney General Demers. “The National Security Division is committed to hold accountable those who engage in this behavior.”
“We stay on constant alert for radicals plotting attacks targeting citizens of the United States, here or abroad,” said U.S. Attorney Nealy Cox. “Countering terrorist threats is our highest priority, and we will continue to work to stem the flow of foreign fighters abroad and bring justice to those who attempt to provide material support to foreign terror organizations. I would like to thank the FBI and our Joint Terrorism Task Force partners for all that they do to keep our communities safe.”
“The men and women of FBI Dallas along with our local, state, and federal partners will continue to work diligently against homegrown violent extremists who provide support to any foreign terrorist organization,” said FBI Special Agent in Charge Jackson. “As threats are uncovered to the community we serve, the FBI and its partners must continue to ensure we are vigilant and determined to prevent any harm to this great nation.”
As set forth in the complaint, Sewell recruited an individual, identified in the complaint as coconspirator 1, to join LeT, a designated foreign terrorist organization. Sewell met the coconspirator online and encouraged him to join LeT.
Sewell provided the coconspirator with contact information for an individual who he believed could facilitate the coconspirator’s travel to join the organization. Unbeknownst to Sewell and the coconspirator, the facilitator was an undercover FBI agent.
Sewell coached the coconspirator about what to say to convince the facilitator that he was sincere in his desire to fight for LeT. Sewell also contacted the facilitator to vouch for the coconspirator’s authenticity. Sewell told both the coconspirator and the facilitator that he would kill the coconspirator if he turned out to be a spy.
The coconspirator made contact with the facilitator and made arrangements with the facilitator to travel to Pakistan to join LeT.
The FBI and its Joint Terrorism Task Force members; including the Arlington Police Department, the Fort Worth Police Department, the Tarrant County Sheriff’s Office, the Naval Criminal Investigation Service, the Department of Homeland Security, and the Texas Department of Public Safety; investigated the case.
Tax Preparer Admits to Filing False Tax ReturnsRead the Press Release
St. Louis, MO – Joseph Thomas, 62, of St. Louis, pleaded guilty to two counts of filing false tax returns. Thomas appeared today before U.S. District Judge Stephen Limbaugh, Jr. who accepted his plea and set his sentencing date for May 9, 2019.
In his plea, Thomas admitted that, on April 22, 2012, he filed a false 2011 United States Form 1040 which understated his income by more than $25,000 and his tax due and owing by more than $10,000. Thomas further admitted that, on May 1, 2013, he filed a false 2012 United States Form 1040 which understated his income by more than $125,000 and his tax due and owing by more than $40,000.
“Taxpayers thinking about cheating on their tax returns should stop and look at the consequences of taking the next step,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. “Those consequences can include going to prison, being branded a convicted felon, and paying back all the taxes owed plus steep penalties and interest.”
Thomas faces up to three years’ imprisonment per count, a fine of up to $250,000 per count or both imprisonment and a fine. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provides recommended sentencing ranges.
The case was investigated by the IRS – Criminal Investigations Office. Assistant United States Attorney Kyle T. Bateman is handling the case for the U.S. Attorney’s Office.
Sumter Women Convicted of Healthcare Fraud for Over-Charging Government by Millions of DollarsRead the Press Release
Columbia, SC – United States Attorney Sherri A. Lydon announced today that Angela Breitweiser Keith, age 53, and Ann Davis Eldridge, age 58, both of Sumter, South Carolina, pleaded guilty in federal court to one count of false statements to defraud Medicaid.
Evidence presented to the court showed that Keith and Eldridge were executives of the South Carolina Early Autism Project (SCEAP). SCEAP provided behavioral health and education solutions for children and young adults, particularly those diagnosed with autism. SCEAP began providing Applied Behavior Analysis (ABA) services for children with autism in 2003, becoming the number one biller in the country for ABA services by 2015. SCEAP overcharged Medicaid and TRICARE (military-affiliated insurance) millions of dollars by inflating billing records and charging the government for services it did not provide to clients.
SCEAP employees reported to the government that they were pressured to exaggerate the amount of time they spent delivering services to the clients. Company emails indicated that SCEAP encouraged employees to unlawfully bill for time while waiting in driveways, travelling to and from servicing the clients, and even while sitting in restaurants. The employees also indicated that they had required billing goals they had to meet to qualify for job benefits and/or bonuses. These bonuses included gift cards and company-expensed vacations.
Ann Eldridge was a co-founder of SCEAP and Angela Breitweiser Keith worked at the SCEAP since its inception. In December 2012, Eldridge and her partner sold SCEAP to a company called Chancelight for over $18 million. Eldridge and Keith remained with the company, continuing in leadership roles in South Carolina. Chancelight engaged Eldridge to promote the SCEAP system to other Chancelight franchises in the Southeast, and promoted Keith to Senior Vice President of Data Reporting and Analysis.
In 2018, SCEAP/Chancelight repaid the government nearly $9 million for overbilling Medicaid and TRICARE in a civil settlement. Sentencing in the case has not yet been scheduled, but in a plea agreement filed with the court, both Keith and Eldridge have agreed to serve a 12-month federal prison sentence for their role in the fraud.
“We are proud of the excellent work of all the agencies involved,” said U.S. Attorney Lydon. “We take seriously our mission to protect those that are the most vulnerable to this kind of fraud and abuse. These prosecutions, combined with our civil recovery, should serve as a warning to those who seek to unlawfully enrich themselves by stealing from Medicaid or TRICARE and denying services to those with dire needs and those who have bravely served our nation.“
"These guilty pleas are the product of a thorough investigation and demonstrate the commitment of the Defense Criminal Investigative Service (DCIS) and our law enforcement partners to hold dishonest medical service providers accountable when they submit false bills and divert taxpayer funds," said Special Agent in Charge Robert E. Craig, Jr., DCIS Mid-Atlantic Field Office. "DCIS will continue to protect the integrity of the Department of Defense by rooting out fraud, waste, and abuse that negatively impacts critical programs such as TRICARE."
South Carolina Attorney General Alan Wilson stated, “The positive outcome of this case is an example of how valuable it can be for multiple agencies to pool their talents and resources in order to combat fraud. These individuals pleading guilty took advantage of taxpayers’ dollars at the expense of our Medicaid population, some of our most vulnerable. The people of South Carolina deserve better than this, and these convictions show that this behavior will not be tolerated in our state.”
The investigation was conducted by members of the Department of Health and Human Services, Office of Inspector General; the Department of Defense, Office of Inspector General; and the South Carolina Attorney General’s Office. The case is being prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
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Suboxone Clinic Owner Sentenced to More than a Year in Prison for Unlawfully Dispensing Prescription Drugs and Defrauding HighmarkRead the Press Release
PITTSBURGH, PA. - A suburban Pittsburgh resident has been sentenced in federal court to 15 months’ imprisonment followed by three years of supervised release and ordered to pay $4,845.24 in restitution on her conviction of unlawfully distributing controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Terri C. Brown, 53, of Morrow Road, Pittsburgh, PA 15241.
According to information presented to the court, Brown owned and operated Cherry Way, a Suboxone clinic, located in Bridgeville, PA. Her co-defendant,Mark Foster was the medical director at Cherry Way. Brown and Foster conspired together to create and submit unlawful prescriptions for Suboxone, Adderall and Percocet, and then unlawfully dispensed those controlled substances to Brown and to other persons. Brown also plead guilty to a charge of health care fraud for allegedly submitting fraudulent claims to Highmark through Cherry Way, for payments to cover the costs of the unlawfully prescribed Suboxone, Adderall and Percocet.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
The investigation leading to the filing of charges in these cases was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic. This unit has investigated and prosecuted more corrupt health care professionals than any other U.S. Attorney’s Office in the country.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
Statement from U.S. Attorney Trent Shores on Justice Department’s Success in Religious Liberty CasesRead the Press Release
U.S. Attorney Trent Shores shared his response today after the Department of Justice announced that two federal courts had handed down decisions protecting religious liberty, agreeing with the positions taken by the Department of Justice.
U.S. Attorney Shores stated, "I am proud to see the Department of Justice defending religious liberty in courts across America. Under the Religious Land Use and Institutionalized Persons Act, the Justice Department can file a civil action in court when religious groups are discriminated against in zoning laws. As the decisions in these cases show, this law is an important tool to protect the rights of religious groups. Freedom of religion is and always has been a core American principle. Whether prosecuting persons for threats against houses of worship or defending people of faith from unjust discrimination, my office stands ready to defend religious liberty."
See Department of Justice release here.
St. Roberts Man Sentenced for Stealing Timber from the Mark Twain National ParkRead the Press Release
St. Louis – Richard McKinnon, 38, of St. Roberts, Missouri, was sentenced to 18 months in prison on Thursday for theft of Government property. He appeared in federal court before U.S. District Judge Stephen Limbaugh.
According to court documents, between September of 2016 and December of 2016, McKinnon and his co-defendants, Dale Connour and Delmar Connour felled walnut trees located on federal land, from the Mark Twain National Forest in Laclede County and Pulaski County. They removed at least 39 trees without authorization from the Mark Twain National Forest and then sold the stolen timber at a walnut sawmill located in Texas County, Missouri. McKinnon and the Connours damaged at least 21 trees as a result of driving prohibited vehicles onto restricted areas of the Forest in order to cut down and remove the walnut trees. The total estimated value of the National Forest timber and the cost of rehabilitation to Nation Forest land was $35,862.50.
The case was investigated by the Department of Agriculture Forest Service. Assistant U.S. Attorney Gwen Carroll is handling the case for the U.S. Attorney’s Office.
Springville Bank Robber Sentenced to Five Years in Federal PrisonRead the Press Release
A Monticello man who robbed a bank in Springville last year was sentenced today to five years in federal prison. Joseph Jay Kripner, age 46, received the prison term after an August 21, 2018 guilty plea to one count of bank robbery.
On June 1, 2018, which was Kripner’s birthday, Kripner robbed the Security State Bank in Springville, Iowa. During the robbery, he displayed what appeared to be a gun to a teller and told her not to make him point the gun at her. The teller provided Kripner with $3,988 in cash in a plastic shopping bag and he then fled the scene. With the help of the “Crimestoppers” tip line, law enforcement officers later compared photographs of Kripner on his Facebook page and prior booking photographs with surveillance camera footage from the bank. The booking photographs showed that Kripner has a distinctive tattoo on the right side of his neck, depicting red lips with the word “Always” written above the lips and the word “Loved” written below the lips.
Kripner fled to Colorado after robbing the bank. On June 18, 2018, National Park Service Rangers arrested Kripner in the Rocky Mountain National Park. Kripner was found near the same car he used in the bank robbery, and the Park Rangers discovered $589.36 in cash, marijuana, live ammunition, and the pellet gun Kripner used in the robbery.
