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Monday 17 December 2018
U.S. Trustee Program Files Objection to the Appointment of the Debtor’s Proposed Future Claimants’ Representative in in Re the Fairbanks Company, No. 18-41768 (Bankr. N.D. Ga.)Read the Press Release
The Justice Department’s U.S. Trustee Program (USTP) filed on Friday an objection to a debtor company’s proposed candidate for appointment as a Future Claimants’ Representative (FCR) in a bankruptcy case involving a trust to compensate those suffering from asbestos disease. An FCR is appointed by the court to protect the interests of those exposed to asbestos products manufactured or sold by a debtor, but who have not yet become sick. Current claimants are represented by attorneys who often control the asbestos trusts to the detriment of future asbestos victims.
This is the second time this year that the USTP has opposed the selection of a candidate proposed by a debtor company and endorsed by the plaintiffs’ lawyers representing current claimants.
In its objection, the USTP argued that the court is required to select the best candidate without deference to the debtor or plaintiffs’ lawyers. The objection asserts that the proposed candidate currently serves as FCR for several other trusts and has other connections to trusts that have contained inadequate safeguards against fraudulent claims, inflated professional fees, and other costs that threaten to deplete the trusts and reduce compensation to future claimants. The USTP asked the court to adopt an open selection process that allows candidates without connections to the professionals in the case or other conflicts to be considered. As noted in its brief, “the USTP was created to be the ‘watchdog’ for the bankruptcy system to ensure that cases are not administered for the narrow benefit of the lawyers and other professionals instead of stakeholders such as creditors and employees.”
“In recent years, there have been credible allegations—and at least one court has found evidence—of misrepresentation, mismanagement, and abuse in the asbestos trust system,” said Principal Deputy Associate Attorney General Jesse Panuccio. “A significant contributing factor is the failure of courts to appoint independent future claimants’ representatives who are free from conflicts of interest, including conflicts caused by their involvement in other asbestos trusts. The Department of Justice is committed to protecting the rights of victims of asbestos disease and the integrity of the bankruptcy system.”
The USTP is a component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and enforcing the bankruptcy laws. Learn more about the Program at https://www.justice.gov/ust.
U.S. Attorney’s Office for Western Pennsylvania Collects a Record $145 Million in Civil and Criminal Actions for U.S. Taxpayers in 2018Read the Press Release
(PITTSBURGH) - U.S. Attorney Scott W. Brady announced today that the United States Attorney’s Office for the Western District of Pennsylvania collected a record $145M in civil and criminal actions in FY 2018.
Of the total amount collected, the U.S. Attorney’s Office, working with partner agencies, collected $10,604,018 in FY 2018 by forfeiting criminal assets, which was one of the largest amounts for similarly-sized U.S. Attorney’s Offices throughout the country. This $10.6M went to victims of crime and to 29 state and local police departments throughout western Pennsylvania.
The forfeiture of criminal proceeds is a critical part of DOJ’s mission. In addition to restoring money to crime victims, forfeited assets help fund victims’ programs that provide critical services to victims. Forfeited criminal assets are also used to further the mission and effectiveness of our state and local law enforcement partners through police training and the purchase of new equipment including body cameras, canines and bulletproof vests.
"When criminals steal, defraud, and harm members of the community, we will prosecute them, forfeit the proceeds of their crimes, and return the money to the victims," said U.S. Attorney Brady. "By returning money to victims, and by helping our law enforcement partners purchase much needed equipment, we are enhancing our mission to keep the citizens of western Pennsylvania safe."
U.S. Attorneys’ Offices are also responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs. These programs provide important funding for crime victims who might otherwise receive no compensation for their injuries. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Small Business Administration, the Department of Education, the Department of Defense and the Environmental Protection Agency.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.
U.S. Attorney’s Office Provides Human Trafficking Training to Local Law EnforcementRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri A. Lydon announced today that over the last two weeks, the United States Attorney’s Office provided training to South Carolina’s Tri-County Human Trafficking Task Force on methods of investigating and prosecuting federal human trafficking cases.
The training was part of a three-day course entitled “Advanced Human Trafficking Investigations Law Enforcement Course.” The course was sponsored by the Charleston County Sherriff’s Office, Homeland Security Investigations, and ERASE, a U.S.-based nonprofit organization focused on eliminating child trafficking through education and professional training.
Originally set to include a single training session, U.S. Attorney Lydon stated a second class was organized due to high levels of interest among local law enforcement agencies. “We applaud our local law enforcement partners for taking such an interest in this important issue. Human trafficking is a worldwide crisis sustained by a vast criminal network that exploits vulnerable children and adults, including right here at home,” said U.S. Attorney Lydon. “Successfully prosecuting these cases depends on the cooperation of state and federal law enforcement agencies. Through courses like this, we are taking the steps necessary to tackle this problem head-on in South Carolina.”
Instructors presented on a range of topics relating to human trafficking, including statistics provided by ERASE’s 2012 Survivor Survey. According to the survey, approximately 75% of underage sex trafficking victims reported being sold online. Additionally, the average age of entry into sex trafficking for a child victim in the United States was reported to be 12 years old for a girl and 11 years old for a boy. It is estimated that one in three teens living on the street will be lured toward trafficking within 4-8 years of leaving home.
U.S. Attorney Lydon also announced that each of the four U.S. Attorney’s Offices in South Carolina now have designated points of contact for issues relating to human trafficking prosecutions.
Instructors at the course included Major Rick Hoffman, Raleigh Police Department (retired); Lori A. Sims, AMP, MPP; Homeland Security Investigations Special Agent Victor Williams (retired); and Assistant United States Attorneys Jamie Schoen and Matt Austin from the Charleston Office.
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U.S. Attorney's Office Announces Federal Initiative Aimed at Curbing Mail TheftRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced a joint statewide federal initiative with a goal to catch and federally prosecute mail thieves this holiday season and beyond.
During Monday’s press conference, Hiland was joined by Duane “DAK” Kees, United States Attorney for the Western District of Arkansas, Mona Hernandez of the United States Postal Inspection Service, and representatives from multiple local police departments to announce “Operation Porch Pirate.” The initiative brings together local police departments and the federal government to provide greater accountability—and deterrence—for would-be mail thieves.
“We know that mail thieves do not take off for the holidays,” Hiland said. “In fact, this is their busiest time of the year. We want to work closely with our local partners to bring these thieves to justice. This is a crime having a significant impact on our local communities and it is a painful one to hard-working families. By marshaling the resources of law enforcement agencies on multiple levels, we want to hit back at those stealing Christmas packages.”
Also on Monday, Hiland announced the unsealing of the first complaint from Operation Porch Pirate, which involves charges against Michael Crutchfield, 57, of North Little Rock. According to the federal complaint, on November 30, 2018, an individual returned home to find Crutchfield parked in driveway of the residence. This homeowner saw Crutchfield throw several packages over a fence into a neighboring yard. Little Rock Police Department detectives later confirmed these packages were stolen from another residence. Two of the packages were delivered by the U.S. Postal Service, bringing the case within the jurisdiction of the federal government.
Crutchfield was initially arrested at the scene on state charges. The federal complaint charges Crutchfield with a violation of Title 18, United States Code, Section 1708, Theft or Receipt of Stolen Mail Matter, a felony. Upon arrest for this charge, Crutchfield will be arraigned by a United States Magistrate Judge and faces a maximum penalty of five years in prison and a fine of up to $250,000. Acting Little Rock Police Chief Alice Fulk said that many mail theft cases, including the case against Crutchfield, could end up as misdemeanor charges if only prosecuted in the state system.
“We appreciate being able to partner with the U.S. Attorney’s Office in prosecuting stolen mail and package cases,” Chief Fulk said. “This crime effects the quality of life for our residents. Anything we can do to strengthen the penalty for this is a positive. This initiative is very similar to the way we handle gun cases. It showcases the tremendous collaboration between the U.S. Attorney’s Office, the state Prosecutor’s Office and the Little Rock Police Department. We will take a case and pursue charges in the venue where an offender can get the most appropriate sentence.”
In addition to the federal complaint issued against Crutchfield, Hiland and Kees explained that their offices would be regularly reviewing mail theft cases submitted by local law enforcement agencies for possible federal prosecution. In addition to the Little Rock Police Department, also in attendance on Monday were officers from the Sherwood Police Department and Fort Smith Police Department, all of whom have made recent state arrests for charges related to mail theft.
Under the umbrella of Operation Porch Pirate, after a local agency makes a state arrest, the case file will be referred to the United States Postal Inspection Service, which will in turn send the case to the United States Attorneys’ Offices for review for federal prosecution.
“Our message to thieves this holiday season is simple: If it’s not yours, don’t take it,” U.S. Postal Inspector Hernandez said. “Today’s announcement should serve as a warning to would-be thieves that there are significant consequences for anyone who intends to steal mail. Protecting our employees, our customers, and the U.S. Mail is a top priority for the Postal Inspection Service, and we are committed to bringing mail thieves to justice.”
Hiland said that while Operation Porch Pirate is beginning during the holidays, as long as criminals keep trying to steal other people’s mail, his office will be ready and willing to prosecute, regardless the season.
“I am a firm believer that crime goes up when the cost to the criminal comes too cheap,” Hiland said. “The goal of Operation Porch Pirate is to make the decision to steal Christmas presents from the porches of people who pay the bills around here a very painful one. We know we can’t get them all, but we are going to evaluate each case our law enforcement partners present to us and work with our local prosecutors with a goal of holding these thieves accountable.”
A criminal complaint contains only allegations. A defendant is presumed innocent unless and until proven guilty.
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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:
@EDARNEWSU.S. Attorney Announces $110,000 Settlement with Tech Company and Its CEO to Resolve Allegations of False Claims on Defense Procurement ContractRead the Press Release
DENVER – Jason Dunn, U.S. Attorney for the District of Colorado, today announced that Progressive Technology Federal Systems, Inc. and its Chief Executive Officer have paid a combined $110,000 to settle allegations that the corporation and its CEO made false statements concerning a consultant’s security clearance and failed to disclose an organizational conflict of interest when bidding on a defense procurement contract.
One way federal government agencies can buy information technology services is by working with the National Institutes of Health’s Information Technology Acquisition and Assessment Center, or “NITAAC.” NITAAC is a government-wide program that enables agencies to contract for information technology. Other federal agencies, including the military, regularly work with NITAAC.
The United States’ allegations relate to a project in which NITAAC was used by the Army and the Air Force for a contract that was awarded to Progressive Technology Federal Systems, Inc., known as “PTFS.” The United States contends that in 2014, PTFS’s President and CEO, John Yokley, participated in preparing project specifications for a contract to be issued by NITAAC. The project then was offered by NITAAC for contract bids. PTFS then submitted its own proposal to take on the contract. In doing so, however, PTFS stated that it had no conflict of interest relating to the contract. This statement was false because PTFS had a conflict in that Mr. Yokley had provided input on project specifications that were included in the contract, thereby gaining a competitive advantage for PTFS. In addition, the project required security clearances, and PTFS falsely stated in its proposal that an individual who would participate in the project as a key “Subject Matter Expert” had an active Top Secret clearance. PTFS was awarded the contract. Funding for the contract was later terminated before PTFS could invoice more than $30,000. The United States claimed that this conduct violated the False Claims Act.
