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Friday 21 December 2018
Omaha Man Sentenced for Drug Trafficking and Money Laundering as a Result of Joint DEA and IRS InvestigationRead the Press Release
United States Attorney Joseph P. Kelly announced that on December 21, 2018, United States District Judge Robert F. Rossiter, Jr., sentenced Jose Luis Murillo, of Omaha, to an 87-month term of imprisonment, to be served in the U.S. Bureau of Prisons. Murillo pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine and conspiracy to launder money. Mexican suppliers directed co-conspirators to deliver or retrieve pound quantities of methamphetamine to or from Murillo’s residence in Omaha and to collect cash drug proceeds from Murillo. Murillo also used wire transmitting businesses in the local area to wire drug proceeds to recipients in Mexico.
The case was primarily investigated by the Omaha offices of the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigations.
New York Man Sentenced to Prison for CyberstalkingRead the Press Release
ALEXANDRIA, Va. – A New York man was sentenced today to one year in prison for sending threats and framing three victims for crimes they did not commit.
According to court documents, Anthony Caccamo, 28, of Flushing, conducted an extensive harassment campaign against a woman and two men with whom the woman had had consensual romantic relationships. Using certain internet applications to hide his identity, Caccamo sent the woman threatening messages on a near-daily basis. Separately, Caccamo sent harassing messages to the two men during the same time period.
Beyond harassing his victims, Caccamo framed the woman and two men for crimes and workplace violations they had not committed. For instance, he sent a false tip to the Department of Homeland Security, accusing the woman of smuggling narcotics. Posing as one of his two male victims – who happened to be a government employee with a cybersecurity background – Caccamo threatened to hack the woman’s online accounts and disclose her sensitive information. After he became aware of the federal investigation, Caccamo pretended to be a victim himself, providing false statements and fabricated evidence to law enforcement to falsely implicate one of the two men. While the government ultimately traced the conduct back to Caccamo and cleared the framed individuals of wrongdoing, federal investigators spent more than 1,000 hours investigating the case.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and John V. Kelly, Acting Inspector General for the Department of Homeland Security (DHS), made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Laura Fong and Jay V. Prabhu prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-327.
New Paltz Man Pleads Guilty to Sexually Exploiting Four ChildrenRead the Press Release
SYRACUSE, NEW YORK – Cammron Robinson, 23, of New Paltz, New York, pled guilty to four counts of sexual exploitation of a child, announced United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
In entering his guilty plea in United States District Court, Robinson admitted that over the course of 3 years he convinced four minor children to engage in sexually explicit conduct and live-stream the activity to him over the internet.
As part of his guilty plea, Robinson admitted that from 2015 through 2017 he used the PS4 gaming console, Skype, Zoom, and cellular telephones to chat with numerous male children online. During the course of these communications Robinson persuaded, induced, enticed, or coerced boys between the ages of 11 and 13 to masturbate and/or show him their genitalia. He then captured the activity in video files he saved to electronic storage devices.
Senior United States District Judge Hon. Thomas J. McAvoy will sentence Robinson on April 17, 2019. He faces a mandatory minimum term of 15 years imprisonment on each count, with a maximum penalty of 30 years imprisonment per count. He will be required to serve a term of supervised release of a minimum of 5 years, and up to life, following his term of imprisonment. Robinson will also be required to register as a sex offender.
Robinson’s case was investigated by the New York State Police Bureau of Criminal Investigations, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
New Orleans Man Sentenced for Cocaine ConspiracyRead the Press Release
NEW ORLEANS –U.S. Attorney Peter G. Strasser announced that GABRIEL CARRETO-SANCHEZ, age 41, of New Orleans, was sentenced on December 19, 2018 after previously pleading guilty to conspiracy to distribute one kilogram or more of cocaine and possession with the intent to distribute one kilogram or more of cocaine.
United States District Court Judge Ivan L.R. Lemelle sentenced CARRETO-SANCHEZ to 50 months of imprisonment, followed by 4 years of supervised release and a $200 special assessment fee.
CARRETO-SANCHEZ traveled from New Orleans to Houston, Texas to receive approximately one kilogram of cocaine hydrochloride from a supplier. Subsequently, as he was returning to New Orleans, members of the Federal Bureau of Investigation conducted a stop of his vehicle and seized the kilogram of cocaine hidden inside the vehicle.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation, in investigating this matter. The prosecution of this case was handled by Assistant U.S. Attorney Jonathan L. Shih.
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New Jersey Woman Sentenced to 21 Months’ Imprisonment for Automobile Thefts and Aggravated Identity Theft OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Judge Robert D. Mariani sentenced Ashley Perez, age 29, to 21 months’ imprisonment and a two-year term of supervised release on December 20, 2018, for conspiring to commit theft on federal land, and for committing aggravated identity theft.
According to United States Attorney David J. Freed, Perez, her co-defendant, Lewis Davenport, and other individuals broke into unoccupied automobiles located in the Delaware Water Gap National Recreation Area. Perez admitted that she and her conspirators stole electronics, cellular phones, credit cards and other items from the automobiles, and used the stolen credit cards at various retail businesses in Pennsylvania.
In pronouncing the sentence, Judge Mariani emphasized Perez’s extensive criminal history, and the effects her crimes had on her victims. Judge Mariani also imposed a $1,174.89 order of restitution as part of Perez’s sentence.
Perez’s co-defendant, Davenport, previously was sentenced to 48 months’ imprisonment.
The investigation was conducted by the National Park Service Rangers. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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New Jersey Man Pleads Guilty to Turtle TraffickingRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that William Thomas Gangemi, age 26, of Freehold, New Jersey, pled guilty in federal court to Conspiracy to Smuggle Wildlife. Senior United States District Judge Joseph F. Anderson, Jr., accepted the plea and will sentence him at a later date.
Evidence presented at the hearing established that Gangemi participated in a syndicate of wildlife smugglers exchanging turtles protected by international agreements back and forth between the United States and China. The conspiracy was led by Steven Baker, age 38, of Holly Hill, who pled guilty in June 2018. Three other men, Joseph Logan Brooks, age 29, formerly of Holly Hill; Matthew Tyler Fischer, age 25, of Holly Hill; and Matthew Harrison Kail, age 30, of Pomona Park, Florida, pled guilty to the same Conspiracy in September 2018. William Fischer, age 48, of Harleyville, pled guilty to a misdemeanor Wildlife Trafficking charge the same day.
The activity took place from January through June 2016. Baker obtained protected turtles from Hong Kong to distribute here in the United States, and he shipped protected turtles from the United States to Asia. Gangemi collected turtles that he provided to Baker, shipped turtles domestically, and exchanged text messages with Baker regarding various shipments.
The transactions were set up using the Facebook text messaging feature. Shipments were made internationally through the United States Postal Service. Several packages were intercepted entering the United States at John F. Kennedy International Airport.
The maximum penalty faced by Gangemi is five years in federal prison.
The United States Fish and Wildlife Service, the United States Postal Inspection Service, and the South Carolina Department of Natural Resources investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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Missoula man sentenced to prison in meth caseRead the Press Release
MISSOULA—Missoula resident William Perry Hobbs, who admitted distributing methamphetamine to support a heroin addiction, was sentenced to four years in federal prison and five years of supervised released today, U.S. Attorney Kurt G. Alme said.
Hobbs, 38, pleaded guilty earlier to possession with intent to distribute meth.
Chief U.S. District Judge Dana L. Christensen presided at sentencing.
During an investigation, an undercover law enforcement officer bought meth from Hobbs three times, from March to May. The quantity of meth totaled more than 50 grams of actual meth. Fifty grams is the equivalent of 400 individual doses. In addition, evidence showed that an informant sometimes sold drugs with Hobbs. Hobbs also admitted he was a meth distributor in the Missoula area and distributed to support his heroin addiction.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Missoula High Intensity Drug Trafficking Area Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Mission Man Indicted for Assault by Strangulation and Suffocation and Domestic Violence by an Habitual OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assault by Strangulation and Suffocation and Domestic Assault by an Habitual Offender.
Roger James Spider, II, a/k/a Roger Spider, Jr., age 28, was indicted on July 17, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 18, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on multiple occasions between April 24, 2018, and April 26, 2018, Spider unlawfully committed a domestic assault against his intimate partner by strangling and suffocating her and that, at the time of the domestic assaults, Spider had at least two prior convictions for offenses that would have been, if subject to federal jurisdiction, assaults against a spouse or intimate partner.
The charges are merely accusations and Spider is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Spider was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mission Man Charged with Aggravated Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse and Sexual Abuse.
Joseph Running, age 23, was indicted on August 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 19, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on September 10, 2017, Running knowingly engaged in, and attempted to engage in, a sexual act with a woman by the use of force.
The charges are merely accusations and Running is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Running was released on bond pending trial. Trial is scheduled to begin on February 5, 2019.
Minnesota Man Indicted for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a St. Paul, Minnesota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Frank Edward Adams, a/k/a Tank Adams, age 44, was indicted on November 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 19, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison, including a mandatory minimum of 10 years in federal prison and/or a $10,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown but no later than on December 1, 2015, and continuing to November 14, 2018, in South Dakota, Adams knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance.
The charge is merely an accusation and Adams is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Adams was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mexican Citizen Pleads Guilty in Federal Court in Rockford to Bank Fraud SchemeRead the Press Release
ROCKFORD — A Mexican citizen pleaded guilty today in federal court before U.S. District Judge Philip G. Reinhard to bank fraud.
JAVIER SANTOS SUAREZ, also known as Roberto Rios, Simon Estrada, Jorge Viveros, Francisco Alvarado, and Fernando Razo, 40, admitted to scheming with co-defendants from January 2003 through August 2003 to defraud and obtain money using counterfeit checks - payable to fictitious names - that the defendants cashed in Northern Illinois and other states.
According to a written plea agreement, Suarez and his co-defendants used counterfeit checks that they cashed at banks near the businesses on which they were purportedly drawn. The defendants used false personal identification documents, such as false Resident Alien Cards, when presented to the banks to cash. Suarez admitted that he kept at least a portion of the cash he received from personally cashing counterfeit checks, and turned the balance of the cash over to other participants. Suarez and his co-defendants cashed counterfeit checks totaling $721,617 at banks and businesses in Poplar Grove, Marengo, and Harvard, as well as in other states.
Suarez was arrested in Wisconsin on the federal charges. He faces a maximum sentence of 30 years’ imprisonment, a term of supervised release of up to five years following imprisonment, and a fine of up to $1 million or twice the gross gain or gross loss resulting from the offense, whichever is greater. The actual sentence will be determined by the U.S. District Court, guided by the Sentencing Guidelines. Sentencing for Suarez is set for May 13, 2019, at 10:00 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
Also convicted of bank fraud in the case were:
ROGELIO RAMOS, 38, who pleaded guilty on Sept. 15, 2004, and was sentenced on Nov. 19, 2004, to 40 months in prison, to be followed by five years of supervised release. Ramos was ordered to pay restitution in the amount of $773,336.66.
LEONEL BELLO LEON, 41, who pleaded guilty on July 15, 2005, and was sentenced on Sept. 26, 2005, to 31 months in prison, to be followed by five years supervised release. Leon was ordered to pay restitution in the amount of $718,778.56.
MISEAL SANGABRIEL ALARCON, 38, who pleaded guilty on Dec. 16, 2005, and was sentenced on March 24, 2005, to 32 months in prison, to be followed by three years of supervised release. Alarcon was ordered to pay restitution in the amount of $141,738.50.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Member of the Mongols Outlaw Motorcycle Gang Sentenced to 30 Months in Federal Prison for Unlawful Possession of a FirearmRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Gabriel Trinidad Lopez, age 38, of Spokane, Washington, was sentenced today after having pleaded guilty on July 12, 2018, to being a felon in possession of a firearm. United States District Judge Stanley A. Bastian sentenced Lopez to a 30-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, on November 4, 2017, while conducting community safety operations to reduce violence between local rival outlaw motorcycle groups, law enforcement officers observed Lopez riding a motorcycle. He is a member of the Mongols, an outlaw motorcycle gang. While following Lopez, the officers observed a number of traffic violations and initiated a traffic stop. During the encounter, Lopez told the officers he possessed a firearm. Lopez is a convicted felon and is prohibited from possessing any firearm or ammunition.
Joseph H. Harrington said, “The sentence imposed today should serve as a reminder that convicted felons must not possess firearms. The United States Attorney’s Office for the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for previously convicted felons who possess firearms. I commend the joint investigatory efforts of the ATF, FBI, and Spokane County Sheriff’s Office in the investigation of this outlaw motorcycle gang-related matter.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Federal Bureau of Investigations Spokane Regional Safe Streets Task Force, Spokane County Sherriff’s Office Regional Intelligence Group, and the Spokane Resident Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Patrick J. Cashman, Assistant United States Attorney for the Eastern District of Washington.
