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13 December 2018
Project Huntington Update: Operation Saigon Sunset Defendant Sentenced to Prison for Role in Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington man and Operation Saigon Sunset defendant was sentenced yesterday to 30 months in prison for his role in a federal drug conspiracy, announced United States Attorney Mike Stuart. Lonnie Berry, II, 43, previously pled guilty to an indictment which charged him with conspiracy to distribute heroin. This investigation was the result of a joint effort by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
“Another defendant sentenced to prison for his role in the Peterson Drug Trafficking Organization (DTO),” said United States Attorney Mike Stuart. “There is no revolving door for defendants convicted on federal charges.”
Berry admitted that between October 2017 and April 2018 he conspired with Willie Peterson, also known as “Chill,” and Manget Peterson, also known as “Money,” to distribute heroin in Huntington, West Virginia. Berry admitted that he sold heroin for Manget Peterson on a daily basis in Huntington.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Pittsburgh Felon Illegally Possessed Cocaine, Crack, Pistol and AmmunitionRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
John Hornezes, 44, of Pittsburgh, Pennsylvania, pleaded guilty to three counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that from in and around September, 2016, and continuing thereafter to November 30, 2017, Hornezes conspired with others known and unknown, to distribute and possess with the intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance. Additionally, on November 30, 2017, Hornezes possessed with intent to distribute 28 grams or more of crack, a Schedule II controlled substance. Further, on November 30, 2017, Hornezes possessed a Ruger, Model P89, 9mm caliber pistol, and 9mm caliber ammunition, even though he had previously been convicted of a felony offense, which prohibits him from possessing any firearm or ammunition.
Judge Schwab scheduled sentencing for March 9, 2019 at 9:30 a.m. The law provides for a maximum total sentence of not less than15 years and up to life in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorneys Rebecca L. Silinski and Jerome A. Moschetta are prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation that led to the prosecution of John Hornezes. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The Stowe Township Police Department also provided assistance in this investigation. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Parma man indicted for filing false tax returnsRead the Press Release
A Parma man was indicted for filing false tax returns.
Mohammad H. Mohammad, 54, was indicted on four counts of filing false tax returns.
Mohammad understated his income and failed to report gross receipts or sales generated by the business operations of Muhammad Brothers Partners for calendar years 2012 and 2013, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Carmen E. Henderson following an investigation by the Internal Revenue Service – Criminal Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Owner and Four Former Employees of New England Compounding Center Convicted Following TrialRead the Press Release
BOSTON – An owner and four former employees of New England Compounding Center (NECC) were convicted today by a federal jury for their roles at NECC, the company that caused the 2012 nationwide fungal meningitis outbreak. The outbreak was the largest public health crisis ever caused by a pharmaceutical drug. With today’s convictions, 11 former owners, executives, and employees of NECC have been convicted of federal criminal charges.
“These defendants were professionals who acted recklessly to the extreme detriment of public health,” said United States Attorney Andrew Lelling. “Over the course of years, the defendants callously disregarded patient health by cutting corners and prioritizing profits over safety. And they got away with it by defrauding federal and state regulators. The result was contaminated, deficient, deadly drugs that never should have been made or distributed. Ultimately, the jury found the defendants’ fraudulent conduct wrong and deserving of punishment. I applaud the prosecutors and the investigative team on their dogged determination to bring us another step closer to justice for the victims and their families.”
“A key aspect of the FDA’s mission is to ensure that drugs are made under high quality conditions to prevent patient harm due to poorly compounded products,” said FDA Commissioner Scott Gottlieb, M.D. “This episode was a tragic reminder of why compounding and compounded drugs can present serious risks to patients. We’ve taken significant new steps to ensure the quality of compounded drugs and improve patient safety, in order to prevent another calamity like the episode involving NECC. However, we continue to see significant risk associated with some compounded drugs, and firms that produce and ship drugs in bulk without any regard for product quality and patient safety. We’re increasing our oversight in this space to crack down on activity that puts patients at risk. At the same time, we’re continuing to advance new policies to help responsible firms that are seeking to stay in compliance with quality standards find efficient ways to meet those requirements.”
“These defendants callously ignored their professional responsibilities to protect patient safety,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division. “Their failure to safeguard the public played a significant role in the distribution of medicines that were harmful. The FBI will continue to work with our law enforcement partners to combat fraud and abuse in the health care system, so that we can do everything we possibly can to protect the American public from harm.”
Following an 8-week trial, the following defendants were found guilty by a federal jury:
Gene Svirskiy, 37, of Ashland, Mass., a former NECC clean room pharmacist, who supervised NECC’s production of high-risk heart medications, was convicted of racketeering, racketeering conspiracy, 10 counts of mail fraud, and two counts of introduction of adulterated drugs into interstate commerce with intent to defraud or mislead. Judge Richard G. Stearns scheduled Svirskiy’s sentencing for March 11, 2018. Svirskiy faces a sentence of no greater than 20 years in prison.
Christopher Leary, 34, of Shrewsbury, Mass., an NECC clean room pharmacist, was convicted of three counts of mail fraud, one count of introduction of adulterated drugs into interstate commerce with intent to defraud or mislead, and two counts of introduction of misbranded drugs into interstate commerce. Leary’s sentencing is scheduled for March 14, 2018. Leary faces a sentence of no greater than 20 years in prison.
Sharon Carter, 54, of Hopkinton, Mass., NECC’s former director of operations, was convicted of conspiracy to defraud the United States. Carter’s sentencing is scheduled for March 21, 2018. She faces a sentence of no greater than five years in prison.
Alla Stepanets, 38, of Framingham, Mass., one of NECC’s verification pharmacists, was convicted of six counts of introduction of misbranded drugs into interstate commerce. Sentencing is scheduled for March 26, 2018. She faces a sentence of no greater than one year in prison.
Greg Conigliaro, 53, of Southborough, Mass., a former owner of NECC, was convicted of conspiracy to defraud the United States. Judge Stearns scheduled Conigliaro’s sentencing for March 28, 2018. He faces a sentence of no greater than five years in prison.
Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Joseph Evanosky, 46, of Westford, Mass., a former clean room pharmacist, was acquitted.
In 2012, 753 patients in 20 states were diagnosed with a fungal infection after receiving injections of preservative-free methylprednisolone acetate (MPA) manufactured by NECC. Of those 753 patients, the U.S. Centers for Disease Control and Prevention (CDC) reported that 64 patients in nine states died. The government has since identified a total of 793 patients throughout the country harmed by NECC’s contaminated MPA. More than 100 patients have now died.
The criminal investigation revealed that in addition to the contaminated MPA, NECC’s other pharmacists, including Svirskiy and Leary, knowingly made and sold numerous drugs in a similar unsafe manner and in insanitary conditions. The unsafe manner included, among other things, the pharmacists’ failure to properly sterilize NECC’s drugs, failure to properly test NECC’s drugs for sterility, and failure to wait for test results before sending the drugs to customers. They also approved the use of expired drug ingredients, and the mislabeling of those drugs in order to deceive customers. The insanitary conditions included, among other things, NECC’s lack of proper cleaning and NECC’s failure to take any action when its own environmental monitoring repeatedly detected mold and bacteria within NECC’s clean rooms throughout 2012.
NECC repeatedly took steps to shield its operations from regulatory oversight by the FDA by claiming to be a pharmacy dispensing drugs pursuant to valid, patient-specific prescriptions. In fact, NECC routinely dispensed drugs in bulk without valid prescriptions. Despite this practice, Conigliaro, an owner of NECC, repeatedly misrepresented to the FDA and the Massachusetts Board of Pharmacy that NECC was only dispensing drugs pursuant to patient-specific prescriptions. Carter, NECC’s director of operations, directed employees to engage in a number of fraudulent prescription schemes to deceive regulators by creating the appearance that NECC had prescriptions for the drugs it was selling. To that end, defendant Stepanets, one of NECC’s verification pharmacists, was convicted of approving shipments of drugs for patients with names such as Wonder Woman, Fat Albert, Bud Weiser, Samuel Adams, Hindsight Man, Betty Ford, Jimmy Carter, Bill Clinton, Donald Trump, Calvin Klein and Jennifer Lopez.
“Today’s verdicts demonstrate the ongoing commitment of the Defense Criminal Investigative Service (DCIS) to ensure the integrity of TRICARE, the U.S. Defense Department’s health care program,” stated Special Agent-in-Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. “DCIS will continue to work with its law enforcement partners and the U.S. Attorney's Office to identify individuals and companies who disregard laws and regulations involving pharmaceuticals and, in so doing, endanger the health and safety of U.S. military members and their families.”
“It is appalling that NECC staff engaged in this blatant fraudulent activity with such reckless disregard for patient safety,” said Sean Smith, Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division. “This verdict should send a clear message to individuals and businesses that VA OIG and its law enforcement partners will vigorously investigate healthcare fraud that puts the public and veterans at risk.”
“Today’s verdicts demonstrate the commitment of the U.S Postal Inspection Service to bring justice to those who put our customers, the American public, at risk,” said U.S. Postal Inspection Service’s Inspector in Charge, Joseph W. Cronin of the Boston Division. “The cooperation and hard work of our fellow law enforcement agencies and the Department of Justice illustrates the common mission of protecting our citizens.”
In June 2017, Barry Cadden, the former owner and head pharmacist for NECC, was sentenced to nine years in prison and three years of supervised release after being convicted of racketeering, racketeering conspiracy, mail fraud and introduction of misbranded drugs into interstate commerce with the intent to defraud and mislead. In January 2018, Glenn Chin, NECC’s former supervisory pharmacist, was sentenced to eight years in prison and two years of supervised release after being convicted of 77 counts.
Two remaining defendants, Kathy Chin, and Michelle Thomas, of Cumberland, R.I., both of whom were former verification pharmacists, are scheduled to stand trial on March 25, 2019.
U.S. Attorney Lelling, FDA Commissioner Gottlieb, M.D., FBI SAC Shaw, DCIS SAC Barzey, VA OIG SAC Smith, and Inspector Cronin made the announcement today. Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of Lelling’s Criminal Division prosecuted the case.
Operator of Three Edmonds, WA Childcare Centers Agrees to Improve Staff Training for Children with DiabetesRead the Press Release
The operator of three childcare centers in Edmonds, Washington settled a civil investigation with the U.S. Department of Justice by agreeing to a series of steps to accommodate attendance at the centers by children with diabetes, announced U.S. Attorney Annette L. Hayes. ‘Grow with Us’ childcare centers agreed to train managers and staff on American with Disabilities (ADA) regulations and more specifically, how to ensure the medical needs of children with diabetes are met during their time at daycare.
The agreement follows complaints from the foster parents of a child with Type I diabetes, alleging that the childcare center refused to take reasonable steps to modify their policies, practices, and procedures to accommodate the child’s medical needs.
“The ADA is clear that all children, regardless of their health status, deserve full and equal access to schools, camps and daycare centers,” said U.S. Attorney Annette L. Hayes. “I am pleased that after we began our investigation, ‘Grow With Us’ child care centers agreed to take steps to ensure their facilities were in full compliance with the ADA.”
According to the settlement agreement, the childcare centers will provide a staff member to assist children with diabetes with routine care tasks such as testing blood sugar levels and administering insulin by pen, syringe or pump. The childcare centers agree to train managers and staff and provide diabetes management information on its website. The centers also have committed to report to DOJ about those leading the training and the training materials used by the center.
Diabetes affects approximately 215,000 Americans that are 20 years or younger. In recent years DOJ has reached settlements with other childcare providers, schools and camps with regard to diabetes care including, KinderCare, YMCA of Chicago and YMCA of Philadelphia.
The investigation and settlement were handled by Assistant United States Attorney Kayla Stahman.
Omaha Man Sentenced for Bank RobberyRead the Press Release
United States Attorney Joe Kelly announced that Kevin Brown, age 30, was sentenced in federal court today in Lincoln, Nebraska, for one count of bank robbery. The Honorable John M. Gerrard sentenced Brown to 33 months in prison, ordered him to pay $84,505 in restitution, and three years of supervised release after he is released from prison.
On June 22, 2018, Brown and at least one other person went into the Great Western Bank, 8380 Old Cheney Road, Lincoln, Nebraska, and demanded money from the employees. The employees were told to put their hands up and lie on the ground. One of the robbers was wearing a flesh-colored mask, camouflage doo rag, white gloves and sunglasses. The second robber was wearing a blue medical mask and a long black wig. They left the bank with $84,505. A vehicle used in the robbery was tracked to Budget Rent A Car in Omaha. Later that day, Brown was located returning the rental car that had been used in the bank robbery. He had the flesh-colored mask, camouflage colored doo rag, and gloves in his possession that matched what was worn in the robbery.
The case was investigated by the Lincoln Police Department and the Federal Bureau of Investigation Great Plains Violent Crimes Task Force.
Oberlin Man Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Travis Jones, age 20, of Oberlin, Pennsylvania, was indicted yesterday by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that Jones possessed with intent to distribute heroin and fentanyl on April 13, 2017, in Dauphin County. The indictment also alleges that on February 8, 2018, in Dauphin County, Jones possessed with intent to distribute heroin and possessed a firearm in furtherance of drug trafficking.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg City Police Department. The case is being prosecuted by Assistant U.S. Attorney Carlo D. Marchioli.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is imprisonment for life, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Orleans Man Sentenced for Fentanyl DistributionRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that TONY LAM, age 41, of New Orleans, was sentenced yesterday after previously pleading guilty to a one-count bill of information for distribution of over 40 grams of a mixture containing fentanyl.
United States District Court Judge Martin L.C. Feldman sentenced LAM to 327 months of imprisonment followed by 8 years of supervised release, and a $100 special assessment fee.
