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12 February 2019
Beaver Falls Felon Facing Drug and Gun Charges in Project Safe Neighborhoods CaseRead the Press Release
PITTSBURGH, PA – A resident of Beaver Falls, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms and narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Terrance Shawn Elmore, 26, as the sole defendant.
According to the Indictment, Elmore was in possession of firearms while having been previously convicted of felonies, was in possession of a weapon in furtherance of a drug trafficking offense, and possessed with intent to distribute cocaine base, in the form commonly known as crack, and a mixture of acetyl fentanyl, fentanyl, heroin and cocaine.
The law provides for a maximum total sentence of life in prison in prison, a fine of $2,000,000 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 defendant.
Special Assistant United States Attorney Chad R. Parks is prosecuting this case on behalf of the government.
The Drug Enforcement Agency and the Beaver County Drug Task Force conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Neighborhoods. 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Beaver County Man Charged with Possessing Sexual Images and Videos of ChildrenRead the Press Release
PITTSBURGH, PA - A resident of Freedom, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on February 5 and unsealed today, named Adam Hosie, 24, as the sole defendant.
According to the Indictment, on July 12, 2018, Hosie possessed images and videos in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 10 years in prison, a maximum term of supervised release of life, and a fine of $250,000.00. 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 Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Indiana County District Attorney’s Office, and the Western Pennsylvania Violent Crimes Against Children Task Force 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Atlanta real estate attorney receives 15-year sentence for defrauding his law firm out of millions of dollarsRead the Press Release
ATLANTA –Nathan E. Hardwick IV has been sentenced to 15 years in federal prison for orchestrating a scheme to defraud his law firm out of millions of dollars. On October 12, 2018, following a four-week trial, a federal jury convicted Hardwick of wire fraud, conspiracy, and making false statements to a federally insured financial institution.
“This attorney violated the trust placed in him by his clients and his partners; as a result, he is now facing a lengthy prison sentence,” said U.S. Attorney Byung J. “BJay” Pak. “Lawyers who steal client money and embezzle from their partners can expect years in prison for their violation of trust.”
“It is especially troubling that this crime was orchestrated by a lawyer who swore an oath to uphold the law and represent his clients with integrity,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Hardwick was in debt through his own fault and chose to steal from his clients and firm to pay back that debt and finance his extravagant lifestyle. Now he will pay back his debt to society in prison.”
According to U.S. Attorney Pak, the charges and other information presented in court: Hardwick and Asha R. Maurya engaged in a scheme to defraud MHSLAW, Inc. and its subsidiaries, Morris Hardwick Schneider, LLC, and LandCastle Title, LLC, (collectively referred to as “MHS”). MHS owned and operated a law firm that specialized in residential real estate closings and foreclosures, and it ran a title business. MHS employed approximately 800 people in 16 states. Hardwick was the managing partner of the law firm and the CEO of the title business. He also ran the law firm’s closing division, which was based in Atlanta. Maurya managed MHS’s accounting operations under Hardwick's supervision and control.
In early 2007, Hardwick and his law partners sold off part of their business, and Hardwick pocketed approximately $11.8 million. Hardwick quickly squandered that money, however, and by the end of 2010 was broke and deeply in debt.
From January 2011 through August 2014, Hardwick siphoned off more than $26 million from MHS’s accounts to pay his personal debts and expenses and to finance his extravagant lifestyle. More than $19 million of that was client money that was stolen from MHS’s attorney trust accounts. Hardwick spent approximately $18.5 million of the fraud proceeds on gambling, private jets, and more than 50 different social companions.
MHS’s audited financial statements showed that the firm’s combined net income from 2011 through 2013 was approximately $10 million. During that same three-year period, however, Hardwick took more than $20 million out of the firm’s accounts.
Both Hardwick and Maurya made numerous false statements to Hardwick’s law partners concerning the amount of money that Hardwick was taking out of the firm. And Hardwick and Maurya conspired to cover-up the fraud.
Nathan E. Hardwick IV, 53, of Atlanta, Georgia, was sentenced by U.S. District Judge Eleanor L. Ross to serve 15 years, forfeit over $19.9 million in criminal proceeds, given a $2,300 special assessment, and will be required to pay restitution to the victims of the offense. When he is released from prison, Hardwick will be required to serve six years on supervised release. Judge Ross sentenced Asha R. Maurya to seven years in prison, and three years of supervised release. Maurya was also ordered to forfeit $900,000 in criminal proceeds. Their restitution hearing is scheduled for May 9, 2019.
This case was investigated by the FBI.
Assistant U.S. Attorneys Russell Phillips, Lynsey Barron, Kelly Connors, and former Assistant U.S. Attorney Doug Gilfillan prosecuted 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.
Arsonist Who Burned Four Emmett Police Cars Pleads GuiltyRead the Press Release
BOISE - Darrel Rich, 68, of Emmett, Idaho, pleaded guilty yesterday to a two-count indictment charging him with damage by fire to vehicles owned by an institution receiving federal funding, and damage by fire to vehicles used in interstate commerce, U.S. Attorney Bart M. Davis announced.
According to court records, on July 25, 2017, after police had visited the Rich’s residence in Emmett, Rich had telephone communications with his sister wherein he stated that that the police needed to “back off now or somebody is going to get hurt” and that if she “call[ed] the cops on me again. . . we’re done.”
According to court records, on July 26, 2017, at approximately 12:04 a.m., Rich drove his Chevrolet Impala to the Emmett Police Department and parked it on First Street across from the Emmett Police Department unsecured back parking lot. Rich exited the car, opened the trunk and retrieved a gasoline canister, walked to the rear of four police cruisers parked in the back parking lot, and poured gasoline from the canister behind each of them. Rich then lit something on fire, threw it toward the police cruisers, and they ignited. In lighting the police cruisers on fire, Rich acted maliciously and without justification or excuse.
According to court records, the four police cruisers were used in local and interstate police activity, including patrolling interstate streets and transporting out-of-state violators of the law. Also, from 2014 through 2017, the Emmett Police Department received federal financial assistance in the form of subsidies for bulletproof vests.
Sentencing is set for May 7, 2019, before U.S. District Court Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Idaho State Police, the Gem County Sheriff’s Office, and the Emmett Police Department.
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Army Reservist Charged with Participating in Bank Fraud and Money Laundering SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and David E. Beach, the Special Agent-in-Charge of the New York Field Office of the United States Secret Service (“USSS”), announced today that EMEKA NNAWUBA, a/k/a “Benjamin Alabie,” who is a member of the United States Army Reserves, has been charged with participating in a scheme to defraud banks and launder the proceeds of frauds perpetrated against dozens of victims. NNAWUBA was arrested late yesterday, and will be presented today before Chief United States Magistrate Judge Erin L. Wiedemann in Fayetteville, Arkansas. The case has been assigned to United States District Judge Katherine Polk Failla.
U.S. Attorney Geoffrey S. Berman said: “Emeka Nnawuba allegedly laundered money for a scheme that trolled dating websites in order to steal money from the accounts of unsuspecting women. Especially so close to Valentine’s Day, this case serves as a cautionary reminder to be especially wary of those who view dating sites as a predatory opportunity. Nnawuba’s alleged luck in love has run out, as he potentially faces a lengthy period of time alone . . . in federal prison.”
U.S. Secret Service White Plains Resident Agent-in-Charge Julie Goodwin said: “The charges announced today illustrate the Secret Service's commitment to aggressively investigating financial crimes. I would like to thank HSI and the U.S. Attorney's Office for their cooperation and partnership in this case.”
According to the allegations in the Superseding Indictment[1]:
From at least 2016 until 2018, NNAWUBA participated in a scheme to defraud banks and launder the proceeds of frauds perpetrated against dozens of victims. Among other things, NNAWUBA used false identities and false passports to open bank accounts; received or attempted to receive nearly $1,000,000 in fraud proceeds; withdrew tens of thousands of dollars of fraud proceeds in cash; and transferred hundreds of thousands of dollars of fraud proceeds to bank accounts controlled by co-conspirators in an effort to conceal the source of funds.
The funds laundered by NNAWUBA were procured principally by (a) romance scams, in which members of the scheme trolled dating websites to find unsuspecting women and stole their money on false pretenses; and (b) business compromise scams, in which members of the scheme impersonated individuals, professionals, or businesses in the course of otherwise ordinary financial transactions, and then fraudulently induced the counterparties to those transactions to transfer funds to bank accounts controlled and operated by NNAWUBA or other members of the scheme.
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NNAWUBA, 29, of Fayetteville, Arkansas, is charged with one count of participating in a conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison, and one count of participating in a conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Five other individuals previously were charged and pled guilty in connection with their participation in the scheme.
On February 12, 2018, Ifeanyi Ezeji pled guilty to participating in a conspiracy to commit money laundering. On May 31, 2018, Judge Failla sentenced IFEANYI EZEJI to 40 months in prison and three years of supervised release, and ordered him to forfeit $2,080,347.14 and pay restitution in the amount of $873,891.31.
On May 31, 2018, Christopher Ezeji pled guilty to passport counterfeiting. On October 4, 2018, Judge Failla sentenced Christopher Ezeji to five years of probation, and ordered him to forfeit $500.00 and pay restitution in the amount of $873,891.31.
On June 22, 2018, Peter Abbah pled guilty to aggravated identity theft. On October 2, 2018, Judge Failla sentenced Abbah to 24 months in prison and one year of supervised release, and ordered him pay restitution in the amount of $218,498.76.
On July 27, 2018, Michael Akhiero pled guilty to participating in a conspiracy to commit bank fraud. Akhiero is scheduled to be sentenced by Judge Failla on March 14, 2019.
On January 11, 2019, Okechukwu Peter Ezika pled guilty to engaging in monetary transactions in property derived from specified unlawful activity. Ezika is scheduled to be sentenced by Judge Failla on April 10, 2019.
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Mr. Berman praised the outstanding investigative work of the USSS, and thanked United States Immigration and Customs Enforcement’s Homeland Security Investigations for its assistance.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Juliana N. Murray and Robert B. Sobelman are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
35 Individuals Charged with Drug Trafficking in Puerto Rico Project Safe Neighborhoods Enforcement EffortRead the Press Release
SAN JUAN, Puerto Rico – On February 5, 2019, a federal grand jury in the District of Puerto Rico returned an indictment against 35 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation and the Puerto Rico Police Department (PRPD), Fajardo and Humacao Strike Forces, are in charge of the investigation. This case is part of the U.S. Department of Justice’s Project Safe Neighborhoods initiative.
The indictment alleges that beginning in or about the year 2011, the organization distributed crack, heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising the Dr. Pedro J. Palou and Los Jardines de Oriente (also known as Los Condos) Public Housing Projects and other areas, and within 1,000 feet of the Rufino Vigo Elementary School located in the Municipality of Humacao, Puerto Rico, all for financial gain and profit. The object of the conspiracy was the large-scale distribution of controlled substances in Humacao and San Juan for significant financial gain and profit.
The 35 defendants acted in different roles in order to further the goals of their organization, to wit: leaders, drug point owners, runners, enforcers, sellers, and lookouts/facilitators. Twenty-seven defendants are facing one charge of conspiracy to possess firearms in furtherance of a drug trafficking crime.
As part of the conspiracy, armed conspirators provided security to the drug point. If the rules of the drug trafficking organization were violated, the leader(s) or high-level members of the organization would use force, violence, and intimidation against the offenders known as “cobrar falla” in Spanish, in an effort to maintain order within Dr. Palou and Jardines de Oriente, as well as other areas controlled by the drug trafficking organization.
