Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
11 February 2019
Bradley Chiropractor, Former Office Manager Guilty of Fraud, Tax ChargesRead the Press Release
URBANA, Ill. – A chiropractor who previously owned and operated the Bradley Chiropractic Clinic, located in Bradley, Ill., pleaded guilty today to wire fraud and failure to file tax returns. Joseph Mayotte, 72, of Kankakee, Ill., appeared in Urbana before Chief U.S. District Judge James E. Shadid. Mayotte’s trial had been scheduled to begin today with jury selection. Sentencing is scheduled on June 7, 2019. The clinic’s former office manager, Constance Leadingham, aka Connie, had previously pleaded guilty to bank fraud and filing false income tax returns and is scheduled to be sentenced on March 1, 2019.
Mayotte admitted that from January 2007 to October 2015, he executed a scheme to defraud Blue Cross / Blue Shield Insurance by submitting false billing claims. The false claims were typically made on behalf of patients for whom the clinic had not provided any services or were made in excess of the actual services provided. As a result, Blue Cross / Blue Shield paid the clinic more than $250,000 to which it was not entitled. Mayotte then used the money for his own benefit. In addition, Mayotte admitted that he failed to file federal income tax returns for tax years 2011 through 2014.
Leadingham, of Watseka, entered pleas of guilty on Nov. 28, 2017, to bank fraud and filing false income tax returns for tax years 2011, 2012, and 2013. Leadingham admitted that as the clinic’s office manager, she participated in the scheme by submitting fraudulent billing claims to the company. Leadingham then wrote checks payable to herself from the clinic’s checking account in addition to her salary. As a result, Leadingham obtained more than $380,000 to which she was not entitled. Further, Leadingham admitted that she did not disclose the additional income that she had fraudulently obtained from the clinic for her tax filings in 2011, 2012, and 2013.
The charges are the result of investigation by the FDIC Office of Inspector General; Internal Revenue Service Criminal Investigations, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Eugene L. Miller and Timothy A. Bass represented the government in the case prosecutions.
The maximum statutory penalty for wire fraud is 20 years in prison; for bank fraud the penalty is up to 30 years in prison. The maximum statutory penalty is prescribed by Congress and is provided here for informational purposes; sentences are determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Boston Residents Indicted on Drug and Firearm Conspiracy Charges in BurlingtonRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that two defendants have been indicted in Burlington on multiple charges, including Conspiracy to Distribute Cocaine Base, Conspiracy to Possess Firearms in Furtherance of a Drug Trafficking Crime, and Interstate Transportation of Firearms with Removed Serial Numbers. The indictment follows a criminal complaint that had been previously filed, alleging that the two Boston residents agreed with one another and others to distribute crack cocaine and obtain firearms in the Swanton area between September 2017 and March 2018. John Guerrero, 26, and Darwin Medina, 34, both of Boston, Massachusetts, were indicted in a four-count indictment by a federal grand jury in Burlington. An arraignment on the indictment will be scheduled soon.
According to court records, John “Sunshine” Guerrero and Darwin “Weezy” Medina had moved into a residence in Swanton, Vermont area and used it as a place from which to distribute large quantities of crack cocaine—in excess of 280 grams. They regularly brought cocaine powder to Vermont from South Boston, prepared crack cocaine from it in Swanton, and distributed it daily to multiple customers in exchange for cash or firearms. The pair acquired multiple firearms by having drug customers “straw purchase” the guns, wherein the licensed firearms dealers were unaware that the actual purchasers were not the individuals appearing in the stores. The serial numbers of many of the firearms were removed or obliterated by the defendants, who then transported or directed the transportation of many of the firearms from Vermont to Boston. At least five of those firearms have since been recovered by law enforcement in the Boston area during investigations. Guerrero and Medina were arrested on January 15, 2019, by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in Boston after a federal criminal complaint was filed earlier this year. The defendants appeared in federal court in Burlington on February 5 for detention hearings, and they were remanded to the custody of the United States Marshal pending further case proceedings.
In an earlier phase of the investigation, the grand jury indicted five of the drug customers who had straw purchased approximately thirty firearms for Guerrero and Medina. As noted in the criminal complaint associated with that case, those customers provided or helped to provide false information to gun stores in Franklin County to acquire the firearms and transfer them to Guerrero and Medina in exchange for crack cocaine. The defendants completed firearm transaction forms when purchasing the firearms in which they falsely stated that they were the actual buyers of the firearms and were not unlawful users of any controlled substances. https://www.justice.gov/usao-vt/pr/five-arrested-and-charged-straw-purchasers-30-firearms
The United States Attorney emphasizes that the charges contained in both indictments are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If they are convicted as charged, defendants John Guerrero and Darwin Medina face a minimum term of imprisonment of fifteen years and a maximum possible term of life imprisonment, but any sentence ultimately imposed will be advised by the United States Sentencing Guidelines.
U.S. Attorney Christina E. Nolan stated: “It is of paramount importance that we stop the flow of dangerous drugs into Vermont and the trafficking of illegally acquired Vermont guns to drug source cities, like Boston. This case is an outstanding example of the ATF working seamlessly with local police departments in Massachusetts and Vermont to do just that. We will continue to pursue serious charges and sentences for those who mix guns and violence with the drug trade.”
The United States Attorney’s Office acknowledges the work of ATF agents in Vermont and Massachusetts, the Saint Albans Police Department, and the South Boston Police Drug Control Unit in conducting this investigation. U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood, a nationwide commitment to reduce gun crime in America. Led by the U.S. Attorney’s Office and ATF, Project Safe Neighborhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who violate federal gun laws. For more information about Project Safe Neighborhood and Project Safe Vermont, please visit: https://www.justice.gov/psn.
Assistant United States Attorney Matthew Lasher will be leading the prosecution. Defendant John Guerrero is represented by attorney David Kidney, and defendant Darwin Medina is represented by attorney Michelle Anderson Barth.
Baldwinsville Man Sentenced for Obstructing the Department of LaborRead the Press Release
SYRACUSE, NEW YORK - Elias J. Sawalha, age 64, of Baldwinsville, New York, was sentenced today to serve a three-year term of probation and a $10,000 fine after previously pleading guilty to submitting fraudulent documents to the Department of Labor’s Wage and Hour Division, announced United States Attorney Grant C. Jaquith and Michael C. Mikulka, Special Agent in Charge of the New York Region of the United States Department of Labor, Office of Inspector General, Office of Investigations.
As part of his guilty plea, Sawalha admitted that he submitted false documents to influence a U.S. Department of Labor investigation relating to the wages of his employees at two gas stations he owned and operated in Onondaga County. In December 2014, the Department of Labor’s Wage and Hour Division notified Sawalha that it was investigating violations of the Fair Labor Standards Act. This investigation revealed that Sawalha willfully failed to pay more than $30,000 in overtime wages and back pay to four employees as required by federal law. Sawalha agreed to pay the applicable overtime wages and back pay, and he subsequently submitted documentation to the Department of Labor certifying under penalty of perjury that he had made the required payments “in full.” That paperwork included copies of checks written out to the four employees. The Department of Labor closed its investigation, though it later reopened the investigation upon learning that Sawalha never provided the checks to his employees, even though he did manipulate their pay stubs (and, consequently, their annual W2 forms) to falsely reflect that they had been paid. After additional investigation, the defendant admitted that he had falsified the paperwork in attempt to shut down the investigation without paying his employees what he owed them.
This case was investigated by the United States Department of Labor, Office of Inspector General, Office of Investigations, and was prosecuted by Assistant U.S. Attorneys Sahar L. Amandolare and Michael F. Perry.
Bakersfield Man Pleads Guilty to Cyberstalking Florida WomanRead the Press Release
FRESNO, Calif. —Earl John Velasquez, 23, of Bakersfield, pleaded guilty today to stalking, U.S. Attorney McGregor W. Scott announced.
According to the plea agreement, between January and June 2018, Velasquez used various cellphones and social media applications to post threatening statements to a woman living in Florida. In addition to his own accounts, Velasquez created a social media account using a fictitious name and also used a relative’s account to send the threatening messages. Among other threats, Velasquez claimed he was planning on shooting up a tattoo parlor in Florida. On April 30, he commented on an Instagram post in which the victim was tagged and said, “I’m going to kill that girl one day.” This conduct caused substantial emotional distress to the victim.
This case is the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Department. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.
Velasquez is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on May 6, 2019. Velasquez faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Associate of Former Border Patrol Agent Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
An associate of a former U.S. Border Patrol Agent (BPA) pleaded guilty to conspiring to accept money in return for helping to smuggle marijuana and other illegal drugs into the United States.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney for the Southern District of Texas Ryan K. Patrick, Special Agent in Charge Perrye Turner of the FBI’s Houston Field Office and Special Agent in Charge Juan Benavidez of the Department of Homeland Security Customs and Border Protection Office of Professional Responsibility (CBP OPR)’s Houston Field Office made the announcement.
Daniel Hernandez, 46, of Roseville, California, pleaded guilty on Feb. 5 to one count of conspiracy to bribe a public official before U.S. Magistrate Judge Nancy K. Johnson in the Southern District of Texas. Sentencing has been scheduled for May 9, before U.S. District Judge Gray H. Miller, who accepted the plea on Feb. 8.
According to the plea documents, between 2013 and May 2014, Hernandez and the BPA agreed, and took overt acts, to facilitate the trafficking of illegal drugs, including marijuana, into the United States from Mexico on behalf of a drug trafficking organization (DTO). In exchange for cash payments, they provided an individual they believed to be a member of the DTO with CBP sensor locations, the locations of unpatrolled roads at or near the U.S.-Mexico border, the number of BPAs working in a certain area, keys to unlock CBP locks located on gates to ranch fences along the border, and CBP radios. In total, Hernandez accepted approximately $5,000 in cash in return for facilitating shipments of illegal narcotics into Texas without law enforcement detection.
The FBI with the assistance of CBP OPR, investigated the case. Trial Attorneys Rebecca Moses and Peter M. Nothstein of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorneys John Pearson and Arthur R. Jones of the Southern District of Texas are prosecuting the case.
Ardmore Man Sentenced to 60 Months for Possession of Stolen FirearmRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jason Glen Willis, age 32, of Ardmore, Oklahoma, was sentenced to 60 months imprisonment and 3 years of supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2); and to Possessing, Receiving And Concealing A Stolen Firearm, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2). The charges arose from an investigation by the Ardmore Police Department, the Murray County Sherriff’s Office, the Oklahoma Highway Patrol, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation.
The Indictment alleged that on or about March 20, 2017, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed a Heritage Manufacturing, Inc., Model Rough Rider, .22 caliber revolver, serial number F76454, a firearm which had been shipped and transported in interstate commerce.
The Indictment also alleged that on or about March 20, 2017, the defendant knowingly possessed, received and concealed the same firearm which was stolen and had been shipped and transported in interstate commerce, knowing and having reasonable cause to believe the firearm was stolen.
United States Attorney Brian J. Kuester said, “One of the top priorities of the Department of Justice is to reduce violent crime and promote public safety. When state, local, tribal, and federal law enforcement agencies work together, as they did in this case, we are able to make progress on that priority. The law enforcement community is at its best when working relationships are strong. I commend the agencies involved in this investigation for their team efforts.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Alleged Gang Member Charged with 2014 Manhattan MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John B. Devito, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an indictment charging FRANK BRANDON, a/k/a “Trizzy,” an alleged member of the “Milla Bloods” gang, with the February 23, 2014, murder of Gashier Mendy, 24, inside the Saint Nicholas Houses in Manhattan, and related offenses. BRANDON was taken into federal custody this morning in Gloversville, New York, and was presented this afternoon before United States Magistrate Judge Kevin Nathaniel Fox. The case is assigned to U.S. District Judge Edgardo Ramos.
U.S. Attorney Geoffrey S. Berman said: “Almost five years ago, Gashier Mendy was shot dead, her life tragically and brutally taken. As alleged in today’s indictment, Frank Brandon killed her. Thanks to the outstanding efforts of the NYPD and ATF, Brandon now faces murder charges for his heinous crime.”
ATF Special Agent-in-Charge John B. Devito said: “Frank Brandon, an alleged member of the ‘Milla Bloods’ gang, was charged with a number of federal offenses including the murder of a young woman. ATF and our law enforcement partners stand united at the frontline in the fight against violent crime. We will aggressively pursue and bring to justice any individual bent on bringing heinous acts of violence into their communities. I would like to thank the members of the ATF/ NYPD Joint Robbery Task Force for their tireless efforts on this case. I would also like to thank the United States Attorney’s Office for their work in prosecuting this case.
According to the allegations in the Indictment[1]:
BRANDON was a member of the “Milla Bloods,” a gang that operated in Manhattan and engaged in racketeering activity, including acts of violence and narcotics distribution. On February 23, 2014, in furtherance of his gang activity, BRANDON shot and killed Gashier Mendy inside 240 West 129th Street.
* * *
BRANDON, 32, of Gloversville, New York, is charged in the Indictment with one count of murder in aid of racketeering, in violation of Title 18, United States Code, Sections 1959(a)(1) and 2; one count of murder through the use of a firearm, in violation of Title 18, United States Code, Sections 924(j) and 2; one count of being a felon in possession of ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 2; and one count of conspiracy to distribute and possess with intent to distribute methamphetamines and marijuana, in violation of Title 21, United States Code, Section 846. BRANDON faces a mandatory minimum penalty of death or life in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for information purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding work of the NYPD and ATF.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorney Dominic A. Gentile is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Activities of the U.S. Attorney’s Office During the Lapse in AppropriationsRead the Press Release
Throughout the recent 35-day lapse in appropriations, press releases for the U.S. Attorney’s Office for the District of Minnesota were very limited as required by Department of Justice rules. However, during any lapse in Congressional appropriations, the Department of Justice’s essential public safety and national security missions continue unabated. As a result, the U.S. Attorney’s Office and federal investigative agencies continued to work full-time alongside their state, local, and tribal partners on all criminal cases and prosecutions. Highlighted below are convictions and sentencings that occurred between December 22, 2018 and January 25, 2019.
On January 2, 2019, MICHAEL SCOTT HANUMAN, 27, pleaded guilty before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minnesota, to one count of possession with intent to distribute methamphetamine and one count of possessing a firearm in furtherance of the drug-trafficking crime. HANUMAN is scheduled to be sentenced on May 14, 2019. This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Dakota County Sheriff’s Office, and the Dakota County Drug Task Force. Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
On January 8, 2019, PRESLEY AARON PELTIER, 22, pleaded guilty to stealing four firearms from a federally licensed firearms dealer. PELTIER entered his guilty plea before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minnesota. This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lakeville Police Department. Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
On January 14, 2019, AVIEL LI GOODMAN, 63, was sentenced to 87 months in prison for receipt of child pornography. GOODMAN, a St. Paul psychiatrist, pleaded guilty to one count of receipt of child pornography on July 20, 2018. This case was the result of an investigation conducted by the FBI. Assistant U.S. Attorneys Katharine T. Buzicky and Carol M. Kayser prosecuted the case.
