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Wednesday 30 January 2019
Van Buren, Arkansas Woman Sentenced to 24 Months Probation, $4,000 Restitution for Theft from Tribal OrganizationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jessie Lee Ross, age 44, of Van Buren, Arkansas, was sentenced to 2 years’ probation and ordered to pay restitution in the amount of $4,328.20 for Embezzlement And Theft From an Indian Tribal Organization, in violation of Title 18, United States Code, Section 1163. The charges arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation.
The Indictment alleged that from on or about September 1, 2014 to on or about September 25, 2014, in the Eastern District of Oklahoma, the defendant stole, embezzled and knowingly and willfully converted to her own use goods, assets, and other property, with a value in excess of $1,000.00, which had been entrusted to her custody and care as an employee of the Choctaw Nation of Oklahoma Casino gift shop, an Indian tribal organization.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney John David Luton represented the United States.
U.S. Attorney’s Guardians Project Results in Multiple Defendants Facing Federal Charges and SentencingRead the Press Release
United States Attorney Ron Parsons has announced the following charges and pleas in cases, identified below, brought by the Guardians Project, a collaborative federal law enforcement initiative in the District of South Dakota designed to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those responsible for adversely affecting those living in South Dakota’s Indian country communities.
Led by the U.S. Attorney’s Office, participating federal agencies in the Guardians Project include: the Federal Bureau of Investigation; Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; and the U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Business Owner Indicted for Bribery Related to Programs Receiving Federal Funds
John Thomas German, age 35 of Peever, South Dakota, was indicted on January 8, 2019, on three counts of bribery concerning programs receiving federal funds. German appeared before U.S. Magistrate Judge William D. Gerdes on January 24, 2019, and pleaded not guilty to the Indictment.
The Indictment alleges that on or about November 6, 2017, November 17, 2017, and between January 1, 2018, and August 10, 2018, in the District of South Dakota, John Thomas German, Jr., did corruptly give, offer, and agree to give a thing of value to any person intending to influence and reward an agent of the Dakota Nations Development Corporation, in connection with a transaction and series of transactions of the Dakota Nations Development Corporation involving $5,000 or more.
The maximum penalty upon conviction is up to 10 years in prison, and/or a $250,000 fine, or both, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy Jehangiri is prosecuting the case.
The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
Idaho Business Owner and His Company Plead Guilty to Wire Fraud and Conspiracy Charges for defrauding Oglala Sioux Tribe
Christopher A. Hoshaw, age 45, of Meridian, Idaho, appeared before U.S. District Judge Karen E. Schreier on January 28, 2019, and pleaded guilty to an Information that charged him with Wire Fraud. Hoshaw also appeared on behalf of his Boise-based company, All Around Sports, LLC, which pleaded guilty to Conspiracy to Commit Wire Fraud.
According to documents filed with the Court, beginning at a time unknown but no later than on or about December 2015, and continuing through December 2016, in the District of South Dakota and elsewhere, All Around Sports, LLC, with others known and unknown to the United States, did conspire to commit the offense of wire fraud. Through company representatives, All Around Sports, LLC, willfully and unlawfully devised a scheme to defraud and obtain money and property from others by means of false and fraudulent pretenses, representations, and promises. Those representatives knowingly participated, using the company as a conduit, by receiving money transfers from sources they knew were the victims of the fraudulent scheme. Those representatives also acted willfully for the purpose of enriching the company and themselves. The object of the conspiracy was to enrich the owner, managers, and employees of All Around Sports, LLC, by fraudulently obtaining funds.
On or about May 11, 2016, in the District of South Dakota and elsewhere, Christopher A. Hoshaw devised and intended to devise a scheme to defraud the Oglala Sioux Tribe, and to obtain money and property by means of materially false and fraudulent pretenses, representations, and promises. For the purpose of executing the scheme, Hoshaw knowingly caused to be transmitted by means of wire communication in interstate commerce the withdrawal of funds from a banking account belonging to the Oglala Sioux Tribe, at The First National Bank of Gordon in Gordon, Nebraska, to an account belonging to All Around Sports, LLC, at Idaho Central Credit Union in the State and District of Idaho. The amount of the wire transfer was $54,000.
A sentencing date was set for April 22, 2019. Hoshaw was released on bond pending sentencing. Another defendant, Kristin DeBoer previously pleaded guilty for her role in the fraud scheme on July 30, 2018. DeBoer was released on bond pending sentencing. Her sentencing date is set for May 6, 2019.
The maximum penalties that the company faces for Conspiracy to Commit Wire Fraud are probation, $500,000 fine, $400 special assessment to the Victim’s Assistance Fund, restitution, and forfeiture. The maximum penalties that Hoshaw and DeBoer face for Wire Fraud are 20 years in federal prison, $250,000 fine, or both imprisonment and a fine, a term of 3 years of supervised release, a $100 special assessment to the Victim’s Assistance Fund, restitution, and forfeiture.
These investigations are being conducted by the U.S. Department of Health and Human Services, Office of the Inspector General. The cases are being prosecuted by Assistant U.S. Attorney Jeremy Jehangiri.
Two Lowell Men Charged with Heroin and Fentanyl TraffickingRead the Press Release
BOSTON – Two Lowell men were indicted today in federal court in Boston for heroin and fentanyl trafficking.
Joshua Ramos-Rios, 30, and Anderson Daniel Jorge Cruz, 20, were indicted for conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and fentanyl. Ramos-Rios and Jorge Cruz were arrested on Jan. 23, 2019, and charged by complaint. They have been in custody since.
According to the charging documents, on Jan. 23, 2019, federal, state, and local law enforcement seized over one kilogram of suspected heroin and fentanyl from Ramos-Rios and Jorge Cruz in an undercover operation. Ramos-Rios is currently on parole in Massachusetts for drug and firearm offenses, and Jorge Cruz has an outstanding warrant for homicide in Allentown, Pennsylvania.
The charge of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years of supervised release, and a fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Lowell Police Superintendent Raymond Kelly Richardson; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Two Individuals Arrested for Fraud Targeting Actors and OthersRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today that THOMAS IRIGOYEN and NICHOLAS OFEI COFIE were charged with conspiring to commit wire and mail fraud in connection with a scheme to defraud actors in New York City and elsewhere. IRIGOYEN was arrested in California and will be presented today before a U.S. Magistrate Judge of the Central District of California, and COFIE was arrested in New York City and will be presented this afternoon before U.S. Magistrate Judge Barbara C. Moses in federal court in Manhattan.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Irigoyen and Cofie preyed on actors in New York and elsewhere, falsely offering their victims the chance to act in commercials, and ‘paying’ them upfront fees with fictitious money orders or checks. The victims were then allegedly duped into paying phantom ‘wardrobe consultants’ by withdrawing funds against the bogus money orders, and left liable for the withdrawals. The defendants’ own alleged role-playing performances have earned them arrests on federal charges.”
HSI Special Agent-in-Charge Angel M. Melendez said: “As alleged, this fraudulent scheme, operating out of New York and California, sought to exploit the aspirations of young actors, defrauding them of thousands of dollars. These two individuals allegedly used professional actors, misled them for their own gain while crushing their dreams in the process. But now, thanks to the diligent work of law enforcement, they will face the consequences of their alleged crimes.”
NYPD Commissioner James P. O’Neill said: “These charges reflect the increasingly sophisticated ways criminals target people eager to find success in new and potentially lucrative careers. Something that will never change, however, is the focused determination of the NYPD and our law enforcement partners to keep people safe by fighting crime wherever it may lurk – including in the dark corners of cyberspace. I thank the U.S. Attorney for the Southern District and Homeland Security Investigations, whose members helped us uncover and identify the individuals named in this complaint. Together, we demonstrate time and again that we are patient and that our collaborative forces have a long reach. We will continue to be relentless in our mission to dismantle these types of operations and bring those who run them to justice.”
According to the allegations in the Complaint sworn out in Manhattan federal court:[1]
Between approximately December 2016 and the present, IRIGOYEN and COFIE participated in a conspiracy that took advantage of aspiring actors. As part of the scheme, IRIGOYEN and COFIE offered aspiring actors the opportunity to act in a commercial, provided those actors with an upfront payment in the form of a fake money order or check, and persuaded the actors to withdraw money against the fake money orders or checks and to transfer a substantial portion of the withdrawn money to so-called “wardrobe consultants” via wire transfer, the mail, and converting the money into cryptocurrency.
In the end, the jobs promised to the actors were fictitious, the financial instruments provided to the actors were fake, and the wardrobe consultants were non-existent. The victims of the scheme were left liable for the value of the fake financial instruments they had deposited into and transferred out of their respective bank accounts.
In the course of the conspiracy, IRIGOYEN purchased postage and mailed more than 450 envelopes from fictitious production companies to actors. IRIGOYEN also received payments that actors believed they were sending to “wardrobe consultants.” A bank account controlled by COFIE was presented to at least one actor-victim as an account affiliated with a “wardrobe consultant.”
In addition to the scheme described above, COFIE is also charged with one count of wire fraud for his role in defrauding a female who was tricked into believing she was entering a romantic relationship with a third party and who then transferred thousands of dollars into bank accounts under COFIE’s control.
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IRIGOYEN, 51, of Kingsburg, California, and COFIE, 36, of the Bronx, New York, are each charged with one count of conspiring to commit mail fraud and wire fraud, which carries a maximum sentence of 20 years. COFIE is separately charged with an additional count of wire fraud, which carries a maximum sentence of 20 years.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of HSI and NYPD.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Daniel H. Wolf is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are 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 herein constitute only allegations, and every fact described should be treated as an allegation.
Two Dominican Nationals Indicted for Drug TraffickingRead the Press Release
BOSTON – Two Dominican nationals were indicted today in federal court in Boston for heroin trafficking.
Angel Martinez-Peguero, 27, and his brother Alexander Martinez-Peguero, 38, both of whom resided in Lawrence, were charged with conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin. Angel Martinez-Peguero was additionally charged with possession of a firearm in furtherance of a drug trafficking crime. The brothers will be arraigned at a later date set by the court.
According to the charging documents, on Dec. 20, 2018, investigators seized nearly one kilogram of heroin from the Martinez-Peguero brothers during a law enforcement operation in Lawrence. Investigators also seized a loaded semi-automatic pistol from Angel Martinez-Peguero’s waistband upon his arrest.
The charge of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin carries a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of $5 million. The charge of possession of a firearm in furtherance of a drug trafficking crime provides for a mandatory minimum sentence of five years in prison to be served consecutive to any sentence imposed for the underlying drug trafficking crime. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tuba City Man Sentenced to 19 Years in Federal Prison for Second Degree MurderRead the Press Release
PHOENIX – This week, Eric Mychal Iron, 33, of Tuba City, Ariz., a member of the Navajo Nation, was sentenced by U.S. District Judge Diane J. Humetewa to 228 months in prison, followed by a term of five years of supervised release. Iron had previously pleaded guilty to second degree murder.
On Dec. 4, 2016, while recklessly driving at approximately two times the posted speed limit, Iron failed to stop for a stop sign and the collision caused the four victims in the other vehicle to be ejected, resulting in fatal injuries to two of them, including a minor. The two other victims suffered serious bodily injuries due to the crash. Blood taken from Iron almost two hours after the accident was found to have a blood alcohol content of .308%, close to four times the legal limit. Iron had previously been convicted in tribal court of crimes related to intoxication, including driving under the influence. The victims were/are members of the Navajo Nation and the murder happened on the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Navajo Nation Department of Law Enforcement, and the Arizona Department of Public Safety. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-08087-PCT-DJH
RELEASE NUMBER: 2019-001_Iron
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Town of Bethlehem Agrees to Increase Accessibility in Order to Comply with Americans with Disabilities ActRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with the Town of Bethlehem, Connecticut, to resolve allegations that Bethlehem’s Town Hall and Memorial Hall buildings were not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by an individual with disabilities alleging that Bethlehem’s Town Hall and Memorial Hall facilities were not accessible to individuals with physical disabilities. Bethlehem is in the process of making changes to both facilities as required by the settlement agreement, including improving the accessibility of entrances and access routes, increasing the number of accessible parking spaces and adding van accessible parking spaces, adding accessible features to restrooms, and providing accessible signage. Bethlehem is also updating its policies and procedures to ensure access for individuals with disabilities to the Town Clerks’ Office, the Registrar of Voters, and the First Selectman’s Office. Bethlehem will continue to make improvements and changes to enhance accessibility over the next 23 months.
Under federal law, public entities are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
U.S. Attorney Durham commended the leadership of the Town of Bethlehem for having worked cooperatively and collaboratively with the U.S. Attorney’s Office to address the ADA issues expeditiously and without litigation.
“Among the most important protections provided by the Americans with Disabilities Act are those ensuring individuals with disabilities have access to public services, such as voting and participating in civic activities and town meetings,” said U.S. Attorney Durham. “Our Office is committed to enforcing the ADA, which requires public entities, including municipalities, to provide access to individuals with disabilities. We greatly appreciate the willingness of the Town of Bethlehem and the commitment of its First Selectman to greatly increase the accessibility and usability of Bethlehem’s Town Hall and Memorial Hall facilities.”
Any member of the public who wishes to file a complaint alleging that a public entity or place of public accommodation in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Three St. Croix Men Plead Guilty to Distribution of Cocaine and Crack CocaineRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced that on Friday, January 18, 2019, Robert Klyvert, 47, of St. Croix, Virgin Islands, pleaded guilty before U.S. Magistrate Judge George Cannon, Jr., to distribution of crack cocaine. On January 29, 2019, Nolly King Jr., 36, pleaded guilty to distribution of crack cocaine and Thaddeus Hendricks, 39, both of St. Croix, pleaded guilty to distribution of cocaine, before Judge Cannon.
