Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 15 October 2018
Versailles Man Pleads Guilty to Illegally Possessing Nine Firearms Stolen from Pawn ShopRead the Press Release
JEFFERSON CITY, Mo. – A Versailles, Mo., man who stole nine firearms during the burglary of a local pawn shop pleaded guilty in federal court today for illegally possessing the firearms.
Joseph Marin Melendez, 47, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to being a felon in possession of firearms.
By pleading guilty today, Melendez admitted that he burglarized Ozark Gun & Pawn in Versailles during the early morning hours of July 22, 2016. Morgan County deputies recognized Melendez on the surveillance video. Melendez used a crowbar to pry open the front door of the store, walked behind the counter, grabbed several firearms then left the store.
Law enforcement officers executed a search warrant at Melendez’s residence. They recovered a Glock handgun with an Ozark Gun & Pawn price tag attached inside a minivan parked at the residence. Inside the residence, they recovered the remaining eight stolen firearms inside a white bucket underneath a wheelbarrow outside the residence.
The firearms included a Glock 9mm semi-automatic pistol, three Glock .40-caliber semi-automatic pistols, a Glock .357-caliber semi-automatic pistol, three Sturm Ruger .357-caliber magnum revolvers, and a Taurus .357-caliber magnum revolver.
Melendez is a convicted felon, and therefore prohibited by federal law from possessing any firearms or ammunition.
Under federal statutes, Melendez is subject to a sentence of up to 10 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 Jim Lynn. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Morgan County, Mo., Sheriff’s Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.
Valley Springs Man Sentenced to 25 YearsRead the Press Release
FRESNO, Calif. — Nicholas Carroll Watkins, 30, of Valley Springs, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to 25 years in prison, followed by 10 years of supervised release for receiving material involving the sexual exploitation of minors, U.S. Attorney McGregor W. Scott announced. Watkins will also be required to register as a sex offender.
According to a criminal complaint and sentencing documents, Watkins used Kik Messenger and SayHi, which are messaging applications based outside the United States, to engage in sexually explicit communications with other adults as well as numerous minor females. Watkins discussed his sexual interest in children and often solicited and received sexually explicit images directly from minors.
This case was the result of an investigation by the Miami, Florida and Stockton, California offices of the Federal Bureau of Investigation. Assistant U.S. Attorney David Gappa prosecuted 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
United States Attorney's Office for the Western District of Michigan Honored by Department of Defense for Support of Employees Serving in the Guard and ReserveRead the Press Release
GRAND RAPIDS, MICHIGAN – Michigan Employer Support of the Guard and Reserve (ESGR), a Department of Defense office, joined U.S. Attorney Andrew B. Birge in announcing today that the U.S. Attorney’s Office for the Western District of Michigan was honored with a Patriot Award in recognition of its extraordinary support of its employees serving in the United States military Reserve Components. U.S. Attorney Birge accepted the award on behalf of the office.
According to Paul Ryan, Michigan ESGR State Chair, “the Patriot Award was created by ESGR to publicly recognize individuals who provide outstanding patriotic support and cooperation to their employees, who like the citizen warriors before them, have answered their nation’s call to serve. U.S. Attorney Andrew Byerly Birge and the U.S. Attorney’s Office for the Western District of Michigan were nominated for being highly supportive of Reserve Service. Supportive supervisors are critical to maintaining the strength and readiness of the nation’s Guard and Reserve units.”
U.S. Attorney Birge said, “I appreciate the sense of mission, focus and unique skills Service members bring to my office. At the same time, I understand that supportive employers are critical to maintaining the strength and readiness of the nation’s Guard and Reserve units. We’ve embraced that supportive role here.”
ESGR, a Department of Defense office, seeks to foster a culture in which all employers support and value the employment and military service of members of the National Guard and Reserve in the United States. ESGR facilitates and promotes a cooperative culture of employer support for National Guard and Reserve service by developing and advocating mutually beneficial initiatives, recognizing outstanding employer support, increasing awareness of applicable laws and policies, resolving potential conflicts between employers and their service members, and acting as the employers’ principal advocate within the Department of Defense. Paramount to ESGR’s mission is encouraging employment of Guardsmen and Reservists who bring integrity, global perspective and proven leadership to the civilian workforce.
END
United States Attorney Robert J. Higdon, Jr. Announces Progress in Making Our Communities Safer Through Project Safe Neighborhoods and the "Take Back North Carolina" InitiativeRead the Press Release
RALEIGH – One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Throughout the past year, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
“During the course of my over 25 years as a federal prosecutor, I have seen the dramatic impact that PSN can have on reducing violent crime in our communities. Following the Attorney General’s lead, we directed the revitalization of the PSN program in this District and have fully staffed it with aggressive and skilled prosecutors who can take on these violent criminals, and those who would victimize our citizens and local businesses. To reduce violent crime and remove drug traffickers from our neighborhoods, our efforts must be real on the streets of the cities, towns, and counties across the District and cannot just be a reemphasis from Raleigh. As such, in March of this year, we implemented the Take Back North Carolina Initiative to mold our PSN program to address the specific violent crime problems that exist in eastern North Carolina.”
Take Back North Carolina is a partnership between the United States Attorney’s Office, District Attorney’s offices, and federal, state and local law enforcement agencies across the 44 counties of the district to combat violent crime, drug trafficking and crimes against law enforcement. This partnership includes 44 Sheriffs, 188 Police Departments, and 15 elected District Attorneys, and utilizes the regional assignment of Assistant United States Attorneys, strategic targeting, decentralized case intake authority, and public messaging. Regional prosecution teams have been given the responsibility of working directly with law enforcement on a sustained basis to reduce violent crime by targeting those organizations and individuals responsible for the increased violent crime rates and for introducing the poison of illegal drugs into those particular communities. Take Back North Carolina allows the entire district to have the full range of enforcement tools available through the federal court system, allows the regional teams to quickly route matters to federal court when prosecution in that venue would deliver the most significant impact, and protects and supports law enforcement officers who face unacceptable threat levels as they enforce the law.
As we celebrate the one-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:
Enforcement Actions
- Warren T. Baker was sentenced to 408 months in federal prison in August 2018 for his armed robbery of a Starbucks in Fayetteville, NC, during which he confronted employees at gunpoint. Baker had a prior federal conviction for armed bank robbery. Read More
- Kelly Shadrome Anderson was sentenced to 120 months in federal prison in September 2018 after pleading guilty to being a felon in possession of a firearm. Fleeing an altercation during which he fired a gun in Wilson, NC, Anderson took a 4 year old child hostage inside a nearby house. Anderson had prior felony convictions for selling cocaine, breaking and entering, and assault on a female. Read More
- Charlie O’Bryant Terry was sentenced to 240 months in federal prison in July 2018 for obstruction of justice and illegal possession of a firearm. Terry assaulted and robbed a couple at gunpoint in Vance County – placing a pistol in one victim’s mouth, and cutting the other victim’s head by repeatedly hitting him with the firearm. Terry had a prior federal conviction for being a felon in possession of a firearm. Read More
- Joseph Luther Lewis was sentenced to 151 months in federal prison in August 2018 for possession of a firearm by felon and possession of a stolen firearm. After having a gunfight with a drug dealer in Fayetteville, NC, Lewis traveled to Robeson County and forcibly abducted his girlfriend at gunpoint – kicking and punching her when she attempted to escape. Lewis had prior felony convictions for possession with the intent to manufacture, sell, and deliver marijuana and conspiracy to commit robbery with a dangerous weapon. Read More
- David Kareem Turpin was sentenced to 240 months in federal prison in August 2018 for Hobbs Act robbery and brandishing a firearm in furtherance of a crime of violence. Turpin robbed Walmart, Food Lion, and Family Dollar stores in Raleigh, NC during which he brandished a firearm and abducted and threatened employees. Read More
- John Devere Battle was sentenced to 1,272 months in federal prison this month for robbing several convenience stores in Cary, NC, as well as his role in committing a home invasion during which the victims were robbed, tied up, pistol-whipped, threatened, and forced to withdraw money from a bank. Battle had prior felony convictions for breaking and entering and being a felon in possession of a firearm. Read More
Community Partnerships
- As a complement to the Take Back North Carolina enforcement strategy, the United States Attorney’s Office works with law enforcement to develop the most effective public messaging strategies for each community. Over the past year, this has included reentry programs; community engagement movie nights; school-based educational programs for children about the prevention of gun violence and bullying; and, call-in meetings with individuals identified to be at-risk of committing future violent acts. These meetings are conducted in partnership with federal, state and local law enforcement; community-based social service providers; business leaders; and the faith-based community to communicate a deterrence message by describing focused enforcement efforts and to link those individuals to services to address the root causes of violence and recidivism.
- Operation Ceasefire administered by Fayetteville Police Department under the PSN program in partnership with the United States Attorney’s Office, utilizes a three-tiered approach of prevention, intervention, and suppression to reduce gun and gang violence with goal of improving the quality of life for all residents of Cumberland County. Read more. In the last year, through Operation Ceasefire over 100 offenders participated in the above described call-in meetings; over 2,000 people attended movie nights engaging with law enforcement and community leaders; and, over 3,300 students participated in the Educating Kids about Gun Violence Program in Cumberland County schools. Read More
Improvements to Community Safety
- The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.
- The preliminary information we have for 2018 gives us reason for optimism that our efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago.
- Here in the Eastern District of North Carolina, we are seeing direct results of the PSN revitalization. Since the implementation of the Take Back North Carolina Initiative, our prosecutors have charged over 250 violent offenders and drug traffickers, many of whom have prior felony convictions. In addition, during this one year period, in Fayetteville, NC, homicides by use of a firearm have decreased by 23% and the number of firearms seized increased by 17%.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
United States Attorney Announces Appointment of Three New Federal ProsecutorsRead the Press Release
U.S. Attorney Erin Nealy Cox is pleased to announce the appointment of three new Assistant United States Attorneys: Jon Bradshaw, assigned to the Dallas Appellate Division, Levi Thomas, assigned to the Fort Worth Criminal Division, and Linda Requenez, assigned to the Dallas Criminal Division’s Narcotics & OCDETF section.
All three prosecutors were sworn in on October 15 before Chief U.S. District Judge Barbara M.G. Lynn.
A graduate of Texas A&M University and the University of Denver Sturm College of Law, Mr. Bradshaw joins the U.S. Attorney’s Office from the United States District Court of the Northern District of Texas, where he served as a Staff Attorney focusing on the habeas docket. He also worked as an Attorney at the United States Court of Appeals for the Third Circuit. Mr. Bradshaw’s father was a police officer for 39 years; his son shares his father’s dedication to law enforcement and public service.
Mr. Thomas, who will focus on immigration cases, formerly served as an Attorney at the U.S. Department of Homeland Security’s Immigration and Customs Enforcement (ICE) division. Before that, he served as a Law Clerk for the U.S. Court of Appeals for the Fifth Circuit under the Honorable Catharina Haynes, and for the U.S. District Court for the Eastern District of Texas under the Honorable Zack Hawthorn. He earned his undergraduate degree from Texas A&M University and his J.D. from New York University School of Law.
