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Thursday 6 December 2018
Joseph Lee King Sentenced to 48 Months in Federal Prison for Domestic ViolenceRead the Press Release
GRAND RAPIDS, MICHIGAN – Joseph Lee King, 59, from Peshawbestown (Leelanau County), Michigan, was sentenced to 48 months in federal prison for Domestic Assault – Habitual Offender, U.S. Attorney Andrew Byerly Birge announced today. In addition to the prison term, U.S. District Judge Paul L. Maloney imposed a 2-year term of supervised release that will commence once King is released from imprisonment.
King pled guilty on July 26, 2018. He admitted that the assault occurred during an argument on the Grand Traverse Band of Ottawa and Chippewa Indians’ Reservation. King was subject to increased penalties under federal law because he had at least two prior convictions for domestic violence. The United States had jurisdiction over the case because it occurred in Indian Country.
In its sentencing memorandum, the U.S. Attorney’s Office noted "a witness observed the defendant grabbing the victim by the throat, practically lifting her off the ground by the neck, and then throwing her to the ground. Police observed bruising and discoloration on and around the victim’s neck." The United States sought a significant sentence because of King’s conduct, his long criminal history, and his pattern of offending against women. The United States noted that King had previously strangled or attempted to strangle his domestic partners. "Such conduct is extremely dangerous and poses great risk to its victims," the United States argued. In light of the facts that domestic violence often causes severe, ongoing harm to women and is a risk factor for future domestic homicide, the United States emphasized the need to protect the public and promote respect for the law.
The Grand Traverse Band Tribal Police Department and the Federal Bureau of Investigation (FBI) investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
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James Dolan to Pay $609,810 Civil Penalty for Violating Antitrust Premerger Notification RequirementsRead the Press Release
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission (FTC), filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against James Dolan for violating the premerger notification and waiting period requirements of the Hart-Scott-Rodino (HSR) Act of 1976 when he acquired voting securities of Madison Square Garden Company in 2017. At the same time, the department filed a proposed settlement, subject to approval by the court, under which Dolan has agreed to pay a $609,810 civil penalty to resolve the lawsuit.
The HSR Act imposes notification and waiting period requirements for transactions meeting certain size thresholds so that they can undergo premerger antitrust review. Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the department. The maximum civil penalty for an HSR violation, which is adjusted annually, is currently $41,484 per day.
Further details about this matter are described in the FTC’s press release issued today, and in the attached complaint and competitive impact statement.
Consistent with the requirements of the Tunney Act, the proposed settlement, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Roberta S. Baruch, Special Attorney, United States, c/o Federal Trade Commission, 600 Pennsylvania Avenue, NW, CC-8407, Washington, D.C. 20580. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
James Clark of Better Family Life of the Eastern District of MissouriRead the Press Release
St. Louis — Acting Attorney General Matthew Whitaker announced today that 16 awards will be given during the 2018 Project Safe Neighborhoods (PSN) National Conference, including one recipient in the Eastern District of Missouri, will receive a Project Safe Neighborhoods Award. These awards recognize individuals and groups for their dedication and contribution to the success of PSN.
In the Eastern District of Missouri, James Clark of Better Family Life will be honored with an award.
"Project Safe Neighborhoods is making our prosecutions more targeted and more effective—and that makes the American people safer," said Acting Attorney General Whitaker. "Today the Department recognizes 16 examples of those who go above and beyond the call of duty in using PSN to reduce violent crime. We had a lot of impressive nominees, but even with tough competition, these 16 stood out. I want to thank each one of them for their service and congratulate them on a job well done."
In the Eastern District of Missouri, the following individual was recognized for the following award:
The Project Safe Neighborhoods Award for Outstanding Community Involvement to the PSN Program has been awarded to James Clark, Vice President of Community Outreach, for Better Family Life, Inc. (BFL), a community development organization whose mission is to promote positive and innovative changes within the St. Louis Metropolitan area through cultural, economic, and educational programs. With the help of staff at BFL, Clark has developed and implemented a Gun Violence De-escalation Program that has successfully thwarted numerous interpersonal feuds between individuals in and around the St. Louis area that, but for Clark’s intervention, would have devolved into violent encounters. Clark’s and BFL’s efforts have helped to save multiple lives. Through collaboration with the U.S. Attorney’s Office for the Eastern District of Missouri, Clark has and will continue to meet with and train other U.S. Attorneys’ Offices around the country that seek to establish de-escalation programs in their districts.
Husband and Wife Sentenced on Federal Health Care Fraud ChargesRead the Press Release
Charlottesville, VIRGINIA – A husband and wife, who enriched themselves by defrauding the Virginia Medicaid program, were sentenced this week in U.S. District Court on federal health care fraud and related charges, United States Thomas T. Cullen and Virginia Attorney General Mark Herring announced.
Dennis Gowin, 67, of Dillwyn, Va., was sentenced earlier this week to twelve months in prison, followed by two years of supervised release. He was also ordered to pay restitution in the amount of $210,593, and a fine of $5,500. Gowin previously pleaded guilty to one count of health care fraud, one count of wrongful disclosure of individually identifiable healthcare information, and one count of possession of a firearm by a previously convicted felon. Cheryl Gowin, 65, also of Dillwyn, was sentenced earlier this week to three years of probation with the first six-months on house arrest, three years of supervised release, ordered to pay restitution in the amount of $210,593, and a $2,000 fine. She previously pleaded guilty to one count of health care fraud and one count of wrongful disclosure of individually identifiable healthcare information.
“Health-care fraud, in its various forms, costs the U.S. taxpayers billions of dollars every year and substantially reduces the quality of care for those who need it most,” U.S. Attorney Cullen stated today. “We are committed to working with our federal, state, and local partners, including the Virginia Attorney General’s Office, to prosecute those who exploit our health-care system and, in so doing, violate the public’s trust.”
“The Gowins defrauded taxpayers and families who trusted the couple to provide counseling and care to their loved ones,” Attorney General Herring said today. “We will continue to hold people like this to account when they break the law by lying, cheating, stealing from, or defrauding important healthcare programs.”
According to evidence presented at previous hearings by Assistant United States Attorney Ronald M. Huber, from May 2013 through February 2016, Dennis Gowin was a director of Hope for Tomorrow Counseling, an outreach program that provided mental health counseling to children, adolescents, adults, and families throughout the Commonwealth. Cheryl Gowin was likewise employed by Hope for Tomorrow as a Resident-in-Counseling (i.e. counselor in training). In addition, Dennis Gowin was the Executive Director of Discovery Counseling-Virginia, a counseling group established by the Gowins.
The healthcare fraud conviction resulted from Dennis and Cheryl Gowins’ failure to disclose Dennis’ previous felony conviction on multiple applications related to employment, enrollment, and credentialing with several employers and heath care entities. These false statements enabled Dennis Gowin to become a Licensed Professional Counselor in Virginia, obtain employment and for the Gowins to receive payment for health insurance providers, including Virginia Medicaid. The conviction for wrongful disclosure of individually identifiable healthcare information resulted from the Gowins’ removal of over 100 patient files from Hope for Tomorrow without permission from Hope for Tomorrow or the individual patients. These files were returned to Hope for Tomorrow after being discovered during the execution of a federal search warrant at the Gowins’ residence.
The investigation of the case was conducted by the Office of the Virginia Attorney General – Medicaid Fraud Control Unit, United States Department of Health and Human Services – Office of Inspector General, Virginia State Police and the United States Postal Inspection Service. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
Gary Man Sentenced to 96 Months ImprisonmentFollowing Conviction for Possessing Firearm as a FelonRead the Press Release
HAMMOND- Derek Tyrone Edwards, 40 years old, of Gary, Indiana, was sentenced by U.S. District Court Judge Philip P. Simon after pleading guilty to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Edwards was sentenced to 96 months in prison followed by 2 years of supervised release when released from prison.
According to documents in the case, on February 15, 2018, law enforcement responded to 8th and Grant Street, Gary, Indiana, concerning a traffic collision and made contact with Edwards, an occupant of a vehicle. While talking to Edwards, law enforcement observed a gun magazine inside the vehicle and had Edwards exit the vehicle. Law enforcement recovered a 7.62x39mm semi-automatic pistol from the vehicle. In pleading guilty, Edwards admitted possessing the firearm and having prior felony convictions: a 2014 conviction in Indiana for Possession of Cocaine or Narcotic Drug and convictions in Wisconsin for Manufacture/Deliver THC in 2006, Possession with Intent THC in 2004, and Forgery in 2002.
This case was part of our Project Safe Neighborhoods (PSN) program. The program brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
This case was investigated by the ATF/HIDTA Task Force and Gary Police Department. This case was prosecuted by Assistant United States Attorney Nicholas J. Padilla.
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Four Men Charged in White Plains Federal Court with Gun Trafficking and Narcotics OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of two Complaints charging four defendants with firearms trafficking and narcotics distribution offenses in and around Port Chester, New York. The defendants, WALTER JONES, FRANK MAXWELL, MARKEL CALHOUN, and JAMAR CALHOUN, were presented in White Plains federal court this afternoon before United States Magistrate Judge Paul E. Davison.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants were responsible for selling guns and drugs, two potentially lethal commodities that plague too many communities. Thanks to the FBI and the Port Chester Police, the defendants are in custody and facing federal criminal charges.”
FBI Assistant Director William F. Sweeney Jr. said: “Public safety is at risk when criminals think they can operate outside the law, selling guns and drugs in our communities. The FBI's Westchester County Safe Streets Task Force is committed to working with our law enforcement partners to break the cycle of addiction and violence by removing those responsible for putting weapons and narcotics on the streets.”
As alleged in the Complaints unsealed today in White Plains federal court [1]:
In or about February and March 2017, JONES and MARKEL CALHOUN conspired to traffic in firearms, and sold four firearms in Port Chester, New York, and Riverside, Connecticut. During about the same period, JONES and MARKEL CALHOUN also possessed firearms unlawfully despite their prior felon status. From at least in or about February 2018 up to November 2018, JONES and MAXWELL conspired to distribute 28 grams or more of crack cocaine. Between March and May 2018, JAMAR CALHOUN distributed crack cocaine on at least six occasions in and around Port Chester, New York.
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JONES, 30, and MARKEL CALHOUN, 26, are charged with one count of firearms trafficking conspiracy, which carries a maximum sentence of five years in prison. MARKEL CALHOUN is charged with one count of being a felon in possession of a firearm and JONES is charged with two counts of being a felon in possession of a firearm, each of which carries a maximum sentence of 10 years in prison. JONES and MAXWELL, 36, are charged with one count of conspiracy to distribute 28 grams or more of crack cocaine, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison. JAMAR CALHOUN, 28, is charged with six counts of distribution of crack cocaine, 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 defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI Westchester County Safe Streets Task Force and the Port Chester Police Department.
These cases are being handled by the Office’s White Plains Division. Assistant United States Attorneys Christopher Brumwell and Vladislav Vainberg are in charge of the prosecution.
The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaints and the description of the Complaints set forth below constitute only allegations, and every fact described should be treated as an allegation.
Former Portland Resident Found Guilty of Sexually Exploiting Children While BabysittingRead the Press Release
PORTLAND, Ore. – After deliberating for just 20 minutes, a federal jury returned guilty verdicts against Andrew Franklin Kowalczyk, 44, formerly of Portland, for the repeated sexual abuse and exploitation of three minor female victims.
“Andrew Kowalczyk’s actions have brought unthinkable distress and terror to the lives of his victims and their families. Our two prosecutors, each with many years’ experience handling similar cases, describe Kowalczyk’s conduct as the worst they’ve seen in their careers,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I applaud the unwavering resolve of our trial team, our partner investigators and the victim survivors who persevered against a defendant who attempted every conceivable tactic to delay justice for more than 10 years.”
“I am proud of the people on the FBI's Child Exploitation Task Force, people who work tirelessly to bring justice to victimized children and help put their abusers behind bars. This defendant will never violate our most vulnerable again, and I hope this sentencing sends a strong message to those who would sexually exploit children,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
“Heinous crimes like those committed by the defendant must come to an end,” said Brad Bench, Special Agent in Charge of HSI Seattle. “I’m very proud of the agents and law enforcement partners responsible for removing this dangerous person from our streets. Let this be a warning to others who attempt to harm our children. We will work tirelessly to ensure you are brought to justice.”
According to court documents and information shared during trial, law enforcement first learned of Kowalczyk’s abuse in early 2008. On December 27, 2007, a Des Moines, Washington police officer stopped Kowalczyk for several traffic violations. Kowalcyzk did not own the vehicle he was driving, did not have a driver’s license and gave the officer a false name. After refusing the officer’s request to step out of the vehicle, Kowalczyk fled, leading police on a high-speed chase that was later terminated for public safety reasons.
