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19 December 2018
Former Miles City postmaster sentenced in meth conspiracyRead the Press Release
BILLINGS—Stephen Michael Miller, the former postmaster of the U.S. Postal Service Office in Miles City, was sentenced to five years of probation and fined $2,500 today in federal court for his role in a conspiracy to distribute methamphetamine that came through the mail, U.S. Attorney Kurt G. Alme said.
Miller, 59, pleaded guilty earlier to conspiracy to possess with intent to distribute meth.
U.S. District Judge Susan P. Watters presided at sentencing.
An investigation found that between 2013 and August 2015 there was a conspiracy to send meth through the mail for distribution in the Miles City area. Several other defendants have been convicted and sentenced in the case. One of the co-conspirators, James Toms, who received his meth through the post office, was sentenced in April 2018 to 96 months in prison and five years of supervised release for conviction on possession with intent to distribute meth.
Miller, who was the postmaster in Miles City, used his position to warn Toms that the police had been monitoring mail sent to his residence. On one occasion, Miller intercepted for Toms a package that contained about four ounces of meth. Miller delivered the package to Toms in exchange for one ounce of the meth. Four ounces of meth is the equivalent of about 904 individual doses.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the Drug Enforcement Administration, FBI, Eastern Montana High Intensity Drug Trafficking Area Task Force and Miles City Police Department.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Former Mcconnellsburg High School Basketball Coach Sentenced to over Seven Years’ Imprisonment for Child ExploitationRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Former McConnellsburg High School Basketball Coach, Dane Robert Pollock, age 35, of McConnellsburg, Pennsylvania, was sentenced on December 18, 2018, to 86 months’ imprisonment by U.S. District Court Judge Sylvia H. Rambo for receipt and distribution of child pornography. Following Pollock’s seven-year sentence, Judge Rambo imposed a 10-year period of supervised release and a host of strict conditions Pollock must comply with, including having no unsupervised contact with minors under age 18, engaging in no contact with the victims and registering as a sex offender.
According to United States Attorney David J. Freed, Pollock took sexually explicit, nude photographs and videos of at least one female student who was under the age of 18 years of age in 2016. During the investigation, agents identified other minor victims Pollock had exploited between 2011 and 2016, while Pollock was the basketball coach and athletic director.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorney Meredith A. Taylor prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Former Investment Bank Employee Pleads Guilty to Insider Trading SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that WOOJAE JUNG, a/k/a “Steve Jung,” pled guilty today to one of count of securities fraud relating to his scheme to buy stock based on material nonpublic information. JUNG’s plea was taken by U.S. Magistrate Judge Debra Freeman and will be transmitted to U.S. District Judge Lewis A. Kaplan for consideration.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Woojae Jung pled guilty today to using favorable material nonpublic information taken from his investment bank employer in order to generate illicit profits, netting nearly $130,000 in illegal gains. Our Office will continue to fight insider trading and ensure that those who cheat in our financial markets are held to account.”
According to the Information, the allegations in the Complaint, and statements made during the proceedings in Manhattan federal court:
JUNG worked at an investment bank (the “Investment Bank”) that provided, among other services, financing and consulting to clients in connection with mergers, acquisitions, and corporate restructurings. The Investment Bank has offices around the world, including in New York, New York, and San Francisco, California. JUNG was a vice president. In his role as a vice president at the Investment Bank, JUNG had access to, among other materials, electronic files maintained on the Investment Fund’s computer server, including files containing material nonpublic information (“MNPI”) relating to various clients.
JUNG used his position at the Investment Bank to obtain MNPI about a number of the Investment Bank’s clients and then, in multiple instances, JUNG used that MNPI to cause profitable securities trades. In an effort to conceal this illicit trading, JUNG caused these illegal trades to be conducted through a brokerage account held in the name of another person. In contravention of his employer’s rules about outside investment accounts, JUNG accessed, used, and traded in that account repeatedly between in or about 2015 and in or about 2017, including on hundreds of occasions when the account was accessed through IP addresses subscribed in JUNG’s name.
Over the course of the scheme JUNG traded in securities of at least 10 companies based on MNPI and made more than approximately $130,000.
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JUNG, 37, of San Francisco, California, pled guilty to one count of securities fraud, which carries a maximum penalty of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding work of the FBI. He also thanked the Securities and Exchange Commission, which previously filed civil charges against JUNG in a separate action.
The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrew Thomas is in charge of the case.
Former Fayette County Horse Farm Manager Sentenced in Fraud SchemeRead the Press Release
Memphis, TN - Zachary M. Baker, 32, was sentenced to serve 33 months in federal prison in connection with theft of over $800,000 from his former employer. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the sentence today.
Baker entered a guilty plea to a one-count information in August. According to the information, Baker was hired to manage Masterson Farms, a horse breeding farm located in Somerville, Tennessee. Beginning in January 2013, Baker began stealing from Masterson Farms by writing checks payable to himself; Zigadoo Moneyclips, a band he managed; and another individual identified as "E.L.M." According to the information, Baker also stole funds by making online payments on his personal credit card accounts with funds transferred from the Masterson Farms bank accounts. Between January 2013, and April 9, 2018, the information alleged that Baker stole over $810,000.
On Wednesday, December 19, 2018, U.S. District Court Judge John T. Fowlkes Jr., sentenced Baker to 33 months in federal prison. In addition, Baker was sentenced to two years supervised release and ordered to pay restitution to Masterson Farms, Capital One and Sedgwick in the total amount of $838,010.58.
U.S. Attorney D. Michael Dunavant said, "Financial fraud can happen anywhere, and can be devastating to local businesses. The defendant used his position of trust and authority to steal proceeds for his own personal benefit and unjust enrichment, and his dishonesty has been exposed. Wherever fraud occurs in the Western District of Tennessee, this office will be prepared to hold offenders accountable."
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Carroll L. André III, prosecuted this case on the government’s behalf.
Former Clinton Woman Sentenced to Prison for Social Security FraudRead the Press Release
DAVENPORT, IA – On December 17, 2018, Shantae Daane Salther, age 40, formerly of Clinton, was sentenced by United States District Court Chief Judge John A. Jarvey to 12 months and one day of imprisonment, after being found guilty of False Statements, announced United States Attorney Marc Krickbaum. Salther was ordered to serve a period of supervised release of three years and a $100 special assessment payable to the Crime Victims’ Fund.
Salther was found guilty by a jury on August 3, 2018. Salther alleged disability as of July 1, 2014, due to several issues including a traumatic brain injury and complications from a motorcycle accident. When applying for disability benefits through the Social Security Administration, Salther alleged functional limitations specifically, that she could not drive and could not go out of the house alone. As a result of her application, Salther was evaluated by a psychologist who stated she was malingering and she had presented false information. In addition, the investigation revealed Salther lied about her functional information. Evidence presented at trial revealed Salther was able drive and go out of the house alone.
This matter was investigated by the Social Security Administration Office of Inspector General and the State of Iowa Department of Inspections and Appeals. This case was prosecuted by the United States Attorney’s Office-Southern District of Iowa.
Former City Commissioner Heads to Prison for Health Insurance Fraud SchemeRead the Press Release
McALLEN, Texas ‐ A former Pharr City Commissioner has been ordered to prison in connection with a scheme to defraud Blue Cross Blue Shield of Texas, announced U.S. Attorney Ryan K. Patrick. Oscar Elizondo, 48, of Pharr, pleaded guilty to conspiracy to commit health care fraud Nov. 29, 2017.
Elizondo was charged with conspiring with the owner of Penitas Family Pharmacy aka Riverside Pharmacy, located in Penitas, to submit more than $1.7 million in fraudulent claims to Blue Cross Blue Shield of Texas (BCBS) for expensive pain patches and scar creams.
Today, U.S. District Judge Randy Crane imposed a 22-month prison sentence to be followed by a three-year term of supervised release. Elizondo was also ordered to pay more than $1.4 million in restitution to BCBS, the amount they paid based on the fraudulent claims.
In handing down the sentence, Judge Crane characterized the scheme as “blatant fraud” and a “complete ruse.” Crane further noted that although the fraudulent claims were submitted to BCBS, the scheme also defrauded local school districts, municipalities and small businesses, who had self-funded health insurance programs through BCBS.
Co-defendant Omar Espericueta, 46, of Palmhurst, pleaded guilty Dec. 1, 2017, and is set for sentencing in May 2019.
During an approximately five-month period starting in late 2015, Elizondo and his co-conspirators recruited marketers to target employees of entities throughout the Rio Grande Valley with BCBS insurance. The marketers solicited employees with meals, drinks and promises of “free” prescription pain patches and scar creams in order to obtain their health insurance information. The co-conspirators then used the insurance information, along with fraudulent prescriptions, to submit hundreds of fraudulent and medically unnecessary claims to BCBS. Prescriptions were written for individuals who never saw a doctor and did not want or need pain patches or scar creams. Other individuals were taken to a doctor, but it was a doctor with whom Elizondo and his co-conspirators had made arrangements to sign fraudulent prescriptions in exchange for cash, fake loans and prescription pain killers.
Employees who were targeted in the scheme were falsely told that the prescription medication was “free,” when in reality Penitas Pharmacy planned to use their health insurance information to bill BCBS for several thousand dollars worth of prescriptions for each employee. In many instances, the defendants billed BCBS for prescriptions that were never delivered to employees, including multiple refills that were never requested.
Elizondo was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Mission Police Department, Texas Department of Insurance – Fraud Unit and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.
Former CFO at Long Island Mortgage Lender Sentenced to 18 Months’ Imprisonment for FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Edward Sypher, Jr., formerly the Chief Financial Officer of Long Island mortgage lender Vanguard Funding, LLC (Vanguard), was sentenced by United States District Judge Sandra J. Feuerstein to 18 months’ imprisonment to be followed by three years’ supervised release. The amount of restitution will be determined by the Court at a later date. Sypher was also ordered to pay $22,150.45 in forfeiture. In February 2018, Sypher pleaded guilty to conspiring to commit wire and bank fraud in connection with the diversion of warehouse loans that Vanguard had fraudulently obtained purportedly to fund home mortgages and mortgage refinancing.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Maria T. Vullo, Superintendent, New York State Department of Financial Services (DFS), announced the sentence.
“Edward Sypher, Jr., has been punished for deceiving his banking partners in order to divert millions of dollars to his own benefit and that of other Vanguard executives,” stated United States Attorney Donoghue. “This Office, working hand-in-hand with our law enforcement partners, will continue to vigorously investigate and prosecute business executives who choose to commit fraud as a means of getting ahead at the expense of the businesses and residents of our district.”
“When fraudsters treat investors like their own personal ATMs, using funds invested in good faith to line their own pockets, pay for personal expenses, and repay other fraudulent loans, confidence in the integrity of our financial systems suffers,” stated FBI Assistant-Director-in-Charge Sweeney. “Thanks to the diligent work of the FBI and our partners, Sypher will be held accountable for his crimes.”
“DFS is proud to have worked with the U.S. Attorney’s office and other law enforcement partners to bring this defendant to justice,” said DFS Superintendent Vullo. “We will continue to combat the serious issue of fraud in order to safeguard the industry and protect consumers.”
Vanguard was a 33-branch, mortgage lending institution licensed in California, Connecticut, Florida, Georgia, Maryland, Massachusetts, North Carolina, New Jersey, New York, Pennsylvania and Washington. Between August 2015 and March 2017, Sypher and his co-conspirators at Vanguard engaged in a multi-million dollar fraud scheme by falsely representing that the loan proceeds would fund specific mortgages, or refinance specific mortgages, for Vanguard clients. Instead, Sypher and his co-conspirators diverted the funds to pay personal expenses and compensation, and to pay off loans they had previously obtained through fraudulent loan applications.
On December 10, 2018, Matthew T. Voss, Vanguard’s former Chief Operating Officer, was sentenced to 24 months’ imprisonment for his role in the scheme.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Whitman G.S. Knapp and Elizabeth Losey Macchiaverna are in charge of the prosecution.
The Defendant:
EDWARD SYPHER, JR.
Age: 41
Scarsdale, New YorkE.D.N.Y. Docket No. 18-CR-028 (SJF)
Former Blackwater Employee Found Guilty of Murder in Fatal 2007 Shooting at Nisur Square in IraqRead the Press Release
WASHINGTON - Nicholas Slatten, 35, a former security guard for Blackwater USA, was found guilty today of the federal offense of first-degree murder in the killing of Ahmed Haithem Ahmed Al Rubia’y, one of 14 unarmed civilians who were killed in a shooting by Blackwater guards that took place at Nisur Square in Bagdhad on Sept. 16, 2007.
