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Monday 29 October 2018
Georgia Man Indicted for Organizing and Operating an Interstate Jury-Duty Scam Out of His State Prison Cell in GeorgiaRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Georgia man for organizing and operating an interstate jury-duty scam out of his state prison cell in Georgia, announced U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp Jr. and U.S. Marshal Martin Keely.
A nine-count indictment filed in U.S. District Court charges RICO RAYMOND COOK, 45, of Georgia, with wire fraud, conspiracy to commit wire fraud and impersonating a federal officer. A federal grand jury in July indicted two other Georgia residents, TEIANA MARIE TAYLOR, 35, and ORENTHIAL WALKER, 42, for conspiracy to commit wire fraud with false information concerning jury duty.
“The federal government has many ways to make good on debts owed to the United States,” Town said. “Sometimes we knock on your door. Sometimes we don’t even knock. But we never will cold call you.”
“Sometimes we find our suspects in the front yard or back yard, it is not often we find our suspects in the prison yard,” said Keely. “This sends the message that we will find you.”
According to Cook’s indictment, he procured a cell phone for use inside the Georgia state prison where he was serving time. Georgia state prison system records show that Cook is currently serving a sentence for armed robbery, possession of a firearm by a convicted felon, false imprisonment, aggravated assault and first-degree burglary. While in prison, Cook provided the contraband cell phone to a co-conspirator who used it to call residents in the Northern District of Alabama and falsely claim to be an employee of the U.S. Marshals Service or the U.S. District Court. The caller also would falsely claim that the Alabama resident had failed to appear for jury duty, that a judge had issued a warrant for his or her arrest, and then would demand money, according to the indictment.
If the resident agreed to pay, the caller would demand that the victim transfer the money by means of gift cards or through commercial money transfer services to an account controlled by Cook and his co-conspirators, according to his indictment. Cook instructed his co-conspirators to withdraw proceeds of the scheme and transfer the money at his direction, often to members of his family, according to the indictment.
The maximum penalty for conspiracy to commit wire fraud is 20 years in prison and a $250,000 fine. The maximum penalty for wire fraud is 20 years in prison and a fine of $250,000 or twice the gross amount of gain or loss, whichever is greater. The maximum penalty for impersonating a federal official is three years in prison and a $250,000 fine or twice the gross amount of gain or loss, whichever is greater.
Victims of this fraud commonly report that the scammers sound convincing and speak authoritatively. The scammers may use real information about the victim and accurate court addresses. They may also use the real names of law enforcement officers, court officials, and federal judges to make the scam appear more credible. They may even “spoof” the phone number on caller ID so that it falsely appears to be from the court or a government agency.
Citizens can protect themselves by knowing these facts about federal jury service:
- The court will always send a jury summons by U.S. Mail.
- The court and law enforcement will never demand payment over the phone.
- The court and law enforcement will never demand a gift card number to satisfy an obligation.
- A prospective juror who disregards a jury summons will be contacted through the mail by the court clerk’s office and may, in certain circumstances, be ordered to appear before a judge. Such an order will always be in writing and signed by the judge.
- A fine will never be imposed until after the individual has appeared in court and been given the opportunity to explain his or her failure to appear. If a fine is imposed, it will be in open court and reduced to writing (and will not be payable by gift card number).
Citizens who wish to verify whether they were summoned for federal jury duty may contact the Northern District of Alabama’s jury office at 1-800-222-8715. Citizens can report a scam phone call by contacting the FBI Birmingham Field Office at 205-326-6166.
The FBI and the U.S. Marshals Service investigated this case, which Assistant U.S. Attorney Jonathan S. Keim is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Former Swiss Bank Executive Sentenced to Prison for Role in Billion-Dollar International Money Laundering Scheme Involving Funds Embezzled from Venezuelan State-Owned Oil CompanyRead the Press Release
The former managing director and vice chairman of a Swiss bank was sentenced to 10 years in prison today, after previously pleading guilty for his role in a billion-dollar international scheme to launder funds embezzled from Venezuelan state-owned oil company Petróleos de Venezuela, S.A. (PDVSA).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Matthias Krull, 44, a German national and Panamanian resident, pleaded guilty to one count of conspiracy to commit money laundering, on Aug. 22. U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida sentenced Krull to serve 120 months in prison, to be followed by three years of supervised release. Judge Altonaga also ordered Krull to pay a fine in the amount of $50,000 and a forfeiture money judgment of $600,000.
As part of his plea, Krull admitted that in his position with the Swiss bank, he attracted private clients, particularly clients from Venezuela, to the bank. In this role, Krull’s clients included Francisco Convit Guruceaga, who was indicted on money laundering charges on Aug. 16. Krull’s clients also included three unnamed conspirators described in the Aug. 16 indictment.
Krull admitted that the conspiracy began in December 2014 with a currency exchange scheme that was designed to embezzle around $600 million from PDVSA, obtained through bribery and fraud and the conspirators’ efforts to launder a portion of the proceeds of that scheme. By May 2015, the conspiracy had doubled in amount to $1.2 billion embezzled from PDVSA. PDVSA is Venezuela’s primary source of income and foreign currency (namely, U.S. Dollars and Euros). Krull joined the conspiracy in or around 2016, he admitted, when a co-conspirator contacted him to launder the proceeds of a PDVSA foreign-exchange embezzlement scheme.
Ultimately, Krull joined the conspiracy to launder $1.2 billion worth of funds that were embezzled from PDVSA, he admitted. Krull and members of the money laundering conspiracy used Miami, Florida real estate and sophisticated false-investment schemes to conceal that the $1.2 billion was in fact embezzled from PDVSA. Krull also admitted that surrounding and supporting these false-investment laundering schemes are complicit money managers, brokerage firms, banks and real estate investment firms in the United States and elsewhere, operating as a network of professional money launderers.
Krull’s co-conspirators indicted on Aug. 16 include former PDVSA officials, professional third-party money launderers and members of the Venezuelan elite, sometimes known as “boliburgués.”
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force’s (OCDETF) “Operation Money Flight,” a partnership among federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
The investigation was conducted by HSI Miami, HSI London, HSI Rome and HSI Madrid. This case is being prosecuted by Assistant Chief David Johnson and Trial Attorney Gwendolyn A. Stamper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael Nadler of the Economic and Environmental Crimes Section of the Southern District of Florida. Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida is handling the asset forfeiture.
The Criminal Division’s Office of International Affairs provided substantial assistance in this matter; the National Crime Agency of the United Kingdom; and Italian, Spanish and Maltese law enforcement authorities provided assistance.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Swiss Bank Executive Sentenced to Prison for Role in Billion-Dollar International Money Laundering Scheme Involving Funds Embezzled from Venezuelan State-Owned Oil CompanyRead the Press Release
The former managing director and vice chairman of a Swiss bank was sentenced to 10 years in prison today, after previously pleading guilty for his role in a billion-dollar international scheme to launder funds embezzled from Venezuelan state-owned oil company Petróleos de Venezuela, S.A. (PDVSA).
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
Matthias Krull, 44, a German national and Panamanian resident, pleaded guilty to one count of conspiracy to commit money laundering, on Aug. 22. U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida sentenced Krull to serve 120 months in prison, to be followed by three years of supervised release. Judge Altonaga also ordered Krull to pay a fine in the amount of $50,000 and a forfeiture money judgment of $600,000.
As part of his plea, Krull admitted that in his position with the Swiss bank, he attracted private clients, particularly clients from Venezuela, to the bank. In this role, Krull’s clients included Francisco Convit Guruceaga, who was indicted on money laundering charges on Aug. 16. Krull’s clients also included three unnamed conspirators described in the Aug. 16 indictment.
Krull admitted that the conspiracy began in December 2014 with a currency exchange scheme that was designed to embezzle around $600 million from PDVSA, obtained through bribery and fraud and the conspirators’ efforts to launder a portion of the proceeds of that scheme. By May 2015, the conspiracy had doubled in amount to $1.2 billion embezzled from PDVSA. PDVSA is Venezuela’s primary source of income and foreign currency (namely, U.S. Dollars and Euros). Krull joined the conspiracy in or around 2016, he admitted, when a co-conspirator contacted him to launder the proceeds of a PDVSA foreign-exchange embezzlement scheme.
Ultimately, Krull joined the conspiracy to launder $1.2 billion worth of funds that were embezzled from PDVSA, he admitted. Krull and members of the money laundering conspiracy used Miami, Florida real estate and sophisticated false-investment schemes to conceal that the $1.2 billion was in fact embezzled from PDVSA. Krull also admitted that surrounding and supporting these false-investment laundering schemes are complicit money managers, brokerage firms, banks and real estate investment firms in the United States and elsewhere, operating as a network of professional money launderers.
Krull’s co-conspirators indicted on Aug. 16 include former PDVSA officials, professional third-party money launderers and members of the Venezuelan elite, sometimes known as “boliburgués.”
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force’s (OCDETF) “Operation Money Flight,” a partnership among federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
The investigation was conducted by HSI Miami, HSI London, HSI Rome and HSI Madrid. This case is being prosecuted by Assistant U.S. Attorney Michael Nadler of the Economic and Environmental Crimes Section of the Southern District of Florida and Assistant Chief David Johnson and Trial Attorney Gwendolyn A. Stamper of the Criminal Division’s Fraud Section. Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida is handling the asset forfeiture.
The Criminal Division’s Office of International Affairs provided substantial assistance in this matter; the National Crime Agency of the United Kingdom; and Italian, Spanish and Maltese law enforcement authorities provided assistance.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Genentech Employees Charged with Theft of Trade SecretsRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Xanthe Lam, Allen Lam, John Chan, and James Quach for stealing trade secrets from Genentech and related charges, announced United States Attorney Alex G. Tse and FBI Special Agent in Charge John F. Bennett. The indictment, handed down on October 25, 2018, and unsealed today, alleges that the defendants stole confidential Genentech information to help a company in Taiwan create and sell drugs similar to those that were created by Genentech.
According to the indictment, Xanthe Lam worked for Genentech as a Principal Scientist from 1986 until 2017. Her husband, Allen Lam, and James Quach, both were former Genentech employees who, along with John Chan, became consultants for JHL Biotech, Inc. JHL is a company based in Zhubei, Taiwan, that develops “biosimilars.” Biosimilars are roughly the equivalent of a “generic” chemical drug, i.e., designed to have properties similar to a biopharmaceutical that previously was approved by a regulatory agency, such as the Food and Drug Administration. The indictment alleges Xanthe Lam conspired with Allen Lam and John Chan to steal the company’s trade secrets related to biopharmaceuticals Pulmozyme, Rituxan, Herceptin, and Avastin. Xanthe Lam allegedly downloaded, collected, and transferred to Allen Lam and others at JHL certain confidential Genentech documents relating to the processes by which the company formulated drugs and managed raw materials. Xanthe Lam also allegedly secretly consulted for JHL while still employed at Genentech.
The indictment also alleges that Xanthe Lam conspired with former Genentech employee James Quach to illegally use her computer credentials. Specifically, she allowed Quach to gain access to Genentech’s secure document repository and, once he had access to the repository, Quach stole the company’s proprietary manufacturing protocols.
In sum, the Indictment charges the defendants with the following crimes and, if found guilty, they are subject to the following maximum statutory penalties:
Defendant
Age/Residence
Charges
Maximum Penalties
Xanthe Lam
66/ South San Francisco, Calif.
18 U.S.C. §§ 1832(a)(5) – Conspiracy to Commit Theft of Trade Secrets
18 U.S.C. §§ 1832(a) and 2 – Theft of Trade Secrets, Aid and Abet
18 U.S.C. § 1030(b) – Conspiracy to Commit Computer Fraud and Abuse
18 U.S.C. § 1030(a)(2)(C) and 2 – Computer Fraud and Abuse, Aid & Abet
Ten years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
Ten years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
Five years of imprisonment; $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
Five years of imprisonment; $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
Allen Lam
68/ South San Francisco, Calif.