Kripner was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Kripner was sentenced to 60 months’ imprisonment. He was ordered to make $3,988 in restitution to the bank. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Kripner 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 Tim Vavricek and was investigated by the Linn County Sheriff’s Office, the Federal Bureau of Investigation, and the Rocky Mountain National Park Rangers.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 18-CR-67-LTS (N.D. Iowa), 18-MJ-204-CJW (N.D. Iowa) and 18-MJ-1111-NYW (D. Colo.).
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Southern District of Georgia continues crackdown on healthcare fraudRead the Press Release
AUGUSTA, Ga: A Martinez man has been sentenced to federal prison and ordered to pay nearly $1.5 million in restitution for defrauding government healthcare and disability programs.
Jonathan Duane Austin, 32, of Martinez, Ga., was sentenced to 30 months in federal prison and ordered to pay $1,473,377.51 in restitution by U.S. District Court Chief Judge J. Randal Hall, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
At the completion of Austin’s sentence, he will be subject to an additional term of supervised release. There is no parole in the federal system.
According to court documents in the case, Austin admitted to defrauding Medicare and Tricare for nearly three years by submitting false claims for prescription reimbursements totaling $1,450,000, and to defrauding the Social Security Administration by providing forged documents to falsely claim disability status.
The Austin case represents one of the largest beneficiary-created fraud schemes ever prosecuted in the Southern District.
These Austin case was investigated by the Defense Criminal Investigative Service (DCIS), the Department of Health and Human Services (HHS), and the Social Security Administration.
The Health Care Fraud Task Force aggressively prosecutes health care fraud and abuse. The Task Force’s effort is reflected in other recent plea agreements and sentences, including:
Maryanne Hudson, 49, of Millen, Ga., was sentenced to 13 months in federal prison by U.S. District Court R. Stan Baker for fraudulently billing Medicare for durable medical equipment that a physician had not actually ordered as reasonable and necessary; and,
Paula Padgett, 49, of Brunswick, Ga., was sentenced to probation for submitting false requests for compensation to the United States Department of Labor, Office of Workers’ Compensation Programs, by U.S. District Court Lisa Godbey Wood.
These cases were investigated by HHS, the Federal Bureau of Investigation (FBI), the Department of Labor (DOL), and the U.S. Attorney’s Office.
“These types of fraud erode faith in the health care system, and we will not tolerate it,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Individuals who engage in schemes to steal from taxpayers hurt those with real health problems and the systems in place to address those needs.”
“The Austin sentencing demonstrates the commitment of DCIS to protect the integrity of the DoD health care program (TRICARE) from fraud and abuse,” said Special Agent in Charge John F. Khin, DCIS Southeast Field Office. “DCIS investigations ensure taxpayer money is properly used to support our warfighter, retirees and their family members.”
“The Social Security OIG will continue to maintain our strong partnerships with other federal, state, and local agencies as we combat fraud. Our responsibility in protecting taxpayers’ dollars doesn’t end with Social Security benefits only, “said Gail S. Ennis, Inspector General of the Social Security Administration. “We will continue to work closely with our law enforcement partners to detect and prevent benefit fraud across the country.”
“This sentencing reaffirms our commitment to protecting patients from the dangers of prescription drug fraud,” said Special Agent in Charge Derrick L. Jackson, of the HHS Office of Inspector General. "Our watchdog agency will continue to work closely with our law enforcement partners to root out waste, fraud and abuse."
“When Hudson fraudulently billed Medicare she not only cheated taxpayers, she also hurt those who rely on the government program for their healthcare needs,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI makes it a top priority to protect government programs like Medicare to ensure that only those who need assistance get it.”
“Paula Padgett engaged in a scheme to defraud the U.S. Department of Labor’s (DOL) Federal Employees’ Compensation Act program by submitting fraudulent claims to the Office of Workers’ Compensation Programs (OWCP) for the reimbursement of nonexistent travel expenses for medical treatment. We will continue to work with OWCP and our law enforcement partners to protect the integrity of DOL’s benefit programs,” said Rafiq Ahmad, Special Agent in Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General.
Assistant United States Attorney J. Thomas Clarkson prosecuted these cases for the United States.
Shreveport man found guilty for role in check fraud scheme that resulted in nearly $200,000 stolenRead the Press Release
SHREVEPORT, La. – A federal jury found Carlos A. Spann guilty Thursday night for his role in a fraudulent check scheme resulting in the theft of nearly $200,000, U.S. Attorney David C. Joseph announced. The jury deliberated for approximately one hour before finding Spann guilty of one count of conspiracy to commit bank and wire fraud and two counts of wire fraud.
Evidence admitted at trial showed that Spann, 41, Phelix K. Williams, 28, and Anthony E. Johnson, 23, all of Shreveport, conspired to cash counterfeit checks using fraudulent identities at banks and retail establishments throughout Louisiana. During the conspiracy, the co-defendants negotiated more than 100 counterfeit checks resulting in nearly $200,000 in illegally obtained proceeds.
United States District Judge S. Maurice Hicks Jr. presided over the trial that started Monday and ended Thursday. Hicks set Spann’s sentencing for May 23, 2019.
Johnson pleaded guilty on January 17, 2019 to one count of conspiracy and two counts of bank fraud. Johnson is scheduled to be sentenced May 1, 2019. Williams pleaded guilty Monday to one count of conspiracy, 12 counts of bank fraud and two counts of wire fraud. Williams is scheduled to be sentenced May 30, 2019. The defendants face up to 30 years in prison, five years supervised release and a $1 million fine.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Tiffany Fields and First Assistant U.S. Attorney Alexander C. Van Hook prosecuted the case.
Scranton Man Guilty of Unlawfully Importing Synthetic Cannabinoids from ChinaRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that John Verkitus, age 56, of Scranton, Pennsylvania, pleaded guilty before U.S. District Court Judge Malachy E. Mannion to unlawfully importing synthetic cannabinoids from China between November 2015 and September 2016.
According to United States Attorney David J. Freed, Verkitus admitted to ordering via the internet and receiving parcels containing synthetic cannabinoids on a monthly basis. In September 2016, postal inspectors intercepted two parcels from Hong Kong and Guangdong, China, intended for Verkitus, and a subsequent court-authorized search revealed that the parcels contained synthetic cannabinoids. The parcels were labeled as “plastic accessories” and “car tools kits” to disguise their true contents.
Judge Mannion ordered a presentence investigation to be completed. Sentencing will be scheduled at a later date.
The case was investigated by the Drug Enforcement Administration, the United States Postal Service, and Scranton Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The maximum penalty under federal law for this offense is 20 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Scranton Funeral Home Director Pleads Guilty to Tax EvasionRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Al T. Hughes, age 60, of Scranton, Pennsylvania, pleaded guilty on February 7, 2019 before United States District Court Judge James M. Munley to tax evasion.
According to United States Attorney, David J. Freed, Hughes admitted to diverting approximately $892,000 in corporate receipts to his personal benefit, and failed to report the diverted receipts as income on his federal tax returns. The resulting tax loss to the United States is approximately $231,000. Hughes also admitted that he began diverting corporate receipts in 2009 and continued through 2014, and that he cashed hundreds of customer checks, intended for payment of funeral home services, at various financial institutions, including a check cashing service in Scranton. Hughes diverted corporate receipts from four area funeral homes, including the Thomas J. Hughes Funeral Home, the Eagan-Hughes Funeral Home, the McGoff-Hughes Funeral Home, and the Davies & Jones Funeral Chapel.
The investigation was conducted by the Criminal Investigation Division of the Internal Revenue Service – Scranton Office. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under federal law for the crime of tax evasion is 5 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Sacramento Man Sentenced to 12 Years in Prison for Cocaine Trafficking & Gun PossessionRead the Press Release
SACRAMENTO, Calif. — Benjamin Macias, 40, of Sacramento, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 12 years in prison for conspiring to distribute cocaine, distributing cocaine, possessing cocaine with the intent to distribute it, and being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, in 2014 and 2015, Macias supplied Sergio Ambriz, 29, of Sacramento, with cocaine. On four occasions, Ambriz sold this cocaine to an undercover agent in Sacramento and El Dorado Counties. Agents planned to arrest Macias and Ambriz during a fifth transaction on June 9, 2015. Shortly before they could do so, Macias sped away from the scene at about 90 miles per hour. Helicopter video showed that, in his attempt to escape, he drove through an intersection, appeared to fail to stop at a red light, and drove erratically as he passed other cars on westbound Highway 50 near the El Dorado Hills Town Center.
After they apprehended him in Gold Run, agents searched Macias’s car. In the glove compartment, they found a Ruger 9 mm pistol loaded with hollow-point bullets; they also found more than one pound of cocaine in the trunk. On the same day, agents searched Macias’s Sacramento home and found ammunition, a 35-round magazine, and more cocaine.
Macias has a record of other criminal convictions stretching back to 1996. He was on pretrial release for California state charges relating to firearm and marijuana possession when he committed the crimes of which he was convicted in this case.
Ambriz previously pleaded guilty to using a cellphone to facilitate a drug trafficking offense and was sentenced on November 4, 2016, to four years in prison.
This case is the product of an investigation by the Drug Enforcement Administration, the El Dorado County Sheriff’s Department, the El Dorado County District Attorney’s Office, the California Highway Patrol, the California Department of Corrections and Rehabilitation, and the Sacramento County Sheriff’s Department. Assistant U.S. Attorneys Paul A. Hemesath and Amanda Beck prosecuted the case.
Rockford Man Arrested for Aiming a Laser Pointer at an AircraftRead the Press Release
ROCKFORD — A Rockford man was arrested today on a charge of aiming the beam of a laser pointer at an aircraft and at the flight path of an aircraft on Dec. 6, 2018, in Rockford.
BRENTON WELLS, 45, was indicted on the charge by a federal grand jury on Feb. 5, 2019. Wells will appear for arraignment today at 3:30 p.m. in federal court in Rockford, before U.S. Magistrate Judge Iain D. Johnston.
The charge carries a maximum potential penalty of up to five years in prison and a fine of up to $250,000. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The arrest was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Dan O’Shea, Rockford Chief of Police.