McLaughlin Man Sentenced for Meth Trafficking and Gun ConvictionsRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person was sentenced on December 17, 2018, by U.S. District Judge Charles B. Kornmann.
Lawrence Leonard Malcolm, Sr., age 47, was sentenced to 22 months in federal prison, followed by 3 years of supervised release, a fine of $1,000, forfeiture of 2 firearms, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Malcolm was indicted by a federal grand jury on August 13, 2018. He pled guilty on October 1, 2018.
The conviction stemmed from an incident that occurred on July 5, 2018, when Malcolm was arrested on an outstanding warrant. During a vehicle search, several drug and drug paraphernalia items were found. Malcolm knowingly and intentionally possessed with intent to distribute methamphetamine, a Schedule II controlled substance. A further search of Malcolm’s home revealed two firearms, additional drugs, and drug paraphernalia items. Malcolm admits to being a regular user of and addicted to a controlled substance, methamphetamine, making it illegal for him to possess firearms.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Corson County Sheriff’s Office, the Northern Plains Safe Trails Drug Enforcement Task Force, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Meghan N. Dilges prosecuted the case.
Malcolm was immediately turned over to the custody of the U.S. Marshals Service.
Man Sentenced to Fifty-Two Months in Prison for Multi-Million Dollar Tax Refund SchemeRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on December 13, 2018, Deily Veras (age 33) of Newark, New Jersey, was sentenced in federal court to 52 months in prison for fraudulently obtaining over $2.7 million in tax refund checks. The sentence followed his guilty plea to theft of government money, in violation of Title 18, United States Code, Section 641, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Veras was also ordered to pay $2,766,926.15 in restitution to the Internal Revenue Service (“IRS”).
Veras committed his theft by fraudulently obtaining the identities and Social Security Numbers (“SSNs”) primarily of Puerto Rican residents. Residents of Puerto Rico are issued SSNs, but they are not required to file federal income tax returns or pay federal income tax unless they earn income from sources outside of Puerto Rico. Accordingly, Puerto Rican residents are vulnerable to stolen identity refund fraud because their SSNs are usually not already associated with a United States income tax return. Veras took advantage of this vulnerability by using the names and SSNs of Puerto Rico residents to fraudulently file false tax returns and receive refund checks in the United States mail. Veras would then take the tax refund checks to an individual in Milwaukee, Wisconsin, for cashing.
As part of the investigation of Veras, IRS Criminal Investigation agents executed search warrants at Veras’ home and business in New Jersey. During the execution of the warrants, agents seized evidence of personal identifying information of over 500 individuals, most of whom were Puerto Rican residents.
“The defendant stole not only individuals’ identities but also hard-working taxpayers’ funds,” said U.S. Attorney Krueger. “This lengthy sentence should send a clear message that identity theft and tax fraud will be prosecuted aggressively. We commend IRS Criminal Investigation’s excellent work in building this case.”
IRS Criminal Investigation Acting Special Agent in Charge Edward Ng said, “Individuals who commit identity theft of this magnitude and with this degree of dishonesty and deceit, deserve to be punished to the fullest extent of the law. IRS Criminal Investigation, along with our law enforcement partners and the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury and blatantly disregard the victims of their schemes.”
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant United States Attorney Keith Alexander.
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Man Sentenced to 58 Months in Federal Prison for Fraud Involving Counterfeit Debit Cards and ATM Skimming SchemeRead the Press Release
United States Attorney Matthew D. Krueger has announced that on December 19, 2018, Judge J.P. Stadtmueller, District Court Judge in the Eastern District of Wisconsin, sentenced Ionel Muresanu, 18, to 58 months in federal prison following his conviction for multiple offenses involving the possession and use of counterfeit debit cards. Muresanu, a native of Craiova, Romania, is subject to deportation upon the completion of that sentence.
On September 11, 2018, Muresanu was convicted by a federal jury of one count of Possession of 15 or More Counterfeit Access Devices, in violation of 18 U.S.C. Section 1029 (a)(3), and three counts of Aggravated Identity Theft, in violation 18 U.S.C. Section 1028A (1). In addition to the prison sentence, Stadtmueller, ordered Muresanu to pay $146,721.80 in restitution. He described identity theft as one of the worst crimes he could imagine, noting the far-reaching consequences for unsuspecting victims.
At trial, the jury heard testimony that Muresanu, along with a juvenile companion, participated in an ATM skimming scheme, wherein they placed and retrieved “skimmers” and pinhole cameras at ATM machines. The devices captured the account and personal identification numbers of unknowing customers, which another accomplice transferred to the magnetic stripes of generic gift cards. Muresanu and his juvenile companion along with other teams of workers traveled around the country, using the counterfeit cards to extract money from the accounts of unknowing victims.
Muresanu was arrested on May 16, 2018, in Oshkosh, Wisconsin by detectives from the Oshkosh Police Department who investigated based on a tip from Tennessee law enforcement.
At the time of his arrest, Muresanu possessed a total of 80 counterfeit cards. An additional 14 cards were recovered from his juvenile companion and six more cards were recovered at the Oshkosh store where the two were observed using the cards at an ATM.
In his statements to the police, Muresanu admitted that he had placed skimming and pinhole devices on ATM machines in Nashville, Tennessee, Atlanta, Georgia, and Kansas City, Missouri. He told police that after the counterfeit cards were created, he and his accomplices waited for several months before traveling to different states to use the cards. He would get 25% of the stolen proceeds obtained with each batch of cards, and had obtained as much as $30,000 from a single batch. Receipts recovered at the time of his arrest showed that Muresanu and his companion had used some of the recovered cards at ATM’s in Illinois and Wisconsin before they were apprehended.
“This lengthy sentence—nearly five years in federal prison—sends a clear message that identity theft is a serious crime that deserves serious punishment,” said U.S. Attorney Krueger. “I commend the law enforcement agencies for their excellent work in building this case.”
This case was investigated by the Oshkosh Police Department, the United States Secret Service Milwaukee Financial Crimes Task Force, and the Wauwatosa Police Department. The case was prosecuted by Assistant United States Attorneys Karine Moreno-Taxman and Carol L. Kraft
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Local Military Member Pleads Guilty in International Cocaine Importation ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Daniel J. Gould, 36, of Crestview, pleaded guilty yesterday to two drug trafficking conspiracy counts involving 5 kilograms or more of cocaine. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Between January and August 2018 in the Northern District of Florida and in the country of Colombia, Daniel Gould of the United States Army conspired to distribute 5 kilograms or more of cocaine, knowing it would be unlawfully imported into the United States. He also conspired to distribute and possess with intent to distribute 5 kilograms or more of cocaine.
In August 2018, the Drug Enforcement Administration (DEA) received information that Gould had attempted to import 40 kilograms of cocaine onto a military transport flight in Colombia with a final destination of the Northern District of Florida. Suspicion was aroused at the United States Embassy when packages were x-rayed, revealing cocaine within gutted out punching bags. On August 13, 2018, when the cocaine was seized at the embassy, Gould had already returned home and was awaiting its arrival.
The conspiracy began in early 2018 when Gould and his co-defendants conspired to import 10 kilograms of cocaine into the United States. Gould’s co-defendant traveled to Colombia with U.S. currency to use as payment. Another co-defendant confirmed he could acquire cocaine for $1,800-$1,900 per kilogram. Gould placed the cocaine in a gutted punching bag and had the package transported to Bogota to be placed on a United States military aircraft.
A few days later, the cocaine-filled punching bag arrived at Duke Field. Gould and a co-defendant distributed the 10 kilograms of cocaine in Northwest Florida.
Gould and his co-defendant reinvested the money from the first load of cocaine into a second load of 40 kilograms of cocaine. Gould placed approximately $65,000 on a United States military cargo aircraft destined for Colombia as funds for the next purchase.
In early August, Gould and his co-defendant returned to Colombia and provided their co-defendant the money for the 40 kilograms. Gould and his co-defendant received the cocaine, loaded the 40 kilograms into two gutted punching bags, and coordinated their transport to the embassy before flying back to the United States. The estimated value of 40 kilograms of cocaine in the Northern District of Florida would be in excess of $1 million.
Gould faces 10 years to life in prison for each of the drug trafficking conspiracy charges. The sentencing hearing is scheduled for March 12, 2019, at 10:30 a.m. in the U.S. District Court in Pensacola.
This case resulted from an investigation by the Drug Enforcement Administration and the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) program. Assistant United States Attorney David L. Goldberg is prosecuting the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Lehigh Acres Man Convicted of Theft of Government Money and Identity Theft CrimesRead the Press Release
Fort Myers, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Kenneth R. Jackson, Jr. (42, Lehigh Acres) guilty of five counts of identity theft, five counts of conversion of government property, five counts of aggravated identity theft, one count of passing a forged treasury check, and one count of access device fraud. He faces a maximum penalty of 5 years in federal prison for each count of identity theft, up to 10 years’ imprisonment on each count of converting government property and for passing a forged treasury check, up to 15 years in federal prison for the access device fraud count and a minimum mandatory term of 2 years for the aggravated identity theft charges. His sentencing hearing is scheduled for April 1, 2019.
According to testimony and evidence presented at the five-day trial, Jackson operated a business that allowed him access to credit reports. He used his business to unlawfully obtain credit reports on his victims and opened fraudulent bank accounts online in their names. Jackson then deposited stolen U.S. Treasury tax refund checks in their accounts totaling approximately $115,000. He used associates to launder the money or he withdrew cash from ATMs at the banks.
This case was investigated by the Internal Revenue Service Criminal Investigation and the U.S. Secret Service. It is being prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Kingsmen Member Sentenced for RICO ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jason Williams, 44, of Kenmore, NY, who was convicted of RICO conspiracy, was sentenced to serve 48 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Joseph M. Tripi and Brendan T. Cullinane, who handled the case, stated that the defendant, a/k/a Toop, was a member of the North Tonawanda Chapter and the West Side of Buffalo Chapter of the Kingsmen Motorcycle Club (KMC) between 2009 and 2016. Williams served in various capacities, including as the Vice President of the North Tonawanda Chapter.
KMC members and associates used marijuana, cocaine, methamphetamine, and other controlled substances at the North Tonawanda and West Side of Buffalo KMC Chapter Clubhouses. At times, Williams obtained and supplied quantities of marijuana and cocaine to KMC members, and used and distributed cocaine and marijuana. The defendant used telephones and Facebook messaging to arrange drug transactions. KMC members also possessed, maintained, and sold firearms.
Williams is one of 20 KMC members and associates charged and convicted in this case. Williams is the fifth defendant to be sentenced.
The sentencing is the culmination of an investigation led by the Federal Bureau of Investigation’s Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert. Assisting in the investigation: the FBI Knoxville, TN, and Jacksonville, FL Field Offices; Immigration and Customs Enforcement, Homeland Security Investigations; the Erie County Sheriff’s Office; the Buffalo Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the New York State Police; the Olean Police Department; the Lancaster Police Department; the Amherst Police Department; the City of North Tonawanda Police Department; the Niagara Frontier Transportation Authority Police; the Cattaraugus County Sheriff’s Department; and the Hamburg Police Department.
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Kendall County Real Estate Professional Charged with Operating $23 Million Ponzi SchemeRead the Press Release
CHICAGO — A Kendall County real estate professional has been indicted on federal fraud charges for allegedly orchestrating a $23 million Ponzi scheme.
MICHELLE LABRA owned and operated Labra Group Realtors LLC, an Aurora-based investment program that used the promise of outsized returns to receive $23 million from at least 25 investors from 2009 to 2015, according to an indictment returned Thursday in U.S. District Court in Chicago. Instead of investing the money, Labra spent approximately $19.6 million to pay earlier investors via Ponzi-type payments, while misappropriating more than $3.3 million for her personal benefit, including expensive jewelry and vacations in Jamaica, Mexico and Guatemala, the indictment states.
The indictment charges Labra, 47, of Yorkville, with three counts of wire fraud and one count of making a false statement to the U.S. Treasury Inspector General for Tax Administration. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and J. Russell George, United States Treasury Inspector General for Tax Administration. The government is represented by Assistant U.S. Attorney John D. Mitchell.
According to the indictment, Labra claimed that investor funds would be used to make short-term, high-interest loans to borrowers, and that the loans would be secured by the borrowers’ residences. Labra represented that investors would receive full repayment of the principal loan amount, a service fee paid by the borrower, and at least 14% interest on the loan, the indictment states. In reality, Labra never entered into any agreements with borrowers.
Labra attempted to conceal the scheme by making false representations to investors about the reasons why she could not return their money or send them their purported gains. At one point Labra falsely claimed that IRS agents had issued levies and seized investor funds from the Labra Group’s bank accounts, the indictment states. In reality, the IRS had not seized any funds or issued any such levies.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of wire fraud carries a maximum sentence of 20 years in prison, while the false statement charge is punishable by up to five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
KCK Man Sentenced to 19 Years for Drug Trafficking, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Kan., man has been sentenced in federal court for illegally possessing crack cocaine and a firearm.
