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Wednesday 28 November 2018
Multiple Sentences Imposed in Massive Synthetic Narcotics Distribution NetworkRead the Press Release
HOUSTON - The five leaders and eight other co-conspirators have been sentenced for their roles in one of the largest synthetic cannabinoids distribution networks in the United States, announced U.S. Attorney Ryan Patrick. The sentences ranged from 140 months in federal prison for a leader to probation for an hourly wage clerk who sold the drugs.
The defendants were sentenced for their involvement in the manufacture, possession and distribution of synthetic cannabinoids commonly, but mistakenly, referred to as synthetic marijuana.
Today, U.S. District Judge Gray Miller ordered Khader Fahed Tanous, 52, of Manassas, Virginia, who distributed large amounts of synthetic cannabinoids to Houston area distributors, to 121 months imprisonment. Earlier this week, Judge Miller sentenced Muhammad Shariq Siddiqi, 48, of Sugar Land, to 140 months in prison. Siddiqi was a major manufacturer and distributor in the Houston area.
Also sentenced today was Ayisha Khurram, Siddiqi’s partner in manufacturing and distributing synthetic cannabinoids as was the de facto owner of the Smoke Zone Khalil Munier Khalil, 43, of Spring. The Smoke Zone was the most prolific distribution store front in the country for synthetic cannabinoids. Khalil was sentenced to a 135-month prison term while Khurram received a 95-month term of imprisonment.
Today, Judge Miller further sentenced Sayed Ali, 53, of Sugar Land; Abdalnour Izz, 33, of Houston; Steve Amira, 61, of Richmond; Mohammed Rafat Taha, 29, of Spring; and Frank Muratalla, 25, of Downey, California.
Siddiqi paid Ali to dilute, mix and apply the chemicals he supplied to the plant material. Izz delivered the drugs and collected payments for Tanous. Amira was the owner of Houston Beverage and a synthetic cannabinoids distributor. Ali received a sentence of 50 months, while Izz and Amira were each sentenced to 36 months.
Muratalla, who worked for out of state manufacturers of synthetic cannabinoids here in Houston, and Taha, a clerk at Smoke Zone, who sold packages of synthetic cannabinoids were both sentenced to four-year-terms of probation.
Also sentenced this week were other distributors and managers involved in the distribution of synthetic cannabinoids in the Houston area. Those included Salem Fahed Tannous, 58, of Houston (Khader Tanous’s brother who collected money for him from synthetic narcotics sales), Ali Tafesh, 37, of Houston, who owned and distributed the drugs from a store named Azell Cell Phones, Hazim Hisham Qadus, 34, a permanent resident alien who resided in Houston and distributed drugs from a store named Moon Mart and Azell Cell Phones and Nagy Ali, 61 of Spring, the manager of Smoke Zone. Tannous was ordered to serve 49 months in prison, while Tafesh, Qadus will both serve sentences of 97 months. Nagy Ali received a 120-month-prison term for his role.
Throughout the three days of hearings and the handing down of these sentences, the court’s repeated theme was its concern that the dangerous drugs these defendants were manufacturing were being marketed and distributed to juveniles.
Siddiqi and Qadus are not U.S. Citizens and are expected to face deportation proceedings following the completion of their prison terms.
Omar Maher Alnasser, a 37-year old resident of Sugar Land and former University of Houston professor, was previously sentenced to 12 months and one day in prison for aiding and abetting an unlicensed money transmitting business. He had admitted he was paid to wire more than $200,000 in U.S. currency from a bank in the United States to accounts in the country of Jordan.
The dismantling of this organizations and the convictions are the result of a multi-year, multi-agency federal investigation into one of the largest synthetic distribution networks in the nation and operated in the Houston area dubbed “We Can Hear You Now.”
All 13 defendants sentenced this week were convicted of conspiring to distribute a variety of synthetic cannabinoids, all Schedule I controlled substances. In committing the offense, several co-conspirators were accused in a scheme to defraud by marketing their products as though they were safe labeled the drugs as “potpourri” or “incense,” with some labels including false information such as “100% legal,” “lab certified” or “not for human consumption,” when in fact these products were dangerous drugs.
There are no standards for making synthetic cannabinoids which contain hazardous chemicals often imported from China that, when smoked or ingested, could have serious (sometimes deadly) side effects. Frequently, as in this case, various “brands” are mixed together in the same cement mixer, so two packets of a brand-named product may have the identical chemicals. Often, the same cement mixers are used for multiple batches of synthetic cannabinoids, so the “final” products may also be contaminated with other drugs or toxic chemicals from previous batches.
The amounts of synthetic cannabinoid in packages may also vary even within the same batches because the product is not mixed uniformly within the cement mixers. Therefore, “hot packages” with a higher concentration of the applied chemical are a common danger. According to the Center for Disease Control, synthetic cannabinoids may cause hallucinations, delusions, psychosis, suicidal thoughts and violent behavior. The health problems associated with the drug include heart attack, stroke, kidney failure, breathing problems and muscle damage.
The drugs the defendants admitted to having distributed were all Schedule I drugs – substances or chemicals with no currently accepted medical use, have a high potential for abuse, are the most dangerous drugs of all scheduled drugs and have potential for severe psychological or physical dependence. The packaging was also typical of synthetic cannabinoids - contained colorful illustrations that targeted not only drug abusers, but also children and adolescents.
In connection with this case, authorities are still seeking Ziad Mahmoud Alsalameh, 56, of Pearland, and Aqil Khader, 33, of Houston. They are considered fugitives and warrants remain outstanding for their arrests. Anyone with information about their whereabouts are asked to contact DEA at 713-693-3000.
The Drug Enforcement Administration, Houston Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives and IRS – Criminal Investigation conducted the four-year investigation with the assistance of the U.S. Postal Inspection Service, Conroe Police Department, sheriff’s offices in Harris and Polk counties, Texas Alcoholic Beverage Commission and the Montgomery County District Attorney’s Office. Assistant U.S. Attorneys John Jocher and Nancy Herrera prosecuted the case.
Mount Pleasant Speech Therapist Sentenced to over 9 Years in Federal Prison for Health Care Fraud and Aggravated Identity TheftRead the Press Release
Charleston, South Carolina---- United States Attorney Sherri A. Lydon announced today that Gena Randolph, 44, of Mount Pleasant, South Carolina, was sentenced to over 9 years in federal prison for executing a health care fraud scheme over the course of almost five years.
Randolph’s sentence comes after a four-day trial in July prosecuted jointly by the United States Attorney’s Office and the South Carolina Attorney General’s Office. A federal jury convicted Randolph of executing a health care fraud scheme totaling almost $2 million. Randolph was convicted of one count of Health Care Fraud, one count of Aggravated Identity Theft, and three counts of Making False Statements Relating to Health Care Matters.
According to evidence presented at trial, Randolph was excluded from Medicare and Medicaid after her 2012 conviction for Filing False Claims with the South Carolina Medicaid Program. As an excluded person, she was prohibited from working for any provider to perform services paid for, in whole or in part, by Medicare and Medicaid.
From 2012 to 2017, Randolph disguised her ownership and control over Palmetto Speech and Language Associates and Per Diem Healthcare Services, both of which were submitting claims to Medicare and Medicaid. As part of the health care fraud scheme, Randolph submitted claims both for speech therapy services that were provided by other speech therapists and for services that were never rendered at all. The jury was also presented with evidence showing that Randolph submitted claims for services to beneficiaries who were dead.
United States District Judge Richard M. Gergel presided over the trial and sentenced Randolph to 111 months in federal prison. There is no parole in the federal system, and her prison sentence will be followed by three years of court-ordered supervision. Randolph was also ordered to pay $580,937.44 in restitution.
“This case should serve as a warning sign to health care providers tempted try to take advantage of the size of our health care system, hoping that false and fraudulent claims will go unnoticed among the thousands of claims processed every day,” said U.S. Attorney Lydon. “When providers like Ms. Randolph break the rules, American taxpayers are forced to bear the cost. Her sentence will help recover that cost and discourage fraudulent billing by other providers in the future. We applaud the vigilant employees who spotted Ms. Randolph’s fraud and were brave enough to report it to law enforcement, as well as the hard work of our partners at the Attorney General’s Office and the Department of Health and Human Services.”
South Carolina Attorney General Alan Wilson stated, “This wasn’t just fraud, it was an attack on the people of the state because she took taxpayers’ money that was meant for health care after having already been convicted of a previous fraud. I’m thankful that the hard work by our Medicaid Provider Fraud Unit, the U.S. Attorney’s Office and the Department of Health and Human Services paid off in restitution and a long prison sentence.”
The case was investigated by Special Investigator Chris Radcliff of the Medicaid Fraud Control Unit of the South Carolina Attorney General’s Office and Special Agent Chris Lott with the United States Department of Health and Human Services – Office of Inspector General. The case was prosecuted by Nancy Cote, Senior Assistant Deputy Attorney General and Director of the Medicaid Fraud Control Unit, and Assistant United States Attorneys Matt Austin and Sean Kittrell of the Charleston office.
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More Than 100 Defendants Charged Federally in 2018 Surge to Reduce Violent Crime in LouisvilleRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman announced that more than 100 previous felony offenders possessing firearms have been charged so-far this year as one part of the ongoing Project Safe Neighborhoods effort to tackle violent crime in Metro Louisville.
The indictments returned were a result of the ongoing partnership between federal prosecutors and their counterparts from the Jefferson County Commonwealth’s Attorney’s Office who work hand-in-hand with the Louisville Metro Police Department, the Bureau of Alcohol, Tobacco, & Firearms (ATF), and the Drug Enforcement Agency (DEA). The combined effort is a key component of the Department of Justice’s PSN initiative - which targets the area’s most violent offenders.” This round of indictments brings the total number of defendants charged under the initiative in 2018 to 105. Overall, compared to fiscal year (FY) 2017, the total number of federal firearms cases filed in FY 2018 rose to 115, representing an increase of 60 percent.
“With over seventy homicides and two hundred fifty shootings in Louisville this year, we’re not there yet. This is, however, another deposit on our promise that federal, state, and local law enforcement will work as one to take violent offenders and their guns off the streets of our city,” stated U.S. Attorney Russell M. Coleman. “More to come.”
“ATF is committed to our on-going partnerships with local, state and federal law enforcement agencies to reduce gun violence,” stated ATF Special Agent in Charge Stuart Lowrey of the Louisville Field Division. “During the past year, ATF investigated illegal sources of crime guns and those who illegally possessed and/or used guns to commit violent crimes in the Louisville Metro area. We will continue to aggressively pursue ‘traffickers and trigger pullers’ with every resource and technique available. In this way, ATF’s support of the Department of Justice’s Project Safe Neighborhoods is making our communities safer for everyone.”
“Our community continues to be better protected by the cooperative efforts between the United States Attorney’s Office and the Jefferson County Office of Commonwealth’s Attorney,” stated Jefferson County Commonwealth’s Attorney Tom Wine. “Prosecutors between our offices determine which jurisdiction can impose the maximum penalty. They work together to target those individuals who have illegally used or sold firearms in Jefferson County, threatening the safety of our citizens.”
One defendant charged this year, Elijah Eubanks, 20, of Louisville, Kentucky, had already been charged with attempted murder by the Jefferson County Commonwealth Attorney’s office for shooting at a police officer who approached his vehicle; he faces an additional federal charge of being a felon in possession of a firearm.
Another defendant, Jamar Garrison, 33, of Louisville, Kentucky, was convicted July 27, 2018 in United States District Court on charges of possession of heroin with the intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and possession of a handgun by a convicted felon. Mr. Garrison had been released on bond for state drug trafficking charges for the last two years when he was arrested after being found in possession of a loaded semiautomatic handgun, a mixture of heroin and fentanyl packaged for sale, several thousand dollars cash, and assorted other narcotics. The follow up investigation revealed that while released on bond on multiple pending felony drug indictments in Jefferson Circuit Court, Garrison had been using vehicles rented in the names of third parties in order to transport and traffic in heroin all over Louisville.
The latest round of indictments charges Ashlyn Marcum, 28, of Louisville, Kentucky, who was previously convicted in with assault of the 4th degree domestic violence twice in 2014, and again in 2018, with being a felon in possession of 37 firearms.
Joshua Bolin, 41, of Louisville, Kentucky, who was previously convicted of sexual abuse in the first degree in 2003, was also charged in the latest indictments with two counts of being a felon in possession of 27 firearms.
Defendants charged this year have previously been found guilty of numerous crimes including: burglary, facilitation to murder, manslaughter, cultivating marijuana with intent, narcotics trafficking, manufacturing methamphetamine, assault 4th degree domestic violence, sexual abuse in the first degree, second degree escape, fleeing/evading police, wanton endangerment, among other charges.
