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8 February 2019
Felon Pleads Guilty to Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that PHILLIP GUIDRY, age 49, of Loranger, Louisiana, yesterday pleaded guilty to being a felon in possession of a firearm before the Honorable Barry W. Ashe.
According to court documents, a March 2, 2018 search of GUIDRY’s home revealed that he possessed five (5) firearms, including shotguns and pistols. GUIDRY faces a maximum sentence of ten years in prison.
This case was brought as 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.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security, and the Louisiana State Police. The case is being prosecuted by Assistant United States Attorney David Howard Sinkman.
Felon Found Hiding in a Closet During Search Sentenced to Federal Prison for Possessing a FirearmRead the Press Release
A two-time felon who possessed multiple handguns and methamphetamine was sentenced today to ten years in federal prison.
Eric Allen Boyer, age 36, from Hiawatha, Iowa, received the prison term after an August 2, 2018 guilty plea to one count of being a felon in possession of a firearm.
In a plea agreement, Boyer admitted he was hiding in a bedroom closet in a house on Washington Avenue SE while the Cedar Rapids Police Department conducted a search there in April 2017. During the search of the bedroom where Boyer was found, officers seized a pistol, a stolen revolver, approximately 50 grams of methamphetamine, a digital scale, syringes, and drug packaging. Boyer had the firearms, at least in part, to protect the drugs from being stolen. Boyer had previously been convicted of arson in the second degree in 2015, and of possession with intent to deliver a controlled substance in 2010.
Boyer was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Boyer was sentenced to 120 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Boyer is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Cedar Rapids Police Department and the Federal Bureau of Investigation, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-00047-LRR.
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Federal Judge in Del Rio Sentences Three Men to Prison for Multi-Million Dollar Investment SchemeRead the Press Release
In Del Rio this week, a federal judge sentenced a Del Rio man and two other men to federal prison for conducting an advanced fee investment scheme through which they obtained in excess of $5 million from their victims, announced U.S. Attorney John F. Bash and F.B.I. Special Agent in Charge Christopher Combs, San Antonio.
On Wednesday, U.S. District Judge Alia Moses sentenced Kelly Ray Coronado, 51, of Del Rio, to 51 months in federal prison. Judge Moses also sentenced co-defendants James Edward Cox, 59 of Waxhaw, NC, and Gordon Richard Moskowitz, 55, of Sarasota, FL, to 78 months imprisonment and 46 months imprisonment, respectively.
In addition to the prison terms, Judge Moses ordered Cox and Coronado to forfeit to the government their respective residences which were used to conceal the illicit proceeds gained from their scheme and to pay, joint and severally, $4,249,478 in restitution to their victims. Judge Moses also ordered Moskowitz liable, along with Cox and Coronado, for $3.1 million of the total restitution in this case.
Cox and Coronado pleaded guilty to one count of conspiracy to commit wire fraud; Moskowitz, one count of conspiracy to commit money laundering. The defendants admitted that from January 2010 to January 2017, they implemented a high-yield investment scheme to obtain money from multiple victims under false pretenses, promises and representations. Furthermore, they preyed on vulnerable parties – most of whom operated international non-profits – by promising them large-scale financing in exchange for upfront payments. Using a tapestry of deceit involving fake business entities, websites, and aliases, the defendants collected upfront payments from their victims, then worked together to frustrate law enforcement detection and victim redress.
Federal Bureau of Investigation special agents in Del Rio, Tampa and Charlotte conducted this investigation. Assistant United States Attorney Paul T. Harle prosecuted this case on behalf of the Government.
Federal Inmate Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
Ocala, Florida – German De Jesus Ventura (40, Sumter County) has pleaded guilty to one count of assault with a dangerous weapon with intent to inflict bodily harm. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set. Ventura is currently serving a federal sentence for a sex trafficking conviction in the District of Maryland.
According to court documents, Ventura was an inmate at the Coleman Federal Correctional Complex in Florida, when in August 2017, he repeatedly struck another inmate in the back of the head with a homemade weapon consisting of a solid metal plate attached to a lanyard. The victim suffered a large head wound, two depressed skull fractures, and significant blood loss. A correctional officer who witnessed the assault quickly apprehended Ventura as he attempted to discard the weapon and run away from the incident scene.
This case was investigated by the FBI – Ocala Resident Agency and the Federal Bureau of Prisons. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
Federal Indictment Charges Sacramento Woman with Preparing False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — A six-count indictment returned by a federal grand jury was unsealed today, charging Leticia Tyshalle Reed, 42, of Sacramento, with making false claims to the Internal Revenue Service, U.S. Attorney McGregor W. Scott announced.
According to the indictment, Reed prepared and submitted federal income tax returns for tax years 2013 and 2014 for individuals that included false information and sought refunds that Reed knew the individuals were not entitled to receive.
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
If convicted, Reed faces a maximum statutory penalty of five years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Federal Grand Jury Criminal IndictmentsRead the Press Release
St. Louis, MO – United States Attorney Jeff Jensen announced today the results of this week’s Federal Grand Jury. An additional five sealed indictments were also returned.
The following individuals have been charged with violations of United States law in an indictment returned by the Grand Jury. The charges in an indictment are merely accusations, and the defendants are presumed innocent until and unless proven guilty.
Jennifer Cherry, 42, charged with Conspiracy to Defraud; Access Device Fraud; and Aggravated Identity Theft.
Brian Neal Collins, 42, charged with Knowingly and Intentionally Possess with intent to distribute controlled substances of 500 grams or more of mixture or substance containing a detectable amount of Methamphetamine.
Kevin Van Dyke, 38, charged with Access Device Fraud; Aggravated Identity Theft; Possession of five or more false Identification Documents and Authentication Features.
Lionerys Rodriguez, 33, charged with Access Device Fraud; Aggravated Identity Theft; Possession of five or more false Identification Documents and Authentication Features.
Cloyd Evans, 48, charged with Failure to Register as a Sex Offender.
Varnell E. Foote, 27, charged with Felon in Possession of a Firearm.
Luis Garcia-Castaneda, 30, charged with Conspiracy to Possess with intent to distribute in excess of five kilograms of Cocaine.
Laverne C. Henderson, 36, charged with Knowingly and Intentionally possess with intent to distribute Cocaine; Felon in Possession of a Firearm; and Knowingly possess one or more Firearms in furtherance of a drug trafficking crime.
Janae Hoekstra, 21, charged with Bank Fraud; Social Security Fraud; Access Device Fraud; and Aggravated Identity Theft.
Craig Manning, 30, charged with Felon in Possession of a Firearm; Carjacking; and Brandishing a Firearm in furtherance of a Crime of Violence.
Willie McCranie, 49, charged with Aggravated Identity Theft; Identity Theft; and Access Device Fraud.
Courtney McDonald, 33, charged with Knowingly and Intentionally Possess with Intent to Distribute Controlled Substances of 500 grams or more of mixture or substance containing a detectable amount of Methamphetamine.
David S. Parent, 45, charged with Felon in Possession of a Firearm.
Tamika Sandford, 33, charged with Harboring a Fugitive and Making a False Statement.
Fayetteville Sex Offender Sentenced to 10 Years in Federal Prison for Attempted Online Enticement of A MinorRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Timothy Reddin, age 68, of Fayetteville, Arkansas, was sentenced yesterday to 120 months in federal prison without the possibility of parole followed by twenty-five years of supervised release on one count of Attempted Online Enticement of a Minor. The Honorable Timothy L. Brooks, United States District Judge, presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in July of 2018, an agent with Homeland Security Investigations was conducting an undercover investigation into the online enticement of minors to engage in sexual activity in the Northwest, Arkansas area. During such operation, law enforcement, utilizing an online persona of a 14 year old male, logged into an undercover social media account. Shortly thereafter, an individual, later identified as Reddin, contacted the 14 year old persona. Reddin quickly began inquiring about the purported minor’s sexual experience. Reddin then expressed a willingness to engage in sexual activity with the minor. In early August, specific plans were made by Reddin and the purported minor to meet and engage in sexual activity. In response, law enforcement set up surveillance on the meet location. Reddin soon thereafter arrived at the predetermined location and was taken into custody.
A federal grand jury indicted Reddin in September of 2018, and he pleaded guilty in October of 2018. During sentencing, the Government presented the Court with evidence that Reddin was a previously convicted sex offender at the time of his arrest.
This case was investigated by Homeland Security Investigations and the Northwest Arkansas Internet Crimes Against Children Taskforce. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
Fairfield Man Sentenced to over 17 Years in Prison for Attempted Online Enticement of a MinorRead the Press Release
SACRAMENTO, Calif. — Donald Threatt, 68, of Fairfield, was sentenced Thursday to 17 years and eight months in prison for attempted online enticement of a minor, U.S. Attorney McGregor W. Scott announced.
According to court documents, in April 2017, Threatt began conversing through the Kik Messenger mobile app with an individual who identified herself as “Sarah,” a 15-year-old girl who was interested in online games, soccer, and track. Off and on over the course of many days, Threatt used Kik to tell “Sarah” the various sexual things he wanted to do to her. He discussed and agreed with the purported minor that he would visit her residence on Beale Air Force Base while her mother was away. According to the Kik chat, Threatt suggested blindfolding her and tying her up with rope. He stated that he would engage in various sexual acts with her and proposed that they take photos and a video of their sexual activity. Threatt arranged to meet her at her residence on May 12, 2017, after her mother had left for the weekend.
Unbeknownst to Threatt, the minor was actually an undercover law enforcement agent. On the day of the planned meeting, law enforcement personnel surveilled Threatt as he left his home in Fairfield, purchased rope from a home improvement store, and drove to the house where the meeting with the minor was to occur. Threatt was arrested after he pulled into the garage of the house. In his car, agents found cameras, a tripod, rope, and condoms.
According to court documents, this was not the first time Threatt attempted to prey on a child. Agents searched Threatt’s residence and seized a computer hard drive containing approximately 800 internet chats from 2008. Together, those communications showed he had been communicating with several girls under the age of 18. In those communications, Threatt discussed how he wanted to have sexual relations with the underage girls and repeatedly solicited and received nude photographs from at least one minor. In addition, in 2013, Threatt was arrested after he used email to attempt to persuade an undercover law enforcement officer that he believed to be a 15-year-old girl to meet with him to have sex. Threatt was prosecuted in state court for that offense.
This case was the product of an investigation by the Air Force Office of Special Investigations and the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew D. Segal, Jeremy J. Kelley, and Katherine T. Lydon prosecuted 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 the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Executives Convicted of Selling Falsely Labeled Body Armor to U.S. GovernmentRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted two Florida men yesterday on charges of conspiracy, making false claims on the United States government, and wire fraud.
According to court records and evidence presented at trial, Dan Thomas Lounsbury, Jr., 50, of South Palm Beach, and Andres Lopez-Munoz, 35, are both executives of Tactical Products Group, LLC (TPG), a Florida-based manufacturer and re-seller of various products to military, law enforcement, and private security clients. Lounsbury, Jr., is the founder, owner, and CEO of TPG, while Lopez-Munoz is TPG’s Vice President for Sales and Federal Contracting. In 2012, TPG was selected as a sub-contractor on a contract to provide certain goods, including 10 sets of hard body armor plates, to the United States government.
The Government had requested a specific type of plate, and Lounsbury and Lopez-Munoz both knew that no substitutions were allowed. Furthermore, Lounsbury and Lopez-Munoz both knew that these plates were intended to protect government personnel in the field. Nevertheless, Lounsbury and Lopez-Munoz worked together to procure cheaper substitute plates, none of which were military-tested, and some of which were far outside of their warranty period. To get the United States government to accept and pay for these plates, Lounsbury and Lopez-Munoz had fake labels created and placed on the armor, falsely representing the plates to be the specific type that the government had ordered.
Lounsbury and Lopez-Munoz face a maximum penalty of 20 years in prison when sentenced on May 10. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict. Assistant U.S. Attorneys Grace L. Hill and Raj Parekh are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-301.
El Paso County Woman Sentenced to Federal Prison for Theft of Firearms from Licensed DealerRead the Press Release
DENVER – Jennifer Scoggin, age 35, of El Paso County, Colorado, was sentenced yesterday by U.S. District Court Judge William J. Martinez to serve 26 months in federal prison, followed by 3 years on supervised release for her involvement in the theft of firearms stolen from a federally licensed firearms dealer, announced U.S. Attorney Jason Dunn and ATF Denver Special Agent in Charge Debbie Livingston. The defendant appeared at the sentencing hearing in custody, and was remanded at its conclusion. Scoggin along with three codefendants and an unindicted juvenile stole close to 60 firearms from the Dragon Arms, a business in El Paso County.
Scoggin was indicted, along with her codefendants on September 14, 2017. She pled guilty before Judge Martinez on October 1, 2018. Scoggin was sentenced yesterday, February 6, 2019. Codefendants Camron Specht (her 18-year-old son), and her son’s friends Ryan Sharpe and Gian Carlos Vance were all sentenced to time served followed by 3 years on supervised release.
According to the stipulated facts contained in Scoggin’s plea agreement, on August 27, 2017, Scoggin along with codefendants and an unindicted juvenile, carried out a burglary of the Dragon Arms gun store, a federally licensed firearms dealer located at 1200 Dragonman Drive in El Paso County, Colorado. The Dragon Arms gun store was just down the road from Scoggin’s house.
