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29 November 2018
Mexican National Charged with Assaulting Border Patrol AgentRead the Press Release
NEWS RELEASE SUMMARY – November 29, 2018
SAN DIEGO – A Mexican national attempting to illegally re-enter the United States while armed with a loaded firearm was arrested and charged in an assault on a U.S. Border Patrol agent earlier this week.
According to the criminal complaint, at approximately 4:30 a.m., on Monday November 26, 2018, approximately ½ mile north of the United States/Mexico border, and two miles east of the Otay Mesa Port of Entry, a United States Border Patrol Agent responded to a radio call-out regarding a person crossing on foot from Mexico to the United States. After a short search, the agent encountered Hector Rodriguez-Chavez lying face-down in tall grass. As the agent drew near, Rodriguez turned and pointed a loaded pistol at the agent. The agent placed his body on Rodriguez’s right arm in an attempt to gain control of the pistol. Rodriguez resisted and the two wrestled for about a minute before two more agents arrived on the scene. Rodriguez ignored several verbal commands to relinquish the pistol and stop resisting. The second agent to arrive deployed a tazer to subdue Rodriguez and gain control over the pistol. Rodriguez was detained and arrested.
Court records show Rodriguez has a criminal record that includes felony convictions for violent drug, immigration and firearms crimes. Rodriguez is a Mexican national who has previously been deported from the United States.
“Assault on federal officers is one of the Department of Justice’s top priorities,” said U.S. Attorney Adam L. Braverman. “Our office is committed to vigorously prosecuting these cases.”
“Our agents’ vigilance prevented this dangerous person from illegally re-entering our communities,” said Rodney S. Scott, Chief Patrol Agent for San Diego Sector Border Control.
This case is being prosecuted by Assistant United States Attorney Stephen H. Wong.
DEFENDANT Case Number 18mj6015-NLS
Hector Rodriguez-Chavez, Age 57
SUMMARY OF CHARGES
Assault on a Federal Officer, in violation of Title 18, U.S.C., Sec. 111 (a)(l ) and (b)
Maximum penalty: Twenty years in prison, $250,000 fine
Alien in Possession of a Firearm, in violation of Title 18, U.S.C., Sec. 922(g)(5)
Maximum penalty: ten years in prison, $250,000 fine
AGENCIES
U.S. Border Patrol
Federal Bureau of Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Mexican Citizen Sentenced for Illegal Entry Following Drug ConvictionsRead the Press Release
RICHMOND, Va. – A Mexican citizen most recently residing in Westmoreland County was sentenced today to three years in prison for illegal reentry following removal for a felony conviction.
“Morales-Ramirez was convicted of a sexual assault felony in 2000 as an illegal alien,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “He illegally reentered a second time and proceeded to commit more crimes. He clearly has no regard for our nation’s laws and borders and he poses a threat to our public safety. We are committed to criminal immigration enforcement and will continue to prioritize these cases.”
According to court documents, in 2000, Miguel Morales-Ramirez, 42, illegally entered the United States. Following a 2000 felony conviction for sexual assault, Morales-Ramirez was removed. In 2007, he illegally reentered the United States intending to stay permanently. Once in Virginia, Morales-Ramirez committed several driving violations, and in 2017, Morales-Ramirez was charged and convicted of drug offenses in Westmoreland County.
“ICE focuses its immigration enforcement efforts on removing public safety threats like Morales-Ramirez from our communities,” said Russell Hott, Field Office Director for ICE’s Enforcement and Removal Operations Washington. “Let today’s sentence serve as a lesson. ICE will not permit individuals to game our immigration system. If you violate the nation’s immigration laws, you will be prosecuted for your crimes.
ICE arrested Morales-Ramirez as part of Operation Eagle’s Shield in July 2018. This operation targeted notable threats to public safety throughout Virginia and Washington, D.C. that resulted in the arrests of 132 individuals on criminal and civil violations.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Russell Hott, Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney S. David Schiller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-84.
Mexican Citizen Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Alejandro Olvera-Servin, age 38, and a citizen of Mexico, was sentenced today to time served (163 days in jail) for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
Olvera-Servin admitted as part of his guilty plea that he is a citizen of Mexico, and that he was removed from the United States to Mexico on March 19, 2016 and again on April 27, 2018. On each occasion, Olvera-Servin had been arrested by immigration authorities in Texas after he entered the United States without inspection from Mexico.
On June 19, 2018, he was arrested by a Border Patrol Agent in Mooers, New York, after he illegally entered the United States from Canada by walking across the border approximately 10 miles to the west of the Champlain Port of Entry, thereby avoiding immigration and customs inspection. Olvera-Servin admitted that he returned to the United States without permission following the 2016 and 2018 removals.
Following the sentencing, Olvera-Servin was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Methamphetamine Supplier from Honduras Sentenced to 198 MonthsRead the Press Release
LONDON, Ky. — Wilmer Caballero-Lazo, 26, was sentenced Tuesday, to 198 months in federal prison, by United States District Judge Gregory F. Van Tatenhove, for conspiracy to distribute methamphetamine. Caballero-Lazo is a citizen of Honduras.
Caballero-Lazo pleaded guilty to the methamphetamine charges in May of 2018. The investigation began as a search for stolen firearms and revealed that, between May of 2015 and September of 2016, Caballero-Lazo regularly delivered kilogram quantities of methamphetamine to large-scale drug dealers in the Laurel and Whitley County communities, including Brian Ellis, Richard Walker, Dustin Higginbotham, Michael Shane McCormick, Jr., and Lindsey Johnson. Each of those individuals have previously received federal sentences in connection with their criminal conduct.
Under federal law, Caballero-Lazo must serve 85 percent of his prison sentence. Caballero-Lazo will be deported back to Honduras following service of his sentence.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge for the Louisville Field Division; and Chris Fultz, Manchester Police Chief, jointly made the announcement. The Drug Enforcement Administration, Kentucky State Police, London Police Department, Laurel County Sheriff’s Office, Corbin Police Department, and the Marietta Cobb Smyrna Task Force in Georgia also assisted in the investigation. The United States was represented by Assistant United States Attorney Andrew H. Trimble.
McKeesport Woman Sentenced for Defrauding Social SecurityRead the Press Release
PITTSBURGH, PA - A McKeesport, Pennsylvania resident has been sentenced in federal court to five years of probation, together with four months of home detention, and restitution of $19,289.00 on her conviction relating to Social Security fraud, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence yesterday on Kristin Lucas, aka Kristin Hope Iarrusso, 45, on her conviction of one count of theft of government funds.
According to information presented to the court, between November 2012 and October 2014, Lucas received and converted approximately $19,289.00 in Supplemental Security Income benefits to which she knew she was not entitled. Additionally, on or about April 10, 2013, Lucas knowingly made a false statement material to her right to receive Supplemental Security Income benefits, by falsely stating that she had used $8,400 in Supplemental Security Income benefits paid to her from March 1, 2012 to February 28, 2013 for the care and support of a minor child.
Assistant United States Attorney Adam N. Hallowell prosecuted this case on behalf of the government.
United States Attorney Brady commended the Social Security Administration – Office of Inspector General for the investigation leading to the successful prosecution of Kristin Lucas.
McKeesport Felon Pleads Guilty to Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH, Pa. – A former resident of McKeesport, Pennsylvania, pleaded guilty in federal court to charges of conspiracy to distribute and possession with intent to distribute heroin and cocaine, being a convicted felon in possession of firearms and ammunition, and possession of firearms in furtherance of a drug trafficking crime, United States Attorney Scott W. Brady announced today.
Thomas Thornton, 42, pleaded guilty to four counts before Senior United States District Judge Donetta W. Ambrose. Judge Ambrose scheduled sentencing for April 2, 2019.
In connection with the guilty plea, the court was advised that the FBI received information that Thomas Thornton conspired to distribute drugs with another individual, and that he was also purchasing fentanyl and had several guns. Agents executed a search warrant at Thornton’s McKeesport residence on May 22, 2018. Agents recovered: a 9mm semi-automatic handgun, with a loaded magazine; a .45 caliber handgun, with a loaded magazine; a holster; ammunition; two Airsoft vests; heroin; cocaine; scales and other materials indicative of drug sales; a case of cough syrup; two cellphones; and indicia of residency for Thornton and his co-conspirator.
Thornton admitted to selling drugs after being fired from a good paying job. He admitted that he initially purchased marijuana from a source in California. He later started purchasing cough syrup from Texas after realizing it would be easier for him to sell bottles of cough syrup for a profit. Thornton also admitted that he has purchased heroin, cocaine and ecstasy pills from Texas. Thornton admitted to receiving the 9mm firearm in exchange for 50 stamp bags of heroin.
The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant. Judge Ambrose ordered the defendant to remain detained pending sentencing.
The Federal Bureau of Investigation’s Western Pennsylvania Opioid Task Force conducted the investigation leading to the Indictment in this case.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
Massachusetts State Trooper Pleads Guilty in Overtime Abuse InvestigationRead the Press Release
BOSTON – A retired Massachusetts State Police Trooper pleaded guilty today to collecting over $29,000 in overtime pay that he did not work.
Paul Cesan, 50, of Southwick, who was previously arrested and charged on June 27, 2018, pleaded guilty to one count of embezzlement from an agency receiving federal funds. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for March 12, 2019.
Cesan was a Massachusetts State Police (MSP) Trooper assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. In 2016, Cesan earned $163,533, which included approximately $50,866 in overtime pay.
Cesan was paid for overtime shifts that he did not work at all or from which he left early. Cesan concealed his fraud by submitting fraudulent citations designed to create the appearance that he had worked overtime hours that he had not, and falsely claimed in MSP paperwork and payroll entries that he had worked the entirety of his overtime shifts.
Cesan has admitted collecting $29,287 for overtime hours that he did not work.
The overtime in question involved the Accident and Injury Reduction Effort program (AIRE) and the “X-Team” initiative, which were intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers who were to target vehicles traveling at excessive speeds.
In 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
Cesan is the fourth Trooper to plead guilty as a result of the ongoing investigation. On July 2, 2018, former Trooper Gregory Raftery, 47, of Westwood, pleaded guilty, on Sept. 14, 2018, suspended Trooper Kevin Sweeney, 40, of Braintree, pleaded guilty, and on Oct. 11, 2018, suspended Trooper Gary Herman, 45, of Chester, pleaded guilty. Three others have been charged: former Lieutenant David Wilson, 57, of Charlton; retired Trooper Daren DeJong, 56, of Uxbridge; and suspended Trooper Eric Chin.
Pursuant to the plea agreement, the government will recommend a sentence of between 10 and 16 months in prison. The charge of theft of government funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General, made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit are prosecuting the case.
The details contained in the court documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Manhattan U.S. Attorney Announces Distribution of More Than $695 Million to Victims of Madoff Ponzi SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), announced today that the Madoff Victim Fund established by the Department of Justice began the distribution of $695.4 million in funds forfeited to the United States Government in connection with the Bernard L. Madoff Investment Securities LLC (“BLMIS”) fraud scheme. These funds will be sent to more than 27,000 victims worldwide, the third in a series of payments from the Madoff Victim Fund to victims of the BLMIS fraud that will ultimately total more than $4 billion. Another $5 billion in assets recovered by the U.S. Attorney’s Office are being separately paid to Madoff victims through the BLMIS Customer Fund administered by the Securities Investor Protection Act Trustee.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Bernie Madoff committed history’s largest Ponzi scheme. This Office prosecuted Madoff and others who helped perpetrate his fraud, and we assisted in recovering billions of dollars in proceeds from the fraud. Today’s payment of more than $690 million is this Office’s third installment in a series of distributions that represent our ongoing commitment to find relief for victims of Madoff’s heinous crimes.”
Assistant Attorney General Brian A. Benczkowski said: “Bernie Madoff’s scheme devastated retirement and pension funds, charitable organizations, and thousands of individual investors spread across 49 States, the District of Columbia, and 121 other countries. The payments announced today could not have happened without the prosecutors’ relentless pursuit of proceeds of Madoff’s fraud through civil forfeiture – and, as a result of their efforts and those of the Criminal Division’s Money Laundering and Asset Recovery Section, victims who would not have seen a dime in other compensation programs will now recover more than half of their losses.”