Antonio E. Wills, 43, was sentenced by U.S. District Judge Roseann Ketchmark on Thursday, Dec. 20, 2018, to 19 years in federal prison without parole. Wills was sentenced as a career offender due to his prior felony convictions. The court ordered the federal sentence to be served consecutively to the upcoming sentence in the District of Kansas for violating his supervised release in a separate federal case.
On Feb. 9, 2018, Wills pleaded guilty to possessing cocaine with the intent to distribute and to being a felon in possession of a firearm.
Wills was a passenger in a vehicle that attempted to avoid a DUI checkpoint on March 19, 2016, by making a U-turn in the middle of Main Street. Kansas City, Mo., police officers stopped the vehicle and directed the driver back to the checkpoint. Officers at the checkpoint smelled a strong odor of marijuana and observed Wills trying to conceal something inside his front hoodie pocket. Wills and the driver were both instructed to get out of the vehicle, at which time an officer saw a clear plastic baggy that contained cocaine in Wills’s hand. An officer instructed Wills to drop the clear bag. Wills failed to comply and placed the bag back in his front hoodie pocket. The officer attempted to take Wills into custody, but he refused to comply and a struggle ensued. Additional officers responded to assist with taking Wills into custody.
When officers searched Wills, they found another clear plastic baggy that contained cocaine in his cargo shorts pocket and a loaded Glock .45-caliber handgun (with an obliterated serial number) in his waistband. They also found marijuana and $2,186 in Wills’s pocket. Wills was in possession of 71.5 grams of powder cocaine and 7.7 grams of crack cocaine.
At the time of his arrest, Wills was on supervised release after being convicted in a separate drug-trafficking case and serving more than 10 years in prison. A federal warrant had been issued for his arrest, based on his absconding from supervision.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Wills has prior felony convictions for possession with intent to distribute crack cocaine, possession of a controlled substance and driving while a habitual violator.
This case was prosecuted by Assistant U.S. Attorneys Adam Caine and Ashleigh Ragner. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Justice Department and EEOC Sign Memorandum of Understanding to Prevent and Address Harassment of Employees in State and Local GovernmentsRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Equal Employment Opportunity Commission (EEOC) today signed a new Memorandum of Understanding (MOU) to prevent and address workplace harassment in state and local government. The EEOC and the Justice Department seek to enhance the effectiveness of the nation’s equal employment opportunity enforcement in the state and local government sector to ensure the efficient use of resources and a consistent enforcement strategy. The EEOC has ramped up its role as enforcer, educator, and leader on harassment in the workplace, and this MOU enhances those efforts.
EEOC Acting Chair Victoria A. Lipnic and Assistant Attorney General Eric Dreiband signed the MOU on Dec. 21 in Washington, D.C.
“All Americans are entitled to work with dignity in a place that is free of unlawful and discriminatory harassment,” said Assistant Attorney General Eric Dreiband. “Last February, the Justice Department’s Civil Rights Division launched an initiative to fight sexual harassment in the workplace. We are also diligently working to prosecute cases of racial and other forms of illegal discrimination. Through our strong partnership with the EEOC, we will continue to identify harassment claims, prosecute lawbreakers, seek relief for victims, and fight to eliminate harassment from the workplace.”
“I am pleased to be able to renew our work with the Department of Justice in this regard,” said Acting Chair Lipnic. “Harassment at work can have a devastating impact on people. The employees in the public sector deserve as much of our attention on this issue as those in the private sector.” Lipnic added, “I especially want to thank EEOC Commissioner Charlotte Burrows for her attention to issues in this sector. I look forward to using her years of experience at the Department of Justice to help us move forward with our important work.”
EEOC Commissioner Charlotte A. Burrows stated, “Anyone who suffers workplace harassment deserves prompt relief. I commend Acting Chair Lipnic and Assistant Attorney General Dreiband for their leadership in taking this important step to enhance the federal response in harassment investigations.”
The EEOC and the Department of Justice share enforcement authority for employment discrimination claims involving state and local government employers under Title VII of the Civil Rights Act. The EEOC receives, investigates, and mediates charges of discrimination against such public employers. Where the EEOC finds reasonable cause to believe an unlawful employment practice has occurred, the agency works with the employer to negotiate a mutually agreeable resolution to the charge. If conciliation of a charge fails, the EEOC refers the charge and its investigative file to the Justice Department, which has sole authority within the federal government to file a lawsuit against state and local governments under Title VII.
The agencies’ shared concern over the need for immediate action to prevent further harm in some harassment cases, including sexual harassment, led the EEOC and the Justice Department to amend the MOU. It now includes provisions for the expedited coordination of any charge involving state or local government employers where the EEOC’s preliminary investigation of a charge reveals that immediate action is needed to prevent further harm. In those cases, the EEOC will provide the Justice Department with the information necessary to obtain an injunction, temporary or preliminary relief, in federal court for the affected employees, pending the final outcome of the charge.
The MOU and information about Title VII and other federal employment laws is available on the Employment Litigation Section of the Civil Rights Division’s website or the EEOC’s website.
The EEOC advances opportunity in the workplace by enforcing federal laws prohibiting employment discrimination. More information is available at www.eeoc.gov. Stay connected with the latest EEOC news by subscribing to our email updates.
Justice Department Recovers over $2.8 Billion from False Claims Act Cases in Fiscal Year 2018Read the Press Release
NOTE: The 2018 False Claims Act statistics can be found here.
The Department of Justice obtained more than $2.8 billion in settlements and judgments from civil cases involving fraud and false claims against the government in the fiscal year ending Sept. 30, 2018, Principal Deputy Associate Attorney General Jesse Panuccio and Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division announced today. Recoveries since 1986, when Congress substantially strengthened the civil False Claims Act, now total more than $59 billion.
“Every year, the submission of false claims to the government cheats the American taxpayer out of billions of dollars,” said Principal Deputy Associate Attorney General Panuccio. “In some cases, unscrupulous actors undermine federal healthcare programs or circumvent safeguards meant to protect the public health. In other instances, deceitful contractors overcharge our military or sell faulty equipment to our law enforcement agencies. Such fraud will not be tolerated by the Department of Justice. The nearly three billion dollars recovered by the Civil Division represents the Department’s continued commitment to fighting fraudsters and cheats on behalf of the American taxpayer.”
“The False Claims Act was originally passed in response to rampant fraud perpetrated against the United States military during the Civil War. Back then, crooked contractors defrauded the Union Army by selling it sick mules, lame horses, sawdust instead of gunpowder, and rotted ships with fresh paint. Unfortunately, what we see today is just a modern version of the same thing — deceptive and fraudulent practices directed at the U.S. government and the American taxpayer,” said Assistant Attorney General Jody Hunt. “The Department of Justice has placed a high priority on rooting out and pursuing those who cheat government programs for their own gain. The recoveries announced today are a message that fraud and dishonesty will not be tolerated.”
Of the $2.8 billion in settlements and judgments recovered by the Department of Justice this past fiscal year, $2.5 billion involved the health care industry, including drug and medical device manufacturers, managed care providers, hospitals, pharmacies, hospice organizations, laboratories, and physicians. This is the ninth consecutive year that the Department’s civil health care fraud settlements and judgments have exceeded $2 billion. The recoveries included in the $2.5 billion reflect only federal losses but, in many of these cases, the Department was instrumental in recovering additional millions of dollars for state Medicaid programs.
In addition to combatting health care fraud, the False Claims Act serves as the government’s primary civil remedy to redress false claims for federal funds and property involving a multitude of government operations and contracts. These areas range from defense and national security to import tariffs and small business programs.
In 1986, Congress strengthened the Act by increasing incentives for whistleblowers to file lawsuits alleging false claims on behalf of the government. These whistleblower, or qui tam, actions comprise a significant percentage of the False Claims Act cases that are filed. If the government prevails in a qui tamaction, the whistleblower, also known as the relator, receives up to 30 percent of the recovery. Whistleblowers filed 645 qui tam suits in fiscal year 2018, and this past year the Department recovered over $2.1 billion in these and earlier filed suits.
Health Care Fraud
The Department investigates and resolves matters involving a wide array of health care providers, goods, and services. The Department’s health care fraud enforcement efforts recover money for federal programs that fund health care for our nation’s most vulnerable and deserving citizens, such as Medicare, Medicaid, and TRICARE. But just as important, the Department’s vigorous pursuit of health care fraud prevents billions more in losses by deterring those who might otherwise try to cheat the system for their own gain.
The largest recoveries involving the health care industry this past year came from the drug and medical device industry. In one matter, AmerisourceBergen Corporation and certain of its subsidiaries paid $625 million to resolve allegations that they sought to circumvent important safeguards intended to preserve the integrity of the nation’s drug supply and profit from the repackaging of certain drugs supplied to cancer-stricken patients. Of that amount, $581.8 million was paid to the federal government and $43.2 million was paid to state Medicaid programs. https://www.justice.gov/opa/pr/amerisourcebergen-corporation-agrees-pay-625-million-resolve-allegations-it-illegally. In another matter, the medical device manufacturer Alere paid $33.2 million to resolve allegations that it sold a materially unreliable testing device that was intended to aid clinicians in the diagnosis of drug overdoses, acute coronary syndrome and other serious conditions. Of the $33.2 million paid by Alere, $28.4 million was returned to the federal government and $4.8 million was returned to state Medicaid programs. https://www.justice.gov/opa/pr/alere-pay-us-332-million-settle-false-claims-act-allegations-relating-unreliable-diagnostic.
The Department has investigated efforts by drug manufacturers to facilitate increases in drug prices by funding the co-payments of Medicare patients. Congress included co-pay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. This year, pharmaceutical company United Therapeutics Corporation, a seller of pulmonary arterial hypertension (PAH) drugs, paid $210 million to resolve allegations that it used a foundation as an illegal conduit to pay the co-pay obligations of thousands of Medicare patients taking its PAH drugs. https://www.justice.gov/usao-ma/pr/united-therapeutics-agrees-pay-210-million-resolve-allegations-it-paid-kickbacks-through. In addition, the drug manufacturer Pfizer paid approximately $23.85 million to resolve claims that it used a foundation as a conduit to pay the co-pays of Medicare patients taking Pfizer drugs. The government alleged that Pfizer raised the price of one of those drugs by 40 percent in just three months. https://www.justice.gov/opa/pr/drug-maker-pfizer-agrees-pay-2385-million-resolve-false-claims-act-liability-paying-kickbacks.
The Department also reported substantial recoveries from other health care providers. In a matter that came to light in part by a voluntary disclosure by the company to the Department, HealthCare Partners Holdings LLC (HCP), doing business as DaVita Medical Holdings LLC, paid $270 million to resolve its liability for providing inaccurate information that caused Medicare Advantage Organizations (MAOs) to receive inflated Medicare payments. DaVita acquired HCP, a large California-based independent physician association, in 2012 and disclosed to the government various improper practices that were instituted by HCP. In addition, this settlement resolved whistleblower allegations that HCP engaged in “one-way” chart reviews in which it scoured its patients’ medical records to find additional diagnoses that enabled managed care plans to obtain added revenue from the Medicare program. At the same time, however, it ignored inaccurate diagnosis codes revealed by its reviews that, if deleted, would have decreased Medicare reimbursement or required the plans to repay money to Medicare. https://www.justice.gov/opa/pr/medicare-advantage-provider-pay-270-million-settle-false-claims-act-liabilities. In 2017, the Department filed suit against UnitedHealth Group Inc. (UHG) alleging similar allegations that UHG knowingly obtained inflated risk adjustment payments based on untruthful and inaccurate information about the health status of beneficiaries enrolled in UHG’s Medicare Advantage Plans throughout the United States. https://www.justice.gov/opa/pr/united-states-intervenes-second-false-claims-act-lawsuit-alleging-unitedhealth-group-inc. That litigation is ongoing.
In a matter that concluded in both a civil recovery and criminal plea, the former hospital chain Health Management Associates (HMA) paid over $216 million to resolve civil allegations that it billed government health care programs for more-costly inpatient services that should have been billed as observation or out-patient services, paid illegal remuneration to physicians in return for patient referrals to HMA hospitals, and inflated claims for emergency department facility fees. In addition to these civil recoveries, HMA’s subsidiary, Carlisle HMA Inc., pleaded guilty to one count of conspiracy to commit health care fraud arising from illegal conduct designed to aggressively increase admissions to the hospital and paid a $35 million monetary penalty. https://www.justice.gov/opa/pr/hospital-chain-will-pay-over-260-million-resolve-false-billing-and-kickback-allegations-one. In another matter, William Beaumont Hospital, a regional hospital system based in the Detroit, Michigan area, paid $84.5 million to resolve allegations of improper relationships with eight referring physicians intended to induce patient referrals. https://www.justice.gov/opa/pr/detroit-area-hospital-system-pay-845-million-settle-false-claims-act-allegations-arising.
