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8 February 2019
Nigerian Business E-mail Scammer Sentenced for FraudRead the Press Release
United States Attorney Joe Kelly announced that Adewale Aniyeloye, age 32 from Nigeria, was sentenced today for Wire Fraud. United States District Court Judge Robert F. Rossiter, Jr., sentenced Aniyeloye to a 96-month term of imprisonment. After his release from prison, Aniyeloye will begin a 3-year term of supervised release. The restitution amount is to be determined and will be ordered at a later date.
From approximately February 2015 to September 2016, Aniyeloye and other co-conspirators engaged in a form of fraud commonly referred to as business e-mail compromise. Aniyeloye used compromised e-mail accounts to send spoofed e-mails to thousands of business employees across the United States who had accounting responsibilities, to include authorizing and sending wire transfers. A spoofed e-mail is one in which the e-mail appears to be originating from a sender other than the person who is truly the sender. Aniyeloye and his co-conspirators posed as Chief Executive Officers or other business executives and would direct recipients of the spoofed e-mails to complete wire transfers. The business employees, thinking that the wire transfer requests were legitimate, would comply with the wire transfer requests and wire money to the location designated in the written instructions. The scheme was primarily conducted from Nigeria where Aniyeloye was living. In 2016, investigators learned Aniyeloye was planning to travel to the United States. He was arrested upon his arrival in Atlanta. Pursuant to this scheme, businesses, including businesses in the District of Nebraska, lost more than $6 million. The attempted losses pursuant to the scheme are more than $30 million. The two Nebraska victims of the fraud scheme lost approximately $163,230.
This case was investigated by the Federal Bureau of Investigation.
New York Man Arrested for Attempting and Conspiring to Provide Material Support to Terrorist OrganizationRead the Press Release
A New York man was charged today with attempting and conspiring to provide material support to Lashkar e-Tayyiba (“LeT”), a Pakistan-based designated foreign terrorist organization responsible for multiple high-profile attacks, including the infamous Mumbai attacks in Nov. 2008. Assistant Attorney General for the National Security Division John C. Demers, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, the Assistant Director-in-Charge William F. Sweeney of the FBI New York Field Office and Commissioner James P. O’Neill of the Police Department for the City of New York (NYPD) made the announcement.
Jesus Wilfredo Encarnacion, a.k.a. “Jihadistsoldgier,” “Jihadinhear,” “Jihadinheart,” “Lionofthegood,” was arrested last night at John F. Kennedy International Airport (JFK Airport) in Queens, New York. Encarnacion is expected to be presented later today before Magistrate Judge Henry B. Pitman in Manhattan federal court.
“Encarnacion allegedly attempted to travel to Pakistan to join a foreign terrorist organization and conspired with another individual to provide that organization with material support,” said Assistant Attorney General Demers. “The National Security Division is committed to identifying and holding accountable those who seek to join and support designated foreign terrorist organizations.”
“As alleged, Jesus Encarnacion, a Manhattan man, plotted to travel to Pakistan to join and train with the terrorist organization Lashkar e-Tayyiba, which is infamous around the world for perpetrating the lethal 2008 Mumbai terror attacks and other atrocities,” said U.S. Attorney Berman. “The excellent work of the FBI and NYPD stopped Encarnacion’s alleged plan to support this deadly terrorist organization before he took flight, and now he will face federal terrorism charges.”
“As alleged, not only did Mr. Encarnacion express a desire to execute and behead people, he scheduled travel and almost boarded a plane so he could go learn how to become a terrorist,” FBI Assistant Director-in-Charge Sweeney Jr. “These organizations are using the internet and social media to appeal to the most barbaric impulses in people, and train them to kill. The FBI New York Joint Terrorism Task Force will continue to do all it can to stop these alleged criminals before innocent people are killed.”
“As alleged, Jesus Encarnacion had expressed his desire to commit a terrorist attack while living in New York City and never abandoned those plans,” said NYPD Police Commissioner O’Neill. “Allegedly, one of his stated motives for traveling overseas was to get the training and experience he believed he needed to someday return to the United States and carry out attacks. I want to commend the FBI Agents, NYPD Detectives and representatives of 54 other agencies that make up the Joint Terrorism Task Force for the investigation that led to this arrest.”
As alleged in the criminal Complaint,[1] filed today in Manhattan federal court:
In Nov. 2018, Encarnacion expressed his desire to join a terrorist group in an online group chat, where he met another individual (CC-1). CC-1 introduced Encarnacion to an individual who, unbeknownst to CC-1 or Encarnacion, was in fact an undercover FBI employee (UC-1). Encarnacion repeatedly expressed, in the course of recorded communications through a social media service with CC-1 and through an encrypted messaging service with UC-1, his allegiance to and support for LeT, which, since approximately 2001, has been designated as a Foreign Terrorist Organization by the United States Secretary of State.
Over the past several months, Encarnacion has discussed his desire and plans to join LeT overseas so that he could receive training and participate in violent acts of terrorism. For example, Encarnacion told UC-1 that he was “ready to kill and die in the name of Allah” and sought UC-1’s assistance to help Encarnacion travel to abroad to serve as an “executioner” for LeT, stating, “I want to execute. I want to behead. Shoot.” Encarnacion further stated that he aspired to commit terrorist attacks (“a bombing and shooting”) in the United States, but lacked “guidance” and “guns” to do so.
During the months that followed, Encarnacion and UC-1 agreed on a plan that Encarnacion believed would allow him to join LeT in Pakistan. Encarnacion told UC-1 that he had made arrangements to travel to a particular city in Europe (the “European City”), as the first step of traveling to Pakistan to join LeT. Encarnacion purchased an airline ticket for a flight scheduled to depart on Feb. 7, 2019, from JFK Airport, to the European City. On Feb. 7, Encarnacion traveled to JFK Airport, where he was arrested by the FBI after he attempted to board that flight.
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Encarnacion, 29, of Manhattan, is charged with one count of attempting to provide material support to a designated foreign terrorist organization and one count of conspiring to provide material support to a designated foreign terrorist organization, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Demers and Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of agents from the FBI, detectives from the NYPD, and officers from numerous other agencies, including U.S. Customs and Border Protection, which assisted significantly in this case.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys David W. Denton Jr. and Kimberly J. Ravener are prosecuting with the assistance of Bridget Behling and Alexandra Hughes of the National Security Division.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below are only allegations, and every fact described should be treated as an allegation.
Nevada Salesman, His Domestic Partner, and Reno Businessman Indicted for Conspiring to Defraud the IRSRead the Press Release
On Feb. 7, 2019, a federal grand jury returned an indictment charging Saud Alessa, Jeffrey Bowen, and Jackie Hayes, with conspiring to defraud the Internal Revenue Service (IRS), and additionally charged Alessa with tax evasion and filing false tax returns, announced Principle Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Nicholas A. Trutanich for the District of Nevada.
According to the indictment, Bowen was the President and owner of a vacuum cleaner distributing company in Reno, Nevada. Alessa worked for Bowen’s company on sales teams from 1998 to 2006. During those years, Alessa allegedly accrued over $200,000 in unpaid federal income tax. In 2006, the IRS began attempting to collect Alessa’s outstanding tax liabilities. Alessa allegedly did not voluntarily pay any of his outstanding debt to the IRS, and in 2013, Alessa filed a bankruptcy petition reporting that he owed a federal tax debt of $503,821 to the IRS.
The indictment charges that between 2010 and 2013 Alessa, Alessa’s longtime domestic partner Hayes, and Bowen conspired to conceal Alessa’s business activity and income from the IRS. Alessa’s commissions and other earned income earned were allegedly recorded in Bowen’s company’s books in Hayes’s name and paid to Hayes instead of Alessa. Alessa, Bowen, and Hayes allegedly filed fraudulent documents with the IRS that disguised the commissions and other income earned by Alessa as income earned by Hayes. In order to further the scheme, the co-conspirators allegedly made false and misleading statements to the IRS, the United States Bankruptcy Court, and the United States Trustee’s office to convince the authorities that Alessa had no business activity and no source of income that could be used to pay Alessa’s outstanding tax debt to the IRS.
The indictment also charges Alessa individually with evading the payment of taxes, penalties and interest due and owing to the IRS for tax years 1998 through 2007, and with filing false income tax returns for 2012 and 2013.
If convicted, Alessa, Bowen, and Hayes each face a maximum sentence of five years in prison on the conspiracy counts. Alessa faces an additional five years in prison on the tax evasion count and an additional three years in prison on each false return count. Alessa, Bowen, and Hayes also face a period of supervised release and monetary penalties.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
IRS-Criminal Investigation investigated the case. Trial Attorneys Christopher Strauss and Michael Landman, both of the Tax Division, along with Assistant United States Attorney Sue Fahami, are prosecuting the case.
Nevada Salesman, His Domestic Partner, and Reno Businessman Indicted for Conspiring to Defraud the IRSRead the Press Release
RENO, Nev. - On Feb. 7, 2019, a federal grand jury returned an indictment charging Saud Alessa, Jeffrey Bowen, and Jackie Hayes, with conspiring to defraud the Internal Revenue Service (IRS), and additionally charged Alessa with tax evasion and filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Nicholas A. Trutanich for the District of Nevada.
According to the indictment, Bowen was the President and owner of a vacuum cleaner distributing company in Reno, Nevada. Alessa worked for Bowen’s company on sales teams from 1998 to 2006. During those years, Alessa allegedly accrued over $200,000 in unpaid federal income tax. In 2006, the IRS began attempting to collect Alessa’s outstanding tax liabilities. Alessa allegedly did not voluntarily pay any of his outstanding debt to the IRS, and in 2013, Alessa filed a bankruptcy petition reporting that he owed a federal tax debt of $503,821, to the IRS.
The indictment charges that between 2010 and 2013 Alessa, Alessa’s longtime domestic partner Hayes, and Bowen conspired to conceal Alessa’s business activity and income from the IRS. Alessa’s commissions and other earned income earned were allegedly recorded in Bowen’s company’s books in Hayes’s name and paid to Hayes instead of Alessa. Alessa, Bowen, and Hayes allegedly filed fraudulent documents with the IRS that disguised the commissions and other income earned by Alessa as income earned by Hayes. In order to further the scheme, the co-conspirators allegedly made false and misleading statements to the IRS, the United States Bankruptcy Court, and the United States Trustee’s office to convince the authorities that Alessa had no business activity and no source of income that could be used to pay Alessa’s outstanding tax debt to the IRS.
The indictment also charges Alessa individually with evading the payment of taxes, penalties and interest due and owing to the IRS for tax years 1998 through 2007, and with filing false income tax returns for 2012 and 2013.
If convicted, Alessa, Bowen, and Hayes each face a maximum sentence of five years in prison on the conspiracy counts. Alessa faces an additional five years in prison on the tax evasion count and an additional three years in prison on each false return count. Alessa, Bowen, and Hayes also face a period of supervised release and monetary penalties.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
IRS-Criminal Investigation investigated the case. Trial Attorneys Christopher Strauss and Michael Landman, both of the Tax Division, along with Assistant United State Attorney Sue Fahami are prosecuting the case.
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Neenah Man Indicted on Drug Dealing and Firearm ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on February 5, 2019, a federal grand jury issued an indictment against Tou W. Vang, also known as “Meng Vang” (age: 38) of Neenah, Wisconsin.
The indictment alleges that Vang possessed methamphetamine and marijuana with the intent to distribute the controlled substances contrary to Title 21, United States Code, Sections 841(a), (b)(1)(A), and (b)(1)(D). Further, he is charged with possession of a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A). If convicted of the charges alleged, Vang faces a mandatory 15 year prison sentence and up to a lifetime of imprisonment.