FBI Assistant Director William F. Sweeney Jr. said: “While today’s distribution of funds is indeed significant in scope, we understand no amount of money could ever restore the damage done by Madoff as a result of his selfish behavior and unforgivable financial crimes. To all of his many victims and their families, we realize this gesture may not provide the consolation necessary to remove the pain and suffering you have been brought to bear, but we are hopeful it provides some sense of relief, and we remain committed to achieve justice for all victims of inexcusable financial crimes.”
Since the early 1970s, BERNARD L. MADOFF (“MADOFF”) used his position as Chairman of BLMIS, the investment advisory business he founded, to steal billions from his clients. On March 12, 2009, MADOFF pled guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family, and select members of his inner circle. On June 29, 2009, United States District Judge Denny Chin sentenced MADOFF to 150 years in prison for running the largest fraudulent scheme in history. Judge Chin ordered MADOFF to forfeit $170,799,000,000 as part of MADOFF’s sentence.
The Madoff Victim Fund is funded through recoveries by the U.S. Attorney’s Office in various criminal and civil forfeiture actions, and is overseen by Richard Breeden, the former Chairman of the United States Securities and Exchange Commission, in his capacity as Special Master appointed by the Department of Justice to assist in connection with the victim remission proceedings. The two prior distributions from the Madoff Victim Fund have already returned nearly $1.3 billion to Madoff victims, and this third distribution will increase that total to almost $2 billion.
Of the approximately $4.05 billion that will ultimately be made available to victims through the Madoff Victim Fund, approximately $2.2 billion was collected as part of the civil forfeiture recovery from the estate of deceased MADOFF investor Jeffry Picower. An additional $1.7 billion was collected as part of a Deferred Prosecution Agreement with JPMorgan Chase Bank N.A. for MADOFF-related Bank Secrecy Act violations. Additional funds were collected through criminal and civil forfeiture actions against MADOFF and his co-conspirators, and certain MADOFF investors.
Mr. Berman praised the work of the FBI and the Madoff Victim Fund, and thanked the Money Laundering and Asset Recovery Section of the Department of Justice’s Criminal Division for their assistance.
For more information about the Madoff Victim Fund, compensation to victims of BLMIS, eligibility criteria, and payment information, please visit www.madoffvictimfund.com.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorney Louis A. Pellegrino is in charge of the case.
Luzerne County Man Charged with Maintaining Drug-Involved PremisesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania has announced that Brandon Vitack, age 26, of Monroe Township, Pennsylvania, was charged in a criminal information on November 21, 2018, with maintaining a drug-involved premises.
According to United States Attorney David J. Freed, Vitack is charged in a criminal information with knowingly and intentionally opening and maintaining his residence from approximately October 1, 2017 to December 13, 2017, for the purpose of manufacturing, packaging, distributing, and using controlled substances, specifically, fentanyl, a Schedule II controlled substance.
The charges stem from a joint investigation involving the Federal Bureau of Investigation (FBI) in Scranton, and the Kingston Police Department. United States Attorney Michelle Olshefski is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under the federal statute for maintaining drug-involved premises is 20 years’ imprisonment and a $500,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Louisville Man Sentenced to Eight Years for Distributing MethamphetamineRead the Press Release
COVINGTON, Ky. — Jamel Clay, 24, of Louisville, Kentucky, was sentenced on Thursday, by United States District Judge David Bunning, to eight years in federal prison, for possession with the intent to distribute Methamphetamine.
Clay was indicted in May 2018 and pled guilty in August 2018. According to court documents, Clay supplied approximately ten pounds of methamphetamine to a co-defendant, Michael Hager, over a period of several months. Hager, a Covington resident, was responsible for distributing the methamphetamine in Northern Kentucky. Agents arrested Hager in possession of approximately eight ounces of methamphetamine and a loaded firearm, on March 1, 2018. Agents arrested Clay in possession of approximately 15 ounces of methamphetamine, on March 12, 2018. Hager was sentenced to 144 months in prison, in November 2018.
Under federal law, Clay must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for a term of five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, jointly made the announcement.
The investigation was conducted by the FBI and the Northern Kentucky Drug Strike Force. The United States was represented by Assistant United States Attorney Tony Bracke.
Louisville Felon Sentenced for Possessing 26 guns, 11k Rounds of Ammo and DrugsRead the Press Release
LOUISVILLE, Ky. – United States District Court Judge David J. Hale sentenced Louisville, Kentucky, man, Sukhjit Bains to 63 months in federal prison, followed by three years of supervised release and a $25,000 fine for being a felon in possession of firearms and for possessing methamphetamine with intent to distribute, announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
“If you choose to deal drugs and possess a firearm as a convicted felon in Louisville then be prepared to go to federal prison,” stated U.S. Attorney Russell Coleman.
According to a plea agreement filed in the case, Bains, 44, was arrested on a bench warrant on February 24, 2017, for having escaped a work release program. When arrested, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agents found Bains in possession of a loaded 9mm pistol, and approximately an ounce of methamphetamine. On October 24, 2017, ATF agents executed a search warrant on Bains’ residence and recovered 26 firearms and approximately 11,000 rounds of ammunition. The firearms included fully-automatic weapons, assault rifles, handguns and silencers.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Louisville Metro Police Department investigated the case.
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. This sentencing is part of the Project Safe Neighborhoods Initiative in the Western District of Kentucky.
Lawrence Man Sentenced to 36 Months for Cocaine TraffickingRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that Jose R. Almonte-Tejeda, 40, formerly of Lawrence, Massachusetts, was sentenced to 36 months in prison for possessing over 500 grams of cocaine with intent to distribute.
According to court documents and statements made in court, on April 27, 2018, the New Hampshire State Police’s Mobile Enforcement Team conducted a traffic stop on a vehicle driven by Almonte-Tejeda on I-95 in the area of Hampton Falls, New Hampshire. A subsequent search of the vehicle resulted in the seizure of 832 grams of cocaine from Almonte-Tejeda’s vehicle.
Almonte-Tejeda previously pled guilty on August 23, 2018.
“We are committed to stopping the flow of illegal drugs into New Hampshire,” said U.S. Attorney Murray. “In order to protect the health and safety of our community, we will continue to work closely with New Hampshire State Police, DEA and all of our law enforcement partners to identify and prosecute those who are bringing dangerous drugs into the Granite State.”
“DEA is committed to bring to justice those that distribute cocaine,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Almonte-Tejeda accountable for his crimes but serves as a warning that DEA and its local, state, and federal law enforcement partners will do everything in our power to keep this drug off the streets of New Hampshire.”
This investigation was conducted by the New Hampshire State Police and the Drug Enforcement Administration. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Larose Man Sentenced for Violations of the Federal Gun Control ActRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that TODD DELAUNE, age 54, of New Orleans, was sentenced today to 12 months and 1 day imprisonment followed by 3 years of supervised release by U.S. District Judge Carl J. Barbier for violation of the Federal Gun Control Act.
DELAUNE pleaded guilty as charged to a 1-count indictment stemming from his February 2018 arrrest by detectives of the Lafourche Parish Sheriff’s Office’s for simple assault, telecommunications harassment and threatening a public official. Subsequent to his arrest, a search warrant was executed at DELAUNE’s residence and the following ammunition was discovered and seized: one box of Winchester 12 gauge shotgun shells (8 in box); two full boxes of Winchester 12 gauge shotgun shells (50 rounds), one full box of Federal 12 gauge shotgun shells (25); one hundred and eighty .22 caliber Remington bullets; one full box of Eley .22 caliber bullets (50 rounds); one Promag 50 round .22 caliber magazine; two Eagle 35 round .22 caliber magazines. A review of DELAUNE’s criminal history revealed that he pled guilty on August 7, 2013 to simple battery of his ex-wife (a misdemeanor crime of domestic violence), which prohibits him from possessing firearms and ammunition.
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 safe for everyone. Former Attorney General Jeff Sessions 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, then 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 was launched in 2001.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco and Firearms and the Lafourche Parish Sheriff’s Office. Assistant United States Attorney Michael McMahon is in charge of the prosecution.
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Koreatown Consultant and Ex-California Dept. of Alcoholic Beverage Control Official Plead Guilty in Long-Running Bribery SchemeRead the Press Release
LOS ANGELES – A former official with the California Department of Alcoholic Beverage Control (ABC) and a Koreatown business consultant each pleaded guilty to federal criminal charges today in connection with a long-running scheme where the consultant paid tens of thousands of dollars in bribes to the ABC official in order to gain an unfair financial advantage for his consultancy company.
The two men who pleaded guilty before United States District Judge John A. Kronstadt were:
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Wilbur M. Salao, 46 of Bellflower, a 21-year ABC employee who was a district administrator in the Los Angeles Metro ABC office from 2010 until he left the agency in May 2017; and
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Scott Seo, also known as “Seung Hye Seo” and “Scott Hoon Seo,” 49 of San Pedro, who was employed by the ABC for 15 years before starting his consulting company, Alcoholic Beverage Control LLC (ABC LLC) in 2006.
Salao pleaded guilty to one count of conspiracy, and Seo pleaded guilty to one count of bribery.
According to court documents, Seo admitted paying Salao more than $28,000 in bribes and kickbacks from December 2011 through May 2016. As a long-time ABC official, Salao had the power to award businesses liquor licenses, direct investigations and punish bar owners in the Koreatown neighborhood of the city of Los Angeles.
In return for the bribes – which were usually paid in amounts ranging from $2,000 to $5,000 – Salao directed ABC enforcement operations and disciplinary actions against targeted businesses that Seo selected and expedited the liquor licensing process for Seo’s clients. For example, in December 2011, after the ABC raided a Koreatown establishment, Seo charged the business $60,000 in cash, some of which was used to pay Salao, who issued a temporary license that allowed the establishment to continue operating. Seo also admitted that, between 2014 and 2016, he sent Salao lists of businesses for the ABC to target and included suggested violations, such as operating after hours.
Salao also followed Seo’s direction by altering official documents and delaying the liquor licensing process for Seo’s competitors, according to court documents.
Salao also learned of impending enforcement actions in Koreatown by the ABC and the Los Angeles Police Department and provided information to Seo – including a photograph of an undercover LAPD officer. That information allowed Seo to warn his client, which was able to conceal its own separate illegal activity from police.
Salao’s assistance enriched Seo’s consultancy business by at least $60,000, according to Seo’s plea agreement.
Judge Kronstadt is scheduled to sentence Salao on March 28 and Seo on April 4.
At sentencing, Seo will face a statutory maximum sentence of 10 years in federal prison, and Salao will face a sentence of up to five years.
This case is part of an ongoing FBI investigation. Any member of the public who has knowledge about this case – or who would like to report similar allegations of corruption by public officials – is encourage to contact their local FBI Field Office. In Los Angeles, the FBI can be reached 24 hours a day at (310) 477-6565. Foreign language speakers can be made available.
This case is being prosecuted by Assistant United States Attorney Veronica Dragalin of the Public Corruption and Civil Rights Section.
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Judge sentences man to prison in firearms caseRead the Press Release
BILLINGS—A man who admitted to illegally possessing a firearm was sentenced to federal prison on Thursday, U.S. Attorney Kurt G. Alme said.
U.S. District Judge Susan P. Watters sentenced Charles Jestin McCalister, 34, to 50 months in prison and three years of supervised release.
McCalister pleaded guilty on July 30 to being a prohibited person in possession of a firearm.
An investigation began on April 30, when a Billings Police officer conducted a traffic stop for speeding and observed McCalister, the driver, appear to be putting something under his seat. The officer arrested McCalister on outstanding warrants. McCalister consented to a search of the vehicle and told the officer there was a firearm in it. The officer recovered a 9mm semi-automatic pistol.
McCalister, who has a record of felony and misdemeanor convictions for partner/family member assault and possession of dangerous drugs, was prohibited from possessing firearms.
Assistant U.S. Attorney Tom Godfrey prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.
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Jackson Man Sentenced to 15 Years in Prison under Project EJECT for Being an Armed Career Criminal Possessing a FirearmRead the Press Release
Jackson, Miss – Loucious Collins, 37, of Jackson, was sentenced Tuesday, by U.S. District Judge David C. Bramlette III, to 15 years in prison followed by five years of supervised release for being an armed career criminal in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation (FBI) in Mississippi. Collins was also required to forfeit the firearm.