According to plea agreements filed with the court, in September of 2016, the defendant, Robert Klyvert, aka "Family", told a confidential human source (CHS) that he wanted to begin supplying cocaine to the CHS directly, now that one of Klyvert’s associates was dead. Through phone calls and text messages over the next few months, Klyvert informed the CHS that he had a kilogram of cocaine in Florida; that Klyvert would contact the CHS once the cocaine arrived in the United States; and that the CHS would need to travel to Florida to receive it. Klyvert also stated that the cocaine would be "fronted" to the CHS, who would have approximately a week to sell the drugs and pay $25,000 to Klyvert. In addition, Klyvert advised the CHS that the cocaine was not good for "the nose" (in other words, to snort as powder cocaine) and that it was only suitable for converting into crack cocaine. Klyvert told the CHS that if he sold this kilo quickly, the defendant’s supplier would ship another kilogram to the United States on January 2, 2017, and the CHS could purchase that kilogram as well.
After a series of text messages from Klyvert, the CHS obtained the cocaine from defendant Nolly King at King’s Florida residence. Shortly thereafter, Klyvert texted the CHS advising the CHS that he only needed to pay $22,000 for the cocaine, as the amount of cocaine was approximately 4 ounces short of a full kilo, so he did not need to pay the $25,000 they had previously agreed upon. Laboratory tests subsequently confirmed that the substance received by the CHS on December 30, 2016 was cocaine base (also known as "crack" cocaine) and cocaine hydrochloride with a net weight of over 884 grams.
Shortly thereafter on January 15, 2017, defendant Hendricks travelled from St. Croix to St. Thomas to deliver cocaine for Robert Klyvert aka "Family." The CHS picked up Hendricks at the Cyril E. King Airport in St. Thomas and transported him to the Palms Court Hotel. The CHS gave Hendricks $22,000 in exchange for cocaine that the CHS had previously picked up in Orlando. Hendricks returned to St. Croix, where Klyvert met Hendricks at the Rohlsen Airport. Laboratory tests subsequently confirmed that the cocaine transported by Hendricks had a net weight of over 971.8 grams.
Klyvert faces a mandatory minimum sentence of 15 years and not more than life, and up to a $10,000,000 fine. His sentencing date has been set for May 22, 2019. King faces a mandatory minimum of 10 years and not more than life and up to a $10,000,000 fine. Hendricks faces a mandatory minimum of five (5) years and not more than 40 years and up to a $5,000,000 fine. A sentencing date has been set for May 30, 2019 for both King and Hendricks.
The case was investigated by the Federal Bureau of Investigation with assistance from the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorneys Rhonda Williams-Henry and Melissa Ortiz.
Sunoco pipeline LP to pay more than $5.4m and take oil-spill prevention steps to settle claims for pipeline spills in three statesRead the Press Release
WASHINGTON – In the latest joint federal-state Clean Water Act enforcement action, Sunoco Pipeline L.P. has agreed to pay civil penalties and state enforcement costs and to implement corrective measures to resolve alleged violations of the Clean Water Act and state environmental laws by Sunoco and Mid-Valley Pipeline Company stemming from three crude oil spills in 2013, 2014, and 2015, in Texas, Louisiana, and Oklahoma.
The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the Louisiana Department of Environmental Quality (LDEQ) jointly announced the settlement.
Under a proposed consent decree lodged today in the U.S. District Court for the Western District of Louisiana, Sunoco will pay the United States $5 million in federal civil penalties for the Clean Water Act violations and pay LDEQ $436,274.20 for civil penalties and response costs to resolve claims asserted in a complaint filed today. Additionally, Sunoco agreed to take actions to prevent future spills by identifying and remediating the types of problems that caused the prior spills. This includes performing pipeline inspections and repairing pipeline defects that could lead to future spills. Sunoco is also required to take steps to prevent and detect corrosion in pipeline segments that Sunoco is no longer using. Mid-Valley, the owner of the pipeline that spilled oil in Louisiana, is responsible, along with Sunoco, for payment of the civil penalties and state costs relating to the Louisiana spill.
“This settlement holds Sunoco and Mid-Valley accountable for the harms to the environment caused by their oil spills and requires Sunoco to improve its environmental safety compliance for the oil pipelines that it operates in Texas, Louisiana, and Oklahoma,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “This excellent result shows how a strong federal and state partnership can bring about effective environmental enforcement to protect local communities in these states.”
“My office is committed to protecting Louisiana’s environment for the health, well-being, and enjoyment of our citizens,” said U.S. Attorney David C. Joseph for the Western District of Louisiana. “This settlement is but one example of my commitment to work with the Environmental Protection Agency and Louisiana Department of Environmental Quality to make Louisiana a cleaner and healthier place to live.”
“Our nation relies on the oil and gas sector to meet our energy needs, and we also expect companies to do so while protecting our vital water resources,” said EPA Regional Administrator Ann Idsal. “Companies who violate this responsibility must face consequences and assure their future compliance.”
“Pipelines are generally a very safe medium for transporting crude oil, but like any other infrastructure, pipelines require maintenance and monitoring. When companies neglect these necessary actions, pipelines can weaken and a spill can occur, which results in damage to the environment,” said LDEQ Secretary Dr. Chuck Carr Brown. “LDEQ is committed to pursuing legal action against anyone whose actions cause damage to the environment of the state of Louisiana.”
The Complaint alleges federal and state claims relating to three crude oil spills: a 2013 spill of 550 barrels in Tyler County, Texas; a 2014 spill of approximately 4,500 barrels in Caddo Parish, near Mooringsport, Louisiana; and a 2015 spill of 40 barrels in Grant County, Oklahoma. The Texas spill affected Russell Creek, which flows to the Neches River. The Louisiana spill—the largest of the three—flowed to Tete Bayou, a tributary of Caddo Lake. The Oklahoma spill flowed into two creeks that flow to the Arkansas River, affecting an area of about a half a mile. All three spills resulted from pipeline corrosion.
The Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. The penalty paid to the United States will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. Those funds will be available to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.
The proposed consent decree, lodged with the court today, is subject to a public comment requirements and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/consent-decrees.
Sunoco Pipeline LP to Pay More Than $5.4 Million and Take Oil-Spill Prevention Steps to Settle Claims for Pipeline Spills in Three StatesRead the Press Release
In the latest joint federal-state Clean Water Act enforcement action, Sunoco Pipeline L.P. has agreed to pay civil penalties and state enforcement costs and to implement corrective measures to resolve alleged violations of the Clean Water Act and state environmental laws by Sunoco and Mid-Valley Pipeline Company stemming from three crude oil spills in 2013, 2014, and 2015, in Texas, Louisiana, and Oklahoma.
The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the Louisiana Department of Environmental Quality (LDEQ) jointly announced the settlement.
Under a proposed consent decree lodged today in the U.S. District Court for the Western District of Louisiana, Sunoco will pay the United States $5 million in federal civil penalties for the Clean Water Act violations and pay LDEQ $436,274 for civil penalties and response costs to resolve claims asserted in a complaint filed today. Additionally, Sunoco agreed to take actions to prevent future spills by identifying and remediating the types of problems that caused the prior spills. This includes performing pipeline inspections and repairing pipeline defects that could lead to future spills. Sunoco is also required to take steps to prevent and detect corrosion in pipeline segments that Sunoco is no longer using. Mid-Valley, the owner of the pipeline that spilled oil in Louisiana, is responsible, along with Sunoco, for payment of the civil penalties and state costs relating to the Louisiana spill.
“This settlement holds Sunoco and Mid-Valley accountable for the harms to the environment caused by their oil spills and requires Sunoco to improve its environmental safety compliance for the oil pipelines that it operates in Texas, Louisiana, and Oklahoma,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “This excellent result shows how a strong federal and state partnership can bring about effective environmental enforcement to protect local communities in these states.”
“My office is committed to protecting Louisiana’s environment for the health, well-being, and enjoyment of our citizens,” said U.S. Attorney David C. Joseph for the Western District of Louisiana. “This settlement is but one example of my commitment to work with the Environmental Protection Agency and Louisiana Department of Environmental Quality to make Louisiana a cleaner and healthier place to live.”
“Our nation relies on the oil and gas sector to meet our energy needs, and we also expect companies to do so while protecting our vital water resources,” said EPA Regional Administrator Ann Idsal. “Companies who violate this responsibility must face consequences and assure their future compliance.”
“Pipelines are generally a very safe medium for transporting crude oil, but like any other infrastructure, pipelines require maintenance and monitoring. When companies neglect these necessary actions, pipelines can weaken and a spill can occur, which results in damage to the environment,” said LDEQ Secretary Dr. Chuck Carr Brown. “LDEQ is committed to pursuing legal action against anyone whose actions cause damage to the environment of the state of Louisiana.”
The Complaint alleges federal and state claims relating to three crude oil spills: a 2013 spill of 550 barrels in Tyler County, Texas; a 2014 spill of approximately 4,500 barrels in Caddo Parish, near Mooringsport, Louisiana; and a 2015 spill of 40 barrels in Grant County, Oklahoma. The Texas spill affected Russell Creek, which flows to the Neches River. The Louisiana spill—the largest of the three—flowed to Tete Bayou, a tributary of Caddo Lake. The Oklahoma spill flowed into two creeks that flow to the Arkansas River, affecting an area of about a half a mile. All three spills resulted from pipeline corrosion.
The Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. The penalty paid to the United States will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. Those funds will be available to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.
The proposed consent decree, lodged with the court today, is subject to a public comment requirements and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/consent-decrees.
Stigler Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Clinton Shane Strable, age 36, of Stigler, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that, on or about April 22, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms and ammunition, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Haskell County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Clay Compton represented the United States.
Stigler Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Clinton Shane Strable, age 36, of Stigler, Oklahoma, entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleged that, on or about September 18, 2018, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Pittsburg County Sheriff’s Office and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Clay Compton represented the United States.
Rhode Island Man Sentenced for Bank RobberyRead the Press Release
BOSTON - A Rhode Island man was sentenced today in federal court in Boston for bank robbery.
Stephen A. Davidow, 55, of Pawtucket, R.I., was sentenced by U.S. District Court Chief Judge Patti B. Saris to seven years in prison, three years of supervised release, and ordered to pay restitution of $8,817. In September 2018, Davidow pleaded guilty to four counts of bank robbery.
Between Dec. 6 and Dec. 11, 2017, an individual, later identified as Davidow, robbed four banks in the Greater Boston area. Based on the physical location of the banks, surveillance footage, the bank tellers’ descriptions of the robber, and other similarities, law enforcement determined that the same individual was involved in each robbery. On Dec. 15, 2017, having distributed images of the alleged perpetrator to the local news, law enforcement received a tip that the suspect was Davidow. Photos of Davidow were shown to one of the tellers who positively identified Davidow as the man who robbed the bank.
During the time of the robberies, Davidow was on supervised release for a 2007 bank robbery conviction in Rhode Island. Davidow was located and was arrested on Dec. 18, 2017, in Massachusetts on a Rhode Island federal warrant and has been in custody since his arrest.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; John Gibbons, U.S. Marshal for the District of Massachusetts; Boston Police Commissioner William Gross; and Boston University Police Chief Kelly A. Nee made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Rapid City Man Indicted for Failing to Pay TaxesRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Pay Tax.
Gregory Sperlich, age 48, was indicted on January 22, 2019. He appeared before U.S. Magistrate Judge Veronica Duffy on January 28, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 1 year in prison and/or a $100,000 fine, and $25 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that Sperlich did willfully fail to pay the income and self-employment tax due to the Internal Revenue Service by April 15, 2013, through April 15, 2016, for the filed taxes due for the calendar years 2012―2015.
The charges are merely accusations and Sperlich is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Sperlich was released on bond pending trial. A trial date has not been set.
Project Safe Neighborhoods Prosecution Results in Significant Prison Sentence for Felon in Unlawful Possession of A Stolen FirearmRead the Press Release
LAS VEGAS, Nev. – A felon who shot a person with a loaded stolen semi-automatic pistol was sentenced today to a total of 57 months in federal prison, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI.
“DOJ’s Project Safe Neighborhoods Program is designed to take guns off our streets and make our communities safer,” said U.S. Attorney Trutanich. “This case demonstrates the dangers of local police work and importance of strong local and federal partnerships to protect the citizens of Nevada. Law enforcement will work together to enforce gun laws.”
“Today’s sentencing is yet another example of the result that comes from strong law enforcement partnerships,” said Special Agent in Charge Rouse. “The Criminal Apprehension Team (CAT) is a FBI-led, multijurisdictional task force consisting of the FBI, Las Vegas Metropolitan Police Department, Henderson Police Department, and North Las Vegas Police Department, that targets the most violent fugitives.”
Steven Lamar Reed, 28, of Las Vegas, previously pleaded guilty to one count of felon in possession of a firearm. He has prior felony convictions in California including robbery and felon in possession of a firearm. In addition to the prison term, U.S. District Judge Kent J. Dawson sentenced him to three years of supervised release.
On April 11, 2017, members of the FBI’s CAT attempted to arrest Reed for his involvement in an earlier shooting. He also had an arrest warrant for a felony parole violation in California. When officers identified themselves and approached Reed at an apartment complex, he immediately fled, leading officers on a lengthy foot chase. Before climbing a wall in an attempt to evade arrest, a .45 caliber pistol fell from his waistband and the pistol was secured by law enforcement. This firearm had been previously stolen in a residential burglary and was used by Reed in the earlier shooting. Reed was taken into custody by law enforcement.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Phillip N. Smith Jr. and Elham Roohani prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Pierre Man Indicted for Criminal Contempt ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Criminal Contempt.
Charles Black Spotted Horse, age 26, was indicted on January 22, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 29, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 6 months in federal prison and/or a $1,000 fine, and $10 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 26, 2018, Black Spotted Horse disobeyed and resisted an order and command of the U.S. District Court, in that he failed to self-report for arrest and left the federal building.
The charge is merely an accusation and Black Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Black Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Pathology Laboratory Agrees to Pay $63.5 Million for Providing Illegal Inducements to Referring PhysiciansRead the Press Release
Pathology laboratory company Inform Diagnostics has agreed to pay $63.5 million to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today. Inform Diagnostics, formerly known as Miraca Life Sciences Inc., is headquartered in Irving, Texas, and was a subsidiary of Miraca Holdings Inc., a Japanese company, during the period relevant to the case. In 2017, majority ownership of the company changed, and the company was renamed.