Vang will be arraigned on February 14, 2019, in Green Bay federal court.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Wisconsin Department of Justice, Division of Criminal Investigation, and the Appleton Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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NDTX Weekly Roundup -- 2/8/19Read the Press Release
SENTENCING – Bradley Matocha
On Feb. 8, Bradley James Matocha, II, was sentenced to more than 13 years in prison, followed by a 20-year term of supervised release, after pleading guilty to attempted enticement of a minor. Matocha, 32, of Plano, responded to an ad in which a father stated he had a daughter who needed to “learn the ropes.” Matocha chatted with both the father and the daughter, offering to meet them and have sex with the minor. With the meeting scheduled for June 26, 2018, Matocha suggested that he and the father first meet at a Jack-in-the-Box in Fort Worth and from there go back to their house where he would have sex with the daughter. When Matocha arrived at the Jack-in-the-Box, however, he was arrested by Fort Worth police, who had engaged in an undercover online operation to ferret out sexual predators.SENTENCING – Paul Morris
On Feb. 8, Paul David Morris of Irving, TX was sentenced to 20 years in prison on drug charges. Mr. Morris pleaded guilty to possession with intent to distribute methamphetamine in March. The Texas Department of Public Safety investigated the case.SENTENCING – Alvin Penn
On Feb. 5, Alvin Christopher Penn was sentenced to 14 years in prison for escape from federal custody and unlawful possession of a firearm. In July, a jury found Mr. Penn guilty of escaping from a residential reentry center in Hutchins, Texas. According to evidence presented at trial, shortly after he escaped from the halfway house, Mr. Penn took possession of a Smith & Wesson pistol and engaged in a gunfight with two men at an apartment complex in Grand Prairie. Shortly thereafter, he fled from police, driving 70 mph in a residential neighborhood, and ultimately crashed into another apartment building. Brandishing the gun at bystanders, he then fled on foot, and was subsequently apprehended by a U.S. Marshals and Grand Prairie Police officers.INDICTMENT* -- Modesto Balderas
On Feb. 5, a federal grand jury indicted Modesto Balderas on a firearm charge. Mr. Balderas, a convicted felon, allegedly possessed a Ruger 9 mm pistol with an obliterated serial number. If convicted, Mr. Balderas faces up to 10 years in federal prison.SENTENCING – Jose Velasquez
On Feb. 4, Jose DeJesus Velasquez was sentenced to more than a year in prison for conspiracy to defraud the United States. Mr. Vasquez, a commercial tax preparer, admits he allowed employees to file tax returns claiming education credits regardless of whether the taxpayer was entitled to those credits. The IRS - Criminal Investigation Division conducted the investigation.* An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Mississippi Accountant Convicted of Tax FraudRead the Press Release
A federal jury today in Hattiesburg, Mississippi convicted certified public accountant Carl Nicholson of conspiracy to defraud the United States, six counts of aiding in the preparation of false tax returns, and four counts of filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and United States Attorney Mike Hurst for the Southern District of Mississippi.
“Today, justice prevailed, the rule of law was enforced, and a long-time tax cheat was held accountable for his crimes,” said U.S. Attorney Hurst. “I commend our prosecutors, agents, and state investigators for their tireless work in bringing this individual and others like him to justice. Today’s verdict proves that no one is beyond the reach of the long arm of the law. We will continue to work with our partners and use every resource available to root out fraud and corruption throughout our state.”
According to court documents and evidence presented at trial, from 2012 to 2014, Nicholson conspired with a client to falsely classify personal expenses as business expenses and filed false tax returns on the client’s behalf. On one occasion, Nicholson directed that a $250,000 payment to one of the client’s personal trusts be classified as a business expense. Nicholson was also found guilty of filing his own false personal income tax returns for 2012 through 2015. Specifically, he falsely claimed expenses, failed to report income, and under-reported the gain on the sale of his accounting firm Nicholson & Company.
Sentencing has been scheduled for May 23, 2019. At sentencing, Nicholson faces a maximum of five years in prison for the conspiracy charge and three years for each charge of filing false tax returns and aiding in the preparation of false tax returns. He also faces supervised release and restitution.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Hurst thanked special agents of Internal Revenue Service – Criminal Investigation and investigators with the Mississippi Auditor’s Office, who investigated the case, and Assistant United States Attorney Jay Golden and Trial Attorney Kim Shartar, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Milwaukee Man and Woman Sentenced to Prison for Five Armed RobberiesRead the Press Release
United States Attorney Matthew D. Krueger has announced that last Friday, United States District Judge Pamela Pepper sentenced Deon Batton to 12 ½ years in prison after he pled guilty to committing five armed robberies in Milwaukee and one count of discharging a firearm during a crime of violence. Judge Pepper previously sentenced Batton’s co-defendant, Laura Walton, to 10 years in prison after she pled guilty to committing five armed robberies and one count of brandishing a firearm during a crime of violence. Neither defendant had a felony conviction prior to their arrest for the armed robberies.
As part of their plea agreements, Batton and Walton admitted to robbing two Subway restaurants, a Cousin’s Subs restaurant, a Taco Bell, and a GameStop store between October 9 and 11, 2017. During each robbery, one or both of them brandished handguns and pointed them at employees. During one of the Subway robberies, Batton discharged his weapon at a security monitor. Under federal law, the discharge of a firearm during a crime of violence, like a robbery, requires a 10-year mandatory minimum prison sentence; brandishing a firearm requires a 7-year mandatory minimum prison sentence.
This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force, the Milwaukee Police Department, and the Milwaukee County District Attorney Investigator’s Office. The case was prosecuted by Assistant United States Attorney Margaret B. Honrath.
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Mexican National who was Previously Convicted of Vehicular Homicide Sentenced for Illegally Reentering United StatesRead the Press Release
CINCINNATI – Daniel Delangel Villeda, 45, a Mexican national, was sentenced in U.S. District Court to 42 months in prison for illegally reentering the United States after being removed from the country.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations announced the sentence handed down today by U.S. District Judge Timothy S. Black.
According to court documents, Villeda was convicted of Aggravated Vehicular Homicide and Aggravated Vehicular Assault in Hamilton County in 2002. In 2006, after serving a five-year prison term, he was removed from the United States.
Villeda then returned to the United States and was arrested in Nebraska in late 2010 for operating a vehicle under the influence. He was subsequently removed from the country again, and returned to the United States for a third time.
He was arrested for operating a vehicle under the influence again and was prosecuted in the Southern District of Ohio for illegal reentry. He was sentenced to 24 months in prison and then removed from the United States in August 2017.
On June 2, 2018, Villeda was arrested by the Hamilton Police Department for operating a vehicle under the influence and was then taken into custody by immigration officers.
U.S. Attorney Glassman commended the cooperative investigation by ICE, as well as Special Assistant United States Attorney Timothy Landry, who is representing the United States in this case.
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Menominee Men Indicted for Firearm Offenses on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on February 5, 2019, a federal grand jury returned a one-count indictment against two men allegedly involved in a firearms offense in the Menominee Indian Reservation. The indictment named Tony A. Fish, Jr. (age: 38) of Zoar and Robert S. Bear (age: 38) of Neopit. The indictment charged both Fish and Bear with being a Felon in Possession of a Firearm, in violation of 18 U.S.C. 922(g). If convicted, each defendant faces a maximum of 10 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release.
According to the indictment, on or about January 6, 2018, while at a residence in the Village of Zoar, Fish and Bear possessed a .30-06 rifle. Both defendants were prohibited from possession of firearms at the time of the incident.
This case is being prosecuted as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
The Menominee Tribal Police Department investigated the case, with assistance from the Menominee County Sheriff’s Office and Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove their guilt beyond a reasonable doubt.
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Men from Navarre and Huron indicted on child pornography chargesRead the Press Release
Two men were indicted for child pornography crimes.
David Nestor, 39, of Navarre, was indicted on one count of receipt and distribution of child pornography and one count of possession of child pornography. Nestor received and distributed images of children engaged in sexually explicit conduct between October and December 2018, and possessed those images on January 22, 2019.
Jordan Coffman, 23, of Huron, was indicted on one count of possession of child pornography. Coffman, in 2015, possessed images of children engaged in sexually explicit conduct.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The Nestor case is being prosecuted by Assistant U.S. Attorney Carol Skutnik following an investigation by the FBI. The Coffman case is being prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman following an investigation by the FBI.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Member of “G’z up” Street Gang Convicted of Two Murders in BrooklynRead the Press Release
A federal jury in Brooklyn returned a guilty verdict today against Nicholas Washington, also known as “Face,” a member of the Bedford Stuyvesant-based street gang G’z Up, on two counts of murder-in-aid of racketeering, two counts of causing a death through the use of a firearm, and attempted obstruction of justice. The verdict followed three weeks of trial before United States District Judge Eric N. Vitaliano. When sentenced, Washington faces a mandatory term of life imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“As the jury found, Washington planned and directed two murderous schemes related to his drug trafficking enterprise at the Marcy Houses that left two unintended victims dead,” stated United States Attorney Donoghue. “Washington will now be held responsible for this total disregard for human life. Today’s verdict underscores the resolve of this Office and our law enforcement partners to eradicate violent gangs that jeopardize the safety of our communities.”
The evidence at trial established that between January 2004 and December 2006, Washington and other members and associates of G’z Up sold crack cocaine at the Marcy Houses in Bedford Stuyvesant, with a base of operations at 564 Park Avenue, as well as in Monticello, New York, and Altoona, Pennsylvania. On February 10, 2005, Washington directed two G’z Up members to kill the leader of a rival drug crew whose members were feuding with G’z Up. Washington provided a handgun and directed the two to ambush the leader of the drug crew inside a building at the Marcy Houses development. Both gunmen fired, but missed their intended target and killed a bystander, Steven Negron.
After Washington’s brother, John Hayes, was murdered by a rival in July 2006, Washington sought revenge. On August 7, 2006, the day of Hayes’s funeral, Washington traveled to the Tompkins Houses in Bedford Stuyvesant with five G’z Up members and associates, where they confronted the individual they believed responsible for Hayes’s murder. Two gunmen opened fire, but again missed their intended target, and instead killed a bystander, Andrell Napper.
Following his indictment on the murders in 2014, Washington evaded arrest for two years and in 2016 attempted to avoid arrest by providing false information to an NYPD officer.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Margaret Gandy and Virginia Nguyen are in charge of the prosecution.
The Defendant:
NICHOLAS WASHINGTON
Age: 35
Bedford Stuyvesant, BrooklynE.D.N.Y. Docket No. 14-CR-266 (ENV)
Member of Brooklyn Street Gang, Cypress Gansta Crips, Sentenced to 30 Years’ Imprisonment for Murder of a Bloods-Affiliated RivalRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Tyvon Bannister, also known as “Turtle,” a member of the Crips-affiliated Cypress Gangsta Crips (CGC) street gang, was sentenced by United States District Judge Brian M. Cogan to 30 years’ imprisonment following his conviction for the July 8, 2014 murder of Rayvon Henreques. Bannister pleaded guilty in May 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“With today’s sentence, Bannister will spend decades in prison for callously ending the life of a 26-year-old man simply because he was associated with a rival gang,” stated United States Attorney Donoghue. “This Office will continue working tirelessly with our law enforcement partners to make our community safe by eradicating these destructive street gangs and holding their violent members accountable.”
