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13 February 2019
St. John Man Sentenced to Six Months for Smuggling Four Illegal Aliens from Tortola to the U.S. Virgin IslandsRead the Press Release
St. Thomas, USVI – Brice Todman, 36, of St. John, was sentenced today in District Court before District Court Judge Curtis V. Gomez on a charge of bringing illegal aliens into the United States, United States Attorney Gretchen C.F. Shappert announced. District Court Judge Curtis V. Gomez sentenced Todman to six months incarceration followed by three years supervised release. Judge Gomez ordered that Todman pay a $100 special assessment, forfeit the $4,000 paid to him by the illegal aliens and the vessel used to bring the illegal aliens into the Virgin Islands.
According, to court documents, on October 21, 2018 at approximately 9:00 p.m., U.S. Customs and Border Protection (CBP) Air and Marine Operations (AMO) apprehended a Virgin Islands-registered vessel in the area of North Haulover Bay, St. John after agents observed that the vessel was operating with no lights. After AMO agents stopped the vessel, they observed five male individuals on board. Todman was identified as the captain and the other four male individuals were from the Dominican Republic, Argentina and Venezuela and did not have permission to be in the United States. Two of the four illegal aliens admitted to agents that they had paid Todman $ 1,000 to transport them from Tortola, BVI to St. John.
The case was investigated by Homeland Security Investigations (HSI) and U.S. Customs and Border Protection Air and Marine Unit (AMO) and prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Sierra Pacific Mortgage Agrees to Pay $3.67 Million to Resolve False Claims Act Allegations Related to the FHA Loan ProgramRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott announced today that Sierra Pacific Mortgage Company Inc. (SPM), a national mortgage lender headquartered in Folsom, has agreed to pay the United States $3,670,000 to resolve allegations that it violated the False Claims Act by falsely certifying compliance with Federal Housing Administration (FHA) mortgage insurance requirements in connection with certain loans.
During the time period covered by the settlement, SPM participated as a direct endorsement lender (DEL) in the U.S. Department of Housing and Urban Development’s FHA insurance program. A DEL has the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD for the resulting losses. DELs are required to follow program rules designed to ensure they are properly underwriting and certifying mortgages for FHA insurance and to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices.
The United States alleged that between April 2007 and June 2009, SPM knowingly submitted loans for FHA insurance that did not qualify. The United States further alleged that SPM failed to properly respond to internal warning signs that its loans were poorly underwritten and failed to properly implement a quality control program once it was aware of those warning signs.
The False Claims Act allows the government to recover damages and penalties for the presentation of false claims for payment to the United States. By improperly approving loans that did not qualify for FHA insurance, SPM caused the United States to pay insurance claims on those loans when they defaulted.
“When mortgage companies fail to follow lending standards, it harms both taxpayers and borrowers,” said U.S. Attorney Scott. “We will continue to work with HUD/FHA and our law our law enforcement partners to ensure the integrity of the FHA insurance program.”
“The wrongful actions of SPM were not minor mistakes or foot faults. There is no room at FHA for lenders who knowingly violate the trust placed in them as direct endorsement lenders,” HUD General Counsel Paul Compton said.
Assistant Special Agent in Charge Tony Meeks, HUD-Office of Inspector General, added, “When unscrupulous lenders deliberately ignore HUD guidelines, it undermines the housing market and creates distrust between potential home buyers and federal programs designed to assist them. Our office is committed to ensuring the FHA insurance program will not be mismanaged, and we are committed to pursuing all acts of fraud, waste and abuse.”
This settlement was the result of a joint investigation conducted with HUD’s Office of Inspector General. Assistant U.S. Attorney Colleen M. Kennedy handled the case for the United States. The claims settled by this agreement are allegations only and there has been no determination of liability.
Shreveport felon sentenced to 46 months in prison for possessing revolverRead the Press Release
SHREVEPORT, La. – Roderick Charles Scott, 43, of Shreveport, was sentenced Tuesday by U.S. District Judge S. Maurice Hicks Jr. to three years and 10 months in prison followed by three years of supervised release for being a felon in possession of a firearm, announced U.S. Attorney David C. Joseph.
Shreveport police responded to a shooting on June 23, 2017 in the Hollywood area and observed Scott entering a home on Miles Street, according to the guilty plea. When Scott exited the house, he had a Rossi .38 special caliber revolver clenched in his right hand. Police officers confiscated the gun and arrested Scott.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. In 2004, Scott was convicted in the Western District of Louisiana for being a felon in possession of ammunition. Roderick Scott was indicted on June 27, 2018 and pleaded guilty on October 11, 2018.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The ATF and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Aaron J. Crawford is prosecuted the case.
Seven More Defendants Sentenced for Participating in Schemes Related to Defrauding Health Care Benefit Programs, Unlawful Dispensing of Opioids, and Money LaunderingRead the Press Release
Seven defendants, in multiple cases, have been sentenced for their roles in schemes related to defrauding health care benefit programs, unlawful dispensing of opioids, and money laundering.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak-OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.
Dr. Arman Abovyan and Tina Marie Barbuto (Case No. 18cr80122)
Dr. Arman Abovyan, 44, of Boca Raton, was sentenced today to 135 months in prison, to be followed by three years of supervised release, and was ordered to pay $1,058,097.88 in restitution. He was previously convicted at trial of one count of conspiracy to commit health care fraud; one count of conspiracy to possess, distribute, and dispense controlled substances; and seven counts of unlawfully dispensing controlled substances. On January 24, 2019, co-defendant Tina Marie Barbuto, 39, of Boca Raton, was sentenced to 36 months in prison, to be followed by three years of supervised release, and was ordered to pay $3,132,806.13 in restitution. She previously pled guilty to one count of conspiracy to commit health care fraud.
Abovyan, a licensed medical doctor in the State of Florida, was the Medical Director of Journey to Recovery (Journey) in Boca Raton and Reflections Treatment Center (Reflections) in Margate from July 2016 to December 2016. As medical director, Abovyan was responsible for evaluating patients, developing appropriate plans of treatment, and prescribing medically necessary treatment and testing. Barbuto served as the Assistant Clinical Director of Reflections from December 2015 to November 2016, and served as the Clinical Director of Reflections from November 2016 to December 2016. As Clinical Director, Barbuto was responsible for supervising clinical services, including regularly reviewing the work performed by subordinate employees.
The co-defendants established sober homes that were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. To obtain residents for the sober homes, members of the conspiracy provided kickbacks and bribes, in the form of free or reduced rent and other benefits, to individuals with insurance who agreed to reside at the sober homes, attend drug treatment, and submit to regular drug testing that members of the conspiracy could bill to the residents’ insurance plans. Although the sober homes were purportedly drug-free residences, some of the defendants permitted the residents to continue using drugs as long as they attended treatment and submitted to drug testing.
Abovyan and Barbuto’s co-conspirators, who owned, operated and managed sober homes, referred the residents with insurance to become patients at Journey and Reflections, in return for kickbacks and bribes which were often disguised as marketing fees, consulting fees, commissions, and case management fees. Barbuto and co-conspirators caused confirmatory testing to be performed and testing and substance abuse treatment to be billed for patients knowing that the patients had been discharged or had left the treatment centers and were no longer receiving treatment or submitting bodily fluid samples for testing at the treatment centers. Abovyan ordered drug testing for the treatment center patients, regardless of whether such testing was medically necessary or conducted and billed in compliance with the terms of the insurance plans; electronically signed hundreds of lab test results for Reflections' patients falsely certifying that he had reviewed the results and the statements of medical necessity for the lab testing; and provided blank, pre-signed prescriptions to other individuals who were not certified to prescribe controlled substances without those patients being examined.
Abovyan and Barbuto and their co-conspirators prepared and submitted fraudulent insurance claim forms to the insurance plans falsely stating that the testing and treatment had been medically necessary and actually rendered when some of the claimed testing and treatment had not been necessary or performed; failing to disclose that the patients had not been asked to pay their co-payments and deductibles; and failing to disclose that Journey and Reflections had obtained their licenses through false statements and omissions.
Mark Jeffrey Hollander (Case No. 18cr80102) and Bosco Jose Vega (Case No. 18cr80101)
On January 28, 2019, Mark Jeffrey Hollander, 44, of Miami, was sentenced to 21 months in prison, to be followed by two years of supervised release. On February 1, 2019, Bosco Jose Vega, 52, of Miami, was sentenced to 9 months in prison, to be followed by one year of supervised release. Both defendants previously pled guilty to one count of engaging in a monetary transaction of a value greater than $10,000 that was derived from health care fraud.
Smart Lab, LLC was a company that offered bodily fluid testing services, including confirmatory urinalysis testing. Smart Lab’s Chief Executive and Chief Operating Officers established employment agreements where co-conspirators would solicit bodily fluid samples from substance abuse treatment centers that would be submitted to Smart Lab for expensive confirmatory drug testing. In exchange, Smart Lab would kick back a portion of the insurance reimbursements, disguised as payments for sales commissions, to co-conspirators, understanding that a portion of these payments would then be paid, directly or indirectly, to owners, operators, or clinicians at the substance abuse treatment centers that referred the testing of urine samples from insured patients.
To achieve the goal, form standing orders and drug testing protocols were established that provided for duplicative, medically unnecessary, and expensive confirmatory testing regardless of the individual needs of any patients. To further the scheme, co-conspirator treatment center owners required the insured substance abuse treatment center patients to submit to confirmatory drug testing approximately three times per week, which Smart Lab could bill to the insurance plans. Smart Lab elected not to collect mandatory co-payments, deductibles, and other co-insurance from patients that could cause patients to be unable or unwilling to submit to testing. The defendants did not inform the insurance plans that they were not collecting the required co-insurance payments.
Hollander and Vega both signed employment agreements with Smart Lab that purported to make them “sales representatives”. These agreements were used to make it appear that monies paid to them were for services rendered. The employment contracts were created to hide the true purpose and recipient of the payments. Hollander and Vega did not perform any actual services for Smart Lab and they were paid “commissions” from the proceeds of health care fraud.
John Michael Skeffington, Babette Hayes, and Mona Montanino (Case No. 18cr80018)
On January 25, 2019, John Michael Skeffington, 52, of Boca Raton, was sentenced to 52 months in prison, to be followed by three years of supervised release. He previously pled guilty to one count of participating in a health care fraud conspiracy and one count of obstructing a criminal health care investigation. Co-defendants Babette Hayes, 58, of Sarasota, and Mona Montanino, 56, of Boca Raton, were both sentenced to probation after previously pleading guilty to one count of obstructing a criminal heath care investigation.
According to court documents, Skeffington, Hayes and Montanino established five shell companies, disguised as “laboratory marketing companies,” in order to unlawfully refer medically unnecessary and excessive bodily fluid tests for residents and patients of sober homes and substance abuse treatment facilities to various clinical laboratories and rural hospitals. Hayes and Montanino purported to be the chief executive officers of some of the companies, but it was Skeffington who actually operated and controlled the companies and directed the co-defendants’ actions. In exchange for patient referrals, the laboratories and hospitals would provide a pre-set percentage of insurance payments (“kickbacks”) to the defendants, which they would then share with the sober homes and substance abuse treatment facilities.
The fraud scheme took advantage of higher insurance reimbursement rates for testing conducted by hospitals. In some cases, the hospitals would submit claim forms as if the patients submitted samples in person when, in reality, the patients were hundreds of miles away, were never treated at the hospitals, and were unaware that their insurance plans were billed for the services. During the course of the scheme, Skeffington increased his use of rural hospitals for the fraudulent testing, after insurance companies began to scrutinize claims from clinical laboratories for bodily fluid tests.
The kickback amounts, often disguised as payments for sales commissions to Skeffington’s companies, were based on written and unwritten agreements between Skeffington and the laboratories and hospitals. Upon receiving the payments, Skeffington would directly or indirectly provide kickback payments to the sober homes and substance abuse treatment center owners who were accomplices in the scheme.
Once Skeffington, Montanino and Hayes became aware of the FBI investigation into fraudulent medical claims, they created dozens of fake documents meant to obstruct the investigation and disguise the kickbacks as hourly payments for marketing services. They asked, both those from whom they had received kickbacks and those to whom they provided kickbacks, to sign the documents to further conceal their illegal activities. Signed documents and invoices were back-dated to make it appear as though they had been signed and submitted before the kickback payments were made.
These cases are all the result of the work of the Greater Palm Beach Health Care Fraud Task Force. The Task Force’s ongoing investigation into substance abuse treatment fraud in the Southern District of Florida has resulted in 30 convictions to date. Agencies of the Task Force include the FBI, IRS-CI, the Florida Division of Investigative and Forensic Services, Amtrak OIG, DOL-EBSA, and NICB.