The claims settled by this agreement are allegations. In entering into this civil settlement, PTFS and Mr. Yokley did not admit liability. Under the agreement, PTFS paid $65,000, and Mr. Yokley paid $45,000, to resolve the allegations.
The United States Attorney’s Office thanks the National Reconnaissance Office’s Office of the Inspector General, Defense Criminal Investigative Services, and Air Force Office of Special Investigations for their excellent work. The United States was represented in this matter by Assistant United States Attorney Jasand Mock.
Two Plead Guilty to Federal Drug ChargesRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced today that two men pled guilty to drug charges in federal court in Bluefield. James Kelsor, 46, of Northfork, pled guilty to distribution of cocaine, admitting that on September 30, 2016, he distributed one-half gram of cocaine to an informant in Bluefield. He also admitted that he distributed cocaine to an informant in Bluefield on October 3 and October 5, 2016. He faces up to 20 years in prison when he is sentenced on April 2, 2019. The case was investigated by the Southern Regional Drug and Violent Crime Task Force.
Benjamin Allen III, 31, of Princeton, pled guilty to distributing hydromorphone. Allen admitted that on January 10, 2017, he distributed a hydromorphone pill to an informant in Princeton. He also admitted that he distributed hydromorphone pills on two other occasions in Princeton in January of 2017 and once in Bluefield in March of 2017, and that he possessed hydrocodone and hydromorphone pills with the intent to distribute them on March 28, 2017, at his residence in Princeton. Allen faces up to 210 months in prison when he is sentenced on April 2, 2019. The case was investigated by the Southern Regional Drug and Violent Crime Task Force, the Bluefield Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“Substance use disorder plagues every county in our state,” said United States Attorney Mike Stuart. “But in our southernmost counties that have been particularly ravaged by the drug epidemic, we are working with our law enforcement partners to prosecute peddlers of all poisons.”
Assistant United State Attorney John File is handling the prosecution of both cases. Senior United States District Judge David A. Faber presided over the plea hearings.
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Two Missouri, Two Colorado Defendants Indicted for $1.7 Million Marijuana ConspiracyRead the Press Release
KANSAS CITY, Mo. – Two Missouri residents and two Colorado residents have been indicted by a federal grand jury for their roles in a conspiracy to distribute more than $1.7 million of marijuana.
Christopher E. Buckingham, 42, of Versailles, Mo.; Natalie J. McNeil, 33, of Lee’s Summit, Mo.; her brother, Tanner L. McNeil, 28, of Denver, Colo.; and Benjamin T. Parker, 28, also of Denver, were charged in a two-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, Dec. 12, 2018. That indictment was unsealed and made public today upon Buckingham’s arrest and initial court appearance. The remaining defendants are not yet in custody.
The federal indictment alleges that Buckingham, Natalie McNeil, Tanner McNeil and Parker participated in a conspiracy to distribute 100 kilograms or more of marijuana from Aug. 28, 2015, to July 10, 2018. The indictment also charges Buckingham, Natalie McNeil, Tanner McNeil and Parker with participating in a money-laundering conspiracy during that time.
According to the indictment, conspirators purchased marijuana from sources in Colorado and shipped the marijuana to Missouri for further distribution. Conspirators sold the marijuana in Missouri, the indictment says, and funneled the proceeds back to Colorado by making deposits in multiple bank accounts at different locations. Deposits were simultaneously made in amounts designed, at least in part, to avoid federal transaction reporting requirements, the indictment alleges. Co-conspirators then allegedly withdrew the drug proceeds from bank locations in Colorado.
Members of the conspiracy allegedly deposited approximately $1,769,244 in cash proceeds from the distribution of marijuana in Missouri in bank accounts located in Missouri. The federal indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government any property derived from the proceeds of the drug-trafficking or money-laundering conspiracies, including a money judgment of $1,769,244.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Jess E. Michaelsen and Ashleigh A. Ragner. It was investigated by IRS-Criminal Investigation, the Kansas City, Mo., Police Department, the U.S. Postal Inspection Service, and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Two Metro Denver Women Prosecuted for Distributing Heroin Resulting in DeathRead the Press Release
DENVER – Two Metro Denver women charged with heroin distribution resulting in death made court appearances in U.S. District Court in Colorado last week, U.S. Attorney Jason Dunn, FBI Denver Division Special Agent in Charge Dean Phillips and the Denver Police Department announced. Kayla Pagano, age 24, appeared before a U.S. Magistrate Judge in U.S. District Court in Denver, where she was advised of her rights and the charge pending against her. Ariel Nicole Walker, age 30, pled guilty last week in U.S. District Court in Denver before Judge R. Brooke Jackson.
According to the stipulated facts contained in Walker’s plea agreement, on May 31, 2018, Walker went to Civic Center Park looking for someone who could sell her heroin. On that same day, E.N. drove to Civic Center Park looking for someone who could sell her heroin as well. At Civic Center Park, E.N. approached Walker and another party, asking if they could sell her any heroin. Walker asked if E.N. had a car, because that would enable them to meet Walker’s dealer in Westminster, Colorado. E.N. had a vehicle, and the three of them agreed to take it to meet Walker’s dealer at 88th and Garrison in Westminster.
At a gas station in Westminster, Walker met with Kayla Pagano from whom she allegedly purchased heroin. Walker sold some of that heroin to E.N., who injected it. After using the heroin, E.N. passed out and ultimately died in the backseat.
Police later found E.N.’s dead body in an alley in Denver. Based on the autopsy and toxicology results, the Denver Medical Examiner reached the opinion that E.N. died as a result of the toxic effects of heroin.
This case was investigated by the Denver Police Department with support from the FBI. The defendants are being prosecuted by Assistant U.S. Attorney Peter McNeilly.
The charges against Pagano are allegations, and she is presumed innocent unless and until proven guilty.
Two Men Charged with Conspiracy and Acting as Agents of a Foreign GovernmentRead the Press Release
ALEXANDRIA, Va. – An indictment was unsealed today charging two men with conspiracy, acting in the United States as unregistered agents of the government of Turkey, and making false statements to the FBI.
According to allegations in the indictment, Bijan Rafiekian, aka Bijan Kian, 66, of San Juan Capistrano, California, and Kamil Ekim Alptekin, 41, of Istanbul, a Turkish national with close ties to the highest levels of the Government of Turkey, were involved in a conspiracy to covertly influence United States politicians and public opinion against a Turkish citizen living in the United States whose extradition had been requested by the Government of Turkey. The plot included using a company founded by Rafiekian and a person referred to as “Person A” in the indictment. The company, referred to as “Company A” in the indictment, provided services based upon Person A’s national security expertise.
The indictment charges that the purpose of the conspiracy was to use Company A to delegitimize the Turkish citizen in the eyes of the American public and United States politicians, with the goal of obtaining his extradition, which was meeting resistance at the U.S. Department of Justice. At the same time, the conspirators sought to conceal that the Government of Turkey was directing the work. However, not only did Turkish cabinet-level officials approve the budget for the project, but Alptekin provided the Turkish officials updates on the work, and relayed their directions on the work to Rafiekian, Person A, and others at Company A.
According to allegations in the indictment, the scheme included using a Dutch company owned by Alptekin to appear to be the “client” of Company A and to pay the company’s fee of $600,000, which was to be paid in three installments. Alptekin made the payments from an account in Turkey. The indictment alleges that after Alptekin made the payments to Company A, it was to kick back 20 percent of the payments to Alptekin’s company in the Netherlands, and two such kickbacks were made.
Rafiekian is charged with conspiracy and acting in the United States as an unregistered agent of the government of Turkey. If convicted, he faces a maximum penalty of 5 years in prison for the conspiracy charge and 10 years in prison for the charge of acting as an agent of a foreign government.
Alptekin is charged with conspiracy, acting in the United States as an unregistered agent of the government of Turkey, and four counts of making false statements to the FBI. If convicted, he faces a maximum penalty of 5 years in prison for the conspiracy charge, 10 years in prison for the charge of acting as an agent of a foreign government, and 5 years in prison for each of the four false statement charges.
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, John C. Demers, Assistant Attorney General for National Security, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorney James P. Gillis and Trial Attorney Evan N. Turgeon of the Department of Justice’s Counterintelligence and Export Control Section 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 are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-457.
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.
Two Men Charged with Conspiracy and Acting as Agents of a Foreign GovernmentRead the Press Release
An indictment was unsealed today charging Bijan Rafiekian, aka Bijan Kian, 66, of San Juan Capistrano, California, and Kamil Ekim Alptekin, 41, of Istanbul, and a Turkish national, with conspiracy, acting in the United States as illegal agents of the government of Turkey, and making false statements to the FBI.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, made the announcement.
According to allegations in the indictment, the two men were involved in a conspiracy to covertly influence U.S. politicians and public opinion against a Turkish citizen living in the United States whose extradition had been requested by the Government of Turkey. The plot included using a company founded by Rafiekian and a person referred to as “Person A” in the indictment. The company, referred to as “Company A” in the indictment, provided services based upon Person A’s national security expertise.
The indictment charges that the purpose of the conspiracy was to use Company A to delegitimize the Turkish citizen in the eyes of the American public and United States politicians, with the goal of obtaining his extradition, which was meeting resistance at the U.S. Department of Justice. At the same time, the conspirators sought to conceal that the Government of Turkey was directing the work. However, not only did Turkish cabinet-level officials approve the budget for the project, but Alptekin provided the Turkish officials updates on the work, and relayed their directions on the work to Rafiekian, Person A, and others at Company A.
According to allegations in the indictment, the scheme included using a Dutch company owned by Alptekin to appear to be the “client” of Company A and to pay the company’s fee of $600,000, which was to be paid in three installments. Alptekin made the payments from an account in Turkey. The indictment alleges that after Alptekin made the payments to Company A, it was to kick back 20 percent of the payments to Alptekin’s company in the Netherlands, and two such kickbacks were made.
Rafiekian is charged with conspiracy and acting in the United States as an illegal agent of the government of Turkey. If convicted, he faces a maximum penalty of 5 years in prison for the conspiracy charge, and 10 years in prison for the charge of acting as an agent of a foreign government.
Alptekin is charged with conspiracy, acting in the United States as an illegal agent of the government of Turkey, and four counts of making false statements to the FBI. If convicted, he faces a maximum penalty of 5 years in prison for the conspiracy charge, 10 years in prison for the charge of acting as an agent of a foreign government, and 5 years in prison for each of the four false statement charges.