“The primary mission of the NYPD and our law enforcement partners is to arrest, prosecute, and send away with a meaningful prison sentence anyone who instills fear in New Yorkers through their criminal actions. With this sentence today, the result of our efforts are tangible. I thank our colleagues at the Eastern District and the FBI for their unceasing professionalism and dedicated work in removing from our streets those who commit crime and disorder, especially when it’s in the form of gang violence,” stated NYPD Commissioner O’Neill.
Bannister is a member of the CGC, which is comprised of individuals residing in and around the Cypress Hills Houses (“Cypress”), a large New York City Housing Authority complex in East New York, Brooklyn. Cypress has been plagued by gang and drug-related violence arising largely from a long-standing feud between the CGC and a local Bloods-affiliated gang. On July 8, 2014, Bannister and another gang member shot and killed Henriques in front of a nightclub in East New York. Henriques was targeted because of his association with the Bloods-affiliated gang.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Margaret E. Gandy, Andrey Spektor and David Gopstein are in charge of the prosecution.
The Defendant:
TYVON BANNISTER (also known as “Turtle”)
Age: 25
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-116 (BMC)
Marketer Agrees to Pay Nearly $340,000 for Allegedly Engaging in an Illegal Kickback Scheme with OK CompoundingRead the Press Release
TULSA, Okla. – James Paul Adams, 35, of Cypress, Texas, also known as Beau Adams, owner of the Texas marketing company One Source Healthcare Organization, LLC, agreed to pay the government $339,412.50 for allegedly accepting illegal kickback payments from OK Compounding, LLC, announced U.S. Attorney Trent Shores.
The U.S. Attorney’s Office in the Northern District of Oklahoma entered into a settlement agreement this week with Adams, in an effort to recoup the costs to the U.S. government resulting from the illegal kickbacks. This civil settlement resulted from an investigation into OK Compounding, a pharmacy previously located in Skiatook, Oklahoma.
The government alleged OK Compounding paid substantial kickbacks to various third-party “marketers” in exchange for those marketers referring prescriptions for compounded drugs to OK Compounding. The kickbacks consisted of a share of the revenue generated by the marketers’ referrals. These arrangements violated the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b).
In an investigation into OK Compounding, the U.S. Attorney’s Office Criminal Division recently brought criminal charges against two men affiliated with pharmacy. In December, a federal grand jury returned an indictment against Christopher Parks, 57, and Dr. Gary Lee, 58, both of Tulsa, for violations of the federal anti-kickback statute and conspiracy to commit health care fraud.
“The federal health care system was intended to benefit and help ailing Americans. It was not designed to promote a system of corruption and kickbacks so that Mr. Adams could live a lavish lifestyle,” said U.S. Attorney Shores. “The Affirmative Civil Enforcement prosecutors in our Civil Division are at the tip of the spear when holding individuals like Mr. Adams accountable for their unscrupulous behavior. Whether due to personal greed or some other corrupt intent, the United States Attorney’s Office will use all tools available - be they criminal or civil - to stop health care fraud.”
Through these schemes, Adams knowingly caused false or fraudulent claims to be presented to TRICARE and Medicare programs for the purpose of defrauding the federal program. Because federal health care programs were involved, the kickbacks were also in violation of the False Claims Act. It is illegal to pay or receive “kickbacks” in conjunction with federal health care insurance.
Laws against kickbacks are crucial to insure that financial motives do not undermine the medical judgment of physicians and other health care providers. The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs.
Affirmative Civil Enforcement (ACE) refers to filing civil lawsuits on behalf of the United States. The purpose of these civil actions is to recover government money lost to fraud or other misconduct or to impose penalties for violations of Federal health, safety, civil rights or environmental laws. As in this action, the ACE team can recover losses from health care providers who defraud Federal health programs like Medicare, Medicaid, and Tricare by overbilling for goods and services or billing for goods and services that were not rendered, not medically necessary, or substandard.
To report fraud and abuse against the Federal government in the Northern District of Oklahoma, please contact the U.S. Attorney’s Office at 918-382-2700 and speak to a member of the ACE unit.
Information regarding health care fraud to Medicare can also be reported to the Department of Health and Human Services, Office of Inspector General, at https://oig.hhs.gov/fraud/report-fraud/index.asp. Information for fraud against Tricare can be reported at https://health.mil/Military-Health-Topics/Access-Cost-Quality-and-Safety/Quality-And-Safety-of-Healthcare/Program-Integrity/Fraud-and-Abuse-Report-Submission-Form.
This matter was handled by Assistant U.S. Attorney for the Affirmative Civil Enforcement unit, Marianne Hardcastle, and is the product of a collaborative investigation by the FBI, U.S. Department of Health & Human Services- Office of Inspector General, Department of Defense- Defense Criminal Investigative Service, Drug Enforcement Administration, U.S. Postal Inspection Service, Oklahoma Attorney General’s Office, Oklahoma State Board of Pharmacy, Oklahoma State Board of Medical Licensure and Supervision and Food and Drug Administration-Office of Criminal Investigation.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Manhattan Man Arrested for Attempting and Conspiring to Provide Material Support to Terrorist OrganizationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John C. Demers, the Assistant Attorney General for National Security, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that JESUS WILFREDO ENCARNACION, a/k/a “Jihadistsoldgier,” “Jihadinhear,” “Jihadinheart,” “Lionofthegood,” was arrested last night at John F. Kennedy International Airport (“JFK Airport”) in Queens, New York. ENCARNACION was charged by a criminal Complaint earlier today with attempting and conspiring to provide material support to Lashkar e-Tayyiba (“LeT”), a Pakistan-based designated foreign terrorist organization responsible for multiple high-profile attacks, including the infamous Mumbai attacks in November 2008. ENCARNACION is expected to be presented later today before Magistrate Judge Henry B. Pitman in Manhattan federal court.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Jesus Encarnacion, a Manhattan man, plotted to travel to Pakistan to join and train with the terrorist organization Lashkar e-Tayyiba, which is infamous around the world for perpetrating the lethal 2008 Mumbai terror attacks and other atrocities. The excellent work of the FBI and NYPD stopped Encarnacion’s alleged plan to support this deadly terrorist organization before he took flight, and now he will face federal terrorism charges.”
Assistant Attorney General John C. Demers said: “Encarnacion allegedly attempted to travel to Pakistan to join a foreign terrorist organization and conspired with another individual to provide that organization with material support. The National Security Division is committed to identifying and holding accountable those who seek to join and support designated foreign terrorist organizations.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, not only did Mr. Encarnacion express a desire to execute and behead people, he scheduled travel and almost boarded a plane so he could go learn how to become a terrorist. These organizations are using the internet and social media to appeal to the most barbaric impulses in people, and train them to kill. The FBI New York Joint Terrorism Task Force will continue to do all it can to stop these alleged criminals before innocent people are killed.”
NYPD Police Commissioner James P. O’Neill said: “As alleged, Jesus Encarnacion had expressed his desire to commit a terrorist attack while living in New York City and never abandoned those plans. Allegedly, one of his stated motives for traveling overseas was to get the training and experience he believed he needed to someday return to the United States and carry out attacks. I want to commend the FBI Agents, NYPD Detectives and representatives of 54 other agencies that make up the Joint Terrorism Task Force for the investigation that led to this arrest.”
As alleged in the criminal Complaint,[1] filed today in Manhattan federal court:
In November 2018, ENCARNACION expressed his desire to join a terrorist group in an online group chat, where he met another individual (“CC-1”). CC-1 introduced ENCARNACION to an individual who, unbeknownst to CC-1 or ENCARNACION, was in fact an undercover FBI employee (“UC-1”). ENCARNACION repeatedly expressed, in the course of recorded communications through a social media service with CC-1 and through an encrypted messaging service with UC-1, his allegiance to and support for LeT, which, since approximately 2001, has been designated as a Foreign Terrorist Organization by the United States Secretary of State.
Over the past several months, ENCARNACION has discussed his desire and plans to join LeT overseas so that he could receive training and participate in violent acts of terrorism. For example, ENCARNACION told UC-1 that he was “ready to kill and die in the name of Allah” and sought UC-1’s assistance to help ENCARNACION travel to abroad to serve as an “executioner” for LeT, stating, “I want to execute. I want to behead. Shoot.” ENCARNACION further stated that he aspired to commit terrorist attacks (“a bombing and shooting”) in the United States, but lacked “guidance” and “guns” to do so.
During the months that followed, ENCARNACION and UC-1 agreed on a plan that ENCARNACION believed would allow him to join LeT in Pakistan. ENCARNACION told UC-1 that he had made arrangements to travel to a particular city in Europe (the “European City”), as the first step of traveling to Pakistan to join LeT. ENCARNACION purchased an airline ticket for a flight scheduled to depart on February 7, 2019, from JFK Airport, to the European City. On February 7, ENCARNACION traveled to JFK Airport, where he was arrested by the FBI after he attempted to board that flight.
* * *
ENCARNACION, 29, of Manhattan, is charged with one count of attempting to provide material support to a designated foreign terrorist organization and one count of conspiring to provide material support to a designated foreign terrorist organization, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of agents from the FBI, detectives from the NYPD, and officers from numerous other agencies, including U.S. Customs and Border Protection, which assisted significantly in this case. Mr. Berman also thanked the Counterterrorism Section of the Department of Justice’s National Security Division.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys David W. Denton Jr. and Kimberly J. Ravener are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below are only allegations, and every fact described should be treated as an allegation.
Man charged with making threats and assaulting officersRead the Press Release
A federal grand jury returned a two-count indictment charging Lon R. Sweeney, age 53, making threats against a federal employee and assault of federal officers.
The indictment alleges that Sweeney threatened a Department of Veterans Affairs employee and later, while being placed under arrest, assaulted three VA officers.
Assistant U.S. Attorney Brad Beeson is prosecuting the case following an investigation by the Department of Veterans Affairs Office of Inspector General — Criminal Investigative Division and the VA Police Department.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt
Man Who Used Free Wi-Fi at Rochester Laundromat to Download Child Porn Is Going to PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joseph A. Heath, Jr., 46, of Rochester, NY, who was convicted of receipt of child pornography, was sentenced to serve 16 years in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Melissa Marangola, who prosecuted the case, stated the defendant used the Wi-Fi at a laundromat on Monroe Avenue in Rochester to download child pornography. On February 4, 2018, investigators encountered Heath at the laundromat and seized a laptop computer, which contained approximately 80 videos containing child pornography.
The defendant has a prior conviction for the sexual abuse of a 6-year-old girl.
The sentencing is the culmination of an investigation by Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
Man Sentenced to Year in Prison for Bankruptcy FraudRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Teddy Stevens, 45, currently of Arizona but formerly of Middleton, Wisconsin, was sentenced yesterday by U.S. District Judge William Conley to one year and one day in federal prison for bankruptcy fraud. Stevens pleaded guilty to the charge on November 7, 2018.
Stevens defrauded the bankruptcy court and his creditors by making false statements on his bankruptcy documents and by making false statements under oath at a bankruptcy hearing called the Meeting of Creditors. Through his conduct, Stevens was attempting to shield from the bankruptcy trustee certain real-estate related assets. At his Meeting of Creditors, Stevens provided a false address and falsely testified under oath that he had not sold, transferred, given away or otherwise disposed of any of his assets in the four years prior to filing. Stevens also convinced another individual to provide false information to the bankruptcy court in an effort to conceal his real interest in a residence.
In selecting a sentence of prison, Judge Conley noted that Stevens’s actions were calculated and egregious. Judge Conley also said that he wanted to deter others from engaging in similar conduct.