The public is reminded that an indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Ridgeland Man Pleads Guilty to Federal Narcotics ChargesRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Demetrius Dwayne Swinton, a/k/a “Million Dolla Meat,” age 31, of Ridgeland, South Carolina, has entered a guilty plea in federal court in Charleston to conspiracy to possess with intent to distribute and to distribute 5 kilograms or more of cocaine. United States District Judge Richard M. Gergel of Charleston accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Swinton was the last of thirteen defendants to plead guilty to their involvement in the drug conspiracy. Those who previously pled guilty to their involvement include Liz Ashante Christopher, Christopher Johnson, Travis Wiggins, Derrick Edwards, Johnita Anderson, David Grober, Boston Brown, Samuel Jones, Ernest Tyrone Fields, Devin Swinton, Ryan Walters, and Terrance Wallace. Defendants Demetrius Swinton, Christopher, Wiggins, Edwards, Anderson, Grober, Jones, Fields, and Walters each face up to life imprisonment in federal custody. Demetrius Swinton also agreed to forfeit $500,000, two vehicles, and several pieces of jewelry. Defendants Devin Swinton, Johnson, and Brown each face up to forty years in federal custody for their involvement in the conspiracy, while Wallace faces up to twenty years in federal custody for his involvement. Defendants Wiggins and Edwards both also pled guilty to possession of firearms in furtherance of drug trafficking, which carries a minimum of five years in federal custody to be served consecutive to any other sentence received.
Evidence presented to the court established that Demetrius Swinton was the leader of a cocaine trafficking organization that was responsible for bringing a large volume of cocaine into South Carolina, primarily into Beaufort and Jasper counties. During the course of the investigation, agents established that Swinton was receiving multiple kilograms of cocaine at a time from a source of supply in Atlanta and that he used a number of associates to assist in both the distribution of drugs and the collection of drug proceeds. During the course of the investigation, agents seized over 47 kilograms of cocaine, 782 grams of crack cocaine, 6 kilograms of marijuana, 97 grams of heroin, 10 firearms, 5 vehicles, over $50,000 worth of jewelry, and over $68,000 cash.
United States Attorney Lydon stated, “With these convictions, we are able to bring a long-overdue sense of justice to the communities that have been so greatly affected by drug trafficking and violence. We truly appreciate the efforts of our federal, state and local law enforcement agencies in working together to hold so many people accountable for such serious crimes.”
"Demetrius Swinton’s criminal activity had been an ongoing problem for the 14th Circuit," added Fourteenth Circuit Solicitor Duffie Stone. "It's fortunate that we've had this tremendous partnership with the U.S. Attorney's Office in place for a number of years now. It has been invaluable in our efforts to get dangerous people like Swinton off the streets."
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, "The Demetrius Swinton violent drug trafficking organization plagued communities in South Carolina for far too long. This investigation clearly validates the correlation between drug trafficking and violent crime. The guilty pleas of Swinton and his co-defendants underscore the seamless law enforcement collaboration between DEA, the Beaufort, Hampton, and Jasper County Sheriff's Offices, the Fourteenth Circuit Solicitor’s Office and the subsequent prosecution by the U.S. Attorney's Office."
“Drugs wreak havoc on communities, and this case is no different,” said John Eisert, Acting Special Agent in Charge of U.S. Immigration and Custom’s Enforcement’s Homeland Security Investigations Charlotte. “With drugs comes violence, and I am happy to say several South Carolina cities are now safer due to the investigative efforts of HSI and its partners.”
The case was investigated by agents of the Drug Enforcement Administration, Homeland Security Investigations, Beaufort County Sheriff’s Office, Hampton County Sheriff’s Office, Jasper County Sheriff’s Office, Charleston County Sheriff’s Office, Berkeley County Sheriff’s Office, City of Charleston Police Department, Summerville Police Department, North Charleston Police Department, Mount Pleasant Police Department, South Carolina Highway Patrol, and the South Carolina National Guard. Assistant United States Attorney Nick Bianchi of the Charleston Office and Special Assistant United States Attorney Carra Henderson of the Fourteenth Circuit Solicitor’s Office are prosecuting the case.
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Raleigh Drug Dealers Receive More Than 15 Years Each for Their Roles in a Drug Trafficking OrganizationRead the Press Release
NEW BERN — United States Attorney Robert J. Higdon, Jr. announces that United States District Judge Louise Flanagan sentenced William ISAAC DANIELS, 38, of Wake County to 211 months’ imprisonment, followed by 5 years of supervised release and BOB BIONGO, 31, of Wake County to 180 months’ imprisonment, followed by 10 years of supervised release
On August 24, 2018, DANIELS plead guilty to conspiracy to distribute and possess with the intent to distribute 28 grams or more of cocaine base (crack) and distribution of a quantity of cocaine.
On August 16, 2018, BIONGO plead guilty to conspiracy to distribute with intent to distribute two hundred eighty (280) grams or more of a mixture and substance containing a detectable amount of cocaine base, 3-counts of distribute and possess with intent to distribute a quantity of detectable amount of cocaine base, aiding and abetting, and to possess with intent to distribute two hundred eighty (280) grams or more of a mixture and substance containing a detectable amount of cocaine base (crack).
Between May and June 2017, the Raleigh Career Criminal Unit and the Federal Bureau of Investigation conducted three controlled purchases from BIONGO. The first purchase occurred within a 1/10 of a mile of Mary Phillips High School in Raleigh.
Between January and February 2017, the Raleigh Career Criminal Unit and the Federal Bureau of Investigation conducted two controlled purchases from DANIELS. One of the deals occurred in the bathroom of a local Raleigh restaurant in the middle of the day for approximately an ounce of crack cocaine.
On June 15, 2017, law enforcement served a search warrant on BIONGO’S residence in Raleigh. Law enforcement found more than 1 kilogram of crack cocaine, more than $7,000 and a cocaine press. BIONGO was arrested following a short foot chase.
On January 23, 2018, DANIELS was arrested at a residence in Franklin County. DANIELS was able to destroy a quantity of cocaine base before the agents were able to arrest him.
DANIELS was involved in distributing approximately 900 grams of cocaine base (crack) between November 2016 and the time of his arrest. BIONGO was involved in distributing more than a kilogram of crack cocaine. BIONGO was a validated gang member and had a North Carolina State prior conviction for possession with intent to sell and deliver a cocaine as a habitual felon.
This case was brought using the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Federal Bureau of Investigation Safe Streets Task Force and the Raleigh Police Department Career Criminal Unit. Assistant United States Attorney Timothy Severo prosecuted the case.
Priority target of Savannah law enforcement pleads guilty to felony firearms possessionRead the Press Release
SAVANNAH, GA: A high priority target of the Savannah Police Department has pled guilty to a federal firearms possession charge and now awaits sentencing.
Frenchy Gamil Hilliard, 32, of Savannah, Ga., pled guilty to being a Felon in Possession of a Firearm, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a potential sentence of up to 10 years in prison, and there is no parole in the federal prison system.
According to information provided in court filings and in open court, a detective from the Savannah Police Department Special Investigations Unit saw Hilliard, a known convicted felon and convicted drug dealer, with a handgun with an extended magazine. The detective saw Hilliard place the gun in his pocket, get into a vehicle and drive away when officers ordered him out of the car. After crashing the vehicle, Hilliard attempted to flee on foot and was captured.
Officers searching the area found the pistol, a black Glock 43 .40 caliber with extended magazine with one of its serial numbers obliterated. The investigation determined the pistol had been stolen, and evidence found on Hilliard’s phone showed him photographed brandishing the weapon more than a year before the arrest. Tests also confirmed Hilliard’s DNA was on the stolen pistol and magazine.
The case was investigated by the Savannah Police Department Special Investigations Unit, the federal bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Attorney’s Office for the Southern District of Georgia.
“Law-abiding residents of our communities understandably are frustrated when they see armed criminals repeatedly violating the law and returning to their neighborhoods,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Through diligent enforcement of federal statutes that can take these criminals off the street, we are determined to restore safety and security to our communities.”
“ATF considers Savannah Police Department a critical partner in its long-term mission of removing violent criminals from our communities,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the bureau of Alcohol, Tobacco, Firearms and Explosives.
“Activity like this will not be tolerated in Savannah,” said Savannah Police Chief Roy Minter. “We are committed to removing illegal firearms and those in possession of these weapons from this city.”
The case is being prosecuted by Assistant United States Attorneys E. Greg Gilluly Jr. and Frank Pennington.
Prince George’s County Felon Sentenced to 10 Years in Federal Prison for Distribution of Fentanyl and other Opioids and for Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Tyrell Rashad Cauthern, age 30, of Fort Washington, Maryland, to 10 years in federal prison, followed by four years of supervised release, for distribution of fentanyl, crack cocaine, and other drugs, and for possession of a firearm in furtherance of drug trafficking. Judge Grimm also found that Cauthern committed those crimes while on supervised release for a 2011 federal drug trafficking conviction, revoked Cauthern’s supervised release, and sentenced him to 12 months in prison to be served concurrent to the 10 year sentence. The sentences were imposed on February 6, 2018.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
U.S. Attorney Robert K. Hur stated, “We are determined to reduce the number of drug-related deaths in Maryland, especially opioid overdose deaths. We’re particularly focusing our attention on those who sell fentanyl, the drug that is killing the most of our citizens, and drug dealers who use guns. Drug traffickers are on notice that guns and drugs - especially fentanyl - increase their odds of federal prosecution, resulting in long federal sentences without the possibility of parole.”
According to his guilty plea, on October 17, 2017, Prince George’s County Police officers executed a search warrant at Cauthern’s residence and his car. Officers recovered a 9 mm handgun loaded with six rounds of ammunition, $11,368 in cash, crack cocaine, fentanyl, two of Cauthern’s cell phones, and drug paraphernalia. The drugs were concealed in three containers with false bottoms – an Ajax bottle, Pepsi bottle and Scotch Guard can. In total, officers seized 75 bags containing 175 grams of fentanyl and 14 bags containing 55 grams of crack cocaine. During the search, officers also located Cauthern’s six-year-old daughter in the residence.
In one of Cauthern’s phones, officers found text messages in which Cauthern used coded language to facilitate drug transactions. Cauthern was also prohibited from possessing a firearm or ammunition as a result of his previous felony conviction. Cauthern will forfeit the cash and gun seized during the search on October 17, 2017.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Gregory D. Bernstein, who prosecuted the case.
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Pittsburgh Man Sentenced to Prison on Tax Fraud and Social Security Fraud ChargesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 9 months’ imprisonment followed by 2 years of supervised release on his conviction for violating federal tax and social security fraud laws, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Robert Alan Seth, Sr., 58.
According to information presented to the court, Seth filed a false U.S. individual income tax return for the 2013 tax year by failing to report income from his general contracting business, RAS & Sons. As part of his guilty plea, Seth accepted responsibility for filing a false individual tax return for the 2012 tax year. Seth also accepted responsibility for failing to file personal income tax returns for 2008 through 2011 and 2013, as well as corporate income tax returns for 2008 through 2014 for RAS & Sons. As part of his sentence, Seth was ordered to pay restitution for back taxes of $173,390.00, plus interest, to the Internal Revenue Service.
