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6 December 2018
Convicted Felon Sentenced to Prison for Heroin and Gun CrimesRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 15 years in prison for trafficking heroin while armed.
According to court documents, Vernon Lewis Petway, 39, was caught in possession of roughly 97 grams of heroin and a firearm after transporting the heroin by bus from New York City to Norfolk. At the time of the arrest Petway was on supervision for previous federal drug and gun convictions, and as a convicted felon is prohibited from carrying firearms.
The case is part of Operation Sand Dragon, a joint operation run by the Norfolk Police Department with assistance from the DEA, ATF, Homeland Security Investigations, and the Chesapeake Police Department. After an eight-month-long investigation, law enforcement arrested 44 suspects for their roles in distributing drugs. Twelve of the suspects were involved in gang activity, which was a major focus of the investigation. During the investigation, law enforcement recovered roughly 11 ounces of heroin, 3 pounds of cocaine, 3 pounds of marijuana, 24 ecstasy pills, and 9 grams of methamphetamine. The total street value of the drugs was over $190,000. Law enforcement also recovered 12 firearms and over $85,000 in cash.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney William B. Jackson prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department reinvigorated PSN in 2017 as part of a renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-34.
Connecticut Crime Prevention Organization Receives Justice Department Project Safe Neighborhoods AwardRead the Press Release
Acting Attorney General Matthew Whitaker and U.S. Attorney John H. Durham announced that a Connecticut crime prevention organization is the recipient of one of 16 awards presented today during the 2018 Project Safe Neighborhoods (PSN) National Conference in Kansas City, Missouri. The awards recognize individuals and groups for their dedication and contribution to the success of PSN, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
“Project Safe Neighborhoods is making our prosecutions more targeted and more effective – and that makes the American people safer,” said Acting Attorney General Whitaker. “Today the Department recognizes 16 examples of those who go above and beyond the call of duty in using PSN to reduce violent crime. We had a lot of impressive nominees, but even with tough competition, these 16 stood out. I want to thank each one of them for their service and congratulate them on a job well done.”
The Justice Education Center, Inc., based in West Hartford, received a PSN award for Innovative Prevention/Reentry Strategy. This award is given to those who have made an impact to reduce offenses, prevent crime by mitigating risk, and prevent recidivism on the part of those reintegrating into society.
Specifically noted during today’s ceremony, the Justice Education Center and the Connecticut U.S. Attorney’s Office developed the Career Pathways Technology Collaborative, a program designed to provide skilled vocational, credentialed training to at-risk youth, 16 to 24 years of age. Career Pathways enables young people to acquire credits toward their high school diploma or GED, obtain entry or competitive level employment, or seek further technology certifications through union or community college programs. This collaborative is deeply community-based, as the Justice Education Center has developed partnerships with local boards of education, community colleges, workforce development boards, and unions. Of the 133 youths enrolled in the program since 2015, more than 70 percent received credit towards graduation. The success of the partnership between the Justice Education Center and the U.S. Attorney’s Office for the District of Connecticut has fostered the development of new investments in education, risk reduction and career readiness – with PSN funds serving as critical leverage for additional state, municipal and foundation support.
“The Justice Education Center is dedicated to finding creative ways to prevent crime, improve public safety and strengthen our communities in Connecticut,” said U.S. Attorney Durham.” “For more than a decade, the Justice Education Center and U.S. Attorney’s Office have collaborated closely on initiatives to reduce violent crime and curb juvenile crime. I congratulate the Justice Education Center – under the dedicated, tireless and enthusiastic leadership of its executive director Sherry Haller – for this well-deserved national recognition.”
Concord Man Pleads Guilty to Unlawfully Possessing Firearms and AmmunitionRead the Press Release
CONCORD - Nathaniel Carr, 24, of Concord, pleaded guilty to unlawful possession of firearms and ammunition by a prohibited person, announced United States Attorney Scott W. Murray.
According to court documents and statements made in court, on August 1, 2018, a police officer saw a Chevrolet Trailblazer with expired temporary license plates, driven by Carr, exit a convenience store’s parking lot on Loudon Road. A police officer later located the vehicle, with Carr sitting in the driver’s seat, in another parking lot on Loudon Road. At that location, the police officer parked behind the Trailblazer. When Carr opened the driver’s door, the police officer saw a .22 caliber revolver in the pocket of the driver’s door and a box of .22 caliber ammunition in front of the front passenger seat. As a previously-convicted felon, Carr is prohibited by federal law from possessing firearms or ammunition.
While later executing a warrant to search Carr’s residence on August 24, 2018, the Concord Police Department found 20 rounds of .380 caliber ammunition and 31 rounds of .38 caliber ammunition in a safe; a .380 caliber pistol and 30 rounds .380 caliber ammunition in a backpack; and a .12 gauge shotgun shell in Carr’s bedroom.
Carr will be sentenced on March 13, 2019.
“Keeping guns out of the hands of criminals is necessary in order to keep our community safe,” said U.S. Attorney Murray. “In order to reduce violent crime, we will work closely with our law enforcement partners to identify, prosecute, and incarcerate criminals who possess firearms.”
This matter was investigated by the Concord Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Anna Krasinski is prosecuting the case.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Cleveland man indicted for lying about domestic violence conviction three times this year while trying to purchase a firearmRead the Press Release
A Cleveland man was indicted for lying about his conviction for domestic violence three times this year while trying to purchase a firearm.
Joseph Williams, 25, was indicted on three counts of making a false statement during the purchase of a firearm.
Williams was convicted in 2011 of one misdemeanor count of domestic violence in Cleveland Heights Municipal Court.
Williams falsely stated he had not been convicted of domestic violence when he attempted to purchase firearms from Fin Feather Fur in Middleburgh Heights on Aug. 31, Atwell’s Police & Fire Equipment in Painesville on Sept. 5 and Atlantic Gun & Tackle in Bedford Heights on Oct. 27, according to the indictment, according to the indictment.
He was stopped from buying the firearm each time.
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 the maximum.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Danielle K. Angeli.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Chicago Woman Sentenced to Nearly 4 Years for Multi-Million Dollar Fraud Involving Bogus Event Ticket BusinessRead the Press Release
CHICAGO — A Chicago woman has been sentenced to nearly four years in federal prison for operating a multi-million dollar fraud scheme that duped investors into believing she could earn profits on the secondary market for concert and sports tickets.
TRACY MONTI fraudulently obtained more than $5 million from investors by misrepresenting that she could purchase tickets for sporting events and concerts from primary market sources at face value or at a discount through purported connections in the event business and then re-sell the tickets for a profit on the secondary market. In reality, Monti used the victims’ funds to purchase various items for herself, including a house in Chicago, a Dodge Challenger, tattoos, vacations, and shopping sprees at Victoria’s Secret and Neiman Marcus. Monti also made Ponzi-type payments to early investors.
Monti, 44, pleaded guilty earlier this year to one count of wire fraud. U.S. District Judge Manish S. Shah on Tuesday sentenced Monti to 46 months in prison and ordered her to pay $4,997,958 in restitution to victims.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Chicago office of the Internal Revenue Service Criminal Investigation Division.
The fraud scheme began in 2010 and continued until 2015. Monti misrepresented to investors that she had business relationships with multiple primary sources, such as event promoters and venues, through which she could purchase tickets at face value before re-selling them for a profit. Those relationships did not actually exist. Monti victimized more than ten investors, one of whom took money out of his pension to invest in Monti’s scam.
“This case involves a brazen and merciless scheme to defraud,” Assistant U.S. Attorney Sheri H. Mecklenburg argued in the government’s sentencing memorandum. “Defendant cast a wide net, seeking victims wherever and whenever she could.”
California man indicted for transporting five illegal aliensRead the Press Release
A California man was indicted for transporting five people in the country illegally.
Yusnier Perez-Canet, 20, was indicted on five counts of transportation of aliens not lawfully in the United States.
Perez-Canet on Sept. 26 was transporting five people who were in the country illegally, according to the indictment.
If convicted, the defendant's sentence will be determined by the Court after reviewing 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 the maximum.
The investigating agency in this case is the U.S. Border Patrol. The case is being handled by Assistant U.S. Attorneys Ashley A. Futrell and Thomas P. Weldon.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Man Indicted for Trafficking Large Amounts of Fentanyl and Cocaine in Northampton CountyRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Miguel Gonzalez Segovia 33, of Mira Loma, California was charged today by indictment for trafficking illegal drugs in Northampton County, Pennsylvania on November 13, 2018. Gonzalez Segovia is specifically charged with one count of possessing with the intent to distribute 5 kilograms or more of cocaine and 400 grams or more of fentanyl, the deadly synthetic opioid.
“We at the Department of Justice seek to reduce the supply of illegal drugs in the United States by aggressively investigating and prosecuting national and international drug trafficking organizations,” said U.S. Attorney McSwain. “This will continue to be a high priority for our Office.”
“Segovia is accused of possessing with the intent to distribute a substantial amount of cocaine and fentanyl, both of which are dangerous drugs, the latter of which is a deadly synthetic opioid that was identified in over 67% of the 5,456 overdose deaths in Pennsylvania in 2017,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The primary mission of our office is to target significant drug traffickers that are operating in our area and the nation at large.”
If convicted of all counts, Gonzalez Segovia faces a maximum sentence of life imprisonment, with a 10-year mandatory minimum term of imprisonment, a mandatory minimum of 5-years supervised release up to a lifetime of supervised release, a $10,000,000 fine, and a $100 special assessment.
The case was investigated by the Drug Enforcement Administration and the Pennsylvania State Police. The case is being prosecuted by Assistant United States Attorney Kelly A. Lewis Fallenstein.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
CEO of Miami Investment Management Firm Charged in Manhattan Federal Court with FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of a criminal complaint charging FABIO BRETAS DE FREITAS with commodities fraud, wire fraud, bank fraud, and identity theft in connection with BRETAS’s operation of two related investment companies, Phynance Capital Management LLC (“Phy Capital”) and Absolute Experience LLC (“Absolute”). BRETAS is alleged to have misrepresented to investors the trading activity and use of funds invested in Phy Capital and Absolute, and, after acquiring investor funds, misappropriated a large portion of those funds for his personal benefit. Additionally, after the initiation of an audit of BRETAS’s companies by the Commodity Futures Trading Commission (“CFTC”) and the National Futures Association (“NFA”), BRETAS allegedly attempted to deceive those regulators by impersonating a victim-investor using a fraudulent email account appearing to belong to that victim, but in fact controlled by BRETAS. BRETAS was arrested this morning in Miami and will be presented before a U.S. Magistrate Judge in the Southern District of Florida later today.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Fabio Bretas de Freitas used sham investment companies to steal both the money and the identities of his would-be investors. Thanks to the dedication of the FBI, and with the support and assistance of the CFTC and NFA, Bretas’s alleged scheme has collapsed around him and he will now be held to account.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “The defendant obtained more than $5.5 million from people who invested their money in good faith. But as alleged, instead of investing those funds as he had promised, the defendant used it to cover his own personal expenses, even going so far as to impersonate one of his own victims to deceive investigators. Bretas’s arrest should serve as a stark reminder that those who seek to manipulate our financial systems for their personal gain will be identified and disrupted.”
According to the Complaint filed today in Manhattan federal court[1]:
BRETAS started Phy Capital and Absolute in 2016, and ultimately obtained more than $5.5 million from various investors (the “Victims”). While BRETAS conducted a minimal level of trading, his predominant use of his companies was the theft of investor money, using it to cover his personal expenses, and transferring investor funds abroad. When his regulators, the CFTC and NFA, initiated an audit of BRETAS in 2017, BRETAS lied about his affiliation with Absolute, falsely claimed that his victims’ funds reflected mere loans to his company, lied about the use of those funds and the solicitation of investments, and ultimately created a fraudulent email account for the purpose of impersonating one victim in communications with the NFA.
BRETAS, 53, of Miami, Florida, was arrested this morning in Miami. BRETAS is charged with wire fraud, which carries a maximum sentence of 20 years in prison; bank fraud, which carries a maximum sentence of 30 years in prison; commodities fraud, which carries a maximum sentence of 25 years in prison; and aggravated identity theft, which carries a mandatory sentence of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
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This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Andrew C. Adams and Benet Kearney are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
CEO Charged with Wire Fraud Arrested at SFORead the Press Release
SAN FRANCISCO – Brandon Frere was charged with wire fraud on December 5, 2018, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation, Special Agent in Charge John F. Bennett.
According to the criminal complaint, Frere, 41, of Sonoma County, is alleged to have used various companies that he controlled to operate a fraudulent student loan debt relief scheme to unjustly enrich himself and his family members from 2014 to November 2018. An affidavit filed by an FBI special agent in connection with a criminal complaint alleges that Frere targeted recipients of federal student loans who were often struggling to make payments and devised a scheme to steal millions of dollars from these victims. Frere is the President, Chief Executive Officer, Secretary, and primary shareholder of American Financial Benefits Center, Ameritech Financial, and Financial Education Benefits Center (collectively “the Companies”). The Companies allegedly collected advance fees of approximately $600 to $800 per victim, purportedly to prepare and submit documents to enroll consumers in the Public Service Loan Forgiveness program, income-driven repayment program, and other alternative repayment plans with the U.S. Department of Education. Frere and the Companies also allegedly collected enrollment fees ranging from $100 to $1,200, as well as monthly fees ranging from $49 to $99 for a so-called financial education membership program.
The affidavit describes a complex, multi-faceted scheme to defraud. As part of the alleged scheme, Frere’s Companies made misrepresentations to the victims concerning their ability to obtain lower fixed payments and loan forgiveness. Employees of defendant’s companies were trained to encourage victims to misrepresent their family size so that they could be enrolled in programs for which they were not eligible. Frere’s companies are also alleged to have misrepresented the nature and purpose of the fees that consumers would be paying. Victims often were charged recurring monthly fees for the “financial education” membership program. These fees were encompassed within the program costs quoted to consumers during sales calls, but agents represented that the fee was tied to consumers’ enrollment in an alternative repayment plan and that some or all of the monthly payments under “the program” would applied to consumers’ outstanding loan balance. This was false because the monthly fees were not being applied to the victims’ loan balances. Monthly payments, however, would continue to be pulled out of the victim’s bank account for the term of consumer’s student loans, falsely making it appear that the fees were related to their loan repayment.
Frere and the Companies are believed to have collected over $28 million from 2014 to early 2018. The affidavit also alleges that bank records show the dissipation of over $128,000 to airlines, hotels, resorts, casinos, cruise lines, and similar companies; over $202,000 to automotive and motorsports companies; and over $253,000 to companies that provide building, landscaping, and related supplies and services. Frere allegedly directed payments of over $864,000 to members of his family and family-owned businesses. Frere himself allegedly transferred millions of dollars to his personal accounts, including millions of dollars transferred overseas to accounts that he controlled in Andorra and Luxembourg. As recently as last Thursday, Frere is alleged to have looted the business accounts of hundreds of thousands of dollars.
Frere was arrested last night, December 5, 2018, at SFO as he attempted to board a flight to Cancun, Mexico. He made his initial appearance in federal court in San Francisco this morning. Frere is currently being held in the custody of the United States Marshals Service. His next scheduled appearance is at 9:30 AM on December 10, 2018, for a detention hearing before the Honorable Sallie Kim, U.S. Magistrate Judge.
The criminal investigation began after the Federal Trade Commission filed a civil complaint in February 2018 against Frere and the Companies in federal court in Oakland. (Federal Trade Commission v. American Financial Benefits, et al., Case No. CV 18-00806-SBA).
A criminal complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of wire fraud under 18 U.S.C. § 1343, Frere faces a maximum sentence of 20 years in prison, and a fine of $250,000, or not more than the greater of twice the gross gain or twice the gross loss from the fraud. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Scott Joiner is prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the Internal Revenue Service and Federal Bureau of Investigation.
