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Wednesday 19 December 2018
Eight Dallas-Area Pharmacy Owners and Marketers Charged in $9 Million Kickback SchemeRead the Press Release
Eight Dallas-area pharmacy owners and marketers were charged in an indictment unsealed today for their roles in a scheme involving approximately $92 million in compound drug claims to TRICARE and the U.S. Department of Labor (DOL), which were allegedly the product of over $9.1 million in illegal kickbacks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service (DCIS) Southwest Field Office, Special Agent in Charge Steven Grell of the U.S. Department of Labor - Office of Inspector General’s (DOL-OIG) Dallas Region and Special Agent in Charge CJ Porter of the Office of Inspector General for the U.S. Department of Health and Services (HHS-OIG) made the announcement.
Richard Hall, 48; Scott Schuster, 47; Dustin Rall, 43; George Lock Paret, 34; and Michael Ranelle, 49, all of Fort Worth, Texas; John Le, 43, of Dallas; Quintan Cockerell, 37, of Manhattan Beach, California; and Turner Luke Zeutzius, 36, of Horseshoe Bay, Texas, were each charged in an indictment filed Dec. 12 in the Northern District of Texas with one count of conspiracy to defraud the United States and pay and receive kickbacks. Hall, Schuster, Rall, and Le were each additionally charged with four counts of paying kickbacks. Zeutzius was additionally charged with two counts of receiving kickbacks and Ranelle and Cockerell were each charged with one count of receiving kickbacks. Hall, Schuster, Rall, Le and Ranelle were arrested yesterday and had their initial court appearances before U.S. Magistrate Court Judge Irma C. Ramirez in Dallas. Paret, Cockerell and Zeutzius self-surrendered this morning and will have their initial court appearances today at 2 p.m. CST before Judge Ramirez.
According to the indictment, from May 2014 to September 2016, Hall, Schuster, Rall, Paret, Le and their co-conspirators allegedly engaged in a scheme to pay kickbacks and bribes for the referral of TRICARE and DOL beneficiaries to obtain expensive compound drugs. Hall, Shuster and Rall were co-owners of Rxpress Pharmacy and Xpress Compounding, compound pharmacies located at 1000 W. Weatherford St. in Fort Worth.
As alleged in the indictment, Rxpress and Xpress were separate in name only; Rxpress Pharmacy and Xpress Compounding employed the same staff, operated out of the same building, and utilized a call center to direct prescriptions depending on whether the prescriptions were for private or federal insurance. The indictment alleges that both companies utilized the same marketers but paid them differently depending on whether they were receiving a commission on a federal or private prescription, in order to disguise the illegal kickback payments on federal prescriptions. Specifically, Hall, Schuster, Rall, Paret and Le allegedly devised a scheme to make kickback payments to marketers through Xpress Compounding for the referral of federal prescriptions. These marketers were allegedly set up as sham “W-2” employees to appear as though they were bona fide employees of Xpress Compounding. At the same time, these marketers were paid as 1099 contractors by Rxpress Pharmacy, the indictment alleges.
The indictment alleges that as a result of the scheme, Zeutzius was paid approximately $4.4 million, Cockerell (through an unnamed person) was paid approximately $2.1 million, and Ranelle was paid approximately $2.6 million in illegal kickbacks, for a total of approximately $9.1 million in illegal kickbacks.
The charges in the indictment are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DCIS, DOL-OIG, the U.S. Department of Health and Human Services Office of Inspector General, the FBI and the U.S. Department of Veterans Affairs Office of Inspector General investigated the case. Assistant Chief Adrienne Frazior and Trial Attorney Brynn Schiess of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and the U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Eight Dallas-Area Pharmacy Owners and Marketers Charged in $9 Million Kickback SchemeRead the Press Release
Eight Dallas, Texas-area pharmacy owners and marketers were charged in an indictment unsealed today for their roles in a scheme involving approximately $92 million in compound drug claims to TRICARE and the U.S. Department of Labor (DOL), which were allegedly the product of over $9.1 million in illegal kickbacks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service (DCIS) Southwest Field Office, Special Agent in Charge Steven Grell of the U.S. Department of Labor - Office of Inspector General’s (DOL-OIG) Dallas Region and Special Agent in Charge CJ Porter of the Office of Inspector General for the U.S. Department of Health and Services (HHS-OIG) made the announcement.
Richard Hall, 48; Scott Schuster, 47; Dustin Rall, 43; George Lock Paret, 34; and Michael Ranelle, 49, all of Fort Worth, Texas; John Le, 43, of Dallas; Quintan Cockerell, 37, of Manhattan Beach, California; and Turner Luke Zeutzius, 36, of Horseshoe Bay, Texas, were each charged in an indictment filed Dec. 12 in the Northern District of Texas with one count of conspiracy to defraud the United States and pay and receive kickbacks. Hall, Schuster, Rall, and Le were each additionally charged with four counts of paying kickbacks. Zeutzius was additionally charged with two counts of receiving kickbacks and Ranelle and Cockerell were each charged with one count of receiving kickbacks. Hall, Schuster, Rall, Le and Ranelle were arrested yesterday and had their initial court appearances before U.S. Magistrate Judge Irma C. Ramirez in Dallas. Paret, Cockerell and Zeutzius self-surrendered this morning and will have their initial court appearances today at 2 p.m. CST before Judge Ramirez.
According to the indictment, from May 2014 to September 2016, Hall, Schuster, Rall, Paret, Le and their co-conspirators allegedly engaged in a scheme to pay kickbacks and bribes for the referral of TRICARE and DOL beneficiaries to obtain expensive compound drugs. Hall, Shuster and Rall were co-owners of Rxpress Pharmacy and Xpress Compounding, compound pharmacies located at 1000 W. Weatherford St. in Fort Worth.
As alleged in the indictment, Rxpress and Xpress were separate in name only; Rxpress Pharmacy and Xpress Compounding employed the same staff, operated out of the same building, and utilized a call center to direct prescriptions depending on whether the prescriptions were for private or federal insurance. The indictment alleges that both companies utilized the same marketers but paid them differently depending on whether they were receiving a commission on a federal or private prescription, in order to disguise the illegal kickback payments on federal prescriptions. Specifically, Hall, Schuster, Rall, Paret and Le allegedly devised a scheme to make kickback payments to marketers through Xpress Compounding for the referral of federal prescriptions. These marketers were allegedly set up as sham “W-2” employees to appear as though they were bona fide employees of Xpress Compounding. At the same time, these marketers were paid as 1099 contractors by Rxpress Pharmacy, the indictment alleges.
The indictment alleges that as a result of the scheme, Zeutzius was paid approximately $4.4 million, Cockerell (through an unnamed person) was paid approximately $2.1 million, and Ranelle was paid approximately $2.6 million in illegal kickbacks, for a total of approximately $9.1 million in illegal kickbacks.
The charges in the indictment are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DCIS, DOL-OIG, the U.S. Department of Health and Human Services Office of Inspector General, the FBI and the U.S. Department of Veterans Affairs Office of Inspector General investigated the case. Assistant Chief Adrienne Frazior and Trial Attorney Brynn Schiess of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and the U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Eau Claire Man Sentenced to 11 Years on Methamphetamine ChargeRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Steven Gwiazda, 38, Eau Claire, Wisconsin, was sentenced yesterday by U.S. District Judge William Conley to 11 years in federal prison for possessing methamphetamine with intent to distribute. Gwiazda pleaded guilty to this charge on September 28, 2018.
On March 29, 2018, Gwiazda was arrested in Eau Claire on an outstanding warrant. Following his arrest, law enforcement officers searched Gwiazda’s vehicle and found 11 separate bags containing a total of 171 grams of methamphetamine.
At the sentencing hearing, Judge Conley found that Gwiazda was a danger to society based on his lengthy criminal history, which included six prior felony convictions. Judge Conley also noted that Gwiazda was on probation from a prior felony drug conviction at the time of his arrest in Eau Claire.
The charge against Gwiazda was the result of an investigation conducted by the West Central Drug Task Force, the Eau Claire Police Department, the Eau Claire County District Attorney’s Office, and the Drug Enforcement Administration. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Drug Courier Sentenced to Serve a Prison Term of 37 Months for His Role in a Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States Senior District Court Judge Callie V.S. Granade sentenced Jose Francisco Esparza-Arevalo on December 12, 2018 to serve a term of imprisonment of 37 months, in addition to time already served, followed by 3 years of supervised release for Conspiracy to Possess with the Intent to Distribute Methamphetamine in violation of 21 USC § 846. The defendant’s guilty plea was accepted by the Court on August 22, 2018.
On March 15, 2018, the defendant was stopped in a traffic stop on Interstate 65 in Saraland, Alabama. The traffic stop lead to the recovery of multiple kilograms of methamphetamine in the gas tank of the vehicle. The gas tank had been retrofitted with a baffle in order that a separate compartment, separate from the gasoline fueling the vehicle, contained the methamphetamine. The defendant had driven the vehicle from San Antonio, Texas and was operating as a courier for another individual. The defendant was planning to deliver the methamphetamine to the Atlanta, Georgia area for the other individual. A query of the United States Border Protection Land Entry database revealed that the vehicle that the defendant was driving had crossed the U.S./Mexican border 805 times since March of 2013. The most recent inbound crossing before the stop occurred on March 12, 2018. Esparza-Arevalo was in the United States illegally and is expected to be returned to Mexico after he serves his prison term.
The case was investigated by the Homeland Security Investigations (HSI), and the Saraland Police Department. The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDEFT) Lead Attorney, Assistant United States Attorney George F. May and Assistant United States Attorney Lawrence J. Bullard for the United States Attorney’s Office for the Southern District of Alabama.
Department of Justice, Bureau of Indian Affairs Repatriate Items of Cultural Patrimony to Acoma PuebloRead the Press Release
The Department of Justice announced today the repatriation of an Acoma Shield and several other important items of historical and cultural significance to the Pueblo of Acoma and its members.
U.S. Attorney John C. Anderson for the District of New Mexico participated in a repatriation ceremony earlier today with Special Agent Franklin Chavez of the Bureau of Indian Affairs and Governor Kurt Riley of the Pueblo of Acoma. Other federal and tribal officials and community members also attended the event at the Sky City Cultural Center and Haak’u Museum.
“The Department of Justice is committed to enforcing federal laws that preserve the historical, cultural, and religious heritage of Native Americans,” said Acting Attorney General Matthew G. Whitaker. “This commitment includes ensuring sacred objects like the Acoma Shield are returned to their rightful owners. Today’s announcement further demonstrates the Justice Department’s dedication to the safety, prosperity, and wellbeing of American Indian and Alaska Native people.”
BIA recovered the shield that was repatriated today after learning that it was offered for sale online by an art gallery in Montana. Acoma Pueblo war shields are sacred pieces of cultural patrimony that date back hundreds of years and are at the heart of Acoma Pueblo’s heritage and identity. Items such as the war shield are used for ceremonial purposes and are closely kept among traditional leaders of the Pueblo community.
The Native American Graves Protection and Repatriation Act (NAGPRA) is a federal law intended to return unlawfully obtained human remains and cultural objects to their Native American homelands. The U.S. Attorney’s Office and the BIA-Office of Justice Services Cultural Resources Division are dedicated to stemming the loss and trafficking of cultural patrimony by investigating and enforcing the NAGPRA.
“Today, we celebrate the return of several items of cultural patrimony to their true owners: the Pueblo of Acoma,” said U.S. Attorney Anderson. “Our ability to return these items is the result of years of hard work. The Bureau of Indian Affairs, through Special Agent Frank Chavez’s dedicated efforts, discovered these sacred and historic items, and we, at the U.S. Attorney’s Office, are proud to partner with BIA in facilitating their return. Sadly, we all too often find sacred, religious, and culturally significant items being sold at art markets, flea markets and in galleries. In keeping with federal law, we will continue to do everything in our power to locate such objects and deliver them to their rightful homes.”
“I thank the Pueblo of Acoma for their due diligence in locating and reporting these precious objects to BIA and DOJ. I want to acknowledge the voluntarily actions of those individuals who returned the items in their possession once they learned of the cultural significance to the Pueblo of Acoma tribal community,” said Assistant Secretary for Indian Affairs Tara Sweeney. “The proactive work demonstrated by Special Agent Chavez in working closely with all involved makes us proud.”
"We have raised our voices internationally, in the halls of Congress and the legislative chambers here in New Mexico, drawing attention to the longstanding epidemic of theft, looting, and trafficking of our sacred items – all in violation of tribal and federal law. During the 2015 attempted sale of an Acoma Shield by the Eve Auction house in Paris, France, the Pueblo also identified a similar shield and other sensitive cultural items being sold here in the United States. The amount of resources and energy, the Pueblo of Acoma has expended in this matter is a reflection of the seriousness with which we treat the protection of items uniquely distinct to our culture. That is why when U.S. Attorney Anderson informed us that these items of cultural patrimony, including another Acoma Shield, were coming home -- our hearts were overjoyed," said Governor Kurt Riley.