The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes. If convicted of any offense, the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney James P. Gillis of the Eastern District of Virginia and Trial Attorney Evan N. Turgeon of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Turtle Creek Woman Sentenced to Almost 10 Years in Prison for Violating Multiple Fraud, Identity Theft and Gun LawsRead the Press Release
PITTSBURGH - A former resident of Turtle Creek, Pennsylvania, has been sentenced in federal court to nine years and eight months in prison and three years of supervised release on her conviction of federal firearms laws, conspiracy to commit identity theft offenses, unauthorized use of counterfeit driver’s licenses and credit cards, wire fraud, aggravated identity theft, and accessing protected computers without permission, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Quinyahta Rochelle, 32.
According to information presented to the court, Rochelle participated in a number of different crimes. Between March 2016 and July 2016, Rochelle assisted another individual gain access to social media accounts of various celebrities by hacking into their accounts. During a search warrant related to that investigation, law enforcement executed a search warrant at her home, where the officers located several stolen firearms and many rounds of ammunition. Rochelle was a felon at the times of the search and therefore could not legally possess firearms or ammunition under federal law.
Contemporaneously with the execution of the arrest warrant on the firearm charge, law enforcement executed a second search warrant at her home based on information that Rochelle was engaged in a complex multi-state identity theft scheme. Ultimately, the investigation revealed that Rochelle obtained the names, dates of birth, social security numbers, credits cards, and other information through a variety of means, including through purchasing the material on the internet. Rochelle and her conspirators would then use that information to manufacture counterfeit credit cards and driver’s licenses, which they then used to make purchases and apply for credit both on-line and in person.
While on bond for all of these crimes, Rochelle continued to engage in identity theft related offenses. That conduct resulted in a third search warrant of her home, which led to additional evidence of her fraudulent conduct. She faces another yet unresolved indictment in connection with that activity.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Secret Service and the United States Postal Inspection Service, in conjunction with the multiple police departments in Pennsylvania, Ohio, and California, including police departments from Columbus, Ohio, Canfield, Ohio, Bucks County, Ohio, Allegheny County, Pennsylvania, Pittsburgh, Pennsylvania, Ross Township, Pennsylvania, Wilkins Township, Pennsylvania, and Los Angeles, California, for the investigation leading to the successful prosecution of Rochelle.
Tonalea Man Sentenced to Prison for Assaulting Navajo Nation OfficerRead the Press Release
PHOENIX – Today, Randell William Lane, 30, of Tonalea, Ariz. was sentenced by U.S. District Judge John J. Tuchi to 26 months’ imprisonment, to be followed by three years of supervised release. Lane, an enrolled member of the Navajo Nation, had previously pleaded guilty to assault on a federal officer.
On March 12, 2018, a Navajo Nation police officer was dispatched to try to locate Lane. After locating him, the officer attempted to place Lane under arrest for violations of tribal law. Lane resisted arrest, ran to his nearby vehicle, and grabbed a machete. After the officer persuaded Lane to drop the machete, Lane nonetheless lunged at the officer, began wrestling with him, and attempted to take the officer’s firearm. Lane was successfully arrested after a second officer arrived on scene.
The investigation in this case was conducted by the Federal Bureau of Investigation and Navajo Nation Department of Public Safety. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-18-08128-PCT-JJT
RELEASE NUMBER: 2018-168_Lane
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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.
Three felons plead guilty for possessing firearmsRead the Press Release
SHREVEPORT/ALEXANDRIA/LAKE CHARLES, La. – United States Attorney David C. Joseph announced that three felons pleaded guilty last week for possession of firearms.
Shreveport Felon Pleads Guilty to Possessing Semi-Automatic Pistol
SHREVEPORT - Dennis Lee Richardson, 29, of Shreveport, pleaded guilty on December 11, 2018 before U.S. District Judge S. Maurice Hicks Jr. to one count of felon in possession of a firearm. According to the guilty plea, law enforcement agents executed a search warrant on June 29, 2018 at a Prentiss Street residence. As agents approached the home, they saw Richardson and his girlfriend sitting in a parked car in the driveway. The agents also observed a loaded Glock semi-automatic pistol with an extended clip on the floorboard behind the driver’s seat. Richardson said his mother had purchased the firearm for him. He is a convicted felon who pleaded guilty on March 10, 2014 in Caddo Parish for attempted illegal carrying of weapons while in possession of controlled dangerous substances.
Richardson faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for February 28, 2019.
The ATF and the Caddo-Shreveport Narcotics Task Force conducted the investigation. Assistant U.S. Attorneys Jessica D. Cassidy and Earl M. Campbell are prosecuting the case.
Alexandria Felon Pleads Guilty to Possessing Pistol
ALEXANDRIA - Theodore Hines, 37, of Alexandria, pleaded guilty on December 11, 2018 before U.S. District Judge Dee D. Drell to one count of felon in possession of a firearm. According to the guilty plea, an Alexandria Police officer observed Hines on June 26, 2018 remove a pistol from his pocket and throw it to the ground. Hines told the police officer that he had the pistol to protect himself. After learning that Hines had five previous felonies and was not allowed to possess a firearm, the officer arrested Hines and took possession of the firearm, a loaded Kel-Tec .380-caliber pistol.
Hines was convicted in February of 2001 of possession of a Schedule IV controlled dangerous substance; he was convicted in December of 2003 of one count of possession of a Schedule V controlled dangerous substance, one count of possession of marijuana and one count of possession of a Schedule V controlled dangerous substance; and he was convicted in February of 2014 of possession with intent to distribute a Schedule II controlled dangerous substance.
Hines faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for March 7, 2019.
The ATF and the Alexandria Police Department conducted the investigation. Assistant U.S. Attorney Cadesby Cooper is prosecuting the case.
Lake Charles Felon Pleads Guilty to Possessing a Handgun
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that Keelan Arnold Broussard, 27, of Lake Charles, pleaded guilty on Friday before U.S. District Judge Dee D. Drell to one count of felon in possession of a firearm. According to the guilty plea, law enforcement agents executed a search warrant at Broussard’s home on May 23, 2018 and discovered a Taurus .38 Special handgun, and two .38 caliber rounds in Broussard’s bedroom. Broussard admitted that he owned the firearm.
At the time of his arrest, Broussard had a criminal history dating back to January 5, 2011, including previous convictions in the 14th Judicial District Court for possession with intent to distribute marijuana, possession of cocaine, and attempted possession of a weapon by a convicted felon. As a previously convicted felon, he was prohibited from possessing a firearm.
Broussard faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for March 25, 2019.
The ATF and the Calcasieu Parish Sheriff’s Office along with the Combined Anti-Drug Task Force conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Each case was brought as part of Project Safe Neighborhoods (PSN), a program that 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 re-entry programs for lasting reductions in crime.
Three Dominican Republic Nationals Charged with Trafficking over 1,000 Kilograms of Cocaine, Following High-Speed Chase and Apprehension on the High SeasRead the Press Release
St. Thomas, USVI – Edwin Vargas, 31, Dany Perez-Brito, 44, and Lenin Cornelio-Perez, 32, all of the Dominican Republic, were charged with Conspiracy to Possess and Possession of a Controlled Substance on Board a Vessel Subject to the Jurisdiction of the United States, United States Attorney Gretchen C.F. Shappert announced. The three men made their initial appearance before U.S. Magistrate Judge Ruth Miller on Saturday. After preliminary and detention hearings on Monday, Judge Miller ordered all three men detained.
The complaint alleges that Vargas, Perez-Brito, and Cornelio-Perez were aboard a go-fast boat detected by United States Coast Guard (USCG) aircraft personnel about 65 nautical miles north of San Juan, Puerto Rico, navigating on a southerly course. The vessel did not display any indicia of nationality. Following detection by the USCG, the go-fast boat changed course, and two USCG cutters were diverted to intercept it. The vessel led authorities on a ten-hour high-speed chase in international waters between Puerto Rico and St. Thomas. Approximately 96 nautical miles north of St. Thomas, the go-fast boat’s engines malfunctioned, leaving the vessel dead in the water. USCG authorities proceeded to board the vessel at 2:18 a.m. on December 11th and discovered 52 bales, pproximately 1,132 kilograms, of a white powdery substance that field tested positive for cocaine.
This case is being investigated by the Drug Enforcement Administration (DEA), the USCG, Customs and Border Protection, Air and Marine Operations (CBP AMO), and Homeland Security Investigations (HSI). The case is being prosecuted by Assistant United States Attorney Meredith J. Edwards.
United States Attorney Shappert reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Tampa Man Sentenced to 70 Months in Federal Prison for Tax and Identity Theft OffensesRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Cedric D. Moultry (26, Tampa) to 5 years and 10 months in federal prison for access device fraud and aggravated identity theft stemming from the filing of fraudulent tax returns using stolen identities. The court also ordered Moultry to forfeit more than $95,000, which is a portion of the proceeds traceable to the offenses, and to repay the IRS more than $509,000.
Moultry had pleaded guilty on September 11, 2018.
According to court documents, on September 9, 2012, officers from the Tampa Police Department conducted a traffic stop on a vehicle that Moultry was driving. Moultry, who had an outstanding warrant for his arrest, was alone in the car. During a search of the vehicle, officers recovered notebooks that contained names, dates of birth, Social Security numbers, tax filing information, refund amounts, and debit card account information for more than 500 identity theft victims. Moultry’s finger and palm prints were recovered from various pages of the notebooks. Subsequent investigation revealed that approximately 214 fraudulent federal income tax returns had been electronically filed using some of the identities recovered from Moultry’s vehicle. The returns claimed refunds totaling approximately $1.8 million. The IRS released refunds totaling more than $509,000, all of which were directed to reloadable debit cards found in Moultry’s possession.
This case was investigated by the Tampa Police Department and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Statement of U.S. Attorney David C. Weiss in U.S. v. Wilmington Trust Corporation, et al. SentencingsRead the Press Release
WILMINGTON, Del. – The downfall of Wilmington Trust is a tragedy. It’s a tragedy to the over 700 employees who lost their jobs as a result of the Bank’s fire-sale acquisition by M&T. It’s a tragedy to those former employees who built the Bank into something to be proud of over the last century. It’s a tragedy to this Community, which lost what was thought to be a stable employer and a gold-standard financial institution. And it didn’t have to be.
Banks are entrusted with a fiduciary responsibility to safeguard their depositors’ funds. That is one of the primary reasons they are required to regularly file financial disclosures with the regulators responsible for ensuring the safety and soundness of those banks. Similarly, a publicly traded company is required to make certain disclosures to the investing public. Regulators and the public look to these filings to make informed decisions. In so doing, they have an absolute right to expect that the financial information disclosed is accurate. To function effectively, both our regulatory system and our free market system demand it. And the law requires it.