18 U.S.C. §§ 1832(a)(5) – Conspiracy to Commit Theft of Trade Secrets
18 U.S.C. §§ 1832(a) and 2 – Theft of Trade Secrets, Aid and Abet
Ten years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
Ten years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
John Chan
29/ San Francisco, Calif.
18 U.S.C. §§ 1832(a)(5) – Conspiracy to Commit Theft of Trade Secrets
18 U.S.C. §§ 1832(a) and 2 – Theft of Trade Secrets, Aid and Abet
Ten years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
Ten years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
James Quach
58/ Daly City, Calif.
18 U.S.C. § 1030(b) – Conspiracy to Commit Computer Fraud and Abuse
18 U.S.C. § 1030(a)(2)(C) and 2 – Computer Fraud and Abuse, Aid & Abet
Five years of imprisonment; $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
Five years of imprisonment; $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. In addition, any sentence following conviction would 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.
The defendants were all arraigned this morning before U.S. Magistrate Judge Joseph C. Spero. All defendants pleaded not guilty and were released on bond. Magistrate Judge Spero scheduled the defendants’ next district court appearance for November 13, 2018, before U.S. District Judge William Alsup. Quach also will appear on November 2, 2018, before Magistrate Judge Spero for identification of counsel.
Assistant U.S. Attorneys Matthew A. Parrella and Michelle J. Kane are prosecuting the case with the assistance of Elise Etter and Rebecca Shelton. The prosecution is the result of an investigation by the FBI.
Former Bank CEO, Financier, and Business Owner Indicted for Regulatory and Bank FraudRead the Press Release
NEWARK, N.J. – The former CEO of First State Bank, a financier, and a New Jersey business owner were indicted today by a federal grand jury for their roles in an elaborate scheme to deceive the Federal Deposit Insurance Corporation (FDIC) and to deceive and defraud the now defunct First State Bank (FSB), formerly located in Cranford, New Jersey, U.S. Attorney Craig Carpenito announced.
Joseph Natale, Albert Gasparro, and Gary Ketchum were charged with conspiracy to mislead the FDIC and FSB, misleading those two entities, conspiracy to commit bank fraud and bank fraud in a 13-count indictment. Donna Conroy, a conspirator, pleaded guilty in May 2017 and is awaiting sentencing.
According documents filed in this and other cases and statements made in court:
From September 2009 to September 2010, Natale, Gasparro, Ketchum, Conroy and others created the appearance that $7 million in new capital had been invested into FSB by three bona fide purchasers when, in fact, nominee investors and FSB’s own assets had been misused for that purpose. FSB was defrauded into paying $715,000 in fees for that fabricated capital to Gasparro, who then split that money with Natale. To conceal this misconduct, three fraudulent loans were subsequently obtained from FSB, from which Ketchum wrongfully received an additional $176,000. The defendants then misrepresented the true facts underlying this misconduct to the FDIC and FSB. FSB also previously attempted to obtain funds from the Trouble Asset Relief Program (TARP), but ultimately withdrew the application.
The substantive bank and regulatory fraud charges each carry a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. The charged conspiracy has a five-year statutory maximum term of imprisonment and a maximum fine of $250,000 or twice the loss caused or gain realized from that offense.
U.S. Attorney Carpenito credited Special Agent in Charge Patricia Tarasca, FDIC, Office of Inspector General; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and Special Inspector Christy Goldsmith Romero of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
The government is represented by Senior Trial Counsel Andrew Leven of the Healthcare & Government Fraud Unit of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Gasparro: Lawrence Lustberg Esq., Newark
Natale: Michael Critchley Esq., Livingston, New Jersey
Ketchum: Linda Foster, Assistant Federal Public Defender, Newark
Federal Jury Convicts Two Austin Psychologists, Owners of Psychological A.R.T.S., P.C., in Health Care OffensesRead the Press Release
In Austin today, a federal jury convicted two Austin psychologists who own and operate Psychological A.R.T.S., P.C., announced United States Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Attorney General Ken Paxton.
Following a three-week-long trial, jurors found 73-year-old Dr. William Joseph Dubin and his son, 33-year-old Dr. David Fox Dubin, guilty of federal crimes. Dr. William Dubin was found guilty of one count of conspiracy to pay and receive health care kickbacks, and two counts of offering to pay and paying illegal kickbacks. Dr. David Dubin was found guilty of one count of conspiracy to commit health care fraud, one count of health care fraud and aiding and abetting health care fraud, and one count of aggravated identity theft.
Previously, a third defendant in this case, 68-year-old patient recruiter Glen Elwood McKenzie, Jr., of Cedar Park, TX, pleaded guilty to one count of conspiracy to violate the federal anti-kickback law and one count of receiving an illegal kickback. McKenzie was the President of the Board of Directors of an emergency shelter house located approximately eighty miles from Austin that provided temporary shelter for crisis intervention and mental health services to children and youth ages 5 to 17 who had been removed from their homes by the Texas Department of Family and Protective Services.
Evidence provided during trial revealed that Dr. William Dubin paid McKenzie to use his position at the emergency shelter to refer children and youth to Psychological A.R.T.S., for comprehensive mental health services, which were billed to the Medicaid program. Upon receipt of payment for these services, Dr. William Dubin paid McKenzie a 10-percent kickback from the money paid to Psychological A.R.T.S.
Evidence during trial also revealed that Dr. David Dubin engaged in a conspiracy to commit health care fraud and committed health care fraud by causing at least one fraudulent billing to be submitted to the Medicaid program. Evidence further revealed that Dr. David Dubin engaged in aggravated identity theft when he caused a fraudulent claim to be submitted to Medicaid and unlawfully used a patient’s personal identification information to obtain payment of the bill.
Dr. William Dubin faces up to five years in federal prison for each count related to illegal kickbacks. Dr. David Dubin faces up to ten years in federal prison for each count related to health care fraud; and a consecutive mandatory two-year term in federal prison for the count related to aggravated identity theft. They remain on bond pending sentencing scheduled for 10:30 am on February 19, 2019 before United States District Judge Xavier Rodriguez.
Special Agents with the Federal Bureau of Investigation together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit investigated this case. Special Assistant United States Attorney Rex Beasley and Assistant United States Attorneys Greg Surovic, Justin Chung, and Daniel Castillo are prosecuting this case on behalf of the Government.Erie Man Received and Possessed Child PornographyRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
Jonathan Scott Boynton, 30, pleaded guilty to before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Boynton received and possessed computer images and movies depicting prepubescent minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Cercone scheduled sentencing for March 18, 2019 at 12:45 p.m. The law provides for a total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Boynton on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations conducted the investigation that led to the prosecution of Boynton.
Erie Convenience Store Owner Sentenced for Food Stamp Fraud SchemeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to one day in jail, to be followed by one year of home detention and two years of supervised release and ordered to make $111,562.00 in restitution on his conviction of theft of government property, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Jasmin Omanovic, 38.
According to information presented to the court, from October 2011 to February 2015, Omanovic, who was the owner and operator of International Market in Erie, committed food stamp fraud by exchanging food stamps for cash at fifty percent of face value. Omanovic also exchanged food stamps for ineligible items. He also allowed customers to pay off store debt with food stamps and he took customers’ EBT cards and used them at Walmart to restock his shelves.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Department of Agriculture, Office of Inspector General, the Erie Bureau of Police and Homeland Security Investigations for the investigation leading to the successful prosecution of Omanovic.
Durant Man Sentenced to 120 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Derik Wayne Frazier, age 35, of Durant, Oklahoma, was sentenced to 120 months imprisonment and 3 years supervised release for Felon In Possession Of Firearm & Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Durant Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about November 24, 2017, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year knowingly possessed in and affecting commerce a firearm and ammunition which have been shipped and transported in interstate and foreign commerce.
United States Attorney Brian J. Kuester said, “Enforcing federal firearms statutes against defendants that have proven themselves to be violent is an effective tool this office utilizes to help district attorneys and their state and local law enforcement partners make their communities safer. This case is a great example of how collaboration between agencies from different jurisdictions results in a community that is safer.”
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 Kristin Harrington 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.
Detroit man sentenced for heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Charles Marquis Mitchell, of Detroit, Michigan, was sentenced today to 46 months incarceration for distributing heroin, United States Attorney Bill Powell announced.
Mitchell, age 26, pled guilty to one count of “Distribution of Heroin within 1,000 feet of a protected location” in April 2018. Mitchell admitted to distributing heroin near a property belonging to West Virginia University in September of 2017 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Deputy Attorney General Rosenstein Announces Funds and Technical Assistance Resources to Help Law Enforcement Investigate and Prosecute Hate Crimes at Law Enforcement RoundtableRead the Press Release
Deputy Attorney General Rod Rosenstein today announced a grant of more than $840,000 to the University of New Hampshire to conduct a national survey of hate crime incidents and victimization. He also announced that a $10 million dollar technical assistance program launched last March by Attorney General Sessions will now include the prosecution and prevention of hate crimes. For the first time, law enforcement will be able to access critical and innovative education and training resources on hate crimes investigation and prevention. The announcements were made at the Department of Justice Law Enforcement Roundtable on Improving the Identification and Reporting of Hate Crimes, hosted by the Department’s Hate Crimes Enforcement and Prevention Initiative. Acting Assistant Attorney General John Gore for the Civil Rights Division, Phil Keith, Director of Community Oriented Policing Services (COPS), and Matt M. Dummermuth, Office of Justice Programs (OJP) Principal Deputy Assistant Attorney General joined the Deputy Attorney General in making the announcement.
“Today’s roundtable brings together two of the Department’s highest priorities: supporting our state and local law enforcement partners, and deterring bias-motivated crimes,” said Deputy Attorney General Rosenstein. “We will continue to work with our partners to prevent hate crimes and make all of our neighborhoods free from violence and fear.”
“Hate crimes are an attack on a fundamental principle of the United States to be free from fear of violence because of your sexual orientation, gender identity, race, color, religion, or national origin,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice is committed to using every tool at its disposal to combat this type of violence and the grants announced today at the law enforcement roundtable will help strengthen our ability to identify and prosecute these violent hate crimes.”
“In all facets of our work, we must ensure that we understand the needs of law enforcement. That is why it is my top priority to ensure that we are always listening to the field, rather than telling the field what it needs,” said COPS Director Phil Keith. “Through programs like today’s roundtable and the extension of Collaborative Reform technical assistance to hate crimes, we can offer the support and assistance that state, local, and tribal law enforcement agencies request to improve their own hate crimes efforts.”
“Crimes motivated by racial, ethnic, sexual or religious animus carry a particularly vile moral quality, but because they are defined, recorded and investigated differently across states, we do not fully comprehend their impact on public safety,” said Dummermuth. “This study will shed new light on the prevalence and character of hate offending in the United States, and even better, it will show us what policies and practices are working to solve these crimes, bring perpetrators to justice and deliver support to victims.”
The Department is committed to enforcing federal hate crimes statutes, including the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act of 2009 (HCPA), which allow the Department to prosecute certain crimes that are committed because of the actual or perceived race, color, religion, national origin, gender, sexual orientation, gender identity, or disability of any person. The day and a half long law enforcement roundtable joins over fifty law enforcement executives from agencies around the country to explore successful practices and challenges in identifying, reporting, and tracking hate crimes. The roundtable was designed to spur discussions between colleagues about challenges to hate crimes data collection, practical tips on overcoming barriers, and strategies to most efficiently track and prosecute perpetrators of hate crimes nationwide. A report will be issued after the roundtable summarizing the discussion of best practices for law enforcement seeking to improve their agencies’ investigation and reporting of hate crimes.