Brooklyn Man Sentenced to 87 Months on Firearm and Drug ConvictionsRead the Press Release
ALBANY, NEW YORK –Emmanuel Philippe, age 23, a citizen of Haiti residing in Brooklyn, New York, was sentenced today to 87 months in prison for possessing a firearm in furtherance of a drug trafficking crime, possessing a firearm and ammunition as a felon, and possessing and intending to distribute crack cocaine.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Saratoga Springs Police Chief Gregory Veitch.
Philippe is a lawful permanent resident of the United States and citizen of Haiti. After he completes his term of imprisonment, he will be placed into immigration proceedings.
Philippe was convicted following a 4-day trial in July and August 2018, presided over by United States District Judge Mae A. D’Agostino.
Evidence presented during the trial established that on March 17, 2017, at about 3 a.m., Philippe was the subject of a routine traffic stop, for speeding, on West Avenue near the YMCA in Saratoga Springs, New York. Philippe gave Officers a fake name and a fake Massachusetts driver’s license, and said he was on his way to a hotel in Schenectady, New York.
A Saratoga Springs Police Officer detected the smell of marijuana, and Philippe admitted to having marijuana in his car. Officers ordered Philippe and his passenger out of the car so they could search it. During the search, Philippe and his passenger stood on the side of the road in the presence of Officers.
Philippe became visibly nervous as an Officer searched the trunk, and attempted on several occasions to approach the trunk, falsely claiming that his jacket was inside. Officers asked him to back away from the trunk.
While searching the trunk, an Officer found a plastic bag containing a loaded rifle magazine and rounds of .223 caliber ammunition. As the Officer called her Sergeant over to see what she had found, Philippe took off running, through a snow-covered field, in the direction of the YMCA. Officers quickly and safely arrested Philippe in the YMCA parking lot, and found him in possession of 35 baggies containing crack cocaine.
In the trunk, Officers located a Windham Weaponry semi-automatic rifle, loaded with a 30-round magazine and with its safety turned off; another loaded, 30-round magazine; a total of 165 rounds of Federal .223 caliber ammunition; and 22 rounds of Federal 9 millimeter ammunition. In Philippe’s possession and in the car, Officers also located $1,610 in cash, 2 digital scales, and drug packaging materials.
At the time of the crimes, Philippe had a prior felony conviction for attempted grand larceny, from Saratoga County Court.
This case was investigated by the ATF and Saratoga Springs Police Department, with the assistance of the Saratoga County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Brazilian Man Sentenced for Illegal Alien SmugglingRead the Press Release
ALBANY, NEW YORK – Rosalvo Caetano, age 46, and a citizen of Brazil, was sentenced today to time served (208 days in jail) for transporting two illegal aliens within the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
On May 12, 2018, Caetano drove from Worcester, Massachusetts, to Fort Covington, New York, where he picked up two illegal aliens, both Brazilian citizens, who had secretly crossed the border from Canada. Border Patrol Agents arrested Caetano and his passengers in Malone, New York.
The passengers arrested with Caetano were prosecuted for the misdemeanor offense of entry without inspection.
Gabriel Felipe Dias Prado, age 19, was convicted on May 29, 2018 and sentenced to 20 days in jail. Ilcione Bazoni, also known as Carlos Cousa, age 62, was convicted on June 8, 2018 and sentenced to 45 days in jail.
At the conclusion of today’s sentencing, Caetano was remanded to the custody of the Department of Homeland Security for removal proceedings.
This case was investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Bozeman man sentenced in firearms caseRead the Press Release
BILLINGS—A Bozeman man convicted of being a felon in possession of a firearm was sentenced to 22 months in federal prison and three years supervised release on Wednesday, U.S. Attorney Kurt G. Alme said.
Anthony Jones, 27, pleaded guilty to the charge in August.
U.S. District Judge Susan P. Watters presided at the sentencing. Judge Watters ordered the sentence to be consecutive to a state District Court sentence in Gallatin County.
Jones was convicted in Gallatin County in August 2017 of criminal possession of dangerous drugs, a felony, and as a result, was prohibited from possessing firearms.
In March 2018, an individual bought a 9mm semi-automatic pistol at Livingston pawn shop. A few days later, Livingston police officers responded to an incident a local motel where Jones, the person who had purchased the pistol and another person were present.
In an interview with law enforcement, Jones admitted to possessing the firearm several times before the weekend police responded to the motel incident and had helped load and clean the pistol.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.
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Birmingham Businessman Sentenced to Prison for Obstruction and Submitting Fictitious Instruments to the IRSRead the Press Release
A Birmingham business executive was sentenced to serve 48 months in prison for passing a fictitious financial instrument and obstructing the administration of the Internal Revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, and United States Attorney Louis V. Franklin Sr., of the Middle District of Alabama.
On September 11, 2018, a federal jury convicted Richard Lee Graham, 55, of Gardendale, Alabama, of passing a fictitious financial instrument and obstructing the administration of the internal revenue laws. Evidence presented at trial in September established for the tax years 2006 to 2009, as of 2014, Graham owed approximately $3.6 million in taxes, penalties, and interest. To collect that tax debt, the Internal Revenue Service (IRS) began seizing Graham’s properties. On July 11, 2014, Graham went to the Montgomery IRS Office with a fictitious “International Bill of Exchange” in the amount of $3.6 million, along with false supporting documents, in an attempt to pay his taxes. A short time later, Graham showed up at the Birmingham IRS Office with another fake instrument of the same type and amount and attempted to use it to settle his tax debt. He also had false documents mailed to an IRS employee in an attempt to prove the legitimacy of the phony check-like instrument.
This was Graham’s second conviction for a tax related offense. In 2006, Graham pled guilty to willfully failing to file a tax return.
In addition to the term of imprisonment, U.S. District Court Judge Lawrence S. Coogler ordered Graham to serve five years of supervised release and to pay a $10,000 fine.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Franklin commended agents of IRS-Criminal Investigation, who investigated this case, and the Alabama Department of Revenue, who provided assistance, and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Megan A. Kirkpatrick of the Middle District of Alabama, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Belmont Man Sentenced to 9 Years in Prison for Methamphetamine TraffickingRead the Press Release
CONCORD, N.H. - Joseph C. Callahan, 36, of Belmont, New Hampshire, was sentenced in federal court to 9 years in federal prison for possessing over five grams of methamphetamine with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on July 31, 2017, the Belknap County Special Operations Group executed search warrants at Callahan's residence on Arlene Drive in Belmont. Callahan was arrested at the scene. The searches uncovered approximately 24 grams of actual methamphetamine, suboxone, digital scales, and more than $13,000 in cash. Also recovered at the residence were three stolen firearms.
Callahan previously pleaded guilty on August 30, 2018.
“Even in the midst of the opioid crisis, methamphetamine presents a very serious threat to the safety of our community,” said U.S. Attorney Murray. “We will continue to work each day with our law enforcement partners to identify, prosecute, and incarcerate those who are distributing this very dangerous drug.”
“DEA is committed to bringing to justice those that distribute methamphetamine,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s substantial sentence not only holds Mr. Callahan accountable for his crimes but serves as a warning that DEA and its local, state and federal law enforcement partners will do everything in our power to keep this highly addictive drug off the streets of New Hampshire.”
This matter was investigated by the Belknap County Sheriff's Department, Belmont Police Department, Alton Police Department, Tilton Police Department, Nevada Highway Patrol, Drug Enforcement Administration, and U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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Bank Robber Sentenced to 48 Months in PrisonRead the Press Release
PROVIDENCE, RI – A Fall River man who stole a car in New Bedford in April 2017, and used it later the same day as his getaway vehicle after robbing a bank in Tiverton was sentenced today to 48 months in federal prison.
At the time of his guilty plea, Cody Toolis, 28, admitted to the Court that on April 2, 2018, he stole a car from outside a home in New Bedford. About two hours later he robbed a branch office of Bank Newport in Tiverton of $460 and fled in the stolen vehicle.
According to court documents, at approximately 9:15 AM, Toolis entered the bank and handed a note to a teller that read, “Do not move, I have a gun, need $500 in 20’s, I am desperate.” The teller gave Toolis $460. A witness told police she saw the bank robber leave the bank parking lot in a vehicle that police determined fit the description of the vehicle stolen in New Bedford.
Tiverton Police posted a still-photograph taken from bank surveillance video of the robber on social media. Numerous tips from the public and law enforcement agencies identified the person in the photograph as Cody Toolis. One week later, on April 9, Toolis turned himself in to the Bristol, R.I., Police Department.
Toolis pled guilty in August to one count of bank robbery.
At sentencing today, U.S. District Court Judge John J. McConnell, Jr., sentenced Toolis to 48 in federal prison to be followed by 2 years supervised release. Toolis was ordered to pay $460 restitution to Bank Newport.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 70-87 months. The government recommended the court impose a sentence of 78 months in prison.
Toolis’ sentence is announced by United States Attorney Stephen G. Dambruch, Tiverton Police Chief Patrick W. Jones, Special Agent in Charge of the FBI Boston Division and Harold H. Shaw.
The case was prosecuted by Assistant U.S. Attorney Denise M. Barton.
The matter was investigated by the Tiverton Police Department and the FBI.
United States Attorney Stephen G. Dambruch acknowledges and thanks the Fall River, New Bedford, and Bristol Police Departments for their assistance in the investigation and preparation of this case for prosecution in U.S. District Court.
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Baltimore Man Pleads Guilty to Running Tax Refund Scam in Central New YorkRead the Press Release
SYRACUSE, NEW YORK – Arkmallah Hilliard, age 38, of Baltimore, Maryland, pled guilty today to conspiring to defraud the United States and admitted to receiving more than $400,000 as a result of filing hundreds of fraudulent tax returns.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge James D. Robnett, Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office; and Special Agent in Charge Leigh-Alistair Barzey, Defense Criminal Investigative Service (DCIS), Northeast Field Office.
In pleading guilty, Hilliard admitted that he conspired with former Utica resident Anas Wilson and others to defraud the IRS by filing false and fraudulent income tax returns in the names of various individuals and thereby obtained tax refunds to which they knew they were not entitled. Hilliard admitted that he used his own bank accounts and bank accounts he controlled that had been opened by co-conspirators to receive the tax refunds, after which Hilliard and others withdrew, spent, and transferred the money for their own purposes. Wilson previously pled guilty to similar charges and is serving a 12-year prison sentence.
Hilliard will be sentenced on May 23, 2019 by Senior United States District Judge Frederick J. Scullin, Jr.
Hilliard faces a maximum sentence of 5 years in prison, a fine of up to the greater of $250,000 or twice the pecuniary gain to the defendant or the loss to any victim, and a term of post-imprisonment supervised release of up to 3 years. Hilliard also faces a forfeiture money judgment of up to $462,107.00, representing the unrecovered proceeds he received as part of the conspiracy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by IRS-CI and DCIS, and is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Badger Woman Previously Convicted of Bank Fraud Sentenced for Throwing Away Mail Sent to Her EmployerRead the Press Release
A woman who threw away a federal garnishment against her wages sent to her employer was sentenced December 4, 2018, to 90 days’ imprisonment.
Terri Cosgrove, age 55, from Badger, Iowa, received the prison term after an August 20, 2018, guilty plea to one count of obstruction of correspondence.
On July 13, 2004, as part of the sentence she received in federal court for committing bank fraud, Cosgrove was ordered to pay $188,708.01 in restitution. After repeated attempts to collect restitution from Cosgrove, the United States attempted to garnish Cosgrove’s wages by contacting her employer. After the employer did not respond to the garnishment letter, law enforcement questioned Cosgrove. Cosgrove told law enforcement that she destroyed the garnishment paperwork sent to her employer because she did not want her wages garnished.
Cosgrove was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Cosgrove was sentenced to 90 days’ imprisonment. She must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Cosgrove continues to owe restitution for her bank fraud. Cosgrove is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Matthew J. Cole and investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service. Court file information at https://ecf.iand.uscourts.gov. The case file number is CR 18-3014 MWB.
The United States Attorney’s Office works to ensure victims are made whole as quickly as possible. If you know someone who owes federal restitution and may have assets available to satisfy their restitution obligation, you are urged to call 319-731-4080.
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Auburn Man Charged with Embezzling from Labor UnionRead the Press Release
BOSTON – An Auburn man was arrested today and charged in federal court in Worcester in connection with embezzling from a labor union.
Ivar Carlson, 58, was charged with one count of embezzlement from a labor union. He appeared in federal court in Worcester today and was released on conditions.
According to the charging document, Carlson was the former business agent and treasurer for Local B-395 of the International Alliance of Theatrical Stage Employees (IATSE), which represented workers at the DCU Center in Worcester. It is alleged that from around March 2007 until September 2016, Carlson embezzled approximately $37,014 belonging to Local B-395 by writing checks from the Local B-395’s bank account, cashing those checks, and using the cash for his own personal expenses.
Carlson faces a sentence of no greater than five years in prison, up to three years of supervised release and a fine of up to $10,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jonathan Russo, District Director, U.S. Department of Labor, Office of Labor-Management Standards, made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Armstrong County Man Pleads Guilty to Illegal Possession of 22 Firearms and Unlawful Sale of 4 Stolen FirearmsRead the Press Release
PITTSBURGH, PA – An Armstrong County resident pleaded guilty on Monday in federal court to charges of violating the federal firearms laws, United States Attorney Scott W. Brady announced today.
Jared T. Wolfe, age 45, of Ford City, Pennsylvania, pleaded guilty to unlawfully possessing 22 firearms while being an unlawful user of heroin and Suboxone. Federal law prohibits unlawful users of controlled substances from possessing firearms. Wolfe also pleaded guilty to the unlawful possession, sale, or disposal of stolen firearms before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that in and around April 2015, to in and around October 2015, Mr. Wolfe unlawfully possessed 22 firearms (eight rifles and 14 pistols) while he was addicted to and unlawfully using heroin and Suboxone, both of which are controlled substances. Mr. Wolfe admitted to the Court that on July 9, 2015, and on July 12, 2015, he possessed, sold, and disposed of one shotgun and three rifles, which he knew or had reasonable cause to know were stolen from a residence in Castle Shannon, Allegheny County.
Judge Fischer scheduled sentencing for April 9, 2019 at 9 a.m. The law provides for a maximum total sentence of up to 30 years in prison, a fine of up to $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government. This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), detectives from the Allegheny County Police Department, and officers from the Castle Shannon Police Department conducted the investigation leading to the plea in this case.
Albuquerque Man Pleads Guilty to Federal Bank Robbery ChargesRead the Press Release
ALBUQUERQUE – Ryan Schorr, 28, of Albuquerque, N.M., pled guilty today in federal court to robbing two branches of US Bank in New Mexico in Sept. and Oct. 2017.
The FBI arrested Schorr in April 2018, for robbing the US Bank located at 2015 Eubank Blvd on Sept. 21, 2017, and robbing the US Bank located at 3801 Isleta Blvd on Oct. 3, 2017. According to court documents, Schorr robbed both banks by giving a handwritten note to the bank teller stating that he had a gun and was demanding money. FBI agents located Schorr with the help of witnesses who were able to identify Schorr in security camera footage taken at both bank robberies.
Schorr will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Schorr faces a statutory maximum penalty of 20 years in federal prison and a $250,000 fine.
This case was investigated by the Albuquerque office of the FBI. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case.
Advertising Executive Sentenced to Forty Years in Federal Prison for Fraud SchemeRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that U.S. District Judge Elizabeth Kovachevich today sentenced Gary Todd Smith (49, Fayetteville, North Carolina) to 40 years in federal prison for wire fraud and conspiracy to commit wire and mail fraud. The court also ordered Smith to forfeit $63 million, an amount traceable to proceeds of the offense. Smith had pleaded guilty on June 7, 2017.