On June 8, 2017, the FBI assisted the Mississippi Alcohol Beverage Control in executing a search warrant a V Live Club in Jackson. During the search of the business, Collins, an employee of the club, was questioned by a Mississippi Alcohol Beverage Control officer and admitted to being in possession of a firearm and to being a convicted felon. Because Collins has four previous felony convictions for house burglary, one previous conviction for business burglary, and one previous conviction for possession of a deadly weapon while an inmate at the Delta Correctional Facility, he is classified as an Armed Career Criminal under the Federal Sentencing Guidelines. On February 6, 2018, he was charged in a federal indictment with being a convicted felon in possession of a firearm in violation of 18 U.S.C. §922(g)(1). He pled guilty on August 28, 2018.
The Federal Bureau of Investigation and the Mississippi Alcohol Beverage Control investigated the case. It is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is 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. Former 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.
Illegal Alien Convicted of Using Another Person’s Social Security Number and Fraudulent “Green Card” to Get a JobRead the Press Release
A Mexican man who used another person’s social security number and a fraudulent “green card” to get a job was convicted by a jury on November 28, 2018, after a one-day trial in federal court in Cedar Rapids.
Luis Gonzalez-Esparsa, age 45, a citizen of Mexico illegally present in the United States and residing in Cascade, Iowa, was convicted of one count of unlawful use of an identification document and one count of misuse of a social security number. The verdict was returned following about one hour of jury deliberations.
The evidence at trial showed that on June 14, 2018, Gonzalez-Esparsa used someone else’s social security number on employment and tax documents when applying for work in Peosta, Iowa. He also used a fraudulent permanent resident card, also known as a “green card,” to claim he was legally present and authorized to work in the United States. The Alien Registration number on the “green card” had been issued to another person, a female from Mexico.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Gonzalez-Esparsa was taken into custody by the United States Marshal after the verdict was returned and will remain in custody pending sentencing. Gonzalez-Esparsa faces a possible maximum sentence of fifteen years’ imprisonment, a $500,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. Court file information at https://ecf.iand.uscourts.gov/. The case file number is 18-CR-1035.
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Identity Documents Trafficker Arraigned on Identification Fraud and Conspiracy ChargesRead the Press Release
A seller of identity documents was arraigned today, after being extradited from El Salvador, on a superseding indictment charging one count of conspiracy to possess and transfer identity documents, one count of conspiracy to commit human smuggling for financial gain, and 40 counts of aggravated identity theft, in relation to a scheme to traffic the identities of Puerto Rican U.S. citizens and corresponding identity documents. Judge Bruce McGiverin ordered the defendant detained. The detention hearing and arraignment are scheduled for Dec. 11.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Acting Director Ronald D. Vitiello of U.S. Immigration and Customs Enforcement (ICE) and Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service made the announcement.
Jose Armando Pavon Salazar (Pavon), 36, a citizen of Honduras, was arrested in El Salvador in January 2018 on an Interpol Red Notice and extradited to the United States on Nov. 28, to face identify fraud charges in the District of Puerto Rico. Pavon had been a fugitive since March 22, 2012, when a federal grand jury sitting in the District of Puerto Rico returned a 50-count superseding indictment charging Pavon and 52 other defendants with offenses involving a massive identity fraud scheme.
The superseding indictment alleges that between April 2009 and January 2012, Pavon and his co-conspirators operated an extensive black market identity fraud scheme. The superseding indictment alleges that conspirators located in the Savarona area of Caguas, Puerto Rico, (Savarona suppliers) obtained Puerto Rican identities and corresponding identity documents. Conspirators, such as Pavon, in various locations throughout the United States (identity brokers) solicited customers. The identity brokers allegedly sold social security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set. The indictment alleges that identity brokers, including Pavon, ordered the identity documents from Savarona suppliers, on behalf of the customers, by making coded telephone calls, including using terms such as “shirts,” “uniforms” or “clothes,” to refer to identity documents. Specifically, the brokers asked for “skirts” for female customers and “pants” for male customers in various “sizes,” which referred to the ages of the identities sought by the customers.
According to the superseding indictment, the Savarona suppliers generally requested that customers’ initial payments be sent by the identity brokers through a money transfer service to persons whose names were provided by the Savarona suppliers. Savarona suppliers allegedly retrieved the payments from the money transfer service and then sent the identity documents to the brokers using express, priority or regular U.S. mail. The superseding indictment alleges that various conspirators sent or received money and mail parcels. The conspirators frequently confirmed sender names and addresses, money transfer control numbers and trafficked identities via text messaging.
According to the superseding indictment, once the identity brokers received the identity documents, they delivered the documents to the customers and obtained second payments. The brokers generally kept the second payments for themselves as profit. Some identity brokers allegedly assumed a Puerto Rican identity themselves, and used that identity in connection with the trafficking operation.
As alleged in the superseding indictment, the customers generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers allegedly obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.
To date, dozens of persons have been convicted in connection with the scheme.
Trial Attorney Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section is prosecuting the case. The U.S. Attorney’s Office of the District of Puerto Rico is providing assistance in this matter. The Criminal Division’s Office of International Affairs handled the extradition in this matter
The charges in the superseding indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation or who may have information about particular crimes in this case should call the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or use its online tip form at www.ice.gov/tipline.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website at www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html, www.ssa.gov/pubs/10064.html and www.irs.gov/privacy/article/0,,id=186436,00.html.
Idabel Man Sentenced to 66 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nickey Lynn Anderson, age 35, of Idabel, Oklahoma, was sentenced to 66 months’ imprisonment and 3 years supervised release for Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e). The charges arose from an investigation by the Idabel Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about August 5, 2017, within the Eastern District of Oklahoma, the defendant, Nickey Lynn Anderson, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting commerce, a Jimenez, Model JA-25, .25 automatic caliber pistol, serial number 059829, and six rounds G.F.L. (Giuilio Fiocchi, Lecco) .25 automatic caliber ammunition which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “This investigation and prosecution is the result of the continued cooperative approach to public safety taken by law enforcement agencies in the Eastern District of Oklahoma. State, local, tribal and federal investigative and prosecutorial agencies work together to maximize the impact of our limited resources. We best serve our communities and the people who call the Eastern District of Oklahoma home when we have strong working relationships.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney John David Luton represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Honduran National Sentenced for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that Jose Carlos Estrada-Meza, age 26, was sentenced today on a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
U.S. District Judge Jane Triche Milazzo sentenced Estrada-Meza to time served. Estrada-Meza will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
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Honduran Man Pleads Guilty for Illegally Re-Entering United StatesRead the Press Release
ALEXANDRIA, Va. – A citizen of Honduras pleaded guilty today to illegally re-entering the United States after having been deported following a felony conviction.
According to court documents, Omar Enrique Romero-Caceres, 37, illegally re-entered the United States after being convicted of identity fraud in 2007, and illegally re-entered the United States in 2013.
Romero-Caceres pleaded guilty to illegal reentry after deportation or removal and faces a maximum penalty of 10 years in prison when sentenced on Feb. 22, 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Russell Hott, Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge T. S. Ellis III. Special Assistant U.S. Attorney Michelle Tonelli and Assistant U.S. Attorney Ronald L. Walutes Jr. prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-354.
Guatemalan National Man Sentenced for Immigration CrimeRead the Press Release
Defendant had a prior deportation in 2012
BECKLEY, W.Va. – A Guatemalan national man was sentenced to “time-served” after spending over three months federally incarcerated, announced United States Attorney Mike Stuart. Domingo Celestino Pacheco-Us, 37, pleaded guilty on October 4, 2018 to the felony offense of Reentry of a Removed Alien. After the sentencing, Pacheco-Us was immediately remanded by Judge Irene C. Berger into Immigration and Customs Enforcement (“ICE”) custody to begin the commencement of deportation proceedings. Stuart commended the investigative efforts of ICE.
“Far too many immigrants enter this country illegally, knowing that if found, they will be deported pursuant to federal immigration laws,” said United States Attorney Mike Stuart. “We embrace those immigrants who abide by our laws, but will prosecute and deport those who evade our laws.”
On August 15, 2018, Pacheco-Us was found in Ripley, Jackson County, West Virginia by members of ICE after receiving a tip that individuals were in the country illegally and working at a restaurant in Ripley, West Virginia. Pursuant to this investigation, ICE agents approached Pacheco-Us and he surrendered to them, offering a Guatemalan identification document. Agents immediately confirmed that Pacheco-Us was not in the United States legally, and took him into federal custody.
Pacheco-Us fingerprints matched him to a 2012 prior encounter where he was found in South Komelik, Arizona on October 8, 2012 and deported from the United States to Guatemala on October 31, 2012. He illegally reentered the United States prior to his capture in 2018. Pacheco-Us had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Pacheco-Us admitted to ICE agents that he was a Guatemalan citizen and subject to deportation proceedings both in 2012 and also in 2018.
Assistant United States Attorney Erik S. Goes is responsible for the prosecution. United States District Judge Irene C. Berger presided over the hearing.
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Gardiner Man Sentenced to 25 Years for Producing and Possessing Child PornographyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Richard Bailey, 67, of Gardiner, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to 25 years in prison and a lifetime of supervised release for production and possession of child pornography. The defendant pled guilty to these charges on June 18, 2018.
According to court records, law enforcement agents received information that the defendant was uploading images of child pornography to various websites. Based on this information, they obtained a search warrant for the defendant’s home in Gardiner. During the execution of the search warrant, the defendant admitted that agents would find multiple images of child pornography involving underage boys on his electronic devices. The investigation revealed that the defendant produced child pornography by encouraging adults in the Philippines during online chats to engage in sexual activity with children that was videotaped, photographed, and disseminated in real time over the internet. A forensic examination of the defendant’s electronic devices revealed multiple images and videos of child pornography including images obtained from the Philippine sex shows.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Maine State Police Computer Crimes Unit. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Fultondale Doctor Charged with Prescribing Controlled Substances and Healthcare Fraud and Demopolis Pharmacist and Tuscaloosa Sales Representative Indicted for Healthcare FraudRead the Press Release
BIRMINGHAM – A federal grand jury today, in a 103-count superseding indictment, charged a Fultondale doctor with conspiracy to prescribe controlled substances and participating in a healthcare fraud conspiracy with a Demopolis pharmacist and a Tuscaloosa sales representative, announced U.S. Attorney Jay E. Town, DEA Special Agent in Charge Stephen G. Azzam, and FBI Special Agent in Charge Johnnie Sharp, Jr.
PAUL ROBERTS, M.D., 46, of Fultondale, Ala. is charged with multiple counts of conspiring and dispensing controlled substances without a legitimate medical purpose. The drugs Roberts prescribed include Adderall, a drug used to treat attention deficit hyperactivity disorders, Suboxone, a drug used to treat opioid addiction, and oxycodone, an opioid. The indictment charges Roberts with prescribing oxycodone to an individual described as C.H. “in exchange for sexual favors performed by C.H. at various locations.”
Roberts is also charged with participating in a healthcare fraud conspiracy and scheme that involved delegating responsibility for seeing patients with opioid addictions to staff such as his X-ray technician and office manager, but billing Blue Cross Blue Shield of Alabama as though he personally saw the patients. The indictment also charges Roberts, along with STANLEY F. REEVES, 60, of Demopolis, Ala., a pharmacist and owner of F&F Drugs, a pharmacy, and BRETT TAFT, 45, of Tuscaloosa, Ala. with defrauding third-party administrators of health insurance plans of over $10.5 million in fraudulently billed compounded drugs. Reeves is also charged with making false statements to federal agents and with tampering with a witness, and both Reeves and Taft are charged with spending the proceeds of health care fraud.
“The U.S. Attorney’s Office and our law enforcement partners will continue to aggressively pursue doctors who demonstrate such blatant disregard for their patients’ well-being, and to prosecuting individuals who defraud the healthcare insurance plans that exist to help the citizens of this district pay for healthcare,” Town said. “Dope dealers sometimes wear a white coat.”
"DEA is fully committed to the pursuit of any individual who abandons their oath as a medical professional,” Azzam said. “We will continue to work with our law enforcement partners, the medical community and the public to identify and stop those responsible for endangering lives in our communities and bring them to justice.”
The maximum punishment for the dispensing controlled substances charges is 20 years in prison and a $1,000,000 fine. The maximum penalty for health care fraud and conspiracy charges is 10 years in prison and a $250,000 fine. The maximum penalty for the false statement charge is five years in prison and a $250,000 fine. The maximum penalty for the witness tampering charge is 20 years in prison and a $250,000 fine. The maximum penalty for the spending proceeds of healthcare fraud charge is 10 years in prison and a $250,000 fine.
