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20 February 2019
Florida Man Charged with Money Laundering in $8.5 Million Account Takeover SchemeRead the Press Release
NEWARK, N.J. – A Florida man was arrested today on charges that he laundered funds related to an $8.5 million business account takeover scheme with ties to Eastern Europe, U.S. Attorney Craig Carpenito announced.
Igor Buzyukov, 51, is charged by criminal complaint with one count of money laundering. He is scheduled to appear tomorrow in Miami federal court.
According to the complaint:
Between February 2018 and July 2018, Buzyukov and others were allegedly part of an account takeover scheme aimed at several clients of Company-1, a financial technology company headquartered in San Jose, California. The scheme resulted in total losses exceeding $8.5 million.
The scheme generally involved an unidentified individual or individuals calling Company-1 and impersonating a representative of one of the victim companies. The individual would then request that an unauthorized bank account be added to the victims’ Company-1 accounts and be designated to receive payments from e-commerce customers.
The unauthorized bank accounts added to the victims’ Company-1 accounts were each controlled by Buzyukov under the name of a corporation registered to him in Florida. After monies were deposited to the unauthorized accounts, Buzyukov would transfer the funds to other accounts controlled by him. Buzyukov then wired the majority of the funds to several bank accounts held by various individuals in Russia, Turkey and Ukraine.
The money laundering charge carries a maximum penalty of 20 years in prison and a fine of $500,000, or twice the value of the property involved, whichever is greater.
U.S. Attorney Carpenito credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s Cybercrimes Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Felon from Mexico living in Benton pleads guilty to illegally re-entering U.S., possessing firearmRead the Press Release
SHREVEPORT, La. – Illegal alien and felon Shandy Salgado-Almendaris, 39, of Mexico, pleaded guilty today before Chief Judge S. Maurice Hicks Jr. to one count of re-entry of a removed alien and one count of felon in possession of a firearm, U.S. Attorney David C. Joseph announced.
According to the guilty plea, Bossier Parish Narcotics Task Force agents encountered Salgado-Almendaris on August 9, 2018 at his Benton, Louisiana, residence. Agents discovered a Rohm GmbH (RG Industries), Model: RG-14, .22-caliber revolver in the master bedroom area. Agents seized the firearm and arrested Salgado-Almendaris. He was later found to be an illegal alien who had been previously removed from the United States three times - September 30, 2010, November 10, 2010, and September 12, 2013 in Texas and Louisiana. The defendant is also a felon who was convicted of possession of cocaine in 2003.
Salgado-Almendaris faces 10 years in prison, three years of supervised release and a $250,000 fine for each count. Hicks set the sentencing date for May 30, 2019.
United States Immigrations and Customs Enforcement, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bossier Parish Narcotics Task Force investigated the case. Assistant U.S. Attorney Brian C. Flanagan is prosecuting the case.
Federal Jury Convicts Twin Falls Man, Who Shot at Police Officer in Shoshone, on Gun and Drug ChargesRead the Press Release
BOISE – U.S. Attorney Bart M. Davis announced today that a federal jury convicted Jesus Javier Malagon, 31, of Twin Falls, of unlawfully possessing firearms as a felon, possessing marijuana with the intent to distribute, and using and discharging a firearm during and in relation to the drug trafficking crime. Malagon was indicted by a federal grand jury on February 14, 2018. The trial began on Monday, February 11, 2019, and concluded on Friday evening when the jury returned their verdicts.
Malagon’s case stemmed from a traffic stop on January 30, 2018, in Shoshone, Idaho. Malagon fled from the traffic stop and a high-speed pursuit with police ensued. Malagon eventually crashed his vehicle. When a police officer approached Malagon after the crash, Malagon shot a 9 millimeter handgun at the police officer. The officer immediately returned fire, striking Malagon multiple times. Malagon suffered non-life threatening injuries from the shooting. A subsequent search of Malagon’s vehicle yielded the 9 millimeter handgun, an additional .38 caliber revolver, multiple pounds of marijuana, and other items showing that Malagon was distributing marijuana. Malagon was a felon and therefore prohibited from possessing firearms. His prior felony conviction was for manufacturing marijuana.
Sentencing is scheduled for May 9, 2019, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise. The crime of unlawful possession of firearms by a felon is punishable by up to ten years in prison and three years of supervised release. The crime of possession of marijuana with intent to distribute, as enhanced by Malagon’s prior marijuana manufacturing conviction, is punishable by up to ten years in prison and at least four years of supervised release. The crime of using and discharging a firearm during and in relation to the drug trafficking crime is punishable by a mandatory minimum of ten years, and up to life in prison, which must be served consecutively to all other sentences, and up to five years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Shoshone City Police Department, Gooding County Sheriff’s Office, and the Critical Incident Task Force, which included Idaho State Police, Twin Falls Sheriff’s Office, and the Twin Falls Police Department.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. 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.
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Federal Judge Sentences Former Berkeley County School District Chief Financial Officer to More Than Five Years for Embezzlement, Money Laundering, and Public CorruptionRead the Press Release
CHARLESTON, S.C. – Today, U.S. District Judge David C. Norton sentenced the former Chief Financial Officer (CFO) of the Berkeley County School District, Brantley Denmark Thomas, III, to 63 months in prison on charges of embezzlement, money laundering, and public corruption, announced the U.S. Attorney’s Office for the Western District of North Carolina. Judge Norton also ordered Thomas, 61, of Charleston, South Carolina, to serve three years under court supervision after he is released from prison, and to pay a total of $1,232,106.08 as restitution to Berkeley County School District (BCSD).
According to filed court documents and today’s sentencing hearing, from at least 2010 to December 2016, Thomas served as CFO of BCSD. As the School District’s CFO, Thomas was responsible for, among other things, reviewing invoices and authorizing payments to BCSD vendors. Court records show that, during the relevant time period, Thomas executed an embezzlement scheme by which he, among other things, intentionally overpaid certain BCSD vendors. When those vendors issued refund checks resulting from the overpayments, Thomas converted the checks issued to School District for his own use. Court records also show that, at times, Thomas deposited the refund checks directly into a personal bank account. At other times, Thomas converted the refund checks into cashier’s checks, which he then deposited into a personal bank account. Over the course of at least sixteen years, Thomas also used other methods to embezzle from BCSD, and stole at least $1.2 million of School District funds. Thomas used the stolen money on personal expenditures, including to pay for personal travel, jewelry and private club memberships.
According to court records and plea related documents, Thomas also admitted to taking at least $32,000 in bribes and kickbacks from an insurance broker in exchange for Thomas’ help in securing millions of dollars in BCSD’s insurance business.
In imposing the sentence, Judge Norton highlighted the serious nature of Thomas’ crimes, and noted its negative impact on the students of BCSD, the need to protect the public from Thomas, and the need to deter Thomas and others from committing such crimes in the future. Judge Norton also commented upon Thomas’ apparent “OPM Addiction,” – referencing Thomas’ repeated thefts of “Other people’s money.”
In January 2018, Thomas pleaded guilty to a total of twenty federal charges involving embezzlement, money laundering and public corruption. Thomas is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons, upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was conducted by the FBI and the South Carolina Law Enforcement Division. In making today’s announcement, the U.S. Attorney’s Office thanked the South Carolina Attorney General’s Office for its assistance.
The prosecution was handled by Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office for the Western District of North Carolina in Charlotte upon recusal of the U.S. Attorney’s Office for the District of South Carolina.
Fayette County Woman Charged with Illegally Receiving Social Security BenefitsRead the Press Release
PITTSBURGH, PA – A Fayette County resident has been indicted by a federal grand jury in Pittsburgh on a charge of theft of government property, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on Feb. 19, named Mika Lint aka Mika Baluch, 40, of Perryopolis, Pennsylvania.
According to the Indictment, from September 24, 2014 through July 27, 2016, Lint received $40,517 in Old Age, Survivor’s Disability Insurance benefits from the United States Social Security Administration, to which she knew she was not entitled.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Social Security Administration, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Euclid woman sentenced to nine years in prison for a scheme in which she fraudulently enrolled students in community colleges to defraud the Department of Education out of $1.8 millionRead the Press Release
A Euclid woman was sentenced to more than nine years in prison for a scheme in which she fraudulently enrolled students into Ohio community colleges to defraud the U.S. Department of Education out of $1.8 million.
Basheera Perry, 45, was sentenced to 114 months in prison and ordered to pay nearly $1.9 million in restitution. She previously pleaded guilty to numerous charges, including conspiracy, wire and mail fraud and aggravated identity theft.
"These programs were designed to help make college more affordable to people who want an education, but this defendant used them to enrich herself," U.S. Attorney Justin Herdman said. "She was a one-stop shop for fraud."
According to court documents:
Perry conspired with others between 2009 and 2017 to defraud the U.S. Department of Education. Perry would use the fraudulent students’ name, date of birth and social security to enroll them in community colleges, including Lakeland Community College, Lorain County Community College, Owens Community College and others.
She then applied for financial aid on behalf of the students, which came in the form of loans, Pell and other grants. Many of the “students” participated in the scheme for money and did not have any intention of going to school or using the financial aid for school-related purposes. Also, many did not have a high school diploma or GED, making them ineligible to receive the financial aid.
Perry, her recruiters and the fraudulent students split the proceeds of the financial aid. The Department of Education sent the money to the colleges, which in turn would send the excess financial aid to the “students” via check or debit cards to addresses controlled by Perry.
Perry charged the students fees to complete their academic coursework -- $1,000 for two courses, $1,500 for three courses and $2,000 for four courses. She also charged $500 to make counterfeit GED certificates or high school diploma transcripts. She also created other false documents, such as death certificates, medical records and police reports, for use in academic appeals if the “students” received notification of lack of satisfactory academic progress needed to receive financial aid.
She also participated Section 8 housing fraud between 2012 and 2017.
This case was investigated by the Social Security Administration -- Office of Inspector General, U.S. Department of Education -- Office of Inspector General, Postal Inspection Service and Department of Housing and Urban Development – Office of Inspector General. It was prosecuted by Assistant U.S. Attorneys Robert Kern and Danielle Angeli.
Essex County, New Jersey Woman Sentenced to Two Years in Prison for Illegal Food Stamps SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman was sentenced today to 24 months in prison for her role in a food stamps fraud scheme, U.S. Attorney Craig Carpenito announced.