According to court records, Smith ran Smith Advertising, which turned into a massive fraud scheme. Smith borrowed money from more than 150 people, and each earlier loan was repaid from subsequent loans. Smith lied about the purpose of the loans, and he and his co-conspirators created fake documents to mask the scheme. Over the course of the five-day sentencing hearing, the court heard from more than 50 victims who described the devastation wrought upon their lives by Smith’s massive fraud scheme. The victims suffered bankruptcies, loss of their homes, loss of retirement funds, and loss of their children’s education funds.
“This was a crime motivated by greed and a desire to fund an extravagant lifestyle,” said U.S. Attorney Chapa Lopez. “We will continue to work with our law enforcement partners to vigorously prosecute those who defraud and steal from honest, hardworking Americans.”
“This investigation and subsequent sentencing exemplifies the strength of the federal law enforcement collaboration with the U.S. Attorney’s Office,” said Patrick Henry, Assistant Special Agent in Charge of the U.S. Secret Service Tampa Field Office. “Each agency involved brought to bear its talent, resources, and commitment to mission. The Secret Service remains dedicated to aggressively protecting our nation and its citizens from financial fraud.”
“With more than 100 victims in this case, our agents and analysts worked tirelessly to ensure justice was served,” said Eric W. Sporre, Special Agent in Charge of the FBI Tampa Division. “This investigation shows how greed can consume everything in its path and why any suspicions of financial fraud should be reported immediately to authorities.”
This case was investigated by the United States Secret Service and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.
Acting Attorney General Matthew G. Whitaker Recognizes Outstanding Contributions to Project Safe Neighborhoods in 2018 Awards CeremonyRead the Press Release
Today, Acting Attorney General Matthew G. Whitaker hosted the 2018 Project Safe Neighborhoods (PSN) National Conference’s Award Ceremony in Kansas City, Missouri, to recognize individuals, task forces, and organizations for their dedication and contribution to the success of PSN.
"Project Safe Neighborhoods is making our prosecutions more targeted and more effective—and that makes the American people safer," said Acting Attorney General Whitaker. "Today the Department recognizes 16 examples of those who go above and beyond the call of duty in using PSN to reduce violent crime. We had a lot of impressive nominees, but even with tough competition, these 16 stood out. I want to thank each one of them for their service and congratulate them on a job well done."
This year, 16 awards were presented in six categories:
The award for Outstanding Individual Contribution to the PSN Program is the Department’s award to those in law enforcement who individually pioneered this frontier of justice.
Robert C. Troyer
Former United States Attorney
District of Colorado
Former United States Attorney Robert Troyer helped create and lead one of the very first Crime Gun Intelligence Centers (CGICs) in the country. His tireless support of the CGIC in Denver, Colorado, was instrumental to its success. As a result of Troyer’s vision, leadership, and commitment to violent crime reduction, two additional CGICs are now operating in Colorado, enabling quick reaction to and revealing new connections between gun crimes being committed in the most violent places in the state. The CGIC approach Troyer pioneered serves as a national model for effectively using NIBIN, gun shot detection systems, training and other intelligence to identify current shooters and ensure their prosecution in the most appropriate jurisdiction. The ATF now has CGICs in each of its 25 field offices and Troyer has consulted with U.S. Attorneys’ offices nationwide as they have integrated CGICs into their PSN programs. His effort and energy for this violent crime reduction strategy have had a significant impact not only in the District of Colorado, but nationwide.
Captain Paul Lusczynski
Violent Crime Bureau
Tampa Police Department
Middle District of Florida
In response to a significant rise in shootings in Tampa, Florida, Captain Paul Lusczynski designed and implemented a strategy known as the Violent Impact Player (VIP) program, which has had a direct and substantial impact on driving down violent crime in Tampa. Captain Lusczynski studied lessons learned from targeted and prioritized enforcement strategies throughout the United States and tailored them to Tampa’s unique needs. Using a broad set of criteria, including violent crime indicators such as criminal history, known criminal use of violence and weapons, and gang membership, the Tampa Police Department (TPD) identified the most violent offenders in its jurisdiction. At a weekly meeting, federal, state, and local law enforcement discuss the individuals and screen cases for the most appropriate jurisdiction for prosecution. A 2017 study credits the VIP program with a 7.9% drop in violent crime. Captain Lusczynski created a culture of interagency cooperation that yielded tremendous results for the community and the Tampa VIP model is now being replicated in other cities. Captain Lusczynski has displayed leadership, vision, and devotion to duty that are in keeping with the highest traditions of American law enforcement.
Didi Nelson
Law Enforcement Coordination Manager
Northern District of Georgia
Since the beginning of PSN in 2001 through its reinvigoration in 2017, Didi Nelson has been a guiding light for PSN in the Northern District of Georgia and beyond. Nelson – who has more than 30 years of service to the Department – has worked to implement the PSN program faithfully and consistently since its inception. She is the bridge between the Department and local and state law enforcement whose partnership is so crucial for PSN’s success. Nelson has also worked to create strong relationships with the community and has been instrumental in creating connections with non-traditional partners, such as social service providers, faith-based organizations and other groups. As a result of her commitment, credibility, and extensive knowledge of PSN, the district’s reinvigorated PSN strategy has expanded rapidly since the fall of 2017 and spread the USAO’s anti-violence initiatives into every county of the District. Nelson continues to impact the PSN program nationwide by serving as an expert to other Districts in the country that are seeking to develop effective PSN strategies of their own.
Trisha Stein
Director of Administrative Operations
City of Detroit Police Department
Eastern District of Michigan
Trisha Stein has played an important coordination role in the Eastern District of Michigan’s PSN program. Stein is responsible for interfacing with PSN task force members, fiscal agents, and her internal administration to ensure the Detroit PSN program is successfully executed. Stein interfaces with agency heads, program managers, and community and faith leaders to ensure everyone remains focused on the goals of PSN. Stein is also responsible for local oversight and leveraging resources from most grant-funded programs. She is familiar with all the grants awarded to the city and leverages those resources so that the outcome is a force multiplier for all programs. There is no doubt Stein’s efforts to oversee, coordinate and facilitate the moving parts of PSN played a key role in the program’s success. Homicides are at the lowest level in 50 years, and fatal and non-fatal shooting are down by over 30%.
Gary Mervis
Founder
Camp Good Days and Special Times/Partners Against Violence Everywhere
Western District of New York
Gary Mervis changes lives. After his daughter was diagnosed with cancer, he single-handedly founded what is today one the largest and most successful camps for sick children in the world. Following his daughter’s death, Mervis decided to broaden his reach in helping others. Using the many connections he made while creating Camp Good Days and Special Times, Mervis set out to curb the growing violent crime problem in Rochester by establishing Partners Against Violence Everywhere (PAVE). Through his leadership, partners from state and federal law enforcement, business alliances, faith-based groups, education leaders, hospitals, and social services were brought together to effect positive change in the community. PAVE has served as the platform on which Rochester’s violent crime reduction projects have launched, including the long-running Project Exile effort. For over 20 years, Mervis has led the Project Exile Board and ensured that it remains the model for how law enforcement and the community can work together to effectuate lasting change. The PAVE/Exile board and partnerships formed the base for the original PSN efforts and have been supporting the program, and its reinvigoration, ever since.
Sarah Wannarka
Chief of Major Crimes
San Antonio Division
Western District of Texas
Since the 1990s, people living in the east side of San Antonio have fallen victim to the growing swell of gang violence. The Bloods and Crips openly fought for control of the residential area through drive by shootings and murders. In the summer of 2017, the violence peaked when a 4-year old was shot and killed while playing video games with his 8-year old brother in their own home. Assistant United States Attorney Sarah Wannarka indicted members of the gang involved in that shooting. She also led a federal and state multi-agency law enforcement effort that fought to return peace to this neighborhood. Her efforts resulted in a federal indictment against 21 members of the Bloods and Crips, 189 state and local arrests, the seizure of 67 firearms, and nearly $200,000 worth of drugs being taken off the streets. In addition to her impactful caseload, AUSA Wannarka leads the PSN efforts in the District and ensures seamless coordination between the many task force members. She has engaged prevention service providers to participate in the program and spends countless hours of her personal time in community outreach activities, connecting the communities to the PSN program and to law enforcement more generally.
The award for Outstanding Overall Partnership/Task Force is the Department’s award to the groups of individuals that made the greatest impact for Project Safe Neighborhoods as we continue to bring peace to pair with the prosperity of all Americans.
Project EJECT Task Force
Southern District of Mississippi
In December 2017, the Southern District of Mississippi launched its PSN task force to combat violent crime occurring in Jackson, MS. The United States Attorney’s Office, ATF, DEA, FBI, and VSMS joined forces with HSI, the Jackson Police Department, Hinds County District Attorney’s Office, Mississippi State Crime Laboratory, city councilmen, community leaders, non-profits, and faith leaders to form Project EJECT, a holistic, multi- disciplinary approach to combating violent crime. EJECT stands for “Empower Jackson Expel Crime Together.” Project EJECT employs four platforms: prevention; prosecution; reentry and rehabilitation; and awareness. In addition to undertaking significant enforcement efforts, members of the task force conduct prevention activities at schools and non- profits, and engage the community through regular town hall meetings. This coordinated and comprehensive approach helped reduce violent crime in the city of Jackson by over 16% in the last year.
Dallas PSN Task Force
Northern District of Texas
Formed in April 2018, the Dallas PSN Task Force is comprised of more than 60 individual officers and agents from at least 11 different local and federal partners, local government and schools, and more than 15 community stakeholder organizations. The goals of the Task Force are threefold: (1) to eliminate violence in the target area and reduce violence in Dallas as a whole; (2) to engage the community in the effort; and (3) to develop effective strategies for re- entry and prevention particularly as it relates to youth in the area. The law enforcement subcommittee of the Task Force has developed a close partnership through weekly meetings and close collaboration, which has led to over 100 arrests of violent individuals. In addition, over the last six months alone, the Task Force and its community engagement subcommittee have participated in over 40 community meetings and events designed to engage the community, including a large unity festival that served more than 1,000 citizens. The Task Force has also engaged in extensive outreach at schools and with local businesses and has translated its PSN materials into eight different languages due to the diverse population in the target enforcement area. The Task Force holds a monthly reentry night, where its members have met with approximately 300 people returning from prison or beginning probation. Importantly, the Task Force has opened new lines of communication between residents and law enforcement in the target enforcement area that did not previously exist.
The award for Outstanding Local Prosecutor’s Office/Local Prosecutor is the Department’s award to the offices and attorneys that set the greatest example that we should consummately strive to emulate.
West Valley City Prosecutor’s Office
District of Utah
Since the inception of PSN, the West Valley City Prosecutor’s Office has dedicated a full-time prosecutor as a Special Assistant United States Attorney (SAUSA) to exclusively prosecute federal firearm cases. The West Valley City Prosecutor’s Office SAUSA has successfully prosecuted hundreds of federal violent crime cases. Through strategic enforcement, the Office has focused its efforts on the most violent criminals, especially violent gang members, domestic violence abusers, and armed drug traffickers. The efforts of the Office have led to the removal of the most violent armed criminals from West Valley. And for most of the 18 years, West Valley has not received any federal compensation for the dedicated SAUSA. The West Valley SAUSA has always been one of the top PSN producers for the District of Utah, and the district’s PSN success is, in large part, a result of the dedication of the West Valley City Prosecutor’s Office.
Branden B. Miles
Weber County Prosecutor’s Office
District of Utah
Branden Miles is one of the longest tenured SAUSAs in the District of Utah and has made one of the greatest contributions to the Utah’s PSN program. As a state prosecutor in the Weber County Attorney’s Office, Miles was first cross-deputized as a SAUSA in 2007. Since that time, he has worked tirelessly to prosecute dangerous firearm offenders, armed drug traffickers, and violent gang members. Miles, who currently serves as Chief Criminal Deputy in his office, has mentored five of his colleagues in becoming productive federal gun prosecutors. Most recently, he played an instrumental role in establishing the target enforcement area in downtown Ogden, Utah, shepherding crucial components of local, state, and federal law enforcement in a collaborative and strategic approach to reducing violent crime in this area. Miles’s work has made a significant impact on northern Utah’s violent crime problems and has resulted in extricating many of the most violent and dangerous criminals from this community.
The award for Outstanding Local Police/Sheriff Department Involvement is the Department’s award to the officers and departments that have laid the groundwork and spent time in the trenches fighting violent crime in the field, so others can fight it in the courtroom.
Wilmington Police Department
District of Delaware
The West Center City project is at the heart of Delaware’s PSN efforts. In 2017, Wilmington Police Department (WPD) began working with local and federal agencies to achieve a common goal: to remove violent actors from the target neighborhood and improve residents’ quality of life. A newly-established patrol unit conducted foot patrols and implemented community policing strategies. Officers worked with city agencies to shut down nuisance properties and provide other services to improve residents quality of life such as collecting garbage and cutting down tree branches. WPD officers worked with federal law enforcement to arrest drug dealers selling openly and to investigate shootings and murders. WPD has also established a “Real Time Crime Center” to support data-driven policing strategies. These efforts have made Wilmington safer for everyone. The WPD has reduced homicides by 33%, shootings by over 70%, burglaries by 31%, and rapes by 100% in the target neighborhood.
West Palm Beach Police Department
Southern District of Florida
The West Palm Beach Police Department’s commitment to the core principles of the reinvigorated PSN has had, and continues to have, a dramatic effect in the Southern District of Florida. West Palm Beach officers serve full time as task force officers with ATF, DEA, and FBI to combat violent crime. In 2018, the West Palm Beach Police Department created a “Real Time Crime Center” that uses intelligence from a number of sources to generate current and actionable law enforcement leads. In addition to enforcement activity, West Palm Beach PD has also made a commitment to community engagement, which successfully built bridges between law enforcement and the communities they serve. The West Palm Beach’s community engagement initiatives are extensive, and include not only national programs, but also local programs like the “R.I.P.” program that interacts weekly with juvenile offenders arrested for gun and violent crimes, and “Cops and Scholars,” which champions kids in vulnerable communities. West Palm Beach PD also serves as a partner to many outside organizations and programs. All of these efforts are contributing to the success of PSN in this community.
The award for Outstanding Community Involvement is the Department’s award to the regular citizens who saw a need for action and filled that need with their every effort. They too set an example and prove a point that Project Safe Neighborhoods is not something top-down, but rather bottom-up.
Better Family Life Initiative, James Clark
Vice President Community Outreach
Eastern District of Missouri
James Clark is the Vice President, Community Outreach, for Better Family Life, Inc. (BFL), a community development organization that promotes positive change through cultural, economic, and educational programs. When the reinvigorated PSN program was launched in the Eastern District of Missouri, Clark readily joined the U.S. Attorney’s violent crime reduction working group. Among his numerous contributions to PSN, Clark greatly expanded the BFL’s Gun Violence De-escalation Program.
The goal of the de-escalation program is to prevent violent confrontations between feuding parties, and thereby save lives. The program involves identifying situations in which there is an impending threat of violence involving two or more adversaries. Community members notify BFL of feuds and other impending altercations; BFL also learns about feuds from members of the St. Louis Metropolitan Police Department and the St. Louis County Police Department. Upon learning of a feud, Clark dispatches trained staff members to investigate the dispute. BFL identifies persons who have influence in the lives of the combatants, including family members, coaches, clergy, or anyone who has influence over the adversary. With the help of this group, Clark and BFL provide conflict resolution assistance to mediate and de-escalate the dispute. BFL has successfully thwarted over 50 conflicts involving ongoing, escalating gun battles between combatants in the St. Louis area, with its results verified and studied by Washington University’s Brown School of Social Work.
Clark’s and BFL’s efforts to reduce gun violence through community involvement has been noteworthy and effective in other areas as well. For example, BFL organizes monthly summer “Clean Sweeps” where neighbors, members of law enforcement, and local construction companies clear and clean-up vacant and abandoned properties in distressed areas. Finally, Clark organized with the United States Attorney’s Office and Crime Stoppers over 40 public service announcements aimed at reducing violent crime which are aired on local radio.