The charges against Stevens were the result of an investigation conducted by the Federal Bureau of Investigation and IRS Criminal Investigation. The U.S. Attorney’s Office also acknowledges the assistance of the Office of the United States Trustee in Madison, Wisconsin. The prosecution of the case has been handled by Assistant U.S. Attorney Meredith Duchemin.
Man Sentenced for Speeding Away with Border Patrol Agent Hanging out of Driver’s WindowRead the Press Release
Assistant U.S. Attorneys Ryan Sausedo (619) 546-9689 and Katherine McGrath (619) 546-9054
SAN DIEGO – John Leland Combs was sentenced to 30 months in prison today for assaulting a U.S. Border Patrol agent by speeding away in a stolen car while the agent was leaning inside the driver’s window, and then leading Border Patrol agents on a high-speed chase on State Route 94, endangering everyone on the road that morning.
Combs was convicted by a federal jury on November 6, 2018 of assault on a federal officer and high speed flight from a checkpoint.
According to evidence presented at trial, the assault occurred during the early morning hours of September 2, 2017. Agent Norberto M. Ribac was assigned to the Brown Field Border Patrol Station All-Terrain Vehicle (ATV) Unit patrolling in the area of Tecate, California. At approximately 5:40 a.m., Agent Ribac discovered northbound shoeprints in the sand approximately 300 yards west of the Tecate Port of Entry. Agent Ribac followed the footprints to Industrial Road, where he discovered Combs standing next to his car, a stolen Hyundai Genesis, and talking on his cell phone, mere yards north of the border fence in Tecate.
Agent Ribac approached Combs and asked him if there was anything or anyone in the car. Combs said he was alone and voluntarily opened the trunk of the car for Agent Ribac to inspect. As Agent Ribac requested registration and records checks for the car, Combs got inside the car in an apparent attempt to leave the area. When Agent Ribac reached into the car through the driver’s side window to turn the engine off, Combs sped off. While Agent Ribac was attempting to free himself from the moving car, the car struck him on his right elbow and on the right side of his head, breaking his ATV helmet.
In an attempt to flee the State Route 94 Checkpoint, Combs hit speeds over 70 mph while swerving in and out of traffic on a winding two-lane highway. As Combs veered over the cone lane and into the eastbound lane of the checkpoint, video footage showed the agents successfully deploying spike strips. Combs eventually lost control of the car and swerved into a residential driveway. He attempted to flee on foot, but was quickly arrested.
“Agent Ribac put his life on the line to keep our community safe,” said U.S. Attorney Robert Brewer. “I’m very glad it’s the defendant, and not the brave agent, who is paying the price for this audacious crime. We will use our legal arsenal to vigorously prosecute those who assault dedicated U.S. Border Patrol agents and endanger the public with dangerous escape attempts.”
“We are grateful to the U.S. Attorney’s Office for their tenacity and professionalism in presenting a strong case in support of our agent,” said San Diego Sector Chief Patrol Agent Rodney Scott. “The community in which we serve has spoken in favor of law and order, and every agent in this Sector appreciates the support as we work to provide a secure border.”
The case was prosecuted by Assistant United States Attorneys Ryan Sausedo and Katherine McGrath.
DEFENDANT Case No. 17cr3026-CAB
John Leland Combs
SUMMARY OF CHARGES
Assault on a Federal Officer, in violation of 18 U.S.C. § 111
Maximum Penalty: 12 months’ prison, $100,000 fine; 1 year supervised release
High Speed Flight from a Checkpoint, in violation of 18 U.S.C. § 758
Maximum Penalty: 5 years’ prison, $250,000 fine; 3 years’ supervised release
AGENCIES
Department of Homeland Security, Border Patrol Intelligence
U.S. Border Patrol
MS-13 Gang Members Charged with Assault In-Aid-Of RacketeeringRead the Press Release
Luis Rivas, Dennis Cabrera and Javier Rodriguez, members of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, will be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon in federal court in Brooklyn on an indictment charging them with assault in-aid-of racketeering. The defendants were arrested earlier today and transferred to federal custody. The case is assigned to United States District Judge Pamela K. Chen.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the indictment and arrests.
According to court filings, the defendants are members of MS-13. On October 22, 2018, while the defendants were incarcerated on state charges at the Manhattan Detention Complex, they assaulted a fellow inmate who they suspected to be a member of the rival Latin King gang, punching, kicking and stabbing him with a makeshift knife, first in his cell and then in a hallway of the facility. The brutal assault was captured on video surveillance footage. At the conclusion of the assault, Rivas flashed an MS-13 hand sign at the victim.
The victim suffered multiple puncture wounds to his back, torso and arms, including two deeper lacerations that required stitches.
“As alleged, the defendants are members of the MS-13, an international gang known for its culture of violence,” stated United States Attorney Donoghue. “Unprovoked, they assaulted and stabbed an inmate housed with them for no other reason than the inmate’s suspected affiliation with a rival gang. We will continue to work with our law enforcement partners to hold MS-13 members accountable for their crimes.” Mr. Donoghue thanked the Manhattan District Attorney’s Office for its assistance in the investigation.
“The gang members charged in this investigation displayed once again their disregard for obeying the law and for human life, allegedly stabbing and beating another inmate while incarcerated for other crimes. The FBI New York Safe Streets Task Forces work each day to disrupt and dismantle MS-13 in our communities, so their dangerous and criminal actions don’t harm innocent people.”
“Targeting and dismantling gangs and crews, and preventing the violence so often associated with their illegal activities, continues to be among the highest priorities for the NYPD and our law enforcement partners,” stated NYPD Commissioner O’Neill. “By precisely targeting the relatively small percentage of people responsible for committing much of the violence in New York, we are making the safest large city in America even safer. We remain relentless in our efforts to identify, arrest, and prosecute anyone who involves themselves in such behavior whether it is on our streets or in our jails.”
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a maximum of 20 years’ imprisonment.
Today’s indictment is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 murders in the district, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by our law enforcement partners including the FBI’s Safe Streets Task Force, comprising agents and officers of the FBI and NYPD.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nadia E. Moore and Nadia I. Shihata are in charge of the prosecution.
Mississippi Accountant Convicted of Tax FraudRead the Press Release
WASHINGTON – A federal jury today in Hattiesburg, Mississippi convicted certified public accountant Carl Nicholson of conspiracy to defraud the United States, six counts of aiding in the preparation of false tax returns, and four counts of filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and United States Attorney Mike Hurst for the Southern District of Mississippi.
“Today, justice prevailed, the rule of law was enforced, and a long-time tax cheat was held accountable for his crimes,” said U.S. Attorney Hurst. “I commend our prosecutors, agents, and state investigators for their tireless work in bringing this individual and others like him to justice. Today’s verdict proves that no one is beyond the reach of the long arm of the law. We will continue to work with our partners and use every resource available to root out fraud and corruption throughout our state.”
According to court documents and evidence presented at trial, from 2012 to 2014, Nicholson conspired with a client to falsely classify personal expenses as business expenses and filed false tax returns on the client’s behalf. On one occasion, Nicholson directed that a $250,000 payment to one of the client’s personal trusts be classified as a business expense. Nicholson was also found guilty of filing his own false personal income tax returns for 2012 through 2015. Specifically, he falsely claimed expenses, failed to report income, and under-reported the gain on the sale of his accounting firm Nicholson & Company.
Sentencing has been scheduled for May 23, 2019. At sentencing, Nicholson faces a maximum of five years in prison for the conspiracy charge and three years for each charge of filing false tax returns and aiding in the preparation of false tax returns. He also faces supervised release and restitution.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Hurst thanked special agents of Internal Revenue Service – Criminal Investigation and investigators with the Mississippi Auditor’s Office, who investigated the case, and Assistant United States Attorney Jay Golden and Trial Attorney Kim Shartar, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Libby man sentenced for illegally possessing firearmsRead the Press Release
MISSOULA—Libby resident Joshua David Hoffman was sentenced on Friday to eight months in prison and three years of supervised release for illegally possessing three firearms, U.S. Attorney Kurt Alme said.
Hoffman, 43, pleaded guilty in October to being a felon in possession of a firearm.
Chief U.S. District Judge Dana L. Christensen presided. He also ordered the forfeiture of firearms and ammunition seized in the case.
Prosecutors said that on June 9, 2018, law enforcement pulled over Hoffman, who admitted he had firearms in his possession. In a search of his vehicle, law enforcement found a 9 mm pistol, a .22 caliber rifle and a .40 caliber pistol, along with 216 rounds of assorted ammunition. Hoffman, having been previously convicted of a felony, was prohibited from possessing firearms.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lincoln County Sheriff’s Office.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Lexington Man Found Guilty of Conspiracy and Attempted Possession of MarijuanaRead the Press Release
LEXINGTON, Ky. — Brandon Hayden, 37, of Lexington, was found guilty today, by a federal jury, of conspiracy to possess with the intent to distribute 50 kilograms or more of marijuana and attempt to possess with the intent to distribute 50 kilograms or more of marijuana.
The jury returned the verdict after a 2-day trial. The evidence established that on July 17, 2018, Hayden was at the Love’s truck stop in Richmond, Kentucky to meet an anticipated delivery of 200 pounds of marijuana. Earlier in the month, Hayden had received multiple photographs of bags and bales of marijuana buds on his cellular telephone, with texts indicating that marijuana was on its way to him. On July 17, 2018, the marijuana was being hauled in multiple duffle bags, inside the cab of a tractor-trailer that had picked up the marijuana from El Paso, Texas and South Carolina. Hayden met Vincent Raglin, a co-defendant who pleaded guilty to the conspiracy, in the parking lot of the truck stop. Hayden and Raglin then drove to the spot where the tractor-trailer was parked. After Raglin got out of his vehicle and collected the first duffle bag, the two were arrested. The total weight of the marijuana was 91.9 kilograms.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Christopher Evans, Special Agent in Charge, Drug Enforcement Administration; Richard Sanders, Commissioner, Kentucky State Police; and Charles Matthews, Chief of Police, Pineville Police Department, jointly announced the jury’s verdict.
Hayden is currently scheduled to appear for sentencing, in Lexington, on May 13, 2019 at 10:30 a.m. Hayden faces a maximum prison sentence of 30 years. However, his sentence will be imposed by the Court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
The investigation was conducted by the Drug Enforcement Administration, Kentucky State Police, and the Pineville Police Department.
Law Enforcement Officers Join Lewiston High School Students for a Day of LearningRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced today that on February 12, 2019, the U.S. Attorney’s Office for the District of Maine, the Androscoggin County District Attorney Office, the Lewiston Police Department, and the FBI will present the TRUST (Teach mutual Respect and Understanding through SimulaTion) Program to about 40 Lewiston High School students at The Green Ladle, 156 East Ave., Lewiston.
“The TRUST Program arose out of the belief that young people and law enforcement officers can benefit from spending time together, discussing challenges and perspectives on law enforcement, and better understanding each other,” said U.S. Attorney Frank. “It is modeled on similar programs run by U.S. Attorneys’ Offices that have been successful in Alabama (Bridging the Gap) and Florida (Building Lasting Relationships).”
The half-day Program will start at 8:30 a.m. and conclude at 1:00 p.m. It will include: (1) presentations about investigating, prosecuting, and sentencing in criminal cases; (2) student role-playing exercises involving a call for service for a domestic disturbance complaint and a traffic stop; and (3) use of force simulations.
OPEN PRESS (except for the use of force simulations; simulator equipment will be made available to the press at the conclusion of the simulations). Students with media permissions will be identified.