“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources because those relationships can alter a physician’s judgment about the patient’s true health care needs and drive up health care costs for everybody,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “In addition to yielding a substantial recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
The settlement announced today resolves allegations that the company violated the Anti-Kickback Statute and the Stark Law by providing to referring physicians subsidies for electronic health records (EHR) systems and free or discounted technology consulting services. The Anti-Kickback Statute and the Stark Law restrict the financial relationships that health care providers, including laboratories, may have with doctors who refer patients to them. Although regulations adopted by the Department of Health and Human Services (HHS) in 2006 included provisions that allowed laboratories to provide EHR donations to physicians under certain conditions, the United States alleged that the defendant violated those conditions. HHS withdrew those exemptions for laboratories in 2013.
“The wellbeing and needs of the patient should always be a medical provider’s primary considerations,” said U.S. Attorney Don Cochran of the Middle District of Tennessee. “The restrictions imposed by federal statutes exist to prevent improper influence on the parties prescribing and providing medical services, including laboratory tests. We will continue to enforce the laws that protect the integrity of federal health care programs.”
“Patients deserve the unfettered, independent judgment of their health care professionals. Offering financial incentives to physicians and medical practices in exchange for referrals undermines citizens’ trust in our health care system,” said United States Attorney Maria Chapa Lopez of the Middle District of Florida. “With this settlement, our Civil Division confirms its commitment to our nation’s critical struggle against practices that put public health programs at risk.”
“When health care providers are distracted by suspect financial arrangements, the interests of patients can be cast aside,” said Special Agent in Charge Derrick L. Jackson of HHS OIG. “Our agency, working closely with our law enforcement partners, will continue to protect patients and the federal health care programs that serve them.”
The allegations stem from three lawsuits that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the United States for false claims and share in any recovery. The whistleblowers’ share of the settlement announced today has not yet been determined.
The case was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Tennessee, the U.S. Attorney’s Office for the Middle District of Florida, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. The claims asserted against Miraca are allegations only, and there has been no determination of liability.
The cases are captioned: United States ex rel. Dorsa v. Miraca Life Sciences, Inc., Case No. 13-cv-1025 (M.D. Tenn.); United States ex rel. LPF, LLC v. Miraca Life Sciences, Inc., et al., 3:16-cv-1355 (M.D. Tenn.); and United State ex rel. Heaphy, et al. v. Miraca Life Sciences, Inc., 3:18-cv-1027 (M.D. Tenn.).
Pathology Laboratory Agrees to Pay $63.5 Million for Providing Illegal Inducements to Referring PhysiciansRead the Press Release
NASHVILLE, Tenn. – January 30, 2019 – Pathology laboratory company Inform Diagnostics has agreed to pay $63.5 million to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department, United States Attorney Don Cochran for the Middle District of Tennessee, and United States Attorney Maria Chapa Lopez for the Middle District of Florida announced today. Inform Diagnostics, formerly known as Miraca Life Sciences, Inc., is headquartered in Irving, Texas, and was a subsidiary of Miraca Holdings, Inc., a Japanese company, during the period relevant to the case. In 2017, majority ownership of the company changed, and the company was renamed.
“The wellbeing and needs of the patient should always be a medical provider’s primary considerations,” said U.S. Attorney Don Cochran of the Middle District of Tennessee. “The restrictions imposed by federal statutes exist to prevent improper influence on the parties prescribing and providing medical services, including laboratory tests. We will continue to enforce the laws that protect the integrity of federal health care programs.”
The settlement announced today resolves allegations that the company violated the Anti-Kickback Statute and the Stark Law by providing subsidies for electronic health records (EHR) systems and free or discounted technology consulting services to referring physicians and physician groups. The Anti-Kickback Statute and the Stark Law restrict the financial relationships that health care providers, including laboratories, may have with doctors who refer patients to them. Although regulations adopted by the Department of Health and Human Services in 2006 included provisions that allowed laboratories to provide EHR donations to physicians under certain conditions, the United States alleged that the Defendant violated those conditions. HHS withdrew those exemptions for laboratories in 2013.
“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources, because those relationships can alter a physician’s judgment about the patient’s true health care needs and drive up health care costs for everybody,” said Assistant Attorney General Joseph H. Hunt of the Justice Department’s Civil Division. “In addition to yielding a substantial recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
“Patients deserve the unfettered, independent judgment of their health care professionals. Offering financial incentives to physicians and medical practices in exchange for referrals undermines citizens’ trust in our health care system,” said U.S. Attorney Maria Chapa Lopez of the Middle District of Florida. “With this settlement, our Civil Division confirms its commitment to our nation’s critical struggle against practices that put public health programs at risk.”
“When health care providers are distracted by suspect financial arrangements, the interests of patients can be cast aside,” said Special Agent in Charge Derrick L. Jackson of HHS OIG. “Our agency, working closely with our law enforcement partners, will continue to protect patients and the federal health care programs that serve them.”
The allegations stem from three lawsuits that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the United States for false claims and share in any recovery. The whistleblowers’ share of the settlement announced today has not yet been determined.
The case was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Tennessee, the U.S. Attorney’s Office for the Middle District of Florida, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. The United States was represented by Justice Department Trial Attorneys David T. Cohen and Jonathan T. Thrope, and Assistant United States Attorneys Christopher C. Sabis and Michael Kenneth. The claims asserted are allegations only, and there has been no determination of liability.
The cases are captioned: United States ex rel. Dorsa v. Miraca Life Sciences, Inc., Case No. 13-cv-1025 (M.D. Tenn.); United States ex rel. LPF, LLC v. Miraca Life Sciences, Inc., et al., 3:16-cv-1355 (M.D. Tenn.); and United State ex rel. Heaphy, et al. v. Miraca Life Sciences, Inc., 3:18-cv-1027 (M.D. Tenn.).
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Pathology Laboratory Agrees to Pay $63.5 Million for Providing Illegal Inducements to Referring PhysiciansRead the Press Release
Tampa, FL – Pathology laboratory company Inform Diagnostics has agreed to pay $63.5 million to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today. Inform Diagnostics, formerly known as Miraca Life Sciences Inc., is headquartered in Irving, Texas, and was a subsidiary of Miraca Holdings Inc., a Japanese company, during the period relevant to the case. In 2017, majority ownership of the company changed, and the company was renamed.
“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources because those relationships can alter a physician’s judgment about the patient’s true health care needs and drive up health care costs for everybody,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “In addition to yielding a substantial recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
The settlement announced today resolves allegations that the company violated the Anti-Kickback Statute and the Stark Law by providing to referring physicians subsidies for electronic health records (EHR) systems and free or discounted technology consulting services. The Anti-Kickback Statute and the Stark Law restrict the financial relationships that health care providers, including laboratories, may have with doctors who refer patients to them. Although regulations adopted by the Department of Health and Human Services (HHS) in 2006 included provisions that allowed laboratories to provide EHR donations to physicians under certain conditions, the United States alleged that the defendant violated those conditions. HHS withdrew those exemptions for laboratories in 2013.
“The wellbeing and needs of the patient should always be a medical provider’s primary considerations,” said U.S. Attorney Don Cochran of the Middle District of Tennessee. “The restrictions imposed by federal statutes exist to prevent improper influence on the parties prescribing and providing medical services, including laboratory tests. We will continue to enforce the laws that protect the integrity of federal health care programs.”
“Patients deserve the unfettered, independent judgment of their health care professionals. Offering financial incentives to physicians and medical practices in exchange for referrals undermines citizens’ trust in our health care system,” said United States Attorney Maria Chapa Lopez of the Middle District of Florida. “With this settlement, our Civil Division confirms its commitment to our nation’s critical struggle against practices that put public health programs at risk.”
“When health care providers are distracted by suspect financial arrangements, the interests of patients can be cast aside,” said Special Agent in Charge Derrick L. Jackson of HHS OIG. “Our agency, working closely with our law enforcement partners, will continue to protect patients and the federal health care programs that serve them.”
The allegations stem from three lawsuits that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the United States for false claims and share in any recovery. The whistleblowers’ share of the settlement announced today has not yet been determined.
The case was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Tennessee, the U.S. Attorney’s Office for the Middle District of Florida, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. The claims asserted against Miraca are allegations only, and there has been no determination of liability.
The cases are captioned: United States ex rel. Dorsa v. Miraca Life Sciences, Inc., Case No. 13-cv-1025 (M.D. Tenn.); United States ex rel. LPF, LLC v. Miraca Life Sciences, Inc., et al., 3:16-cv-1355 (M.D. Tenn.); and United State ex rel. Heaphy, et al. v. Miraca Life Sciences, Inc., 3:18-cv-1027 (M.D. Tenn.).
Operator of Unlicensed Marijuana Distribution Business Pleads Guilty to Maintaining a Drug Involved Premises and Possession of Oxycodone and Marijuana with Intent to DistributeRead the Press Release
The operator of a Rainier Valley marijuana business pleaded guilty today in U.S. District Court in Seattle to two felonies: operating a drug involved premises, and possession of oxycodone and marijuana with intent to distribute, announced U.S. Attorney Brian T. Moran. KELED ALI, 28, of Seattle was arrested in October 2018, following an ATF and Seattle Police Department investigation of drug activity and gang related shootings near ‘One Stop,’ a marijuana distribution business in the 5300 block of Rainier Avenue South. Chief U.S. District Judge Ricardo S. Martinez scheduled sentencing for May 24, 2019.
According to records filed in the case, law enforcement became aware of gang activity related to the marijuana distribution business following a fatal shooting in December 2017 and a drive-by shooting in March 2018. ‘One Stop’ was not a licensed marijuana distributor under state or federal law. When undercover officers sought to investigate activities at the storefront, they were told marijuana could only be sold to customers introduced by other “members of their club.” On March 5, 2018, law enforcement executed a court authorized search warrant at the store. From a safe in the store officers recovered a 9 mm semi-automatic firearm, and they seized more than three pounds of marijuana from the store.
In October 2018, ALI was arrested after law enforcement observed him make numerous drug sales. In ALI’s car law enforcement found more than two pounds of marijuana and 45 oxycodone pills packaged for resale.
Maintaining a drug involved premises, and possession of marijuana and oxycodone with intent to distribute are both punishable by up to 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms &Explosives (ATF) and the Seattle Police Department. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Ohio man charged with attempting to provide material support to ISIS, attempting to commit a hate crime and possessing firearms for plot to attack Toledo-area synagogueRead the Press Release
A federal grand jury returned a three-count indictment charging an Ohio man with attempting to provide material support to ISIS, attempting to commit a hate crime, and possessing firearms in furtherance of a crime a violence stemming from his plan to attack in a synagogue in the Toledo area.
Damon M. Joseph, 21, also known as Abdullah Ali Yusuf, of Holland, Ohio, was arrested in December after he took possession of two semi-automatic rifles.
The announcement was made by Assistant Attorney General for National Security John C. Demers, Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S Attorney Justin E. Herdman for the Northern District of Ohio and Acting Special Agent in Charge Robert E. Hughes of the FBI’s Cleveland Division.
“This man allegedly spent months planning a violent terrorist attack on behalf of ISIS here in the United States, and targeted a Jewish synagogue in the Toledo area specifically because of the faith of the people who worship there,” said U.S. Attorney Herdman. “We will work to identify and arrest anyone who take steps to use violence to spread their ideology and to interfere with the free exercise of our essential rights.”
“In a matter of months, Damon Joseph allegedly progressed from radicalized, virtual jihadist to attack planner,” said Acting Special Agent in Charge Hughes. “He ultimately decided to target two Toledo-area synagogues for a mass-casualty attack in the name of ISIS. Joseph will now be accountable in a court of law for his pursuit of a violent act of terrorism upon our fellow citizens attending their desired house of worship.”
According to documents filed in court, Joseph drew the attention of law enforcement in 2018 by posting photographs of weapons and various messages in support of ISIS on his social media accounts, as well as a photograph originally distributed by the media wing of ISIS. This activity led to multiple interactions between Joseph and undercover FBI agents.
During his communication with undercover agents, Joseph stated his support for ISIS and produced propaganda in support of ISIS recruitment. In September, Joseph made videos that he sent to the undercover agent, hoping they would be used to recruit people to ISIS. He also complained that the mosque he attended was critical of ISIS.
Joseph stated his support for violent attacks and operations. For example, on Oct. 21, 2018,Joseph expressed support for “martyrdom operations” and stated: “what must be done, must be done” and “there are always casualties of war.”
On Oct. 30, Joseph and the undercover communicated regarding the mass shooting at a Jewish synagogue in Pittsburgh. Joseph stated: “I admire what the guy did with the shooting actually.” He added: “I can see myself carrying out this type of operation inshallah. They wouldn[’]t even expect [an attack] in my area...”
Over the next few weeks, Joseph continued stating he wanted to participate in an attack on behalf of ISIS. On Dec. 2 he forwarded a document that laid out his plans for an attack, using the name “Abdullah Ali Yusuf” for himself. In the document, he described plans to attack where the greatest number of people are gathered, inflict the most casualties during the attack and make sure no one escaped.
Joseph then stated that he did not see this necessarily as “a martyrdom operation” as his plan accounted for an escape and potential combat with law enforcement.
On Dec. 4, Joseph stated he was deciding between two synagogues in the area to attack. He stated the choice would depend on “Which one will have [the] most people, what time and what day. Go big or go home.”
The next day, Joseph met with an undercover FBI agent and discussed conducting a mass shooting at a synagogue. Joseph identified two synagogues he viewed as targets in the greater Toledo area, and discussed the types of weapons he believed would be able to inflict mass casualties.
Joseph made written notes about the firearms he wanted and provided them to the undercover agent, stating he wanted AR 15s, AK 47s, Glocks and ammunition.
On Dec. 6, Joseph met with an undercover agent in the Toledo area and stated it would be ideal to attack two synagogues, but that it was probably more realistic to only attack one. Joseph also stated specifically that he wanted to kill a rabbi.
Also on Dec. 6, Joseph wrote the name and address of the synagogue where the attack was to occur. Joseph stated he had conducted research to determine when the Jewish sabbath was so that more people would be present. Joseph pulled up photographs of the inside of the synagogue and said he wanted the attack to begin in the sanctuary. Joseph told the undercover agent that he would hide two semi-automatic rifles at his house once the undercover purchased them.