The jury verdict, in the U.S. District Court for the District of Columbia, was announced by Jessie K. Liu, U.S. Attorney for the District of Columbia, and Matthew J. DeSarno, Special Agent in Charge of the FBI’sWashington Field Office’s Criminal Division.
Slatten remains held pending his sentencing by the Honorable Royce C. Lamberth. No sentencing date was set. The murder charge calls for a mandatory sentence of life in prison.
Slatten, formerly of Sparta, Tenn., initially was found guilty of the murder charge in October 2014, following a trial in the same courtroom. Three other former guards for Blackwater USA also were found guilty in that trial, of voluntary manslaughter, attempted manslaughter, and other charges. Slatten subsequently was sentenced in April 2015 to a mandatory term of life in prison without parole; the co-defendants were each sentenced to 30 years and one day in prison.
The defendants appealed the convictions. In August 2017, the District of Columbia Circuit of the U.S. Court of Appeals reversed Slatten’s conviction. The appeals court also ordered Slatten’s three co-defendants -- Paul Alvin Slough, Evan Shawn Liberty, and Dustin Laurent Heard -- to be re-sentenced for their roles in the crime. Slough, Liberty and Heard remain in custody and their re-sentencing proceedings remain pending before Judge Lamberth.
Slatten initially was retried on the murder charge last summer but a mistrial was declared on Sept. 5, 2018, after that jury was unable to reach a verdict. The current trial began on Nov. 5, 2018, and the jury reached the guilty verdict on its fifth day of deliberations.
During the trial, the government presented testimony from 34 witnesses, including four who came to the United States to testify from Iraq.
According to the government’s evidence, at approximately noon on Sunday, Sept. 16, 2007, several Blackwater security contractors, including Slatten and his former co-defendants, opened fire in and around Nisur Square, a busy traffic circle in the heart of Baghdad.
When they stopped shooting, 14 Iraqi civilians were dead. Those killed included 10 men, two women, and two boys, ages 9 and 11. Another 18 victims were injured. According to the evidence, Slatten was the first to fire, without provocation, killing Ahmed Haithem Ahmed Al Rubia’y, an aspiring doctor, who was driving his mother to an appointment.
Slatten was among 19 Blackwater security contractors assigned to a convoy of four heavily-armed trucks known as a Tactical Support Team, using the call sign “Raven 23.” Shortly before noon, Raven 23 learned that a car bomb had detonated in central Baghdad near a location where a U.S official was being escorted by a Blackwater personal security detail team. Raven 23 team members promptly reported to their convoy vehicles, and the convoy drove to a secured checkpoint between the Green Zone and Red Zone.
Once there, in disregard of an order from Blackwater’s command, the team’s shift leader directed Raven 23 to leave the Green Zone and establish a blockade in Nisur Square, a busy traffic circle that was immediately adjacent to the Green Zone. All told, seven of the 19 members of Raven 23 fired their weapons.
This case was investigated by the FBI’s Washington Field Office. The Iraqi Ministry of Interior and the Iraqi National Police provided cooperation and assistance in the investigation.
The retrial of the case was prosecuted by Assistant U.S. Attorneys T. Patrick Martin, Fernando Campoamor-Sanchez, and Karen Seifert, and Special Assistant U.S. Attorney Alexandra Hughes, all of the U.S. Attorney's Office for the District of Columbia.
Five Men Indicted for Armed Robberies of Kay Jewelers and Firearm ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that a Federal grand jury in Raleigh has returned a five-count indictment charging CHARLES ANTHONY WALKER, JR., age 53, of High Point, North Carolina, CHRISTOPHER WELLINGTON BROWN, age 48, of Chapel Hill, North Carolina, MALIK SHAWN MAYNARD, age 48, of Durham, North Carolina, BYRON JACOBEE SPARKS, age 25, of Greensboro, North Carolina, and JOEY WAYNE CHAMBERS, age 23, of High Point, North Carolina, with various offenses in relation to the armed robberies of Kay Jewelers in Elizabeth City and Garner, North Carolina.
The indictment alleges that the defendants conspired to rob the Kay Jewelers located on Conlon Way in Elizabeth City to take place on July 28, 2018, as well as the Kay Jewelers located on Eagle Wing Way in Garner on October 11, 2018. During the robberies of both Kay Jewelers locations, BROWN and MAYNARD brandished firearms and were aided and abetted by WALKER.
If convicted of these charges, WALKER, BROWN, and MAYNARD, each face a sentence not less than 32 years’ imprisonment and not more than 5 years supervised release, while CHAMBERS and SPARKS face up to 20 years’ imprisonment and not more than 3 years supervised release.
The charges and allegations contained in the Indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
This case is part of the Take Back North Carolina Initiative, a strategy implemented by United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case is being investigated by the Federal Bureau of Investigation (FBI), the Elizabeth City Police Department, the Garner Police Department, and the Greensboro Police Department. Assistant United States Attorneys Robert J. Dodson and Daniel William Smith are prosecuting the case for the government.
Five KC-Area Residents Charged in Drug-Trafficking Conspiracy After Officers Seized 25 Pounds of MethRead the Press Release
KANSAS CITY, Mo. – Five Kansas City, Mo., area residents were charged in federal court today for their roles in a drug-trafficking conspiracy after law enforcement officers seized approximately 25 pounds of methamphetamine during an undercover operation.
Alfredo Soto-Contreras, also known as “Antonio,” 34, Omar Eliseo Barraza-Bueno, also known as “Shell,” 31, Rey Moreno-Chepe, also known as “Chepe,” 24, Daniel Calderon-Vargas, 29, and Nayeli Fuentes-Verdugo, 30, were charged in a two-count complaint filed in the U.S. District Court in Kansas City, Mo. They remain in federal custody pending a detention hearing, which has not yet been scheduled.
The federal criminal complaint charges each of the five defendants with participating in a conspiracy to distribute methamphetamine from May 17 to Dec. 18, 2018.
In addition to the conspiracy, four of the defendants – Barraza-Bueno, Moreno-Chepe, Calderon-Vargas and Fuentes-Verdugo – are charged together in one count of aiding and abetting each other to possess methamphetamine with the intent to distribute. They were arrested on Tuesday, Dec. 17, 2018, when they met with an undercover federal law enforcement agent to deliver approximately 25 pounds (more than 11 kilograms) of methamphetamine.
According to an affidavit filed in support of the federal criminal complaint, the defendants are part of an armed drug-trafficking organization that federal agents have been investigating in the Kansas City, Mo., metropolitan area. During the investigation, an undercover agent has purchased 14 firearms and approximately three kilograms of methamphetamine.
The affidavit cites several transactions in which Soto-Garcia and Barraza-Bueno sold firearms (some of which were stolen) and methamphetamine to the undercover officer.
Barraza-Bueno allegedly met with the undercover officer on Oct. 3, 2018, and discussed the purchase of large quantities of methamphetamine. Barraza-Bueno told the undercover officer that he purchases 80 pounds of methamphetamine every month or 20 pounds every week. During the discussion, the affidavit says, Barraza-Bueno agreed to sell the undercover officer 100 pounds of methamphetamine for $270,000. On Dec. 10, 2018, Barraza-Bueno told the undercover officer that he had 40 pounds of methamphetamine and could obtain an additional quantity to conduct the delivery on Dec. 18, 2018. When they met the undercover officer for the transaction on that day, Barraza-Bueno, Moreno-Chepe, Calderon-Vargas and Fuentes-Verdugo were arrested by federal agents.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration.
Five Defendants Indicted for $770,000 Drug-Trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Five defendants, including four from the Kansas City, Mo., metropolitan area, have been indicted for their roles in a $770,000 drug-trafficking conspiracy.
David Brian Greiner, also known as “Abel,” 54, Stephanie Marie Marquez, 46, and Howard Tyrone Neely, 36, all of Kansas City, Mo., Cathy Lynn Clark-Walskie, 43, of Kansas City, Kan.; and Tyree Laron West, also known as “Mad Max,” “Dirty,” “Chipper,” and “Hitman,” 40, of Houston, Texas; were charged in a five-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, Dec. 12, 2018. That indictment was unsealed and made public yesterday upon the arrests of Greiner and Marquez.
The federal indictment alleges that Greiner, Marquez, Neely, Clark-Walskie and West participated in a conspiracy to distribute heroin, PCP, methamphetamine and crack cocaine from Jan. 1, 2016, to Dec. 12, 2018. According to the indictment, they obtained approximately $770,000 in exchange for the unlawful distribution of more than 45 kilograms of methamphetamine at $6,000 a pound, 24 gallons of PCP at $300 an ounce, 25 ounces of heroin at $1,200 an ounce and 11 ounces of crack cocaine at $100 a gram.
Greiner, Marquez, Neely and West are also charged together in one count of possessing and using firearms in furtherance of violent crimes and drug-trafficking crimes. They allegedly were in possession of a loaded Berretta .40-caliber semi-automatic handgun, a CZ 75 .40-caliber semi-automatic pistol with magazine and ammunition, a Glock .40-caliber semi-automatic pistol with magazine and ammunition, a Heritage .22-caliber revolver and ammunition, and a Remington sawed-off shotgun.
Greiner, Neely and West are also charged together in one count of being felons in possession of firearms and ammunition.
The federal indictment alleges that Greiner, Marquez, Neely, Clark-Walskie and West participated in a money-laundering conspiracy to use drug sale proceeds to promote the drug-trafficking conspiracy and to conceal drug sale proceeds of that drug trafficking conspiracy.
The indictment also contains a forfeiture allegation, which would require all five co-defendants to forfeit to the government any property derived from the proceeds of the alleged offenses, including a money judgment of $770,000.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Federal Jury Convicts Defendant of Witness Tampering by Threat of DeathRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury has found William Raymond Beach (40, Tampa) guilty of tampering with a federal witness by threat of death. Beach faces a maximum penalty of 20 years in federal prison. His sentencing hearing is scheduled for March 1, 2019.
Beach was indicted on June 21, 2018.
According to testimony and evidence presented at trial, Beach tampered with a key witness in a federal investigation and prosecution involving a fentanyl overdose death. After Beach was told that the witness had met with “a federal attorney” and was a witness in the case, Beach informed the witness that, if the witness continued to assist the United States, he would shoot and kill the witness. In other conversations, Beach described a desire to shoot a law enforcement officer and then flee to another state, and to commit other acts of violence, including violence directed at the witness.
This case was investigated by the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.
Federal Inmate Hit with More Time for Prison AssaultRead the Press Release
Federal inmate Michael Griesinger, 24, has been sentenced to serve 46 additional months in prison for assaulting and seriously injuring another inmate, United States Attorney Steven D. Weinhoeft announced today. The assault occurred in November 2017, when both Griesinger and the victim, identified only as J.B. in court records, were incarcerated at the Federal Correctional Institution in Greenville, Illinois. Griesinger pleaded guilty to the charge earlier this year.
During the proceedings, the district court heard evidence that Griesinger became upset because J.B. was watching TV on a particular television. Griesinger struck J.B. with his fists, and other inmates rushed in, resulting in a multiple inmate brawl. Correctional officers were able to break up the fight by spraying a mace-like substance. J.B. emerged with a broken jaw. No other inmate suffered any serious injuries.
Griesinger was serving time for knowingly possessing a firearm with an obliterated serial number. His 46-month sentence was ordered to run consecutively to the sentence he is currently serving on that charge. Griesinger is now projected for release in early 2021.
The case was investigated by the Bureau of Prisons’ Special Investigations Section. The case was prosecuted by Assistant United States Attorney Angela Scott.
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Sherri A. Lydon announced today that a Federal Grand Jury in Florence, South Carolina, returned Indictments against the following:
Horry and Dillon County Men Indicted for Illegal Reentry into the United States After Deportation. Luis Fernando Roldan-Quiroz of Horry County, South Carolina, and Wilfredo Alcantara-Garcia of Dillon County, South Carolina, were each charged in a single-count indictment with illegal reentry into the United States after deportation. The maximum penalty Roldan-Quiroz and Alcantara-Garcia could receive is ten years in federal prison. These cases were investigated by Immigration and Customs Enforcement – Enforcement and Removal Operations and are assigned to Assistant United States Attorney A. Bradley Parham of the Florence Office for prosecution.
Florence Woman Indicted for Embezzling Money from the Social Security Administration, Using a Computer to Commit Fraud, and Aggravated Identity Theft. Kianna Parrott of Florence, South Carolina, was charged in a 4-count indictment with embezzling money from the Social Security Administration, using a computer to commit fraud, and aggravated identity theft. The maximum penalty Parrott could receive is 10 years in federal prison. The case was investigated by the Social Security Administration – Office of Inspector General and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence Office for prosecution.
