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Tuesday 30 October 2018
Robert Watkins Sentenced and Ordered to pay $1,291,030 in RestitutionRead the Press Release
HAMMOND – Robert Watkins, 32 years old, of Porter, Indiana, was sentenced by U.S. District Court Judge Jon E. DeGuilio after pleading guilty, announced United States Attorney Thomas L. Kirsch II.
Watkins received a sentence of 15 months imprisonment and was ordered to pay $1,291,030 in restitution to Arcelor Mittal.
According to documents in the case, Watkins pled guilty to three counts of Interstate Transportation of Stolen Property because, between September 2013 and March 2014, Watkins and others stole a metal alloy called Ferro Columbium from Arcelor Mittal’s property and transported it across state lines to sell for profit.
This case was investigated by the FBI GRIT Task Force and prosecuted by Assistant United States Attorney Jennifer Chang.
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Reported Gun Crimes Continue to DeclineRead the Press Release
Memphis, TN – Reported gun crimes were down 17.3 percent during the first three quarters of 2018 (January – September) compared to the same time period last year in the city of Memphis and unincorporated parts of Shelby County, according to figures from the Project Safe Neighborhoods G.U.N. (Government United for Non-Violence) Unit. The latest figures build on a 15.3 percent decline during the first half of the year (January – June).
From January through September of this year, there were 3,659 reported crimes with guns compared to 4,422 during the same period in 2017.
The latest gun crime figures are consistent with preliminary violent crime figures from the Tennessee Bureau of Investigation for the first three quarters of 2018 released by the Memphis Shelby Crime Commission and the University of Memphis Public Safety Institute last week. Those figures showed murders in Memphis down 17.6 percent compared to last year (down 14.5 percent countywide) and reported robberies in Memphis down 12.4 percent (down 11.3 percent countywide).
Reducing gun crime is a major focus of the local Operation: Safe Community plan, the development of which was spearheaded by the Crime Commission.
Bill Gibbons, president of the Crime Commission, noted that a number of objectives under the plan currently being implemented could be getting the word out to the street level about the consequences of engaging in gun crime and deterring acts of violence with guns. Specifically, he noted vigorous enforcement of tough federal gun laws, enactment of stiffer state sentences to curb illegal possession of firearms, ramped up data-driven deployment of law enforcement resources, and the FED UP Gun Crime Max Time media campaign, which has the goal of changing behavior."Word may very well be getting out that engaging in gun violence is just not worth the price. We may be changing the behavior of some," said Gibbons.
U.S Attorney Mike Dunavant stated, "Last year, the U.S. Attorney's Officeannounced the expansion and reinvigoration of the Project Safe Neighborhoods(PSN) initiative, which is a highly successful and proven violent crime reductionstrategy. Through our partnerships with federal and local law enforcement and theShelby County DA's Office to target firearms offenses and prevent additionalcrimes by public awareness of real consequences, we have seen a steady reductionin the number of reported gun crimes.
"These sustained decreases in reported gun crimes and major violent crime categories are encouraging, and shows that our return to proven enforcement policies under PSN is working. We have dramatically increased the number of firearms prosecutions over the last year, and the welcome outcome has been improved public safety. Putting the right people in prison incapacitates the most violent offenders, upholds the rule of law, deters criminal conduct with a strong message of significant consequences, and makes us all safe," said Dunavant.
The chart below reflects reported gun crimes for the first three quarters of 2016, 2017, and 2018.1 Reported gun crime incidents in city of Memphis and unincorporated parts of Shelby County. Source: Project Safe Neighborhoods G.U.N. Unit
2 A 17.3 percent decrease compared to 2017 and a 6.6 percent decrease compared to 2016.
About the Memphis Shelby Crime Commission (www.memphiscrime.org): The Memphis Shelby Crime Commission is an independent, non-profit 501(c) (3) organization that "quarterbacks" the work of the Operation: Safe Community (OSC) plan and its partners. It is funded through the generous contributions of many private sector donors. Ben Adams, CEO of Baker Donelson law firm, serves as chair of the board, and Bill Gibbons serves as president of the Commission.
About Operation: Safe Community (www.operationsafecommunity.org): Launched in 2007, Operation: Safe Community (OSC), spearheaded by the Memphis Shelby Crime Commission, is a community-based crime reduction initiative. Operation: Safe Community is chaired by Shelby County District Attorney General Amy Weirich.
Press Release by U.S. Attorney Relating to November 2018 ElectionsRead the Press Release
United States Attorney Joe Kelly announced today that Assistant United States Attorney (AUSA) Laurie Kelly, no relation, will lead the efforts of his office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election. AUSA Kelly has been appointed to serve as the District Election Officer (DEO) for the District of Nebraska, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with the United States Department of Justice’s headquarters in Washington, D.C.
United States Attorney Kelly said, “Every citizen must be able to vote without interference or discrimination and to have that vote be counted. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Kelly stated that AUSA/DEO Laurie Kelly will be on duty in this District while the polls are open. Polling sites are open from 8 A.M. until 8 P.M. in the Central Time Zone, and 7 A.M. until 7 P.M. in the Mountain Time Zone. AUSA Kelly can be reached by the public at the following telephone number: (402) 661-3700.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (402) 493-8688.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, D.C. by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Nebraska Secretary of State John Gale reminds voters that, should the need arise, the state’s Election Integrity Unit is on standby for Election Day concerns or complaints. Anyone may call his office to express concerns or file a formal complaint if necessary. Nebraskans who wish to contact the Election Integrity Unit may do so by calling (402) 471-2555, or toll-free at (888) 727-0007. If a voter is unsure about the location of their polling site, they should call their county election office or go online to https://www.votercheck.necvr.ne.gov.
United States Attorney Joe Kelly said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Pittsfield Man Sentenced to Three Years on Firearms ChargesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Steven P. Springer II, 26, of Pittsfield, Maine, was sentenced today by Chief Judge Nancy Torresen to 36 months in prison followed by three years of supervised release for providing false information during the purchase of firearms. Springer pleaded guilty on May 29, 2018.
According to court records, on February 22, 2015, Springer purchased a Kel-Tec PF9 semi-automatic pistol from a federally licensed firearms dealer. In connection with the purchase, Springer completed a Firearms Transaction Record form in which he falsely reported that he was the actual purchaser of the firearm. On February 24, 2015, Springer purchased two Kel-Tec P11 pistols from another federally licensed dealer, again falsely reporting on the form that he was the actual purchaser of the firearms. On both occasions, Springer was buying the firearms for another individual who was prohibited from purchasing them.
The case was investigated by the Massachusetts State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. 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. 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.
Ossipee Man Pleads Guilty to Providing False Information in an Effort to Obtain Fishery Disaster Relief FundsRead the Press Release
CONCORD – Dave Bardzik, 56, of Ossipee, pleaded guilty in federal court to making false statement in violation of the Magnuson-Stevens Fishery Conservation and Management Act, United States Attorney Scott W. Murray announced today.
In late October 2012, Hurricane Sandy devastated the Atlantic coast of the United States. In addition to causing widespread property damage, the storm had substantial impacts on the New England fishing industry. Pursuant to the Magnuson-Stevens Act, the United States Commerce Secretary declared a fishery disaster and Congress approved fishery disaster relief funds. Operators of both commercial and “for hire” vessels in New Hampshire were provided information on how to apply for a share of those funds. Required criteria included that “for hire” vessels, like Bardzik’s, must have taken at least 15 trips in three of the previous four years in which at least one New England groundfish species was harvested.
According to court documents and statements made in court, Bardzik submitted several false and/or altered records to the New Hampshire Fish and Game Department in June 2015 in an attempt to qualify for the allotted funds. Investigators immediately noted discrepancies between the June 2015 submission and the previous, contemporaneous records Bardzik had completed in 2013. When confronted by investigators, Bardzik admitted that he created the false and/or altered records because he would otherwise not have qualified for funds.
Bardzik will be sentenced on February 5, 2019
“When the federal government provides funds for disaster relief, that is not an invitation to commit fraud,” said U.S. Attorney Murray. “Those who provide false information in order to obtain disaster relief money are committing a crime. We work closely with our law enforcement partners to ensure that benefits only go to those who are entitled to receive them.”
This matter was investigated by the National Oceanic and Atmospheric Administration’s Office of Law Enforcement with assistance from the New Hampshire Fish and Game Department. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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November 2018 General Election Day ProgramRead the Press Release
United States Attorney Mark A. Klaassen announced today that Assistant United States Attorney (AUSA) Timothy W. Gist will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election. AUSA Gist has been appointed to serve as the District Election Officer (DEO) for the District of Wyoming. In that capacity, he is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department in Washington. D.C.
"The right to vote is a cornerstone of American democracy, and every citizen who chooses to do so must be able to exercise that right without interference or discrimination," said United States Attorney Klaassen. "The Department of Justice will act promptly and aggressively to protect the integrity of the election process."
The Department of Justice is responsible for deterring election fraud and discrimination at the polls, and addressing these violations wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
AUSA/DEO Gist will be on duty while the polls are open to respond to complaints of election fraud or voting rights abuses, and to ensure that such complaints are directed to the appropriate authorities,. He can be reached by the public at the following telephone numbers: 307-332-8195 or 307-772-2124.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The FBI field office can be reached by the public at 303-630-6916 or 307-632-6224.
Complaints about possible violations of the federal voting rights laws may also be made directly to the Voting Section of the Civil Rights Division of the Department of Justice in Washington, D.C., by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected], or by online complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
"Ensuring free and fair elections depends in large part on the cooperation of fellow citizens," said United States Attorney Klaassen. "It is imperative that those who have any specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division so that we can take appropriate action."
November 2018 ElectionsRead the Press Release
Tampa, FL - United States Maria Chapa Lopez announced today that Assistant United States Attorney (AUSA) Robert Mosakowski will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election. AUSA Mosakowski has been appointed to serve as the District Election Officer (DEO) for the Middle District of Florida, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Chapa Lopez said, “Every citizen should be free to vote without interference or discrimination and to have their vote count, without the fear that it will be stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the electoral process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Chapa Lopez stated that AUSA/DEO Mosakowski will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (813) 274-6129.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. Local FBI field offices can be reached by the public at (813) 253-1000 (Tampa Division) or (904) 248-7000 (Jacksonville Division).
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Nashua Man Sentenced to 5 Years in Prison for Fentanyl TraffickingRead the Press Release
CONCORD, N.H. – Arthur Voutselas, 27, previously of Nashua, was sentenced to 60 months in federal prison for fentanyl trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on two separate occasions in January of 2018, Voutselas sold quantities of cocaine to a cooperating individual working with law enforcement. In February of 2018, Voutslas was arrested and found to be in possession of fentanyl and cash. A state court judge later granted a search warrant for Voutselas’ Nashua residence, and the search yielded approximately 75 grams of fentanyl, over $10,000 in U.S. currency, and other indicia of narcotics trafficking, including a scale, ledgers and bagging materials. Voutselas previously pleaded guilty to possession of fentanyl with intent to distribute in July of 2018.
Voutselas forfeited $12,955 to the United States, representing proceeds of his narcotics trafficking. Following prison, he will be on supervised release for a period of four years.
“Stopping fentanyl trafficking is a top priority of the U.S. Attorney’s Office” said U.S. Attorney Murray. “In order to protect the lives and safety of our citizens, we work closely with our law enforcement partners to investigate and prosecute those who are responsible for selling this deadly drug. Drug dealers should expect to face long prison terms for distributing fentanyl and other opioids.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Voutselas accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic.”
This matter was investigated by the Drug Enforcement Administration and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Charles L Rombeau.
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Muldrow Man Sentenced to 70 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Gregory Martin Williams, age 57, of Muldrow, Oklahoma, was sentenced to 70 months imprisonment and 3 years supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), and Title 18, United States Code, Section 2. The charge arose from an investigation by the District 27 District Attorney’s Drug Task Force and the Drug Enforcement Administration.
The Indictment alleged that on or about August 30, 2016, within the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “Rural Oklahoma is no stranger to the devastating impact that Methamphetamine has on people, families and communities. The dealers of this deadly poison must be held accountable. Thanks to the District 27 Drug and Violent Crime Task Force and the DEA, prosecutors in this office successfully prosecuted Williams.”
District Attorney Jack Thorp added, “Cooperation between federal, state, and local agencies continue to provide excellent results in the administration of justice. I am thankful for the strong working relationships that we have with our federal partners as we work together to make Eastern Oklahoma safer. This investigation and prosecution is a great example of what we can accomplish when we work together.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Christopher Wilson represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Moss Point Man Sentenced to Federal Prison for Illegally Possessing Firearm After Bringing Stolen Firearm to a Police StationRead the Press Release
Gulfport, Miss. – Kevin LaMarcus Mitchell, 20, of Moss Point, was sentenced today by U.S. District Judge Louis Guirola, Jr., to 21 months in prison, followed by 3 years of post-release supervision, after having pled guilty to illegally possessing a firearm as an unlawful user of controlled substances, announced U.S. Attorney Mike Hurst and Special Agent in Charge of Alcohol, Tobacco, Firearms and Explosives, Dana Nichols. Mitchell was also ordered to pay a $5,500 fine.
On April 6, 2018, Mitchell went to the Pascagoula Police Department with his twin brother Tevin Mitchell and Joseph Smith to retrieve firearms seized by the police on March 31, 2018. During that visit, Pascagoula Police officers and agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives arrested Tevin Mitchell and Smith for being unlawful users of controlled substances with guns from the prior incident. While doing an inventory search of Smith’s car, police found a gun stolen from St. Tammany Parish, Louisiana, under Kevin Mitchell’s seat. Mitchell admitted in an interview that he smoked marijuana regularly. Mitchell admitted to a friend in a recorded call that he brought the gun to the police station.
Pascagoula Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case was prosecuted by Assistant United States Attorney Annette Williams.
Montgomery Nurse Practitioner Convicted of Unlawfully Distributing Controlled Substances, Health Care Fraud, and ConspiracyRead the Press Release
Montgomery, Alabama – On Monday, October 29, 2018, a federal jury convicted nurse practitioner Lilian Ifeoma Akwuba, 39, of Montgomery, Alabama, on 17 counts of unlawfully distributing controlled substances, 4 counts of health care fraud, 1 count of conspiring to distribute controlled substances, and 1 count of conspiring to commit health care fraud, announced United States Attorney Louis V. Franklin, Sr.
The trial evidence showed that, from 2013 through 2016, Akwuba worked at Family Practice, a Montgomery medical practice located at 4143 Atlanta Highway. Her supervisor there was the practice’s owner, Dr. Gilberto Sanchez. Working under Sanchez, Akwuba issued and caused to be issued unnecessary and illegitimate prescriptions for a variety of controlled substances, including fentanyl, hydrocodone (commonly known as “Norco”), oxycodone (commonly known as “Percocet”), alprazolam (commonly known as “Xanax”), and methadone. Akwuba and Sanchez also required these patients to return approximately every month to obtain their prescriptions. These unnecessary office visits and unlawful prescriptions were ultimately billed to the insurance companies, which paid the claims.
In 2016, Akwuba left Family Practice and opened her own practice, Mercy Family Health Care, located at 128 Mytilene Park Drive in east Montgomery. Many of Family Practice’s former patients followed her there. After they did so, Akwuba continued to prescribe the patients the drugs the patients had received at Family Practice. In several instances, she increased the patients’ dosages or switched the patients to more potent narcotics than Sanchez had prescribed. Because Akwuba was a nurse practitioner and not a physician, she was not able to issue prescription refills on Schedule II controlled substances without a physician’s approval. Akwuba skirted this rule by, in many instances, forging physicians’ signatures on prescriptions for controlled substances. Additionally, Akwuba instructed her staff members to falsify medical records, so as to justify billing for office visits at increased rates. For example, trial evidence showed that Akwuba falsely reported performing 10 rectal exams on the same patient during the course of a single year. She also erroneously claimed to have performed a colonoscopy in her family practice office.
Following these convictions, Akwuba is facing up to 20 years in prison, substantial fines, and up to 3 years of supervised release.
“We will never be able to fully appreciate the harm that Ms. Akwuba caused to the patients who put their trust in her,” stated United States Attorney Franklin. “Patients hoped that Ms. Akwuba would appropriately treat their illnesses. Instead, she inflicted upon them a new disease—addiction. I hope that this verdict will send a strong message to the medical community. Society will no longer tolerate health care providers who are willing to betray their patients’ trust to make an easy buck.”
“The arrests and subsequent indictments of the individuals in this ongoing case are part of DEA's continuing effort to target the distribution of dangerous drugs at all levels,” said DEA Assistant Special Agent-in-Charge Bret Hamilton. “Illicit drug abuse and related criminal activity takes a tremendous toll communities throughout Alabama. We will continue to work closely with our law enforcement partners in order to enhance the quality of life for the citizens of this state by pursuing ALL criminals involved in the illicit drug trade, even if they're committing their crimes in a doctor's office.”
“Health care fraud is the ultimate betrayal of the trust that patients place with their providers. In this case, Akwuba, a nurse practitioner, took advantage of people suffering from addiction to opioids, to line her own pockets,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “We will continue to work with our law enforcement partners to protect patients and the health care programs intended to serve them.”
