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15 February 2019
US Attorney's Office Collects Nearly $40 Million in 2018Read the Press Release
MADISON, WIS. – U.S. Attorney Scott C. Blader announced today that the Western District of Wisconsin collected $39,852,608 in criminal and civil actions in Fiscal Year 2018. Of this amount, $36,880,504 was collected in criminal actions and $2,972,104 was collected in civil actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell IV of the Executive Office for U.S. Attorneys.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
U.S. Attorney’s Office in Kansas Collects $6.5 Million in Civil and Criminal Actions in Fiscal Year 2018Read the Press Release
TOPEKA, KAN. – The U.S. Attorney’s Office for the District of Kansas collected $6.5 million in criminal and civil actions in FY 2018, U.S. Attorney Stephen McAllister said today. Of this amount, $3.9 million was collected in criminal actions and $2.6 million was collected in civil actions.
“Our attorneys and investigators are very successful in recovering money owed to victims and to the government,” McAllister said. “They are one of the reasons that crime really doesn’t pay.”
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Recent examples in the District of Kansas include recovering more than $140,000 from a CPA who made false statements on tax returns, more than $77,000 from a former Kansas bank teller who embezzled the money, more than $185,000 from the owner of a diagnostic testing facility who was convicted of health care fraud and more than $200,000 from a man who was convicted of failing to report income from illegal bookmaking.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
U.S. Attorney’s Office for the Eastern District of Tennessee Collects $ $9,741,070.01 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
KNOXVILLE, Tenn. - U.S. Attorney J. Douglas Overbey announced today that the Eastern District of Tennessee collected $ $9,741,070.01 in criminal and civil actions in Fiscal Year 2018. Of this amount, $7,782,647.37 was collected in criminal actions and $1,958,422.64 was collected in civil actions.
Additionally, the Eastern District of Tennessee worked with other U.S. Attorney’s offices and components of the Department of Justice to collect an additional $42,948,325.81 in cases pursued jointly with these offices. Of this amount, $32,298.67 was collected in criminal actions and $42,916,027.14 was collected in civil actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
U.S. Attorney J. Douglas Overbey praised the hard work of the Assistant U.S. Attorneys and the Monetary Recovery Unit in his office stating, “In addition to protecting the public by prosecuting and locking up criminals, the overall mission of the U.S. Attorney’s Office includes helping to compensate victims to the fullest extent possible. Restitution, fines and assessments collected by our office benefit all victims of crime. Collected restitution is paid directly to the victims of the crimes for whom it was ordered, while collected fines and assessments are paid to the Crime Victims’ Fund to fund state victim compensation and assistance programs.”
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the Department of Education.
Additionally, the U.S. Attorney’s office for the Eastern District of Tennessee, working with partner agencies and divisions, collected $5,539,839.00 in asset forfeiture actions in FY 2018. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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U.S. Attorney’s Office Collects over $10,000,000 in Fiscal Year 2018Read the Press Release
OKLAHOMA CITY – The Western District of Oklahoma collected $10,624,311 in the fiscal year ending Sept. 30, 2018, announced Robert J. Troester of the U.S. Attorney’s Office.
The office secured $7,994,284.09 through collection efforts in criminal and civil cases. Of this amount, $3,062,214.10 was collected in criminal actions and $4,932,069.99 was collected in civil actions. The office also deposited $2,630,027 into the Asset Forfeiture Fund as a result of criminal, civil, and administrative forfeiture proceedings. Total collections, including forfeiture, exceeded the cost of operating the office by more than two million dollars.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in Fiscal Year 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for U.S. Attorneys’ Offices across the nation.
"In addition to keeping communities safe, the U.S. Attorney’s Office prioritizes recovering money for victims of crime and for taxpayers," said Mr. Troester. "I am proud that my team uses the tools Congress has provided to seek to achieve financial justice in criminal and civil litigation involving the United States."
"The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work," said James A. Crowell, IV, Director of the Executive Office for U.S. Attorneys.
Among criminal cases, the U.S. Attorney’s Office collected $100,000 from Christopher Bateman Slater, a Guymon physician who pleaded guilty to distributing the opiate codeine without a medical purpose. The court imposed a $100,000 fine on Dr. Slater, in addition to an eight-month prison term. Among civil cases, the office collected $670,000 from Southwest Orthopaedic Specialists, PLLC, and physicians who owned that company. In July 2018, Southwest Orthopaedic Specialists settled allegations that it submitted false claims to Medicare, Medicaid, and Tricare, which are health-care programs funded in whole or in part by the federal government.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
In the Department of Justice as a whole, the largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the Department of Education.
U.S. Attorney's Office collects nearly $25 million for taxpayers from criminal and civil actionsRead the Press Release
SAVANNAH, GA: U.S. Attorney Bobby L. Christine announced today that the Southern District of Georgia recovered more than $24.5 million in criminal and civil actions in Fiscal Year 2018. The total is nearly four times the $6.25 million appropriated for operation of the Southern District office for 2018.
Of this total amount, $5.2 million was recovered in criminal actions, $14.6 million was recovered in civil actions and $4.7 million was recovered from defendants through the asset forfeiture process.
Included within this total is $9.1 million that was recovered from cases jointly pursued by the Southern District of Georgia, other U.S. Attorney’s Offices and other components of the Department of Justice.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14.8 billion in collections in FY 2018 is nearly seven times the appropriated $2.13 billion budget for the 94 U.S. Attorneys’ offices.
“Our office’s Asset Recovery Unit, led by Assistant U.S. Attorney Xavier A. Cunningham, along with our Affirmative Civil Enforcement Unit, led by Assistant U.S. Attorney J. Thomas Clarkson, have performed outstanding work in recovering restitution for crime victims and providing the legal legwork that substantiates the fines, penalties and forfeitures from criminal and civil defendants,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “This effort emphasizes the importance of holding people and entities financially accountable for their actions, and providing a measure of restorative justice to those harmed by illegal activity.”
Examples of significant collections during Fiscal Year 2018 include:
- In May 2018, in the nation’s largest settlement of its kind involving allegations of drug diversion at a hospital, Effingham Health System agreed to pay $4.1 million to resolve allegations that the company failed to guard against theft and loss of controlled substances;
- In April 2018, the Southern District recovered $245,228 from defendant Brandon Sapp, the convicted leader of a WIC and Food Stamp fraud ring; and,
- In August 2018, the Southern District recovered $82,761 from defendant Michael Brian Anderson, a former Savannah shrimper who was convicted of money laundering and defrauding U.S. Customs and Border Protection (CBP), by filing false claims under the Continued Dumping and Subsidy Offset Act of 2000.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Nationwide, the largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
U.S. Attorney's Office Collects $13,722,965.04 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
St. Louis, MO – U.S. Attorney Jeff Jensen announced today that the Eastern District of Missouri collected $13,722,965.04 in criminal and civil actions in Fiscal Year 2018. Of this amount, $8,191,278.06 was collected in criminal actions and $5,531,686.98 was collected in civil actions.
Additionally, the Eastern District of Missouri worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $11,198,243.98 in cases pursued jointly by these offices. Of this amount, $5,301.98 was collected in criminal actions and $11,192,942.00 was collected in civil actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
Three Men Charged with Defrauding Illinois Company of More Than $1.5 MillionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a grand jury in New Haven has returned a seven-count indictment alleging that JOHN T. FINKLE III, 57, of East Haven, Connecticut; STEVEN C. GOLD, 46, of Pleasant Prairie, Wisconsin, and KENNETH J. PEDROLI, 59, of Stony Brook, New York, operated a scheme that defrauded an Illinois-based company of more than $1.5 million.
The indictment was returned on February 13, and Finkle surrendered to law enforcement this morning. Following his arrest, he appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven, entered a plea of not guilty to the charges, and was released on a $500,000 bond secured by his East Haven residence and a rental property in East Haven owned by his wife. Gold and Pedroli will be arraigned in the near future.
As alleged in the indictment, Finkle and Gold were employed by an Illinois-based supplier of electronic components, identified in the indictment as “Company A.” Finkle was primarily employed in sales for the company and Gold operated the accounting and billing systems for the company. Pedroli purchased electronic components from Company A for a business he operated in Islandia, New York.
The indictment alleges that between approximately February 2015 and December 2018, Finkle, Gold and Pedroli defrauded Company A through a scheme involving purchases that Pedroli made from the company. As part of the scheme, Finkle instructed Pedroli to place his orders and list prices at a fraction of Company A’s published prices. After Finkle submitted Pedroli’s orders to Company A at the discounted prices, the products were shipped from Company A to Pedroli. Finkle instructed Pedroli to pay only a portion of the invoiced price and to make the payments directly to Finkle. Pedroli then wrote checks to Finkle, which Finkle deposited into his personal bank account.
It is further alleged that Finkle instructed Gold to apply fictitious credits to the invoices in order to reduce the amount of money Pedroli owed Company A. Finkle then wrote checks to Gold, which Gold deposited into his personal bank account.
It is alleged that Company A was defrauded of more than $1.5 million, and that Finkle profited more than $500,000, through this scheme.
The indictment charges each defendant with one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years. The indictment also charges Finkle with two counts of wire fraud, Gold with two counts of wire fraud, and Pedroli with two counts of mail fraud. Each of these charges also carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Texas Men Sentenced for Conspiracy to Distribute CocaineRead the Press Release
LONDON, Ky. – Christopher Lee Serrano, 45, of Austin, Texas and Pedro Vasquez Cavazos, 63, of Mercedes, Texas, were sentenced to federal prison Thursday, by United States District Judge Robert E. Wier, for conspiracy to distribute nearly five kilograms of cocaine. Serrano was sentenced to 262 months and Cavazos was sentenced to 120 months.
In February 2018, the Federal Bureau of Investigation seized 4.95 kilograms of cocaine, which Serrano and Cavazos transported from Austin, Texas to London, Kentucky. Serrano and Cavazos had hidden the cocaine in a speaker box under the passenger seat of Serrano’s Chevy truck. Prior to their arrest, the pair assured the buyer they could fulfill bi-weekly deliveries for similar amounts. In November 2018, Serrano and Cavazos entered pleas of guilty, admitting that they orchestrated the delivery of the cocaine to Laurel County, Kentucky for distribution.
Both men had prior federal felony drug trafficking convictions, from the Western District of Texas. Under federal law, Serrano and Cavazos must serve 85 percent of their prison sentences; and upon their release, they will be under the supervision of the United States Probation Office for eight years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; Richard Sanders, Commissioner of the Kentucky State Police; and Darrel Kilburn, Chief of the London Police Department, jointly made the announcement.
The FBI, London Police Department, and Kentucky State Police conducted the investigation. The United States was represented by Assistant United States Attorney Jenna E. Reed.
Syracuse Man Charged with Robbery and MurderRead the Press Release
SYRACUSE, NEW YORK – William D. Wood, Jr., 33, of Syracuse, New York, appeared today on an indictment charging him with the September 15, 2018, robbery of Chili’s Bar & Grill in Dewitt, New York, and the murder of two employees by shooting them to death in the course of that robbery, announced United States Attorney Grant C. Jaquith and John Devito, Special Agent in Charge of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division.
Federal law proscribes murder through the use of a firearm during or in relation to a crime of violence such as a robbery that interferes with commerce. The indictment also provides notice of eight special findings, including commission of the murders in the expectation of the receipt of something of pecuniary value, commission of the murders after substantial planning and premeditation, and the intentional killing and attempt to kill more than one person in a single criminal episode.
The defendant was arraigned today in Syracuse, New York, before United States Magistrate Judge David E. Peebles and detained pending a trial before Senior United States District Court Judge Thomas J. McAvoy.
