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Friday 2 November 2018
Reserve Man Sentenced to 4 Years in Prison for Cocaine ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that GARRICK JONES, age 39, of Reserve, was sentenced yesterday for charges relating to narcotics trafficking, retaliation against a witness, and firearm possession.
JONES pled guilty on October 12, 2017, to conspiring with others to distribute at least 28 grams of cocaine base (“crack”), and to retaliating against a witness for information provided to law enforcement relating to the commission of a federal offense. JONES, who was previously convicted of a felony, also pled guilty to illegal possession of a firearm by a felon. JONES possessed a Smith and Wesson .38 caliber pistol.
Judge Jane Triche Milazzo sentenced JONES to 48 months in the Bureau of Prisons, as well as 4 years of supervised release following the term of imprisonment.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office. Assistant U.S. Attorneys Nicholas D. Moses and Edward Rivera are in charge of the prosecution.
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Repeat Felony Offender Sentenced to 7 Years for Gun PossessionRead the Press Release
LOUISVILLE, Ky. – United States District Judge Rebecca Grady Jennings sentenced Rodney W. Davis, a criminal with nine prior felony convictions, to 84 months imprisonment, followed by 3 years of supervised release for possession of a firearm and ammunition, announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
“This sentence is what results from real collaboration between the feds, state, and local law enforcement; we’re aggressively targeting the most dangerous career offenders and getting them off of the streets of our city,” said United States Attorney Russell M. Coleman.
Davis, 51, from Louisville, Kentucky admitted in plea agreement on June 26, 2018 to being a prohibited person in possession of a firearm.
The prosecution came as part of a traffic violation occurring on November 12, 2016 at approximately 12:55 a.m. when two Louisville Metro Police Department Detectives observed a white 2003 Chrysler minivan make a right turn onto South Preston Street from West Camp Street without using a turn signal. The minivan, driven by Davis, subsequently turned left onto eastbound Camp Street without using a signal (again) and then made an illegal U-turn blocking both lanes of Camp Street. The detectives made a traffic stop and could plainly observe Davis making movements with his hands toward the center console of the car. Davis ignored demands by the officers to “show your hands.” One of the officers opened the driver door and assisted Davis out of the vehicle. While doing so, he noticed a plastic baggie in Davis’ left hand which contained a white powdery substance. The baggie turned out to contain 4.2 grams of crack cocaine.
Based upon the probable cause established by the apparent presence of controlled substances in the car, a search of the van revealed a “handle up” Kel-Tec semi-automatic .32 caliber handgun between the driver’s seat and the center console of the vehicle. When officers ran the serial number of the gun through NCIC, the results confirmed that the gun was stolen.
Davis was previously convicted in state court of complicity to trafficking cocaine in 2013, possession of a controlled substance (cocaine) in 2007, possession of a controlled substance (cocaine) in 2006, possession of a controlled substance (cocaine) 2002, possession of a controlled substance (cocaine) in May of 1997 and again in November of 1997, sexual abuse in 1990, and possession of a controlled substance in 1988.
The case was prosecuted by Assistant United States Attorney Randy Ream and investigated by the Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
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The U.S. Attorney’s Office is partnering with federal, state, local law enforcement to specifically identify the criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Safe Neighborhoods, a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.
Repeat Drug Offender Pleads Guilty to Trafficking 5 Different DrugsRead the Press Release
PITTSBURGH, Pa – A former resident of West Mifflin, Pa., pleaded guilty in federal court to a federal narcotics charge, United States Attorney Scott W. Brady announced today.
Stanley Church, 47, pleaded guilty on Wednesday to one count of possession with intent to distribute quantities of heroin, fentanyl, cocaine, MDMA, and Psilocyn mushrooms before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on March 17, 2017, Allegheny County Police detectives went to execute a search warrant on the person of Stanley Church and his vehicle. This search warrant was approved after investigators observed Church trafficking drugs out of this same vehicle. Investigators conducted a traffic stop on Church and then began to search his car. Inside Church’s car investigators found quantities of heroin, fentanyl, cocaine, MDMA, and Psilocyn mushrooms, drug packaging material, scales, and other paraphernalia. Church has previously been convicted of state and federal narcotics offenses.
Judge Bissoon scheduled sentencing for March 13, 2019. The law provides for a maximum sentence of up to 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior record of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant United States Attorney Timothy Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the guilty plea in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, McKees Rocks Police Department, West Mifflin Police Department, and Pennsylvania Attorney General’s Office.
Repeat Drug Felon Sentenced to 151 Months on Meth ChargeRead the Press Release
MACON -- United States Attorney for the Middle District, Charles E. Peeler, announced today that Nathaniel Gordy, 31 of Macon, was sentenced to 151 months in prison for possession of methamphetamine with intent to distribute on October 30, 2018. U.S. District Court Judge Tilman E. Self, III handed down the sentence in Macon federal court.
Bibb County authorities conducted a traffic stop after Mr. Gordy ran a red light on July 14, 2017. Law enforcement smelled an odor of marijuana coming from the vehicle, and during a search, observed a loaded Taurus, 9mm semi-automatic pistol underneath the front passenger seat. They also discovered loose marijuana. In the trunk, officers located a sentry safe holding what was later tested and identified as 403.39 grams of methamphetamine. Marijuana found was tested and confirmed to be 6,133.4 grams or approximately thirteen pounds of marijuana. Mr. Gordy has two prior felony convictions for possession of marijuana with intent to distribute.
“This is a significant sentence handed down by a federal judge this week,” said Charles Peeler, United States Attorney for the Middle District. “Significant because it shows that repeat drug distributors will not be tolerated in Georgia. Methamphetamine is a drug that is ruining lives in our communities, every day, and its manufacture and distribution must be stopped. I want to thank the Bibb County Sheriff’s Office and the ATF for their work.”
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was investigated by the Bibb County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant U.S. Attorney Kimberly Easterling.
Questions regarding this case should be addressed to Pamela Lightsey, Public Information Officer, at 478-731-1824 or [email protected] or Melissa Hodges, Public Affairs Director (Contract), at (478) 765-2362 or [email protected].
Recidivist Sex Offender Sentenced to 15 Years in Prison for Downloading Child PornographyRead the Press Release
A Fairfax, Virginia man was sentenced today to 15 years in prison for downloading child pornography, followed by a lifetime term of supervised release, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office announced.
Christopher James Tator, 31, a newspaper carrier, was sentenced by Senior U.S. District Judge T.S. Ellis III of the Eastern District of Virginia. In August, Tator pleaded guilty to one count of receipt of child pornography by a person with a prior conviction relating to aggravated sexual abuse, sexual abuse, or abusive sexual conduct involving a minor.
According to court documents, Tator was discovered by the FBI making child pornography files available over an Internet file-sharing network. A computer forensic examination of devices seized from Tator’s residence during a search warrant revealed that he had used a computer to download child pornography videos from a Dropbox cloud storage account. Tator’s devices also contained hundreds of thumbnail images of children being sexually abused, many of which depicted the sexual abuse of infants. Tator is a registered sex offender as a result of a 2010 Prince William County conviction of attempting to take indecent liberties with children.
The case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, with assistance from the High Technology Investigative Unit (HTIU) of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). CEOS Trial Attorney Kyle P. Reynolds 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 U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Queens Resident Sentenced to 30 Months’ Imprisonment for Smuggling Counterfeit Apparel into the United States from ChinaRead the Press Release
Earlier today, in federal court in Brooklyn, Su Ming Ling, a resident of Queens, New York, was sentenced by United States District Judge Carol Bagley Amon to 30 months’ imprisonment and ordered to pay $12,905.67 in restitution for one count of fraudulent importation and transportation of goods and one count of conspiracy to traffic in counterfeit goods. The charges arose out of Ling’s participation in a scheme to import more than 200 shipping containers of counterfeit brand-name apparel from the People’s Republic of China. In aggregate, the counterfeit apparel imported by the defendant and his co-conspirators between May 2013 and January 2017, if sold in the United States as genuine, would have retailed for an estimated $297 million. Ling pleaded guilty to the charge on January 5, 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian Michael, Special-Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) Newark Division, and Troy Miller, Director, U.S. Customs and Border Protection (CBP), New York Field Office, announced the sentence.
“With today’s sentence, Ling has been held responsible for illegally importing millions of dollars’ worth of knockoff goods that displace consumer demand for companies’ genuine products,” stated United States Attorney Donoghue. “This Office is committed to prosecuting counterfeit traffickers like the defendant whose criminal conduct causes harm to the American economy.”
“Homeland Security Investigations (HSI) is committed to ensuring the integrity of the legitimate trade, travel and financial systems of the United States,” stated HSI Special Agent-in-Charge Michael. “This defendant smuggled massive amounts of counterfeit goods into the country, harming legitimate businesses and shortchanging consumers who thought they were getting authentic products. HSI aggressively targets transnational criminal organizations that profit from smuggling counterfeit merchandise, seizing their illicit goods and arresting those responsible.”
“These seizures by U.S. Customs and Border Protection provided the critical link to an ongoing investigation that resulted in the takedown of an elaborate criminal enterprise,” stated CBP Director Miller. “It is through our interagency partnerships, and collaborative approaches like the one leading to today’s sentence, that law enforcement successfully combats modern criminal organizations.”
The 211 shipping containers Ling smuggled into the United States included counterfeit goods, such as Nike shoes, UGG boots and NFL jerseys. As part of the scheme, Ling used aliases to register and create numerous Internet domain names and email addresses that resembled the Internet domain names of real U.S. businesses. Ling also hired CBP-licensed customs brokers to file customs entry forms on behalf of the businesses whose identities he had stolen and provided those customs brokers with falsified shipping documents. The counterfeit goods were distributed to locations in Brooklyn, Queens and New Jersey, among other areas.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Ian C. Richardson and Alexander Mindlin are in charge of the prosecution.
The Defendant:
SU MING LING
Age: 50
Middle Village, New YorkE.D.N.Y. Docket No. 17-CR-541
Press Release by United States Attorney Relating to November 2018 ElectionsRead the Press Release
United States Attorney SHAWN N. ANDERSON announced today that Assistant United States Attorney (AUSA) Marivic P. David will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election. AUSA David has been appointed to serve as the District Election Officer (DEO) for the District of Guam and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Anderson said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Anderson stated that AUSA/DEO David will be on duty in this District while the polls are open. Ms. David can be reached by the public by calling 479-4120.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public by calling Special Agent Joshua Kipp at 472-7465 or 645-1806.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Anderson said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Pittsburgh Man Charged with September 2018 Robbery of West Mifflin PNC BankRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of bank robbery, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on Oct. 31, named Barry Daniels, 29, as the sole defendant.