According to the bill of information, on July 7, 2017, LAM distributed over 40 grams of a mixture containing fentanyl.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
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Navajo Man from McKinley County Sentenced to Prison for Federal Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Joe Lee Haines, 36, an enrolled member of the Navajo Nation who resides in Tinian, N.M., was sentenced today in federal court in Albuquerque, N.M., to one year and one day in prison for his child abuse conviction. Haines will be on supervised release for one year after completing his prison sentence.
On Sept. 17, 2018, Haines pled guilty to child abuse. He admitted that on Sept. 1, 2017, while he was intoxicated, he placed a rifle into a child’s mouth, accused the child of taking money from him, and threatened to pull the trigger.
The Gallup office of the FBI and the Navajo Nation Division of Public Safety investigated this case. Assistant U.S. Attorney Kyle T. Nayback prosecuted the case.
Multi-Convicted Felon Charged with Firearms ViolationsRead the Press Release
PITTSBURGH, PA - A resident of Latrobe, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of federal firearms violations, United States Attorney Scott W. Brady announced today.
The two-count Indictment, returned on Dec. 12, named Thomas George Stanko, 48, as the sole defendant.
According to the Indictment, from on or about April 12, 2018 through on or about August 29, 2018, Stanko unlawfully possessed firearms and ammunition, after having been convicted of multiple crimes punishable by more than one year in prison. In total, Stanko unlawfully possessed 17 firearms. Those convictions related to retaliation against a witness or victim, criminal conspiracy, firearms not to be carried without a license, receipt of stolen property, and forgery. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The law provides for a maximum total sentence of 20 years in prison, a fine of $500,000 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 Christy Criswell Wiegand is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Pennsylvania State Police conducted the investigation leading to the Indictment in this case. The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Monroe County Man Sentenced to More Than 11 Years in Prison for Role in Heroin ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Myron Owens, age 31, of East Stroudsburg, was sentenced yesterday by Senior U.S. District Court Judge James M. Munley to 140 months’ imprisonment and four years on supervised release for his role in a Monroe County-based conspiracy that was responsible for distributing between 100 and 400 grams of heroin and cocaine.
According to United States Attorney David J. Freed, Owens previously pleaded guilty to committing the offense between 2012 and 2015. Owens admitted to conspiring with others to obtain the drugs from a supplier in Patterson, New Jersey, and the drugs were then transported to Monroe County and sold to sub-distributors and customers. The amount of heroin distributed by the conspiracy was equivalent to approximately 4,000-16,000 retail bags of heroin.
In imposing the sentence, Judge Munley noted the dangerous impact of heroin trafficking on the people of our communities.
Owens was one of seven people charged by a federal grand jury in a superseding indictment in March 2015. The others charged—Eddie Pace, Shawnette Isaac, Daryl Trent, William Young, Catherine Abbey, and Anton Woodson—all previously entered guilty pleas in the case. Trent received a 90-month prison sentence. Woodson was sentenced to 63 months’ imprisonment. Isaac received a 30-month prison sentence. Abbey was sentenced to one year in prison. Pace and Young are awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police from Monroe County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This prosecution is also part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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Members of Drug Trafficking Organization Indicted on Dozens of ChargesRead the Press Release
BRUNSWICK, GA – Two dozen people have been indicted on federal drug trafficking and firearms charges related to a distribution ring operating in south Georgia and northern Florida.
A superseding indictment unsealed today in U.S. District Court in Brunswick charges Robert Johnson, 52, of Jacksonville, Fla., as a supplier to previously indicted members of the conspiracy. During a search of Johnson’s home, agents seized quantities of multiple controlled substances including cocaine, MDMA – also known as Molly – heroin and marijuana, announced Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
The indictment alleges that Johnson was a supplier to the other 23 members of the trafficking ring, which distributed large amounts of cocaine, crack cocaine, MDMA, marijuana and other drugs throughout Georgia and Florida. The operation started more than a year ago as a joint federal, state and local investigation into violent gang and drug trafficking activities in Glynn County, Ga., led by the FBI, the Glynn County Police Department and the Brunswick Police Department.
In addition to Johnson, others indicted are:
Maurice Fields, 34 Brunswick, Ga.;
Eric Reneantonio Stuckey, 29, Brunswick, Ga.;
Javon Arashalla Newton, 30, Brunswick, Ga.;
Xontavious Dionte Hawkins, 32, Brunswick, Ga.;
Bronco Darelle Jackson, 33, Brunswick, Ga.;
Wilbert Lee Stephens Jr., 26, Brunswick, Ga.;
Zahria Jane Boston, 20, Atlanta, Ga.;
Andrew Riley, 45, Brunswick, Ga.;
Anthony Kanyatta Seals, 42, Brunswick, Ga.;
Michael Arthur Nixon, 59, Brunswick, Ga.;
Mario Capers, 37, Brunswick, Ga.;
Jose Salguero, 30, Brunswick, Ga.;
Jermaine Tyrone Fuller, 38, Brunswick, Ga.;
Derrick Bernard Johnson, 43, Brunswick, Ga.;
Alex Dion Manor, 46, Brunswick, Ga.;
Jimmy Bradwell Ferrell, 54, Brunswick, Ga.;
Malik Williams, 24, Brunswick, Ga.;
Reginald Andre Beckham Sr., 46, Brunswick, Ga.;
Jamal David Gaines, 34, Jacksonville, Florida
Elliot Loyranzy Armstrong, 45, Brunswick, Ga.;
Timothy John Sallins, 46, Brunswick, Ga.;
John Draxell Buckley, 58, Brunswick, Ga.; and,
Camron Thomas, 36, Brunswick, Ga.;
All of the defendants are charged with conspiracy, with some facing additional charges including possession with intent to distribute controlled substances, possession of a firearm by a prohibited person, and possession of a firearm in furtherance of a drug-trafficking crime. Most of the defendants have been arrested and brought before a federal Magistrate Judge in Brunswick for their initial appearances. Upon conviction, many of the defendants face up to 20 years in federal prison, and in federal prison there is no parole.
During the investigation, authorities seized significant amounts of controlled substances, along with an AR-15 rifle and multiple handguns.
“These indictments represent the third major takedown of a criminal drug-distribution conspiracy in the lower part of the Southern District of Georgia just this year,” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “Similar operations in March and October netted 27 arrests for distributing poison in our communities, and we are committed to coordinating with our law enforcement and prosecutorial partners to make our neighborhoods safer.”
“The federal indictments in this case emphasize our commitment to rid our communities of the threat of violence from organizations who plague our streets distributing drugs,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI’s Safe Streets Gang Task Forces, comprised of federal, state and local law enforcement officers, will continue to commit extensive resources toward dismantling these types of organizations.”
“The Glynn County Police Department is honored to have such a great working relationship with our local, state and federal law enforcement partners as well as federal and state prosecutors,” said Glynn County Police Chief John Powell. “Working together we will ensure a safer community for our citizens.”
A criminal indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
Assistant United States Attorneys Jennifer Kirkland and Marcela Mateo are prosecuting the cases on behalf of the United States.
For any questions, please contact Barry Paschal at the United States Attorney’s Office at (912) 652-4422.
Members and Associates of the Gambino and Bonanno Organized Crime Families Sentenced for RacketeeringRead the Press Release
Earlier today, in federal court in Central Islip, Frank “Frankie Boy” Salerno, a soldier in the Bonanno organized crime family of La Cosa Nostra (the “Bonanno family”), was sentenced to 60 months’ imprisonment for racketeering conspiracy. Previously, on December 6, 2018, John “Johnny Boy” Ambrosio, an acting captain in the Gambino organized crime family of La Cosa Nostra (the “Gambino family”), and Anthony Saladino, an associate of the Gambino family, were sentenced to 51 and 63 months’ imprisonment, respectively, for racketeering conspiracy. Ambrosio, Saladino and Salerno were the last of seven defendants to be sentenced on a superseding indictment charging Gambino and Bonanno members and associates with racketeering conspiracy, including predicate acts of drug trafficking, loan sharking, gambling and obstruction of justice. The sentencing proceedings were held before United States District Judge Sandra J. Feuerstein.
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); Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York (HSI); and Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), announced the sentencings.
“With these sentences, each of the seven defendants has now been punished for continuing organized crime’s corrosive influence on Long Island,” stated United States Attorney Donoghue. “There should be no doubt that putting a stop to the criminal activities of La Cosa Nostra continues to be a priority of this Office and our law enforcement partners.” Mr. Donoghue expressed his grateful appreciation to the New York City Police Department for its assistance in the investigation.
“Organized crime continues to plague our communities with violence, coercion, and intimidation,” stated FBI Assistant Director-in-Charge Sweeney. “The mobsters grow richer while their victims live in fear as they struggle to make payments while dealing with daily threats. Today’s sentences demonstrate that the shirt button of a ‘made man’ is no match for a badge – the FBI/NYPD Joint Organized Crime Task Force is committed to investigating and rooting out organized crime wherever it occurs, and the perpetrators will be brought to justice.”
“These individuals were caught up in an elaborate racketeering conspiracy; acting as loan sharks, operating underground gambling rings and trafficking narcotics,” stated HSI Special Agent-in-Charge Melendez. “Today’s sentencing should serve as notice to those pursue this criminal lifestyle, that law enforcement is diligently investigating these cases and you will be caught and serve time for your actions.”
“This case is yet another example of the dedicated collaboration among law enforcement agencies in the region to send a message that law enforcement is working together to halt the operations of La Cosa Nostra and their illegal activities,” stated SCPD Commissioner Hart. “I commend the Eastern District of New York for ensuring these individuals pay for their crimes.”
Between January 2014 and December 2017, Ambrosio and his co-defendants engaged in a racketeering conspiracy. Salerno routinely collected payments from extortionate loans and gambling-related debts, often at the direction of Ambrosio. In one intercepted conversation, Saladino and Thomas Anzalone discussed unpaid gambling debts, during which Saladino said he would give the debtor “something to be scared about.” On another occasion, Saladino admitted to an undercover agent that he and Salerno were involved in organized crime, stating that Salerno “has got that thing (pointing to his shirt button),” indicating membership in organized crime. In another intercepted call, Saladino recounted for Ambrosio a collection effort in which he threatened an individual, saying “when I get my hands around your your f-----g neck, everything is going to pop out of your ears.” Ambrosio also was involved with a variety of gambling operations, including illegal poker games, electronic gaming machines and internet sports betting, with Salerno, Saladino, Alessandro Damelio and Joseph Durso being responsible for many of the day-to-day operations. Anzalone, Damelio, Durso, Saladino and Salerno distributed a variety of narcotics, including cocaine, marijuana and Xanax. When Ambrosio and his co-conspirators were arrested on December 12, 2017, law enforcement agents executed search warrants at various locations, including a storage facility in Nassau County, and recovered gambling and loan sharking records, electronic gaming machines, narcotics and drug paraphernalia and numerous firearms, including two AR-15 rifles, a .38 caliber revolver and a sawed-off shotgun.
As part of his sentence, Ambrosio will forfeit $100,000, including $66,116 in cash that was seized from his residence in Huntington, New York.
Previously, co-defendant Anzalone was sentenced on July 24, 2018 to 34 months’ imprisonment, Anthony Rodolico was sentenced on November 5, 2018 to one year in prison and Damelio and Durso were sentenced on July 11, 2018 and November 5, 2018 respectively to two months’ imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Artie McConnell is in charge of the prosecution.
Defendant:
FRANK SALERNO (also known as “Frankie Boy”)
Age: 43
Queens, New YorkPreviously Sentenced Defendants:
JOHN AMBROSIO (also known as “Johnny Boy”)
Age: 74
Huntington, New YorkANTHONY SALADINO
Age: 67
Glen Cove, New YorkTHOMAS ANZALONE
Age: 44
Queens, New YorkALESSANDRO DAMELIO (also known as “Sandro”)
Age: 49
Queens, New YorkJOSEPH DURSO
Age: 26
Glen Cove, New YorkANTHONY RODOLICO
Age: 46
Huntington, New YorkE.D.N.Y. Docket No. 17-CR-522 (S-1) (SJF)
McAlester Man Pleads Guilty to Possession of Firearm and AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Darryl Emanuel Bickham, Jr., age 34, of McAlester, Oklahoma, entered a guilty plea to Felon in Possession of Firearm and Ammunition, in violation of Title 18 United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about, August 15, 2018, in the Eastern District of Oklahoma, the Defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the McAlester Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Kristin Harrington represented the United States.
Marion County Man Convicted in Shooting at VA Clinic in the VillagesRead the Press Release
Ocala, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Stephen Cometa (62, Marion County) guilty of forcibly assaulting and resisting federal employees with a deadly and dangerous weapon and discharging a firearm during a crime of violence. Cometa faces a maximum penalty of 20 years in prison for the assault and resisting charges, and a mandatory minimum sentence of 10 years, and up to life, in prison for discharging the firearm during a crime of violence. His sentencing hearing has not yet been set.
Cometa had been indicted on December 21, 2016.
According to testimony and evidence presented at trial, Cometa entered The Villages VA Clinic carrying a loaded AR-15 assault rifle, a concealed handgun, and hundreds of rounds of extra ammunition for both firearms. Cometa walked through the clinic to a VA psychiatrist’s office, interrupted an ongoing treatment session, and pointed the assault rifle at the psychologist as he opened the door. The psychiatrist, as well as a VA contractor and two VA police officers, struggled with Cometa for control of the rifle and eventually subdued him. During the struggle, Cometa fired the assault rifle, shooting holes in the walls, ceiling, and furniture.
This case was investigated by the Federal Bureau of Investigation – Ocala Resident Agency, the Marion County Sheriff’s Office, and the Department of Veterans Affairs Police Service. It is being prosecuted by Assistant United States Attorneys William S. Hamilton and Robert E. Bodnar, Jr.
Man Sentenced to 24 Years for Producing Images of Child Sexual AbuseRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to over 24 years in prison for producing child pornography of a 2-year-old boy.