Davenport Vascular Surgeon Agrees to Pay $2.23 Million to Settle Health Care Fraud Claims Associated with Vein Ablation ServicesRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces that Dr. Irfan Siddiqui and his vascular surgery practice, Heart and Vascular Institute of Florida (HAVI), have agreed to pay the United States $2,230,000 to resolve allegations that, from January 2, 2011, to June 30, 2018, Dr. Siddiqui and HAVI violated the False Claims Act by submitting false claims to federal health programs for reimbursement of vein ablation procedures.
“Our Civil Division aggressively pursues medical providers whose practices damage vital federal health programs,” said U.S. Attorney Maria Chapa Lopez. “This settlement is an excellent example of the robust civil health care fraud enforcement that has long been a central part of our district’s mission.”
The settlement announced today resolves allegations that Dr. Siddiqui and HAVI submitted claims to Medicare and TRICARE for vein ablation services that contained false diagnoses and symptoms. Dr. Siddiqui and HAVI also up-coded evaluation and management service claims to levels of service that were not supported by patients’ medical records, and submitted claims for vein ablation procedures that were medically unnecessary or performed by unqualified personnel, or both.
Today’s settlement results from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida with assistance from the Defense Criminal Investigative Service. Assistant United States Attorney Lindsay Saxe Griffin led the investigation.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The settlement arises from a lawsuit filed by one of Dr. Siddiqui’s patients, Ms. Lois Hawks, under the qui tam provisions of the False Claims Act. The case is styled United States ex rel. Hawks v. Heart and Vascular Institute of Florida, et al., case no. 8:16cv1574 (M.D. Fla.). Under the settlement, Ms. Hawks will receive $446,000 as a statutory relator’s share in the recovery.
Dallas-Area Woman Becomes Seventh Person to Plead Guilty in Multi-Million Dollar TRICARE Kickback SchemeRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the FBI, and Artie DeLaneuville, Acting Special Agent in Charge of the Dallas Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), announced the guilty plea today of Jennifer Sorenson, 41, of McKinney, Texas, to conspiring to violate the Anti-Kickback Statute.
In October of this year, Brad Duke, 44, of Little Rock, pleaded guilty to orchestrating a conspiracy to violate the Anti-Kickback Statute that involved an unnamed Medical Assistant and five unnamed Patient Recruiters. All six have since pleaded guilty before Chief United States District Judge Brian S. Miller, culminating with Sorenson’s guilty plea today. The group includes Charlotte Leija, 38, of Conway (previously identified as Medical Assistant 1) and Michael “Chance” Beeman, 49, of Maumelle, Michael Sean Brady, 50, of Little Rock, Jason Greene, 31, of Nashville, Tennessee, Brian Means, 44, of Fort Smith, and Sorenson (previously identified as Patient Recruiters 1, 2, 3, 4, and 5, respectively).
Duke marketed drugs for a Mississippi compounding pharmacy, earning commission whenever affiliated doctors prescribed its drugs. For a time in 2014 and 2015, TRICARE (our military’s health insurer) paid exorbitant sums—up to tens of thousands of dollars per patient, per month—for certain compounded drugs. Duke sought to capitalize on this by paying one set of kickbacks to Patient Recruiters to send him TRICARE beneficiary information and another set of kickbacks to Leija to rubber stamp prescriptions in their names. In less than one year, the scheme generated over $10 million in compound drug prescriptions for over 100 TRICARE beneficiaries hailing from as far west as Chula Vista, California, to as far east as Foxborough, Massachusetts.
At guilty pleas over the previous weeks, Leija admitted inserting the name of the Little Rock doctor for whom she worked onto prescriptions without his knowledge, while Patient Recruiters acknowledged using a variety of methods to round up TRICARE beneficiaries, such as offering them cash and gift cards to receive the drugs and paying subordinates (including current and former members of the military) to recruit still more TRICARE beneficiaries on their behalf. For her part, during today’s hearing Sorenson admitted engaging a network of subordinates that included a member of the Army National Guard, through which she recruited over 20 TRICARE beneficiaries for Duke.
All seven co-conspirators pled guilty to conspiring to violate the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b), which is punishable by up to five years in prison, a fine of not more than $250,000, and up to three years of supervised release. To date, Judge Miller has ordered nearly $3 million in forfeiture, of which almost $1.4 million has already been recovered. Sentencing will take place before Judge Miller in 2019.
If you or someone you know was approached about getting compounded prescription drugs, please contact [email protected].
This case was investigated by the FBI and HHS-OIG, and prosecuted by Assistant United States Attorney Alexander D. Morgan.
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This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edarTwitter:
@EDARNEWSDallas County Man Receives 46 Month Sentence for Possession of a Firearm After Felony ConvictionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that George Armstead, a 28 year old resident of Selma, Alabama was sentenced to 46 months incarceration for possession of a pistol after being convicted of Robbery First Degree.
On September 14, 2018, Armstead entered a guilty pled and admitted in open court that on May 22, 2018, a Selma, AL police officer initiated a traffic stop on a green Honda being driven by Armstead for speeding. During a routine records check, using Armstead’s driver’s license information, the officer learned that Armstead had an outstanding warrant. The officer told Armstead he was going to be arrested based on the warrant and asked Armstead if he has weapons or contraband in the vehicle because it would be towed. Armstead told the officer that “his brother’s firearm” was inside the vehicle underneath the passenger seat. The firearm was seized. It is described as a Smith & Wesson, .40 caliber pistol. The firearm had been reported stolen sometime prior to May 22, 2018. Later that day, Armstead was Mirandized and agreed to talk to police. The interview was recorded. Armstead said that the firearm was his and that he placed it underneath the passenger seat. Armstead said that he bought the firearm “off the street” for $100 because he thought it was being sold for a good price. Armstead also said that he bought the pistol for protection. He further said that he was a felon and was on state probation for Robbery 1st Degree. Armstead said that he was not a bad guy. At that time, Armstead had been convicted of a felony, Robbery First Degree on April 6, 2015 in the Circuit Court of Dallas County, Alabama, case number CC-2013-000146.
Officers of the Selma, Alabama Police Department along with special agents of the Bureau of Alcohol Tobacco Firearms and Explosives investigated the case and brought it to the U. S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Dallas County Man Receives 27 Month Sentence for Possession of a Firearm After Felony ConvictionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Clarence Brenson, a 25 year old resident of Selma, Alabama was sentenced to 27 months incarceration for possession of a rifle after being convicted of Rape Second Degree.
On September 19, 2018, Brenson entered a guilty pled and admitted in open court that on June 2, 2018, Selma, AL police officers initiated a traffic stop on a vehicle being driven by a female friend of Brenson’s for failing to yield for an emergency vehicle. Brenson was in the front passenger seat and two small children were in the back seat. The officers smelled the strong odor of marijuana and asked the female driver to exit the vehicle. When she did, she told the officers she had been smoking marijuana. Officers asked her if they would find marijuana if they searched the vehicle and she said, “No” because she smoked it all. She gave permission to search the vehicle. As Brenson exited the front passenger seat officers, observed a Romarm/Cugir, model WSAR-10, 7.62X39 caliber rifle. The firearm was loaded. While Brenson was seated, the firearm was between his feet. Brenson told the officers he did not have identification and gave the officers his social security number. Brenson also told the officers he was a registered sex offender. A search of the vehicle yielded a small amount of marijuana and spent shell casings from guns other than the rifle Brenson possessed.
At that time, Brenson had been convicted of a felony, Rape 2nd, on June 13, 2016 in the Circuit Court of Dallas County, Alabama, case number CC-2013-000238,
Officers of the Selma, Alabama Police Department along with special agents of the Bureau of Alcohol Tobacco Firearms and Explosives investigated the case and brought it to the U. S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.Court Sentences Former Wilmington Trust Chief Credit Officer and Controller to ImprisonmentRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that the Honorable Richard G. Andrews sentenced former Wilmington Trust Chief Credit Officer William North, age 59, to 54 months’ imprisonment and a $100,000.00 fine. Judge Andrews also sentenced former Wilmington Trust Controller Kevyn Rakowski, age 65, to 36 months’ imprisonment.
The sentencing hearings of North and Rakowski followed those of Robert Harra, age 69, the Bank’s former President; and David Gibson, the Bank’s former Chief Financial Officer, age 61. On Monday, December 17, 2018, Judge Andrews sentenced both Harra and Gibson to 72 months imprisonment and a fine of $300,000.00. The Court also ordered all four Defendants to agree to a ban from the banking industry and to surrender to the custody of the Bureau of Prisons by February 19, 2019.
A federal jury convicted each of the Defendants in May 2018, following a two-month trial. The jury returned guilty verdicts on sixteen counts of the Third Superseding Indictment, including conspiracy, as well as fifteen fraud, false statements, and false entries offenses. The jury also convicted Gibson on three additional counts of making false certifications in financial reports.
At trial, the government proved that the defendants conspired to falsely report the Bank’s amount of past due loans to regulators, investors, and the public. The government presented evidence that the Defendants caused the Bank to underreport approximately $300 million in past due loans in the Third and Fourth Quarters of 2009 in Call Reports and Monthly Regulatory Reports filed with the Federal Reserve and in Securities Filings with the Securities Exchange Commission. The Bank used the false Securities Filings to raise $287 million in a February 2010 stock sale.
When the Bank finally began reporting its past due loan information correctly in the Third Quarter of 2010, it recognized losses of over $370 million and its share price plummeted. On November 1, 2010, M&T Bank announced that it had acquired Wilmington Trust at a sharply-discounted price. The Wall Street Journal referred to the acquisition as “one of the biggest banking firesales in history.” Over 700 Wilmington Trust employees lost their jobs as a result of the merger.
U.S. Attorney David C. Weiss stated, “Today’s sentencing hearings are the culmination of the multi-year investigation and trial of four of the top officers of the Wilmington Trust Corporation. This landmark prosecution of the Bank’s President, Chief Financial Officer, Chief Credit Officer, and Controller sends a clear message that top corporate bankers cannot lie to their regulators and the public about important disclosures that affect the safety and soundness of banks and impact the decision of investors to buy or sell stock. The Defendants’ actions contributed to the downfall of an important Delaware institution, causing hundreds of employees to lose their jobs and investors to lose hundreds of millions of dollars when the Bank’s stock price collapsed. The sentences imposed by the Court appropriately punish the Defendants for their serious criminal conduct and strongly encourage other corporate executives to follow the law. I am grateful to the prosecution team and our investigative partners for their steadfast commitment to this case and their unyielding efforts in bringing the Defendants to justice.”
"The FBI applauds the sentencings as an affirmation of holding corporate executives to the same standard of accountability under the law as other criminals," said FBI Baltimore Special Agent in Charge Gordon Johnson. "The FBI and its law enforcement partners here in Delaware will aggressively investigate crimes which take place in the corporate suites of banks and companies and hold those executives responsible for their actions when they betray their fiduciary responsibilities to their clients and investors."
"TARP was created to stabilize banks, not to fund banks to engage in risky lending and then commit fraud to cover up bad loans,” said Special Inspector General for the Troubled Asset Relief Program Christy Goldsmith Romero. “Once again, SIGTARP’s investigation has revealed bank executives—like Wilmington Trust’s former President, former chief financial officer, former chief credit officer, and former controller sentenced to prison—who criminally concealed hundreds of millions in past due loans resulting from risky aggressive growth in the years leading up to the financial crisis. Once again, courts are bringing justice through prison sentences for these crimes. I want to express my appreciation to U.S. Attorney David Weiss, his dedicated team of prosecutors, and our other law enforcement partners that stood fast with SIGTARP to uncover the evidence and take this case to trial.”
“The sentences handed down in this case are direct results of the excellent partnership IRS-CI, our law enforcement partners, and the U.S. Attorney’s Office has in combating violations of federal law and ensuring public trust,” said Guy Ficco, Special Agent in Charge IRS Criminal Investigation (IRS-CI), Philadelphia Field Office.
“These sentencings send a clear warning that bank executives who deliberately deceive regulators by submitting false and misleading information will be held accountable and brought to justice for their actions. I am proud of our agents and their federal law enforcement partners, whose hard work and persistence ultimately led to these outcomes,” stated Mark Bialek, Inspector General, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB-CFPB OIG).
This case was prosecuted by Assistant U.S. Attorneys Robert F. Kravetz, Lesley F. Wolf, and Jamie M. McCall, and investigated by the FBI, SIGTARP, IRS-CI, and FRB-CFPB OIG.
U.S. Attorney Weiss Statement regarding Robert Harra and David Gibson sentencings: https://go.usa.gov/xExMs.
Coralville Attorney Sentenced to Federal Prison on Mail Fraud and False Claims ChargesRead the Press Release
DAVENPORT, IA-- On December 19, 2018, Soo Hyun Jung, also known as Jay Jung, age 46, from Coralville, was sentenced to 38 months in prison after pleading guilty to two counts of Mail Fraud and one count of False Claims to a Government Agency, announced United States Attorney Marc Krickbaum. Jung was ordered to serve three years of supervised release, pay a $300 special assessment to the Crime Victims’ Fund, and pay $618,021 in restitution to twelve victims.
