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4 December 2018
Florida Home Health Services Company Owner and Co-Conspirator Plead Guilty for Roles in $8.6 Million Health Care Fraud SchemeRead the Press Release
Two Miami, Florida residents pleaded guilty today to health care fraud charges for their roles in an $8.6 million health care fraud scheme.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Miami Air and Marine Branch Director Martin G. Wade of the U.S. Customs and Border Protection (CBP) Air and Marine Operations made the announcement.
Alexander Ros Lazo, 54, an owner and operator of T.L.C. Health Services Inc., a home health agency, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Jose E. Martinez of the Southern District of Florida. Misleidy Ibarra, 46, also of Miami, a licensed massage therapist, pleaded guilty before Judge Martinez to one count of conspiracy to commit health care fraud. Sentencing has been scheduled for Feb. 5, 2019 before Judge Martinez.
As part of his guilty plea, Ros Lazo admitted that he paid kickbacks and bribes to his co-conspirators in exchange for home health services prescriptions and the referral of Medicare beneficiaries to T.L.C. Health Services, a company based in Miami. He further admitted that he and his co-defendant, Misleidy Ibarra, agreed with their co-conspirators to commit health care fraud by arranging for Ibarra to render therapy services on behalf of licensed therapists despite the fact that they knew she was not licensed to render the physical and occupational therapy services to the Medicare beneficiaries and billed Medicare for those services. As part of her guilty plea, Ibarra admitted to conspiring with Ros Lazo to commit health care fraud by rendering physical therapy services to Medicare beneficiaries when Ibarra was not licensed to provide these services. Ros Lazo admitted that as a result of the fraudulent claims, Medicare paid $8.6 million in benefits that it otherwise would not have. Ros Lazo was charged along with Ibarra in an indictment returned on June 21, 2018.
The case was investigated by the FBI, HHS-OIG and CBP Air and Marine Operations. Assistant U.S. Attorney Yisel Valdes of the Southern District of Florida and Trial Attorney Alexander Kramer of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Felon Convicted After Federal Trial of Committing Three Armed Robberies in Less Than One HourRead the Press Release
Greenbelt, Maryland – A federal jury convicted James Lorenzo Thomas, Jr., age 32, of Oxon Hill, Maryland, for three counts of armed commercial robbery, three counts of brandishing a firearm during a crime of violence, and one count of being a felon in possession of a firearm. The jury’s verdict was returned on December 3, 2018.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to evidence presented at his four-day trial, in less than one hour on April 6, 2017, Thomas and a co-defendant robbed businesses in Camp Springs, Clinton, and District Heights, Maryland. In each robbery the defendants brandished a firearm. In the first two robberies Thomas and his co-defendant stole cash from the business, and in one robbery also took a victim’s cell phone. At the location of their last robbery, a game store, Thomas and his co-defendant stole PS4s, virtual reality headsets, and an Xbox – one of which had a GPS tracker that led the police to the robbers less than 20 minutes after they left the store. The police found Thomas and his co-defendant in the getaway car, surrounded by game consoles and dividing up the cash from the robberies. The gun used in the robberies was also recovered.
During the trial, Thomas also attempted to intimidate a witness to prevent the witness from testifying at trial. As a result, the witness initially would not answer the prosecutor’s questions. After a short recess, the witness did testify. A Deputy U.S. Marshal, who heard the attempted intimidation, subsequently testified at the trial as to what the defendant said to the witness.
Thomas faces a maximum of 20 years in prison for each of the three counts of robbery. He also faces a maximum of life in prison and a minimum mandatory sentence of seven years in prison for the first count, and 25 years in prison for each of the two additional counts of brandishing a firearm in relation to a crime of violence, all consecutive to any other sentence imposed. Finally, Thomas faces a maximum of 10 years in prison for being a felon in possession of a firearm. U.S. District Judge Paula Xinis has scheduled sentencing for February 28, 2019, at 1:00 p.m.
Co-defendant Nathan Sergio Latimore, age 33, of Camp Springs, Maryland, previously pleaded guilty to five robberies, including the three he committed with Thomas. Judge Xinis has scheduled sentencing for Latimore on December 10, 2018, at 10:00 a.m.
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 U.S. Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the FBI Cross Border Task Force and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Timothy F. Hagan, Jr. and Elizabeth G. Wright, who are prosecuting the case.
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Federal Inmate Pleads to Weapon ChargeRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced today that a federal inmate pled guilty to a weapon charge. Colin Threadgill, 27, an inmate at the Federal Correctional Institution (FCI) at McDowell, pled guilty to possessing a handcrafted weapon known as a “shank” at the prison on August 10. A staff member at the prison observed Threadgill in possession of the weapon and recovered it from him. Threadgill faces up to five years in prison when he is sentenced on April 2, 2019.
“Another shank,” said United States Attorney Mike Stuart. “Another federal inmate must want to extend his stay at an FCI.”
The case was investigated by the Federal Bureau of Prisons. Assistant United States Attorney John File is handling the prosecution. United States Magistrate Judge Omar Aboulhosn presided at the plea hearing.
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Fayetteville Man Sentenced to over 7 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Leander Shepard, age 60, of Fayetteville, Arkansas was sentenced today to 87 months in federal prison followed by four years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, In early 2018, detectives with the 4th Judicial Drug Task Force (hereinafter “D.T.F.”) were contacted and advised of a person in California that was requesting an address in Fayetteville, Arkansas to ship a significant quantity of methamphetamine. On March 6, 2018, D.T.F. detectives located a known vacant residence in Fayetteville (hereinafter “the residence”). On March 8, 2018, the D.T.F. was informed that the California contact had sent a package containing drugs overnight via U.S. Mail to the residence with a projected delivery of 10:00am on March 9.
On March 9, 2018, D.T.F. detectives conducted surveillance of the residence. At approximately 10:00 am, a vehicle driven by Shepard arrived in front of the residence and parked nearby. At 10:40 am, a U.S. Mail postal carrier arrived in front of the residence and exited his vehicle with a package. Detectives observed Shepard approach the postal carrier in an attempt to retrieve the package. The postal carrier advised Shepard that he needed to place the package on the porch. Once on the porch, Shepard picked up the package and was confronted by D.T.F. detectives. The package was found to contain approximately one pound of methamphetamine and five pounds of marijuana.
The suspected methamphetamine was sent to the Arkansas State Crime Lab were it was tested and determined to contain actual methamphetamine.
A federal grand jury indicted Shepard in April 2018, and he pled guilty in August 2018.
This case was investigated by the 4th Judicial Drug Task Force. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
CONTACT: Charlie Robbins
PHONE: (479) 494-4086
TWITTER: @WDARnews
Eighteen “Bird Gang” Members and Associates Indicted for Drug Trafficking and Firearms Violations in Hillsborough CountyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the culmination of a long-term investigation of a violent and drug trafficking organization known as the “Bird Gang,” operating primarily in Tampa. As a result, 18 individuals have been charged with various federal firearms and drug offenses. (Please see chart for details). The indictments also notify the defendants that the United States intends to forfeit firearms, cash, and a vehicle, as well as any other property derived from or used in these offenses.
“The charges brought today are another example of our resolve to reduce violent crime in our communities,” said U.S. Attorney Maria Chapa Lopez. “Today’s actions reflect the continuous hard work of our Project Safe Neighborhoods Tampa Bay Task Force partners.”
“The arrests today send a clear message that violent gangs will not be tolerated in our communities. The FBI, with our federal, state, and local law enforcement partners will continue to work together to rid our communities of drugs and violence,” said Eric W. Sporre Special Agent in Charge of the FBI Tampa Field Office.
“Our city is safer today as a result of these arrests and it will continue to be safer in the future as a result of the partnership between our law enforcement agencies,’’ said Tampa Police Chief Brian Dugan. “This year-long operation sends a clear message that we and our partners will not rest until violent gangs are brought to justice.”
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This investigation arose out of a partnership between the United States Attorney’s Office, the Federal Bureau of Investigation, the Tampa Police Department, the Florida Department of Law Enforcement, and the Drug Enforcement Administration. The cases will be prosecuted by the Assistant United States Attorneys Natalie Hirt Adams and Taylor G. Stout.
These cases were brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This investigation is also the result of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
OPERATION BLUE CAST SUMMARY CHART
Name
(Age, Residence)
Charges
Maximum Penalties
Allen Brown
(39, Wimauma)
a/k/a “Jerusalem,”
a/k/a “Shawn,”
a/k/a “Deshon”
- Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine, crack cocaine, heroin, fentanyl, and oxycodone;
- Possessing a firearm and ammunition as a convicted felon.
- Maximum term of 40 years in federal prison;
- Minimum mandatory term of 15 years, and up to life in federal prison.
Edwin Carlon
(24, Ruskin)
Conspiring to manufacture, distribute, and possess with the intent to distribute crack cocaine, cocaine, heroin, fentanyl, and oxycodone.
Maximum term of 20 years in federal prison.
Jetavious Gaynor
(48, Tampa)
a/k/a “Cool,”
a/k/a “Breeze”
Conspiring to manufacture, distribute, and possess with the intent to distribute crack cocaine and 500 grams or more of cocaine.
Minimum mandatory term of 5 years, and up to 40 years in federal prison.
David Jerome Green, Jr.
(36, Tampa)
a/k/a “Woodrow”
Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine and crack cocaine.
Maximum term of 40 years in federal prison.
Malcolm Rontavis Griffin
(26, Tampa)
a/k/a “Chris”
- Distributing cocaine;
- Conspiring to distribute, and possess with the intent to distribute crack cocaine;
- Distributing crack cocaine.
Maximum term of 40 years in federal prison, per count.
Marvin Grooms
(33, Tampa)
- Conspiring to manufacture, distribute, and possess with the intent to distribute crack cocaine, cocaine, heroin, fentanyl, and oxycodone;
- Distributing heroin.
Maximum term of 40 years in prison, per count.
Cornelius Jones
(26, Tampa)
a/k/a “CJ”
Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine and 28 grams or more of crack cocaine.
Mandatory minimum term of 10 years, and up to life in federal prison.
Tyre Derel Jones
(25, Tampa)
a/k/a “Re-Dub,”
a/k/a “Fat Twin,”
a/k/a “Twerk”
- Conspiring to distribute, and possess with the intent to distribute crack cocaine;
- Distributing crack cocaine.
Maximum term of 40 years in prison, per count.
Lorenzo Knight
(32, Tampa)
a/k/a “Lo,”
a/k/a “Black”
Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine and crack cocaine.
Maximum term of 40 years in federal prison.
Jerrod Lee
(38, Tampa)
a/k/a “Jig,”
a/k/a “Mexico”
- Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine, crack cocaine, heroin, fentanyl, and oxycodone;
- Distributing heroin;
- Distributing 10 grams or more of fentanyl (two counts).
- Maximum term of 40 years in federal prison.
- Maximum term of 40 years in federal prison;
- Minimum mandatory term of 10 years, and up to life in federal prison, per count.
Sheldon Lillie
(36, Tampa)
a/k/a “Skeet,”
a/k/a “Boogie”
Conspiring to manufacture, distribute, and possess with the intent to distribute 28 grams or more of crack cocaine and 500 grams or more of cocaine.
Mandatory minimum term of life in federal prison.
Ariscio Morgan
(43, Tampa)
Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine and crack cocaine.
Maximum term of 40 years in federal prison.
Bernard Pendleton
(47, Tampa)
a/k/a “Nard”
Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine and crack cocaine.
Maximum term of 40 years in federal prison.
Deandre Perry
(37, Tampa)
a/k/a “Dee”
Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine and crack cocaine.
Maximum term of 40 years in federal prison.
Timmy Ramsey
(40, Brandon)
- Conspiring to manufacture, distribute, and possess with the intent to distribute crack cocaine, cocaine, heroin, fentanyl, and oxycodone;
- Possessing a firearm as a convicted felon.
- Maximum term of 40 years in federal prison;
- Maximum term of 10 years in federal prison.
Anthony Reed, Jr.
(40, Tampa)
a/k/a “Packy”
Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine and crack cocaine.
Maximum term of 40 years in federal prison.
Wandra Reynolds
(56, Tampa)
Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine and crack cocaine.
Maximum term of 20 years in federal prison.
James Haskell Stephens, IV
(42, Wesley Chapel)
a/k/a “Jamie”
- Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine, crack cocaine, heroin, fentanyl, and oxycodone;
- Possessing a firearm and ammunition as a convicted felon.