U.S. Attorney Fajardo Orshan commended the investigative efforts of all law enforcement agencies connected with the Task Force, as they continue to combat sober home abuses and health care fraud.
These cases were prosecuted by Assistant U.S. Attorneys A. Marie Villafaña and Alexandra Chase.
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
Sasha Sun Sentenced to 12 Months Imprisonment for Harboring Illegal AliensRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Sasha Sun, age 48, from Tumon, Guam, was sentenced in the District Court of Guam to 12 months imprisonment for Harboring Illegal Aliens. The Court also ordered Sun to be placed on three years of supervised release following Sun’s release from custody and to pay a mandatory $100.00 special assessment fee. Additionally, the Court ordered the forfeiture of Sun’s San Vitores Village condominium and $74,794.00 in U.S. currency.
Homeland Security Investigations’ undercover operation revealed that Sun, the owner of the Joy Luck Club in Tumon, illegally employed three female aliens from Taiwan. The aliens entered Guam as tourists under the Visa Waiver Program, a program that grants entry of certain aliens into Guam for 45 days. Those entering under the program are prohibited from working while on island. However, Sun employed the female aliens as hostesses, selling $20 drinks to men who patronized the business. Sun paid the aliens $10.00 for every drink they sold.
U.S. Attorney Anderson stated, “Those who recruit and harbor aliens for unlawful employment on Guam will face criminal prosecution and the potential forfeiture of assets related to their crimes. In this case, Sun also used her condominium to house the aliens who were illegally working. In addition, the money found in her condominium was illegal proceeds from the unlawful harboring of those aliens. The U.S. Attorney’s Office is committed to aggressively prosecuting these offenses and eliminating any financial incentive to engage in such conduct.”
The investigation was conducted by the U.S. Department of Homeland Security, Homeland Security Investigations and the Guam Police Department. This case was prosecuted by Rosetta San Nicolas, an Assistant United States Attorney for the District of Guam.
Project Parkersburg Update: Arizona Man Pleads Guilty to Federal Methamphetamine ChargesRead the Press Release
CHARLESTON, W.Va. – An Arizona man who was arrested as part of Project Parkersburg – a major takedown and dismantling of a multi-state drug trafficking organization (DTO) responsible for distributing methamphetamine and heroin -- pled guilty to conspiracy to distribute 500 grams or more of methamphetamine, announced United States Attorney Mike Stuart. Troy Pastorino, 39, entered his guilty plea before United States District Judge Irene C. Berger. Stuart commended the investigative efforts of the FBI, the Parkersburg Police Department, the Dayton Ohio Police Department, and the Parkersburg Narcotics and Violent Crime Task Force. The long-term, joint investigation resulted in at least 29 individuals being charged in federal and state court, the seizure of 150 pounds of methamphetamine and 4 pounds of heroin.
“The people of Parkersburg deserve a city free of drug thugs and dealers. Pastorino is the first federal Project Parkersburg defendant to plead guilty,” said United States Attorney Mike Stuart. “More than two dozen individuals were arrested on federal and state charges in October 2018 during the major takedown, dubbed “Project Parkersburg,” which dismantled a significant, multi-state DTO with connections to sources of supply in Mexico. There is no doubt lives have been saved as a result of our efforts.”
In September 2018, during a long-term investigation of a methamphetamine trafficking organization operating in Parkersburg, the FBI learned that a large shipment of methamphetamine was being shipped from the Phoenix, Arizona area to Parkersburg where it was to be sold in and around Wood County. On September 19, 2018, FBI and drug task force agents intercepted the shipment in Dayton, Ohio during a traffic stop of a Dodge Charger driven by Pastorino. Upon searching the trunk of the vehicle, agents seized approximately 150 pounds of methamphetamine and cocaine. During his plea hearing, Pastorino admitted that his role was to facilitate shipping the methamphetamine from Arizona.
Pastorino was charged with 16 other defendants in a two-count federal indictment in October 2018. He faces 10 years to life in federal prison when he is sentenced on June 12, 2019.
Assistant United States Attorney Joshua C. Hanks is responsible for the prosecution.
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###Prisoner Convicted of Mailing Threats to Murder a Federal JudgeRead the Press Release
FRESNO, Calif. — After a two-day trial, a federal jury found Cyrus Dennis Braswell, 57, guilty today of three counts of mailing threatening communications, U.S. Attorney McGregor W. Scott announced.
According to court documents, a federal judge in the District of Alaska sentenced Braswell in 1998. Thereafter, while an inmate at Mendota Federal Correctional Institute in Fresno County, Braswell mailed communications to Alaska in which he threated to murder the judge after he got out of prison.
This case is the product of an investigation by the Federal Bureau of Investigation, the U.S. Marshals Service, and the Bureau of Prisons. Assistant U.S. Attorneys Laura D. Withers and Kirk E. Sherriff are prosecuting the case.
Braswell is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 6, 2019. Braswell faces a maximum statutory penalty of 10 years in prison and a $250,000 fine on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Braswell currently remains in the custody of the Bureau of Prisons.
Pittsburgh-area Residents Charged in Armed Robbery Spree of Local BanksRead the Press Release
PITTSBURGH – Nicole Wallace, 34, of Carnegie, Pennsylvania, and Edward Hooten, 42, of Pittsburgh, Pennsylvania, have been charged in two separate but related indictments with conspiring to rob three area banks, armed bank robbery, attempted armed bank robbery, and aiding and abetting armed bank robbery, United States Attorney Scott W. Brady announced today.
According to the February 12, 2019 indictments, Wallace and Hooten, conspired to, and aided and abetted, the armed robbery of Huntington Bank in Pittsburgh, PA on October 17, 2018. Wallace is also charged with conspiring to, and aiding and abetting, the attempted armed robbery the First National Bank in Pittsburgh, PA on October 26, 2018, and the armed robbery of First National Bank in Pittsburgh, PA on October 29, 2018.
The law provides for a maximum total sentence of 25 years for each aiding and abetting count, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Nicole Vasquez Schmitt is prosecuting the cases on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictments in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Physical Therapist and Acupuncturist Sentenced in Manhattan Federal Court for Their Roles in Million Dollar Scheme to Defraud Medicare and MedicaidRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ASHRAF HASAN-HAFEZ and ILYA KOGAN were sentenced yesterday to 45 and 50 months, respectively, in prison for their participation in a scheme to defraud the Medicare and Medicaid programs. HASAN-HAFEZ, the owner of a physical therapy practice in Brooklyn, and KOGAN, the owner of an acupuncture company in Brooklyn, received approximately $1.3 million from Medicare and the New York State Medicaid Program after falsely submitting bills for services that were not provided as billed, or which were rendered by unlicensed and unsupervised individuals. In a separate scheme, KOGAN also obtained nearly $300,000 from no-fault insurance companies based on billing by fraudulently incorporated acupuncture companies. HASAN-HAFEZ and KOGAN were sentenced yesterday by United States District Judge Robert W. Sweet.
According to the Indictment filed in Manhattan federal court, as well as previous court filings and statements made in public court proceedings:
Between at least January 2010 and August 2013, HASAN-HAFEZ was the owner of a physical therapy practice which operated out of a basement on East 18th Street in Brooklyn, New York. HASAN-HAFEZ employed individuals who provided physical therapy services to patients, and was involved in the clinic’s management and billing. KOGAN was the owner of an acupuncture company which operated its practice out of the same location on East 18th Street.
HASAN-HAFEZ and KOGAN committed fraud against Medicare and Medicaid by pressuring employees to add services to the bills that were submitted to these entities so that Medicare and Medicaid were billed for physical therapy services that were never in fact provided; billed for reimbursable physical therapy services even though only unreimbursable acupuncture had been provided; and billed for physical therapy services provided by unlicensed practitioners. When the employees resisted KOGAN’s directions to create such fraudulent billing, HASAN-HAFEZ directed the employees to follow KOGAN’s instructions. HASAN-HAFEZ had leverage over these employees because he sponsored their employment in the United States and they were therefore dependent on him for continued employment—and legal status—in the United States.
In total, Medicare and Medicaid suffered actual losses of $1,297,000 as a result of this fraudulent scheme.
In addition, KOGAN participated in a separate scheme to defraud no-fault insurance companies. No-fault insurance provides benefits to individuals injured in motor vehicle accidents under certain conditions. Between approximately March 2014 and June 2016, KOGAN controlled two acupuncture businesses that had been set up, at his request, under the name of another acupuncturist (“Individual-1”). KOGAN coached Individual-1 how to lie under oath about KOGAN’s involvement in the businesses when Individual-1 was questioned by representatives of a no-fault insurer. KOGAN had previously entered into settlement agreements with two of the largest no-fault insurance providers to resolve certain claims against him. Pursuant to one of the settlement agreements, KOGAN agreed not to submit any future billing—under his name, or under the name of any entity in which he had direct or indirect ownership or control—without giving advance notice to the insurer.
A total of $293,851 was paid to two no-fault insurers for services performed by Individual-1’s companies. Had the insurers known the truth—that the acupuncture clinics were in fact controlled by KOGAN despite being registered in Individual-1’s name—they would not have paid the claims due to the fraudulent incorporation of the companies.
* * *
ASHRAF HASAN-HAFEZ, 47, of Brooklyn, New York, pled guilty to health care fraud and conspiracy to commit health care fraud on March 16, 2018. ILYA KOGAN, 44, of Watchung, New Jersey, pled guilty to health care fraud and conspiracy to commit health care fraud on March 16, 2018, and pled guilty to conspiracy to commit mail fraud on June 25, 2018. In addition to the prison terms, Judge Sweet ordered HASAN-HAFEZ and KOGAN to forfeit $1,297,000 and pay restitution of $1,297,000 to Medicare and Medicaid. KOGAN was also ordered to forfeit $293,851 and pay restitution of $293,851 to victims of the no-fault insurance fraud scheme.
Mr. Berman praised the outstanding investigative efforts of FBI and HHS-OIG.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Noah Solowiejczyk, Catherine Ghosh, and Jessica Greenwood are in charge of the prosecution.
Pensacola Registered Sex Offender Sentenced to 12.5 Years in Prison for Possession of Child PornographyRead the Press Release
PENSACOLA, FLORIDA – Christopher M. Arguelles, 34, of Pensacola, was sentenced to 12.5 years in prison today and a lifetime of supervised release as a federal sex offender. On November 15, 2018, Arguelles pleaded guilty to possession and access with intent to view child pornography. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
In February 2018, while a telecommunications provider was assisting Arguelles with his slow running cellular telephone, the provider observed a large amount of pornography on the phone, including a folder titled “underage.” Several days later, Arguelles, a sex offender, was arrested for failure to register a change in his residence, and his cellular telephone was seized. A forensic review of the device revealed images and videos of child pornography both on the phone and on the memory card. Examples of subfolder titles were “Sammy 14 yo,” “15yo Jen,” and “14 year old Erin.” Some of the child pornography involved females under age 12. Arguelles also maintained a cloud storage account with similar illicit materials.
U.S. Attorney Keefe said: “I am proud that prosecutors, law enforcement professionals, and North Floridians are all working together to bring child predators to justice and protect the most innocent members of our communities from exploitation.”
“This case highlights the value of vigilance by members of the community, who come forward and work with law enforcement when they see something wrong,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “The FBI and our law enforcement partners are dedicated to working together to protect and serve, but we are far more effective when the community also works with us. We appreciate the efforts of everyone involved in the case, and their unwavering commitment to protect our children.”
The case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Escambia County Sheriff’s Office, the State Attorney’s Office – First Judicial Circuit, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Pensacola Man Sentenced to 15 Years in Federal Prison for a Drug ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Antoine Devon Wilson, 35, of Pensacola, Florida, was sentenced today to serve 15 years in federal prison after pleading guilty on November 29, 2018, to conspiracy to possess with intent to distribute over 5 kilograms of cocaine. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
In July 2018, agents with the Drug Enforcement Administration seized 23 kilograms of cocaine that were being delivered to Wilson in Pensacola. Wilson was subsequently arrested. Following Wilson’s arrest, search warrants were obtained authorizing the search of his cellular telephones seized from him. Evidence on one or more of Wilson’s cellular telephones confirmed that Wilson had ordered the 23 kilograms of cocaine and was expecting them to be delivered to a location in Pensacola.