According to the indictment, on or about September 12, 2018, Richards robbed the PNC Bank at 4917 Homeville Road, West Mifflin, PA 15122.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the West Mifflin Police Department, and the Turtle Creek Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pinon Brothers Sentenced to 108 Months for Distributing MethamphetamineRead the Press Release
PHOENIX– On Oct. 29, 2018, brothers Corwin Haskan, 21 and Corey Irving Haskan, 22 of Pinon, Ariz., were sentenced by U.S. District Judge Diane J. Humetewa to108 months’ imprisonment. Both had previously pleaded guilty to possession with the intent to distribute 500 grams or more of methamphetamine.
In July 2017, the Navajo Nation Police searched the home of Corwin and Corey Haskan and seized approximately 4 pounds of methamphetamine, numerous firearms and over $50,000. The Haskan brothers each admitted their intent to distribute methamphetamine to another person. Corwin and Corey Haskan are members of the Navajo Nation.
Navajo Nation Criminal Investigations and the Federal Bureau of Investigation conducted the investigation. The prosecution was handled by Kiyoko Patterson, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-8026-PCT-DJH
RELEASE NUMBER: 2018-144_Haskan
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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.
Owner of Charter Bus Company Arrested and Charged for Bribing Federal Safety InspectorRead the Press Release
BOSTON – The owner of a charter bus company operating in Massachusetts was arrested yesterday on charges of bribing a federal safety investigator in order to influence the safety review of the passenger buses. The safety manager of the company was previously arrested on the same charges.
Le Wen Wu, 49, and Yat Kuen Chan, aka “Andy,” 41, both of Quincy, were charged in an indictment unsealed yesterday with one count conspiracy to pay an unlawful gratuity and to bribe a public official, one count of unlawful gratuities to a public official, and three counts of bribery of a public official. Wu, the owner of the company, was released on conditions following an initial appearance yesterday before U.S. Magistrate Judge M. Page Kelly. Chan, the safety manager of the company, was arrested on a criminal complaint on Sept. 19, 2018, and has been released on conditions since that time. He is scheduled to be arraigned on Nov. 7, 2018.
As alleged in charging documents, L&W Travel Inc. was a passenger bus charter company purportedly located on Cambridge Street in Boston. Wu was the owner, president, treasurer, secretary, vice president and director of L&W, and Chan acted as the safety manager. In January 2018, L&W applied to register as a charter bus company with the Federal Motor Carrier Safety Administration (FMCSA). The FMCSA, which is part of the U.S. Department of Transportation, establishes and enforces safe operating requirements for motor carriers, including mandatory safety audits within the first year of operation. Between January and July 2018, the FMCSA made several unsuccessful attempts to contact L&W to complete its registration process, including scheduling a safety inspection. In July 2018, having received no response from L&W, FMCSA sent them an Order revoking their registration and requiring L&W to cease all interstate transportation. Thereafter, a representative of L&W contacted FMCSA and scheduled a safety audit and compliance review on July 26, 2018.
The charging documents allege that on multiple occasions in July and August 2018, Wu and Chan gave a total of $2,800 in cash to an FMCSA safety investigator to influence the investigator’s compliance review and safety audit of L&W. For example, on Aug. 1, 2018 Chan allegedly gave the investigator $600 so that the investigator would not place an L&W bus immediately out of service based on two significant safety violations – inadequate brakes and a defective emergency exit door – but rather, would allow L&W to fix the brakes in Massachusetts and drive the bus to New Jersey for repair of the door.
The charge of conspiracy to pay unlawful gratuity and to bribe a public official provides for a sentence of no greater than five years in prison, one year of supervised release and a fine of $250,000. The charge of unlawful gratuities to a public official provides for a sentence of no greater than two years in prison, one year of supervised release and a fine of $250,000. The charge of bribery of public officials provides for a sentence of no greater than 15 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Kristina Barclay of Lelling’s Public Corruption and Special Prosecutions Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Opa-Locka Resident Sentenced to 63 Months in Prison for Possession of an Unregistered FirearmRead the Press Release
An Opa-Locka resident was sentenced yesterday to 63 months in federal prison, after having been convicted at trial of possession of an unregistered firearm.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Daniel Giustino, Chief, Pembroke Pines Police Department, made the announcement.
On February 9, 2017, Adrian Tremayne Wilson, 39, of Opa-Locka, was convicted at trial by a federal jury of possession of an unregistered firearm, commonly referred to as a sawed-off shotgun, in violation of Title 26, United States Code, Sections 5861(d) and 5871. Yesterday, United States District Judge William J. Zloch sentenced Wilson to 63 months in prison followed by 3 years of supervised release.
According to court records, including evidence presented during the defendant’s trial, on June 12, 2016, an officer of the Pembroke Pines Police Department approached Wilson inside a Speedway gas station and convenience store intending to issue traffic citations to him. Before Wilson pulled into the gas station, he had been observed speeding and committing other traffic infractions. When the officer asked Wilson for his driver’s license, Wilson began cursing at the officer, calling him a racist, claiming he was being harassed, and he refused to provide his driver’s license, which at the time he had in his pocket.
The officer told Wilson that if he refused to produce his driver’s license, he would be arrested. Wilson replied, “Then arrest me.” After Wilson was arrested, the officer impounded his vehicle. During a routine inventory of the contents of Wilson’s vehicle, the officer discovered a firearm located next to the driver’s seat. The firearm was loaded with four 12 gauge shotgun shells, one of which was in the firing chamber. The firearm was not registered to Wilson in the National Firearms Registration and Transfer Record as required by law.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF and the Pembroke Pines Police Department. This case was prosecuted by Assistant U.S. Attorney William T. Shockley.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Northrop Grumman Systems Corporation to Pay $27.45 Million to Settle False Claims Act AllegationsRead the Press Release
The Justice Department announced today that Northrop Grumman Systems Corporation (NGSC) has agreed to settle civil allegations that it violated the False Claims Act (FCA), 31 U.S.C. §3729, by overstating the number of hours its employees worked on two battlefield communications contracts with the United States Air Force. Under the settlement, NGSC, headquartered in Falls Church, Virginia, will make a payment of $25.8 million, which, combined with earlier repayments, will result in a civil recovery of approximately $27.45 million.
“Contractors that knowingly inflate their bills to the government will face serious consequences,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “This settlement demonstrates, once again, that we will not tolerate those who falsely charge the armed forces or any agency of the United States to illegally profit at the expense of the American taxpayer.”
“Federal contracts are not a license to steal from the U.S. Treasury,” said U.S Attorney Adam Braverman. “DOJ is firmly committed to vigilantly weeding out abuse and will swiftly pursue all available remedies when egregious fraud occurs.”
“Air Force OSI’s Office of Procurement Fraud is dedicated to protecting the taxpayer’s interests worldwide while safeguarding the needs of the warfighter. This investigation is a testament to AFOSI’s global reach, and to our partnerships with DCIS and the FBI which allowed us to meticulously unravel this international conspiracy to defraud the U.S. Air Force,” said Jason T. Hein, Special Agent in Charge of the Air Force OSI Office of Procurement Fraud, Detachment 6.
“We are committed to ensuring the funds of the American people are used for their intended purpose,” stated John Brown, Special Agent in Charge of the San Diego Field Office - Federal Bureau of Investigation. “This is another example of the incredible partnerships between the FBI and our Department of Defense counterparts. Together, uncovering this immense fraud against the government and returning the funds to the American taxpayer is vitally important to ensuring our military receives the honest services they are due.”
The Air Force entered into two contracts with NGSC for battlefield communications services: the Battlefield Airborne Communications Node contract and the Dynamic Re-tasking Capability contract. Today’s settlement resolves allegations that NGSC billed the Air Force for labor hours purportedly incurred between July 1, 2010, and December 31, 2013, by individuals stationed in the Middle East who had not actually worked the hours claimed. NGSC also entered into a separate agreement with the Criminal Division of the U.S. Attorney’s Office for the Southern District of California related to these contracts under which it has agreed to forfeit an additional $4.2 million.
The civil settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of California, the Defense Contract Audit Agency, the Air Force Office of Special Investigations, the Defense Criminal Investigative Service, and the Air Force Materiel Command Law Office Fraud Division.
Except for the conduct admitted in connection with the criminal agreement, the claims resolved by the civil agreement are allegations only, and there has been no determination of civil liability
Northrop Grumman Subsidiary Agrees to Pay $31.65 Million for Overbilling U.S. Air Force in Civil and Criminal SettlementsRead the Press Release
NEWS RELEASE SUMMARY – November 2, 2018
SAN DIEGO – Northrop Grumman Systems Corporation (“NGSC”), a subsidiary of the Northrop Grumman Corporation, with offices in San Diego, California, agreed today to pay a total of $31.65 million to settle civil and criminal investigations into fraud arising out of its Battlefield Airborne Communications Node (“BACN”) and Dynamic Re-tasking Capability (“DRC”) contracts with the United States Air Force. NGSC agreed to pay $27.45 million to settle civil allegations that it violated the False Claims Act by overstating the number of hours its employees worked on the BACN and DRC contracts with the United States Air Force. Additionally, NGSC agreed to forfeit $4.2 million in a separate agreement to resolve a criminal investigation into fraudulent billing on the BACN contract. In exchange for admitting its employees’ misconduct, making full restitution, and agreeing to cooperate in the ongoing criminal investigation, no criminal charges will be filed against NGSC.
(see the agreement HERE )
In the agreement resolving the criminal investigation of NGSC, the company admitted that its employees deployed to an air base in the Middle East defrauded the Air Force by overbilling time charged to the BACN contract. Specifically, from January 2011 to October 2013, NGSC employees charged exactly 12 or 13.5 hours per day, seven days a week, despite the fact that the employees were not working those hours. NGSC admitted that its employees billed time to the BACN contract when its employees were not working and engaged in leisure activities, such as golfing, skiing, visiting local amusement parks, going out to eat or drink, shopping, and enjoying various amenities at the five-star hotels where the employees were housed.
By inflating their time, the employees working on the BACN contract personally profited and were paid thousands of dollars that they did not earn. In an email, one NGSC employee summed up the billing practices by saying that they “work[ed] about 6-8 hours and charge[d] 13.” NGSC admitted that its employees working on the BACN contract overbilled the United States by more than $5 million at one site alone.
“Federal contracts are not a license to steal from the U.S. Treasury,” said U.S. Attorney Adam Braverman. “DOJ is firmly committed to vigilantly weeding out abuse and will swiftly pursue all available remedies when egregious fraud occurs.”
“Air Force OSI’s Office of Procurement Fraud is dedicated to protecting the taxpayer’s interests worldwide while safeguarding the needs of the warfighter. This investigation is a testament to AFOSI’s global reach, and to our partnerships with DCIS and the FBI which allowed us to meticulously unravel this international conspiracy to defraud the U.S. Air Force,” stated Jason T. Hein, Special Agent in Charge of the Air Force OSI Office of Procurement Fraud, Detachment 6.