Additionally, between January 2009 and July 2017, Seth fraudulently collected Social Security Disability Insurance benefits for himself and his minor child totaling $248,145.90, by failing to report his employment activity as the owner and operator of RAS & Sons general contracting business. As part of his sentence, Seth was ordered to pay restitution of $248,145.90 to the Social Security Administration.
"Robert Seth committed an elaborate double fraud on the government," said U.S. Attorney Brady. "By stealing hundreds of thousands of dollars from the Social Security Administration and failing to report significant income from a variety of businesses, Seth was in effect stealing from the hard-working, honest taxpayers of western Pennsylvania. My office is committed to prosecuting criminals like Seth to the fullest extent of the law."
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
United States Attorney Brady commended the Internal Revenue Service – Criminal Investigation and the Social Security Administration – Office of Inspector General for the investigation leading to the successful prosecution of Seth.
Philadelphia Man Pleads Guilty to Methamphetamine Trafficking and Illegal Gun PossessionRead the Press Release
Jackson, Miss. – Dijon Jamese Seales a/k/a “DJ,” 28, of Philadelphia, pled guilty today before U.S. Chief District Judge Daniel P. Jordan, III., to possession with intent to distribute 5 grams or more of methamphetamine and possession of firearms in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans.
On January 22, 2018, members of the U.S. Marshal’s Gulf Coast Regional Fugitive Task Force went to arrest Seales pursuant to an arrest warrant issued out of the Northern District of Texas for violating pretrial release conditions in an unrelated case. While executing the warrant, task force members found 16.9 grams of methamphetamine on Seales’ person which the defendant intended to distribute. Additionally, in furtherance of his drug trafficking offense, Seales was found to be in possession of a Glock 43 pistol and a Ruger AR-556 assault-type rifle with an assortment of gun accessories, including a bump stock.
“Methamphetamine has devastated countless communities due to the dramatic health and public safety consequences that typically accompany its introduction into an area,” said Special Agent in Charge of Homeland Security Investigations New Orleans Jere T. Miles. “Today’s guilty plea stems from an extensive HSI effort with its federal, state and local partners to dismantle a drug trafficking organization that decimated parts of Mississippi and Alabama with methamphetamine smuggled into the U.S. from Mexico. This operation is a testament to the seamless partnership between HSI, the Mississippi Bureau of Narcotics and the Drug Enforcement Administration, and we are thankful for their assistance as well as the U.S. Attorneys’ to improve the lives of law-abiding residents throughout Mississippi and Alabama.”
Seales was charged in a three count indictment that was filed on March 7, 2018. He will be sentenced by Judge Jordan on May 10, 2019, at 9:00am and faces a maximum penalty of life in prison and up to a $5,000,000 fine.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This OCDETF case is a result of a joint investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration and the Mississippi Bureau of Narcotics. Assisting agencies include the United States Marshal’s Service, the Gulf Coast Regional Fugitive Task Force, Philadelphia Police Department, Neshoba County Sheriff’s Department, Neshoba County District Attorney’s Office, Scott County Sheriff’s Office, Flowood Police Department, Rankin County Sheriff’s Department, Hinds County Sheriff’s Department, Carthage Police Department, Union Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisville Police Department, Mississippi Highway Patrol, and United States Attorney=s Office Southern District of Mississippi. Assistant U.S. Attorneys Erin Chalk and Drew Eichner are prosecuting the case.
Pass Christian Man Sentenced to over 24 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
Gulfport, Miss. – Randall Galloway, 31, of Pass Christian, Mississippi, was sentenced yesterday by U.S. District Judge Sul Ozerden to serve 294 months in federal prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Assistant Special Agent in Charge Derryle Smith with the Drug Enforcement Administration (DEA). Galloway was also ordered to pay a $10,000 fine.
An investigation by the DEA revealed that from 2014 through 2015, Galloway received approximately 2.3 kilograms of methamphetamine via FedEx. Galloway was responsible for distributing the methamphetamine in the Gulfport area. On two occasions, DEA agents utilized a confidential informant to purchase methamphetamine from Galloway. On October 19, 2018, Galloway pled guilty to possession with intent to distribute methamphetamine.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Shundral H. Cole.
Oxford County Man Sentenced to Five Years for ArsonRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Daniel Thompson, a/k/a “Daniel Walker,” 21, formerly of South Paris, Maine, was sentenced today in U.S. District Court by Judge Nancy Torresen to five years in prison and three years of supervised release for maliciously damaging property used in interstate commerce by fire. He was also ordered to pay over $184,000 in restitution. Thompson pleaded guilty on August 10, 2018.
According to court records, on June 5, 2017, the defendant broke into and, using gasoline, set a fire inside a building owned by the Dead River Company, in South Paris, that was used to store files and equipment. Dead River is a commercial petroleum supplier engaged in interstate commerce. It took several hours for firefighters to contain the blaze and the building was destroyed.
The investigation was conducted by the Maine State Fire Marshal’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Owner of Janitorial Supply Company Admits Defrauding Customer, Failing to Pay TaxesRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man who owned a janitorial supply company admitted today to submitting fraudulent bills to a customer and failing to pay taxes on the illicit proceeds of his scheme, U.S. Attorney Craig Carpenito announced.
Mitchell Bleicher, 52, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count each of wire fraud, money laundering, and income tax evasion.
According to documents filed in this case and statements made in court:
Bleicher was the owner and operator of Allied Materials Inc. (Allied), a janitorial supply company in Berlin, New Jersey. Allied sold janitorial and cleaning supplies, office and break room supplies, food service items, safety equipment, and business printing and imprinted items.
Bleicher admitted that between 2009 and April 2018, he submitted invoices to Company 1, headquartered in Cherry Hill, New Jersey, that falsely listed products that Allied purportedly delivered to Company 1, when, in fact, Allied had not delivered those products. Allied’s fraudulent invoices also inflated the number of products that were actually delivered. As part of his scheme, and to ensure that his fraudulent invoices were accepted, Bleicher admitted that he paid a contractor working in the facilities department of Company 1 who was responsible for the janitorial supplies. Once that contractor left, Bleicher continued his fraudulent activity with the contractor’s replacement and rewarded him by buying him expensive dinners, taking him to professional sports games like the Philadelphia 76ers, and providing him with expensive wines. Later, Bleicher recruited an employee of Company 1 and gave her the fraudulent invoices to submit for payment.
Bleicher admitted that he used the money he got from the scheme – $1,917,381 – on numerous personal expenditures, such as Rolex watches, two Rolls Royce automobiles, two Subaru automobiles, motorcycles, home renovations and college tuition for his children.
Bleicher acknowledged that he failed to pay taxes on the money he received through fraud. Although he filed income tax returns with the IRS for 2011 through 2017, Bleicher did not report the money that he fraudulently obtained from Company 1. By not reporting that additional taxable income, Bleicher admitted that he defrauded the IRS of $578,902 in income tax revenue.
The count of wire fraud to which Bleicher pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of money laundering carries a maximum penalty of 10 years in prison and a fine of $250,000. The count of income tax evasion carries a maximum potential penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for May 17, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Michael T. Harpster in Philadelphia; and special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Robert E. Welsh Esq., Philadelphia
Oklahoma City Man Sentenced for CyberstalkingRead the Press Release
United States Attorney Joe Kelly announced that Kevin W. McRae, age 48, was sentenced in federal court today in Omaha, Nebraska, for one count of cyberstalking. The Honorable Robert F. Rossiter, Jr. sentenced McRae to 5 months in prison, ordered him to pay $4,590 in expenses to the court, and three years of supervised release after he is released from prison.
McRae, as a member of the U.S. Air Force, had an extra-marital relationship with another member of the Air Force. When the relationship ended in 2015, for a period of approximately 10 months, McRae stalked the woman on the internet by posting sexually explicit photos of her on several websites. He retired from the Air Force prior to being prosecuted for this offense.
The case was investigated by the Federal Bureau of Investigation.
Ohio County residents admit to their roles in cocaine and heroin distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Two Wheeling residents have admitted to their roles in a cocaine and heroin distribution operation that spanned two states, United States Attorney Bill Powell announced.
Michael J. Kennen, age 35, and Amanda R. Kennen, age 35, each pled guilty to one count of “Aiding and Abetting the Distribution of Cocaine Base within 1,000 feet of a Protected Location.” They admitted to selling cocaine near Wilson Playground in June 2018 in Ohio County.
Both are facing no less than one year and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The investigation was led by the Ohio County Drug & Violent Crimes Task Force, a HIDTA-funded initiative. The task force is comprised of the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department. Those assisting in the arrests are the United States Marshal Service; Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Martins Ferry, Ohio Police Department; and the Columbus, Ohio Police Department.
U.S. Magistrate Judge James P. Mazzone presided.
North Texas Man Charged by Criminal Complaint with Conspiring to Provide Material Support to a Foreign Terrorist OrganizationRead the Press Release
A north Texas man was charged today with conspiring to provide material support to a foreign terrorist organization, announced Assistant Attorney General for National Security John C. Demers and U.S. Attorney Erin Nealy Cox.
Michael Kyle Sewell, 18, was charged Friday morning by criminal complaint in Fort Worth, Texas with conspiring to provide material support and resources to Lashkar-e-Taiba, a Pakistani-based foreign terrorist organization.
As set forth in the complaint, Sewell recruited an individual, identified in the complaint as coconspirator 1, to join Lashkar-e-Taiba (LeT), a designated foreign terrorist organization. Sewell met the coconspirator online and encouraged him to join LeT.
Sewell provided the coconspirator with contact information for an individual he believed could facilitate the coconspirator’s travel to join the organization. Unbeknownst to Sewel and the coconspirator, the facilitator was an undercover FBI agent.
Sewell coached the coconspirator about what to say to convince the facilitator that he was sincere in his desire to fight for LeT. Sewell also contacted the facilitator to vouch for the coconspirator’s authenticity. Sewell told both the coconspirator and the facilitator that he would kill the coconspirator if he turned out to be a spy.
The coconspirator made contact with the facilitator and made arrangements with the facilitator to travel to Pakistan to join LeT.
“Sewell allegedly used social media to recruit and encourage an individual to travel overseas to join a foreign terrorist organization and conspired with that person to provide material support to that organization,” said Assistant Attorney General Demers. “The National Security Division is committed to hold accountable those who engage in this behavior.”
“We stay on constant alert for radicals plotting attacks targeting citizens of the United States, here or abroad,” said U.S. Attorney Nealy Cox. “Countering terrorist threats is our highest priority, and we will continue to work to stem the flow of foreign fighters abroad and bring justice to those who attempt to provide material support to foreign terror organizations. I would like to thank the FBI and our Joint Terrorism Task Force partners for all that they do to keep our communities safe.”