“Protecting the most vulnerable from heinous crimes and vile perpetrators, like Webster, will continue to be a top priority,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The actions that Webster engaged in are one of the most offensive and serious crimes in the entire criminal code. We will continue to shine a light on the darkest areas of the web and protect those that are unable to protect themselves.”
According to court documents, Dashawn Webster, 23, was identified through a complex investigation involving Homeland Security Investigations (HSI), along with international law enforcement partners. Webster was a member of numerous websites dedicated to child exploitation. In order to gain access to some of these websites, Webster had to produce child pornography and share it with other members. In 2016, Webster produced child pornography with a 2-year-old and shared it with others. In addition to the produced images, Webster possessed over 110,000 other images and videos of minors engaging in sexual activity on numerous pieces of electronic media.
“It is devastating that individuals like Dashawn Webster perpetrate this kind of evil in our world today to victimize our children, even infants,” said Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk Michael Lamonea. “The American public can be assured that HSI will continue to aggressively investigate and uncover these criminals and bring them before our justice system to face the consequences of their terrible actions.”
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. Attorney’s Offices and the Child Exploitation and Obscenity Section (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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Elizabeth M. Yusi 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. 2:18-cr-101.
Man Pleads Guilty to Downloading Child PornographyRead the Press Release
ALEXANDRIA, Va. – An Aldie man pleaded guilty today to using the internet to download videos and images depicting the sexual abuse of children.
According to court documents, Hares Fakoor, 33, searched for and downloaded child pornography over a peer-to-peer file-sharing network. A forensic examination of two computers seized from his house in May 2016 revealed that, between December 2014 and May 2016, Fakoor downloaded and viewed numerous videos depicting child sexual abuse, including depictions of bestiality. Fakoor also configured a peer-to-peer file-sharing program to connect to the internet through a proxy service, which masked his IP address.
Fakoor pleaded guilty to one count of receiving child pornography and faces a mandatory minimum sentence of 5 years and a maximum of 20 years in prison when sentenced on March 15, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This matter was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force which is composed of FBI Agents, along with Detectives from the Fairfax County Police, Arlington County Police, Prince William County Police, Loudoun County Sheriff’s Office, Leesburg Police, Alexandria City Police, Washington Metropolitan Police, Fauquier County Sheriff’s Office, George Mason University Police, the United States Marshal’s Service and Agents of various Office of Inspector Generals.
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 the Child Exploitation and Obscenity Section (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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge of the Criminal Division at the Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Special Assistant U.S. Attorneys Kyle P. Reynolds and William G. Clayman are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-355.
Luzerne County Man Sentenced to 18 Months’ Imprisonment for Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Heath Hobbs, age 43, of Pringle, Pennsylvania, was sentenced yesterday to 18 months’ imprisonment by United States District Court Judge A. Richard Caputo on firearms offenses.
According to United States Attorney David J. Freed, Hobbs was charged with possession of five stolen firearms. Hobbs admitted to stealing the firearms and trading them for drugs in October 2017.
The case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, Kingston Municipal Police Department, and the Luzerne County Drug Task Force. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Louisiana Couple Indicted for Conspiracy to Defraud the IRS and Filing False Tax ReturnsRead the Press Release
A federal grand jury sitting in Shreveport, Louisiana, returned an indictment yesterday charging a Shreveport husband and wife with conspiring to defraud the Internal Revenue Service (IRS) and multiple counts of filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney for the Western District of Louisiana David C. Joseph.
According to the indictment, Robert and Donna Poimboeuf owned and operated D&G Holdings LLC (D&G), a company providing laboratory and mobile phlebotomy services. For the 2011 through 2015 tax years, the Poimboeufs allegedly underreported their income and gross receipts from D&G on their joint personal federal income tax returns by submitting false information to two separate tax return preparers that omitted bank accounts and Forms 1099 that the accountants needed to accurately report their taxable income. The indictment charges that the Poimboeufs also improperly classified business receipts as non-taxable loan proceeds in an effort to reduce their income.
If convicted, Robert and Donna Poimboeuf each face a maximum sentence of five years in prison on the conspiracy counts and three years in prison on each false return count. The Poimboeufs also face a period of supervised release and monetary penalties. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
IRS-Criminal Investigation investigated the case. First Assistant U.S. Attorney Alexander Van Hook and Trial Attorney Kevin Schneider of the Tax Division are prosecuting the case.
Lincoln Man Sentenced for Possession with Intent to Distribute Methamphetamine and HeroinRead the Press Release
United States Attorney Joe Kelly announced that Porfirio Rodriguez Reyes, 39, of Lincoln, received sentences today of 57 months in prison for possession with intent to distribute five grams or more of actual methamphetamine and 57 months for possession with intent to distribute 100 grams or more of heroin. Those sentences are to run concurrently (at the same time). Following the prison term, Rodriguez Reyes will serve two years on supervised release. However, it is likely he will be deported to Mexico after he is released from prison.
In February and March of 2018, a confidential informant working with the Lincoln/Lancaster County Drug Task Force made two purchases of methamphetamine and five purchases of heroin from Rodriguez Reyes in Lincoln. The largest purchase of methamphetamine occurred on March 2, 2018. At that time, the confidential informant bought 78 grams of actual methamphetamine from Rodriguez Reyes. The largest purchase of heroin was 108 grams on February 23, 2018. The total amount of actual methamphetamine purchased from Rodriguez Reyes was 104 grams (approximately 3 ¾ ounces), and the total amount of heroin was 378 grams (13 ½ ounces).
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Kansas EMT Pleads Guilty to Stealing Morphine from VialsRead the Press Release
WICHITA, KAN. – An EMT in Jackson County, Kan., pleaded guilty Wednesday to stealing morphine from vials, U.S. Attorney Stephen McAllister said.
Colby W. VanWagoner, 33, Mayetta, Kan., pleaded guilty to one count of obtaining a controlled substance by deception and one count of making a false statement during an investigation.
The crimes took place while VanWagoner was working for the Jackson County Emergency Medical Service in Holton, Kan. In his plea, VanWagoner admitted he tampered with vials of morphine sulfate. He replaced morphine with saline solution and put the vials back into narcotic boxes on ambulances and in office stocks. Tests showed the concentration of morphine in vials that had been tampered with was low as 1 percent or less. The concentration of morphine should have been 100 percent.
Sentencing is set for March 12. The parties have agreed to recommend a sentence of five years on federal probation.
McAllister commended the Food and Drug Administration – Office of Criminal Investigations and Assistant U.S. Attorney Debra Barnett for their work on the case.
KC Man Indicted for Child Pornography, Arrested After Stand-off with PoliceRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who was arrested yesterday after an hours-long standoff with police officers was indicted by a federal grand jury for attempted distribution and possession of child pornography.
Eric C. Hacker, 36, was charged in a 10-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Dec. 11, 2018. That indictment was unsealed and made public following his arrest.
The federal indictment alleges that Hacker attempted to distribute child pornography over the internet on eight separate occasions between March 27, 2017, and June 2, 2017. The indictment also charged Hacker with one count of receiving child pornography over the internet and one count of possessing child pornography.
Hacker was arrested on Wednesday, Dec. 12, 2018, after he fled from police officers and barricaded himself for several hours inside of a storage container he had been using as a residence.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Justice Department Reaches Settlement with Nexstar Media Group Inc. in Ongoing Television Broadcaster Information Exchange InvestigationRead the Press Release
The Department of Justice announced today that it has reached a settlement with Nexstar Media Group Inc., one of the largest owners of television stations in the country, as part of its ongoing investigation into exchanges of competitively sensitive information in the broadcast television industry.
The Department filed an amended complaint today in the case United States v. Sinclair Broadcast Group, Inc., et al., adding Nexstar Media Group Inc. as a defendant. At the same time, the Department filed a proposed settlement with Nexstar that, if approved by the court, would resolve the competitive harm alleged in the complaint. The Department filed its original complaint in the case on Nov. 13, 2018, along with proposed settlements with six other television broadcasting companies.
“The Antitrust Division continues its efforts to stop the unlawful exchange of competitively sensitive information in the television broadcast industry,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Robust competition among broadcast stations allows American businesses to obtain competitive advertising rates. The unlawful sharing of information reduced that competition and harmed businesses and the consumers they serve.”
According to the amended complaint, Nexstar agreed with other entities in many metropolitan areas across the United States to exchange revenue pacing information, and also engaged in the exchange of other forms of non-public sales information in certain metropolitan areas. Pacing compares a broadcast station’s revenues booked for a certain time period to the revenues booked in the same point in the previous year. Pacing indicates how each station is performing versus the rest of the market and provides insight into each station’s remaining spot advertising for the period.
By exchanging pacing information, Nexstar and other broadcasters were better able to anticipate whether their competitors were likely to raise, maintain, or lower spot advertising prices, which in turn helped inform their stations’ own pricing strategies and negotiations with advertisers. As a result, the information exchanges harmed the competitive price-setting process.
The proposed settlement prohibits the direct or indirect sharing of such competitively sensitive information. The Department has determined that prohibiting this conduct would resolve the antitrust concerns raised as a result of Nexstar’s conduct. The proposed settlement further requires Nexstar to cooperate in the Department’s ongoing investigation and to adopt rigorous antitrust compliance and reporting measures to prevent similar anticompetitive conduct in the future. The settlement has a seven year term, and it will continue to apply to stations currently owned by Nexstar, even if those stations are acquired by another company.
Nexstar Media Group Inc. is a Delaware corporation with headquarters in Irving, Texas. It owns or operates 105 television stations across 93 markets and had revenues in excess of $1.2 billion in 2017.
As required by the Tunney Act, the proposed settlement, along with the Department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Owen Kendler, Chief, Media, Entertainment, and Professional Services Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 4000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Jury convicts California man of traveling to Atlanta to have sex with a nine-year-old childRead the Press Release
ATLANTA - Craig Alan Castaneda has been found guilty by a jury of traveling from San Diego to Atlanta to have sex with a nine-year-old girl and of enticing a minor to engage in illegal sexual activity.
“Prosecuting child predators is one of this office’s highest priorities,” said U.S. Attorney Byung J. “BJay” Pak. “We are proud of the work that our law enforcement partners do in pursuing these predators, and we remain steadfast in our commitment to work with them to bring these persons to justice.”
“This conviction is another example of the lengths child predators will go to prey on our children,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is also an example of the FBI’s determination to pursue them. We hope it also serves as a warning to predators who feel they can act out on the internet without fear of being caught.”
According to U.S. Attorney Pak, the charges and other information presented in court: In early April 2015, an FBI agent acting in an undercover capacity posted an ad on Craigslist in which he portrayed himself as a mother in search of a “teacher” for her nine-year-old daughter. The defendant responded to the ad the next day and described his previous experience in molesting children, including a child as young as four years old. He also said that he was “grooming” (that is, preparing) another child to be molested but that the family had moved away a few months earlier.
The defendant continued to communicate with the undercover agent for the next several weeks, and he made plans to travel from San Diego, California, to Atlanta, Georgia. In one of his final communications with the undercover agent before boarding a plane, he instructed the mother to obtain sex toys and lubricant. FBI agents met the defendant when he arrived at the Hartsfield-Jackson International Airport in Atlanta on May 2, 2015, and arrested him.
Craig Alan Castaneda, 39, of Imperial Beach, Calif., was indicted by a federal grand jury in the Northern District of Georgia, June 2, 2015, on one count of traveling from another state to engage in sexual activity with a child under the age of 12 years, and one count of enticing a minor to engage in illegal sexual activity.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Castaneda was convicted by a federal jury a three day trial. Sentencing for Castaneda has not yet been scheduled.
This case is being investigated by the FBI.
Assistant U.S. Attorneys Nicholas Hartigan and Paul R. Jones are prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Jury Finds New York City Man Guilty of Federal Drug Trafficking OffensesRead the Press Release
PITTSBURGH - After deliberating for approximately one hour, on December 12, 2018, a federal jury of six men and six women found Juan Wilquin Hernandez-Bourdier guilty of conspiracy to distribute and to possess with intent to distribute heroin and possession of heroin, United States Attorney Scott W. Brady announced today.
Hernandez-Bourdier was tried before United States District Judge Reggie B. Walton in Pittsburgh, Pennsylvania.
According to Assistant United States Attorney Ross E. Lenhardt who prosecuted the case, the evidence presented at trial established that on January 26, 2016, Hernandez-Bourdier was the front seat passenger in a 2002 Honda Odyssey minivan as it travelled eastbound across Route 80 in Western Pennsylvania. Because the windows were darkly tinted and the vehicle changed lanes without signaling, Trooper Reed Grenci stopped the vehicle. Grenci, a trained interdiction officer, noted many signs that the two occupants may possibly be smuggling illegal items or money and requested permission to search the vehicle. Since Trooper Grenci knew that the same type of vehicles had resulted in police locating a hidden aftermarket compartment in the rear bumper area, he went under the rear of the vehicle and observed the "trap". Once the hydraulically-operated trap was opened, it was found to hold four rectangular blocks which contained a total of 4,195 grams of heroin. The word "Ferrari" and the Ferrari horse symbol were found to be stamped into the kilograms of heroin. The outer layers of wrapping on those blocks consisted of coffee grounds and plastic wrap.
Lab analysis located two fingerprints of the driver on the kilogram packages and a box of plastic wrap and coffee grounds were contained within a backpack in the van. Lab analysis of a toothbrush in the backpack with the coffee grounds and plastic wrap revealed the DNA of Hernandez-Bourdier. The trial included evidence that the driver and passenger were related by marriage and that they were both originally from the Dominican Republic, but were living in the greater New York City area.
A Task Force Officer with the Drug Enforcement Administration (DEA) testified that a gram of heroin (for comparison’s sake, it was noted that in court that one gram is the same amount in a common package of coffee sweetener) contains approximately 50 "stamp bags," or single serving dosage units of heroin, and that while many factors can affect the price of a stamp bag, single bags are commonly sold for approximately $10 each in Western Pennsylvania. As such, the amount of heroin located would be nearly 210,000 stamp bags worth more than $2 million on the street.