The case resulted from the investigation by the Drug Enforcement Administration, the Florida Department of Law Enforcement, the Escambia County Sheriff’s Office, the Pensacola Police Department, the Santa Rosa County Sheriff’s Office, the Gulf Breeze Police Department, and the Okaloosa County Sheriff’s Office. It was prosecuted by Assistant United States Attorney J. Ryan Love.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Pass Christian Convicted Felon Sentenced for Possessing AmmunitionRead the Press Release
Gulfport, Miss – Cornell Demidridous Smith, 40, of Pass Christian, was sentenced by U.S. District Judge Louis Guirola, Jr., to 30 months in federal prison followed by three years of supervised release for being a felon in possession of ammunition, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Smith was also ordered to pay a $5,000 fine.
On February 3, 2018, Pass Christian Police officers executed a search warrant at the home of Smith as part of a homicide investigation. The officers found Smith at a table with bullets. Smith was previously convicted of manslaughter in Walthall County, Mississippi, and is therefore prohibited from having ammunition.
The Pass Christian Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It was prosecuted by Assistant United States Attorney Annette Williams.
Parkville Man Indicted for False Tax ReturnsRead the Press Release
KANSAS CITY, Mo. – A Parkville, Mo., man has been indicted by a federal grand jury for filing false tax returns.
Patrick Michael Dingle, 48, was charged in a four-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Feb. 12, 2019. That indictment was unsealed and made public today following Dingle’s arrest and initial court appearance.
The federal indictment alleges that Dingle filed false tax returns for the four calendar years from 2013 to 2016. According to the indictment, Dingle claimed a total of $1,661,198 in business expenses for Mets, LLC, a business he formed, on Schedule C forms filed during those years. Dingle allegedly knew the actual expenses were substantially lower.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Stacey Perkins Rock and Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Owner of New York Investment Fund Pleads Guilty to Committing $22 Million Scheme to Defraud InvestorsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that BRENT BORLAND, the owner and principal of a New York-based investment fund known as Belize Infrastructure Fund I LLC (“Belize Fund”), pled guilty to perpetrating a $22 million investment fraud scheme against dozens of Belize Fund investors. BORLAND pled guilty today before U.S. District Judge Katherine Polk Failla to conspiring to commit, and the commission of, securities fraud and wire fraud.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Brent Borland solicited funds from investors for a project to build a new airport in Belize. In doing so, Borland promised a high rate of return and assured investors that their funds were secured by real property. Not only was he not truthful about the collateral for their investments, Borland used a substantial portion of investors’ funds to support his own lavish lifestyle. Today, Brent Borland admitted to investor fraud to the tune of $22 million, and faces substantial time in federal prison.”
According to the Complaint and Indictment:
From 2014 through March 2018, BORLAND and others solicited and received approximately $21.9 million through Belize Fund from approximately 40 investors based upon representations that BORLAND would use the investors’ money to construct an airport in Belize. BORLAND promised investors high rates of return on their investments, which he represented were temporary “bridge financing.” BORLAND also represented to investors that their investments would be fully secured by real property in Belize that was unencumbered by any liens or obligations.
In fact, however, BORLAND misappropriated millions of dollars of investors’ funds and used those funds for his own personal benefit. BORLAND diverted at least approximately 30 percent of the approximately $21.9 million invested by victims to himself to pay for a variety of personal expenses, including his mortgage payments, credit card bills, luxury automobiles, a beach club membership, and private school tuition for his children. In contrast to BORLAND’s representations that investors would receive high rates of return within a specified time frame, all known investors in the scheme lost money. And while BORLAND represented that the investments would be secured by real property, the property purportedly serving as collateral was improperly pledged to multiple investors and, in some cases, did not even exist.
* * *
BORLAND, 48, pled guilty to one count of conspiracy to commit securities fraud and wire fraud, which carries a maximum potential sentence of five years in prison; one count of securities fraud, which carries a maximum potential sentence of 20 years in prison; and one count of wire fraud, which carries a maximum potential sentence of 20 years in prison. The maximum potential 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. BORLAND is scheduled to be sentenced before Judge Failla on June 21, 2019.
Mr. Berman praised the investigative work of the U.S. Postal Inspection Service and thanked the Securities and Exchange Commission.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore and Negar Tekeei are in charge of the prosecution.
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Orrum Man Charged for Possession of Firearm by a Felon After Allegedly Firing Shots at OfficersRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that in federal court, before United States Magistrate Judge Robert B. Jones, Jr., GARY LYNN GATLIN, of Orrum, North Carolina, was charged in a federal Criminal Complaint for possession of a firearm by a felon.
The affidavit attached to the Criminal Complaint alleges that GATLIN possessed a firearm as a convicted felon on February 8, 2019. On February 8, 2019, two law enforcement officers were conducting surveillance near Water Tower Road and Gatlin Drive in Orrum, North Carolina. It is alleged that GATLIN confronted the officers about why they were near his property and left the scene. Shortly thereafter, GATLIN returned to the area with a shotgun. GATLIN fired one shot into the air and fired multiple shots in the direction of the officers, which struck their vehicle. The officers then left the scene and GATLIN fled the area. Prior to February 8, 2019, GATLIN had been convicted of Common Law Robbery in Robeson County. GATLIN was taken into custody on February 12, 2019.
The charge and allegations contained in the Criminal Complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case was brought using the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Robeson County Sheriff’s Office, and Wake County Sheriff’s Office contributed to the investigation of this case.
Onalaska Man Sentenced to 6 Years for Methamphetamine ConspiracyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Ryan Koenig, 23, Onalaska, Wisconsin, was sentenced last week by U.S. District Judge William M. Conley to 72 months in federal prison for conspiring to distribute methamphetamine. Koenig pleaded guilty to this charge on November 16, 2018 and was sentenced on February 8.
Koenig conspired with Roberta Draheim and others to distribute large quantities of methamphetamine to the La Crosse area. Draheim’s trafficking operation was responsible for the shipment of over 35 packages of methamphetamine from California to the La Crosse area over a 15-month period. Many of those packages consisted of multiple pounds of methamphetamine.
During sentencing, Judge Conley stated that Koenig became aware that Draheim’s associates had access to cheap, high-quality methamphetamine from California and capitalized on this connection to order large quantities of methamphetamine for distribution in the La Crosse area. This was Koenig’s first federal conviction, second drug distribution conviction, and fifth overall adult criminal conviction.
Koenig and five other individuals were charged for their roles in this methamphetamine distribution conspiracy. Five of the six individuals charged in the indictment have pleaded guilty; Koenig is the third to be sentenced.
The charge against Koenig was the result of an investigation conducted by the Drug Enforcement Administration in Wisconsin and California; Wisconsin Department of Justice Division of Criminal Investigation; U.S. Postal Inspection Service; La Crosse Police Department; Prairie du Chien Police Department; and Dane County Sheriff’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Diane Schlipper.
Olympian Village Alderman Sentenced for Embezzling from City CoffersRead the Press Release
St. Louis – Gary Atchley, 54, of Perryville, Missouri, was sentenced to 15 months in prison on Wednesday for wire fraud. He was also ordered to pay $187,252.60 in restitution. He appeared in federal court before U.S. District Henry Autrey.
According to court documents, between 2008 and 2016, Atchley, who was serving as a city alderman for Olympian Village, embezzled $187,252.60 in city funds. At no time was Atchley an authorized signatory on the Olympian Village account. He used the account to pay personal expenses, including making checks to cash and writing checks directly to himself. Approximately $58,000 was bought in personal merchandise using pre-authorized debit transactions and the $127,000 of checks he wrote to himself were not authorized by the Olympian Village government.
"Today's sentence is just," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "The harm of public corruption manifests itself not only in financial loss, but also the loss of faith in government and public officials."
“I’m thankful we have a U.S. Attorney that has been aggressive in addressing these types of crimes,” said Jefferson County Sheriff Dave Marshak. “I commend the Detectives and Agent that worked hard to bring this case to a successful resolution. Stealing from this community is unacceptable and I’m glad that he is being held accountable.”
This case was investigated by the Federal Bureau of Investigation and the Jefferson County Sheriff’s Department. Assistant U.S. Attorney Gwen Carroll is handling the case for the U.S. Attorney’s Office.
Northern Nevada Woman Pleads Guilty to Stabbing Elderly Man on Indian ReservationRead the Press Release
RENO, Nev. – A member of the Te-Moak of the Western Shoshone pleaded guilty today to stabbing an elderly man multiple times, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Jean Angela Ortega, aka Angel Jim, 41, pleaded guilty to assault resulting in serious bodily injury. She is an enrolled member of the Te-Moak Tribe of the Western Shoshone. United States District Judge Howard D. McKibben scheduled sentencing for May 29, 2019.
According to court documents, on February 1, 2018, an officer with the Bureau of Indian Affairs responded to a possible stabbing incident at a house within the territorial boundaries of the Elko Indian Colony for the Te-Moak Tribe of Western Shoshone, in Elko, Nevada. Upon arriving at the house, the officer found a 78-year-old man on the floor bleeding from multiple stab wounds. He was transported to the North Eastern Nevada Regional Hospital and later flown by an emergency medical helicopter to Salt Lake City, Utah, for further treatment, including surgery. Ortega admitted that she assaulted and stabbed the victim in the abdomen, arm, and back.
Ortega faces the maximum statutory penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Indian Affairs and FBI. Assistant U.S. Attorney Sue Fahami is prosecuting this case.
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New Castle Man Charged with Illegally Receiving Railroad Retirement BenefitsRead the Press Release
PITTSBURGH, PA – A Lawrence County resident has been indicted by a federal grand jury in Pittsburgh on a charge of theft of government property, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned yesterday, named Joshua L. Bable, 31, of New Castle, Pennsylvania.
According to the Indictment, from April 4, 2016, through December 30, 2016, Bable received $13,013.47 in Railroad Retirement Board unemployment benefits to which he knew he was not entitled.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Railroad Retirement Board, Office of Inspector General, Office of Investigations, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Missoula man sentenced for meth, firearms violationsRead the Press Release
MISSOULA—A Missoula man who admitted possessing methamphetamine and a firearm was sentenced on Tuesday to 10 years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Jeremy Douglas Smith, 29, pleaded guilty in October to possession with intent to distribute meth and to possessing a firearm in furtherance of a drug trafficking crime.
Chief U.S. District Judge Dana L. Christensen presided.
Prosecutors said evidence showed that on May 2, 2018, the Missoula County Sheriff’s Office conducted a traffic stop on a vehicle Smith was driving. A search warrant for the vehicle led to the recovery of meth, a 9mm pistol, drug paraphernalia and ammunition. Smith admitted to law enforcement that he distributed meth and possessed the firearm.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the FBI.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Mineral County man and Virginia man admit to roles in methamphetamine conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Corey Bircher, of Elk Garden, West Virginia, and Steve William Gray, of Luray, Virginia, have admitted to their roles in a methamphetamine conspiracy, United States Attorney Bill Powell announced.
Bircher, age 25, pled guilty to one count of “Possessing a Firearm in Furtherance of a Drug Trafficking Crime.” Bircher admitted to having a .357 revolver during a methamphetamine distribution crime in February 2018 in Mineral County.
Gray, age 39, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” He admitted to conspiring with others to distribute methamphetamine from August 2017 to June 2018 in Mineral, Hardy, and Hampshire Counties.
Bircher is facing no less than five years incarceration and a fine of up to $250,000. Gray is facing up to 20 years incarceration and a fine of up to $1,00,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Methuen Man Indicted for Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Methuen man was charged in federal court in Boston with illegal possession of a firearm and ammunition.
Michael O’Neil, 37, was indicted on one count of being a felon in possession of a firearm and ammunition. O’Neil was arrested on Dec. 1, 2018, in Andover, when police seized a loaded .380 caliber pistol from him. He has been in state custody since that time and will appear in federal court at a later date. O’Neil is prohibited from possessing a firearm due to a prior conviction punishable by more than one year in prison.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Essex County District Attorney Jonathan W. Blodgett; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Evan Panich of Lelling’s Office is prosecuting the case.
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. PSN is 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 details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Meth Offense Sends Richland County Man to Prison for 15 YearsRead the Press Release
Harvey L. Ireland, 35, of Olney, Illinois, has been sentenced to 188 months in federal prison and five years of supervised release for conspiring to distribute methamphetamine, Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today.
Ireland previously pleaded guilty to a one-count federal indictment that also named two co-defendants: Justin R. Mason, 35, and Brianna N. Bare, 26, both also residents of Olney, Illinois. Bare was sentenced on December 27, 2018, to 87 months imprisonment and three years of supervised release. Mason was sentenced on January 22, 2019, to 262 months imprisonment and five years of supervised release.
