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31 January 2019
Department of Justice Recognizes Human Trafficking Prevention Month and Announces Update on Efforts to Combat this Violent CrimeRead the Press Release
In December 2018, President Trump proclaimed January 2019 as National Slavery and Human Trafficking Prevention Month, dedicating the month to raising national awareness of the issue of human trafficking and highlighting efforts to combat this violent crime. Over the last year, the Department of Justice fought human trafficking through investigating and prosecuting traffickers, dismantling transnational human trafficking networks, enhancing victim identification and protection of all victims of trafficking, and funding and providing domestic and international anti-trafficking programs.
"Human trafficking is a horrific crime against the human dignity of the victims, and it can have no place in our society," Acting Attorney General Matthew G. Whitaker said. "But the Department of Justice is taking action against the traffickers. In fiscal year 2018, the Department of Justice secured over 500 human trafficking convictions – an increase from the previous fiscal year. We also filed a record number of new cases. And in districts where our new Anti-Trafficking Coordination Teams are in place, we have ramped up the number of trafficking prosecutions. We have sent a clear message to traffickers that the Department of Justice will bring the full force of the law against them."
Investigating and Prosecuting Human Traffickers
In fiscal year 2018, the Justice Department initiated a total of 230 human trafficking prosecutions, charging 386 defendants and convicting a record 526 defendants. The Department continued its successful Anti-Trafficking Coordination Team (ACTeam) Initiative, working with partners in the Department of Homeland Security and the Department of Labor. In 2018, ACTeams saw significant prosecution results, including increases of 10 percent, 75 percent, and 106 percent, in cases filed, defendants charged, and defendants convicted.
Successful cases under ACTeam leadership include one of the largest sex trafficking prosecutions in U.S. history, in which the Justice Department convicted 36 defendants operating a sex trafficking scheme that exploited hundreds of Thai women in multiple states. Additionally, five members of a notorious international criminal organization, known as the Rendon-Reyes Sex Trafficking Organization, were sentenced to prison terms of 15 to 25 years. Prosecution resulted in dismantling of this organization, which forced young women and girls from Mexico and Central America into prostitution for over a decade.
Also in fiscal year 2018, the FBI initiated 649 human trafficking cases and arrested 2453 subjects. The FBI’s efforts contributed to 410 human trafficking convictions and 422 sentencings in this same period.
The Department’s Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute child sex traffickers and other individuals who sexually exploit children, as well as to identify and rescue victims. This collaborative effort yields powerful results, including, for example, five indictments and three superseding indictments charging a total of 19 defendants with sex trafficking offenses against children in the Southern District of New York.
Dismantling Transnational Human Trafficking Networks
The Department of Justice continues to lead the U.S. Mexico Bilateral Human Trafficking Enforcement Initiative in collaboration with DHS and Mexican law enforcement counterparts to combat human trafficking networks operating across the U.S.-Mexico border. The initiative has resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 170 defendants. The collaborative work of the initiative has enabled high-impact prosecutions have dismantled transnational trafficking networks through coordinated, bilateral enforcement actions to simultaneously apprehend associated traffickers in both the U.S. and Mexico.
The Justice Department also continues to target all individuals who contribute to sex trafficking, including online advertisers that facilitate the offense, such as Backpage.com. On April 5, 2018, several Backpage-related corporate entities, including Backpage.com, and Backpage’s co-founder and CEO Carl Ferrer pleaded guilty to federal charges and state charges in California and Texas for conspiring to facilitate prostitution and money laundering. On April 6, 2018, DOJ seized and shutdown Backpage.com in the U.S. and the 90+ other countries in which it operated.
Enhancing Human Trafficking Victim Identification and Protection
The Department of Justice continues to offer help to and pursue justice on behalf of the victims of this heinous crime. The FBI’s Victim Services Division deploys 183 Victim Specialists who provide direct assistance to federal victims of crime to include human trafficking victims. Victim Specialists provide hundreds of presentations a year educating thousands of participants on trafficking.
In fiscal year 2018, the Justice Department provided extensive training on best practices when investigating child sex trafficking cases. In January 2018, the Project Safe Childhood Investigating and Prosecuting the Prostitution of Children Seminar was held at the National Advocacy Center. The Department also sponsored the 2018 National Law Enforcement Training on Child Exploitation, held in Atlanta and attended by approximately 1,500 federal, state, local, and tribal personnel.
In 2018, the Executive Office for U.S. Attorneys (EOUSA), the Civil Rights Division’s Human Trafficking Prosecution Unit (HTPU), and the Child Exploitation and Obscenity Section (CEOS) published a quick reference guide entitled “Restitution for Human Trafficking Victims,” which will assist federal prosecutors in obtaining restitution for human trafficking victims. EOUSA also developed a “Toolkit” which provides information on practices, procedures, models, and forms employed in various U.S. Attorneys’ Offices that are helpful to establishing a pretrial coordination practice of obtaining restitution for victims.
As National Slavery and Human Trafficking Month draws to a close, the Department of Justice is committed to continuing its efforts to combat the heinous crime of human trafficking in 2019.
Denver Jury Convicts Attorney of Securities FraudRead the Press Release
DENVER – A Denver jury returned guilty verdicts against attorney Guy M. Jean-Pierre after a 12-day trial, announced United States Attorney Jason R. Dunn, Denver FBI Special Agent in Charge Dean Phillips, United States Postal Inspection Service Inspector in Charge Bill Hedrick, and IRS CI Special Agent in Charge Steven Osborne. Defendant Jean-Pierre was charged with securities fraud, mail fraud, wire fraud, money laundering and conspiracy. A Denver Jury returned guilty verdicts on all but one of twenty-nine charged counts on January 30, 2019.
Evidence presented at trial demonstrated that beginning in late 2010, defendant Jean-Pierre’s co-conspirators endeavored to establish a business that would obtain and retrofit steel shipping containers so that they could be used to grow plants hydroponically. With defendant Jean-Pierre’s help, the co-conspirators acquired a dormant publicly traded penny stock company and changed its name to FusionPharm as part of plans to develop and capitalize the business. The main business plan was to resell these repurposed shipping containers, which FusionPharm called “pharm pods,” to hydroponic growers. The pharm pods were, at times, marketed as effective vehicles to get fresh produce, such as lettuce, quickly and efficiently to restaurants and local groceries in urban markets. Over time, however, the pharm pods were marketed to marijuana or cannabis growers in Colorado and other states.
An object of the conspiracy was to conceal the co-conspirators’ role in the management and operation of FusionPharm, due to one of the co-conspirators’ prior securities felony conviction. Defendant Jean-Pierre prepared and transmitted documents that allowed FusionPharm to sell stock in violation of securities laws, falsely portrayed deposits of proceeds from the sale of FusionPharm common stock as convertible debt obligations, falsely portrayed other entities as non-affiliates of FusionPharm, concealed the role of other co-conspirators in the FusionPharm business, falsely represented that disclosure documents and financial statements constituted adequate current information about FusionPharm, and failed to disclose defendant Jean-Pierre’s role in drafting documents for another attorney to sign and represented as the other attorney’s own work product.
Sentencing is scheduled for July 10, 2019, at 9:30AM before United States District Court Judge William J. Martinez.
This case was investigated by the Denver Division of the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Internal Revenue Service Criminal Investigation Denver Field Office. Assistant United States Attorneys Jeremy Sibert and Robert Brown handled the prosecution.
CASE NUMBER: 17-cr-0008-WJM
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Darron Wint Sentenced to Life in Prison for Killing Four People in Northwest Washington Home InvasionRead the Press Release
WASHINGTON - Darron Wint, 37, also known as Daron Wint, formerly of Lanham, Md., was sentenced today to four consecutive sentences of life in prison, with no possibility of release, for the May 2015 slayings of Savvas Savopoulos; his wife, Amy Savopoulos; their son, Philip Savopoulos; and a household employee, Veralicia Figueroa.
The announcement was made by U.S. Attorney Jessie K. Liu, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Wint was found guilty by a jury on Oct. 25, 2018, of 20 felony charges, including multiple counts of first-degree murder while armed. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Juliet McKenna. At sentencing, Judge McKenna declared that the defendant’s conduct was “incomprehensible” and agreed with a jury finding that the crimes were heinous, atrocious and cruel.
“Today’s sentence holds Darron Wint accountable for kidnapping, torturing and ultimately murdering four innocent people, including a 10-year-old child, in an unspeakable ordeal that extended over almost 24 hours,” said U.S. Attorney Liu. “Our hearts go out to the Savopoulos and Figueroa families, and we hope that they can take some comfort in knowing that this dangerous man has been brought to justice.”
“Our hope is that today’s sentencing brings closure to the Savopoulos and Figueroa families, as well as the community who were all affected by this heinous crime,” said Chief Newsham. “MPD worked tirelessly with our local and federal law enforcement partners to bring justice and I believe that today we can all move forward. I commend the U.S. Attorney’s Office for their efforts that led to the conclusion of this case.”
“The tragic and horrific events of May 2015 are a grim reminder of why investigating violent crime is a top priority for ATF,” said Special Agent in Charge Benedict. “Today we take another step closer to justice for the victims and their families and another step closer to helping this community try to heal. ATF is committed to working with our law enforcement partners every day in our ongoing priority to reducing violent crime and securing the safety of our communities.”
During nearly six weeks of testimony, the government presented testimony from more than 60 witnesses, including some that linked Wint to the crime scene through DNA on a pizza crust and other items. The jury found Wint guilty of all charges that were filed against him in an indictment, including the murder counts and kidnapping, burglary, extortion and theft.
The charges involved a series of crimes that took place on May 13 and May 14, 2015, during a home invasion of the Savopoulos family residence in Northwest Washington.
According to the government’s evidence, on May 13, 2015, Wint entered the Savopoulos home and seized and kidnapped the four victims. The following day, he stole $40,000 through means of extortion, murdered the victims, and set fire to the house.
After responding to reports of the fire, authorities discovered the bodies of Savvas Savopoulos, 46, Amy Savopoulos, 47, Philip Savopoulos, 10, and Veralicia Figueroa, 57.
In the aftermath of the murders, Wint performed a series of Internet searches for subjects such as “how to beat a lie detector test,” “10 hideout cities for fugitives,” and “five countries with no U.S. extradition treaty.” According to the government’s evidence, he fled to New York after he was publicly identified as a person of interest in the case and hid in a hotel. He eventually returned to the area and was arrested on May 21, 2015. He has been in custody ever since.
All told, Wint was found guilty of a total of 12 counts of first-degree murder while armed, all with aggravating circumstances. The charges include four counts of first-degree murder while armed (felony murder) in the course of a kidnapping; four counts of first-degree murder while armed (felony murder) in the course of a burglary, and four counts of first-degree premeditated murder while armed. In addition, Wint was found guilty of four counts of kidnapping and one count each of first-degree burglary, extortion, arson, and first-degree theft.
This case was investigated by the Metropolitan Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistance was provided by the FBI, the U.S. Marshals Service, the U.S. Secret Service, the District of Columbia Department of Fire and Emergency Medical Services, the Prince George’s County, Md., Department of Fire and Emergency Medical Services, and the District of Columbia Department of Forensic Sciences.
The case was investigated and prosecuted by Assistant U.S. Attorneys Laura R. Bach, Christopher Bruckmann, and Emily A. Miller, and tried by Assistant U.S. Attorneys Bach and Bruckmann.
Assistance was provided by a team at the U.S. Attorney’s Office that included Victim/Witness Advocate Marcia Rinker; Paralegal Specialist Stephanie Siegerist; Deputy Chiefs Chrisellen Kolb, John Mannarino, and Elizabeth Danello, of the Appellate Division; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Supervisory Paralegal Specialist Sharon Newman; Paralegal Specialists Lornce Applewhite and Meridith McGarrity; former Paralegal Specialist Kendra Johnson; Supervisory Litigation Technology Specialist Leif Hickling; Litigation Technology Specialist Anisha Bhatia; Investigative Analyst Zachary McMenamin; Criminal Investigator John Marsh;, Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Victim/Witness Services Coordinator La June Thames; former Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Law Clerks Siri Palm and Julie Bessler, and former Law Clerk Jim McNally.
Criminal Complaint Filed Against Suspended Nurse Practitioner for Illegal PrescriptionsRead the Press Release
PITTSBURGH – Larry J. Goisse, Jr., 34, of Pittsburgh, Pa., has been charged by federal criminal complaint with illegal distribution of Schedule II controlled substances, United States Attorney Scott W. Brady announced today.
According to the federal criminal complaint filed in this case, Goisse is a Certified Registered Nurse Practitioner who owns and operates Prime Psychiatric Care, LLC, which has two offices in Pittsburgh. The complaint alleges that after Goisse’s Pennsylvania state medical licenses were revoked by the Commonwealth in July of 2018, Goisse continued to practice medicine and prescribe controlled substances to various individuals. Specifically, the complaint alleges that from September 11, 2018 through January 28, 2019, Goisse authorized 429 prescriptions for Schedule II and/or Schedule IV controlled substances to individuals, and that approximately 294 of those prescriptions, totaling 13,177 tablets, were for Schedule II drugs containing amphetamine. Because Goisse does not maintain a valid state medical license, he does not have the legal authority to authorize prescriptions for controlled substances.