On January 15, 2019, NOEL DEBRA HALL, 41, was sentenced to 60 months in prison for possession with the intent to distribute heroin and fentanyl. HALL pleaded guilty on September 13, 2018, to a one-count felony information. This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Surya Saxena.
On January 16, 2019, STEVEN MITCHELL GANT, 38, pleaded guilty to conspiring to distribute heroin on the White Earth Indian Reservation. GANT entered his guilty plea before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minnesota. This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force, the West Central Minnesota Drug & Violent Crimes Task Force, the White Earth Police Department, and the Becker County Sheriff’s Office. Assistant U.S. Attorney Deidre Y. Aanstad is prosecuting the case.
On January 16, 2019, KELVIN BAEZ, 34, was found guilty of methamphetamine and firearms violations following a jury trial before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minnesota. BAEZ is scheduled to be sentenced on May 14, 2019. This case is the result of an investigation conducted by the Drug Enforcement Administration. Assistant U.S. Attorney David P. Steinkamp is prosecuting the case.
On January 17, 2019, PHILLIP MARK REINHART, 38, pleaded guilty to production and attempted production of child pornography. REINHART entered his guilty plea before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota. A sentencing hearing is scheduled for June 6, 2019. This case is the result of an investigation conducted by the FBI and the Nicollet County Sheriff's Office. Assistant U.S. Attorney Manda M. Sertich is prosecuting the case.
On January 22, 2019, AMOS KIPROP KOECH, 44, was convicted by a federal jury for sex trafficking a 15-year-old minor. KOECH’S codefendant, ANDRE MATHIS, JR., 33, pleaded guilty on January 10, 2019, to one count of sex trafficking of a minor. This case is the result of an investigation conducted by the FBI and the Duluth Police Department. Assistant U.S. Attorney Laura M. Provinzino is prosecuting the case with Special Assistant U.S. Attorney Jonathan D. Holets.
On January 22, 2019, DAKOTA JAMES LAFAVE, 29, pleaded guilty to assault with a dangerous weapon in aid of racketeering, witness retaliation, and discharge of a firearm in furtherance of a crime of violence. LAFAVE entered his guilty plea before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota. This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, the Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the Mille Lacs Tribal Police Department, and the Minnesota Department of Corrections. Assistant U.S. Attorneys Andrew R. Winter and Bradley Endicott are prosecuting the case.
On January 23, 2019, JOSE MANUEL ORDONEZ, JR., 47, was sentenced to 120 months in prison for his role in a $150 million international Ponzi scheme. ORDONEZ pleaded guilty on February 13, 2018, to one count of conspiracy to commit mail fraud. This case was the result of an investigation conducted by the FBI, United States Postal Inspection Service, and the Minnesota Commerce Fraud Bureau. Assistant U.S. Attorneys Kimberly A. Svendsen and Joseph H. Thompson are prosecuting the case.
On January 23, 2019, two defendants in separate cases, DARVELL DEVONTRE EDWARDS, 27, and CAMERON DAVON DURAND, 25, each pleaded guilty to one count of being a felon in possession of a firearm. EDWARDS and DURAND entered their guilty pleas before Judge Eric C. Tostrud in U.S. District Court in Saint Paul, Minnesota. These cases are thedid result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Saint Paul Police Department. They are being prosecuted by Assistant U.S. Attorneys Benjamin Bejar and Thomas Calhoun-Lopez.
On January 24, 2019, RASHAD YASIN DAVIS, 27, pleaded guilty to one count of criminal damage to property on the Bois Forte Indian Reservation. DAVIS entered his guilty plea before Judge Nancy E. Brasel in U.S. District Court in Saint Paul, Minnesota. This case was the result of an investigation conducted by the FBI and the Bois Forte Police Department, with assistance from the St. Louis County Sheriff’s Office and the Breitung Police Department. Assistant U.S. Attorney Deidre Y. Aanstad is prosecuting the case.
On January 25, 2019, ROGER ERICK SPLETTSTOESZER, 54, was sentenced to 210 months in prison for distribution, receipt, and possession of child pornography. SPLETTSTOESZER was found guilty on April 19, 2018, following a four-day jury trial. This case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Sarah E. Hudleston and Miranda E. Dugi.
“I am honored to lead an office comprised of public servants who are dedicated to the shared mission of pursuing justice,” said United States Attorney Erica H. MacDonald. “I want to thank each and every one of these individuals for their selfless and unwavering service during the course of the partial government shutdown.”
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
A Tennessee Physician, Two Florida Clinic Owners, and a Kentucky Man Convicted for Roles in Tennessee-Based Pill Mill OperationRead the Press Release
LONDON, Ky. – A Tennessee doctor, two clinic owners from the Miami, FL area, and a Woodbine, KY man were convicted today by a federal jury in London on oxycodone-trafficking charges. Three defendants were also convicted of multiple counts of money laundering.
After three days of deliberations following a four-week trial, the jury convicted Timothy Gowder, 71, from Chattanooga, Tennessee, Anwar Mithavayani, 55, and Pete Tyndale, 47, clinic owners from Florida, of conspiracy to distribute oxycodone and oxymorphone. James Bradley Combs, 41, from Woodbine, Kentucky, was convicted of possession with intent to distribute oxycodone. One defendant, Gary Moore, 67, from Chattanooga, Tennessee was acquitted.
According to testimony at trial, Gowder and the clinic owners worked together to run an illicit pain clinic near Chattanooga, Tennessee, called Tennessee Pain Institute (or “TPI”), which drug addicts and drug traffickers in Kentucky and elsewhere used as their supplier. The evidence further revealed that, after the Tennessee Department of Health investigated TPI’s doctors and federal law enforcement executed a search warrant at TPI, clinic owners Tyndale and Mithavayani opened a new pain clinic in North Carolina to cater to the same Kentucky population.
Gowder was indicted in May of 2017, while Mithavayani, Tyndale, and Combs were indicted in January of 2018.
Co-defendant Larry Karr of Keavy, Kentucky, pled guilty to the drug trafficking charge in May of 2018, and was later sentenced to 108 months in federal prison.
“Prosecuting the unlawful distribution of opioids by medical professionals is a foremost priority of the Department of Justice and our Office,” said United States Attorney Robert M. Duncan, Jr. “The defendants contributed to the opioid crisis that is ruining lives in our District and throughout the Nation. I commend the law enforcement agencies involved for their thorough investigation, which ultimately resulted in the jury’s verdict that holds these defendants accountable for their actions.”
U.S. Attorney Duncan; Special Agent in Charge D. Christopher Evans of the Drug Enforcement Administration’s Louisville Field Division; Special Agent in Charge Matthew Line of the Internal Revenue Service, Criminal Investigation Division; Andy Beshear, Kentucky Attorney General; and Richard W. Sanders, Commissioner of Kentucky State Police jointly announced the convictions.
The investigation was conducted by the DEA, the IRS, and the Kentucky Attorney’s General Office and the KSP. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Gregory Rosenberg.
The Court will set a date for the defendants to appear for sentencing. Combs faces a maximum sentence of 20 years in prison, Gowder faces up to 40 years, while Mithavayani and Tyndale face up to 120 and 130 years in prison, respectively. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing a sentence.
4 Individuals Indicted on Firearm Charges as Part of Federal Investigation That Disrupted Missouri-to-Chicago Gun PipelineRead the Press Release
CHICAGO — A convicted felon from Chicago was arraigned today on a federal firearm charge for illegally possessing three handguns on the city’s South Side.
DERRICK CLAIBORNE, 43, of Chicago, pleaded not guilty to one count of illegal possession of a firearm by a convicted felon. U.S. Magistrate Judge Sidney I. Schenkier ordered Claiborne to remain detained in federal custody.
Claiborne was one of four defendants indicted last month as part of a federal investigation that disrupted a Missouri-to-Chicago firearms pipeline. The probe, led by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, revealed that numerous handguns were brought to Chicago last year by two Missouri residents – JUMONTA MOORE and MARCUS INGRAM, according to a criminal complaint and affidavit previously filed in the case. Moore and Ingram then supplied the guns to JAMES SAUNDERS, a convicted felon from Chicago, who illegally sold some of the firearms to confidential informants who were cooperating with law enforcement, the complaint states. Saunders also allegedly sold three guns to Claiborne.
All four defendants were recently arrested.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of ATF; and Eddie Johnson, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Jared C. Jodrey.
Saunders, 47, is charged with five counts of illegal possession of a firearm by a convicted felon, and one count of dealing firearms without a license. On Friday, Saunders pleaded not guilty to the charges. He remains in federal custody.
Ingram, 26, of Charleston, Mo., is charged with two counts of illegal transportation of a firearm by a person under felony indictment. Ingram allegedly transported five handguns to Chicago last fall while under an unrelated felony indictment in Scott County, Mo. Ingram pleaded not guilty to the federal charges during his arraignment earlier this month. He remains in federal custody.
Moore, 20, of Sikeston, Mo., is charged with one count of illegal transportation of a firearm by a person under felony indictment. Moore allegedly transported two handguns to Chicago last June while under an unrelated felony indictment in New Madrid County, Mo. Moore pleaded not guilty to the federal charge during his arraignment last month. Judge Schenkier ordered Moore released from custody on a $50,000 appearance bond.
Claiborne was previously convicted of two felonies, including a gun-related conviction, and was not lawfully allowed to possess a firearm when he allegedly purchased three handguns from Saunders last fall in Chicago’s Woodlawn neighborhood.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Dealing firearms without a license is punishable by a maximum sentence of five years in prison. Illegal possession by a convicted felon carries a maximum sentence of ten years. Illegal transportation by a person under felony indictment is punishable by up to ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
8 February 2019
Watertown Woman Convicted of Assaulting Federal OfficerRead the Press Release
ALBANY, NEW YORK – A jury voted yesterday to convict Catherine M. Melhuish, age 34, of Watertown, New York, of assaulting a federal officer in St. Lawrence County, following a 4-day trial.
The announcement was made by United States Attorney Grant C. Jaquith and William Maddocks, Deputy Chief Patrol Agent, U.S. Border Patrol, Swanton Sector.
United States Attorney Grant C. Jaquith said: “Today’s conviction demonstrates our commitment to enforcing federal laws that protect those who protect and serve our country and communities, such as the U.S. Border Patrol Agent assaulted by the defendant.”
U.S. Border Patrol Swanton Sector Deputy Chief Patrol Agent William Maddocks stated: “Swanton Sector appreciates the support of the U.S. Attorney’s Office for the Northern District of New York in their diligent prosecution of this case. This conviction shows that assaults on law enforcement will not be tolerated.”
Melhuish, a lawful permanent resident of the United States and citizen of Canada, assaulted a Border Patrol Agent at approximately 1 a.m. on September 18, 2017. The agent encountered Melhuish while responding to a request from the St. Lawrence County Sheriff’s Office, which had been contacted by members of the public about a woman wearing dark clothing and walking on State Route 37 near the United States/Canada border.
As part of the agent’s investigative stop, he asked Melhuish for her identification, which she agreed to provide. The agent touched Melhuish’s hand when he reached out to steady the identification so he could read the information off of it. Melhuish became agitated, spit in the agent’s face and bit the agent’s hand.
Melhuish will be sentenced on February 19 by Senior United States District Judge Thomas J. McAvoy.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
Waterloo Methamphetamine User Sentenced to over a Year for Illegally Possessing a HandgunRead the Press Release
A Waterloo man who illegally possessed a firearm and ammunition while being a user of marijuana and methamphetamine was sentenced today to more than one year in federal prison.
Scott Francis Gilson, age 38, from Waterloo, Iowa, received the prison term after a September 4, 2018 guilty plea to possession of a firearm and ammunition by a drug user.
Evidence at sentencing showed police stopped Gilson after observing him drive erratically on a motorcycle. During the traffic stop, police seized a .45 caliber firearm from his waistband. The firearm was loaded with the hammer cocked back.
Gilson was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Gilson was sentenced to 12 months’ and one day imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Gilson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Bureau of Alcohol Tobacco and Firearms and the Waterloo Police Department. This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-206.
Follow us on Twitter @USAO_NDIA.
Waterloo Felon Sentenced to over Four Years for Illegally Possessing a FirearmRead the Press Release
A Waterloo man who possessed a firearm after being convicted of a felony offense was sentenced today to more than four years in federal prison.
Brady Lee Morgan, age 25, from Waterloo, Iowa, received the prison term after a July 13, 2018 guilty plea to possession of a firearm by a felon.
Evidence during the case showed Morgan was in possession of a firearm after police received information that he was in possession of a firearm and cocaine. Police located Morgan at a residence in Waterloo and arrested him pursuant to a previously issued state warrant. Immediately next to Morgan, in a bag, was a firearm as well as drug packaging material. Morgan had previously been convicted of assault causing serious injury after participating in a fight that permanently left the victim without the use of one eye.
Morgan was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Morgan was sentenced to 57 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Morgan is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Bureau of Alcohol Tobacco and Firearms and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2030.
Follow us on Twitter @USAO_NDIA.
Waterbury Man Sentenced to 2 Years in Federal Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that, FELIX COLON, 21, of Waterbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 24 months of imprisonment, followed by three years of supervised release, for trafficking heroin.
According to court documents and statements made in court, in the fall of 2017, the FBI, ATF and Waterbury Police Department began an investigation into drug trafficking by suspected members of “Addicted to Money,” also known as “ATM,” a violent street gang operating in Waterbury. The investigation, which included court-authorized wiretaps, physical surveillance and controlled purchases of heroin and crack cocaine, resulted in federal charges against 11 individuals.
Intercepted communications revealed that Colon purchased and sold distribution quantities of heroin.
Colon was arrested on July 17, 2018. On that date, a search of his residence revealed approximately 56 gross grams of heroin packaged for distribution, approximately 41 gross grams of marijuana, a .40 caliber semiautomatic pistol, .40 and .45 caliber ammunition, a digital scale, and multiple cell phones.
The National Integrated Ballistic Information Network (NIBIN) has identified the seized .40 caliber pistol as the firearm that was used in a shooting of a member of a rival gang in Waterbury in May 2017. The investigation into the shooting is ongoing.
Colon has been detained since his arrest. On November 16, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
This matter is being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Waterbury Police Department’s Gang Task Force. The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and Natasha M. Freismuth.