"The men and women of FBI Dallas along with our local, state, and federal partners will continue to work diligently against homegrown violent extremists who provide support to any foreign terrorist organization," said Eric K. Jackson, Special Agent-In-Charge of the FBI Dallas Division. "As threats are uncovered to the community we serve, the FBI and its partners must continue to ensure we are vigilant and determined to prevent any harm to this great nation."
The Federal Bureau of Investigation and its Joint Terrorism Task Force members, including the Arlington Police Department, the Fort Worth Police Department, the Tarrant County Sheriff’s Office, the Naval Criminal Investigation Service, the Department of Homeland Security, and the Texas Department of Public Safety, investigated the case.
Norman Seabrook, President of Correction Officers Benevolent Association, Sentenced to 58 Months in Prison for Accepting Bribes in Exchange for Investing Union Money in New York-Based Hedge FundRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that NORMAN SEABROOK, the former president of the Correction Officers’ Benevolent Association (“COBA”) was sentenced to 58 months in prison for his role in a bribery scheme in which he accepted a $60,000 bribe payment, and the promise of future bribe payments, in exchange for SEABROOK’s investment of millions of dollars of COBA money in a hedge fund. SEABROOK was found guilty of honest services fraud offenses on August 18, 2018, after a 10-day trial in Manhattan federal court. Today’s sentence was imposed by U.S. District Judge Alvin K. Hellerstein.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Tens of thousands of hardworking correction officers once looked to Norman Seabrook as their leader and champion. Seabrook now stands convicted of betraying them for a bag full of cash and the promise of more. His conduct resulted not simply in the membership’s loss of faith in its leader, but the loss of millions of dollars in retirement benefits due to union members. My Office has worked tirelessly with our law enforcement partners to hold Seabrook and those who conspired with him to account. Today’s sentence sends an important message to any other person in a position of power that no one is above the law, and that violating a sacred trust in return for a cash payoff will land you on the wrong side of a prison door.”
According to the allegations in the Indictment, Superseding Indictment, and Complaint, other filed documents, and the evidence at trial:
COBA is New York City’s largest correction officers union and the largest municipal jail union in the United States. COBA represents over 20,000 active and retired correction officers in New York City, including at Rikers Island. NORMAN SEABROOK, the defendant, was the president of COBA for over 20 years. SEABROOK wielded enormous power over the affairs of COBA, and was rarely questioned by his executive board, as he had the ability to affect their assignments, pay, and hours. SEABROOK’s control extended to the union’s finances, including the administration of its “Annuity Fund,” a retirement benefits program funded by the City of New York that invests more than $70 million for correction officers’ retirements.
Toward the end of 2013, on a trip to the Dominican Republic with, among others, Jona Rechnitz, a real estate businessman who is now a cooperating witness for the Government, SEABROOK told Rechnitz that he worked hard to invest COBA’s money and was not getting anything out of it, and it was time that “Norman Seabrook got paid.” Rechnitz was friendly with and had done business with Murray Huberfeld, a founder and part owner of Platinum Partners (“Platinum”), a Manhattan-based hedge fund that principally ran two funds. Rechnitz was aware that Platinum was looking to attract public and institutional investors – as opposed to its more typical investor set of high net-worth individuals – and told Huberfeld that SEABROOK would likely invest COBA money in Platinum if Huberfeld were willing to pay SEABROOK money on the side. Huberfeld agreed to the proposition, and Huberfeld worked out a formula in which SEABROOK would be paid a kickback of a portion of the profits from COBA’s investment that Huberfeld estimated would be between $100,000 and $150,000 per year.
SEABROOK then began investing COBA’s money, at first going through the motions of having Platinum make a pitch to COBA’s Annuity Fund board and having advisers conduct diligence. Those advisers included attorneys who wrote letters expressing concern that public pensions like COBA do not typically invest in higher-risk vehicles like hedge funds. SEABROOK concealed those letters from the other members of COBA’s Annuity Fund Board in order to secure their approval for the investment. In March 2014, COBA’s Annuity Fund made a $10 million investment in one of Platinum’s funds. In June 2014 – this time without running the investment by the COBA Board or seeking any approval – SEABROOK invested $5 million, or 40 percent, of COBA’s own assets in the same fund, money that had been set aside for use in the event of a union emergency. In August 2014, the Annuity Fund invested another $5 million in Platinum. By that point, COBA was the largest investor in that Platinum fund for all of 2014, and amounted to more than half of all incoming investments for the fund. At the same time, Platinum was experiencing significant redemptions by other investors.
Toward the end of 2014, SEABROOK wanted the first of his kickback payments, and demanded it from Rechnitz. Huberfeld told Rechnitz that the fund had not performed as well as expected, and that he could pay SEABROOK only $60,000. Rechnitz agreed to lay out the cash, and Huberfeld agreed to reimburse Rechnitz on Platinum’s behalf. Huberfeld suggested that to paper over the reimbursement, Rechnitz invoice Platinum for a number of Rechnitz’s courtside tickets to New York Knicks games, in the amount of $60,000, and Platinum would then cut a check to Rechnitz.
Rechnitz paid SEABROOK the first $60,000 kickback on December 11, 2014. Before meeting SEABROOK that evening, Rechnitz went to one of SEABROOK’s favorite stores, Salvatore Ferragamo on Fifth Avenue in Manhattan, and bought an expensive men’s handbag for SEABROOK. Rechnitz put the money in the bag, and met SEABROOK a few blocks away in SEABROOK’s COBA sport utility vehicle with tinted windows, where he handed SEABROOK the bag. Rechnitz and SEABROOK had dinner with two other persons nearby, then attended a Torah dedication ceremony nearby, after which SEABROOK left Manhattan. These events have been corroborated by, among other things, phone records, emails, license plate reader records, surveillance footage, and a receipt from Salvatore Ferragamo. On the same day, Rechnitz’s assistant prepared a $60,000 invoice to Platinum for Knicks tickets, which Rechnitz forwarded by email to Huberfeld. Three days later, Platinum paid Rechnitz by check.
Huberfeld, through another associate, Jeremy Reichberg, continued to lobby SEABROOK for more money in 2015. However, after a lawsuit filed by a former COBA board member referred to the Platinum investments, and the U.S. Attorney’s Office grand jury investigation resulted in subpoenas to Platinum and COBA in May 2015, no further investments were made. As part of the lawsuit, SEABROOK filed a false affidavit in which he claimed that COBA’s board members had authorized his unilateral and unauthorized June 2014 transfer of $5 million of union funds to Platinum. He also claimed that he himself had paid for his March 2014 trip to Israel when it had, in fact, been paid for by Rechnitz. This lie under oath served to hide SEABROOK’s connection to the Platinum Partners investment and the bribe arrangement behind it.
On May 25, 2018, Huberfeld pled guilty to one count of conspiracy to commit wire fraud in connection with the use of the sham invoice as part of his role in the conspiracy. He is due to be sentenced by Judge Hellerstein on February 12, 2019, and faces a maximum sentence of five years in prison.
On January 2, 2019, Reichberg was found guilty of honest services fraud, conspiracy, and obstruction of justice in connection with a separate scheme in which he and Rechnitz provided gifts and benefits to a number of high-level officers of the New York City Police Department (“NYPD”) in exchange for official police action for themselves and their associates. He is due to be sentenced by U.S. District Judge Gregory H. Woods on April 4, 2019.
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In addition to the prison term, SEABROOK, 58, of the Bronx, New York, was sentenced to three years of supervised release, and ordered to pay restitution in the amount of $19 million.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and the NYPD Internal Affairs Bureau.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Martin Bell, Russell Capone, and Lara Pomerantz are in charge of the prosecution.
Nigerian Business E-mail Scammer Sentenced for FraudRead the Press Release
United States Attorney Joe Kelly announced that Adewale Aniyeloye, age 32 from Nigeria, was sentenced today for Wire Fraud. United States District Court Judge Robert F. Rossiter, Jr., sentenced Aniyeloye to a 96-month term of imprisonment. After his release from prison, Aniyeloye will begin a 3-year term of supervised release. The restitution amount is to be determined and will be ordered at a later date.
From approximately February 2015 to September 2016, Aniyeloye and other co-conspirators engaged in a form of fraud commonly referred to as business e-mail compromise. Aniyeloye used compromised e-mail accounts to send spoofed e-mails to thousands of business employees across the United States who had accounting responsibilities, to include authorizing and sending wire transfers. A spoofed e-mail is one in which the e-mail appears to be originating from a sender other than the person who is truly the sender. Aniyeloye and his co-conspirators posed as Chief Executive Officers or other business executives and would direct recipients of the spoofed e-mails to complete wire transfers. The business employees, thinking that the wire transfer requests were legitimate, would comply with the wire transfer requests and wire money to the location designated in the written instructions. The scheme was primarily conducted from Nigeria where Aniyeloye was living. In 2016, investigators learned Aniyeloye was planning to travel to the United States. He was arrested upon his arrival in Atlanta. Pursuant to this scheme, businesses, including businesses in the District of Nebraska, lost more than $6 million. The attempted losses pursuant to the scheme are more than $30 million. The two Nebraska victims of the fraud scheme lost approximately $163,230.
This case was investigated by the Federal Bureau of Investigation.
New York Man Arrested for Attempting and Conspiring to Provide Material Support to Terrorist OrganizationRead the Press Release
A New York man was charged today with attempting and conspiring to provide material support to Lashkar e-Tayyiba (“LeT”), a Pakistan-based designated foreign terrorist organization responsible for multiple high-profile attacks, including the infamous Mumbai attacks in Nov. 2008. Assistant Attorney General for the National Security Division John C. Demers, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, the Assistant Director-in-Charge William F. Sweeney of the FBI New York Field Office and Commissioner James P. O’Neill of the Police Department for the City of New York (NYPD) made the announcement.
Jesus Wilfredo Encarnacion, a.k.a. “Jihadistsoldgier,” “Jihadinhear,” “Jihadinheart,” “Lionofthegood,” was arrested last night at John F. Kennedy International Airport (JFK Airport) in Queens, New York. Encarnacion is expected to be presented later today before Magistrate Judge Henry B. Pitman in Manhattan federal court.
“Encarnacion allegedly attempted to travel to Pakistan to join a foreign terrorist organization and conspired with another individual to provide that organization with material support,” said Assistant Attorney General Demers. “The National Security Division is committed to identifying and holding accountable those who seek to join and support designated foreign terrorist organizations.”
“As alleged, Jesus Encarnacion, a Manhattan man, plotted to travel to Pakistan to join and train with the terrorist organization Lashkar e-Tayyiba, which is infamous around the world for perpetrating the lethal 2008 Mumbai terror attacks and other atrocities,” said U.S. Attorney Berman. “The excellent work of the FBI and NYPD stopped Encarnacion’s alleged plan to support this deadly terrorist organization before he took flight, and now he will face federal terrorism charges.”
