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26 November 2018
Mexican National Pleads Guilty to 15-Pound Methamphetamine Deal in Kern CountyRead the Press Release
FRESNO, Calif. — Oscar Ivan Salazar-Avalos, 28, a citizen of Mexico, pleaded guilty today to conspiring to distribute and possess with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Salazar and his co-defendant Jose Manuel Sotelo-Mendoza, 26, of Ceres, delivered 15 pounds of methamphetamine to an undercover officer in Delano after Salazar negotiated with the officer to sell the drug for $3,400 per pound. In pleading guilty, Salazar acknowledged that he and Sotelo had met his source of supply in Castaic in the northern part of Los Angeles County to obtain the 15 pounds of methamphetamine. In addition, Salazar indicated that they intended to make $51,000 on the deal.
Salazar is scheduled for sentencing on February 19, 2019, before U.S. District Judge Dale A. Drozd. Salazar faces a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges are pending against Sotelo. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Central Valley High Intensity Drug Trafficking Area Task Force, consisting of law enforcement officers of Homeland Security Investigations, California Highway Patrol, Bureau of Investigation of the California Department of Justice, Fresno Police Department, and Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Long Island Woman Pleads Guilty to Providing Material Support to ISISRead the Press Release
Earlier today, in federal court in Central Islip, Zoobia Shahnaz pleaded guilty to providing material support to a foreign terrorist organization, the Islamic State of Iraq and al-Sham (“ISIS”), which has been designated by the U.S. Secretary of State as a foreign terrorist organization. As part of her plea agreement with the government, Shahnaz admitted defrauding numerous financial institutions, and then laundering and transferring the stolen proceeds out of the country with the intent to support a specified unlawful activity, namely the provision of material support to ISIS, after which she attempted to leave the United States and travel to Syria. When sentenced, Shahnaz faces up to 20 years in prison, as well as restitution, criminal forfeiture and a fine. The guilty plea was entered before United States District Judge Joanna Seybert.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John C. Demers, Assistant Attorney General for National Security, 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 guilty plea.
“With today’s guilty plea, Shahnaz, a resident of our district, admitted to engaging in a complex scheme using cryptocurrencies designed to put thousands of dollars into the coffers of ISIS, a foreign terrorist organization dedicated to murder and destruction,” stated United States Attorney Donoghue. “Counterterrorism is the highest priority of the Department of Justice and our law enforcement partners, and together we will continue to hold accountable those who abet terrorists seeking to harm the United States and its allies.”
Mr. Demers and Mr. Donoghue expressed their grateful appreciation to the FBI’s Joint Terrorism Task Force (JTTF), which comprises a number of federal, state and local agencies from the region.
“In the interest of empowering and enriching a terrorist organization whose aim is to harm America, Zoobia Shahnaz turned her back on her country and her fellow citizens,” stated FBI Assistant Director-in-Charge Sweeney. “Thanks to the diligent work of the FBI New York Joint Terrorism Task Force, her crimes were uncovered, and she was unable to succeed in her ultimate goal of traveling to Syria to join ISIS. This conviction sends a message to anyone who seeks to manipulate our financial systems to provide support to our adversaries: you too will be discovered, investigated, and brought to justice.”
According to court filings and facts presented at the guilty plea proceeding, between March 2017 and the date of her attempted travel to Syria on July 31, 2017, Shahnaz engaged in a bank fraud scheme to raise money for ISIS. In furtherance of that scheme, she obtained a loan for approximately $22,500 through materially false representations, used more than a dozen fraudulently obtained credit cards to purchase approximately $62,000 in Bitcoin and other cryptocurrencies online and then wired over $150,000 to individuals and shell entities in Pakistan, China and Turkey that were fronts for ISIS.
At the same time, Shahnaz accessed ISIS propaganda at various violent jihad-related websites and message boards, and social media and messaging pages of known ISIS recruiters, facilitators and financiers. She also searched the internet for information to facilitate her travel into Syria, but ultimately was intercepted by the JTTF at John F. Kennedy International Airport.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Artie McConnell of the Eastern District of New York and Trial Attorney Joseph Attias of the National Security Division’s Counterterrorism Section are in charge of the prosecution.
The Defendant:
Zoobia Shahnaz
Age: 27
Brentwood, NYE.D.N.Y. Docket No. 17-CR-690 (JS)
Lexington Therapy Practice Agrees to Pay $200,000 to Resolve Allegations That It Submitted False Claims to Medicare and MedicaidRead the Press Release
COLUMBIA, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Vital Energy Occupational Therapy and Wellness Center, LLC, headquartered in Lexington, South Carolina, has agreed to pay $200,000 to resolve allegations that it knowingly submitted false or fraudulent claims to Medicare and Medicaid for physical and occupational therapy services.
The settlement announced today resolves allegations that Vital Energy violated federal law from November 1, 2013, through April 30, 2016, by submitting bills for individual therapy services when group therapy services were actually provided, and by submitting bills for therapy services using former employees’ names and billing numbers when those former employees did not actually provide the therapy services. Vital Energy denies these allegations.
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to share in any recovery. As part of today’s resolution, the whistleblower will receive $36,000.
“The False Claims Act exists to protect taxpayer dollars from waste, fraud, and abuse,” said U.S. Attorney Lydon. “And when health care providers fail to follow the rules, the public bears the cost. It is through settlements like these that we recover those costs and discourage fraudulent and reckless billing.”
The settlement was the result of an investigation by the United States Attorney’s Office, with support from the Department of Health and Human Services and the South Carolina Attorney General’s Office Medicaid Fraud Control Unit. The settlement was handled by Assistant United States Attorney Brook B. Andrews of the Columbia office.
The case is captioned United States ex rel. Ashley C. Baggett, DPT v. Vital Energy Occupational Therapy and Wellness Center, LLC, d/b/a Vital Energy Wellness and Rehab Center, Case No. 3:16-cv-1692-DCC (D.S.C.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Hartford Man Charged with Federal Offenses Stemming from Drug-Related ShootingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Brian C. Turner, Special Agent in Charge of the Federal Bureau of Investigation, and Hartford Police Chief David Rosado, today announced that a federal grand jury in Hartford has returned a four-count indictment charging RANDY PARKMAN, 41, of Hartford, with robbery and firearm offenses.
The indictment was returned on November 6, 2018. Parkman appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and entered a plea of not guilty to the charges. He has been detained since his arrest on October 22, 2018.
As alleged in court documents, on May 22, 2018, Parkman shot and seriously wounded an individual during a robbery at 149 Wethersfield Avenue in Hartford. At the time, the location was being used as a “trap house” by a drug trafficking organization. Parkman was arrested at his residence on October 22, 2018. On that date, a search of the home revealed a Taurus, Model 444, .44 caliber revolver, which had been reported stolen from a motor vehicle in Hartford in August 2018.
It is alleged that Parkman’s criminal history includes numerous felony convictions for larceny, burglary and other offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Parkman with one count of interference with commerce by robbery, an offense that carries a maximum term of imprisonment of 20 years, and one count of possession and discharge of a firearm during and in relation to a crime of violence, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. The indictment also charges Parkman with one count of possession of ammunition by a convicted felon and one count of possession of a firearm by a convicted felon, offenses that carry a maximum term of imprisonment of 10 years on each count.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Harrison County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Lee Starkey, Jr., of Clarksburg, West Virginia, was sentenced today to 15 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Starkey, age 24, pled guilty to one count of “Unlawful Possession of a Firearm” in July 2018. Starkey, having been previously convicted of a felony, admitted to having a .22-caliber revolver in March 2018 in Harrison County.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Attorney General’s Office has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Attorney General’s Office announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia Probation Office investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Fulton Sex Offender Pleads Guilty to Transporting 13-year-old Victim to Missouri for SexRead the Press Release
JEFFERSON CITY, Mo. – A prior sex offender in Fulton, Mo., pleaded guilty in federal court today after his mother and grandmother transported a 13-year-old child victim from Alabama to engage in illegal sexual activity with him.
Michael James Collins, 21, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr. Collins, who was a resident at the Community Supervision Center in Fulton, was on probation at the time of the offense for a prior felony conviction for sexual misconduct involving a child.
According to today’s plea agreement, the Callaway County, Mo., Sheriff’s Department received information on Dec. 10, 2017, that a 13-year-old girl from Alabama was missing from her home. A cell phone ping placed the child victim at a residence in Fulton, where she was located and removed.
Collins admitted that he paid his grandmother $400 to go to Alabama to pick up the child victim, whom he met on a dating website in July 2017. Collins’s mother was with his grandmother when the child victim was picked up in Alabama and transported to Missouri. Collins’s grandmother and mother also transported the child victim between the Fulton residence and Collins’s residence at the Community Supervision Center when they were taking Collins back and forth to work.
Collins and the child victim communicated with each other from July to December 2017 via cell phone, Facebook Messenger and other apps, which was a violation of Collins’s probation. Collins accessed the internet using his cell phone as well as his mother’s cell phone.
Collins pleaded guilty today to transporting a minor under the age of 14 across state lines with the intent to engage in illegal sexual activity and to committing the felony offense while he was under the requirement to register as a sex offender.
Under federal statutes, Collins is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Callaway County, Mo., Sheriff’s Department, the Fulton, Mo., Police Department, the FBI, the Callaway County, Mo., Prosecutor’s Office and the Callaway County Children’s Division.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Fort Worth Man Guilty of Possessing Eastern Screech Owl in Eastern District of TexasRead the Press Release
TYLER, Texas – A 46-year-old Ft. Worth man has pleaded guilty to federal wildlife violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Jorge Fernando Mercado pleaded guilty to an Information charging him with unlawful possession of migratory birds today before U.S. Magistrate Judge John D. Love.
According to information presented in court, on Sep. 30, 2017 in Van Zandt County, Texas, Mercado, knowingly possessed, and then sold, a live Eastern Screech-Owl (Megascops asio) to another individual for $200.00. The Eastern Screech-Owl is a “migratory bird” which is protected by federal statute and international conventions. Mercado admitted that he knowingly possessed and sold the owl without a valid permit or authorization.
Under federal statutes, Mercado faces up to six months in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The owl was recovered and rehabilitated by U.S. Fish & Wildlife and has since been released back into the wild.
This case was investigated by Texas Parks and Wildlife and U.S. Fish and Wildlife Service and prosecuted by Assistant U.S. Attorney Jim Noble.
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Former Shelton Resident Who Embezzled $326K from Her Employer Sentenced to 33 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MIRIAM DUBAY, 66, of Purcellville, Virginia, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 33 months of imprisonment, followed by three years of supervised release, for embezzling more than $326,000 from her Connecticut employer.
According to court documents and statements made in court, Dubay, who formerly resided in Shelton, was the bookkeeper for a small, family-owned business in Shelton. Dubay was the only accounting person for the business, and she had access to the company’s bank accounts, check stock, accounting books and records, and petty cash. She also was responsible for depositing business checks and cash payments from customers into the company’s bank account.
From at least as early as April 2010 and continuing through October 2016, Dubay engaged in a scheme to defraud her employer by writing checks on company check stock made out to “cash” and either forging the signature on the checks by hand or by using a fraudulently obtained signature stamp. Dubay either deposited the checks into her personal bank account or cashed the checks at the bank where her employer maintained its business account. Dubay forged 168 separate checks totaling $239,851.68.
As part of this embezzlement scheme, Dubay also stole 103 customer cash payments, totaling $86,279, instead of depositing the cash into the business’s bank account.
Judge Underhill ordered Dubay to make full restitution to her victim employer.
On June 26, 2018, Dubay pleaded guilty to one count of wire fraud.
Dubay, who is released on a $20,000 bond, was ordered to report to prison on January 16, 2019.
This matter was investigated by the Shelton Police Department, the U.S. Secret Service and the Connecticut Financial Crimes Task Force. The case was prosecuted by Assistant U.S. Attorney Susan L. Wines.