- Maximum term of 40 years in federal prison;
- Maximum term of 10 years in federal prison.
Des Moines Residents Sentenced for Felony Federal Food, Drug, and Cosmetic Act OffenseRead the Press Release
DES MOINES, IA – On Wednesday, November 28, 2018, United States District Court Judge Rebecca Goodgame Ebinger sentenced Des Moines residents, Scott William Twaddle, age 51, to 12 months and one day in prison, and Jana Marie Harmon Twaddle, age 52, to three years of probation with two months of home detention for Dispensing Prescription Drugs Without a Valid Prescription While Held for Sale, announced United States Attorney Marc Krickbaum. Scott Twaddle was ordered to serve one year of supervised release following his imprisonment and pay a $10,000 fine. Both defendants forfeited $200,000 in U.S. currency seized from their residence during the investigation and were ordered to pay $100 to the Crime Victims’ Fund.
According to the plea agreements entered on July 25, 2018, the Twaddles admitted that from about October 2014 to December 7, 2016, with the intent to defraud and mislead state and federal regulators, the Twaddles sold certain injectable Vitamin B12 prescription drugs to end users through websites, including www.medsupplystore.net. The Twaddles sold these prescription drugs, which were also “unapproved new drugs” without first obtaining prescriptions from the end user. Previously, in June 2014, the United States Food and Drug Administration (“FDA”) and the Iowa Board of Pharmacy conducted an on-site inspection of Medical Supply Liquidators LLC, a warehouse and distributor of prescription drugs including various assortments of injectable Vitamin B12, operated by the Twaddles in the Des Moines area. At that time, the Twaddles dispensed prescription drugs without any valid prescriptions to end users via www.medicalsupplyliquidators.com. In June 2014, the FDA inspection team specifically informed the Twaddles that their distribution of prescription drugs without first receiving proof of a prescription from the customer violated federal law.
“Illegally dispensing prescription drugs can put consumers’ health at risk,” said Charles L. Grinstead, Acting Special Agent in Charge, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to pursue and bring to justice those who jeopardize U.S. consumers’ health and safety.”
“It is our sincere desire that this prosecution and the resulting sentences will serve as a deterrent to anyone who may be tempted to violate this very important health and safety statute,” said United States Attorney Marc Krickbaum.
This matter was investigated by the U.S. Food and Drug Administration Office of Criminal Investigations, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Dermatology Associates of Central New York to Pay More than $811,000 for Submitting False Claims to Federal and State Health Care ProgramsRead the Press Release
ALBANY, NEW YORK – United States Attorney Grant C. Jaquith and New York State Attorney General Barbara D. Underwood announced today that Dermatology Associates of Central New York, PLLC (Dermatology Associates) will pay $811,196.88 to resolve allegations that it violated the federal and New York False Claims Acts by knowingly billing the federal and state governments for medical services at a higher rate than appropriate.
“The integrity and strength of our federal health care system depends on accurate and honest billing for services,” said United States Attorney Jaquith. “We will continue to use the False Claims Act to hold healthcare providers accountable when they submit inflated claims.”
Dermatology Associates is a medical practice based in Fayetteville, New York. The practice is owned and operated by a married couple, both of whom are medical doctors, and employs several non-physician practitioners (NPPs), such as physician assistants and nurse practitioners, who render care to Medicare, Medicaid, and TRICARE beneficiaries.
In certain circumstances, Medicare and TRICARE allow practices to bill for services furnished by an NPP “incident to” the services that are rendered by a physician. These services, even though not personally rendered by a physician, may be billed in a physician’s name if several requirements are met. One such requirement is that a physician directly supervise the NPP rendering the services, meaning that a physician is present in the office suite and immediately available to furnish assistance and direction throughout the procedure. Although Medicare and TRICARE will reimburse practices for certain procedures rendered by NPPs without a physician’s direct supervision, such services are reimbursed at a lesser rate than service rendered or directly supervised by a physician.
The New York State Medicaid Program (Medicaid) does not allow for incident-to billing. In order for an NPP to receive reimbursement for services provided to a Medicaid eligible client, an NPP is required to be enrolled as a Medicaid provider with the New York State Department of Health.
From March 2009 through February 2015, Dermatology Associates generally operated six days a week for several hours each day, but a physician was physically present in the office suite on a more limited basis. Dermatology Associates caused its billing company to submit thousands of claims for payment to Medicare, Medicaid, and TRICARE for services that were rendered by NPPs but improperly identified one of Dermatology Associates’ physician owners as the rendering or supervising provider on days when no physician was in the office. Dermatology Associates, which cooperated during the investigation, admitted that the practice caused its billing company to submit claims for services rendered by NPPs as though such services had been provided or supervised by a physician on more than 200 days that the physicians were traveling outside of New York State. Dermatology Associates further acknowledged that some of the NPPs who treated Medicaid clients during this period were not credentialed to do so in New York and, in such circumstances, the uncredentialed providers were billed in a physician’s name.
“The irresponsible behavior by Dermatology Associates compromised the integrity of the Medicare, Medicaid, and TRICARE programs, and wasted taxpayer dollars,” said Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (HHS-OIG). “Along with our law enforcement partners, HHS-OIG will continue to ensure that providers that do business with federally funded health care programs do so in an honest fashion.”
“The civil settlement announced today is the direct result of a joint investigative effort,” stated Leigh-Alistair Barzey, Special Agent-in-Charge of the Defense Criminal Investigative Service (DCIS) Northeast Field Office. “DCIS will continue to work with the U.S. Attorney’s Office for the Northern District of New York, HHS-OIG, the New York State Attorney General’s Office and its other law enforcement partners, to ensure that TRICARE, the Defense Department’s healthcare system for military members, retirees and their dependents, is protected.”
This investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the federal and New York False Claims Acts, which allow private persons, known as “relators,” to file civil actions on behalf of the government and share in any recovery. The relator in this case will receive $138,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 5:15-cv-315.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the New York State Attorney General’s Office, HHS-OIG, and DCIS. The United States was represented by Assistant U.S. Attorney Adam J. Katz and New York State was represented by Special Assistant Attorney General Paul R. Berry.
Del Rio Woman Sentenced to Federal Prison for Attempting to Smuggle Heroin and Methamphetamine into the United StatesRead the Press Release
In Del Rio today, U.S. District Judge Alia Moses sentenced 41–year–old Ana Dellanira Rodarte to 17 years in federal prison for attempting to smuggle over 1.3 kilograms of heroin and 7.5 kilograms of methamphetamine into the country, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
In addition to the prison term, Judge Moses ordered that Rodarte pay a $2,000 fine and be placed on supervised release for a period of five years after completing her prison term.
On April 23, 2018, Rodarte pleaded guilty to one count of conspiracy to import heroin. By pleading guilty, Rodarte admitted that she arranged for the load of narcotics inside her own car to be driven across the U.S. border with Mexico.
On March 5, 2016, inspectors at the Del Rio Port of Entry discovered the methamphetamine inside the vehicle’s battery. They also located the heroin in two antifreeze containers inside the vehicle. The driver of Rodarte’s vehicle at the time, Jasmin Medina Ramos of Del Rio, pleaded guilty to conspiracy to import methamphetamine. Last year, Judge Moses sentenced her to 135 months in federal prison ordered her to pay a $1,500 fine. A third defendant charged in this case, Jose Carlos Trevino of Del Rio, was sentenced to 121 months in federal prison and fined $3,000 last year after pleading guilty to conspiracy to possess with intent to distribute methamphetamine.
HSI Del Rio conducted this investigation. Assistant U.S. Attorney Todd R. Keagle prosecuted this case on behalf of the Government.
Dalton Man Charged with Mail FraudRead the Press Release
United States Attorney Erica H. MacDonald today announced a criminal complaint charging JEROME ROBERT HENNESSEY, 56, with one count of mail fraud. HENNESSEY surrendered himself and made his initial appearance today before Magistrate Judge Katherine Menendez, in U.S. District Court in Minneapolis, Minnesota.
According to the criminal complaint and a law enforcement affidavit, from 2003 through at least September of 2018, HENNESSEY defrauded the Ashby Farmers’ Co-Operative Elevator Company (co-op) in Ashby, Minnesota, for his own expenses.
According to the affidavit, on September 12, 2018, the co-op contacted local law enforcement regarding concerns over payments that HENNESSEY made to himself or for his own personal expenses. HENNESSEY was serving as the co-ops’ general manager. The co-op discovered multiple checks written by HENNESSEY to himself for over $40,000 and including a check for $135,000.
According to the affidavit, among the payments in question included over $1 million in payments to HENNESSEY’s personal Cabela’s Visa Card and hundreds of thousands of dollars for various hunting trips, including international big game hunting safaris, and taxidermy services. For example, investigators found at least twelve checks totaling more than $400,000 for items such as “South Africa Mounts” and “Zimbabwe Double Kudu Pedestals” and for a “Zebra Pedestal.”
The criminal complaint and law enforcement affidavit allege that on January 27, 2017, HENNESSEY mailed a check via U.S. mail in the amount of $34,166.67 from the co-ops’ account for a partial payment toward the purchase of hunting property in Kanabec County.
According to the affidavit, after the co-op identified the suspicious payments, they requested HENNESSEY meet with them on the morning of September 10, 2018. HENNESSEY did not show up for the meeting and instead met a friend who ultimately drove HENNESSEY to Des Moines, Iowa. Two of HENNESSEY’s acquaintances who were interviewed by law enforcement indicated that HENNESSEY told them that he taken money from his employer and was in a lot of trouble.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigation Division, the Grant County Sheriff’s Office, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney John Kokkinen is prosecuting the case.
Defendant Information:
JEROME ROBERT HENNESSEY, 56
Dalton, Minnesota
Charged:
- Mail Fraud, 1 count
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The charges contained in the criminal complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
DEA Special Agent Arrested on Bribery and Drug Conspiracy ChargesRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced today’s arrest of Nathan Koen, 42, of Conway, on federal bribery and drug conspiracy charges.
Koen, who had worked in the Drug Enforcement Administration’s Little Rock Field Office as a group supervisor since September 2016, was arrested on a federal complaint charging him with accepting bribes in connection with his duties, and for being part of a conspiracy to distribute controlled substances. Koen appeared before United States Magistrate Judge Beth Deere Tuesday afternoon and was detained following his initial appearance.
According to the federal complaint charging him, Koen accepted multiple cash payments from a known drug dealer from 2016 to 2018, in exchange for providing information which assisted the drug dealer’s criminal activities.
The bribery crime with which Koen is charged is punishable by up to 15 years’ imprisonment, while the drug distribution charge is punishable by up to life in prison. Assistant United States Attorneys Benecia Moore and Chris Givens are prosecuting the case, which is being investigated by the FBI.
A complaint contains only allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edar
Twitter: @EDARNEWSCourt Sentences Selma Man to 70 Months in Federal Prison for Being a Felon in Possession of a FirearmRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Chief Judge Kristi K. DuBose sentenced Anthony Rashad Brown on November 30, 2018 to serve a term of imprisonment of 70 months followed by 3 years of supervised release for the for the illegal possession of a firearm in violation of 18 USC § 922(g)(1). The defendant’s guilty plea was accepted by the Court on July 30, 2018.
Evidence elicited through testimony in Court revealed that on October 3, 2017, detectives with the Selma Police Department stopped the defendant for a traffic infraction. After smelling marijuana in the vehicle officers searched the vehicle and found a loaded .40-caliber, Ruger, P94 firearm from under the driver side seat. The firearm was determined to be stolen. Officers also found approximately 70 pills, that appeared to be Ecstasy but tested at the Alabama Department of Forensic Sciences as methamphetamine, and approximately 15 grams of marijuana, in the center console of the vehicle. The defendant was on federal probation for the felony offense of Possession with the Intent to Distribute Marijuana in the United States District Court for the Southern District of Alabama. The prior federal conviction occurred on May 20, 2014.The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Selma Police Department. The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDEFT) Lead Attorney, Assistant United States Attorney George F. May and Assistant United States Attorney Lawrence J. Bullard for the United States Attorney’s Office for the Southern District of Alabama.