“As alleged, not only did Mr. Encarnacion express a desire to execute and behead people, he scheduled travel and almost boarded a plane so he could go learn how to become a terrorist,” FBI Assistant Director-in-Charge Sweeney Jr. “These organizations are using the internet and social media to appeal to the most barbaric impulses in people, and train them to kill. The FBI New York Joint Terrorism Task Force will continue to do all it can to stop these alleged criminals before innocent people are killed.”
“As alleged, Jesus Encarnacion had expressed his desire to commit a terrorist attack while living in New York City and never abandoned those plans,” said NYPD Police Commissioner O’Neill. “Allegedly, one of his stated motives for traveling overseas was to get the training and experience he believed he needed to someday return to the United States and carry out attacks. I want to commend the FBI Agents, NYPD Detectives and representatives of 54 other agencies that make up the Joint Terrorism Task Force for the investigation that led to this arrest.”
As alleged in the criminal Complaint,[1] filed today in Manhattan federal court:
In Nov. 2018, Encarnacion expressed his desire to join a terrorist group in an online group chat, where he met another individual (CC-1). CC-1 introduced Encarnacion to an individual who, unbeknownst to CC-1 or Encarnacion, was in fact an undercover FBI employee (UC-1). Encarnacion repeatedly expressed, in the course of recorded communications through a social media service with CC-1 and through an encrypted messaging service with UC-1, his allegiance to and support for LeT, which, since approximately 2001, has been designated as a Foreign Terrorist Organization by the United States Secretary of State.
Over the past several months, Encarnacion has discussed his desire and plans to join LeT overseas so that he could receive training and participate in violent acts of terrorism. For example, Encarnacion told UC-1 that he was “ready to kill and die in the name of Allah” and sought UC-1’s assistance to help Encarnacion travel to abroad to serve as an “executioner” for LeT, stating, “I want to execute. I want to behead. Shoot.” Encarnacion further stated that he aspired to commit terrorist attacks (“a bombing and shooting”) in the United States, but lacked “guidance” and “guns” to do so.
During the months that followed, Encarnacion and UC-1 agreed on a plan that Encarnacion believed would allow him to join LeT in Pakistan. Encarnacion told UC-1 that he had made arrangements to travel to a particular city in Europe (the “European City”), as the first step of traveling to Pakistan to join LeT. Encarnacion purchased an airline ticket for a flight scheduled to depart on Feb. 7, 2019, from JFK Airport, to the European City. On Feb. 7, Encarnacion traveled to JFK Airport, where he was arrested by the FBI after he attempted to board that flight.
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Encarnacion, 29, of Manhattan, is charged with one count of attempting to provide material support to a designated foreign terrorist organization and one count of conspiring to provide material support to a designated foreign terrorist organization, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Demers and Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of agents from the FBI, detectives from the NYPD, and officers from numerous other agencies, including U.S. Customs and Border Protection, which assisted significantly in this case.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys David W. Denton Jr. and Kimberly J. Ravener are prosecuting with the assistance of Bridget Behling and Alexandra Hughes of the National Security Division.
The charges contained in the Complaint 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 Complaint and the description of the Complaint set forth below are only allegations, and every fact described should be treated as an allegation.
Nevada Salesman, His Domestic Partner, and Reno Businessman Indicted for Conspiring to Defraud the IRSRead the Press Release
On Feb. 7, 2019, a federal grand jury returned an indictment charging Saud Alessa, Jeffrey Bowen, and Jackie Hayes, with conspiring to defraud the Internal Revenue Service (IRS), and additionally charged Alessa with tax evasion and filing false tax returns, announced Principle Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Nicholas A. Trutanich for the District of Nevada.
According to the indictment, Bowen was the President and owner of a vacuum cleaner distributing company in Reno, Nevada. Alessa worked for Bowen’s company on sales teams from 1998 to 2006. During those years, Alessa allegedly accrued over $200,000 in unpaid federal income tax. In 2006, the IRS began attempting to collect Alessa’s outstanding tax liabilities. Alessa allegedly did not voluntarily pay any of his outstanding debt to the IRS, and in 2013, Alessa filed a bankruptcy petition reporting that he owed a federal tax debt of $503,821 to the IRS.
The indictment charges that between 2010 and 2013 Alessa, Alessa’s longtime domestic partner Hayes, and Bowen conspired to conceal Alessa’s business activity and income from the IRS. Alessa’s commissions and other earned income earned were allegedly recorded in Bowen’s company’s books in Hayes’s name and paid to Hayes instead of Alessa. Alessa, Bowen, and Hayes allegedly filed fraudulent documents with the IRS that disguised the commissions and other income earned by Alessa as income earned by Hayes. In order to further the scheme, the co-conspirators allegedly made false and misleading statements to the IRS, the United States Bankruptcy Court, and the United States Trustee’s office to convince the authorities that Alessa had no business activity and no source of income that could be used to pay Alessa’s outstanding tax debt to the IRS.
The indictment also charges Alessa individually with evading the payment of taxes, penalties and interest due and owing to the IRS for tax years 1998 through 2007, and with filing false income tax returns for 2012 and 2013.
If convicted, Alessa, Bowen, and Hayes each face a maximum sentence of five years in prison on the conspiracy counts. Alessa faces an additional five years in prison on the tax evasion count and an additional three years in prison on each false return count. Alessa, Bowen, and Hayes also face a period of supervised release and monetary penalties.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
IRS-Criminal Investigation investigated the case. Trial Attorneys Christopher Strauss and Michael Landman, both of the Tax Division, along with Assistant United States Attorney Sue Fahami, are prosecuting the case.
Nevada Salesman, His Domestic Partner, and Reno Businessman Indicted for Conspiring to Defraud the IRSRead the Press Release
RENO, Nev. - On Feb. 7, 2019, a federal grand jury returned an indictment charging Saud Alessa, Jeffrey Bowen, and Jackie Hayes, with conspiring to defraud the Internal Revenue Service (IRS), and additionally charged Alessa with tax evasion and filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Nicholas A. Trutanich for the District of Nevada.
According to the indictment, Bowen was the President and owner of a vacuum cleaner distributing company in Reno, Nevada. Alessa worked for Bowen’s company on sales teams from 1998 to 2006. During those years, Alessa allegedly accrued over $200,000 in unpaid federal income tax. In 2006, the IRS began attempting to collect Alessa’s outstanding tax liabilities. Alessa allegedly did not voluntarily pay any of his outstanding debt to the IRS, and in 2013, Alessa filed a bankruptcy petition reporting that he owed a federal tax debt of $503,821, to the IRS.
The indictment charges that between 2010 and 2013 Alessa, Alessa’s longtime domestic partner Hayes, and Bowen conspired to conceal Alessa’s business activity and income from the IRS. Alessa’s commissions and other earned income earned were allegedly recorded in Bowen’s company’s books in Hayes’s name and paid to Hayes instead of Alessa. Alessa, Bowen, and Hayes allegedly filed fraudulent documents with the IRS that disguised the commissions and other income earned by Alessa as income earned by Hayes. In order to further the scheme, the co-conspirators allegedly made false and misleading statements to the IRS, the United States Bankruptcy Court, and the United States Trustee’s office to convince the authorities that Alessa had no business activity and no source of income that could be used to pay Alessa’s outstanding tax debt to the IRS.
The indictment also charges Alessa individually with evading the payment of taxes, penalties and interest due and owing to the IRS for tax years 1998 through 2007, and with filing false income tax returns for 2012 and 2013.
If convicted, Alessa, Bowen, and Hayes each face a maximum sentence of five years in prison on the conspiracy counts. Alessa faces an additional five years in prison on the tax evasion count and an additional three years in prison on each false return count. Alessa, Bowen, and Hayes also face a period of supervised release and monetary penalties.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
IRS-Criminal Investigation investigated the case. Trial Attorneys Christopher Strauss and Michael Landman, both of the Tax Division, along with Assistant United State Attorney Sue Fahami are prosecuting the case.
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Neenah Man Indicted on Drug Dealing and Firearm ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on February 5, 2019, a federal grand jury issued an indictment against Tou W. Vang, also known as “Meng Vang” (age: 38) of Neenah, Wisconsin.
The indictment alleges that Vang possessed methamphetamine and marijuana with the intent to distribute the controlled substances contrary to Title 21, United States Code, Sections 841(a), (b)(1)(A), and (b)(1)(D). Further, he is charged with possession of a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A). If convicted of the charges alleged, Vang faces a mandatory 15 year prison sentence and up to a lifetime of imprisonment.
Vang will be arraigned on February 14, 2019, in Green Bay federal court.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Wisconsin Department of Justice, Division of Criminal Investigation, and the Appleton Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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NDTX Weekly Roundup -- 2/8/19Read the Press Release
SENTENCING – Bradley Matocha
On Feb. 8, Bradley James Matocha, II, was sentenced to more than 13 years in prison, followed by a 20-year term of supervised release, after pleading guilty to attempted enticement of a minor. Matocha, 32, of Plano, responded to an ad in which a father stated he had a daughter who needed to “learn the ropes.” Matocha chatted with both the father and the daughter, offering to meet them and have sex with the minor. With the meeting scheduled for June 26, 2018, Matocha suggested that he and the father first meet at a Jack-in-the-Box in Fort Worth and from there go back to their house where he would have sex with the daughter. When Matocha arrived at the Jack-in-the-Box, however, he was arrested by Fort Worth police, who had engaged in an undercover online operation to ferret out sexual predators.SENTENCING – Paul Morris
On Feb. 8, Paul David Morris of Irving, TX was sentenced to 20 years in prison on drug charges. Mr. Morris pleaded guilty to possession with intent to distribute methamphetamine in March. The Texas Department of Public Safety investigated the case.SENTENCING – Alvin Penn
On Feb. 5, Alvin Christopher Penn was sentenced to 14 years in prison for escape from federal custody and unlawful possession of a firearm. In July, a jury found Mr. Penn guilty of escaping from a residential reentry center in Hutchins, Texas. According to evidence presented at trial, shortly after he escaped from the halfway house, Mr. Penn took possession of a Smith & Wesson pistol and engaged in a gunfight with two men at an apartment complex in Grand Prairie. Shortly thereafter, he fled from police, driving 70 mph in a residential neighborhood, and ultimately crashed into another apartment building. Brandishing the gun at bystanders, he then fled on foot, and was subsequently apprehended by a U.S. Marshals and Grand Prairie Police officers.INDICTMENT* -- Modesto Balderas
On Feb. 5, a federal grand jury indicted Modesto Balderas on a firearm charge. Mr. Balderas, a convicted felon, allegedly possessed a Ruger 9 mm pistol with an obliterated serial number. If convicted, Mr. Balderas faces up to 10 years in federal prison.SENTENCING – Jose Velasquez
On Feb. 4, Jose DeJesus Velasquez was sentenced to more than a year in prison for conspiracy to defraud the United States. Mr. Vasquez, a commercial tax preparer, admits he allowed employees to file tax returns claiming education credits regardless of whether the taxpayer was entitled to those credits. The IRS - Criminal Investigation Division conducted the investigation.* An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Mississippi Accountant Convicted of Tax FraudRead the Press Release
A federal jury today in Hattiesburg, Mississippi convicted certified public accountant Carl Nicholson of conspiracy to defraud the United States, six counts of aiding in the preparation of false tax returns, and four counts of filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and United States Attorney Mike Hurst for the Southern District of Mississippi.