Former Reservist Sentenced to More than 11 Years in Prison for Stealing Weapons from Army Reserve Center, Escaping from Prison & 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 Kellyville Indian Community Treasurer Pleads Guilty to EmbezzlementRead the Press Release
TULSA, Okla. A Kellyville woman was convicted today in U.S. District Court of embezzling in excess of $1,000 from an Indian tribal organization, announced U.S. Attorney Trent Shores.
Linda Kay Buchanan, 51, pleaded guilty to embezzling money from a Kellyville Indian Community general fund account from December 2014 to February 2018. The Kellyville Indian Community is a community of the Muscogee (Creek) Nation.
Investigators estimate Buchanan embezzled more than $40,000 from the general fund.
“Ms. Buchanan had a fiduciary responsibility in her position of financial oversight of bank accounts. She acted selfishly toward the community she was trusted to serve for more than three years,” said U.S. Attorney Trent Shores. “Embezzlement and financial corruption can be devastating with far reaching losses. It is through a strong collaborative partnership between the Muscogee (Creek) Nation Attorney General’s Office and the FBI that Ms. Buchanan was brought to justice.”
The Kellyville Indian Community discovered Buchanan’s illegal activity after they removed her as treasurer. When board members tried to access monies from the general account that Buchanan was formerly responsible for, they discovered there were insufficient funds. Investigators found that Buchanan had illegally written checks made out to herself and to cash for her own personal use during her time as treasurer.
U.S. District Chief Judge Gregory K. Frizzell scheduled sentencing for Feb. 27. Buchanan was released under conditions until sentencing and potentially faces a maximum penalty of five years in prison, a $250,000 fine, and three years of supervised release.
This case resulted from a joint investigation performed by the Muscogee (Creek) Nation Attorney General’s Office and the FBI and was prosecuted by Assistant U.S. Attorney Shannon Cozzoni.
Former Honduran Congressman and Brother of the Current President of Honduras Charged with Conspiring to Import Cocaine into the United States and Related Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Raymond Donovan, the Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that former Honduran congressman Juan Antonio Hernandez Alvarado, a/k/a “Tony Hernandez,” (“HERNANDEZ”) was charged in Manhattan federal court with conspiring to import cocaine into the United States, related weapons offenses involving the use and possession of machineguns and destructive devices, and making false statements to federal agents. HERNANDEZ is the brother of the current president of Honduras, Juan Orlando Hernandez. The case is assigned to U.S. District Judge P. Kevin Castel. HERNANDEZ was arrested on November 23, 2018, in Miami, Florida, and will appear this afternoon in Miami federal court before United States Magistrate Judge Jonathan Goodman.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, former Honduran congressman Tony Hernandez was involved in all stages of the trafficking through Honduras of multi-ton loads of cocaine that were destined for the U.S. Hernandez allegedly arranged machinegun-toting security for cocaine shipments, bribed law enforcement officials for sensitive information to protect drug shipments, and solicited large bribes from major drug traffickers. Thanks to the ongoing work of the DEA, Hernandez is now in custody on U.S. soil and facing justice in the U.S. courts.”
Special Agent in Charge Raymond Donovan said: “Drug trafficking and corruption around the world threatens the rule of law, fuels violence and instability, and harms innocent families and communities. Hernandez and his criminal associates allegedly conspired with some of the world’s most deadly and dangerous transnational criminal networks in Mexico and Colombia to flood American streets with deadly drugs. DEA looks forward to Hernandez facing American justice and answering for his alleged crimes.”
As alleged in the Superseding Indictment unsealed in federal court:[1]
From at least in or about 2004, up to and including in or about 2016, multiple drug-trafficking organizations in Honduras and elsewhere worked together, and with support from certain prominent public and private individuals, including Honduran politicians and law enforcement officials, to receive multi-ton loads of cocaine sent to Honduras from, among other places, Colombia via air and maritime routes, and to transport the drugs westward in Honduras toward the border with Guatemala and eventually to the United States. For protection from official interference, and in order to facilitate the safe passage through Honduras of multi-hundred-kilogram loads of cocaine, drug traffickers paid bribes to public officials, including certain members of the National Congress of Honduras.
HERNANDEZ is a former member of the National Congress of Honduras, the brother of the current president of Honduras, and a large-scale drug trafficker who worked with other drug traffickers in, among other places, Colombia, Honduras, and Mexico, to import cocaine into the United States. From at least in or about 2004, up to and including in or about 2016, HERNANDEZ was involved in processing, receiving, transporting, and distributing multi-ton loads of cocaine that arrived in Honduras via planes, go-fast vessels, and, on at least one occasion, a submarine. HERNANDEZ had access to cocaine laboratories in Honduras and Colombia, at which some of the cocaine was stamped with the symbol “TH,” i.e., “Tony Hernandez.” HERNANDEZ also coordinated and, at times, participated in providing heavily armed security for cocaine shipments transported within Honduras, including by members of the Honduran National Police and drug traffickers armed with, among other weapons, machineguns.
As part of his drug-trafficking activities, HERNANDEZ and his co-conspirators bribed law enforcement officials for sensitive information to protect drug shipments and solicited large bribes from major drug traffickers for HERNANDEZ.
In or about February 2014 in Honduras, HERNANDEZ met with Devis Leonel Rivera Maradiaga, the former leader of a violent Honduran drug-trafficking organization known as the Cachiros, for a meeting arranged by, among others, a former member of the Honduran National Police. During a video- and audio-recorded portion of that meeting, HERNANDEZ agreed to help Rivera Maradiaga by causing Honduran government entities to pay money owed to one or more Cachiros money-laundering front companies in exchange for kickback payments from Rivera Maradiaga. Rivera Maradiaga paid HERNANDEZ approximately $50,000 during the meeting.
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The Superseding Indictment charges HERNANDEZ, 40, with four counts: (1) conspiring to import cocaine into the United States, (2) using and carrying machine guns and destructive devices during, and possessing machine guns and destructive devices in furtherance of, the cocaine-importation conspiracy, (3) conspiring to use and carry machine guns and destructive devices during, and to possess machine guns and destructive devices in furtherance of, the cocaine-importation conspiracy, and (4) making false statements to federal agents. If convicted, HERNANDEZ faces a mandatory minimum sentence of 10 years in prison and a maximum term of life in prison on Count One, a mandatory minimum sentence of 30 years in prison and a maximum term of life in prison on Count Two, a maximum term of life in prison on Count Three, and a maximum term of five years in prison on Count Four. The potential mandatory minimum and maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office, as well as the U.S. Department of Justice’s Office of International Affairs.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III and Mathew J. Laroche are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former D.C. Schools Employee and Business Owner Plead Guilty to Federal Charge in Bid-Rigging SchemeRead the Press Release
WASHINGTON – A former employee of the District of Columbia Public Schools and a business owner, her longtime friend, pled guilty today to a federal mail fraud charge stemming from a bid-rigging scheme involving a government contract valued at nearly $300,000.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and District of Columbia Inspector General Daniel W. Lucas.
Amber R. Crowder, 39, of Washington, D.C., also known as Amber Hines, and Shauna Marie Brumfield, 40, of Sacramento, Calif., also known as Shauna Snell, each pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. The Honorable Senior Judge John D. Bates scheduled Brumfield’s sentencing for Feb. 5, 2019, and Crowder’s sentencing for Feb. 11, 2019.
According to a Statement of Facts agreed to by both defendants as part of their plea, Crowder worked as a program manager in the Office of Special Education (OSE) of the District of Columbia Public Schools (DCPS). In the summer of 2012, Crowder was tasked with identifying and recommending a company to aid in the scheduling of meetings related to individual education plans for special education students. Brumfield and Crowder agreed to work together to obtain the contract.
On Aug. 7, 2012, Brumfield created a company called A Simple Solution to bid on the contract. Brumfield and Crowder were partners in A Simple Solution. Crowder was not identified in any company filings or listed on any communications to DCPS in order to conceal her ownership interest in A Simple Solution. At the time, Brumfield and Crowder were also partners in another company called Education Connection, which provided tutoring services to special education students. Crowder was not identified in any Education Connection company filings or listed on any Education Connection communications to DCPS.
OSE chose A Simple Solution for the administrative assistant contract over several local qualified companies based on written documentation prepared by Crowder and her personal recommendation. In that documentation, Crowder falsely stated that A Simple Solution was an experienced company. Crowder falsely claimed that her contact person for A Simple Solution was “Marie Matthews,” which was an alias used by Brumfield. Crowder did not disclose that she was on the payroll of Education Connection. A Simple Solution bid $298,800 for the contract because Crowder disclosed to Brumfield that the expected budget for the contract was $300,000. Two separate contracts were signed to cover the entire school year. Crowder’s boyfriend signed the first contract as the purported A Simple Solution Chief Financial Officer, while Brumfield’s boyfriend signed the second contract as the purported A Simple Solution branch manager in order to make it appear that A Simple Solution was an established company with multiple employees.
As a result of the fraud, from October 2012 through March 2014, the District of Columbia Public Schools paid approximately $222,000 to A Simple Solution. Brumfield transferred approximately $19,164 of those funds from A Simple Solution’s bank account to Crowder’s personal bank account.
In announcing the pleas, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office and the District of Columbia Office of the Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Diane Lucas, Paralegal Specialists Joshua Fein and Aisha Keys, and former Paralegal Specialists Jessica Mundi and Kristy Penny. Finally, they commended the work of Assistant U.S. Attorneys Anthony Saler and Kondi Kleinman, who investigated and prosecuted the case.
Former California State Assemblyman Indicted for Fraud Scheme Involving BART Coffee ShopsRead the Press Release
OAKLAND – A federal grand jury returned a superseding indictment against defendant Terrence Patrick Goggin with four counts of wire fraud and nine counts of money-laundering, announced United States Attorney Alex G. Tse, Internal Revenue Service Special Agent in Charge Tara Sullivan, and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
Goggin, 76, is a former California State Assemblyman and current California-licensed attorney. According to the superseding indictment unsealed today, Goggin also was the CEO of Metropolitan Coffee & Concessions (MC2) and perpetrated an investment fraud scheme through the company. MC2 owned and operated four Peet’s Coffee & Tea retail centers in Bay Area Rapid Transit (BART) stations and held permits to expand their business to other stations. In 2013, Goggin solicited and obtained money from private equity investors to fund the build-out of two additional retail centers at the Civic Center and Balboa Park BART stations. The indictment alleges that after receiving investor funds, Goggin diverted the money to non-approved business projects in New York City, including a now-closed restaurant called “Preserve 24.” Goggin also used his authority as CEO to direct MC2 employees to transfer the investor money inappropriately. Further, Goggin used investor funds to support his personal spending and transferred thousands of dollars to a girlfriend in Thailand.
Goggin made his initial appearance in federal court in Oakland on November 26, 2018. Goggin is presently out of custody. A bail hearing and appointment of counsel will occur at 9:30 a.m. on December 5, 2018, before the Honorable Kandis Westmore, U.S. Magistrate Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Goggin faces a maximum sentence of 20 years imprisonment, and a fine of $250,000 or twice the gross gain or loss, plus restitution for each violation of 18 U.S.C. § 1343 (wire fraud) and a maximum sentence of 10 years imprisonment, and fine of $250,000 or twice the value of the criminal property involved in the transactions for each violation of 18 U.S.C. § 1957 (money laundering). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Katie Burroughs Medearis is prosecuting the case with the assistance of Jessica Rodriguez Gonzalez. The prosecution is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service–Criminal Investigation.
Former Business Partner of U.S. Military Contractor Sentenced to Prison for Bribery Scheme Related to Contracts in Support of Iraq WarRead the Press Release
A former business partner of a U.S. military contractor was sentenced today to 18 months in prison for his role in a years-long scheme to bribe U.S. Army contracting officials stationed at a U.S. military base in Kuwait during the Iraq War.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division, Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit and Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office made the announcement.