Kowalczyk was later located at the Northwest Motor Inn in Puyallup, Washington. A records check run on the alias used by Kowalczyk to book his hotel room returned an outstanding arrest warrant for failing to appear in an unlawful use of a weapon case in Washington County, Oregon. Kowalczyk was arrested early the next morning when attempting to leave the hotel in a cab. Officers seized Kowalcyzk’s personal belongings including two pieces of luggage and a backpack.
In January 2008, Des Moines police detectives sought and obtained a state warrant to search computer equipment, a digital camera and digital storage devices found in Kowalczyk’s luggage. The searched returned a tremendous amount of child pornography including a number of images and videos that appeared to be homemade. Numerous videos and images depicted an unidentified male sexually abusing two very young children. Metadata embedded in many of the digital images revealed that they were created using the same camera found in Kowalczyk’s luggage.
Puyallup Police officers later published certain non-pornographic images of the victims and an adult woman found on Kowalczyk’s devices in an attempt to identify the victims. An adult woman, later identified as the victims’ mother, saw the images and contacted Puyallup Police. She confirmed she knew Kowalczyk and that he had regular access to her daughters in Portland. After reviewing some of the images seized, the victims’ mother was able to identify locations where the images were taken.
The victims’ mother told investigators she met Kowalczyk, a friend of her deceased brother, in 2003. In 2005, after the victims’ mother and her children wound up in a domestic violence shelter, Kowalcyzk offered to pay for them to stay in a motel. Between April and the beginning of June 2005, Kowalczyk arranged for the victims’ mother and her children to stay with or adjacent to him in three different Portland motels. Kowalcyzk and the victims’ mother later rented separate apartments.
The victims’ mother frequently left her children alone in Kowalczyk’s care while she searched for work or housing. The victims’ mother believed Kowalczyk treated the victims well, buying them clothing, diapers, shoes, and even a birthday cake for their second birthday and was unaware of the abuse that transpired. The cake—with the victims’ names on it—appeared in some of the non-pornographic images found on Kowalczyk’s devices.
Investigators were later able to track down the Portland motel rooms Kowalczyk rented for the family. Kowalczyk took photos of himself sexually abusing two of the minor victims at each location. He took sexually explicit photos of the third minor victim at his apartment in Southeast Portland. In March 2008, investigators conducted a federal search warrant of a storage locker Kowalczyk rented in Woodlawn, Washington. They found a sofa, a mirror and several shirts depicted in the pornographic images found on Kowalczyk’s devices.
A federal grand jury charged Kowalczyk with a single count of sexual exploitation of children on February 2, 2008. A superseding indictment with eight additional counts of sexual exploitation of children was returned on March 21, 2012. Kowalczyk sought the replacement of counsel more than a dozen times and filed extensive motions to suppress evidence, causing a decade-long delay in bringing the case to trial.
He faces a maximum sentence of 30 years in prison with a 15-year mandatory minimum on each of the nine counts. Kowalczyk will be sentenced in March 2019 before U.S. District Court Judge Michael W. Mosman.
The case was investigated by the FBI, Homeland Security Investigations (HSI), the Portland Police Bureau, and the Puyallup and Des Moines, Washington Police Departments. It was prosecuted by Scott M. Kerin and Gary Y. Sussman, Assistant U.S. Attorneys for the District of Oregon.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. 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.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at www.fbi.gov/tips.
Former Owner of Mortgage Company Ordered to Pay over $11.5 Million in Restitution and Forfeiture for His Role in Multi-Million Dollar Fraud SchemeRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that David Fili, Jr., 48, of Drexel Hill, PA, was sentenced today by United States District Judge Joel H. Slomsky to one day in jail and five years of supervised release, with the first 18 months of supervised release to be served on home confinement. Significantly, the defendant was ordered to forfeit $1,969,312.02, and is jointly and severally liable to pay $9,567,074.56 in restitution. Fili previously entered a guilty plea to ten counts of wire fraud and two counts of bank fraud.
Along with George Barnard, 47, of Newtown Square, PA, Fili owned Capital Financial Mortgage Corporation (“CFMC”), based in Delaware County, PA. Between 2005 and March 2013, Fili and Barnard issued refinance mortgage loans to customers of CFMC. Instead of using the money to pay off their customers’ outstanding first mortgages, however, they diverted $9,781,977 to themselves from bank accounts belonging to CFMC and several title companies owned by Barnard. Barnard was previously sentenced to five years in prison for his role in the scheme.
As part of his guilty plea, Fili admitted that he used much of the money he diverted to buy a vacation home and to support his gambling habit (while Barnard used the money he diverted to buy multi-million dollar beach homes in Avalon, New Jersey, several yachts, and to pay the salary of a yacht captain). At the time that the scheme fell apart in March 2013, Fili and Barnard left over two dozen CFMC customers stuck with two mortgages on their homes because CFMC had failed to pay off their customers’ existing first mortgages.
“For many years, Fili defrauded honest, hard-working individuals out of their money so that he could gamble it away and relax in his illegally-obtained vacation home, “ said U.S. Attorney McSwain. “The defendant’s vacation ends now. We are thankful that the Court ordered him to pay millions of dollars as a result of his crimes.”
The case was investigated by the Federal Bureau of Investigation and the Department of Housing and Urban Development, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Former Local Bank Teller Pleads Guilty to EmbezzlementRead the Press Release
Memphis, TN – A local woman pleaded guilty to conspiracy and embezzlement, while being employed as a teller at Tri-State Bank ("Tri-State") in Memphis. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the guilty plea today.
According to the charging instrument, from calendar years 2015 to 2016, Tanya Williams, a Tri-State bank teller, participated in a scheme to activate many dormant accounts and withdraw funds from said accounts. Williams and her bank manager used their Tri-State computer and user I.D. to activate and enter the accounts to fraudulently withdraw funds. The manager gave Williams some of the proceeds due to her willingness to participate in the fraud. During the time of the conspiracy and embezzlement, Tri-State suffered a loss of over $214,000.
U.S. Attorney D. Michael Dunavant said, "The long term financial fraud and embezzlement committed by this defendant is disturbing and far-reaching. The abuse of her position of trust and authority as a teller for her own personal gain had a significant negative impact on the employees and customers of Tri-State Bank. The U.S. Attorney’s Office places a high priority on protecting the security, deposits, and assets of financial institutions, and this conviction demonstrates that commitment."
Sentencing is set for April 5, 2018, before U.S. District Court Judge John T. Fowlkes. Williams pleaded guilty to one-count of conspiracy and another count of embezzlement. The maximum penalty for conspiracy is 5 years imprisonment and a $250,000 fine and for embezzlement 30 years imprisonment and a $1,000,000 fine. On August 30, 2018, the co-defendant, Michael B. Gaines, pled guilty to embezzlement. U.S. District Court Judge John T. Fowlkes Jr., sentenced Gaines to 12 months and one-day in federal prison on December 6, 2018.
This case was investigated by the United States Secret Service.
Assistant U.S. Attorney Damon Keith Griffin is prosecuting the case on the government’s behalf.
Former LMPD Officer Pleads Guilty to Enticing Minors, Distribution, and Possession of Child PornRead the Press Release
LOUISVILLE, Ky. – A former Louisville Metro Police Department officer has pleaded guilty before United States District Judge David J. Hale for enticement, attempted enticement, possession of child pornography, transfer of obscene materials to a minor and distribution of child pornography, announced United States Attorney Russell M. Coleman.
“This defendant dishonored the proud badge and uniform of Louisville’s Finest with his perversion and used it to prey on our young people,” stated U.S. Attorney Russell Coleman. “The Federal Bureau of Prisons awaits the outcome of his sentencing.”
Kenneth R. Betts, 34, of Shelbyville, Kentucky, was charged in an Indictment returned by a federal Grand Jury on November 7, 2018, with one count of distribution of child pornography, one count of possession of child pornography, three counts of enticement of individuals under the age of 18 years to engage in sexual activity, one count of transfer of obscene materials to an individual under the age of 16, and one count of attempted enticement of an individual under the age of 18. All of his criminal conduct occurred in Jefferson County, Kentucky.
According to the Plea Agreement, in or about and between February 2006 and February 2008, Betts communicated with an individual (John Doe 1), who had not attained the age of eighteen years. Betts communicated with John Doe 1 via Facebook and other social media. During those communications, Betts knowingly persuaded, induced, and enticed John Doe 1 to engage in sexual activity, including sharing sexually explicit images with Betts. The resending of such images is sexual activity that constitutes a criminal offense.
On or about May 14, 2014, Betts knowingly distributed child pornography. He sent two of the images referenced above to John Doe 1. Betts transmitted the images to John Doe 1 using Facebook.
Law enforcement officials executed a state search warrant on Betts’ residence on October 13, 2016. Among other things, they seized digital devices – including an external hard drive. Forensic examination of the digital devices revealed Betts’ possession of child pornography. Namely, he possessed the four images he originally requested and received from John Doe 1.
John Doe 2 (Counts 4 and 5). In or about and between May 2010 and May 2014, Betts communicated via the Internet with an individual (John Doe 2), who had not attained the age of eighteen years. The two met and became acquainted through the LMPD Explorers Program. Betts communicated with John Doe 2 via Facebook and other social media platforms. During those communications, Betts knowingly persuaded, induced, and enticed John Doe 2 to engage in sexual activity. The sexual activities included a one-time in-person sexual encounter involving oral sex between Betts and John Doe 2 and repeated requests for sexually explicit images to be shared with Betts. The oral sex and requests for photos are activities for which a person may be prosecuted for a criminal offense.
From May 2010 through May 2012, Betts used a facility and means of interstate commerce to send pictures of himself to John Doe 2. During that time period, Betts knew John Doe 2 had not attained the age of 16 years.
Jane Doe 1 (Count 6) In or about and between June 2013 and July 2013, Betts used a facility and means of interstate commerce, that is, a cellular telephone and its text messaging feature, to communicate with Jane Doe 1. At that point in time, Jane Doe 1 was 16. The two met and became acquainted through the LMPD Explorers Program. During the communications, Betts asked Jane Doe 1 to meet for sexual activity. He also asked Jane Doe 1 for sexually explicit photos, which Jane Doe 1 provided to him. The photos Jane Doe 1 provided constituted a violation of Kentucky law. Law enforcement officials with LMPD observed the images as well as the receipt of those images by Betts. However, the images were destroyed during the initial investigation.
John Doe 3 (Count 7) In or about and between September 2014 and November 2014, Betts used a facility and means of interstate commerce, that is, a cellular telephone, Facebook and SnapChat (a social media platform), to communicate with John Doe 3. At that point in time, John Doe 3 was 17. Betts and John Doe 3 had met and become acquainted through the LMPD Explorers Program. During the communications, Betts asked John Doe 3 to meet for sexual activity. He also asked John Doe 3 for sexually explicit photos. He attempted to persuade, induce, entice, or coerce John Doe 3 to engage in unlawful sexual activity. Betts sent John Doe 3 a photograph of himself wearing an LMPD uniform and in the company of a young woman during some of the communications encouraging a three-way. However, John Doe 3 refused to meet Betts for sexual activity or to send the requested sexually explicit images of himself.
Betts faces no less than 10 years in prison due to statutory mandatory minimum sentencing requirements. The maximum potential sentence is life in prison. The charges also carry a maximum potential fine of $1,750,000.00 and a term of Supervised Release of not less than five years and could be up to a term of life. There is no parole in the federal criminal system. Sentencing has been scheduled for March 18, 2019.
Assistant United States Attorney Jo E. Lawless is prosecuting the case, and it is being investigated by the Federal Bureau of Investigation (FBI) and the Louisville Metro Police Department’s Public Integrity Unit.
Former Container Company Employee Found Guilty of Tampering with Consumer Products Sentenced to 60 MonthsRead the Press Release
BOWLING GREEN, Ky. – United States District Judge Greg N. Stivers sentenced Waylon J. Horton, a former employee of a container manufacturing plant located in Hart County, Kentucky, to 60 months imprisonment followed by 2 years of supervised release, for tampering with consumer products, announced United States Attorney Russell M. Coleman.
“Mr. Horton did real harm, placing both families and a major local employer at risk,” stated U.S. Attorney Russell M. Coleman, “And for that, federal prison time is just punishment.”
