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Tuesday 23 October 2018
District Court Orders Tennessee Personal Care Products Manufacturer to Comply with Drug Safety RequirementsRead the Press Release
A federal court permanently enjoined a Memphis, Tennessee company from distributing misbranded drugs and drugs manufactured under insanitary conditions, the Department of Justice announced today.
In a complaint filed September 25, 2018, at the request of the U.S. Food and Drug Administration, the United States alleged that Keystone Laboratories, Inc., the company’s owner, Melinda Menke, and its operator, Elizabeth Jumet, violated the Federal Food, Drug, and Cosmetic Act by distributing hair care and skin care products that were not manufactured, processed, packaged, or held subject to current good manufacturing practices for drugs. The complaint alleged that FDA inspections of Keystone’s facilities and products revealed numerous problems, including an instance in which the company released a batch of hair product despite test results that suggested contamination by the potentially harmful bacteria Staphylococcus aureus (S. aureus). The defendants agreed to be bound by a consent decree filed with the complaint in U.S. District Court for the Western District of Tennessee.
“The Department of Justice is committed to ensuring that manufacturers and sellers of over-the-counter drugs follow safety laws that protect consumers,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “We will continue to work with the FDA to ensure that over-the-counter drugs are manufactured under safe conditions and are properly labeled.”
“Ensuring that consumers are protected from adulterated and contaminated over-the-counter drugs and products is a concern in this district. We will continue to partner with the Department of Justice Civil Division and the FDA to pursue these cases in an effort to protect consumers,” said U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.
The consent decree entered by the court permanently enjoins the defendants from violating the Food, Drug, and Cosmetic Act. As part of the settlement, the defendants may not manufacture or distribute their over-the-counter drug products from any facility owned or operated by the defendants unless they comply with specific remedial measures set forth in the injunction. The order also provides safeguards in the event that the defendants contract with third parties to manufacture similar products.
Trial attorney Claude Scott of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Stuart J. Canale of the U.S. Attorney’s Office for the Western District of Tennessee represented the United States, along with the assistance of Associate Chief Counsel for Litigation Rosselle Oberstein of the FDA’s Office of the General Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Tennessee, visit its website at https: https://www.justice.gov/usao-wdtn.
Department of Justice and Department of Interior Team up for Major Expansion of Tribal Access to National Crime Information DatabasesRead the Press Release
OKLAHOMA CITY — The Department of Justice and the Department of the Interior announced a dramatic expansion of the federal government’s key program that provides tribes with access to national crime information databases, the Justice Department’s Tribal Access Program for National Crime Information (TAP). By the end of 2019, the Justice Department will expand the number of TAP participating tribes by more than 50 percent—from 47 tribes to 72.
Two of the new participating tribes are in the Western District of Oklahoma: the Absentee Shawnee Tribe and the Cheyenne and Arapaho Tribes.
Governor Edwina Butler-Wolfe said: "The Absentee Shawnee Tribe is excited about our recent Tribal Access Program Grant. The Tribal Access Program will improve public safety, assist in identifying fugitives from justice, and aid with child protective services and the Tribe’s Sex Offender Registration within our Tribal jurisdiction through the access and exchange of critical data."
"The Cheyenne and Arapaho Tribes are extremely pleased we have been selected to participate in the Tribal Access Program," said Governor Reggie Wassana. "Throughout Indian Country, tribal justice systems are weighed down by the constant effects of criminal activity. TAP will give the Tribes the ability to access and exchange data with national crime information systems. More than ten tribal programs from our domestic violence program to child protection services will benefit from this grant. I want to recognize the U.S. Department of Justice, Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS), and the Office for Victims of Crime (OVC) for their commitment to ensure Tribes have access to the tools needed to improve public safety."
"For far too long, a lack of access to federal criminal databases has hurt tribal law enforcement—preventing them from doing their jobs and keeping their communities safe," said Deputy Attorney General Rod Rosenstein. "With the Tribal Access Program, participating tribes will be able to protect victims of domestic violence, register sex offenders, keep guns out of dangerous hands, and help locate missing people. This milestone demonstrates our deep commitment to strengthening public safety in Indian country."
"I am proud to authorize the funding for the expansion of the Tribal Access Program to the Bureau of Indian Affairs to make the future of justice in Indian Country stronger," said Assistant Secretary for Indian Affairs Tara Sweeney at the 75th National Congress of American Indians Convention on October 22. "The Bureau of Indian Affairs is proud to grant greater access to these important databases at more locations throughout Indian Country. Performing background checks is a critical step in protecting our precious Native children in foster care, and tribal communities served by the BIA will benefit from access to this extensive public safety tool."
"Access to information is vital to effective law enforcement," said Trent Shores, U.S. Attorney for the Northern District of Oklahoma and the Chairman of the Attorney General’s Advisory Subcommittee on Native American Issues. "The Tribal Access Program will enhance and improve the ability of tribal law enforcement officers to serve their communities. The Native American Issues Subcommittee is proud to support the continued expansion of this tool throughout Indian Country."
The Native American Issues Subcommittee (NAIS) is comprised of United States Attorneys with Indian Country in their federal districts. They advise the Attorney General regarding the development and implementation of policies pertaining to justice in Indian Country. The NAIS identified ‘increased law enforcement resources’ as one of four priority areas to improve justice services in Indian Country. Support for and increased dissemination of the TAP was unanimously supported by the U.S. Attorneys at a recent NAIS meeting in Indian Country in Tulsa, Oklahoma.
"We at the BIA-OJS look forward to having direct access to these vital resources," said Deputy BIA Director for Office of Justice Services Charles Addington. "We have waited years for the opportunity to streamline how we access these critical databases and the funding authorized by AS-IA Sweeney will allow our law enforcement officers the ability to receive the information they need to do their jobs effectively and keep them safe."
TAP, offered in two versions, TAP-FULL and TAP-LIGHT, allows tribes to serve and protect their communities more effectively by fostering the exchange of critical data through several national databases through the FBI’s Criminal Justice Information Systems (CJIS) network, including the National Crime Information Center (NCIC), Next Generation Identification (NGI), National Data Exchange (N-DEx), National Instant Criminal Background Check System (NICS), Law Enforcement Enterprise Portal (LEEP) as well as other national systems such as the International Justice and Public Safety Network (Nlets). TAP enhances tribal efforts to register sex offenders pursuant to the Sex Offender Registration and Notification Act (SORNA); have orders of protection enforced nationwide; protect children; keep firearms away from persons who are disqualified from receiving them; improve the safety of public housing, and allow tribes to enter their arrests and convictions into national databases.
TAP-FULL consists of a kiosk workstation that provide access to national systems and is capable of processing finger and palm prints, as well as taking mugshots and submitting records to national databases. TAP-LIGHT is software for criminal agencies that include police departments, prosecutors, criminal courts, jails, and probation departments. Both versions provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purpose. TAP is currently available to 47 tribes nationwide with over 220 tribal criminal justice and civil agencies participating.
For more information on TAP, including a list and map of present TAP-FULL and TAP-LIGHT tribes, visit www.justice.gov/tribal/tribal-access-program-tap. For more information about the Justice Department’s work on tribal justice and public safety issues, visit www.justice.gov/tribal.
Department of Justice and Department of Interior Team up for Major Expansion of Tribal Access to National Crime Information DatabasesRead the Press Release
ARIZONA – First Assistant United States Attorney Elizabeth A. Strange joined the Department of Justice and the Department of the Interior in announcing a dramatic expansion of the federal government’s key program that provides tribes with access to national crime information databases, the Justice Department’s Tribal Access Program for National Crime Information (TAP). The expansion includes the following tribes in Arizona:
- Fort McDowell Yavapai Nation
- Hopi Tribe
- Salt River Pima-Maricopa Indian Community of the Salt River Reservation
By the end of 2019, the Justice Department will expand the number of tribes participating in TAP by more than 50 percent, from 47 tribes to 72. Further, by 2021, the Interior Department’s Bureau of Indian Affairs Office of Justice Services (BIA-OJS) will expand TAP to all 28 tribes where it delivers direct law enforcement services. The BIA Division of Human Services will also add two tribal social service locations in New Mexico and Oklahoma in 2019.
TAP provides federally-recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purposes. This allows tribes to more effectively serve and protect their communities by ensuring the exchange of critical data. TAP is currently deployed to 47 tribes nationwide with over 220 tribal criminal justice and civil agencies participating. The program provides integrated workstations and/or software as well as enhanced training and assistance to enable tribes to access and contribute to national crime information databases.
“The U.S. Attorney’s Office is deeply committed to strengthening public safety in Indian Country,” stated First Assistant United States Attorney Elizabeth A. Strange. “Through the expansion of the TAP program, participating tribes can use the shared database information to make their communities safer by protecting victims of domestic violence, registering sex offenders, keeping guns out of the hands of known criminals, and helping to locate missing persons. In addition, law enforcement officers beyond the tribes’ borders -- throughout Arizona -- will benefit from the ability to access information entered by our tribal partners. We hope that all of our federally-recognized tribes will be able to participate in TAP in the near future as the program continues to expand.”
“The Fort McDowell Nation is pleased to be a part of the Tribal Access Program (TAP),” said Fort McDowell Nation Vice President Paul Russell. “TAP will allow Fort McDowell to protect and to better serve the public safety needs of our Nation. It will provide the Nation’s Police Department, Prosecutor’s Office, Tribal Courts (Pretrial Services and Probation) and Family Services (CPS and Foster Families) the ability to retrieve appropriate criminal justice information in a timely manner. For instance, with TAP, our Nation’s Police Department will be able to directly enter sex offender information into the National Sex Offender Registry (NSOR). In addition, the Nation’s Tribal Court can now enter its own orders of protection and dispositions into the national database which furthers public safety for victims, the Nation and the general population off the Nation.”
"The Hopi Tribe is grateful for the opportunity to connect with law enforcement resources through the 2019 Tribal Access Program," said Hopi Tribe Chairman Timothy Nuvangyaoma. "TAP will enhance safety for our Hopi People and will increase necessary coordination and communication among law enforcement jurisdictions."
“We are pleased to be selected as a recipient for the 2019 Tribal Access Program (TAP),” said Salt River President Delbert W. Ray, Sr. “The TAP program will allow the Salt River Pima-Maricopa Indian Community to effectively serve and protect our Community by allowing the exchange of critical data across Criminal Justice Information systems and other national crime information systems. This will be a great resource that will enhance the Salt River Law Enforcement agency.”
“Access to information is vital to effective law enforcement,” said Trent Shores, U.S. Attorney for the Northern District of Oklahoma and the Chairman of the Attorney General’s Advisory Subcommittee on Native American Issues. “The Tribal Access Program will enhance and improve the ability of tribal law enforcement officers to serve their communities. The Native American Issues Subcommittee is proud to support the continued expansion of this tool throughout Indian Country.”
The Native American Issues Subcommittee (NAIS) is comprised of United States Attorneys with Indian Country in their federal districts; First Assistant U.S. Attorney Strange is an active member of the NAIS. They advise the Attorney General regarding the development and implementation of policies pertaining to justice in Indian Country. The NAIS identified ‘increased law enforcement resources’ as one of four priority areas to improve justice services in Indian Country. Support for and increased dissemination of the TAP was unanimously supported by the U.S. Attorneys at a recent NAIS meeting in Indian Country in Tulsa, Oklahoma.
TAP enhances tribal efforts to register sex offenders pursuant to the Sex Offender Registration and Notification Act (SORNA); have orders of protection enforced nationwide; protect children; keep firearms away from persons who are disqualified from receiving them; improve the safety of public housing, and allow tribes to enter their arrests and convictions into national databases.
TAP supports tribes in analyzing their needs for national crime information and includes appropriate solutions, including a-state-of-the-art biometric/biographic kiosk workstation with capabilities to process finger and palm prints, take mugshots and submit records to national databases. This includes the ability to access several national databases through the FBI’s Criminal Justice Information Systems (CJIS) network, including the National Crime Information Center (NCIC), Next Generation Identification (NGI), National Data Exchange (N-DEx), National Instant Criminal Background Check System (NICS), Law Enforcement Enterprise Portal (LEEP) as well as other national systems such as the International Justice and Public Safety Network (Nlets).
TAP, which is managed by the Justice Department’s Chief Information Officer with assistance from the Office of Tribal Justice, provides specialized training and assistance for participating tribes, including computer-based training and on-site instruction, as well as a 24x7 Help Desk. Participating tribes in TAP-FULL receive a kiosk workstation that provide access to national systems as well as training to support whole-of-government needs. Participating tribes in TAP-LIGHT receive software for criminal agencies that include police departments, prosecutors, criminal courts, jails, and probation departments.