NOTE: All media must RSVP to [email protected], arrive by 8:15 a.m. and possess a government-issued photo I.D. (such as a driver’s license) as well as valid media credentials.
The U.S. Attorney's Office for the District of Maine is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. For more information about the U.S. Attorney’s Office for the District of Maine, visit https://www.justice.gov/usao-me
Justice Department Files First of its Kind Action to Stop Tennessee Pharmacies’ Unlawful Dispensing of OpioidsRead the Press Release
The Justice Department announced an action today to stop two pharmacies, their owner, and three pharmacists from dispensing controlled substance medications, including powerful opioids that have been linked to abuse and diversion. The action is part of a coordinated effort by the Department’s Prescription Interdiction & Litigation (PIL) Task Force to deploy all available criminal, civil, and regulatory tools to reverse the tide of opioid overdoses in the United States. Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division, U.S. Attorney Don Cochran for the Middle District of Tennessee, D. Christopher Evans, Special Agent in Charge of the U.S. Drug Enforcement Administration’s (DEA) Louisville Field Division, and Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services (HHS), Office of Inspector General made the announcement.
In a civil complaint unsealed today in the Middle District of Tennessee, the United States alleges that Celina, Tennessee, pharmacies, Oakley Pharmacy, Inc., d/b/a Dale Hollow Pharmacy (Dale Hollow) and Xpress Pharmacy of Clay County (Xpress), the pharmacies’ owner, Thomas Weir, and pharmacists John Polston, Michael Griffith, and Larry Larkin were dispensing, and billing Medicare for, prescriptions in violation of the Controlled Substances Act and the False Claims Act. According to the United States’ complaint, the defendants’ unlawful dispensing of opioids has been tied to the deaths of at least two people and numerous others have been treated at hospitals for serious overdoses within a short time of obtaining controlled substances from the pharmacies.
“Pharmacies and pharmacists have a legal obligation to dispense controlled substances properly, so as not to put patients’ health at risk,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department of Justice will use every available tool to stop individuals and entities responsible for the improper distribution of controlled substances.”
The complaint alleges that the pharmacies and pharmacists filled numerous prescriptions for controlled substances outside the usual course of professional practice and in violation of the pharmacists’ corresponding responsibility to ensure that prescriptions were written for a legitimate medical purpose. Specifically, the complaint alleges that the defendants routinely dispensed controlled substances while ignoring numerous “red flags” or warning signs of diversion and abuse, such as unusually high dosages of oxycodone and other opioids, prescriptions for opioids and other controlled substances in dangerous combinations, and patients travelling extremely long distances to get and fill prescriptions. The complaint further asserts that the pharmacies falsely billed Medicare for illegally dispensed prescriptions.
Judge Aleta A. Trauger of the U.S. District Court for the Middle District of Tennessee issued the temporary restraining order. Along with injunctive relief, the United States seeks civil monetary penalties and treble damages.
“The civil complaint unsealed today contains disturbing allegations of high-risk dispensing practices by the defendants,” said U.S. Attorney Don Cochran. “Given the national public health emergency resulting from the opioid crisis in our nation, the U.S. Attorney’s Office will use every resource at our disposal, including seeking injunctive relief and civil monetary penalties as we have here, to stop pharmacies and pharmacists from continuing to abuse their dispensing authority to fuel this epidemic.”
“The action supported today by the Drug Enforcement Administration should serve as a warning to those in the pharmacy industry who choose to put profit over customer safety,” said D. Christopher Evans, Special Agent in Charge of DEA’s Louisville Field Division, which covers Tennessee, Kentucky, and West Virginia. “Pharmacists serve on the front lines of America’s opioid epidemic and they share responsibility with physicians to protect those whom they serve from the dangers associated with prescription medications. We will be vigilant in holding them accountable,” Evans added.
“The opioid epidemic has been devastating for Tennessee and neighboring states,” said Derrick L. Jackson, Special Agent in Charge at the HHS Office of Inspector General. “Physicians and pharmacists have a dual responsibility to ensure that these medications are only prescribed and dispensed when they are medically necessary.”
The United States is represented by Trial Attorneys Ross Goldstein and Donald Lorenzen of the Justice Department’s Consumer Protection Branch, Assistant U.S. Attorney Ellen Bowden McIntyre for the Middle District of Tennessee, and Attorney Scott Dahlquist for the DEA’s Office of Chief Counsel. This investigation is being conducted by the DEA and the HHS Office of Inspector General.
A complaint is merely an allegation and there has been no determination of liability.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Middle District of Tennessee, visit its website at https://www.justice.gov/usao-mdtn.
Justice Department Files First of its Kind Action to Stop Tennessee Pharmacies' Unlawful Dispensing of OpioidsRead the Press Release
NASHVILLE, Tenn. – February 8, 2019 - The Justice Department announced action today to stop two pharmacies, their owner, and three pharmacists from dispensing controlled substance medications, including powerful opioids that have been linked to abuse and diversion. This action is part of a coordinated effort by the Department’s Prescription Interdiction & Litigation (PIL) Task Force to deploy all available criminal, civil, and regulatory tools to reverse the tide of opioid overdoses in the United States. U.S. Attorney Don Cochran for the Middle District of Tennessee, Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division, D. Christopher Evans, Special Agent in Charge of the U.S. Drug Enforcement Administration’s (DEA) Louisville Field Division, and Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services (HHS), Office of Inspector General made the announcement.
In a civil complaint unsealed today in the Middle District of Tennessee, the United States alleges that Celina, Tennessee, pharmacies, Oakley Pharmacy, Inc., d/b/a Dale Hollow Pharmacy (Dale Hollow) and Xpress Pharmacy of Clay County (Xpress), the pharmacies’ owner, Thomas Weir, and pharmacists John Polston, Michael Griffith, and Larry Larkin were dispensing, and billing Medicare for, prescriptions in violation of the Controlled Substances Act and the False Claims Act. According to the United States’ complaint, the defendants’ unlawful dispensing of opioids has been tied to the deaths of at least two people and numerous others have been treated at hospitals for serious overdoses within a short time of obtaining controlled substances from the pharmacies.
“The civil complaint unsealed today contains disturbing allegations of high-risk dispensing practices by the defendants,” said U.S. Attorney Don Cochran. “Given the national public health emergency resulting from the opioid crisis in our nation, the U.S. Attorney’s Office will use every resource at our disposal, including seeking injunctive relief and civil monetary penalties as we have here, to stop pharmacies and pharmacists from continuing to abuse their dispensing authority to fuel this epidemic.”
The complaint alleges that the pharmacies and pharmacists filled numerous prescriptions for controlled substances outside the usual course of professional practice and in violation of the pharmacists’ corresponding responsibility to ensure that prescriptions were written for a legitimate medical purpose. Specifically, the complaint alleges that the defendants routinely dispensed controlled substances while ignoring numerous “red flags” or warning signs of diversion and abuse, such as unusually high dosages of oxycodone and other opioids, prescriptions for opioids and other controlled substances in dangerous combinations, and patients travelling extremely long distances to get and fill prescriptions. The complaint further asserts that the pharmacies falsely billed Medicare for illegally dispensed prescriptions.
Judge Aleta A. Trauger of the U.S. District Court for the Middle District of Tennessee issued the temporary restraining order. Along with injunctive relief, the United States seeks civil monetary penalties and treble damages.
“Pharmacies and pharmacists have a legal obligation to dispense controlled substances properly, so as not to put patients’ health at risk,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department of Justice will use every available tool to stop individuals and entities responsible for the improper distribution of controlled substances.”
“The action supported today by the Drug Enforcement Administration should serve as a warning to those in the pharmacy industry who choose to put profit over customer safety,” said D. Christopher Evans, Special Agent in Charge of DEA’s Louisville Field Division, which covers Tennessee, Kentucky, and West Virginia. “Pharmacists serve on the front lines of America’s opioid epidemic and they share responsibility with physicians to protect those whom they serve from the dangers associated with prescription medications. We will be vigilant in holding them accountable,” Evans added.
“The opioid epidemic has been devastating for Tennessee and neighboring states,” said Derrick L. Jackson, Special Agent in Charge at the HHS Office of Inspector General. “Physicians and pharmacists have a dual responsibility to ensure that these medications are only prescribed and dispensed when they are medically necessary.”
A complaint is merely an allegation and there has been no determination of liability.
The United States is represented by Assistant U.S. Attorney Ellen Bowden McIntyre for the Middle District of Tennessee; Trial Attorneys Ross Goldstein and Donald Lorenzen of the Justice Department’s Consumer Protection Branch; and Attorney Scott Dahlquist for the DEA’s Office of Chief Counsel. This investigation is being conducted by the DEA and the HHS Office of Inspector General.
A complaint is merely an allegation and there has been no determination of liability.
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Judge sentences Lame Deer woman to prison for methRead the Press Release
BILLINGS—A Lame Deer woman convicted in a large methamphetamine trafficking conspiracy that brought multi-pound quantities to Montana from California was sentenced on Thursday to nine months in prison, two years of house arrest and five years of supervised release, U.S. Attorney Kurt Alme said.
Brandy Joy Pretty On Top, 31, pleaded guilty in July 2018 to possession with intent to distribute meth.
U.S. District Judge Susan Watters presided.
An investigation began in 2015 into a meth trafficking organization that was bringing multi-pound quantities of the drug from the San Jose area in California to Montana for distribution. The investigation ultimately led to Pretty On Top, who was identified as a local dealer on the Northern Cheyenne Indian Reservation. Pretty On Top got meth from one of the San Jose area suppliers, who traveled to Montana.
Assistant U.S. Attorney Lori Suek prosecuted the case, which was investigated by the FBI Big Sky Safe Streets Task Force and Eastern Montana High Intensity Drug Trafficking Area Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Jamaican National Sentenced to 71 Months in Prison for Lottery Fraud/Extortion SchemeRead the Press Release
WASHINGTON – Keniel Thomas, 29, a Jamaican national, was sentenced today to 71 months in prison for trying to extort money from a couple in Washington D.C., who he tried to trick into believing they won the Mega Millions lottery, announced U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
Thomas, also known as “David Morgan,” pled guilty on Oct. 26, 2018, in the U.S. District Court for the District of Columbia to interstate communication with the intent to extort. He was sentenced by the Honorable Chief Judge Beryl A. Howell. Following completion of his prison term, Thomas will face deportation proceedings.
According to the government’s evidence, Thomas, posing as “David Morgan,” placed a call on June 9, 2014 to a man who lived and worked in the District of Columbia. Thomas told the man that he was the head of Mega Millions and that the man was the winner of $15.5 million and a 2014 Mercedes Benz. Thomas told the man that the man needed to pay $50,000 to cover the taxes before the award was provided to him. He also told the man that he had information about his employment history. Shortly after the call, the man contacted the FBI.
The following day, the man placed a call to “David Morgan” that was recorded by the FBI. In it, Thomas again told the man that he worked for Mega Millions. This time, he said the man was the first-place winner of a prize valued at $72 million and that included a 2014 Mercedes Benz with a year of free insurance. Once again, Thomas said that the man needed to send $50,000 to him to cover the taxes on the prizes.
Over the course of the next month, Thomas made numerous calls to the man in attempts to get the money. He also reached the man’s wife and threatened violence if the money was not paid. Among other things, he claimed that he had done surveillance on the couple’s home.
An FBI investigation led to the identification of Thomas. A criminal complaint was filed against Thomas in July 2014. He was arrested on Dec. 18, 2017, after he traveled by plane from Montego Bay, Jamaica, to John F. Kennedy International Airport in New York. He has remained in custody ever since.