“Today, justice prevailed, the rule of law was enforced, and a long-time tax cheat was held accountable for his crimes,” said U.S. Attorney Hurst. “I commend our prosecutors, agents, and state investigators for their tireless work in bringing this individual and others like him to justice. Today’s verdict proves that no one is beyond the reach of the long arm of the law. We will continue to work with our partners and use every resource available to root out fraud and corruption throughout our state.”
According to court documents and evidence presented at trial, from 2012 to 2014, Nicholson conspired with a client to falsely classify personal expenses as business expenses and filed false tax returns on the client’s behalf. On one occasion, Nicholson directed that a $250,000 payment to one of the client’s personal trusts be classified as a business expense. Nicholson was also found guilty of filing his own false personal income tax returns for 2012 through 2015. Specifically, he falsely claimed expenses, failed to report income, and under-reported the gain on the sale of his accounting firm Nicholson & Company.
Sentencing has been scheduled for May 23, 2019. At sentencing, Nicholson faces a maximum of five years in prison for the conspiracy charge and three years for each charge of filing false tax returns and aiding in the preparation of false tax returns. He also faces supervised release and restitution.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Hurst thanked special agents of Internal Revenue Service – Criminal Investigation and investigators with the Mississippi Auditor’s Office, who investigated the case, and Assistant United States Attorney Jay Golden and Trial Attorney Kim Shartar, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Milwaukee Man and Woman Sentenced to Prison for Five Armed RobberiesRead the Press Release
United States Attorney Matthew D. Krueger has announced that last Friday, United States District Judge Pamela Pepper sentenced Deon Batton to 12 ½ years in prison after he pled guilty to committing five armed robberies in Milwaukee and one count of discharging a firearm during a crime of violence. Judge Pepper previously sentenced Batton’s co-defendant, Laura Walton, to 10 years in prison after she pled guilty to committing five armed robberies and one count of brandishing a firearm during a crime of violence. Neither defendant had a felony conviction prior to their arrest for the armed robberies.
As part of their plea agreements, Batton and Walton admitted to robbing two Subway restaurants, a Cousin’s Subs restaurant, a Taco Bell, and a GameStop store between October 9 and 11, 2017. During each robbery, one or both of them brandished handguns and pointed them at employees. During one of the Subway robberies, Batton discharged his weapon at a security monitor. Under federal law, the discharge of a firearm during a crime of violence, like a robbery, requires a 10-year mandatory minimum prison sentence; brandishing a firearm requires a 7-year mandatory minimum prison sentence.
This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force, the Milwaukee Police Department, and the Milwaukee County District Attorney Investigator’s Office. The case was prosecuted by Assistant United States Attorney Margaret B. Honrath.
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Mexican National who was Previously Convicted of Vehicular Homicide Sentenced for Illegally Reentering United StatesRead the Press Release
CINCINNATI – Daniel Delangel Villeda, 45, a Mexican national, was sentenced in U.S. District Court to 42 months in prison for illegally reentering the United States after being removed from the country.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations announced the sentence handed down today by U.S. District Judge Timothy S. Black.
According to court documents, Villeda was convicted of Aggravated Vehicular Homicide and Aggravated Vehicular Assault in Hamilton County in 2002. In 2006, after serving a five-year prison term, he was removed from the United States.
Villeda then returned to the United States and was arrested in Nebraska in late 2010 for operating a vehicle under the influence. He was subsequently removed from the country again, and returned to the United States for a third time.
He was arrested for operating a vehicle under the influence again and was prosecuted in the Southern District of Ohio for illegal reentry. He was sentenced to 24 months in prison and then removed from the United States in August 2017.
On June 2, 2018, Villeda was arrested by the Hamilton Police Department for operating a vehicle under the influence and was then taken into custody by immigration officers.
U.S. Attorney Glassman commended the cooperative investigation by ICE, as well as Special Assistant United States Attorney Timothy Landry, who is representing the United States in this case.
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Menominee Men Indicted for Firearm Offenses on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on February 5, 2019, a federal grand jury returned a one-count indictment against two men allegedly involved in a firearms offense in the Menominee Indian Reservation. The indictment named Tony A. Fish, Jr. (age: 38) of Zoar and Robert S. Bear (age: 38) of Neopit. The indictment charged both Fish and Bear with being a Felon in Possession of a Firearm, in violation of 18 U.S.C. 922(g). If convicted, each defendant faces a maximum of 10 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release.
According to the indictment, on or about January 6, 2018, while at a residence in the Village of Zoar, Fish and Bear possessed a .30-06 rifle. Both defendants were prohibited from possession of firearms at the time of the incident.
This case is being prosecuted as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
The Menominee Tribal Police Department investigated the case, with assistance from the Menominee County Sheriff’s Office and Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove their guilt beyond a reasonable doubt.
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Men from Navarre and Huron indicted on child pornography chargesRead the Press Release
Two men were indicted for child pornography crimes.
David Nestor, 39, of Navarre, was indicted on one count of receipt and distribution of child pornography and one count of possession of child pornography. Nestor received and distributed images of children engaged in sexually explicit conduct between October and December 2018, and possessed those images on January 22, 2019.
Jordan Coffman, 23, of Huron, was indicted on one count of possession of child pornography. Coffman, in 2015, possessed images of children engaged in sexually explicit conduct.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The Nestor case is being prosecuted by Assistant U.S. Attorney Carol Skutnik following an investigation by the FBI. The Coffman case is being prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman following an investigation by the FBI.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Member of “G’z up” Street Gang Convicted of Two Murders in BrooklynRead the Press Release
A federal jury in Brooklyn returned a guilty verdict today against Nicholas Washington, also known as “Face,” a member of the Bedford Stuyvesant-based street gang G’z Up, on two counts of murder-in-aid of racketeering, two counts of causing a death through the use of a firearm, and attempted obstruction of justice. The verdict followed three weeks of trial before United States District Judge Eric N. Vitaliano. When sentenced, Washington faces a mandatory term of life imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“As the jury found, Washington planned and directed two murderous schemes related to his drug trafficking enterprise at the Marcy Houses that left two unintended victims dead,” stated United States Attorney Donoghue. “Washington will now be held responsible for this total disregard for human life. Today’s verdict underscores the resolve of this Office and our law enforcement partners to eradicate violent gangs that jeopardize the safety of our communities.”
The evidence at trial established that between January 2004 and December 2006, Washington and other members and associates of G’z Up sold crack cocaine at the Marcy Houses in Bedford Stuyvesant, with a base of operations at 564 Park Avenue, as well as in Monticello, New York, and Altoona, Pennsylvania. On February 10, 2005, Washington directed two G’z Up members to kill the leader of a rival drug crew whose members were feuding with G’z Up. Washington provided a handgun and directed the two to ambush the leader of the drug crew inside a building at the Marcy Houses development. Both gunmen fired, but missed their intended target and killed a bystander, Steven Negron.
After Washington’s brother, John Hayes, was murdered by a rival in July 2006, Washington sought revenge. On August 7, 2006, the day of Hayes’s funeral, Washington traveled to the Tompkins Houses in Bedford Stuyvesant with five G’z Up members and associates, where they confronted the individual they believed responsible for Hayes’s murder. Two gunmen opened fire, but again missed their intended target, and instead killed a bystander, Andrell Napper.
Following his indictment on the murders in 2014, Washington evaded arrest for two years and in 2016 attempted to avoid arrest by providing false information to an NYPD officer.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Margaret Gandy and Virginia Nguyen are in charge of the prosecution.
The Defendant:
NICHOLAS WASHINGTON
Age: 35
Bedford Stuyvesant, BrooklynE.D.N.Y. Docket No. 14-CR-266 (ENV)
Member of Brooklyn Street Gang, Cypress Gansta Crips, Sentenced to 30 Years’ Imprisonment for Murder of a Bloods-Affiliated RivalRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Tyvon Bannister, also known as “Turtle,” a member of the Crips-affiliated Cypress Gangsta Crips (CGC) street gang, was sentenced by United States District Judge Brian M. Cogan to 30 years’ imprisonment following his conviction for the July 8, 2014 murder of Rayvon Henreques. Bannister pleaded guilty in May 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“With today’s sentence, Bannister will spend decades in prison for callously ending the life of a 26-year-old man simply because he was associated with a rival gang,” stated United States Attorney Donoghue. “This Office will continue working tirelessly with our law enforcement partners to make our community safe by eradicating these destructive street gangs and holding their violent members accountable.”
“The primary mission of the NYPD and our law enforcement partners is to arrest, prosecute, and send away with a meaningful prison sentence anyone who instills fear in New Yorkers through their criminal actions. With this sentence today, the result of our efforts are tangible. I thank our colleagues at the Eastern District and the FBI for their unceasing professionalism and dedicated work in removing from our streets those who commit crime and disorder, especially when it’s in the form of gang violence,” stated NYPD Commissioner O’Neill.
Bannister is a member of the CGC, which is comprised of individuals residing in and around the Cypress Hills Houses (“Cypress”), a large New York City Housing Authority complex in East New York, Brooklyn. Cypress has been plagued by gang and drug-related violence arising largely from a long-standing feud between the CGC and a local Bloods-affiliated gang. On July 8, 2014, Bannister and another gang member shot and killed Henriques in front of a nightclub in East New York. Henriques was targeted because of his association with the Bloods-affiliated gang.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Margaret E. Gandy, Andrey Spektor and David Gopstein are in charge of the prosecution.
The Defendant:
TYVON BANNISTER (also known as “Turtle”)
Age: 25
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-116 (BMC)
Marketer Agrees to Pay Nearly $340,000 for Allegedly Engaging in an Illegal Kickback Scheme with OK CompoundingRead the Press Release
TULSA, Okla. – James Paul Adams, 35, of Cypress, Texas, also known as Beau Adams, owner of the Texas marketing company One Source Healthcare Organization, LLC, agreed to pay the government $339,412.50 for allegedly accepting illegal kickback payments from OK Compounding, LLC, announced U.S. Attorney Trent Shores.