Horry County Man Indicted for Being a Felon in Possession of a Firearm. Tony Dewayne Rollins of Horry County, South Carolina, was charged in a single-count indictment with illegal possession of a firearm by a person convicted of a felony. The maximum penalty Rollins could receive is 10 years in federal prison. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is assigned to Assistant United States Attorney Justin W. Holloway of the Florence Office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Farmington Man Sentenced for Sex Trafficking and Child PornographyRead the Press Release
Nakia Phillips, 39, of Farmington, Missouri, was sentenced today to 22 years in prison for sex trafficking crimes. He appeared in federal court this morning before U.S. District Court Judge Ronnie White.
According to court documents, Phillips admitted he forced the girl into prostitution in St. Louis in 2016. He also forced her to perform sex acts on him and filmed them with his cellphone. Farmington police were called when the teen reported the rapes to the staff of a hospital.
Phillips has prior convictions for statutory rape and sodomy in St. Louis County and a 2012 federal conviction for failing to register as a sex offender. He violated his probation in both cases.
Phillips pled guilty in September to three counts of possession of child pornography.
“I commend the victim in this case, who appeared in Court today and showed incredible bravery and dignity as she offered an impact statement during the sentencing hearing. It is impossible to understand what she was put through as a child, by this Defendant,” said U.S. Attorney Jeff Jensen.
The case was investigated by the Federal Bureau of Investigation and the Farmington Police Department. AUSA Colleen Lang handled the case for the United States Attorney’s Office.
False Liens Yield 30-Month SentenceRead the Press Release
PHOENIX – On Dec. 17, 2018, David John Dziedzic, 55, of Scottsdale, Ariz., was sentenced by U.S. District Judge David G. Campbell to 30 months’ imprisonment for his lead role in criminal activity related to the short sale of distressed mortgages, some of which were federally-insured. Dziedzic had previously pleaded guilty to one count of communication of unregistered securities, and a separate count involving the failure to notify the Treasury Department of his collection of more than $10,000 in cash from a real estate customer.
Dziedzic operated the “Housing Angels” program through his company, Real Core Realty, LLC. He aggressively marketed a program designed to help homeowners stay in their homes following a short sale, through an undisclosed sale-leaseback program with “angel” investors. Through this program, he typically received commissions from both the buyer and the seller in a short sale transaction. Dziedzic also recorded false secondary liens on more than 100 short sale properties to induce banks holding primary mortgages to pay off the false secondary mortgages, resulting in more than $100,000 in illegal profits as a result of the scheme.
As part of the sentence, Dziedzic must give up his real estate license. He paid $107,280 in restitution for the actual loss caused when 40 banks paid out on the false liens, and he was also ordered to pay a money judgment of $142,000 over time, in order to disgorge additional profits. As part of the plea agreement, Dziedzic, a Canadian national who naturalized as a U.S. citizen during the investigation, agreed to cooperate in his denaturalization, because he had failed to disclose the existence of the investigation to U.S. Citizenship and Immigration Services during the naturalization process.
Dziedzic’s wife, Heather Hamilton Dziedzic, 43, pleaded guilty to a related misdemeanor charge, and was also sentenced for her role in the offense. She will also surrender her real estate license. She received a two-year term of probation and a deferred disposition on a felony securities charge, which may be dismissed upon successful completion of the probationary term.
The investigation in this case was conducted by Internal Revenue Service – Criminal Investigation; the Department of Housing and Urban Development, Office of Inspector General; the Federal Housing Finance Agency, Office of Inspector General; and the Federal Bureau of Investigation. The prosecution was handled by Gary M. Restaino and Monica B. Klapper, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-18-1080-PHX-DGC
RELEASE NUMBER: 2017-171_Dziedzic
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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.
Ellwood City Man Pleads Guilty to Distributing CocaineRead the Press Release
PITTSBURGH - A resident of Ellwood City, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Dylan Main, 22, of Ellwood City, Pennsylvania, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on May 31, 2018, Main distributed and possessed with intent to distribute less than 50 grams of cocaine, a Schedule II controlled substance.
Judge Schwab scheduled sentencing for May 29, 2019 at 9:30 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation that led to the prosecution of Dylan Main. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Ellwood City Man Pleads Guilty in Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH - A resident of Ellwood City, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Anthony Washington, Jr., 26, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that from in and around 2017, and continuing thereafter to in and around May 2018, Washington conspired with others to distribute and possess with intent to distribute less than 50 grams of cocaine, a Schedule II controlled substance.
Judge Schwab scheduled sentencing for May 30, 2019 at 11 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation that led to the prosecution of Anthony Washington. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Eight Dallas-Area Pharmacy Owners and Marketers Charged in $9 Million Kickback SchemeRead the Press Release
Eight Dallas-area pharmacy owners and marketers were charged in an indictment unsealed today for their roles in a scheme involving approximately $92 million in compound drug claims to TRICARE and the U.S. Department of Labor (DOL), which were allegedly the product of over $9.1 million in illegal kickbacks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service (DCIS) Southwest Field Office, Special Agent in Charge Steven Grell of the U.S. Department of Labor - Office of Inspector General’s (DOL-OIG) Dallas Region and Special Agent in Charge CJ Porter of the Office of Inspector General for the U.S. Department of Health and Services (HHS-OIG) made the announcement.
Richard Hall, 48; Scott Schuster, 47; Dustin Rall, 43; George Lock Paret, 34; and Michael Ranelle, 49, all of Fort Worth, Texas; John Le, 43, of Dallas; Quintan Cockerell, 37, of Manhattan Beach, California; and Turner Luke Zeutzius, 36, of Horseshoe Bay, Texas, were each charged in an indictment filed Dec. 12 in the Northern District of Texas with one count of conspiracy to defraud the United States and pay and receive kickbacks. Hall, Schuster, Rall, and Le were each additionally charged with four counts of paying kickbacks. Zeutzius was additionally charged with two counts of receiving kickbacks and Ranelle and Cockerell were each charged with one count of receiving kickbacks. Hall, Schuster, Rall, Le and Ranelle were arrested yesterday and had their initial court appearances before U.S. Magistrate Court Judge Irma C. Ramirez in Dallas. Paret, Cockerell and Zeutzius self-surrendered this morning and will have their initial court appearances today at 2 p.m. CST before Judge Ramirez.
According to the indictment, from May 2014 to September 2016, Hall, Schuster, Rall, Paret, Le and their co-conspirators allegedly engaged in a scheme to pay kickbacks and bribes for the referral of TRICARE and DOL beneficiaries to obtain expensive compound drugs. Hall, Shuster and Rall were co-owners of Rxpress Pharmacy and Xpress Compounding, compound pharmacies located at 1000 W. Weatherford St. in Fort Worth.
As alleged in the indictment, Rxpress and Xpress were separate in name only; Rxpress Pharmacy and Xpress Compounding employed the same staff, operated out of the same building, and utilized a call center to direct prescriptions depending on whether the prescriptions were for private or federal insurance. The indictment alleges that both companies utilized the same marketers but paid them differently depending on whether they were receiving a commission on a federal or private prescription, in order to disguise the illegal kickback payments on federal prescriptions. Specifically, Hall, Schuster, Rall, Paret and Le allegedly devised a scheme to make kickback payments to marketers through Xpress Compounding for the referral of federal prescriptions. These marketers were allegedly set up as sham “W-2” employees to appear as though they were bona fide employees of Xpress Compounding. At the same time, these marketers were paid as 1099 contractors by Rxpress Pharmacy, the indictment alleges.
The indictment alleges that as a result of the scheme, Zeutzius was paid approximately $4.4 million, Cockerell (through an unnamed person) was paid approximately $2.1 million, and Ranelle was paid approximately $2.6 million in illegal kickbacks, for a total of approximately $9.1 million in illegal kickbacks.
The charges in the indictment are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DCIS, DOL-OIG, the U.S. Department of Health and Human Services Office of Inspector General, the FBI and the U.S. Department of Veterans Affairs Office of Inspector General investigated the case. Assistant Chief Adrienne Frazior and Trial Attorney Brynn Schiess of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and the U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Eight Dallas-Area Pharmacy Owners and Marketers Charged in $9 Million Kickback SchemeRead the Press Release
Eight Dallas, Texas-area pharmacy owners and marketers were charged in an indictment unsealed today for their roles in a scheme involving approximately $92 million in compound drug claims to TRICARE and the U.S. Department of Labor (DOL), which were allegedly the product of over $9.1 million in illegal kickbacks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service (DCIS) Southwest Field Office, Special Agent in Charge Steven Grell of the U.S. Department of Labor - Office of Inspector General’s (DOL-OIG) Dallas Region and Special Agent in Charge CJ Porter of the Office of Inspector General for the U.S. Department of Health and Services (HHS-OIG) made the announcement.
Richard Hall, 48; Scott Schuster, 47; Dustin Rall, 43; George Lock Paret, 34; and Michael Ranelle, 49, all of Fort Worth, Texas; John Le, 43, of Dallas; Quintan Cockerell, 37, of Manhattan Beach, California; and Turner Luke Zeutzius, 36, of Horseshoe Bay, Texas, were each charged in an indictment filed Dec. 12 in the Northern District of Texas with one count of conspiracy to defraud the United States and pay and receive kickbacks. Hall, Schuster, Rall, and Le were each additionally charged with four counts of paying kickbacks. Zeutzius was additionally charged with two counts of receiving kickbacks and Ranelle and Cockerell were each charged with one count of receiving kickbacks. Hall, Schuster, Rall, Le and Ranelle were arrested yesterday and had their initial court appearances before U.S. Magistrate Judge Irma C. Ramirez in Dallas. Paret, Cockerell and Zeutzius self-surrendered this morning and will have their initial court appearances today at 2 p.m. CST before Judge Ramirez.
According to the indictment, from May 2014 to September 2016, Hall, Schuster, Rall, Paret, Le and their co-conspirators allegedly engaged in a scheme to pay kickbacks and bribes for the referral of TRICARE and DOL beneficiaries to obtain expensive compound drugs. Hall, Shuster and Rall were co-owners of Rxpress Pharmacy and Xpress Compounding, compound pharmacies located at 1000 W. Weatherford St. in Fort Worth.
As alleged in the indictment, Rxpress and Xpress were separate in name only; Rxpress Pharmacy and Xpress Compounding employed the same staff, operated out of the same building, and utilized a call center to direct prescriptions depending on whether the prescriptions were for private or federal insurance. The indictment alleges that both companies utilized the same marketers but paid them differently depending on whether they were receiving a commission on a federal or private prescription, in order to disguise the illegal kickback payments on federal prescriptions. Specifically, Hall, Schuster, Rall, Paret and Le allegedly devised a scheme to make kickback payments to marketers through Xpress Compounding for the referral of federal prescriptions. These marketers were allegedly set up as sham “W-2” employees to appear as though they were bona fide employees of Xpress Compounding. At the same time, these marketers were paid as 1099 contractors by Rxpress Pharmacy, the indictment alleges.
The indictment alleges that as a result of the scheme, Zeutzius was paid approximately $4.4 million, Cockerell (through an unnamed person) was paid approximately $2.1 million, and Ranelle was paid approximately $2.6 million in illegal kickbacks, for a total of approximately $9.1 million in illegal kickbacks.
The charges in the indictment are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DCIS, DOL-OIG, the U.S. Department of Health and Human Services Office of Inspector General, the FBI and the U.S. Department of Veterans Affairs Office of Inspector General investigated the case. Assistant Chief Adrienne Frazior and Trial Attorney Brynn Schiess of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and the U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Eau Claire Man Sentenced to 11 Years on Methamphetamine ChargeRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Steven Gwiazda, 38, Eau Claire, Wisconsin, was sentenced yesterday by U.S. District Judge William Conley to 11 years in federal prison for possessing methamphetamine with intent to distribute. Gwiazda pleaded guilty to this charge on September 28, 2018.
On March 29, 2018, Gwiazda was arrested in Eau Claire on an outstanding warrant. Following his arrest, law enforcement officers searched Gwiazda’s vehicle and found 11 separate bags containing a total of 171 grams of methamphetamine.
At the sentencing hearing, Judge Conley found that Gwiazda was a danger to society based on his lengthy criminal history, which included six prior felony convictions. Judge Conley also noted that Gwiazda was on probation from a prior felony drug conviction at the time of his arrest in Eau Claire.
The charge against Gwiazda was the result of an investigation conducted by the West Central Drug Task Force, the Eau Claire Police Department, the Eau Claire County District Attorney’s Office, and the Drug Enforcement Administration. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Drug Courier Sentenced to Serve a Prison Term of 37 Months for His Role in a Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States Senior District Court Judge Callie V.S. Granade sentenced Jose Francisco Esparza-Arevalo on December 12, 2018 to serve a term of imprisonment of 37 months, in addition to time already served, followed by 3 years of supervised release for Conspiracy to Possess with the Intent to Distribute Methamphetamine in violation of 21 USC § 846. The defendant’s guilty plea was accepted by the Court on August 22, 2018.