If convicted at trial, the maximum sentence for unlawfully possessing a firearm is no more than ten years in prison, a $250,000 fine, and three years of supervised release. If that firearm is possessed or used in furtherance of a drug trafficking crime, a defendant faces a mandatory minimum five years in prison in addition to the sentence received for the underlying charges, and could receive up to life in prison. Some of the 105 defendants qualify as Armed Career Criminals, facing a mandatory 15 year sentence, or repeat drug traffickers, facing a mandatory 20 years sentence and, in some cases, a mandatory life sentence.
These cases are being prosecuted by Assistant United States Attorneys Joe Ansari, Mike Bennett, Ann Marie Blaylock, Robert Bonar, Nute Bonner, Bryan Calhoun, Terry Cushing, Tom Dyke, Larry Fentress, Marisa Ford, Alicia Gomez, Amanda Gregory, Lettricea Jefferson-Webb, Joshua Judd, Corrine Keel, Jo Lawless, Jessica Malloy, Erin McKenzie, Spencer McKiness, Randy Ream, Mac Shannon, Amy Sullivan, Christopher Tieke, David Weiser, Stephanie Zimdahl and Special Assistant United States Attorneys Ebert Haegele and Elizabeth Jones Brown with stalwart assistance from Laura Stinson, Western District of Kentucky Grand Jury Coordinator. The cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Louisville Metro Police Department, and the United States Drug Enforcement Administration (DEA) and with significant collaboration with the Jefferson Commonwealth’s Attorney’s Office.
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Today’s indictments are part of the Project Safe Neighborhoods Initiative in the Western District of Kentucky.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Minnesota Temporary Agency Owner Sentenced to Three Years in Prison for Failing to Pay TaxesRead the Press Release
United States Attorney Erica MacDonald today announced the sentencing of MAI NHIA VUE, 47, to 38 months in federal prison for failing to pay payroll taxes. VUE pleaded guilty on May 16, 2018, to one count of willful failure to pay payroll taxes and was sentenced on November 27, 2018, by Judge Wilhelmina Wright, in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, VUE owned and operated Five Star Workforce Solutions (Five Star), which provided temporary contract employees to businesses in Minnesota. As part of Five Star’s contracts with its client businesses, Five Star was responsible for collecting and paying the payroll taxes from the employees, which included the federal withholding taxes, social security, and Medicare withholdings.
According to the defendant’s guilty plea and documents filed in court, during the tax years of 2014, 2015, and 2016, VUE created two sets of accounting books and paid payroll taxes for some employees but did not pay any payroll taxes for other employees, despite charging Five Star clients consistent rates between the two sets of employees. Additionally, VUE did not pay the employer’s portion of social security and Medicare taxes.
According to documents filed in court, VUE failed to pay nearly $2 million under this scheme, which should have gone to the IRS. VUE spent hundreds of thousands of dollars on luxury travel, gambling, gold, and the construction and furnishing of a new home.
United States Attorney Erica H. MacDonald thanked the special agents of the IRS-Criminal Investigation Division who investigated the case and Assistant U.S. Attorney Robert Lewis, who prosecuted the case.
Defendant Information:
MAI NHIA VUE, 47
Lake Elmo, Minn.
Convicted:
- Willful Failure To Pay Payroll Taxes, 1 count
Sentenced:
- 38 months incarceration
- 3 years supervised release
- $1,820,331 in restitution to the IRS
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Miami Gardens Couple Each Sentenced to 188 Months in Prison for Illegally Distributing Hydromorphone and Oxycodone in North FloridaRead the Press Release
PENSACOLA, FLORIDA – Abbisina Hepburn, 39, and Damian Hepburn, 41, both of Miami Gardens, were each sentenced to 188 months in prison today, after pleading guilty on August 10. The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The Hepburns, along with co-conspirators Joseph Owusu, 63, of Tampa, and Angela Denise Clark, 48, of Sebring, pleaded guilty to conspiracy to distribute and possess with intent to distribute hydromorphone (Dilaudid) and oxycodone. Additionally, the Hepburns pleaded guilty to substantive counts of illegal distribution of hydromorphone.
On November 14, Owusu was sentenced to 135 months in prison. During the course of his guilty plea on August 17, Owusu acknowledged that he dispensed the drugs in violation of federal law. He agreed to voluntarily surrender his Drug Enforcement Administration (“DEA”) registration (license) to the DEA, and his pharmacist license and the Jares Pharmacy license to the State of Florida.
Clark pleaded guilty on October 22 and is scheduled to be sentenced on January 3, 2019, at 10:30 a.m. at the U.S. Courthouse in Pensacola.
Beginning in or about October 2015, Abbisina Hepburn and Damian Hepburn began presenting fraudulent prescriptions for hydromorphone and oxycodone to Owusu at Jares Pharmacy in Sebring, Florida. Later, in December 2016, Clark, a licensed pharmacy technician at Jares Pharmacy, became involved in the drug conspiracy.
The prescriptions presented were allegedly issued by a Hialeah doctor of osteopathy, to individuals other than Abbisina and Damian Hepburn. Owusu owned Jares Pharmacy, and was also the licensed pharmacist there. Owusu and Clark charged the Hepburns $9.00 per tablet. After receiving the hydromorphone and oxycodone pills, the Hepburns traveled to Destin and other locations in the Northern District of Florida to sell the pills to third parties for a profit.
U.S. Attorney Canova said: “Misused prescriptions are dangerous and contribute to the heroin and opioid epidemic our nation is currently experiencing. One of the ways we are fighting this health crisis is by prosecuting medical professionals who illegally divert controlled substances from the intended use. Corrupt pharmacists and their co-conspirators must be removed from positions which allow them to illegally distribute prescription pills.”
“In 2017, over 4,000 opioid-caused deaths were reported, which is a nine percent increase over the previous year. The climbing number underscores the gravity of this problem,” said Rick Swearingen, Commissioner of the Florida Department of Law Enforcement. “Local, state, and federal law enforcement agencies across Florida are already working to combat the increase in opioid drug use, and FDLE will continue to work with our partners focusing on multi-jurisdictional drug trafficking organizations.”
“The opioid epidemic that we are facing today is one of the worst crises in American history, and our pharmacists play a vital role in preventing the illegal diversion of prescription opioid medications,” said Adolphus P. Wright, Special Agent in Charge of the DEA Miami Field Division. “As demonstrated by this case, DEA remains committed to investigating unscrupulous licensed medical professionals, to include pharmacists and pharmacy owners who willingly turn a blind eye and contribute to this devastating public health emergency.”
The case was investigated by the Florida Department of Law Enforcement and the Walton County Sheriff’s Office with assistance of the DEA Diversion Division, and the DEA. Assistant U.S. Attorney Edwin F. Knight represented the government at the Owusu and Hepburn sentencing hearings.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Mexican National Man Pleads Guilty to Immigration CrimeRead the Press Release
Defendant had one prior deportation to Mexico
BECKLEY, W.Va. – A Mexican national man entered a guilty plea to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Heriberto Tadeo faces up to two years of incarceration when he is scheduled to be sentenced on March 13, 2019. Tadeo is also subject to deportation proceedings at the conclusion of any sentence. Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement (ICE).
“Our immigration laws must be enforced,” said United States Attorney Mike Stuart. “Those who want to remain in this great country, must enter it legally, and abide by our laws.”
On October 17, 2018, Tadeo was found in Ronceverte, Greenbrier County, West Virginia by members of ICE after receiving a tip that individuals were in the country illegally and working in the area. Pursuant to this investigation, ICE agents approached Tadeo and he surrendered to them. Agents immediately confirmed that Tadeo was not in the United States legally, and took him into federal custody.
Tadeo’s fingerprints matched a prior encounter where he was found near Hidalgo, Texas and deported from the United States to Mexico in 2016. Tadeo illegally reentered the United States prior to his capture in 2018. Tadeo had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Tadeo also admitted to ICE agents that he was a Mexican citizen.
Assistant United States Attorney Erik S. Goes is responsible for the prosecution. United States District Judge Irene Berger presided over the hearing.
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Meth Smuggler Handed Significant SentenceRead the Press Release
BROWNSVILLE, Texas – A 36-year-old Brownsville resident has been ordered to federal prison following his conviction of conspiracy and methamphetamine smuggling, announced U.S. Attorney Ryan K. Patrick. A federal jury sitting in Brownsville convicted Jesus Yzaguirre Jr. March 12, 2018, following a six-day trial and less than three hours of deliberation.
Today, U.S. District Judge Rolando Olvera handed Yzaguirre Jr. a 200-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, the court noted the evidence which the government had presented to the jury and Yzaguirre’s attempts to obstruct justice by trying to get others to conceal a van and not talk to investigating agents.
The jury heard that on Feb. 25, 2017, Yzaguirre drove into the United States through the Gateway Port of Entry in Brownsville. At primary inspection, Yzaguirre said he had gone into Mexico to “borrow the van” he was driving from his uncle. He was referred for secondary inspection, at which time he then said he had gone into Mexico to pick up the van which belonged to him. Agents searched the van and discovered 29.4 kilograms of methamphetamine hidden within the floorboard and frame compartments.
Yzaguirre then gave a statement saying he thought he was bringing the van in for another person to use for alien smuggling. The person, a female friend whom he “bumped into in Matamoros,” asked him to pick up the van at a parking lot, according to his statement. She was to pay him $50 for taking it into the U.S. and parking it at a certain location. Yzaguirre said he had previously done the same thing with a different van which he parked somewhere in Brownsville.
Further investigation revealed Yzaguirre had in fact crossed a commercial van on three other occasions, each time going through the Sarita checkpoint. Agents interviewed an acquaintance of Yzaguirre who said Yzaguirre had admitted to knowing there were drugs in the van when he was arrested and that he had been working for “La Guera” who was in charge of the drug loads.
Yzaguirre was convicted of conspiracy to possess with intent to distribute 29.4 kilograms of methamphetamine, possession with intent to distribute the methamphetamine, conspiracy to import methamphetamine and importation of methamphetamine with intent to distribute
Yzaguirre has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorneys Oscar Ponce and Angel Castro are prosecuting the case.
Member of U.S. Air Force Pleads Guilty to Abusive Sexual Contact with a ChildRead the Press Release
Greenbelt, Maryland – Mitchell Oren Smith, age 28, an Airman in the U.S. Air Force, pleaded guilty today to abusive sexual contact with a child, which occurred while he resided at Joint Base Andrews in Prince George’s County, Maryland.
The guilty plea 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; and Special Agent in Charge Adanto D'Amore, Air Force Office of Special Investigations, Joint Base Andrews.
According to his plea agreement, from at least July 22, 2017 and continuing for several months, Smith engaged in sexually explicit conduct with a child victim who was under 10 years of age. In the course of his abuse of the child, Smith also admitted that he photographed the abuse. Investigators recovered a digital photograph from Smith’s cellular phone documenting his abuse of the victim. All of these events occurred while Smith resided at Joint Base Andrews.
As part of his plea agreement, Smith will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Smith and the government have agreed that if the Court accepts the plea agreement Smith will be sentenced to between 240 and 448 months in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for February 15, 2019, at 2:00 p.m.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI and the Air Force Office of Special Investigations for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Joseph R. Baldwin and Jennifer R. Sykes, who are prosecuting the federal case.
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Member of the Violent “Murdaland Mafia Piru” Bloods Gang Sentenced to 30 Years in Federal Prison for Racketeering and Drug ConspiraciesRead the Press Release
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Dontray Johnson, a/k/a “Gambino,” “Bino,” and “Tray,” age 33, of Baltimore, Maryland, on November 27, 2018, to 30 years in federal prison, followed by five years of supervised release, for racketeering and drug conspiracies related to his participation in the gang activities of the Murdaland Mafia Piru (MMP), a subset of the Bloods gang. As part of his gang activities, Johnson admitted committing two murders, and to conspiring to distribute controlled substances.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Interim Commissioner Gary Tuggle of the Baltimore Police Department; Chief Terrence B. Sheridan of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.
“Federal authorities worked with the Baltimore City and Baltimore County Police Departments and State’s Attorney’s Offices to dismantle a criminal organization that dealt drugs and despair in Northwest Baltimore and Baltimore County,” said U.S. Attorney Robert K. Hur. “This sentence demonstrates that we are committed to removing from our communities the violent gang members that terrorize them.”
“Dontray Johnson supported The Murdaland Mafia Piru gang through murder, acts of violence, and by pushing drugs onto the streets of Baltimore,” said ATF Special Agent in Charge Cekada. “He and this gang willfully wreaked havoc on the community and have irreparably damaged the families of their victims. We are glad to see justice served today.
According to Johnson’s plea agreement and court documents, MMP, also known as the “Mob” or “Mobsters,” is a violent subset of the Bloods gang that operates in Maryland and elsewhere. MMP was modeled after the Italian Mafia, and was organized hierarchically, with “the Don” at the top and various “Bosses,” “Underbosses,” “Capos,” “Lieutenants,” and “Mobsters” underneath. For many years, MMP has controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County, including Forest Park, Windsor Mill, Gwynn Oak, Howard Park, Woodlawn, and Walbrook Junction. The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, and it frequently attracted drug customers driving from Western Maryland and neighboring states. MMP’s members enriched themselves through drug trafficking and other criminal activities, and using violence and threats of violence to intimidate or retaliate against witnesses, protect the gang’s territories, enforce debts, and eliminate rivals.