Goisse was arrested today and is scheduled to make an initial appearance in federal court on Friday, February 1, 2019, at 11:00 a.m. before Magistrate Judge Robert C. Mitchell. Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The law provides for a maximum total sentence of not more than 20 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 offenses and the prior criminal history, if any, of the defendant.
The investigation leading to the filing of charges in these cases was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic. This unit has investigated and prosecuted more corrupt health care professionals than any other U.S. Attorney’s Office in the country.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
A criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Chelsea Man Pleads Guilty to RICO Conspiracy Involving Attempted MurderRead the Press Release
BOSTON – A Chelsea man pleaded guilty yesterday in federal court in Boston to RICO conspiracy involving attempted murder and drug trafficking.
Brandon Baez, aka “Big Baby,” pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity and one count of conspiracy to distribute cocaine base and cocaine. U.S. District Court Judge Richard G. Stearns scheduled sentencing for May 3, 2019.
During an investigation into a network of street gangs that had created alliances to traffic weapons and drugs throughout Massachusetts, Baez was identified as a member of the East Side Money Gang (ESMG), a Chelsea-based street gang, which used violence to further its criminal activities and enforce its internal rules. Specifically, ESMG uses violence to protect its members/associates, target rival gang members/associates and intimidate potential witnesses.
In intercepted calls on April 3, 2016, Baez informed Angel Mejia, a leader in the ESMG, that he had just shot two men in a black Cadillac at a gas station in Revere because he believed that they were members of a rival street gang. Baez told Mejia that he believed he had killed at least one of the intended victims. Two days before the shooting, Mejia and fellow ESMG member Josue Rodriguez had provided Baez with the .22 caliber revolver used in the shooting. Following the shooting, Baez asked Mejia for assistance getting a larger caliber handgun as no one was killed during the Revere shooting. Baez was subsequently arrested in Chelsea by local law enforcement officers while armed with the .22 caliber revolver used in the Revere shooting.
In October 2017, Rodriguez was sentenced to over 10 years in prison. Mejia previously pleaded guilty and is pending sentencing.
Baez is one of 53 defendants indicted in June 2016 on federal firearms and drug charges following an investigation into a network of street gangs that created alliances to traffic weapons and drugs and to generate violence against rival gang members. According to court documents, the defendants, who are leaders, members, and associates of the 18th Street Gang, East Side Money Gang and the Boylston Street Gang, were responsible for fueling a gun and drug pipeline across a number of cities and towns in eastern Massachusetts. During the course of the investigation, over 70 firearms were seized.
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. The charge of conspiracy to distribute cocaine and cocaine base provides for a maximum sentence of twenty years, a minimum of three years and up to life of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal for the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley made the announcement. The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments. Lelling’s Organized Crime and Gang Unit is prosecuting the case.
Camarillo Man Sentenced to 14 Years in Federal Prison for Scheming to Obtain Unemployment Benefits Through Sham CompaniesRead the Press Release
LOS ANGELES – A Ventura County man has been sentenced to 168 months in federal prison for participating in a massive fraud scheme that used dozens of nonexistent companies to collect nearly $5 million in unemployment benefits for phony employees who never performed any work at the fake entities.
Jack Benjamin Hessiani, a.k.a. “Jack Herrera,” 40, of Camarillo, was sentenced today by United States District Judge John A. Kronstadt. Hessiani pleaded guilty in August 2018 to one count of mail fraud.
According to court documents, Hessiani created numerous fictitious businesses for the sole purpose of defrauding the Employment Development Department (EDD), the state agency that administers the federal unemployment insurance program in California. After he and his co-schemers filed documents with EDD that showed made-up earnings for the fictitious workers, Hessiani and the co-schemers submitted claims for unemployment insurance benefits for laid-off “employees.” In fact, many of the “employees” were people who had agreed to provide their personal identifying information in exchange for a portion of the unemployment insurance benefits. Some of the benefit portions would go to drug users who likely used the funds to enable future drug purchases, while others were poor students who later faced criminal exposure as a result of the actions of Hessiani and his co-schemers, court papers state.
The unemployment benefits were sent in the form of checks and debit cards to “mail drops” that Hessiani and the co-schemers established in the names of other individuals, according to court documents. After EDD began issuing unemployment benefits, Hessiani ensured that documents were filed that falsely stated that the laid-off “workers” were still unemployed, and he later sought “extended benefits” to obtain unemployment insurance benefits for the sham workers beyond the normal six-month period. These extended benefits were ultimately funded by the United States Treasury.
According to court documents, Hessiani and his co-schemers submitted approximately 725 unemployment insurance claims – including 521 original claims and 204 claims for extended benefits – in the names of 384 “employees.” The investigation identified 43 fictitious companies based in Ventura County that were used to further the scheme, which caused EDD to suffer actual losses of $3.96 million and the United States Treasury to suffer actual losses of approximately $900,000. Hessiani enlarged his scheme by inducing the people whose names were already being used to obtain fraudulent benefits to “recruit” others who would be identified as additional false employees at the fictitious companies, and he paid referral fees for each new fake worker brought into the scheme.
Three other defendants in the case have pleaded guilty to criminal charges and are pending sentencing. They are Hessiani’s brother, James Manuel Herrera, 30, of Camarillo; Eduardo Josue Garcia, 27, of Camarillo; and Daniel Ayala-Mora, 29, formerly of Camarillo.
The investigation in this case was conducted by the United States Department of Labor, Office of Inspector General; the United States Secret Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the California Employment Development Department.
Assistant United States Attorneys Ranee Katzenstein and Julian André of the Major Frauds Section are prosecuting this case.
California Man Sentenced for Lying to Federal AgentsRead the Press Release
Abingdon, VIRGINIA – A California man, who made threats of violence against then-United States Congressman Tom Garrett, was sentenced yesterday in U.S. District Court in Abingdon to serve six months in federal prison, United States Attorney Thomas T. Cullen announced.
Eun Soo Lee, 24, of Cypress, California, previously pleaded guilty to a one-count, felony Information charging him with lying to a federal agent.
“Although the First Amendment protects an individual’s right to free speech, it does not license threats of harm or violence,” U.S. Attorney Cullen stated today. “As this case illustrates, the Department of Justice will react swiftly and aggressively to unlawful threats made using social media or other communications platforms.”
In May of 2017, Lee, using a fake Facebook account and virtual private network to hide his identity, made threats against then-Congressman Garrett.
Those threats included, but were not limited to:
“You’re dead if I ever meet you in real life, fu****. I’ll fu***** kill you.”
When questioned by law enforcement, Lee denied having a Facebook account, denied ever using a fake Facebook account, and denied ever sending messages to then-Congressman Garrett. Notwithstanding Lee’s efforts to hide his identity, investigators traced the messages to Lee, who eventually admitted to sending the threats.
The investigation of the case was conducted by the United States Capitol Police, with the assistance of the Federal Bureau of Investigation and Orange County (CA) Sheriff’s Office. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Burke County Man Sentenced to 20 Years for Transporting Child PornographyRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today John Arthur Coburn, 72, of Morganton, N.C., to 20 years in prison on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Coburn was also sentenced to a lifetime of supervised release and was ordered to register as a sex offender.
U.S. Attorney Murray is joined in making today’s announcement by John Eisert, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in the Carolinas.
According to filed documents and statements made in court, law enforcement were alerted to an individual, later identified as Coburn, using a peer-to-peer file sharing network to access child pornography on the internet. On November 2, 2017, law enforcement executed a search warrant at Coburn’s residence in Burke County and recovered, among other items, a laptop computer and a cellular phone. A forensic analysis of the Coburn’s cellular phone revealed that Coburn had used the device to produce lewd and lascivious child pornography images of a prepubescent minor female. In addition, law enforcement located child pornography on Coburn’s laptop, which he had downloaded using the peer-to-peer network. Coburn pleaded guilty in August 2018 to transportation of child pornography.
Coburn has been in federal custody since November 2017 and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by ICE/HSI. The U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Bronx Man Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that Lancelot Paul Lutchman was sentenced to 10 years in prison for his possession of files containing sexually explicit images of a minor. Lutchman pled guilty on September 12, 2018, before U.S. District Judge Paul A. Crotty, who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “For Lancelot Lutchman’s crimes against children, he will spend 10 years in federal prison. Our Office remains committed to finding and prosecuting criminals who prey on and abuse children.”
According to documents filed in this case and statements made in related court proceedings:
Between January 31, 2016, and January 21, 2017, LUTCHMAN used a peer-to-peer file sharing network to share approximately 845 unique video files known to contain child pornography. The child pornography included depictions of prepubescent children engaged in sexual activity with other children or adults. On January 26, 2017, law enforcement officers executed a search warrant for LUTCHMAN’s apartment and recovered his laptop computer, which contained numerous files of child pornography. As officers were entering the apartment, LUTCHMAN hid the laptop in his oven.
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In addition to the prison term, LUTCHMAN, 44, of the Bronx, was sentenced to five years of supervised release.
Mr. Berman praised the New York City Police Department for its outstanding investigative work. Mr. Berman also thanked the Bronx District Attorney’s Office for its invaluable assistance with this matter.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Kyle A. Wirshba and Daniel Loss are in charge of the prosecution.
Bozeman man admits child porn, cyberstalking chargesRead the Press Release
MISSOULA – A Bozeman man on Tuesday admitted to multiple charges accusing him of taking sexually explicit images of a minor girl, distributing the images and cyberstalking the victim by placing spytracker software on her cell phone, U.S. Attorney Kurt Alme said today.
Jamie Brock Grubb, 30, pleaded guilty to a total of 10 counts, including seven counts of distribution of child pornography, transportation of child porn, cyberstalking and interception of wire, oral and electronic communications.
Chief U.S. District Judge Dana L. Christensen presided. A sentencing date will be set later.
Grubb faces a minimum mandatory 15 years to 40 years in prison, a $250,000 fine and five years to life of supervised release on the most serious charge of distribution of child porn. He was detained.
Prosecutors said that in 2011, Grubb was in a relationship with a minor girl and took sexually explicit images of her. While a minor, the girl also took sexually images of herself and sent them electronically to Grubb. Grubb then distributed those images without the victim’s knowledge from 2015 to 2017.
During the investigation, Gallatin County Sheriff’s Office detectives got search warrants for Grubb’s email account and determined that he had transported the sexually explicit images and a video of the victim by emailing them to himself.
Detectives also analyzed the victim’s smart phone and other smart phones in Grubb’s possession and determined Grubb had placed spytracker software on the victim’s phone without her knowledge. There was evidence of the same software on Grubb’s phone. Detectives also found that Grubb had intercepted the victim’s communications, finding audio recordings of the victim’s phone calls with third parties on his phone. Grubb’s email account also showed records regarding the spytracker software.
Assistant U.S. Attorney Cyndee Peterson is prosecuting the case, which was investigated by U.S. Probation and Parole, the Gallatin County Sheriff’s Office and Homeland Security Investigations.
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Boone County Woman Pleads Guilty to Federal Drug ChargeRead the Press Release
CHARLESTON, W.Va. – A Boone County woman entered a guilty plea to a federal drug charge, announced United States Attorney Mike Stuart. Karen Kay Runion, 33, of Racine, pled guilty to distribution of heroin. Stuart commended the investigation conducted by the U.S. 119 Drug and Violent Crime Task Force.
“This defendant has a sad history,” said United States Attorney Mike Stuart. “Drug dealers are vipers feeding on the very fiber of our people and communities. We have a sense of urgency to relocate every dealer from our streets to a federal pen.”
In November of 2017, Runion sold heroin in Racine, West Virginia, including to a cooperating individual with the U.S. 119 Drug and Violent Crime Task Force. Runion admitted during her plea hearing that she had been distributing heroin for several years. Runion was previously convicted in 2013 in Boone County, West Virginia for the felony offense of Exposure of Children to Methamphetamine Manufacturing.
Runion faces up to 20 years in prison when sentenced on April 30, 2019.
Assistant United States Attorney L. Alexander Hamner handled the prosecution. United States District Judge John T. Copenhaver, Jr. presided over the plea hearing..
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Biloxi Man Pleads Guilty to Marijuana Conspiracy and Illegally Possessing a Firearm as a Convicted FelonRead the Press Release
Gulfport, Miss. – Kendell Jerome Smith, 35, of Biloxi, Mississippi, pled guilty today before U.S. District Judge Sul Ozerden to conspiracy to possess marijuana with intent to distribute and possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent-in-Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
In 2017, in the City of Biloxi Police Department Narcotics Division received community complaints about alleged drug activity at a house occupied by Smith and his girlfriend. In July 2017, detectives conducted surveillance on the house. On July 28, 2017, detectives conducted a traffic stop on Smith and found about 30 grams of marijuana.
A search warrant was obtained and a search of the home shared by Smith and his girlfriend revealed several baggies containing marijuana, other items indicating drug trafficking activity, and $2,514 in cash. Two loaded handguns also were found. The investigation revealed that Smith’s participation in the marijuana conspiracy lasted from July 2017 to July 2018. Smith previously had been convicted of a felony drug offense and was on state parole at the time of his arrest in July 2017.
Smith will be sentenced by Judge Ozerden on April 30, 2019. He faces a maximum penalty of 10 years in prison and a $500,000 fine for the conspiracy charge, and 10 years in prison and a $250,000 fine for the firearm charge.
U.S. Attorney Hurst commended the coordinated investigation by the ATF and the Biloxi Police Department. The case is being prosecuted by Assistant U.S. Attorney Stan Harris.