On March 15, 2018, the defendant was stopped in a traffic stop on Interstate 65 in Saraland, Alabama. The traffic stop lead to the recovery of multiple kilograms of methamphetamine in the gas tank of the vehicle. The gas tank had been retrofitted with a baffle in order that a separate compartment, separate from the gasoline fueling the vehicle, contained the methamphetamine. The defendant had driven the vehicle from San Antonio, Texas and was operating as a courier for another individual. The defendant was planning to deliver the methamphetamine to the Atlanta, Georgia area for the other individual. A query of the United States Border Protection Land Entry database revealed that the vehicle that the defendant was driving had crossed the U.S./Mexican border 805 times since March of 2013. The most recent inbound crossing before the stop occurred on March 12, 2018. Esparza-Arevalo was in the United States illegally and is expected to be returned to Mexico after he serves his prison term.
The case was investigated by the Homeland Security Investigations (HSI), and the Saraland Police Department. The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDEFT) Lead Attorney, Assistant United States Attorney George F. May and Assistant United States Attorney Lawrence J. Bullard for the United States Attorney’s Office for the Southern District of Alabama.
Department of Justice, Bureau of Indian Affairs Repatriate Items of Cultural Patrimony to Acoma PuebloRead the Press Release
The Department of Justice announced today the repatriation of an Acoma Shield and several other important items of historical and cultural significance to the Pueblo of Acoma and its members.
U.S. Attorney John C. Anderson for the District of New Mexico participated in a repatriation ceremony earlier today with Special Agent Franklin Chavez of the Bureau of Indian Affairs and Governor Kurt Riley of the Pueblo of Acoma. Other federal and tribal officials and community members also attended the event at the Sky City Cultural Center and Haak’u Museum.
“The Department of Justice is committed to enforcing federal laws that preserve the historical, cultural, and religious heritage of Native Americans,” said Acting Attorney General Matthew G. Whitaker. “This commitment includes ensuring sacred objects like the Acoma Shield are returned to their rightful owners. Today’s announcement further demonstrates the Justice Department’s dedication to the safety, prosperity, and wellbeing of American Indian and Alaska Native people.”
BIA recovered the shield that was repatriated today after learning that it was offered for sale online by an art gallery in Montana. Acoma Pueblo war shields are sacred pieces of cultural patrimony that date back hundreds of years and are at the heart of Acoma Pueblo’s heritage and identity. Items such as the war shield are used for ceremonial purposes and are closely kept among traditional leaders of the Pueblo community.
The Native American Graves Protection and Repatriation Act (NAGPRA) is a federal law intended to return unlawfully obtained human remains and cultural objects to their Native American homelands. The U.S. Attorney’s Office and the BIA-Office of Justice Services Cultural Resources Division are dedicated to stemming the loss and trafficking of cultural patrimony by investigating and enforcing the NAGPRA.
“Today, we celebrate the return of several items of cultural patrimony to their true owners: the Pueblo of Acoma,” said U.S. Attorney Anderson. “Our ability to return these items is the result of years of hard work. The Bureau of Indian Affairs, through Special Agent Frank Chavez’s dedicated efforts, discovered these sacred and historic items, and we, at the U.S. Attorney’s Office, are proud to partner with BIA in facilitating their return. Sadly, we all too often find sacred, religious, and culturally significant items being sold at art markets, flea markets and in galleries. In keeping with federal law, we will continue to do everything in our power to locate such objects and deliver them to their rightful homes.”
“I thank the Pueblo of Acoma for their due diligence in locating and reporting these precious objects to BIA and DOJ. I want to acknowledge the voluntarily actions of those individuals who returned the items in their possession once they learned of the cultural significance to the Pueblo of Acoma tribal community,” said Assistant Secretary for Indian Affairs Tara Sweeney. “The proactive work demonstrated by Special Agent Chavez in working closely with all involved makes us proud.”
"We have raised our voices internationally, in the halls of Congress and the legislative chambers here in New Mexico, drawing attention to the longstanding epidemic of theft, looting, and trafficking of our sacred items – all in violation of tribal and federal law. During the 2015 attempted sale of an Acoma Shield by the Eve Auction house in Paris, France, the Pueblo also identified a similar shield and other sensitive cultural items being sold here in the United States. The amount of resources and energy, the Pueblo of Acoma has expended in this matter is a reflection of the seriousness with which we treat the protection of items uniquely distinct to our culture. That is why when U.S. Attorney Anderson informed us that these items of cultural patrimony, including another Acoma Shield, were coming home -- our hearts were overjoyed," said Governor Kurt Riley.
Davenport Vascular Surgeon Agrees to Pay $2.23 Million to Settle Health Care Fraud Claims Associated with Vein Ablation ServicesRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces that Dr. Irfan Siddiqui and his vascular surgery practice, Heart and Vascular Institute of Florida (HAVI), have agreed to pay the United States $2,230,000 to resolve allegations that, from January 2, 2011, to June 30, 2018, Dr. Siddiqui and HAVI violated the False Claims Act by submitting false claims to federal health programs for reimbursement of vein ablation procedures.
“Our Civil Division aggressively pursues medical providers whose practices damage vital federal health programs,” said U.S. Attorney Maria Chapa Lopez. “This settlement is an excellent example of the robust civil health care fraud enforcement that has long been a central part of our district’s mission.”
The settlement announced today resolves allegations that Dr. Siddiqui and HAVI submitted claims to Medicare and TRICARE for vein ablation services that contained false diagnoses and symptoms. Dr. Siddiqui and HAVI also up-coded evaluation and management service claims to levels of service that were not supported by patients’ medical records, and submitted claims for vein ablation procedures that were medically unnecessary or performed by unqualified personnel, or both.
Today’s settlement results from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida with assistance from the Defense Criminal Investigative Service. Assistant United States Attorney Lindsay Saxe Griffin led the investigation.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The settlement arises from a lawsuit filed by one of Dr. Siddiqui’s patients, Ms. Lois Hawks, under the qui tam provisions of the False Claims Act. The case is styled United States ex rel. Hawks v. Heart and Vascular Institute of Florida, et al., case no. 8:16cv1574 (M.D. Fla.). Under the settlement, Ms. Hawks will receive $446,000 as a statutory relator’s share in the recovery.
Dallas-Area Woman Becomes Seventh Person to Plead Guilty in Multi-Million Dollar TRICARE Kickback SchemeRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the FBI, and Artie DeLaneuville, Acting Special Agent in Charge of the Dallas Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), announced the guilty plea today of Jennifer Sorenson, 41, of McKinney, Texas, to conspiring to violate the Anti-Kickback Statute.
In October of this year, Brad Duke, 44, of Little Rock, pleaded guilty to orchestrating a conspiracy to violate the Anti-Kickback Statute that involved an unnamed Medical Assistant and five unnamed Patient Recruiters. All six have since pleaded guilty before Chief United States District Judge Brian S. Miller, culminating with Sorenson’s guilty plea today. The group includes Charlotte Leija, 38, of Conway (previously identified as Medical Assistant 1) and Michael “Chance” Beeman, 49, of Maumelle, Michael Sean Brady, 50, of Little Rock, Jason Greene, 31, of Nashville, Tennessee, Brian Means, 44, of Fort Smith, and Sorenson (previously identified as Patient Recruiters 1, 2, 3, 4, and 5, respectively).
Duke marketed drugs for a Mississippi compounding pharmacy, earning commission whenever affiliated doctors prescribed its drugs. For a time in 2014 and 2015, TRICARE (our military’s health insurer) paid exorbitant sums—up to tens of thousands of dollars per patient, per month—for certain compounded drugs. Duke sought to capitalize on this by paying one set of kickbacks to Patient Recruiters to send him TRICARE beneficiary information and another set of kickbacks to Leija to rubber stamp prescriptions in their names. In less than one year, the scheme generated over $10 million in compound drug prescriptions for over 100 TRICARE beneficiaries hailing from as far west as Chula Vista, California, to as far east as Foxborough, Massachusetts.
At guilty pleas over the previous weeks, Leija admitted inserting the name of the Little Rock doctor for whom she worked onto prescriptions without his knowledge, while Patient Recruiters acknowledged using a variety of methods to round up TRICARE beneficiaries, such as offering them cash and gift cards to receive the drugs and paying subordinates (including current and former members of the military) to recruit still more TRICARE beneficiaries on their behalf. For her part, during today’s hearing Sorenson admitted engaging a network of subordinates that included a member of the Army National Guard, through which she recruited over 20 TRICARE beneficiaries for Duke.
All seven co-conspirators pled guilty to conspiring to violate the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b), which is punishable by up to five years in prison, a fine of not more than $250,000, and up to three years of supervised release. To date, Judge Miller has ordered nearly $3 million in forfeiture, of which almost $1.4 million has already been recovered. Sentencing will take place before Judge Miller in 2019.
If you or someone you know was approached about getting compounded prescription drugs, please contact [email protected].
This case was investigated by the FBI and HHS-OIG, and prosecuted by Assistant United States Attorney Alexander D. Morgan.
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This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at http://www.justice.gov/edar
Twitter: @EDARNEWS
Dallas County Man Receives 46 Month Sentence for Possession of a Firearm After Felony ConvictionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that George Armstead, a 28 year old resident of Selma, Alabama was sentenced to 46 months incarceration for possession of a pistol after being convicted of Robbery First Degree.
On September 14, 2018, Armstead entered a guilty pled and admitted in open court that on May 22, 2018, a Selma, AL police officer initiated a traffic stop on a green Honda being driven by Armstead for speeding. During a routine records check, using Armstead’s driver’s license information, the officer learned that Armstead had an outstanding warrant. The officer told Armstead he was going to be arrested based on the warrant and asked Armstead if he has weapons or contraband in the vehicle because it would be towed. Armstead told the officer that “his brother’s firearm” was inside the vehicle underneath the passenger seat. The firearm was seized. It is described as a Smith & Wesson, .40 caliber pistol. The firearm had been reported stolen sometime prior to May 22, 2018. Later that day, Armstead was Mirandized and agreed to talk to police. The interview was recorded. Armstead said that the firearm was his and that he placed it underneath the passenger seat. Armstead said that he bought the firearm “off the street” for $100 because he thought it was being sold for a good price. Armstead also said that he bought the pistol for protection. He further said that he was a felon and was on state probation for Robbery 1st Degree. Armstead said that he was not a bad guy. At that time, Armstead had been convicted of a felony, Robbery First Degree on April 6, 2015 in the Circuit Court of Dallas County, Alabama, case number CC-2013-000146.
Officers of the Selma, Alabama Police Department along with special agents of the Bureau of Alcohol Tobacco Firearms and Explosives investigated the case and brought it to the U. S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Dallas County Man Receives 27 Month Sentence for Possession of a Firearm After Felony ConvictionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Clarence Brenson, a 25 year old resident of Selma, Alabama was sentenced to 27 months incarceration for possession of a rifle after being convicted of Rape Second Degree.
On September 19, 2018, Brenson entered a guilty pled and admitted in open court that on June 2, 2018, Selma, AL police officers initiated a traffic stop on a vehicle being driven by a female friend of Brenson’s for failing to yield for an emergency vehicle. Brenson was in the front passenger seat and two small children were in the back seat. The officers smelled the strong odor of marijuana and asked the female driver to exit the vehicle. When she did, she told the officers she had been smoking marijuana. Officers asked her if they would find marijuana if they searched the vehicle and she said, “No” because she smoked it all. She gave permission to search the vehicle. As Brenson exited the front passenger seat officers, observed a Romarm/Cugir, model WSAR-10, 7.62X39 caliber rifle. The firearm was loaded. While Brenson was seated, the firearm was between his feet. Brenson told the officers he did not have identification and gave the officers his social security number. Brenson also told the officers he was a registered sex offender. A search of the vehicle yielded a small amount of marijuana and spent shell casings from guns other than the rifle Brenson possessed.
At that time, Brenson had been convicted of a felony, Rape 2nd, on June 13, 2016 in the Circuit Court of Dallas County, Alabama, case number CC-2013-000238, Officers of the Selma, Alabama Police Department along with special agents of the Bureau of Alcohol Tobacco Firearms and Explosives investigated the case and brought it to the U. S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Court Sentences Former Wilmington Trust Chief Credit Officer and Controller to ImprisonmentRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that the Honorable Richard G. Andrews sentenced former Wilmington Trust Chief Credit Officer William North, age 59, to 54 months’ imprisonment and a $100,000.00 fine. Judge Andrews also sentenced former Wilmington Trust Controller Kevyn Rakowski, age 65, to 36 months’ imprisonment.