Finbar Charles, 62, a citizen of Saint Lucia most recently residing in Baguio City, Philippines, was sentenced by Chief U.S. District Judge Karon O. Bowdre of the Northern District of Alabama. Chief Judge Bowdre also ordered Charles to forfeit $228,558 in illicit gains. Charles pleaded guilty in July 2018 to one count of bribery of a federal official.
According to admissions made in connection with his guilty plea, Charles was a business partner of a former U.S. military contractor, Terry Hall. As Hall’s business partner, Charles admitted that he facilitated Hall and others in providing millions of dollars in bribes in approximately 2005 to 2007 to various U.S. Army officials in exchange for preferential treatment for Hall’s companies in connection with Department of Defense (DOD) contracts to deliver bottled water and construct security fencing to support U.S. troops stationed in Kuwait and Iraq.
As part of his role in this criminal conspiracy, Charles admitted that he managed bank accounts in Kuwait and the Philippines that he used to receive Department of Defense payments and transfer illegal bribes to various U.S. Army contracting officials, including Majors Eddie Pressley, James Momon, and Chris Murray. All of those individuals, as well as at least 10 other coconspirators, have pleaded guilty or been convicted of crimes relating to this scheme. Charles admitted that he falsified loan and consulting agreements to conceal the true nature of the bribe payments to the Army officers, and that he personally received over $228,000 in illicit gains as a result of his participation.
This case was investigated by the DCIS, the U.S. Army Criminal Investigation Command, the FBI and the Special Inspector General for Iraq Reconstruction. The Criminal Division’s Office of International Affairs provided substantial assistance in this matter. The case was prosecuted by Trial Attorneys Peter N. Halpern and Robert J. Heberle of the Criminal Division’s Public Integrity Section.
District Man Pleads Guilty to Sexually Abusing 12-Year-Old ChildRead the Press Release
WASHINGTON – A 31-year-old man, of Washington, D.C., pled guilty today to sexually abusing his 12-year-old biological daughter, U.S. Attorney Jessie K. Liu announced.
The man, who is not identified here to protect the privacy of the victim, pled guilty in the Superior Court of the District of Columbia to a charge of second-degree child sexual abuse. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon five-year prison term. Following his prison term, the man will be required to register for 10 years as a sex offender and also complete a term of supervised release. The Honorable Danya A. Dayson scheduled sentencing for Feb. 8, 2019.
According to the government’s evidence, on Sept. 15, 2018, the victim was staying with her father at her uncle’s house. The victim was asleep on the bed with her brother. The defendant lay down behind her and sexually assaulted her. The victim “froze” while this was happening and tried to think of words to make it stop. She told the defendant to move, and she got off the bed and grabbed her phone and walked to the bathroom to call her mother. The defendant told her not to call her mother, but she called her and reported the abuse. The victim then called 911.
The defendant was arrested the same day and has been in custody ever since.
In announcing the plea, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department’s Youth and Family Services Division. She also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences, the Children’s Advocacy Center, and Children’s National Medical Center. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Tracey Hawkins, Paralegal Specialist Brenda Williams, and Assistant U.S. Attorney Elana Suttenberg, who investigated and prosecuted the case.
Cuyahoga County Land Bank employee indicted for soliciting and accepting improvements to his property in Cleveland Heights in return for assisting a demolition company get contractsRead the Press Release
A Cuyahoga County Land Bank employee was indicted for soliciting and accepting improvements to his property in Cleveland Heights in return for assisting a demolition company get contracts.
Kenneth Tyson, 48, was indicted on one count of conspiracy to commit bribery and honest services fraud, three counts of honest services wire fraud and one count of bribery.
Tyson worked as property specialist for the Cuyahoga County Land Reutilization Corp., also known as the Cuyahoga County Land Bank. Tyson served as a liaison with East Cleveland on land acquisition, demolition and other projects, according to the indictment.
He vetted prospective demolition contractors seeking to be placed on the Land Bank’s list of qualified contractors and exercised influence over who could compete for Land Bank contracts, according to the indictment.
Residential Commercial Industrial (RCI) Services was a demolition company whose principal place of business was East Cleveland. It was operated by someone identified in the indictment as M.R. A person identified as M.S. served as chief of staff in the city of East Cleveland
Tyson conspired with M.R. and M.S. between 2013 and 2018. Tyson solicited M.R. to provide free contractor and repair services to Tyson’s property at 1210 Castleton Road in Cleveland Heights. In exchange, Tyson assisted and arranged for RCI to be put on the Land Bank’s qualified demolition contractor list and for RCI to be invited to bid on Land Bank demolition jobs, according to the indictment.
In October 2013, M.R. was billed approximately $2,565 for plumbing work done at Tyson’s property. That same month, M.R. paid someone approximately $1,000 to cut down a tree on the property, according to the indictment.
An East Cleveland employee, at the direction of M.S., sent documents and pictures to the Land Bank confirming RCI had previously completed demolition work in East Cleveland. Tyson and others conducted a site visit to RCI on Elderwood Road in East Cleveland, according to the indictment.
RCI was added to the Land Bank’s system as a demolition contractor on Nov. 21, 2013, allowing it to bid on Land Bank contracts. Five days later, the Land Bank invited RCI to bid on jobs at three sets of properties. RCI submitted the lowest bids on those jobs and was awarded the contracts, according to the indictment.
The Land Bank sent RCI three checks between January and March 2014, paying approximately $32,355 for the work, according to the indictment.
Around July 2014, RCI paid approximately $3,200 for concrete work done at Tyson’s property, according to the indictment.
“This defendant used his position to enrich himself with free home repairs when he was supposed to be helping rid our community of blight,” said U.S. Attorney Justin Herdman. “We remain committed to stamping out public corruption in all its forms.”
“The charges disclosed today prove our continuing resolve to root out fraud and corruption in all forms, especially when the programs involved should have been used to help our neediest families,” said HUD-OIG Special Agent in Charge Brad Geary. “It is our continuing core mission to work with our Federal law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to personally benefit from taxpayer-funded grants.”
"Competition in federal blight demolition programs is critical to protecting taxpayers, with no room for contract awards involving bribery, as is alleged against this land bank official,” said Special Inspector General for the Troubled Asset Relief Program Christy Goldsmith Romero. “Cuyahoga County Land Bank has taken nearly $60 million from TARP’s Blight Elimination Program to demolish homes and improve local communities. It is critical that these taxpayer funds be used appropriately and for their intended purpose. I thank U.S. Attorney Justin Herdman and his team of prosecutors for standing with SIGTARP in the fight against blight-related crime.”
“Our tax-paying citizens are entitled to decisions based on the best interests of the public, not the best interests of corrupt public officials and bribe-paying contractors,” FBI Special Agent in Charge Stephen D. Anthony said. “The FBI will continue to hold those that violate the public trust accountable in a court of law.”
This case was investigated by the Department of Housing and Urban Development’s Office of Inspector General, The Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Bureau of Investigation and and the Internal Revenue Service – Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Carmen E. Henderson and Chelsea S. Rice.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.Concord Man Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD- Jason Sfara, 44, of Concord, pleaded guilty in federal court to possession of fentanyl, cocaine, and methamphetamine with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, parole officers attempted to conduct a parole inspection of Sfara's apartment in Concord on May 15, 2018, and Sfara fled to the roof of the building. The Concord Police Department responded to provide assistance and arrested Sfara on the roof. Officers ultimately obtained a search warrant for Sfara's apartment and found an array of illegal drugs including 107.8 grams of fentanyl, 32 grams of cocaine, and 20 grams of methamphetamine, along with digital scales and other drug distribution paraphernalia.
Sfara is scheduled to be sentenced on March 4, 2019.
“Fentanyl, cocaine and methamphetamine are lethal substances whose distribution in New Hampshire endangers the general public as well as police officers,” said U.S. Attorney Murray. “Accordingly, we are coordinating our efforts with our law enforcement partners to target dealers and get them off the streets.”
This matter was investigated by the Concord Police Department. The case is being prosecuted by Assistant U.S. Attorney Jarad Hodes.
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Claremore Doctor Guilty of Pill Sharing ConspiraciesRead the Press Release
TULSA, Okla. – A Claremore physician pleaded guilty today in U.S. District Court to leading multiple conspiracies to write fraudulent opioid prescriptions in an effort to support his drug habit.
United States Attorney Trent Shores announced that Dr. Jeremy David Thomas, 42, of Owasso, was convicted of drug conspiracies in five separate federal cases.
Today’s guilty pleas stem from Thomas’ issuance of fraudulent prescriptions for the opioid hydrocodone to multiple co-conspirators who were his patients. His accomplices then filled the prescriptions at area pharmacies and delivered some or all of the hydrocodone tablets to Thomas. As a result of their illegal pill sharing activity, Thomas and his co-conspirators diverted more than 13,740 doses of the drug during a two year period, mainly for the physician’s illegal personal use.
“We need to be more aware today than ever before of the dangers of opioid addiction. The defendant, Dr. Thomas, risked the lives of his patients by performing an estimated 2,500 surgical procedures while under the influence of opioids. Dr. Thomas exploited the special Doctor-patient relationship to feed his addiction. He became a drug dealer hiding behind a medical license,” said U.S. Attorney Trent Shores.
Assistant Special Agent in Charge Richard W. Salter (Oklahoma District) added, “The number of Americans dying each day from opioid overdoses is alarming. There are few, if any, communities that have been spared by this epidemic. The elimination of this drug trafficking organization will absolutely spare lives. While the vast majority of the medical professionals in this country are committed to saving lives, there are a few who are merely drug dealers hiding behind lab coats, and driven by greed. The DEA in Oklahoma, in collaboration with our state, local, and tribal law enforcement partners, will continue to aggressively investigate and prosecute anyone who illegally diverts or traffics opioids in our communities. The success of this case is the direct result of outstanding collaboration among the Rogers County District Attorney’s Office, the Oklahoma Bureau of Narcotics and Dangerous Drugs (OBNDD), the Northern District of Oklahoma U.S. Attorney’s Office, and the DEA Tulsa Resident Office.”
Investigators from the Rogers County District Attorney’s Office played a significant role in investigating the pill sharing conspiracy.
"This case illustrates the far-reaching impact of opioid abuse and its effects across society. I appreciate the work by the United States' Attorney's Office and law enforcement to remove the source of these illegally diverted drugs," said Rogers County District Attorney Matthew J. Ballard.
Also implicated in the drug conspiracies are Jeffrey Lee Koger, 47, of Claremore; Joseph Marcus Jones, 36, of Claremore; Toni Dawn Martin, 49, of Owasso; Shawn Del Martin, 50, of Owasso; and Chad Lee Choat, 46, of Claremore.
U.S. District Judge John E. Dowdell set Thomas’ sentencing for Feb. 28, at 10 a.m. At that time, Thomas faces a maximum penalty of 20 years in prison and a $2 million fine for each count of Drug Conspiracy and Distribution.
Thomas was remanded into the custody of the U.S. Marshals Service.
The Rogers County District Attorney’s Office, the Drug Enforcement Administration, and the Oklahoma Bureau of Narcotics and Dangerous Drugs conducted the investigation. Assistant U.S. Attorney Joel-lyn McCormick prosecuted the case. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force Unit for the Northern District of Oklahoma.
This investigation and resulting conviction are part of the Department of Justice and Department of Health and Human Services’ 2018 National Healthcare Fraud and Opioid Takedown initiative, the largest ever healthcare fraud enforcement action. The opioid related enforcement action charged 162 defendants, including 76 doctors, for their roles in illegally prescribing and distributing opioids and other dangerous narcotics.
Painkillers are involved in more than 80% of the prescription drug-related overdose deaths in Oklahoma, and hundreds of Oklahomans die each year due to these overdoses. To find help and resources to fight opioid addiction, visit the following site:
https://findtreatment.samhsa.gov/
Chapmanville Man Pleads Guilty to Federal Methamphetamine and Firearm ChargesRead the Press Release
CHARLESTON, W.Va. – A Chapmanville man pled guilty today to drug and firearm charges, announced United States Attorney Mike Stuart. Courtney Edward Dalton, 39, entered his guilty plea to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking before United States District Judge Joseph R. Goodwin. Stuart commended the investigative efforts of the U.S. 119 Task Force and the Federal Bureau of Investigation (FBI).