“We are committed to ensuring the funds of the American people are used for their intended purpose,” stated John Brown, Special Agent in Charge of the San Diego Field Office - Federal Bureau of Investigation. “This is another example of the incredible partnerships between the FBI and our Department of Defense counterparts. Together, uncovering this immense fraud against the government and returning the funds to the American taxpayer is vitally important to ensuring our military receives the honest services they are due.”
Chris Hendrickson, Special Agent in Charge of the Western Field Office, Defense Criminal Investigative Service, said: “This settlement demonstrates how defense contractors will be held accountable for making false claims to the United States. DCIS is committed to working with its law enforcement partners and the Department of Justice to aggressively investigate such matters, and the recovered funds can now be properly used to support the men and women of our Armed Forces.”
Except for the conduct admitted in connection with the criminal agreement, the claims resolved by the civil agreement are allegations only, and there has been no determination of civil liability.
The civil investigation was handled by Assistant U.S. Attorneys Joseph Price and Douglas Keehn and Benjamin C. Wei, Senior Trial Counsel, Fraud Section, Civil Division, Department of Justice.
The criminal investigation was handled by Assistant U.S. Attorneys Michelle L. Wasserman, Billy Joe McLain, Mark W. Pletcher, and Phillip L.B. Halpern.
AGENCIES
Air Force Office of Special Investigations
Defense Criminal Investigative Service
Federal Bureau of Investigation
Defense Contract Audit Agency
Air Force Materiel Command Law Office Fraud Division
Northern Floridians May Report 2018 Election Violations to U.S. Attorney's OfficeRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Christopher P. Canova will lead the efforts of the United States Attorney's Office, Northern District of Florida, in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election. As District Election Officer, United States Attorney Canova is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses, in consultation with Justice Department Headquarters in Washington.
To respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Canova will be on duty as District Election Officer in the Northern District of Florida while the polls are open. He can be reached at 850-942-8430.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached at 904-248-7000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or 202-307-2767, by fax at 202-307-3961, by e-mail at [email protected], or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Christopher P. Canova said, “The freedom to exercise the right to vote is the cornerstone of American democracy. Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division. The Department of Justice will act aggressively to ensure that those who are entitled to vote may do so and that those who seek to corrupt the integrity of the process are brought to justice.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
New Zealand Man Sentenced to Five Years for Transporting Child PornographyRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Bobby Mataara Owens, 41, of Turangi, New Zealand, was sentenced on Wednesday in U.S. District Court by Chief Judge Nancy Torresen to five years in prison and by ten years of supervised release for transporting child pornography. Owens pleaded guilty on September 1, 2017.
According to court records, in December 2016, a federal agent in Maine was investigating the sharing of child pornography over the internet. The agent chatted online with Owens, who sent the agent several images of minors engaged in sexually explicit conduct. Further investigation revealed that Owens was using an IP address assigned to a residence in Valley Village, California. A federal search warrant was obtained for the residence and executed later the same day. Owens was present at the residence, and admitted to investigators that he had sent the images to the agent earlier in the day.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the FBI and the Los Angeles, California Police Department. The 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. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mississippi Man Sentenced to 46 Months in Federal Prison for Possession with Intent to Distribute Synthetic CannabinoidsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Judge William H. Steele sentenced Clarence Benard Willis on September 18, 2018 to serve a term of imprisonment of 46 months followed by 3 years of supervised release for the possession with the intent to distribute FUB-AMB in violation of 21 USC § 841(a)(1) 813, 802(32)(A). The defendant previously plead guilty on July 25, 2018.
On September 13, 2016, Homeland Security Investigations along with the United States Postal Service began an investigation of Willis for the illegal importation of Synthetic Cannabinoids, a Schedule I controlled substance, into the United States from China. On the date of the incident, a package destined for Gulfport, MS came through the United States Postal Services in Mobile, Alabama. The package was an international parcel coming from China. The package was suspicious and was opened by a Special Agent with Homeland Security Investigations (HSI) under his extended border search authority.
The package was found to contain approximately one kilogram of a substance called FUB-AMB, a controlled substance analogue of AB-FUBINACA, a Schedule I controlled substance. Controlled substance analogues are not scheduled controlled substances. However, Title 21 of the United States Code states that if a substance that is not a listed controlled substance has a chemical structure of which is substantially similar to the chemical structure of a controlled substance and has a stimulant, depressant, or hallucinogenic effect on the central nervous system that is substantially similar to or greater than the stimulant, depressant, or hallucinogenic effect on the central nervous system of a controlled substance, and it intended for human consumption, it can be charged as a controlled substance analogue. The statute essentially prevents rogue chemists from slightly tweaking the chemical structure of a controlled substance and then claiming the substance is not a controlled substance and thus not illegal to sell.
United States Attorney Moore stated that synthetic cannabinoids, often shipped into the United States from China, are typically sprayed with a variety of chemicals. The chemicals can cause a severe physical reaction, and even death, when ingested by the user. Often times the users have no idea what dangerous chemicals they are ingesting. Moore further stated that his office would continue to aggressively prosecute individuals and organizations that import into the United States and distribute these dangerous analogues. Moore added that foreign shippers of these dangerous drugs are also not necessarily beyond the reach of his office if sufficient evidence is developed and the extradition process is successful.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, the United States Postal Service, and the Mobile County Sheriff’s Office Narcotics Unit. The Drug Enforcement Administration Laboratory was also extremely helpful in providing experts that were prepared to testify that FUB-AMB is a controlled substance analogue of AB-FUBINACA, a Schedule I controlled substance. 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. AUSA May commended all the investigators and specifically Dr. Terrence Boos the Section Chief of the Drug Chemical Evaluation Section of the Drug Enforcement Administration laboratory for his support in providing expert advice and expert witnesses for the case.
Mission Man Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting In Serious Bodily Injury.
Francis Dog Soldier, age 36, was indicted on September 11, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 25, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 4, 2018, Dog Soldier assaulted an individual with shod feet with the intent to do bodily harm, and the assault resulted in serious bodily injury.
The charges are merely accusations and Dog Soldier is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Dog Soldier was released pending trial. A trial date has not been set.
Mission Man Charged with Burglary and LarcenyRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Third Degree Burglary and Larceny.
Preston White Feather, age 22, was indicted on June 12, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 26, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 9, 2018, in Mission, White Feather unlawfully entered Todd County High School and stole property valued at over $1,000.
The charges are merely accusations and White Feather is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
White Feather was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Minkler announces arrests in Project Safe Neighborhoods InitiativeRead the Press Release
Indianapolis - United States Attorney Josh Minkler and Trevor Velinor, ATF Special Agent in Charge of the ATF Columbus Field Division today announced the results of an anti-violence initiative called Project Safe Neighborhoods (PSN). The goal of PSN, working together with federal, state and local law enforcement is to reduce the number of criminal homicides and non-fatal shootings in the Evansville area.
Focusing our law enforcement resources on the most violent in our society will reduce crime, save lives and help make our neighborhoods safer,” said Minkler. “Those who choose to terrorize Southwestern Indiana with gun violence should know ahead of time, federal law enforcement is watching and will respond with federal resources.”
The United States Attorney Evansville Division team led by Deputy Chief Todd Shellenbarger has demonstrated steeled determination to target the area’s most violent and habitual gun-toting felons for federal prosecution. This renewed focus has yielded over 33 federal firearms cases in 2018, 22 of which were based in the Evansville PSN district. These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Evansville Police Department, the Vanderburgh County Sheriff’s Department, the Indiana State Police, and the Vanderburgh County Prosecutor’s Office.
In support of the PSN program, and to assist and strengthen the efforts of local enforcement to reduce violent crime in Evansville, the ATF sent a surge of resources to Evansville between July 24 and September 24, 2018. During this time period, five additional ATF agents and Task Force Officers were assigned to the Evansville ATF office. These additional agents and officers teamed up with Evansville police officers to aggressively pursue firearms cases in Evansville. The surge resulted in the arrest and prosecution of numerous suspects for federal and state charges.
Federal defendants facing firearm and drug-related charges as a result of the surge include:
Charles C. Baughn, 35, Vincennes, Indiana
Gary Bentley Jr., 51, Evansville, Indiana
Joseph Byers Jr., 35, Boonville, Indiana
Jamal Christopher, 34, Norcross, GA
Kurtis A. Evans, 42, Vincennes, Indiana
Austin G. Greene, 19, Bedford, Indiana
Justin Helsley, 27, Newburgh, Indiana
Samuel King, 35, Evansville, Indiana
Terry W. Morris II, 19, Cloverdale, Indiana
Barry Scott, a/k/a Barron Scott, 58, Vincennes, Indiana
Marvin Robinson, 46, Jeffersonville, Indiana
William K. Thompson 31, Evansville, Indiana
“These arrests represent the culmination of countless hours of investigative work with our partners at the Evansville Police Department, the Vanderburgh County Sheriff’s Office, the Indiana State Police, the United States Attorney’s Office, and the Vanderburgh County Prosecutor’s Office,” stated Trevor Velinor, Special Agent in Charge for ATF’s Columbus Field Division. “We have forged and strengthened our cooperative efforts with the goal of removing violent individuals from the streets and returning our community to its rightful owners, those living, working, and raising families there. These arrests represent just the first step in that continuing work.”
“We take pride in having great relationships with other law enforcement agencies, including our Federal Partners. When we all work together, it makes our communities much safer. This latest effort only reinforces what can be accomplished when we all work together.”
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who engage in violent crime using firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.3.
Mexican National Convicted of Being A Previously Removed Alien Found in the United StatesRead the Press Release
FRESNO, Calif. — After a three–day trial, a federal jury found Rolando Felix-Carrazco, 45, of Tulare County, guilty of one count of being a Deported Alien Found in the United States, United States Attorney McGregor W. Scott announced.
According to evidence presented at trial, Felix-Carrazco was born in Mexico and entered the United States illegally. He was removed in February 2015 and again in July 2015. Felix-Carrazco returned to the United States without permission to reenter and was encountered by Tulare County Sheriff’s deputies in March 2018.
This case was the product of an investigation by Homeland Security Investigations. Assistant United States Attorneys Laura D. Withers and Kathleen A. Servatius are prosecuting the case.
Felix-Carrazco is scheduled to be sentenced by U.S. District Judge Drozd on February 4, 2019. Felix-Carrazco faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Memphis Man Sentenced to 360 Months in Federal Prison for Sex Trafficking ConvictionsRead the Press Release
Memphis, TN – After a three-day jury trial in federal court in July 2018, Antonio Hawkins, 41, was convicted of multiple counts of sex trafficking. Today, he was sentenced to 360 months in federal prison on five counts related to sex trafficking, including sex trafficking of a minor victim and sex trafficking by force, fraud, and coercion. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence.