WTC’s 2009 filings with the SEC and the Federal Reserve were false. The Bank’s certified submissions grossly understated the quantity of past due loans on WTC’s books, and thereby misled regulators and the public about the financial health of WTC’s portfolio. In particular, the 2009 year-end filings failed to disclose that the Bank had waived 300M in loans more than 90 days past due, and had mass extended another 800M in commercial loans without the proper due diligence. At the same time, the Bank went to the market and asked investors for $287MM in additional capital.
Robert Harra, as WTC’s President and Chief Operations Officer, established an aggressive sales culture that ignored sound risk assessment in commercial real estate lending. As the economy turned, these practices came home to roost. But rather than acknowledge the inability of these borrowers to repay their loans, Harra embraced the waiver practice as a means of concealing the trouble faced by the Bank.
David Gibson, as the Bank’s Chief Financial Officer, was the ultimate decision maker on financial reporting. He knew about the true condition of the commercial loan portfolio--- the hundreds of millions of dollars in past due loans that were not included in the 2009 filings with the SEC and Federal Reserve. Nonetheless he certified the Bank’s financials as accurate and overstated the health of the loan portfolio, while marketing the stock offering to the investing public.
These actions do not define defendants’ lives. As you’ve heard, they were successful and productive both professionally and personally. They are supported by their family, friends and members of our community whose lives they impacted in positive ways. But, they did violate the law. They committed serious federal crimes and failed in their responsibilities to the Bank, its employees and shareholders. Justice demands accountability.
Ultimately, this case, like many other prosecutions is about the human cost of defendants’ actions—the 700 WTC employees who lost their jobs, the shareholders who lost their investments, and in some instances their life savings, the defendants’ families, and a community that lost a bank that had been a proud and successful institution for decades.
Statement of U.S. Attorney Geoffrey S. Berman on the Conviction of Woman Who Unlawfully Climbed the Statue of LibertyRead the Press Release
U.S. Attorney Geoffrey S. Berman said: “Therese Okoumou was convicted in federal court today for a dangerous stunt last July 4th that endangered herself and the NYPD and U.S. Park Police officers who rescued and apprehended her. The act of climbing the base of the Statue of Liberty went well beyond peaceable protest, a right we certainly respect. It was a crime that put people at grave risk. We commend Judge Gorenstein’s decision to hold Therese Okoumou accountable for her dangerous and reckless conduct.”
Six Additional Defendants Indicted in Cocaine Conspiracy Stretching from El Paso, Texas to BuffaloRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a second superseding indictment charging six additional defendants with conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine. Daniel Sterling, a/k/a Pancho, a/k/a Jose, Martin Lopez, Ivan Rene Rios Bustillos, Adrian Grier, Shamar Davi, a/k/a Fatboy, and Gabrielle McGrady. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Previously indicted were Eduardo Enrique Valdez, Edgar Pavia, Adrian Goudelock, a/k/a AD, a/k/a Ace, a/k/a Ace Boogs, Eric Young, Lance Parker, and Jai Hunter.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the second superseding indictment and previously filed indictment and complaints, an investigation began following the seizure of approximately 10 kilograms of cocaine and $259,960 in U.S. currency. On October 3, 2017, defendants Valdez, Pavia, and Goudelock met in Cleveland, OH, prior to the shipment of a bulk quantity of cocaine from El Paso, Texas, to Buffalo, NY. On October 19, 2017, Homeland Security Investigations Special Agents conducted a controlled delivery of 10 sham bricks of cocaine in Pembroke, NY, which resulted in the federal arrest of defendant Valdez.
In July 2018, investigators intercepted wire and electronic communications between defendants Pavia and Goudelock through court-authorized wiretaps. Intercepted calls and messages revealed that a bulk shipment of cocaine was to be imminently delivered to Goudelock in the Buffalo area. Goudelock was also expected to provide bulk drug proceeds. In a conversation on July 25, 2018, Pavia informed Goudelock that he would be receiving 17 kilograms of cocaine.
That same day, law enforcement officers seized approximately 17 kilograms of cocaine from defendant Lance Parker during the execution of a search warrant. Law enforcement officers also searched a tractor trailer, driven by defendant Young, located on Slade Avenue in West Seneca, NY and recovered 52 shrink-wrapped and taped bundles of currency, predominantly in $10,000 bundles. In total, $519,580 in U.S. currency was seized from a bag. Officers also located a hidden compartment in the rear wall of the sleeper area of the tractor cab and recovered three plastic wrapped packages of bulk US currency totaling over $145,000.
In September 2018, investigators intercepted another series of wire and electronic communications between defendants Pavia and Goudelock discussing the shipment of another 20 kilograms of cocaine, which led to their arrests.
On December 5 and 6, 2018, investigators intercepted a series of wire and electronic communications between defendants Sterling and Lopez discussing plans for an exchange of bulk quantity cocaine in Louisville, KY. Lopez was observed operating a truck pulling a horse trailer, Rios-Bustillos was observed operating a pick-up truck with Mexican license plates, and Sterling was observed operating another pickup truck. After law enforcement observed Sterling and Lopez meet, the defendants were arrested. Simultaneously, Rios-Bustillos, who was parked nearby in his own truck not far from the meeting spot, left the scene on foot. Ultimately, Rios-Bustillos obtained a ride from two individuals, to whom he admitted that he had just delivered cocaine and that law enforcement was looking for him. After those individuals contacted the police, Rios-Bustillos was taken into custody.
During a search of Lopez’s horse trailer, officers recovered 20 kilograms of cocaine in a hidden compartment, as well as over $600,000 from a duffle bag in Sterling’s truck, and more than $100,000 from Sterling’s residence.
The second superseding indictment is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the New York State Police, under the direction of Major Edward Kennedy; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; and Customs and Border Protection, Air and Marine Unit, under the direction of Brian Manaher, Director, Marine Operations. Additional assistance was provided by the New York National Guard.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Sioux City Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty December 17, 2018, in federal court in Sioux City.
Melvin John Begay, 36, from Sioux City, Iowa, was convicted of conspiracy to distribute methamphetamine.
At the plea hearing, Begay admitted that from November 2015 through March 2016, he was involved in a conspiracy to distribute methamphetamine in and around Sioux City. Begay also admitted to distributing methamphetamine on two occasions in January 2016 to individuals cooperating with law enforcement.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Begay remains in custody of the United States Marshal pending sentencing. Begay faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $5,000,000 fine, and at least 4 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Mikala M. Steenholdt and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4017. Follow us on Twitter @USAO_NDIA.
Sioux City Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty December 17, 2018, in federal court in Sioux City.
Ernesto Bedolla, 31, from Sioux City, Iowa, was convicted of conspiracy to distribute methamphetamine. Bedolla had moved to Mexico just prior to an Indictment being filed in July 2015, but later returned to the United States.
At the plea hearing, Bedolla admitted that from 2014 through June 2015, he was involved in a conspiracy that distributed over ½ pound of methamphetamine in the Sioux City area. Bedolla also admitted to distributing methamphetamine on five separate occasions in 2015 to individuals cooperating with law enforcement.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Bedolla remains in custody of the United States Marshal pending sentencing. Bedolla faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Mikala M. Steenholdt and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-4044. Follow us on Twitter @USAO_NDIA.
Roff Man Pleads Guilty to Methamphetamine Distribution, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Stephen-Dean Dollard Schmidt, age 27, of Roff, Oklahoma, entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841 (b)(1)(B), punishable by not less than 5 nor more than 40 years imprisonment, up to a $5,000,000.00 fine, or both; and to Possession Of Firearm In Furtherance Of Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c), punishable by not less than 5 years imprisonment to run consecutive to any other term of imprisonment imposed, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about April 15, 2018, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with the intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment further alleged that on or about April 15, 2018, in the Eastern District of Oklahoma, the defendant, did knowingly possess a firearm in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine, as alleged in the Indictment.
The charges arose as a result from an investigation by the Pontotoc County Sheriff’s Office, the Ada 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 plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Rock Hill Gang Member Sentenced to Federal PrisonRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Kenterius Dyshae Hinton, age 24, of Rock Hill, was sentenced to 36 months (3 years) imprisonment, which will be followed by 3 years of supervised release. This past September, Hinton plead guilty to being a felon in possession of a firearm and ammunition.
Evidence presented in court established that on November 29, 2017, at approximately 11:21p.m., officers with the Rock Hill Police Department were on patrol in an unmarked patrol car when they observed a car, using their high beam front headlights, coming towards them. A traffic stop was conducted and Hinton found to be the driver. Officers smelled marijuana as they approached the car and when they asked Hinton, a known gang member, and the passenger about it, they stated that they had smoked marijuana earlier and that the odor was on their clothes. A search of car revealed a loaded Taurus .45 caliber handgun underneath the center console, a loaded Smith and Wesson .45 caliber handgun underneath the passenger seat, and a marijuana grinder with marijuana residue. Both Hinton and the passenger were arrested on state charges of unlawful carrying of a firearm and advised of their rights. After waiving their rights, Hinton admitted that the “black gun was mine” [the Taurus .45 caliber] and the passenger admitted that the silver gun [the Smith and Wesson .45 caliber] was his gun.
Hinton, who was on state probation at the time of the instant offense, is prohibited under federal law from possessing firearms and ammunition based upon prior state convictions for burglary 2nd degree, where he entered a dwelling armed with a firearm, possession of a weapon during a violent crime, and attempted armed robbery. The passenger was not a convicted felon, so his firearm charge remained in state court.
Chief United States District Judge Terry L. Wooten of Columbia accepted the guilty plea and imposed the sentence. Assistant United States Attorneys Stacey D. Haynes and Alyssa Richardson both of the Columbia office handled the case.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Rock Hill Police Department. This case was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Rochester Man Pleads Guilty to Gun and Drug Charges, Forfeits over $230,000 of Drug ProceedsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Ramon Perdomo, 38, of Greece, NY, pleaded guilty to possession with intent to distribute 28 grams or more of crack cocaine, and being a felon in possession of a firearm and ammunition, before Chief U.S. District Judge Frank P. Geraci, Jr. The charges carry a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Katelyn Hartford, who is handling the case, stated that law enforcement officers executed a search warrant at the defendant’s residence at 164 Sheraton Drive in the Town of Greece on April 20, 2018. During the search, officers found approximately 80 grams of crack cocaine, 42 grams of powder cocaine, and $238,237 United States currency, which consisted of proceeds from the defendant’s cocaine drug sales. Officers also found a 9mm semi-automatic pistol and bullets in a closet located off the kitchen, as well as evidence of drug dealing and packaging throughout the house. At the time of his arrest, Perdomo was on probation for a prior felony conviction.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Ray Donovan, Special Agent-in-Charge; the Monroe County Sheriff’s Office and the Monroe County Heroin Task Force, under the direction of Sheriff Todd Baxter; the Rochester Police Department, under the direction of Chief Mark Simmons; the Gates Police Department, under the direction of Chief James VanBrederode; and the Monroe County DA’s Office, under the direction of District Attorney Sandra Doorley.