The defendant came up with the plan to burglarize the gun store. She agreed to drive her son and his friends to the store to carry out the burglary, and demanded that they take some guns for her as well. The four young men got into the defendant’s car, and she covered them up with blankets and clothes to hide them from view. She then drove to the gun store with the codefendants hidden inside of her car. She parked the car in front of the gun store, and got out, leaving the men hidden in the car. The defendant, who has a personal relationship with the owner of the gun store, lured him away from the store. After the defendant and the gun store owner left, the codefendants and the juvenile made entry into the building by driving a vehicle through a garage door, entering the business and then leaving with at least 57 handguns, shotguns and rifles. While her son and his friends were carrying out the burglary, the defendant repeatedly texted her son to let him know how much time he had remaining until she returned with the owner. Later that night ATF agents located the defendant at her home, locating several of the stolen firearms in her house. All stolen firearms were ultimately located and seized.
“Removing stolen firearms from our streets helps reduce violent crime,” said U.S. Attorney Jason Dunn. “Targeting those who steal the firearms from stores which are then given to other criminals is even more important. Congratulations to the entire team that investigated and prosecuted this case.”
“This case highlights the incredible work by our ATF Special Agents, the El Paso County Sheriff’s Office and the Colorado Springs Police Department,” said ATF Denver Special Agent in Charge Debbie Livingston. “Scoggin’s criminal actions posed a threat to our society. I am very proud of the team that not only put her behind bars but also recovered 57 stolen firearms.”
This case was investigated by the ATF with assistance from the El Paso County Sheriff’s Office and the Colorado Springs Police Department. The defendant was prosecuted by Assistant U.S. Attorney Emily Treaster.
This case is part of Project Safe Neighborhoods (PSN). 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.
Dunedin Psychologist Pleads Guilty to Obstruction of A Medicare AuditRead the Press Release
Tampa, Florida – Dr. Charles Gerardi (76, Dunedin) has pleaded guilty to obstructing a Medicare audit. He faces a maximum penalty of 5 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in 2012, a federal Medicare auditor performed an audit of Gerardi’s employer related to 350 claims, and more than 2,300 individual services that Gerardi had purportedly performed. In response to the audit request, Gerardi provided the auditor with a series of fabricated records, which were designed to fraudulently support the medical necessity of the claims. Gerardi knew that the claims under review were not otherwise supportable, and fabricated the records for the purpose of impeding the auditor's performance of the audit.
This case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Rachel Jones.
District Man Sentenced to Six Years in Prison for Traffic Fatality in Northeast WashingtonRead the Press Release
WASHINGTON - Daryl G. Alexander, 47, of Washington, D.C., was sentenced today to six years in prison on a charge of voluntary manslaughter in a crash that killed Oren Dorell, a reporter for USA Today, in Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD). Prior to the crash, according to the evidence, Alexander had smoked a cigarette dipped in PCP.
Alexander pled guilty on Sept. 14, 2018, in the Superior Court of the District of Columbia. He pled guilty under what is known as the Alford doctrine. Under an Alford plea, the defendant does not admit the allegations but agrees that the government has enough evidence to secure a conviction. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 60 to 72 months in prison. The Honorable Craig Iscoe accepted the plea and sentenced the defendant accordingly. Following his prison term, Alexander will be placed on five years of supervised release. He also faces revocation of his probation for an earlier offense.
According to the government’s evidence, on Friday June 8, 2018, at approximately 8:25 p.m., Alexander was driving his Toyota Camry eastbound on H Street NE, at a high rate of speed, when he struck a motorcycle operated by Mr. Dorell. A witness reported seeing the vehicle strike and run over Mr. Dorell, and then continue east before stopping at 13th and H Streets NE. When the Metropolitan Police Department arrived on the scene, Alexander was still in the car, and several citizens were banging on the window to get his attention. About 20 people, including citizens and offices, joined together to lift the car, and Mr. Dorell was underneath it. Mr. Dorell was transported to the hospital but died early June 9, 2018, a few hours later.
Alexander was removed from the vehicle at the scene and placed in handcuffs. Officers attempted to conduct an initial interview, but Alexander was not coherent or responsive to any verbal directions. Officers noticed a strong chemical odor consistent with PCP emanating from the defendant as well as his vehicle. He was taken to a hospital for evaluation and treatment.
After he was released from the hospital, Alexander told police that on the evening of June 8, 2018, he drove to a Chinese restaurant in Southeast Washington, placed an order for food, and then consumed alcohol and smoked a cigarette dipped in PCP in his car. According to his interview with police, the next thing he remembered was being handcuffed by police at the crime scene. He denied any recollection of driving to H Street or striking a motorcycle.
Alexander was convicted in the Superior Court of the District of Columbia in 2016 for driving under the influence of alcohol. He now faces revocation of his probation for that offense.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham praised those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Investigations Unit and the First District. They also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Stephanie Siegerist, former Victim/Witness Advocate Diana Lim, and Victim/Witness Advocate Yvonne Bryant. Finally, they commended the work of Assistant U.S. Attorney Edward A. O’Connell, who prosecuted the matter.
Department of Justice Positions Prevail in Two Federal Religious Liberty LawsuitsRead the Press Release
Two federal courts handed down decisions this week protecting religious liberty and agreeing with the positions of the Department of Justice in those cases. In the first case, the United States Court of Appeals for the Fourth Circuit ruled that a federal trial court had improperly dismissed a suit by a small African Christian congregation under the Religious Land Use and Institutionalized Persons Act (RLUIPA). The congregation alleges that Baltimore County, Maryland, improperly denied the congregation zoning approval for a new church. In the second case, the United States District Court for the District of Iowa ruled that the University of Iowa violated the First Amendment rights of a student group when the University de-registered the group for requiring its student leaders to adhere to the group’s religious beliefs, while not applying that same requirement to other student groups.
“The Department of Justice is committed to protecting the religious, associational, and expressive freedoms enshrined in federal law,” said Principal Deputy Associate Attorney General Jesse Panuccio. “We are pleased the courts agreed with the Department in these two cases, and we will continue to work to protect the rights of people of all faiths.”
In Jesus Christ is the Answer Ministries v. Baltimore County, Maryland, the appeals court ruled that a small congregation, many of whose members are African immigrants, could proceed with its claim that the county improperly denied approval to build a small church on a 1.2-acre lot. The congregation sued under RLUIPA, which protects places of worship from discriminatory or unjustifiably burdensome application of zoning regulations. The suit alleged that neighbors opposing the plan had made racially and ethnically charged statements about the worship style of the congregation including references to “dancing and hollering” as if they were “home back in Africa.” The suit also alleged that the church had made reasonable proposals and modifications to its plan and that their religious exercise was “substantially burdened” in violation of RLUIPA by the denial. The court of appeals agreed with the brief of the United States that both of these claims should be permitted to proceed.
In Business Leaders in Christ (BLinC) v. University of Iowa, the court agreed with the Statement of Interest filed by the United States, and ruled that the University of Iowa violated students’ rights of expressive association and free exercise of religion by de-registering a Christian student group. The university had de-registered the group because BLinC limits its leadership to persons who agree with its religious beliefs. The court found that the University applied the de-registration policy in a discriminatory manner by allowing other student groups to similarly limit their membership or leadership if the University felt the groups supported the University’s “education or social purposes.”
The Department of Justice announced the Religious Liberty Task Force in July, 2018. The Task Force helps the Department fully implement the religious liberty guidance by ensuring that all Justice Department components are upholding that guidance in the cases they bring and defend, the arguments they make in court, the policies and regulations they adopt, and how we conduct our operations.
More information about RLUIPA is available on the Place to Worship Initiative homepage, www.justice.gov/crt/placetoworship.
Del Rio Man Sentenced to Ten Years in Federal Prison for Possession of Child PornographyRead the Press Release
In Del Rio, a federal judge sentenced 51-year-old Timothy Robert Beasley to ten years in federal prison for possession of child pornography, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio.
Yesterday afternoon, U.S. District Judge Alia Moses sentenced Beasley to the prison term followed by ten years of supervised release and ordered that he pay $20,000 restitution to his victims.
On December 15, 2015, HSI agents executed a search warrant at Beasley’s residence and seized several home computers, related media and cell phones. A subsequent forensics examination of the seized materials revealed the presence of more than 120 videos depicting minors engaged in sexually explicit activity. On November 30, 2016, Beasley pleaded guilty to the child pornography possession charge.
“Protecting children from predators who seek to exploit them is always a priority for Homeland Security Investigations and our law enforcement partners,” said Special Agent in Charge, Shane Folden, HSI San Antonio. “Child exploitation is a global issue that takes many forms and directly impacts the United States and our communities.”
HSI agents in Del Rio conducted this investigation. Assistant United States Attorney Matthew Watters prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.projectsafechildhood.gov.
Colombian National Sentenced to Federal Prison for East Texas Drug TraffickingRead the Press Release
BEAUMONT, Texas – A 35-year-old Colombian national has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Esmir Colorado-Cuero pleaded guilty on Oct. 22, 2018, to conspiracy to distribute heroin, conspiracy to money launder, and illegal reentry by a previously removed alien. Colorado-Cuero was sentenced to 121 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, in January 2016, law enforcement officers seized a kilogram of heroin moving through Beaumont, Texas for delivery in Louisiana. Around the same time, two bulk cash seizures of over $100,000 each, were made in the Houston area. An investigation by law enforcement agents into these events identified Colorado-Cuero’s connection to a large scale heroin trafficking and money laundering conspiracy moving drugs and cash from Houston through the Eastern District of Texas. Further investigation revealed Colorado-Cuero was a Colombian national and had been apprehended and deported from the United States on at least two prior occasions.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Six other defendants have been convicted and sentenced for their roles in the conspiracies.
This case was investigated by the DEA Houston Field Division; DEA Miami Field Division; Houston Police Department; Beaumont Police Department; Department of Homeland Security-Enforcement Removal Operations-Beaumont; Homeland Security Investigations-Houston; and Texas Department of Public Safety Crime Lab Tyler and Austin. This case was prosecuted by Assistant U.S. Attorneys Randall L. Fluke and John Craft and Special Assistant U.S. Attorney Tommy Coleman.
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Citizen of Mexico and Leader of Georgia-Based Drug Trafficking Organization Pleads Guilty to Conspiring to Distribute Large Amounts of Methamphetamine in Central FloridaRead the Press Release
Orlando, Florida– Juan Alberto Flores-Jimenez (34, Tamaulipas, Mexico), a/k/a Juan Cantu, a/k/a Stoner, today pleaded guilty to conspiring to possess with the intent to distribute 50 grams or more of methamphetamine. He faces a maximum penalty of life in federal prison. Flores-Jimenez is the eighteenth person to plead guilty as a result of a joint FBI and DEA investigation into drug trafficking organizations that supplied motorcycle clubs, including the Pagans Motorcycle Club, with distribution amounts of methamphetamine.
According to the plea agreement, Flores-Jimenez, an alien residing illegally within the United States, was the leader of a drug-trafficking-organization (DTO) distributing kilogram amounts of methamphetamine from Georgia to other DTOs located in central Florida. Flores-Jimenez obtained large amounts of methamphetamine from a DTO operating in Georgia. In some instances, members of different Florida-based DTOs traveled to Georgia to pick up large amounts of methamphetamine from the Flores-Jimenez DTO for further distribution in Florida. In other instances, runners associated with the Flores-Jimenez DTO transported large amounts of methamphetamine from Georgia to locations in Jacksonville and Daytona Beach. Members of the Flores-Jimenez DTO delivered the methamphetamine to individuals, who then further distributed the drugs to different groups and individuals in central Florida. Between April 2017 and September 13, 2018, Flores-Jimenez was responsible for distributing at least 4.5 kilograms of methamphetamine in the Middle District of Florida.
Flores-Jimenez, a native and citizen of Mexico, was ordered removed/deported from the United States in 2014 and 2015. On September 13, 2018, law enforcement arrested Flores-Jimenez and charged him will illegal reentry into the United States, after being previously removed. On January 2, 2019, in a separate case, he pleaded guilty to that charge.
This case was investigated by the FBI, the DEA, the Volusia Bureau of Investigation, the Volusia County Sheriff’s Office, and the Daytona Beach Police Department. It is being prosecuted by Assistant United States Attorney Sean P. Shecter.
Chesapeake Sheriff’s Deputy Arrested for Smuggling Heroin into JailRead the Press Release
NORFOLK, Va. – A Chesapeake Sheriff’s Deputy was arrested this morning on charges related to his role in smuggling heroin into the Chesapeake City Jail.
According to allegations in the indictment, from July 2017 through January 2019, Jenis Leroy Plummer, Jr., 35, as a Chesapeake Sheriff’s Deputy at the Chesapeake City Jail, conspired with conspirators to smuggle heroin and other contraband into the Chesapeake City Jail. The indictment alleges that on Oct. 19, 2018, Plummer drove to a cul-de-sac on Horse Run Drive in Chesapeake and picked up a package containing contraband that a conspirator had left for him to retrieve. On that same day, Plummer used his position as a Chesapeake Sheriff’s Deputy to smuggle the contraband to an inmate in the jail. Plummer used his position as a Chesapeake Sheriff’s Deputy to obtain funds that he was not entitled to receive.
The Chesapeake Sheriff’s Office has provided significant assistance and full cooperation during the investigation.
Mr. Plummer is charged with conspiracy to distribute and possession with intent to distribute heroin, conspiracy to obtain property under color of official right, and a separate count of obtaining property under color of official right. If convicted of all counts in the indictment, he faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement. Assistant U.S. Attorneys Joseph DePadilla and Melissa E. O’Boyle are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-25.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Charlestown Man Pleads Guilty to Bank RobberyRead the Press Release
BOSTON - A Charlestown man pleaded guilty yesterday in federal court in Boston to bank robbery.