DEA and FBI investigated the cases, which Assistant U.S. Attorneys Austin Shutt and Chinelo Dike-Minor are prosecuting.
An indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
Fraudulent Tax Preparer Sentenced to PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – Faheem Olugbodi, also known as Faheem Abdul Nichols and James Moore, 48, of Grand Rapids, Michigan, was sentenced to 3 and ½ years in federal prison, U.S. Attorney Andrew Birge announced today. Olugbodi pled guilty to conversion of government property for preparing fraudulent tax returns from 2011 through 2013. In his plea agreement, Olugbodi admitted collecting personal information from taxpayers and then reporting false income listed as household employment in order to generate tax refunds based on the Earned Income Tax Credit. Olugbodi acknowledged that he obtained $1,827,450.00 by filing approximately 322 fraudulent tax returns. At the sentencing hearing, the evidence showed that Olugbodi utilized multiple bank accounts, including one in the name of local mosque Baitul Shukur to conceal his fraud scheme.
United States District Judge Gordon Quist directed that Olugbodi pay $1,827.450.00 in restitution and ordered two years of supervised release following the prison term. In imposing the sentence, Judge Quist remarked that there is both "a social cost as well as a financial cost" to such fraud schemes which appear to be on the rise in this district.
"Tax preparers who abuse the Earned Income Tax Credit are just engaged in theft by another name. My office will continue to work closely with IRS Criminal Investigation to limit theft from the U.S. Treasury and to punish those who obtain monies through fraudulent tax filings," said U.S. Attorney Birge. "As the tax filing season approaches, I strongly encourage taxpayers to be wary of utilizing unregistered tax preparers who promise guaranteed refunds. Taxpayers should make sure to get copies of any tax return prepared on their behalf and be sure that all the information, including income and any dependents that are listed, is correct."
Manny Muriel, Special Agent in Charge of the Detroit’s IRS Criminal Investigation, stated, "As stewards of the American taxpayer’s dollars, IRS-CI special agents will act as guardians to protect against tax fraud, particularly when it is a tax preparer who commits the fraud. IRS and in particular Criminal Investigations must protect the integrity of the U.S. tax system.
The case was investigated by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Raymond E. Beckering III handled the prosecution.
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Four St. Louis Police Officers Indicted for Civil Rights Violations and Obstruction of JusticeRead the Press Release
A federal grand jury in St. Louis indicted four St. Louis Metropolitan Police Department (SLMPD) Police Officers for their conduct in connection with the arrest and assault of a fellow SLMPD police officer who was working undercover in downtown St. Louis during last year’s protests following the acquittal of a former SLMPD officer of a first-degree murder charge brought by the State of Missouri relating to the shooting death of a civilian.
The indictment charges Officers Dustin Boone, 35, Bailey Colletta, 25, Randy Hays, 31, and Christopher Myers, 27, with various felony charges, including deprivation of constitutional rights, conspiracy to obstruct justice, destruction of evidence, and obstruction of justice.
“Law enforcement officers have an important duty to protect the members of the communities they serve and to enforce the law,” said Assistant Attorney General Eric Dreiband. “The Justice Department will continue to investigate and prosecute matters involving allegations of federal criminal civil rights violations.”
“These are serious charges and the vigorous enforcement of civil rights is essential to maintaining public trust in law enforcement,” said U.S. Attorney Jeff Jensen. “The SLMPD recognized the importance of this investigation and its leadership has cooperated at every turn. I continue to have great confidence in the brave and honorable men and women of the SLMPD, Chief John Hayden, and Public Safety Director Judge Jimmie Edwards.”
“I wish to commend SLMPD leadership for its cooperation and the support of this investigation. Law enforcement and the public have a common interest in identifying and holding accountable those who dishonor the badge,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “To that end, I am encouraging people to contact the FBI if you are a witness in this case.”
According to the indictment, in the days and weeks that followed the acquittal, which occurred on Sept. 15, 2017, there were protests throughout the City of St. Louis. In anticipation of protests, SLMPD activated its protest-response unit, the Civil Disobedience Team (CDT), detailing more than 200 SLMPD officers to CDT. SLMPD officers assigned to CDT were tasked with controlling the crowd as needed and arresting those individuals for whom there was probable cause to believe that they had committed crimes. Defendants Boone, Colletta, Hays, and Myers were all assigned to CDT and were working in their capacity as SLMPD officers during the protests. The listed victim in the indictment, L.H., a 22-year veteran SLMPD officer, was also working during the protests, but was doing so in an undercover capacity in order to record and document criminal activity so that other SLMPD officers could lawfully arrest individuals who were committing crimes.
Count One of the indictment charges defendants Boone, Hays, and Myers with willfully violating L.H.’s constitutional rights when they used unreasonable force on L.H., actions that resulted in bodily injury to L.H. and included the use of a dangerous weapon: shod feet and a riot baton. The indictment specifically alleges that Boone, Hays, and Myers threw L.H. to the ground and then kicked and struck L.H. while he was compliant and not posing a physical threat to anyone.
Count Two also charges defendants Boone, Hays, and Myers with conspiracy to obstruct justice for conspiring and agreeing to engage in misleading conduct toward witnesses to prevent information about their criminal conduct from reaching federal authorities.
Count Three of the indictment also charges defendant Myers with destruction of evidence for knowingly destroying and mutilating L.H’s cellular phone with the intent to impede, obstruct, and influence the investigation into the arrest and assault of L.H.
Count Four charges defendant Colletta with corruptly attempting to obstruct, influence, and impede federal grand jury proceedings by engaging in a series of misleading assertions and false statements when she testified before the grand jury.
Count One carries a maximum penalty of 10 years in prison. Counts Two, Three, and Four each carry maximum penalties of 20 years in prison. All four counts carry a maximum fine of $250,000.
An indictment is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
This case is being investigated by the St. Louis Division of the FBI and is being prosecuted by Assistant United States Attorney Reginald Harris of the U.S. Attorney’s Office, Special Litigation Counsel Fara Gold, and Trial Attorney Emily Savner of the Department of Justice Civil Rights Division Criminal Section.
Four St. Louis Police Officers Indicted for Civil Rights Violations and Obstruction of JusticeRead the Press Release
Indictment WASHINGTON – A federal grand jury in St. Louis indicted four St. Louis Metropolitan Police Department (SLMPD) Police Officers for their conduct in connection with the arrest and assault of a fellow SLMPD police officer who was working undercover in downtown St. Louis during last year’s protests following the acquittal of a former SLMPD officer of a first-degree murder charge brought by the State of Missouri relating to the shooting death of a civilian.The indictment charges Officers Dustin Boone, 35, Bailey Colletta, 25, Randy Hays, 31, and Christopher Myers, 27, with various felony charges, including deprivation of constitutional rights, conspiracy to obstruct justice, destruction of evidence, and obstruction of justice.
“Law enforcement officers have an important duty to protect the members of the communities they serve and to enforce the law,” said Assistant Attorney General Eric Dreiband. “The Justice Department will continue to investigate and prosecute matters involving allegations of federal criminal civil rights violations.”
“These are serious charges and the vigorous enforcement of civil rights is essential to maintaining public trust in law enforcement,” said U.S. Attorney Jeff Jensen. “The SLMPD recognized the importance of this investigation and its leadership has cooperated at every turn. I continue to have great confidence in the brave and honorable men and women of the SLMPD, Chief John Hayden, and Public Safety Director Judge Jimmie Edwards.”
“I wish to commend SLMPD leadership for its cooperation and the support of this investigation. Law enforcement and the public have a common interest in identifying and holding accountable those who dishonor the badge,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “To that end, I am encouraging people to contact the FBI if you are a witness in this case.”
According to the indictment, in the days and weeks that followed the acquittal, which occurred on Sept. 15, 2017, there were protests throughout the City of St. Louis. In anticipation of protests, SLMPD activated its protest-response unit, the Civil Disobedience Team (CDT), detailing more than 200 SLMPD officers to CDT. SLMPD officers assigned to CDT were tasked with controlling the crowd as needed and arresting those individuals for whom there was probable cause to believe that they had committed crimes. Defendants Boone, Colletta, Hays, and Myers were all assigned to CDT and were working in their capacity as SLMPD officers during the protests. The listed victim in the indictment, L.H., a 22-year veteran SLMPD officer, was also working during the protests, but was doing so in an undercover capacity in order to record and document criminal activity so that other SLMPD officers could lawfully arrest individuals who were committing crimes.
Count One of the indictment charges defendants Boone, Hays, and Myers with willfully violating L.H.’s constitutional rights when they used unreasonable force on L.H., actions that resulted in bodily injury to L.H. and included the use of a dangerous weapon: shod feet and a riot baton. The indictment specifically alleges that Boone, Hays, and Myers threw L.H. to the ground and then kicked and struck L.H. while he was compliant and not posing a physical threat to anyone.
Count Two also charges defendants Boone, Hays, and Myers with conspiracy to obstruct justice for conspiring and agreeing to engage in misleading conduct toward witnesses to prevent information about their criminal conduct from reaching federal authorities.
Count Three of the indictment also charges defendant Myers with destruction of evidence for knowingly destroying and mutilating L.H’s cellular phone with the intent to impede, obstruct, and influence the investigation into the arrest and assault of L.H.
Count Four charges defendant Colletta with corruptly attempting to obstruct, influence, and impede federal grand jury proceedings by engaging in a series of misleading assertions and false statements when she testified before the grand jury.
Count One carries a maximum penalty of 10 years in prison. Counts Two, Three, and Four each carry maximum penalties of 20 years in prison. All four counts carry a maximum fine of $250,000.
An indictment is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
This case is being investigated by the St. Louis Division of the FBI and is being prosecuted by Assistant United States Attorney Reginald Harris of the U.S. Attorney’s Office, Special Litigation Counsel Fara Gold, and Trial Attorney Emily Savner of the Department of Justice Civil Rights Division Criminal Section.
Fort Peck Reservation meth trafficker sentenced to prisonRead the Press Release
GREAT FALLS—A Wolf Point woman convicted of trafficking methamphetamine on the Fort Peck Reservation was sentenced on Wednesday to 41 months in prison and four years supervised release, U.S. Attorney Kurt G. Alme said.
Taurean Grandchamp, 31, pleaded guilty on Aug. 23 to possession with intent to distribute meth.
U.S. District Judge Brian M. Morris presided at sentencing.
In October 2017 and in January, the Montana Highway Patrol made two traffic stops of vehicles with Arizona license plates on the reservation and near Wolf Point. The driver and passenger were the same in both stops. Drug information from those stops led law enforcement officers to Grandchamp, who admitted to distributing meth on the reservation. She told law enforcement that she was provided with one pound of meth for distribution in 2017. Other individuals also described Grandchamp selling meth with the driver and passenger of the vehicles that were stopped by the MHP.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI and the Fort Peck Department of Law and Justice.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.
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Former Owner of Dominican Republic Bank Sentenced to Three Years in Prison for Money Laundering ConspiracyRead the Press Release
A former owner of Banco Peravia bank in the Dominican Republic was sentenced to three years in prisontoday for his role in a billion-dollar money laundering scheme involving currency exchange.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, Special Agent in Charge Mark B. Dawson of HSI's Houston Field Office, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s (FDIC) Washington, D.C. Office made the announcement.
Gabriel Arturo Jimenez Aray (Jimenez), 50, a Venezuelan citizen residing in Chicago, Illinois and former owner of Banco Peravia bank, was sentenced today to three years in prison by U.S. District Judge Robin L. Rosenberg of the Southern District of Florida. Jimenez pleaded guilty under seal on March 20, 2018 to one count of conspiracy to commit money laundering. As part of his guilty plea, Jimenez admitted that, as part of the scheme, he conspired with co-conspirator Raul Gorrin Belisario, 50, and others to acquire Banco Peravia, through which he helped launder bribe money and scheme proceeds. Jimenez and his co-conspirators made the decision to use Banco Peravia to pay bribes to Venezuelan government officials in exchange for contracts to conduct currency exchange schemes and to launder the money obtained from running those currency exchange schemes. Jimenez facilitated illegal transactions and bribe payments to foreign officials and others via bank issued credit cards, cash disbursements, wire transfers and other financial transactions, he admitted.