“When we find guns on drug dealers, we will charge them with both drug and gun crimes,” said United States Attorney Mike Stuart. “We will not tolerate gun-toting drug dealers in our communities.”
On March 13, 2018, as part of an ongoing drug investigation, police stopped Dalton as he was driving on WV Route 10 in Harts, Lincoln County, West Virginia. Upon searching the vehicle, police found approximately 1.5 ounces of methamphetamine, marijuana, scales, and a loaded Taurus 9mm pistol. Dalton admitted that he intended to distribute the methamphetamine and that he carried the pistol in order to protect himself from being robbed of his drugs.
Dalton faces a mandatory minimum sentence of 5 years to life in federal prison when he is sentenced on February 20, 2019. Assistant United States Attorney Joshua C. Hanks is responsible for the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Canadian Resident Arrested for Alien SmugglingRead the Press Release
PLATTSBURGH, NEW YORK – Hector Vinicio Howell-Calvo, age 50, a Canadian resident and Costa Rican citizen, was arrested on November 23 for encouraging and inducing three aliens, all Mexican citizens, to illegally enter the United States.
The announcement was made by United States Attorney Grant C. Jaquith; Steven Bronson, United States Customs and Border Protection Port Director for the Champlain Port of Entry; and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
According to the criminal complaints, Howell-Calvo attempted to drive to the United States through the Mooers, New York, Port of Entry on the morning of November 23, 2018.
During inspection at the Port of Entry, Howell-Calvo admitted to Customs and Border Protection Officers that he drove three Mexican citizens to the Canadian side of the border, where they planned to cross the border on foot, and that Howell-Calvo planned to pick up the Mexican citizens on the United States side of the border and to drive them to Newark, New Jersey.
Border Patrol Agents then found the three aliens walking in Mooers Forks, New York. Further investigation revealed that each of them paid or planned to pay Howell-Calvo 3,000 Canadian dollars in exchange for helping them illegally enter the United States.
The charges in the complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The three Mexican citizens are Martin Soriano-Trujillo, Leobardo Uriel Soriano-Trujillo, and Jose Manuel Rodriguez-Garcia.
Leobardo Soriano-Trujillo and Rodriguez-Garcia have been charged with the misdemeanor crime of illegal entry. Martin Soriano-Trujillo, who was deported from the United States on October 21, 2011, has been charged with illegal re-entry, a felony.
The charge filed against Howell-Calvo carries a maximum sentence of 10 years in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by U.S. Customs and Border Protection and U.S. Border Patrol, and is being prosecuted by Assistant U.S. Attorney Shira Hoffman.
Buffalo Man Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Luis Rosario, 42, of Buffalo, NY, who was convicted of attempt to possess with intent to distribute 500 grams or more of cocaine, was sentenced to serve 33 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Patricia Astorga, who handled the case, stated that on June 8, 2016, the United States Postal Inspection Service executed a federal search warrant on a postal parcel that was addressed to co-defendant Jorge Rivera at a residence on Woodlawn Avenue in Buffalo. The package was mailed from Puerto Rico. The package contained approximately two pounds of a white powdery substance that field-tested positive for the presence of cocaine.
Law enforcement officers replaced the contents of the package with sham and a transmitter that would alert officers when the package was opened. Officers then conducted a controlled delivery of the package to the residence. The package was signed for and accepted by Jorge Rivera. The defendant then arrived at the residence and the package was opened a short time later. When officers then entered the residence, Rivera and Rosario fled down the rear staircase and entered the lower apartment. As they did so, Rivera threw the sham kilogram of cocaine out of the second story window. Both defendants were arrested.
During a search of the residence, officers seized a digital scale, packaging equipment, and cell phones.
Jorge Rivera was previously convicted and is awaiting sentencing.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin, Boston Division.
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Brooklyn Man Sentenced to 72 Months in Jail for Possession with Intent to Distribute Crack CocaineRead the Press Release
Christina E. Nolan, United States Attorney for the District of Vermont, stated that Shane David, 24, of Brooklyn, New York, was sentenced today in United States District Court in Burlington by U.S. District Court Judge Christina Reiss, to 72 months in prison followed by four years of post-release supervision, for possession with intent to distribute approximately 1.4 kilograms of crack cocaine and 1.05 kilograms of marijuana.
According to court records, on October 14, 2017, David was stopped by Vermont State Police for speeding on VT Route 22A in West Haven, Vermont. A subsequent investigation led to substantial seizures from the vehicle of crack cocaine and marijuana with a combined street value of between $170,000 and $200,000.
On January 11, 2018, David was indicted by a federal grand jury on a one-count indictment charging him with Possession with Intent to Distribute crack cocaine and marijuana. David pleaded guilty to a Superseding Information on August 10, 2018, pursuant to a negotiated plea agreement.
The case was jointly investigated by the Vermont State Police and the Federal Bureau of Investigation. The United States Attorney commends those agencies for their work and cooperation. David was represented by Assistant Federal Public Defender Elizabeth Quinn. The prosecutor was Assistant U.S. Attorney Abigail Averbach.
Bronx Men Plead Guilty in Manhattan Federal Court to Explosives ChargesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that CHRISTIAN TORO and TYLER TORO pled guilty to manufacturing and possessing a destructive device, and conspiring to do so, in connection with their stockpiling of explosive materials and manufacture of a destructive device. Both defendants pled guilty today in Manhattan federal court before U.S. District Judge Richard M. Berman. They are scheduled to be sentenced on March 26, 2019, CHRISTIAN TORO at 11:00 a.m. and TYLER TORO at 2:00 p.m.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As admitted in court today, Christian Toro and Tyler Toro sought to build a destructive device that could have caused great damage. Christian Toro used a minor student to assist him in this endeavor. Thanks to the excellent work of the FBI and the NYPD, no one was injured as a result of this grave conduct, and the defendants now await sentencing for their crimes.”
According to the allegations in the Complaint, the Indictment, and statements made during court proceedings:
Between approximately October 2017 and February 2018, CHRISTIAN TORO and TYLER TORO conspired to build and possess a destructive device at their residence in the Bronx, New York (the “Residence”). CHRISTIAN TORO, a former teacher at a high school in Harlem, New York (the “School”), paid students from the School for their assistance in manufacturing the destructive device, doling out approximately $50 per hour in return for the students’ work dismantling fireworks and storing the explosive powder contained within those fireworks in containers. CHRISTIAN TORO also had on his School laptop a copy of a book that provided instructions for, among other things, manufacturing explosive devices.
On February 15, 2018, law enforcement agents searched the Residence pursuant to a judicially authorized search warrant. In a bedroom shared by CHRISTIAN TORO and TYLER TORO, law enforcement agents recovered numerous components for use in building a destructive device and other dangerous substances, including: (i) a glass jar containing low explosive powder; (ii) a strip of magnesium metal; (iii) approximately twenty pounds of iron oxide; (iv) approximately five pounds of aluminum powder; (v) a mixture of iron oxide and aluminum powder, the key ingredients for thermite; (vi) approximately five pounds of potassium nitrate; (vii) a cardboard box containing firecrackers; and (viii) metal spheres, which can be used as fragmentation for a bomb.
Also in the Residence, law enforcement agents found a handwritten diary labeled with TYLER TORO’s name, which stated, among other things, “WE ARE TWIN TOROS STRIKE US NOW, WE WILL RETURN WITH NANO THERMITE” and “I AM HERE 100%, LIVING, BUYING WEAPONS. WHATEVER WE NEED.” Agents also recovered a page inside a notebook found in the Residence labeled “Operation Flash,” with a ledger appearing to delineate the hours worked and payment owed to one of the School’s students.
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CHRISTIAN TORO, 28, and TYLER TORO, 28, both of the Bronx, New York, each pled guilty to one count of conspiracy to manufacture and unlawfully possess a destructive device, which carries a maximum sentence of five years in prison; one count of unlawfully manufacturing a destructive device, which carries a maximum sentence of 10 years in prison; and one count of unlawfully possessing a destructive device, which carries a maximum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the defendants’ sentences will be determined by Judge Berman.
U.S. Attorney Berman praised the outstanding investigative work of the Federal Bureau of Investigation’s (“FBI”) New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Elizabeth A. Hanft is in charge of the prosecution.
Bridgeport Man Charged with Committing Multiple RobberiesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging ALVIN ROBERTSON, 55, of Bridgeport, with three counts of bank robbery and two counts of interference with commerce by robbery.
The indictment was returned on October 16, 2018. Robertson appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and entered a plea of not guilty to the charges. He has been detained since his arrest on related state charges on September 27, 2018.
The indictment alleges that Robertson robbed a Subway store located at 9 Ethan Allen Highway in Ridgefield on May 20, 2018; a Subway store located at 447 Monroe Turnpike in Monroe on July 22, 2018; a People’s United Bank branch located at 470 Monroe Turnpike in Monroe on August 29, 2018; a People’s United Bank branch located at 763 Straits Turnpike in Watertown on September 21, 2018, and a People’s United Bank branch located at 1135 Farmington Avenue in Berlin on September 25, 2018.
If convicted, Robertson faces a maximum term of imprisonment of 20 years on each count.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Watertown, Ridgefield, Monroe and Berlin Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Berkeley County man indicted for illegal firearms salesRead the Press Release
MARTINSBURG, WEST VIRGINIA – William Loren Hoffman, of Falling Waters, West Virginia, appeared today in federal court after being indicted by a federal grand jury sitting in Martinsburg on November 21, 2018 for firearms sales violations, United States Attorney Bill Powell announced.
Hoffman, age 52, is charged with two counts of “Sale to a Prohibited Person” and two counts of “Making a False Entry in records by Federal Firearms Dealer.” Hoffman is accused of knowingly selling a .45 ACP caliber Hi-Point rifle to a convicted felon and knowingly failing to make an appropriate entry of the sale in his records. The crimes allegedly took place in October 2018 in Berkeley County.
Hoffman faces up to 10 years incarceration and a fine of up to $250,000 for each of the sale counts and faces up to one year incarceration and a fine of up to $100,000 for each of the entry counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Attorney General’s Office has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Attorney General announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Behavioral Health Counselor Sentenced to Prison for Defrauding MedicaidRead the Press Release
OKLAHOMA CITY – SAMUEL OKERE, 61, of Oklahoma City, has been sentenced to a year in prison for Medicaid fraud, announced Robert J. Troester of the United States Attorney’s Office and Mike Hunter, Oklahoma Attorney General.
Okere was a licensed professional counselor and owner of New Life Counseling Services. On November 15, 2017, a federal grand jury charged him with 224 counts of defrauding the Oklahoma Health Care Authority through false claims for behavioral health counseling. In particular, the indictment alleged that Okere billed for counseling sessions for multiple individuals, primarily children, at times when he could not have been counseling them. For example, some of the times and dates billed were when clients were at school. Others were when Okere was engaged in activities inconsistent with counseling, such as speaking on the phone with representatives of the Oklahoma Health Care Authority.
Okere pleaded guilty to health care fraud on April 3, 2018.
Today U.S. District Judge Stephen P. Friot sentenced Okere to a year and a day in federal prison, to be followed by three years of supervised release. Pursuant to his plea agreement, he has paid $141,545.16 in restitution to Medicaid. A portion of the restitution will go to SoonerCare and a portion to the Centers for Medicare and Medicaid Services. Judge Friot also ordered Okere to pay a fine of $10,000.
This case was the result of an investigation by the Oklahoma Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Amanda Maxfield Green and Assistant Oklahoma Attorney General Lory Dewey, who is also a Special Assistant U.S. Attorney, are prosecuting the case. Reference is made to court filings for further information.