The charged conspiracy took place from August 2017 to March 2018, in Richland County and elsewhere, and involved 50 grams or more of methamphetamine (Ice), or 500 grams or more of a mixture and substance containing methamphetamine.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
Massachusetts State Trooper Agrees to Plead Guilty in Overtime Abuse InvestigationRead the Press Release
BOSTON – A suspended Massachusetts State Police Trooper agreed to plead guilty in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).
Heath McAuliffe, 40, of Hopkinton, agreed to plead guilty pursuant to a plea agreement to one count of embezzlement from an agency receiving federal funds. A date for the plea hearing has not yet been scheduled.
According to court documents, McAuliffe was a Trooper assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90.
In 2016, McAuliffe earned approximately $164,680, which included approximately $60,908 in overtime pay. In 2015, McAuliffe earned approximately $180,215, which included approximately $83,496 in overtime pay.
McAuliffe was paid for overtime shifts that he did not work at all, for which he arrived late, and from which he left early. McAuliffe concealed his fraud by submitting fraudulent citations designed to create the appearance that he had worked overtime hours that he had not, and, falsely claimed in MSP paperwork and payroll entries that he had worked the entirety of his overtime shifts.
McAuliffe agreed to plead guilty to collecting $7,860 for overtime hours that he did not work between August of 2015 and August of 2016. Pursuant to the plea agreement, the government will recommendation a sentence of between six to twelve months incarceration.
The overtime in question involved the Accident and Injury Reduction Effort program (AIRE), which was intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers who were to target vehicles traveling at excessive speeds.
In 2016 and 2015, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
Thus far, eight MSP troopers have been charged in the ongoing investigation. Seven have previously pleaded guilty.
The charge of theft of government funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit are prosecuting the case.
The details contained in the court documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maple Heights man faces additional charges of making threats against the President and his family, as well as providing material support to al QaedaRead the Press Release
A superseding indictment was filed charging a Maple Heights man attempting to provide material support to al Qaeda, as well as making threats against the President, threats against the family of the President and false statements to law enforcement.
Demetrius Nathaniel Pitts, aka Abdur Raheem Rafeeq, aka Salah ad-Deen Osama Waleed, 49, has been in custody since July, when he was arrested after allegedly planning a terrorist attack in Cleveland. He was previously indicted on one count of attempting to provide material support to al Qaeda.
Pitts on June 15, 2018, did knowingly and willfully make a threat to kidnap and inflict bodily harm upon Donald J. Trump, specifically that he would “get” the President by cutting off the President’s head and hands, according to the indictment.
Pitts on June 15, 2018 also knowingly and willfully made threats to kidnap and inflict bodily harm upon members of the President’s family, specifically that “…a better way to get, to get him is to kill his kids. Kill his daughter, son-in-law. Kill ‘em all. He (the President) come out ‘cause you start killing his kids, chop their heads off…you send his kids back,” according to the indictment.
According to an affidavit filed in the case, between 2015 and 2017, Pitts expressed anti-American sentiments and expressed a desire to recruit people to kill Americans. The defendant expressed a desire to meet with an al Qaeda “brother” and in June he was introduced to an FBI employee acting in an undercover capacity (UCE), who Pitts believed was such a “brother.”
Pitts and the UCE met in Walton Hills, Ohio, where they discussed launching an attack for al Qaeda during the July 4th holiday.
Pitts said: “I’m trying to figure out something that would shake them up on the 4th of July.” He later stated: “What would hit them at their core? Blow up in the, have a bomb blow up in the 4th of July parade.”
Pitts and the UCE searched Google for a map of downtown Cleveland. After learning the fireworks would be launched from Voinovich Park, Pitts said: “Oh there you go. Oh yeah.” He was also pleased the park was near the U.S. Coast Guard station, the Army Corps of Engineers, and the Celebrezze Federal Building.
The meeting concluded with Pitts indicating to the UCE that he would travel to downtown Cleveland soon to take photographs and videotape footage as part of surveillance efforts of Voinovich Park and the U.S. Coast Guard station. He also expressed a desire to take a tour of the U.S. Coast Guard station to gain as much information as he could about the layout of the facility.
The UCE texted Pitts later on June 22 and where he indicated al Qaeda “brothers” would provide Pitts with a bus pass and cellular phone.
On June 25, Pitts met with an FBI confidential human source (CHS) in Maple Heights, Ohio, who provided Pitts with a bus pass and a phone Pitts could use to communicate with the UCE. The bus pass was provided to Pitts, as he requested, so he could travel to downtown Cleveland to conduct surveillance for the July 4th attack.
On June 26, Pitts contacted the UCE via text message and relayed that he had completed the reconnaissance of the designated spots in downtown Cleveland and that he desired to “destroy the government.”
Pitts also indicated he intended to travel to Philadelphia, since Philadelphia is his hometown and he knows it best. Pitts indicated it was his “job” to “go look at the base of the ground” and that it was up to other “brothers” to complete other parts of the job.
On June 27, Pitts met with the CHS and turned over the phone that contained the reconnaissance photos and videos, so they could be provided to the al Qaeda brothers.
Later on June 27, Pitts and the UCE met in Maple Heights then drove to downtown Cleveland, where they discussed the impending July 4th bombing.
“And I’m gonna be downtown when the – when the thing go off. I’m gonna be somewhere cuz I wanna see it go off,” Pitts said.
A search of the phone that Pitts provided to the CHS revealed that he made two videos in which he pledged allegiance. He stated, in part: “We serve Allah . . . We fight our enemies. We destroy them and destroy those who try to oppose…”
The phone also had four videos taken by Pitts that show him walking down East 9th Street in Cleveland, pointing out potential targets such as the federal building, the Coast Guard station and St. John’s Cathedral, which he said could be taken “off the map.”
On July 1, Pitts met with the UCE in Garfield Heights, Ohio, for Pitts to explain his plan for Philadelphia. Pitts said he planned to travel there to conduct reconnaissance for a future attack in Philadelphia. Pitts stated a truck bomb packed with explosives, such as the one used in Oklahoma City, Oklahoma, would be the best way to cause maximum damage.
Pitts was reminded by the UCE that people would die and body parts would by flying around. Pitts responded “I don’t care” and that he had “no regrets,” would be able to “go to sleep” and “I don’t give a (expletive).”
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This investigation is being conducted by the FBI-Cleveland Division’s Joint Terrorism Task. The case is being prosecuted by Assistant U.S. Attorneys Michelle Baeppler and Matthew Shepherd of the Northern District of Ohio, and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Man Pleads Guilty to $20 Million Fraud and Ponzi SchemeRead the Press Release
ALEXANDRIA, Va. – An Arlington man pleaded guilty today to orchestrating eight fraud schemes that resulted in total losses of approximately $20 million.
According to court documents, Todd Elliott Hitt, 54, solicited approximately $30 million from investors for a variety of real estate and venture capital investments in the Washington, D.C. area from 2014 through August 2018. The investments included Hitt’s solicitation of approximately $17 million from investors in order to purchase a five-story office building adjacent to a planned future stop on the Silver Line in Herndon. Hitt made false statements and material omissions to investors by failing to disclose that a significant portion of the monies raised were commingled with other unrelated investment projects, used for personal spending to support an extravagant lifestyle and new investor’s funds used to pay off old investors in a Ponzi-like scheme. Hitt’s fraudulent conduct resulted in investor losses of approximately $20 million.
Hitt pleaded guilty to a charge of securities fraud in and faces a maximum penalty of 20 years in prison and a fine of $5 million or twice the gross gain or loss, whichever is greater. He is scheduled to be sentenced on June 21. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorney Mark D. Lytle is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-43.
Man Carrying Prohibited 3D-Printed Gun Found with List of Lawmakers’ AddressesRead the Press Release
A Dallas man was sentenced today to 8 years in prison after officers caught him with a partially 3D-printed AR-15 rifle and a list of lawmakers’ addresses in his backpack, despite a court order that prohibited him from possessing a firearm, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
In August 2015, following a violent altercation with a live-in girlfriend, a county judge enacted a protective order against Eric Gerard McGinnis, then 39. Despite that order – which barred him from possessing firearms or ammunition for two years – Mr. McGinnis attempted to buy a semi-automatic rifle component at a federally licensed gun shop in June 2016. The prospective purchase was rejected after an NICS background check uncovered the order, and ATF reminded Mr. McGinnis he wasn’t allowed to have a gun.
Instead, Mr. McGinnis obtained a barrel, stock, upper receiver, and grip, then used a 3D printer to create a “lower receiver,” the gun’s firing mechanism, and assembled the parts to construct a short-barrel AR-15 style rifle.
In July 2017 – with just over one month left on his protective order – Mr. McGinnis took the 3D-printed gun to a wooded area just outside Dallas. Grand Prairie police officers, out on another call, heard three shots fired and eventually located him just off a major road. Ordered to put his hands up, Mr. McGinnis falsely claimed to be a member of the CIA. Body-cam video shows that officers directed him to kneel on the pavement, cuffed him, and shortly thereafter, inspected his backpack.
In the backpack, the officers discovered the partially 3D printed gun, loaded, and a list labeled “9/11/2001 list of American Terrorists.” The hit list – not included as evidence at trial but presented at sentencing – included office and home addresses of several federal lawmakers, both Democrat and Republican.
A subsequent forensic analysis of Mr. McGinnis’ electronic devices by U.S. Capitol Police suggests Mr. McGinnis had a strong interest in James Hodgkinson, the shooter who wounded Rep. Steve Scalise and several others at a GOP Congressional baseball practice in Virginia in June 2017, the federal prosecutor revealed at sentencing Wednesday.
In a jailhouse phone call to a family member, Mr. McGinnis admitted he’d “printed” part of the gun.
“I didn’t buy a gun, I built the gun,” he said in the recorded phone call. “The upper, I printed a lower, and I built it -- installed the trigger and did all that stuff. I built it.”
After a two-day trial presided over by Chief U.S. District Judge Barbara M.G. Lynn, a jury found McGinnis guilty of possessing an unregistered short barrel rifle and unlawfully possessing ammunition while subject to an active protective order.
This case, investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives with assistance from the Grand Prairie Police Department and U.S. Capitol Police, was brought as part of U.S. Attorney Erin Nealy Cox’s initiative to keep firearms out of the hands of domestic abusers. Assistant U.S. Attorneys Brian McKay and Rick Calvert prosecuted the case.
“When he realized he couldn’t legally purchase a firearm, Eric McGinnis circumvented our gun laws by 3D-printing his weapon, eliminating the need for a background check,” said Nealy Cox. “This case should send a message to prohibited persons contemplating acquiring guns by any method: this office is committed to keeping guns out of the hands of those who violate protective orders for domestic violence, no matter how the guns are obtained – by theft, purchase, or 3D printing.”
"Controls to determine if an individual is prohibited from purchasing firearms and ammunition worked," said Jeffrey C. Boshek II, Special Agent in Charge of ATF’s Dallas Field Division. “Mr. McGinnis applied evolving technology to by-pass those controls to manufacture an untraceable NFA weapon. The fact a prohibited person was able to manufacture an untraceable firearm with apparent ease and anonymity presents a significant challenge and major concern to law enforcement and our community.”
Mr. McGinnis is one of a number of defendants prosecuted for possessing firearms or ammunition after domestic violence convictions or while under protective orders in the Northern District of Texas.
Police body-cam footage of his arrest and audio of his jailhouse call are available upon request.
Livingston man sentenced in firearms caseRead the Press Release
BILLINGS—A Livingston resident who admitted illegally possessing a firearm was sentenced today to five years of probation, U.S. Attorney Kurt Alme said.
Cody Allen Viers, 36, pleaded guilty in October to being a prohibited person in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
Prosecutors said that on Feb. 13, 2018, law enforcement interviewed an individual about a 9mm semi-automatic pistol he had purchased earlier and had given to another person. Officers also interviewed Viers, who said he had bought the firearm and had provided it to the person law enforcement interviewed in February. Viers also admitted he was prohibited from possessing a firearm because of a previous conviction for partner or family member assault. A criminal history review found that Viers had two convictions for the crime, a misdemeanor.
Assistant U.S. Attorney Zeno Baucus prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Lame Deer man admits fatal stabbingRead the Press Release
BILLINGS—Lame Deer resident Darrell Lee Whiteman, Jr. admitted today that he fatally stabbed a person during an argument in March 2017, U.S. Attorney Kurt Alme said.
Whiteman, 29, pleaded guilty to voluntary manslaughter. Whiteman faces a maximum 15 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Susan Watters presided. Judge Watters set sentencing for June 21, 2019. Whiteman is detained.
Prosecutors said evidence would show that on March 4, 2017, Whiteman was at a Lame Deer residence, on the Northern Cheyenne Indian Reservation, drinking with others. Whiteman got into an argument with his girlfriend, and the victim told Whiteman to stop. Whiteman and the victim then got into a fight that was broken up by another person.