HSI Miami, HSI Houston, HSI Boston, FBI Miami and the FDIC investigated this case. This case is being prosecuted by Trial Attorneys Vanessa Sisti Snyder, Paul A. Hayden and John-Alex Romano of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Michael B. Nadler and Nalina Sombuntham of the Southern District of Florida. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Policía Nacional (Spanish National Police) also provided significant assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former New York City Human Resources Administration Employee and Two Others Charged with Stealing Hundreds of Thousands in Hra FundsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Lesley Brovner, Acting Commissioner of the New York City Department of Investigation (“DOI”), and James D. Robnett, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today that ELIANA BAUTA, GERALDINE PEREZ, and ERIC GONZALES were charged in Manhattan federal court with six counts related to their theft of over $300,000 in funds from the New York City Human Resources Administration (“HRA”). BAUTA perpetrated the offenses in her capacity as an HRA employee. PEREZ is also charged with a separate fraudulent scheme involving over $90,000 of stolen or fraudulently issued Treasury checks. BAUTA was arrested by the U.S. Marshals in Florida, and was presented in the United States District Court for the Middle District of Florida this afternoon. PEREZ and GONZALEZ will appear tomorrow for presentment in the Southern District of New York before Magistrate Judge Gabriel W. Gorenstein.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As an HRA employee, Eliana Bauta was supposed to help New Yorkers in need. Instead, she and her co-defendants allegedly helped themselves, stealing hundreds of thousands in emergency benefits funds. As today’s arrests make clear, we will not tolerate alleged abuses of trust in City agencies, and we remain committed to ensuring that federal and local funds go to the intended recipients, not the pockets of unscrupulous employees and their families and friends.”
IRS-CI Special Agent-in-Charge Robnett said: “When stolen identities are used to file fraudulent tax returns, it robs all of us. IRS-CI will investigate these alleged crimes and protect this country’s tax administration.”
According to the allegations in the Complaint filed today in Manhattan federal court:[[1]]
HRA is an agency of the City of New York responsible for administering the majority of the City’s public assistance programs. Among other things, HRA provides temporary, emergency cash assistance to individuals and families with social service and economic needs to assist them in reaching self-sufficiency. The emergency assistance is funded by the federal government as well as by New York State and City.
Since in or about 2015, DOI has been investigating two related schemes in which an HRA employee – ELIANA BAUTA – defrauded HRA and the City of New York by using her position to commit public assistance fraud. BAUTA worked as a Job Opportunity Specialist for HRA from approximately January 2008 to on or about May 23, 2018. As a Job Opportunity Specialist, BAUTA was at various points responsible for interviewing benefits applicants, compiling and submitting applicants’ paperwork, and disbursing applicants’ benefits.
In the first of the two schemes, BAUTA is alleged to have caused the fraudulent issuance of emergency benefits funds to relatives and acquaintances, including GERALDINE PEREZ and ERIC GONZALES, among others, who in truth and in fact did not qualify for those funds. For example, BAUTA altered a police report submitted by an actual HRA client by changing the name of the victim to a family member’s name, and then entered the doctored report into HRA systems in support of a request for benefits to be issued to that family member. On another occasion, BAUTA submitted a request for emergency benefits to be issued to an individual after an alleged disaster, but no such disaster had occurred, and the payments were intended to repay that individual for putting a supernatural curse on BAUTA’s ex-boyfriend. Both PEREZ and GONZALEZ were knowing recipients of such fraudulently issued funds and shared the proceeds with BAUTA.
In the second scheme, BAUTA is alleged to have obtained access to and misappropriated emergency benefits checks issued to actual HRA clients. Instead of providing the checks to the legitimate clients in need of emergency funding, BAUTA gave them to PEREZ and GONZALES, among other of BAUTA’s relatives and associates, who deposited the checks in their own bank accounts and withdrew the funds, and then shared the proceeds with BAUTA. In total, the two schemes resulted in losses to HRA of at least $309,000 in public funds.
In addition to obtaining stolen HRA checks into her bank account and the bank accounts of family members, PEREZ is also alleged to have deposited or caused to be deposited into these same accounts improperly obtained United States Treasury checks that were issued to other individuals as tax refunds. In total, 23 such checks worth over $91,000 were deposited into bank accounts of PEREZ and her family members and associates. PEREZ then split the proceeds with a tax preparer who assisted in the scheme.
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ELIANA BAUTA, 35, GERALDINE PEREZ, 60, and ERIC GONZALES, 26, all of the Bronx, New York, are each charged with one count of conspiracy to commit federal program theft, which carries a maximum sentence of five years in prison; two counts of federal program theft, each of which carries a maximum sentence of 10 years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison. BAUTA is also charged with one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison. PEREZ is also charged with one count of receiving stolen government money or property, which carries a maximum sentence of 10 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Berman praised the investigative work of DOI and the IRS, and noted that the investigation is continuing.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Paul Monteleoni and Catherine Ghosh are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former KC Paramedic Pleads Guilty to Stealing Fentanyl, Morphine from AmbulancesRead the Press Release
KANSAS CITY, Mo. – A former Kansas City, Mo., Fire Department paramedic pleaded guilty in federal court today to stealing fentanyl and morphine from ambulances for his own personal use.
Michael L. Fostich, 37, of Kansas City, Mo., pleaded guilty before U.S. District Judge Roseann Ketchmark to obtaining a controlled substance (fentanyl and morphine) by misrepresentation, fraud, forgery, deception and subterfuge.
Fostich was employed at the Kansas City Fire Department (KCFD) as a paramedic from August 2014 to Dec. 11, 2016. Fostich had access to fentanyl and morphine, which were stored in sealed narcotics boxes and locked in safes on KCFD ambulances. Each sealed narcotics box contained two vials of fentanyl, each containing 100 micrograms of liquid fentanyl, and two syringes of morphine, each containing 10 milligrams of liquid morphine. Fentanyl and morphine are opioid narcotics used to treat pain. As a paramedic, Fostich was able to unlock the electronic safe and open the sealed narcotics boxes in order to administer controlled substances to patients, if necessary.
By pleading guilty today, Fostich admitted that he stole fentanyl and morphine from the ambulances for his own personal use. Fostich also admitted that he prepared patient care records and state reporting forms that contained misrepresentations regarding his use of fentanyl and morphine.
From Jan. 1 to Dec. 11, 2016, Fostich reported he was responsible for the use, administration, or wasting of 806 doses of fentanyl, which accounted for approximately 39 percent of all of the KCFD’s total reported use, administration and wasting of fentanyl during that period of time. Fostich also reported that he was responsible for the use, administration, or wasting of 636 doses of morphine during that time, which accounted for approximately 63 percent of all of the KCFD’s total reported use, administration or wasting of morphine during that period of time. The KCFD employed approximately 350 paramedics during this time.
Under federal statutes, Fostich is subject to a sentence of up to four years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Jess E. Michaelsen and Jeffrey Q. McCarther. It was investigated by the U.S. Food and Drug Administration’s Office of Criminal Investigation, the Kansas City, Mo., Police Department, and the FBI.
Former Haitian Political Candidate Pleads Guilty to Cocaine Trafficking in South FloridaRead the Press Release
On November 20, 2018, Vincent Casseus, a former political candidate in Haiti, pled guilty in South Florida to possession with intent to distribute 500 grams or more of cocaine.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami Field Office made the announcement.
Casseus, a/k/a “Angelo,” 44, of Jérémie, Haiti, is scheduled to be sentenced by U.S. District Judge Kathleen M. Williams on January 30, 2019, in Miami, Florida (Case No. 18-CR-20470). He faces a mandatory minimum sentence of 5 years in prison.
According to the court docket, including the agreed upon factual proffer, Casseus led a drug-trafficking organization that used drug mules to import cocaine into the United States, concealed in commercial-grade tomato paste cans. Law enforcement intercepted cocaine from Casseus’s organization in south Florida and Port-Au-Prince, Haiti, including on November 6, 2016, when FBI agents seized approximately 2,999 grams of cocaine from Casseus and his co-defendant, Vito Antenor, in Miami, Florida.
Casseus was extradited to the United States, from Haiti, for prosecution.
Antenor, 40, of Miami-Dade, pled guilty to possession with intent to distribute 500 grams or more of cocaine on September 13, 2018, and is scheduled to be sentenced by U.S. District Judge Williams on January 11, 2019.
This investigation and prosecution was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force. The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies who, cooperatively, target the region’s drug-trafficking and money laundering organizations. The South Florida HIDTA is funded by the Office of National Drug Control Policy, which sponsors a variety of initiatives focused on the nation’s illicit drug trafficking threats.
This prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. She also thanked Homeland Security Investigations, the Miami-Dade Police Department, Doral Police Department, the United States Embassy in Port au Prince, Haiti, the U.S. Drug Enforcement Administration Country Attaché in Haiti, the U.S. Department of State's Diplomatic Security Service and the Haitian National Police. This case is being prosecuted by Assistant U.S. Attorney Jonathan K. Osborne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Executive Director of Military Charity Found Guilty of Fraud and Tax EvasionRead the Press Release
WASHINGTON – Patricia Pauline Driscoll, the former executive director of the Armed Forces Foundation, was found guilty by a jury today of charges stemming from a scheme in which she stole from the non-profit charity, defrauded donors, and lied to the Internal Revenue Service and the public about her salary and benefits.
The announcement was made by U.S. Attorney Jessie K. Liu, Matthew J. DeSarno, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, and Special Agent in Charge Kelly R Jackson of the Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Field Office.
Driscoll, 40, of Ellicott City, Maryland, was found guilty of two counts of wire fraud and two counts of tax evasion, all federal offenses, and one count of first-degree fraud, a District of Columbia offense. The verdict followed a trial in the U.S. District Court for the District of Columbia. The Honorable Richard J. Leon scheduled sentencing for a date to be determined in mid-March, 2019.
According to the government’s evidence, until July 2015, Driscoll was the executive director of the Armed Forces Foundation, a tax-exempt non-profit charity based in Washington, D.C. The foundation’s stated mission was to protect and promote the physical, mental, and emotional wellness of military service members, veterans, and their families.
While Driscoll was the executive director, in its promotions and requests for money, the Armed Forces Foundation claimed that 95% of all donations went directly to military members and their families through the charity’s programs. As a “highly compensated individual,” Driscoll’s salary and benefits were required to be disclosed on annual reports (called “Form 990”) to be filed each year with the IRS. These publicly available documents are often used by charity watch groups and donors to judge worthiness of the charity and by the IRS to determine whether the organization was operating with IRS law and regulations.
According to the evidence, Driscoll caused false reports to be filed on the Form 990s in a number of ways. For example, she failed to include the fact that she received commissions from fundraising, the amounts of commissions that she received from fundraising, and the other benefits that she received. Driscoll also falsely categorized and caused others to falsely categorize expenses in the Armed Forces Foundation’s books and records as being for the benefit of the veterans, troops, and their families, when, in fact, they were for her own private benefit. Driscoll also concealed from the foundation’s accountants the money she took from the charity, such as rent that was paid for the use of office space in a building that she co-owned.
Additionally, Driscoll falsely reported and caused others to falsely report the amount of donations received by the foundation on Forms 990, by inflating the amounts of donations and incorrectly listing the types of donations. According to the evidence, she sent false and fraudulent Forms 990 to members of the foundation’s Board of Directors and to the IRS, and caused to be published Forms 990, containing false and fraudulent information.
The jury found that Driscoll took the foundation’s money for her own personal use and to pay her for-profit business expenses. The tax evasion charges are for tax years 2012 and 2013.
The wire fraud charge carries a statutory maximum of 20 years in prison. Tax evasion carries a statutory maximum of five years. First-degree fraud carries a statutory maximum of 10 years in prison. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
In announcing the verdicts, U.S. Attorney Liu, Special Agent in Charge DeSarno, and Special Agent in Charge Jackson commended the work performed by Special Agents from the FBI and Special Agents and Revenue Agents from the IRS. They also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Yvonne Bryant; Victim/Witness Services Coordinators Tonya Jones and Katina Adams-Washington; Supervisory Paralegal Specialist Tasha Harris; Paralegal Specialists Diane Brashears and Amanda Rohde; Forensic Accountant Bryan Snitselaar; Assistant U.S. Attorney Diane Lucas; former Paralegal Specialists Christopher Toms, Corinne Kleinman, and Kaitlyn Kruger; Litigation Technology Supervisor Leif Hickling; former Litigation Technology Supervisor Josh Ellen, and David Goodhand, Special Counsel to the U.S. Attorney, who provided midtrial legal research and writing.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Virginia Cheatham, Kathryn Rakoczy, and Derrick Williams, who investigated and prosecuted the case.