For a period of time in the conspiracy, gang members from Dr. Palou and members of another drug trafficking organization joined forces in order to maintain control of Dr. Palou. It was further part of the manner and means of the conspiracy that members of the drug trafficking organization violently took control of the Jardines de Oriente drug point and of the Padre Rivera Public Housing Project. Some of the defendants and their co-conspirators who participated in the hostile takeover possessed, carried, brandished, and used firearms.
The defendants indicted and arrested today are: Lester Ozuna-González, a.k.a. “Lester Millones/La L”; Héctor Rivera-Resto, a.k.a. “El Cojo/El Negro”; Carlos Luis Pérez-Vega, a.k.a. “Kay/La K”; Christian Fernández-Jorge, a.k.a. “Ardilla”; Pedro César Burgos-Bergoderes, a.k.a. “Cesar/La C”; Félix A. Fernández-Jorge, a.k.a. “Viejo/Tom John”; José Christian Cabret-Pacheco, a.k.a. “Vaca”; Steven Peña-López, a.k.a. “Jampi/Jampier”; Anthony De León-Meléndez, a.k.a. “Montana/Antonio J. De León-Lugo”; Jorge Joel Figueroa-Rivera, a.k.a. “McDonald”; María Victoria Castro-González, a.k.a. “La Fea”; Kiara Liz Ortiz-Velázquez, a.k.a. “Kiki”; Josué Díaz-Rodríguez, a.k.a. “Casco”; Edwin Otero-Díaz, a.k.a. “Chewito”; Rafael Martínez-Trinidad, a.k.a. “Bebo”; Ricardo Burgos-Irizarry, a.k.a. “Chino”; Pedro R. Díaz-Torres, a.k.a. “Pinto”; Ángel G. Fernández-Jorge, a.k.a. “Piu”; Christian Carmona-Llanos, a.k.a. “Negro Carolina/Domi/Mono”; Luis A. Betancourt-Pantojas, a.k.a. “Nazi/Nassi”; Elvin José Castellano, a.k.a. “Menor”; José De La Cruz-Vázquez, a.k.a. “Oso”; Krizialisse Santana-González, a.k.a. “La Galla”; Jean Carlos Lebrón-Falcón, a.k.a. “Silencio”; Alex Miguel Rivera-Marquez, a.k.a. “Alex Corolla”; Edwin Otero-Marquez, a.k.a. “Chewi/Mono”; José Machuca-Benitez, a.k.a. “Mota”; Victor García-Benitez, a.k.a. “Shadow/El Negro”; Janses Rondón-Carrillo, a.k.a. “Janyo”; Samuel Rivera-Valcarcel, a.k.a. “Sammy”; Emilio Soto-Maldonado, a.k.a. “Millo”; Alexis Jean Santiago, a.k.a. “Doble A”; Bryan Ramos-Marrero, a.k.a. “Zurdo”; Nilsa Ortiz-Sánchez, a.k.a. “Mirelis/Mirielis/La Rubia”; and Luz Ortiz-Ubiles, a.k.a. “Mayra”.
“This indictment and the arrests this morning are a significant victory in our efforts to combat drug trafficking and violent crime,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue to conduct investigations with our counterparts to dismantle these criminal organizations and to send a clear message that drugs, firearms, and violence will not be tolerated in our neighborhoods.”
“Teams of agents from every federal, state, and city law enforcement agency on the island have been working around the clock to take back the streets of Puerto Rico for all of the good citizens who deserve to safely enjoy their lives here. The diligence of our partners from the U.S. Attorney’s Office and the Puerto Rico Department of Justice make it possible to bring these major operations to the finish line,” stated Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Division.
Today’s arrests are part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Assistant U.S. Attorney Vanessa E. Bonhomme and Special Assistant U.S. Attorney Nadia Y. Pineda-Pérez, from the Puerto Rico Department of Justice, are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a federal program designed to bring together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated in 2017, as part of the Department’s renewed focus on targeting each community’s most violent criminals. All U.S. Attorney’s Offices work in partnership with federal, state, and local law enforcement, as well as the local civilian community, to develop effective, targeted strategies to reduce violent crime. This case is a product of that collaborative effort.
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11 February 2019
Williamsburg Pharmacist Convicted of Unlawful Drug DistributionRead the Press Release
LONDON, Ky. – Kimberly Jones, a Williamsburg pharmacist, was convicted last week, by a federal jury sitting in London, on seven counts of unlawful distribution of controlled substances.
Jones, 53, owned and operated Kim’s Hometown Pharmacy in Williamsburg, Kentucky, from approximately 2008 to 2018. According to the evidence at trial, Jones repeatedly filled prescriptions for significant quantities of Oxycodone and other controlled substances from a variety of out-of-state doctors. The evidence also established that Jones dispensed controlled substances to certain patients who did not have prescriptions at the time Jones dispensed the drugs. Following a six-day trial, the jury convicted Jones on seven counts of unlawfully dispensing controlled substances to patients outside the scope of professional practice and not for a legitimate medical purpose.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Christopher Evans, Special Agent in Charge, Drug Enforcement Administration; Steven D. Davis, Inspector General, Kentucky Cabinet for Health and Family Services, Office of Inspector General; and Daniel R. Levinson, Inspector General, U.S. Department of Health and Human Services, Office of Inspector General, jointly announced the jury’s verdict.
The investigation was conducted by the Drug Enforcement Administration; the Kentucky Cabinet for Health and Family Services, Office of Inspector General, Drug Enforcement and Professional Practices Branch; and the U.S. Department of Health and Human Services, Office of Inspector General. Assistant United States Attorney Andrew E. Smith represented the United States in the case.
Jones will be sentenced by U.S. District Judge Gregory Van Tatenhove. Jones faces a maximum of 20 years in prison, a fine of up to $1,000,000, and a term of supervision following the service of any sentence. The Court will consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing a sentence.
United States Files Suit Against Lockheed Martin, Mission Support Alliance, and Lockheed Executive Frank Armijo for Fraudulent Overcharging and KickbacksRead the Press Release
WASHINGTON - The United States has filed suit against Mission Support Alliance LLC (MSA), Lockheed Martin Corporation (LMC), Lockheed Martin Services Inc. (LMSI), and Jorge Francisco “Frank” Armijo for alleged false claims and kickbacks in connection with a multi-billion dollar contract with the Department of Energy (DOE) to support the environmental cleanup at the Hanford Site near Richland, Washington, the Justice Department announced today. During the period between 2010 and 2015, MSA, which was partly-owned by an LMC subsidiary, held a DOE prime contract to provide mission support services, including information technology services, for thousands of federal employees and contractors at the Hanford Site. Armijo is a Vice President of LMC and also served as a President of MSA between 2010 and 2015.
According to the Complaint filed by the United States, the Defendants fraudulently obtained tens of millions of dollars from DOE through a series of false statements, half-truths, material omissions, corrupt kickbacks, and outright lies. Defendants used these false statements in order to fraudulently obtain DOE consent to a $232 million subcontract between MSA and LMSI, another LMC subsidiary, according to the Complaint. The United States’ Complaint alleges that Defendants misrepresented the billing rates charged to DOE, the level of effort that they estimated would be needed to complete various work, the anticipated additional profit for LMSI on the subcontract, and MSA’s visibility into LMSI’s internal costs and profit estimates. According to the Complaint, Defendants’ fraud allowed them to obtain grossly inflated and improper additional profit on the subcontract, over and above the profit that LMC was already earning on the very same work through its ownership of MSA.
The United States’ Complaint alleges that certain LMC employees, including Armijo and Rich Olsen, another LMC official assigned to work as MSA’s Chief Financial Officer, were tasked by LMC to perform key roles for MSA, but that these LMC employees continued to work on behalf of LMC while assigned to MSA. According to the Complaint, these employees, including Armijo, misused their MSA positions to assist LMC in obtaining impermissible profit and grossly inflated pricing. Specifically, the Complaint alleges that these individuals falsely represented to DOE that MSA had independently evaluated LMSI’s pricing and proposal and determined that it represented fair and reasonable pricing for DOE and did not contain any additional profit for LMSI for the same work on which LMC was already earning profit through its ownership of MSA. The Complaint alleges that LMC paid Armijo and others millions of dollars in cash and LMC stock in return for these efforts as part of an incentive compensation program. According to the Complaint, these payments were kickbacks paid by LMC to Armijo and others as a reward for improperly using their MSA positions to provide favorable treatment for LMC.
In August 2018, Olsen paid $124,440 to resolve his liability arising from his role in the scheme set forth in the Complaint, and agreed to cooperate in the United States’ investigation of the Defendants and subsequent enforcement efforts.
Joseph H. Harrington, United States Attorney for the Eastern District of Washington, said: “Fraud, corruption, and self-dealing at Hanford will simply not be tolerated. The critical mission of cleaning up the Hanford Site in a safe, timely, environmentally responsible, and cost-efficient manner is too important to the public and the residents of this region.” Harrington went on to state, “This enforcement action demonstrates and underscores the United States Attorney’s Office’s commitment to working with our law enforcement partners to hold fraudsters accountable, whether they are individuals, businesses, or the nation’s largest corporations.”
“Where Congress has allocated money for specific purposes, we will not tolerate unlawful conduct by contractors who seek to enhance their profits at the expense of taxpayers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This lawsuit demonstrates that the Department of Justice will work tirelessly to ensure that public funds are used for the important purposes for which they are intended.”
“The Department of Energy Office of Inspector General is committed to ensuring the integrity of Departmental contracts and financial expenditures,” said Teri L. Donaldson, Department of Energy Inspector General. “We take allegations of false claims, overbilling and kickbacks very seriously and will aggressively investigate these matters to ensure efficiency throughout DOE programs. We appreciate the efforts of the DOJ in pursuing these allegations and will continue our collaboration with the DOJ to investigative those who seek to defraud Department programs.”
Joe Franco, Deputy Manager for the Richland Operations Office at Hanford, said “the Department of Energy identified the possibility of fraud to the Department of Justice and DOE Office of Inspector General during DOE’s administration of the contract. DOE appreciates the efforts of the Department of Justice and the Inspector General, and we will continue to assist with their investigation and prosecution of the alleged fraudulent activity. DOE will not tolerate fraudulent behavior by its contractors and will continue to strengthen its federal oversight at Hanford.”
Assistant United States Attorneys Tyler Tornabene and Dan Fruchter are handling this matter in conjunction with the Commercial Litigation Branch of the Department of Justice’s Civil Division, with analytical support from Affirmative Civil Enforcement Investigative Analyst Jeanne Harkleroad and investigative support from the DOE’s Office of Inspector General. The claims asserted by the United States are allegations only; there has been no determination of liability. The lawsuit is captioned United States v. Mission Support Alliance, LLC, et al. (E.D. Wash.).
U. S. and West Virginia Reach Settlement with Antero Resources Corporation for Clean Water Act Violations at 32 West Virginia SitesRead the Press Release
The Department of Justice, the United States Environmental Protection Agency (EPA), and the West Virginia Department of Environmental Protection (WVDEP) announced that they have reached a settlement with Antero Resources Corporation resolving alleged violations of Section 404 of the Clean Water Act (CWA) at 32 sites in Harrison, Doddridge, and Tyler Counties in West Virginia.