According to information presented in court, in April 2016, Antonio Hawkins took three women from New Orleans to Houston to put the women out on the prostitution track. While in Houston, Hawkins picked up a fifteen-year-old runaway, and put her on the track as well. Hawkins subsequently brought them to Memphis to work. All of the women, including the minor (who is now seventeen), testified at trial that Hawkins threatened to, and did, use violence to keep them from leaving him. The women testified that Hawkins struck them, pointed a gun at them and fired warning shots, and once even used a hot hair iron to intimidate the women into doing as he instructed.
U.S. Attorney D. Michael Dunavant said: “Human trafficking of minors and adults for commercial sex purposes is an unconscionable crime that must be met with severe consequences. We commend the FBI for their outstanding investigation of these heinous crimes, and we are pleased to achieve justice for the victims in this disturbing case.”
On Friday, November 2, 2018, U.S. District Judge Sheryl H. Lipman sentenced Hawkins to 360 months imprisonment.
This case was investigated by the Federal Bureau of Investigation as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 PSC, please visit http://www.justice.gov/psc.
Assistant U.S. Attorneys Kasey Weiland and Deb Ireland prosecuted this case on the government’s behalf.
McKeesport Man Sentenced to 5+ Years in Prison for Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH, PA – A resident of McKeesport, Pennsylvania, has been sentenced in federal court to five years and three months in prison, followed by five years’ supervised release, on his conviction of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Isaiah Pridgen, 21.
According to information presented to the court, Pridgen possessed with the intent to distribute a quantity of heroin, a Schedule I controlled substance, and possessed a firearm in furtherance of said drug trafficking crime. On November 19, 2016, McKeesport police officers stopped a car in which Pridgen was a passenger. Officers ordered Pridgen out of the vehicle, and as he exited, Pridgen forcefully shoved an officer and fled. In pursuit, officers saw Pridgen throw an object later identified to be a loaded .45 caliber Taurus pistol. Pridgen was eventually apprehended, and officers located 100 stamp bags of heroin in his pocket.
Prior to imposing sentence, Judge Fischer stated that the defendant’s actions in dealing opiates is "deadly as any pistol" and that those actions created a "substantial risk of harm to the community." Judge Fischer noted that the defendant had a significant juvenile criminal history for Assault, Theft, Guns and Drugs, making the current indictment at the age of 19 even more serious. Judge Fischer praised the support of the defendant’s family and friends, noted that violating her federal sentence could have "big consequences," and told the defendant to "make good on this last chance."
At sentencing, Assistant United States Attorney Ross E. Lenhardt argued that the dollar sign tattoo on the defendant’s face and his lack of prior employment showed that the defendant’s clear motive for dealing drugs was greed. Assistant United States Attorney Heidi M. Grogan was the lead prosecutor on this matter for the government. This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania Office of Attorney General, and the McKeesport Police Department for the investigation leading to the successful prosecution of Pridgen.
Manhattan U.S. Attorney Announces Settlement with Hudson Valley Credit Union for Illegally Repossessing Service Members’ CarsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John Gore, Acting Assistant Attorney General, announced today that Hudson Valley Federal Credit Union (“Hudson Valley”) has agreed to pay $95,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (“SCRA”) by repossessing vehicles owned by SCRA-protected service members without first obtaining the required court orders. Under the agreement, Hudson Valley has agreed to pay $65,000 to compensate seven service members whose cars it unlawfully repossessed and will pay a civil penalty of $30,000 to the United States.
This Office launched an investigation into Hudson Valley’s repossession practices after learning of two private lawsuits filed in the Southern District of New York. In both lawsuits, the plaintiffs alleged that Hudson Valley violated the SCRA by repossessing the plaintiffs’ vehicles after plaintiffs had entered military service. This Office’s subsequent investigation identified seven additional violations and revealed that, prior to August 2014, Hudson Valley did not have any written policies or procedures that addressed the SCRA’s protections against non-judicial auto repossessions.
Hudson Valley, headquartered in Poughkeepsie, New York, is one of the largest credit unions in the country, and has committed to protecting service members’ rights in the future.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Protecting service members is a high priority for this Office and the country. We are pleased that Hudson Valley has taken these remedial steps, and this Office will continue to protect the rights of men and women in uniform.”
Acting Assistant Attorney General John Gore said: “Financial institutions must recognize and honor their responsibilities to our men and women in uniform. Our nation depends upon the selfless devotion and sacrifice of our service members and we must ensure that they receive all rights and protections afforded to them by law.”
The agreement requires Hudson Valley to provide $10,000 in compensation to each of the six affected service members, plus any lost equity in the vehicle with interest. An additional service member, whose vehicle was repossessed but returned within 24 hours, will receive $5,000. Hudson Valley has also taken steps to repair the credit of the affected service members.
The agreement resolves the claims and causes of action asserted in the United States’ Complaint against Hudson Valley filed in the U.S. District Court for the Southern District of New York.
For more information about the United States’s SCRA enforcement efforts, please visit www.servicemembers.gov. Service members and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at www.legalassistance.law.af.mil/content/locator.php.
This case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorney Ellen Blain is in charge of the case.
Manhattan U.S. Attorney Announces $2 Million Settlement of Health Care Fraud Claims Against Metropolitan Retina Associates, Inc., and Dr. Kenneth FelderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge for the New York Office of Inspector General of the U.S. Department of Health and Human Services (“HHS-OIG”), announced today a settlement of a civil fraud lawsuit against DR. KENNETH S. FELDER (“FELDER”) and METROPOLITAN RETINA ASSOCIATES, INC. (“METROPOLITAN RETINA”). The settlement resolves claims under the False Claims Act alleging that FELDER and METROPOLITAN RETINA billed Medicare and Medicaid for (1) substandard fluorescein angiography tests that were of such poor quality that they lacked all diagnostic value and were effectively worthless; and (2) ophthalmic ultrasounds that were either not performed or lacked any supporting documentation. Under the terms of the settlement approved by U.S. District Judge Alison J. Nathan, FELDER and METROPOLITAN RETINA admitted and accepted responsibility for their conduct and agreed to pay $2,064,559 to the United States.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Dr. Kenneth Felder and Metropolitan Retina defrauded taxpayers when they billed Medicare and Medicaid for diagnostic tests that were shoddy, undocumented, and sometimes not performed at all. This settlement sends a strong message that such conduct will not be tolerated.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “The irresponsible behavior by Metropolitan Retina Associates and Dr. Kenneth Felder compromised the integrity of the Medicare and Medicaid programs, and wasted millions of taxpayer dollars. HHS-OIG will continue to ensure that providers who do business with federally funded health care programs do so in an honest fashion.”
METROPOLITAN RETINA is an ophthalmology practice that is wholly owned by FELDER, with offices in Brooklyn and Manhattan. As part of the settlement, FELDER and METROPOLITAN RETINA admit, acknowledge, and accept responsibility for the following conduct:
- FELDER and METROPOLITAN RETINA frequently submitted claims to Medicare and Medicaid for fluorescein angiograms that lacked any diagnostic or medical value because the images were distorted and/or were taken from angles that made it impossible to evaluate the patients’ conditions.
- Medicare or Medicaid would not have paid for these procedures had they known that the fluorescein angiograms lacked any diagnostic or medical value.
- FELDER and METROPOLITAN RETINA frequently submitted claims to Medicare and Medicaid for ultrasounds of the eye that either were not performed or were not supported by any medical record documentation.
- Medicare and Medicaid would not have paid for these ultrasounds had they known that the ultrasounds either were not performed or were not supported by documentation in the medical records.
- As a result of billing for the medical procedures described above, FELDER and METROPOLITAN RETINA received substantial reimbursement from Medicare and Medicaid to which they were not entitled.
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Mr. Berman thanked the Office of the Inspector General for HHS for its assistance.
The case is being handled by the Office’s Civil Division. Assistant U.S. Attorneys Brandon Cowart and Jacob M. Bergman are in charge of the case.
Man Pleads Guilty to Robbery of Metairie BankRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced yesterday that STEPHEN J. SCOTT, age 31, of New Orleans, Louisiana, pleaded guilty as charged to committing the robbery of the First American Bank & Trust at 1800 Veterans Memorial Boulevard in Metairie, Louisiana, on April 9, 2018, in violation of Title 18, United States Code, Section 2113(a).
Bank robbery carries a maximum sentence of 20 years in the Bureau of Prisons, a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100. The Court will sentence SCOTT on January 31, 2019.
On that date, SCOTT entered the bank, passed a demand note to the teller, and implied that he was in a possession of a weapon. The teller handed over $3,400 to SCOTT, who fled the location. Members of the Jefferson Parish Sheriff’s Office were able to match a fingerprint taken from the bank to SCOTT. Sheriff’s Office members then compared the surveillance footage from the robbery to other known photos of SCOTT to confirm his identity.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation’s Violent Crime Task Force and officers with the Jefferson Parish Sheriff’s Office. Assistant U.S. Attorney Myles Ranier is handling the prosecution.
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Man Indicted in Connection with Missing Warhol PaintingsRead the Press Release
BOSTON – A federal grand jury indicted a Lynn man on Wednesday, Oct. 31, 2018, in connection with taking and attempting to sell two Warhol paintings on eBay.
Brian R. Walshe, 43, was indicted on one count each of wire fraud, interstate transportation for a scheme to defraud, possession of converted goods, and unlawful monetary transaction. In May 2018, Walshe was arrested and charged in a criminal complaint.
According to court documents, in early November 2016, a buyer found two Andy Warhol paintings for sale on eBay. The paintings were two of Warhol’s “Shadows,” a series of untitled, abstract canvas paintings from 1978. The original listing price for the paintings was $100,000. In the advertisement, the eBay seller included a picture of an invoice for the two Warhol Shadow paintings with Warhol Foundation numbers and a purchase price of $240,000.
It is alleged that the buyer believed the paintings were authentic and between Nov. 3 and 5, 2016, arranged with Walshe – the seller – to purchase the artwork outside of eBay for $80,000. Walshe and the buyer signed a contract which specified that the buyer had three days to terminate the contract and get a full refund if the buyer did not accept the artwork. On Nov. 7, 2016, the buyer’s assistant flew to Boston and met Walshe to retrieve the paintings, providing him with a cashier’s check for $80,000. According to bank records, the cashier’s check was deposited that day into an account that Walshe controlled, and $33,400 was subsequently withdrawn in the following 14 days. On Nov. 8, 2016, the buyer removed the paintings’ frames and found no Warhol Foundation authentication stamps and also noticed that the canvasses and staples looked new. When he compared the paintings to the photographs from the eBay listing, they did not look identical. The buyer concluded that the paintings he purchased from Walshe were not authentic. The buyer then repeatedly attempted to contact Walshe, who initially did not respond, and then made excuses for the delay in refunding the buyer’s money.
According to court documents, Walshe initially gained access to the paintings through a friend (the victim). Walshe was present when the victim first purchased a Warhol painting. Sometime after this purchase, the victim purchased the two Shadow paintings. Thereafter, while visiting the victim in South Korea, Walshe told the victim that he could sell some of the art for a good price. The victim agreed and let Walshe take the two Shadow paintings and other fine art pieces.