An alumna of the University of Texas and Texas Southern University’s Thurgood Marshall School of Law, Ms. Requenez returns to the Northern District of Texas from the Southern District of Texas, where she prosecuted a range of violent crimes. During a previous stint in Dallas, she served as an AUSA here at the U.S. Attorney’s Office and as an Assistant Criminal District Attorney for Dallas County Criminal District Attorney’s Office.
“I’m proud to have these excellent attorneys on our teams in Dallas and Fort Worth,” said Nealy Cox. “I know they will fight for justice in North Texas.”
Two illegal aliens sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Two men in the United States illegally were sentenced today for drug charges, United States Attorney Bill Powell announced.
Hsun Jung Chang, age 30, was sentenced to four months incarceration. Shougi Li, age 24, was sentenced to four months incarceration. Each pled guilty to one count of “Conspiracy to Possess with the Intent to Distribute and Distribute Marijuana” in July 2018. The men admitted to possessing marijuana in Ohio County in May 2018.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the cases on behalf of the government. The West Virginia State Police and the Ohio County Sheriff’s Office investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Two Fresno Men Plead Guilty to Firearms and Money Laundering OffensesRead the Press Release
FRESNO, Calif. — On Monday, Vonshay Robinson, 31, pleaded guilty to conspiracy to traffic firearms, U.S. Attorney McGregor W. Scott announced.
According to court documents, between November 2015 and October 2016, Robinson illegally purchased and sold firearms to others, including a .22 caliber gun he sold to an undercover agent on March 25, 2016, for $1,000.
Another defendant in a related case, Jesus Roberto Velazquez Juarez, 25, also pleaded guilty on Monday to money laundering. According to court documents, Velazquez Juarez sold firearms and methamphetamine to others, including a 9mm automatic blank pistol modified to fire live ammunition and approximately 3 grams of methamphetamine to the same customer in October 2016.
Robinson and Velazquez Juarez were arrested on November 3, 2016, along with 18 other defendants following a year-long multi-agency investigation that targeted criminal street gangs in Fresno. Other defendants also have pleaded guilty to various firearms and drug offenses, including:
Devone Johnson, 32, and Anthony Thomas, 26, pleaded guilty on August 13, 2018, to unlawfully possessing a firearms. They are scheduled to be sentenced on October 29, 2018.
Garry Sampson, 40, pleaded guilty on August 1, 2018, to unlawfully possessing a firearm. He is scheduled to be sentenced on October 22, 2018.
Raymond Jones, 61, pleaded guilty on August 6, 2018, to conspiracy to distribute and possess with intent to distribute cocaine base. He is scheduled to be sentenced on November 5, 2018.
Danny Valenzuela, 51, pleaded guilty on July 30, 2018, to conspiracy to distribute and possess with intent to distribute cocaine base. He is scheduled to be sentenced on November 5, 2018.
Stephen Hill, 28, pleaded guilty on September 25, 2017, to conspiracy to distribute and possess with intent to distribute cocaine. On December 18, 2017, Hill was sentenced to two years and eight months in prison.
Rashad Halford, 31, pleaded guilty on September 25, 2017, to conspiracy to distribute and possess with intent to distribute cocaine. On March 12, 2018, Halford was sentenced to two years and two months in prison.
These cases are the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the California Department of Justice’s Bureau of Investigation Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Fresno Police Department, the California Department of Corrections and Rehabilitation, the Fresno County District Attorney’s Office, and the California Highway Patrol Special Operations Unit (SOU). The Fresno County Sheriff’s Office, the Clovis Police Department, Fresno County Probation, and the California Highway Patrol assisted in the investigation. Assistant U.S. Attorneys Kimberly A. Sanchez and Christopher D. Baker are prosecuting the cases.
Robinson and Velazquez Juarez are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on January 7, 2019, and January 22, 2019, respectively. Robinson faces a maximum statutory penalty of 5 years in prison and a $250,000 fine. Velazquez Juarez faces a maximum statutory penalty of 20 years in prison and a $500,000 fine. The actual sentences, 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.
The Organized Crime Drug Enforcement Task Force (OCDETF) was involved in the investigation of many of these cases. The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Syndicato De Nuevo Mexico Prison Gang Associate Sentenced to 14 Years for Conviction on Racketeering and Assault ChargesRead the Press Release
ALBUQUERQUE – Mauricio Varela, 48, of Silver City, N.M., was sentenced today in federal court in Las Cruces, N.M., to 168 months of imprisonment followed by three years of supervised release for his conviction on racketeering and assault charges.
Varela and his three co-defendants, David Calbert, 42, Robert Martinez, 54, and Mario Rodriguez, 33, were charged with racketeering offenses in a four-count indictment filed in Dec. 2015. The indictment charged the four defendants with participating in a criminal organization known as the Syndicato de Nuevo Mexico (SNM) Prison Gang that engaged in acts of violence and other criminal activities, including murder, kidnapping, attempted murder, conspiracy to manufacture and distribute narcotics, and firearms trafficking. The indictment alleged that the defendants were members and associates of the SNM Prison Gang, a statewide gang operating in New Mexico prisons and in communities throughout the state. According to the indictment, the SNM Prison Gang was formed in the early 1980s at the Penitentiary of New Mexico after the prison riot in Feb. 1980, and expanded throughout the New Mexico penal system. The indictment alleged that gang members and associates are expected to remain loyal to the Gang and work to further its objectives after they have completed their prison sentences and those who do not are subject to violent forms of discipline. According to the indictment, significant goals of the SNM Prison Gang included controlling and profiting from drug trafficking both within and outside the penal system; intimidating and influencing other gangs for the purpose of expanding the network for its illegal activities; and engaging in violence to assert its gang identity and protect its territory.
The indictment charged Varela and Calbert with conspiring to murder an individual referred to as P.S. in March 2011, and with assaulting P.S. with a deadly weapon on March 14, 2011. It also charged Martinez and Rodriguez with conspiring to murder an individual referred to as A.S., in June 2011, and with assaulting A.S. resulting in serious bodily injury on June 24, 2011. The indictment charged the four defendants with committing the offenses in Santa Fe County, N.M.
On Oct. 19, 2017, Varela pled guilty to assault with a dangerous weapon in aid of the racketeering enterprise. In entering the guilty plea, Varela admitted that in 2000, while incarcerated in the New Mexico Department of Corrections, he became a member of the SNM Prison Gang and thus became engaged in racketeering activity. Varela further admitted that in March 2011, he and another SNM Prison Gang member assaulted P.S. by hitting and holding P.S. while the other SNM member stabbed P.S. with a dangerous weapon, which resulted in serious bodily injury to P.S. Varela acknowledged committing this assault because of his SNM membership and to increase his status within the Prison Gang.
Varela’s three co-defendants have previously entered guilty pleas and are awaiting sentencing.
This case was investigated by Albuquerque Division of the FBI with assistance from the New Mexico Corrections Department, New Mexico State Police, Bernalillo County Sheriff’s Office, Metropolitan Correctional Center, Albuquerque Police Department, U.S. Marshals Service, and the El Paso, Phoenix, Denver, Las Vegas and Knoxville FBI Divisions. Assistant U.S. Attorneys of the U.S. Attorney’s Office for the District of New Mexico are prosecuting the case.
Stanford Man Sentenced to 30 Months for Computer Intrusion CrimesRead the Press Release
LEXINGTON, Ky. – Colton Grubbs, 21, of Stanford, Kentucky, was sentenced to 30 months in federal prison, by United States District Judge Joseph M. Hood, for conspiracy to unlawfully access computers in furtherance of a criminal act, conspiracy to commit money laundering, and the illegal removal of property to prevent its lawful seizure.
Grubbs previously admitted to designing, marketing, and selling a software, called LuminosityLink, that Grubbs knew would be used by some customers to remotely access and control their victims’ computers without the victims’ knowledge or consent. Among other malicious features, LuminosityLink allowed Grubbs’ customers to record the keys that victims pressed on their keyboards, surveil victims using their computers’ cameras and microphones, view and download the computers’ files, and steal names and passwords used to access websites. Directly and indirectly, Grubbs offered assistance to his customers on how to use LuminosityLink for unauthorized computer intrusions through posts and group chats on websites such as HackForums.net. In his plea agreement, Grubbs admitted to selling this software for $39.99 apiece to more than 6,000 customers. These customers, and their victims, were located throughout the United States and around the world.
“Our modern society is dependent on computers, mobile devices, and the use of the internet,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “People simply have to have confidence in their ability to use these modern instruments to transact their business, privately communicate, and securely maintain their information. It is essential that we vigorously prosecute those who erode that confidence and illicitly gain access to computer systems and the electronic information of others. Everyone benefits when this deceitful conduct is discovered, investigated, and prosecuted.”
“The sentence announced today would not have been possible without the cooperation of our partners in the private sector and international law enforcement, specifically the Palo Alto Networks Unit 42 and the United Kingdom’s Southwest Regional Cyber Crime Unit,” said Michael A. Christman, Acting Special Agent in Charge, Federal Bureau of Investigation, Louisville Division. “The FBI is committed to strengthening these relationships and finding innovative ways to counter cybercrime. Cybercrime is worldwide epidemic, and this case is an example how strong partnerships can hold criminals accountable no matter where they are.”
Under federal law, Grubbs must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for a term of three years. In addition to his sentence of incarceration, Grubbs must also forfeit the proceeds of his crimes, including 114 bitcoin, presently valued at more than $725,000, which was seized by the Federal Bureau of Investigation.
United States Attorney Duncan and Special Agent in Charge Christman jointly made the announcement. The case was investigated by the FBI and additional assistance was provided by Palo Alto Networks Unit 42 the United Kingdom’s Southwest Regional Cyber Crime Unit.
Springfield Man Sentenced to 10 Years in Federal Prison for Trafficking CocaineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LAPRESE GOLLMAN, 43, of Springfield, Massachusetts, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 120 months of imprisonment, followed by eight years of supervised release, for trafficking cocaine.
According to court document and statements made in court, on May 30, 2018, GOLLMAN was arrested after he drove to New Haven in an attempt to purchase four kilograms of cocaine. Investigators seized $100,000 from GOLLMAN at the time of his arrest.
GOLLMAN has been detained since his arrest. On July 16, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 500 grams or more of cocaine.
On June 23, 2008, GOLLMAN was sentenced in the District of Massachusetts to 126 months of imprisonment, followed by eight years of supervised release, for trafficking cocaine. He was released from federal prison in December 2014 and was on federal supervised release at the time of his arrest in May 2018. Judge Bolden sentenced GOLLMAN to a concurrent 30-month prison term for violating the conditions of his supervised release.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the New Haven and Hamden Police Departments. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
South Jersey Woman Admits Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – An Ocean County, New Jersey, woman today admitted defrauding New Jersey state health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced.
Kristie Masucci, 36, of Cedar Run, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging her with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through February 2016, Masucci served as a recruiter in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the information as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the information as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
Masucci and conspirators working under her recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. In return, the pharmacy paid one of Masucci’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Masucci and other members of the conspiracy.
Masucci’s conspirators would then cause the prescriptions to be signed by a doctor who never evaluated whether the patients had a medical necessity for the compounded medication. The prescriptions were then faxed to the Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
According to the information, the Pharmacy Benefits Administrator paid the Compounding Pharmacy more than $50 million for compounded medications mailed to individuals in New Jersey, including $1.88 million for prescriptions submitted by Masucci and her cohorts. Masucci received $388,608 for her role in the scheme.