“Akwuba violated her professional and ethical oath by knowingly participating in this pill mill operation,” said Thomas J. Holloman, Special Agent in Charge, IRS-Criminal Investigation. “IRS-CI will continue working with our law enforcement partners in the fight to significantly impact the opioid epidemic.”
The case was investigated Drug Enforcement Agency, Health and Human Services-Office of the Inspector General, and Internal Revenue Service-Criminal Investigation. The Alabama Law Enforcement Agency, the Opelika, Alabama Police Department, the Montgomery, Alabama Police Department, and the Alabama Board of Medical Examiners all assisted in the investigation. Assistant United States Attorneys Jonathan S. Ross, Megan A. Kirkpatrick, and Rand Neeley are prosecuting the case.
Milwaukee Man Convicted of Conspiring to Provide Material Support to ISISRead the Press Release
Assistant Attorney General for National Security John C. Demers, United States Attorney Matthew D. Krueger for the Eastern District of Wisconsin and Special Agent-in-Charge R. Justin Tolomeo of the FBI’s Milwaukee Division announced that on October 25, 2018, Jason Michael Ludke (age: 37), of Milwaukee, pled guilty to conspiring to provide material support or resources to a foreign terrorist organization – i.e., the Islamic State, also known as the Islamic State of Iraq and the Levant (ISIL), the Islamic State of Iraq and al’Sham (ISIS), the Islamic State of Iraq and Syria (ISIS), ad-Dawla al’Islamiyya fi al-‘Iraq wa-sh-Sham, Daesh, and Dawla al Islamiya – in violation of Title 18, United States Code, Section 2339B(a)(1).
Ludke and a co-conspirator agreed that they would travel through Mexico to Syria and Iraq in order to join ISIS. Ludke arranged to do so with a man whom he believed was a member of ISIS. Ludke also recorded a video of himself pledging his allegiance to the leader of ISIS, Abu Bakr al-Baghdadi, and stating that he was ready to join ISIS. On October 5, 2016, Ludke and his coconspirator were traveling to the Texas/Mexico border in order to accomplish their plan to join ISIS, when law enforcement located and arrested them.
Ludke has prior convictions for child sexual assault and for making death threats against a federal judge. Ludke was on probation at the time he was arrested and had cut the tracking device from his ankle before leaving Wisconsin.
United States Attorney Krueger said this conviction demonstrates the United States’ resolute commitment to protecting our country and combatting foreign terrorism. Individuals like Ludke who seek to provide material support to ISIS will be held accountable. Krueger commended the excellent work of the FBI and the Joint Terrorism Task Force in securing this conviction.
“The FBI’s number one priority is protecting Americans from terrorism,” said Special Agent in Charge (SAC) Justin Tolomeo. “I commend our Joint Terrorism Task Force (JTTF), which includes our local, state and federal partners, for their investigative efforts in identifying and arresting Jason Ludke that prevented him from joining the ISIS terror group.”
Ludke faces a maximum term of imprisonment of twenty years, a maximum term of supervised release of five years, and a maximum fine of $250,000.
The case was investigated by the Federal Bureau of Investigation and the Joint Terrorism Task Force and is being prosecuted by Assistant United States Attorneys Paul Kanter and Benjamin Taibleson and Trial Attorney Jolie F. Zimmerman of the Department’s Counterterrorism Section.
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Mexican Man Sentenced to Prison for Illegally Reentering the United StatesRead the Press Release
A Mexican man who illegally returned to the United States after being deported was sentenced today to almost three months in federal prison.
Sergio Aguilar-Velasco, age 34, a citizen of Mexico illegally present in the United States and residing in Riceville, Iowa, received the prison term after a September 4, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Aguilar-Velasco admitted he had previously been deported from the United States in August 2006 and illegally reentered the United States without the permission of the United States government.
Aguilar-Velasco was deported in August 2006 following his misdemeanor conviction in the Northern District of Iowa on July 6, 2006, for illegal entry into the United States following his arrest during an immigration enforcement action at a meatpacking plant in Clarion, Iowa. Aguilar-Velasco was also deported to Mexico two times in one week in April 2004 and two times on the same day in November 2006. Aguilar-Velasco was found by immigration agents at the Mitchell County, Iowa, jail in July 2018 after Aguilar-Velasco was arrested for traffic violations. While Aguilar-Velasco initially denied ever being encountered by immigration officials, an analysis of his fingerprints confirmed that he had been deported in 2006 and removed from the United States four other times.
Aguilar-Velasco was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Aguilar-Velasco was sentenced to 84 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Aguilar-Velasco is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2043-CJW.
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Marion County man admits to drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – James Copen, of Fairmont, West Virginia, has admitted to methamphetamine distribution charges, United States Attorney Bill Powell announced.
Copen, age 42, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” and three counts of “Distribution of Methamphetamine in Proximity of a Protected Location.” Cope admitted to distributing methamphetamine in Marion County in October of 2017, March of 2018, and April of 2018.
The United States is also seeking forfeiture of $37,829 as proceeds derived directly or indirectly from the alleged crime.
Copen faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Three Rivers Drug & Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
MS-13 Member Sentenced to Ten Years in Prison for Orchestrating, from Inside A California Prison, the Trafficking of Drugs to New JerseyRead the Press Release
NEWARK, N.J. – A member of MS-13 was sentenced to ten years in prison for orchestrating, from inside a California state prison, the trafficking of methamphetamine, heroin, and cocaine to New Jersey, U.S. Attorney Craig Carpenito announced.
Luis Calderon, 32, a/k/a “Lagrima,” of Los Angeles, previously pleaded guilty before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court to an indictment charging him with conspiracy to distribute, and to possess with intent to distribute, methamphetamine, heroin, and cocaine. Sentence was imposed today by U.S. District Judge Jose L. Linares.
According to the documents filed in this case and statements made in court:
Between August 2015 and November 2015, Calderon was incarcerated at the Calipatria State Prison in California. However, Calderon had access to multiple contraband cellular telephones, which he used to communicate with conspirators outside the prison.
Law enforcement officers lawfully recorded numerous telephone conversations between Calderon and an MS-13 member based in New Jersey, identified in the indictment as “Individual-1.” Among other topics, Calderon and Individual-1 discussed plans to distribute crystal methamphetamine, heroin, and cocaine in the New Jersey area. Calderon and Individual-1 ultimately settled on that plan that involved Calderon and others outside the prison sending a package containing controlled substances to a business center in Edison, New Jersey.
Shortly before the package arrived, Calderon informed Individual-1 by telephone that he was sending Individual-1 a package containing four ounces each of heroin and cocaine. Calderon stated that the package would also likely contain two ounces or more of crystal methamphetamine. Calderon told Individual-1 that the total cost for the heroin, cocaine, and crystal methamphetamine was $9,000, and stated that Individual-1 could keep the proceeds made from selling the drugs once Individual-1 paid Calderon for the shipment. Calderon subsequently gave Individual-1 the names that would appear on the package and the tracking number.
On Nov. 4, 2015, federal agents lawfully intercepted and searched the package. The search revealed approximately 95.5 grams of heroin, 54.7 grams of cocaine, and 52.4 grams of methamphetamine hidden inside a box of Little Debbie Swiss Rolls.
In addition to the prison term, Judge Linares sentenced Calderon to 5 years of supervised release.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security (DHS), Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s sentencing. He also thanked Immigration and Customs Enforcement (ICE) Enforcement Removal Operations (ERO), the Calipatria State Prison, the Plainfield Police Department, the Union County Prosecutor’s Office, and the U.S. Attorney’s Office for the Central District of California for their assistance.
The government is represented by Assistant U.S. Attorneys Jamari Buxton of the U.S. Attorney’s Office Criminal Division and James Donnelly, Chief of the U.S. Attorney’s Office Violent Crimes Unit.
Defense counsel: Stacy Ann Biancamano Esq., Chatham, New Jersey
Luxury Yacht Captain Pleads Guilty in Death of Boater off Rhode Island CoastRead the Press Release
PROVIDENCE, RI – The licensed captain who was at the helm of a 60-foot luxury yacht when it collided with a 23-foot powerboat in waters off the coast of Westerly, R.I., on September 22, 2015, that resulted in the death of the operator of the powerboat pleaded guilty in federal court in Providence today to a charge seaman’s manslaughter.
Cooper “Chick” Bacon, 79, of Cape May, N.J., was piloting the unregistered yacht, the Princess 60, from an indoor salon when it struck the powerboat. The collision resulted in the death of Walter S. Krupinski, 81, of Norwalk, Conn., the only person onboard the powerboat, the Peggy K.
Bacon had been hired to pilot the Princess 60 from Newport, R.I., to a boat show in Stamford, Conn.
According to information presented to the Court, GPS data collected from the GPS system aboard the Princess 60 indicated the yacht approached the powerboat at an average speed of 25.2 knots. The Princess 60 was equipped with an operating horn, VHF marine radiotelephone, navigation system, and radar system, among other safety equipment.
Prior to the collision, the defendant failed to take precautions required by the ordinary practice of a seaman. Bacon did not post his First Mate to lookout, did not make proper use of radar, and did not himself see the powerboat in time to avoid the collision. As a result of his failure to see the Peggy K, Bacon did not make passing arrangements, sound the horn, change course, slacken speed, or stop or reverse propulsion to avoid a collision.
After the collision, Bacon failed to make proper use of the VHF marine radiotelephone by notifying the United States Coast Guard of the emergency.
Mr. Krupinski died as a result of multiple blunt force injuries sustained when the 67,241-pound yacht ran up and over the open cockpit of the powerboat.
Bacon’s guilty plea before U.S. District Court Judge John J. McConnell, Jr., to seaman’s manslaughter is announced by United States Attorney Stephen G. Dambruch; Admiral Steven Poulin, Commander of the First Coast Guard District, United States Coast Guard; and Richard Cox, Special Agent in Charge of United States Coast Guard Investigative Service, New England Region.
Bacon is scheduled to be sentenced on January 17, 2019.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The matter was investigated by the United States Coast Guard Investigative Service.
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Louisiana Man Pleads Guilty to Attempted Bank RobberyRead the Press Release
U.S. Attorney Peter G. Strasser announced that MICHAEL COLLIER, age 56, of New Orleans, pleaded guilty before United States District Judge Jay C. Zainey.
According to the indictment filed in this case, on April 25, 2018, COLLIER attempted to rob the Capital One Bank located at 2700 South Claiborne Avenue, New Orleans, LA.
COLLIER faces a sentence of up to twenty years in prison, a fine of up to $250,000, and up to three years supervised release. He is scheduled to be sentenced on January 29, 2019.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Gregory Kennedy is in charge of the prosecution.
Killeen Husband and Wife Plead Guilty to Federal Child Exploitation ChargesRead the Press Release
United States Attorney John F. Bash, Secret Service Special Agent in Charge Paul Duran, and Texas State Attorney General Ken Paxton announced that 26-year-old Christopher Almaguer and his wife, 27-year-old Sarah Rashelle Almaguer, of Killeen pled guilty today in Waco, Texas, to one count of sexual exploitation of children and one count of production of child pornography. The Almaguers each face a mandatory minimum term of 15 years up to 30 years in federal prison on each count.
Appearing before United States Magistrate Judge Jeffrey C. Manske, the Almaguers admitted that in December 2017 they uploaded sexually explicit videos of themselves sexually assaulting children as young as eight months old. According to court records investigators compiled a list of approximately 25 potential minor child victims, ranging in age from infants to fourteen years of age, from the Central Texas area.
The Almaguers have remained in custody since their arrests by investigators with the Texas Office of Attorney General, Child Exploitation Unit, and special agents with the United States Secret Service in February 2018. Sentencing has been scheduled before United States District Judge Alan D. Albright for January 29, 2019.
This case was investigated by the Texas Office of the Attorney General, Criminal Investigations Division, Child Exploitation Unit, the United States Secret Service and the Killeen Police Department. Assistant United States Attorney Gregory S. Gloff is prosecuting this case on behalf of the Government.Justice Department Reports Major Increases in Victim Reporting and Number of Lawsuits Filed in One Year Since Launch of Initiative to Combat Sexual Harassment in HousingRead the Press Release
The Justice Department today announced the one-year anniversary of its initiative to combat sexual harassment in housing. Since its launch in October 2017 and nationwide expansion in April 2018, the Department has seen a major upswing in both reporting and enforcement. Over the past year, the Department has:
- Opened 34 new sexual harassment matters. This is more than any previous year and nearly five times the number of matters opened in the prior year.
- Filed six pattern-or-practice lawsuits challenging alleged sexual harassment in housing. This is more than the Department has filed in any previous year.
- Western District of Michigan - United States v. Tjoelker,
- District of Kansas - United States v. Cao Properties and Rentals,
- Southern District of Ohio - United States v. Klosterman,
- Northern District of New York - United States v. Waterbury,
- Northern District of Alabama - United States v. Hames,
- Western District of Oklahoma - United States v. Pelfrey.
“This important initiative is giving a voice to victims of sexual harassment in housing. It also sends the strong message that the Department is listening to victims and taking action against landlords and managers who attempt to prey on vulnerable individuals all over the country,” said Acting Assistant Attorney General John Gore for the Civil Rights Division. “The Justice Department remains committed to our goal to make more people aware that no one should have to choose between a home and the right to be free from sexual harassment.”
“A home can never be a place of peace and comfort for individuals who are subjected to sexual harassment,” said Anna María Farías, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “We still have work to do, but the initiative has taken tremendous steps this past year toward addressing this unlawful behavior and the Justice Department and HUD remain committed to doing even more to inform the public about their housing rights.”
The Department took several steps this past year to drive an increase in reporting and enforcement.
First, the Department held 20 roundtables about sexual harassment in housing at U.S. Attorneys’ Offices across the country. At these events, the Department creates opportunities for collaboration with local community partners, including engaging local law enforcement officers, legal aid offices, fair housing organizations, universities, civil rights organizations, and other groups.
U.S. Attorney Roundtables Hosted this Year:
Central District of California
District of Colorado
Middle District of Florida
Northern District of Georgia
Northern District of Iowa
District of Maryland
District of Massachusetts
Eastern District of Michigan
District of Minnesota
District of New Jersey (2)
Eastern & Southern Districts of New York (joint)
Northern District of Ohio
Eastern District of Pennsylvania
District of South Dakota
Northern District of Texas
District of Vermont
Western District of Virginia (2)
Second, the Department created an outreach toolkit designed to leverage the nationwide network of U.S. Attorney’s Offices and boost local outreach about sexual harassment in housing.
Third, the Department released a Public Service Announcement (PSA), in conjunction with the U.S. Department of Housing and Urban Development (HUD), featuring three women who were identified as victims of sexual harassment in DOJ lawsuits. The Department developed a 60-second video featuring three women who were injured parties in sexual harassment lawsuits brought by the Department under the Fair Housing Act. In the PSA, the women, in their own words, share the stories of how they were harassed and the impact the experience has on their lives. The PSA is posted on the Department’s YouTube channel.
Fourth, the Department launched a webpage on sexual harassment in housing. It is available in both English and Spanish. The webpage has resources available to download. This includes a partnership toolkit, flyers in 11 languages (English, Spanish, Arabic, Chinese (simplified), Chinese (traditional), Haitian Creole, Hindi, Korean, Tagalog, Urdu, and Vietnamese), palm cards in English and Spanish, and information sheets for advocates in English and Spanish.
Finally, the Department and HUD launched a new Task Force to Combat Sexual Harassment in Housing. It is focused on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies. The Task Force has facilitated collaboration between DOJ and HUD in drawing attention to the national PSA, including distributing it to public housing authorities, on HUD’s YouTube channel, and through social media.
More information about the Civil Rights Division and the civil rights laws it enforces is available at justice.gov/crt. If you believe you may be a victim of sexual harassment in housing, you should:
- call the Justice Department at 1-844-380-6178,
- send an e-mail to [email protected], or
- contact HUD at 1-800-669-9777.
If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.
Justice Department Protects Eastern District of Texas Election ProcessRead the Press Release
BEAUMONT, Texas – United States Attorney Joseph D. Brown announced today that Assistant United States Attorneys (AUSAs) have been appointed to lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election. AUSA Michelle Englade has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Texas, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Brown said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Brown said that in addition to AUSA/DEO Englade, AUSAs Allen Hurst and M. Andrew Stover will be on duty in the Eastern District of Texas while the polls are open. AUSA Englade can be reached by the public in Beaumont at 409-839-2538, AUSA Hurst can be reached in Tyler, Texas, at 903-590-1400, and AUSA Stover can be reached in Plano, Texas, at 972-509-1201.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The FBI can be reached by the public in the Eastern District of Texas at the following telephone numbers:
Beaumont – 409-832-8571
Frisco – 214-705-7000
Lufkin – 936-637-3834
Sherman – 903-892-8754
Texarkana – 870-773-3382
Tyler – 903-592-4301Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Brown said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
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Justice Department Continues to Protect the Right to Vote and Prosecute Ballot FraudRead the Press Release
In anticipation of the upcoming general elections, the Department of Justice today provided information about its efforts through the Civil Rights Division and Criminal Division to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process.