After Walshe took the items, the victim did not hear from Walshe and was unable to contact him. Eventually, the victim contacted a mutual friend, who met with Walshe and retrieved some of the art. On May 3, 2011, Walshe allegedly attempted to consign the Warhol paintings to a gallery in New York City, at which time he also had other art belonging to the victim. The gallery declined to accept the paintings because Walshe did not have a bill of sale.
The indictment alleges that Walshe converted the art from the victim and falsely offered the authentic Warhol paintings for sale on eBay, but delivered fake paintings to the buyer.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of interstate transportation for a scheme to defraud provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of possession of converted goods provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of unlawful monetary transaction provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. The Lynn Police Department provided assistance with the investigation. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Madison Woman Pleads Guilty to Making False StatementRead the Press Release
BIRMINGHAM – Today a Madison, Alabama woman pled guilty in federal court to making a false statement, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
XI QING YUN a/k/a Carolyn Xi, 52, entered her plea before U.S. District Judge Abdul K. Kallon. Xi was employed by the Army’s Aviation and Missile Research Development and Engineering Center at Redstone Arsenal, when she failed to disclose foreign contacts on a questionnaire for a national security position. She is scheduled for sentencing before Judge Kallon on February 21, 2019 in Huntsville.
“It is critical that people with a security clearance, or people applying for a security clearance, are upfront and honest regarding questions about foreign contacts and their background,” Town said. “A failure to be honest compromises the integrity of checks put in place to protect our national security.”
“Ms. Xi’s lack of candor not only called into question her reliability, trustworthiness, and ability to protect sensitive information, it also resulted in her prosecution,” Sharp said. Let this be a lesson to those seeking a position of trust with the United States—show you can be trusted by being truthful in your responses for a security clearance.”
The maximum penalty for making a false statement is 5 years in prison and a $250,000 fine.
FBI and Army Counterintelligence investigated the case, which Assistant U.S. Attorney Davis Barlow and Trial Attorney Scott Claffee, National Security Division are prosecuting.
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MS-13 Gang Member Sentenced for Illegally Possessing AmmunitionRead the Press Release
ALEXANDRIA, Va. – An admitted MS-13 gang member was sentenced today to 15 months in prison, followed by three years of supervised release, for possessing ammunition as a convicted felon.
According to court documents, Oscar Melendez, aka Creeper, 29, of Alexandria, possessed ammunition after having been convicted of multiple felonies involving possession of a controlled dangerous substance and credit card fraud. Law enforcement recovered the bullets from his residence while investigating crimes committed by the criminal gang MS-13. During a Mirandized interview, Melendez admitted to possessing the ammunition and to being a member of MS-13.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, and J. Thomas Manger, Montgomery County Chief of Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Maureen C. Cain prosecuted the case.
Mitigating MS-13’s presence in the National Capital Region is a joint effort between federal, state, and local law enforcement agencies. Several Department of Justice law enforcement components, to include the FBI’s Safe Streets Task Forces and Child Exploitation and Human Trafficking Task Forces, DEA, USMS, and ATF, along with the Department of Homeland Security, have dedicated significant resources to this effort.
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 are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-245.
Lyric Shooter Pleads GuiltyRead the Press Release
OXFORD – A Memphis, Tennessee man has pled guilty to federal firearms charges relating to his role in a shooting that occurred inside the Lyric Theater in Oxford, Mississippi on April 27, 2018. Desmond Bowen pleaded guilty yesterday to being a felon in possession of ammunition during the incident. The announcement regarding Bowen’s guilty plea was made by Oxford Police Chief Joey East, Joseph Frank, Supervisory Special Agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives in Oxford, and U.S. Attorney William C. Lamar.
Information presented at the change of plea hearing showed that Bowen attended a party at the Lyric Theater in April on Double Decker Weekend when a fight broke out inside the theater. Bowen fired a shot upward, which hit underneath the balcony, ricocheted and hit a patron. Officers collected a .25 auto caliber shell casing from the scene along with an attendee’s video, which depicted Bowen shooting a firearm.
U.S. District Judge Michael P. Mills in the Northern Judicial District of Mississippi accepted Bowen’s guilty plea to being a felon in possession of ammunition. Bowen faces a maximum sentence of ten years in prison. The sentencing is set for February 14, 2019.
Following the plea, U.S. Attorney William C. Lamar remarked, “We are committed to doing everything possible to keep our neighborhoods, towns and cities safe. We will always seek to hold accountable those individuals who threaten the safety and security of our communities and citizens through illegal and reckless conduct. The discharge of a weapon inside a crowded public place demonstrates a reckless disregard for the safety of others. In the instant case, the individual discharging the gun was prohibited by law from even possessing a firearm or ammunition. We will continue to work diligently with our local, state and federal partners to enforce the federal firearms laws and to see that individuals who violate those laws are held accountable.”
Oxford Police Chief Joey East also praised the cooperative efforts of those agencies involved in the investigation. “This is a perfect example of the collaborative efforts of state, federal and local law enforcement agencies working together for the common goal of public safety. Without the dedicated work of all of the agencies involved, Desmond Bowen would not have been brought to justice. It is always a good day when hard work pays off. The safety of citizens is our top priority, because it is not about who does what but about what was accomplished working together as a team,” stated East.
The investigation was the culmination of a joint Federal and State investigation into the shooting with the Oxford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by AUSA Clyde McGee.
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Lower Brule Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man convicted of Abusive Sexual Contact of a Person incapable of Consent was sentenced on October 29, 2018, by U.S. District Judge Roberto A. Lange.
Bates Hood, Jr., age 41, was sentenced to 36 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Hood was indicted by a federal grand jury on September 12, 2017. He pled guilty on August 2, 2018.
The conviction stemmed from an incident on January 31, 2016, when Hood knowingly engaged in, and attempted to engage in, sexual contact with an individual who he knew at the time was incapable of appraising the nature of conduct and physically incapable of declining participation.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Hood was immediately turned over to the custody of the U.S. Marshals Service.
Long Island Member of Outlaws Street Gang Sentenced to 20 Years’ Imprisonment for MurderRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Pedro Merchant, a member of the Outlaws street gang, was sentenced by United States District Judge Joseph F. Bianco to 20 years’ imprisonment for shooting and killing 17-year-old Dante Quinones during a dispute over gang allegiance. Merchant pled guilty in April 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.
“With today’s sentence Merchant is being held accountable for the senseless act he committed—taking a human life in the name of his gang, which also put an entire community on Long Island in danger,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, remains committed to dismantling all gangs on the streets of Long Island.”
“In the midst of the Outlaws’ declared war on a rival gang, Merchant shot and killed his victim and, at the same time, put the lives of innocent people in danger,” stated FBI Assistant Director-in-Charge Sweeney. “With today’s sentence, Merchant is held accountable for his crime, and the people of Hempstead and surrounding Long Island communities can rest assured he will no longer be a threat to their collective safety.”
“Nassau County is no place for the illegal and dangerous actions of gang members, in particular, Pedro Merchant,” stated NCPD Commissioner Ryder. “This defendant has placed innocent residents in harm’s way during the murder of a rival gang member. Today’s sentence should send a stern message that the collaborative efforts of law enforcement will prevail to keep our communities safe.”
On September 11, 2013, Merchant and fellow Outlaws gang members confronted Quinones on Dartmouth Street in Hempstead, to determine where Quinones’ allegiance lay between the Outlaws gang and their rivals, the Bloods. During the confrontation, Merchant pulled out a handgun and shot Quinones several times at close range, killing him.
In the wake of Quinones’ murder, a yearlong violent gang war with numerous shootings ensued between the Outlaws and the Bloods in Hempstead. Merchant was tried and acquitted of murdering Quinones in 2015 in a Nassau County trial marked by witness intimidation by Merchant’s associates. Following the acquittal, Merchant and six additional members and associates of the Outlaws and six members of the Bloods were charged federally in this district for their participation in the violent gang war. To date, the following individuals have been sentenced or pleaded guilty:
- Everett Brown, an associate of the Outlaws, was sentenced to 10 years’ imprisonment following his guilty plea to discharging a firearm during a crime of violence for his role in one of three shootings of rivals’ homes committed by the gang on August 19, 2014.
- Philip Saunders, a member of the Bloods, was sentenced to 12 years’ imprisonment following his guilty plea to discharging a firearm during a crime of violence for his role in a May 9, 2014 assault of a rival gang member.
- Khalil Brown and Naree Barnes, members of the Bloods, were each sentenced to 10 years’ imprisonment following their guilty pleas to discharging firearms during a crime of violence for shooting at a rival gang member on October 21, 2014.
- Billy McLen, a member of the Bloods, pled guilty to attempted murder in-aid-of racketeering and discharging a firearm during a crime of violence and is awaiting sentence. When sentenced, McLen faces a minimum of 10 years in prison and a maximum term of life.
- Alton Gore, also known as “A-Murder,” a leader of the Outlaws in Hempstead, pled guilty to assault in-aid-of racketeering and discharging a firearm during a crime of violence and is awaiting sentence. When sentenced, Gore faces a minimum of 10 years in prison and a maximum term of life.
- Jonathan Mayzick, a member of the Bloods charged with racketeering, conspiracy to murder and assault rival gang members with dangerous weapons and attempted murder and attempted assault with dangerous weapons, is awaiting trial.
The government’s case against Merchant is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann, Christopher Caffarone and Michael Maffei are in charge of the prosecution.
The Defendant:
PEDRO MERCHANT (also known as “Dro”)
Age: 25
Valley Stream, New YorkE.D.N.Y. Docket No. 16-CR-322 (S-1) (JFB)
Long Island Man Sentenced to 46 Months in Prison for Conspiracy to Distribute OxycodoneRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Terrance Belford was sentenced by United States District Judge Joanna Seybert to 46 months in prison following his guilty plea in May 2018 to conspiracy to distribute oxycodone, a Schedule II controlled substance. Belford was arrested in June 2017 for his participation in an oxycodone distribution ring active on Long Island.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Keith Kruskall, Acting Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, announced the sentence.
“Today’s sentence reflects the seriousness of Belford’s crime, using stolen prescription forms to feed the opioid epidemic and enrich himself, then blatantly discussing the price and availability of his illegal drugs on Facebook,” stated United States Attorney Donoghue. “This Office will continue to vigorously prosecute opioid dealers like the defendant.” Mr. Donoghue expressed his gratitude to all the alert and responsible pharmacists nationwide, including those in Enterprise, Alabama, whose reports of a suspicious prescription form presented by Belford were integral to the success of this prosecution.
“Today, my office will use social media and tweet about today’s sentencing, much like the defendant’s use of Facebook to broadcast his drug deals,” stated Acting Special Agent-in-Charge Kruskall. “DEA’s message is very clear- if you deal drugs, you go to jail. I commend the men and women on the LIDO—TDS and Eastern District of New York for their diligent work on this case and many others targeting opioid traffickers.”