Masucci faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Feb. 5, 2019. As part of her plea agreement, Masucci must forfeit her criminal proceeds and pay restitution in an amount to be determined at sentencing.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark; and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Jacqueline M. Carle and R. David Walk, Jr. of the U.S. Attorney’s Office in Camden.
Defense counsel: Amy Luria Esq., Roseland, New Jersey
South Bay Doctor Indicted for Unlawfully Distributing Hydrocodone and Health Care FraudRead the Press Release
SAN JOSE– A federal grand jury has indicted South Bay doctor Venkat Aachi, charging him with distributing hydrocodone outside the scope of his professional practice and without a legitimate medical need, and with health care fraud related to the submission of false and fraudulent claims regarding the health care benefits, announced United States Attorney Alex G. Tse, Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Special Agent in Charge Steven J. Ryan.
According to the indictment filed October 9, 2018, and unsealed Friday, October 12, 2018, on six occasions from November 27, 2017, through March 5, 2018, Aachi, 52, of Saratoga, Calif., was a licensed physician in the state of California when he knowingly distributed hydrocodone to two individuals knowing that the distribution was outside the scope of his professional practice and not for a legitimate medical purpose. Further, on July 2, 2018, Aachi allegedly submitted to an insurance company a false and fraudulent claim for payment for healthcare benefits, items, and services.
In sum, Aachi is charged with six counts of distributing drugs outside the scope of professional practice, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C), and one count of health care fraud, in violation of 18 U.S.C. § 1347.
An indictment merely alleges that crimes have been committed, and Aachi, like all defendants, is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years imprisonment and a fine of $1,000,000, for each count of illegal distribution of hydrocodone. In addition, if convicted, the defendant faces 10 years in prison and $250,000 for the violation of 18 U.S.C. § 371. Additional fines, restitution, and additional periods of supervised release also could be ordered at sentencing. 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.
Aachi made an initial appearance on October 12, 2018, before U.S. Magistrate Judge Virginia K DeMarchi. At that time, he was arraigned on the indictment, entered a plea of not guilty, and was released on bond. Aachi is scheduled to appear next before Magistrate Judge DeMarchi on October 22, 2018, for a further bond hearing.
Assistant U.S. Attorney Shailika Kotiya is prosecuting the case with the assistance of Rawaty Yim. This prosecution is the result of investigations by the DEA, FBI, HHS-OIG, and the California Department of Justice Bureau of Medi Cal Fraud and Elder Abuse (BMFEA). Through the BMFEA, the California Department of Justice regularly works with other law enforcement agencies to investigate and prosecute fraud perpetrated on the Medi Cal program against a wide variety of healthcare providers, including doctors and pharmaceutical companies. This case was investigated and prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Sidney Man Sentenced to 3½ Years for Heroin and Crack Trafficking Conspiracy and Maintaining a Drug-Involved PremisesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Derek Blake, 32, of Sidney, Maine, was sentenced today in U.S. District Court by Senior Judge John A. Woodcock, Jr., to 3½ years in prison and three years of supervised release for conspiring to distribute heroin and cocaine base, commonly known as “crack,” and maintaining a drug-involved premises.
According to court records, between June 2015 and March 2017, Blake conspired with others to acquire heroin and crack in Rochester, New York and transport it to Central Maine for distribution. The defendant assisted Rochester dealers in distributing the drugs from his Sidney residence, served as a “middle-man” for drugs deals, introduced dealers to drug customers in Central Maine and provided transportation for the dealers and their drugs.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Sidney Man Sentenced to 3½ Years for Heroin and Crack Trafficking Conspiracy and Maintaining a Drug-Involved PremisesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Derek Blake, 32, of Sidney, Maine, was sentenced today in U.S. District Court by Senior Judge John A. Woodcock, Jr., to 3½ years in prison and three years of supervised release for conspiring to distribute heroin and cocaine base, commonly known as “crack,” and maintaining a drug-involved premises.
According to court records, between June 2015 and March 2017, Blake conspired with others to acquire heroin and crack in Rochester, New York and transport it to Central Maine for distribution. The defendant assisted Rochester dealers in distributing the drugs from his Sidney residence, served as a “middle-man” for drugs deals, introduced dealers to drug customers in Central Maine and provided transportation for the dealers and their drugs.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Sex Offender Sentenced for Failing to Register in NebraskaRead the Press Release
United States Attorney Joe Kelly announced that Sire English, 26, was sentenced for failing to register as a sex offender. The Honorable Robert F. Rossiter, Jr., sentenced English to 15 months of imprisonment. There is no parole in the federal system. After his release from prison, English will being a five-year term of supervised release.
English was convicted in Pottawattamie County, Iowa, of enticing a minor. This 2013 conviction required English to register as a sex offender for ten years. He had registered in Iowa and later in Arkansas before moving to Omaha in December, 2016. He did not register with the Nebraska Sex Offender Registry and was arrested by the United States Marshal’s Office in June, 2017.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Salinas Resident Charged with Attempted Murder and Related Crimes in Salinas Gang CaseRead the Press Release
SAN JOSE - A federal grand jury indicted Kristopher Purcell, aka “K-Dawg,” charging him with two counts of attempted murder in aid of racketeering; two counts of assault with a dangerous weapon in aid of racketeering; and one count of use of a firearm during and in relation to, or possession in furtherance of, a crime of violence, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
The indictment was filed October 11, 2018, and was unsealed earlier today. According to the indictment, Purcell, age 20, of Salinas, is accused of attempting to murder two victims on Orchard Avenue in Salinas, on February 12, 2017, in an attempt to enhance his status with the Nuestra Familia prison gang and its subservient Norteno street gangs. The indictment describes how Norteno gang members earn promotion and prestige by proving themselves through the commission of criminal activities, including acts of violence such as murder and attempted murder. In fact, according to the indictment, a Norteno gang member is expected to “hunt” – that is, seek out and beat, stab, or shoot – any rivals.
Further, Purcell is charged with two counts of assault with a dangerous weapon as a result of the same February 12, 2017 shooting. The fifth charge in the indictment relates to Purcell’s alleged use of a firearm during the attack. In sum, Purcell is charged with two counts of attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); two counts of assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(3); and one count of use of a firearm during and in relation to, or possession in furtherance of, a crime of violence, in violation of 18 U.S.C. § 924(c).
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted of either count of attempted murder, Purcell faces a maximum prison term of 10 years and a maximum fine of $250,000. If convicted of either count of assault with a dangerous weapon, Purcell faces a maximum prison term of 20 years and a maximum fine of $250,000. If convicted of the firearm offense, Purcell faces a mandatory minimum sentence of 10 years in prison and a maximum prison term of life in prison, to run consecutive to any other sentence imposed in this case. The firearms offense also carries a maximum fine of $250,000. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Purcell made an initial appearance this afternoon before U.S. Magistrate Judge Susan van Keulen. He remains in custody and is next scheduled to appear before U.S. Magistrate Judge Virginia K. DeMarchi for a hearing to determine whether he will be detained pending disposition of this case.
The prosecution is the result of an investigation by the FBI, with assistance from the California Highway Patrol and the Salinas Police Department.
Members of the public who have information regarding gang-related activities are encouraged to contact FBI San Francisco Division at 415-553-7400.
Riverside Man Sentenced for Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Riverside, Mo., man was sentenced in federal court today for sharing child pornography over the internet.
Christopher G. Brenner, 36, was sentenced by U.S. District Judge Roseann Ketchmark to 11 years in federal prison without parole. The court also sentenced Brenner to a lifetime of supervised release following incarceration.
On Oct. 25, 2017, Brenner pleaded guilty to attempting to distribute child pornography over the internet. Brenner admitted that he used a peer-to-peer file-sharing network to share videos and images of child pornography. An undercover federal agent identified Brenner’s computer and downloaded three videos of child pornography, including particularly graphic and extremely violent videos, one of which was a 39-minute compilation of video clips. Law enforcement officers executed a search warrant at Brenner’s residence on May 15, 2013, and seized a desktop computer and electronic media.
Investigators determined that Brenner’s electronic media contained 46 images and 27 videos of child pornography, including a video of a baby being sexually assaulted. There was also evidence of additional downloads of child pornography, and indications that Brenner had logged into a website known to contain child pornography.
After Brenner’s arrest, he violated the conditions of his pretrial release by accessing the internet to search terms associated with child pornography. Brenner’s bond was revoked in June 2017 and he has been detained in federal custody since then.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
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."
Restaurant Owner Sentenced for Failing to Report Nearly $1.5 Million in Business ReceiptsRead the Press Release
BOSTON – The owner of a well-known Salem restaurant, King’s Roast Beef Inc., was sentenced today for failing to report or pay taxes on nearly $1.5 million in income from the business.
John Kalantzis, 52, of Lynn, was sentenced by U.S. District Court Judge William G. Young to one year and one day in prison, one year of supervised release, and ordered to pay a fine of $25,000. Prior to the sentencing hearing, Kalantzis paid restitution of $383,238 to the IRS. In July 2018, Kalantzis pleaded guilty to two counts of aiding and assisting in filing a false tax return.
During tax years 2011 through 2015, Kalantzis underreported the gross receipts and expenses of King’s Roast Beef in order to improperly reduce the federal income taxes owed by the restaurant. Kalantzis did so by diverting some of the restaurant’s cash receipts to himself, paying for some of the restaurant supplies with cash, and paying a portion of his employees’ wages in cash. Kalantzis then failed to report this conduct to his tax preparer. As such, during each of the tax years 2011 through 2015, Kalantzis failed to report cash receipts of about $300,000 and cash expenses of approximately $120,000 on King’s Roast Beef’s tax returns. As a result, Kalantzis failed to report a total of $855,000 in business income to the IRS during those years, thereby avoiding paying corporate and personal taxes of $383,000.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Recent Prosecutions of Firearms Offenses in Fresno CourtRead the Press Release
FRESNO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime, U.S. Attorney McGregor W. Scott announced the following cases involving illegal firearms offenses.
Richard Reyes, a 37-year-old resident of Fresno, was sentenced today by United States Chief District Judge Lawrence J. O’Neill to nine years and two months in prison for being a felon in possession of a firearm. According to court documents, on March 21, 2017, Reyes crashed his vehicle into another car and fled the scene of the accident. Police found him a few houses away. In Reyes’s car, police found a short-barreled rifle and a sawed-off shotgun, along with ammunition. This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fresno Police Department. Assistant United States Attorney Ross Pearson prosecuted the case.
Delwyn Gladney, a 49-year-old resident of Fresno, was sentenced today by United States Chief District Judge Lawrence J. O’Neill to seven years in prison for being a felon in possession of a firearm. According to court documents, Gladney was riding his bicycle without a front light on February 26, 2017. Police officers attempted to stop him, but he rode away. They followed him to a nearby parking lot, where they saw him place a gun behind a parked car. This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fresno Police Department. Assistant United States Attorney Ross Pearson prosecuted the case.
Miguel Saldate, a 42-year-old resident of Modesto, pleaded guilty today to being a felon in possession of a firearm. According to court documents, police officers came to search Saldate’s house and observed him drop a firearm near a shed. Saldate is scheduled to be sentenced by United States Chief District Judge Lawrence J. O’Neill on January 14, 2019. This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Stanislaus County Sheriff’s Department. Assistant United States Attorney Ross Pearson is prosecuting the case.