From 2014-2016, Jung represented clients as an attorney and tax preparer. Jung admitted in 2014, he agreed to represent a client to prepare tax returns. Jung filed tax returns and requested refunds. In July 2015, Jung contacted IRS to check on the status of these returns. During this contact, Jung updated the client’s home address on file with the IRS to Jung’s business address in Coralville. In August 2015, Jung filed additional tax returns without the consent of the client. These additional returns contained information that was not accurate and requested refunds. These returns included a 2013 return submitted to the United States Department of Treasury on August 22, 2015, that falsely claimed a refund of $15,252. As a result, in October 2015, three United States Treasury refund checks totaling $202,179 were received by Jung. Jung forged an endorsement on these checks and, in a series of transfers, caused these funds to be deposited into his personal bank account. Jung used $83,200 of these funds in November 2015 to purchase a 2014 BMW M6 Gran Coupe. In May 2016, in relation to a different client, Jung caused an investment fund to be cashed out and a $200,000 check mailed to Jung in Coralville, Iowa. Jung later caused these funds to be deposited into his personal bank account and withdrew $115,000.
This matter was investigated by the Internal Revenue Service-Criminal Investigation Division. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Indicted on Federal Gun and Drug ChargesRead the Press Release
RICHMOND, Va. – A federal grand jury returned a two-count indictment late yesterday charging a Henrico man with possessing 100 grams or more of heroin with the intent to distribute and illegally possessing a firearm as a convicted felon.
According to the indictment, Mervin Turner, 37, is charged with possession with the intent to distribute 100 grams of more of heroin. If convicted on this count, Turner faces a mandatory minimum term of 5 years in prison and maximum penalty of 40 years in prison. Turner is also charged with possession of a semi-automatic pistol, and if convicted he faces a maximum penalty of 10 years in prison.
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 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, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Colonel Gary T. Settle, Superintendent of Virginia State Police, and Alfred Durham, Chief of Richmond Police, made the announcement. Assistant U.S. Attorneys Erik S. Siebert and Kenneth Simon are 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. 3:18-cr-158.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Connecticut Man Sentenced to 60 Months Imprisonment for Conspiracy to Distribute Drugs in Chittenden County and Unlawful Possession of FirearmsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Anthony Mickens (a.k.a. “K”), 26, of Hartford, Connecticut, was sentenced yesterday to 60 months imprisonment by United States District Court Judge Christina Reiss, in U.S. District Court in Burlington, Vermont. Judge Reiss also sentenced Mickens to a three-year period of supervised release by the U.S. Probation Office, which begins when Mickens is released from prison. Finally, the Court ordered the forfeiture of $5,592 of drug proceeds seized from Mickens at the time of his arrest.
Mickens previously pled guilty to conspiracy to distribute heroin and cocaine base and possession of firearms by a felon. Mickens was facing a maximum sentence of twenty years imprisonment for the drug conspiracy and ten years imprisonment for the firearms offense.
According to court records, in August 2017, Mickens conspired with others to distribute heroin and crack cocaine in Chittenden County. Mickens obtained his drugs from Connecticut. At that time, Mickens lived at 46 Foxwood Circle in Williston and used a female drug user and other persons to sell drugs for him in Chittenden County. Mickens also unlawfully acquired two stolen .22 caliber pistols by trading heroin and crack cocaine to the thief for the guns. Given that Mickens had prior felony convictions he was prohibited from possessing any firearms.
Kelly D. Brady, Special Agent-in-Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), which covers all the New England states, stated: “ATF will continue to work with our state and local law enforcement counterparts, to vigorously combat drug traffickers and the threat they pose to our citizens by illegally possessing firearms in furtherance of their illegal drug trade”
The government wrote in its sentencing memorandum:
Heroin and crack cocaine are destroying lives and families in many Vermont communities. A strong message needs to continually be sent to persons, such as the defendant, who deal drugs for profit and prey on addicts, that there are significant legal consequences for distributing these addictive poisons and acquiring firearms through drug trafficking. A 60-month sentence in the context of this case achieves that deterrence goal.
U.S. Attorney Christina Nolan added: “This case, once again, highlights the link between trafficking in dangerous drugs and gun crime. It is also an example of the success we achieve through the Vermont law enforcement model of collaboration on all levels to make communities safer. The Vermont law enforcement team will never tire in its mission to bring strong consequences to those who engage in violence and unlawfully possess firearms in connection with the drug trade.”
This case was jointly investigated by the Burlington Police Department, Williston Police Department, Winooski Police Department, Milton Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Joseph Perella is prosecuting this case case on behalf of the United States. Mickens is represented by Steven Barth, Esq., of the Federal Public Defenders Office.
Central Iowa Insurance Agent Sentenced to 97 Months in Prison for Defrauding Elderly ClientsRead the Press Release
DES MOINES, IA – On December 18, 2018, Roger Duane Goodwin, age 60, was sentenced to 97 months in federal prison to be followed by three years of supervised release for Mail Fraud charges in the United States District Court for the Southern District of Iowa. United States District Court Judge Rebecca Goodgame Ebinger ordered Goodwin pay restitution to the victims totaling $934,931.21 and ordered Goodwin’s residence in Windsor Heights and a Harley Davidson motorcycle be forfeited to the United States.
Goodwin was found guilty of seven counts of mail fraud on August 9, 2018, following a four-day jury trial. At trial, the government presented evidence that Goodwin owned and operated “Goodwin Network of Advisors, Inc.” which was also referred to as “Goodwin Network”, “GN of A”, and “GNA Corp.” and sold life insurance and annuities to individuals in the Des Moines and Houston, Texas areas. From February 2013 through August 2016, Goodwin advised several of his clients to surrender or cash out existing investments—totaling over $1 million—in order to use those funds to purchase insurance products from him. Instead of purchasing insurance policies or annuity contracts for these clients as promised, Goodwin deposited the clients’ checks into a bank account associated with Goodwin Network of Advisors – which only Goodwin and his spouse could access. Goodwin kept all or large portions of the funds and used the money for unauthorized purposes that were not for the benefit of the affected clients. Goodwin used his clients’ money, unbeknownst to them, for his personal expenses including paying his mortgage, making vehicle payments, remodeling and other home improvement for his residence, travel, and various personal retail expenditures. Goodwin used small portions of the client’s funds in order to repay other clients of Goodwin’s and to make payments to the insurance companies for the benefit of other clients whose money Goodwin had failed to earlier send to the insurance company.
“Roger Goodwin targeted elderly citizens, won their trust, and then took their money through fraud,” said United States Attorney Marc Krickbaum. “This lengthy prison sentence holds him accountable, and it should serve as a warning to anyone who is tempted to prey upon our seniors.”
This case was investigated by the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Career Law Enforcement Coordinator for the U.S. Attorney’s Office Awarded South Carolina’s Highest Civilian Honor by Governor McMasterRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon is proud to announce that Rebecca Ann “Becky” Plyler was awarded the Order of the Palmetto by Governor Henry McMaster. The Order of the Palmetto is considered the highest civilian honor in the State of South Carolina. It was first awarded in 1971 by Governor John C. West. It recognizes a person's lifetime achievements and contributions to the State of South Carolina. Prior Order of the Palmetto recipients include singer James Brown and author Pat Conroy.
Ms. Plyler was surrounded by her colleagues and members of local, state, and federal law enforcement from across the state when she received the award during a surprise office gathering earlier this week. After 39 years of dedicated service to the U.S. Attorney’s Office as well as to law enforcement and citizens in communities across the state, Mrs. Plyler is set to retire at the end of the year. During the gathering, Mrs. Plyler was also awarded the Chief’s Award by Chief Mark Keel from the South Carolina Law Enforcement Division (SLED). A very prestigious award, the Chief’s Award has only been given to three other recipients over the years.
Camp Verde Man Sentenced to 12 Months and One Day for Assault on a Federal OfficerRead the Press Release
PHOENIX –This week, Kelton Treyvon Prentiss, 23, of Camp Verde, Ariz., was sentenced by Senior United States District Judge David G. Campbell to 12 months and one day in federal prison, followed by three years of supervised release. Prentiss had previously pleaded guilty to assault on a federal officer.
On March 26, 2018, Prentiss, an enrolled member of the Yavapai-Apache Nation, assaulted a Yavapai-Apache Nation police officer. As a result of the assault, the officer suffered serious bodily injury.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Yavapai-Apache Nation Police Department. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-8216-PCT-DGC
RELEASE NUMBER: 2018-170_Prentiss
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Brazilian Citizens Plead Guilty to Using Counterfeit Credit Cards to Purchase over $52,000 in Merchandise and to Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – Two Brazilian citizens residing in Florida have pleaded guilty to federal wire fraud charges in connection with a scheme to use counterfeit debit and credit cards to purchase merchandise at various retail stores in Maryland and other states. Lucas Pimenta Diogo Das Gracas, age 23, pleaded guilty today, and his co-conspirator, Diogo Miranda Araujo, age 23, pleaded guilty on December 7, 2018. Araujo also pleaded guilty to aggravated identity theft for his role in the scheme in Maryland. Das Gracas also pleaded guilty to possession of counterfeit access devices and aggravated identity theft in connection with a separate case pending in the U.S. District Court for the Southern District of Mississippi. Another co-conspirator, Victor Andrade Carneiro Brito, pleaded guilty to possession and use of counterfeit access devices and aggravated identity theft in the U.S. District Court for the Southern District of Florida on October 5, 2018.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Sung Yi of the U.S. Secret Service, Baltimore Field Office; Special Agent in Charge Raimund Seifart of the Naval Criminal Investigative Service – Washington Field Office; Colonel Lance Royce of the Naval Support Activity Police Department; and Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police.
According to Araujo’s plea agreement, in November 2017, while he was on pretrial release for related Illinois state charges, Araujo traveled from Florida to Maryland, Virginia, and North Carolina. Araujo obtained a large number of cloned payment cards as well as fake Brazilian identification cards that were used in fraudulent retail transactions in Maryland and the surrounding area. On November 19, Araujo was arrested by a Maryland Transportation Authority Police (“MTAP”) officer who conducted a traffic stop of Araujo’s vehicle and learned that Araujo was driving on a suspended license. A search of the vehicle resulted in the seizure of approximately 164 counterfeit payment cards, four fake Brazilian identification cards displaying the same photo of Araujo but listing four different names, multiple receipts, and several recently purchased items of merchandise, including two laptop computers, six GPS devices, and sports equipment. Merchandise recovered from the vehicle had an approximate total value of $4,355. Most of the counterfeit payment cards displayed names listed among Araujo’s four fake identification cards and were encoded with compromised foreign credit and debit card accounts.
Also in November 2017, Das Gracas, Brito, and another co-conspirator possessed at least 189 counterfeit payments cards, which they used, along with false identification documents, to rent a vehicle and make fraudulent retail purchases in Maryland and surrounding states. Das Gracas and Brito were arrested in Maryland on November 29, 2017, after they and another co-conspirator made numerous purchases of computers and other merchandise using the counterfeit payment cards. Law enforcement stopped the vehicle that Das Gracas was driving. As Das Gracas got out of the vehicle, law enforcement officers observed numerous credit cards inside an open white box on the center console of the vehicle. All 166 cards found in the vehicle were scanned and found to be counterfeit. Most of the cards were encoded with foreign credit and debit card accounts.
Araujo further admitted that from May through July 2017, he traveled from Florida to Minnesota, Ohio, Wisconsin, and Illinois making fraudulent purchases at retailers using counterfeit payment cards. Specifically, co-conspirators in Florida sent Araujo cloned payment cards, which Araujo would pick up at commercial mail service locations and use at retailers in the area. On July 29, 2017, after making a number of fraudulent purchases at an Illinois department store, Araujo was arrested. Illinois law enforcement recovered approximately 197 cloned payment cards and approximately 157 items of merchandise, including cellular phones, small electronics, and other items valued at approximately $48,089. A search of the laptop computer found in Araujo’s luggage revealed an open document listing approximately 432 credit and debit card account numbers with associated data, and an open American Express webpage. Most of the listed credit and debit card accounts were held by financial institutions located in various foreign countries.
In connection with the Mississippi case, Das Gracas further admitted that between October 4 and October 14, 2017, Das Gracas and other co-conspirators possessed and installed “shimmer” devices on automated teller machines at financial institutions in Gulfport, Ocean Springs, Biloxi, Long Beach and D’Iberville, Mississippi. A shimmer device is equipment designed and used to record data surreptitiously from the chip of a credit, debit, or bank card. On October 18, Das Gracas and other conspirators traveled to ATMs in Hattiesburg, Mississippi, to conduct fraudulent cash withdrawals, using the account numbers and personal identification numbers obtained through the use of the previously installed shimmer devices. A total of approximately 82 payment cards were compromised and information associated with 35 of those cards was subsequently used, resulting in losses of approximately $19,235, as well as an additional $11,358 in losses to the financial institutions to repair and replace ATM card readers damaged by Das Gracas and co-conspirators when installing shimmer devices.