Maria Teresa Venegas of Newark previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging her with one count of Supplemental Nutrition Assistance Program (SNAP) benefit fraud. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Venegas was the listed owner of Jenny’s Deli, a small grocery store in Newark. From March 2015 to March 2018, her father, Manuel Venegas, was an employee of Jenny’s Deli.
Jenny’s Deli was authorized to accept benefits provided by SNAP, formerly known as the Food Stamp Program. The program is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for SNAP benefits but may not exchange SNAP benefits for cash. According to the charges against them, Maria Teresa Venegas and Manuel Venegas exchanged more than $885,000 in SNAP benefits for cash between 2011 and 2018.
Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, to use to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
In addition to the high volume of SNAP benefits redemptions for Jenny’s Deli, indicating fraud, law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of an undercover law enforcement agent who engaged in approximately 20 “purchases” at Jenny’s Deli where Manuel Venegas, Maria Teresa Venegas, or another Jenny’s Deli employee acting at their direction exchanged money for SNAP benefits.
In addition to the prison term, Judge Vazquez sentenced Maria Teresa Venegas to two years of supervised release and ordered restitution of $888,487.
Manuel Venegas pleaded guilty on Oct. 30, 2018, to the same charge and is scheduled to be sentenced March 6, 2019.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
El Reno Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Homer Lee Basquez, age 38, of El Reno, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that in or about November, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate and foreign commerce.
The charges arose from an investigation by the Okmulgee County Sheriff’s Office and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
East Dorset Man Charged with Second Federal Child Pornography CrimeRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Walter Read, 76, of East Dorset, Vermont, was indicted on February 14, 2019 by a Burlington grand jury with one count of possession of child pornography and one count of access with intent to view child pornography. On February 19, 2019, Read was arrested and arraigned in U.S. District Court in Burlington before The Honorable John M. Conroy. At arraignment, Read pleaded not guilty to both charges. Read is next scheduled to appear in federal court on February 22 for a hearing on the government’s motion for his pretrial detention.
According to Court records, Read sustained a previous conviction in federal court for possession of child pornography. For that conviction, The Honorable William K. Sessions III sentenced him in 2012 to 37 months in prison to be followed by five years of supervised release. Read is accused of committing the instant child pornography offense – involving alleged downloading of images of child exploitation – while serving his term of federal supervised release.
U.S. Attorney Christina E. Nolan is handling the prosecution of Read. The lead federal investigator is a Homeland Security Investigations Special Agent. Assistant Federal Public Defender Steven Barth represents Read.
U.S. Attorney Nolan emphasized that the defendant is presumed innocent until and unless proven guilty. If convicted, Read faces a ten-year mandatory minimum sentence for each count. The advisory United States Sentencing Guidelines will also inform the Court at sentencing.
U.S. Attorney Nolan commended the efforts of the Vermont Internet Crimes Against Children Task Force, Homeland Security Investigations, and the Manchester, Vermont Police Department.
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney=s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dupree Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Dupree, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on February 20, 2019, by U.S. District Court Judge Roberto A. Lange.
David Little Wounded, age 36, was sentenced to 40 months in federal prison, followed by 4 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Little Wounded was indicted by a federal grand jury on August 14, 2018. He pled guilty on November 27, 2018.
The conviction stemmed from Little Wounded personally distributing between 200 and 350 grams of methamphetamine in South Dakota, beginning in April of 2016 and continuing through January of 2018.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Little Wounded was immediately turned over to the custody of the U.S. Marshals Service.
Corpus Christi, Texas Man Pleads Guilty to Conspiracy to Commit Wire FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JESSE MARCUS ESTES, age 44, pleaded guilty today to one count of conspiracy to commit wire fraud before U.S. District Judge Lance M. Africk.
ESTES faces a term of imprisonment of up to twenty (20) years imprisonment, a maximum $250,000.00 fine, and up to three (3) years of supervised release. Judge Africk scheduled sentencing for May 22, 2019.
According to court documents, ESTES conspired to commit wire fraud while employed by Texas Steam & Instrumentation Company (Texas Steam), a corporation related to Louisiana Steam Equipment Company, a Louisiana company located in New Orleans. As Executive Vice President, ESTES conspired with two Texas companies to defraud Texas Steam through a scheme to have Texas Steam or Louisiana Steam pay false invoices generated by the two Texas companies. The Texas companies then kicked back funds to ESTES by paying for fraudulent invoices from Industrial Sales, a company operated by ESTES. ESTES also used another company he owned and operated, Tru-Line Builders, to pass fraudulent invoices through Texas Steam. The scheme spanned from 2007 until 2014 and the defendant stole approximately $374,626 from Louisiana Steam and related subsidiary companies through a fraudulent “pay to play” scheme.
U.S. Attorney Strasser thanked the Federal Bureau of Investigation for its investigation in this matter. Assistant United States Attorneys Patrice Harris Sullivan and Duane A. Evans are in charge of the prosecution.
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Cleveland man sentenced for drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – Dorion D. McMullen, of Cleveland, Ohio, was sentenced today to 30 months incarceration for a drug distribution charge, United States Attorney Bill Powell announced.
McMullen, also known as “Caesar,” age 28, pled guilty to one count of “Distribution of Cocaine Base” in October 2018. McMullen admitted to selling cocaine in Ohio County in December 2017.
Assistant U.S. Attorney Steven L. Vogrin prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Calumet City Man Pleads Guilty to Firearms ChargesRead the Press Release
ROCKFORD — A Calumet City man pleaded guilty to firearms charges today before U.S. District Judge Frederick J. Kapala in Rockford.
BRUCE WALKER, 24, pleaded guilty to one count of conspiracy to commit an offense against the United States by stealing a firearm from a licensed firearms dealer, and one count of possessing a stolen firearm.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. The Manteno, Tinley Park, Chicago, and Loves Park Police Departments assisted in the investigation. The government is represented by Assistant U.S. Attorney Talia Bucci.
According to the written plea agreement, in the early hours of April 18, 2017, Walker and two other individuals obtained a stolen vehicle from Cook County and drove it to a federally-licensed firearms dealer in Manteno. The three individuals then used a hammer to shatter one of the dealer's glass exterior doors and entered the premises. After entering, they attempted to break into a firearms safe inside the office, but were not successful. On the way out, one of the individuals stole a rifle and a 30-round magazine hidden inside an office. Walker and the other two individuals also stole boxes of firearm ammunition before fleeing the premises, and returned to Cook County with the rifle, 30-round magazine, and ammunition. About three hours later, the three individuals used the same stolen vehicle to drive to a federally-licensed firearms dealer in Tinley Park, where Walker and another individual attempted to shatter the front glass door and a front window. When they were unable to gain entry to the business, they fled to the stolen vehicle where their getaway driver was waiting.
Walker faces a maximum sentence of five years’ imprisonment on the conspiracy charge, and a maximum of ten years’ imprisonment for possessing a stolen firearm. In addition, Walker faces a period of supervised release of up to three years following imprisonment, and a fine of up to $250,000 on each charge. The sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Sentencing is set for May 30, 2019, at 10:00 a.m.
KELVIN CULPS, also known as “Forty,” 22, of Dolton, was also indicted in the case and charged with conspiracy to commit an offense against the United States by stealing a firearm from a licensed firearms dealer, possessing a stolen firearm, and illegally possessing a firearm as a convicted felon. Culps is currently in custody pending trial. The public is reminded that an indictment contains only charges and is not evidence of guilt. Culps is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Buffalo Man Indicted in Connection with Violent Home Invasion of an Elderly Tonawanda CoupleRead 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 an indictment charging Todd Laraba, 41, of Buffalo, NY, with Hobbs Act robbery and conspiracy, and marijuana conspiracy. The charges carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that according to the indictment and a previously filed complaint, on September 28, 2017, shortly before 9:00 p.m., two men entered the residence at 540 Harrison Avenue in Buffalo, NY, and went to the family room where an elderly couple (victims) was watching television. The complaint states that the men were wearing black hooded sweat shirts, black pants, black gloves and skeleton masks, and one of the men had a husky or larger build. One of the men stated to the victims, "This isn't going to hurt, or take long. You won't get hurt, just relax." The men zip tied the victims’ hands and ankles with black zip ties and placed duct tape across the victims’ mouth and eyes. One of the men stayed with the victims while the other went to the attic of the residence. After approximately ten minutes the victims heard the rear door close. At this time they removed the duct tape from their eyes and mouth. One of the victims observed one of the men fleeing while carrying what appeared to be a lockbox.
The Town of Tonawanda Police Department responded and while processing the scene, officers recovered four black zip ties, four pieces of glossy duct tape, and other items.
Subsequent DNA testing determined that the major DNA profile obtained from the zip ties obtained from the ankles and wrists of one of the victims matched the DNA of Laraba.
In addition, between April and November 2017, the defendant conspired with others to possess and distribute marijuana.“I applaud the dogged efforts of investigators from the Tonawanda Police and the Erie County Sheriff’s Departments, who, along with the federal partners at HSI and the FBI, never gave up on identifying and tracking down the person responsible for terrorizing these elderly victims in the serenity of their own home,” stated U.S. Attorney Kennedy. “The arrest of this defendant should send a strong message to anyone thinking about preying on those most vulnerable—you will be discovered; you will be apprehended; and you will be brought to justice.”
The indictment is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Town of Tonawanda Police Department, under the direction of Jerome C. Uschold, III; U.S. Department of Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
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.
Benton man pleads guilty to methamphetamine, firearms chargesRead the Press Release
SHREVEPORT, La. – Eric Charles Means, 33, of Benton, Louisiana, pleaded guilty yesterday before U.S. District Chief Judge S. Maurice Hicks Jr. to possession with intent to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking crime, U.S. Attorney David C. Joseph announced.
According to the guilty plea, law enforcement officers with the DEA encountered Means on January 24, 2018 in a vehicle in the parking lot of a hotel on Industrial Drive in Bossier City, Louisiana. Inside the vehicle were plastic baggies containing 12.6 grams of methamphetamine and two firearms in a duffel bag on the front passenger seat. Means admitted to distributing methamphetamine and that he possessed the firearms for his protection while distributing the drugs. The two firearms confiscated from the duffel bag were a Smith & Wesson .357-caliber pistol and a Glock .45-caliber pistol, along with ammunition.
Means faces up to 40 years in prison for methamphetamine distribution and at least five years in prison for firearms possession. He also faces five years of supervised release and a $5 million fine. The court set the sentencing date for May 23, 2019.
The DEA and ATF conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan is prosecuting the case.