Daniel Sandoval-Arce, a 42-year-old resident of Turlock, pleaded guilty today to being an illegal alien in possession of a firearm. According to court documents, police officers searched a house in Turlock, where they found Sandoval-Arce in possession of firearms and a military-grade 60-millimeter mortar round. Sandoval-Arce is scheduled to be sentenced by United States District Judge Dale A. Drozd on January 7, 2019. This case is the product of an investigation by Homeland Security Investigations and the Turlock Police Department. Assistant United States Attorney Ross Pearson is prosecuting the case.
Salvador Tarango, 35, of Bakersfield, pleaded guilty today to possession of an unregistered firearm. According to court documents, on March 7, 2018, Bakersfield Police Officers responded to a call reporting shots fired in the early morning hours. Officers found shell casings in the defendant’s driveway. During a search, officers found an unregistered weapon made from a rifle with a barrel of less than 16 inches in length. A partially-loaded, high capacity magazine was found in close proximity to the weapon. Tarango is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on January 22, 2019. This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bakersfield Police Department. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.
Orasio Fierro, 27, of Winton, was sentenced last week by United States Chief District Judge Lawrence J. O’Neill to four years and eleven months in prison for being a felon in possession of a firearm. According to court documents, on multiple occasions between January 2017 and May 2017, Fierro sold firearms to an alleged gang member, including two AR-15-type rifles. Fierro pleaded guilty to the offense in June 2018. This case was the product of an investigation by the Federal Bureau of Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the California Department of Justice Special Operations Unit. Assistant United States Attorneys Ross Pearson and Kimberly A. Sanchez prosecuted the case.
Bryan Mancia, 31, of Fresno, was sentenced on October 10, 2018, by U.S. District Judge Dale A. Drozd to 2 years in prison for being a felon in possession of a firearm. In June 2018, Mancia pleaded guilty to the charge. According to court documents, Mancia had a firearm in his pocket during an encounter with police. This case was the product of an investigation by the Fresno Sheriff’s Office and Homeland Security Investigations. Assistant U.S. Attorney Kimberly A. Sanchez prosecuted the case.
The Organized Crime Drug Enforcement Task Force (OCDETF) was involved in the investigation of many of these cases. The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Randallstown Man Sentenced to 40 Years in Federal Prison for Producing and Possessing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced John Michael Fowler, age 28, of Randallstown, Maryland, today to 40 years in federal prison for four counts of sexually abusing a minor in order to produce visual images of the abuse, and one count of possession of child pornography, followed by 30 years of supervised release. Judge Bennett also ordered that, upon his release from prison, Fowler must 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).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation; Interim Commissioner Gary Tuggle of the Baltimore Police Department; and Baltimore State’s Attorney Marilyn Mosby.
“John Fowler is a sexual predator who committed horrific acts against innocent children,” said U.S. Attorney Robert K. Hur. “This sentence demonstrates our commitment to protect our children and to hold accountable those who endanger them. As there is no parole for federal sentences, we have removed the threat of Mr. Fowler from our community.”
According to his indictment and other court documents, Fowler sexually abused two young girls and took videos and photos documenting the abuse. Specifically, in 2013 and 2014 Fowler sexually abused a girl who was six years old when the abuse began. Fowler photographed the abuse and those sexually explicit images were found during a search of his Randallstown home on February 16, 2017. Fowler admitted that he also abused an eight-year-old girl, whom Fowler thought was sleeping, using his mobile phone to produce sexually explicit images of the girl.
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.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 the FBI, the Baltimore Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation and prosecution. Mr. Hur thanked Assistant U.S. Attorney Paul Budlow, who is prosecuting the case.Prominent Atlanta attorney convicted of embezzling millions of dollarsRead the Press Release
ATLANTA - A federal district court jury convicted Nathan E. Hardwick IV of twenty-one counts of wire fraud, one count of conspiracy to commit wire fraud, and one count of making false statements to a federally insured financial institution on October 12, 2018.
“Hardwick was motivated by unadulterated deceit and greed when he blatantly violated the trust placed in him by embezzling millions of dollars from his clients and partners,” said U.S. Attorney Byung J. “BJay” Pak. “The extravagant lifestyle that Hardwick enjoyed at the expense of others will now be traded for time in prison.”
“This case is especially troubling given the illegal actions were orchestrated by a lawyer who swore an oath to uphold the law and represent his clients with integrity,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The magnitude of theft Hardwick is convicted of merits a lengthy sentence, one that will hopefully send a message that the FBI and U.S. Attorney’s Office will not tolerate this type of white-collar crime.”
According to U.S. Attorney Pak, the charges and other information presented in court: Hardwick and Asha Maurya engaged in a scheme to defraud MHSLAW, Inc. and its subsidiaries, Morris Hardwick Schneider, LLC and LandCastle Title, LLC, (collectively referred to as “MHS”). MHS owned and operated a law firm that specialized in residential real estate closings and foreclosures, and it ran a title business. MHS employed approximately 800 people in 16 states. Hardwick was the managing partner of the law firm and the CEO of the title business. He also ran the law firm’s closing division, which was based in Atlanta. Maurya managed MHS’s accounting operations under Hardwick's supervision and control.
In early 2007, Hardwick and his law partners sold off part of their business, and Hardwick pocketed approximately $11.8 million. Hardwick quickly squandered that money, and by the end of 2010 he was broke and deeply in debt.
From January 2011 through August 2014, Hardwick siphoned off more than $26 million from MHS’s accounts to pay his personal debts and expenses and to finance his extravagant lifestyle. More than $19 million of that was client money that was stolen from MHS’s attorney trust accounts. Hardwick spent approximately $18.5 million of the fraud proceeds on gambling, private jets, and more than 50 different social companions.
MHS’s audited financial statements showed that the firm’s combined net income from 2011 through 2013 was approximately $10 million. During that same three-year period, Hardwick took more than $20 million out of the firm’s accounts.
Hardwick and Maurya conspired to cover-up the fraud and made numerous false statements to Hardwick’s law partners concerning the amount of money that Hardwick was taking out of the firm.
Hardwick and Maurya were originally indicted by a federal grand jury on February 9, 2016. The original indictment charged Hardwick and Maurya with conspiracy, wire fraud, and bank fraud. It also charged Hardwick with making false statements to a federally insured financial institution and charged Maurya with mail fraud. Maurya pled guilty to conspiracy on May 11, 2017. The grand jury returned a superseding indictment against Hardwick on December 5, 2017, charging him with conspiracy to commit wire fraud, wire fraud, and making false statements to a federally insured financial institution.
Hardwick’s trial began on September 17, 2018 and was presided over by U.S. District Judge Eleanor L. Ross. On October 12, 2018, after deliberating approximately nine hours, the jury convicted Hardwick on all counts.
Nathan E. Hardwick IV, 53, of Atlanta, Georgia, and Asha R. Maurya 43, of Atlanta, Georgia will be sentenced at a later date.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Russell Phillips; Doug Gilfillan, Chief of the Cyber & Intellectual Property Crime Section; and Lynsey Barron are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Poteau Man Pleads Guilty to Drug Conspiracy, Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joe David White, age 58, of Poteau, Oklahoma, entered a guilty plea to Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 nor more than 40 years imprisonment, a fine up to $5,000,000.00, or both; and for Distribution of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, a fine up to $1,000,000.00, or both.
The Indictment alleged that beginning on or about a date uncertain in 2015 and continuing until on or about January 9, 2017, within the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and intentionally combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 841, as follows: possession with intent to distribute and distribution of 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment further alleges on various dates from on or about December 15, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Poteau Police Department, the District 16 Narcotics Task Force, and the Oklahoma Bureau of Narcotics.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Pittsburgh Man Sentenced to Prison for Falsifying Firearms Purchase FormsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to two years and six months in prison, followed by three years supervised release, on his conviction of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Duane Manuel, 25, of Pittsburgh, Pennsylvania.
According to information presented to the court, on September 19, 2017, Manuel falsified firearms purchase forms at Island Firearms during his purchase of two firearms. Manuel also falsified firearms purchase forms on September 10, 2017, at Island Firearms; on September 1, 2017, at Anthony Arms; on July 31, 2017 at Anthony Arms; July 1, 2017 at Justin’s Gun Shop; on June 16, 2017, at Anthony Arms; on June 10, 2017, at Anthony Arms and Island Firearms; and on June 4, 2017, at Anthony Arms. Overall, Manuel purchased 15 firearms, and falsely stated that he was purchasing the firearms for himself. In fact, he purchased the firearms at the direction of other persons, intending to deliver the firearms to those individuals.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Manuel. This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in a America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Over 31,000 South Carolina Students to Participate in State’s 17th Annual National Day of Concern & Student Pledge Against Gun ViolenceRead the Press Release
COLUMBIA, South Carolina ---- United States Attorney Sherri A. Lydon stated today that on Wednesday, October 17, 2018, the United States Attorney’s Office (USAO), along their local, state, and federal law enforcement partners, will visit schools across South Carolina to meet with students as a part of South Carolina’s 17th Annual Student Pledge Against Gun Violence. With a focus on keeping their schools and communities safe, students in middle school and high school are signing a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes. Elementary school children are making a simpler commitment, pledging that if they see a gun they will not touch it, they will tell a teacher or a trusted adult, and they will assume that any gun they see might be loaded.
The Student Pledge Against Gun Violence is a national program that recognizes the role young people, through their own decisions, can play in reducing gun violence. The program provides a means for beginning the conversation with young people about gun violence and encourages important conversation among young people about gun safety and respectful ways to resolve disputes. Students from around the country will join together in pledging to do their part. For additional information concerning the pledge, visit the national Student Pledge website at www.pledge.org .
As it has done since 2002, the USAO reached out to all South Carolina law enforcement agencies and schools to make the pledges available to interested schools. This pledge effort is part of Project CeaseFire, which is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a national program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. One year ago, in October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all USAOs to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The following South Carolina schools and local law enforcement agencies are participating in this year’s pledge on October 17th. A total of 59 schools across the state are participating in this year’s pledge event, some of which requested speakers for their pledge event, as noted below with an “asterisk”. For information on events scheduled for a particular school, please contact that school directly. The USAO would like to thank the FBI, ATF, and United States Marshals Service for their assistance in providing speakers to the 28 requesting schools. For additional information concerning the pledge, visit the national Student Pledge web site at www.pledge.org.