“Voting rights are constitutional rights, and they’re part of what it means to be an American,” Attorney General Jeff Sessions said. “The Department of Justice has been entrusted with an indispensable role in securing these rights for the people of this nation. This year we are using every lawful tool that we have, both civil and criminal, to protect the rights of millions of Americans to cast their vote unimpeded at one of more than 170,000 precincts across America. Citizens of America control this country through their selection of their governmental officials at the ballot box. Likewise, fraud in the voting process will not be tolerated. Fraud also corrupts the integrity of the ballot.”
Civil Rights Division:
The Civil Rights Division is responsible for ensuring compliance with the civil provisions of federal statutes that protect the right to vote, and with the criminal provisions of federal statutes prohibiting discriminatory interference with that right.
The Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including the Voting Rights Act, the Uniformed and Overseas Citizens Absentee Voting Act, the National Voter Registration Act, the Help America Vote Act, and the Civil Rights Acts. Among other things, collectively, these laws:
- prohibit election practices that have either a discriminatory purpose based on race or membership in a minority language group or a discriminatory result such that members of racial or language minority groups have less opportunity than other citizens to participate in the political process;
- prohibit intimidation of voters;
- provide that voters who need assistance in voting because of disability or illiteracy can obtain assistance from a person of their choice (other than agents of their employer or union);
- provide for accessible voting machines for voters with disabilities;
- provide for provisional ballots for voters who assert they are registered and eligible but whose names do not appear on poll books;
- provide for absentee registration and ballots for uniformed service members, their family members and U.S. citizens living abroad;
- provide that citizens can register to vote through drivers’ license, public assistance or disability services offices, and through the mail; and
- include requirements regarding maintaining voter registration lists.
The Civil Rights Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.
On Election Day, Nov. 6, 2018, the Civil Rights Division will implement a comprehensive program to help protect the right to vote that will include the following:
- The Civil Rights Division will conduct monitoring in the field at polling places around the country.
- Civil Rights Division staff in Washington, D.C., will be ready to receive election-related complaints of potential violations relating to any of the federal statutes the division enforces. The division will take appropriate action and will coordinate with other entities within the Department of Justice concerning these complaints before, during, and after Election Day.
- Civil Rights Division staff will be available to receive complaints related to voting by telephone (1-800-253-3931 toll free or 202-307-2767) or by TTY (202-305-0082), by fax (202-307-3961), by email ([email protected]), and, by complaint form on the Department’s website at https://www.justice.gov/crt/voting-section.
Complaints related to violence, threats of violence, or intimidation at a polling place should always be reported immediately to local authorities by calling 911. They should also be reported to the Department after local authorities are contacted.
Criminal Division and the Department’s 94 U.S. Attorneys’ Offices:
The Department’s Criminal Division oversees the enforcement of federal laws that criminalize certain forms of election fraud and protect the integrity of the federal election process.
The Criminal Division’s Public Integrity Section and the Department’s 94 U.S. Attorneys’ Offices are responsible for enforcing the federal criminal laws that prohibit various forms of election fraud, such as vote buying, multiple voting, submission of fraudulent ballots or registrations, alteration of votes, and malfeasance by election officials. The Criminal Division is also responsible for enforcing federal criminal law prohibiting voter intimidation for reasons other than race, color, national origin, or religion (as noted above, voter intimidation that has a basis in race, color, national origin or, religion is addressed by the Civil Rights Division).
The U.S. Attorney’s Offices around the country designate Assistant U.S. Attorneys who serve as district election officers (DEOs) in the respective districts. DEOs are responsible for overseeing potential election-crime matters in their districts, and for coordinating with the Department’s election-crime experts in Washington, D.C.
On Nov. 6, the U.S. Attorneys’ Offices will work with specially trained FBI personnel in each district to ensure that complaints from the public involving possible voter fraud are handled appropriately. Specifically:
- In consultation with federal prosecutors at the Public Integrity Section in Washington, D.C., the District Election Officers in U.S. Attorneys’ Offices, FBI officials at Headquarters in Washington, D.C., and FBI special agents serving as Election Crime Coordinators in the FBI’s 56 field offices will be on duty while polls are open, to receive complaints from the public.
- Election-crime complaints should be directed to the local U.S. Attorney’s Offices or the local FBI office. A list of U.S. Attorneys’ Offices and their telephone numbers can be found at https://www.justice.gov/usao/find-your-united-states-attorney. A list of FBI offices and accompanying telephone numbers can be found at www.fbi.gov/contact-us.
- Public Integrity Section prosecutors are available to consult and coordinate with the U.S. Attorneys’ Offices and the FBI regarding the handling of election-crime allegations.
Complaints related to violence, threats of violence, or intimidation at a polling place should be reported first to local police authorities by calling 911.
Both protecting the right to vote and combating election fraud are essential to maintaining the confidence of all Americans in our democratic system of government. The Department encourages anyone with information suggesting voting discrimination or ballot fraud to contact the appropriate authorities, and notes in particular that the Department of Homeland Security plays its own important role in safeguarding critical election infrastructure from cyber and other threats.
Jefferson Dispatcher Pleads Guilty to Wire FraudRead the Press Release
U.S. Attorney Peter G. Strasser announced that NICOLE SERUNTINE, age 35, an employee of Company A.M.M., pleaded guilty today to a one-count Bill of Information charging her with wire fraud.
According to the Bill of Information, from around June 2010 through February 2017, NICOLE SERUNTINE worked as a secretary and dispatcher at Company A.M.M., located in Jefferson, Louisiana. Around October 2014 through February 17, 2017, SERUNTINE devised a scheme to defraud Company A.M.M. out of more than $500,000 by using her role as administrative assistant to order a fuel card that she was not entitled to use, and unlawfully used it for her own personal expenses, including food, gas, and cash advances.
NICOLE SERUNTINE could face up to 20 years imprisonment, a fine of up to $250,000 or twice the gross gain or loss, 3 years of supervised release, and a special assessment of $100.
U.S. Attorney Peter G. Strasser stated that a Bill of Information is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the United States Secret Service. Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.
Jackson Man Sentenced to Almost Twenty Years in Believed to be Largest Ponzi Scheme in State HistoryRead the Press Release
Jackson, Miss. – Arthur Lamar Adams, 58, of Jackson Mississippi, was sentenced today to 235 months in federal prison for wire fraud involving a large, multi-state Ponzi scheme involving more than one hundred million dollars and hundreds of victims spanning a number of years, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
United States District Judge Carlton Reeves sentenced Adams to serve nineteen and a half years in prison, followed by three years of supervised release, on a charge of wire fraud involving a scheme and artifice to defraud investors in connection with a Ponzi scheme using Madison Timber Properties, LLC, a company wholly owned by Adams. Judge Reeves ordered full restitution to be paid to the victims of the scheme. During the last year of the scheme, Adams fraudulently obtained in excess of $164.5 million dollars from more than 320 investors located in at least 14 different states.
"Justice was served today, but does not end today. While this fraudster will now spend almost the rest of his entire life behind bars, we will not rest until restitution is recovered and victims are restored. My heart goes out to those who lost their retirement, their life savings, their life lines to this greedy, selfish man. Rest assured that we will continue to work with our federal, state and local partners to root out fraud in the future and bring these criminals to justice," said U.S. Attorney Mike Hurst.
Over a period of at least 7 years, Adams executed this sophisticated Ponzi scheme using Madison Timber Properties, LLC, a company wholly owned by Adams. From as early as 2011 through April 2018, Adams’s scheme defrauded investors by soliciting millions of dollars of funds under false pretenses, failing to use the investors’ funds as promised, and converting investors’ funds to Adams’s own benefit without the knowledge of the investors. Instead of investing his clients’ money, Adams used the invested funds for his own personal benefit and for purposes other than those represented to investors, which also included making payments due and owing to other investors, thus perpetuating the Ponzi scheme. During the fraudulent scheme, Adams fraudulently obtained well in excess of one hundred million dollars from more than 250 investors located in at least 14 different states.
As part of his fraudulent scheme, Adams falsely represented to investors that Madison Timber Properties was in the business of buying timber rights from landowners and then selling the timber rights to lumber mills at a higher price. The object of the scheme was to cause
individuals to invest in loans that purportedly were for the purpose of financing contracts for the purchase of timber rights to be sold to lumber mills at a higher price. However, neither Adams nor Madison Timber Properties had such timber rights or contracts with lumber mills, except in only a few instances.
Adams entered into fraudulent investment contracts with investors, most often in the form of promissory notes on behalf of Madison Timber Properties. The loans typically guaranteed investors an interest rate of 12-13%, with the interest to be repaid to investors over the course of 12-13 months. The monthly payments due on these promissory notes were typically due on either the first or the fifteenth of the month.
Adams created false documents causing investors to believe that their investments were secured by sufficient collateral from which they could recover all or part of their investment in the event that Madison Timber Properties defaulted on the loans. Specifically, Adams created false timber deeds purporting to be contracts conveying timber rights from landowners to Madison Timber Properties. Adams forged the signatures of landowners and also created false timber deeds purporting to convey timber rights from Madison Timber Properties to the investors.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Dave Fulcher.
Insider Trading Defendant Sentenced to Federal PrisonRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that U.S. District Judge John W. deGravelles sentenced SALVADOR JOSEPH RUSSO, III, age 35, of Baton Rouge, Louisiana, to 16 months in federal prison following his convictions for securities fraud (insider trading) and conspiracy to commit securities fraud. The Court also sentenced RUSSO to 1 year of supervised release following his term of imprisonment.
In May of this year, a jury found RUSSO and his co-defendants guilty as charged in connection with an insider trading scheme related to the 2012 acquisition of the Shaw Group (“Shaw”) by Chicago Bridge and Iron Company (“CB&I”). According to evidence presented at trial, in mid-2012, Shaw was considering a potential merger opportunity. At the time, Kelly Liu was a Shaw employee working in the Financial Planning and Analysis Department. In July 2012, Shaw and CB&I came to an agreement on an offer for CB&I to buy Shaw. This merger between the two companies was publicly announced on July 30, 2012 (“the public announcement”). As a result of the public announcement, Shaw’s stock price rose by around 55 percent.
At the time of the public announcement, RUSSO, a car salesman in Baton Rouge, had been Liu’s boyfriend for several years.
The evidence at trial established that, prior to the public announcement and through her job at Shaw, Liu had obtained inside information that Shaw was going to be acquired by another company and had passed the inside information to Victory Ho, through another individual, and to RUSSO, for their use in trading Shaw stock and options. Thereafter, Victory Ho and RUSSO purchased Shaw stock and options before the public announcement. Through his timely $5,000 purchase of Shaw stock in a family member’s account, RUSSO secured a profit of approximately $4,000.
During the sentencing hearing, the Court found that RUSSO had obstructed justice through his testimony at the trial.
United States Attorney Fremin stated, “The manipulation of our securities market undermines those honest investors who take great care to play by the rules when investing their hard earned income. This sentence should send a clear message to anyone who uses insider trading information that this type of behavior will not be tolerated by my office. I am grateful for the tireless efforts of our prosecutors and law enforcement partners from the FBI, Secret Service, and IRS who worked diligently on this important matter.”
Co-defendant Victory Ho, a Morgan City businessman and associate of RUSSO, was sentenced to 32 months in federal prison last week following his convictions in the same scheme. Victory Ho was also ordered to forfeit over $300,000 and to pay a $15,000 fine.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Baton Rouge offices of the FBI, Secret Service, and IRS-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Chris Dippel and Patricia Jones.
Illinois Man Sentenced to 11 Years in Prison for Running California-Based Synthetic Drug Trafficking RingRead the Press Release
FRESNO, Calif. — Douglas Jason Way, aka Jason Way, 45, of Evanston, Illinois, was sentenced Monday to 11 years in prison following his conviction by a jury on five felony drug charges and two fraudulent misbranded drug charges, announced U. S. Attorney McGregor W. Scott; Special Agent in Charge Christopher Nielsen, Drug Enforcement Administration, San Francisco Field Division; and Special Agent in Charge Tara Sullivan, IRS Criminal Investigation, Oakland Field Office.
The convictions concerned the manufacture and distribution of 24 tons of synthetic cannabinoids or designer drugs, commonly known at the street level as “spice,” “K2,” “herbal incense,” or “potpourri.”
Way was convicted following a four-week jury trial in federal court in Fresno in June and July 2018. Following his release from prison, Way will serve a three-year term of supervised release. As a further part of the sentence, U.S. District Judge Dale A. Drozd ordered a money judgment of $589,199.48 against Way. In addition to this money judgment, the U.S. Attorney’s Office previously forfeited more than $6.5 million of drug proceeds: $6,488,000 in cash and $191,000 in other assets, including a 2013 Ford F350 pickup truck and a 2014 Airstream travel trailer.
“Way led an illegal business manufacturing and distributing large quantities of harmful, mislabeled synthetic cannabinoids nationwide for profit,” said United States Attorney Scott. “The sentence imposed today reflects the seriousness of that crime and the danger these drugs pose to our communities. I am grateful to the dedicated efforts of our federal law enforcement partners, who conducted an intensive two-year investigation that led to Way’s prosecution and conviction, as well as the disgorgement of his illegally-gotten gains. We will continue to investigate and prosecute drug traffickers who masquerade as legitimate businessmen.”
“Synthetic cannabinoids are dangerous designer drugs that destroy lives. Today, Way is being held accountable for producing this poison and distributing it in communities throughout the country,” stated DEA Special Agent in Charge Chris Nielsen. “The success of this extensive investigation can be attributed to strong law enforcement partnerships and good police work.”The trial evidence established that Way was the Executive Leader of ZenBio, LLC, a company that manufactured and distributed misbranded synthetic cannabinoids throughout the country, including to Stuffed Pipe smoke shops and other retail establishments in the Central Valley. The processing labs were located in Millbrae and Stockton, California, where raw synthetic drugs from China would be diluted with acetone and mixed in cement mixers with flavoring and smokeable dried plant material. The finished product would be packaged in opaque metallic bags and sold as “potpourri” or “incense” under various brand names, including Bizarro, Headhunter, Neutronium, Sonic Zero, and Orgazmo. Documents found at the processing labs and in their computers showed that Way understood that XLR11, also known as 5-F-UR-144, one of the synthetic substances used in ZenBio products, were controlled substance analogues, that is, designer drugs that were substantially similar in chemical composition and pharmacological effect to a schedule I controlled substance. Way took significant steps to evade detection by law enforcement. After law enforcement seizures of raw chemicals and finished synthetic cannabinoid products, he would reship the substances using a different carrier. He would not disclose the ingredients or potential adverse effects of the products. In fact, he would send lab reports with purchased goods that indicated what substances were not contained in the shipment. When confronted by DEA and IRS agents, he insisted that he was selling incense and that the drugs in China were added for a “smoldering” effect.
During the brief lifespan of ZenBio, Way made $589,199.48 in three months, and the company earned over $32 million. ZenBio employed about 200 employees who manufactured, shipped, and sold their products. The evidence at trial also showed that Way negotiated for the purchase of large quantities of XLR11 from China to manufacture the finished smokeable product.
At Way’s sentencing, Dr. Jordan Trecki, a DEA pharmacologist, testified that XLR11 can cause severe toxic effects, including acute kidney damage, organ and respiratory failure, rapid heartbeat, hypothermia, and death. The drug first made its appearance in the United States in 2011 and was scheduled by the DEA as a Schedule I controlled substance in May 2013.This case was the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the DEA, IRS Criminal Investigations, and Homeland Security Investigations (HSI), with assistance from the Food and Drug Administration (FDA), and the Fresno County Sheriff’s Office. Numerous other law enforcement agencies assisted in follow-up investigation, including the St. Cloud, Minnesota Police Department; Mars Hill, North Carolina Police Department; Montgomery County, North Carolina Sheriff’s Office; Buncombe County, North Carolina, Sheriff’s Office; and Willis, Texas Police Department.
The OCDETF Program was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. This OCDETF investigation was also part of a nationwide law enforcement effort coordinated by the DEA’s Special Operations Division. Assistant United States Attorneys Karen A. Escobar and Vincenza Rabenn prosecuted the case.
Huntington Beach Man Pleads Guilty to Filing a False Tax Return That Failed to Report over $2 Million Held in Offshore Israeli Bank AccountRead the Press Release
A Huntington Beach man pleaded guilty yesterday to filing a false tax return that failed to report millions of dollars in foreign bank accounts and the resulting income, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Elie Waknine, of Huntington Beach, California, held millions of dollars in an offshore account in Israel at Bank Leumi Le-Israel B.M. from approximately 1994 to 2011. Despite having this account, Waknine filed a tax return for 2007 that falsely claimed he did not have financial interest in or signature authority over any foreign financial accounts. In an effort to further hide his money, Waknine instructed Bank Leumi to hold bank mail from delivery to the United States, and obtained access to his offshore funds through the use of “back-to-back” loans, which were designed to enable borrowers to tap their concealed accounts. These lending arrangements permitted Waknine to have funds issued by Leumi’s U.S. branch that were secretly secured by funds in his undeclared accounts in Israel. In 2011, Waknine closed his Bank Leumi Israel account, but used the $2.4 million he received from closing the account to open a new undisclosed foreign bank account at another bank in Israel. Over the period 1994-2015, Waknine held undisclosed foreign bank accounts in four banks in three countries, each with assets of at least $1 million.