23 November 2018
Westwego Man Indicted for Mail Fraud and Aggravated Identity TheftRead the Press Release
NEW ORLEANS, LOUISIANA – KHANH BUI, age 42, a resident of Westwego, Louisiana, was charged by a federal grand jury on November 9, 2018 in a nine-count indictment for mail fraud and aggravated identity theft, announced U.S. Attorney Peter G. Strasser.
According to court documents, BUI fraudulently obtained credit cards and false California driver’s licenses in order to obtain money and property from home improvement stores.
If convicted, BUI faces 20 years of imprisonment and a $250,000 fine for mail fraud. BUI also faces a mandatory consecutive two-year sentence in addition to any sentence for mail fraud if convicted of aggravated identity theft.
U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Supervisor of the General Crimes Unit.
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U.S. Attorney's Office Announces DOJ Grant of $300,000 to VIPD to Support the Body-Worn Camera Policy and Implementation ProgramRead the Press Release
United States Attorney Gretchen C.F. Shappert announced today that the Virgin Islands Police Department is the recipient of $ 300,000 as part of the Department of Justice (DOJ) Body-Worn Camera Policy and Implementation Program. DOJ’s Bureau of Justice Assistance awarded more than $12.2 million to 75 law enforcement agencies to support implementation and expansion of comprehensive body-worn camera programs. This funding will enable law enforcement agencies to improve their capacity to collect evidence and protect the safety of law enforcement officers and citizens. "The Body-Worn Camera (BWC) program is designed to implement the Department’s priority of supporting America’s law enforcement by providing the necessary technical assistance so that police officers can do their jobs more effectively," Shappert said. "Body-worn cameras are important investigative tools in the law enforcement toolbox."
The intent of the program is to help agencies develop, implement, and evaluate a BWC program as one tool in a law enforcement agency's comprehensive problem solving approach to enhance officer safety and build community trust. Elements of such an approach include: implementation of a BWC program developed in a planned and phased approach; implementation of appropriate privacy policies; implementation of operational procedures and tracking mechanisms; training of local officers, administrators, and associated agencies that require access to digital multimedia evidence; and the adoption of practices and deployment of BWC programs appropriately addressing operational requirements.
For a complete list of individual grant programs, amounts awarded, and the jurisdictions that will receive funding, visit https://go.usa.gov/xPUfH. Additional information about Fiscal Year 2018 OJP grant awards can be found online at https://go.usa.gov/xnqk5.
Department of Justice Releases Annual Report to Congress on Indian Country Investigations and ProsecutionsRead the Press Release
NOTE: The entire report can be found here.
WASHINGTON - The Department of Justice released today its annual report to Congress, Indian Country Investigations and Prosecutions, which provides a range of enforcement statistics required under the Tribal Law and Order Act, as well as information about the progress of the Department’s initiatives to reduce violent crime and strengthen tribal justice systems.
The report reveals that in 2017, U.S. Attorney Offices prosecuted a majority of Indian country cases presented to them. U.S. Attorney Offices declined prosecution of a minority of cases presented to them primarily due to insufficient evidence or referral to another prosecuting authority, such as a tribal prosecutor. The report also shows that the FBI closed 12.5 percent more investigations in 2017 than in 2016 (see detailed findings below).
“The Department of Justice is committed to public safety in Indian country,” said Deputy Attorney General Rod J. Rosenstein. “We have demonstrated this commitment over the past two years by investing substantial resources and supporting innovative programs that empower federal and tribal prosecutors and build the capacity of tribal justice systems. Today’s report demonstrates that our work makes a difference. Lasting public safety improvements in Indian country are best achieved when federal, state, and tribal law enforcement agencies work together.”
“The Justice Department’s Indian Country Investigations and Prosecutions Report reflects that the many coordinated efforts among United States Attorneys and tribal justice officials are making a difference,” said Trent Shores, U.S. Attorney for the Northern District of Oklahoma, and Chairman of the Attorney General’s Advisory Subcommittee on Native American Issues. “Our work continues, and we must be resolute, in order to meet the challenges prevalent in American Indian and Alaska Native communities. In August, the Attorney General's Native American Issues Subcommittee met and renewed our commitment to finding meaningful and practical tools to help put an end to the disproportionate rates of violence afflicting Native Americans. Among these, the department is expanding the use of cross-deputization agreements, access to criminal databases, funding for juvenile programs serving at-risk native youth, and services to victims and their families. We must continue to work together and find solutions to violent crime and drug trafficking in Indian Country. United States Attorneys are committed to upholding the federal trust responsibility and the rule of law in Indian Country.”
The Trump Administration has strengthened the Department’s commitment to Indian Country by prioritizing the reduction of violent crime throughout the United States—including in Indian Country. This reflects a recognition that Native Americans suffer from persistently high rates of violent crime, particularly domestic and sexual abuse of women and children, and like many communities in the United States, have been hit hard by both opioid and methamphetamine abuse.
In April 2017, as part of the Department’s efforts under the Task Force on Crime Reduction and Public Safety, Attorney General Jeff Sessions announced a series of actions the Department would take to support law enforcement and maintain public safety in Indian Country.
The Justice Department recognizes that investigating crime and prosecuting those responsible is critical to public safety in Indian Country. To that end, the Justice Department’s partnerships with tribes, as well as all federal, state and local law enforcement, are crucial to success. The Department deploys innovative programs such as the Tribal Access Program, Tribal Special Assistant U.S. Attorneys, and numerous grant programs that enhance partnerships, increase information sharing, build capacity for local criminal justice systems, and provide services to victims of crime.
According to the report, in 2017 implementation of the Violence Against Women Reauthorization Act of 2013 (VAWA 2013) remained an important priority for the Department. Federal prosecutors continued to utilize the federal assault charges created by VAWA 2013. In Calendar Year (CY) 2017, federal prosecutors filed cases against 139 defendants under VAWA 2013’s enhanced federal assault statutes, which include enhanced sentences for certain crimes of domestic violence such as strangulation and stalking. They obtained 134 convictions (an increase of 30% from CY 2016 (103)). Also in CY 2017, prosecutors filed cases against 43 defendants in Indian country cases using the domestic assault by a habitual offender statute, 18 U.S.C. § 117, and obtained 29 convictions.
Cooperation among federal and tribal law enforcement and victim advocates is key to successfully prosecuting sexual assault crimes in Indian country. As of 2017, every U.S. Attorney Office with Indian country responsibilities has developed federal sexual violence guidelines designed to improve the federal response to sexual abuse in tribal communities.
The report also notes that the Tribal Liaison Program remains one of the most important components of the Department’s efforts in Indian country. TLOA requires that the U.S. Attorney for each district with Indian country appoint at least one Assistant United States Attorney to serve as a Tribal Liaison for that district. They foster and facilitate relationships between federal and tribal partners that are vital to reducing violent crime. As part of their duties, Tribal Liaisons assist in developing multi-disciplinary teams to combat child abuse, work with SART teams on sexual abuse response, conduct community outreach, and coordinate the prosecution of federal crimes.
The information contained in the report shows the following:
- FBI’s CY 2017 statistics show a 12.5 percent increase in total closed investigations (2,210 total) compared to FBI’s CY 2016 statistics (1,960 total). The FBI has investigative responsibility for federal crimes committed on approximately 200 Indian Reservations. This responsibility is shared concurrently with BIA-OJS and other federal agencies with a law enforcement mission in Indian country
- Approximately 79.5 percent (1,511 out of 1,900) of Indian country criminal investigations opened by the FBI were referred for prosecution.
- Of the 699 Indian country investigations that the FBI closed administratively without referral for prosecution, the primary reason for closing (approximately 21 percent) was that the case did not meet statutory definitions of a crime or U.S. Attorney’s Office (USAO) prosecution guidelines. In addition, analysis of CY 2017 data indicates that 15 percent of investigations closed administratively were closed due to unsupported allegations, meaning no evidence of criminal activity was uncovered during the investigations. Another reason for non-referral (20 percent) was that the deaths under investigations were determined to be the result of accident, suicide, or natural causes.
- 84 percent (141 out of 167) of the death investigations that were closed administratively by the FBI in CY 2017 were closed because the death was due to causes other than homicide (i.e., accidents, suicide, or natural causes).
- In CY 2017, the USAOs resolved 2,390 Indian country matters.
- The majority of Indian country criminal matters resolved by the USAOs in CY 2017 (1,499 out of 2,390) were prosecuted (charges filed in either District or Magistrate Court).
- The USAO declination rate remained relatively steady. USAO data shows that in CY 2017, 37% (891) of all (2,390) Indian country matters resolved were declined. USAOs declined cases at a similar rate in prior years: 34% (903) of all Indian country matters resolved (2,666) in CY 2016; 39% (1,043) of all Indian country matters resolved (2,655) in CY 2015; 34% (989) of all Indian country matters resolved (2,886) in CY 2014; 34% (853) of all Indian country matters resolved (2,514) in CY 2013; 31% (965) of all Indian country matters resolved (3,097) in CY 2012; and 38% (1,042) of all Indian country matters resolved (2,767) in CY 2011.
- The most common reason for declination by USAOs was insufficient evidence (70.9% in CY 2017, 68.0% in CY 2016, 71.7% in CY 2015, 59.6% in CY 2014, 55.6% in CY 2013, and 52% in CY 2012). The next most common reason for declination by USAOs was referral to another prosecuting authority (13.2% in CY 2017, 16.4% in CY 2016, 13.8% in CY 2015, 16.3% in CY 2014, 20.8% in CY 2013, and 24% in CY 2012).
The data presented in this report covers only those offenses reported to the FBI and federal prosecutors. The majority of criminal offenses committed, investigated, and prosecuted in Indian Country are adjudicated in tribal justice systems. In much of Indian Country, tribal law enforcement and tribal justice systems hold criminals accountable, protect victims, provide youth prevention and intervention programs, and confront precursors to crime such as alcohol and substance abuse. These efforts are often in partnership with federal agencies or accomplished with support from federal programs and federal funding opportunities.
Read the entire report at www.justice.gov/tribal/tloa.html
Read about the Justice Department’s efforts to increase public safety in Indian County at www.justice.gov/tribal/accomplishments.html
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Do not reply to this message. If you have questions, please use the contacts in the message or call the Office of Public Affairs at 202-514-2007.
22 November 2018
Deputy Attorney General Rod Rosenstein Delivers the Keynote Address at the 87th INTERPOL General Assembly in Dubai, United Arab EmiratesRead the Press Release
Deputy Attorney General Rod Rosenstein recently traveled to Dubai, United Arab Emirates, to deliver the keynote address at the 87th INTERPOL General Assembly.
Deputy Attorney General Rod Rosenstein delivers the keynote remarks at the 87th INTERPOL General Assembly.
The Deputy Attorney General’s remarks focused on the opportunities and challenges faced by law enforcement in the cyber age, and emphasized the need for member nations to uphold and advance the rule of law. Although the Internet “holds immeasurable promise as a repository of ideas, and as a forum for speech and commerce,” he stated, it also can be “exploited by wrongdoers” “to damage information systems, steal data, commit fraud, violate privacy, attack critical infrastructure, and sexually exploit children. They also launch misleading schemes to influence people’s opinions, seeking to foment division and disrupt democratic processes.” In light of the risks posed by “malicious actors [who] use the Internet for evil ends,” the Deputy Attorney General called out those nations—like Russia—that have refused to extradite cybercriminals and instead have recruited them to carry on their crimes safe from international criminal process.
Before an audience of more than 1,000 delegates from over 150 nations, Deputy Attorney General Rosenstein promised that the United States would continue to “expose schemes to manipulate the extradition process” and “identify nations that routinely block the fair administration of justice and fail to act in good faith.” By doing so, he stated, nations around the world can ensure that “cyber criminals . . . find no safe haven, either on the dark web or within national borders.”
Deputy Attorney General Rosenstein learning about the history of Dubai on top of the Burj Khalifa.