Participating Schools
A.J. Lewis Greenview Elementary School – Columbia*
Austin Middle School – Summerville*
A. R. Lewis Opportunity School - Pickens
Applied Technology Center – Rock Hill
Battery Creek High School – Beaufort*
Beaufort Middle School – Beaufort*
Blacksburg Middle School -Blacksburg*
Burke High School – Charleston*
C.E. Williams Middle School - Charleston
Cane Bay Middle School - Summerville
Castle Heights Middle School – Rock Hill
Cheraw Intermediate School – Cheraw*
Clover 9th Grade Campus - Clover
Clover High School - Clover
Dutchman Creek Middle School – Rock Hill
Forest Heights Elementary School – Columbia*
Gilbert High School – Gilbert*
Gold Hill Middle School – Tega Cay
Greer High School - Greer
Hardeeville - Ridgeland Middle School - Ridgeland*
Hilton Head High School – Hilton Head
Hilton Head Island Middle School – Hilton Head Island
James Island Charter High School – James Island
Ladson Elementary - Ladson
Lee Central High School - Bishopville
Liberty Elementary School – Liberty*
Lemira Elementary School - Sumter
Longleaf Middle School - Columbia*
Macedonia Middle School – Moncks Corner*
McCormick High School - McCormick*
McCormick Middle School - McCormick*
Midlands Art Conservatory - Columbia*
Myrtle Beach High School – Myrtle Beach
Myrtle Beach Middle School – Myrtle Beach
North Augusta Middle School – North Augusta
Northwest Elementary School - Gaffney*
Northwestern High School – Rock Hill
Oakbrook Middle School - Ladson
Oakridge Middle School – Clover
Ocean Drive Elementary School – Myrtle Beach
Paul Knox Middle School – North Augusta
Pepperhill Elementary School - Charleston*
Pine Grove Elementary School - Columbia*
Pine Ridge Middle School – West Columbia
Rawlinson Road Middle School – Rock Hill
Richland One Middle College - Columbia*
Robert Small International Academy - Beaufort
Rock Hill High School – Rock Hill*
South Pointe High School – Rock Hill
St. George Middle School – St. George*
St. James - Santee Elementary Middle School - McClellanville*
St. James Intermediate School - Charleston
St. John's High School – John’s Island*
Sullivan Middle School – Rock Hill
Summerville High School - Summerville*
Ware Shoals Primary School –Ware Shoals*
Washington Street Elementary -Hartsville*
W.J. Keenan High School - Columbia
Whale Branch Early College High School - Seabrook*
Whale Branch Middle School – Seabrook
Participating Local Law Enforcement Agencies
Beaufort Police Department
Beaufort County Sheriff’s Office
Berkeley County Sheriff’s Office
Charleston County Sheriff’s Office
Charleston Police Department
City of Charleston Department of Police
Columbia Police Department
Greenwood County Sheriff’s Department
Greer Police Department
Hardeeville Police Department
McCormick Sheriff’s Department
Midlands Technical College
Myrtle Beach Police Department
North Augusta Department of Public Safety
North Charleston Police Department
Pickens County Sheriff’s Office
Richland County Sheriff’s Department
Rock Hill Police Department
St. George Police Department
Summerville Police Department
Sumter Police Department
Tega Cay Police Department
Town of Summerville
York County Sheriff’s Office
#####
Ohio Businessman Sentenced to Prison for Tax FraudRead the Press Release
A Germantown, Ohio businessman who controlled the operation of an anti-aging skincare business in Dayton, Ohio was sentenced to 33 months in prison today following his November 2017 conviction by a federal jury on seven counts of filing false corporate, individual, and private foundation tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and evidence presented at trial, James Wright, 63, ran the day-to-day operations of B&P Company, Inc. (B&P), which manufactured and sold an array of skincare products, including Frownies, a wrinkle reduction product endorsed by celebrities. Wright’s great-grandmother invented Frownies in 1889 and the product has been sold by his family ever since. Beginning in the late 1990s, Wright formed a series of entities that he used to divert money from B&P to himself and members of his family. Instead of receiving a salary from B&P, Wright incorporated a company called The Remnant, Inc., to which B&P paid “management fees.” Wright caused the preparation of false corporate tax returns for The Remnant on which he fraudulently deducted personal expenses, including rent, utilities, and pool and lawn care for his residence. Wright also used funds from The Remnant’s bank accounts to pay rent for one of his daughters in New York and California. Wright paid personal expenses directly out of B&P’s bank accounts as well. He directed employees of B&P to use corporate funds to pay for the rent and utilities at an apartment rented by his mother as well as rent for his daughter in New York.
In 2004, Wright applied to the IRS for non-profit status for a private foundation called Fore Fathers Foundation. Wright caused B&P to make donations to the foundation and then used more than $170,000 of the foundation’s funds over a seven-year period to pay for high school and college tuition for all five of his children. According to the testimony at trial, these payments constituted acts of self-dealing that Wright was required to disclose on the foundation’s tax returns and pay excise taxes on. When Wright filed the foundation’s 2003 through 2009 returns however, he falsely reported that he had not engaged in acts of self-dealing and failed to pay the excise taxes due on the distributions.
The evidence at trial established that Wright had a long history of interactions with the IRS. In 1998, Wright pleaded guilty to tax evasion for using trusts to conceal income from the IRS.
In addition to the term of imprisonment, U.S. District Judge Walter H. Rice ordered Wright to serve one year of supervised release and pay $146,404 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Southern District of Ohio for their support during the investigation and prosecution of this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Newport Man Sentenced to over 13 Years for Heroin Trafficking ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Jamie Akerson, 57, of Newport, Maine, was sentenced today in U.S. District Court by Senior Judge John A. Woodcock, Jr. to 160 months in prison and five years of supervised release for conspiring to distribute more than a kilogram of heroin. The defendant pled guilty on April 14, 2017.
According to court records, between May 2015 and January 2016, Akerson conspired with Todd Shorey and others to acquire large quantities of heroin on a weekly basis from an out-of-state supplier and to have it distributed by others throughout Central Maine.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New London Man Sentenced to 27 Months in Federal Prison for Role in Heroin Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LUIS GONZALEZ, 48, of New London, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 27 months of imprisonment, followed by one year of supervised release, for his role in a southeastern Connecticut heroin trafficking ring.
According to court documents and statements made in court, this matter stems from an investigation that began after several heroin overdoses in southeastern Connecticut, including two overdose deaths involving a heroin and fentanyl mix that occurred in January 2016. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, revealed that Michael Luciano operated a drug trafficking organization that distributed heroin to numerous street-level dealers, including GONZALEZ, in southeastern Connecticut.
On December 12, 2017, a grand jury in Hartford returned a 25-count superseding indictment charging GONZALEZ, Luciano and 19 other individuals with various heroin trafficking offenses. GONZALEZ was arrested on December 14, 2017. On June 5, 2018, he pleaded guilty to one count of use of a telephone to facilitate the commission of a drug trafficking felony. He has been detained since his arrest.
Luciano, of New London, has been detained since his arrest on November 14, 2017. On June 27, 2018, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, one kilogram or more of heroin.
This matter is being investigated by the Drug Enforcement Administration, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations, Connecticut State Police Statewide Narcotics Task Force East and the New London, Norwich, Waterford, Attleboro (Mass.) and Freetown (Mass.) Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Jocelyn Courtney Kaoutzanis.
Mobile County Man Receives 27 Month Sentence for Possession of a Firearm While Using a Controlled SubstanceRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Edward Blake Freer, a 25 year old resident of Grand Bay, Alabama was sentenced to 27 months for being a user of marijuana and methamphetamine in possession of a firearm.
On July 18, 2018, according to a factual statement Freer signed in connection with his guilty plea to being a user in possession of a firearm, on July 25, 2017, Mobile County, Alabama deputies were patrolling the area of Old Pascagoula Road when they saw a Honda Accord traveling with an expired tag. They initiated a traffic stop. As the Honda slowed down, deputies could see the driver and passenger moving around in the vehicle. When deputies approached the vehicle they observed Freer and a front seat male passenger. When a deputy asked Freer for his driver’s license he could see a bullet in Freer’s lap. Next, the deputy asked Freer if he had a firearm in the vehicle and Freer responded, “Yes.” Freer then reached for his waistband and the deputy grabbed his hands and asked him to exit the vehicle. The passenger was also asked to exit the vehicle. Both men did and were checked for weapons for officer safety. Neither had weapons on his person. Freer then stated that the firearm was underneath the driver’s seat. Deputies then seized from underneath the seat a loaded Euro arms, 9mm pistol. Deputies then learned that the vehicle Freer was driving was stolen. After Freer waived his Miranda Rights, he stated that he bought the vehicle from someone for “half an ounce of weed” and did not know the vehicle was stolen. Freer also stated that he obtained the firearm from a “meth head” for protection a few hours before he was stopped by the deputies. Both men were arrested and pursuant to an inventory search of the Honda, deputies seized several syringes, two burnt marijuana cigarettes and miscellaneous drug paraphernalia. On May 3, 2018 Freer was interviewed at his mother’s residence by FBI agents. Freer told the agents that the Euro arms pistol was his and that he bought it for 3.5 grams of methamphetamine. Freer said that he had been using Methamphetamine since the age of 15 years and could also to cook methamphetamine. He also stated that he was “high” the date of the traffic stop in July 2017. Freer stated that at that time he was using Methamphetamine every weekend but said that all he uses now is marijuana.
Special Agents of the Federal Bureau of Investigation along with deputies of the Mobile, County, Alabama Sheriff’s office investigated the case and brought it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Mobile County Man Receives 18 Month Sentence for Making Counterfeit United States Currency, Ordered to Pay $130.00 Restitution and All Items Used to Facilitate the Crime Were ForfeitedRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Christopher M. Tanner, a 45 year old resident of Mobile, Alabama was sentenced to 18 months for counterfeiting United States currency. He was also ordered to pay $80 in restitution to the Holiday Inn on Highway 90 Mobile, Alabama and $50.00 restitution to Burger King Theodore Dawes Road, Theodore, Alabama. All items used to facilitate the counterfeiting crime was forfeited to the United States.
On July 17, 2018, according to a factual statement Christopher Tanner signed in connection with his guilty plea to counterfeiting United States currency, on January 29, 2018, Christopher Tanner and his wife, Debbie Tanner, checked into a room at the Holiday Inn on Highway 90 in Mobile, Alabama. Christopher Tanner paid for the room with $80 of counterfeit U.S. currency. Once the hotel staff discovered that the money was counterfeit, they call the local authorities. Officers responded to the scene and located Christopher Tanner on the property. Mr. Tanner was Mirandized and asked if he paid cash for the room and whether he knew the money he used was counterfeited U.S. currency. Mr. Tanner stated that he did pay for the room in cash and that he received the cash from a person he did not know as payment for a business transaction. Mr. Tanner stated that he did not know the money was counterfeit. Officers then told Mr. Tanner that he would be transported to the Financial Crimes Unit of the Mobile Police Department. Mr. Tanner asked officers if they would retrieve a pair of shoes from his hotel room for him. Officers went to the room and knocked on the door. After waiting for approximately five minutes, Mrs. Tanner opened the door. Officers asked for a pair of shoes for her husband. During the wait, officers heard what they believed to be the top of a printer closing and crumbling paper. When Mrs. Tanner returned with the shoes, officers asked if she was alone in the room and if he could conduct a safety check of the room. Mrs. Tanner gave verbal consent. While conducting the safety check, the officers noticed two printers and a pack of paper inside the room. Mrs. Tanner was then detained and a search warrant was obtained for the room. Additionally, officers obtained a search warrant for the vehicle the Tanners drove to the hotel after seeing a package of printer paper in plain view through one of the vehicle’s windows. Items seized during the search of the hotel room included printers; computers; $429.00 cash that include the parent notes used to produce counterfeit federal reserve notes; $8,890.00 in counterfeited U.S. Currency; nineteen bleached genuine $1 federal reserve notes; a notebook containing notes on security information of U.S. currency; a pack of printer paper; and a can of oven cleaner.