The multi-phase study, funded by the National Institute of Justice (NIJ) in the Department’s Office of Justice Programs, will provide detailed data about hate crimes, analyze local policies that impact hate crime reporting, and identify successful investigation and prosecution strategies. The study will survey 3,000 law enforcement agencies to collect information on rates of reported hate crime incidents, gather profiles of hate crime offenders, and capture challenges in defining, investigating and documenting hate crimes. The second follow-up phase will survey 250 prosecutors about cases that ended in arrest. The study will run through 2021 and include a report on the findings.
The extension of technical assistance relating to hate crimes by the Collaborative Reform Technical Assistance Center, a partnership with the International Association of Chiefs of Police (IACP), and eight leading law enforcement leadership and labor organizations, will allow law enforcement to build and improve their hate crimes investigation and reporting practices.
The Department has created and launched a number of training and outreach programs in order to work with the network of U.S. Attorney’s Offices, local communities and organizations, and law enforcement to find, identify, investigate, and prosecute hate crimes cases all over the country. These programs include state and local law enforcement trainings, roundtable and panel discussions, stakeholder telephone conferences, and hate crime summits. More information about the Department’s hate crimes efforts, along with a searchable collection of the Department’s resources for law enforcement, community groups, researchers and others, are available on a new DOJ webpage, launched today: www.justice.gov/hatecrimes.
In addition to today’s award, OJP provides indirect support for hate crime programs through several OJP components, such as the Bureau of Justice Statistics, the Bureau of Justice Assistance and the Office for Victims of Crime. More information about OJP’s programs is available at: www.ojp.gov.
The Office of Justice Programs, headed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
Convicted Mississippi Doctor Ordered to Forfeit Assets for Bribery of Former Corrections CommissionerRead the Press Release
Jackson, Miss – Chief United States District Judge Daniel P. Jordan III today ordered convicted felon, Dr. Carl Reddix, 60, of Jackson, to forfeit bank accounts, brokerage accounts, and land to satisfy a judgment of $1,266,438.00 in illegal proceeds he derived from paying bribes and kickbacks to former Mississippi Department of Corrections Commissioner (MDOC) Christopher B. Epps, announced United States Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
"Dr. Reddix discovered today that the arm of justice is long and unrelenting. Today’s order should serve as a warning to others who may think a life of crime is profitable and that you can hide your assets. It is not profitable and you cannot hide. We will find you, you will be prosecuted, and your illegal money will be taken from you in order to make victims whole," said U.S. Attorney Hurst
Reddix was sentenced on December 15, 2017, to serve 72 months in federal prison followed by 2 years of supervised release. He was also fined $15,000 and ordered to forfeit $1,266,438.00. Efforts of the Department of Justice to seek assets to satisfy this Judgment led to Judge Jordan’s order.
Reddix was a part owner of an inmate health care services provider known as Health Assurance, LLC. Reddix began paying bribes and kickbacks to Epps in 2012 to obtain contracts for Health Assurance to provide inmate health care services at East Mississippi Correctional Facility and Marshall County Correctional Facility. In 2013, Health Assurance obtained an additional contract to provide inmate health care services at Wilkinson County Correctional Facility. Reddix paid monthly bribes and kickbacks to Epps for these contracts and other potential contracts. When the scheme was discovered, Reddix had paid Epps a total of $187,500.00 in kickbacks. In return, Reddix and his company, Health Assurance, had obtained over 22 million dollars in contracts with the MDOC resulting in a $1,266,438.00 benefit to Reddix.
Reddix is currently serving his sentence in Butner, North Carolina.
Controller Pleads Guilty to Filing False Tax ReturnRead the Press Release
DENVER – Stuart M. Jameson, of Colorado Springs, Colorado pled guilty earlier in the month before U.S. District Court Judge Raymond P. Moore to filing a false tax return, announced U.S. Attorney Jason R. Dunn, Internal Revenue Service – Criminal Investigation Special Agent in Charge Steven Osborne, and FBI Denver Division Acting Special Agent in Charge Janeen Diguiseppi. Jameson was charged by information on August 30, 2018, and is scheduled to be sentenced by Judge Moore on January 7, 2019.
According to facts contained in the information and plea agreement, Jameson worked as the Controller at Faricy Ford/Lincoln car dealership between 2006 through mid-November 2017. As part of his duties as controller, Jameson was in charge of the dealership’s payroll. During most pay periods from 2006 through November 2017, Jameson paid himself an amount greater than he was entitled.
When the dealership detected the overpayments, it was determined that Jameson embezzled approximately $400,000 between 2006 and 2017. An outside audit determined the dealership was short $419,751. Additionally, Jameson did not report this additional income on his federal income tax returns.
As part of his plea agreement, Jameson agrees to pay restitution of $419,751 to Faricy Ford/Lincoln car dealership. Jameson also agrees to pay restitution to the IRS of $53,669.
Willfully filing a false federal income tax return carries a penalty of not more than 3 years in prison and a fine of up to $250,000.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the FBI.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Weber.
CRS Collaborates on Creation of DOJ Hate Crimes WebsiteRead the Press Release
The Community Relations Service (CRS) collaborated with other components of the Department of Justice (DOJ) to develop the Hate Crimes Website, which officially launched on Monday, October 29, 2018.
The new website provides a centralized portal for the DOJ’s hate crimes resources for victims, law enforcement, researchers, civil rights groups, media, and other related organizations and individuals. The resources include training materials, technical assistance, videos, research reports, statistics, and other helpful information from all the DOJ components working on hate crimes.
Combatting hate crimes is one of the Department’s highest priorities. The Department combats hate crimes through prevention, education, outreach, data collection, and support for state, local, and tribal law enforcement. In addition to CRS, the DOJ components involved in the creation of the website are the Civil Rights Division, Criminal Division, Executive Office for United States Attorneys, Federal Bureau of Investigation, Office of Community Oriented Policing Services, and Office of Justice Programs.
We encourage you to visit the hate crimes website to learn more about how you can help prevent and respond to hate crimes in your community. For more information, please refer to the following DOJ press releases:
Justice Department Releases Update on Hate Crimes Prosecutions and Announces Launch of New Hate Crimes Website (October 29, 2018)
Deputy Attorney General Rod J. Rosenstein Delivers Remarks at a Law Enforcement Roundtable Regarding Improving Identification and Reporting of Hate Crimes (October 29, 2018)
Deputy Attorney General Rosenstein Announces Funds and Technical Assistance Resources to Help Law Enforcement Investigate and Prosecute Hate Crimes at Law Enforcement Roundtable (October 29, 2018)
Bronx, New York Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that ANDRE FIELDS a/k/a “Coop,” a/k/a “Pops,” a/k/a “Boss,” a/k/a “Unc,” 52, of Bronx, New York, pled guilty in U.S. District Court in Bangor, Maine to conspiracy to distribute in excess of one kilogram of heroin and in excess of 280 grams of cocaine base (“crack”). The charge carries a ten-year mandatory minimum prison term and up to life imprisonment, a $10,000,000 fine, and at least five years of supervised release.
According to court records, between January 2015 and December 2017 Fields conspired with others to distribute in excess of one kilogram of heroin and in excess of 280 grams of cocaine base in central Maine. Fields had access to out-of-state sources for the drugs. Members of the conspiracy, including the defendant, would transport the drugs back to Maine. Once here, the defendant and others working at his direction would weigh out and repackage the drugs that were then distributed to central Maine area drug dealers and addicts for further distribution and use. The defendant and others would distribute the drugs from central Maine area residences and hotel rooms where he and others would stay.
The case was investigated by the U.S. Drug Enforcement Administration, with assistance provided by the Maine Drug Enforcement Agency, the Kennebec County Sheriff’s Office, the Augusta Police Department, and the Waterville Police Department. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Bitcoin Dealer Pleads Guilty & Agrees to Forfeit Ill-Gotten GainsRead the Press Release
NEWS RELEASE SUMMARY – October 29, 2018
SAN DIEGO – Jacob Burrell Campos pled guilty today in federal court to operating an unlicensed money transmitting business, in connection with his sale of hundreds of thousands of dollars in Bitcoin to over 1,000 customers throughout the United States from January 2015 to April of 2016.
According to the terms of his plea agreement, Burrell admitted to operating a Bitcoin exchange without registering with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury, and without implementing the required anti-money laundering safeguards. According to the plea agreement, Burrell advertised his business on Localbitcoins.com, and communicated with his customers through email and text messages, often using encrypted applications. He negotiated a commission of 5% above the prevailing exchange rate, and accepted cash in person, through nationwide ATMs, and through MoneyGram. Burrell admitted that he had no anti-money laundering or “know your customer” program, and performed no due diligence on the source of his customers’ money.
Burrell admitted that, at first, he purchased his supply of Bitcoin through a U.S.-based, regulated exchange, but his account was soon closed because of the large number of suspicious transactions. He then resorted to a cryptocurrency exchange in Hong Kong, where he purchased a total of $3.29 million in Bitcoin, in hundreds of separate transactions, between March 2015 and April 2017.
Finally, Burrell admitted that he exchanged his U.S. currency, which he kept in Mexico, with Joseph Castillo, a San Diego-based precious metals dealer. Between late 2016 and early 2018, Burrell and others imported over $1 million in U.S. currency on almost a daily basis. Burrell admitted that they did this in amounts slightly below the $10,000 reporting requirement. Castillo pled guilty to making a false statement on his federal tax returns, and is awaiting sentencing on December 13, 2018.
According to his plea agreement, Burrell agreed to forfeit to the United States a total of $823,357.00.
“Unlicensed money transmitting businesses, especially those operating at or near the border, pose a serious threat to the integrity of the US banking system, and provide an ‘open door’ for criminals to utilize such businesses to launder the proceeds of their illicit activities,” said U.S. Attorney Adam Braverman. “The Department of Justice will continue to investigate and prosecute all individuals and businesses that seek to evade the licensing and anti-money laundering requirements under federal law.”
Burrell will be sentenced on February 11, 2019, and faces a maximum of five years’imprisonment.
DEFENDANT Case Number 18CR3554-H
Jacob Burrell-Campos Age: 21 Rosarito, Baja California, Mexico
Count 1: Conducting an unlicensed money transmitting business, 18 USC 1960.
Statutory maximum: 5 years prison, $250,000 fine.
AGENCIES
Homeland Security Investigations, Internal Revenue Service, Postal Inspection Service
Berkeley County man sentenced for heroin chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Richard Ross Valentine, of Martinsburg, West Virginia, was sentenced today to 41 months incarceration for heroin distribution, United States Attorney Bill Powell announced.
Valentine, age 35, pled guilty one count of “Aiding and Abetting Possession with Intent to Distribute Heroin” in June 2018. Valentine admitted to possessing and distributing heroin in September 2017 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Douglas Mills, of Hedgesville, West Virginia, was sentenced today to probation for cocaine distribution, United States Attorney Bill Powell announced.
Mills, also known as “D,” age 27, pled guilty to one count of “Distribution of Cocaine Base” in July 2018. Mills admitted to selling cocaine in Berkeley County in August 2015.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the West Virginia State Police Bureau of Criminal Investigations, the Jefferson County Sheriff’s Office, and the Martinsburg Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Bakersfield Man Sentenced for Illegally Possessing A FirearmRead the Press Release
FRESNO, Calif. — Ladaireus Jones, 25, of Bakersfield, was sentenced by United States District Dale A. Drozd today to more than four and a half years in prison and three years of supervised release for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, Jones, a documented member of a Bakersfield criminal street gang known as the West Side Crips, possessed a loaded, stolen .38 caliber revolver on October 25, 2017. The complaint filed in this case alleged that telephone calls intercepted pursuant to a court-authorized federal wiretap indicated that Jones and another individual possessed weapons located in a backpack at the scene of a car accident. Officers responded to the scene and seized two firearms from the backpack, including the .38 caliber revolver. Jones later pleaded guilty to possessing that weapon.