As part of their plea agreements, the defendants will be required to pay restitution in the full amount of the victims’ losses.
Das Gracas and Araujo each face a maximum sentence of 20 years in prison for wire fraud and a mandatory minimum of two years in prison, consecutive to any other sentence, for aggravated identity theft. Das Gracas also faces a maximum of 10 years in prison for possession of counterfeit access devices. U.S. District Judge Richard D. Bennett has scheduled sentencing for Araujo on March 6, 2019, at 3:00 p.m.; and for Das Gracas on March 21, 2019, at 3:00 p.m. Brito is scheduled to be sentenced on March 8, 2019, in the Southern District of Florida.
United States Attorney Robert K. Hur commended the U.S. Secret Service Baltimore and Chicago Field Offices, the NCIS, Navy Police, Maryland Transportation Authority Police, and the St. Charles, Illinois Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting the case.
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Bergen County, New Jersey, Man Charged with Conspiracy to Distribute HeroinRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man who was arrested with three kilograms of heroin, a loaded, stolen Glock 22 pistol with a high-capacity magazine, and tens of thousands of dollars in cash in his possession made his initial court appearance today in Newark federal court, U.S. Attorney Craig Carpenito announced.
Jose Pena, a/k/a “Gucci,” 31, of Cliffside Park, New Jersey, is charged by complaint with one count of conspiracy to distribute one kilogram or more of heroin. He appeared in court today before U.S. Magistrate Judge Steven C. Mannion and was detained.
According to the complaint:
On Dec. 17, 2018, law enforcement observed Pena driving into a public garage near the Botanical Gardens in Bronx, New York, where law enforcement suspected that Pena stored substantial quantities of narcotics in a minivan for distribution.
On Dec. 18, 2018, Pena drove from Cliffside Park to the garage, parked next to the minivan and entered it. When officers approached, they saw a brownish beige powdery substance at various places inside the minivan, including numerous softball-sized bags of suspected heroin. A field test of one of the bags was positive for heroin.
Law enforcement officers found the stolen pistol, loaded with 13 bullets in a large capacity magazine, in a backpack within reach of where Pena had been sitting. They also found tens of thousands of dollars in cash in a secret compartment behind the radio and temperature controls of the minivan.
The heroin distribution conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life imprisonment, and a $10 million fine.
U.S. Attorney Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, as well as the DEA New York Strike Force, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Jay Heinrich Esq., Bronx, New York
Bay Minette Man Sentenced in Connection with Prichard ShootingRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Laderrick Deanrey Hopson, 24, of Bay Minette, was sentenced in federal court today on the charge of felon in possession of ammunition. Hopson pled guilty to the charge in July of 2018. The evidence presented at the sentencing hearing showed Hopson depicted on surveillance video at a convenience store on St. Stephens Road in February of 2018 as he entered the store, then followed another customer out of the store and shot him. The video showed Hopson rack the gun once prior to firing it, and the ammunition ejected from the gun was recovered in the investigation that followed the shooting. The customer, identified during the hearing as R.M., later passed away at the hospital. Hopson has pending state charges relating to the homicide. The federal indictment reflected that his prior conviction is for Robbery Second Degree in 2016.
Judge Kristi K. Dubose imposed a sentence of 71 months imprisonment for the federal charge involving the ammunition, to be followed by a term of supervised release of three years. No fine was imposed, but Hopson was ordered to pay $100 in special mandatory assessments.
The case was investigated by the Prichard Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Baltimore Man Pleads Guilty to an Armed CarjackingRead the Press Release
Baltimore, Maryland – DeAndre Spencer, age 27, of Baltimore, Maryland, pleaded guilty today to an armed carjacking.
The guilty plea 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; Interim Commissioner Gary Tuggle of the Baltimore Police Department; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
“We are focusing our federal resources to reduce gun violence in Baltimore,” said U.S. Attorney Robert K. Hur. “Armed criminals, especially those who brandish a weapon in the commission of a crime, face the very real risk of serving time in federal prison, where there is no parole – ever.”
“Anyone using firearms to inflict violence on law-abiding citizens must be brought to justice,” said Special Agent in Charge Rob Cekada. “ATF’s mission and focus alongside our partners is to identify and stop violent offenders who are committing these crimes.”
According to his plea agreement, on October 26, 2017, the victim was stopped in his car at the intersection of North Duncan Street and East Fairmount Avenue in Baltimore, when Spencer approached and requested a ride. The victim refused and Spencer pointed a loaded handgun at the victim and demanded that the victim get out of the car. Spencer then stole the victim’s wallet and cell phone and drove away in the victim’s car. The victim walked to a nearby school and called 911. Police arrived and began an investigation into the carjacking.
Later that day, a detective with the Baltimore County Police Department saw Spencer driving the victim’s car. Spencer was driving through intersections without stopping at stop signs. The detective began following the car to initiate a traffic stop. Shortly thereafter, Spencer crashed the car into a light pole and tried to run away. The detective apprehended Spencer and recovered a loaded handgun from his person.
Spencer and the government have agreed that if the Court accepts the plea agreement, Spencer will be sentenced to 12 years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for March 20, 2019 at 9:15 a.m.
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, the Baltimore Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew DellaBetta, who is prosecuting the case.
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Antiques Shop Owner Guilty of Smuggling Endangered WildlifeRead the Press Release
ALEXANDRIA, Va. – The owner of an antiques and specialty shop in Middleburg pleaded guilty today to violating the Lacey Act by illegally selling and transporting between $250,000 and $500,000 worth of items made from endangered species, migratory birds, and other wildlife.
According to court documents, Keith Foster, 60, of Upperville, was the owner of The Outpost LLC. The Outpost specialized in selling foreign-sourced merchandise, a portion of which included wildlife products made from endangered species such as crocodiles, sea turtles, and sawfish. To evade enforcement by the U.S. Fish and Wildlife Service, Foster relied on a shipping company to falsify import records in order to hide wildlife items and avoid inspection by the U.S. Fish and Wildlife Service and other law enforcement officials.
According to court documents, on numerous occasions beginning in December 2016, Foster discussed with a customer the unlawful nature of his conduct, including telling a customer it was illegal to import sawfish blades but he was going to continue to smuggle them, saying, “Rest assured, I’m gonna bring more in. Cause I’m the only fool in the States that probably wants to risk it.”
During March and April 2017, Foster imported over 100 undeclared wildlife items, including items protected by the Endangered Species Act and the Convention on International Trade in Endangered Species (CITES) such as sea turtle shell, sawfish blades, crocodile skin bags, coral, and mounted birds of prey. CITES is an international treaty that provides protection to fish, wildlife and plant populations that are or could be harmed as a result of trade and restricts the international trade and transport of species that are threatened with extinction.
According to court documents, on April 12, 2017, Foster showed a customer numerous wildlife pieces for sale, including sawfish blades, turtle shell, ivory, zebra hide, crocodile, and various birds and bird parts. Foster told the customer about smuggling wildlife, about lacking the proper CITES permits to purchase, export, and later import some protected wildlife, and about the dangers of being caught by United States Customs. The customer then purchased numerous wildlife items including sawfish blades, a mounted barn owl, and a jar made from sea turtle shell, all of which were previously smuggled by The Outpost. The customer was in fact an undercover U.S. Fish and Wildlife Service agent.
As part of his plea agreement, Foster and The Outpost forfeited $275,000 and over 175 items made from wildlife, which were previously smuggled and being offered for sale.
Foster pleaded guilty to violating the Lacey Act and faces a maximum penalty of 5 years in prison when sentenced on March 8, 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Edward Grace, Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorney Gordon D. Kromberg is prosecuting the case.
This case is being investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, with assistance from Homeland Security Investigations, U.S. Customs and Border Protection, and the U.S. Postal Inspection Service.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-455 and 1:18-cr-456.
Anchorage Woman, Inmate Sentenced to over Three Years for Distributing Fentanyl in PrisonRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Anchorage woman, who was an inmate at Hiland Mountain Correctional Center (HMCC) at the time of the offense, was sentenced for distributing fentanyl to other inmates while in prison, which resulted in the overdose of four inmates.
Dorothy Elizabeth Lantz, 37, of Anchorage, was sentenced today by U.S. District Judge Ralph R. Beistline, to serve 40 months in prison, followed by three years of supervised release, after previously pleading guilty to three counts of distribution of a controlled substance. The court deferred ruling for 30 days on whether Lantz will also be ordered to pay restitution to the State of Alaska Department of Corrections (DOC) for related hospital bills it incurred due to the fentanyl overdoses.
According to court documents, on Oct. 24, 2017, Lantz was booked into Anchorage Correctional Complex (ACC) for a state probation violation. On Oct. 30, 2017, Lantz was transferred from ACC to HMCC, while carrying fentanyl inside her body. When she arrived at HMCC that afternoon, Lantz distributed a quantity of fentanyl to another HMCC inmate, and distributed a quantity of fentanyl to two other HMCC inmates the next day. In all, between Oct. 30 and Oct. 31, 2017, four HMCC inmates overdosed after taking fentanyl, including one inmate who overdosed two separate times. All four inmates were resuscitated and survived.
During the course of the investigation, DOC personnel were able to recover .38 grams of fentanyl from one of the HMCC inmates who overdosed. The investigation revealed that Lantz had traded the drugs to her fellow HMCC inmates in exchange for commissary items. Fentanyl, sometimes known on the street as “Grey Death,” is a powerful synthetic opioid that is up to 50 times more powerful than heroin.
At the sentencing hearing, the defendant acknowledged that in smuggling fentanyl into the prison and then distributing it, she had made “one bad decision after another.” Judge Beistline underscored that the overdoses at HMCC was a “significant event” that required a significant sentence to deter others from making the same dangerous decisions that the defendant had made. Moreover, the judge recognized that had the inmates who overdosed not been resuscitated the defendant would have been facing “years not months” in federal prison.
The Drug Enforcement Administration (DEA) and DOC conducted the investigation, leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Andrea W. Hattan
Alaska Resident Charged with Making Hoax Bomb Threats Against Lafayette CollegeRead the Press Release
EASTON, PA – United States Attorney William M. McSwain announced today that Gavin Lee Casdorph, 30, of Anchorage, Alaska, has been charged by complaint and warrant with one count of willfully making false threats in violation of 18 U.S.C. § 844(e). The complaint and warrant alleges that on May 5, 2018, Casdorph threatened to detonate multiple explosive devices he claimed to have planted on the campus of Lafayette College. A joint press conference was held today at the College to announce the charges. U.S. Attorney McSwain, Assistant Special Agent in Charge Steven McQueen of the Federal Bureau of Investigation, Philadelphia Division, and Lafayette College President Alison Byerly provided details concerning the investigation and prosecution.
Casdorph was arrested on December 12, 2018, after agents from the Federal Bureau of Investigation questioned him at his home in Anchorage, Alaska. Casdorph’s initial appearance took place on Thursday, December 13, 2018 in federal district court in the District of Alaska. On Tuesday, December 18, 2018, Casdorph again appeared in district court in Alaska for a detention hearing; the court determined that he will be detained pending trial. He will be transported to Philadelphia shortly to face the federal charges against him.
The complaint and warrant alleges that on May 5, 2018, a Twitter user operating the handle “BdanJafarSaleem” posted several false and threatening tweets, claiming to have placed explosive devices across the Lafayette College campus in order to “inflict the utmost damage possible.” A letter purportedly authored by the user was posted on Twitter, stating that his grandfather had died, his girlfriend had broken up with him, and that he had found faith and healing in Allah. The author also pledged allegiance to ISIS.
Law enforcement agencies quickly determined that there were no bombs on campus, but the hoax caused a tremendous amount of disruption and anxiety on campus. The threats also caused the College to move the location of its graduation ceremonies as a precaution.
If convicted, Casdorph will face a maximum penalty of 10 years’ imprisonment, three years’ supervised release, a fine of $250,000, and a $100 special assessment.
“This is a great example of law enforcement and school officials working together to keep the community safe, and there are important lessons to draw from it,” said U.S. Attorney McSwain. “Casdorph’s arrest sends a clear message to anyone who pulls a stunt like the one alleged in this complaint and warrant: this is not a game and threats like these are no joke. If you engage in this kind of behavior, no matter who you are or where you are – even as far as Alaska – law enforcement will determine what you did, hunt you down, and hold you accountable.”
"When the FBI learned of the threats made against Lafayette College last May, we immediately mobilized," said FBI Assistant Special Agent in Charge McQueen. "Public safety is always our highest priority. Fortunately, we fairly quickly determined that there was no indication of an immediate threat to the college and community. But as this investigation, and the arrest of Gavin Casdorph show, the FBI takes all threats of violence extremely seriously. Making a hoax threat, also known as 'swatting,' is not a joke -- it's a crime. That's the message I want people taking away from this case. If the FBI catches you 'swatting,' you may soon be 'squatting' in federal prison."