Under the federal statutes cited in the indictment, the potential maximum penalty for the robbery charged is imprisonment for 20 years and the potential maximum for each of the murders charged is the death penalty. The Attorney General of the United States will decide whether to seek the death penalty based upon the recommendation of the U.S. Attorney for the Northern District of New York and after carefully considering the defendant’s background and the circumstances of the crimes charged in the indictment.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Town of Dewitt Police Department, and is being prosecuted by Assistant U.S. Attorney Lisa Fletcher.
South Florida Securities Lawyer Sentenced to Seven Years’ Imprisonment for Role in Pump-and-Dump Securities Fraud SchemeRead the Press Release
A Boca Raton attorney was sentenced today to 84 months’ imprisonment and ordered to pay restitution of $19.7 million to 2,156 investors, after previously being convicted by a federal jury of 33 counts of conspiracy, securities fraud, wire fraud, and money laundering offenses. This case involved a scheme to fraudulently register public shell companies with the U.S. Securities and Exchange Commission (SEC), issue a class of purported free-trading shares that were secretly controlled, and sell these shares as part of pump-and-dump stock swindles.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
James M. Schneider, 77, a securities lawyer from Boca Raton, Florida, was convicted on December 7, 2018, by a federal jury after a two-week trial in Miami (Case No. 17-20712-CR-FAM(s)). Schneider was convicted of conspiracy to commit securities and wire fraud, in violation of Title 18, United States Code, Section 1349; securities fraud, in violation of Title 18, United States Code, Section 1348; wire fraud, in violation of Title 18, United States Code, Section 1343; conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); and money laundering, in violation of Title 18, United States Code, Section 1957. In addition to the sentence of 84 months’ imprisonment, U.S. District Judge Federico A. Moreno ordered restitution in the amount of $19.7 million to be paid to 2,156 investors and forfeiture of $4.8 million.
According to evidence introduced at trial, from approximately March 2008 through the end of 2013, Schneider participated in a fraudulent “shell factory” scheme, in which the conspirators created approximately 20 shell companies and filed numerous false documents with the SEC. The filings falsely stated that the companies were controlled by a nominee chief executive officer (CEO). The straw CEO would be listed as the owner of the control block of shares but in reality the companies were controlled by the undisclosed principals. The control block of shares listed in the name of the sole officer were deemed restricted and could not be sold to the public. The principals would register an offering of shares with the SEC and put these shares the names of various shareholders for each company to make it appear that these shares were owned by persons unaffiliated with the company. These shares would later be deemed “free trading” and secretly sold to shell buyers. Using false and fraudulent documentation describing the companies’ business purpose and share ownership, the conspirators would then obtain approval to sell the companies’ shares publicly in the open market. Thereafter, the conspirators would sell the companies to shell buyers who would secretly obtain both the control shares and the purported “free trading” shares without disclosure to the SEC or the investing public. These buyers would then use the shares to conduct pump-and-dump stock swindles and other securities manipulation schemes. Evidence at trial showed that the shares of the fake companies were then sold to investors for millions of dollars.
Schneider, according to the evidence introduced at trial, was a Florida attorney who authored false and fraudulent legal opinion letters indicating that shares of the 20 companies that were owned by persons who were not “affiliates,” when in truth and in fact the shares were owned and controlled by the conspirators. Schneider also created false billing records to make it appear that he was performing work for, and taking direction from, the straw CEOs. In reality, he took his direction from his co-conspirators, who sought to keep their names off publicly filed documents. Schneider also performed so-called escrow services for the sale of the shell entities, including the illegal sale of the purported free trading shares, and wired more than $5.6 million in proceeds to bank accounts controlled by the conspirators. Schneider did this, according to evidence introduced at trial, without authorization from the named shareholders or verification that the persons whose names were listed on escrow agreements authorized or approved these transfers.
Eleven other defendants have been convicted in the Southern District of Florida in connection with the Shell Factory Fraud investigation: John Ahearn and Andrew Wilson, Case No. 17-20883-CR-KMW; Yelena Furman, Case No. 17-20713-CR-CMA; David Lubin, Case No. 17-20508-CR-MGC; Sheldon Rose and Ian Kass, Case No. 16-20706-CR-JEM; Steven Sanders and Alvin S. Mirman, Case No. 16-20572-CR-CMA; Daniel McKelvey and Jeffrey Lamson, Case No. 16-20546-CR-RNS; and, Delaney Equity Group LLC, Case No. 18-20336-CR-CMA. Defendant Myron Gushlak has also been charged but his case was transferred to fugitive status in Case No. 17-20713-CR-CMA. These convicted defendants included two attorneys who practices securities law (Lubin and Wilson), a registered securities representative (Kass), a stock transfer agent (Ahearn), a securities broker-dealer (Delaney Equity Group LLC), an accountant (Lamson), and five stock promoters (Sanders, McKelvey, Mirman, Rose, and Furman).
Previously, the SEC filed parallel civil enforcement actions against Schneider and the other criminal defendants charged in the Shell Factory Fraud investigation.
The United States Attorney commended the investigative efforts of the FBI’s Miami Field Office, and also thanked the SEC’s Miami Regional Office for their assistance with the ongoing Shell Factory Fraud investigation. The United States was represented at trial by Assistant U.S. Attorneys Jerrob Duffy and Christopher B. Browne, and Special Assistant U.S. Attorney Jeffrey T. Cook, and forfeiture is being handled by Assistant U.S. Attorney Alison W. Lehr.
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.
Sex Trafficker Sentenced to 15 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man was sentenced today to 15 years in prison for sex trafficking young women and being a felon in possession of a firearm.
According to court documents and evidence presented at trial, Cornell Devore Rhymes, 32, conspired with others, including Justin Robinson and Markus Plummer, who were previously convicted, to force and coerce young women into commercial sex work during the summer of 2017. Over a period of approximately three months, Rhymes and the others recruited young women, including a minor, into commercial sex work. The men advertised the women for sex acts, set their “dates,” and collected and retained the profits. Prior to trial, Rhymes had pleaded guilty to being a felon in possession of a firearm, after law enforcement discovered a gun in his home during the execution of a search warrant.
This matter was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is composed of FBI agents, along with detectives from the Fairfax County Police, Arlington County Police, Prince William County Police, Loudoun County Sheriff’s Office, Leesburg Police, Alexandria City Police, Washington Metropolitan Police, Fauquier County Sheriff’s Office, George Mason University Police, United States Marshal’s Service, and agents of various Office of Inspector Generals. This matter was brought to the task force by the Prince William County Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, and Barry M. Barnard, Chief of Prince William County Police, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorneys Whitney Dougherty Russell and Raizza Ty prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-22. Information about Justin Robinson and Markus Plummer’s cases can be found by searching for Case No. 1:17-cr-310.
San Francisco Man to Face Federal Firearm ChargesRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Michael Sandy Abadilla for possessing illegal and unregistered firearms and equipment, announced United States Attorney David L. Anderson and United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) Special Agent in Charge Rayfield Roundtree. The indictment was filed February 12, 2019, and unsealed today.
According to the indictment, on January 16, 2019, Abadilla, 52, of San Francisco, possessed five full automatic conversion switches. Full automatic conversion switches are mechanical parts designed to convert a firearm from semi-automatic to fully-automatic, and as such constitute “machineguns” as defined by federal law. The indictment also charges that the full automatic conversion switches were not registered to the defendant in the National Firearms Registration and Transfer Record (“NFRTR”). In addition, Abadilla was in possession of two firearm silencers that also were not registered to him in the NFRTR. Abadilla is charged with one count of possession of illegal machineguns, in violation of 18 U.S.C. § 922(o), and two counts of possession of unregistered firearms, in violation of 26 U.S.C. § 5861(d).
An indictment merely alleges that a crime has been committed and Abadilla, like all defendants, is presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the Section 922(o) violation, Abadilla faces a maximum statutory penalty of 10 years in prison and a fine of $250,000. If convicted of either of the Section 5861(d) violations, Abadilla faces a maximum statutory penalty of 10 years in prison and a fine of $10,000, per count.
Abadilla was arrested yesterday and made an initial appearance before U.S. Magistrate Judge Laurel Beeler today. Magistrate Judge Beeler scheduled Abadilla’s next appearance for February 20, 2019, for a detention hearing.
Assistant United States Attorney Nicholas Walsh is prosecuting this case with assistance from Margoth Turcios. This case is the result of an investigation by the ATF.
Robert Edward Howland Sentenced to Serve 167 Months in Federal Prison on Armed Robbery and Firearm ChargesRead the Press Release
GREENEVILLE, Tenn. – On February 13, 2019, Robert Edward Howland, 47, of Bristol, Tennessee, was sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Judge, to serve a total of 167 months in federal prison. Howland was sentenced to 155 months for the 2016 armed robbery of the Big Orange Market in Bristol, Tennessee. He received an additional 12 months in prison, which will run consecutively, for violating the terms of his supervised release from a prior conviction. Upon his release from prison, he will be supervised by U.S. Probation for the remainder of his life.
According to the plea agreement on file with the U.S. District Court, on November 26, 2016, Howland admitted to robbing the Big Orange Market by brandishing a semiautomatic pistol, pointing it at the clerk and putting it against her back. In addition to committing the robbery, he walked the clerk out of the store at gunpoint and attempted to force her inside his truck. A combination of the clerk yelling for help and other customers rushing to her rescue resulted in Howland speeding off alone. After the police located him, Howland refused to stop and led officers on a lengthy four county pursuit from Bluff City, Tennessee, to Jefferson City, Tennessee. When the officers finally stopped him and approached his vehicle, Howland was holding the same firearm he used to rob the store.
At the time of this offense, Howland was on supervised release from a December 2011 conviction in U.S. District Court for the felony offense of failing to register as a sex offender.
Law enforcement agencies participating in the investigation included the Sullivan County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Wayne Taylor represented the United States in court proceedings.
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.
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Rapid City Woman Sentenced for Illegal Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of Possession of a Firearm by a Prohibited Person was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Gabrielle M. Koenig, age 45, was sentenced on February 13, 2019, to 37 months in federal prison, to be followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Koenig was charged on January 23, 2018. The conviction stems from Koenig knowingly being in possession of several firearms, while unlawfully using and distributing methamphetamine.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted and tried the case.
Koenig was remanded to the custody of the U.S. Marshals Service.
Previously Convicted Sex Offender Sentenced to 24 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III today sentenced Gary Keith Pinkowski, Jr., age 33, of Catonsville, Maryland, to 24 years in federal prison, followed by lifetime supervised release, for possession of child pornography, which he obtained using public computers at a library. Pinkowski has prior sex offense convictions in Maryland and Delaware.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Terrence B. Sheridan of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement and other court documents, on October 22, 2017, Pinkowski attempted to produce two images of child pornography. Specifically, Pinkowski went swimming at a recreational facility in Baltimore County. Instead of using the locker room specifically designated for adult males, Pinkowski brought a digital camera into a shower stall in the “Boys” locker room, and waited for 30 minutes until a child, whom the defendant thought was between five and seven years old, entered the shower stall next to him.
Despite knowing that the child was accompanied by his father, Pinkowski admitted that he reached under a partition between the shower stalls and took two photographs of the six-year-old boy, who was showering in that stall. The boy reported Pinkowski’s conduct to his father, who notified the facility. Although he had not seen the person in the stall next to the boy, the father noticed a pair of black and green plaid swim trunks hanging over the shower stall. Pinkowski had already left the facility on his bicycle, but staff members recognized the description of the swim trunks as belonging to Pinkowski and provided his description and contact information to Baltimore County Police officers.