Omaha 360° Violence Prevention Collaborative, Willie Barney
Executive Director
District of Nebraska
The Omaha 360° Violence Prevention Collaborative serves as a model of how PSN and federal prosecutors can partner with community-based efforts to enhance the law enforcement response to violent crime. The success of this program has dramatically decreased gun violence in Omaha and demonstrates that partnerships with non-criminal justice can greatly assist enforcement efforts through comprehensive prevention and community support.
Omaha 360°, a group of more than 400 organizations and thousands of participants, grew out of the Empowerment Network founded in 2006 by Willie Barney. He began by engaging members of his church and community and facilitating small group meetings with concerned citizens to address gun violence and improve the quality of life in the community. Barney also met with the Omaha Police Department (OPD) and worked to build a stronger relationship between OPD and the community. Today these stakeholders meet on a weekly basis and work together to address the root causes of gun violence and develop positive opportunities as alternatives to violence. Police- community relations have significantly improved as a result of this collaboration and OPD’s strong community engagement programs. These efforts have been key to violence reduction and community- building resulting in increased calls for service, witness cooperation, and clearance rates.
Omaha 360° has fully embraced its partnership with the United States Attorney’s Office. This partnership allows the United States Attorney’s Office to focus on its primary role—enforcing the law and, by doing so, improving public safety—while supporting other individuals and organizations to address the factors that contribute to violent crime. The combination of these efforts has made a significant impact in Omaha and is an integral component of the PSN effort.
The award for Innovative Prevention/Reentry Strategy is the Department’s award to those who made an impact to reduce offenses, preventing crime by mitigating risk, and preventing recidivism on the part of those reintegrating into society.
Offender Alumni Association
Northern District of Georgia
The Offender Alumni Association (OAA) organizes support groups for high-risk adult felons being released from custody to provide peer-to-peer support, help them solve dilemmas, and connect them with resources. The organization is made up of former offenders who are uniquely motivated and committed to helping those about to be released from prison. OAA’s model recognizes that continuous and consistent support is crucial to help prevent recidivism, accordingly, OAA meets with offenders while they are still incarcerated, and maintains relationships with them and their families to connect them with networks of support in their communities upon release. OAA has supported more than 650 offenders returning to the community. In 2018, OAA expanded in support of the Northern District of Georgia’s PSN strategy and now partners with the USAO, state and federal agencies, and other providers to support high-risk adult offenders being released from custody into PSN target enforcement areas.
The Justice Education Center, Inc.
District of Connecticut
The USAO for the District of Connecticut and The Justice Education Center developed the Career Pathways Technology Collaborative, a program designed to provide skilled vocational, credentialed training to at-risk youth, 16-24 years of age. Career Pathways enables young people to acquire credits toward their high school diploma or GED, obtain entry or competitive level employment, or seek further technology certifications through union or community college programs. This Collaborative is deeply community-based, as the Justice Education Center has developed partnerships with local Boards of Education, community colleges, workforce development boards, and unions. Of the 33 youths enrolled in the program since 2015, over 70% received credit towards graduation. The success of the partnership between the District of Connecticut and The Justice Education Center has fostered the development of new investments in education, risk reduction and career readiness – with PSN funds serving as critical leverage for additional state, municipal and foundation support.
Actelion Pharmaceuticals Agrees to Pay $360 Million to Resolve Allegations that it Paid Kickbacks Through a Co-Pay Assistance FoundationRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that pharmaceutical company Actelion Pharmaceuticals US, Inc. (Actelion), a seller of pulmonary arterial hypertension (PAH) drugs, has agreed to pay $360 million to resolve allegations that it violated the False Claims Act by paying kickbacks to Medicare patients through a purportedly independent charitable foundation.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
Actelion sells a number of PAH drugs, including Tracleer, Ventavis, Veletri, and Opsumit. As part of today’s settlement, the government alleged that Actelion used a foundation as a conduit to pay the co-pay obligations of thousands of Medicare patients taking Actelion’s PAH drugs. By doing so, the government alleged, Actelion was able to induce patients to purchase its drugs when the prices Actelion had set for those drugs otherwise could have posed a barrier to purchases.
The government alleges that in 2014 and 2015, Actelion routinely obtained data from the foundation detailing how many patients on each Actelion drug the foundation had assisted, how much the foundation had spent on those patients, and how much the foundation expected to spend on those patients in the future. Actelion used this information to budget for future payments to the foundation on a drug-specific basis and to confirm that its contribution amounts to the foundation were sufficient to cover the copays of patients taking Actelion’s drugs, but not of patients taking other manufacturers’ PAH drugs. Actelion engaged in this practice even though the foundation warned the company against receiving data concerning the foundation’s expenditures on copays for Actelion’s drugs. Meanwhile, the government also alleged that Actelion had a policy of not permitting Medicare patients to participate in its free drug program, which was open to other financially needy patients, even if those Medicare patients could not afford their copays for Actelion’s drugs. Instead, to generate revenue from Medicare and induce purchases of its drugs, the government alleged that Actelion referred such Medicare patients to the foundation, which allowed the patients’ copays to be paid and resulted in claims to Medicare for the remaining cost.
“Using data from a foundation that it knew it should not have, Actelion effectively set up a proprietary fund to cover the co-pays of just its own drugs,” said United States Attorney Andrew E. Lelling. “Such conduct not only violates the anti-kickback statute, it also undermines the Medicare program’s co-pay structure, which Congress created as a safeguard against inflated drug prices. During the period covered by today’s settlement, Actelion raised the price of its main PAH drug, Tracleer, by nearly 30 times the rate of overall inflation in the United States.”
“This settlement, as do prior settlements concerning similar misconduct, make clear that the government will hold accountable drug companies that pay illegal kickbacks,” said Assistant Attorney General Joseph H. Hunt of the Department Justice’s Civil Division. “Pharmaceutical companies cannot have it both ways—they cannot continue to increase drug prices while engaging in conduct designed to defeat the mechanisms that Congress designed to check such prices and then expect Medicare to pay for the ballooning costs.”
“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the Department of Health and Human Service’s Boston Regional Office. “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program.”
“Today’s settlement against Actelion is a victory for the public and underscores the FBI's commitment to safeguarding the financial integrity of the Medicare program,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Simply put, the goal of the FBI's Health Care Fraud program is to ensure that patients receive the appropriate treatments and therapies according to their medical needs, without corrupt or profit-driven influence of drug manufacturers.”
On June 16, 2017, after the conduct alleged in today’s settlement agreement, Johnson & Johnson acquired Actelion. Johnson & Johnson was not involved, directly or indirectly, in the alleged conduct and the allegations above do not relate in any way to Johnson & Johnson.
U.S. Attorney Lelling, Assistant Attorney General Hunt, HHS-OIG SAC Coyne, and FBI SAC Shaw made the announcement today. The U.S. Postal Inspection Service also assisted with the investigation. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Abraham George, of Lelling’s Office, and by Trial Attorneys Augustine Ripa and Sarah Arni of the Justice Department’s Civil Division.
5 December 2018
Wooster man indicted for attempting to induce what he believed was a 13-year-old boy to have sex with himRead the Press Release
A Wooster man was indicted in federal court for attempting to induce what he believed was a 13-year-old boy to have sex with him.
Luther R. Nash, 47, was indicted on one count of coercion and enticement.
Nash used a cell phone to attempt to persuade, induce, entice and coerce an individual who had not attained the age of 18 years, that is, a 13 year-old boy, to engage in illegal sexual activity with him. This took place in September and October, 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 the maximum.
This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the Federal Bureau of Investigation, the Wooster Police Department and the Canton Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Six Defendants Arrested for Distributing Heroin in the Williamsburg Section of Brooklyn and ElsewhereRead the Press Release
Earlier today, a complaint was unsealed in federal court in Brooklyn charging seven defendants for their participation in an opioid distribution ring operating in the Williamsburg section of Brooklyn, the Bronx, and Hawaii. Five defendants were arrested in Brooklyn, the Bronx, Queens and Manhattan this morning, and will make their initial appearances this afternoon before United States Magistrate Judge Robert M. Levy. A sixth defendant was arrested in Hawaii and will appear later today at the federal courthouse in Honolulu.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, the defendants distributed opioids day after day in our community, feeding addiction without regard for the potentially lethal consequences of their actions,” stated United States Attorney Donoghue. “With today’s arrests, the drug ring has been dismantled, and the defendants will now be held to account in a court of law.”
“The epidemic of opioid abuse is a public health crisis. Those who choose to profit from trafficking in these potent narcotics show a flagrant disregard not just for the law, but for the safety of their communities,” said FBI Assistant Director-in-Charge Sweeney. “As alleged, these defendants enabled the cycle of addiction with their narcotics distribution enterprise spanning the country. The FBI will continue to work with our federal, state and local partners to get drug traffickers and their dangerous products off the streets.”
As detailed in the complaint, since the autumn of 2017, FBI agents and NYPD detectives have been investigating the defendants’ drug trafficking ring. The investigation included physical surveillance, pen registers and communications intercepted pursuant to judicially authorized wiretaps. The pattern of the intercepted communications and the pen register data established that the defendants were in frequent contact nearly 2,000 times during one six-month period, and that the those contacts were primarily narcotics-related. During this time, the defendants regularly transported, repackaged and distributed heroin on the streets of New York City. The ring was also responsible for shipping at least $7,000 worth of heroin to be sold in Hawaii over the course of several months. In total, the defendants distributed well over a kilogram of heroin and bragged about its potency, referring to it as “fever” and “fire.”
Earlier this morning, law enforcement executed search warrants at five of the defendants’ residences and, in total, recovered approximately 150 grams of heroin including at least 350 glassines packaged for sale on the streets; more than five pounds of marijuana; more than $20,000 in U.S. currency, more than 150 pairs of luxury sneakers valued at tens of thousands of dollars; and drug paraphernalia including a kilogram press, multiple scales, hundreds of empty glassines and stamps used to mark the glassines for sale. Law enforcement also recovered a stolen loaded .40 caliber Glock firearm and more than 80 rounds of additional ammunition from defendant Robert Martinez.
The charge announced today is an allegation, and the defendants are presumed innocent unless and until proven guilty. If convicted, defendants Martinez, Victor Cruz, Jeffrey Caamano, Jason Reyes and Jason Garcia face mandatory minimum sentences of 10 years’ imprisonment and up to life imprisonment. Alanna Kelly faces a mandatory minimum of five years and up to 40 years’ imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Jennifer M. Sasso is in charge of the prosecution.
The Defendants:
VICTOR CRUZ (also known as “Vic” and “VI”)
Age: 29
Brooklyn, New YorkROBERT MARTINEZ (also known as “Rob”)
Age: 34
Maspeth, New YorkJEFFREY CAAMANO (also known as “Jefe”)
Age: 30
Bronx, New YorkJASON REYES
Age: 34
Brooklyn, New YorkJASON GARCIA (also known as “Jay”)
Age: 27
Brooklyn, New YorkALANNA KELLY
Age: 31
The Big Island, HawaiiE.D.N.Y. Docket No. 18-MJ-1157
Prominent Scottsdale Attorney Sentenced to Prison for Bankruptcy FraudRead the Press Release
PHOENIX – On Nov. 13, 2018, Scott Allan Maasen, of Scottsdale, Ariz., was sentenced by Senior U.S. District Judge David Campbell to 18 months in prison followed by three years of supervised release. Maasen also was ordered to pay nearly $1.4 million in restitution to the United States Small Business Administration. Maasen had previously pleaded guilty to one count of concealment of assets in bankruptcy.
Maasen filed for bankruptcy in late 2009 after he stopped making payments on a $1.5 million loan guaranteed by the Small Business Administration. As part of his plea, Maasen admitted that, while his bankruptcy proceedings were still pending, Maasen purchased a $90,000 engagement ring for his fiancé. Maasen admitted he did not disclose the ring or his payments to purchase the ring in his bankruptcy proceedings, although he was obligated to do so. Maasen used credit card and bank accounts in his father’s name to make the payments to give the false appearance that Maasen’s father had purchased the ring.
The investigation in this case was conducted by the Internal Revenue Service—Criminal Investigation and Small Business Administration—Office of the Inspector General. The prosecution was handled by Frank Galati, Bridget Minder, and Peter Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix, with assistance from the Office of the U.S. Trustee, United States Bankruptcy Court, District of Arizona, and Jennifer Giaimo, Special Assistant U.S. Attorney.
CASE NUMBER: CR-16-01357-001-PHX-DGC
RELEASE NUMBER: 2018-165_Maasen
doc_129_amended_judgment.pdf# # #
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.
Patrick Ho, Former Head of Organization Backed by Chinese Energy Conglomerate, Convicted of International Bribery, Money Laundering OffensesRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced that CHI PING PATRICK HO, a/k/a “Patrick C.P. Ho,” a/k/a “He Zhiping,” was found guilty today after a jury trial before U.S. District Judge Loretta A. Preska of participating in a multi-year, multimillion-dollar scheme to bribe top officials of Chad and Uganda in exchange for business advantages for CEFC China Energy Company Limited (“CEFC China”). HO was convicted of violations of the Foreign Corrupt Practices Act (“FCPA”), international money laundering, and conspiracy to commit both. HO is scheduled to be sentenced before Judge Preska on March 14, 2019, at 10:00 a.m.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Patrick Ho now stands convicted of scheming to pay millions in bribes to foreign leaders in Chad and Uganda, all as part of his efforts to corruptly secure unfair business advantages for a multibillion-dollar Chinese energy company. As the jury’s verdict makes clear, Ho’s repeated attempts to corrupt foreign leaders were not business as usual, but criminal efforts to undermine the fairness of international markets and erode the public’s faith in its leaders.”
Assistant Attorney General Brian A. Benczkowski: “Patrick Ho paid millions of dollars in bribes to the leaders of two African countries to secure contracts for a Chinese conglomerate. Today’s trial conviction demonstrates the Criminal Division’s commitment to prosecuting those who seek to utilize our financial system to secure unfair competition advantages through corruption and bribery.”
According to the Indictment, evidence presented at trial, and other public proceedings in the case:
Overview
HO was involved in two bribery schemes to pay top officials of Chad and Uganda in exchange for business advantages for CEFC China, a Shanghai-based multibillion-dollar conglomerate that operates internationally in multiple sectors, including oil, gas, and banking. At the center of both schemes was HO, the head of a non-governmental organization based in Hong Kong and Arlington, Virginia, the China Energy Fund Committee (the “CEFC NGO”), which held “Special Consultative Status” with the United Nations (“UN”) Economic and Social Council. CEFC NGO was funded by CEFC China.
In the first scheme (the “Chad Scheme”), HO, on behalf of CEFC China, offered a $2 million cash bribe, hidden within gift boxes, to Idriss Déby, the President of Chad, in an effort to obtain valuable oil rights from the Chadian government. In the second scheme (the “Uganda Scheme”), HO caused a $500,000 bribe to be paid, via wires transmitted through New York, New York, to an account designated by Sam Kutesa, the Minister of Foreign Affairs of Uganda, who had recently completed his term as the President of the UN General Assembly. HO also schemed to pay a $500,000 cash bribe to Yoweri Museveni, the President of Uganda, and offered to provide both Kutesa and Museveni with additional corrupt benefits by “partnering” with them in future joint ventures in Uganda.
The Chad Scheme
The Chad Scheme began in or about September 2014 when HO flew into New York, New York to attend the annual UN General Assembly. At that time, CEFC China was working to expand its operations to Chad and wanted to meet with President Déby as quickly as possible. Through a connection, HO was introduced to Cheikh Gadio, the former Minister of Foreign Affairs of Senegal, who had a personal relationship with President Déby. HO and Gadio met at CEFC China’s suite at Trump World Tower in midtown Manhattan, where HO enlisted Gadio to assist CEFC China in obtaining access to President Déby.