Johnson admits that he was a member of MMP and participated in the gang’s affairs through a pattern of racketeering activities, including murder, extortion, robbery, witness tampering and retaliation, money laundering, and drug distribution.
Specifically, Johnson admits that on November 22, 2012, he murdered MMP member Antoine Ellis, a/k/a Poopy, in the 200 block of North Forest Park Avenue, because he had shown disloyalty to MMP. Earlier that day, Johnson had posted a comment to his Facebook account saying “198 n risen,” a reference to that year’s murder tally in Baltimore City. On September 29, 2015, Johnson murdered MMP member Brian Johnson, a/k/a Nutty B, because he refused to pay gang dues that Johnson was collecting for an MMP member.
As detailed in his plea agreement, on November 1, 2013, Johnson was featured in two rap videos that were posted to a social media website. The first video, “Boy You Lying,” was posted to enhance the gang’s status, intimidate rivals, and discourage anyone from selling drugs in MMP territory without paying its members. The second video, “Str8 Mobbin,” was posted to assert the gang’s dominance over its drug territories. It features Johnson with other MMP members, as well as footage of various MMP drug locations. Johnson brandishes a firearm in the video.
On July 31, 2015, law enforcement executed a search warrant at Johnson’s residence in Owings Mills and recovered 28 grams of heroin, 70 rounds of .22-caliber ammunition, a bulletproof vest, $1,480 in cash, and an “owe sheet” with a tally of drug debts owed by MMP members and associates.
Finally, Johnson admits that he conspired with other MMP members to distribute at least one kilogram of heroin and 280 grams of crack cocaine, and that he knew that during the conspiracy between one and three kilograms of heroin and between 280 and 840 grams of crack cocaine would be distributed.
In addition to Johnson, eighteen of twenty-six defendants have pleaded guilty in the case. Trial is scheduled for the remaining members on March 18, 2019.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The U.S. Department of Justice reinvigorated PSN in 2017 as part of its 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.
United States Attorney Robert K. Hur praised the ATF, the Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Hur thanked Assistant United States Attorneys Christina Hoffman and Lauren E. Perry, who are prosecuting the case.
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Massachusetts Man Sentenced to 85 Months in Prison Following Jury’s Conviction for Drug-Related OffensesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on November 27, 2018, United States District Judge Christina Reiss sentenced John Jones, a.k.a. “Champ,” of Springfield, Massachusetts, following his conviction at trial of conspiracy to distribute heroin and 28 grams or more of cocaine base; distribution of heroin; and possession with intent to distribute 28 grams or more of cocaine base. Judge Reiss sentenced Jones to 85 months in prison, to be followed by four years of supervised release.
The evidence presented at trial revealed that from early 2015 through July 13, 2015, Jones conspired with Childlove Gelin, a.k.a. “Rome” and “Haiti,” and others, to distribute large quantities of heroin, cocaine base, and cocaine in southern Vermont. On July 7, 2015, an informant working with the Vermont Drug Task Force purchased heroin from Jones. On July 13, 2015, after selling cocaine base to another informant, Jones and Gelin led police on a prolonged, 130-mile-per hour car chase on Interstate 91. During the course of their flight, $6,700 of cocaine base was thrown from the fleeing vehicle. Jones and Gelin were ultimately apprehended in Massachusetts. The trial evidence also detailed Jones’ manufacture of cocaine base and his sexual exploitation of addicts.
Jones was subject to a mandatory minimum sentence of 60 months for his crimes. In imposing the 85-month sentence, Judge Reiss considered the defendant’s significant criminal history, which included convictions for shooting another individual in the chest at point-blank range, and three separate convictions for domestic assault and battery, one of which was an aggravated offense in which Jones struck and strangled the pregnant mother of his children. The sentence also was based on the defendant’s intimidation of a witness.
United States Attorney Christina E. Nolan commended the efforts of the Vermont State Police, the Massachusetts State Police, the Brattleboro Police Department, the Springfield, Massachusetts Police Department, and the United States Department of Homeland Security for their work on this investigation.
The case was tried by U.S. Attorney Nolan and Assistant U.S. Attorney Nate Burris. Jones was represented by Attorney Richard Bothfeld.
Maryland Man Sentenced to 42 Months in Prison on Federal Gun Possession ChargeRead the Press Release
WASHINGTON – Steven Gorham, 30, formerly of Temple Hills, Md., was sentenced today to a 42-month prison term after pleading guilty to a federal firearms charge stemming from his arrest in Southeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Gorham pled guilty in September 2018, in the U.S. District Court for the District of Columbia, to a charge of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. He was sentenced by the Honorable Randolph D. Moss. Following his prison term, Gorham will be placed on three years of supervised release. He also faces the possibility of additional time for violating terms of his release from prison in an earlier case.
According to the government’s evidence, on Dec. 4, 2017 at about 4:30 p.m., officers from the Metropolitan Police Department’s 7th District Crime Suppression Team approached Gorham and other individuals on the 2300 block of Ainger Place SE, in the Woodland Terrace neighborhood. The officers asked Gorham how he was doing, at which time he tried to flee. Officers pursued Gorham and stopped him a block away. They recovered from his waistband a .380-caliber firearm with five rounds of ammunition in the magazine and one round in the chamber. The firearm previously was reported stolen from Thomasville, N.C.
At the time of his arrest in this case, Gorham was barred from possessing a firearm due to a 2008 conviction in the Superior Court for the District of Columbia. That conviction was for assault with intent to kill while armed and a related firearms offense. In that case, on July 1, 2006, Gorham shot a man in the abdomen and then, when the victim turned to flee, shot him again in the back. The victim was paralyzed during this assault, which took place on the 2300 block of Ainger Place SE, the same location where Gorham was stopped with this firearm. Gorham was sentenced to a 12-year prison term for the 2006 attack and placed on supervised release on Oct. 13, 2017. He was arrested in this case less than two months later.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of MPD’s 7th District Crime Suppression Team. They recognized the work of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; ATF’s Crime Gun Intelligence Center referred the case for federal prosecution. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz and Teesha Tobias and Legal Assistants Katie Cowley and Emma Atlas. Finally, they commended the work of Assistant U.S. Attorney Sara Vanore, who prosecuted the case.
Man from El Salvador Charged with Illegally Re-entering the U.S. after Previous RemovalsRead the Press Release
PITTSBURGH, PA – An individual from El Salvador, present in the country illegally, has been indicted by a federal grand jury in Pittsburgh on a charge of illegally re-entering the United States after removal, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on Nov. 27, named Jose Roberto Ordonez-Ramos, 25, formerly of El Salvador, as sole defendant.
According to the Indictment, Ordonez-Ramos, an alien who was previously removed from the United States on May 3, 2018 and February 9, 2018, was again found in the United States in Allegheny County on October 26, 2018.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The U.S. Immigration and Customs Enforcement/Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Man Sentenced for Possessing Crack Cocaine in Police HeadquartersRead the Press Release
RICHMOND, Va. – A Henrico man was sentenced today to 21 months in prison and five years of supervised release for possessing 30 baggies of crack cocaine hidden in his underwear inside Richmond Police Department (RPD) headquarters.
According to court documents, on September 5, 2017, Zyejuan Redd, 21, was arrested by RPD officers on an outstanding warrant within the area of the Mosby Court public housing community. After being taken into custody, officers transported Redd to RPD headquarters where he was placed alone in an interview room equipped with video monitoring equipment. Several minutes later, RPD officers observed Redd on the video monitor reaching into and jostling the front of his pants in an attempt to retrieve an item. Based on Redd’s movements, RPD officers confronted Redd and discovered plastic bags containing 30 individually wrapped corner baggies of crack cocaine and a baggie containing a heroin.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Erik S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-72.
Lucas Anthony Nichols Sentenced to 262 Months for Child Pornography OffensesRead the Press Release
KNOXVILLE, Tenn. - On November 28, 2018, Lucas Anthony Nichols, 40, of Knoxville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 262 months in federal prison for receiving and possessing child pornography. Following his release from prison, Nichols will be supervised by the U.S. Probation Office for 10 years and be required to register with the sex offender registry in any state in which he resides, works, or attends school.
In April 2018, Nichols pleaded guilty to federal charges stemming from an undercover investigation into the storage of child pornography over the Internet. Search warrants were issued for Nichols’ online storage account and his residence. The seized evidence revealed that Nichols had saved thousands of images and videos of child pornography on his online storage account, including sadistic depictions of the sexual abuse of young children.
“The receipt and collection of child pornography is a serious crime that perpetuates the victimization of children and fuels the demand for the production of more child pornography,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee. “Our office commends the collaborative law enforcement efforts taken to bring this defendant to justice.” added U.S. Attorney Overbey.
This investigation was conducted by the Knoxville Police Department’s Internet Crimes Against Children Unit, U.S. Department of Homeland Security - Homeland Security Investigations, and U.S. Postal Inspection Service. Assistant U.S. Attorney Matthew Morris represented the United States in court proceedings.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.projectsafechildhood.gov.
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Lower Brule Man Sentenced on Drug and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person was sentenced on November 26, 2018, by U.S. District Judge Roberto A. Lange.
Thomas James Eagle Thunder, age 21, was sentenced to 5 months in federal prison on each count to run concurrently, followed by 2 years of supervised release, a fine of $1,000, forfeiture of $5,358.01 in U.S. currency and 5 firearms, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Eagle Thunder was indicted by a federal grand jury on June 12, 2018. He pled guilty on September 12, 2018.
The conviction stemmed from an incident that occurred on February 15, 2018, following a traffic stop for a missing headlight in low visibility and poor road conditions. Once the officer made contact with the driver, Eagle Thunder, the officer smelled a strong odor of marijuana. Following a search of the vehicle, two plastic baggies containing marijuana were found as well as two bundles of U.S. currency. A further search of Eagle Thunder’s residence revealed several firearms. Eagle Thunder knowingly and intentionally combined, conspired, confederated, and agreed with others to distribute and to possess with intent to distribute marijuana, which is a Schedule I controlled substance. Further, Eagle Thunder is an unlawful user of, and addicted to a controlled substance, making it illegal for him to possess firearms.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Bureau of Indian Affairs, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Meghan N. Dilges prosecuted the case.
Eagle Thunder was immediately turned over to the custody of the U.S. Marshals Service.
Leader of Macon-Based Sex Trafficking Operation Sentenced in Federal Court, Cohort Also SentencedRead the Press Release
MACON—The leader of a sex trafficking operation involving seven victims was sentenced to 174 months in prison, announced Charles E. Peeler, the United States Attorney for the Middle District of Georgia. Najiy Williams, a/k/a “King”, age 36 of Macon, Georgia, was sentenced in federal court today by the Honorable Marc T. Treadwell on the charge of Inducement to Travel to Engage in Criminal Sexual Activity. The sentence includes a $250,000 fine and a term of lifetime supervised release. In addition, Hamza Abdul Vasser, a/k/a “Joseph” a/k/a “Joey,” age 29 of Douglasville, Georgia, was sentenced to 21 months imprisonment and a term of lifetime supervised release on the charge of Transportation for Illegal Sexual Activity. Both defendants will be required to register as sex offenders upon release from prison.
The Federal Bureau of Investigation (FBI) first received information that Mr. Williams was trafficking women and with assistance from the Bibb County Sheriff’s Office and the Georgia Bureau of Investigation, identified seven adult women who said they were forced to have sex in hotel rooms in the Macon area, as well as cities across the southeast, including Charleston, South Carolina and Valdosta, Georgia, between September 2015 and February 2017. According to the plea agreement, one victim reported engaging in more than 550 sex acts. Several victims said they responded to advertisements for models and actors posted on various websites, including “Craigslist” and encountered Mr. Williams. One victim traveled by bus from as far away as Ohio to Macon, Georgia, in response to an online advertisement for a film audition. Mr. Vasser admitted to driving one female victim in August 2016 from South Carolina to Georgia for the purpose of engaging in prostitution.
“There is no place for human sex trafficking in our community. It is degrading to the victims and is otherwise a blight on society,” said Charles Peeler, the U.S. Attorney for the Middle District of Georgia. “I want to thank the great investigative work of the FBI, GBI and the Bibb County Sheriff’s Office to end this illegal sex trafficking operation, and helping release these victims from a hopeless trap.”
“These two defendants showed a complete disregard for the women they coerced into sex trafficking,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI thanks our state and local law enforcement partners for their assistance in taking these two predators off our streets and helping us rescue their victims.”
“We can all be thankful that the teamwork of all agencies involved resulted in these horrific criminals being taken off the street and put behind bars where they belong,” said Bibb County Sheriff David Davis.