Bay Area Contractors Convicted in Scheme to Rig Bids for Department of Energy Building ContractRead the Press Release
SAN FRANCISCO - Clifton Burch and Peter McKean were convicted by a federal jury today of conspiring to defraud the United States in connection and conspiracy to commit mail and wire fraud all in connection with a federal construction contract, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Department of Energy Inspector General Teri L. Donaldson. The guilty verdicts follow a two-week trial before the Honorable Charles R. Breyer, U.S. District Judge.
The jury found that Burch, 50, of San Lorenzo, and McKean, 50, of San Mateo, conspired with Derf Butler to submit fraudulent bids to construct a building at Lawrence Berkeley National Laboratory (LBNL).
The investigation arose out of the investigation of Senator Leland Yee, Raymond “Shrimp Boy” Chow, and others. In the course of that investigation, Derf Butler was overheard discussing a bid-rigging opportunity. Butler stated that he had contractors who would “play ball” and help with a scheme to commit bid-rigging. Butler’s comments led to an undercover investigation of bid-rigging in the Bay Area. Building contracts at LBNL are paid for and overseen by the U.S. Department Energy (DOE). Contractors seeking construction work with LBNL and the DOE are legally required to obtain work through a competitive bidding process. In this case, Burch and McKean agreed with Butler to submit, or participate in the submission of, fraudulent and non-competitive bids to perform the renovation of LBNL Building 84. Specifically, Butler agreed to take steps to ensure that a particular “developer” – in reality, an undercover agent – won the contract by ensuring the lowest bid on the renovation project was provided by the developer. Butler helped to orchestrate the submission of bids by Burch and McKean in amounts dictated by Butler and the developer. The evidence at trial showed that Burch and McKean understood the bids were not genuine bids and were intended to be higher than the bid submitted to the DOE by the developer. Burch and McKean expected to get payment and work after the developer secured the contract.
Butler met with the developer in July of 2013, at which time Butler agreed to locate contractors to submit bids for the DOE contract in amounts higher than the contractor’s bid. On July 30, 2013, Butler met with Burch and McKean, each of whom agreed to submit a separate bid that would be higher than $5.7 million, the amount of the bid that would be submitted by the developer.
Butler also was given additional payments after Burch and McKean submitted the fraudulent bids. Specifically, on August 26, 2013, Burch mailed a bid for the contract to the LBNL in the amount of $7,125,000 and on October 3, 2013, McKean emailed a bid in the amount of $6,300,000. Burch and McKean both were told they would be given work as a sub-contractor and the construction manager on the project after the developer was awarded the bid.
A federal grand jury handed down a superseding indictment on November 8, 2018. Burch and McKean both were charged with one count of conspiracy to defraud the Unite States, in violation of 18 U.S.C. § 371, and one count of conspiracy to commit mail and wire fraud, in violation of 18 U.S. C. § 1349. Pursuant to today’s verdict, the defendants were convicted on all counts.
Butler pleaded guilty to his role in the scheme on October 17, 2018. Judge Breyer scheduled Butler’s sentencing hearing for March 27, 2019.
Judge Breyer scheduled the defendants’ sentencing hearing for June 19, 2019. The maximum statutory penalty for conspiring to defraud the United States is five years in prison and a $250,000 fine. The maximum statutory penalty for the conspiracy to commit mail and wire fraud count is 20 years in prison and a $250,000 fine. Further, additional periods of supervised release, fines, and restitution also may be imposed, however, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Cynthia Frey and William Frentzen are prosecuting the case with the assistance of Helen Yee, Rosario Calderon, Bridget Kilkenny, and Danielle Allison. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the DOE Office of the Inspector General.
Another Pittsburgh Man Pleads Guilty to Drug Charge in Operation Gang Green Investigation Led by FBI and DEARead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, pleaded guilty in federal court to a charge of conspiracy to distribute a quantity of cocaine, United States Attorney Scott W. Brady announced today.
Lawrence Morrison, 36, pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation, dubbed Operation Gang Green, revealed that from in and around November 2017 through in and around June 2018, Lawrence Morrison and his co-conspirators possessed with intent to distribute and distributed quantities of cocaine.
Judge Schwab scheduled sentencing for June 19, 2019, at 9 a.m. The law provides for a total sentence of 30 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorneys Tonya Sulia Goodman and Rachael Dizard are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation, which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, that led to the prosecution of Morrison.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
19 February 2019
Warner Woman Pleads Guilty to Union TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Christy Little Coppin, age 41, of Warner, Oklahoma, entered a guilty plea to Theft Within Special Maritime And Territorial, in violation of Title 18, United States Code, Section 661, punishable by not more than 5 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that from in or about May 2015 to in or about July 2017, in the Eastern District of Oklahoma, and within the special maritime and territorial jurisdiction of the United States, that is the Office of the American Federation of Government Employees Local 2250 in the Veterans Administration Hospital, the defendant did take and carry away, with intent to steal and purloin, personal property of the Office of the American Federation of Government Employees Local 2250, with a value exceeding $1,000.00.
The charges arose from an investigation by the United States Department of Labor.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Sarah McAmis represented the United States.
Upshur County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Cameron Dixon, of Buckhannon, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Dixon, age 26, pled guilty to one count of “Possession of a Stolen Firearm.” Dixon admitted to having a stolen .45 caliber pistol in September 2017 in Harrison County.
Dixon faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
United States Joins False Claims Act Lawsuit Against Arriva Medical, LLC and Alere Inc.Read the Press Release
NASHVILLE, Tenn. – February 19, 2019 - The United States has intervened in a False Claims Act case alleging that Arriva Medical, LLC (Arriva) and its parent Alere Inc. (Alere) submitted or caused false claims to the Medicare program for medically unnecessary glucometers and paid kickbacks to Medicare beneficiaries in the form of free glucometers and copayment waivers, the Justice Department announced today. Additionally, the government has informed the court that it is adding Ted Albin, a reimbursement consultant for Arriva, as an additional defendant in the action.
Arriva is a mail-order diabetic testing supply company based in Coral Springs, Florida, which, at one point, had operations in Antioch, Tennessee. Alere is a large medical device company based in Waltham, Massachusetts, which acquired Arriva in 2011. Both Arriva and Alere were acquired by Abbott Laboratories in September 2017, after the alleged conduct occurred. In October 2016, the Centers for Medicare & Medicaid Services (CMS) revoked Arriva’s billing number for billing Medicare for durable medical equipment that was shipped more than fourteen days after a beneficiary’s death. Arriva subsequently stopped operating in December 2017.
The False Claims Act lawsuit alleges, among other things, that Arriva, with the oversight and approval of Alere, offered “free upgrades” of glucometers to Medicare beneficiaries. Because Arriva required all new customers to receive a new meter, regardless of whether they already had a functioning meter, Arriva allegedly routinely submitted false claims to Medicare for medically unnecessary meters. Arriva also allegedly made no meaningful effort to collect copayments from beneficiaries for the meters or diabetic testing supplies subsequently purchased from Arriva for use in connection with the meters. The waiver of patient copays or provision of other benefits to induce patients to purchase a company’s items or services is prohibited by the Anti-Kickback Statute.
“When medical equipment companies scheme to enrich themselves by unlawfully increasing the sales volume of durable medical equipment, they place our federal health care programs in jeopardy,” said U.S. Attorney Cochran. “The restrictions imposed by federal statutes exist to prevent improper practices, including providing unnecessary medical equipment and billing Medicare for it. We will continue to enforce the laws that protect the integrity of federal health care programs.”
“We will seek to hold accountable health care providers that attempt to profit by providing illegal inducements and by billing for unnecessary items,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will continue to take appropriate legal measures to protect Medicare funds and to ensure a fiscally sound program that can serve all of our senior citizens.”
“Medicare rules bar payment for medically unnecessary services and supplies,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General. “Such schemes only benefit suppliers billing for products that patients neither want nor need.”
The lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to file suit on behalf of the United States for false claims and to receive a share of any recovery. The act permits the United States to intervene and take over responsibility for litigating these cases, as it has done here in part. A defendant who violates the act is subject to three times the government’s losses, plus applicable penalties.
This case is being handled by the Justice Department’s Civil Division and the United States Attorney’s Office for the Middle District of Tennessee, with assistance from the Office of Inspector General of the Department of Health and Human Services. The case is captioned United States ex rel. Goodman v. Arriva Medical LLC; Alere, Inc., Case No. 3:13-cv-00760 (M.D. Tenn.).
The claims in which the United States has intervened are allegations only, and there has been no determination of liability.
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United States Joins False Claims Act Lawsuit Against Arriva Medical LLC and Alere Inc.Read the Press Release
The United States has intervened in a False Claims Act case alleging that Arriva Medical LLC (Arriva) and its parent Alere Inc. (Alere) submitted or caused false claims to the Medicare program for medically unnecessary glucometers and paid kickbacks to Medicare beneficiaries in the form of free glucometers and copayment waivers, the Justice Department announced today. Additionally, the government has informed the court that it is adding Ted Albin, a reimbursement consultant for Arriva, as an additional defendant in the action.
Arriva is a mail-order diabetic testing supply company based in Coral Springs, Florida, which, at one point, had operations in Antioch, Tennessee. Alere is a large medical device company based in Waltham, Massachusetts, which acquired Arriva in 2011. Both Arriva and Alere were acquired by Abbott Laboratories in September 2017, after the alleged conduct occurred. In October 2016, the Centers for Medicare & Medicaid Services (CMS) revoked Arriva’s billing number for billing Medicare for durable medical equipment that was shipped more than fourteen days after a beneficiary’s death. Arriva subsequently stopped operating in December 2017.
The False Claims Act lawsuit alleges, among other things, that Arriva, with the oversight and approval of Alere, offered “free upgrades” of glucometers to Medicare beneficiaries. Because Arriva required all new customers to receive a new meter, regardless of whether they already had a functioning meter, Arriva allegedly routinely submitted false claims to Medicare for medically unnecessary meters. Arriva also allegedly made no meaningful effort to collect copayments from beneficiaries for the meters or diabetic testing supplies subsequently purchased from Arriva for use in connection with the meters. The waiver of patient copays or provision of other benefits to induce patients to purchase a company’s items or services is prohibited by the Anti-Kickback Statute.
“We will seek to hold accountable health care providers that attempt to profit by providing illegal inducements and by billing for unnecessary items,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will continue to take appropriate legal measures to protect Medicare funds and to ensure a fiscally sound program that can serve all of our senior citizens.”