Bergen County, New Jersey, Man Charged with Receiving Child PornographyRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was arrested today for receipt of child pornography, U.S. Attorney Craig Carpenito announced.
Justin Madia, 60, of Hillsdale, New Jersey, is charged by complaint with one count of receipt of child pornography. He is scheduled to appear today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to documents filed in this case and statements made in court:
As early as June 9, 2018, Madia used an Internet based peer-to-peer network to request video files containing images of child pornography. On Jan. 31, 2019, law enforcement searched Madia’s residence and seized a computer and multiple electronic storage devices belonging to him. The electronic storage devices contained the peer-to-peer network software and multiple images of child pornography, including images of prepubescent children being sexually abused.
The charge of receipt of child pornography carries a mandatory minimum potential penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Craig Carpenito credited special agents with the FBI, under the direction of Special Agents in Charge Gregory W. Ehrie in Newark and Michael T. Harpster in Philadelphia; the Hillsdale Police Department, under the direction of Chief Robert Francaviglia; the Bergen County Prosecutor’s Office Cyber Crimes Unit, under the direction Acting Prosecutor Dennis Calo; and the N.J. Regional Computer Forensic Lab, under the direction of Director Steven Newman, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Sophie Reiter of the U.S. Attorney’s Office Public Protection Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Baltimore Man Pleads Guilty to Making Isis-Related Threats Against the Pentagon and Cnn News AffiliateRead the Press Release
Baltimore, Maryland – George Tomasack, age 47, of Baltimore, Maryland, pleaded guilty to making a series of telephone bomb threats in October 2016 against the Pentagon Tours Office and a CNN news affiliate.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Sung Yi of the United States Secret Service - Baltimore Field Office.
According to his plea agreement, on October 25, 2016, Tomasack made threatening calls to the Pentagon Tours Office and to CNN-Atlanta, in addition to other private and government locations. Tomasack admitted that during the calls he threatened to blow up the locations. Specifically, during the call to the Pentagon Tours Office, Tomasack stated that the call was an “ISIS threat” and “there will be a (unintelligible) at your building in five hours.” On that same day, Tomasack called a CNN news affiliate in Atlanta and stated that “he was associated with ISIS and they were going to blow up a government building.”
Telephone records obtained during the investigation to identify the caller revealed that in addition to the Pentagon, Tomasack called the White House, the Circuit Court for Baltimore City, the Department of Justice, the FBI Baltimore Field Office, and television news stations in Baltimore, Ft. Worth, Texas, and Sacramento, California.
Tomasack faces a maximum sentence of five years in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for May 3, 2019 at 11 a.m.
United States Attorney Robert K. Hur commended the U.S. Secret Service – Baltimore Field Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney James T. Wallner, who is prosecuting the case.
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"Project Safe Nashville," Nashville's Largest-Ever Interagency Effort to Fight Gun CrimeRead the Press Release
NASHVILLE, Tenn. -January 31, 2019 – In collaboration with the Metro Nashville Police Department and Metropolitan Nashville Mayor David Briley, U.S. Attorney Don Cochran today announced “Project Safe Nashville,” the city’s largest-ever interagency effort to fight gun crime.
Project Safe Nashville brings together the U.S. Attorney’s office; the Mayor’s Office; the Metro Nashville Police Department (MNPD); the Nashville-Davidson County District Attorney’s office; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Tennessee Bureau of Investigation (TBI); and the Federal Bureau of Investigation (FBI). The effort includes the creation of a specialized unit at MNPD; better coordination among agencies when tracking guns used in crimes; state and federal support for these efforts; and a more seamless and aggressive approach to investigating and prosecuting those who commit gun-related crimes.
The “Crime Gun Unit” of MNPD consists of six detectives and one sergeant, all current members of MNPD who have significant experience fighting gun crime and using the National Integrated Ballistics Information Network (NIBIN). The unit will use NIBIN to track shell casings from weapons fired in local crimes and connect those weapons to other crimes in the area, more quickly finding patterns to investigate. Based on a 2018 study by Rutgers University, when two shooting events are linked by ballistics evidence through NIBIN, 50% of the time a third shooting event will happen within 90 days.“I became the U.S. Attorney for the Middle District of Tennessee with no purpose in mind other than to try to make a difference and improve the quality of life for all of our citizens,” said U.S. Attorney Don Cochran. “The level of gun violence is not acceptable to me or to those who stand here with me today. ‘Project Safe Nashville’ marshals unprecedented resources from the Department of Justice and the law enforcement agencies represented here today. Our focus is to use scientific methods and innovative investigative techniques as tools to identify crime guns and those who use them and bring them to justice swiftly. Together, we intend to make Nashville and Middle Tennessee an even safer place for all of our citizens and visitors.”
“Addressing violent crime is a major priority for my administration. Project Safe Nashville is an unparalleled interagency effort to save lives and make our city safer. It is a vital next step in preventing future gun crimes and in successfully prosecuting those who commit violent crimes in our city,” said Mayor Briley. “It will also help us get weapons out of the hands of our kids, allowing us to intervene in their lives before it’s too late. I was very pleased to see the homicide rate for 2018 down by 22 percent, and I know Project Safe Nashville will give MNPD even more tools to support the great work they are already doing.”
MNPD’s Crime Gun Unit uses existing personnel and is budget-neutral. Overtime for the detectives is being supported by a $319,000 Department of Justice Safe Neighborhoods grant.
“The core, full-time mission of the group is to use state-of-the-art ballistic science and intelligence gathering to identify violent criminals who pose the most danger to Nashville citizens, and then work closely with prosecutors at the federal and local levels to ensure that these felons are held accountable for their actions,” Chief Anderson said.MNPD’s Crime Gun Unit will work closely with the U.S. Attorney’s office and the District Attorney’s office to support investigations and court proceedings that ensue from arrests made in gun crime cases. Two additional prosecutors have been added to the U.S. Attorney’s office to help handle these types of violent crime cases.
“The Nashville-Davidson County District Attorney’s office recognizes the proliferation of illegal weapons and the effects those weapons have in our community. It’s why we recently adopted a new policy stating that all gun-related cases will be handled at the Criminal Court level and not adjudicated in General Sessions Court,” said Glenn R. Funk, Nashville-Davidson County District Attorney. “We applaud this new Crime Gun Unit, as together we use professional manpower and advanced technology to find these weapons and the criminals who use them, get them off the streets, and make our community safer.”
Project Safe Nashville is also being supported by 10 ATF agents, two of whom will work directly with the Crime Gun Unit. Eight others are divided among the North, South, Hermitage and East Precincts, parts of which have relatively high rates of incidents of gun-related crime. This collaboration will help MNPD and ATF identify and prosecute persons illegally trafficking firearms in the Nashville area.
ATF Special Agent in Charge Marcus Watson remarked, “ATF’s Crime Gun Intelligence focuses on reducing violent crime and disrupting the shooting cycle that negatively impact our neighborhoods. The priority of protecting the public is evident with the partnerships with the City of Nashville and MNPD.”
The FBI, including MNPD members assigned to the FBI’s Violent Crimes Task Force, will support the new unit to continue to look closely at local robbery cases involving firearms that impact interstate commerce – robberies of convenience stores and drug stores, for example – so that those suspects, once identified, can be federally prosecuted whenever possible. The TBI will also support the unit when its work relates to crime within the state.
“The FBI is dedicated to disrupting and dismantling violent crimes in our communities,” said M.A. Myers, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. “Through Project Safe Nashville, the FBI's Violent Crime Task Force will continue to work with our federal, state, and local law enforcement partners to ensure the safety and security of our neighborhoods.”This initiative and partnerships are 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. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
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30 January 2019
Youth Coach Charged with Interstate Travel to Engage in Illicit Sexual Conduct, Transferring Obscene Material to a MinorRead the Press Release
PROVIDENCE – A Connecticut little league vice president and coach arrested on January 25, 2019, by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force, and charged in state court with indecent solicitation of a child and disseminating and possessing child pornography, was re-arrested today at his Connecticut residence on federal charges that he allegedly traveled to Rhode Island to engage in illicit sexual conduct with a minor, that he allegedly transferred obscene material to a person he believed to be under the age of 16, and that he allegedly received and possessed child pornography.
The charges brought today in federal court against Christopher Merchant, 33, of Canterbury, Conn., are related to the same alleged incidents that resulted in his arrest on Rhode Island state charges brought by Rhode Island State Police on January 25.
According to court documents, it is alleged that on numerous occasions Merchant communicated via social media with an individual he believed to be a 14-year-old boy. The communications quickly became sexually graphic. It is alleged that during the exchanges, Merchant arranged to meet with the boy at a Warwick hotel to engage in illicit sexual activity. It is also alleged that Merchant electronically sent obscene photographs to the person he was communicating with.
Upon his arrival at the hotel on January 25, Merchant was arrested, and a review of his cell phone allegedly uncovered child pornography. He was held on state charges at the ACI until posting bail on Monday.
Merchant appeared today before U.S. District Court Magistrate Judge Patricia A. Sullivan on a federal criminal complaint charging him with interstate travel to engage in illicit sexual activity, transfer of obscene material to a person under the age of 16 years, receipt of child pornography, and possession of child pornography. He was ordered detained in federal custody.
The federal charges brought today are announced by United States Attorney Aaron L. Weisman, Lieutenant Colonel Kevin M. Barry, Acting Superintendent of the Rhode Island State Police, and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Wilson Man Sentenced for Receipt and Possession of Child PornographyRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today United States District Judge James C. Dever, III sentenced COURTLAND BARNES, 28, of Wilson, North Carolina, to 168 months of imprisonment followed by ten years of supervised release for receipt and possession of thousands of images and videos containing child pornography.
BARNES was named in an eleven-count Indictment on May 8, 2018. On October 18, 2018, BARNES pled guilty to all counts in the indictment.
In October of 2014 The Cary Police Department began an online investigation relating to the distribution and receipt of child pornography through file sharing programs. During the course of the investigation, BARNES was found to be downloading and distributing child pornography from an IP address associated with his home. Homeland Security Investigations secured a search warrant for BARNES’s home and seized multiple electronic devices. The forensic examination of the devices found 3,839 images and 896 videos containing child pornography. The forensic examination, as well as statements made by BARNES during an interview, indicated that BARNES actively traded child pornography with other individuals on the internet using file sharing programs.
Mr. Higdon stated: “We remain committed to the aggressive prosecution of child pornography and child exploitation cases. The children depicted in the images and videos this defendant possessed and traded are illegal, immoral and work to victimize the children in them each time they are viewed, traded or used in any way. We are grateful for the sentence The Court handed down and hope it acts as a deterrent to anyone who would even think of involving themselves in this type of criminal activity.”
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Homeland Security Investigations conducted the criminal investigation of this case in cooperation with the Cary Police Department. Assistant United States Attorney Melissa Belle Kessler handled the prosecution of this case for the United States.
Vermont Man Pleads Guilty to Drug and Firearm ChargesRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that Nicholas J. Patten, 27, of Williston, Vermont pleaded guilty on Tuesday to drug trafficking and firearms charges.
According to court documents and statements made in court, on February 11, 2018, a New London police officer stopped to assist a motorist and observed the defendant slumped down in the driver’s seat. The officer also observed several needles, three rubber tourniquets, a syringe, and white powder on the defendant’s jeans and on the center console of the vehicle. The defendant woke up and began to thrash about the vehicle screaming things like “Help,” “I’m drowning,” and “I’m trapped.” The defendant later admitted that he used cocaine and stated that he did not know what he was on. The police later executed a search warrant on the vehicle and found approximately 191.8 grams of cocaine. The police also found $4420 in cash and a loaded Smith and Wesson 9 millimeter pistol, as well as fentanyl, oxycodone, and other smaller amounts of cocaine within the vehicle.
Patten pleaded guilty to possession of a controlled substance with intent to distribute and possession of a firearm and ammunition by an unlawful user of a controlled substance. He will be sentenced on May 13, 2019.
“Drug trafficking and firearms are a potentially lethal combination,” said U.S. Attorney Murray. “I commend the New London officers whose quick thinking helped to protect the community from harm. We will continue to partner with our law enforcement colleagues to protect the Granite State from drug trafficking and violent crime.”
The matter was investigated by the New London Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The New Hampshire Attorney General’s Drug Task Force also assisted in the investigation. Assistant United States Attorney Debra M. Walsh is prosecuting the case.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Van Buren, Arkansas Woman Sentenced to 24 Months Probation, $4,000 Restitution for Theft from Tribal OrganizationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jessie Lee Ross, age 44, of Van Buren, Arkansas, was sentenced to 2 years’ probation and ordered to pay restitution in the amount of $4,328.20 for Embezzlement And Theft From an Indian Tribal Organization, in violation of Title 18, United States Code, Section 1163. The charges arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation.
The Indictment alleged that from on or about September 1, 2014 to on or about September 25, 2014, in the Eastern District of Oklahoma, the defendant stole, embezzled and knowingly and willfully converted to her own use goods, assets, and other property, with a value in excess of $1,000.00, which had been entrusted to her custody and care as an employee of the Choctaw Nation of Oklahoma Casino gift shop, an Indian tribal organization.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney John David Luton represented the United States.