According to the indictment and Jones’s subsequent plea agreement, at the time he possessed the revolver, Jones had been convicted of two felonies in Kern County, a 2009 conviction for Assault with Force Likely to Produce Great Bodily Injury, and a 2012 conviction for being felon in possession of a firearm. Consequently, he had been prohibited from possessing firearms or ammunition.
This case is the product of an investigation of the West Side Crips by the Federal Bureau of Investigation, the California Department of Justice, the Bakersfield Police Department and the Drug Enforcement Administration. Assistant United States Attorneys Angela Scott and Vincenza Rabenn are prosecuting the case.
Aux Sable Liquid Products Agrees to Take Measures to Resolve Clean Air Act Violations at its Natural Gas Processing Facility in Morris, IllinoisRead the Press Release
Today, the U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA) announced a settlement that requires Aux Sable Liquid Products LP (Aux Sable) to strengthen air pollution controls and reduce air pollution at its natural gas processing facility, located southwest of Chicago. The facility, which is the largest natural gas processing plant in the United States, is located within the Chicago Non-Attainment Area for ground-level ozone, which includes the greater Chicago area and the northwest Indiana counties of Lake and Porter.
Under the terms of the settlement, Aux Sable will pay a $2.7 million civil penalty and at least $4.5 million on improvements to pollution controls and projects to reduce volatile organic compounds (VOCs) and nitrogen oxide emissions (NOX).
“Today’s settlement appropriately enforces and resolves significant violations of the Clean Air Act by Aux Sable,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The important upgrades at Aux Sable facility – required by today’s action -- will improve air quality in the Chicago area. The Department of Justice continues to work with EPA to protect clean air for all Americans.”
“The settlement reached today will result in cleaner air for communities in the Greater Chicago area by reducing emissions of pollutants that are ozone precursors,” said Assistant Administrator Susan Bodine for EPA’s Office Of Enforcement and Compliance Assurance. “This work required under the settlement will not only achieve compliance with the Clean Air Act, it also will advance EPA’s goal of reducing the number of nonattainment areas in the country.”
This settlement addresses alleged violations of the Clean Air Act’s New Source Review Rules for excess fugitive emissions of VOCs. The Department of Justice and EPA allege that VOC emissions from equipment leaks at the facility have significantly exceeded the applicable thresholds for such emissions since the facility began operating in 2000, and Aux Sable has therefore never complied with the New Source Review requirements, including the lowest achievable emission rate and emission offset standards.
In this settlement, Aux Sable has agreed to take measures to reduce its emissions of VOCs, including (1) expanding its fugitive emission leak detection and repair program to cover thousands of fittings at its facility; (2) complying with a more stringent leak threshold for making repairs to valves throughout the facility; (3) installing state-of-the-art “low-emissions” technology to replace or repack older leaking valves; (4) achieving 99 percent control efficiency of VOC emissions at the facility’s off-gas incinerators; (5) complying with flare operation monitoring requirements; and (6) installing ultra-low oxides of nitrogen (NOx) burner technology at the facility’s two process heaters. EPA estimates that Aux Sable will spend at least $1.5 million in capital costs and at least $250,000 per year in incremental operational and maintenance costs to complete these improvements.
Additionally, Aux Sable has addressed its noncompliance with the Illinois volatile organic material emission trading program by purchasing from the Illinois EPA the necessary VOC emission allotments and required emission excursion compensation to cover VOC emission-allotment deficiencies from 2001 to 2015, at a cost of more than $156,000. Aux Sable also submitted to Illinois corrections to past annual emission reports.
To mitigate the environmental harm caused by its Clean Air Act violations, Aux Sable has agreed to implement mitigation projects to reduce VOC and NOX emissions at locomotive switchyards located in the Chicago Area, which will include repowering switcher locomotives and installing switcher locomotive idle-reduction technology. Aux Sable will spend $3 million to implement these projects.
VOCs include a variety of chemicals that may produce adverse health effects such as eye, nose, and throat irritation, headaches, nausea, and damage to the liver, kidney, and the central nervous system. VOCs also contribute to the formation of ground level ozone. Breathing ozone can trigger a variety of health problems, particularly for children, the elderly, and anyone with lung diseases such as asthma. Ground level ozone can also have harmful effects on sensitive vegetation and ecosystems. Besides ground level ozone, NOx emissions also contribute to acid rain, particulate matter, water quality deterioration, and visual impairment.
The consent decree has been lodged with the U.S. District Court for the Northern District of Illinois and is subject to public comment for a period of at least 30 days. Notice of the lodging of the consent decree will appear in the Federal Register, allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
For more information on the settlement, please visit: https://www.epa.gov/enforcement/aux-sable-liquid-products-clean-air-act-settlement.
Anderson Man Pleads Guilty in Federal Court to Using Weapons of Mass DestructionRead the Press Release
Greenville, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Wesley Dallas Ayers, 27, of Anderson, South Carolina, pled guilty in federal court to using, attempting to use, and threatening to use weapons of mass destruction; possession and discharge of a firearm in furtherance of a violent crime; and use of an explosive device during the commission of a felony.
Ayers admitted that he constructed, and then placed, three explosive devices in various parts of Anderson County between January 24, 2018, and February 24, 2018. A device placed by Ayers on January 30, 2018, at the intersection of Travis and Martin Roads, in Anderson County, detonated and injured one individual. The other two devices, which Ayers also placed in or near area roadways, were intercepted and rendered safe by federal, state, and local law enforcement agencies.
In that same timeframe, Ayers placed three hoax devices, which resembled explosives but did not contain any blasting agent. With some of those devices, the defendant left threatening messages that more, and more powerful, devices were to come.
Ayers was arrested after an exhaustive month-long investigation, with the combined efforts of the Federal Bureau of Investigation, Alcohol, Tobacco, Explosives, and Firearms, Anderson County Sheriff’s Office, and numerous law enforcement agencies from around the State of South Carolina. DNA and other forensic evidence associated Ayers with the various devices. Additionally, a search of his property produced numerous items consistent with the manufacture of the same.
Ayers faces a mandatory sentence of at least 20 years in federal prison, and up to a maximum of life imprisonment, in addition to a fine of $250,000 and up to 3 years of court-ordered supervision.
The case was investigated by the Federal Bureau of Investigation in conjunction with numerous other federal, state, and local law enforcement agencies. Assistant United States Attorney D. Josev Brewer of the Greenville office is prosecuting the case.
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11 Defendants Charged in Federal Court with Committing Narcotics and Firearms Offenses in the BronxRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Keith Kruskall, Acting Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), today announced the unsealing of an Indictment and a Complaint charging a total of 11 defendants with committing various narcotics and firearms offenses in the Bronx, New York.
Manhattan U.S. Attorney Geoffrey S. Berman stated: “Today’s charges target multiple forms of alleged drug dealing and the gun violence that accompanies the drug trade. From feeding the opioid crisis through the sale of Oxycodone, to pouring crack into our streets, to possessing and firing guns to secure drug territory, the alleged conduct of these 11 defendants fueled a cycle of addiction and violence. The joint investigative work of the NYPD and the DEA leading to today’s arrests reflects the ongoing commitment of federal and local authorities to break this cycle.”
DEA Acting Special Agent-In-Charge Keith Kruskall said: “DEA supports the NYPD in their efforts to protect New Yorkers from drug traffickers and the associated violence. This investigation identified and arrested crew members who allegedly pushed oxycodone, crack, and marijuana into user’s hands, threatening neighbors with drug addiction and gun violence.”
NYPD Commissioner James P. O’Neill said: “The NYPD is relentless in our commitment to fight crime and keep all New Yorkers safe. By directly answering community concerns and enhancing our solid working relationships with the Southern District and the DEA, we are consistently able to remove drug dealers from our neighborhoods and avert the violence so often associated with their criminal activities.”
As alleged in the Indictment and Complaint unsealed today in Manhattan federal court[1]:
Between 2015 through 2018, JENCY DIAZ, a/k/a “JC,” KEVIN MORA, a/k/a “Jaffy,” CERENE MAYES, a/k/a “Mama,” HOWARD AYLLON, a/k/a “Kapo,” MYRON DECOSTA, and CARLA DECOSTA, conspired to sell Oxycodone.
In 2013 and 2014, KEVIN MORA, ARTURO MORA, a/k/a “Etho,” and WHYKEE JOHNSON, conspired to sell crack cocaine and marijuana and possessed firearms in furtherance of that conspiracy, some of which were brandished and discharged.
Between April 2018 and the present, ALAN ARIAS, WALTHER CASTILLO, a/k/a “Walter,” and RUDY DELGADO, conspired to sell more than 280 grams of crack cocaine in and around the Bronx, New York.
Seven defendants were taken into federal custody in the Bronx this morning. Those defendants will be presented in Manhattan federal court today before U.S. Magistrate Judge Sarah Netburn. CARLA DECOSTA was arrested in Delaware this morning and will be presented in federal court there today. JOHNSON was already in federal custody and will be arraigned at a future date. Defendants ARTURO MORA and ALAN ARIAS remain at large.
* * *
Charts containing the names of the defendants who were charged today, and the charges and maximum penalties they face, are attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Berman praised the outstanding investigative work of the NYPD and the DEA. Mr. Berman also thanked the Bronx District Attorney’s Office for its assistance in the case.
These cases are being handled by the Office’s Violent and Organized Crime Unit and Narcotics Unit. Assistant United States Attorneys Frank Balsamello, Maurene Comey, and Adam Hobson are in charge of the prosecutions.
The charges contained in the Indictment and Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Jency Diaz, et al., 18 Cr. 749
United States v. Alan Arias, et al., 18 Mag. 9136
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute Oxycodone.)
JENCY DIAZ,
a/k/a “JC” (27 years old)
KEVIN MORA,
a/k/a “Jaffy” (30 years old)
CERENE MAYES,
a/k/a “Mama” (59 years old)
HOWARD AYLLON,
a/k/a “Kapo” (30 years old)
MYRON DECOSTA (39 years old)
CARLA DECOSTA (45 years old)
20 years in prison
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute crack cocaine.)
KEVIN MORA,
a/k/a “Jaffy”
ARTURO MORA,
a/k/a “Etho” (29 years old)
WHYKEE JOHNSON
20 years in prison
Possession and discharge of a firearm in furtherance of a drug trafficking crime
KEVIN MORA,
a/k/a “Jaffy”
ARTURO MORA,
a/k/a “Etho”
WHYKEE JOHNSON (32 years old)
Life in prison
Mandatory minimum:
ten years in prison, to be imposed consecutively to any other sentenceNarcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 280 grams or more of crack cocaine.)
ALAN ARIAS (25 years old)
WALTHER CASTILLO,
a/k/a “Walter” (33 years old)
RUDY DELGADO (33 years old)
Life in prison
Mandatory minimum:
10 years in prison
[1] As the introductory phrase signifies, the entirety of the texts of the Indictment and the Complaint, as well as the descriptions of the Indictment and the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
10 Defendants Charged in White Plains Federal Court with Participating in A Narcotics Conspiracy in Sullivan CountyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), George P. Beach II, the Superintendent of the New York State Police (“NYSP”), Robert Mir, the Chief of the Village of Monticello Police Department, and Michael A. Schiff, the Sullivan County Sheriff, announced the unsealing of an Indictment on October 26 charging a total of 10 defendants with participating in a narcotics conspiracy in Sullivan County, New York.