The following tribes have been selected for the next phase of TAP FULL:
Absentee-Shawnee Tribe of Indians of Oklahoma
Blackfeet Tribe of the Blackfeet Indian Reservation of Montana
Confederated Tribes of the Chehalis Reservation (Washington)
Cheyenne and Arapahoe Tribes, Oklahoma
Cheyenne River Sioux Tribe of the Cheyenne River Reservation, South Dakota
Eastern Shoshone Tribe of the Wind River Reservation, Wyoming
Fort McDowell Yavapai Nation, Arizona
Hopi Tribe of Arizona
Lower Elwha Tribal Community (Washington)
Northern Arapahoe Tribe of the Wind River Reservation, Wyoming
Penobscot Nation (Maine)
Quinault Indian Nation (Washington)
Rosebud Sioux Tribe of the Rosebud Indian Reservation, South Dakota
Salt River Pima-Maricopa Indian Community of the Salt River Reservation, Arizona
Sault Ste. Marie Tribe of Chippewa Indians, Michigan
The Seminole Nation of Oklahoma
Swinomish Indian Tribal Community (Washington)
Turtle Mountain Band of Chippewa Indians of North Dakota
The following tribes have been selected for the next phase of TAP LIGHT:
Bishop Paiute Tribe (California)
La Jolla Band of Luiseno Indians, California
Lac Vieux Desert Band of Lake Superior Chippewa Indians of Michigan
Mashpee Wampanoag Tribe (Massachusetts)
Morongo Band of Mission Indians, California
Port Gamble S'Klallam Tribe (Washington)
San Pasqual Band of the Diegueno Mission Indians of California
For the tribes selected by the Department of Justice, TAP is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS) and the Office for Victims of Crime (OVC). For the tribes selected by the Department of Interior, TAP is funded by BIA-OJS and BIA Division of Human Services.
For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal
RELEASE NUMBER: 2018-132_ Tribal Access Program (TAP)
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Defendant in Massive Drug Trafficking Conspiracy ConvictedRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Malik Martin a/k/a “Leek,” has been convicted by a jury of conspiracy to distribute 1,000 kilograms or more of marijuana and of one count of conspiracy to commit money laundering. The jury trial spanned four weeks and took place before United States Senior District Judge R. Barclay Surrick.
Martin also was acquitted of a second count of conspiracy to commit money laundering. The jury was unable to reach a verdict against co-defendant Alan Womack, who was charged in a second superseding indictment with conspiracy to distribute 1,000 kilograms or more of marijuana. Judge Surrick declared a mistrial as to co-defendant Womack.
Martin and his co-conspirators were part of a long-running drug-trafficking organization (“DTO”) which distributed 1,000 kilograms or more of marijuana, and then laundered the drug proceeds. The DTO used a number of tractor-trailer drivers to transport bulk quantities of marijuana from Arizona, California, and Texas to the East Coast to ultimately be distributed in the greater Philadelphia area. Martin worked closely with the head of the DTO to bring money out to the West Coast, coordinate the purchase of the marijuana on the West Coast, and load the delivery of marijuana to the East Coast.
“Martin and his co-conspirators set up a decade-long drug trafficking operation that criss-crossed the United States, leaving a path of destruction in its tracks,” said U.S. Attorney McSwain. “Today’s victory demonstrates my Office’s steadfast commitment to taking down criminal organizations like Martin’s and cutting off the supply of illegal drugs into our communities.”
“This sprawling drug trafficking enterprise operated for many years, across thousands and thousands of miles,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “As massive amounts of marijuana and money moved across the country, Malik Martin and his co-conspirators eagerly racked up the ill-gotten gains. The FBI will continue to investigate and disrupt drug trafficking operations, as we work to make our communities safer.”
This case was investigated by the FBI and is being prosecuted by Assistant United States Attorneys Daniel Velez and Randall Hsia.
Department of Justice and Department of Interior Team up for Major Expansion of Tribal Access to National Crime Information DatabasesRead the Press Release
WASHINGTON: United States Attorney Halsey B. Frank joined the Department of Justice (DOJ) and the Department of the Interior (DOI) in announcing a dramatic expansion of the federal government’s key program that provides tribes with access to national crime information databases, DOJ’s Tribal Access Program for National Crime Information (TAP). The expansion includes the Penobscot Nation.
“I am pleased that the Penobscot Nation will have access to the FBI’s national crime databases through TAP,” said U.S. Attorney Frank. “The ability to access and exchange crime information is extremely valuable. It will enable tribal government to better investigate criminal activity, police their community, and keep their community safe.”
“Access to TAP-FULL, will equip the Penobscot Nation Law Enforcement Program with the means to effectively collaborate with all local and state law enforcement agencies, by informing them of persons that are needing protection orders served upon them, getting an accurate account to other agencies of the persons that have been arrested for criminal offenses with the tribe’s jurisdiction and that are out on bail with restrictions and those persons adjudicated and have certain probation conditions they have to abide by,” said Department of Public Safety Chief Robert Bryant. “TAP will also allow us to better protect victims of domestic violence by having orders of abuse or harassment entered into National Crime Information Center (NCIC) in a timely manner. The result is a safer community.”
By the end of 2019, DOJ will expand the number of TAP participating tribes by more than 50 percent—from 47 tribes to 72. DOI will fund the instillation of TAP Kiosks at three locations where the BIA-Office of Indian Services (BIA-OIS) deliver direct service social services by the end of 2019 and DOI aims to expand TAP access at all 28 BIA-Office of Justice Services (BIA-OJS) operated law enforcement agencies and detention service centers. These BIA locations will provide some degree of access to TAP for services delivered to more than 50 tribal communities that currently do not have any direct access.
“Access to information is vital to effective law enforcement,” said Trent Shores, U.S. Attorney for the Northern District of Oklahoma and the Chairman of the Attorney General’s Native American Issues Subcommittee (NAIS). “TAP will enhance and improve the ability of tribal law enforcement officers to serve their communities. The Native American Issues Subcommittee is proud to support the continued expansion of this tool throughout Indian Country.”
The NAIS is comprised of U.S. Attorneys with Indian Country in their federal districts. They advise the Attorney General regarding the development and implementation of policies pertaining to justice in Indian Country. The NAIS identified “increased law enforcement resources” as one of four priority areas to improve justice services in Indian Country. Support for and increased dissemination of the TAP was unanimously supported by the U.S. Attorneys at a recent NAIS meeting in Indian Country in Tulsa, Oklahoma.
TAP, offered in two versions, TAP-FULL and TAP-LIGHT, allows tribes to more effectively serve and protect their communities by fostering the exchange of critical data through several national databases through the FBI’s Criminal Justice Information Systems network, including the NCIC, Next Generation Identification, National Data Exchange, National Instant Criminal Background Check System, Law Enforcement Enterprise Portal as well as other national systems such as the International Justice and Public Safety Network. TAP enhances tribal efforts to register sex offenders pursuant to the Sex Offender Registration and Notification Act; have orders of protection enforced nationwide; protect children; keep firearms away from persons who are disqualified from receiving them; improve the safety of public housing, and allow tribes to enter their arrests and convictions into national databases.
TAP-FULL consists of a kiosk workstation that provide access to national systems and is capable of processing finger and palm prints, as well as taking mugshots and submitting records to national databases. TAP-LIGHT is software for criminal agencies that include police departments, prosecutors, criminal courts, jails, and probation departments. Both versions provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purpose. TAP is currently available to 47 tribes nationwide with over 220 tribal criminal justice and civil agencies participating.
For more information on TAP, including a list and map of present TAP-FULL and TAP-LIGHT tribes, visit www.justice.gov/tribal/tribal-access-program-tap
For more information about the DOJ’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal.
DEA and partners hold National Prescription Drug Take Back Day on October 27, 2018Read the Press Release
DEA aims to dispose of 10 million pounds of unused pills
DETROIT – After collecting a total of more than 9.9 million pounds (nearly 5,000 tons) of expired, unused and unwanted prescription medications during 15 previous events over the past eight years, the Drug Enforcement Administration expects to reach a total of 10 million pounds collected following the upcoming fall 2018 Take back event. DEA and its national, tribal and community partners will hold the 16th National Prescription Drug Take Back Day across the country on Saturday, October 27. The service is free and anonymous.
This weekend, more than 5,400 collection sites manned by more than 4,400 partner law enforcement agencies will be open 10 a.m. to 2 p.m. local time. The public can find a nearby collection site at www.DEATakeBack.com or by calling 800-882-9539. (DEA cannot accept liquids, needles or sharps.)
"We know that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet," said Acting Administrator Uttam Dhillon. "If we reduce the availability of those unused or expired medications through proper disposal, the fewer drugs there are to be misused, and fewer people will be at risk for abuse, addiction, overdose, and even death."
The National Prescription Drug Take Back Day Initiative addresses a critical public safety and public health issue. Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Because the Environmental Protection Agency and the Food and Drug Administration have advised the public that flushing their prescription drugs down the toilet or throwing them in the trash pose potential safety and health hazards, DEA launched its prescription drug take back program to encourage the safe disposal of medications.
National Take Back Day has received robust public support since its inception in 2010. Last April, the public turned in 456 tons (912,305 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and nearly 4,700 of its local and tribal partners.
END
Cyber criminal sentenced for hacking universitiesRead the Press Release
ATLANTA – Olayinka Olaniyi, a citizen of Nigeria, was sentenced on charges of conspiracy to commit wire fraud, computer fraud and aggravated identity theft. Olaniyi was convicted by a federal jury on August 9, 2018, after a three-day trial. Co-defendant, Damilola Solomon Ibiwoye, pleaded guilty to similar charges and was sentenced on January 31, 2018.
“These defendants’ attempted theft of millions of dollars by tricking unsuspecting victims into providing personal information, subsequently leading to the infiltration of other computer systems,” said U.S. Attorney Byung J. “BJay” Pak. “While cybercrime has no borders, those who operate under the cloak of anonymity that the Internet provides will not be shielded from extradition and prosecution.”
“This sentence is the direct result of the hard work of FBI investigators and federal prosecutors working with their international partners, proving once again that cybercriminals cannot hide behind geographic borders anymore,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We are determined to protect our citizens and our institutions no matter how far the investigation reaches.”
“The scheme that these perpetrators attempted against college and university employees in our state is unfortunately all too common and underscores the ever-increasing need to remain vigilant in cybersecurity efforts,” said Attorney General Chris Carr. “We will continue working with our local, state and federal partners to investigate and prosecute those who seek to steal from Georgians and educate our citizens on how to avoid falling victim to deceptive practices.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Olaniyi and Ibiwoye were behind several “phishing scams” that targeted colleges and universities in the United States, including the Georgia Institute of Technology (“Georgia Tech”) and the University of Virginia. While both are Nigerian citizens, they committed their crimes while living in Kuala Lumpur, Malaysia, and were extradited to the United States to face these charges.
A “phishing scam” is the act of sending fraudulent emails that appear to come from legitimate enterprises for the purpose of tricking the recipients into providing personal information, including usernames and passwords. Olaniyi and Ibiwoye directed phishing emails to college and university employees. Once they had possession of employee logins and passwords, they were able to steal payroll deposits by changing the bank account into which the payroll was deposited. Also, while logged into the university system through the stolen logins and passwords, these defendants were able to gain access to employee W2 forms, which they used to file fraudulent tax returns. The attempted theft was over $6 million.
The stolen funds were routed into U.S. bank accounts, and the evidence showed that access to these bank accounts was acquired through the use of romance scams, where fraudsters pose on dating sites and apps as potential partners to gain the trust of their victim. At some point, the fraudsters made requests to deposit money into their victims’ accounts and claimed to need all of the account information, including their account numbers, routing numbers, passwords, and answers to security questions. In this case, all of that information was then used to funnel the proceeds of theft through those accounts and out of the country.
Olayinka Olaniyi, 34, of Nigeria was sentenced to five years, 11 months in prison, to be followed by three years of supervised release on October 22, 2018. Olaniyi was also ordered to pay restitution in the amount of $56,175.44.
Damilola Solomon Ibiwoye, 29, of Nigeria was sentenced to three years, three months in prison to be followed by three years of supervised release on January 31, 2018. He was also ordered to pay $56,175.44 in restitution.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Jeffrey A. Brown, Deputy Chief of the Complex Frauds Section, and Special Assistant U.S. Attorney Laura D. Pfister prosecuted the case.
Criminal Complaint Charges Three City of Miami Police Department Officers with Federal Drug Trafficking ChargesRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge of the FBI’s Miami Field Office, and Jorge R. Colina, Chief of the City of Miami Police Department (MPD), today announced the unsealing of a criminal complaint charging City of Miami Police Officers Schonton Harris, Kelvin Harris, and James Archibald for their involvement in a drug trafficking conspiracy.
Schonton Harris, Kelvin Harris and Archibald were charged with conspiracy to possess cocaine with the intent to distribute, in violation of Title 21, United States Code, Section 846; attempting to possess cocaine with the intent to distribute, in violation of Title 21, United States Code, Section 846 and Title 18, United states Code, Section 2; and using and carrying a firearm during and in relation to a drug trafficking crime, in violation of Title 18, United States Code, Sections 924(c) and 2. If convicted of the conspiracy and attempted narcotics possession with intent to distribute charges, the defendants each face life in prison and a mandatory-minimum sentence of 10 years in prison. If convicted of the armed drug trafficking offense, each defendant faces a mandatory consecutive sentence of 5 years in prison.
The criminal complaint alleges that Officers Schonton Harris, Kelvin Harris and Archibald collectively provided protection to the transportation and distribution of purported cocaine, opioids and drug proceeds, in exchange for cash (bribe) payments. The Officers believed that they were protecting the activities of money launders and narcotics traffickers, when in fact they were engaged in a criminal enterprise with undercover federal officers.