In 2016, Horton, now age 44, worked on printers on production lines for Styrofoam drinking cups at the container manufacturing plant in Horse Cave, Kentucky. On two separate dates in July 2016 Horton, with reckless disregard for the risk of death or bodily injury it might cause, placed pieces of broken glass into Styrofoam drinking cups that were then shipped to fast food restaurants. Glass pieces were subsequently found in cups at three different restaurants in Ohio, Kentucky, and Indiana. After receiving complaints, the container manufacturing plant put the distribution of Styrofoam cups that were produced in its facility on hold and seven additional boxes containing Styrofoam cups with broken glass were ultimately found.
Horton pleaded guilty to tampering with consumer products on July 13, 2018.
The case was prosecuted by Assistant United States Attorneys Amanda Gregory and Marisa Ford, and was investigated by the Federal Bureau of Investigation and the Hart County Sheriff’s Office.
Former Chief Financial Officer Sentenced in Manhattan Federal Court to 18 Months in Prison for Defrauding Company of over $2 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that RANDY WANG was sentenced in Manhattan federal court to 18 months in prison for defrauding his former employer, a company based in Manhattan that manages a global airline alliance whose members consist of approximately 13 international airlines and their affiliates (the “Company”), by incurring more than $2.2 million in unauthorized charges on the Company’s credit card account. WANG pled guilty on April 17, 2018, to one count of wire fraud before U.S. District Judge John F. Keenan, who also imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Randy Wang took advantage of his positions of trust with his employer – and his access to the company’s purse strings. He charged millions of dollars’ worth of electronics on his employer’s credit card for non-businesses purposes, and attempted to cover up his criminal conduct. Today Wang has been sentenced to prison for his crime.”
According to the Information filed against Wang and statements made in related court filings and proceedings:
During the relevant time period, WANG was employed as a business manager for the Company, and for approximately the last two months of the scheme, WANG also served as the Company’s interim chief financial officer. From at least in or about January 2016 through in or about October 2017, WANG incurred more than $2.2 million of unauthorized charges on the Company’s credit card account by making hundreds of purchases at both online and brick-and-mortar retailers. WANG’s purchases, which were entirely unrelated to his official duties and were not for the benefit of the Company, included approximately 443 laptop computers, 241 mobile electronic devices, 24 tablet computers, and numerous other electronics. In order to evade detection of his criminal conduct, WANG made changes to the Company’s accounting records to disguise the nature of the credit card charges.
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In addition to his prison term, WANG, 34, of Oakland Gardens, New York, was sentenced to 3 years of supervised release, a forfeiture money judgment in the amount of $2,294,982.00, and a restitution order in the amount of $2,294,982.00.
Mr. Berman praised the work of the Department of Homeland Security, Homeland Security Investigations, and the El Dorado Task Force.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.
Former Allegheny County Resident Admits Violating Federal Firearms and Drug LawsRead the Press Release
PITTSBURGH, PA – On December 3, 2018, a former resident of Allegheny County, Pennsylvania pleaded guilty in federal court to charges of violating federal firearms and narcotics laws, United States Attorney Scott W. Brady announced today.
Maurice Tinsley, 37, formerly of McKees Rocks, Penn Hills and the Northside neighborhoods of Pittsburgh, Pa., pleaded guilty to four counts before United States District Judge Hornak.
In connection with the guilty plea, the court was advised that in July 2016, Tinsley conspired with others to possess with intent to distribute and distribute heroin. Specifically, on July 15, 2016, Tinsley possessed with intent to distribute between 40 and 60 grams of heroin. Additionally, on the same date, Tinsley, a convicted felon, possessed a firearm and ammunition in furtherance of the drug trafficking crime. Federal law prohibits a felon from possessing a firearm or ammunition.
Judge Hornak scheduled sentencing for April 4, 2019 at 1:30 pm. The law provides for a maximum of life imprisonment, a fine of up to $4,500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, the court ordered that the defendant remain incarcerated.
Assistant United States Attorney Ross E. Lenhardt of the Major Crimes Section is prosecuting this case on behalf of the government.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority.
The Drug Enforcement Administration conducted the investigation that led to the prosecution of Tinsley, with the valuable assistance of multiple state, county and local police departments including the Pennsylvania State Police, the Robinson Township Police Department, the Canonsburg Police Department and the Pittsburgh Bureau of Police.
Former 5Linx Owner Sentenced on Wire Fraud and Tax Charges for His Role in Multi-Million Dollar Marketing SchemeRead 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 Craig Jerabeck, 57, of Rochester, NY, who was convicted of conspiracy to commit wire fraud and filing a false tax return, was sentenced to serve 14 months in prison by U.S. District Judge David G. Larimer. The defendant was also ordered to pay $2,310,510 in restitution to victims and $118,628.00 to the Internal Revenue Service.
Assistant U.S. Attorney Richard A. Resnick, who is handling the prosecution of the case, stated that in 2001, the defendant, along with co-defendants Jeb Tyler and Jason Guck, started 5LINX Enterprise, Inc. (5LINX), a multi-level marketing company headquartered in Rochester. The company offered utility and telecommunications services, health insurance, nutritional supplements, and business services. 5LINX utilized independent representatives to sell products and services, and to recruit additional representatives. Jerabeck was President and Chief Executive Officer, Guck was Vice President and Secretary, and Tyler was also a Vice President. In June 2006 and July 2006, Jerabeck, Tyler and Guck sold 5LINX stock for $5,500,000 to three investment companies, Trillium Lakefront Partners III, L.P.; Trillium Lakefront Partners III, NY L.P.; and Shalam Investment Co., L.L.C. (collectively known as "the Investors").
Between May 2010 and April 2016, 5LINX sold and distributed products for a Florida vendor. As part of his plea agreement, Jarabeck admitted that he, together with Guck and Tyler, personally, and by companies they owned, received approximately $2,310,510 from a Florida vendor, without the knowledge of the 5LINX’s Investors, Board of Directors, or other stockholders. Jerabeck further admitted that he, Guck, and Tyler were each prohibited from receiving such money by their Stockholders Agreements. 5LINX, its investors, as owners between 2006 and January 2014, and as creditors thereafter, and stockholders, were entitled to and should have received the funds instead of Jerabeck, Guck, and Tyler.
In addition, Jerabeck provided false information on his personal tax returns for the years 2011 through 2013, and 2015. The defendant failed to report income he received from 5LINX, and took deductions to which he was not entitled, that is, commissions that were not paid. The false returns resulted in a tax loss to the Internal Revenue Service of approximately $118,628.
Judge Larimer also ordered the forfeiture of the defendant’s interest in real property at 90 East Lake Road, in Middlesex, NY.
Jeb Tyler and Jason Guck were previously convicted and are scheduled to be sentenced on December 12, 2018, and December 19, 2018, respectively.
Today’s sentencing is the culmination of an investigation by Special Agents of the Federal Bureau of Investigations, under the direction of Special Agent-in-Charge Gary Loeffert, and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.
Florida Company Pleads Guilty to Structuring Financial TransactionsRead the Press Release
ALBANY, NEW YORK – Latam Games, LLC of Miami, Florida, pled guilty today to structuring financial transactions to evade currency reporting requirements.
The announcement was made by United States Attorney Grant C. Jaquith; Keith Kruskall, Acting Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (DEA); and James D. Robnett, Special Agent in Charge of the New York Field Office of Internal Revenue Service (IRS)-Criminal Investigation.
A bank is required to report a customer’s deposits of more than $10,000 in currency in a single transaction. According to the plea agreement, between March 2013 and June 2013, to avoid these reports, Latam Games’s corporate officers broke cash deposits into amounts of less than $10,000 and deposited these smaller amounts in Florida, California, and New Jersey. For example, the company deposited $4,240 on March 18, 2013, $7,445 on March 19, and $9,560 on March 20. The company deposited $9,045 on April 25, 2013, and $9,000 the following day.
Latam Games admitted that it willfully violated federal law against structuring as part of a pattern of illegal activity involving more than $100,000 in a 12-month period.
Latam Games will be sentenced by Senior United States District Judge Lawrence E. Kahn on April 11, 2019, and faces a fine of up to $1 million. 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.
Latam Games has also agreed to forfeit $2,076,155.11 to the United States.
This case was investigated by the DEA and IRS-Criminal Investigation, and is being prosecuted by First Assistant U.S. Attorney Elizabeth C. Coombe and was investigated by Assistant U.S. Attorney Jeffrey Coffman. Assistant U.S. Attorney Adam Katz represented the United States in the civil forfeiture action.
Federal Judge Sentences Former Pasco County Schools Transportation Manager to Life in Federal Prison for Child Enticement and Child Pornography OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington today sentenced William Matthew Napolitano (35, New Port Richey) to life in federal prison for enticing and coercing a minor to engage in sexual activity, and for possessing child pornography. Napolitano had pleaded guilty on August 29, 2018.
According to court documents, from 2014, through most of 2017, Napolitano—at the time employed by Pasco County Schools as a Transportation Manager—lured a 15-year-old student into a predatory sexual relationship that lasted several years. In addition, Napolitano invited the student to view his collection of child pornography, invited him to watch live productions of child pornography on the internet, and invited him to engage in group sex with other adults and other minors. Napolitano also produced and distributed depictions of the sexual abuse of the student.
A review of Napolitano’s electronic devices revealed his interest in enticing and having sex with children and detailed his pattern of arranging such sexual encounters. Napolitano’s devices also contained thousands of message threads wherein he discussed raping babies and young children, intentionally contracting and spreading the Human Immunodeficiency Virus (HIV), and incest. He also actively participated in and encouraged others to sexually abuse children for his own viewing pleasure. Napolitano had amassed a large collection of child sex-abuse videos and other sexually explicit material, including infant and toddler pornography, pornography involving young children, and pornography involving feces, bestiality, and sadistic and masochistic conduct.
At the time of his arrest, Napolitano was a Manager of Transportation Services for Pasco County Schools. Before ascending to that position, he was a Transportation Route Specialist (2006–2010) and a school bus driver (2004–2006). From 2001 through most of 2004, Napolitano worked at the YMCA in New Port Richey, Florida, as a childcare worker, child supervisor, and senior program director.
“The atrocities committed by this child predator who was in a trusted position at a school district cannot be undone,” said HSI Special Agent in Charge James C. Spero. “But our greatest hope is that with this life sentence, we can bring some closure to the victims as they continue in the recovery process.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Frank Murray.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Grand Jury Indicts Michigan Resident for Fentanyl Possession with Intent to DistributeRead the Press Release
KNOXVILLE, Tenn. – On December 4, 2018, a federal grand jury in Knoxville returned a one-count indictment against D’Marko Vernell King, 30, of Detroit, Michigan. This case has not yet been set for trial.
The indictment, on file with the U.S. District Court, alleges that King possessed, with intent to distribute, four hundred (400) grams or more of a mixture or substance containing a detectable amount of fentanyl, a Schedule II controlled substance, in the Eastern District of Tennessee.
If convicted of the possession with intent to distribute charge, King faces a minimum mandatory term of at least 10 years and up to life in prison, at least five years of supervised release, a fine of up to $10,000,000, any applicable forfeiture, and a $100 special assessment.
The investigation and seizure of evidence was conducted by the Narcotics Unit of the Knox County Sheriff’s Office. Leading up to the indictment, they partnered with the Drug Enforcement Administration, Tennessee Bureau of Investigation, and U.S. Marshals Service. Assistant U.S. Attorney Brent N. Jones will represent the United States.
Today, the United States faces an unprecedented drug epidemic. The Centers for Disease Control (CDC) estimates that more than 70,000 Americans died of drug overdoses in 2017. Many of these deaths are attributed to the increased abuse of potent and dangerous synthetic opioids like fentanyl. These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Forces (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. Knox County, Tennessee, has been designated as one of those hot spots.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Farmington Man Pleads Guilty to Federal Bank Robbery ChargeRead the Press Release
ALBUQUERQUE – Justin Jr Watchman, 26, of Farmington, N.M., pled guilty today in federal court in Albuquerque, N.M., to bank robbery. Watchman entered the guilty plea without the benefit of a plea agreement.
The FBI arrested Watchman in Aug. 2018, for robbing the First Convenience Bank located inside the Walmart at 4600 East Main Street in Farmington on Aug. 17, 2018, by handing the bank teller a note demanding money. Farmington Police Department (FPD) officers located Watchman later that same day. At the time of arrest, he possessed a video game system still in the manufacturer’s box and a one-way bus ticket.
Watchman will remain in custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, Watchman faces a statutory maximum penalty of 20 years in federal prison and a $250,000 fine.
This case was investigated by the Albuquerque office of the FBI and the FPD. Assistant U.S. Attorney Howard Thomas is prosecuting the case.