U.S. Attorney’s Guardians Project Results in Multiple Defendants Facing Federal Charges and SentencingRead the Press Release
United States Attorney Ron Parsons has announced the following charges and pleas in cases, identified below, brought by the Guardians Project, a collaborative federal law enforcement initiative in the District of South Dakota designed to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those responsible for adversely affecting those living in South Dakota’s Indian country communities.
Led by the U.S. Attorney’s Office, participating federal agencies in the Guardians Project include: the Federal Bureau of Investigation; Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; and the U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Business Owner Indicted for Bribery Related to Programs Receiving Federal Funds
John Thomas German, age 35 of Peever, South Dakota, was indicted on January 8, 2019, on three counts of bribery concerning programs receiving federal funds. German appeared before U.S. Magistrate Judge William D. Gerdes on January 24, 2019, and pleaded not guilty to the Indictment.
The Indictment alleges that on or about November 6, 2017, November 17, 2017, and between January 1, 2018, and August 10, 2018, in the District of South Dakota, John Thomas German, Jr., did corruptly give, offer, and agree to give a thing of value to any person intending to influence and reward an agent of the Dakota Nations Development Corporation, in connection with a transaction and series of transactions of the Dakota Nations Development Corporation involving $5,000 or more.
The maximum penalty upon conviction is up to 10 years in prison, and/or a $250,000 fine, or both, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy Jehangiri is prosecuting the case.
The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
Idaho Business Owner and His Company Plead Guilty to Wire Fraud and Conspiracy Charges for defrauding Oglala Sioux Tribe
Christopher A. Hoshaw, age 45, of Meridian, Idaho, appeared before U.S. District Judge Karen E. Schreier on January 28, 2019, and pleaded guilty to an Information that charged him with Wire Fraud. Hoshaw also appeared on behalf of his Boise-based company, All Around Sports, LLC, which pleaded guilty to Conspiracy to Commit Wire Fraud.
According to documents filed with the Court, beginning at a time unknown but no later than on or about December 2015, and continuing through December 2016, in the District of South Dakota and elsewhere, All Around Sports, LLC, with others known and unknown to the United States, did conspire to commit the offense of wire fraud. Through company representatives, All Around Sports, LLC, willfully and unlawfully devised a scheme to defraud and obtain money and property from others by means of false and fraudulent pretenses, representations, and promises. Those representatives knowingly participated, using the company as a conduit, by receiving money transfers from sources they knew were the victims of the fraudulent scheme. Those representatives also acted willfully for the purpose of enriching the company and themselves. The object of the conspiracy was to enrich the owner, managers, and employees of All Around Sports, LLC, by fraudulently obtaining funds.
On or about May 11, 2016, in the District of South Dakota and elsewhere, Christopher A. Hoshaw devised and intended to devise a scheme to defraud the Oglala Sioux Tribe, and to obtain money and property by means of materially false and fraudulent pretenses, representations, and promises. For the purpose of executing the scheme, Hoshaw knowingly caused to be transmitted by means of wire communication in interstate commerce the withdrawal of funds from a banking account belonging to the Oglala Sioux Tribe, at The First National Bank of Gordon in Gordon, Nebraska, to an account belonging to All Around Sports, LLC, at Idaho Central Credit Union in the State and District of Idaho. The amount of the wire transfer was $54,000.
A sentencing date was set for April 22, 2019. Hoshaw was released on bond pending sentencing. Another defendant, Kristin DeBoer previously pleaded guilty for her role in the fraud scheme on July 30, 2018. DeBoer was released on bond pending sentencing. Her sentencing date is set for May 6, 2019.
The maximum penalties that the company faces for Conspiracy to Commit Wire Fraud are probation, $500,000 fine, $400 special assessment to the Victim’s Assistance Fund, restitution, and forfeiture. The maximum penalties that Hoshaw and DeBoer face for Wire Fraud are 20 years in federal prison, $250,000 fine, or both imprisonment and a fine, a term of 3 years of supervised release, a $100 special assessment to the Victim’s Assistance Fund, restitution, and forfeiture.
These investigations are being conducted by the U.S. Department of Health and Human Services, Office of the Inspector General. The cases are being prosecuted by Assistant U.S. Attorney Jeremy Jehangiri.
Two Lowell Men Charged with Heroin and Fentanyl TraffickingRead the Press Release
BOSTON – Two Lowell men were indicted today in federal court in Boston for heroin and fentanyl trafficking.
Joshua Ramos-Rios, 30, and Anderson Daniel Jorge Cruz, 20, were indicted for conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and fentanyl. Ramos-Rios and Jorge Cruz were arrested on Jan. 23, 2019, and charged by complaint. They have been in custody since.
According to the charging documents, on Jan. 23, 2019, federal, state, and local law enforcement seized over one kilogram of suspected heroin and fentanyl from Ramos-Rios and Jorge Cruz in an undercover operation. Ramos-Rios is currently on parole in Massachusetts for drug and firearm offenses, and Jorge Cruz has an outstanding warrant for homicide in Allentown, Pennsylvania.
The charge of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years of supervised release, and a fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Lowell Police Superintendent Raymond Kelly Richardson; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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 the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Two Individuals Arrested for Fraud Targeting Actors and OthersRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today that THOMAS IRIGOYEN and NICHOLAS OFEI COFIE were charged with conspiring to commit wire and mail fraud in connection with a scheme to defraud actors in New York City and elsewhere. IRIGOYEN was arrested in California and will be presented today before a U.S. Magistrate Judge of the Central District of California, and COFIE was arrested in New York City and will be presented this afternoon before U.S. Magistrate Judge Barbara C. Moses in federal court in Manhattan.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Irigoyen and Cofie preyed on actors in New York and elsewhere, falsely offering their victims the chance to act in commercials, and ‘paying’ them upfront fees with fictitious money orders or checks. The victims were then allegedly duped into paying phantom ‘wardrobe consultants’ by withdrawing funds against the bogus money orders, and left liable for the withdrawals. The defendants’ own alleged role-playing performances have earned them arrests on federal charges.”
HSI Special Agent-in-Charge Angel M. Melendez said: “As alleged, this fraudulent scheme, operating out of New York and California, sought to exploit the aspirations of young actors, defrauding them of thousands of dollars. These two individuals allegedly used professional actors, misled them for their own gain while crushing their dreams in the process. But now, thanks to the diligent work of law enforcement, they will face the consequences of their alleged crimes.”
NYPD Commissioner James P. O’Neill said: “These charges reflect the increasingly sophisticated ways criminals target people eager to find success in new and potentially lucrative careers. Something that will never change, however, is the focused determination of the NYPD and our law enforcement partners to keep people safe by fighting crime wherever it may lurk – including in the dark corners of cyberspace. I thank the U.S. Attorney for the Southern District and Homeland Security Investigations, whose members helped us uncover and identify the individuals named in this complaint. Together, we demonstrate time and again that we are patient and that our collaborative forces have a long reach. We will continue to be relentless in our mission to dismantle these types of operations and bring those who run them to justice.”
According to the allegations in the Complaint sworn out in Manhattan federal court:[1]
Between approximately December 2016 and the present, IRIGOYEN and COFIE participated in a conspiracy that took advantage of aspiring actors. As part of the scheme, IRIGOYEN and COFIE offered aspiring actors the opportunity to act in a commercial, provided those actors with an upfront payment in the form of a fake money order or check, and persuaded the actors to withdraw money against the fake money orders or checks and to transfer a substantial portion of the withdrawn money to so-called “wardrobe consultants” via wire transfer, the mail, and converting the money into cryptocurrency.
In the end, the jobs promised to the actors were fictitious, the financial instruments provided to the actors were fake, and the wardrobe consultants were non-existent. The victims of the scheme were left liable for the value of the fake financial instruments they had deposited into and transferred out of their respective bank accounts.
In the course of the conspiracy, IRIGOYEN purchased postage and mailed more than 450 envelopes from fictitious production companies to actors. IRIGOYEN also received payments that actors believed they were sending to “wardrobe consultants.” A bank account controlled by COFIE was presented to at least one actor-victim as an account affiliated with a “wardrobe consultant.”
In addition to the scheme described above, COFIE is also charged with one count of wire fraud for his role in defrauding a female who was tricked into believing she was entering a romantic relationship with a third party and who then transferred thousands of dollars into bank accounts under COFIE’s control.
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IRIGOYEN, 51, of Kingsburg, California, and COFIE, 36, of the Bronx, New York, are each charged with one count of conspiring to commit mail fraud and wire fraud, which carries a maximum sentence of 20 years. COFIE is separately charged with an additional count of wire fraud, which carries a maximum sentence of 20 years.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of HSI and NYPD.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Daniel H. Wolf is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two Dominican Nationals Indicted for Drug TraffickingRead the Press Release
BOSTON – Two Dominican nationals were indicted today in federal court in Boston for heroin trafficking.
Angel Martinez-Peguero, 27, and his brother Alexander Martinez-Peguero, 38, both of whom resided in Lawrence, were charged with conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin. Angel Martinez-Peguero was additionally charged with possession of a firearm in furtherance of a drug trafficking crime. The brothers will be arraigned at a later date set by the court.
According to the charging documents, on Dec. 20, 2018, investigators seized nearly one kilogram of heroin from the Martinez-Peguero brothers during a law enforcement operation in Lawrence. Investigators also seized a loaded semi-automatic pistol from Angel Martinez-Peguero’s waistband upon his arrest.
The charge of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin carries a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of $5 million. The charge of possession of a firearm in furtherance of a drug trafficking crime provides for a mandatory minimum sentence of five years in prison to be served consecutive to any sentence imposed for the underlying drug trafficking crime. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tuba City Man Sentenced to 19 Years in Federal Prison for Second Degree MurderRead the Press Release
PHOENIX – This week, Eric Mychal Iron, 33, of Tuba City, Ariz., a member of the Navajo Nation, was sentenced by U.S. District Judge Diane J. Humetewa to 228 months in prison, followed by a term of five years of supervised release. Iron had previously pleaded guilty to second degree murder.
On Dec. 4, 2016, while recklessly driving at approximately two times the posted speed limit, Iron failed to stop for a stop sign and the collision caused the four victims in the other vehicle to be ejected, resulting in fatal injuries to two of them, including a minor. The two other victims suffered serious bodily injuries due to the crash. Blood taken from Iron almost two hours after the accident was found to have a blood alcohol content of .308%, close to four times the legal limit. Iron had previously been convicted in tribal court of crimes related to intoxication, including driving under the influence. The victims were/are members of the Navajo Nation and the murder happened on the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Navajo Nation Department of Law Enforcement, and the Arizona Department of Public Safety. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-08087-PCT-DJH
RELEASE NUMBER: 2019-001_Iron
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Town of Bethlehem Agrees to Increase Accessibility in Order to Comply with Americans with Disabilities ActRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with the Town of Bethlehem, Connecticut, to resolve allegations that Bethlehem’s Town Hall and Memorial Hall buildings were not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by an individual with disabilities alleging that Bethlehem’s Town Hall and Memorial Hall facilities were not accessible to individuals with physical disabilities. Bethlehem is in the process of making changes to both facilities as required by the settlement agreement, including improving the accessibility of entrances and access routes, increasing the number of accessible parking spaces and adding van accessible parking spaces, adding accessible features to restrooms, and providing accessible signage. Bethlehem is also updating its policies and procedures to ensure access for individuals with disabilities to the Town Clerks’ Office, the Registrar of Voters, and the First Selectman’s Office. Bethlehem will continue to make improvements and changes to enhance accessibility over the next 23 months.
Under federal law, public entities are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
U.S. Attorney Durham commended the leadership of the Town of Bethlehem for having worked cooperatively and collaboratively with the U.S. Attorney’s Office to address the ADA issues expeditiously and without litigation.
“Among the most important protections provided by the Americans with Disabilities Act are those ensuring individuals with disabilities have access to public services, such as voting and participating in civic activities and town meetings,” said U.S. Attorney Durham. “Our Office is committed to enforcing the ADA, which requires public entities, including municipalities, to provide access to individuals with disabilities. We greatly appreciate the willingness of the Town of Bethlehem and the commitment of its First Selectman to greatly increase the accessibility and usability of Bethlehem’s Town Hall and Memorial Hall facilities.”
Any member of the public who wishes to file a complaint alleging that a public entity or place of public accommodation in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Three St. Croix Men Plead Guilty to Distribution of Cocaine and Crack CocaineRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced that on Friday, January 18, 2019, Robert Klyvert, 47, of St. Croix, Virgin Islands, pleaded guilty before U.S. Magistrate Judge George Cannon, Jr., to distribution of crack cocaine. On January 29, 2019, Nolly King Jr., 36, pleaded guilty to distribution of crack cocaine and Thaddeus Hendricks, 39, both of St. Croix, pleaded guilty to distribution of cocaine, before Judge Cannon.
According to plea agreements filed with the court, in September of 2016, the defendant, Robert Klyvert, aka "Family", told a confidential human source (CHS) that he wanted to begin supplying cocaine to the CHS directly, now that one of Klyvert’s associates was dead. Through phone calls and text messages over the next few months, Klyvert informed the CHS that he had a kilogram of cocaine in Florida; that Klyvert would contact the CHS once the cocaine arrived in the United States; and that the CHS would need to travel to Florida to receive it. Klyvert also stated that the cocaine would be "fronted" to the CHS, who would have approximately a week to sell the drugs and pay $25,000 to Klyvert. In addition, Klyvert advised the CHS that the cocaine was not good for "the nose" (in other words, to snort as powder cocaine) and that it was only suitable for converting into crack cocaine. Klyvert told the CHS that if he sold this kilo quickly, the defendant’s supplier would ship another kilogram to the United States on January 2, 2017, and the CHS could purchase that kilogram as well.