The settlement filed in U.S. District Court for the Northern District of West Virginia requires Antero to pay a civil penalty of $3.15 million and to conduct restoration, stabilization, and mitigation work at impacted sites. Antero will also provide mitigation for aquatic resource impacts.
“The Department of Justice is pleased to join with the EPA and the West Virginia Department of Environmental Protection in reaching this settlement and will continue to work with its law enforcement partners to hold corporations accountable for violating the nation’s environmental laws,” said Assistant Attorney General Jeffrey Bossert Clark of the Environment and Natural Resources Division.
“This settlement seeks to rectify harm done to U.S. waters from unauthorized activities undertaken by Antero, and demonstrates that federal and state regulators are committed to pursuing violations that threaten human health and the environment,” said EPA Regional Administrator Cosmo Servidio.
Impacts to aquatic resources will be partially offset at a 51.5-acre permittee-responsible mitigation site that will restore, enhance, create, and preserve over 11,500 linear feet of streams and more than 3 acres of wetlands. The EPA-estimated value of the proposed mitigation and restoration is $8 million.
The violations involved the unauthorized disposal of dredged and fill materials into waters of the United States at or near sites where Antero had constructed well pads, compressor stations, impoundments, pipeline crossings, access roads, and other structures associated with Marcellus Shale natural gas extraction by means of hydraulic fracturing, also known as fracking.
While each of the 32 sites varied regarding the extent of the impact to wetlands and streams, the unauthorized activities impacted more than 19,000 linear feet of streams and over four acres of wetlands and included:
- Stream impoundments;
- Filling wetlands and streams for compressor station pads;
- Realigning and culverting stream segments; and
- Failing to fully restore “temporary” impacts.
Approximately half of the sites were identified by Antero through a self-audit. Several of the sites were associated with construction failures or “slips” from access roads and pads.
The proposed settlement which is subject to a 30-day public comment period is available at: https://www.justice.gov/enrd/consent-decrees.
For more information about Clean Water Act Section 404 protection of wetlands and waterways, visit https://www.epa.gov/cwa-404.
Two Elmira Opioid Dealers Sentenced for Their Roles in A Drug Trafficking RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Edward Barrett, 27, of Elmira, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of a fentanyl analogue, was sentenced to serve 90 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr. In addition, Judge Geraci sentenced Dusty Pemberton, 24, also of Elmira, to serve 70 months in prison for his convicted on a charge of conspiracy to possess with intent to distribute, and to distribute, 10 grams or more of a fentanyl analogue.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that both defendants were part of a large-scale opioid manufacturing and trafficking organization that operated in the Southern Tier of New York between 2015 and May 2017. As members of the organization, Barrett and Pemberton were street-level dealers of blue pills containing furanyl fentanyl in the Elmira area. The blue pills were manufactured by the leaders of the organization – Robert Ian Thatcher and Maximillian Sams – and made to look like legitimate 30 milligram Percocet pills.
Barrett and Pemberton each admitted to selling pills to various customers, including both a 21 year-old female and a 25 year-old male, respectively, who ultimately died of drug overdoses.
To date, 16 members and associates of the opioid manufacturing and trafficking operation have been convicted of federal narcotics offenses. Three defendants have been sentenced; Thatcher was sentenced to serve 23 years in federal prison; Thatcher’s girlfriend, Amber Bates, who was convicted of money laundering conspiracy, was sentenced to five years probation to include six months of home detention; and Isaiah McLaurin, who was convicted of witness tampering after threatening an individual working with the Drug Enforcement Administration on Facebook, was sentenced to serve 57 months in federal prison.
As U.S. Attorney Kennedy has previously stated, “That the members of this organization sought to profit by pushing poison on addicts, is reprehensible. In my view, however, what is even more insidious about their behavior was their effort to press this poison into counterfeit pills, thereby given their customers a false sense of security that there was some quality and dosage control associated with their manufacture.”
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, Rochester Resident Office and Scranton PA Resident Office, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the New York State Police, Community Narcotics Enforcement Team Southern Tier, under the direction of Major Mary Clark and Lieutenant Kevin P. Sucher; the Elmira Police Department, under the direction of Chief Joseph Kane; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Pennsylvania State Police, under the direction of Acting Commissioner Lieutenant Colonel Robert Evanchick; the Chemung County Sheriff’s Office, under the direction of Christopher J. Moss; the Iredell, NC County Sheriff’s Office, under the direction of Darren E. Campbell; and Customs and Border Protection Air and Marine Unit, under the direction of Director Brian Manaher. Additional assistance was provided by the Northeast Regional Laboratory.# # # #
Training Agent Admits Selling False OSHA Training CardsRead the Press Release
TRENTON, N.J. – A certified Occupation Safety and Health Administration training agent today admitted submitting false reports and selling fraudulent training cards to carpenters to improperly establish that they were certified in safety standards, U.S. Attorney Craig Carpenito announced.
Mark Dropala, 42, of Middle Village, New York, pleaded guilty before U.S. District Judge Brian Martinotti in Trenton federal court to an information charging him with one count of making and using false OSHA documents.
According to documents filed in this case and statements made in court:
“OSHA 10” training is a program for construction workers, including carpenters and laborers, to provide knowledge and skills in occupational safety standards. One of the focuses of the course is safety regulations for electrical equipment and scaffolding construction to help prevent injuries and deaths to construction workers.
Dropala was certified by OSHA’s Outreach Training Program (OTP), authorized through OSHA’s Training Organization at Rutgers University in New Brunswick, New Jersey. He was authorized to issue OSHA 10 cards that proved to employers that the holder of the card had taken and passed a 10-hour OTP training course. Instead, Dropala sold in excess of 100 false OSHA 10 cards for approximately $200 per card.
The count to which Dropala pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for July 2, 2019.
U.S. Attorney Carpenito credited special agents of the Port Authority of New York and New Jersey, under the direction of Inspector General Michael Nestor, and U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka, with the investigation leading to today’s guilty plea.
The government is represented by V. Grady O’Malley, Senior Litigation Counsel of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
Tehachapi Woman Sentenced to Prison for Aggravated Identity TheftRead the Press Release
FRESNO, Calif. — Hazel Turner, 54, of Tehachapi, was sentenced today by U.S. District Judge Lawrence J. O’Neill to two years in prison for aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, Turner unlawfully possessed names, addresses, dates of birth, social security numbers, and other personal identifying information of real people. Turner used this information to prepare and submit fraudulent federal income tax returns. Turner attempted to defraud the federal government out of more than $133,000. Turner’s scheme, however, was discovered and no funds were paid.
This case was the product of an investigation by the Internal Revenue Service and the Kern County Sheriff’s Department. Assistant United States Attorney Melanie L. Alsworth prosecuted the case.
Tahlequah Man Sentenced to 12 Months for Misprision of A FelonyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Robert Prag, age 46, of Tahlequah, Oklahoma, was sentenced to 12 months of imprisonment and 1 year of supervised release for Misprision of a Felony, in violation of Title 18, United States Code, Section 4. The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
The Indictment alleged that between April 26, 2017 and June 20, 2017, within the Eastern District of Oklahoma, the defendant, having knowledge of the actual commission of an Arson, a felony cognizable by a court of the United States, concealed it by disposing of evidence related to the Arson, and did not as soon as possible make it known to some judge or other person in civil or military authority under the United States.
The investigation and prosecution of Prag is related to the Arson that occurred on April 26, 2017 that extensively damaged the Sherwin Williams located in Tahlequah. Matt Smith was convicted and sentenced for the Arson on October 16, 2018. The Arson was investigated by the Tahlequah Police and Fire Departments, the Broken Arrow Police Department, the Oklahoma State Fire Marshal, the Cherokee County Sherriff’s Office, and the ATF.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
South Carolina University to Pay $2.5 Million to Settle False Claims Act Allegations Arising from Violation of Ban on Incentive CompensationRead the Press Release
North Greenville University (NGU), based in Greenville, South Carolina, will pay $2.5 million to resolve allegations under the False Claims Act of submitting false claims to the U.S. Department of Education in violation of the federal ban on incentive-based compensation, the Justice Department announced today.
Title IV of the Higher Education Act (HEA) prohibits any institution of higher education that receives federal student aid from compensating student recruiters with a commission, bonus, or other incentive payment based on the recruiters’ success in securing student enrollment. The incentive compensation ban protects students against aggressive admissions and recruitment practices that serve the financial interests of the recruiter, rather than the educational needs of the student.
“Offering unlawful financial incentives for recruiting undermines the integrity of our higher education system,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Prospective students are entitled to make enrollment decisions without the improper influence of recruiting companies who pursue their own financial gain at the expense of the students’ best interests.”
“This settlement will help ensure that schools and recruitment services put the educational interests of students and potential enrollees first,” said U.S. Attorney Sherri A. Lydon for the District of South Carolina. “It should serve as a warning to institutions that would attempt to maximize enrollments to line their own pockets, disregarding the best interests of students in the process. Through False Claims Act cases like this one, the U.S. Attorney’s Office will continue to help protect federal taxpayer dollars from waste, fraud, and abuse.”
The settlement resolves allegations that between 2014 and 2016, NGU hired Joined Inc., a company partially owned by NGU, to recruit students to NGU and compensated Joined based on the number of students who enrolled in NGU’s programs, in violation of the prohibition on incentive compensation.
“The Office of Inspector General has a unique and special law enforcement mission – to protect public education funds for eligible students. Today’s settlement is an example of our commitment to this mission,” said Neil Sanchez, Special Agent in Charge of the U S. Department of Education Office of Inspector General’s Southern Regional Office. “The OIG will continue to work with our law enforcement colleagues and pursue allegations of violations of the False Claims Act in carrying out our important public service.”
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act by Maurice Shoe, the co-owner of Joined. The Act permits private parties to sue on behalf of the government for false claims and to receive a share of any recovery. As part of today’s resolution, the whistleblower will receive $375,000.
This matter was investigated by the U.S. Attorney’s Office for the District of South Carolina and the Civil Division’s Commercial Litigation Branch. Investigative assistance was provided by the Office of Inspector General of the Department of Education.
The claims resolved by the settlement are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Shoe v. North Greenville University, No. 6:16-cv-01570 (D.S.C.).
Settlement Reached in Uinta-Wasatch-Cache National Forest Fire Known as the “Bountiful Fire”Read the Press Release
SALT LAKE CITY – Jayson Ross Orvis of Bountiful has agreed to pay $395,914 to settle a civil claim brought by the United States for costs to fight a fire that occurred on August 29, 2017, U.S. Attorney John W. Huber announced today.
The settlement includes a $14,123 payment for environmental remediation costs associated with multiple encroachments on U.S. Forest Service property in addition to the fire damage. This settlement is neither an admission of liability by Orvis nor a concession by the United States that its claims are not well founded.
“This settlement fully compensates the public for the expense of fighting the fire and restoring these public lands,” U.S. Attorney John W. Huber said today.
The fire, known as the “Bountiful Fire,” started Aug. 29, 2017, on Orvis’ Bountiful Bench Hillside Hollow Circle property and quickly spread to the adjacent Salt Lake Ranger District of the Uinta-Wasatch-Cache National Forest. The fire was caused by sparks emitted from a power grinder used by James Golden, who was hired by Mr. Orvis to do work on his property.