The sentencing hearings of North and Rakowski followed those of Robert Harra, age 69, the Bank’s former President; and David Gibson, the Bank’s former Chief Financial Officer, age 61. On Monday, December 17, 2018, Judge Andrews sentenced both Harra and Gibson to 72 months imprisonment and a fine of $300,000.00. The Court also ordered all four Defendants to agree to a ban from the banking industry and to surrender to the custody of the Bureau of Prisons by February 19, 2019.
A federal jury convicted each of the Defendants in May 2018, following a two-month trial. The jury returned guilty verdicts on sixteen counts of the Third Superseding Indictment, including conspiracy, as well as fifteen fraud, false statements, and false entries offenses. The jury also convicted Gibson on three additional counts of making false certifications in financial reports.
At trial, the government proved that the defendants conspired to falsely report the Bank’s amount of past due loans to regulators, investors, and the public. The government presented evidence that the Defendants caused the Bank to underreport approximately $300 million in past due loans in the Third and Fourth Quarters of 2009 in Call Reports and Monthly Regulatory Reports filed with the Federal Reserve and in Securities Filings with the Securities Exchange Commission. The Bank used the false Securities Filings to raise $287 million in a February 2010 stock sale.
When the Bank finally began reporting its past due loan information correctly in the Third Quarter of 2010, it recognized losses of over $370 million and its share price plummeted. On November 1, 2010, M&T Bank announced that it had acquired Wilmington Trust at a sharply-discounted price. The Wall Street Journal referred to the acquisition as “one of the biggest banking firesales in history.” Over 700 Wilmington Trust employees lost their jobs as a result of the merger.
U.S. Attorney David C. Weiss stated, “Today’s sentencing hearings are the culmination of the multi-year investigation and trial of four of the top officers of the Wilmington Trust Corporation. This landmark prosecution of the Bank’s President, Chief Financial Officer, Chief Credit Officer, and Controller sends a clear message that top corporate bankers cannot lie to their regulators and the public about important disclosures that affect the safety and soundness of banks and impact the decision of investors to buy or sell stock. The Defendants’ actions contributed to the downfall of an important Delaware institution, causing hundreds of employees to lose their jobs and investors to lose hundreds of millions of dollars when the Bank’s stock price collapsed. The sentences imposed by the Court appropriately punish the Defendants for their serious criminal conduct and strongly encourage other corporate executives to follow the law. I am grateful to the prosecution team and our investigative partners for their steadfast commitment to this case and their unyielding efforts in bringing the Defendants to justice.”
"The FBI applauds the sentencings as an affirmation of holding corporate executives to the same standard of accountability under the law as other criminals," said FBI Baltimore Special Agent in Charge Gordon Johnson. "The FBI and its law enforcement partners here in Delaware will aggressively investigate crimes which take place in the corporate suites of banks and companies and hold those executives responsible for their actions when they betray their fiduciary responsibilities to their clients and investors."
"TARP was created to stabilize banks, not to fund banks to engage in risky lending and then commit fraud to cover up bad loans,” said Special Inspector General for the Troubled Asset Relief Program Christy Goldsmith Romero. “Once again, SIGTARP’s investigation has revealed bank executives—like Wilmington Trust’s former President, former chief financial officer, former chief credit officer, and former controller sentenced to prison—who criminally concealed hundreds of millions in past due loans resulting from risky aggressive growth in the years leading up to the financial crisis. Once again, courts are bringing justice through prison sentences for these crimes. I want to express my appreciation to U.S. Attorney David Weiss, his dedicated team of prosecutors, and our other law enforcement partners that stood fast with SIGTARP to uncover the evidence and take this case to trial.”
“The sentences handed down in this case are direct results of the excellent partnership IRS-CI, our law enforcement partners, and the U.S. Attorney’s Office has in combating violations of federal law and ensuring public trust,” said Guy Ficco, Special Agent in Charge IRS Criminal Investigation (IRS-CI), Philadelphia Field Office.
“These sentencings send a clear warning that bank executives who deliberately deceive regulators by submitting false and misleading information will be held accountable and brought to justice for their actions. I am proud of our agents and their federal law enforcement partners, whose hard work and persistence ultimately led to these outcomes,” stated Mark Bialek, Inspector General, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB-CFPB OIG).
This case was prosecuted by Assistant U.S. Attorneys Robert F. Kravetz, Lesley F. Wolf, and Jamie M. McCall, and investigated by the FBI, SIGTARP, IRS-CI, and FRB-CFPB OIG.
U.S. Attorney Weiss Statement regarding Robert Harra and David Gibson sentencings: https://go.usa.gov/xExMs.
Coralville Attorney Sentenced to Federal Prison on Mail Fraud and False Claims ChargesRead the Press Release
DAVENPORT, IA-- On December 19, 2018, Soo Hyun Jung, also known as Jay Jung, age 46, from Coralville, was sentenced to 38 months in prison after pleading guilty to two counts of Mail Fraud and one count of False Claims to a Government Agency, announced United States Attorney Marc Krickbaum. Jung was ordered to serve three years of supervised release, pay a $300 special assessment to the Crime Victims’ Fund, and pay $618,021 in restitution to twelve victims.
From 2014-2016, Jung represented clients as an attorney and tax preparer. Jung admitted in 2014, he agreed to represent a client to prepare tax returns. Jung filed tax returns and requested refunds. In July 2015, Jung contacted IRS to check on the status of these returns. During this contact, Jung updated the client’s home address on file with the IRS to Jung’s business address in Coralville. In August 2015, Jung filed additional tax returns without the consent of the client. These additional returns contained information that was not accurate and requested refunds. These returns included a 2013 return submitted to the United States Department of Treasury on August 22, 2015, that falsely claimed a refund of $15,252. As a result, in October 2015, three United States Treasury refund checks totaling $202,179 were received by Jung. Jung forged an endorsement on these checks and, in a series of transfers, caused these funds to be deposited into his personal bank account. Jung used $83,200 of these funds in November 2015 to purchase a 2014 BMW M6 Gran Coupe. In May 2016, in relation to a different client, Jung caused an investment fund to be cashed out and a $200,000 check mailed to Jung in Coralville, Iowa. Jung later caused these funds to be deposited into his personal bank account and withdrew $115,000.
This matter was investigated by the Internal Revenue Service-Criminal Investigation Division. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Indicted on Federal Gun and Drug ChargesRead the Press Release
RICHMOND, Va. – A federal grand jury returned a two-count indictment late yesterday charging a Henrico man with possessing 100 grams or more of heroin with the intent to distribute and illegally possessing a firearm as a convicted felon.
According to the indictment, Mervin Turner, 37, is charged with possession with the intent to distribute 100 grams of more of heroin. If convicted on this count, Turner faces a mandatory minimum term of 5 years in prison and maximum penalty of 40 years in prison. Turner is also charged with possession of a semi-automatic pistol, and if convicted he faces a maximum penalty of 10 years in prison.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 a 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Colonel Gary T. Settle, Superintendent of Virginia State Police, and Alfred Durham, Chief of Richmond Police, made the announcement. Assistant U.S. Attorneys Erik S. Siebert and Kenneth Simon are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-158.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Connecticut Man Sentenced to 60 Months Imprisonment for Conspiracy to Distribute Drugs in Chittenden County and Unlawful Possession of FirearmsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Anthony Mickens (a.k.a. “K”), 26, of Hartford, Connecticut, was sentenced yesterday to 60 months imprisonment by United States District Court Judge Christina Reiss, in U.S. District Court in Burlington, Vermont. Judge Reiss also sentenced Mickens to a three-year period of supervised release by the U.S. Probation Office, which begins when Mickens is released from prison. Finally, the Court ordered the forfeiture of $5,592 of drug proceeds seized from Mickens at the time of his arrest.
Mickens previously pled guilty to conspiracy to distribute heroin and cocaine base and possession of firearms by a felon. Mickens was facing a maximum sentence of twenty years imprisonment for the drug conspiracy and ten years imprisonment for the firearms offense.
According to court records, in August 2017, Mickens conspired with others to distribute heroin and crack cocaine in Chittenden County. Mickens obtained his drugs from Connecticut. At that time, Mickens lived at 46 Foxwood Circle in Williston and used a female drug user and other persons to sell drugs for him in Chittenden County. Mickens also unlawfully acquired two stolen .22 caliber pistols by trading heroin and crack cocaine to the thief for the guns. Given that Mickens had prior felony convictions he was prohibited from possessing any firearms.
Kelly D. Brady, Special Agent-in-Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), which covers all the New England states, stated: “ATF will continue to work with our state and local law enforcement counterparts, to vigorously combat drug traffickers and the threat they pose to our citizens by illegally possessing firearms in furtherance of their illegal drug trade”
The government wrote in its sentencing memorandum:
Heroin and crack cocaine are destroying lives and families in many Vermont communities. A strong message needs to continually be sent to persons, such as the defendant, who deal drugs for profit and prey on addicts, that there are significant legal consequences for distributing these addictive poisons and acquiring firearms through drug trafficking. A 60-month sentence in the context of this case achieves that deterrence goal.
U.S. Attorney Christina Nolan added: “This case, once again, highlights the link between trafficking in dangerous drugs and gun crime. It is also an example of the success we achieve through the Vermont law enforcement model of collaboration on all levels to make communities safer. The Vermont law enforcement team will never tire in its mission to bring strong consequences to those who engage in violence and unlawfully possess firearms in connection with the drug trade.”
This case was jointly investigated by the Burlington Police Department, Williston Police Department, Winooski Police Department, Milton Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Joseph Perella is prosecuting this case case on behalf of the United States. Mickens is represented by Steven Barth, Esq., of the Federal Public Defenders Office.
Central Iowa Insurance Agent Sentenced to 97 Months in Prison for Defrauding Elderly ClientsRead the Press Release
DES MOINES, IA – On December 18, 2018, Roger Duane Goodwin, age 60, was sentenced to 97 months in federal prison to be followed by three years of supervised release for Mail Fraud charges in the United States District Court for the Southern District of Iowa. United States District Court Judge Rebecca Goodgame Ebinger ordered Goodwin pay restitution to the victims totaling $934,931.21 and ordered Goodwin’s residence in Windsor Heights and a Harley Davidson motorcycle be forfeited to the United States.
Goodwin was found guilty of seven counts of mail fraud on August 9, 2018, following a four-day jury trial. At trial, the government presented evidence that Goodwin owned and operated “Goodwin Network of Advisors, Inc.” which was also referred to as “Goodwin Network”, “GN of A”, and “GNA Corp.” and sold life insurance and annuities to individuals in the Des Moines and Houston, Texas areas. From February 2013 through August 2016, Goodwin advised several of his clients to surrender or cash out existing investments—totaling over $1 million—in order to use those funds to purchase insurance products from him. Instead of purchasing insurance policies or annuity contracts for these clients as promised, Goodwin deposited the clients’ checks into a bank account associated with Goodwin Network of Advisors – which only Goodwin and his spouse could access. Goodwin kept all or large portions of the funds and used the money for unauthorized purposes that were not for the benefit of the affected clients. Goodwin used his clients’ money, unbeknownst to them, for his personal expenses including paying his mortgage, making vehicle payments, remodeling and other home improvement for his residence, travel, and various personal retail expenditures. Goodwin used small portions of the client’s funds in order to repay other clients of Goodwin’s and to make payments to the insurance companies for the benefit of other clients whose money Goodwin had failed to earlier send to the insurance company.
“Roger Goodwin targeted elderly citizens, won their trust, and then took their money through fraud,” said United States Attorney Marc Krickbaum. “This lengthy prison sentence holds him accountable, and it should serve as a warning to anyone who is tempted to prey upon our seniors.”
This case was investigated by the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Career Law Enforcement Coordinator for the U.S. Attorney’s Office Awarded South Carolina’s Highest Civilian Honor by Governor McMasterRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon is proud to announce that Rebecca Ann “Becky” Plyler was awarded the Order of the Palmetto by Governor Henry McMaster. The Order of the Palmetto is considered the highest civilian honor in the State of South Carolina. It was first awarded in 1971 by Governor John C. West. It recognizes a person's lifetime achievements and contributions to the State of South Carolina. Prior Order of the Palmetto recipients include singer James Brown and author Pat Conroy.
Ms. Plyler was surrounded by her colleagues and members of local, state, and federal law enforcement from across the state when she received the award during a surprise office gathering earlier this week. After 39 years of dedicated service to the U.S. Attorney’s Office as well as to law enforcement and citizens in communities across the state, Mrs. Plyler is set to retire at the end of the year. During the gathering, Mrs. Plyler was also awarded the Chief’s Award by Chief Mark Keel from the South Carolina Law Enforcement Division (SLED). A very prestigious award, the Chief’s Award has only been given to three other recipients over the years.