After a series of text messages from Klyvert, the CHS obtained the cocaine from defendant Nolly King at King’s Florida residence. Shortly thereafter, Klyvert texted the CHS advising the CHS that he only needed to pay $22,000 for the cocaine, as the amount of cocaine was approximately 4 ounces short of a full kilo, so he did not need to pay the $25,000 they had previously agreed upon. Laboratory tests subsequently confirmed that the substance received by the CHS on December 30, 2016 was cocaine base (also known as "crack" cocaine) and cocaine hydrochloride with a net weight of over 884 grams.
Shortly thereafter on January 15, 2017, defendant Hendricks travelled from St. Croix to St. Thomas to deliver cocaine for Robert Klyvert aka "Family." The CHS picked up Hendricks at the Cyril E. King Airport in St. Thomas and transported him to the Palms Court Hotel. The CHS gave Hendricks $22,000 in exchange for cocaine that the CHS had previously picked up in Orlando. Hendricks returned to St. Croix, where Klyvert met Hendricks at the Rohlsen Airport. Laboratory tests subsequently confirmed that the cocaine transported by Hendricks had a net weight of over 971.8 grams.
Klyvert faces a mandatory minimum sentence of 15 years and not more than life, and up to a $10,000,000 fine. His sentencing date has been set for May 22, 2019. King faces a mandatory minimum of 10 years and not more than life and up to a $10,000,000 fine. Hendricks faces a mandatory minimum of five (5) years and not more than 40 years and up to a $5,000,000 fine. A sentencing date has been set for May 30, 2019 for both King and Hendricks.
The case was investigated by the Federal Bureau of Investigation with assistance from the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorneys Rhonda Williams-Henry and Melissa Ortiz.
Sunoco pipeline LP to pay more than $5.4m and take oil-spill prevention steps to settle claims for pipeline spills in three statesRead the Press Release
WASHINGTON – In the latest joint federal-state Clean Water Act enforcement action, Sunoco Pipeline L.P. has agreed to pay civil penalties and state enforcement costs and to implement corrective measures to resolve alleged violations of the Clean Water Act and state environmental laws by Sunoco and Mid-Valley Pipeline Company stemming from three crude oil spills in 2013, 2014, and 2015, in Texas, Louisiana, and Oklahoma.
The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the Louisiana Department of Environmental Quality (LDEQ) jointly announced the settlement.
Under a proposed consent decree lodged today in the U.S. District Court for the Western District of Louisiana, Sunoco will pay the United States $5 million in federal civil penalties for the Clean Water Act violations and pay LDEQ $436,274.20 for civil penalties and response costs to resolve claims asserted in a complaint filed today. Additionally, Sunoco agreed to take actions to prevent future spills by identifying and remediating the types of problems that caused the prior spills. This includes performing pipeline inspections and repairing pipeline defects that could lead to future spills. Sunoco is also required to take steps to prevent and detect corrosion in pipeline segments that Sunoco is no longer using. Mid-Valley, the owner of the pipeline that spilled oil in Louisiana, is responsible, along with Sunoco, for payment of the civil penalties and state costs relating to the Louisiana spill.
“This settlement holds Sunoco and Mid-Valley accountable for the harms to the environment caused by their oil spills and requires Sunoco to improve its environmental safety compliance for the oil pipelines that it operates in Texas, Louisiana, and Oklahoma,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “This excellent result shows how a strong federal and state partnership can bring about effective environmental enforcement to protect local communities in these states.”
“My office is committed to protecting Louisiana’s environment for the health, well-being, and enjoyment of our citizens,” said U.S. Attorney David C. Joseph for the Western District of Louisiana. “This settlement is but one example of my commitment to work with the Environmental Protection Agency and Louisiana Department of Environmental Quality to make Louisiana a cleaner and healthier place to live.”
“Our nation relies on the oil and gas sector to meet our energy needs, and we also expect companies to do so while protecting our vital water resources,” said EPA Regional Administrator Ann Idsal. “Companies who violate this responsibility must face consequences and assure their future compliance.”
“Pipelines are generally a very safe medium for transporting crude oil, but like any other infrastructure, pipelines require maintenance and monitoring. When companies neglect these necessary actions, pipelines can weaken and a spill can occur, which results in damage to the environment,” said LDEQ Secretary Dr. Chuck Carr Brown. “LDEQ is committed to pursuing legal action against anyone whose actions cause damage to the environment of the state of Louisiana.”
The Complaint alleges federal and state claims relating to three crude oil spills: a 2013 spill of 550 barrels in Tyler County, Texas; a 2014 spill of approximately 4,500 barrels in Caddo Parish, near Mooringsport, Louisiana; and a 2015 spill of 40 barrels in Grant County, Oklahoma. The Texas spill affected Russell Creek, which flows to the Neches River. The Louisiana spill—the largest of the three—flowed to Tete Bayou, a tributary of Caddo Lake. The Oklahoma spill flowed into two creeks that flow to the Arkansas River, affecting an area of about a half a mile. All three spills resulted from pipeline corrosion.
The Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. The penalty paid to the United States will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. Those funds will be available to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.
The proposed consent decree, lodged with the court today, is subject to a public comment requirements and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/consent-decrees.
Sunoco Pipeline LP to Pay More Than $5.4 Million and Take Oil-Spill Prevention Steps to Settle Claims for Pipeline Spills in Three StatesRead the Press Release
In the latest joint federal-state Clean Water Act enforcement action, Sunoco Pipeline L.P. has agreed to pay civil penalties and state enforcement costs and to implement corrective measures to resolve alleged violations of the Clean Water Act and state environmental laws by Sunoco and Mid-Valley Pipeline Company stemming from three crude oil spills in 2013, 2014, and 2015, in Texas, Louisiana, and Oklahoma.
The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the Louisiana Department of Environmental Quality (LDEQ) jointly announced the settlement.
Under a proposed consent decree lodged today in the U.S. District Court for the Western District of Louisiana, Sunoco will pay the United States $5 million in federal civil penalties for the Clean Water Act violations and pay LDEQ $436,274 for civil penalties and response costs to resolve claims asserted in a complaint filed today. Additionally, Sunoco agreed to take actions to prevent future spills by identifying and remediating the types of problems that caused the prior spills. This includes performing pipeline inspections and repairing pipeline defects that could lead to future spills. Sunoco is also required to take steps to prevent and detect corrosion in pipeline segments that Sunoco is no longer using. Mid-Valley, the owner of the pipeline that spilled oil in Louisiana, is responsible, along with Sunoco, for payment of the civil penalties and state costs relating to the Louisiana spill.
“This settlement holds Sunoco and Mid-Valley accountable for the harms to the environment caused by their oil spills and requires Sunoco to improve its environmental safety compliance for the oil pipelines that it operates in Texas, Louisiana, and Oklahoma,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “This excellent result shows how a strong federal and state partnership can bring about effective environmental enforcement to protect local communities in these states.”
“My office is committed to protecting Louisiana’s environment for the health, well-being, and enjoyment of our citizens,” said U.S. Attorney David C. Joseph for the Western District of Louisiana. “This settlement is but one example of my commitment to work with the Environmental Protection Agency and Louisiana Department of Environmental Quality to make Louisiana a cleaner and healthier place to live.”
“Our nation relies on the oil and gas sector to meet our energy needs, and we also expect companies to do so while protecting our vital water resources,” said EPA Regional Administrator Ann Idsal. “Companies who violate this responsibility must face consequences and assure their future compliance.”
“Pipelines are generally a very safe medium for transporting crude oil, but like any other infrastructure, pipelines require maintenance and monitoring. When companies neglect these necessary actions, pipelines can weaken and a spill can occur, which results in damage to the environment,” said LDEQ Secretary Dr. Chuck Carr Brown. “LDEQ is committed to pursuing legal action against anyone whose actions cause damage to the environment of the state of Louisiana.”
The Complaint alleges federal and state claims relating to three crude oil spills: a 2013 spill of 550 barrels in Tyler County, Texas; a 2014 spill of approximately 4,500 barrels in Caddo Parish, near Mooringsport, Louisiana; and a 2015 spill of 40 barrels in Grant County, Oklahoma. The Texas spill affected Russell Creek, which flows to the Neches River. The Louisiana spill—the largest of the three—flowed to Tete Bayou, a tributary of Caddo Lake. The Oklahoma spill flowed into two creeks that flow to the Arkansas River, affecting an area of about a half a mile. All three spills resulted from pipeline corrosion.
The Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. The penalty paid to the United States will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. Those funds will be available to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.
The proposed consent decree, lodged with the court today, is subject to a public comment requirements and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/consent-decrees.
Stigler Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Clinton Shane Strable, age 36, of Stigler, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that, on or about April 22, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms and ammunition, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Haskell County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Clay Compton represented the United States.
Stigler Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Clinton Shane Strable, age 36, of Stigler, Oklahoma, entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleged that, on or about September 18, 2018, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Pittsburg County Sheriff’s Office and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Clay Compton represented the United States.
Rhode Island Man Sentenced for Bank RobberyRead the Press Release
BOSTON - A Rhode Island man was sentenced today in federal court in Boston for bank robbery.
Stephen A. Davidow, 55, of Pawtucket, R.I., was sentenced by U.S. District Court Chief Judge Patti B. Saris to seven years in prison, three years of supervised release, and ordered to pay restitution of $8,817. In September 2018, Davidow pleaded guilty to four counts of bank robbery.
Between Dec. 6 and Dec. 11, 2017, an individual, later identified as Davidow, robbed four banks in the Greater Boston area. Based on the physical location of the banks, surveillance footage, the bank tellers’ descriptions of the robber, and other similarities, law enforcement determined that the same individual was involved in each robbery. On Dec. 15, 2017, having distributed images of the alleged perpetrator to the local news, law enforcement received a tip that the suspect was Davidow. Photos of Davidow were shown to one of the tellers who positively identified Davidow as the man who robbed the bank.
During the time of the robberies, Davidow was on supervised release for a 2007 bank robbery conviction in Rhode Island. Davidow was located and was arrested on Dec. 18, 2017, in Massachusetts on a Rhode Island federal warrant and has been in custody since his arrest.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; John Gibbons, U.S. Marshal for the District of Massachusetts; Boston Police Commissioner William Gross; and Boston University Police Chief Kelly A. Nee made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Rapid City Man Indicted for Failing to Pay TaxesRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Pay Tax.
Gregory Sperlich, age 48, was indicted on January 22, 2019. He appeared before U.S. Magistrate Judge Veronica Duffy on January 28, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 1 year in prison and/or a $100,000 fine, and $25 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that Sperlich did willfully fail to pay the income and self-employment tax due to the Internal Revenue Service by April 15, 2013, through April 15, 2016, for the filed taxes due for the calendar years 2012―2015.
The charges are merely accusations and Sperlich is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Sperlich was released on bond pending trial. A trial date has not been set.
Project Safe Neighborhoods Prosecution Results in Significant Prison Sentence for Felon in Unlawful Possession of A Stolen FirearmRead the Press Release
LAS VEGAS, Nev. – A felon who shot a person with a loaded stolen semi-automatic pistol was sentenced today to a total of 57 months in federal prison, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI.
“DOJ’s Project Safe Neighborhoods Program is designed to take guns off our streets and make our communities safer,” said U.S. Attorney Trutanich. “This case demonstrates the dangers of local police work and importance of strong local and federal partnerships to protect the citizens of Nevada. Law enforcement will work together to enforce gun laws.”
“Today’s sentencing is yet another example of the result that comes from strong law enforcement partnerships,” said Special Agent in Charge Rouse. “The Criminal Apprehension Team (CAT) is a FBI-led, multijurisdictional task force consisting of the FBI, Las Vegas Metropolitan Police Department, Henderson Police Department, and North Las Vegas Police Department, that targets the most violent fugitives.”
Steven Lamar Reed, 28, of Las Vegas, previously pleaded guilty to one count of felon in possession of a firearm. He has prior felony convictions in California including robbery and felon in possession of a firearm. In addition to the prison term, U.S. District Judge Kent J. Dawson sentenced him to three years of supervised release.
On April 11, 2017, members of the FBI’s CAT attempted to arrest Reed for his involvement in an earlier shooting. He also had an arrest warrant for a felony parole violation in California. When officers identified themselves and approached Reed at an apartment complex, he immediately fled, leading officers on a lengthy foot chase. Before climbing a wall in an attempt to evade arrest, a .45 caliber pistol fell from his waistband and the pistol was secured by law enforcement. This firearm had been previously stolen in a residential burglary and was used by Reed in the earlier shooting. Reed was taken into custody by law enforcement.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Phillip N. Smith Jr. and Elham Roohani prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice 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 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 announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Pierre Man Indicted for Criminal Contempt ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Criminal Contempt.
Charles Black Spotted Horse, age 26, was indicted on January 22, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 29, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 6 months in federal prison and/or a $1,000 fine, and $10 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 26, 2018, Black Spotted Horse disobeyed and resisted an order and command of the U.S. District Court, in that he failed to self-report for arrest and left the federal building.