Additionally, Orvis has forfeited $560 for two Forest Service violations that prohibit constructing, placing and maintaining structures without a permit on national forest land. During the fire investigation, it was determined that Orvis had placed a shooting pavilion and an outfitter tent on the national forest land. Golden also forfeited $280 for a violation for carelessly and negligently placing an ignited substance that may cause a fire. The criminal Information in this matter has been dismissed.
Schenectady Man Pleads Guilty to Distributing Crack Cocaine and HeroinRead the Press Release
ALBANY, NEW YORK – Damise Dixon, age 30, of Schenectady, New York, pled guilty today to distributing crack cocaine and heroin in November and December of 2018.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Raymond P. Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; and Schenectady County Sheriff Dominic Dagostino.
Dixon admitted that he distributed approximately 180 grams of crack cocaine and approximately 15 grams of heroin to another person in Schenectady.
Sentencing is scheduled for June 11, 2019 before United States District Judge Mae A. D’Agostino. Dixon faces at least 5 years and up to 40 years in prison, and a term of post-imprisonment supervised release of at least 4 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the DEA and the Schenectady County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
San Diego Genetic Testing Company Agrees to Pay $1.99 Million to Resolve Allegations of False Claims to Medicare for Medically Unnecessary TestsRead the Press Release
Assistant U. S. Attorney Joseph Price (619) 546-7642
NEWS RELEASE SUMMARY – February 11, 2019
SAN DIEGO – GenomeDx Biosciences Corp. (“GenomeDx”) has agreed to pay $1.99 million to resolve allegations that it violated the False Claims Act, 31 U.S.C. §§ 3729 et seq., by submitting false claims to Medicare for its “Decipher®” post-operative genetic test for prostate cancer patients. GenomeDx is a genomic testing company with operations based in San Diego and headquarters in Vancouver, British Columbia.
The United States alleged that GenomeDx submitted claims to Medicare between September 2015 and June 2017 for the Decipher test that were not medically reasonable and necessary because the prostate cancer patients did not have risk factors necessitating the test, namely pathological stage T2 disease with a positive surgical margin, pathological stage T3 disease, or rising Prostate-Specific Antigen (“PSA”) levels after an initial PSA nadir.
“The Department of Justice is committed to ensuring that Medicare patients only receive laboratory testing that is reasonable and necessary for the individual patient,” said Assistant Attorney General Joseph A. Hunt. “Medically unnecessary and unproven testing increases costs for federal health care programs and is not in the interest of patients.”
“As this settlement demonstrates, we are committed to protecting the integrity of the Medicare program and will hold health care providers accountable under the False Claims Act when they engage in improper billing,” said Robert S. Brewer, Jr., United States Attorney for the Southern District of California. “This settlement is also another example of our commitment to vigorously investigate cases brought to our attention by whistleblowers. We commend the two employees of GenomeDx who had the courage to come forward and work with investigators.”
“Lab tests and other medical services should only be conducted or provided when medically necessary,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Whistleblowers play a critical role in keeping entities honest and accountable, and are encouraged to report suspected waste, fraud and abuse by those billing federal healthcare programs.”
“The message is clear, if you take advantage of programs like Medicare, you will be held accountable,” said John Brown, FBI Special Agent-in-Charge. “Companies who engage in filing false claims to generate more corporate revenue are not only stealing from the federal taxpayer, but also from people who rely on federally funded programs for their health care needs.”
The False Claims Act allegations being resolved were originally brought in a lawsuit filed by two former employees of Genome DX, Stephanie LaFleur and Corrine Vause, under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of fraud against the government to bring suit on behalf of the government and to share in any recovery. The whistleblowers will receive approximately $350,000 of the settlement proceeds of $1,990,380.
The investigation was conducted by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Southern District of California, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation.
The case is captioned United States ex rel. La Fleur et al. v. GenomeDX Biosciences Corp., No. 17-CV-1959 (S.D. Cal.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
DEFENDANT
Civil Case No. 17CV1959
GenomeDX Biosciences Corp. San Diego, California
Richland Man Sentenced to 28 Years in Federal Prison for Producing and Distributing Child PornographyRead the Press Release
Spokane, Washington – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Zayne Kent Barbre, 29, of Richland, Washington, was sentenced today after having pleaded guilty on October 18, 2018, to four counts of Production of Child Pornography and one count of Distribution of Child Pornography. United States District Judge Salvador Mendoza, Jr. sentenced Barbre to a 28-year term of imprisonment on the production counts, which involved Barbre recording himself sexually assaulting minor boys, and 20 years on the distribution count, which involved him sending those videos to other adult men. The Court ordered those sentences to be served concurrently, and recommended that related state charges be served concurrently as well, and imposed a lifetime of supervised release on Barbre.
According to information disclosed during court proceedings, Barbre: drugged 14- and 15-year old minors with methamphetamine before engaging in sex with them; got them hooked on methamphetamine so he could continue to rape them in exchange for providing them with drugs; engaged in human trafficking by making a minor prostitute himself to other adult men in exchange for methamphetamine and money; enforced his will by telling a minor he had a gun; harbored a minor so he could ply him with methamphetamine and engage in sex with him; and repeatedly recorded these heinous crimes, often without his drugged victims’ knowledge. At times, Barbre handcuffed his victims while sexually assaulting them. After Defendant’s arrest, law enforcement agents searched his digital devices and discovered 170 still images and 272 videos of child abuse. Sixty-seven of the still images and twenty-four of the videos were unique, meaning Barbre likely created them.
Barbre’s conduct also violated numerous state laws, and the global resolution in this case was negotiated in conjunction and consultation with the Benton County Prosecutor’s Office, who filed State charges against Barbre for related criminal acts.
Joseph H. Harrington said, “The 28-year sentence imposed today reflects Barbre’s despicable and cruel criminal conduct. As Judge Mendoza noted during today’s sentencing hearing, there are only a handful of crimes as monstrous as what Barbre did here. On behalf of our communities in the Eastern District of Washington, I salute the individual bravery of each the victims who came forward in this case -- we all support you as you continue to recover. This successful prosecution is the direct results of the seamless law enforcement partnerships among the Kennewick and Richland, Washington Police Departments, the Southeast Regional ICAC Task Force, and the United States Department of Homeland Security, Homeland Security Investigations.”
“The abuse inflicted upon these young victims causes life-long mental and physical scars, said Brad Bench, special agent in charge of HSI Seattle. We arecommitted to finding and arresting these dangerous child predators; and I am grateful for our dedicated agents and the strong partnerships with all the agencies involved in bringing them to justice.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by the Southeast Regional ICAC Task Force, the United States Department of Homeland Security, Homeland Security Investigations, and Police Departments for Kennewick and Richland, Washington. The case was prosecuted by David Herzog, Assistant United States Attorney for the Eastern District of Washington.
Project Safe Neighborhoods Initiative Leads to 10-Year Sentence for Man Convicted of Armed RobberyRead the Press Release
CHARLOTTE, N.C. – Octavius DeJuan Phillips, 30, of Gastonia, N.C., was sentenced to 121 months in prison and three years of supervised release on armed robbery charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. presided over the sentencing.
According to filed documents and statements made in court, on August 26, 2017, Phillips committed a robbery at the Family Dollar store located at 3400 Wilkinson Boulevard, in Charlotte. Court records show that Phillips entered the store at 9:54 a.m., armed with a silver handgun. Phillips approached the store clerk, pointed his firearm at the employee and demanded money from the register. The store clerk complied and Phillips fled the scene with the store’s money. He was apprehended the same day in Pineville, N.C. In October 2018, Phillips pleaded guilty to Hobbs Act robbery and brandishing a firearm during, in relation to, and in furtherance of a crime of violence. Court records show that Phillips has a previous felony drug conviction and multiple assault convictions.
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In a separate case, Quincy Lamonte Love, 27, Kannapolis, N.C., was sentenced to 60 months in prison, followed by three years of supervised release for possession of a firearm in furtherance of a drug trafficking offense. According to court records, on March 27, 2017, law enforcement found Love inside of a car with drugs and firearms. Following Love’s arrest, law enforcement seized a Glock, model 42, .380 caliber pistol and a Desert Eagle, .45 caliber pistol. Love has previous felony convictions and is prohibited from possessing firearms.
In making today’s announcement U.S. Attorney Murray commended the FBI and the Charlotte-Mecklenburg Police Department (CMPD) for investigating Phillips’ case, and thanked U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and CMPD for conducting the investigation into Love.
Assistant U.S. Attorney Erik Lindahl, of the U.S. Attorney’s office in Charlotte, prosecuted both cases.
These cases have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Plum Twp. Man Sentenced to More than 3 Years in Prison for Robbing Mt. Washington BankRead the Press Release
PITTSBURGH, Pa. – A resident of Plum Township, Pennsylvania, has been sentenced in federal court to a term of imprisonment of three years and four months, to be followed by three years of supervised release, on his conviction on a charge of bank robbery, United States Attorney Scott W. Brady announced today.
Senior United States District Court Judge David S. Cercone imposed the sentence on Matthew Gallo, 35.
According to information presented to the court, on December 4, 2017, an individual, later identified as the Defendant, robbed the First National Bank in the Mt. Washington section of the City of Pittsburgh. He fled the bank with $730.00 before authorities could apprehend him. Surveillance photos from the robbery were shown on the local news. FBI received two separate tips identifying Matthew Gallo as the individual responsible for the bank robbery. On January 10, 2018, Allegheny County Sheriff’s personnel arrested Gallo on an unrelated matter. Gallo later confessed to committing the bank robbery. Gallo was also shown a surveillance photograph of the bank robber and signed the back of a photograph identifying himself as the robber.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, City of Pittsburgh Bureau of Police and the Allegheny County Sheriff’s Office conducted the investigation in this case through Project Safe Neighborhoods.
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.
Pittsburgh Man Pleads Guilty to Defrauding Local BanksRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has pleaded guilty in federal court on a charge of fraud conspiracy, United States Attorney Scott W. Brady announced today.
Deshaun A. McGeorge, 27, pleaded guilty to one count before United States District Judge David S. Cercone.
According to the indictment, McGeorge and others agreed to defraud Pittsburgh area banks by depositing counterfeit checks by remote mobile deposit, and then making a series of withdrawals against funds credited from the deposited checks.
Judge Cercone scheduled the sentence for sentencing for June 18, 2019 at 11 a.m. The law provides for a maximum total sentence of not more than 30 years in prison, a fine of $1,000,000, 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 Gregory C. Melucci and Shanicka L. Kennedy are prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of this defendant. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Okmulgee Man Sentenced to 40 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brett Wayne Pigeon, age 32, of Okmulgee, Oklahoma, was sentenced to 40 months imprisonment and 3 years of supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Okmulgee Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about March 23, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed a Charles Daly, 12 gauge pump action shotgun, serial number 950658, a firearm which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “The safety of the public is the top priority of federal, state, local and tribal law enforcement agencies. When agencies work together, as the OPD and ATF did in this case, we are able to maximize our impact and resources and make the communities we serve safer.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Ohio County resident admits to failing to update his sex offender registrationRead the Press Release
WHEELING, WEST VIRGINIA – Joshua Phillip Sweet, of Triadelphia, West Virginia, has admitted to moving to West Virginia without updating his sex offender registration, United States Attorney Bill Powell announced.
Sweet, age 37, pled guilty to one count of “Failure to Update Sex Offender Registration.” Sweet admitted to moving from Niagra Falls, New York, to Triadelphia, West Virginia in July 2017 and not updating his sex offender registration, as required by law.