The Deputy Attorney General also highlighted “several prominent challenges to the rule of law” within INTERPOL and its member nations, including “the lawless attacks on Sergei and Yulia Skripal and Jamal Khashoggi” and “the disappearance of [former INTERPOL] President Meng Hongwei.” Such events, he said, “give rise to questions about whether our member countries abide by shared principles.” The Deputy Attorney General reminded INTERPOL member nations of their obligation to “support leaders and policies that promote international police coordination and preserve the rule of law—in practice, and not just in theory.”
Three days later, INTERPOL member nations answered the call when the General Assembly voted to elect Kim Jong Yang of South Korea as INTERPOL’s next president. The United States had strongly endorsed Mr. Kim in light of his commitment to upholding policies that advance international police coordination and preserve the rule of law.
In addition to delivering the keynote address, Deputy Attorney General Rosenstein met with senior officials from INTERPOL and several member nations in attendance at the General Assembly to discuss opportunities for promoting cooperation between law enforcement partners and the pursuit of justice across international borders.
Prior to the Deputy Attorney General’s trip, teams from the United States and the UAE had completed the latest round of negotiations on a mutual legal assistance treaty between the two countries. Mutual legal assistance treaties allow generally for the United States and its treaty partner to quickly obtain evidence needed for important investigations and trials in both countries. If approved by both countries, this would be the first such treaty between the United States and a Gulf region nation. Deputy Attorney General Rosenstein met with His Excellency Abdul Rahman Al-Baloushi, Director of International Cooperation, UAE Ministry of Justice, to discuss the next steps and other ongoing activities to maintain the robust and positive law enforcement relationship between the two countries.
While in the United Arab Emirates, the Deputy Attorney General met with United States Embassy staff, led by Charge d'Affaires Steve Bondy.
21 November 2018
United States Attorney Alex G. Tse Congratulates Judges Ioana Petrou and Tracie L. Brown on Their Appointments to the California Courts of AppealRead the Press Release
SAN FRANCISCO – United States Attorney Alex G. Tse congratulated Superior Court Judges Ioana Petrou and Tracie L. Brown on their respective selections by Governor Edmund G. Brown Jr. for appointments to First District Court of Appeal. Both selectees worked for the Office of the United States Attorney for the Northern District of California.
Judge Petrou, who has been appointed associate justice for Division Three of the First District Court of Appeal, served as an Assistant U.S. Attorney in the Northern District of California from 2004 to 2010. Judge Petrou also served as an Assistant U.S. Attorney in the Eastern District of New York from 2000 to 2002. Judge Brown, who has been appointed associate justice for Division Four of the First District Court of Appeal, served as an Assistant U.S. Attorney from 2002 to 2013. Both appointments require confirmation by the California Commission on Judicial Appointments.
“We are proud to see the elevation of these former assistant U.S. attorneys to the California Courts of Appeal,” said U.S. Attorney Tse. “I am certain that both Judge Petrou and Judge Brown will continue to serve with distinction as justices of the California Courts of Appeal.”
Two Western Massachusetts Men Charged with Armed RobberyRead the Press Release
BOSTON – Two western Massachusetts men were arrested and charged today in federal court in Springfield in connection with at least nine armed robberies throughout western Massachusetts.
Alfredo Aldeco, 32, of Holyoke, and Emilio Rivera, 30, of Springfield, were each charged by criminal complaint with one count of interference with commerce by robbery and aiding and abetting. Rivera and Aldeco were arrested today and will appear in federal court in Springfield today at 2:00 p.m.
According to court documents, between Oct. 25, 2018, and Nov. 14, 2018, there were at least nine armed robberies of convenience stores located in Holyoke, Chicopee, Florence, West Springfield, and Agawam. Investigations into the robberies led law enforcement to determine that the same two men were involved in many of the robberies. During each of the robberies, a suspect brandished a distinctive long-barreled, black firearm-type object, and during at least one of the robberies, the suspect threatened to “come back and kill” the store clerk if the clerk called the police.
The charge of interference with commerce by robbery provides for a sentence of no greater than 20 in prison, up to three years of supervised release, and a fine of up to $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 and Lawrence Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement. The West Springfield, Holyoke, Agawam, Chicopee, Northampton, and Springfield Police Departments provided valuable assistance to the investigation. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Members of Heroin Trafficking Group Each Sentenced to at Least a Decade in Federal PrisonRead the Press Release
Two men who worked with each other and others to sell heroin throughout the Cedar Rapids area, were sentenced on November 19, 2018, to lengthy federal prison terms.
Garland Lightfoot, age 28, and Rolando Brown, age 30, both from Chicago, Illinois, received the prison sentences after their guilty pleas to heroin-related crimes. Lightfoot pled guilty on June 25, 2018, to the distribution of heroin after a prior drug felony conviction, and was sentenced to over fifteen years in prison. Brown received a sentence of ten years in prison after his June 19, 2018, guilty plea to conspiracy to distribute 100 grams or more of heroin near a protected location after a prior drug felony conviction.
According to sentencing documents and information disclosed during the sentencing hearing, Lightfoot and Brown were involved with a group of heroin dealers from at least February 2018 through April 2018. During that time, the group had at least eighty customers and made, on average, twenty sales of heroin per day. One additional member of this group, Eddy Watt, was previously sentenced to more than five years’ imprisonment.
Lightfoot and Brown were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Lightfoot was sentenced to 188 months’ imprisonment followed by a six-year term of supervised release. Brown was sentenced to 120 months’ imprisonment, and must serve an eight-year term of supervised release following his prison term. There is no parole in the federal system. Lightfoot and Brown are both being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-42. The case file number for Eddy Watt is 18-CR-43.
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Two Dallas Area Clinic Workers Charged in $5.9 Million Health Care Fraud SchemeRead the Press Release
A federal grand jury indicted two clinic workers yesterday for their roles in a scheme involving approximately $5.9 million in allegedly fraudulent Department of Labor claims for unprovided drug screening and improperly coded physical therapy and report writing services.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, Special Agent in Charge Monte A. Cason of the Department of Justice Office of the Inspector General (DOJ- OIG) Dallas Field Office, Special Agent in Charge Christopher Cave of the U.S. Postal Service Office of Inspector General (USPS-OIG) Southern Area Field Office, and Special Agent in Charge Steven Grell of the U.S. Department of Labor Office of Inspector General (DOL-OIG) Dallas Region, made the announcement.
Melissa Sumerour, 47, Waco, Texas and Latosha Morgan, 41, of Dallas, Texas were each indicted on one count of conspiracy to commit health care fraud.
According to the indictment, from January 2011 to March 2017, Sumerour, Morgan and their co-conspirators allegedly engaged in an “upcoding” scheme to bill DOL for more expensive services than those that were actually performed, if any. The defendants allegedly defrauded DOL of approximately $5.9 million through fraudulent worker’s compensation claims. The indictment alleges that Sumerour and Morgan worked at clinics in Temple and Fort Worth, Texas, respectively, which treated almost exclusively DOL patients and that they routinely billed for higher reimbursable services in order to earn bonuses based on the percentage that their clinics billed.
The charges in the indictment are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The DOJ-OIG, USPS-OIG and DOL-OIG investigated the case. Assistant Chief Adrienne Frazior of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and the U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Three Ohio Men Plead Guilty in Case Involving Sexual Abuse of ToddlersRead the Press Release
COLUMBUS, Ohio – All three defendants in a child pornography case have pleaded guilty in U.S. District Court.
David E. Fairchild, 45, of Kirkersville, Ohio pleaded guilty today. Jesse G. Szuba, 31, of Newark, Ohio, pleaded guilty pleaded guilty in late August. Mike Allen, 36, of Heath, Ohio pleaded guilty on October 30.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Dallas Baldwin, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), and other members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the pleas entered into before U.S. District Judge Michael H Watson.
The three men were charged in May 2018 in a second superseding indictment that was unsealed in late October.
According to court documents, in January 2018, the Franklin County ICAC Task Force received a CyberTip from the National Center for Missing and Exploited Children (NCMEC) regarding a video depicting child sexual abuse. The video was uploaded to Google from the username “David TwistedBottomFreak Fairchild” and depicted an adult male anally penetrating a toddler-aged child.
Fairchild sexually abused a female victim, born in 2016, and created child pornography involving the victim.
Likewise, Szuba attempted to produce child pornography involving a boy born in 2014.
Szuba and Fairchild met on Craigslist and communicated with each other about sexually abusing the toddlers. During their communications, they exchanged child pornography files and discussed plans to engage in various sex acts with each other and the victims.
Further, Szuba suggested other sex acts that Fairchild perpetrate against the female victim and asked Fairchild to send Szuba pictures or videos of that abuse.
In response to watching a video of Fairchild sexually abusing the toddler girl, Szuba messaged Fairchild that he “liked” the video “espically [sic] when she started whimpering.” Between January 26 and January 31, 2018, Szuba repeatedly requested, and Fairchild repeatedly sent, images and videos depicting sexual abuse of the female toddler.
Fairchild sent child pornography files to Allen, as well.
Fairchild pleaded guilty to conspiring to produce child pornography, a federal crime punishable by a range of 15 to 30 years in prison and committing the offense while required to register as a sex offender, which carries a mandatory 10-year sentence consecutive to any other sentence. Szuba pleaded guilty to advertising for child pornography, which is also punishable by a range of 15 to 30 years in prison. Allen pleaded guilty to receiving child pornography, which carries a potential sentence of five to 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the Franklin County ICAC Task Force, HSI, FBI and Ohio Attorney General’s Bureau of Criminal Investigation (BCI), as well as Assistant United States Attorneys Heather A. Hill and Jonathan J.C. Grey, who are prosecuting the case.
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Tennessee man sentenced to more than 8 years for receiving child pornography from Louisiana minorRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a Tennessee man was sentenced Tuesday to eight years in prison for receiving sexually explicit images from a Louisiana minor.
Dustin Ray Spears Sr., 28, of Athens, Tennessee, was sentenced by U.S. District Judge Dee. D. Drell on one count of receiving child pornography. He was also sentenced to 10 years of supervised release and is required to register as a sex offender. According to the August 7, 2018 guilty plea, Spears began conversing online in June of 2017 with a 15-year-old minor female from Louisiana. In October of 2017, he traveled to northern Louisiana and had sexual intercourse with the minor. After learning of the relationship, the female’s sister informed authorities. Law enforcement agents then searched Spears’ phone and found sexually explicit images. After reviewing email and online chat messages, agents determined that Spears had enticed the minor to send images and video of herself.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Homeland Security Investigations and the Winn Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.
Sumrall Man Sentenced to Nearly 12 Years in Prison for Illegally Possessing Firearms and an Unregistered SilencerRead the Press Release
Hattiesburg, Miss. - Asa Jefferson Sanford, Jr., 61, of Sumrall, was sentenced yesterday by U.S. District Judge Keith Starrett to serve a total of 140 months in federal prison, followed by 3 years of supervised release, for being a felon in possession of firearms and possessing a silencer which was not registered to Sanford in the National Firearms Registration and Transfer Record, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sanford was also ordered to pay a $10,000 fine.
On July 20, 2015, law enforcement officers executed state search warrants on Sanford’s vehicle and home. During the search, state and federal agents seized numerous firearms and ammunition in Sanford’s possession, as well as an unregistered silencer. Sanford has six prior felony convictions.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jefferson Davis County Sheriff’s Office, and the Drug Enforcement Administration Task Force. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
Stroudsburg Man Indicted on Child Pornography ChargesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daniel Palmitessa, age 33, of Stroudsburg, Pennsylvania, was indicted on November 20, 2018, by a federal grand jury on child pornography charges.
According to United States Attorney David J. Freed, the indictment alleges that Palmitessa produced and possessed images of child pornography and attempted to entice two minors to engage in sexual activity.
The case was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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 this offense is life 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.
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Sting Operation Nabs Spa Proprietor Mongering Illicit SexRead the Press Release
Following a sting operation at a Dallas hotel earlier this month, law enforcement liberated dozens of women sold for sex, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox. This week, a federal grand jury indicted Helen Kim – the alleged proprietor of the prostitution ring – on racketeering charges.