Assistant United States Attorneys Julia C. Bowen and Shanelle C. Booker are prosecuting the case for the United States. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Lake Mary Man Sentenced for Stealing Supplemental Security Income BenefitsRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Goebels Cyriaque (52, Lake Mary) to 10 months in federal prison, followed by 3 years of supervised release, for theft of government property. As part of his sentence, the court also entered a money judgment in the amount of $98,796.20, the proceeds of the crime, and ordered Cyriaque to pay restitution.
Cyriaque had pleaded guilty on August 14, 2018.
According to court documents, Cyriaque’s cousin, J.E., was a Supplemental Security Income (SSI) beneficiary. J.E. passed away between March and April 1998 in Haiti. J.E.’s death was never reported to the Social Security Administration (SSA). Consequently, the SSA continued to make benefit payments to the deceased individual.
Cyriaque was a joint account holder on the account into which J.E.’s SSI benefits were deposited. From March 1998 through November 2017, Cyriaque accessed the funds and used them for personal expenses. In total, he stole or converted $98,796.20 in SSI benefits to which he was not entitled.
This case was investigated by the Social Security Administration Office of the Inspector General. It was prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Lake Andes Man Sentenced to 60 Months in Federal Prison for Felony Child Abuse, Neglect, and AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Lake Andes, South Dakota, man convicted of Felony Child Abuse and Neglect and of Simple Assault was sentenced on November 27, 2018, by U.S. District Judge Karen E. Schreier.
Wendell Clark Archambeau, Jr., age 38, was sentenced to 60 months in federal prison, followed by 3 years of supervised release. He was also ordered to pay $125 to the Federal Crime Victims Fund.
Archambeau was indicted on July 6, 2017. He pled guilty to one count of felony child abuse and neglect and one count of simple assault on August 20, 2018. Each count of conviction related to separate child-victims. The sentence imposed for the felony child abuse and neglect was for 60 months, and the sentence imposed for the simple assault was for 6 months, with those sentences to run concurrently.
The investigation was conducted by the Federal Bureau of Investigation and the Yankton Sioux Tribe’s Law Enforcement. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Archambeau was remanded to the custody of the U.S. Marshals Service.
Kilos of Marijuana and Firearms Nets D’Iberville Man over 6 Years in Federal PrisonRead the Press Release
Gulfport, Miss. – Dung Anh Nguyen, 35 of D’Iberville, was sentenced to a total of 75 months by U.S. District Judge Louis Guirola for possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Special Agent in Charge of Alcohol, Tobacco, Firearms and Explosives, Dana Nichols.
After receiving a tip that drugs were being sold out of a D’Iberville home, Harrison County Coastal Narcotics Enforcement Team, along with the Bureau of Alcohol, Tobacco, Firearms and Explosives, served a search warrant on Nguyen’s home in March 2018. Agents found approximately 2 kilos of marijuana along with several loaded firearms, large capacity magazines, ammunition and a ballistic vest. Nguyen was previously convicted of conspiracy to possess with intent to distribute controlled substances in Texas and Harrison County courts.
The Harrison County Sheriff’s Office Coastal Narcotics Enforcement Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case was prosecuted by Assistant United States Attorney Annette Williams.
Justice Department and U.S. Attorney Announce Funding Opportunities to Support Public Safety in Indian CountryRead the Press Release
The U.S. Department of Justice along with U.S. Attorney Trent Shores, Chairman of the Attorney General’s Advisory Subcommittee on Native American Issues, announced today the opening of the grant solicitation period for comprehensive funding to Indian Country to support crime prevention, victim services, and coordinated community responses to violence against native women.
The Department’s FY 2019 Coordinated Tribal Assistance Solicitation, or CTAS, posts today online at https://www.justice.gov/tribal/open-solicitations. The solicitation contains details about available grants and describes how federally-recognized tribes, tribal consortia and Alaska Native villages can apply for the funds.
“Native Americans are victims of violent crime at a rate more than double that of any other racial or ethnic group in the United States. That is unacceptable. I believe these grants will help those on the front lines who are working to reduce violent crime and help victims. Reducing violent crime requires a multilayered and multidisciplinary approach. An entire community must be involved in developing workable solutions, not only law enforcement officials. These grants could benefit Native American populations in northeastern Oklahoma by providing critical funding to enhance tribal justice systems, community policing, temporary housing for victims of domestic abuse, and counseling programs for children who are victims of violence,” said U.S. Attorney Trent Shores. “I hope that I can help facilitate the allocation of some of these funds into the hands of tribal communities in the most need, especially those in northeastern Oklahoma. In order to reduce violent crime rates in Indian Country, we must help ensure the resources are in place to do so.”
“Public safety professionals serving American Indian and Alaska Native communities frequently find themselves under-resourced and over-extended,” said Principal Deputy Associate Attorney General Jesse Panuccio. “This funding will give tribal officials the tools they need to fight violent crime, protect their citizens, serve victims, and deliver justice.”
The funding from the Department of Justice’s Bureau of Justice Assistance (BJA), Office for Juvenile Justice and Delinquency Prevention (OJJDP), Office for Victims of Crime (OVC), Office of Community Oriented Policing Services (COPS Office), and the Office on Violence Against Women (OVW) can be used for a variety of public safety and justice-related projects and services. Funds can be used to enhance law enforcement; bolster adult and juvenile justice systems; prevent and control juvenile delinquency; serve native victims of crimes such as child abuse, sexual assault, domestic violence, and elder abuse; improve responses to violence against native women; and support other efforts to combat crime.
New to FY 2019 CTAS is funding designated specifically to address violent crime in native communities (Purpose Area 10). Additionally, the Comprehensive Tribal Victim Assistance Program will be replaced by the Tribal Victim Services Program (Purpose Area 7) in FY 2019. This new program will provide funding to a higher number of applicants and provides funding for a broad range of activities, including a needs assessment, strategic planning, program development and implementation, program expansion, and other actions to address the victim service needs of tribes.
Applications for CTAS are submitted online through the Department’s Grants Management System, or “GMS.” Applicants must register with GMS prior to submitting an application. The application deadline is 9 p.m. EDT, Feb. 26, 2019. Applicants will submit a single application and select from any or all of the 10 competitive grant programs, referred to as “purpose areas.” This approach allows the Department’s grant-making components to consider the totality of a tribal nation’s overall public safety needs.
The 10 purpose areas are:
• COPS Office’s Public Safety and Community Policing
• Comprehensive Tribal Justice Systems Strategic Planning
• BJA’s Tribal Justice Systems
• BJA’s Tribal Justice System Infrastructure Program
• OVW’s Violence Against Women Tribal Governments Program
• OVC’s Children’s Justice Act Partnerships for Indian Communities
• OVC’s Tribal Victim Services Program
• OJJDP’s Juvenile Tribal Healing to Wellness Courts
• OJJDP’s Tribal Youth Program
• BJA’s Addressing Violent Crime in Native Communities
Fact sheets detailing each of the individual purpose areas can be found online at: https://www.justice.gov/tribal/grants. The Department will also facilitate a series of webinars to guide applicants through the CTAS application requirements. Details, including how to register for these webinars, will be made available online in coming weeks at https://www.justice.gov/tribal/open-solicitations.
Additionally, tribes and tribal consortia may also be eligible for non-tribal federal grant programs and are encouraged to explore other funding opportunities, which may be found at DOJ’s Tribal Justice and Safety website at https://www.justice.gov/tribal/open-solicitations or the www.grants.gov website.
In FY 2018, the Department funded 125 tribes with 225 awards across nine grant programs totaling more than $113 million.
CTAS is administered by the Department’s Office of Justice Programs, Office of Community Oriented Policing Services and Office on Violence Against Women.
Today’s announcement is part of the DOJ’s ongoing initiative to increase engagement, coordination and action on public safety in tribal communities.
Justice Department Announces Funding Opportunities to Support Public Safety in Indian CountryRead the Press Release
The U.S. Department of Justice today announced the opening of the grant solicitation period for comprehensive funding to Indian Country to support crime prevention, victim services, and coordinated community responses to violence against native women.
The Department’s FY 2019 Coordinated Tribal Assistance Solicitation, or CTAS, posts today online at www.justice.gov/tribal/open-solicitations. The solicitation contains details about available grants and describes how federally-recognized tribes, tribal consortia and Alaska Native villages can apply for the funds.
“Public safety professionals serving American Indian and Alaska Native communities frequently find themselves under-resourced and over-extended,” said Principal Deputy Associate Attorney General Jesse Panuccio. “This funding will give tribal officials the tools they need to fight violent crime, protect their citizens, serve victims, and deliver justice.”
The funding from the Department of Justice’s Bureau of Justice Assistance (BJA), Office for Juvenile Justice and Delinquency Prevention (OJJDP), Office for Victims of Crime (OVC), Office of Community Oriented Policing Services (COPS Office), and the Office on Violence Against Women (OVW) can be used to for a variety of public safety and justice-related projects and services. Funds can be used to enhance law enforcement; bolster adult and juvenile justice systems; prevent and control juvenile delinquency; serve native victims of crimes such as child abuse, sexual assault, domestic violence, and elder abuse; improve responses to violence against native women; and support other efforts to combat crime.
New to FY 2019 CTAS is funding designated specifically to address violent crime in native communities (Purpose Area 10). Additionally, the Comprehensive Tribal Victim Assistance Program will be replaced by the Tribal Victim Services Program (Purpose Area 7) in FY 2019. This new program will provide funding to a higher number of applicants and provides funding for a broad range of activities, including a needs assessment, strategic planning, program development and implementation, program expansion, and other actions to address the victim service needs of tribes.
Applications for CTAS are submitted online through the Department’s Grants Management System, or “GMS.” Applicants must register with GMS prior to submitting an application. The application deadline is 9 p.m. EDT, Feb. 26, 2019. Applicants will submit a single application and select from any or all of the 10 competitive grant programs, referred to as “purpose areas.” This approach allows the Department’s grant-making components to consider the totality of a tribal nation’s overall public safety needs.
The 10 purpose areas are:
- COPS Office’s Public Safety and Community Policing
- Comprehensive Tribal Justice Systems Strategic Planning
- BJA’s Tribal Justice Systems
- BJA’s Tribal Justice System Infrastructure Program
- OVW’s Violence Against Women Tribal Governments Program
- OVC’s Children’s Justice Act Partnerships for Indian Communities
- OVC’s Tribal Victim Services Program
- OJJDP’s Juvenile Tribal Healing to Wellness Courts
- OJJDP’s Tribal Youth Program
- BJA’s Addressing Violent Crime in Native Communities
Fact sheets detailing each of the individual purpose areas can be found online at: www.justice.gov/tribal/grants. The Department will also facilitate a series of webinars to guide applicants through the CTAS application requirements. Details, including how to register for these webinars, will be made available online in coming weeks at www.justice.gov/tribal/open-solicitations.
Additionally, tribes and tribal consortia may also be eligible for non-tribal federal grant programs and are encouraged to explore other funding opportunities, which may be found at DOJ’s Tribal Justice and Safety website at www.justice.gov/tribal/open-solicitations or the www.grants.gov website.
In FY 2018, the Department funded 125 tribes with 225 awards across nine grant programs totaling more than $113 million.
CTAS is administered by the Department’s Office of Justice Programs, Office of Community Oriented Policing Services and Office on Violence Against Women.
Today’s announcement is part of the DOJ’s ongoing initiative to increase engagement, coordination and action on public safety in tribal communities.
Judge Sentences Clairton Heroin Dealer to Nearly 8 Years in Federal PrisonRead the Press Release
PITTSBURGH, PA- A resident of Clairton, Pennsylvania, has been sentenced in federal court to seven years and 10 months in prison, followed by six years’ supervised release, on his conviction of conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Kevin Jackson, 35.
According to information presented to the court at the time he entered a guilty plea, Jackson purchased one or more grams of heroin on a daily basis from his codefendant, Skyler Carter, for further distribution in the Clairton area. Jackson and 20 other individuals were charged in the drug-trafficking conspiracy, and he was held personally responsible for the distribution of between 100 and 400 grams of heroin.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
Johnstown Felon Sentenced to 13 Years in Prison for Drug and Gun OffensesRead the Press Release
PITTSBURGH, Pa. – A former resident of Johnstown, Pennsylvania, has been sentenced in federal court to a term of imprisonment of 13 years, to be followed by six years of supervised release on his conviction on charges of possession of a firearm and ammunition by a felon, carrying a firearm during and in relation to a drug trafficking crime and possession with intent to distribute heroin and crack cocaine, United States Attorney Scott W. Brady announced today.
Senior United States Circuit Court Judge D. Michael Fisher imposed the sentence on Andrew Edwards, 32, formerly of Johnstown, PA.
According to information presented to the court, on April 11, 2016, Edwards was a passenger in a vehicle stopped for traffic violations in Middlesex Township, Butler County. The driver gave the officer permission to search the vehicle. In the backseat of the vehicle, where Edwards had been seated, officers observed a jacket and a backpack. From the jacket, officers recovered 528 bags of heroin, and a plastic baggie containing crack cocaine. From the backpack, officers recovered a Springfield XD 45 caliber semi-automatic handgun with six rounds in the magazine. Personal items including a towel, hairbrush and a toothbrush were also in the backpack. The FBI laboratory determined that there was support for the inclusion of Edwards as a contributor to the DNA found on the toothbrush.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and the Middlesex Township Police Department conducted the investigation leading to the Indictment in this case.