As alleged in the Indictment unsealed last Friday in White Plains federal court and a Complaint that was previously filed in the same case[1]:
In at least 2017 and 2018, JHOAN ADAMES, a/k/a “Chelo,” 29, ROLANDO NIEVES, a/k/a “Rolo,” 31, JASON NIEVES-PINO, 27, JOSE NIEVES-HERRERA, 49, JOSE RUBERT, 52, PERVIS MARCUS, 56, JUSTIN FABRICANT, 30, ANICASIO HERNANDEZ, a/k/a “Nick,” 40, OSVALDO MANGUALBONET, 47, FRANK VELEZ, a/k/a “Frankie,” 49, conspired to sell narcotics. In particular, ROLANDO NIEVES, JASON NIEVES-PINO, JOSE NIEVES-HERRERA, JOSE RUBERT, and PERVIS MARCUS, conspired to sell 280 grams or more of crack cocaine and 500 grams or more of cocaine. JHOAN ADAMES and FRANK VELEZ conspired to sell 280 grams or more of crack cocaine, and JUSTIN FABRICANT, ANICASIO HERNANDEZ, and OSVALDO MANGUALBONET conspired to sell 500 grams or more of cocaine. Members of the conspiracy distributed cocaine and crack cocaine in different locations in Sullivan County, New York, including in the parking lot of an apartment complex in the Village of Monticello. During the course of this investigation, law enforcement purchased more than 280 grams of crack cocaine and more than 100 grams of powder cocaine from members of the conspiracy during controlled purchases.
* * *
Seven defendants were taken into federal custody last week. Those seven defendants were presented in White Plains federal court on Friday, October 26, before U.S. Magistrate Judge Paul E. Davison. Two additional defendants were previously arrested in August 2018. Defendant ADAMES remains at large.
A chart containing the names of the defendants charged in the Indictment, and the charges and maximum penalties they face, is attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI, the New York State Police, the Village of Monticello Police Department, and the Sullivan County Sheriff’s Department. Mr. Berman also thanked the Sullivan County District Attorney’s Office and the Orange County Sheriff’s Department for their assistance in the case.
These cases are being handled by the Office’s White Plains Division. Assistant United States Attorneys Samuel Raymond and Maurene Comey are in charge of the prosecution.
The charges contained in the Indictment and Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 280 grams or more of crack cocaine.)
JHOAN ADAMES
ROLANDO NIEVES
JASON NIEVES-PINO
JOSE NIEVES-HERRERA
JOSE RUBERT
PERVIS MARCUS
FRANK VELEZ
Life in prison
Mandatory minimum:
10 years in prisonNarcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine.)
ROLANDO NIEVES
JASON NIEVES-PINO
JOSE NIEVES-HERRERA
JOSE RUBERT
PERVIS MARCUS
JUSTIN FABRICANT
ANICASIO HERNANDEZ
OSVALDO MANGUALBONET
40 years in prison
Mandatory minimum:
5 years in prison
[1] As the introductory phrase signifies, the entirety of the texts of the Indictment and Complaint, as well as the descriptions of the Indictment and Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Sunday 28 October 2018
Sioux Falls Man Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of conspiring to distribute 500 grams or more of methamphetamine was sentenced on October 22, 2018, by U.S. District Judge Karen E. Schreier.
Aluong Hakim Aluong, a/k/a “Double A,” a/k/a “Double,” age 34, was sentenced to 260 months in prison, to be followed by 10 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund. Because Aluong had been previously convicted of a drug felony, his mandatory minimum sentence of 120 months in prison and 5 years of supervised release was doubled.
Aluong was indicted for Conspiracy to Distribute a Controlled Substance and Felon in Possession of a Firearm by a federal grand jury on November 7, 2017. He pled guilty to the drug conspiracy on July 27, 2018. Although the firearm charge was dismissed, it was considered in determining his sentence.
Aluong distributed over 500 grams of methamphetamine to others for further distribution in the Sioux Falls area.
This case was investigated by the Sioux Falls Police Department, the Minnehaha County Sheriff’s Office, the Sioux Falls Area Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Aluong was immediately turned over to the custody of the U.S. Marshals Service.
Pierre Man Indicted on Methamphetamine and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
Paul Frost, age 46, was indicted on October 16, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $1,000,000 fine, at least 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 15, 2018, Frost knowingly and intentionally possessed with the intent to distribute methamphetamine, a Schedule II controlled substance, in South Dakota. The Indictment further alleges that on both April 3, 2017, and June 15, 2018, Frost, being an unlawful user of a controlled substance, did knowingly possess firearms.
The charges are merely accusations and Frost is presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Frost was released on bond pending trial. A trial date has not been set.
Lower Brule Man Charged with Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm.
Vincent Battese, age 32, was indicted on October 16, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that October 5, 2018, Battese, who had been previously convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess and receive a firearm.
The charge is merely an accusation and Battese is presumed innocent until and unless proven guilty.
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.
The investigation is being conducted by the Bureau of Indian Affairs, Lower Brule Agency and by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Battese was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Fort Thompson Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Rain Blaine, age 18, was indicted on August 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 24, 2018, Blaine unlawfully assaulted an individual with a knife and said assault resulted in serious bodily injury to the victim.
The charges are merely accusations and Blaine is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Blaine was released on bond with conditions pending trial. A trial date has not been set.
Eagle Butte Woman Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Marilyn Ducheneaux, age 21, was indicted on October 16, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on October 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison, including a mandatory minimum of 10 years in federal prison and/or a $10,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown, but no later than on January 1, 2016, and continuing to October 16, 2018, in South Dakota, Ducheneaux knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance.
The charge is merely an accusation and Ducheneaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Ducheneaux was released on bond pending trial. A trial date has not been set.
Bridgewater Man Sentenced for Insurance FraudRead the Press Release
United States Attorney Ron Parsons announced that a Bridgewater, South Dakota, man convicted of Insurance Fraud was sentenced on October 22, 2018, by U.S. District Judge Karen E. Schreier.
Steven Dean Krier, age 57, was sentenced to 2 months in federal prison, followed by 30 months of supervised release, and ordered to pay $54,625.50 in restitution to Dakota Bail Bonds, as well as a special assessment of $100 to the Federal Crime Victims Fund.
Krier was indicted by a federal grand jury on May 9, 2017. He pled guilty on July 27, 2018.
The conviction stemmed from incidents between July 7, 2014, and May 31, 2015, when Krier was an employee of Dakota Bail Bonds of Sioux Falls. Krier sold bail bonds on behalf of Dakota Bail Bonds, but did not turn over the premiums collected on over 50 bail bonds that he sold. The bonds were guaranteed by Financial Casualty and Surety, Inc. based in Houston, Texas. As a result, Krier willfully misappropriated over $50,000 of the funds and premiums of Dakota Bail Bonds and Financial Casualty and Surety.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Krier has been allowed to self-report to the custody of the U.S. Marshals Service by October 29, 2018.
Saturday 27 October 2018
United States Attorney Mike Stuart Implements Election Day Program to Stop Fraud and Protect Voting RightsRead the Press Release
CHARLESTON, W.Va. -- United States Attorney Mike Stuart announced today that Assistant United States Attorney (AUSA) Philip Wright 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 Wright has been appointed to serve as the District Election Officer (DEO) for the Southern District of West Virginia, 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.
“Voting is the most fundamental right to the preservation of liberty,” said United States Attorney Stuart. “The sanctity of the vote must be protected. 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 Stuart stated that AUSA/DEO Wright will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: 1-800-659-8726 ext. 12381 or 304-345-2200.
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 304-346-2300.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Stuart 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.”
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Statement on Filing of Federal ChargesRead the Press Release
PITTSBURGH – Scott W. Brady, United States Attorney for the Western District of Pennsylvania, and Robert Jones, Special Agent in Charge of the Federal Bureau of Investigation, issued the following statement today in response to media inquiries:
"On Saturday, October 27, 2018, at 8:05 p.m., U.S. Magistrate Judge Robert C. Mitchell signed a criminal complaint charging Robert Bowers of Baldwin, Pa., with 29 counts setting forth federal crimes of violence and firearms offenses. The crimes of violence are based upon the federal civil rights laws prohibiting hate crimes. The FBI in Pittsburgh is leading the investigation."
The federal complaint alleges that Bowers committed the following crimes on or about October 27, 2018, in the Western District of Pennsylvania:
• Eleven counts of Obstruction of Exercise of Religious Beliefs Resulting in Death (18 U.S.C. §§ 247(a)(2) and 247(d)(1))
• Eleven counts of Use of a Firearm to Commit Murder During and in Relation to a Crime of Violence (18 U.S.C. §§ 924(c)(1)(A) and 924(j)(1)
• Four counts of Obstruction of Exercise of Religious Beliefs Resulting in Bodily Injury to a Public Safety Officer 18 U.S.C. §§ 247(a)(2) and 247(d)(3))
• Three counts of Use and Discharge of a Firearm During and in Relation to a Crime of Violence (18 U.S.C. §§ 924(c)(1)(A) and 924(iii))
Link to Signed Bowers ComplaintAttorney General Sessions Delivered the Following Statement About Today’s Tragedy in PittsburghRead the Press Release
Attorney General Sessions today issued the following statement on the horrific tragedy in Pittsburgh:
“Hatred and violence on the basis of religion can have no place in our society,” Attorney General Jeff Sessions said. “Every American has the right to attend their house of worship in safety. Today 11 innocent people were suddenly and viciously murdered during religious services and several law enforcement officers were shot. These alleged crimes are reprehensible and utterly repugnant to the values of this nation. Accordingly, the Department of Justice will file hate crimes and other criminal charges against the defendant, including charges that could lead to the death penalty.
“It has been an important week for us to show gratitude for the hard work of our law officers around the country. And today was no exception. I want to thank the FBI, ATF, Pittsburgh police, and especially the heroic officers who were so quick to respond to the shooting, including the multiple officers who were shot. These officers ran to danger to save others, which reflects the highest traditions of policing in this country. There can be no doubt that they saved lives today.
“The Department of Justice will continue to support our state and local partners and we will continue to bring the full force of the law against anyone who would violate the civil rights of the American people.”
Friday 26 October 2018
West Virginia Man Sentenced to Five Years in Prison for Distributing and Possessing Child PornographyRead the Press Release
Charleston, South Carolina --- United States Attorney Sherri A. Lydon announced today that Thomas Owen Haynes II, 47, of Bluefield, West Virginia, formerly of Ladson, South Carolina, was sentenced to five years in federal prison for distribution, receipt, and possession of child pornography.
According to court documents, the Department of Justice’s Internet Crimes Against Children task force (ICAC) sent a lead to the Department of Homeland Security Investigations (HSI), which then obtained evidence that Haynes had been using his cell phone to view, receive, and distribute images and videos of child pornography.
Haynes pled guilty, and United States District Court Judge David C. Norton sentenced him to 60 months imprisonment. There is no parole in the federal system. After Haynes is released from prison, he will be under court-ordered supervision for life.
The conviction is the result of an investigation conducted by the Department of Homeland Security Investigations. Assistant United States Attorney Nathan Williams of the Charleston office prosecuted the case.
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 Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's 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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Wakefield Man Pleads Guilty in Connection with Decade-Long Mortgage Fraud SchemeRead the Press Release
BOSTON – A Wakefield man pleaded guilty today in federal court in Boston in connection with a decade-long mortgage fraud scheme involving at least two dozen fraudulent loan transactions and $4.3 million in losses to lenders.
Joseph Bates III, 38, of Wakefield, pleaded guilty before U.S. Senior District Court Judge Douglas P. Woodlock to an Information charging him with one count of conspiracy, three counts of wire fraud affecting a financial institution, and two counts of bank fraud. A sentencing date has not yet been scheduled. One of Bates’ alleged co-conspirators, George Kritopoulos, 46, of Salem, was indicted on related charges in September 2018, and another participant, David Plunkett, 52, of Lynn, was charged by Information.