The complaint alleges Officer Schonton Harris initially provided protection for a courier who was purportedly collecting drug proceeds from pharmacies and clinics engaged in the illegal sale of opioids and then depositing the money into a bank. She also allegedly acted as a police protection escort for a purported shipment of 2,000 prescription opioid pills and multiple kilograms of cocaine, that were transported to a Miami-area hotel. The complaint further alleges that Officer Kelvin Harris later joined the protection scheme. Together, Officers Schonton Harris and Kelvin Harris provided police protection for a purported money launderer. They then allegedly escorted a multi-kilogram shipment of sham cocaine. The complaint alleges, in September 2018, Officer Archibald actively joined the drug trafficking conspiracy. Believing they were working with a high-level narcotics trafficker, the three officers allegedly provided police protection for a 40-kilogram delivery of sham cocaine. On a later date, the three officers allegedly transported 30-kilograms of sham cocaine from a Miami-area marina to Miami-area hotels. Rather than protecting the couriers, the officers are alleged to have personally taken possession of the sham cocaine.
The complaint also alleges that Officer Schonton Harris sold a City of Miami Police Department uniform and badge to an undercover officer, for $1,500.
At times during the protection details, the officers were armed and/or in uniform.
U.S. Attorney Fajardo Orshan said, “The charges announced today represent a united commitment, amongst federal and state partners, to combat corruption. No one wants corrupt officers in our police departments or on our streets. We will not allow those who abuse their positions of power, to tarnish the reputation of the City of Miami Police Department and the dedicated officers who proudly serve and protect our South Florida communities. The U.S. Attorney’s Office commends City of Miami Police Chief Jorge Colina for leading by example and encourages anyone with information regarding corruption to contact the FBI.”
“This investigation was initiated by the City of Miami Internal Affairs, then developed with the leadership of the FBI’s Miami Area Corruption Task Force,” said Denise Stemen, Assistant Special Agent in Charge, FBI Miami. “Chief Jorge Colina took decisive action to preserve the integrity of his department and the fine officers who serve Miami every day. I commend his actions and discretion throughout this investigation.”
“We are committed to protecting our communities and eliminating corruption,” stated MPD Chief Jorge Colina. “Once the City of Miami Police Department was made aware of the suspected criminal conduct, we immediately reached out to our federal partners to ensure that any officer who breaks the law faces appropriate consequences. We commend the concerned citizen who made the initial report to law enforcement and initiated this important investigation. We encourage anyone with information regarding suspected corruption to report their concerns directly to our police department or the FBI.”
A criminal complaint contains allegations and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commends the investigative efforts of the FBI, the FBI Miami Area Corruption Task Force and MPD in this matter. The case is being prosecuted by Assistant U.S. Attorney Harry Wallace.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Cottonwood Woman Sentenced to over 21 Years in Prison for Child Pornography Related ChargesRead the Press Release
PHOENIX – Yesterday, Sarah Melissa Cox, 41, of Cottonwood, Ariz., was sentenced by Senior U.S. District Judge Roslyn O. Silver to 262 months’ imprisonment, to be followed by lifetime supervised release. Cox had been convicted of three counts of receipt of child pornography, one count of noticing or advertising child pornography, and one count of distribution of child pornography at a jury trial in May.
Evidence at trial showed that Cox engaged in a conversation with Richard Hennis of Colorado from August 2015 until January 2016, using the Kik social media application. Cox and Hennis described in detail kidnapping, molesting, and assaulting children. Hennis sent numerous images of child pornography to Cox, including three images of an infant being sexually assaulted that Hennis had conspired to produce with a different woman. Cox provided Hennis with a link to additional child pornography.
“Cox not only viewed, described, and exchanged pictures and videos of horrendous acts against infants and young children, she also suggested kidnapping and sexually assaulting other children,” said First Assistant United States Attorney Elizabeth A. Strange. “Cox’s conduct is shocking and deserving of the lengthy prison sentence.”
“The lengthy sentence handed down in this case is instrumental in pursuing justice for the victims of this child predator’s heinous crimes,” said Scott Brown, special agent in charge of HSI Phoenix. “HSI will continue to aggressively pursue those who seek to abuse our most vulnerable population and continue our partnership with the U.S. Attorney’s office to ensure sexual predators are apprehended and prosecuted.”
The investigation in this case was conducted by Homeland Security Investigations (HSI). The prosecution was handled by Assistant U.S. Attorneys Robert Brooks and Christina Covault, District of Arizona, Phoenix.
CASE NUMBER: CR-16-08202-PCT-ROS
RELEASE NUMBER: 2018-134_Cox
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Contractor Sentenced to 21 Months in Prison for Stealing from Paterson Municipal Utilities Authority and Jersey City Childhood Development CentersRead the Press Release
NEWARK, N.J. – A Linden, New Jersey, man was sentenced today to 21 months in prison for conspiring with officials at the Paterson Municipal Utilities Authority (MUA) and the Jersey City Childhood Development Centers Inc. (JCCDC) to fraudulently obtain payments for services he never provided, U.S. Attorney Craig Carpenito announced.
Carnell Baskerville, 51, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him intentionally conspiring with a former commissioner with the Paterson MUA to commit extortion under color of official right and conspiring with Robert E. Mays, the former Executive Director of the JCCDC, to embezzle and obtain by fraud funds that were under the care and control of the JCCDC, an organization that received more than $10,000 in federal program benefits annually. Judge Linares imposed the sentence today in Newark federal court.According to documents filed in this case and statements made in court:
Baskerville was a self-employed contractor based in Linden who provided contracting services for both residential homes and commercial businesses. Around 2014, Baskerville became acquainted a conspirator who was then a commissioner with the since-dissolved Paterson MUA, which had been created to manage the hydroelectric plant on the Passaic River and care for certain surrounding properties.
Baskerville and the conspirator entered into an agreement whereby the conspirator, who exercised control over Paterson MUA finances, would approve payments from the Paterson MUA to Baskerville’s company for services rendered, even though both Baskerville and the conspirator knew that Baskerville had not and would not perform those services.
Between December 2014 and May 2015, the conspirator wrote a series of Paterson MUA checks totaling $146,500 to Baskerville’s company. Baskerville deposited these checks in his bank account and kicked back a significant percentage in cash to the conspirator to reward him for his official assistance in carrying out the scheme.
Baskerville entered into a similar scheme with Mays, the Executive Director of the JCCDC, which operated as a non-profit organization created to serve impoverished and disabled children in Jersey City. In February 2014, Baskerville and Mays entered into a purported contract for Baskerville to provide kitchen renovation work on behalf of JCCDC, knowing full well that Baskerville had not and would not perform those services.
In late February 2014, Mays issued a JCCDC check in the amount of $29,675 to Baskerville. Baskerville and Mays met at a check cashing business in Jersey City where they cashed the check and split the proceeds between them.
In addition to the prison term, Judge Linares sentenced Baskerville to three years of supervised release and ordered him to pay restitution of $176,175.Mays pleaded guilty to wire fraud on June 7, 2016 before U.S. District Judge Susan D. Wigenton. On July 31, 2017, he was sentenced to 18 months in prison and ordered to pay restitution in the amount of $257,418.20.
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.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.
Defense counsel: Arthur Abrams Esq., Jersey City
Chairman of the Rochester Housing Authority Charged with Lying to the FBIRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that George H. Moses, 50, of Rochester, NY, was charged by criminal complaint with making false statements to Special Agents of the FBI. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the complaint, the defendant is the Chairman of the Board of Commissioners of the Rochester Housing Authority (RHA), which provides housing opportunities and services for the Rochester community and a board member of the Rochester Housing Charities (RHC). The RHA has an annual contract with the United States Department of Housing and Urban Development from which it receives millions of dollars.
As alleged in the criminal complaint, on March 25, 2015, defendant Moses, as Chairperson of the Board of RHA, caused that Board: (a) to appoint him as one of the three new board members of the RHC, and (b) to approve a loan by the RHA to the RHC in the amount of $300,000.
On July 7, 2015, the RHC entered into an $87,500 one year contract with Capital Connection Partners LLC (CCP) for various services including: (a) advocating at the local, state and federal level of government for policy and legislation, reviewing best practices, and issuing presentations to elected officials; and (b) finding self-sufficient resources to include creating entrepreneurial opportunities and workforce development, developing revenue streams for residents, and applying for federal home loan bank grants.
The following day, on July 8, 2105, Adam McFadden, on behalf of his company, Caesar Development LLC, executed a contract with CCP entitled the Pass Through Funding and Services Agreement, which provided that CCP would pass through 75% of the funds it received from the RHC to Caesar Development LLC.
On August 3, 2015, the RHA on behalf of the RHC paid CCP $43,750, which represented the first installment payment under the terms of the RHC and CCP Contract. Thereafter, on August 8, 2015, CCP paid $32,812.50 to Caesar Development LLC, which represented 75% of the funds CCP had just received from the RHA.
Subsequently, on December 23, 2015, the RHC paid $43,750 to CCP, which represented the second installment payment under the terms of the RHC and CCP Contract. On the following day, December 24, 2015, CCP paid $32,812.50 to Caesar Development LLC, which represented 75% of the funds CCP had just received from the RHC.
In the course of an investigation into these contracts between RHC and CCP and between CCP and Caesar Development LLC, Special Agents of the FBI had occasion to interview defendant Moses regarding his knowledge of those contracts and payment of funds pursuant to them.
As alleged in the criminal complaint, during the course of those interviews Moses made the following materially false statements to the FBI:
• When asked how RHC learned of CCP, defendant Moses falsely stated that he could not recall specifically who brought CCP to the attention of the RHC, when in truth and in fact, defendant Moses knew that McFadden had brought CCP to his attention and to the attention of the RHC.
• When asked whether he knew if CCP had any subcontractors doing work under the RHC and CCP Contract, Moses stated that he was unaware of any sub-contractors that CCP utilized to execute the RHC and CCP Contract, when in truth and in fact, defendant Moses knew that McFadden and his company, Caesar Development LLC were allegedly performing work on behalf of CCP in connection with CCP’s contract with RHC.
• When told that Adam McFadden and his company received money from the RHC and CCP Contract, defendant Moses stated that he was surprised that McFadden and Caesar Development LLC received such money, when in truth and in fact, defendant Moses knew that McFadden and Caesar Development LLC, had received such money.
• When discussing a meeting held between CCP and the boards of the RHA and RHC on December 11, 2015, defendant Moses stated that he was surprised that McFadden was also at the meeting, when in truth and in fact, defendant Moses knew McFadden would be in attendance at such meeting.
The defendant made an initial appearance before U.S Magistrate Judge Payson and was released.The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #Canton man sentenced to more than eight years in prison for child pornography crimesRead the Press Release
A Canton man was sentenced to more than eight years in prison for child pornography crimes.
Marshall Belden, Jr., 70, previously pleaded guilty to receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct. Belden was sentenced to 103 months in federal prison.
Belden on Oct. 24, 2016 knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. On Jan. 26, 2017, Belden possessed a computer and an external hard drive, each of which contained child pornography, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the Canton office of the Federal Bureau of Investigation and the Canton Police Department.
Canadian Man Sentenced to 30 Days for Importing Illegally-Harvested Moose Antlers and HideRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Daniel F. Dyer, 57, of Plaster Rock, New Brunswick, Canada was sentenced today in U.S. District Court by Judge Jon D. Levy to 30 days in prison for importing illegally-taken moose antlers and a moose hide. He was also fined $5,000. He pled guilty on May 17, 2018.
According to court records, on September 28, 2013, Dyer, a Canadian outfitter and guide, arranged for Richard Eaton, a West Virginia resident, to unlawfully harvest a moose in New Brunswick using a license issued to a New Brunswick resident. Dyer later brought the hide and antlers of the moose through Maine. Dyer delivered the hide to a taxidermist in Pennsylvania and the antlers to Eaton in West Virginia. In 2014, Eaton was convicted in federal court of receiving the illegally-taken moose.
In imposing the sentence, Judge Levy found that Dyer had obstructed justice by instructing Eaton to falsely claim that another Canadian guide had shot the moose and said the cover-up was as bad as, or worse than, the crime itself.
The investigation was conducted by the U.S. Fish and Wildlife Service and the Wildlife Enforcement Division of Environment Canada (New Brunswick).
Brooklyn Resident Sentenced to Prison for Defrauding the IRS and Stealing Government FundsRead the Press Release
A Brooklyn, New York, man was sentenced to 48 months in prison for conspiring to defraud the government and theft of public funds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to documents filed with the court, Akim Martin, also known as Akim Davis, conspired with others to file fraudulent tax returns for companies and individual taxpayers. As part of the scheme, from March 2009 through March 2013, Martin and his co-conspirators filed false tax returns in the names of businesses they purportedly owned and operated, claiming phony deductions for wages paid to employees that purportedly worked for the fake companies. Martin negotiated fraudulently obtained federal refund checks and spent the money on his personal expenses. Martin’s conduct resulted in a tax loss of over $550,000.
In addition to the term of imprisonment imposed, U.S. District Judge Carol Bagley Amon ordered Martin to serve 3 years of supervised release, forfeit $82,600, and to pay restitution of $544,325 to the IRS.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Jason Scheff and Ann M. Cherry of the Tax Division, who prosecuted the case.
Bridgeport Woman Pleads Guilty to Charges Stemming from Medicaid Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NIKKITA CHESNEY, 45, of Bridgeport, waived her right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of health care fraud and one count of aggravated identity theft.