Robert H. Brady, 41, pleaded guilty to one count of bank robbery. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for May 7, 2019. Brady is currently in federal custody.
On June 28, 2018, an individual, later identified as Brady, entered a branch of the Cambridge Savings Bank in Charlestown, approached a teller, and demanded the bank’s money - stating words to the effect of: “Give me everything or I will come back and blow this place up.” The teller gave Brady money from her cash drawer, which included a GPS tracking device. Brady then fled the scene.
Law enforcement activated the GPS tracking device, and a short time later, located and arrested Brady. At the time of his arrest, Brady was in possession of the bank’s money and the GPS tracking device.
The charge provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Boston Police Commissioner William Gross made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
California Man Sentenced to over a Decade in Federal Prison for His Role in Meth Distribution Around DubuqueRead the Press Release
A man who admitted to being a money collector for a large‑scale ice methamphetamine distribution operation was sentenced February 7, 2019, to thirteen years in federal prison.
Jose Juan Ceja, age 25, from Bell Gardens, California, received the prison term after a June 28, 2018 guilty plea to one count of conspiring to distribute methamphetamine.
Evidence at the sentencing hearing showed that Ceja worked primarily as a money collector for a Mexican drug cartel that was responsible for distributing over three kilograms of ice methamphetamine in the Dubuque, Iowa, area in 2017. In October 2017, Ceja appeared at one of his customers’ homes looking to retrieve something from a prior shipment of methamphetamine. When the customer did not tell him the location of the methamphetamine, Ceja showed the customer videos of cartel members cutting off peoples’ hands and heads, and made threats against another member of the conspiracy.
Ceja was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Ceja was sentenced to 156 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Ceja is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Federal Bureau of Investigation and Dubuque Drug Task Force, and prosecuted by Assistant United States Attorney Dan Chatham and Special Assistant United States Attorney Drew Inman.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1002-4-LTS-MAR.
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CVS Employee Accused of Stealing Hundreds of Thousands of Dollars Worth of Diabetic Test StripsRead 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 Antonio Rivera, 35, of Williamsville, NY, was arrested and charged by complaint with theft of pre-retail medical products; trafficking in stolen pre-retail medical products; conspiracy to sell and distribute stolen pre-retail medical products; and wire fraud. The charges carry a maximum sentence of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that according to the complaint, since February 2007, the defendant was employed as a Senior Assistant Purchasing Associate for CVS Pharmacy. This position required Rivera to order a variety of retail products sold by CVS, including diabetic test strips.
In July, 2018, CVS's internal systems red flagged the purchasing of diabetic test strips at the Humboldt CVS location in Rochester, NY. A package located in the store’s shipping area did not have a CVS label, included Rivera’s return address, and came from a company with which CVS does not do business. A subsequent internal investigation by CVS determined that Rivera routinely purchased diabetic test strips in excessive amounts, well over the need for the Humboldt location. The audit could not account for 20,203 boxes purchased by Rivera, for a total financial loss of approximately $2,535,307.62.
The complaint states that the defendant ordered the excessive amounts of diabetic test strips and then intercepted the shipments once they arrived. He then sold the stolen product to third party purchasers identified as National Medical Management and HMF Distributing Inc. A forensic accounting of Rivera’s bank accounts identified payments for the fraudulently obtained diabetic test strips were deposited into the defendant’s bank accounts.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Marian W. Payson and was released.
The complaint is the result of an investigation by the Rochester Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the New York State Department of Financial Services, under the direction of Superintendent Maria T. Vullo.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Biotech Company Employee Pleads Guilty to Securities Fraud ChargesRead the Press Release
BOSTON – An employee of PixarBio Corp., a Boston-based biotech company, pleaded guilty yesterday to securities fraud charges in connection with a scheme to defraud investors and manipulate the company’s shares.
M. Jay Herod, 52, of Cambridge, pleaded guilty to one count of securities fraud and one count of obstruction of an agency proceeding. In April 2018, Herod was initially charged by criminal complaint and arrested with co-defendant Frank Reynolds, the former chief executive officer of PixarBio. Reynolds has pleaded not guilty.
Herod admitted that, beginning in or about December 2016, he engaged in manipulative trades in PixarBio stock that were intended to simulate market demand for the stock and thereby artificially inflate its price and trading volume. The trades included overlapping orders to buy and sell PixarBio shares at the same price per share (a manipulative technique known as “matched trading”), as well as small purchases submitted shortly before the market closed that were intended to boost the closing price (a technique known as “marking the close”). Herod admitted to sharing the proceeds of his trading with Reynolds and PixarBio itself.
Herod also admitted that, between January 2017 and September 2017, he made materially false statements to the Securities and Exchange Commission (SEC) and provided a back-dated document to the SEC, with the intent to obstruct the SEC’s investigation of trading in PixarBio shares.
The charges of securities fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $5 million or twice the gross gain/loss, whichever is greater. The charge of obstruction of an agency proceeding provides for a sentence of no greater than five years in prison, one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Carl W. Hoecker, Inspector General of the U.S. Securities and Exchange Commission Office of Inspector General, made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
The details contained in the court documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Biodiesel Fuel Company Sentenced for Releasing over 45,000 Gallons of Wastewater into the "Arthur Kill" WaterwayRead the Press Release
Yesterday, an Elizabeth, New Jersey, biodiesel fuel company was sentenced for discharging more than 45,000 gallons of wastewater from its commercial biodiesel fuel production facility into the Arthur Kill, a waterway separating New Jersey from Staten Island, New York, announced the Department of Justice and the U.S. Environmental Protection Agency (EPA). The company had pleaded guilty in June 2018 to one count of violating the Clean Water Act.
Fuel Bio One LLC was sentenced by U.S. District Judge William J. Martini to pay a criminal fine of $100,000. The company was also sentenced to probation for a period of five years, during which the company must (1) provide biannual reports to the court and the government documenting its waste generation, handling, and disposal practices; (2) develop, implement, and fund an employee training program to ensure that all employees are aware of proper waste handling and disposal practices and to ensure that all storage, treatment, and disposal of wastewater complies with the Clean Water Act; and (3) allow the EPA full access to all offices, warehouses, and facilities owned or operated by the company.
“Staten Island Sound (also known as the Arthur Kill) is a vital waterway running between New Jersey and Staten Island. Once heavily polluted and nearly devoid of marine life, this waterbody is making a comeback and again provides habitat to many species of fish and wildlife,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “Illegal dumping of pollution into the Sound not only violates federal law, but also threatens the environmental recovery of this historic marine channel, which is important to New Yorkers and New Jerseyans alike. The Justice Department will continue to work closely with EPA Criminal Investigation Division to prosecute illegal actions like those in this case.”
“Protecting the environment and our natural resources is one of the many ways this office works to keep New Jersey safe for everyone,” said U.S. Attorney Carpenito for the District of New Jersey. “The sentence imposed yesterday as a result of Fuel Bio One’s previous guilty plea ensures that the company will be punished for its past crimes, and the plea agreement puts in place a plan to ensure they don’t pollute our waterways in the future.”
“Fuel Bio One undercut a level playing field when they illegally discharged polluted wastewater into the Arthur Kill,” Special Agent in Charge Tyler Amon of EPA’s Criminal Investigation Division in New Jersey said. “This judicial action demonstrates EPA’s commitment to protecting New Jersey’s environment and ensuring that all companies play by the rules to keep pollutants out of the state’s natural resources.”
According to court documents filed in this case and statements made in court, Fuel Bio One generated wastewater that included methanol, biodiesel, and other contaminants as a byproduct of biodiesel fuel production at its Elizabeth, New Jersey, plant. On Sept. 6, 2013, and Nov. 9, 2013, employees of Fuel Bio One released approximately 45,000 gallons of wastewater into a storm water pit at the Elizabeth plant, causing the pump to operate and, as a result, wastewater to be discharged into the Arthur Kill. A representative of Fuel Bio One admitted to this conduct in court yesterday.
Assistant Attorney General Clark and U.S. Attorney Carpenito credited special agents of the EPA, under the direction of Special Agent in Charge Amon, with the investigation leading to yesterday’s sentence.
The Government is represented by Trial Attorney Adam Cullman of the Environmental Crimes Section and Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
Armed Career Criminal Sentenced to 15 Years in Prison Under Project EJECTRead the Press Release
Jackson, Miss. - Julian Miller, 52, of Jackson, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to 15 years in prison, followed by five years of supervised release, for being an Armed Career Criminal in illegal possession of a firearm, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge of the Bureau of Alcohol, Tobacco Firearms and Explosives.
On November 22, 2017, Jackson police officers executed a search warrant at a residence in Jackson. During the search of the home, Julian Miller was found in possession of a firearm. Because Miller has multiple felony convictions, including armed robbery and two separate convictions for sale of crack cocaine with 1,500 feet of a school, he was classified as an Armed Career Criminal under the Federal Sentencing Guidelines. On April 4, 2018, he was charged in a federal indictment with being a convicted felon in possession of a firearm. He pled guilty on November 2, 2018.
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.
U.S. Attorney Hurst commended the work of the Jackson Police Department and their cooperation with agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, as well as Project EJECT task force members. Assistant U.S. Attorney Kristi H. Johnson prosecuted the case.
Appleton Sex Offender Indicted on Child Pornography 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 returned an indictment against Brandon T. Daul (age: 36) of Appleton, Wisconsin.
According to the indictment, in October of 2015, Daul distributed images of child pornography including images of children approximately seven years of age and younger. He is also alleged to have possessed images of child pornography two years later in October of 2017. The indictment further reflects that Daul was convicted on October 5, 2011, in Outagamie County Circuit Court, for the crime of possession of child pornography and is a lifetime sex offender registrant in the State of Wisconsin.
Daul faces one charge of distribution of child pornography, contrary to Title 18, United States Code, Section 2252A(a)(2)(A), and possession of child pornography, contrary to Title 18, United States Code, Section 2252A(5)(b). He faces a mandatory minimum sentence of 15 years and up to 40 years of incarceration in federal prison.
He is scheduled for arraignment in Green Bay federal court on February 20, 2019.
This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations, with the assistance of the Saskatchewan Integrated Internet Child Exploitation Unit, 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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Anderson Man Sentenced to over 30 Years in Federal Prison for Using Weapons of Mass DestructionRead the Press Release
Greenville, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Wesley Dallas Ayers, 27, of Anderson, South Carolina, was sentenced in federal court for using, attempting to use, and threatening to use weapons of mass destruction; possession and discharge of a firearm in furtherance of a violent crime; and use of an explosive device during the commission of a felony. United States District Judge Henry M. Herlong, Jr., of Greenville sentenced Ayers to 361 months in federal prison and five years of supervised release. There is no parole in the federal system.
Ayers had previously admitted that he constructed, and then placed, three explosive devices in various parts of Anderson County between January 24, 2018, and February 24, 2018. A device placed by Ayers on January 30, 2018, at the intersection of Travis and Martin Roads in Anderson County, detonated and injured one individual. The other two devices, which Ayers also placed in or near area roadways, were intercepted and rendered safe by federal, state, and local law enforcement agencies.
In that same timeframe, Ayers placed three hoax devices, which resembled explosives but did not contain any blasting agent. With some of those devices, the defendant left threatening messages that more, and more powerful, devices were to come.
Ayers was arrested after an exhaustive month-long investigation, with the combined efforts of the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco Firearms and Explosives; Anderson County Sheriff’s Office, and numerous law enforcement agencies from around the State of South Carolina. DNA and other forensic evidence associated Ayers with the various devices. Additionally, a search of his property produced numerous items consistent with the manufacture of the same.
Judge Herlong found that the dangerous and lethal nature of the devices, weaponized with shrapnel, concealed in household items, and publicly placed in or near roadways justified the substantial sentence. He emphasized the length of Ayers’ campaign against the citizens of Anderson County for more than a month’s time and that only by the efforts of law enforcement and sheer good fortune were more individuals not seriously harmed or killed.
The case was investigated by the Federal Bureau of Investigation in conjunction with numerous other federal, state, and local law enforcement agencies. Assistant United States Attorney D. Josev Brewer of the Greenville office prosecuted the case.
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7 February 2019
“Monkey Island” Pipe Bomb Defendant SentencedRead the Press Release
A 36-year-old resident of Grove was sentenced today in U.S. District Court for possessing an unregistered “pipe bomb” discovered at his former Afton residence last August, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Richard Cole to 30 months of probation for possession of an unregistered destructive device. Cole pleaded guilty in November.
“Today was a day of accountability and consequences for Richard Cole. He is now a federally convicted and sentenced felon because of an illegal homemade bomb,” said U.S. Attorney Trent Shores. “I want to again commend the Oklahoma Highway Patrol Bomb Squad and the Delaware County Sheriff’s Office for their professionalism and timely response. Their swift action protected the residents living at ‘Monkey Island.’”
At his plea hearing, Richard C. Cole admitted to possessing a pipe bomb which was capable of exploding and for not taking the required steps to apply for and register the destructive device with the National Firearms Registration and Transfer Record according to federal laws. The bomb was located at his former rental apartment in Afton.