Sweet is up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The United States Marshal Service and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Northshore Mortgage Broker Sentenced to Making False Statements to the Social Security AdministrationRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JAMES BRIANT, age 68, a resident of Covington, Louisiana and mortgage broker and senior loan officer at Alpha Mortgage, LLC was sentenced Thursday, February 7, 2019 to three years probation for making false statements to the Social Security Administration (SSA) in order to obtain Social Security Disability Payments. BRIANT was also ordered to pay approximately $134,000 in restitution to the Social Security Administration.
According to court documents, from on or about June 10, 2010, the defendant, BRIANT, applied for disability benefits from the Social Security Administration, a department and agency of the United States, for a back disorder and heart disease. Thereafter, in December of 2011, he began receiving monthly disability benefits of approximately $2,370, based on the representation that he was unable to work. During the time he received disability payments, the defendant, BRIANT, had an obligation to report any income he made to the SSA.
At a time unknown, but prior to September 2012, the defendant, BRIANT, began working as a loan officer and mortgage broker at Alpha Mortgage, L.L.C, earning a salary. He worked there through in or around June 2017 and never reported to the SSA that he was working or earned any income. On or about December 15, 2015, BRIANT completed a Social Security Disability form specifically, an SSA-Form 795, “Statement of Claimant” and submitted it to the SSA. In this statement, he signed and certified, under penalty of perjury that he had not worked since 2011, knowing full well that this statement was materially false, fictitious, and fraudulent.
U.S. Attorney Strasser commended special agents of the Social Security Administration, Office of Inspector General, who investigated the case and Assistant U.S. Attorney Sharan Lieberman, who is in charge of the prosecution.
Nine Men Charged with Robbing PharmaciesRead the Press Release
COLUMBUS, Ohio – A federal grand jury here has charged nine Southern Ohio men with crimes related to the armed robberies of 11 Ohio pharmacies.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Roland Herndon, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the charges that were unsealed today.
According to the indictment, from April to October 2018, co-conspirators would present demand notes at pharmacies that stated they were completing an armed robbery and they would kill the employees of the pharmacy if the employees did not comply with demands for narcotics listed in the note.
The robberies occurred on:
April 16, 2018, at Rite Aid on Linden Avenue in Dayton;
April 26, 2018, at Rite Aid on McAdams Drive in New Carlisle;
May 22, 2018, at CVS on Sawmill Road in Columbus;
June 2, 2018, at CVS on Montgomery Road in Norwood;
June 7, 2018, at CVS on Montgomery Road in Silverton;
July 5, 2018, at Rite Aid on North Wolfe Creek Street in Brookeville;
August 4, 2018, at Rite Aid on West National Road in Vandalia;
August 8, 2018, at Rite Aid on South Allison Avenue in Xenia;
August 17, 2018, at Rite Aid on Central Avenue in Middletown;
September 5, 2018, at Rite Aid on Linden Avenue in Dayton; and
October 15, 2018, at Rite Aid on Union Boulevard in Englewood.
Those charged include:
Name
Age
City of Residence
Courtney A. Byrd
21
Trotwood
Damar L. Kerley
21
Dayton
James P. Taylor, Jr.
19
Dayton
Cameron D. Redd
21
Cincinnati
Ja’Mical L. Betts
20
Dayton
Dasean Whitehead
19
Dayton
Justin J. Jefferson, Jr.
19
Dayton
Rodney A. Robbins II
19
Trotwood
Philmore B.P. Alexander IV
19
Dayton
Defendants are charged with conspiring to commit Hobbs Act Robbery, interfering with interstate commerce by robbery and possessing with the intent to distribute Oxycodone. Each of the three crimes is punishable by up to 20 years in prison.
U.S. Attorney Glassman commended the cooperative investigation of this case by ATF, the Columbus, Dayton, Norwood, Brookeville, Vandalia, Xenia, Middletown and Englewood police departments, Clark County, Montgomery County and Hamilton County sheriff’s offices and the Montgomery County Prosecutor’s Office, as well as Assistant United States Attorneys David J. Bosley and Kelly Norris, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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New Orleans Man Sentenced for Narcotics ChargesRead the Press Release
NEW ORLEANS–U.S. Attorney Peter G. Strasser announced that MARVIN ARMSTRONG, age 32, of New Orleans, was sentenced for heroin charges.
According to court documents, ARMSTRONG conspired with others to distribute between 100 and 400 grams of a mixture or substance containing a detectable amount of heroin, and distributed approximately 7 grams of a mixture or substance containing a detectable amount of heroin.
U.S. District Judge Eldon E. Fallon sentenced ARMSTRONG to 68 months incarceration, to be followed by 3 years of supervised release. ARMSTRONG was also ordered to pay a $100.000 special assessment.
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.
U. S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New Orleans Police Department, and the Louisiana State Police in investigating this matter. The case is being prosecuted by Assistant United States Attorneys Maria M. Carboni and Matthew R. Payne.
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New Haven Heroin Dealer Sentenced to Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CURTIS DRAUGHN, also known as “Kirk,” 63, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 15 months of imprisonment, followed by three years of supervised release, for distributing heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, following the December 2016 overdose death of a 33-year-old New Haven man, investigators determined that the victim had called “Kirk” prior to his overdose. In May 2017, investigators contacted “Kirk,” who was identified to be Draughn, asking about purchasing heroin. In May, June and August 2017, investigators made three controlled purchases of heroin from Draughn.
Draughn was arrested on October 25, 2017. On October 23, 2018, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Mexican National Pleads Guilty to Marijuana Cultivation in Protected Kern County Kiavah WildernessRead the Press Release
FRESNO, Calif. — Rodolfo Torres-Galvan, 29, (Torres), a native and citizen of Mexico, pleaded guilty today to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, U.S. Attorney McGregor W. Scott announced. He is the second co-conspirator to enter a guilty plea in this case.
According to court documents, Torres and his co-defendants, Mauricio Vaca-Bucio, 31, and Felipe Angeles Valdez-Colima, 35, were apprehended after a two-month investigation in the Kiavah Wilderness, a federally designated wilderness area in the Sequoia National Forest. Law enforcement officers saw Torres and Valdez emerge from the forest and enter a Camaro driven by Vaca. They were subsequently stopped in Weldon. Officers found freshly harvested marijuana in the Camaro and located over 1,800 marijuana plants at the grow site on the trail that led to the drop point. The officers also found deadly illegal pesticides, including carbofuran and zinc phosphide, in both the vehicle and at the grow site. In pleading guilty, Torres agreed to pay over $7,000 in restitution to the U.S. Forest Service for the environmental damage caused to the National Forest.
The United States Congress designated the Kiavah Wilderness in 1994, and it is managed by the Bureau of Land Management and the Forest Service. This wilderness area is part of the National Cooperative Land and Wildlife Management Area and the Bureau of Land Management’s Jawbone-Butterbredt Area of Critical Environmental Concern.
This case is the product of an investigation by the U.S. Forest Service with assistance from Enforcement and Removal Operations of Immigration and Customs Enforcement (ICE), Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, California National Guard, Kern County Sheriff’s Office, and Kern County Probation Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Torres is scheduled for sentencing on April 29, 2019. Valdez pleaded guilty in January and is scheduled for sentencing on April 22, 2019. They face a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. 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. The charges against Vaca are pending and are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Members of Ohio Militia Group Charged with Possessing Unregistered ExplosivesRead the Press Release
CINCINNATI – A federal grand jury has charged two members of an Ohio militia group with violating the National Firearms Act in an indictment unsealed here today.
Ryan D. King, 37, of Franklin, Ohio and Randy D. Goodman, 53, of Ripley, Ohio, were each charged with two counts related to possessing unregistered explosive devices. King and Goodman were both arrested today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges.
According to the indictment, King and Goodman were members of a militia group operating in the Southern District of Ohio. King and Goodman established a small subset of the militia group and referred to it as the “Special Projects Team.” The defendants advocated that this Team construct, use and stockpile explosives they called “crater makers.”
The defendants allegedly conspired to possess and possessed destructive devices in violation of the National Firearms Act, specifically, bombs and parts necessary to make pipe bombs.
In January 2019, King and Goodman allegedly tested their “crater makers” at Goodman’s home in Ripley, Ohio. They discussed construction and ignition methods in detail. Goodman referenced the Boston Marathon as an example of a remote detonation system that worked.
They discussed which methods would be most lethal.
For example, Goodman asked, “Do we know how they built the pressure cookers for the Boston bombers…we are talking the same concept…”
King added, “If you really want explosions you would bury these in the driveway, so they go up and out. We can build land mines, I’ve already built them before, you know that.”
Possessing an unregistered firearm or destructive device is punishable by up to 10 years in prison. Conspiring to do so is a crime that carries a potential maximum sentence of five years in prison.
This case was investigated by agents with the FBI and is being prosecuted by United States Attorney Glassman and Assistant United States Attorney Sheila G. Lafferty.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Megan Brook Gilliam Sentenced to Serve 110 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On February 11, 2019, Megan Brook Gilliam, 25, of Morristown, Tennessee, was sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Court Judge, to serve 110 months in federal prison for her role in a conspiracy to distribute methamphetamine.
Gilliam pleaded guilty in October 2018 to conspiring with Trinity Scott Johnson, 39, of Morristown, Tennessee; Truman Lee Smith, 24, of Russellville, Tennessee; Colby Scarlett, 20, of Morristown, Tennessee; Jessica James, 30, of Morristown, Tennessee; and others to distribute over 50 grams of methamphetamine in east Tennessee in 2017 and 2018. Johnson was sentenced in October 2018 to serve 204 months in federal prison. Smith was sentenced in November 2018 to serve 10 years in federal prison. In January 2019, Scarlett was sentenced to serve 10 years in federal prison. Finally, in February 2019 James was sentenced serve 15 years in prison.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department and FBI. Assistant U.S. Attorney Robert. M. Reeves represented the United States in court proceedings.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
This case was also the result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Madison County Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Steven Hathaway, 42, of De Ruyter, NY, pleaded guilty to attempted receipt of child pornography before U.S. District Judge Charles J. Siragusa. The charge carries a minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that the defendant engaged in online communications with an individual he believed to be a 12 year old girl. Over the course of several weeks, Hathaway engaged in sexually explicit conversations during which he asked for nude photographs and requested that the child meet in person to engage in sexual activity. At one point, the defendant purchased an iPhone for the child, which he placed in a location near the child’s home, so that the two could communicate and the child could send him photographs. Unbeknownst to Hathaway, the child was actually an undercover New York State Police Investigator.
On March 23, 2018, the defendant arranged to meet the child and was arrested by members of the New York State Police and Homeland Security Investigations.
The plea is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for May 20, 2019, before Judge Siragusa.
Lamar Man Sentenced to 12 Months Probation for Conversion of Mortgaged PropertyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that John Tyler Bible, age 27, of Lamar, Oklahoma, was sentenced to one year probation for Conversion Of Mortgaged Property, in violation of Title 18, United States Code, Section 658. The charges arose from an investigation by the Department of Agriculture Office of Inspector General.
The Information alleged that on or about June 6, 2012, and continuing through December 16, 2013, within the Eastern District of Oklahoma, the defendant, knowingly and with intent to defraud, willfully concealed, removed, disposed of, or converted to his own use certain property – cattle having a value in excess of $1,000.00 – and which was at the time of said disposition, mortgaged, pledged to and held by, United States Department of Agriculture-Farm Service Agency.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Christopher Wilson represented the United States.