In December 2014, Bank Leumi entered into a deferred prosecution agreement, in which the bank admitted to conspiring from at least 2000 until early 2011 to aid and assist U.S. taxpayers to prepare and present false tax returns by hiding income and assets in offshore bank accounts in Israel and other foreign locations. Under the terms of the deferred prosecution agreement, Bank Leumi paid the United States a total of $270 million and continues to cooperate with respect to civil and criminal tax investigations.
U.S. citizens, resident aliens, and permanent legal residents with a foreign financial interest in or signatory authority over a foreign financial account worth more than $10,000 are required to file an FBAR each year disclosing the account, and are required to report the account and any resulting income on their annual tax returns.
Waknine faces a maximum sentence of three years in prison, as well as a period of supervised release, restitution and monetary penalties. District Court Judge David O. Carter set Waknine’s sentencing for January 28, 2019.
Principal Deputy Assistant Attorney General Zuckerman commended special agents from IRS-Criminal Investigation, who investigated the case, and Tax Division Assistant Chief Elizabeth Hadden and Trial Attorney Eric Schmale, who are prosecuting the case. The Tax Division thanks the U.S. Attorney’s Office of the Central District of California for its assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Harrisburg Man Pleads Guilty to Possession of Stolen GunRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tommy Lee Phillips, age 30, of Harrisburg, Pennsylvania, pled guilty on October 29, 2018, before Chief U.S. Magistrate Judge Martin C. Carlson for being a felon in possession of a stolen handgun.
According to United States Attorney David J. Freed, on October 10, 2017, Harrisburg Police responded to a call of a man with a gun at a Harrisburg bar. When officers responded, they observed Phillips on the street near the bar. After running from police, officers arrested Phillips and found near where he was arrested a stolen .380 caliber handgun. Phillips was previously convicted in federal court for robbery, therefore he was prohibited by law from possessing a firearm.
No sentencing date has been scheduled as of yet.
The case was investigated by the Federal Bureau of Investigation and the Harrisburg Police Department. Assistant U.S. Attorney Michael Consiglio 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. 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.
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 these offenses is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Glendale Woman Sentenced for Filing False Tax ReturnsRead the Press Release
PHOENIX – On Oct. 29, 2018, Jenniffer Torner Lopez, 40, of Glendale, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to fifteen months incarceration. Torner had previously pleaded guilty to one count of fraud in connection with identification documents and a separate count of illegal reentry after deportation.
In her plea agreement, Torner admitted to engaging in a false tax preparation scheme out of, and storing foreign identification cards in, her home. She used the identification cards to obtain taxpayer identification numbers and file returns for foreign nationals, many of whom neither lived nor worked in the United States. The Internal Revenue Service paid out over $246,000 in tax refunds as a result of Torner’s scheme, and she put some of her share of this money towards the purchase of her residence. As part of the plea agreement, the Court ordered Torner to pay restitution to the Internal Revenue Service, which will be satisfied in part by the forfeiture of Torner’s home.
The investigation preceding the indictment was conducted by the Internal Revenue Service-Criminal Investigations, with assistance from Homeland Security Investigations. The prosecution was handled by Gary M. Restaino and Mark J. Wenker, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-18-139-PHX-DJH
RELEASE NUMBER: 2018-142_Torner
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Valeant Executive and Former Philidor CEO Sentenced for Illegal Kickback SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that GARY TANNER, a former executive at Valeant Pharmaceuticals International, Inc. (“Valeant”), was sentenced today to 1 year and 1 day in prison, and ANDREW DAVENPORT, the former chief executive officer (“CEO”) of Philidor Rx Services LLC (“Philidor”), was sentenced today to 1 year and 1 day in prison, after having been found guilty by a federal jury for engaging in a multimillion-dollar kickback scheme. TANNER and DAVENPORT were sentenced in Manhattan federal court by Senior United States District Judge Loretta A. Preska, who also presided over the defendants’ four-week jury trial in May 2018.
U.S. Attorney Geoffrey S. Berman said: “Gary Tanner and Andrew Davenport conspired to deceive and defraud Tanner’s employer, Valeant, in order to enrich them both. Tanner was entrusted to manage Valeant’s relationship with Davenport’s company. Instead, they devised a scheme to pillage Valeant and share the proceeds. Now Tanner and Davenport have been sentenced for their crimes.”
According to the allegations in the charging documents, statements made in court proceedings, and the evidence introduced at trial:
Valeant is a publicly traded pharmaceutical manufacturer headquartered in Canada, with its principal place of business in New Jersey. Philidor was a specialty mail order pharmacy that was formed in or about January 2013 with the assistance of Valeant. During the course of Philidor’s existence, at least 90 percent of the drugs dispensed by Philidor were Valeant-branded drugs.
TANNER was the Valeant executive primarily responsible for managing Valeant’s relationship with Philidor. TANNER was also responsible more broadly for Valeant’s alternative fulfillment (“AF”) program. Through its AF program, Valeant sought to increase doctor prescriptions and patient purchases of Valeant pharmaceuticals instead of generic substitutes or alternatives by helping obtain insurance coverage for those drugs or providing other incentives for prescription and purchase of Valeant drugs. As part of his work at Valeant, TANNER interacted directly with Philidor’s executives, including DAVENPORT, and senior Valeant executives.
Valeant and Philidor began negotiations for Valeant to purchase Philidor, and Valeant ultimately purchased an option to buy Philidor (the “Option”) in exchange for $133 million in payments to Philidor’s owners, and the promise of $100 million in additional milestone payments if Philidor were to meet certain sales targets. Despite the duty of loyalty owed by TANNER to Valeant, during negotiations relating to the Option, TANNER and DAVENPORT secretly made preparations for TANNER to receive a multimillion-dollar kickback out of the money that Valeant was going to pay Philidor’s owners for the Option. Among other things, TANNER and DAVENPORT set up shell company bank accounts in order to launder the kickbacks to TANNER. While these preparations were underway, TANNER secretly advised DAVENPORT on his negotiations with Valeant. TANNER did this in contravention of his duties to Valeant and despite the fact that he was also internally advising Valeant in its negotiations with DAVENPORT about the Option.
In addition to secretly helping DAVENPORT negotiate against Valeant in exchange for the promise of a kickback from DAVENPORT, TANNER took other actions to benefit Philidor and DAVENPORT personally, and against the direction of his supervisors at Valeant. For example, TANNER’s supervisors directed him to identify other pharmacies that Valeant could use to distribute its drugs, in order to minimize the risks of overreliance on Philidor. TANNER deceived his supervisors into believing that he was pursuing their direction in good faith when, in fact, he lied about participating in meetings and doing due diligence on potential competitors to Philidor. In addition, TANNER helped Philidor and DAVENPORT secure favorable payment terms.
In order to keep their scheme hidden from Valeant, TANNER often used a Philidor email account that TANNER maintained in the name of “Brian Wilson” to communicate with DAVENPORT. TANNER also pretended to be Brian Wilson in at least one meeting that he and DAVENPORT participated in on behalf of Philidor.
In December 2014, Valeant acquired the Option. DAVENPORT, through two different entities that he controlled, received approximately $50 million of the $133 million that Valeant paid. DAVENPORT transferred $9.7 million of that amount to TANNER through a shell company he controlled, and then to a shell company controlled by TANNER, an entity called Befrielse Consolidated, LLC (“Befrielse”). TANNER concealed his receipt of this money from Valeant, in violation of his fiduciary duties to Valeant, and in violation of Valeant’s conflict of interest policies. Prior to receiving the funds, TANNER had repeatedly certified to Valeant that he was in full compliance with Valeant’s Standards of Business Conduct, which prohibited any conflicts of interest without full disclosure and approval by company management.
After the Option purchase was completed, TANNER continued to use his position at Valeant to advance the interests of Philidor and DAVENPORT, including by resisting Valeant’s efforts to collect payments from Philidor owed to Valeant and pursuing milestone payments under the terms of the Option that he secretly expected to share in. In communications concerning the scheme, using TANNER’s secret Brian Wilson email account, DAVENPORT discussed with TANNER how TANNER would secretly continue to promote DAVENPORT’s interests, even while he purported to represent Valeant’s interests as the Valeant executive responsible for Philidor. Among other things, DAVENPORT stated that he pictured his and TANNER’s “butch and sundance ride into the sunset (or off the cliff as in the flick),” to which TANNER responded, using the secret Brian Wilson account: “[G]ave me a good chuckle when I just saw it. Will have to keep playing the game :).”
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In addition to the prison sentence, Judge Preska sentenced TANNER, 41, of Gilbert, Arizona, and DAVENPORT, 50, of Haverford, Pennsylvania, to two years of supervised release, and ordered each to forfeit approximately $9.7 million.
TANNER and DAVENPORT were found guilty by a unanimous jury on May 22, 2018, of conspiracy to commit honest services wire fraud, honest services wire fraud, conspiracy to violate the Travel Act, and conspiracy to commit money laundering.
Mr. Berman praised the work of the Federal Bureau of Investigation, and thanked the United States Securities and Exchange Commission for its cooperation and assistance.
This case was prosecuted by the Office’s Securities and Commodities Fraud Task Force and its Complex Frauds and Cyber Crime Unit. Assistant U.S. Attorneys Richard Cooper and Amanda Kramer are in charge of the prosecution.
Former Union Treasurer Pleads Guilty to Embezzlement of Money from A Labor OrganizationRead the Press Release
OAKLAND – Susan Elizabeth Kyle pleaded guilty in federal court in Oakland to embezzlement of money from a labor organization by an officer, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation (“FBI”) Special Agent in Charge John Bennett. The plea was accepted yesterday by the Honorable Haywood S. Gilliam, Jr., U.S. District Court Judge.
In pleading guilty, Kyle, 61, admitted to embezzling approximately $490,338 in funds that belonged to the union representing East Bay Regional Parks employees, the American Federation of State, County and Municipal Employees (“AFSCME”) Local 2428. Kyle served as the Treasurer of AFSCME Local 2428 between 1999 and 2014, with fiduciary responsibility for managing its funds. Kyle admitted she stole the money from AFSCME Local 2428 by instructing a payroll processing company to issue unauthorized payments to herself to which she was not entitled. Kyle admitted that she concealed her embezzlement from AFSCME Local 2428 by preparing reports that did not reflect the true expenditures.
On October 5, 2018, Kyle was charged by Information with one count of embezzlement of money from a labor organization by an officer, in violation of 29 U.S.C. § 501(c). Under the plea agreement, Kyle pleaded guilty to the count and agreed to pay full restitution to AFSCME Local 2428.
Kyle is currently released on bond pending sentencing. Judge Gilliam scheduled Kyle’s sentencing hearing for February 4, 2019. The maximum statutory penalty for a violation of 29 U.S.C. § 501(c) is five years and a fine of $10,000, plus restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Christina McCall is prosecuting the case with the assistance of Vanessa Quant and Katie Turner. The prosecution is the result of an investigation by the FBI.
Former Owner and Manager of Dubai-Based Investment Fund Found Guilty in Manhattan Federal Court of Securities Fraud Related OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that IRFAN AMANAT, the former owner and manager of Enable Invest Ltd. (“Enable”), a Dubai-based investment fund, was found guilty yesterday in Manhattan federal court of various securities fraud-related offenses, after a trial presided over by U.S District Judge Paul G. Gardephe. This follows the December 2017 conviction of co-defendants Omar Amanat and Kaleil Isaza Tuzman.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As the jury found, Irfan Amanat lied to auditors, investors, and the SEC about millions of dollars of KIT digital and Maiden Capital funds that were lost or misappropriated. Irfan Amanat now awaits sentencing for his multimillion-dollar deception.”
According to the Indictment and other filings in Manhattan federal court and the evidence presented at trial, AMANAT was engaged in two related criminal schemes:
The first scheme involved a fraud on investors in Maiden Capital LLC (“Maiden Capital”), a hedge fund based in Charlotte, North Carolina. Stephen Maiden was the managing member of Maiden Capital. Between in or about March 2009 and in or about June 2012, AMANAT, along with Maiden and others, devised and carried out a scheme to hide the fact that investments by Maiden Capital in Enable, an investment vehicle owned and managed by AMANAT, had been lost. To facilitate the scheme, Maiden, with AMANAT’s assistance, generated fictitious client account statements that failed to disclose millions of dollars in Enable-related losses.
The second scheme involved accounting fraud at KIT digital (“KITD”), a publicly traded company based in New York, New York, and Prague, Czech Republic. From at least in or about 2009 through in or about 2012, AMANAT, along with Tuzman, KITD’s former CEO, and Robin Smyth, KITD’s former CFO, engaged in an illegal scheme to deceive KITD shareholders, members of the investing public, KITD’s independent auditors, and others concerning KITD’s true operating performance and financial results. Instead of informing KITD’s auditors and investors that millions of dollars that KITD had invested with Enable had been lost or fraudulently misappropriated, AMANAT falsely represented that KITD’s investment with Enable was sound and earning steady interest.
Following the jury’s verdict, the government moved for AMANAT to be remanded into custody because, as alleged by the government, AMANAT attempted to obstruct justice by seeking to procure false bank documents in order to falsely demonstrate that two cooperating witnesses who testified at the trial and the 2017 trial had been paid for their testimony. An evidentiary hearing on this issue commenced and will continue at a later date.
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AMANAT, 46, was found guilty of one count of conspiracy to commit wire fraud, and one count of wire fraud, each of which carries a maximum penalty of 20 years in prison, and one count of aiding and abetting investment advisor fraud, and one count of conspiracy to commit securities fraud, make false statements in annual and quarterly SEC reports, and make false statements to auditors, each of which carries a maximum penalty of five years in prison.
The maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the Court.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and the U.S. Postal Inspection Service. He also thanked the SEC.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Damian Williams, Andrea M. Griswold, and Daniel M. Tracer are in charge of the prosecution.
Former Member of the U.S. Air Force Arrested on Federal Computer Fraud ChargesRead the Press Release
ALBUQUERQUE – Michael Weber, 22, of Alamogordo, N.M, made his initial appearance this afternoon in federal court in Albuquerque, N.M., on a criminal complaint charging him with a computer fraud offense. Weber remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled for tomorrow.
FBI agents arrested Weber early this morning at a residence in Alamogordo. According to the criminal complaint, Weber allegedly placed a program, information, code, or command known as a “spam bot” onto a government-issued cellular phone assigned to Weber’s supervisor on Jan. 16, 2018. The “spam bot” allegedly caused the cellular phone to receive a long string of messages allegedly intended to cause damage to the cellular phone. At the time he allegedly committed the offense, Weber was an Airman with the U.S. Air Force and was stationed at Cannon Air Force Base, N.M.
The statutory penalty for a conviction on the computer fraud offense is a maximum of ten years in federal prison and a $250,000 fine. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and is being prosecuted by Assistant U.S. Attorney Sean J. Sullivan.
Weber ComplaintFormer Department of Defense Employee Pleads Guilty to Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Mohammad Abdul Malek (67, St. Marys, GA) today pleaded guilty to attempted enticement and coercion of a minor. Malek faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between August 23 and August 26, 2018, Malek engaged in email and text communications with an undercover detective posing as a 13 year-old girl. Malek asked for photos of the “child” and told her he wanted to teach her about “making love.” Malek was advised and acknowledged that the “child” was a minor, and suggested that they meet to engage in sex. On August 26, 2018, Malek traveled to Jacksonville to meet the “child,” and was arrested by officers from the Jacksonville Sheriff’s Office.
This case was investigated by the Jacksonville Sheriff’s Office and U.S. Immigration and Custom Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Ashley Washington.
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 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.
Former CFO of New Haven Biotech Firm Admits Embezzling $1 MillionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that THOMAS MALONE, 49, of New Haven, pleaded guilty today in New Haven federal court to charges related to his embezzlement of approximately $1 million from a New Haven biotech company that receives federal research grants.
According to court documents and statements made in court, Malone was the chief financial officer (CFO) of Artificial Cell Technologies, Inc. (ACT) of New Haven, a small biotech company that is currently working on developing better ways to deliver malaria and Respiratory Syncytial Virus vaccines to affected populations. In addition to receiving funding from private investors, ACT has received approximately $4.1 million in grants from the National Institutes of Health (NIH) since 2008. As the CFO, Malone’s responsibilities included collecting, posting, and depositing investor and grant funds; tracking and reporting grant expenditures; managing accounts payable and cash disbursements; facilitating payroll; reconciling ACT credit card and bank accounts; and providing overall financial management.
In November 2016, ACT’s chief executive officer discovered that Malone was paying himself approximately $660,000 in annual salary, far above the approximately $281,000 in salary he was entitled to receive. Upon further review of payroll and other financial records, ACT’s CEO discovered that, for several years, Malone had been writing checks to himself that were disguised as bonuses, that he had been giving himself unauthorized additional salary payments, that he had been using the ACT credit card for personal expenditures, and that he had used ACT’s funds to make unauthorized donations to an organization that Malone personally supported. A subsequent forensic audit revealed that, between 2012 and 2016, Malone had embezzled nearly $1 million from ACT.
Malone was arrested on a criminal complaint on March 1, 2018.
Malone pleaded guilty to four counts of theft from a program involving federal funds, an offense that carries a maximum term of imprisonment of 10 years on each count. He also has agreed to pay restitution of $1,031,508.07.