Virgin Islands U.S. Attorney's Office Staff Receives Prestigious DOJ Award for Post-Hurricanes Leadership and ServiceRead the Press Release
U.S. Attorney Gretchen C.F Shappert announced today that a nine-member administrative team in the Virgin Islands U.S. Attorney’s Office (VI-USAO) has been recognized for their extraordinary service, following Hurricanes Irma and Maria. In September of 2017, the VI-USAO became the only USAO to encounter two Category 5 hurricanes in less than two weeks. Staff members were without power and running water – many for over 100 days. A core team worked tirelessly to ensure that VI-USAO offices in both St. Thomas and St. Croix could resume operations and continue the work of the Department of Justice. The District Court opened the court a few weeks after the storms, thereby requiring the USAO to resume operations under hazardous conditions. According to U.S. Attorney Shappert, "Alphonso Andrews, Meredith Edwards, Melissa Flottman, Antoinette M. James-Alleyne, James Latham, Daniel Leinenbach, Ingrid Richardson, Sophia Starr, Sigrid Tejo-Sprotte, and Keima Willett worked tirelessly, as an ad hoc administrative team, to aid the VI-USAO in recovery efforts. They worked for several months, in the office and in their homes, including during periods when Internet service was non-existent, to ensure that the USAO was operational. Because of their dedication, federal prosecutors and staff were able to serve the needs of this community after the storms."
The Department of Justice Director’s Award for Superior Performance by an Administrative Team will be presented to the VI-USAO staff during an awards ceremony at the Department of Justice in Washington, D.C., hosted by Department leadership, later this year. "The Virgin Islands U.S. Attorney’s Office is one of the smallest of the 94 U.S. Attorney’s Offices in the nation, but it is also one of the most dynamic and dedicated federal offices anywhere," Shappert said. "We punch above our weight. And that’s what it means to be ‘VI Proud and VI Strong.’"
United States Files False Claims Act Suit Against Mission Support Alliance LLC, Several Lockheed Affiliates, and Jorge Francisco Armijo for Inflated Information Technology Subcontract CostsRead the Press Release
The United States has filed suit against Mission Support Alliance LLC (MSA), Lockheed Martin Corporation (LMC), Lockheed Martin Services Inc. (LMSI), and Jorge Francisco Armijo for alleged false claims and kickbacks in connection with a multi-billion dollar contract with the Department of Energy (DOE) to support the environmental cleanup at the Hanford Site near Richland, Washington, the Justice Department announced today. MSA is a Delaware Limited Liability Corporation that, during the time alleged in the lawsuit, was owned by Lockheed Martin Integrated Technology LLC, Jacobs Engineering Group Inc., and Centerra Group (formerly G4S Government Solutions, and, prior to that, Wackenhut Services Inc.). Both Lockheed Martin Integrated Technology and LMSI were wholly-owned subsidiaries of LMC. Mr. Armijo is a Vice President of LMC and also served as a President of MSA during the time period in question.
“Where Congress has allocated money for specific purposes, we will not tolerate unlawful conduct by contractors who seek to enhance their profits at the expense of taxpayers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This lawsuit demonstrates that the Department of Justice will work tirelessly to ensure that public funds are used for the important purposes for which they are intended.”
The multi-billion dollar MSA Contract with DOE required MSA to provide a number of site-wide services to DOE and to other contractors involved in the clean-up of the Hanford Site. The allegations in the complaint relate to the management and technology solution services that MSA agreed to provide at Hanford. In January 2010, without competition, MSA awarded its affiliate, LMSI, a $232 million subcontract to perform that work from Jan. 1, 2010 through June 2016.
The United States’ complaint alleges that the defendants knowingly made or caused false statements to the DOE regarding the amount of profit included in the billing rates for LMSI under the subcontract it was awarded by its affiliate, MSA. The complaint also alleges that the defendants’ claims for these inflated rates violated the False Claims Act.
In addition, the complaint alleges that LMC made payments of more than $1 million to Armijo and other MSA executives in order to obtain improper favorable treatment from MSA with respect to the award of the LMSI subcontract at the inflated rates. The complaint further alleges that these payments violated the Anti-Kickback Act.
“Fraud, corruption, and self-dealing at Hanford will simply not be tolerated,” said U.S. Attorney Joseph H. Harrington for the Eastern District of Washington. “The critical mission of cleaning up the Hanford Site in a safe, timely, environmentally responsible, and cost-effective manner is too important to the public and the residents of this region.” Harrington went on to state, “This enforcement action demonstrates and underscores the United States Attorney’s Office’s commitment to working with our law enforcement partners to hold fraudsters accountable, whether they are individuals, businesses, or the nation’s largest corporations.”
“The Department of Energy Office of Inspector General is committed to ensuring the integrity of Departmental contracts and financial expenditures,” said Teri L. Donaldson, Department of Energy Inspector General. “We take allegations of false claims, overbilling and kickbacks very seriously and will aggressively investigate these matters to ensure efficiency throughout DOE programs. We appreciate the efforts of the DOJ in pursuing these allegations and will continue our collaboration with the DOJ to investigative those who seek to defraud Department programs.”
“The Department of Energy identified the possibility of fraud to the Department of Justice and DOE Office of Inspector General during DOE’s administration of the contract,” said Joe Franco, Deputy Manager for the Richland Operations Office at Hanford. “DOE appreciates the efforts of the Department of Justice and the Inspector General, and we will continue to assist with their investigation and prosecution of the alleged fraudulent activity. DOE will not tolerate fraudulent behavior by its contractors and will continue to strengthen its federal oversight at Hanford.”
This matter is being handled by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of Washington, and the DOE-OIG. The claims asserted by the United States are allegations only; there has been no determination of liability.
The lawsuit is captioned United States v. Mission Support Alliance, LLC, et al.(E.D. Wash.).
United States Attorney’s Office Hosts Annual Office Awards CeremonyRead the Press Release
Jackson, Miss. - Yesterday, U.S. Attorney Mike Hurst recognized members of the U.S. Attorney’s Office for the Southern District of Mississippi and its partners with the presentation of the Southern District’s annual awards for superior performance in 2018.
"These individuals did extraordinary work both inside and outside the U.S. Attorney’s Office last year to further the cause of justice. I am proud not only to present them with these awards but also for the opportunity to work alongside them. Their devotion to duty and call to service have made the lives of Mississippians better, and their work has literally meant that our tax dollars have been rightfully returned and safeguarded. Every American citizen can rest easier knowing that these talented men and women are standing watch on the shores of liberty, ensuring every day that justice is done," said U.S. Attorney Hurst.
Robert E. Hauberg Award for Distinguished Service
This award is named in honor of the achievements of former U.S. Attorney for the Southern District of Mississippi Robert E. Hauberg, the longest serving United States Attorney in the history of our nation. The Hauberg Award is presented annually by this District to an employee who has displayed superior achievement in their assigned duties and who has gone above and beyond the call of duty in some additional public service that makes a significant impact on the community.
The 2018 recipient of the Robert E. Hauberg Award is Assistant United States Attorney Angela Williams. Ms. Williams is a talented litigator and tireless worker. She handles affirmative and defensive cases and serves as the Civil Division’s Senior Litigation Counsel and the office’s Ethics Officer. Last year, she handled several employment discrimination cases, including a particularly complex and sensitive case brought by a doctor against the Veterans Affairs Administration.
Ms. Williams also spent considerable time on multiple False Claims Act cases, including one of the largest cases in the District. She successfully defended the United States in a collateral
attack filed by a former mayor in Mississippi, who had previously been criminally prosecuted by this office for bribery.
In her role as the Civil Division’s Senior Litigation Counsel, Ms. Williams developed a training plan for newly hired paralegals, planned and executed a joint civil training with the U.S. Attorney’s Office for the Northern District of Mississippi, fielded numerous legal questions from colleagues, reviewed colleagues’ written work product, and updated the mentorship manual for the office.
Finally, Ms. Williams has been extensively involved in her Hattiesburg community, and she volunteers with the book buddy program at Johnson Elementary School in Jackson under our office’s Project EJECT initiative. As part of the Hattiesburg Public School District Foundation, Ms. Williams helped establish a scholarship for low income students. She is also very active in her church and she participates in a number of volunteer programs in the Hattiesburg area.
James B. Tucker Award for Superior Prosecutorial Service in Criminal Justice
This award is named for James B .Tucker, the first person to serve as Chief of the Criminal Division in the Southern District. Mr. Tucker distinguished himself in his position and gained a national reputation as a tough but judicious prosecutor throughout the state and throughout the U.S. Department of Justice. The award is presented each year to the Criminal Assistant United States Attorney having demonstrated superior prosecutorial service in the Criminal Division throughout the year.
The 2018 recipient of the James B. Tucker Award is Assistant United States Attorney Mary Helen Wall.
Ms. Wall is receiving this award for her incredible work in prosecuting and continuing to prosecute the largest Health Care Fraud case in the history of state, which has come to be known as the "Compounding Pharmacy" case in Hattiesburg, involving close to $1 billion in fraud by defendants using pharmacies, doctors and unnecessary compounding prescriptions to drive up prices charged to TRICARE, the healthcare system for the military. In addition to prosecuting these criminals, Ms. Wall has also helped to recover approximately $29 million through forfeiture. Her work on this case has already led to eight guilty pleas, one conviction at trial, and an upcoming trial of three more defendants.
Ms. Wall also helped prosecute violent crime cases in the City of Jackson under our office’s Project EJECT initiative, being personally responsible for the prosecution of 13 Project EJECT cases.
Finally, Ms. Wall’s leadership and initiative in assisting and mentoring new AUSA’s in our office is reminiscent of former Criminal Chief James Tucker and further merits her receiving this award.
Daniel E. Lynn Award for Superior Litigation Service in Civil Litigation
This award is named for Daniel E. Lynn, the first person to serve as Chief of the Civil Division in the Southern District. Mr. Lynn set the highest standards of excellence through selfless competence, integrity, and professionalism. The award is presented each year to the Assistant United States Attorney having demonstrated the most superior litigation service affecting the Civil Division throughout the year.
The 2018 recipient of the Daniel E. Lynn Award is Assistant United States Attorney Kristi Johnson for her affirmative, appellate, and defensive case work.
In her first year as the Affirmative Civil Enforcement attorney, Ms. Johnson recovered $1,056,199.00 on behalf of the United States. From the outset, she worked well with a diverse group of federal agencies, including the Drug Enforcement Administration’s diversion group and the National Aeronautics and Space Administration’s Office of Inspector General.
Ms. Johnson’s largest single recovery came from a healthcare fraud case involving a group of physicians in Laurel, Mississippi, whereby the group agreed to pay $817,635.00 to resolve the claims under the Federal Claims Act. She also successfully defended two cases on appeal, one involving a medical malpractice case against the United States and one involving a suit brought by a civilian employee against Camp Shelby for wrongful termination.
Ms. Johnson defended several federal agencies against a myriad of claims, including employment actions taken by the Veteran’s Affairs Administration, the United States Air Force and United States Marshals Service. In addition to all of her civil division work, Ms. Johnson also handled three criminal cases involving violent offenders as part of Project EJECT.
Paulette Womack Support Staff Award for Superior Performance
This award was named in honor Paulette Womack, a long-time, much-loved member of the office who served as Secretary to the first Criminal Division Chief and as the Victim Witness Coordinator for the Southern District. She performed her work with tenacity, persistence and professionalism. This award is presented each year to the Support Staff Employee having demonstrated the most superior efforts in support of the mission of the District, whether it be in the area of administration or legal support.
The 2018 recipient of the Paulette Womack Award is Human Resource Specialist Cindy Pittman for her work over the past year during which our office saw an unusually large number of vacancies, new hires and human resource issues.
In 2018, our office has had approximately 22 personnel vacancies. Ms. Pittman worked tirelessly to ensure that all job announcements were posted and that the process complied with all government rules, regulations and guidelines. Because of Ms. Pittman’s knowledge, proficiency, skills and abilities, almost all of these positions have been filled. Hiring this many individuals for a myriad of positions in one year is an incredible achievement and something that this office or an office of our size has probably never seen in its history.
In all interactions, Ms. Pittman conducts herself in a professional and courteous manner. When called upon to perform a task or gather information, she always performed it with lightning speed and in a detailed fashion.
For the incredible work she has done during this very unusual year of vacancies and hiring by our office, Ms. Pittman embodies the work ethic, can-do spirit and tenacious attitude of Paulette Womack and for all of these reasons, she received the 2018 Support Staff Award.
Donald R. Burkhalter Award for Exemplary Leadership
This is a new award established this year, named for longtime First Assistant United States Attorney Donald R. Burkhalter. This award seeks to recognize, via nomination throughout the office, the employee who has demonstrated extraordinary courage and leadership throughout the year, no matter their position in the office. The award seeks to honor those who lead from action, not a title, who exhibits a positive, upbeat attitude that encourages cooperation and teamwork, and who works tirelessly in advancing the mission and goals of the U.S. Attorney’s Office and the Department of Justice.
The first ever recipient of the Donald R. Burkhalter Award for Exemplary Leadership is Criminal Division Legal Assistant Robin Fish.
Throughout the year, Ms. Fish has been a beacon of perseverance to her friends and colleagues as she bravely and tirelessly conquers both personal and professional challenges. Robin brings a wealth of knowledge and experience to the office along with a positive attitude that makes the work environment better for everyone. She is often seen after hours mentoring both support staff and AUSAs, simultaneously ensuring professional growth of our team and the overall advancement of the office’s mission and goals. Her excellent reputation also extends outside of our office with many members of the court staff relying on her help and expertise. Robin is conscientious, skilled, hardworking and driven. She anticipates what is necessary to ensure the office’s success and takes the initiative to get it done. Her distinctive accomplishments over the past year make her the ideal recipient of this award.
George L. Phillips Distinguished Community Support Award
This award is named for former U.S. Attorney George L. Phillips, who began his service as the youngest U.S. Attorney in the nation, went on to serve under three Presidents for 14 years, and is credited with creating DOJ’s Law Enforcement Coordinating Committee. This award seeks to recognize individuals outside the U.S. Attorney’s Office who have contributed significantly to the increased coordination of law enforcement, who have substantially advanced the goals and mission of the U.S. Attorney’s Office, and who have exhibited genuine, consistent support of law enforcement generally and the U.S. Attorney’s Office in particular.
The 2018 recipient of the George Phillips Award is Mississippi Department of Public Safety Commissioner Marshall Fisher.
Commissioner Fisher is a longtime friend of this office, having served as the Agent in Charge of Drug Enforcement Administration operations in Mississippi for a number of years. After retiring from DEA, he served briefly as the state director for the Mississippi Gulf Coast High Intensity Drug Trafficking Area. From 2005-2014, he served as Director of the Mississippi Bureau of Narcotics, and, in 2015, he was called upon again to serve his state as the Commissioner of the Mississippi Department of Corrections. In January 2017, he was appointed Commissioner of the MS Department of Public Safety, where he serves today.