Camp Verde Man Sentenced to 12 Months and One Day for Assault on a Federal OfficerRead the Press Release
PHOENIX –This week, Kelton Treyvon Prentiss, 23, of Camp Verde, Ariz., was sentenced by Senior United States District Judge David G. Campbell to 12 months and one day in federal prison, followed by three years of supervised release. Prentiss had previously pleaded guilty to assault on a federal officer.
On March 26, 2018, Prentiss, an enrolled member of the Yavapai-Apache Nation, assaulted a Yavapai-Apache Nation police officer. As a result of the assault, the officer suffered serious bodily injury.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Yavapai-Apache Nation Police Department. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-8216-PCT-DGC
RELEASE NUMBER: 2018-170_Prentiss
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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.
Brazilian Citizens Plead Guilty to Using Counterfeit Credit Cards to Purchase over $52,000 in Merchandise and to Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – Two Brazilian citizens residing in Florida have pleaded guilty to federal wire fraud charges in connection with a scheme to use counterfeit debit and credit cards to purchase merchandise at various retail stores in Maryland and other states. Lucas Pimenta Diogo Das Gracas, age 23, pleaded guilty today, and his co-conspirator, Diogo Miranda Araujo, age 23, pleaded guilty on December 7, 2018. Araujo also pleaded guilty to aggravated identity theft for his role in the scheme in Maryland. Das Gracas also pleaded guilty to possession of counterfeit access devices and aggravated identity theft in connection with a separate case pending in the U.S. District Court for the Southern District of Mississippi. Another co-conspirator, Victor Andrade Carneiro Brito, pleaded guilty to possession and use of counterfeit access devices and aggravated identity theft in the U.S. District Court for the Southern District of Florida on October 5, 2018.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Sung Yi of the U.S. Secret Service, Baltimore Field Office; Special Agent in Charge Raimund Seifart of the Naval Criminal Investigative Service – Washington Field Office; Colonel Lance Royce of the Naval Support Activity Police Department; and Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police.
According to Araujo’s plea agreement, in November 2017, while he was on pretrial release for related Illinois state charges, Araujo traveled from Florida to Maryland, Virginia, and North Carolina. Araujo obtained a large number of cloned payment cards as well as fake Brazilian identification cards that were used in fraudulent retail transactions in Maryland and the surrounding area. On November 19, Araujo was arrested by a Maryland Transportation Authority Police (“MTAP”) officer who conducted a traffic stop of Araujo’s vehicle and learned that Araujo was driving on a suspended license. A search of the vehicle resulted in the seizure of approximately 164 counterfeit payment cards, four fake Brazilian identification cards displaying the same photo of Araujo but listing four different names, multiple receipts, and several recently purchased items of merchandise, including two laptop computers, six GPS devices, and sports equipment. Merchandise recovered from the vehicle had an approximate total value of $4,355. Most of the counterfeit payment cards displayed names listed among Araujo’s four fake identification cards and were encoded with compromised foreign credit and debit card accounts.
Also in November 2017, Das Gracas, Brito, and another co-conspirator possessed at least 189 counterfeit payments cards, which they used, along with false identification documents, to rent a vehicle and make fraudulent retail purchases in Maryland and surrounding states. Das Gracas and Brito were arrested in Maryland on November 29, 2017, after they and another co-conspirator made numerous purchases of computers and other merchandise using the counterfeit payment cards. Law enforcement stopped the vehicle that Das Gracas was driving. As Das Gracas got out of the vehicle, law enforcement officers observed numerous credit cards inside an open white box on the center console of the vehicle. All 166 cards found in the vehicle were scanned and found to be counterfeit. Most of the cards were encoded with foreign credit and debit card accounts.
Araujo further admitted that from May through July 2017, he traveled from Florida to Minnesota, Ohio, Wisconsin, and Illinois making fraudulent purchases at retailers using counterfeit payment cards. Specifically, co-conspirators in Florida sent Araujo cloned payment cards, which Araujo would pick up at commercial mail service locations and use at retailers in the area. On July 29, 2017, after making a number of fraudulent purchases at an Illinois department store, Araujo was arrested. Illinois law enforcement recovered approximately 197 cloned payment cards and approximately 157 items of merchandise, including cellular phones, small electronics, and other items valued at approximately $48,089. A search of the laptop computer found in Araujo’s luggage revealed an open document listing approximately 432 credit and debit card account numbers with associated data, and an open American Express webpage. Most of the listed credit and debit card accounts were held by financial institutions located in various foreign countries.
In connection with the Mississippi case, Das Gracas further admitted that between October 4 and October 14, 2017, Das Gracas and other co-conspirators possessed and installed “shimmer” devices on automated teller machines at financial institutions in Gulfport, Ocean Springs, Biloxi, Long Beach and D’Iberville, Mississippi. A shimmer device is equipment designed and used to record data surreptitiously from the chip of a credit, debit, or bank card. On October 18, Das Gracas and other conspirators traveled to ATMs in Hattiesburg, Mississippi, to conduct fraudulent cash withdrawals, using the account numbers and personal identification numbers obtained through the use of the previously installed shimmer devices. A total of approximately 82 payment cards were compromised and information associated with 35 of those cards was subsequently used, resulting in losses of approximately $19,235, as well as an additional $11,358 in losses to the financial institutions to repair and replace ATM card readers damaged by Das Gracas and co-conspirators when installing shimmer devices.
As part of their plea agreements, the defendants will be required to pay restitution in the full amount of the victims’ losses.
Das Gracas and Araujo each face a maximum sentence of 20 years in prison for wire fraud and a mandatory minimum of two years in prison, consecutive to any other sentence, for aggravated identity theft. Das Gracas also faces a maximum of 10 years in prison for possession of counterfeit access devices. U.S. District Judge Richard D. Bennett has scheduled sentencing for Araujo on March 6, 2019, at 3:00 p.m.; and for Das Gracas on March 21, 2019, at 3:00 p.m. Brito is scheduled to be sentenced on March 8, 2019, in the Southern District of Florida.
United States Attorney Robert K. Hur commended the U.S. Secret Service Baltimore and Chicago Field Offices, the NCIS, Navy Police, Maryland Transportation Authority Police, and the St. Charles, Illinois Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting the case.
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Bergen County, New Jersey, Man Charged with Conspiracy to Distribute HeroinRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man who was arrested with three kilograms of heroin, a loaded, stolen Glock 22 pistol with a high-capacity magazine, and tens of thousands of dollars in cash in his possession made his initial court appearance today in Newark federal court, U.S. Attorney Craig Carpenito announced.
Jose Pena, a/k/a “Gucci,” 31, of Cliffside Park, New Jersey, is charged by complaint with one count of conspiracy to distribute one kilogram or more of heroin. He appeared in court today before U.S. Magistrate Judge Steven C. Mannion and was detained.
According to the complaint:
On Dec. 17, 2018, law enforcement observed Pena driving into a public garage near the Botanical Gardens in Bronx, New York, where law enforcement suspected that Pena stored substantial quantities of narcotics in a minivan for distribution.
On Dec. 18, 2018, Pena drove from Cliffside Park to the garage, parked next to the minivan and entered it. When officers approached, they saw a brownish beige powdery substance at various places inside the minivan, including numerous softball-sized bags of suspected heroin. A field test of one of the bags was positive for heroin.
Law enforcement officers found the stolen pistol, loaded with 13 bullets in a large capacity magazine, in a backpack within reach of where Pena had been sitting. They also found tens of thousands of dollars in cash in a secret compartment behind the radio and temperature controls of the minivan.
The heroin distribution conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life imprisonment, and a $10 million fine.
U.S. Attorney Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, as well as the DEA New York Strike Force, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Jay Heinrich Esq., Bronx, New York
Bay Minette Man Sentenced in Connection with Prichard ShootingRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Laderrick Deanrey Hopson, 24, of Bay Minette, was sentenced in federal court today on the charge of felon in possession of ammunition. Hopson pled guilty to the charge in July of 2018. The evidence presented at the sentencing hearing showed Hopson depicted on surveillance video at a convenience store on St. Stephens Road in February of 2018 as he entered the store, then followed another customer out of the store and shot him. The video showed Hopson rack the gun once prior to firing it, and the ammunition ejected from the gun was recovered in the investigation that followed the shooting. The customer, identified during the hearing as R.M., later passed away at the hospital. Hopson has pending state charges relating to the homicide. The federal indictment reflected that his prior conviction is for Robbery Second Degree in 2016.
Judge Kristi K. Dubose imposed a sentence of 71 months imprisonment for the federal charge involving the ammunition, to be followed by a term of supervised release of three years. No fine was imposed, but Hopson was ordered to pay $100 in special mandatory assessments.
The case was investigated by the Prichard Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Baltimore Man Pleads Guilty to an Armed CarjackingRead the Press Release
Baltimore, Maryland – DeAndre Spencer, age 27, of Baltimore, Maryland, pleaded guilty today to an armed carjacking.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Interim Commissioner Gary Tuggle of the Baltimore Police Department; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
“We are focusing our federal resources to reduce gun violence in Baltimore,” said U.S. Attorney Robert K. Hur. “Armed criminals, especially those who brandish a weapon in the commission of a crime, face the very real risk of serving time in federal prison, where there is no parole – ever.”
“Anyone using firearms to inflict violence on law-abiding citizens must be brought to justice,” said Special Agent in Charge Rob Cekada. “ATF’s mission and focus alongside our partners is to identify and stop violent offenders who are committing these crimes.”
According to his plea agreement, on October 26, 2017, the victim was stopped in his car at the intersection of North Duncan Street and East Fairmount Avenue in Baltimore, when Spencer approached and requested a ride. The victim refused and Spencer pointed a loaded handgun at the victim and demanded that the victim get out of the car. Spencer then stole the victim’s wallet and cell phone and drove away in the victim’s car. The victim walked to a nearby school and called 911. Police arrived and began an investigation into the carjacking.
Later that day, a detective with the Baltimore County Police Department saw Spencer driving the victim’s car. Spencer was driving through intersections without stopping at stop signs. The detective began following the car to initiate a traffic stop. Shortly thereafter, Spencer crashed the car into a light pole and tried to run away. The detective apprehended Spencer and recovered a loaded handgun from his person.
Spencer and the government have agreed that if the Court accepts the plea agreement, Spencer will be sentenced to 12 years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for March 20, 2019 at 9:15 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF, the Baltimore Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew DellaBetta, who is prosecuting the case.
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Antiques Shop Owner Guilty of Smuggling Endangered WildlifeRead the Press Release
ALEXANDRIA, Va. – The owner of an antiques and specialty shop in Middleburg pleaded guilty today to violating the Lacey Act by illegally selling and transporting between $250,000 and $500,000 worth of items made from endangered species, migratory birds, and other wildlife.
According to court documents, Keith Foster, 60, of Upperville, was the owner of The Outpost LLC. The Outpost specialized in selling foreign-sourced merchandise, a portion of which included wildlife products made from endangered species such as crocodiles, sea turtles, and sawfish. To evade enforcement by the U.S. Fish and Wildlife Service, Foster relied on a shipping company to falsify import records in order to hide wildlife items and avoid inspection by the U.S. Fish and Wildlife Service and other law enforcement officials.
According to court documents, on numerous occasions beginning in December 2016, Foster discussed with a customer the unlawful nature of his conduct, including telling a customer it was illegal to import sawfish blades but he was going to continue to smuggle them, saying, “Rest assured, I’m gonna bring more in. Cause I’m the only fool in the States that probably wants to risk it.”
During March and April 2017, Foster imported over 100 undeclared wildlife items, including items protected by the Endangered Species Act and the Convention on International Trade in Endangered Species (CITES) such as sea turtle shell, sawfish blades, crocodile skin bags, coral, and mounted birds of prey. CITES is an international treaty that provides protection to fish, wildlife and plant populations that are or could be harmed as a result of trade and restricts the international trade and transport of species that are threatened with extinction.
According to court documents, on April 12, 2017, Foster showed a customer numerous wildlife pieces for sale, including sawfish blades, turtle shell, ivory, zebra hide, crocodile, and various birds and bird parts. Foster told the customer about smuggling wildlife, about lacking the proper CITES permits to purchase, export, and later import some protected wildlife, and about the dangers of being caught by United States Customs. The customer then purchased numerous wildlife items including sawfish blades, a mounted barn owl, and a jar made from sea turtle shell, all of which were previously smuggled by The Outpost. The customer was in fact an undercover U.S. Fish and Wildlife Service agent.