Malone is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on January 18, 2019. He is released on a $50,000 bond pending sentencing.
This matter is being investigated by the U.S. Department of Health and Human Service, Office of Inspector General, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Former CEO of Mariner’s Bank and Accomplice Both Charged with Scheme to Obtain Nominee Loans from Mariner’s BankRead the Press Release
NEWARK, N.J. – The former CEO of Mariner’s Bank and an accomplice both were charged today for their roles in a scheme to obtain nominee loans from Mariner’s Bank, U.S. Attorney Craig Carpenito announced.
Fred Daibes, the former CEO and Chairman of the Board of Directors at Mariner’s Bank, and Michael McManus, the CFO of Daibes Enterprises, a consortium of companies specializing in real estate development, were charged by a federal grand jury with one count of conspiracy to misapply bank funds and to make false entries to deceive a financial institution and the FDIC. Daibes, 61, of Edgewater, New Jersey, also was charged with five counts of misapplying bank funds, six counts of making false entries to deceive a financial institution and the FDIC, and one count of causing reliance on a false document to influence the FDIC. McManus, 61, of Madison, New Jersey, was charged with four counts of misapplying bank funds, one count of making false entries to deceive a financial institution and the FDIC, one count of causing reliance on a false document to the influence the FDIC, and two counts of loan application fraud. The defendants will have their initial appearances and arraignments at a later date.
According to documents filed in this case:
Daibes was the founder and, until April 2011, Chairman of the Board of Directors of Mariner’s Bank. During the relevant time period, Mariner’s Bank was subject to federal banking regulations that placed limits on the amount of money that the bank could lend to a single borrower (the “Lending Limits”). Between January 2008 and December 2013, Daibes, McManus, and others orchestrated a nominee loan scheme designed to circumvent the Lending Limits by ensuring that millions of dollars in loans (the “Nominee Loans”) flowed from the nominees to Daibes, while concealing his beneficial interests in those loans from both Mariner’s Bank and the FDIC.
Daibes and others recruited nominees, including McManus, to make materially false and misleading statements and material omissions to Mariner’s Bank to obtain the Nominee Loans, including by concealing that Daibes was the true beneficiary. After receiving the proceeds of the Nominee Loans, the nominees distributed these monies to Daibes. Daibes and the nominees also failed to disclose to Mariner’s Bank that, in certain instances, Daibes pledged the collateral for the Nominee Loans, while, in other cases, he arranged to make both the interest and principal payments on the Nominee Loans.
In order to convince Mariner’s Bank to approve two of the Nominee Loans, McManus signed and provided to Mariner’s Bank a false certification attesting to the profitability of gas stations that two of the nominees had pledged as collateral after purchasing the gas stations from Daibes in sham transactions. After the FDIC began an investigation into one of the Nominee Loans, Daibes, McManus, and others created and submitted to the FDIC a backdated sales contract to make it falsely appear as though one of the nominees had obtained one of the nominee loans from Mariner’s Bank in order to pay Daibes for his interest in a real estate venture.
On the count of conspiracy to misapply bank funds and to make false entries to deceive a financial institution and the FDIC, the defendants face a statutory maximum term of imprisonment of 5 years and a maximum fine of $250,000. On the counts of misapplying bank funds, making false entries to deceive a financial institution and the FDIC, and causing reliance on a false document to influence the FDIC, the defendants face a statutory maximum term of imprisonment of 30 years and a maximum fine of $1,000,000. On the counts of loan application fraud, McManus faces a statutory maximum term of imprisonment of 30 years and a maximum fine of $1,000,000.
U.S. Attorney Craig Carpenito credited investigators from the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney, special agents of the FDIC, Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant United States Attorney Rahul Agarwal, Deputy Chief of the Criminal Division, and Assistant United States Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.
The charges and allegations in the indictment are only accusations and the defendants are considered innocent unless and until proven guilty.
Defense counsel:
Daibes: Lawrence S. Lustberg, Esq., Newark, New Jersey
McManus: John C. Whipple, Esq., Morristown, New JerseyFederal and State Officials and Maine ACLU Attorney Available to Field Election Fraud and Voting Rights ClaimsRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced today that his office, in cooperation with Maine State officials, will participate in the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018 general elections. The program is designed to handle complaints in the District of Maine of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington and the State of Maine Attorney General’s Office.
Assistant U.S. Attorneys (AUSAs) John G. Osborn and Andrew McCormack have been appointed to serve as the District Election Officers (DEOs) for the District of Maine. Maine Assistant Attorney General (AAG) Phyllis Gardiner and Deputy Secretary of State Julie Flynn will coordinate election oversight for the State of Maine. Attorney Zachary Heiden of the American Civil Liberties Union (ACLU) of Maine will also be available to assist anyone who experiences difficulty in exercising their right to vote.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” said U.S. Attorney Frank. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
Voting is the cornerstone of American democracy. We all must ensure that those who are entitled to vote exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, U.S. Attorney Frank stated that AUSAs/DEOs Osborn and McCormack will be on duty in his office while the polls are open. They can be reached by the public at the following telephone numbers: (207) 771-3214 (AUSA Osborn) and (207) 262-4615 (AUSA McCormack).
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (207) 774-9322.
AAG Phyllis Gardiner may be contacted at the Attorney General’s Office by calling: (207) 626-8830. Deputy Secretary of State Flynn can be reached at (207) 624-7650. Attorney Zachary Heiden of the ACLU of Maine will be available at (207) 650-9535.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
U.S. Attorney Frank said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Essex County, New Jersey Man Admits to Illegal Food Stamps SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man admitted today that he took part in a food stamps fraud scheme, U.S. Attorney Craig Carpenito announced.
Manuel Venegas, 54, of Newark, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of Supplemental Nutrition Assistance Program (SNAP) benefit fraud.
According to documents filed in this case and statements made in court:
From March 2015 to March 2018, Venegas was an employee of Jenny’s Deli, a small grocery store in Newark, New Jersey. Venegas’s daughter, Maria Teresa Venegas, was the listed owner of Jenny’s Deli and pleaded guilty to the same crime in September 2018.
Jenny’s Deli was authorized to accept benefits provided by SNAP, formerly known as the Food Stamp Program. The program is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for SNAP benefits but may not exchange SNAP benefits for cash. According to the charges against them, Maria Teresa Venegas and Manuel Venegas exchanged more than $885,000 in SNAP benefits for cash between 2011 and 2018.
Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, to use to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
In addition to the high volume of SNAP benefits redemptions for Jenny’s Deli, indicating fraud, law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of an undercover law enforcement agent who engaged in approximately 20 “purchases” at Jenny’s Deli where Manuel Venegas, Maria Theresa Venegas, or another Jenny’s Deli employee acting at their direction exchanged money for SNAP benefits.
The SNAP fraud charge carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 6 2019.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Laurie Fierro, Esq.
El Salvadoran Man Sentenced to Prison for Illegally Reentering the United StatesRead the Press Release
An El Salvadoran man who illegally returned to the United States after being deported was sentenced today to more than three months in federal prison.
Boris Martines-Garcia, age 35, a citizen of El Salvador illegally present in the United States and residing in Hopkinton, Iowa, received the prison term after a September 4, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Martines-Garcia admitted he had previously been deported from the United States in December 2006 and illegally reentered the United States without the permission of the United States government. Martines-Garcia was found by immigration agents in July 2018 after Martines-Garcia was stopped for speeding in Delaware County, Iowa.
Martines-Garcia was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Martines-Garcia was sentenced to 100 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Martines-Garcia is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2038-CJW.
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Drug Source Sentenced to 12.5 Years for Interstate Narcotics ConspiracyRead the Press Release
Montgomery, Alabama – Jessie Acosta, 41, of San Pedro, California, was sentenced to 150 months in prison for his role in a conspiracy to distribute kilogram quantities of cocaine, methamphetamine and marijuana throughout the Middle District of Alabama and Georgia, announced U.S. Attorney Louis V. Franklin. Acosta’s sentencing is the last of a string of convictions that dismantled a sophisticated drug trafficking conspiracy that stretched from San Pedro, California to Alabama and Georgia.
According to the evidence, the drug conspiracy consisted of 13 co-conspirators (including Jessie Acosta) who agreed to distribute kilogram quantities of cocaine, methamphetamine and marijuana. The 13 co-conspirators include:
- Dywane Lamont Turner, 37, of Smiths Station, Alabama. Turner was previously sentenced to 235 months in prison.
- Shauntell Martrece Walker, 28, of Columbus, Georgia. Walker was previously sentenced to 78 months in prison.
- RT Ray, 41, of Columbus, Georgia. Ray was previously sentenced to 63 months in prison.
- James Wesley Meadows, 48, of Smiths Station, Alabama. Meadows was previously sentenced to 77 months in prison.
- Ivan Dewayne Green, 38, of Columbus, Georgia. Green was previously sentenced to 70 months in prison.
- Ryan Kendrick Riggs, 35, of Auburn, Alabama. Riggs was previously sentenced to 92 months in prison.
- Christopher Bernard Adams, 39, of Columbus, Georgia. Adams was previously sentenced to 37 months in prison.
- Robert Williams, Jr., 35, of Smiths, Alabama. Williams was previously sentenced to 120 months in prisn.
- Danny Shane Lavender, 31, of Phenix City, Alabama. Lavender was previously sentenced to 15 months in prison.
- Calvin Ashford, 42, of Columbus, Georgia. Ashford was previously sentenced to 78 months in prison.
- Yasmin Jenean Walker, 50, of Columbus, Georgia. Walker was previously sentenced to 3 months in prison.
- Melvin John Williams, Jr., 28, of Columbus, Georgia. Melvin Williams was previously sentenced to 15 months in prison.
Also sentenced were Jessie Acosta’s brother, Joseph Acosta 30, of San Pedro, California and Vivian Ruvalcaba, 41, of San Pedro, California. Both Joseph Acosta and Vivian Ruvalcaba were prosecuted for their role in moving drug money between Alabama and California.
According to U.S. Attorney Franklin, “Friday’s sentencing is a victory for the citizens of Alabama and Georgia. From California, Mr. Jessie Acosta supplied large quantities of dangerous narcotics to communities in Phenix City, Alabama and Columbus, Georgia. Mr. Jessie Acosta’s long prison sentence reflects the seriousness of his crimes. I applaud the efforts of federal, state and local law enforcement in dismantling a sophisticated drug trafficking organization that stretched across the Country. I have no doubt that Mr. Jessie Acosta never expected to be prosecuted in Alabama. Drug traffickers everywhere should understand that aggressive drug enforcement may land them in prison far from home – just like Mr. Jessie Acosta.”
The case was investigated by the Drug Enforcement Administration (DEA) and the following agencies: The Elmore County Sheriff’s Office, the Central Alabama Drug Task Force, the Millbrook Police Department, the Eufaula Police Department, the Auburn Police Department, the Lee County Sheriff’s Department, the Russell County Sheriff’s Department, the Columbus, Georgia Police Department, the Alabama Law Enforcement Administration, the Prattville Police Department, the Montgomery Police Department, the Alabama Attorney General’s Office, the Autauga County Sheriff’s Office, the Metro Drug Task Force, the Columbus Georgia Regional Office of the Drug Enforcement Administration, the Troupe County Sheriff’s Office and the Alabama National Guard Counter Drug Unit.
Assistant United States Attorney Verne H. Speirs prosecuted the case.
Dominican Man Sentenced to Ten Years in Prison for Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD, N.H. - Raul Vantroi Arias Ruiz, 36, of the Dominican Republic, was sentenced to 120 months in federal prison for participating in a fentanyl trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, from at least December 6, 2016, through May 2, 2017, the defendant arranged for the sale of fentanyl to customers in New Hampshire, using his co-defendant, Yossi Rafael Rincon-Ramirez, to make drug deliveries. Four of the fentanyl sales he arranged during that time period were made to an undercover DEA agent in Nashua, New Hampshire.
Based on these drug buys, law enforcement officers arrested the defendant at his residence in Methuen, Massachusetts on May 2, 2017. After obtaining a search warrant for the residence, which included two adjacent apartments on the second floor of the building, law enforcement officers found approximately $941,994 in U.S. currency and two firearms, as well as approximately 90 grams of fentanyl, 20 grams of heroin, and 30 pounds of marijuana.
The $941,994 was forfeited to the United States in a civil forfeiture proceeding. As part of his plea agreement, Arias Ruiz also forfeited the firearms.
Arias Ruiz, who pleaded guilty on July 25, 2018, still faces state charges in Massachusetts related to the drugs and firearms seized from the Methuen residence. He is likely to be deported to the Dominican Republic after serving his sentence.
On April 23, 2018, Rincon-Ramirez pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute fentanyl and four counts of distribution of a controlled substance. Rincon-Ramirez was sentenced to 60 months in federal prison on August 23, 2018.
“Trafficking in fentanyl has caused great damage to the citizens of our state,” said U.S. Attorney Murray. “In order to stop the distribution of this deadly drug and protect the public, we will seek substantial prison sentences for those who profit from its sale. By working with our local, state and federal law enforcement partners to investigate, arrest and prosecute traffickers, we will improve public safety in the Granite State.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison in order to profit and destroy lives,” said DEA Special Agent in Charge Brian D. Boyle. “Illegal drug distribution ravages the very foundations of our families and communities so every time we take fentanyl off the streets, lives are saved. This investigation demonstrates the strength of collaborative local, county and state law enforcement efforts in New Hampshire.”
This matter was investigated by the DEA, with the assistance of the Massachusetts State Police, the Massachusetts Attorney General’s Office, and the police departments of Hudson, NH, Nashua, NH, and Methuen, MA. Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case. Assistant U.S. Attorney Robert Rabuck handled the asset forfeiture matter.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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District Man Pleads Guilty to Federal Firearms Offense Committed Three Months After Release from PrisonRead the Press Release
WASHINGTON – Tijuan Arrington, 41, of Washington, D.C., has pled guilty to a federal firearms charge stemming from his possession of a loaded firearm with an extended magazine, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
At the time of his arrest by MPD officers in Southeast Washington, Arrington was on federal supervised release following his release from incarceration after being sentenced in 2016 for his role in a large-scale narcotics conspiracy.
Arrington pled guilty on Oct. 29, 2018, in the U.S. District Court for the District of Columbia, to unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. He faces a statutory maximum of 10 years in prison. Under federal sentencing guidelines, he faces an estimated range of 37 to 46 months in prison. He is to be sentenced on Jan. 24, 2019 by the Honorable Rudolph Contreras.
According to the government’s evidence, on June 15, 2018, at approximately 9 p.m., MPD officers were on routine patrol in the 1300 block of Barnaby Terrace SE when they observed Arrington and other men with open containers of alcohol. When officers went to make contact with the individuals, Arrington immediately ran from the police; in the process, he dropped a loaded firearm. Arrington was detained after he was pursued running into his residence that was located up the block. In the middle of the street and in Arrington’s flight path, officers recovered a semiautomatic Glock 23 .40 caliber handgun with an extended magazine. There were 20 bullets in the magazine and one in the chamber.
At the time of his arrest, Arrington was on federal supervised release following his release from prison three months earlier for trafficking hundreds of grams of heroin. That case involved an FBI drug trafficking investigation that began in the Barnaby Terrace area and extended into Maryland. Arrington was one of 16 people to plead guilty in the investigation. He now faces formal revocation of his supervised release and additional incarceration separate and apart from the sentence that he faces for possessing the loaded firearm on June 15, 2018.
In announcing the plea, U.S. Attorney Liu and Chief Newsham commended the work of the MPD officers who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Legal Assistant Emma Atlas and Assistant U.S. Attorneys Gregory Rosen and Christopher Macchiaroli, who investigated and prosecuted the matter.
Dealer of Deadly Drugs Sentenced to 5 Years in Federal PrisonRead the Press Release
PITTSBURGH - A former resident of the McKeesport and Munhall areas of Allegheny County, Pa., has been sentenced in federal court to five years in prison and six years of supervision on his conviction of distributing drugs that caused a woman’s death, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence yesterday on 27-year-old William Harvey Scott, Jr., aka "Pac Man".
According to information presented to the court, the deceased body of a female victim was found by her family, near several empty stamp bags marked "Lizz" and a straw. The victim was determined to have four times the lethal dose of fentanyl in her system. Special Agents and Task Force Officers from the Drug Enforcement Administration searched her phone and determined that the defendant supplied the deadly drugs. Police then utilized her phone to contact the defendant for more drugs and William Harvey Scott, Jr. arrived with 10 more stamp bags marked "Lizz." Scott was arrested and his phone indicated that the deadly drugs came from his supplier, Henry Little-Proctor. An investigation of Little-Proctor was launched, resulting in a search warrant for his residence and the seizure of drugs and parts/ammunition for an assault rifle. Ultimately, Little-Proctor was sentenced to 10 years of incarceration and six years of supervised release. Both defendants were sentenced to pay $6,237.17 in restitution to the victim’s family for her funeral and other expenses.
Prior to imposing sentence, Judge Bissoon listened to a member of the victim’s family talk about what the victim was like, how the overdose incident impacted her family and what the appropriate sentence should be. Judge Bissoon stated that the defense request for no further incarceration was "insufficient" for crimes that she specifically found to be "very serious" and that there is no sentence long enough to replace what the victim meant to her family. Near the conclusion of the sentencing hearing, the Judge determined that five years in prison, followed by six years of supervision, would fulfill all of the goals of sentencing--including just punishment for the offender, stopping the defendant from future crimes and also deterring others from selling drugs in the future.