Jacksonville Beach Man Sentenced to Five Years for Illegally Possessing A FirearmRead the Press Release
Jacksonville, Florida – U.S. District Judge Harvey Schlesinger today sentenced Daniel Dwain Lundeby (42, Jacksonville Beach) to five years in federal prison for possessing a firearm as a convicted felon. Lundeby had pleaded guilty on March 15, 2018.
According to court documents, on August 9, 2017, Lundeby was a passenger in a truck that was stopped by the Jacksonville’s Sheriff’s Office for a traffic offense. After the driver gave consent to search the truck, officers located a backpack that contained a loaded handgun, a small amount of methamphetamine, and Lundeby’s wallet and identification. Lundeby was arrested at the scene. At the time, Lundeby had multiple prior felony convictions, including burglary, distribution of heroin, eluding police, and receiving stolen property and therefore was prohibited from possessing firearms or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sherriff’s Office. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Iowa Man Sentenced for Cyberstalking and Failure to Pay Child SupportRead the Press Release
United States Attorney Ron Parsons announced that a Council Bluffs, Iowa, man convicted of Cyberstalking and Failure to Pay Legal Child Support was sentenced on November 19, 2018, by U.S. District Judge Karen E. Schreier.
Daniel Lee Vincent, Jr., age 32, was sentenced to 71 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Vincent was indicted by a federal grand jury on November 7, 2017. He pled guilty on August 30, 2018.
In February 2017, Vincent posted advertisements on the internet website Craigslist for the Sioux Falls location, that included a previous intimate partner’s name, employment location, and cell phone number. The advertisements depicted nude photos of the female, claimed she wanted to have sex, and requested photos from interested men. The victim reported the matter to the Sioux Falls Police Department after strange men started sending naked pictures of themselves to her phone and started showing up at her place of employment.
Vincent previously had a child with the victim, but failed to pay court ordered child support, which exceeded $10,000. At the time of sentencing, the child support arrearages were over $19,000.
This case was investigated by the Sioux Falls Police Department, the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Vincent was immediately turned over to the custody of the U.S. Marshals Service.
Indictment: Drug Deals Took Place Within 1,000 Feet of Elementary SchoolRead the Press Release
KANSAS CITY, KAN. – A federal grand jury returned an indictment today alleging drug deals were taking place within 1,000 feet of Junction Elementary School, U.S. Attorney Stephen McAllister said.
Michael Pruitt, 48, who is in federal custody, was charged with two counts of distributing methamphetamine and one count of possession with intent to distribute methamphetamine within 1,000 feet of the school at 2570 S. 42nd Street in Kansas City, Kan.
According to court documents, three times in November 2018 investigators working undercover bought methamphetamine from Pruitt. The transactions took place at a business at 4200 Shawnee Drive. A search of that business turned up almost two pounds of methamphetamine.
If convicted, Pruitt faces a penalty of not less than five years on the first distribution count, and not less than 10 years on each of the other counts. The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Sheri Catania is prosecuting.
OTHER INDICTMENTS
A Kansas man is charged with selling a pound of methamphetamine to an undercover investigator in a restaurant parking lot in Kansas City, Kan.
Moises Martinez-Martinez, 31, Kansas City, Kan., is charged with one count of distributing methamphetamine. According to court documents, Martinez-Martinez agreed to sell a pound of methamphetamine to undercover investigators for $5,000. The deal took place in the parking lot of Tapatio restaurant.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million. The FBI investigated. Assistant U.S. Attorney Sheri Catania is prosecuting.
Mario Uriel-Quinones, 39, Leavenworth, Kan., is charged with escaping from custody at the Grossman residential reentry center in Leavenworth. The crime is alleged to have occurred Sept. 18, 2018.If convicted, he faces up to five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.
Robert Boyles, Jr., 55, Kansas City, Mo., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Dec. 28, 2017, in Johnson County, Kan.
If convicted, he faces a penalty of up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Charges New Haven Man with Firearm and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned a three-count indictment charging KEVIN McFARLANE, also known as “Jabari McBurn” and “Dexter Creque,” 41, of New Haven, with firearm possession and crack cocaine distribution offenses.
The indictment was returned on November 19, 2018. McFarlane appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the charges. He has been detained since his arrest on related state charges on July 11, 2018.
The indictment alleges that, on July 8, 2018, in New Haven, McFarlane possessed crack cocaine that he intended to distribute, and a Glock model 43 9mm semiautomatic handgun.
The indictment further alleges that McFarlane was convicted in Connecticut state court, in October 2004, of sale of a hallucinogen/narcotic, and in Florida state court, in October 2007, of murder in the second degree. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges McFarlane with one count of possession with intent to distribute 28 grams or more of cocaine base (“crack”), an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years; one count of possession of a firearm by a convicted felon, an offense that carries a maximum term of imprisonment of 10 years, and one count of possession of a firearm in furtherance of a drug trafficking crime, an offense that carries a mandatory consecutive term of imprisonment of at least five years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Hattiesburg Man Sentenced to over Ten Years in Prison for Drug TraffickingRead the Press Release
Hattiesburg, Miss. – Roderick Simpson, 44, of Hattiesburg, was sentenced yesterday by U.S. District Judge Keith Starrett to 121 months in federal prison, followed by five years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Assistant Special Agent in Charge Derryle Smith with the Drug Enforcement Administration (DEA). Simpson was also ordered to pay a $5,000 fine.
On October 10, 2016, DEA agents utilized a confidential source to purchase 55.4 grams of methamphetamine from Simpson for $900. Simpson pled guilty to possession with intent to distribute methamphetamine on June 6, 2018.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Shundral H. Cole.
Hattiesburg Man Sentenced to Almost 17 Years in Prison for Drug TraffickingRead the Press Release
Hattiesburg, Miss. – John Foster, 42, of Hattiesburg, was sentenced yesterday by U.S. District Judge Keith Starrett to 200 months in federal prison, followed by three years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Assistant Special Agent in Charge Derryle Smith with the Drug Enforcement Administration (DEA). Foster was also ordered to pay a $5,000 fine.
On September 19, 2016, DEA agents utilized a confidential source to purchase 27.8 grams of methamphetamine from Foster for $1,050. Foster pled guilty to possession with intent to distribute methamphetamine on June 6, 2018.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Shundral H. Cole.
Hardy County man admits to firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Joshua A. Parker, of Baker, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Parker, age 30, pled guilty to one count of “Unlawful Possession of a Firearm.” Parker, having been convicted of four previous felonies, admitted to possessing a 9mm pistol in Hardy County in April 2017.
Parker faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Attorney General’s Office has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Attorney General’s Office announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Hardy County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guilford Contractor Sentenced to Prison for Submitting False Claims to the U.S. Postal ServiceRead the Press Release
John H, Durham, United States Attorney for the District of Connecticut, and Steven Stuller, Acting Special Agent in Charge of the U.S. Postal Service Office of Inspector General, announced that MARCEL VAN WOLVELAERD, 63, of Guilford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to six months of imprisonment, followed by two years of supervised release, for submitting false documents to the U.S. Postal Service.
According to court documents and statements made in court, Van Wolvelaerd owns and operates CableComm, LLC. From approximately 2007 through 2014, the U.S. Postal Service (“USPS”) contracted with CableComm to perform repair and maintenance work at various USPS facilities. In 2017, Van Wolvelaerd sought payment on certain repair and maintenance work done in Connecticut. Prior to making payment, the USPS requested that Van Wolvelaerd show proof of his costs. In response, Van Wolvelaerd submitted to the USPS a certified claim that included several invoices detailing his costs, including three false invoices from an electric company. Two of the invoices falsely inflated CableComm’s costs, and the third was entirely fictitious.
The investigation also revealed that Van Wolvelaerd provided Robert Giulietti, a USPS facilities project manager, with $59,000 in cash in exchange for CableComm’s receiving USPS contracts.
On December 12, 2017, Van Wolvelaerd pleaded guilty to one count of submitting false claims to the U.S. Postal Service.
“The U.S. Postal Service manages approximately 30,000 contract actions and spends more than $13 billion on contracted supplies and services each fiscal year,” said Acting Special Agent in Charge Stuller. “The Office of Inspector General supports the Postal Service by aggressively investigating allegations of misconduct within the contracting process. In this instance, we worked hand-in-hand with the United States Attorney’s Office to help ensure a reasonable case-related resolution. We applaud the exceptional work by the investigative and prosecutorial team knowing it will have a positive impact on the entire contracting process.”
In February 2014, Giulietti pleaded guilty to bribery, fraud and tax offenses. On May 30, 2014, he was sentenced to 42 months of imprisonment and ordered to pay $882,064 in restitution and $291,026 in back taxes, interest and penalties.
Van Wolvelaerd, who is released on a $20,000 bond, was ordered to report to prison on January 3, 2019.
This matter was investigated by the U.S. Postal Service Office of Inspector General and was prosecuted by Assistant U.S. Attorney Lauren Clark.
Gentry Man Sentenced to 14 Years in Federal Prison for Distributing Child Pornography OnlineRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Cherokee Steward, age 24, of Gentry, Arkansas was sentenced today to 168 months in federal prison without the possibility of parole to be followed by twenty-five years of supervised release on two Counts of Distribution of Child Pornography. The Honorable Timothy L. Brooks, United States District Judge, presided over the sentencing hearing in Fayetteville.
According to court records, in March of 2018, federal law enforcement developed information that a Northwest Arkansas resident was distributing images of child pornography across the social media application Google Hangout. In response, a federal search warrant was obtained and executed on the residence. Upon gaining entry, law enforcement encountered Steward. During a post-Miranda interview, Steward admitted to obtaining images of child pornography online. Steward further admitted that he utilized the Google Hangout application to send images of child pornography to other users.
A federal grand jury indicted Steward in April 2018, and he pled guilty in July 2018.
This case was investigated by the Department of Homeland Security Investigations (HSI) and the Northwest Arkansas Internet Crimes Against Children Taskforce. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
Former Vice President of Insys Pharmaceuticals Pleads Guilty to Racketeering SchemeRead the Press Release
BOSTON – The former Vice President of Sales of Insys Therapeutics pleaded guilty today in federal court in Boston to his role in a nationwide conspiracy to bribe medical practitioners to unnecessarily prescribe a fentanyl-based pain medication and defraud healthcare insurers.
Alec Burlakoff, 44, of West Palm Beach, Fla., pleaded guilty before U.S. District Court Judge Allison D. Burroughs to one count of racketeering conspiracy. Burlakoff and his co-conspirators – all former managers and executives at Insys – were initially indicted in December 2016; an October 2017, superseding indictment also charged John Kapoor, the founder and former executive chairman of Insys. Today, Burlakoff pleaded guilty to the second superseding indictment.
Burlakoff, and, allegedly, other Insys employees, used various methods to bribe medical practitioners in various states, many of whom operated pain clinics, to induce them to prescribe Subsys. Subsys is a powerful, fentanyl-based pain medication intended to treat cancer patients suffering intense breakthrough pain.
One method employed by Burlakoff and his alleged co-conspirators was the Insys Speaker Program (ISP), which was used as a vehicle to bribe doctors and other clinicians to prescribe Subsys to their patients. Insys sales representatives targeted and promised medical professionals the opportunity to be paid Insys speakers if they wrote prescriptions for Subsys. The more prescriptions written for Subsys – and the higher the dose – the more speaking opportunities were awarded and more fee paid to the clinicians. However, the speaking opportunities were merely an excuse for the clinician and friends to have a meal and drinks paid for by Insys, and for the speaker to be paid. As a result, insurers were defrauded by paying reimbursements for Subsys, a more expensive drug than its nearest competitor, and often prescribed when medically unnecessary and inappropriate.
Other methods were also used to bribe and induce medical professionals to prescribe Subsys. For example, employees of the practitioner’s office were moved onto the Insys payroll. Additionally, relatives and girlfriends of the medical professionals who were high volume writers were also hired.
As a result of the conspiracy, many patients were inappropriately prescribed and overprescribed Subsys, which is highly addictive and dangerous.
The charge of RICO conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000, or twice the amount of pecuniary gain or loss. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services; Mark A. McCormack, Special Agent in Charge of the FDA Office of Criminal Investigations’ Metro Washington Field Office; Carol S. Hamilton, Acting Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service (DCIS), Northeast Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office; Sean Smith, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Thomas South, Deputy Assistant Inspector General for Investigations, Office of Inspector General of the U.S. Office of Personnel Management made the announcement today. Assistant U.S. Attorneys Nathaniel K. Yeager, Fred M. Wyshak, Jr., and David G. Lazarus, of Lelling’s Office, are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Richwood correctional officer pleads guilty to covering up physical assault of inmatesRead the Press Release
MONROE, La. – The Justice Department and U.S. Attorney David C. Joseph announced today that former Richwood Correctional Center officer Demario Shaffer pleaded guilty Monday in federal court for his role in a conspiracy to cover up the physical assault of five inmates by himself and other correctional officers in violation of the Constitutional prohibition against cruel and unusual punishment.