Sentencing is scheduled for March 11, 2019, at 12:00 p.m. noon before Chief Judge Geraci.
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Registered Sex Offender Sentenced to 17 Years in Prison for Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of BRIAN ALAN KAELBLE, 33, to 212 months in federal prison for receipt of child pornography. KAEBLE, who has two prior convictions in the States of Missouri and Kansas for crimes related to child pornography, pleaded guilty on August 14, 2018, to a criminal information. He was sentenced December 12, 2018, by Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota.
According to KAELBLE’s guilty plea, on November 3, 2017, law enforcement officers executed a federal search warrant at KAELBLE’s residence in Brooklyn Center. KAELBLE admitted to the officers that he was downloading child pornography, both at home and while at work. KAELBLE worked delivering pizzas. Officers seized electronics from the residence.
More than 85,000 files containing child pornography were found during a forensic review of the electronics seized from KAELBLE’s bedroom, many of the files contained pornography depicting very young children.
This case was prosecuted by Assistant U.S. Attorney Carol M. Kayser. Ms. Kayser observed that Mr. Kaelble was a “purposeful” and “prolific” collector of child pornography. “The Court’s sentence of 212 months ensures that Mr. Kealble will not be able to hurt children for a very long time,” said Assistant United States Attorney Carol M. Kayser.
United States Attorney Erica MacDonald thanks the FBI and the Minneapolis Police Department for their work in the investigation.
Defendant Information:
BRIAN ALAN KAELBLE, 33
Brooklyn Center, MN
Convicted:
- Receipt of Child Pornography, 1 count
Sentenced:
- 212 months imprisonment
- 20 years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Red Lake Man Pleads Guilty to MurderRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of MICHAEL WAYNE WHITEFEATHER, 18, to murder in the second degree. WHITEFEATHER entered his guilty plea today before Judge Susan Richard Nelson in United States District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea, during the early morning hours of April 28, 2018, the defendant was traveling in a car on the Red Lake Indian Reservation and saw Anthony Allen Wells and another male walking in a parking lot near the Red Lake Skate Park. WHITEFEATHER admitted to getting out of the car with a shotgun and chasing after the victim and the other male. WHITEFEATHER eventually caught up to the victim and shot him in the face, which resulted in the victim’s death.
This case is the result of an investigation conducted by the Red Lake Department of Public Safety, the FBI Headwaters Safe Trails Task Force, the Paul Bunyan Drug Task Force, the Bemidji Police Department, the Beltrami County Sheriff's Office, and United States Customs and Border Protection. This case is part of Project Safe Neighborhoods, an initiative that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
This case is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Defendant Information:
MICHAEL WAYNE WHITEFEATHER, 18
Red Lake, Minn.
Convicted:
- Murder in the second degree, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Queens Man Sentenced to More Than 30 Years’ Imprisonment for Murdering Employee of Long Island Convenience Store During a RobberyRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Jermaine Jackson was sentenced by United States District Judge Sandra J. Feuerstein to 365 months’ imprisonment, to be followed by five years’ supervised release, for the murder of Edwin Lopez, an employee of a convenience store in Valley Stream, New York. Jackson pleaded guilty to the charge in December 2017.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Jackson senselessly murdered a hard-working man who was just trying to support his wife and teenage daughter. While this sentence cannot return Mr. Lopez to his family and community, it will ensure that others will be protected from Jackson for decades to come and it will make other criminals think twice before taking a life,” stated United States Attorney Donoghue. “It is my hope that today’s sentence brings some measure of closure for the Lopez family.”
“The actions of Mr. Jackson brought an unknowable grief to the Lopez family that will be felt for years to come,” stated ATF Special Agent-in-Charge Benedict. “Today’s sentence provides some semblance of closure to a family that never deserved to be touched by this senseless violence. May Mr. Jackson spend every minute of his sentence pondering his grievous actions and the toll they took on an innocent family. I would like to thank our partners in the NCPD and NYPD that stand shoulder to shoulder with ATF in the fight against violent criminals like Mr. Jackson. I would also like to thank the United States Attorney’s Office for their work in prosecuting the case.”
“The sentencing today of defendant Jermaine Jackson for murder and robbery is a clear example of how unjust criminal activity will be dealt with by law enforcement,” stated NCPD Commissioner Ryder. “Although no sentence is ever enough, hopefully this will bring some closure to the Lopez family. I would also like to credit all of the agencies and members involved during this investigation on a job well done.”
On December 16, 2016, Jackson and a coconspirator entered the Al Mini Market wearing a mask over the lower portion of his face and brandishing a semi-automatic handgun. Jackson held the store’s employees at gunpoint while the coconspirator attempted to steal money from the cash register. Lopez, a store employee, grabbed a bottle and resisted the robbery at which point Jackson shot him once. Jackson then attempted to leave the store but Lopez chased him. Jackson turned around and shot Lopez several more times, killing him. Jackson and his coconspirator fled, empty-handed.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Christopher Caffarone is in charge of the prosecution.
The Defendant:
JERMAINE JACKSON
Age: 25
Queens Village, New YorkE.D.N.Y. Docket No. 17-CR-140 (SJF)
Pittsburgh Felon Pleads Guilty to Drug and Gun ChargesRead the Press Release
PITTSBURGH- A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of possession of a firearm and ammunition by a convicted felon, possession with intent to distribute a quantity of heroin, possession of a firearm in furtherance of drug trafficking, United States Attorney Scott W. Brady announced today.
Isaiah Peeples, 27, pleaded guilty to three counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on March 29, 2017, Peeples illegally possessed a firearm and ammunition after previously having been convicted of a felony, and also illegally possessed with intent to distribute a quantity of heroin.
Judge Bissoon scheduled sentencing for April 12, 2019 at 2:15 p.m. The law provides for a total sentence of not less than 5 years and up to life in prison, a fine not to exceed $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Peeples. This case is being prosecuted under Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Pasadena Man Who Trafficked Narcotics by Airplane Luggage from LAX to Detroit Sentenced to 13½ Years in Federal PrisonRead the Press Release
LOS ANGELES – A Pasadena man who organized and directed a conspiracy to ship multi-kilogram quantities of heroin and cocaine in airplane luggage from Los Angeles to Detroit was sentenced today to 162 months in federal prison.
Kevin Blair, a.k.a. “Wood,” 47, who pleaded guilty in September to one count of conspiracy to possess with intent to distribute cocaine and heroin, was sentenced by United States District Judge Christina A. Snyder.
Blair obtained heroin and cocaine from his supply source in Los Angeles, arranged to have drug couriers from Detroit fly to Los Angeles, and then had them return to Detroit with the narcotics concealed in their luggage, according to court documents. Blair also directed a co-conspirator to book airline tickets with his credit cards and directed another co-conspirator to arrange for the couriers’ ground transportation and lodging.
A co-defendant, Delano Leflore, 39, a.k.a. “Bop Bop,” of Detroit, was sentenced in October to 10 years in federal prison for his role in the drug trafficking conspiracy after he pleaded guilty to the same narcotics conspiracy.
Kennsha Mason, 30, of Detroit, one of Blair’s drug couriers, was sentenced in October to 27 months in federal prison after she too pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine and heroin. According to court documents, Mason was hired to transport narcotics from Detroit to Los Angeles. During one trip to Los Angeles in early March 2017, Mason travelled to a townhouse on South Oakland Avenue in Pasadena, where Blair supplied the narcotics that were discovered by law enforcement in her suitcase.
Another defendant, Gabriela Maria de Leon, 29, of Woodland Hills, pleaded guilty to possession with intent to distribute heroin and served 16 months in custody.
The case against Blair and Leflore followed the seizure of approximately two kilograms of heroin and approximately one kilogram of cocaine at Los Angeles International Airport on March 7, 2017 after the narcotics were discovered in checked luggage. Mason was arrested at the scene.
The DEA Los Angeles International Airport Narcotics Task Force, an inter-agency task force based at LAX, is conducting this investigation. The Pasadena Police Department provided assistance.
The Task Force also is comprised of representatives from the Federal Bureau of Investigation, the Los Angeles Airport Police, the Los Angeles Police Department and the Los Angeles County Sheriff’s Department. The Task Force also works closely with the United States Customs and Border Protection and the Transportation Security Administration on this case.
The case against Blair was prosecuted by Assistant United States Attorney Alexander Wyman of the Major Frauds Section and Jehan Pernas of the General Crimes Section.
Omaha Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Anders W. York, 53, was sentenced today in federal court in Omaha for possessing child pornography. Senior United States District Court Judge Laurie Smith Camp sentenced York to 45 months’ imprisonment. There is no parole in the federal system. After his release from prison, York will begin a five-year term of supervised release and will be required to register as a sex offender.
In November 2017 the FBI Cyber Crimes Task Force received five CyberTips from the National Center for Missing and Exploited Children. The CyberTips came back to a user in Omaha, Nebraska. Each CyberTip reflected that the user had uploaded images of child pornography between November 7 and November 24, 2017.
A federal search warrant was executed at the residence on March 15, 208. York was interviewed and admitted to viewing images of child pornography. Twenty-two images of child pornography were found on his phone.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and the Douglas County Sheriff’s Department.
Ohio Man Convicted of Hate Crime in Attack Outside Cincinnati RestaurantRead the Press Release
Izmir Koch, 33, of Huber Heights, Ohio, was convicted in U.S. District Court today for assaulting a man because he believed the man was Jewish in violation of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, and of lying to the FBI about his role in the religiously motivated assault.
Assistant Attorney General Eric Dreiband for the Justice Department’s Civil Rights Division, Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Herb Stapleton, Acting Special Agent in Charge, FBI Cincinnati Division, announced the verdict, which was reached today by U.S. District Judge Susan J. Dlott after a bench trial that occurred between Nov. 13 to 15.
According to court documents and testimony, the assault occurred on Feb. 4, 2017, outside a Cincinnati restaurant, when Koch yelled out asking if anyone outside the restaurant was Jewish. The victim responded that he was Jewish and Koch then ran to the victim and punched him in the head. When the victim fell to the ground, Koch and others continued hitting and kicking him, breaking a bone in his face and bruising his ribs. A half-dozen of Koch’s friends joined in the assault. Before and during the assault, the defendant was heard shouting, “I want to kill all of the Jews” and “I want to stab the Jews.” The victim was not in fact Jewish.
After the incident occurred, Koch made a voluntary statement to the FBI, accompanied by his attorney. Koch falsely told the FBI he was not involved in the fight and he had not said anything disparaging about Jews.
“All people should be able to live their lives freely and without fear of violence or aggressive acts of intimidation,” said Assistant Attorney General Eric Dreiband. “The Department of Justice is committed to prosecuting anyone who harms someone because of their actual or perceived religion and lies to law enforcement to cover up the crime.”