Later that day, the undercover agent told Joseph that he purchased rifles for the attack. The two met on Dec. 7 at a predetermined location and Joseph took a black duffel bag containing two semi-automatic rifles, which had been rendered inoperable by law enforcement officers so that they posed no danger to the public. Joseph was then arrested.
An indictment is only a charge, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Joint Terrorism Task Force, which is comprised of members of the FBI, Homeland Security and Investigations, U.S. Customs and Border Protection, Ohio State Highway Patrol and Toledo Police Department, is leading the ongoing investigation.
The case is being prosecuted by Assistant U.S. Attorney Michelle Baeppler of the Northern District of Ohio, Trial Attorneys Josh Champagne and Kyle Phillips of the National Security Division’s Counterterrorism Section, and Trial Attorney Dana Mulhauser of the Civil Rights Division.
Multi-Agency Drug Conspiracy Investigation Results in Prison Sentences for Seven Eastern Oklahoma DefendantsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced the sentencing of seven defendants as a result of a multi-agency investigation referred to as “Operation Kryptonite.” They were indicted on February 14, 2018, and were sentenced on various dates from September to December 2018 following their guilty pleas and the completion of pre-sentence reports for each.
Those sentenced were: Bethany Lynn Kendall, age 28, of McAlester; Steven Alan Phifer, age 40, of McAlester; Dylan Joseph Dempsey, age 25, of Fort Smith; Conway Lee Kindle, age 43, of Stuart; Dominic Alan Giaudrone, age 38, of Krebs; Dustin Lee Hall, a/k/a Smalls, age 31, of Savanna; and Angel Reanea Henderson, age 41, of Hartshorne.
Kendall was sentenced on November 21, 2018 to 210 months in prison and five years’ supervised release for Drug Conspiracy and Possession With Intent To Distribute Methamphetamine. Phifer was sentenced on December 6, 2018 to 84 months in prison and five years’ supervised release for Drug Conspiracy and Distribution of Methamphetamine. Dempsey was sentenced on November 15, 2018 to 151 months in prison and five years’ supervised release for Drug Conspiracy and Possession With Intent To Distribute Methamphetamine. Kindle was sentenced on October 16, 2018 to 133 months in prison and five years’ supervised release for Drug Conspiracy and Distribution of Methamphetamine. Giaudrone was sentenced on October 10, 2018 to 12 months in prison and two years’ supervised release for Drug Conspiracy. Hall was sentenced on September 13, 2018 to 120 months in prison and five years’ supervised release for Drug Conspiracy. Henderson was sentenced on September 11, 2018 to 48 months in prison and three years’ supervised release for Distribution of Methamphetamine.
Operation Kryptonite was an investigation initiated in May 2017 by the Drug Enforcement Administration (“DEA”) McAlester Resident Office (“MRO”) based on information received from the McAlester Police Department (“MPD”) and further developed by an MPD Task Force Officer assigned to the DEA MRO. The investigation involved controlled purchases of methamphetamine from Bethany Kendall and other members of the organization who were supplied pound quantities of methamphetamine from a source of supply in the Oklahoma City area. The investigation led to a court ordered intercept of Kendall’s communications. The investigation culminated in the indictment, arrest and successful prosecution of seven federal defendants prosecuted in the Eastern District of Oklahoma and six state defendants prosecuted by the Pittsburg County District Attorney’s Office.
The law enforcement agencies involved in the investigation were the Drug Enforcement Administration, the Oklahoma Bureau of Narcotics, the Bureau of Indian Affairs, the United States Marshal’s Service, the McAlester Police Department, the Pittsburg County Sheriff’s Office, the Seminole Nation Lighthorse Police, the Savanna Police Department, the District 18 Drug and Violent Crimes Task Force, and the U.S. Attorney’s Office. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
“Working with state, local, and tribal agencies to identify, disrupt and dismantle drug trafficking organizations is a priority of the Department of Justice. This investigation reflects that priority and could not have been accomplished without participation from all the agencies involved,” said United States Attorney Brian J. Kuester.
DEA Dallas Field Division Special Agent In Charge Clyde E. Shelley, Jr. said, “It’s a constant effort to keep our communities safe. This investigation was another example of multi-agency efforts in the state of Oklahoma resulting in large quantity seizures of methamphetamine and firearms. Our mission will always be getting the dangerous drugs and weapons off the streets.”
Sheriff Chris Morris said, “It is a constant battle to keep drug dealers off the streets, and it takes agencies working together to help make this happen. The Pittsburg County Sheriff's Office looks forward a continuing work relationship with all agencies. Great job to all involved.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over each of the sentencing hearings. The defendants will remain in custody pending transportation to the designated federal facility at which the non-parolable sentences will be served. Assistant United States Attorney Kristin Harrington represented the United States.
Mullens Family Clinic Doctor Pleads Guilty to Healthcare Fraud SchemeRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced that Dr. Manuel C. Barit, M.D., 71, of Raleigh County, and the only practicing physician at Mullens Family Clinic, pled guilty to executing a long-running healthcare fraud scheme. As part of the plea, Dr. Barit admitted that from about October 7, 2013 through January 24, 2018, he defrauded Medicare and Medicaid by submitting claims indicating that he treated patients at his clinic in Mullens on dates when he was outside the United States. As part of the plea, Dr. Barit agreed permanently surrender his West Virginia medical license as well as his Drug Enforcement Administration registration. By virtue of surrendering his license and registration, Dr. Barit will no longer be permitted to practice medicine or prescribe controlled substances in West Virginia. The Drug Enforcement Administration, the Department of Labor – Office of Inspector General (OIG) and the United States Postal Inspection Service conducted the investigation.
“This is a significant case for a number of reasons,” said United States Attorney Mike Stuart. “Dr. Barit has surrendered his medical license and his DEA registration. As a result, Dr. Barit will never practice medicine and will never write a prescription in West Virginia ever again. The pill pushers and drug dealers in lab coats have wreaked havoc and harm on our good citizens and we shall continue doing everything in our power to hold those responsible accountable.”
Dr. Barit faces up to 10 years in prison and a fine of up to $250,000 when he is sentenced on May 16, 2019. United States District Judge Irene C. Berger is presiding over the case.
This prosecution is the result of the formation of the Opioid Fraud Abuse and Detection Unit (OFADU), a Department of Justice initiative that uses data to identify and prosecute individuals that are contributors to the national opioid crisis. The Southern District of West Virginia is one of 12 districts nationally to participate in the pilot program.
Assistant United States Attorney Haley Bunn is handling the prosecution.
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Montgomery County Man Sentenced to 420 Years in Federal Prison for Production of Videos Documenting His Sexual Abuse of Three Girls Aged Two to Four Years OldRead the Press Release
Greenbelt, Maryland –U.S. District Judge Theodore D. Chuang today sentenced Kyle Stephen Thompson, age 33, of Burtonsville, Maryland, to 420 years in federal prison concurrent to the state sentence to be imposed, and lifetime supervised release for his conviction on 18 counts of production of child pornography, involving videos documenting Thompson’s sexual abuse of three young girls, aged 2 to 4. On September 13, 2018, the federal jury who heard the evidence during his three-day trial returned its guilty verdict on each of the 18 counts after deliberating less than 30 minutes.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
U.S. Attorney Robert K. Hur stated, “Kyle Thompson’s horrific sexual assaults on young girls would not have stopped without the work of the prosecutors, law enforcement agents, and witnesses in this case. Today’s sentence is a result of their efforts and ensures that Thompson will never be able to abuse a child again.”
According to the evidence presented at his trial and at today’s sentencing hearing, from May 9, 2015, to January 28, 2017, Thompson sexually assaulted three young girls, each of whom were between two and four years of age at the time of the abuse, in order to produce visual depictions documenting the abuse. Witnesses testified that on March 17, 2017, law enforcement executed a search warrant at Thompson’s residence and recovered a Secure Digital (SD) memory card hidden in the laundry room. During a preliminary on-scene forensic preview of the SD card, law enforcement saw a video depicting child pornography. According to trial testimony, subsequent forensic analysis of the SD card revealed 18 videos of Thompson sexually abusing the three young girls.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, Montgomery County Police Department, and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Kristi N. O’Malley, Joseph Baldwin, and Kelly O. Hayes, who prosecuted the federal case.
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Mineral County woman admits to drug distribution and firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Erica Lucinda Taylor, of Piedmont, West Virginia, has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
Taylor, age 30, pled guilty to one count of “Aiding and Abetting Distribution of Fentanyl.” Taylor admitted to selling fentanyl in February 2018 in Mineral County.
Taylor faces up to up to 20 years incarceration and a fine of up to $1,000,000. 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.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Lynn Man Pleads Guilty to Distributing Heroin and FentanylRead the Press Release
BOSTON – A Lynn man pleaded guilty yesterday in federal court in Boston to multiple drug charges associated with his distribution of heroin and fentanyl, which led to the 2017 overdose death of a Melrose resident.
Yeffry Reynoso, a/k/a Chris, 27, pleaded guilty to one count of conspiring to distribute at least 100 grams of heroin and at least 40 grams of fentanyl in 2016 and 2017. Reynoso also pleaded guilty to six counts of distributing heroin or fentanyl on various dates in 2017. U.S. District Judge Nathaniel M. Gorton scheduled sentencing for May 9, 2019.
According to court documents, Reynoso admitted that he sold and directed others to sell on his behalf small, retail quantities (typically approximately .25 to .30 grams in a plastic baggie) of heroin, heroin mixed with fentanyl, and/or fentanyl to numerous individuals in Lynn, Melrose, Saugus, Peabody, Malden, and the surrounding areas. Reynoso admitted that he sold the drugs to his customers on an almost daily basis and that he directed others who worked for him to deliver the drugs. Reynoso further admitted that he sold heroin and heroin mixed with fentanyl to a customer in Melrose after being told by her friend not to do so, and that the customer overdosed and died after using the drugs he provided.
Reynoso faces a mandatory minimum sentence of five years and up to 40 years in prison, supervised release for at least four years and up to life, and a fine of $5 million. Pursuant to the plea agreement, the parties will recommend to the Court a sentence of at least nine years but not more than 14 years in prison. Judge Gorton deferred acceptance of the plea agreement until the sentencing hearing.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. Assistant U.S. Attorney James E. Arnold of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Luzerne County Man Pleads Guilty to Distributing Heroin and FentanylRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey Abney, age 28, of Sugar Notch, Pennsylvania, pleaded guilty on January 10, 2019, before U.S. District Court Judge Malachy E. Mannion to distribution and possession with intent to distribute heroin and fentanyl.
According to United States Attorney David J. Freed, Abney admitted to distributing heroin and fentanyl in July 2018 in Luzerne County. Investigators made a number of purchases of packets containing heroin laced with fentanyl from Abney, and then obtained a search warrant for Abney’s residence in Sugar Notch, where additional amounts of heroin and fentanyl were found.
Judge Mannion ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms, who were assisted by the Kingston Police Department. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is 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 reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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.
The maximum penalty under federal law is up to 20 years’ imprisonment, 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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Lowell Man Pleads Guilty to Armed Bank RobberyRead the Press Release
BOSTON - A Lowell man pleaded guilty yesterday in federal court in Boston to a masked and armed bank robbery.
Jason M. Nobles, 37, pleaded guilty to one count of armed bank robbery. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 7, 2019. Nobles is currently in federal custody.
On Feb. 26, 2018, a masked individual, later identified as Nobles, entered a branch of the Santander Bank in Swansea, approached a teller’s station, brandished what appeared to be a black semi-automatic pistol, pointed the pistol at the bank’s tellers and demanded cash. Throughout the robbery, Nobles pointed the weapon at the tellers ordering them to hurry up and threatening to shoot them. The tellers handed Nobles cash from their drawers, and Nobles fled the bank. A post robbery audit determined that Nobles stole approximately $15,000.
Bank employees witnessed Nobles depart the bank, run to a neighboring parking lot, and leave the area in a gray Toyota SUV. The employees were able to provide law enforcement with a vehicle description and the physical description of the robber. Law enforcement across multiple towns worked together to locate the Toyota SUV, stop it, and detain the driver - Nobles - who matched the description of the robber given by the bank’s employees. Later, when law enforcement executed a search of the vehicle, they found a large sum of money and a black Sig Sauer semi-automatic pellet gun.
The charge provides for a sentence of no greater than 25 years in prison and five years of supervised release. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Bristol County District Attorney Thomas M. Quinn; Swansea Police Chief George Arruda; and Rehoboth Police Chief James J. Trombetta made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Lori Isenberg Pleads Guilty to over $570,000 in Wire Fraud and Federal Program TheftRead the Press Release
COEUR D’ALENE – Laurecene (Lori) Barnes Isenberg, 65, of Coeur d’Alene, pleaded guilty yesterday to three counts of wire fraud and one count of theft from a federal program, U.S. Attorney Bart M. Davis announced. Isenberg’s sentencing is set for April 30, 2019, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
According to court records, Isenberg admitted to stealing $579,495.75 from the North Idaho Housing Coalition, an organization that was funded, in part, with grants from the U.S. Department of Housing and Urban Development administered through the Idaho Housing and Finance Association. Isenberg was the Coalition’s executive director when she engaged in a scheme with her four daughters to submit false invoices and expenses to the Coalition for payment. These invoices were often submitted in the names of companies she set up in her daughters’ names. Isenberg provided her daughters with some of the money she took.
Two of Isenberg’s daughters, Amber Hosking, 40, of Spirit Lake, Idaho, and Jessica Barnes, 32, of Spokane Valley, Washington, were sentenced yesterday by Judge Lodge for conspiracy to commit federal program fraud. The criminal charge stemmed from their participation in the wire fraud and federal program theft scheme with Isenberg. Hosking admitted receiving $16,500 from the scheme. Jessica Barnes admitted receiving $15,500 from the scheme. Both women admitted they received money for work they did not do. Judge Lodge sentenced Hosking and Barnes each to three years’ probation and 100 hours of community service. Judge Lodge also ordered Hosking and Barnes to pay $16,500 and $15,500 in restitution, respectively. Their sentencings occurred at the federal courthouse in Coeur d’Alene.