Officers found Pinkowski near the men’s shelter where he lived and recovered a digital camera containing an SD memory card, a second SD memory card, and multiple USB drives. One of the SD cards contained photos of the boy, who was showering in his swim trunks, as well as child pornography. Pinkowski admitted that he used one of the USB drives to access child pornography using the public computers at a library. The USB drive contained a file that ran software that permits anonymous communication on the Internet. Because the library computer would not permit downloads, Pinkowski used his digital camera to take videos and pictures of the computer screen.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, HSI-Baltimore, the Baltimore County Police Department, and the Baltimore County State’s Attorney’s Office for their work in this investigation and thanked Assistant U.S. Attorneys Jeffrey J. Izant and Sandra Wilkinson, who prosecuted the case.
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Phoenix, Arizona Man Sentenced to 32 Months for His Role in an Alabama Phishing ScamRead the Press Release
Montgomery, Alabama- On Wednesday, February 13, 2019, Iosif Florea, 42, of Phoenix, Arizona, was sentenced to 32 months in federal prison for his part in a “phishing” scam that impacted Alabama residents, announced United States Attorney Louis V. Franklin, Sr., Alabama Attorney General Steve Marshall, and FBI Special Agent in Charge James Jewell. Following his two-year and eight month prison sentence, he will be subject to three years of supervised release. He was also ordered to pay $17,786.50 in restitution.
Florea previously pled guilty to charges of bank fraud and aggravated identity theft following his indictment in May of 2018 by a federal grand jury. Phishing scams use email or malicious websites to solicit personal information by posing as a trustworthy organization.
Evidence showed that Florea was involved in a scheme that occurred in March and June of 2015. During that time, text messages were sent to nearly 500,000 people in Alabama. The messages contained a link to a website that claimed to be that of the Alabama State Employees Credit Union (ASECU) and requested the recipients use the link to verify account information. The link actually took the recipients to a fraudulent website where they were prompted to enter sensitive account information, such as their names, debit card numbers, the card’s expiration date, the security code from the back of the card, and their personal identification numbers (PINs). This information was then loaded onto blank cards. During the two-month period, there were videos of Florea in Phoenix, Arizona, Los Angeles, California, and Las Vegas, Nevada, withdrawing money at ATMs using cards with stolen information from approximately 30 different accounts.
“It is important that the public be aware of these types of scams, and immediately report any suspicious account activity to their bank or credit union,” stated United States Attorney Franklin. “When a bank’s fraud department is alerted quickly, they can take actions to limit the losses to their customers and assist law enforcement to identify the thieves. The public should also know that my office will continue to work with our law enforcement partners to protect their identities from these types of schemes.”
“I am pleased that Iosif Florea has been held to account and is being punished for his wrongdoing,” said Attorney General Steve Marshall. “This case is an excellent example of how teamwork among law enforcement agencies is vital to shutting down such scams, and it sends a strong message to cyber criminals who seek to target Alabamians that they will be tracked down and prosecuted. This case also serves as an important reminder that consumers must remain on guard when they receive messages that appear to be from trusted financial institutions. Always communicate directly with any bank or government agency by using verified contact information. Scammers can be very convincing with deceptive solicitations and links to fake web pages. Never respond directly to such texts, emails or phone calls. In this case, the vigilance of consumers and quick action by our investigators and other law enforcement helped to limit the potential for this criminal to inflict greater damage.”
“The criminal element in this country continues to evolve in the ways they divest our citizens of their property and earnings,” SAC Jewell stated. “The FBI pledges our support to our law enforcement partners in this continued fight and will remain committed to assisting in the prosecution of these criminals no matter what their method of theft may be.”
This case was investigated by the Alabama Attorney General’s Office and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S Attorneys Brandon Bates and Denise Simpson.
Pharmacist Who Previously Pleaded Guilty to Federal Drug Distribution Conspiracy Arrested for Murder for Hire, Witness Retaliation, and Selling Drugs While on ReleaseRead the Press Release
Baltimore, Maryland – On February 14, 2019, David Robinson, age 50, of Baltimore, Maryland, was arrested on a criminal complaint charging him with murder for hire, retaliating against a witness, and commission of a crime while on release. Robinson, a licensed pharmacist who owned and operated the Frankford Family Pharmacy, pleaded guilty on October 10, 2018, to a federal drug conspiracy involving the distribution of oxycodone and alprazolam outside the scope of professional practice and not for a legitimate medical purpose. Robinson was scheduled for sentencing on those charges today.
The new charges were announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Acting Commissioner Michael Harrison of the Baltimore Police Department.
“We have zero tolerance for any effort to intimidate or retaliate against witnesses,” said U.S. Attorney Robert K. Hur.
“This investigation and subsequent arrest is a perfect example of how pharmaceutical cases that involve doctors or pharmacists have the potential to be just as violent as a street gang case,” said Supervisory Special Agent Todd C. Edwards, spokesman for Drug Enforcement Administration Baltimore District Office.
According to the affidavit filed in support of the criminal complaint, on October 27, 2018, the Citi-Watch camera system captured a drug transaction, which led to the arrest of an individual, CS-2. A search of CS-2’s vehicle resulted in the recovery of two shoeboxes containing a total of 35 stock pharmacy bottles of the prescription medications Promethazine and Clonidine.
CS-2 agreed to cooperate with law enforcement and advised that David Robinson had provided the drugs found in the car. CS-2 stated that Robinson had provided drugs to CS-2 for the past three years, using prescriptions that Robinson knew were fraudulent. CS-2 reported that after the search warrant was executed at the pharmacy on June 27, 2017, Robinson began providing CS-2 with case lots of boxes of medications in exchange for cash and that no prescription was required. Further, CS-2 reported that six months after the raid, Robinson was still ordering pills from his vendors.
According to the affidavit, after his arrest in 2017, Robinson mentioned the name of a person (“CS-1”) that Robinson believed had cooperated with law enforcement and led to his arrest in the drug conspiracy case, and told CS-2 that, “Jokers got to go.” CS-2 told law enforcement that Robinson requested CS-2 to assist in the murder of CS-1 and gave CS-2 information about CS-1. CS-2 told investigators that he/she did not know of anybody that could kill CS-1, but saw a chance to make some money from Robinson. CS-2 told law enforcement that he/she told Robinson that he/she knew someone who could do the “hit,” and that the fee would be $10,000, with $5,000 as a down payment and $5,000 when CS-1 was killed. According to the affidavit, in approximately late 2017, Robinson provided CS-2 with $5,000, which CS-2 deposited in the bank and used to pay bills. According to CS-2, Robinson regularly questioned CS-2 about the progress, but CS-2 would make excuses and tell Robinson that CS-1 was hard to locate.
The criminal complaint alleges that from December 13, 2018 through February 7, 2019, CS-2 made three controlled purchases of drugs from Robinson, at the direction of law enforcement, using cash provided by DEA agents. CS-2 purchased a total of 118 stock pharmacy bottles of Clonidine, each containing 100 tablets; and 24 stock pharmacy bottles of 50 mg Promethazine tablets, with each bottle containing 100 tablets. Robinson allegedly did not request, nor did CS-2 provide, a prescription for any of the drugs.
During a controlled purchase on January 24, 2019, CS-2 and Robinson allegedly discussed the murder of CS-1. CS-2 told Robinson he/she had found someone to commit the murder, but that person wanted additional money to commit the crime. According to the affidavit, Robinson agreed to pay the person the amount owed. On February 14, 2019, CS-2 called Robinson and told him that the murder was done and the guy would want his money. The complaint alleges that Robinson requested proof that the murder had been committed, and CS-2 showed Robinson several photos that appeared to show CS-1 dead. Robinson allegedly indicated that was the right person and provided CS-2 with additional cash. After the meeting, law enforcement arrested Robinson and CS-2.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Kenneth S. Clark and Samika N. Boyd, who are prosecuting the case.
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Participant in Fraudulent Opioid Prescription Conspiracy SentencedRead the Press Release
PROVIDENCE, RI – A Providence man who admitted to participating in a conspiracy to create and fill fraudulent prescriptions for opioid pills by using stolen medical practitioner identification numbers, unlawfully paying for many of the prescriptions with the use of medical insurance, and soliciting others to participate in the conspiracy, was sentenced today to 48 months in federal prison.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Michael Slonski, 48, to serve 3 years supervised release upon completion of his term of incarceration.
Slonski pled guilty on April 2, 2018, to conspiracy to distribute and possess with the intent to distribute Oxycodone.
Slonski’s sentence is announced by United States Attorney Aaron L. Weisman and Jeffrey Ebersole, Resident Agent in Charge of the United States Food and Drug Administration Office of Criminal Investigations.
At the time of his guilty plea, Slonski admitted to being part of a conspiracy that created fraudulent prescriptions utilizing the identities, Drug Enforcement Administration (DEA) identification numbers, and signatures of medical practitioners without their consent. Prescriptions for varying amounts of Oxycodone pills were written and presented to pharmacies by some members of the conspiracy and others working at the direction of the conspirators.
The scheme often times included the fraudulent use of medical insurance to pay pharmacies for the illicit prescriptions. Most of the Oxycodone pills gained with the use of fraudulent prescriptions were sold to others for distribution.
Slonski admitted that his role in the conspiracy included producing fraudulent Oxycodone prescriptions, passing or causing others to fill the prescriptions at pharmacies, and benefiting personally by selling fraudulently obtained pills.
Robert Rose, 52, of Providence, the acknowledged leader of the conspiracy, was sentenced on October 15, 2018, to 72 months in federal prison. Rose admitted to the Court that as the leader of the conspiracy, he paid for individuals’ identities, health care insurance information, and prescribing medical practitioners’ names and DEA numbers. Rose provided that information to others who participated in the conspiracy, and provided special paper necessary to produce the fraudulent prescriptions.
Rose also admitted that he ran the conspiracy for several months while incarcerated at the Adult Correctional Institution on an unrelated matter.
The case was prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by the United States Food and Drug Administration Office of Criminal Investigations.
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Omaha Man Sentenced for Armed Credit Union RobberyRead the Press Release
United States Attorney Joe Kelly announced that Thomas Woodard, 38, was sentenced today in Omaha, Nebraska, by United States District Judge Robert F. Rossiter, Jr. for the crime of armed bank robbery. Judge Rossiter sentenced Woodard to 100 months’ imprisonment, a five-year term of supervised release, and ordered Woodard to make restitution in the amount of $27,278 to the SAC Credit Union.
On December 7, 2012, Woodard and co-defendant Joseph Lanckriet, robbed the SAC Federal Credit Union located at 219 S 23rd St. in Plattsmouth, NE and took $27,278 in credit union funds. The case went cold but ultimately Woodard and Lanckriet were apprehended in Sioux City, Iowa, in 2016, after they committed a robbery in that city in 2014.
This case was investigated by the Federal Bureau of Investigation, the Plattsmouth Police Department, and the Nebraska State Patrol.
Northern District of California Collects over $113 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
SAN FRANCISCO –U.S. Attorney David L. Anderson announced today that the Northern District of California collected $113,842,340.66 in criminal and civil actions in Fiscal Year 2018. Of this amount, $103,764,722.65 was collected in criminal actions and $2,354,162.58 was collected in civil actions.
Additionally, the Northern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2,102,220,943.25 in cases pursued jointly. Of this amount, $2,354,162.58 was collected in criminal actions and $2,099,866,780.67 was collected in civil actions.
Overall, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The extraordinary work of the people employed in this office can never be quantified in dollars alone,” said U.S. Attorney Anderson. “Still, it is gratifying to know that during this past fiscal year, the employees of this office had a direct hand in retrieving funds in excess of the budget of the 94 United States Attorneys’ Offices combined. I am proud of the work of this office and we will continue to pursue vigorously all financial claims that arise from crime and other violations of federal law.”
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
Newark Man Convicted of Armed Jewelry Heist in Elizabeth, New JerseyRead the Press Release
NEWARK, N.J. – A Newark man was convicted in federal court today for his role in the September 2017 armed robbery of a jewelry exchange located in Elizabeth, New Jersey, U.S. Attorney Craig Carpenito announced.