“I want to express our immense gratitude to all of the federal, state, and local law enforcement agencies, including our own Department of Public Safety, for their diligence in pursuing this investigation and identifying a suspect,” said President Byerly. “I also want to thank the Lafayette community – students, faculty, staff, parents, and alumni – for supporting one another during a difficult time last May, and for helping the College return to a sense of normalcy as quickly as possible once the FBI had determined that the threat was not credible.”
This case was investigated by the Lafayette College Department of Public Safety, Easton Police Department, and the Federal Bureau of Investigation, Philadelphia Division and Anchorage Division. It is being prosecuted by Assistant United States Attorney Joseph LaBar.
Abdulrahman El Bahnasawy Sentenced to 40 Years in Prison for Plotting to Carry out Terrorist Attacks in New York City for ISIS in Summer of 2016Read the Press Release
Abdulrahman El Bahnasawy, 20, of Missausagua, Canada, was sentenced to 40 years in prison, and a lifetime of supervised release, for plotting to carry out terrorist attacks in New York City during the summer of 2016 in support of the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. El Bahnasawy pleaded guilty on Oct. 13, 2016, to a seven-count Superseding Information charging El Bahnasawy with terrorism offenses.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York field office, Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles field office, and Commissioner James P. O’Neill of the NYPD made the announcement. The sentence was issued by U.S. District Judge Richard M. Berman.
“El Bahnasawy conspired with others to conduct terrorist attacks in New York City in support of ISIS, and came into this country to carry them out. Today’s sentence reflects the severity of his conduct and holds him accountable for his terrorist activities,” said Assistant Attorney General Demers. “I want to commend the prosecutors, agents, and analysts who are responsible for this successful result. The National Security Division is committed to identifying and holding accountable those who seek to harm to our country and our citizens.”
“In the name of ISIS, Abdulrahman El Bahnasawy planned an elaborate attack to wreak havoc and destruction on New York City,” said U.S. Attorney Berman. “He planned to detonate bombs in Times Square and the New York City subway system, and to shoot civilians at concert venues. Demonstrating his commitment to carry out the attacks, El Bahnasawy pinpointed bomb locations on a map of the subway system, and acquired an array of bomb-making materials. El Bahnasawy aspired, in his words, to ‘create the next 9/11.’ Thanks to our law enforcement partners in New York, nationally, and internationally, this potentially devastating plot was thwarted.”
Using encrypted electronic messaging applications, El Bahnasawy, a 20-year-old Canadian citizen and resident, plotted with Talha Haroon, a 20-year-old U.S. citizen residing in Pakistan, and Russell Salic, a 38-year-old Philippines citizen and resident, to conduct bombings and shootings in heavily populated areas of New York City during the Islamic holy month of Ramadhan in 2016, all in the name of ISIS (the NYC Attacks). El Bahnasawy acquired bomb-making materials and helped secure a cabin within driving distance of New York City to use for building explosive devices and staging the NYC Attacks. Haroon allegedly made plans to travel from Pakistan to New York City to join El Bahnasawy in carrying out the attacks. And as El Bahnasawy and Haroon prepared to execute the NYC Attacks, Salic allegedly wired money from the Philippines to the United States to help fund the terrorist operation.
An undercover FBI agent (the UC) infiltrated the co-conspirators’ terrorist plot, posing as an ISIS supporter prepared to join in the attacks. The FBI arrested El Bahnasawy in May 2016 after he traveled from Canada to the New York City area in preparation for the attacks, and he has been in custody since that time. Haroon was arrested in Pakistan in September 2016, and Salic was arrested in the Philippines in April 2017, based on Complaints filed against them in Manhattan federal court, and they remain in foreign custody pending proceedings for their extradition to the United States.
The charges contained in the Complaints filed against Haroon and Salic are merely accusations, and Haroon and Salic are presumed innocent unless and until proven guilty.
Mr. Demers and Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the FBI’s Los Angeles and Denver Field Offices. Mr. Demers and Mr. Berman also thanked the Royal Canadian Mounted Police, the FBI’s Cleveland Field Office, the FBI’s Legal Attaché Offices in Canada, Pakistan, and the Philippines, the New York State Police, the Department of Justice’s Office of International Affairs, and the U.S. Attorney’s Office for the Central District of California for their assistance.
Assistant U.S. Attorneys Negar Tekeei and George D. Turner of the Southern District of New York are in charge of the prosecution, with assistance from Trial Attorneys Joshua Champagne and Larry Schneider of the National Security Division’s Counterterrorism Section.
Abdulrahman El Bahnasawy Sentenced to 40 Years in Prison for Plotting to Carry Out Terrorist Attacks in New York City for ISIS in Summer of 2016Read the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John C. Demers, the Assistant Attorney General for National Security, announced today that ABDULRAHMAN EL BAHNASAWY was sentenced to 40 years in prison for plotting to carry out terrorist attacks in New York City during the summer of 2016 in support of the Islamic State of Iraq and al-Sham (“ISIS”), a designated foreign terrorist organization. EL BAHNASAWY pled guilty on October 13, 2016, before U.S. District Judge Richard M. Berman to a seven-count Superseding Information charging EL BAHNASAWY with terrorism offenses. Judge Berman also imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “In the name of ISIS, Abdulrahman El Bahnasawy planned an elaborate attack to wreak havoc and destruction on New York City. He planned to detonate bombs in Times Square and the New York City subway system, and to shoot civilians at concert venues. Demonstrating his commitment to carry out the attacks, El Bahnasawy pinpointed bomb locations on a map of the subway system, and acquired an array of bomb-making materials. El Bahnasawy aspired, in his words, to ‘create the next 9/11.’ Thanks to our law enforcement partners in New York, nationally, and internationally, this potentially devastating plot was thwarted.”
Assistant Attorney General John C. Demers said: “El Bahnasawy conspired with others to conduct terrorist attacks in New York City in support of ISIS, and came into this country to carry them out. Today’s sentence reflects the severity of his conduct and holds him accountable for his terrorist activities. I want to commend the prosecutors, agents, and analysts who are responsible for this successful result. The National Security Division is committed to identifying and holding accountable those who seek to harm to our country and our citizens.”
According to the Indictment, Superseding Information, and other court filings:
Using encrypted electronic messaging applications, EL BAHNASAWY, a 20-year-old Canadian citizen and resident, plotted with Talha Haroon, a 20-year-old U.S. citizen residing in Pakistan, and Russell Salic, a 38-year-old Philippines citizen and resident, to conduct bombings and shootings in heavily populated areas of New York City during the Islamic holy month of Ramadhan in 2016, all in the name of ISIS (the “NYC Attacks”). EL BAHNASAWY acquired bomb-making materials and helped secure a cabin within driving distance of New York City to use for building explosive devices and staging the NYC Attacks. Haroon allegedly made plans to travel from Pakistan to New York City to join EL BAHNASAWY in carrying out the attacks. And as EL BAHNASAWY and Haroon prepared to execute the NYC Attacks, Salic allegedly wired money from the Philippines to the United States to help fund the terrorist operation.
An undercover FBI agent infiltrated the co-conspirators’ terrorist plot, posing as an ISIS supporter prepared to join in the attacks. The FBI arrested EL BAHNASAWY in May 2016 after he traveled from Canada to the New York City area in preparation for the attacks, and he has been in custody since that time. Haroon was arrested in Pakistan in September 2016, and Salic was arrested in the Philippines in April 2017, based on Complaints filed against them in Manhattan federal court, and they remain in foreign custody pending proceedings for their extradition to the United States.
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In addition to the prison term, EL BAHNASAWY, 20, of Mississauga, Canada, was sentenced to lifetime supervised release.
Mr. Berman and Mr. Demers praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the FBI’s Los Angeles and Denver Field Offices. Mr. Berman and Mr. Demers also thanked the Royal Canadian Mounted Police, the FBI’s Cleveland Field Office, the FBI’s Legal Attaché Offices in Canada, Pakistan, and the Philippines, the New York State Police, the Department of Justice’s Office of International Affairs, and the U.S. Attorney’s Office for the Central District of California for their assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Negar Tekeei and George D. Turner are in charge of the prosecution, with assistance from Trial Attorneys Joshua Champagne and Larry Schneider of the Department of Justice’s National Security Division.
The charges contained in the Complaints filed against Haroon and Salic are merely accusations, and Haroon and Salic are presumed innocent unless and until proven guilty.
9 Defendants Charged in Chicago in International Investigation Targeting “Romance Scams” and “Mystery Shopper” SchemesRead the Press Release
CHICAGO — Seven Chicago-area residents are among nine individuals arrested in the United States and Nigeria as part of an international investigation into online “romance scams” and “mystery shopper” schemes.
During the Chicago-based investigation, dubbed “Operation Gold Phish,” law enforcement identified a variety of cyber-enabled fraud schemes allegedly carried out by conspirators in the U.S. and Nigeria. One of the alleged schemes involved “romance scams,” in which a conspirator builds trust with a victim through a purported online romance before convincing the victim to send money to a predetermined recipient. The conspirators initially contacted victims online via applications and websites, including Match.com, Facebook, and Instagram, the complaint states. Another alleged cyber-enabled fraud involved a “mystery shopper” scheme, in which conspirators fraudulently offered victims opportunities to work as a mystery shopper and receive commissions for evaluating retailers. The victim received a check through the U.S. mail with instructions to deposit it in a personal bank account, withdraw the money in cash, and wire it to a third party. The check turned out to be fake, and the victims were defrauded of the wired money, the charges allege.
A criminal complaint filed Dec. 4, 2018, in U.S. District Court in Chicago charged nine defendants with conspiracy to commit wire fraud. Arrests were recently carried out in Illinois, Texas, and Nigeria, and all of the defendants are now in law enforcement custody. The Nigerian Economic and Financial Crimes Commission is conducting a related investigation of other individuals in Nigeria.
The U.S. charges were 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; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. Valuable assistance was provided by the Nigerian Economic and Financial Crimes Commission. Assistant U.S. Attorneys Peter S. Salib and Charles W. Mulaney represent the government.
Arrested on the U.S. charges in Illinois were DANIEL SAMUEL ETA, also known as “Captain” and “Etaoko,” 35, of Skokie; BABATUNDE LADEHINDE LABIYI, also known as “Junior,” 20, of Chicago; BARNABAS OGHENERUKEVWE EDJIEH, 29, of Chicago; SULTAN OMOGBADEBO ANIFOWOSHE, also known as “Ayinde,” 26, of Chicago; BABATUNDE IBRAHEEM AKARIGIDI, also known as “AK,” 39, of Chicago; MIRACLE AYOKUNLE OKUNOLA, 21, of Chicago; and OLUROTIMI AKITUNDE IDOWU, also known as “Idol,” 55, of Chicago. Arrested in Texas was ADEWALE ANTHONY ADEWUMI, 27, of Richardson, Texas. Arrested in Nigeria was OLANIYI ADELEYE OGUNGBAIYE, also known as “DonChiChi,” 26, of Lagos, Nigeria.
In addition to the romance and mystery shopper schemes, the complaint accuses the conspirators of engaging in various other cyber-enabled scams, including investment and employment frauds. The conspirators also defrauded victims by targeting corporate email accounts, the complaint states. In the email scam, known as a business email compromise, the conspirators fraudulently obtained usernames and passwords or sent “spoofing” email messages that claimed to be from a company employee, instructing the victim to change the wire instructions for bank payments. Per the instructions given in the fraudulent emails, the victims unknowingly wired funds to bank accounts controlled by the conspirators that had been opened in fictitious names utilizing fake passports, the complaint states.
The charge in the complaint carries a maximum sentence of 20 years in prison. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Tuesday 18 December 2018
York Man Sentenced to 50 Months’ Imprisonment for Being A Convicted Felon in Possession of AmmunitionRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 17, 2018, U.S. District Court Judge Sylvia H. Rambo sentenced Kevin O’Neal Thomas, age 33, of York, Pennsylvania, to 50 months’ imprisonment for possession of ammunition.
According to United States Attorney David J. Freed, on June 21, 2017, Thomas possessed ammunition at Stockade Tavern, York, when Thomas shot a 9mm round into the floor of the bar.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department and is being prosecuted by Assistant U.S. Attorney Meredith A. Taylor.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Wilmington Man Sentenced on Drug ChargesRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that United States District Judge Louise W. Flanagan, sentenced GARY NIXON, 56, of Wilmington to 131 months’ imprisonment, followed by 3 years of supervised release. An additional 36 months imprisonment sentence was imposed for a supervised release violation with 24 months of that sentence to run consecutive to the 131 months. NIXON total combined active sentence is 155 months.
NIXON was charged in a two-count indictment filed in the Eastern District of North Carolina on May 22, 2018. On July 25, 2018, NIXON pled guilty to conspiracy to possess with intent to distribute 100 grams or more of heroin and possession with the intent to distribute heroin.