Court Sentences Mobile County Man to 48 Months in Federal Prison for Weapons and Drug OffenseRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Chief Judge Kristi K. DuBose sentenced John Robert Payne on November 30, 2018 to serve a term of imprisonment of 48 months followed by 3 years of supervised release for violating Title 21, United States Code, Section 841(a)(1), Possession with the Intent to Distribute a Controlled Substance, Methamphetamine, and violating Title 18, United States Code, Section 924 (c), Possession of a Firearm in Furtherance of a Drug Trafficking Crime. The defendant’s guilty plea was accepted by the Court on July 30, 2018.
Facts established through Court records revealed that on July 17, 2017, a reliable confidential informant (CI) working for the Mobile County Street Enforcement Narcotics Team (MCSENT) reported that Payne was offering to sell him methamphetamine. Officers set up a “buy/bust” undercover operation and detained the defendant when he showed up at the location designated as the buy location at a Burger King parking lot in Mobile County. After being detained at the location the defendant admitted he was a methamphetamine seller and that he had methamphetamine in his pocket to sell to the CI. The defendant was planning to sell the CI approximately 3 grams of methamphetamine (actual). The defendant also had a firearm in the center console of the vehicle that the defendant bought off the streets to protect his drug trade. Four days later in a completely separate investigation, a Federal Bureau of Investigation CI made an undercover buy of .5 grams of methamphetamine from Payne.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Federal Bureau of Investigation, the Mobile County Street Enforcement Narcotics Team (MCSENT) and the City of Saraland Police Department. The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDEFT) Lead Attorney, Assistant United States Attorney George F. May and Assistant United States Attorney Lawrence J. Bullard for the United States Attorney’s Office for the Southern District of Alabama.Colombian National Sentenced to 15 Years in Prison for Participating in Human Smuggling Event that Resulted in the Rape and Murder of Cuban NationalsRead the Press Release
A Colombian national was sentenced to 180 months in prison for his role in a scheme to smuggle illegal aliens from Colombia into the United States, which resulted in the rape of one and the death of two Cuban nationals.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Fredis Valencia Palacios, 30, a Colombian national extradited to the United States in April 2018 to face these charges, previously pleaded guilty to one count of conspiracy to encourage and induce aliens to come to the Unites States resulting in death as well as three counts of encouraging and inducing aliens to come to the United States resulting in death and placing in jeopardy the lives of any person. Valencia Palacios was sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida, who also ordered him to serve three years of supervised release following his prison sentence.
“When Valencia Palacios conspired to smuggle illegal aliens into the United States, he launched them on a deadly journey during which one was sexually assaulted and murdered, another also was brutally murdered, and a third was left for dead in the water,” said Assistant Attorney General Benczkowski. “Today’s sentence once again demonstrates the Department of Justice’s commitment to hold accountable those who violate U.S. immigration laws.”
“The 15-year federal prison sentence imposed today against Fredis Valencia Palacios is a reminder to all that the high seas do not protect criminals from prosecution in the United States,” said U.S. Attorney Fajardo Orshan. “When human smugglers knowingly plan to violate U.S. immigration laws and expose illegal aliens to grave danger during their arduous journey, the U.S. Attorney’s Office, with the assistance of our domestic and foreign law enforcement partners, stand ready to prosecute the offenders on American soil.”
“This case highlights the tragic perils involved with illegal alien smuggling,” said HSI Miami Special Agent in Charge Mark Selby. “While exploiting human cargo for pure greed, this was a horrific tragedy resulting in sexual assault and two deaths. HSI continues to aggressively target and dismantle transnational criminal organizations that profit from the suffering of individuals.”
According to the court record, including agreed-upon factual proffers, since 2014, Valencia Palacios, and his co-defendants, including Jhoan Stiven Carreazo Asprilla and Carlos Emilio Ibarguen Palacios, organized and arranged the unlawful smuggling of illegal aliens, transporting them across Colombia toward the Panamanian border, en route to the United States. In 2016, three Cuban nationals arranged with, and paid, the defendants to transport them from Colombia to Panama, as they traveled to the United States, intending to arrive in Miami.
On Sep. 7, 2016, during a portion of their journey, the three victims – two men and a woman – were delivered by Valencia Palacios to a boat captained by his co-defendants to begin their journey to Panama. During the boat trip, the co-defendants pulled a knife and a gun on the victims. One of the co-defendants tied the wrists of the two male passengers and then threw them overboard, anchoring them with rope to the inside of the boat. The surviving male victim reported that he heard the co-defendants sexually assault the female victim before cutting her throat and murdering her. The surviving victim also heard the co-defendants cut the other male victim’s throat, killing him. While that was happening, the survivor managed to free himself and escape by swimming away. The co-defendants left him for dead.
The next day, a local fisherman discovered the survivor, who was subsequently rescued by the Colombian Navy. The survivor directed the Colombian authorities to the place where the murders happened, and the Colombian authorities retrieved the bodies. Their throats and bellies had been cut open and they were tied up together and submerged in the water. The co-defendants were subsequently located and arrested.
Carreazo Asprilla and Ibarguen Palacios are scheduled to be sentenced on Jan. 4, 2019 before U.S. District Judge Martinez.
This case was investigated by HSI Miami, with assistance from the HSI Bogota field office. The Government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation. The Criminal Division’s Office of International Affairs provided significant support with the defendants’ extradition. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida prosecuted the case.
Colombian National Sentenced to 15 Years in Prison for Participating in Human Smuggling Event that Resulted in the Rape and Murder of Cuban NationalsRead the Press Release
A Colombian national was sentenced to 180 months in prison for his role in a scheme to smuggle illegal aliens from Colombia into the United States, which resulted in the rape of one and the death of two Cuban nationals.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Fredis Valencia Palacios, 30, a Colombian national extradited to the United States in April 2018 to face these charges, previously pleaded guilty to one count of conspiracy to encourage and induce aliens to come to the Unites States resulting in death as well as three counts of encouraging and inducing aliens to come to the United States resulting in death and placing in jeopardy the lives of any person. Valencia Palacios was sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida, who also ordered him to serve three years of supervised release following his prison sentence.
“The 15-year federal prison sentence imposed today against Fredis Valencia Palacios is a reminder to all that the high seas do not protect criminals from prosecution in the United States,” said U.S. Attorney Fajardo Orshan. “When human smugglers knowingly plan to violate U.S. immigration laws and expose illegal aliens to grave danger during their arduous journey, the U.S. Attorney’s Office, with the assistance of our domestic and foreign law enforcement partners, stand ready to prosecute the offenders on American soil.”
“When Valencia Palacios conspired to smuggle illegal aliens into the United States, he launched them on a deadly journey during which one was sexually assaulted and murdered, another also was brutally murdered, and a third was left for dead in the water,” said Assistant Attorney General Benczkowski. “Today’s sentence once again demonstrates the Department of Justice’s commitment to hold accountable those who violate U.S. immigration laws.”
“This case highlights the tragic perils involved with illegal alien smuggling,” said HSI Miami Special Agent in Charge Mark Selby. “While exploiting human cargo for pure greed, this was a horrific tragedy resulting in sexual assault and two deaths. HSI continues to aggressively target and dismantle transnational criminal organizations that profit from the suffering of individuals.”
According to the court record, including agreed-upon factual proffers, since 2014, Valencia Palacios, and his co-defendants, including Jhoan Stiven Carreazo Asprilla and Carlos Emilio Ibarguen Palacios, organized and arranged the unlawful smuggling of illegal aliens, transporting them across Colombia toward the Panamanian border, en route to the United States. In 2016, three Cuban nationals arranged with, and paid, the defendants to transport them from Colombia to Panama, as they traveled to the United States, intending to arrive in Miami.
On Sep. 7, 2016, during a portion of their journey, the three victims – two men and a woman – were delivered by Valencia Palacios to a boat captained by his co-defendants to begin their journey to Panama. During the boat trip, the co-defendants pulled a knife and a gun on the victims. One of the co-defendants tied the wrists of the two male passengers and then threw them overboard, anchoring them with rope to the inside of the boat. The surviving male victim reported that he heard the co-defendants sexually assault the female victim before cutting her throat and murdering her. The surviving victim also heard the co-defendants cut the other male victim’s throat, killing him. While that was happening, the survivor managed to free himself and escape by swimming away. The co-defendants left him for dead.
The next day, a local fisherman discovered the survivor, who was subsequently rescued by the Colombian Navy. The survivor directed the Colombian authorities to the place where the murders happened, and the Colombian authorities retrieved the bodies. Their throats and bellies had been cut open and they were tied up together and submerged in the water. The co-defendants were subsequently located and arrested.
Carreazo Asprilla and Ibarguen Palacios are scheduled to be sentenced on Jan. 4, 2019 before U.S. District Judge Martinez.
This case was investigated by HSI Miami, with assistance from the HSI Bogota field office. The Government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation. The Criminal Division’s Office of International Affairs provided significant support with the defendants’ extradition. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida and Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Cheyenne Psychologist and His Wife Sentenced to 37 Months in Prison for Health Care FraudRead the Press Release
John Robert Sink, Jr., 68, and Diane Marie Sink, 63, of Cheyenne, Wyoming, were sentenced on December 3, 2018, to serve 37 months in prison for making false statements as part of a scheme to fraudulently bill Wyoming Medicaid for mental health services, which were never provided, announced United States Attorney Mark A. Klaassen. The Sinks, who are married, were also ordered to pay over $6.2 million in restitution to the Wyoming Department of Health and the United States Department of Health and Human Services, and to forfeit over $750,000 in assets traceable to the fraud, including cash, retirement accounts, vehicles, and a residence.
The Sinks were indicted in March 2018 by a federal grand jury for health care fraud, making false statements, and money laundering. At all times relevant to the indictment, John and Diane Sink operated a psychological practice in Cheyenne. John Sink, who was a licensed Ph.D. psychologist, directed mental health services. Diane Sink submitted bills to Wyoming Medicaid and managed the business and its employees. The Sinks provided services to developmentally disabled Medicaid beneficiaries and billed Medicaid for those services.
Between February 2012 and December 2016, the Sinks submitted bills to Wyoming Medicaid for $6.2 million in alleged group therapy. These bills were false and fraudulent because the services provided did not qualify as group therapy as defined by Wyoming Medicaid. The Sinks also falsely billed Medicaid for beneficiaries who were not participating in any activities, and therefore did not receive any of the claimed mental health services. When Wyoming Medicaid audited the Sinks in May 2016, the Sinks did not have necessary documentation to support their billing, so they ordered an employee to create backdated treatment plans. The Sinks then submitted these phony treatment plans to Wyoming Medicaid to justify the Sinks’ false group therapy bills, and to cover up their fraudulent billing scheme.
The Sinks each pled guilty to one count of making false statements in relation to health care as part of a plea agreement with the United States government. The other counts in the indictment were dismissed.
"Healthcare fraud is a serious crime that increases costs and wastes healthcare dollars on medically worthless or unnecessary activities. Fraud involving a government healthcare program, like Wyoming Medicaid, is even more serious because it wastes taxpayer dollars and reduces the program’s ability to serve needy individuals and families. We are on the lookout for this type of criminal activity, and it will not be tolerated," said U.S. Attorney Mark Klaassen.
"John and Diane Sink took advantage of the government's Medicaid program by creating a deceptive health care billing schemes for personal gain, consequently passing the bill to the U.S. government and the State of Wyoming," said FBI Denver Special Agent in Charge Dean Phillips. "All taxpayers and those who need Medicaid health care assistance were victimized. Today's sentencing should send the message that exploitation of our health care assistance programs for personal gain will not be tolerated and that we will continue to hold accountable those individuals who engage in health care fraud."
"Wyoming Medicaid staff, together with our partners in the Attorney General’s office, work to be good stewards of public funds," said Teri Green, Senior Administrator and Wyoming State Medicaid Agent. "Outcomes such as with this case should serve as a reminder that we take our responsibilities to serve Wyoming’s citizens seriously."
"This prosecution represents a successful partnership between state and federal law enforcement agencies to combat fraud," said Travis Kirchhefer, Director, Wyoming Attorney General's Office, Medicaid Fraud Control Unit.
United States District Court Judge Nancy Freudenthal imposed the sentence. The Federal Bureau of Investigation and the Wyoming Medicaid Fraud Control Unit investigated this case. Assistant U.S. Attorney Eric Heimann and Special Assistant United States Attorney Travis Kirchhefer of the Wyoming Medicaid Fraud Control Unit prosecuted the case.