George Phillips was known nationally for many things as U.S. Attorney, but one of his most prominent accomplishments was creating the DOJ’s Law Enforcement Coordinating Committee. Commissioner Fisher is most deserving of this award because, throughout his career, he has coordinated joint operations involving DEA, Mississippi Bureau of Narcotics, Immigration and Customs Enforcement, Federal Bureau of Investigation, Bureau of Alcohol Tobacco and Firearms, Mississippi Bureau of Investigation, Mississippi Highway Patrol and numerous other federal, state and local law enforcement agencies.
U.S. Attorney's Office Launches New Opioid Abuse Prevention Public Service AnnouncementsRead the Press Release
BOSTON – Today, U.S. Attorney Andrew E. Lelling announced the launch of a new wave of public service announcements primarily aimed at increasing awareness about the dangers and consequences of abusing, selling and sharing opioids. The ads can be found at www.justice.gov/usao-ma/ResistTheRisk.
The scope of the opioid crisis requires a multi-faceted government response that includes educating the public about opioids to prevent addiction before it starts. The U.S. Attorney’s Office, with insight and feedback from various stakeholders, including local law enforcement and first responders, public health professionals, high school students, and formal and informal focus group participants, developed various public service announcements that provide targeted information about opioids. The ads tackle a wide variety of topics such as what constitutes an opioid, the importance of properly storing prescription medications, the dangers associated with abusing pain pills – including mixing pain pills with alcohol or other controlled substances, as well as the laws associated with sharing and distributing opioids, and the legal rights afforded to individuals living with opioid dependence.
“Our mission at the Justice Department is not just to prosecute crime but to prevent it,” said U.S. Attorney Lelling. “We are in the midst of a major public health crisis. Every day federal authorities see people whose lives are being destroyed by opioids, whether those drugs came from street-level dealers or diverted prescriptions. By this point, every drug dealer knows that heroin and fentanyl are killing thousands of people a year, and I will continue to seek the highest sentences available for those who prey on addicts by selling them these deadly substances. But that’s not enough: we should also play a role in educating the public about the dangers of recreational opioid use, of counterfeit pills bought on the street, of mixing prescription opioids with alcohol or other controlled substances, and about the need for increased treatment and rehabilitation opportunities for people in the grip of opioid addiction.”
The new public service announcements released today supplement existing materials launched in November 2017. The new wave includes four 30-second videos (produced by Ted Reed Productions, LLC), six short audio messages, and an animation. The ads will be disseminated widely across both traditional and digital media platforms – from recreational venues, cinemas, television and radio stations, to online music streaming sites, Google advertising, and the most popular social media platforms. While each message addresses a different aspect of the crisis, they all serve the same goal: prevention.
For more information about the campaign, please visit www.justice.gov/usao-ma/ResistTheRisk.
U.S. Attorney's Letter Announcing Launch of PSAs to Address Opioid CrisisRead the Press Release
United States Attorney Andrew E. Lelling offers a new wave of public service announcements designed primarily to increasing awareness about the dangers and consequences of abusing, selling and sharing prescription opioids.
Over the past few years, Massachusetts has ranked as one of the hardest hit in the nation with opioid-related overdose deaths. To help address the crisis, the U.S. Attorney’s Office has created these radio and TV PSAs to remind the public of the dangers of opioid abuse.
“Our mission at the Justice Department is not just to prosecute crime but to prevent it,” said U.S. Attorney Lelling. “We are in the midst of a major public health crisis. We should play a role in educating the public about the dangers of recreational opioid use; of counterfeit pills bought on the street; of mixing prescription opioids with alcohol or other controlled substances; and about the need for increased treatment and rehabilitation opportunities for people in the grip of opioid addiction.”
The new opioid-related PSAs released by the U.S. Attorney’s Office features four :30 TV PSAs and six :30 second radio PSAs. Each of the messages address a different aspect of the opioid crisis.
By utilizing these Massachusetts-based PSAs in your daily programming, you will help to educate the citizens of Massachusetts.
For more information contact: Kristina Mastropasqua, Public Affairs Specialist, United States Attorney’s Office, at [email protected] or 617-748-3147
U.S. Attorney hires five new attorneysRead the Press Release
BILLINGS – U.S. Attorney Kurt Alme announced today the recent hiring of five new assistant U.S. attorneys for the District of Montana.
Two of the attorneys are in the Billings office, while two attorneys are in the Great Falls office and one attorney is in the Helena office.
“I am pleased that these five new attorneys, with excellent education and experience, have agreed to join our office. They received high praise from past employers and other references as to their abilities, and importantly, their character and ethics,” Attorney Alme said. “Their addition will help our office keep the people of Montana safe from meth-driven violent crime, address violent and drug crime on our reservations and fight prescription pill diversion.”
Joining the Billings office’s criminal division are Karla Painter and Julie Patten:
- Painter, from Huntley, received her undergraduate degree from Montana State University – Billings in 2008 and her law degree from the University of Montana in 2011. Painter served as a law clerk for Montana Supreme Court Justice Beth Baker for one year then joined the Missoula County Attorney’s Office, where she advanced to become a senior deputy county attorney prosecuting violent felony and financial crimes.
- Patten, from the White Sulphur Springs area, received her undergraduate degree from the University of Montana in 2007 and her law degree from UM in 2011. Patten joined the Yellowstone County Attorney’s Office in 2011 and advanced to become a senior deputy county attorney. She prosecuted violent crimes and served on the felony drug court team. Patten also represented the Yellowstone County Attorney’s Office on the Project Safe Neighborhoods task force, which is a federal Department of Justice initiative to bring together multiple law enforcement agencies to fight meth-driven violent crime.
Joining the Great Falls office’s criminal division are Kalah A. Paisley and Cassady A. Adams:
- Paisley, from Salem, OR, received her undergraduate degree from Western Oregon University in 2004 and her law degree from Georgetown University, Washington D.C., in 2007. Paisley served as deputy legal counsel for the Crow Nation from 2008 to 2012. Beginning in 2013, Paisley was a prosecuting attorney for Clark County, Washington. Paisley also serves as a judge advocate for the Army National Guard, serving a deployment in the Middle East from June 2017 to March 2018.
- Adams, from Mobile, AL, received her undergraduate degree from Tulane University, LA, in 2012, and her law degree from the University of Colorado in 2015. After graduation, Adams worked as a deputy district attorney for the 11th Judicial District Attorney’s Office in Colorado.
Joining the Helena office’s affirmative civil enforcement unit is Michael A. Kakuk.
- Kakuk, from Helena, received his undergraduate degree from St. Cloud State University, MN, in 2003, and his law degree from Willamette University, Oregon, in 2007. Kakuk began as an honors attorney then worked as an assistant attorney general with the Oregon Department of Justice. In 2013, Kakuk became an attorney with the Office of the Montana State Auditor where he prosecuted both civil and criminal violations of Montana law. He also was an adjunct professor, teaching business law at Helena College, with the University of Montana.
XXX
U.S. Attorney Pak announces the appointment of thirteen new Assistant U.S. AttorneysRead the Press Release
ATLANTA – U.S. Attorney Byung J. “BJay” Pak announced the appointment of thirteen new Assistant U.S. Attorneys who will immediately employ their talents to support the Northern District of Georgia’s (NDGA) mission to enforce the law and defend the interests of the citizens we serve in this district.
“Citizens expect exceptionally talented and dedicated lawyers to represent the United States in federal court,” said U.S. Attorney Byung J. “BJay” Pak. “These outstanding Assistant U.S. Attorneys have proven they are committed to excellence in their service to our country, and the citizens of the Northern District of Georgia.”
- Miguel R. Acosta is a former Special Assistant U.S. Attorney in the Western District of Texas, where he prosecuted immigration offenses. Prior to that he was an attorney with Gobel Flakes, LLC in Orlando. Miguel served as a law clerk to U.S. Magistrate Judge Karla Spaulding in the Middle District of Florida. Miguel graduated magna cum laude, from University of Tampa with a degree in Criminology, and he received his law degree, cum laude, from Florida State University College of Law, where he served as Administrative Editor of the Journal of Land Use & Environmental Law. He began his career in the U.S. Air Force JAG Corps, and is currently a JAG in the Florida Air National Guard. Miguel is a member of the Criminal Division.
- Carolyn “Tippi” Cain Burch handled complex civil litigation and appeals for Chalmers Burch & Adams LLC. Earlier in her career, she was a senior litigation associate with King & Spalding LLP and Swift Currie, McGhee, & Hiers, LLP. She was a law clerk for U.S. District Judge C. Ashley Royal in the Middle District of Georgia. Tippi graduated, cum laude, in political science from Auburn University, and received her law degree, cum laude, from the University of Georgia —where she was Vice Chair of the Moot Court Board. Tippi currently serves as Chairwoman of the Board of the Georgia Department of Community Affairs. Tippi is a member of the Appeals and Legal Advice Division.
- Anthony DeCinque was a Senior Associate at Morris, Manning & Martin, LLP, where he handled complex commercial litigation and appellate matters. Previously, he practiced at Mayer Brown LLP and Patterson Belknap Webb & Tyler LLP in NYC. Anthony graduated from Georgia Tech, where he majored in chemical engineering. He graduated from NYU Law School. Upon graduating, Anthony clerked for Hon. Morton Greenberg, U.S. Court of Appeals for the 3rd Circuit. Anthony is a member of the Civil Division.
- Akash Desai joins us from Kilpatrick Townsend & Stockton LLP, where he was an associate in the trademark litigation group. Akash graduated magna cum laude in Political Science from the University of Rochester, and he received his law degree from Vanderbilt University School of Law. He also holds an LLM from NYU Law School. He clerked for Hon. Jon McCalla, U.S. District Judge in the Western District of Tennessee, and for Hon. Aleta Trauger, U.S. District Judge in the Middle District of Tennessee. Akash is a member of the Civil Division.
- Irina Dutcher served as a Chief Senior Assistant District Attorney for the Fulton County District Attorney’s Office. She was previously an Associate at Kilpatrick Townsend and a Law Clerk for Honorable C. Lynwood Smith, U.S. District Judge for the Northern District of Alabama. Irina received her J.D. from Vanderbilt University Law School and her B.A., magna cum laude, from the University of Southern California. Irina is a member of the Criminal Division.
- Soo Jo served as the senior staff attorney for the Magistrate Court of Gwinnett County, and has over two decades of experience representing city and county governments in numerous subject matter areas. Soo received her J.D. from Georgia State University College of Law and her B.S. from Georgetown University. Soo is a member of the Civil Division.
- Alex Joseph was an Assistant Solicitor in the Fourteenth Circuit Solicitor’s Office in Beaufort, S.C., where she handled felony prosecutions. She was previously an Assistant District Attorney in the Ocmulgee Judicial Circuit, serving as the lead prosecutor in several trials. She previously served as an extern for U.S. Magistrate Judge Linda T. Walker, and after law school, she was a law clerk to Superior Court Judge Robert Chasteen of the Cordele Judicial Circuit. Alex received her law degree from the University of Georgia School of Law, cum laude, where she was a member of the Journal of Intellectual Property Law. She received her B.A. in Political Science from Wellesley College. Alex is a member of the Criminal Division.
- Cal Leipold was previously an AUSA in the Middle District of Louisiana, where he prosecuted OCDETF and violent crime cases. Prior to becoming an AUSA, he served as a JAG officer in the Army. He has done a tour of duty in Kandahar, Afghanistan, and was awarded the Bronze Star Medal for his service. An Atlanta native, Cal earned a B.A. in History from Furman University and his law degree from Georgia State College of Law, where he was the Chief Justice of the Student Honor Court, and a member of the Moot Court Board. He also earned an L.L.M. in National Security law, with distinction, from Georgetown University Law Center. Cal is a member of the Criminal Division.
- Mellori Lumpkin-Dawson was a litigator at Greenberg Traurig, where she handled all aspects of employment litigation. Previously, she practiced law at Holland & Knight LLP in Atlanta. Originally from Bainbridge, Georgia, Mellori graduated summa cum laude from Florida A&M University, where she majored in Business Administration. She received her law degree from UC-Berkeley, where she was the Supervising Editor of the California Law Review and served as the Articles Editor of the Berkeley Journal of African-American Law & Policy. From August 2012 to October 2012, she served as a Special Assistant District Attorney for the South Georgia Judicial Circuit, where she tried two felony jury cases to verdict. Mellori is a member of the Civil Division.
- Scott McAfee was a Senior Assistant District Attorney in the Fulton County District Attorney’s Office, where he was a member of the Major Case Division handling murder cases. He previously served as an intern for Justice David E. Nahmias on the Supreme Court of Georgia. He is an Eagle Scout. Scott earned his law degree, cum laude, from the University of Georgia School of Law, and earned his B.A. in Political Science and Music from Emory University. Scott is a member of the Criminal Division.
- Annalise Peters came from Alston & Bird, where she was an associate in the Litigation and Trial Practice Group. She was an intern with our office in the Major Crimes Section from August to December 2013, during which time she co-tried a marriage fraud case through the 3rd year law intern program. Annalise was a law clerk to Hon. Julie Carnes, 11th Circuit Court of Appeals. A native of Atlanta, Annalise earned her law degree from UVA Law School, where she was the Assistant Managing Editor of the Virginia Law Review. She received her B.A. from University of Georgia, summa cum laude, Phi Beta Kappa, and she was the captain of the UGA Varsity Track & Field Team. Annalise is a member of the Criminal Division.
- Teresa Marie Stolze was a Senior Assistant DeKalb District Attorney in the Stone Mountain Judicial Circuit. Teresa has tried over two dozen cases as lead and was an intern in our office on two occasions – from February to May 2007 and from June to August 2009. Teresa served as a law clerk for then-Superior Court Judge Tilman “Tripp” Self III and Judge Edgar W. Ennis, of the Macon Judicial Circuit. She also worked as a law clerk for Judge Steve Jones, who was then on the Superior Court of Athens-Clarke County. She is a double dawg, earning her law degree, cum laude, from UGA Law School, where she was the Managing Board Notes Editor of the Georgia Law Review. She earned her B.A., summa cum laude, Phi Beta Kappa. Teresa is a member of the Criminal Division.
- Samuel Williams served as a Trial Attorney for the U.S. Department of HUD in Atlanta. Previously, he worked as an extern for the U.S. EEOC and as a Judicial Intern for Hon. Linda M. McGee, North Carolina Court of Appeals. Sam received his J.D. from the University of North Carolina, where he was a Chancellor Scholar, and earned his B.A., summa cum laude, from Appalachian State University. Samuel is a member of the Civil Division.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
- Miguel R. Acosta is a former Special Assistant U.S. Attorney in the Western District of Texas, where he prosecuted immigration offenses. Prior to that he was an attorney with Gobel Flakes, LLC in Orlando. Miguel served as a law clerk to U.S. Magistrate Judge Karla Spaulding in the Middle District of Florida. Miguel graduated magna cum laude, from University of Tampa with a degree in Criminology, and he received his law degree, cum laude, from Florida State University College of Law, where he served as Administrative Editor of the Journal of Land Use & Environmental Law. He began his career in the U.S. Air Force JAG Corps, and is currently a JAG in the Florida Air National Guard. Miguel is a member of the Criminal Division.