According to court filings and facts presented during the plea proceeding, beginning in late 2016 and continuing into early 2017, Belford and his co-conspirators filled out stolen prescription forms and used them to obtain controlled substances, typically 30 milligram oxycodone tablets, which they then sold at a substantial profit. In December 2016, Belford attempted to fill one of the stolen prescriptions in Enterprise, Alabama, under a false name. An employee of the pharmacy refused to fill the prescription and called the local police, resulting in Belford’s arrest.
Belford boasted on Facebook of his ability to obtain multiple controlled substances unlawfully, including oxycodone, powder cocaine and crack cocaine. He also stated on Facebook that had he not been intercepted in Alabama, he would have profited $10,000 by reselling oxycodone acquired with fraudulent prescriptions.
This case was investigated by the DEA’s Long Island Tactical Diversion Squad comprising agents and officers of the DEA, Nassau County Police Department, Rockville Centre Police Department, Suffolk County Police Department, Port Washington Police Department and Internal Revenue Service.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney J. Matthew Haggans is in charge of the prosecution.
The Defendant:
TERRANCE BELFORD
Age: 36
Bellport, New YorkE.D.N.Y. Docket No. 17-CR-399 (JS)
Laurinburg Man Sentenced to 50 Months in Prison for Possession of A Firearm by A Convicted FelonRead the Press Release
GREENSBORO, N.C. – A Laurinburg man who fled from police into an occupied home was sentenced to federal prison today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
JERRY LEE ELLERBE JR. pleaded guilty on August 8, 2018, to possession of a firearm by a previously convicted felon. ELLERBE was sentenced byUnited States District JudgeWilliam L. Osteen Jr. to 50 months of imprisonment, followed by 3 years of supervised release.
On April 16, 2018, Laurinburg Police Sergeant Zachary Van Horn attempted to stop the car ELLERBE was driving, after seeing ELLERBE fail to observe a stop sign. ELLERBE did not stop when Sgt. Van Horn used his police blue lights and siren, and instead, took off at a high rate of speed, running through other stops signs and coming to a stop on a dead-end road. ELLERBE fled on foot into a wooded area near a residential neighborhood.
Sgt. Van Horn saw a woman outside a residence who told him that someone just ran inside her house. ELLERBE then came out of that house and was detained by police. Officers returned to the car from which ELLERBE fled and found a Glock .357 pistol on the driver’s seat, loaded with 15 rounds in the magazine and one round in the chamber. They also found marijuana, a digital scale, and pills.
ELLERBE had been convicted in Scotland County of felony possession with intent to sell and deliver marijuana, and was on supervised probation at the time he was encountered by Sgt. Van Horn.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Laurinburg Police Department, and prosecuted by Assistant United States Anand P. Ramaswamy for the Middle District of North Carolina.
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Knoxville Man Sentenced to 10 years in Federal Prison for Trafficking CocaineRead the Press Release
Memphis, TN – Melvin Bullock, 31, of Knoxville, Tennessee, has been sentenced to 10 years imprisonment for conspiracy to distribute 20 kilograms of cocaine and distribution of 20 kilograms of cocaine. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on September 25, 2017, Melvin Bullock was stopped for a traffic violation on I-40 by an agent with the West Tennessee Drug Task Force. During that stop, the agent became suspicious of Bullock after he gave several false answers to questions and presented a fake driver’s license. The agent utilized his canine, who alerted to the presence of narcotics in the back seat of Bullock’s vehicle. Upon further search, 20 individually wrapped bundles of cocaine were found. The total weight of the cocaine was over 20 kilograms, about 50 pounds. The investigation revealed that the drugs came from over the border in Mexico to Houston, where the defendant retrieved them to transport them through Memphis en route to East Tennessee.
On October 31, 2018, U.S. District Court Judge Sheryl H. Lipman sentenced Bullock to 120 months in federal prison.
U.S. Attorney D. Michael Dunavant said, "Interstate 40 is a major drug trafficking corridor into and through West Tennessee. Disrupting drug trafficking organizations and interdicting the flow of poisonous drugs into our communities is a top priority of the U.S. Attorney’s Office, and we work with our federal, state, and local law enforcement partners to remain vigilant in the fight against foreign and domestic drug suppliers. Drug trafficking is not a victimless crime, and this significant federal sentence sends a message that such criminal activity will not be tolerated."
This case was investigated by the West Tennessee Drug Task Force, an extension of the Shelby County District Attorney General’s Office and the Drug Enforcement Administration (DEA).
Special Assistant U.S. Attorney Joseph Griffith prosecuted this case on behalf of the government.
Justice Department Reaches Settlement with Hudson Valley Federal Credit Union for Illegally Repossessing Servicemembers’ CarsRead the Press Release
The Justice Department today announced that Hudson Valley Federal Credit Union has agreed to pay $95,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing vehicles owned by SCRA-protected servicemembers without first obtaining the required court orders. Under the agreement, Hudson Valley has agreed to pay $65,000 to compensate seven servicemembers whose cars it unlawfully repossessed and will pay a civil penalty of $30,000 to the United States.
The Department launched an investigation into Hudson Valley’s repossession practices after learning of two private lawsuits filed in the Southern District of New York. In both lawsuits, the plaintiffs alleged that Hudson Valley violated the SCRA by repossessing the plaintiffs’ vehicles after plaintiffs had entered military service. The Department’s subsequent investigation identified seven additional violations and revealed that, prior to August 2014, Hudson Valley did not have any written policies or procedures that addressed the SCRA’s protections against non-judicial auto repossessions.
Hudson Valley, headquartered in Poughkeepsie, New York, is one of the largest credit unions in the country.
“Financial institutions must recognize and honor their responsibilities to our men and women in uniform,” said Acting Assistant Attorney General John Gore. “Our nation depends upon the selfless devotion and sacrifice of our servicemembers and we must ensure that they receive all rights and protections afforded to them by law.”
“Protecting service members is a high priority for this Office and the country,” said U.S. Attorney Geoffrey S. Berman. “We are pleased that Hudson Valley has taken these remedial steps, and this Office will continue to protect the rights of men and women in uniform.”
The agreement requires Hudson Valley to provide $10,000 in compensation to each of the six affected servicemembers, plus any lost equity in the vehicle with interest. An additional servicemember, whose vehicle was repossessed but returned within 24 hours, will receive $5,000. Hudson Valley has also taken steps to repair the credit of the affected servicemembers.
The agreement resolves the claims and causes of action asserted in the United States’ Complaint against Hudson Valley filed in the United States District Court for the Southern District of New York. Hudson Valley will contact servicemembers to be compensated through this settlement in the upcoming months and will distribute payments at no cost to servicemembers.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the Department has obtained over $467 million in monetary relief for servicemembers through its enforcement of the SCRA. For more information about the Department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/content/locator.php.
Jury Convicts Sedalia Man of Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Sedalia, Mo., man was convicted by a federal trial jury today of his role in a conspiracy to distribute methamphetamine and prescription opioids.
Jackie R. Shelledy, 56, was found guilty of the charge contained in an Aug. 29, 2018, federal indictment.
Evidence introduced during the trial indicated that Shelledy, a member of the Galloping Goose Motorcycle Club, sold methamphetamine and prescription pills to co-defendant Teresa A. Wolfe, 53, of Sedalia. Wolfe then distributed the illegal drugs to other individuals. Shelledy had also purchased methamphetamine from Wolfe.
An undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives made a series of undercover purchases of methamphetamine as well as some prescription pills from Wolfe.
A search warrant was executed at Shelledy’s residence on Feb. 13, 2018. Officers seized drug paraphernalia and a bottle of prescription pills in someone else’s name.
Wolfe and co-defendants Joseph E. Whitlow, 42, of Sedalia, and James “Manny” Smith, 55, of Clinton, Mo., have pleaded guilty to their roles in the drug-trafficking conspiracy that lasted from Jan. 1, 2015, to Feb. 14, 2018. Wolfe also pleaded guilty to 14 additional counts related to distributing methamphetamine. Whitlow also pleaded guilty to being a felon in possession of a firearm.
Co-defendant Randall L. Rozier, 56, of Sedalia, pleaded guilty to being an illegal drug user in possession of firearms. Rozier was in possession of seven firearms when he was stopped by a Sedalia police officer for a traffic violation.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for four and a half hours before returning the guilty verdict to U.S. District Judge Roseann Ketchmark, ending a trial that began Monday, Oct. 29, 2018.
Under federal statutes, Shelledy is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Edwards and Emily A. Morgan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Johnstown Pharmacist Charged in 109-Count Indictment with Illegally Filling Bogus Prescriptions and then Dispensing the DrugsRead the Press Release
PITTSBURGH, PA - A Johnstown, Pa. pharmacist has been indicted by a federal grand jury in Pittsburgh on charges of dispensing and distributing controlled substances and conspiring to distribute and dispense controlled substances, United States Attorney Scott W. Brady announced today.
The 109-count indictment, returned on Oct. 30, named Joseph M. Martella, 53, of Johnstown, Pa.
According to the indictment presented to the court, Martella owned and operated Martella’s Pharmacy located on Franklin Street in Johnstown. The indictment alleges that Martella, a pharmacist, conspired with Dr. Peter James Ridella, who previously pleaded guilty, and with an individual known as "J.R.", to create and submit unlawful prescriptions for oxycodone; oxycodone and acetaminophen, also known as Percocet; oxymorphone, also known as Opana; morphine sulfate, also known as MS Contin and hydrocodone and acetaminophen, also known as Vicodin, and then unlawfully dispensed those controlled substances to other persons.
The law provides for a maximum per count sentence of 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Johnstown Felon Sentenced to Nearly 4 Years in Prison for Illegal Gun PossessionRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa. has been sentenced in federal court to three years and 10 months in prison and three years’ supervised release on his conviction of unlawful possession of a firearm by a convicted felon, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Anthony Rodney Edwards, 31.
According to information presented to the court, on March 15, 2018, Edwards was found in possession of a loaded Norinco .38 caliber pistol. On Mar. 31, 2017, Edwards was convicted in Cambria Co., Pa., of firearms not to be carried without a license, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the United States Marshals Service for the investigation that led to the successful prosecution of Edwards.
Jamestown Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Beau K.C. Jones, 34, of Jamestown, NY, who was convicted of conspiracy to possess with intent to distribute, and distribution of, 50 grams or more of methamphetamine, was sentenced to serve 100 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura Higgins, who is handling the case, stated that the defendant was arrested on December 1, 2016, along with his brother Matthew S. Jones, after a shipment of more than 360 grams of methamphetamine was delivered, via the U.S. mail, to the brothers at Matthew S. Jones’ residence at 70 Colfax in Jamestown. Shortly after the delivery, Beau K.C. Jones was arrested during a car stop by police and the parcel containing the methamphetamine was discovered in the backseat of his vehicle. Matthew S. Jones was arrested later that day during a separate car stop. A safe was found in the trunk of his car containing an additional quantity of approximately 80 grams of methamphetamine.