Officers also obtained search warrants for the two seized computers. Items found during the searches included: 44 images of counterfeit currency; 20 images of driver’s licenses from various states and an internet history displaying downloads and searches for items related to manufacturing counterfeit currency and documents. All of the items seized during the searches were instrumentalities of and helped facilitate the production of counterfeited U.S. currency.
On January 4, 2018 in DeRidder, Louisiana, Christopher Tanner attempted to pay his electric bill at Beauregard Electric with two counterfeit $20 dollar bills include with genuine U.S. currency. He was not arrested at that time because officers believed his story when he told them he did not know the money was counterfeit.
On March 14, 2018, Tanner went into the Walmart in DeRidder, Louisiana, and purchased merchandise with counterfeited $20 bills. He was not apprehended that day but his fraudulent transaction was captured on Walmart’s security camera video.
On March 17, 2018 in DeRidder, Louisiana, Christopher Tanner was arrested for possessing, passing and attempting to pass counterfeit currency. On this date, a search warrant was executed at a hotel room he was staying in. The items seized during that search included: 1) approximately $18,130 in counterfeit U.S. currency; 2) a Blackberry tablet; 3) a Verizon tablet; 4) an HP Laptop computer. All of Tanner’s criminal activities in DeRidder were continuous actions that were part of his conspiracy in Mobile.
Special Agents of the United States Secret Service along with officers of the Mobile, Alabama Police Department investigated the case and brought it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Milford Man Arrested, Charged with Defrauding Elderly IndividualRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that, on October 11, 2018, a federal grand jury in New Haven returned an indictment charging CHRISTOPHER J. SAKELARAKIS, 34, of Milford, with fraud and money laundering offenses stemming from an investment scheme that defrauded an elderly victim of $60,000.
SAKELARAKIS was arrested this morning. He appeared before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven, entered a plea of not guilty to the charges, and was released on a $60,000 bond.
As alleged in the indictment, SAKELARAKIS held himself out as having the necessary qualifications, experience and abilities to provide investment services to a victim-investor. SAKELARAKIS falsely represented to the victim-investor that he had a number of investment clients, that he was making a substantial profit including by day trading, and that he had a contact in an investment firm who provided him with stock tips. SAKELARAKIS also represented that he would invest in stocks, options and other financial instruments on behalf of the victim-investor and that his compensation would be a commission on 10 percent of the profits.
It is further alleged that, in October 2017, the victim-investor provided SAKELARAKIS with a $60,000 check. Within days after receiving and depositing the check, SAKELARAKIS withdrew $30,000 in cash, and then made additional cash withdrawals, including several large withdrawals at ATMs. SAKELARAKIS spent a portion of the funds at stores such as Armani Exchange, Foot Locker, Macy’s and Gamestop. In October and November 2017, SAKELARAKIS made several false representations in e-mails to the victim-investor relating to the status of the “investments” and the victim-investor’s account. No funds were ever returned to the victim-investor.
The indictment charges SAKELARAKIS with five counts of wire fraud and three counts of securities fraud, offenses that carry a maximum term of imprisonment of 20 years on each count. The indictment also charges SAKELARAKIS with one count of money laundering, an offense that carries a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, Wilton Police Department and Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
U.S. Attorney Durham noted that this case has been brought as part of the Justice Department’s Elder Justice Initiative (EJI). To learn more about EJI, please visit www.justice.gov/elderjustice.
Middle Georgia's U.S. Attorney to Accompany President Donald Trump During Visit to Hurricane Ravaged GeorgiaRead the Press Release
MACON: The U.S. Attorney for the Middle District of Georgia, Charles Peeler, will join President Donald Trump during the President’s visit to Georgia on Monday, October 15. The President is traveling to Georgia following Hurricane Michael, a historic storm that swept across the region on October 10-11. President Trump declared a federal State of Emergency in Georgia on Thursday, opening up direct federal aid for communities. Damage estimates in the Middle District are unknown, but reported to be in the billions of dollars, including massive crop damage. Both Macon and Albany, home to several key United States Department of Justice offices and federal courthouses serving the Middle District of Georgia, sustained varying levels of storm damage. Albany endured citywide and ongoing power outages and structural damage to homes and businesses.
“My thoughts and prayers are with those people affected by Hurricane Michael,” said Charles Peeler, the U.S. Attorney for the Middle District of Georgia. “The recovery process will be arduous, and I am grateful that President Trump has heard and answered our call for help during this difficult time.”
“I want to applaud the efforts of our region’s first responders during this unprecedented hurricane. I also want to thank the line workers from various electric companies near and far that are restoring power, and a sense of normalcy, to our citizens. We are grateful.”
The United States Attorney’s Office for the Middle District of Georgia has staffed offices in Macon, Columbus and Albany. Following Hurricane Michael, all three offices were shut down as storm damage assessments took place, and for the safety of employees. The Macon and Columbus offices reopened Friday, October 12. The Albany office reopened Monday, October 15.
For media inquiries regarding the U.S. Attorney’s office, please contact Pamela Lightsey at (478) 621-2603. All questions regarding President Trump should be directed to the White House Press Office.
Manitowoc Man Indicted on Firearm and Methamphetamine ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on October 12, 2018, a three-count federal indictment was unsealed against Anthony C. Moore (age: 32) of Manitowoc, Wisconsin.
The indictment alleges that Anthony C. Moore possessed methamphetamine with the intent to distribute the controlled substance and did so while in the possession of a firearm, contrary to Title 21, United States Code, Section 841(a) and Title 18, United States Code, Section 924(c). It further alleges that Moore’s status as a convicted felon prohibited him from ever possessing a firearm pursuant to Title 18, United States Code, Section 922(g)(1). Moore faces a mandatory five-year prison sentence and up to a life sentence, if convicted of the charges alleged.
Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
This case was investigated by the Manitowoc County Sheriff’s Office and the Manitowoc County Metropolitan Drug Enforcement Unit. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
# # #
Man Sentenced to over 12 Years for Sex Trafficking A MinorRead the Press Release
SACRAMENTO, Calif. — Tion Makeise Foster, 23, of Point Arena, was sentenced today by United States District Judge Kimberly J. Mueller to twelve and one-half years in prison followed by ten years of supervised release for sex trafficking a minor, United States Attorney McGregor W. Scott announced.
According to court documents, in August 2016, Foster and his co-defendant, Monica Morales, recruited a 16-year-old girl to engage in commercial sex acts for their financial benefit. The defendants contacted the minor using a social media website on the internet called MocoSpace. After making initial contact, Foster and Morales drove to Yuba County, where they picked up the victim and then transported her around Northern California, where they had her engage in sex acts for their financial benefit for approximately one week. During that time, Foster and Morales posted photos of the victim in various online prostitution advertisements.
After Foster and Morales returned the victim to Yuba County, they contacted her again using the internet in December 2016, and discussed plans to traffic her again. While en route to pick up the victim, Foster was arrested in Citrus Heights following a local undercover operation. In that separate state case, Foster used the internet to recruit a person he believed to be a seventeen-year old girl for sex trafficking activity, but who was in fact an undercover officer.
Codefendant Monica Morales was previously sentenced to over 10 years in prison in this case.
This case was the product of an investigation by the Federal Bureau of Investigation with assistance from the Yuba County Sheriff’s Office. Assistant United States Attorney Michele Beckwith prosecuted 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Man Sentenced to 10 Years for Conspiring to Commit Murder in Aid of RacketeeringRead the Press Release
FRESNO, Calif. — Deandre Stanfield, 38, of Fresno, was sentenced last week by Chief U.S. District Judge Lawrence J. O’Neill to 10 years in prison for conspiracy to commit murder in aid of racketeering, U.S. Attorney McGregor W. Scott announced.
According to court documents, Stanfield was an influential member of the Dog Pound Gang (“DPG”). In that role, he and other influential members guided and directed the actions of younger, less-experienced gang members. They also set rules, including directives not to talk to the police, to “back up” fellow gang members when they needed help with rival gang members or otherwise, and to assist other DPG members with sex trafficking and credit card fraud. In addition to these crimes, the DPG enterprise engaged in drug trafficking, conspiracy to commit murder, and other offenses affecting interstate commerce.
In pleading guilty to the conspiracy, Stanfield admitted that he agreed with other DPG members to kill rival gang members. While incarcerated in Kern North State Prison for assault with a firearm, Stanfield spoke with several DPG members about getting guns and planning retaliation for the shooting of fellow DPG gang members. The conversations happened in March 2016 after codefendant Kenneth Wharry was shot at by individuals DPG believed to be rival gang members, and during a time when DPG was pursuing retaliation.
This case is the product of an investigation by the California Department of Justice, California Highway Patrol Special Operations Unit; Fresno Police Department; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Internal Revenue Service Criminal Investigations; the Multi-Agency Gang Enforcement Consortium (MAGEC); the Fresno County District Attorney’s Office; and California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Kimberly A. Sanchez, Jeffrey A. Spivak, and Christopher D. Baker prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Loves Park Man Sentenced to 22 Years in Federal Prison for Producing Child PornographyRead the Press Release
ROCKFORD — A Loves Park man was sentenced today by U.S. District Judge Philip G. Reinhard to 22 years in federal prison for producing child pornography.
GRANT WOJAHN, 37, admitted in a plea agreement that he created a Facebook account posing as a female teenager. On March 20, 2015, while using that profile, Wohjan contacted a minor female victim using the Facebook private messaging feature and persuaded her to engage in sexually explicit conduct, take photos of that conduct and then transmit the images to Wojahn using the private messaging service on Facebook. According to the plea agreement, the female victim was 13 years of age at the time the pictures were produced and transmitted. Wojahn also admitted that between May 21, 2014, and April 5, 2015, he similarly persuaded six other minor female victims, who were between the ages of 10 and 12, to do the same.
Wojahn also admitted that on March 25, 2015, he used the Facebook private messaging service to chat and send another user a number of images of child pornography depicting one of the minor victims. Further, Wojahn admitted that on Sept. 1, 2015, he possessed numerous images of child pornography on a USB storage device, a cellphone, and other devices, and in total possessed at least 43 videos of child pornography and 71 images of child pornography.
Wojahn pleaded guilty to the child pornography charge on June 11, 2018. The 22-year sentence will be followed by a lifetime term of supervised release.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorney Margaret J. Schneider.
Leader of Fraudulent Opioid Prescription Conspiracy Sentenced to 6 Years in PrisonRead the Press Release
PROVIDENCE, RI – The leader of a conspiracy that created and filled fraudulent prescriptions for approximately 21,000 opioid pills using stolen medical practitioner identification numbers and identities, and, at times, unlawfully paid for the prescriptions with the use of medical insurance, was sentenced today to 72 months in federal prison.
At the time of his guilty plea, Robert Rose, 52, of Providence, admitted to manufacturing fraudulent prescriptions utilizing the identities and Drug Enforcement Administration (DEA) identification numbers and signatures of medical practitioners without their consent. Prescriptions for varying amounts of Oxycodone pills were written and presented to pharmacies by other members of the conspiracy and individuals working at the direction of the conspirators. The scheme often times included the fraudulent use of medical insurance to pay pharmacies for the illicit prescriptions. Most of the Oxycodone pills gained with the use of fraudulent prescriptions were sold to others for distribution.