El Departamento de Justicia Resuelve una Denuncia de Discriminación Relacionada con la Inmigración contra un Minorista de Galletas del Estado de UtahRead the Press Release
Washington, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Mrs. Fields’ Original Cookies Inc. (Mrs. Fields), cuya sede se encuentra en Broomfield, Colorado. Las marcas de Mrs. Fields producen, distribuyen y venden artículos especiales, entre ellos galletas, brownies y chocolates. El acuerdo resuelve una queja de que el centro de producción y distribución de Mrs. Fields en Salt Lake City, Utah vulnerara la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a individuos con autorización para trabajar que no eran ciudadanos de los EE. UU. a la hora de verificar su permiso para trabajar.
La investigación independiente del Departamento concluyó que, desde al menos el 21 de marzo del 2016 hasta el 20 de marzo del 2017, Mrs. Fields obligó a residentes permanentes legales a proporcionar documentos específicos emitidos por el Departamento de Seguridad Nacional para comprobar su autorización para trabajar mientras que no impusieron tales requisitos a ciudadanos estadounidenses. Todo individuo con autorización para trabajar, independientemente de su estatus de ciudadanía, tiene derecho a elegir, dentro de una lista de documentos válidos, el que desea presentar para demostrar su autoridad para trabajar en los Estados Unidos. La disposición antidiscriminatoria de la INA prohíbe que los empleadores sometan a sus empleados a requisitos documentales innecesarios con base en el estatus de ciudadanía o la nacionalidad de origen de los mismos.
«Los trabajadores no deben ser discriminados a causa de su estatus de ciudadanía o nacionalidad de origen durante el proceso de verificación de la elegibilidad para trabajar», declaró el Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband. «Nos complace ver que Mrs. Fields ha acordado colaborar con la División y asegurar que su personal esté capacitado en cuanto a la disposición antidiscriminatoria de la INA. Esperamos con interés la continua colaboración de la empresa para lograr esta meta en común».
Conforme el acuerdo, Mrs. Fields pagará $26,400 en sanciones civiles a los Estados Unidos y se someterá a los requisitos de supervisión y declaración del departamento. Además, se requerirá a ciertos empleados acudir a una capacitación acerca de los requisitos de la disposición antidiscriminatoria de la INA.
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) de la División es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase a un seminario en línea gratuito; envíe un correo electrónico a [email protected] o visite la página web de la IER en inglés o español.
Aquellos postulantes o empleados que creen haber sido sometidos a represalias, otros requisitos documentales por motivos de su nacionalidad de origen o su estatus migratorio o de ciudadanía; o discriminación por motivos de su nacionalidad de origen o su estatus migratorio o de ciudadanía en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Eight Men Sentenced for Their Roles in an International Child Pornography Production RingRead the Press Release
Eight men from around the country were sentenced today and yesterday for participating in an international child pornography production ring, announced United States Attorney Matthew Schneider of the Eastern District of Michigan, and Special Agent in Charge Timothy Slater of the Federal Bureau of Investigation, Detroit Division.
Sentenced were:
- Christian Maire, age 40 Binghamton, New York, was sentenced to 40 years
- Arthur Simpatico, age 47 Mississauga, Ontario, Canada, was sentenced to 38 years
- Jonathan Negroni Rodriguez, age 37 West Hollywood, California, was sentenced to 35 years
- Michal Figura, age 36 Swarthmore, Pennsylvania, was sentenced to 31 ¼ years
- Odell Ortega, age 37 Miami, Florida, was sentenced to 37 ½ years
- Brett Jonathan Sinta, age 36 Hickory, North Carolina, was sentenced to 30 ½ years
- Caleb Young, age 38 Cuyahoga Falls, Ohio, was sentenced to 30 years
- Daniel Walton, age 34 Saginaw, Texas, was sentenced to 30 ½ years
In addition to their prison sentences and terms of supervised release, all of the defendants were ordered to pay $5000 in restitution to each of the identified victims, reaching a total of over one million dollars. United States District Judge Stephen J. Murphy, III of the Eastern District of Michigan imposed the sentences.
According to court records, these eight men worked together from 2012 through 2017, with other men both inside and outside of the United States, to lure juvenile girls to an unmonitored video chat website and then sexually exploit them. The men recruited the victims from common social media platforms by pretending to be teenage boys interested in chatting with the girls in real time. Once the victims arrived in the chatrooms, the group—all pretending to be teenagers—worked together to build trust and convince the children to engage in sexually explicit conduct on web cameras. Group members then recorded that activity. The girls were unaware that the men were making recordings, or what they dubbed “captures,” of the sexual activity.
Through their scheme, the group successfully targeted hundreds of minors, some as young as ten years old. The forensic examination of their devices recovered over 450,000 child exploitive and child pornography videos of these minors, some of whom were present for the sentencing hearing and made statements to the Court. Still other victims have not been identified. The FBI has so-far identified more than two dozen victims in the United States.
“These predators committed truly horrific crimes against innocent girls and they deserve decades in prison. Shockingly, some of these defendants have young children themselves,” said United States Attorney Schneider. “Parents, please speak with your children about the dangers of chatting online so we can keep all of our children safe.”
“Those who abuse children by enticing them to produce pornographic images of themselves cause grave harm to their victims and to our community,” said FBI Special Agent in Charge Slater. “The FBI, our partners in the SEMTEC task force, and our global law enforcement network will continue to work together to identify these criminal networks and aggressively pursue charges against those who victimize and exploit innocent children.”
Assistant United States Attorneys April Russo and Kevin Mulcahy of the Eastern District of Michigan prosecuted the case. The FBI’s Detroit Field Office and Southeast Michigan Trafficking and Exploitation Crimes task force investigated the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
EDVA Team Presents at National Project Safe Neighborhoods ConferenceRead the Press Release
ALEXANDRIA, Va. – United States Attorney G. Zachary Terwilliger, along with a team of law enforcement officials from the Eastern District of Virginia, joined law enforcement leaders from around the country this week at the 2018 Project Safe Neighborhoods (PSN) Conference held in Kansas City, Missouri.
This morning, Terwilliger participated in a panel presentation on the ATF’s Crime Gun Intelligence Center (CGIC) model and the National Integrated Ballistic Information Network (NIBIN).
“CGIC and NIBIN are game changers for how we target and investigate trigger pullers,” said Terwilliger. “Director Brandon’s leadership and support of our anti-violent crime efforts and the U.S. Attorney community in general has been astounding. He and his team are truly committed to the ATF mantra of being no better partner. My sincere thanks to the brave women and men of ATF for all they are doing to interdict gun traffickers and violent criminals using both traditional law enforcement techniques as well as cutting edge science.”
Terwilliger was joined at the PSN conference by Assistant U.S. Attorneys Stephen W. Miller and Rebeca H. Bellows, Newport News Police Chief Steve R. Drew, Major Roger Russell of the Richmond Police Department, Detective Ray Betts of the Fairfax County Police Department’s Gang Unit, and Sgt. Claudio Saa of the Town of Herndon Police Department. This team of law enforcement officials presented on best practices of investigating and dismantling MS-13, setting up violent crime task forces, forming law enforcement and community partnerships, and how to effectively use the CGIC model to address violent crime. The Eastern District of Virginia continues to be a leader in PSN and currently has active programs in all four divisions: Alexandria, Newport News, Norfolk, and Richmond.
Terwilliger recently accepted an invitation from ATF Director Thomas E. Brandon to join the National Crime Gun Intelligence Board, and will immediately begin serving a three-year term.
“United States Attorney Terwilliger’s extensive experience in both prosecuting violent firearm offenders and developing Department of Justice policies to combat firearm violence provides essential expertise to the Crime Gun Intelligence Governing Board,” said ATF Deputy Director Thomas E. Brandon. “ATF is fully committed to reducing gun violence in communities across the nation and the Governing Board, which includes police chiefs, forensic lab directors and federal and state prosecutors, is vital to the success of our mission. ATF’s National Integrated Ballistic Information Network helps disrupt the shooting cycle by assisting investigators in identifying firearms involved in more than one crime, often leading to the arrest of active trigger pullers and the firearm traffickers who illegally supply them with guns. NIBIN focuses investigations on our nation’s most violent offenders, enhancing the effectiveness of law enforcement in making our communities safer. We thank United States Attorney Terwilliger for his commitment to public safety the Eastern District of Virginia and our nation, and greatly appreciate his joining the Board.”
Established in 2016, the board uses the collective experience of federal, state, and local experts in the fields of forensics, law enforcement, and criminal law to ensure ATF receives valuable input on national programs related to Crime Gun Intelligence. Members of the 23-member board serve 3-year terms and are eligible for re-appointment. It meets biannually in different cities across the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Dutchess County Felon Sentenced to 24 Months for Illegal Possession of FirearmsRead the Press Release
ALBANY, NEW YORK – Christopher Mikelinich, age 53, of Wingdale, New York, was sentenced today to 24 months in prison for illegally possessing a stolen 12 gauge, semi-automatic shotgun over an approximately two-and-a-half year period in which he resided in Columbia County, New York.
The announcement was made by United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
Senior United States District Judge Norman A. Mordue also sentenced Mikelinich to 3 years of supervised release, to begin following his term of imprisonment.
As part of his guilty plea, Mikelinich admitted that between November 2014 and February 2017, he possessed the shotgun while residing in Ancram, New York. The shotgun had previously been stolen from its owner’s vehicle in New Windsor, New York, in 2004, and was purchased by the defendant from a co-worker. Two prior felony convictions, including a prior federal conviction for being a felon in possession of firearms, prevented Mikelinich from legally possessing the firearm.
At Mikelinich’s sentencing, Judge Mordue determined that Mikelinich unlawfully possessed two additional firearms.
This case was investigated by ATF, the New York State Police, the Columbia Country District Attorney’s Office, and the Columbia County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Drug Trafficker Sentenced to 30 Years in PrisonRead the Press Release
PHOENIX – On Dec. 3, 2018, Jose Ramon Cebreros-Sanchez, a legal permanent resident from Mexico, was sentenced by U.S. District Judge Diane J. Humetewa to 360 months in prison. On July 17, 2018, Cebreros-Sanchez was found guilty at trial of conspiring to distribute methamphetamine and marijuana.
In 2016, Cebreros-Sanchez obtained methamphetamine and marijuana from Mexican cartel members and, with Taiwan Huckaby, then sold the drugs in South Phoenix. Huckaby grew up in South Phoenix and was familiar with people in the area looking for drugs. On Aug. 25, 2016, Huckaby and another person were murdered during an attempted “drug rip” at a South Phoenix residence. Homicide charges were filed by the Maricopa County Attorney’s Office.
In addition to Cebreros-Sanchez, 12 others were charged with drug and firearm-related crimes as part of this investigation: Dondre Peart, Christopher Gray, Shanique Blair, Markie Manning, Anthony Harrison, John Harris, Jr., Jeffrey Moore, Ray Box, Jr., Jerry Cockhearn, Sr., Daniel Fulton, Benjamin Littles, and Dedrick Woods. With the exception of Blair, all have pleaded guilty or been convicted at trial and sentenced. Blair remains a fugitive at this time.
“The U.S. Attorney’s Office is committed to protecting our communities from violent crimes arising from illegally-owned guns and drugs,” stated First Assistant United States Attorney Elizabeth A. Strange. “We will continue to work closely with our law enforcement partners to combat these dangers to public safety. I would like to thank ATF, DEA, and the Phoenix Police Department for their invaluable work on this case.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Drug Enforcement Administration, with assistance from the Phoenix Police Department. This case was prosecuted by Lacy Cooper, Maria Gutierrez, Keith Vercauteren, and Mark Wenker, Assistant United States Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-16-01202-PHX-DJH
RELEASE NUMBER: 2018-166_ Cebreros-Sanchez etal
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Drug Maker Actelion Agrees to Pay $360 Million to Resolve False Claims Act Liability for Paying KickbacksRead the Press Release
Pharmaceutical company Actelion Pharmaceuticals US, Inc. (Actelion), based in South San Francisco, California, has agreed to pay $360 million to resolve claims that it illegally used a foundation as a conduit to pay the copays of thousands of Medicare patients taking Actelion’s pulmonary arterial hypertension drugs, in violation of the False Claims Act, the Justice Department announced today.
When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). These copay obligations may be substantial for expensive medications. Congress included copay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs.