Suspected fraud against Medicaid or Medicare can be reported to the U.S. Department of Health and Human Services’ Office of Inspector General at 1-800-HHS-TIPS (1-800-447-8477) and the agency’s website https://oig.hhs.gov/fraud/report-fraud/. Wyoming residents can call the Wyoming Medicaid Fraud Control Unit toll free at 1-800-378-0345, or visit their website at http://ag.wyo.gov/medicaid-fraud-control-unit.
California Telescope Enthusiast Sentenced to Prison for Cyber AttackRead the Press Release
OKLAHOMA CITY – DAVID CHESLEY GOODYEAR, 44, of El Segundo, California, has been sentenced to 26 months in prison for directing distributed-denial-of-service (DDoS) cyber attacks against two websites owned by Oklahoma telescope retailer Astronomics in August 2016, announced Robert J. Troester of the U.S. Attorney’s Office.
In August 2017, a federal grand jury charged Goodyear with attacking the websites of Astronomics, a family-owned telescope retailer in Norman, Oklahoma. He instigated a DDoS cyber attack, in which the perpetrator floods the victim’s computer with useless information from botnets—large clusters of connected devices infected with malware and controlled remotely—and prevents access by legitimate users.
On February 15, 2018, after two days of trial, a jury returned a guilty verdict. The evidence showed that Astronomics operated the world’s largest free astronomy forum on the internet, called Cloudy Nights, and that Goodyear had been a registered user on the site under a variety of aliases. Each of Goodyear’s usernames and his primary IP address had been banned for violating the terms of service of Cloudy Nights, including sending threats to other users, administrators, and moderators.
The jury heard that Goodyear attempted to access Cloudy Nights as "JamesSober" on August 13, 2016, but his access to the online community was denied because his "JamesSober" account had been banned on August 9, 2016. Goodyear then posted messages on Cloudy Nights under a new alias, "HawaiiAPUser," including pornography and profanity directed at Astronomics and the volunteer administrators and moderators of Cloudy Nights. In the posts, he threatened that he would "talk with [his] contacts and just DOS this site as well as A55tronomics." Evidence further showed that DDoS attacks against Astronomics and Cloudy Nights began that night and continued intermittently until the end of August 2016, when law enforcement interviewed Goodyear, who admitted he was responsible for the attacks.
On December 3, 2018, Chief U.S. District Judge Joe Heaton sentenced Goodyear to 26 months in the federal Bureau of Prisons, followed by three years of supervised release. He was ordered to pay $27,352.51 in restitution to Astronomics, which represents lost profits and mitigation costs. The court also fined him $2,500.00. Judge Heaton explained the punishment by pointing out Goodyear’s clear intent to harm Astronomics and the importance of deterring sophisticated cybercrimes, which are difficult to trace and therefore particularly important to punish and thereby send the appropriate message to others.
This sentence is the result of an investigation by the FBI, with support from the United States Secret Service Electronic Crimes Task Force in Los Angeles, which includes personnel from the Los Angeles Police Department. The case was prosecuted by Assistant U.S. Attorneys K. McKenzie Anderson and William E. Farrior.
Reference is made to public filings for further information.
California Man Charged with Sexual Exploitation of a ChildRead the Press Release
David Vogelpohl, age 21, of Vista, California, has been charged with sexual exploitation of a child. The charge is contained in an Indictment unsealed on December 3, 2018, in United States District Court in Cedar Rapids.
The Indictment alleges that, between about August 2018 and October 2018, Vogelpohl persuaded, induced, and enticed a minor under 18 years old to engage in sexually explicit conduct for the purpose of producing visual depictions.
If convicted, Vogelpohl faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 30 years’ imprisonment, a $250,000 fine, and at least five years and up to life on supervised release following any imprisonment.
Vogelpohl appeared on December 3, 2018, in federal court in Cedar Rapids and was held without bond. Vogelpohl’s next appearance for trial is set for February 4, 2019.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Iowa Division of Criminal Investigation, the Mason City Police Department, the North Platte, Nebraska, Police Department, and Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 18-3053.
Follow us on Twitter @USAO_NDIA.
Brooklyn Woman Sentenced for Identity Theft and Fraud Conspiracy ChargesRead the Press Release
CONCORD - Armelle Chester, 26, of Brooklyn, New York, was sentenced in federal court on Friday to serve to two years in federal prison for conspiracy to commit mail and wire fraud and aggravated identity theft, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in January 2018, in Nashua, New Hampshire, Chester conspired with co-defendants Everton Ellis and Jeffrey Martin (both of whom have entered guilty pleas) to use stolen identities to defraud the Sprint Corporation. Members of the conspiracy contacted Sprint to establish new accounts in the stolen names, causing Sprint to ship thousands of dollars’ worth of iPads and iPhones on credit. The defendants then intercepting the goods in New Hampshire. As part of the scheme, the defendants obtained and possessed without authority the names and other personal identifiers of nearly 200 residents or former residents of New Hampshire.
Chester previously pleaded guilty on July 16, 2018. In addition to the prison sentenced, Chester was ordered to pay $123,939.09 in restitution.
“Identity theft is a crime that causes real financial damage to its victims,” said U.S. Attorney Murray. “I am grateful to the law enforcement officers whose hard work stopped this scheme and prevented further losses.”
“The United States Secret Service is committed to investigating financial crimes including the unauthorized use of personally identifiable information (PII) for financial gain,” said Timothy Benitez, Resident Agent in Charge of the U.S. Secret Service, Manchester Resident Office. “The success of this investigation is a result of the cooperation between federal and local law enforcement partners.”
“The U.S. Postal Inspection Service is committed to preserving the integrity of the U.S. Mail. We will continue to conduct investigations that seek prosecution of those who fraudulently use the U.S. Mail by working with our federal and local law enforcement partners.” U.S. Postal Inspection Service’s Inspector in Charge, Joseph W. Cronin of the Boston Division.
This matter was investigated by the U.S. Secret Service, the U.S. Postal Inspection Service, and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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Bridgeport Man Sentenced to 7 Years in Prison for Third Federal Gun ConvictionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that FEDERICO CANNON, also known as “Rico,” 36, of Bridgeport, was sentenced today by U.S District Judge Stefan R. Underhill in Bridgeport to 84 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm, and for violating the conditions of his supervised release from a previous federal conviction.
According to court documents and statements made in court, on June 26, 2017, Cannon was released from federal prison after serving a 70-month sentence for possession of a firearm by a convicted felon. On July 31, 2017, while Cannon was on federal supervised release, Bridgeport Police received information that Cannon had a gun and was riding in a car in the area of the Trumbull Gardens housing complex in Bridgeport. Officers located and stopped the vehicle. After Cannon was removed from the car, officers located a 9mm semi-automatic SAR B6P handgun from the floor below the passenger seat where Cannon had been sitting. The gun was loaded with 16 rounds of ammunition.
Cannon has been detained since his arrest on July 31, 2017. On July 9, 2018, he pleaded guilty to one count of possession of a firearm by a convicted felon.
Judge Underhill sentenced Cannon to 60 months of imprisonment for the firearm offense, and a consecutive 24 months of imprisonment for violating the conditions of his supervised release.
This is Cannon’s third federal conviction for possession of a firearm by a convicted felon.
In the early morning hours of October 21, 2004, Cannon was in a car with three other individuals driving northbound on Interstate 95 between Norwalk and Bridgeport when they initiated a confrontation with another car occupied by two men. The confrontation culminated at the bottom of the Exit 25 ramp in Bridgeport when approximately seven or eight shots were fired at the victims’ vehicle. A subsequent search of the vehicle in which Cannon was a passenger revealed a semi-automatic pistol at Cannon’s feet in the right rear passenger seat of the vehicle. A jury in New Haven found Cannon guilty and, on April 12, 2006, he was sentenced to 42 months of imprisonment.
In the early morning hours of February 25, 2012, Bridgeport Police stopped a vehicle in which Cannon was a passenger on Caroline Street in Bridgeport. Cannon initially exited the vehicle and attempted to walk away, but police ordered him back into the car. After directing the driver out of the vehicle, a Bridgeport Police detective observed a 9mm semi-automatic pistol on the floor of the rear passenger area near where Cannon was sitting. The firearm was loaded with 10 live hollow-point cartridges and two full-metal jacket cartridges. A jury in Hartford found Cannon guilty and, on July 11, 2014, he was sentenced to 70 months of imprisonment, followed by three years of supervised release.
Cannon also has a state conviction stemming from a car stop by Bridgeport Police on June 6, 1999. On that date, officers located a .25 caliber semi-automatic handgun concealed under the right front passenger seat where Cannon had been sitting.
This matter was investigated by the Bridgeport Police Department’s Tactical Narcotics Team and the Federal Bureau of Investigation, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
This prosecution 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 neighborhoods safer for everyone.
Bradenton Man Sentenced to More Than 10 Years in Federal Prison for Downloading Child Pornography from the InternetRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington has sentenced Adam Daniel Young (27, Bradenton) to 10 years and 1 month in federal prison for using the internet to download images and videos depicting child sexual abuse. Young was also sentenced to a lifetime of supervised release and was ordered to register as a sex offender.
Young had pleaded guilty on August 21, 2018.
According to court documents, the FBI began an investigation of Young after an undercover agent downloaded child pornography from Young’s Internet Protocol (IP) address. Law enforcement officers executed a search warrant at Young’s home and found more than 3,500 images and 75 videos depicting child sexual abuse on Young’s laptop computer.
This case was investigated by the FBI and the Charlotte County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Berkeley County man sentenced to more than 8 years for child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Christopher Lee Myers, of Bunker Hill, West Virginia, was sentenced Monday to 97 months incarceration for possessing child pornography, United States Attorney Bill Powell announced.
Myers, age 36, pled guilty to one count of “Possession of Child Pornography” in August 2018. Myers admitted to having child pornography on his computer in October 2017.
Myers will be on supervised release for 30 years after he completes his supervision.
This case was 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/.
Assistant U.S. Attorney Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Shawn D. Schell, of Hedgesville, West Virginia, was sentenced Monday to 21 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Schell, also known as “Shaun D. Schell,” age 37, pled guilty to one count of “Unlawful Possession of a Firearm” in August 2018. Schell, having previously been convicted of three felonies, admitted to having a .22 caliber rifle in November 2017 in Berkeley County.
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 Attorney General’s Office has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Attorney General’s Office announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Armed Cocaine Dealer Is Sentenced to More Than 10 Years on Drug and Gun ChargesRead the Press Release
STATESVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Ashonta Eswaien Hammond, 41, of Hickory, N.C., was sentenced to 120 months in prison on drug and gun charges. U.S. District Judge Richard L. Voorhees also ordered Hammond to serve four years under court supervision, upon completion of his prison term. Hammond previously pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine; possession with intent to distribute cocaine; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a felon.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Thurman Whisnant of the Hickory Police Department join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s plea hearing, from December 2016 to May 2018, while investigating a drug conspiracy operating in and around Hickory, N.C., law enforcement identified Hammond as a cocaine and crack cocaine dealer in the area. Court records show that over the course of the investigation, Hammond engaged in multiple drug sales, while knowingly and unlawfully possessing a firearm. Hammond’s criminal history dates back more than two decades, and includes a federal drug conspiracy conviction, for which he was sentenced to 72 months in prison, and state convictions for larceny, assault on a female, domestic violence, and multiple traffic violations, among others.
Hammond is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the DEA and the Hickory Police Department for their investigation of the case.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Assistant U.S. Attorney Sanjeev Bhasker, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
America's Highest per Capita Murder Rate Down 42% Through Project Safe NeighborhoodsRead the Press Release
FAIRVIEW HEIGHTS, ILL. – Today marks the one-year anniversary of the local implementation of Project Safe Neighborhoods (PSN) in East St. Louis, Illinois. The centerpiece of the Department of Justice’s violent crime strategy, PSN is a nationwide initiative that brings together federal, state, and local law enforcement officials, along with community leaders, to identify the most pressing violent crime problems and to develop comprehensive solutions to address them.
On December 4, 2018, the United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, held a press conference in conjunction with St. Clair County State’s Attorney Brendan Kelly, Illinois State Police Director Leo Schmitz, East St. Louis Police Chief Jerry Simon, and United States Marshal Brad Maxwell, along with representatives from the Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Drug Enforcement Administration (DEA).