Isenberg’s other two daughters, Tracy Tesch, 34, of Rathdrum, Idaho, and April Barnes, 42, of Coeur d’Alene, pleaded guilty to conspiracy to commit program theft earlier today. That criminal charge stemmed from their participation in the wire fraud and federal program theft scheme with Isenberg. Tesch admitted to receiving approximately $15,300 from the scheme. April Barnes admitted to receiving about $11,500 from the scheme. Sentencing for both Barnes and Tesch is set for May 1, 2019, before Judge Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by the Federal Bureau of Investigation and the Coeur d’Alene City Police Department.
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Local 98 Leader John Dougherty, Philadelphia City Councilman Robert Henon, and Six Others Charged in 116-Count Public Corruption IndictmentRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced today that a grand jury returned a 116-count Indictment, charging Local 98 of the International Brotherhood of Electrical Workers (“Local 98”) Business Manager John Dougherty, Philadelphia City Councilman Robert Henon, Local 98 employees Brian Burrows, Michael Neill, Marita Crawford, Niko Rodriguez, Brian Fiocca, and local business owner Anthony Massa with a multitude of federal crimes, including embezzlement, wire fraud, and public corruption offenses.
John Dougherty, 58, of Philadelphia, has been charged with one count of conspiracy to embezzle from a labor union and employee benefit plan; 34 counts of embezzlement and theft of labor union assets; 23 counts of wire fraud thefts from Local 98; two counts of wire fraud thefts from a political action committee; two counts of falsification of annual financial reports filed by a labor union; two counts of falsification of financial records required to be kept by a labor union; five counts of filing false federal income tax returns; one count of conspiracy to accept unlawful payments from an employer; eight counts of accepting unlawful payments from a union contractor; one count of conspiracy to commit honest services fraud and federal program bribery; 11 counts of honest services wire fraud; and one count of honest services mail fraud.
Philadelphia City Councilman Robert Henon, 50, of Philadelphia, has been charged with one count of conspiracy to commit honest services fraud and federal program bribery; 14 counts of honest services wire fraud; one count of honest services mail fraud; and four counts of federal program bribery.
Brian Burrows, 58, of Mount Laurel, NJ, served as the President of Local 98. He has been charged with one count of conspiracy to embezzle from a labor union and employee benefit plan; 14 counts of embezzlement and theft of labor union assets; two counts of falsification of annual financial reports filed by a labor union; two counts of falsification of financial records required to be kept by a labor union; and five counts of filing false federal income tax returns.
Michael Neill, 52, of Philadelphia, served as the Training Director of Local 98’s Apprentice Training Fund. He has been charged with one count of conspiracy to embezzle from a labor union and employee benefit plan; four counts of embezzlement and theft of labor union assets; one count of theft from an employee benefit plan; and four counts of filing false federal income tax returns.
Marita Crawford, 49, of Philadelphia, served as a Local 98 business agent and Political Director. She has been charged with one count of conspiracy to embezzle from a labor union and employee benefit plan; four counts of embezzlement and theft of labor union assets; three counts of wire fraud thefts from Local 98; two counts of wire fraud thefts from a political action committee; one count of falsification of an annual financial report filed by a labor union; and one count of falsification of financial records required to be kept by a labor union.
Niko Rodriguez, 27, of Philadelphia, was a Local 98 employee and Apprentice Training Fund employee. He has been charged with one count of conspiracy to embezzle from a labor union and employee benefit plan; six counts of embezzlement and theft of labor union assets; and six counts of wire fraud thefts from Local 98.
Brian Fiocca, 27, of Philadelphia, was a Local 98 employee. He has been charged with one count of conspiracy to embezzle from a labor union and employee benefit plan; five counts of embezzlement and theft of labor union assets; and five counts of wire fraud thefts from Local 98.
Anthony Massa, 65, of Philadelphia, was the owner and operator of Massa Construction. He has been charged with one count of conspiracy to embezzle from a labor union and employee benefit plan; 14 counts of embezzlement and theft of labor union assets; one count of theft from an employee benefit plan; and one count of making false statements to the FBI.
From April 2010 through August 2016, in Philadelphia, the Indictment alleges that Dougherty, Burrows, Neill, Crawford, Rodriguez, Fiocca, and Massa conspired and agreed to embezzle Local 98 funds for their own personal use and the use of their family members, friends, and commercial businesses.
The Indictment charges that the defendants used union funds for personal and other unauthorized expenses, contrary to the provisions of the IBEW constitution, the by-laws of Local 98, and the beneficial interests of the members of Local 98. They also used these funds in violation of federal law. The Indictment continues that they used funds and assets of the Apprentice Training Fund for personal and other unauthorized expenses, contrary to the provisions of the Apprentice Training Fund’s trust agreement and ERISA. Additionally, the Indictment states that the defendants concealed the unlawful use of the funds and assets of Local 98 and the Apprentice Training Fund by falsely representing that the funds were being used for legitimate, business-related expenses.
The Indictment further charges Dougherty and Henon with multiple public corruption charges. The Indictment alleges that Dougherty and Henon defrauded the City of Philadelphia and its citizens of the right to Henon’s honest services as a member of City Council. According to the Indictment, Henon received a salary and other things of value from Dougherty and, in exchange, Henon used his position as a member of City Council to serve Dougherty’s interests.
“Union leaders and public officials have similar duties in our society,” said First Assistant U.S. Attorney Williams. “Whether it is a fiduciary duty to the union’s membership to spend union funds on union business, or a public official’s duty to provide honest services to his constituents, leaders in these kinds of roles must act in the best interests of others. They cannot use their public positions and influence to enrich themselves. If they do, it is a violation of their duties and of federal law.”
“When union leaders misdirect the organization’s money for personal gain, they’re breaching their obligation to members – and breaking the law,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Such corruption must not go unchecked. No matter how long it takes, the FBI and our partners will investigate and work to hold accountable unscrupulous union and public officials.”
“Union officials who are elected to positions of trust have a responsibility to their members and organizations,” stated IRS Special Agent in Charge Guy Ficco. “That trust is broken when these officials serve to enrich themselves at the expense of their members. No public official gets a free pass to ignore the tax laws, and IRS CI will continue to ensure that everyone pays their fair share.”
“Investigating corruption and ensuring financial integrity in labor organizations is a major priority for the U.S. Department of Labor’s Office of Labor-Management Standards. We will continue to work with our investigative partners to ensure that those who are affiliated with labor organizations adhere to the highest standards of conduct to protect the assets of union members,” said OLMS Northeastern Regional Director Andriana Vamvakas.
“Protecting the security of retirement, health, and other workplace-related benefits for the American workforce and their families is the objective of the U.S. Department of Labor – Employee Benefits Security Administration (EBSA). Our agency vigorously enforces the laws of the United States by using our criminal enforcement program to pursue violators of criminal laws protecting private employee benefit plans. Our agency works closely with other law enforcement agencies as well as federal and state prosecutors to pursue criminal actors who victimize these plans.” said EBSA Philadelphia Regional Director Michael Schloss.
“An important mission of the Office of Inspector General is to investigate allegations relating to labor racketeering and corruption in employee benefit plans,” stated Richard Deer, Special Agent in Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General. “We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Employee Benefits Security Administration to investigate these types of allegations.”
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Labor Office of Labor Management Standards, the U.S. Department of Labor Office of Inspector General, and the Pennsylvania State Police, with assistance from the Pennsylvania Attorney General’s Office. It is being prosecuted by Assistant United States Attorneys Richard P. Barrett, Chief of the Corruption, Tax and Labor Racketeering Unit, Frank Costello, John Gallagher, and Paul Gray.
An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Libby woman admits tax evasionRead the Press Release
MISSOULA – A Libby woman admitted in federal court today to evading income taxes for two years while she was serving as the financial caretaker for an individual who was unable to care for herself, U.S. Attorney Kurt Alme said.
Candace Cummings, 65, pleaded guilty to tax evasion during a hearing before U.S. Magistrate Judge Jeremiah C. Lynch. Judge Lynch will recommend Cummings’ plea be accepted by U.S. District Judge Dana L. Christensen, who is presiding in the case.
Cummings faces a maximum five years in prison, a $100,000 fine and three years of supervised release. She was released pending sentencing, which was set for May 16.
Prosecutors said the evidence would show that Cummings failed to report income of about $140,188 in 2012, which produced a tax loss of $35,096, and income of about $52,500 in 2013, which produced a tax loss of $13,420.
In late 2011, Cummings agreed to become the financial caretaker for a person who was unable to care for herself. Adult Protective Services assigned a power of attorney to Cummings on the individual’s behalf. APS told Cummings she needed to keep track of receipts for expenses she paid for the individual, and Cummings agreed to serve as a fiduciary without compensation.
In 2012 and 2013, Cummings used the individual’s money for personal expenses and failed to report the money as income on her own tax returns. In one instance, Cummings sold three of the individual’s savings bonds, worth $24,804. She deposited $10,804 into the individual’s account and bought a cashier’s check in her name for $10,000, which she deposited into her own bank account. Cummings received the remaining $4,000 in cash.
Cummings also sold three more savings bonds, worth $16,408. She received a cashier’s check in her name for $6,000, which she later deposited into her bank account, and the remaining $10,408 in cash.
In 2013, after several suspicious transactions involving the individual’s certificates of deposit and savings bonds, the bank contacted APS and local law enforcement. APS revoked Cummings’ power of attorney based on the suspicious activity.
Assistant U.S. Attorney Timothy Racicot is prosecuting case, which was investigated by the IRS’s Criminal Investigation Division.
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Lexington Man Sentenced to 188 Months for Conspiracy to Distribute Cocaine and Money LaunderingRead the Press Release
LEXINGTON, Ky. — Eric D. James, 32, of Lexington, was sentenced yesterday to 188 months in federal prison, by United States District Judge Danny C. Reeves, for conspiracy to distribute more than five kilograms of cocaine and money laundering. Reeves also ordered James to pay a fine of $2,000 and ordered the forfeiture of his interest in $586,369 in cash.
James previously admitted that, in early January 2017, he engaged in a conspiracy to obtain large quantities of cocaine from the southwest United States. Shipments of these drugs were made by passenger vehicle, with the drugs concealed in various compartments within the vehicles. The drugs were then transported to Lexington. The proceeds from the distribution of these drugs were returned to the source. On May 18, 2017, the Lexington Police stopped a vehicle carrying approximately 6 kilograms of cocaine. On June 12, 2017, a search warrant was executed at the residence of James’ co-defendant, Ansar McIver. Law enforcement seized a quantity of cocaine and approximately $586,369, which were proceeds from the drug distribution.
James had previously been convicted of a drug trafficking felony, in Indiana, and Possession of Cocaine, in Kentucky. James was on parole for drug trafficking at the time he committed these offenses. James pleaded guilty in September 2018.
Under federal law, James must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for ten years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James (Robert) Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; Richard Sanders, Commissioner of the Kentucky State Police; and Chief Lawrence Weathers, of Lexington Police Department, jointly made the announcement.
The investigation was conducted by the FBI (Lexington and San Diego), the Kentucky State Police, and the Lexington Police Department. The United States was represented by Assistant United States Attorney Roger W. West.
Levant Man Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Damian A. Ouellette, 26, of Levant, Maine pleaded guilty today to being a felon in possession of a firearm.
According to court records, on November 2, 2018, deputies responded to a report of domestic violence at the defendant’s Levant residence where they recovered a 9mm pistol that he hid in a bin of clothes in his bedroom. The defendant was prohibited from possessing the firearm because he had three prior felony convictions for robbery and/or theft.
He faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Penobscot County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Lawrence Man Pleads Guilty to Distributing Child PornographyRead the Press Release
KANSAS CITY, KAN. – A Lawrence man pleaded guilty to a federal charge of distributing child pornography, U.S. Attorney Stephen McAllister said today.
Brian Fuchs, 49, Lawrence, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted investigators found approximately 2,000 images and 200 videos containing child pornography on his computer.
The FBI used an internet peer-to-peer file sharing program to download child pornography from Fuchs before serving a search warrant at his home.
Fuchs agreed in his plea to pay $20,000 restitution to the victims.
Sentencing is set for April 22. He faces a penalty of not less than five years, not more than 20 years and a fine up to $250,000.
McAllister commended the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Lamont Evans, Former Division I Men’s Basketball Coach, Pleads Guilty to Bribery in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that LAMONT EVANS, a former men’s basketball coach at the University of South Carolina (“South Carolina”) and later at Oklahoma State University (“OSU”), pled guilty in Manhattan federal court today to taking approximately $22,000 in cash bribes from athlete advisers in exchange for using his influence over South Carolina and OSU basketball players to retain the services of the advisers paying the bribes. EVANS pled guilty before U.S. District Judge Edgardo Ramos.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Lamont Evans, formerly a men’s basketball coach at South Carolina and Oklahoma State, abused his position as a mentor and coach for personal gain. Evans took bribes from unscrupulous agents and financial advisers to steer his players to those agents and advisers. A scheme Evans apparently thought was a slam-dunk actually proved to be a flagrant foul.”
According to the Complaint, the Indictment, statements made in court, and publicly available documents:
EVANS was a men’s basketball coach at South Carolina until on or about April 2016, and then at OSU until shortly after his arrest. Beginning in 2016, and continuing into September 2017, when EVANS was arrested, EVANS received approximately $22,000 in cash bribes from current and aspiring financial advisers and/or managers for professional athletes in exchange for EVANS’s agreement to exert his influence over certain student-athletes EVANS coached at South Carolina and OSU to retain the services of the bribe payers once those players entered the National Basketball Association (“NBA”).
In one meeting recorded during the investigation, Evans explained how “every guy I recruit and get is my personal kid,” and that “the parents believe in me and what I do … that’s why I say, if I need X, so if I do take X for that, it’s going to generate [business] toward you guys,” referring to the bribers. Evans also stated in a call recorded during the investigation how this arrangement was “generating more wealth” for the scheme participants, because they were “able to scratch my back, scratch yours, and help each other with different things and . . . at the same time get compensated and then . . . just go from there.” In return for the cash bribes EVANS received, EVANS facilitated a meeting between the bribe payers and a player at OSU, and a meeting between the bribe payers and a relative of a different player attending South Carolina, for the purpose of pressuring those players to retain the financial services of the bribe payers.