Gadio connected HO and CEFC China to President Déby. In an initial meeting in Chad in November 2014, President Déby described to HO and CEFC China executives certain lucrative oil rights that were available for CEFC China to acquire. Following that meeting, Gadio advised HO and CEFC China to send a technical team to Chad to investigate the oil rights and make an offer to President Déby. Instead, HO insisted on a prompt second meeting with the President. The second meeting took place a few weeks later, in December 2014. HO led a CEFC China delegation, which flew into Chad on a corporate jet with $2 million cash concealed within several gift boxes. At the conclusion of a business meeting with President Déby, HO and the CEFC China executives presented President Déby with the gift boxes.
To the surprise of HO and the CEFC China executives, President Déby rejected the $2 million bribe offer. HO subsequently drafted a letter to President Déby claiming that the cash had been intended as a donation to Chad. Ultimately, HO and CEFC China did not obtain the unfair advantage that they had sought through the bribe offer, and by mid-2015, HO had turned his attention to a different “gateway to Africa”: Uganda.
The Uganda Scheme
The Uganda Scheme began around the same time as the Chad Scheme, when HO was in New York, New York for the annual UN General Assembly. HO met with Sam Kutesa, who had recently begun his term as the 69th President of the UN General Assembly (“PGA”). HO, purporting to act on behalf of CEFC NGO, met with Kutesa and began to cultivate a relationship with him. During the year that Kutesa served as PGA, HO and Kutesa discussed a “strategic partnership” between Uganda and CEFC China for various business ventures, to be formed once Kutesa completed his term as PGA and returned to Uganda.
In or about February 2016 – after Kutesa had returned to Uganda and resumed his role as Foreign Minister, and Yoweri Museveni (Kutesa’s relative) had been reelected as the President of Uganda – Kutesa solicited a payment from HO, purportedly for a charitable foundation that Kutesa wished to launch. HO agreed to provide the requested payment, but simultaneously requested, on behalf of CEFC China, an invitation to Museveni’s inauguration, business meetings with President Museveni and other high-level Ugandan officials, and a list of specific business projects in Uganda that CEFC China could participate in.
In May 2016, HO and CEFC China executives traveled to Uganda. Prior to departing, HO caused the CEFC NGO to wire $500,000 to the account provided by Kutesa in the name of the so-called “foundation,” which wire was transmitted through banks in New York, New York. HO also advised his boss, the Chairman of CEFC China, to provide $500,000 in cash to President Museveni, ostensibly as a campaign donation, even though Museveni had already been reelected. HO intended these payments as bribes to influence Kutesa and Museveni to use their official power to steer business advantages to CEFC China.
HO and CEFC China executives attended President Museveni’s inauguration and obtained business meetings in Uganda with President Museveni and top Ugandan officials, including at the Department of Energy and Mineral Resources. After the trip, HO requested that Kutesa and Museveni assist CEFC China in acquiring a Ugandan bank, as an initial step before pursuing additional ventures in Uganda. HO also explicitly offered to “partner” with Kutesa and Museveni and/or their “family businesses,” making clear that both officials would share in CEFC China’s future profits. In exchange for the bribes offered and paid by HO, Kutesa thereafter steered a bank acquisition opportunity to CEFC China.
* * *
HO, 69, of Hong Kong, China, was convicted of one count of conspiring to violate the FCPA, four counts of violating the FCPA, one count of conspiring to commit international money laundering, and one count of committing international money laundering. The maximum penalties for these charges are as follows: five years in prison for conspiring to violate the FCPA; five years in prison for each violation of the FCPA; 20 years in prison for conspiring to commit international money laundering; and 20 years in prison for committing international money laundering. HO was acquitted of one count of international money laundering.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the sentencing of HO will be determined by the judge.
Mr. Berman praised the outstanding work of the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. He also thanked the Department of Homeland Security, Homeland Security Investigations, and the Department of Justice, Criminal Division’s Office of International Affairs.
This case is being prosecuted by the Office’s Public Corruption Unit and the Criminal Division’s Fraud Section, FCPA Unit. Assistant U.S. Attorneys Douglas S. Zolkind, Daniel C. Richenthal, and Catherine E. Ghosh, and Trial Attorney Paul A. Hayden of the Fraud Section, are in charge of the prosecution.
Former Head of Organization Backed by Chinese Energy Conglomerate Convicted of International Bribery, Money Laundering OffensesRead the Press Release
A federal jury in New York City today convicted the head of a nongovernmental organization (NGO) based in Hong Kong and Virginia on seven counts for his participation in a multi-year, multimillion-dollar scheme to bribe top officials of Chad and Uganda in exchange for business advantages for a Chinese oil and gas company, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Geoffrey S. Berman of the Southern District of New York.
Chi Ping Patrick Ho, aka “Patrick C.P. Ho,” aka “He Zhiping,” 69, of Hong Kong, China, was found guilty today after a one-week jury trial before U.S. District Judge Loretta A. Preska in the Southern District of New York of one count of conspiring to violate the Foreign Corrupt Practices Act (FCPA), four counts of violating the FCPA, one count of conspiring to commit international money laundering and one count of committing international money laundering. Ho is scheduled to be sentenced before Judge Preska on March 14, 2019, at 10:00 a.m. EDT.
“Patrick Ho paid millions of dollars in bribes to the leaders of two African countries to secure contracts for a Chinese conglomerate,” said Assistant Attorney General Benczkowski. “Today’s trial conviction demonstrates the Criminal Division’s commitment to prosecuting those who seek to utilize our financial system to secure unfair competition advantages through corruption and bribery.”
“Patrick Ho now stands convicted of scheming to pay millions in bribes to foreign leaders in Chad and Uganda, all as part of his efforts to corruptly secure unfair business advantages for a multibillion-dollar Chinese energy company,” said U.S. Attorney Berman. “As the jury’s verdict makes clear, Ho’s repeated attempts to corrupt foreign leaders were not business as usual, but criminal efforts to undermine the fairness of international markets and erode the public’s faith in its leaders.”
According to evidence presented at trial, Ho was involved in two bribery schemes to pay top officials of Chad and Uganda in exchange for business advantages for CEFC China, a Shanghai-based multibillion-dollar conglomerate that operates internationally in multiple sectors, including oil, gas, and banking. At the center of both schemes was Ho, the head of a nongovernmental organization based in Hong Kong and Arlington, Virginia, the China Energy Fund Committee (the “CEFC NGO”), which held “Special Consultative Status” with the United Nations (UN) Economic and Social Council. CEFC NGO was funded by CEFC China.
According to the evidence presented at trial, in the first scheme (the “Chad Scheme”), Ho, on behalf of CEFC China, offered a $2 million cash bribe, hidden within gift boxes, to Idriss Déby, the President of Chad, in an effort to obtain valuable oil rights from the Chadian government. In the second scheme (the “Uganda Scheme”), Ho caused a $500,000 bribe to be paid, via wires transmitted through New York, New York, to an account designated by Sam Kutesa, the Minister of Foreign Affairs of Uganda, who had recently completed his term as the President of the UN General Assembly. Ho also schemed to pay a $500,000 cash bribe to Yoweri Museveni, the President of Uganda, and offered to provide both Kutesa and Museveni with additional corrupt benefits by “partnering” with them in future joint ventures in Uganda.
The Chad Scheme
According to the evidence presented at trial, the Chad Scheme began in or about September 2014 when Ho flew into New York, New York to attend the annual UN General Assembly. At that time, CEFC China was working to expand its operations to Chad and wanted to meet with President Déby as quickly as possible. Through a connection, Ho was introduced to Cheikh Gadio, the former Minister of Foreign Affairs of Senegal, who had a personal relationship with President Déby. Ho and Gadio met in midtown Manhattan, New York where Ho enlisted Gadio to assist CEFC China in obtaining access to President Déby.
Gadio connected Ho and CEFC China to President Déby. In an initial meeting in Chad in November 2014, President Déby described to Ho and CEFC China executives certain lucrative oil rights that were available for CEFC China to acquire. Following that meeting, Gadio advised Ho and CEFC China to send a technical team to Chad to investigate the oil rights and make an offer to President Déby. Instead, Ho insisted on a prompt second meeting with the President. The second meeting took place a few weeks later, in December 2014. Ho led a CEFC China delegation, which flew into Chad on a corporate jet with $2 million cash concealed within several gift boxes. At the conclusion of a business meeting with President Déby, Ho and the CEFC China executives presented President Déby with the gift boxes.
To the surprise of Ho and the CEFC China executives, President Déby rejected the $2 million bribe offer. Ho subsequently drafted a letter to President Déby claiming that the cash had been intended as a donation to Chad. Ultimately, Ho and CEFC China did not obtain the unfair advantage that they had sought through the bribe offer, and by mid-2015, Ho had turned his attention to a different “gateway to Africa”: Uganda.
The Uganda Scheme
According to the evidence presented at trial, the Uganda Scheme began around the same time as the Chad Scheme, when Ho was in New York, New York for the annual UN General Assembly. Ho met with Sam Kutesa, who had recently begun his term as the 69th President of the UN General Assembly (“PGA”). Ho, purporting to act on behalf of CEFC NGO, met with Kutesa and began to cultivate a relationship with him. During the year that Kutesa served as PGA, Ho and Kutesa discussed a “strategic partnership” between Uganda and CEFC China for various business ventures, to be formed once Kutesa completed his term as PGA and returned to Uganda.
In or about February 2016 – after Kutesa had returned to Uganda and resumed his role as Foreign Minister, and Yoweri Museveni (Kutesa’s relative) had been reelected as the President of Uganda – Kutesa solicited a payment from Ho, purportedly for a charitable foundation that Kutesa wished to launch. Ho agreed to provide the requested payment, but simultaneously requested, on behalf of CEFC China, an invitation to Museveni’s inauguration, business meetings with President Museveni and other high-level Ugandan officials, and a list of specific business projects in Uganda that CEFC China could participate in.
In May 2016, Ho and CEFC China executives traveled to Uganda. Prior to departing, Ho caused the CEFC NGO to wire $500,000 to the account provided by Kutesa in the name of the so-called “foundation,” which wire was transmitted through banks in New York, New York. Ho also advised his boss, the Chairman of CEFC China, to provide $500,000 in cash to President Museveni, ostensibly as a campaign donation, even though Museveni had already been reelected. Ho intended these payments as bribes to influence Kutesa and Museveni to use their official power to steer business advantages to CEFC China.
Ho and CEFC China executives attended President Museveni’s inauguration and obtained business meetings in Uganda with President Museveni and top Ugandan officials, including at the Department of Energy and Mineral Resources. After the trip, Ho requested that Kutesa and Museveni assist CEFC China in acquiring a Ugandan bank, as an initial step before pursuing additional ventures in Uganda. Ho also explicitly offered to “partner” with Kutesa and Museveni and/or their “family businesses,” making clear that both officials would share in CEFC China’s future profits. In exchange for the bribes offered and paid by Ho, Kutesa thereafter steered a bank acquisition opportunity to CEFC China.
This case was investigated by the FBI and IRS-CI. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Department of Justice, Criminal Division’s Office of International Affairs provided assistance.
Trial Attorney Paul A. Hayden of the Criminal Division’s Fraud Section, FCPA Unit and Assistant U.S. Attorneys Douglas S. Zolkind, Daniel C. Richenthal and Catherine E. Ghosh of the U.S. Attorney’s Office for Southern District of New York’s Public Corruption Unit and the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Bank Tellers Plead Guilty to Stealing $1.6 Million from the Peoples Bank in EatontonRead the Press Release
Macon – Two former bank tellers entered guilty pleas to one count of Conspiracy to Defraud a Financial Institution in federal court Tuesday, said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. Both Vicky Martin, 60, of Buckhead (Morgan County), and Brandy Mize, 42, of Eatonton, were employed as tellers by The Peoples Bank in Eatonton, Georgia, and used their positions to steal $1,663,205.25. Maximum penalties for the fraud charge are 30 years imprisonment, $1,000,000 fine and 5 years supervised release. The Honorable Tillman E. “Tripp” Self presided over Tuesday’s hearing, and sentencing is scheduled for March 5, 2019.
According to the plea agreement, Ms. Mize was the Head Teller and Ms. Martin was employed as the Assistant Head Teller at The People’s Bank. In these positions, the defendants were responsible for correcting mistakes indicated by the Branch Capture Correction Account (BCCA), a quality control feature used by the bank to reveal one-sided transactions and prevent mistakes or fraud. On a daily basis, the defendants were tasked with insuring that the cash counts in the teller drawers and the bank vault balanced, and were not the objects of theft, and overseeing the operation of both the BCCA and Teller Plus system that checks the accuracy of these cash balances and records. The defendants also placed orders for cash from the Federal Reserve Bank.
The defendants used their positions of trust to embezzle and misapply bank money by transferring bank funds into their personal bank accounts or into the accounts of family members and associates. The defendants took cash from their teller drawers and, in Ms. Mize’s case, directly from the vault. The defendants also issued cashier’s checks for their benefit, all without valid checks or cash being deposited to the bank to support these transactions. To cover the thefts, the defendants corrected errors indicated in the BCCA, and hid losses by inflating the vault cash balance, as they were the employees responsible for counting the cash in the vault and ordering the cash to replenish the fault from the Federal Reserve Bank. The bank began their internal investigation in March 2016, following reports from colleagues regarding suspicious activity on the bank’s general ledger. The defendants were suspended on March 14, 2016. In a telephone conversation with the President of The Peoples Bank, Ms. Mize estimated she had been taking money from the bank for three to four years. A substantial increase in activity in the BCAA was noted in April 2014.
“From the front of the bank, the defendants created a complex scheme to defraud a community business out of well over a million dollars,” said U.S. Attorney Peeler. “Thanks to the good investigative work by the FBI, along with our dedicated prosecution team, we were able to fully uncover this conspiracy. We will continue to work with our law enforcement partners to vigorously fight fraud and protect law-abiding citizens and businesses.”
The case was investigated by the Macon office of the Federal Bureau of Investigation. Assistant United States Attorney Paul McCommon is prosecuting the case for the Government.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Atlanta U.S. Attorney Charges Iranian nationals for City of Atlanta ransomware attackRead the Press Release
ATLANTA - A federal grand jury in Atlanta has returned an indictment charging Faramarz Shahi Savandi and Mohammed Mehdi Shah Mansouri with committing a sophisticated ransomware attack on the City of Atlanta in March 2018 in violation of the Computer Fraud and Abuse Act.
“In March 2018, a devastating ransomware attack interrupted City of Atlanta government functions and disrupted our community,” said U.S. Attorney Byung J. “BJay” Pak. “In the days following the attack, local law enforcement officials worked tirelessly to respond to the incident and collect investigative information that was passed on to our counterparts leading the groundbreaking investigation into the SamSam ransomware attacks. This indictment, which is in coordination with the U.S. Attorney’s Office for the District of New Jersey and the Computer Crime and Intellectual Property Section of the U.S. Department of Justice, vindicates the City of Atlanta’s interest in ensuring that those responsible for the attacks face justice here as well.”
“This investigation and subsequent indictment demonstrates the Secret Service’s commitment to safeguarding our financial institutions, our communities, our homeland,” said Kimberly A. Cheatle, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “The virus causing the disruption of service to the City of Atlanta was triaged by cyber investigative experts at the Secret Service in conjunction with other federal law enforcement partners. This case serves as a reminder to all, particularly during the holiday season, to ensure protocols related to cyber hygiene are observed. The Secret Service appreciates the level of cooperation and information sharing throughout this investigation by all law enforcement partners which led to this indictment.”