On Aug. 25, 2018, Delaware County Sheriff’s deputies were called to Cole’s apartment unit after the landlord discovered a suspected improvised explosive device (IED). The landlord made the discovery as he was inspecting the apartment following Cole’s eviction. Authorities then contacted the Oklahoma Highway Patrol Bomb Squad who, upon arrival, observed two, one-pound canisters containing “mixed Tannerite” which is a binary explosive. They also found two boxes of ammunition along with an IED, commonly referred to as a “pipe bomb,” in an ammunition container. The explosive experts then rendered the device safe at that time.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Oklahoma Highway Patrol Bomb Squad and Delaware County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Robert T. Raley prosecuted the case. Raley is the National Security Anti-Terrorism prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
Youngstown, Ohio Man Sentenced for Interfering with Flight AttendantRead the Press Release
COVINGTON, Ky. - A Youngstown, Ohio, man who previously admitted to striking a flight attendant while in flight on an aircraft was sentenced today to 31 days in custody, followed by seven months of home detention. U.S. District Court Judge David Bunning sentenced 24-year-old Donald Zuppo, Jr., for interference with a flight attendant.
According to Zuppo’s plea agreement, he was on a flight, from Phoenix to Cleveland on March 20, 2018, when he became agitated and struck a flight attendant with his fist. Zuppo’s actions caused the flight crew to divert the aircraft for a landing at the Cincinnati/Northern Kentucky International Airport.
In addition to the terms of imprisonment and home detention, Zuppo was ordered to pay restitution to the flight attendant and will be under the supervision of the U.S. Probation Office for two years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation, jointly announced the sentence. The investigation preceding the indictment was conducted by the FBI. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Andrew T. Boone.
Upper West Side Heroin Dealer Arrested for Causing Overdose DeathRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced that JOSE LOPEZ, a/k/a “Joey,” was arrested yesterday for selling heroin that caused the death of Luxi Gong in October 2018. LOPEZ was presented yesterday in Manhattan federal court before U.S. Magistrate Judge Henry B. Pitman.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, with little regard for human life, Jose Lopez lined his pockets by allegedly advertising and selling a highly potent form of heroin. In fact, as alleged, even after he learned that the drugs he sold killed a 25-year-old woman, he continued to sell his poison. Now, Lopez faces life in prison for his alleged crimes.”
According to the allegations in the Complaint unsealed yesterday in Manhattan federal court:[1]
LOPEZ used online bulletin boards and social media to advertise and sell a particularly potent form of heroin. On October 27, 2018, one of LOPEZ’s customers, a 25-year-old Manhattan woman named Luxi Gong, was found dead in her apartment. Following an investigation by the NYPD, LOPEZ was identified as the person who had distributed heroin to Gong, resulting in her death. LOPEZ continued to sell heroin even after he was informed that Gong had overdosed from the drugs he sold.
* * *
LOPEZ, 26, of Manhattan, New York, was charged with distribution and possession with intent to distribute heroin, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 20 years in prison. The maximum and minimum sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Berman praised the outstanding work of the NYPD.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Adam S. Hobson is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
United States and International Law Enforcement Dismantle Online Organized Crime Ring Operating out of Romania that Victimized Thousands of U.S. ResidentsRead the Press Release
According to court documents unsealed today, 20 people, including 16 foreign nationals, have been charged for their roles in an international organized crime group that defrauded American victims through online auction fraud causing millions of dollars in losses.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan, Jr. of the Eastern District of Kentucky, Director Randolph D. Alles of the U.S. Secret Service (USSS), Commissioner Richard W. Sanders of the Kentucky State Police, Chief of Police Lawrence Weathers of the Lexington Police Department, Chief Don Fort of IRS Criminal Investigation and Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service Pittsburgh Division made the announcement.
“The defendants allegedly orchestrated a highly organized and sophisticated scheme to steal money from unsuspecting victims in America and then launder their funds using cryptocurrency,” said Assistant Attorney General Benczkowski. “As the charges and arrests announced today demonstrate, the Criminal Division and our law enforcement partners will vigorously pursue cybercriminals who defraud the American public, regardless of where those criminals may reside.”
“This prosecution stems from a multi-year investigation initiated in Kentucky led by the U.S. Secret Service, in cooperation with several local, state, federal, and international law enforcement partners,” said U.S. Attorney Duncan. “Cooperation of this kind is essential, if we are to be effective in disrupting organized cybercrime, which costs victims from across the United States millions of dollars and has become an increasingly prevalent means for criminals to prey on the public. I commend the exceptional work done by our law enforcement partners, and we are proud to join this cooperative effort to combat cyber fraud schemes.”
“Today’s announcement demonstrates the success of the collaborative efforts of our worldwide network of law enforcement partners. It sends a powerful message and demonstrates the transnational investigative capabilities of the Secret Service,” said Secret Service Director Randolph “Tex” Alles. “This is a shared win for law enforcement across the globe. I would like to thank the more than a dozen law enforcement agencies worldwide who helped us investigate this case, each played a vital role in its success.”
On July 5, 2018, a federal grand jury in Lexington, Kentucky returned a 24-count indictment charging 15 foreign nationals with RICO conspiracy, wire fraud conspiracy, money laundering conspiracy, and aggravated identity theft. Those charged include Andrei-Cătălin Stoica, 28, of Romania; Victor-Aurel Grama, 29, of Romania; Liviu-Sorin Nedelcu, 33, of Romania; Ionuţ Ciobanu, 28, of Romania; Marius-Dorin Cernat, 35, of Romania; Alexandru Ion, 30, of Romania; Ştefan-Alexandru Păiuşi, 33, of Romania; Eugen-Alin Badea, 34, of Romania; Cristişor Olteanu, 31, of Romania; Adrian Mitan, 34, of Romania; Bogdan-Ştefan Popescu, 29, of Romania; Florin Arvat, 24, of Romania; Alin-Ionuţ Dobrică, 26, of Romania; Vlad-Călin Nistor, 31, of Romania, and Rossen Iossifov, 51, of Bulgaria. On Feb. 6, a federal grand jury in Lexington returned an 11-count indictment charging an additional foreign national and four Americans for their roles in the criminal enterprise. Those charged include Beniamin-Filip Ologeanu, 29, of Alexandria, Romania; Austin Edward Nedved, 27, of Northborough, Massachusetts; Dimitrious Antoine Brown, 37, of Macon, Georgia and Rashawd Lamar Tulloch, 30, of Newnan, Georgia. Andrew Gilbert Ybarra II, 25, of Patterson, California, was also charged with conspiracy to commit money laundering. In all, 15 Romanian nationals and one Bulgarian national were charged in these two indictments. Of these, 12 have been extradited to the United States and are awaiting trials, which are currently set for June 18, 2019 and Aug. 7, 2019.
The indictment alleges that these defendants participated in a criminal conspiracy primarily located in Alexandria, Romania that engaged in a large-scale scheme of online auction fraud. Specifically, Romania-based members of the conspiracy and their associates posted false advertisements to popular online auction and sales websites—such as Craigslist and eBay—for high-cost goods (typically vehicles) that did not actually exist. According to the indictment, these members would convince American victims to send money for the advertised goods by crafting persuasive narratives, for example, by impersonating a military member who needed to sell the advertised item before deployment. The members of the conspiracy are alleged to have created fictitious online accounts to post these advertisements and communicate with victims, often using the stolen identities of Americans to do so. They are alleged to have delivered invoices to the victims bearing trademarks of reputable companies in order to make the transactions appear legitimate. Once victims were convinced to send payment, the indictment alleges that the conspiracy engaged in a complicated money laundering scheme wherein domestic associates would accept victim funds, convert these funds to cryptocurrency, and transfer proceeds in the form of cryptocurrency to foreign-based associates. The indictment alleges that these foreign-based money launderers include Vlad-Călin Nistor, who owns Coinflux Services SRL, and Rossen Iossifov, who owns R G Coins. According to the indictment, Nistor and Iossifov exchanged cryptocurrency into local fiat currency on behalf of the Romania-based members of the conspiracy, knowing that they were exchanging bitcoin that represented the proceeds of fraud.
Some of the fraud schemes alleged in the indictments include:
- Nedelcu persuaded victims to send money for the advertised goods by creating fictitious but legitimate sounding entities through which he purported to sell vehicles. For example, he used email address, [email protected], belonging to Aol Autos, to communicate with victims by email with subject lines like, “America Online Autos Financial Department [Order # 099106592090].” The email would contain messages appearing to be legitimate invoices for payment for the advertised item purported to be sold.
- Ciobanu and his coconspirators used the email address [email protected] to communicate with victims about the sale of vehicles, signing the emails as “Sgt. Judith Lane,” and created a Facebook profile for Judith Lane, who was depicted as a member of the Air Force. Ciobanu, acting as “Judith Lane,” also posted two Facebook advertisements for the sale of automobiles.
- Cernat and his coconspirators sent victims invoices that appeared to be from eBay Motors and provided an eBay Motors Support Department phone number and email address of [email protected]. These invoices provided instructions for payment and included reassuring language for secure transactions, such as, “Through OneVanilla Prepaid Visa services we can guarantee you 100 percent protection and insurance in this transaction. eBay Payments will secure the payment until the buyer receives, inspects, and accepts the item. Or, if it will be the case, eBay will refund the payment to the buyer.”
- Păiuşi also convinced victims to send money for the advertised goods by sending them invoices for payment that appeared legitimate. … [One such] invoice appeared to be sent from “eBayTM Buyer Protection,” provided the victim with an email address for questions, described the seller as a “certified eBayTM third-party seller,” and explained that the buyer will be refunded if he or she refuses the merchandise.
- The coconspirators then communicated with the victims via email, often signing their emails by posing as a member of the military, like “Sgt. Logan Burdick.” Other emails purported to be from the online auction company, like eBay. The emails often communicated convincing information about the item being sold and the reason payment was required before shipping or viewing the item.
Adrian Mitan, who was charged in the July 5, 2018 indictment, was also charged in a separate indictment unsealed today with money laundering offenses arising from a credit card phishing and brute-force attack scheme, likewise designed to steal money from Americans. The indictment explains that phishing is an attempt to acquire personal information by masquerading as a trustworthy entity through electronic communications, and brute force is a cryptological trial-and-error methodology used to obtain information such as personal identification numbers for credit cards. Mitan allegedly phished for credit/debit card information of U.S. customers, hacked into the electronic systems of American businesses, and then conducted a brute force attack on their point-of-sale systems for the purpose of stealing the remaining credit/debit card information. According to the indictment, Mitan then directed American money launderers to create “dummy” credit/debit cards with the stolen information, which were used to extract money from the customers’ accounts. These fraudulent proceeds were then returned to Mitan in the form of bitcoin.
The investigation was conducted by the U.S. Secret Service, Kentucky State Police, Lexington Police Department, IRS Criminal Investigation and U.S. Postal Inspection Service, and supported by the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and the International Organized Crime Intelligence and Operations Center (IOC-2). Assistance was provided by the Romanian National Police (Service for Combating Cybercrime) and the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime). The Justice Department’s Office of International Affairs provided significant support with the defendants’ extradition. This case is being prosecuted by Assistant U.S. Attorneys Kathryn M. Anderson and Kenneth R. Taylor of the Eastern District of Kentucky and Senior Trial Attorney Timothy Flowers and Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section with assistance from the Criminal Division’s Money Laundering and Asset Recovery Section.
Individuals believing they may be victims of the advanced fee and online auction fraud or brute-force attack schemes described herein are encouraged to visit the following website to obtain more information: https://justice.gov/usao-edky/information-victims-large-cases. Tips to avoid becoming a victim of online auction fraud can be found here on the U.S. Secret Service’s website.
For the RICO conspiracy and wire fraud conspiracy charges, each defendant faces up to 20 years in prison, a fine of $250,000, and three years of supervised release. The same penalties apply to the money laundering conspiracy charges, except that the fine may be up to $500,000. Additionally, if convicted of identity theft, Brown faces a term of 15 years in prison, a fine of $250,000, and three years of supervised release, and if convicted of aggravated identity theft, those charged face a mandatory-minimum sentence of two years in prison, to be served consecutive to any term of imprisonment ordered for the other counts of conviction. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal statutes.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States and International Law Enforcement Dismantle Online Organized Crime Ring Operating Out of Romania That Victimized Thousands of U.s. ResidentsRead the Press Release
Twelve Foreign Nationals Extradited to the United States
WASHINGTON – According to court documents unsealed today, 20 people, including 16 foreign nationals, have been charged for their roles in an international organized crime group that defrauded American victims through online auction fraud causing millions of dollars in losses.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan, Jr. of the Eastern District of Kentucky, Director Randolph D. Alles of the U.S. Secret Service (USSS), Commissioner Richard W. Sanders of the Kentucky State Police, Chief of Police Lawrence Weathers of the Lexington Police Department, Chief Don Fort of IRS Criminal Investigation and Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service Pittsburgh Division made the announcement.
“The defendants allegedly orchestrated a highly organized and sophisticated scheme to steal money from unsuspecting victims in America and then launder their funds using cryptocurrency,” said Assistant Attorney General Benczkowski. “As the charges and arrests announced today demonstrate, the Criminal Division and our law enforcement partners will vigorously pursue cybercriminals who defraud the American public, regardless of where those criminals may reside.”
“This prosecution stems from a multi-year investigation initiated in Kentucky led by the U.S. Secret Service, in cooperation with several local, state, federal, and international law enforcement partners,” said U.S. Attorney Duncan. “Cooperation of this kind is essential, if we are to be effective in disrupting organized cybercrime, which costs victims from across the United States millions of dollars and has become an increasingly prevalent means for criminals to prey on the public. I commend the exceptional work done by our law enforcement partners, and we are proud to join this cooperative effort to combat cyber fraud schemes.”
“Today’s announcement demonstrates the success of the collaborative efforts of our worldwide network of law enforcement partners. It sends a powerful message and demonstrates the transnational investigative capabilities of the Secret Service,” said Secret Service Director Randolph “Tex” Alles. “This is a shared win for law enforcement across the globe. I would like to thank the more than a dozen law enforcement agencies worldwide who helped us investigate this case, each played a vital role in its success.”