In addition to today’s plea, Emanuel Richardson, a/k/a “Book,” a former men’s basketball coach at the University of Arizona, and Anthony Bland, a/k/a “Tony,” a former men’s basketball coach at the University of Southern California, both previously pled guilty, pursuant to plea agreements with the Government, in connection with this scheme. Munish Sood, a financial adviser, also previously pled guilty, pursuant to a cooperation agreement with the Government, in connection with this scheme.
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EVANS, 41, of Stillwater, Oklahoma, pled guilty to one count of conspiracy to commit bribery. As a condition of his plea, EVANS agreed to forfeit $22,000. The charge carries a maximum term of five 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 the judge. Sentencing is scheduled for May 10, 2019, before Judge Ramos.
Mr. Berman praised the work of the Federal Bureau of Investigation and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Robert Boone, Noah Solowiejczyk, and Eli J. Mark are in charge of the prosecution.
Lab Owner Ordered to Pay $544,000 for Environmental ViolationRead the Press Release
KANSAS CITY, KAN. – The owner of the now-closed Beta Chem Laboratory in Lenexa has been ordered to pay $544,287 in restitution for storing hazardous waste without a license, U.S. Attorney Stephen McAllister said.
Ahmed El-Sherif, 63, Leawood, Kan., was found guilty in a bench trial of storing hazardous waste without a license. El-Sherif started Beta Chem in the mid-1990s, which he owned and operated. On October 4, 2013, after issuing an Emergency Order to Seize and Secure Radioactive Materials, KDHE took control of Beta Chem and secured the facility.
The Criminal Investigation Division of Environmental Protection Agency executed a search warrant at Beta Chem on Jan. 22, 2014, where agents discovered numerous containers containing hazardous wastes and contaminated with radiation.
During trial, U.S. District Court Judge Julie A. Robinson found that by 2012 Beta Chem had become a defunct operation and hazardous chemicals were being stored at the facility in lieu of a thorough decommissioning and decontamination process.
Robinson found El-Sherif not guilty on a charge of obstructing a federal investigation.
El-Sherif will serve two years on federal probation.
McAllister commended the EPA Criminal Investigation Division and the Environmental Crimes Section of the Department of Justice for their work on the case.
Kanawha County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. -- A Kanawha County man pled guilty to a federal drug crime, announced United States Attorney Mike Stuart. Douglas Matthew Spry, 42, entered his guilty plea to possession with the intent to distribute over 50 grams of methamphetamine. The investigation was conducted by the Nitro Police Department, with assistance from the United States Department of Homeland Security.
“Digital scales, a large amount of United States currency, and 70.41 grams of methamphetamine in the glove box,” said United States Attorney Mike Stuart. “Methamphetamine is wreaking havoc on the good people of West Virginia. Drug dealers bring pain to their victims and great harm to our communities.”
Spry admitted that on December 10, 2017, his vehicle was the subject of a traffic stop near Nitro, West Virginia. An officer with the Nitro Police Department could smell burnt marijuana emanating from the vehicle. During a search of the vehicle, officers located digital scales, a large amount of United States currency, and 70.41 grams of methamphetamine in the glove box. During the traffic stop, Spry denied knowledge of the methamphetamine but informed the officer that his fingerprints would likely be on the bag. At the plea hearing, Spry admitted that he intended to sell the methamphetamine.
Spry faces up to life in federal prison when he is sentenced in June 2019. United States District Judge David A. Faber presided over the plea hearing. Assistant United States Attorney Ryan A. Saunders is handling the prosecution.
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###KC Woman Sentenced to 13 Years for Leading Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., woman was sentenced in federal court today for her role in leading a large methamphetamine conspiracy.
Yadieras Y. Contreras, also known as “Fajita,” 36, was sentenced by U.S. District Judge Greg Kays to 13 years and nine months in federal prison without parole.
Contreras was the third defendant in this case to be sentenced this month. Co-defendant David F. Bushdiecker,47, was sentenced on Jan. 24, 2019, to 20 years and five months in federal prison without parole. Co-defendant Benjamin H. McDaniel, also known as “Cowboy,” 56, was sentenced on Jan. 4, 2019, to 14 years in federal prison without parole. Additionally, nine co-defendants in this case have been sentenced and three more have pleaded guilty and await sentencing.
On Feb. 9, 2018, Contreras pleaded guilty to participating in a conspiracy to distribute methamphetamine. Contreras admitted that she sold more than 40 kilograms of methamphetamine to McDaniel from 2014 to April 2015. McDaniel then distributed methamphetamine to others.
Contreras also admitted that she sold methamphetamine to co-defendant Troy C. Hudson, 50, of Belton, Mo. Hudson delivered drugs to Contreras and collected the proceeds of drug trafficking. Hudson also transported a large amount of cash (the proceeds of drug trafficking) to Arizona. Hudson was sentenced on Nov. 16, 2018, to eight years and two months in federal prison without parole.
Contreras also received methamphetamine from Roberto W. Duran, also known as “Muchacho,” 37, a citizen of El Salvador who resided in Phoenix, Ariz. He delivered approximately 10 pounds of methamphetamine at a time to Contreras’s residence or to a garage behind a pizza restaurant in Raytown, Mo. The methamphetamine was hidden in various vehicles and removed once it arrived. Contreras paid the drivers for methamphetamine they had previously delivered, and those proceeds were then transported back to Arizona. Duran was sentenced on June 28, 2018, to 14 years and seven months in federal prison without parole.
Contreras was allowed to use the Raytown garage by the garage’s renter, co-defendant Aaron R. Plowman, 41, of Eldon, Mo. On four occasions, Plowman permitted Contreras to use the garage to receive methamphetamine shipments from her Arizona supplier. In exchange for the use of the garage space, Contreras fronted about one pound of methamphetamine to Plowman on each occasion. Plowman was sentenced on July 30, 2018, to 10 years and eight months in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Kansas City, Mo., Police Department; the Jackson County Drug Task Force; the Drug Enforcement Administration; Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI); the Independence, Mo., Police Department; the Lee’s Summit, Mo., Police Department; and the Raytown, Mo., Police Department.
Justice Department Announces Court-Authorized Efforts to Map and Disrupt Botnet Used by North Korean HackersRead the Press Release
The Justice Department today announced an extensive effort to map and further disrupt, through victim notifications, the Joanap botnet – a global network of numerous infected computers under the control of North Korean hackers that was used to facilitate other malicious cyber activities. This effort targeting the Joanap botnet follows charges unsealed last year in which the United States charged a North Korean citizen, Park Jin Hyok, a member of a conspiracy backed by the North Korean government that carried out numerous computer intrusions. Those charges alleged that the conspiracy utilized a strain of malware, “Brambul,” which was also used to propagate the Joanap botnet.
Assistant Attorney General for National Security John Demers, United States Attorney Nicola T. Hanna, Assistant Director in Charge (ADIC) Paul Delacourt of the FBI’s Los Angeles Field Office and the U.S. Air Force Office of Special Investigations made the announcement.
“Computers around the world remain infected by a botnet associated with the North Korean Regime,” said Assistant Attorney General Demers. “Through this operation, we are working to eradicate the threat that North Korea state hackers pose to the confidentiality, integrity, and availability of data. This operation is another example of the Justice Department’s efforts to use every tool at our disposal to disrupt national security threat actors, including, but by no means limited to, prosecution.”
“Our efforts have disrupted state-sponsored cybercriminals who used malware to establish a computer network that gave them the ability to hack into other computer systems,” said U.S. Attorney Hanna. “While the Joanap botnet was identified years ago and can be defeated with antivirus software, we identified numerous unprotected computers that hosted the malware underlying the botnet. The search warrants and court orders announced today as part of our efforts to eradicate this botnet are just one of the many tools we will use to prevent cybercriminals from using botnets to stage damaging computer intrusions.”
“Through technical means and legal process, the FBI continually seeks to disrupt the malicious cyber activities of North Korean cybercriminals, as in this case, and all cyber actors who pose a threat to the United States and our international partners,” said ADIC Delacourt. “We urge computer users to take precautions, such as updating their software and utilizing antivirus, in order to avoid being victimized by this type of malware.”
Joanap malware targeted computers running the Microsoft Windows operating system and is used to gain access to and maintain infrastructure from which the hackers can carry out other malicious cyber activities. Joanap is a “second stage” malware, one that is often “dropped” by the automated Brambul “worm” that crawls from computer to computer, probing whether it can gain access using certain vulnerabilities. Once installed on an infected computer, Joanap would allow the North Korean hackers to remotely access infected computers, gain root level (or near-total) access to infected computers, and load additional malware onto infected computers.
Computers infected with Joanap — known as “peers” or “bots” — became part of a network of compromised computers known as a botnet. Like other botnets, Joanap was designed to operate automatically and undetected on victims’ computers. Joanap uses a decentralized peer-to-peer communication system, rather than a centralized mechanism to communicate with and control the peers, such as a command-and-control domain.
In order to address that distinct feature, a court order and search warrant was obtained pursuant to recent amendments to Rule 41 of the Federal Rules of Criminal Procedure. The search warrant allowed the FBI and AFOSI to operate servers that mimicked peers in the botnet. By pretending to be infected peers, the computers operated by the FBI and AFOSI under the authority of the search warrant and order collected limited identifying and technical information about other peers infected with Joanap (i.e., IP addresses, port numbers, and connection timestamps). This allowed the FBI and AFOSI to build a map of the current Joanap botnet of infected computers. Copies of the search warrants and orders and applications are available below.
Using the information obtained from the warrant, the government is notifying victims in the United States of the presence of Joanap on an infected computer. The FBI is both notifying victims through their Internet Service Providers and providing personal notification to victims whose computers are not behind a router or a firewall. The U.S. government will coordinate the notification of foreign victims by contacting the host country’s government, including by utilizing the FBI’s Legal Attachés.
The second-stage Joanap botnet and the first-stage Brambul worm have endured since 2009, even though they have been identified in the past and a number of antivirus products defend against them. Many private cyber security research companies have also published analytical reports about Brambul and Joanap. The FBI and the Department of Homeland Security have published reports analyzing Joanap and Brambul as well, including as recently as May 31, 2018. (https://www.us-cert.gov/ncas/alerts/TA18-149A.) Moreover, a complaint was filed on June 8, 2018, charging Park Jin Hyok with a conspiracy to carry out numerous computer intrusions backed by the North Korean government. That complaint alleged how co-conspirators used Brambul to gain unauthorized access to computers, and then used those computers to carry out the charged malicious cyber activities. The Brambul worm itself was recovered from the computer networks of some victims of the conspiracy.
Joanap targets Microsoft Windows operating systems, but running Windows Defender Antivirus and using Windows Update will remediate and prevent infections by Joanap. A number of free and paid antivirus programs are also already capable of detecting and removing Joanap and Brambul, including the Microsoft Safety Scanner, a free product.
This effort to map and disrupt the botnet was led by Assistant United States Attorneys Anthony J. Lewis and Anil J. Antony of the United States Attorney’s Office for the Central District of California, and DOJ Trial Attorneys David Aaron and Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section. The Criminal Division’s Computer Crime and Intellectual Property Section provided valuable assistance.
The details contained in the application for the search warrant and order and related pleadings are not charges and are merely accusations.
Justice Department Announces Court-Authorized Efforts to Map and Disrupt Botnet Used by North Korean HackersRead the Press Release
LOS ANGELES – The Justice Department today announced an extensive effort to map and further disrupt, through victim notifications, the Joanap botnet – a global network of numerous infected computers under the control of North Korean hackers that was used to facilitate other malicious cyber activities. This effort targeting the Joanap botnet follows charges unsealed last year in which the United States charged a North Korean citizen, Park Jin Hyok, a member of a conspiracy backed by the North Korean government that carried out numerous computer intrusions. Those charges alleged that the conspiracy utilized a strain of malware, “Brambul,” which was also used to propagate the Joanap botnet.
United States Attorney Nicola T. Hanna, Assistant Attorney General for National Security John Demers, Assistant Director in Charge (ADIC) Paul Delacourt of the FBI’s Los Angeles Field Office, and the U.S. Air Force Office of Special Investigations (AFOSI) made the announcement.
“Our efforts have disrupted state-sponsored cybercriminals who used malware to establish a computer network that gave them the ability to hack into other computer systems,” said United States Attorney Nick Hanna. “While the Joanap botnet was identified years ago and can be defeated with antivirus software, we identified numerous unprotected computers that hosted the malware underlying the botnet. The search warrants and court orders announced today as part of our efforts to eradicate this botnet are just one of the many tools we will use to prevent cybercriminals from using botnets to stage damaging computer intrusions.”
“Computers around the world remain infected by a botnet associated with the North Korean Regime,” said Assistant Attorney General John Demers. “Through this operation, we are working to eradicate the threat that North Korea state hackers pose to the confidentiality, integrity, and availability of data. This operation is another example of the Justice Department’s efforts to use every tool at our disposal to disrupt national security threat actors, including, but by no means limited to, prosecution.”
“Through technical means and legal process, the FBI continually seeks to disrupt the malicious cyber activities of North Korean cybercriminals, as in this case, and all cyber actors who pose a threat to the United States and our international partners,” said ADIC Paul Delacourt. “We urge computer users to take precautions, such as updating their software and utilizing antivirus, in order to avoid being victimized by this type of malware.”
Joanap malware targeted computers running the Microsoft Windows operating system and is used to gain access to and maintain infrastructure from which the hackers can carry out other malicious cyber activities. Joanap is a “second stage” malware, one that is often “dropped” by the automated Brambul “worm” that crawls from computer to computer, probing whether it can gain access using certain vulnerabilities. Once installed on an infected computer, Joanap would allow the North Korean hackers to remotely access infected computers, gain root level (or near-total) access to infected computers, and load additional malware onto infected computers.
Computers infected with Joanap – known as “peers” or “bots” – became part of a network of compromised computers known as a botnet. Like other botnets, Joanap was designed to operate automatically and undetected on victims’ computers. Joanap uses a decentralized peer-to-peer communication system, rather than a centralized mechanism to communicate with and control the peers.