At the time of his guilty plea, Rose admitted that as the leader of the conspiracy, he paid for individuals’ identities, health care insurance information, and medical practitioners’ names and DEA numbers. Rose provided that information to others who participated in the conspiracy, along with special paper necessary to produce the fraudulent prescriptions.
Rose pleaded guilty on June 1, 2018, to conspiracy to distribute and possess with the intent to distribute Oxycodone, and aggravated identity theft. He admitted to running the conspiracy for several months while incarcerated at the Adult Correctional Institution on an unrelated matter.
At sentencing, U.S. District Court Chief Judge William E. Smith sentenced Rose to 72 months in federal prison to be followed by 5 years supervised release.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 210 months to 240 months, plus a consecutive term of 24 months incarceration on the charge of aggravated identity theft. The government recommended the Court impose a sentence of 105 months incarceration, plus a consecutive term of 24 months incarceration on the charge of aggravated identity theft.
Robert Rose’s sentence is announced by United States Attorney Stephen G. Dambruch and Jeffrey Ebersole Resident Agent in Charge of the United States Food and Drug Administration (FDA) Office of Criminal Investigations.
“Opioid addiction and abuse are an immense public health crisis,” said Jeffrey J. Ebersole, Special Agent in Charge, FDA Office of Criminal Investigations New York Field Office. “We will continue to pursue and bring to justice criminals who intensify the crisis by forging prescriptions for opioids and place the public’s health at risk.”
Four other members of the conspiracy previously pleaded guilty in this matter:
- Michael Slonski, 48, of Johnston, pleaded guilty on April 2, 2018, to conspiracy to distribute and possess with the intent to distribute Oxycodone. He is scheduled to be sentenced on December 3, 2018.
- Raymond Walker, 47, of Cranston, pleaded guilty on June 25, 2018, to possession with intent to distribute Oxycodone and Social Security fraud. He is scheduled to be sentenced on December 7, 2018.
- David Rose, 59, of Providence, pleaded guilty on March 7, 2018, to possession with intent to distribute Oxycodone. On October 3, 2018, he was sentenced to two years probation.
- Victoria Rose-Coccia, 29, of Pawtucket, pleaded guilty on February 28, 2018, to conspiracy to distribute and possess with the intent to distribute Oxycodone. On June 25, 2018, she was sentenced to 24 months imprisonment and 3 years supervised release.
A fifth individual, Tammy Bonham, 53, of Providence, is awaiting trial on a charge of conspiracy to acquire or obtain possession of a controlled substance by misrepresentation, fraud, forgery, or subterfuge; misbranding drugs.
The cases are being prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by the United States Food and Drug Administration Office of Criminal Investigations.
###
Lawrence Man Pleads Guilty to Drug Trafficking and Firearm ChargesRead the Press Release
CONCORD – Ruben Gomez, 34, of Lawrence, Massachusetts pleaded guilty in federal court to possession and distribution of a controlled substance and possession of a firearm in furtherance of a drug trafficking crime, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, the defendant sold cocaine to an individual who was cooperating with law enforcement officers in Nashua, New Hampshire. On the day of his arrest, he carried a firearm with him to sell cocaine and oxycodone.
Ruben is scheduled to be sentenced on January 28, 2019.
“When drug traffickers carry firearms, they pose a grave risk to the general public,” said U.S. Attorney Murray. “In order to protect our community, we will be aggressive in prosecuting criminals who use guns. Armed drug traffickers who choose to come into our state should understand that they will be arrested and prosecuted to the fullest extent of the law.”
This matter was investigated by the Drug Enforcement Administration and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana L. Konesky.
###
Law Enforcement Agencies Join Forces to Prevent Violent Crime in HuntsvilleRead the Press Release
HUNTSVILLE– A task force established to prevent violent crime in the City of Huntsville held its inaugural meeting today at the Huntsville Police Department, announced U.S. Attorney Jay E. Town and Huntsville Police Chief Mark McMurray.
The Huntsville Public Safety Task Force is an effort between the United States Attorney’s Office and the Huntsville Police Department to develop a strategic plan for preventing violent crime in the City of Huntsville and the metro area. Joining Town and McMurray on the task force are representatives of the Mayor’s Office, Madison County Sheriff’s Office, Madison County District Attorney’s Office, Madison Police Department, Decatur Police Department, Alabama Board of Pardons and Paroles, Huntsville Housing Authority, and the federal law enforcement agencies FBI, Bureau of Alcohol, Tobacco and Firearms and Explosives, Drug Enforcement Administration, U.S. Marshals Service and Homeland Security Investigations.
“The formation of this Task Force marks the beginning of a strategic partnership between federal, state and local law enforcement to utilize enhanced crime intelligence to aggressively pursue the worst offenders in our city,” Town said. “The Task Force provides a needed platform to target alpha criminals for prosecution in the forum where the sanction is the highest, remove them from our streets with severe punishment, and return our communities back to their rightful owners...the law abiding citizens. Bed space in state and federal prisons awaits.”
“The HPSTF will be a great enhancement in our fight against violent criminals not only in our city but in North Alabama, McMurray said.” “Our Mission in this Task Force will be to systematically remove the most violent criminals and repeat offenders from the top down.” “The criminal intelligence derived from this list of repeat violent offenders will remain law enforcement sensitive information.” “This multi-agency relationship with federal authorities will greatly enhance sentencing these offenders and keep our city safe.” “We appreciate and look forward to working with Jay Town and his office in making this a success for everyone involved.”
“Huntsville is one of the safest cities in the country, and we want to keep it that way,” said Mayor Tommy Battle. “We are pleased to work proactively and collaboratively with our law enforcement partners in this initiative. It sends a powerful message to criminals – we won’t tolerate violent behavior, and we will find you, prosecute you, and put you in prison.”
The task force incorporates principles of Project Safe Neighborhoods which is the Department of Justice’s violent crime reduction strategy. By these agencies working together, it allows the task force to have a comprehensive utilization of multi-level resources to plan, collect, process, analyze and disseminate information among each other and to make targeting and capturing key offenders easier. Each agency will have an operational expectation unique to their department with the collective goal of producing useful intelligence on the worst criminal elements so that investigations can yield successful prosecutions in the jurisdiction where the punishment is the most significant. This allows the community and its citizens to enjoy the absence of these worst offenders for the longest possible time without reprisal.
Reinvigorated by Attorney General Jeff Sessions last year, PSN is a nationwide Department of Justice program committed to reducing violent crime by networking law enforcement agencies. PSN also provides funding to local and state agencies to assist them with departmental or agency operational needs. United States Attorney Town is the lone U.S. Attorney on the national Violent Crimes Reduction Coordinating Committee, which oversees the PSN program.
https://www.al.com/news/2018/10/north-alabama-task-force-targets-the-most-violent-criminals-and-repeat-offenders.html
Kern County Resident Admits to Aggravated Identity TheftRead the Press Release
FRESNO, Calif. —Hazel Turner, 44, of Tehachapi, pleaded guilty today to aggravated identity theft, United States Attorney McGregor W. Scott announced.
According to court documents, between February 2014 and March 2014, Turner used the means of identification of another person to falsify and electronically submit federal tax returns for the purpose of fraudulently obtaining money belonging to the United States.
This case was the product of an investigation by the Internal Revenue Service Criminal Investigations and the Kern County Sheriff’s Office. Assistant United States Attorney Melanie L. Alsworth is prosecuting the case.
Turner is scheduled to be sentenced by Judge Lawrence J. O'Neill on January 7, 2019. Turner faces a statutory penalty of 2 years in prison, a $250,000 fine, and up to 3 years of supervised release. 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.
Kenneth Nickerson Sentenced to 57 Months for Threatening to Assault A Social Security Administration EmployeeRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew B. Birge announced today that Kenneth L. Nickerson, 53, of Ludington, Michigan, was sentenced to 57 months in federal prison for threatening to assault a Social Security Administration employee. U.S District Judge Janet T. Neff imposed the sentence.
On June 6, 2017, Mr. Nickerson, who was upset about the level of Supplemental Security Income benefit payments he was receiving, threatened to physically assault a Social Security Administration Claims Specialist working in the Administration’s Ludington, Michigan office. Mr. Nickerson had to be removed from the building and was banned from reentering the property. A month later, on July 6, 2017, Nickerson returned to the vicinity of the Social Security Administration office and sat on a curb across the street. When questioned by officers, Nickerson said he was waiting for the Claims Specialist to finish working and exit the building, whereupon Nickerson planned to “beat him to death.”
“We take threats against federal employees seriously,” Birge said. “Anyone who threatens a federal employee just because he or she is doing their job will be prosecuted to the fullest extent of the law.”
Tracey Thanos, the Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Chicago Field Division echoed these comments. “Employee safety is of paramount concern to the Social Security Administration.” she said. “The Social Security Administration’s Office of Inspector General will investigate and pursue criminal prosecution of any individual who threatens our employees. We appreciate the U.S. Attorney’s Office for prosecuting this individual for this serious offense.”
The Social Security Administration – Office of Inspector General investigated the case. Assistant U.S. Attorney Clay Stiffler handled the prosecution.
END
Kansas City Man Pleads Guilty to Bank Robbery in LeawoodRead the Press Release
KANSAS CITY, KAN. – A Kansas City man pleaded guilty Monday to robbing a bank in Leawood, U.S. Attorney Stephen McAllister said.
Lorenzo Moore, 48, Kansas City, Mo., pleaded guilty to one count of armed bank robbery. In his plea, he admitted that on July 11, 2017, he robbed the BMO Harris Bank at 8840 State Line Road in Leawood, Kan. According to documents filed in federal court, Moore was carrying a messenger-style bag when he gave a clerk a note saying: “Bomb and gun, place money on counter, no alarms, no dye packs.”
Forensic analysis of the note Moore left in the bank revealed a fingerprint that led investigators to arrest Moore. Moore told investigators that during the robbery he put a small box on the counter so the teller’s imagination would “run wild.”
Sentencing is set for Jan. 14. He faces a sentence of up to 25 years in federal prison and restitution of $12,575. McAllister commended the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Iowa Nurse Who Took Pain Medications from Nursing Home Patients Pleads GuiltyRead the Press Release
An Iowa licensed professional nurse (LPN) who took pain medications from the residents of two nursing homes in 2016 and 2018 pled guilty today in federal court in Cedar Rapids.
Lacey Staveley, age 35, from Evansdale, Iowa, was convicted of one count of acquiring a controlled substance by misrepresentation, fraud, deception, or subterfuge, and one count of false statements relating to health care matters.
In a plea agreement, Staveley admitted that, in November 2016, while employed at the Cedar Falls Health Care Center, a nursing home in Cedar Falls, Iowa, she used her patients’ identities to obtain controlled substances, specifically pills containing hydrocodone, by accessing her patients’ prescribed medications and diverting those pain pills to herself. Staveley’s victims were each long-term residents of the nursing home who had chronic pain, and they were both on Medicare at the time. To cover up her scheme, Staveley destroyed an original medication log, placed it in a trash can, and replaced the log with a false medication log. When the nursing home discovered her theft, Staveley provided the nursing home with a fake urine sample that actually consisted of toilet water. Because the sample obviously had flecks of toilet paper in it and no urine color, the nursing home obtained an actual urine sample from Staveley. This second test was positive for opiates, marijuana, and hydrocodone. The nursing home terminated Staveley’s employment.