Judge sentences man to nine years in prison in child porn caseRead the Press Release
MISSOULA—A man who admitted downloading child pornography to his cell phone was sentenced today to nine years in federal prison and 15 years of supervised release, U.S. Attorney Kurt Alme said.
Wes Brady Johnson, 49, formerly of Marion, pleaded guilty in October to possession of child porn.
Chief U.S. District Judge Dana L. Christensen presided at sentencing. Judge Christensen also ordered $3,000 restitution.
An investigation began in September 2016 when a Montana Internet Crimes Against Children Task Force agent received two tips that a user was uploading child porn with a Twitter account and that the account was connected to Johnson. Johnson’s cell phone was seized during a search of a Flathead County residence where he had been staying. Johnson said in an interview that he had been downloading child porn for about six months and that the files contained sexually explicit images of prepubescent girls.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the ICACTF, Flathead County Sheriff’s Office and Montana Division of Criminal Investigation.
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Jewelry District Business Owner Pleads Guilty to Money LaunderingRead the Press Release
LOS ANGELES – A precious metals trader based in the Los Angeles Jewelry District pleaded guilty today to a money laundering charge after being caught in an undercover operation where he agreed to conceal what was described to him as more than $200,000 in drug trafficking proceeds.
Saeed Elyahouzadeh, 53, of Westwood, who owns and operates R.S.D. Trading Co., entered his guilty plea to one felony money laundering charge before United States District Judge Dale S. Fischer.
According to a plea agreement filed in this case, between April 2015 and December 2017 Elyahouzadeh took part in four financial transactions with the intent to launder illicit drug proceeds through the use of his jewelry business. An undercover federal agent told Elyahouzadeh that the proceeds being laundered were the result of drug trafficking, according to court documents.
For example, on April 22, 2015, Elyahouzadeh met with an undercover law enforcement agent who asked him to “clean” $18,000 that was generated through cocaine sales, the plea agreement states. Elyahouzadeh agreed to launder the $18,000 in exchange for a $1,000 fee. In the weeks that followed that meeting, Elyahouzadeh arranged for multiple checks to be deposited into a bank account provided by the undercover agent, according to court documents. On three subsequent occasions – in June 2015, November 2017 and December 2017 – Elyahouzadeh agreed to launder a total of $200,000 from the undercover agent in exchange for a total of $11,000, court papers state. Typically, Elyahouzadeh would agree to launder the money in exchange for between 5 percent and 6 percent of the given amount. In the weeks following each of those meetings with the undercover agent, Elyahouzadeh arranged for multiple checks to be deposited into the bank account that the undercover agent provided, according to his plea agreement.
Judge Fischer is scheduled to sentence Elyahouzadeh on July 15 at which time he will face a statutory maximum sentence of 20 years in federal prison.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, IRS Criminal Investigation, and the Drug Enforcement Administration
This matter is being prosecuted by Assistant United States Attorney Aron Ketchel of the Public Corruption and Civil Rights Section.
Jefferson County Man Pleads Guilty to Carjacking, Use of a Firearm and Conspiracy to Possess and Distribute MethRead the Press Release
St. Louis, MO –Paris John Earnest Devine, 26, pleaded guilty to three counts – carjacking; brandishing a firearm during a crime of violence; and conspiracy to possess with the intent to distribute over 500 grams of methamphetamine. Devine appeared today before U.S. District Henry Autrey who accepted his plea and set his sentencing date for May 14, 2019.
According to the plea agreement, in the late evening hours of September 28, 2017, J.J. was getting off work as a pizza delivery driver when he drove to a MetroLink station in search of marijuana. After inquiring from several people, Paris Devine and Ramone Thomas, who were strangers to J.J., informed J.J. that they could assist him in procuring marijuana. J.J. invited Devine and Ramone Thomas into his vehicle, a black 2013 Kia Forte, before J.J. drove them around for between 30 and 45 minutes.
After stopping at a gas station in the area of 5415 Virginia Avenue, Devine produced a handgun and demanded that J.J. exit his car and surrender it to Devine and Thomas. J.J. surrendered the Kia Forte and then contacted police. After J.J.’s Kia Forte was recovered, having been used in the herein referenced home invasion, J.J. was shown two photographic lineups containing photographs of Devine and Ramone Thomas. J.J. positively identified both and stated that Devine was the subject who brandished the firearm at him.
In the evening hours of October 10, 2017 and into the early morning hours of October 11, 2017, co-defendant Kathleen Hydar invited co-defendant Courtney Brown and his associates, including defendant Paris Devine, to come from St. Louis City down to Jefferson County, Missouri. Hydar had informed Brown that she knew of a way for them to “make some money” that evening. Brown picked up Hydar in a vehicle being driven by Ramone Thomas. Also in the car were Paris Devine, Raymond Seay, and an unindicted subject.
When Hydar got into the vehicle, she informed Devine and other members of the group that she knew of a location where they could steal large amounts of methamphetamine, United States currency, and firearms. Hydar instructed the driver, Ramone Thomas, to make a stop at another residence prior to going to the aforementioned target location. While at this residence, Hydar described, in detail, where Brown, Devine, Seay, and Ramone Thomas could locate a large amount of methamphetamine, firearms, and currency within a trailer owned by Chad Coffman. After describing where the others could locate these items, Hydar got back into the vehicle and proceeded to direct the driver, Ramone Thomas, to 765 Chancellor Drive, the address of the trailer belonging to Coffman. Hydar also made a phone call to Coffman to ensure he would not be home when the group arrived to burglarize his trailer.
When they arrived at Coffman’s trailer shortly before 4:00am on October 11, 2017, Brown, Devine, Seay, and Thomas then exited the vehicle and kicked in the main door to the trailer and made entry.
Shortly after Seay, Brown, Devine, and Ramone Thomas entered the trailer, Coffman arrived home on his motorcycle and interrupted the burglary. Hydar jumped into the driver’s seat of the vehicle and fled the scene with the unindicted subject in the back seat.
While in the trailer, when Thomas, Seay, Devine, and Brown heard Coffman arrive home, Ramone Thomas passed off a firearm he had brought to the residence to co-defendant Courtney Brown, and they all attempted to flee from the trailer. As Brown exited the residence, he turned the corner, raised the firearm, and discharged it one time, believing he was shooting at Coffman. The projectile struck Ramone Thomas in front of the residence, killing him.
Officers arrived on scene and obtained a search warrant for the trailer. A search of the trailer revealed that Coffman was in possession of what lab analysis confirmed to be approximately five (5) pounds of methamphetamine. Devine was apprehended by investigators in Jefferson County, Missouri, several hours after the burglary.
Chad Coffman pled guilty last year and was sentenced to 96 months in prison for possession with intent to distribute methamphetamine.
If convicted, the charge of carjacking carries a penalty of imprisonment of not more than 15 years and a $250,000 fine; brandishing a firearm carries a penalty of imprisonment of not more than life and a $250,000 fine; and conspiracy to possess with the intent to distribute over 500 grams of methamphetamine carries a penalty of imprisonment of note more than life, a $10,000,000 fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jefferson County Sheriff’s Office, the Major Case Squad and the Jefferson County Prosecutor’s Office.
Houston Resident Convicted of Fraud Scheme Linked to Hurricane HarveyRead the Press Release
HOUSTON ‐ A Houston area resident has entered a guilty plea to fraud in connection with a major disaster for her scheme to defraud the Federal Emergency Management Agency (FEMA), announced U.S. Attorney Ryan K. Patrick.
Patricia Rodriguez, 38, of Houston, entered her guilty plea today before U.S. District Judge Vanessa Gilmore.
As part of that plea, Rodriguez admitted she submitted a false or fraudulent application to FEMA for government assistance in reference to property damage sustained in Hurricane Harvey. The property was located in Houston but which investigators determined not to have sustained any damage.
Rodriguez admitted the application was fraudulent as it contained a falsified letter purporting to be from her landlord. The letter claimed Rodriguez bought the damaged dwelling for $7,000 on Feb. 9, 2013, and would thereafter lease the lot for $300 per month. The landlord’s name was misspelled and was drafted without his authorization and consent.
As a result of her scheme, Rodriguez received $33,300 from FEMA, all of which was sent to into her personal bank account.
Sentencing has been set for April 29, 2019, before U.S. District Judge Vanessa Gilmore. At that time, Rodriguez faces a maximum of 30 years in federal prison a possible $250,000 fine. She was permitted to remain on bond pending that hearing.
The Department of Homeland Security - Office of Inspector General (OIG) and the Small Business Administration – OIG conducted the investigation. Assistant U.S. Attorney Michael Day is prosecuting the case.
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims and before giving contributions to anyone soliciting donations on behalf of disaster victims as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Members of the public who suspect fraud, waste, abuse or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707 or email it to [email protected] (link sends e-mail). Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Genetic Testing Company Agrees to Pay $1.99 Million to Resolve Allegations of False Claims to Medicare for Medically Unnecessary TestsRead the Press Release
The Justice Department announced today that GenomeDx Biosciences Corp. (GenomeDx) has agreed to pay $1.99 million to resolve allegations that it violated the False Claims Act, 31 U.S.C. §§ 3729 et seq., by submitting claims to Medicare for the Decipher® post-operative genetic test for prostate cancer patients. GenomeDx is a genetic testing laboratory headquartered in Vancouver, British Columbia, with operations based in San Diego.
“The Department of Justice is committed to ensuring that Medicare reimburses costs for laboratory testing that are reasonable and necessary for the individual patient,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Medically unnecessary and unproven testing increases costs for federal health care programs.”
The United States alleged that GenomeDx knowingly submitted claims for the Decipher test to Medicare between September 2015 and June 2017 that were not medically reasonable and necessary because the prostate cancer patients did not have risk factors necessitating the test, including pathological stage T2 disease with a positive surgical margin, pathological stage T3 disease or rising Prostate-Specific Antigen (PSA”) levels after an initial PSA nadir.
“As this settlement demonstrates, we are committed to protecting the integrity of the Medicare program and will hold health care providers accountable under the False Claims Act when they engage in improper billing,” said Robert S. Brewer, Jr., United States Attorney for the Southern District of California. “This settlement is also another example of our commitment to vigorously investigate cases brought to our attention by whistleblowers. We commend the two employees of GenomeDx who had the courage to come forward and work with investigators.”
“Lab tests and other medical services should only be conducted or provided when medically necessary,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Whistleblowers play a critical role in keeping entities honest and accountable, and are encouraged to report suspected waste, fraud and abuse by those billing federal healthcare programs.”
“The message is clear, if you take advantage of programs like Medicare, you will be held accountable,” said John Brown, FBI Special Agent in Charge of the San Diego Field Office. “Companies who engage in filing false claims to generate more corporate revenue are not only stealing from the federal taxpayer, but also from people who rely on federally funded programs for their health care needs.”
The settlement resolves allegations originally brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers will receive $348,316.50 from the False Claims Act recovery.
The investigation was conducted by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Southern District of California, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation.
The case is captioned United States ex rel. La Fleur et al. v. GenomeDX Biosciences Corp., No. 17-CV-1959 (S.D. Cal.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Former San Diego Unified School Teacher Sentenced for Receipt of Child PornographyRead the Press Release
Assistant U.S. Attorney Janet Cabral (619) 546-8715
NEWS RELEASE SUMMARY – February 11, 2019
SAN DIEGO – Former San Diego Unified School District teacher David Gordon Weaks was sentenced today to 70 months in prison following his guilty plea to one count of receipt of images of minors engaged in sexually explicit conduct.