According to the charging documents, from 2006 through 2015, Bates and others engaged in a scheme to defraud banks and other financial institutions by causing false information to be submitted to those institutions on behalf of borrowers – people recruited to purchase properties – located primarily in Salem. The properties were usually multi-family buildings with two-to-four units, which the co-conspirators then converted into condominiums. The co-conspirators recruited other borrowers to purchase the individual condominium units, which were also financed by fraudulent mortgage loans.
The false information submitted to lenders included, among other things, representations concerning the borrowers’ employment, income, assets, and intent to occupy the property. Specifically, the false employment information included representations that borrowers were employed by entities that were, in fact, shell companies used to advance the fraudulent scheme. The employment information included false representations about the income that the borrowers received from the entities, when, in fact, the borrowers received little or no income from them. Furthermore, the income asserted on the borrowers’ loan applications substantially overstated their true income. The false information also included representations that the recruited borrowers intended to live in the properties that they were purchasing, when the borrowers, in fact, did not intend to do so. Plunkett allegedly assisted the scheme by preparing tax returns for some of the borrowers that contained false and inflated income. Some of those tax returns were submitted to lenders in support of the fraudulent loan applications.
Because the borrowers did not have the financial ability to repay the loans, in many instances, they defaulted on their loan payments, resulting in foreclosures and losses to the financial institutions of more than $4.3 million.
The charges of bank fraud and wire fraud affecting a financial institution each provide for sentences of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million. The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Mark J. Balthazard and Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Vista Man Sentenced for Drug Trafficking and Firearms OffensesRead the Press Release
NEWS RELEASE SUMMARY – October 26, 2018
SAN DIEGO – Arash Sean Soltani of Vista was sentenced yesterday to 15 years in prison, followed by 5 years of supervised release, for possession of methamphetamine and marijuana with intent to distribute and for possession of firearm in furtherance of his drug trafficking activities, by the Honorable Gonzalo P. Curiel, United States District Judge, Southern District of California.
At the time of his guilty plea, Soltani admitted that he possessed four AR15-style rifles, a fully automatic handgun, and several thousand rounds of ammunition to protect his supply of more than half a pound of methamphetamine and 136 marijuana plants and to further his drug trafficking activities. According to court records, in addition to the firearms, ammunition, methamphetamine and marijuana plants, law enforcement officers also seized marijuana oil extraction equipment, harvested and concentrated cannabis, cannabis oil and a scale with marijuana residue during a search of Soltani’s two homes in Vista.
“Fighting violent crime is a top priority for our office,” said United States Attorney Adam Braverman. “San Diego has the lowest crime rate in 49 years and the lowest violent crime rate of all major cities in the nation last year. We will continue to prosecute cases like this to keep San Diego safe.”
“ATF recognizes the role firearms play in violent crimes and focuses on armed violent offenders and career criminals, narcotics traffickers, violent gang activity, and domestic and international arms trafficker’s” said Bureau of Alcohol, Tobacco, Firearms and Explosives Los Angeles’ Special Agent in Charge Bill McMullan. “ATF will continue to target, investigate and recommend for prosecution these offenders to reduce the level of violent crime and to enhance public safety.”
DEFENDANT Case Number 17CR0843-GPC
Arash Sean Soltani Age: 45 Vista, CA
SUMMARY OF CHARGES
Count 1, Possession of Methamphetamine and Marijuana with Intent to Distribute, in violation of Title 21, U.S.C. 841 (A)(1)
Maximum penalty: Life in prison and $10 million fine; mandatory minimum 10 years in prison
Count 2, Possession of Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, U.S.C. 924 (c) (1) (A) (i)
Maximum Penalty: Life in prison and $250,000 fine; mandatory minimum five years in prison
AGENCY
Bureau of Alcohol Tobacco Firearms and Explosives
San Diego County Sheriff’s Department
*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 to 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.
United States Joins Lawsuits Against Tetra Tech EC Inc. Alleging False Claims in Connection with Shipyard CleanupRead the Press Release
SAN FRANCISCO – The United States has intervened in three whistleblower cases pending in the Northern District of California against Tetra Tech EC Inc. (Tetra Tech) alleging that Tetra Tech submitted false claims to the United States Navy for radiological remediation and support services provided at Hunters Point Naval Shipyard in San Francisco, the Justice Department announced today.
Tetra Tech is a government contractor headquartered in Morris Plains, New Jersey. The Navy awarded contracts to Tetra Tech to test parcels of land at the Hunters Point Naval Shipyard for radiation and to remediate any areas where the radiation was excessive. The lawsuits allege that Tetra Tech misrepresented the source of soil samples it submitted for radiological testing. The lawsuits also allege that Tetra Tech falsified data collected from radiological surveys of existing buildings at Hunters Point Naval Shipyard.
Earlier this year, two Tetra Tech supervisors, Stephen C. Rolfe and Justin E. Hubbard, pleaded guilty to falsifying records and were sentenced to eight months in prison. Rolfe and Hubbard both admitted as part of their guilty pleas that, rather than take soil samples from the survey units undergoing analysis, they participated in the substitution of “clean” (non-radioactive) dirt fraudulently taken from other areas within the former naval base.
“It is of paramount concern to this community and the United States that the radiological remediation at Hunter’s Point Naval Shipyard be completed properly and lawfully,” said United States Attorney Tse for the Northern District of California. “Today’s intervention will ensure that the Navy’s contractors retained to work in the Northern District of California are held accountable for any failures to comply with the contract that was intended to make certain critical testing was completed. We will ensure compliance with all contractual obligations for which the government has paid.”
“It was of critical importance to the United States Navy, and the public, that Tetra Tech perform accurately and fully the radiological testing and remediation at the Hunters Point site for which it was hired,” said Assistant Attorney General Joseph H. Hunt of the Department of Justice’s Civil Division. “The Department of Justice will vigorously pursue action against those who obtain federal funds based on promises they knowingly fail to keep.”
"The Department of the Navy will cooperate with the Department of Justice regarding this litigation,” said Secretary of the Navy Richard V. Spencer. “As a steward of taxpayer dollars, the Navy is responsible and accountable to the public for our investments in manning, training, and equipping a ready and lethal Navy the Nation Needs. In doing so, we demand and expect the same from our private industry partners."
The whistleblower actions were filed under the qui tam provisions of the False Claims Act, which permit private parties to file suit on behalf of the United States for false claims and to share in any recovery. The act also permits the United States to intervene in such an action, as it has done in part in these three whistleblower actions.
The whistleblower lawsuits are captioned United States ex rel. Jahr, et al. v. Tetra Tech, EC, Inc., et al., Civil Action No. 13-3835 JD (N.D. Cal.), United States ex rel. Smith v. Tetra Tech EC, Inc., et al., Civil Action No. 16-1106 JD (N.D. Cal.), and United States ex rel. Wadsworth v. Tetra Tech EC, Inc., Civil Action No. 16-1107 (N.D.Cal.).
The cases are assigned to the Hon. James Donato, U.S. District Judge who has scheduled a case management conference for February 28, 2019. The United States plans to file its complaint against Tetra Tech in the matter on or before January 14, 2019.
The claims asserted in the three currently-filed complaints are allegations only and there has been no determination of liability.
United States Joins Lawsuits Against Tetra Tech EC Inc. Alleging False Claims in Connection with Shipyard CleanupRead the Press Release
The United States has intervened in three whistleblower cases pending in the Northern District of California against Tetra Tech EC Inc. (Tetra Tech) alleging that Tetra Tech submitted false claims to the United States Navy for radiological remediation and support services provided at Hunters Point Naval Shipyard in San Francisco, the Justice Department announced today.
Tetra Tech is a government contractor headquartered in Morris Plains, New Jersey. The Navy awarded contracts to Tetra Tech to test parcels of land at the Hunters Point Naval Shipyard for radiation and to remediate any areas where the radiation was excessive. The lawsuits allege that Tetra Tech misrepresented the source of soil samples it submitted for radiological testing. The lawsuits also allege that Tetra Tech falsified data collected from radiological surveys of existing buildings at Hunters Point Naval Shipyard.
Earlier this year, two Tetra Tech supervisors, Stephen C. Rolfe and Justin E. Hubbard, pleaded guilty to falsifying records and were sentenced to eight months in prison. Rolfe and Hubbard both admitted as part of their guilty pleas that, rather than take soil samples from the survey units undergoing analysis, they participated in the substitution of “clean” (non-radioactive) dirt fraudulently taken from other areas within the former naval base.
“It was of critical importance to the United States Navy, and the public, that Tetra Tech perform accurately and fully the radiological testing and remediation at the Hunters Point site for which it was hired,” said Assistant Attorney General Joseph H. Hunt of the Department of Justice’s Civil Division. “The Department of Justice will vigorously pursue action against those who obtain federal funds based on promises they knowingly fail to keep.”
“It is of paramount concern to this community and the United States that the radiological remediation at Hunter’s Point Naval Shipyard be completed properly and lawfully,” said United States Attorney Tse for the Northern District of California. “Today’s intervention will ensure that the Navy’s contractors retained to work in the Northern District of California are held accountable for any failures to comply with the contract that was intended to make certain critical testing was completed. We will ensure compliance with all contractual obligations for which the government has paid.”
"The Department of the Navy will cooperate with the Department of Justice regarding this litigation,” said Secretary of the Navy Richard V. Spencer. “As a steward of taxpayer dollars, the Navy is responsible and accountable to the public for our investments in manning, training, and equipping a ready and lethal Navy the Nation Needs. In doing so, we demand and expect the same from our private industry partners."
The whistleblower actions were filed under the qui tam provisions of the False Claims Act, which permit private parties to file suit on behalf of the United States for false claims and to share in any recovery. The act also permits the United States to intervene in such an action, as it has done in part in these three whistleblower actions.
The whistleblower lawsuits are captioned United States ex rel. Jahr, et al. v. Tetra Tech, EC, Inc., et al., Civil Action No. 13-3835 JD (N.D. Cal.), United States ex rel. Smith v. Tetra Tech EC, Inc., et al., Civil Action No. 16-1106 JD (N.D. Cal.), and United States ex rel. Wadsworth v. Tetra Tech EC, Inc., Civil Action No. 16-1107 (N.D.Cal.).
The claims asserted in the three complaints are allegations only and there has been no determination of liability.
United States Attorneys Jointly Announce Election Day ProgramRead the Press Release
United States Attorneys Scott C. Blader of the Western District of Wisconsin and Matthew D. Krueger of the Eastern District of Wisconsin announced today that they have appointed Assistant United States Attorneys to lead the efforts of their respective offices in connection with the Justice Department’s nationwide Election Day Program for the November 6, 2018, general election.
AUSA Dan Graber has been appointed to serve as the Election Officer for the Western District of Wisconsin, which covers Madison and approximately the western 44 counties of the state. AUSAs Zachary Corey and Christopher Ladwig have been appointed to serve as the Election Officers for the Eastern District, which covers Milwaukee and approximately the eastern 28 counties of the state. As Election Officers, in consultation with Justice Department Headquarters in Washington, these AUSAs are responsible for overseeing the handling of complaints of voting rights abuses and election fraud in their respective districts.
“Our system of government is premised upon free, open and fair elections,” said United States Attorney Blader. “The Justice Department will act promptly to protect the integrity of the election process, ensuring that every citizen has the right to vote – and have their vote counted. “
United States Attorney Krueger added, “The right to vote is the foundation of American democracy. We are committed to ensuring that those who seek to interfere with that cherished right are brought to justice.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
In order to respond to complaints of voting rights abuses or election fraud on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, the Election Officers will be on duty in their districts while the polls are open. AUSA Graber can be reached by calling (608) 250-5468. AUSA Corey can be reached by calling (414) 297-1083, and AUSA Ladwig can be reached by calling (414) 297-4103.
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 in Madison can be reached by calling (608) 833-4600. The FBI in Milwaukee can be reached by calling (414) 276-4684.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington 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.
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 the U.S. Attorney’s Offices, the FBI, or the Civil Rights Division.