“It takes a lot of coordination to ensure an operation like this goes without a hitch. I’m proud of the way law enforcement came together to fight for these young women,” said Nealy Cox. “The defendant’s willingness to demean women for financial gain is sickening. We cannot and will not allow this type of behavior to go unchecked in North Texas.”
More than 50 officers from the Dallas Police Department, the Texas Department of Public Safety, and Homeland Security Investigations participated in the Nov. 1 undercover operation. Agents, posted at the hotel bar and in rooms upstairs, posed as out-of-town businessmen prepared to pay for illicit sex.
According to the indictment, Ms. Kim, 58, had agreed to provide dozens of women for that very purpose.
In earlier conversations with a confidential informant and an undercover Dallas Police Department detective, Ms. Kim and her 36-year-old son allegedly negotiated private sexual liaisons with 20 to 25 women at a rate of $2,000 each, for a total of at least $40,000. The pair promised the “girlfriend experience,” and even allowed the CI and UD to meet several of the women at a local Sushi bar.
During another meeting at a nearby Starbucks, Ms. Kim allegedly accepted an upfront payment of $5,000. She insisted the men should not talk publicly about the affair.
“The way this is set up,” her son told the undercover officer, “it could be considered human trafficking.”
At the Nov. 1 sting, Ms. Kim accepted the remainder of the cash, paid in marked bills, and was taken into custody shortly thereafter. Several of the women in her employ were taken to Mosaic House, a local shelter for women fleeing human trafficking. Many had been living at her purported “spas,” Pink One and Illusion, impelled to cater to customers at all times of the day and night.
If convicted, Kim faces up to five years in federal prison. Prosecutors have seized assets from her home and massage parlors.
An Indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law. Assistant U.S. Attorneys Ryan Raybould and Cara Foos Pierce are prosecuting the case.
At the Nov. 1 sting, Ms. Kim accepted the remainder of the cash, paid in marked bills, and was taken into custody shortly thereafter. Several of the women in her employ were taken to Mosaic House, a local shelter for women fleeing human trafficking. Many had been living at her purported “spas,” Pink One and Illusion, impelled to cater to customers at all times of the day and night.
If convicted, Kim faces up to five years in federal prison. Prosecutors have seized assets from her home and massage parlors.
An Indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law. Assistant U.S. Attorneys Ryan Raybould and Cara Foos Pierce are prosecuting the case.
Saratoga County Man Admits Machine Gun Possession and Possessing Handguns in Furtherance of a Drug Trafficking CrimeRead the Press Release
ALBANY, NEW YORK – Justin W. May, age 36, of Edinburg, New York, pled guilty today to possessing a machine gun, possessing handguns in furtherance of a drug trafficking crime, and manufacturing marijuana.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ashan M. Benedict of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Office; and New York State Police Superintendent George P. Beach II.
On April 12, 2016, the New York State Police responded to a call for shots fired on Fox Hill Road in Edinburg. Upon arrival, one individual was immediately taken into custody, but the second shooter, later identified as May, was not visible. In response, State Police members looked around May’s property and observed a marijuana grow operation, along with an AR-15-type weapon.
May later returned home and was taken into custody. He possessed two handguns in his vehicle. The State Police executed a search warrant on the property and found marijuana plants in various stages of growth, approximately 6 pounds of processed marijuana, two semi-automatic rifles, and other firearms.
Further ATF examination of one of the rifles, an AR-15 type, .300 Blackout caliber rifle, concluded that the hammer had been modified to allow the firearm to fire automatically, as a machine gun. May admitted that he knew the Blackout rifle, as modified, was a machine gun, and that he possessed two handguns to protect his marijuana grow operation and drug money.
May faces at least 5 years and up to life in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 2 years when sentenced by United States District Judge Mae A. D’Agostino on March 25, 2019. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the ATF and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Rockville Man Who Posed as a Modeling Agent to Obtain Sexually Explicit Images of Minor Female Victims Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
Greenbelt, Maryland – Stephen McGrath, age 44, of Rockville, Maryland, pleaded guilty on November 20, 2018, to federal charges of coercion and enticement of a minor to engage in sexual activity in order to produce child pornography, and possession of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to McGrath’s plea agreement, between June 16 and October 9, 2017, McGrath used Internet-based chat applications “MeetMe” and “KIK” to communicate with six minor female victims, ranging in age from 12 to 16 years old. In his communications with the victims, McGrath, posing as a female modeling agent, confirmed the ages of the victims and requested photographs, including nude and sexually explicit images, which the victims then sent to McGrath as part of their “modeling evaluation.” McGrath also admitted that he distributed sexually explicit images of Victim 6, a 14-year-old girl, to two of her male friends, whose account information he had requested from Victim 6.
Subscriber information for the accounts used to communicate with Victim 1 showed that the user connected to each account through the same IP address, which was assigned to McGrath in Rockville. Law enforcement agents executed a federal search warrant at McGrath’s residence on October 13, 2017, and seized his cellular phone. The phone had an application for password-protected digital storage. McGrath supplied the password, which revealed folders within the application labeled with female names and containing pictures and videos constituting more than 600 images of child pornography, including images of the victims described above. The KIK application was also found on the phone as well as numerous chat conversations with minor females.
As a result of his guilty plea, McGrath will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
McGrath faces a mandatory minimum sentence of 10 years in prison and a maximum of life in prison for enticement of a minor in order to produce child pornography; and a maximum of 10 years in prison for possession of child pornography. U.S. District Judge Paul W. Grimm has scheduled sentencing for March 29, 2019, at 1:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI-Baltimore and the Maryland State Police for their work in the investigation and thanked the Montgomery County Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorney Joseph R. Baldwin, who is prosecuting the federal case.
Reserve Man Sentenced to 83 Months in Prison for Crack ConspiracyRead the Press Release
NEW ORLEANS, – U.S. Attorney Peter G. Strasser announced that MICHAEL SANDERS, age 37, of Reserve, was sentenced on Wednesday, November 14, 2018 for charges relating to narcotics trafficking.
SANDERS pleaded guilty on February 1, 2018, to conspiring with others to distribute cocaine base (“crack”).
Judge Jane Triche Milazzo sentenced SANDERS to 83 months in the Bureau of Prisons, as well as 3 years of supervised release following his term of imprisonment.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office. Assistant U.S. Attorneys Nicholas D. Moses and Edward Rivera are in charge of the prosecution.
Project Huntington Update: Two More Operation Saigon Sunset Defendants Sentenced to Prison for Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – Two more Operation Saigon Sunset defendants have been sentenced to prison in connection with their roles in the Peterson drug trafficking organization (DTO), announced United States Attorney Mike Stuart. Stuart praised the joint investigation conducted by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
“Bringing an end to the Peterson drug network which had been operating in Huntington for some time signaled change and hope in Huntington,” said United States Attorney Mike Stuart. “We will protect every community throughout southern West Virginia by eradicating drug dealers that prey on our good citizens.”
Luther Peterson, also known as “Mook,” 24, from Detroit, was caught selling heroin in October 2017 and later pled guilty to an indictment charging him with conspiracy to distribute heroin. Peterson was sentenced to 36 months in prison.
Peterson admitted that between October 2017 and April 2018 he conspired with Willie Peterson and Manget Peterson to sell heroin in the Huntington area. As part of the plea agreement, Peterson admitted to distributing heroin to a confidential informant in October 2017.
Terrell Redd, 43, of Huntington, was caught selling heroin in February 2018, and pled guilty to an indictment charging him with conspiracy to distribute heroin. Redd admitted that in January and February 2018 he conspired with Manget Peterson and Charles Graves, Jr. to sell heroin in the Huntington, WV area. As part of the plea agreement, Redd admitted to distributing heroin to a confidential informant in February 2018.
Assistant United States Attorney Stephanie S. Taylor handled the prosecutions. United States District Judge Robert C. Chambers imposed the sentences.
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Owners of Home Healthcare Company Plead Guilty to Tax FraudRead the Press Release
BOSTON – The co-owners of a Boston-area home healthcare company pleaded guilty in federal court in Boston yesterday for underreporting income to the IRS resulting in over $1 million in losses.
Hannah Holland, 51, of Quincy, and Sheila O’Connell, 51, of North Weymouth, pleaded guilty to an Information charging them with one count of conspiracy to defraud the United States and three counts of aiding and assisting in the preparation of false tax returns. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing to Feb. 13, 2019.
According to court documents, Holland and O’Connell co-owned and operated Erin’s Own Home Healthcare Inc. (“Erin’s Own”), a home healthcare business. Between 2010 and 2014, Holland and O’Connell cashed over $3.5 million of Erin’s Own business checks through nominee bank accounts controlled by an unnamed individual. During this time period, Holland also personally cashed over $77,000 of Erin’s Own business receipts. None of these funds were ever reported to the IRS or accounted for in the company’s tax filings. Instead, Holland and O’Connell provided their tax preparer with a limited set of the financial records that did not cover the substantial amounts of business funds Holland and O’Connell diverted. As a result of the underreporting, Erin’s Own caused a loss of $1,126,112 to the IRS.
The conspiracy charge provides for a sentence of no greater than five years in prison, three years supervised release, and a fine $250,000. The charge of aiding and assisting in the preparation of false tax returns provides for a sentence of no greater than three years in prison, one year 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 and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities and Financial Fraud Unit, and Trial Attorney Brittney Campbell of the Department of Justice’s Tax Division are prosecuting the case.
Owners of Home Healthcare Company Plead Guilty to Tax FraudRead the Press Release
The co-owners of a Boston-area home healthcare company pleaded guilty in federal court yesterday for tax crimes resulting in over $1 million in losses, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Andrew E. Lelling for the District of Massachusetts.
Hannah Holland, 51, of Quincy, Massachusetts, and Sheila O’Connell, 51, of North Weymouth, Massachusetts, each pleaded guilty to one count of conspiracy to defraud the United States and three counts of aiding and assisting in the preparation of false tax returns.
According to court documents, Holland and O’Connell co-owned and operated Erin’s Own Home Healthcare Inc. (Erin’s Own), a home healthcare business. Between 2010 and 2014, Holland and O’Connell directed another individual to cash over $3.5 million of Erin’s Own business checks through nominee bank accounts. During this time, Holland also personally deposited or cashed over $77,000 of Erin’s Own business checks. None of these funds were reported to the Internal Revenue Service (IRS) or accounted for in the company’s tax filings. Instead, Holland and O’Connell provided their tax preparer with a limited set of financial records that did not cover the substantial amounts of business funds Holland and O’Connell diverted. As a result of the underreporting, Erin’s Own caused a loss of $1,126,112 to the United States.
Sentencing is scheduled for February 13, 2019. Holland and O’Connell each face a maximum sentence of five years in prison on the conspiracy count and three years in prison on each count of aiding and assisting in the preparation of false tax returns, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Lelling commended special agents from IRS-Criminal Investigation, who are investigating the case, and Assistant U.S. Attorney Jordi de Llano, Deputy Chief of the United States Attorney’s Securities and Financial Fraud Unit, and Tax Division Trial Attorney Brittney Campbell, who are prosecuting the case. Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owner of Engineering Firms and CPA Convicted in Tax SchemeRead the Press Release
A federal jury in Honolulu, Hawaii, convicted Wagdy Guirguis and Michael Higa of conspiracy to defraud the United States yesterday, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Kenji M. Price for the District of Hawaii. In addition to the conspiracy conviction, Guirguis was also convicted of three counts of filing false corporate income tax returns, one count of failure to file a corporate income tax return, three counts of tax evasion, one count of corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue laws and one count of witness tampering. Higa was convicted of the conspiracy and one count of aiding and assisting in the preparation of a false tax return for one of Guirguis’ business entities. The convictions arise from a scheme to divert funds from Guirguis’ business entities for his own personal benefit and to avoid the payment of federal employment and income taxes.
