Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
28 November 2018
Former Vice President of Insys Pharmaceuticals Pleads Guilty to Racketeering SchemeRead the Press Release
BOSTON – The former Vice President of Sales of Insys Therapeutics pleaded guilty today in federal court in Boston to his role in a nationwide conspiracy to bribe medical practitioners to unnecessarily prescribe a fentanyl-based pain medication and defraud healthcare insurers.
Alec Burlakoff, 44, of West Palm Beach, Fla., pleaded guilty before U.S. District Court Judge Allison D. Burroughs to one count of racketeering conspiracy. Burlakoff and his co-conspirators – all former managers and executives at Insys – were initially indicted in December 2016; an October 2017, superseding indictment also charged John Kapoor, the founder and former executive chairman of Insys. Today, Burlakoff pleaded guilty to the second superseding indictment.
Burlakoff, and, allegedly, other Insys employees, used various methods to bribe medical practitioners in various states, many of whom operated pain clinics, to induce them to prescribe Subsys. Subsys is a powerful, fentanyl-based pain medication intended to treat cancer patients suffering intense breakthrough pain.
One method employed by Burlakoff and his alleged co-conspirators was the Insys Speaker Program (ISP), which was used as a vehicle to bribe doctors and other clinicians to prescribe Subsys to their patients. Insys sales representatives targeted and promised medical professionals the opportunity to be paid Insys speakers if they wrote prescriptions for Subsys. The more prescriptions written for Subsys – and the higher the dose – the more speaking opportunities were awarded and more fee paid to the clinicians. However, the speaking opportunities were merely an excuse for the clinician and friends to have a meal and drinks paid for by Insys, and for the speaker to be paid. As a result, insurers were defrauded by paying reimbursements for Subsys, a more expensive drug than its nearest competitor, and often prescribed when medically unnecessary and inappropriate.
Other methods were also used to bribe and induce medical professionals to prescribe Subsys. For example, employees of the practitioner’s office were moved onto the Insys payroll. Additionally, relatives and girlfriends of the medical professionals who were high volume writers were also hired.
As a result of the conspiracy, many patients were inappropriately prescribed and overprescribed Subsys, which is highly addictive and dangerous.
The charge of RICO conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000, or twice the amount of pecuniary gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services; Mark A. McCormack, Special Agent in Charge of the FDA Office of Criminal Investigations’ Metro Washington Field Office; Carol S. Hamilton, Acting Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service (DCIS), Northeast Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office; Sean Smith, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Thomas South, Deputy Assistant Inspector General for Investigations, Office of Inspector General of the U.S. Office of Personnel Management made the announcement today. Assistant U.S. Attorneys Nathaniel K. Yeager, Fred M. Wyshak, Jr., and David G. Lazarus, of Lelling’s Office, are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Richwood correctional officer pleads guilty to covering up physical assault of inmatesRead the Press Release
MONROE, La. – The Justice Department and U.S. Attorney David C. Joseph announced today that former Richwood Correctional Center officer Demario Shaffer pleaded guilty Monday in federal court for his role in a conspiracy to cover up the physical assault of five inmates by himself and other correctional officers in violation of the Constitutional prohibition against cruel and unusual punishment.
Shaffer, 33, of Delhi, Louisiana, pleaded guilty to conspiring to falsify documents with the intent to obstruct and influence a matter within federal jurisdiction. Assistant Attorney General Eric Dreiband for the Civil Rights Division and David C. Joseph, U.S. Attorney for the Western District of Louisiana, made the announcement.
“A correctional officer who uses excessive force against an inmate and then falsifies official reports violates the Constitution and its provision to protect all incarcerated offenders from cruel and unusual punishment,” said Assistant Attorney General Eric Dreiband. “The Justice Department will continue to aggressively prosecute such misconduct to ensure the integrity of our civil rights laws.”
“Correctional officers are not allowed to abuse prisoners,” said U.S. Attorney David C. Joseph. “They must follow the law and not use their position of authority to assault those under their supervision.”
According to his guilty plea, Shaffer worked as a Sergeant at the Richwood Correctional Center in Monroe, where on October 30, 2016, he and other officers inflicted cruel and unusual punishment upon five inmates by spraying a chemical agent in their face and eyes while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Shaffer admitted that he conspired with the other officers to hide their conduct by submitting a false story in their official reports concerning the incident.
The count of conviction carries a maximum penalty of five years in prison and a criminal fine of up to $250,000. Shaffer is scheduled to be sentenced on May 1, 2019 by U.S. District Judge Terry A. Doughty of the Western District of Louisiana, who accepted the plea.
This case is being prosecuted by Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office, Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, U.S. Department of Justice. The case was investigated by the Monroe Division of the FBI.
Former Reservist Sentenced for Stealing Weapons, Prison Escape & Attempted Bank RobberyRead the Press Release
BOSTON – A former Army Reservist was sentenced today in federal court in Worcester for stealing six machine guns and 10 handguns from a U.S. Army Reserve facility, escaping from federal prison, and attempting to rob two banks.
James W. Morales, 37, of Cambridge, was sentenced by U.S. District Court Judge Timothy S. Hillman to 138 months in prison and three years of supervised release. In November 2017, Morales pleaded guilty to one count of being a felon in possession of a firearm; one count of possession of a machine gun; one count of possession of stolen firearms; one count of theft of government property; one count of conspiracy to possess, store, conceal, and sell stolen weapons; one count of escape; and two counts of attempted bank robbery.
On Nov. 14, 2015, Morales broke into a weapons vault at the Lincoln Stoddard United States Army Reserve Center in Worcester and stole six M-4 Carbines and 10 M-11 handguns. Morales was familiar with the layout of the facility, having been stationed there prior to his discharge from the Army Reserve.
Morales gained access to the weapons by breaking a kitchen window located near the room that contained the vault, climbing to the top of the vault, and cutting a hole through its ceiling. The sharp edges of the ceiling caused Morales to cut himself, leaving behind DNA, which was matched to Morales three days after the robbery.
Upon identifying Morales through the DNA database, law enforcement learned that Morales was on bail for child rape charges pending in Middlesex Superior Court. One of the conditions of his release required him to wear an electronic monitoring bracelet, which he wore during the robbery. In addition, surveillance video depicting a dark colored BMW X1 parked at a building adjacent to the U.S. Army facility was recovered. In the video, a man can be seen going to and from the car with duffle bags. Soon after Morales was identified, law enforcement learned that Morales was renting a BMW X1 at the time of the robbery.
After the robbery, Morales rented another vehicle, and GPS data from the vehicle showed that Morales had travelled to New York City, where he was located and arrested on Nov. 18, 2015, in Long Island. Inside his vehicle, four M-4 Carbines and two M-11 handguns were recovered with serial numbers matching those stolen from the Armory.
In a statement admitting his role in the robbery of the Army Reserve facility, Morales explained that he sold five of the handguns to two individuals in Dorchester with the help of Tyrone James and Ashley Bigsbee, who facilitated the transaction. Morales claimed to have given James and Bigsbee several hundred dollars, one of the M-4 Carbines and one of the M-11 handguns as payment for assisting with the sales. In April 2017, James was sentenced to 57 months in prison. In March 2017, Bisgbee was sentenced to 21 months in prison.
Following his arrest, Morales was detained at the Donald W. Wyatt Detention Facility in Central Falls, R.I. On Dec. 31, 2016, Morales escaped from the prison by climbing a basketball hoop, jumping onto a roof, and going through a barbed wire fence.
On Jan. 5, 2017, Morales was captured on surveillance video entering a branch of Bank of America in Cambridge and attempting to rob the bank by passing the teller a note that read, “I WANT ALL OF THE LARGE DENOMINATIONS W/BAND’S FROM THE 2ND (BOTTOM) TILL NOW BE CALM – BE COOL – NO DYE PACKS.” The teller was able to flee to the back of the bank behind a locked door, and Morales exited the bank without any money.
Later that same day, Morales, again captured on surveillance video, entered a branch of Citizen’s Bank in Somerville and attempted to rob the bank by passing the teller a note that read, “I WANT THE MONEY IN THE TILL NOW!! 100’s 50’s 20’s Be Calm, Be Cool, be Quick.” The teller stated, “I can’t,” and Morales wished the teller a nice day and exited the bank.
After a foot pursuit in Somerville, Morales was apprehended by law enforcement; he admitted to attempting to rob both banks.
United States Attorney Andrew E. Lelling; United States Attorney Stephen G. Dambruch for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; United States Marshal John Gibbons for the District of Massachusetts; United States Marshal Jaime A. Hainsworth for the District of Rhode Island; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Cambridge Police Commissioner Branville G. Bard; and Somerville Police Chief David Fallon made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Criminal Division prosecuted the case.
###
Former Physician Pleads Guilty to Operating an Oxy Pill MillRead the Press Release
ALEXANDRIA, Va. – A former physician pleaded guilty today to operating a pill mill that illegally distributed over 600,000 oxycodone pills out of a pain management clinic in Woodbridge.
According to court documents, Shriharsh Laxman Pole, 65, was a physician who voluntarily surrendered his medical license in 2009, and again in 2013. In both instances, Pole admitted to creating a substantial risk to public health by engaging in wrongful prescribing practices for opiates, including oxycodone, oxymorphone, hydrocodone, and hydromorphone.
Upon surrendering his license in 2013, Pole founded Excel Medical Clinic (EMC). EMC operated out of the same office, had the same employees, and the same patients, as Pole’s former practice. Most of EMC’s patients were treated for pain management issues. Pole enlisted the aid of nurse-practitioner and co-conspirator, Janelle Hibson, 63, of Fredericksburg, who pleaded guilty to the same charges on September 6. Hibson pre-signed prescriptions that Pole later filled out and distributed. Patients often received these drugs without undergoing any physical or diagnostic examination to determine whether the drugs were necessary for legitimate medical purposes. Pole admitted that between EMC’s founding and 2015, he caused the distribution of more than 600,000 pills containing oxycodone.
Pole pleaded guilty to conspiracy to distribute Schedule II and III controlled substances, including oxycodone, oxymorphone, morphine sulfate, and hydrocodone, outside the scope of professional practice and not for a legitimate medical purpose. He faces a maximum penalty of 20 years in prison when sentenced on March 15, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorneys Michael P. Ben’Ary and David Peters are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-397.
Former New Jersey Lawyer Admits Role in Money Laundering SchemeRead the Press Release
CAMDEN, N.J. – A former New Jersey lawyer today admitted his role in a money laundering scheme, U.S. Attorney Craig Carpenito announced.
Michael W. Kwasnik, 49, of North Miami Beach, Florida, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to Count 12 of a superseding indictment, charging him with money laundering.
According to documents filed in this case and statements made in court:
Kwasnik was previously associated with a law firm, Kwasnik, Rodio, Kanowitz and Buckley P.C. – and its successor firm, Kwasnik, Kanowitz and Associates P.C. – with offices in Cherry Hill, New Jersey, and Philadelphia. His father, and co-defendant, William M. Kwasnik, of Marlton, New Jersey, owned and operated an insurance company, Abby Grant, with offices in Cherry Hill and Lakewood, New Jersey.
In April 2011, Michael Kwasnik induced a client to establish an irrevocable family trust to settle his mother’s estate, with promises that any money deposited in the trust would not be invested, but rather held for the client’s benefit. With the client’s consent, Michael Kwasnik established the trust and named himself as the trustee. Based on Michael Kwasnik’s promises, the client gave Michael Kwasnik $125,774, which the client received after his mother’s death, to deposit in the trust account. Michael Kwasnik deposited the money into the trust account and the next day, transferred $125,000 to Abby Grant’s bank account, and then to the Kwasnik, Rodio, Kanowitz and Buckley P.C. bank account, without the client’s knowledge or permission. Michael Kwasnik admitted that he did so to conceal and disguise the source of the money and that it was the proceeds of a mail fraud or wire fraud scheme.
The money laundering offense to which Michael Kwasnik pleaded guilty carries a maximum penalty of 20 years in prison and a $500,000 fine, or twice the gross gain or loss from the offense. Under terms of the plea agreement, he must also forfeit $125,000 and pay restitution.
The charges against William Kwasnik remain pending, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Michael T. Harpster, Philadelphia Division, and special agents of IRS Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, Newark Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Deborah Prisinzano Mikkelsen and Jason Richardson of the U.S. Attorney’s Office in Camden.
Defense counsel: Michael Kwasnik: Richard Klineburger Esq., Haddonfield, New Jersey
William Kwasnik: Daniella Gordon Esq., Moorestown, New JerseyFormer Insider Convicted of Defrauding Baton Rouge CompanyRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced KATHERINE T. CANCIENNE, age 41, of Baton Rouge, Louisiana, to 28 months in federal prison following her conviction for wire fraud. CANCIENNE was also ordered to pay $387,025.75 in restitution to Engineers & Constructors International, Inc. (“ECI”).
CANCIENNE, who formerly handled accounting matters at ECI, admitted in connection with her guilty plea, to executing a fraud scheme by, among other things, establishing a shell corporation and bank account under the name Cappo, LLC, which had a similar name to an actual ECI vendor. The defendant admitted further to causing ECI to issue checks and make electronic wire payments to her shell corporation by creating and submitting false and fraudulent documents to ECI. As a result of this scheme, the defendant obtained nearly $400,000.
U.S. Attorney Fremin stated, “My office will continue to aggressively pursue those who use their positions of trust and skill to steal from their employers. Such betrayal often risks the financial livelihoods of their co-workers and may threaten the financial integrity of their employers. I am proud of our prosecutors and the special agents from the United States Secret Service who worked on this very important matter.”
Tara McLeese, Resident Agent in Charge of the Secret Service Office in Baton Rouge stated, “Since 1865, the United States Secret Service (USSS) has been tasked with protection of the nation's financial service infrastructure. Through aggressive investigation and collaboration with our partners in the United States Attorney’s Office, Agents in the Baton Rouge Resident Office were able to bring this case to a successful ending. The Secret Service remains committed to addressing the financial crimes that victimize our country’s citizens and financial institutions.”
This matter is being investigated by the Baton Rouge Office of the U.S. Secret Service, and is being prosecuted by Assistant United States Attorney Pete Smyczek.
Former Department Administrator Pleads Guilty to Defrauding MARTA Out of More Than $520,000Read the Press Release
ATLANTA – Jhonnita L. Williams, a former department administrator at the Metropolitan Atlanta Rapid Transit Authority (MARTA), pleaded guilty to participating in a false-invoice scheme that resulted in MARTA paying more than $520,000 for maintenance projects where no worked was actually performed.
“MARTA trusted Williams to use and protect taxpayer dollars effectively and responsibly,” said U.S. Attorney Byung J. “BJay” Pak. “Her participation in a half of million dollar theft of MARTA funds demonstrates that she sold the public’s trust for self-enrichment.”
“Williams circumvented proper government procedures and dipped into taxpayers’ money to subsidize her own personal greed,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Public corruption is one of the FBI’s top priorities, and we are committed to holding accountable those who choose to abuse their positions of trust.”
“MARTA has zero-tolerance for any employee who betrays the trust placed in us by our customers,” said MARTA Police Chief Wanda Y. Dunham. “The guilty plea by Ms. Williams concludes a coordinated investigation with our federal law enforcement partners, and we are satisfied with the results. We hope this guilty verdict serves as a deterrent for others who would attempt to defraud the taxpayers.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: MARTA is the principal public transportation operator in the Atlanta area, providing fixed rail and bus service to more than 500,000 passengers per weekday. Formed by Metropolitan Atlanta Rapid Transit Authority Act of 1965, MARTA is a multi-county local governmental agency with a 2016 annual budget of more than $880 million.
Williams worked for MARTA from 1999 to 2017. From 2010 to 2017, Williams worked as an assistant and department administrator for Joseph J. Erves. During most of the conspiracy, Erves served as MARTA’s senior director of operations and oversaw the maintenance of all of its buses and rail cars.
From approximately June 2010 to December 2016, Williams and Erves had more than 40 fake invoices prepared on behalf of three vendors for MARTA maintenance projects for which no work was performed. Williams and Erves used the false invoices as bases to authorize payments to the three vendors – including fake invoices submitted by a business owned by Ferrell Williams (who was romantically involved with Jhonnita Williams). After being paid, the all three of the vendors funneled most of the money received from MARTA back to Erves and Williams. In total, MARTA paid the three vendors more than $520,000 for maintenance projects where no worked was actually performed.
Williams used the money to pay for various personal expenses, including the financing and purchase of an approximately 3,000 square foot single-family home with four bedrooms and two and a half bathrooms.
On July 24, 2018, a grand jury returned a seven-count indictment against Williams, 47, of Atlanta, Georgia. Today, Williams pleaded guilty to one count of conspiratorial federal program theft.
On September 20, 2017, Joseph J. Erves, 54, of Lithonia, Georgia pleaded guilty to federal program theft. On January 16, 2018, Erves was sentenced to two years and nine months in federal prison, and was ordered to pay $522,825.45 in restitution.
On March 29, 2018, Ferrell Williams, 63, of Cincinnati, Ohio, pleaded guilty to conspiring to commit federal program theft. On August 1, 2018, Ferrell Williams was sentenced to eight months in federal prison, and was ordered to pay $41,539.1 in restitution.
This case is being investigated by the Federal Bureau of Investigation and the MARTA Police Department.
Assistant U.S. Attorneys Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Alison Prout are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Correctional Officer Pleads Guilty to Conspiracy to Cover up Physical Assault of InmatesRead the Press Release
The Justice Department today announced that former Richwood Correctional Center officer Demario Shaffer pleaded guilty on Monday in federal court for his role in a conspiracy to cover up the physical assault of five inmates by himself and other correctional officers in violation of the Constitutional prohibition against cruel and unusual punishment. Shaffer, 33, of Delhi, Louisiana, pleaded guilty to conspiring to falsify documents with the intent to obstruct and influence a matter within federal jurisdiction. Assistant Attorney General Eric Dreiband for the Civil Rights Division and U.S. Attorney for the Western District of Louisiana David C. Joseph made the announcement.
“A correctional officer who uses excessive force against an inmate and then falsifies official reports violates the Constitution and its provision to protect all incarcerated offenders from cruel and unusual punishment,” said Assistant Attorney General Eric Dreiband. "The Justice Department will continue to prosecute aggressively any similarly disgraceful and unlawful misconduct to ensure the integrity of our civil rights laws."
“Correctional officers are not allowed to abuse prisoners,” said United States Attorney David C. Joseph. “They must follow the law and not use their position of authority to assault those under their supervision.”
According to his guilty plea, Shaffer worked as a Sergeant at the Richwood Correctional Center in Monroe, Louisiana, where on Oct. 30, 2016, he and other officers inflicted cruel and unusual punishment upon five inmates by spraying a chemical agent in their face and eyes while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Shaffer admitted that he conspired with the other officers to hide their conduct by submitting a false story in their official reports concerning the incident.
The count of conviction carries a maximum penalty of five years in prison and a criminal fine of up to $250,000. Shaffer is scheduled to be sentenced on May 1, 2019, by U.S. District Judge Terry A. Doughty of the Western District of Louisiana, who accepted the plea.
This case is being prosecuted by Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office of the Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, U.S. Department of Justice. The case was investigated by the Monroe Division of the FBI.
Former Charter Airline Executive Sentenced to Nearly Eight Years in Prison for Orchestrating Multimillion Dollar Scheme to Steal Passenger Money from EscrowRead the Press Release
The former vice president of a now-bankrupt public air charter operator was sentenced to 94 months in prison today for her role in a scheme to steal millions of dollars in passenger money for future travel from an escrow account, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Regional Special Agent in Charge Douglas Shoemaker of the U.S. Department of Transportation Office of the Inspector General’s (DOT-OIG).
Kay Ellison, 58, of Edenton, North Carolina, was sentenced by U.S. District Judge Susan D. Wigenton of the District of New Jersey, who presided over the trial. Judge Wigenton also ordered the defendant to pay $19.6 million in restitution. Ellison and her co-defendant, Judy Tull, 73, also of Edenton, were both convicted on March 28, after a seven-day trial, of one count of conspiracy to commit wire fraud affecting financial institutions and to commit bank fraud, four counts of wire fraud affecting financial institutions and three counts of bank fraud. Ellison is the former vice president and managing partner of Myrtle Beach Direct Air and Tours (Direct Air), which was headquartered in Myrtle Beach, South Carolina, with operations in Daniels, West Virginia, and Tull is its former CEO. Tull is scheduled to be sentenced at a later date.
“Kay Ellison stole tens of millions of dollars of passenger money in a brazen scheme that put a veneer of success on a failing company, and left others holding the bag—until today,” said Assistant Attorney General Benczkowski. “Her sentence sends a powerful deterrent message—especially to corporate executives—and demonstrates the commitment of the Criminal Division and its law enforcement partners to uncovering and vigorously prosecuting corporate fraud wherever it is found.”
“The sentencing in this investigation demonstrates that the Department of Transportation Office of Inspector General is committed to stopping charter flight operators who intentionally mislead and defraud the traveling public for personal gain,” said DOT-OIG Regional Special Agent in Charge Shoemaker. “Together with the Department of Justice, we will continue to vigorously pursue and prosecute fraud that erodes consumer confidence in the integrity of transportation-related goods and services.”
According to evidence presented at trial, from October 2007 through March 2012, Ellison and Tull engaged in a scheme to steal passengers’ money for future travel from an escrow account by artificially inflating the amount of money that the defendants claimed they were entitled to receive, and by sending this falsified amount in a letter to the escrow bank telling the escrow bank to release the money. The evidence further established that to cover up their fraud, the defendants falsified profit and loss statements to make the company look like it was making money rather than losing money, and sent these falsified documents to credit card companies and banks to trick them into continuing to do business with the company.
Testimony at trial established that two financial institutions incurred losses of nearly $30 million for having to refund thousands of passengers their money that should have been held for them in escrow, but was actually stolen by the defendants as part of their fraud.
Robert Keilman, 73, of Marlboro, New Jersey, Direct Air’s former chief financial officer, pleaded guilty to charges stemming from his role in this scheme and will be sentenced separately.
This case was investigated by DOT-OIG. Trial Attorneys Cory E. Jacobs and Michael T. O’Neill of the Criminal Division’s Fraud Section are prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against complex white collar crime around the country.
Former Business Owner from Marion Sentenced to over Two Years in Prison for Bank FraudRead the Press Release
A man who previously operated a freight business and created fake documents for his bank was sentenced today to more than two years in prison.
David Giannetto, age 63, from Marion, Iowa, received the prison term after a May 23, 2018, guilty plea to one count of bank fraud.
In a plea agreement, Giannetto admitted that he produced numerous fraudulent invoices that he provided to his bank in order to continue to receive financing to operate his business. Giannetto created fake invoices purporting to show he had performed work for various customers and then sold those invoices to his bank to secure his financing. Information at sentencing showed that Giannetto submitted more than 600 fraudulent invoices in a two-year period. As a result, the bank loaned him more than $850,000 that he was unable to repay before closing his business and declaring bankruptcy.
Giannetto was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Giannetto was sentenced to 27 months’ imprisonment. He was ordered to make $872,065 in restitution his bank. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Giannetto was released on the bond previously set and is to surrender to the United States Marshal on December 31, 2018.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Bureau of Investigation. Court file information at https://ecf.iand.uscourts.gov/. The case file number is 18-cr-20.
Follow us on Twitter @USAO_NDIA.
Former Allentown Assistant City Solicitor Sentenced in Former Mayor Edwin Pawlowski’s Pay-to-Play SchemeRead the Press Release
PHILADELPHIA – Deputy United States Attorney Louis D. Lappen announced that Dale Wiles, former Allentown Assistant City Solicitor, was sentenced today for his role in a pay-to-play bidding scheme involving former Allentown Mayor Edwin Pawlowski. United States District Judge Juan Sanchez sentenced Wiles to one day in jail to be served on Friday, December 7, 2018. He was also sentenced to serve three years of supervised release, of which the first three months will be served on home confinement with electronic monitoring; perform 100 hours of community service; and pay a $3,000 fine and a $100 special assessment.
Wiles was charged by information in November 2015 with conspiracy to commit mail and wire fraud for his involvement with Pawlowski. Wiles played a role in steering the city’s delinquent real estate tax collection contract to Pawlowski’s preferred vendor, Northeast Revenue, in contravention of the standard process employed by the city to award contracts. In return for the contract, Northeast made political contributions to Pawlowski’s failed campaigns for Pennsylvania Governor and United States Senate. Wiles’s conduct included falsifying evaluation committee score sheets to make it appear as though the committee had originally selected Northeast when it had not, withholding certain city records subject to a grand jury subpoena, and lying to the FBI.
In addition to Pawlowski, who was convicted at trial and sentenced to 15 years’ imprisonment, Wiles’s co-conspirators included the following individuals: Michael Fleck, a campaign consultant; Francis Dougherty, the Allentown Managing Director; and Garret Strathearn, Allentown Finance Director. These defendants all have pleaded guilty and similarly admitted to steering contracts to Pawlowski’s preferred vendors.
“In playing along with Pawlowski’s crooked business practices, Wiles ensured everyone got what they wanted: Northeast Revenue received its coveted tax collection contract and Pawlowski received campaign contributions. But Wiles was an attorney—he should have known better than to engage in the corrupt pay-to-play politics that permeated Allentown City Hall,” said Deputy U.S. Attorney Lappen. “The citizens of Allentown deserve better from their public servants and our Office remains committed to holding corrupt politicians and their cronies accountable.”
“Ed Pawlowski couldn’t pull off his pay-to-play scheme by himself,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Dale Wiles admitted to violating the city’s established contracting process in order to benefit his boss. When government officials break the law, it really damages the public trust. As such, public corruption remains the FBI’s highest criminal investigative priority.”
“Today's sentence reinforces our unwavering commitment to identify and prosecute those who participate in similar schemes,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “We will continue our collaborative effort to promote honest and ethical government at all levels.”
This case was investigated by the FBI and IRS Criminal Investigations. The case was prosecuted by Assistant United States Attorneys Anthony J. Wzorek and Michelle L. Morgan.
Florida Woman Sentenced to Five Years in Prison for Role in Conspiracy to Distribute OxycodoneRead the Press Release
TRENTON, N.J. – A Florida woman was sentenced today to 60 months in prison for her role in an oxycodone distribution conspiracy in Flemington, New Jersey, U.S. Attorney Craig Carpenito announced.
Alicia Balaban, 35, of Wellington, Florida, previously pleaded guilty before U.S. District Judge Freda Wolfson to an information charging her with one count of conspiracy to distribute and possess with intent to distribute oxycodone. Judge Wolfson imposed the sentence today in Trenton federal court.
According to the documents filed in the case and statements made in Court:
From April 2016 through December 2017, Balaban, her mother, Michele Call, 63, of Flemington, New Jersey, and Nelida Rios, 55, also of Flemington, worked together to secure prescriptions for oxycodone, fill them at pharmacies in Flemington, and then distribute the pills to Marie DeJulia, 42, of Lodi, New Jersey, from Call’s and Rios’ residences for resale. The conspirators distributed thousands of 30 mg oxycodone pills.
In addition to the prison term, Judge Wolfson sentenced Balaban to three years of supervised release, and fined her $1,500. She ordered forfeiture of $93,560.
All of the defendants have pleaded guilty. On Nov. 20, 2018, Call was sentenced to 54 months in prison and Rios was sentenced to 48 months in prison. DeJulia is awaiting sentencing.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit in Newark.
Fifteen People Charged in Monmouth and Middlesex County Drug Trafficking ConspiracyRead the Press Release
Fourteen Arrests Made in Coordinated Takedown by Federal and State Law Enforcement; One Defendant At Large
TRENTON, N.J. – Fifteen people were charged for their roles in a conspiracy to distribute significant quantities of heroin and cocaine in the Bayshore area of Monmouth and Middlesex counties, U.S. Attorney Craig Carpenito announced today.
Fourteen of the defendants (see chart below) were charged by complaint with conspiracy to distribute 100 grams or more of heroin and all 15 defendants were charged with conspiracy to distribute 500 grams or more of cocaine. Those arrested today are scheduled to have their initial appearances this afternoon before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court. One defendant, Shavar Williams, remains at large.
According to documents filed in this case and statements made in court:
From May 2017 to November 2018 the defendants and others engaged in a drug trafficking conspiracy that operated in the Raritan Bayshore region of Middlesex and northern Monmouth counties.
Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin and cocaine, the use of confidential sources of information, and other investigative techniques, law enforcement learned that defendants Guy Jackson, Richard Gethers, and Deberal Rogers regularly obtained from defendant Gregory Gillens large quantities of heroin and cocaine for distribution. Defendant Lashawn Mealing, Jackson’s wife, also engaged in the conspiracy to distribute these illegal drugs along with her husband.
Members of the conspiracy redistributed the heroin and cocaine supplied by Gillens, for profit, to other conspirators, distributors, sub-dealers, and end users in the Bayshore area. Based on laboratory analysis of heroin obtained via controlled purchases from a member of the conspiracy, the heroin distributed by the conspiracy is believed to contain fentanyl, a dangerous synthetic opioid.
Law enforcement officials intercepted numerous discussions between the conspirators regarding the availability of quantities of heroin and cocaine, pricing, packaging, quantity, and customer satisfaction. The members of the conspiracy frequently took, and discussed taking, affirmative steps to avoid detection by law enforcement, including using prepaid cellular telephones with fictitious or no subscriber information, engaging in counter surveillance of law enforcement vehicles, using multiple vehicles to conduct narcotics transactions, discussing whether certain individuals might be cooperating with law enforcement, and speaking in coded language to disguise the illicit nature of their discussions.
The heroin and cocaine conspiracy counts charged in the complaint each carry a statutory mandatory minimum term of five years and a maximum of 40 years in prison, and a maximum fine of $5 million.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach, Brick, Howell, Toms River, Union Beach and Marlboro police departments, and the Monmouth County Sheriff's Office) under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of the FBI, Philadelphia Division, Scranton Resident Agency, under the direction of Special Agent in Charge Michael T. Harpster; the N.J. State Police, under the direction of Col. Patrick J. Callahan, Superintendent; the Matawan Police Department, under the direction of Chief Thomas J. Falco, Jr.; the Holmdel Police Department, under the direction of Chief John Mioduszewski; the Highlands Police Department, under the direction of Chief Robert Burton; the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Christopher J. Gramiccioni; the Old Bridge Police Department, under the direction of Chief William A. Volkert; the Keansburg Police Department, under the direction of Chief James K. Pigott; the Hazlet Police Department, under the direction of Chief Philip Meehan; and the Aberdeen Police Department, under the direction of Chief John T. Powers, with the investigation leading to today’s charges. U.S. Attorney Carpenito also thanked the Monmouth County Sheriff’s Office, under the direction of Sheriff Shaun Golden; the Monmouth County Police Academy, under the direction of Director Darryl G. Breckenridge; and the Monmouth County Correctional Institution, under the direction of Warden Donald Sutton; for their logistical support.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Name
Age
Residence
Guy Jackson
46
Effort, Pennsylvania
Gregory Gillens
46
Hillside, New Jersey
Lashawn Mealing
47
Effort, Pennsylvania
Richard Gethers
43
Perth Amboy, New Jersey
Deberal Rogers
46
Perth Amboy, New Jersey
Krystal Cordoba
33
Elizabeth, New Jersey
Daniel Alfano
44
Keansburg, New Jersey
Daniel McHugh
48
Sayreville, New Jersey
Tyler Scarangello
33
Belford, New Jersey
David Nagy
41
Old Bridge, New Jersey
Christy Dube
33
Cliffwood, New Jersey
George Holiday, Sr.
47
Union Beach, New Jersey
*Daryl Jackson
45
Old Bridge, New Jersey
Shavar Williams
43
Cliffwood, New Jersey
Brian Hall
47
Howell, New Jersey
*Defendant only charged with conspiracy to distribute cocaine.
Federal Jury Finds Florida Man Guilty of Traveling to Southern Illinois to Engage in Sex with a 13 Year Old ChildRead the Press Release
Abdon faces 10 years to life
Emmanuel D. Abdon, 31, a resident of Florida, was found guilty by a federal jury of enticement of minor (Count 1) and travel with intent to engage in illicit sexual conduct (Count 2). On Count 1, Abdon faces a term of imprisonment of not less than 10 years’ imprisonment, but not more than life, a term of supervised release of at least five years to life, a fine of not more than $250,000, and a special assessment of $100. On Count 2, Abdon faces a term of imprisonment of not more than 30 years, a term of supervised release of at least five years to life, a fine of not more than $250,000, and a special assessment of $100.
The evidence at trial established that, on January 13, 2018, Emmanuel Abdon, then 30 years old, traveled from Florida to Troy, Illinois, to meet and engage in sexual intercourse with a 13 year old female. Abdon visited the minor female’s house on 3 separate occasions. He was arrested in her driveway on his last visit to her house. The offense came to light when a 14 year old friend of the victim, who was present during the first meeting between Abdon and the victim at the victim’s house, told her foster mother about her concern that an adult male would travel from Florida to Illinois to meet a 13 year old girl. The foster mother than contacted the Troy Police Department who immediately launched an investigation. The evidence also established that, from
on or about December 22, 2017, until on or about January 13, 2018, the defendant, met the victim online and through text messaging, Facetime, and Snapchat, attempted to persuade, induce, entice and coerce the minor victim to engage in sexual activity with him when he arrived in Illinois.
"State and federal law enforcement will use every available resource to protect the community from those who lurk in the shadows of the internet seeking to prey upon children," said United States Attorney Steven D. Weinhoeft. Weinhoeft credited the work of the Troy Police Department and the Bureau of Homeland Security – Homeland Security Investigations for their work in this case.
The case is being prosecuted byAssistant United States Attorneys Angela Scott and George Norwood.
East Hartford Doctor Charged with Selling Oxycodone Prescriptions, Medical Marijuana CardsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that Dr. SHEIKH AHMED, 55, of Orange, was arrested today on a federal criminal complaint charging him with offenses related to the illegal prescribing of oxycodone, and illegal certification of patients for state medical marijuana cards.
Following his arrest, Ahmed appeared before U.S. Magistrate Judge Robert M. Spector in New Haven and was released on a $200,000 bond.
As alleged in the criminal complaint, Ahmed is a pediatrician who operates a medical practice, under the name East Hartford Medical Center, at 580 Burnside Avenue in East Hartford. Despite being a pediatrician, Ahmed’s practice does not appear to focus on children.
It is alleged that, between approximately October 2017 and May 2018, the DEA conducted an investigation of Ahmed using both a cooperating individual and an undercover agent who, equipped with recording devices, made visits to Ahmed’s practice in order to obtain prescriptions for Oxycodone. During the visits, Ahmed sought and received cash payment, typically $500, for a prescription. Ahmed did not conduct an appropriate medical examination when prescribing the oxycodone, and he made comments involving what dosage would be least likely to attract the attention of regulators, and what pharmacy was the least careful about monitoring prescriptions.
The complaint also alleges other dangerous and inappropriate ways Ahmed acted in prescribing oxycodone to the cooperating individual and undercover agent.
It is further alleged that, in March 2018, the cooperating individual sought and received a medical marijuana card from Ahmed, paying Ahmed $500 for an oxycodone prescription and $250 for a medical marijuana card. During the visit, Ahmed checked his computer for a qualifying diagnosis permitted by the Connecticut’s Medical Marijuana Program and selected “Complex Regional Pain Syndrome. Ahmed did not consult with the individual about whether he suffered from any condition that would render his use of marijuana medically appropriate.
The complaint alleges that Ahmed has certified approximately 165 patients for medical marijuana cards. Ahmed has used the diagnosis “Complex Regional Pain Syndrome” to justify a marijuana certification for 33 patients, and the majority of the certifications list a diagnosis of “Post-Traumatic Stress Disorder.”
The complaint charges Ahmed with conspiracy to distribute controlled substances, and aiding and abetting the possession of controlled substances outside the scope of professional practice and not for a legitimate medical purpose. The offenses carry a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the DEA’s New Haven Tactical Diversion Squad, which includes officers from the Bristol, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Eagle Butte Woman Sentenced for Larceny and Failure to AppearRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Larceny and Failure to Appear was sentenced on November 26, 2018, by U.S. District Judge Roberto A. Lange.
Angel Taylor, age 32, was sentenced to 9 months in federal prison on the Larceny charge, and an additional month in prison on the Failure to Appear charge. After being released from custody, Taylor will be on supervised release for 2 years. She was also ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
Taylor was indicted by a federal grand jury on August 16, 2017, for the Larceny charge, and on June 12, 2018, for the Failure to Appear charge. She pled guilty to both charges on September 5, 2018.
The Larceny conviction stemmed from an incident on February 5, 2017, when Taylor stole a pickup and personal property with a value of more than $1,000.00, from an individual.
The Failure to Appear conviction stemmed from an incident on March 21, 2018, when Taylor was summoned to appear before U.S. Magistrate Judge Mark A. Moreno for a scheduled hearing on her Larceny charge and failed to appear for court as directed.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Taylor was immediately turned over to the custody of the U.S. Marshals Service.
Drug Trafficking Kingpin Sentenced to 20 Years in PrisonRead the Press Release
PROVIDENCE - One of three brothers who admitted to running a large scale heroin and cocaine trafficking operation in Rhode Island, Massachusetts, and Connecticut was sentenced today to 20 years in federal prison.
Claudio Valdez, 46, of Woonsocket, and his brothers, Hector Valdez 45, of Woonsocket, and Juan Valdez, 51, of Milton, Mass., previously pled guilty in U.S. District Court in Providence, admitting that they arranged for several multi-kilogram shipments of heroin and cocaine from Mexico to drug stash houses in Cranston and Woonsocket, Rhode Island. The Valdez brothers then oversaw the distribution of the drugs to mid-level drug dealers and street dealers in the greater Providence and greater Boston areas and in Hartford, Connecticut.
Juan Valdez is scheduled to be sentenced on December 14, 2018. Hector Valdez is scheduled to be sentenced on January 18, 2019.
The three men, Dominican nationals, reentered the country illegally after having been previously convicted of felony drug crimes and deported. Immigration detainers have been lodged against all three.
At sentencing today, U.S. District Court Judge John J. McConnell, Jr., sentenced Claudio Valdez to 240 months in federal prison to be followed by 5 years supervised release.
As stipulated in a plea agreement filed with the Court, both the government and the defense recommended the Court impose a sentence of 240 months of incarceration. The U.S. Sentencing Guideline imprisonment range in this matter is 324 months to 405 months.
Claudio Valdez’s sentence is announced by United States Attorney Stephen G. Dambruch and Harold H. Shaw, Special Agent in Charge of the Boston Division of the FBI.
In April 2017, based on information developed by the FBI Safe Streets Task Force during an investigation dubbed “Operation Triple Play,” a reference to the three Valdez brothers, the FBI, assisted by federal, state, and local law enforcement agents and officers in three states, executed 15 federal arrest warrants and 13 search warrants. Immigration detainers were lodged against 9 of the defendants charged in this matter, identified as Dominican nationals, most of which were living in the United States with what are alleged to be stolen identities.
During the course of the investigation that began in September 2016, the FBI Safe Streets Task Force seized nearly 3.5 kilograms of fentanyl, nearly 4 kilograms of heroin - most of which was laced with fentanyl, more than 1.6 kilograms of cocaine, 142 grams of crack cocaine, more than 137 pounds of cutting agents, $45,500 in cash and 9 vehicles. 5 of the vehicles had hidden compartments used for transporting drugs and money.
The cases are being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan, with the assistance of Assistant U.S. Attorneys William J. Ferland, Ronald A. Gendron, and Richard W. Rose.
Operation Triple Play is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation initiated by the FBI Safe Streets Task Force. Under the direction of the FBI, the participating agencies in this investigation included the Drug Enforcement Administration (Providence and Boston Resident Agencies), Immigration and Customs Enforcement, Rhode Island State Police, Providence Police Department, Woonsocket Police Department, Central Falls Police Department, Cranston Police Department, Warwick Police Department, and the Rhode Island Department of Corrections.
###
Drug Dealer and User Who Possessed Numerous Guns Sentenced to over Twelve Years in PrisonRead the Press Release
A drug dealer and user who possessed numerous guns, sold cocaine, and accidently shot someone after smoking marijuana was sentenced today to more than a dozen years in federal prison.
Kyler Jacob Junkins, age 20, from Marion, Iowa, received the prison term after a June 28, 2018, guilty plea to being a drug user in possession of a firearm and distribution of cocaine.
In a plea agreement, Junkins admitted that on March 28, 2017, he possessed a .22 caliber rifle. Information at sentencing showed that on that day, Junkins used marijuana and then accidently shot the rifle. The gunshot struck another person in the abdomen. Junkins admitted to possessing at least eight other guns in 2016 through 2017. One of the guns had an obliterated serial number and another gun had been altered in an attempt to make it silent. Junkins also admitted to selling cocaine on multiple occasions and trading drugs for guns.
Junkins was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Junkins was sentenced to 151 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department of Justice 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.
Junkins is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew Inman and Assistant United States Attorney Anthony Morfitt and investigated by the Bureau of Alcohol, Tobacco, and Firearms, the Marion Police Department, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-cr-16.
Follow us on Twitter @USAO_NDIA.
Dominican National Pleads Guilty to Social Security FraudRead the Press Release
BOSTON - A Dominican national pleaded guilty today in federal court in Boston to Social Security fraud.
Luis Alberto Fernandez Fernandez, 28, a Dominican national residing in Salem with legal permanent resident status, pleaded guilty to one count of false representation of a Social Security number. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Feb. 27, 2019. Fernandez Fernandez was arrested in July 2018 as part of a law enforcement sweep aimed at detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
In September 2016, before he became a lawful permanent resident, Fernandez Fernandez applied for a Massachusetts ID card using the name, Social Security number, and date of birth of a U.S. citizen from Puerto Rico. His application was denied.
The charge of false representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
District Man Sentenced to 27 Months in Prison for Escaping from Halfway House in Southeast WashingtonRead the Press Release
WASHINGTON – Lonniel Peterson Jr., 28, of Washington, D.C., has been sentenced to 27 months in prison after pleading guilty to escaping from a halfway house in the District of Columbia, announced U.S. Attorney Jessie K. Liu and Robert Turner, United States Marshal for the District of Columbia. Peterson pled guilty to the escape charge in October 2018 in the U.S. District Court for the District of Columbia. He was sentenced on Nov. 27, 2018, by the Honorable Timothy J. Kelly. Following his prison term, he will be placed on two years of supervised release.
Peterson was among two defendant to be sentenced this week as a result of ongoing efforts of the U.S. Marshals Service and the U.S. Attorney’s Office to arrest violent offenders who escape from halfway houses. In the other case, a federal judge sentenced Daquan Jackson, 22, of Washington, D.C., to a 33-month prison term for a similar escape.
In 2017, the U.S. Marshals Service requested the assistance of the U.S. Attorney’s Office with the investigation, prosecution, and disposition of an increased number of escape cases. The escapees were under the supervision of the Federal Bureau of Prisons and were afforded an opportunity to complete the final portion of their sentences at halfway houses to assist in their reentry to the community. To date, the effort has led to 23 felony convictions of defendants who failed to report or absconded from the Hope Village Halfway House in Southeast Washington.
According to court documents, Peterson was at Hope Village serving the remainder of a five-year sentence from a 2013 conviction in the Superior Court of the District of Columbia for assault to intent to kill. He began serving that sentence at the Federal Correctional Facility-Schuylkill in Minersville, Pa. On April 4, 2017, he was furloughed to serve the remainder of his sentence at Hope Village. On June 20, 2017, he left Hope Village without authorization and never returned.
Peterson was re-arrested on June 13, 2018 by the Metropolitan Police Department (MPD). According to court filings, Peterson was arrested with 29 blue bags containing suspected crack cocaine and a 9mm semi-automatic pistol. He still faces firearms and narcotics charges in the Superior Court of the District of Columbia stemming from that arrest.
In announcing the sentence, U.S. Attorney Liu and Marshal Turner commended the work of those who investigated the case. They also cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Gregory Rosen, who prosecuted the matter with the assistance of Assistant U.S. Attorney Kevin L. Rosenberg of the Violent Crime and Narcotics Trafficking Section.
Davenport Man Sentenced to Prison for Felon in Possession of a Firearm ChargeRead the Press Release
DAVENPORT, IA – On November 27, 2018, Kevonte Deoblo Kirk, age 23, of Davenport, was sentenced by United States District Court Judge Stephanie M. Rose to 30 months in prison, following his guilty plea to a Felon in Possession of a Firearm charge, announced United States Attorney Marc Krickbaum. Kirk was ordered to serve three years of supervised release to follow his prison term and pay $100 special assessment to the Crime Victims’ Fund.
Kirk pleaded guilty to the charge on July 16, 2018. On March 15, 2015, Davenport Police Officers were dispatched to 732 W. 14th Street in reference to gun shots fired. Dispatch advised law enforcement that a gray sedan was involved. Officers arrived in the area and observed a vehicle matching that description. The officers followed the vehicle a short distance and a traffic stop was initiated; however, the vehicle fled. A high-speed chase ensued and the suspect vehicle hit other cars and sped over 100 miles per hour. The car then pulled into a gas station and all three passengers fled the vehicle.
Officers apprehended Kirk as he attempted to climb over a fence. A search incident to arrest revealed a loaded Hellcat .380 caliber gun in his left front pocket. Kirk admitted that he had the gun for protection and knew it was loaded. Kirk was currently on probation for a felony deferred judgment. Two shell casings recovered from the shooting scene matched the gun that was found on Kirk. Further investigation revealed that the firearm had been stolen from a Davenport residence.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Davenport Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Davenport Man Sentenced to 30 Years for Distributing Heroin Resulting in an Overdose DeathsRead the Press Release
DAVENPORT, IA – On November 27, 2018, Larry Lazzez Bolden, age 50, of Davenport, was sentenced by United States District Court Judge Stephanie M. Rose to 360 months of imprisonment after pleading guilty to Distribution of a Controlled Substance Resulting in Death, announced United States Attorney Marc Krickbaum. Bolden was ordered to serve a period of supervised release of five years to follow his prison term and pay a $100 special assessment to the Crime Victims’ Fund.
Bolden pleaded guilty to the charge on June 27, 2018. On December 28, 2016; January 7, 2017; January 29, 2017; and January 31, 2017; Bolden distributed a mixture or substance containing heroin to a confidential source. On January 20, 2017, T.Z., N.S., and another individual traveled to the Knights Inn hotel in Davenport, for the purpose of purchasing heroin. T.Z. had previously arranged to purchase $40 in heroin from Bolden. While at the Knight’s Inn hotel, T.Z. obtained heroin from Bolden. After obtaining the substance, the three individuals traveled to T.Z.’s apartment in Rock Island, Illinois, where they ingested the heroin. Within moments, N.S. lost consciousness and died shortly thereafter. Autopsy results confirmed N.S. died due to the “adverse effects of morphine, furanyl fentanyl, and acryl fentanyl.” As part of the plea agreement, Bolden agreed that N.S. would not have died but for the use of the substance Bolden supplied T.Z. on January 20, 2017. Further, Bolden admitted the purported heroin he distributed to T.Z. on January 20, 2017, resulted in the death of N.S. and that N.S.’s death was not merely from a combination of factors to which drug use merely contributed.
During the evening of January 29, 2017, E.M. and two other individuals drove to the Knight’s Inn hotel in Davenport for the purpose of obtaining heroin. E.M. had contacted Bolden’s cellular telephone to arrange the transaction. E.M. went into the Knight’s Inn and obtained the substance. The three of them then drove back to E.M.’s residence in Moline, Illinois, where they ingested the substance shortly thereafter. E.M. was found the next morning (January 30, 2017) deceased. Autopsy results confirmed E.M. died due to the “adverse effects of morphine, furanyl fentanyl, and acryl fentanyl.” Bolden admited E.M. arranged the transaction with the cellular phone belonging to Bolden, and that the transaction took place in the hotel room belonging to Bolden.
This matter was investigated by the Davenport and Rock Island Police Departments.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Cryptocurrency CEO Indicted After Defrauding Investors of $4 MillionRead the Press Release
AriseBank CEO Jared Rice, Sr. was arrested by the FBI on Wednesday, charged with duping hundreds of investors out of more than $4 million in a cryptocurrency scheme, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Mr. Rice, who is also the subject of a civil action filed by the SEC’s Fort Worth regional office earlier this year, was indicted on three counts of securities fraud and three counts of wire fraud.
According to court documents unsealed today, Mr. Rice, 30, allegedly lied to would-be investors, claiming that AriseBank – which he billed as the world’s “first decentralized banking platform” based on a proprietary digital currency called AriseCoin – could offer consumers FDIC-insured accounts and traditional banking services, including Visa-brand credit and debit cards, in addition to cryptocurrency services. In actuality, AriseBank had not been authorized to conduct banking in Texas, was not FDIC insured, and did not have any sort of partnership with Visa.
Even as he touted AriseBank’s nonexistent benefits in press releases and online, Mr. Rice quietly converted investor funds for his own personal use, spending the money on hotels, food, clothing, a family law attorney, and even a guardian ad litem.
He allegedly falsely claimed the “Initial Coin Offering,” or ICO, had raised $600 million within just a few weeks and failed to disclose that he’d plead guilty to state felony charges in connection with a prior internet-related business scheme. Meanwhile, investors were buying AriseCoin using digital currencies like Bitcoin, Ethereum, Litecoin, and fiat currency.
“My office is committed to enforcing the rule of law in the cryptocurrency space,” said Nealy Cox. “The Northern District of Texas will not tolerate this sort of flagrant deception – online or off.”
An Indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law. If convicted, Mr. Rice faces up to 120 years in federal prison.
The Federal Bureau of Investigations conducted the investigation. Assistant U.S. Attorneys Mary Walters and Sid Mody are prosecuting the case.
Cincinnati Man Sentenced to 18 Years for Distributing Cocaine in Boone County, KentuckyRead the Press Release
COVINGTON, Ky. — Richard Crawford, Jr., 54, of Cincinnati, was sentenced Tuesday, to 18 years in federal prison for Distribution and Possession of Cocaine in Boone County, Kentucky. Crawford was sentenced by United States District Judge David Bunning.
Crawford was convicted in August 2018, following a three-day jury trial. According to evidence at trial, Crawford sold an ounce of cocaine to a confidential informant working with law enforcement, on June 27, 2017 in Florence, Kentucky. Two days later, law enforcement executed a search warrant on Crawford’s apartment in Florence, Kentucky, finding more than 400 grams of cocaine and crack cocaine, evidence of drug paraphernalia, and cash used by the confidential informant to purchase cocaine. Crawford has an extensive criminal history, including three prior convictions for trafficking in cocaine. Based on these prior convictions, Crawford qualified as a “career offender” under the United States Sentencing Guidelines, subjecting him to an increased sentence.
Under federal law, Crawford must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for six years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), jointly made the announcement.
The investigation was conducted by the DEA and the Northern Kentucky Drug Strike Force. The United States was represented by Assistant United States Attorneys Wade T. Napier, Jennifer K. Weinhold, and Tony Bracke.
Cedar Rapids Man Sentenced to Federal Prison for Illegally Possessing a GunRead the Press Release
A convicted felon who illegally possessed a gun after previous felony drug convictions was sentenced today to two months in federal prison.
Alan Cherry, age 39, from Cedar Rapids, Iowa, received the prison term after a guilty plea to being a felon in possession of a firearm and ammunition.
In a plea agreement, Cherry admitted that on February 24, 2018, he was driving a car that was stopped by the Cedar Rapids Police Department. Cherry told officers that he had a gun in the car. Officers searched the car and found a semi-automatic 9mm pistol and ammunition. Cherry had previously been convicted of manufacture and delivery of marijuana and manufacture and delivery of cocaine, both of which are felony drug offenses.
Cherry was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Cherry was sentenced to two months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Cherry was released on the bond previously set and is to surrender to the United States Marshal on December 31, 2018.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-0045. Follow us on Twitter @USAO_NDIA.
Cedar Rapids Man Convicted of Carjacking and Robbery While Using a GunRead the Press Release
A Cedar Rapids man who carjacked an eighteen-year old woman at gunpoint and carried a loaded handgun during the robbery of a Cedar Rapids cell phone store was convicted by a jury on November 27, 2018, after a two-day trial in federal court in Cedar Rapids.
Cedric Antonio Wright, age 22, from Cedar Rapids, Iowa, was convicted of four counts: carjacking, carrying and brandishing a firearm during and in relation to the carjacking; unlawful possession of a firearm as a felon and unlawful drug user; and carrying a firearm during and in relation to the robbery of a Sprint Store in Cedar Rapids. The verdict was returned following about one hour of jury deliberations. Wright had previously pled guilty in the same case when, on October 29, 2018, he pled guilty to one count of robbery and conspiracy to rob the Sprint phone store.
The evidence at trial showed that on October 22, 2017, Wright carjacked an eighteen-year old Kirkwood Community College student who was returning to her apartment near Kirkwood after spending the evening with her parents. As the student parked her car outside her apartment, Wright approached and pointed a handgun at her head while demanding she give Wright her car keys and cell phone. The student gave a description of Wright to the police, including the fact that he was wearing a black face mask and camouflage clothing. The student later identified a photo of Wright that appeared online and also identified Wright from a group of photos at the Cedar Rapids Police Department.
Trial evidence showed that on October 23, 2017, Derrick Ford agreed to give Wright and Gage Rupp a ride in his minivan from southeast Cedar Rapids to an apartment complex on the west side of Cedar Rapids, where Wright claimed the group could transfer into his sister’s car. After getting into the other car, the group drove to and parked in a parking lot adjacent to the strip mall where the Sprint Store was located. The group sat in the car and watched as customers in the store completed their business and left the store. The lone clerk in the store then began to prepare the store for closing. Ford was then directed to drive to the side of the cell phone store and park, where Wright and Rupp got out of the car and put on gloves and clothing to partially obscure their faces. Wright and Rupp then entered the store and demanded the clerk let them into the room where the store inventory was located. The clerk complied and testified at trial he did so because the robbers entered the store aggressively and he felt in fear of his life.
Wright and Rupp returned to the waiting car with more than $1000 in cash and about $40,000 in cell phones and other electronic devices they had stolen from the store. One of the stolen devices was a tracker that alerted police of the robbery. The group then drove back to the west side apartment complex. Wright and Rupp celebrated along the way, and Rupp stated how “sweet” it was that they “didn’t even have to use the gun.” Upon returning to the apartment complex where Ford’s minivan was parked, Wright stated that that they all needed to get back in Ford’s minivan because the car they were in was stolen.
Police responded to the tracking device within a few minutes. The group spotted the police and Wright attempted, unsuccessfully, to get Ford to hide a handgun in the console of the van. The police then pulled over the minivan and detained Wright, Rupp, and Ford. The police located the stolen cash, phones, and electronic devices inside the minivan. The police also recovered a loaded .40 caliber Smith and Wesson handgun from inside the van. The car used in the robbery was determined to have been stolen from the student the previous evening.
Investigators discovered the handgun had been purchased by one of Wright’s friends in Indiana several weeks prior to the Sprint Store robbery. Evidence at trial included several photos from Wright’s Facebook account showing Wright in possession of the same handgun. A video from the Facebook account showed Wright shooting the gun seized from the minivan at a gun range. Other photos taken from Wright’s Facebook account showed him wearing items of camouflage clothing and a black knit ski-type mask. Videos taken from the Facebook account showed Wright in possession of other handguns.
Finally, the evidence showed Wright had a prior aggravated robbery conviction in Illinois in 2016 for committing a robbery while threatening the use of a firearm in the course of the robbery.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Wright remains in custody of the United States Marshal pending sentencing. Wright faces a mandatory minimum sentence of 32 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,500,000 fine, and 22 years’ of supervised release following any imprisonment.
Rupp previously pleaded guilty to participating in the robbery of the Sprint Store, conspiring to commit the robbery, and carrying a firearm during and in relation to the robbery. Ford previously pleaded guilty to conspiring to commit the robbery of the Sprint Store. Both men are pending sentencing at a future date.
The case is being prosecuted by Assistant United States Attorneys Richard Murphy and Emily Nydle and was investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl .
The case file number is 18-CR-0015.
Follow us on Twitter @USAO_NDIA.
Carrollton Man Indicted on Child Sexual Exploitation ViolationsRead the Press Release
PLANO, Texas – A 49-year-old Carrollton, Texas man has been indicted for child exploitation charges in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Joseph Patrick Mosher was named in an indictment returned by a federal grand jury on Nov. 15, 2018 charging him with sexual exploitation of a child. Mosher appeared before U.S. Magistrate Judge Kimberly Priest Johnson on Nov. 19, 2018 and was ordered to be detained until trial.
According to the indictment, in September of 2018, a teenager known to Mosher reported to school officials that he believed he had been secretly filmed in a bathroom of Mosher’s home. Carrollton Police Department detectives executed a search warrant at the home and seized a number of hidden cameras and electronic devices. A forensic review of those devices revealed a number of videos of males captured in private spaces within the home. It appeared that the males did not know they were being recorded or that Mosher had obtained footage of them engaged in private or personal activities.
If convicted, Mosher faces a minimum of 15 years and up to 30 years in federal prison.
Any minors who may have had contact with Joseph Patrick Mosher or visited his home are urged to contact the U.S. Attorney’s Office at 1-800-804-3547. The U.S. Attorney’s Office will take the necessary steps to protect all minors’ identities and confidential information.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Homeland Security Investigations and the Carrollton Police Department and is being prosecuted by Assistant U.S. Attorney Marisa J. Miller.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Carjacker Sentenced to over 12 Years in Prison Under Project EJECTRead the Press Release
Jackson, Miss. – Reginald Henderson, 26, of Jackson, was sentenced yesterday by U.S. District Judge David C. Bramlette III to serve a total of 150 months in prison followed by five years of supervised release for armed carjacking and brandishing a firearm, announced U.S. Attorney Mike Hurst and Christopher Freeze, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On February 5, 2017, Jackson Police officers responded to an armed carjacking that occurred on Grafton Street in Jackson, Mississippi. Upon arrival, the victim told officers that she had been carjacked at gunpoint of her 2016 Chevrolet Equinox while in the driveway of her home. JPD Officers identified the stolen vehicle in transit on I-55 South in Jackson with a male subject driving the vehicle. Officers pursued the vehicle until the driver wrecked near Terry Road and I-20 East in Jackson. Henderson was identified as the driver and placed under arrest. A .45 caliber handgun was located in the vehicle at the time Henderson was arrested. Henderson was wearing an ankle monitor at the time of arrest and is also a previously convicted felon.
"I applaud the men and women of the Jackson Police Department for responding so quickly to this carjacking and apprehending this violent criminal before he could harm someone else. I also commend the FBI for assisting in the investigation and our prosecutors for seeing that justice is done. This is another great example of Project EJECT making our citizens safer by taking violent criminals off our streets and delivering justice to victims," said U.S. Attorney Mike Hurst.
This case was investigated by the Federal Bureau of Investigation and the Jackson Police Department. It was prosecuted by Assistant United States Attorney Candace Mayberry.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson
Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Butler County Woman Charged with Theft of Social Security FundsRead the Press Release
PITTSBURGH, PA – A Butler County resident has been indicted by a federal grand jury in Pittsburgh on charges relating to theft of Social Security funds, United States Attorney Scott W. Brady announced today.
The two-count Indictment, returned on Nov. 27, named Pattie Lou Smith, 56, of Connoquenessing, as the sole defendant.
According to the Indictment, between December 30, 2013 and February 28, 2017, Smith knowingly received and converted Supplemental Security Income benefits to which she knew she was not entitled, in an amount exceeding $1,000.00. In addition, over the same time period, Smith concealed and failed to disclose her husband’s continued presence in her household to the Social Security Administration, with the intent fraudulently to secure SSI benefits.
The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Adam N. Hallowell is prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bronx Man Sentenced to More Than 12 Years in Prison for Facilitation of Sex Trafficking, Drug Trafficking, Firearms, and Identity Theft CrimesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that KEVIN PINNOCK, a/k/a “Kev Savage,” a/k/a “Sav,” was sentenced yesterday to 12 years and three months in prison for using the internet to facilitate sex trafficking, possessing crack cocaine with intent to distribute, possessing a firearm in furtherance of drug trafficking, and possessing stolen identification documents. PINNOCK previously pled guilty before United States District Judge Deborah A. Batts, who also imposed yesterday’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Kevin Pinnock used violence and coercion to force women to engage in commercial sex for his own profit. He will now serve a substantial prison sentence for his crimes. The prosecution of Kevin Pinnock is part of our determined effort to deliver justice to victims of sex trafficking and other forms of commercial exploitation, and to deter others from engaging in this predatory criminal conduct.”
In sentencing PINNOCK, Judge Batts said: “The nature of the crimes in which the defendant was convicted” were “unspeakable, violent, gratuitous crimes he arrogantly committed on young women for his financial gain,” and that his theft of others’ identities “show[s] a shocking disregard on the part of the defendant for the havoc his crimes create for innocent victims in terms of their ruined credit and long-term ramifications on their financial lives.”
According to the Complaint, Indictment, Superseding Indictment, and other documents filed in the case, as well as statements made during court proceedings:
In 2015 and 2016, PINNOCK posted online advertisements to solicit customers to engage in commercial sex with women PINNOCK forced into prostitution by violence, abuse, and coercion. PINNOCK retained virtually all of the profits from his sex trafficking business.
Since at least November 2016, PINNOCK sold crack cocaine and possessed a loaded firearm, which had been stolen, in order to protect his drug dealing business. He also possessed dozens of stolen identification cards – including driver’s licenses and Social Security cards – which he sold to other individuals who were engaged in identity theft and fraud. Many of the identification cards had been obtained through the commission of robberies.
* * *
In addition to his prison term, PINNOCK, 22, of the Bronx, New York, was sentenced to three years of supervised release, a forfeiture money judgment in the amount of $15,000, and restitution in the amount of $100,000.
Mr. Berman praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and United States Immigration and Customs Enforcement’s Homeland Security Investigations, and thanked the United States Secret Service, the Social Security Administration’s Office of the Inspector General, the New York City Police Department, and the Bronx County District Attorney’s Office for their assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Robert B. Sobelman is in charge of the prosecution.
Boston Man Charged with Drug TraffickingRead the Press Release
BOSTON – A Boston man was charged today in federal court in Boston with drug distribution.
Robert Santos, 24, was indicted on one count of possessing with intent to distribute crack cocaine.
The charge of possession with intent to distribute crack cocaine provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Chris Looney of Lelling’s Criminal Division is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Belmont County man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Joseph Ivan Burt, of Bridgeport, Ohio, was sentenced today to 27 months incarceration for a drug charge, United States Attorney Bill Powell announced.
Burt, age 39, pled guilty to one count of “Aiding and Abetting the Distribution of Cocaine Base” in June 2018. Burt admitted to selling crack cocaine near Madison Elementary School on September 22, 2016 in Ohio County.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Baton Rouge Man Sentenced to Federal PrisonRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced THANH TRAN, age 41, of Baton Rouge, Louisiana, to 40 months in federal prison for possession with intent to distribute marijuana, and an additional 24 months for a 2008 conviction for conspiracy to distribute MDMA from which he was on supervised release.
In September 2017, Baton Rouge Police Department (“BRPD”) narcotics detectives received information that TRAN was involved in the distribution of controlled substances. On September 14, 2017, BRPD narcotics detectives conducted surveillance of TRAN at an apartment complex in Baton Rouge. They observed TRAN place two large black trash bags in the back of his BMW SUV and then drive away. When TRAN began driving erratically, the BRPD officers conducted a traffic stop in the 11300 block of Archery Drive in Baton Rouge.
TRAN told the BRPD officers that he had 15 lbs. of marijuana in his vehicle. When the officers searched the BMW SUV, they found approximately 30 lbs. of suspected marijuana and about $10,000 cash in the vehicle. The officers also found approximately $5,000 cash in TRAN’s pockets.
At the time of his arrest, TRAN was on supervised release from a previous federal conviction of conspiracy to distribute MDMA.
U. S. Attorney Fremin stated, “This prosecution is part of this office’s fight against habitual drug dealers and our efforts to keep our community free from illegal drugs. I congratulate our prosecutors, the Drug Enforcement Administration, and the Baton Rouge Police Department for their successful investigation and prosecution.”
This matter was investigated by the Drug Enforcement Administration and the Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Brad Casey.
Attorney Admits Filing False Tax ReturnsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that JUSTIN C. FREEMAN, 46, of Manchester, waived his right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a federal tax charge related to his filing false tax returns that substantially underreported his income.
According to court documents and statements made in court, Freeman is an attorney who owns and operates his own law practice, The Law Offices of Justin C. Freeman, based in Hartford. For the 2010, 2011 and 2012 tax years, Freeman signed individual federal income tax returns that significantly underreported the income he received from his law practice. The returns were subsequently filed by his tax preparer.
For 2010, Freeman reported $476,228 in total income, but actually earned $860,041.93. For 2011, he reported $410,002 in total income, but actually earned $1,093,147.43. For 2012, he reported $529,673 in total income, but actually earned $696,559.43.
Freeman pleaded guilty to one count of filing a false tax return. Judge Dooley scheduled sentencing for February 20, 2019, at which time Freeman faces a maximum term of imprisonment of three years and a fine of up to approximately $840,000. He has paid $419,259 in back taxes, and has agreed to cooperate with the IRS to pay all outstanding taxes, interest and penalties.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
Apollo Couple Charged with Defrauding Social SecurityRead the Press Release
PITTSBURGH, PA – Two Armstrong County residents have been indicted by a federal grand jury in Pittsburgh on charges relating to Social Security fraud, United States Attorney Scott W. Brady announced today.
The four-count indictment, returned on Nov. 27, named Tara Jo Frain, age 33, and Danny Ray Alexander, age 45, both Apollo, PA, as defendants.
According to the Indictment, between November 29, 2013 and December 30, 2016, Frain and Alexander each knowingly received and converted Supplemental Security Income benefits to which they knew they were not entitled, in an amount exceeding $1,000.00 each. In addition, on or about September 10, 2016, Frain and Alexander each made a false statement material to their right to receive SSI benefits by falsely stating that they were not married.
As to both Frain and Alexander, the law provides for a maximum total sentence of 15 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Adam N. Hallowell is prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Another Sent to Prison in Fort Hood Soldier Alien Smuggling CaseRead the Press Release
BROWNSVILLE, Texas – A 54-year old who had been illegally residing in Houston has been ordered to federal prison following her conviction of conspiracy to transport and harbor undocumented aliens and illegal re-entry after deportation, announced U.S. Attorney Ryan K. Patrick. Victoriano Zamora-Jasso aka “Tata,” pleaded guilty Jan. 29, 2018, on the eve of jury selection.
Today, U.S. District Judge Rolando Olvera handed Zamora-Jasso a 21-month sentence. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence.
In early 2014, Zamora-Jasso began supplying aliens to Arnold Gracia, 48, from Harlingen. Gracia would then make arrangements with others to transport the aliens through the immigration checkpoint at Sarita. Gracia recruited Brandon Troy Robbins, 24, of San Antonio, Eric Alexander Rodriguez, 25, of Odem, Christopher David Wix, 24, of Abilene, and Yashira Perez-Morales, 28, from Watertown, New York – all then active duty soldiers stationed at Ft. Hood - to transport and deliver the aliens further north.
The conspiracy continued from approximately March to September of 2014. The soldiers would conceal the aliens under their military gear and made many successful trips during the course of the conspiracy.
Zamora-Jasso was indicted in 2016 and arrested after a traffic stop in Conroe in July 2017. At the time of his plea, he admitted his involvement in the conspiracy and to being a previously convicted alien who returned after deportation in 2013.
Gracia and all the soldiers were previously sentenced in 2015 and 2016 with Gracia receiving a 73-month sentence while Robbins, Rodriguez, Wix and Perez-Morales received sentences of 20, 12 months, 12 months and a day and five years probation, respectively.
Zamora-Jasso will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigation conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorneys Oscar Ponce and Angel Castro are prosecuting the case.
Aliquippa Man Charged with Violating Federal Drug and Gun Laws following Investigation by PSP and ATFRead the Press Release
PITTSBURGH – A federal grand jury returned an indictment today against a resident of Beaver County, Pennsylvania, on charges of violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment, returned on Nov. 27, named Landon Alexander Gatta, 23, of Aliquippa, Pennsylvania, as the sole defendant.
According to the Indictment, on November 5, 2018, in the Western District of Pennsylvania, Gatta possessed with intent to distribute 40 grams or more of a mixture containing fentanyl and heroin. Gatta, a felon, also is charged with unlawfully possessing a firearm and ammunition on November 5, 2018, and possessing that firearm in furtherance of a drug trafficking crime. Federal law prohibits felons from possessing a firearm or ammunition.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of up to $5,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Albuquerque Man Sentenced for Mail TheftRead the Press Release
ALBUQUERQUE – Eric R. Powell, 33, of Albuquerque, N.M., was sentenced today in federal court in Santa Fe, N.M., to five years of probation including eight months of home confinement for mail theft.
Powell pled guilty on May 3, 2017, to a charge of theft or receipt of stolen mail. According to court documents, he possessed stolen mail from more than 1,300 victims and caused his victim’s more than $13,000 in financial losses. In pleading guilty, Powell admitted that he stole mail from numerous mailboxes in Albuquerque using a counterfeit U.S. Postal Service Arrow Key. Powell also admitted that he paid for a hotel room using a credit card he found in stolen mail. He also admitted buying various items with credit and debit cards, checks, and gift cards he obtained from stolen mail.
This case was investigated by the U.S. Postal Inspection Service and the Rio Rancho Police Department. Assistant U.S. Attorney Brandon Fyffe prosecuted the case.
Additional Charges Filed Against Schuylkill County Man Previously Charged with Threatening the PresidentRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury today returned a superseding indictment yesterday adding seven additional charges against Shawn Christy, age 27, of McAdoo, who was previously indicted for threatening to harm President Trump and others.
According to United States Attorney David J. Freed, the superseding indictment charges Christy with interstate transportation of a stolen vehicle, two counts of interstate transportation of a stolen firearm, two counts of interstate transportation of a firearm while under a felony information, one count of unlawful possession of a firearm as a convicted felon, and one count of unlawful possession of a firearm as a fugitive.
The superseding indictment also contains the four threat offenses that were charged in the original indictment, including the threat against President Trump.
The superseding indictment alleges that Christy committed the new offenses between July 25, 2018 and August 20, 2018.
The threat to President Trump is being investigated by United States Secret Service, and the other charges are being investigated by the Federal Bureau of Investigation, and Butler Township Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each of the unlawful possession of firearms offenses and the interstate transportation of stolen firearms offenses is 10 years’ imprisonment. The maximum penalty for the interstate transportation of stolen vehicle offense is 10 years’ imprisonment. The maximum penalty for the interstate transportation of firearms while under a felony information is five years’ imprisonment. The maximum penalty for each threat offense is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
27 November 2018
Wentzville Man Pleads Guilty to Impersonating an FBI Agent and Possession of a Document-Making ImplementRead the Press Release
St. Louis, MO – Mark Van Ronzelen, 45, of Wentzville, pled guilty to impersonating a Federal Bureau of Investigation (FBI) special agent and felony possession of a document-making implement or authentication feature. Sentencing has been set for March 5, 2019.
According to court documents, the Wentzville Police Department received a report that Van Ronzelen falsely represented that he was a Federal agent to an off-duty police officer. At the time he encountered the off-duty officer, Van Ronzelen possessed and displayed a fraudulent Federal Bureau of Investigation identification card and what appeared to be a law enforcement badge.
During a search of the defendant’s residence, investigators recovered various fraudulent press and law enforcement credentials, including White House Press Pool credentials. Investigators also recovered a laptop computer which contained images and templates used to make the various credentials.
"If someone knocking on your door identifies him/herself as an FBI special agent, you can easily verify that information," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "Ask to see FBI credentials, which includes a photo, and then call the local FBI field office to confirm."
Van Ronzelen faces a maximum penalty of 6 months in prison and a fine of $5,000 on the possession of a fraudulent FBI identification card and a maximum penalty of 15 years in prison and a $250,000 fine on the possession of a document-making implement. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provides recommended sentencing ranges.
This case is being investigated by the Federal Bureau of Investigation, the United States Secret Service, and the Wentzville Police Department. Assistant U.S. Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
United States Files Complaint to Forfeit More Than $3 Million from Companies Accused of Laundering Funds to Benefit Sanctioned North Korean EntitiesRead the Press Release
WASHINGTON - The United States has filed a complaint to forfeit $3,167,783 associated with a cooperating Singapore-based company (“Cooperating Company”); Apex Choice Ltd. (“Apex Choice”), a Chinese-based wax company; and Yuanye Wood Ltd. (“Yuanye Wood”), a Chinese-based wood company, announced U.S. Attorney for the District of Columbia Jessie K. Liu and Michael DeLeon, Special Agent in Charge of the FBI Phoenix Field Office.
The complaint alleges that these three companies laundered United States dollars on behalf of sanctioned North Korean banks. According to the complaint, the North Korean banks used these laundered funds as part of a scheme to procure goods for the North Korean regime, as well as to illegally access the U.S. financial market.
The three companies allegedly were part of a scheme to launder payments to subsequently sanctioned entities, to include: Velmur Management Pte. Ltd. (“Velmur”), which the U.S. Treasury Department sanctioned for procuring Russian petroleum products for North Korea; Dandong Zhicheng Metallic Material Co. (“Dandong Zhicheng”), which the Treasury Department sanctioned for purchasing coal from North Korea, and then in turn laundering the proceeds of those sales to purchase items for North Korea, including nuclear and missile components; and Wee Tiong (S) Pte. Ltd. (“Wee Tiong”), which the Treasury Department sanctioned for laundering money through the U.S. financial system on behalf of North Korea.
The complaint also seeks a civil monetary penalty against Apex Choice and Yuanye Wood for prior sanctions and money laundering violations related to this scheme.
“This complaint alleges that parties in China and Singapore are part of a global money laundering network that coordinates with front companies to move North Korean money through the United States and violate the sanctions imposed by our government on North Korea,” said U.S. Attorney Jessie K. Liu. “This case demonstrates that we will seek significant remedies to address companies that violate U.S. national security, regardless of where they are doing business.”
“The FBI has found numerous foreign companies participating in North Korea’s scheme to launder money,” said FBI Special Agent in Charge Michael DeLeon. “As North Korea continues to find creative ways to circumvent international sanctions, we hope this investigation will compel foreign companies to do their due diligence when it comes to conducting business transactions and/or making third party payments using U.S. dollars. The FBI will continue to dedicate substantial resources to these types of investigations in order to stop illicit transactions. Companies engaging in deceptive banking practices may face criminal or civil action, and could be forced to forfeit funds.”
The complaint was filed on Nov. 26, 2018, in the U.S. District Court for the District of Columbia. According to the complaint, designated North Korean banks use companies, including the “Cooperating Company,” Apex Choice, and Yuanye Wood, to make U.S. dollar payments to North Korean front companies, which are managed by sanctioned North Korean banks.
The United Nations Panel of Experts described in 2017 how North Korean banks have been able to evade sanctions and continue to access the international banking system. Specifically, despite strengthened financial sanctions, North Korean networks are adapting by using greater ingenuity in accessing formal banking channels. This includes maintaining correspondent bank accounts and representative offices abroad that are staffed by foreign nationals making use of front companies. These broad interwoven networks allow North Korean banks to conduct illicit procurement and banking activity.
The complaint alleges activity by the three companies that tracks this paradigm. The first company which is the subject of the complaint, the one identified as “Cooperating Company,” has agreed to the forfeiture of its funds. As part of its agreement to cooperate with the government, this company acknowledged that it was directed by an unauthorized Chinese money remitter to send payments to North Korean companies, when this company was seeking discounted rates for exchanging currency. Apex Choice, a wax company, is accused of paying numerous North Korean front companies with no relation to the wax industry. In a submission to the government, Apex Choice claimed that the known North Korean financial facilitators were wax companies in China. Chilbo, a North Korean wood exporting company based out of Equatorial Guinea, allegedly sold wood produced by North Koreans in forced labor camps to Yuanye Wood. According to the complaint, Yuanye Wood paid known North Korean financial facilitators for these services.
The claims made in the complaint are only allegations and do not constitute a determination of liability.
The FBI’s Phoenix Field Office is investigating the case. Assistant U.S Attorneys Arvind K. Lal, Zia M. Faruqui, and Brian P. Hudak are litigating the case, with assistance from Paralegal Specialist Brian Rickers, Legal Assistant Jessica McCormick and former Paralegal Specialist Toni Anne Donato, and Assistant U.S Attorney Ari Redbord.
U.S. Postal Service Workers Sentenced for Accepting Bribes to Deliver Cocaine through the MailRead the Press Release
ATLANTA – The last defendant of a group of 16 U.S. Postal Service letter carriers and clerks from across the Atlanta area was sentenced to federal prison for accepting bribes to deliver packages of cocaine – two kilograms or more at a time – in a wide-reaching undercover operation. The defendants were willing to make the deliveries for bribes as low as $250, and received sentences of between three and nine years in prison.
“U.S. Postal Service workers are typically valuable members of the community, entrusted to deliver the mail every day to our homes,” said U.S. Attorney Byung J. “BJay” Pak. “This important operation identified and prosecuted 16 corrupt individuals who chose to abuse that trust and instead used their positions to bring what they thought were large amounts of dangerous drugs into those same communities for a quick payoff.”
“The FBI places a high priority on public corruption based investigations and we hope this sentencing will serve as a deterrent for others,” said Chris Hacker, Special Agent in Charge, FBI Atlanta Field Office. “The blatant abuse of the public trust in this case not only stains the reputation of all U.S. Postal Service employees, but it puts the residents on their routes in significant danger by bringing drugs into their community.”
“Postal employees are paid to deliver mail, not drugs,” said Imari R. Niles, Special Agent in Charge, U.S. Postal Service Office of Inspector General, Capital Metro Area Field Office. “The vast majority of the Postal Service’s 600,000 employees are hard-working, trustworthy individuals. When postal employees decide to risk their job, benefits, retirement, and freedom to get involved with drug trafficking, Special Agents of the U.S. Postal Service Office of Inspector General will work with the Federal Bureau of Investigation, DeKalb County District Attorney’s Office and the U.S. Attorney's Office to put them all in federal prison.”
“Drug trafficking, in itself, is an inherently dangerous crime,” said Sherry Boston, DeKalb County District Attorney. “When perpetrated by those in positions of public trust, citizen safety is severely compromised. The DeKalb County District Attorney’s Office is committed to working with our law enforcement partners to ferret out cases of public corruption and ensure that those who abuse their authority and violate the public’s trust, are held accountable for their actions.”
According to U.S. Attorney Pak, the charges and other information presented in court: In 2015, federal agents involved in the dismantling of a drug trafficking organization in Atlanta learned that drug traffickers had been bribing postal workers to intercept and specially deliver packages of drugs while they were on their regular routes, including through residential neighborhoods. The drug traffickers believed the postal workers were less likely to be caught by law enforcement because of their official jobs, and found that the corrupt postal workers were willing to hand deliver the drugs in exchange for bribes. That criminal partnership exploited the U.S. Postal Service to deliver dangerous drugs into the community, and also increased the risk that innocent postal workers and bystanders on their routes would be exposed to the dangerous substances or to rival drug traffickers who sometimes try to rob postal workers to steal packages of drugs.
To catch the corrupt postal workers, federal agents used a confidential source who posed as a drug trafficker looking for postal workers to deliver packages of kilogram quantities of cocaine or marijuana. The defendants agreed to deliver the packages and negotiated the amount of the bribes they would charge, while law enforcement agents watched from a distance and recorded the interactions. All the defendants chose to deliver cocaine instead of marijuana, believing they could charge a higher bribe for packages of cocaine. They also agreed to deliver packages on multiple occasions over a period of time. When the confidential source asked if they knew any other postal workers who did the same thing, some of the defendants introduced the confidential source to coworkers who also wanted to deliver packages (with the defendant claiming an additional bribe for every package their recruit delivered).
The defendants convicted as a result of this operation include:
- Cydra Rochelle Alexander, 33, of Riverdale, Georgia, a letter carrier assigned to the Ralph McGill Carrier Annex and Central City Branch of the Atlanta Post Office was sentenced to five years, 10 months in prison to be followed by four years of supervised release, and ordered to pay forfeiture in the amount of $4,500 by U.S. District Judge Leigh Martin May on February 22, 2018. Alexander pleaded guilty to these charges on November 27, 2017.
- Aurthamis O. Burch, a/k/a Tank, 47, of Snellville, Georgia, a letter carrier assigned to the Doraville Post Office was sentenced to three years, 10 months in prison to be followed by three years of supervised release, and ordered to pay forfeiture in the amount of $1,500 by U.S. District Judge Steve C. Jones on April 10, 2018. Burch pleaded guilty to these charges on December 11, 2017.
- Kawana Rashun Champion, 36, of Jonesboro, Georgia, a clerk assigned to the North Springs Branch of the Sandy Springs Post Office and Central City Branch of the Atlanta Post Office was sentenced to nine years in prison to be followed by four years of supervised release, and ordered to pay forfeiture in the amount of $10,500 by U.S. District Judge Leigh Martin May on May 11, 2018. Champion pleaded guilty to these charges on February 20, 2018.
- Eleanor Lolita Golden, a/k/a Eleanor Johnson, 55, of East Point, Georgia, a letter carrier assigned to the West End Branch of the Atlanta Post Office was sentenced to six years in prison to be followed by four years of supervised release, and ordered to pay restitution in the amount of $4,500 by U.S. District Judge Leigh Martin May on May 17, 2018. Golden pleaded guilty to these charges on December 20, 2017.
- Tonie Harris, 55, of Decatur, Georgia, a letter carrier assigned to the Sandy Springs Post Office was sentenced to three years, one month in prison to be followed by four years of supervised release, and ordered to pay restitution in the amount of $1,450 by U.S. District Judge Steve C. Jones on August 14, 2018. Harris pleaded guilty to these charges on March 20, 2018.
- Leea Janel Holt, 39, of Atlanta, Georgia, a letter carrier assigned to the Old National Branch of the Riverdale Post Office was sentenced to 6 years, 6 months in prison to be followed by 4 years of supervised release, and ordered to pay restitution in the amount of $4,500 by U.S. District Judge Leigh Martin May on November 27, 2018. Holt pleaded guilty to these charges on June 6 and August 28, 2018.
- Clifton Curtis Lee, a/k/a Cliff, 43, of Lithonia, Georgia, a letter carrier assigned to the Sandy Springs Post Office was sentenced to three years, 10 months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,800 by U.S. District Judge Steve C. Jones on June 18, 2018. Lee pleaded guilty to these charges on February 28, 2018.
- Shakeed Anilah Magee, 41, of College Park, Georgia, a letter carrier assigned to the West End Branch of the Atlanta Post Office was sentenced to five years in prison to be followed by four years of supervised release, and ordered to pay restitution in the amount of $3,000 by U.S. District Judge Leigh Martin May on February 13, 2018. Magee pleaded guilty to these charges on November 14, 2017.
- Horace Manson, 41, of Roswell, Georgia, a letter carrier assigned to the West End Branch of the Atlanta Post Office was sentenced to three years, 10 months in prison to be followed by two years of supervised release, and ordered to pay restitution in the amount of $3,000 by U.S. District Judge Leigh Martin May on April 17, 2018. Manson pleaded guilty to these charges on January 29, 2018.
- Olivia Marita Moore, 26, of Atlanta, Georgia, a letter carrier assigned to the Old National Branch of the Riverdale Post Office was sentenced to five years, 10 months in prison to be followed by four years of supervised release, and ordered to pay restitution in the amount of $4,500 by U.S. District Judge Leigh Martin May on July 16, 2018. Moore pleaded guilty to these charges on January 5, 2018.
- Eddie Nash, 64, of Decatur, Georgia, a letter carrier assigned to the West End Branch of the Atlanta Post Office was sentenced to five years in prison to be followed by four years of supervised release, and ordered to pay restitution in the amount of $3,000 by U.S. District Judge Leigh Martin May on July 17, 2018. Nash pleaded guilty to these charges on December 14, 2017.
- Jeffrey A. Pearson, 61, of Austell, Georgia, a letter carrier assigned to the Decatur Post Office was sentenced to four years, nine months in prison to be followed by four years of supervised release, and ordered to pay restitution in the amount of $2,000 by U.S. District Judge Eleanor L. Ross on May 22, 2018. Pearson pleaded guilty to these charges on February 1, 2018.
- Rodney Antwain Salter, 34, of Jonesboro, Georgia, a letter carrier assigned to the Martech Branch of the Atlanta Post Office was sentenced to five years in prison to be followed by four years of supervised release, and ordered to pay restitution in the amount of $3,000 by U.S. District Judge Leigh Martin May on May 17, 2018. Salter pleaded guilty to these charges on December 20, 2017.
- Frank Webb, 41, of Lithonia, Georgia, a letter carrier assigned to the Central City Branch of the Atlanta Post Office was sentenced to three years, four months in prison to be followed by two years of supervised release, and ordered to pay forfeiture in the amount of $3,000 by U.S. District Judge Leigh Martin May on May 16, 2018. Webb pleaded guilty to these charges on January 30, 2018.
- Katrina Nicole Wilson, a/k/a Trina, 39, of Fairburn, Georgia, a letter carrier assigned to the West End Branch of the Atlanta Post Office was sentenced to eight years in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $9,500 by U.S. District Judge Leigh Martin May on August 27, 2018. Wilson pleaded guilty to these charges on April 12, 2018.
- Harvel Donta Young, a/k/a Dante, 41, of Atlanta, Georgia a letter carrier assigned to the Westside Annex Branch of the Marietta Post Office was sentenced to five years in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $1,800 by U.S. District Judge Steve C. Jones on August 14, 2018. Young pleaded guilty to these charges on May 1, 2018.
Additionally, Dexter Bernard Frazier, a/k/a Dec, 57, of Fairburn, Georgia, who was not a postal employee but participated in some of the package deliveries by connecting the confidential source with postal workers, was sentenced to nine years in prison to be followed by 10 years of supervised release, and ordered to pay restitution in the amount of $10,700 by U.S. District Judge Steve C. Jones on June 13, 2018. Frazier pleaded guilty to these charges on March 6, 2018.
This case was investigated by the Federal Bureau of Investigation, DeKalb County District Attorney’s Office, and U.S. Postal Service Office of Inspector General.
Assistant U.S Attorneys Garrett L. Bradford and Jill E. Steinberg, Deputy Chief of the Criminal Division, prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
- Cydra Rochelle Alexander, 33, of Riverdale, Georgia, a letter carrier assigned to the Ralph McGill Carrier Annex and Central City Branch of the Atlanta Post Office was sentenced to five years, 10 months in prison to be followed by four years of supervised release, and ordered to pay forfeiture in the amount of $4,500 by U.S. District Judge Leigh Martin May on February 22, 2018. Alexander pleaded guilty to these charges on November 27, 2017.
Two Men Charged with Four Robberies of Convenience Stores in QueensRead the Press Release
A criminal complaint was filed today in federal court in Brooklyn charging Scott Brack and Elgin Brack with the armed robberies of four convenience stores in Queens. Elgin Brack was also charged with brandishing a firearm in furtherance of a crime of violence and discharging a firearm in furtherance of a crime of violence. Both defendants were arrested yesterday evening, made their initial appearances this afternoon before United States Magistrate Judge Steven M. Gold and were ordered detained.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the arrests.
“As alleged, the defendants struck four all-night commercial businesses in Queens in a span of fewer than three hours, including a Duane Reade store in Woodside where an employee was callously shot in the head simply for resisting the robbery,” stated United States Attorney Donoghue. “While most people slept through this night of terror, members of the ATF/NYPD Joint Robbery Task Force were working tirelessly to identify and quickly apprehend the perpetrators who will now face justice for their multiple crimes.”
“The aforementioned individuals are alleged to have committed brazen acts of violence terrorizing business owners in their community,” stated ATF Special Agent-in-Charge Benedict. “In one of their acts, a store manager was shot during a robbery attempt. If not for the work of multiple NYPD units and the ATF/NYPD Joint Robbery Task Force, they would be out on the streets continuing to reign terror on the innocent. ATF will continue to work with our partners to send a strong message to individuals that seek to spread violence in their community that all law enforcement resources will be used to apprehend and prosecute them for their violent actions. I would like to thank the United States Attorney’s office for their work in prosecuting this case.”
“New York City has achieved historic reductions in crime over the past two decades, but some outliers continue to traffic in violence and fear,” stated NYPD Commissioner O’Neill. “That is why the men and women of the NYPD must continue to be the very best at what we do: fighting crime and keeping people safe. Today’s charges highlight their exemplary work, and I commend the ATF investigators who work daily with our detectives on the Strategic Pattern Armed Robbery and Technical Apprehensions Task Force, or SPARTA. By so efficiently pursuing and strengthening high-profile armed-robbery cases like this, we – together with the U.S. Attorney’s Office for the Eastern District and all of our law-enforcement partners – are making the safest large city in the nation even safer.”
As detailed in the complaint, on November 26, 2018, at approximately 3:36 a.m., Elgin Brack entered a Duane Reade store at 60-02 Roosevelt Avenue in Woodside and pointed a gun at the store clerk. Brack then moved behind the store counter, attempted to force the clerk to turn over money and shot the clerk in the hand and the head as he resisted. Brack fled the Duane Reade and together with Scott Brack, traveled by car to a 7-Eleven store located at 50-92 Northern Boulevard in Long Island City where, at approximately 3:58 a.m., Elgin Brack demanded money at gunpoint and took $300 from an employee. Next, the defendants drove to a Rite Aid store located at 33-01 30th Avenue in Astoria at approximately 4:20 a.m., where Elgin Brack approached a store clerk and asked to purchase chewing gum. When the store clerk opened the cash register, Brack pointed a gun and demanded money. The store clerk handed over $802. Immediately outside the Rite Aid store, video surveillance captured Scott Brack discarding an item consistent in size and shape with the cash register tray taken from the prior 7-Eleven armed robbery. Finally, at approximately 5:45 a.m., Elgin Brack entered a second Rite Aid store located at 115-10 Merrick Boulevard in Jamaica, approached a store clerk, pointed a gun and demanded money. The store clerk complied and gave Elgin Brack $200.
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each defendant faces a minimum of seven years in prison.
Assistant United States Attorney Phil Selden is in charge of the prosecution.
The Defendant:
SCOTT BRACK
Age: 50
Bronx, New YorkELGIN BRACK
Age: 22
Brooklyn, New YorkTwo International Cybercriminal Rings Dismantled and Eight Defendants Indicted for Causing Tens of Millions of Dollars in Losses in Digital Advertising FraudRead the Press Release
A 13-count indictment was unsealed today in federal court in Brooklyn charging Aleksandr Zhukov, Boris Timokhin, Mikhail Andreev, Denis Avdeev, Dmitry Novikov, Sergey Ovsyannikov, Aleksandr Isaev and Yevgeniy Timchenko with criminal violations for their involvement in perpetrating widespread digital advertising fraud. The charges include wire fraud, computer intrusion, aggravated identity theft and money laundering. Ovsyannikov was arrested last month in Malaysia; Zhukov was arrested earlier this month in Bulgaria; and Timchenko was arrested earlier this month in Estonia, all pursuant to provisional arrest warrants issued at the request of the United States. They await extradition. The remaining defendants are at large.
Also unsealed today in federal court in Brooklyn were seizure warrants authorizing the FBI to take control of 31 internet domains, and search warrants authorizing the FBI to take information from 89 computer servers, that were all part of the infrastructure for botnets engaged in digital advertising fraud activity. The FBI, working with private sector partners, redirected the internet traffic going to the domains (an action known as “sinkholing”) in order to disrupt and dismantle these botnets.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD) announced the charges and domain seizures.
“As alleged in court filings, the defendants in this case used sophisticated computer programming and infrastructure around the world to exploit the digital advertising industry through fraud,” stated United States Attorney Donoghue. “This case sends a powerful message that this Office, together with our law enforcement partners, will use all our available resources to target and dismantle these costly schemes and bring their perpetrators to justice, wherever they are.” Mr. Donoghue thanked the FBI Cyber Division for its extraordinary efforts in carrying out the multi-year investigation.
“As alleged, these individuals built complex, fraudulent digital advertising infrastructure for the express purpose of misleading and defrauding companies who believed they were acting in good faith, and costing them millions of dollars. This kind of exploitation undermines confidence in the system, on the part of both companies and their customers,” stated FBI Assistant Director-in-Charge Sweeney. “Thanks to the hard work of our legal attachés and law enforcement partners overseas, with the cooperation of our international and U.S.-based private sector partners, the defendants will face justice for their alleged crimes.”
“This investigation highlights public- and private-sector collaboration across the globe, and again confirms the absolute necessity for interagency information-sharing. Criminals – especially those operating via the internet – do not concern themselves with jurisdictional boundaries, so it is critical that the law-enforcement community works together to achieve our shared goal of protecting the people we serve,” stated NYPD Commissioner O’Neill. “I thank and commend the U.S. Attorney for the Eastern District, and all the investigators with the FBI Cyber Division and the NYPD. Together, we are ensuring that the vital systems and technologies of our economy are kept safe.”
The Criminal Scheme
The internet is, in large part, freely available to users worldwide because it runs on digital advertising: website owners display advertisements on their sites and are compensated for doing so by intermediaries representing businesses seeking to advertise their goods and services to real human customers. In general, digital advertising revenue is based on how many users click or view the ads on those websites. As alleged in court filings, the defendants in this case represented to others that they ran legitimate companies that delivered advertisements to real human internet users accessing real internet webpages. In fact, the defendants faked both the users and the webpages: they programmed computers they controlled to load advertisements on fabricated webpages, via an automated program, in order to fraudulently obtain digital advertising revenue.
The Datacenter-Based Scheme (Methbot)
As alleged in the indictment, between September 2014 and December 2016, Zhukov, Timokhin, Andreev, Avdeev and Novikov operated a purported advertising network (“Ad Network #1”) and, with Ovsyannikov’s assistance, carried out a digital ad fraud scheme. Ad Network #1 had business arrangements with other advertising networks whereby it received payments in return for placing advertising placeholders (“ad tags”) on websites. Rather than place these ad tags on real publishers’ websites, however, Ad Network #1 rented more than 1,900 computer servers housed in commercial datacenters in Dallas, Texas and elsewhere, and used those datacenter servers to load ads on fabricated websites, “spoofing” more than 5,000 domains. To create the illusion that real human internet users were viewing the advertisements loaded onto these fabricated websites, the defendants programmed the datacenter servers to simulate the internet activity of human internet users: browsing the internet through a fake browser, using a fake mouse to move around and scroll down a webpage, starting and stopping a video player midway, and falsely appearing to be signed into Facebook. Furthermore, the defendants leased more than 650,000 Internet Protocol (“IP”) addresses, assigned multiple IP addresses to each datacenter server, and then fraudulently registered those IP addresses to make it appear that that the datacenter servers were residential computers belonging to individual human internet users who were subscribed to various residential internet service providers. As a result of this scheme, Ad Network #1 falsified billions of ad views and caused businesses to pay more than $7 million for ads that were never actually viewed by real human internet users.
The Botnet-Based Scheme (3ve.2 Template A)
As also alleged in the indictment, between December 2015 and October 2018, Ovsyannikov, Timchenko and Isaev operated a purported advertising network (“Ad Network #2”) and carried out another digital ad fraud scheme. In this scheme, the defendants used a global “botnet”¾a network of malware-infected computers operated without the true owner’s knowledge or consent¾to perpetrate their fraud. The defendants developed an intricate infrastructure of command-and-control servers to direct and monitor the infected computers and check whether a particular infected computer had been flagged by cybersecurity companies as associated with fraud. By using this infrastructure, the defendants accessed more than 1.7 million infected computers, belonging to ordinary individuals and businesses in the United States and elsewhere, and used hidden browsers on those infected computers to download fabricated webpages and load ads onto those fabricated webpages. Meanwhile, the owners of the infected computers were unaware that this process was running in the background on their computers. As a result of this scheme, Ad Network #2 falsified billions of ad views and caused businesses to pay more than $29 million for ads that were never actually viewed by real human internet users.
The Botnet Takedown
Following the arrest of Ovsyannikov by Malaysian authorities, U.S. law enforcement authorities, in conjunction with various private sector companies, began the process of dismantling the criminal cyber infrastructure utilized in the botnet-based scheme, which involved computers infected with malicious software known in the cybersecurity community as “Kovter.” The FBI executed seizure warrants to sinkhole 23 internet domains used to further the charged botnet-based scheme or otherwise used to further the Kovter botnet. The FBI also executed search warrants at 11 different U.S. server providers for 89 servers related to the charged botnet-based scheme or Kovter.
In addition, as part of its investigation, the FBI discovered an additional cybercrime infrastructure committing digital advertising fraud through the use of datacenter servers located in Germany and a botnet of computers in the United States infected with malicious software known in the cybersecurity community as “Boaxxe.” The FBI executed seizure warrants to sinkhole eight domains used to further this scheme and thereby disrupt yet another botnet engaged in digital advertising fraud.
Finally, the United States, with the assistance of its foreign partners, executed seizure warrants for multiple international bank accounts in Switzerland and elsewhere that were associated with the schemes.
The charges in the indictment are merely allegations and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Saritha Komatireddy, Alexander F. Mindlin, Michael T. Keilty and Karin K. Orenstein are in charge of the prosecution.
The Justice Department’s Office of International Affairs, the FBI’s Legal Attachés abroad and foreign authorities in multiple countries provided critical assistance in this case. The Office extends its appreciation to the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian National Central Bureau of Interpol, the Supreme Cassation Prosecution Office of Bulgaria, the Regional Prosecution Office of Varna, the Cybercrime Department of the Bulgarian General Directorate for Combating Organized Crime, the Bulgarian Ministry of Interior Regional Directorate of Varna, the Office of the Prosecutor General of Estonia, the Estonian Police and Border Guard Board and the FBI’s Legal Attaché Offices in Malaysia, Bulgaria and Estonia for their assistance in apprehending defendants in this case. The Office also extends its appreciation to the German Bundeskriminalamt Cybercrime Intelligence Operations Department and Polizei Sachsen Polizeidirektion Zwickau Criminal Investigation Department, the Dutch National Police, the United Kingdom National Crime Agency, the French Police Cybercrime Central Bureau, the Swiss Federal Office of Justice, FBI’s Legal Attaché Offices in those countries, and Europol for their assistance in various aspects of the investigation and botnet takedown.
Multiple private sector organizations also provided critical assistance in this case. The Office extends its appreciation to White Ops, Inc. and Google LLC for their assistance in the investigation and botnet takedown. The Office also extends its appreciation to Proofpoint, Inc, Fox IT B.V., Microsoft Corporation, ESET, Trend Micro Inc., Symantec Corporation, CenturyLink, Inc, F-Secure Corporation, Malwarebytes, MediaMath, the National Cyber-Forensics and Training Alliance and The Shadowserver Foundation for their assistance in the botnet takedown.
For technical details on the malware and botnets referenced in this case, please see US-CERT Alert TA18-331A: https://www.us-cert.gov/ncas/alerts/TA18-331A
The Defendants:
ALEKSANDR ZHUKOV
Age: 38
Russian FederationBORIS TIMOKHIN
Age: 39
Russian FederationMIKHAIL ANDREEV
Age: 34
Russian Federation and UkraineDENIS AVDEEV
Age: 40
Russian FederationDMITRY NOVIKOV
Age: Unknown
Russian FederationSERGEY OVSYANNIKOV
Age: 30
Republic of KazakhstanALEKSANDR ISAEV
Age: 31
Russian FederationYEVGENIY TIMCHENKO
Age: 30
Republic of KazakhstanE.D.N.Y. Docket No. 18-CR-633 (ERK)
Two Greek Shipping Companies Plead Guilty to Illegally Discharging Oil into Texas Port WatersRead the Press Release
Two Greek shipping companies, Avin International LTD, and Nicos I.V. Special Maritime Enterprises, pleaded guilty yesterday in federal court in Beaumont, Texas, to charges stemming from several discharges of oil into the waters of Texas ports by the oil tanker M/T Nicos I.V., announced Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division and United States Attorney Joseph D. Brown for the Eastern District of Texas.
Avin International was the operator and Nicos I.V. Special Maritime Enterprises was the owner of the Nicos I.V., which is a Greek-flagged vessel. The Master of the Nicos I.V., Rafail-Thomas Tsoumakos, and the vessel’s Chief Officer, Alexios Thomopoulos, also pleaded guilty to making material false statements to members of the United States Coast Guard during the investigation into the discharges.
Both companies pleaded guilty to one count of obstruction of an agency proceeding, as well as one count of failure to report discharge of oil under the Clean Water Act, and three counts of negligent discharge of oil under the Clean Water Act. Under the plea agreement, the companies will pay a $4 million criminal fine and serve a four-year term of probation, during which vessels operated by the companies will be required to implement an environmental compliance plan, including inspections by an independent auditor. Mr. Tsoumakos and Mr. Thomopoulos each pleaded guilty to one count of making a material false statement and face up to five years in prison when sentenced. A sentencing date has not been set.
“The international ports of Houston and Port Arthur are no one’s dumping ground,” said Assistant Attorney General Clark. “Vessel operators coming to the United States must not foul American waterways. Those who knowingly discharge their waste and lie to the Coast Guard to dodge their legal responsibilities under federal law are on notice that our investigators and prosecutors stand ready to hold them accountable.”
“We take the violation of our environmental protection laws seriously,” said U.S. Attorney Joseph D. Brown. “We expect shipping and oil companies to do the same. They can do terrible damage to our coastlines and wildlife, and we all have to make sure that does not happen.”
“The Coast Guard Investigative Service will continue to vigorously investigate and hold accountable individuals and corporations who illegally discharge pollutants into the marine environment,” said Brian Jeanfreau, Special Agent-In-Charge of the U.S. Coast Guard Investigative Service, Gulf Region.
According to documents filed in court, the Nicos I.V. was equipped with a segregated ballast system, a connected series of tanks used to control the trim and list of the vessel by taking on or discharging water, the latter involving an operation called deballasting. At some point prior to July 6, 2017, the ballast system of the Nicos I.V. became contaminated with oil and that oil was discharged twice from the vessel into the Port of Houston on July 6 and July 7, 2017, during deballasting operations. Both Tsoumakos and Thomopoulos were informed of the discharges of oil in the Port of Houston. Tsoumakos failed to report the discharges as required under the Clean Water Act. Neither discharge was recorded in the vessel’s oil record book, as required under MARPOL and the Act to Prevent Pollution from Ships.
After leaving the Port of Houston, en route to Port Arthur, Texas, the deck crew was instructed to open the ballast tanks, and oil was observed in several of the tanks. After arriving in Port Arthur, additional oil began bubbling up next to the vessel, causing a report to the U.S. Coast Guard. During the ensuing investigation, both Tsoumakos and Thomopoulos lied to the Coast Guard, stating, among other things, that they had not been aware of the oil in the ballast system until after the discharge in Port Arthur, and that they believed that the oil in the ballast tanks had entered them when the vessel took on ballast water in Port Arthur.
The case was investigated by the U.S. Coast Guard Investigative Service with assistance from the U.S. Coast Guard Sector MSU Port Arthur, which conducted the inspection of the ship. The prosecution was handled by Trial Attorney Lauren Steele of the Environmental Crimes Section of the U.S. Department of Justice and Assistant United States Attorney Joseph Batte of the Eastern District of Texas.
Two Additional Mississippi Real Estate Investors Plead Guilty to Conspiracy to Rig Bids at Public Foreclosure AuctionsRead the Press Release
Mississippi real estate investors Christopher Vaughan and Jon Gregg Goodhart Jr. pleaded guilty today for their roles in a conspiracy to rig bids at public real estate foreclosure auctions in Mississippi, the Department of Justice announced.
Including Vaughan and Goodhart, nine real estate investors have entered guilty pleas in this conspiracy. Separate felony charges were filed against Vaughan on November 9, 2018, and Goodhart on November 19, 2018, in the U.S. District Court for the Southern District of Mississippi.
“The conspirators worked together to cheat the system and thereby increased the financial losses on these foreclosed homes,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Justice Department will continue to work with our partners to hold violators of the antitrust laws accountable.”
“These types of crimes affect all Americans, because when individuals rig bids at auctions, it ultimately damages our economy and hurts individuals,” said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. “We want to send a clear message to those participating in this type of corruption: the FBI and Department of Justice will investigate and prosecute anyone betraying the trust of our country’s economic foundation.”
According to court documents, from at least as early as June 9, 2011, through at least as late as February 8, 2017, Vaughan conspired with others not to bid against one another for selected public real estate foreclosure auctions in the Southern District of Mississippi. Goodhart participated in the conspiracy from as early as August 20, 2009, through at least as late as December 11, 2014. Co-conspirators made and received payoffs in exchange for their agreement not to bid.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.
The investigation is being conducted by Antitrust Division attorneys in the Washington Criminal II Section and the FBI’s Gulfport Resident Agency, with the assistance of the U.S. Attorney’s Office for the Southern District of Mississippi. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact Antitrust Division prosecutors in the Washington Criminal II Section at 202-598-4000, or visit https://www.justice.gov/atr/report-violations.
Three Convicted, in Separate Cases, of Distributing Fentanyl that Resulted in a Fatal OverdoseRead the Press Release
LEXINGTON, Ky. – Defendants, in three separate indictments, have entered guilty pleas to distributing fentanyl that resulted in a death. In one case, Kloud Logan Jones, 27, of Mt. Sterling, Ky., pleaded guilty on October 19, 2018. Jones admitted that on November 23, 2017, he distributed the lethal drug to an individual identified as R.A.S., while both were inmates at the Montgomery County Regional Jail. Video surveillance from the jail captured the incident. The Montgomery County Sheriff’s Department and the Drug Enforcement Administration (DEA) jointly investigated the death, which led to federal charges.
In a separate case, Garry Sean Ramone Drake, Jr, 26, of Lexington, pleaded guilty on November 26, 2018, to distribution of fentanyl resulting in the death of an individual identified as M.R., on November 30, 2017, in Fayette County. Drake is the second individual convicted of distribution resulting in M.R.’s death. Phillip Clayton Jennings, 23, also of Lexington, previously entered a guilty plea to the same charge. Proof gathered during the investigation showed that both defendants were in the chain of distribution of the fentanyl mixture that led to the death. The Lexington Police Department and the DEA jointly investigated the death, which led to federal charges.
All three defendants face a mandatory minimum sentence of 20 years and a maximum sentence of life imprisonment. Sentencing for each of the defendants will occur in the United States District Courthouse, in Lexington, before the United States District Judge Danny C. Reeves.
“The distribution of fentanyl and other dangerous drugs is devastating our community with addiction and death,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “These three convictions demonstrate law enforcement’s continuing commitment to thoroughly investigate and prosecute drug distribution that results in an overdose. Each of these defendants will be facing a lengthy sentence of imprisonment, based on their decision to distribute fentanyl. Their conduct resulted in a death and the loss of their freedom is now the consequence.”
United States Attorney Duncan; Darrell Christopher Evans, Special Agent in Charge, DEA Louisville; Fred Shortridge, Montgomery County Sheriff; and Lawrence Weathers, Chief of Police, Lexington-Fayette County Division of Police, jointly announced the convictions. Assistant United States Attorney Todd Bradbury prosecuted the cases on behalf of the United States.
Three Aliens Indicted on Multiple Immigration ViolationsRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging BELARMINO LORENZO-LOPEZ, age 25, of Guatemala, with possession of unlawfully obtained documents, aggravated identity theft, and illegal reentry, OBISPO EULOGIO PEREZ-CABRERA, age 29, of Guatemala, with false attestation, possession of unlawfully obtained document, false claim of United States citizenship with intent to obtain a State benefit and service, and failure to register and be fingerprinted, and GUSTAVO DEJESUS SERPAS-VASQUEZ, age 41, of El Salvador, with illegal reentry.
If convicted of possession of unlawfully obtained documents, aggravated identity theft, and illegal reentry of a deported alien, LORENZO-LOPEZ, found in Duplin County, would face maximum penalties of fourteen years’ imprisonment, a $750,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of false attestation, possession of unlawfully obtained document, false claim of United States citizenship with intent to obtain a State benefit and service, and failure to register and be fingerprinted, PEREZ-CABRERA, found in Wayne County, would face maximum penalties of twenty years’ and six months imprisonment, a $751,000 fine, and a term of supervised release following any term of imprisonment.
SERPAS-VASQUEZ, found in Wake County, is alleged to have been previously deported subsequent to a felony conviction (illegal reentry by a convicted felon). Therefore, if convicted, he would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations under the Document Benefit Fraud Task Force.
The Last of 21 Latin King Members and Associates Sentenced to 27 Years in Prison for Racketeering Conspiracy Involving Two Murders in IndianaRead the Press Release
A Cedar Lake, Indiana Latin Kings gang member, was sentenced to 324 months in prison followed by five years of supervised release after pleading guilty to conspiracy to commit racketeering activity and conspiracy to possess with intent to distribute cocaine and marijuana for his role and participation in the Latin Kings street gang, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Thomas L Kirsch II for the Northern District of Indiana.
Sergio M. Robles aka Checko, 30, was sentenced by U.S. District Court Judge Jon E. DeGuilio. At sentencing, Robles was held responsible for participating in the December 2003 murder of Jonathan Zimmerman in Hammond, Indiana, and the May 2008 murder of Jose Cortez in East Chicago, Indiana. The Latin Kings suspected Zimmerman was involved in a drug transaction with counterfeit currency. Accordingly, Zimmerman was shot and killed by a co-defendant. Jose Cortez was shot to death by another co-defendant because the Latin Kings believed Cortez was a member of a rival street gang. According to documents in this case, Robles possessed a firearm in furtherance of the gang’s activities and was involved in a conspiracy to distribute 150 kilograms of cocaine and 1,000 kilograms of marijuana.
“Today’s 27-year sentence demonstrates that our focused efforts on investigating and prosecuting gang members committing violent acts on the streets of Northern Indiana, past or present, is long from over,” said U.S. Attorney Kirsch. “Just last week we had a member receive a 28-year sentence. Our community and law enforcement partnerships are some of the best and we will continue investigating and prosecuting these type of cases.”
According to the third superseding indictment returned on Nov. 16, 2011, the Latin Kings is a nationwide gang that originated in Chicago and has branched out in Indiana and throughout the United States, including to Texas. The Latin Kings is a well-organized street gang that has specific leadership and is comprised of regions that include multiple chapters. The third superseding indictment filed in this case alleges that the Latin Kings gang was responsible for at least 19 murders in the Chicago/Northwest Indiana area and Big Spring, Texas.
In addition to Robles, 19 other co-defendants, including two former Chicago police officers, entered guilty pleas and were previously sentenced for their roles in the racketeering conspiracy. One co-defendant, Martin Anaya, was convicted of racketeering and drug conspiracies at trial and subsequently sentenced to 30 years in prison.
This case was investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; the Griffith Police Department; the Chicago Police Department; the East Chicago Police Department; the Hammond Police Department; the Highland Police Department; the Houston Police Department and the Lubbock Police Department. This case was prosecuted by the Department of Justice Criminal Division’s Organized Crime and Gang Section (OCGS) and the U.S. Attorney’s Office for the Northern District of Indiana. Assistant U.S. Attorneys Joseph A. Cooley (formally a Trial Attorney with OCGS) and David J. Nozick prosecuted this case.
The Last of 21 Latin King Members and Associates Sentenced to 27 Years in Prison for Racketeering Conspiracy Involving Two Murders in IndianaRead the Press Release
WASHINGTON - A Cedar Lake, Indiana Latin Kings gang member, was sentenced to 324 months in prison followed by five years of supervised release after pleading guilty to conspiracy to commit racketeering activity and conspiracy to possess with intent to distribute cocaine and marijuana for his role and participation in the Latin Kings street gang, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Thomas L Kirsch II for the Northern District of Indiana.
Sergio M. Robles aka Checko, 30, was sentenced by U.S. District Court Judge Jon E. DeGuilio. At sentencing, Robles was held responsible for participating in the December 2003 murder of Jonathan Zimmerman in Hammond, Indiana, and the May 2008 murder of Jose Cortez in East Chicago, Indiana. The Latin Kings suspected Zimmerman was involved in a drug transaction with counterfeit currency. Accordingly, Zimmerman was shot and killed by a co-defendant. Jose Cortez was shot to death by another co-defendant because the Latin Kings believed Cortez was a member of a rival street gang. According to documents in this case, Robles possessed a firearm in furtherance of the gang’s activities and was involved in a conspiracy to distribute 150 kilograms of cocaine and 1,000 kilograms of marijuana.
“Today’s 27-year sentence demonstrates that our focused efforts on investigating and prosecuting gang members committing violent acts on the streets of Northern Indiana, past or present, is long from over,” said U.S. Attorney Kirsch. “Just last week we had a member receive a 28-year sentence. Our community and law enforcement partnerships are some of the best and we will continue investigating and prosecuting these type of cases.”
According to the third superseding indictment returned on Nov. 16, 2011, the Latin Kings is a nationwide gang that originated in Chicago and has branched out in Indiana and throughout the United States, including to Texas. The Latin Kings is a well-organized street gang that has specific leadership and is comprised of regions that include multiple chapters. The third superseding indictment filed in this case alleges that the Latin Kings gang was responsible for at least 19 murders in the Chicago/Northwest Indiana area and Big Spring, Texas.
In addition to Robles, 19 other co-defendants, including two former Chicago police officers, entered guilty pleas and were previously sentenced for their roles in the racketeering conspiracy. One co-defendant, Martin Anaya, was convicted of racketeering and drug conspiracies at trial and subsequently sentenced to 30 years in prison.
This case was investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; the Griffith Police Department; the Chicago Police Department; the East Chicago Police Department; the Hammond Police Department; the Highland Police Department; the Houston Police Department and the Lubbock Police Department. This case was prosecuted by the Department of Justice Criminal Division’s Organized Crime and Gang Section (OCGS) and the U.S. Attorney’s Office for the Northern District of Indiana. Assistant U.S. Attorneys Joseph A. Cooley (formally a Trial Attorney with OCGS) and David J. Nozick prosecuted this case.
# # #