“The FBI is always eager to help expose criminals who hide behind their computer and launch attacks that threaten our public safety,” said J.C. “Chris” Hacker, Special Agent in Charge of FBI Atlanta. “We are proud to have assisted our federal partners, the U.S. Secret Service, and our private sector partners in sending a strong message that we will work together to investigate and hold all criminals accountable.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: On or about March 10, 2018 through approximately March 22, 2018, the defendants, Faramarz Shahi Savandi and Mohammed Mehdi Shah Mansouri, both of whom are Iranian nationals, caused the execution of a “ransomware” attack against the City of Atlanta, which encrypted vital city computer systems, and demanded a ransom payment to restore access.
The attack was executed by the use of a type of malware (or “ransomware”) referred to as “SamSam Ransomware,” which infected approximately 3,789 computers belonging to the City of Atlanta, including servers and workstations. Once deployed, the ransomware encrypted the files associated with each infected computer and displayed a ransom note. That is, the ransomware effectively locked the infected computers and made it impossible to access the information stored on them without a decryption key.
The ransom note demanded .8 Bitcoin to decrypt each affected computer or six Bitcoin to decrypt all affected computers. That is, the attackers gave the City of Atlanta the option of paying to decrypt certain computers (at a rate of .8 Bitcoin per computer) or to decrypt all the infected computers (for six Bitcoin). The ransom note directed the City of Atlanta to a particular Bitcoin address to pay the ransom and supplied a web domain that was only accessible using a TOR browser; the note suggested that the City of Atlanta could download the decryption key from that website. In the days following the attack, the webpage that purportedly contained the decryption key became inaccessible, and the City of Atlanta did not pay the ransom.
The attack significantly disrupted City of Atlanta operations, impaired certain governmental functions, and caused it to incur substantial expenses in the coming weeks and months. To date, the attack has inflicted millions of dollars in losses.
The indictment charges Faramarz Shahi Savandi, 27, of Shiraz, Iran, and Mohammed Mehdi Shah Mansouri, 34, of Qom, Iran, in the U.S. District Court for the Northern District of Georgia (“the Atlanta case”) with intentional damage to protected computers located in Atlanta that caused losses exceeding $5,000, affected more than 10 protected computers, and that threatened the public health and safety.
The defendants are also charged in the U.S. District Court for the District of New Jersey with one count of conspiracy to commit wire fraud, one count of conspiracy to commit fraud and related activity in connection with computers, two substantive counts of intentional damage to a protected computer located in New Jersey, and two substantive counts of transmitting a demand in relation to damaging a protected computer located in New Jersey. That case is being investigated by the FBI’s Newark Field Office, the U.S. Attorney’s Office for the District of New Jersey, and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
Assistant U.S. Attorneys Nathan P. Kitchens and Kamal Ghali, Deputy Chiefs of the Cyber and Intellectual Property Crime Section, are prosecuting the Atlanta case. The Atlanta Field Offices of the U.S. Secret Service and the Federal Bureau of Investigation assisted with the response to the City of Atlanta ransomware attack.
In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendants guilt beyond a reasonable doubt at trial.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Anil J. Desai, M.D., and related entities to pay over $200,000 to resolve False Claims Act allegationsRead the Press Release
Anil J. Desai, M.D., East Metro Internal Medicine, L.L.C. and Rockdale-Newton Hematology-Oncology (the “Desai Parties”), based in Conyers and Covington, Georgia, have agreed to pay $213,000 to resolve allegations that they violated the False Claims Act by submitting claims to Medicare and Medicaid for drugs that were never provided to their patients, and for drugs that had not received final marketing approval by the U.S. Food and Drug Administration (“FDA”).
“When healthcare providers bill for goods and services that they did not provide, it is the equivalent of taking money from the taxpayer’s pocket,” said U.S. Attorney Byung J. “BJay” Pak. “Additionally, billing for medications that were never approved by the FDA puts patients at risk. We will continue to pursue healthcare providers who put their own bottom line ahead of patient care.”
“The Office of Inspector General will diligently investigate providers who seek to defraud the Medicare and Medicaid trust funds through nefarious billing practices,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “This investigation illustrates how we collaborate with our law enforcement partners to protect beneficiaries while holding suspicious providers accountable.”
“FDA’s drug approval requirements are designed to ensure the safety, efficacy, and quality of drugs distributed or administered to American patients,” said H. Peter Kuehl, Acting Special Agent in Charge, FDA Office of Criminal Investigations’ Miami Field Office. “Today’s announcement should serve as a reminder of our continued focus on those that risk patients’ health for profit.”
“Our Medicaid Fraud Control Division is always at work for Georgians, ensuring that Medicaid providers who bill the Medicaid program do not abuse it for their own financial gain,” said Georgia Attorney General Chris Carr. “We greatly appreciate the partnerships we have with federal agencies who share this same mission, and we will continue supporting them to prevent fraudulent activity.”
Dr. Desai owns both East Metro Internal Medicine, L.L.C. (“East Metro”) and Rockdale-Newton Hematology-Oncology (“Rockdale-Newton”), through which he has provided treatment to cancer patients. The Desai Parties billed Medicare and Medicaid for the drugs Eloxitan and Procrit in connection with Dr. Desai’s treatment of cancer patients. Eloxitan is a chemotherapy drug used to treat certain types of cancer and Procit is a medication that is used to treat anemia caused by chemotherapy as well as other conditions.
The government alleges that between November 1, 2008 and August 13, 2012, the Desai Parties submitted claims to Medicare and Medicaid for Procrit even though there was no record that they purchased enough Procrit to cover the amount that they billed. Moreover, the Government alleges that during that same time period, the Desai Parties submitted claims to Medicare and Medicaid for Eloxitan that had been purchased from a Canadian company, Quality Specialty Products, and had not received final marketing approval by the FDA. The civil settlement resolves the government’s investigation into these allegations.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health and Human Services - Office of Inspector General, and the Food and Drug Administration – Office of Criminal Investigations.
The civil settlement was reached by Assistant U.S. Attorney Neeli Ben-David, Deputy Chief of the Civil Division, and Sara Vann, Assistant Attorney General with the Georgia Medicaid Fraud Control Unit.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Acting Attorney General Matthew Whitaker Statement on the National Day of Mourning for President George H.W. BushRead the Press Release
Today, Acting Attorney General Matthew Whitaker issued the following statement on the National Day of Mourning for President George H.W. Bush: "President George H.W. Bush was a patriot who dedicated his life to serving this great nation," Acting Attorney General Matthew Whitaker said. "As President, he was a strong supporter of law enforcement and helped to lay the foundation for almost three decades of declining crime in America. This was an historic achievement that changed millions of American lives. For me personally, he was the first presidential candidate that I ever voted for. His example has always been an inspiration to me--and it always will. This Department of Justice is determined to continue his legacy of supporting law enforcement officers and protecting the right to be safe. President Bush’s memory will live on, not just in the history books, but in the hearts of a grateful nation. "
4 December 2018
Woman Pleads Guilty to Supplying Fentanyl Resulting in DeathRead the Press Release
NORFOLK, Va. – A Virginia Beach woman pleaded guilty today to her role in a heroin and fentanyl distribution conspiracy that resulted in an overdose death.
“Best was dealing death from the comforts of her beach-front neighborhood,” said U.S. Attorney G. Zachary Terwilliger. “Heroin and fentanyl do not discriminate across economic boundaries, and nor do we. We will remain vigilant in our pursuit of drug dealers who pump poison into our communities, no matter who they are or where they are.”
According to court documents, Michelle Renee Best, aka Michelle Smith, 43, managed her fentanyl operation from her home in the Croatan neighborhood of Virginia Beach. In December 2017, co-conspirator Christopher Bardall distributed fentanyl to a person who used it and subsequently went into a 17-hour coma and died. Virginia Beach Police arrested Bardall the following day. Virginia Beach Police and DEA investigators later learned that Bardall received his supply of fentanyl from co-conspirator Darin Milligan, who in turn got his fentanyl from his regional supplier, Michelle Best. Best knew the narcotics she was distributing were strong and had resulted in multiple overdoses. When she learned of the overdose death, she told Milligan to keep the information to himself and that it would be “business as usual.” Both Best and Milligan continued to buy and sell fentanyl for nearly three months following the overdose death until their arrest on March 13.
“We’ve really worked hard to crack down on the supply of fentanyl in the Commonwealth because it has been one of the primary drivers of the rise in overdose deaths in Virginia,” said Mark R. Herring, Attorney General of Virginia. “Fentanyl is profitable and dangerously potent, with just a few specks capable of killing on any given use, or even through accidental ingestion or absorption. Hampton Roads will be safer now that this local fentanyl source has been taken offline.”
On March 13, a Virginia Beach S.W.A.T. team executed a search warrant on Best’s home and recovered a commercial money counter, nearly $42,000 in cash, 1.85 kilograms of cocaine, 1.12 kilograms of marijuana, 382 grams of heroin laced with fentanyl, a drug ledger, devices used for drug manufacturing such as a hydraulic press, a vacuum bag sealer, scales, and four firearms including an AR-15 rifle and a Ruger .38 Special revolver. Best was prohibited from owning these firearms due to a prior felony animal cruelty conviction in North Carolina for her involvement in a dog-fighting ring.
Best pleaded guilty to conspiracy and distribution of fentanyl resulting in serious bodily injury. She faces a mandatory minimum sentence of 20 years in prison when sentenced on March 14, 2019. Bardall pleaded guilty for his role in the conspiracy and will be sentenced on March 5, 2019. Milligan also pleaded guilty for his role in the conspiracy and will be sentenced Jan. 29, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department reinvigorated PSN in 2017 as part of a renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Mark R. Herring, Attorney General of Virginia, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, James A. Cervera, Chief of Virginia Beach Police, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea. Assistant U.S. Attorneys John F. Butler, Andrew C. Bosse, and Joseph E. DePadilla are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-147.
Violent Grape Street Crips Member Sentenced to Life in Prison for Murder and Attempted Murder as Part of Rico ConspiracyRead the Press Release
Another violent gang-member member sentenced to 25 years
NEWARK, N.J. – A high-ranking member of the New Jersey Grape Street Crips was sentenced today to two concurrent terms of life – plus 35 years – in federal prison for committing a murder, participating in a separate attempted murder, and conspiring to distribute heroin, all as part of a racketeering conspiracy, U.S. Attorney Craig Carpenito announced.
Another Grape Street Crips gang member was sentenced to 25 years in prison for a RICO (Racketeer Influenced and Corrupt Organizations Act) conspiracy that involved shooting at rival gang members and conspiracies to distribute heroin and crack-cocaine. Judge Arleo also sentenced him to 10 years of supervised release.
Tony Phillips, a/k/a “Blue,” 28, was convicted at trial of 10 counts in a sixth superseding indictment, including murder in aid of racketeering, attempted murder in aid of racketeering, RICO conspiracy, using firearms during crimes of violence, and conspiracy to distribute one kilogram or more of heroin. The jury returned the verdict on the fourth day of deliberations following a two-month trial before U.S. District Judge Madeline Cox Arleo, who imposed the two life sentences, plus 35 years in prison, today in Newark federal court.
Justin Carnegie, a/k/a “Dew Hi,” a/k/a “Dew,” a/k/a “D,” 31, previously pleaded guilty before Judge Arleo in Newark federal court to five counts in the sixth superseding indictment charging him with RICO conspiracy, conspiracy to commit aggravated assault with a dangerous weapon, conspiracy to possess a firearm, and separate conspiracies to distribute one kilogram of heroin and 280 grams or more of crack-cocaine. Judge Arleo sentenced Carnegie to 25 years in prison.
Phillips and Carnegie were charged in November 2016 in a 22-count indictment charging 14 members and associates with, among other things, seven murders, numerous attempted murders, and numerous other violent and drug trafficking crimes committed as part of the racketeering conspiracy. Thirteen of the 14 defendants charged in the indictment have been convicted and one is awaiting trial.
Another 66 members and associates of the Grape Street Crips who were arrested in a coordinated takedown in May 2015 were separately charged with drug trafficking, physical assaults, and witness intimidation, and all have been convicted.
According to the documents filed in this case and other cases and the evidence presented at trial:In early 2013, the leader of the New Jersey Grape Street Crips authorized Tony Phillips and other gang members to murder Tariq Johnson because Johnson had grown too close to Almalik Anderson, one of the gang’s chief rivals. Acting on these orders, on May 3, 2013, Phillips and another gang member shot Tariq Johnson multiple times in the head, while the Johnson sat in front of them inside a car. Phillips and his conspirators then dumped Johnson’s body on a deserted street in Newark.
On Oct. 27, 2013, again acting on their gang leader’s orders, Phillips and three other gang members repeatedly shot and nearly killed Almalik Anderson and Saidah Goines, a bystander who was inside Anderson’s car.
In addition to orchestrating these acts of violence, Phillips conspired with other gang members to distribute one kilogram or more of heroin.
Carnegie admitted that on Oct. 7, 2013, he and other gang members sought to avenge the murder of a fellow gang member who had recently been killed by rivals. Carnegie and his fellow gang members travelled to the area of Avon Avenue in Newark, where one of them fired 14 rounds in an attempt to shoot members of the rival gang. After returning to their staging area after the shooting, Carnegie and others fled law enforcement officers, who attempted to arrest them and their fellow gang members.
Carnegie and other gang members frequently used social media to promote the gang’s reputation for violence and drug trafficking. For example, Carnegie has the phrase “187 on all rats” tattooed on his back, a phrase meaning that cooperating witnesses ought to be murdered (“187” is the California penal code section that defines the crime of murder). Carnegie also has bragged in a rap song, “Fuck the Feds, they ain’t stoppin’ me.”Carnegie frequently carried and stockpiled firearms in furtherance of the gang’s activities. In May 2010, Carnegie stored a loaded Romarm SA Cugir 7.62x39 assault rifle and an American Industries Calico M100 .22LR carbine, along with ammunition for both weapons, in Orange, New Jersey.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson with the investigation. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sherriff’s Office, under the direction of Armando B. Fontoura, for their work on the caseThe government is represented by Osmar J. Benvenuto, Chief of the Organized Crime and Gangs Unit, and Assistant U.S. Attorney Richard J. Ramsay of the Appeals Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement 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.
Defense counsel:
Phillips: Gary Cutler Esq., New York
Carnegie: Isaac Wright Jr. Esq., NewarkUnion Officer Sentenced to Prison for EmbezzlementRead the Press Release
A former Secretary-Treasurer of a railroad employee union was sentenced today in U.S. District Court in Seattle to 18 months in prison and $217,260 in restitution for embezzling from his union, announced U.S. Attorney Annette L. Hayes. GREGORY NORMAND, 58, of Marysville, Washington, pleaded guilty in July 2018 to embezzlement from a labor organization and two counts of making false statements to the United States. NORMAND was Secretary-Treasurer with the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART) Union 324 for about six years. Over that time he stole more than $248,000. At sentencing U.S. District Judge Robert S. Lasnik said the crime was “both a financial and spiritual loss,” to the union members who felt they had been betrayed.
“Union members trusted this defendant to be a careful steward of their union dues, instead he lined his pockets with their hard-earned wages,” said U.S. Attorney Annette L. Hayes. “I commend the Department of Labor - Office of Labor Management Standards for its dogged efforts to ensure that union officials comply with the law and are good stewards of union funds.”
According to records filed in the case, NORMAND used a number of different strategies to embezzle from the union bank accounts. In multiple instances he made payments to himself indicating he had missed work during a given month due to union business. In fact he had not missed any regular work time during that month and was not entitled to the “make-whole” pay. A second embezzlement strategy involved writing checks to himself, at the same time he made electronic transfers for the same amount of money into his personal account – essentially paying himself twice. NORMAND repeatedly altered checks he wrote to himself, making them for thousands of dollars more than authorized. For example changing a check for $212 into a check for $6,212. Finally, NORMAND wrote duplicate reimbursement checks to himself for monies garnished by the IRS.