In order to address that distinct feature, court orders and search warrants were obtained pursuant to recent amendments to Rule 41 of the Federal Rules of Criminal Procedure. The search warrant allowed the FBI and AFOSI to operate servers that mimicked peers in the botnet. By pretending to be infected peers, the computers operated by the FBI and AFOSI under the authority of the search warrant and order collected limited identifying and technical information about other peers infected with Joanap (for example, IP addresses, port numbers, and connection timestamps). This allowed the FBI and AFOSI to build a map of the current Joanap botnet of infected computers.
Using the information obtained from the warrants, the government is notifying victims in the United States of the presence of Joanap on an infected computer. The FBI is both notifying victims through their Internet Service Providers and providing personal notification to victims whose computers are not behind a router or a firewall. The U.S. government will coordinate the notification of foreign victims by contacting the host country’s government, including by utilizing the FBI’s Legal Attachés.
The second-stage Joanap botnet and the first-stage Brambul worm have endured since 2009, even though they have been identified in the past and a number of antivirus products defend against them. Many private cyber security research companies have published analytical reports about Brambul and Joanap. The FBI and the Department of Homeland Security also have published reports analyzing Joanap and Brambul as well, including a Technical Alert last May.
A criminal complaint filed last year charges Park Jin Hyok with being a member of a conspiracy backed by the North Korean government that carried out numerous computer intrusions. That complaint alleged how co-conspirators used Brambul to gain unauthorized access to computers, and then used those computers to carry out their malicious cyber activities. The Brambul worm itself was recovered from the computer networks of some victims of the conspiracy.
Joanap targets Microsoft Windows operating systems, but running Windows Defender Antivirus and using Windows Update will remediate and prevent infections by Joanap. A number of free and paid antivirus programs are also already capable of detecting and removing Joanap and Brambul, including the Microsoft Safety Scanner, a free product.
This effort to map and disrupt the botnet was led by Assistant United States Attorneys Anthony J. Lewis and Anil J. Antony, and Justice Department Trial Attorneys David Aaron and Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section. The Criminal Division’s Computer Crime and Intellectual Property Section provided valuable assistance.
The details contained in the application for the search warrant and order and related pleadings are not charges and are merely accusations.
Government's Ex Parte Application for Botnet Search Warrant Botnet Warrant & OrderJudge Denies Bond for Defendant Charged in Renasant Bank RobberyRead the Press Release
ALBANY – The man charged with holding up an Albany bank at gunpoint has been denied bond today by a Federal Magistrate Judge, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Shataz Hampton, 25, of Albany is charged with one count of Bank Robbery and one count of Possession of a Firearm, along with co-defendant Kamilyah Whitlock, 25, of Albany. The two defendants are charged in the armed robbery of the Renasant Bank at 721 N. Westover Blvd., Albany, GA on November 6, 2017. The Honorable Thomas Langstaff, U.S. District Magistrate Court, detained Mr. Hampton on January 30, 2019 until trial. No date has been set.
“I am pleased the Court granted our motion to detain Mr. Hampton, a man alleged to have brandished a gun and robbed a bank in broad daylight, with innocent customers and employees inside,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Rest assured, we will prosecute those accused of violent acts to the fullest extent of the law, and we will continue to vigorously seek the highest level of punishment for people who commit the most egregious crimes.”
The case was investigated by the Albany Police Department and the FBI. Assistant U.S. Attorney Leah McEwen is prosecuting the case for the Government.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Jersey City Man Sentenced to 37 Months in Prison for Scamming Investors of $3.4 MillionRead the Press Release
NEWARK, N.J. – A Jersey City man was sentenced today to 37 months in prison for swindling two investors of $3.4 million by falsely representing that his businesses had secured lucrative contracts to sell olive oil to major retailers, U.S. Attorney Craig Carpenito announced.
Antonio Fasolino, 62, previously pleaded guilty before U.S. District Judge Michael Vazquez to all four counts of indictment charging him with three counts of wire fraud and one count of transacting in criminal proceeds. Judge Vazquez imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Fasolino owned several companies that were purportedly involved in the manufacture, sale and distribution of pasta, tomato sauce, olive oil and other food products. In 2012, Fasolino obtained approximately $3.4 million from two victims by falsely representing that Fasolino’s companies had been awarded lucrative contracts to sell olive oil.
In fact, there were never any such contracts. Fasolino supplied the victims with altered bank statements and spent the money on himself, including car and mortgage payments, apartment rentals, a wedding, college tuition and credit card payments.
In addition to the prison term, Judge Vazquez sentenced Fasolino to three years of supervised release and ordered restitution of $3.4 million.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s sentencing.
The government is represented by Executive Assistant U.S. Attorney Zach Intrater and Assistant U.S. Attorney Sarah Devlin of the Assert Forfeiture and Money Laundering Unit.
Jefferson County man admits to destroying mailboxRead the Press Release
MARTINSBURG, WEST VIRGINIA – Derek Wayne Blanken, Jr., of Harpers Ferry, West Virginia, has admitted to destroying a mailbox, United States Attorney Bill Powell announced.
Blanken, age 20, pled guilty to one count of “Destruction of Letter Boxes or Mail.” Blanken admitted to destroying a mailbox on Upper Clubhouse Drive in Harpers Ferry in October 2018.
Blanken faces up to three years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jeffrey A. Finucane is prosecuting the case on behalf of the government. The U.S. Postal Service investigated.U.S. Magistrate Judge Robert W. Trumble presided.
Jamaican National Sentenced for Passport Fraud OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NEVILLE S. NICHOLSON, 62, a citizen of Jamaica last residing in the Bronx, New York, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to approximately 12 months of imprisonment, time already served, for passport fraud offenses.
According to court documents and statements made in court, in June 2014, Nicholson submitted an application for a U.S. passport, in the name of another individual, at the Ferguson Library in Stamford, Connecticut. With his application, Nicholson provided the passport acceptance agent with a false birth certificate, a fraudulent New York State driver’s license, and his photograph for inclusion in the passport. Nicholson then signed under oath claiming to be the other individual. The U.S. Department of State subsequently issued a passport to Nicholson.
Nicholson used the fraudulent passport to travel between New York and Jamaica in 2014 and 2016.
Nicholson has been detained since his arrest on related New York state charges on September 1, 2017. He was transferred to federal custody on January 19, 2018.
On November 1, 2018, Nicholson pleaded guilty to one count of making a false statement in a passport application, and two counts of using a passport secured by false statement.
At the conclusion of today’s sentencing, Nicholson was transferred to the custody of U.S. Immigration and Customs Enforcement (ICE) and is subject to removal proceedings.
This matter was investigated by the U.S. Department of State, Diplomatic Security Service, with assistance from the New York City Police Department. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
Indictment: Wichita Man Threatened Operation Rescue Workers with Rape, DeathRead the Press Release
WICHITA, KAN. – A Wichita man was indicted today on federal charges of making calls to the office of Operation Rescue in which he threatened to injure employees and their families.
Christopher M. Thompson, 22, Wichita, Kan., is charged with three counts of making threats to injure a person. The crimes are alleged to have occurred Aug. 14, 2018, in Wichita, Kan.
The indictment alleges Thompson made calls threatening to kill Operation Rescue employees and rape their daughters.
If convicted, he faces up to five years in federal prison and a fine up to $250,000 on each count. The FBI and the Wichita Police Department investigated. Assistant U.S. Attorney Ryan McCarty is prosecuting.
OTHER INDICTMENTS
Salina Pharmacist and Husband Charged
Kirsty C. Hartley, 28, Salina, Kan., and Dalton R. Hartley, 28, Salina, Kan., are charged with one count of conspiring to distribute and dispense controlled substances and oneobtaining controlled substances by fraud. In addition, Kristy Hartley is charged with one count of unlawfully distributing and dispensing controlled substances.
The indictment alleges the crimes occurred while Kirsty Hartley worked as a pharmacist in charge at a CVS pharmacy in Salina. The indictment alleges Hartley diverted controlled prescription drugs by creating false prescriptions for herself and her husband and filling them. The indictment alleges they fraudulently obtained 21,289 tablets of hydrocodone with acetaminophen and 360 tablets of alprazolam.
The indictment alleges the investigation began when a loss prevention manager for CVS reported the problem to the Salina Police Department. Kirsty Hartley’s pharmacist license was suspended Sept. 23, 2017, by the Kansas Board of Pharmacy.
Upon conviction, the crimes carry the following penalties:
Conspiracy to distribute controlled substances (count one) and unlawfully distributing controlled substances (count two): Up to 20 years in federal prison and a fine up to $1 million.
Obtaining controlled substances by fraud: Up to four years and a fine up to $250,000.
The Salina Police Department and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Ohio Man Charged in Bank Robbery
Karsten D. Hardeman, 20, Dayton, Ohio, is charged with a robbery at the Sunflower Bank at 2073 N. Webb Road in Wichita, Kan. The crime is alleged to have occurred Dec. 26, 2018.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Three Project Safe Streets Indictments
Wendy L. Scearce, 35, Wichita, Kan., and Luis M. Hernandez, 38, Wichita, Kan., are charged with one count of conspiracy to distribute methamphetamine (count one), one count of possession with intent to distribute methamphetamine (count two), one count of possession with intent to distribute heroin (count three), one count of possession with intent to distribute marijuana (count four), one count of maintaining a property in furtherance of drug trafficking at 306 N. Seneca in Wichita, one count of unlawful possession of a firearm in furtherance of drug trafficking,
In addition, Scearce is charged with 13 counts of unlawful possession of a firearm following a felony conviction (counts six through 18), eight counts of distributing a controlled substance (counts 33 through 40) and one count of possession with intent to distribute methamphetamine. In addition, Hernandez is charged with 13 counts of unlawful possession of a firearm by an alien illegally in the United States.
The crimes are alleged to have occurred Dec. 28, 2018, in Wichita, Kan.
Upon conviction, the crimes carry the following penalties:
Count one: Not less than 10 years in federal prison and a fine up to $10 million.
Count two: Not less than 15 years and a fine up to $10 million.
Count three: 33 through 40 and 41: Up to 20 years and a fine up to $1 million.
Count four: Up to five years and a fine up to $250,000.
Count five: Up to 20 years and a fine up to $500,000.
Counts six through 31: Up to 10 years and a fine up to $250,000.
Count 32: Not less than five years and a fine up to $250,000.
The FBI and the Wichita Police Department’s Project Safe Streets Task Force investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Vickey Ewing, 63, Wichita, Kan., and Robert Ewing, Jr., 41, are charged in a superseding indictment with one count of conspiracy to distribute methamphetamine (count one), one count of possession with intent to distribute methamphetamine (count two), two counts of possession with intent to distribute methamphetamine (counts 4 and 5), two counts of maintaining a property in furtherance drug trafficking (1710 W. Walker in Wichita and 1140 S. St. Francis in Wichita, counts six and nine), and one count of possession with intent to distribute methamphetamine (count 12).
In addition, Vickey Ewing is charged with one count of possession with intent to distribute methamphetamine (count three), one count of unlawful possession of a firearm with the serial number removed (count seven), one count of unlawful possession of a firearm following a felony conviction (count eight) and two counts of aggravated identity theft (count 10 and 11).
Also charged in the case are Manda Lynch, 33, Wellington, Kan., and Leanna M. Brooker, 27, Wellington, Kan., who are charged with one count of distributing methamphetamine (count four).
The crimes are alleged to have occurred in 2018 in Wichita.
Upon conviction, the crimes carry the following penalties:
Count one: Not less than five years and not more than 40 years and a fine up to $5 million.
Counts two, three, four and five: Not less than five years and not more than 40 years and a fine up to $5 million.
Counts six and nine: Up to 20 years and a fine up to $5 million.
Count seven: Not more than five years and a fine up to $250,000.
Count eight: Not more than 10 years and a fine up to $250,000.
Counts 10 and 11: A mandatory two years and a fine up to $250,000.
Count 11: Not less than 10 years and a fine up to $10 million.
The FBI and the Wichita Police Department’s Project Safe Streets Task Force investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Jesus Torres, 30, Wichita, Kan., is charged with five counts of unlawful possession of a firearm by a person not lawfully in the United States, counts one through five), one count of possession with intent to distribute methamphetamine (count six), one count of possession of a firearm in furtherance of drug trafficking (counts seven and nine), one count of possession with intent to distribute methamphetamine (count eight).
Upon conviction, the crimes carry the following penalties:
Counts one through five: Not more than 10 years in federal prison and a fine up to $250,000.
Count six: Not less than five years and not more than 40 years and a fine up to $5 million.
Count eight: Not more than 20 years and a fine up to $1 million.
Counts seven and nine: Not less than five years and a fine up to $250,000.
Count eight: Not more than 20 years and a fine up to $1 million.
The FBI and the Wichita Police Department’s Project Safe Streets Task Force investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
18-Kilo Drug Case
Deyvis Alcantara-Rios, 35, Memphis, Tenn., is charged with one count of possessing approximately 18 kilograms (almost 40 pounds) of a mixture of methamphetamine with intent to distribute. The crime is alleged to have occurred Nov. 9, 2018, in Seward County, Kan.
If convicted, she faces a penalty of not less than 10 years in federal prison and a fine up to $4 million. The Kansas Highway Patrol and Drug Enforcement Administration Assistant U.S. Attorney Jason Hart is prosecuting.
ADDITIONAL INDICTMENTS
Allan Bryan DeJesus, 39, Bakersfield, Calif., is charged with one count of possession with intent to distribute methamphetamine (count one), one count of possession with intent to distribute heroin (count two) and one count of interstate travel in furtherance of drug trafficking (count three). The crimes are alleged to have occurred Jan. 5, 2019 in Thomas County, Kan.
If convicted, he faces the following penalties:
Count one: Not less than 10 years in federal prison and a fine up to $10 million.
Count two: Not less than five years and not more than 40 years and a fine up to $5 million.
Count three: Up to five years and a fine up to $250,000.
The Drug Enforcement Administration investigated. Assistant U.S. Attorney David Lind is prosecuting.