Shaffer, 33, of Delhi, Louisiana, pleaded guilty to conspiring to falsify documents with the intent to obstruct and influence a matter within federal jurisdiction. Assistant Attorney General Eric Dreiband for the Civil Rights Division and David C. Joseph, U.S. Attorney for the Western District of Louisiana, made the announcement.
“A correctional officer who uses excessive force against an inmate and then falsifies official reports violates the Constitution and its provision to protect all incarcerated offenders from cruel and unusual punishment,” said Assistant Attorney General Eric Dreiband. “The Justice Department will continue to aggressively prosecute such misconduct to ensure the integrity of our civil rights laws.”
“Correctional officers are not allowed to abuse prisoners,” said U.S. Attorney David C. Joseph. “They must follow the law and not use their position of authority to assault those under their supervision.”
According to his guilty plea, Shaffer worked as a Sergeant at the Richwood Correctional Center in Monroe, where on October 30, 2016, he and other officers inflicted cruel and unusual punishment upon five inmates by spraying a chemical agent in their face and eyes while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Shaffer admitted that he conspired with the other officers to hide their conduct by submitting a false story in their official reports concerning the incident.
The count of conviction carries a maximum penalty of five years in prison and a criminal fine of up to $250,000. Shaffer is scheduled to be sentenced on May 1, 2019 by U.S. District Judge Terry A. Doughty of the Western District of Louisiana, who accepted the plea.
This case is being prosecuted by Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office, Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, U.S. Department of Justice. The case was investigated by the Monroe Division of the FBI.
Former Reservist Sentenced for Stealing Weapons, Prison Escape & Attempted Bank RobberyRead the Press Release
BOSTON – A former Army Reservist was sentenced today in federal court in Worcester for stealing six machine guns and 10 handguns from a U.S. Army Reserve facility, escaping from federal prison, and attempting to rob two banks.
James W. Morales, 37, of Cambridge, was sentenced by U.S. District Court Judge Timothy S. Hillman to 138 months in prison and three years of supervised release. In November 2017, Morales pleaded guilty to one count of being a felon in possession of a firearm; one count of possession of a machine gun; one count of possession of stolen firearms; one count of theft of government property; one count of conspiracy to possess, store, conceal, and sell stolen weapons; one count of escape; and two counts of attempted bank robbery.
On Nov. 14, 2015, Morales broke into a weapons vault at the Lincoln Stoddard United States Army Reserve Center in Worcester and stole six M-4 Carbines and 10 M-11 handguns. Morales was familiar with the layout of the facility, having been stationed there prior to his discharge from the Army Reserve.
Morales gained access to the weapons by breaking a kitchen window located near the room that contained the vault, climbing to the top of the vault, and cutting a hole through its ceiling. The sharp edges of the ceiling caused Morales to cut himself, leaving behind DNA, which was matched to Morales three days after the robbery.
Upon identifying Morales through the DNA database, law enforcement learned that Morales was on bail for child rape charges pending in Middlesex Superior Court. One of the conditions of his release required him to wear an electronic monitoring bracelet, which he wore during the robbery. In addition, surveillance video depicting a dark colored BMW X1 parked at a building adjacent to the U.S. Army facility was recovered. In the video, a man can be seen going to and from the car with duffle bags. Soon after Morales was identified, law enforcement learned that Morales was renting a BMW X1 at the time of the robbery.
After the robbery, Morales rented another vehicle, and GPS data from the vehicle showed that Morales had travelled to New York City, where he was located and arrested on Nov. 18, 2015, in Long Island. Inside his vehicle, four M-4 Carbines and two M-11 handguns were recovered with serial numbers matching those stolen from the Armory.
In a statement admitting his role in the robbery of the Army Reserve facility, Morales explained that he sold five of the handguns to two individuals in Dorchester with the help of Tyrone James and Ashley Bigsbee, who facilitated the transaction. Morales claimed to have given James and Bigsbee several hundred dollars, one of the M-4 Carbines and one of the M-11 handguns as payment for assisting with the sales. In April 2017, James was sentenced to 57 months in prison. In March 2017, Bisgbee was sentenced to 21 months in prison.
Following his arrest, Morales was detained at the Donald W. Wyatt Detention Facility in Central Falls, R.I. On Dec. 31, 2016, Morales escaped from the prison by climbing a basketball hoop, jumping onto a roof, and going through a barbed wire fence.
On Jan. 5, 2017, Morales was captured on surveillance video entering a branch of Bank of America in Cambridge and attempting to rob the bank by passing the teller a note that read, “I WANT ALL OF THE LARGE DENOMINATIONS W/BAND’S FROM THE 2ND (BOTTOM) TILL NOW BE CALM – BE COOL – NO DYE PACKS.” The teller was able to flee to the back of the bank behind a locked door, and Morales exited the bank without any money.
Later that same day, Morales, again captured on surveillance video, entered a branch of Citizen’s Bank in Somerville and attempted to rob the bank by passing the teller a note that read, “I WANT THE MONEY IN THE TILL NOW!! 100’s 50’s 20’s Be Calm, Be Cool, be Quick.” The teller stated, “I can’t,” and Morales wished the teller a nice day and exited the bank.
After a foot pursuit in Somerville, Morales was apprehended by law enforcement; he admitted to attempting to rob both banks.
United States Attorney Andrew E. Lelling; United States Attorney Stephen G. Dambruch for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; United States Marshal John Gibbons for the District of Massachusetts; United States Marshal Jaime A. Hainsworth for the District of Rhode Island; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Cambridge Police Commissioner Branville G. Bard; and Somerville Police Chief David Fallon made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Criminal Division prosecuted the case.
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Former Physician Pleads Guilty to Operating an Oxy Pill MillRead the Press Release
ALEXANDRIA, Va. – A former physician pleaded guilty today to operating a pill mill that illegally distributed over 600,000 oxycodone pills out of a pain management clinic in Woodbridge.
According to court documents, Shriharsh Laxman Pole, 65, was a physician who voluntarily surrendered his medical license in 2009, and again in 2013. In both instances, Pole admitted to creating a substantial risk to public health by engaging in wrongful prescribing practices for opiates, including oxycodone, oxymorphone, hydrocodone, and hydromorphone.
Upon surrendering his license in 2013, Pole founded Excel Medical Clinic (EMC). EMC operated out of the same office, had the same employees, and the same patients, as Pole’s former practice. Most of EMC’s patients were treated for pain management issues. Pole enlisted the aid of nurse-practitioner and co-conspirator, Janelle Hibson, 63, of Fredericksburg, who pleaded guilty to the same charges on September 6. Hibson pre-signed prescriptions that Pole later filled out and distributed. Patients often received these drugs without undergoing any physical or diagnostic examination to determine whether the drugs were necessary for legitimate medical purposes. Pole admitted that between EMC’s founding and 2015, he caused the distribution of more than 600,000 pills containing oxycodone.
Pole pleaded guilty to conspiracy to distribute Schedule II and III controlled substances, including oxycodone, oxymorphone, morphine sulfate, and hydrocodone, outside the scope of professional practice and not for a legitimate medical purpose. He faces a maximum penalty of 20 years in prison when sentenced on March 15, 2019. 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 Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorneys Michael P. Ben’Ary and David Peters 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-397.
Former New Jersey Lawyer Admits Role in Money Laundering SchemeRead the Press Release
CAMDEN, N.J. – A former New Jersey lawyer today admitted his role in a money laundering scheme, U.S. Attorney Craig Carpenito announced.
Michael W. Kwasnik, 49, of North Miami Beach, Florida, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to Count 12 of a superseding indictment, charging him with money laundering.
According to documents filed in this case and statements made in court:
Kwasnik was previously associated with a law firm, Kwasnik, Rodio, Kanowitz and Buckley P.C. – and its successor firm, Kwasnik, Kanowitz and Associates P.C. – with offices in Cherry Hill, New Jersey, and Philadelphia. His father, and co-defendant, William M. Kwasnik, of Marlton, New Jersey, owned and operated an insurance company, Abby Grant, with offices in Cherry Hill and Lakewood, New Jersey.
In April 2011, Michael Kwasnik induced a client to establish an irrevocable family trust to settle his mother’s estate, with promises that any money deposited in the trust would not be invested, but rather held for the client’s benefit. With the client’s consent, Michael Kwasnik established the trust and named himself as the trustee. Based on Michael Kwasnik’s promises, the client gave Michael Kwasnik $125,774, which the client received after his mother’s death, to deposit in the trust account. Michael Kwasnik deposited the money into the trust account and the next day, transferred $125,000 to Abby Grant’s bank account, and then to the Kwasnik, Rodio, Kanowitz and Buckley P.C. bank account, without the client’s knowledge or permission. Michael Kwasnik admitted that he did so to conceal and disguise the source of the money and that it was the proceeds of a mail fraud or wire fraud scheme.
The money laundering offense to which Michael Kwasnik pleaded guilty carries a maximum penalty of 20 years in prison and a $500,000 fine, or twice the gross gain or loss from the offense. Under terms of the plea agreement, he must also forfeit $125,000 and pay restitution.
The charges against William Kwasnik remain pending, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Michael T. Harpster, Philadelphia Division, and special agents of IRS Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, Newark Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Deborah Prisinzano Mikkelsen and Jason Richardson of the U.S. Attorney’s Office in Camden.
Defense counsel:
Michael Kwasnik: Richard Klineburger Esq., Haddonfield, New Jersey
William Kwasnik: Daniella Gordon Esq., Moorestown, New JerseyFormer Insider Convicted of Defrauding Baton Rouge CompanyRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced KATHERINE T. CANCIENNE, age 41, of Baton Rouge, Louisiana, to 28 months in federal prison following her conviction for wire fraud. CANCIENNE was also ordered to pay $387,025.75 in restitution to Engineers & Constructors International, Inc. (“ECI”).
CANCIENNE, who formerly handled accounting matters at ECI, admitted in connection with her guilty plea, to executing a fraud scheme by, among other things, establishing a shell corporation and bank account under the name Cappo, LLC, which had a similar name to an actual ECI vendor. The defendant admitted further to causing ECI to issue checks and make electronic wire payments to her shell corporation by creating and submitting false and fraudulent documents to ECI. As a result of this scheme, the defendant obtained nearly $400,000.
U.S. Attorney Fremin stated, “My office will continue to aggressively pursue those who use their positions of trust and skill to steal from their employers. Such betrayal often risks the financial livelihoods of their co-workers and may threaten the financial integrity of their employers. I am proud of our prosecutors and the special agents from the United States Secret Service who worked on this very important matter.”
Tara McLeese, Resident Agent in Charge of the Secret Service Office in Baton Rouge stated, “Since 1865, the United States Secret Service (USSS) has been tasked with protection of the nation's financial service infrastructure. Through aggressive investigation and collaboration with our partners in the United States Attorney’s Office, Agents in the Baton Rouge Resident Office were able to bring this case to a successful ending. The Secret Service remains committed to addressing the financial crimes that victimize our country’s citizens and financial institutions.”
This matter is being investigated by the Baton Rouge Office of the U.S. Secret Service, and is being prosecuted by Assistant United States Attorney Pete Smyczek.
Former Department Administrator Pleads Guilty to Defrauding MARTA Out of More Than $520,000Read the Press Release
ATLANTA – Jhonnita L. Williams, a former department administrator at the Metropolitan Atlanta Rapid Transit Authority (MARTA), pleaded guilty to participating in a false-invoice scheme that resulted in MARTA paying more than $520,000 for maintenance projects where no worked was actually performed.
“MARTA trusted Williams to use and protect taxpayer dollars effectively and responsibly,” said U.S. Attorney Byung J. “BJay” Pak. “Her participation in a half of million dollar theft of MARTA funds demonstrates that she sold the public’s trust for self-enrichment.”
“Williams circumvented proper government procedures and dipped into taxpayers’ money to subsidize her own personal greed,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Public corruption is one of the FBI’s top priorities, and we are committed to holding accountable those who choose to abuse their positions of trust.”
“MARTA has zero-tolerance for any employee who betrays the trust placed in us by our customers,” said MARTA Police Chief Wanda Y. Dunham. “The guilty plea by Ms. Williams concludes a coordinated investigation with our federal law enforcement partners, and we are satisfied with the results. We hope this guilty verdict serves as a deterrent for others who would attempt to defraud the taxpayers.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: MARTA is the principal public transportation operator in the Atlanta area, providing fixed rail and bus service to more than 500,000 passengers per weekday. Formed by Metropolitan Atlanta Rapid Transit Authority Act of 1965, MARTA is a multi-county local governmental agency with a 2016 annual budget of more than $880 million.