As some of the matters described illustrate, the Department continued to place great importance on enforcing the safeguards contained within the Anti-Kickback Statute (AKS). This law was enacted to ensure that clinical decisions and medical services are provided to patients based on their medical needs and not on the improper financial considerations of providers. Congress has made clear that claims submitted to federal health care programs in violation of the AKS are “false” claims for purposes of the False Claims Act.
Procurement Fraud
In the past year, the Department also pursued a variety of fraud matters involving the government’s purchase of goods and services. Toyobo Co. Ltd. of Japan and its American subsidiary, Toyobo U.S.A. Inc., f/k/a Toyobo America Inc. (collectively, Toyobo), paid $66 million to resolve claims that they sold defective Zylon fiber used in bullet proof vests that the United States purchased for federal, state, local, and tribal law enforcement agencies. The United States further alleged that between at least 2001 and 2005, Toyobo, the sole manufacturer of Zylon fiber, knew that Zylon degraded quickly in normal heat and humidity and that this degradation rendered bullet proof vests containing Zylon unfit for use. The United States alleged that Toyobo nonetheless actively marketed Zylon fiber for bullet proof vests, published misleading data that understated the degradation problem and, when one body armor manufacturer recalled some of its Zylon-containing vests in late 2003, started a public relations campaign designed to influence other body armor manufacturers to keep selling Zylon-containing vests. Toyobo’s actions allegedly delayed by several years the government’s efforts to determine the true extent of Zylon degradation. Finally, in August 2005, the National Institute of Justice (NIJ) completed a study of Zylon-containing vests and found that more than 50 percent of used vests could not stop bullets that they had been certified to stop. Thereafter, all Zylon-containing vests were decertified for use. With this year’s Toyobo settlement, more than $132 million has been recovered by the Department in False Claims Act matters involving the manufacture, distribution or sale of Zylon by body armor manufacturers, weavers, and international trading companies. https://www.justice.gov/opa/pr/japanese-fiber-manufacturer-pay-66-million-alleged-false-claims-related-defective-bullet.
United Kingdom marine services contractor, Inchcape Shipping Services Holdings Limited, and certain of its subsidiaries paid $20 million to resolve allegations that they overbilled the U.S. Navy under contracts to provide services to Navy ships at ports in several regions throughout the world, including southwest Asia, Africa, Panama, North America, South America and Mexico. In its suit, the government alleged that Inchcape knowingly overbilled the Navy by submitting invoices that overstated the quantity of goods and services provided, billing at rates in excess of applicable contract rates, and double-billing for some goods and services. https://www.justice.gov/opa/pr/united-states-settles-lawsuit-alleging-contractor-falsely-overcharged-us-navy-ship-husbanding.
In another matter, TrellisWare Technologies Inc., a communications company located in San Diego, California, paid over $12 million to settle allegations that it was ineligible for multiple Small Business Innovation and Research (SBIR) contracts it had entered into with the Navy, Army, and Air Force. The SBIR program is designed to stimulate technological innovation by funding small businesses to engage in federal research and development efforts. The United States alleged that TrellisWare was not eligible for SBIR awards because it was actually a majority-owned subsidiary of a large company at the time it was awarded and performed the SBIR contracts. https://www.justice.gov/usao-sdca/pr/san-diego-communications-company-pays-more-12-million-settle-false-claim-act.
In addition, 3M Company, headquartered in St. Paul, Minnesota, paid $9.1 million to resolve allegations that it knowingly sold dual-ended Combat Arms Earplugs to the United States military without disclosing defects that hampered the effectiveness of the hearing protection device. https://www.justice.gov/opa/pr/3m-company-agrees-pay-91-million-resolve-allegations-it-supplied-united-states-defective-dual.
Other Fraud Recoveries
The number and variety of judgments and settlements announced during fiscal year 2018 illustrate the diversity of fraud cases pursued by the Department. For example, in February 2018, Deloitte & Touche LLP agreed to pay $149.5 million to resolve potential False Claims Act liability arising from Deloitte’s role as the independent outside auditor of Taylor, Bean & Whitaker Mortgage Corp. (TBW), a failed originator of mortgage loans insured by the Federal Housing Administration (FHA) in the Department of Housing and Urban Development (HUD). Deloitte served as TBW’s independent outside auditor during the time TBW had been engaged in a long-running fraudulent scheme involving, among other things, the purported sale of fictitious or double-pledged mortgage loans. The United States alleged that Deloitte’s audits knowingly deviated from applicable auditing standards and therefore failed to detect TBW’s fraudulent conduct and materially false and misleading financial statements. https://www.justice.gov/opa/pr/deloitte-touche-agrees-pay-1495-million-settle-claims-arising-its-audits-failed-mortgage.
The False Claims Act was also used this past year to redress avoidance of antidumping duties that are in place to protect against foreign companies “dumping” products on the U.S. market at prices below cost. The Department of Commerce assesses, and the Department of Homeland Security’s Customs and Border Protection collects, these duties to protect U.S. businesses and level the playing field for domestic products. This year, the Virginia-based home furnishings company, Bassett Mirror Company, paid $10.5 million to resolve allegations that it knowingly made false statements on customs declarations to avoid paying antidumping duties on wooden bedroom furniture imported from the People’s Republic of China (PRC). The Department alleged that between January 2009 and February 2014, Bassett Mirror evaded these antidumping duties by knowingly misclassifying the furniture as non-bedroom furniture on its official import documents. At the time of the alleged conduct in this case, wooden bedroom furniture from the PRC was subject to a 216 percent antidumping duty; non-bedroom furniture was not subject to an antidumping duty. https://www.justice.gov/opa/pr/bassett-mirror-company-agrees-pay-105-million-settle-false-claims-act-allegations-relating. Similarly, textile importer American Dawn Inc. agreed to pay over $2.3 million to resolve allegations that it intentionally misclassified goods imported into the United States, such as bath and shop towels as polishing cloths, in order to pay lower tariff rates. https://www.justice.gov/usao-ndga/pr/textile-importer-resolves-false-claims-act-allegations-0.
And in a matter illustrating the government’s continuing efforts to hold accountable those who seek to take improper advantage of a program that allows companies to remove gas from federal lands upon payment of royalties to the federal government, Citation Oil & Gas Corp. and its affiliates, Citation 2002 Investment Limited Partnership and Citation 2004 Investment Limited Partnership, paid $2.25 million to resolve allegations that they underpaid royalties owed on natural gas produced from federal lands in Wyoming. https://www.justice.gov/opa/pr/citation-companies-agree-pay-225-million-settle-civil-false-claims-act-allegations.
Holding Individuals Accountable
The Department continued its commitment to use the False Claims Act and other civil remedies to deter and redress fraud by individuals as well as corporations. For example, after a two-week jury trial, the Department obtained judgments totaling more than $114 million against three individuals who were found to have paid physicians illegal remuneration disguised as “handling fees” of between $10 and $17 for each patient they referred to two blood testing laboratories: Health Diagnostic Laboratory of Richmond, Virginia (HDL), and Singulex Inc., of Alameda, California (Singulex). The government also introduced evidence at trial that this kickback scheme resulted in physicians referring patients to HDL and Singulex for medically unnecessary tests, which were then billed to federal health care programs. https://www.justice.gov/opa/pr/united-states-obtains-114-million-judgment-against-three-individuals-paying-kickbacks.
In another kickback case, based on the jury’s verdict for the United States, the court awarded judgment of $5.5 million against neurosurgeon Dr. Sonjay Fonn, his fiancé Ms. Deborah Seeger, and their professional corporations DS Medical and Midwest Neurosurgeons. The evidence showed that Dr. Fonn performed spinal fusion surgery using implants for which his fiancé received commissions, which were used to benefit Dr. Fonn in the form of lavish purchases such as a yacht and home improvements. https://www.justice.gov/usao-edmo/pr/federal-judge-trebles-damages-and-imposes-civil-penalties-against-cape-girardeau.
In addition, former professional cyclist Lance Armstrong paid $5 million to resolve a lawsuit alleging that his admitted use of performance-enhancing drugs and methods (PEDs) resulted in the submission of millions of dollars in false claims for sponsorship payments to the U.S. Postal Service (USPS), which sponsored Armstrong’s cycling team during six of the seven years Armstrong was deemed the winner of the Tour de France. The lawsuit alleged that Armstrong and his team regularly and systematically employed PEDs, that Armstrong made numerous false statements denying his PED use, and that Armstrong took active measures to conceal his PED use during the USPS sponsorship and even after the sponsorship ended. https://www.justice.gov/opa/pr/lance-armstrong-agrees-pay-5-million-settle-false-claims-allegations-arising-violation-anti.
Prime Healthcare Services Inc., Prime Healthcare Foundation Inc., and Prime Healthcare Management Inc. (collectively “Prime”), and Prime’s Founder and Chief Executive Officer, Dr. Prem Reddy, paid $65 million to settle allegations that 14 Prime hospitals in California knowingly submitted false claims to Medicare by admitting patients who required only less costly, outpatient care and by billing for more expensive patient diagnoses than the patients had. Dr. Reddy paid $3.25 million of the overall settlement. https://www.justice.gov/opa/pr/prime-healthcare-services-and-ceo-pay-65-million-settle-false-claims-act-allegations. Dr. Arthur S. Portnow of Sarasota, Florida, the owner and operator of Arthur S. Portnow, P.A., d/b/a Apple Medical and Cardiovascular Group, d/b/a Apple Medical Group, agreed to pay $1.95 million to resolve allegations that he and his practice violated the False Claims Act by knowingly seeking reimbursement for medically unnecessary ultrasound tests that were performed on Medicare beneficiaries. The government also alleged that Dr. Portnow falsified patient records in an effort to justify those unnecessary ultrasounds. https://www.justice.gov/usao-mdfl/pr/sarasota-physician-agrees-pay-195-million-resolve-false-claims-act-allegations. Dr. Michael Frey, M.D., a pain management specialist and one of the two principal owners of Advanced Pain Management Specialists P.A. in Fort Myers, Florida, agreed to pay $2.8 million to resolve allegations that he violated the False Claims Act in a number of ways, including receiving illegal kickbacks and by ordering medically unnecessary laboratory tests. https://www.justice.gov/usao-mdfl/pr/fort-myers-pain-management-physician-pleads-guilty-healthcare-offenses-and-agrees-28.
Recoveries in Whistleblower Suits
Of the $2.8 billion in settlements and judgments reported by the government in fiscal year 2018, over $2.1 billion arose from lawsuits filed under the qui tamprovisions of the False Claims Act. During the same period, the government paid out $301 million to the individuals who exposed fraud and false claims by filing these actions.
The number of lawsuits filed under the qui tam provisions of the Act has grown significantly since 1986, with 645 qui tam suits filed this past year – an average of more than 12 new cases every week.
“Whistleblowers have played a vital role in unmasking fraudulent schemes that might otherwise evade detection,” said Assistant Attorney General Jody Hunt. “The taxpayers owe a debt of gratitude to those who often put much on the line to expose such schemes.”
In 1986, Senator Charles Grassley and Representative Howard Berman led the successful efforts in Congress to amend the False Claims Act to, among other things, encourage whistleblowers to come forward with allegations of fraud. In 2009 and 2010, additional improvements were made to the False Claims Act and its whistleblower provisions. Congress also included in the False Claims Act authority for the government to dismiss cases, and during the past year the government made increasing use of this tool to help prioritize the use of government resources.
Finally, Assistant Attorney General Hunt commended the many dedicated public servants throughout the Department’s Civil Division and the U.S. Attorneys’ Offices, as well as the agency Offices of Inspector General and the many other federal and state agencies that contributed to the Department’s False Claims Act recoveries this past fiscal year. “The accomplishments announced today would not have been possible but for the hard work of the men and women throughout the government who work tirelessly to protect the interests of taxpayers,” said Assistant Attorney General Jody Hunt. “I have served in the Civil Division for many years and it is now my great honor to lead this Division. I am grateful to work alongside so many passionate, dedicated, and talented employees who have committed their careers to serving the American people and defending the interests of our great nation.”
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Except where indicated, the government’s claims in the matters described above are allegations only and there has been no determination of liability. The numbers contained in this press release may differ slightly from the original press releases due to accrued interest.
Justice Department Files Statement of Interest in Student Group’s First Amendment Case Against University of IowaRead the Press Release
The Justice Department today filed a Statement of Interest in the U.S. District Court for the Southern District of Iowa supporting the claim of a student group, Business Leaders in Christ, that the University of Iowa violated its First Amendment rights when it de-registered the group for requiring its student group leadership to sign a statement of faith. The government argues in its Statement of Interest that the University violated BLinC’s First Amendment rights to free association and free speech.
“As the Department of Justice has repeatedly emphasized over the last two years, public universities are legally required by to protect the First Amendment rights of students,” said Principal Deputy Associate Attorney General Jesse Panuccio. “Unfortunately, too many schools are ignoring their legal obligations—and they are also undermining the very purpose of a university education, which is to advance learning through a free and robust exchange of ideas. The American people expect that their tax dollars will fund administrators and faculty who respect the Constitution. The Department of Justice will continue to get involved in these kinds of cases until this alarming trend is reversed.”