According to court documents and statements made in court, in May 2012, Chesney was employed by a health care provider that provided substance abuse treatment, including a detoxification program located in Bridgeport, when she was approached by Juliet Jacob and another individual. Jacob and the other individual operated two businesses, Transitional Development And Training (TDAT) and It Takes A Promise (ITAP), both located at 360 Fairfield Avenue in Bridgeport, which provided social and psychotherapy services. At the suggestion of the other individual, Chesney began to steal the personal identification information of Medicaid clients who were patients of her employer. The personal identifying information included the patients’ Medicaid identification number, Social Security Numbers and dates of birth. Chesney, Jacob and the other individual then used the stolen identity information to bill Medicaid for psychotherapy services purportedly provided by TDAT and ITAP, when the Medicaid clients had never received any such services from TDAT and ITAP.
In pleading guilty, Chesney admitted to stealing the identity information of more than 150 Medicaid clients from her employer, and that she and her co-conspirators successfully billed Medicaid for approximately half of those clients. Chesney further admitted that she and her co-conspirators also billed Medicaid for services to other clients that were never provided to those clients.
When she is sentenced, Chesney faces a maximum term of imprisonment of 10 years for health care fraud, and a mandatory consecutive sentence of two years for aggravated identity theft. She also has agreed to a restitution order of $1,364,698. A sentencing date has not been scheduled.
Chesney is released on a $25,000 bond pending sentencing.
On October 18, 2018, Jacob pleaded guilty to one count of health care fraud for her role in this scheme and a separate Medicaid fraud scheme. She faces a maximum term of imprisonment of 10 years and has agreed to a restitution order of $2,711,173.
Five other individuals have been charged and convicted of health care fraud offenses as a result of this ongoing investigation.
This matter is being prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
This case is being jointly investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office and the Federal Bureau of Investigation, with assistance from the Connecticut Attorney General’s Office. U.S. Attorney Durham thanked the Connecticut Department of Social Services for their role in identifying the fraudulent scheme and supporting the investigation and prosecution of the case.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Bloomfield Woman Sentenced to 92 Months for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Season Smith, 41, of Bloomfield, N.M., was sentenced this afternoon in federal court in Albuquerque, N.M., to 92 months in prison for her conviction on a methamphetamine trafficking charge. Smith will be on supervised release for four years after completing her prison sentence.
Smith and co-defendant Jeffrey Kline, 46, of Farmington, N.M., were charged in a two-count indictment filed on April 11, 2017, with conspiracy and possession of methamphetamine with intent to distribute. The indictment alleged that the defendants committed the offenses on Feb. 10, 2017, in San Juan County, N.M.
On May 30, 2018, Smith pled guilty to possessing methamphetamine with intent to distribute. In entering the guilty plea, Smith admitted that on Feb. 10, 2017, law enforcement officers stopped Kline and Smith while they were traveling from Arizona to New Mexico after they picked up methamphetamine from a source of supply. Smith further admitted that the officers seized approximately 511.7 grams of methamphetamine, 13.6 grams of heroin and drug paraphernalia when they executed a lawful search of her purse.
Kline previously pled guilty on July 26, 2017, to possession of methamphetamine with the intent to distribute, and was sentenced on April 9, 2018, to 120 months in prison followed by six years of supervised release.
The case was investigated by the Farmington office of the FBI and the Farmington Police Department. Assistant U.S. Attorney Eva Fontanez prosecuted the case as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target for federal prosecution violent or repeat offenders with the goal of making communities in New Mexico safer places for people to live and work.
Berkeley County man admits to illegal gun possessionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Christopher Wade Rebish, of Martinsburg, West Virginia, has admitted to having a machine gun, United States Attorney Bill Powell announced.
Rebish, age 30, pled guilty today to one count of “Illegal Possession of Machine Gun.” Rebish admitted to having a 5.7X28 mm caliber machine gun in Berkeley County in March 2017.
Rebish faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Battle Creek Man Known as "Rodeo Loco" Sentenced to Life Imprisonment for Sexually Exploiting Three High School GirlsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. District Judge Janet T. Neff sentenced Michael Clayton (a.k.a. "Rodeo Loco") to life in prison for sexually exploiting three girls, each about half Clayton’s age. The sentence follows a three-day trial, where a jury found Clayton guilty of being a felon in possession of firearms, conspiring to distribute cocaine, producing child pornography involving the three girls, and forcing one of them to engage in prostitution. Judge Neff remarked, "this was a horrendous, drug-fueled, weapon-heavy nightmare…. We really do need to protect the public from further crimes of this man."
The Battle Creek Police Department (BCPD) became aware of Clayton’s exploitation when they received a call on October 5, 2017, informing them Clayton was holding a 16-year-old girl against her will. Police reported to Clayton’s residence around 9:30 pm. Clayton initially told police there were no females at the house, but they found the 16-year-old girl in the unlit basement:
After interviewing the girl, police learned Clayton forced her into the basement to avoid police detection. She originally met Clayton a few weeks earlier, when he invited her to party, gave her cocaine, and expected her to have sex with him as payment for the cocaine. Clayton continued providing her cocaine and demanding sex, and he frequently recorded and saved videos of those sex acts. When BCPD and the Department of Homeland Security Investigations (HSI) executed search warrants for Claytons SnapChat account and iPhone, they uncovered over 20 videos of Clayton engaging in sex acts with the 16-year-old, as well as approximately 10 more videos involving a 15 and 17-year-old.
Those search warrants also revealed videos of Clayton with cocaine and guns:
Clayton used the proceeds of his illegal drug sales to promote a business he called Zombie Lifestyle. Police seized this car in association with the case:
The 16-year-old girl also told BCPD that Clayton and his co-defendant, Ramiro Hernandez, pushed her to have sex for money about a week before BCPD found her. Clayton and Hernandez arranged that sex date with someone she did not know, and Clayton kept all of the money. Hernandez pled guilty to sex trafficking the 16-year-old, testified against Clayton at trial, and received a 10-year sentence from Judge Neff.
"This sentencing highlights HSI's commitment to aggressively investigate human trafficking crimes by protecting victims and bringing traffickers to justice," said HSI Special Agent in Charge Steve Francis. "HSI will continue to work tirelessly with our law enforcement partners to dismantle these vile trafficking networks that prey on the vulnerable members of our community."
This case is part of the Project Safe Neighborhood initiative, and it was investigated by BCPD and HSI. Assistant U.S. Attorneys Davin M. Reust and Daniel Y. Mekaru prosecuted it.
END
Baldwin Woman Pleads Guilty to Creating Fentanyl Synthesis Lab in a Pittsburgh Motel 6Read the Press Release
PITTSBURGH, Pa – A resident of Baldwin, Pennsylvania, pleaded guilty in federal court to a narcotics charge, United States Attorney Scott W. Brady announced today.
Angel Grannison, age 32, waived indictment and pleaded guilty to a one count information charging her with maintaining a drug involved premises before United States Chief District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on May 11, 2018, Allegheny County Police detectives and a Special Agent from the Drug Enforcement Administration in Pittsburgh responded to a Motel 6 in Pittsburgh to a complaint of a strong chemical odor coming from one of the rooms. When they responded, investigators found Grannsion in the room. In the bathroom of the room, Grannsion had set up a fentanyl synthesis lab using commercial chemistry equipment and using chemicals from China. Investigators also recovered numerous packages with Chinese return addresses, a ‘Chemistry for Dummies’ book, and a handwriting journal with notes on fentanyl production.
Judge Conti scheduled sentencing for February 12, 2019. The law provides for a maximum sentence of up to 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior record, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Allegheny County Police, the Allegheny County Crime Lab, the Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation that led to the guilty plea in this case.
Amsterdam Man Sentenced on Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Kevin Safford, age 33, of Amsterdam, New York, was sentenced today to 24 months in prison, to be followed by 20 years of supervised release, for possessing child pornography and accessing a child pornography web site available only through an anonymous Internet network.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his plea, Safford admitted that in 2015, he accessed Playpen, an online forum through which registered users advertised, viewed, and distributed child pornography. Images and videos shared through the site were highly categorized according to victim age and gender, and type of sexual activity depicted.
Before the FBI seized the Playpen web site and shut it down, it was available only through an anonymous Internet network, which allowed users to access websites including Playpen without revealing their actual internet protocol address, geographic location, or other identifying information. Safford admitted that he logged into Playpen in order to access its child pornography content. He also admitted to possessing child pornography on an external hard drive.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Michael Barnett.
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/.
Alabama man sentenced for trying to have sex with underage girls in GeorgiaRead the Press Release
NEWNAN, Ga. - Christopher Bradley Braden, who on two separate occasions arranged to meet minor girls for sex, was sentenced to federal prison for enticing a minor to engage in illegal sexual activity.
“This defendant was brazen and persistent in seeking out young girls on the Internet,” said U.S. Attorney Byung J. “BJay” Pak. “On two separate occasions, Braden drove for hours hoping to have sex with young girls. Thanks to the vigilance of our law enforcement partners, Braden is being held accountable for his depraved conduct.”
“On two separate occasions Braden drove for hours hoping to have sex with young girls and most likely would have continued if he wasn’t arrested,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI Atlanta Metro Atlanta Child Exploitation Task Force (MATCH) is committed to remain vigilant, holding predators who pose a threat to our children, accountable.”
“Online sexual predators of children are a problem within our communities, said Marietta Police Chief Dan Flynn. “We appreciate the assistance of our federal partners and we are grateful to have intercepted the suspect before another child was harmed.”
According to U.S. Attorney Pak, the charges and other information presented in court: In November 2016, Braden started communicating with a young girl on the cell phone app “Meet24.” She told him that she was 13 years old. He immediately initiated sexual conversations with the minor, asking about her body development and her sexual experience. Braden even sent her a video of himself masturbating. He made arrangements to meet her for the purpose of having sex with her on December 1, 2016. When he showed up at the pre-arranged location in Marietta, he was met by two Marietta Police Department officers and arrested. The 13-year-old girl was actually an undercover police officer. He was later released on bond.
In May 2017 - only six months later - Braden met a 14-year-old girl on the same cell phone app. Again, he asked questions about her body development and her sexual experience. He even sent the girl a photo of his erect penis. Braden then made arrangements to meet her at a gas station in Bremen, Georgia. While traveling to Bremen, he sent the girl a message confirming that she was 14 years old. When Braden showed up near the gas station, he was pulled over and arrested by Bremen Police Department officers. Like before, the 14-year-old girl was actually an undercover police officer.
Braden, 40, of Jasper, Alabama, has been sentenced to 10 years, six months in prison, to be followed by 15 years of supervised release. Braden will also be required to register as a sex offender when he is released from prison. Braden was convicted on these charges on July 11, 2018, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation, Marietta Police Department, and Bremen Police Department.
Assistant U.S. States Attorney Paul R. Jones prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
A Former Alabama Resident Charged by Complaint with Attempting to Provide Material Support and Resources to a Foreign Terrorist OrganizationRead the Press Release
BIRMINGHAM – Alaa Mohd Abusaad was charged by complaint in Birmingham, Alabama with attempting to provide material support and resources to al Qaeda, a designated foreign terrorist organization, and aiding and abetting others, in violation of Title 18, United States Code, Sections 2339B and 2. Assistant Attorney General John Demers of the National Security Division, United States Attorney Jay E. Town of the Northern District of Alabama, and FBI Special Agent in Charge Johnnie Sharp Jr. of the Birmingham Division made the announcement today.
As set forth in the complaint, Abusaad instructed an FBI undercover employee (UCE) about how to send money to the mujahedeen—fighters engaged in jihad. Abusaad told the UCE that money “is always needed. You can’t have a war without weapons. You can’t prepare a soldier without equipment.” Abusaad also advised the UCE on how to send money without getting caught, such as by using fake names and addresses. Subsequently, Abusaad introduced the UCE to a financial facilitator who could route the UCE’s money to “brothers that work with aq (al Qaeda).”
If convicted, Abusaad faces a maximum penalty of 20 years’ imprisonment, a $250,000 fine, and up to a life term supervised release. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the assigned judge.
Investigation of the case was conducted by the FBI, including FBI offices in Birmingham, Alabama and Cleveland, and Toledo, Ohio. The prosecution is being handled by Assistant United States Attorneys Henry Cornelius and Manu Balachandran, and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section.
The charges contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
63 Year-Old Man Found Guilty of Transportation of A Minor with the Intent of Committing A Criminal Sexual ActRead the Press Release
SAN JUAN, P.R. – A jury found Wally Irizarry-Sisco guilty of one count of transportation of a minor with intent to engage in criminal sexual activity, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Judge Pedro A. Delgado-Hernández presided over the trial.
According to the evidence presented at trial, on March 2015, the defendant transported an 11-year-old female to a motel located in Juana Díaz, PR, with the intent to engage in sexually explicit conduct. Prior to this crime, Irizarry-Sisco was considered part of the family of the female victim.
“The jury found the defendant guilty of stealing this child’s innocence,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “The U.S. Attorney’s Office for the District of Puerto Rico will continue to prosecute sexual predators in order to protect the vulnerable victims of these crimes, our children.”
The case was prosecuted by Assistant United States Attorney Elba Gorbea and Special Assistant United States Attorney Cristina Caraballo. The defendant faces a mandatory minimum sentence of ten (10) years in prison and a maximum sentence of life. The sentencing is scheduled for January 25, 2019 at 10:30 am.
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Monday 22 October 2018
Wasilla Man Sentenced for Embezzling Approximately $80k from Labor Union in AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Wasilla man has been sentenced in federal court for embezzling approximately $80,000, over the course of nearly five years, from the Alaska Chapter of the Association of Civilian Technicians labor union.