Erik Dixon, Jr., 22, Wichita, Kan., and Adrian D. Jones-Williams, 23, Wichita, Kan., are charged in a superseding indictment with one count of one count of possession with intent to distribute marijuana (count 8), one count of possession with intent to distribute alprazolam (count 9), one count of unlawful possession of a firearm by a user of a controlled substance (count 10) and one count of unlawful possession of a firearm in furtherance of drug trafficking (count 11). In addition, Dixon is charged with two counts of possession with intent to distribute marijuana (counts 1 and 15), one count of possession with intent to distribute alprazolam (count 2), three counts of unlawful possession of a firearm by a user of a controlled substance (counts 3, 13 and 16), two counts of unlawful possession of a firearm in furtherance of drug trafficking (counts 4 and 17), two counts of unlawfully receiving a firearm while charged with a felony (counts 12 and 14), one count of unlawful possession of a silencer in furtherance of drug trafficking (count 18) and four counts of attempting to influence the testimony of a federal witness (counts 21, 22, 23 and 24). In addition, Jones-Williams, is charged with two counts of possession with intent to distribute marijuana (counts 5 and 8), one count of possession of unlawful possession of a firearm by a user of a controlled substance (count 6) and two counts of unlawful possession of a firearm in furtherance of drug trafficking (counts 7 and 20). The crimes are alleged to have occurred in 2016, 2017 and 2018 in Wichita, Kan.
Upon conviction, the crimes carry the following penalties:
Counts 1, 5, 15 and 19: Up to 20 years in federal prison and fine up to $1 million.
Counts 2 and 9: Up to five years and a fine up to $250,000.
Counts 3, 6, 10, 13 and 16: Up to 10 years and a fine up to $250,000.
Counts 12 and 14: Up to five years and a fine up to $250,000.
Counts 4, 7, 11, 17, and 20: Not less than five years and a fine up to $250,000.
Count 18: Not less than 30 years and a fine up to $250,000.
Counts 21, 22, 23 and 24: Up to 20 years and a fine up to $250,000.
The Wichita Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Darick Charles Byrd, 34, who is in federal custody, is charged with four counts of making false statements on Form 4473, which is a report required by the Bureau of Alcohol, Tobacco, Firearms and Explosives to lawfully purchase a firearm from a licensed firearms dealer.
The indictment alleges Byrd bought the guns at Dave’s Guns in Abilene, Kan., Bob’s Pawn Shop East in Salina, and Nick’s Pawn Shop in Salina.
If convicted, he faces a penalty of up to 10 years in federal prison and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Joshua D. Halstead, 32, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction (count one), one count of unlawful possession of a firearm by a user of a controlled substance (count two) and one count of possession of methamphetamine (count three). The crimes are alleged to have occurred May 19, 2017, in Sedgwick County, Kan.
If convicted, he faces the following penalties:
Counts one and two: Up to 10 years in federal prison and a fine up to $250,000.
The Sedgwick County Sheriff’s Office investigated Assistant U.S. Attorney Ryan McCarty is prosecuting.
Deonte L. Jordan, 20, Wichita, Kan., is charged with two counts of unlawful possession of a firearm following a felony conviction (counts one and two) and two counts of unlawful possession of a firearm by a user of a controlled substance (counts three and four). The crimes are alleged to have occurred June 16, 2018, in Sedgwick County.
If convicted, the faces the following penalties
Counts 1 and 2: Up to 10 years in federal prison and a fine up to $250,000.
Counts 3 and 4: Up to 10 years and a fine up to $250,000.
The Sedgwick County Sheriff’s Office investigated. Assistant U.S. Attorney Ryan McCarty is prosecuting.
Juan Gama Acosta, 48, Wichita, Kan., is charged with one count of failing to register as required by the federal Sex Offender Registration and Notification Act.
If convicted, he faces a penalty of up to 10 years. The U.S. Marshals Office investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Ronnie Domnick, 48, Wichita, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Aug. 4, 2017, in Sedgwick County, Kan.
If convicted, he faces not less than 10 years in federal prison and a fine up to $4 million. The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Eugenio Serrano-Ramirez, 37, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Jan 7, 2019, in Sedgwick County, Kan.
If convicted, if faces up to two years in federal prison and a fine up to $250,000. The Department of Homeland Security investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
ICYMI: Oregon Man Sentenced to Life in Prison for Sexually Abusing Children at Orphanage in CambodiaRead the Press Release
EUGENE, Ore.—On January 18, 2019, Daniel Stephen Johnson, 40, of Coos Bay, Oregon, was sentenced to life in federal prison for repeatedly sexually abusing children who lived at an orphanage operated by the defendant in Cambodia.
In a jury trial ending on May 16, 2018, Johnson was convicted on six counts of engaging in illicit sexual conduct in a foreign place and one count each of travel with intent to engage in illicit sexual conduct and aggravated sexual assault with a child. He was sentenced to 30 years in prison on each count of illicit sexual conduct in a foreign place, 30 years for traveling with the intent to engage in illicit sexual conduct, and life in prison for aggravated sexual assault with children. The sentences for engaging in illicit sexual conduct in a foreign place will run consecutively.
According to court documents and information shared during trial, between November 2005 and his arrest in December 2013, Johnson systematically and repeatedly molested children who lived at an unlicensed orphanage he started and ran in Phnom Penh, Cambodia. Johnson funded the orphanage by soliciting donations from church groups in Oregon, California, Texas and elsewhere. Ten Cambodian victims—who ranged in age from seven to 18 years old at the time of abuse—have disclosed Johnson’s abuse or attempted abuse.
Victims described a pattern of molestation that includes, among other things, Johnson making them perform oral sex on him and anally raping them. Multiple victims said they were, on numerous occasions, awoken to Johnson abusing them. Following the abuse, Johnson would sometimes provide his impoverished victims with small amounts of money or food. On one occasion, Johnson gave a victim the equivalent of $2.50 in Cambodian currency.
In 2013, a warrant was issued for Johnson’s arrest on an unrelated case by officials in Lincoln County, Oregon. Local law enforcement officers worked with the FBI to locate Johnson overseas. The FBI in turn worked with the U.S. Department of State to revoke Johnson’s passport based on the Oregon warrant. Through the work of the FBI, Action Pour Les Enfants, a non-governmental organization dedicated to ending child sexual abuse and exploitation in Cambodia, and the Cambodian National Police (CNP), Johnson was located in Phnom Penh.
On December 9, 2013, CNP arrested Johnson. Based on disclosures made by children at the orphanage, Cambodian officials charged Johnson and detained him pending trial. In May 2014, Johnson was convicted by a Cambodian judge of performing indecent acts on one or more children at the orphanage and sentenced to a year in prison. Following his release from prison, Johnson was escorted back to the U.S. by the FBI.
Based on the sexual-abuse allegations against him, the FBI undertook a lengthy investigation of Johnson. During the course of their investigation, agents interviewed more than a dozen children and adults who had resided at the orphanage. Many of the interviews were audio- and video-taped and, in several instances, conducted in Cambodia by trained child-forensic interviewers. Some victims were interviewed multiple times before disclosing Johnson’s abuse.
Johnson was indicted by a federal grand jury in Eugene, Oregon on December 20, 2014 on one count of engaging in illicit sexual conduct in a foreign place. Seven additional charges were added by superseding indictment on May 17, 2017.
While in custody awaiting trial, Johnson made multiple efforts to tamper with witnesses and obstruct justice. Johnson contacted his victims online, encouraging them to lie and offering money and gifts. One message, sent via his relative’s Facebook account to an adult in Cambodia, discussed visiting a victim’s family and encouraging them to convince the victim to retract their statement, potentially in exchange for $10,000. Another message explains the need for a victim to say they were under duress and “pushed by police” to thumbprint a document.
This case was investigated by the FBI with the assistance of the Toledo, Oregon Police Department. It was prosecuted by Jeffrey S. Sweet and Ravi Sinha, Assistant U.S. Attorneys for the District of Oregon, and Lauren E. Britsch, Trial Attorney for the Justice Department’s Child Exploitation and Obscenity Section. Amy E. Potter, Assistant U.S. Attorney for the District of Oregon, assisted with the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Holland Man Pleads Guilty to Marijuana Manufacturing and Money Laundering ChargesRead the Press Release
BOSTON – A Holland man pleaded guilty today in federal court in Worcester to drug and money laundering charges.
Peter Molle Jr., 36, pleaded guilty to two counts of manufacturing marijuana and possessing marijuana with intent to distribute and one count of money laundering. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for April 29, 2019. Molle was arrested in December 2017.
In February 2017, federal agents executed a search warrant at Molle’s residence in Holland where they discovered a commercial-style marijuana grow operation with more than 100 marijuana plants. Even after the execution of the search warrant, Molle continued to engage in substantial black-market marijuana cultivation. In December 2017, agents executed another search warrant at Molle’s house and again located a significant commercial-style marijuana grow operation. The investigation also found that Molle used cash derived from the sale of marijuana to pay for expenses relating to his marijuana business, including to pay down the balance on a credit card that he used to purchase marijuana-related cultivation supplies.
Molle faces a minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million on the drug charges. The charge of money laundering provides for a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office, made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Criminal Division is prosecuting the case.
Great Falls man sentenced in fraud, money laundering schemeRead the Press Release
GREAT FALLS – Great Falls resident Jay Nash, who admitted defrauding four persons of more than $800,000 in real estate schemes, was sentenced on Tuesday to three and one-half years in prison and to three years of supervised release, U.S. Attorney Kurt Alme said today.
U.S. District Judge Brian M. Morris, who presided at sentencing, also ordered $842,729 in restitution.
Nash, 50, pleaded guilty in May 2018 to wire fraud and to money laundering.
Prosecutors said Nash took advantage of elderly persons, widows and friends, defrauding them and spending the money on boats, furniture and his mother’s house.
In one of the cases, Nash obtained a warranty deed in August 2011 on a house owned by one of the victims. The parties entered into a promissory note, which was secured by a mortgage on the property. The mortgage, however, was never filed with Cascade County. Four months later, without the victim’s knowledge, Nash took out two loans totaling more than $180,000 on the property. Nash then sold the property and did not give the proceeds to the victim.
As a result of the sale, $246,763 was wire transferred from Mann Mortgage. Nash then deposited $47,823, which represented the proceeds of the sale of the house after previous mortgages were paid.
Investigators determined that Nash spent the victim’s money from the two mortgages and ultimate sale of the house on boats, furniture, his mother’s house and other unrelated living expenses. None of the expenditures was approved by the victim.
The investigation also found that Nash had defrauded three other victims in similar schemes by entering promissory notes with the individuals and spending the money on unauthorized purchases.
Prosecutors said the fraud loss was more than $800,000.
U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the FBI and IRS.
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Grand Jury Returns Indictments Charging Gun & Drug CrimesRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Nekoosa Man Charged with Possessing Sawed-Off Shotguns
Jere Wipfli, 47, Nekoosa, Wisconsin, is charged with two counts of possessing a sawed-off shotgun. The indictment alleges that on May 28, 2018, he possessed a Remington 12 gauge shotgun and a Hiawatha 20 gauge shotgun, and that each firearm had a barrel of less than 18 inches in length.
If convicted, Wipfli faces a maximum penalty of 10 years in federal prison on each count. The charges against him are the result of an investigation by the Rome Police Department, Juneau County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case is being handled by Special Assistant U.S. Attorney Chadwick Elgersma.
Madison Man Charged with Gun Crime
Juan Longino, 45, Madison, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on January 9, 2019, Longino possessed a loaded .22 caliber pistol.
If convicted, Longino faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Dane County Narcotics Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case is being handled by Assistant U.S. Attorney Rita M. Rumbelow.
The indictments against Wipfli and Longino have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Richland Center Man Charged with Drug Crime
Joshua Clarke, 31, Richland Center, Wisconsin, is charged with possessing methamphetamine with the intent to distribute. The indictment alleges that he possessed the methamphetamine on November 11, 2018.
If convicted, Clarke faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by the Richland Center Police Department, Richland County Sheriff’s Office, Richland County District Attorney’s Office, and Drug Enforcement Administration. The prosecution of this case is being handled by Special Assistant U.S. Attorney Chadwick Elgersma.
Gallatin, Tennessee Man Pleads Guilty to Violent Crime SpreeRead the Press Release
NASHVILLE, Tenn. – January 30, 2019 – Harold Powell, aka “Goddi,” 31, of Gallatin, Tennessee, pleaded guilty yesterday in U.S. District Court to federal firearms and robbery charges relating to a violent crime spree in 2017, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. The plea agreement calls for a 22-year prison sentence, if approved by the court.
Powell was indicted in March 2018 and charged with two counts of Hobbs Act Robbery; one count of using, carrying and brandishing a firearm during a crime of violence; discharging a firearm during a crime of violence; and three counts of being a convicted felon in possession of a firearm. These charges followed a violent crime spree in Gallatin and Nashville, Tennessee, which began in January 2017 and continued through the middle of June 2017.
According to records filed with the court, on January 30, 2017, Powell accompanied another individual to a park in Gallatin for the purpose of buying marijuana. The meeting with the marijuana dealer had been pre-arranged and when they arrived, Powell and the other individual went to the dealer’s car. Powell then pointed a gun at the dealer’s head and demanded the marijuana, money, his phone and necklace. As he walked away, Powell turned and pointed the gun at the dealer again and said, “I should kill you.”
On February 13, 2017, after communicating with another individual about obtaining cocaine, Powell kicked in the door of an apartment in Gallatin, which was occupied by the cocaine dealer and two other persons, one of which was the same individual he robbed on January 30, 2017. Powell shouted his intentions to rob them and began firing a pistol, striking the cocaine dealer in the arm and leg. Powell backed out of the apartment and continued firing the weapon.
On June 6, 2017, Powell entered the Bargain Lot, a used car lot in Nashville. Several individuals were sitting on a small porch in front of the office and Powell called to them for help. When no one left the porch to assist him, Powell walked up to the porch and began firing a pistol. One of the individuals fell backward off the porch and broke his leg but continued to crawl under the porch to avoid being shot, but Powell continued firing and struck the individual in the shoulders and leg. Powell continued to shoot at him until he ran out of bullets and then calmly walked away.
Powell was subsequently arrested at a Nashville hotel on June 15, 2017, by Metro Nashville Police Detectives, who also recovered several firearms and rounds of ammunition and digital scales.
Powell is scheduled to be sentenced on April 19, 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Metropolitan Nashville Police Department; the Gallatin Police Department. Assistant U.S. Attorneys Katy Risinger, Amanda Klopf and Ben Schrader are prosecuting the case.
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