William Valentin, 43, was found guilty of one count of conspiring to commit Hobbs Act robbery, one count of Hobbs Act robbery, one count of brandishing a firearm during a crime of violence, and one count of conspiring to use a firearm during a crime of violence. Valentin was convicted following a six-day trial before U.S. District Judge Madeline Cox Arleo in Newark federal court.
According to documents filed in this case and the evidence at trial:
On the morning of Sept. 5, 2017, four masked individuals, including Valentin, entered a jewelry exchange located in Elizabeth. Valentin then brandished a firearm at an employee while the other conspirators unloaded the contents of the store’s safes into large bags. Video surveillance showed Valentin and other conspirators entering the mall, approaching the jewelry exchange, and running out with the bags of jewelry. Afterwards, Valentin and his conspirators jumped into a black Audi and drove away.
In January 2018, Valentin was arrested in Holyoke, Massachusetts, with a backpack containing jewelry stolen from the Elizabeth exchange in his possession.
The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, which must be imposed consecutive to any other sentence imposed. The Hobbs Act, Hobbs Act conspiracy, and conspiracy to use a firearm in the commission of a crime of violence charges each carry a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, the Elizabeth Police Department, under the direction of Chief Ronald Simon, and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Michael A. Monahan, with the investigation leading to today’s guilty verdicts. He also thanked the Holyoke Police Department, under the direction of Chief James Neiswanger, for its assistance.
The government is represented by Assistant U.S. Attorneys Lauren E. Repole and Cari Fais of the U.S. Attorney’s Office in Newark.
Nevada U.S. Attorney's Office Collects over $7.2 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
LAS VEGAS, Nev. – United States Attorney Nicholas A. Trutanich announced today that the District of Nevada collected $7,219,564 in criminal and civil actions in Fiscal Year 2018. Of this amount, $4,090,476 was collected in criminal actions and $3,129,088 was collected in civil actions.
The District of Nevada also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $11,949,827 in cases pursued jointly by these offices.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending September 30, 2018. The $14,839,821,650 in collections in fiscal year 2018 is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
“We are fully committed to seeking justice for victims of crime, and we will use all available tools and resources to collect restitution and fines,” said U.S. Attorney Trutanich. “The more than $7.2 million recovered in fiscal year 2018 by our office is a testament to the efforts by dedicated Assistant U.S. Attorneys and staff, especially the office’s Financial Litigation Unit, who collects funds on behalf of victims and the federal treasury. I thank our staff for their persistence and hard work in the successful recovery of civil and criminal funds.”
Major case highlights include:
- Cardiovascular and Thoracic Surgeons of Nevada, Inc. paid $1.5 million to resolve allegations related to its potential liability under the False Claims Act. The Las Vegas medical practice, whose principal physician was Dr. Bashir Chowdhry, billed federal healthcare programs, including Medicare and the U.S. Department of Veterans Affairs, for surgical services not actually provided to its cardiac patients, and also billing for more expensive surgical and evaluation and management services than those actually provided to its patients.
- Concord Treatment Center, d/b/a Desert Hope Treatment Center, was audited by the DEA, which found that a Desert Hope employee had ordered and diverted 1,900 dosage units of Schedule II-IV controlled substances, and that Desert Hope had failed to maintain proper records for 12 Schedule II-IV controlled substances. Desert Hope paid a $250,000 civil penalty, surrendered the DEA registration for its internal pharmacy, and retained a subcontractor to manage its internal pharmacy in the future.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
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Nebraska Man Pleads Guilty to Producing Child PornographyRead the Press Release
A Nebraska man pleaded guilty today to producing child pornography in 2016, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Joseph P. Kelly of the District of Nebraska.
Steven R. Carlson, 38, of Omaha, Nebraska, pleaded guilty to one count of production of child pornography before U.S. District Court Judge Robert F. Rossiter, Jr. of the District of Nebraska. Sentencing is set for May 10, 2019.
According to admissions made in connection with his guilty plea, in May 2016, Carlson filmed himself engaging in forcible, sexual acts with a 13-year-old, nonverbal minor child. A search warrant executed on Carlson’s residence resulted in the discovery of hundreds of images of child pornography involving minors as young as infants and toddlers.
The FBI Cyber Crimes Task Force is investigating this case. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Nebraska Man Pleads Guilty to Producing Child PornographyRead the Press Release
A Nebraska man pleaded guilty today to producing child pornography in 2016, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Joseph P. Kelly of the District of Nebraska.
Steven R. Carlson, 38, of Omaha, Nebraska, pleaded guilty to one count of production of child pornography before U.S. District Court Judge Robert F. Rossiter Jr. of the District of Nebraska. Sentencing is set for May 10, 2019.
According to admissions made in connection with his guilty plea, in May 2016, Carlson filmed himself engaging in forcible, sexual acts with a 13-year-old, nonverbal minor child. A search warrant executed on Carlson’s residence resulted in the discovery of hundreds of images of child pornography involving minors as young as infants and toddlers.
The FBI Cyber Crimes Task Force is investigating this case. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Montana Barronette, Leader of Violent West Baltimore Gang Sentenced to Life in Prison for Federal Racketeering and Drug Conspiracy Charges, Including Murders and Witness IntimidationRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Montana Barronette, a/k/a Tana, and Tanner, age 23, of Baltimore, to life in prison, followed by five years of supervised release, for conspiring to participate in a violent racketeering enterprise known as Trained To Go (TTG). The racketeering conspiracy included eight murders—six committed by Barronette—as well as drug trafficking; and witness intimidation. Barronette and his co-defendants were also convicted of conspiracy to distribute and possess with intent to distribute heroin, marijuana, and cocaine. A federal jury convicted Barronette and seven co-defendants on October 31, 2018.
The sentencing was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Commissioner Michael Harrison of the Baltimore Police Department; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Anne Arundel County Police Chief Tim Altomare; and Baltimore City State’s Attorney Marilyn J. Mosby.
“Montana Barronette led one of the most violent gangs operating in Baltimore City and personally participated in at least six murders,” said U.S. Attorney Robert K. Hur. “He and his fellow gang members terrorized the Sandtown neighborhood in order to profit from the drug trade. As a result of today’s sentence, justice has been served for his victims and their families. Federal, state and local law enforcement will continue to work together to remove armed, violent criminals from our neighborhoods and bring them to justice in the federal system, which has no parole—ever.”
“From 2010 to 2017, Montana Barronette was known as the number one trigger puller in Baltimore and the leader of the vicious Trained To Go gang that terrorized the streets of West Baltimore, committing murders – including six by Barronette himself – shootings, armed robberies, drug dealing, and witness intimidation,” said Assistant Attorney General Benczkowski. “Today’s sentence brings Barronette’s murderous career to an end – and brings some measure of justice to his many victims. I commend our prosecutors, as well as our federal, state, and local law enforcement partners, for their tireless pursuit of justice against this violent gang.”
“This case represents the epitome of law enforcement agencies working together to target and dismantle violent street gangs that threaten the safety and stability of our neighborhoods,” said FBI Baltimore Special Agent in Charge Gordon B. Johnson. “The citizens of Baltimore City and Maryland have the FBI’s commitment that we will work with our local, state and federal partners to attack these dealers and remove violent criminals from their neighborhoods.”
According to the evidence presented at their 24-day trial, Barronette and his co-defendants are all members of TTG, a criminal organization that operated in the Sandtown neighborhood of West Baltimore, whose members engaged in drug distribution and acts of violence including murder, armed robbery, and witness intimidation. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.
The evidence at trial showed that Barronette and co-defendant Terrell Sivells served as the leadership for TTG. Members and associates of TTG sold heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. In addition to coordinating the distribution of heroin, Barronette also coordinated with other gangs, including the “Young Go Getters,” to conduct contract killings.
Specifically, the evidence proved that between May 20, 2010 and January 9, 2017, Barronette, his co-defendants, and other members of TTG committed acts of violence, including eight murders, shootings, armed robbery, and witness intimidation. The violent acts were intended to further the gang’s activities, protect the gang’s drug territory, and maintain and increase a member’s position within the organization. Murders were committed in retaliation for individuals robbing TTG members of drugs and drug proceeds, or while TTG members robbed others of their drugs and drug proceeds, as well as in murder-for-hire schemes. Further, the defendants engaged in witness intimidation through violence or threats of violence, to prevent individuals from cooperating with law enforcement.
The following defendants, all of Baltimore, were also convicted after trial and face a maximum sentence of life in prison on the racketeering and drug conspiracies:
Terrell Sivells, a/k/a Rell, age 27; John Harrison, a/k/a Binkie, age 28; Taurus Tillman, a/k/a Tash, age 29; Linton Broughton, a/k/a Marty, age 25; Dennis Pulley, a/k/a Denmo, age 31; Brandon Wilson, a/k/a Ali, age 24; and
Timothy Floyd, a/k/a Tim Rod, age 28.Pulley and Wilson each also face a maximum sentence of 10 years in prison for being felons in possession of a firearm; and a mandatory minimum of five years, consecutive to any other sentence imposed, and up to life in prison for possession of a firearm in furtherance of a drug trafficking crime. Tillman and Sivells also face up to 20 years in prison for distribution and possession with intent to distribute heroin. The defendants remain detained.
Three other TTG members, all of Baltimore, previously pleaded guilty. Brandon Bazemore, a/k/a Man Man, age 25, pleaded guilty to the racketeering conspiracy, including three murders and an attempted murder, as well as to the drug conspiracy and was sentenced to 25 years in federal prison. Co-defendants Hisaun Chatman, age 31, and James Woodfolk, age 20, pleaded guilty to the drug conspiracy and were each sentenced to five years in prison, to be served concurrent to the state sentence each is currently serving.
Co-defendant Roger Taylor, of Baltimore, is still a fugitive. Anyone who may have information on the whereabouts of Roger Taylor is asked to contact the FBI-Baltimore Field office at (410) 265-8080.
The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County, and Anne Arundel County Police Departments. FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore. The vision of the program is to use federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski commended the FBI, the Baltimore Police Department, the ATF, the DEA, the Anne Arundel County Police Department, and the Office of the State’s Attorney for Baltimore City, for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Daniel C. Gardner, Christopher J. Romano, and Special Assistant U.S. Attorney John C. Hanley formerly of the Justice Department’s Organized Crime and Gang Section, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Michigan Patient Recruiter Pleads Guilty in $1.2 Million Kickback SchemeRead the Press Release
A Michigan woman pleaded guilty today for her role as a patient recruiter in a scheme involving approximately $1.2 million in fraudulent Medicare claims for home health care procured through the payment of kickbacks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy Slater of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Ghalia Savaya, 50, of Sterling Heights, Michigan, pleaded guilty to one count of conspiracy to receive kickbacks in connection with a federal health care program before U.S. District Judge David Lawson of the Eastern District of Michigan. Sentencing has been scheduled for May 30 before Judge Lawson.
Savaya was indicted in June 2018. As part of her guilty plea, Savaya admitted that, from approximately April 2015 to approximately Nov. 2017, she received illegal kickbacks in exchange for referring Medicare beneficiaries to Franklin Health Care LLC of Troy, Michigan, which billed Medicare for claims procured through these illegal kickbacks. Medicare paid over $1.25 million for claims related to beneficiaries referred by Savaya, which included claims for beneficiaries who were not eligible to receive home health care services.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Trial Attorneys Howard Locker and Steven Scott of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Mexican Man Sentenced to Nearly Three Years in Prison for Illegally Reentering the United StatesRead the Press Release
A Mexican man who illegally returned to the United States after being deported four times was sentenced yesterday to 33 months in federal prison.