Under the Anti-Kickback Statute, a pharmaceutical company is prohibited from offering or paying, directly or indirectly, any remuneration—which includes money or any other thing of value— to induce Medicare patients to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
Actelion sells a number of pulmonary arterial hypertension drugs, including Tracleer, Ventavis, Veletri, and Opsumit (the “Subject Dugs”). The government alleged that Actelion used a foundation, which claims 501(c)(3) status for tax purposes, as an illegal conduit to pay the copay obligations of thousands of Medicare patients taking the Subject Drugs and to induce those patients to purchase them, because it knew that the prices Actelion set for the Subject Drugs could otherwise pose a barrier to those purchases. From 2014 to 2015, Actelion made donations to the foundation, which, in turn, used those donations to pay copays of patients prescribed the Subject Drugs. The government alleged that Actelion routinely obtained data from the foundation detailing how much the foundation had spent for patients on each Subject Drug; it then used this information to decide how much to donate to the foundation and to confirm that its contributions were sufficient to cover the copays of only patients taking the Subject Drugs. The Government further alleged that Actelion engaged in this practice even though the foundation had warned the company against receiving such information. The Government also alleged that, meanwhile, Actelion had a policy of not permitting Medicare patients to participate in its free drug program, which was open to other financially needy patients, even if those Medicare patients could not afford their copays for the Subject Drugs. Instead, to generate revenue from Medicare and induce purchases of the Subject Drugs, the government alleged that Actelion referred such Medicare patients to the foundation, which allowed the patients copays to be paid and resulted in claims to Medicare for the remaining cost.
“This settlement, like prior settlements concerning similar misconduct, makes clear that the government will hold accountable companies that pay illegal kickbacks,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Pharmaceutical companies cannot increase drug prices while engaging in conduct designed to defeat mechanisms put in place to check such prices and then expect Medicare to pay for the ballooning costs."
“Using data from CVC that it knew it should not have, Actelion effectively set up a proprietary fund to cover the co-pays of just its own drugs,” said United States Attorney Andrew E. Lelling for the District of Massachusetts. “Such conduct not only violates the anti-kickback statute, it also undermines the Medicare program’s co-pay structure, which Congress created as a safeguard against inflated drug prices. During the period covered by today’s settlement, Actelion raised the price of its main PAH drug, Tracleer, by nearly 30 times the rate of overall inflation in the United States.”
“Today’s settlement against Actelion is a victory for the public and underscores the FBI's commitment to safeguarding the financial integrity of the Medicare program,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Simply put, the goal of the FBI's Health Care Fraud program is to ensure that patients receive the appropriate treatments and therapies according to their medical needs, without corrupt or profit-driven influence of drug manufacturers.”
“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the Department of Health and Human Service’s Boston Regional Office. “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program.”
The government’s resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The investigation was conducted by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Massachusetts, in conjunction with the Department of Health and Human Services, Office of Inspector General; and the Federal Bureau of Investigation.
On June 16, 2017, after the conduct alleged in today’s settlement agreement, Johnson & Johnson acquired Actelion. The claims resolved by the settlement are allegations only; there has been no determination of liability.
Dominican National Sentenced for Illegal Rentry into the United StatesRead the Press Release
St. Thomas, USVI – Victor Gonzalez Rodriquez, 35, a Dominican Republic National, was sentenced on Wednesday December 5, 2018, in district court for illegally re-entering the United States, United States Attorney Gretchen Shappert announced.
District Court Judge Curtis V. Gomez sentenced Polanco to 21 months imprisonment, three years of supervised release and a $100 special assessment.
According to court documents, on May 9, 2018, Customs and Border Protection intercepted a vessel off of St. John and after a chase discovered Rodriquez along with four other Dominican nationals attempting to enter the United States. Rodriquez was previously removed from the United States on August 17, 2017, relating to a drug trafficking offense.
This case was investigated by Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Everard E. Potter.
Dominican National Convicted by Federal Jury of False Representation of Social Security NumberRead the Press Release
BOSTON - A Dominican national was convicted today by a federal jury in Boston of false representation of a Social Security number.
Erika Bautista Diaz, 30, was convicted by a federal jury of one count of false representation of a Social Security number. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Feb. 28, 2019. Bautista Diaz was arrested and charged in July 2018 during a federal sweep targeting individuals involved in various types of document, identity, and benefit fraud schemes.
During the execution of a search warrant at Bautista Diaz’s home on July 26, 2018, law enforcement found identity documents in Bautista Diaz’s true name, as well as a Social Security card and birth certificate in the name of a U.S. citizen from Puerto Rico. Bautista Diaz used the name and Social Security number of the U.S. citizen from Puerto Rico for employment in Massachusetts and to receive paychecks.
The charge provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000. Bautista Diaz will be subject to deportation upon completion of her sentence. 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; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigation, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki and Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit are prosecuting the case.
Doctor Convicted for Illegal Distribution of over 100,000 Oxycodone PillsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DAVID TAYLOR, a state-licensed doctor, was convicted by a jury for writing medically unnecessary prescriptions for oxycodone over a five-year period. The verdict followed a one-week jury trial before United States District Court Judge Andrew L. Carter, Jr.
U.S. Attorney Geoffrey S. Berman said: “Dr. David Taylor violated his solemn Hippocratic oath to do no harm. For cash and gifts, Taylor prescribed more than 100,000 oxycodone pills that quickly made its way to the streets of New York City, fueling the opioid epidemic. Now, Taylor stands convicted and faces 20 years in prison for his crime.”
According to allegations in the Indictment and evidence introduced at trial:
From January 2012 through at least June 2017, in the Southern District of New York and elsewhere, TAYLOR and others conspired to distribute and possess with the intent to distribute oxycodone. During this time, TAYLOR operated out of three offices in Staten Island, New York, and prescribed more than 2.6 million 30-milligram oxycodone pills. In exchange for cash and gifts, TAYLOR wrote prescriptions for over 100,000 oxycodone pills with a street value of more than $2 million for members of the conspiracy whom TAYLOR knew had no legitimate medical need for the drug. The co-conspirators then illegally sold the oxycodone they obtained from TAYLOR on the streets.
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TAYLOR, 75, was convicted of one count of conspiring to distribute and possess with intent to distribute oxycodone, which carries a maximum sentence of 20 years in prison. TAYLOR will be sentenced by Judge Carter on April 5, 2019.
Other members of the conspiracy, including VITO GALLICCHIO, 51, NICHOLAS AVICOLLI, 54, DANIEL GARCIA, 57, LAWRENCE MONTALBANO, 52, and DON MICHAEL CARIM, 34, previously pleaded guilty to the same offense.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the DEA’s Tactical Diversion Squad (Group TDS-NY), which comprises agents and officers from the DEA, the New York Police Department, the New York State Police, New York State Department of Financial Services, the New York National Guard, and New York City Department of Investigation. He also acknowledged the assistance of Health and Human Services-OIG and the National Insurance Crime Bureau.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Kiersten A. Fletcher, Justin V. Rodriguez, and Nicolas Roos are in charge of the prosecution.
District Man Pleads Guilty to Federal Firearms and Narcotics ChargesRead the Press Release
WASHINGTON – Deangelo Jenkins, 33, of Washington, D.C., has pled guilty to federal firearms and narcotics offenses stemming from an investigation in which law enforcement recovered two loaded handguns and cocaine base, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Jenkins pled guilty on Dec. 4, 2018, in the U.S. District Court for the District of Columbia to two counts of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year and one count of possession of cocaine basis. Under federal sentencing guidelines, Jenkins faces a likely range of 70 to 87 months in prison. The Honorable Timothy J. Kelly scheduled sentencing for Feb. 21, 2019. The Court ordered that Jenkins be held without bond pending her sentencing.
According to the government=s evidence, on Oct. 24, 2017, MPD officers observed Jenkins driving a white Infiniti that had been identified in connection with a homicide investigation. Officers made contact with Jenkins and advised him that the vehicle was being seized in reference to the pending homicide investigation. Jenkins was then asked to exit the vehicle. Jenkins, who was talking on a cellular phone at the time, did not comply. He acted nervous and failed to exit the vehicle despite being ordered to do so by officers on several occasions. An officer then reached through the driver’s side window and attempted to unlock the driver’s side door, but Jenkins re-locked the door before the officer could open it. This happened a number of times before officers could successfully get Jenkins out of the vehicle. Once he was out of the vehicle, MPD officers were able to impound it for investigative purposes.
Jenkins was not arrested at that time. The following day on Oct. 25, 2017, pursuant to a search warrant, MPD officers searched the vehicle. During the search, officers recovered a .45-caliber handgun from the center console of the vehicle. The firearm had one round of ammunition in the chamber and 10 rounds in the magazine.
Following the discovery of the gun and ammunition, an arrest warrant was issued. On Nov. 9, 2017, members of the U.S. Marshals Service observed Jenkins entering an apartment building in the 2900 block of 14th Street NW. Jenkins was arrested inside an apartment. During a search of Jenkins, officers recovered a .357-caliber revolver from his waistband area. The firearm was loaded with six rounds of ammunition in the chamber.
Jenkins was arrested and transported to a hospital after complaints of feeling ill. While at the hospital, an additional search of the defendant was conducted, and officers found a large white rock-like substance located in the right front change pocket of the defendant’s pants. The white substance was tested and determined to be cocaine base.
At the time of his arrest in this case, Jenkins was barred from possessing a firearm due to previous convictions in the District of Columbia and Prince George’s County, Md. for armed robbery, firearms and other offenses.
In announcing the plea, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They expressed appreciation for the assistance provided by the U.S. Marshals Service. They also commended the efforts of those who worked in the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Jeannette Litz and Teesha Tobias, and Assistant U.S. Attorney Emory V. Cole, who prosecuted the case.
Dayton Man Convicted of Trying to Join ISISRead the Press Release
DAYTON – A federal judge has convicted a Jordanian national residing in Dayton of attempting and conspiring to join ISIS, a designated foreign terrorist organization.
U.S. District Judge Walter H. Rice returned a guilty verdict today following a bench trial that started November 13, convicting Laith Waleed Alebbini, 28, of Dayton, Ohio, of one count of attempting to provide material support and resources to ISIS, and one count of conspiring to do the same. Alebbini attempted and conspired to provide material support and resources to ISIS in the form of personnel, namely himself.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Todd Wickerham of the FBI’s Cincinnati Division and other members of the FBI’s Joint Terrorism Task Force (JTTF) announced the guilty verdict.
Alebbini was arrested by the FBI on April 26, 2017, at the Cincinnati/Kentucky International Airport, as he approached the TSA security checkpoint. Alebbini waived his right to trial by jury, and the case proceeded to trial before the Court. The evidence at trial showed that at the time of his arrest, Alebbini had a ticket and boarding passes in hand for a flight to Amman, Jordan, with a connection in Istanbul, Turkey. The evidence also showed that Alebbini intended to step off the plane once in Istanbul, forego the flight to Amman, and instead make his way from Turkey into Syria in order to join ISIS there.
According to court documents and testimony, the investigation began in January 2017, when Alebbini trespassed onto the Turkish Embassy in Washington, D.C., in an effort to speak to the Turkish Ambassador about the Syrian conflict. Security personnel apprehended and escorted Alebbini off the embassy, but no charges were brought. Two days later, Alebbini left the United States for Turkey, in a proclaimed effort to join up with forces fighting in Syria. Turkish authorities denied Alebbini entrance because he was traveling on an expired passport, and Alebbini returned to the United States. At this time, he lived in Gordonsville, Va.
Alebbini moved to Dayton, Ohio on March 1, 2017. Two weeks later, Alebbini entered a Dayton-area mosque, grabbed anti-ISIS brochures from a table, threw them in the trash and challenged mosque leaders for distributing anti-ISIS brochures.
Alebbini told relatives and others that he regularly watched ISIS-related videos on YouTube, and that Facebook had disabled his account due to his posting of ISIS material.
On April 20, 2017, during a six-hour conversation with a friend who tried to talk Alebbini out of traveling and joining ISIS, Alebbini told his friend: “I did not say the Islamic State does not cut off heads. The Islamic State is the beheader and throat cutter…I agree with you on that…, but they still treat captives well. The captive, before he is beheaded, is treated well, but when it’s time to behead him, he will be beheaded….But the Islamic State is fighting a survival war. They ask people to migrate to the State. When migrants get there…they will assign them accordingly to a…district where they will recruit them as inghimasi. I, cousin, want to go to be an inghimasi soldier.” As explained at trial, an “inghimasi soldier” is a particularly lethal type of suicide bomber – one who seeks to cause as much death and destruction as possible prior to detonation. Alebbini told a relative days later: “I am now ready to migrate.”
Alebbini also told his friend during the six-hour call that he had heard and was following the “calling” of ISIS’ self-proclaimed leader, Abu Bakr al-Baghdadi. Alebbini also stated to his friend: “I will not enter the United States of America except, God willing, as a conqueror.” When Alebbini’s friend asked how Alebbini would know “who the group you’re firing at belongs to or is affiliated with,” Alebbini responded: “This group…belongs to the Crusaders, belongs to America.” Alebbini expressed to others similar sentiments about America and Americans.