Weaks was a fifth-grade teacher at Rosa Parks Elementary School up until the time of his arrest. He has been in custody since federal agents executed a search warrant at his home and arrested him on April 19, 2018. Weaks’ term of custody will be followed by an eight-year term of supervised release, including restrictions on his use of the internet.
Weaks, 60, came to the attention of agents from Homeland Security Investigations in early April 2018, when agents found that a computer associated with Weaks’ residence was making files of child pornography available for downloading by others through a publicly available peer to peer file sharing network. Analysis of the devices seized from Weaks’ residence at the time of the April 19, 2018, search warrant, revealed that child pornography files were found on a desktop computer, two laptop computers and a backup hard drive.
DEFENDANT Criminal Case No. 18cr2469-LAB
David Gordon Weaks Age: 60 San Diego, CA
SUMMARY OF CHARGE
Title 18, United States Code, Section 2252(a)(2) – Receipt of Images of Minors Engaged in Sexually Explicit Conduct
Maximum penalties: 20 years in prison (with a mandatory minimum of 5 years in prison); $250,000 fine; Mandatory Special Assessment of $100; Special Assessment of $5,000 under Justice for Victims of Trafficking Act of 2015; Restitution; Forfeiture
INVESTIGATING AGENCIES
Homeland Security Investigations
Former Ceo of Alaska-Based Fiber Optic Cable Company Pleads Guilty to Wire Fraud and Aggravated Identity Theft for Defrauding New York Investment CompaniesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ELIZABETH ANN PIERCE, the former Chief Executive Officer of a telecommunications company based in Anchorage, Alaska, pled guilty today in Manhattan federal court to wire fraud and aggravated identity theft in connection with a scheme to use forged guaranteed revenue contracts fraudulently to induce investors to invest more than $250 million into her company for the construction of a fiber optic cable network in Alaska. PIERCE pled guilty before U.S. District Judge Edgardo Ramos.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As she admitted today, Elizabeth Ann Pierce engaged in a brazen, multi-year scheme to obtain over $250 million from investors by misrepresenting that she had guaranteed revenue contracts with multiple telecommunications services companies. But in fact, the defendant faked those contracts, forged other people’s signatures on them, and then lied to cover up her fraud. She abused her executive position and is now being held accountable for her crimes.”
According to the Complaint, the Indictment, statements made in court, and publicly available documents:
Until July 2017, PIERCE was the chief executive officer of Quintillion, a telecommunications company based in Anchorage, Alaska that built, operates, and markets a high-speed fiber optic cable system (the “Fiber Optic Cable System”). This System consists of three segments: a subsea segment that spans the Alaskan Arctic; a terrestrial segment that runs north to south along the Dalton Highway; and a land-based network of fibers that connects the subsea and terrestrial segments. The Fiber Optic Cable System is connected to the lower 48 states through other existing networks.
Between May 2015 and July 2017, PIERCE engaged in a scheme to induce two investment companies to provide more than $250 million to construct the Fiber Optic Cable System by providing them with eight forged broadband capacity sales contracts and related order forms under which Quintillion would obtain guaranteed revenue once the Fiber Optic Cable System was built (the “Fake Revenue Agreements”). Under the Fake Revenue Agreements, four telecommunications services companies appeared to have made binding commitments to purchase specific wholesale quantities of capacity from Quintillion at specified prices. The cumulative value of the Fake Revenue Agreements was more than $24 million during the first year of the subsea segment’s operation, approximately $10 million during the first year of the terrestrial segment’s operation, and approximately $1 billion over the life of the Fake Revenue Agreements. In reality, the Fake Revenue Agreements were completely worthless because PIERCE had forged the counterparties’ signatures.
Certain of the Fake Revenue Agreements never existed at all, while others were falsified versions of genuine revenue agreements. PIERCE fabricated the terms of the false versions of the agreements to make them more favorable to Quintillion and, therefore, more appealing to investors than the genuine agreements. For example, under one of the Fake Revenue Agreements, the customer purportedly agreed to buy increasing amounts of gigabits per second of capacity over a period of 20 years from Quintillion. That agreement, if genuine, would have assured Quintillion hundreds of millions of dollars in future revenue. In reality, negotiations over that deal had ended unsuccessfully, which fact PIERCE never disclosed to the investors. Under another Fake Revenue Agreement, the customer purportedly agreed to buy a fixed, predetermined amount of capacity from Quintillion regardless of subsequent market conditions. In truth, that customer was not obligated to buy any capacity.
After the terrestrial system was built, PIERCE attempted to prevent the discovery of the Fake Revenue Agreements by accelerating the timing of incoming payments under certain genuine agreements to make those payments appear to be based on the Fake Revenue Agreements. PIERCE also sought to prevent Quintillion and the investors from invoicing one of the customers that had no real contract with Quintillion by fabricating e-mail correspondence PIERCE purportedly had with that customer. PIERCE’s scheme started to unravel when a customer disputed invoices that it received from Quintillion pursuant to one of the Fake Revenue Agreements. Shortly thereafter, in the midst of Quintillion’s internal investigation, PIERCE abruptly resigned. Quintillion self-reported PIERCE’s conduct to the Department of Justice.
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PIERCE, age 55, now of Austin, Texas, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison, and eight counts of aggravated identity theft, each of which carries a mandatory 2-year term of imprisonment, of which at least 2 years must be consecutive to any term of imprisonment imposed on the wire fraud count.
PIERCE is scheduled to be sentenced by U.S. District Judge Edgardo Ramos on May 16, 2019, at 11:00 a.m.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah Lai and Vladislav Vainberg are in charge of the prosecution.
Federal Court Bars Louisiana Tax Return Preparer from Preparing Tax ReturnsRead the Press Release
A federal court in New Orleans, Louisiana, entered a permanent injunction judgment against Adrienne Robinson Thomas, doing business as AT Tax Services, barring her from preparing federal tax returns for others, the Justice Department announced today.
In its order, the court noted that the government’s complaint alleged that Thomas prepared fraudulent tax returns for her customers and filed false tax returns using taxpayers’ identifying information without their knowledge or authorization.
As stated in the court’s order, the government’s complaint also alleged that Thomas unlawfully prepared federal tax returns that lowered her customers’ federal tax liabilities by claiming bogus earned income tax credits, bogus child tax credits, false education credits, and fabricated household employee income and withholdings.
In addition, the order recites the government’s allegations that Thomas prepared fraudulent returns for taxpayers without the knowledge of those taxpayers, via identity theft.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Fall River Man Admits to Drug Trafficking Through the US MailRead the Press Release
PROVIDENCE - A Fall River man pleaded guilty today to federal charges related to his participation in a conspiracy to traffic multiple kilograms of cocaine from Puerto Rico to Rhode Island through the U.S. Postal Service.
David J. Knight, 48, admitted to the Court that for approximately eight months beginning in August 2016, he made multiple trips to Puerto Rico for the purpose of purchasing large quantities of cocaine that were then packaged and shipped through the U.S. Postal Service to various addresses in Rhode Island.
An investigation by U.S. Postal Inspection Service agents determined that Knight made at least nine trips to Puerto Rico to acquire approximately 250 grams of cocaine per trip. Through his participation in the conspiracy, Knight acquired at least two thousand two hundred fifty grams, or more than two kilograms of cocaine.
Appearing before U.S. District Court John J. McConnell, Jr., Knight pleaded guilty to conspiracy to possess more than one kilogram of cocaine with the intent to distribute and possession of more than one kilogram of cocaine with the intent to distribute, announced United States Attorney Aaron L. Weisman and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston.
Knight is scheduled to be sentenced on June 11, 2019.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
Knight is the ninth person charged in a series of ongoing investigations by U.S. Postal Inspection Service agents to identify and interrupt the delivery of packages of narcotics shipped through the U.S. Postal Service to addresses in Rhode Island, to identify individuals responsible for making the shipments, and to identify the intended recipients of the packages. Through these investigations, U.S. Postal Inspection agents have intercepted more than 100 packages containing 250 grams or more of cocaine, shipped from Puerto Rico to Rhode Island.
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East Longmeadow Man Arrested for Marijuana TraffickingRead the Press Release
BOSTON – An East Longmeadow man was arrested on Friday, Feb. 8, 2019, and charged in federal court in Springfield for marijuana trafficking.
John Americo Pereira, 33, was charged with possession with intent to distribute marijuana. He appeared in federal court in Springfield this afternoon and was ordered detained pending a detention hearing.
According to court documents, since January 2018, law enforcement have been investigating Pereira and others for distributing marijuana. A search warrant was executed on Feb. 8, 2019, at Pereira’s home where agents discovered approximately $688,000 in a safe and 260 pounds of suspected marijuana. Additional search warrants have been executed at locations in East Longmeadow, Springfield and Ellington, Conn., where law enforcement have discovered, in total, more than 1,000 pounds of marijuana.
Pereira faces a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. 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 Office; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office and Trial Attorney Marianne Shelvey, of the U.S. Department of Justice, Criminal Division, Organized Crime and Gang Section, are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
East Hartford Man Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALEXANDER PEDRAZA, 28, of East Hartford, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of sex trafficking of a minor.
According to court documents and statements made in court, Pedraza promoted the prostitution of a 16-year-old girl by advertising the victim’s prostitution services and soliciting clients on Backpage.com. In March 2017, he harbored the victim in motel rooms he rented in Hartford, Windsor and East Windsor, where clients met the victim and paid for sex acts. Pedraza also had sexual contact with the victim.
The investigation also revealed that, between September and December 2016, Pedraza engaged in sex trafficking of at least two 18-year-old females.
Pedraza has been detained since his arrest on May 26, 2017.
When he is sentenced, Pedraza faces a mandatory minimum term of imprisonment of 10 years and a maximum term of life imprisonment. A sentencing date is not scheduled.
This matter is being investigated by the Federal Bureau of Investigation and the East Windsor Police Department, through the Connecticut Human Trafficking Task Force. The case is being prosecuted by Assistant U.S. Attorneys Neeraj N. Patel and Sarala V. Nagala.
Durham Woman Who Defrauded Elderly Victim Pleads GuiltyRead the Press Release
Winston-Salem, N.C. – A woman who embezzled from an older person for whom she was a caretaker pleaded guilty to federal charges on Friday, February 8, announced United States Attorney Matthew G.T. Martin for the Middle District of North Carolina.
Teresa Denise Schneider, 52, of Durham, North Carolina, pleaded guilty to one count of bank fraud and one count of wire fraud, in front of the Honorable Loretta C. Biggs, United States District Judge for the Middle District of North Carolina.
“We should honor our elders, not steal from them. Ms. Schneider abused her position of trust as caretaker. We will aggressively pursue those who commit such acts,” said U.S. Attorney Martin, adding, “I commend the Department of Treasury Task Force, NC SBI, and AUSA Chut who worked diligently to make sure this defendant is held accountable for exploiting a vulnerable victim and abusing the trust of the victim’s family.”
According to court documents, Schneider began caring for the victim in 2010 and continued to do so until the victim’s death of natural causes at the age of ninety in 2013. During this time, family members of the victim, who visited almost daily, became concerned about Schneider’s involvement in the victim’s finances. In September 2011, a family member instructed Schneider to provide monthly copies of all bank and credit card statements. Schneider complied, but after the victim’s death, the family discovered that the account statements Schneider provided had been altered to remove or conceal transfers of funds to Schneider. In total, Schneider embezzled approximately $370,000 from the victim.