Jorge Gonzalez-Juarez, age 33, a citizen of Mexico illegally present in the United States and residing in Eagle Grove, Iowa, received the prison term after a September 26, 2018 guilty plea to one count of illegal reentry into the United States after two prior felony convictions. Gonzalez-Juarez also received a prison term for violating the conditions of supervised release imposed on a conviction in the Western District of Texas in 2015 for illegal reentry.
At the guilty plea, Gonzalez-Juarez admitted he had previously been deported from the United States on August 27, 2008, October 14, 2009, December 2, 2014, and October 18, 2016, and illegally reentered the United States in 2016 without the permission of the United States government.
This was Gonzalez-Juarez’s third felony conviction for illegal reentry into the United States. Gonzalez-Juarez was also convicted of illegal entry into the United States in 2014 in the Northern District of Iowa and in 2015 in the Western District of Texas. Gonzalez-Juarez has also been convicted in Iowa of operating while intoxicated (OWI) in 2006, possession of methamphetamine under an alias name in 2007, criminal mischief in 2008, and fifth degree theft under an alias name in 2009. Gonzalez-Juarez most recently came to the attention of immigration officials following his arrest in July 2018 in Wright County, Iowa, for failure to appear on an OWI charge from 2014 where he was charged under an alias name. Gonzalez-Juarez was convicted of that state OWI offense in August 2018.
Gonzalez-Juarez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gonzalez-Juarez was sentenced to 21 months’ imprisonment on the illegal reentry conviction and 12 months’ imprisonment for violating the term of supervised release imposed on the conviction in the Western District of Texas. He must also serve a three-year term of supervised release after the prison term on the new conviction for illegal reentry. There is no parole in the federal system.
Gonzalez-Juarez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3037-CJW.
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Massachusetts Man Sentenced to 46 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Victor Soto, 38, of Dorchester, Massachusetts, was sentenced to serve 46 months in prison for fentanyl trafficking, announced United States Attorney Scott W. Murray.
According to court documents and statements made in court, on May 30, 2018, Manchester police officers acquired reliable information that the defendant would deliver 300 to 400 grams of fentanyl to Manchester later that day. The Manchester police officers shared this information with the New Hampshire State Police. That evening, the New Hampshire State Police located defendant’s black Acura SUV driving north on I-93. The defendant was driving alone. The police followed the defendant to route 293 and then onto South Willow St. in Manchester, where they stopped him. During a subsequent consent search of his vehicle, officer found approximately 394 grams of fentanyl in the trunk.
Soto previously pleaded guilty to possession of fentanyl with intent to distribute on November 8, 2018.
“Fentanyl distribution continues to damage the fabric of the Granite State,” said U.S. Attorney Murray. “As this case demonstrates, members of the law enforcement community are working closely each day to stop the flow of opioids into our state and to protect our citizens. I am grateful for the efforts of the investigators in this case. Their work prevented a substantial quantity of this deadly drug from being sold in New Hampshire.”
“We’re very gratified with the sentence that was handed down in this case today,” said Peter C. Fitzhugh, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “Together with the critical help of our local and federal partners in the Organized Crime Drug Enforcement Task Force (OCDETF) investigations like this one, we are making real progress in combatting the impacts of the devastating opioid and fentanyl epidemic that has ravaged the lives of so many communities throughout the region.”
This matter was investigated by the Manchester Police Department, New Hampshire State Police, and U.S. Immigration and Customs Enforcement's Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney John Davis.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Manhattan Man Pleads Guilty to 2018 Murder of 17-Year-OldRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that GARY TURNER pled guilty this afternoon in Manhattan federal court to the murder of Samuel Ozuna, 17, outside the George Washington Carver Houses in New York, New York on April 24, 2018. United States District Judge Jesse M. Furman presided over the defendant’s guilty plea today.
U.S. Attorney Geoffrey S. Berman said: “Last April, Gary Turner murdered 17-year-old Samuel Ozuna. Today, Turner admitted in open court to committing that terrible act of violence. We will continue our daily work with the NYPD to keep the streets safe and vigorously to investigate and prosecute those who bring murder and mayhem to our communities.”
As alleged in the Indictment and statements made in open court:
On April 24, 2018, GARY TURNER shot and killed Samuel Ozuna in the vicinity of 60 East 104th Street in Manhattan. TURNER committed this killing in order to maintain his position in a violent gang that was operating in the residential neighborhood surrounding the George Washington Carver Houses.
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TURNER, 24, of Manhattan, pled guilty to using a firearm to commit murder in aid of racketeering, which carries a maximum sentence of death or life in prison, and a mandatory minimum term of five years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the New York City Police Department.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Lauren Schorr and Jacob Warren are in charge of the prosecution.
Man Sentenced for Attempted Robbery and Possessing a FirearmRead the Press Release
RICHMOND, Va. – A previously convicted felon was sentenced today to nearly six years in prison for attempted robbery and being a felon in possession of a firearm.
According to court documents, Revardo Darnell White, 59, of Richmond, walked into the back office at Nations Motors Auto Lot in Richmond while wearing a mask and brandishing a loaded firearm and demanded money from his victims. When White pointed the firearm directly at one of the victims, the victim offered cash from his own wallet. White tried to charge the weapon and a bullet fell or was ejected from the weapon onto the floor. White left without taking any cash from the victim or the business.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson, Jr. Assistant U.S. Attorney Janet Jin Ah Lee prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-61.
Man Sentenced After Being Caught with Child Pornography in Moore CountyRead the Press Release
GREENSBORO, N.C. – A man who pleaded guilty to receipt of child pornography was sentenced today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
KEVIN SCOTT SMITH, 40, of Lumberton, North Carolina, pleaded guilty on August 10, 2018, to one count of receipt of child pornography. He was sentenced by United States District Judge William L. Osteen, Jr. to 72 months of imprisonment followed by 10 years of supervised release.
SMITH first came to the attention of investigators with Moore County Sheriff’s Office as the result of a National Center for Missing and Exploited Children (NCMEC) CyberTipline report made by a cloud storage service provider. NCMEC’s CyberTipline is the nation’s centralized reporting system for online sexual exploitation of children. As a member of the North Carolina Internet Crimes Against Children (ICAC) Task Force, the Moore County Sheriff’s Office receives and investigates CyberTipline reports. In March 2018, detectives with the Moore County Sheriff’s Office executed a search warrant on a residence in Pinebluff, North Carolina where SMITH had been living and placed him under arrest.
“This case exemplifies how excellent federal, state, and local law enforcement coordination can protect our children from exploitation. Thank you to the Moore County Sheriff’s Office for participating in the Internet Crimes Against Children Task Force,” said U.S. Attorney Martin.
This case was prosecuted by Assistant United States Attorney Eric L. Iverson. It was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Long Island Man Sentenced to 16 Years’ Imprisonment for Distributing Heroin That Caused Death of One College Student and Non-Fatal Overdose of AnotherRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Richard Jacobellis was sentenced by United States District Judge Joanna Seybert to an agreed upon 16 years of imprisonment, to be followed by three years’ supervised release, for distributing heroin. When Jacobellis pleaded guilty in June 2018, he admitted that heroin he distributed caused the death of 20-year-old Nicholas Weber in 2016 and serious bodily injury to another in 2015.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the sentence.
“With today’s sentence, Jacobellis will serve a significant jail term for callously pushing deadly heroin that resulted in the death of one young man and nearly killed another, but for the heroic efforts of Suffolk County Police Officers,” stated United States Attorney Donoghue. “We hope the victims’ families can find some solace in this result and in the knowledge that this Office will continue working tirelessly to hold accountable those who contribute to the opioid epidemic on Long Island and elsewhere in the district.” Mr. Donoghue thanked the Suffolk County Police Department for its assistance on the case.
“The defendant’s drugs killed a young man who had a whole life in front of him,” stated DEA Special Agent-in-Charge Donovan. “We cannot console the Weber family enough, but we can continue to investigate and arrest drug traffickers like Jacobellis.”
Jacobellis, a narcotics dealer since 2012, sold heroin to an individual on or about March 8, 2015. The individual, then 18-years-old, used the heroin and overdosed. Suffolk County Police Officers administered Narcan to the individual, who later recovered from a coma. On May 16, 2016, Jacobellis sold $100 worth of heroin to Weber, then 20-years-old, causing his death. Weber was a graduate of Kings Park High School where he was a champion wrestler in his weight class and, at the time of his death, was a student at Suffolk County Community College.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Christopher C. Caffarone is in charge of the prosecution.
The Defendant:
RICHARD JACOBELLIS
Age: 25
Ridge, New YorkE.D.N.Y. Docket No. 17-CR-52 (JS)
Lockport Man Sentenced for Attempting to Retrieve Cocaine Mailed from Puerto Rico in an Oatmeal ContainerRead 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 Juan M. Serrano Acevedo, also known as Juan Acevedo-Serrano, 36, of Lockport, NY, who was convicted of possession with intent to distribute at least 500 grams of cocaine, was sentenced to serve 30 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that in late October of 2015, the U.S. Postal Inspection Service intercepted a package shipped from Puerto Rico to an address in Lockport. During the execution of a search warrant on the package, law enforcement officers discovered two pounds of cocaine hidden inside an oatmeal canister. At that time, the USPIS removed the cocaine from the package.
On December 30, 2015, Serrano Acevedo went to the Lockport Post Office to sign for and accept the package addressed to him. After exiting the post office, the defendant was arrested. Following the arrest, Serrano Acevedo admitted that he ordered the cocaine, that he had previously received a package that contained cocaine, and that he sold cocaine.
Today’s sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Division, and the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin.
Lenore Man Indicted for Felon in Possession of a FirearmRead the Press Release
COEUR D’ALENE – Manuel Villalobos, 42, of Lenore, Idaho, was indicted Wednesday by a federal grand jury sitting in Boise on one count of felon in possession of a firearm, U.S. Attorney Bart M. Davis announced. Villalobos made his initial appearance yesterday morning and pleaded not guilty. Trial is set for April 8, 2019, before Chief U.S. District Judge David C. Nye at the federal courthouse in Coeur d’Alene.
The indictment alleges that on or about February 7, 2019, Villalobos possessed a Zastava, Model O-PAP M70, 7.62x39mm caliber rifle after previously being convicted of a felony.
The charge of felon in possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
This case is being investigated by the Federal Bureau of Investigation and the Nez Perce Police Department.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Leader of Violent West Baltimore Gang Sentenced to Life in Prison for Federal Racketeering and Drug Conspiracy Charges, Including Murders and Witness IntimidationRead the Press Release
A Baltimore, Maryland man was sentenced today to life in prison for conspiring to participate in a violent racketeering enterprise known as Trained To Go (TTG). The racketeering conspiracy included eight murders, drug trafficking, and witness intimidation.
The sentencing was announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Robert K. Hur for the District of Maryland; Special Agent in Charge Gordon B. Johnson of the FBI Baltimore Field Office; Acting Commissioner Michael Harrison of the Baltimore Police Department; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Don A. Hibbert of the U.S. Drug Enforcement Administration (DEA) Baltimore District Office; Anne Arundel County Police Chief Tim Altomare and Baltimore City State’s Attorney Marilyn J. Mosby.
Montana Barronette, aka Tana, and Tanner, 23, was sentenced by U.S. District Judge Catherine C. Blake for the District of Maryland to serve life in prison, followed by five years of supervised release. The racketeering conspiracy included eight murders – six committed by Barronette – as well as drug trafficking and witness intimidation. Barronette and his co-defendants were also convicted of conspiracy to distribute and possess with intent to distribute heroin, marijuana, and cocaine. A federal jury convicted Barronette and seven co-defendants on Oct. 31, 2018.