Matthew S. Jones was previously convicted and also sentenced to serve 100 months in prison.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; and the Jamestown Police Department, under the direction of Chief Harry Snellings.
# # # #Jamaican Man Sentenced for International Drug Trafficking ConspiracyRead the Press Release
RICHMOND, Va. – A Jamaican man was sentenced today to 87 months in prison for his role in transporting 15 kilograms of cocaine from South Carolina to Virginia, as a drug courier for a Panamanian drug trafficking organization (DTO).
According to court documents, in February 2016, Oraine Lawson, 26, and a co-conspirator traveled from Brooklyn to Charleston, South Carolina, for the purpose of receiving a shipment of cocaine. On the same day, law enforcement intercepted 15 kilograms of cocaine on a commercial shipping vessel at the Port of Charleston sent by the Panamanian DTO. The next day, Lawson obtained a bag containing 15 kilograms of cocaine in Charleston from a co-conspirator while under surveillance of law enforcement. Upon taking possession of the cocaine, Lawson and his co-conspirator boarded a commercial bus line and traveled to the Eastern District of Virginia, where law enforcement ultimately executed a drug interdiction operation. During the stop of the bus, law enforcement surveillance observed Lawson’s co-conspirator hide the bag containing the 15 kilograms of cocaine under a seat inside the bus. Shortly thereafter, law enforcement officers seized the bag containing the 15 kilograms of cocaine.
This case was investigated as part of the Organized Crime and Drug Enforcement Task Force (OCDETF) Brother’s Grimm. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Robert Murphy, Special Agent in Charge, Drug Enforcement Administration-Atlanta Division, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Christopher Healy, Acting Deputy Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Charlotte, Colonel Gary T. Settle, Superintendent of Virginia State Police, and Humberto I. Cardounel, Jr., Chief of Henrico County Police, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorneys Erik S. Siebert and Peter S. Duffey prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-108.
Jackson Man Sentenced to 360 Months in Federal Prison on Conspiracy to Distribute Methamphetamine and for Being a Felon in Possession of FirearmsRead the Press Release
Jackson, TN – Stephen Williams, 30, has been sentenced to 360 months imprisonment on federal charges of conspiracy to distribute 50 grams or more of actual methamphetamine and being a felon in possession of firearms. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
This is the latest sentencing in a case involving multiple defendants including Williams, Bernard Cooper, Courtney Cooper, Robert Newsome, Brandon Weddle, Morgan Bond, and Ronricus Chapman on charges of conspiracy to distribute methamphetamine.
According to information presented in court, on December 20, 2015 officers stopped Williams in a silver Chevrolet Impala. Williams stepped out of the vehicle for questioning and officers found a firearm inside. Williams attempted to flee back to his car and punched an officer in the face during a physical altercation. Williams re-entered the vehicle to flee and dragged an officer 25 yards before crashing into a ditch.
Williams tried to flee on foot after crashing. Officers pursued him for 50 yards before apprehending him. The officers continued the search of the car and found a Glock .40-caliber pistol loaded with 15 rounds of ammunition and a 12-gauge shotgun with a modified stock and barrel loaded with 24 rounds of ammunition. When transporting Williams to the Criminal Justice Complex for processing, he again assaulted an officer and threatened to kill him and his family upon release from jail.
U.S. Attorney D. Michael Dunavant said, "Methamphetamine continues to destroy individuals, families, and communities in West Tennessee. This defendant’s lawlessness includes distribution of meth, possession of firearms, and violent encounters with law enforcement. This is exactly the type of armed and violent drug trafficker that deserves a 30-year sentence, and we are happy to hold him accountable. Williams has sowed addiction and violence into the Jackson community, and now he will reap the consequence of a long prison sentence."
During his guilty plea, Williams was held accountable for at least 1.5 kilograms but less than 4.5 kilograms of actual methamphetamine.
On October 30, 2018, U.S. District Court Senior Judge Thomas Anderson sentenced Williams to 360 months in federal prison followed by 5 years supervised release.
This case was investigated by the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Madison County Sheriff’s Department.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on the government’s behalf.
Jackson Man Pleads Guilty Under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss - Julian Miller, 51, of Jackson, pled guilty today before United States District Judge Daniel P. Jordan III to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On November 22, 2017, the Jackson Police Department executed a search warrant at a home in Jackson, Mississippi. While inside, law enforcement discovered that Julian Miller, a convicted felon, had a firearm in his possession. Miller has several previous felony convictions, including convictions for armed robbery and for sales of crack cocaine near schools.
Miller will be sentenced by Judge Jordan on February 8, 2018 at 9:00 a.m. and faces a maximum penalty of life in prison and a $250,000 fine.
The case was investigated by the Jackson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Kristi H. Johnson.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Illinois Motor Vehicle Employee Known as "the Plate Plan" Sentenced for Vehicle Registration Fraud SchemeRead the Press Release
St. Louis, MO – Melvin Harmon was sentenced to 33 months incarceration and ordered to pay restitution in the amount of $119,359.92 for conspiracy to defraud the United States and mail fraud by assisting Missouri residents in registering their cars in Illinois.
According to evidence at trial, between January 1, 2015 and December 20, 2016, Melvin Harmon was employed at a Granite City, Illinois office registering vehicles for the State of Illinois Secretary of State. He used his employment to assist Missouri residents in obtaining fraudulent motor vehicle registrations for others in exchange for a fee. Some of the Missouri residents learned of his services when they saw flyers advertising Harmon as “The Plate Man.”
In March 2016, investigators with the Illinois Secretary of State discovered that Harmon had been charging Missouri residents $350.00 to $700.00 in order to fraudulently register their cars in Illinois. Doing so enabled the Missouri residents to evade payment of Missouri taxes. In addition, Harmon altered the price of the vehicles in order to reduce any payments that would be paid to the State of Illinois as a result of the fraudulent registration. The alteration increased the amount he profited through the scheme. The State of Missouri lost in excess of $119,359.92 in sales tax revenue due to the fraudulent conduct. The precise loss of personal property tax income to the State of Missouri and local municipalities has not been determined.
Harmon, 40, Belleville, IL, was found guilty on May 18, 2108 after a federal jury returned five guilty verdicts. He appeared before U.S. District Judge Henry E. Autrey.
The case was investigated by the Missouri Department of Revenue-Compliance and Investigation Bureau and the State of Illinois Secretary of State Police. This case was handled by Assistant United States Attorneys Tracy Berry and Dianna Collins.
Head of Newark, New Jersey, Drug Trafficking Organization Admits Conspiracy to Distribute Heroin, Fentanyl, and Crack Cocaine and Possession of A FirearmRead the Press Release
NEWARK, N.J. – A Newark man today admitted his role in a conspiracy to distribute more than a kilogram of heroin, 150 grams of fentanyl, and 240 grams of crack cocaine as well as being a previously convicted felon in possession of a firearm, U.S. Attorney Craig Carpenito announced.
Ahmad Johnson, a/k/a “OC,” 38, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to a superseding information charging him with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin, 28 grams of cocaine base, and 40 grams of fentanyl, and one count of being a felon in possession of a firearm.
According to documents filed in this case and statements made in court:
From September 2016 through June 2017, Johnson and other members of the Johnson DTO engaged in a heroin distribution conspiracy that operated in and around Newark.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement officers learned that Johnson was a leader of the conspiracy and was responsible for obtaining wholesale amounts of narcotics, including heroin and cocaine, and processing and packaging the narcotics for sale in the Newark area. At times, after the narcotics were processed and packaged for sale, Johnson found users to “test” the narcotics to evaluate the quality, potency, and danger for broader distribution. After the narcotics were tested, members of the Johnson DTO sold the narcotics to other distributors and to users.
The conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The charge of being a felon in possession of a firearm is punishable by up to 10 years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 20, 2019.
U.S. Attorney Carpenito credited special agents and officers with the Drug Enforcement Administration’s High-Intensity Drug Trafficking Area (HIDTA) Group 1, under the direction of Special Agent in Charge Valerie A. Nickerson, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Organized Crime and Drug Enforcement Task Force / Narcotics Unit in Newark.
Defense counsel: Dennis S. Cleary Esq., West Orange, New Jersey
German Shipping Operator Sentenced to Pay $3.2 Million for Obstruction of Justice and Falsifying Official Logs to Hide Deliberate Oil PollutionRead the Press Release
A German shipping company, MST Mineralien Schiffahrt Spedition und Transport GmbH (MST), pleaded guilty and was sentenced today in Portland, Maine, for obstruction of justice and for maintaining false official records to conceal deliberate pollution from one of its ships, the M/V Marguerita, announced Assistant Attorney General Jeffrey B. Clark for the Justice Department’s Environment and Natural Resources Division and United States Attorney Halsey B. Frank for the District of Maine.
MST pleaded guilty today to one count of violating the Act to Prevent Pollution from Ships and one count of obstruction of justice for using falsified log books to hide intentional discharges of oily bilge waste occurring over a nine-month period during which the ship regularly made port calls in Portland, Maine. U.S. District Court Judge Nancy Torresen sentenced the company pursuant to a plea agreement and ordered it to pay a $3.2 million criminal fine and serve a four-year term of probation during which vessels operated by the company will be required to implement an environmental compliance plan, including inspections by an independent auditor.
“Today’s action demonstrates that the Coast Guard and the Justice Department will not stand by while foreign vessels intentionally pollute our oceans and then try to cover up their criminal acts by lying to the U.S. Coast Guard,” said Assistant Attorney General Jeffrey Bossert Clark. “This company is a repeat offender, which makes plain that it has shown contempt for the rule of law. I applaud the investigators and prosecutors who obtained this result.”
MST, a vessel operator based in Bavaria, Germany, was convicted of similar environmental crimes in the District of Minnesota in 2016. That federal case involved the falsification of the oil record book for the M/V Cornelia, which concealed deliberate discharges of oil-contaminated bilge waste, including discharges into the Great Lakes. MST was on probation in the District of Minnesota when it committed the crimes charged in Maine.
According to documents filed in court, MST discharged oily bilge waste from the Marguerita through the use of a so-called “magic pipe” that bypasses required pollution prevention equipment. The discharges violated MARPOL, an international treaty and were not recorded in the vessel’s oil record book, a required ship log regularly inspected by the U.S. Coast Guard to assure compliance.
The case was investigated by the U.S. Coast Guard Investigative Service with assistance from the U.S. Coast Guard Sector Northern New England which conducted the inspection of the ship. The prosecution was handled by Trial Attorney John Cashman and Senior Litigation Counsel Richard Udell of the Environmental Crimes Section of the U.S. Department of Justice, with assistance from the U.S. Attorney’s Office for the District of Maine.