In announcing the sentence, U.S. Attorney Liu and Assistant Director in Charge McNamara commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the work of those who handled the case for the U.S. Attorney’s Office, including Assistant U.S. Attorney Peter C. Lallas and former Assistant U.S. Attorney Ephraim (Fry) Wernick. Finally, they commended the work of Assistant U.S. Attorneys David J. Gorman and Kathryn L. Rakoczy, who investigated and prosecuted the matter.
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Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Joseph Demond Towers, 37, of Jackson, pled guilty today before Chief U.S. District Judge Daniel P. Jordan III to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst, and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation (FBI).
On April 5, 2018, a concerned citizen called 911 to report that a man was sitting outside a residence on a sofa and displaying a weapon. The man had pointed the weapon at a female who drove by the residence. When officers with the Jackson Police Department arrived, Towers admitted to having a gun in his pocket. Towers had several prior felony convictions out of Hinds County.
Towers will be sentenced by Judge Jordan on May 10, 2019, and faces a maximum penalty of ten years in prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation and the Jackson Police Department. It is being prosecuted by Assistant United States Attorney Mary Helen Wall.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned this week before U.S. Magistrate judges and indictments handed down by the Grand Jury were unsealed. Indictments are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 5 was:
TORI LASHAWN SMITH, 24, Billings, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute heroin and possession with intent to distribute methamphetamine. Smith was detained. If convicted of the most serious crime, Smith faces a minimum mandatory 10 years to life in prison, a $10 million fine and a minimum five years of supervised release. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 18-153.
Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch and pleading not guilty on Feb. 6 was:
BRANDY CHRISTINE ELLENWOOD, 29, of Polson, on charges of acquire controlled substance by fraud, deception or subterfuge. Ellenwood was released pending trial. If convicted of the most serious crime, Ellenwood faces a maximum four years in prison, a $250,000 fine and one year of supervised release. The case was investigated by the Montana Criminal Investigation Division and the federal Drug Enforcement Administration. Pacer case reference. 19-2.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Hyannis Woman Pleads Guilty to Smuggling CocaineRead the Press Release
BOSTON – A Hyannis woman pleaded guilty today in federal court in Springfield in connection with a cocaine smuggling conspiracy.
Cristina M. Delle Femine, 28, pleaded guilty to one count of conspiring to import cocaine and one count of conspiring to possess with intent to distribute cocaine. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 6, 2019. Delle Femine was arrested in Maine on Oct. 23, 2017, and appeared in federal court in Springfield later that month.
Around May 2017, Delle Femine conspired to import cocaine into the United States from Jamaica and conspired to possess with the intent to distribute cocaine.
The charges of conspiracy to import cocaine and conspiracy to possess with intent to distribute cocaine each provide for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office is prosecuting the case.
Honduran National Charged with Misuse of a Social Security Number and Illegal Re-Entry of a Deported AlienRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced yesterday that ORLIN DANERI SUAZO-SUAZO, age 29, was charged in a two-count indictment for misuse of a Social Security number and reentry of deported alien, in violation of 42 U.S.C. § 408(a)(7)(B) and 8 U.S.C. § 1326(a), respectively.
According to the indictment, ORLIN DANERI SUAZO-SUAZO (“Suazo”), used a Social Security number that did not belong to him to illegally obtain a Louisiana’s Driver’s License. The indictment also indicated Suazo reentered the United States after he was previously deported on November 3, 2006.
If convicted, SUAZO faces a maximum term of imprisonment of five years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.
U. S. Attorney Strasser reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
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Honduran National Charged with Illegal Re-Entry of a Deported AlienRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced yesterday that EDWIN RAMON HERNANDEZ-ELVIR, age 39, was charged in a one-count indictment for reentry of deported alien, in violation of 8 U.S.C. § 1326(a).
According to the indictment, EDWIN RAMON HERNANDEZ-ELVIR reentered the United States after he was previously deported on January 2, 2003.
If convicted, EDWIN RAMON HERNANDEZ-ELVIR faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Strasser reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Irene Gonzalez is in charge of the prosecution.
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Hell's Angel "Full Patch" Member Detained on Meth Trafficking & Firearm ChargesRead the Press Release
PROVIDENCE, RI – A “full patch” member of the Rhode Island chapter of the Hell's Angels Motorcycle Club has been ordered detained in federal custody on a criminal complaint charging him with trafficking methamphetamine and cocaine and on firearms charges.
Douglas Leedham, 54, of North Providence, R.I., was detained Thursday by members of the FBI Rhode Island Safe Street Task Force during the execution of a court-authorized search of his residence. The search was conducted as part of a Project Safe Neighborhoods investigation into Leedham’s alleged drug trafficking activities.
Mr. Leedham was charged by way of a federal criminal complaint with possession with intent to distribute methamphetamine, possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking crime, and three counts of felon in possession of a firearm.
Leedham was ordered detained in federal custody following his initial appearance today before U.S. District Court Magistrate Judge Lincoln D. Almond.
The arrest and detention of Douglas Leedham are announced by United States Attorney Aaron L. Weisman and Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
According to court documents, during the course of the court-authorized search of Leedham’s residence, members of the FBI Safe Streets Task Force seized a total of 44 grams of suspected methamphetamine, 19 grams of cocaine, two handguns and a 12 gauge shotgun, two body armor vests, 35 knives, four hatchets, five expandable and four flashlight batons, a set of brass knuckles, $6,422 in cash, and assorted items used in the packaging and distribution of drugs.
Found throughout the residence were clothing, memorabilia, and documents, which allegedly established Leedham’s membership in the Hell's Angels Motorcycle Club.
According to court records, Leedham was convicted in Rhode Island Superior Court in September 2013 of carrying a pistol without a license. He was sentenced to a term of five years in prison - suspended with five years’ probation.
A federal criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
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.
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Haitian Citizen Sentenced for Voting by an Alien in the 2016 General ElectionRead the Press Release
NEW BERN – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that DIEUDONNE SOIFILS, age 72, a citizen of Haiti and resident of Beaufort County, North Carolina, was sentenced by United States District Court Judge Louise Wood Flanagan to twelve (12) months’ probation and a $25 special assessment. SOIFILS’ sentencing follows his guilty plea to voting by an alien.
According to court records, SOIFILS was registered to vote in 2012 after executing a voter registration form claiming to be a United States citizen under penalty of perjury.
SOIFILS was assigned a polling station in Beaufort County, North Carolina. SOIFILS voted in the 2012 and 2016 General Elections held in part for the purpose of electing a candidate for the office of President, Vice-President, and Member of the House of Representatives.
The case was investigated by the Document and Benefit Fraud Task Force (DBFTF) in the Eastern District of North Carolina lead by Immigration and Customs Enforcement - Homeland Security Investigations, and assisted by Enforcement Removal Operations, and United States Citizenship and Immigration Services, among other agencies. The investigation as to voting fraud is ongoing.
Green Bay Man Indicted for Threatening Telephone Calls to Daycare CentersRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on February 5, 2019, a federal grand jury issued an indictment against Michael J. Propst (age: 46) of Green Bay, Wisconsin.
The six-count indictment alleges that Propst placed interstate telephone calls to daycare centers in Indiana and Iowa with “the intent annoy, abuse, threaten, and harass a person” at those daycare centers contrary to Title 47, United States Code, Section 223(a)(1)(C). It further alleges that Propst’s telephone calls contained “threats to injure the person of another” in violation of Title 18, United States Code, Section 875(c). If convicted of all charges, Propst faces up to 21 years imprisonment and up to $1.5 million in fines, or both.
This case was investigated by the Federal Bureau of Investigation and the Green Bay Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Gates Man Who Attempted to Lure A Teenager for Sex Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dillon T. Boyington, 35, of Gates, NY, pleaded guilty, before U.S. District Judge Elizabeth A. Wolford, to attempted online enticement of a minor. The charge carries a minimum penalty of 10 years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that the defendant utilized a social media application in an attempt to meet a 14 year-old child for sex. As he traveled to meet such child on October 24, 2018, Boyington was intercepted by members of the New York State Police. Upon his arrest, the defendant was found to be in possession of condoms and candy, which he intended to give to the child.The plea is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton, and the Rochester Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for May 15, 2019, before Judge Wolford.
Franklin County Man Sentenced to 25 Years’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Michael Cobb, age 49, of Waynesboro, Pennsylvania was sentenced on February 6, 2019, by United States District Judge Sylvia H. Rambo to 300 months’ imprisonment followed by a 6-year term of supervised release after his conviction on firearms possession and drug trafficking offenses.
According to United States Attorney David J. Freed, in April 2018, a federal jury convicted Cobb of three counts of unlawful possession of five separate firearms and of being a previously convicted felon who was not permitted to possess firearms. The jury also found Cobb guilty of possession with intent to distribute cocaine hydrochloride (powder cocaine), cocaine base (crack cocaine), and heroin.
In imposing the 25-year sentence, Judge Rambo found Cobb to be an armed career criminal and a career offender. She imposed the 25-year sentence on each of the six counts concurrently and also ordered the sentence to run concurrent with a 41- to 100-year sentence Cobb received in the Franklin County Court of Common Pleas for conduct related to his federal charges.
The investigation was conducted by the Waynesboro Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorneys James T. Clancy and Carlo D. Marchioli prosecuted 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 case also is part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Four from Toledo indicted in federal court for firearms crimesRead the Press Release
Four men from Toledo were indicted for firearms crimes.
Emanuel Riley, 27, and Sevario Whitaker, 36, were charged with with theft from a federal firearms licensee, possession of silencers not registered to them, possession of stolen firearms, and possession of firearms after being convicted of a felony.
According to documents filed in the case:
A federal firearms licensee doing business as Towers Armory was burglarized on November 19, 2018. Approximately 46 firearms, six suppressors and four gun bags were missing from the store. Video surveillance from the store showed two men entered the store at approximately 3:24 a.m. after gaining access through the ventilation system on the roof and began removing firearms. They returned to the store several times in the early morning hours and continued removing firearms.
Investigators obtained additional footage from a nearby business that showed the two men entered a Toyota Camry and drove away. A Toledo police detective recognized the vehicle as one that was used by Riley.
The vehicle was towed from Riley’s mother’s house and Oregon police executed a state search warrant. Inside the vehicle they recovered gloves, a hat, a face mask and Friday the 13th-style mask consistent with what the burglars on the store surveillance footage were wearing. Whitaker was arrested on an outstanding warrant and also found to be wearing a sweatshirt consistent with what one of the burglars was wearing.
DNA testing revealed Whitaker’s DNA could not be excluded from a red pry bar left behind at the burglary scene and the DNA of both men could not be excluded from DNA taken from the face mask recovered from the Camry.
A search of cell tower records indicates both Riley and Whitaker’s phones connected with a cell tower within one mile of the firearms store around the time of the burglary.
Darius Travell Johnson, 30, was charged with being a felon in possession of a firearm. Johnson possessed a Taurus PT-111 pistol on January 16, despite previous convictions for felonious assault and robbery, according to the indictment.
Robert Louis Winston, 58, of Toledo, was charged with being a felon in possession of a firearm. Winston possessed a Smith and Wesson .380-caliber pistol on January 9 despite previous convictions for aggravated burglary, aggravated robbery, trafficking in heroin and numerous other crimes, according to the indictment.
These cases are being prosecuted as part of "Project Safe Neighborhoods," a gun violence reduction program administered by the Department of Justice, U.S. Attorney's Office for the Northern District of Ohio. The program targets armed criminals for federal prosecution.