NORMAND repeatedly lied on Department of Labor reporting forms regarding the amount of money he had been paid by the union. When confronted by a union auditor in May 2017, NORMAND minimized his theft by tens of thousands of dollars and attempted to justify his actions.
Speaking in court today members of the union described how the union was suddenly broke due to the embezzlement – that it could not pay the bills. “We went without so Normand could have his $250,000 a year,” one member said. A second spoke about the damage from “lies, deceit and betrayal.”
NORMAND was charged criminally in October 2017. He has repaid approximately $30,000 of the money he stole.
The case was investigated by the Department of Labor- Office of Labor Management Standards (DOL-OLMS).
The case was prosecuted by Assistant United States Attorney Stephen Hobbs.
U.S. Soldier Sentenced to 25 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
Ikaika Erik Kang, 35, a Sergeant First Class in the U.S. Army formerly stationed at Schofield Barracks, was sentenced today to 25 years in prison for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Kang was sentenced to 240 months on Counts 2, 3 and 4 to run concurrently, and 60 months on Count 1, to run consecutively, for a total of 300 months in prison. As part of his sentence, Kang will serve 20 years of supervised release following his incarceration.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the District of Hawaii Kenji M. Price, and Special Agent in Charge Sean L. Kaul of the FBI’s Honolulu Field Office announced the sentence.
At sentencing, Senior U.S. District Judge Susan Oki Mollway accepted a plea agreement between the United States and Kang, in which Kang had agreed to serve 25 years of imprisonment and a period of at least 20 years of supervised release and up to life. In imposing sentence, Judge Mollway said that Kang’s conduct was “extremely serious” and “had the potential to be disastrous.” She also noted that the undercover agents gave Kang “a number of chances to return the classified information and leave the training, but [he] didn’t do that.”
“Kang swore to defend the United States as a member of our military, but betrayed his country by swearing allegiance to ISIS and attempting to provide it material support,” said Assistant Attorney General Demers. “With the sentence imposed today, he is being held accountable for his betrayal and his crimes. I want to thank all of the agents, analysts and prosecutors who are responsible for this case.”
“Defending our country from terrorism is a core mission of the Department of Justice,” said U.S. Attorney Kenji Price. “Today’s sentence is the result of the hard work and dedication of all of the federal agents and prosecutors who work tirelessly every day to keep our community safe.”
“This is the first case in the State of Hawaii where someone was convicted for providing material support to terrorism,” said Special Agent in Charge Kaul. “This should serve as reminder that even though we are 2,500 miles from the U.S. Mainland these crimes can and do happen everywhere. I would like to personally thank the United States Attorney’s Office, the National Security Division’s Counterterrorism Section, the United States Army, the Naval Criminal Investigative Service, the Honolulu Police Department, and the entire Joint Terrorism Task Force Community here in Hawaii for bringing this investigation to a successful conclusion. Today, our community is a safer place due to their tireless efforts.”
According to court documents and information presented in court, Kang became sympathetic to ISIS by at least early 2016. He regularly watched ISIS propaganda videos online, for as long as four to five hours a day, or more. Kang made numerous statements in support of ISIS and expressed a desire to join ISIS. He spoke approvingly and in detail about committing specific acts of violence against others, including by attacking large public gatherings, such as the Honolulu Christmas Parade, and a parade at Schofield Barracks. At the time Kang made these statements, he owned an AR-15-style assault rifle and a pistol, both of which he kept at his residence on Oahu.
In late June and early July of 2018, Kang met numerous times with undercover FBI agents who he believed had connections to ISIS. He provided them with sensitive, non-public military documents, some of which were classified at the SECRET level, which he intended that they later provide to ISIS. He also provided them with a commercially-purchased small aerial drone, a military chest rig, and other military-style clothing and gear. Kang then met two additional undercover FBI personnel, one who purported to be a high-ranking ISIS leader, or “sheikh,” and another who played the role of an ISIS fighter. Kang led them in a two-hour, step-by-step military combatives training session, in order to train the purported ISIS member in hand-to-hand fighting techniques and marksmanship.
Kang was given numerous opportunities by the undercover agents to return the classified military documents, and to stop and leave the training, which he did not do. Instead, on July 8, 2017, Kang swore an oath of loyalty, known as “bayat,” to ISIS and its leader, Abu Bakr al-Baghdadi, in a ceremony conducted by the purported ISIS sheikh. After the ceremony, Kang said that he wanted to get his rifle and go to downtown Honolulu and Waikiki strip and start shooting. Kang was subsequently arrested and taken into custody.
The case was investigated by the Joint Terrorism Task Force in Honolulu, the FBI, and the U.S. Army, Criminal Investigative Division.
This case was prosecuted by Assistant U.S. Attorneys Kenneth M. Sorenson and Marc A. Wallenstein of the District of Hawaii, and Trial Attorney Taryn M. Meeks of the National Security Division’s Counterterrorism Section.
U.S. Soldier Sentenced to 25 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
HONOLULU – Ikaika Erik Kang, 35, a Sergeant First Class in the U.S. Army formerly stationed at Schofield Barracks, was sentenced today to 25 years in prison for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Kang was sentenced to 240 months on Counts 2, 3, and 4 to run concurrently, and 60 months on Count 1, to run consecutively, for a total of 300 months (25 years) in prison. As part of his sentence, Kang will serve 20 years of supervised release following his incarceration
Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the District of Hawaii Kenji M. Price, and Special Agent in Charge Sean L. Kaul of the FBI’s Honolulu Field Office announced the sentence.
At sentencing, Senior U.S. District Judge Susan Oki Mollway accepted a plea agreement between the United States and Kang, in which Kang had agreed to serve 25 years of imprisonment and a period of at least 20 years of supervised release and up to life. In imposing sentence, Judge Mollway said that Kang’s conduct was “extremely serious” and “had the potential to be disastrous.” She also noted that the undercover agents gave Kang “a number of chances to return the classified information and leave the training, but [he] didn’t do that.”
“Kang swore to defend the United States as a member of our military, but betrayed his country by swearing allegiance to ISIS and attempting to provide it material support,” said Assistant Attorney General Demers. “With the sentence imposed today, he is being held accountable for his betrayal and his crimes. I want to thank all of the agents, analysts and prosecutors who are responsible for this case.”
“Defending our country from terrorism is a core mission of the Department of Justice,” said U.S. Attorney Kenji Price. “Today’s sentence is the result of the hard work and dedication of all of the federal agents and prosecutors who work tirelessly every day to keep our community safe.”
“This is the first case in the State of Hawaii where someone was convicted for providing material support to terrorism,” said Special Agent in Charge Kaul. “This should serve as reminder that even though we are 2,500 miles from the U.S. Mainland these crimes can and do happen everywhere. I would like to personally thank the United States Attorney’s Office, the National Security Division’s Counterterrorism Section, the United States Army, the Naval Criminal Investigative Service, the Honolulu Police Department, and the entire Joint Terrorism Task Force Community here in Hawaii for bringing this investigation to a successful conclusion. Today, our community is a safer place due to their tireless efforts.”
According to court documents and information presented in court, Kang became sympathetic to ISIS by at least early 2016. He regularly watched ISIS propaganda videos online, for as long as four to five hours a day, or more. Kang made numerous statements in support of ISIS and expressed a desire to join ISIS. He spoke approvingly and in detail about committing specific acts of violence against others, including by attacking large public gatherings, such as the Honolulu Christmas Parade, and a parade at Schofield Barracks. At the time Kang made these statements, he owned an AR-15-style assault rifle and a pistol, both of which he kept at his residence on Oahu.
In late June and early July of 2018, Kang met numerous times with undercover FBI agents who he believed had connections to ISIS. He provided them with sensitive, non-public military documents, some of which were classified at the SECRET level, which he intended that they later provide to ISIS. He also provided them with a commercially-purchased small aerial drone, a military chest rig, and other military-style clothing and gear. Kang then met two additional undercover FBI personnel, one who purported to be a high-ranking ISIS leader, or “sheikh,” and another who played the role of an ISIS fighter. Kang led them in a two-hour, step-by-step military combatives training session, in order to train the purported ISIS member in hand-to-hand fighting techniques and marksmanship.
Kang was given numerous opportunities by the undercover agents to return the classified military documents, and to stop and leave the training, which he did not do. Instead, on July 8, 2017, Kang swore an oath of loyalty, known as “bayat,” to ISIS and its leader, Abu Bakr al-Baghdadi, in a ceremony conducted by the purported ISIS sheikh. After the ceremony, Kang said that he wanted to get his rifle and go to downtown Honolulu and Waikiki strip and start shooting. Kang was subsequently arrested and taken into custody.
The case was investigated by the Joint Terrorism Task Force in Honolulu, the FBI, and the U.S. Army, Criminal Investigative Division.
This case was prosecuted by Assistant U.S. Attorneys Kenneth M. Sorenson and Marc A. Wallenstein of the District of Hawaii, and Trial Attorney Taryn M. Meeks of the National Security Division’s Counterterrorism Section.
Two Teenagers Sentenced to Prison Terms for Carjackings in Southeast WashingtonRead the Press Release
WASHINGTON – Deandre Bullock, 17, and Darius McNeal, 18, both of Washington, D.C., were sentenced today to prison terms on charges stemming from a pair of violent crimes committed earlier this year in Southeast Washington, U.S. Attorney Jessie K. Liu announced.
Bullock was 16 and McNeal was 17 at the time of the crimes. They were charged as adults because of the nature of the offenses, and both pled guilty in April 2018.
Bullock pled guilty in the Superior Court of the District of Columbia to one count of carjacking, one count of carrying a pistol without a license, and one count of robbery. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 10 to 12 years in prison. The Honorable Todd E. Edelman accepted the plea and sentenced Bullock to 10 years in prison. McNeal pled guilty to two counts of armed robbery. The plea, which also was contingent upon the Court’s approval, called for an agreed-upon sentence of nine to 10 years in prison. Judge Edelman accepted the plea and sentenced McNeal to nine years in prison.
Following their prison terms, both defendants will be placed on three years of supervised release.
Bullock and McNeal pled guilty to an incident that took place shortly after 9 p.m. on Feb. 4, 2018, at the Benco Shopping Center located at East Capitol Street SE and Benning Road SE. According to the government’s evidence, the victim parked his Jeep Compass in front of a carry-out restaurant at the shopping center and went inside the store to pick up food. As the victim returned to his vehicle and got back into the driver’s seat, Bullock, McNeal and three other individuals approached his vehicle. McNeal approached the passenger side. Bullock and two of the other individuals approached the driver side and worked together to pull the victim from the driver’s seat of his vehicle, drag him to the ground, and assault him. Bullock, McNeal, and the others got into the victim’s vehicle and drove away.
Bullock and McNeal also pled guilty to an incident that took place at about 6 p.m. on Feb. 18, 2018, near Johnson Middle School in the 3100 block of Bruce Place SE. According to the government’s evidence, McNeal communicated with the victims about buying a pair of shoes through the application OfferUp and told the victims to come to the school. When the victims arrived, McNeal and another member of the group approached them and asked to see the shoes for sale. One of the victims showed the shoes and asked for the money. Bullock and another individual then approached. Bullock was wearing a mask and had a black and silver handgun with a laser sight on it. Bullock ordered one of the victims out of the car and to the ground at gunpoint. The other individual ordered the other victim out of the driver’s seat of the car, demanded her car keys, and took her phone. One of the victims struggled with Bullock over the gun, while the other defendants told Bullock to “shoot him.” The gun went off, firing one round that hit McNeal in the leg. The victims ran away, and Bullock, McNeal and two other individuals got into the victims’ vehicle and followed them.
In announcing the sentences, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tiffany Fogle and Victim/Witness Advocate James Brennan. Finally, U.S. Attorney Liu commended Assistant U.S. Attorney Natasha Smalky, who investigated and prosecuted the case with assistance from Assistant U.S. Attorney Jennifer Kerkhoff.
Texas Man Pleads Guilty to Trafficking Heroin in New MexicoRead the Press Release
ALBUQUERQUE – Irving Daniel Ramirez, 25, of El Paso, Texas, pled guilty yesterday in Las Cruces, N.M., federal court to trafficking nearly ten pounds of heroin in New Mexico.
New Mexico State Police (NMSP) officers and Homeland Security Investigations (HSI) agents arrested Ramirez in Aug. 2018, after locating approximately 4.4 kilograms (9.7 pounds) of heroin concealed in Ramirez’s vehicle following a traffic stop on Highway 26 in Dona Ana County, N.M.
During yesterday’s proceedings, Ramirez pled guilty to a felony information charging him with possession of heroin with intent to distribute. He admitted that on Aug. 25, 2018, law enforcement agents located seven bundles of heroin weighing a total of approximately 4.4 kilograms, hidden in his vehicle. Ramirez also admitted that he was hired to transport the drugs, and intended to deliver the heroin to another individual in Albuquerque.
At sentencing, Ramirez faces a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison. Ramirez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by HSI and the NMSP and prosecuted by Assistant U.S. Attorney Sarah M. Davenport as part of the Department of Justice’s commitment, in partnership with other law enforcement agencies, to combat the illegal manufacturing and distribution of methamphetamine, heroin and prescription opioids and to establish new programs to provide services to victims of the opioid crisis.
Stroudsburg Man Sentenced to 10 Years’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on November 30, 2018, United States District Court Judge Malachy E. Mannion sentenced Evan Watkins, age 30, of Stroudsburg, Pennsylvania, to 10 years’ imprisonment on drug trafficking charges.
According to United States Attorney David J. Freed, Watkins pled guilty to distributing and possessing with the intent to distribute over 100 grams of heroin between June 2015 and March 2017, in Monroe County, Pennsylvania. Watkins admitted that he was responsible for the trafficking of between 100 and 400 grams of heroin over a nearly two-year span. One hundred grams of heroin is the equivalent of approximately 4,000 individual doses of heroin.
The case was investigated by the Federal Bureau of Investigation and the Stroud Area Regional Police Department. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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.
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Sex Offenders Held Accountable in Federal Court for Failing to RegisterRead the Press Release
POCATELLO - James Michael Hogan, Jr., 50, of Casper, Wyoming, and Levi Joseph Lupe, 49, of Lapwai, Idaho, were sentenced to federal prison terms last week of 21 months and 18 months, respectively, U.S. Attorney Bart M. Davis announced. Hogan, sentenced in Pocatello by U.S. District Judge David C. Nye, and Lupe, sentenced in Coeur d’Alene by Senior U.S. District Judge Edward J. Lodge, were also ordered to serve five years of supervised release upon completion of their prison sentences. Hogan and Lupe pleaded guilty in July.
According to court records, in 1996, Hogan was convicted of rape in Georgia, and, in 1994, Lupe was convicted of sexual abuse of a minor in Idaho. Although both men are required under federal law to register as sexual offenders where they reside, neither did. The cases were prosecuted in federal court because Hogan traveled across state lines, moving to Idaho without registering, and Lupe’s prior sex conviction was a federal case.
Another sex offender, Michael Keith Pilgrim, 44, of Preston, Idaho, pleaded guilty on Friday, November 30th, in Pocatello to failing to register in Idaho after crossing state lines and living in Idaho for several months. In court, Pilgrim acknowledged that he was convicted of sex abuse of a child in 1999, and, like Hogan and Lupe, he was required to register as a sex offender.
The crime of failure to register as a sex offender is punishable by up to ten years in prison, a maximum fine of $250,000, and up to a life term of supervised release. Pilgrim is scheduled to be sentenced in federal court in Pocatello on March 4, 2019, before U.S. District Judge David C. Nye.
The cases were investigated by the U.S. Marshals Service, with the assistance of local and state law enforcement agencies in both eastern and northern Idaho.
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Seabrook Resident Sent to Federal Prison for 50 Years for Producing Child PornographyRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that Richard Silvestri, 49, of Seabrook, New Hampshire, was sentenced to 50 years in federal prison for producing child pornography.