“The First Amendment freedoms of association, speech, and religion prohibit public colleges and universities from suppressing the expression and beliefs of student groups that officials disagree with,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The University of Iowa in this case de-registered Business Leaders in Christ because university officials did not like its message. That is forbidden by the Constitution.”
The case, Business Leaders in Christ (BLinC) v. University of Iowa, involves a Christian student group at the University of Iowa Tippie School of Business, Business Leaders in Christ (BLinC). University policies prohibit student groups from discriminating on a wide range of bases, including sexual orientation and gender identity. BLinC puts no limitations on regular general membership, but requires group leadership to sign and abide by its statement of faith, including a belief that sexual relations should only occur between a husband and wife. The University acknowledged that BLinC did not discriminate against anyone who wanted to sign and abide by the statement of faith, regardless of sexual orientation or gender identity. However, the University claims that BLinC’s statement of faith makes LGBT persons unwelcome and therefore excludes them. However, the University freely admits that it allows registered student organizations to express viewpoints on sexual relationships and gender identity that differ from BLinC’s viewpoint.
Due to the University’s disagreement with BLinC’s statement of faith, the University de-registered BLinC, stripping it of the right to participate in the student activity fair, use the university website, or use university space for meetings and events on an equal basis with other student groups. BLinC filed a lawsuit in December 2017.
The United States’ Statement of Interest argues that the University’s treatment of BLinC violated the Constitution in three ways. First, the University violated BLinC’s right of expressive association, which forbids exclusion of groups on the ground that officials find their views abhorrent. Second, that the University discriminated against BLinC based on its views on sexuality in violation of the fundamental free-speech principle the keeps the government from discriminating based on differing viewpoints. Finally, the government argues that it violated BLinC’s rights under the Free Exercise Clause of the First Amendment by discriminating against its religious beliefs.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned this week before U.S. Magistrate judges and indictments handed down by the Grand Jury were unsealed. Indictments are merely accusations and defendants are presumed innocent until proven guilty:
Appearing on Dec. 18 before U.S. Magistrate Judge John T. Johnston in Great Falls and pleading not guilty was:
WILLARD WILSON WHITE III, 43, on charges of wire fraud; theft from an Indian tribal organization; and income tax evasion. If convicted of the most serious crime, White faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the Fort Peck Tribes’ Department of Law and Justice and U.S. Department of Interior’s Office of Inspector General. Pacer case reference. 18-97.
Appearing on Dec. 20 before U.S. Magistrate Judge John T. Johnston in Great Falls and pleading not guilty was:
KARINA VICTORIA RUIZ-ROSALES, 24, of Los Angeles, Calif., on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Ruiz-Rosales faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Russell Country Drug Task Force. Pacer case reference. 16-36.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Immigration Lawyer Agrees to Plead Guilty to Visa FraudRead the Press Release
SANTA ANA, California – A Laguna Beach attorney has admitted in court documents that she submitted dozens of fraudulent visa petitions to federal immigration authorities and failed to report the money generated by her fraud to the Internal Revenue Service.
In a plea agreement filed on Wednesday, Mihae Park, 53, agreed to plead guilty to two felony offenses – one count of visa fraud and one count of filing a false tax return. Park is scheduled to make her initial appearance in United States District Court on January 14.
According to her plea agreement, Park submitted at least 25 immigrant and non-immigrant work visa petitions to U.S. Citizenship and Immigration Services that contained false information. Among other things in the fraudulent petitions filed between 2000 and 2017, Park listed an alias – Michelle Park – as the petitioner’s employer contact, stated petitioners had employees who were actually deceased or retired people, used bogus Social Security numbers for employees of petitioners, and submitted fake tax returns for work visa petitioners.
In 2013, Park submitted two fraudulent petitions on behalf of an Orange County educational company for two people she claimed would work there as a Chinese language teacher and as a music instructor, according to court documents. In reality, the company did not know or hire the two work visa beneficiaries, and the company did not offer classes in Chinese language or music, according to Park’s plea agreement.
Park also admitted filing false tax returns for the years 2009 through 2014 by failing to report receipts totaling $763,418 for this time period. As a result of her underreporting of her business income, Park had a deficiency in her federal income tax returns totaling $266,988 over this six-year period.
The government has seized $292,482 that Park received for the filing of fraudulent visa petitions, and also seized a 2012 Ferrari California and a 2015 Volkswagen GTI that Park purchased with the visa fraud proceeds, court papers state.
Once she pleads guilty to the two offenses, Park will face a statutory maximum sentence of 10 years in federal prison on the visa fraud charge and up to three years’ imprisonment on the tax charge.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Citizenship and Immigration Services, and the IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Lawrence Kole of the Santa Ana Branch Office.
Illegal Alien Pleads Guilty to Transporting Minor for Sexual PurposesRead the Press Release
NORFOLK, Va. – A Honduran man who illegally entered the United States pleaded guilty yesterday to transportation of a person for criminal sexual purposes.
“Our office is committed to protecting the most vulnerable victims of our society,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We have a long history of making these cases a priority and will continue to work closely with our local and state partners to ensure that our most vulnerable victims receive the justice and protections they rightfully deserve.”
According to court documents, Carlos Arturo Rodezno-Quintanilla, 52, started sexually abusing Jane Doe when she was 4 years old. In June, Rodezno-Quintanilla came to Florida from Honduras with the now 13-year-old minor. From there, the two traveled to Norfolk, where Rodezno-Quintanilla continued to sexually abuse the girl. The girl contacted the Norfolk Police Department to report the abuse shortly after arriving in Norfolk. Rodezno-Quintanilla entered the United States illegally in June, was immediately encountered by immigration officers, and was on supervision while waiting further court proceedings. Rodezno-Quintanilla had absconded from supervision when he was found in Norfolk.
Rodezno-Quintanilla pleaded guilty to one count of transportation of a person for criminal sexual purposes, and faces a maximum penalty of 10 years in prison when sentenced on March 26, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 U.S. Attorney’s Offices and the 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.justice.gov/psc
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, and Larry D. Boone, Chief of Norfolk Police, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-166.
Illegal Alien Pleads Guilty to Cocaine Trafficking and Firearms ChargesRead the Press Release
ALEXANDRIA, Va. – An illegal alien with a prior felony drug trafficking conviction pleaded guilty today to cocaine trafficking and firearms charges.
According to court documents, Homero Salgado Alvarez, 46, a Mexican national, was a cocaine supplier residing in Sanford, North Carolina. Alvarez admitted to supplying a co-conspirator with quantities of cocaine, which the co-conspirator would transport from North Carolina back to the greater Washington, DC area. The co-conspirator sold approximately 3/4 kilogram of cocaine he acquired from Alvarez to undercover law enforcement.
Although Alvarez worked at an apparently legitimate business that includes a used tire retail shop, Alvarez and his co-defendants used the term “tires,” as well as other coded language, to communicate about their drug trafficking activities in order to conceal them from law enforcement. When Alvarez was arrested in October, law enforcement found approximately three kilograms of cocaine hidden in Alvarez’s washing machine and bathroom. Agents also discovered a handgun, which Alvarez has admitted to possessing for protection when conducting his cocaine trafficking business.
Alvarez pleaded guilty to one count of conspiracy to distribute 500 grams or more of cocaine and one count of possession of a firearm in furtherance of a drug trafficking offense. Based on his prior drug trafficking conviction and the charges to which he pleaded guilty, Alvarez faces a mandatory minimum of 15 years in prison when sentenced on April 5, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Tomb Stone. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
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 a 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge of the Criminal Division at the Washington Field Office, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Barry M. Barnard, Chief of Prince William County Police, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorney Katherine E. Rumbaugh is prosecuting the case, with significant assistance from Special Assistant U.S. Attorney Gwendelynn Bills.
This investigation was led by FBI Washington Field Office’s Safe Streets/HIDTA Task Force. The Task Force is composed of FBI Agents along with investigators from the Prince William County Police, the Fairfax County Police, the Loudoun County Sheriff’s Office, Leesburg Police Department, Alexandria City Police, Vienna Police, Herndon Police and ICE. Significant assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, FBI’s Charlotte Field Office, DEA’s Greensboro Resident Agency, and the Police Departments of Sanford, North Carolina and Fayetteville, North Carolina.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:18-CR-380 and 1:18-CR-470.
Houma Man Sentenced in Methamphetamine-Trafficking ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that GARRET TEMPLETON, age 33, of Houma, was sentenced Wednesday, December 19, 2018 after previously pleading guilty to participating in a methamphetamine distribution conspiracy throughout the New Orleans area. Specifically, TEMPLETON pleaded guilty to conspiring to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine, in violation of 21 U.S.C. '' 841(a)(1), 841(b)(1)(A) and 846.
U.S. District Judge Ivan L.R. Lemelle sentenced TEMPLETON to five years’ incarceration, followed by five years of supervised release.
According to court documents, during the timeframe of this conspiracy, codefendant Steven LYONS was a major methamphetamine distributor in the New Orleans area. LYONS obtained methamphetamine by U.S. Mail and other means from several sources, including codefendants Carlos Mario CANTU-COX and Christopher CANTU-COX in Texas (who also supplied Anna THOMPSON); Eric WILLIS in Texas; Trung PHAM in California; and TEMPLETON in Louisiana. Codefendants Tommy WELLS, Clark McALPIN, Dwayne CLAUSE, and Dawn CONRAVEY acted as sellers or brokers of methamphetamine for LYONS in the New Orleans area.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, Louisiana State Police, Amtrak Police, and St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.
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Honduran National Charged with Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that RICARDO MACHADO-BACA, age 25, a citizen of Honduras, was charged yesterday in a one-count bill of information with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326(a).
According to the bill of information, RICARDO MACHADO-BACA reentered the United States on or about November 13, 2018, after having been previously removed therefrom on or about March 10, 2017.
If convicted, RICARDO MACHADO-BACA faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Hartford Meth Dealer Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that MICHAEL BOBOWSKI, 43, of Hartford, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court to one count of conspiracy to possess with intent to distribute, and to distribute, d-methamphetamine hydrochloride, also known as “ice” and other street names.
According to court documents and statements made in court, in August and September 2018, investigators conducted two controlled purchases of methamphetamine from Bobowski at his Whitney Street residence. The investigation revealed that, between May and October 2018, Bobowski conspired to distribute between 100 and 150 grams of d-methamphetamine hydrochloride.
Bobowski was arrested on a federal criminal complaint on October 4, 2018.
Bobowski is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on March 14, 2019, at which time he faces a maximum term of imprisonment of 40 years. He is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, Internal Revenue Service – Criminal Investigation Division, and Middletown Police Department, with the assistance of the U.S. Postal Inspection Service. The DEA Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby and Middletown Police Departments, the U.S. Marshals Service and the IRS – Criminal Investigation Division.
This case is being prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
Habitual Offender Sentenced for Domestic AssaultRead the Press Release
United States Attorney Joe Kelly announced today that William A. Smith, age 31, of Winnebago, Nebraska, was sentenced for Domestic Assault by a Habitual Offender. United States District Court Judge Robert F. Rossiter, Jr., sentenced Smith to a 30-month term of imprisonment. After his release from prison, Smith with begin a 3-year term of supervised release.
On March 22, 2018, Smith assaulted his domestic partner on the Winnebago Indian Reservation by biting her finger causing significant pain and bleeding and fear of having a portion of her finger being bitten off.
This case was investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigation.
Former Social Security Employee of West Sacramento and North Carolina Man Indicted on Conspiracy and Fraud ChargesRead the Press Release
SACRAMENTO, Calif. — On Thursday, a federal grand jury returned a 13-count indictment against Eric Lemoyne Willis, 42, of West Sacramento, and Darron Dimitri Ross, 33, of Charlotte, North Carolina, charging them with conspiracy to defraud and commit crimes against the United States, theft of government property, aggravated identity theft, and wire fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, Willis and Ross allegedly conspired to steal public money from the Social Security Administration (SSA). Willis worked as an SSA Operation Supervisor in Sacramento and Lodi from 2015 until his departure in January 2018. During this timeframe, Willis used his authority as an SSA employee to access the confidential Social Security records of numerous Social Security beneficiaries. These records contained personally identifiable information (PII) including names, addresses, social security numbers, dates of birth, account numbers, family information, and benefit payment amounts. Willis would seek out PII for beneficiaries who used direct deposit for payment of large benefits. Willis then gave this PII to Ross who resided in North Carolina.
Ross’s role in these crimes included calling numerous SSA field offices across the country and using the stolen PII to impersonate the beneficiaries. Ross also opened at least 44 online bank accounts under fraudulent identities to receive diverted SSA benefit payments. If Ross succeeded in convincing an SSA representative that he was the beneficiary, he would request that the beneficiary’s direct deposit account be changed to one of Ross’s fraudulent accounts. The SSA then proceeded to deposit benefit payments into Ross’s account until the fraud was detected. Ross was then free to withdraw the funds at ATMs and spend the money using debit cards. Ross also transferred a portion of the stolen proceeds to Willis for his participation in these crimes.