On April 23, 2018 deputies with the New Hanover County Sheriff’s Office received information that NIXON was in possession of heroin while traveling from the Washington, D.C. area to Wilmington, North Carolina. Law enforcement performed a traffic stop of this vehicle when it entered New Hanover County. During the search of the vehicle, deputies found a pill bottle containing approximately 90 grams of heroin. NIXON was a passenger in the car and admitted that the heroin belonged to him.
According to law enforcement, the investigation revealed that NIXON was involved with the distribution of more than 500 grams of heroin from October 2017 until the time of his arrest. NIXON was on Federal supervised release at the time of his arrest for a Federal crack cocaine conviction.
This case is part of the DEA led OCDETF operation “All the Pieces Matter”. This is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Drug Enforcement Administration and the New Hanover County Sheriff’s Office. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the United States.
Wilkes-Barre Woman Sentenced for Stealing Checks from Mail ReceptaclesRead the Press Release
WILKES-BARRE – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 17, 2018, United States District Court Judge A. Richard Caputo sentenced Niskauri DeJesus-Toribio, age 21, who resided in Wilkes-Barre, Pennsylvania, to a time-served sentence of one day and two years of supervised release for stealing mail.
According to United States Attorney David J. Freed, DeJesus-Toribio was convicted of conspiring with others to steal checks from mail receptacles throughout Luzerne County, deposit the checks into accounts under their control, and withdraw the funds in cash. As part of the sentence, Judge Caputo ordered DeJesus-Toribio to pay $16,310.91 to the victims of her crimes. DeJesus-Toribio’s co-defendant, Michael Mejia, was previously convicted and sentenced to approximately six months of imprisonment.
The investigation was conducted by United States Postal Inspection Service. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Washington, D.C. Man Sentenced to Prison for Attack Outside D.C. CourthouseRead the Press Release
A Washington, D.C. man was sentenced to 18 months in prison for his April attack on a federal prosecutor outside the Superior Court for the District of Columbia, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Maurice Hight, 28, who pleaded guilty on Oct. 10 to one count of felony assault on a federal official, was sentenced by U.S. District Judge Paul L. Friedman of the District of Columbia to serve 18 months in prison followed by three years of supervised release. According to admissions made in connection with his plea agreement, on April 5, 2018, Maurice and his sister and co-defendant, Tiera Hight, 21, were in a courtroom in the Superior Court for the District of Columbia waiting for a verdict against their brother, who was being tried for murder. After the guilty verdict, Maurice and Tiera Hight exited the courthouse and waited outside. Several minutes later, the murder victim’s daughter exited the courthouse, escorted by a federal prosecutor. As they approached the street, Tiera Hight walked directly towards the pair and she and Maurice Hight began to circle them. Tiera Hight then began to spit on the murder victim’s daughter and physically attacked her. The federal prosecutor intervened, but Tiera Hight continued her attack. Maurice Hight then joined the fight, forcibly grabbing the federal prosecutor, pulling her down and punching her in the right side of the face with a closed fist. The federal prosecutor fell hard to the ground and sustained swelling and bruises to her face and arm. Two deputy U.S. Marshals in the area placed Maurice Hight under arrest, and Maurice Hight proceeded to spit in the face of one of the deputy U.S. Marshals.
“The Department of Justice is committed to protecting the safety of our federal officials,” said Assistant Attorney General Benczkowski. “As this case demonstrates, we will not tolerate any violence against our federal prosecutors for doing their jobs in upholding the rule of law.”
Tiera Hight is scheduled to be sentenced on Feb. 19, 2019 before Judge Friedman.
The Criminal Investigations and Intelligence Unit for the U.S. Attorney’s Office for the District of Columbia investigated this case. Trial Attorneys Jennifer A. Clarke and Lauren Bell of the Criminal Division’s Public Integrity Section are prosecuting the case.
United States Attorney announces efforts to fight violent crime in Rapides Parish through firearms prosecutionsRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced today a new effort underway to reduce violent crime in the Rapides Parish area by partnering with federal, local and state law enforcement through the Project Safe Neighborhoods Program.
Mr. Joseph’s focus on violent crime is part of the Department of Justice’s ongoing efforts to increase targeted prosecutions of violent crime through the Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. It is an evidence-based program proven to be effective at reducing violent crime. In the past year, the U.S. Attorney’s Office for the Western District of Louisiana has prosecuted more than 200 defendants throughout the district, many of which have been in the Alexandria area, for firearm related offenses, including felons and drug dealers in possession of firearms.
In Rapides Parish, this focus includes sending law enforcement into the communities to conduct what are referred to as knock and talks. Today, the U.S. Attorney’s Office joined with the ATF, FBI, Louisiana State Police, Rapides Parish District Attorney’s Office, Rapides Parish Sheriff’s Office, Alexandria Police Department, Pineville Police Department, and Louisiana Probation and Parole to promote public safety in areas that have seen an increase in violent crime. By increasing the visibility of federal, state and local law enforcement agencies, they will inform citizens of prevention and deterrence efforts, as well as services available to the public.
Another avenue of prosecution that Joseph’s office is focused on, is cases arising from individuals submitting false information on forms at gun shops, pawnshops, sporting goods stores, or any retail establishment where firearms are sold, in order to purchase a firearm illegally for themselves or for someone else. It is a felony under federal law for someone to lie on a background check form to try to hide past criminal convictions or protective orders, and is punishable by up to 10 years in prison. This year, the U.S. Attorney’s office has charged eight individuals in U.S. District Court with felony charges for making false statements during purchases of firearms.
“The aim of these prosecutions is to remove the most violent and dangerous offenders from our streets,” Joseph stated. ”We stand with our law enforcement partners in confronting head-on, the violence, gun crime and drug abuse that plaque our communities. We will not be deterred, and we will continue to step up the pressure on the bad actors. Our message is clear, if you threaten the safety and security of our communities, you face the very real prospect of going to federal prison.”
The Western District of Louisiana consists of 42 of Louisiana’s 64 parishes and encompasses two-thirds of the State of Louisiana. This area covers the cities of Alexandria, Lafayette, Lake Charles, Monroe and Shreveport.
U.S. Postal Service Employee Charged with Embezzlement Through Postal Money OrdersRead the Press Release
BOSTON – A U.S. Postal Service (USPS) employee was charged yesterday in federal court in Boston with embezzling over $18,000.
Rashayna Seney, 25, of Randolph, was charged in an Information with one count of embezzlement and theft of public money, property or records.
According to the charging document, Seney began working for USPS around 2016, most recently as a Sales & Service Distribution Associate at the Waban Post Office. In this role, Seney had the ability to issue foreign and domestic postal money orders. Seney engaged in a scheme in which she issued money orders to friends and then voided the transactions so that her friends could deposit the orders without ever paying for them. Additionally, Seney used counterfeit bills in exchange for some money orders that her associates then cashed. It is alleged that Seney’s scheme cost the USPS over $18,000.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, and a $250,000 fine or twice the gross gain or loss, whichever is greater. 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; Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office; Joseph W. Cronin, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the Information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Army Veteran and Former Government Employee Indicted for Wire FraudRead the Press Release
SAN FRANCISCO - A federal grand jury indicted Malik Swinton for wire fraud and identity theft, announced United States Attorney Alex G. Tse; U.S. Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division, Special Agent in Charge James Wahleithner; U.S. Department of Justice Office of the Inspector General, Los Angeles Field Division, Special Agent in Charge James K. Cheng; Social Security Administration Office of Inspector General Special Agent in Charge Robb Stickley; Office of Personnel Management Acting Inspector General Norbert Vint; and U.S. Department of Labor Office of Inspector General Special Agent in Charge Abel Salinas.
The indictment describes various claims that Swinton, 40, of Las Vegas, Nevada, made to the Department of Veterans Affairs, the Social Security Administration, and the Department of Labor. According to the indictment, Swinton was discharged from the U.S. Army in February 2001. That month, Swinton submitted a disability claim with the U.S. Department of Veterans Affairs. In the application, Swinton listed, among other physical ailments, degenerative joint disease of the left knee and right knee, and pain in both feet and both ankles. He continued to receive benefits even after he enrolled as an undergraduate at the University of Oklahoma in August 2002 and competed in the Big 12 Indoor Track and Field Championships.
According to the indictment, in July 2012 Swinton applied to the Department of Veterans Affairs for additional disability benefits, claiming that he was unable to work due service-connected post-traumatic stress disorder. Swinton claimed that he suffered from PTSD after his “squad leader pulled his weapon and shot [his] platoon sergeant” in front of him and then later threatened to “kill or hurt Swinton or [his] family if [he] told anyone.” According to the indictment, no such incident occurred.
Further, the indictment alleges that from April through October 2012, Swinton devised a plan to submit false information to the Social Security Administration when he applied for disability benefits from that agency. In April, Swinton submitted a letter in connection with a request for benefits that Swinton claimed was from a doctor. The letter stated Swinton suffered from a number of medical conditions including PTSD and depression. Later, in October 2012, Swinton submitted a second letter to bolster his claim. The second letter was supposedly written by a separate doctor. In reality, neither letter was written or authorized by the persons who supposedly wrote them and both letters contained false information.
Finally, in April 2012, Swinton submitted an application to the U.S. Department of Labor for workers’ compensation for injuries that he supposedly sustained while working for the U.S. Department of Justice’s Bureau of Prisons. Swinton claimed that he suffered from PTSD as a result of a “stressful, hostile, and harassing” work environment. According to the indictment, Swinton repeatedly submitted fraudulent forms and letters, purportedly written by various doctors, to support his workers’ compensation claim. Swinton also never disclosed to the Department of Labor that he was receiving disability benefits from the VA and the Social Security Administration.
In sum, Swinton was charged with seven counts of wire fraud, in violation of 18 U.S.C. § 1343 and one count of identity theft, in violation of 18 U.S.C. § 1028A(a)(1).
Defendant was arrested on December 14, 2018, and he made his initial appearance in federal court in Las Vegas before the Honorable George Foley, Jr. on December 17, 2018. Swinton was released on bond and ordered to appear for further proceedings in San Francisco on December 21, 2018 before the Honorable Sallie Kim.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment and a fine of $250,000, plus restitution. In addition, if convicted of the identity theft count, Swinton faces a mandatory two years in prison consecutive to any other sentence. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Special Assistant U.S. Attorney Christopher Vieira is prosecuting the case with the assistance of Kimberly Richardson. The prosecution is a result of an investigation by the Offices of Inspectors General of the Department of Veterans Affairs, the Department of Justice, the Social Security Administration, the Office of Personnel Management, and the Department of Labor.
Two-Time Drug Felon Sentenced to 120 Months for Role in Gun Store BurglaryRead the Press Release
SYRACUSE, NEW YORK – Omar DeJesus, age 32, of Amsterdam, New York, was sentenced yesterday to 120 months in prison for transporting, storing, and possessing firearms stolen from Target Sports, Inc., a federally licensed firearms dealer in Schenectady County.
The announcement was made by United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge Norman A. Mordue also sentenced DeJesus to 3 years of supervised release and ordered that he pay restitution in the amount of $48,775.
DeJesus, who has previous state and federal felony drug convictions, pled guilty on May 17, 2018. As part of his plea, DeJesus admitted that he allowed Christian Roman and Jose Fontanez to store dozens of stolen firearms at his residence and later helped them hide some of those firearms in a remote location. DeJesus also admitted that he introduced Roman and Fontanez to another man, Onic Martinez, who retrieved the stolen firearms from a storage locker in Schenectady, New York, where Roman and Fontanez hid them shortly after the October 22, 2017 burglary. In exchange for his assistance, DeJesus received a stolen Sig Sauger 9mm pistol, which DeJesus subsequently sold to another individual in exchange for $700. DeJesus was prohibited from possessing firearms because of his criminal record.
Fontanez, age 36, of Schenectady, pled guilty earlier this year to stealing the firearms from Target Sports, and other, related charges. He is scheduled to be sentenced on April 22, 2019.
Roman, age 24, of Schenectady, pled guilty last month to stealing the firearms from Target Sports. He is scheduled to be sentenced on April 10, 2019.
Dalmary Morales, age 37, of Schenectady; and Juan Saez, age 35, of Rochester, New York pled guilty earlier this year for their respective roles in stealing, transporting, and possessing the firearms. Morales and Saez are scheduled to be sentenced on April 22, 2019.
This case was investigated by the ATF, New York State Police, and the Glenville and Amsterdam Police Departments, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Two Men Sentenced to Prison Terms for Fatal Shooting in Northeast WashingtonRead the Press Release
WASHINGTON –Marco F. Williams, 25, and Barry J. Giles, 22, also known as “Juany,” both of Washington, D.C., were sentenced today to prison terms for the October 2016 shooting death of a man in the Fort Lincoln area of Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Williams pled guilty in October 2018 to voluntary manslaughter while armed. Giles pled guilty at the same time to one count of voluntary manslaughter and one count of carrying a pistol without a license. Both pleas took place in the Superior Court of the District of Columbia. The pleas, which were contingent upon the Court’s approval, called for a prison sentence for Williams of 186 months, or 15 ½ years, and a prison sentence for Giles of 102 months, or 8 ½ years. The Honorable Judith Bartnoff accepted the pleas and sentenced the men accordingly. Following their prison terms, the men will be placed on five years of supervised release.