Assistant United States Attorney Ross E. Lenhardt, of the Major Crimes Section, prosecuted this case on behalf of the government.
United States Attorney Brady commended the DEA for leading the investigation resulting in the successful prosecution of Scott, and noted the important and valuable assistance of many other law enforcement agencies.
Cudahy Man Sentenced in Green Bay Federal Court on Sexual Exploitation of a Minor ChargeRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on October 29, 2018, Adam J. Westphal, also known on-line as “daddyinyouagain” (age: 41) of Cudahy, Wisconsin, was sentenced to 15 years in federal prison by Chief District Judge William C. Griesbach. Additional charges of distribution of child pornography and child enticement were dismissed as part of a plea agreement.
In March of 2018, a Winnebago County Internet Crimes Against Children (ICAC) investigator began an on-line conversation with an individual utilizing the screen name of “daddyinyouagain.” The investigator subsequently discovered that “daddyinyouagain” was, in fact, Adam J. Westphal. Westphal believed he was corresponding with a 34 year-old mother of a 14 year-old daughter who like himself possessed an interest in child pornography, when in actuality he was instant messaging the ICAC investigator. Westphal began sending the investigator numerous images and videos of child pornography while engaged in sexual conversations centered around the molestation of children. Of particular concern to law enforcement were Westphal’s repeated references to his plans and desires to sexually abuse specific minor relatives.
In early April, Westphal proposed to the investigator that he drive to Neenah, Wisconsin, to meet with the fictitious woman’s 14 year-old child for the purpose of engaging in sexual intercourse. He further proposed that they produce a video of the sexual encounter with the intent of sharing it on the internet. On April 5, 2018, Westphal arrived at the agreed upon location in Neenah and was promptly taken into custody by law enforcement.
In handing down the sentence, Chief Judge Griesbach noted the “very serious nature of the crime” and stated that the defendant’s actions “cried out for justice.” In addition to the 15 year prison sentence, he ordered Westphal to spend 15 additional years on supervised release upon his discharge from federal prison. He will also have to register as a sex offender.
This case was investigated by the Winnebago County Internet Crimes Against Children (ICAC) Task Force and the West Allis Police Department. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. 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.projectsafechildhood.gov.
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For further information contact:
Public Information Officer Dean Puschnig, (414) 297-1700
Connecticut U.S. Attorney's Office Celebrates Community Policing AwardsRead the Press Release
New Haven – The United States Attorney’s Office for the District of Connecticut hosted a Community Policing Awards Ceremony this afternoon that recognized 15 law enforcement officers and community members from cities and towns across the state.
“Today we honor the very best in community policing in Connecticut,” said U.S. Attorney John H. Durham. “These deserving law enforcement officers understand that community policing is an effective way to prevent crime, solve neighborhood problems and keep our cities and towns safe and secure. They know that it is critically important to engage with members of the community in positive, friendly and constructive ways, long before a call for service. My sincere congratulations to each of these award recipients. I thank them for their invaluable work, which continues to strengthen the communities they serve.
Below is a list of the award winners and the nominations submitted on their behalf. Photos of today’s ceremony are available on the U.S. Attorney’s Office’s Facebook page.
Clinton Police Department
Chief Vincent DeMaioChief of Police Vincent DeMaio, nominated by the Clinton Board of Police Commissioners, has implemented multiple programs geared toward improving relations with the Clinton community while operating within a budget five percent below the previous year.
The Chief reintroduced the DARE program to the elementary and middle school to rave reviews by teachers and parents. The revamped program focuses on decision-making strategies and awareness.
All Clinton officers have been trained and equipped to administer Narcan to combat opioid overdoses. To date, Narcan has been administered on 15 calls with three being life-saving.
The Child Safety Seat Installation Program is staffed by personnel trained and certified by the National Highway Traffic Safety Institute (NHTSA) in proper child safety seat installation. The program has installed 100 seats and donated 20 to those unable to afford new car seats. Our trained officers visited the Day Care Centers in Clinton and held seminars to educate the parents on proper use. This approach reached more people as it removed any fear of going to the police station. It brought officers closer to the community they live and care about and left a positive message.
Additionally, the Chief has implemented the “R.A.D. Rape & Aggression Defense” program and a redesigned K9 program. He has engaged the department in multiple social media platforms, created the Shoreline Technical Crimes Investigative Group and implemented the Lethality Assessment program.
The Clinton Police Department continuously looks for ways to educate the public on crime prevention and awareness of public safety hazards, frequently partnering with the school system and other community groups to make public service announcements or host presentations to help make the community safer. One of the more recent successes was hosting the “Chasing the Dragon” program to raise awareness of the opioid epidemic facing our State and the Nation.
Lastly, Chief DeMaio hosts a monthly radio program on ICRV radio called “SCAM PATROL” which alerts citizens to many scams, frauds and other types of cyber-crime and how to protect themselves and their identities.
Connecticut State Police
Trooper First Class Dawn TaylorTFC Taylor has approximately 13 years of service with the Connecticut State Police. She has served as a Patrol Trooper, Academy Instructor, Resident Trooper and Narcotics K9 Handler. Currently, she is the Resident Trooper in Deep River where she has an excellent reputation within the community.
TFC Taylor is involved in many events and activities in the Deep River and Troop F area. She is actively involved with Regional School District #4 (Deep River, Essex and Chester). She regularly visits the schools at bus drop-off and pick-up times and often walks the halls speaking with the students. TFC Taylor supports the DARE program, conducts K9 demonstrations, attends school events and sporting games. TFC Taylor is actively involved with many “Tri-Town” area groups to include the “Safety Awareness Committee,” “Youth & Family Coalition,” and “Juvenile Review Board.” She also teaches a “Drug Endangered Children” (DEC) class at the Academy to new police recruits.
TFC Taylor is very involved with community events, which include the annual Deep River Muster weekend and several other parades and road races. TFC Taylor’s positive and energized attitude about community policing make her “stand out” among her peers.
Connecticut State Police
Sergeant James T. ScottSergeant James Scott champions community policing efforts of the Connecticut State Police from the non-traditional role of supervisor for Recruitment and Selections. Sergeant Scott recognizes where normal recruiting suffers, and employs active recruiting efforts where building trust and community are needed.
In October 2016, noting the need and decline in diverse police applicants nationwide, Sergeant Scott actively sought to build diversity in not only CSP recruitment, but also with state and regional law enforcement. The efforts in the spirit of building trust and legitimacy between police and the communities they serve begin with creating a workforce that is diverse. In a recruitment cycle that began post-Ferguson and post-Dallas, it was expected that CSP recruitment might also follow the nationwide trend of fewer applicants, both minority and otherwise. Sergeant Scott was also facing a recruitment cycle with no budget for recruitment efforts.
Despite these obstacles, Sergeant Scott used outside the box thinking to attract the most sought after candidates. This includes his collaboration with Central Connecticut State University’s Communications Department, where students produced two recruitment videos: one highlighting the multi-dimensional aspects of the duties of the State Police (known as the Action video); and a five-member impactful testimonial video highlighting minority and female troopers, who spoke about the State Police career, both in uniform and plain clothes (known as the Impact Testimonial video). The “Action” video was released upon announcement of the test and ran for three weeks. The “Testimonial” video was released with one week remaining during the application period, specifically designed to target minority and women applicants. He also utilized social media to an extent never before used by CSP in recruitment efforts, in a calculated attempt to reach younger candidates who may not have otherwise engaged with the CSP.
While the results of this campaign were expected to be noticeably lower than previous testing cycles due to recent events and trends (Ferguson, Dallas, etc.), the final numbers recorded for the 2017 recruitment cycle surprisingly were comparable to the 2014 efforts, with a near equal number of overall candidates. More importantly, the majority of individual minority demographic groups rose exponentially, to include a rise in applicants who identified as Hispanic males; African American and Hispanic females; and Asian, Native American and Pacific Islander applicants, each specifically registering as all-time highs (DAS, 2017).
In addition, Sgt. Scott continues to assist in other CSP initiatives through the year. This includes The Albertus Magnus Criminal Justice Camp, where he has assisted with coordinating the camp since its inception. This camp has been hosted free of charge for nine consecutive years, and over 1,000 students have registered to attend. He also coordinates the annual Battle of the Badges, where he has partnered with Yale University Police Department and organized a bench press fundraiser for the last eight years. Over $5000 has been donated to Smilow Cancer Center as a result. Finally, Sgt. Scott serves in a volunteer leadership capacity for the Tunxis Community College Foundation, where in addition to serving on the board, he personally funds a criminal justice scholarship.
Connecticut State Police
Trooper Katharine CummingsTrooper Kate Cummings is at the forefront of the Connecticut State Police community policing efforts as the Statewide D.A.R.E. Coordinator. Although her title is the Statewide D.A.R.E. Coordinator for the Connecticut State Police, the role in which she has served over the course of the past year has evolved to include many aspects of the Juvenile Justice System, current adolescent trends, and the School Resource Officer Programs. The highlights in community policing that she has accomplished during the 2017-2018 School Year include:
As the Statewide D.A.R.E. Coordinator, she serves as the D.A.R.E. Instructor in communities that do not have a certified D.A.R.E. Officer, a Police Department, or a Resident Trooper Program. D.A.R.E. is a 10-week program of 45 minute sessions that cover the following topics: responsibilities, risks, consequences, peer pressure, resistance strategies, and coping skills, bullying/cyber bullying reporting, being a good citizen, and health effects of alcohol and tobacco use. She has taught 38 complete 10-week D.A.R.E. Programs during the last school year on her own. In addition to the traditional D.A.R.E. Program, Trooper Cummings sits on the Connecticut Juvenile Justice Oversight and Policy Committee as the Connecticut State Police representative. This year, the committee drafted a report for the Connecticut Legislature on ways to reduce the number of school-based arrests in the State of Connecticut. Trooper Cummings is also bilingual as she is fluent in Spanish. She is able to teach and present in schools where the students are best served by learning important skills and getting information in Spanish. This is illustrated by her presentation in Spanish at Hanover Elementary School in Meriden for their 5th Grade Career Day.
She also serves as one of the Connecticut State Police Social Media Liaisons through the Public Information Officer, and she moderates a public Instagram page, @CT_Dare_Trooper, which has nearly 6,000 followers from around the world. The page is used to connect with communities to highlight the incredible work of Connecticut's students, showcase the many roles of Connecticut State Troopers, increase our partnerships with local Police Departments and non-profit agencies, provide safety information, and most importantly, serve as a positive social media role model for adolescents. By using this medium, she connects with a younger generation in a variety of ways and demonstrates how we, as a society, can use social media in a positive, healthy way.
Over the past three years, Trooper Cummings developed internet safety and social media presentations for middle school students, high school students, college students, and a parent presentation, which covers social media trends and ways we can use social media safely and positively.
Trooper Katharine Cummings has been a significant presence and a key component of the Community Policing effort for the Connecticut State Police. Her interpersonal talent and bilingual ability gives her the skills to connect with children, teens and adults no matter the venue or issue. She has provided a template for a multitude of law enforcement officers throughout the State of Connecticut by virtue of her willingness to connect with people no matter who they are and what their needs may be.
East Hartford Police Department
Lieutenant Joshua LitwinLieutenant Josh Litwin has worked with the East Hartford Police Department since 2002 and has served as a Firearms Instructor, Field Training Officer and as an Investigator in the Detective Division. In his current assignment as the Chief Executive Officer, Lieutenant Litwin has been instrumental in reviving the Community Service Officer program. In this capacity, Lieutenant Litwin has hosted many community outreach events such as Block Watch Meetings, Toy Drives, and Sandwich with a Cop and Coffee with a Cop events. He has also been the driving force behind the East Hartford Police Department’s involvement in the National Night Out event. National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, more caring places to live. National Night Out enhances the relationship between neighbors and law enforcement while bringing back a true sense of community. Furthermore, it provides a great opportunity to bring police and neighbors together under positive circumstances. Over the last two years, this event has brought hundreds of families throughout the community to the police department to share stories, see demonstrations and have a fun family night out.
Lieutenant Litwin has also participated in a variety of other programs that reach out to local religious and faith based organizations, and he helps to organize and present at the Department’s Citizen Police Academy. Lieutenant Litwin’s tireless dedication to these community based programs is evident and he continues to look for new ways each year for his Department to create a partnership and improve the quality of life for the community he serves.
Enfield Police Department
Officer Eddie G. NunoOfficer Eddie Nuno is a 25-year veteran of the Enfield Police Department. (He undertook service with this agency after a period of service with the United States Coast Guard.) Over the course of his Enfield Police Department career, Officer Nuno has worked in a variety of capacities, but apparent throughout his tenure has been a true dedication to the concept of community policing.
Officer Nuno serves as the Enfield Police Department’s representative to the town’s Juvenile Review Board, and also serves as the department’s liaison to the Enfield Youth Services Agency. It is fair to say that he uses his bilingual language skills to serve as the department’s liaison to the town’s Hispanic community. He is well known, particularly in the Thompsonville section of town, for his regular community interactions, stopping to visit with community youth, joining assorted sports games while they are “in progress,” meeting with landlord associations, and helping businesses do everything possible to succeed. Enfield is also very fortunate in that Officer Nuno serves as a Field Training Officer, placing him in a position to pass on the skills and positive mindset that he possesses to the next generation of Enfield Police Officers.
Officer Nuno is among the most conscientious and committed of officers. His ability to maintain this demeanor after 25 years of service is indicative of just how deeply he believes in the policing mission.
Town of Groton Department
Officer Richard SavinoOfficer Richard Savino is assigned as the Town of Groton Community Policing Officer (CPO) in which position he has been organizing and participating in multiple community events since his appointment. These efforts have not only raised money for charitable causes, but have bridged the gap between law enforcement and the community he serves and protects. Officer Savino has been an organizer, participant and supporter in all of the following events, prior to and during his official assignment as the CPO:
“Cop on Top,” where officers spent the night on top of a local car dealership in freezing cold temperatures to raise money for Special Olympics; “Law Enforcement Torch Run,” where officers from around the region run for miles in their communities with the Special Olympics Torch, raising money and awareness for Special Olympics; “Penguin Plunge,” where officers and members of the community dive into freezing ocean waters raising money and awareness for the Special Olympics; “Tip a Cop,” where officers wait on tables at a local restaurant raising money and awareness for Special Olympics; “Coffee With a Cop,” where law enforcement officers visit a local coffee shop encouraging community members to join them in conversation over a cup of coffee; “Bumpers ‘N Books,” where law enforcement and local residents decorate the trunks and bumpers of their vehicles in various popular children’s book themes; bringing the community together while encouraging children to read and visit their local library; “MADD Car Show” where multiple classic car owners display their vehicles while supporting those who have been impacted by drunk or drugged driving, and “National Night Out” where multiple local businesses, restaurants, law enforcement agencies, emergency medical personnel and health care related organizations gather with the community, eating food, playing games and participating in various events.
The initiatives undertaken by Officer Savino are great examples of what constitutes effective community policing.
In addition to the community policing programs, Officer Savino meets with victims of domestic violence in the community, diligently following up on their cases and assuring that they are getting all of the assistance they need. Officer Savino has been working with local businesses and residents in dealing with noise complaint issues; understanding the needs and concerns of all parties involved.
Officer Savino is an example to all and a true leader in his community.
New Canaan Police Department
Officer Ron BentleyOfficer Ron Bentley has been a member of the New Canaan Police Department since 2005.
Following a brazen daytime violent robbery of a local jewelry store, the New Canaan business community was terrified that this type of crime might happen again. It was at that time, the New Canaan Police Department decided to create the position of Community Impact Officer. Officer Bentley was appointed to that position and is responsible for the New Canaan business district. He has built strong relationships with business owners and residents, and has created a sense of safety and community in the center of town.
Officer Bentley helped implement “Coffee with a Cop” to further foster positive relationships between police officers and the community. He has helped to deter criminal activity, and overall has made the center of New Canaan a safer place to visit.
In addition to his work downtown, Officer Bentley has worked with the town’s youth through his role as baseball coach for the New Canaan High School Varsity Baseball Team and was a previous School Resource Officer at New Canaan High School.
New London Police Department
Sergeant Max BertschSergeant Max Bertsch has been with the New London Police Department since January 2006. He has been assigned to the Patrol Division, the School Resource Officer Program and is a certified motorcycle officer. Sergeant Bertsch is currently assigned to the Patrol Division as a Street Sergeant.
Sergeant Bertsch has organized the National Night Out program for the New London Police Department for the past eight years. This event links police and elementary school youth together in a fun atmosphere at Ocean Beach Park. Each year the number of children attending and parents has increased, with over 500 in attendance this past August. Sgt. Bertsch also served as the School Resource officer in New London prior to being promoted. His devotion to the youth of the city has found him on numerous fishing trips with school-aged children on his own time. As the SRO, he organized a school based program for high school aged children, similar to a citizens police academy, which continues to today. His efforts with the New London Schools has resulted in great strides being made in connecting youth to police and furthering the goals of Community Based Policing.