US Attorney Weinhoeft said, "One year ago, the city of East St. Louis experienced the highest per capita murder rate in America, for the third straight year. Today, on the one-year anniversary of the local implementation of the Project Safe Neighborhoods strategy, I’m happy to report that the homicide rate has been cut by 42%. There is still much to do. But, today, we can be very proud of the progress that has been made."
PSN is built on three foundational principles. First, it is community based. The initiative recognizes that different communities have different dynamics. As such, each US Attorney is tasked with tailoring a strategy that makes sense for that particular district. Second, PSN is a targeted program that uses law enforcement and community resources to identify the most violent offenders for criminal enforcement. This second principle recognizes that the majority of violent crimes are perpetrated by a small number of persistent violent offenders. Third, the program is comprehensive. It seeks to sustain relationships between local, state, and federal law enforcement,
together with community groups, and with a focus on prevention and reentry strategies to disrupt the cycle of violence.
The US Attorney’s primary local PSN strategy has focused on leading bi-weekly case reviews at the East St. Louis police department with the law enforcement personnel who directly investigate violent crime cases. At those meetings, state, local, and federal law enforcement officials review every shooting incident and prioritize resources to focus on cases against the most persistent, repeat, violent offenders. State and federal prosecutors participate in the case reviews to help guide the investigations.
The Illinois State Police has supported law enforcement efforts for decades in the East St. Louis and Metro East areas. Over the past year, however, they have significantly increased their commitment by supporting the PSN initiative. The Illinois State Police has committed additional manpower to conduct proactive patrols, and they send crime scene investigators to process any scene involving a gun crime, whether or not the crime results in a fatality. This is a significant commitment considering East St. Louis receives roughly 1,300 calls each year for shots fired.
St. Clair County State’s Attorney Brendan Kelly said, "This is the kind of effort, with all the key agencies, consistently involved, that must be sustained over the long term if we are going to continue to move in the right direction. Law enforcement helps set the table for economic development by other parts of the community."
East St. Louis Police Chief Jerry Simon said, "I appreciate the support of the US Attorney’s Office and the St. Clair County State’s Attorney’s Office, as well as the support of each of the law enforcement agencies. This work is directly responsible for the decrease in the overall crime rate and for the significant reduction in the homicide rate. I look forward to continuing these relationships in the future."
US Attorney Weinhoeft said, "The challenges we face are great, but our resolve to meet those challenges is greater. One neighborhood at a time, and one shooter at a time, we are making the community safer. Today, that impact is most dramatically demonstrated by the 42% reduction in the homicide rate."
3 December 2018
‘Darknet’ Drug Dealer Sentenced to Five Years in PrisonRead the Press Release
A 38-year-old Tacoma, Washington man was sentenced today in U.S. District Court in Tacoma to five years in prison for conspiracy to distribute controlled substances, announced U.S. Attorney Annette L. Hayes. ALLEN D. LINT sold drugs via the so-called Dream Market Darknet marketplace between May 2016 and September 2017. When law enforcement served a search warrant at LINT’s residence they found more than 3600 doses of LSD as well as a variety of materials used to process Darknet orders from around the country. At the sentencing hearing U.S. District Judge Benjamin H. Settle imposed five years of supervised release to follow the prison term.
“This defendant was a 21st century drug dealer,” said U.S. Attorney Annette L. Hayes. “From the anonymity of the dark web, he filled more than 1700 drug orders for customers who paid with cryptocurrency. Despite his special encryption software and other efforts to hide his criminal conduct, law enforcement was able to unmask his identity and hold him to account.”
According to records filed in the case, LINT was identified by law enforcement after his address was uncovered in multiple other Darknet investigations. From as far away as Philadelphia investigators discovered drug shipments to LINT’s Tacoma address. When law enforcement served a court authorized search warrant on LINT’s residence, they found a variety of controlled substances, a scale, packaging material, materials reflecting a full-scale shipping operation, and a drug ledger indicating dozens of customers. Law enforcement also seized significant amounts of precious metals, cash, and multiple digital devices – all of which were forfeited pursuant to the court’s order.
LINT was indicted in April 2018, and pleaded guilty in September 2018 to conspiring with the administrators of Dream Market darknet marketplace to distribute LSD and other controlled substances.
The case was investigated by the U.S. Postal Inspection Service (USPIS) and Homeland Security Investigations (HSI).
The case was prosecuted by Assistant United States Attorney Thomas Woods and Special Assistant United States Attorney Joe Silvio. Mr. Silvio is an attorney with Homeland Security, specially designated to prosecute drug trafficking cases in federal court.
Yacht Captain Sentenced to Three Years in Prison for Misconduct or Neglect that Resulted in DeathRead the Press Release
On November 28, 2018, Mauricio Alvarez was sentenced to 33 months in prison by U.S. District Judge Cecilia M. Altonaga for his misconduct or neglect of a ship officer that resulted in the death of an individual, in violation of Title 18, United States Code, Section 1115 (Case No. 18-CR-20314).
Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida, and Zinnia P. James, Special Agent in Charge, Coast Guard Investigative Service (CGIS), Southeast Region made the announcement.
According to the court record, including the agreed upon factual proffer, Alvarez, was the captain of the MIAMI VICE, a 91-foot performance yacht. Alvarez was hired to serve as captain during illegal charters on board the MIAMI VICE by the yacht’s owner, Laurent Marc-Antoine Jean Maubert-Cayla (Maubert-Cayla). The MIAMI VICE charter operation was illegal because, among other reasons, Alvarez did not have a valid United States Coast Guard license. In fact, Alvarez received a ticket from the United States Coast Guard in March of 2018 for operating a charter on board the MIAMI VICE without an appropriate Coast Guard license. In addition, Alvarez was heavily using cocaine during the period he served as captain on board the MIAMI VICE, and was filmed using cocaine by the owner of the MIAMI VICE as recently as March 29, 2018.
On April 1, 2018, Alvarez was captain of the MIAMI VICE during a paid charter. Alvarez drove the yacht at a high rate of speed and beached it on Monument Island, where the charter patrons, including victim “R.M.,” began to swim. Alvarez then decided to leave the Island, but did not ensure that everybody was on board the yacht before doing so. Alvarez started the yacht’s 4500 horsepower engines and accelerated them in reverse, directly to where the victim was swimming. The victim was caught in the MIAMI VICE’s propellers and killed.
On November 5, 2018, Maubert-Cayla pled guilty to misconduct or neglect of a ship owner that resulted in the death of an individual (Case No. 18-CR-20678). He is scheduled to be sentenced by U.S. District Judge Federico A. Moreno on January 10, 2019, at 9:30 a.m.
U.S. Attorney Fajardo Orshan commended the investigative efforts of CGIS in this matter. This case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet and Coast Guard Special Assistant U.S. Attorneys Phil Jones and Emily Rose.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Wilkinsburg Man Pleads Guilty in Crack Cocaine Distribution RingRead the Press Release
PITTSBURGH, Pa - A resident of Wilkinsburg, Pa., pleaded guilty in federal court to a charge of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
Eric Cansler, 47, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Cansler conspired with others to distribute and possess with intent to distribute a quantity of cocaine base.
Judge Hornak scheduled sentencing for April 4, 2019 at 3 p.m. The law provides for a total sentence of not more than 30 years in prison, a fine of not more than $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
This prosecution is part of a long-term investigation by the FBI Greater Pittsburgh Safe Streets Task Force (GPSSTF), which targeted a large scale Drug Trafficking Organization operating in Butler, Beaver and Allegheny Counties. The GPSSTF is comprised of dedicated law enforcement professionals from the Wilkinsburg Police Department, Pennsylvania Attorney General’s Bureau of Narcotics Investigations, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pittsburgh Bureau of Police and the FBI. The GPSSTF and the United States Attorney’s Office, Western District of Pennsylvania, would like to recognize the significant contributions made to this investigation by the Pennsylvania State Police, United Sates Postal Inspection Service, Cranberry Township Police Department and the New Brighton Police Department. Homeland Security Investigations also assisted in the investigation.
This investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
West Yellowstone woman admits embezzling more than a half-million dollars from employerRead the Press Release
MISSOULA – A West Yellowstone woman admitted today in federal court to embezzling more than a half million dollars from her employer over a seven-year period, U.S. Attorney Kurt G. Alme said.
Ann Bennett Hermanson, 54, pleaded guilty to wire fraud during a hearing in Missoula.
U.S. Magistrate Judge Jeremiah C. Lynch presided. Judge Lynch set sentencing for April 12. Hermanson is released.
Hermanson faces a maximum 20 years in prison, a $250,000 fine and three years supervised release. A restitution agreement calls for Hermanson to pay $501,975.50.
If the case had gone to trial, the government would have presented the following information as evidence:
Hermanson worked for 15 years as a para-professional in the West Yellowstone office of a regional accounting and business services company. As a para-professional, Hermanson had access to bank account information and signature stamps for the company’s customers.
Starting in 2009 and continuing until April 2016, Hermanson embezzled about $630,327.88 from several accounts belonging to the company’s customers. She has repaid some of the money and has agreed to $501,975.50 restitution.
The thefts were discovered in April 2016 when a customer reported irregularities in her business account to the company’s corporate office.
Hermanson embezzled funds by writing checks to herself for personal credit card expenses and other bills and using customers’ signature stamps to sign the checks. She also obtained a duplicate credit card for one victim’s account and used it to make unauthorized purchases.
When approached by a company employee in April 2016 about suspicious transactions, Hermanson admitted to embezzling money. She also admitted the thefts to an FBI agent and identified five business accounts from which she stole money.
Assistant U.S. Attorney Timothy Racicot is prosecuting the case, which was investigated by the FBI.
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United States Attorney's Office to Hold Project Safe Neighborhoods (PSN) Press EventRead the Press Release
Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, in conjunction with St. Clair County State’s Attorney Brendan Kelly, East St. Louis Mayor Emeka Jackson-Hicks, Illinois State Police Director Leo Schmitz, United States Marshal Brad Maxwell, along with representatives from the Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Drug Enforcement Administration (DEA), announced today that there will be a press event held on Tuesday, December 4, 2018, at 10:00 am, at the Office of the United States Attorney for the Southern District of Illinois, located at Nine Executive Drive, Fairview Heights, IL, 62208, concerning progress made on the Project Safe Neighborhoods (PSN) initiative.
Members of the Media are advised to have press credentials and to arrive in sufficient time to allow for security screening prior to the event.
U.S. Attorney’s Office Recognized by the Commercial Appeal as a Memphis Area Top Workplace for 2018Read the Press Release
Memphis, TN - On Sunday, December 2, 2018, the United States Attorney’s Office for the Western District of Tennessee was named and recognized by The Commercial Appeal newspaper as a Memphis Area Top Workplace for 2018. For the sixth year, The Commercial Appeal partnered with Philadelphia-based Energage, an employee research and workplace culture consultant firm, to determine the Memphis area’s Top Workplaces based upon employee survey feedback.
This was the first year that the U.S. Attorney’s Office was nominated to participate in the Top Workplaces program for recognition as one of the "Best Places to Work" in Memphis, and was ranked 12th out of 28 companies, schools, government agencies and nonprofits selected as Top Small Workplaces in Memphis.
Energage measured performance along several factors, including: Alignment, Connection, Effectiveness, and Management. Survey data was compared to the average of similarly sized organizations in the region, and ranked based upon score. The employee engagement survey measured factors involving the foundation of an employee’s job, including pay and benefits, as well as factors involving the organization’s core fundamentals—its values, mission, and culture. To meet the Top Workplaces standard, employees must believe in where the organization is headed, how it will get there, and the feeling that everyone is united together in the mission.
U.S. Attorney D. Michael Dunavant said, "As the leader of our office, I believe that we are in fact one of the best places to work, and our selection and ranking as a Top Workplace reflects that in an outstanding way. At the U.S. Attorney’s Office, we take pride in employee engagement, job satisfaction, competitive pay and benefits, high performance and productivity, and a culture of excellence. The mission of the Department of Justice is one that our employees identify with and fully embrace, and we have some of the best and brightest of federal employees. Congratulations to the employees of the U.S. Attorney’s Office, and thanks to The Commercial Appeal for this wonderful honor and recognition."
Photo below: First Assistant United States Attorney Joe Murphy, who accepted the 2018 Top Workplaces Award on behalf of the office at the Awards Ceremony on November 29, 2018.