The U.S. Attorney’s Office in the Northern District of Oklahoma entered into a settlement agreement this week with Adams, in an effort to recoup the costs to the U.S. government resulting from the illegal kickbacks. This civil settlement resulted from an investigation into OK Compounding, a pharmacy previously located in Skiatook, Oklahoma.
The government alleged OK Compounding paid substantial kickbacks to various third-party “marketers” in exchange for those marketers referring prescriptions for compounded drugs to OK Compounding. The kickbacks consisted of a share of the revenue generated by the marketers’ referrals. These arrangements violated the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b).
In an investigation into OK Compounding, the U.S. Attorney’s Office Criminal Division recently brought criminal charges against two men affiliated with pharmacy. In December, a federal grand jury returned an indictment against Christopher Parks, 57, and Dr. Gary Lee, 58, both of Tulsa, for violations of the federal anti-kickback statute and conspiracy to commit health care fraud.
“The federal health care system was intended to benefit and help ailing Americans. It was not designed to promote a system of corruption and kickbacks so that Mr. Adams could live a lavish lifestyle,” said U.S. Attorney Shores. “The Affirmative Civil Enforcement prosecutors in our Civil Division are at the tip of the spear when holding individuals like Mr. Adams accountable for their unscrupulous behavior. Whether due to personal greed or some other corrupt intent, the United States Attorney’s Office will use all tools available - be they criminal or civil - to stop health care fraud.”
Through these schemes, Adams knowingly caused false or fraudulent claims to be presented to TRICARE and Medicare programs for the purpose of defrauding the federal program. Because federal health care programs were involved, the kickbacks were also in violation of the False Claims Act. It is illegal to pay or receive “kickbacks” in conjunction with federal health care insurance.
Laws against kickbacks are crucial to insure that financial motives do not undermine the medical judgment of physicians and other health care providers. The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs.
Affirmative Civil Enforcement (ACE) refers to filing civil lawsuits on behalf of the United States. The purpose of these civil actions is to recover government money lost to fraud or other misconduct or to impose penalties for violations of Federal health, safety, civil rights or environmental laws. As in this action, the ACE team can recover losses from health care providers who defraud Federal health programs like Medicare, Medicaid, and Tricare by overbilling for goods and services or billing for goods and services that were not rendered, not medically necessary, or substandard.
To report fraud and abuse against the Federal government in the Northern District of Oklahoma, please contact the U.S. Attorney’s Office at 918-382-2700 and speak to a member of the ACE unit.
Information regarding health care fraud to Medicare can also be reported to the Department of Health and Human Services, Office of Inspector General, at https://oig.hhs.gov/fraud/report-fraud/index.asp. Information for fraud against Tricare can be reported at https://health.mil/Military-Health-Topics/Access-Cost-Quality-and-Safety/Quality-And-Safety-of-Healthcare/Program-Integrity/Fraud-and-Abuse-Report-Submission-Form.
This matter was handled by Assistant U.S. Attorney for the Affirmative Civil Enforcement unit, Marianne Hardcastle, and is the product of a collaborative investigation by the FBI, U.S. Department of Health & Human Services- Office of Inspector General, Department of Defense- Defense Criminal Investigative Service, Drug Enforcement Administration, U.S. Postal Inspection Service, Oklahoma Attorney General’s Office, Oklahoma State Board of Pharmacy, Oklahoma State Board of Medical Licensure and Supervision and Food and Drug Administration-Office of Criminal Investigation.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Manhattan Man Arrested for Attempting and Conspiring to Provide Material Support to Terrorist OrganizationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John C. Demers, the Assistant Attorney General for National Security, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that JESUS WILFREDO ENCARNACION, a/k/a “Jihadistsoldgier,” “Jihadinhear,” “Jihadinheart,” “Lionofthegood,” was arrested last night at John F. Kennedy International Airport (“JFK Airport”) in Queens, New York. ENCARNACION was charged by a criminal Complaint earlier today with attempting and conspiring to provide material support to Lashkar e-Tayyiba (“LeT”), a Pakistan-based designated foreign terrorist organization responsible for multiple high-profile attacks, including the infamous Mumbai attacks in November 2008. ENCARNACION is expected to be presented later today before Magistrate Judge Henry B. Pitman in Manhattan federal court.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Jesus Encarnacion, a Manhattan man, plotted to travel to Pakistan to join and train with the terrorist organization Lashkar e-Tayyiba, which is infamous around the world for perpetrating the lethal 2008 Mumbai terror attacks and other atrocities. The excellent work of the FBI and NYPD stopped Encarnacion’s alleged plan to support this deadly terrorist organization before he took flight, and now he will face federal terrorism charges.”
Assistant Attorney General John C. Demers said: “Encarnacion allegedly attempted to travel to Pakistan to join a foreign terrorist organization and conspired with another individual to provide that organization with material support. The National Security Division is committed to identifying and holding accountable those who seek to join and support designated foreign terrorist organizations.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, not only did Mr. Encarnacion express a desire to execute and behead people, he scheduled travel and almost boarded a plane so he could go learn how to become a terrorist. These organizations are using the internet and social media to appeal to the most barbaric impulses in people, and train them to kill. The FBI New York Joint Terrorism Task Force will continue to do all it can to stop these alleged criminals before innocent people are killed.”
NYPD Police Commissioner James P. O’Neill said: “As alleged, Jesus Encarnacion had expressed his desire to commit a terrorist attack while living in New York City and never abandoned those plans. Allegedly, one of his stated motives for traveling overseas was to get the training and experience he believed he needed to someday return to the United States and carry out attacks. I want to commend the FBI Agents, NYPD Detectives and representatives of 54 other agencies that make up the Joint Terrorism Task Force for the investigation that led to this arrest.”
As alleged in the criminal Complaint,[1] filed today in Manhattan federal court:
In November 2018, ENCARNACION expressed his desire to join a terrorist group in an online group chat, where he met another individual (“CC-1”). CC-1 introduced ENCARNACION to an individual who, unbeknownst to CC-1 or ENCARNACION, was in fact an undercover FBI employee (“UC-1”). ENCARNACION repeatedly expressed, in the course of recorded communications through a social media service with CC-1 and through an encrypted messaging service with UC-1, his allegiance to and support for LeT, which, since approximately 2001, has been designated as a Foreign Terrorist Organization by the United States Secretary of State.
Over the past several months, ENCARNACION has discussed his desire and plans to join LeT overseas so that he could receive training and participate in violent acts of terrorism. For example, ENCARNACION told UC-1 that he was “ready to kill and die in the name of Allah” and sought UC-1’s assistance to help ENCARNACION travel to abroad to serve as an “executioner” for LeT, stating, “I want to execute. I want to behead. Shoot.” ENCARNACION further stated that he aspired to commit terrorist attacks (“a bombing and shooting”) in the United States, but lacked “guidance” and “guns” to do so.
During the months that followed, ENCARNACION and UC-1 agreed on a plan that ENCARNACION believed would allow him to join LeT in Pakistan. ENCARNACION told UC-1 that he had made arrangements to travel to a particular city in Europe (the “European City”), as the first step of traveling to Pakistan to join LeT. ENCARNACION purchased an airline ticket for a flight scheduled to depart on February 7, 2019, from JFK Airport, to the European City. On February 7, ENCARNACION traveled to JFK Airport, where he was arrested by the FBI after he attempted to board that flight.
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ENCARNACION, 29, of Manhattan, is charged with one count of attempting to provide material support to a designated foreign terrorist organization and one count of conspiring to provide material support to a designated foreign terrorist organization, each of which carries a maximum sentence of 20 years in prison. 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 a judge.
Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of agents from the FBI, detectives from the NYPD, and officers from numerous other agencies, including U.S. Customs and Border Protection, which assisted significantly in this case. Mr. Berman also thanked the Counterterrorism Section of the Department of Justice’s National Security Division.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys David W. Denton Jr. and Kimberly J. Ravener are in charge of the prosecution.
The charges contained in the Complaint 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 Complaint and the description of the Complaint set forth below are only allegations, and every fact described should be treated as an allegation.
Man charged with making threats and assaulting officersRead the Press Release
A federal grand jury returned a two-count indictment charging Lon R. Sweeney, age 53, making threats against a federal employee and assault of federal officers.
The indictment alleges that Sweeney threatened a Department of Veterans Affairs employee and later, while being placed under arrest, assaulted three VA officers.
Assistant U.S. Attorney Brad Beeson is prosecuting the case following an investigation by the Department of Veterans Affairs Office of Inspector General — Criminal Investigative Division and the VA Police Department.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt
Man Who Used Free Wi-Fi at Rochester Laundromat to Download Child Porn Is Going to PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joseph A. Heath, Jr., 46, of Rochester, NY, who was convicted of receipt of child pornography, was sentenced to serve 16 years in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Melissa Marangola, who prosecuted the case, stated the defendant used the Wi-Fi at a laundromat on Monroe Avenue in Rochester to download child pornography. On February 4, 2018, investigators encountered Heath at the laundromat and seized a laptop computer, which contained approximately 80 videos containing child pornography.
The defendant has a prior conviction for the sexual abuse of a 6-year-old girl.
The sentencing is the culmination of an investigation by Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
Man Sentenced to Year in Prison for Bankruptcy FraudRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Teddy Stevens, 45, currently of Arizona but formerly of Middleton, Wisconsin, was sentenced yesterday by U.S. District Judge William Conley to one year and one day in federal prison for bankruptcy fraud. Stevens pleaded guilty to the charge on November 7, 2018.
Stevens defrauded the bankruptcy court and his creditors by making false statements on his bankruptcy documents and by making false statements under oath at a bankruptcy hearing called the Meeting of Creditors. Through his conduct, Stevens was attempting to shield from the bankruptcy trustee certain real-estate related assets. At his Meeting of Creditors, Stevens provided a false address and falsely testified under oath that he had not sold, transferred, given away or otherwise disposed of any of his assets in the four years prior to filing. Stevens also convinced another individual to provide false information to the bankruptcy court in an effort to conceal his real interest in a residence.
In selecting a sentence of prison, Judge Conley noted that Stevens’s actions were calculated and egregious. Judge Conley also said that he wanted to deter others from engaging in similar conduct.
The charges against Stevens were the result of an investigation conducted by the Federal Bureau of Investigation and IRS Criminal Investigation. The U.S. Attorney’s Office also acknowledges the assistance of the Office of the United States Trustee in Madison, Wisconsin. The prosecution of the case has been handled by Assistant U.S. Attorney Meredith Duchemin.