The victim went to the kitchen for a drink of water, and Whiteman grabbed a knife from the kitchen. Whiteman reached around another individual who was in between the two and stabbed the victim once in the chest. Whiteman left the residence and the victim later died.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI.
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Keithville felon pleads guilty to possessing pistolRead the Press Release
SHREVEPORT, La. – Michael Roy Reed, 44, of Keithville, Louisiana, pleaded guilty Tuesday before U.S. District Judge Elizabeth E. Foote to possession of a firearm by a convicted felon, U.S. Attorney David C. Joseph announced.
Shreveport Police received a call on January 23, 2018 from a concerned citizen about a Colt, Model: Mustang XSP, .380-caliber pistol, according to the guilty plea. The caller informed the police that he had received the firearm from Reed as payment for performing work on Reed’s truck. After investigating the matter further, police officers learned that the weapon was previously reported stolen and that Reed was a convicted felon.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Reed was convicted in Ouachita Parish on July 8, 2013 for illegal possession of stolen things, conspiracy to distribute cocaine and possession with intent to distribute methamphetamine. Reed was indicted September 27, 2018.
Michael Reed faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for June 14, 2019.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorneys Jessica D. Cassidy and Allison D. Bushnell are prosecuting the case.
Kanawha County Man Sentenced for Federal Drug ChargeRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man caught with approximately 259 grams of methamphetamine in August 2017 was sentenced today to 144 months in prison, announced United States Attorney Mike Stuart. Maurice Rashee Flint, 39, of Charleston, previously pled guilty plea to possession with the intent to distribute more than 50 grams of methamphetamine. Stuart commended the cooperative investigative efforts of the Kanawha County Sheriff’s Department’s STOP Team and the Metropolitan Drug Enforcement Network Team (MDENT), along with the Drug Enforcement Administration.
“Twelve years. Twelve years in federal prison,” said United States Attorney Mike Stuart. “Meth dealers are rampant throughout West Virginia and we are working closely with our law enforcement partners to get dealers like Flint off our streets. I want to thank my prosecutors, the Kanawha County Sheriff’s Department’s STOP Team, MDENT and DEA for excellent work in this matter.”
At his plea hearing in October, 2018, Flint admitted that on August 25, 2017, members of the Kanawha County Sheriff’s Department STOP Team and members of the Drug Enforcement Administration executed a search warrant at a motel he had been staying at in St. Albans, West Virginia. During the search, officers found approximately 259 grams of methamphetamine that Flint admitted he possessed with the intent to distribute. Flint also admitted that on four previous occasions between April 2017 and August 2017, he distributed quantities of heroin and methamphetamine to a confidential informant working with the local law enforcement agencies.
Assistant United States Attorney Timothy D. Boggess handled the prosecution. United States District Judge Irene C. Berger imposed the sentence.
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Jury Finds Volunteer Sheriff's Deputy Guilty of Extortion, Obtaining Stolen ATV and FirearmsRead the Press Release
LITTLE ROCK— A volunteer Sheriff’s Deputy with the Arkansas County Sheriff’s Office has been convicted of extorting confidential informants to steal an ATV and firearms.
Cody Hiland, U.S. Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI’s Little Rock Field Office, announced that a federal jury found Charles David Chastain, 48, of Stuttgart, guilty of Hobbs Act extortion, attempted Hobbs Act extortion, and receipt of a firearm with intent to commit a felony.
United States District Judge Leon Holmes presided over the two-day trial, which concluded Tuesday with the jury verdict finding Chastain guilty on all counts. Chastain will be sentenced by Judge Holmes at a later date.
“Law enforcement in this district work tirelessly and selflessly,” said Hiland. “They respond at a moment’s notice and are willing to sacrifice their lives for total strangers because of a calling to serve their fellow man.”
“The actions of one officer are not an indictment against an entire profession,” Hiland continued. “However, no individual is above the law, and our office will seek justice wherever injustice is found, especially with those we trust to serve and protect our communities. This guilty verdict would not have been possible without the hard work of our Assistant United States Attorneys.”
Chastain was employed as a volunteer Auxiliary Sheriff’s Deputy for the Arkansas County Sheriff’s Office. He was assigned to the Tri-County Drug Task Force, where he utilized confidential informants to develop drug cases in Arkansas County and surrounding areas.
Testimony during the trial established that two confidential informants worked for Chastain in an effort to reduce criminal charges. In the fall of 2017, Chastain asked those informants to steal an ATV for him. One of the informants went to a duck hunting club in Clarendon and stole a Browning Edition, Polaris Ranger 900 ATV valued at just under $25,000. The informant stole the ATV in exchange for favorable treatment from Chastain concerning criminal charges, but the informant also reported the theft to the FBI. Testimony indicated that both informants were concerned Chastain would refuse to give them credit for their cooperation if they did not meet his demands.
Trial testimony also indicated that in December of 2017, Chastain asked one of the informants to commit another burglary, this time with the goal of stealing firearms from a storage unit in Arkansas County. Text messages admitted at trial showed that the informant asked if there were cameras at the storage unit, and Chastain replied, “Long sleeve shirts and a mask would make it a moot point.” The informant did not commit that burglary, and instead worked with the FBI and the Arkansas State Police to obtain three firearms to offer for sale to Chastain.
Evidence at trial showed that the informant told Chastain the firearms were stolen and included a Chinese Type 56-1, which is similar to an AK-47 rifle, a Colt M16 A1, and a Winchester M14. Chastain agreed to buy the purportedly stolen firearms from the informant for $300. He was arrested shortly thereafter with those rifles in his possession. Investigators later executed a search warrant at Chastain’s shop, where they located the stolen Polaris Ranger.
The statutory penalty for Hobbs Act extortion, as well as attempted Hobbs Act extortion, is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than three years of supervised release. The statutory penalty for receipt of a firearm with intent to commit a felony is not more than 10 years imprisonment, not more than a $250,000 fine, and not more than three years of supervised release.
The investigation was conducted by the FBI, with assistance from the Arkansas State Police.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at: http://www.justice.gov/edarTwitter: @EDARNEWS
Jury Convicts San Diego Man of Traveling to Portland for Sex with MinorRead the Press Release
EUGENE, Ore.—A federal jury found David George Hopkins, 60, of San Diego, California, guilty today for traveling with the intent to engage in sex with a minor and other related charges.
“This case is another example of the extraordinary lengths some will go in an attempt to victimize children,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “It is also an example of the dogged determination of federal law enforcement to intercept individuals who seek to victimize children. I hope this conviction will serve as a warning to would-be child predators who believe they can pursue minors online without consequences.”
“Today’s conviction started with one person who was so concerned that she reported her disturbing interactions with Mr. Hopkins to law enforcement. Her willingness to step forward was critical to our ability to protect children from this predator. I would ask anyone with such information in the future to contact the nearest FBI office or submit tips online at https://tips.fbi.gov,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
According to court documents and information shared at trial, on June 9, 2017, Hopkins traveled from San Diego to Portland, Oregon believing he would be able to have sex with a 13-year-old girl named Paula along with her mother, Norma, and her mother’s friend, Ana, with whom he had been chatting online. Unbeknownst to Hopkins, he had been chatting with an FBI Special Agent acting as both Norma and Paula, and with a person using the alias Ana.
Hopkins and Ana began chatting online in 2012, and during one of the conversations, Hopkins raised the topic of having sex with a minor female in Peru and sent Ana a photo of what was purportedly him receiving oral sex from a minor.
In February 2017, Hopkins again contacted Ana and they began communicating using Skype and Facebook. In their first few conversations after reconnecting, Hopkins disclosed more details about his sexual relations with a minor in Peru. He also claimed to have had similar illicit contact with a minor in Panama. Hopkins later wrote, “did it bother u i [sic] had sex with young girls?” Hopkins did not present his conduct as a fantasy and Ana did not believe it was.
Concerned by the information shared with her, Ana reported Hopkins to the Eugene Police Department who referred the matter to the FBI. In March 2017, Ana met with an FBI Special Agent and agreed to cooperate with an investigation of Hopkins.
Ana continued chatting with Hopkins and their conversations grew increasingly more detailed and graphic as Hopkins shared information about his claimed past sexual experiences with minors and his desire to continue such behavior. In one conversation, Ana mentioned her fictitious Peruvian friend Norma. Hopkins asked if they could all have sex together. Ana also mentioned that Norma had a daughter named Paula. Hopkins also expressed an interest in having sex with Paula.
Ana told Hopkins that Norma had agreed to let him have sex with Paula. Shortly thereafter, Hopkins began communicating directly with Norma, the FBI Special Agent. The conversation quickly turned sexual and they discussed Hopkins flying to Oregon. In subsequent conversations, Hopkins began asking Norma about having sex with Paula, and, later, began communicating online directly with Paula. Hopkins chatted with Paula about having sex with her, describing in detail what he wanted to do.
In June 2017, Hopkins flew from San Diego to Portland with intent to engage in sexual conduct with Paula. He was met and arrested by the FBI at Portland International Airport upon his arrival. Hopkins claims of abusing children have not been corroborated.
In an indictment returned on June 20, 2018, a federal grand jury in Eugene charged Hopkins with one count each of attempting to use a minor to produce a visual depiction of sexually explicit conduct, attempting to coerce or entice a minor, traveling with the intent to engage in illicit sexual conduct and transferring of obscene material to a minor.
Hopkins will be sentenced on May 23, 2019, by U.S. District Court Judge Michael J. McShane.
This case was investigated by the FBI with assistance from the Eugene Police Department. It was prosecuted by Amy Potter and Jeff Sweet, Assistant U.S. Attorneys for the District of Oregon.
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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at https://tips.fbi.gov.
Jefferson Parish Building Inspector Charged with Using Facility of Interstate Commerce to Promote Illegal ActivityRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ALTON MCCLINTON, age 54, a resident of New Orleans, Louisiana, was charged yesterday in a one-count bill of information with using a facility of interstate commerce with the intent to promote unlawful activity, in violation of 18 U.S.C. ' 1952(a)(3).
According to the bill of information, between at least January 2014, and August 18, 2017, MCCLINTON, a building inspector for the Jefferson Parish (Louisiana) Department of Inspection and Code Enforcement, used the Internet to promote, manage, establish, carry on, and facilitate the promotion, management, establishment, and carrying on of an unlawful activity, that is, public bribery, in violation of Title 14, Louisiana Revised Statutes, Section 118, and thereafter performed and attempted to perform an act to promote, manage, establish, carry on, and facilitate the promotion, management, establishment, and carrying on of such unlawful activity. Specifically, MCCLINTON, solicited and accepted bribe money from individuals seeking inspection reports in exchange for issuing either (1) a report reflecting that no zoning violation had occurred when, in fact, one had occurred or (2) an inspection report reflecting that MCCLINTON had inspected a particular building and that the building complied with parish building code regulations MCCLINTON when, in fact, MCCLINTON had not actually inspected the building.
If convicted, MCCLINTON faces a maximum term of five (5) years in prison, a fine of up to $250,000.00, up to three (3) years of supervised release after imprisonment, and a mandatory $100 special assessment.
U. S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter, with the assistance of the Jefferson Parish Office of the Inspector General. Assistant United States Attorney Jordan Ginsberg, supervisor of the Public Corruption Unit, is in charge of the prosecution.
Jackson Man Pleads Guilty under Project EJECT to Armed CarjackingRead the Press Release
Jackson, Miss – Justin Darby, 37, of Jackson, entered a guilty plea yesterday before U.S. District Judge Henry T. Wingate, to one count of carjacking and one count of using a firearm to facilitate the carjacking, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation.
On December 11, 2017, in Hinds County, officers with the Jackson Police Department were dispatched to the intersection of Lynch St. and Highway 80 in Jackson. Justin Darby had crashed into the rear of another vehicle at the intersection, forced the driver of that vehicle out of her car and fled the scene. He was carrying a military style rifle when he carjacked the vehicle. He later abandoned the vehicle and was subsequently arrested.
Darby will be sentenced by Judge Wingate on May 13, 2019, at 9:30 a.m. He faces a maximum penalty of 15 years in prison and a $250,000 fine for carjacking, and a minimum penalty of not less than 7 years in prison and a $250,000 fine for using a firearm to facilitate the carjacking. The sentences would run consecutively.
The Federal Bureau of Investigation and the Jackson Police Department investigated the case. It was prosecuted by Assistant United States Attorneys Lynn Murray and Bert Carraway.
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 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.
Illegal Alien Sentenced to Prison for Document FraudRead the Press Release
A Mexican man who used false identification documents to obtain jobs was sentenced today to more than three months in federal prison.