The driver of the vehicle, Habys Meran, while on house arrest, cut off his house arrest bracelet and fled. He is currently a wanted fugitive and individuals with information regarding his whereabouts may contact the United States Marshals Service Fugitive Unit at 412-644-6627. All individuals may remain anonymous and monetary rewards are possible.
Judge Walton scheduled sentencing for May 10, 2019 at 11 a.m., after the preparation of a Pre-Sentence Report by the United States Probation Office. In most circumstances, the law provides for a total sentence of at least 10 years in prison, a fine of up to $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded the defendant to jail in the custody of the United States Marshals Service.
The Pennsylvania State Police (PSP) and Homeland Security Investigations (HSI) joined forces to conduct the investigation that led to the prosecution of Hernandez-Bourdier, with the valuable assistance of the Drug Enforcement Administration, as well as laboratory analysis by the PSP and HSI labs.
Jury Convicts Former Tigard Resident for Defrauding Investors in Ohio Gold MineRead the Press Release
PORTLAND, Ore.—On Wednesday, December 12, 2018, a federal jury in Portland returned guilty verdicts against Harry Dean Proudfoot III, 78, formerly of Tigard, Oregon, for running a fraudulent gold mining investment scheme that he used to steal $3.2 million from 140 investors. Proudfoot was convicted of conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering.
“Harry Proudfoot and his children made many promises to their investors—promises they never intended to fulfill. They now join a long list of financial criminals whose schemes were cut short by diligent investigators working on behalf of victims. Pursuing criminals who prey on unknowing investors is a top priority for federal law enforcement in Oregon,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“The FBI is committed to investigating fraud schemes and deceptive practices by those who can cause devastating and irreparable financial harm to the members of our community. Together with its law enforcement partners, the FBI is dedicated to protecting the interests of the American public, so they can both invest and lend with confidence,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
“Mr. Proudfoot and his children built a ‘house of cards’ with their false promises and when it collapsed, as these houses do, IRS-Criminal Investigation is proud to support its law enforcement partners to expose and bring to justice those responsible,” said IRS-Criminal Investigation Special Agent in Charge Darrell Waldon.
According to court documents and information shared at trial, in 2008, Harry Proudfoot created 3 Eagles Research and Development, a company based in Tigard that he used from 2008 through 2012 to solicit investors for a purported goldmining operation in Ohio. Harry Proudfoot, along with his adult children, including co-defendant Matthew Proudfoot, falsely promised to use investors’ money to purchase mining equipment and conduct mining operations at two gravel pits in Ohio.
To entice investors, Proudfoot and his children offered high rates of return, typically 10% of gross revenues, payable once the mine became operational. They falsely told investors they had all the necessary legal and business requirements in place for the mining operation.
At the same time, Proudfoot and his children withheld important facts from investors including that Harry Proudfoot had received cease and desist orders from the States of Alaska and Oregon for selling unregistered securities through material misrepresentations in 1992, 1993, and 2003 and that Matthew Proudfoot had filed for bankruptcy in 2010. Rather than using investor money as promised they diverted it to their personal use, funding living expenses, cars, travel, credit card bills, medical payments, lulling payments and other expenses to keep the scheme afloat.
In 2011, the States of Washington and Colorado and the U.S. Securities and Exchange Commission (SEC) began investigating the group for securities violations. Ultimately, the U.S. District Court for the District of Oregon entered a judgment against Harry Proudfoot, Matthew Proudfoot and the 3 Eagles Research and Development Company in the SEC enforcement action.
Harry Proudfoot faces a maximum sentence of 20 years in prison, a $250,000 fine and three years’ supervised release on each count of wire fraud and 10 years in prison, a $250,000 fine and three years’ supervised release on each count of money laundering. He will be sentenced on April 3, 2019 before U.S. District Court Judge Michael H. Simon.
Co-defendant Matthew Proudfoot pleaded guilty to wire fraud and money laundering on November 1, 2017. He will be sentenced on January 9, 2019.
The case was investigated by the FBI and IRS-Criminal Investigation, and prosecuted by Scott E. Bradford and John C. Brassell, Assistant U.S. Attorneys for the District of Oregon.
Jacksonville Man Arrested on Federal Charge for Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces today that Jason Ryan Fain (37, Jacksonville) has been arrested and charged in a criminal complaint with possessing videos and images depicting the sexual abuse of children. Fain faces a maximum penalty of 20 years in federal prison, and a potential life term of supervised release. He is detained pending a detention hearing scheduled for December 17, 2018.
According to the complaint, on January 9, 2017, an officer with the Jacksonville Sheriff’s Office responded to a citizen complaint at a residence in Jacksonville where Fain resided. The officer recovered a USB thumb drive that allegedly belonged to Fain, and believed to contain child pornography. A search of the thumb drive revealed 3,614 images and 7 videos depicting child pornography, together with “selfie”-type photos depicting Fain.
On October 27, 2017, Fain was arrested in Youngstown, Florida. During an interview, he admitted that the thumb drive belonged to him and that it contained “hundreds” of pornographic images of children that he had obtained from the internet. A forensic analysis of the drive confirmed that it had accessed a particular file-sharing network on the internet and that it also contained at least one document in Fain’s name.
This case was investigated by the Jacksonville Sheriff’s Office, the Bay County Sheriff’s Office, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jackson Man Sentenced to Three Years in Federal Prison under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Jerrod Domonique Cowards, 25, of Jackson, was sentenced today by Senior United States District Judge Tom S. Lee to serve 37 months in federal prison, followed by 3 years supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst. Cowards was also ordered to pay a $1,500.00 fine.
On May 1, 2018, officers with the Clinton Police Department were on patrol in the area of Highway 80 and Shaw Road in Clinton, Mississippi. One officer noticed a silver Ford Fusion on the road without the tag illuminated as required by law. The officer stopped the vehicle and noticed an odor of marijuana coming from the vehicle. The officer ultimately searched the vehicle and found a firearm underneath the front passenger seat where Cowards was sitting. Cowards admitting to possessing the firearm that was found underneath his seat. Cowards had a prior felony conviction from Rankin County Circuit Court in 2011.
The case was investigated by the Federal Bureau of Investigation and the Clinton Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Erin Chalk.
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 program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Jackson Man Sentenced to Three Years in Federal Prison for Stealing Identity of a Veteran and Theft of Veteran BenefitsRead the Press Release
Jackson, Miss. – Tierun Bush, 56, of Jackson, was sentenced today by Senior U.S. District Judge Tom S. Lee to serve 36 months in federal prison for aggravated identity theft and theft of government funds and property, announced U.S. Attorney Mike Hurst. Judge Lee also ordered Bush to pay full restitution to the Department of Veterans Affairs.
From 2005 to 2018, Bush used the name, social security number and other identifiers of a U.S. military veteran to fraudulently receive narcotics, medical care, medical equipment, and financial assistance for the cost of housing from the United States Department of Veterans Affairs. Bush, who is not a military veteran, was a long time patient at the G.V. "Sonny" Montgomery VA Medical Center in Jackson under the name of the victim whose identity he stole. When first approached by agents from the Department of Veterans Affairs, Bush provided the name of the victim as his own but quickly confessed when he was told by agents that they had already interviewed the victim, who lives out of state. By fraudulently using the identity of a veteran, Bush was able to obtain goods and services from government valued at over $133,603.93, which he will be required to pay in restitution as a part of his sentence.
The case was investigated by the Office of the Inspector General of the Department of Veterans Affairs. The case was prosecuted by Assistant United States Attorney Dave Fulcher.
Illegal Alien Sentenced to 37 Months and Fined $15,000Read the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that JOSE ARTEAGA-CENTENO, age 44, a native of Mexico, was sentenced yesterday after pleading guilty to a one-count indictment for illegal reentry of a removed alien.
According to court documents, on March 8, 2018, ARTEAGA-CENTENO was found in the United States after having been previously deported from the United States on May 24, 2013. Further, on September 29, 2011, ARTEAGA-CENTENO was previously convicted of a felony.
United States District Court Judge Martin L.C. Feldman sentenced ARTEAGA-CENTENO to thirty-seven (37) months in prison, and ordered him to pay a $15,000 fine. A three year term of supervised release was also imposed, in addition to a $100 special assessment fee. Following the completion of his sentence, the defendant will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
U.S. Attorney Strasser praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Hospice Care Provider Pays Nearly $6 Million to Resolve False Claims Act AllegationsRead the Press Release
PHILADELPHIA - U.S. Attorney William M. McSwain announced today that SouthernCare, Inc., a hospice care provider, has agreed to pay $5,863,426 to the federal government to resolve allegations that the company violated the False Claims Act by submitting claims to Medicare for hospice care that was medically unnecessary or lacked documentation.
The settlement resolves allegations in two separate complaints filed in federal court in the Eastern District of Pennsylvania by whistleblowers under the qui tam provisions of the False Claims Act. These provisions allow private citizens to bring civil actions on behalf of the United States and share in any recovery. The whistleblowers, Dawn Hamrock and Patricia Beegle, will share approximately $1.1 million of the recovery between them. Both whistleblowers were former employees of SouthernCare.
In their qui tam complaints, the whistleblowers generally alleged that SouthernCare provided hospice care to patients who were not eligible under the Medicare program. To be eligible, hospice care must be reasonable and necessary, a physician must certify that the patient’s life expectancy is six months or less, and the provider must satisfy other documentation requirements. The whistleblowers alleged that SouthernCare admitted patients into hospice who were not terminally ill and lacked appropriate medical documentation showing such an illness. The company allegedly treated some patients for many years. This settlement agreement resolves the allegations arising from SouthernCare’s facilities in Pennsylvania from January 2009 through December 2014.
“My office takes whistleblower allegations very seriously, and we will hold accountable anyone who defrauds taxpayers,” said U.S. Attorney McSwain. “The False Claims Act gives us a powerful tool to do that. We thank Ms. Hamrock and Ms. Beegle for playing a vital role in the resolution of this case. Together with their lawyers, these two citizens provided essential assistance to the government. Without the willingness of relators to shed light on allegations of fraud, preserving government program funds would be far more challenging.”
“Unnecessarily admitting people into hospice is particularly dangerous, as it can cause patients who are not terminally ill to stop seeking treatments for recovery,” said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “HHS-OIG will continue to work with the U.S. Attorney’s Office to ensure federally funded healthcare resources are used appropriately.”
There has been no determination of civil liability. The settled civil claims are allegations only.
This case was handled by Assistant United States Attorneys Michael S. Macko and Anthony D. Scicchitano, with investigative assistance from auditor George Niedzwicki and the U.S. Department of Health and Human Services Office of the Inspector General.
Honduran National Pleads GuiltyRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced today that a man from Honduras pleaded guilty to making false statements after trying to obtain a Louisiana driver’s license illegally.
Will Avila, 36, pleaded guilty before U.S. District Judge Dee. D. Drell to one count of making a false statement. According to the guilty plea, Avila entered a Louisiana Office of Motor Vehicles location in Breaux Bridge, Louisiana on January 10, 2018, and attempted to apply for a Louisiana driver’s license. Avila used the name and Social Security card of a Puerto Rican citizen to fill out the driver’s license application. A special agent with the Immigration and Customs Enforcement questioned Avila, and the defendant made false statements in an attempt to maintain the false identity he used to apply for the driver’s license.
Avila faces up to five years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for March 7, 2019.
Homeland Security Investigations and U.S. Immigrations and Customs Enforcement conducted the investigation. Supervisory Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
Greenville Gang Member Sentenced to 204 Months’ ImprisonmentRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced JERRELL ANTWAN JENKINS, 33, from Greenville, North Carolina, to 204 months in prison, followed by 5 years of supervised release.
JENKINS was charged in a 14-count superseding indictment filed in the Eastern District of North Carolina December 20, 2017. On July 23, 2018, JENKINS pled guilty to three counts of the Superseding Indictment, which charged him with conspiracy to distribute and possess with the intent to distribute a quantity of cocaine and heroin, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime.
JENKINS was charged as a result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Greenville Police Department. As part of that investigation, officers conducted a series of controlled purchases of cocaine, heroin, fentanyl, and firearms from JENKINS in Greenville between November 2016 and June 2017. JENKINS was identified as a high-ranking member of the Absolute Blood Mafia gang in Greenville.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Greenville Police Department. Assistant United States Attorney Laura Howard prosecuted the case on behalf of the United States.
Four South Florida Residents and Jet Link, Inc. Charged with Aircraft Parts FraudRead the Press Release
Four individuals and a company were charged in a five-count indictment in connection with their operation of Jet Link, Inc., an aircraft parts broker based in Margate, Florida.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Wendell W. Palmer, Special Agent-in-Charge, U.S. Air Force Office of Special Investigations - Office of Procurement Fraud, Detachment 5, Dobbins ARB, GA, Frank Robey, Director, U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (CID-MPFU), John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office made the announcement.
Robert Cantone, 73, of Coral Springs, Alex Cantone, 41, of Sunrise, Brenda Snelgrove, 58, of Coconut Creek, Ronald Burns, 45, of Hollywood, and Jet Link, Inc, operating out of Margate, Florida were charged in the indictment (Case No. 18-CR-60329). R. Cantone, A. Cantone, Snelgrove and Burns have been arrested. R. Cantone and Snelgrove had their initial appearances in Miami. A. Cantone will have his initial hearing today in the Northern District of Texas. Burns remains a fugitive. Each defendant faces charges of conspiracy to commit aircraft parts fraud and aircraft parts fraud, in violation of Title 18, United States Code, Section 38. If convicted on any one of the counts alleged in the indictment, the defendants each face a maximum statutory sentence of up to ten years in prison, and Jet Link, Inc. faces a fine of up to $10,000,000.