After learning of Alebbini’s arrest, Alebbini’s friend visited his nearest FBI field office to report his conversation with Alebbini and Alebbini’s intentions.
In a WhatsApp conversation on April 26, 2017, about an hour before Alebbini arrived at the Cincinnati-Northern Kentucky airport, another relative pleaded with Alebbini not to travel. Alebbini responded in three separate back-to-back messages: “Do you think I am a criminal” “I am a terrorist” “I am mujahid”.
After his arrest at the CVG airport, Alebbini told agents that ISIS is an “unbreakable” “justice state, a state of justice,” and that he and his “brethren” in the Islamic State wanted an “Islamic State of Arabia, you know, just like the United States of America…What if the founding fathers were Muslims? What about that?”
Further, Alebbini told agents the “time is already here” for “picking up the gun” and “fighting with” ISIS, stating that “his people” are being attacked by a “Crusader Coalition” of “66 nations.” Alebbini told agents and others that he would rather spend years in jail than remain in America.
Attempting to provide material support to a foreign terrorist organization, and conspiracy to do so, are each federal crimes punishable by up to 20 years in prison. Alebbini arrived in the United States in 2011 and has been a “green card” holder (lawful permanent resident) ever since. After serving his sentence, Alebbini will face deportation.
“Today the district court found Laith Alebbini guilty of attempting to join ISIS,” U.S. Attorney Glassman said, “The verdict followed a trial in open court, where the defendant had the assistance of able lawyers, and the United States proved the charges with evidence beyond a reasonable doubt. This is the American criminal justice system as envisioned by the Founding Fathers – and it is the exact opposite of the murderous regime Alebbini sought to support.”
“Terrorism continues to be a significant threat to our country,” stated Special Agent in Charge Wickerham. “The FBI and our partners on the Joint Terrorism Task Force are committed to preventing individuals from supporting terrorism.”
The JTTF includes officers and agents from the FBI, U.S. Secret Service, U.S. Immigrations and Customs Enforcement, Greene County Sheriff’s Office, Oakwood Police Department, Dayton Police Department, Cincinnati Police Department, Colerain Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, U.S. Internal Revenue Service, U.S. Postal Inspection Service, West Chester Police Department, and Cincinnati State Police Department.
Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the JTTF, as well as First Assistant Vipal J. Patel, Assistant U.S. Attorney Dominick S. Gerace, and Trial Attorney Justin Sher of the Counterterrorism Section of the National Security Division of the U.S. Department of Justice, all of whom prosecuted the case through trial.
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Dallas Project Safe Neighborhood Taskforce Honored by Justice DepartmentRead the Press Release
Dallas’ Project Safe Neighborhoods Taskforce earned one of just two “Outstanding Overall Partnership” awards from the U.S. Department of Justice, U.S. Attorney for the Northern District of Texas Erin Nealy Cox announced today.
Dubbed “Operation Badge #10934” in honor of fallen Dallas Police Officer Rogelio Santander, Dallas PSN was launched in February 2018 to tackle increasing violent crime. Led by U.S. Attorney Nealy Cox and Dallas Police Chief Renee Hall, the PSN Taskforce – a coalition of federal and local law enforcement that includes FBI, ATF, DEA, and the U.S. Marshals Service – has already made more than 120 arrests inside the PSN “hotspot,” a historically crime-riddled community nestled at the intersection of Route 75 and LBJ.
Over the past eight months, the hotspot has seen a 19.9% reduction in violent crime.
“Our PSN Taskforce in Dallas is Texas-sized,” Acting Attorney General Matt Whitaker said at an awards ceremony in Kansas City, MO Thursday. “It brings together 60 people, including law enforcement officers, local government officials, local school personnel, and 15 community organizations.”
“I’m incredibly proud of the way we’ve been able to marshal resources from federal and local law enforcement to foster lasting change in a neighborhood that sorely needs our help,” said Nealy Cox. “None of this would have been possible without our law enforcement team, which includes DPD Chief Hall, FBI SAC Eric Jackson, DEA SAC Clyde Shelley, ATF SAC Jeffrey Boshek, U.S. Marshal Rick Taylor, and many others.”
“I am extremely proud of the partnership between the Dallas Police Department and U.S. Attorney’s Office with Project Safe Neighborhood,” Chief Hall said in a statement. “The work of the Dallas Project Safe Neighborhood team is making a difference and being recognized by the Department of Justice. This enforcement effort is beneficial and allows us to focus on concentrated crime areas, while engaging with the community.”
Dallas’ PSN initiative relies on a three-pronged approach combining traditional enforcement, community outreach, and recidivism reduction. Federal prosecutors have charged dozens of individuals with felony crimes, from carjacking to straw purchasing. They’ve also held nearly 50 community events to explain how residents can help keep communities safe, and hosted nearly 2,500 ex-convicts and parolees at monthly “reentry nights” outlining ramifications of re-offending and presenting a buffet of resources, from job placement programs to counseling opportunities.
The Dallas PSN Taskforce is joined in the overall partnership category by Jackson, Mississippi’s PSN team. Ten other districts were honored for individual and organizational contributions to Project Safe Neighborhoods. The Northern District of Texas’ PSN operation is managed by Coordinator P.J. Meitl. More information on Dallas PSN here.
Court of Appeals Affirms Conviction and Sentence of Rochester Man Who Was Planning Deadly Attack to Pledge His Support to ISILRead 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 the United States Court of Appeals for the Second Circuit has affirmed the conviction and sentence of Emanuel L. Lutchman.
On April 11, 2016, the defendant pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL). On January 26, 2017, Judge Geraci sentenced Lutchman to 20 years in prison and 50 years supervised released.
According to court documents, Lutchman posted on social media expressions of support for ISIL, including images, videos and documents relating to ISIL and violent jihad. Lutchman also downloaded and watched terrorism-related videos, including videos relating to ISIL and the now-deceased terrorist Anwar al-Awlaki. The defendant also maintained a digital collection of documents relating to terrorism and terrorist groups.
On December 25, 2015, Lutchman initiated online contact with Abu Issa Al-Amriki, an ISIL member and external attack planner in Syria, who told the defendant to plan an attack on New Year’s Eve and kill a number of kuffar (non-believers and infidels), in order to pledge his allegiance to ISIL. Al-Amriki was subsequently killed in an airstrike in Syra in 2016.
Lutchman also communicated with other individuals who, unbeknownst to the defendant, were cooperating with the FBI. In these communications, Lutchman discussed details of the New Year’s Eve attack, including potential targets. One identified target was the Merchant’s Grill, a bar/restaurant in Rochester. On December 29, 2015, Lutchman went to a store in Rochester to purchase weapons and supplies for the attack, including two black ski masks, two knives, a machete, zip-ties, duct tape, ammonia and latex gloves. The defendant told that individual that “the operation is a go,” and noted that many victims would have to be killed. On December 30, 2015, Lutchman made a video pledging allegiance to ISIL. In reference to the planned New Year’s Eve attack, the defendant stated, “the blood that you spill of the Muslim overseas we gonna spill the blood of the kuffar,” and asked Allah to “make this a victory.” Immediately thereafter, law enforcement agents arrested Lutchman.
In their decision, the Circuit Judges noted: “Lutchman’s behavior at the end of the sentencing proceeding validated the district court’s conclusion. Lutchman had maintained a pretense of remorse that was dropped after the sentence was announced. Lutchman then laughed, reaffirmed his allegiance to ISIL’s leader, and stated that more individuals like him would “rise up.” We see no error in the imposition of the statutory maximum sentence.”
The investigation was conducted by the FBI’s Rochester Joint Terrorism Task Force. On appeal, the government was represented by Assistant U.S. Attorneys Tiffany H. Lee and Brett A. Harvey.
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Convicted rapist among those indicted for firearms crimesRead the Press Release
A convicted rapist from Cleveland was indicted in federal court for having a firearm.
Kevin L. Lott, 52, was indicted on one count of being a felon in possession of a firearm.
Lott possessed a L.W. Seecamp 380 pistol on Oct. 2, despite previous convictions for aggravated burglary and rape, sexual battery and attempted robbery, according to the indictment.
In an unrelated case, Delonte Hudson, 32, of Cleveland, was indicted for being a felon in possession of a firearm. Hudson possessed a Glock 40-caliber handgun and 12 rounds of ammunition on Oct. 26 despite a previous conviction for attmpted drug trafficking, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The Lott case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Cleveland Division of Police. It is being prosecuted by Assistant U.S. Attorney James Lewis.
The Hudson case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cleveland Division of Police and Cleveland Heights Police Department. It is being prosecuted by Assistant U.S. Attorney Brian Deckert.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Convicted Felon Sentenced to Prison for Heroin and Gun CrimesRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 15 years in prison for trafficking heroin while armed.
According to court documents, Vernon Lewis Petway, 39, was caught in possession of roughly 97 grams of heroin and a firearm after transporting the heroin by bus from New York City to Norfolk. At the time of the arrest Petway was on supervision for previous federal drug and gun convictions, and as a convicted felon is prohibited from carrying firearms.
The case is part of Operation Sand Dragon, a joint operation run by the Norfolk Police Department with assistance from the DEA, ATF, Homeland Security Investigations, and the Chesapeake Police Department. After an eight-month-long investigation, law enforcement arrested 44 suspects for their roles in distributing drugs. Twelve of the suspects were involved in gang activity, which was a major focus of the investigation. During the investigation, law enforcement recovered roughly 11 ounces of heroin, 3 pounds of cocaine, 3 pounds of marijuana, 24 ecstasy pills, and 9 grams of methamphetamine. The total street value of the drugs was over $190,000. Law enforcement also recovered 12 firearms and over $85,000 in cash.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney William B. Jackson prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department reinvigorated PSN in 2017 as part of a 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-34.
Connecticut Crime Prevention Organization Receives Justice Department Project Safe Neighborhoods AwardRead the Press Release
Acting Attorney General Matthew Whitaker and U.S. Attorney John H. Durham announced that a Connecticut crime prevention organization is the recipient of one of 16 awards presented today during the 2018 Project Safe Neighborhoods (PSN) National Conference in Kansas City, Missouri. The awards recognize individuals and groups for their dedication and contribution to the success of PSN, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
“Project Safe Neighborhoods is making our prosecutions more targeted and more effective – and that makes the American people safer,” said Acting Attorney General Whitaker. “Today the Department recognizes 16 examples of those who go above and beyond the call of duty in using PSN to reduce violent crime. We had a lot of impressive nominees, but even with tough competition, these 16 stood out. I want to thank each one of them for their service and congratulate them on a job well done.”
The Justice Education Center, Inc., based in West Hartford, received a PSN award for Innovative Prevention/Reentry Strategy. This award is given to those who have made an impact to reduce offenses, prevent crime by mitigating risk, and prevent recidivism on the part of those reintegrating into society.
Specifically noted during today’s ceremony, the Justice Education Center and the Connecticut U.S. Attorney’s Office developed the Career Pathways Technology Collaborative, a program designed to provide skilled vocational, credentialed training to at-risk youth, 16 to 24 years of age. Career Pathways enables young people to acquire credits toward their high school diploma or GED, obtain entry or competitive level employment, or seek further technology certifications through union or community college programs. This collaborative is deeply community-based, as the Justice Education Center has developed partnerships with local boards of education, community colleges, workforce development boards, and unions. Of the 133 youths enrolled in the program since 2015, more than 70 percent received credit towards graduation. The success of the partnership between the Justice Education Center and the U.S. Attorney’s Office for the District of Connecticut has fostered the development of new investments in education, risk reduction and career readiness – with PSN funds serving as critical leverage for additional state, municipal and foundation support.
“The Justice Education Center is dedicated to finding creative ways to prevent crime, improve public safety and strengthen our communities in Connecticut,” said U.S. Attorney Durham.” “For more than a decade, the Justice Education Center and U.S. Attorney’s Office have collaborated closely on initiatives to reduce violent crime and curb juvenile crime. I congratulate the Justice Education Center – under the dedicated, tireless and enthusiastic leadership of its executive director Sherry Haller – for this well-deserved national recognition.”
Concord Man Pleads Guilty to Unlawfully Possessing Firearms and AmmunitionRead the Press Release
CONCORD - Nathaniel Carr, 24, of Concord, pleaded guilty to unlawful possession of firearms and ammunition by a prohibited person, announced United States Attorney Scott W. Murray.