Norwalk Police Department
Officer Jean-Maxime SixtoBorn in Haiti, Jean-Maxime Sixto (“Max”) and his family moved to the United States in 1971, making a home in Norwalk. He, like many other young adults from Norwalk, worked at Stew Leonard’s. This is where Max honed his gift of conversation. The Norwalk Police Department hired Max Sixto in January of 1997 and, in 1999, he was assigned to the Community Police Unit. Officers in the unit worked out of the South Norwalk Train Station, patrolling and conducting outreach to specific areas of South Norwalk.
Officer Sixto was assigned to the Roodner Court Housing Complex. At the time, Roodner Court was plagued with drug trafficking and violent crime. The close relationships Max formed with many members of the Roodner Court community were invaluable in combating such crime. That is, many individuals living in Roodner Court had enough trust in Max that they were willing to share information about the rampant crime occurring in their community allowing the police to bring many of the offenders to justice. The positive effect of Officer Sixto’s constant presence in Roodner Court and his incredibly warm personality were apparent the minute he entered the Housing Complex, whether by bicycle or on foot. Today, Max cannot step foot in Roodner Court without a resident yelling, “Hey Sixto,” followed by a high-five or a hug.
In addition, Officer Sixto has worked with members of the Roodner Court community to beautify the complex with bright flower plantings. This had a ripple effect within the complex, with residents pitching in to clean up and to even create two vegetable gardens within the complex. Officer Sixto also spends a lot of time at the Roodner Court Learning Center, which provides afterschool education opportunities for the youth in Roodner Court. Officer Sixto reads to the kids and is a positive role model for them. He also spends time with the kids at Grass Roots Tennis and meets with the junior counselors to discuss leadership issues. Officer Sixto recently noticed that a young resident of Roodner Court did not have a bicycle, and so he arranged to bring a donated bicycle to the little girl, bringing smiles to her face and to that of her grandmother.
In addition to his duties in Roodner Court, Officer Sixto is often called up to assist with other community outreach events such as Coffee with a Cop, NPD Ice Cream Day, Community Police Holiday Party, SoNo Alliance, Norwalk Open House and many more.
Max is a decorated officer receiving numerous awards and recognitions from not only the Norwalk Police Department, but from the Federal Bureau of Investigation and the United States Attorney’s Office. Officer Sixto has received numerous letters of appreciation from community members as well as recognition for Community Service from the Seventh Day Adventist Church.
Officer Max Sixto is the definition of a Community Police Officer. His hard work and dedication to the community are second to none. He has spent his career working hard to make Norwalk a safer place while creating police-community partnerships.
Stamford Police Department
Officer Silas ReddOfficer Silas Redd has over 30 years’ experience with the Stamford Police Department and his commitment to the City of Stamford has never wavered. Over the past 30 years, Officer Redd has helped the police department create and sustain a strong relationship with the community. This is what we now call “Community Policing.” Officer Redd has always taken the initiative to foster those relationships long before it became a catch phrase. It is who he is!
Officer Redd is currently assigned to the Stamford Police Department’s Youth Bureau where he coordinates the Truancy Initiative Program. He is also a founding member of the Juvenile Review Board, a member of the Absentee Review Board, a founding member of the Community Oriented Policing Program, and a founding member of the Stamford Police Boys Leadership Group. Officer Redd also conducts mediations between troubled youths and families. Officer Redd even takes it a step further and works diligently to assist those youth and families in seeking services that will have a positive influence with the families.
Officer Redd is an advocate for cultivating strong lines of communication between the community and police by working closely with and meeting with community leaders. This is achieved through forums at churches, schools and community events. Officer Redd has built lasting friendships and partnerships within the community that enable him to remedy and effectively address a host of issues. Moreover, Officer Redd has been very instrumental in mentoring youth and stressing the importance of education, being a positive influence and making good choices. Officer Redd also spends a great deal of time educating other Stamford officers as to what the community wants and expects from the police.
Officer Redd has demonstrated an unrivaled passion in educating youth and guiding them in the right direction. He continues to be an asset for the department, but more importantly the community. Officer Redd is a credit to the Stamford Police Department and his commitment to Stamford should be emulated by all.
University of Connecticut Police Department
Officer Justin CheneyOfficer Justin Cheney joined the University of Connecticut Police Department in June of 2015 and immediately began a focus on community oriented policing work. A long-standing member of the community and alumnus of UConn, Justin quickly became a friendly and recognizable member of the patrol operations section and exemplified the best tenets of community partnership and problem solving. In 2016, he became a member of the UConn PD Safety Techniques and Awareness Resource Team, the unit of officers that provide educational programming and events across the community. As a member of the S.T.A.R.T., he provides ongoing instruction and facilitation to the UConn and surrounding community in the areas of self-defense, general safety, primary prevention education to reduce sexual violence, team building and communication workshops, and more. In the summer of 2017, Justin joined the Community Outreach Unit to engage in community education on a full-time basis.
Justin’s enthusiasm and innovative approach to community policing strategies helped him to propose a dynamic new program in the spring of 2018. After considerable research in the area, he launched the UCPD Community Outreach Dog program. With the generous support and assistance of Canine Companions for Independence, Justin was partnered with Tildy, a facility dog. Tildy, a two-year-old yellow lab and golden retriever mix, was trained by CCI as a facility dog and Justin was matched and trained with her at CCl’s Northeast Training Center in April of 2018.
Tildy and Justin now spend their days engaging with the community in person and through Tildy’s increasingly popular lnstagram page where Justin has masterfully captured Tildy’s “voice” as a means to connect with people. Justin and Tildy act as the police department’s outreach ambassadors and have promoted creative new ways to build bridges to the community. Tildy can also act in a limited supportive role to victims of violent crime if her skills would assist in building comfort with the investigative process for the community. Officer Cheney and Tildy are on lnstagram (uconnpd_officertildy) and have over 900 followers. Tildy is absolutely adorable and a hit with our community. (They like Justin too!)
On a daily basis, Officer Justin Cheney has been an example of the best community oriented policing strategies in our profession and his innovative approach to the Community Outreach Dog program has opened doors in an unprecedented way.
University of New Haven Police Department
Sergeant Luis Dos SantosSince joining the University of New Haven Police Department, after a long career at Western Connecticut State University, Sergeant Luis Dos Santos has become an integral part of the University community. He has shown leadership and initiative in handling traditional police duties and excelled in community outreach. He regularly volunteers to spearhead new outreach initiatives. The UNHPD’s primary community policing vehicle is its Residence Hall Officer (RHO) program. Each officer is assigned as a liaison to a Residence Hall, provides regular interaction with the students and staff, provides support to residence assistants, follows up on police incidents and provides educational programs for residents. Sgt. Dos Santos regularly attends Hall staff meetings, provides educational programs to residents such as “Think before you Drink” and proper behavior at off campus parties. He assists other officers in presenting career development programs to our public safety discipline students, who are a significant proportion of the student body. He also assists officers in presenting student safety and self-defense programs. Some of the outreach programs that he has personally initiated or spearheaded are:
“Drunk Sundaes,” where students don “drunk goggles” and operate a controlled golf cart ride to truly appreciate how impaired driving can affect one’s judgement; “ARC Dream Orientation” for special needs students, and “Do NUT Drink and Drive,” a Public Safety Block Party to kick off National Campus Safety Month.
As a supervisor, Sgt. Dos Santos, provides guidance and assistance to other officers with community outreach programs. As both a supervisor and officer, he diligently follows up on all incidents within his areas of responsibility. His interventions and educational talks have mitigated many small problems before they became major issues. His reputation for thoroughness and commitment to the community is well known throughout the University and the city of West Haven.
In short, Sgt. Dos Santos has become an overall role model and mentor for the University’s student population.
Waterbury Police Department
Sergeant Ryan Bessette
Lisa VelezSergeant Ryan Bessette serves as Officer in Charge of the Community Relations Division at the Waterbury Police Department. This division encompasses various agencies including the Neighborhood Police Officers, Mounted Unit Officers, Police Activities League (PAL) and a civilian Blight Control Team. This collaborative approach focuses on reaching out to 23 active neighborhood associations, addressing quality of life-related issues, building and fostering relationships with the community and providing mentorship/positive programs for Waterbury youths. Sergeant Bessette works tirelessly with a team of dedicated officers and civilian personnel to serve the needs of the community and educate residents, all while preventing and solving crimes.
Lisa Velez, President of the Brooklyn Neighborhood Association, has also served as President of the Waterbury Neighborhood Council, which consists of various active neighborhood associations. She has created a dedicated working relationship with Sergeant Bessette and the entire Community Relations Division. Lisa has been a longtime advocate of community oriented policing and served to facilitate community engagement. Importantly, she continues to help strengthen the relationship between the Neighborhood Council and the Waterbury Police Department.
Computer Sciences Corporation Agrees to Pay $389,355 to Resolve False Claims Act Allegations in Connection with Hanford Site Electronic Medical Records SystemRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Computer Sciences Corporation (CSC), a government contractor headquartered in Falls Church, Virginia, has agreed to pay $389,355 to resolve allegations that its predecessor corporation violated the False Claims Act in connection with its implementation of an electronic medical records system intended for use at the Department of Energy’s (DOE) Hanford Site. Between 2005 and 2012, CSC held a DOE prime contract to provide occupational health services for Hanford Site workers. As part of that contract, CSC was required to implement an electronic medical records system for the medical records of Hanford Site workers. In 2015, after the CSC prime contract was completed, CSC merged its government contracts business with another company, SRA International, to form CSRA, Inc.
The United States alleged that CSC submitted false claims and statements to DOE representing that the electronic medical records system was functional and would operate as intended and in accordance with contractual and DOE requirements.
United States Attorney Harrington said, “Hanford Site workers perform a vitally important mission through which they risk exposure to radioactive and hazardous materials. It is critical that accurate health records be maintained concerning these workers. This settlement underscores our determination to utilize all tools at our disposal to ensure that public funds are efficiently spent in a manner that best serves workers, the public, and the environment. I commend the outstanding work of the Department of Energy Office of Inspector General, which made this resolution possible.”
“The health and well-being of Hanford Site workers is paramount to the U.S. Department of Energy’s mission,” said Acting Inspector General April G. Stephenson. “The Office of Inspector General is committed to investigating allegations of misconduct that, if true, could place those workers at risk. Because of the hazardous environment in which these workers conduct Department operations, it is vital that proper health records are maintained. We will continue to work aggressively with our investigative partners to pursue those who do not fulfill their contractual obligations and attempt to provide false information to the government.”
The allegations resolved by this settlement were initially brought in a whistleblower lawsuit filed by two former CSC employees, Kirtley Clem and Matthew Spencer. The case is captioned United States ex rel. Clem et al. v. Computer Sciences Corporation, 16-cv-5160-LRS (E.D. Wash.) Under the False Claims Act, private citizens can sue on behalf of the United States, and share in any recovery. Mr. Clem and Mr. Spencer will receive $81,764 of the settlement.
Assistant United States Attorney Dan Fruchter negotiated the settlement, which was the result of a joint investigation conducted with the Department of Energy Office of Inspector General. The claims resolved by this settlement are allegations only, and there has been no admission of liability.
Chinese Intelligence Officers and Their Recruited Hackers and Insiders Conspired to Steal Sensitive Commercial Aviation and Technological Data for YearsRead the Press Release
Chinese intelligence officers and those working under their direction, which included hackers and co-opted company insiders, conducted or otherwise enabled repeated intrusions into private companies’ computer systems in the United States and abroad for over five years. The conspirators’ ultimate goal was to steal, among other data, intellectual property and confidential business information, including information related to a turbofan engine used in commercial airliners.
The charged intelligence officers, Zha Rong and Chai Meng, and other co-conspirators, worked for the Jiangsu Province Ministry of State Security (“JSSD”), headquartered in Nanjing, which is a provincial foreign intelligence arm of the People’s Republic of China’s Ministry of State Security (“MSS”). The MSS, and by extension the JSSD, is primarily responsible for domestic counter-intelligence, non-military foreign intelligence, and aspects of political and domestic security.
From at least January 2010 to May 2015, JSSD intelligence officers and their team of hackers, including Zhang Zhang-Gui, Liu Chunliang, Gao Hong Kun, Zhuang Xiaowei, and Ma Zhiqi, focused on the theft of technology underlying a turbofan engine used in U.S. and European commercial airliners. This engine was being developed through a partnership between a French aerospace manufacturer with an office in Suzhou, Jiangsu province, China, and a company based in the United States. Members of the conspiracy, assisted and enabled by JSSD-recruited insiders Gu Gen and Tian Xi, hacked the French aerospace manufacturer. The hackers also conducted intrusions into other companies that manufactured parts for the turbofan jet engine, including aerospace companies based in Arizona, Massachusetts and Oregon. At the time of the intrusions, a Chinese state-owned aerospace company was working to develop a comparable engine for use in commercial aircraft manufactured in China and elsewhere.
Defendant Zhang Zhang-Gui is also charged, along with Chinese national Li Xiao, in a separate hacking conspiracy, which asserts that Zhang Zhang-Gui and Li Xiao leveraged the JSSD-directed conspiracy’s intrusions, including the hack of a San Diego-based technology company, for their own criminal ends.
“For the third time since only September, the National Security Division, with its US Attorney partners, has brought charges against Chinese intelligence officers from the JSSD and those working at their direction and control for stealing American intellectual property,” said John C. Demers, Assistant Attorney General for National Security. “This is just the beginning. Together with our federal partners, we will redouble our efforts to safeguard America’s ingenuity and investment.”
“State-sponsored hacking is a direct threat to our national security. This action is yet another example of criminal efforts by the MSS to facilitate the theft of private data for China’s commercial gain,” said U.S. Attorney Adam Braverman. “The concerted effort to steal, rather than simply purchase, commercially available products should offend every company that invests talent, energy, and shareholder money into the development of products.”
“The threat posed by Chinese government-sponsored hacking activity is real and relentless,” said John Brown, FBI Special Agent in Charge of the San Diego Field Office. “Today, the Federal Bureau of Investigation, with the assistance of our private sector, international and U.S. government partners, is sending a strong message to the Chinese government and other foreign governments involved in hacking activities. We are working together to vigorously investigate and hold hackers accountable regardless of their attempts to hide their illicit activities and identities.”
On October 10, the Department of Justice announced that a JSSD intelligence officer was extradited to the Southern District of Ohio, on charges that he attempted to steal trade secrets related to jet aircraft engines, and in September, in the Northern District of Illinois, a U.S. Army recruit was charged with working as an agent of a JSSD intelligence officer, without notification to the Attorney General.
As the indictment in the Southern District of California describes in detail, China’s JSSD intelligence officers and hackers working at their direction masterminded a series of intrusions in order to facilitate intrusions and steal non-public commercial and other data. The hackers used a range of techniques, including spear phishing, sowing multiple different strains of malware into company computer systems, using the victim companies’ own websites as “watering holes” to compromise website visitors’ computers, and domain hijacking through the compromise of domain registrars.
The first alleged hack began no later January 8, 2010, when members of the conspiracy infiltrated Capstone Turbine, a Los-Angeles-based gas turbine manufacturer, in order to steal data and use the Capstone Turbine website as a “watering hole.”
China’s intelligence service also sought, repeatedly, to hack into a San Diego-based technology company from at least August 7, 2012 through January 15, 2014, in order to similarly steal commercial information and use its website as a “watering hole.”
Chinese actors used not only hacking methods to conduct computer intrusions and steal commercial information, they also coopted victim company employees. From at least November 2013 through February 2014, two Chinese nationals working at the direction of the JSSD, Tian Xi and Gu Gen, were employed in the French aerospace company’s Suzhou office. On January 25, 2014, after receiving malware from an identified JSSD officer acting as his handler, Tian infected one of the French company’s computers with malware at the JSSD officer’s direction. One month later, on February 26, 2014, Gu, the French company’s head of Information Technology and Security in Suzhou, warned the conspirators when foreign law enforcement notified the company of the existence of malware on company systems. That same day, leveraging that tip-off, conspirators Chai Meng and Liu Chunliang tried to minimize JSSD’s exposure by causing the deletion of the domain linking the malware to an account controlled by members of the conspiracy.
The group’s hacking attempts continued through at least May of 2015, when an Oregon-based company, which, like many of the other targeted companies, built parts for the turbofan jet engine used in commercial airliners, identified and removed the conspiracy’s malware from its computer systems.
Count Two of the indictment charges a separate conspiracy to hack computers in which Zhang Zhang-Gui, a defendant charged in Count One, supplied his co-defendant and friend, Li Xiao, with variants of the malware that had been developed and deployed by hackers working at the direction of the JSSD on the hack into Capstone Turbine. Using malware supplied by Zhang, as well as other malware, Li launched repeated intrusions that targeted a San Diego-based computer technology company for more than a year and a half. These intrusions caused thousands of dollars of damage to protected computers.
Count Three of the indictment charges Zhang Zhang-Gui with the substantive offense of computer hacking a San Diego technology company, which was one of the targets of the conspiracies alleged in Counts One and Two.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The FBI, led by the San Diego Field Office, conducted the investigation that resulted in charges announced today. This case is being prosecuted by Alexandra Foster and Sabrina Fève of the United States Attorney’s Office for the Southern District of California and Jason McCullough of the National Security Division’s Counterintelligence and Export Control Section. The Criminal Division’s Office of International Affairs also provided assistance in this matter, and the Department appreciates the cooperation and assistance provided by France’s General Directorate for Internal Security (DGSI) and the Cybercrime Section of the Paris Prosecutor’s Office during the investigation of this matter.