U.S. Attorney Dunavant Selected to the Tennessee Bar FoundationRead the Press Release
Memphis, TN – U.S. Attorney D. Michael Dunavant was recently elected a Fellow of the Tennessee Bar Foundation, an association of 868 attorneys across the state. Invitations to membership, which is a position of honor, were extended to 24 attorneys this year by the Board of Trustees. The introduction of new Fellows took place in January at the annual Fellows' Dinner in Nashville.
The Foundation functions with a two-fold purpose. First, it honors attorneys who have distinguished themselves in the profession. The Bar Fellows are limited to those outstanding lawyers, judges and teachers of law licensed to practice for a period of 15 years who have: a) demonstrated an uncompromised dedication to integrity and high personal and professional ethical standards; and b) made outstanding and recognized contributions to the legal profession and to the public good.
Since the program’s inception in 1986, the Foundation’s second purpose is to administer the "IOLTA" (Interest on Lawyers Trust Accounts) program of the Tennessee Supreme Court. Through this program, grants have been awarded in excess of $22,000,000 to law-related public interest projects throughout Tennessee, including providers of legal services to the indigent, organizations that seek to improve the administration of justice, and to law students as scholarships. The 2019 IOLTA award recipients in the Western District of Tennessee include, West Tennessee Legal Services, Inc., in Jackson, the Community Legal Center, the Kindred Place (f/k/a Exchange Club Family Center) in Memphis, and Memphis Area Legal Services, Inc.
"I am honored to be selected as a Fellow along with so many distinguished lawyers and judges who have given distinguished service to the administration of justice in Tennessee," Dunavant said. "The Tennessee Bar Foundation is vital to promoting the highest standards of the legal profession, and I look forward to this unique opportunity to support and participate in its important mission."
D. Michael Dunavant is a graduate of the University of Tennessee at Knoxville and the University Of Mississippi School Of Law, and has been practicing law in West Tennessee for 24 years, including 11 years as the District Attorney General for the 25th Judicial District of Tennessee and 11 years in private practice. Dunavant currently serves as the United States Attorney for the Western District of Tennessee.
D. Michael Dunavant, U.S. Attorney Western District TennesseeTransnational sex offender sentenced to Life in Federal PrisonRead the Press Release
Indianapolis - United States Attorney Josh J. Minkler announced today that Chief Judge Jane Magnus-Stinson sentenced Ricky Dean Clark, 37, to a term of life imprisonment without parole for multiple charges involving the sex exploitation of three minor children, including one child who lived in Ireland. In addition, Clark was sentenced for distributing, receiving, and possessing child pornography.
“While no sentence can cure the damage this child predator did to his innocent victims, we can assure the public that Clark will never ever be in the position to harm another child,” said Minkler. “A sentence of life without parole is reserved for the worst of the worst and that is exactly what Chief Judge Magnus-Stinson imposed in this case.”
“This life sentence sends a very strong message to those who would engage in criminal sexual activity and abuse the trust of innocent children,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “I am proud of the diligent work of our agents and law enforcement partners to identify and investigate sexual perpetrators and bring them to justice so they can’t victimize anyone again.”
“As law enforcement, it is our responsibility to protect those who are most vulnerable, especially innocent children. It is a responsibility the men and women of the IMPD do not take lightly,” said Indianapolis Metropolitan Police Department (IMPD) Chief Bryan Roach. “The dedication of our officers, strengthened collaboration with our local, state, and federal law enforcement partners, and critical investments in technology mean we will continue to remove from our community those who would seek to victimize our children.”
When Clark was originally arrested in Hendricks County, he was charged with possessing child pornography; however, an investigation by the Indiana State Police and the Indianapolis Metropolitan Police Department revealed that Clark’s illegal activities with children were much more extensive. Computer forensic examiners found videos showing that Clark had recorded himself engaging in sexually explicit conduct with a prepubescent child in June of 2013. In addition, investigators also found 17 videos, created by Clark, showing a female child engaged in sexually explicit conduct at Clark’s direction. The child, who was less than 13 years of age, lived in Ireland, and Clark’s communication with the child occurred over Skype. Clark also distributed known images of child pornography to this girl in order to convince the child to engage in sexually explicit conduct for him.
Later in the investigation, forensic examiners uncovered evidence that Clark also recorded himself sexually abusing yet another pre-pubescent child. Clark sent these videos to the girl in Ireland, again as a way to encourage her to engage in sexually explicit conduct for him and to convince her that there was nothing wrong with the requests he made of her.
This case came to the attention of law enforcement in the United States through the cooperative work of the National Center for Missing and Exploited Children, which had received citizen complaints about possibly illegal sexual conduct by the defendant. Along with the FBI, the Indiana State Police and the Indianapolis Metropolitan Police Department investigated these tips. The defendant’s criminal conduct was not limited to the United States. In Ireland, a child’s family discovered Clark’s communications with the child, and the family made a report to An Garda Siochana who began their own investigation. In November of 2017, investigators recovered additional evidence from Ireland, showing the defendant’s pattern of conduct with a female child. Minkler noted the cooperation from the Garda as key to the success of the prosecution, saying “We cannot thank members of the An Garda Siochana enough for their thorough work in collecting and preserving evidence, as well as the care that Irish authorities took in working with the victim’s family and our staff. When predators use the internet to abuse children, they hope that the complexities of international investigations will help them to avoid accountability. This child predator found no safe harbor in either Ireland nor in the United States.”
This case was a joint investigation involving the Indianapolis Metropolitan Police Department’s Digital Forensics Unit, the Indiana State Police Cyber Crime Unit, the Indiana Internet Crimes Against Children Task Force, the FBI, and An Garda Siochana (the Irish National Police). Susie’s Place in Brownsburg provided assistance with child interviews. The federal prosecutors working on the matter were Assistant United States Attorneys Kristina Korobov and Steven DeBrota.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.1.
Tobacco Distributor and Two Distribution Companies Charged with Evading California Excise TaxRead the Press Release
SACRAMENTO, Calif. — On December 13, 2018, a federal grand jury returned a 28‑count indictment against Rahman Lakhani, 40, of Naperville, Illinois; N. Ali Enterprises Inc., an Illinois corporation; and 21st Century Distribution Inc., a Nevada corporation, charging them with committing mail and wire fraud, U.S. Attorney McGregor W. Scott announced.
The indictment was unsealed after the arrest of Lakhani on Thursday.
“ATF defines tobacco diversion as the trafficking of tobacco products in avoidance of Federal, State or foreign taxes or in violation of Federal, State or foreign law,” said ATF, San Francisco Field Division, Special Agent in Charge Ray Roundtree. “ATF and the California Department of Tax and Fee Administration worked diligently to put an end to the defendants unlawful acts of tobacco trafficking. Their actions resulted in a loss of millions of dollars in excise taxes for the state of California and the programs those taxes are used to help. ATF is committed to enforcing the law to ensure that the state of California is not a victim of this crime and that everyone is following the rules for the operation of their business.”
“Tax evasion hurts all of us by reducing revenue funding California’s essential state and local services,” said CDTFA Director Nick Maduros. “Nearly 90 percent of the taxes collected on cigarettes and tobacco products are earmarked to fund important programs, including First 5 California. The CDTFA is committed to combating tax evasion to support California’s communities.”
According to court documents, between August 2015 and April 2018, the defendants devised a scheme to avoid paying excise tax on approximately $26,585,000 worth of tobacco products other than cigarettes such as cigars, chewing tobacco and leaf tobacco called “Other Tobacco Products” or OTP. Lakhani owned and operated N. Ali Enterprises and 21st Century Distribution and used them to sell OTP to companies in California, on which all excise tax had purportedly been paid. The result of the scheme was a loss of approximately $5 million to $10 million to the State of California.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the former California State Board of Equalization, sections of which are now the California Department of Tax and Fee Administration. Assistant U.S. Attorneys Michael D. Anderson and Rosanne L. Rust are prosecuting the case.
If convicted, Lakhani faces a maximum statutory penalty of 20 years in prison and a $250,000 or twice the gross loss or gain. If convicted, N. Ali Enterprises Inc. and 21st Century Distribution face up to five years of probation and a $500,000 fine or twice the gross loss or gain caused by the offense. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Texas Man Charged by Criminal Complaint with Conspiring to Provide Material Support to a Foreign Terrorist OrganizationRead the Press Release
A Texas man was charged today with conspiring to provide material support to a foreign terrorist organization. Assistant Attorney General John C. Demers of the National Security Division, U.S. Attorney Erin Nealy Cox for the Northern District of Texas, and Special Agent in Charge Eric Jackson of the FBI’s Dallas Division made the announcement.
Michael Kyle Sewell, 18, of Arlington, Texas, was charged today by criminal complaint in Fort Worth, Texas, with conspiring to provide material support and resources to Lashkar-e-Taiba (LeT), a Pakistani-based foreign terrorist organization. Sewell has been detained pending further court proceedings.
“Sewell allegedly used social media to recruit and encourage an individual to travel overseas to join a foreign terrorist organization and conspired with that person to provide material support to that organization,” said Assistant Attorney General Demers. “The National Security Division is committed to hold accountable those who engage in this behavior.”
“We stay on constant alert for radicals plotting attacks targeting citizens of the United States, here or abroad,” said U.S. Attorney Nealy Cox. “Countering terrorist threats is our highest priority, and we will continue to work to stem the flow of foreign fighters abroad and bring justice to those who attempt to provide material support to foreign terror organizations. I would like to thank the FBI and our Joint Terrorism Task Force partners for all that they do to keep our communities safe.”
“The men and women of FBI Dallas along with our local, state, and federal partners will continue to work diligently against homegrown violent extremists who provide support to any foreign terrorist organization,” said FBI Special Agent in Charge Jackson. “As threats are uncovered to the community we serve, the FBI and its partners must continue to ensure we are vigilant and determined to prevent any harm to this great nation.”
As set forth in the complaint, Sewell recruited an individual, identified in the complaint as coconspirator 1, to join LeT, a designated foreign terrorist organization. Sewell met the coconspirator online and encouraged him to join LeT.
Sewell provided the coconspirator with contact information for an individual who he believed could facilitate the coconspirator’s travel to join the organization. Unbeknownst to Sewell and the coconspirator, the facilitator was an undercover FBI agent.
Sewell coached the coconspirator about what to say to convince the facilitator that he was sincere in his desire to fight for LeT. Sewell also contacted the facilitator to vouch for the coconspirator’s authenticity. Sewell told both the coconspirator and the facilitator that he would kill the coconspirator if he turned out to be a spy.
The coconspirator made contact with the facilitator and made arrangements with the facilitator to travel to Pakistan to join LeT.
The FBI and its Joint Terrorism Task Force members; including the Arlington Police Department, the Fort Worth Police Department, the Tarrant County Sheriff’s Office, the Naval Criminal Investigation Service, the Department of Homeland Security, and the Texas Department of Public Safety; investigated the case.
Tax Preparer Admits to Filing False Tax ReturnsRead the Press Release
St. Louis, MO – Joseph Thomas, 62, of St. Louis, pleaded guilty to two counts of filing false tax returns. Thomas appeared today before U.S. District Judge Stephen Limbaugh, Jr. who accepted his plea and set his sentencing date for May 9, 2019.
In his plea, Thomas admitted that, on April 22, 2012, he filed a false 2011 United States Form 1040 which understated his income by more than $25,000 and his tax due and owing by more than $10,000. Thomas further admitted that, on May 1, 2013, he filed a false 2012 United States Form 1040 which understated his income by more than $125,000 and his tax due and owing by more than $40,000.
“Taxpayers thinking about cheating on their tax returns should stop and look at the consequences of taking the next step,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. “Those consequences can include going to prison, being branded a convicted felon, and paying back all the taxes owed plus steep penalties and interest.”
Thomas faces up to three years’ imprisonment per count, a fine of up to $250,000 per count or both imprisonment and a fine. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provides recommended sentencing ranges.
The case was investigated by the IRS – Criminal Investigations Office. Assistant United States Attorney Kyle T. Bateman is handling the case for the U.S. Attorney’s Office.
Sumter Women Convicted of Healthcare Fraud for Over-Charging Government by Millions of DollarsRead the Press Release
Columbia, SC – United States Attorney Sherri A. Lydon announced today that Angela Breitweiser Keith, age 53, and Ann Davis Eldridge, age 58, both of Sumter, South Carolina, pleaded guilty in federal court to one count of false statements to defraud Medicaid.
Evidence presented to the court showed that Keith and Eldridge were executives of the South Carolina Early Autism Project (SCEAP). SCEAP provided behavioral health and education solutions for children and young adults, particularly those diagnosed with autism. SCEAP began providing Applied Behavior Analysis (ABA) services for children with autism in 2003, becoming the number one biller in the country for ABA services by 2015. SCEAP overcharged Medicaid and TRICARE (military-affiliated insurance) millions of dollars by inflating billing records and charging the government for services it did not provide to clients.
SCEAP employees reported to the government that they were pressured to exaggerate the amount of time they spent delivering services to the clients. Company emails indicated that SCEAP encouraged employees to unlawfully bill for time while waiting in driveways, travelling to and from servicing the clients, and even while sitting in restaurants. The employees also indicated that they had required billing goals they had to meet to qualify for job benefits and/or bonuses. These bonuses included gift cards and company-expensed vacations.
Ann Eldridge was a co-founder of SCEAP and Angela Breitweiser Keith worked at the SCEAP since its inception. In December 2012, Eldridge and her partner sold SCEAP to a company called Chancelight for over $18 million. Eldridge and Keith remained with the company, continuing in leadership roles in South Carolina. Chancelight engaged Eldridge to promote the SCEAP system to other Chancelight franchises in the Southeast, and promoted Keith to Senior Vice President of Data Reporting and Analysis.
In 2018, SCEAP/Chancelight repaid the government nearly $9 million for overbilling Medicaid and TRICARE in a civil settlement. Sentencing in the case has not yet been scheduled, but in a plea agreement filed with the court, both Keith and Eldridge have agreed to serve a 12-month federal prison sentence for their role in the fraud.
“We are proud of the excellent work of all the agencies involved,” said U.S. Attorney Lydon. “We take seriously our mission to protect those that are the most vulnerable to this kind of fraud and abuse. These prosecutions, combined with our civil recovery, should serve as a warning to those who seek to unlawfully enrich themselves by stealing from Medicaid or TRICARE and denying services to those with dire needs and those who have bravely served our nation.“
"These guilty pleas are the product of a thorough investigation and demonstrate the commitment of the Defense Criminal Investigative Service (DCIS) and our law enforcement partners to hold dishonest medical service providers accountable when they submit false bills and divert taxpayer funds," said Special Agent in Charge Robert E. Craig, Jr., DCIS Mid-Atlantic Field Office. "DCIS will continue to protect the integrity of the Department of Defense by rooting out fraud, waste, and abuse that negatively impacts critical programs such as TRICARE."