Former Cheyenne Resident Sentenced for Bank Fraud, Possession of Stolen Mail, and Aggravated Identity TheftRead the Press Release
United States Attorney Mark A. Klaassen announced that former Cheyenne resident Dawn Marie Wheeler, 51, was sentenced on November 26, 2018, to serve consecutive prison sentences of 27 months and 24 months, respectively, after engaging in a mail theft, bank fraud, and aggravated identity theft scheme. United States District Court Judge Alan B. Johnson imposed the sentences. After serving her prison sentences, Wheeler will be under court-ordered supervision for three years. The court also ordered Wheeler to pay $300 in special assessments and make restitution to the victims of her conduct. The court has not yet determined the amount of restitution.
Between November of 2017 and February of 2018, Wheeler and various associates committed a spree of mail thefts in Laramie County, Wyoming. Along with stealing mail from dozens of postal customers, Wheeler and her associates stole identities, opened unauthorized accounts, made unauthorized deposits and withdrawals, forged stolen checks, and engaged in other related illegal activity. The Laramie County Sheriff’s Office, Cheyenne Police Department, and United States Postal Inspection Service investigated the mail theft scheme. With the assistance of various concerned citizens, the investigators identified Wheeler and her associates.
"The United States Department of Justice and my office are committed to defending the integrity of the United States Mail," said U.S. Attorney Klaassen. "Any theft of mail, with or without monetary loss, is a federal felony punishable by up to five years in prison. My office will continue to prosecute those who steal mail in the District of Wyoming."
"The U.S. Postal Inspection Service would like to thank the diligent witnesses in this case who reported suspicious activity involving the U.S. Mail," said Lesley Allison, Acting Inspector-in-Charge of the Denver Division. "Along with the quick response from local law enforcement, the actions of the victims and witnesses in this case allowed the Postal Inspector to quickly identify these defendants, who were responsible for stealing mail from numerous victims. As we enter into the busy holiday mailing season," Ms. Allison said, "this sentence marks a great example of what can happen when the public and law enforcement work together with Postal Inspectors to stop mail theft in our communities."
Ms. Allison reminds the public to call 911 if they see suspicious activity involving the U.S. Mail. The public can also reach the U.S. Postal Inspection Service by dialing its 24/7 hotline, 1-877-876-2455, and asking for a "Representative." Finally, the public can report crimes involving the mail via the Inspection Service website: https://postalinspectors.uspis.gov/. The Inspection Service takes each report of mail theft seriously, and works closely with local law enforcement to identify those responsible for such crimes.
Former Autonomy CEO Charged with Wire FraudRead the Press Release
SAN FRANCISCO – Today, a federal grand jury indicted Michael Richard Lynch, the former Chief Executive Officer (“CEO”) of Autonomy Corporation plc (“Autonomy”), with conspiracy to commit wire fraud and multiple counts of wire fraud, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. Stephen Keith Chamberlain, Autonomy’s former Vice President for Finance, was also indicted today in the same indictment for the same offenses.
According to the indictment, Lynch, 53, and Chamberlain, 46, both citizens and residents of the United Kingdom, allegedly engaged in a scheme to defraud purchasers and sellers of Autonomy securities, including the Hewlett-Packard Company, about the true performance of Autonomy’s business, its financial condition, and its prospects for growth.
Prior to October 2011, Autonomy was a company incorporated in the United Kingdom that maintained dual headquarters in San Francisco and Cambridge. In 2010, about 68% of Autonomy’s reported revenues came from the United States and other countries in the Americas. The case involves the acquisition by Palo Alto-based Hewlett-Packard Company and Hewlett-Packard Vision B.V., a wholly-owned subsidiary of HP (collectively “HP”), of Autonomy. On August 18, 2011, HP entered into an Offer Agreement with Autonomy and publicly announced its offer to acquire Autonomy for approximately $11 billion. On October 3, 2011, HP’s acquisition of Autonomy closed and HP acquired control of Autonomy.
According to the Indictment, between 2009 and 2011, Lynch and Chamberlain, and other co-conspirators, (1) artificially inflating Autonomy’s revenues by backdating written agreements to record revenue in prior periods; recording revenue on contracts that were subject to side letters or other contingencies that impacted revenue recognition; and improperly recorded revenue for reciprocal or roundtrip transactions; (2) made false and misleading statements to Autonomy’s independent auditor about transactions allegedly supporting the recognition of revenue and other items in Autonomy’s financial statements; (3) made false and misleading statements to market analysts covering Autonomy about Autonomy’s true performance and the nature and composition of its products, revenues and expenses; (4) made false and misleading statements to Autonomy’s regulators in response to inquiries about its financial statements; (5) made false and misleading statements that Autonomy was a so-called “pure software” company while concealing the fact that Autonomy engaged in hidden, loss-making resales of hardware separate from its sale of appliances; (6) made false and misleading statements about Autonomy’s alleged sales of original manufactured equipment or “OEM” licenses; and (7) intimidated, pressured and paid off persons who raised complaints about or openly criticized Autonomy’s financial practices and performance.
As part of the alleged scheme to defraud, Autonomy issued materially false and misleading quarterly and annual financial statements which the defendants allegedly provided to HP during the time that HP was considering whether to purchase Autonomy. The indictment alleges that Lynch and Chamberlain caused Autonomy to make materially false and misleading statements directly to HP regarding Autonomy’s financial condition, performance, and business during the negotiations between HP and Autonomy leading up to the August 18, 2011 acquisition announcement. Allegedly, the defendants, and their co-conspirators, made false and misleading statements about the nature of Autonomy’s products, concealed Autonomy’s non-appliance hardware sales, and made other false and misleading statements during HP’s “due diligence” of Autonomy.
In sum, the indictment charges Lynch and Chamberlain with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and thirteen (13) counts of wire fraud, in violation of 18 U.S.C. § 1343. The indictment also includes asset forfeiture allegations.
No federal court appearance has yet been scheduled for the defendants.
The indictment filed today merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of twenty (20) years in prison, and a fine of $250,000, plus restitution, for each count of wire fraud and for the conspiracy count. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Robert S. Leach, Adam A. Reeves, and William Frentzen are prosecuting the case with the assistance of Beth Margen, Phillip Villanueva, and Bridget Kilkenny. The prosecution is the result of a multi-year investigation involving the FBI and the United States Securities and Exchange Commission.
Florida Man Sentenced to Federal Prison for Failing to Register as a Sex OffenderRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that U.S. District Judge John W. deGravelles sentenced HENRY ALLEN FOWLER, age 52, of Florida, to 24 months in federal prison following his conviction for failing to register in Louisiana as a sex offender. The Court also sentenced FOWLER to five years of supervised release following imprisonment.
In 2004, FOWLER was convicted of a sexual offense in the State of Florida. As a result of this conviction, FOWLER was classified as a Tier III sex offender, and was required to register as a convicted sex offender for life, which registration must be updated quarterly. FOWLER last registered with the State of Ohio and indicated that he resided in Akron, Ohio. FOWLER was due to update his registration in Ohio in March 2018, but failed to do so. As a result of this failure, a State warrant was issued for FOWLER’s arrest in Ohio.
The defendant left Ohio and eventually moved to Baton Rouge, Louisiana. Shortly thereafter, law enforcement officers conducted a routine traffic stop of a vehicle in which FOWLER was a passenger. During this traffic stop, law enforcement officers learned that FOWLER had a warrant for his arrest from the State of Ohio. At the time of this encounter, the defendant had been residing in Baton Rouge, Louisiana, but he had not updated his registration in Ohio or registered in Louisiana.
U.S. Attorney Fremin stated, “We take seriously our obligation to make our communities safer and will not tolerate unregistered sex offenders crossing state lines and concealing prior criminal behavior in order to avoid their notification responsibilities. I want to thank our prosecutors and the United States Marshal Service for bringing this offender to justice.”
“The U.S. Marshals Service is committed to ensuring convicted sex offenders comply with their registration requirements and keeping our community safe. As in this case, working together with all levels of law enforcement is a key component in that effort. When offenders like Fowler travel across state lines and try to avoid registering, we will not stop searching for them until they are in handcuffs,” Acting United States Marshal Randy L. Breckwoldt stated.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the United States Marshals Service with substantial assistance from the Baton Rouge Police Department. It is being prosecuted by Assistant United States Attorney Jamie Flowers.
Florida Lobster Fisherman Pleads Guilty to Illegal Harvesting ActivitiesRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and M. L. Goodro, Superintendent of Biscayne National Park announced that Alfredo Sardinas-Garcia, 43, of Miami, pled guilty yesterday to violating the Lacey Act by illegally harvesting spiny lobster in violation of the laws and regulations applicable to the waters of Biscayne National Park.
According to the court record, including the Joint Factual Statement agreed to by the parties, and statements in Court, the “SILVITA” is a Florida commercial fishing vessel, owned and operated by defendant Deep Atlantic, Inc. Sardines-Garcia was employed by Deep Atlantic, Inc., as the master in charge of the day-to-day operations and fishing activities of the vessel.
On August 22, 2018, at 3:25 p.m., the SILVITA was within the boundaries of Biscayne National Park when it was boarded and inspected by National Park Service Officers. Sardinas-Garcia was the captain of the vessel, which had concluded commercial fishing for the day and was returning to the dock. The vessel held a Special Product License and Crawfish Endorsement, issued by the Florida Fish and Wildlife Conservation Commission, allowing it to conduct lobstering activities under Florida law, including in Biscayne National Park and for the saltwater products harvested to be sold commercially.
A holding pen/live well full of live spiny lobster was in plain view on the vessel. Measurement of the whole lobster revealed that 28 were less than the legally required carapace length of 3 inches. Examination of other compartments on the vessel, revealed a red bag containing wrung spiny lobster tails, hidden in the forwarded bulkhead area, underneath life jackets. The bag contained 231 wrung spiny lobster tails, of which 209 were undersized, and 2 egg-bearing wrung lobster tails. The inspection also revealed 22 Florida stone crab claws on the vessel. This saltwater product was illegally possessed due to the closure of the harvesting season on May 16, 2018 until October 15, 2018.
The Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire, or purchase any fish or wildlife or plant taken, possessed, transported, or sold in violation of any law, treaty, or regulation of the United States (Title 16, United States Code, Sections 3372(a)(1) and 3373(d)(1)(B)). It is illegal under the laws and regulations of Florida to possess wrung lobster tails on a vessel while on the waters of the State; to possess egg-bearing spiny lobster; and to possess undersized spiny lobster (Florida Administrative Code, Sections 68B-24.003(4), (1) and 24.007(1)). Federal regulations mandate that fishing in National Park waters must be conducted in accordance with the laws and regulations of the State within which the boundaries of the Park are located (Title 36, Code of Federal Regulations, Section 2.3(a)). The waters of Biscayne National Park are within the waters of the State of Florida.
Sardinas-Garcia faces a possible prison term of up to five years, followed by a three-year period of supervised release. Additionally, he faces a potential criminal fine of up to $250,000. He is scheduled to be sentenced by U.S. District Judge Kathleen M. Williams on February 7, 2019, at 2:00 p.m. in Miami.
The case against the co-defendant, Deep Atlantic-Inc., a Florida-based corporation is pending before the Court. An information is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the National Park Service Officers at Biscayne National Park who led the investigation into the illegal harvesting of the spiny lobster and other marine resources. This case is being prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald of the Economic & Environmental Crimes Section and Alison Lehr of the Asset Forfeiture Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Florence Man Sentenced to Federal Prison for Role in Multi-State Scheme to Manufacture and Pass Counterfeit MoneyRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Michael James Bembry, 28, of Florence, South Carolina, was sentenced to two years in federal prison for conspiracy to manufacture and pass counterfeit money and manufacturing counterfeit money.
Evidence presented to the court showed that Bembry was involved in a conspiracy to manufacture and pass counterfeit $100 and $50 bills in multiple states, including South Carolina, North Carolina, Pennsylvania, and New Jersey. This conspiracy, which began in 2015, included at least nine defendants who were responsible for making and passing over $100,000 in counterfeit money.
Bembry and other conspirators manufactured counterfeit money at several residences in Florence, South Carolina, and in a room at the Roosevelt Hotel in Philadelphia, Pennsylvania. They produced counterfeit $100 bills on genuine currency paper, then visited various local businesses, where they would purchase small items or services with the counterfeit $100 bills in order to obtain genuine currency as change.