SSA has identified at least 148 beneficiaries targeted by these crimes, and the total fraud loss suffered by SSA has exceeded $450,000. Willis and Ross spent the proceeds of their crimes on, among other things, trips to Las Vegas and luxury items including Rolex watches.
This case is the product of an investigation by the Social Security Administration – Office of the Inspector General and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Federal agents arrested Willis and Ross last week based on a criminal complaint. Willis was released on bond in Sacramento, and Ross was detained pending his appearance in the Eastern District of California.
If convicted of wire fraud, Willis and Ross face a maximum statutory penalty of 20 years in prison and a $250,000 fine. If convicted of aggravated identity theft, they each face a mandatory sentence of two years in prison consecutive to any other sentence imposed. The maximum sentence for theft of government property is 10 years in prison and a $250,000 fine. The maximum sentence for conspiracy is five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Pasco County Assistant Principal Pleads Guilty to Producing, Distributing, and Possessing Child PornographyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Kyle Dale Ritsema (36, Land O’ Lakes) today pleaded guilty to producing, distributing, and possessing child pornography. Ritsema faces a minimum mandatory of 15 years, and up to 30 years, for producing child pornography, a minimum mandatory term of 5 years, and up to 20 years, in federal prison for each of the two child pornography distribution charges, and a maximum penalty of 10 years’ imprisonment for the possession charge. In total, Ritsema faces up to 80 years in federal prison. A sentencing date has not yet been set.
According to
court documents , starting at least as early as November 2014 until his arrest in February 2018, Ritsema enticed a 14-year-old child on the internet application “Grindr.” Ritsema knew that the boy was a minor during the time when they were in contact. Ritsema met the child in person and had sex with him on at least five occasions over the course of approximately one year. On one such occasion, Ritsema had sex with the child and used his smartphone to take several explicit photos of the child. That same day, Ritsema shared graphic details of that encounter and transmitted the explicit photos to multiple other individuals.Beginning in March 2017, and continuing until his arrest in this case, Ritsema had been an Assistant Principal (Vice Principal) at Cypress Creek Middle High School in Pasco County. Before holding that position, Ritsema was the Assistant Principal at Pine View Middle School (appointed in July 2015), an Assistant Principal Administrative Intern at River Ridge Middle School (appointed in January 2015), and a math teacher and math coach at Paul R. Smith Middle School, Gulf Highland Elementary School, and Seven Springs Middle School (beginning in 2006).
This investigation has revealed that there may be multiple child victims as well as a public health concern. Any person who had unprotected sexual contact with Ritsema, or any person who was, or knows of someone who may have been, a possible child victim is urged to contact Homeland Security Investigations at 1-866-DHS-2ICE or http://www.ice.gov/webform/hsi-tip-form.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations with assistance from the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Frank Murray.
Former Local Doctor, Nurse, and Three Others Charged with Illegally Distributing Controlled SubstancesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that five defendants were charged by criminal complaint with conspiracy to possess with intent to distribute, and distribution of, oxycodone, hydrocodone, amphetamine, and buprenorphine, all Schedule II controlled substances, and carisoprodol, alprazolam, phentermine, tramadol, and zolpidem tartrate, all Schedule IV controlled substances. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Named in the complaint are:
• Dr. James T. Keefe, 38, of Florida;
• Benjamin Rivera, 40, of Buffalo, NY;
• Laura Ricotta, 27, of Williamsville, NY;
• Takeya Rainey, 43, of Buffalo, NY;
• Phousavath Luangrath, 29, of Buffalo, NY.Assistant U.S. Attorneys Timothy C. Lynch and Joshua Violanti, who are handling the case, stated that according to the complaint, Dr. Keefe is a New York State licensed physician who was previously employed as a contracted physician at the Erie County Medical Center (ECMC), Mercy Hospital of Buffalo, and the Monsignor Carr Institute. In February 2018, the Drug Enforcement Administration began investigating the drug diversion and fraudulent prescription activities of Keefe. On March 6, 2018, after previously being questioned by DEA investigators regarding the issuance of fraudulent prescriptions, Dr. Keefe voluntarily surrendered his DEA Registration, preventing him from continuing to issue any prescriptions for controlled substances.
During the investigation, Dr. Keefe admitted to law enforcement officers to being active user of cocaine, Adderall, and prescription opiates, and to writing false prescriptions to some “friends,” and sharing the prescriptions.
While employed at ECMC, and even after he was terminated, Dr. Keefe issued controlled substance prescriptions to four coworkers, all medical professionals, including co-defendant Phousavath Luangrath, a nurse at ECMC. Luangrath is Dr. Keefe’s ex-girlfriend. Records show that Dr. Keefe issued Luangrath 10 prescriptions of Adderall, a Schedule II controlled substance, between February 2, 2017, and December 21, 2017, totaling 420 dosage units. Of the 10 prescriptions, three were issued after Dr. Keefe was terminated from ECMC.
Records also show that between April 20, 2015, and February 20, 2018, Dr. Keefe issued defendant Ricotta 15 prescriptions for Schedule II controlled substances, including dextroamphetarnine, oxycodone-acetaminophen, hydrocodone-acetaminophen, and carisoprodol, a Schedule IV controlled substance, totaling 535 dosage units. The prescriptions were issued in her name or the names of her relatives. In addition, Dr. Keefe wrote seven prescriptions for Ricotta’s boyfriend, Benjamin Rivera, for Schedule II controlled substances, including dextroamphetamine, oxycodone-acetaminophen, hydrocodone-acetaminophen, and carisoprodol, a Schedule IV controlled substance, from December 17, 2017, through February 17, 2018, totaling 290 dosage units.
Defendant Takeya Rainey was issued 14 prescriptions by Dr. Keefe for dextroamphetamine and oxycodone, both Schedule II controlled substances, as carisoprodol and alprazolam, both Schedule IV controlled substances, from between September 18, 2017, and February 15, 2018, totaling 1,380 dosage units.According to the complaint, Dr. Keefe issued 178 fraudulent prescriptions, totaling 9,718 dosage units.
“For the second time this week, a medical professional with an addiction problem has found himself on the wrong side of the law,” stated U.S. Attorney Kennedy. “Where, as here, a physician ignores his Hippocratic Oath to ‘do no harm,’ but instead sells out his medical license for personal or financial gain, my Office will do all that we can to see that strong consequences follow.”
DEA Special Agent-in-Charge Ray Donovan stated, “This sentence sends a message that there is no place in medicine for doctors to prescribe medications for no medical purpose. Opioid addiction is the leading cause of overdoses nationwide and law enforcement is doubling down on rogue doctors as well as drug trafficking organizations to stop the opioid flow on our streets.”
Dr. Keefe made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer and was released on conditions. Defendants Rivera, Ricotta, Rainey, and Luangrath made an initial appearance on December 19, 2018. Defendants Rainey, Ricotta, and Luangrath were released, defendant Rivera was detained.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan.
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Former Government Consultant Indicted on Federal Charges in Bribery and Fraud SchemeRead the Press Release
WASHINGTON – A consultant and independent contractor for a company that did business with the District of Columbia Department of Human Resources was indicted today on charges that he paid more than $140,000 in bribes to a former D.C. government employee and that he stole payments on city contracts that should have gone to his employer.
John Woods, 56, of Sterling, Va., was indicted by a grand jury in the U.S. District Court for the District of Columbia on three counts of wire fraud, four counts of mail fraud, one count of bribery, and two counts of engaging in illegal monetary transactions. The indictment also includes a forfeiture allegation seeking all proceeds of the alleged crimes. Woods will be arraigned on the charges on a date to be determined by the Court.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and District of Columbia Inspector General Daniel W. Lucas.
According to the indictment, Woods worked as a consultant and independent contractor for a firm identified in the court documents as “Company A.” The firm had agreements with the District of Columbia Department of Human Resources (DCHR) to provide organizational skills training courses and human resources consulting to various D.C. government agencies. Woods was the company’s main point of contact with DCHR and handled the submission of invoices.
The indictment alleges that, beginning in April 2013, and continuing through August 2017, Woods schemed to defraud “Company A” and the D.C. government.
As part of the scheme, according to the indictment, between April 2013 and February 2015, Woods stole $214,910 in D.C. government checks that were issued to “Company A.” Beginning in March 2015, the indictment alleges, Woods began usurping “Company A’s” role under the contracts and keeping the profits for himself. The indictment alleges that Woods fraudulently deposited approximately 27 checks issued by the D.C. government to “Company A” into a bank account he controlled, totaling approximately $1,040,023, from March 2015 through August 2017.
In order to keep his scheme in place, the indictment alleges that Woods paid more than $140,000 in bribes to Latasha Moore, then a DCHR employee. As a resource allocation analyst, Moore was the main point of contact for “Company A” and in a position to ensure that no complaints or suspicions about the contracts reached others in the government. For example, Moore failed to report problems that arose while Woods was managing the work, including complaints of contractors arriving late, leaving early or failing to show up at all for training.
Moore, 38, of Washington, D.C., pled guilty on Oct. 11, 2018 to a federal bribery charge. She is awaiting sentencing.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
Mail fraud and wire fraud charges carry statutory maximum of 20 years in prison. The bribery charge carries a statutory maximum of 15 years in prison, and the charge involving illegal monetary transactions carries a statutory maximum of 10 years. The charges also carry potential financial penalties. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the FBI’s Washington Field Office and Office of the Inspector General of the District of Columbia. It is being prosecuted by Assistant U.S. Attorney Michael Marando, of the U.S. Attorney’s Office for the District of Columbia.
Former Custer County High School athletic trainer charged with coercionRead the Press Release
BILLINGS—An indictment filed today in U.S. District Court charges former Custer County High School athletic trainer James “Doc” Jensen, of Miles City, with coercion and enticement of minors to engage in sexual activity, U.S. Attorney Kurt G. Alme announced.
If convicted of the crime, Jensen, 78, faces a maximum 15 years in prison, a $250,000 fine and three years of supervised release.
The indictment is merely an accusation. Jensen remains innocent until proven guilty.
The indictment charges that beginning in 1995 and continuing until about 1999 in Miles City, Jensen used means of interstate commerce, including the Internet, to entice and coerce an individual who he believed was a minor to engage in sexual activity.
Chief U.S. District Judge Dana L. Christensen is assigned to the case.
Assistant U.S. Attorneys Zeno Baucus and Bryan Dake are prosecuting the case, which is being investigated by the FBI and Montana Department of Justice’s Division of Criminal Investigation.
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Former Corsica Borough Secretary/Treasurer Indicted on 26 Fraud ChargesRead the Press Release
PITTSBURGH, PA - A resident of Corsica, Jefferson County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of wire fraud, United States Attorney Scott W. Brady announced today.
The 26-count Indictment, returned on Dec. 18 and unsealed today, named Tammy Laird, 46, as the sole defendant.
According to the Indictment presented to the court, from January 2009 through August 2017, while Laird was employed as the Secretary and Treasurer of Corsica Borough, she defrauded the borough of more than $300,000, by issuing checks from the borough’s bank accounts to her father, her husband, and herself, by extracting funds from the borough’s bank accounts to pay personal expenses and credit card bills, and by making personal purchases on the borough’s business account at Staples. To hide her activity, Laird is charged with supplying the Corsica Borough Council and state auditors with altered bank statements and other falsified financial information.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Laird remains on bond pending the resolution of this case.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Chief and President of Briarcliff Manor Fire Department Sentenced to 1 Year in Prison for Embezzling More Than $120,000Read the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that ROBERT GARCIA, the former president and chief of the Briarcliff Manor Fire Department (“BMFD”), was sentenced today by U.S. District Judge Cathy Seibel to one year and one day in prison for charges arising out of his embezzlement of more than $120,000 from the BMFD. GARCIA pled guilty before Judge Seibel on July 2, 2018, to one count of embezzlement from a program receiving federal funds.
U.S. Attorney Geoffrey S. Berman said: “Robert Garcia lined his pockets with Briarcliff Manor Fire Department and Fire Council money to pay personal expenses, and then lied about it to cover his tracks. Now Garcia will go to prison for his crime.”
According to documents filed in court, GARCIA was elected to the position of Second Assistant Chief of the BMFD in or about April 2013. His election to that position also made him an officer of the Briarcliff Manor Fire Council, which oversees the Briarcliff Manor Fire Department. GARCIA was thereafter elected to different administrative and operational positions within the BMFD, including first assistant chief, chief, treasurer and president. As a result, GARCIA was also an officer of the Fire Council from in or about April 2013 through in or about April 2017. GARCIA was given signatory authority over bank accounts held by the Fire Council and the BMFD starting in April 2013.