South Carolina Attorney General Alan Wilson stated, “The positive outcome of this case is an example of how valuable it can be for multiple agencies to pool their talents and resources in order to combat fraud. These individuals pleading guilty took advantage of taxpayers’ dollars at the expense of our Medicaid population, some of our most vulnerable. The people of South Carolina deserve better than this, and these convictions show that this behavior will not be tolerated in our state.”
The investigation was conducted by members of the Department of Health and Human Services, Office of Inspector General; the Department of Defense, Office of Inspector General; and the South Carolina Attorney General’s Office. The case is being prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
#####
Suboxone Clinic Owner Sentenced to More than a Year in Prison for Unlawfully Dispensing Prescription Drugs and Defrauding HighmarkRead the Press Release
PITTSBURGH, PA. - A suburban Pittsburgh resident has been sentenced in federal court to 15 months’ imprisonment followed by three years of supervised release and ordered to pay $4,845.24 in restitution on her conviction of unlawfully distributing controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Terri C. Brown, 53, of Morrow Road, Pittsburgh, PA 15241.
According to information presented to the court, Brown owned and operated Cherry Way, a Suboxone clinic, located in Bridgeville, PA. Her co-defendant,Mark Foster was the medical director at Cherry Way. Brown and Foster conspired together to create and submit unlawful prescriptions for Suboxone, Adderall and Percocet, and then unlawfully dispensed those controlled substances to Brown and to other persons. Brown also plead guilty to a charge of health care fraud for allegedly submitting fraudulent claims to Highmark through Cherry Way, for payments to cover the costs of the unlawfully prescribed Suboxone, Adderall and Percocet.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
The investigation leading to the filing of charges in these cases was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic. This unit has investigated and prosecuted more corrupt health care professionals than any other U.S. Attorney’s Office in the country.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
Statement from U.S. Attorney Trent Shores on Justice Department’s Success in Religious Liberty CasesRead the Press Release
U.S. Attorney Trent Shores shared his response today after the Department of Justice announced that two federal courts had handed down decisions protecting religious liberty, agreeing with the positions taken by the Department of Justice.
U.S. Attorney Shores stated, "I am proud to see the Department of Justice defending religious liberty in courts across America. Under the Religious Land Use and Institutionalized Persons Act, the Justice Department can file a civil action in court when religious groups are discriminated against in zoning laws. As the decisions in these cases show, this law is an important tool to protect the rights of religious groups. Freedom of religion is and always has been a core American principle. Whether prosecuting persons for threats against houses of worship or defending people of faith from unjust discrimination, my office stands ready to defend religious liberty."
See Department of Justice release here.
St. Roberts Man Sentenced for Stealing Timber from the Mark Twain National ParkRead the Press Release
St. Louis – Richard McKinnon, 38, of St. Roberts, Missouri, was sentenced to 18 months in prison on Thursday for theft of Government property. He appeared in federal court before U.S. District Judge Stephen Limbaugh.
According to court documents, between September of 2016 and December of 2016, McKinnon and his co-defendants, Dale Connour and Delmar Connour felled walnut trees located on federal land, from the Mark Twain National Forest in Laclede County and Pulaski County. They removed at least 39 trees without authorization from the Mark Twain National Forest and then sold the stolen timber at a walnut sawmill located in Texas County, Missouri. McKinnon and the Connours damaged at least 21 trees as a result of driving prohibited vehicles onto restricted areas of the Forest in order to cut down and remove the walnut trees. The total estimated value of the National Forest timber and the cost of rehabilitation to Nation Forest land was $35,862.50.
The case was investigated by the Department of Agriculture Forest Service. Assistant U.S. Attorney Gwen Carroll is handling the case for the U.S. Attorney’s Office.
Springville Bank Robber Sentenced to Five Years in Federal PrisonRead the Press Release
A Monticello man who robbed a bank in Springville last year was sentenced today to five years in federal prison. Joseph Jay Kripner, age 46, received the prison term after an August 21, 2018 guilty plea to one count of bank robbery.
On June 1, 2018, which was Kripner’s birthday, Kripner robbed the Security State Bank in Springville, Iowa. During the robbery, he displayed what appeared to be a gun to a teller and told her not to make him point the gun at her. The teller provided Kripner with $3,988 in cash in a plastic shopping bag and he then fled the scene. With the help of the “Crimestoppers” tip line, law enforcement officers later compared photographs of Kripner on his Facebook page and prior booking photographs with surveillance camera footage from the bank. The booking photographs showed that Kripner has a distinctive tattoo on the right side of his neck, depicting red lips with the word “Always” written above the lips and the word “Loved” written below the lips.
Kripner fled to Colorado after robbing the bank. On June 18, 2018, National Park Service Rangers arrested Kripner in the Rocky Mountain National Park. Kripner was found near the same car he used in the bank robbery, and the Park Rangers discovered $589.36 in cash, marijuana, live ammunition, and the pellet gun Kripner used in the robbery.
Kripner was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Kripner was sentenced to 60 months’ imprisonment. He was ordered to make $3,988 in restitution to the bank. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Kripner is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Linn County Sheriff’s Office, the Federal Bureau of Investigation, and the Rocky Mountain National Park Rangers.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 18-CR-67-LTS (N.D. Iowa), 18-MJ-204-CJW (N.D. Iowa) and 18-MJ-1111-NYW (D. Colo.).
Follow us on Twitter @USAO_NDIA.
Southern District of Georgia continues crackdown on healthcare fraudRead the Press Release
AUGUSTA, Ga: A Martinez man has been sentenced to federal prison and ordered to pay nearly $1.5 million in restitution for defrauding government healthcare and disability programs.
Jonathan Duane Austin, 32, of Martinez, Ga., was sentenced to 30 months in federal prison and ordered to pay $1,473,377.51 in restitution by U.S. District Court Chief Judge J. Randal Hall, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
At the completion of Austin’s sentence, he will be subject to an additional term of supervised release. There is no parole in the federal system.
According to court documents in the case, Austin admitted to defrauding Medicare and Tricare for nearly three years by submitting false claims for prescription reimbursements totaling $1,450,000, and to defrauding the Social Security Administration by providing forged documents to falsely claim disability status.
The Austin case represents one of the largest beneficiary-created fraud schemes ever prosecuted in the Southern District.
These Austin case was investigated by the Defense Criminal Investigative Service (DCIS), the Department of Health and Human Services (HHS), and the Social Security Administration.
The Health Care Fraud Task Force aggressively prosecutes health care fraud and abuse. The Task Force’s effort is reflected in other recent plea agreements and sentences, including:
Maryanne Hudson, 49, of Millen, Ga., was sentenced to 13 months in federal prison by U.S. District Court R. Stan Baker for fraudulently billing Medicare for durable medical equipment that a physician had not actually ordered as reasonable and necessary; and,
Paula Padgett, 49, of Brunswick, Ga., was sentenced to probation for submitting false requests for compensation to the United States Department of Labor, Office of Workers’ Compensation Programs, by U.S. District Court Lisa Godbey Wood.
These cases were investigated by HHS, the Federal Bureau of Investigation (FBI), the Department of Labor (DOL), and the U.S. Attorney’s Office.
“These types of fraud erode faith in the health care system, and we will not tolerate it,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Individuals who engage in schemes to steal from taxpayers hurt those with real health problems and the systems in place to address those needs.”
“The Austin sentencing demonstrates the commitment of DCIS to protect the integrity of the DoD health care program (TRICARE) from fraud and abuse,” said Special Agent in Charge John F. Khin, DCIS Southeast Field Office. “DCIS investigations ensure taxpayer money is properly used to support our warfighter, retirees and their family members.”
“The Social Security OIG will continue to maintain our strong partnerships with other federal, state, and local agencies as we combat fraud. Our responsibility in protecting taxpayers’ dollars doesn’t end with Social Security benefits only, “said Gail S. Ennis, Inspector General of the Social Security Administration. “We will continue to work closely with our law enforcement partners to detect and prevent benefit fraud across the country.”
“This sentencing reaffirms our commitment to protecting patients from the dangers of prescription drug fraud,” said Special Agent in Charge Derrick L. Jackson, of the HHS Office of Inspector General. "Our watchdog agency will continue to work closely with our law enforcement partners to root out waste, fraud and abuse."
“When Hudson fraudulently billed Medicare she not only cheated taxpayers, she also hurt those who rely on the government program for their healthcare needs,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI makes it a top priority to protect government programs like Medicare to ensure that only those who need assistance get it.”
“Paula Padgett engaged in a scheme to defraud the U.S. Department of Labor’s (DOL) Federal Employees’ Compensation Act program by submitting fraudulent claims to the Office of Workers’ Compensation Programs (OWCP) for the reimbursement of nonexistent travel expenses for medical treatment. We will continue to work with OWCP and our law enforcement partners to protect the integrity of DOL’s benefit programs,” said Rafiq Ahmad, Special Agent in Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General.
Assistant United States Attorney J. Thomas Clarkson prosecuted these cases for the United States.
Shreveport man found guilty for role in check fraud scheme that resulted in nearly $200,000 stolenRead the Press Release
SHREVEPORT, La. – A federal jury found Carlos A. Spann guilty Thursday night for his role in a fraudulent check scheme resulting in the theft of nearly $200,000, U.S. Attorney David C. Joseph announced. The jury deliberated for approximately one hour before finding Spann guilty of one count of conspiracy to commit bank and wire fraud and two counts of wire fraud.
Evidence admitted at trial showed that Spann, 41, Phelix K. Williams, 28, and Anthony E. Johnson, 23, all of Shreveport, conspired to cash counterfeit checks using fraudulent identities at banks and retail establishments throughout Louisiana. During the conspiracy, the co-defendants negotiated more than 100 counterfeit checks resulting in nearly $200,000 in illegally obtained proceeds.
United States District Judge S. Maurice Hicks Jr. presided over the trial that started Monday and ended Thursday. Hicks set Spann’s sentencing for May 23, 2019.
Johnson pleaded guilty on January 17, 2019 to one count of conspiracy and two counts of bank fraud. Johnson is scheduled to be sentenced May 1, 2019. Williams pleaded guilty Monday to one count of conspiracy, 12 counts of bank fraud and two counts of wire fraud. Williams is scheduled to be sentenced May 30, 2019. The defendants face up to 30 years in prison, five years supervised release and a $1 million fine.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Tiffany Fields and First Assistant U.S. Attorney Alexander C. Van Hook prosecuted the case.
Scranton Man Guilty of Unlawfully Importing Synthetic Cannabinoids from ChinaRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that John Verkitus, age 56, of Scranton, Pennsylvania, pleaded guilty before U.S. District Court Judge Malachy E. Mannion to unlawfully importing synthetic cannabinoids from China between November 2015 and September 2016.
According to United States Attorney David J. Freed, Verkitus admitted to ordering via the internet and receiving parcels containing synthetic cannabinoids on a monthly basis. In September 2016, postal inspectors intercepted two parcels from Hong Kong and Guangdong, China, intended for Verkitus, and a subsequent court-authorized search revealed that the parcels contained synthetic cannabinoids. The parcels were labeled as “plastic accessories” and “car tools kits” to disguise their true contents.
Judge Mannion ordered a presentence investigation to be completed. Sentencing will be scheduled at a later date.
The case was investigated by the Drug Enforcement Administration, the United States Postal Service, and Scranton Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
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. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The maximum penalty under federal law for this offense is 20 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Scranton Funeral Home Director Pleads Guilty to Tax EvasionRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Al T. Hughes, age 60, of Scranton, Pennsylvania, pleaded guilty on February 7, 2019 before United States District Court Judge James M. Munley to tax evasion.
According to United States Attorney, David J. Freed, Hughes admitted to diverting approximately $892,000 in corporate receipts to his personal benefit, and failed to report the diverted receipts as income on his federal tax returns. The resulting tax loss to the United States is approximately $231,000. Hughes also admitted that he began diverting corporate receipts in 2009 and continued through 2014, and that he cashed hundreds of customer checks, intended for payment of funeral home services, at various financial institutions, including a check cashing service in Scranton. Hughes diverted corporate receipts from four area funeral homes, including the Thomas J. Hughes Funeral Home, the Eagan-Hughes Funeral Home, the McGoff-Hughes Funeral Home, and the Davies & Jones Funeral Chapel.
The investigation was conducted by the Criminal Investigation Division of the Internal Revenue Service – Scranton Office. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under federal law for the crime of tax evasion is 5 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Sacramento Man Sentenced to 12 Years in Prison for Cocaine Trafficking & Gun PossessionRead the Press Release
SACRAMENTO, Calif. — Benjamin Macias, 40, of Sacramento, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 12 years in prison for conspiring to distribute cocaine, distributing cocaine, possessing cocaine with the intent to distribute it, and being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, in 2014 and 2015, Macias supplied Sergio Ambriz, 29, of Sacramento, with cocaine. On four occasions, Ambriz sold this cocaine to an undercover agent in Sacramento and El Dorado Counties. Agents planned to arrest Macias and Ambriz during a fifth transaction on June 9, 2015. Shortly before they could do so, Macias sped away from the scene at about 90 miles per hour. Helicopter video showed that, in his attempt to escape, he drove through an intersection, appeared to fail to stop at a red light, and drove erratically as he passed other cars on westbound Highway 50 near the El Dorado Hills Town Center.
After they apprehended him in Gold Run, agents searched Macias’s car. In the glove compartment, they found a Ruger 9 mm pistol loaded with hollow-point bullets; they also found more than one pound of cocaine in the trunk. On the same day, agents searched Macias’s Sacramento home and found ammunition, a 35-round magazine, and more cocaine.
Macias has a record of other criminal convictions stretching back to 1996. He was on pretrial release for California state charges relating to firearm and marijuana possession when he committed the crimes of which he was convicted in this case.
Ambriz previously pleaded guilty to using a cellphone to facilitate a drug trafficking offense and was sentenced on November 4, 2016, to four years in prison.
This case is the product of an investigation by the Drug Enforcement Administration, the El Dorado County Sheriff’s Department, the El Dorado County District Attorney’s Office, the California Highway Patrol, the California Department of Corrections and Rehabilitation, and the Sacramento County Sheriff’s Department. Assistant U.S. Attorneys Paul A. Hemesath and Amanda Beck prosecuted the case.
Rockford Man Arrested for Aiming a Laser Pointer at an AircraftRead the Press Release
ROCKFORD — A Rockford man was arrested today on a charge of aiming the beam of a laser pointer at an aircraft and at the flight path of an aircraft on Dec. 6, 2018, in Rockford.