Sergio Castro-Ramirez, age 40, a citizen of Mexico illegally present in the United States and residing in Waterloo, Iowa, received the prison term after a December 17, 2018, guilty plea to two counts of unlawful use of identification documents and two counts of misuse of a social security number.
At the guilty plea, Castro-Ramirez admitted he used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed Employment Eligibility Verification Forms (Form I-9), state and federal W-4 tax forms, and other employment paperwork on April 2, 2015, and October 18, 2016, at businesses in Waverly and Shell Rock, Iowa. The Social Security number and the Alien Registration number on the “green card” which Castro-Ramirez claimed as his own were assigned other people. Castro-Ramirez also falsely claimed to be a lawful permanent resident of the United States.
In August 1996, Castro-Ramirez was first apprehended by immigration agents for being illegally present in the United States and illegally working in Marshalltown, Iowa, and was returned to Mexico. Castro-Ramirez was caught by U.S. Border Patrol agents illegally present in the United States four additional times between February 1997 and April 2001, and returned to Mexico each time. Castro-Ramirez returned illegally to the United States and was convicted of operating while intoxicated in Wapello County, Iowa, in 2003.
Castro-Ramirez most recently came to the attention of immigration officials following his arrest in July 2018 in Black Hawk County, Iowa, for domestic abuse assault causing bodily injury. On October 31, 2018, Castro-Ramirez was convicted of that offense in state court and was taken into immigration custody on November 1, 2018.
Castro-Ramirez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Castro-Ramirez was sentenced to 93 days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Castro-Ramirez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
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-2065-CJW.
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Husband and Wife Charged with Conspiring to Defraud the United States; Wife Charged with Aiding and Assisting to File False Tax ReturnsRead the Press Release
A Waterford, Michigan husband and wife were arraigned this week on a number of charges including conspiracy to defraud the United States, fraudulent withholdings of records and falsification of records in bankruptcy. In addition, the wife was charged with aiding and assisting the filing of false tax returns, U.S. Attorney Matthew Schneider announced today.
Joining Schneider in the announcement was Manny Muriel, Special Agent in Charge of the Detroit Office of the Internal Revenue Service - Criminal Investigation.
The arraignment was heard before U.S. Magistrate Judge Anthony Patti
According to the indictment, from 2012 through 2015, Stephanie Sumner of Waterford, Michigan was employed as the Director of Elections by the City of Oak Park. Part of her responsibilities there was to submit invoices for payment by the City of Oak Park for election related services. Stephanie Sumner created false City of Oak Park invoices listing her husband, Michael Sumner, as a vendor-payee. Only months before the scheme, in September 2012, the couple filed for Chapter 13 bankruptcy. From about January, 2013 to February 2015, checks from the City of Oak Park totaling over $430,000 in payment of the fraudulent invoices which were deposited by the couple into a shared bank account used by them.
The City of Oak Park generated Forms 1999 (Independent Contractor tax forms) which would have been required to be turned over to the Chapter 13 Trustee as part of their yearly tax information, but they failed to do so. They also did not report the embezzled funds on their 1040 tax form transcripts and 1040s. Stephanie Sumner failed to report the embezzled funds on their 2013, 2014 and 2015 federal tax returns when she knew she should have included them.
The maximum penalty for conspiracy to defraud the United States is imprisonment of no more than five years and a fine of not more than $250,000, while aiding or assisting in filing false tax returns is imprisonment of no more than three years and a fine of no more than $100,000.
An indictment is only a charge and is not evidence of guilt. Every defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case was investigated by agents of the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by AUSA John Neal and SAUSA Richard Roble.
Heppner Physician Pleads Guilty to Tax EvasionRead the Press Release
PORTLAND, Ore.—On February 12, 2019, Kenneth Wenberg, 72, a medical doctor from Heppner, Oregon, pleaded guilty to a single count of tax evasion. The government demonstrated it could prove Dr. Wenberg failed to report income resulting in a tax loss of approximately $187,000.
According to court documents, Dr. Wenberg created nominee entities to hide assets and income he personally earned while serving as a physician at the Morrow County Health District (MCHD) and Urgent Health Care Center (UHCC) in Heppner. Dr. Wenberg instructed MDHD and UHCC to make payments for services he performed directly to sham entities to avoid income tax liabilities. Dr. Wenberg opened numerous bank accounts and purchased real property in the names of his nominee entities. He also paid for his and his family’s personal living expenses out of the nominee accounts. Dr. Wenberg failed to report his income to the IRS, despite knowing he owed taxes.
Wenberg faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on June 6, 2019 before U.S. District Court Judge Marco A. Hernandez.
As part of the plea agreement, Wenberg has agreed to pay restitution to the IRS in the full amount of the tax loss as determined by the court after sentencing.
This case was investigated by IRS-Criminal Investigation (IRS-CI) and is being prosecuted by Clemon D. Ashley and Seth D. Uram, Assistant U.S. Attorneys for the District of Oregon.
The U.S. Attorney’s Office and IRS-CI remind Oregonians that tax day is Monday, April 15, 2019. For tips to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit the IRS website: https://www.irs.gov/help-resources
Gary Man Charged in Criminal Complaint with Distribution of Crack Cocaine, Possession with Intent to Distribute Crack Cocaine, and Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
HAMMOND- Bryant Porter, 25, of Gary, Indiana, was charged in a criminal complaint with distribution of crack cocaine, possession with intent to distribute crack cocaine, and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
The criminal complaint alleges that following Porter’s distribution of crack cocaine on four occasions, law enforcement executed a search warrant on his Gary residence and vehicle on February 13, 2019, and recovered approximately 65 gross grams of crack cocaine and twelve firearms.
U.S. Attorney Kirsch said, “This case represents teamwork and cooperation between law enforcement agencies. Our partnerships are some of the best and we will use them to focus on illegal narcotics and violent crime.”
The United States Attorney’s Office emphasizes that a criminal complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Drug Enforcement Administration and Porter County Multi-Enforcement Group. This case is being prosecuted by Assistant United States Attorney Caitlin M. Padula.
Garryowen man sentenced in assaultRead the Press Release
BILLINGS—Garryowen resident Tyrone Joe Oldelk, who admitted beating a person, was sentenced today to prison and to three years of supervised release, U.S. Attorney Kurt Alme said.
Oldelk, 30, pleaded guilty in October to assault resulting in substantial bodily injury of a dating partner.
U.S. District Judge Susan Watters presided. Judge Watters sentenced Oldelk to 24 months in prison and gave him credit for three months he served in tribal jail for the same offense, for a net sentence of 21 months.
Prosecutors said evidence showed that Oldelk assaulted the victim on Nov. 18, 2017 in Garryowen on the Crow Indian Reservation after he got drunk and the two began arguing. Oldelk punched, choked and kicked the victim on various parts of her body over several hours and stopped when another person entered the room. The beating resumed the next morning and stopped when the victim, attempting to defend herself, hit Oldelk in the face and broke his nose.
Assistant U.S. Attorney Lori Suek prosecuted the case, which was investigated by the FBI.
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Former U.S. Counterintelligence Agent Charged with Espionage on Behalf of Iran; Four Iranians Charged with a Cyber Campaign Targeting Her Former ColleaguesRead the Press Release
Monica Elfriede Witt, 39, a former U.S. service member and counterintelligence agent, has been indicted by a federal grand jury in the District of Columbia for conspiracy to deliver and delivering national defense information to representatives of the Iranian government. Witt, who defected to Iran in 2013, is alleged to have assisted Iranian intelligence services in targeting her former fellow agents in the U.S. Intelligence Community (USIC). Witt is also alleged to have disclosed the code name and classified mission of a U.S. Department of Defense Special Access Program. An arrest warrant has been issued for Witt, who remains at large.
The same indictment charges four Iranian nationals, Mojtaba Masoumpour, Behzad Mesri, Hossein Parvar and Mohamad Paryar (the “Cyber Conspirators”), with conspiracy, attempts to commit computer intrusion and aggravated identity theft, for conduct in 2014 and 2015 targeting former co-workers and colleagues of Witt in the U.S. Intelligence Community. The Cyber Conspirators, using fictional and imposter social media accounts and working on behalf of the Iranian Revolutionary Guard Corps (IRGC), sought to deploy malware that would provide them covert access to the targets’ computers and networks. Arrest warrants have been issued for the Cyber Conspirators, who also remain at large.
The announcement was made by Assistant Attorney General for National Security John Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, Executive Assistant Director for National Security Jay Tabb of the FBI, U.S. Treasury Secretary Steven Mnuchin, Special Agent Terry Phillips of the Air Force Office of Special Investigations, and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office.
“Monica Witt is charged with revealing to the Iranian regime a highly classified intelligence program and the identity of a U.S. Intelligence Officer, all in violation of the law, her solemn oath to protect and defend our country, and the bounds of human decency,” said Assistant Attorney General Demers. “Four Iranian cyber hackers are also charged with various computer crimes targeting members of the U.S. intelligence community who were Ms. Witt’s former colleagues. This case underscores the dangers to our intelligence professionals and the lengths our adversaries will go to identify them, expose them, target them, and, in a few rare cases, ultimately turn them against the nation they swore to protect. When our intelligence professionals are targeted or betrayed, the National Security Division will relentlessly pursue justice against the wrong-doers.”
“This case reflects our firm resolve to hold accountable any individual who betrays the public trust by compromising our national security,” said U.S. Attorney Liu. “Today’s announcement also highlights our commitment to vigorously pursue those who threaten U.S. security through state-sponsored hacking campaigns.”
“The charges unsealed today are the result of years of investigative work by the FBI to uncover Monica Witt’s betrayal of the oath she swore to safeguard America’s intelligence and defense secrets” said Executive Assistant Director for National Security Tabb. “This case also highlights the FBI’s commitment to disrupting those who engage in malicious cyber activity to undermine our country’s national security. The FBI is grateful to the Department of Treasury and the United States Air Force for their continued partnership and assistance in this case.”
“Treasury is taking action against malicious Iranian cyber actors and covert operations that have targeted Americans at home and overseas as part of our ongoing efforts to counter the Iranian regime’s cyber-attacks,” said Treasury Secretary Steven Mnuchin. “Treasury is sanctioning New Horizon Organization for its support to the IRGC-QF. New Horizon hosts international conferences that have provided Iranian intelligence officers a platform to recruit and collect damaging information from attendees, while propagating anti-Semitism and Holocaust denial. We are also sanctioning an Iran-based company that has attempted to install malware to compromise the computers of U.S. personnel.”
“The alleged actions of Monica Witt in assisting a hostile nation are a betrayal of our nation’s security, our military, and the American people,” said Special Agent Phillips. “While violations like this are extremely rare, her actions as alleged are an affront to all who have served our great nation.”
“This investigation exemplifies the tireless work the agents and analysts of the FBI do each and every day to bring a complex case like this to fruition,’ said Assistant Director in Charge McNamara. “Witt's betrayal of her country and the actions of the cyber criminals - at the behest of the IRGC - could have brought serious damage to the United States, and we will not stand by and allow that to happen. The efforts by the Iranian government to target and harm the U.S. will not be taken lightly, and the FBI will continue our work to hold those individuals or groups accountable for their actions.”
According to the allegations contained in the indictment unsealed today:
Monica Witt’s Espionage
Monica Witt, a U.S. citizen, was an active duty U.S. Air Force Intelligence Specialist and Special Agent of the Air Force Office of Special Investigations, who entered on duty in 1997 and left the U.S. government in 2008. Monica Witt separated from the Air Force in 2008 and ended work with DOD as a contractor in 2010. During her tenure with the U.S. government, Witt was granted high-level security clearances and was deployed overseas to conduct classified counterintelligence missions.
In Feb. 2012, Witt traveled to Iran to attend the Iranian New Horizon Organization’s “Hollywoodism” conference, an IRGC-sponsored event aimed at, among other things, condemning American moral standards and promoting anti-U.S. propaganda. Through subsequent interactions and communications with a dual United States-Iranian citizen referred to in the indictment as Individual A, Witt successfully arranged to re-enter Iran in Aug. 2013. Thereafter, Iranian government officials provided Witt with a housing and computer equipment. She went on to disclose U.S. classified information to the Iranian government official. As part of her work on behalf of the Iranian government, she conducted research about USIC personnel that she had known and worked with, and used that information to draft “target packages” against these U.S. agents.