According to conduct alleged in the indictment, R. Cantone, A. Cantone, Snelgrove, and Burns, would unjustly enrich themselves by fraudulently winning contracts for the supply of military aircraft parts to the Defense Logistics Agency (DLA), by supplying the DLA with false certifications on their electronic bid quotations, wherein they stated JET LINK “currently possesses the material,” and that the parts were “inspected for correct part number and for absence of corrosion or any obvious defects,” were “in its original package,” and were “new, unused, and not of such age or so deteriorated as to impair its usefulness or safety,” when in fact such parts were not purchased until after the contracts had been awarded by DLA. These parts were thereafter shipped to the Department of Defense, and were often either non-conforming or substandard.
“This indictment and the related arrests demonstrate that the U.S. Attorney’s Office remains committed to protecting the integrity of the defense procurement process,” stated U.S. Attorney Fajardo Orshan. “We will continue to prosecute those individuals who choose to manipulate the system for their financial gain.”
"The Air Force Office of Special Investigations, along with its law enforcement partners, has, and always will, aggressively identify and investigative anyone who attempts to commit aircraft part fraud and put our nation's warfighters at risk," stated Special Agent-in-Charge Wendell W. Palmer, U.S. Air Force Office of Special Investigations - Office of Procurement Fraud, Detachment 5, Dobbins ARB, GA.
“These arrests represent the unwavering commitment by DCIS and our investigative partners to ensure that the Defense procurement system is protected from unscrupulous contractors who choose illicit profits over quality and integrity. DCIS will pursue anyone who uses fraud and deception to undermine our critical warfighting missions or compromise safety in DoD programs and activities," stated John F. Khin, Special Agent in Charge, Southeast Field Office, DCIS.
“Defrauding the government and providing substandard components intended for use in U.S. military aircraft puts our service members in harm’s way,” said Special Agent in Charge Mark Selby of HSI Miami. “HSI will continue to work with our partners at the Department of Defense and aggressively target individuals and companies engaged in this type of criminal act.”
U.S. Attorney Fajardo Orshan commended the investigative efforts of the U.S. Air Force Office of Special Investigations, U.S. Army CID-MPFU, DCIS, and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Marc Anton.
An indictment is a charging instrument containing accusations. A defendant is presumed innocent unless and until proven guilty in a court of law.
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.
Four Men Enter Guilty Pleas for Their Role in Conspiracy to Murder Federal Bureau of Prisons Correctional Officer Osvaldo Albarati-CasañasRead the Press Release
SAN JUAN, P.R. – On Friday, December 7, 2018, four men entered guilty pleas for their roles in the conspiracy to murder Lieutenant Osvaldo Albarati-Casañas, a Federal Bureau of Prisons Correctional Officer, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. Lieutenant Albarati was murdered on February 26, 2013.
On January 28, 2015 a Federal Grand Jury in the District of Puerto Rico returned a six count indictment charging nine individuals for the murder of Lieutenant Albarati: Ángel D. Ramos-Cruz, a.k.a. “Api;” Miguel Díaz-Rivera, a.k.a. “Bolo;” Juan Quiñones-Meléndez, a.k.a. “El Manco;” Orlando Mojica-Rodríguez, a.k.a. “Yogui;” Jayson Rodríguez-González, a.k.a. “Gonzo;” and Alexander Rosario de León, a.k.a. “Coquí”. Defendants Carlos Rosado-Rosado, a.k.a. “Cano;” and Jancarlos Velázquez-Vázquez, a.k.a. “Jan,” pleaded guilty on August 13, 2018.
On December 7, 2018, Ángel D. Ramos-Cruz, Juan Quiñones-Meléndez, Orlando Mojica-Rodríguez, and Jayson Rodríguez-González entered pleas of guilty to the pending indictment. As part of the plea agreement, the defendants acknowledged that they conspired to murder Lt. Albarati as a direct result of continuous seizures of contraband by Albarati and other correctional officers. At the time of the conspiracy, Ramos-Cruz was an inmate at the facility and from inside MDC, he contacted an associate, Quiñones-Meléndez, a.k.a. “El Manco”, and requested that “El Manco” recruit the triggermen to carry out the hit or “vuelta.”
“Vuelta” which translates in English to “turn” or “errand” was a term that the organizations of Orlando Mojica-Rodríguez and Quiñones-Meléndez would use to describe a plan to commit a murder. Quiñonez-Meléndez contacted his fellow associate Orlando Mojica-Rodríguez a.k.a. “Yogui,” to shore up resources and triggermen. Quiñones-Meléndez recruited Carlos Rosado-Rosado, a.k.a. “Cano” and Jayson Rodríguez-González, a.k.a. “Gonzo,” to participate in the murder of Lt. Albarati. Meanwhile, Mojica-Rodríguez recruited Alexander Rosario de León, a.k.a. “Coqui,” as an additional enforcer to participate in the murder. Rosado-Rosado and Rosario de León had previously entered guilty pleas.
The murder of Lt. Albarati was carried out on February 26, 2013, as planned. Co-defendant, Oscar Martínez-Hernández was found guilty by a jury on September 20, 2018, for his role in the conspiracy as well. His sentence is scheduled for January 22, 2019.
“Throughout his law enforcement career, Lieutenant Albarati’s service was exemplary, selfless and courageous,” said United States Attorney Rosa Emilia Rodríguez-Vélez. “With this conviction we take another step towards our goal of holding those who carried out this reprehensible and senseless murder accountable for their actions. The Department of Justice will continue to honor Lieutenant Albarati’s legacy as a public servant, his dedication to safeguard the community, and his integrity.”
The murder of government employees and officials is a crime punishable by death or imprisonment for any term of years or for life. Murder for hire is a crime punishable by death or imprisonment for any terms of years or for life. Use of a firearm resulting in death is also punishable by a maximum term of life.
The case was investigated by the FBI with the collaboration of the U.S. Department of Justice, Office of the Inspector General, Miami Field Office, the Federal Bureau of Prisons, DEA, ATF, the United States Marshals Service, ICE-HSI, the Puerto Rico Police Department, the San Juan Municipal Police, and other law enforcement agencies that covered hundreds of leads developed as a result of the investigation.
The case was prosecuted by Assistant United States Attorneys Nicholas W. Cannon and Max Pérez-Bouret.
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Former University of Michigan Doctor Sentenced on Child Exploitation ChargesRead the Press Release
DETROIT – A former University of Michigan doctor was sentenced today to 10 years in prison on child exploitation charges, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Steve Francis, Department of Homeland Security Investigation (HSI).
Sentenced was Mark Hoeltzel, 47, of Ann Arbor, Michigan. Hoeltzel pleaded guilty on September 13, 2018 before U.S. District Judge Arthur Tarnow to online enticement of a minor.
According to court records, in 2017, Hoeltzel, a pediatric rheumatoid arthritis doctor, created a Facebook account for a fictitious teenage boy and used this persona to engage in online conversations with numerous minor girls across the country. During these conversations, Hoeltzel was able to convince the minor girls to produce child pornography.
“The Department of Justice is committed to the safety and well-being of the most vulnerable members of our society – our children,” stated United States Attorney Matthew Schneider. “This defendant pretended to be a teenage boy in order to sexually exploit minors, many the same age as the patients he treated.”
"The sentencing handed down in this case reflects the serious nature of the crimes committed, which are particularly troubling given the defendant's role in the community as a physician,'" said Steve Francis. “Mr. Hoeltzel abandoned his oath to "do no harm" and instead sought opportunities to harm and exploit innocent children. This case shows that HSI is committed to investigating child predators regardless of the positions they hold in society.”
This case was investigated by agents of the HSI and detectives from the University of Michigan Police Department, Special Victims Unit. Assistant U.S. Attorney Sara Woodward prosecuted the case.
Former Trucking Logistics Employee Sentenced to 5 Years in Prison for Fake Advertising SchemeRead the Press Release
COLUMBUS, Ohio – John E. Kelly, 63, of Columbus, Ohio, was sentenced in U.S. District Court to 60 months in prison for mail fraud and tax evasion as part of a scheme to defraud his employers of approximately half a million dollars. He was also ordered to pay full restitution to the victim companies and the IRS. He pleaded guilty in May 2018 to one count each of mail fraud and tax evasion.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Todd Wickerham, Federal Bureau of Investigation (FBI), Cincinnati Division and Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service, Pittsburgh Division, announced the sentence handed down today by Senior U.S. District Judge James L. Graham.
According to court documents, in 2014 and 2015, Kelly was employed at two different trucking logistics companies – CEVA Logistics and Container Port Group, Inc.
During that time, Kelly defrauded the two companies by causing them to pay for bogus advertising expenditures from a pair of sham companies that Kelly set up for his own gain.
Kelly billed the trucking companies more than half a million dollars for advertising services that were never actually provided. Instead, he took the payments and used them to pay personal expenses. He caused an actual loss of $461,000 from CEVA and CPG.
For example, Kelly served as CEVA’s director of recruiting and was able to set up new advertising vendors for payment. He instructed a direct-report employee to add a nominee company (that he controlled) to CEVA’s approved-vendor list. Kelly then began submitting bogus advertising invoices to CEVA from his company. From approximately March 2014 through March 2015, Kelly caused the submission of at least 65 invoices to CEVA totaling $485,670. CEVA paid out $438,030 of the invoices via checks, which were mailed to a Post Office Box that Kelley controlled in Lewis Center, Ohio.
Kelly was terminated from CEVA in April 2015 and then hired by CPG. He renamed his vendor company and began the scheme again, billing CPG for fake advertising services in the amount of $29,461. Nearly $23,000 was actually paid.
The defendant created email accounts and used fake identities as well as phony corporate registrations and Taxpayer/Employer Identification Numbers when corresponding with CEVA and CPG to conceal his involvement with the nominee companies.
“Kelly went to great lengths to perpetrate his years-long fraud, U.S. Attorney Glassman said. “He formed and used multiple shell companies and created fictitious ‘employees’ of those companies to interact with real employees at his legitimate employers. Although his means were sophisticated, at bottom Kelly was a thief. He stole from the companies that employed him and from the IRS. For that, he deserves the five years in prison that the district court imposed today.”
Kelly also failed to file an individual or business tax return for 2014 and 2015. As a result, he had a tax due and owing (representing both his wages and embezzlement income) of at least $70,500 for each year.
U.S. Attorney Glassman commended the investigation of this case by IRS Criminal Investigation, the FBI and USPIS, as well as Assistant United States Attorney Noah R. Litton, who is prosecuting the case.
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Former South Florida Attorney and Stock Promoter Plead Guilty to Conspiracy to Commit Securities Fraud in Relation to Pump and Dump Stock Manipulation SchemeRead the Press Release
A former South Florida attorney and a stock promoter pled guilty today in connection with a $1 million pump and dump securities fraud scheme involving the shares of Valentine Beauty, Inc. (“VLBI”).
Ariana Fajardo Orshan, United States Attorney, Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami Field Office made the announcement.
Mark E. Fisher, 53, of Boca Raton, Florida, and Joseph F. Capuozzo, 57, of Davie, Florida, pled guilty before U.S. District Judge Kathleen M. Williams, in Miami, to one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 371, in Case No. 18-CR-20823. Judge Williams is scheduled to sentence Capuozzo on February 21, 2019 and Fisher on March 25, 2019. Each defendant faces a maximum statutory sentence of up to five years in prison and a fine up to $250,000 or double the gross proceeds of the offense.
Previously, Eddy Ubaldo Marin, 56, of Ft. Lauderdale, Florida, and Shane R. Spierdowis, 27, formerly of Boca Raton, were charged with securities fraud offenses in connection with the same VLBI scheme. Marin pled guilty and was sentenced on September 5, 2018, to 210 months in prison by U.S. District Judge Darrin P. Gayles (Case No. 18-CR-20354-DPG). Spierdowis also pled guilty and was sentenced by U.S. District Judge Ursala Ungaro to 5 years on probation. (Case No. 18-CR-20355-UU).
According to court documents, VLBI was a beauty products supply company with operations in Sunrise, Florida, that marketed its products on television infomercials and elsewhere. Shares of VLBI stock were publicly traded and quoted over the counter on OTC Link. In approximately November 2013, Marin and other accomplices arranged to secretly obtain a controlling interest in VLBI stock by issuing shares to certain third parties, including Green Tree Capital, Inc., a company controlled by Marin and Capuozzo, based in Ft. Lauderdale, Florida.
Fisher, formerly a practicing lawyer licensed to practice in Florida and New York, was a securities lawyer based in Boca Raton who allegedly became involved with the manipulation of VLBI shares at the invitation of Marin. Fisher allegedly executed various false and fraudulent documents to facilitate the scheme, including certain legal opinion letters that falsely indicated that shares controlled by Marin and other conspirators, were not in fact owned or controlled by “affiliates” of the companies. Such letters allowed shares of VLBI to be falsely classified as “free trading” and thus sold to the public, when in reality that were restricted. In March and April, 2014, Marin, Fisher, Capuozzo, Spierdowis, and other conspirators arranged to transfer a substantial number of shares into brokerage accounts in the name of fictitious entities, but in reality controlled by the conspirators. In addition, according to court documents, Fisher, Capuozzo and other conspirators knew that Marin was a convicted felon and attempted to conceal his role in the scheme by keeping his name off of corporate documents. To facilitate the concealment of Marin’s role, Capuozzo became the listed owner of an entity that held Marin’s VLBI shares and traded the shares at the direction of Marin. Capuozzo also served as the nominee Chief Executive Officer of VLBI, while acting at the direction of Marin and the conspirators.
Thereafter, beginning in approximately May 2014 and continuing through in or around September 2014, Marin, Fisher, Capuozzo, Spierdowis, and others arranged for VLBI to issue rosy press releases, while also using internet marketing and penny stock newsletters to tout VLBI stock. These efforts were intended to artificially increase the trading volume and price of VLBI shares, so that Marin, Fisher, Capuozzo, Spierdowis and their co-conspirators could secretly sell shares at a profit. During the conspiracy period, the conspirators sold approximately $1 million worth of VLBI shares to the investing public.