In May 2015, multiple counterfeit $100 bills, a genuine $100 “parent note,” a printer, and other counterfeiting materials were seized by local law enforcement from a car Bembry was driving in Egg Harbor Township, New Jersey. Later, in July 2016, Bembry and a codefendant passed a counterfeit $100 bill at a business in Bryson City, North Carolina. To date, seven of Bembry’s co-conspirators have pled guilty to federal crimes for their role in this counterfeiting scheme.
United States District Judge R. Bryan Harwell sentenced Bembry to 24 months in federal prison, to be followed by 3 years of court-ordered supervision. There is no parole in the federal system.
The case was investigated by agents of United States Secret Service with the assistance of the Florence County Sheriff’s Office, the Florence Police Department, the Egg Harbor Township Police Department, and the Bryson City Police Department. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case with the assistance of the United States Attorney’s Office for the Eastern District of Pennsylvania.
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Florence Man Sentenced to 16 Years for Distributing Heroin and CocaineRead the Press Release
COVINGTON, Ky. — Donald Conway, 42, of Florence, Kentucky, was sentenced on Thursday, by United States District Judge David Bunning, to 16 years in federal prison for possessing heroin and cocaine with the intent to distribute the drugs.
Conway was convicted in August 2018, following a bench trial. According to testimony at trial, Covington Police conducting a traffic stop, finding baggies containing more than 25 grams of cocaine and more than 23 grams of heroin, packaged for sale. Based upon prior felony convictions for assault and drug trafficking, Conway qualified as a “career offender” under the United States Sentencing Guidelines, which subjected him to an increased sentence.
Under federal law, Conway must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for a term of five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James (Robert) Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Robert Nader, Chief of the Covington Police Department, jointly made the announcement.
The investigation was conducted by the FBI and the Covington Police Department. The United States was represented by Assistant United States Attorney Tony Bracke.
Felon Sentenced to over 8 Years in Prison for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Jeremy T. Walker, of Jackson, was sentenced today, before United States Senior District Judge William H. Barbour, Jr., to 97 months in prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives. Walker was also ordered to pay a $1,500 fine.
Walker was previously found guilty following a two day jury trial that began on August 27, 2018, in Jackson.
On February 5, 2013, Deputy Marshals with the United States Marshals Service, Gulf Coast Regional Task Force, were attempting to execute an outstanding arrest warrant for sale of a controlled substance in Hinds County. Deputy Marshals located Walker at his mother’s residence hiding in the attic. While the deputies were apprehending Walker, a Rohm, Draco model, 7.62 x 39mm rifle was recovered from the top of the refrigerator. Walker admitted to purchasing the firearm. Walker has been previously convicted of a felony for possessing a controlled substance in 2010 in Hinds County.
This case investigated by the United States Marshals Service, Gulf Coast Regional Task Force ,the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hinds County Sheriff’s Department. AUSA Erin Chalk is prosecuting the case.
Felon Convicted of Threatening U.S. Postal Service Letter Carrier and Firearm Possession in MilwaukeeRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that on November 27, 2018, a jury found David E. Polnitz, Jr., (age: 39) of Milwaukee, guilty of illegally possessing a firearm and forcibly assaulting, impeding, intimidating or interfering with a United States Postal Service (USPS) Letter Carrier.
On June 27, 2017, a USPS Letter Carrier was attempting to deliver mail when Polnitz’s unrestrained pit bull charged the Letter Carrier. Fearing for his safety, the Letter Carrier followed procedure and sprayed the pit bull with USPS-issued dog spray. Polnitz upon being notified by his spouse of the incident, ultimately pointed a Taurus, model PT738, semi-automatic .380 pistol at the Letter Carrier. The Letter Carrier identified Polnitz, among other ways, by his distinctive “Pepsi blue” contact lenses.
Polnitz was previously convicted of second degree recklessly endangering safety and robbery with use of force. He is awaiting sentencing by United States District Court Judge Pamela Pepper. He faces a maximum term of imprisonment of 30 years, a maximum term of supervised release of six years, and a maximum fine of $500,000 for being a convicted violations of Title18 United States Code §§ 111, 922(g)(1), and 924(a)(2).
“Letter Carriers should not have to fear violence as they deliver mail in our neighborhoods,” said United States Attorney Krueger. “The Department of Justice will aggressively prosecute anyone who threatens harm to federal employees. We commend the law enforcement agencies for their excellent work in bringing justice to this matter.”
“The safety and protection of postal employees is one of our highest priorities,” said Inspector in Charge Craig Goldberg of the Chicago Division of the U.S. Postal Inspection Service. “The guilty convictions in this case send a strong message that threatening or intimidating a postal worker will not be tolerated.”
The case was investigated by the Milwaukee Police Department and the U.S. Postal Inspection Service and prosecuted by Assistant United States Attorneys Zachary Corey and Benjamin Taibleson.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Federal Indictment Charges Suburban Man with Sex TraffickingRead the Press Release
CHICAGO — A Bellwood man has been indicted on a federal sex trafficking charge for allegedly recruiting a woman into prostitution.
ALBERT LARRY, JR., also known as “Junior,” 33, is charged with one count of sex trafficking. He pleaded not guilty today at his arraignment in U.S. District Court in Chicago. A detention hearing was scheduled for Dec. 3, 2018, at 10:30 a.m., before U.S. Magistrate Judge Michael T. Mason.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Valuable assistance was provided by the Carol Stream Police Department and the Waukegan Police Department. The government is represented by Assistant U.S. Attorney Renai S. Rodney.
The indictment alleges that Larry violently forced the victim to engage in commercial sex acts from November 2016 to August 2017. Larry took photographs of the victim and posted them in online advertisements offering commercial sex, according to a federal affidavit previously filed in the case. Larry then rented Chicago-area hotel rooms that were used for encounters with individuals who responded to the advertisements, the affidavit states. After the encounters, Larry allegedly took most, if not all, of the money earned by his victim.
Larry faces a statutory minimum sentence of 15 years in prison and a maximum sentence of life in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678, or log on to http://www.missingkids.com. The service is available 24 hours a day, seven days a week.
Federal Charges Announced Against Five Postal Workers in Fayetteville for Drug Trafficking Conspiracy and Theft of MailRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces the unsealing of an Indictment charging KELVIN DONNELL JOHNSON, KHADIR ELIJAH BEAMON, TIMOTHY LYDELL JONES, CARVIS CHARLES MARABLE, and BRANDON DARNELL MCNEILL with conspiracy to distribute marijuana and theft of mail.
According to the allegations in the Indictment, as well as statements made in open court during related proceedings, the defendants are employees of the United States Postal Service and assigned to the Fayetteville Processing and Distribution Center Annex in Fayetteville, North Carolina. Between no later than approximately October 2017 and February 2018, according to the public allegations, the defendants conspired to sell marijuana from U.S. mail parcels that they intercepted and removed from the mail stream at the Fayetteville Annex.
If convicted of the drug conspiracy charge, the defendants each would face maximum penalties of five years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of the theft of mail charge, the defendants each would face maximum penalties of five years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the Indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
Investigation of this case was conducted by the United States Postal Service – Office of Inspector General. Assistant United States Attorney Adam F. Hulbig is prosecuting the case for the government.
Explo officials sentenced for roles in conspiracy that led to illegal dumping of munitions and explosion at Camp MindenRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that officials of Explo Systems, Inc., were sentenced for their roles in a criminal conspiracy. “The defendants sentenced today used Camp Minden here in Northwest Louisiana as the largest illegal dumping ground of military explosives in the history of the United States – at over 15.6 million pounds of explosives,” United States Attorney David C. Joseph stated. “I want to thank our federal and state law enforcement partners for their commitment to protecting Louisiana’s citizens and environment. Those who endanger the safety of our community to satisfy their own greed will be held accountable.”
United States District Judge Elizabeth E. Foote sentenced the following defendants:
Co-owner David Alan Smith, 63, of Winchester, Kentucky, to 55 months in prison, three years of supervised release and $34,798,761 restitution for participating in the criminal conspiracy.
Vice President of Operations William Terry Wright, 65, of Bossier City, Louisiana, to 60 months in prison, three years of supervised release and $149,032.80 restitution for participating in the criminal conspiracy.
Director of Support Technology Charles Ferris Callihan, 69, of Shreveport, to 24 months in prison, one year of supervised release and $207,599 restitution for making false representations in documents.
M6 Demil Program Manager Kenneth Wayne Lampkin, 66, of Haughton, Louisiana, to 45 months in prison, three years of supervised release and $149,032.80 restitution for making false statements.
Traffic and Inventory Control Manager Lionel Wayne Koons, 59, of Haughton, to 41 months in prison, three years of supervised release and $92,921 restitution for making false statements.
Explo Systems Inc., was a private company whose primary business operations involved the demilitarization of military munitions and the subsequent resale of recovered explosive materials for mining operations. The U.S. Army awarded Explo an $8.6 million contract to demilitarize approximately 1.35 million propelling charges containing M6 propellant, a solid, granular, explosive material, to lawfully store them, and to handle the final disposition of the explosives. Explo represented that it intended to sell and reuse the M6 propellant to third parties. Upon the sale of the M6 propellant, the contract also required Explo to document the sale and certify to the Army its compliance of the sale with federal laws, by submitting official certificates to the Army.
The defendants conspired from January 2010 to November 2012 to defraud the United States by submitting false certificates to the U.S. Army, transporting hazardous wastes to unpermitted facilities, and improperly storing the explosives causing the government to pay money to the conspirators to which they were not entitled. From June 2011 through October 2012, Explo officials submitted false certificates to the Army showing sales of demilitarized M6 propellant to third parties, when in fact the sales did not occur. Explo officials, including Wright, also did not inform or notify the third-parties that Explo submitted the executed certificates to the Army as proof of sale of demilitarized M6. Wright submitted the certificates with forged and or fabricated signatures.
As part of the conspiracy, Smith included false and misleading statements in the proposal for the demilitarization contract regarding, among other things, Explo’s storage capacity and ability to dispose of demilitarized M6 Propellant. Wright, Koons, and others instructed lower level employees to move and improperly store M6 propellant in order to prevent government officials from discovering the improperly stored M6 propellant. Wright and others also instructed lower-level employees to hide and conceal improperly stored reactive hazardous waste from government officials during inspections. Furthermore, Callihan submitted false documents to landfills in Louisiana and Arkansas representing that the waste Explo shipped to the landfills was not hazardous, when in fact the waste was D003 reactive hazardous waste. The landfills were not legally permitted to receive hazardous waste.
On October 15, 2012, an explosion occurred at a munitions storage bunker at Camp Minden, which was leased by Expo from the Louisiana Military Department. The explosion contained approximately 124,190 pounds of smokeless powder and a box van trailer containing approximately 42,240 pounds of demilitarized M6 propellant. The damage destroyed the bunker and trailer, shattered windows of dwellings within a four-mile radius, derailed 11 rail cars near the storage bunker and led to the evacuation of the town of Doyline, Louisiana.
“Our nation’s environmental laws demand that hazardous wastes be handled safely and legally,” said Jessica Taylor, Director of EPA’s Criminal Investigation Division. “Protecting public health and safety is EPA’s core mission. When businesses choose profit over safety, they often endanger not only the environment but American lives.”
“The fact that individuals would knowingly and willingly place the citizens of Louisiana in danger is indeed disturbing,” stated Colonel Kevin Reeves, State Police Superintendent. “The decision to sentence these individuals is the culmination of an exhaustive investigation by the Louisiana State Police Emergency Services Unit working directly with our local and federal partners. I am appreciative of all their efforts.”
“The sentencing of these five subjects should be a very clear warning to those who attempt to defraud the U.S. Government,” said Frank Robey, director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Aside from the monetary fraud, these subjects wantonly placed the lives of so many at risk. Our special agents, along with our federal law enforcement partners, not only recouped money, but may have just saved the lives of those working at the facility and the surrounding area from a larger disaster.”
“Today’s sentencings represent the results of an uncompromising and tenacious investigation by the Defense Criminal Investigative Service (DCIS), other agency partners, and the U.S. Attorney’s Office,” said John F. Khin, Special Agent in Charge, DCIS-Southeast Field Office. “DCIS remains committed to pursuing Government contractors who choose profit and expediency over quality and safety, and bringing to justice anyone who violates the law through fraud and deception to undermine the critical missions of the Department of Defense and threaten the safety of our communities.”