Three Convicted in Federal Court Following Armed Bank Robbery and Car Chase in North Myrtle BeachRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that three defendants—Lance Hardiman, Justin Pressley, and Rodrick Berklery—were convicted in federal court for robbing the South State Bank in North Myrtle Beach, South Carolina, in May 2016.
Hardiman stood trial this week in United States District Court in Florence before District Court Judge R. Bryan Harwell. The jury returned guilty verdicts on all counts: armed bank robbery, witness tampering, being a felon in possession of a firearm, and two counts of using a firearm in furtherance of crimes of violence.
Evidence presented during the trial showed that on May 4, 2016, the three defendants—Hardiman, Pressley, and Berklery—armed with handguns and wearing gloves and masks, robbed the South State Bank in North Myrtle Beach. After entering the bank, Hardiman stood at the door while Pressley and Berklery fired their weapons and jumped over the counter. They forced the tellers to empty their tills into a bag, threatening the women’s lives. The men obtained over $30,000 and fled the bank. Bank employees were able to trip a silent alarm and place a dye pack in the bag, and they identified the type of car that the men got into as a silver Chevrolet Impala.
Responding to the call, a detective with the North Myrtle Beach Police Department saw a silver Impala with three men inside. The officer turned on his blue lights, and the Impala took off at high speeds. The officer followed the Impala for approximately five miles as Pressley fired an AK-47 out of the back window at the officer and Hardiman shot out of the passenger’s window. As the chase wound through a residential community, the suspects reached speeds of over 80 miles an hour while indiscriminately shooting at the officer and passing motorists.
Hardiman, Pressley, and Berklery proceeded towards Longs, where one of them lived. They kept firing at the officer, hitting his vehicle twice. One round missed the officer by less than an inch. The officer thought he had been hit and crashed his car.
The three men continued driving and encountered a lieutenant with the North Myrtle Beach Police Department, who deployed spike strips in an effort to end the high speed chase. Hardiman fired out the window at the lieutenant, hitting his car, as Berklery swerved to miss the spike strip. Berklery lost control of the car and drove it off the road. The three defendants then ran from the scene into a heavily wooded area.
A manhunt began, with North Myrtle Beach Police Department, Horry County Police Department, South Carolina Law Enforcement Division (SLED), South Carolina Department of Natural Resources (SCDNR), Myrtle Beach Police Department, and Federal Bureau of Investigation (FBI) all participating in the search. A perimeter was set, and within an hour law enforcement encountered Pressley hiding in some brush.
Tracking the other two suspects, law enforcement encountered two sets of footprints going into standing water wearing shoes. On the other side of the water, one set of footprints was still wearing shoes and the other was barefoot. Hardiman was captured several hours later walking out of the woods. He had stripped down to just shorts and had scratches and scrapes, apparently from running through brush. Berklery was captured approximately 11:30 p.m. in a junkyard wearing just his boxers and no shoes.
During the trial, it was revealed that two of the members of this robbery crew had previously robbed another bank in Horry County and a restaurant.
Following his conviction by a unanimous jury, Hardiman faces a mandatory minimum sentence of 35 years to run consecutive to any other sentences imposed and a maximum penalty of life in federal prison. Judge Harwell will sentence him after receiving and reviewing a presentencing report prepared by the United States Probation Office. Pressley pled guilty to using a firearm in furtherance of a bank robbery and witness tampering and agreed to a 25-year federal prison sentence. Berklery pled guilty to using a firearm in furtherance of a bank robbery and in furtherance of witness tampering and agreed to a 30-year sentence.
U.S. Attorney Lydon stated, “We will always support our local and state partners in ensuring that the most dangerous criminals are held accountable for their actions. This investigation, manhunt, and prosecution was the result of many wonderful agencies working in unison to ensure that the guilty were caught and convicted.”
Chief Deputy Solicitor for the 15th Circuit Scott Hixson said, “The case was successful due to the courage and persistence of all involved. From the bravery of the tellers, to the officers who chased and disabled the defendants, to the numerous agencies who participated in the manhunt – this outcome would not have been possible without so many people in the community coming together to hold the violent individuals accountable for their acts. We would like to thank our federal partners in FBI and the U.S. Attorney’s Office for their dedication to ensure a just outcome occurred.”
Chief Joseph Hill of the Horry County Police Department commented, “Although I was not Chief when this incident occurred, it remains that the men and women of law enforcement continue to keep their community safe in the most hazardous conditions. I’m very proud of the cooperation of every agency involved in the successful apprehension and prosecution of these very dangerous men. Every day, law enforcement officers stand ready to protect and serve, no matter the risk, to keep our community safe.”
The case was investigated by agents of the FBI, North Myrtle Beach Police Department, Horry County Police Department, SLED, SCDNR, Myrtle Beach Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001 that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Turning the tide of rising violent crime in America is a top priority for the Department of Justice, which has reinstituted PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy.
Assistant United States Attorneys Jim May of the Columbia office and Derek Shoemake of the Florence office prosecuted the case, along with Special Assistant United States Attorney and Chief Deputy Solicitor of the 15th Circuit Scott Hixson.
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Thomas Andrew Malotte Sentenced to 130 Months in Federal Prison for Posession of Child PornographyRead the Press Release
KNOXVILLE, Tenn. - On November 30, 2018, Thomas Andrew Malotte, 54, of Sevierville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 130 months in federal prison for possessing child pornography.
Upon his release from prison, Malotte will be supervised by the U.S. Probation Office for 10 years and be required to register with the sex offender registry in any state in which he resides, works, or attends school. Malotte was also ordered to pay $500 to each of his victims and forfeit his computer equipment used to obtain, store and access the illegal materials online.
Malotte pleaded guilty to a federal indictment in April 2018. Agents of the Internet Crimes Against Children Task Force ICAC) identified Malotte as a distributor of child pornography during online undercover operations.
This investigation was conducted by the Knoxville Police Department’s ICAC. Assistant U.S. Attorney Bart Slabbekorn represented the United States in court proceedings.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
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Texas Source of Supply Sentenced to 174 Months for Trafficking CocaineRead the Press Release
Memphis, TN – A Brownsville, Texas man has been sentenced to 174 months imprisonment for conspiracy to distribute and distribution of 20 kilograms of cocaine. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on September 25, 2017, an agent with the West Tennessee Drug Task Force stoppedMelvin Bullock and Tellerick Simon for a traffic violation on I-40. During that stop, the agent became suspicious of Bullock after he gave several false answers and provided a fake driver's license. The agent utilized his canine, who was alerted to the presence of narcotics. A subsequent search revealed 20 individually wrapped bundles of cocaine located in the back seat. The total weight of the cocaine was approximately 50 pounds.
DEA agents traced the drugs to Jose Manuel Escobedo in Brownsville, Texas. The agents discovered Escobedo received the cocaine in Brownsville after it was smuggled over the border from Mexico. Escobedo would then send the cocaine to Houston, Texas, where he coordinated the retrieval by Bullock and Simon. The drugs came through Memphis en route to East Tennessee.
U.S. Attorney D. Michael Dunavant said, "Interstate 40 is a major drug trafficking corridor into and through West Tennessee. Disrupting drug trafficking organizations and interdicting the flow of poisonous drugs into our communities is a top priority of the U.S. Attorney’s Office, and we work with our federal, state, and local law enforcement partners to remain vigilant in the fight against foreign and domestic drug suppliers. Drug trafficking is not a victimless crime, and this significant federal sentence sends a message that such criminal activity will not be tolerated."
On November 30, 2018, U.S. District Court Judge Sheryl H. Lipman sentenced Escobedo to 174 months in federal prison. Simon pleaded guilty to trafficking 20 kilograms on June 14, 2018. Bullock pleaded guilty to the same crime on July 27, 2018.
This case was investigated by the West Tennessee Drug Task Force, an extension of the Shelby County District Attorney General's Office, and the Drug Enforcement Administration.
Special Assistant U.S. Attorney Joseph Griffith prosecuted this case on behalf of the government.
TCU Employee Sentenced for Stealing Money from Upward BoundRead the Press Release
A former Texas Christian University employee was sentenced today to five years in prison for theft of federal funds, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Margaret Faust, 69, who served as Assistant Director of TCU’s Upward Bound program for roughly 18 years, pleaded guilty in August to embezzling money from the program, which helps low-income high school students prepare for college.
According to court documents, Faust routinely pocketed cash from funds awarded to the university by the Department of Education. She stored the money – allotted for Upward Bound participant stipends – in a locked drawer inside her desk before depositing it in her personal checking account.
As part of her scheme, Ms. Faust instituted a program that allowed her to withhold the stipend money in $7 increments – about the cost of students’ bus fare, one former Upward Bound participant testified in court.
As a result of her conduct, TCU’s Upward Bound program was terminated.
Ms. Faust has paid back more than $210,000 – but it’s possible she stole significantly more than that, prosecutors told U.S. District Judge Reed O’Connor at her sentencing hearing today.
The Federal Bureau of Investigation and the U.S. Department of Education conducted the investigation. Assistant U.S. Attorney Megan Fahey prosecuted the case.
Suburban Pittsburgh Man Sentenced to 5 Years in Prison for Possessing MethRead the Press Release
PITTSBURGH, Pa. – A former resident of Scott Township, Pennsylvania, has been sentenced in federal court to a term of imprisonment of five years, to be followed by five years of supervised release on his conviction on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Court Judge Mark R. Hornak imposed the sentence Friday on Charles D. Outcalt, Jr., 26.
According to information presented to the court, on July 29, 2016, Scott Township Police responded to a report of a home invasion in progress. Unbeknownst to police at the time, the reporting party was hallucinating. However, the front door was open and the lights were on inside so officers entered to clear the house for suspects. Officers observed the defendant and another individual in one of the bedrooms. Officers instructed both individuals to put their hands up, but the defendant kept reaching for a black backpack that was sitting on the bed.
Search incident to arrest, officers recovered a small baggie containing crystal methamphetamine from the defendant as well as $175.00 in his right pants pocket. Officers recovered a Cobra Enterprise pistol from the backpack. On the bed, officers saw a clear white pipe commonly used to smoke methamphetamine and an electronic scale with white residue. Officers obtained a search warrant and in various places in the bedroom, officers recovered glass bongs, a small plastic baggie that contained several crystal colored pieces of methamphetamine as well as crystal methamphetamine in an ashtray. Officers recovered a total of over 50 grams of pure methamphetamine from the residence.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Scott Township Police Department and the Drug Enforcement Administration conducted the investigation leading to the Indictment in this case.
Springfield, Massachusetts Man Pleads Guilty to Heroin TraffickingRead the Press Release
CONCORD- Darrell Self, 44, of Springfield, Massachusetts, pleaded guilty in federal court to possession of heroin with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on January 23, 2017, New Hampshire State Troopers conducted a traffic stop of a vehicle Self was driving on Interstate 95 near Portsmouth. During the course of the traffic stop, Self threw an object over the guardrail of the highway. Officers later recovered the object and determined that it was a bag containing approximately 40 grams of heroin. A subsequent pat-down search of Self revealed that he had a wad of cash totaling $1,106 in his pocket.
Self is scheduled to be sentenced on March 19, 2019.
“Drug trafficking continues to do tremendous damage to communities throughout New Hampshire,” said U.S. Attorney Murray. “Dealers who distribute deadly drugs in the Granite State will be arrested and prosecuted aggressively. I commend the New Hampshire State Troopers whose work led to the arrest and prosecution of this heroin trafficker.”
This matter was investigated by the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Jarad Hodes.
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Soledad Gang Member Who Faked His Own Kidnapping Arrested in FresnoRead the Press Release
San Francisco - Jorge Jasso, 26, a Norteño street gang member, was arrested in Fresno, California on November 29, 2018 following his disappearance on October 22, 2018, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. A federal grand jury indicted Jasso on September 27, 2018 along with fourteen other gang members for a broad range of racketeering crimes, including racketeering conspiracy, conspiracy to commit murder and assault in aid of racketeering, attempted murder in aid of racketeering, and assault with a dangerous weapon in aid of racketeering. Jasso was scheduled to appear in magistrate court in San Jose for a bail review hearing on October 22, 2018, the day he disappeared. His girlfriend, Kimberly Herrera Villacorte, called 911 that morning to report that unknown individuals had burst into Jasso’s residence, dragged her into a closet by the hair, and kidnapped him. The ankle monitor that had been placed on Jasso was found on the ground next to the residence. U.S. Magistrate Judge Virginia K. DeMarchi issued a bench warrant against Jasso for failing to appear before the Court on that date, as required.