“This is the first conviction under the federal Hate Crimes Prevention Act in the Southern District of Ohio,” said U.S. Attorney Glassman. “We will not permit hate-fueled violence to gain a toehold here. Nor will we countenance lying to FBI agents. Today’s convictions reflect our resolve.”
In October, the Justice Department launched a new comprehensive hate crimes website designed to provide a centralized portal for the Department’s hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other related organizations and individuals. More information on the website and an update on Justice Department hate crimes prosecutions can be found here.
This case was investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney Megan Gaffney and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
Office Manager, Bookkeeper Pleads Guilty to Bank FraudRead the Press Release
PROVIDENCE – A former office manager and bookkeeper for a used car dealership in Cranston today admitted the she defrauded her former employer by altering and misrepresenting information entered in financial records.
Appearing before U.S. District Court John J. McConnell, Jr., Michelle Saritelli, 45, of South Kingstown, admitted to the Court that from January 2014 to October 5, 2017, she engineered and executed a scheme to defraud the owners of Stamas Auto and Truck Center by pocketing dealership checks and substantial portions of checks cashed on a weekly basis to fund the dealership’s petty cash fund, and by writing checks to her domestic partner for auto repair services and parts sales not provided.
The government alleges that the loss to Stamas Auto is between $250,000 and $560,000.
According to court documents, on September 27, 2017, the owners of Stamas Auto were notified that their bank accounts had been frozen. An internal review of the accounts by the business owners determined that several check ledgers were missing, funds were unaccounted for, and that numerous checks had been forged and/or fraudulently cashed.
The majority of missing bank ledgers were located during a court-authorized search of Saritelli’s residence on June 7, 2018.
An investigation by the Cranston Police Department and the FBI determined that Saritelli deposited stolen funds in bank accounts controlled by her and her parents. The majority of cash was withdrawn from ATMs at banks located near Saritelli’s South Kingstown residence and at casinos in Newport, Lincoln, Foxwoods, and Mohegan Sun.
Saritelli’s guilty plea today to bank fraud is announced by United States Attorney Stephen G. Dambruch, Special Agent in Charge of the FBI Boston Division Harold H. Shaw, and Cranston Police Chief Colonel Michael J. Winquist.
Saritelli is scheduled to be sentenced on March 18, 2019.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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North Myrtle Beach Woman Pleads Guilty to Federal Fraud Charges for Check-Forging ConspiracyRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Holly Denise Sturkey, 42, of North Myrtle Beach, South Carolina, pled guilty in federal court to Conspiracy to Manufacture and Pass Forged Securities.
Evidence presented at the guilty plea hearing established that from May through October 2017, Sturkey was involved in a conspiracy to manufacture and pass forged checks of organizations.
This conspiracy was responsible for stealing mail from mailboxes at various residences in Horry County and other counties in an effort to locate genuine checks within the mail. Sturkey would then alter and/or forge various information on the checks, including names and signatures of payees and account holders, so that she could deposit those checks into a bank account to which she had access. She would then withdraw the funds from this account and keep the proceeds for herself.
Sturkey faces a maximum penalty of five years in federal prison. United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will sentence Sturkey after receiving and reviewing a presentence investigation report prepared by the United States Probation Office.
The case was investigated by agents of the U.S. Postal Inspection Service with the assistance of the Horry County Police Department and the North Myrtle Beach Police Department. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
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Niagara Falls Man Arrested on Multiple Charges, Including Possession of an Explosive DeviceRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Jeffrey Richards, 28, of Niagara Falls, NY, was arrested and charged by criminal complaint with possession with intent to distribute 100 grams or more of heroin; possession of firearms in furtherance of drug trafficking; maintaining a drug-involved premises; and making and possessing an unlawful destructive device. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life, and fine of up to $5,000,000.
Assistant U.S. Attorneys Timothy C. Lynch and Brendan T. Cullinane, who are handling the case, stated that according to the complaint, an investigation by the FBI’s Joint Terrorism Task Force revealed that defendant was a significant narcotics trafficker who also manufactured improvised explosive devices. Through the investigation, agents learned that Richards obtains heroin and other narcotics from suppliers which he redistributed in the Niagara Falls area.
On December 14, 2018, law enforcement officers executed a search warrant at the defendant’s residence on Packard Court in Niagara Falls. Officers recovered amounts of suspected heroin, marijuana, and cocaine, approximately 10 firearms, various rounds of ammunition, drug trafficking paraphernalia, and an improvised explosive device. Officers also recovered various items used in the manufacturing of explosive devices.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and is detained.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, and the Niagara County Sheriff's Department, under the direction of Sheriff James Voutour.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Nashville, Tennessee Man Pleads Guilty to Possession of Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Antwaun Anglin, age 39, of Nashville, Tennessee, entered a guilty plea to Possession Of Counterfeit Obligation Of The United States, in violation of Title 18, United States Code, Sections 474(a) and 2, punishable by not more than 25 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about September 13, 2018, in the Eastern District of Oklahoma, the Defendant, did knowingly have in his possession and custody, with intent to sell or otherwise use, approximately five hundred seventy-eight (578) falsely made and counterfeited twenty-dollar Federal Reserve Notes, Series 2013, Serial No. MK12783752B, Quadrant # 4, Face Plate 28, Back Plate 22, Federal Reserve Bank K11, made after the similitude of obligations issued under the authority of the United States.
The charges arose from an investigation by the Atoka Police Department, the Caney Police Department, and the United States Secret Service.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Clay Compton represented the United States.
Multiple New Bern Defendants Sentenced in Multi-Year Heroin and Marijuana Conspiracy InvestigationRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that over the course of the last week in federal court, before Chief United States District Judge Terrence W. Boyle, multiple defendants have been sentenced in a large-scale heroin and marijuana trafficking organization.
The investigation was part of OCDETF Operation 190, which was named in memory of New Bern Police Department Officer Alexander Thalmann. Officer Thalmann was shot and killed in the line of duty in March of 2014 by associates of the defendants in this case. An Organized Crime Drug Enforcement Task Force (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.
The defendants’ convictions and sentencings were the culmination of a multi-year investigation into a heroin trafficking ring operating in and around New Bern, North Carolina, and led primarily by two men: DAMIEN LAMONTE BROWN and CALVIN MARK WILSON. Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and members of the New Bern Police Department learned that BROWN, WILSON, and others had been involved in ordering heroin from New York City and arranging it to be brought down in multi-kilogram amounts over a period of several years. BROWN and WILSON then supplied various mid and lower-level dealers in and around New Bern with the heroin for sale.
As part of the investigation, law enforcement conducted over twenty controlled purchases of heroin from organization members between November 2016 and July 2017, along with traffic stops and other encounters in which they confirmed that members possessed drugs and guns. Based on that investigation, ATF then obtained authorization for a federal wiretap of cellular phones associated with WILSON and two co-defendants. As a result, agents intercepted calls and texts over a three-month period in late 2017 showing that WILSON was directing the supply and distribution of kilogram-levels of heroin from New York to New Bern, NC. Based on intercepted calls, agents were able to stop and arrest WILSON and two co-defendants traveling back from New York with 3lbs of marijuana and 7 bars of heroin cutting agent.
ATF made arrests of many of the defendants on October 24, 2017, along with searches of five residences associated with the organization. Through the life of the investigation, law enforcement has seized over a kilogram of heroin and twenty firearms.
The defendants include:
- DAMIEN LAMONTE BROWN, aka “Dame,” 36, of New Bern, NC. BROWN was convicted in August 2018 by a federal jury of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin, possession with intent to distribute one hundred (100) grams or more of heroin, and possession of a firearm by felon. BROWN was sentenced to 360 months’ imprisonment.
- DERRICK LAMONT DAVIS, aka “Gucci,” 35, of Kinston, NC. DAVIS was convicted of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin. DAVIS was sentenced to 48 months’ imprisonment.
- DWAYNE LEE STALLINGS, aka “Smiley,” 35, of Cove City, NC. STALLINGS was convicted of possession of a firearm by a felon and was sentenced to 108 months’ imprisonment.
- NASSAR TURE MACK, 37, of New Bern, NC. MACK was convicted of possession of a firearm by felon and was sentenced to 24 months’ imprisonment.
- MARIO CORRELLUS BARGNEARE, aka “Rio,” 39, of New Bern, NC. BARGNEARE was convicted of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin and discharging a firearm in furtherance of a drug trafficking crime. BARGNEARE was sentenced to 204 months’ imprisonment.
- DEREK JACQUAN WIGGINS, aka “DJ,” 38, of New Bern, NC. WIGGINS was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin, several counts of distributing heroin, and possession of a firearm by a felon. He was sentenced to 120 months’ imprisonment.
- ROY JAMES NOLON, aka “Henny,” 21, of New Bern, NC. NOLON was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and possession of a firearm in furtherance of a drug trafficking crime. He was sentenced to 96 months’ imprisonment.
- MICHAEL QUALEEK VELASQUEZ, aka “Moo Moo,” 23, of New Bern, NC. VELASQUEZ was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and possession with intent to distribute a quantity of heroin. He was sentenced to 96 months’ imprisonment.
- LAMAR HOSEA WIGGINS, aka “LB,” 39, of New Bern, NC. WIGGINS was convicted of conspiring to possess with the intent to distribute a quantity of heroin and possession of a firearm by a felon. He was sentenced to 96 months’ imprisonment.
- LASHAWNNA JAQUETTE MCCOTTER, aka “Flossy,” 47, of New Bern, NC. McCOTTER was convicted of conspiring to possess with the intent to distribute a quantity of heroin and possession with intent to distribute a quantity of marijuana. She was sentenced to 30 months’ imprisonment.
- LATREKA DENISE HARDESTY, aka “T,” 27, of New Bern, NC. HARDESTY was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin. She was sentenced to time served.
- ADRIENNE MICHELLE HALL, 35, of New Bern, NC. HALL was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin. She was sentenced to time served.
- CAROLINE LOUISE HUGHES, 28, of Alliance, NC. HUGHES was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin. She was sentenced to 5 years probation.
Three defendants are scheduled to be sentenced over the course of the next few months. They are:
- CALVIN MARK WILSON, aka “Bali,” 34, of New Bern, NC. WILSON was convicted of conspiracy to distribute and possess with the intent to distribute one thousand grams or more of heroin and a quantity of marijuana and possession with intent to distribute a quantity of marijuana. WILSON faces a sentence of not less than 20 years’ imprisonment.
- WILLIE FRANK JAMES AHERN, aka “White, White Bread, Dribs,” 39, of Bayboro, NC. AHERN was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and several instances of distributing quantities of heroin. AHERN faces up to life imprisonment.
- WALTER NAJEE GREEN, III, 21, of New Bern, NC. GREEN was convicted of distribution of a quantity of heroin and faces up to 30 years’ imprisonment.