According to court documents and statements made in court, on August 1, 2018, a police officer saw a Chevrolet Trailblazer with expired temporary license plates, driven by Carr, exit a convenience store’s parking lot on Loudon Road. A police officer later located the vehicle, with Carr sitting in the driver’s seat, in another parking lot on Loudon Road. At that location, the police officer parked behind the Trailblazer. When Carr opened the driver’s door, the police officer saw a .22 caliber revolver in the pocket of the driver’s door and a box of .22 caliber ammunition in front of the front passenger seat. As a previously-convicted felon, Carr is prohibited by federal law from possessing firearms or ammunition.
While later executing a warrant to search Carr’s residence on August 24, 2018, the Concord Police Department found 20 rounds of .380 caliber ammunition and 31 rounds of .38 caliber ammunition in a safe; a .380 caliber pistol and 30 rounds .380 caliber ammunition in a backpack; and a .12 gauge shotgun shell in Carr’s bedroom.
Carr will be sentenced on March 13, 2019.
“Keeping guns out of the hands of criminals is necessary in order to keep our community safe,” said U.S. Attorney Murray. “In order to reduce violent crime, we will work closely with our law enforcement partners to identify, prosecute, and incarcerate criminals who possess firearms.”
This matter was investigated by the Concord Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Anna Krasinski is prosecuting the case.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Cleveland man indicted for lying about domestic violence conviction three times this year while trying to purchase a firearmRead the Press Release
A Cleveland man was indicted for lying about his conviction for domestic violence three times this year while trying to purchase a firearm.
Joseph Williams, 25, was indicted on three counts of making a false statement during the purchase of a firearm.
Williams was convicted in 2011 of one misdemeanor count of domestic violence in Cleveland Heights Municipal Court.
Williams falsely stated he had not been convicted of domestic violence when he attempted to purchase firearms from Fin Feather Fur in Middleburgh Heights on Aug. 31, Atwell’s Police & Fire Equipment in Painesville on Sept. 5 and Atlantic Gun & Tackle in Bedford Heights on Oct. 27, according to the indictment, according to the indictment.
He was stopped from buying the firearm each time.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Danielle K. Angeli.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Chicago Woman Sentenced to Nearly 4 Years for Multi-Million Dollar Fraud Involving Bogus Event Ticket BusinessRead the Press Release
CHICAGO — A Chicago woman has been sentenced to nearly four years in federal prison for operating a multi-million dollar fraud scheme that duped investors into believing she could earn profits on the secondary market for concert and sports tickets.
TRACY MONTI fraudulently obtained more than $5 million from investors by misrepresenting that she could purchase tickets for sporting events and concerts from primary market sources at face value or at a discount through purported connections in the event business and then re-sell the tickets for a profit on the secondary market. In reality, Monti used the victims’ funds to purchase various items for herself, including a house in Chicago, a Dodge Challenger, tattoos, vacations, and shopping sprees at Victoria’s Secret and Neiman Marcus. Monti also made Ponzi-type payments to early investors.
Monti, 44, pleaded guilty earlier this year to one count of wire fraud. U.S. District Judge Manish S. Shah on Tuesday sentenced Monti to 46 months in prison and ordered her to pay $4,997,958 in restitution to victims.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Chicago office of the Internal Revenue Service Criminal Investigation Division.
The fraud scheme began in 2010 and continued until 2015. Monti misrepresented to investors that she had business relationships with multiple primary sources, such as event promoters and venues, through which she could purchase tickets at face value before re-selling them for a profit. Those relationships did not actually exist. Monti victimized more than ten investors, one of whom took money out of his pension to invest in Monti’s scam.
“This case involves a brazen and merciless scheme to defraud,” Assistant U.S. Attorney Sheri H. Mecklenburg argued in the government’s sentencing memorandum. “Defendant cast a wide net, seeking victims wherever and whenever she could.”
California man indicted for transporting five illegal aliensRead the Press Release
A California man was indicted for transporting five people in the country illegally.
Yusnier Perez-Canet, 20, was indicted on five counts of transportation of aliens not lawfully in the United States.
Perez-Canet on Sept. 26 was transporting five people who were in the country illegally, according to the indictment.
If convicted, the defendant's sentence will be determined by the Court after reviewing factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the U.S. Border Patrol. The case is being handled by Assistant U.S. Attorneys Ashley A. Futrell and Thomas P. Weldon.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Man Indicted for Trafficking Large Amounts of Fentanyl and Cocaine in Northampton CountyRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Miguel Gonzalez Segovia 33, of Mira Loma, California was charged today by indictment for trafficking illegal drugs in Northampton County, Pennsylvania on November 13, 2018. Gonzalez Segovia is specifically charged with one count of possessing with the intent to distribute 5 kilograms or more of cocaine and 400 grams or more of fentanyl, the deadly synthetic opioid.
“We at the Department of Justice seek to reduce the supply of illegal drugs in the United States by aggressively investigating and prosecuting national and international drug trafficking organizations,” said U.S. Attorney McSwain. “This will continue to be a high priority for our Office.”
“Segovia is accused of possessing with the intent to distribute a substantial amount of cocaine and fentanyl, both of which are dangerous drugs, the latter of which is a deadly synthetic opioid that was identified in over 67% of the 5,456 overdose deaths in Pennsylvania in 2017,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The primary mission of our office is to target significant drug traffickers that are operating in our area and the nation at large.”
If convicted of all counts, Gonzalez Segovia faces a maximum sentence of life imprisonment, with a 10-year mandatory minimum term of imprisonment, a mandatory minimum of 5-years supervised release up to a lifetime of supervised release, a $10,000,000 fine, and a $100 special assessment.
The case was investigated by the Drug Enforcement Administration and the Pennsylvania State Police. The case is being prosecuted by Assistant United States Attorney Kelly A. Lewis Fallenstein.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
CEO of Miami Investment Management Firm Charged in Manhattan Federal Court with FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of a criminal complaint charging FABIO BRETAS DE FREITAS with commodities fraud, wire fraud, bank fraud, and identity theft in connection with BRETAS’s operation of two related investment companies, Phynance Capital Management LLC (“Phy Capital”) and Absolute Experience LLC (“Absolute”). BRETAS is alleged to have misrepresented to investors the trading activity and use of funds invested in Phy Capital and Absolute, and, after acquiring investor funds, misappropriated a large portion of those funds for his personal benefit. Additionally, after the initiation of an audit of BRETAS’s companies by the Commodity Futures Trading Commission (“CFTC”) and the National Futures Association (“NFA”), BRETAS allegedly attempted to deceive those regulators by impersonating a victim-investor using a fraudulent email account appearing to belong to that victim, but in fact controlled by BRETAS. BRETAS was arrested this morning in Miami and will be presented before a U.S. Magistrate Judge in the Southern District of Florida later today.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Fabio Bretas de Freitas used sham investment companies to steal both the money and the identities of his would-be investors. Thanks to the dedication of the FBI, and with the support and assistance of the CFTC and NFA, Bretas’s alleged scheme has collapsed around him and he will now be held to account.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “The defendant obtained more than $5.5 million from people who invested their money in good faith. But as alleged, instead of investing those funds as he had promised, the defendant used it to cover his own personal expenses, even going so far as to impersonate one of his own victims to deceive investigators. Bretas’s arrest should serve as a stark reminder that those who seek to manipulate our financial systems for their personal gain will be identified and disrupted.”
According to the Complaint filed today in Manhattan federal court[1]:
BRETAS started Phy Capital and Absolute in 2016, and ultimately obtained more than $5.5 million from various investors (the “Victims”). While BRETAS conducted a minimal level of trading, his predominant use of his companies was the theft of investor money, using it to cover his personal expenses, and transferring investor funds abroad. When his regulators, the CFTC and NFA, initiated an audit of BRETAS in 2017, BRETAS lied about his affiliation with Absolute, falsely claimed that his victims’ funds reflected mere loans to his company, lied about the use of those funds and the solicitation of investments, and ultimately created a fraudulent email account for the purpose of impersonating one victim in communications with the NFA.
BRETAS, 53, of Miami, Florida, was arrested this morning in Miami. BRETAS is charged with wire fraud, which carries a maximum sentence of 20 years in prison; bank fraud, which carries a maximum sentence of 30 years in prison; commodities fraud, which carries a maximum sentence of 25 years in prison; and aggravated identity theft, which carries a mandatory sentence of two 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.
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This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Andrew C. Adams and Benet Kearney are in charge of the prosecution.
The charges contained in the Complaint 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 Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
CEO Charged with Wire Fraud Arrested at SFORead the Press Release
SAN FRANCISCO – Brandon Frere was charged with wire fraud on December 5, 2018, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation, Special Agent in Charge John F. Bennett.
According to the criminal complaint, Frere, 41, of Sonoma County, is alleged to have used various companies that he controlled to operate a fraudulent student loan debt relief scheme to unjustly enrich himself and his family members from 2014 to November 2018. An affidavit filed by an FBI special agent in connection with a criminal complaint alleges that Frere targeted recipients of federal student loans who were often struggling to make payments and devised a scheme to steal millions of dollars from these victims. Frere is the President, Chief Executive Officer, Secretary, and primary shareholder of American Financial Benefits Center, Ameritech Financial, and Financial Education Benefits Center (collectively “the Companies”). The Companies allegedly collected advance fees of approximately $600 to $800 per victim, purportedly to prepare and submit documents to enroll consumers in the Public Service Loan Forgiveness program, income-driven repayment program, and other alternative repayment plans with the U.S. Department of Education. Frere and the Companies also allegedly collected enrollment fees ranging from $100 to $1,200, as well as monthly fees ranging from $49 to $99 for a so-called financial education membership program.
The affidavit describes a complex, multi-faceted scheme to defraud. As part of the alleged scheme, Frere’s Companies made misrepresentations to the victims concerning their ability to obtain lower fixed payments and loan forgiveness. Employees of defendant’s companies were trained to encourage victims to misrepresent their family size so that they could be enrolled in programs for which they were not eligible. Frere’s companies are also alleged to have misrepresented the nature and purpose of the fees that consumers would be paying. Victims often were charged recurring monthly fees for the “financial education” membership program. These fees were encompassed within the program costs quoted to consumers during sales calls, but agents represented that the fee was tied to consumers’ enrollment in an alternative repayment plan and that some or all of the monthly payments under “the program” would applied to consumers’ outstanding loan balance. This was false because the monthly fees were not being applied to the victims’ loan balances. Monthly payments, however, would continue to be pulled out of the victim’s bank account for the term of consumer’s student loans, falsely making it appear that the fees were related to their loan repayment.
Frere and the Companies are believed to have collected over $28 million from 2014 to early 2018. The affidavit also alleges that bank records show the dissipation of over $128,000 to airlines, hotels, resorts, casinos, cruise lines, and similar companies; over $202,000 to automotive and motorsports companies; and over $253,000 to companies that provide building, landscaping, and related supplies and services. Frere allegedly directed payments of over $864,000 to members of his family and family-owned businesses. Frere himself allegedly transferred millions of dollars to his personal accounts, including millions of dollars transferred overseas to accounts that he controlled in Andorra and Luxembourg. As recently as last Thursday, Frere is alleged to have looted the business accounts of hundreds of thousands of dollars.
Frere was arrested last night, December 5, 2018, at SFO as he attempted to board a flight to Cancun, Mexico. He made his initial appearance in federal court in San Francisco this morning. Frere is currently being held in the custody of the United States Marshals Service. His next scheduled appearance is at 9:30 AM on December 10, 2018, for a detention hearing before the Honorable Sallie Kim, U.S. Magistrate Judge.
The criminal investigation began after the Federal Trade Commission filed a civil complaint in February 2018 against Frere and the Companies in federal court in Oakland. (Federal Trade Commission v. American Financial Benefits, et al., Case No. CV 18-00806-SBA).
A criminal complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of wire fraud under 18 U.S.C. § 1343, Frere faces a maximum sentence of 20 years in prison, and a fine of $250,000, or not more than the greater of twice the gross gain or twice the gross loss from the fraud. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Scott Joiner is prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the Internal Revenue Service and Federal Bureau of Investigation.
Brooklyn Man Sentenced to 87 Months on Firearm and Drug ConvictionsRead the Press Release
ALBANY, NEW YORK –Emmanuel Philippe, age 23, a citizen of Haiti residing in Brooklyn, New York, was sentenced today to 87 months in prison for possessing a firearm in furtherance of a drug trafficking crime, possessing a firearm and ammunition as a felon, and possessing and intending to distribute crack cocaine.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Saratoga Springs Police Chief Gregory Veitch.