“Employers who withhold employment taxes from their employees’ paychecks and choose to pocket those funds violate the trust of their employees and the United States,” said Principal Deputy Assistant Attorney General Zuckerman. “The Department of Justice will continue to identify and prosecute employment tax offenders, ensuring that such businesses and executives are held to account and do not gain an unfair advantage over honest employers who follow the law and pay their fair share.”
“Mr. Guirguis owed the Internal Revenue Service employment taxes and with the help of Mr. Higa, conspired to obstruct the Internal Revenue Service’s attempts to collect the tax by concealing income using a nominee entity and preparing false corporate and individual income tax returns,” said Acting Special Agent in Charge Troy Burrus. “The defendants’ actions to obstruct the Internal Revenue Service’s collection efforts are very serious. IRS-Criminal Investigation will continue to pursue employers, who collect these taxes and use the funds for personal gain.”
According to court documents and evidence presented at trial, Guirguis operated numerous engineering businesses. Higa, a certified public accountant, was the controller of these businesses. Higa also served as a nominee officer of another entity controlled by Guirguis. When the IRS determined Guirguis’ businesses owed over $800,000 in federal employment taxes and assessed a $812,000 penalty, Guirguis and Higa took various steps to place income and assets out of the IRS’ reach. For example, Guirguis and Higa used the nominee entity to fraudulently convey a condominium to Guirguis’ wife. After an IRS revenue officer began questioning Mrs. Guirguis’ sole ownership of this condominium, Guirguis and Higa instructed a bookkeeper to alter the books and records in an attempt to conceal this transaction from the IRS.
From 2001 through 2012, Guirguis and Higa also used the nominee entity to divert approximately $1.3 million from Guirguis’ businesses for Guirguis’ personal use. As a result of their diversion and concealment, Guirguis’ 2010 through 2012 returns omitted $553,000 in income, resulting in a tax deficiency of $165,000.
In addition, Guirguis filed corporate income tax returns that fraudulently omitted millions of dollars of gross receipts. For one of his businesses, Guirguis simply did not file a corporate tax return, thereby not reporting more than $1.7 million in gross receipts.
After the IRS levied the bank accounts of one business, Guirguis diverted incoming funds owed to that business, directing payment of the funds to a different business. Guirguis also instructed a tenant to disregard IRS collection notices and pay rent directly to him rather than to the IRS. Moreover, Guirguis made false and misleading statements to IRS revenue officers, all in an effort to obstruct the IRS’ efforts to collect on the taxes he and his companies owed.
To impede the criminal investigation into his tax violations, Guirguis falsely told an employee, who had testified before the grand jury, that he did not know about the false backdating done in the books of the nominee entity, and asked the employee to sign a false statement to that effect.
Guirguis and Higa face a maximum sentence of five years in prison each on the conspiracy counts. Guirguis faces a maximum sentence of five years on each of the tax evasion counts, three years in prison on each of the counts involving false tax returns and corrupt endeavors, and one year in prison for the count of failure to file a tax return, as well as a period of supervised release, restitution, and monetary penalties. Guirguis faces an additional maximum 20 year sentence for witness tampering. In addition to the maximum sentence of five years in prison on the conspiracy count, Higa faces a maximum sentence of three years on the aiding and assisting the filing of a false tax return count.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Price commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Tax Division Senior Litigation Counsel John Sullivan and Trial Attorney Anahi Cortada, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owner of Engineering Firm and CPA Convicted in Tax SchemeRead the Press Release
HONOLULU – A federal jury in Honolulu, Hawaii, convicted Wagdy Guirguis and Michael Higa of conspiracy to defraud the United States yesterday, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney for the District of Hawaii Kenji M. Price. In addition to the conspiracy conviction, Guirguis was also convicted of three counts of filing false corporate income tax returns, one count of failure to file a corporate income tax return, three counts of tax evasion, one count of corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue laws and one count of witness tampering. Higa was convicted of the conspiracy and one count of aiding and assisting in the preparation of a false tax return for one of Guirguis’ business entities. The convictions arise from a scheme to divert funds from Guirguis’ business entities for his own personal benefit and to avoid the payment of federal employment and income taxes.
“Employers who withhold employment taxes from their employees’ paychecks and choose to pocket those funds violate the trust of their employees and the United States,” said Principal Deputy Assistant Attorney General Zuckerman. “The Department of Justice will continue to identify and prosecute employment tax offenders, ensuring that such businesses and executives are held to account and do not gain an unfair advantage over honest employers who follow the law and pay their fair share.”
“Mr. Guirguis owed the Internal Revenue Service employment taxes and with the help of Mr. Higa, conspired to obstruct the Internal Revenue Service’s attempts to collect the tax by concealing income using a nominee entity and preparing false corporate and individual income tax returns,” said Acting Special Agent in Charge Troy Burrus. “The defendants’ actions to obstruct the Internal Revenue Service’s collection efforts are very serious. IRS–Criminal Investigation will continue to pursue employers, who collect these taxes and use the funds for personal gain.”
According to court documents and evidence presented at trial, Guirguis operated numerous engineering businesses. Higa, a certified public accountant, was the controller of these businesses. Higa also served as a nominee officer of another entity controlled by Guirguis. When the IRS determined Guirguis’ businesses owed over $800,000 in federal employment taxes and assessed a $812,000 penalty, Guirguis and Higa took various steps to place income and assets out of the IRS’ reach. For example, Guirguis and Higa used the nominee entity to fraudulently convey a condominium to Guirguis’ wife. After an IRS revenue officer began questioning Mrs. Guirguis’ sole ownership of this condominium, Guirguis and Higa instructed a bookkeeper to alter the books and records in an attempt to conceal this transaction from the IRS.
From 2001 through 2012, Guirguis and Higa also used the nominee entity to divert approximately $1.3 million from Guirguis’ businesses for Guirguis’ personal use. As a result of their diversion and concealment, Guirguis’ 2010 through 2012 returns omitted $553,000 in income, resulting in a tax deficiency of $165,000. In addition, Guirguis filed corporate income tax returns that fraudulently omitted millions of dollars of gross receipts. For one of his businesses, Guirguis simply did not file a corporate tax return, thereby not reporting more than $1.7 million in gross receipts.
After the IRS levied the bank accounts of one business, Guirguis diverted incoming funds owed to that business, directing payment of the funds to a different business. Guirguis also instructed a tenant to disregard IRS collection notices and pay rent directly to him rather than to the IRS. Moreover, Guirguis made false and misleading statements to IRS revenue officers, all in an effort to obstruct the IRS’ efforts to collect on the taxes he and his companies owed.
To impede the criminal investigation into his tax violations, Guirguis falsely told an employee, who had testified before the grand jury, that he did not know about the false backdating done in the books of the nominee entity, and asked the employee to sign a false statement to that effect.
Guirguis and Higa face a maximum sentence of five years in prison each on the conspiracy counts. Guirguis faces a maximum sentence of five years on each of the tax evasion counts, three years in prison on each of the counts involving false tax returns and corrupt endeavors, and one year in prison for the count of failure to file a tax return, as well as a period of supervised release, restitution, and monetary penalties. Guirguis faces an additional maximum 20 year sentence for witness tampering. In addition to the maximum sentence of five years in prison on the onspiracy count, Higa faces a maximum sentence of three years on the aiding and assisting the filing of a false tax return count.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Price commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Tax Division Senior Litigation Counsel John Sullivan and Trial Attorney Anahi Cortada, who prosecuted the case.
Operation California Dreamin Nets Richmond Cocaine TraffickerRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today after being caught in a law enforcement controlled delivery operation involving the transportation of 9 kilograms of cocaine from Los Angeles to Richmond.
“Brown planned on distributing at least 9 kilograms of dangerous narcotics onto the streets of Richmond and beyond,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Investigating and prosecuting drug traffickers continues to be a top priority, and I want to thank our local, state, and federal partners for their outstanding work on this case.”
According to court documents, on August 6, Frankie Brown, 34, provided a duffle bag containing 9 kilograms of cocaine to an individual in Los Angeles for delivery to him in Richmond. On August 7, Texas Department of Public Safety law enforcement officials stopped this individual in Amarillo, Texas, and seized the cocaine from his possession. On August 10, DEA agents arrested Brown when he took custody of what he believed to be his 9 kilograms of cocaine and $6,375.
Brown pleaded guilty to attempted possession with the intent to distribute 5 kilograms or more of cocaine and faces a mandatory minimum penalty of 10 years and up to life in prison when sentenced on Feb. 21, 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.
Operation California Dreamin was investigated as part of the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea. Assistant U.S. Attorney Erik S. Siebert is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-104.
Oakland Man Sentenced to More Than 10 Years in Prison for Sex Trafficking of A MinorRead the Press Release
OAKLAND – Kaybaun Rodgers was sentenced today to 121 months in prison for sex trafficking of a minor, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John Bennett. The sentence was handed down by the Honorable Phyllis J. Hamilton, Chief United States District Judge.
Rodgers, 26, whose last known address was in Oakland, Calif., pleaded guilty to the charge on September 5, 2018. According to the plea agreement, between August 28, 2016, and February 19, 2017, he used the website Backpage.com to advertise the availability of a minor for commercial sex acts. Rodgers posted at least 46 advertisements depicting and describing the minor victim. Rodgers also admitted that from August 28, 2016, to April 20, 2018, he collected proceeds from the minor which were derived from the commercial sex acts in which the minor participated. For example, on April 20, 2018, Rodgers instructed the minor to send him $50 via Western Union after she had received $200 in exchange for a commercial sex act.
Rodgers further admitted that on October 24, 2017, he went to a hotel room where he made a video recording of the minor and a male who had solicited a commercial sex act through one of the Rodgers’s Backpage.com advertisements. In the recording, Rodgers confirmed with the minor that she had received $120 for performing the sex act. Rodgers then attempted to extort additional money from the man by threatening to post the video on Facebook unless the man paid more money.
Rodgers also used the minor to produce visual depictions of sexually explicit conduct and used his cellular telephone to record videos depicting the minor performing sex acts on himself.
On August 2, 2018, Rodgers was charged in a federal information with one count of sex trafficking of a minor, in violation of 18 U.S.C. §§ 1951(a)(1), (a)(2) and (b)(2). Pursuant to his plea agreement, Rodgers pleaded guilty to the charge.
In addition to the prison term, Chief Judge Hamilton sentenced the defendant to a 20-year period of supervised release. Rodgers also was ordered to register as a sex offender. The defendant has been in custody since his arrest in April of 2018 and will begin serving his sentence immediately.
Assistant U.S. Attorney Vanessa Ann Baehr-Jones is prosecuting the case with the assistance of Michelle Alter. The prosecution is the result of an investigation by the Federal Bureau of Investigation with assistance from the Union City Police Department.
Norfolk Man Charged with ArsonRead the Press Release
United States Attorney, Joe Kelly, announced the unsealing of a criminal complaint charging Joseph Lloyd James, age 47 of Norfolk, Nebraska, with arson in connection with the burning of a car found on the Santee Sioux Indian reservation. James’ arrest occurred on November 19, 2018, and was made during the investigation into the death of Phyllis Hunhoff of Yankton, South Dakota. It is alleged James set fire to Hunhoff’s car. The maximum punishment for the offense is 25 years imprisonment, a $250,000 fine, a five year term of supervised release, and a $100 special assessment. James is scheduled for his initial appearance before United States Magistrate Judge Susan M. Bazis on November 21, 2018, at 1:30 p.m.. As this matter concerns an ongoing investigation, the United States Attorney’s Office is unable to provide additional comment at this time.
This case is being investigated by the Federal Bureau of Investigation, the Nebraska State Patrol, the Knox County Sheriff’s Office (Nebraska), the Santee Sioux Nation Police Department, the Lincoln Police Department (Nebraska), the Nebraska State Fire Marshal, the Norfolk Police Department (Nebraska), the Niobrara Police Department (Nebraska), and the Yankton County Sheriff’s Office (South Dakota).
A complaint is a formal accusation of conduct, not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.