Suspecting that this might be a hoax given a number of inconsistencies in Herrera’s account of the events, the FBI and local law enforcement agencies surveilled Herrera for almost six weeks, which eventually led them to Jasso. On November 29, 2018, Jasso and Herrera were in a Motel 6 in Fresno, California, and were seen entering a white GMC truck. When police tried to pull it over, the truck tried to escape and crashed into another vehicle. After the collision, Jasso jumped out of the truck and attempted to run from the police. After a short chase, Jasso was taken into custody and was found to be in possession of a concealed firearm. Jasso was arrested along with the other occupants of the vehicle, including Villacorte.
This morning, the United States Attorney’s Office filed a criminal complaint against Herrera, 22, charging her with making false statements to government agents, in violation of Title 18, United States Code 1001(a) and aiding and abetting failure to appear, in violation of Title 18, United States Code, Section 3146(a)(1) and 2. If convicted, Herrera faces up to five years in prison for lying to the FBI and up to ten years in prison for assisting Jasso in jumping bail, however, the Complaint filed today merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. In addition, any sentence following a conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Last week’s arrest and efforts to locate Jasso are the product of a coordinated effort by the FBI, the California Highway Patrol, the Soledad Police Department, the Salinas Police Department, the California Department of Corrections and Rehabilitation, Multi-Agency Gang Enforcement Consortium, and the Fresno Police Department.
Simsbury Man Sentenced to Prison for Multimillion Dollar Stranger-Originated Life Insurance SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DANIEL CARPENTER, 64, of Simsbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 30 months of imprisonment, followed by three years of supervised release, for defrauding insurance companies into issuing insurance policies on the lives of elderly people for the financial benefit of Carpenter and other investors in the scheme.
On June 9, 2016, Judge Chatigny found Carpenter guilty of 57 counts of conspiracy, mail and wire fraud, money laundering and illegal monetary transaction offenses stemming from the scheme, also known as a stranger-originated life insurance scheme. The verdict followed a bench trial that began on February 16, 2016 and concluded on March 21, 2016. Carpenter had waived his right to a trial by jury.
According to the evidence at trial, Carpenter controlled a series of companies, based in Simsbury and Stamford, that developed the Charter Oak Trust (the “Trust”), an employee welfare benefit plan and trust whose primary objective was to secure insurance policies on the lives of elderly individuals that could be held by Carpenter’s companies as investments, or resold on the life settlement market, which is a third-party market for life insurance policies. Typically, insurance agents working with, for, or on behalf of Carpenter and his companies approached elderly individuals (the “Straw Insureds”). The agents promised to provide the Straw Insureds with free life insurance for two years, and, at the end of the two years, would attempt to sell the policies on the life settlement market. In most cases, the agents promised the Straw Insureds that they would receive a portion of any sale proceeds.
The evidence at trial established that Carpenter, working with insurance agents, caused to be submitted to several insurance providers numerous insurance applications that contained several material misrepresentations, including falsely denying that third-parties were paying the premiums for the insurance, falsely denying discussions about the resale of the policies, falsely inflating the net worth and/or income of the insured, and falsely claiming that the insurance was being purchased for legitimate estate planning-related needs. All applications were signed by Carpenter’s brother-in-law, who acted as trustee of the Charter Oak Trust, which was to be the “owner” of all policies in the trust. Moreover, the applications purported that the Charter Oak Trust was a bona fide welfare benefit trust under Internal Revenue Code Section 419(e), wherein employers would be making contributions to the Charter Oak Trust in order to fund the life insurance policies for the benefit of certain select employees.
The evidence further established that, in truth, no “employer” or Straw Insured ever paid a premium into the Charter Oak Trust. Rather, the premiums were funded by loans primarily from another company headquartered in Simsbury and controlled by Carpenter. In many cases, those loans were, in turn, financed by another third-party financing company based in Stamford. The loan arrangements were withheld from the insurance providers, who would not have issued policies had they known the true nature of the Charter Oak Trust, and had the insurance applications been filled out truthfully.
Based on the false applications that were submitted to the insurance providers, the Charter Oak Trust procured 84 insurance policies that had a total aggregate death benefit of more than $459 million on the lives of 76 different Straw Insureds. In addition, another company controlled by Carpenter received more than $12 million in commissions from the insurance providers, who would not have paid the commissions had they known about the false representations on the insurance applications and the true nature of the Charter Oak Trust.
Finally, the trial evidence showed that one Straw Insured died within the first two years of the issuance of the two insurance policies on his life. Those policies had been issued in late 2006 and early 2007 based on misrepresentations similar to those described above, specifically that his policies were not being funded by a third party and were not intended for resale. The two insurance policies had a combined death benefit of $30 million, which the insurer paid to the Charter Oak Trust in May 2009. At Carpenter’s direction, the Charter Oak Trust failed to pay the $30 million to the Straw Insured’s beneficiary, and instead used the funds to pay for various expenses, including other insurance premiums that were related to the underlying fraud, as well as to purchase a home in Rhode Island.
Judge Chatigny will issue a restitution order at a later date.
Carpenter, who is released on bond, was ordered to report to prison on March 4, 2019.
Carpenter was previously convicted in the District of Massachusetts of mail fraud and wire fraud offenses stemming from an unrelated business scheme. On February 26, 2014, he was sentenced to 36 months of imprisonment for those offenses.
This matter was investigated by the U.S. Department of Labor – Office of the Inspector General, the U.S. Department of Labor – Employee Benefits Security Administration’s Boston Office, and the Special Inspector General for the Troubled Asset Relief Program. The case was prosecuted by Assistant U.S. Attorneys David E. Novick and Neeraj N. Patel.
Rochester Man Sentenced on Gun ChargeRead 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 Anthony Alberti, 36, of Rochester, NY, who was convicted of being a prohibited person in possession of a firearm, was sentenced to 30 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that on July 14, 2014, an order of protection was issued against Anthony Alberti in Rochester City Court. As a result, Alberti was prohibited from possessing firearms. Despite that restriction, the defendant arranged to have a semi-automatic handgun mailed to him from Texas. On June 28, 2018, Alberti picked up the package containing the firearm at a FedEx Shipping Center in Rochester. The defendant utilized an Uber to travel to FedEx. After obtaining the package, the defendant returned to the Uber and asked the driver to take him to a Walmart so he could purchase rounds of ammunition. After arriving at the Walmart, the Uber driver called 911 and officers recovered the firearm.
The sentencing is the result of an investigation by Greece Police Department, under the direction of Chief Patrick D. Phelan, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
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Rochester Man Pleads Guilty to Lying to Officers During Shooting InvestigationRead 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 Jashua Figueroa, 19, of Rochester, NY, pleaded guilty to misprision of a felony before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of three years in prison and a $250,000 fine.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that co-defendant Obed Torres Garcia is accused of assaulting federal officers at 6 Burbank Street in Rochester, who were executing a state search warrant in a federal narcotics investigation on January 29, 2018. At that time, Garcia was in the rear driver’s side area of a vehicle parked in the driveway of 6 Burbank Street. Jashua Figueroa was seated in the front passenger seat. When the officers exited their van at the residence, wearing clearly marked law enforcement uniforms, Garcia got out of the vehicle and fired a handgun at the officers.
Following the shooting, Figueroa gave a statement to Rochester Police Department investigators claiming that he never saw Obed Garcia Torres with a firearm, when he in fact had seen Garcia with a firearm and knew that Obed Torres Garcia used said firearm to shoot at officers that day.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives Violent Crime Task Force, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; the Rochester Police Department, under the direction of Chief Mark Simmons; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Greece Police Department, under the direction of Chief Patrick Phelan; the Brighton Police Department, under the direction of Chief Mark Henderson; and U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Gregory Johnson.
Sentencing is scheduled for February 8, 2019, at 2:00 p.m. before Judge Geraci.
Remarks by U.S. Attorney William M. McSwain at the Pennsylvania Manufacturers’ Association Annual SeminarRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain was honored to speak on Saturday, December 1, 2018 at the Pennsylvania Manufacturers’ Association Annual Seminar in New York City as part of the annual gathering of the Pennsylvania Society. U.S. Attorney McSwain’s remarks as prepared for delivery are below.
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When David Taylor graciously asked me to speak here today, I said two things: first, I’m honored, and second, how much time do I have? He said to me: five minutes. I said, OK, well, what would you like me to cover? He said – how about what you believe and what your office stands for. And I thought – wow, five minutes? Really? My wife says I can’t clear my throat in five minutes and I’m supposed to cover all of that?
Well, here’s my best shot, in five minutes or less. First of all, on the most practical of levels, I believe that my position and my office exist to keep the community safe. But anybody who leads a prosecutor’s office – especially one in a major urban area – would say that, right? I do believe, of course, in keeping the community safe . . . but I also believe in something bigger than that.
I believe in democracy. I believe in respecting the will of the people. In this country, the law is the will of the people. It is my job to enforce the law and to protect the rule of law. By doing so, I show my respect for the will of the people and I promote our nation’s representative democracy. Because the rule of law is the backbone of this incredible experiment in self-government that we call America.
I believe that if, for some reason, you don’t like some aspect of the law, every one of us is empowered to work to change it. That’s the beauty of representative democracy – it is the greatest force for political equality our world has ever seen. If you’re an elected official and you don’t like the law, then introduce a bill. If you’re a citizen and you don’t like the law, then raise your voice to your legislators. And at a bare minimum, make sure you vote. But don’t ask me to violate my oath by not enforcing the law. Don’t ask me to do an end-run around the democratic process. Because I’m not here to do that. I’m here to help protect democracy. I’m here to promote the will of the people, which is expressed through our laws.
So, for example, if you want to set up a drug house (or a euphemistically titled “safe” injection site) in Kensington for people to shoot up heroin, or if you want to declare your city or municipality a “sanctuary” from the enforcement of immigration law, or if you want to forcibly silence the free speech of those who disagree with you – I don’t doubt your good intentions, but you are disrespecting democracy because what you propose is illegal. And I will use every tool at my disposal and every power that I have to hold you accountable.
I believe that respect for the rule of law can be and should be a powerful unifying force in our country. There is much more that unites us as Americans than divides us. We all believe in democracy, and we all believe in respecting the will of the people. We all love our country. We can and should come together as Americans by remembering that. By remembering that we live in the greatest and the freest country in the history of the world. A country that is founded on respect for our democratically enacted laws.
So that’s what I believe. And that’s what my office stands for. God Bless all of you, and God Bless the United States of America. Thank you.
Registered sex offender from Van Wert sentenced to 19 years in prison for downloading images of young children being raped and abusedRead the Press Release
A Van Wert man was sentenced to more than 19 years in prison for downloading images of young children being raped and abused.
Roy Allen Nichols, 56, was sentenced to 235 months in federal prison. Nichols previously pleaded guilty to receipt and distribution of child pornography. He was a registered sex offender because of previous convictions in state court for pandering and criminal enticement.
Nichols in June 2017 was found to have downloaded multiple images of children as young as two years old being abused and raped by adults, according to court documents.
"These are cases with real victims, children whose lives will be forever changed because adults assaulted and violated them," U.S. Attorney Justin Herdman, for the Northern District of Ohio, said in a news release. "We will continue to prosecute those who re-victimize these children by sharing and downloading these images."
The case is being prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman following an investigation by the FBI in Lima.
Project Huntington Update: Two Sentenced for Their Roles in Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – Two individuals were sentenced today for their roles in the Peterson drug trafficking organization (DTO), announced United States Attorney Mike Stuart. The Operation Saigon Sunset investigation was conducted by the Drug Enforcement Administration and the Violet Crime and Drug Task Force West.
“DEA and the Violent Crime and Drug Task Force West did an outstanding job in this investigation,” said United States Attorney Mike Stuart. “There is no revolving door in the federal system, and drug traffickers causing havoc and despair in our cities, will find themselves behind bars.”
David Miller, also known as “John,” 26, who was caught with fentanyl and cocaine, was sentenced to 90 months in prison. Miller previously pled guilty to an indictment charging him with conspiracy to distribute heroin and fentanyl. Miller admitted that between August 2017 and April 2018 he conspired with Willie Peterson, also known as “Chill,” and Manget Peterson, also known as “Money,” to distribute heroin and fentanyl in Huntington, West Virginia. As part of the plea agreement, Miller admitted that in March 2018 he traveled to Detroit, Michigan and purchased fentanyl and cocaine. Michigan State Police conducted a traffic stop on Miller and recovered 195 grams of fentanyl and 27 grams of cocaine. Miller admitted he intended to transport the substances to Huntington to sell.