Iranian Hacking Efforts Targeting Witt’s Former Colleagues
Beginning in late 2014, the Cyber Conspirators began a malicious campaign targeting Witt’s former co-workers and colleagues. Specifically, Mesri registered and helped manage an Iranian company, the identity of which is known to the United States, which conducted computer intrusions against targets inside and outside the United States on behalf of the IRGC. Using computer and online infrastructure, in some cases procured by Mesri, the conspiracy tested its malware and gathered information from target computers or networks, and sent spearphishing messages to its targets. Specifically, between Jan. and May 2015, the Cyber Conspirators, using fictitious and imposter accounts, attempted to trick their targets into clicking links or opening files that would allow the conspirators to deploy malware on the target’s computer. In one such instance, the Cyber Conspirators created a Facebook account that purported to belong to a USIC employee and former colleague of Witt, and which utilized legitimate information and photos from the USIC employee’s actual Facebook account. This particular fake account caused several of Witt’s former colleagues to accept “friend” requests.
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The case is being investigated by the FBI’s Washington Field Office with assistance from the Air Force Office of Special Investigations. The prosecution is being handled by Assistant U.S. Attorneys Deborah Curtis, Jocelyn Ballantine and Luke Jones of the U.S. Attorney’s Office for the District of Columbia with assistance from Trial Attorney Evan N. Turgeon of the National Security Division’s Counterintelligence and Export Control Section.
Former U.S. Counterintelligence Agent Charged with Espionage on Behalf of Iran; Four Iranians Charged with a Cyber Campaign Targeting Her Former ColleaguesRead the Press Release
WASHINGTON – Monica Elfriede Witt, 39, a former U.S. service member and counterintelligence agent, has been indicted by a federal grand jury in the District of Columbia for conspiracy to deliver and delivering national defense information to representatives of the Iranian government. Witt, who defected to Iran in 2013, is alleged to have assisted Iranian intelligence services in targeting her former fellow agents in the U.S. Intelligence Community (USIC). Witt is also alleged to have disclosed the code name and classified mission of a U.S. Department of Defense Special Access Program. An arrest warrant has been issued for Witt, who remains at large.
The same indictment charges four Iranian nationals, Mojtaba Masoumpour, Behzad Mesri, Hossein Parvar and Mohamad Paryar (the “Cyber Conspirators”), with conspiracy, attempts to commit computer intrusion and aggravated identity theft, for conduct in 2014 and 2015 targeting former co-workers and colleagues of Witt in the U.S. Intelligence Community. The Cyber Conspirators, using fictional and imposter social media accounts and working on behalf of the Iranian Revolutionary Guard Corps (IRGC), sought to deploy malware that would provide them covert access to the targets’ computers and networks. Arrest warrants have been issued for the Cyber Conspirators, who also remain at large.
The announcement was made by Assistant Attorney General for National Security John Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, Executive Assistant Director for National Security Jay Tabb of the FBI, U.S. Treasury Secretary Steven Mnuchin, Special Agent Terry Phillips of the Air Force Office of Special Investigations, and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office.
“Monica Witt is charged with revealing to the Iranian regime a highly classified intelligence program and the identity of a U.S. Intelligence Officer, all in violation of the law, her solemn oath to protect and defend our country, and the bounds of human decency,” said Assistant Attorney General Demers. “Four Iranian cyber hackers are also charged with various computer crimes targeting members of the U.S. intelligence community who were Ms. Witt’s former colleagues. This case underscores the dangers to our intelligence professionals and the lengths our adversaries will go to identify them, expose them, target them, and, in a few rare cases, ultimately turn them against the nation they swore to protect. When our intelligence professionals are targeted or betrayed, the National Security Division will relentlessly pursue justice against the wrong-doers.”
“This case reflects our firm resolve to hold accountable any individual who betrays the public trust by compromising our national security,” said U.S. Attorney Liu. “Today’s announcement also highlights our commitment to vigorously pursue those who threaten U.S. security through state-sponsored hacking campaigns.”
“The charges unsealed today are the result of years of investigative work by the FBI to uncover Monica Witt’s betrayal of the oath she swore to safeguard America’s intelligence and defense secrets” said Executive Assistant Director for National Security Tabb. “This case also highlights the FBI’s commitment to disrupting those who engage in malicious cyber activity to undermine our country’s national security. The FBI is grateful to the Department of Treasury and the United States Air Force for their continued partnership and assistance in this case.”
“Treasury is taking action against malicious Iranian cyber actors and covert operations that have targeted Americans at home and overseas as part of our ongoing efforts to counter the Iranian regime’s cyber-attacks,” said Treasury Secretary Steven Mnuchin. “Treasury is sanctioning New Horizon Organization for its support to the IRGC-QF. New Horizon hosts international conferences that have provided Iranian intelligence officers a platform to recruit and collect damaging information from attendees, while propagating anti-Semitism and Holocaust denial. We are also sanctioning an Iran-based company that has attempted to install malware to compromise the computers of U.S. personnel.”
“The alleged actions of Monica Witt in assisting a hostile nation are a betrayal of our nation’s security, our military, and the American people,” said Special Agent Phillips. “While violations like this are extremely rare, her actions as alleged are an affront to all who have served our great nation.”
“This investigation exemplifies the tireless work the agents and analysts of the FBI do each and every day to bring a complex case like this to fruition,’ said Assistant Director in Charge McNamara. “Witt's betrayal of her country and the actions of the cyber criminals - at the behest of the IRGC - could have brought serious damage to the United States, and we will not stand by and allow that to happen. The efforts by the Iranian government to target and harm the U.S. will not be taken lightly, and the FBI will continue our work to hold those individuals or groups accountable for their actions.”
According to the allegations contained in the indictment unsealed today:
Monica Witt’s Espionage
Monica Witt, a U.S. citizen, was an active duty U.S. Air Force Intelligence Specialist and Special Agent of the Air Force Office of Special Investigations, who entered on duty in 1997 and left the U.S. government in 2008. Monica Witt separated from the Air Force in 2008 and ended work with DOD as a contractor in 2010. During her tenure with the U.S. government, Witt was granted high-level security clearances and was deployed overseas to conduct classified counterintelligence missions.
In Feb. 2012, Witt traveled to Iran to attend the Iranian New Horizon Organization’s “Hollywoodism” conference, an IRGC-sponsored event aimed at, among other things, condemning American moral standards and promoting anti-U.S. propaganda. Through subsequent interactions and communications with a dual United States-Iranian citizen referred to in the indictment as Individual A, Witt successfully arranged to re-enter Iran in Aug. 2013. Thereafter, Iranian government officials provided Witt with a housing and computer equipment. She went on to disclose U.S. classified information to the Iranian government official. As part of her work on behalf of the Iranian government, she conducted research about USIC personnel that she had known and worked with, and used that information to draft “target packages” against these U.S. agents.
Iranian Hacking Efforts Targeting Witt’s Former Colleagues
Beginning in late 2014, the Cyber Conspirators began a malicious campaign targeting Witt’s former co-workers and colleagues. Specifically, Mesri registered and helped manage an Iranian company, the identity of which is known to the United States, which conducted computer intrusions against targets inside and outside the United States on behalf of the IRGC. Using computer and online infrastructure, in some cases procured by Mesri, the conspiracy tested its malware and gathered information from target computers or networks, and sent spearphishing messages to its targets. Specifically, between Jan. and May 2015, the Cyber Conspirators, using fictitious and imposter accounts, attempted to trick their targets into clicking links or opening files that would allow the conspirators to deploy malware on the target’s computer. In one such instance, the Cyber Conspirators created a Facebook account that purported to belong to a USIC employee and former colleague of Witt, and which utilized legitimate information and photos from the USIC employee’s actual Facebook account. This particular fake account caused several of Witt’s former colleagues to accept “friend” requests.
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The case is being investigated by the FBI’s Washington Field Office with assistance from the Air Force Office of Special Investigations. The prosecution is being handled by Assistant U.S. Attorneys Deborah Curtis, Jocelyn Ballantine and Luke Jones of the U.S. Attorney’s Office for the District of Columbia with assistance from Trial Attorney Evan N. Turgeon of the National Security Division’s Counterintelligence and Export Control Section.
Former Substance Abuse Treatment Counselor Pleads Guilty to Distribution of FentanylRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that David Reeves, 51, of Beckley, a former substance abuse treatment counselor, pled guilty to illegal distribution of fentanyl. Stuart commended the investigative work of the Drug Enforcement Administration.
As part of his plea, Reeves admitted that he had an inappropriate relationship with a patient at Charleston Treatment Center (CTC), where he worked as a counselor from 2016 through October 2018. Reeves admitted to giving the patient fentanyl patches he had stolen from his wife’s supply, and at the time he gave the patient the fentanyl, he knew the patient was being treated for opioid addiction at CTC.
“Those with a substance use disorder need treatment and support,” said United States Attorney Mike Stuart. “It is unconscionable and intolerable for anyone in a position to help those with substance use disorder to instead further feed their addiction.”
Reeves faces up to 20 years in prison when he is sentenced on May 15, 2019. United States District Judge Irene C. Berger is presiding over the case. Assistant United States Attorney Haley Bunn is handling the prosecution.
This prosecution is the result of the formation of the Opioid Fraud Abuse and Detection Unit (OFADU), a Department of Justice initiative that uses data to identify and prosecute individuals that are contributors to the national opioid crisis. The Southern District of West Virginia is one of 12 districts nationally to participate in the pilot program.
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Former Kanawha County Deputy Sheriff Sentenced for Lying to the FBIRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that former Kanawha County Deputy Sheriff Robert Dwight Evans, 52, of Boomer was sentenced today to three years of probation for lying to the FBI. Stuart commended the investigative efforts of the FBI and the Kanawha County Sheriff’s Department.
“A trusted law enforcement officer aiding and abetting a drug trafficking organization. Tragic,” said United States Attorney Mike Stuart. “No one is immune from the opioid epidemic. The brave men and women of law enforcement are on the front lines of this battle every single day. They are heroes on the front lines of this battle. Evan’s actions were reckless, dangerous, and risked the very lives of those he swore to protect.”
Evans pled guilty in October 2018, admitting that he lied to an FBI agent about buying opioid pain medication from a target of an FBI drug trafficking investigation. During the Spring and Summer of 2017, the FBI conducted an investigation of a large-scale drug trafficking organization operating in Kanawha and Fayette Counties. During that investigation, agents searched the telephone of one of the targets of investigation and recovered text messages between that dealer and Evans which revealed that Evans had been buying pills from that individual for several months. Agents also learned that Evans had run license plate numbers and Vehicle Identification Numbers (VINs) at the request of members and other associates of the organization.
On June 28, 2017, FBI agents confronted Evans at his residence and asked him about his involvement with the targets of the investigation. He admitted conducting license plate checks but denied buying pills from any member of the organization. The Kanawha County Sheriff’s Department launched an internal investigation of Evans during which he resigned his position.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Joshua C. Hanks handled the prosecution.
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Former Justice of West Virginia Supreme Court of Appeals Sentenced for FraudRead the Press Release
CHARLESTON, W.Va. -- Allen H. Loughry II, 48, of Charleston, West Virginia, a former Justice of the Supreme Court of Appeals of West Virginia, was sentenced to 24 months in prison by Senior United States District Judge John T. Copenhaver, Jr., announced United States Attorney Mike Stuart. Loughry was also ordered to pay restitution totaling $1,273 to the State of West Virginia and the Pound Civil Justice Institute. After an eleven-day trial in October 2018, a federal jury found Loughry guilty of one count of mail fraud, seven counts of wire fraud, and two counts of lying to the Federal Bureau of Investigation. Agents with the FBI and the West Virginia Commission on Special Investigations conducted the investigation.
“Today is an important day. It is important for the people of West Virginia, in restoring the confidence of our citizens in the West Virginia Supreme Court, and in reaffirming the rule of law and the administration of justice,” said United States Attorney Mike Stuart. “Our system proved that it works. Arguably more important than any other part of the criminal justice system, sentencing is a reflection of our values as a society. The goals of sentencing are inherently contradictory and always involve a balancing of competing goals. These three goals are deterrence, denunciation, and rehabilitation. I want to thank my prosecution team, defense counsel and the jury for their tireless but critical roles in ensuring a just and fair result. I reiterate my amazing respect for the majesty of our system of justice – albeit imperfect it is the finest system known to mankind and the envy of the world. The preservation of liberty is best maintained through the confidence of the people in our system of fair and equal justice.”
Stuart continued, “I said it before and I will say it again, there’s no such thing as a little bit of public corruption. It is a cancer that erodes the public’s confidence in government and undermines the rule of law. Integrity and honesty need not be exceptions but, rather, should be the standard we expect from our public servants. To quote Mr. Loughry, as stated in his book: ‘It is essential that people have the absolute confidence in the integrity and impartiality of our system of justice.’ Today, with the sentence of Mr. Loughry, our system of justice took a big step in furthering the people’s confidence.”