These cases are being prosecuted by Assistant U.S. Attorney Matthew D. Simko following investigations by the Oregon Police Department, Toledo Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives (Riley and Whitaker), Sylvania Township Police Department, the Federal Bureau of Investigation, and the ATF (Johnson and Winston).
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Former officer at Richwood Correctional Center pleads guilty for role in conspiracy to cover up physical assault of five inmatesRead the Press Release
MONROE, La. – The Justice Department and the U.S. Attorney’s Office announced today that Quintail Credit, a former officer at the Richwood Correctional Center, pleaded guilty in federal court yesterday for his role in a conspiracy to cover up the physical assault of five inmates by officers. Credit, 26, of Winsboro, Louisiana, pleaded guilty to conspiring with other officers to falsify documents with intent to obstruct and influence the investigation of a matter within federal jurisdiction. Assistant Attorney General Eric Dreiband for the Civil Rights Division and U.S. Attorney for the Western District of Louisiana David C. Joseph made the announcement.
“Any officer who conspires to cover up any crime or physical assault against an inmate violates federal law and will be held accountable under the law,” said Assistant Attorney General Eric Dreiband. “The Justice Department will continue to prosecute unlawful misconduct by correction officers.”
“Criminal conduct by correctional officers will not be tolerated in the Western District of Louisiana,” said U.S. Attorney David C. Joseph. “Correctional officers deserve our respect for the jobs they do, but we must also hold them accountable when they willfully break the law and cover up the abuse of inmates.”
According to his guilty plea, Credit worked as a correctional officer at the Richwood Correctional Center in Richwood, Louisiana, where on Oct. 30, 2016, he and other officers abused inmates and then conspired to cover it up. According to Mr. Credit, he and other officers sprayed a chemical agent directly in the faces and eyes of five inmates while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Following that abuse, Mr. Credit and the other officers conspired to hide their conduct by submitting false reports.
Roderick Douglas, a former supervisor at the Richwood Correctional Center, pleaded guilty in federal court on January 31, 2019 for his role in the conspiracy to violate the civil rights of five inmates. Sentencing for Douglas is scheduled for June 5, 2019.
The count of conviction carries a maximum penalty of five years in prison and a criminal fine of up to $250,000. Quintail Credit is scheduled to be sentenced on May 17, 2019 by U.S. District Judge Terry A. Doughty of the Western District of Louisiana, who accepted the plea.
The case was investigated by the Monroe Division of the FBI. Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office, Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, are prosecuting the case.
Former Virginia Federal Employee Sentenced to More Than 17 Years in Prison for Producing Child PornographyRead the Press Release
A Woodbridge, Virginia man was sentenced today to 210 months in prison followed by 10 years of supervised release for producing child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office and Chief Michael L. Brown of the Alexandria Police Department made the announcement.
David Edward De Vere, 53, a former Equal Employment Specialist at the U.S. Patent and Trademark Office, pleaded guilty on Sept. 27, 2018 before U.S. District Judge Liam O’Grady of the Eastern District of Virginia to production of child pornography.
According to admissions made in connection with his guilty plea, De Vere met and began exchanging sexually explicit messages online with a 16-year-old minor living in Colorado in March 2017. During the course of these communications, De Vere induced the minor to take and send him multiple images of the minor engaging in sexually explicit conduct. De Vere also encouraged another adult with access to the minor in Colorado to sexually abuse the minor, and then traveled to Colorado in April 2017 in an unsuccessful attempt to sexually abuse the minor himself.
The case is being investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is comprised of agents of the FBI, U.S. Marshals Service, and detectives from the Prince William County Police, Fairfax County Police, Loudoun County Sheriff’s Office, Metropolitan Police, Alexandria City Police, Arlington County Police, Leesburg Police, Virginia State Police and the Offices of Inspector General of several federal agencies. Trial Attorney William G. Clayman of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Kellen S. Dwyer are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former U.S. Navy Captain Sentenced in Sweeping U.S. Navy Corruption and Fraud ProbeRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714, Robert Huie (619) 546-7053 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – February 8, 2019
SAN DIEGO – Former U.S. Navy Captain Jeffrey Breslau, previously the director of public affairs for the U.S. Pacific Fleet, was sentenced in federal court today to six months in custody for secretly moonlighting as a paid public relations consultant for foreign defense contractor Leonard Glenn Francis.
U.S. District Judge Janis L. Sammartino also fined Breslau $20,000, ordered him to perform 250 hours of community service, and ordered Breslau to pay $65,000 in restitution to the Navy – the amount Francis paid the Navy Captain for insider advice that helped the contractor build a business empire that cost the Navy tens of millions of dollars.
According to the government’s sentencing memorandum, Breslau authored emails and provided talking points for Francis to create relationships with five Navy admirals and win or maintain lucrative Navy contracts for his Singapore-based ship husbanding company, Glenn Defense Marine Asia (GDMA).
Breslau, 52, of Cumming, Georgia, was charged in September 2018 and pleaded guilty in November to one count of criminal conflict of interest, admitting that while he was still employed by the U.S. Navy, Francis paid him more than $65,000 for the public relations consulting services. Francis pleaded guilty in 2015 to bribery and fraud charges, admitting that he presided over a massive, decade-long conspiracy involving scores of U.S. Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes and lavish gifts, including luxury travel, airline upgrades, five-star hotel accommodations, top-shelf alcohol, the services of prostitutes, Cuban cigars, Kobe beef, and Spanish suckling pigs.
Breslau pleaded guilty to a conflict of interest charge. The essence of his crime, prosecutors said, was the prolific use of his specialized skills and privileged position, bestowed upon him by the U.S. Navy, for GDMA’s benefit. “Simply put,” the sentencing memo said, “the defendant sold his fiduciary alliance for $65,000.”
“Breslau was secretly advocating for Leonard Francis behind the backs of his Navy colleagues,” said U.S. Attorney Robert S. Brewer Jr. “Breslau’s deceit was part of an astounding culture of corruption that has been exposed and eliminated as a result of this historic investigation.”
According to admissions made as part of his guilty plea, from October 2009 until July 2012, Breslau was a Captain in the U.S. Navy assigned as Director of Public Affairs for the U.S. Pacific Fleet, headquartered in Pearl Harbor, Hawaii. As part of his duties, Breslau was involved in devising the U.S. Navy’s public affairs communications strategy, and provided public affairs guidance to Pacific Fleet components and other U.S. Navy commands. From August 2012 until July 2014, Breslau was assigned to the Commanding Officer for the Joint Public Affairs Support Element in Norfolk, Virginia, where he was responsible for leading joint crisis communications teams.
Breslau admitted in his plea agreement that from March 2012 until September 2013, while serving in the above roles for the U.S. Navy, he provided Leonard Francis with public relations consulting services, including providing advice on how to respond to issues and controversies related to Francis’s ship husbanding business with the U.S. Navy. These included issues related to port visit costs, allegations of malfeasance such as the unauthorized dumping of waste, disputes with competitors, and issues with Pacific Fleet and contracting personnel.
During the course of his consulting agreement with Francis, Breslau authored, reviewed, or edited at least 33 separate documents; authored at least 135 emails providing advice to Francis; provided at least 14 instances of “talking points” in advance of meetings between Francis and high ranking U.S. Navy personnel; and “ghostwrote” numerous emails on Francis’s behalf to be transmitted to U.S. Navy personnel. During the course of this consulting agreement, Breslau accepted approximately $65,000 from Francis without disclosing the agreement to the U.S. Navy.
In one email exchange with Francis, Breslau described himself as Francis’ “priest” because of the confidential nature of the relationship. In another email, Breslau urged Francis to be discreet in his communications with other Navy officers: “Hope I was blind copied on the note below. Important to not compromise me even to your closest Navy brothers.” Francis replied, “Rest assured your identity is protected.”
In another email, Francis praised Breslau; “I like your ghost writing it truly helps me.” Breslau replied, “Thanks for the compliment with regard to the ghost emails. Glad to help.”
Prosecutors argued that Breslau should serve time in custody for the conflict of interest charge, in part because his deception had a significant impact on the Navy. “The breadth and scope of defendant’s willful illegal conduct in providing consulting services to Francis – in each instance assisting Francis against the U.S. Navy – substantially disrupted the functions of the U.S. Navy,” prosecutors wrote in the sentencing memo.
“In nearly every instance, defendant’s work consisted of advocating for Francis and against the U.S. Navy, against its officers, against its senior civilian leaders, and against its enlisted sailors,” the sentencing memo said.
Breslau is the 18th current or former U.S. Navy official to plead guilty in the expansive corruption and fraud investigation involving Francis and GDMA. So far, 33 defendants have been charged in the U.S. and 22 have pleaded guilty.
The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher, Robert Huie, and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Fraud Section of the Justice Department’s Criminal Division.
DEFENDANT Case Number: 18-CR4208
Captain (retired) Jeffrey Breslau Age: 52 Cumming, Georgia
SUMMARY OF CHARGES
Conflict of Interest, in violation of 18 U.S.C. § § 208(a), 216
Maximum Penalty: 5 years in prison, a $250,000 fine
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Former School Police Officer Sentenced for Filing a False Income Tax ReturnRead the Press Release
On February 6, 2019, a former Palm Beach County School Police Officer was sentenced federally for filing a false income tax return.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent-in-Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Frank Kitzerow, Chief of Police, Palm Beach County School District, made the announcement.
Ronnie Arnest Williams, 57, of West Palm Beach, Florida, previously pled guilty to filing a false personal income tax return for tax year 2017. As part of his plea, Williams was required to surrender his certificate to be a police officer and resigned as a school police officer. Williams had held certificates to be a corrections officer since 1985 and a police officer since 1994 and had worked in law enforcement for approximately 32 years. Williams was sentenced by U.S. District Judge Robin L. Rosenberg to time served and 12 months of supervised release.
According to the court docket, including information presented to the court at the time Williams entered his guilty plea, the defendant contacted a parent of a child at the school where he was employed as a safety officer, to obtain the names of minor children he could claim as dependents on his pending 2017 personal income tax return. Williams wanted two children’s names and social security numbers to claim as dependents so that his refund for the 2017 tax year would be increased. Law enforcement was notified of Williams desire to defraud the IRS.
In order to facilitate the investigation, Williams, was provided, by the FBI, with false names and social security numbers that he used when filing his return. The IRS received the false tax return that claimed a refund of more than $5,000 greater than that which Williams was entitled and promptly rejected the filing as the social security numbers did not match the ages of the children being claimed. Immediately after the rejection, Williams filed a personal income tax return that did not claim any dependents.
During this tax season, citizens should be aware of the extensive investigative efforts conducted by federal law enforcement agents of the Internal Revenue Service, the FBI and other agencies into the crime of filing false income tax returns.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, IRS-CI and the Palm Beach County School Police Department in this matter. This case was prosecuted by Assistant U.S. Attorney Ellen L. Cohen.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Ravn Alaska Supervisor Sentenced for Stealing Mail from U.S. Postal ServiceRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a former Ravn Alaska supervisor has been sentenced for stealing mail, including Apple computers destined for school districts in Alaska villages, from the U.S. Postal Service.
Breadoflife “Presley” Faiupu, 37, of Anchorage, was sentenced today by U.S. District Judge Sharon L. Gleason to serve five years of probation, with six months of community confinement in a halfway house. In addition to his sentence, Faiupu was also ordered to pay $90,000 in restitution, joint and severally with his co-defendants. In October 2018, Faiupu previously pleaded guilty to one count of conspiracy and one count of mail theft.