The charge is merely an accusation and Black Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Black Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Pathology Laboratory Agrees to Pay $63.5 Million for Providing Illegal Inducements to Referring PhysiciansRead the Press Release
Pathology laboratory company Inform Diagnostics has agreed to pay $63.5 million to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today. Inform Diagnostics, formerly known as Miraca Life Sciences Inc., is headquartered in Irving, Texas, and was a subsidiary of Miraca Holdings Inc., a Japanese company, during the period relevant to the case. In 2017, majority ownership of the company changed, and the company was renamed.
“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources because those relationships can alter a physician’s judgment about the patient’s true health care needs and drive up health care costs for everybody,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “In addition to yielding a substantial recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
The settlement announced today resolves allegations that the company violated the Anti-Kickback Statute and the Stark Law by providing to referring physicians subsidies for electronic health records (EHR) systems and free or discounted technology consulting services. The Anti-Kickback Statute and the Stark Law restrict the financial relationships that health care providers, including laboratories, may have with doctors who refer patients to them. Although regulations adopted by the Department of Health and Human Services (HHS) in 2006 included provisions that allowed laboratories to provide EHR donations to physicians under certain conditions, the United States alleged that the defendant violated those conditions. HHS withdrew those exemptions for laboratories in 2013.
“The wellbeing and needs of the patient should always be a medical provider’s primary considerations,” said U.S. Attorney Don Cochran of the Middle District of Tennessee. “The restrictions imposed by federal statutes exist to prevent improper influence on the parties prescribing and providing medical services, including laboratory tests. We will continue to enforce the laws that protect the integrity of federal health care programs.”
“Patients deserve the unfettered, independent judgment of their health care professionals. Offering financial incentives to physicians and medical practices in exchange for referrals undermines citizens’ trust in our health care system,” said United States Attorney Maria Chapa Lopez of the Middle District of Florida. “With this settlement, our Civil Division confirms its commitment to our nation’s critical struggle against practices that put public health programs at risk.”
“When health care providers are distracted by suspect financial arrangements, the interests of patients can be cast aside,” said Special Agent in Charge Derrick L. Jackson of HHS OIG. “Our agency, working closely with our law enforcement partners, will continue to protect patients and the federal health care programs that serve them.”
The allegations stem from three lawsuits that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the United States for false claims and share in any recovery. The whistleblowers’ share of the settlement announced today has not yet been determined.
The case was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Tennessee, the U.S. Attorney’s Office for the Middle District of Florida, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. The claims asserted against Miraca are allegations only, and there has been no determination of liability.
The cases are captioned: United States ex rel. Dorsa v. Miraca Life Sciences, Inc., Case No. 13-cv-1025 (M.D. Tenn.); United States ex rel. LPF, LLC v. Miraca Life Sciences, Inc., et al., 3:16-cv-1355 (M.D. Tenn.); and United State ex rel. Heaphy, et al. v. Miraca Life Sciences, Inc., 3:18-cv-1027 (M.D. Tenn.).
Pathology Laboratory Agrees to Pay $63.5 Million for Providing Illegal Inducements to Referring PhysiciansRead the Press Release
NASHVILLE, Tenn. – January 30, 2019 – Pathology laboratory company Inform Diagnostics has agreed to pay $63.5 million to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department, United States Attorney Don Cochran for the Middle District of Tennessee, and United States Attorney Maria Chapa Lopez for the Middle District of Florida announced today. Inform Diagnostics, formerly known as Miraca Life Sciences, Inc., is headquartered in Irving, Texas, and was a subsidiary of Miraca Holdings, Inc., a Japanese company, during the period relevant to the case. In 2017, majority ownership of the company changed, and the company was renamed.
“The wellbeing and needs of the patient should always be a medical provider’s primary considerations,” said U.S. Attorney Don Cochran of the Middle District of Tennessee. “The restrictions imposed by federal statutes exist to prevent improper influence on the parties prescribing and providing medical services, including laboratory tests. We will continue to enforce the laws that protect the integrity of federal health care programs.”
The settlement announced today resolves allegations that the company violated the Anti-Kickback Statute and the Stark Law by providing subsidies for electronic health records (EHR) systems and free or discounted technology consulting services to referring physicians and physician groups. The Anti-Kickback Statute and the Stark Law restrict the financial relationships that health care providers, including laboratories, may have with doctors who refer patients to them. Although regulations adopted by the Department of Health and Human Services in 2006 included provisions that allowed laboratories to provide EHR donations to physicians under certain conditions, the United States alleged that the Defendant violated those conditions. HHS withdrew those exemptions for laboratories in 2013.
“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources, because those relationships can alter a physician’s judgment about the patient’s true health care needs and drive up health care costs for everybody,” said Assistant Attorney General Joseph H. Hunt of the Justice Department’s Civil Division. “In addition to yielding a substantial recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
“Patients deserve the unfettered, independent judgment of their health care professionals. Offering financial incentives to physicians and medical practices in exchange for referrals undermines citizens’ trust in our health care system,” said U.S. Attorney Maria Chapa Lopez of the Middle District of Florida. “With this settlement, our Civil Division confirms its commitment to our nation’s critical struggle against practices that put public health programs at risk.”
“When health care providers are distracted by suspect financial arrangements, the interests of patients can be cast aside,” said Special Agent in Charge Derrick L. Jackson of HHS OIG. “Our agency, working closely with our law enforcement partners, will continue to protect patients and the federal health care programs that serve them.”
The allegations stem from three lawsuits that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the United States for false claims and share in any recovery. The whistleblowers’ share of the settlement announced today has not yet been determined.
The case was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Tennessee, the U.S. Attorney’s Office for the Middle District of Florida, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. The United States was represented by Justice Department Trial Attorneys David T. Cohen and Jonathan T. Thrope, and Assistant United States Attorneys Christopher C. Sabis and Michael Kenneth. The claims asserted are allegations only, and there has been no determination of liability.
The cases are captioned: United States ex rel. Dorsa v. Miraca Life Sciences, Inc., Case No. 13-cv-1025 (M.D. Tenn.); United States ex rel. LPF, LLC v. Miraca Life Sciences, Inc., et al., 3:16-cv-1355 (M.D. Tenn.); and United State ex rel. Heaphy, et al. v. Miraca Life Sciences, Inc., 3:18-cv-1027 (M.D. Tenn.).
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Pathology Laboratory Agrees to Pay $63.5 Million for Providing Illegal Inducements to Referring PhysiciansRead the Press Release
Tampa, FL – Pathology laboratory company Inform Diagnostics has agreed to pay $63.5 million to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today. Inform Diagnostics, formerly known as Miraca Life Sciences Inc., is headquartered in Irving, Texas, and was a subsidiary of Miraca Holdings Inc., a Japanese company, during the period relevant to the case. In 2017, majority ownership of the company changed, and the company was renamed.
“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources because those relationships can alter a physician’s judgment about the patient’s true health care needs and drive up health care costs for everybody,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “In addition to yielding a substantial recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
The settlement announced today resolves allegations that the company violated the Anti-Kickback Statute and the Stark Law by providing to referring physicians subsidies for electronic health records (EHR) systems and free or discounted technology consulting services. The Anti-Kickback Statute and the Stark Law restrict the financial relationships that health care providers, including laboratories, may have with doctors who refer patients to them. Although regulations adopted by the Department of Health and Human Services (HHS) in 2006 included provisions that allowed laboratories to provide EHR donations to physicians under certain conditions, the United States alleged that the defendant violated those conditions. HHS withdrew those exemptions for laboratories in 2013.
“The wellbeing and needs of the patient should always be a medical provider’s primary considerations,” said U.S. Attorney Don Cochran of the Middle District of Tennessee. “The restrictions imposed by federal statutes exist to prevent improper influence on the parties prescribing and providing medical services, including laboratory tests. We will continue to enforce the laws that protect the integrity of federal health care programs.”
“Patients deserve the unfettered, independent judgment of their health care professionals. Offering financial incentives to physicians and medical practices in exchange for referrals undermines citizens’ trust in our health care system,” said United States Attorney Maria Chapa Lopez of the Middle District of Florida. “With this settlement, our Civil Division confirms its commitment to our nation’s critical struggle against practices that put public health programs at risk.”
“When health care providers are distracted by suspect financial arrangements, the interests of patients can be cast aside,” said Special Agent in Charge Derrick L. Jackson of HHS OIG. “Our agency, working closely with our law enforcement partners, will continue to protect patients and the federal health care programs that serve them.”
The allegations stem from three lawsuits that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the United States for false claims and share in any recovery. The whistleblowers’ share of the settlement announced today has not yet been determined.
The case was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Tennessee, the U.S. Attorney’s Office for the Middle District of Florida, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. The claims asserted against Miraca are allegations only, and there has been no determination of liability.
The cases are captioned: United States ex rel. Dorsa v. Miraca Life Sciences, Inc., Case No. 13-cv-1025 (M.D. Tenn.); United States ex rel. LPF, LLC v. Miraca Life Sciences, Inc., et al., 3:16-cv-1355 (M.D. Tenn.); and United State ex rel. Heaphy, et al. v. Miraca Life Sciences, Inc., 3:18-cv-1027 (M.D. Tenn.).
Operator of Unlicensed Marijuana Distribution Business Pleads Guilty to Maintaining a Drug Involved Premises and Possession of Oxycodone and Marijuana with Intent to DistributeRead the Press Release
The operator of a Rainier Valley marijuana business pleaded guilty today in U.S. District Court in Seattle to two felonies: operating a drug involved premises, and possession of oxycodone and marijuana with intent to distribute, announced U.S. Attorney Brian T. Moran. KELED ALI, 28, of Seattle was arrested in October 2018, following an ATF and Seattle Police Department investigation of drug activity and gang related shootings near ‘One Stop,’ a marijuana distribution business in the 5300 block of Rainier Avenue South. Chief U.S. District Judge Ricardo S. Martinez scheduled sentencing for May 24, 2019.
According to records filed in the case, law enforcement became aware of gang activity related to the marijuana distribution business following a fatal shooting in December 2017 and a drive-by shooting in March 2018. ‘One Stop’ was not a licensed marijuana distributor under state or federal law. When undercover officers sought to investigate activities at the storefront, they were told marijuana could only be sold to customers introduced by other “members of their club.” On March 5, 2018, law enforcement executed a court authorized search warrant at the store. From a safe in the store officers recovered a 9 mm semi-automatic firearm, and they seized more than three pounds of marijuana from the store.
In October 2018, ALI was arrested after law enforcement observed him make numerous drug sales. In ALI’s car law enforcement found more than two pounds of marijuana and 45 oxycodone pills packaged for resale.
Maintaining a drug involved premises, and possession of marijuana and oxycodone with intent to distribute are both punishable by up to 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms &Explosives (ATF) and the Seattle Police Department. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Ohio man charged with attempting to provide material support to ISIS, attempting to commit a hate crime and possessing firearms for plot to attack Toledo-area synagogueRead the Press Release
A federal grand jury returned a three-count indictment charging an Ohio man with attempting to provide material support to ISIS, attempting to commit a hate crime, and possessing firearms in furtherance of a crime a violence stemming from his plan to attack in a synagogue in the Toledo area.
Damon M. Joseph, 21, also known as Abdullah Ali Yusuf, of Holland, Ohio, was arrested in December after he took possession of two semi-automatic rifles.
The announcement was made by Assistant Attorney General for National Security John C. Demers, Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S Attorney Justin E. Herdman for the Northern District of Ohio and Acting Special Agent in Charge Robert E. Hughes of the FBI’s Cleveland Division.
“This man allegedly spent months planning a violent terrorist attack on behalf of ISIS here in the United States, and targeted a Jewish synagogue in the Toledo area specifically because of the faith of the people who worship there,” said U.S. Attorney Herdman. “We will work to identify and arrest anyone who take steps to use violence to spread their ideology and to interfere with the free exercise of our essential rights.”
“In a matter of months, Damon Joseph allegedly progressed from radicalized, virtual jihadist to attack planner,” said Acting Special Agent in Charge Hughes. “He ultimately decided to target two Toledo-area synagogues for a mass-casualty attack in the name of ISIS. Joseph will now be accountable in a court of law for his pursuit of a violent act of terrorism upon our fellow citizens attending their desired house of worship.”
According to documents filed in court, Joseph drew the attention of law enforcement in 2018 by posting photographs of weapons and various messages in support of ISIS on his social media accounts, as well as a photograph originally distributed by the media wing of ISIS. This activity led to multiple interactions between Joseph and undercover FBI agents.
During his communication with undercover agents, Joseph stated his support for ISIS and produced propaganda in support of ISIS recruitment. In September, Joseph made videos that he sent to the undercover agent, hoping they would be used to recruit people to ISIS. He also complained that the mosque he attended was critical of ISIS.
Joseph stated his support for violent attacks and operations. For example, on Oct. 21, 2018,Joseph expressed support for “martyrdom operations” and stated: “what must be done, must be done” and “there are always casualties of war.”
On Oct. 30, Joseph and the undercover communicated regarding the mass shooting at a Jewish synagogue in Pittsburgh. Joseph stated: “I admire what the guy did with the shooting actually.” He added: “I can see myself carrying out this type of operation inshallah. They wouldn[’]t even expect [an attack] in my area...”