The evidence in support of the guilty pleas showed that on the night of Wednesday, Oct. 5, 2016, Williams and Giles were in the Fort Lincoln neighborhood, where each of them had ties. Specifically, they were in the area of the 3100 block of Berry Road NE, where they spent time and drank alcohol with the victim, Timothy Lassiter, and others.
Both Williams and Giles had pistols. In the course of the evening, Williams and Giles resolved to shoot and kill Mr. Lassiter, 36. At 11:42 p.m., Williams, armed with a 9mm semi-automatic pistol, fired four shots at Mr. Lassiter, striking him twice. Four 9mm cartridge cases fired from the same gun were recovered in the area where Mr. Lassiter’s body was found by responding medics and police officers.
The evidence established that after Mr. Lassiter was shot by Williams, Giles went through Mr. Lassiter’s pockets and removed items of personal property.
Mr. Lassiter was transported by ambulance to a hospital and was pronounced dead early on Oct. 6, 2016. Following Mr. Lassiter’s funeral on Saturday, Oct. 15, 2016, Giles went on social media and posted a video of himself talking about the shooting of Mr. Lassiter. In the video, which was soon thereafter deleted, Giles boasted and bragged about his role in the shooting.
Warrants for the arrest of the two defendants were issued on March 1, 2018. Giles was arrested on March 5, 2018, and Williams, who was otherwise serving a sentence, was arrested on March 29, 2018. Both have been held without bond since their arrests.
In accepting the plea agreements and the agreed-upon sentences, the Court stated it would sentence Williams – the admitted shooter of Mr. Lassiter – to 186 months, or 15 ½ years in prison, and would sentence Giles – who went through Lassiter’s pockets in the aftermath of the shooting and removed items of personal property – to 102 months, or 8 ½ years in prison. The Court did not issue a Judgment and Commitment Order today, as it wants time to consider and to be briefed on the ramifications of the recently enacted Youth Rehabilitation Amendment Act of 2018. Accordingly, the Court set a hearing for Jan. 15, 2019. It is expected that on that date the Court will formally impose sentences in accord with the plea agreements that were reached.
In announcing the sentences, U.S. Attorney Liu and Chief Newsham commended the work of detectives of the Criminal Investigations Division’s Homicide Branch, forensic scientists from the District of Columbia Department of Forensic Sciences, who processed the crime scene, and officers of MPD’s Fifth Police District, who responded to the shooting. They also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys David Misler and Michael D. Brittin; Criminal Investigators Durand Odom and Mark Crawford; Paralegal Specialist Debra Joyner, and Investigative Analysts Shannon Alexis and Zachary McMenamin.
Two Men Sentenced for Armed RobberyRead the Press Release
United States Attorney Ron Parsons announced that two men were sentenced for the November 2017 armed robbery of the Phillips 66 Speedy Mart in Spearfish, South Dakota, by Chief Judge Jeffrey L. Viken, U.S. District Court.
David Jackson Jr., age 25, of Sturgis, South Dakota, pleaded guilty to Use and Brandishing of a Firearm During the Commission of a Crime of Violence on August 9, 2018. He was sentenced on November 30, 2018, to 7 years in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Adam Peters, age 22, of Belle Fourche, South Dakota, pleaded guilty to Interference with Commerce by Robbery and Use and Brandishing of a Firearm During the Commission of a Crime of Violence. He was sentenced on December 17, 2018, to 10 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund as well as restitution in an amount to be determined.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Spearfish Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Jackson and Peters were immediately turned over to the custody of the U.S. Marshals Service.
Two L.A. Fashion District Executives and Their Import-Export Company Sentenced in Scheme to Launder Money for Drug CartelsRead the Press Release
LOS ANGELES – Morad “Ben” Neman and Hersel Neman – the owners and top executives of Pacific Eurotex Corp., an import-export textile company based in the Los Angeles Fashion District – each received federal prison sentences today for their roles in a “Black Market Peso Exchange” scheme to launder money for international drug cartels.
Morad “Ben” Neman, 58 of Westwood, the chief executive officer of Pacific Eurotex, was sentenced to two years in federal prison, to be followed by six months of home confinement. In addition to the prison term, Neman is jointly liable with the company to forfeit $3,178,230 million to the government.
Morad Neman pleaded guilty to conspiring to structure monetary transactions with a domestic financial institution, conspiring to defraud the United States by obstructing the lawful functions of the Internal Revenue Service, subscribing to and filing a false 2013 tax return that understated income he received from Pacific Eurotex, and aiding and assisting in the filing of another false 2013 tax return. When he pleaded guilty in December 2017, Morad Neman admitted to structuring frequent deposits of the cash in amounts less than $10,000 to avoid a bank reporting requirement that would have triggered the attention of law enforcement.
Hersel Neman, 59 of Beverly Hills, the chief financial officer of Pacific Eurotex, was sentenced to 18 months in federal prison, to be followed by six months of home confinement. He pleaded guilty to conspiring to launder money, conspiring to defraud the United States by obstructing the lawful functions of the IRS, and subscribing to and filing a false tax return. Hersel Neman is liable to forfeit approximately $370,000.
Pacific Eurotex itself was sentenced to three years of probation and was ordered to pay a fine of $400,000 for its conviction on charges of conspiring to launder money and conspiring to structure monetary transactions with a domestic financial institution.
Hersel Neman and Pacific Eurotex pleaded guilty in December 2017 to using the company to launder large amounts of cash that they deliberately ignored were drug trafficking proceeds. Both defendants admitted in court papers that they did not report to federal officials the receipt of the bulk cash.
The Neman brothers and their company were sentenced by United States District Judge John A. Kronstadt, who will issue a final order related to criminal fines for the three defendants.
This case was the result of an investigation into Fashion District businesses using “Black Market Peso Exchange” schemes to launder narcotics proceeds for international drug cartels. The Nemans were arrested in September 2014 on the same day that approximately 1,000 law enforcement officials executed dozens of search warrants in the Fashion District and seized more than $100 million in laundered drug money.
The Black Market Peso Exchange is one of the largest mechanisms by which international drug cartels obtain the proceeds of illicit drug sales in the United States, according to court documents. This type of scheme allows drug traffickers who have their proceeds in U.S. currency to convert it to a different currency, such as Mexican pesos, via the sale of goods shipped across international borders.
In a typical Black Market Peso Exchange scheme, drug cartels sell their cash proceeds to a money broker who finds businesses in a foreign country that purchase goods from U.S. companies and who need dollars to pay for these goods. The money broker then arranges for delivery of the illegally-obtained dollars to U.S.-based vendors such as Pacific Eurotex. These dollars are then used to pay for the goods purchased by the foreign businesses. Once the goods are shipped to and sold by the foreign business, the money – now in the local, non-U.S. currency – is turned over to the money broker, who then pays the drug cartel in the foreign country’s local currency.
Pacific Eurotex received, laundered and structured approximately $370,000 in bulk cash delivered on four separate occasions over 2½ months in 2013 by an undercover agent posing as a money courier, according to court documents. The company laundered this money after being specifically advised by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations that bulk cash payments were frequently derived from illegal activity and that it was required to report cash transactions involving more than $10,000 in currency.
The defendants admitted in court documents that they instructed other people to deposit the cash into the personal Wells Fargo bank account of Hersel Neman’s wife. In total, 384 deposits totaling nearly $3.18 million were divided into increments of less than $10,000 to prevent Wells Fargo from filing a currency transaction report with the U.S. Treasury Department, according to court documents.
In September 2018, Mehran Khalili, 50, of Beverly Hills, who is a brother-in-law of Hersel Neman, was found guilty by a federal judge of one count of conspiracy to structure financial transactions to avoid detection by law enforcement. He faces a statutory maximum sentence of 10 years in federal prison when he is sentenced by Judge Kronstadt on January 31.
Another defendant in the case, Alma Villalobos, 56, of Arleta, pleaded guilty in March 2018 to one felony count of conspiracy to cause Pacific Eurotex to fail to file reports of currency transactions over $10,000 in a non-financial trade or business. She also faces a statutory maximum sentence of 10 years in prison at her sentencing hearing, which is scheduled for January 24.
The investigation into Pacific Eurotex was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorneys Julie J. Shemitz, Jamie A. Lang and Puneet V. Kakkar of the Organized Crime Drug Enforcement Task Force.
Two Glendale, Arizona Individuals Plead Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kevin Ruany Grijalva-Soto, age 29, of Glendale, Arizona, and Leslie Azucena Rubio-Rodriguez, age 28, of Glendale, Arizona, entered guilty pleas to one count each of Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2, punishable by not less than 10 years imprisonment and not more than life imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleged that on or about September 18, 2018, within the Eastern District of Oklahoma, the defendants, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the pleas and ordered the completion of the presentence investigation reports.
Assistant United States Attorney Dean Burris represented the United States.
Tucker County residents indicted for methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Four Parsons, West Virginia residents are named in an indictment alleging a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Three men and one woman were indicted by a federal grand jury sitting in Clarksburg on November 6, 2018. The three men are accused of selling methamphetamine from December 2017 to March 2018 in Tucker and Randolph Counties.
Dustin Bruce Moran, age 32, was indicted on one count of “Conspiracy to Distribute Methamphetamine,” two counts of “Aiding and Abetting Distribution of Methamphetamine,” one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Possession of a Firearm in Furtherance of a Drug Offense.”
John Luther Boyles, age 62, was indicted on one count of “Conspiracy to Distribute Methamphetamine,” one count of “Aiding and Abetting Distribution of Methamphetamine,” five counts of “Distribution of Methamphetamine,” one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Aiding and Abetting Maintaining Drug-Involved Premises.”
Phillip Grant Boyles, age 32, was indicted on one count of “Conspiracy to Distribute Methamphetamine,” one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Aiding and Abetting Distribution of Methamphetamine.”
Donna Alyce Boyles, age 51, was indicted on one count of “Aiding and Abetting Maintaining Drug-Involved Premises.” She and John Boyles are accused of maintain a residence located at 128 Main Street in Parsons, West Virginia, to manufacture, sell or use methamphetamine.
The government asking for forfeiture of $30,893 seized from Dustin Moran in April 2018, $598 seized from John and Donna Boyles in March 2018, and the property at 128 Main Street in Parsons.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Trenton Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Timothy Levesque, 53, of Trenton, Maine, pleaded guilty today in U.S. District Court to being a felon in possession of a firearm.
According to court records, on the evening of May 12, 2018, the U.S. Coast Guard boarded the defendant’s boat off the coast of Lamoine, Maine while conducting a routine maritime safety and law enforcement patrol. The boat was registered to the defendant and he was the only person on board at the time. A search of the pilot house revealed four firearms within feet of where the defendant had been sitting. The defendant was aware that the firearms were on the boat and was prohibited from possessing firearms as the result of prior felony drug possession convictions.
The defendant faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the U.S. Coast Guard Investigative Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Maine Marine Patrol.
Three Defendants Indicted for Conspiracy to Commit Murder, Drug Trafficking, and Related CrimesRead the Press Release
SAN FRANCISCO – A federal grand jury in San Francisco returned a superseding indictment charging Marcus Etienne, a.k.a. Hitler, Mario Robinson, and Burte Gucci Rhodes, a.k.a. Moeshawn, with murder-for-hire, a number of firearms and drug distribution offenses, and related crimes, announced United States Attorney Alex G. Tse, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett and Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Tara Sullivan. Etienne and Robinson also are charged with racketeering conspiracy. The superseding indictment, filed today, amends racketeering, murder, and conspiracy charges originally filed February 16, 2017, and updated August 3, 2017, against Etienne, Robinson, and other defendants.
The charges stem from a multi-state marijuana trafficking organization and the murder of Trince Thibodeaux on March 22, 2016, at 90th Ave. and International Boulevard in Oakland, Calif. The superseding indictment alleges that Etienne, 37, of Opelousas, La., ran an enterprise consisting of more than five members who conducted a continuing and extensive narcotics conspiracy and criminal organization. The criminal organization and conspiracy distributed marijuana from California to Louisiana and Texas.
The superseding indictment filed today makes clear that Etienne conspired with, Robinson, 35, of Oakland, and Rhodes, 37, of Oakland, to murder Thibodeaux on March 22, 2016, in Oakland. According to the indictment, Rhodes shot and killed Thibodeaux and $5000 was promised in exchange for the murder.