During the course of the conspiracy, Faiupu and his co-defendant, Congress Lepou, abused their positions as supervisors at Ravn Alaska to steal computers from the mail, and then recruited those they supervised to help find buyers for the stolen computers. The investigation further revealed that Faiupu and Lepou would then share the proceeds from the sales with those they were tasked to supervise, thus ensuring their silence.
Specifically, from March 2015 to April 2017, Faiupu and Lepou used Ravn Alaska’s supervisor truck – intended for the transportation of mail from the U.S. Postal Service facility to Ravn airplanes for delivery to Alaska villages – to take articles stolen from the mail and drive them to the Ravn employee parking lot to load into their personal vehicles. Faiupu and Lepou recruited ramp agents Hubert Barte, Paulo Maae, Rogelio Daquis, as well as former ramp agent Harold Velicaria, to help find buyers for the stolen Apple computers. Lepou and Faiupu would then receive cash from Barte, Maae, Daquis, and Valicaria for the stolen computers, before sharing the proceeds.
During the course of the conspiracy, Faiupu and Lepou stole approximately 60 Apple computers from the mail. The total approximate retail value of stolen Apple computers attributable to Faiupu is $90,000. The majority of those computers were intended for delivery to school districts in Alaska villages. Lepou is scheduled to be sentenced on March 13, 2019, at 1:30 p.m.
Judge Gleason noted that the seriousness of the offense was based on the impact to the children who were waiting for computers to be delivered to rural school districts, but were instead stolen by Faiupu and his co-defendants and sold for a profit.
The U.S. Postal Service Office of Inspector General (USPS-OIG) and the U.S. Postal Inspection Service (USPIS) conducted the investigation leading to the successful prosecution of this case. The Alaska State Trooper Technical Crimes Unit assisted in the investigation. This case was prosecuted by Assistant U.S. Attorney Aunnie Steward.
Former Property Manager Sent to Prison for Defrauding Homeowner AssociationsRead the Press Release
PHOENIX – Harlow White, 77, of Gilbert, Ariz. was sentenced today by U.S. District Judge John J. Tuchi to 15 months in prison and ordered to pay $291,420 in restitution. White had previously pleaded guilty to money laundering for using stolen client funds to enrich himself. White will self-surrender to custody at a date to be determined by the court.
White was the President and CEO of Eagle Property Management, Inc., a property management company whose clients included Homeowners Associations throughout the metropolitan area. In 2005, ownership transferred to White’s daughter and the company began operating as EPMI. Between January 2010 and May 2014, EPMI - with White’s knowledge stole at least $1.2 million directly from HOA clients’ bank accounts. The stolen money was used, in part, to cover approximately $300,000 in personal charges on White’s American Express credit card.
“Harlow White abused the trust of the clients he was supposed to serve, using their money to pay for his own personal expenses,” said First Assistant U.S. Attorney Elizabeth A. Strange. “The U.S. Attorney’s Office is committed to protecting the community by prosecuting financial crimes like these, and today’s prison sentence will serve as a warning to business owners who may be considering illegal schemes.”
“This defendant and his co-conspirators abused their positions for their own personal benefit by taking advantage of hundreds of homeowners throughout the Valley,” said Rodney Wellman, Acting Special Agent in Charge, U.S. Secret Service Phoenix Field Office. “Today’s sentencing is a reminder that the Secret Service is committed to aggressively investigating and pursuing financial crimes.”
“This is yet another example of a businessperson knowingly using a company bank account to pay his personal expenses,” stated IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez Jr. “The sentencing of Mr. White will serve to discourage other business owners from doing the same while delivering justice to those who do business in an ethical manner."
The investigation in this case was conducted by U.S. Secret Service and Internal Revenue Service-Criminal Investigation. The prosecution was handled by Monica B. Edelstein, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-01228-JJT
RELEASE NUMBER: 2019-009_White
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Owner of Stenotype Institute of Jacksonville Sentenced to Prison and Ordered to Pay over $288,000 in Restitution to Former Students and U.S. Department of EducationRead the Press Release
Jacksonville, Florida – U.S. District Judge Harvey S. Schlesinger has sentenced Gloria Wiley (73, Danville, KY) to one year and one day in federal prison for failing to refund federal student aid money, commonly referred to as Stafford Loans and Pell Grants. The court also ordered Wiley to pay $288,875.92 in restitution to former students of Stenotype Institute, the U.S. Department of Education, and the U.S. Department of Veterans Affairs. Wiley had pleaded guilty on November 13, 2018.
According to court documents, Wiley was the owner of Stenotype Institute of Jacksonville, Inc.—a Jacksonville-based stenography school that provided professional education to individuals pursuing stenography careers, including court reporting and medical transcription. Stenotype was authorized to receive federal student aid funds from the U.S. Department of Education on behalf of its students to cover tuition, fees, and living expense stipends. Excess funds drawn on behalf of students were required to be refunded to the U.S. Department of Education or to the student within 45 days.
Beginning in June 2015, instead of refunding the excess funds, Stenotype began tracking the amounts owed in a spreadsheet. Meanwhile, Wiley continued to draw funds from the school for personal use. In total, Wiley and Stenotype held approximately $290,000 in refunds due to the U.S. Department of Education and to former students, and $9,000 due to the Department of Veterans Affairs, none of which have ever been paid. Stenotype ceased operations in March 2016, shortly after a program review by the U.S. Department of Education.
This case was investigated by the U.S. Department of Education – Office of Inspector General and the U.S. Department of Veterans Affairs – Office of Inspector General. It was prosecuted by Assistant United States Laura Cofer Taylor.
Former North Carolina Board of Elections Election Official Sentenced to Prison for Aiding and Abetting Voting by an Alien in the 2016 General ElectionRead the Press Release
NEW BERN – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that DENSLO ALLEN PAIGE, age 66, of Wake County, North Carolina, was sentenced by United States District Court Judge Louise Wood Flanagan to two (2) months active time in the custody of the United States Bureau of Prisons, one (1) year supervised release, $250 fine, and a $25 special assessment. PAIGE’s sentencing follows her guilty plea to aiding and abetting voting by an alien.
According to court records, PAIGE, a paid volunteer and former election official with the North Carolina Board of Elections, advised Guadalupe Espinosa-Pena, a Mexican citizen, to register to vote and to vote in the 2016 General Elections.
PAIGE knew that Espinosa-Pena was not a United States citizen. Espinosa-Pena had been twice denied naturalization. However, PAIGE told Espinosa-Pena that “if he wanted his voice to be heard, he needed to vote.” PAIGE assisted Espinosa-Pena in completing his voter’s registration form.
The first question in Espinosa-Pena’s voter registration form was “Are you a citizen of the United States of America?” The form contained two boxes, one for “Yes” and one for “No.” The form further stated “IF YOU CHECKED ‘NO’ IN RESPONSE TO THIS QUESTION, DO NOT SUBMIT THIS FORM.”
According to statements made by PAIGE, she assisted Espinosa-Pena in the completion of the voter registration form and intentionally left the citizenship question unanswered. PAIGE said that she then submitted the form to a Board of Elections official for processing. At some later point, after the form had been submitted to the Board of Elections, some other person apparently checked the citizenship block “yes,” and Espinosa was allowed to register to vote.
Espinosa-Pena was assigned a polling station in Wake County, North Carolina. Espinosa-Pena voted in the 2016 General Election held in part for the purpose of electing a candidate for the office of President, Vice-President, and Member of the House of Representatives.
Mr. Higdon stated “The right to vote is a precious privilege available only to citizens of the United States. When a non-citizen votes in a federal election it serves to dilute and devalue the vote of American citizens and places the decision making authority of the American electorate in the hands of those who have no right to make those choices. This case is particularly disturbing as the defendant worked for the Board of Elections. My office will do its part to protect the rights of every American citizen to cast their vote freely and to have it counted fairly.”
The case was investigated by the Document and Benefit Fraud Task Force (DBFTF) in the Eastern District of North Carolina lead by Immigration and Customs Enforcement - Homeland Security Investigations, and assisted by Enforcement Removal Operations, and United States Citizenship and Immigration Services, among other agencies. The investigation as to voting fraud is ongoing.
Florida Businessman Sentenced to Prison for Fraud ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Florida man was sentenced today to five years in prison for conspiracy to commit wire fraud for orchestrating a scheme that caused over $1.7 million in losses to multiple victims.
According to court documents, Armando Almirall, 37, of Oviedo, was one of the managing principals of a company called Aura Exchange LLC (AURA). Almirall and his co-conspirators, through AURA, promised their clients that they could help obtain funding for a host of business purposes, such as real estate transactions and television projects. Instead, Almirall and his co-conspirators spent large portions of their clients’ funds on personal expenses, cash withdrawals and wire transfers without the clients’ knowledge or consent.
In order to induce the victims to provide AURA with money, Almirall and his co-conspirators made a host of fraudulent misrepresentations, including representing to clients that AURA had an established business portfolio when no such portfolio existed. AURA also guaranteed victims that they would receive their initial equity deposits back when, in fact, none of the victims ever received any of their original investment nor any additional funding from AURA. Almirall further claimed that AURA had offices in Zurich, London, and New York when no such offices existed. Almirall also provided clients with fraudulent bank documents showing that AURA could obtain millions (and in one instance, billions) in funds for their clients.
In addition to the prison sentence, Almirall was ordered to pay over $1.77 million in restitution to the victims of the fraud scheme.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Jamar K. Walker prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-392.
Felon in Possession of a Firearm Sentenced to Five Years in Prison under Project EJECTRead the Press Release
Jackson, Miss –Tommy Lee Hunter, Jr., 37, of Jackson, was sentenced today by U.S. District Judge Carlton W. Reeves to 60 months in federal prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst.
On April 4, 2018, officers with the Jackson Police Department were called to Prentiss Street after reports were received of a person shooting into an occupied vehicle. The reports came from an individual who was assisting someone move out of their home on Henry Street. The individual said that the defendant came outside on Henry Street and began an argument. During the argument, Hunter showed his firearm. The individual left in his vehicle, but Hunter began firing at him. The shots caused damage to the rear bumper of the vehicle as well as breaking the rear glass. Hunter was identified as the shooter and arrested. He had a prior felony conviction for Burglary of a Business and Second Degree Arson from Leflore County in 2005. Hunter was charged in a federal indictment on July 10, 2019 with being a felon in possession of a firearm. He pled guilty on September 5, 2018.
The case was investigated by the Federal Bureau of Investigation and the Jackson Police and with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Erin Chalk.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Felon Sentenced to Fourteen Years for Possession of FirearmsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Phay Lam Souphanthog, 39, of Irvington, Alabama, was sentenced this morning to 168 months imprisonment for his illegal possession of firearms. Souphanthog had been previously convicted of Manslaughter in 1999 in the Circuit Court of Mobile County, and he was arrested three times in possession of firearms from 2015 through 2017. Souphanthog was indicted on three counts of being a felon in possession of a firearm, and convicted in November of 2018 after a jury trial on two of those counts.
United States District Court Judge Kristi K. Dubose imposed the 168-month sentence, consisting of 84 months on each count, and ordered that the sentences run consecutively. The judge ordered that Souphanthog, who is illegally in the United States, be surrendered to a duly authorized immigration official at the conclusion of his imprisonment for deportation. If for some reason he is not deported, the judge ordered that he serve a three-year term of supervised release, which would include drug testing and treatment. No fine was imposed, but he was ordered to pay $200 in special mandatory assessments.
The case was investigated by the Mobile Police Department, the Mobile County Sheriff’s Office, the Prichard Police Department, the MCSENT Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.