“When medical equipment companies scheme to enrich themselves by unlawfully increasing the sales volume of durable medical equipment, they place our federal health care programs in jeopardy,” said U.S. Attorney Cochran. “The restrictions imposed by federal statutes exist to prevent improper practices, including providing unnecessary medical equipment and billing Medicare for it. We will continue to enforce the laws that protect the integrity of federal health care programs.”
“Medicare rules bar payment for medically unnecessary services and supplies,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General. “Such schemes only benefit suppliers billing for products that patients neither want nor need.”
The lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to file suit on behalf of the United States for false claims and to receive a share of any recovery. The act permits the United States to intervene and take over responsibility for litigating these cases, as it has done here in part. A defendant who violates the act is subject to three times the government’s losses, plus applicable penalties.
This case is being handled by the Justice Department’s Civil Division and the United States Attorney’s Office for the Middle District of Tennessee, with assistance from the Office of Inspector General of the Department of Health and Human Services. The case is captioned United States ex rel. Goodman v. Arriva Medical LLC; Alere, Inc., Case No. 3:13-cv-00760 (M.D. Tenn.).
The claims in which the United States has intervened are allegations only, and there has been no determination of liability.
UC Santa Cruz Student Indicted for Selling Drugs Through Software ApplicationRead the Press Release
SAN JOSE - A federal grand jury in San Jose indicted Collin Riley Howard, charging him with distribution and possession with intent to distribute cocaine and methamphetamine, announced United States Attorney David L. Anderson and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. Howard made his initial appearance this afternoon before U.S. Magistrate Judge Nathanael Cousins.
According to the indictment, filed Thursday, between November 7, 2018, and November 28, 2018, Howard, 18, of Sunnyvale, possessed and distributed cocaine and methamphetamine.
An affidavit filed by a Homeland Security Investigations agent in connection with a search warrant alleges that Howard developed the “Banana Plug” application, which was available on the Apple App Store. The Banana Plug App offered for sale contraband, including cocaine, “Molly,” and “Shrooms.” The app also invited customers to make special requests. Posters advertising the application had been hung up around the UC Santa Cruz campus. Upon discovering the posters and the application, a UC Santa Cruz police officer, in coordination with HSI, used the application to request a purchase of marijuana and cocaine and then communicated with Howard via Snapchat to set up the purchase. An undercover HSI agent made that purchase and separately continued to communicate with Howard on Snapchat to set up three additional purchases of controlled substances. The third and fourth purchases were for more than 5 grams of methamphetamine. At the fourth meeting, UC Santa Cruz police officers arrested Howard before any payment was made.
The indictment charges Howard with one count of distribution and possession with intent to distribute cocaine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C); one count of distribution and possession with intent to distribute methamphetamine, in violation of in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C); one count of distribution and possession with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B)(viii); and one count of possession with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B)(viii).
Howard was arrested on the federal charges on February 15, 2019, and was released after today’s initial appearance. Magistrate Judge Cousins scheduled Howard’s next court appearance for February 22, 2019, at 1:30 for a bail review hearing.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years prison time, and a fine of $1,000,000 for each of the two violations of 21 U.S.C. § 841(a)(1) and 841(b)(1)(C). He faces a minimum sentence of 5 years in prison and a maximum sentence of 40 years in prison, and a fine of $5,000,000 for each of two violations of 21 U.S.C. § 841(a)(1) and 841(b)(1)(B)(viii). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Sarah E. Griswold is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by Homeland Security Investigations and the University of California Santa Cruz Police Department.
U.S. Trustee Program Reaches $15 million Settlement with McKinsey & Company to Remedy Inadequate Disclosures in Bankruptcy CasesRead the Press Release
The Department of Justice’s U.S. Trustee Program (USTP) has entered into a multi-district settlement agreement with global consulting firm McKinsey & Company, Inc. (McKinsey), resolving disputes over the adequacy of McKinsey’s disclosures of connections in Chapter 11 bankruptcy cases. Under the Bankruptcy Code and Rules, the retention and payment of a professional firm by a debtor company in bankruptcy is contingent upon approval by the bankruptcy court after the firm discloses all of its connections to the debtor, creditors, and other parties. These strict disclosure requirements allow the court, USTP, and parties involved in the case to identify any conflicts of interest that may taint the professional’s advice and favor one interested party over another.
The USTP alleged that McKinsey made insufficient disclosures about its clients and investments in certain entities that were connected with the debtors that employed McKinsey to provide financial advice on their respective bankruptcy reorganizations. Specifically, the USTP alleged in court filings that McKinsey failed to identify clients who were connected with the debtors it represented and lacked candor regarding its investments in entities that could create a conflict of interest.
“This settlement ensures that McKinsey is held accountable for its conduct,” said USTP Director Cliff White. “Transparency is the linchpin of the bankruptcy system and professionals employed in bankruptcy cases must be free of conflicts of interest.. McKinsey failed to satisfy its obligations under bankruptcy law and demonstrated a lack of candor with the court and USTP. This settlement ensures that McKinsey is held to the same standards applicable to all professionals who participate in bankruptcy cases. If this conduct is repeated in future cases, we will seek even more far-reaching remedies.”
Settlement Terms
Under the terms of the settlement, McKinsey agrees to pay $15 million in three bankruptcy cases to remedy inadequate disclosures of connections and to make additional disclosures. The payment will be distributed to the creditors and other parties in accordance with the reorganization plans approved by the courts or other applicable law. This is one of the highest repayments made by a bankruptcy professional for alleged non-compliance with disclosure rules.
The USTP has agreed not to bring additional actions in these and other cases based on McKinsey’s past disclosures. If facts later show that those disclosures contained material misrepresentations or omissions that would have rendered McKinsey not disinterested or otherwise disqualified from retention, then the USTP is free to seek disqualification from employment, disgorgement of fees, and other remedies in the settled cases. While the agreement resolves disputes with the USTP, it does not impact the rights of any parties or government agencies not participating in the settlement. A term sheet for the proposed settlement has been filed in three U.S. Bankruptcy Courts, where the settlement will be subject to the courts’ approval. The cases are captioned Alpha Natural Resources, Case No. 15-33896 (Bankr. E.D. Va.), Westmoreland Coal, Case No. 18-35672 (Bankr. S.D. Tex.), and SunEdison, Case No. 16-10992 (Bankr. S.D.N.Y).
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Program has 21 regions and 90 field office locations. Learn more information on the Program at: https://www.justice.gov/ust.
Two Texas men sentenced to more than five years for trafficking in enough fentanyl to kill millionsRead the Press Release
SHREVEPORT, La. – Two Texas men were sentenced to 63 months in prison today for trafficking more than 10 kilograms fentanyl through Louisiana, U.S. Attorney David C. Joseph announced.
Felipe Rodriguez, 22, of McAllen, Texas, and Brandon Montoya, 24, of Kaufman, Texas, were sentenced by Elizabeth E. Foote for possession with intent to distribute fentanyl. They were also sentenced to five years of supervised release.
According to the guilty plea, a Louisiana State Police trooper stopped a vehicle on May 10, 2018 traveling on Interstate-20 eastbound in which Felipe Rodriguez was the driver and Brandon Montoya was the passenger. During a search of the vehicle, 10 one-kilogram packages containing pure fentanyl and a fentanyl derivative were found. Rodriguez and Montoya told agents they were approached in Mexico about work, asked to drive to California to obtain the drugs and then take the drugs to Atlanta, Georgia, where they would be paid for the delivery. The defendants understood that the work they were asked to do meant transporting the deadly narcotics. Both defendants pleaded guilty on September 13, 2018.
“The seizure of these drugs and the prosecution of these defendants is part of the Department of Justice’s ongoing fight against fentanyl and other deadly opioids,” Joseph stated. “These drugs are now the leading cause of accidental death in the United States -- more than even car accidents. This case alone involved enough fentanyl to kill every person in the state of Louisiana. I want to thank the dedicated law enforcement agents and prosecutor for the arrest and conviction of these defendants.”
Fentanyl is a synthetic opioid that is 80 to 100 times stronger than morphine. Pharmaceutical fentanyl was developed for pain management treatment of cancer patients, applied in a patch on the skin. Because of its powerful opioid properties, fentanyl is also diverted for abuse. Fentanyl is added to heroin to increase its potency or be disguised as highly potent heroin. Many users believe that they are purchasing heroin and actually don’t know that they are purchasing fentanyl, which often results in overdose deaths. Clandestinely-produced fentanyl is primarily manufactured in Mexico. For more information about fentanyl, visit www.dea.gov/factsheets/fentanyl.
The DEA, Homeland Security Investigations and Louisiana State Police investigated the case. Assistant U.S. Attorney Tiffany E. Fields prosecuted the case.
Twelve Individuals Indicted in February 2019 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the February 2019 Federal Grand Jury.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
RAUL ALEXIS GAMEZ-GARCIA, age 25, of Hermosillo, Senora, Mexico
DIANA LAURA GAMEZ-GARCIA, age 20, of Hermosillo, Senora, MexicoPossession With Intent To Distribute Methamphetamine
The Indictment alleges that on or about January 7, 2019, within the Eastern District of Oklahoma, the defendants, RAUL ALEXIS GAMEZ-GARCIA and DIANA LAURA GAMEZ-GARCIA, did knowingly and intentionally possess with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2, punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
Assistant United States Attorney Kristin Harrington
CARLOS FRANCISCO LAINEZ, age 34, of Las Vegas, Nevada
Possession With Intent To Distribute Methamphetamine
The Indictment alleges that on or about February 3, 2019, within the Eastern District of Oklahoma, the defendant, CARLOS FRANCISCO LAINEZ, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The charges arose from an investigation by the Sequoyah County Sheriff’s Office and the Drug Enforcement Administration.
Assistant United States Attorney Kristin Harrington
DUANE ALLYN BUNDY, age 40, of McAlester, Oklahoma
Possession With Intent To Distribute Methamphetamine
Possession Of A Firearm In Furtherance Of A Drug Trafficking CrimeThe Indictment alleges that on or about January 30, 2019, in the Eastern District of Oklahoma, the defendant, DUANE ALLYN BUNDY, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, a fine up to $1,000,000.00, or both.
The Indictment further alleges that on or about January 30, 2019, in the Eastern District of Oklahoma, the defendant, DUANE ALLYN BUNDY, did knowingly possess a firearm, to wit: one (1) Taurus, Model TCP, .380 caliber, semi-automatic pistol, serial number 79704B, 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 Count One, 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, a fine up to $250,000.00 or both.