In approximately June 2014, Marin began a term of federal imprisonment due to a different federal offense, and was ultimately incarcerated at FCI Miami. While Marin was at FCI Miami, Fisher, Capuozzo, Spierdowis, and others continued the stock manipulation scheme, while keeping a larger portion of the trading profits for themselves. The conspirators continued to sell shares of VLBI, while continuing the same pattern of issuing press releases and engaging in coordinated sales of shares, until approximately April 26, 2016, when trading in VLBI shares was suspended by the U.S. Securities and Exchange Commission (SEC).
Previously, the SEC filed parallel civil enforcement actions against Fisher, Capuozzo, Marin and Spierdowis.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office. She also thanked the SEC’s Miami Regional Office for their assistance. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy, and Assistant U.S. Attorney Alison Lehr is handling asset forfeiture related to the matter.
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.
Former President of Investment Adviser Firm Pleads Guilty to Defrauding ClientsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that HECTOR MAY, the president of Executive Compensation Planners, Inc. (“ECP”), a registered investment adviser and financial planning firm located in New City, New York, pled guilty today to participating in a conspiracy to defraud certain investment advisory clients (the “Victims”) out of more than $11 million. MAY pled guilty before U.S. Magistrate Judge Judith C. McCarthy.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As Hector May admitted today, for decades he and his co-conspirator violated his clients’ trust by siphoning money from their accounts to line their pockets and continue to perpetrate their illegal scheme. In total, May and his co-conspirator stole more than $11 million. Now, he has confessed to his crimes and faces significant time in prison.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “This case has all the markings of a classic Ponzi Scheme with payments made to investors with other investor money, bogus account statements, etc. Mr. May also used investor money to pay personal and business expenses. His day of reckoning has arrived.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Hector May spent decades defrauding investors and gaming the system to make himself wealthier, all at the expense of those who trusted him to serve as a responsible steward of their funds. This kind of criminal behavior undermines the strength and security of our financial systems. Today’s conviction should serve as a warning to those who think they can get away with similar schemes -- the FBI and our law enforcement partners will discover the truth and hold you accountable for your actions.”
According to the Information filed today, to which MAY pled guilty:
Since 1982, MAY has been the president of ECP and has provided financial advisory services to numerous clients. Since 1994, MAY has been a registered representative of a broker dealer (“Broker Dealer-1”). In its role as a broker dealer, Broker Dealer-1 facilitated the buying and selling of securities for clients of Broker Dealer-1’s registered representatives, including clients of MAY. To that end, Broker Dealer-1 and associated clearing firms maintained securities accounts for ECP’s clients and, through those accounts, held ECP’s clients’ money, executed their securities trades, produced account statements reflecting activity in the clients’ accounts, and forwarded these account statements to ECP’s clients.
In order to obtain money from the Victims’ securities accounts with Broker Dealer-1, MAY advised the Victims, among other things, that they should use money from those accounts to have ECP, rather than Broker Dealer-1, purchase bonds on their behalf. He further represented that by purchasing bonds through ECP directly, the Victims could avoid transaction fees. Because MAY lacked the authority to withdraw money directly from the Victims’ accounts with Broker Dealer-1, he persuaded the Victims to withdraw the money themselves and to forward that money to an ECP “custodial” account (the “ECP Custodial Account”), so that he could use the money to purchase bonds on their behalf.
With the assistance of his co-conspirator (“CC-1”), MAY guided the Victims, first, to withdraw their money from their Broker Dealer-1 accounts, and second, to send that money to the ECP Custodial Account by wire transfer or check. At times, MAY falsely represented that the funds being withdrawn from Victims’ Broker Dealer-1 accounts were the proceeds of prior bond purchases MAY had made. After the Victims sent their money to the ECP Custodial Account, MAY did not use the money to purchase bonds. Instead, MAY and CC-1 spent the money on business expenses, personal expenses, and to make payments to certain Victims in order to perpetuate the scheme and conceal the fraud.
Specifically, in some cases, MAY used Victims’ funds to make purported bond interest payments to other Victims. In other cases, MAY used Victims’ funds to make payments to other Victims who wished to withdraw funds from their accounts. MAY and CC-1 also created phony “consolidated” account statements that they issued through ECP and sent to the Victims. These “consolidated” account statements purported to reflect the Victims’ total portfolio balances and included the names of bonds MAY falsely represented that he purchased for the Victims and the amounts of interest the Victims were supposedly earning on the bonds. In order to create the phony consolidated account statements, MAY provided CC-1 with bond names and false interest earnings, and CC-1 created ECP computerized account statements and had them distributed to the Victims.
To keep track of the money that the co-conspirators were taking from the Victims, CC-1 processed the Victims’ payments for the purported bonds, entered them in a computerized accounting program, and, through that program, kept track of how MAY and CC-1 received and spent the Victims’ stolen money. In this way, from the late 1990’s through March 9, 2018, MAY and CC-1 induced Victims to forward them more than $11,400,000.
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MAY, 77, of Orangeburg, New York, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; and one count of investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $10,000 or twice the gross gain or loss from the offense. Sentencing before Judge Vincent L. Briccetti has been scheduled for March 15, 2019.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the U.S. Postal Inspection Service, Special Agents of the United States Attorney’s Office, and the Federal Bureau of Investigation.
In a related case, the Securities & Exchange Commission brought a civil action today against May and another in the White Plains federal court.
The criminal case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Margery B. Feinzig and Vlad Vainberg are in charge of the prosecution.
Former OU Football Player Sentenced to the Maximum Penalty for Defrauding Investors of Nearly $900,000Read the Press Release
TULSA, Okla. – A former University of Oklahoma football player has been ordered to federal prison following his conviction of conspiracy to commit wire fraud in a scheme that defrauded investors of $869,300 announced U.S. Attorney Trent Shores. Timothy Hamilton, 31, of Dallas, Texas, pleaded guilty Sept. 14, 2018.
Today, U.S. District Judge John E. Dowdell sentenced Hamilton to the maximum allowable penalty of 60 months in prison to immediately be followed by three years of supervised release.
The court also ordered a criminal forfeiture money judgement in the sum of $869,300, representing proceeds obtained through the conspiracy. All monies will go to provide restitution to the victims.
“T.J. Hamilton’s extravagant and indulgent lifestyle was fraudulently built on the financial savings of those who believed in him. Hamilton persuaded investors to part with their money by exploiting his status as a former University of Oklahoma football player, using his church connections, making a false claim that he was a chemical engineer, and through the bogus endorsements of his products supposedly from former University of Oklahoma athletes,” said U.S. Attorney Trent Shores. “Hamilton repeatedly lied to 18 investors in order to bilk them out of almost $900,000. He compounded his crime by lying under oath in civil suits brought by those same investors in order to conceal his crimes. His scheme had a severe impact on victims, most notably a widow who lost her life savings. In court today, T.J. Hamilton faced those he cheated. He now has to deal with the consequences of his criminal actions.”
Victims told the court at length how Hamilton’s fraud harmed their professional and personal reputations. They further expressed that they trusted Hamilton and wanted to support his vision. Instead he cheated them. The financial impact of his fraud was devastating.
In handing down the sentence, Judge Dowdell noted that Hamilton had many opportunities in the course of his business ventures to inform investors of initial business failures, but he continued to accumulate investors, systematically draining members of his church and others of an exorbitant amount of money. The judge further noted that Hamilton’s charm, innate intelligence and ability to lie without remorse allowed him to steal almost $900,000 from victims in order to live lavishly.
At his plea hearing, Hamilton, who goes by T.J. Hamilton, admitted to promoting false investment opportunities relating to business ventures that were purportedly going to produce and market sportswear and nutritional supplements. At the time of his crime, Hamilton was a resident of Oklahoma.
As part of the scheme, Hamilton established and claimed to be the President and CEO of multiple companies. The Clean Athlete, LLC, established in 2011, promoted sportswear that could supposedly control the sweat and odor that comes with athletic play. Two other companies, Clean Athlete Nutrition, LLC, and Complete Athlete Nutrition, LLC, both established in 2012, claimed to create supplements that would improve athletes’ metabolism. His parents, Gena and Timothy Hamilton, were managing members of the companies. They both pleaded guilty on Sept. 14, 2018, for providing false income information in order to receive a car loan from a bank.
Upon receipt of investor funds, the Hamiltons used a majority of the money for personal gain, primarily for T.J. Hamilton’s country music career ambitions and his extravagant lifestyle.
The Department of Treasury, Internal Revenue Service—Criminal Investigation Division investigated the case. Assistant U.S. Attorneys Kevin C. Leitch, Richard M. Cella, Charles M. McLoughlin and Catherine J. Depew prosecuted the case.
Former Frederick Business Owner Sentenced to 17 Years in Federal Prison for Bank Fraud of More Than $49 MillionRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Mark Ian Gaver, age 56, of Bonita Springs, Florida, and previously of Middletown, Maryland, today to 17 years in federal prison, followed by three years of supervised release, on his conviction for eight counts of bank fraud and two counts of money laundering arising from a scheme in which he obtained over $49 million in bank financing for his company Gaver Technologies, Inc., d/b/a GTI Federal (GTI), using false and fraudulent financial statements, balance sheets, and certifications of outstanding accounts receivable. Judge Bennett also ordered Gaver to forfeit assets valued at approximately $4.2 million, and pay restitution in the amount of $48,774,308.75. A federal jury convicted Gaver on August 1, 2018. Gaver has been in custody since his arrest on November 15, 2017, when he entered the United States from Canada.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation (FBI), Baltimore Field Office; and Acting Special Agent in Charge Robert W. Manchak, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), Northeast Region.
“Mark Gaver committed a massive fraud to maintain his lavish lifestyle,” said United States Attorney Robert K. Hur. “This sentence ensures that he will not profit from his crimes and will be held accountable for his years of lies.”
According to the evidence presented at his seven-day trial, in 1998 Gaver formed GTI, an information technology company based in Frederick, Maryland. Between November 2008 and December 2016, Gaver submitted materially false financial documents to a federally insured bank, including fraudulent audit reports and contract status reports, in order to establish and to obtain successive increases in the line of credit from the lender for GTI. Based upon the false documentation submitted by Gaver, the lender ultimately extended approximately $49 million in financing to GTI. The evidence showed that Gaver diverted a large portion of these fraudulently obtained funds to his own personal use.
According to the evidence presented at trial, the bank initially approved an $18.5 million line of credit for GTI in August 2009, when it took over the line of credit from another bank that had previously extended a $16.5 million line of credit to GTI. This line of credit was subsequently increased eight separate times between March 2010 and March 2016, growing from $18.5 million to a total of $50 million. On an ongoing monthly, quarterly, and annual basis, and in connection with each request by Gaver for an increase in GTI’s credit line, the bank required GTI to submit specific documentation disclosing the company’s financial performance and condition. The required documentation included audited annual financial statements, quarterly balance sheets, monthly borrowing base certificates, and monthly accounts receivable aging reports. The monthly borrowing base certificates required Gaver to certify the amount of GTI’s outstanding accounts receivable, and were used by the bank to establish a maximum borrowing amount for GTI. Under the terms of GTI’s line of credit agreement with the lender, GTI was only allowed to borrow up to 75% to 80% of the total amount of GTI’s outstanding accounts receivable, and the funds loaned by the bank were only to be used by GTI for business purposes.
The evidence proved that between August 2009 and December 2016, Gaver also submitted Quarterly Contract Status Reports to the bank, which falsely represented that GTI had secured contracts with federal government agencies, such as the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the National Aeronautics and Space Administration (NASA), or that overstated the amount of GTI’s ongoing contracts with federal government agencies.
The evidence showed that some of the funds obtained from the lender were used by Gaver to cover regular business expenses and thereby keep GTI open, but that Gaver also diverted half of the post-2009 loan proceeds – approximately $15 million – to his own personal use. For example, Gaver used loan proceeds to pay $779,000 for the rental of private planes that he used for non-business purposes, as well as to pay for personal pleasure trips to the Bahamas, France, Germany, Mexico, Jamaica, and the Bahamas. Gaver also used the funds to purchase vacation homes, including a 4,000-square-foot condominium with a view of the Gulf of Mexico in Bonita Springs, Florida, which cost $2.275 million. Gaver also used loan proceeds to purchase a 2012 Maserati Gran Turismo; a 2011 Mercedes Benz SL Roadster; and a private membership at an exclusive golf club located in Naples, Florida that cost $285,000.
United States Attorney Robert Hur commended the FBI and the FHFA-OIG for their work on the investigation. Mr. Hur also thanked Assistant U.S. Attorneys Jefferson M. Gray and Jeffrey J. Izant, who prosecuted the case.
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Former Director of Operations of a Rockford Non-Profit Organization Charged with FraudRead the Press Release
ROCKFORD — LEILANI HILLIS, 60, of Rockford, the former director of operations of a Rockford non-profit organization, was charged today in federal court with one count of mail fraud and one count of tax fraud.
Hillis was an employee of the non-profit organization since 2001. During her employment, Hillis handled the organization’s payroll, human resource matters, accounting, and oversaw the annual audit. As of 2009, Hillis had signatory authority on the organization’s bank account and access to the organization’s PayPal account.
According to a criminal information, the organization issued employees a credit card in the employee’s name. From 2009 through April 2018, Hillis schemed to enrich herself by using her employee-issued credit card to make more than $600,000 in unauthorized purchases for her personal benefit. Hillis concealed her crime by using the organization’s accounting codes to make it appear the purchases were for the organization’s benefit, and she forged the initials of the organization’s president on the expense reports. Hillis issued and signed checks from the organization’s account to the bank, knowing the payment included money to pay for the unauthorized purchases. Hillis also did not report as income the money from the organization that she used to pay the organization’s credit card for her unauthorized personal purchases.