“From 2010 to 2017, Montana Barronette was known as the number one trigger puller in Baltimore and the leader of the vicious Trained To Go gang that terrorized the streets of West Baltimore, committing murders – including six by Barronette himself – shootings, armed robberies, drug dealing, and witness intimidation,” said Assistant Attorney General Benczkowski. “Today’s sentence brings Barronette’s murderous career to an end – and brings some measure of justice to his many victims. I commend our prosecutors, as well as our federal, state, and local law enforcement partners, for their tireless pursuit of justice against this violent gang.”
“Montana Barronette was the leader of one of the most violent gangs operating in Baltimore City and personally participated in at least six murders,” said U.S. Attorney Hur. “As a result of today’s sentence justice has been served for his victims and their families. Federal, state and local law enforcement will continue to work together to remove armed, violent criminals from our neighborhoods and bring them to justice in the federal system, which has no parole—ever.”
“This case represents the epitome of law enforcement agencies working together to target and dismantle violent street gangs that threaten the safety and stability of our neighborhoods,” said FBI Baltimore Special Agent in Charge Johnson. “The citizens of Baltimore City and Maryland have the FBI’s commitment that we will work with our local, state and federal partners to attack these dealers and remove violent criminals from their neighborhoods.”
According to the evidence presented at their 24-day trial, Barronette and his co-defendants are all members of TTG, a criminal organization which operated in the Sandtown neighborhood of West Baltimore, whose members engaged in drug distribution and acts of violence including murder, armed robbery, and witness intimidation. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.
The evidence at trial showed that Barronette and co-defendant Terrell Sivells served as the leadership for TTG. Members and associates of TTG sold heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. In addition to coordinating the distribution of heroin, Barronette also coordinated with a criminal group known as the “Young Go Getters,” and others to engage in murder-for-hire schemes on behalf of TTG.
Specifically, the evidence proved that between May 20, 2010 and Jan. 9, 2017, Barronette, his co-defendants, and other members of TTG committed acts of violence, including nine murders, shootings, armed robbery, and witness intimidation. The violent acts were intended to further the gang’s activities, protect the gang’s drug territory, and maintain and increase a member’s position within the organization. Murders were committed in retaliation for individuals robbing TTG members of drugs and drug proceeds, or while TTG members robbed others of their drugs and drug proceeds, as well as in murder-for-hire schemes. Further, the defendants engaged in witness intimidation through violence or threats of violence, to prevent individuals from cooperating with law enforcement.
The following defendants, all of Baltimore, were also convicted after trial and face a maximum sentence of life in prison on the racketeering and drug conspiracies:
Terrell Sivells, aka Rell, 27;
John Harrison, aka Binkie, 28;
Taurus Tillman, aka Tash, 29;
Linton Broughton, aka Marty, 25;
Dennis Pulley, aka Denmo, 31;
Brandon Wilson, aka Ali, 24; and
Timothy Floyd, aka Tim Rod, age 28.
Pulley and Wilson each also face a maximum sentence of 10 years in prison for being felons in possession of a firearm; and a mandatory minimum of five years in prison, consecutive to any other sentence imposed, and up to life in prison for possession of a firearm in furtherance of a drug trafficking crime. Tillman and Sivells also face up to 20 years in prison for distribution and possession with intent to distribute heroin. The defendants remain detained.
Three other TTG members, all of Baltimore, previously pleaded guilty. Brandon Bazemore, aka Man Man, 25, pleaded guilty to the racketeering conspiracy, including three murders and an attempted murder, as well as to the drug conspiracy and was sentenced to 25 years in federal prison. Co-defendants Hisaun Chatman, 31, and James Woodfolk, 20, pleaded guilty to the drug conspiracy and were each sentenced to five years in prison, to be served concurrent to the state sentence each is currently serving.
Co-defendant Roger Taylor, of Baltimore, is still a fugitive. Anyone who may have information on the whereabouts of Roger Taylor is asked to contact the FBI Baltimore Field office at (410) 265-8080.
The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County, and Anne Arundel County Police Departments. FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore. The vision of the program is to use federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The Organized Crime Drug Enforcement Task Force investigation was conducted by the FBI, Baltimore Police Department, ATF, DEA, Anne Arundel County Police Department and the Office of the State’s Attorney for Baltimore City. The case was prosecuted by Special Assistant U.S. Attorney John C. Hanley formerly of the Justice Department’s Organized Crime and Gang Section and Assistant U.S. Attorneys Daniel C. Gardner and Christopher J. Romano of the District of Maryland.
Laurinburg Man Sentenced to 180 Months in Prison for Firearms and Drug ChargesRead the Press Release
GREENSBORO, N.C. – A Laurinburg man who sold firearms and cocaine was sentenced to federal prison today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
VONERIC LAQUANE PRIMUS pleaded guilty on September 5, 2018, to six counts of possession of a firearm by a previously convicted felon, four counts of distribution of cocaine base (“crack”), and one count of possessing a firearm during and in relation to a drug trafficking crime. PRIMUS was sentenced by United States District Judge N. Carlton Tilley Jr. to 180 months of imprisonment, followed by 5 years of supervised release.
On six occasions beginning on May 2, 2018, and ending on June 6, 2018, PRIMUS sold firearms and crack cocaine to a confidential informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives. PRIMUS sold a total of seven handguns and approximately 252 grams of crack cocaine during that period, with all of those sales occurring in Scotland County, North Carolina. PRIMUS had previously been convicted of state felonies for discharging a weapon into occupied property, possession of a firearm by a felon, and possession of a Schedule II controlled substance.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Laurinburg Police Department, and prosecuted by Assistant United States Attorney Anand P. Ramaswamy for the Middle District of North Carolina.
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Jury Convicts Two KCK Men of Conspiracy, Kidnapping, Carjacking, Robbery, Drug Trafficking, and Illegal Firearm PossessionRead the Press Release
KANSAS CITY, Mo. – Two Kansas City, Kan., men have been convicted at trial by a federal jury of 17 counts contained in a Dec. 13, 2016, federal indictment.
Jamerl M. Wortham, 33, and Anthony B. Williams, 36, were each found guilty on Thursday, Feb. 14, 2019, of one count of conspiracy to commit kidnapping, three counts of kidnapping, one count of carjacking, one count of conspiracy to commit Hobbs Act robbery, one count of attempted Hobbs Act robbery, one count of distribution of phencyclidine (PCP), six counts of possession of a short-barreled shotgun in furtherance of a crime of violence or drug trafficking crime, one count of being felons in possession of a firearm, one count of possession of an unregistered short-barreled shotgun, and one count of possession of a firearm with an obliterated serial number.
During the early morning hours of April 9, 2016, the defendants, along with another man, stole a Jaguar vehicle in Kansas City, Kansas, then set off to Kansas City, Missouri, with a plan to rob people at ATM machines. While driving around the Westport entertainment district, at approximately 1:30 a.m., the men came across M.M., a woman who was waiting to be picked up by an Uber car. One of the defendants stepped out of the stolen Jaguar, put his arm around M.M., and corralled her into the vehicle.
From there, the defendants proceeded north toward a set of ATMs located in the River Market neighborhood of Kansas City, Missouri. There, they waited until a red Toyota Camry pulled up to use the ATM at approximately 2:00 a.m. The defendants drove up behind the Camry where two women, T.J. and Y.C., were attempting to deposit money into the ATM. One of the defendants and another man approached the Camry, pointed a loaded sawed-off shotgun at the driver and passenger, demanded money, then forced them in the backseat of the Camry. The two men then got in the driver and passenger seats of the vehicle and sped away towards Kansas City, Kansas, with the stolen Jaguar containing M.M. following close behind.
Once in Kansas City, Kansas, the defendants forced all of the victims into the Camry. From there, the defendants took the victims to another ATM in Kansas City, Kansas, and told them to withdraw as much money as they could from their bank accounts. After leaving the ATM, the defendants forced M.M. and Y.C. to smoke phencyclidine (PCP), while they drove for hours around the Kansas City metro area. During the entirety of this time, the victims were consistently threatened with death and bodily harm while the defendants pointed the sawed-off shotgun in the victims’ direction. Williams also indicated he was armed with a handgun during this time.
At around 5:00 a.m. the defendants split the victims up into two separate cars – with Wortham in the stolen Jaguar with T.J., and Williams in the stolen Camry with M.M. and Y.C. While they caravanned through Kansas City, Kansas, police officers recognized the stolen Jaguar and engaged it in pursuit. The Jaguar fled at a high rate of speed, lost control, then crashed with T.J. in the passenger seat of the vehicle. After the crash, Wortham fled from the vehicle on foot but was apprehended shortly after and placed under arrest. T.J. was unhurt in the crash. Discovered inside of the vehicle was a loaded Coast to Coast, Master Mag, Model CC660, 20-gauge shotgun that had approximately 12-inches of the barrel sawed off, along with the shotgun stock shortened.
In the stolen Camry, Williams and another man drove M.M. and Y.C. throughout the Kansas City metro area in search of drugs and a house to use. At approximately 8:00 a.m., the other man was dropped off at an unknown location. With only Williams in the vehicle, M.M. found an opportunity to jump out of the Camry at a stop sign, run into a convenience store, and call the police. Soon after, Y.C. also attempted to escape the vehicle, but had to fight Williams to get out of his grasp. Once out of his grasp, Y.C. ran down a residential street, with Williams chasing behind. She used the panic button on her key fob to set off her car alarm, which stopped Williams from pursuing. Y.C. ran for at least three blocks, found a good Samaritan, then called the police.
Investigation of these crimes, led by the Federal Bureau of Investigation, and the Kansas City, Missouri, Police Department involved numerous witness interviews, review of surveillance video, and analysis of forensic evidence.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for less than two hours on Thursday, February 14, 2019, before returning the guilty verdicts to U.S. District Judge Brian Wimes, ending a trial that began Monday afternoon, February 11, 2019.
Under federal statutes, Wortham is subject to a mandatory minimum sentence of 60 years in federal prison without parole, up to a sentence of life in federal prison without parole. Williams is subject to a mandatory minimum sentence of life in federal prison without parole based on prior convictions.
The minimum and maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of each defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Jeffrey Q. McCarther and Alison D. Dunning. It was investigated by the Federal Bureau of Investigation, the Kansas City, Missouri, Police Department, the Kansas City, Kansas, Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Judge sentences Browning man to prison for sex abuse of minorRead the Press Release
GREAT FALLS—A Browning man who admitted providing a minor methamphetamine in exchange for sexual favors was sentenced on Feb. 14 to 51 months in prison and six years of supervised release, U.S. Attorney Kurt Alme said.
Richard “Bitsy” Smith, 37, pleaded guilty in November to sexual abuse of a minor and distribution of a controlled substance to a person under 21.
U.S. District Judge Brian M. Morris presided.
Prosecutors said an FBI investigation in 2017 into reports of individuals on the Blackfeet Indian Reservation providing meth to minors in exchange for sexual activity led to Smith and the victim. Search warrants served on Facebook accounts showed Smith and the victim were engaged in a sexual and drug relationship. The victim told investigators that Smith had provided her meth and that they had sex on multiple occasions. Smith admitted to investigators in August 2018 that he had been dealing meth for about two years to support his addiction.
Assistant U.S. Attorney Jeffrey Starnes prosecuted the case, which was investigated by the FBI.
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Jackson Man Sentenced to Five Years under Project EJECT for Illegally Possessing a Firearm in Relation to a Drug Trafficking CrimeRead the Press Release
Jackson, Miss. – Derrick Deondrey Minor, 42, of Jackson, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to five years in federal prison, followed by five years of supervised release, for possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Minor was also ordered to pay a $1,500 fine.