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United States Attorney's Office Supports Drug Enforcement Administration's Prescription Drug Take Back Day, Oct. 27Read the Press Release
U.S. Attorney Trent Shores applauds the DEA’s National Prescription Drug Take Back Day, October 27, 2018, from 10 a.m. to 2 p.m., at 11 collection sites throughout the Northern District of Oklahoma. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
“I encourage our community to use this opportunity to safely and anonymously turn in outdated and unused prescription drugs, The simple act of safely disposing of outdated and unused prescription drugs helps to stop the spread of addiction and keeps those drugs out of the wrong hands,” said U.S. Attorney Shores.
Last April, Oklahomans located in the 11 counties (Tulsa, Pawnee, Osage, Creek, Washington, Nowata, Rogers, Craig, Mayes, Ottawa, and Delaware Counties) which comprise the federal Northern District of Oklahoma participated in record numbers, resulting in the collection of 1,160 pounds of expired, unused, and unwanted prescription drugs.
Overall, Americans nationwide did their part to drop off a record number of unused, unwanted or expired prescription medications during the DEA’s 15th National Prescription Drug Take Back Day, at close to 6,000 sites across the country. Together with a record-setting amount of local, state and federal partners, DEA collected and destroyed close to one million pounds—nearly 475 tons—of potentially dangerous expired, unused, and unwanted prescription drugs, making it the most successful event in DEA history. This brings the total amount of prescription drugs collected nationwide by DEA since the fall of 2010 to 9,964,714 pounds, or 4,982 tons.
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
The collection sites in the Northern District of Oklahoma are:
• Bartlesville Police Department - 615 S. Johnstone Ave., Bartlesville, OK 74003
• Bristow Police Department – Walmart, 105 W. Highway 16, Bristow, OK 74010
• Fire Station No. 3 - 100 SE Madison Blvd., Bartlesville, OK 74006
• Fire Station No. 4 - 3501 SE Price Rd., Bartlesville, OK 74006
• DEA-Tulsa Resident Office - News On 6 Studios, 303 N. Boston Ave., Tulsa, OK 74103
• BIA-OJS Miami - Northeastern Tribal Health Systems 7600 S. Highway 69A, Miami,
OK 74354
• Miami Nation Tribal Police Department – 3410 P. St., Miami, OK 74354
• Sapulpa Police Department - 20 N. Walnut St., Sapulpa, OK 74066
• Tulsa Police Department – 8310 S. Olympia Ave., Tulsa OK 74132
• Tulsa Police Department - Patrick Henry Elementary, 3820 E. 41st St., Tulsa, OK 74135
• Wyandotte Nation Tribal Police Department – 14 South Main, Wyandotte, OK 74370
The DEA cannot accept needles or sharps. The DEA can accept pills, patches, and tightly sealed liquids.
For more information or to locate a collection site nearest you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.
Two Men Sentenced in Multistate Drug RingRead the Press Release
COEUR D’ALENE – Adam Arrow Weinberger, 57, of Coeur d’Alene, Idaho, and William Morris Antelope, 47, of Cheney, Washington, are the latest sentenced in a multistate drug investigation, U.S. Attorney Bart M. Davis announced. Wednesday, Chief U.S. District Judge B. Lynn Winmill sentenced Weinberger to 92 months in prison, followed by eight years of supervised release, and on Monday sentenced Antelope to 39 months in prison, followed by five years of supervised release.
Weinberger and Antelope are two of nine related individuals under federal indictment in Idaho for multistate drug trafficking. The investigation initially centered on methamphetamine and heroin dealers in Lewiston, Clarkston, and the Nez Perce Indian Reservation. The investigation expanded to distributors bringing methamphetamine and heroin into Idaho from Oregon and Washington. Five defendants linked to the drug ring have already been sentenced:
- Salvador Saucedo, 27, of Milton-Freewater, Oregon, was sentenced to 10 years in federal prison;
- Robin Jo Rose, 31, of Lewiston, Idaho, was sentenced to 10 years in federal prison;
- Andrew Byers, 28, of Craigmont, Idaho, was sentenced to 10 years in federal prison;
- Kyle Seidel, 32, of Lewiston, Idaho, was sentenced to 10 years in federal prison; and,
- Brice Heimgartner, 25, of Clarkston, Washington, was sentenced to 37 months in federal prison.
As part of the investigation, law enforcement officers seized kilograms of pure methamphetamine, heroin, guns and cash during numerous searches and arrests in Idaho, Washington, and Oregon.
Several federal, state and local agencies participated in the investigation and prosecution of these cases, including: the Federal Bureau of Investigation, Lewiston Police Department, Bureau of Indian Affairs, Nez Perce County Prosecutor’s Office, Latah County Prosecutor’s Office, Moscow Police Department, Coeur d’Alene Police Department, Latah County Sherriff’s Office, Coeur d’Alene Tribal Police Department, Idaho State Police – District 2, Nez Perce Tribal Police Department, Blue Mountain Enforcement Narcotics Team, and the Quad Cities Drug Task Force.
These indictments are the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF), which includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
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Two Men Charged with Distributing Heroin in NorthamptonRead the Press Release
BOSTON – Two men were charged today in federal court in Springfield with distributing heroin in Northampton.
Quincy Wilmington, 58, and Eugene Bond, 64, were each charged in separate indictments with distribution and possession with intent to distribute heroin.
According to one indictment, Wilmington distributed heroin on May 21 and June 13, 2018. The second indictment alleges that Bond distributed heroin on May 15, May 30, and Aug. 2, 2018.
The charge provides for a sentence of no greater than 20 years in prison, up to a lifetime of supervised release and a fine of up to $2 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Sean Smith, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Northeast Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Found with Approximately 1,260 Pounds of Liquid Methamphetamine in Norman are Charged with Possession with Intent to DistributeRead the Press Release
OKLAHOMA CITY – ENRIQUE LARA, 36, of Chicago, Illinois, and JASMINE MORALES, 21, of McAllen, Texas, were charged yesterday with possessing with intent to distribute approximately 1,260 pounds of liquid methamphetamine, announced Robert J. Troester of the United States Attorney’s Office for the Western District of Oklahoma.
On October 22, 2018, law enforcement in Norman found approximately 1,260 pounds—or approximately 150 gallons—of liquid methamphetamine in the fuel tank of a semi-trailer truck parked in the parking lot at a Norman hotel. The affidavit in support of the complaint alleges that Lara was the driver and Morales was the passenger of the vehicle. According to the affidavit, the estimated value of the liquid methamphetamine may exceed $3,000,000 in the Oklahoma City area.
If convicted of the methamphetamine offense, each defendant faces a minimum sentence of 10 years’ imprisonment and up to life imprisonment.
This case is the result of an investigation by the Drug Enforcement Administration, the District 21 Drug Task Force, and the Norman Police Department. The U.S. Attorney’s Office for the Western District of Oklahoma is prosecuting this case with the assistance of, and in partnership with, Cleveland County District Attorney Greg Mashburn and his office. Assistant U.S. Attorneys Nicholas J. Patterson and David P. Petermann are prosecuting the case.
Reference is made to court filings for further information.
Turn in your unused pills and medicine on Saturday as part of National Prescription Drug Take Back DayRead the Press Release
After collecting a total of more than 9.9 million pounds of expired, unused and unwanted prescription medications during 15 previous events over the past eight years, the Drug Enforcement Administration expects to reach a total of 10 million pounds collected following the upcoming fall 2018 Take back event. DEA and its national, tribal and community partners will hold the 16th National Prescription Drug Take Back Day across the country on Saturday, October 27.
The service is free and anonymous.
This weekend, more than 5,400 collection sites manned by more than 4,400 partner law enforcement agencies will be open 10 a.m. to 2 p.m. local time. The public can find a nearby collection site at www.DEATakeBack.com or by calling 800-882-9539. (DEA cannot accept liquids, needles or sharps.)
“We know that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet,” said Acting Administrator Uttam Dhillon. “If we reduce the availability of those unused or expired medications through proper disposal, the fewer drugs there are to be misused, and fewer people will be at risk for abuse, addiction, overdose, and even death.”
“We know of many cases where leftover pain pills have led to an opioid addiction,” said U.S. Attorney for the Northern District of Ohio Justin Herdman said. “Properly disposing of these pills is one important step anyone can take to get involved in turning the tide on the opioid epidemic that has caused so much pain here in Ohio.”
The National Prescription Drug Take Back Day Initiative addresses a critical public safety and public health issue. Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Because the Environmental Protection Agency and the Food and Drug Administration have advised the public that flushing their prescription drugs down the toilet or throwing them in the trash pose potential safety and health hazards, DEA launched its prescription drug take back program to encourage the safe disposal of medications.
National Take Back Day has received robust public support since its inception in 2010. Last April, the public turned in 456 tons (912,305 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and nearly 4,700 of its local and tribal partners.
Three Men Indicted for Illegal ReentryRead the Press Release
BOSTON – Three men were charged yesterday in federal court in Boston with illegally reentering the United States after being deported.
Octaviano Boche, 48, a Guatemalan national, was charged with one count of illegal reentry of a deported alien. On Sept. 7, 2018, Boche was encountered by law enforcement in Billerica and determined to be unlawfully present in the United States. Boche was previously deported on April 27, 2016. He is currently in state custody awaiting trial on unrelated charges.
Daniel Brandes-Muniz, 35, a Brazilian national previously residing in Lowell, was charged with one count of illegal reentry of a deported alien. On April 28, 2018, Brandes-Muniz was encountered by law enforcement in Billerica and determined to be unlawfully present in the United States. Brandes-Muniz was previously deported on March 22, 2004. He is currently in state custody serving a sentence on unrelated charges.
Jose Urena Vasquez, 42, a Dominican national previously residing in Lawrence, was charged with one count of illegal reentry of a deported alien. On Sept. 13, 2018, law enforcement in Middleton encountered Urena Vasquez and determined him to be illegally present in the United States. Urena Vasquez was previously deported on March 25, 2009. He is currently in state custody awaiting trial on unrelated charges.
Boche faces a sentence of up to two years in prison, one year of supervised release, and a fine of $250,000. Brandes-Muniz faces a sentence of up to 10 years in prison, three years of supervised release, and a fine of up to $250,000. Urena Vasquez faces a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $250,000. All three defendants will be subject to deportation upon completion of any sentences imposed. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Todd M. Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Colombian Nationals Plead Guilty to Participating in Human Smuggling Event that Resulted in the Rape and Murder of Cuban NationalsRead the Press Release
Three Colombian nationals have pleaded guilty to a four-count federal indictment in the Southern District of Florida stemming from their roles in a scheme to smuggle illegal aliens from Colombia into the United States, which resulted in the rape of one and the death of two Cuban nationals.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Carlos Emilio Ibarguen Palacios, 27, pleaded guilty today before the Honorable Darrin P. Gayles of the Southern District of Florida to one count of conspiracy to encourage and induce aliens to come to the United States resulting in death as well as three counts of encouraging and inducing aliens to come to the United States resulting in death and placing in jeopardy the lives of any person. Fredis Valencia Palacios, 30, pleaded guilty on Sept. 25, 2018 and Jhoan Stiven Carreazo Asprilla, 23, pleaded guilty on Oct. 24, 2018 before the Honorable Jose E. Martinez of the Southern District of Florida to the same charges.
The three defendants, all Colombian nationals, were previously extradited to the United States in 2017 and 2018 to face these charges.
“These defendants’ depraved acts—which included sexually assaulting and murdering one victim, cutting the throat of a second, and leaving a third for dead in the ocean—underscore the dangers inherent in alien smuggling,” said Assistant Attorney General Benczkowski. “This prosecution of three smugglers from Colombia reflects our resolve to bring to justice those who exploit our immigration laws and prey upon aliens seeking to illegally enter the United States.”