As part of his plea agreement, Foster and The Outpost forfeited $275,000 and over 175 items made from wildlife, which were previously smuggled and being offered for sale.
Foster pleaded guilty to violating the Lacey Act and faces a maximum penalty of 5 years in prison when sentenced on March 8, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Edward Grace, Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorney Gordon D. Kromberg is prosecuting the case.
This case is being investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, with assistance from Homeland Security Investigations, U.S. Customs and Border Protection, and the U.S. Postal Inspection Service.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-455 and 1:18-cr-456.
Anchorage Woman, Inmate Sentenced to over Three Years for Distributing Fentanyl in PrisonRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Anchorage woman, who was an inmate at Hiland Mountain Correctional Center (HMCC) at the time of the offense, was sentenced for distributing fentanyl to other inmates while in prison, which resulted in the overdose of four inmates.
Dorothy Elizabeth Lantz, 37, of Anchorage, was sentenced today by U.S. District Judge Ralph R. Beistline, to serve 40 months in prison, followed by three years of supervised release, after previously pleading guilty to three counts of distribution of a controlled substance. The court deferred ruling for 30 days on whether Lantz will also be ordered to pay restitution to the State of Alaska Department of Corrections (DOC) for related hospital bills it incurred due to the fentanyl overdoses.
According to court documents, on Oct. 24, 2017, Lantz was booked into Anchorage Correctional Complex (ACC) for a state probation violation. On Oct. 30, 2017, Lantz was transferred from ACC to HMCC, while carrying fentanyl inside her body. When she arrived at HMCC that afternoon, Lantz distributed a quantity of fentanyl to another HMCC inmate, and distributed a quantity of fentanyl to two other HMCC inmates the next day. In all, between Oct. 30 and Oct. 31, 2017, four HMCC inmates overdosed after taking fentanyl, including one inmate who overdosed two separate times. All four inmates were resuscitated and survived.
During the course of the investigation, DOC personnel were able to recover .38 grams of fentanyl from one of the HMCC inmates who overdosed. The investigation revealed that Lantz had traded the drugs to her fellow HMCC inmates in exchange for commissary items. Fentanyl, sometimes known on the street as “Grey Death,” is a powerful synthetic opioid that is up to 50 times more powerful than heroin.
At the sentencing hearing, the defendant acknowledged that in smuggling fentanyl into the prison and then distributing it, she had made “one bad decision after another.” Judge Beistline underscored that the overdoses at HMCC was a “significant event” that required a significant sentence to deter others from making the same dangerous decisions that the defendant had made. Moreover, the judge recognized that had the inmates who overdosed not been resuscitated the defendant would have been facing “years not months” in federal prison.
The Drug Enforcement Administration (DEA) and DOC conducted the investigation, leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Andrea W. Hattan
Alaska Resident Charged with Making Hoax Bomb Threats Against Lafayette CollegeRead the Press Release
EASTON, PA – United States Attorney William M. McSwain announced today that Gavin Lee Casdorph, 30, of Anchorage, Alaska, has been charged by complaint and warrant with one count of willfully making false threats in violation of 18 U.S.C. § 844(e). The complaint and warrant alleges that on May 5, 2018, Casdorph threatened to detonate multiple explosive devices he claimed to have planted on the campus of Lafayette College. A joint press conference was held today at the College to announce the charges. U.S. Attorney McSwain, Assistant Special Agent in Charge Steven McQueen of the Federal Bureau of Investigation, Philadelphia Division, and Lafayette College President Alison Byerly provided details concerning the investigation and prosecution.
Casdorph was arrested on December 12, 2018, after agents from the Federal Bureau of Investigation questioned him at his home in Anchorage, Alaska. Casdorph’s initial appearance took place on Thursday, December 13, 2018 in federal district court in the District of Alaska. On Tuesday, December 18, 2018, Casdorph again appeared in district court in Alaska for a detention hearing; the court determined that he will be detained pending trial. He will be transported to Philadelphia shortly to face the federal charges against him.
The complaint and warrant alleges that on May 5, 2018, a Twitter user operating the handle “BdanJafarSaleem” posted several false and threatening tweets, claiming to have placed explosive devices across the Lafayette College campus in order to “inflict the utmost damage possible.” A letter purportedly authored by the user was posted on Twitter, stating that his grandfather had died, his girlfriend had broken up with him, and that he had found faith and healing in Allah. The author also pledged allegiance to ISIS.
Law enforcement agencies quickly determined that there were no bombs on campus, but the hoax caused a tremendous amount of disruption and anxiety on campus. The threats also caused the College to move the location of its graduation ceremonies as a precaution.
If convicted, Casdorph will face a maximum penalty of 10 years’ imprisonment, three years’ supervised release, a fine of $250,000, and a $100 special assessment.
“This is a great example of law enforcement and school officials working together to keep the community safe, and there are important lessons to draw from it,” said U.S. Attorney McSwain. “Casdorph’s arrest sends a clear message to anyone who pulls a stunt like the one alleged in this complaint and warrant: this is not a game and threats like these are no joke. If you engage in this kind of behavior, no matter who you are or where you are – even as far as Alaska – law enforcement will determine what you did, hunt you down, and hold you accountable.”
"When the FBI learned of the threats made against Lafayette College last May, we immediately mobilized," said FBI Assistant Special Agent in Charge McQueen. "Public safety is always our highest priority. Fortunately, we fairly quickly determined that there was no indication of an immediate threat to the college and community. But as this investigation, and the arrest of Gavin Casdorph show, the FBI takes all threats of violence extremely seriously. Making a hoax threat, also known as 'swatting,' is not a joke -- it's a crime. That's the message I want people taking away from this case. If the FBI catches you 'swatting,' you may soon be 'squatting' in federal prison."
“I want to express our immense gratitude to all of the federal, state, and local law enforcement agencies, including our own Department of Public Safety, for their diligence in pursuing this investigation and identifying a suspect,” said President Byerly. “I also want to thank the Lafayette community – students, faculty, staff, parents, and alumni – for supporting one another during a difficult time last May, and for helping the College return to a sense of normalcy as quickly as possible once the FBI had determined that the threat was not credible.”
This case was investigated by the Lafayette College Department of Public Safety, Easton Police Department, and the Federal Bureau of Investigation, Philadelphia Division and Anchorage Division. It is being prosecuted by Assistant United States Attorney Joseph LaBar.
Abdulrahman El Bahnasawy Sentenced to 40 Years in Prison for Plotting to Carry out Terrorist Attacks in New York City for ISIS in Summer of 2016Read the Press Release
Abdulrahman El Bahnasawy, 20, of Missausagua, Canada, was sentenced to 40 years in prison, and a lifetime of supervised release, for plotting to carry out terrorist attacks in New York City during the summer of 2016 in support of the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. El Bahnasawy pleaded guilty on Oct. 13, 2016, to a seven-count Superseding Information charging El Bahnasawy with terrorism offenses.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York field office, Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles field office, and Commissioner James P. O’Neill of the NYPD made the announcement. The sentence was issued by U.S. District Judge Richard M. Berman.
“El Bahnasawy conspired with others to conduct terrorist attacks in New York City in support of ISIS, and came into this country to carry them out. Today’s sentence reflects the severity of his conduct and holds him accountable for his terrorist activities,” said Assistant Attorney General Demers. “I want to commend the prosecutors, agents, and analysts who are responsible for this successful result. The National Security Division is committed to identifying and holding accountable those who seek to harm to our country and our citizens.”
“In the name of ISIS, Abdulrahman El Bahnasawy planned an elaborate attack to wreak havoc and destruction on New York City,” said U.S. Attorney Berman. “He planned to detonate bombs in Times Square and the New York City subway system, and to shoot civilians at concert venues. Demonstrating his commitment to carry out the attacks, El Bahnasawy pinpointed bomb locations on a map of the subway system, and acquired an array of bomb-making materials. El Bahnasawy aspired, in his words, to ‘create the next 9/11.’ Thanks to our law enforcement partners in New York, nationally, and internationally, this potentially devastating plot was thwarted.”
Using encrypted electronic messaging applications, El Bahnasawy, a 20-year-old Canadian citizen and resident, plotted with Talha Haroon, a 20-year-old U.S. citizen residing in Pakistan, and Russell Salic, a 38-year-old Philippines citizen and resident, to conduct bombings and shootings in heavily populated areas of New York City during the Islamic holy month of Ramadhan in 2016, all in the name of ISIS (the NYC Attacks). El Bahnasawy acquired bomb-making materials and helped secure a cabin within driving distance of New York City to use for building explosive devices and staging the NYC Attacks. Haroon allegedly made plans to travel from Pakistan to New York City to join El Bahnasawy in carrying out the attacks. And as El Bahnasawy and Haroon prepared to execute the NYC Attacks, Salic allegedly wired money from the Philippines to the United States to help fund the terrorist operation.
An undercover FBI agent (the UC) infiltrated the co-conspirators’ terrorist plot, posing as an ISIS supporter prepared to join in the attacks. The FBI arrested El Bahnasawy in May 2016 after he traveled from Canada to the New York City area in preparation for the attacks, and he has been in custody since that time. Haroon was arrested in Pakistan in September 2016, and Salic was arrested in the Philippines in April 2017, based on Complaints filed against them in Manhattan federal court, and they remain in foreign custody pending proceedings for their extradition to the United States.
The charges contained in the Complaints filed against Haroon and Salic are merely accusations, and Haroon and Salic are presumed innocent unless and until proven guilty.
Mr. Demers and Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the FBI’s Los Angeles and Denver Field Offices. Mr. Demers and Mr. Berman also thanked the Royal Canadian Mounted Police, the FBI’s Cleveland Field Office, the FBI’s Legal Attaché Offices in Canada, Pakistan, and the Philippines, the New York State Police, the Department of Justice’s Office of International Affairs, and the U.S. Attorney’s Office for the Central District of California for their assistance.
Assistant U.S. Attorneys Negar Tekeei and George D. Turner of the Southern District of New York are in charge of the prosecution, with assistance from Trial Attorneys Joshua Champagne and Larry Schneider of the National Security Division’s Counterterrorism Section.
Abdulrahman El Bahnasawy Sentenced to 40 Years in Prison for Plotting to Carry Out Terrorist Attacks in New York City for ISIS in Summer of 2016Read the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John C. Demers, the Assistant Attorney General for National Security, announced today that ABDULRAHMAN EL BAHNASAWY was sentenced to 40 years in prison for plotting to carry out terrorist attacks in New York City during the summer of 2016 in support of the Islamic State of Iraq and al-Sham (“ISIS”), a designated foreign terrorist organization. EL BAHNASAWY pled guilty on October 13, 2016, before U.S. District Judge Richard M. Berman to a seven-count Superseding Information charging EL BAHNASAWY with terrorism offenses. Judge Berman also imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “In the name of ISIS, Abdulrahman El Bahnasawy planned an elaborate attack to wreak havoc and destruction on New York City. He planned to detonate bombs in Times Square and the New York City subway system, and to shoot civilians at concert venues. Demonstrating his commitment to carry out the attacks, El Bahnasawy pinpointed bomb locations on a map of the subway system, and acquired an array of bomb-making materials. El Bahnasawy aspired, in his words, to ‘create the next 9/11.’ Thanks to our law enforcement partners in New York, nationally, and internationally, this potentially devastating plot was thwarted.”
Assistant Attorney General John C. Demers said: “El Bahnasawy conspired with others to conduct terrorist attacks in New York City in support of ISIS, and came into this country to carry them out. Today’s sentence reflects the severity of his conduct and holds him accountable for his terrorist activities. I want to commend the prosecutors, agents, and analysts who are responsible for this successful result. The National Security Division is committed to identifying and holding accountable those who seek to harm to our country and our citizens.”
According to the Indictment, Superseding Information, and other court filings:
Using encrypted electronic messaging applications, EL BAHNASAWY, a 20-year-old Canadian citizen and resident, plotted with Talha Haroon, a 20-year-old U.S. citizen residing in Pakistan, and Russell Salic, a 38-year-old Philippines citizen and resident, to conduct bombings and shootings in heavily populated areas of New York City during the Islamic holy month of Ramadhan in 2016, all in the name of ISIS (the “NYC Attacks”). EL BAHNASAWY acquired bomb-making materials and helped secure a cabin within driving distance of New York City to use for building explosive devices and staging the NYC Attacks. Haroon allegedly made plans to travel from Pakistan to New York City to join EL BAHNASAWY in carrying out the attacks. And as EL BAHNASAWY and Haroon prepared to execute the NYC Attacks, Salic allegedly wired money from the Philippines to the United States to help fund the terrorist operation.