Etienne and Robinson also are charged with racketeering conspiracy and being part of an enterprise referred to in the indictment as the “Etienne Enterprise,” based in St. Martin Parish La. The Etienne Enterprise engaged in narcotics distribution, assault, robbery, extortion, extortionate collection of extensions of credit, murder for hire, murder, money laundering, illegal firearms possession, and obstruction of justice. Among the activities of the racketeering conspiracy was a gambling operation through a large-scale dogfighting ring. The racketeering conspiracy existed since January 7, 2013, and its members operated in Louisiana, in the Northern District of California, in Texas, and elsewhere.
The defendants are charged in the superseding indictment as follows:
DEFENDANT
CHARGES
STATUTE
MAXIMUM STATUTORY PENALTY
Marcus Etienne a/k/a Hitler
Conspiracy to Distribute and possess with intent to distribute 1,000 kilograms or more of marijuana
21 U.S.C. § 846, 841, and (b)(1)(A)
Not less than 10 years or more than life in prison
$10,000,000 fine
After filing of prior conviction, if applicable, not less than 20 years or more than life in prison and
$20,000,000 fine
Murder during a narcotics offense
21 U.S.C. § 848(e)(1)(A)
Not less than 20 years and not more than live in prison
$250,000 fine
Use or possession of a firearm in murder
18 U.S.C. § 924(j)
Not less than 10 years or more than life in prison.
$250,000 fine
Conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity
18 U.S.C. § 1962(d)
Life in prison
$250,000 fine
Murder in aid of racketeering
18 U.S.C. § 1959(a)(1)
Mandatory life in prison
$250,000 fine
Conspiracy to commit murder in aid or racketeering
18 U.S.C. § 1959(a)(5)
Ten years in prison
$250,000 fine
Murder for hire
18 U.S.C. § 1958
Mandatory life in prison
$250,000
Conspiracy
18 U.S.C. § 371
Five years in prison
$250,000 fine
Assault with a deadly weapon in aid of racketeering
18 U.S.C. § 1959(a)(3)
20 years in prison
$250,000 fine
Conspiracy to commit money laundering
18 U.S.C. § 1956(h)
20 years in prison
$250,000 fine
Money laundering
(2 counts)
18 U.S.C. § 1956(a)(1)(A)(i) and (a)(1)(B)(i)
(each count)
20 years in prison
$250,000 fine
Mario Robinson
Conspiracy to distribute and possess with intent to distribute 1,000 kilograms or more of marijuana
21 U.S.C. § 846, 841, and (b)(1)(A)
Not less than 10 years or more than life in prison
$10,000,000 fine
After filing of prior conviction, if applicable, not less than 20 years or more than life in prison and
$20,000,000 fine
Murder during a narcotics offense
21 U.S.C. § 848(e)(1)(A)
Not less than 20 years and not more than live in prison
$250,000 fine
Use or possession of firearm in murder
18 U.S.C. § 924(j)
Not less than 10 years or more than life in prison.
$250,000 fine
Conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity
18 U.S.C. § 1962(d)
Life in prison
$250,000 fine
Murder in aid of racketeering
18 U.S.C. § 1959(a)(1)
Mandatory life in prison
$250,000 fine
Murder for hire
18 U.S.C. § 1958
Mandatory life in prison
$250,000
Conspiracy
18 U.S.C. § 371
Five years in prison
$250,000 fine
Conspiracy to commit money laundering
18 U.S.C. § 1956(h)
20 years in prison
$250,000 fine
Money laundering
(3 counts)
18 U.S.C. § 1956(a)(1)(A)(i) and (a)(1)(B)(i)
(each count)
20 years in prison
$250,000 fine
Burte Gucci Rhodes
a/k/a Moeshawn
Murder for hire
18 U.S.C. § 1958
Mandatory life in prison
$250,000
Use or possession of a firearm to commit murder
18 U.S.C. § 924(j)
Not less than 10 years or more than life in prison.
$250,000 fine
Conspiracy
18 U.S.C. § 371
Five years in prison
$250,000 fine
Possession with intent to distribute heroin
21 U.S.C. § 841(a)(1) and (b)(1)(B)(i)
Not less than 5 years or more than 40 years in prison
$5,000,000 fine
Possession of firearms in connection with drug trafficking offenses
18 U.S.C. § 924(c)(1)(A) & (B)
Not less than 5 and 10 years consecutive in prison
$250,000 fine
Additional fines, forfeitures, restitution, and special assessments also may be imposed. However, any sentence after conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
An indictment merely alleges that crimes have been committed, and the defendants is presumed innocent until proven guilty beyond a reasonable doubt.
Etienne remains in custody based on the February 16, 2017, indictment. Robinson was arrested in Louisiana on August 4, 2017, and appeared on August 7, in federal court in the Western District of Louisiana. Rhodes was arrested December 5, 2018, on a federal arrest warrant. The case is assigned to the Honorable William Alsup, United States District Judge, for the Northern District of California.
The case is being prosecuted by Assistant United States Attorneys Meredith Osborn and William Frentzen with the assistance of Jessica Meegan and Bridget Kilkenny. This case is being investigated by the Federal Bureau of Investigation’s San Francisco, New Orleans, Houston Divisions; IRS-CI; Oakland Police Department; with the assistance from the St. Landry Parish, Louisiana, Sheriff’s Office, Opelousas, Louisiana Police Department.
Tahlequah Man Pleads Guilty to Ammunition PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jeremiah Raye Post, age 33, of Tahlequah, Oklahoma, entered a guilty plea for Felon In Possession Of Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about August 16, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Tahlequah Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the pleas and ordered the completion of the presentence investigation reports.
Assistant United States Attorney John David Luton represented the United States.
Swink Woman Pleads Guilty to Theft of Federal Program FundsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lori Rae Baskin, age 50, of Swink, Oklahoma, entered a guilty plea to Theft from Organization Receiving Federal Program Funds, in violation of Title 18, United States Code, Section 666(a)(1)(A), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both.
The Information alleged that from on or about February 3, 2012, until on or about June 30, 2015, in the Eastern District of Oklahoma, the defendant, being an agent, employee, and officer of Swink Dependent School District No. C-21, an agency of a State government, which received in excess of $10,000 in federal benefits in each one year period from 2012 through 2015, stole, obtained by fraud, and without authority knowingly converted to the use of a person not the rightful owner, property of a value of $5,000 or more, owned by, under the care of, and under the control of Swink Dependent School District No. C-21.
The charges arose from an investigation by the Department of Education Office of Inspector General (OIG) and the Federal Bureau of Investigation (FBI).
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
Stilwell Woman Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Chassidy Dawn Burke, age 37, of Stilwell, Oklahoma, entered a guilty plea to Drug Conspiracy, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D), punishable by not less than 10 years and not more than life imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleged that on a date unknown to the Grand Jury in 2014, and continuing until on or about January 29, 2018, within the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and intentionally combine, conspire, confederate and agree, with others known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: possession with intent to distribute and distribution of 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A); and possession with intent to distribute less than 50 kilograms of a mixture or substance containing a detectable amount of Marijuana, a Schedule I Controlled Substance.
The charges arose as a result of an investigation by the Drug Enforcement Administration (“DEA”), the Oklahoma Bureau of Narcotics (“OBN”), the National Guard Counterdrug Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Indian Affairs, the U.S. Marshals Service, the Cherokee Nation Marshal Service, the Oklahoma Highway Patrol, the District 27 District Attorney’s Drug Task Force, the Adair County Sheriff’s Office, the Tulsa County Sheriff’s Office, the Stilwell Police Department, the Broken Arrow Police Department, and the Tulsa Police Department.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
Stanislaus County Woman Arrested for Stealing Money from Social Security and Other Benefit RecipientsRead the Press Release
SACRAMENTO, Calif. — Lorene Deanda, 59, of Ceres, was arrested today on an indictment charging her with 10 counts of mail fraud and one count of conversion of Social Security benefit funds, U.S. Attorney McGregor W. Scott announced today. Deanda was charged by federal grand jury on December 6, 2018.
According to court documents, Deanda was employed by a charitable organization in Modesto. Deanda participated and ultimately managed the organization’s representative payee program. This program assisted recipients of Social Security and other federal and state benefits that could not physically manage their own financial affairs. Deanda, on behalf of the charitable organization, would set up bank accounts for the beneficiaries and receive benefit funds into those accounts. Deanda’s duties included paying beneficiaries’ bills and necessities from those accounts and benefit funds. However, from April 2009 to May 2015, Deanda stole benefit funds from the accounts and beneficiaries and spent the money for her personal expenses. The amount of stolen funds exceeded $516,000.
This case is the result of an investigation by the Social Security Administration, Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Henry Z. Carbajal III is prosecuting the case.
If convicted, Deanda faces a maximum statutory penalty for mail fraud of 20 years in prison with a $250,000 fine and a maximum penalty of five years in prison for conversion of Social Security benefits. 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Springdale Man Sentenced to over 21 Years in Federal Prison for Online Enticement of A MinorRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Eleuterio Flores, age 34, of Springdale, Arkansas was sentenced yesterday to 262 months in federal prison followed by twenty-five years of supervised release and ordered to pay a $10,000.00 fine on one count of Online Enticement of a Minor. The Honorable Timothy L. Brooks, United States District Judge, presided over the sentencing hearing in Fayetteville.
According to court records, in September of 2016, Springdale Police Department developed information that Flores used Facebook Messenger, pretending to be a female pimp named “Elyzabet Estrada” and made contact with a 14 year old female, and enticed a person the 14 year old female to engage in sexual intercourse with him at the Hilltop Inn in Springdale, Arkansas in exchange for $1,200. Flores admitted to making Facebook accounts for people he claimed were involved in prostitution and escort services.
A federal grand jury indicted Flores in March 2017, and he pled guilty in July 2018.
This case was investigated by the FBI and the Springdale Police Department. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
South Carolina Man Sentenced to over 18 Years in Prison for Trafficking MethamphetamineRead the Press Release
Gulfport, Miss – Erick Alejandro Contreras, age 20, of Greenville, South Carolina, was sentenced today by U.S. District Judge Sul Ozerden to 223 months in federal prison followed by 5 years of supervised release, for conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
Contreras pled guilty on August 17, 2018, to one count of conspiracy to possess with intent to distribute methamphetamine. On January 30, 2018, Contreras and three others were stopped in a vehicle in Hancock County traveling from Texas to South Carolina. They were transporting approximately 4 kilograms of 99% pure methamphetamine.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.
Sixty-Year-Old Lapwai Man Sentenced to 27 Months for AssaultRead the Press Release
COEUR D'ALENE – Jason Bryon Redheart, 60, of Lapwai, Idaho, was sentenced yesterday to 27 months in federal prison for a January 2018 assault with a dangerous weapon which happened in Lapwai, Idaho, U.S. Attorney Bart M. Davis announced. U.S. District Judge David C. Nye also ordered Redheart to serve three years supervised release after he is finished serving his prison term. Redheart was indicted by a federal grand jury on February 21, 2018.
According to court records, Redheart repeatedly hit the 64-year-old victim with a metal baseball bat after Redheart became convinced she had taken his apple cider vinegar. Redheart apologized in court and his attorney requested no jail time due to Redheart’s lack of criminal history. Judge Nye agreed with the U.S. Attorney’s Office that the violent attack deserved prison time.
This case was investigated by the Federal Bureau of Investigation and the Nez Perce Tribal Police.
Silverhill Man Sentenced to More Than Seven Years for Firearms CrimesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Frank Lee McCall, III, 29, of Silverhill, Alabama, was sentenced today for stealing a firearm and for being a felon in possession of firearms. McCall pled guilty to the two charges in August of 2018.
United States District Court Judge William H. Steele imposed a sentence of 87 months imprisonment on each count, with the sentences to run concurrently. He ordered that McCall serve a three-year term of supervised release when he is released from custody, during which he will undergo mental health counseling and treatment as well as drug abuse counseling and treatment. No fine was imposed but McCall was ordered to pay $200 in special mandatory assessments.
The case was investigated by the Baldwin County Sheriff’s Office, the Loxley Police Department and the FBI Safe Streets Task Force. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.
Sentence: Prison for KCK Man in Barbershop-Based Drug RingRead the Press Release
KANSAS CITY, KAN. – A man who was part of a $4 million drug conspiracy operating out of a barbershop in Kansas City, Kan., was sentenced Tuesday to 52 months in federal prison, U.S. Attorney Stephen McAllister said.
Jason Bell, 38, Kansas City, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine. In his plea, Bell admitted he was part of a drug ring with co-defendant Edwin Pacheco. Pacheco owned Cocoliso’s Barbershop at 1201 Minnesota in Kansas City, Kan., where Bell was employed.
During the course of a federal investigation, Bell sold thousands of dollars’ worth of methamphetamine to undercover investigators. Bell was arrested when investigators served a search warrant at the barbershop. They found more than 12 pounds of methamphetamine in Pacheco’s Jeep Liberty and seized more than $15,000 from the barbershop’s closet. Investigators calculated that the conspirators sold approximately $4 million worth of illegal drugs.
McAllister commended the Drug Enforcement Administration and Assistant U.S. Attorney Trent Krug for their work on the case.