"Public corruption is a betrayal of the public's sacred trust," said FBI Special Agent in Charge Robert Jones. "There is no level of acceptable corruption. The FBI will work tirelessly to make sure those in power positions uphold the law and are held to the highest standards."
Loughry’s convictions resulted from fraudulent activity while he was a sitting Justice on the Supreme Court. The mail fraud conviction stemmed from his defrauding the Pound Civil Justice Institute of approximately $400 in the summer of 2014, when he claimed mileage to attend a conference in Baltimore, Maryland, as if he had driven his own personal vehicle when in fact he drove a Supreme Court vehicle. The seven wire fraud convictions related to Loughry’s using a government fuel card to buy gasoline for travel that was not official business. Two of those wire fraud convictions, Counts 5 and 10 of the Second Superseding Indictment, involved purchases of gasoline by Loughry late at night on a holiday or weekend, not long after he had already filled up the Supreme Court’s vehicle with gasoline upon returning from a trip. The remaining five convictions for wire fraud involved purchases of gasoline with a government fuel card and travel by Loughry in a Supreme Court vehicle to attend book-signing events at The Greenbrier Resort, for the book Loughry authored in 2006 about public corruption in West Virginia.
Loughry’s two convictions for lying to the FBI resulted from false answers he gave during an interview on March 2, 2018, by a Special Agent of the FBI. During that interview, Loughry claimed he never used a state vehicle for personal use and that he did not know that a desk he had in his home was a “Cass Gilbert desk” or even a desk anyone had ever claimed to be a Cass Gilbert desk.
AUSAs Philip H. Wright and R. Gregory McVey handled the prosecution.
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Former Jamestown Resident Charged with Receipt and Distribution of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Travis Sanders, 32, of North Richland Hills, Texas, formerly of Jamestown, NY, was arrested and charged by criminal complaint with receipt and distribution of child pornography. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Special Assistant U.S. Attorney Jeremy V. Murray, who is handling the case, stated that according to the complaint, Homeland Security Investigations received a report from the Royal Canadian Mounted Police National Child Exploitation Center that an individual was communicating with a person with the username “Damion Forsberg” on Skype. The report indicated that “Forsberg” regularly shared pornography that sometimes included children in the content, and was believed to reside in Buffalo, NY or Florida. Subsequent investigation determined that “Forsberg” was actually the defendant, who resided at the time in Jamestown.
Law enforcement officers seized Sanders’ laptop and cellular telephone. A forensic examination of the defendant's laptop computer revealed images and videos of minors engaged in sexually explicit conduct. The preliminary examination of the phone did not immediately reveal visual depictions of minors engaged in sexually explicit conduct but did reveal social networking applications with the alias “Damion Forsberg.” Officers also discovered that the defendant was chatting with a self-proclaimed minor female in 7th grade, from whom he requested her Snapchat account.
Members of the public who have specific information related to this case are urged to contact the HSI Buffalo Office at 716-464-6070. HSI victim-witness specialists will be available to assist any parent or guardian should they need victim-related resources. If any members of the public have general questions or concerns regarding sexual abuse of children or would like guidance on how to discuss this issue with children, please call the Child Advocacy Program at 716-338-9844.
The defendant was arrested in Texas and made an initial appearance in the Northern District of Texas. Sanders is being detained and will be returned to the Western District of New York at a later date.
The complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.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 Georgia Department of Corrections officer convicted of accepting bribes to smuggle contrabandRead the Press Release
ATLANTA - Jokelra Copeland has been convicted by a federal jury for accepting bribe payments to smuggle contraband, including illegal drugs, into Autry State Prison in Pelham, Georgia.
“It’s troubling that Copeland was willing to sell her oath of office by breaking the very laws she had only months before promised to enforce,” said U.S. Attorney Byung J. “BJay” Pak. “Smuggling contraband into our state prisons is a dangerous business. It compromises the safety of everyone in the prison – inmates, corrections officers and other employees. This type of conduct will not be tolerated. And this defendant will now be held accountable for her betrayal of the public trust.”
“Those who violate their sworn duties as prison officers for greed are a top priority for the FBI,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Copeland not only betrayed the institution she was sworn to protect, she also betrayed every hard working corrections officer who upholds their oath every day.”
“We are pleased to see that justice has been served on this individual for her role in jeopardizing the safe and secure operations of our facilities,” said GDC Interim Commissioner Timothy C. Ward. “Ridding our prisons of corrupt staff and shedding light on those who choose a path of dishonor continues to be one of our top priorities.”
According to U.S. Attorney Pak, the charges and other information presented in court: Copeland began work for the Georgia Department of Corrections (“GA DOC”) in 2014. She was assigned to work the overnight shift at Autry State Prison in Pelham, Georgia. Within months of being hired, Copeland conspired with inmates and other corrections officers to smuggle contraband into the prison.
On multiple occasions, the defendant smuggled marijuana to inmates by hiding the packages under her clothing as she passed through the prison’s security entrance. During a four-month period in mid-2015, Copeland accepted more than $13,000 in bribe payments from the family members of at least two inmates. Financial records showed that on at least eleven occasions bribe payments were sent to Copeland using international financial wire services.
Jokelra Copeland was one of 68 GA DOC officers who were arrested by the FBI in 2016 after an extensive federal investigation. The FBI investigation revealed that some GA DOC officers were willing to smuggle contraband into state prisons in exchange for bribes while other officers were willing to use their law enforcement credentials to protect drug deals occurring outside of the prisons.
Jokelra Copeland, 32, of Doerun, Georgia, will be sentenced before U.S. District Judge Amy Totenberg on May 1, 2019. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by the FBI.
Assistant U.S. Attorney and Deputy Chief of the Public Integrity and Special Matters section Brent Alan Gray and Assistant U.S. Attorney Bret R. Hobson are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Director of Corporate Law at Global Technology Company Charged with Insider TradingRead the Press Release
NEWARK, N.J. – The former corporate secretary and director of corporate law at a global technology company headquartered in Cupertino, California, was charged today with insider trading, U.S. Attorney Craig Carpenito announced.
Gene Levoff, 45, of San Carlos, California, was charged by criminal complaint with one count of securities fraud. He is scheduled to make his initial appearance in Newark federal court on Feb. 20, 2019.
According to documents filed in this case and statements made in court:
Between February 2011 and April 2016, Levoff – the top corporate attorney at “Company-1,” who also served the company’s assistant secretary and corporate secretary – engaged in a scheme to defraud the company and its shareholders. He allegedly misappropriated material, nonpublic information about Company-1’s financial results and then executed trades involving the company’s stock. The scheme allowed Levoff to realize profits of approximately $227,000 and to avoid losses of approximately $377,000.
Levoff used his position as a member/co-chairman of Company-1’s Disclosure Committee – which reviewed and discussed the company’s draft quarterly and yearly earnings materials and periodic U.S. Securities and Exchange Commission (SEC) filings before they were disclosed to the public – to obtain material, nonpublic financial information. Levoff used this confidential information by buying and selling stock in Company-1 ahead of its quarterly earnings announcements, which were issued to the public via press releases. When Levoff discovered that Company-1 had posted strong revenue and net profit for a given financial quarter, he purchased large quantities of stock, which he later sold for a profit once the market reacted to the news. When Levoff learned that Company-1 had posted lower-than-anticipated revenue and net profit, he sold large quantities of Company-1 stock, avoiding significant losses.
Levoff was subject to Company-1’s regular quarterly “blackout periods,” which prohibited individuals who had access to material nonpublic information from engaging in trades until a certain period after the company disclosed its financial results to the public. Levoff ignored this restriction, as well as the company’s broader Insider Trading Policy – which Levoff participated in revising – and instead repeatedly executed trades based on material, nonpublic information without the company’s knowledge or authorization. On several occasions, he executed trades within a blackout period after notifying other individuals subject to the restriction that they were prohibited from buying or selling Company-1 stock until the blackout period terminated.
For example, in July 2015, Levoff sold more than 77,000 shares of Company-1 stock in multiple accounts he controlled after he received Company-1’s draft earnings materials and draft SEC filing for the third quarter of financial year 2015 (Q3 2015) and after he participated in a Disclosure Committee meeting. By selling off his shares, Levoff avoided a loss of approximately $345,000 when Company-1 later publicly disclosed revenue and profit below what many analysts had predicted.
Levoff’s trades on other occasions resulted in profits of approximately $227,000; he also avoided additional losses of approximately $32,000.
The securities fraud count carries a potential penalty of 20 years in prison and a $5 million fine.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Levoff today based on the same conduct.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked the SEC for the assistance provided by its Enforcement Division and Company-1, which cooperated with law enforcement over the course of the investigation.
The government is represented by Senior Trial Counsel Jamari Buxton and Chief Daniel Shapiro of the U.S. Attorney’s Office’s Economic Crimes Unit.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Kevin H. Marino Esq., Chatham, New Jersey
Former Bookkeeper Sentenced for Embezzlement and Loan FraudRead the Press Release
NEWPORT NEWS, Va. – A former bookkeeper was sentenced today to over five years in prison for embezzling funds from a Newport News medical practice and then obtaining a fraudulent SBA-guaranteed loan using the identification information of her father.
According to court documents, Amanda Viglietta, 32, of Newport News, was employed as the bookkeeper for Advanced ENT & Allergy from April through December 2016. In the course of her employment, Viglietta forged her employer’s signature on checks from Advanced ENT’s TowneBank account and caused such checks to be issued to herself, her boyfriend and to other persons and businesses to whom and which she owed money. In an effort to conceal the fraud, Viglietta made fraudulent entries in the QuickBooks records of Advanced ENT and created fake invoices. Vigilietta also made unauthorized and fraudulent use of the credit/debit cards associated with Advanced ENT. Altogether, she fraudulently misappropriated funds in the approximate amount of $180,000 from Advanced ENT.
After the misappropriation from Advanced ENT came to light and Viglietta was terminated in December 2016, she established a limited liability company called Mumbling Mikes, LLC. In February 2017, using this entity, she made application and obtained a United States Small Business Administration (SBA) guaranteed loan from Celtic Bank, using identifying information of her father, without his knowledge or authorization. Viglietta obtained approximately $148,400 in loan funds and used large portions of this approved business loan on personal expenditures and obtaining cashier’s checks.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA), and 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 Brian J. Samuels 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-36.
Former Blacksburg Doctor Sentenced on Federal Drug ChargesRead the Press Release
Roanoke, VIRGINIA – The former owner of the Virginia Vein Institute in Blacksburg was sentenced yesterday to 20 months in federal prison resulting from his conviction on nearly 70 federal drug charges for illegally obtaining 3,200 oxycodone pills, United States Attorney Thomas T. Cullen and the Virginia Attorney General’s Office announced.
Frank Purpera Jr., 44, of Blacksburg, was convicted following a four-day trial in February 2018 in U.S. District Court in Roanoke on 67 counts of obtaining controlled substances by fraud, one count of omitting material information required to be kept, and one count of making a false statement.
In addition to the 20-month period of incarceration, Purpera was also ordered to pay a fine of $34,000 and a $6,800 special assessment.
Evidence presented at trial by Assistant United States Attorneys Randy Ramseyer and Jennie L. M. Waering, and Virginia Assistant Attorney General and Special United States Attorney Nicole Terry, established that Purpera obtained 3,200 oxycodone pills and has no record of what happened to those pills. The defendant claimed to law enforcement the pills were used for procedures on his patients, however, further evidence at trial proved this to be untrue. Purpera later claimed to the Department of Health Professions that he gave all of the 3,200 oxycodone pills to his wife. Evidence presented by the United States during trial showed that it would be outside of the scope of Purpera’s practice to dispense those pills to his wife under the facts and circumstances of the case and, therefore, those distributions would have been illegal.
In addition, evidence presented at trial established that Purpera tampered with witnesses. The defendant advised two of his employees to say “I don’t recall” if questioned by the government. Purpera also showed a video clip from the film The Wolf of Wall Street to one of the employees. In the clip, characters from the film are dealing with a witness and stating, “I don’t recall.”
The investigation of the case was conducted by the Federal Bureau of Investigation, the Department of Health and Human Services-Office of the Inspector General, the Drug Enforcement Administration, the Virginia Attorney General’s Medicaid Fraud Control Unit and an Investigator with the United States Attorney’s Office. Assistant United States Attorneys Randy Ramseyer and Special Assistant United States Attorney Nicole Terry, a Virginia Assistant Attorney General assigned to the Virginia Attorney General’s Medicaid Fraud Control Unit, prosecuted the case for the United States.