Timothy Carrol Smith, 49, of Wasilla, was sentenced on Friday, Oct. 19, 2018, by Chief U.S. District Judge Timothy M. Burgess, to serve eight months in prison, followed by three years of supervised release. Smith was also ordered to pay $80,990.61 in restitution to ACT Chapter 84. Smith previously pleaded guilty in April 2018 to one count of making a false statement.
According to court documents, from 2007 to 2015, Smith held volunteer positions as secretary-treasurer and then president, for Alaska Chapter 84 of the Association of Civilian Technicians (ACT) at Joint Base Elmendorf-Richardson, a labor union representing approximately 70 dues-paying members who are Army National Guard civilian technicians throughout Alaska. During that time, Smith was responsible for managing the organization’s funds, including making travel arrangements, co-signing checks, paying bills, and meeting reporting requirements. Specifically, Smith was responsible for submitting annual financial disclosure reports to the Department of Labor Management and Standards, regarding how the organization’s funds were disbursed. Smith filed the required Form LM-3 on behalf of ACT Chapter 84 for the fiscal years ending 2011, 2012, 2013, and 2014.
Over the course of nearly five years, beginning in January 2011, Smith knowingly and willfully embezzled, stole, and illegally converted union funds to his own personal use in a total amount of $80,990.61, by conducting hundreds of unauthorized transactions. Smith then concealed his embezzlement by filing false reports to the Department of Labor by omitting the full amount of money he was receiving from the union.
For example, between January 2011 and September 2015, Smith used ACT Chapter 84 ATM card to make over 200 unauthorized cash withdrawals totaling $59,401.85. Between December 2010 and September 2015, Smith used an ACT Chapter 84 debit card to pay for over 300 unauthorized transactions totaling $20,988.76. In December 2013, Smith wrote a check payable to “cash” in the amount of $600 and cashed the check for an unauthorized expense. Smith used the stolen funds to pay personal expenses rather than ACT Chapter 84 expenses.
The U.S. Department of Labor, Office of Labor-Management Standards (OLMS) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorneys Aunnie Steward and Stephen Corso.
Virginia Beach Man Pleads Guilty to Four Bank RobberiesRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today to robbing three banks and one credit union.
According to court documents, from October 2017 through April 2018, Rian Michael Lopez, 30, robbed a Wells Fargo bank of $7,700, a Bank of America of $17,191, a BB&T bank of $4,076, and a Bayport Federal Credit Union of $6,800. At the last robbery the bank tellers secreted bait money into the money they gave to Lopez. Sometime later an alert Virginia Beach police officer caught Lopez casing another Wells Fargo bank for a potential robbery, and a search of his car and his home revealed clothing he had worn to the previous robberies and a large of amount of money that included the bait money from the Bayport Federal Credit Union robbery.
Lopez pleaded guilty to bank robbery and faces a maximum of 20 years in prison when sentenced on Jan. 25, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney William D. Muhr is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-135.
Vermont Awarded $1.2 Million Grant to Combat Human TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont, the Office of the Attorney General for the State of Vermont, the Vermont Department of Public Safety, and Vermont Center for Crime Victim Services announced today that the Vermont State Police (VSP) and the Vermont Center for Crime Victim Services (CCVS) have received a $1.2 million grant to combat human trafficking. This U.S. Department of Justice grant, which was awarded September 27, 2018, will allow VSP and CCVS to work collaboratively with the Vermont Human Trafficking Task Force (VT HTTF) to eradicate the exploitation of human beings for labor and commercial sex. With this grant, Vermont will initiate a statewide approach in the fight against this violation of basic human rights.
This grant is designed to support the delivery of comprehensive and specialized services for all victims of human trafficking and the investigation and prosecution of sex and labor trafficking cases. CCVS and VSP will develop and fund at least three new positions entirely dedicated to promoting victim-centered and trauma-informed investigations and comprehensive service delivery. The $1.2 million grant covers a three-year period beginning October 1, 2018.
Since 2013, under the leadership of the U.S. Attorney’s Office and the Vermont Attorney General’s Office, the VT HTTF has worked to facilitate a collaborative effort to eliminate and prevent the trafficking of persons within the State of Vermont; to pursue prosecution of perpetrators; and to protect, rehabilitate, and empower survivors of human trafficking. Human trafficking is a crime that causes deep and lasting trauma to even the strongest of its survivors.
Human trafficking is the act of compelling a person by force, fraud, or coercion to provide labor or a commercial sex act. Coercion may be subtle and insidious, and traffickers often threaten serious physical, psychological, and emotional harm. Human trafficking is a global, national, and local problem, and Vermont is not immune to this crisis. Drug addicts and other vulnerable people such as children, the disabled, and the undocumented are specifically targeted and recruited by traffickers for exploitation. Between 2014 and mid-2017, in the Chittenden County area alone, the HTTF’s data collection efforts estimate that there were over 250 suspected incidents of human trafficking.
Senator Patrick Leahy (D-VT) said, “I’m proud of the great work done by Vermont’s Human Trafficking Task Force to secure this highly competitive grant. As Vice Chairman of the Senate Appropriations Committee, I’ve worked to ensure these funds are available to Vermont and to other states, where some people may not be aware that human trafficking is a problem. Make no mistake, human trafficking can be found everywhere, particularly in areas hard hit by the illicit drug trade. With this grant, Vermont will have more tools to identify victims and target those who are profiting from this insidious trade.”
United States Attorney Christina E. Nolan remarked, “The HTTF and its partners are very grateful to Senator Leahy and the Appropriations Committee for ensuring the availability of funds to combat human trafficking, and we thank the Department of Justice for granting Vermont’s application for this important funding. Human trafficking is one of the most dangerous and least recognized crimes occurring in Vermont, and it is a particularly awful component of the opioid trade. Tragically, drug dealers routinely earn money by using brutal violence and other forms of coercion to compel addicts to perform sex acts. We are currently prosecuting some of the worst perpetrators of this horrific crime in federal court, and offenders should be on notice that they will be targets for federal prosecution in Vermont. As with the opioid crisis, it is only through a multidisciplinary, holistic approach uniting the enforcement, treatment, and prevention communities, that we can successfully combat the inhumanity and horror that is human trafficking. We have pursued this forward-leaning approach through the HTTF, and this grant will allow us to strengthen our partnerships and expand our efforts – particularly to areas outside Chittenden County – so that we can identify and rescue more victims, support more brave survivors, and bring strong consequences to the perpetrators of this grievous injustice.”
Vermont Attorney General T.J. Donovan stated, “This grant will make a difference for Vermont and for all Vermonters impacted by human trafficking. With these funds and dedicated professionals, we will now be able to direct our efforts in a very targeted way. We will be better able to protect victims and hold those who profit from human trafficking accountable.”
“This grant will allow us to make a giant step forward in our fight against this modern day slavery,” stated Commissioner of Public Safety Thomas D. Anderson. “Every year millions of men, women, and children are trafficked in countries around the world. Vermont is not immune from this crime. This grant will allow us to better protect victims and the public,” stated Anderson.
Vermont Center for Crime Victim Services Director Chris Fenno observed that “with this grant, Vermont will be able to strengthen the Human Trafficking Task Force and work across the state with allied professionals to help ensure that victims are identified and assisted. These funds will greatly enhance collaboration and continue building a strong and unified response to hold accountable those who engage in modern day slavery.”
Additional Task Force partners include Give Way to Freedom, United Way, Vermont Network Against Domestic and Sexual Violence, Vermont Coalition of Runaway and Homeless Youth Programs, HOPE Works, Spectrum Youth and Family Services, Disability Rights Vermont, Federal Bureau of Investigation, Homeland Security Investigations, U.S. Drug Enforcement Administration, U.S. Department of State Diplomatic Security Service, U.S. Department of Labor OIG, Vermont Department for Children and Families, Burlington Police Department, South Burlington Police Department, Colchester Police Department, Rutland Police Department, and the Office of the Chittenden County State’s Attorney.
The Vermont Human Trafficking Task Force is led by Co-Chairs Assistant United States Attorney Abigail Averbach, Assistant Attorney General Cindy Maguire, and Dr. Aron Steward of the Department for Children and Families, and is comprised of subcommittees dedicated to Law Enforcement, Victim Services, and Training and Outreach.
To make a report to law enforcement, call the Vermont Human Trafficking Hotline: 1-888-98HUMAN (1-888-984-8626). Information regarding the human trafficking of a youth (under the age of 18) should be reported to the Department for Children and Families by calling Vermont Centralized Intake: 1-800-649-5285.
If you become aware of an instance of human trafficking and would like to speak with a trained specialist who can help assess the situation and provide information and referrals, call: 211. For more information about human trafficking, please visit https://humantraffickinghotline.org or www.justice.gov/humantrafficking.
U.S. Attorney’s Office for the District of Columbia Launches Hotline for Survivors of Child Sexual Abuse by ClergyRead the Press Release
WASHINGTON – The Superior Court Division’s Sex Offense and Domestic Violence Section and the Victim Witness Assistance Unit of the U.S. Attorney’s Office for the District of Columbia are launching a hotline and e-mail address for survivors to report child sexual abuse by clergy, U.S. Attorney Jessie K. Liu announced today.
Survivors of child sexual abuse by clergy who wish to share their experiences and/or those who have knowledge of such abuse are encouraged to report these incidents to the U.S. Attorney’s Office for potential criminal investigation and prosecution, as a part of the Office’s Superior Court Division intake process.
Survivors of child sexual abuse by a clergy member that took place in a house of worship, school, or other location in the District of Columbia can call the Clergy Abuse Reporting Line at 202-252-7008 or send an e-mail to [email protected]. Survivors can access further information by visiting the following website: https://www.justice.gov/usao-dc/victim-witness-assistance/report-clergy-abuse
All reports will be reviewed and a team of experienced criminal investigators, prosecutors, and victim advocates from the Superior Court Division of the U.S. Attorney’s Office will determine whether any criminal charges can be brought or victim services provided. The victim advocates, who are part of the Victim Witness Assistance Unit, are available to offer support and guidance to survivors who wish to report.
Depending on the nature of the report, some information may be referred to law enforcement or the Office of the Attorney General for the District of Columbia.
Individuals in need of police assistance or wishing to report any other criminal activity or sexual assault or abuse should call 911.
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The U.S. Attorney’s Office is deeply committed to the prosecution of those who commit sexual assaults in the District of Columbia, particularly those who commit such crimes against children. The Sex Offense and Domestic Violence Section in the Superior Court Division is a specialized unit staffed by highly trained and committed prosecutors who investigate and prosecute individuals who commit sexual assaults against children and adults in the District of Columbia, including abuse committed by individuals in a position of trust with the victim. The Victim Witness Assistance Unit provides comprehensive assistance to survivors of sexual abuse and their families. The Office’s victim advocates are highly trained professionals with specialized knowledge of the court system and experience with trauma resulting from sexual assault.
U.S. Attorney Supports Taking Back Unused Prescription Drugs on October 27thRead the Press Release
LEXINGTON, Ky. – Robert M. Duncan, Jr., the U.S. Attorney for the Eastern District of Kentucky, announces his support and encouragement for the DEA and Lexington Police Department, in their National Prescription Drug Take Back Day, Saturday, October 27th, from 10 a.m. to 2 p.m. The DEA and local agencies will be providing the public its 16th opportunity in the past 7 years to take an easy step to help prevent pill abuse and theft, by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs.
Bring your pills for disposal to the following site:
Lexington - Kentucky American Water, 2300 Richmond Rd.
The DEA cannot accept liquids, needles, or sharps, only pills or patches. The service is free and anonymous, no questions asked.
“I strongly support the efforts of DEA and our other law enforcement partners in reducing unlawful access to prescription drugs,” stated U.S. Attorney Duncan. “The DEA and the other agencies involved in Take Back Day provide a vital resource in fighting the opioid problem in the Commonwealth. Far too often, the path to addiction starts with experimentation with legitimately prescribed prescription opioids found in the home. By participating in Take Back Day and disposing of unused pills, you can help prevent a loved one from misusing or abusing prescription drugs.”
For more information about the disposal of prescription drugs or about the October 27th Take Back Day event, go to www.DEATakeBack.com.
Two Tennessee Men Convicted of Pharmacy Burglary and Drug TraffickingRead the Press Release
Case involved dozens of pharmacy burglaries across the Southeast and trafficking in the stolen pills
LONDON, Ky. – Two men from Grundy County, Tennessee were convicted Friday, by a federal jury sitting in London, of a conspiracy to break into pharmacies across the southeast United States and subsequently sell the stolen pills, including oxycodone and hydrocodone.
After a day-and-a-half of deliberations, following a four-day trial, the jury convicted 51-year-old James “Ronnie” Jones and 41-year-old Tony Britton of conspiracy to distribute Schedule II controlled substances. The jury also convicted Britton of the burglary of Stephanie’s Down Home Pharmacy in Corbin, on January 26, 2014.
According to testimony at trial, Jones and Britton worked with others to steal oxycodone and other pills from small, independent pharmacies through nighttime burglaries. The stolen pills would then be sold primarily in central Tennessee. The evidence revealed that the conspiracy was responsible for many dozens of burglaries across a five-year span, including several in eastern and western Kentucky.
Both Jones and Britton were indicted in November 2017.
Co-defendants Robert Nunley, 46, Christopher Land, 56, Anthony Bosio, 45, Randy Stiefel, 54, Kenneth Britton, 40, and Jamie Sweeton, 43, were also indicted and have all pleaded guilty.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; D. Christopher Evans, Special Agent in Charge of the Drug Enforcement Administration’s Louisville Field Division; David Rausch, Director of the Tennessee Bureau of Investigation, and Clint Shrum, Sherriff of Grundy County, Tennessee, jointly announced the convictions.