From in or about May 2013 to in or about March 2017, GARCIA embezzled money from the BMFD and the Fire Council by writing checks drawn on the BMFD's and Fire Council's bank accounts that he made payable to himself. GARCIA then deposited these checks into his personal bank accounts. He used the embezzled proceeds to pay personal expenses. GARCIA covered up his thefts by making material misstatements on written reports he gave to the Fire Council about the purposes and payees of the checks he had written to himself when he acted as the BMFD’s treasurer from in or about 2014 through in or about April 2017. GARCIA embezzled more than $120,000 from the BMFD and the Fire Council by writing approximately 150 checks to himself.
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In addition to the prison sentence, GARCIA, 51, of Ossining, New York, was sentenced to two years of supervised release and assessed a $20,000 fine. GARCIA paid full restitution to the BMFD prior to sentencing.
Mr. Berman praised the outstanding investigative work of the IRS, FBI, New York State Comptroller, and New York State Police.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
Former Arts Center Director Sentenced to 18 Months in Prison for Wire and Tax FraudRead the Press Release
PANAMA CITY, FLORIDA – Vicki Dyer Middlemas, 49, of Panama City, was sentenced Thursday in the U.S. District Court in Tallahassee to 18 months in prison after pleading guilty to wire and tax fraud on August 2. She was ordered to pay $44,696.00 in restitution. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Between May 2010 and May 2015, Middlemas used her position as Executive Director of the Visual Arts Center of Northwest Florida (“the VAC”) in Panama City to fraudulently obtain money by writing herself checks on the VAC bank account and by making unauthorized charges for personal expenses on the VAC debit card. Middlemas falsified invoices and VAC records to conceal her thefts and underreported her income and tax owed.
Middlemas’s personal, unauthorized expenditures from the VAC account included:
- a custom painting of her daughter;
- designer handbags, a dress, a trench coat, and other clothing;
- perfumes;
- air travel tickets to Las Vegas;
- a down payment on annual Walt Disney World park passes for Middlemas and her three daughters;
- Alys Beach vacation home rentals on two occasions;
- tattoos;
- rugs; and
- payment of 27 cellular phone bills for her family.
The tax investigation revealed that the Forms 1040 and 1040X Middlemas filed for the years 2012 through 2015, grossly underreported the income Middlemas earned and embezzled from the VAC.
This case resulted from an investigation by the Internal Revenue Service—Criminal Investigation, the Panama City Police Department, and the IRS Emerald Coast Financial Crimes Task Force. Assistant United States Attorney Aine Ahmed prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Five Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging BRAYAN ALEXANDER FUNEZ-ESPINOZA, age 28, of Mexico, ROMERO FLORES-AGUILAR, age 30, of Mexico, JESUS GARCIA-HERNANDEZ, age 43, of Mexico, RODOLFO ROA-SAUCEDO, age 35, of Mexico, and JUAN ZARAGOZA-ZARAGOZA, age 36, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of illegal reentry of a deported alien, FUNEZ-ESPINOZA, previously deported twice and found in Wake County, FLORES-AGUILAR, previously deported twice and found in Johnston County, GARCIA-HERNANDEZ, previously deported three times and found in Franklin County, ROA-SAUCEDO, previously deported twice and found in Pitt County, and ZARAGOZA-ZARAGOZA, previously deported four times and found in Beaufort County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Felons in Lake Charles and Shreveport prosecuted for illegally possessing firearmsRead the Press Release
LAKE CHARLES/SHREVEPORT La. – United States Attorney David C. Joseph announced one felon pleaded guilty and two were sentenced this week for firearms violations under the Justice Department’s Project Safe Neighborhoods initiative.
Lake Charles felon pleads guilty to unlawfully possessing rifle
LAKE CHARLES, La. – Forrest Cecil Coker II, 33, of Lake Charles, pleaded guilty Monday before U.S. Magistrate Judge Kathleen Kay to one count of felon in possession of a firearm. According to the guilty plea, Calcasieu Parish Sheriff’s deputies searched a Laurel Avenue home to execute a pending felony warrant. Upon searching the home, where Coker was living, deputies found a stolen DPMS Model AR-10, .308-caliber rifle, a small amount of suspected methamphetamine, four suspected Alprazolam pills and two suspected Citalopram pills. Coker’s criminal history revealed that he was a felon, having previously been convicted of felony offenses on three separate occasions in the State of Louisiana’s 14th Judicial District Court.
Coker faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for March 25, 2019.
The ATF and the Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Daniel J. McCoy is prosecuting the case.
Shreveport felon sentenced to 46 months in prison for possessing a loaded pistol
SHREVEPORT, La. – Kevin Summerfield, 26, of Shreveport, was sentenced Wednesday to four years and 10 months in prison by U.S. District Judge Elizabeth E. Foote on one count of felon in possession of a firearm. He was also sentenced to three years of supervised release. According to the September 7, 2018 guilty plea, a Shreveport Police officer encountered Summerfield at a hotel on Monkhouse Drive. The officer observed that Summerfield had a firearm in his waistband, and he was subsequently arrested. The firearm was a Hi-Point, Model CF380, .380-caliber pistol and was loaded with 13 rounds of ammunition. Summerfield was previously convicted of two burglary felonies in 2011 and is not allowed to possess a firearm according to federal law.
The ATF and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan prosecuted the case.
Shreveport felon sentenced to 37 months in prison for possessing pistol in car
SHREVEPORT, La. – Kenneth W. Robinson, 33, of Shreveport, Louisiana, was sentenced Thursday to three years and one month in prison by U.S. District Judge Elizabeth E. Foote on one count of felon in possession of a firearm. He was also sentenced to three years of supervised release. According to the September 7, 2018 guilty plea, law enforcement officers observed Robinson on January 25, 2018 sitting in a vehicle on Dickinson Street. When officers approached, Robinson fled the vehicle on foot to a nearby apartment. Officers saw a Smith & Wesson SW9VE, 9 mm pistol on the driver’s side floorboard where Robinson had been sitting. They also located Robinson’s mobile phone next to the firearm. He was later arrested and admitted that the firearm was his. Robinson was previously convicted of illegal use of a weapon in 2004, possession of a controlled dangerous substance in 2008 and possession of a firearm by a convicted felon in 2013. The felonies restricted him from possessing a firearm under federal law.
The ATF, Caddo-Shreveport Narcotics Unit and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Felon Indicted for Allegedly Stealing Firearms from St. Mary’s County Federally Licensed Firearms DealerRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Robert Jacob Eberle, age 30, of Lexington Park, Maryland, on federal charges including theft of firearms, possession of stolen firearms, and being a felon in possession of firearms. The indictment was returned on December 10, 2018. Eberle is detained and is scheduled to have his initial appearance in U.S. District Court in Greenbelt on December 28, 2018.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and St. Mary’s County Sheriff Tim Cameron.
The indictment alleges that on July 21, 2018, Eberle stole 11 firearms from a federally licensed firearms dealer in St. Mary’s County, Maryland. The guns included seven 9mm-caliber pistols, two .45-caliber pistols, a .40-caliber pistol, and a .380-caliber pistol. According to the indictment, Eberle had a previous felony conviction and was prohibited from possessing firearms.
If convicted, Eberle faces a maximum sentence of 10 years in prison for each count.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and the St. Mary’s County Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Ray D. McKenzie, who is prosecuting the case.
Engineering Firm Agrees to Pay over $5 Million to Settle False Claims Act Allegations Related to Small Business, Veterans Set-AsidesRead the Press Release
LOS ANGELES – IMEG Corp., an engineering and construction services firm, has agreed to pay $5.27 million to settle allegations that one of its predecessor entities defrauded the government by conspiring to submit fraudulent bills related to contracts designated for small businesses and small businesses owned by service-disabled veterans, the Justice Department announced today.
IMEG Corp., headquartered in Rock Island, Illinois, was formed in January 2017 through the merger of engineering firms TTG Corporate and KJWW Corp.
In August 2009, TTG, a large engineering services company, formed a company named TTG Schwab, Inc. – later known as Schwab Engineering, Inc. – with Jerome Schwab, a service-disabled veteran. The federal government, primarily the U.S. Department of Veterans Affairs, awarded Schwab Engineering over a dozen contracts that had been “set aside” for service-disabled, veteran-owned small business (SDVOSB) and small businesses.
On paper, Jerome Schwab was the majority owner, and later the sole owner, of Schwab Engineering. In reality, TTG provided nearly all the staffing and support, including financial and administrative services, for the federal set-aside contracts it was awarded – which violated the rules of the set-aside programs. TTG received up to 95 percent of the fees that Schwab Engineering earned from the SDVOSB and small business set aside contracts, according to the settlement.
Following the TTG-KJWW merger in 2017, IMEG discovered the wrongful conduct, informed the government, and has cooperated with federal authorities in this matter.
The settlement in this matter was finalized today. The claims resolved by the settlement are allegations only; there has been no determination of liability.
The settlement was the result of a coordinated effort by the U.S. Department of Veterans Affairs, Office of Inspector General; the U.S. Small Business Administration, Office of Inspector General; and the U.S. Department of Defense, Defense Criminal Investigative Service.
Assistant United States Attorney Donald Yoo of the Civil Fraud Section represented the government in this matter.
Eight Members of Springfield-to-Vermont Drug Trafficking Organization ChargedRead the Press Release
BOSTON - Eight members of a drug trafficking organization operating between Springfield, Mass., and Barre, Vt., were indicted in federal court in Springfield in connection with a drug conspiracy involving money laundering and illegal firearms trafficking. A Hampden County Superior Court employee was also charged in the indictment.
The following eight individuals were charged in a 24 count superseding indictment unsealed today in connection with a heroin trafficking conspiracy. Each of the defendants were charged with conspiracy to distribute heroin, cocaine, and crack cocaine. Six of the defendants are alleged to have engaged in money laundering offenses, two of the defendants allegedly conspired to engage in the unlicensed dealing of firearms, and a Hampden County Superior Court employee is alleged to have made false statements to federal agents in connection with the investigation. Four of the defendants are already in federal custody having been originally charged and arrested on Jan. 12, 2018; three defendants were arrested today and one is a fugitive.
- Nia Moore-Bush, also known as “Nia Dinzey,” 28, of Springfield, currently in federal custody;
- Dinelson Dinzey, 35, of Springfield, currently in federal custody;
- Jamieson Gallas, 37, of Barre, currently in federal custody;
- Tracy Parsons, 46, of Barre, currently released on conditions pending trial;
- Daphne Moore, 55, of Springfield, was arrested today;
- Oscar Rosario, 33, of Springfield, was arrested today;
- Luis Niko Santos, 24, of Springfield; is a fugitive; and
- Amanda Atkins, 35, of Barre, was arrested today.
According to court documents, the organization was trafficking heroin and cocaine base from Springfield to central Vermont. It is alleged that Moore-Bush and Dinzey obtained narcotics in the Springfield area and transported the narcotics to Vermont themselves or via couriers and distributed the drugs in the Barre area, where drug prices are much higher than in Springfield.
It is further alleged that Moore-Bush, Dinzey, Parsons, Gallas, Moore, and Atkins laundered the proceeds of the drug conspiracy through bank accounts held by Moore in trust for Moore-Bush. The organization allegedly made cash deposits in Vermont, and Moore-Bush and Moore facilitated the withdrawal of those funds from the accounts in Massachusetts. It is further alleged that Moore-Bush and Dinzey conspired to launder drug proceeds through the purchase of an Audi vehicle.
The superseding indictment also alleges that Moore-Bush and Dinzey conspired to engage in the unlicensed dealing of firearms. Moore-Bush allegedly sold two firearms on Feb. 16, 2017, and four firearms on May 5, 2017. Dinzey is charged with the conspiracy and assisting in the May 5, 2017, firearms sale. According to court documents, federal law enforcement traced all six firearms involved in these two sales to individuals connected to Vermont or New Hampshire. Both Moore-Bush and Dinzey are also charged with being felons in possession of the firearms they sold on May 5, 2017, or aiding and abetting that offense. Court records indicate that Dinzey has at least two prior felony drug convictions.
Finally, the superseding indictment charges Moore with making three false statements to federal agents on Jan. 12, 2018. Court records reveal that Moore is Moore-Bush’s mother and an assistant clerk magistrate at Hampden Superior Court in Springfield. Moore-Bush and Dinzey were residing with Moore at the time of their arrest on Jan. 12, 2018. Moore allegedly falsely stated that she did not know where Moore-Bush conducted her banking when, in fact, she knew that Moore-Bush used accounts held in Moore’s name in trust for Moore-Bush. She also falsely stated that she did not know that individuals from Vermont had been at her house and the whereabouts of a black Audi when, in fact, Moore had met and interacted with individuals from Vermont at her home and knew that Moore-Bush had sold the black Audi.
Conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base 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 up to $10 million. Dinzey and Gallas, who each have at least one prior felony drug conviction, face mandatory minimum sentences of 20 years and up to life in prison, a minimum of 10 years of supervised release, and a fine of up to $20 million. The charge of conspiring to distribute and possess with intent to distribute 28 grams or more of cocaine base provides for a mandatory minimum sentence of five years and no greater than 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. For Santos, who has at least one prior felony drug conviction, the narcotics counts against him provide for a sentence of no greater than 30 years in prison, at least six years of supervised release, and a fine of up to $2 million. The narcotics charges against Rosario and Moore provide for sentences of no greater than 20 years in prison, at least three years of supervised release, and a fine of up to $1 million. Each money laundering charge carries 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. The charges of conspiring to engage in the unlicensed dealing of firearms and engaging in the unlicensed dealing of firearms each carry a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of up to $250,000. The charge of making false statements to a federal agent provides for a sentence of up to five 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; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Kristina O'Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Valuable assistance was provided by the Massachusetts State Police, the Vermont State Police, and the Montpelier (VT) and Barre (VT) Police Departments. Assistant U.S. Attorney Katharine A. Wagner of Lelling’s Springfield Branch Office is prosecuting the cases.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dubuque Meth User Who Possessed a Loaded Firearm During “One Man Crime Spree” Sentenced to Federal PrisonRead the Press Release
A man who was convicted of nine crimes committed in the first few months of 2018 was sentenced on December 17, 2018, to more than a year in federal prison.
Patrick Andrew Lugrain, age 22, from Dubuque, Iowa, received the prison term after an August 2, 2018 guilty plea to one count of being an unlawful drug user in possession of a firearm.
In a plea agreement, Lugrain admitted he was using methamphetamine in early 2018. In February 2018, he purchased a .45 caliber pistol from a business in Dubuque. On March 3, 2018, Lugrain was stopped in a traffic stop by Dubuque police and arrested on outstanding warrants. Officers then found a Smith & Wesson .45 caliber pistol loaded with seven rounds and a large number of baggies used for drug packaging in the car. Lugrain later stated he had been living in his car and admitted he possessed the firearm for his own protection.
Court records reflect that at the time he was charged in federal court, Lugrain had fourteen pending criminal cases in the state of Iowa arising from conduct occurring in the first four months of 2018. In December, Lugrain was convicted of eight of those charges, with the remaining charges being dismissed. During an earlier federal court hearing, a federal magistrate judge described Lugrain’s early-2018 behavior as a “one-man crime spree.”
Lugrain was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Lugrain was sentenced to 12 months and 1 day of imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Lugrain was released on the bond previously set and is to surrender to the United States Marshal on December 27, 2018.
The case was investigated by the Dubuque Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives, and prosecuted by Assistant United States Attorney Dan Chatham.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1018-LTS.
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District Teenager Sentenced to 10 ½-Year Prison Term on Carjacking and Armed Robbery ChargesRead the Press Release
WASHINGTON – Deonta King, 17, of Washington, D.C., was sentenced today to a prison term of 10 ½ years on carjacking and armed robbery charges stemming from violent crimes committed this year in Southeast Washington, U.S. Attorney Jessie K. Liu announced.
King, who was 17 at the time of the offenses, was charged as an adult because of the nature of the crimes. He pled guilty in April 2018 in the Superior Court of the District of Columbia. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 10 to 12 years in prison. The Honorable Todd E. Edelman accepted the plea and sentencing King accordingly. Following his prison term, King will be placed on three years of supervised release.
Three co-defendants, all from Washington, D.C., also were charged as adults and pled guilty to charges for their roles in one or both of the crimes. Deandre Bullock, 17, and Darius McNeal, 18, were sentenced earlier this month by Judge Edelman to prison terms of 10 years and nine years, respectively. Javon Coe, 17, is awaiting sentencing.
McNeal, Bullock, King, and Coe pled guilty to an incident that took place shortly after 9 p.m. on Feb. 4, 2018, at the Benco Shopping Center located at East Capitol Street SE and Benning Road SE. According to the government’s evidence, the victim parked his Jeep Compass in front of a carry-out restaurant at the shopping center and went inside the store to pick up food. As the victim returned to his vehicle and got back into the driver’s seat, McNeal, Bullock, King, Coe, and another individual approached his vehicle. McNeal approached the passenger side. Bullock, King, and Coe approached the driver side and worked together to pull the victim from the driver’s seat of his vehicle, drag him to the ground, and assault him. King took the victim’s keys from his hand. Coe, who had a handgun, tried to take the victim’s cellphone, but the victim refused to let go of it. McNeal, Bullock, King, Coe, and another individual got into the victim’s vehicle and drove away.
McNeal, Bullock, and King also pled guilty to an incident that took place at about 6 p.m. on Feb. 18, 2018, near Johnson Middle School in the 3100 block of Bruce Place SE. According to the government’s evidence, McNeal communicated with the victims about buying a pair of shoes through the application OfferUp and told the victims to come to the school. When the victims arrived, McNeal and another member of the group approached them and asked to see the shoes for sale. One of the victims showed the shoes and asked for the money. King and Bullock then approached. Bullock was wearing a mask and had a black and silver handgun with a laser sight on it. Bullock ordered one of the victims out of the car and to the ground at gunpoint. King ordered the other victim out of the driver’s seat of the car, demanded her car keys, and took her phone. One of the victims struggled with Bullock over the gun, while the other defendants told Bullock to “shoot him.” The gun went off, firing one round that hit McNeal in the leg. The victims ran away, and McNeal, Bullock, King, and another individual got into the victims’ vehicle and followed them.
In announcing the sentences, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tiffany Fogle and Victim/Witness Advocate James Brennan. Finally, U.S. Attorney Liu commended Assistant U.S. Attorney Natasha Smalky, who investigated and prosecuted the case with assistance from Assistant U.S. Attorney Jennifer Kerkhoff.
District Court Enters Permanent Injunctions Shutting Down International Mail Fraud Scheme and Approving Civil Penalty of over $700,000Read the Press Release
The U.S. District Court for the Eastern District of New York has permanently barred 10 individuals and businesses from operating an alleged multi-million dollar international mail-fraud scheme. The consent decrees entered by United States District Judge Brian M. Cogan resolve civil fraud claims brought by the United States Attorney’s Office for the Eastern District of New York. Five of the defendants – Kimberly Anne Stamps of Gilbert, Arizona and her companies, KPS Productions, LLC, KPS Promotions, LLC, JKS Ventures, LLC and JJMK Enterprises, LLC – also agreed to pay a $726,539.20 penalty, the largest civil penalty ever collected in the EDNY for a violation of a United States Postal Service (USPS) cease and desist order against a mass mailer.
The United States alleged that beginning as early as 2012, the defendants operated a multi-million dollar mass-mailing scheme that preyed upon elderly and vulnerable individuals. From May 2015 to January 2018, the defendants mailed over 4.8 million solicitation letters to recipients in New York, throughout the United States and abroad falsely indicating that the recipients had won large cash prizes ranging from hundreds of thousands of dollars to millions of dollars, but were required to return processing fees of $20 to $50 to receive payment. The solicitations were sent on behalf of fictitious organizations and departments, such as “Global Servicing Center,” “Premium Award Center,” “Notification Committee” and “Winners Search Advisory,” and included fake signatures from fictitious corporate officers. The victims who paid the processing fees never received the promised cash prizes.
In one month alone, the defendants received over 16,000 responses to their schemes from victims worldwide. One victim of the defendants’ scheme, who resides in Brooklyn, returned more than 400 responses to defendants’ fraudulent solicitations, with total payments exceeding $10,000. The United States estimates that before the scheme was shut down, the defendants received more than $3 million in victim payments annually.
The foregoing are allegations, which the defendants dispute, and there has been no trial or any permanent judicial finding of fact or law.
“The defendants misled elderly and vulnerable victims by promising life-changing cash prizes that never arrived,” stated United States Attorney Donoghue. “The court-ordered injunctions permanently stop these schemes, and the civil penalty should serve as a warning to other fraudulent mass-mailers that we are committed to protecting the public from these schemes, and will hold the perpetrators and enablers of such schemes accountable.” Mr. Donoghue thanked the United States Postal Inspection Service for its investigatory support.
“Sweepstakes mailers thought they were winning the big prize. That is, until Postal Inspectors learned of the misleading solicitations being sent to unsuspecting victims,” stated Melisa Llosa, USPS, Inspector in Charge of the Phoenix Division. “As the law enforcement branch of the Postal Service, the U.S. Postal Inspection Service has a long history of successfully investigating these fraud schemes. Postal Inspectors work tirelessly to protect the American public from exploitation through the U.S. Mail.”
The case is being handled by Assistant U.S. Attorneys Evan P. Lestelle and John Vagelatos.
Additional information on the original enforcement actions and mass mailing schemes is available at: https://www.justice.gov/usao-edny/pr/justice-department-coordinates-nationwide-elder-fraud-sweep-more-250-defendants. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
The Defendants:
KIMBERLY ANNE STAMPS
Age: 42
Gilbert, ArizonaYURIKO ESPINO RAMOS
Age: 30
Mesa, ArizonaBARBARA TRICKLE
Age: 74
Las Vegas, NevadaKPS Productions, LLC
KPS Promotions, LLC
JJMK Enterprises, LLC
JKS Ventures, LLC
YR Mail Services, LLC
Western Mailing Services
Cyber Solutions, Inc.
E.D.N.Y. Docket No. 18-CV-1106 (BMC)Department of Corrections Nurse Arrested on Drug ChargesRead the Press Release
BOSTON – A nurse at the Department of Correction’s Massachusetts Alcohol and Substance Abuse Center (MASAC) in Plymouth, was arrested yesterday and charged with distribution of Suboxone strips to inmates in that facility.
Julie Inglis-Somers, 39, of Kingston, Mass., was arrested yesterday in Jacksonville, Fla. after fleeing the District of Massachusetts last week. She is charged by criminal complaint with one count of distribution of a controlled substance. She will appear for a detention hearing this afternoon in the Middle District of Florida.
According to charging documents, on or about Nov. 18, 2018, and Dec. 4, 2018, Inglis-Somers provided Suboxone to two inmates at MASAC. Suboxone, a Class III controlled substance used to treat heroin addiction, is sometimes misused to get high. Suboxone is a coveted contraband in prisons across the nation and is particularly popular in New England.
MASAC is one of five facilities in Massachusetts where, under Massachusetts General Laws, a state court judge can send a person who the judge has determined to be a danger to self or others due to substance abuse. MASAC is the only such facility overseen by the Massachusetts Department of Corrections.
The charge of distribution of a controlled substance provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $500,000. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Thomas A. Turco III of the Massachusetts Department of Correction made the announcement today. The FBI Jacksonville (FL) Field Division and the Suwannee County (FL) Sheriff’s Office provided assistance with the arrest. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption and Special Prosecutions Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Dallas Man Sentenced in Methamphetamine-Trafficking ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that MICHAEL LEVERIDGE, age 45, of Dallas, Texas, was sentenced yesterday after previously pleading guilty to participating in a methamphetamine distribution conspiracy throughout the New Orleans area. Specifically, LEVERIDGE pleaded guilty to conspiring to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine, in violation of 21 U.S.C. '' 841(a)(1), 841(b)(1)(A) and 846.
U.S. District Judge Jane Triche Milazzo sentenced LEVERIDGE to 84 months’ incarceration, followed by five years of supervised release.
According to court documents, in 2014, during the New Orleans Decadence Festival, LEVERIDGE traveled to New Orleans with approximately 21 ounces (over one-half kilogram) of a mixture containing methamphetamine. LEVERIDGE intended to resell the methamphetamine in the New Orleans area. Agents recovered the 21 ounces of methamphetamine, along with other contraband, during a search pursuant to a warrant of LEVERIDGE’s room at the Bourbon Orleans Hotel in the French Quarter over Decadence Festival weekend.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration’s Gulf Coast High Intensity Drug Trafficking Area (HIDTA) Program. The DEA’s HIDTA Group #11, operating out of the New Orleans Field Division, includes members of the Louisiana State Police, Jefferson Parish Sheriff’s Office, and other local agencies. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
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Covington Man Pleads Guilty to Possessing and Making SilencersRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ROBERT LYONS, age 33, of Covington, has pleaded guilty yesterday to federal firearms violations.
According to court documents, on March 3, 2017, LYONS possessed firearm silencers that were not registered to him in the National Firearms Registration and Transfer Record (“NFRTR”), in violation of Title 26, United States Code, Sections 5841, 5861(d), and 5871. LYONS also made firearm silencers without obtaining prior approval from the federal government or paying the requisite tax, in violation of in violation of Title 26, United States Code, Sections 5822, 5861(f), and 5871.
The Court set sentencing in this matter for March 21, 2019. LYONS faces, as to each count of the indictment, a maximum term of imprisonment of 10 years, a fine of $10,000, up to three years per count of supervised release after imprisonment, and a $100 special assessment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U. S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. The case is being prosecuted by Assistant United States Attorneys Maria M. Carboni.
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