Over the next few weeks, Joseph continued stating he wanted to participate in an attack on behalf of ISIS. On Dec. 2 he forwarded a document that laid out his plans for an attack, using the name “Abdullah Ali Yusuf” for himself. In the document, he described plans to attack where the greatest number of people are gathered, inflict the most casualties during the attack and make sure no one escaped.
Joseph then stated that he did not see this necessarily as “a martyrdom operation” as his plan accounted for an escape and potential combat with law enforcement.
On Dec. 4, Joseph stated he was deciding between two synagogues in the area to attack. He stated the choice would depend on “Which one will have [the] most people, what time and what day. Go big or go home.”
The next day, Joseph met with an undercover FBI agent and discussed conducting a mass shooting at a synagogue. Joseph identified two synagogues he viewed as targets in the greater Toledo area, and discussed the types of weapons he believed would be able to inflict mass casualties.
Joseph made written notes about the firearms he wanted and provided them to the undercover agent, stating he wanted AR 15s, AK 47s, Glocks and ammunition.
On Dec. 6, Joseph met with an undercover agent in the Toledo area and stated it would be ideal to attack two synagogues, but that it was probably more realistic to only attack one. Joseph also stated specifically that he wanted to kill a rabbi.
Also on Dec. 6, Joseph wrote the name and address of the synagogue where the attack was to occur. Joseph stated he had conducted research to determine when the Jewish sabbath was so that more people would be present. Joseph pulled up photographs of the inside of the synagogue and said he wanted the attack to begin in the sanctuary. Joseph told the undercover agent that he would hide two semi-automatic rifles at his house once the undercover purchased them.
Later that day, the undercover agent told Joseph that he purchased rifles for the attack. The two met on Dec. 7 at a predetermined location and Joseph took a black duffel bag containing two semi-automatic rifles, which had been rendered inoperable by law enforcement officers so that they posed no danger to the public. Joseph was then arrested.
An indictment is only a charge, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Joint Terrorism Task Force, which is comprised of members of the FBI, Homeland Security and Investigations, U.S. Customs and Border Protection, Ohio State Highway Patrol and Toledo Police Department, is leading the ongoing investigation.
The case is being prosecuted by Assistant U.S. Attorney Michelle Baeppler of the Northern District of Ohio, Trial Attorneys Josh Champagne and Kyle Phillips of the National Security Division’s Counterterrorism Section, and Trial Attorney Dana Mulhauser of the Civil Rights Division.
Multi-Agency Drug Conspiracy Investigation Results in Prison Sentences for Seven Eastern Oklahoma DefendantsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced the sentencing of seven defendants as a result of a multi-agency investigation referred to as “Operation Kryptonite.” They were indicted on February 14, 2018, and were sentenced on various dates from September to December 2018 following their guilty pleas and the completion of pre-sentence reports for each.
Those sentenced were: Bethany Lynn Kendall, age 28, of McAlester; Steven Alan Phifer, age 40, of McAlester; Dylan Joseph Dempsey, age 25, of Fort Smith; Conway Lee Kindle, age 43, of Stuart; Dominic Alan Giaudrone, age 38, of Krebs; Dustin Lee Hall, a/k/a Smalls, age 31, of Savanna; and Angel Reanea Henderson, age 41, of Hartshorne.
Kendall was sentenced on November 21, 2018 to 210 months in prison and five years’ supervised release for Drug Conspiracy and Possession With Intent To Distribute Methamphetamine. Phifer was sentenced on December 6, 2018 to 84 months in prison and five years’ supervised release for Drug Conspiracy and Distribution of Methamphetamine. Dempsey was sentenced on November 15, 2018 to 151 months in prison and five years’ supervised release for Drug Conspiracy and Possession With Intent To Distribute Methamphetamine. Kindle was sentenced on October 16, 2018 to 133 months in prison and five years’ supervised release for Drug Conspiracy and Distribution of Methamphetamine. Giaudrone was sentenced on October 10, 2018 to 12 months in prison and two years’ supervised release for Drug Conspiracy. Hall was sentenced on September 13, 2018 to 120 months in prison and five years’ supervised release for Drug Conspiracy. Henderson was sentenced on September 11, 2018 to 48 months in prison and three years’ supervised release for Distribution of Methamphetamine.
Operation Kryptonite was an investigation initiated in May 2017 by the Drug Enforcement Administration (“DEA”) McAlester Resident Office (“MRO”) based on information received from the McAlester Police Department (“MPD”) and further developed by an MPD Task Force Officer assigned to the DEA MRO. The investigation involved controlled purchases of methamphetamine from Bethany Kendall and other members of the organization who were supplied pound quantities of methamphetamine from a source of supply in the Oklahoma City area. The investigation led to a court ordered intercept of Kendall’s communications. The investigation culminated in the indictment, arrest and successful prosecution of seven federal defendants prosecuted in the Eastern District of Oklahoma and six state defendants prosecuted by the Pittsburg County District Attorney’s Office.
The law enforcement agencies involved in the investigation were the Drug Enforcement Administration, the Oklahoma Bureau of Narcotics, the Bureau of Indian Affairs, the United States Marshal’s Service, the McAlester Police Department, the Pittsburg County Sheriff’s Office, the Seminole Nation Lighthorse Police, the Savanna Police Department, the District 18 Drug and Violent Crimes Task Force, and the U.S. Attorney’s Office. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
“Working with state, local, and tribal agencies to identify, disrupt and dismantle drug trafficking organizations is a priority of the Department of Justice. This investigation reflects that priority and could not have been accomplished without participation from all the agencies involved,” said United States Attorney Brian J. Kuester.
DEA Dallas Field Division Special Agent In Charge Clyde E. Shelley, Jr. said, “It’s a constant effort to keep our communities safe. This investigation was another example of multi-agency efforts in the state of Oklahoma resulting in large quantity seizures of methamphetamine and firearms. Our mission will always be getting the dangerous drugs and weapons off the streets.”
Sheriff Chris Morris said, “It is a constant battle to keep drug dealers off the streets, and it takes agencies working together to help make this happen. The Pittsburg County Sheriff's Office looks forward a continuing work relationship with all agencies. Great job to all involved.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over each of the sentencing hearings. The defendants will remain in custody pending transportation to the designated federal facility at which the non-parolable sentences will be served. Assistant United States Attorney Kristin Harrington represented the United States.
Mullens Family Clinic Doctor Pleads Guilty to Healthcare Fraud SchemeRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced that Dr. Manuel C. Barit, M.D., 71, of Raleigh County, and the only practicing physician at Mullens Family Clinic, pled guilty to executing a long-running healthcare fraud scheme. As part of the plea, Dr. Barit admitted that from about October 7, 2013 through January 24, 2018, he defrauded Medicare and Medicaid by submitting claims indicating that he treated patients at his clinic in Mullens on dates when he was outside the United States. As part of the plea, Dr. Barit agreed permanently surrender his West Virginia medical license as well as his Drug Enforcement Administration registration. By virtue of surrendering his license and registration, Dr. Barit will no longer be permitted to practice medicine or prescribe controlled substances in West Virginia. The Drug Enforcement Administration, the Department of Labor – Office of Inspector General (OIG) and the United States Postal Inspection Service conducted the investigation.
“This is a significant case for a number of reasons,” said United States Attorney Mike Stuart. “Dr. Barit has surrendered his medical license and his DEA registration. As a result, Dr. Barit will never practice medicine and will never write a prescription in West Virginia ever again. The pill pushers and drug dealers in lab coats have wreaked havoc and harm on our good citizens and we shall continue doing everything in our power to hold those responsible accountable.”
Dr. Barit faces up to 10 years in prison and a fine of up to $250,000 when he is sentenced on May 16, 2019. United States District Judge Irene C. Berger is presiding over the case.
This prosecution is the result of the formation of the Opioid Fraud Abuse and Detection Unit (OFADU), a Department of Justice initiative that uses data to identify and prosecute individuals that are contributors to the national opioid crisis. The Southern District of West Virginia is one of 12 districts nationally to participate in the pilot program.
Assistant United States Attorney Haley Bunn is handling the prosecution.
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Montgomery County Man Sentenced to 420 Years in Federal Prison for Production of Videos Documenting His Sexual Abuse of Three Girls Aged Two to Four Years OldRead the Press Release
Greenbelt, Maryland –U.S. District Judge Theodore D. Chuang today sentenced Kyle Stephen Thompson, age 33, of Burtonsville, Maryland, to 420 years in federal prison concurrent to the state sentence to be imposed, and lifetime supervised release for his conviction on 18 counts of production of child pornography, involving videos documenting Thompson’s sexual abuse of three young girls, aged 2 to 4. On September 13, 2018, the federal jury who heard the evidence during his three-day trial returned its guilty verdict on each of the 18 counts after deliberating less than 30 minutes.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
U.S. Attorney Robert K. Hur stated, “Kyle Thompson’s horrific sexual assaults on young girls would not have stopped without the work of the prosecutors, law enforcement agents, and witnesses in this case. Today’s sentence is a result of their efforts and ensures that Thompson will never be able to abuse a child again.”
According to the evidence presented at his trial and at today’s sentencing hearing, from May 9, 2015, to January 28, 2017, Thompson sexually assaulted three young girls, each of whom were between two and four years of age at the time of the abuse, in order to produce visual depictions documenting the abuse. Witnesses testified that on March 17, 2017, law enforcement executed a search warrant at Thompson’s residence and recovered a Secure Digital (SD) memory card hidden in the laundry room. During a preliminary on-scene forensic preview of the SD card, law enforcement saw a video depicting child pornography. According to trial testimony, subsequent forensic analysis of the SD card revealed 18 videos of Thompson sexually abusing the three young girls.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute 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, Montgomery County Police Department, and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Kristi N. O’Malley, Joseph Baldwin, and Kelly O. Hayes, who prosecuted the federal case.
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Mineral County woman admits to drug distribution and firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Erica Lucinda Taylor, of Piedmont, West Virginia, has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
Taylor, age 30, pled guilty to one count of “Aiding and Abetting Distribution of Fentanyl.” Taylor admitted to selling fentanyl in February 2018 in Mineral County.
Taylor faces up to up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Lynn Man Pleads Guilty to Distributing Heroin and FentanylRead the Press Release
BOSTON – A Lynn man pleaded guilty yesterday in federal court in Boston to multiple drug charges associated with his distribution of heroin and fentanyl, which led to the 2017 overdose death of a Melrose resident.
Yeffry Reynoso, a/k/a Chris, 27, pleaded guilty to one count of conspiring to distribute at least 100 grams of heroin and at least 40 grams of fentanyl in 2016 and 2017. Reynoso also pleaded guilty to six counts of distributing heroin or fentanyl on various dates in 2017. U.S. District Judge Nathaniel M. Gorton scheduled sentencing for May 9, 2019.
According to court documents, Reynoso admitted that he sold and directed others to sell on his behalf small, retail quantities (typically approximately .25 to .30 grams in a plastic baggie) of heroin, heroin mixed with fentanyl, and/or fentanyl to numerous individuals in Lynn, Melrose, Saugus, Peabody, Malden, and the surrounding areas. Reynoso admitted that he sold the drugs to his customers on an almost daily basis and that he directed others who worked for him to deliver the drugs. Reynoso further admitted that he sold heroin and heroin mixed with fentanyl to a customer in Melrose after being told by her friend not to do so, and that the customer overdosed and died after using the drugs he provided.
Reynoso faces a mandatory minimum sentence of five years and up to 40 years in prison, supervised release for at least four years and up to life, and a fine of $5 million. Pursuant to the plea agreement, the parties will recommend to the Court a sentence of at least nine years but not more than 14 years in prison. Judge Gorton deferred acceptance of the plea agreement until the sentencing hearing.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. Assistant U.S. Attorney James E. Arnold of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Luzerne County Man Pleads Guilty to Distributing Heroin and FentanylRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey Abney, age 28, of Sugar Notch, Pennsylvania, pleaded guilty on January 10, 2019, before U.S. District Court Judge Malachy E. Mannion to distribution and possession with intent to distribute heroin and fentanyl.
According to United States Attorney David J. Freed, Abney admitted to distributing heroin and fentanyl in July 2018 in Luzerne County. Investigators made a number of purchases of packets containing heroin laced with fentanyl from Abney, and then obtained a search warrant for Abney’s residence in Sugar Notch, where additional amounts of heroin and fentanyl were found.
Judge Mannion ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms, who were assisted by the Kingston Police Department. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is 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 reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is up to 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lowell Man Pleads Guilty to Armed Bank RobberyRead the Press Release
BOSTON - A Lowell man pleaded guilty yesterday in federal court in Boston to a masked and armed bank robbery.
Jason M. Nobles, 37, pleaded guilty to one count of armed bank robbery. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 7, 2019. Nobles is currently in federal custody.
On Feb. 26, 2018, a masked individual, later identified as Nobles, entered a branch of the Santander Bank in Swansea, approached a teller’s station, brandished what appeared to be a black semi-automatic pistol, pointed the pistol at the bank’s tellers and demanded cash. Throughout the robbery, Nobles pointed the weapon at the tellers ordering them to hurry up and threatening to shoot them. The tellers handed Nobles cash from their drawers, and Nobles fled the bank. A post robbery audit determined that Nobles stole approximately $15,000.