An undercover FBI agent infiltrated the co-conspirators’ terrorist plot, posing as an ISIS supporter prepared to join in the attacks. The FBI arrested EL BAHNASAWY in May 2016 after he traveled from Canada to the New York City area in preparation for the attacks, and he has been in custody since that time. Haroon was arrested in Pakistan in September 2016, and Salic was arrested in the Philippines in April 2017, based on Complaints filed against them in Manhattan federal court, and they remain in foreign custody pending proceedings for their extradition to the United States.
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In addition to the prison term, EL BAHNASAWY, 20, of Mississauga, Canada, was sentenced to lifetime supervised release.
Mr. Berman and Mr. Demers praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the FBI’s Los Angeles and Denver Field Offices. Mr. Berman and Mr. Demers also thanked the Royal Canadian Mounted Police, the FBI’s Cleveland Field Office, the FBI’s Legal Attaché Offices in Canada, Pakistan, and the Philippines, the New York State Police, the Department of Justice’s Office of International Affairs, and the U.S. Attorney’s Office for the Central District of California for their assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Negar Tekeei and George D. Turner are in charge of the prosecution, with assistance from Trial Attorneys Joshua Champagne and Larry Schneider of the Department of Justice’s National Security Division.
The charges contained in the Complaints filed against Haroon and Salic are merely accusations, and Haroon and Salic are presumed innocent unless and until proven guilty.
9 Defendants Charged in Chicago in International Investigation Targeting “Romance Scams” and “Mystery Shopper” SchemesRead the Press Release
CHICAGO — Seven Chicago-area residents are among nine individuals arrested in the United States and Nigeria as part of an international investigation into online “romance scams” and “mystery shopper” schemes.
During the Chicago-based investigation, dubbed “Operation Gold Phish,” law enforcement identified a variety of cyber-enabled fraud schemes allegedly carried out by conspirators in the U.S. and Nigeria. One of the alleged schemes involved “romance scams,” in which a conspirator builds trust with a victim through a purported online romance before convincing the victim to send money to a predetermined recipient. The conspirators initially contacted victims online via applications and websites, including Match.com, Facebook, and Instagram, the complaint states. Another alleged cyber-enabled fraud involved a “mystery shopper” scheme, in which conspirators fraudulently offered victims opportunities to work as a mystery shopper and receive commissions for evaluating retailers. The victim received a check through the U.S. mail with instructions to deposit it in a personal bank account, withdraw the money in cash, and wire it to a third party. The check turned out to be fake, and the victims were defrauded of the wired money, the charges allege.
A criminal complaint filed Dec. 4, 2018, in U.S. District Court in Chicago charged nine defendants with conspiracy to commit wire fraud. Arrests were recently carried out in Illinois, Texas, and Nigeria, and all of the defendants are now in law enforcement custody. The Nigerian Economic and Financial Crimes Commission is conducting a related investigation of other individuals in Nigeria.
The U.S. charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. Valuable assistance was provided by the Nigerian Economic and Financial Crimes Commission. Assistant U.S. Attorneys Peter S. Salib and Charles W. Mulaney represent the government.
Arrested on the U.S. charges in Illinois were DANIEL SAMUEL ETA, also known as “Captain” and “Etaoko,” 35, of Skokie; BABATUNDE LADEHINDE LABIYI, also known as “Junior,” 20, of Chicago; BARNABAS OGHENERUKEVWE EDJIEH, 29, of Chicago; SULTAN OMOGBADEBO ANIFOWOSHE, also known as “Ayinde,” 26, of Chicago; BABATUNDE IBRAHEEM AKARIGIDI, also known as “AK,” 39, of Chicago; MIRACLE AYOKUNLE OKUNOLA, 21, of Chicago; and OLUROTIMI AKITUNDE IDOWU, also known as “Idol,” 55, of Chicago. Arrested in Texas was ADEWALE ANTHONY ADEWUMI, 27, of Richardson, Texas. Arrested in Nigeria was OLANIYI ADELEYE OGUNGBAIYE, also known as “DonChiChi,” 26, of Lagos, Nigeria.
In addition to the romance and mystery shopper schemes, the complaint accuses the conspirators of engaging in various other cyber-enabled scams, including investment and employment frauds. The conspirators also defrauded victims by targeting corporate email accounts, the complaint states. In the email scam, known as a business email compromise, the conspirators fraudulently obtained usernames and passwords or sent “spoofing” email messages that claimed to be from a company employee, instructing the victim to change the wire instructions for bank payments. Per the instructions given in the fraudulent emails, the victims unknowingly wired funds to bank accounts controlled by the conspirators that had been opened in fictitious names utilizing fake passports, the complaint states.
The charge in the complaint carries a maximum sentence of 20 years in prison. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
18 December 2018
York Man Sentenced to 50 Months’ Imprisonment for Being A Convicted Felon in Possession of AmmunitionRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 17, 2018, U.S. District Court Judge Sylvia H. Rambo sentenced Kevin O’Neal Thomas, age 33, of York, Pennsylvania, to 50 months’ imprisonment for possession of ammunition.
According to United States Attorney David J. Freed, on June 21, 2017, Thomas possessed ammunition at Stockade Tavern, York, when Thomas shot a 9mm round into the floor of the bar.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department and is being prosecuted by Assistant U.S. Attorney Meredith A. Taylor.
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.
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Wilmington Man Sentenced on Drug ChargesRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that United States District Judge Louise W. Flanagan, sentenced GARY NIXON, 56, of Wilmington to 131 months’ imprisonment, followed by 3 years of supervised release. An additional 36 months imprisonment sentence was imposed for a supervised release violation with 24 months of that sentence to run consecutive to the 131 months. NIXON total combined active sentence is 155 months.
NIXON was charged in a two-count indictment filed in the Eastern District of North Carolina on May 22, 2018. On July 25, 2018, NIXON pled guilty to conspiracy to possess with intent to distribute 100 grams or more of heroin and possession with the intent to distribute heroin.
On April 23, 2018 deputies with the New Hanover County Sheriff’s Office received information that NIXON was in possession of heroin while traveling from the Washington, D.C. area to Wilmington, North Carolina. Law enforcement performed a traffic stop of this vehicle when it entered New Hanover County. During the search of the vehicle, deputies found a pill bottle containing approximately 90 grams of heroin. NIXON was a passenger in the car and admitted that the heroin belonged to him.
According to law enforcement, the investigation revealed that NIXON was involved with the distribution of more than 500 grams of heroin from October 2017 until the time of his arrest. NIXON was on Federal supervised release at the time of his arrest for a Federal crack cocaine conviction.
This case is part of the DEA led OCDETF operation “All the Pieces Matter”. This is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Drug Enforcement Administration and the New Hanover County Sheriff’s Office. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the United States.
Wilkes-Barre Woman Sentenced for Stealing Checks from Mail ReceptaclesRead the Press Release
WILKES-BARRE – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 17, 2018, United States District Court Judge A. Richard Caputo sentenced Niskauri DeJesus-Toribio, age 21, who resided in Wilkes-Barre, Pennsylvania, to a time-served sentence of one day and two years of supervised release for stealing mail.
According to United States Attorney David J. Freed, DeJesus-Toribio was convicted of conspiring with others to steal checks from mail receptacles throughout Luzerne County, deposit the checks into accounts under their control, and withdraw the funds in cash. As part of the sentence, Judge Caputo ordered DeJesus-Toribio to pay $16,310.91 to the victims of her crimes. DeJesus-Toribio’s co-defendant, Michael Mejia, was previously convicted and sentenced to approximately six months of imprisonment.
The investigation was conducted by United States Postal Inspection Service. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Washington, D.C. Man Sentenced to Prison for Attack Outside D.C. CourthouseRead the Press Release
A Washington, D.C. man was sentenced to 18 months in prison for his April attack on a federal prosecutor outside the Superior Court for the District of Columbia, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Maurice Hight, 28, who pleaded guilty on Oct. 10 to one count of felony assault on a federal official, was sentenced by U.S. District Judge Paul L. Friedman of the District of Columbia to serve 18 months in prison followed by three years of supervised release. According to admissions made in connection with his plea agreement, on April 5, 2018, Maurice and his sister and co-defendant, Tiera Hight, 21, were in a courtroom in the Superior Court for the District of Columbia waiting for a verdict against their brother, who was being tried for murder. After the guilty verdict, Maurice and Tiera Hight exited the courthouse and waited outside. Several minutes later, the murder victim’s daughter exited the courthouse, escorted by a federal prosecutor. As they approached the street, Tiera Hight walked directly towards the pair and she and Maurice Hight began to circle them. Tiera Hight then began to spit on the murder victim’s daughter and physically attacked her. The federal prosecutor intervened, but Tiera Hight continued her attack. Maurice Hight then joined the fight, forcibly grabbing the federal prosecutor, pulling her down and punching her in the right side of the face with a closed fist. The federal prosecutor fell hard to the ground and sustained swelling and bruises to her face and arm. Two deputy U.S. Marshals in the area placed Maurice Hight under arrest, and Maurice Hight proceeded to spit in the face of one of the deputy U.S. Marshals.
“The Department of Justice is committed to protecting the safety of our federal officials,” said Assistant Attorney General Benczkowski. “As this case demonstrates, we will not tolerate any violence against our federal prosecutors for doing their jobs in upholding the rule of law.”
Tiera Hight is scheduled to be sentenced on Feb. 19, 2019 before Judge Friedman.
The Criminal Investigations and Intelligence Unit for the U.S. Attorney’s Office for the District of Columbia investigated this case. Trial Attorneys Jennifer A. Clarke and Lauren Bell of the Criminal Division’s Public Integrity Section are prosecuting the case.
United States Attorney announces efforts to fight violent crime in Rapides Parish through firearms prosecutionsRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced today a new effort underway to reduce violent crime in the Rapides Parish area by partnering with federal, local and state law enforcement through the Project Safe Neighborhoods Program.
Mr. Joseph’s focus on violent crime is part of the Department of Justice’s ongoing efforts to increase targeted prosecutions of violent crime through the Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. It is an evidence-based program proven to be effective at reducing violent crime. In the past year, the U.S. Attorney’s Office for the Western District of Louisiana has prosecuted more than 200 defendants throughout the district, many of which have been in the Alexandria area, for firearm related offenses, including felons and drug dealers in possession of firearms.
In Rapides Parish, this focus includes sending law enforcement into the communities to conduct what are referred to as knock and talks. Today, the U.S. Attorney’s Office joined with the ATF, FBI, Louisiana State Police, Rapides Parish District Attorney’s Office, Rapides Parish Sheriff’s Office, Alexandria Police Department, Pineville Police Department, and Louisiana Probation and Parole to promote public safety in areas that have seen an increase in violent crime. By increasing the visibility of federal, state and local law enforcement agencies, they will inform citizens of prevention and deterrence efforts, as well as services available to the public.
Another avenue of prosecution that Joseph’s office is focused on, is cases arising from individuals submitting false information on forms at gun shops, pawnshops, sporting goods stores, or any retail establishment where firearms are sold, in order to purchase a firearm illegally for themselves or for someone else. It is a felony under federal law for someone to lie on a background check form to try to hide past criminal convictions or protective orders, and is punishable by up to 10 years in prison. This year, the U.S. Attorney’s office has charged eight individuals in U.S. District Court with felony charges for making false statements during purchases of firearms.
“The aim of these prosecutions is to remove the most violent and dangerous offenders from our streets,” Joseph stated. ”We stand with our law enforcement partners in confronting head-on, the violence, gun crime and drug abuse that plaque our communities. We will not be deterred, and we will continue to step up the pressure on the bad actors. Our message is clear, if you threaten the safety and security of our communities, you face the very real prospect of going to federal prison.”
The Western District of Louisiana consists of 42 of Louisiana’s 64 parishes and encompasses two-thirds of the State of Louisiana. This area covers the cities of Alexandria, Lafayette, Lake Charles, Monroe and Shreveport.
U.S. Postal Service Employee Charged with Embezzlement Through Postal Money OrdersRead the Press Release
BOSTON – A U.S. Postal Service (USPS) employee was charged yesterday in federal court in Boston with embezzling over $18,000.
Rashayna Seney, 25, of Randolph, was charged in an Information with one count of embezzlement and theft of public money, property or records.
According to the charging document, Seney began working for USPS around 2016, most recently as a Sales & Service Distribution Associate at the Waban Post Office. In this role, Seney had the ability to issue foreign and domestic postal money orders. Seney engaged in a scheme in which she issued money orders to friends and then voided the transactions so that her friends could deposit the orders without ever paying for them. Additionally, Seney used counterfeit bills in exchange for some money orders that her associates then cashed. It is alleged that Seney’s scheme cost the USPS over $18,000.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, and a $250,000 fine or twice the gross gain or loss, whichever is greater. 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; Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office; Joseph W. Cronin, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the Information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.