The investigation was conducted by the DEA, the Tennessee Bureau of Investigation, and the Grundy County Sheriff’s Office, in partnership with several local police departments. The United States was represented in the case by Assistant U.S. Attorney Greg Rosenberg.
Jones and Britton will appear for sentencing on February 19, 2019. Jones faces a maximum of 20 years in prison and Britton faces a maximum of 40 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing the sentence.
Two Charged in Murder of Woman Whose Body was found on Federal Land at Joint Base Lewis-McchordRead the Press Release
Two men are under arrest and charged with second degree murder for the homicide of 34-year-old Jessica Shaunti Jackson, a single-mother whose body was found on Joint Base Lewis-McChord in September 2018, announced U.S. Attorney Annette L. Hayes. BOBBIE ANSON PEASE, 49, of Tacoma and JEREMY JAY WARREN, 30, of Forks, Washington, are charged in a criminal complaint with killing Jackson on September 4, 2018. WARREN will appear in U.S. District Court in Tacoma at 2:30 today. PEASE will make his appearance in U.S. District Court in Tacoma in the near future.
According to the complaint, Jackson was reported missing on September 8, 2018. The Tacoma Police Department investigation revealed she was last seen on September 4, 2018, at a convenience store in Tacoma with the defendants. Jackson’s body was discovered on September 13, 2018, in a wooded area near Spanaway, Washington that is part of Joint Base Lewis-McChord. Because the victim was killed on federal land where there is exclusive federal jurisdiction, the FBI is the lead investigative agency and jurisdiction is in federal court.
Information in the complaint reveals that surveillance video shows PEASE’ car driving to and from the general area of the murder scene at the approximate time Jackson was killed. A firearm believed used in the killing was recovered from the Puyallup River. The investigation into the murder continues.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The investigation is being led by the FBI with assistance from the Tacoma Police Department. The case is being prosecuted by Assistant United Sates Attorneys Grady Leupold and Ye-Ting Woo.
Spent Shell Casings Tied Suspect to Shots Fired, Stolen GunRead the Press Release
TOPEKA – A Topeka man was sentenced Monday to 40 months in federal prison for unlawful possession of a stolen gun, U.S. Attorney Stephen McAllister said.
Robert M. Glasscox, 47, Topeka, Kan., pleaded guilty to one count of possessing a stolen firearm. The investigation began when a Topeka police officer stationed in a parking lot at 2622 S.E. 6th Avenue heard three gunshots nearby. When he stopped Glasscox’s car, he found two spent shell casings and a box of ammunition in the car. Investigators found a third spent shell casing at the corner of 6th and Golden, which was identical to the spent casings in Glasscox’s car.
Investigators found a 9 mm handgun at S.E. 10th Avenue and California, near where Glasscox was stopped. The ammunition in the gun was identical to the spent shell casings and the ammunition in Glasscox’s car. The gun had been reported stolen.
McAllister commended the Topeka Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Jared Maag for their work on the case.
This case was prosecuted under the Justice Department’s Project Safe Neighborhood initiative.
Sitka Felon Charged for Illegally Constructing, Possessing a Pipe BombRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Sitka man has been indicted on federal charges alleging he illegally constructed and possessed a pipe bomb.
Zachary Loewen, 28, of Sitka, was named in the indictment charging him with possession of an unregistered destructive device, unlawfully making a destructive device, and for being a felon in possession of an explosive. Loewen’s arraignment hearing has been scheduled for Oct. 25, 2018, at 11:30 a.m.
According to the federal indictment, on or about Oct. 4, 2018, Loewen knowingly possessed and made an explosive device, specifically a pipe bomb, not registered to him in the National Firearms Registration and Transfer Records. The indictment further alleges that, on Oct. 14, 2018, Loewen knowingly received and possessed a combination of parts intended for the construction of pipe bombs.
According to state court documents, after failed attempts at purchasing a firearm due to his prior felony convictions, Loewen began purchasing materials to construct a pipe bomb. On Oct. 4, 2018, near Herring Cove Road in Sitka, Loewen allegedly attempted to ignite the bomb with a candlewick fuse, but abandoned the explosive device after a failed ignition.
Loewen has two prior felony convictions in the state of Washington and was therefore prohibited from possessing explosives. If convicted, Loewen faces a maximum penalty of up to 10 years in prison on each count, as well as a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Sitka Police Department (SPD), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Federal Bureau of Investigation (FBI) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Kimberly Sayers-Fay.
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. Attorney General Jeff Sessions 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, Attorney General Sessions 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.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Sentencings for October 11 - 17, 2018Read the Press Release
Federal District Court Judge Nancy D. Freudenthal sentenced JOHN PRESTON JACKSON, 65, of Casper, Wyoming on October 11, 2018 for possession with intent to distribute oxycodone and possession of a firearm in furtherance of a drug trafficking crime. Jackson was arrested in Casper, Wyoming. He received one hundred twenty months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay restitution in the amount of $400.00. The Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced CHRISTINA O’DELL, 40, of Cheyenne, Wyoming on October 11, 2018 for obtaining a controlled substance by fraud. She received thirty-six months of supervised release, and ordered to pay restitution in the amount of $11.32. The Veterans Administration investigated this case.
Chief Federal District Court Judge Scoot W. Skavdahl sentenced VALENTIN DOMINGUEZ NOYOLA, 42, of Acapulco, Mexico on October 11, 2018 for possession with intent to distribute methamphetamine. Noyola was arrested in Rock Springs, Wyoming. He received forty-one months of imprisonment, to be followed by sixty months of supervised release, and ordered to a $100.00 special assessment. The Sweetwater County Sheriff’s Office and Wyoming Division of Criminal Investigation investigated this case.
Federal District Court Judge Alan B. Johnson sentenced JULIO CESAR QUINTERO, 21, of Phoenix, Arizona on October 10, 2018 for conspiracy to distribute methamphetamine. Quintero was arrested in Larimer County, Colorado. He received seventy months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay restitution in the amount of $900.00. The Wyoming Division of Criminal Investigation, Northern Colorado Drug Task Force, U.S. Drug Enforcement Agency, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
Federal District Court Judge Alan B. Johnson sentenced ANDREW CHARLES MILLER, 28, of Cheyenne, Wyoming on October 17, 2018 for carrying a firearm during and in relation to a drug trafficking crime. Miller was arrested in Cheyenne, Wyoming. He received sixty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay restitution in the amount of $1000.00 and a $100.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
Sentencings in Large Multi-State Moultrie Meth Ring Case, More Expected This WeekRead the Press Release
ALBANY-- United States Attorney for the Middle District of Georgia, Charles E. Peeler, announced Tuesday that eleven of a total of 28 individuals involved in a massive Moultrie-based Methamphetamine distribution ring were sentenced by The Honorable Leslie J. Abrams on Monday, October 22, 2018 and Tuesday, October 23, 2018 in U.S. Federal Court in Albany. More sentencings in this crime ring are expected throughout the week.
Authorities estimate that the group was responsible for the distribution of more than 20 kilograms of the drug. From May until November 2016, an organization of 30 individuals distributed Methamphetamine in and around Moultrie, Georgia. According to court evidence, some of these transactions also occurred in Atlanta, GA and parts of Florida, including at the Georgia-Florida line.
“We must put a stop to the flow of methamphetamine in and through our state,” said Charles Peeler, the U.S. Attorney for the Middle District of Georgia. “This extensive meth crime ring operating out of a quiet community in Southwest Georgia is an example of just how pervasive these networks have become. I salute the tireless efforts of more than a dozen law enforcement agencies and our committed prosecutorial team that contributed to bringing this meth distribution ring down.”
The following individuals were sentenced Monday:
- Marcus Andrews age 35 of Bristol, FL, plead guilty to Conspiracy to possess Meth with the Intent to Distribute, and was sentenced to 145 months and 3 years supervised release.
- Sharon Blackwell age 46 of Moultrie, GA, plead guilty to Possession With Intent To Distribute Methamphetamine, and was sentenced to 100 months and 5 years supervised release.
- Samuel Butler age 56 of Crawford, FL, plead guilty to Conspiracy to Possess with Intent to Distribute controlled substances, and was sentenced to 96 months and 5 years supervised release.
- Michael Dampier age 45 of Doerun, GA, plead guilty to Conspiracy to Possess with Intent to Distribute Methamphetamine, and was sentenced to 160 months to serve, 5 years supervised release and $100 mandatory assessment.
- Devin Dorminey age 23 of Lake City, FL, plead guilty to Possession of a Firearm by a Drug User, and was sentenced to 18 months and 3 years supervised release.
- Leroy Haynes age 41 of Norman Park, GA, plead guilty to Conspiracy to Possess with Intent to Distribute Methamphetamine, and was sentenced to 180 months and 5 years supervised release.
- Micahel Kulak age 45 of DeLeon Springs, FL, plead guilty to Interstate Travel in Aid of Racketeering Enterprises, and was sentenced to 24 months and 3 years supervised release.
- Stephanie McMurphy age 39 of Adel, GA, plead guilty to Distribution of Methamphetamine within 1000 feet of a school and was sentenced to 102 months to serve, 6 years supervised release and $100 mandatory assessment.
- Avery Norman age 37 of Moultrie, GA, plead guilty to Use of a Communication Device in Furtherance of Possession with Intent to Distribute Methamphetamine and was sentenced to 24 months and 1 year supervised release.
- Cambrick Taylor age 22 of Moultrie, GA, plead guilty to Interstate Travel in Aid of Racketeering Enterprises, and was sentenced to 12 months and day to serve, 2 years supervised release and $100 mandatory assessment.
- Melissa Valdez Williams age 30 of Moultrie, GA, plead guilty to Possession with Intent to Distribute controlled substances and was sentenced to 180 months and 5 years supervised release.
The case was investigated by agents of the Drug Enforcement Administration, Georgia Bureau of Investigations, Georgia Department of Corrections, Georgia Department of Community Supervision, Mid-South Narcotics Task Force, Colquitt County Sheriff’s Office, Crisp County Sheriff’s Office, Tift County Sheriff’s Office, Henry County Sheriff’s Office, Grady County Sheriff’s Office, Berrien County Sheriff’s Office, Cook County Sheriff’s Office, Leon County Florida Sheriff’s Office, Volusia County Florida Bureau of Investigation and Moultrie Police Department.
Assistant United States Attorney Leah E. McEwen is prosecuting the case for the United States.
Roswell Woman Sentenced to Ten Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Monica Vega, 36, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison for her conviction on methamphetamine trafficking charges. Vega will be on supervised release for five years after completing her prison sentence.
Vega was arrested on Nov. 17, 2017, on a three-count indictment charging her with methamphetamine trafficking and firearms offenses. The indictment charged Vega with possessing methamphetamine with intent to distribute on April 20, 2017 and Oct. 20, 2017, and possessing a firearm in furtherance of a drug trafficking crime on April 20, 2017. According to the indictment, Vega committed the crimes in Chaves County, N.M.
On June 19, 2018, Vega pled guilty to a two-count felony information charging her with possessing methamphetamine with intent to distribute. In entering the guilty plea, Vega admitted that on April 20, 2017, law enforcement agents seized approximately 57.8 grams of methamphetamine, drug paraphernalia, and $1,083 while executing a search warrant at her residence. Vega also admitted that on Oct. 19, 2017, New Mexico State Police officers seized approximately 33.6 grams of methamphetamine from her when they arrested her on a traffic violation. Vega acknowledged that she planned to distribute the methamphetamine to others for money.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearm and Explosives, Homeland Security Investigations, the Roswell Police Department, New Mexico State Police and the HIDTA Chaves County Metro Narcotics Task Force. Assistant U.S. Attorneys Dustin C. Segovia and John Balla of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Rock Island Man Pleads Guilty to Hobbs Act RobberyRead the Press Release
ROCK ISLAND, Ill. – Sentencing is scheduled in February 2019 for Ronald T. Walker, 37, of Rock Island, Ill., who pleaded guilty on Oct. 19, 2018, to one count of robbery, in violation of the Hobbs Act, before U.S. District Judge Sara Darrow.
As part of his plea, Walker admitted that on Dec. 18, 2017, he arranged for the purchase from a drug dealer of a small amount of marijuana. Instead of purchasing the drugs, however, Walker stabbed his would-be drug dealer and took the marijuana by force. Walker’s assault was so vicious that the point of his knife was embedded in his victim’s skull for several months.
Robbery of drugs or drug proceeds, even illegal ones, constitutes a violation of the Hobbs Act, which criminalizes robberies affecting interstate commerce. Violators face up to 20 years in prison, a fine of up to $250,000, and up to three years of supervised release following any term of imprisonment. Additional, consecutive penalties are added if firearms are involved.
Walker’s sentencing is currently set for Feb. 19, 2019, before Judge Darrow. Walker has remained in the custody of the U.S. Marshals Service since he was arrested and indicted on the federal charge in June 2018.
The charge is the result of an investigation by the Rock Island Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Donald B. Allegro and Kevin C. Knight are prosecuting the case.
Retired Lawyer Indicted for Tax Evasion and Making a False StatementRead the Press Release
PORTLAND, Ore. – On October 16, 2018, a federal grand jury in Portland charged retired attorney Bruce L. Lamon, of Hillsboro, Oregon, with evading $744,000 in personal income taxes.