On July 5, 2018, a federal grand jury in Lexington, Kentucky returned a 24-count indictment charging 15 foreign nationals with RICO conspiracy, wire fraud conspiracy, money laundering conspiracy, and aggravated identity theft. Those charged include Andrei-Cătălin Stoica, 28, of Romania; Victor-Aurel Grama, 29, of Romania; Liviu-Sorin Nedelcu, 33, of Romania; Ionuţ Ciobanu, 28, of Romania; Marius-Dorin Cernat, 35, of Romania; Alexandru Ion, 30, of Romania; Ştefan-Alexandru Păiuşi, 33, of Romania; Eugen-Alin Badea, 34, of Romania; Cristişor Olteanu, 31, of Romania; Adrian Mitan, 34, of Romania; Bogdan-Ştefan Popescu, 29, of Romania; Florin Arvat, 24, of Romania; Alin-Ionuţ Dobrică, 26, of Romania; Vlad-Călin Nistor, 31, of Romania, and Rossen Iossifov, 51, of Bulgaria. On Feb. 6, a federal grand jury in Lexington returned an 11-count indictment charging an additional foreign national and four Americans for their roles in the criminal enterprise. Those charged include Beniamin-Filip Ologeanu, 29, of Alexandria, Romania; Austin Edward Nedved, 27, of Northborough, Massachusetts; Dimitrious Antoine Brown, 37, of Macon, Georgia and Rashawd Lamar Tulloch, 30, of Newnan, Georgia. Andrew Gilbert Ybarra II, 25, of Patterson, California, was also charged with conspiracy to commit money laundering. In all, 15 Romanian nationals and one Bulgarian national were charged in these two indictments. Of these, 12 have been extradited to the United States and are awaiting trials, which are currently set for June 18, 2019 and Aug. 7, 2019.
The indictment alleges that these defendants participated in a criminal conspiracy primarily located in Alexandria, Romania that engaged in a large-scale scheme of online auction fraud. Specifically, Romania-based members of the conspiracy and their associates posted false advertisements to popular online auction and sales websites—such as Craigslist and eBay—for high-cost goods (typically vehicles) that did not actually exist. According to the indictment, these members would convince American victims to send money for the advertised goods by crafting persuasive narratives, for example, by impersonating a military member who needed to sell the advertised item before deployment. The members of the conspiracy are alleged to have created fictitious online accounts to post these advertisements and communicate with victims, often using the stolen identities of Americans to do so. They are alleged to have delivered invoices to the victims bearing trademarks of reputable companies in order to make the transactions appear legitimate. Once victims were convinced to send payment, the indictment alleges that the conspiracy engaged in a complicated money laundering scheme wherein domestic associates would accept victim funds, convert these funds to cryptocurrency, and transfer proceeds in the form of cryptocurrency to foreign-based associates. The indictment alleges that these foreign-based money launderers include Vlad-Călin Nistor, who owns Coinflux Services SRL, and Rossen Iossifov, who owns R G Coins. According to the indictment, Nistor and Iossifov exchanged cryptocurrency into local fiat currency on behalf of the Romania-based members of the conspiracy, knowing that they were exchanging bitcoin that represented the proceeds of fraud.
Some of the fraud schemes alleged in the indictments include:
- Nedelcu persuaded victims to send money for the advertised goods by creating fictitious but legitimate sounding entities through which he purported to sell vehicles. For example, he used email address, [email protected], belonging to Aol Autos, to communicate with victims by email with subject lines like, “America Online Autos Financial Department [Order # 099106592090].” The email would contain messages appearing to be legitimate invoices for payment for the advertised item purported to be sold.
- Ciobanu and his coconspirators used the email address [email protected] to communicate with victims about the sale of vehicles, signing the emails as “Sgt. Judith Lane,” and created a Facebook profile for Judith Lane, who was depicted as a member of the Air Force. Ciobanu, acting as “Judith Lane,” also posted two Facebook advertisements for the sale of automobiles.
- Cernat and his coconspirators sent victims invoices that appeared to be from eBay Motors and provided an eBay Motors Support Department phone number and email address of [email protected]. These invoices provided instructions for payment and included reassuring language for secure transactions, such as, “Through OneVanilla Prepaid Visa services we can guarantee you 100 percent protection and insurance in this transaction. eBay Payments will secure the payment until the buyer receives, inspects, and accepts the item. Or, if it will be the case, eBay will refund the payment to the buyer.”
- Păiuşi also convinced victims to send money for the advertised goods by sending them invoices for payment that appeared legitimate. … [One such] invoice appeared to be sent from “eBayTM Buyer Protection,” provided the victim with an email address for questions, described the seller as a “certified eBayTM third-party seller,” and explained that the buyer will be refunded if he or she refuses the merchandise.
- The coconspirators then communicated with the victims via email, often signing their emails by posing as a member of the military, like “Sgt. Logan Burdick.” Other emails purported to be from the online auction company, like eBay. The emails often communicated convincing information about the item being sold and the reason payment was required before shipping or viewing the item.
Adrian Mitan, who was charged in the July 5, 2018 indictment, was also charged in a separate indictment unsealed today with money laundering offenses arising from a credit card phishing and brute-force attack scheme, likewise designed to steal money from Americans. The indictment explains that phishing is an attempt to acquire personal information by masquerading as a trustworthy entity through electronic communications, and brute force is a cryptological trial-and-error methodology used to obtain information such as personal identification numbers for credit cards. Mitan allegedly phished for credit/debit card information of U.S. customers, hacked into the electronic systems of American businesses, and then conducted a brute force attack on their point-of-sale systems for the purpose of stealing the remaining credit/debit card information. According to the indictment, Mitan then directed American money launderers to create “dummy” credit/debit cards with the stolen information, which were used to extract money from the customers’ accounts. These fraudulent proceeds were then returned to Mitan in the form of bitcoin.
The investigation was conducted by the U.S. Secret Service, Kentucky State Police, Lexington Police Department, IRS Criminal Investigation and U.S. Postal Inspection Service, and supported by the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and the International Organized Crime Intelligence and Operations Center (IOC-2). Assistance was provided by the Romanian National Police (Service for Combating Cybercrime) and the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime). The Justice Department’s Office of International Affairs provided significant support with the defendants’ extradition. This case is being prosecuted by Assistant U.S. Attorneys Kathryn M. Anderson and Kenneth R. Taylor of the Eastern District of Kentucky and Senior Trial Attorney Timothy Flowers and Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section with assistance from the Criminal Division’s Money Laundering and Asset Recovery Section.
Individuals believing they may be victims of the advanced fee and online auction fraud or brute-force attack schemes described herein are encouraged to visit the following website to obtain more information: https://justice.gov/usao-edky/information-victims-large-cases. Tips to avoid becoming a victim of online auction fraud can be found here on the U.S. Secret Service’s website.
For the RICO conspiracy and wire fraud conspiracy charges, each defendant faces up to 20 years in prison, a fine of $250,000, and three years of supervised release. The same penalties apply to the money laundering conspiracy charges, except that the fine may be up to $500,000. Additionally, if convicted of identity theft, Brown faces a term of 15 years in prison, a fine of $250,000, and three years of supervised release, and if convicted of aggravated identity theft, those charged face a mandatory-minimum sentence of two years in prison, to be served consecutive to any term of imprisonment ordered for the other counts of conviction. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal statutes.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
- Nedelcu persuaded victims to send money for the advertised goods by creating fictitious but legitimate sounding entities through which he purported to sell vehicles. For example, he used email address, [email protected], belonging to Aol Autos, to communicate with victims by email with subject lines like, “America Online Autos Financial Department [Order # 099106592090].” The email would contain messages appearing to be legitimate invoices for payment for the advertised item purported to be sold.
U.S. Marshals Arrest Kay County Murder Suspect Who Fled to MexicoRead the Press Release
Please see the following press release from the U.S. Marshals Service concerning the arrest of a Kay County, Oklahoma, murder suspect who fled to Mexico.
NEWS RELEASE
FOR IMMEDIATE RELEASE
Feb 7, 2019
USMS 19-08
Contact:
Supervisory Deputy Cal Stephens (405) 231-3765
Western District of Oklahoma
USMS Office of Public Affairs (703) 740-1699
US MARSHALS 15 MOST WANTED MURDER SUSPECT WANTED FOR
STABBING EX-WIFE, FORMER COP 41 TIMES IN FRONT OF CHILDREN ARRESTED
Tip generated from John Walsh’s television show leads to fugitive’s capture
WASHINGTON – The manhunt for 15 Most Wanted fugitive Luis Octavio Frias ended last night. A tip generated from the television show “In Pursuit with John Walsh” led authorities to Jalisco, Mexico, where Frias was located and arrested at approximately 7:30 p.m. EST Wednesday, Feb. 6.
Frias, 34, allegedly stabbed his ex-wife, Janett Reyna, 41 times in front of her young children in August 2013. Reyna, a former police officer with the Blackwell (Oklahoma) Police Department, had filed a protection order against Frias just two days prior to her death. The Kay County (Oklahoma) Sheriff’s Office issued a warrant for his arrest and sought the assistance of the U.S. Marshals to find him.
“The arrest of Luis Octavio Frias allows a wounded community to start healing and stands as a testament to the crucial role the public plays in helping us locate and arrest dangerous fugitives,” said U.S. Marshals Service Acting Deputy Director David Anderson. “We especially thank John Walsh and his team for their commitment to law enforcement and for featuring Frias on his show.”
The fugitive investigation for Frias gained momentum when an anonymous tipster contacted the U.S. Marshals after watching the fugitive’s profile on the television show. The information provided allowed investigators to develop substantial information about his possible whereabouts in Mexico. The U.S. Marshals’ Mexico Foreign Field Office worked closely with Mexican authorities, who were able to narrow the location to a suburb of the city of Guadalajara in Jalisco.
“Countless hours of collaborative investigative work and sheer determination have finally brought Frias to justice,” said U.S. Marshal Johnny Lee Kuhlman of the Western District of Oklahoma. “With the help of our federal, state, local and international partners, Frias’ arrest sends a strong, clear message to anyone attempting to flee the country to avoid prosecution that justice has no boundaries.”
When Frias arrived back on U.S. soil Thursday, U.S. Marshals used the same handcuffs issued to Reyna by the Blackwell Police Department to take the fugitive into custody.
“In so many ways, those handcuffs represented poetic justice not only for the victim, but for her children, her brothers and sisters in blue, and her community,” said Kuhlman.
Frias is currently in U.S. Marshals custody in Dallas awaiting extradition back to Oklahoma.
U.S. Attorney Fallen Law Enforcement Officer Statement of SupportRead the Press Release
United States Attorney for the Eastern District of Wisconsin Matthew D. Krueger issued the following statement regarding Milwaukee Police Officer Matthew Rittner, who was shot and killed in the line of duty yesterday: “Our heartfelt condolences go out to Officer Rittner's family, friends, and law enforcement colleagues. Officer Ritter selflessly dedicated himself to protecting the residents of the City of Milwaukee, and his death is a tragic loss for the entire community. His sacrifice and service will not be forgotten.”
# # # # #
For Additional Information Contact:
Public Information Officer Kenneth B. Gales – (414) 297-1700
Two South Florida Doctors Arrested on Charges of Unlawfully Dispensing OpioidsRead the Press Release
Two South Florida doctors were arrested on charges related to the unlawful dispensing of opioids.
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, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Miami Regional Office, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Ashley B. Moody, Florida Attorney General, made the announcement.
Dr. Victor Hugo Espinosa, 57, of Fort Lauderdale, Florida is charged by criminal complaint with conspiring to unlawfully dispense controlled substances from August 9, 2017 to May 3, 2018. According to the complaint, as the designated physician at East Medical Office Inc., a pain clinic located in Hialeah Florida, Espinosa provided over 1,000 prescriptions for Oxycodone for no legitimate medical purpose in exchange for cash. During his time at East Medical, Espinosa prescribed approximately 119,534 tablets of Oxycodone, which accounted for approximately 99% of all controlled substances he prescribed at East Medical. Many of the patients to whom Espinosa prescribed Oxycodone were brought to East Medical by patient recruiters, who received and then illegally sold all or a portion of the Oxycodone Espinosa prescribed.
Dr. Rodolfo Gonzalez-Garcia, 65, of Weston, Florida, is charged by indictment, along with his wife Arlene Gonzalez, 60, of Weston, Florida, Sucett Lopez, 36, of, Hialeah, Florida, Annie Suarez-Gonzalez, 35, of Westmont, Illinois, and Fidel Marrero-Castellanos, 56, of Miami, Florida. The indictment alleges that between November 2016 and September 2018, Gonzalez-Garcia was the physician provider for West Medical Office, Inc. in Hialeah, Florida. Marrero-Castellanos and others recruited Medicare and Medicaid beneficiaries as patients to West and paid Gonzalez-Garcia, Gonzalez, Lopez and Suarez-Gonzalez, and others, for Oxycodone and OxyContin prescriptions.
Each defendant faces a maximum statutory sentence of 20 years’ imprisonment. The defendants had their initial appearance today in Miami, Florida before U.S. Magistrate Judge Edwin G. Torres. Pre-trial detention hearings have been scheduled, for Dr. Gonzalez-Garcia and Marrero-Castellanos, on February 12, 2019.