The investigation also led to 8 individuals being charged by the state for drug offenses. Those charges remain pending.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), New Bern Police Department, Jacksonville Police Department, Craven County Sheriff’s Office, Pamlico County Sheriff’s Office, the North Carolina State Bureau of Investigation, Onslow County Sheriff’s Office, Sampson County Sheriff’s Office, Trent Woods Police Department, Carteret County Sheriff’s Office, Morehead City Police Department, Beaufort County Sheriff’s Office, and with the assistance of the Federal Bureau of Investigation (FBI) and Drug Enforcement Administration (DEA). Assistant United States Attorney Laura S. Howard prosecuted this case on behalf of the government.
Mid-State Psychologist Facing Federal Healthcare Fraud ChargesRead the Press Release
NASHVILLE, Tenn. – December 17, 2018 – Donald M. McCoy, 52, of Murfreesboro, Tennessee, was arrested Friday by federal and state agents and charged with two counts of healthcare fraud, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According to the criminal complaint, McCoy is a licensed psychologist by the State of Tennessee and is an authorized TennCare provider who provides individual psychotherapy and family psychotherapy services to patients—usually minors—in the care of the Department of Children’s Services (“DCS”). The complaint alleges that between January 2014 and December 7, 2018, McCoy billed for more hours of services than can physically be provided in any given day and received over $2.16 million from TennCare based on those claims.
The complaint alleges that an investigative analysis conducted by the Tennessee Bureau of Investigation determined that on multiple occasions, McCoy submitted claims for psychotherapy services that totaled more than 24 hours per day, some even exceeding 48 hours and 72 hours per day. The analysis also determined that McCoy billed for services purportedly rendered on more than 200 weekends and major federal holidays, including New Year’s Day, the Fourth of July, Thanksgiving and Christmas day, among others. The complaint further alleges numerous times McCoy billed for family psychotherapy sessions involving patients in DCS custody, which never occurred.
If convicted, McCoy faces up to 20 years in prison and up to a $250,000 fine on each count.
This case was investigated by the Tennessee Bureau of Investigation; the U.S. Postal Inspection Service; and the IRS Criminal Investigation. Assistant U.S. Attorneys Kathryn Booth and Sarah Bogni are prosecuting the case.
The charges are merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Miami-Area Woman Sentenced to over Six Years in Prison for Role in $4.65 Million Medicare Fraud SchemeRead the Press Release
A Miami, Florida-area woman was sentenced to 78 months in prison to be followed by three years of supervised release today for her role in a $4.65 million health care fraud scheme involving three home health agencies that purported to provide home health services to Medicare patients.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Margarita Palomino, 54, of Homestead, Florida, was sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida. Judge Martinez also ordered Palomino to pay $4,658,241.00 in restitution and to forfeit $186,650.50. Palomino pleaded guilty on Oct. 10, 2018 to one count of conspiracy to commit health care fraud and wire fraud.
Palomino worked at Sunshine Home Health Services Inc., Empire Home Health Agency Inc. and Mildred & Marce Home Health Care Services Inc., all in the Miami area. As part of her guilty plea, Palomino admitted that from approximately January 2010 through approximately January 2014, she accepted kickbacks in return for the referral of Medicare beneficiaries, many of whom did not need or qualify for home health services, to act as patients at the three agencies. Palomino—who was a physician in Cuba but never licensed in the United States—further admitted that she performed home health care nursing visits and prepared related medical records as if she were a licensed medical professional. She also admittedly changed claims coding to increase reimbursement by Medicare.
Palomino admitted that, as a result of false and fraudulent claims submitted as part of this conspiracy, Medicare made payments of at least $4.65 million.
Palomino was charged along with Norma Zayas, 29, of Miami, in an indictment returned on June 7, 2018. Zayas pleaded guilty and is currently awaiting sentencing.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Trial Attorney Emily Gurskis of the Fraud Section and Assistant U.S. Attorney Leslie Wright of the District of Massachusetts (previously a Fraud Section trial attorney) are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in 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. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Mexican Man Charged with Illegal Re-EntryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that BENITO ORBE-SANTANA, age 43, a native of Mexico, was charged Friday, December 14, 2018 in a one-count indictment with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to the indictment, ORBE-SANTANA was previously removed from the United States on July 9, 2008. He was later found in the Eastern District of Louisiana on December 10, 2018 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
If convicted, ORBE-SANTANA faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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Man Sentenced to 120 Months in Prison for Attempted Enticement of a MinorRead the Press Release
PENSACOLA, FLORIDA – Glenn Varrin, 56, of Syracuse, New York, was sentenced to 120 months in prison today for attempted enticement of a minor after pleading guilty on August 15. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In March 2018, an undercover investigator began chatting online to identify individuals interested in exploiting children. Varrin sent a message to the investigator, who was posing as a 14-year-old female. Over the next two months via e-mail and later by text message, Varrin discussed engaging in sexual intercourse with the investigator posing as the 14-year-old female. In May 2018, Varrin traveled to Fort Walton Beach for the purposes of engaging in sexual intercourse with an individual he believed was a 14-year-old child. Varrin arranged to meet the investigator posing as the 14-year-old female at a gas station, and he was arrested when he arrived there.
U.S. Attorney Canova said: “Protecting children from exploitation is a top priority of my office and the Department of Justice. I commend the hard work of our prosecutors and law enforcement professionals who protect our communities and bring child predators to justice.”
“The Okaloosa County Sheriff’s Office and HSI special agents, working together, were able to identify and arrest this predator who traveled to our local area from out of state in order to have sex with a female minor,” said HSI Tampa Special Agent in Charge James C. Spero. “This case is an example of the strong law enforcement partnerships HSI has in the Panhandle area and together, once again, we have stopped another criminal from sexually abusing a child.”
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Okaloosa County Sheriff’s Office, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Jeffrey M. Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Man Indicted for Interference with Flight CrewRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that RODNEY JAMES, age 47, a resident of Phoenix City, Alabama, was charged Friday, December 14, 2018 in a one-count indictment for interference with a flight crew, in violation of Title 49, United States Code, Section 46504.
According to the Indictment, on November 14, 2018, JAMES interfered with a flight crew, travelling from Fort Lauderdale, Florida to Los Angeles, California, by being disruptive, yelling loudly, refusing to sit down, aggressively pursuing a flight crew member across the cabin, and threatening the flight crew, all causing the aircraft to be diverted to New Orleans.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney G. Dall Kammer, Supervisor of the General Crimes Unit, is in charge of the prosecution.
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Man Convicted of Robbing Local WhataburgerRead the Press Release
CORPUS CHRISTI, Texas – A 22-year-old Corpus Christi man has entered a guilty plea to robbery and brandishing a firearm in furtherance of a crime of violence, announced U.S. Attorney Ryan K. Patrick.
On March 14, 2018, the Corpus Christi Police Department (CCPD) responded to an aggravated robbery at the Whataburger located in the 4100 block of South Staples. Upon their arrival, officers discovered that a male – later identified as Dveaunta Montez Hall, 22 - had entered the business and pointed an assault rifle employees and customers while demanded money from the register. He then fled the location on foot.
A short while later, responding officers located Hall, who still had the assault rifle in his possession, near the location. During the investigation, officers discovered Hall had stolen the assault rifle from a nearby apartment shortly before committing the robbery.
Senior U.S. District Judge John D. Rainey accepted Hall’s plea today and set sentencing for March 17, 2019. At that time, he faces up to 20 years imprisonment and a maximum $250,000 fine for the robbery and a minimum and mandatory seven years for brandishing a firearm during a crime of violence, which must be served consecutively to any other prison term imposed.
He has been and will remain in custody pending that hearing.
CCPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Attorney Lance Watt is prosecuting the case.
Man Convicted of Hate Crime in Attack Outside Cincinnati RestaurantRead the Press Release
CINCINNATI – Izmir Koch, 33, of Huber Heights, Ohio, was convicted in U.S. District Court today for assaulting a man because he believed the man was Jewish in violation of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, and of lying to the FBI about his role in the religiously motivated assault.
Assistant Attorney General Eric Dreiband for the Justice Department’s Civil Rights Division, Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Todd Wickerham, Special Agent in Charge, FBI Cincinnati Division, announced the verdict, which was reached today by U.S. District Judge Susan J. Dlott after a bench trial that occurred between Nov. 13 to 15.
According to court documents and testimony, the assault occurred on Feb. 4, 2017, outside a Cincinnati restaurant, when Koch yelled out asking if anyone outside the restaurant was Jewish. The victim responded that he was Jewish and Koch then ran to the victim and punched him in the head. When the victim fell to the ground, Koch and others continued hitting and kicking him, breaking a bone in his face and bruising his ribs. Approximately a half-dozen of Koch’s friends joined in the assault. Before and during the assault, the defendant and his associates were heard shouting, “I want to kill all of the Jews” and “I want to stab the Jews.”
After the incident occurred, Koch made a voluntary statement to the FBI, accompanied by his attorney. Koch falsely told the FBI he was not involved in the fight, the fight only consisted of two punches, and he had not said anything disparaging about Jews.
“This is the first conviction under the federal Hate Crimes Prevention Act in the Southern District of Ohio,” said U.S. Attorney Glassman. “We will not permit hate-fueled violence to gain a toehold here. Nor will we countenance lying to FBI agents. Today’s convictions reflect our resolve.”
In October, the Justice Department launched a new comprehensive hate crimes website designed to provide a centralized portal for the Department’s hate crimes resources for law enforcement, media, researchers, victims, advocacy groups and other related organizations and individuals. More information on the website and an update on Justice Department hate crimes prosecutions can be found here.
This case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Megan Gaffney and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
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Lexington Man Indicted for Defrauding National Dumpster Company Based in ColumbiaRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that William Tye Grisel, 38, of Lexington, South Carolina, was charged in a 153-count Indictment by a federal grand jury for Wire Fraud and Fraud Involving a Computer.
According to the Indictment, Grisel is a former employee of and consultant for Big Red Box, a national dumpster brokerage firm based in Columbia. Over an almost three-year period, he defrauded the company of approximately $1.05 million by charging for marketing calls he did not make.
Grisel faces a maximum penalty of 20 years in federal prison for each Wire Fraud charge and five years in prison for each Fraud Involving a Computer charge.
The United States Secret Service investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
The U.S. Attorney Lydon stated that all charges in the indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Leominster Woman Sentenced for Stealing Social Security and Veterans BenefitsRead the Press Release
BOSTON – A Leominster woman was sentenced on Friday, Dec. 14, 2018, in federal court in Worcester for stealing Social Security and Veterans Affairs benefits.
Joyce Progin, 71, was sentenced by U.S. District Court Judge Timothy S. Hillman to time served, three years of supervised release, and ordered to pay restitution of approximately $325,245. In August 2018, Progin pleaded guilty to two counts of theft of public funds. She was arrested and charged in January 2018.