BRENTON WELLS, 45, was indicted on the charge by a federal grand jury on Feb. 5, 2019. Wells will appear for arraignment today at 3:30 p.m. in federal court in Rockford, before U.S. Magistrate Judge Iain D. Johnston.
The charge carries a maximum potential penalty of up to five years in prison and a fine of up to $250,000. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The arrest was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Dan O’Shea, Rockford Chief of Police.
The public is reminded that an indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Ridgeland Man Pleads Guilty to Federal Narcotics ChargesRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Demetrius Dwayne Swinton, a/k/a “Million Dolla Meat,” age 31, of Ridgeland, South Carolina, has entered a guilty plea in federal court in Charleston to conspiracy to possess with intent to distribute and to distribute 5 kilograms or more of cocaine. United States District Judge Richard M. Gergel of Charleston accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Swinton was the last of thirteen defendants to plead guilty to their involvement in the drug conspiracy. Those who previously pled guilty to their involvement include Liz Ashante Christopher, Christopher Johnson, Travis Wiggins, Derrick Edwards, Johnita Anderson, David Grober, Boston Brown, Samuel Jones, Ernest Tyrone Fields, Devin Swinton, Ryan Walters, and Terrance Wallace. Defendants Demetrius Swinton, Christopher, Wiggins, Edwards, Anderson, Grober, Jones, Fields, and Walters each face up to life imprisonment in federal custody. Demetrius Swinton also agreed to forfeit $500,000, two vehicles, and several pieces of jewelry. Defendants Devin Swinton, Johnson, and Brown each face up to forty years in federal custody for their involvement in the conspiracy, while Wallace faces up to twenty years in federal custody for his involvement. Defendants Wiggins and Edwards both also pled guilty to possession of firearms in furtherance of drug trafficking, which carries a minimum of five years in federal custody to be served consecutive to any other sentence received.
Evidence presented to the court established that Demetrius Swinton was the leader of a cocaine trafficking organization that was responsible for bringing a large volume of cocaine into South Carolina, primarily into Beaufort and Jasper counties. During the course of the investigation, agents established that Swinton was receiving multiple kilograms of cocaine at a time from a source of supply in Atlanta and that he used a number of associates to assist in both the distribution of drugs and the collection of drug proceeds. During the course of the investigation, agents seized over 47 kilograms of cocaine, 782 grams of crack cocaine, 6 kilograms of marijuana, 97 grams of heroin, 10 firearms, 5 vehicles, over $50,000 worth of jewelry, and over $68,000 cash.
United States Attorney Lydon stated, “With these convictions, we are able to bring a long-overdue sense of justice to the communities that have been so greatly affected by drug trafficking and violence. We truly appreciate the efforts of our federal, state and local law enforcement agencies in working together to hold so many people accountable for such serious crimes.”
"Demetrius Swinton’s criminal activity had been an ongoing problem for the 14th Circuit," added Fourteenth Circuit Solicitor Duffie Stone. "It's fortunate that we've had this tremendous partnership with the U.S. Attorney's Office in place for a number of years now. It has been invaluable in our efforts to get dangerous people like Swinton off the streets."
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, "The Demetrius Swinton violent drug trafficking organization plagued communities in South Carolina for far too long. This investigation clearly validates the correlation between drug trafficking and violent crime. The guilty pleas of Swinton and his co-defendants underscore the seamless law enforcement collaboration between DEA, the Beaufort, Hampton, and Jasper County Sheriff's Offices, the Fourteenth Circuit Solicitor’s Office and the subsequent prosecution by the U.S. Attorney's Office."
“Drugs wreak havoc on communities, and this case is no different,” said John Eisert, Acting Special Agent in Charge of U.S. Immigration and Custom’s Enforcement’s Homeland Security Investigations Charlotte. “With drugs comes violence, and I am happy to say several South Carolina cities are now safer due to the investigative efforts of HSI and its partners.”
The case was investigated by agents of the Drug Enforcement Administration, Homeland Security Investigations, Beaufort County Sheriff’s Office, Hampton County Sheriff’s Office, Jasper County Sheriff’s Office, Charleston County Sheriff’s Office, Berkeley County Sheriff’s Office, City of Charleston Police Department, Summerville Police Department, North Charleston Police Department, Mount Pleasant Police Department, South Carolina Highway Patrol, and the South Carolina National Guard. Assistant United States Attorney Nick Bianchi of the Charleston Office and Special Assistant United States Attorney Carra Henderson of the Fourteenth Circuit Solicitor’s Office are prosecuting the case.
#####
Raleigh Drug Dealers Receive More Than 15 Years Each for Their Roles in a Drug Trafficking OrganizationRead the Press Release
NEW BERN — United States Attorney Robert J. Higdon, Jr. announces that United States District Judge Louise Flanagan sentenced William ISAAC DANIELS, 38, of Wake County to 211 months’ imprisonment, followed by 5 years of supervised release and BOB BIONGO, 31, of Wake County to 180 months’ imprisonment, followed by 10 years of supervised release
On August 24, 2018, DANIELS plead guilty to conspiracy to distribute and possess with the intent to distribute 28 grams or more of cocaine base (crack) and distribution of a quantity of cocaine.
On August 16, 2018, BIONGO plead guilty to conspiracy to distribute with intent to distribute two hundred eighty (280) grams or more of a mixture and substance containing a detectable amount of cocaine base, 3-counts of distribute and possess with intent to distribute a quantity of detectable amount of cocaine base, aiding and abetting, and to possess with intent to distribute two hundred eighty (280) grams or more of a mixture and substance containing a detectable amount of cocaine base (crack).
Between May and June 2017, the Raleigh Career Criminal Unit and the Federal Bureau of Investigation conducted three controlled purchases from BIONGO. The first purchase occurred within a 1/10 of a mile of Mary Phillips High School in Raleigh.
Between January and February 2017, the Raleigh Career Criminal Unit and the Federal Bureau of Investigation conducted two controlled purchases from DANIELS. One of the deals occurred in the bathroom of a local Raleigh restaurant in the middle of the day for approximately an ounce of crack cocaine.
On June 15, 2017, law enforcement served a search warrant on BIONGO’S residence in Raleigh. Law enforcement found more than 1 kilogram of crack cocaine, more than $7,000 and a cocaine press. BIONGO was arrested following a short foot chase.
On January 23, 2018, DANIELS was arrested at a residence in Franklin County. DANIELS was able to destroy a quantity of cocaine base before the agents were able to arrest him.
DANIELS was involved in distributing approximately 900 grams of cocaine base (crack) between November 2016 and the time of his arrest. BIONGO was involved in distributing more than a kilogram of crack cocaine. BIONGO was a validated gang member and had a North Carolina State prior conviction for possession with intent to sell and deliver a cocaine as a habitual felon.
This case was brought using the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Federal Bureau of Investigation Safe Streets Task Force and the Raleigh Police Department Career Criminal Unit. Assistant United States Attorney Timothy Severo prosecuted the case.
Priority target of Savannah law enforcement pleads guilty to felony firearms possessionRead the Press Release
SAVANNAH, GA: A high priority target of the Savannah Police Department has pled guilty to a federal firearms possession charge and now awaits sentencing.
Frenchy Gamil Hilliard, 32, of Savannah, Ga., pled guilty to being a Felon in Possession of a Firearm, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a potential sentence of up to 10 years in prison, and there is no parole in the federal prison system.
According to information provided in court filings and in open court, a detective from the Savannah Police Department Special Investigations Unit saw Hilliard, a known convicted felon and convicted drug dealer, with a handgun with an extended magazine. The detective saw Hilliard place the gun in his pocket, get into a vehicle and drive away when officers ordered him out of the car. After crashing the vehicle, Hilliard attempted to flee on foot and was captured.
Officers searching the area found the pistol, a black Glock 43 .40 caliber with extended magazine with one of its serial numbers obliterated. The investigation determined the pistol had been stolen, and evidence found on Hilliard’s phone showed him photographed brandishing the weapon more than a year before the arrest. Tests also confirmed Hilliard’s DNA was on the stolen pistol and magazine.
The case was investigated by the Savannah Police Department Special Investigations Unit, the federal bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Attorney’s Office for the Southern District of Georgia.
“Law-abiding residents of our communities understandably are frustrated when they see armed criminals repeatedly violating the law and returning to their neighborhoods,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Through diligent enforcement of federal statutes that can take these criminals off the street, we are determined to restore safety and security to our communities.”
“ATF considers Savannah Police Department a critical partner in its long-term mission of removing violent criminals from our communities,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the bureau of Alcohol, Tobacco, Firearms and Explosives.
“Activity like this will not be tolerated in Savannah,” said Savannah Police Chief Roy Minter. “We are committed to removing illegal firearms and those in possession of these weapons from this city.”
The case is being prosecuted by Assistant United States Attorneys E. Greg Gilluly Jr. and Frank Pennington.
Prince George’s County Felon Sentenced to 10 Years in Federal Prison for Distribution of Fentanyl and other Opioids and for Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Tyrell Rashad Cauthern, age 30, of Fort Washington, Maryland, to 10 years in federal prison, followed by four years of supervised release, for distribution of fentanyl, crack cocaine, and other drugs, and for possession of a firearm in furtherance of drug trafficking. Judge Grimm also found that Cauthern committed those crimes while on supervised release for a 2011 federal drug trafficking conviction, revoked Cauthern’s supervised release, and sentenced him to 12 months in prison to be served concurrent to the 10 year sentence. The sentences were imposed on February 6, 2018.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
U.S. Attorney Robert K. Hur stated, “We are determined to reduce the number of drug-related deaths in Maryland, especially opioid overdose deaths. We’re particularly focusing our attention on those who sell fentanyl, the drug that is killing the most of our citizens, and drug dealers who use guns. Drug traffickers are on notice that guns and drugs - especially fentanyl - increase their odds of federal prosecution, resulting in long federal sentences without the possibility of parole.”
According to his guilty plea, on October 17, 2017, Prince George’s County Police officers executed a search warrant at Cauthern’s residence and his car. Officers recovered a 9 mm handgun loaded with six rounds of ammunition, $11,368 in cash, crack cocaine, fentanyl, two of Cauthern’s cell phones, and drug paraphernalia. The drugs were concealed in three containers with false bottoms – an Ajax bottle, Pepsi bottle and Scotch Guard can. In total, officers seized 75 bags containing 175 grams of fentanyl and 14 bags containing 55 grams of crack cocaine. During the search, officers also located Cauthern’s six-year-old daughter in the residence.
In one of Cauthern’s phones, officers found text messages in which Cauthern used coded language to facilitate drug transactions. Cauthern was also prohibited from possessing a firearm or ammunition as a result of his previous felony conviction. Cauthern will forfeit the cash and gun seized during the search on October 17, 2017.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Gregory D. Bernstein, who prosecuted the case.
# # #
Pittsburgh Man Sentenced to Prison on Tax Fraud and Social Security Fraud ChargesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 9 months’ imprisonment followed by 2 years of supervised release on his conviction for violating federal tax and social security fraud laws, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Robert Alan Seth, Sr., 58.
According to information presented to the court, Seth filed a false U.S. individual income tax return for the 2013 tax year by failing to report income from his general contracting business, RAS & Sons. As part of his guilty plea, Seth accepted responsibility for filing a false individual tax return for the 2012 tax year. Seth also accepted responsibility for failing to file personal income tax returns for 2008 through 2011 and 2013, as well as corporate income tax returns for 2008 through 2014 for RAS & Sons. As part of his sentence, Seth was ordered to pay restitution for back taxes of $173,390.00, plus interest, to the Internal Revenue Service.
Additionally, between January 2009 and July 2017, Seth fraudulently collected Social Security Disability Insurance benefits for himself and his minor child totaling $248,145.90, by failing to report his employment activity as the owner and operator of RAS & Sons general contracting business. As part of his sentence, Seth was ordered to pay restitution of $248,145.90 to the Social Security Administration.
"Robert Seth committed an elaborate double fraud on the government," said U.S. Attorney Brady. "By stealing hundreds of thousands of dollars from the Social Security Administration and failing to report significant income from a variety of businesses, Seth was in effect stealing from the hard-working, honest taxpayers of western Pennsylvania. My office is committed to prosecuting criminals like Seth to the fullest extent of the law."
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
United States Attorney Brady commended the Internal Revenue Service – Criminal Investigation and the Social Security Administration – Office of Inspector General for the investigation leading to the successful prosecution of Seth.
Philadelphia Man Pleads Guilty to Methamphetamine Trafficking and Illegal Gun PossessionRead the Press Release
Jackson, Miss. – Dijon Jamese Seales a/k/a “DJ,” 28, of Philadelphia, pled guilty today before U.S. Chief District Judge Daniel P. Jordan, III., to possession with intent to distribute 5 grams or more of methamphetamine and possession of firearms in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans.
On January 22, 2018, members of the U.S. Marshal’s Gulf Coast Regional Fugitive Task Force went to arrest Seales pursuant to an arrest warrant issued out of the Northern District of Texas for violating pretrial release conditions in an unrelated case. While executing the warrant, task force members found 16.9 grams of methamphetamine on Seales’ person which the defendant intended to distribute. Additionally, in furtherance of his drug trafficking offense, Seales was found to be in possession of a Glock 43 pistol and a Ruger AR-556 assault-type rifle with an assortment of gun accessories, including a bump stock.
“Methamphetamine has devastated countless communities due to the dramatic health and public safety consequences that typically accompany its introduction into an area,” said Special Agent in Charge of Homeland Security Investigations New Orleans Jere T. Miles. “Today’s guilty plea stems from an extensive HSI effort with its federal, state and local partners to dismantle a drug trafficking organization that decimated parts of Mississippi and Alabama with methamphetamine smuggled into the U.S. from Mexico. This operation is a testament to the seamless partnership between HSI, the Mississippi Bureau of Narcotics and the Drug Enforcement Administration, and we are thankful for their assistance as well as the U.S. Attorneys’ to improve the lives of law-abiding residents throughout Mississippi and Alabama.”
Seales was charged in a three count indictment that was filed on March 7, 2018. He will be sentenced by Judge Jordan on May 10, 2019, at 9:00am and faces a maximum penalty of life in prison and up to a $5,000,000 fine.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This OCDETF case is a result of a joint investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration and the Mississippi Bureau of Narcotics. Assisting agencies include the United States Marshal’s Service, the Gulf Coast Regional Fugitive Task Force, Philadelphia Police Department, Neshoba County Sheriff’s Department, Neshoba County District Attorney’s Office, Scott County Sheriff’s Office, Flowood Police Department, Rankin County Sheriff’s Department, Hinds County Sheriff’s Department, Carthage Police Department, Union Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisville Police Department, Mississippi Highway Patrol, and United States Attorney=s Office Southern District of Mississippi. Assistant U.S. Attorneys Erin Chalk and Drew Eichner are prosecuting the case.