An indictment and a criminal complaint are charging instruments containing allegations. Every defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Today’s enforcement actions were coordinated by the U.S. Attorney’s Office for the Southern District of Florida, the Department of Justice’s Criminal Division Fraud Section’s Health Care Fraud Unit, the FBI, HHS, DEA, USSS and Florida Attorney General’s Medicaid Fraud Control Unit. They were initiated as part of the Medicare Fraud Strike Force. The cases are being prosecuted by Assistant U.S. Attorneys Brian J. Shack and Michael Gilfarb.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and the U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Three Federal Cases Allege Illegal Importation and Sale of ‘Herbal’ Sexual Enhancement Pills that Contained Pharmaceutical DrugsRead the Press Release
LOS ANGELES – Four companies and three individuals have agreed to plead guilty to federal criminal charges related to the illegal importation and sale of $11 million worth of pharmaceutical-grade erectile dysfunction drugs that were falsely marketed as herbal remedies for men.
Federal prosecutors today filed two new cases against distributors of the misbranded drugs.
In one of the cases filed today in United States District Court, Jin Su Park, 40, of Hacienda Heights, agreed to plead guilty to one felony count of importing contraband into the United States and one felony count of introducing misbranded drugs into interstate commerce. Park’s company, RNG Global Management and Trading Group, Inc., based in Rowland Heights, agreed to plead guilty to two felony counts of introducing misbranded drugs into interstate commerce.
In another case filed today, Lancaster Distributors, Inc., a Salem, Oregon-based company, and one of its employees, Matthew Burroughs, 42, of Salem, each agreed to plead guilty to one misdemeanor count of conspiracy to introduce misbranded drugs into interstate commerce.
Last month, Park’s friend and former colleague, John Seil Lee, 40, of Walnut, agreed to plead guilty to a seven-count information that charged him with felony counts of conspiracy, importing contraband into the United States, filing a false tax return, and introducing misbranded drugs into interstate commerce. Lee’s companies – KHK International Trade Enterprise, Inc., and SHH World Trading Enterprises, Inc. – also agreed to plead guilty to the charges.
According to the documents filed in Lee’s case, from 2011 through early 2017, Lee illegally imported shipments of powder Tadalafil – a prescription drug used to treat erectile dysfunction and sold under the brand name Cialis – from suppliers in China. Lee then manufactured the powder Tadalafil into at least 5.5 million pills that he sold to distributors across the United States. In order to boost sales, Lee made the pills with up to 14 times the level of Tadalafil contained in Cialis, court papers state.
Lee sold at least $11 million worth of pills across the United States – under names such as “X Again,” “X Monster” and “Royal Master” – with labels that did not disclose the presence of Tadalafil and falsely stated that no prescription was necessary, according to court documents. Lee also continued selling the pills despite FDA announcements that the pills were tainted because they contained undeclared Tadalafil. In order to evade federal regulators, Lee relabeled the tainted pills in response to FDA announcements about their safety, the information states. For example, in August 2016, after the FDA announced that SHH’s “One More Knight” pills contained undisclosed Tadalafil, Lee rebranded the same pills as “Own the Knight” and continued selling them.
After Lee closed SHH following the execution of federal search warrants in February 2017, his friend Park set up RNG Global to operate as a copycat business, according to Park’s plea agreement. Park took 14,000 of Lee’s pills, rebranded them as “EEZZY UP PLATINUM,” and sold them to Lee’s former distributors across the country. EEZZY UP’s packaging also failed to disclose that the pills contained Tadalafil.
In its plea agreement, Lancaster admitted that it purchased from Lee at least 153,000 male sexual enhancement pills containing Tadalafil for approximately $362,000. Burroughs admitted to purchasing the mislabeled drugs on behalf of Lancaster.
The arraignments for Lee, KHK, and SHH have been scheduled for February 19. Once he pleads guilty, Lee will face a statutory maximum sentence of 20 years for the smuggling count, five years for the conspiracy count, and three years for the tax count.
The arraignments for Park, RNG Global, Burroughs, and Lancaster have been scheduled for March 18. Park faces a statutory maximum sentence of 20 years for the smuggling count and three years for the distribution count. Burroughs faces a statutory maximum sentence of one year in prison.
The FDA’s approval of Cialis is limited to the use under the supervision of a licensed professional. Due to toxicity and other potentially harmful effects – including life-threatening drops in blood pressure, loss of vision, loss of hearing and prolonged, painful erections that can result in permanent injury – drugs similar to Cialis are not safe for use except under the supervision of a medical practitioner.
The investigation into these cases was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Food and Drug Administration’s Office of Criminal Investigations and IRS Criminal Investigation.
The cases are being prosecuted by Assistant United States Attorney Matthew W. O’Brien of the Environmental and Community Safety Crimes Section.
Hidden active pharmaceutical ingredients have been identified in products promoted not only for sexual enhancement, but also for bodybuilding, pain relief and weight loss. The FDA has issued hundreds of public warnings and recall announcements related to these types of fraudulent products. The FDA’s Tainted Products database can help consumers identify some of these potentially harmful products. Even if a product is not included in the list, consumers should be cautious about using certain products, especially those promoted for sexual enhancement, weight loss, bodybuilding and pain relief.
Texas couple sentenced to prison; they were the most prolific dark net fentanyl vendor in the world at the time of their arrest last yearRead the Press Release
A San Antonio couple that was the most prolific dark net fentanyl vendor in the world at the time of their arrest last year were sentenced to prison.
Matthew Roberts, 36, was sentenced to 135 months in federal prison. Holly Roberts, 35, was sentenced to 96 months in federal prison.
The Roberts’ operated MH4LIFE and a variety of other dark net marketplace accounts. They previously pleaded guilty to conspiracy to distribute controlled substances, money laundering, identity theft and other crimes.
According to court documents:
The Roberts’ created and operated several dark net marketplace accounts, including MH4LIFE, TRAPPEDINTIME, FASTFORWARD and MRHIGH4LIFE. They operated these accounts on nearly a dozen dark net marketplaces including Dream Market, Silk Road, AlphaBay, Darknet Heroes League, Nucleus and several others.
They used these accounts between 2013 and May 12, 2018 to possess and distribute fentanyl, MethoxyAcetylFentanyl (MAF), other fentanyl analogues, heroin, cocaine, methamphetamine, MDMA, LSD, marijuana, Xanax, Oxycodone and other drugs.
The Roberts’ MH4LIFE vendor account on Dream Market had 2,800 verified transactions with a 4.89/5 rating as of May 2018. Dream listed that MH4LIFE had 500 verified transactions on the Agora marketplace and 719 transactions on the Nucleus marketplace. The only products listed for sale by MH4LIFE were illegal narcotics. The majority of available reviews detailed customers purchasing fentanyl and fentanyl analogues.
MH4LIFE had the highest number of verified transactions worldwide of any fentanyl vendor based upon a review of Dream Market.
The Roberts’ used private messaging, encryption software, Virtual Private Networks and proxies through the TOR network to provide security for the criminal organization. They used decoys, such as glow bracelets and other mundane items, to hide the fact they were mailing narcotics. They also purchased postage from third parties with cryptocurrency in an effort to conceal their activities.
Customers used digital currency to purchase narcotics, which the defendants sent to digital currency exchanges, where the funds were converted into official fiat currency and spent on person goods and services, as well as prepaid Visa and gift cards. The Roberts’ also used advanced identity theft techniques to hide their identity from cryptocurrency and other financial institutions, in order to thwart Know Your Customer protocols.At the time of arrest, law enforcement found Matthew Roberts in a hotel room surrounded by fentanyl, other narcotics, devices used to access the dark net, cryptocurrency wallets, drug ledgers and cash. Holly Roberts was found in their home, which also contained drug ledgers and narcotics.
“The mechanics of drug dealing has changed, and law enforcement has changed with it,” U.S. Attorney Justin E. Herdman said. “These cases demonstrate that those who think they are hiding behind a cloak of anonymity on the dark net will be uncovered and brought to justice for selling the drugs killing our friends and neighbors.”“This investigation and today’s sentencing marks a final blow to what we now know was one of the largest fentanyl distributors operating on the dark web,” said Homeland Security Investigations Special Agent in Charge Steve Francis. “As this case makes clear, HSI and our partners are united in our resolve to protect our communities and our country from the scourge of drug trafficking. We stand ready to use every tool and resource at our disposal to attack and dismantle these organizations, regardless of where they operate.”
“The U.S. Postal Inspection Service is fully dedicated to protecting the American public,” said Inspector in Charge Tommy D. Coke. “One of the ways we fulfill this mission is by working tirelessly with other law enforcement agencies in operations just like this one to keep dangerous drugs out of the communities we serve.”
"The Roberts’ utilized the dark web in an attempt to keep their dangerous drug dealing behavior hidden from law enforcement,” said FBI Special Agent in Charge Eric B. Smith. “This significant sentence should serve as notice to anyone dealing illegal drugs online that law enforcement will join efforts and bring their reign to an end."
These cases are the result of Operation Darkness Falls, a joint investigation involving Homeland Security Investigations, U.S Postal Inspection Service, the FBI and the Internal Revenue Service – Criminal Investigations. Federal agents around the country, including in the Western District of Texas, Western District of Pennsylvania, Middle District of Florida and elsewhere, have assisted in the ongoing operation.
These cases are being prosecuted by Assistant U.S. Attorney Matthew J. Cronin and Daniel J. Riedl.Statement by United States Attorney John W. Huber Regarding Recent Violence Targeting Law Enforcement OfficersRead the Press Release
“When offenders attack law enforcement officers, they attack the individuals who protect us and help maintain law and order in our nation. Each account of a fallen officer is an indescribable tragedy for the family, colleagues, and friends of the officer. As community members, we share this pain and sense of loss. Unfortunately, the headlines describing these attacks are becoming all too common. In Utah, officers are no less immune to violence than those injured in recent weeks in Houston and Denver; or those who lost their lives in Sacramento and Mobile in January or in Milwaukee this week.
“Utah officers David Romrell of South Salt Lake and Joseph Shinners of Provo offered the ultimate sacrifice for our state and nation in December and January. These tragedies do not need to happen. Their families should not have to bear this heavy burden. As a nation, state, and community, we cannot tolerate attacks on those who protect our property and us. We must work together for answers to help curb violence against law enforcement officers.
“I am joining a chorus of other United States Attorneys across our nation to renew our pledges this week to support the men and women of law enforcement, to remember their sacrifices, and to hold accountable those who dare focus violence upon them. In Utah, we should look for opportunities to express gratitude to law enforcement officers; and to encourage respect for them in our communities and within our families. Law enforcement professionals protect us every day. We should return the favor and have their backs, too. #BackTheBlue.”
St. Louis Man Sentenced to 14 Years for Meth, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A St. Louis, Mo., man who was found passed out at an Oak Grove, Mo., truck stop after a week-long bender has been sentenced in federal court for illegally possessing methamphetamine and a firearm.
James P. Pettus, 40, was sentenced by U.S. District Judge Brian C. Wimes on Wednesday, Feb. 6, 2019, to 14 years and two months in federal prison without parole.
On Sept. 26, 2018, Pettus pleaded guilty to possessing methamphetamine with the intent to distribute and to possessing a firearm in furtherance of a drug-trafficking crime.
Pettus was contacted by an Oak Grove, Mo., police officer at Petro Truck Stop, 301 S.W. 1st Street, Oak Grove, on the morning of May 21, 2018. The officer was called because Pettus was passed out in a booth inside the Iron Skillet Restaurant. He was asleep and snoring, with his face and arms covered in saliva and snot. After many attempts to wake him, he would only advise that his name was James, and could not provide identification.
The officer called an ambulance for Pettus. While waiting for the ambulance, Pettus pulled a knife from his right rear pant pocket and flipped it open. The officer struggled briefly with Pettus to take away the knife and handcuff him. The officer then found a loaded High Point .45-caliber semi-automatic handgun in Pettus’s front waistband. Officers also found approximately 40.9 grams of pure methamphetamine in Pettus’s left front pocket.
Pettus later told detectives he had been on a methamphetamine-fueled bender for the past week.
This case was prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Oak Grove, Mo., Police Department, the Jackson County Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
St. Louis Man Pleads Guilty to Felon in Possession of a FirearmRead the Press Release
St. Louis, MO – Joey P. Foster, 44, of St. Louis, pled guilty to felon in possession of a firearm stemming from his arrest on pending assault charges in St. Louis City on May 28, 2018. He appeared in federal court this afternoon before U.S. District Judge Ronnie White who accepted his plea and set sentencing for May 8, 2019.
According to court documents, on May 28, 2018, JH and LD were sitting in their car in the 3000 block of Dr. Martin Luther King Drive when a car driven by Foster pulled up and made a U-turn. As Foster attempted to pull into a vacant space, he struck JH and LD’s parked car. As Foster was parking his car to discuss the accident, LD (female passenger) banged her right hand on the rear of Foster’s car. While inspecting the damage, JH, LD and Foster got into an argument. Foster then fled the scene. Foster was apprehended a short time later in possession of a Smith & Wesson 9mm firearm and admitted he was a convicted felon.
Foster faces up to 10 years’ imprisonment, a $250,000 fine or both. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis Metropolitan Police Department. United States Attorney Tom Mehan is handling the case for the U.S. Attorney's Office.
St. Louis Man Pleads Guilty to Distributing More than 400 Grams of FentanylRead the Press Release
St. Louis, MO – Larry Weeden, Jr., 39, of St. Louis, pleaded guilty to possession of one or more firearms as a previously convicted felon and possession with intent to distribute more than 400 grams of fentanyl today in United States District Court in St. Louis. The charges stem from the execution of a search warrant for an apartment in the 3700 block of Wisconsin in St. Louis City. Weeden appeared before Federal District Judge Ronnie L. White, who accepted his guilty plea and set his sentencing for May 8, 2019.