Each count of mail fraud carries a maximum potential penalty of up to 20 years in prison, and tax fraud carries a maximum potential penalty of up to three years in prison. Each charge also carries a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater, plus full restitution and a period of supervised release following imprisonment of up to five years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Hillis is scheduled to appear for arraignment before U.S. Magistrate Judge Iain D. Johnston on Dec. 19, 2018, at 9:30 a.m.
The public is reminded that an information contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Former CEO, CFO and Directors of Healthcare Services Company Indicted in Elaborate $300 Million Investment Fraud SchemeRead the Press Release
Defendants Allegedly Inflated Company’s Value and Revenue to Defraud Investors
NEWARK, N.J. – The former CEO, CFO and two directors of a publicly traded healthcare services company were indicted today for allegedly orchestrating a widespread scheme to defraud investors and others out of hundreds of millions of dollars in connection with a merger transaction designed to convert the company into a private entity, U.S. Attorney Craig Carpenito announced.
Parmjit Parmar, a/k/a “Paul Parmar,” 48; Sotirios Zaharis, a/k/a “Sam Zaharis,” 51; Ravi Chivukula, 44; and Pavandeep Bakhshi, 41, are charged in a three-count indictment with conspiracy to commit securities fraud, securities fraud, and wire fraud. Parmar, Zaharis, and Chivukula were first charged by complaint in May 2018. Bakhshi was charged with the same offenses in a separate criminal complaint in September 2018, which was unsealed earlier this week following his arrest at JFK Airport after he arrived from London. Zaharis and Chivukula remain fugitives.
According to documents filed in this case and statements made in court:
From May 2015 through September 2017, Bakhshi and conspirators Parmjit Parmar, a/k/a “Paul Parmar,” Sotirios Zaharis, a/k/a “Sam Zaharis,” and Ravi Chivukula orchestrated an elaborate scheme to defraud a private investment firm and others out of hundreds of millions of dollars in connection with the funding of a transaction to take private a healthcare services company (Company A) traded publicly on the London Stock Exchange’s Alternative Investment Market. To fund the transaction, the private investment firm put up $82 million and a consortium of financial institutions put up another $130 million. The scheme utilized fraudulent methods to grossly inflate the value of Company A and trick others into believing that Company A was worth substantially more than its actual value.
To present a positive picture of the company’s financial wealth, the conspirators allegedly sought to raise tens of millions of dollars in the public markets, purportedly to fund Company A’s acquisitions of various operating subsidiaries. In reality, a number of those entities either did not exist or had only a fraction of the operating income attributed to them. The conspirators allegedly funneled the proceeds of these secondary offerings through bank accounts they controlled and used the money for a variety of purposes that had nothing to do with acquiring the purported targets. The money from one of the offerings was instead used to make it appear as if the operating subsidiary had substantial customer revenue when, in fact, the funds were simply transfers of the money that had been raised in the secondary offering. The conspirators went to great lengths to make it appear that these funds were revenue, concocting phony customers and altering bank statements to make it appear as if the funds were coming from customers.
The conspirators allegedly:
• Created fictitious operating companies that Company A purportedly acquired in sham acquisitions.
• Falsified and fabricated bank records of subsidiary entities in order to generate a phony picture of Company A’s revenue streams.
• Generated fake income streams and phony customers of Company A and its subsidiaries.
• Made material misrepresentations and omissions to the private investment firm and others.The defendants’ alleged actions caused the private investment firm and others to value Company A at more than $300 million for purposes of financing the transaction to take the company private.
The alleged scheme was uncovered in September 2017, when the conspirators resigned from their positions with Company A or were terminated. On March 16, 2018, Company A and numerous of its affiliated entities filed for bankruptcy, attributing the company’s financial demise, in large part, to the fraud scheme.The conspiracy count with which the defendant is charged carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities fraud count carries a maximum potential penalty of twenty years in prison and a $5,000,000 fine.
The United States filed a criminal complaint against Parmar, Zaharis and Chivukula on May 16, 2018 for their roles in the scheme. Zaharis and Chivukula currently are fugitives. The United States also filed a separate civil complaint on the same date seeking forfeiture of four properties that Parmar owns or controls, including a house in Colt’s Neck and three apartments in New York City. Separately, the U.S. Securities and Exchange Commission filed a civil complaint on May 16th against Parmar, Zaharis and Chivukula.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation which led to today’s charges. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Regional Director Marc P. Berger and Associate Regional Director Lara S. Mehraban, for its assistance.
The government is represented by Paul A. Murphy, Chief of the U.S. Attorney’s Office’s Economic Crimes Unit, Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit, Trial Attorney Leslie Lehnert, Money Laundering and Asset Recovery Section, Department of Justice, and Assistant U.S. Attorney Sarah Devlin of the U.S. Attorney’s Office’s Asset Recovery Money Laundering Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Floridian Pleads Guilty in Complex Fraud Scheme Related to the Processing of Credit Card PaymentsRead the Press Release
PITTSBURGH, Pa - A resident of Boca Raton, Florida, pleaded guilty in federal court to a charge of conspiracy to commit bank, wire and mail fraud, United States Attorney Scott W. Brady announced today.
Gennady Nudelman, 42, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Nudelman was involved in a complex conspiracy related to the fraudulent processing of credit card payments. The credit card companies will not allow their products and services to be used to pay for certain precluded activities, including the on-line sales of pharmaceutical drugs and of products violating trademark infringement laws. The defendant participated in the conspiracy designed to conceal from the credit card companies the fact they used their products and services to pay for precluded activities and to subvert the internal controls the credit card companies had in place to detect and prevent this type of activity. The fraud involved establishing shell corporations and web sites associated with the shell companies that falsely claimed that they sold products other than pharmaceutical drugs or products that violated trademark infringement laws. The conspirators then applied for merchant accounts from the credit card companies in the names of the shell corporations and the fake web sites. Once the merchant accounts were established, they were used to process payments for pharmaceutical drugs or products that violated trademark infringement laws. Additionally, the conspirators arranged for the credit card statements sent to the consumers to have the names of the shell corporations and telephone numbers. The conspirators set up a telephone bank to receive calls from customers questioning billings on their credit card statements, and the conspirators explained to the customers the true nature of the transactions in hopes of avoiding charge-backs that could cause the credit card companies to question the legitimacy of the transactions.
Judge Cercone scheduled sentencing for April 29, 2019 at 11 a.m. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Food and Drug Administration – Office of Criminal Investigations, Homeland Security Investigations, Pennsylvania State Police and United States Postal Inspection Service conducted the investigation that led to the prosecution of Nudelman.
Felon in Possession of a Firearm and Ammunition Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelly D. Dick sentenced ADAM C. METEVIA, a 22 year-old resident of Baton Rouge, to 27 months in federal prison following his conviction of possessing a firearm and ammunition by a convicted felon. The Court further sentenced METEVIA to 3 years of supervised release following his term of imprisonment and also ordered that the firearm and ammunition possessed by METEVIA be forfeited.
On November 14, 2017, Baton Rouge Police Department responded to a McDonalds near the corner of Scenic Hwy. and Harding Blvd. in Baton Rouge, Louisiana. A complainant advised that METEVIA entered the McDonalds, walked behind the counter to the kitchen area, and raised up his shirt, exposing a handgun tucked into his waistband. When the BRPD officers arrived at the McDonalds, they observed a male, later identified as METEVIA, matching the description of the suspect in possession of a large revolver. Upon apprehension, officers retrieved the firearm and also discovered twenty-one rounds of .ammunition in his pockets. METEVIA was previously convicted in East Baton Rouge Parish of possession of a Schedule II controlled substance, a felony.
U.S. Attorney Fremin stated, “Firearms in the hands of convicted felons will not be tolerated in this jurisdiction. I want to thank my prosecutors, the ATF, and the Baton Rouge Police Department for bringing this defendant to justice.”
ATF Resident Agent-in-Charge Antonio L. Pittman stated, “The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with our Federal, State, and Local Law enforcement partners continue to serve our communities by focusing our efforts on removing armed, violent offenders from our streets. We work diligently to protect our citizens by presenting relevant investigative work to our Middle District of Louisiana U.S. Attorney’s Office for federal prosecution.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Brad Casey.
Felon in Possession of a Firearm Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelly D. Dick sentenced DEMARCUS FLEMING, a 38 year-old resident of Baton Rouge, to 115 months in federal prison following his conviction of possessing a firearm by a convicted felon. The Court further sentenced FLEMING to 3 years of supervised release following his term of imprisonment and ordered that the firearm be forfeited.
On July 5, 2017, East Baton Rouge Parish Sheriff’s Deputies responded to a “disturbance with shots fired,” at a residence in Baton Rouge, Louisiana. As they did so, the deputies, via their investigation, determined that FLEMING possessed the firearm which they located on the ground in front of the residence. FLEMING was previously convicted in East Baton Rouge Parish of possession of cocaine and attempted possession of a firearm, felony offenses. The Court stated in part for the reasoning, “The Court has an absolute obligation to protect the community and, based on your drug use and behavior in the past, it is not a stretch for the Court to find that you pose a serious risk to the public.”
U.S. Attorney Fremin stated, “Our office works hard to keep firearms out of the hands of convicted felons, and this is an example of what can be achieved when federal, state, and local agencies work together. I want to thank our prosecutors, the ATF, and the East Baton Rouge Sheriff’s Office for their efforts.”
ATF Resident Agent-in-Charge Antonio L. Pittman stated, “The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with our Federal, State, and Local Law enforcement partners continue to serve our communities by focusing our efforts on removing armed violent offenders from our streets. We work diligently to protect our citizens by presenting relevant investigative work to our Middle District of Louisiana U.S. Attorney’s Office for federal prosecution. The arrest and prosecution of Mr. Fleming is one example of the great work we are doing in our district.”
“This indictment is one example of the collaboration of local, state and federal agencies to get dangerous criminals and weapons off our streets. The EBR Sheriff's Office is committed to continuing to work with all our law enforcement counterparts to ensure the safety of our residents. I'm grateful to the U.S. Attorney's Office for their hard work and dedication in prosecuting these cases that our agents have worked so hard to develop,” stated EBR Sheriff Sid Gautreaux.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the East Baton Rouge Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Michael Jefferson.
Federal Indictment Charges Twenty-Four Members and Associates of a Drug Trafficking and Money Laundering Organization Operating in Little HavanaRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Juan J. Perez, Director of the Miami-Dade Police Department (MDPD); Jorge R. Colina, Chief of the City of Miami Police Department (MPD), and Gadyaces S. Serralta, U.S. Marshal for the Southern District of Florida, announced the unsealing of federal charges today against 24 members and associates of a drug trafficking and money laundering organization ("DTO”) operating in the Little Havana neighborhood of Miami-Dade County, Florida and elsewhere. The defendants are charged in a 59-count indictment for their conduct related to drug trafficking, violent crime, federal firearms offenses, and money laundering.
“As your new U.S. Attorney, life-long South Florida resident and concerned citizen, I remain committed to supporting the U.S. Attorney’s Office and its dedicated law enforcement partners as we continue to target the members and associates of drug trafficking and violent criminal enterprises that threaten the public’s safety and security,” stated U.S. Attorney Ariana Fajardo Orshan. “As evidenced by the handing down of federal charges against 24 defendants today, we stand ready to prosecute those individuals who terrorize our local communities, fuel the narcotics epidemic and endanger the lives of others with gun violence.”
ATF Special Agent in Charge Ari Shapira said, “This indictment demonstrates, most clearly, the ATF commitment to reducing violent crime in South Florida. We will never waver in our efforts to battle the drug-fueled firearms violence that threatens our communities. I am proud to lead our dedicated law enforcement professionals and applaud their collective collaboration with our partners at all levels of government. The people of South Florida deserve no less.”
“This success is the product of local, state, and federal law enforcement agencies collaborating with our partners at the U.S. Attorney’s Office, to rid our communities of illegal narcotics and the violence that so often comes with it,” said Miami-Dade Police Department Director Juan J. Perez. “All of those involved in this investigation worked relentlessly to ensure that everyone responsible would be brought to justice.”
“The U.S. Marshal Service is thankful to be a part of the law enforcement efforts that brought forth the dismantling of this criminal enterprise,” stated U.S. Marshal Gadyaces Serralta. “Together with our federal, state, and local partners we have made this community a safer place to live, work and play.”
The federal indictment and ”Motion to Seek Pre-Trial Detention” allege that from approximately December 7, 2013, through on or about October 30, 2018, in Miami-Dade County, Ulysses Cabrera, a/k/a “Uley,” a/k/a “Big Cuz,” 29, and Bernardo Quinonez, a/k/a “Macho,” 30, both of Miami, were the leaders and organizers of the continuing criminal enterprise, the DTO. Rafael Quinonez, a/k/a “Gigi,” a/k/a “Big Junkz,” 27, Henry Feliciano-Torres, a/k/a “Mafia,” 31, Daniel Quinonez, a/k/a “Julio,” 31 Marvin Melendez-Reyes, a/k/a “Homicide Marvin,” 22, Victor Smith, a/k/a “OGP,” 22, Hector Salgado, a/k/a “Teto,” 18, Issac Leal, a/k/a “Chico Black,” a/k/a “King Felony,” 28, Jose Luis Diaz, a/k/a “Lil Cuz,” 26, Peter Rodriguez, a/k/a “Hot Boy,” 25, Rogelio Ramos, 22, Peter Simo, a/k/a “Worm,” 20, Elizabeth Legon, a/k/a “Eli,” 29, Ricardo Perez-Castro, 62 Orlando Lorenzo, 52, Roberto Garcia, 24, Miguel Haber, 34, Pedro Rene Gonzalez, a/k/a “Pete,” 42, Eduardo Bobadilla-Orol, a/k/a “Chupa,” 62, Gilbert Cruz Baez, a/k/a “Bori,” 20, Alain Terry, a/k/a “Youngin,” Ronald Reyes-Melo, a/k/a “Cueyo,” 22, and Charlie Gonzalez, 28, are alleged members and associates of the criminal enterprise. Rogelio Ramos is an illegal alien from Honduras. All other defendants charged in the indictment are from Miami.