“The high seas do not protect criminals from prosecution in the United States,” said U.S. Attorney Fajardo Orshan. “When human smugglers knowingly plan to violate U.S. immigration laws and expose illegal aliens to grave danger during their arduous journey, the U.S. Attorney’s Office, with the assistance of our domestic and foreign law enforcement partners, stand ready to prosecute the offenders on American soil.”
“Today’s guilty plea by Ibarguen Palacios brings to justice another defendant in one of the most horrific cases investigated by HSI Miami,” said HSI Special Agent in Charge Selby. “This is exactly what we are constantly warning the public of when it comes to the dangers of human smuggling. Although these pleas will not return the victims to their loved ones, it does bring justice for their friends and family. HSI will continue to aggressively investigate, pursue and shut down these organizations that are involved in this heinous criminal act.”
According to the court record, including agreed upon factual proffers, since 2014, Valencia Palacios, Carreazo Asprilla, and Ibarguen Palacios, and their co-defendant organized and arranged the unlawful smuggling of illegal aliens, transporting them across Colombia toward the Panamanian border, en route to the United States. In 2016, three Cuban nationals arranged with, and paid, the defendants to transport them from Colombia to Panama, as they traveled to the United States, intending to arrive in Miami.
On Sep. 7, 2016, during a portion of their journey, the three victims – two men and a woman – were delivered by Valencia Palacios to a boat captained by Ibarguen Palacios, and Carreazo Asprilla, to begin their journey to Panama. During the boat trip, Ibarguen Palacios and Carreazo Asprilla pulled a knife and a gun, respectively, on the victims. Ibarguen Palacios tied the wrists of the two male passengers and then threw them overboard, anchoring them with rope to the inside of the boat. The surviving male victim reported that he heard Ibarguen Palacios and Carreazo Asprilla sexually assault the female victim before cutting her throat and murdering her. The surviving victim also heard Ibarguen Palacios and Carreazo Asprilla cut the other male victim’s throat, killing him. While that was happening, the survivor managed to free himself and escape by swimming away. Ibarguen Palacios and Carreazo Asprilla left him for dead.
The next day, a local fisherman discovered the survivor, who was subsequently rescued by the Colombian Navy. The survivor directed the Colombian authorities to the place where the murders happened, and the Colombian authorities retrieved the bodies. Their throats and bellies had been cut open and they were tied up together and submerged in the water. The co-defendants were subsequently located and arrested.
Sentencing is scheduled for Valencia Palacios on Nov. 28, and for Carreazo Asprilla and Ibarguen Palacios on Jan, 4, 2019, all before U.S. District Judge Martinez.
This case was investigated by HSI Miami, with assistance from the HSI Bogota field office. The Government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation. The Criminal Division’s Office of International Affairs provided significant support with the defendants’ extradition. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case is being prosecuted by Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida.
Three Colombian Nationals Plead Guilty to Participating in Human Smuggling Event that Resulted in Rape and Murder of Cuban NationalsRead the Press Release
Three Colombian nationals have pleaded guilty to a four-count federal indictment in the Southern District of Florida stemming from their roles in a scheme to smuggle illegal aliens from Colombia into the United States, which resulted in the rape of one and the death of two Cuban nationals.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Carlos Emilio Ibarguen Palacios, 27, pleaded guilty today before the Honorable Darrin P. Gayles of the Southern District of Florida to one count of conspiracy to encourage and induce aliens to come to the United States resulting in death as well as three counts of encouraging and inducing aliens to come to the United States resulting in death and placing in jeopardy the lives of any person. Fredis Valencia Palacios, 30, pleaded guilty on Sept. 25, 2018 and Jhoan Stiven Carreazo Asprilla, 23, pleaded guilty on Oct. 24, 2018 before the Honorable Jose E. Martinez of the Southern District of Florida to the same charges.
The three defendants, all Colombian nationals, were previously extradited to the United States in 2017 and 2018 to face these charges.
“The high seas do not protect criminals from prosecution in the United States,” said U.S. Attorney Fajardo Orshan. “When human smugglers knowingly plan to violate U.S. immigration laws and expose illegal aliens to grave danger during their arduous journey, the U.S. Attorney’s Office, with the assistance of our domestic and foreign law enforcement partners, stand ready to prosecute the offenders on American soil.”
“These defendants’ depraved acts—which included sexually assaulting and murdering one victim, cutting the throat of a second, and leaving a third for dead in the ocean—underscore the dangers inherent in alien smuggling,” said Assistant Attorney General Benczkowski. “This prosecution of three smugglers from Colombia reflects our resolve to bring to justice those who exploit our immigration laws and prey upon aliens seeking to illegally enter the United States.”
“Today’s guilty plea by Ibarguen Palacios brings to justice another defendant in one of the most horrific cases investigated by HSI Miami,” said HSI Special Agent in Charge Selby. “This is exactly what we are constantly warning the public of when it comes to the dangers of human smuggling. Although these pleas will not return the victims to their loved ones, it does bring justice for their friends and family. HSI will continue to aggressively investigate, pursue and shut down these organizations that are involved in this heinous criminal act.”
According to the court record, including agreed upon factual proffers, since 2014, Valencia Palacios, Carreazo Asprilla, and Ibarguen Palacios, and their co-defendant organized and arranged the unlawful smuggling of illegal aliens, transporting them across Colombia toward the Panamanian border, en route to the United States. In 2016, three Cuban nationals arranged with, and paid, the defendants to transport them from Colombia to Panama, as they traveled to the United States, intending to arrive in Miami.
On Sep. 7, 2016, during a portion of their journey, the three victims – two men and a woman – were delivered by Valencia Palacios to a boat captained by Ibarguen Palacios, and Carreazo Asprilla, to begin their journey to Panama. During the boat trip, Ibarguen Palacios and Carreazo Asprilla pulled a knife and a gun, respectively, on the victims. Ibarguen Palacios tied the wrists of the two male passengers and then threw them overboard, anchoring them with rope to the inside of the boat. The surviving male victim reported that he heard Ibarguen Palacios and Carreazo Asprilla sexually assault the female victim before cutting her throat and murdering her. The surviving victim also heard Ibarguen Palacios and Carreazo Asprilla cut the other male victim’s throat, killing him. While that was happening, the survivor managed to free himself and escape by swimming away. Ibarguen Palacios and Carreazo Asprilla left him for dead.
The next day, a local fisherman discovered the survivor, who was subsequently rescued by the Colombian Navy. The survivor directed the Colombian authorities to the place where the murders happened, and the Colombian authorities retrieved the bodies. Their throats and bellies had been cut open and they were tied up together and submerged in the water. The co-defendants were subsequently located and arrested.
Sentencing is scheduled for Valencia Palacios on Nov. 28, and for Carreazo Asprilla and Ibarguen Palacios on Jan, 4, 2019, all before U.S. District Judge Martinez.
This case was investigated by HSI Miami, with assistance from the HSI Bogota field office. The Government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation. The Criminal Division’s Office of International Affairs provided significant support with the defendants’ extradition. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case is being prosecuted by Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida and Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Telemarketers Arrested on Charges of Defrauding Elderly VictimsRead the Press Release
PHOENIX – On Oct. 23, 2018 a federal grand jury in Phoenix returned a 24-count indictment for violations of the federal mail fraud statute, and for conspiracy to violate the mail and wire fraud statutes, against: Brandon Trevor Ball, 46, of Phoenix, Ariz.; Trevor Wesley Gabler, 28, of Phoenix, Ariz.; Gordon Lynn Hardy, 55, of Chandler, Ariz.; Jackie Nikiel Whitley, 37, of Phoenix, Ariz.; and Brian Lee Gibson, 36, of Tempe, Ariz.
The indictment alleges that the five defendants worked together in a telemarketing operation to defraud elderly consumers of over $1 million. In particular, the indictment alleges that when speaking via telephone with the victims, the defendants and their employees used false names and misrepresented the nature of a purported investment opportunity and the location of the business. All defendants were arrested and arraigned yesterday. Defendants Gabler, Ball, Hardy and Gibson have been temporarily detained pending a detention hearing.
“The Secret Service is committed to aggressively investigating financial crimes cases,” said Special Agent in Charge Cristina Beloud of the Secret Service Phoenix Field Office. “This case highlights our outstanding relationship with the U.S. Attorney’s Office, U.S. Postal Inspection Service, and the Phoenix Police Department. We will continue to work with our law enforcement partners to disrupt organized criminal groups in the state of Arizona who attempt to defraud our most vulnerable citizens.”
A conviction for mail fraud in which the defendants target elderly victims through telemarketing carries an enhanced maximum penalty of 30 years, a $250,000 fine (or twice the value of the loss), or both imprisonment and a fine.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The investigation preceding the indictment was conducted by the United States Secret Service and the Phoenix Police Department, with assistance from the United States Postal Inspection Service and the Special Investigations Section of the Arizona Attorney General’s Office. The prosecution is being handled by Gary M. Restaino, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-1420-PHX-SPL
RELEASE NUMBER: 2018-139_Gabler et al
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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.
Stark County man previously convicted of manslaughter indicted for having a firearm and ammunitionRead the Press Release
A Stark County man previously convicted of manslaughter was indicted for having a firearm and ammunition.
Michael Winland, 40, was arrested Friday and a federal indictment was unsealed charging him with one count of being a felon in possession of a firearm and ammunition.
Winland on Aug. 20 possessed a Taurus .45 revolver and ammunition, despite previous convictions in the Wayne County Court of Common Pleas for involuntary manslaughter, kidnapping, aggravated burglary and aggravated robbery, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than maximum.
This case is being prosecuted by Assistant U.S. Attorney Aaron P. Howell following an investigation by the Beach City Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.
An indictment is only a charge and not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Shelby County Man Arrested on Child Exploitation ChargesRead the Press Release
BEAUMONT, Texas — A 21-year-old Joaquin, Texas man has been arrested on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Alexander Nathan Barter was arrested on Friday, Oct. 19, 2018, in Joaquin, and appeared today in Beaumont before U.S. Magistrate Judge Keith Giblin for an initial appearance.
Barter has been charged in a federal complaint with attempted coercion and enticement and will return to court on Tuesday, Oct. 30, 2018 for detention and preliminary hearings.
This case is being prosecuted 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 Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's 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.
If convicted, Barter faces up to 20 years in federal prison.
This case is being investigated by Homeland Security Investigations in Lufkin, Beaumont, and Houston, Texas; Homeland Security Investigations Cocoa Beach, Florida, Child Exploitation Task Force; Brevard County Sheriff’s Office (Florida); Nacogdoches Police Department; Texas Department of Public Safety; Customs and Border Protection Air Units; and Shelby County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Marisa Miller.
It is important to note that an arrest, indictment, or complaint should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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Saint Albans Man Sentenced to Federal Prison for Fentanyl ChargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Travis Raynard Edward, 30, of Saint Albans was sentenced yesterday to 8 years in prison for possession with intent to distribute fentanyl. Stuart commended the efforts of the Drug Enforcement Administration AHIDTA Task Force.
“Fentanyl is deadly,” said United States Attorney Mike Stuart. “As part of Operation Synthetic Opioid Surge (SOS), we are prosecuting every possible case involving the distribution of fentanyl, regardless of quantity, in Cabell and Kanawha Counties. Through these prosecutions we will impact the supply of deadly synthetic opioids into our hardest hit communities and most importantly save lives.”
Edwards pled guilty in July, admitting that he possessed with intent to distribute 40 grams or more of fentanyl. On March 2, 2018, DEA task force officers executed a search warrant at Edwards’ apartment on Shadyside Road in Saint Albans. They seized 195 grams of fentanyl, two firearms, and more than $4,000. Edwards has prior felony convictions of unarmed robbery and delivery of a controlled substance.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Joshua C. Hanks is responsible for the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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