Four Health Care Professionals and a Personal Trainer Indicted for Allegedly Pocketing $6.5 Million for Nonexistent ServicesRead the Press Release
CHICAGO — Four Chicago-area health care professionals and a personal trainer have been indicted on federal fraud charges for allegedly scheming to pocket $6.5 million from private health and auto insurers for physical therapy, chiropractic and other services that were never rendered.
INESSA KATSNELSON, also known as “Inessa Blinov,” “Inessa Danuchevsky” and “Inna,” a personal trainer and singer who worked out of a gym in Northbrook, and MAYA YAKUBOVICH, a medical claims biller in Arlington Heights, recruited friends and family to permit their insurance companies to be falsely billed for nonexistent health care services purportedly rendered by suburban clinics operated by co-schemers, according to the 22-count indictment. In exchange, the friends and family had their insurance deductibles exhausted at no out-of-pocket expense to them, and many received free gym training sessions and massages, the indictment states.
From 2006 until last month, Katsnelson, 50, of Glenview, Yakubovich, 52, of Arlington Heights, and the other defendants – physical therapy center operator YAROSLAVA BOYKO, also known as “Yana Boyko,” 76, of Morton Grove, medical claims biller TETYANA VORONKINA, also known as “Tanya Voronkina,” 54, of Mundelein, and massage therapist VIKTOR DANCHUK, 57, of Roselle – and their co-schemers fraudulently obtained a total of at least $6.5 million from at least nine insurance companies, the indictment states.
The indictment was returned Tuesday in U.S. District Court in Chicago, charging the five defendants with health care fraud. Katsnelson is also individually charged in the indictment with aggravated identity theft for allegedly using the identifying information of a physician to create certain fraudulent claims. Arraignment for all five defendants is set for Nov. 8, 2018, at 9:30 a.m., before U.S. District Judge Sharon Johnson Coleman.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The government is represented by Assistant U.S. Attorneys Heather K. McShain and Matthew L. Kutcher.
The public is reminded that an indictment is 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.
Aggravated identity theft is punishable by a mandatory sentence of two years in prison. Health care fraud is punishable by up to ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory United States Sentencing Guidelines.
Former Middletown Inmate Pleads Guilty to Distributing Fentanyl That Caused Overdoses in the JailRead the Press Release
CINCINNATI – Eugene Mongar, 34, pleaded guilty in U.S. District Court to participating in a narcotics conspiracy in the Middletown Jail.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), announced the plea entered into yesterday afternoon before U.S. District Judge Michael R. Barrett.
According to court documents, Mongar was a trustee inmate at the Middletown Jail in December 2017 when co-defendant Louis Cox III, 27, of Middletown, was arrested and booked for drug trafficking.
Cox is alleged to have smuggled fentanyl into the facility on December 1, 2017. Officers were dispatched to the jail on December 2, 2017 for several reported overdoses.
One of those inmates who had overdosed told officers Mongar had approached him with fentanyl in exchange for $20 worth of commissary.
Mongar admitted to distributing the fentanyl. Mongar himself overdosed three times within a two-day period from using the same fentanyl he was distributing.
Mongar and Cox were indicted by a federal grand jury in May 2018, at which time they were both transferred to federal custody.
Mongar pleaded guilty to one count of conspiring to distribute narcotics, a crime punishable by up to 20 years in prison.
Cox has also been charged with participating in a narcotics conspiracy, as well as distributing a controlled substance.
U.S. Attorney Glassman commended the investigation of this case by the DEA, the Middletown Police Department and Assistant United States Attorneys Ashley N. Brucato and Timothy D. Oakley, who are representing the United States in this case.
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Former Executive Director at Venezuelan State-Owned Oil Company, Petroleos de Venezuela, S.A., Pleads Guilty to Role in Billion-Dollar Money Laundering ConspiracyRead the Press Release
A former executive director at the Venezuelan state-owned oil company, Petróleos de Venezuela, S.A. (PDVSA), pleaded guilty today for his role in a billion-dollar international scheme to launder funds embezzled from PDVSA.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Abraham Edgardo Ortega, 51, a Venezuelan national, who was PDVSA’s executive director of financial planning, pleaded guilty to one count of conspiracy to commit money laundering. He is scheduled to be sentenced on Jan. 9 by U.S. District Judge Kathleen M. Williams of the Southern District of Florida, who accepted his plea today.
As part of his plea, Ortega admitted that in his position with PDVSA, he accepted $5 million in bribes to give priority loan status to a French company and a Russian bank, which were both minority shareholders in joint ventures with PDVSA. Ortega was paid for this bribery scheme with the proceeds of a currency exchange scheme, through which $1.2 billion was embezzled, through bribery and fraud from PDVSA. Ortega also admitted that in his position with PDVSA, he accepted $12 million in bribes for his participation in a PDVSA embezzlement scheme involving a loan and foreign-exchange contract.
Ortega admitted that he worked with a co-defendant to launder $12 million that he received as bribe payments. Ortega admitted that he and his co-defendant laundered $12 million through a sophisticated false-investment scheme that received money from a payment made to look like an investment into a fund, but, in fact, the payment was actually laundered out of the fund. Surrounding and supporting this false-investment laundering scheme were complicit money managers, brokerage firms, banks and real estate investment firms in the United States and elsewhere, operating as a network of professional money launderers, Ortega admitted.
Ortega’s co-conspirators indicted on Aug. 16 include former PDVSA officials, professional third-party money launderers and members of the Venezuelan elite, sometimes known as “boliburgués.”
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force’s (OCDETF) “Operation Money Flight,” a partnership among federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
HSI Miami, HSI London, HSI Rome and HSI Madrid investigated this case. This case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida’s Economic and Environmental Crimes Section and Trial Attorney David Johnson of the Criminal Division’s Fraud Section. Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida is handling the asset forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs provided substantial assistance in this matter. The National Crime Agency of the United Kingdom and Italian, Spanish and Maltese law enforcement authorities also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Flushing Man Sentenced for Conspiracy Related to Interstate Prostitution BusinessRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that LiangLiang Guo, 32, of Flushing, NY, who was convicted of conspiracy to use interstate facilities to promote prostitution and to transport individuals in interstate commerce with intent that such individuals would engage in prostitution, was sentenced to serve six months in prison by U.S. District Judge Lawrence J Vilardo.
Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated that the defendant, and co-defendants Feng Yang Chen and Chengqi Li, were part of a multi-state prostitution business that sent female victims to cities and states across the Eastern United States to engage in commercial sex acts. As part of that business, Chen and Li posted advertisements on Backpage.com to set up meetings between clients and prostitutes in Tonawanda, NY and other cities and states. Guo acted as a driver for the prostitution business, driving the females to hotels where they would engage in commercial sex acts. Guo also collected the proceeds of the illicit prostitution business and provided them to Chen.
Today’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Tonawanda Police Department, under the direction of Chief Jerome C. Uschold III; the New York Police Department, under the direction of Chief James P. O’Neill; the South Portland, Maine Police Department, under the direction of Chief Edward Googins; and the Fairview Township Police Department, under the direction of Chief Jason C. Loper.
# # # #Final Defendant Sentenced in Meth Trafficking RingRead the Press Release
BRUNSWICK, GA: The leader of a multi-state methamphetamine trafficking ring will spend more than 23 years in prison after sentencing this week in federal court.
Susan “Ma” Anderson, 67, of Hortense, Ga., was sentenced Oct. 30 by United States District Court Judge Lisa Godbey Wood to 280 months in prison for conspiracy to distribute and possession of 50 grams or more of methamphetamine, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Anderson was the leader of a methamphetamine trafficking organization operating out of Wayne, Brantley, and Ware counties, along with other counties in north Georgia and north Florida. Anderson’s husband, Robert Ira “Pa” Anderson, 67, recently was sentenced to 120 months in prison for his role in the drug operation.
The Andersons were the last of 10 defendants sentenced to prison as part of a joint federal and state operation through the Organized Crime Drug Enforcement Task Force (OCDETF) that targeted methamphetamine trafficking in Georgia and Florida.
Evidence presented during numerous hearings in the case revealed that Susan Anderson was the leader of an organization that distributed multi-kilogram quantities of methamphetamine throughout the Southern District of Georgia, the Northern District of Georgia, and the Northern District of Florida. During a search of the Andersons’ Hortense, Ga., home, about 35 miles from Brunswick, law enforcement authorities discovered Robert Anderson had built trap doors in the home’s floor that concealed kilograms of methamphetamine along with 10 firearms and thousands of dollars in cash.
“This case provides another example of outstanding results achieved through joint federal and state investigation and prosecution of drug traffickers,” said United States Attorney Bobby L. Christine. “Poison pushers in our community will be hunted until captured and placed in prison.”
Additional defendants previously convicted and sentenced for their role in the organization are:
- Kenneth J. Williams, 56, of Hortense, sentenced to 94 months in prison;
- Grover W. Herrin, 61, of Hoboken, Ga., sentenced to 90 months in prison;
- Anthony Joseph Parse, 32, of Jesup, Ga., sentenced to 75 months in prison;
- James Robbin Belch, 59, of Waycross, sentenced to 60 months in prison;
- Charles W. Merkle, 42, of Waycross, sentenced to 36 months in prison;
- Karen Moody, 49, of Nahunta, Ga, sentenced to 32 months in prison; and,
- Lemuel Henderson, 49, of Hoboken, sentenced to 15 months in prison.
In addition, Bonny Wyers, 35, previously was sentenced to 180 months in prison by United States District Court Judge Robert L. Hinkle in the Northern District of Florida for conspiring with Susan Anderson to distribute methamphetamine.
There is no parole in the federal prison system.
U.S. Attorney Christine commended the work of the agencies involved in the joint federal-state investigation, including the FBI, the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Marshal’s Service, the Georgia Bureau of Investigation, the Georgia State Patrol, the Clayton County Sheriff’s Office, Lowndes County Sheriff’s Office, and the Bay County (Florida) Sheriff’s Office.
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division said, “All participating agencies played a crucial role in the eradication of this criminal network. Anderson’s methamphetamine trafficking activities posed a significant threat to the quality of life in Wayne, Brantley, and Ware counties and surrounding areas. The dismantling of this dangerous organization makes these communities safer today. I want to thank our federal, state and local law enforcement counterparts and the United States Attorney’s Office, who had a direct impact in making this investigation a success.”
“This is one more example of drug distribution networks operating in rural Georgia getting a wake-up call from state and federal agents who partnered with local law enforcement officials to address community concerns,” said Jamie Jones, Special Agent in Charge of the GBI’s Southeastern Drug Enforcement Office. “These investigations are conducted jointly across the state on a daily basis by men and women from various departments who are committed to disrupting the clear and present danger drug distribution networks pose to our fellow Georgians.”
Assistant United States Attorney Tania Groover prosecuted the case on behalf of the United States. For any questions, please contact Barry Paschal at the United States Attorney’s Office at (912) 652-4422.