From as early as 2013, the DTO distributed cocaine, crack cocaine, and marijuana onto the streets of Little Havana, in Miami-Dade County, Florida and elsewhere. In November of 2017, a High Intensity Drug Trafficking Area (HIDTA) Task Force, headed by ATF, began a proactive investigation into the Little Havana based DTO. The indictment announced today charges members, former members and associates of the DTO with various drug trafficking, money laundering and violent crimes.
According to allegations in the court docket, Cabrera supplied the cocaine and acted as a manager of the DTO. B. Quinonez oversaw the operation and man-power used to transform the cocaine into crack cocaine and distribution into the streets of Little Havana and elsewhere. Cabrera and B. Quinonez were charged in the indictment with being the principal administrators, organizers, supervisors and leaders of the continuing criminal enterprise, the DTO, and that they earned substantial income and resources from the criminal operation (Count 1).
The court docket further alleges that co-defendants, including Diaz, P. Rodriguez and R. Quinonez, were mid-level management members of the DTO, who worked to bring the narcotics into the South Florida community for distribution. R. Quinonez oversaw the distribution of marijuana by the DTO. Residences in Little Havana and Brickell, within Miami-Dade County, were used to manufacture, consume and distribute the illegal narcotics. The DTO used the area of 10th Avenue and 4th Street, in Little Havana as their base of operation. Co-defendants including Feliciano-Torres, D. Quinonez and Smith oversaw the local drug trade, as street-level narcotics distributors including co-defendants Leal, Ramos, Simo, Baez, Haber, Legon and Terry introduced the drugs directly into the community. Cabrera, B. Quinonez, R. Quinonez, Feliciano-Torres, D. Quinonez, Melendez-Reyes, Smith, Leal, Diaz, Ramos, Simo, Baez and Terry were collectively charged in the indictment with participating in a conspiracy to possess with the intent to distribute the controlled substances (Count 2).
When rival drug dealers threatened the territory controlled by their criminal enterprise or when individuals questioned their authority, Cabrera and B. Quinonez allegedly directed armed members of the charged narcotics conspiracy to intimidate, maim, and in some instances kill others. As a result, innocent bystanders were shot and sustained serious physical injuries.
The indictment charges specific firearms offenses and violent criminal conduct, including:
Baez, a former member of the DTO turned rival, was charged with committing a drive-by shooting on October 30, 2017, in furtherance of a drug trafficking conspiracy.
Cabrera, Bernardo Quinonez, Rafael Quinonez, Feliciano-Torres, Daniel Quinonez, Melendez-Reyes, Smith, Leal, Ramos, Simo, Haber and Terry were charged federally for their involvement in a drive-by shooting which occurred on October 31, 2017, November 2 and November 6, 2017, in furtherance of a drug trafficking conspiracy.
Gonzalez, Bobadillo-Orol, Leal, Melendez-Reyes, Reyes-Melo, Gonzalez and Simo were charged with being convicted felons unlawfully in possession of firearms.
Cabrera, Bernardo Quinonez, Rafael Quinonez, Feliciano-Torres, Daniel Quinonez, Melendez-Reyes, Smith, Leal, Ramos, Simo, Haber and Terry were collectively charged with possessing a firearm in furtherance of drug trafficking on April 3, 2018.
Cabrera, Bernardo Quinonez, Rafael Quinonez, Feliciano-Torres, Daniel Quinonez, Melendez-Reyes, Smith, Leal, Ramos, Simo, and Haber were also charged with collectively possessing a firearm in furtherance of drug trafficking on June 11, 2018.
Smith and Salgado were charged with committing an armed robbery of a Miami hotel guest on July 10, 2018.
Baez and Terry were charged for their involvement in a drive-by shooting which occurred on July 27, 2018, in furtherance of a drug trafficking conspiracy.
Ramos was charged with being an illegal alien unlawfully in possession of a firearm on September 13, 2018.
In addition, Cabrera, Bernardo Quinonez, Rodriguez and Diaz were charged with laundering money, in that they allegedly conducted financial transactions affecting interstate and foreign commerce (including the purchase of property), with proceeds of the drug trafficking enterprise.
Law enforcement seized approximately 1.5 kilograms of cocaine, several grams of crack cocaine, more than 26 pounds of marijuana, 4 assault rifles, 10 pistols, 10 extended magazines, 10 semi-automatic firearms, a short barrel rifle, a revolver and hundreds of rounds of ammunition related to the criminal conduct charged in the indictment.
If convicted of the varied charges set forth in the indictment each defendant will face his/her respective sentencing guidelines. The maximum penalty for: participating in a continuing criminal enterprise is life in prison; participating in a conspiracy to possess controlled substances with the intent to distribute is life in prison; maintaining an establishment for distribution of controlled substances is 20 years in prison; possessing controlled substances with the intent to distribute is 20 years in prison; participating in a conspiracy to possess a firearm in furtherance of a drug trafficking crime is life in prison; committing a drive by shooting is 25 years in prison; brandishing and discharging a firearm in furtherance of a drug trafficking crime is life in prison; being a felon in possession of a firearm and/or ammunition is 10 years in prison; participating in a conspiracy to commit money laundering is 20 years in prison; and using a two-way radio to facilitate drug trafficking is 20 years in prison.
This case stems from Project Safe Neighborhoods (PSN), an evidence-based program proven to be effective at reducing violent crime. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This investigation and prosecution was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force. The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies who, cooperatively, target the region’s drug-trafficking and money laundering organizations. The South Florida HIDTA is funded by the Office of National Drug Control Policy, which sponsors a variety of initiatives focused on the nation’s illicit drug trafficking threats.
This investigation, Operation Havana Ghost, is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between 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.
U.S. Attorney Fajardo Orshan commended the ATF, MDPD, including the MDPD Street Terror Offender Program (STOP), MPD and U.S. Marshals Service for their dedicated efforts to combat violent crime and drug trafficking in South Florida. This case is being prosecuted by Assistant U.S. Attorney Breezye Telfair. Assistant U.S. Attorney Eloisa D. Fernandez is handling the forfeiture aspects of this case.
An indictment is a charging instrument containing allegations. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Attached: Indictment and United States’ Omnibus Motion to Seek Pre-Trial Detention
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Elkhart Man Indicted for Possession and Transportation of Child PornographyRead the Press Release
SOUTH BEND –Steven J. Perry, 54, of Elkhart, Indiana, has been charged by indictment with transportation and possession of child pornography, announced United States Attorney Thomas L. Kirsch.
According to documents in the case, on September 17, 2018, Mr. Perry, who has a prior conviction for possession of child pornography, uploaded images of child pornography to an online service. The service reported this to the National Center for Missing and Exploited Children, who then relayed this “cybertip” to the Indiana Crimes Against Children task force. The cybertip was then referred to an FBI cybercrimes task force agent in South Bend. A search warrant was conducted on December 5, 2018 at Perry’s Elkhart residence. Mr. Perry admitted that he had uploaded images to the online service and was taken into custody.
The United States Attorney’s Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated by the FBI cybercrime unit in South Bend with assistance from the Secret Service and the St. Joseph County Sheriff’s department, and is being prosecuted by Assistant United States Attorney John M. Maciejczyk.
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Eighteen Charged in Federal Drug IndictmentRead the Press Release
Harrisonburg, VIRGINIA – Federal, state, and local officials announced today the arrests of 19 individuals on federal drug-trafficking, firearms, and other charges resulting from a months-long, multi-agency investigation.
"The modern opioid epidemic is one of the most vexing problems faced by law enforcement and public-health officials,” U.S. Attorney Cullen stated today. “As U.S. Attorney, I am committed to prosecuting individuals and organizations who distribute Fentanyl, heroin, and methamphetamine and working with our federal, state, and local law-enforcement partners to stanch the flow of these deadly drugs into Western Virginia. But while I firmly believe that vigorous enforcement is critical to addressing this epidemic, we also support meaningful treatment initiatives for those suffering from drug addictions and targeted outreach to prevent others from having their lives destroyed by these deadly substances.”
“ATF is committed to ridding American streets of crime, not just in large cities but also in the rural areas that are often hit hardest by the scourge of illegal firearms and drugs. This investigation is a great example of how we work with our law enforcement partners to dismantle criminal organizations and protect the communities they infest. It should serve as a reminder to others that no matter where you are, if you commit a federal crime, we will do everything we can to put you behind bars,” said Special Agent in Charge Thomas L. Chittum III, ATF Washington Field Division.
The indictment, returned under seal by a federal grand jury December 4, 2018 and unsealed yesterday, charges 18 defendants with conspiring to distribute and possess with the intent to distribute heroin and methamphetamine. The indictment alleges that certain members of the conspiracy trafficked more than 1,000 grams of heroin and more than 500 grams of methamphetamine from approximately January 2016 and ending in approximately December 2018.
One defendant, Brandon Wayne Eppard, is charged with maintaining a property for the purpose of unlawfully distributing a controlled substance. That property was located at 160 Shenandoah Street in Mount Jackson, Virginia.
An additional defendant, Merle Stephens, was charged via a federal criminal complaint with one count of possession with the intent to distribute methamphetamine and one count of use of a firearm in furtherance of a drug trafficking crime. Stephens was arrested at a Motel 6 in Mount Jackson, Virginia on December 7, 2018.
The indictment also charges four individuals, Michael Mullins, Jeffrey Craig Mays, William Ray Shoemaker, and Christopher Thomas Trimble, with firearms possession charges in addition to their drug charges.
Charged in the indictment are as follows:
- Anthony Benjamin Testerman, 25, of Mount Jackson, Va. – one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine, and one count of possession with the intent to distribute fentanyl.
- William Ray Shoemaker, 45, of Edinburg, Va. – one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine, three counts of distributing and possession with the intent to distribute, methamphetamine, and one count of felon in possession of a firearm.
- Jeffrey Craig Mays, 32, of Mount Jackson, Va. – one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine and one count of using a firearm in furtherance of a drug trafficking offense.
- Katie L. Harlow, 37, Mount Jackson, Va. – one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine, and three counts of distribution of methamphetamine.
- Javon Eugene Cook, 26, of Mount Jackson, Va. - one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine, one count of felon in possession of a firearm, one count of possession of a firearm in furtherance of a drug trafficking offense, one count of distribution of methamphetamine, and one count of possession with the intent to distribute methamphetamine.
- Brooke McIntosh, 27, Timberville, Va. - one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine
- Jonathan Lewis Hodges, 30, of New Market, Va. – one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine, and one count of distributing and possessing with the intent to distribute, methamphetamine.
- Kenneth J. Webb, 32, of Woodstock, Va. - one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine, and three counts of distributing and possessing with the intent to distribute, methamphetamine.
- Amanda Jean Mullins, 30, of Edinburg, Va. - one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine, and two counts of distributing and possessing with the intent to distribute, methamphetamine.
- Michael Mullins, 32, - one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine, one count of felon in possession of a firearm, one count of distributing and possessing with the intent to distribute methamphetamine, and one count of distributing and possessing with the intent to distribute fentanyl.
- Dietrich M. Day, 28, of Dumfries, Va. - one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine, and one count of distributing and possessing with the intent to distribute fentanyl.
- Christian Michael Burhop, 27, of Basye, Va. - one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine, three counts of distribution of heroin, one count of distribution of methamphetamine, and one count of distribution of cocaine, heroin and fentanyl.
- Christopher Thomas Trimble, 27, of Fishersville, Va. - one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine, and one count of possession of a firearm by a prohibited person.
- Brandon Wayne Eppard, 28, of Mount Jackson, Va. - one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine, and one count of maintaining a premises for the purpose of unlawfully distributing, possessing, and using controlled substances.
- Tiffany Bowman Lopez, 30, Quicksburg, Va. - one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine, two counts of distributing and possessing with the intent to distribute heroin and four counts of distributing and possessing with the intent to distribute heroin and fentanyl.
- Erica Lam, one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine.
- Justin Tyler Mumaw, 26, of Edinburg, Va., - one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine, and two counts of distributing and possessing with the intent to distribute methamphetamine.
- Dana Marie Silvious, 29, Front Royal, Va. - one count of conspiracy to distribute and possess with the intent to distribute heroin and methamphetamine, two counts of distributing and possessing with the intent to distribute fentanyl, and one count of distributing and possessing with the intent to distribute heroin.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Shenandoah County Sheriff’s Office, the RUSH Drug Task Force, the Northwest Virginia Regional Drug and Gang Task Force, the Mount Jackson Police Department, the Woodstock Police Department, the Front Royal Police Department, the Timberville Police Department, and the Shenandoah County Commonwealth’s Attorney’s Office. Assistant United States Attorney Grayson A. Hoffman will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Dunkirk Man Sentenced for Selling Illegal Controlled SubstancesRead 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 Anthony Dloniak, 40, of Dunkirk, NY, who was convicted of possession with intent to distribute U-47700, was sentenced to serve 78 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that beginning in May of 2017, law enforcement officers began recovering packages addressed to the defendant from China and the Netherlands, all of which contained either U-47700 or MDMA, both of which are Schedule I controlled substances. On September 7, 2017, officers executed a search warrant at the Dloniak’s residence and recovered controlled substances and items used in the distribution of controlled substances, including: a quantity of U-47700; scales; a vacuum sealing system; packaging materials; a ledger; a book entitled “How to Manufacture Methamphetamine;” and, $12,650 in U.S. currency.
The sentencing is the culmination of an investigation on the part of Immigrations and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office, under the direction of Special Agent-in-Charge Jeffrey Ebersole.
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