Ashley Pardue, 33, who was caught selling heroin, was sentenced to time served. Pardue previously pled guilty to an indictment charging her with conspiracy to distribute heroin. Pardue admitted to selling heroin in January 2018 at the WalMart on Route 60 in Huntington.
United States District Judge Robert C. Chambers imposed the sentences. Assistant United States Attorney Stephanie S. Taylor handled the prosecutions.
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Political Operative Convicted of Federal Campaign Finance Crimes in Two Congressional Campaigns and of Obstructing Investigation by Federal Election CommissionRead the Press Release
A jury sitting in the Eastern District of Pennsylvania convicted longtime political operative Kenneth Smukler, 58, of Villanova, Pennsylvania, today on charges of making and concealing illegal campaign contributions in two Congressional primary elections, and of obstructing justice in an investigation by the Federal Election Commission (FEC), announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania.
“Today’s convictions demonstrate the Department of Justice’s commitment to ensuring a level playing field in the financing of federal elections,” said Assistant Attorney General Benczkowski. “We will hold accountable those who violate campaign finance and other laws designed to protect the fairness and transparency of our democracy.”
“Smukler was the mastermind of multiple crooked political schemes,” said U.S. Attorney McSwain. “He showed a true pattern of deception by misusing funds and lying to corrupt the entire political process. The only way to guarantee open and fair elections is to have everyone play by the same rules. Smukler ignored those rules and broke the law so that his candidates could try to win at all costs. We are grateful that the jury saw through his lies and held him accountable for his widespread criminal conduct.”
The jury found Smukler guilty of conspiracy to violate federal law, making and causing unlawful campaign contributions and causing false statements to the FEC in connection with a 2012 congressional primary campaign in a Philadelphia-area Congressional district. The jury further found Smukler guilty of making and causing unlawful campaign contributions, causing the filing of false reports to the FEC concerning contributions and expenditures, causing false statements to the FEC in connection with a 2014 congressional primary campaign in another Philadelphia-area Congressional district, and obstructing an FEC investigation.
In 2012, Smukler engaged in a conspiracy to make a concealed payment of $90,000 to Congressional candidate and former Philadelphia Municipal Judge Jimmie Moore to get Judge Moore to drop out of the primary election race. Smukler, who worked for another candidate, orchestrated the payment of the money through his own companies, a shell company of Judge Moore’s campaign manager, Carolyn Cavaness, and another campaign consultant, D.A. Jones. Judge Moore, Cavaness, and Jones all have pleaded guilty separately.
From 2014 through 2015, Smukler, as a campaign manager, also made, caused, and concealed excess and conduit contributions and engaged in a falsification and obstruction scheme involving a different Congressional candidate. The excess contributions came from associates of Smukler and were funneled through two of Smukler’s consulting companies. The conduit contributions were routed through another political consultant and the candidate.
The jury found that in or about April 2014, Smukler became aware that the campaign was running out of funds that it could spend on primary election expenses. Smukler nevertheless directed the campaign to continue paying for goods and services associated with the primary election. In or about May 2014, one of Smukler’s companies made a $78,750 payment to the campaign that was used to pay for primary election expenses. Smukler falsely told the campaign that this money came from a “segregated media account,” when in fact the payment was funded by an associate of Smukler’s and therefore constituted an illegal campaign contribution.
Moreover, after Smukler’s candidate lost the primary election, the campaign did not have sufficient funds to repay the contributions that the campaign had received for the general election. To conceal this shortfall, Smukler funneled illegal contributions totaling $150,000 from an associate to the campaign through two of Smukler’s consulting companies. Smukler falsely told the campaign that these payments were refunds of money that had been “escrowed” in Smukler’s companies for general election expenses, when, in fact, the money had come not from any such account but from Smukler’s associate, and the money could not have been “escrowed” campaign funds because Smukler’s companies had already spent a significant portion of the funds they had received from the campaign.
Smukler further caused the campaign to falsely characterize the payments from his companies as refunds in FEC reports and in a letter to the FEC from unwitting campaign counsel, which led the FEC to dismiss a pending complaint against the campaign by another candidate in the primary.
The jury also convicted Smukler of making unlawful conduit contributions to the campaign in 2014, through Jones, and again in 2015 through the candidate herself.
Judge Jan E. DuBois set sentencing for March 13, 2019.
The case was investigated by the FBI and prosecuted by Richard C. Pilger, Director of the Election Crimes Branch of the Public Integrity Section of the Criminal Division; Rebecca Moses, Trial Attorney of the Public Integrity Section and by Assistant U.S. Attorney Eric L. Gibson of the Eastern District of Pennsylvania.
Pittsburgh Man Responsible for Multiple Armed Bank Robberies Sentenced to 8+ Years in PrisonRead the Press Release
PITTSBURGH, Pa. – A former resident of Pittsburgh, Pa., has been sentenced in federal court to eight years and 8 months in prison, to be followed by three years of supervised release, on his convictions on federal bank robbery charges, United States Attorney Scott W. Brady announced today
United States District Judge Arthur J. Schwab imposed the sentence on Thomas Hetrick, 51. Hetrick was detained after his initial appearance and will remain detained as he begins to serve his sentence.
According to information presented to the court, Hetrick, while armed with either a knife or a gun, robbed the Dollar Bank, located at 1712 East Carson Street, Pittsburgh, PA, on August 21, 2017; the First Commonwealth Bank, located at 2501 East Carson Street, Pittsburgh, PA, on August 24, 2017 and again on August 30, 2017; and the First Commonwealth Bank, located at 500 East Waterfront Drive, Pittsburgh, PA 15210, on September 25, 2017. Hetrick also attempted to rob, while armed with a knife, the same First Commonwealth Bank, located at 2501 East Carson Street, Pittsburgh, PA, on September 25, 2017.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The FBI Pittsburgh’s Violent Crimes Task Force, with assistance from the Homestead Police Department, the Allegheny County Sheriff’s Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Thomas Hetrick.
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. In October 2017, as part of a series of actions to address this crime trend, the Attorney General announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Philadelphia Man Sentenced to Life Imprisonment for Violent Crime SpreeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Robert Hartley a/k/a “Dooman,” 47, of Philadelphia, was sentenced today to life imprisonment for his convictions in two separate jury trials.
Hartley was a core member of a criminal organization comprised of 20 individuals who conspired to commit armed robberies and kidnappings to steal drugs, drug proceeds, and other items of value, from approximately October 2012 to April 2014. Hartley and his co-conspirators conducted surveillance of their victims, tracked their victims using GPS devices, and used police scanners to monitor police activity and avoid detection. They also occasionally dressed as police officers as a means to fool their victims. To control their victims, they used firearms and physical force, restrained them with handcuffs, zip ties, electrical cords, and shoelaces, and even went so far as to waterboard and pour boiling water on their victims’ genitals.
In May 2016, a jury found Hartley guilty of attempted armed robbery and carjacking when he robbed and shot a man delivering pharmaceutical products to a pharmacy on Ridge Avenue in 2012. In that case, Hartley was sentenced to 270 months in prison. In April 2017, a second jury found Hartley guilty of an armed home invasion robbery, carjacking, kidnapping, and related firearms offenses. For those additional crimes, Hartley was sentenced to life imprisonment, plus an additional 75 years, which run consecutively to one another and consecutively to the sentence in the earlier case.
“Robert Hartley is a menace to society who richly deserves to spend the rest of his life in a jail cell,” said U.S. Attorney McSwain. “The sentence handed down today reflects the seriousness of his crimes and our steadfast commitment to rid the streets of people who resort to extreme violence, intimidation, and even torture to make money. This case is an excellent example of why violent crime is a priority for my Office and the Department of Justice.”
“A key component of ATF’s mission is to combat and reduce violent crime. The sentence that was handed down today is another victory in the battle against violent crime for ATF, our law enforcement partners, and more importantly, the citizens of Philadelphia,” said ATF Special Agent in Charge Donald Robinson. “Justice was served for all of the victims who can now feel safe knowing Robert Hartley will spend the rest of his life behind bars. We appreciate the cooperation of our federal, state, and local partners to bring this case to a successful conclusion.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Bureau of Alcohol, Tobacco, and Firearms, the Philadelphia Police Department and various other local police departments throughout the Eastern District of Pennsylvania and the District of New Jersey. It is being prosecuted by Assistant United States Attorneys Salvatore L. Astolfi and Jeanine Linehan.
Paxton Man Sentenced to 10 Years in Prison for Receipt, Possession of Child PornographyRead the Press Release
URBANA, Ill. – Chief U.S. District Judge James E. Shadid today sentenced Kenneth W. Slater, 32, of the 1000 block of S. Washington St., Paxton, Ill., to 10 years in federal prison for receiving and possessing child pornography. In addition, Slater was ordered to pay restitution to two separate victims of the offense for a total amount of $6,000.
On July 17, 2018, Slater entered a plea of guilty to both offenses as charged in the indictment, which was returned by the grand jury in February 2018.
Slater was arrested on Jan. 16, 2018, in Paxton, after being charged in a criminal complaint with the same offenses. During a court appearance on Jan. 19, 2018, Slater was ordered detained in the custody of the U.S. Marshals Service.
Assistant U.S. Attorney Elly M. Peirson represented the government in the prosecution. The charges were investigated by the Federal Bureau of Investigation and the Bloomington Police Department.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Nicaraguan Man Charged with Illegal Use of a Social Security Number in Obtaining Louisiana Id CardRead the Press Release
NEW ORLEANS, LOUISIANA – ROLANDO ANTONIO JARQUIN-OROZCO, age 31, a citizen of Nicaragua was charged Friday, November 30, 2018 in a one-count indictment for illegal use of a Social Security number in violation of Title 42, United States Code, Section 408(a)(7)(B).
JARQUIN-OROZCO faces a maximum term of imprisonment of not more than five (5) years, a fine of $250,000.00, and a mandatory special assessment of $100.00 on the indictment. Additionally, JARQUIN-OROZCO is subject to a period of supervised release after imprisonment of up to three years. He also faces the possibility of deportation.
The indictment further alleged that JARQUIN-OROZCO applied for a Louisiana ID Card in Jefferson Parish. A check of the Social Security Administration records indicated that the social security number he used to secure the ID belonged to another individual.
U.S. Attorney Peter G. Strasser pointed out that an indictment is merely allegation. Each element of the offense must be proven beyond a reasonable doubt.
U.S. Attorney Peter G. Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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New York Woman Sentenced to 2½ Years for Conspiring to Distribute Heroin and CrackRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Melina Snead, a/k/a “Lady,” 25, of Rochester, New York, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 2½ years in prison and three years of supervised release for conspiring to distribute heroin and cocaine base, commonly known as “crack.” The defendant pled guilty on May 24, 2018.
According to court records, between June 2015 and March 2017, Snead conspired with others to acquire heroin and crack in Rochester and transport it to Central Maine for distribution. The defendant sold the drugs from several “trap houses” in Central Maine.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New York Man Admits Kidnapping, Interstate Domestic ViolenceRead the Press Release
NEWARK, N.J. – A New York man today admitted assaulting and kidnapping an individual with whom he had a romantic relationship, U.S. Attorney Craig Carpenito announced.
Rudolf Szoradi, 50, pleaded guilty before U.S. District Judge Jose J. Linares in Newark federal court to an information charging him with one count of kidnapping and interstate domestic violence.
According to documents filed in this case and statements made in court:
Szoradi and the victim previously had a romantic relationship. On Dec. 15, 2017, Szoradi assaulted the victim with a knife in the basement of a Newark residence. The victim suffered serious injuries. Szoradi then confined her in a vehicle against her will and drove her across state lines, eventually reaching North Carolina, where the victim was able to receive medical attention for her injuries.
According to the terms of the plea agreement, if accepted by the court, Szoradi will receive a sentence of between 87 to 108 months in prison, followed by five years of supervised release. Sentencing is scheduled for April 2, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea. He also thanked the Newark Police Division and Clayton, North Carolina, police department for their assistance.
The government is represented by Assistant U.S. Attorney Matt Feldman Nikic of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark