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Thursday 18 October 2018
Wallingford Man Pleads Guilty to Drug Charge Related to Overdose Death InvestigationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that TIMOTHY ESTRIDGE, 37, of Wallingford, pleaded guilty yesterday in New Haven federal court to one count of possession with intent to distribute, and distribution of, amphetamine.
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.
According to court documents and statements made in court, on December 16, 2017, the Wallingford Police Department and emergency medical personnel responded to a Wallingford residence after a 9-1-1 call reported the untimely death of a 38-year-old male. The caller who reported the death did not leave contact information and was not on scene when responders arrived. The victim was pronounced dead at the scene, where investigators seized evidence of illicit drug use, including a small plastic baggy containing approximately eight suspected oxycodone pills, a glass dish with white powder residue, a broken credit card, pieces of wax folds commonly used as heroin packaging, a used plastic syringe, and prescription pill bottles.
One of the pill bottles recovered was an empty bottle, in Estridge’s name, for 30 10-milligram Adderall pills.
The State of Connecticut Chief Medical Examiner determined the victim’s cause of death to be intoxication of a combination of heroin, fentanyl, oxycodone, alprazolam, amphetamine, and ethanol.
The investigation revealed that, on December 1, 2017, Estridge filled a prescription for Adderall, which contains amphetamine, and subsequently distributed the pills to the victim.
The investigation further revealed that, on multiple occasions between July and December 2017, Estridge possessed and distributed heroin and amphetamines.
Estridge is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on January 9, 2019, at which time he faces a maximum term of imprisonment of 20 years.
Estridge is detained pending sentencing.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force and the Wallingford Police Department. The case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
Utah Man Charged in Seven-Count Federal Indictment with Threat to Use a Biological Toxin as a WeaponRead the Press Release
A federal grand jury in Salt Lake City returned a seven-count indictment Thursday morning charging William Clyde Allen, III, age 39, of Logan, Utah, in connection with ricin-related threats. The indictment alleges he knowingly threatened to use a biological agent and toxin, specifically ricin, as a weapon.
Assistant Attorney General John C. Demers of the Department of Justice’s National Security Division, U.S. Attorney John W. Huber of Utah, Special Agent in Charge Eric K. Barnhart of the FBI’s Salt Lake City Field Office, Special Agent in Charge John Gullickson of the U.S. Secret Service’s Denver Field Office, and U.S. Postal Inspector Jared D. Bingham, Team Leader in Salt Lake City, announced the indictment.
The indictment also charges Allen with one count of mailing a threat against the President and five counts of mailing threatening communications to an officer or an employee of the United States in the indictment returned Thursday morning.
Allen was arrested on a federal complaint filed Oct. 5, 2018. He was ordered detained pending resolution of the case at a detention hearing Monday. U.S. Magistrate Judge Dustin B. Pead found him to be a danger to the community. Allen entered a plea of not guilty to the charges Thursday morning in U.S. District Court. U.S. District Judge David Sam will preside over a four-day trial starting Dec. 26, 2018, in Salt Lake City.
The indictment alleges the defendant sent a letter to the President of the United States with the language “Jack and the Missile Bean Stock Powder” and containing castor bean material.
Five counts of the indictment charge Allen with mailing threatening communications to an officer or an employee of the United States, including Secretary of Defense James N. Mattis; Admiral John M. Richardson, Chief of Naval Operations; FBI Director Christopher A. Wray; CIA Director Gina Haspel; and Secretary of the Air Force Heather Wilson.
Ricin naturally exists in, and may be extracted from, the seeds of the castor bean. The extraction of ricin from these seeds does not require technical expertise. Small doses of ricin are lethal to human beings if ingested, inhaled, or injected. According to Center for Disease Control information, there are no known antidotes for poisoning from ricin. Allen purchased 380 castor beans in December 2017 in quantities of 100 (two purchases) and 30 (six purchases).
The potential maximum penalty for threatening to use a biological toxin as a weapon is life in prison. Mailing a threat against The President has a potential maximum penalty of five years in prison and mailing a threatening communications to an officer or an employee of the United States has a potential 10-year sentence.
Indictments are not a finding of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The U.S. Attorney’s Office in Salt Lake City, with the assistance of the Department of Justice’s National Security Division’s Counterterrorism Section, is prosecuting the case. U.S. Postal Inspectors and special agents of the FBI and U.S. Secret Service are investigating the case.Using Opioids Leads to Three Deaths in Eastern IowaRead the Press Release
Three men who distributed an opioid that led to the death of the person who used the drug were sentenced to federal prison over the last week.
“Opioid abuse remains at an all-time high and these dangerous drugs wreak havoc on lives and communities,” said United States Attorney Pete Deegan. “Street drugs - including those sold over the internet - routinely contain powerful opioids. These drugs have never been more deadly and anyone caught distributing them will be held accountable.”
Opioids are extremely dangerous and powerful drugs. These drugs are so potent that extremely small doses can cause overdose and even death. The picture below shows fatal doses of three different opioids.
Over the last week, three men were sentenced to federal prison in Cedar Rapids for their roles in distributing opioids that eventually led to the deaths of three Iowans who used the drugs. These cases demonstrate that those buying and using drugs may not know they are getting. They may be getting more powerful and dangerous drugs then they realize. Either way, the use of an opioid too often ends with death because a drug user does not know what kind of drug they are taking or how dangerous it is.
The three men sentenced were:
- On October 17, 2018, Richard Leroy Parker, age 47, from Dubuque, Iowa, received a sentence of life imprisonment following a January 18, 2018, jury verdict finding him guilty of distribution of heroin within 1,000 feet of an elementary school and a playground, resulting in death, and of possession with intent to distribute heroin within 1,000 feet of an elementary school and a playground.
The evidence at trial showed that Parker obtained several grams of heroin in Chicago in April 2017. On Easter Sunday, Parker brought the heroin to a residence on Rhomberg Avenue in Dubuque. Parker and other individuals at the residence drank alcohol and smoked crack cocaine throughout the day. Prior to midnight, Parker and a woman went into a back bedroom. While inside the room, Parker gave the woman heroin, which she used. Shortly after using the heroin, she stopped breathing. At approximately 12:20 a.m. on April 17, Parker called 911, and emergency responders arrived at the scene. Parker testified that, as emergency responders were attempting to save the woman’s life, he went into another room and hid the remaining heroin in a chair. Investigators later found the rest of the heroin. The attempts to resuscitate the woman were unsuccessful, and she was pronounced dead shortly after 1:15 a.m.
Parker had numerous felony criminal convictions. Amongst his prior convictions are four prior felony convictions related to drugs, including three prior convictions for drug distribution. In April 2017, Parker had recently been released after spending nearly a decade in prison for a burglary conviction.
- On October 11, 2018, Jervonie Murphy, age 26, from Dubuque, Iowa, received a sentence of 33 months’ imprisonment following a May 21, 2018, guilty plea to two counts of distributing heroin within 1,000 feet of a public playground or school in Dubuque.
At the sentencing hearing, Murphy admitted he sold at least 80 grams of heroin between 2015 and 2018. On July 18, 2016,Murphy sold heroin to a woman. That woman shared some of the heroin with another woman who used the heroin and was found unresponsive the next morning. She never recovered and was pronounced dead on July 20, 2016. An autopsy revealed that the woman died of “mixed drug toxicity” involving methamphetamine and heroin.
Information presented at the sentencing also showed that less than two weeks later, Murphy again sold heroin. The Dubuque Drug Task Force eventually made two controlled buys of heroin from Murphy. One of the sales occurred within 1,000 feet of two playgrounds in Dubuque. The second controlled buy occurred within 1,000 feet of an elementary school. Officers then searched Murphy’s home and found marijuana, crack cocaine, powder cocaine, heroin, and fentanyl.
Murphy had no felony criminal convictions prior to this offense.
- On October 11, 2018, Jay Rickert, age 28, from Grand Rapids, Michigan, received a sentence of 18 months’ imprisonment following a June 14, 2018, guilty plea to willfully causing the distribution of a controlled substance.
According to information disclosed at sentencing and in sentencing documents, Rickert admitted to ordering DMT, an illegal hallucinogenic drug, from an on-line supplier on the dark web. Rickert had the drugs shipped directly to his friend, a 22-year‑old woman who lived in Dubuque, Iowa. He also shipped a precise digital scale to the woman, and provided her detailed instructions on the quantity of DMT she could safely use.
Unbeknownst to either Rickert or the woman in Dubuque, the dark web supplier shipped fentanyl instead of DMT. DMT and Fentanyl are nearly identical in appearance. The woman, believing the substance to be DMT, used the fentanyl and died. Rickert was talking to the woman over Skype while she used the fentanyl. After seeing her fall over, Rickert called 911. An autopsy later concluded that the cause of death was a fentanyl overdose.
Rickert had no criminal history prior to this conviction.
The pictures below show how similar DMT is to Fentanyl in appearance. The picture on the left is of DMT and the picture on the right is Fentanyl.
All three men were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. They are being held in the United States Marshal’s custody until they can be transported to a federal prison. There is no parole in the federal system.
The cases were prosecuted by Assistant United States Attorneys Dan Chatham and Justin Lightfoot and investigated by the Dubuque Drug Task Force, the Dubuque Police Department, the Dubuque County Sheriff’s Department, and the Drug Enforcement Administration (DEA).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number are 17-CR-1034 (Parker), 18-CR-1010 (Murphy), and 18-CR-1008 (Rickert).
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- On October 17, 2018, Richard Leroy Parker, age 47, from Dubuque, Iowa, received a sentence of life imprisonment following a January 18, 2018, jury verdict finding him guilty of distribution of heroin within 1,000 feet of an elementary school and a playground, resulting in death, and of possession with intent to distribute heroin within 1,000 feet of an elementary school and a playground.
Un hombre de Nueva Orleans se declara culpable de un delito de odio cometido durante el disparo de tres hombres afroestadounidenses que intentaban huir de la zona tras el Huracán KatrinaRead the Press Release
Roland J. Bourgeois, Jr., de 55 años, vecino de Nueva Orleans, Luisiana, compareció ante la Jueza Superior del Tribunal Federal de Distrito Mary Ann Vial Lemmon y se declaró culpable ante los cargos de que, tras el Huracán Katrina, disparó a tres hombres jóvenes afroestadounidenses por motivo de su raza mientras los hombres intentaban huir de Nueva Orleans. Así anunciaron John Gore, el Fiscal General Auxiliar en funciones de la División de Derechos Civiles; Peter G. Strasser, el Fiscal Federal para el Distrito Oriental de Luisiana; y Eric J. Rommal, el Agente Especial Encargado de la División del Buró Federal de Investigaciones (FBI, por sus siglas en inglés) en Nueva Orleans.
Según los documentos presentados en apoyo de la declaración, poco después de la llegada del Huracán Katrina a Nueva Orleans, Bourgeois y otros hombres blancos, vecinos del barrio de Algiers Point, acordaron utilizar fuerza para alejar a los afroestadounidenses de su barrio. Transportaron árboles caídos para bloquear las calles cerca de sus casas y comenzaron patrullas armadas en el barrio.
El 1 de septiembre del 2005, tres hombres jóvenes afroestadounidenses, D.H, M.A. y C.C., caminaron a Algiers Point en un intento de llegar al desembarque del transbordador, un lugar que las agencias estatales y federales estaban usando como punto de evacuación. Cuando los tres hombres cruzaron la barricada construida por Bourgeois y otros, Bourgeois abrió fuego con una escopeta y lesionó a los tres hombres. Después de que huyeran, Bourgeois se jactó que había «dado con uno» y prometió «matar a ese [palabra racista] si el hombre llegara a sobrevivir. Bourgeois advirtió a uno de sus vecinos que «se disparará a cualquier cosa que pase por esta calle cuya tez sea más oscura que un saco de papel marrón».
«Esta declaración de culpabilidad demuestra el compromiso continuo del Departamento de Justicia a lo largo del tiempo a hacer que los autores de delitos de odio rindan cuentas de sus acciones», declaró el Fiscal General Auxiliar en funciones John Gore. «Todo estadounidense, independientemente de su raza, tiene derecho a vivir libre de violencia y daños físicos».
«Una de las tareas principales del Departamento de Justicia es la defensa de los derechos civiles de nuestros ciudadanos. Esta condena demuestra el compromiso de los cuerpos del orden público a hacer que los individuos rindan cuentas de sus acciones, a pesar del paso del tiempo», afirmó el Fiscal Federal Strasser. «Espero que esta declaración de culpabilidad ofrezca un atisbo de paz a aquellos que fueron directamente impactados por este delito y a esta gran ciudad que sufrió tanto en los días después del Huracán Katrina».
«Aunque estos delitos y el Huracán Katrina ocurrieron hace más de 13 años, el FBI no se olvida. La declaración de culpabilidad de hoy es una prueba de que la justicia perdura y de que continuaremos persiguiendo a aquellos que vulneren y priven a otros de sus derechos civiles», dijo el Agente Especial Encargado del FBI Eric J. Rommal.
Bourgeois será condenado el 17 de enero del 2019. Conforme los términos del acuerdo de admisión de culpabilidad, Bourgeois se enfrenta a un mínimo de cinco años de cárcel y un máximo de diez años. Previamente, Bourgeois fue acusado en una acusación formal de cinco cargos en julio del 2010.
El FBI llevó a cabo la investigación. El caso está siendo enjuiciado por el Fiscal Federal Auxiliar para el Distrito Oriental de Luisiana David Howard Sinkman y el Consejero de Litigios Especiales Jared Fishman y la Abogada de Litigios Mary J. Hahn de la División de Derechos Civiles.
Two Michigan Home Health Agency Owners Sentenced to Prison for Health Care FraudRead the Press Release
Two Detroit-area home health agency owners were sentenced to 10 and six years in prison, respectively, for their roles in a multimillion dollar scheme to defraud Medicare by billing for home health services that were never provided.
Assistant Attorney General Brian A. Benczowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Hafiz Tahir, 49, and Tasneem Tahir, 44, both of Brownstown, Michigan, were sentenced by U.S. District Judge Marianne O. Battani of the Eastern District of Michigan, to 10 and six years in prison, respectively. Judge Battani also ordered the defendants to pay restitution in the amount of $9,674,575 and $4,447,667, respectively, jointly and severally with their co-conspirators. Judge Battani entered money judgments against Hafiz Tahir, in the amount of $5,575,562.33, and Tasneem Tahir, in the amount of $2,605,176.70. The Tahirs were also ordered to forfeit to the United States their interest in $226,000 located in a Lebanese bank, two pieces of real property and cash in lieu of two vehicles. The defendants each pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to pay and receive health care kickbacks.
As part of their guilty pleas, Hafiz and Tasneem Tahir admitted that they paid illegal kickbacks in exchange for the referral of Medicare beneficiaries to home health agencies that they owned. They further admitted that between 2009 and 2017, they submitted false and fraudulent claims to Medicare for home health services that were never provided.
Hafiz and Tasneem Tahir were charged along with Hoda Sabbagh, aka Donna Hamadani, 54, of Milford, Michigan; Emma King, 69, of Detroit, Michigan; and Antonio Kho, 72, of Oak Park, Michigan. King and Kho pleaded guilty and are pending sentencing. Sabbagh remains a fugitive.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and HHS-OIG investigated the case. Trial Attorney Rebecca Yuan of the Fraud Section prosecuted the case. The financial investigation was conducted in coordination with the Forfeiture and Financial Litigation Unit of the U.S. Attorney’s Office for the Eastern District of Michigan. Assistant U.S. Attorney Shankar Ramamurthy of the Eastern District of Michigan handled the asset forfeiture proceedings.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Two Men Plead Guilty to Charges in Fatal Shooting in Northeast WashingtonRead the Press Release
WASHINGTON –Marco F. Williams, 25, and Barry J. Giles, 22, also known as “Juany,” both of Washington, D.C., have pled guilty to charges in the October 2016 shooting death of a man in the Fort Lincoln neighborhood of Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Williams pled guilty to voluntary manslaughter while armed. Giles pled guilty to one count of voluntary manslaughter and one count of carrying a pistol without a license. Both pleas took place on Oct. 17, 2018, in the Superior Court of the District of Columbia. The pleas, which are contingent upon the Court’s final approval, call for a prison sentence for Williams of 186 months, or 15 ½ years, and a prison sentence for Giles of 102 months, or 8 ½ years. The Honorable Judith Bartnoff scheduled sentencing for Dec 18, 2018.
The evidence in support of the guilty pleas showed that on the night of Wednesday, Oct. 5, 2016, Williams and Giles were in the Fort Lincoln neighborhood, where each of them had ties. Specifically, they were in the area of the 3100 block of Berry Road NE, where they spent time and drank alcohol with the victim, Timothy Lassiter, and others.
Both Williams and Giles had pistols. In the course of the evening, Williams and Giles resolved to shoot and kill Mr. Lassiter, 36. At 11:42 p.m., Williams, armed with a 9mm semi-automatic pistol, fired four shots at Mr. Lassiter, striking him twice. Four 9mm cartridge cases fired from the same gun were recovered in the area where Mr. Lassiter’s body was found by responding medics and police officers.
The evidence established that after Mr. Lassiter was shot by Williams, Giles went through Mr. Lassiter’s pockets and removed items of personal property.
Mr. Lassiter was transported by ambulance to a hospital and was pronounced dead early on Oct. 6, 2016. Following Mr. Lassiter’s funeral on Saturday, Oct. 15, 2016, Giles went on social media and posted a video of himself talking about the shooting of Mr. Lassiter. In the video, which was soon thereafter deleted, Giles boasted and bragged about his role in the shooting.
Warrants for the arrest of the two defendants were issued on March 1, 2018. Giles was arrested on March 5, 2018, and Williams, who was otherwise serving a sentence, was arrested on March 29, 2018. Both have been held without bond since their arrests.
In announcing the guilty pleas, U.S. Attorney Liu and Chief Newsham commended the work of detectives of the Criminal Investigations Division’s Homicide Branch, forensic scientists from the District of Columbia Department of Forensic Sciences, who processed the crime scene, and officers of MPD’s Fifth Police District, who responded to the shooting. They also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys David Misler and Michael D. Brittin; Criminal Investigators Durand Odom and Mark Crawford; Paralegal Specialist Debra Joyner; and Investigative Analysts Shannon Alexis and Zachary McMenamin.
Twice-Convicted Honduran Felon Admits Illegally Re-entryRead the Press Release
UTICA, NEW YORK – Ronald Pineda-Carias, age 41, and a citizen of Honduras, pled guilty today to illegally re-entering the United States as a felon.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
On May 2, 2006, Pineda-Carias was convicted of felony cocaine possession in Miami, Florida, and was thereafter removed from the United States to Honduras. On November 4, 2011, he was convicted of illegally re-entering the United States in the United States District Court for the Western District of Pennsylvania. Pineda-Carias was again removed to Honduras. In all, Pineda-Carias has been removed to Honduras on 5 occasions.
On August 9, 2018, a Border Patrol Agent encountered Pineda-Carias in downtown Plattsburgh, New York. Pineda-Carias had a brief conversation with the agent, but then fled on foot and dove into the Saranac River in an effort to evade agents. After a brief search, a Plattsburgh Police Officer discovered Pineda-Carias hiding in bushes on the southwest bank of the river.
As a result of his conviction, Pineda-Carias faces up to 10 years in prison when he is sentenced by United States District Judge David N. Hurd on December 20, 2018. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Border Patrol, with assistance from the Plattsburgh Police Department, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Tulare County Men Indicted in Firearms and Cockfighting CaseRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 14-count indictment today against Pedro Gavino, 23, and his father, Pedro Gavino-Robles, 58, both of Orosi, charging them with four felony counts of animal cruelty violations relating to cockfighting, U.S. Attorney McGregor W. Scott announced.
In addition, Gavino was charged with dealing firearms without a license and nine counts of possessing and transferring firearms in violation of the National Firearm Act. According to court documents, from February 2017 to October 4, 2018, Gavino sold homemade AR-15 style assault rifles that did not have any serial numbers or manufacture markings. Gavino was not a licensed firearms dealer. During one of his firearms transactions, Gavino sold gamecocks and knives or gaffs for the purpose of cockfighting. Gavino and his father, Pedro Gavino-Robles, allegedly bought, trained, and sold hundreds of gamecocks from their ranch and attended cockfights in Tulare County. During the execution of a federal search warrant at their ranch, agents found at least 150 gamecocks and 278 knives used in cockfighting.
Cockfighting violates federal law and is outlawed in all 50 states. In cockfighting, roosters, bred for fighting and often provided with stimulants to make them more aggressive, are placed in a pit and goaded to fight. With knives attached to their legs, the birds kick one another to the death, all for the entertainment and profit of spectators, exhibitors, and sponsors.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Department of Agriculture, with assistance from the Dinuba Police Department and the Multi-Agency Gang Enforcement Consortium (MAGEC), consisting of officers from the California Highway Patrol, the Fresno County Sheriff’s Office, and Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Gavino is scheduled to be arraigned in the federal court in Fresno on October 19, 2018. An arrest warrant has issued for Gavino-Robles. If convicted, Gavino faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each of the nine counts of possessing and transferring unregistered firearms. He also faces a maximum statutory penalty of five years in prison and a $250,000 fine for dealing firearms without a license. Both defendants face a maximum statutory penalty of five years in prison and a $250,000 fine for each of the four counts relating to selling gamecocks and knives used in cockfights. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Three Former Biscayne Park Patrol Officers Sentenced for Deprivation of Civil Rights by Intentionally Making False ArrestsRead the Press Release
Acting Assistant Attorney General John Gore for the Justice Department’s Civil Rights Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced that former Biscayne Park Police Officer Guillermo Ravelo was sentenced to 27 months incarceration for conspiracy to deprive a person of his civil rights and deprivation of civil rights under color of law.
“These officers conspired to falsely arrest individuals in the name of providing deceptive clearance statistics for the benefit of Chief Atesiano,” said Acting Assistant Attorney General John Gore. “Chief Atesiano and these officers abused their authority and the Department will continue to ensure officers such as these are held accountable.”
“Officers who use excessive force and make false arrests maliciously cause harm to their victims and scourge our justice system,” said U.S. Attorney Ariana Fajardo Orshan. “With great power, comes great responsibility. Through aggressive federal prosecutions, the U.S. Attorney’s Office for the Southern District of Florida will continue to guard the invaluable civil rights of every member of our community and hold those accountable who violate our constitutional protections.”
“These three police officers from Biscayne Park disgraced themselves and damaged the public’s trust in law enforcement. Their actions are inexcusable and are not representative of the law enforcement professionals who serve us selflessly,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “The citizens of South Florida can take comfort in the fact that the vast majority of police officers are honest, forthright individuals who are committed to doing the job right. To those officers who aren’t, the FBI’s Miami Area Corruption Task Force was assembled and designed to root them out.”
“Honesty and integrity are the core values of every effective police officer,” said State Attorney Katherine Fernandez Rundle. “Former Biscayne Park Police Officers Guillermo Ravelo, Charlie Dayoub and Raul Fernandez undermined their essential task of protecting the community, in some instances by using excessive force and in others, by conspiring to deprive suspects of their civil rights so as to produce bogus arrests. This absolute abuse of power by all three officers violated every aspect of the oath Ravelo, Dayoub, and Fernandez took the day they became police officers.”
“The officers’ actions are everything we guard against in law enforcement and violated our most important principals,” said FDLE Miami Special Agent in Charge Troy Walker. “When an officer abuses the public’s trust, there must be severe consequences. I thank the U.S. Attorney’s Office for their work on this case.”
According to court filings, on Jan. 23, 2013 and Feb. 26, 2014, at the direction of then Biscayne Park Police Department Chief Raimundo Atesiano, Ravelo falsely arrested a victim identified as “C.D.” and another victim identified as “E.B.” C.D. was charged with two residential burglaries, and E.B. was charged with five vehicle burglaries, both without probable cause. In a separate incident, on April 7, 2013, Ravelo responded to a request for assistance from another Biscayne Park police officer who had conducted a traffic stop. During the arrest of the driver, Ravelo used unreasonable force by striking the handcuffed driver with his fists.
Former Chief Atesiano previously pleaded guilty to acting under color of law as chief of police when on three separate occasions he ordered officers Ravelo, Charlie Dayoub and Raul Fernandez to falsely arrest and charge individuals with unsolved burglaries. In court filings related to the plea, Atesiano admitted that he instructed Ravelo to falsely arrest and charge E.B for five vehicle burglaries based upon what Atesiano knew were false confessions. Former Chief Atesiano is scheduled to be sentenced on Nov. 27, 2018.
Former officers Charlie Dayoub and Raul Fernandez were each sentenced to 12 months in prison for their role in falsely arresting a 16-year old juvenile, “T.D.,” for four unsolved burglaries. Dayoub and Fernandez were the first officers to cooperate with the government and accept responsibility for their criminal acts. Their cooperation directly implicated Atesiano and resulted in an indictment being returned against the former chief charging civil rights violations.
As noted at the hearing and in court filings, on June 13, 2013, Chief Atesiano instructed the officers to unlawfully arrest and falsely charge T.D., a juvenile previously known to Chief Atesiano and Dayoub. Dayoub and Fernandez complied with Chief Atesiano’s instructions and falsely arrested T.D. Fernandez wrote narratives containing fabricated information in support of the four arrest affidavits that falsely claimed an investigation revealed that T.D. had committed the four burglaries. Dayoub signed and attested that the contents of the affidavits were true even though he, like Chief Atesiano and Fernandez, knew that no evidence existed to substantiate the arrest. T.D. was subsequently arrested for the four burglaries.
According to court filings, Chief Atesiano intentionally encouraged officers to arrest individuals without a legal basis in order to have arrests effectuated for all reported burglaries, which created a fictitious 100% clearance rate for that category of crime.
This case was investigated by the FBI, including the FBI Miami Area Corruption Task Force, and FDLE, and assisted by the Miami-Dade State Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Department of Justice Trial Attorney Donald W. Tunnage, and Assistant State Attorney Trent Reichling.
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 on http://pacer.flsd.uscourts.gov.
Three Former Biscayne Park Patrol Officers Sentenced for Deprivation of Civil Rights by Intentionally Making False ArrestsRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Acting Assistant Attorney General John Gore for the Justice Department’s Civil Rights Division, Katherine Fernandez Rundle, Miami-Dade State Attorney, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced that former Biscayne Park Police Officer Guillermo Ravelo was sentenced to 27 months incarceration for conspiracy to deprive a person of his civil rights and deprivation of civil rights under color of law.
“Officers who use excessive force and make false arrests maliciously cause harm to their victims and scourge our justice system,” said U.S. Attorney Ariana Fajardo Orshan. “With great power, comes great responsibility. Through aggressive federal prosecutions, the U.S. Attorney’s Office for the Southern District of Florida will continue to guard the invaluable civil rights of every member of our community and hold those accountable who violate our constitutional protections.”
“These officers conspired to falsely arrest individuals in the name of providing deceptive clearance statistics for the benefit of Chief Atesiano,” said Acting Assistant Attorney General John Gore. “Chief Atesiano and these officers abused their authority and the Department will continue to ensure officers such as these are held accountable.”
“These three police officers from Biscayne Park disgraced themselves and damaged the public’s trust in law enforcement. Their actions are inexcusable and are not representative of the law enforcement professionals who serve us selflessly,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “The citizens of South Florida can take comfort in the fact that the vast majority of police officers are honest, forthright individuals who are committed to doing the job right. To those officers who aren’t, the FBI’s Miami Area Corruption Task Force was assembled and designed to root them out.”
“Honesty and integrity are the core values of every effective police officer,” said State Attorney Katherine Fernandez Rundle. “Former Biscayne Park Police Officers Guillermo Ravelo, Charlie Dayoub and Raul Fernandez undermined their essential task of protecting the community, in some instances by using excessive force and in others, by conspiring to deprive suspects of their civil rights so as to produce bogus arrests. This absolute abuse of power by all three officers violated every aspect of the oath Ravelo, Dayoub, and Fernandez took the day they became police officers.”
“The officers’ actions are everything we guard against in law enforcement and violated our most important principals,” said FDLE Miami Special Agent in Charge Troy Walker. “When an officer abuses the public’s trust, there must be severe consequences. I thank the U.S. Attorney’s Office for their work on this case.”
According to court filings, on Jan. 23, 2013 and Feb. 26, 2014, at the direction of then Biscayne Park Police Department Chief Raimundo Atesiano, Ravelo falsely arrested a victim identified as “C.D.” and another victim identified as “E.B.” C.D. was charged with two residential burglaries, and E.B. was charged with five vehicle burglaries, both without probable cause. In a separate incident, on April 7, 2013, Ravelo responded to a request for assistance from another Biscayne Park police officer who had conducted a traffic stop. During the arrest of the driver, Ravelo used unreasonable force by striking the handcuffed driver with his fists.
Former Chief Atesiano previously pleaded guilty to acting under color of law as chief of police when on three separate occasions he ordered officers Ravelo, Charlie Dayoub and Raul Fernandez to falsely arrest and charge individuals with unsolved burglaries. In court filings related to the plea, Atesiano admitted that he instructed Ravelo to falsely arrest and charge E.B for five vehicle burglaries based upon what Atesiano knew were false confessions. Former Chief Atesiano is scheduled to be sentenced on Nov. 27, 2018.
Former officers Charlie Dayoub and Raul Fernandez were each sentenced to 12 months in prison for their role in falsely arresting a 16-year old juvenile, “T.D.,” for four unsolved burglaries. Dayoub and Fernandez were the first officers to cooperate with the government and accept responsibility for their criminal acts. Their cooperation directly implicated Atesiano and resulted in an indictment being returned against the former chief charging civil rights violations.
As noted at the hearing and in court filings, on June 13, 2013, Chief Atesiano instructed the officers to unlawfully arrest and falsely charge T.D., a juvenile previously known to Chief Atesiano and Dayoub. Dayoub and Fernandez complied with Chief Atesiano’s instructions and falsely arrested T.D. Fernandez wrote narratives containing fabricated information in support of the four arrest affidavits that falsely claimed an investigation revealed that T.D. had committed the four burglaries. Dayoub signed and attested that the contents of the affidavits were true even though he, like Chief Atesiano and Fernandez, knew that no evidence existed to substantiate the arrest. T.D. was subsequently arrested for the four burglaries.
According to court filings, Chief Atesiano intentionally encouraged officers to arrest individuals without a legal basis in order to have arrests effectuated for all reported burglaries, which created a fictitious 100% clearance rate for that category of crime.
This case was investigated by the FBI, including the FBI Miami Area Corruption Task Force, and FDLE, and assisted by the Miami-Dade State Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Department of Justice Trial Attorney Donald W. Tunnage, and Assistant State Attorney Trent Reichling.
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 on http://pacer.flsd.uscourts.gov.
The U.S. Attorney's Office filed highest number of narcotics and violent crime indictments since at least 2005Read the Press Release
Under the leadership of Attorney General Jeff Sessions, the Department of Justice charged the largest number of violent crime and firearm defendants in its history in Fiscal Year (FY) 2018.
In the Northern District of Ohio, the U.S. Attorney’s Office filed indictments against 959 defendants – an increase of 50 percent over the previous fiscal year and the highest number since FY 2006.
Those indictments in the Northern District of Ohio include:
- Indictments filed against 393 defendants for narcotics offenses – the highest number since 2005 and an increase of 69 percent over the previous fiscal year.
- Indictments filed against 268 defendants for violent crime offenses – the highest since 2004 and an increase of 53 percent over the previous fiscal year.
“President Donald Trump is a law-and-order President—and this is a law-and-order administration,” said Attorney General Jeff Sessions. “The Department of Justice is breaking law enforcement records and doing so by significant margins. When I took office as Attorney General, I ordered federal prosecutors and agents to take illegal guns off of our streets, to prosecute crimes aggressively, to protect our nation’s borders, and to target white collar fraud. With support from our state and local partners, our federal prosecutors and agents have delivered—and I am grateful to them and the fabulous state and local officers who worked so hard to make these achievements possible. And we are seeing results. Violent crime and homicides, which jumped in 2015 and 2016, both dropped in 2017 and will drop again in 2018. There can be no doubt that good law enforcement policies can make our communities safer.”
U.S. Attorney for the Northern District of Ohio Justin Herdman said: “We have identified violent crime and drug overdoses as the biggest threats to our community. We have worked with local police and federal agencies to try to dismantle drug distribution networks, seek long prison sentences for those who use guns to commit crimes and strategically target those who have caused pain and suffering for our neighbors. Aggressive enforcement of the law is a crucial part of a broad strategy to improve our communities.”
Herdman added: “Numbers tell only part of the story, but they are an important reflection of the sustained, maximum effort made by the men and women of the U.S. Attorney’s Office into making our communities safer and healthier.”
According to data from the Executive Office of United States Attorneys (EOUSA), the number of defendants charged with criminal felony offenses increased by nearly 15 percent from more than 71,200 defendants in FY 2017 to more than 81,800 in FY 2018.
In FY 2018, the Justice Department charged the largest number of violent crime defendants since EOUSA started to track this category more than 25 years ago (more than 16,800)—surpassing by nearly 15 percent the previous record set just last year.
In FY 2018, the Justice Department charged more than 15,300 defendants with federal firearms offenses, which is 17 percent more than the previous record.
In FY 2018, over 23,400 defendants were charged with felony illegal re-entry, an increase of more than 38 percent from FY 2017.
In FY 2018, over 23,600 defendants were charged with drug-related offenses, an increase of more than six percent from FY 2017.
Also in FY 2018, the Justice Department increased white-collar prosecutions by more than three percent, charging more than 6,500 defendants.
Finally, in FY 2018, more than 68,400 defendants were charged with misdemeanor illegal entry. This is the highest number of such defendants charged since EOUSA started to track this category and an almost 86 percent increase from the previous year. This total is also more than 4 percent higher than the previous record of over 65,500 defendants set in FY 2013.
Syracuse Man Sentenced to 140 Months for Credit Card Fraud SchemesRead the Press Release
SYRACUSE, NEW YORK – Daquan Rice, age 23, of Syracuse, was sentenced today to 140 months in prison, to be followed by a 3-year term of supervised release, in connection with his prior guilty plea to charges involving a years-long credit card cloning operation, announced United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the of the Albany Field Office of the Federal Bureau of Investigation (FBI); Postal Inspector in Charge Joseph Cronin; New York State Police Superintendent George P. Beach II; and Syracuse Police Chief Frank Fowler. Senior Judge Frederick J. Scullin also ordered Rice to forfeit $82,550.00.
The defendant was sentenced today for two separate federal cases involving illegal credit card activity. The first, to which he pled guilty on June 1, 2017, involved wire fraud, money laundering and aggravated identity theft, based on his role in a scheme that generated tens of thousands of dollars from the use of stolen and counterfeit credit cards. As part of his guilty plea to those charges, the defendant admitted to the purchase of stolen credit card numbers belonging to hundreds of different victims, frequently from computer hackers located overseas, and the fabrication of cloned credit cards. Rice further admitted that he used those cloned credit cards to purchase tens of thousands of dollars in merchandise and prepaid gift cards. The defendant then used those prepaid gift cards to purchase United States Postal money orders, which he converted to cash. Rice’s and his co-defendants’ criminal conduct spanned from 2014 through 2016 and took place in Syracuse, as well as Texas and Georgia.
Today’s sentence also covered a second federal criminal case to which the defendant pled guilty on May 25, 2018, relating to the defendant’s participation in a counterfeit credit card scheme while he was in jail awaiting sentencing on the initial federal charges. In that second case, Rice pled guilty to wire fraud and aggravated identity theft, and admitted that in August and September 2017, he and a co-defendant acquired stolen credit card numbers, made deposits with those numbers into inmate commissary accounts, and then directed that checks be drawn from those commissary accounts and mailed out to locations in Syracuse, New York. Rice and his co-defendant made more than $8,600.00 in deposits using the stolen credit card accounts. Three checks, totaling $550.00, were sent out from the commissary accounts where deposits had been made with the stolen credit cards. However, prison officials froze the accounts and blocked the withdrawal requests before Rice could transfer additional funds.
These cases were investigated by the United States Postal Inspection Service, the Federal Bureau of Investigation (FBI), the Syracuse Police Department – Gang Violence Task Force, the New York State Police, the Cayuga County Sheriff’s Office, and the Town of Dewitt Police Department, and were prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Superseding Indictment Filed Charging Nine Members of North Philadelphia Drug Trafficking OrganizationRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that a superseding indictment was unsealed today, charging nine members of a drug trafficking organization with multiple counts related to the distribution of large quantities of drugs in North Philadelphia, including cocaine, crack, methamphetamine, and heroin.
The following individuals, all of Philadelphia, have been charged:
- Abdul West, a/k/a “Assault Rifle Ab,” “AR-Ab,” “El Patron,” “the Goon,”
- Jamaal Blanding, a/k/a “Bionickhaz,” “Khaz,” “Deangelo Smith,”
- Jameel Hickson, a/k/a “Meliano,” “OG,”
- Richard Chase Hoover, a/k/a “Boog,”
- Dontez Stewart, a/k/a “Taz,”
- Amir Boyer, a/k/a “Mulla,”
- Daryl Baker, a/k/a “Shotti,”
- Hans Gadson, a/k/a “NoBrakes Bras,” and
- Dennis Harmon.
The superseding indictment charges a conspiracy to distribute 5 kilograms or more of cocaine, 280 grams or more of crack, 50 grams or more of methamphetamine, and 100 grams or more of heroin. The superseding indictment also includes individual charges of possession with intent to distribute cocaine, methamphetamine, crack, and heroin; distribution of methamphetamine; and a charge of unlawful possession of a firearm.
According to the superseding indictment, West is the leader of a local gang, and each of the defendants is a member or associate of the gang. From at least March 2017 through June 2018, the superseding indictment alleges that these defendants have operated their drug trafficking network in the area around North Sydenham Street in Philadelphia, bringing in drugs from California and elsewhere to distribute locally, and obtaining high-end rental properties in Philadelphia through false identities to prevent detection and protect their drug supply. On September 11, 2017, the Philadelphia Police Department executed a search warrant at a house owned by West on North Sydenham Street, recovering 62 grams of crack, 229 grams of heroin, and 48 grams of methamphetamine, as well as $8,000 in cash and a handgun. On May 17, 2018, the FBI executed a search warrant at an apartment complex on Christopher Columbus Boulevard, recovering approximately 10 kilograms of cocaine and nearly 6 pounds of methamphetamine, along with $20,000 in cash.
“The charges alleged in the superseding indictment are extremely serious, and if convicted, these defendants are facing major jail time,” said U.S. Attorney McSwain. “The investigation and prosecution of drug trafficking organizations remains a high priority of this Office and the Department of Justice. We are committed to doing everything we can to keep our streets safe and stop the flow of these deadly drugs into our communities.”
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Jennifer Jordan.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Stock Broker Pleads Guilty to $3 Million Insider Trading Scheme Based on Confidential Information Misappropriated from an Investment BankRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that MICHAEL SIVA pled guilty today before U.S. District Judge Alison J. Nathan to conspiracy to commit securities fraud and fraud in connection with his role in an insider trading scheme based on material, nonpublic information misappropriated from an investment bank by Daniel Rivas, a former employee at the bank. In August 2017, SIVA, Roberto Rodriguez, Rodolfo Sablon, and Jeffrey Rogiers were arrested and charged in a 54-count Indictment for their involvement in three insider trading schemes, all stemming from information misappropriated by Rivas. Rivas and an additional participant, James Moodhe, had previously pled guilty and are cooperating with the government in this investigation. Prior to SIVA’s guilty plea, the four other defendants each pled guilty. All of the defendants will be sentenced by Judge Nathan.
U.S. Attorney Geoffrey S. Berman said: “As Michael Siva admitted today, he knowingly used misappropriated confidential corporate information to place trades in the accounts of his brokerage clients in order to make it look like he was a talented stock selector. In reality, Siva was a criminal. Together with the trading of James Moodhe, Siva’s client from whom Siva obtained the illicit information, Siva’s trading resulted in millions in illicit profits on which Siva was paid tainted commissions. Corrupt brokers like Siva will be held to account for their crimes. This Office is committed to identifying and prosecuting inside information-sharing networks that undermine our nation’s securities markets.”
According to the allegations contained in the Indictment filed against SIVA and his co-conspirators, and statements made in related court filings and proceedings:
The Investment Bank and Rivas
From August 2013 through May 2017, Rivas was employed as a technology consultant in the Research and Capital Markets Technology Group of an investment bank (the “Investment Bank”). In this role, Rivas had access to an internal, proprietary system maintained by the Investment Bank (the “Deal Tracking System”) containing material, nonpublic information (“Inside Information”) about potential and unannounced merger and acquisition transactions, including tender offers, involving the Investment Bank. The Investment Bank’s written policies prohibited the unauthorized disclosure of confidential information, which included Inside Information. Rivas had a duty, among other obligations, to maintain the confidentiality of all of the Investment Bank’s confidential information, including the Inside Information.
Overview of Insider Trading Schemes
From August 2014 through April 2017, Rivas violated the duties of confidentiality he owed to the Investment Bank by serially misappropriating material, nonpublic information from the Investment Bank’s Deal Tracking System and passing that information along to friends so that they could utilize it to make profitable trades. On more than 50 occasions between August 2014 and April 2017, Rivas provided Inside Information about contemplated but unannounced merger and acquisition (“M&A”) transactions and tender offer transactions involving clients and prospective clients of the Investment Bank to friends who used that information to purchase and sell securities. In total, the insider trading based on Inside Information misappropriated by Rivas resulted in illicit profits of more than $5 million through trading in more than two dozen securities. The Inside Information was passed through three tipping chains.
The Rivas-Moodhe-Siva Tipping Chain
SIVA was a member of the first of three tipping chains outlined in the Indictment. In this tipping chain, Rivas passed inside information to Moodhe, whose daughter Rivas was living with and dating. Moodhe then passed the inside information to SIVA, a broker and financial advisor at a global investment bank headquartered in Manhattan, New York. Moodhe and SIVA had known each other for more than a decade and SIVA also became Moodhe’s broker.
Between 2015 and 2017, Moodhe shared the inside information he received from Rivas with SIVA so that SIVA could execute profitable trades on behalf of his financial advisory clients and himself. By at least early 2016, SIVA understood that the source of the stock tips provided by Moodhe was a corporate insider at an investment bank with whom Moodhe was friends.
In order to keep their scheme from being exposed, including by SIVA’s employer, Moodhe and SIVA developed code phrases to use on the telephone so that Moodhe could surreptitiously provide SIVA with updated inside information. To further hide their scheme, SIVA and Moodhe began going to various diners outside of New York City so that Moodhe could provide stock tips to SIVA in person. During these meetings, Moodhe read from pieces of paper provided to him by Rivas, which contained detailed information about confidential impending deals, including ticker symbols, deal values and expected announcement dates. In order to hide the fact that SIVA was placing trades in his client accounts based on illicit stock tips from Moodhe, SIVA also instructed Moodhe to mark his dirty trades “solicited” in his firm’s online trading platform, so that it would appear that SIVA had directed the trades as opposed to the suggestion coming from Moodhe. On occasion, SIVA also instructed Moodhe to wait to trade on a tip from Rivas until SIVA could first trade in the security on behalf of his financial advisory clients, thereby making it look like SIVA had originated the idea.
In total, between 2015 and 2017, SIVA and Moodhe used Inside Information Rivas provided to trade ahead of the public announcements of more than two dozen transactions, including numerous tender offers, allowing SIVA and Moodhe to generate illicit profits in excess of $3 million. SIVA also earned thousands of dollars in commissions on the illegal trades entered on behalf of his clients.
* * *
SIVA, 56, of Morristown, New Jersey, pled guilty to one count of conspiracy to commit securities fraud and fraud in connection with a tender offer, which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. SIVA will be sentenced on February 11, 2018, before U.S. District Judge Alison J. Nathan.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for their assistance. He added that the investigation is continuing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Andrea M. Griswold and Samson Enzer are in charge of the prosecution.
StarKist Co. Agrees to Plead Guilty for Price FixingRead the Press Release
StarKist Co. has agreed to plead guilty for its role in a conspiracy to fix prices of packaged seafood sold in the United States, the Department of Justice announced today.
According to a one-count felony charge filed today in the U.S. District Court for the Northern District of California in San Francisco, StarKist and its co-conspirators agreed to fix the prices of canned tuna fish from as early as November 2011, through at least as late as December 2013. In addition to pleading guilty, StarKist has agreed to cooperate in the investigation. StarKist faces a criminal fine of up to $100 million. The amount of StarKist’s fine will be determined at a sentencing hearing and the plea agreement is subject to court approval.
“The conspiracy to fix prices on these household staples had direct effects on the pocketbooks of American consumers,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “All Americans have the right to the benefits of free and open competition — the best goods and services at a price free from collusion. We will continue to hold companies and individuals who cheat consumers accountable.”
“Our citizens' confidence in the ability to buy goods within an unbiased market is key to sustaining an efficient and fair economy,” said Special Agent in Charge John F. Bennett, FBI San Francisco. “This investigation stands as a symbol of our commitment to holding corporations and senior leadership accountable and ensuring that activities such as price fixing will not be tolerated.”
A total of six charges have resulted from this federal antitrust investigation into the packaged seafood industry, which is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the packaged seafood industry should contact the Antitrust Division’s San Francisco Office at (415) 934-5300, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at (415) 553-7400.
South Bend Man Sentenced to 60 Months in PrisonRead the Press Release
SOUTH BEND – Jesse Houston, 25 years old, of South Bend, Indiana, was sentenced by U.S. District Court Judge DeGuilio upon his plea of guilty to possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
Houston was sentenced to 60 months in prison followed by 2 years of supervised release
According to documents in the case, in May of 2018 Houston possessed with intent to distribute 2 pounds of marijuana. He also possessed a loaded handgun to further his drug trafficking activity. The marijuana and firearm were found when law enforcement searched his bedroom during the execution of a search warrant.
This case was investigated by the FBI and prosecuted by Assistant United States Attorney Joel Gabrielse.
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Silver Spring Physician Indicted on Federal Charges for Allegedly Obtaining over Half a Million Dollars of Her Deceased Mother’s Retirement BenefitsRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Crystal Mebane McGinty, age 58, of Silver Spring, Maryland, with mail fraud, theft of government property, and aggravated identity theft, in connection with a scheme to obtain over $517,000 of her deceased mother’s social security and City of New York teachers’ retirement benefits. The indictment was returned on July 31, 2018, and unsealed today. McGinty previously had an initial appearance in U.S. District Court in Greenbelt and was released under the supervision of U.S. Pretrial Services.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General, Philadelphia Field Division.
“Criminals who lie, cheat, and steal to obtain benefits to which they are not entitled defraud not only the Social Security Administration, but all law-abiding citizens,” said U.S. Attorney Robert K. Hur. “Federal prosecution of these cases serves to punish the lawbreakers and to deter others who may be tempted to do the same.”
According to the three-count indictment and other court documents, McGinty’s mother was a Maryland resident who began receiving monthly retirement benefits from the Teachers’ Retirement System of the City of New York (TRSCNY) in 1972, and began receiving Social Security Retirement Insurance Benefits (RIB) in 1989. According to her death certificate, McGinty’s mother died of natural causes in 2005, and McGinty, a practicing physician, was listed as the informant on the death certificate.
The indictment alleges that from June 2005 through June 2018, McGinty did not notify TRSCNY or SSA that her mother had died. In addition, the indictment alleges that McGinty deposited her mother’s TRSCNY checks, which were mailed to McGinty’s home, into a bank account that McGinty maintained in her name, her mother’s name, and the name of her mother’s deceased husband. The checks bore her mother’s signature, which McGinty knew was forged. McGinty’s mother’s SSA RIB payments were also deposited into that bank account. Further, McGinty allegedly signed and submitted several proof-of-life forms to TRSCNY, including some in which she identified herself as her deceased mother’s physician, in order to continue to receive her mother’s retirement benefits. McGinty also allegedly called TRSCNY posing as her deceased mother and providing her deceased mother’s identifying information, in an effort to get pension benefits reinstated.
According to the indictment, McGinty routinely withdrew her deceased mother’s TRSCNY and SSA retirement benefits from the bank shortly after they were deposited, by direct debit, cash withdrawals, debit card transactions, checks, and transfers to family members. McGinty allegedly used the funds to pay utility bills, mortgage fees, credit cards, and other expenditures. According to court documents, the expenditures also included fees associated with renewing McGinty’s Health Professional License, tuition at a private high school in Washington, D.C., international and domestic travel, and a cruise vacation.
If convicted, McGinty faces a maximum sentence of 20 years in prison for mail fraud; a maximum of 10 years in prison for theft of government property; and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the SSA Office of Inspector General for its work in the investigation. Mr. Hur thanked Special Assistant U.S. Attorney Michael Davio, who is prosecuting the case.
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Shreveport felon, Lafayette felon plead guilty to possessing firearmsRead the Press Release
SHREVEPORT/ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a Shreveport felon and a Lafayette felon pleaded guilty to possessing firearms in two separate cases.
Shreveport felon pleads guilty to possessing revolver
Roderick Charles Scott, 43, of Shreveport, pleaded guilty October 10, 2018 before U.S. District Judge S. Maurice Hicks Jr. to one count of felon in possession of a firearm. According to the guilty plea, Shreveport police responded to a shooting in the Hollywood area on June 23, 2017. Upon arrival, police observed an individual enter a home on Miles Street. Police ordered the individual out of the home and discovered it was Scott. When approached, he had a Rossi .38 special revolver clenched in his right hand. Police confiscated the gun and arrested Scott.
Scott faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for February 12, 2019. The ATF and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Aaron J. Crawford is prosecuting the case.
Lafayette felon pleads guilty to possessing two firearms
Kenyatta Edmond, 40, of Lafayette, Louisiana, pleaded guilty Tuesday before U.S. District Judge Dee D. Drell to one count of felon in possession of a firearm.
According to the guilty plea, a concerned citizen reported on January 22, 2018 to Lafayette police that a man was unconscious behind the wheel of a car at the intersection of Evangeline Thruway and Mudd Avenue. An officer approached the vehicle and saw Edmond slumped forward appearing to be asleep. The officer saw a pistol in Edmond’s lap with his hand around the grip. The officer then ordered Edmond out of the vehicle and placed him under arrest. Edmond told the officer that he had a second firearm in the vehicle. The officer searched the vehicle and found a Berretta Model PX4 Storm .40-caliber semi-automatic pistol and a Taurus Model Judge .410 gauge revolver. After further investigation, it was discovered that the revolver had been previously reported stolen and that Edmonds has four prior felony convictions.
Edmond faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for February 1, 2019. The ATF and the Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog is prosecuting the case.
These cases were brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Roswell Felon Sentenced to Seven Years for Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Shane Mann, 31, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 84 months in prison for violating the federal firearms laws by being a felon in possession of a firearm and ammunition. Mann will be on supervised release for three years after completing his prison sentence.
The Bureau of Alcohol, Tobacco, Firearms and Explosive arrested Mann in Feb. 2018, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition on Aug. 9, 2017, in Chaves County, N.M. According to the complaint, law enforcement officers found multiple firearms and ammunition, and drug paraphernalia in Mann’s residence while executing a state search warrant. Mann was prohibited from possessing firearms or ammunition because of his prior felony convictions for shooting from a motor vehicle, aggravated fleeing a law enforcement officer, and possession of a controlled substance.
On May 15, 2018, Mann pled guilty to a felony information charging him with being a felon in possession of a firearm and ammunition. In entering the guilty plea, Mann admitted that on Aug. 9, 2017, law enforcement officers found firearms and ammunition in his residence, including a loaded handgun that was under a pillow in the bed in which Mann was laying, during the execution of the warrant. Mann acknowledged that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Roswell Police Department and the HIDTA Chaves County Metro Narcotics Task Force. The case was prosecuted by Assistant U.S. Attorney Alfred J. Perez of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Repeat Sex Offender from Sioux Falls Sentenced for Distributing Child Pornography and Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of two counts of distributing child pornography, one count of receiving child pornography, and one count of failing to register as a sex offender was sentenced on October 15, 2018, by U.S. District Judge Karen E. Schreier. The conviction was the result of a federal jury trial in Sioux Falls in July of 2018.
Maksim Stefanyuk, age 27, was sentenced to 262 months (21.8 years) in federal prison on Counts 1 through 3, 120 months in federal prison on Count 4, to be served concurrently, followed by 5 years of supervised release, and a $5,400 special assessment to the Federal Crime Victims Fund.
“The conviction of this repeat offender for these horrible crimes, and the substantial federal prison sentence that he will serve, are a credit to the hard work and dedication of the South Dakota Internet Crimes Against Children Task Force,” said U.S. Attorney Parsons. “The ICAC Task Force is a model of federal, state, and local law enforcement cooperation. We owe them a debt of gratitude for their tireless public service in their collective mission of protecting our children from harm.”
Stefanyuk was indicted by a federal grand jury on May 9, 2017.
Previously, Stefanyuk had pled guilty to possessing child pornography in 2014. After serving his sentence in federal prison, Stefanyuk was released in April of 2016. He registered as a sex offender and reported that he worked near Brandon, South Dakota, but lived in Hills, Minnesota. After officers with the South Dakota Internet Crimes Against Children Task Force downloaded child pornography from Stefanyuk from a location in Sioux Falls, they obtained a search warrant. Not only did they discover child pornography on his computer, but also that he had been living in Sioux Falls without registering as a sex offender. Stefanyuk went to trial and a jury convicted him of all counts.
This case was investigated by the Minnehaha County Sheriff’s Office, the South Dakota Division of Criminal Investigation, and the U.S. Homeland Security Investigations, all of which are part of the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Stefanyuk was immediately turned over to the custody of the U.S. Marshals Service.
Providence Man Sentenced for Bank Fraud, Aggravated ID TheftRead the Press Release
PROVIDENCE, RI – A Providence man who stole the personal banking information of several individuals, including a retired Providence firefighter, and used that information to gain access to their bank accounts, was sentenced on Wednesday to 60 months in federal prison.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Jamal Mansaray, 29, to serve 5 years supervised release upon completion of his term of incarceration and to pay restitution in the amount of $74,300 to Citizens Bank.
Mansaray pleaded guilty on May 30, 2018, to conspiracy to commit bank fraud and aggravated identity theft.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 70 months to 84 months, plus a consecutive term of 24 months incarceration on the charge of aggravated identity theft. The government recommended the Court impose a total sentence of 70 months incarceration.
Mansaray’s sentence is announced by United States Attorney Stephen G. Dambruch, Providence Police Chief Colonel Hugh T. Clements, Jr., Special Agent in Charge of the United States Secret Service Stephen A. Marks, and Special Agent in Charge of the Boston Division of the Federal Bureau of Investigation Harold H. Shaw.
A Providence Police Department investigation determined that in September 2017, an individual attempted to cash a check drawn on a Citizens Bank account belonging to a retired Providence firefighter without his consent. In an effort to confirm that cashing the check was permissible, an employee of the bank called the retired firefighter on a telephone number on file with the bank. The phone call actually rang to Mansaray’s cell phone. After Mansaray failed to properly respond to all of the questions posed by the bank employee, the employee declined to cash the check.
The investigation revealed that the telephone number on file with the bank had been altered and other personal identifying information on file with the bank belonging to the firefighter had been compromised. Further investigation determined that $82,000 was transferred from the retired firefighter’s money market account to his checking account without his knowledge.
Further investigation revealed that Mansaray had accessed funds belonging to at least four other individuals. At the time of his guilty plea, Mansaray admitted to fraudulently obtaining a total of $74,300.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by the Providence Police Department, with the assistance of the United States Secret Service and the Federal Bureau of Investigation.
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Pharmacist Indicted for Taking Drugs, Carrying Firearm in Violation of Court OrderRead the Press Release
PADUCAH, Ky. – A Benton, Kentucky pharmacist was charged by a federal grand jury indictment for stealing medications, announced United States Attorney Russell M. Coleman.
The indictments charge Kyle W. Humphrey, age 34, with stealing pre-retail prescription medications, mislabeling prescription medication in order to defraud or mislead, and wrongful use of health information; the defendant was also a prohibited person in possession of a firearm and has also been charged in a separate indictment with that felony.
According to the indictment, on or about August 9, 2017, while working for a pharmacy in Calloway County, Humphrey concealed pre-retail medical products including: Finasteride, Allopurinol, Eliquis ®, Strattera®, ProAir® HFA, Farxiga®, Cefprozil, Tamiflu®, Duloxetine, Aripiprazole, Ergocalciferol, Levofloxacin, Bystolic®, Xarelto®, Clindamycin Palmitate HCL, Mylan® Norethindrone tablets, Camilia® Norethindrone tablets, Testosterone gel tubes, and Testosterone Cypionate. Between April 9, 2017 and August 9, 2017, Humphrey altered the labeling of allopurinol, a drug held for sale in the pharmacy. He is also charged with obtaining identifiable health information relating to an individual with the intent to use the information for personal gain.
“When prescription drugs are diverted from the legal supply chain, there is no longer any assurance that the products are safe and effective for their intended uses,” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations. “We will continue to pursue and bring to justice those who jeopardize consumers’ trust in their medications.”
Humphrey, was prohibited from carrying firearms as part of a court order issued by Calloway County Family Court on August 17, 2017; on January 2, 2018, Humphrey violated that order and was also charged with being a prohibited person in possession of a firearm.
If convicted, Humphrey faces no more than 20 years for concealment of pre-retail medical products, no more than three years for misbranding drugs, and no more than 10 years for wrongful use of health information. Humphrey also faces no more than 10 years for possessing a firearm while under a Domestic Violence Order.
Assistant United States Attorney Madison Sewell is prosecuting the case. The Food and Drug Administration Office of Criminal Investigations led the investigation with assistance from Calloway County Sherriff’s Department, and the Kentucky Board of Pharmacy. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) also assisted in the investigation.
Pendleton Man Found Guilty of Abusive Sexual Contact on the Umatilla Indian ReservationRead the Press Release
PORTLAND, Ore. – On Wednesday, October 17, 2018, a federal jury in Portland found Shane Britton, 43, of Pendleton, Oregon, guilty of abusive sexual contact.
According to court documents and evidence presented at trial, in June 2016, Britton was staying at a residence shared by the victim and her mother on the Umatilla Indian Reservation. The victim and her mother are both enrolled members of the Confederated Tribes of the Umatilla Indian Reservation. Britton is not a tribal member.
During his stay, Britton subjected the victim to a series of unwanted and progressively more invasive physical encounters. In a recorded interview, Britton initially denied the allegation of abusive sexual contact, but later admitted he inappropriately touched the victim. Britton eventually told law enforcement officers that “in no way shape or form did [the victim] do anything wrong or provoke” his abusive conduct.
Britton faces a maximum sentence of two years in prison, a $250,000 fine and five years’ supervised release. He will be sentenced on Wednesday, January 23, 2019, before U.S. District Judge Michael H. Simon.
The FBI investigated this case in partnership with the Umatilla Tribal Police Department. It was prosecuted by Jennifer Martin and Natalie Wight, Assistant U.S. Attorneys for the District of Oregon.
Orlando Man Pleads Guilty to Theft of MailRead the Press Release
Orlando, Florida – Carlos Dayquan Rodriguez (23, Orlando) today pleaded guilty to theft of mail. He faces a maximum penalty of five years in federal prison. His sentencing is scheduled for January 4, 2019.
According to court documents, on July 1, 2018, officers from the Orlando Police Department responded to reports that an individual, later identified as Rodriguez, was breaking in to the Neighborhood Delivery Collection Box Units (NDCBU) in an apartment complex. The responding officers apprehended Rodriguez as he was attempting to leave the area. At the time of his arrest, the officers found a wire cutter in Rodriguez’s pocket and stolen mail in his vehicle. Surveillance footage showed Rodriguez breaking into the NDCBU and stealing mail from several boxes.
This case was investigated by the Orlando Police Department and the U.S. Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Kara M. Wick.
One Man Pleads Guilty, Another Sentenced, in Methamphetamine-Trafficking ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that EULALIO TORRES-CADENAS, age 41, of Houston, Texas, pleaded guilty yesterday to one count of conspiring to traffic 500 grams or more of a mixture containing methamphetamine in the Eastern District of Louisiana. TORRES-CADENAS faces a mandatory minimum sentence of ten years in prison, a maximum life sentence, a fine of up to $10,000,000 and at least five years of supervised release. U.S. District Judge Susie Morgan set sentencing for TORRES-CADENAS on January 23, 2019.
Also yesterday, Judge Morgan sentenced codefendant PETER GIANDALONE, age 43, of New Orleans, to 48 months imprisonment and 5 years supervised release. GIANDALONE had previously pled guilty to conspiring to traffic 500 grams or more of a mixture containing methamphetamine.
TORRES-CADENAS and GIANDALONE are two of the eleven defendants charged in a 23-count federal indictment. Specifically, the indictment alleges that TORRES-CADENAS and GIANDALONE conspired to sell large quantities of methamphetamine with codefendants Stefen Daigle, Julien Polk, Paul Melancon, Jeffrey Clines, James Hatch, Angel Renee Vidaure, Delio Alfredo Lopez-Lopez, Lindsey Lopez, and Jacob Higginbotham. The indictment also alleges a number of individual acts of distributing and possessing with intent to distribute methamphetamine, as well as firearm offenses for codefendants Hatch, Vidaure, and Lopez-Lopez. Law enforcement developed evidence against this group of defendants using controlled purchases of methamphetamine, traffic stops and seizures, consensually recorded text messages as well as phone calls, search warrants, cooperator information, and self-incriminating statements.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, Louisiana State Police, Jefferson Parish Sheriff’s Office, Texas Department of Public Safety, Texas Highway Patrol, Montgomery County (Texas) Sheriff’s Office, Immigration and Customs Enforcement, AMTRAK Police, and the Orleans Parish District Attorney’s Office. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
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Northeast Ohio Man Sentenced to 5 Years for Buying Gun for Convicted Felon who Killed Westerville Police OfficersRead the Press Release
COLUMBUS, Ohio – Gerald A. Lawson III, 31, of Warrensville Heights, Ohio, was sentenced in U.S. District Court to 60 months in prison for acting as a straw purchaser for Quentin L. Smith, a convicted felon who shot and killed two Westerville Police Officers on February 10, 2018.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the sentence imposed today by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, when Westerville Police Officers Anthony Morelli and Eric Joering responded to a domestic disturbance call on Cross Wind Drive in Westerville on February 10, Smith was armed with a Glock semi-automatic handgun.
As a convicted felon, Smith is prohibited from purchasing or possessing a firearm.
Smith provided Lawson, a longtime friend, money for the firearm and an extra $100 to compensate Lawson – who knew Smith had been convicted of a felony burglary offense and domestic violence – for buying the gun for him.
On May 18, 2017, Lawson purchased the Glock handgun at Stonewall Gun Shop and Pistol Range in Broadview Heights, Ohio. When purchasing the handgun, he lied on an ATF Firearms Transaction Record Form and said he was not acquiring it on behalf of another person.
Lawson pleaded guilty in May 2018 to aiding and abetting the possession of a firearm by a prohibited person.
“As a result of his prior convictions, Smith should never had access to the firearm he used to kill Officers Joering and Morelli,” U.S. Attorney Glassman said. “Lawson knew that Smith had a violent past, including a history of domestic violence, that prohibited Smith from purchasing a firearm, and Lawson chose to arm him with a deadly handgun anyway. To be clear, Lawson did not kill the officers. Smith did. But Lawson is responsible for putting a gun in Smith’s hands, and his sentence today reflects that responsibility.”
U.S. Attorney Glassman added, “More broadly, felons should not have access to guns. Straw purchasing must stop.”
U.S. Attorney Glassman commended the investigation of this case by ATF, and Assistant United States Attorney Noah R. Litton, who is prosecuting the case.
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New Orleans Man Pleads Guilty to Hate Crime in Shooting of Three African-American Men Attempting to Evacuate After Hurricane KatrinaRead the Press Release
Bourgeois shot at three young African-American men fleeing Hurricane Katrina in 2005
Roland J. Bourgeois, Jr., 55, of New Orleans, LA, appeared yesterday before Senior U.S. District Court Judge Mary Ann Vial Lemmon and pleaded guilty to charges that, in the wake of Hurricane Katrina, he shot at three young African-American men because of their race as the men attempted to evacuate New Orleans, announced Acting Assistant Attorney General for the Civil Rights Division John Gore; U.S. Attorney for the Eastern District of Louisiana Peter G. Strasser; and FBI New Orleans Division Special Agent in Charge Eric J. Rommal.
According to documents filed in connection with the plea, shortly after Hurricane Katrina struck New Orleans, Bourgeois and other white male residents of the Algiers Point neighborhood agreed that they would use force to keep out African Americans from their neighborhood. They moved fallen trees to barricade the streets near their homes and started armed patrols of the neighborhood.
On Sept. 1, 2005, three young African-American men – D.H., M.A., and C.C. – walked to Algiers Point in an effort to reach the ferry landing, a site that state and federal agencies were using as an evacuation point. When the three men crossed a barricade constructed by Bourgeois and others, Bourgeois opened fire with a shotgun, wounding all three men. After the men fled, Bourgeois boasted that he had “got one” and pledged to “kill that [racial slur]” if the man had survived. Bourgeois warned one of his neighbors: “Anything coming up this street darker than a brown paper bag is getting shot.”
“This guilty plea demonstrates the Justice Department’s continued commitment over time to holding perpetrators of hate crimes accountable for their actions,” said Acting Assistant Attorney General John Gore. “All Americans have the right to be free from violence or physical harm, regardless of their race.”
“Upholding the civil rights of our citizens is one of the most important duties of the DOJ. This plea demonstrates the resolve of law enforcement to hold individuals responsible for their actions, despite the passage of time,” said U.S. Attorney Strasser. “Hopefully this plea brings some measure of finality to those affected by this crime and to this city that endured so much in the days following Hurricane Katrina.”
“Even though these crimes and Hurricane Katrina occurred over 13 years ago, the FBI does not forget. Today’s guilty plea is proof that the arms of justice are long and we will continue to seek out those who violate and deprive others of their civil rights,” said FBI Special Agent in Charge Eric J. Rommal.
Bourgeois will be sentenced on Jan. 17, 2019. Under the terms of the plea agreement, Bourgeois faces a minimum of five years of imprisonment and a maximum of ten years. Bourgeois was previously charged in a five-count indictment in July 2010.
The FBI conducted the investigation. The case is being prosecuted by Assistant United States Attorney David Howard Sinkman of the Eastern District of Louisiana and Special Litigation Counsel Jared Fishman and Trial Attorney Mary J. Hahn of the Civil Rights Division.
New Orleans Man Pleads Guilty to Hate Crime in Shooting of Three African-American Men Attempting to Evacuate After Hurricane KatrinaRead the Press Release
WASHINGTON –Roland J. Bourgeois, Jr., 55, of New Orleans, LA, appeared yesterday before Senior U.S. District Court Judge Mary Ann Vial Lemmon and pleaded guilty to charges that, in the wake of Hurricane Katrina, he shot at three young African-American men because of their race as the men attempted to evacuate New Orleans, announced Acting Assistant Attorney General for the Civil Rights Division John Gore; U.S. Attorney for the Eastern District of Louisiana Peter G. Strasser; and FBI New Orleans Division Special Agent in Charge Eric J. Rommal.
According to documents filed in connection with the plea, shortly after Hurricane Katrina struck New Orleans, Bourgeois and other white male residents of the Algiers Point neighborhood agreed that they would use force to keep out African Americans from their neighborhood. They moved fallen trees to barricade the streets near their homes and started armed patrols of the neighborhood.
On Sept. 1, 2005, three young African-American men – D.H., M.A., and C.C. – walked to Algiers Point in an effort to reach the ferry landing, a site that state and federal agencies were using as an evacuation point. When the three men crossed a barricade constructed by Bourgeois and others, Bourgeois opened fire with a shotgun, wounding all three men. After the men fled, Bourgeois boasted that he had “got one” and pledged to “kill that [racial slur]” if the man had survived. Bourgeois warned one of his neighbors: “Anything coming up this street darker than a brown paper bag is getting shot.”
“This guilty plea demonstrates the Justice Department’s continued commitment over time to holding perpetrators of hate crimes accountable for their actions,” said Acting Assistant Attorney General John Gore. “All Americans have the right to be free from violence or physical harm, regardless of their race.”
“Upholding the civil rights of our citizens is one of the most important duties of the DOJ. This plea demonstrates the resolve of law enforcement to hold individuals responsible for their actions, despite the passage of time,” said U.S. Attorney Strasser. “Hopefully this plea brings some measure of finality to those affected by this crime and to this city that endured so much in the days following Hurricane Katrina.”
“Even though these crimes and Hurricane Katrina occurred over 13 years ago, the FBI does not forget. This guilty plea is proof that the arms of justice are long and we will continue to seek out those who violate and deprive others of their civil rights,” said FBI Special Agent in Charge Eric J. Rommal.
Bourgeois will be sentenced on Jan. 17, 2019. Under the terms of the plea agreement, Bourgeois faces a minimum of five years of imprisonment and a maximum of ten years. Bourgeois was previously charged in a five-count indictment in July 2010.
The FBI conducted the investigation. The case is being prosecuted by Assistant United States Attorney David Howard Sinkman of the Eastern District of Louisiana and Special Litigation Counsel Jared Fishman and Trial Attorney Mary J. Hahn of the Civil Rights Division.
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New Charges Filed Against Raleigh Investment Adviser Including Conspiracy to Falsify SEC Records & Aggravated Identity TheftRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that a federal grand jury has returned a Superseding Indictment charging STEPHEN CONDON PETERS, 45, of Raleigh, North Carolina, with four additional charges.
The original Indictment, issued in December of 2017, included one count of Investment Advisor Fraud; one count of Fraud in the Sale of Unregistered Securities; nine counts of Wire Fraud; 4 counts of Engaging in Monetary Transactions in Criminally Derived Property; and one count of Corruptly Endeavoring to Influence a Federal Agency.
The Superseding Indictment includes four additional charges, consisting of Aggravated Identity Theft; Conspiracy to Make False Statements and Documents; Making and Using False Statements and Documents; and Falsifying and Concealing Documents During an SEC Examination. The Superseding Indictment also includes additional assets to be forfeited upon conviction.
The Superseding Indictment alleges that beginning in 2009, and continuing into 2017, PETERS orchestrated the sale of VisionQuest Capital LLC promissory notes (the "Capital LLC Notes"), primarily to Visionquest Wealth Management LLC clients. In exchange for an investment of funds, the Capital LLC Notes purported to promise investors an 8% or 9% annual return on principal over a five year term. In connection with the sale of the Capital LLC Notes, PETERS represented and caused to be represented to investors that the Capital LLC Notes were a low risk investment, and that the note proceeds would be invested into revenue generating or income-producing businesses. In fact, PETERS stole large portions of the investor proceeds and carried out a "Ponzi" scheme on investors.
In terms of new charges, the Superseding Indictment contains additional allegations that PETERS, both directly and through his staff at Visionquest Wealth Management, LLC, forged, fabricated, and concealed documents and records in an effort to thwart an examination by the United States Securities and Exchange Commission (SEC) in late 2016. It is alleged that PETERS forged and backdated a letter to his former compliance officer purporting to place the burden of disclosing PETERS’S conflicts of interest upon the compliance officer. PETERS further directed the fabrication of numerous other records given to the SEC examiners, including client balance sheets, wealth management contracts, outside business activity disclosures, and internal compliance memoranda.
At present, no date has been scheduled for PETERS to appear in court concerning the new charges. PETERS is presently set to be arraigned in December 2018 by U.S. District Judge James C. Dever, III.
In addition to the penalties on previously charged offenses, PETERS now faces the following additional penalties: For Aggravated Identity Theft, not less or more than 2 years imprisonment, consecutive to any other sentence imposed; for Falsifying and Concealing Documents During an SEC Examination, not more than 20 years imprisonment; for Conspiracy to Make False Statements and Documents, not more than 5 years imprisonment; for Making False Statements and Documents, not more than 5 years imprisonment. PETERS also faces up to $1 Million in additional fines, as well as further forfeiture of property.
An indictment is an allegation of a crime. The defendant is presumed under the law to be innocent until proven guilty.
The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. Assistant United States Attorney William M. Gilmore represents the United States.
Middlesex County, New Jersey, Tax Preparer Charged with Additional Tax Fraud CountsRead the Press Release
NEWARK, N.J. – A Keasbey, New Jersey, tax preparer who was indicted May 3, 2018, for allegedly using false information to increase his clients’ tax refunds and secretly diverting a portion of those funds into accounts that he controlled was charged today with 11 new tax fraud counts, U.S. Attorney Craig Carpenito announced.
A federal grand jury returned a superseding indictment against David Patterson, 37, adding eight counts of aiding and abetting in the filing of false tax returns and three counts of failure to file tax returns. He was originally charged by indictment with 16 counts of aiding and abetting in the filing of false tax returns. Patterson will be arraigned on the new indictment at a date to be determined.
According to the indictment:
Patterson owned D&D Tax Service LLC, a tax preparation business located in Keasbey. Patterson allegedly prepared multiple fraudulent tax returns on behalf of his clients by falsifying their income, charitable contributions, employee business expenses, and education costs, all so his clients would receive higher refunds than those to which they were actually entitled. Patterson then diverted a portion of the tax refunds to bank accounts he controlled without his clients’ knowledge or consent. He also failed to file an individual tax return and pay federal income taxes for calendar years 2013 through 2015.
The false filing counts each carry a maximum potential penalty of three years in prison and a $250,000 fine. The failure to file counts each carry a maximum potential penalty of up to one year in prison and a $100,000 fine.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, the Department of Justice Tax Division, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit and Trial Attorney Eric Powers of the Department of Justice Tax Division.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: James Friedman Esq., New Brunswick, New Jersey
Mexican national pleads guilty to transporting 9 illegal aliens in Calcasieu ParishRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a Mexican national pleaded guilty last week to transporting nine illegal aliens in Calcasieu Parish.
Felix Manuel Juarez-Peralta, 28, of Mexico, pleaded guilty Friday before U.S. Magistrate Judge Kathleen Kay to one count of illegal alien transportation. According to the guilty plea, law enforcement officers conducted a traffic stop on a vehicle June 7, 2018 traveling west on Interstate 10 in Sulphur, Louisiana. Officers found Juarez-Peralta and nine illegal aliens in a Toyota 4Runner. One of the passengers was an unaccompanied minor. After questioning the defendant, Juarez-Peralta admitted that he knew the passengers were illegal aliens and that he had been paid to transport them.
One of the illegal aliens traveling in the vehicle was charged with illegal re-entry. Jonathan Flores-Hernandez, 22, of Mexico, pleaded guilty on Monday before U.S. District Judge S. Maurice Hicks Jr. to one count of re-entry of a removed alien and was sentenced to time served. He was previously arrested on April 30, 2018 near Rio Grande, Texas, and was deported to Mexico via the Hidalgo, Texas, port of entry on May 3, 2018.
Homeland Security Investigations, U.S. Border Patrol and Calcasieu Combined Anti-Drug Team conducted the investigation. Assistant U.S. Attorney David J. Ayo prosecuted the case.
Medical Director of Substance Abuse Treatment Facility Pleads Guilty to Unlawfully Distributing Opioids, Barbiturates, and BenzodiazepinesRead the Press Release
The Medical Director of a substance abuse treatment center in Wellington, Florida, pled guilty today to unlawfully distributing controlled substances (opioids, barbiturates, and benzodiazepines).
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak-OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.
Kenneth Rivera-Kolb, M.D., 65, of Largo, pled guilty to one count of conspiracy to unlawfully dispense and distribute controlled substances (Case No. 18cr80121). The defendant faces a maximum of 20 years in prison. Sentencing is scheduled for January 8, 2019, at 9:00 a.m. before Senior U.S. District Court Judge James I. Cohn.
According to court documents, in 2013, Rivera-Kolb was hired to serve as the Medical Director of Angel’s House LLC (“Angel’s Recovery”), a substance abuse treatment facility located in Wellington, Florida. Angel’s Recovery was owned and operated by Tovah Lynn Jasperson and her father, Alan Martin Bostom (Case No. 17cr80194). In addition to the treatment facility, Angel’s Recovery also operated sober homes that were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction.
As the medical director, Dr. Rivera-Kolb was purportedly responsible for evaluating patients and prescribing medically necessary treatment and testing. In February 2015, Rivera-Kolb had his medical license suspended by the State of Florida for a period of four years. Despite the absence of a medical license, the defendant continued to serve as the medical director of Angel’s Recovery, and knowingly prescribed controlled substances at the facility. Jasperson and Bostom were aware of Rivera-Kolb’s license suspension, having hired chauffeurs to transport him to hearings before the Board of Medicine of the State of Florida, but continued to employ him as a treating physician and allowed him to write prescriptions for patients. The defendant continued to serve in this capacity until at least September 2015.
Jasperson previously pled guilty to conspiracy to commit health care fraud and was sentenced to 78 months in prison. Bostom previously pled guilty to knowingly and willfully falsifying, concealing, and covering up by a trick, scheme, and device a material fact in a matter involving health care benefit programs and was sentenced to 30 months in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Florida Division of Investigative and Forensic Services, Amtrak-OIG, DOL-EBSA, and NICB. This matter was prosecuted by Assistant United States Attorneys A. Marie Villafaña and Alexandra Chase.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov/ or at http://pacer.flsd.uscourts.gov/.
Leominster Man Pleads Guilty to Passport FraudRead the Press Release
BOSTON – A Leominster man pleaded guilty yesterday in federal court in Boston to passport fraud.
“John Doe,” whose true identity and age are presently unknown, and whose last known address was in Leominster, pleaded guilty to one count of making false statements in a passport application. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 17, 2019.
At the plea hearing, Doe admitted that in December 2011, he entered a Jamaica Plain post office and used the name, date of birth, and Social Security number of a United States citizen from Puerto Rico to apply for a United States passport.
The charge of passport fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorneys Sandra S. Bower and Lauren A. Graber of Lelling’s Criminal Division are prosecuting this case.
Lenoir City Resident Indicted for Fraud Scheme Involving Elderly VictimsRead the Press Release
KNOXVILLE, Tenn. – On October 16, 2018, a federal grand jury in Knoxville returned a six-count indictment against Christina Erin Myers, 36, of Lenoir City, Tennessee, charging her with wire fraud and money laundering. Myers appeared before U.S. Magistrate Judge Deborah Poplin in U.S. District Court on October 18, 2018, and pleaded not guilty to the charges included in the indictment.
Myers trial is set for December 18, 2018, in U.S. District Court. If convicted, she faces 20 years in prison.
The indictment alleges that from May 2014 through July 2018, Myers engaged in a scheme to defraud elderly individuals under the guise of selling them residential properties at Williams Ferry Pointe (WFP), which is a senior living community in Lenoir City, Tennessee. WPF is operated by Tennessee Baptist Adult Homes (TBAH), a provider of residential care for senior adults and adults with exceptional needs. She allegedly implemented her scheme by diverting funds that were for the purchase of the real estate to her own personal use and marketing non-existent senior community housing. The indictment further alleges that Myers promoted and sold fictitious investment opportunities and diverted those funds to her own personal use instead of investing them for the victims. In total, Myers fraudulently obtained approximately $518,000. Additional details of her scheme are outlined in the indictment, which is on file with the U.S. District Court and available to the public.
Agencies whose investigation led to indictment of Myers include the Internal Revenue Service - Criminal Investigation and the Lenoir City Police Department. Assistant U.S. Attorney Frank Dale will represent the United States in court proceedings.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Leader of Target Department Store Credit Card Fraud Scheme Sentenced to 6.5 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Frank Her, 39, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to six years and six months in prison for conspiracy to commit access device fraud, possession of device-making equipment, and possession of stolen mail, U.S. Attorney McGregor W. Scott announced.
According to court documents, Her was the leader of an organization numbering up to 50 people who created fraudulent credit cards, stole others’ mail, and compromised victims’ identities. Her specifically conspired with others to traffic in and use unauthorized Target REDcard account numbers to obtain things of value in excess of $1,000 in a one-year period. Her’s conduct involved at least 500 unauthorized and counterfeit cards, affected hundreds of victims, and led to an estimated actual loss of over $200,000 to those victims.
Her operated a credit card and access device “lab” out of his garage in Sacramento, which included possessing and operating voluminous device-making equipment used to create fake credit, debit, gift, and other banking cards, falsifying government identification documents, and washing checks. In particular, Her would create fraudulent Target REDcards in his garage, give them to co-conspirators, and direct them to use those REDcards to buy merchandise and other items at Target stores in the Sacramento area. Her learned an algorithm revealing how to create working Target REDcard account numbers and encoded those account numbers onto blank cards without authorization from Target or the account holders. To avoid detection, Her often sent co‑conspirators to Target alone or, if he went himself, wore disguising clothing and accessories. Her also personally stole mail and directed others to do so.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Matthew M. Yelovich and André M. Espinosa are prosecuting the case.
Five of Her’s six co-defendants have already been sentenced, with the final co-defendant, Amy Her, scheduled to be sentenced on October 25, 2018.
Large Metro Denver Cocaine and Methamphetamine Trafficking Organization Members Indicted and ArrestedRead the Press Release
DENVER – During an early raid this morning, over 100 law enforcement officers arrested members of two separate but related drug trafficking organizations, U.S. Attorney Bob Troyer, FBI Denver Division Acting Special Agent in Charge Janeen Diguiseppi, DEA Denver Division Special Agent in Charge Tim McDermott, and IRS-Criminal Investigations Special Agent in Charge Steven Osborne announced. The Northern Colorado Drug Task Force (NCDTF) also played a critical role in the investigation. Of those indicted, 18 have been arrested (8 of them in Mexico, one in New Mexico, 2 in El Paso) as of the time this press release was issued. The remaining defendants, including 2 in Denver are being sought and will be considered fugitives.
In January 2015, the NCDTF initiated an investigation into the Acosta cocaine trafficking organization. Defendant Omar Chavez-Gutierrez was identified as the head of the Acosta Drug Trafficking Organization (DTO). In March 2017, members of the Denver OCDETF Strike Force started a new investigation into two independent but connected cocaine trafficking organizations. The first DTO was led by Omar Chavez-Gutierrez. The second DTO was directed by Mexican Source of Supply Eduardo Ramon Tarango-Tarango, with assistance from Colorado-based cell head Armando Colacion-Talamantes. The two organizations used a common source of supply, shared distributors, and maintained an overlapping customer base. Both DTOs obtained cocaine from multiple sources in Chihuahua, Mexico. The cocaine crossed the U.S./Mexico border between Juarez and El Paso. Multi-kilogram shipments were transported by couriers to Colorado where the cocaine was delivered to distributors in the Denver metro area, and then sold to lower-level dealers. Bulk cash drug proceeds were hidden in courier vehicles and transported to sources of supply in Mexico.
Based on this information, a federal grand jury in Denver returned five indictments charging 35 defendants with drug trafficking related crimes. During the course of the investigation law enforcement seized approximately 25 kilograms of cocaine, 25 pounds of methamphetamine and $500,000. During today’s raid, an additional 4 kilos of heroin, 1 ¼ kilo of cocaine, $47,000 cash, 5 handguns, 2 rifles (AK-47 and AR-15) and a car were seized.
If convicted, all defendants face multiple drug trafficking charges. Each face not less than 10 years, and up to life, as well as a fine of up to $10,000,000.
This case was investigated by the Denver OCDETF Strike Force, including the FBI, DEA, IRS-CI, the Northern Colorado Drug Task Force and the Colorado Attorney General’s Office. Agencies that assisted with today’s arrests include: the United States Marshals Service, the Aurora Police Department, ATF, ICE, DEA Colorado Springs Residence Office, DEA El Paso, and DEA Las Cruces.
The defendants were prosecuted by Assistant U.S. Attorneys Stephanie Podolak and Zachary Phillips.
The indictments contain allegations, and the defendants are presumed innocent unless and until proven guilty in a court of law.
Kansas Man Pleads Guilty to Not Paying Employment TaxesRead the Press Release
KANSAS CITY – A Jefferson County man pleaded guilty today to failing to pay over payroll taxes to the Internal Revenue Service for a medical staffing company he owned, U.S. Attorney Stephen McAllister said.
David Monhollon, 61, Ozawkie, Kan., pleaded guilty to one count of failing to pay payroll taxes owed by First Call Medical Group, LLC. The company provided medical staffing services to health care providers. In his plea, Monhollon admitted he failed to pay a total of $68,261 for seven quarters of the company’s payroll taxes. He admitted he knew the taxes were due but paid other obligations such as payroll, utilities and telephone bills instead.
He will be sentenced at a later date. He faces a penalty of up to five years in federal prison and a fine up to $250,000. McAllister commended IRS – Criminal Investigation, Tax Division Trial Attorney John Mulcahy and Assistant U.S. Attorney Leon Patton for their work on the case.
Kansas City Physician Sentenced to Prison for Illegal Reselling and Prescribing of Hormones and SteroidsRead the Press Release
St. Louis, MO – John C. Verstraete, 55 of Kansas City, KS, was sentenced to 12 months imprisonment today in the U.S. District Court in Kansas City, Missouri for health care fraud and illegal prescription of drugs. Dr. Verstraede appeared before Judge Gary A. Fenner who accepted his plea to health care fraud and distribution of controlled substances outside the scope of legitimate medical practice in April.
Verstraete admitted to prescribing Human Growth Hormone (HGH) to a number of patients who, having received reimbursement for the prescription through their health care plans, resold the hormones back to Verstrade for cash. This re-sold HGH provided Verstreade’s medical practice with an inventory of HGH which he then resold to other patients for unauthorized purposes.
Verstraete also admitted to obtaining approximately 25,000 units of illegal, anabolic steroids from foreign countries and dispensing them to patients with no medical need for them. This receipt and prescription practice occurred totally outside the FDA and DEA regulatory oversight process.
Verstraete maintained medical offices at 3215 Main Street in Kansas City.
In response to today’s sentencing, William Callahan, DEA Special Agent in Charge of the St. Louis Division said, “No one, especially a medical professional who takes an oath to practice medicine, is above the law. Those who try to deceive the system and willingly do harm to others by prescribing unnecessary medications will be brought to justice.”
“Health care professionals who illegally distribute prescription drugs and controlled substances may put their patients’ health at risk,” 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 criminals who jeopardize the public’s health.”
This case has been investigated by the Drug Enforcement Administration and the U.S. Food and Drug Administration.
KC Man Sentenced to 15 Years for Investment Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for a nearly $500,000 investment fraud scheme.
Ryan Scott Luscombe, 45, was sentenced by U.S. District Judge Roseann Ketchmark to 15 years in federal prison without parole. The court also ordered Luscombe to pay $483,482 in restitution to his victims.
Luscombe was found guilty at trial on Feb. 12, 2018, of three counts of wire fraud, two counts of mail fraud and one count of money laundering.
Luscombe solicited investments for his business, Five Star Trading Group, Inc., claiming to investors that he would utilize his expertise in stock trading to produce exorbitant returns. Instead, evidence introduced during the trial indicated that nearly all the investor funds, which totaled $483,482, was used by Luscombe on personal expenditures in 2013, 2014 and 2015, including the purchase of a 2010 BMW 750I and a trip to Bermuda.
Several victim investors used money from their retirement accounts to invest with Luscombe. None of Luscombe’s investors have received funds from returns or the return of their original investment.
During the course of the scheme to defraud victims of their investment money, Luscombe represented himself as a wealthy individual and a successful day trader capable of producing tremendous returns on investments. Luscombe lied to investors about his past success in order to obtain their money for his own personal use and financial gain.
Luscombe told investors he was creating a new business to manage over $50 million from three investors in Arizona. Luscombe claimed he would be the primary investment trader, but because the dollar amount to be invested would be too large for one person to handle, he was recruiting additional individuals to assist in his trading endeavor. In exchange for a fee or investment in the business, Luscombe offered to train the additional individuals in his trading strategy. Eventually, Luscombe told investors he would allow a small number of friends and family to take advantage or “piggyback” off the investment strategy of the larger investors.
Luscombe’s stated investment strategy was to trade securities in the stock market based on the identification of trends in the upward or downward direction of the stock price. Luscombe told investors the risk was very low and minimal because he constantly monitored the stock price. Luscombe told investors he had been in the trading business for many years and had previously made millions of dollars.
Luscombe regularly provided positive projected investment return updates to the victims regarding their investments, and claimed investor money would be utilized for trading and generating profits for investors. As a direct result of these conversations, investors entrusted their money to him.
Investors never authorized Luscombe to spend investment money on personal expenditures. Luscombe never told investors their investment money would be spent on his personal expenditures. A salary for Luscombe was not authorized by investors. At the time of investment, Luscombe never informed investors that investment funds would be utilized to pay his salary. An analysis of financial activity revealed Luscombe’s spending of investor funds included the following:
(a) $83,088 in cash and cash equivalents;
(b) $78,542 in retail expenses;
(c) $67,990 in restaurants and entertainment;
(d) $52,925 in vehicle expenses;
(e) $45,940 in travel expenses;
(f) $41,058 in rent and utilities;
(g) $39,673 in investment firm losses, fees, and interest1; and
(h) $21,144 in nutrition, fitness and beauty expenses.Luscombe was not registered with the Financial Industry Regulatory Authority as a broker dealer or as an investment advisor representative. Luscombe and Five Star Trading Group were not registered with the Missouri Secretary of State – Securities Division.
In 2016, Luscombe notified the victims that all of their investor funds had been lost in trading and that Five Star was forced to close down.
This case was prosecuted by Assistant U.S. Attorney Brent Venneman and Special Assistant U.S. Attorney Courtney R. Pratten. It was investigated by the FBI.
KC Man Sentenced to 15 Years for Heroin Conspiracy, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute heroin and for illegally possessing a firearm.
Sidney A. Williams, 65, was sentenced by U.S. Chief District Judge Greg Kays to 15 years and eight months in federal prison without parole. The court also sentenced Williams to supervised release for the rest of his life following incarceration, and ordered him to forfeit to the government $10,000.
On May 1, 2018, Williams pleaded guilty to participating in a conspiracy to distribute heroin and to being a felon in possession of a firearm and ammunition.
Williams admitted that he participated in the drug-trafficking conspiracy from October 2012 to September 2016. In February 2013, detectives of the Kansas City, Mo., Police Department became aware of a large-scale heroin trafficking organization operating in the Kansas City metropolitan area and began working with the Drug Enforcement Administration to investigate. Williams was identified as a distributor of black tar heroin in the metropolitan area.
Williams was arrested on April 30, 2014, for possession of a controlled substance. Officers searched his residence and found a loaded Hi-Point .40-caliber pistol, black tar heroin, crack cocaine, pills, a book of prescriptions and drug paraphernalia. Williams also had a bag of black tar heroin and marijuana in his pockets.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Williams has a prior federal felony conviction for being a felon in possession of a firearm, for which he was sentenced to 15 years in prison. Williams also has prior felony convictions for bank robbery, robbery and assault.
Williams is among five defendants who have been convicted in this case. Four co-defendants also have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Rudolph R. Rhodes, IV, and Trey Alford. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.
Jerry Bowman Arrested for Armed Robbery of Carter County BankRead the Press Release
GREENEVILLE, Tenn. – On October 17, 2018, Jerry Bowman, 58, of Johnson City, Tennessee, was arrested for the robbery of the Carter County Bank on Milligan Highway in Johnson City, Tennessee.
U.S. Magistrate Judge Clifton L. Corker issued a criminal complaint, charging Bowman with the armed robbery of the bank and with brandishing a firearm in furtherance of the robbery. The complaint, on file with the U.S. District Court, alleges that at approximately 1:30 p.m. on October 17, 2018, Bowman entered the Carter County Bank branch, displayed a firearm, and demanded money from the bank tellers. After taking the cash from the tellers, Bowman fled in a blue Ford Fusion. Later that evening, officers stopped a blue Ford Fusion, being driven by another individual, who admitted to residing with Bowman and knowing about the robbery. That stop led to the arrest of Bowman at his residence, where officers recovered money taken in the robbery and the firearm he used.
If convicted, Bowman faces up to 25 years in prison for the robbery. Additionally, he faces a consecutive mandatory minimum sentence of seven years up to life for the firearms charge. Upon his release from prison, he will be subject to up to five years of supervised release by U.S. Probation.
The investigation leading to the arrest was the product of the combined efforts of the Elizabethton Police Department, Carter County Sheriff’s Office, Johnson City Police Department, and FBI. Assistant U.S. Attorneys J. Gregory Bowman will represent the United States in court proceedings.
Members of the public are reminded that a complaint constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Jacksonville Man Sentenced to Five Years in Federal Prison for Firearms OffenseRead the Press Release
Jacksonville, Florida – U.S. District Judge Harvey E. Schlesinger has sentenced Melvin Charles Chapman (63, Jacksonville) to five years in federal prison for possessing firearms as a convicted felon. Chapman had pleaded guilty on April 26, 2018.
According to court documents, on November 16, 2017, the Jacksonville Sheriff’s Office SWAT team executed a search warrant at Chapman’s home in Jacksonville. During the search, nine firearms were found, as well as numerous rounds of ammunition and illegal drugs. At the time, Chapman had multiple felony convictions and therefore was prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Ashley Washington.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Jacksonville Doctor Pleads Guilty to Theft of Government Property for Kickbacks Received for Writing Prescriptions for Compounded MedicationsRead the Press Release
Jacksonville, Florida – U.S. Attorney Maria Chapa Lopez announces that Dr. Felmor Agatep (59, Jacksonville) pleaded guilty today to theft of government property for receiving kickbacks related to a federal health care benefit program. Agatep faces a maximum penalty of 10 years in federal prison.
According to the plea agreement, Agatep, a medical doctor practicing in Jacksonville, wrote prescriptions for expensive compound creams to treat scars and pain, among other things. These creams, which were prescribed largely to TRICARE beneficiaries, costing on average more than $16,000 per cream for a one-month supply. Beginning in late 2014, Agatep was recruited by an individual associated with a marketing group in Jacksonville that recruited largely TRICARE beneficiaries as patients and promoted compounded creams for various pharmacies. Agatep was paid $100 per patient to write prescriptions for compound creams that were filled and billed to TRICARE. Individuals working for the marketing group provided patient names and phone numbers to Agatep. Agatep never saw the patients and knew that writing the prescriptions was not in the ordinary course of medical practice and not medically necessary.
Between December 12, 2014, and January 31, 2015, Agatep wrote 268 prescriptions for compound cream medications for TRICARE beneficiaries, for which TRCIARE was billed approximately $4.4 million.
This case was investigated by the Internal Revenue Service – Criminal Investigation, Defense Criminal Investigative Service, Florida Department of Law Enforcement, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Julie Hackenberry.
Italian Smuggler Caught After Fleeing from Border PatrolRead the Press Release
ALBANY, NEW YORK – Efisio Mascia, age 36, and a citizen of Italy residing in Ibiza, Spain, was arrested Tuesday after a high-speed flight from Border Patrol on New York State Route 37 near Malone, New York. The arrested followed a failed smuggling attempt. No one was injured.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
According to the criminal complaints, Border Patrol Agents interrupted an alien smuggling event in progress along the border near the Fort Covington Port of Entry. An agent attempted to pull over a New Jersey-plated BMW that was observed on a private dirt road along the border at the same time that a woman was observed illegally crossing the border. The BMW initially yielded to the Border Patrol Agent, but sped off at a high rate of speed. Agents lost contact with the vehicle but later came upon it stopped in traffic at the intersection of State Routes 37 and 11. A Border Patrol agent pulled into the intersection with emergency lights on, blocking the BMW, when the BMW then backed up at a high rate of speed, turned 180 degrees in the opposite direction and fled again.
Agents found the driver, Mascia, hiding behind a closed store, and found the smuggled alien, a woman from France, in a store parking lot across the street. The BMW was later found abandoned on Route 30 south of Malone.
The charges in the complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Mascia was charged with transporting an alien unlawfully present in the United States. He appeared today before United States Magistrate Judge Gary L. Favro and was ordered detained pending a detention hearing scheduled for October 25. The smuggled alien, Sofie You, age 38, of Paris, France, is charged with the misdemeanor offense of entry without inspection.
The charges filed against Mascia carry a maximum sentence of 5 years in prison, a fine of up to $250,000, and a post-imprisonment term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Iranian Television Personality Sentenced to Federal Prison for Paying $39,000 in Cash Bribes to Corrupt Immigration OfficersRead the Press Release
LOS ANGELES – A personality on a Persian-language television network who formerly acted as an “immigration consultant” was sentenced today to one year and one day in federal prison for paying cash bribes to corrupt U.S. Citizenship and Immigration Services (USCIS) officers in exchange for the immigration officers approving applications for citizenship.
Vida Heravi, 59, of Beverly Hills, who co-hosts a talk show host on the Tapesh TV Network, was sentenced by United States District Judge Michael W. Fitzgerald.
Heravi pleaded guilty in May to one count of conspiracy to bribe public officials employed by USCIS. When she pleaded guilty, Heravi specifically admitted paying at least $39,000 in cash bribes to corrupt USCIS officers.
During the course of the scheme, corrupt immigration officers approved the applications of ineligible aliens to become naturalized citizens, typically receiving $1,000 per alien. Heravi paid at least $39,000 on behalf of 43 ineligible aliens.
Heravi also admitted in court that she submitted to USCIS at least 20 fraudulent medical waivers that falsely indicated a doctor had diagnosed the aliens as suffering from conditions that exempted them from the English-reading and language requirements in the naturalization process. Heravi used the fraudulent medical waivers to assist the corrupt USCIS officers in evading detection and to mislead other officers.
The USCIS officers accepted cash in exchange for falsely certifying that immigrants had met requirements for citizenship such as “passing” the English competency and civics portions of the naturalization interview and examination administered by USCIS. The corrupt immigration service also accepted the fraudulent medical waivers without questioning the interviewing aliens’ medical disability.
Another woman charged in the bribery conspiracy along with Heravi in a grand jury indictment – Mohdeh Erfani, 50, of Irvine – has pleaded guilty and is pending sentencing.
Previously in this investigation, former USCIS officer Daniel Espejo Amos was sentenced to three years in federal prison for taking bribes from Heravi and other immigration consultants.
The prosecution of Heravi and the others is the result of a joint investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Department of Homeland Security’s Office of the Inspector General, and the Federal Bureau of Investigation.
This matter was prosecuted by Assistant United States Attorney Elisa Fernandez of the Public Corruption and Civil Rights Section.
Inmate Pleads Guilty to Vicious AssaultRead the Press Release
Jackson, Miss. – Curtis Pixley, 39, of Washington, D.C., pled guilty yesterday before Chief United States District Judge Daniel P. Jordan III, to intentionally assaulting another person and to possessing a shank in prison, announced U.S. Attorney Mike Hurst.
On September 7, 2017, Curtis Pixley—a federal prisoner—retrieved a 9-inch shank from his cell in a housing unit at the federal penitentiary in Yazoo City, Mississippi. He walked to a table where prisoners were seated and as a prisoner got up from the table Mr. Pixley began stabbing him repeatedly. The victim survived his injuries.
Pixley will be sentenced in Jackson by Judge Jordan on January 25, 2018, and faces a maximum penalty of 15 years in prison, followed by up to 6 years of supervised release, and a $500,000 fine.
This case was investigated by the Federal Bureau of Prisons.
Illegal alien living in Abbeville sentenced to 90 months in prison for possessing child pornographyRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that an illegal alien from Mexico was sentenced Wednesday to seven years and six months in prison for using his phone and an online account to acquire and possess child pornography.
Paul Armenta-Bojorquez, 34, of Sinaloa, Mexico, but who resided in Abbeville, Louisiana, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession of child pornography. According to the May 16, 2018 guilty plea, law enforcement agents interviewed Armenta-Bojorquez on November 13, 2017 regarding possession of child pornography. He told agents that he received child pornography through his phone and then transferred it onto an online account. Law enforcement agents reviewed the material found on the online account, and it contained child pornography. Some of the material was of children who were younger than 12.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security and the Louisiana Attorney General’s Louisiana Bureau of Investigation Cyber Crime Unit conducted the investigation. Assistant U.S. Attorney Dominic Rossetti prosecuted the case.
Henryetta Woman Pleads Guilty to Theft by Bank EmployeeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Stacey Becker Lawson, age 41, of Henryetta, Oklahoma, entered a guilty plea to Theft, Embezzlement Or Misapplication By Bank Employee, in violation of Title 18, United States Code, Section 656, punishable by not more than 30 years imprisonment, up to a $1,000,000.00 fine, or both.
The Indictment alleged that from in or about 2015, the exact date unknown to the Grand Jury, until on or about June 13, 2018, in the Eastern District of Oklahoma, the defendant, being an employee of, and connected in a capacity with, American Exchange Bank of Henryetta, Oklahoma, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud the said American Exchange Bank of Henryetta, Oklahoma, willfully misapplied, embezzled, abstracted, and purloined more than $1,000.00 of the moneys, funds, assets and securities entrusted to the custody and care of American Exchange Bank of Henryetta, Oklahoma, in that the defendant withdrew cash and transferred funds from the bank and misapplied, embezzled, abstracted and purloined the funds.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Clay Compton represented the United States.
Greenville Woman Guilty of Fraud Involving ImmigrationRead the Press Release
Columbia, South Carolina –------- United States Attorney Sherri A. Lydon announced today that on October 17, 2018, Veronica Perdomo, age 43, of Greenville, South Carolina, entered a plea of guilty as charged before United States District Judge Timothy M. Cain. Perdomo pled guilty to two counts of Wire Fraud, each such count carrying a sentence of up to 20 years in prison, four counts of Impersonating an Officer or Employee of the United States, each such count carrying a sentence of up to 3 years in prison and twelve counts of Fraudulently Affixing the Seal of an Agency of the United States to a Document, each such count carrying a sentence of up to 5 years in prison. Sentencing will occur after the preparation of a presentence report by the United States Probation Office.
At the guilty plea hearing, Assistant United States Attorney David C. Stephens advised Judge Cain of the following facts: Perdomo devised a scheme whereby she, at various times, pretended to be either an employee, officer or attorney working with or for the Department of Homeland Security, U.S. Citizenship and Immigration Services (DHS/CIS). Perdomo would seek out aliens who were either illegally in the United States or were here legally but having problems with their immigration status. For a fee, Perdomo would “assist” these people in dealing with their immigration problems. In truth and fact she did absolutely nothing to assist them with their problems. In order to facilitate the scheme and artifice, Perdomo would prepare documents that she claimed were being sent to DHS/CIS, which actually were simply being piled up in a storage shed behind her home. Perdomo would then create bogus documents bearing the seal of DHS/CIS which she claimed were being sent from DHS/CIS and provide same to her victims to purportedly show that their situations were being addressed. USA Lydon advised that further details of the case could be found in the Indictment, a copy of which is attached.
USA Lydon further advised that a co-defendant in the case, Latoya Sanders, age 30, of Greenville, South Carolina, had earlier entered a plea of guilty as outlined in a press release which is also attached hereto. At the time of that plea no facts concerning the case were released due to Perdomo’s case being pending. USA Lydon stated that Sanders played a lesser role in the offense than did Perdomo and was basically used to collect money from the victims and assist Perdomo in her charade of being a part of the DHS/CIS.
USA Lydon commended the efforts of the real agents from DHS/CIS who she said worked many hours conducting a superb investigation. Additionally, Lydon had high praise for the officers from the Greenville City Police Department who originated the case and were outstanding partners as the investigation moved in to the federal arena.
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sanders_latoya_-_plea.pdf indictment.pdfGrand Jury Returns Superseding Indictment in Shamo Case; Adds Distribution of Fentanyl Count Resulting in DeathRead the Press Release
SALT LAKE CITY – A federal grand jury in Salt Lake City returned a second superseding indictment Thursday morning in the Aaron Michael Shamo case. The 13-count indictment alleges a count of aiding and abetting the distribution of a controlled substance (fentanyl) resulting in death.
The indictment alleges that Shamo intentionally and knowingly distributed a substance containing Fentanyl, the use of which resulted in the June 13, 2016, death of a person identified as R.K. in the indictment.
The superseding indictment charges one count of Continuing Criminal Enterprise; three counts of aiding and abetting the importation of a controlled substance; one count of possession of a controlled substance with intent to distribute, one count of manufacture of a controlled substance and two counts of knowing and intentional adulteration of drugs while held for sale. It also includes one count of aiding and abetting the use of the U.S. mail in furtherance of a drug trafficking offense, one count of conspiracy to commit money laundering, one count of money laundering promotion and concealment, and one count of engaging in monetary transactions in property derived from specified unlawful activities – in addition to the distribution resulting in death count.
The indictment alleges Shamo directed an international drug trafficking organization that imported Fentanyl and Alprazolam from China and manufactured controlled substances, namely fake oxycodone pills made with Fentanyl and counterfeit Xanax tablets. Documents filed by federal prosecutors as a part of the case allege Shamo and his co-conspirators purchased pill tableting machines – sometimes called pill presses – to mark pills so the markings would match those of legitimate pharmaceutical drugs. The organization distributed these controlled substances to other individuals for distribution throughout the United States and elsewhere using their storefront, PHARMA-MASTER, on the Dark Net marketplace AlphaBay and through the U.S. mail, according to the indictment and case documents. According to a complaint filed in the case, when law enforcement officers executed a search warrant at Shamo’s house in November 2016, they found approximately 70,000 pills that had the appearance of Oxycodone and more than 25,000 pills that appeared to be Alprazolam. The drug trafficking organization distributed more than 800,000 pills.
Counts 8 and 9 of the indictment allege Shamo manufactured round blue tablets with markings on them to look like Oxycodone tablets. He offered the tablets for sale on the internet as Oxycodone 30 mg tablets. Despite these representations, the defendant did not use Oxycodone in the manufacturing process. He substituted Fentanyl, a much more potent synthetic opioid, the indictment alleges.
The organization began as a collaboration between Shamo and Drew Wilson Crandall, but grew to include others.
Crandall, age 32, most recently of Brisbane, Australia, pleaded guilty in federal court Wednesday to conspiracy to distribute Fentanyl, conspiracy to distribute Alprazolam, and conspiracy to commit money laundering. As a part of a statement in advance of the plea agreement filed in court, Crandall admitted that he and his co-defendant, Shamo, imported and distributed controlled substances in Utah and elsewhere. He admitted they sold controlled substances on dark web marketplaces. As he made plans to leave the country, he trained co-conspirators to assume the roles he had held in the organization. He admitted he stayed in contact with Shamo after leaving Utah and began to provide online customer support for Shamo’s vendor account on AlphaBay. This work continued until Shamo’s arrest in November 2016.
Crandall admitted that the co-conspirators each had a role to play and they relied on each other to meet their common objective: to earn money by selling drugs.
According to the plea agreement, Shamo normally paid Crandall by bitcoin while he was out of the country. However, at his request in November 2016, Shamo deposited drug proceeds – specifically U.S. currency – into Crandall’s bank account as payment for his ongoing services to PHARMA-MASTER.
Federal prosecutors have agreed to recommend Crandall be sentenced at the low end of the sentencing guideline range determined by the Court. He faces up to life in prison with a mandatory minimum of 10 years in prison for the conspiracy to distribute fentanyl conviction, up to five years for the for conspiracy to distribute alprazolam, and a maximum of 20 years for conspiracy to commit money laundering.
Other defendants charged in earlier indictments have also reached plea agreements in the case. They include Alexandrya Marie Tonge, age 26, and Katherine Lauren Anne Bustin, age 28, both of South Jordan, Utah; and Mario Anthony Noble, age 29, and Sean Michael Gygi, age 28, both of Midvale, Utah. Sentencings for these defendants will be scheduled at a later date.
Shamo faces a mandatory life sentence if convicted of the Continuing Criminal Enterprise count in the indictment. Several other counts, including aiding and abetting the importation of fentanyl, possession of fentanyl with intent to distribute and aiding and abetting the distribution of a controlled substance resulting in death carry potential life sentences. Other counts carry potential sentences of five years to 40 years.
The indictment includes a notice that federal prosecutors intend to seek criminal forfeiture of property and proceeds derived from the alleged conduct or used to commit or facilitate the commission of the offenses. Included in the notice is millions of dollars in U.S. currency, an industrial large pill press and associated dyes, four 100-ounce silver bars, and cash as a substitute for two vehicles sold as a part of the case – among other things.
Indictments are not findings of guilt. An individual charged in an indictment is presumed innocent unless or until proven guilty in court.
A three-week trial is set to start on Jan. 22, 2019, before U.S. District Judge Dale A. Kimball.
Special Assistant U.S. Attorneys from the Utah Attorney General’s Office are joining an Assistant United States Attorney in the U.S. Attorney’s Office in Salt Lake City in prosecuting the case. U.S. Postal Inspectors and special agents of U.S. Immigrations and Customs Enforcement Homeland Security Investigations, the FDA, DEA Metro Narcotics Task Force in Salt Lake City, and IRS-Criminal Investigation are investigating the case.