Lamon is charged in a two-count indictment alleging he evaded payment of his taxes for calendar years 2008 through 2013 and failed to disclose rental income in an application to proceed In Forma Pauperis in a civil case he filed in federal court in 2016.
Between 2006 and 2012, Lamon worked as a commercial litigator at a law firm in Honolulu, Hawaii. Lamon retired in 2012 and moved to Hillsboro. Between November 2012 and December 2015, in the District of Oregon, Lamon is alleged to have committed numerous affirmative acts to evade his tax obligations. These acts include but are not limited to titling vehicles in his former spouse’s name and purchasing rental properties with cash using an LLC registered in Hawaii to conceal these assets from the IRS.
This case is being investigated by IRS Criminal Investigation (IRS-CI) and prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Oregon Tax Fraud Promoter Sentenced to Prison for Sending Fraudulent Financial Instruments and Failing to File Tax ReturnsRead the Press Release
A Hillsboro, Oregon, tax fraud promoter was sentenced to ten years in prison today for submitting fraudulent financial instruments to financial institutions and the U.S. Treasury and failing to file income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and evidence presented at his April 2017 jury trial, from approximately 2008 through 2015, Winston Shrout, 70, created and submitted more than 300 fraudulent financial instruments with the intent of defrauding financial institutions and the U.S. Treasury. Shrout held seminars and private meetings to promote and market the use of these fraudulent financial instruments to pay off debts, including federal taxes. Shrout sold recordings of his seminars, templates for fraudulent financial instruments and other materials through his website.
The evidence presented at trial also proved that Shrout failed to file his 2009 through 2014 tax returns despite earning substantial income from seminars, licensing fees associated with the sale of his products and annual pension payments. Shrout admitted during trial that he had not paid income tax for at least twenty years.
In addition to the term of imprisonment, U.S. District Judge Robert E. Jones ordered Shrout to serve five years of supervised release and pay restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Stuart Wexler and Lee Langston of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the District of Oregon for their support during the investigation and prosecution of this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Oklahoma Orthopedic Company to Pay $455,000 to Settle Claims of False Medical BillingRead the Press Release
OKLAHOMA CITY – OLSEN ORTHOPEDICS, P.L.L.C., an Oklahoma City orthopedic company, has agreed to pay $455,000 to settle civil allegations that it submitted false claims to Medicare and TRICARE, announced Robert J. Troester of the U.S. Attorney’s Office.
The United States alleges that from December 1, 2011, through May 5, 2016, Olsen Orthopedics administered by injection Orthovisc and Euflexxa to Medicare and TRICARE beneficiaries. Medicare and TRICARE will only reimburse health care providers for drugs and devices approved by the U.S. Food and Drug Administration. According to the United States, Olsen Orthopedics’ claims to Medicare and TRICARE were false because the Orthovisc and Euflexxa it administered was purchased outside the United States and did not have FDA approval for use in the United States.
In order to resolve the allegations, Olsen Orthopedics agreed to pay $455,000.
In reaching this settlement, Olsen Orthopedics did not admit liability, and the government did not concede that its claims lack merit. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty of litigating the case.
This case was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations; the FBI; and the Defense Criminal Investigative Service. It was prosecuted by Assistant United States Attorneys Ronald R. Gallegos and Scott Maule.
New York Woman Sentenced to 18 Months in Prison for Trafficking more than $3 Million in Counterfeit Footwear and Handbags through Port of NewarkRead the Press Release
NEWARK, N.J. – A Flushing, New York, woman was sentenced today to 18 months in prison for her plan to distribute counterfeit Nike sneakers, Louis Vuitton handbags, and other phony merchandise that was shipped into the Port of Newark, U.S. Attorney Craig Carpenito announced.
Xiao Xia Zhao, 42, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging her with one count of trafficking in counterfeit goods. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From November 2013 through February 2017, Zhao received certain shipping container numbers from an individual overseas that identified at least three containers containing counterfeit merchandise. Zhao asked individuals working at the Port of Newark to remove the containers from the port before they could be examined by U.S. Customs and Border Protection. Once the containers were removed, Zhao directed that they be delivered to other individuals, who would then distribute the merchandise in New Jersey and elsewhere.
However, law enforcement officers intercepted the containers before Zhao could distribute the goods. At no time was Zhao authorized to import Nike footwear, Louis Vuitton handbags, or any of the other counterfeit merchandise in the containers.
In total, Zhao trafficked in thousands of pairs of fake Nike footwear, Louis Vuitton handbags, and other counterfeit items, with a total estimated retail value of over $3 million. Zhao also paid individuals over $75,000 in exchange for the delivery of the containers.
In addition to the prison term, Judge Linares sentenced Zhao to three years of supervised release.
U.S. Attorney Carpenito credited officers of U.S. Customs and Border Protection, under the direction of Francis J. Russo, Acting Director of Field Operations, New York Field Office; and special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Ness County Sheriff Pleads Guilty, Agrees to ResignRead the Press Release
WICHITA, KAN. – The Sheriff of Ness County pleaded guilty Monday to a federal firearm charge and agreed to resign, U.S. Attorney Stephen McAllister said.
Sheriff Bryan Whipple, 48, Ness City, Kan., pleaded guilty to one count of knowingly selling a gun to a person who was prohibited under federal law from possessing a firearm. In his plea, Whipple admitted he arranged to sell a .45 caliber pistol and ammunition to a man he knew was a convicted felon.
The plea agreement calls for Whipple to resign his position as sheriff and to surrender his law enforcement certification from the Kansas Commission on Peace Officers’ Standards and Training. Both parties will recommend Whipple be sentenced to probation. Sentencing is set for Jan. 17.
McAllister commended the Kansas Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Debra Barnett for their work on the case.
Mercer County Man Pleads Guilty to Possessing Crack CocaineRead the Press Release
PITTSBURGH – James Bert White, III, 25, of Farrell, Pennsylvania, has pleaded guilty in federal court in Pittsburgh to a charge of possessing with the intent to distribute a quantity of cocaine base, United States Attorney Scott W. Brady today.
According to information presented to the court, on September 21, 2017, narcotics agents and task force officers from the Pennsylvania Attorney General’s Office executed a search warrant at White’s residence located in Farrell, PA. Earlier that month, two confidential informants purchased crack from White at the residence. During the search, investigators recovered a plastic bag containing 23.53 grams of crack; a digital scale; drug-packaging material; and $1,664.00 in U.S. currency.
Judge Donetta W. Ambrose scheduled sentencing for March 19, 2019 at 11 a.m. White, who has a prior felony drug conviction, faces a maximum total sentence of 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued White’s order of pretrial detention.
Assistant United States Attorney Michael L. Ivory is prosecuting this case on behalf of the government.
The Pennsylvania Attorney General’s Office and the Hermitage Police Department conducted the investigation leading to White’s conviction in this case.
Medical Equipment Company Agrees to Pay $5.25 Million to Resolve Allegations of Fraudulent Claims for Compounded Medical CreamsRead the Press Release
LEXINGTON, Ky. – Cooley Medical Equipment, Inc., an Eastern Kentucky medical equipment supplier headquartered in Prestonsburg, Kentucky, has agreed to pay $5,254,912 to resolve allegations that it violated the False Claims Act by submitting false or fraudulent claims that misrepresented the ingredients used in certain compounded medical creams.
Cooley previously operated a pharmacy in Prestonsburg that in 2015 began making compounded medical creams. Compounding pharmacies, like Cooley’s, prepare customized medications for individual patients, usually by mixing ingredients in order to create a prescription cream. Cooley billed these prescriptions to government insurers, including Medicare, Kentucky Medicaid, and the Department of Veterans Affairs, Veterans Health Administration (known as CHAMPVA). Cooley was required by CHAMPVA and Kentucky Medicaid to obtain their prior authorization in order to use bulk powder forms of Lidocaine and Prilocaine as ingredients in its compounded creams. Without such prior authorization, Kentucky Medicaid and CHAMPVA would not reimburse Cooley for the creams. Medicare, through its Part D program, does not cover bulk powder ingredients at all.
Rather than go through the prior authorization process, or face limited reimbursement from Medicare Part D, Cooley misrepresented the nature of its Lidocaine and Prilocaine ingredients in its claims to federal insurers, falsely stating that Cooley’s compounded medical creams were made with cream-based Lidocaine and Prilocaine ingredients, instead of the bulk powder Cooley actually used. This practice led to the submission of thousands of false claims by Cooley between January 2015 and December 2016, and millions of dollars in improper reimbursements. Cooley did voluntarily self-disclose this misconduct to the United States Attorney’s Office, took proactive steps to resolve the problem, and no longer operates a compounding pharmacy.
Under the terms of the settlement agreement, Cooley will be allowed to pay back the $5,254,912, plus interest, over a period of 6 years. Because Cooley self-disclosed the misconduct, it was able to resolve its liability for only 1.5 times the amount of monetary loss caused by its false claims; by statute, the False Claims Act typically imposes liability for 3 times the amount of loss suffered by the government. In addition, because of Cooley’s self-disclosure, the United States Department of Health and Human Services, which administers the Medicare and Medicaid programs, has agreed not to pursue any administrative action against Cooley that would exclude it from further participation in those federal programs.
“The Department of Justice, and our Office, take seriously the responsibility to aggressively pursue False Claims Act cases, as payment of false or fraudulent claims reduces the pool of money available to pay legitimate claims,” stated United States Attorney Robert M. Duncan, Jr. “Recovering false or fraudulent payments is an essential component of our Affirmative Civil Enforcement efforts and defends the financial integrity of these government programs. We will continue to prioritize these important cases.”
This settlement was a result of an investigation by the United States Attorney’s Office for the Eastern District of Kentucky and the United States Food and Drug Administration, Office of Criminal Investigation (FDA-OCI). An investigation of individuals within Cooley who were responsible for this misconduct is ongoing. Assistant United States Attorney Paul McCaffrey handled the matter for the United States. Cooley admits the allegations contained in the Settlement Agreement, but there been no judicial determination of liability.
Manhattan U.S. Attorney Announces Settlement of Fraudulent Billing Claims Against Vascular Access Centers, L.P.Read the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Scott Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (“HHS-OIG”) New York Region, announced today that the United States has settled civil healthcare fraud claims against VASCULAR ACCESS CENTERS, L.P., and related entities (collectively, “VAC”), for their submission of fraudulent claims for reimbursement by Medicare for vascular surgical procedures not covered under Medicare. In connection with the settlement, which was approved on October 19, 2018, by U.S. District Judge Lorna G. Schofield, VAC agreed to pay at least $3.825 million and up to $18.3 million to resolve its False Claims Act liabilities. In the settlement, VAC also admitted to and accepted responsibility for its conduct.
Manhattan U.S. Attorney Geoffrey S. Berman said: “For years, Vascular Access Centers cheated taxpayers out of millions of dollars by billing Medicare for treatments that were clearly nonreimbursable, and in some cases by falsifying medical records to make it seem as if its billings were justified. Through this settlement, VAC is being made to account for its misconduct.”
HHS-OIG Special Agent in Charge Scott Lampert said: “Performing and billing for surgical procedures not allowed under Medicare rules will not be tolerated. We will continue to work with our law enforcement partners to investigate these deceptive practices.”
According to the complaint filed in Manhattan federal court:
Patients with end-stage renal disease (“ESRD”) who are receiving dialysis may require vascular access surgical procedures, such as fistulagrams, where dye is injected into the patient’s vein or artery to visualize blood flow, and percutaneous transluminal angioplasties, in which wires and balloons are inserted into blood vessels that have narrowed in order to restore blood flow. However, according to applicable Medicare billing rules, fistulagrams and angioplasties are not to be performed, and are not reimbursable, unless the patient has specific and documented clinical problems, such as significant difficulty receiving dialysis properly.
During the relevant period, from July 2012 through December 2016, VAC operated at least 22 office-based surgical sites in 12 states and Washington, D.C. VAC’s patients primarily consisted of ESRD patients undergoing dialysis treatment. As a regular practice, VAC scheduled patients for fistulagrams and angioplasties three months in advance, and VAC performed fistulagrams and angioplasties on these patients as a matter of routine, regardless of whether there was a justifiable clinical reason to do so. Furthermore, VAC sometimes misrepresented the medical conditions of patients in its medical records to make it seem as if they suffered from symptoms that would warrant the procedures. VAC unlawfully billed Medicare for these procedures, which were excluded from Medicare coverage by the applicable rules.
* * *
As part of today’s settlement, VAC admitted that its centers regularly performed, and billed Medicare for, vascular surgery procedures as a prophylactic or screening measure, even though the patients presented without any documented evidence that they exhibited a need for therapies. VAC also agreed to make payments totaling at least $3.825 million and up to $18.3 million over five years, based on its ability to pay and depending on certain financial contingencies. In addition, VAC entered into an integrity agreement with HHS-OIG, through which it agreed to implement compliance measures and submit to monitoring by HHS-OIG. Simultaneous with the settlement of this action, the United States is also settling a different lawsuit against VAC filed in the United States District Court for the Eastern District of Louisiana with overlapping claims.
The allegations of fraud stated in the Complaint were first brought to the attention of federal law enforcement by a whistle-blower who filed a lawsuit under the False Claims Act.
The case is being handled by the Office’s Civil Frauds Unit. Assistant United States Attorney Jean-David Barnea is in charge of the case.