Pass Christian Man Sentenced to over 24 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
Gulfport, Miss. – Randall Galloway, 31, of Pass Christian, Mississippi, was sentenced yesterday by U.S. District Judge Sul Ozerden to serve 294 months in federal prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Assistant Special Agent in Charge Derryle Smith with the Drug Enforcement Administration (DEA). Galloway was also ordered to pay a $10,000 fine.
An investigation by the DEA revealed that from 2014 through 2015, Galloway received approximately 2.3 kilograms of methamphetamine via FedEx. Galloway was responsible for distributing the methamphetamine in the Gulfport area. On two occasions, DEA agents utilized a confidential informant to purchase methamphetamine from Galloway. On October 19, 2018, Galloway pled guilty to possession with intent to distribute methamphetamine.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Shundral H. Cole.
Oxford County Man Sentenced to Five Years for ArsonRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Daniel Thompson, a/k/a “Daniel Walker,” 21, formerly of South Paris, Maine, was sentenced today in U.S. District Court by Judge Nancy Torresen to five years in prison and three years of supervised release for maliciously damaging property used in interstate commerce by fire. He was also ordered to pay over $184,000 in restitution. Thompson pleaded guilty on August 10, 2018.
According to court records, on June 5, 2017, the defendant broke into and, using gasoline, set a fire inside a building owned by the Dead River Company, in South Paris, that was used to store files and equipment. Dead River is a commercial petroleum supplier engaged in interstate commerce. It took several hours for firefighters to contain the blaze and the building was destroyed.
The investigation was conducted by the Maine State Fire Marshal’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Owner of Janitorial Supply Company Admits Defrauding Customer, Failing to Pay TaxesRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man who owned a janitorial supply company admitted today to submitting fraudulent bills to a customer and failing to pay taxes on the illicit proceeds of his scheme, U.S. Attorney Craig Carpenito announced.
Mitchell Bleicher, 52, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count each of wire fraud, money laundering, and income tax evasion.
According to documents filed in this case and statements made in court:
Bleicher was the owner and operator of Allied Materials Inc. (Allied), a janitorial supply company in Berlin, New Jersey. Allied sold janitorial and cleaning supplies, office and break room supplies, food service items, safety equipment, and business printing and imprinted items.
Bleicher admitted that between 2009 and April 2018, he submitted invoices to Company 1, headquartered in Cherry Hill, New Jersey, that falsely listed products that Allied purportedly delivered to Company 1, when, in fact, Allied had not delivered those products. Allied’s fraudulent invoices also inflated the number of products that were actually delivered. As part of his scheme, and to ensure that his fraudulent invoices were accepted, Bleicher admitted that he paid a contractor working in the facilities department of Company 1 who was responsible for the janitorial supplies. Once that contractor left, Bleicher continued his fraudulent activity with the contractor’s replacement and rewarded him by buying him expensive dinners, taking him to professional sports games like the Philadelphia 76ers, and providing him with expensive wines. Later, Bleicher recruited an employee of Company 1 and gave her the fraudulent invoices to submit for payment.
Bleicher admitted that he used the money he got from the scheme – $1,917,381 – on numerous personal expenditures, such as Rolex watches, two Rolls Royce automobiles, two Subaru automobiles, motorcycles, home renovations and college tuition for his children.
Bleicher acknowledged that he failed to pay taxes on the money he received through fraud. Although he filed income tax returns with the IRS for 2011 through 2017, Bleicher did not report the money that he fraudulently obtained from Company 1. By not reporting that additional taxable income, Bleicher admitted that he defrauded the IRS of $578,902 in income tax revenue.
The count of wire fraud to which Bleicher pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of money laundering carries a maximum penalty of 10 years in prison and a fine of $250,000. The count of income tax evasion carries a maximum potential penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for May 17, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Michael T. Harpster in Philadelphia; and special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Robert E. Welsh Esq., Philadelphia
Oklahoma City Man Sentenced for CyberstalkingRead the Press Release
United States Attorney Joe Kelly announced that Kevin W. McRae, age 48, was sentenced in federal court today in Omaha, Nebraska, for one count of cyberstalking. The Honorable Robert F. Rossiter, Jr. sentenced McRae to 5 months in prison, ordered him to pay $4,590 in expenses to the court, and three years of supervised release after he is released from prison.
McRae, as a member of the U.S. Air Force, had an extra-marital relationship with another member of the Air Force. When the relationship ended in 2015, for a period of approximately 10 months, McRae stalked the woman on the internet by posting sexually explicit photos of her on several websites. He retired from the Air Force prior to being prosecuted for this offense.
The case was investigated by the Federal Bureau of Investigation.
Ohio County residents admit to their roles in cocaine and heroin distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Two Wheeling residents have admitted to their roles in a cocaine and heroin distribution operation that spanned two states, United States Attorney Bill Powell announced.
Michael J. Kennen, age 35, and Amanda R. Kennen, age 35, each pled guilty to one count of “Aiding and Abetting the Distribution of Cocaine Base within 1,000 feet of a Protected Location.” They admitted to selling cocaine near Wilson Playground in June 2018 in Ohio County.
Both are facing no less than one year and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The investigation was led by the Ohio County Drug & Violent Crimes Task Force, a HIDTA-funded initiative. The task force is comprised of the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department. Those assisting in the arrests are the United States Marshal Service; Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Martins Ferry, Ohio Police Department; and the Columbus, Ohio Police Department.
U.S. Magistrate Judge James P. Mazzone presided.
North Texas Man Charged by Criminal Complaint with Conspiring to Provide Material Support to a Foreign Terrorist OrganizationRead the Press Release
A north Texas man was charged today with conspiring to provide material support to a foreign terrorist organization, announced Assistant Attorney General for National Security John C. Demers and U.S. Attorney Erin Nealy Cox.
Michael Kyle Sewell, 18, was charged Friday morning by criminal complaint in Fort Worth, Texas with conspiring to provide material support and resources to Lashkar-e-Taiba, a Pakistani-based foreign terrorist organization.
As set forth in the complaint, Sewell recruited an individual, identified in the complaint as coconspirator 1, to join Lashkar-e-Taiba (LeT), a designated foreign terrorist organization. Sewell met the coconspirator online and encouraged him to join LeT.
Sewell provided the coconspirator with contact information for an individual he believed could facilitate the coconspirator’s travel to join the organization. Unbeknownst to Sewel and the coconspirator, the facilitator was an undercover FBI agent.
Sewell coached the coconspirator about what to say to convince the facilitator that he was sincere in his desire to fight for LeT. Sewell also contacted the facilitator to vouch for the coconspirator’s authenticity. Sewell told both the coconspirator and the facilitator that he would kill the coconspirator if he turned out to be a spy.
The coconspirator made contact with the facilitator and made arrangements with the facilitator to travel to Pakistan to join LeT.
“Sewell allegedly used social media to recruit and encourage an individual to travel overseas to join a foreign terrorist organization and conspired with that person to provide material support to that organization,” said Assistant Attorney General Demers. “The National Security Division is committed to hold accountable those who engage in this behavior.”
“We stay on constant alert for radicals plotting attacks targeting citizens of the United States, here or abroad,” said U.S. Attorney Nealy Cox. “Countering terrorist threats is our highest priority, and we will continue to work to stem the flow of foreign fighters abroad and bring justice to those who attempt to provide material support to foreign terror organizations. I would like to thank the FBI and our Joint Terrorism Task Force partners for all that they do to keep our communities safe.”
"The men and women of FBI Dallas along with our local, state, and federal partners will continue to work diligently against homegrown violent extremists who provide support to any foreign terrorist organization," said Eric K. Jackson, Special Agent-In-Charge of the FBI Dallas Division. "As threats are uncovered to the community we serve, the FBI and its partners must continue to ensure we are vigilant and determined to prevent any harm to this great nation."
The Federal Bureau of Investigation and its Joint Terrorism Task Force members, including the Arlington Police Department, the Fort Worth Police Department, the Tarrant County Sheriff’s Office, the Naval Criminal Investigation Service, the Department of Homeland Security, and the Texas Department of Public Safety, investigated the case.
Norman Seabrook, President of Correction Officers Benevolent Association, Sentenced to 58 Months in Prison for Accepting Bribes in Exchange for Investing Union Money in New York-Based Hedge FundRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that NORMAN SEABROOK, the former president of the Correction Officers’ Benevolent Association (“COBA”) was sentenced to 58 months in prison for his role in a bribery scheme in which he accepted a $60,000 bribe payment, and the promise of future bribe payments, in exchange for SEABROOK’s investment of millions of dollars of COBA money in a hedge fund. SEABROOK was found guilty of honest services fraud offenses on August 18, 2018, after a 10-day trial in Manhattan federal court. Today’s sentence was imposed by U.S. District Judge Alvin K. Hellerstein.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Tens of thousands of hardworking correction officers once looked to Norman Seabrook as their leader and champion. Seabrook now stands convicted of betraying them for a bag full of cash and the promise of more. His conduct resulted not simply in the membership’s loss of faith in its leader, but the loss of millions of dollars in retirement benefits due to union members. My Office has worked tirelessly with our law enforcement partners to hold Seabrook and those who conspired with him to account. Today’s sentence sends an important message to any other person in a position of power that no one is above the law, and that violating a sacred trust in return for a cash payoff will land you on the wrong side of a prison door.”
According to the allegations in the Indictment, Superseding Indictment, and Complaint, other filed documents, and the evidence at trial:
COBA is New York City’s largest correction officers union and the largest municipal jail union in the United States. COBA represents over 20,000 active and retired correction officers in New York City, including at Rikers Island. NORMAN SEABROOK, the defendant, was the president of COBA for over 20 years. SEABROOK wielded enormous power over the affairs of COBA, and was rarely questioned by his executive board, as he had the ability to affect their assignments, pay, and hours. SEABROOK’s control extended to the union’s finances, including the administration of its “Annuity Fund,” a retirement benefits program funded by the City of New York that invests more than $70 million for correction officers’ retirements.
Toward the end of 2013, on a trip to the Dominican Republic with, among others, Jona Rechnitz, a real estate businessman who is now a cooperating witness for the Government, SEABROOK told Rechnitz that he worked hard to invest COBA’s money and was not getting anything out of it, and it was time that “Norman Seabrook got paid.” Rechnitz was friendly with and had done business with Murray Huberfeld, a founder and part owner of Platinum Partners (“Platinum”), a Manhattan-based hedge fund that principally ran two funds. Rechnitz was aware that Platinum was looking to attract public and institutional investors – as opposed to its more typical investor set of high net-worth individuals – and told Huberfeld that SEABROOK would likely invest COBA money in Platinum if Huberfeld were willing to pay SEABROOK money on the side. Huberfeld agreed to the proposition, and Huberfeld worked out a formula in which SEABROOK would be paid a kickback of a portion of the profits from COBA’s investment that Huberfeld estimated would be between $100,000 and $150,000 per year.
SEABROOK then began investing COBA’s money, at first going through the motions of having Platinum make a pitch to COBA’s Annuity Fund board and having advisers conduct diligence. Those advisers included attorneys who wrote letters expressing concern that public pensions like COBA do not typically invest in higher-risk vehicles like hedge funds. SEABROOK concealed those letters from the other members of COBA’s Annuity Fund Board in order to secure their approval for the investment. In March 2014, COBA’s Annuity Fund made a $10 million investment in one of Platinum’s funds. In June 2014 – this time without running the investment by the COBA Board or seeking any approval – SEABROOK invested $5 million, or 40 percent, of COBA’s own assets in the same fund, money that had been set aside for use in the event of a union emergency. In August 2014, the Annuity Fund invested another $5 million in Platinum. By that point, COBA was the largest investor in that Platinum fund for all of 2014, and amounted to more than half of all incoming investments for the fund. At the same time, Platinum was experiencing significant redemptions by other investors.
Toward the end of 2014, SEABROOK wanted the first of his kickback payments, and demanded it from Rechnitz. Huberfeld told Rechnitz that the fund had not performed as well as expected, and that he could pay SEABROOK only $60,000. Rechnitz agreed to lay out the cash, and Huberfeld agreed to reimburse Rechnitz on Platinum’s behalf. Huberfeld suggested that to paper over the reimbursement, Rechnitz invoice Platinum for a number of Rechnitz’s courtside tickets to New York Knicks games, in the amount of $60,000, and Platinum would then cut a check to Rechnitz.
Rechnitz paid SEABROOK the first $60,000 kickback on December 11, 2014. Before meeting SEABROOK that evening, Rechnitz went to one of SEABROOK’s favorite stores, Salvatore Ferragamo on Fifth Avenue in Manhattan, and bought an expensive men’s handbag for SEABROOK. Rechnitz put the money in the bag, and met SEABROOK a few blocks away in SEABROOK’s COBA sport utility vehicle with tinted windows, where he handed SEABROOK the bag. Rechnitz and SEABROOK had dinner with two other persons nearby, then attended a Torah dedication ceremony nearby, after which SEABROOK left Manhattan. These events have been corroborated by, among other things, phone records, emails, license plate reader records, surveillance footage, and a receipt from Salvatore Ferragamo. On the same day, Rechnitz’s assistant prepared a $60,000 invoice to Platinum for Knicks tickets, which Rechnitz forwarded by email to Huberfeld. Three days later, Platinum paid Rechnitz by check.
Huberfeld, through another associate, Jeremy Reichberg, continued to lobby SEABROOK for more money in 2015. However, after a lawsuit filed by a former COBA board member referred to the Platinum investments, and the U.S. Attorney’s Office grand jury investigation resulted in subpoenas to Platinum and COBA in May 2015, no further investments were made. As part of the lawsuit, SEABROOK filed a false affidavit in which he claimed that COBA’s board members had authorized his unilateral and unauthorized June 2014 transfer of $5 million of union funds to Platinum. He also claimed that he himself had paid for his March 2014 trip to Israel when it had, in fact, been paid for by Rechnitz. This lie under oath served to hide SEABROOK’s connection to the Platinum Partners investment and the bribe arrangement behind it.
On May 25, 2018, Huberfeld pled guilty to one count of conspiracy to commit wire fraud in connection with the use of the sham invoice as part of his role in the conspiracy. He is due to be sentenced by Judge Hellerstein on February 12, 2019, and faces a maximum sentence of five years in prison.
On January 2, 2019, Reichberg was found guilty of honest services fraud, conspiracy, and obstruction of justice in connection with a separate scheme in which he and Rechnitz provided gifts and benefits to a number of high-level officers of the New York City Police Department (“NYPD”) in exchange for official police action for themselves and their associates. He is due to be sentenced by U.S. District Judge Gregory H. Woods on April 4, 2019.
* * *
In addition to the prison term, SEABROOK, 58, of the Bronx, New York, was sentenced to three years of supervised release, and ordered to pay restitution in the amount of $19 million.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and the NYPD Internal Affairs Bureau.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Martin Bell, Russell Capone, and Lara Pomerantz are in charge of the prosecution.