Schneider’s main source for converting the victim’s funds to her own use involved the victim’s credit card. Schneider transferred funds from the victim’s deposit and investment accounts to overpay wildly the credit card by tens of thousands of dollars. Schneider then converted this money in two ways. First, she made numerous unauthorized purchases on the card, including paying for spa treatments, travel, college tuition, dining, and expensive shopping sprees at department stores. Second, Schneider used a direct transfer feature of the credit card to transfer over $100,000 to her personal bank account.
Schneider knew that she was not entitled to these funds and not authorized to make these transfers.
The sentencing is set for July 18, 2019, at 9:30 a.m. in Winston-Salem. Schneider faces up to thirty years in prison, a fine of up to $1,000,000, and supervised release of not more than five years following release from prison. At sentencing Schneider will also be ordered to pay restitution.
This case was investigated by the United States Department of Treasury Office of Inspector General Task Force and the North Carolina State Bureau of Investigation. Assistant United States Attorney Frank J. Chut, Jr. prosecuted the case.
Elder abuse includes physical abuse, caregiver neglect, financial exploitation, psychological abuse, sexual abuse, and abandonment. Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
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Detroit Man Sentenced to 156 months for Conspiracy to Distribute Fentanyl and HeroinRead the Press Release
ASHLAND, Ky. — Leonard Anthony Wright, 33, of Detroit, was sentenced Monday, to 156 months in federal prison, by United States District Judge David L. Bunning, for conspiracy to distribute 40 Grams or more of Fentanyl and conspiracy to distribute 100 Grams of more of Heroin.
In April 2017, law enforcement members of the Huntington FBI Task Force, in conjunction with the Kentucky State Police and the Ashland Police Department, seized 209 grams of fentanyl, which Wright transported from Detroit to the Tri-State area of Ashland, Huntington, W.Va., and Ironton, Ohio. In August 2017, the same law enforcement agencies sized 876 grams of heroin, which had also been transported from Detroit to the Tri-State area. In September 2018, Wright entered a plea of guilty, admitting that he orchestrated the delivery of the fentanyl and heroin.
“The defendant transported significant quantities of the deadly drugs fentanyl and heroin to the Tri-State area, and now he faces a lengthy sentence of imprisonment for his illegal actions,” said United States Attorney Robert M. Duncan, Jr. “I commend law enforcement for their coordination and cooperation during this investigation. The combined efforts of the law enforcement agencies involved helped remove substantial amounts of dangerous drugs from the streets and likely saved lives.”
Under federal law, Wright must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for four years.
U.S. Attorney Duncan; Robert Allan Jones, Special Agent in Charge of the FBI Pittsburgh; Richard Sanders, Commissioner of the Kentucky State Police; and Todd Kelley, Chief of the Ashland Police Department, jointly made the announcement.
The FBI, KSP, and Ashland Police Department conducted the investigation. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
Convicted Felon Sentenced to Federal Prison for Possessing a FirearmRead the Press Release
A two-time felon who possessed a three different firearms on three different occasions was sentenced to two years in federal prison today.
Chad Michael Chase, age 42, from Algona, Iowa, received the prison term after an August 20, 2018, guilty plea to one count of being a felon in possession of a firearm.
Evidence from the change of plea and sentencing hearing revealed defendant had a history of violence, five OWI convictions (including two felony violations), had illegally possessed three firearms on three occasions, and had twice been disarmed by local police before being prosecuted federally.
Chase was sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand. Chase was sentenced to 24 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Chase is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of the 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 violence crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violence offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Kossuth County Sheriff’s Office and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-03008.
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Colombian Nationals Sentenced to 45 and 50 Years in Prison for Participating in Human Smuggling Event that Resulted in the Rape and Murder of Cuban NationalsRead the Press Release
Two Colombian nationals were sentenced to 45 and 50 years in prison for their roles in a scheme to smuggle illegal aliens from Colombia into the United States, which resulted in the rape of one and the death of two Cuban nationals.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Carlos Emilio Ibarguen Palacios, 27, and Jhoan Stiven Carreazo Asprilla, 23, Colombian nationals, extradited to the United States in 2017 and 2018 respectively, to face these charges, previously pleaded guilty to one count of conspiracy to encourage and induce aliens to come to the Unites States resulting in death as well as three counts of encouraging and inducing aliens to come to the United States resulting in death and placing in jeopardy the lives of any person. Ibarguen Palacios and Carreazo Asprilla were sentenced to serve 540 months and 600 months in prison, respectively, by U.S. District Judge Jose E. Martinez of the Southern District of Florida, who also ordered them to serve three years of supervised release following their prison sentence.
“The heinous acts committed by the defendants in this case provide a stark reminder that alien smuggling is inherently dangerous—and can be deadly,” said Assistant Attorney General Benczkowski. “But for the desperate escape of one of the victims, the defendants’ acts would have remained hidden with the bodies they left behind. The substantial prison sentence imposed today against these two smugglers demonstrates the Department of Justice’s continuing commitment to prosecute those who violate this country’s immigration laws.”
“The defendants’ carried out a fatal human smuggling trip for which two victims paid the ultimate price,” said U.S. Attorney Fajardo Orshan. “But for the strength of the surviving victim, the defendants’ brutality would have been washed away at sea. The significant federal prison sentences imposed against the smugglers cannot bring back life but we hope can serve to thwart the dangerous business of alien smuggling.”
“These two individuals were involved in one of the most cold and callous cases investigated by HSI Miami,” said HSI Special Agent in Charge Salisbury. “Although the sentences will not return the victims to their loved ones, it does bring justice for their friends and family. HSI will continue to aggressively investigate, pursue and shut down these organizations that are involved in this heinous criminal act.”
According to the court record, including agreed-upon factual proffers, since 2014, Carlos Emilio Ibarguen Palacios, Jhoan Stiven Carreazo Asprilla, and their co-defendants, organized and arranged the unlawful smuggling of illegal aliens, transporting them across Colombia toward the Panamanian border, en route to the United States. In 2016, three Cuban nationals arranged with, and paid, the defendants to transport them from Colombia to Panama, as they traveled to the United States, intending to arrive in Miami.
On Sep. 7, 2016, during a portion of their journey, the three victims – two men and a woman – were delivered by co-defendant Fredis Valencia Palacios to a boat captained by Ibarguen Palacios. After some delay, Ibarguen Palacios was joined by Carreazo Asprilla and they began their journey to Panama. During the boat trip, Ibarguen Palacios and Carreazo Asprilla pulled a knife and gun, respectively, on the victims. Ibarguen Palacios tied the wrists of the two male passengers and then threw them overboard, anchoring them with rope to the inside of the boat. The surviving male victim reported that he heard Ibarguen Palacios and Carreazo Asprilla sexually assault the female victim before cutting her throat and murdering her. The surviving victim also heard Ibarguen Palacios and Carreazo Asprilla cut the other male victim’s throat, killing him. While his fellow travelers were being murdered, the survivor managed to free himself and escape by swimming away. Ibarguen Palacios and Carreazo Asprilla left him for dead.
The next day, a local fisherman discovered the survivor, who was subsequently rescued by the Colombian Navy. The survivor directed the Colombian authorities to the place where the murders happened, and the Colombian authorities retrieved the bodies. Their throats and bellies had been cut open and they were tied up together and submerged in the water. Shortly thereafter, Ibarguen Palacios and Carreazo Asprilla were located and arrested.
Co-defendant Valencia Palacios who assisted in arranging this smuggling event was sentenced to serve 15 years in prison on Dec. 4, 2018 before U.S. District Judge Martinez.
This case was investigated by HSI Miami, with assistance from the HSI Bogota field office. The Government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation. The Criminal Division’s Office of International Affairs provided significant support with the defendants’ extradition. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida prosecuted the case.
Citrus Heights Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Emanuel Mois, 25, of Citrus Heights, pleaded guilty today to receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, between November 2016 and February 2017, Mois knowingly received and saved images depicting children engaged in sexually explicit activity onto his cellphone. At the time he received the images, Mois was on parole pursuant to a California state conviction for possession/distribution of child pornography, and had a prior conviction by the State of California for sexual battery of a minor.
This case is the product of an investigation by the Federal Bureau of Investigation, the Citrus Heights Police Department, and the Roseville Police Department. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
Mois is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on May 13, 2019. He faces a minimum statutory penalty of 15 years in prison and a maximum penalty of 40 years in prison, as well as a $250,000 fine. 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.
Canadian man sentenced to 11 years in prison for sending scores of messages over social media attempting to coerce an 11-year-old from Ohio to engage in sexual activityRead the Press Release
A Canadian man was sentenced to 11 years in federal prison for sending scores of messages over social media attempting to coerce an 11-year-old from Ohio to engage in sexual activity.
Daniel Jason Wnek, 28, of Toronto, pleaded guilty last year to one count of coercion and/or enticement of a minor.
Wnek contacted the victim, identified as H.M., via Instagram in 2017. Wnek used the photograph of a younger male and falsely told H.M. he was 14 years old. Wnek eventually switched their communication to Snapchat, according to court documents.
Wnek eventually sent messages to H.M. that were sexual in nature, such as: “Would u lie on top of me when we meet?” and “Yea x we can take our pants off n I’ll bring a blanket,” according to court documents.
Wnek on Nov. 2, 2017 sent H.M. a sexually explicit photo via Snapchat. He also suggested picking her up, engaging in sexual activity and asked H.M. to send him sexually explicit photos of herself, according to court documents.
H.M.’s family contacted police and on Nov. 3, in the presence of law enforcement, another person posing as H.M. engaged in a Snapchat conversation with Wnek. He continued to solicit H.M. for sex, sent H.M. sexually explicit images and asked H.M. to send him sexually explicit images of her, according to court documents.
On Nov. 13, Wnek advised who he thought was H.M. that he planned to travel to Disney World in Florida for his birthday. Wnek was arrested after traveling from Toronto to Orlando, according to court documents.
“This case demonstrates how predators will target our children over social media by posing as people different from who they truly are,” U.S. Attorney Justin E. Herdman said. “Parents and trusted adults need to make it their business to know who their kids are communicating with.”
“Daniel Jason Wnek traveled thousands of miles in order to meet up with a child for sex after luring the child online,” said FBI Special Agent in Charge Eric B. Smith. “We must protect our children from online predators. The FBI will continue to pursue these vicious criminals and is pleased that Mr. Wnek will not be able to threaten children's innocence or lives any longer.
The investigating agency in this case is the Federal Bureau of Investigation and the Auglaize County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman
Bunch Man Pleads Guilty to Assaulting Postal Employee with A Deadly WeaponRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jeremy Lee Poafpybitty, a/k/a “Chooch”, age 33, of Bunch, Oklahoma, entered a guilty plea to Assaulting An Employee Of The United States With A Deadly And Dangerous Weapon in violation of Title 18, United States Code, Sections 111(a)(1) and (b), punishable by not more than 20 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that on or about July 24, 2018, within the Eastern District of Oklahoma, the defendant did knowingly, intentionally, and forcibly, with the use of a deadly and dangerous weapon, to wit: a knife, assault, oppose, impede, intimidate, and interfere with and did inflict bodily injury to an employee of the United States Postal Service while in and on account of the performance of official duties.
The charges arose from an investigation by the United States Postal Inspection Service.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Shannon Henson represented the United States.