“We believe today’s sentencing sends a strong message to those responsible for properly handling and disposing of explosive material,” said Todd Damiani, Regional Special Agent in Charge for the U.S. Department of Transportation Office of Inspector General. “Working with our law enforcement and prosecutorial partners, we will continue our vigorous efforts to protect against those who would risk the safety of the public and the environment for personal gain.”
“The actions of these defendants in the Explo case resulted in millions of dollars of expense for state and federal agencies,” said Dr. Chuck Carr Brown, Secretary of the Louisiana Department of Environmental Quality. “Hours of investigation went into their prosecution, and hundreds and thousands of man hours went into the resolution of the environmental disaster they created. When individuals willfully and knowingly commit crimes that endanger human health and the environment, they must face the strictest penalties under the law. I applaud the work of the investigative team that brought the charges against these individuals and the attorneys who successfully prosecuted the case. This outcome should stand as a lesson to those who are tempted to flout environmental regulations and laws: there will be a reckoning.”
Smith pleaded guilty December 14, 2017 to the conspiracy count and one count of making a false statement; Koons pleaded guilty on April 24, 2018, to one count of making a false statement; Lampkin pleaded guilty May 14, 2018, to one count of making a false statement; and Callihan pleaded guilty on June 8, 2018, to a one-count bill of information charging false representations under the Resource Conservation and Recovery Act.
The Environmental Protection Agency-Criminal Investigation Division, U.S. Army Criminal Investigation, Department of Defense Criminal Investigative Service, FBI, Department of Transportation-Office of Inspector General, Louisiana State Police-Emergency Service Unit, Webster Parish District Attorney J. Schuyler Marvin, and the Webster Parish Sheriff’s Office investigated the case. Assistant U.S. Attorneys Earl M. Campbell and J. Aaron Crawford prosecuted the case.
Enfield Man Charged with Selling Heroin and Fentanyl to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging CHRISTOPHER FELICIANO, 28, of Enfield, with possession with intent to distribute, and distribution, of heroin and fentanyl.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
Feliciano has been detained since his arrest on unrelated state charges earlier this year, and the indictment was returned on November 14, 2018. Feliciano appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and entered a plea of not guilty to the charge.
As alleged in court documents and statements made in court, at approximately 8:55 a.m., on October 8, 2017, Enfield Police and emergency medical personnel responded to a residence in Enfield and found an unresponsive 24-year-old male in the home. The victim was pronounced deceased. Officers searched the immediate area and located narcotics paraphernalia. Officers also seized the victim’s phone. An analysis of Facebook messages and telephone contacts revealed that the victim had ordered heroin/fentanyl from Feliciano the day before the victim was found deceased.
The charge carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration and the Enfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Dunbar Man Pleads Guilty to Federal Gun and Drug ChargesRead the Press Release
CHARLESTON, W.Va. – A Dunbar man pled guilty today to conspiracy to distribute 50 grams or more of methamphetamine and illegally possessing firearms, announced United States Attorney Mike Stuart. Tajae Dasjuan Mosley, 27, entered his guilty plea before United States District Irene C. Berger. Stuart commended the investigative efforts of the FBI, United States Postal Inspection Service, the Kanawha County Sheriff’s Department, and the West Virginia State Police.
“More meth. Another prohibited person with a gun,” said United States Attorney Mike Stuart. “These are all too familiar crimes in West Virginia, which we will continue to aggressively prosecute.”
On July 10, 2018, Mosley was arrested at his Howard Avenue apartment following a long-term investigation of methamphetamine trafficking in and around the Smoot Avenue and Howard Avenue apartments. Police seized three firearms from the residence. Mosley admitted that he had been distributing methamphetamine since at least November 2017 and that he was prohibited from possessing firearms due to being a habitual drug user.
Mosley faces a mandatory minimum of five years and a maximum of 50 years in federal prison when he is sentenced on March 10, 2019. Assistant United States Attorney Joshua C. Hanks is responsible for the prosecution.
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.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Dublin Man Sentenced to More Than 14 Years in Prison for Series of Armed Robberies Targeting San Francisco PharmaciesRead the Press Release
SAN FRANCISCO – Adam Herrick was sentenced Thursday, November 29, 2018, to 171 months in prison for six robberies targeting San Francisco pharmacies, announced U.S. Attorney Alex G. Tse and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Ray Roundtree. The sentence was handed down by the Honorable William H. Orrick, U.S. District Judge.
Herrick, 36, a Dublin resident, pleaded guilty on August 23, 2018, to six counts of interference with commerce by robbery (“Hobbs Act robbery”) and one count of brandishing a firearm during a robbery. At the time of his plea, Herrick admitted to committing all six robberies between March 15, 2015, and April 17, 2017, at various San Francisco businesses, including multiple Walgreens and CVS locations, and one independent pharmacy. In several of the robberies, Herrick jumped over the pharmacy counter and brandished a black semi-automatic pistol as he demanded that the pharmacist and pharmacy employees hand over prescription drugs, including Fentanyl and OxyContin. The total value of the drugs that Herrick stole during the two-year robbery spree amounted to $32,360.
A federal grand jury indicted Herrick on March 1, 2018, charging him with six counts of Hobbs Act robbery, in violation of 18 U.S.C. § 1951(a) and one count of brandishing a firearm in furtherance of a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A). Herrick pleaded guilty and was sentenced as to all counts in the indictment.
In addition to the prison term, Judge Orrick ordered Herrick to serve a five-year period of supervised release, and further ordered Herrick to compensate each victim pharmacy for its monetary losses resulting from the robberies. Herrick is currently in custody and will begin serving his sentence immediately.
Assistant U.S. Attorney Casey Boome is prosecuting the case with the assistance of Patricia Mahoney and Marina Ponomarchuck. The prosecution is the result of an investigation led by the San Francisco Police Department and the ATF.
Drug Dealer Found Guilty of Distributing Fentanyl Causing Death of Veteran in KalamazooRead the Press Release
Deondray Christopher Abrams now faces a mandatory sentence of life in prison
GRAND RAPIDS, MICHIGAN — Yesterday evening, a jury in federal district court in Kalamazoo found Deondray Christopher Abrams guilty of distributing fentanyl on March 21, 2017, which resulted in the death of Brandon Jay Demko, a Marine Corps veteran of Iraq and Afghanistan suffering from severe PTSD. Due to Abrams’ prior conviction, this offense carries a statutory mandatory term of life in prison. Abrams is scheduled to be sentenced on April 8, 2018.
Abrams, 26, of Kalamazoo, sold fentanyl on March 21, 2017, as heroin. Fentanyl is at least 40 times more powerful than heroin. Brandon Demko used the fentanyl believing it to be heroin. He became unconscious and ultimately died. In response to a 911 call, Kalamazoo Department of Public Safety officers and LIFE EMS paramedics tried diligently to revive Mr. Demko but were unsuccessful. Officer John Khillah, with the Kalamazoo Department of Public Safety and the Kalamazoo Valley Enforcement Team, conducted the investigation into the source of the fentanyl. After a two day-long trial, the federal jury convicted Abrams of distributing the fentanyl that killed Mr. Demko.
U.S. Attorney Andrew Birge warned: "Fentanyl is increasingly available in Western Michigan. Drug dealers are mixing fentanyl with heroin and, as in this case, selling fentanyl as heroin. Fentanyl is so much more powerful than heroin that opioid deaths have risen in the past few years. The U.S. Attorney’s Office will continue to aggressively prosecute opioid drug dealers whose product results in death."
"We have seen a dramatic increase in the number of opioid related overdoses recently. The combined state and federal efforts has brought closure to this case. We hope that this outcome will deter people from using or dealing these deadly substances," said Executive Lt. Mike Kelley of the Kalamazoo Valley Enforcement Team and COPS Division Commander.
This case was prosecuted by Assistant U.S. Attorneys Austin J. Hakes and B. Rene Shekmer. Prosecution would not have been possible without the combined assistance of the Kalamazoo Department of Public Safety, the Kalamazoo Valley Enforcement Team, the Kalamazoo County Medical Examiner’s Office, the Michigan State Police, the Kalamazoo County Prosecuting Attorney’s Office, and the Drug Enforcement Administration.
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Drug Addict from Grant County, N.M., Sentenced to Prison for Illegally Possessing Firearms and AmmunitionRead the Press Release
ALBUQUERQUE – Richard Dinwiddie, 58, of Cliff, N.M., was sentenced today in federal court in Las Cruces, N.M, to 15 months in prison followed by two years of supervised release for being a drug addict in possession of firearms and ammunition.
Dinwiddie pled guilty on June 28, 2018. He admitted that federal and local law enforcement officers executed a search warrant at his residence on Feb. 5, 2018, and found approximately six firearms, approximately 1,000 rounds of ammunition, 4.5 grams of methamphetamine, and drug paraphernalia. Dinwiddie also admitted that he had been a methamphetamine user for approximately two years.
This case was investigated by the Las Cruces office of the FBI, the New Mexico State Police, the Grant County Sheriff’s Office, the Catron County Sheriff’s Office, and the Silver City Police Department with assistance from the 6th Judicial District Attorney’s Office. Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Dietary Supplement Ingredient Importers Arrested in Connection with Large-Scale Smuggling and Money Laundering SchemeRead the Press Release
LOS ANGELES – Two Southern California residents were arrested Wednesday in connection with a long-running scheme to smuggle purported dietary supplement ingredients into the United States from China, the Department of Justice announced today.
Lynn Chau, 43, of Rosemead, and Bao Luu, 42, of Mira Loma, were charged in a seven-count indictment that was returned by a Los Angeles federal grand jury on November 7, and unsealed today. The indictment also charged Pure Assay Ingredients Inc., Chau’s import company located in City of Industry, and two Chinese citizens, Alex Wang and Ivy He, who worked for Pure Assay in Chengdu, China.
According to the indictment, the defendants conspired to deceive the Food and Drug Administration (FDA) and U.S. Customs and Border Protection (CPB) inspectors by mislabeling certain stimulants and other questionable ingredients as non-controversial substances to evade government scrutiny during import. The indictment alleges that the defendants sold the smuggled substances to dietary supplement manufacturers in the United States for use in consumer products. In one instance, the indictment contends that Chau and Luu assembled a false shipment to fool FDA into believing that Pure Assay destroyed substances the agency blocked from distribution. In reality, Pure Assay already had shipped out the real products and presented mislabeled substitutes for destruction.
“The public deserves honesty and integrity from companies importing ingredients for the products people purchase and consume,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will continue to pursue and prosecute those who import dangerous and illegal ingredients for fraudulent purposes.”
“This case alleges a scheme designed to generate profits at the expense of the public’s health and safety,” said United States Attorney Nick Hanna. “Members of the conspiracy are charged with smuggling prohibited substances, such as steroid precursors, and attempting to prevent U.S. officials from learning the true nature of the shipments that made their way into so-called dietary supplements. We will continue to investigate and prosecute people involved in deceptive practices that endanger consumers.”
According to the indictment, Pure Assay, Chau, Wang and He prepared fraudulent documents, including false certificates of analysis and false labels, and submitted them to FDA when they believed that an ingredient would be denied entry or invite inquiries from FDA and CPB. The false documents typically declared the substances to be sucralose, melatonin, or other legal ingredients. The indictment alleges that the defendants used this method to smuggle into the United States designer steroids and stimulants for use in dietary supplements while disregarding the risk that their operation posed to consumers.
“American consumers are put at risk when the true nature of ingredients for dietary supplements is hidden from regulatory authorities,” said Charles L. Grinstead, Special Agent in Charge, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to pursue and bring to justice those who jeopardize the public health.”
The indictment against Pure Assay and its principals follows a separate, recent prosecution against several Chinese citizens charged with conspiring to mislabel synthetic dietary supplement ingredients or otherwise helping to hide the true nature of a purported new dietary supplement from American retailers. Three Chinese nationals arrested in Las Vegas last fall while attending a dietary supplement trade show later pleaded guilty in connection with that prosecution.
The case was investigated by FDA’s Office of Criminal Investigations. The case is being prosecuted by Trial Attorneys Patrick Runkle, Raquel Toledo, and David Sullivan of the Department of Justice’s Consumer Protection Branch, and Erik Silber, Assistant United States Attorney for the Central District of California.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.