The charges arose from an investigation by the McAlester Police Department, the Oklahoma Bureau of Narcotics and Dangerous Drugs Control, and the Drug Enforcement Administration.
Special Assistant United States Attorney Courtney Jordan
DARRELL DEWAYNE ROBERTS Jr., age 31, of Alma, Arkansas
Possession With Intent To Distribute Methamphetamine
The Indictment alleges that on or about December 31, 2018, within the Eastern District of Oklahoma, defendant, DARRELL DEWAYNE ROBERTS Jr., did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 years and not more than 40 years imprisonment, a fine up to $5,000,000.00, or both.
The charges arose from an investigation by the Roland Police Department and the Drug Enforcement Administration.
Assistant United States Attorney Edward Snow
JOSE SEBASTIAN-BELLO, age 51, of Mexico a/k/a Victor Antonio Martinez a/k/a Anthony Casen a/k/a Victor Martinez-Gonzalez a/k/a Jose Antonio-Ignacio a/k/a Lorenzo Castro Romero a/k/a Mario Diago Diego
Illegal Reentry Of Previously Removed Alien
The Indictment alleges that on or about October 1, 2018, in the Eastern District of Oklahoma, the defendant, JOSE SEBASTIAN-BELLO, a/k/a Victor Antonio Martinez, a/k/a Anthony Casen, a/k/a Victor Martinez-Gonzalez, a/k/a Jose Antonio-Ignacio, a/k/a Lorenzo Castro Romero, a/k/a Mario Diago Diego, an alien, was found to be knowingly in the United States after having been removed from the United States on or about June 10, 2015, at or near Laredo, Texas, and not having obtained the express consent of the Attorney General of the United States or the Secretary of Homeland Security to reapply for admission into the United States in violation of Title 8, United States Code, Sections 1326(a) and 1326(b), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Ardmore Police Department and U.S. Immigration and Customs Enforcement.
First Assistant United States Attorney Christopher Wilson
RHETT STEVEN RAGLAND, age 23, of Ada, Oklahoma
Felon In Possession Of Ammunition
The Indictment alleges that on or about October 30, 2018, in the Eastern District of Oklahoma the defendant, RHETT STEVEN RAGLAND, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, ammunition, to-wit: Seven (7) rounds of Giulio, Fiocchi and Lecco brand 9mm Luger caliber ammunition, which had been shipped and transported in interstate and foreign commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Pontotoc County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Sarah McAmis
MIKE DOUGLAS NOLAN, age 59, of Baton Rouge, Louisiana
Wire Fraud
The Superseding Indictment alleges that from in or about June 2011, and continuing until in or about May 2012, the defendant, MIKE DOUGLAS NOLAN, devised and intended to devise, executed and attempted to execute, a scheme to obtain money by means of materially false and fraudulent pretenses, representations and promises, in violation of Title 18, United States Code, Section 1343, punishable by not more than 20 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Federal Bureau of Investigation.
Assistant United States Attorney Rob Wallace
LIEUTENANT SKYLARE HOLSTICK, age 36, of Birmingham, Alabama
SHARA TYESHA CUMINS, age 29, of Opelika, Alabama a/k/a Shara Tyesha HolstickPossession With Intent To Distribute Marijuana
The Indictment alleges that on or about December 22, 2018, within the Eastern District of Oklahoma, the defendants, LIEUTENANT SKYLARE HOLSTICK and SHARA TYESHA CUMINS, aka SHARA TYESHA HOLSTICK, did knowingly and intentionally possess with intent to distribute less than 50 kilograms of marijuana, a Schedule I controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D) and Title 18, United States Code, Section 2, punishable by not more than 5 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Okmulgee County Sheriff’s Office and the Federal Bureau of Investigation.
Assistant United States Attorney Dean Burris
GARY DON HICKS, Sr., age 51, of McAlester, Oklahoma
Felon In Possession Of Firearm (2 Counts)
The Indictment alleges that on or about January 8, 2019, within the Eastern District of Oklahoma, the defendant, GARY DON HICKS Sr., having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Winchester, Model 290, .22 caliber semi-automatic rifle, serial number 401103, which had been shipped and transported in interstate and foreign commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment further alleges that on or about January 9, 2019, within the Eastern District of Oklahoma, the defendant, GARY DON HICKS Sr., having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Fratelli Tanfoglio, Model E1, .22 caliber revolver, serial number E800622, which had been shipped and transported in interstate and foreign commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Pittsburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Dean Burris
TEION ENLYN VANDAMM, age 43, of Frederick, Maryland
Possession With Intent To Distribute Cocaine
The Indictment alleges that on or about December 20, 2018, within the Eastern District of Oklahoma, the defendant, TEION ENLYN VANDAMM, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 and not more than 40 years imprisonment, a fine up to $5,000,000.00, or both.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
Assistant United States Attorney Jarrod Leaman
Tulsa Doctor Will Pay $84,666 for Allegedly Engaging in an Illegal Kickback SchemeRead the Press Release
TULSA, Okla. –A Tulsa doctor has agreed to pay the government $84,666.42 for allegedly accepting illegal kickback payments from OK Compounding, LLC, announced U.S. Attorney Trent Shores.
The U.S. Attorney’s Office in the Northern District of Oklahoma has entered into a settlement agreement with Brandon Claflin, 42, a licensed doctor of osteopathic medicine, in an effort to recoup the costs to the U.S. government resulting from the illegal kickbacks. This civil settlement resulted from an investigation into numerous health care providers writing prescriptions for pain creams compounded and sold by OK Compounding.
“Our Affirmative Civil Enforcement attorneys continue to prioritize these cases in an effort to recover illegally obtained funds that served to line the pockets of the corrupt,” said U.S. Attorney Trent Shores. “We are committed to ensuring that federal health care dollars are spent judiciously and in accordance with the law. Our diligence in this area sends a clear signal that abuse of federal health care programs will not be tolerated.”
Beginning in 2013, Dr. Claflin prescribed these pain creams for his patients, facilitating the sale and distribution of the creams. As compensation for his services, OK Compounding, paid Dr. Claflin what was characterized by the parties as “medical director fees” based upon an hourly rate. However, the payments Dr. Claflin received from the company were, in actuality, “kickbacks.” Because some of his patients were insured by TRICARE and the Office of Workers’ Compensation Programs of the United States Department of Labor, the kickbacks were in violation of the False Claims Act. It is illegal to pay or receive “kickbacks” in conjunction with federal healthcare insurance.
Prohibitions against kickbacks are crucial to insure that financial motives do not undermine the medical judgment of physicians and other health care providers. The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs.
The agreement resolves allegations that Dr. Claflin had an illegal financial relationship with OK Compounding, concerning pain creams from 2013 through 2014.
This matter was handled by Assistant U.S. Attorney Marianne Hardcastle and is the product of a collaborative investigation by the Defense Criminal Investigative Service, Department of Labor–Office of Inspector General (OIG), IRS–Criminal Investigation, U.S. Postal Service–OIG, FBI, Department of Veterans Affairs–OIG and the Department of Health and Human Services–OIG.
Affirmative Civil Enforcement (ACE) refers to filing civil lawsuits on behalf of the United States. The purpose of these civil actions is to recover government money lost to fraud or other misconduct or to impose penalties for violations of Federal health, safety, civil rights or environmental laws.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Three Marshall County residents and an Ohio man admit to drug distribution chargesRead the Press Release
WHEELING, WEST VIRGINIA – Four people have admitted to drug distribution charges, United States Attorney Bill Powell announced.
John Crow, of Moundsville, West Virginia, Jamie L. Moore, of Moundsville, West Virginia, and James Wood, of Moundsville, each pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine.” Crow, age 49, Moore, age 47, and Wood, age 45, admitted to conspiring with others to distribute methamphetamine in 2017 and 2018 in Marshall County.
Cornell D. Wallace, of Canton, Ohio, pled guilty to one count of “Distribution of Methamphetamine.” Wallace, age 28, admitted to selling methamphetamine in August 2018 in Marshall County.
Crow, Moore, Wood, and Wallace each face up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr., is prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Three Jacksonville Tax Return Preparers Indicted on Federal Tax Fraud ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of indictments charging Jacksonville residents Paul Berkins Moise, Joanna Arlean Tukes, and Schquan Antionette Shanks with aiding and assisting others with the filing of false tax returns. The indictments, which are unrelated, allege that each of the individuals owned and operated a tax preparation business in Jacksonville.
Moise is charged with 22 counts of filing false tax returns, Tukes is charged with 25 counts of filing false tax returns, and Shanks is charged in 21 counts of filing false tax returns and 3 counts of filing false personal income tax returns. Each count carries a maximum penalty of three years’ imprisonment. The United States also seeks restitution for the tax loss arising out of the alleged criminal conduct.
According to Moise’s indictment, between February 2013 and March 2017, Moise defrauded the IRS by filing returns for taxpayers in which he falsely claimed, among other things, that the taxpayers had incurred business expenses and unreimbursed employee expenses, had paid state and local sales taxes in an inflated amount, and had made gifts to charity in an inflated amount. The indictment specifically alleges the filing of 22 false returns on behalf of eight taxpayers for the tax years 2012 through 2016.
According to Tukes’s indictment, between February 2013 and March, 2017, Tukes defrauded the IRS by filing returns for taxpayers in which she falsely claimed, among other things, that the taxpayers had incurred business expenses and unreimbursed employee expenses, had incurred medical and dental expenses in an inflated amount, had paid state and local sales taxes in an inflated amount, and had made gifts to charity in an inflated amount. The indictment specifically alleges the filing of 25 false returns on behalf of nine taxpayers for the tax years 2012 through 2016. The indictment also alleges that Tukes significantly underreported the income she made from her tax preparation business, alleging that she made approximately $219,686 in 2013 but reported only $14,600, that she made approximately $294,049 in 2014 but reported only $10,500, and that she made approximately $465,855 in 2015 but reported only $50,540.
According to Shanks’s indictment, between February 2015, and February 2018, Shanks defrauded the IRS by filing returns for taxpayers in which she falsely claimed, among other things, that the taxpayers had incurred business expenses and had dependents for whom they could claim an exemption. The indictment specifically alleges the filing of 21 false returns on behalf of eight taxpayers for the tax years 2014 through 2017.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the Internal Revenue Service Criminal Investigation. They will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Three Cincinnati Men Charged in Narcotics ConspiracyRead the Press Release
CINCINNATI – A federal grand jury has charged three Cincinnati men in a narcotics conspiracy punishable by at least 10 years up to life in prison in an indictment returned here February 6 and unsealed today.