Bank employees witnessed Nobles depart the bank, run to a neighboring parking lot, and leave the area in a gray Toyota SUV. The employees were able to provide law enforcement with a vehicle description and the physical description of the robber. Law enforcement across multiple towns worked together to locate the Toyota SUV, stop it, and detain the driver - Nobles - who matched the description of the robber given by the bank’s employees. Later, when law enforcement executed a search of the vehicle, they found a large sum of money and a black Sig Sauer semi-automatic pellet gun.
The charge provides for a sentence of no greater than 25 years in prison and five years of supervised release. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Bristol County District Attorney Thomas M. Quinn; Swansea Police Chief George Arruda; and Rehoboth Police Chief James J. Trombetta made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Lori Isenberg Pleads Guilty to over $570,000 in Wire Fraud and Federal Program TheftRead the Press Release
COEUR D’ALENE – Laurecene (Lori) Barnes Isenberg, 65, of Coeur d’Alene, pleaded guilty yesterday to three counts of wire fraud and one count of theft from a federal program, U.S. Attorney Bart M. Davis announced. Isenberg’s sentencing is set for April 30, 2019, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
According to court records, Isenberg admitted to stealing $579,495.75 from the North Idaho Housing Coalition, an organization that was funded, in part, with grants from the U.S. Department of Housing and Urban Development administered through the Idaho Housing and Finance Association. Isenberg was the Coalition’s executive director when she engaged in a scheme with her four daughters to submit false invoices and expenses to the Coalition for payment. These invoices were often submitted in the names of companies she set up in her daughters’ names. Isenberg provided her daughters with some of the money she took.
Two of Isenberg’s daughters, Amber Hosking, 40, of Spirit Lake, Idaho, and Jessica Barnes, 32, of Spokane Valley, Washington, were sentenced yesterday by Judge Lodge for conspiracy to commit federal program fraud. The criminal charge stemmed from their participation in the wire fraud and federal program theft scheme with Isenberg. Hosking admitted receiving $16,500 from the scheme. Jessica Barnes admitted receiving $15,500 from the scheme. Both women admitted they received money for work they did not do. Judge Lodge sentenced Hosking and Barnes each to three years’ probation and 100 hours of community service. Judge Lodge also ordered Hosking and Barnes to pay $16,500 and $15,500 in restitution, respectively. Their sentencings occurred at the federal courthouse in Coeur d’Alene.
Isenberg’s other two daughters, Tracy Tesch, 34, of Rathdrum, Idaho, and April Barnes, 42, of Coeur d’Alene, pleaded guilty to conspiracy to commit program theft earlier today. That criminal charge stemmed from their participation in the wire fraud and federal program theft scheme with Isenberg. Tesch admitted to receiving approximately $15,300 from the scheme. April Barnes admitted to receiving about $11,500 from the scheme. Sentencing for both Barnes and Tesch is set for May 1, 2019, before Judge Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by the Federal Bureau of Investigation and the Coeur d’Alene City Police Department.
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Local 98 Leader John Dougherty, Philadelphia City Councilman Robert Henon, and Six Others Charged in 116-Count Public Corruption IndictmentRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced today that a grand jury returned a 116-count Indictment, charging Local 98 of the International Brotherhood of Electrical Workers (“Local 98”) Business Manager John Dougherty, Philadelphia City Councilman Robert Henon, Local 98 employees Brian Burrows, Michael Neill, Marita Crawford, Niko Rodriguez, Brian Fiocca, and local business owner Anthony Massa with a multitude of federal crimes, including embezzlement, wire fraud, and public corruption offenses.
John Dougherty, 58, of Philadelphia, has been charged with one count of conspiracy to embezzle from a labor union and employee benefit plan; 34 counts of embezzlement and theft of labor union assets; 23 counts of wire fraud thefts from Local 98; two counts of wire fraud thefts from a political action committee; two counts of falsification of annual financial reports filed by a labor union; two counts of falsification of financial records required to be kept by a labor union; five counts of filing false federal income tax returns; one count of conspiracy to accept unlawful payments from an employer; eight counts of accepting unlawful payments from a union contractor; one count of conspiracy to commit honest services fraud and federal program bribery; 11 counts of honest services wire fraud; and one count of honest services mail fraud.
Philadelphia City Councilman Robert Henon, 50, of Philadelphia, has been charged with one count of conspiracy to commit honest services fraud and federal program bribery; 14 counts of honest services wire fraud; one count of honest services mail fraud; and four counts of federal program bribery.
Brian Burrows, 58, of Mount Laurel, NJ, served as the President of Local 98. He has been charged with one count of conspiracy to embezzle from a labor union and employee benefit plan; 14 counts of embezzlement and theft of labor union assets; two counts of falsification of annual financial reports filed by a labor union; two counts of falsification of financial records required to be kept by a labor union; and five counts of filing false federal income tax returns.
Michael Neill, 52, of Philadelphia, served as the Training Director of Local 98’s Apprentice Training Fund. He has been charged with one count of conspiracy to embezzle from a labor union and employee benefit plan; four counts of embezzlement and theft of labor union assets; one count of theft from an employee benefit plan; and four counts of filing false federal income tax returns.
Marita Crawford, 49, of Philadelphia, served as a Local 98 business agent and Political Director. She has been charged with one count of conspiracy to embezzle from a labor union and employee benefit plan; four counts of embezzlement and theft of labor union assets; three counts of wire fraud thefts from Local 98; two counts of wire fraud thefts from a political action committee; one count of falsification of an annual financial report filed by a labor union; and one count of falsification of financial records required to be kept by a labor union.
Niko Rodriguez, 27, of Philadelphia, was a Local 98 employee and Apprentice Training Fund employee. He has been charged with one count of conspiracy to embezzle from a labor union and employee benefit plan; six counts of embezzlement and theft of labor union assets; and six counts of wire fraud thefts from Local 98.
Brian Fiocca, 27, of Philadelphia, was a Local 98 employee. He has been charged with one count of conspiracy to embezzle from a labor union and employee benefit plan; five counts of embezzlement and theft of labor union assets; and five counts of wire fraud thefts from Local 98.
Anthony Massa, 65, of Philadelphia, was the owner and operator of Massa Construction. He has been charged with one count of conspiracy to embezzle from a labor union and employee benefit plan; 14 counts of embezzlement and theft of labor union assets; one count of theft from an employee benefit plan; and one count of making false statements to the FBI.
From April 2010 through August 2016, in Philadelphia, the Indictment alleges that Dougherty, Burrows, Neill, Crawford, Rodriguez, Fiocca, and Massa conspired and agreed to embezzle Local 98 funds for their own personal use and the use of their family members, friends, and commercial businesses.
The Indictment charges that the defendants used union funds for personal and other unauthorized expenses, contrary to the provisions of the IBEW constitution, the by-laws of Local 98, and the beneficial interests of the members of Local 98. They also used these funds in violation of federal law. The Indictment continues that they used funds and assets of the Apprentice Training Fund for personal and other unauthorized expenses, contrary to the provisions of the Apprentice Training Fund’s trust agreement and ERISA. Additionally, the Indictment states that the defendants concealed the unlawful use of the funds and assets of Local 98 and the Apprentice Training Fund by falsely representing that the funds were being used for legitimate, business-related expenses.
The Indictment further charges Dougherty and Henon with multiple public corruption charges. The Indictment alleges that Dougherty and Henon defrauded the City of Philadelphia and its citizens of the right to Henon’s honest services as a member of City Council. According to the Indictment, Henon received a salary and other things of value from Dougherty and, in exchange, Henon used his position as a member of City Council to serve Dougherty’s interests.
“Union leaders and public officials have similar duties in our society,” said First Assistant U.S. Attorney Williams. “Whether it is a fiduciary duty to the union’s membership to spend union funds on union business, or a public official’s duty to provide honest services to his constituents, leaders in these kinds of roles must act in the best interests of others. They cannot use their public positions and influence to enrich themselves. If they do, it is a violation of their duties and of federal law.”
“When union leaders misdirect the organization’s money for personal gain, they’re breaching their obligation to members – and breaking the law,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Such corruption must not go unchecked. No matter how long it takes, the FBI and our partners will investigate and work to hold accountable unscrupulous union and public officials.”
“Union officials who are elected to positions of trust have a responsibility to their members and organizations,” stated IRS Special Agent in Charge Guy Ficco. “That trust is broken when these officials serve to enrich themselves at the expense of their members. No public official gets a free pass to ignore the tax laws, and IRS CI will continue to ensure that everyone pays their fair share.”
“Investigating corruption and ensuring financial integrity in labor organizations is a major priority for the U.S. Department of Labor’s Office of Labor-Management Standards. We will continue to work with our investigative partners to ensure that those who are affiliated with labor organizations adhere to the highest standards of conduct to protect the assets of union members,” said OLMS Northeastern Regional Director Andriana Vamvakas.
“Protecting the security of retirement, health, and other workplace-related benefits for the American workforce and their families is the objective of the U.S. Department of Labor – Employee Benefits Security Administration (EBSA). Our agency vigorously enforces the laws of the United States by using our criminal enforcement program to pursue violators of criminal laws protecting private employee benefit plans. Our agency works closely with other law enforcement agencies as well as federal and state prosecutors to pursue criminal actors who victimize these plans.” said EBSA Philadelphia Regional Director Michael Schloss.
“An important mission of the Office of Inspector General is to investigate allegations relating to labor racketeering and corruption in employee benefit plans,” stated Richard Deer, Special Agent in Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General. “We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Employee Benefits Security Administration to investigate these types of allegations.”
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Labor Office of Labor Management Standards, the U.S. Department of Labor Office of Inspector General, and the Pennsylvania State Police, with assistance from the Pennsylvania Attorney General’s Office. It is being prosecuted by Assistant United States Attorneys Richard P. Barrett, Chief of the Corruption, Tax and Labor Racketeering Unit, Frank Costello, John Gallagher, and Paul Gray.
An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Libby woman admits tax evasionRead the Press Release
MISSOULA – A Libby woman admitted in federal court today to evading income taxes for two years while she was serving as the financial caretaker for an individual who was unable to care for herself, U.S. Attorney Kurt Alme said.
Candace Cummings, 65, pleaded guilty to tax evasion during a hearing before U.S. Magistrate Judge Jeremiah C. Lynch. Judge Lynch will recommend Cummings’ plea be accepted by U.S. District Judge Dana L. Christensen, who is presiding in the case.
Cummings faces a maximum five years in prison, a $100,000 fine and three years of supervised release. She was released pending sentencing, which was set for May 16.
Prosecutors said the evidence would show that Cummings failed to report income of about $140,188 in 2012, which produced a tax loss of $35,096, and income of about $52,500 in 2013, which produced a tax loss of $13,420.
In late 2011, Cummings agreed to become the financial caretaker for a person who was unable to care for herself. Adult Protective Services assigned a power of attorney to Cummings on the individual’s behalf. APS told Cummings she needed to keep track of receipts for expenses she paid for the individual, and Cummings agreed to serve as a fiduciary without compensation.
In 2012 and 2013, Cummings used the individual’s money for personal expenses and failed to report the money as income on her own tax returns. In one instance, Cummings sold three of the individual’s savings bonds, worth $24,804. She deposited $10,804 into the individual’s account and bought a cashier’s check in her name for $10,000, which she deposited into her own bank account. Cummings received the remaining $4,000 in cash.
Cummings also sold three more savings bonds, worth $16,408. She received a cashier’s check in her name for $6,000, which she later deposited into her bank account, and the remaining $10,408 in cash.
In 2013, after several suspicious transactions involving the individual’s certificates of deposit and savings bonds, the bank contacted APS and local law enforcement. APS revoked Cummings’ power of attorney based on the suspicious activity.
Assistant U.S. Attorney Timothy Racicot is prosecuting case, which was investigated by the IRS’s Criminal Investigation Division.
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Lexington Man Sentenced to 188 Months for Conspiracy to Distribute Cocaine and Money LaunderingRead the Press Release
LEXINGTON, Ky. — Eric D. James, 32, of Lexington, was sentenced yesterday to 188 months in federal prison, by United States District Judge Danny C. Reeves, for conspiracy to distribute more than five kilograms of cocaine and money laundering. Reeves also ordered James to pay a fine of $2,000 and ordered the forfeiture of his interest in $586,369 in cash.
James previously admitted that, in early January 2017, he engaged in a conspiracy to obtain large quantities of cocaine from the southwest United States. Shipments of these drugs were made by passenger vehicle, with the drugs concealed in various compartments within the vehicles. The drugs were then transported to Lexington. The proceeds from the distribution of these drugs were returned to the source. On May 18, 2017, the Lexington Police stopped a vehicle carrying approximately 6 kilograms of cocaine. On June 12, 2017, a search warrant was executed at the residence of James’ co-defendant, Ansar McIver. Law enforcement seized a quantity of cocaine and approximately $586,369, which were proceeds from the drug distribution.
James had previously been convicted of a drug trafficking felony, in Indiana, and Possession of Cocaine, in Kentucky. James was on parole for drug trafficking at the time he committed these offenses. James pleaded guilty in September 2018.
Under federal law, James must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for ten years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James (Robert) Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; Richard Sanders, Commissioner of the Kentucky State Police; and Chief Lawrence Weathers, of Lexington Police Department, jointly made the announcement.
The investigation was conducted by the FBI (Lexington and San Diego), the Kentucky State Police, and the Lexington Police Department. The United States was represented by Assistant United States Attorney Roger W. West.