Philippe is a lawful permanent resident of the United States and citizen of Haiti. After he completes his term of imprisonment, he will be placed into immigration proceedings.
Philippe was convicted following a 4-day trial in July and August 2018, presided over by United States District Judge Mae A. D’Agostino.
Evidence presented during the trial established that on March 17, 2017, at about 3 a.m., Philippe was the subject of a routine traffic stop, for speeding, on West Avenue near the YMCA in Saratoga Springs, New York. Philippe gave Officers a fake name and a fake Massachusetts driver’s license, and said he was on his way to a hotel in Schenectady, New York.
A Saratoga Springs Police Officer detected the smell of marijuana, and Philippe admitted to having marijuana in his car. Officers ordered Philippe and his passenger out of the car so they could search it. During the search, Philippe and his passenger stood on the side of the road in the presence of Officers.
Philippe became visibly nervous as an Officer searched the trunk, and attempted on several occasions to approach the trunk, falsely claiming that his jacket was inside. Officers asked him to back away from the trunk.
While searching the trunk, an Officer found a plastic bag containing a loaded rifle magazine and rounds of .223 caliber ammunition. As the Officer called her Sergeant over to see what she had found, Philippe took off running, through a snow-covered field, in the direction of the YMCA. Officers quickly and safely arrested Philippe in the YMCA parking lot, and found him in possession of 35 baggies containing crack cocaine.
In the trunk, Officers located a Windham Weaponry semi-automatic rifle, loaded with a 30-round magazine and with its safety turned off; another loaded, 30-round magazine; a total of 165 rounds of Federal .223 caliber ammunition; and 22 rounds of Federal 9 millimeter ammunition. In Philippe’s possession and in the car, Officers also located $1,610 in cash, 2 digital scales, and drug packaging materials.
At the time of the crimes, Philippe had a prior felony conviction for attempted grand larceny, from Saratoga County Court.
This case was investigated by the ATF and Saratoga Springs Police Department, with the assistance of the Saratoga County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Brazilian Man Sentenced for Illegal Alien SmugglingRead the Press Release
ALBANY, NEW YORK – Rosalvo Caetano, age 46, and a citizen of Brazil, was sentenced today to time served (208 days in jail) for transporting two illegal aliens within the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
On May 12, 2018, Caetano drove from Worcester, Massachusetts, to Fort Covington, New York, where he picked up two illegal aliens, both Brazilian citizens, who had secretly crossed the border from Canada. Border Patrol Agents arrested Caetano and his passengers in Malone, New York.
The passengers arrested with Caetano were prosecuted for the misdemeanor offense of entry without inspection.
Gabriel Felipe Dias Prado, age 19, was convicted on May 29, 2018 and sentenced to 20 days in jail. Ilcione Bazoni, also known as Carlos Cousa, age 62, was convicted on June 8, 2018 and sentenced to 45 days in jail.
At the conclusion of today’s sentencing, Caetano was remanded to the custody of the Department of Homeland Security for removal proceedings.
This case was investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Bozeman man sentenced in firearms caseRead the Press Release
BILLINGS—A Bozeman man convicted of being a felon in possession of a firearm was sentenced to 22 months in federal prison and three years supervised release on Wednesday, U.S. Attorney Kurt G. Alme said.
Anthony Jones, 27, pleaded guilty to the charge in August.
U.S. District Judge Susan P. Watters presided at the sentencing. Judge Watters ordered the sentence to be consecutive to a state District Court sentence in Gallatin County.
Jones was convicted in Gallatin County in August 2017 of criminal possession of dangerous drugs, a felony, and as a result, was prohibited from possessing firearms.
In March 2018, an individual bought a 9mm semi-automatic pistol at Livingston pawn shop. A few days later, Livingston police officers responded to an incident a local motel where Jones, the person who had purchased the pistol and another person were present.
In an interview with law enforcement, Jones admitted to possessing the firearm several times before the weekend police responded to the motel incident and had helped load and clean the pistol.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.
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Birmingham Businessman Sentenced to Prison for Obstruction and Submitting Fictitious Instruments to the IRSRead the Press Release
A Birmingham business executive was sentenced to serve 48 months in prison for passing a fictitious financial instrument and obstructing the administration of the Internal Revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, and United States Attorney Louis V. Franklin Sr., of the Middle District of Alabama.
On September 11, 2018, a federal jury convicted Richard Lee Graham, 55, of Gardendale, Alabama, of passing a fictitious financial instrument and obstructing the administration of the internal revenue laws. Evidence presented at trial in September established for the tax years 2006 to 2009, as of 2014, Graham owed approximately $3.6 million in taxes, penalties, and interest. To collect that tax debt, the Internal Revenue Service (IRS) began seizing Graham’s properties. On July 11, 2014, Graham went to the Montgomery IRS Office with a fictitious “International Bill of Exchange” in the amount of $3.6 million, along with false supporting documents, in an attempt to pay his taxes. A short time later, Graham showed up at the Birmingham IRS Office with another fake instrument of the same type and amount and attempted to use it to settle his tax debt. He also had false documents mailed to an IRS employee in an attempt to prove the legitimacy of the phony check-like instrument.
This was Graham’s second conviction for a tax related offense. In 2006, Graham pled guilty to willfully failing to file a tax return.
In addition to the term of imprisonment, U.S. District Court Judge Lawrence S. Coogler ordered Graham to serve five years of supervised release and to pay a $10,000 fine.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Franklin commended agents of IRS-Criminal Investigation, who investigated this case, and the Alabama Department of Revenue, who provided assistance, and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Megan A. Kirkpatrick of the Middle District of Alabama, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Belmont Man Sentenced to 9 Years in Prison for Methamphetamine TraffickingRead the Press Release
CONCORD, N.H. - Joseph C. Callahan, 36, of Belmont, New Hampshire, was sentenced in federal court to 9 years in federal prison for possessing over five grams of methamphetamine with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on July 31, 2017, the Belknap County Special Operations Group executed search warrants at Callahan's residence on Arlene Drive in Belmont. Callahan was arrested at the scene. The searches uncovered approximately 24 grams of actual methamphetamine, suboxone, digital scales, and more than $13,000 in cash. Also recovered at the residence were three stolen firearms.
Callahan previously pleaded guilty on August 30, 2018.
“Even in the midst of the opioid crisis, methamphetamine presents a very serious threat to the safety of our community,” said U.S. Attorney Murray. “We will continue to work each day with our law enforcement partners to identify, prosecute, and incarcerate those who are distributing this very dangerous drug.”
“DEA is committed to bringing to justice those that distribute methamphetamine,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s substantial sentence not only holds Mr. Callahan accountable for his crimes but serves as a warning that DEA and its local, state and federal law enforcement partners will do everything in our power to keep this highly addictive drug off the streets of New Hampshire.”
This matter was investigated by the Belknap County Sheriff's Department, Belmont Police Department, Alton Police Department, Tilton Police Department, Nevada Highway Patrol, Drug Enforcement Administration, and U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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Bank Robber Sentenced to 48 Months in PrisonRead the Press Release
PROVIDENCE, RI – A Fall River man who stole a car in New Bedford in April 2017, and used it later the same day as his getaway vehicle after robbing a bank in Tiverton was sentenced today to 48 months in federal prison.
At the time of his guilty plea, Cody Toolis, 28, admitted to the Court that on April 2, 2018, he stole a car from outside a home in New Bedford. About two hours later he robbed a branch office of Bank Newport in Tiverton of $460 and fled in the stolen vehicle.
According to court documents, at approximately 9:15 AM, Toolis entered the bank and handed a note to a teller that read, “Do not move, I have a gun, need $500 in 20’s, I am desperate.” The teller gave Toolis $460. A witness told police she saw the bank robber leave the bank parking lot in a vehicle that police determined fit the description of the vehicle stolen in New Bedford.
Tiverton Police posted a still-photograph taken from bank surveillance video of the robber on social media. Numerous tips from the public and law enforcement agencies identified the person in the photograph as Cody Toolis. One week later, on April 9, Toolis turned himself in to the Bristol, R.I., Police Department.
Toolis pled guilty in August to one count of bank robbery.
At sentencing today, U.S. District Court Judge John J. McConnell, Jr., sentenced Toolis to 48 in federal prison to be followed by 2 years supervised release. Toolis was ordered to pay $460 restitution to Bank Newport.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 70-87 months. The government recommended the court impose a sentence of 78 months in prison.
Toolis’ sentence is announced by United States Attorney Stephen G. Dambruch, Tiverton Police Chief Patrick W. Jones, Special Agent in Charge of the FBI Boston Division and Harold H. Shaw.
The case was prosecuted by Assistant U.S. Attorney Denise M. Barton.
The matter was investigated by the Tiverton Police Department and the FBI.
United States Attorney Stephen G. Dambruch acknowledges and thanks the Fall River, New Bedford, and Bristol Police Departments for their assistance in the investigation and preparation of this case for prosecution in U.S. District Court.
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Baltimore Man Pleads Guilty to Running Tax Refund Scam in Central New YorkRead the Press Release
SYRACUSE, NEW YORK – Arkmallah Hilliard, age 38, of Baltimore, Maryland, pled guilty today to conspiring to defraud the United States and admitted to receiving more than $400,000 as a result of filing hundreds of fraudulent tax returns.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge James D. Robnett, Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office; and Special Agent in Charge Leigh-Alistair Barzey, Defense Criminal Investigative Service (DCIS), Northeast Field Office.
In pleading guilty, Hilliard admitted that he conspired with former Utica resident Anas Wilson and others to defraud the IRS by filing false and fraudulent income tax returns in the names of various individuals and thereby obtained tax refunds to which they knew they were not entitled. Hilliard admitted that he used his own bank accounts and bank accounts he controlled that had been opened by co-conspirators to receive the tax refunds, after which Hilliard and others withdrew, spent, and transferred the money for their own purposes. Wilson previously pled guilty to similar charges and is serving a 12-year prison sentence.
Hilliard will be sentenced on May 23, 2019 by Senior United States District Judge Frederick J. Scullin, Jr.
Hilliard faces a maximum sentence of 5 years in prison, a fine of up to the greater of $250,000 or twice the pecuniary gain to the defendant or the loss to any victim, and a term of post-imprisonment supervised release of up to 3 years. Hilliard also faces a forfeiture money judgment of up to $462,107.00, representing the unrecovered proceeds he received as part of the conspiracy. 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 IRS-CI and DCIS, and is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Badger Woman Previously Convicted of Bank Fraud Sentenced for Throwing Away Mail Sent to Her EmployerRead the Press Release
A woman who threw away a federal garnishment against her wages sent to her employer was sentenced December 4, 2018, to 90 days’ imprisonment.
Terri Cosgrove, age 55, from Badger, Iowa, received the prison term after an August 20, 2018, guilty plea to one count of obstruction of correspondence.
On July 13, 2004, as part of the sentence she received in federal court for committing bank fraud, Cosgrove was ordered to pay $188,708.01 in restitution. After repeated attempts to collect restitution from Cosgrove, the United States attempted to garnish Cosgrove’s wages by contacting her employer. After the employer did not respond to the garnishment letter, law enforcement questioned Cosgrove. Cosgrove told law enforcement that she destroyed the garnishment paperwork sent to her employer because she did not want her wages garnished.
Cosgrove was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Cosgrove was sentenced to 90 days’ imprisonment. She must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Cosgrove continues to owe restitution for her bank fraud. Cosgrove is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Matthew J. Cole and investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service. Court file information at https://ecf.iand.uscourts.gov. The case file number is CR 18-3014 MWB.
The United States Attorney’s Office works to ensure victims are made whole as quickly as possible. If you know someone who owes federal restitution and may have assets available to satisfy their restitution obligation, you are urged to call 319-731-4080.
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Auburn Man Charged with Embezzling from Labor UnionRead the Press Release
BOSTON – An Auburn man was arrested today and charged in federal court in Worcester in connection with embezzling from a labor union.
Ivar Carlson, 58, was charged with one count of embezzlement from a labor union. He appeared in federal court in Worcester today and was released on conditions.
According to the charging document, Carlson was the former business agent and treasurer for Local B-395 of the International Alliance of Theatrical Stage Employees (IATSE), which represented workers at the DCU Center in Worcester. It is alleged that from around March 2007 until September 2016, Carlson embezzled approximately $37,014 belonging to Local B-395 by writing checks from the Local B-395’s bank account, cashing those checks, and using the cash for his own personal expenses.
Carlson faces a sentence of no greater than five years in prison, up to three years of supervised release and a fine of up to $10,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jonathan Russo, District Director, U.S. Department of Labor, Office of Labor-Management Standards, made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.