Case Number: 13CR3132-H
Chinese Intelligence Officers and Their Recruited Hackers and Insiders Conspired to Steal Sensitive Commercial Aviation and Technological Data for YearsRead the Press Release
FOR IMMEDIATE RELEASE
TUESDAY, OCTOBER 30, 2018
WWW.JUSTICE.GOV
Chinese Intelligence Officers and Their Recruited Hackers and Insiders Conspired to Steal Sensitive Commercial Aviation and Technological Data for Years
Chinese intelligence officers and those working under their direction, which included hackers and co-opted company insiders, conducted or otherwise enabled repeated intrusions into private companies’ computer systems in the United States and abroad for over five years. The conspirators’ ultimate goal was to steal, among other data, intellectual property and confidential business information, including information related to a turbofan engine used in commercial airliners.
The charged intelligence officers, Zha Rong and Chai Meng, and other co-conspirators, worked for the Jiangsu Province Ministry of State Security (“JSSD”), headquartered in Nanjing, which is a provincial foreign intelligence arm of the People’s Republic of China’s Ministry of State Security (“MSS”). The MSS, and by extension the JSSD, is primarily responsible for domestic counter-intelligence, non-military foreign intelligence, and aspects of political and domestic security.
From at least January 2010 to May 2015, JSSD intelligence officers and their team of hackers, including Zhang Zhang-Gui, Liu Chunliang, Gao Hong Kun, Zhuang Xiaowei, and Ma Zhiqi, focused on the theft of technology underlying a turbofan engine used in U.S. and European commercial airliners. This engine was being developed through a partnership between a French aerospace manufacturer with an office in Suzhou, Jiangsu province, China, and a company based in the United States. Members of the conspiracy, assisted and enabled by JSSD-recruited insiders Gu Gen and Tian Xi, hacked the French aerospace manufacturer. The hackers also conducted intrusions into other companies that manufactured parts for the turbofan jet engine, including aerospace companies based in Arizona, Massachusetts and Oregon. At the time of the intrusions, a Chinese state-owned aerospace company was working to develop a comparable engine for use in commercial aircraft manufactured in China and elsewhere.
Defendant Zhang Zhang-Gui is also charged, along with Chinese national Li Xiao, in a separate hacking conspiracy, which asserts that Zhang Zhang-Gui and Li Xiao leveraged the JSSD-directed conspiracy’s intrusions, including the hack of a San Diego-based technology company, for their own criminal ends.
“For the third time since only September, the National Security Division, with its US Attorney partners, has brought charges against Chinese intelligence officers from the JSSD and those working at their direction and control for stealing American intellectual property,” said John C. Demers, Assistant Attorney General for National Security. “This is just the beginning. Together with our federal partners, we will redouble our efforts to safeguard America’s ingenuity and investment.”
“State-sponsored hacking is a direct threat to our national security. This action is yet another example of criminal efforts by the MSS to facilitate the theft of private data for China’s commercial gain,” said U.S. Attorney Adam Braverman. “The concerted effort to steal, rather than simply purchase, commercially available products should offend every company that invests talent, energy, and shareholder money into the development of products.”
“The threat posed by Chinese government-sponsored hacking activity is real and relentless,” said John Brown, FBI Special Agent in Charge of the San Diego Field Office. “Today, the Federal Bureau of Investigation, with the assistance of our private sector, international and U.S. government partners, is sending a strong message to the Chinese government and other foreign governments involved in hacking activities. We are working together to vigorously investigate and hold hackers accountable regardless of their attempts to hide their illicit activities and identities.”
On October 10, the Department of Justice announced that a JSSD intelligence officer was extradited to the Southern District of Ohio, on charges that he attempted to steal trade secrets related to jet aircraft engines, and in September, in the Northern District of Illinois, a grand jury indicted a U.S. Army recruit who is accused of working as an agent of a JSSD intelligence officer, without notification to the Attorney General.
As the indictment in the Southern District of California describes in detail, China’s JSSD intelligence officers and hackers working at their direction masterminded a series of intrusions in order to facilitate intrusions and steal non-public commercial and other data. The hackers used a range of techniques, including spear phishing, sowing multiple different strains of malware into company computer systems, using the victim companies’ own websites as “watering holes” to compromise website visitors’ computers, and domain hijacking through the compromise of domain registrars.
The first alleged hack began no later January 8, 2010, when members of the conspiracy infiltrated Capstone Turbine, a Los-Angeles-based gas turbine manufacturer, in order to steal data and use the Capstone Turbine website as a “watering hole.”
China’s intelligence service also sought, repeatedly, to hack into a San Diego-based technology company from at least August 7, 2012 through January 15, 2014, in order to similarly steal commercial information and use its website as a “watering hole.”
Chinese actors used not only hacking methods to conduct computer intrusions and steal commercial information, they also coopted victim company employees. From at least November 2013 through February 2014, two Chinese nationals working at the direction of the JSSD, Tian Xi and Gu Gen, were employed in the French aerospace company’s Suzhou office. On January 25, 2014, after receiving malware from an identified JSSD officer acting as his handler, Tian infected one of the French company’s computers with malware at the JSSD officer’s direction. One month later, on February 26, 2014, Gu, the French company’s head of Information Technology and Security in Suzhou, warned the conspirators when foreign law enforcement notified the company of the existence of malware on company systems. That same day, leveraging that tip-off, conspirators Chai Meng and Liu Chunliang tried to minimize JSSD’s exposure by causing the deletion of the domain linking the malware to an account controlled by members of the conspiracy.
The group’s hacking attempts continued through at least May of 2015, when an Oregon-based company, which, like many of the other targeted companies, built parts for the turbofan jet engine used in commercial airliners, identified and removed the conspiracy’s malware from its computer systems.
Count Two of the indictment charges a separate conspiracy to hack computers in which Zhang Zhang-Gui, a defendant charged in Count One, supplied his co-defendant and friend, Li Xiao, with variants of the malware that had been developed and deployed by hackers working at the direction of the JSSD on the hack into Capstone Turbine. Using malware supplied by Zhang, as well as other malware, Li launched repeated intrusions that targeted a San Diego-based computer technology company for more than a year and a half. These intrusions caused thousands of dollars of damage to protected computers.
Count Three of the indictment charges Zhang Zhang-Gui with the substantive offense of computer hacking a San Diego technology company, which was one of the targets of the conspiracies alleged in Counts One and Two.
***
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The FBI, led by the San Diego Field Office, conducted the investigation that resulted in charges announced today. This case is being prosecuted by Alexandra Foster and Sabrina Fève of the United States Attorney’s Office for the Southern District of California and Jason McCullough of the National Security Division’s Counterintelligence and Export Control Section. The Criminal Division’s Office of International Affairs also provided assistance in this matter, and the Department appreciates the cooperation and assistance provided by France’s General Directorate for Internal Security (DGSI) and the Cybercrime Section of the Paris Prosecutor’s Office during the investigation of this matter.
# # #
13CR3132-H
Charleston Man Sentenced for Gun CrimeRead the Press Release
CHARLESTON, W.VA. – United States Attorney Mike Stuart announced that Labaron Bulley, 32, of Charleston, was sentenced today by United States District Court Judge John T. Copenhaver, Jr., to 33 months in prison for being a felon in possession of a firearm. Stuart credited the collaborative investigative efforts of the Charleston Police Department and the Bureau of Alcohol, Tobacco and Firearms (ATF) with the successful prosecution of Bulley.
“We are laser focused on reducing violent crime on Charleston’s west side,” said United States Attorney Mike Stuart. “Getting guys like Bulley off the streets of Charleston can only help make the city safer.”
Bulley previously pled guilty in July admitting to possessing a firearm on March 15 of this year at his girlfriend’s west side residence. At the time he possessed the firearm, Bulley admitted that he had been convicted in 2014 in West Virginia of the felony offense of attempting to commit a felony.
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. 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.
SDWVNews and USAttyStuart
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Businessman Indicted for Conspiring to Bribe Senior Government Officials of the Republic of HaitiRead the Press Release
A businessman was charged in a superseding indictment filed today for his alleged participation in a scheme to bribe senior government officials of the Republic of Haiti in connection with a planned $84 million port development project, and to launder funds in order to promote the bribery. An alleged co-conspirator was previously charged in the original indictment.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling of the District of Massachusetts, Assistant Director Christopher Hacker of the FBI’s Criminal Investigative Division and Special Agent in Charge Harold M. Shaw of the FBI’s Boston Field Office made the announcement.
Roger Richard Boncy, 74, a dual U.S. and Haitian citizen who resides in Madrid, Spain, was charged in a superseding indictment filed in the District of Massachusetts with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and the Travel Act, one count of violating the Travel Act and one count of conspiracy to commit money laundering. The superseding indictment also charges Boncy’s co-conspirator, Joseph Baptiste, DDS, 66, of Fulton, Maryland, with the same crimes. Baptiste was originally charged by indictment in this case in October 2017. Baptiste’s trial is scheduled to begin on Dec. 3, in the District of Massachusetts in Boston.
The superseding indictment alleges that Boncy and Baptiste solicited bribes from undercover agents posing as potential investors in connection with a proposed project to develop a port in the Mȏle St. Nicolas area of Haiti. The proposed project was expected to cost approximately $84 million and was to involve the construction of multiple cement factories, a shipping-vessel recycling station, an international transshipment station with numerous slips for shipping vessels, a power plant, a petroleum depot and tourist facilities.
During a recorded meeting at a Boston-area hotel, Boncy and Baptiste allegedly told the agents that, in order to secure Haitian government approval of the project, they would funnel the payments to Haitian officials through a non-profit entity that Baptiste controlled, which was based in Maryland and purported to help impoverished residents of Haiti. In intercepted telephone calls, Boncy and Baptiste also allegedly discussed bribing an aide to a high-level elected official in Haiti with a job on the port development project, in exchange for the aide’s help in obtaining the elected official’s authorization for the project.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Boston Field Office and International Corruption Unit investigated the case. Trial Attorney Elina A. Rubin-Smith of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kriss Basil of the District of Massachusetts are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Baldwin County Kingpin Sentenced to 145 Years in Federal Prison Without Parole, Fourteen Others SentencedRead the Press Release
MACON: United States Attorney for the Middle District of Georgia, Charles E. Peeler, announces that DELMA GODDARD, A/K/A “SHUG” AND “BIG HXMIE” age 38, of Milledgeville, Georgia, was sentenced by U.S. District Court Judge Marc T. Treadwell to serve 145 years in federal prison in Macon today. There is no parole in the federal system.
Mr. Goddard was found guilty by a jury of his peers of Conspiracy to Possess with Intent to Distribute more than 280 Grams of Crack Cocaine, more than 50 Grams of Methamphetamine, and more than 100 Grams of Heroin on July 30, 2018. The jury also convicted Mr. Goddard of four counts of Distribution of Methamphetamine; six counts of Distribution of Crack Cocaine; five counts of Possession of a Firearm by a Convicted Felon; five counts of Possessing a Firearm in Furtherance of a Drug Trafficking Crime; one count of Distribution of Heroin; and one count of Possession with Intent to Distribute Heroin.
Mr. Goddard was the lead conspirator and is a member of the Nine-Deuce gang in Baldwin County. The Nine-Deuce gang is affiliated with the Bloods national street gang. During the period between 2013 and 2016, the Nine-Deuce gang was responsible for numerous gang-related assaults in Baldwin County, Georgia. The gang is identified by its use of the color red, as well as particular hand signs, and it is fueled by proceeds from the sale of illegal drugs in Milledgeville and the surrounding counties. Mr. Goddard was responsible for obtaining, manufacturing and distributing crack cocaine, and also for distributing methamphetamine and heroin.
As part of the investigation, agents from the DEA, FBI, ATF and Ocmulgee Drug Task Force were responsible for removing more than 10 ounces of crack cocaine, more than 10 ounces of methamphetamine, and more than 10 ounces of heroin from the streets of Milledgeville. In addition, 17 firearms, including two assault rifles, were purchased from Mr. Goddard and/or seized during a search warrant executed at his residence.
Evidence established during the trial proved that Mr. Goddard sold various quantities of crack cocaine, methamphetamine and heroin to government operatives. Mr. Goddard has a prior conviction for the Sale of Cocaine in 2000.
For their part in this case, fourteen other individuals, several of whom were Nine-Deuce gang members, were also sentenced:
- CHAD DELACY FREEMAN, A/K/A “BIG BONE” AND “BONE LOCO” (gang member), age 45, of Milledgeville, Georgia, was sentenced to 188 months in federal prison.
- ALONZO BUTTS, age 44, of Augusta, Georgia, was sentenced to 120 months in federal prison.
- DEMALE HAMPTON, A/K/A “RABBIT” AND “RAB”, age 41, of Milledgeville, Georgia, was sentenced to 70 months in federal prison.
- EDWARD ANTONIO BROWN, A/K/A “PLUG” (gang member), age 41, of Milledgeville, Georgia, was sentenced to 48 months in federal prison.
- ISHMAWIYL ABDHAL DAVIS, A/K/A “NY” AND “NEW YORK” (gang member), age 35, of Milledgeville, Georgia, was sentenced to 48 months in federal prison.
- DEMETRIUS JAMEL HARDEN, A/K/A “MEAT DAWG” & “MEAT DOG” (gang member), age 32, of Milledgeville, Georgia, was sentenced to 46 months in federal prison.
- MONTAVIOUS JERMELL BARNES, A/K/A “COOT” AND “KOOT” (gang member), age 23, of Milledgeville, Georgia, was sentenced to 46 months in federal prison.
- TRAVIS GLENN, A/K/A “T” AND “TG” (gang member), age 41, of Milledgeville, Georgia, was sentenced to 40 months in federal prison.
- DEMOND MONTERIO DENNIS, A/K/A “DOUBLE DEUCE” (gang member), age 34, of Milledgeville, Georgia, was sentenced to 38 months in federal prison.
- DERRICK MOSLEY, A/K/A “D MO” (gang member), age 38, of Milledgeville, Georgia, was sentenced to 36 months in federal prison.
- DESHAWN RANSOM, A/K/A “NEPHEW” (gang member), age 23, of Milledgeville, Georgia, was sentenced to 30 months in federal prison.
- ERIC DEMETRIUS VEAL, age 46, of Milledgeville, Georgia, was sentenced to 24 months in federal prison.
- JEVON DESHAWN CLARK, A/K/A “DUB” AND “J DUB” (gang member), age 35, of Milledgeville, Georgia, was sentenced to 18 months in federal prison.
- CYNTHIA BOLSTON SMITH, A/K/A “CYNT,” age 70, of Milledgeville, Georgia, was sentenced to two years of probation.
“These sentencings and the dismantling of this gang are the result of a true partnership between District Attorney Steve Bradley’s office, Baldwin County Sheriff Bill Massee’s office, the Ocmulgee Drug Task Force, DEA, FBI, ATF, and the Office of the United States Attorney for the Middle District of Georgia,” said United States Attorney Charles E. Peeler. “To those who choose to engage in drug trafficking, firearms trafficking and violent crime, take note: Federal and State law enforcement and prosecutors are teaming up to take you down. Providing the citizens of Middle Georgia with the safe neighborhoods and drug free communities they deserve is the top priority of this office. Thank you to the hard work of law enforcement in this matter.”
“Baldwin County residents can sleep better tonight knowing that this sentence has been returned against this violent crack, powder cocaine and methamphetamine trafficker,” said Robert J. Murphy, the Special Agent in Charge of the Drug Enforcement Administration’s Atlanta Field Division. “This case demonstrates how DEA and its local, state and federal law enforcement partners and the U.S. Attorney’s Office present a united front to disrupt, dismantle and destroy gang-related drug trafficking organizations.”
“Nothing infects our communities more than the infiltration of drugs and guns onto our streets,” said Chris Hacker, Special Agent in Charge (SAC) of FBI Atlanta. “Goddard’s conviction and sentencing are only the beginning of our efforts to protect the good citizens of Baldwin County from the menace this top level gangster and his fellow gang members posed.”
“Sheriff Bill Massee and I both appreciate the excellent coordination between our personnel and those in the Federal system. That partnership has led to a real, identifiable reduction in local gang and drug activity,” said Ocmulgee Judicial Circuit District Attorney Steve Bradley. “These were serious, historical offenders we took off the street, and Baldwin County is much safer as a result.”
The case was brought as part of OCDETF (Organized Crime Drug Enforcement Task Force) and Project Safe Neighborhoods (PSN) programs. OCDETF and PSN are programs that have been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
This case was investigated by the Baldwin County Sheriff’s Office; Ocmulgee Drug Task Force; Drug Enforcement Administration (DEA); Federal Bureau of Investigation (FBI); and Bureau of Alcohol, Tobacco’ Firearms and Explosives (ATF). Assistant U.S. Attorneys Charles Calhoun and Michael Solis are prosecuting the case for the Government with participation and cooperation of Ocmulgee Judicial Circuit District Attorney Steve Bradley.
Questions concerning this case can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.