On December 8, 2017, officers with the Jackson Police Department initiated a traffic stop which led to Minor’s arrest for possession of a loaded .40 caliber Glock, scales, crack cocaine, methamphetamine, and powder cocaine. Minor was indicted by a federal grand jury on August 7, 2018, and pled guilty before Judge Jordan on November 7, 2018.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jackson Police Department. It was prosecuted by Assistant United States Attorney Kimberly T. Purdie.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges and indictments handed down by the Grand Jury were unsealed. Indictments are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 12 was:
NICHOLAS TYLER SMITH, 24, of Livingston, on charges of receipt of a firearm while under information and false statement in firearms acquisition. Smith was detained. If convicted of the most serious crime, Smith faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-06.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 13 was:
DUSTIN CHARLES GOUDREAUX, 29, of Lame Deer, on charges of assault resulting in serious bodily injury on the Northern Cheyenne Indian Reservation. Goudreaux was detained. If convicted of the most serious crime, Goudreaux faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the FBI. Pacer case reference. 19-09.
Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch on Feb. 12 was:
JUSTIN MICHAEL ALLEN, 33, of Los Angeles, CA, on a criminal complaint charging him with felon in possession of a firearm. Allen waived a preliminary hearing and is detained. If convicted of the most serious crime, Allen faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missoula High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-17.
Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch on Feb. 13 was:
DEREK ALAN DEMBOWSKI, 41, of Thompson Falls, on a criminal complaint charging him with felon in possession of a firearm, possession of a firearm in furtherance of a drug trafficking crime and distribution of methamphetamine. He is detained. If convicted of the most serious crime, Dembowski faces a minimum mandatory five years to life, a $250,000 fine and five years of supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-15.
Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch on Feb. 14 were:
JENNIFER JILL DANNA, 46, and PRZEMEK ROGALSKI, 40, both of California, on a criminal complaint charging them with conspiracy to distribute methamphetamine. Both are detained. Judge Lynch found there was probable cause to proceed and the case will be presented to a grand jury. If convicted of the most serious crime, Danna and Rogalski face a minimum mandatory 10 years to life in prison, a $10 million fine and a minimum five years of supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missoula High Intensity Drug Trafficking Area Task Force and the Drug Enforcement Administration. Pacer case reference. 19-18.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Feb. 14 was:
DOUGLAS JOSEPH DAYRIDER, 38, of Cut Bank, on charges of failure to register as a sex offender on the Blackfeet Reservation. He was detained. If convicted of the most serious crime, Dayrider faces a maximum 10 years in prison, a $250,000 fine and five years of supervised release. The case was investigated by the U.S. Marshals Service. Pacer case reference. 19-05.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Husband Sentenced on Federal Charges—Wife to be Sentenced Later in MarchRead the Press Release
Abingdon, VIRGINIA – A St. Paul, Virginia man, who illegally possessed more than a dozen firearms and thousands of rounds of ammunition, was sentenced yesterday to 71 months in federal prison, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark R. Herring announced.
Patrick Steven Hyde, 40, previously pleaded guilty to one count of being a convicted felon illegally in possession of a firearm. Crystal Dione Hyde, 35, Patrick’s wife, who previously pleaded guilty to one count of lying to a federal agent in order to keep her husband out of trouble, will be sentenced on a date to be scheduled in March 2019.
“Although the Second Amendment strongly protects an individual’s right to bear arms, it does not allow convicted felons, and other prohibited persons, to possess firearms,” U.S. Attorney Cullen stated today. “We will aggressively investigate and prosecute convicted felons who possess firearms and those who enable them to do so.”
According to evidence presented at previous hearings by Virginia Assistant Attorney General and Special Assistant United States Attorney Suzanne Kerney-Quillen, on December 17, 2015, agents with the Drug Enforcement Administration [DEA], the Bureau of Alcohol, Tobacco, Firearms and Explosives [ATF], Virginia State Police, Russell County Sheriff’s Office, and Wise County Sheriff’s Office conducted a search of the mobile home and outbuilding in St. Paul, Virginia where Steven and Crystal Hyde resided. During that search, investigators recovered 14 firearms, thousands of rounds of ammunition, two bulletproof vests, and marijuana. The firearms recovered included five semi-automatic rifles and two semi-automatic pistols, all of which were capable of receiving large capacity magazines. The investigation also revealed that Steven Hyde utilized internet websites to engage in the purchase and sale of firearms, both in and out of state. Steven Hyde is a previously convicted felon who is barred from possessing a firearm. Hyde also faced charges in Wise County Circuit Court for possessing with the intent to distribute marijuana.
When interviewed by agents with the ATF, Crystal Hyde told investigators she purchased and possessed all of the weapons and ammunition recovered during the search. However, subsequent investigation revealed that the firearms and ammunition did in fact belong to Steven Hyde and that Crystal Hyde had helped her husband, whom she knew to be prohibited from possessing firearms, acquire the weapons. The investigation further revealed that Crystal Hyde lied to investigators about the firearms in an attempt to keep him out of further legal trouble.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, Explosives, the Drug Enforcement Administration, Virginia State Police, Russell County Sheriff’s Office, Wise County Sheriff’s Office, and the St. Paul Police Department. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States in federal court.
Georgia Man Indicted on Federal Charge of Using the Internet in Attempting to Entice A Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announced today the return of an indictment charging Douglas Scott Phillips (51, Richmond Hill, Georgia) with using the internet to attempt to entice a child to engage in sexual activity. Phillips faces a minimum mandatory penalty of 10 years, and up to life, in federal prison and a potential life term of supervised release. Phillips was arrested at his home in Georgia by the United States Marshals Service on February 14, 2019. He will be transported to Jacksonville for further proceedings.
This case was investigated by the St. Johns County Sheriff’s Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Liberty County (GA) Sheriff’s Office, and the Bryan County (GA) Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former St. Martinville, Louisiana, Deputy Chief Sentenced for Excessive Force, Obstruction, and ConspiracyRead the Press Release
The Honorable Judge Elizabeth Foote, of the United States District Court for the Western District of Louisiana, sentenced defendant Codi Dodge, 35, the former Deputy Chief of Investigations for the St. Martinville Police Department (SMPD), to serve nine years in prison on four felony counts related to his abuse of an arrestee. Dodge was convicted at trial in November on charges of violating the civil rights of an arrestee by using excessive force against him, and of obstructing justice and conspiring with others to do so.
“Illegal conduct by officers who abuse their power and violate the civil rights of the citizens they promise to serve harms the public trust and will not be tolerated,” said Assistant Attorney General Eric Dreiband. “The Department will continue to vigorously enforce our nation’s laws and hold officers who break the law accountable.”
“Law enforcement officers are sworn to uphold and defend the laws of our nation,” said U.S. Attorney David C. Joseph. “When they themselves break those laws, they violate not just the rights of their victims, but also compromise the public's trust in law enforcement. This case is a prime example of my commitment to hold accountable officers who threaten the mission of law enforcement by breaking the law.”
After five days of trial, a jury convicted Dodge of using excessive force on an arrestee, resulting in bodily injury to the arrestee. Evidence presented at trial established that, on Aug. 13, 2016, Dodge forced entry into the home of an individual he suspected had stolen from him, and then threatened the individual before striking him in the face with a firearm. Dodge then arrested the individual, took him to the St. Martinville Police Department, and continued to threaten him. Later, after learning that the incident had been reported to the FBI, Dodge conspired with other members of the SMPD to falsify reports regarding the incident, and to mislead the FBI in its investigation of the matter. Based on this evidence, the jury also convicted Dodge of obstruction of justice and conspiracy.
This case was investigated by the FBI’s Lafayette, Louisiana, Resident Agency. The case was prosecuted by Deputy Chief Bobbi Bernstein and Trial Attorney Tim Visser of the Civil Rights Division and Assistant U.S. Attorney John Luke Walker of the Western District of Louisiana. Trial Attorney Risa Berkower of the Civil Rights Division participated in the investigation of the case.
Former St. Martinville deputy chief sentenced to 9 years for excessive force, obstruction and conspiracyRead the Press Release
LAFAYETTE, La. – The Honorable Judge Elizabeth Foote, of the United States District Court for the Western District of Louisiana, sentenced defendant Codi Dodge, 35, the former Deputy Chief of Investigations for the St. Martinville Police Department (SMPD), Thursday to serve nine years in prison on four felony counts related to his abuse of an arrestee. Dodge was convicted at trial in November on charges of violating the civil rights of an arrestee by using excessive force against him, and of obstructing justice and conspiring with others to do so.
“Illegal conduct by officers who abuse their power and violate the civil rights of the citizens they promise to serve harms the public trust and will not be tolerated,” said Assistant Attorney General Eric Dreiband. “The Department will continue to vigorously enforce our nation’s laws and hold officers who break the law accountable.”
“Law enforcement officers are sworn to uphold and defend the laws of our nation,” said U.S. Attorney David C. Joseph. “When they themselves break those laws, they violate not just the rights of their victims, but also compromise the public's trust in law enforcement. This case is a prime example of my commitment to hold accountable officers who threaten the mission of law enforcement by breaking the law.”
After five days of trial, a jury convicted Dodge of using excessive force on an arrestee, resulting in bodily injury to the arrestee. Evidence presented at trial established that, on Aug. 13, 2016, Dodge forced entry into the home of an individual he suspected had stolen from him, and then threatened the individual before striking him in the face with a firearm. Dodge then arrested the individual, took him to the SMPD, and continued to threaten him. Later, after learning that the incident had been reported to the FBI, Dodge conspired with other members of the SMPD to falsify reports regarding the incident, and to mislead the FBI in its investigation of the matter. Based on this evidence, the jury also convicted Dodge of obstruction of justice and conspiracy.
This case was investigated by the FBI’s Lafayette, Louisiana, Resident Agency. The case was prosecuted by Deputy Chief Bobbi Bernstein and Trial Attorney Tim Visser of the Civil Rights Division and Assistant U.S. Attorney John Luke Walker of the Western District of Louisiana. Trial Attorney Risa Berkower of the Civil Rights Division participated in the investigation of the case.
Former Rochester CEO Indicted on Multiple Charges for Defrauding His Own CompanyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 15-count indictment charging Michael Margiotta, 48, of Rochester, NY, with wire fraud, money laundering, and filing a false tax return. The charges carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the indictment, between May 2011 and January 2014, the defendant was Chief Executive Officer of eHealth Global Technologies, Inc. As eHealth CEO, Margiotta entered into a contract with Healthcare Network Alliance, LLC (HCNA) for employment recruiting services. According to the contract, HCNA received a fee totaling 20% of an eHealth employee’s base salary for the first year for each employee referred by HCNA and hired by eHealth. The defendant caused HCNA to issue fraudulent invoices to eHealth and then directed subordinate employees at eHealth to pay the invoices.
In addition, Margiotta caused an individual, identified as Consultant A, to submit fraudulent invoices to eHealth for services actually provided to an unrelated entity known as Action Against Child Maltreatment, Inc. (AACM) that Margiotta controlled. Once again, the defendant directed subordinate employees at eHealth to pay the invoices.
In total, the defendant caused eHealth to pay approximately $455,000 in false and fraudulent invoices. A substantial portion of those funds were transferred into Margiotta’s personal brokerage accounts.
Furthermore, for the tax years 2011-2014, on his personal income tax returns, the defendant falsely overstated his business expenses and/or understated his business income, among other misstatements, and as a result, he evaded approximately $341,000 in taxes owed to the United States. Margiotta also filed false tax returns for his charity, AACM, for tax years 2013-2014, in order to conceal the improper transfer of $80,000 of AACM’s assets to himself.
The defendant was arraigned before U.S. Magistrate Judge Marian W. Payson and was released on conditions.
The indictment is the culmination of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Acting Special Agent-in-Charge, New York Field Office.