According to documents filed in the case and statements made at the sentencing hearing, sometime before December 13, 2017, Silvestri produced visual depictions of an eight-year-old minor female engaging in sexually explicit activity. Silvestri used a Samsung cellular phone to produce the images and he shared those images with others. An undercover agent of the Federal Bureau of Investigation based in Alaska discovered Silvestri’s activities and sent an investigative lead to the Bedford, New Hampshire FBI office. FBI agents obtained a criminal complaint charging Silvestri with producing child pornography and arrested him on December 13, 2017.
Silvestri pleaded guilty to two counts of producing child pornography on June 15, 2018.
“Protecting children from harm is one of the highest duties of law enforcement,” said U.S. Attorney Murray. “Those who abuse children by producing child pornography cause grave harm to their victims and to our community. We will always be aggressive in our efforts to identify and prosecute those who rob children of their innocence by producing child pornography.”
"Mr. Silvestri repeatedly abused an innocent child, and with this sentence, he's finally being held accountable for his detestable actions. The FBI will continue to work with our law enforcement partners to do everything we can to protect our children from individuals who prey on our most vulnerable,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
The FBI and the Seabrook Police Department participated in the investigation of this case. Staff from the Rockingham County Child Advocacy Center also assisted in the case. Assistant United States Attorneys Donald A. Feith and Helen White Fitzgibbon prosecuted the case.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Saratoga County Man Sentenced to 18 Months for Failing to Update His Sex Offender RegistrationRead the Press Release
ALBANY, NEW YORK – Jonathon Rule, age 28, of Moreau, New York, was sentenced today to 18 months in prison for failing to update his sex offender registration.
The announcement was made by United States Attorney Grant C. Jaquith and David L. McNulty, United States Marshal for the Northern District of New York.
Senior United States District Judge Gary L. Sharpe also sentenced Rule to 5 years of supervised release, to begin following his term of imprisonment.
Rule was charged with violating the federal Sex Offender Registration and Notification Act (“SORNA”), which requires a convicted sex offender to register, and keep that registration current, wherever he or she resides.
As part of his guilty plea, Rule admitted that he was convicted of criminal sexual conduct in the first degree in Michigan, which required him to register as a sex offender for the rest of his life. Rule further admitted that he moved from Michigan to Moreau, New York, in January 2016, and lived there for approximately 2 years prior to being arrested by the New York State Police, without ever registering in New York or updating his registration in Michigan.
This case was investigated by the United States Marshals Service Sex Offender Investigation Branch, the New York State Police, the Saratoga County District Attorney’s Office, and the Saratoga County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Rochester Man Sentenced for Defrauding Would-Be Vacation Home Renters Out of Thousands of DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that Henry T. Dean, III, 58, of Beaver Dams, NY, who was convicted of wire fraud, was sentenced to serve 36 months in prison by U.S. District Judge Elizabeth A. Wolford. The judge also ordered the defendant to pay restitution totaling $120,000.
Assistant U.S. Attorney Melissa Marangola, who handled the case, stated that between September 2014 and October 2016, the defendant engaged in a scheme to defraud renters of vacation properties located in the Finger Lakes Region in New York State. Dean executed the scheme by advertising vacation homes on internet websites such as FingerLakesGuesthouses.com, Homeaway.com, and VacationRentalsByOwner.com.
The defendant advertised at least two homes in the Finger Lakes Region on the websites as large vacation homes with various amenities that were available for rentals upon receipt of a fully refundable monetary deposit by any interested customers. Dean accepted payment from customers via wire money transfers or online credit card payments. In reality, the property advertised as the Finger Lakes Guesthouse (FLGH) property was under significant construction, and was not available for rent. A second property, advertised as the Watkins Glen Guesthouse (WGGH), was actually owned by another individual who never gave the defendant permission to rent the property or advertise it for rent.
Dean promised to maintain deposits received from customers in an escrow account, which did not exist. Because of the status of the properties, the defendant later cancelled the reservations for many of the customers and refused to refund payment. Other customers became aware, in advance of their scheduled vacations, that the properties advertised by Dean were not accurately described, and they attempted to cancel their reservations. The defendant however refused to refund their money as well.
The financial losses to the more than 20 victims totaled approximately $137,272.46.
The arrest was the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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Ringleader of Drug Trafficking Conspiracy Sentenced to PrisonRead the Press Release
RICHMOND, Va. – A North Carolina man was sentenced to 30 years in prison for his role as the leader of a lengthy and extensive drug trafficking conspiracy.
According to court documents, Deron Radarius Powell, 34, was the ringleader of a drug trafficking organization which operated in Emporia and the surrounding area dating back to 2013. During the conspiracy, Powell along with several other co-conspirators, distributed large amounts of crack cocaine, powder cocaine, heroin and marijuana to hundreds of customers in Virginia and North Carolina.
Name, Age
Hometown
Convictions
Sentence
Deron R. Powell, 34
Roanoke Rapids, NC
Conspiracy to Distribute Cocaine
30 years
Marvin A. Baskerville, 44
Richmond
Conspiracy to Distribute Cocaine
17 years
Steve A. Hicks, 42
Emporia
Conspiracy to Distribute Cocaine
15 years
Hershell L. Grant, 52
Roanoke Rapids, NC
Conspiracy to Distribute Cocaine
14 years
Dexter O. Banks, 30
Emporia
Conspiracy to Distribute Cocaine
11 years
Crystal L. Mangrum, 29
Emporia
Conspiracy to Distribute Cocaine
10 years
Brittany L. Owens, 28
Emporia
Conspiracy to Distribute Cocaine
10 years
Vincent D. Anderson, 41
Emporia
Conspiracy to Distribute Cocaine
10 years
Ronnie Rawles, 38
Emporia
Conspiracy to Distribute Cocaine
7 years
Robert W. Little III, 70
Emporia
Conspiracy to Distribute Cocaine
5 years
Cynthia M. Fox, 51
Emporia
Conspiracy to Distribute Cocaine
4 years
Tracy M. Moody, 53
Roanoke Rapid, NC
Conspiracy to Distribute Cocaine
4 years
The case was investigated by the FBI’s Richmond Area Violent Enterprises Task Force, as part of the Organized Crime Drug Enforcement Task Force’s (OCDETF), Operation Bulls Eye. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and John J. Lenkart, Acting Special Agent in Charge of the FBI’s Richmond Field Office, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s Washington Field Division, Ricky Pinksaw, Chief of the Emporia Police Department, William T. Jarratt Jr., Sheriff of the Greensville County, and Colonel Gary T. Settle, Superintendent of the Virginia State Police, made the announcement after sentencing yesterday by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Peter S. Duffey prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-80.
Richfield Man Sentenced to Fourteen Years in Federal Prison for Violent Armed Robbery of Red and White TaxicabRead the Press Release
United States Attorney Erica H. MacDonald today announced sentencing of MARIO LUIS JONES, 27, for the violent armed robbery of a Red & White taxicab in Minneapolis, Minnesota. JONES pleaded guilty on May 8, 2018, and was sentenced to 168 months imprisonment, on December 3, 2018, by Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
“The defendant put many lives in danger. He has a lengthy criminal record, and chose to commit this offense while on probation for a previous sexual conduct offense,” said United States Attorney Erica H. MacDonald. “I am grateful that the Court recognized his violent conduct and sentenced him accordingly.”
“There is no room for this kind of behavior in our communities, and this sentence is fitting for Jones’ inexcusable acts,” said Acting Special Agent in Charge Kirk Howard of the ATF St. Paul Field Division. “The prevalence of firearm-related crime is an ongoing issue, and ATF, with the help of our state and local partners, will continue to focus on bringing justice to the victims of violent offenders.”
As admitted by the defendant in his guilty plea and in other documents filed in court, on November 27, 2017, JONES got into a Red & White taxicab near the 2800 block of Pillsbury Avenue South in Minneapolis. JONES told the taxicab driver to take him to 5773 Bossen Terrace in Minneapolis, however, when they arrived, JONES told the driver that it was the wrong address. JONES then pulled out a .40 caliber semi-automatic pistol with a laser scope, placed the barrel near the driver’s head, and demanded that the driver stop the car and open the trunk. JONES got out of the taxi and walked to the trunk area. Fearing that JONES was going to kill him, the driver ran off. JONES fired the firearm and then drove off in the taxicab.
As admitted by the defendant in his guilty plea and in other documents filed in court, JONES was located driving southbound on Interstate 35 in the Lakeville area. When law enforcement officers approached JONES, he sped off at speeds exceeding 100 miles per hour. JONES eventually crashed into a swampy ditch and was later apprehended and arrested.
U.S. Attorney MacDonald thanked the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, and the Lakeville Police Department who investigated this case and Assistant U.S. Attorney Thomas M. Hollenhorst who prosecuted the case.
Defendant Information:
MARIO LUIS JONES, 27
Richfield, Minn.
Convicted:
- Interference with commerce by robbery, 1 count
- Using, carrying, and discharging a firearm during and in relation to a crime of violence, 1 count
Sentenced:
- 168 months imprisonment (terms served consecutively)
- 5 years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Revere Man Charged with Counterfeit Goods and ServicesRead the Press Release
BOSTON - A Revere man was charged today in federal court in Boston in connection with importing and selling counterfeit apparel.
Paul G. Adri, 34, was charged with one count of trafficking in counterfeit goods and services, one count of smuggling goods into the United States, one count of conspiracy and one count of wire fraud. Adri was arrested today and released on conditions following an initial appearance.
According to the charging document, Adri improperly utilized trademarks held by Adidas, Nike, the NFL, and the NBA, among others, and ignored two separate notices from U.S. Customs and Border Protection relating to his illegal counterfeiting activities.
The charge of trafficking in counterfeit goods and services provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of no more than $2 million. The charges of smuggling goods into the United States and wire fraud each provide for a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of no more than $250,000, or twice the gross gain or loss. The charge of conspiracy provides for a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of no more than $250,000, or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Mackenzie Queenin of Lelling’s Cybercrime Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pittsburgh Man Charged with Attempted Possession of HeroinRead the Press Release
PITTSBURGH, Pa - A local man has been indicted by a federal grand jury in Pittsburgh on charges of attempted possession with the intent to distribute heroin, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Farren Mason, 59, of of Pittsburgh, Pa., as the sole defendant.
According to the Indictment presented to the court, on November 9, 2018, Mason attempted to possess a quantity of heroin with the intent to distribute it.
The law provides for a maximum total sentence of not more than 20 years to a maximum of life in prison, a fine of not more than $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, of the defendant.
Assistant United States Attorney Michael Leo Ivory is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the North Versailles Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Physician and Medical Practice Plead Guilty to Making a False Statement to a Financial Institution and Health Care FraudRead the Press Release
WILMINGTON, Del. – On November 30, 2018, Dr. Zahid Aslam and Fast Care Medical Aid Unit, LLC (dba Got-A-Doc Walk-In Medical Centers) pleaded guilty to Making a False Statement to a Financial Institution and Health Care Fraud, respectively. The plea agreements are part of a global settlement with the government in which Dr. Aslam has also agreed to pay $3.07 million to resolve his civil liability resulting from the operation of two of his medical practices, Fast Care and Amna Medical Center, LLC (dba Alpha Medical Center). The announcement was made today by United States Attorney David C. Weiss of the District of Delaware.
Dr. Aslam pleaded guilty to Making a False Statement to a Financial Institution for making a materially false statement in a loan application. The government alleged that Dr. Aslam recruited a nominee borrower to sign a loan application to WSFS Bank because Aslam knew that he would not qualify for a loan given his credit score. The government further charged that the loan application falsely stated that the nominee borrower was the owner of Tri-State MRI & Imaging, LLC, which was in fact controlled by Dr. Aslam, and also falsely stated that the nominee had funded construction costs for the business. Dr. Aslam is scheduled to be sentenced May 22, 2019.
On the same day, Fast Care, another medical business controlled by Dr. Aslam, pleaded guilty to one count of Health Care Fraud. Fast Care owns and operates multiple walk-in medical centers in Delaware and Maryland doing business as "Got-A-Doc Walk-In Medical Centers." The government alleged that Fast Care submitted claims to Medicare for services that falsely stated the services were rendered by a physician, when in many cases the services were performed by a physician assistant, which is reimbursed by Medicare at a lower rate. In accordance with Fast Care’s plea agreement with the government, the U.S. District Court for the District of Delaware imposed a fine of $100,000.
As part of the global resolution with the government, Dr. Aslam also entered into a civil settlement agreement under which he agreed to pay $3.07 million to the federal government, the State of Delaware, and the State of Maryland to resolve claims that he caused Fast Care and Amna Medical Center to submit false claims to government health care programs. Amna Medical Center is also controlled by Dr. Aslam and does business under the name "Alpha Medical Center." The civil settlement resolved allegations that Fast Care and Amna Medical Center submitted claims for services to government health care programs for laboratory services that were not medically necessary, did not qualify for payment, and/or were not provided; medical and/or counseling services that listed the wrong rendering provider and/or did not qualify for payment because they were not rendered by an eligible provider; and medical services that listed the wrong service performed and/or lacked documentation to support the claimed service. The federal share of the civil settlement is $1.72 million, and the state Medicaid share of the civil settlement is $1.37 million.
Additionally, Dr. Aslam has agreed to be excluded from Medicare, Medicaid, and all other Federal health care programs. He has also agreed to surrender his medical licenses.
"My office is committed to combatting financial fraud, whether it affects our nation’s financial institutions or our government healthcare programs," said United States Attorney David Weiss. "We will continue to hold both companies and individuals accountable, using all of the criminal and civil remedies available to us."
"Patients should receive medical services that are necessary, and provided according to Medicare rules," said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. "Dr. Aslam has been brought to justice and my agency has barred him from billing Medicare, Medicaid, and all other federal healthcare programs."
Except for the conduct admitted in connection with the criminal pleas, the claims resolved by the civil agreement are allegations only, and there has been no determination of civil liability.
The global resolution was handled by the U.S. Attorney’s Office for the District of Delaware, the State of Delaware Medicaid Fraud Control Unit, the State of Maryland Medicaid Fraud Control Unit, and the HHS Office of the Inspector General. This matter was investigated by the FBI, the IRS – Criminal Investigation Division, the HHS Office of the Inspector General, and the Delaware Medicaid Fraud Control Unit.
Pearl Man Pleads Guilty to Heroin ConspiracyRead the Press Release
Gulfport, Miss – Howard Lee Walker, 30, of Pearl, Mississippi, pled guilty today, before U.S. District Judge Sul Ozerden, to conspiring to possess with intent to distribute heroin, announced U.S. Attorney Mike Hurst and Assistant Special Agent in Charge Derryle Smith with the Drug Enforcement Administration.
On July 6, 2018, Biloxi police responded to a call about a female attempting to pass a $100 counterfeit bill at Walmart. When officers arrived, they stopped a van driven by the female, who they identified as Erica Wooldridge of Jackson, Mississippi. Walker was a passenger in Wooldridge’s vehicle. Officers were notified that both individuals had warrants for their arrest.
Upon receiving consent to search Wooldridge’s vehicle, officers located a loaded 9mm pistol under the front console and numerous pills throughout the vehicle. Walker admitted to riding with Wooldridge from Jackson to Biloxi to sell the pills. Wooldridge and Walker thought they were selling Percocet, or Oxycodone; however, after testing, analysts determined the pills actually contained heroin and aspirin.
Walker will be sentenced by Judge Ozerden on March 7, 2019, and faces a maximum penalty of twenty years in prison and a $1,000,000 fine.
Wooldridge pled guilty on October 4, 2018, and will be sentenced on January 10, 2019. She faces a maximum penalty of 25 years in prison and a $1,000,000 fine.
The case was investigated by DEA and the Biloxi Police Department. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.