Williams worked for MARTA from 1999 to 2017. From 2010 to 2017, Williams worked as an assistant and department administrator for Joseph J. Erves. During most of the conspiracy, Erves served as MARTA’s senior director of operations and oversaw the maintenance of all of its buses and rail cars.
From approximately June 2010 to December 2016, Williams and Erves had more than 40 fake invoices prepared on behalf of three vendors for MARTA maintenance projects for which no work was performed. Williams and Erves used the false invoices as bases to authorize payments to the three vendors – including fake invoices submitted by a business owned by Ferrell Williams (who was romantically involved with Jhonnita Williams). After being paid, the all three of the vendors funneled most of the money received from MARTA back to Erves and Williams. In total, MARTA paid the three vendors more than $520,000 for maintenance projects where no worked was actually performed.
Williams used the money to pay for various personal expenses, including the financing and purchase of an approximately 3,000 square foot single-family home with four bedrooms and two and a half bathrooms.
On July 24, 2018, a grand jury returned a seven-count indictment against Williams, 47, of Atlanta, Georgia. Today, Williams pleaded guilty to one count of conspiratorial federal program theft.
On September 20, 2017, Joseph J. Erves, 54, of Lithonia, Georgia pleaded guilty to federal program theft. On January 16, 2018, Erves was sentenced to two years and nine months in federal prison, and was ordered to pay $522,825.45 in restitution.
On March 29, 2018, Ferrell Williams, 63, of Cincinnati, Ohio, pleaded guilty to conspiring to commit federal program theft. On August 1, 2018, Ferrell Williams was sentenced to eight months in federal prison, and was ordered to pay $41,539.1 in restitution.
This case is being investigated by the Federal Bureau of Investigation and the MARTA Police Department.
Assistant U.S. Attorneys Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Alison Prout are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Correctional Officer Pleads Guilty to Conspiracy to Cover up Physical Assault of InmatesRead the Press Release
The Justice Department today announced that former Richwood Correctional Center officer Demario Shaffer pleaded guilty on Monday in federal court for his role in a conspiracy to cover up the physical assault of five inmates by himself and other correctional officers in violation of the Constitutional prohibition against cruel and unusual punishment. Shaffer, 33, of Delhi, Louisiana, pleaded guilty to conspiring to falsify documents with the intent to obstruct and influence a matter within federal jurisdiction. Assistant Attorney General Eric Dreiband for the Civil Rights Division and U.S. Attorney for the Western District of Louisiana David C. Joseph made the announcement.
“A correctional officer who uses excessive force against an inmate and then falsifies official reports violates the Constitution and its provision to protect all incarcerated offenders from cruel and unusual punishment,” said Assistant Attorney General Eric Dreiband. "The Justice Department will continue to prosecute aggressively any similarly disgraceful and unlawful misconduct to ensure the integrity of our civil rights laws."
“Correctional officers are not allowed to abuse prisoners,” said United States Attorney David C. Joseph. “They must follow the law and not use their position of authority to assault those under their supervision.”
According to his guilty plea, Shaffer worked as a Sergeant at the Richwood Correctional Center in Monroe, Louisiana, where on Oct. 30, 2016, he and other officers inflicted cruel and unusual punishment upon five inmates by spraying a chemical agent in their face and eyes while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Shaffer admitted that he conspired with the other officers to hide their conduct by submitting a false story in their official reports concerning the incident.
The count of conviction carries a maximum penalty of five years in prison and a criminal fine of up to $250,000. Shaffer is scheduled to be sentenced on May 1, 2019, by U.S. District Judge Terry A. Doughty of the Western District of Louisiana, who accepted the plea.
This case is being prosecuted by Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office of the Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, U.S. Department of Justice. The case was investigated by the Monroe Division of the FBI.
Former Charter Airline Executive Sentenced to Nearly Eight Years in Prison for Orchestrating Multimillion Dollar Scheme to Steal Passenger Money from EscrowRead the Press Release
The former vice president of a now-bankrupt public air charter operator was sentenced to 94 months in prison today for her role in a scheme to steal millions of dollars in passenger money for future travel from an escrow account, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Regional Special Agent in Charge Douglas Shoemaker of the U.S. Department of Transportation Office of the Inspector General’s (DOT-OIG).
Kay Ellison, 58, of Edenton, North Carolina, was sentenced by U.S. District Judge Susan D. Wigenton of the District of New Jersey, who presided over the trial. Judge Wigenton also ordered the defendant to pay $19.6 million in restitution. Ellison and her co-defendant, Judy Tull, 73, also of Edenton, were both convicted on March 28, after a seven-day trial, of one count of conspiracy to commit wire fraud affecting financial institutions and to commit bank fraud, four counts of wire fraud affecting financial institutions and three counts of bank fraud. Ellison is the former vice president and managing partner of Myrtle Beach Direct Air and Tours (Direct Air), which was headquartered in Myrtle Beach, South Carolina, with operations in Daniels, West Virginia, and Tull is its former CEO. Tull is scheduled to be sentenced at a later date.
“Kay Ellison stole tens of millions of dollars of passenger money in a brazen scheme that put a veneer of success on a failing company, and left others holding the bag—until today,” said Assistant Attorney General Benczkowski. “Her sentence sends a powerful deterrent message—especially to corporate executives—and demonstrates the commitment of the Criminal Division and its law enforcement partners to uncovering and vigorously prosecuting corporate fraud wherever it is found.”
“The sentencing in this investigation demonstrates that the Department of Transportation Office of Inspector General is committed to stopping charter flight operators who intentionally mislead and defraud the traveling public for personal gain,” said DOT-OIG Regional Special Agent in Charge Shoemaker. “Together with the Department of Justice, we will continue to vigorously pursue and prosecute fraud that erodes consumer confidence in the integrity of transportation-related goods and services.”
According to evidence presented at trial, from October 2007 through March 2012, Ellison and Tull engaged in a scheme to steal passengers’ money for future travel from an escrow account by artificially inflating the amount of money that the defendants claimed they were entitled to receive, and by sending this falsified amount in a letter to the escrow bank telling the escrow bank to release the money. The evidence further established that to cover up their fraud, the defendants falsified profit and loss statements to make the company look like it was making money rather than losing money, and sent these falsified documents to credit card companies and banks to trick them into continuing to do business with the company.
Testimony at trial established that two financial institutions incurred losses of nearly $30 million for having to refund thousands of passengers their money that should have been held for them in escrow, but was actually stolen by the defendants as part of their fraud.
Robert Keilman, 73, of Marlboro, New Jersey, Direct Air’s former chief financial officer, pleaded guilty to charges stemming from his role in this scheme and will be sentenced separately.
This case was investigated by DOT-OIG. Trial Attorneys Cory E. Jacobs and Michael T. O’Neill of the Criminal Division’s Fraud Section are prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against complex white collar crime around the country.
Former Business Owner from Marion Sentenced to over Two Years in Prison for Bank FraudRead the Press Release
A man who previously operated a freight business and created fake documents for his bank was sentenced today to more than two years in prison.
David Giannetto, age 63, from Marion, Iowa, received the prison term after a May 23, 2018, guilty plea to one count of bank fraud.
In a plea agreement, Giannetto admitted that he produced numerous fraudulent invoices that he provided to his bank in order to continue to receive financing to operate his business. Giannetto created fake invoices purporting to show he had performed work for various customers and then sold those invoices to his bank to secure his financing. Information at sentencing showed that Giannetto submitted more than 600 fraudulent invoices in a two-year period. As a result, the bank loaned him more than $850,000 that he was unable to repay before closing his business and declaring bankruptcy.
Giannetto was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Giannetto was sentenced to 27 months’ imprisonment. He was ordered to make $872,065 in restitution his bank. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Giannetto was released on the bond previously set and is to surrender to the United States Marshal on December 31, 2018.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Bureau of Investigation. Court file information at https://ecf.iand.uscourts.gov/. The case file number is 18-cr-20.
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Former Allentown Assistant City Solicitor Sentenced in Former Mayor Edwin Pawlowski’s Pay-to-Play SchemeRead the Press Release
PHILADELPHIA – Deputy United States Attorney Louis D. Lappen announced that Dale Wiles, former Allentown Assistant City Solicitor, was sentenced today for his role in a pay-to-play bidding scheme involving former Allentown Mayor Edwin Pawlowski. United States District Judge Juan Sanchez sentenced Wiles to one day in jail to be served on Friday, December 7, 2018. He was also sentenced to serve three years of supervised release, of which the first three months will be served on home confinement with electronic monitoring; perform 100 hours of community service; and pay a $3,000 fine and a $100 special assessment.
Wiles was charged by information in November 2015 with conspiracy to commit mail and wire fraud for his involvement with Pawlowski. Wiles played a role in steering the city’s delinquent real estate tax collection contract to Pawlowski’s preferred vendor, Northeast Revenue, in contravention of the standard process employed by the city to award contracts. In return for the contract, Northeast made political contributions to Pawlowski’s failed campaigns for Pennsylvania Governor and United States Senate. Wiles’s conduct included falsifying evaluation committee score sheets to make it appear as though the committee had originally selected Northeast when it had not, withholding certain city records subject to a grand jury subpoena, and lying to the FBI.
In addition to Pawlowski, who was convicted at trial and sentenced to 15 years’ imprisonment, Wiles’s co-conspirators included the following individuals: Michael Fleck, a campaign consultant; Francis Dougherty, the Allentown Managing Director; and Garret Strathearn, Allentown Finance Director. These defendants all have pleaded guilty and similarly admitted to steering contracts to Pawlowski’s preferred vendors.
“In playing along with Pawlowski’s crooked business practices, Wiles ensured everyone got what they wanted: Northeast Revenue received its coveted tax collection contract and Pawlowski received campaign contributions. But Wiles was an attorney—he should have known better than to engage in the corrupt pay-to-play politics that permeated Allentown City Hall,” said Deputy U.S. Attorney Lappen. “The citizens of Allentown deserve better from their public servants and our Office remains committed to holding corrupt politicians and their cronies accountable.”
“Ed Pawlowski couldn’t pull off his pay-to-play scheme by himself,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Dale Wiles admitted to violating the city’s established contracting process in order to benefit his boss. When government officials break the law, it really damages the public trust. As such, public corruption remains the FBI’s highest criminal investigative priority.”
“Today's sentence reinforces our unwavering commitment to identify and prosecute those who participate in similar schemes,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “We will continue our collaborative effort to promote honest and ethical government at all levels.”
This case was investigated by the FBI and IRS Criminal Investigations. The case was prosecuted by Assistant United States Attorneys Anthony J. Wzorek and Michelle L. Morgan.
Florida Woman Sentenced to Five Years in Prison for Role in Conspiracy to Distribute OxycodoneRead the Press Release
TRENTON, N.J. – A Florida woman was sentenced today to 60 months in prison for her role in an oxycodone distribution conspiracy in Flemington, New Jersey, U.S. Attorney Craig Carpenito announced.
Alicia Balaban, 35, of Wellington, Florida, previously pleaded guilty before U.S. District Judge Freda Wolfson to an information charging her with one count of conspiracy to distribute and possess with intent to distribute oxycodone. Judge Wolfson imposed the sentence today in Trenton federal court.
According to the documents filed in the case and statements made in Court:
From April 2016 through December 2017, Balaban, her mother, Michele Call, 63, of Flemington, New Jersey, and Nelida Rios, 55, also of Flemington, worked together to secure prescriptions for oxycodone, fill them at pharmacies in Flemington, and then distribute the pills to Marie DeJulia, 42, of Lodi, New Jersey, from Call’s and Rios’ residences for resale. The conspirators distributed thousands of 30 mg oxycodone pills.
In addition to the prison term, Judge Wolfson sentenced Balaban to three years of supervised release, and fined her $1,500. She ordered forfeiture of $93,560.
All of the defendants have pleaded guilty. On Nov. 20, 2018, Call was sentenced to 54 months in prison and Rios was sentenced to 48 months in prison. DeJulia is awaiting sentencing.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit in Newark.
Fifteen People Charged in Monmouth and Middlesex County Drug Trafficking ConspiracyRead the Press Release
Fourteen Arrests Made in Coordinated Takedown by Federal and State Law Enforcement; One Defendant At Large
TRENTON, N.J. – Fifteen people were charged for their roles in a conspiracy to distribute significant quantities of heroin and cocaine in the Bayshore area of Monmouth and Middlesex counties, U.S. Attorney Craig Carpenito announced today.
Fourteen of the defendants (see chart below) were charged by complaint with conspiracy to distribute 100 grams or more of heroin and all 15 defendants were charged with conspiracy to distribute 500 grams or more of cocaine. Those arrested today are scheduled to have their initial appearances this afternoon before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court. One defendant, Shavar Williams, remains at large.
According to documents filed in this case and statements made in court:
From May 2017 to November 2018 the defendants and others engaged in a drug trafficking conspiracy that operated in the Raritan Bayshore region of Middlesex and northern Monmouth counties.
Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin and cocaine, the use of confidential sources of information, and other investigative techniques, law enforcement learned that defendants Guy Jackson, Richard Gethers, and Deberal Rogers regularly obtained from defendant Gregory Gillens large quantities of heroin and cocaine for distribution. Defendant Lashawn Mealing, Jackson’s wife, also engaged in the conspiracy to distribute these illegal drugs along with her husband.
Members of the conspiracy redistributed the heroin and cocaine supplied by Gillens, for profit, to other conspirators, distributors, sub-dealers, and end users in the Bayshore area. Based on laboratory analysis of heroin obtained via controlled purchases from a member of the conspiracy, the heroin distributed by the conspiracy is believed to contain fentanyl, a dangerous synthetic opioid.
Law enforcement officials intercepted numerous discussions between the conspirators regarding the availability of quantities of heroin and cocaine, pricing, packaging, quantity, and customer satisfaction. The members of the conspiracy frequently took, and discussed taking, affirmative steps to avoid detection by law enforcement, including using prepaid cellular telephones with fictitious or no subscriber information, engaging in counter surveillance of law enforcement vehicles, using multiple vehicles to conduct narcotics transactions, discussing whether certain individuals might be cooperating with law enforcement, and speaking in coded language to disguise the illicit nature of their discussions.
The heroin and cocaine conspiracy counts charged in the complaint each carry a statutory mandatory minimum term of five years and a maximum of 40 years in prison, and a maximum fine of $5 million.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach, Brick, Howell, Toms River, Union Beach and Marlboro police departments, and the Monmouth County Sheriff's Office) under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of the FBI, Philadelphia Division, Scranton Resident Agency, under the direction of Special Agent in Charge Michael T. Harpster; the N.J. State Police, under the direction of Col. Patrick J. Callahan, Superintendent; the Matawan Police Department, under the direction of Chief Thomas J. Falco, Jr.; the Holmdel Police Department, under the direction of Chief John Mioduszewski; the Highlands Police Department, under the direction of Chief Robert Burton; the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Christopher J. Gramiccioni; the Old Bridge Police Department, under the direction of Chief William A. Volkert; the Keansburg Police Department, under the direction of Chief James K. Pigott; the Hazlet Police Department, under the direction of Chief Philip Meehan; and the Aberdeen Police Department, under the direction of Chief John T. Powers, with the investigation leading to today’s charges. U.S. Attorney Carpenito also thanked the Monmouth County Sheriff’s Office, under the direction of Sheriff Shaun Golden; the Monmouth County Police Academy, under the direction of Director Darryl G. Breckenridge; and the Monmouth County Correctional Institution, under the direction of Warden Donald Sutton; for their logistical support.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Name
Age
Residence
Guy Jackson
46
Effort, Pennsylvania
Gregory Gillens
46
Hillside, New Jersey
Lashawn Mealing
47
Effort, Pennsylvania
Richard Gethers
43
Perth Amboy, New Jersey
Deberal Rogers
46
Perth Amboy, New Jersey
Krystal Cordoba
33
Elizabeth, New Jersey
Daniel Alfano
44
Keansburg, New Jersey
Daniel McHugh
48
Sayreville, New Jersey
Tyler Scarangello
33
Belford, New Jersey
David Nagy
41
Old Bridge, New Jersey
Christy Dube
33
Cliffwood, New Jersey
George Holiday, Sr.
47
Union Beach, New Jersey
*Daryl Jackson
45
Old Bridge, New Jersey
Shavar Williams
43
Cliffwood, New Jersey
Brian Hall
47
Howell, New Jersey
*Defendant only charged with conspiracy to distribute cocaine.
Federal Jury Finds Florida Man Guilty of Traveling to Southern Illinois to Engage in Sex with a 13 Year Old ChildRead the Press Release
Abdon faces 10 years to life
Emmanuel D. Abdon, 31, a resident of Florida, was found guilty by a federal jury of enticement of minor (Count 1) and travel with intent to engage in illicit sexual conduct (Count 2). On Count 1, Abdon faces a term of imprisonment of not less than 10 years’ imprisonment, but not more than life, a term of supervised release of at least five years to life, a fine of not more than $250,000, and a special assessment of $100. On Count 2, Abdon faces a term of imprisonment of not more than 30 years, a term of supervised release of at least five years to life, a fine of not more than $250,000, and a special assessment of $100.
The evidence at trial established that, on January 13, 2018, Emmanuel Abdon, then 30 years old, traveled from Florida to Troy, Illinois, to meet and engage in sexual intercourse with a 13 year old female. Abdon visited the minor female’s house on 3 separate occasions. He was arrested in her driveway on his last visit to her house. The offense came to light when a 14 year old friend of the victim, who was present during the first meeting between Abdon and the victim at the victim’s house, told her foster mother about her concern that an adult male would travel from Florida to Illinois to meet a 13 year old girl. The foster mother than contacted the Troy Police Department who immediately launched an investigation. The evidence also established that, from
on or about December 22, 2017, until on or about January 13, 2018, the defendant, met the victim online and through text messaging, Facetime, and Snapchat, attempted to persuade, induce, entice and coerce the minor victim to engage in sexual activity with him when he arrived in Illinois.
"State and federal law enforcement will use every available resource to protect the community from those who lurk in the shadows of the internet seeking to prey upon children," said United States Attorney Steven D. Weinhoeft. Weinhoeft credited the work of the Troy Police Department and the Bureau of Homeland Security – Homeland Security Investigations for their work in this case.
The case is being prosecuted byAssistant United States Attorneys Angela Scott and George Norwood.
East Hartford Doctor Charged with Selling Oxycodone Prescriptions, Medical Marijuana CardsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that Dr. SHEIKH AHMED, 55, of Orange, was arrested today on a federal criminal complaint charging him with offenses related to the illegal prescribing of oxycodone, and illegal certification of patients for state medical marijuana cards.
Following his arrest, Ahmed appeared before U.S. Magistrate Judge Robert M. Spector in New Haven and was released on a $200,000 bond.
As alleged in the criminal complaint, Ahmed is a pediatrician who operates a medical practice, under the name East Hartford Medical Center, at 580 Burnside Avenue in East Hartford. Despite being a pediatrician, Ahmed’s practice does not appear to focus on children.
It is alleged that, between approximately October 2017 and May 2018, the DEA conducted an investigation of Ahmed using both a cooperating individual and an undercover agent who, equipped with recording devices, made visits to Ahmed’s practice in order to obtain prescriptions for Oxycodone. During the visits, Ahmed sought and received cash payment, typically $500, for a prescription. Ahmed did not conduct an appropriate medical examination when prescribing the oxycodone, and he made comments involving what dosage would be least likely to attract the attention of regulators, and what pharmacy was the least careful about monitoring prescriptions.
The complaint also alleges other dangerous and inappropriate ways Ahmed acted in prescribing oxycodone to the cooperating individual and undercover agent.
It is further alleged that, in March 2018, the cooperating individual sought and received a medical marijuana card from Ahmed, paying Ahmed $500 for an oxycodone prescription and $250 for a medical marijuana card. During the visit, Ahmed checked his computer for a qualifying diagnosis permitted by the Connecticut’s Medical Marijuana Program and selected “Complex Regional Pain Syndrome. Ahmed did not consult with the individual about whether he suffered from any condition that would render his use of marijuana medically appropriate.
The complaint alleges that Ahmed has certified approximately 165 patients for medical marijuana cards. Ahmed has used the diagnosis “Complex Regional Pain Syndrome” to justify a marijuana certification for 33 patients, and the majority of the certifications list a diagnosis of “Post-Traumatic Stress Disorder.”
The complaint charges Ahmed with conspiracy to distribute controlled substances, and aiding and abetting the possession of controlled substances outside the scope of professional practice and not for a legitimate medical purpose. The offenses carry a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the DEA’s New Haven Tactical Diversion Squad, which includes officers from the Bristol, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Eagle Butte Woman Sentenced for Larceny and Failure to AppearRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Larceny and Failure to Appear was sentenced on November 26, 2018, by U.S. District Judge Roberto A. Lange.
Angel Taylor, age 32, was sentenced to 9 months in federal prison on the Larceny charge, and an additional month in prison on the Failure to Appear charge. After being released from custody, Taylor will be on supervised release for 2 years. She was also ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
Taylor was indicted by a federal grand jury on August 16, 2017, for the Larceny charge, and on June 12, 2018, for the Failure to Appear charge. She pled guilty to both charges on September 5, 2018.
The Larceny conviction stemmed from an incident on February 5, 2017, when Taylor stole a pickup and personal property with a value of more than $1,000.00, from an individual.
The Failure to Appear conviction stemmed from an incident on March 21, 2018, when Taylor was summoned to appear before U.S. Magistrate Judge Mark A. Moreno for a scheduled hearing on her Larceny charge and failed to appear for court as directed.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Taylor was immediately turned over to the custody of the U.S. Marshals Service.
Drug Trafficking Kingpin Sentenced to 20 Years in PrisonRead the Press Release
PROVIDENCE - One of three brothers who admitted to running a large scale heroin and cocaine trafficking operation in Rhode Island, Massachusetts, and Connecticut was sentenced today to 20 years in federal prison.
Claudio Valdez, 46, of Woonsocket, and his brothers, Hector Valdez 45, of Woonsocket, and Juan Valdez, 51, of Milton, Mass., previously pled guilty in U.S. District Court in Providence, admitting that they arranged for several multi-kilogram shipments of heroin and cocaine from Mexico to drug stash houses in Cranston and Woonsocket, Rhode Island. The Valdez brothers then oversaw the distribution of the drugs to mid-level drug dealers and street dealers in the greater Providence and greater Boston areas and in Hartford, Connecticut.
Juan Valdez is scheduled to be sentenced on December 14, 2018. Hector Valdez is scheduled to be sentenced on January 18, 2019.
The three men, Dominican nationals, reentered the country illegally after having been previously convicted of felony drug crimes and deported. Immigration detainers have been lodged against all three.
At sentencing today, U.S. District Court Judge John J. McConnell, Jr., sentenced Claudio Valdez to 240 months in federal prison to be followed by 5 years supervised release.
As stipulated in a plea agreement filed with the Court, both the government and the defense recommended the Court impose a sentence of 240 months of incarceration. The U.S. Sentencing Guideline imprisonment range in this matter is 324 months to 405 months.
Claudio Valdez’s sentence is announced by United States Attorney Stephen G. Dambruch and Harold H. Shaw, Special Agent in Charge of the Boston Division of the FBI.
In April 2017, based on information developed by the FBI Safe Streets Task Force during an investigation dubbed “Operation Triple Play,” a reference to the three Valdez brothers, the FBI, assisted by federal, state, and local law enforcement agents and officers in three states, executed 15 federal arrest warrants and 13 search warrants. Immigration detainers were lodged against 9 of the defendants charged in this matter, identified as Dominican nationals, most of which were living in the United States with what are alleged to be stolen identities.
During the course of the investigation that began in September 2016, the FBI Safe Streets Task Force seized nearly 3.5 kilograms of fentanyl, nearly 4 kilograms of heroin - most of which was laced with fentanyl, more than 1.6 kilograms of cocaine, 142 grams of crack cocaine, more than 137 pounds of cutting agents, $45,500 in cash and 9 vehicles. 5 of the vehicles had hidden compartments used for transporting drugs and money.
The cases are being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan, with the assistance of Assistant U.S. Attorneys William J. Ferland, Ronald A. Gendron, and Richard W. Rose.
Operation Triple Play is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation initiated by the FBI Safe Streets Task Force. Under the direction of the FBI, the participating agencies in this investigation included the Drug Enforcement Administration (Providence and Boston Resident Agencies), Immigration and Customs Enforcement, Rhode Island State Police, Providence Police Department, Woonsocket Police Department, Central Falls Police Department, Cranston Police Department, Warwick Police Department, and the Rhode Island Department of Corrections.
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Drug Dealer and User Who Possessed Numerous Guns Sentenced to over Twelve Years in PrisonRead the Press Release
A drug dealer and user who possessed numerous guns, sold cocaine, and accidently shot someone after smoking marijuana was sentenced today to more than a dozen years in federal prison.
Kyler Jacob Junkins, age 20, from Marion, Iowa, received the prison term after a June 28, 2018, guilty plea to being a drug user in possession of a firearm and distribution of cocaine.
In a plea agreement, Junkins admitted that on March 28, 2017, he possessed a .22 caliber rifle. Information at sentencing showed that on that day, Junkins used marijuana and then accidently shot the rifle. The gunshot struck another person in the abdomen. Junkins admitted to possessing at least eight other guns in 2016 through 2017. One of the guns had an obliterated serial number and another gun had been altered in an attempt to make it silent. Junkins also admitted to selling cocaine on multiple occasions and trading drugs for guns.
Junkins was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Junkins was sentenced to 151 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department of Justice announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Junkins is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew Inman and Assistant United States Attorney Anthony Morfitt and investigated by the Bureau of Alcohol, Tobacco, and Firearms, the Marion Police Department, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-cr-16.
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