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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Former President and Former Chief Legal Officer of Publicly Traded Fortune 200 Technology Services Company Indicted in Connection with Alleged Multi-Million Dollar Foreign Bribery SchemeRead the Press Release
A federal grand jury returned an indictment yesterday against the former president and the former chief legal officer of Cognizant Technology Solutions Corporation, a publicly traded Fortune 200 technology services company based in Teaneck, New Jersey, in connection with an alleged foreign bribery scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey and Special Agent in Charge Gregory W. Ehrie of the FBI Newark Field Office made the announcement.
Gordon Coburn, 55, of Beaver Creek, Colorado, and Steven Schwartz, 51, of Greenwich, Connecticut, were charged in a 12-count indictment with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), three counts of violating the FCPA, seven counts of falsifying books and records, and one count of circumventing and failing to implement internal accounting controls. The charges stem from an alleged scheme to bribe one or more government officials in India to ensure the issuance of a construction permit necessary to complete the development of an office campus that would support thousands of employees and become one of Cognizant’s largest facilities in India.
The case is assigned to U.S. District Judge Kevin McNulty of the District of New Jersey. The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
“The allegations in the indictment filed yesterday describe a sophisticated international bribery scheme authorized and concealed by C-suite executives of a publicly-traded multinational company,” said Assistant Attorney General Benczkowski. “The indictment of Gordon Coburn and Steven Schwartz demonstrates the Department’s commitment to relentlessly pursuing corporate fraud and corruption wherever it is found.”
According to the indictment, in or about April 2014, Coburn and Schwartz allegedly authorized an unlawful payment of approximately $2 million to one or more foreign government officials in India to secure and obtain a necessary permit to open a new office campus. To conceal Cognizant’s involvement in the scheme, Coburn, Schwartz and others allegedly agreed that a third-party construction company would obtain the permit by making the illegal bribe payment and that Cognizant would reimburse the construction company through phony construction invoices at the end of the project. The indictment further alleges that in or about late June 2014, after the co-conspirators had agreed that the construction company would make the bribe payment on behalf of Cognizant, the construction company secured the necessary government order for Cognizant to obtain the permit, allowing Cognizant to complete the development of the office campus and avoid millions of dollars in costs. Months later, the co-conspirators are alleged to have knowingly caused Cognizant to funnel over $2 million to the construction company disguised as payment for cost overruns on the office campus when they knew that the actual purpose of the payment was to reimburse the construction company for the bribe payment. According to the indictment, as Coburn, Schwartz and others had previously agreed, they hid the bribe reimbursement payment within a series of line items in a construction change order request to be paid to the construction company, thereby concealing the true nature and purpose of the reimbursement, falsifying Cognizant’s books and records, and circumventing and failing to implement its internal controls.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Department of Justice and the U.S. Attorney’s Office for the District of New Jersey also announced today that they have declined prosecution of Cognizant after considering the factors set forth in the Department of Justice’s Principles of Prosecution of Business Organizations and the Corporate Enforcement Policy, including Cognizant’s prompt voluntary self-disclosure, cooperation and remediation, as well as Cognizant’s disgorgement to the Department and the U.S. Securities and Exchange Commission (SEC) of the cost savings that resulted from the bribery scheme.
In the related case with the SEC, Cognizant entered into a cease and desist order and agreed to pay the SEC a civil penalty, disgorgement and prejudgment interest totaling approximately $25 million. The Company will pay $16,394,351 in disgorgement of profits within the time limits prescribed by 28 U.S.C. § 2462 to the SEC, and the remaining $2,976,210 to the U.S. Treasury.
The Department appreciates the significant cooperation provided by the SEC in this case.
The case is being investigated by the FBI’s Newark Field Office. Assistant Chief David A. Last of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Courtney A. Howard and Nicholas P. Grippo of the District of New Jersey are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former President and Former Chief Legal Officer of Publicly Traded Fortune 200 Technology Services Company Indicted on 12 Counts Related to Multimillion-Dollar Foreign Bribery SchemeRead the Press Release
NEWARK, N.J. – A federal grand jury has indicted the former president and the former chief legal officer of Cognizant Technology Solutions Corp., a publicly traded Fortune 200 technology services company based in Teaneck, New Jersey, in connection with a foreign bribery scheme.
U.S. Attorney Craig Carpenito of the District of New Jersey, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Gregory W. Ehrie of the FBI Newark Field Office made the announcement today.“Corruption, bribery, and kickbacks have no rightful place in American business, and corporate officials who bribe foreign officials to gain a competitive advantage are breaking U.S. law,” U.S. Attorney Carpenito said. “As this indictment shows, we will investigate and prosecute those who would misuse their privileged positions as senior corporate executives to offer and pay bribes, and then conceal their misconduct from investors, so that we can help to restore public trust in a market that is fair and open for all.”
“The allegations in the indictment filed yesterday describe a sophisticated international bribery scheme authorized and concealed by C-suite executives of a publicly-traded multinational company,” Assistant Attorney General Benczkowski said. “The indictment of Gordon Coburn and Steven Schwartz demonstrates the Department’s commitment to relentlessly pursuing corporate fraud and corruption wherever it is found.”
“The FBI’s stance on corruption and fraud is that of zero tolerance and therefore one of our highest priorities,” Special Agent in Charge Gregory W. Ehrie said. “In this time of international commerce, whether at home or overseas, the FBI is committed to fighting both corruption and fraud. Companies should have the opportunity to prosper through honest business practices, not the practice of bribery and backroom deals.”
Gordon Coburn, 55, of Beaver Creek, Colorado, and Steven Schwartz, 51, of Greenwich, Connecticut, were charged in a 12-count indictment with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), three counts of violating the FCPA, seven counts of falsifying books and records, and one count of circumventing and failing to implement internal accounting controls. The charges stem from an alleged scheme to bribe one or more government officials in India to ensure the issuance of a construction permit necessary to complete the development of an office campus that would support thousands of employees and become one of Cognizant’s largest facilities in India.
The case is assigned to U.S. District Judge Kevin McNulty of the District of New Jersey. The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the indictment:
In April 2014, Coburn and Schwartz authorized an unlawful payment of $2 million to one or more government officials in India to secure and obtain the necessary permits to open a new office campus. To conceal Cognizant’s involvement in the scheme, Coburn, Schwartz and others allegedly agreed that a third-party construction company would obtain the permit by making the illegal bribe payment and that Cognizant would reimburse the construction company through phony construction invoices at the end of the project. The indictment alleges that in late June 2014, after the conspirators had agreed that the construction company would make the bribe payment on behalf of Cognizant, the construction company secured the necessary government order for Cognizant to obtain the permit, allowing Cognizant to complete the development of the office campus and avoid millions of dollars in costs. Months later, the conspirators are alleged to have knowingly caused Cognizant to funnel over $2 million to the construction company disguised as payment for cost overruns on the office campus when they knew that the actual purpose of the payment was to reimburse the construction company for the bribe payment.
According to the indictment, as Coburn, Schwartz and others had previously agreed, they hid the bribe reimbursement payment within a series of line items in a construction change order request to be paid to the construction company, thereby concealing the true nature and purpose of the reimbursement, falsifying Cognizant’s books and records, and circumventing and failing to implement its internal controls.
The Department of Justice and the U.S. Attorney’s Office for the District of New Jersey also announced today that they have declined prosecution of Cognizant after considering the factors set forth in the Department of Justice’s Principles of Prosecution of Business Organizations and the Corporate Enforcement Policy, including Cognizant’s prompt voluntary self-disclosure, cooperation and remediation, as well as Cognizant’s disgorgement to the Department and the U.S. Securities and Exchange Commission (SEC) of the cost savings that resulted from the bribery scheme.
In the related case with the SEC, Cognizant entered into a cease-and-desist order and agreed to pay the SEC a civil penalty, disgorgement and prejudgment interest totaling $25 million.
The Department appreciates the significant cooperation provided by the SEC in this case.
The case is being investigated by the FBI’s Newark Field Office.
The government is represented by Assistant U.S. Attorneys Courtney A. Howard and Nicholas P. Grippo, Attorney in Charge of the Trenton Office of the District of New Jersey, and Assistant Chief David A. Last of the DOJ Criminal Division’s Fraud Section.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Former Owner of Electrical Construction Company Pleads Guilty to Felony Tax ChargeRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on February 8, 2019, Susan Wenszell (57) of Milwaukee, Wisconsin, pleaded guilty to one count of failing to account for and pay federal payroll taxes to the Internal Revenue Service (“IRS”), in violation of Title 26, United States Code, Section 7202.
According to documents filed in court, Wenszell was the president and owner of J. Wenszell Enterprises Inc., an outdoor electrical construction company formed by Wenszell’s husband and his brother. The payroll taxes in question consisted of federal income taxes, Social Security taxes, and Medicare taxes withheld from the wages of employees of J. Wenszell Enterprises.
From the second quarter of 2012 through the fourth quarter of 2015, Wenszell withheld more than $1.2 million from employee wages but paid only $13,966.88 to the IRS. In addition, during the years 2010 - 2011, Wenszell withheld and failed to pay an additional $394,000. Wenszell also failed to pay the employer's share (or "matching share") of payroll taxes during the years 2010-2015, which totaled almost $530,000. Throughout this period, Wenszell failed to file any quarterly payroll tax returns with the IRS.
During the years 2012-2015, despite paying almost none of the required payroll taxes, Susan Wenszell and her husband withdrew more than $1.1 million from their business to pay personal expenses.
Wenszell faces up to five years in prison and fines of up to $250,000. She is scheduled to be sentenced on May 28, 2019.
This matter was investigated by the Internal Revenue Service Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Matthew Jacobs.
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Felon Sentenced to Prison for Possession of FirearmRead the Press Release
NEWPORT NEWS, Va. – A previously convicted felon was sentenced today to over three years in prison for possessing a firearm.
“Convicted felons who possess a firearm will be held accountable and prosecuted,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We remain steadfast in our commitment to removing guns from the hands of criminals as they present a real danger to the safety of our law enforcement partners and members of the communities they serve.”
According to court documents, in May 2018, Newport News Police officers attempted a traffic stop on a vehicle that did not use a turn signal. The vehicle later pulled over and officers observed Kenneth S. Pressley, 43, exit the passenger side of the vehicle, clutching both of his hands at the center of his waistband and flee on foot. An officer followed Pressley to the backyard of the residence, and observed him bent over at the waist and heard a firearm discharge. The officer gave Pressley verbal commands, but Pressley continued to flee from the officer for a short distance. Pressley ultimately complied and was taken into custody, and officers later recovered a Glock 23 .40 caliber handgun containing 12 rounds of ammunition, as well as the bullet Pressley discharged on scene.
“The men and women of ATF work tirelessly day in and day out, along with our law enforcement partners, to rid our streets of illegal guns and violent crime and those who jeopardize the safety of our citizens and communities,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “Be assured, if you use guns to commit violence, we are coming for you.”
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Megan M. Cowles prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-71.
Federal Jury Finds North Fort Myers Man Guilty of FEMA FraudRead the Press Release
Fort Myers, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Tommy N. Tracy (72, North Fort Myers) guilty of fraud in connection with a major disaster. Tracy faces a maximum penalty of 30 years in federal prison. His sentencing hearing is scheduled for May 13, 2019.
According to testimony and evidence presented at trial, on September 13, 2017, Tracy applied for Federal Emergency Management Agency (FEMA) assistance for a residence located at 18301 Slater Road in North Fort Myers. He claimed that this was his primary residence, that he was living there at the time of the disaster, and that he did not own a rental property affected by the disaster. In fact, the property on Slater Road was not his primary residence, he was not residing there at the time of the disaster, and it was a rental property owned by him. Tracy fraudulently received over $24,000 in disaster assistance, including an additional six months of shelter assistance from FEMA.
This case was investigated by the Department of Homeland Security – Office of Inspector General. It is being prosecuted by Chief Assistant United States Attorney Jesus M. Casas and Assistant United States Attorney Trenton Reichling.