According to the guilty plea agreement, investigators learned Weeden was distributing fentanyl and storing significant amounts of the drug in the apartment, causing them to seek a state-level search warrant in July of 2018.
During the execution of the warrant, investigators located six (6) loaded semi-automatic pistols, including a Glock 23 .40 caliber handgun with an extended magazine and a Springfield XD .45 caliber handgun which was later determined to have been stolen.
Investigators recovered approximately 740 grams of fentanyl in total, including a large compressed brick of fentanyl and baggies of fentanyl packaged in smaller quantities, and approximately 130 grams of methamphetamine in powder and pill form. They also located drug trafficking paraphernalia including a gas mask, cutting agents, and digital scales, as well as a money counting machine and approximately $46,000 in United States currency.
Weeden faces up to ten years imprisonment for the felon in possession charge and up to life imprisonment for possession with intent to distribute fentanyl, which also carries a ten-year mandatory minimum term due to the quantity of fentanyl involved.
This case was investigated by the St. Louis Metropolitan Police Department and the Federal Bureau of Investigation.
St. Francis Woman Sentenced for Involuntary Manslaughter and Criminal ContemptRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, woman convicted of Involuntary Manslaughter and Criminal Contempt was sentenced on February 4, 2019, by U.S. District Judge Roberto A. Lange.
Omalewin Neck, age 25, was sentenced to 36 months in federal prison for Involuntary Manslaughter, and 2 months in federal prison for Criminal Contempt, with the sentences to be served consecutively, followed by 3 years of supervised release. Neck was also ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $110, and to pay restitution of $1,500. Additional restitution may apply.
Neck was indicted by a federal grand jury on the Involuntary Manslaughter charge on January 17, 2018. She pled guilty on August 7, 2018.
The Involuntary Manslaughter conviction stemmed from an incident that occurred near St. Francis on the evening of October 1, 2017. On that date, Neck had been consuming alcohol, and was driving a car northbound on BIA 1 south of St. Francis. The victim, an adult female, was seated in the front passenger seat. As Neck approached St. Francis at a high rate of speed, she lost control of the vehicle and left the roadway. The vehicle rolled multiple times, causing Neck and the victim to be ejected from the vehicle. The victim died as a result of injuries suffered in the wreck. Neck sustained serious injuries in the wreck and was hospitalized.
On December 1, 2018, Neck was in custody pending sentencing for Involuntary Manslaughter, and was granted a furlough to attend a funeral. She did not go to the funeral and instead went to the Ft. Randall Casino Hotel in Lake Andes, South Dakota, and consumed alcoholic beverages. She was arrested later that day at the Ft. Randall Casino Hotel. Based on the foregoing, on December 11, 2018, Neck was indicted by a federal grand jury on the Criminal Contempt charge. She pled guilty on January 23, 2019.
The cases were investigated by the Rosebud Sioux Tribe Law Enforcement Services, the U.S. Marshals Service, and the Yankton Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the cases.
Neck was immediately turned over to the custody of the U.S. Marshals Service.
South Bend Man Convicted Following 2-Day Jury TrialRead the Press Release
SOUTH BEND – Brandon Edelman, age 32, of South Bend, Indiana was convicted of possession of methamphetamine with intent to distribute, possession of a firearm in connection with a drug trafficking offense, and possession of a firearm after having previously been convicted of a felony, announced U.S. Attorney Kirsch.
U.S. District Court Judge Robert L, Miller, Jr, presided over this 2-day trial.
According to evidence presented at trial, Edelman led South Bend Police officers on a high speed chase for thirteen minutes at speeds up to 100 miles per hour. While Edelman drove the car, his passenger threw a firearm out of the window. After he was apprehended, he told police that he told the passenger to throw the gun out and that he possessed the gun for protection during his drug dealing. Police found methamphetamine on Mr. Edelman. After he was apprehended, police retraced the route and found the gun Edelman admitted was thrown from the car. Edelman had been convicted of at least one prior felony offense.
Sentencing of Mr. Edelman has been set for May 15, 2019.
The case was investigated by the DEA with assistance from ATF, South Bend Police, and the Indiana State Police. The case was prosecuted by Assistant United States Attorney Joel Gabrielse.
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Snyder Dentist Convicted by A Jury of Tax Charges Is Going to PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Charles Weber, 63, of Snyder, NY, who was convicted following a jury trial of making and subscribing a false tax return, was sentenced to serve 30 months in prison by U.S. District Judge Richard J. Arcara. Weber was also ordered to pay restitution totaling $190,547 to the Internal Revenue Service.
Assistant U.S. Attorneys MaryEllen Kresse and Stephanie Lamarque, who handled the prosecution of the case, stated that, prior to 2009, the defendant was a dentist operating a private dental practice in Williamsville, NY. In April 2009, Weber filed tax returns for the 2006 and 2007 tax years falsely stating that he was not a United States citizen and had not been present in the United States at any time during 2006 or 2007. Weber also falsely stated that his only taxable income in 2006 and 2007 came from dividends.
The defendant was born in the United States, lived in Snyder and worked in Williamsville, and knew that he was a United States citizen and that he had been living and working in the United States in 2006 and 2007. Weber also knew that in 2006 and 2007, in addition to his income from dividends, his gross receipts from his dental business had been in excess of $297,000 for 2006 and in excess of $283,000 for 2007.
Today’s sentencing is the result of an investigation by Special Agents with the Internal Revenue Service, Criminal Investigation, under the direction of Acting Special Agent-in-Charge Jonathan D. Larsen, New York Field Office.
Six people indicted for their roles in $48 million health care fraud conspiracy at drug and alcohol rehabilitation centers in Austintown and WhitehallRead the Press Release
Six people from Ohio were indicted in federal court for their roles in a health care fraud conspiracy in which Medicaid was billed $48 million for drug and alcohol recovery services which were not provided, not medically necessary, lacked proper documentation, or had other issues that made them ineligible for reimbursement.
Named in the 60-count indictment unsealed in U.S. District Court in Cleveland are: Ryan P. Sheridan, 38, of Leetonia; Jennifer M. Sheridan, 40, of Austintown; Kortney L. Gherardi, 29, of Girard; Lisa M. Pertee, 50, of Sunbury; Thomas Bailey, 44, of Poland, and Arthur H. Smith, 54, of Austintown.
All six are charged with conspiracy to commit health care fraud related to their work at Braking Point Recovery Center, which operated drug and alcohol rehabilitation facilities in Austintown and Whitehall, Ohio.
Additional counts include health care fraud, money laundering, operating a drug premises, conspiracy to distribute controlled substances, use of a registration number issued to another to obtain controlled substances, and other offenses.
According to the indictment:
Ryan Sheridan was the sole owner of Braking Point Recovery Center, which operated drug and alcohol rehabilitation centers in Austintown and Whitehall, Ohio, that provided detox, intensive outpatient treatment, day treatment and residential living rehabilitation.
Sheridan also owned and operated numerous other businesses, including Breaking Point Health and Fitness LLC and Braking Point Recovery Housing LLC, which owned recovery houses (or “sober houses”) for individuals attempting to maintain abstinence from drugs and alcohol.
As part of being a certified provider, Sheridan agreed to follow the rules and regulations of the Ohio Medicaid Program and the Ohio Department of Mental Health and Addiction Services.
Between January 2015 and October 18, 2017, various defendants submitted or caused to be submitted billings to Medicaid for drug and alcohol services that were: coded to reflect a service more costly than was actually provided; without proper documentation; without proper assessment documents containing valid diagnosis; billings for patients whose records did not contain diagnosis by a physician; related to treatment at unlicensed inpatient beds; billings related to Bailey dispensing of Suboxone even though Bailey did not have the authority to do so; for case management services when, in fact, the clients were working out at Sheridan’s gym; billings based on quotas provided to the nurses by the defendants to bill four to five hours of treatment daily, even if the services were not medically necessary; billing for in-patient detox and drug treatment services that were, in fact, provided in an out-patient setting, among other violations.
Braking Point submitted approximately 134,744 claims to Medicaid for more than $48.5 million in services it claimed to provide between May 2015 and October 2017. The claims caused Medicaid to pay Braking Point more than $31 million. Medicaid suspended payments to Braking Point on October 18, 2017.
The Sheridans, Gherardi, Bailey and Smith are also accused of conspiring to develop a standard protocol of distributing the same amount of Suboxone to every patient seeking drug treatment immediately upon entering Braking Point’s detox program without being evaluated by a properly licensed physician to determine the medical necessity for the use of Suboxone.
The Sheridans, Gherardi and Bailey used Smith’s DEA data waiver license to dispense more than 3,000 doses of Suboxone in 2017 alone without Smith having seen the patients. Smith held himself out to be Braking Point’s medical director but only went to Braking Point approximately twice a month.
Ryan Sheridan is also accused of making numerous financial transactions involving money derived from unlawful activities, including health care fraud and conspiracy to commit health care fraud.
Prosecutors are also seeking for forfeit property and proceeds obtained as a result of these crimes, including nearly $3 million, property in Columbiana, Mahoning and Trumbull counties, and eight automobiles, including replicas of vehicles used in the movies “Back to the Future,” “Ghostbusters” and “Batman.”
“These defendants are accused of stealing tens of millions of dollars from taxpayers through fraudulent billing and other crimes,” U.S. Attorney Justin Herdman said. “Treatment for people struggling with drug and alcohol addiction is vitally important, but, as alleged in this case, these defendants profited off the suffering of others. We will hold accountable anyone who tries to illegally take advantage of the drug epidemic.”
“Individuals who are recovering from opioid and alcohol abuse that seek assistance need to have the utmost confidence and trust in those who are providing their care”, said Lamont Pugh III, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “That trust and confidence was violated by these defendant’s in order to pursue their own financial gain and waste vital taxpayer dollars. The OIG will continue to work with our federal, state and local partners to ensure that those who commit criminal acts to unjustly enrich themselves are held accountable.”
“While patients from the community were receiving treatment for their addictions, these individuals were allegedly engaged in fraudulent billing and other financial schemes to bilk taxpayers out of millions of dollars,” said FBI Special Agent in Charge Eric B. Smith. “The FBI will continue to work with our law enforcement partners and healthcare industry to identify those illegally cheating the system for the benefit of their own pockets.”
“The conduct detailed in this indictment is egregious and exposed these defendants for who they really are, thieves. They defrauded the health care system for their own personal gain," stated Ryan Korner, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati Field Office. “IRS-CI is committed to collaboratively working to unravel complex fraud and money laundering schemes and ensuring those responsible are deprived of the fruits of these crimes.”
“While the vast majority of the healthcare professionals in this country are committed to saving lives, there are a few who are merely drug dealers hiding in plain view, and driven by greed,” said DEA Special Agent in Charge Timothy J. Plancon. “These arrests reiterate the Drug Enforcement Administration’s commitment to making our communities safer from illicit drugs, diverted pharmaceuticals, and fraud.”
“These scams are a sucker punch in the face to every family with loved ones struggling with addiction,” Ohio Attorney General Dave Yost said. “We will work with our partners to achieve justice — and get our money back.”
This case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General, the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigations, the Drug Enforcement Administration and the Ohio Attorney General’s Medicare Fraud and Corruption Unit. It is being prosecuted by Assistant U.S. Attorneys Mark Bennett and Maritsa Flaherty and Special Assistant U.S. Attorney Jonathan Metzler.
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 records, 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 the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sioux Falls Man Charged with Wire Fraud and Money LaunderingRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury on 11 counts of Wire Fraud and Money Laundering.
Paul Erickson, age 57, was indicted on February 5, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 6, 2019, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison for each count, and/or a $250,000 fine for wire fraud, and/or a $500,000 fine for money laundering, 3 years of supervised release, and up to $1,100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about 1996, through August of 2018, Erickson knowingly and unlawfully devised a scheme and artifice to defraud and to obtain money from many victims by means of false and fraudulent pretense, representations, and promises. Erickson owned and operated Compass Care, Inc., Investing with Dignity, LLC, and an unnamed venture to develop land in the Bakken oil fields in North Dakota. Erickson made various false and fraudulent representations to individuals located in South Dakota and elsewhere, to induce those investors to give him money to invest in his businesses, which were part of a scheme to defraud them and personally enrich Erickson.
The charges are merely accusations and Erickson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Erickson was released on bond. A trial date has not been set.
Serial Robber Sentenced to 10 Years in Federal Prison for Four Armed Commercial RobberiesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Deniro Southern-Robinson, age 21, of Largo, Maryland, today to 10 years in prison, followed by five years of supervised release, for committing a series of armed robberies in which he brandished a gun.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to his guilty plea, between December 29, 2016 and January 7, 2017, Southern-Robinson and his co-defendants, Joshua Isaiah Potter and Deandre Denzil Proctor, conspired to commit a series of robberies of businesses. In each robbery, Southern-Robinson and Proctor entered the locations, brandished a gun, and robbed the employees of the proceeds of the business, while Potter served as a lookout during the robberies and drove the getaway vehicle.
Specifically, in less than two hours in the early morning of December 29, 2016, Southern-Robinson and his accomplices robbed three businesses in Myersville, Frederick, and Bethesda, Maryland. In each robbery, Southern-Robinson brandished a silver revolver and Proctor brandished a BB gun. Both men covered their faces with bandanas or masks. In the first robbery, they confronted an employee and demanded to know where the safe was. The victim informed them that there was no safe and began pushing one of the robbers before noticing that both appeared to be brandishing firearms. Southern-Robinson and Proctor emptied the cash registers into their pockets, stealing approximately $517. As they fled, they threatened to kill the employee if he/she called the police. In the other two robberies, Southern-Robinson and Proctor confronted employees and demanded they open the cash registers, stealing $232 and $350, respectively. Potter was the lookout and getaway driver for each robbery.