In November 2009, Progin’s former father-in-law passed away. At the time of his death, the father-in-law was receiving monthly retirement benefits from Social Security and monthly benefits from the Department of Veterans Affairs. Neither agency was advised of his death and continued to deposit his benefit payments into a bank account he held jointly with Progin, who was his caregiver. Although she admitted knowing that she was not entitled to the money, from November 2009 through March 2017, Progin received approximately $55,267 in Social Security benefits, and from November 2009 through November 2017, she received approximately $269,978 in benefits from the Department of Veterans Affairs, in total, stealing over $300,000 in public funds.
United States Attorney Andrew E. Lelling; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Sean Smith, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Lancaster Resident Sentence to 10 Years in Federal Prison After Being Found in Possession of Firearms Stolen from National Guard ArmoryRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Brandon Shane Polston, age 33, of Lancaster, South Carolina, was sentenced in federal court after pleading guilty in July to being a felon in possession of firearms and to possession of machineguns and destructive device not registered to him in the National Firearms Registration and Transfer Record. United States District Judge J. Michelle Childs of Columbia sentenced Polston to the statutory maximum sentence of 120 months (10 years) imprisonment with 3 years of supervised release to follow.
Polston’s co-defendants—Austin Lee Ritter, age 23, and Kimberly Denise Cannon, age 40, both of Lancaster—were sentenced in late November after pleading guilty in June. Both pled guilty to the same charges as Polston. Ritter was sentenced to 87 months imprisonment with 3 years of supervised release to follow. Cannon was sentenced to 24 months imprisonment with 3 years of supervised release to follow.
Evidence presented in court hearings established that during the early morning hours of November 26, 2017, an officer with the Lancaster Police Department conducted a traffic stop of a vehicle driven by Cannon after observing her littering. Further investigation during the traffic stop revealed the following inside the vehicle: a FNH, model M249, 5.56mm machinegun; two (2) Colt, model M-16, 5.56mm machineguns; two (2) Beretta, model M9, 9mm pistols; a Colt, model M203, 40mm grenade launcher (“destructive device”); night vision goggles; and various military items stolen from the Lancaster National Guard Armory.
After the traffic stop, Polston and Ritter were located at a Lancaster motel and found in possession of a small quantity of methamphetamine. A review of surveillance video from the motel showed Polston, Ritter, and Cannon bringing the bags containing the firearms back and forth between the vehicle and the motel room. Searches of their cell phones revealed various photos and text messages relating to the firearms and sale of the firearms.
During the investigation, Polston admitted that on Thanksgiving Day, he jumped the fence of the Armory, where he found the building unsecured and no one present. The investigation has not uncovered any plan by any other person to assist Polston in the theft. Polston stole the firearms and other items and hid them in nearby woods.
Thereafter, Polston traded one 9mm handgun to a male in exchange for heroin, which he provided to a friend. Polston also sold two of the M-16s to two males in Lancaster in exchange for money, cocaine, and marijuana. Thereafter, Polston had Cannon drive him and Ritter back to the wooded area to retrieve the remaining firearms and other items. The group also traveled to the Rock Hill area, where Polston gave an M-16 to a female and received methamphetamine from her. The investigation revealed that while some of the stolen firearms were later recovered in possession of other felons, other firearms remain missing.
Polston and his co-defendants Ritter and Cannon are all prohibited under federal law from possessing firearms and ammunition based upon their prior state convictions. Polston has prior state convictions for breaking into autos (2 counts), malicious injury to person property over $2,000, but less than $10,000, assault and battery 1st degree, burglary 2nd degree (2 counts), receiving stolen goods over $2,000 but less than $10,000, and property offense 3rd or subsequent. Polston was released from the South Carolina Department of Corrections in February 2017.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Lancaster Police Department, and the South Carolina Law Enforcement Division (SLED). Assistant United States Attorney Stacey D. Haynes of the Columbia office prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Lancaster Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Quavis Jamar Rudisell, 29, of Lancaster, South Carolina, pled guilty in federal court to being a felon in possession of a firearm and ammunition.
Evidence presented in court established that during the early morning hours of September 6, 2018, deputies with the Lancaster County Sheriff’s Department responded to a residence on Providence Road after receiving a 911 call in regard to a theft of money. The residence advised that Rudisell had been a guest in the home, stolen approximately $1,300, and fled on a silver moped. Officers with the Lancaster Police Department located Rudisell on the moped and attempted to conduct a traffic stop. Rudisell jumped off the moped and fled into nearby woods, where he was later captured. Officers located the stolen money on Rudisell, along with a magazine loaded with rounds of 9mm ammunition. Rudisell admitted to throwing the firearm down. Officers did a search of the area and recovered a 9mm handgun with a large-capacity magazine loaded with 19 rounds of ammunition. He was arrested pursuant to a federal criminal complaint.
Rudisell is prohibited under federal law from possessing firearms and ammunition based upon a prior state conviction for breach of trust with fraudulent intent more than $2,000 but less than $10,000 (2016) and a prior federal conviction for conspiracy to possess with intent to distribute 5 kilograms or more of cocaine and 50 grams or more of crack cocaine (2011). Rudisell had been released from federal prison and was on federal supervised release at the time of the instant offense.
Rudisell faces a maximum of 10 years in federal prison, a fine of $250,000, and 3 years of supervised release on the felon in possession of a firearm and ammunition charge. He also faces a revocation of his federal supervised release.
Senior United States District Judge Joseph F. Anderson, Jr., of Columbia accepted the guilty plea and will impose sentence after he has received and reviewed the presentence report, which will be prepared by the United States Probation Office. Assistant United States Attorney Stacey D. Haynes of the Columbia office is prosecuting the case.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Lancaster County Sheriff’s Office, and the Lancaster Police Department. It is being prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Lakewood Man Charged in $10 Million Health Care Fraud Against Blue Cross Blue ShieldRead the Press Release
NEWARK, N.J. – A Lakewood, New Jersey, insurance producer was charged today with conspiring to defraud several Blue Cross Blue Shield health care insurance affiliates of more than $10 million, U.S. Attorney Craig Carpenito announced today.
Jonas Knopf, 63, of Lakewood, was charged by complaint with one count of conspiring to defraud three health care Blue Cross Blue Shield (BCBS) affiliates in Pennsylvania and the Washington, D.C., area. He is scheduled to appear today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to documents filed in this case and statements made in court:
From 2009 to 2017, Knopf was the chief executive officer of Madison Financial Services (MFS) and a licensed insurance producer – a person who is licensed to sell insurance products. MFS was the parent company of 11 sham companies created by Knopf and others solely for the purpose of marketing health insurance coverage to people who were not, in fact, his employees. These companies purported to be located and doing business in Pennsylvania and/or Virginia, and created the appearance of employment status for hundreds of individuals, largely Lakewood residents who were seeking health care coverage through BCBS benefit plans. The conspiracy began in Pennsylvania, and lasted until 2013, when an internal BCBS investigation uncovered irregularities in the information submitted by Knopf and others through his sham companies. Ultimately, the Pennsylvania Department of Insurance initiated an investigation and Knopf surrendered his Pennsylvania insurance producer’s license and ceased operation in the state. The conspiracy, however, continued in Virginia.
Knopf’s clients or purported employees paid him inflated insurance premiums as well as providing him with monies for payroll; Knopf, in turn, issued fake payroll checks, giving the false impression that they were actually employees being paid for services rendered. The conspiracy continued until January 2017. The conspiracy caused the health care insurers to pay out more than $10 million in fraudulent claims.
The count of conspiracy to commit health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent In Charge Gregory W. Ehrie; special agents of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, New York Region, under the direction of Special Agent in Charge Michael Mikulka; investigators of the U.S. Department of Labor, Employee Benefit Security Administration (EBSA), under the direction of Regional Director Darren Cohen, and the Ocean County Prosecutor's Office, under the direction of Bradley D. Bilhimer, with the investigation leading to today’s charge.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit and Assistant U.S. Attorney Tracey Agnew of the Violent Crime Unit.
The charge and allegations contained in the complaint, are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Michael Gilbert Esq., New York
Kentucky Man Sentenced to Prison for Bank RobberyRead the Press Release
HUNTINGTON, W.Va. – A Kentucky man who robbed over $32,000 from a bank in Wayne County was sentenced to 63 months in prison, announced United States Attorney Mike Stuart. Steve Ray Meeks, 62, of Louisa, Kentucky, previously pled guilty to bank robbery. U.S. Attorney Stuart commended the investigative efforts of the FBI, the Wayne County Sheriff’s Office, the Louisa, Kentucky, Police Department, the Kentucky State Police, and the West Virginia State Police.
“Meeks’ actions put so many lives in danger,” said United States Attorney Mike Stuart. “My thanks to all of the law enforcement officers who worked together to apprehend Meeks without further incident.”
Meeks admitted that on January 12, 2018, he robbed the Community Trust Bank in Fort Gay. The day before, Meeks admitted that he had approached the bank with his hood over his head and a ski mask covering his face and tried to get in after the bank had closed. During the morning staff meeting at the bank prior to opening, the bank employees discussed the individual they saw who had tried to get in the day prior. After that meeting, the same individual with the exact same clothes on tried to get in the bank again before it opened. Meeks admitted that he left and returned to the bank after it opened, when he could get in the unlocked door. Meeks further admitted that upon entering the bank, he brandished a weapon that appeared to be a handgun, requested that the tellers put all the money in a bag he brought with him, and threatened to shoot or kill them all.
Following the robbery, Meeks admitted that he drove into Kentucky with a Wayne County Sheriff’s deputy pursuing him, who then shortly after entering Kentucky, turned over the pursuit to a Louisa Police Department officer. Meeks admitted that during the pursuit, he threw large sums of cash from the robbery out the window. Law enforcement deployed stop strips to flatten his tires and Meeks was apprehended. The weapon from the robbery was later found in Fort Gay along the path where Meeks initially fled on foot, and it was discovered to be a BB gun that resembled an actual handgun, without an orange cap on the barrel or any other safety markings to indicate otherwise. Investigators and bank employees determined that the amount Meeks robbed was approximately $32,372.00.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor prosecuted the case.
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Judge Sends Johnstown Man to Prison for Distributing Heroin and FentanylRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa. has been sentenced in federal court to 14 months in prison, with credit being given for time served, and three years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Darryle D. Ford, 58.
According to information presented to the court, on July 12, 2017, Ford distributed a quantity of heroin and fentanyl.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Ford.
Johnstown Cocaine Dealer Sentenced to 7 Years in PrisonRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., has been sentenced in federal court to 84 months in prison and three years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Moses Lee Cunningham, 52.
According to information presented to the court, on June 7, 2017, Cunningham distributed a quantity of cocaine.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Cunningham.