Maine Resident Sentenced to a Year in Prison for Threatening an Attack at Hangout Music FestivalRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that Senior United States District Judge Callie V.S. Granade sentenced Christopher Scott Carey, 30, a resident of Portland, Maine, to imprisonment for twelve months and one day for making interstate threatening communications. As part of the sentence, the judge ordered that Carey undergo three years of supervised release after finishing his term of imprisonment, pay a $100 mandatory special assessment, receive substance abuse testing, and receive treatment for substance abuse and mental health.
According to documents filed with the court as part of his guilty plea, on March 12, 2018 Carey posted threatening communications on a Facebook group page read by other persons regarding the Hangout Music Festival, a popular annual festival held in May in Gulf Shores, Alabama. Carey posted about the festival, “I’m bringing an AR 15 so it should be good inside.” A Facebook user remarked, “Should be good as long as your friend brings the ammo in a separate bag.” Carey replied, “Extended mags bro [smiley face emoji] hope everyone’s ready [explosions emoji].” A Facebook user posted, “Delete this garbage” to which Carey replied, “But what if it’s for real. Got to get that warning out there.” Representatives of the music festival notified law enforcement officials, who took various security precautions as a result of Carey’s threats.
On May 4, 2018, the court signed a criminal complaint and issued a warrant for Carey’s arrest. On May 14, 2018, government agents arrested Carey in Portland, Maine. After being Mirandized, Carey admitted to sending the Facebook messages with the intent to communicate a true threat and with the knowledge that they would be viewed as a true threat by readers of the messages. Carey said that he recalled the mass shooting at a music festival in Las Vegas, Nevada in October 2017 and knew the similarities between what he posted and what had occurred at the Las Vegas festival.
On May 31, 2018, a federal grand jury for the Southern District of Alabama charged Carey with one count of making interstate threatening communications in violation of 18 U.S.C. § 875(c). On July 23, 2018, Carey pleaded guilty before Senior Judge Granade to the charge.
The Federal Bureau of Investigation and the Gulf Shores Police Department investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.Madera County Man Indicted for Excavating Native American Artifacts in Sierra National Forest Near the Town of North ForkRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment on October 18, 2018, against Vance Franklin Myers, 31, of Ahwannee, charging him with three counts of unauthorized excavation and removal of archeological resources, and one count of possession of stolen government property, U.S. Attorney McGregor W. Scott announced.
According to court documents, on July 26, 2015, while fighting a wild fire, fire fighters discovered an excavated site in the Willow Creek area of Box Canyon in the Sierra National Forest. Human remains and artifacts were located among large piles of sifted dirt, hand tools and a large screen sifting box.
According to the criminal complaint filed in this case, archeologists determined that the artifacts indicated long‑term use of the site between 500 A.D. and 1900. The site is believed to have been inhabited by members of the Mono Indian tribe. In August 2015, the archeological site was stabilized, rehabilitated, and the artifacts repatriated after consultation with the involved tribe.
The investigation revealed incidents of illegal excavation and looting in the same archeological site in September 2015 and again in August 2016, requiring a second site rehabilitation and reburial of the artifacts in October 2016. As the investigation progressed, Myers was identified as being involved in the excavation through photographs and statements.
According to the indictment, Myers was found to be in possession of archeological items such as stone tools, arrowheads, and beads, among other things.
“We are extremely proud of the Forest Service’s role in helping to reduce the theft and destruction of Native American remains and artifacts from national forest lands here in California,” said Randy Moore, Regional Forester for the USDA Forest Service Pacific Southwest Region. “Special Agent Michael Grate and the Sierra National Forest are to be commended for their excellent work in bringing this case to justice.”
Myers was arraigned on the indictment October 19, 2018, and entered pleas of not guilty. His next hearing is scheduled for January 28, 2019.
This case is the product of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Myers faces a maximum statutory penalty of two years in prison and a $100,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Leader of Drug Organization that Distributed Marijuana and Cocaine SentencedRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Tyron McFadden, of Philadelphia, Pennsylvania, was sentenced today to 276 months’ imprisonment, followed by 10 years of supervised release, after pleading guilty to conspiracy to distribute five kilograms or more of cocaine and 1,000 kilograms of marijuana; aiding and abetting the possession with intent to distribute cocaine and marijuana; and conspiracy to commit money laundering. The charges arose from defendant’s involvement as the leader of a large-scale drug trafficking organization that operated from in or about the fall of 2009 through October 2015, distributing multiple kilograms of cocaine and thousands of kilograms of marijuana in the Eastern District of Pennsylvania.
McFadden transported the drugs on commercial airlines and through the United States Postal Service. McFadden solicited the help of United States Postal employees to intercept the packages containing the drugs and deliver them directly to McFadden and his associates. McFadden continued to operate the drug organization while in custody on two separate occasions during the time frame of the conspiracy, as illustrated on recordings made from prison facilities.
McFadden and his associates also laundered over a million dollars in drug proceeds using numerous bank accounts with financial institutions with branches in both the greater Philadelphia and Los Angeles areas. Specifically, the organization structured the deposits in amounts less than $10,000 and often directed the owner of the bank account to withdraw the drug proceeds in California on the same day as the deposit was made in Philadelphia.
“McFadden and other members of this deadly drug organization pumped cocaine and marijuana into our community for years, profiting from other people’s misery,” said U.S. Attorney McSwain. “Even when he was in jail, McFadden continued to try to keep his drug operation afloat. The sentence today reflects the seriousness of his conduct and the need for leaders of drug organizations to be held accountable for their actions.”
“Tyron McFadden and his crew moved large amounts of cocaine and marijuana across the country to push here on our streets,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “Even after run-ins with the law, McFadden was so determined to continue in the drug trade, he orchestrated transactions from behind bars. The FBI will continue to investigate and dismantle drug trafficking operations like this and bring those involved to justice, as we work to protect and serve our community.”
KC Man Charged in $900,000 Romance Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been charged in federal court with participating in a romance fraud scheme that bilked victims across the United States and overseas of nearly $900,000.
Ronayerin K. Ogolor, 49, a naturalized U.S. citizen from Nigeria, was charged with one count of conspiracy to commit wire fraud in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Friday, Oct. 19, 2018.
The federal criminal complaint alleges that Ogolor participated in a conspiracy since 2014 that targeted people, some of them elderly, in search of companionship or romance through online websites such as Facebook, ChristianMingle.com, or Hangout.com. Ogolor allegedly defrauded his victims of $878,489 in total.
On Friday, Oct. 19, 2018, the FBI learned that Ogolor had purchased a plane ticket to Frankfurt, Germany, the day before and would be leaving that afternoon. Agents arrested Ogolor at Kansas City International Airport before he boarded his plane. Ogolor remains in federal custody pending a detention hearing, which has not yet been scheduled.
According to an affidavit filed in support of the federal criminal complaint, the perpetrators of the romance scams created several profiles on online dating sites. Conspirators then contacted men and women throughout the United States, Canada, and Europe, with whom they cultivated a sense of affection and often romance.
Having established relationships with the victims, the affidavit says, the perpetrators of the romance scams ultimately requested money for hospital fees, travel fees, ‘customs expenses,’ ‘gold import taxes,’ or investment opportunities. Conspirators directed the victims to wire transfer or deposit money into various bank accounts, including accounts established and maintained by Ogolor. Often after the victims transferred money into the specified accounts, conspirators claimed more money was needed, ‘to release the package’ or ‘to pay customs expenses’ on money or gold.
On other occasions, the affidavit says, conspirators fraudulently obtained checks through business email compromise, and had the victims deposit the checks into their accounts and wire and deposit money into various accounts, including accounts established and maintained by Ogolor. In a business email compromise, the conspirators hack into a business email account, and then send an email from what appears to be an employee with authority to approve payments, instructing that a check be disbursed in the victim’s name and sent to the victim. By using victims to deposit the checks and distribute the money, the conspirators distanced themselves from the business email hacking and fraud.
Ogolor’s victims lived outside Missouri. The affidavit specifically refers to 13 victims who each sent tens of thousands of dollars to Ogolor. One victim (a widow in Indiana who received a friend request on Facebook) believed a co-conspirator was a widower working on an oil rig off the coast of Louisiana; she sent a total of $450,000 to Ogolor. Another victim in Texas, who believed a co-conspirator was a widower and U.S. Army general deployed in Afghanistan, lost at least $300,000. The affidavit also refers to victims in Alabama, Ohio, Washington, Arizona, Florida, Illinois, California, and Italy.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI, the Kansas City, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Interagency Cooperation Cornerstone of Maximizing Law Enforcement Efforts to Protect the PublicRead the Press Release
MUSKOGEE, OKLAHOMA – One year ago, the Department of Justice (“DOJ”) announced the revitalization and enhancement of Project Safe Neighborhoods, commonly referred to as “PSN.” PSN is a key component of DOJ’s violent crime reduction strategy which is a top priority of Attorney General Jeff Sessions. PSN emphasizes, among other things, the importance of collaboration between federal, state, local, and tribal law enforcement agencies to focus enforcement efforts on the most violent offenders. Today, the United States Attorney’s Office for the Eastern District of Oklahoma is reporting the results of its efforts to combat violent crime over the last year.
The Eastern District has seen a substantial increase in violent defendants indicted since October 2017, with nearly a 90% increase when compared to the previous fiscal year. During the same period there has been an increase of over 100% in the number of defendants indicted for crimes related to drug trafficking. Forty-nine defendants were indicted for violent crimes and 51 for drug offenses. Nearly 75% of all cases indicted in federal court in the Eastern District in fiscal year 2018 were for violent crime or drug offenses.
“The increase in defendants indicted is a direct reflection of the hard work by this office and law enforcement agencies – federal, state, local, and tribal – throughout the district. But it also shows the determination to utilize the prosecuting authority that offers the best alternative for a long-term solution to violent crime,” United States Attorney Brian Kuester said. “Frequently jurisdiction is appropriate in state or federal district court. Because of open communication and trusted relationships, we are all doing a better job of considering the option that best serves the needs of the community.”
Offenses included in the violent crime category are child exploitation, bank robbery, kidnapping, domestic violence, violent crime in Indian Country, and federal weapons offenses. The predominant drug offenses prosecuted in federal courts are distribution, possession with intent to distribute or trafficking and generally involve significant quantities of illegal narcotics. In the Eastern District of Oklahoma Methamphetamine continues to be the most commonly seized drug. Cocaine and Fentanyl seizures are rare but have occurred.
“I consider our work against those in the drug trade as vital to making communities safer. People in the business of selling or transporting large quantities of illegal narcotics are in an inherently dangerous business which goes hand-in-hand with guns and violence. Efforts by law enforcement agencies to combat drug trafficking is an integral part of fulfilling their duty to public safety. Investigating and prosecuting drug dealers, dangerous felons that possess weapons, predators of children, and violent offenders who commit crimes in Indian Country has the positive result of reducing the number of violent people that are free to inflict their violence on the public,” said Kuester.
The following are just a few of the cases prosecuted and defendants sentenced in the Federal District Court for the Eastern District of Oklahoma over the last twelve months:
• Billy Hershell Smith II of Tahlequah was sentenced to 293 months’ imprisonment for Sexual Exploitation of Children
• Michael Leon Johnson of Okmulgee was sentenced to 210 months’ imprisonment for Felon In Possession of Firearm & Ammunition. Johnson had three previous convictions for a violent felony, a serious drug offense, or both
• Blake Alan Miller of Muskogee was sentenced to 180 months’ imprisonment for Possession with Intent to Distribute Methamphetamine
• John Carl Berryhill of Okmulgee was sentenced to 168 months’ imprisonment for Possession of Certain Material Involving the Sexual Exploitation of Minors
• James Paul Brown of Stilwell was sentenced to 188 months’ imprisonment for Possession with Intent to Distribute Methamphetamine and Felon In Possession of Firearm
• Justimiano Perez Diaz of Stigler was sentenced to 120 months’ imprisonment for Enticement of a Minor Using the Internet
• Jason Delaney Kiplinger of Oklahoma City was sentenced to 262 months’ imprisonment for Possession with Intent to Distribute Methamphetamine
• Brian Thomas Green, Kalvin Kyle McCown, and Travis Lee Hill, all of the Longview, Texas, area, were sentenced to 25, 20, and 15 years’ imprisonment respectively for their roles in the kidnapping and killing of Kenneth Earl Ayres
• Deana Marie Oakes of Panama, Oklahoma was sentenced to 168 months imprisonment for Possession with Intent to Distribute Methamphetamine
• Michael Aaron Campbell of Muldrow was sentenced to 120 months’ imprisonment for Enticement of a Minor Using a Facility of Interstate Commerce“These are not all PSN cases, but the interagency cooperation that is at the heart of the PSN Program has very clearly taken root in all areas of the work that we do, particularly in those cases involving violent offenders. PSN promotes the interagency cooperation that is a cornerstone of maximizing our impact on our public safety priority,” Kuester added.
Huntington Man Sentenced for Federal Heroin ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man caught with heroin in April 2017 was sentenced today to 14 months, announced United States Attorney Mike Stuart. Aubrey Gardner, 25, previously pled guilty to possession with intent to distribute heroin. The Huntington Police Department and the Huntington FBI Drug Task Force conducted the investigation.
“So many poison peddlers,” said United States Attorney Mike Stuart. “But our efforts are relentless to rid West Virginia communities of drug traffickers.”
On April 29, 2017, officers conducted a traffic stop on a vehicle in Huntington. Upon searching Gardner, officers located approximately 25 grams of heroin.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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