On January 7, 2017, Potter drove the robbers to a business in Myersville, Maryland. Southern-Robinson and Proctor entered the business, again brandishing a silver revolver and BB gun, respectively, and wearing masks to cover their faces. The robbers confronted two store employees, with Proctor pointing the BB gun at the chest of one of the victim store employees, and asked for the safe. The victim led them to where the safe was located and Southern-Robinson removed cash from the safe and put it in a duffel bag. Southern-Robinson and Proctor stole approximately $773. Potter served as the getaway driver after the robbery was completed.
Several minutes later, law enforcement officers saw Potter’s vehicle traveling from the direction of the business and initiated a traffic stop. Proctor, the front seat passenger, was wearing the same distinctive tiger-striped shoes he had worn in the December 29th robberies. Law enforcement arrested the defendants and obtained a search warrant for the vehicle. Law enforcement seized the silver revolver, a .22-caliber loaded with four rounds of ammunition, from the right rear passenger door, where Southern-Robinson had been seated. From the front passenger floor, where Proctor was sitting, law enforcement recovered black clothing that matched the clothing worn during the robberies, a black BB gun, and the duffel bag that had been used in the robberies. Law enforcement also recovered $789 from the pouch on the back of the front passenger seat, where Southern-Robinson has been seated, and three cell phones, among other items. Additional search warrants were executed at the residences of Southern-Robinson and Proctor that recovered additional cash and other clothing worn during the December 29th robberies.
Deandre Denzil Proctor, age 22, of Upper Marlboro, Maryland, and Joshua Isaiah Potter, age 22, of District Heights, Maryland, pleaded guilty to their roles in the robberies. Judge Grimm has scheduled sentencing for Potter on May 3, 2019 at 2:30 p.m. and for Proctor on May 6, 2019 at 9:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI Cross Border Task Force, the Montgomery County Police Department, the Frederick County Sheriff’s Office, and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Elizabeth G. Wright, who is prosecuting the case.
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Rosebud Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on February 4, 2019, by U.S. District Judge Roberto A. Lange.
Tyrone Steven Andrews, age 26, was sentenced to 15 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Andrews was indicted by a federal grand jury on August 14, 2018. He pled guilty on December 12, 2018.
Andrews was convicted of Abusive Sexual Contact in July 2016. As a result of this conviction, he is required to register as a sex offender. On July 2, 2018, Andrews registered his address as the Union Gospel Mission in Sioux Falls; on July 5, 2018, Andrews absconded from the Union Gospel Mission and failed to update his registration between July 8, 2018, and August 14, 2018.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Andrews was immediately turned over to the custody of the U.S. Marshals Service.
Rikers Inmate Arrested for Attempting to Hire Hitman to Murder His Half-BrotherRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John B. Devito, Special Agent-in-Charge of the New York Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Cynthia Brann, Commissioner of the New York City Department of Correction, announced that ANTHONY TEJADA, a/k/a “YM,” an inmate at the Rikers Island correctional facility, was arrested yesterday for attempting to hire a hitman to murder his half-brother. TEJADA was presented today in Manhattan federal court before U.S. Magistrate Judge Ona T. Wang.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, while incarcerated at Rikers Island, Anthony Tejada attempted to hire a hitman to murder his half-brother. Now, thanks to the dedicated work of our law enforcement partners, Tejada’s alleged plan has been foiled, he faces federal charges, and his intended victim is safe.”
ATF Special Agent-in-Charge John B. Devito said: “As alleged, Tejada’s actions could have resulted in serious bodily harm and or the death of an innocent individual. Thanks to the efforts of the ATF/ NYPD Joint Robbery Task Force and our partners in the Department of Correction, a crime of violence was averted. ATF stands with its law enforcement partners’ commitment to ridding the streets of individuals seeking to spread violence in their community. I would like to thank the United States Attorney’s Office for its leadership and guidance throughout this investigation.”
NYC Department of Correction Commissioner Cynthia Brann said: “This investigation and the resulting arrest, yet again sends a very clear message to those in DOC custody. You will be prosecuted if you commit crimes in custody, and if convicted you will face prison time. I am proud of our Correction Intelligence Bureau’s steadfast commitment to keeping our officers, those in our custody, and the people of New York City safe. And I want to thank our fellow law enforcement partners for working to help bring this individual to justice.”
According to the allegations in the Complaint filed today in Manhattan federal court:[1]
On October 1, 2018, TEJADA was arrested and charged in New York State court with the attempted murder of TEJADA’s half-brother (“Victim-1”). TEJADA was detained at the Rikers Island correctional facility.
While an inmate at Rikers, TEJADA hired an individual he believed to be a hitman to murder Victim-1. In fact, the person he hired to commit this murder was an undercover ATF agent. TEJADA had multiple recorded conversations with the undercover agent, both over the phone and in person, in which TEJADA discussed the intended murder, and TEJADA agreed to pay the undercover agent $5,000 to commit the murder.
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TEJADA, 19, of Brooklyn, New York, is charged with one count of murder-for-hire, which carries a maximum sentence of 10 years in prison, and one count of solicitation to commit a crime of violence, 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 the judge.
Mr. Berman praised the outstanding work of the ATF, NYPD, and the New York City Department of Correction’s Intelligence Bureau.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Frank J. Balsamello and Adam S. Hobson 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 constitutes only allegations, and every fact described herein should be treated as an allegation.
Red River Army Depot Contractor Sentenced for Assaulting Police OfficerRead the Press Release
TEXARKANA, Texas – A 32-year-old Red River Army Depot contractor has been sentenced to federal prison for assaulting a Red River Army Depot Police Officer in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Dontrell McChester, of Hooks, Texas, pleaded guilty on Nov. 5, 2018, to assault on a federal officer and was sentenced to 13 months in federal prison by U.S. District Judge Robert W. Schroeder, III, on Jan. 30m 2019. During sentencing, Judge Schroeder found that McChester had recklessly created a substantial risk of death or serious bodily injury to another person in the course of fleeing from a law enforcement officer. McChester was also ordered to pay restitution in the amount of $592.36.
According to information presented in court, on Sep. 11, 2018, McChester attempted to enter the Red River Army Depot in his vehicle when Red River Army Depot Police Officers at the main gate smelled the odor of marijuana coming from his vehicle. Officers directed McChester to exit the vehicle for further inspection. While officers were conducting that inspection, McChester ran from officers, re-entered the vehicle, and attempted to drive away. McChester began kicking an officer, who was struggling with him to stop the vehicle. While attempting to flee, McChester drove the vehicle in a manner that could have easily killed or seriously injured the officers at the scene. Officers were finally able to restrain McChester by using pepper spray. The assaulted officer received injuries and was also pepper sprayed during the altercation.
This case was investigated by the Red River Army Depot Police Department and was prosecuted by Assistant U.S. Attorneys Jonathan R. Hornok and Allen Hurst and Special Assistant U.S. Attorney Ivor Jorgensen.
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Providence Man Admits to Trafficking Guns and DrugsRead the Press Release
PROVIDENCE - A Providence man today admitted in federal court to participating in a conspiracy to sell fentanyl and firearms to a person assisting the FBI Rhode Island Safe Street Task Force in a Project Safe Neighborhoods investigation.
Appearing before U.S. District Court Chief Judge William E. Smith, Agustin Navedo, 30, admitted to the Court that on five occasions between April 3 and May 11, 2018, he sold an individual approximately 10 grams of fentanyl for between $650 and $750 dollars.
Additionally, Navedo admitted that on May 11, 2018, he sold the individual a .40 caliber pistol and a .380 caliber pistol for $1,350.
Navedo today pleaded guilty to conspiracy to possess with the intent to distribute and distribution of 40 grams or more of fentanyl, five counts of possession with the intent to distribute and distribution of fentanyl, conspiracy to engage in unlicensed dealing in firearms, and unlicensed dealing in firearms.
Navedo’s guilty plea is announced by United States Attorney Aaron L. Weisman and Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
Navedo, who is detained in federal custody, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on April 26, 2019.
Two co-defendants arrested and charged in this matter, Yerry Abreu-Jimenez, 26, and Emmanuel Miamen, 24, of Providence, are awaiting trial in federal court.
The case is being prosecuted by Assistant U.S. Attorneys Terrence P. Donnelly and Helen H. Lee.
Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The FBI Safe Street Task Force is comprised of members of law enforcement from the Central Falls Police Department, Cranston Police Department, Pawtucket Police Department, Providence Police Department, Woonsocket Police Department, and Adult Correctional Institutions.
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Postal Worker and Massachusetts Man Charged with Importing and Distributing Synthetic CannabinoidsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), Ruth M. Mendonça, Acting Inspector-in-Charge of the New York Field Division of the United States Postal Inspection Service (“USPIS”), and Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of United States Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today that DANIEL BORER and JOSEPHINE McLAUGHLIN, who is an employee of the United States Postal Service, have been charged with importing synthetic cannabinoids from China and then using them to manufacture and distribute massive wholesale quantities of smokeable synthetic cannabinoids (“SSC”) throughout the United States. Both defendants were arrested this morning, and will be presented this afternoon before United States Magistrate Judge David H. Hennessey in Boston, Massachusetts. The case has been assigned to United States District Judge Naomi Reice Buchwald. In addition, Mr. Berman announced today that JONATHAN RIENDEAU, who operated several websites on which he sold SSC, pled guilty and is cooperating with the Government.
U.S. Attorney Geoffrey S. Berman said: “Trafficking of synthetic cannabinoids – sometimes called K2 or Spice – poses a serious threat to public health and safety. Packaged attractively to appeal to teenagers and young adults, synthetic cannabinoids are in reality a toxic cocktail that can be very dangerous to consume. As alleged, Daniel Borer and Josephine McLaughlin imported massive quantities of synthetic cannabinoids and distributed them in smokeable form to retail dealers throughout the United States. Thanks to our law enforcement partners, Borer and McLaughlin have been arrested and their dangerous business has been dismantled.”
USPIS Acting Inspector in Charge Ruth M. Mendonça said: “Josephine McLaughlin’s alleged violation of the employee code of conduct and ethics rules is appalling. As an employee, she is entrusted to uphold the sanctity of the U.S. Mail and her alleged breach of trust has led to today’s arrest. United States Postal Inspectors are committed to protecting the U.S. Mail and will ensure that those who violate this sanctity are brought to justice.”
HSI Special Agent-in-Charge Angel M. Melendez said: “These two defendants are alleged to distribute large quantities of synthetic cannabinoids, a dangerous product that could affect the brain much more powerfully than marijuana. When it comes to a synthetic drug, it is rarely a harmless alternative. Borer and McLaughlin are now out of business, making the communities we serve that much safer.”
NYPD Police Commissioner James P. O’Neill said: “Anyone who seeks to profit by selling so-called designer drugs on America’s streets can expect the full weight of local, state, and federal law enforcement to bear down upon them. In recent years, thousands of New York City emergency room visits have been linked to the use of synthetic marijuana. And in just one three-day period last May, dozens of people in northern Brooklyn were hospitalized as a result of a what was described as an especially toxic batch. As for this specific investigation, I commend all of the NYPD’s partners, whose primary mission is to fight crime and keep people safe. Together, we are relentless in bringing justice to those responsible for this nationwide scourge.”
According to the allegations in the Superseding Indictment[1]:
From at least February 2014 until February 2019, BORER and McLAUGHLIN operated a scheme to import synthetic cannabinoids from China and then use them to manufacture and distribute massive wholesale quantities of SSC, containing controlled substances and controlled substance analogues, throughout the United States. SSC, which can be addictive, are often marketed as safe, legal alternatives to marijuana. In fact, SSC are not safe and may affect the brain much more powerfully than marijuana; their actual effects can be unpredictable and, in some cases, more dangerous or even life-threatening.
BORER and McLAUGHLIN shipped SSC, colloquially referred to as “K2” or “Spice,” through the U.S. Mail to locations throughout the Unitd States. Some of the SSC distributed by the scheme were branded with colorful graphics and distinctive names, including “Dead Man Walking,” “Klimax,” “Zero Gravity,” “Twilite,” “Psycho,” and “Get Real.” The branded SSC were sometimes marked “not for human consumption,” or “potpourri.” Other of the SSC were distributed in bulk quantities.
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On January 31, 2019, JONATHAN RIENDEAU, 38, of Port Saint Lucie, Florida, pled guilty before Judge Buchwald to six counts: three counts of conspiracy unlawfully to distribute controlled substances and controlled substance analogues; two counts of unlawful importation of controlled substances and controlled substance analogues; and one count of unlawfully distributing a controlled substance. Each count carries a maximum sentence of 20 years in prison.
BORER, 42, of Adams, Massachusetts, and McLAUGHLIN, 65, of Stoneham, Massachusetts, are each charged with three counts of conspiring unlawfully to import and distribute controlled substances and controlled substance analogues. Each count carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of NYPD, USPIS, and HSI, and thanked the United States Postal Service’s Office of the Inspector General, the Berkshire County (Massachusetts) Law Enforcement Taskforce, the Berkshire County (Massachusetts) District Attorney’s Office, and the Massachusetts State Police for their assistance. The long-term investigation of this case was partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (“HIDTA”), which is a federally funded crime fighting initiative and part of the Organized Crime Drug Enforcement Task Force program.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Robert B. Sobelman is in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.