Derek Ragan (Duke), 49, Anthony Sanderson (Pea Head), 63, and Lawrence Bell (LB), 66, are charged with conspiring to collectively distribute more than 400 grams of fentanyl.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Cincinnati Police Chief Eliot K. Isaac announced the charges, which followed the extensive investigation by the FBI’s Safe Streets Task Force.
According to the indictment, fentanyl and other drugs were brought into the Cincinnati area where they were further processed, cut, combined, packaged and stored prior to distribution. The co-conspirators allegedly used “Duke’s Place” on Oliver Street in Cincinnati to distribute the illegal opioids.
The indictment also charges eight counts of distributing fentanyl, one count of possessing fentanyl, one count of using a premises for drug distribution and one count charging Ragan with illegally possessing a firearm.
Agents seized more than $10,000 in cash, additional narcotics, and the firearm from two residences while executing search warrants in this case on November 16, 2018.
Conspiracy to distribute more than 400 grams or more of fentanyl is a federal crime punishable by 10 years up to life in prison. Distributing and possessing with the intent to distribute 40 grams or more of fentanyl are crimes that carry a potential sentence of five to 40 years in prison. Operating a drug premises is punishable by up to 20 years in prison. Possessing a firearm as a convicted felon is punishable by up to 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Cincinnati Police, as well as Assistant United States Attorney Karl P. Kadon and Criminal Chief Kenneth L. Parker, who are prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Thief Who Helped Steal Nearly $800,000 from the City of Bryan Sent to PrisonRead the Press Release
HOUSTON - A 40-year-old resident of Atlanta, Georgia, resident has been sentenced to prison for conspiracy to commit wire fraud, announced U.S. Attorney Ryan K. Patrick. Derrick Ervin pleaded guilty Nov. 19, 2018.
Today, U.S. District Judge Lynn N. Hughes sentenced Ervin to 77 months in federal prison to be immediately followed by three years of supervised release. He was also ordered to pay restitution in the amount of $998,188.50. In handing down the sentence, the court noted that the prison term would give Ervin the chance to live Also, Judge Hughes stated, “Prison will give you the opportunity to live “without temptation.”
At the time of his guilty plea, Ervin admitted that in March 2018, conspirators sent fraudulent emails to the City of Bryan posing as the city’s vendors. In them, conspirators directed the city to send money to what were purportedly the vendors’ “new” bank accounts.
In reality, however, the conspirators controlled those accounts.
Three payments were sent, totaling $779,807.50.
Ervin participated in the conspiracy by opening a bank account under a stolen identity to receive much of the stolen money and distributing it amongst the conspirators.
As part of his guilty plea, Ervin also admitted to participating in other frauds including receiving at least $50,000 in October 2017 as part of a romance fraud scheme, as well as more than $90,000 as part of a business email compromise.
Ervin has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and the Bryan Police Department jointly conducted the investigation. Assistant U.S. Attorney Michael Chu prosecuted the case.
Stuart Physician Convicted of 23 Counts of Health Care FraudRead the Press Release
On February 15, 2019, a doctor who previously worked in Stuart, Florida, was convicted by a federal jury of committing repeated acts of health care fraud.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Miami Regional Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Ashley B. Moody, Florida Attorney General, made the announcement.
Sheetal Kanar Kumar, M.D., 48, formerly of Stuart, Florida, was found guilty by a jury of committing twenty-three counts of health care fraud (Case No. 18-14063-CR-Marra). Dr. Kumar is scheduled to be sentenced on April 19, 2019 at 10:00 a.m., by U.S. District Judge Kenneth A. Marra in Fort Pierce.
According to the court record, including evidence introduced at trial, Dr. Sheetal Kumar owned and operated the medical practice Advanced Healthcare for Women in Stuart, Florida. Dr. Kumar was an obstetrician and gynecologist who treated incontinence. From at least as early as January 2014, until July 2017, Dr. Kumar submitted or caused the fraudulent submissions of claims to Medicare, Medicaid and private insurance companies. The fraudulent claims sought money for specific health care benefits, items, and services that were not provided as billed. As a result of such false and fraudulent claims, Medicare, Medicaid and private insurance companies, made payments in the approximate amount of $637,000.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HHS-OIG, FBI and Florida Attorney General’s Medicaid Fraud Control Unit in this matter. This case is being prosecuted by Assistant U. S. Attorneys Daniel E. Funk and Diana M. Acosta.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Stilwell Man Sentenced to 34 Months, $33,000 Restitution for Possession of Stolen FirearmRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Stoney Ray Mendenhall, age 19, of Stilwell, Oklahoma, was sentenced to 34 months’ imprisonment, three years of supervised release, and ordered to pay restitution in the amount of $33,767.23, for Possessing, Receiving And Concealing A Stolen Firearm, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2). The charges arose from an investigation by the Adair County Sherriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
The Indictment alleged that on or about February 3, 2018, within the Eastern District of Oklahoma, the defendant, Stoney Ray Mendenhall, knowingly possessed, received and concealed a stolen firearm which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “Violent criminals frequently use stolen firearms to commit their crimes, so bringing someone to justice that has stolen or knowingly possesses a stolen firearm goes hand-in-hand with our efforts to combat violent crime. I am glad we were able to work with the Adair County Sheriff’s Office and the ATF to achieve a swift and just resolution to this case.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Statement by Attorney General William P. Barr on President Donald J. Trump’s Intent to Nominate Jeffrey A. Rosen as Deputy Attorney General of the United StatesRead the Press Release
Attorney General William P. Barr issued the following statement:
"Jeffrey Rosen is a distinguished lawyer who has served at the highest levels of government and the private sector," said Attorney General William P. Barr. "As an attorney, he has more than 35 years’ experience litigating complex matters in state and federal courts across the country, including as a partner at Kirkland & Ellis. He supervised more than 400 attorneys while serving as General Counsel at the Department of Transportation and also served as General Counsel and Senior Policy Advisor at the White House Office of Management and Budget. He currently serves as Deputy Secretary of Transportation, where he leads 50,000 employees. His years of outstanding legal and management experience make him an excellent choice to succeed Deputy Attorney General Rod Rosenstein, who has served the Department of Justice over many years with dedication and distinction.”
Project Safe Neighborhoods Grant Program Now Accepting ApplicationsRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that the application period for Project Safe Neighborhood (PSN) grants has opened. Project CeaseFire is South Carolina’s implementation of PSN, a nationwide initiative that awards grants to state agencies, local units of government, and non-profit agencies to fund innovative projects designed to reduce firearm and drug-related violence in our communities. The District of South Carolina will award $547,945.00 in grant funding. The South Carolina Department of Public Safety Office of Highway Safety and Justice Programs (OHSJP) has been selected to administer this grant program on behalf of the United States Attorney’s Office and the Department of Justice.
“The U.S. Attorney’s Office is proud to provide critically-needed resources to communities across our state who are working to protect South Carolinians from dangerous, repeat offenders,” said U.S. Attorney Lydon. “Through Project CeaseFire, we are locking arms with our federal, state, and local partners to reduce gun and gang-related violence. Together, we will continue to work toward turning the tide of violent crime in South Carolina.”
More information concerning the PSN grant program may be found at https://scdps.sc.gov/ohsjp/cj-grants/safe-neighborhoods. The application deadline is Friday, April 19, 2019. Please contact OHSJP with questions or for technical assistance with an application.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. It is an evidence-based program proven to be effective at reducing violent crime. 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. The initiative promotes partnerships among federal, state, and local law enforcement agencies; strategic planning incorporating such technologies as crime mapping, gun tracing, and ballistic analysis; training that brings together federal, state, and local officials to build effective teams; outreach to communities; and accountability for impact on community safety.
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Pittsburgh Man Pleads Guilty to Drug Charges in Operation Gang Green InvestigationRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, pleaded guilty in federal court to charges of conspiracy to distribute cocaine and possession with intent to distribute cocaine, United States Attorney Scott W. Brady announced today.
Marvin Younger, age 37, pleaded guilty on February 14, 2019, to two counts before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Marvin Younger conspired to distribute 500 grams or more of cocaine and possessed cocaine with the intent to distribute it.
Judge Schwab scheduled sentencing for July 2, 2019 at 9:00 a.m. The law provides for a total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorneys Tonya Sulia Goodman and Rachael Dizard are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation "Operation Gang Green", which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, that led to the prosecution of Marvin Younger.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pittsburgh Felon Sentenced to Nearly 5 Years in Prison for Federal ViolationsRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been sentenced to four years and 10 months incarceration for his convictions of violating federal firearms laws and violating the terms of his supervised release, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed a 46-month prison sentence on Deondre Steave, 26, for violating firearms laws. Judge Bissoon also imposed 12-month sentence of incarceration to run consecutively to the 46-month sentence because the defendant violated the conditions of his supervised release in two other federal prosecutions of Steave.
According to the information presented to the court, the court was advised that on or about September 28, 2017, Steave, an individual with prior felony convictions for Conspiracy to Possess with the Intent to Distribute 100 Grams or More of Heroin and Escaping from Federal Custody, did knowingly and unlawfully possess a Kahr CW .40 caliber pistol and ammunition. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government. This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The United States Attorney commended the Pittsburgh Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Steave.
Philadelphia Gang Member Convicted by Jury of Murder and Additional Drugs and Firearms CrimesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Bryant Calloway a/k/a “Bigs,” 32, of Philadelphia, was convicted today by a jury of one count of murder. He was also convicted of one count of conspiracy to distribute 280 grams or more of cocaine base; one count of using, carrying, brandishing and discharging a firearm during a drug trafficking crime; one count of maintaining a house for drug distribution (and doing so within 1,000 feet of a playground); and one count of being a felon in possession of a firearm.
The defendant and his co-conspirators were part of a single drug-trafficking organization (DTO) that distributed crack cocaine in and around an area known colloquially as “the Pit” – a playground located near the area of 5101 Reno Street in the Mill Creek section of West Philadelphia. The DTO operated to distribute crack cocaine from at least as early as 2009 and continued through 2015. During its duration, the conspiracy used several different locations to distribute crack cocaine, as well as several locations to store, manufacture, and package crack cocaine for distribution. In order to further their drug distribution, the members of the DTO routinely possessed and used firearms.
Beginning in summer 2013, the defendant began making attempts to take control of a portion of the crack sales being conducted in “the Grounds,” a nearby playground basketball court which was controlled by a competing crack distribution group. The defendant and others felt that they were not selling enough crack near “the Pit” and sought to sell crack at night in “the Grounds,” which had a higher volume of crack customers and presented an opportunity to make more money. “The Grounds” organization resisted “the Pit’s” requests to sell crack in “the Grounds.” As a result of the dispute, on August 5, 2013, the defendant and another individual entered into “the Grounds” and shot and killed a man who was a crack distributor for “the Grounds” organization.
In retaliation for the murder, members of “the Grounds” organization conspired to shoot Calloway. As a result of those efforts, Calloway was shot and injured. Calloway survived his injuries, but told officers that he did not see who shot him. Within twenty-four hours of the shooting of Calloway, one of the members of “the Pit” traveled to an area controlled by the “Grounds” and fired multiple rounds down a residential street. An innocent bystander (not associated with “the Grounds” organization) was shot and injured.
“The defendant shot and murdered another individual in a drug turf dispute,” U.S. Attorney McSwain said. “Drug trafficking begets violence. Violence only begets more violence. As a result of the murder, more people – including the defendant himself and an innocent bystander – were also shot. My Office is committed to keeping the streets of our community safe from these kinds of horrific acts.”
“The ATF is committed to working with our federal, state, and local law enforcement partners to target violent drug trafficking organizations that are responsible for drug trafficking and related gun violence in our communities,” said ATF Special Agent in Charge Donald Robinson. “This conviction is a perfect example of the collaborative effort between the ATF and the Philadelphia Police Department to target those violent offenders.”
"The investigation, arrest, and successful prosecution of Bryant Calloway serves as an example of the effectiveness of strong and consistent collaboration between law enforcement agencies," said Richard J. Ross Jr., Philadelphia Police Commissioner. "We anticipate that this conviction will further disrupt narcotics trafficking and attendant criminal activity in the Mill Creek section of our city and have an appreciable impact on the quality of life of our residents.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department, and the case is being prosecuted by Assistant United States Attorneys Jonathan Ortiz and Seth Schlessinger.
Parkersburg man admits to drug distribution chargeRead the Press Release
WHEELING, WEST VIRGINIA – Christopher S. McCallister of Parkersburg, West Virginia, has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
McCallister, age 28, pled guilty to one count of “Conspiracy to Distribute and to Possess With the Intent to Distribute Controlled Substances.” McCallister admitted to distributing methamphetamine, heroin, cocaine, and cocaine base in Wetzel County, as well as the Southern District of West Virginia, Ohio, and Georgia from 2016 to April 2018.
McCallister faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge James P. Mazzone presided.
Olean Man Arrested for Production of Child PornographyRead 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 Jacob Tunison, 29, of Olean, NY, was arrested and charged by criminal complaint with production of child pornography. The charge carries a minimum penalty of 15 years in prison, a maximum penalty of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that according to the complaint, on January 14, 2019, the Cuba, NY Police Department alerted the FBI regarding the possible sexual exploitation of a child using social media. Subsequent investigation determined that in November of 2018, Tunison used one or more social media applications to communicate with a 13 year old female. The defendant sent numerous lewd images of himself to the minor, and solicited the minor to produce and send various images of herself to him.
Tunison made an appearance before U.S. Magistrate Judge Michael J. Roemer and is being held following a detention hearing.
The criminal complaint is the result of an investigation by the Cuba Police Department, under the direction of Chief Dustin Burch, and the Federal Bureau of Investigation, Jamestown Office, under the direction of Special Agent-in-Charge Gary Loeffert.
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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Ohio man admits to drug distribution chargeRead the Press Release
WHEELING, WEST VIRGINIA – Tyler Estep, of Galloway, Ohio, has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
Estep, age 31, pled guilty to one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances.” Estep admitted to conspiring with others to distribute methamphetamine, heroin, cocaine, and cocaine base in Wetzel County, West Virginia, as well as Ohio and Georgia from July 2015 to April 2018.
Estep faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr., is prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge James P. Mazzone presided.
Ohio Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
CHARLESTON, W.VA. – An Ohio man pled guilty to a federal firearms charge, said United States Attorney Mike Stuart. Brandon Ray Simpson, 29, pled guilty to being in possession of a firearm with an obliterated serial number. The investigation was conducted by the West Virginia State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On February 7, 2017, the West Virginia State Police stopped a vehicle in the Mill Creek Area, Logan County, West Virginia, for the driver’s failure to wear a seat belt. The Trooper also recognized the driver and knew the driver’s license was suspended. Simpson was in the vehicle as the passenger and he exited the vehicle running from the State Police. Simpson had a firearm in his waistband, and attempted to discard the firearm by tossing it into a nearby creek. Trooper caught Simpson and retrieved the firearm from the creek. The gun’s serial number was obliterated, likely with a grinder.
Simpson faces up to 10 years in prison on the possession of an obliterated serial number charge when he is sentenced on May 20, 2019.
United States District Judge Joseph R. Goodwin presided over the plea hearing. Assistant United States Attorney Chris Arthur is handling the prosecution.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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North Pole Man Sentenced to 15 Years for Child Pornography CrimesRead the Press Release
Fairbanks, Alaska – U.S. Attorney Bryan Schroder announced that Eric Whitebread, 43, resident of North Pole, Alaska, was sentenced on Friday, Feb. 15, 2019, by U.S. District Judge Ralph R. Beistline, to 15 years in prison, to be followed by a 35-year term of supervised release, for distribution and receipt of child pornography.
According to evidence presented at trial, on two different days in June 2015, Whitebread distributed files of child pornography through an online file-sharing network. Upon execution of a search warrant at Whitebread’s North Pole residence, law enforcement located his computer. Located on the computer were 618 images of child pornography that had been downloaded through the file-sharing network between July 14, 2015, and August 24, 2015. Contextual evidence discovered by law enforcement during a forensic examination of Whitebread’s computer – including data recovered from millions of lines of computer code – located numerous indicators that child pornography was being downloaded and viewed on the computer at times when Whitebread’s text messages showed him to be home and online. In addition, the computer did not show any activity at times the evidence showed Whitebread was away from the house.
Whitebread, his wife, and two other witnesses testified in the defense case. Each stated that multiple people came and went from Whitebread’s property and had access to the computer, and that the password was posted on a Post-It note left on the device. This testimony was inconsistent with the fact that the computer was seized from Whitebread’s private residence without any Post-It notes. Whitebread and his wife also stated that the account through all of the child pornography activity occurred was a locked account to which they did not have access, and that they only accessed the computer for work purposes, and only through a separate account that had been created in June 2015. In rebuttal, law enforcement demonstrated that this testimony was false, as the separate account was actually created in November 2013.
As part of sentencing, the United States introduced evidence that the defendant had previously been accused of inappropriately touching a minor child, and of having been engaged in a sexual relationship with a 15-year-old when he was in this 20’s.
At sentencing, Judge Beistline described the evidence against Whitebread as “overwhelming.” Judge Beistline noted that Whitebread had attempted to obstruct justice with his false trial testimony, was in “complete denial” about what he had done, and that he “had shown absolutely no remorse” for his conduct. Judge Beistline went on to add that by downloading and distributing child pornography the defendant had “victimized helpless minors by contributing to the market for child pornography.” Because of the marketplace for child pornography, the defendant “must be deterred, and others similarly-situated must be deterred,” said Judge Beistline.
This case was investigated by the Federal Bureau of Investigation (FBI), and the Anchorage Police Department, Crimes Against Children Unit (CACU). Assistant U.S. Attorneys Anne Veldhuis and Kyle Reardon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, 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.
New Hampshire Man Sentenced to 1½ Years for Social Security FraudRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Lachlan Olen Granite, a/k/a “Scott Edward Bounds,” 54, of Center Ossipee, New Hampshire, was sentenced today in U.S. District Court by Judge George Z. Singal, to 1½ years in prison and three years of supervised release for making false statements to the Social Security Administration (SSA). The defendant pled guilty on July 25, 2018.
According to court records, in 2017, the defendant applied for a Social Security number (SSN), claiming that he had not been issued one. In fact, he had been issued a SSN under his birth name “Scott Edward Bounds.” The defendant sought the new SSN because he was then in violation of court-ordered child and spousal support and thought that changing his SSN would help him evade those orders. The defendant also intended to seek a new driver’s license using his new SSN, because his license had been suspended due to his failure to pay child support in 2014.
As a condition of supervised release, Judge Singal ordered the defendant to comply with his outstanding child and family support obligations.
The investigation was conducted by SSA, Office of the Inspector General.
Muskogee Man Sentenced to 52 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brian Fredric Joice, age 40, of Muskogee, Oklahoma, was sentenced to 52 months imprisonment and 3 years of supervised release for Felon In Possession Of Firearm & Ammunition in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Muskogee County Sherriff’s Office and the Federal Bureau of Investigation.
The Indictment alleged that on or about March 7, 2018, within the Eastern District of Oklahoma, the Defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “It is great to see federal and local law enforcement agencies working together. This case, like so many others in the Eastern District, is the result of agencies from different jurisdictions having open lines of communication and understanding that when we work together we can make a bigger impact on the communities that we serve.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Kristin Harrington represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Monongalia County woman admits to role in drug distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Carissa Moore, of Morgantown, West Virginia, has admitted to her role in a drug distribution operation, United States Attorney Bill Powell announced.
Moore, age 27, pled guilty to one count of “Unlawful Use of Communication Facility.” Moore admitted to using a phone to distribute and conspire to distribute a controlled substance in April 2018 in Monongalia County.Moore faces up to four years incarceration and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted in the arrests.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Memphis Man Pleads Guilty to Multiple Business RobberiesRead the Press Release
Memphis, TN – A local man has pled guilty to six counts of Hobbs Act robbery and two counts of brandishing a firearm during and in relation to a crime of violence. U.S. Attorney D. Michael Dunavant announced the guilty plea today.
On November 15, 2018, a federal grand jury returned a ten-count indictment against Brandon Albonetti, 23, for the robberies and attempted robberies of five CVS stores and one Burger King during the summer of 2018.
According to information presented in court, the robberies occurred in Memphis, between June 21, 2018 and August 14, 2018. In several of these robberies, Albonetti entered the respective stores armed with a pistol, taking cash and other items from the registers and safes. In two robberies, Albonetti displayed a knife as he demanded cash. The defendant robbed the CVS located at 786 North Germantown Parkway twice and the CVS at 5055 Stage Road three times during this time period.
On August 14, 2018, Memphis Police officers quickly responded and apprehended Albonetti as he tried to flee the scene of the CVS on Stage Road, which he had just robbed. The defendant used his vehicle to strike two patrol cars as authorities positioned their vehicles to keep the suspect from escaping.
U.S. Attorney D. Michael Dunavant said: "Business owners have a fundamental right to be safe from armed robbers who terrorize our communities with their lawlessness. The senselessness of gun violence has a long lasting effect on victims of armed robbery, and we will no longer allow gun crime to rule our streets. This case sends a clear message that there will always be a reckoning, a real and significant consequence, for the commission of violent crimes."
The defendant pled guilty on February 15, 2019, before the Honorable Sheryl H. Lipman. He is scheduled for sentencing on May 23, 2019. Albonetti faces up to 20 years imprisonment on each robbery count. He faces a mandatory minimum consecutive sentence of 7 years and to life imprisonment on each firearm count.
This case was investigated by the FBI Safe Streets Task Force; Memphis Police Department and the Shelby County District Attorney General’s Office.
Special Assistant U.S. Attorney Bryce Phillips is prosecuting this case on the government’s behalf. SAUSA Phillips is currently assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
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Media Advisory -- United States Attorney Mike Stuart and Law Enforcement Partners to Hold Press ConferenceRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart will hold a press conference tomorrow, Wednesday, February 20, at 10:30a.m., to discuss developments regarding health care fraud related matters.
WHO: United States Attorney Mike Stuart, Southern District of West Virginia
Supervisory Senior Resident Agent Wes Quigley, Federal Bureau of Investigation
Group Supervisor Jim Hischar, Drug Enforcement Administration
Assistant Special Agent in Charge Mary Ann Withrow, U.S. Department of Health
and Human Services-OIG
Director Mike Malone, Medicaid Fraud Control Unit
Investigative Supervisor Jason Fisher, Medicaid Fraud Control Unit
WHAT: Press Conference
WHEN: Wednesday, February 20, 2019 @ 10:30am
WHERE: U. S. Attorney’s Office
Robert C. Byrd U.S. Courthouse
300 Virginia Street, Room 400
Charleston, WV
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Mason County Woman Sentenced for Theft of Veterans BenefitsRead the Press Release
HUNTINGTON, W.Va. – A Mason County woman was sentenced today to three months federal incarceration to be followed by three years of supervised release, with the first six months of supervised release to be served at an in-patient substance abuse treatment center, announced United States Attorney Mike Stuart. Brandi Moore, 39, of Gallipolis Ferry, previously pled guilty to an indictment on September 24, 2018 charging her with felony offense of theft of government benefits. She was also ordered to pay back $34,000 for her theft of government benefits. The investigation was the result of a joint effort by the United States Department of Veterans Affairs-Office of Inspector General and the Federal Bureau of Investigation.
“Sadly, stealing a deceased relative’s government benefits happens far too often,” said United States Attorney Mike Stuart. “This is nothing short of theft of government benefits and the taxpayers money. We take these dishonest and dishonorable cases seriously and we prosecute every case to the fullest extent of the law. Stealing government benefits will land you in federal prison and will result in the loss of any federal benefits for the rest of your life.”
Moore admitted that she had a family member who was a United States military veteran. This veteran died on November 9, 2011. Moore did not report his death and the veterans benefits continued to accrue in the designated bank account. Moore knew she was not entitled to receive any of this money. From November 2011 through April 2013, Moore accessed the veteran’s bank account and began making cash withdraws on 191 separate occasions. Primarily, Ms. Moore used an ATM card to make the withdrawals, though she also admitted forging a name on at least one check constituting an endorsement. The total loss to the United States Treasury was $34,393. On April 4, 2017, Moore gave a detailed statement to federal investigators admitting she withdrew the money and was not entitled to do so.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Erik S. Goes handled the prosecution.
Follow us on Twitter: SDWVNews
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Man Who Lived Under False Identity for Thirty Four Years Sentenced to Thirty Months in Federal PrisonRead the Press Release
DENVER – James Thompson of Denver was sentenced late last week to serve 30 months in federal prison for misuse of a Social Security number, U.S. Attorney Jason Dunn and Social Security Office of the Inspector General Wilbert Craig announced. The sentence was handed down by U.S. District Court Judge Philip A. Brimmer. After serving his 30 months, Thompson will then spend 3 years on supervised release. He also was ordered to pay $930.20 in restitution to the Social Security Administration. He was remanded at the conclusion of the sentencing hearing.
The defendant was indicted by a federal grand jury in Denver on July 7, 2018. He pled guilty before Judge Brimmer on November 9, 2018. He was sentenced on February 15, 2019.
According to court documents and facts presented at sentencing, James Thompson was a drug dealer in Oklahoma City in the 1980s and allowed one of his customers to purchase drugs in exchange for that customer’s identification documents. Shortly thereafter, Thompson moved to Colorado and, by 1984, had begun living under his former customer’s name. Thompson was convicted of several felonies under his false identity, including second degree murder and numerous serious drug felonies. In 2015, while on supervised release for a federal drug conviction, Thompson applied for Social Security benefits under his former customer’s name and was approved. Shortly thereafter, the former customer himself tried to apply for benefits in Oklahoma but was told he could not because someone was already receiving disability benefits in his name in Colorado. The customer was then forced to spend more than two years proving his true identity—during which time he was homeless and suffered substantial financial hardship.
This case was investigated by the Office of the Inspector General for the Social Security Administration. The defendant was prosecuted by Special Assistant U.S. Attorney Dan Burrows.
Leader of Identity Theft Conspiracy SentencedRead the Press Release
The conspirators helped illegal aliens obtain Michigan driver’s licenses. These aliens had criminal convictions that previously led to their removal to the Dominican Republic.
GRAND RAPIDS, MICHIGAN — Michelle Martinez-Marte, 37, of Rhode Island, was sentenced to 4 years in federal prison, U.S. Attorney Andrew Birge announced today. Martinez- Marte previously pled guilty in the Western District of Michigan to charges returned by grand juries in both Michigan and Massachusetts related to her involvement in a conspiracy to assist illegal aliens from the Dominican Republic with obtaining driver’s licenses using the identities of others. In sentencing Martinez-Marte, Chief U.S. District Judge Robert J. Jonker commented that Martinez-Marte was at the center of a very significant conspiracy that assisted others with prior criminal records in residing illegally in the United States.
U.S. Attorney Birge added that, "The use of someone else’s identity is a very serious crime. This conspiracy was particularly brazen because defendants assisted many individuals previously removed from our country after criminal convictions – including drug-trafficking crimes – in establishing new identities through Michigan driver’s licenses so that they could again live in our country undetected by immigration authorities. My office will continue to vigorously prosecute those who enter this country illegally and steal the identities of innocent citizens."
Between at least April 4, 2016, and July 20, 2017, Martinez-Marte conspired with Eddie Michael Balderramas of Kalamazoo, Michigan, to commit identity theft and social security account number fraud. Martinez-Marte, a citizen of the Dominican Republic illegally residing in Rhode Island, assisted other illegal aliens from the Dominican Republic in acquiring counterfeit Puerto Rican birth certificates, driver’s licenses, and social security account number cards in the names of actual individuals. Martinez-Marte would then refer the illegal aliens to Eddie Balderramas. Eddie Balderramas would travel to New York City and transport the illegal aliens to Michigan, where they would be harbored at a home in Kalamazoo. Eddie Balderramas produced false leases, paystubs, and other documents to make it appear as if the illegal aliens were truly Michigan residents. Eddie Balderramas would then transport the illegal aliens to Michigan Secretary of State Offices and would use the counterfeit Puerto Rican and Michigan residency documents to acquire authentic Michigan driver’s licenses for these illegal aliens using the name, social security account number, and other personal identifiers of actual individuals. The illegal aliens paid Eddie Balderramas for their assistance so that they could live in the country without detection by immigration authorities, as many were previously removed from the United States in their real names after sustaining criminal convictions.
"Sadly, the long-term outcome of identity-theft crimes act as an almost permanent destabilizing force on the lives and livelihoods of the victims. These crimes often impact the victims’ ability to obtain lines of credit and current or future job prospects, among other things," said Steve Francis, Homeland Security Investigations Detroit special agent in charge. "This case demonstrates HSI’s unwavering commitment to see that perpetrators of identity crimes are brought to justice."
Martinez-Marte is the latest of five individuals sentenced for their roles in the conspiracy. Previously sentenced were:
• Eddie Michael Balderramas, 51, Kalamazoo, Michigan, leader of conspiracy (4 years’ imprisonment)
• Michael James Balderramas, 28, Kalamazoo, Michigan, son of Eddie Michael Balderramas and member of conspiracy (3 years’ probation)
• Freddy Medina, 39, Dominican Republic, illegal alien who obtained Michigan driver’s license through fraud (1 year imprisonment, followed by deportation)
• Victor Manuel Calderon-Rodriguez, illegal alien who obtained Michigan driver’s license through fraud (imprisonment of 12 months and 1 day, followed by deportation)
Others currently convicted and awaiting sentencing include:
• Malkin Arialdys Villar-Medrano, 45, Dominican Republic, illegal alien who obtained Michigan driver’s license through fraud (sentencing March 14, 2019, Grand Rapids)
• Julio Francisco Troncoso-Marinez, 37, Dominican Republic, illegal alien who obtained Michigan driver’s license through fraud (sentencing March 11, 2019, Grand Rapids)
• Juan Manuel Pena-Zapata, 39, Dominican Republic, illegal alien who obtained Michigan driver’s license through fraud (sentencing February 19, 2019, District of Rhode Island)
This prosecution was the result of a cooperative effort between local, State, and Federal law enforcement in Michigan and Massachusetts. The Michigan State Police worked closely with the Michigan Secretary of State’s Office upon receiving information from Boston police that individuals arrested on drug-trafficking charges possessed Michigan driver’s licenses with common addresses in Kalamazoo. Those offices then assisted the federal investigation, which was handled by the Grand Rapids offices of the Department of Homeland Security, Homeland Security Investigations, and the United States Drug Enforcement Administration. Assistant United States Attorney Ronald M. Stella handled the prosecution with cooperation and important assistance from the United States Attorney’s Office in Boston.
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