Staveley also admitted in her plea agreement that, in 2018, she was again working as a LPN for another nursing home in the Cedar Valley, this time Harmony House in Waterloo, Iowa. Staveley did not disclose her prior employment at the Cedar Falls Health Care Center to Harmony House. Then, in January 2018, Staveley took two oxycodone pills from a patient’s medication stocks and replaced the pills in the original blister pack with an anti-psychotic drug that did not provide relief from pain. This patient complained of pain constantly and complained of pain after he did not receive all of his medication. Staveley also admitted that she took four narcotic pills, containing Vimpat, from another nursing home patient and replaced those pills with an anti-seizure drug that had a similar shape and color. This second patient at Harmony House was non-verbal and could not complain of pain. Harmony House also terminated Staveley’s employment.
This prosecution is part of the Medicare Fraud Strike Force operations, which are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Staveley remains on bond previously set pending sentencing. Staveley faces a possible maximum sentence of 9 years’ imprisonment, a $500,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Iowa Medicaid Fraud Control Unit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2031.
Follow us on Twitter @USAO_NDIA.
Individuals Charged with Conspiracy to Distribute Marijuana in Utah, Other States Through Use of Mulitple Suppliers and DriversRead the Press Release
SALT LAKE CITY – Three individuals charged in a superseding indictment with conspiracy to transport hundreds of pounds of marijuana from California to Utah and throughout the United States were arraigned on the charges in federal court Friday morning. The indictment alleges the defendants used the drug organization to generate millions of dollars in marijuana cash proceeds to support various business ventures.
Charged in the indictment are Gabriel Seth Elstein, age 33, and Angela Christina Elstein, age 32, both of Park City, and Scott Dale Gordon, age 48, of St. George. A Utah company, Dumbles Holdings, LLC, is also named in the indictment. The Elsteins are managing members of Dumbles Holdings, which was established in 2015 with offices in Salt Lake City.
In addition to the drug trafficking conspiracy count, the 13-count indictment charges possession with intent to distribute a controlled substance, conspiracy to commit money laundering, promotion of money laundering, concealment money laundering, and money laundering. The indictment alleges the defendants obtained sizable quantities of marijuana for distribution from wholesale marijuana suppliers in northern California and recruited drivers to deliver marijuana loads from California to Salt Lake City, Minnesota, Illinois, and Wisconsin. They then utilized retail distributors to sell the marijuana in destination cities.
The indictment alleges the defendants committed overt acts in furtherance of the alleged drug distribution conspiracy. According to the indictment, the defendants used multiple marijuana suppliers and hired multiple drivers to transport the marijuana to Utah and around the country.
Count 4 of the indictment charges the three with conspiracy to commit money laundering. It alleges the defendants took steps designed to conceal and disguise the nature, location, source, ownership, and control of the proceeds of the drug trafficking organization. The count alleges that from at least April 2007 through December 2013, the defendants purchased and distributed at least 2,500 pounds of marijuana and laundered at least $5 million in marijuana drug proceeds through Bondad Productions, a business that promoted electronic music/rave shows, and The Complex, both Salt Lake City businesses.
Beginning in 2009 and continuing to September 2010, Gordon and Elstein began construction on a music venue called The Complex. The cost of the construction was at least $1.3 million. The indictment alleges that approximately $400,000 came from marijuana cash proceeds previously laundered through Bondad Productions and The Complex bank accounts. The remaining amount of approximately $900,000 was marijuana cash proceeds paid directly to companies and individuals involved in the construction. Specifically, the indictment alleges that Gordon made cash payments to an individual referred to as L.M., in the indictment. L.M. was functioning as the foreman for the construction project and was responsible for paying the construction companies involved in the project. The payments Gordon made to L.M. were shrink-wrapped plastic bags in $50,000 increments and made on almost a weekly basis.
The indictment further alleges that Gordon used marijuana cash proceeds to pay expenses for music shows.
“When it comes to marijuana, it’s all about the cash. Sophisticated organizations are driven by profits to exploit the insatiable desire for drugs in America. This multi-year investigation required the professional attention of federal agents with IRS-Criminal Investigation and the DEA Metro Narcotics Task Force. Without their hard work, there would not be consequences for drug traffickers and their associates who would try to hide under a disguise of seemingly lawful enterprise,” U.S. Attorney John W. Huber said today. “In Utah, the United States Attorney will pursue justice for marijuana criminal organizations who operate outside the bounds of the law.”
The indictment also seeks forfeiture of property derived from the proceeds of the alleged criminal conduct including The Complex located at 536 West 100 South, Salt Lake City and two properties in Park City located at 7467 Tall Oaks Circle and 4268 Hilltop Drive. The Complex is not being shut down and will remain open.Gabriel Seth Elstein and Scott Dale Gordon were initially charged in an indictment returned in February. Both were released on conditions of pre-trial release. Angela Christina Elstein was added to the superseding indictment in September. She was released at Friday’s hearing.
The defendants face a potential mandatory-minimum sentence of 10 years to life in prison if they are convicted of the conspiracy to distribute count in the indictment. They pleaded not guilty to the charges at Friday’s hearing and the case was set for trial on Dec. 14, 2018, before U.S. District Judge Clark Waddoups. Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.
Special agents of IRS-Criminal Investigation and the DEA Metro Narcotics Task Force are investigating the case. Federal prosecutors in the U.S. Attorney’s Office in Salt Lake City are prosecuting the case.
Indal Technologies Agrees to Pay $3.5 Million to Settle False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – The Department of Justice announced today that Indal Technologies Inc. (Indal) has agreed to pay $3.5 million to resolve allegations that it knowingly sold defective helicopter landing systems designed for U.S. Navy destroyers. Indal, of Ontario, Canada, is a division within Curtiss-Wright Corporation of Charlotte, North Carolina.
Since the 1970s, Indal has produced the Recovery, Assist, Secure, and Traverse (RAST) system attached to U.S. Navy’s Arleigh-Burke class destroyers. RAST systems allow helicopters to land on destroyers.
The RAST system includes a device that locks a hovering helicopter onto a trolley. Once locked in place, the helicopter moves along a series of steel track plates into a shipboard hangar. The trolley must remain securely connected to the track plates, because the helicopter may be required to land during rough seas and high winds. The Navy’s contracts for RAST systems expressly required track plates made of HY100 steel due to the material’s increased strength, combat ruggedness, and protection from corrosion.
The settlement announced today resolves allegations that Indal, without informing the Navy, knowingly substituted a different, less expensive type of steel in numerous RAST system track plates delivered to the Navy.
“When government contractors supply equipment to our armed forces that fail to meet performance standards, they not only cheat taxpayers, but can put service member lives at risk,” said Assistant Attorney General of the Justice Department’s Civil Division Joseph H. Hunt. “Today’s settlement demonstrates our commitment to ensuring our military receives products that meet its requirements and for which it has paid.”
“American taxpayers are entitled to get what they pay for under government contracts, and that is especially true when the health and safety of U.S. armed forces are at stake,” U.S. Attorney Carpenito said. “This office will continue to pursue and hold accountable those who, like Indal, defraud the government by providing substandard goods and services in order to enrich themselves.”
“Fraud is never a victimless crime. This case of using inferior materials damaged the readiness of U.S. forces. The victims are not just our men and women in uniform, but all American taxpayers. NCIS will continue to tirelessly pursue all those who seek to take advantage of the Department of the Navy and its interests while keeping the procurement system fair and honest,” said Special Agent in Charge Leo S. Lamont of the Naval Criminal Investigative Service.
This settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of New Jersey. In the District of New Jersey, the government was represented by Senior Litigation Counsel Anthony J. LaBruna and Assistant U.S. Attorney Mark Orlowski of the Civil Division, Newark.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Indal Technologies Agrees to Pay $3.5 Million to Settle False Claims Act AllegationsRead the Press Release
The Department of Justice announced today that Indal Technologies Inc. (Indal) has agreed to pay $3.5 million to resolve allegations that it knowingly sold defective helicopter landing systems designed for U.S. Navy destroyers. Indal, of Ontario, Canada, is a division within Curtiss-Wright Corporation of Charlotte, North Carolina.
Since the 1970s, Indal has produced the Recovery, Assist, Secure, and Traverse (RAST) system attached to U.S. Navy’s Arleigh-Burke class destroyers. RAST systems allow helicopters to land on destroyers.
The RAST system includes a device that locks a hovering helicopter onto a trolley. Once locked in place, the helicopter moves along a series of steel track plates into a shipboard hangar. The trolley must remain securely connected to the track plates, because the helicopter may be required to land during rough seas and high winds. The Navy’s contracts for RAST systems expressly required track plates made of HY100 steel due to the material’s increased strength, combat ruggedness, and protection from corrosion.
The settlement announced today resolves allegations that Indal, without informing the Navy, knowingly substituted a different, less expensive type of steel in numerous RAST system track plates delivered to the Navy.
“When government contractors supply our armed forces with equipment that fails to meet performance standards, they not only cheat taxpayers, but they put at risk the safety of our service members,” said Assistant Attorney General Joseph H. Hunt of the Department of Justice’s Civil Division. “Today’s settlement demonstrates our commitment to ensuring that the military receives products that meet its requirements and for which it has paid.”
“American taxpayers are entitled to get what they pay for under government contracts, and that is especially true when the health and safety of U.S. armed forces are at stake,” said U.S. Attorney Carpentino for the District of New Jersey.” This Office will continue to pursue and hold accountable those who, like Indal, defraud the government by providing substandard goods and services in order to enrich themselves.”
“Fraud is never a victimless crime. This case of using inferior materials damaged the readiness of U.S. forces. The victims are not just our men and women in uniform, but all American taxpayers. NCIS will continue to tirelessly pursue all those who seek to take advantage of the Department of the Navy and its interests while keeping the procurement system fair and honest,” said Special Agent in Charge Leo S. Lamont of the Naval Criminal Investigative Service.
This settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of New Jersey. The investigation was conducted by the Naval Criminal Investigative Service and the Defense Contract Audit Agency.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Hermon Woman Pleads Guilty to Heroin, Fentanyl and Crack Trafficking ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Erica Oliveira, 29, of Hermon, Maine, pled guilty today in U.S. District Court to conspiracy to distribute heroin, fentanyl and cocaine base, commonly known as “crack.”
According to court records, between January 2016 and February 2017, Oliveira conspired with others to acquire heroin, fentanyl and crack in Waterbury, Connecticut and distribute it in Penobscot County. The defendant allowed her Hermon residence to be used to distribute heroin and facilitated the drug dealing activities of others.
The defendant faces up to 20 years in prison, a $1,000,000 fine, and between three years and life on supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Health Care CEO Pleads Guilty to $150 Million Health Care Fraud Scheme Involving Harmful Injections and Unnecessary Prescription of Millions of OpioidsRead the Press Release
A health care CEO pleaded guilty today to a superseding indictment as part of an investigation into a $300 million health care fraud scheme that involved the distribution of over 6.6 million dosage units of controlled substances and the administration of medically unnecessary injections that resulted in patient harm.
Attorney General Jeff Sessions, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Region and Special Agent in Charge Manny Muriel of IRS Criminal Investigation (IRS-CI) Detroit made the announcement.
Mashiyat Rashid, 38, of West Bloomfield, Michigan, was the CEO of the Tri-County Wellness Group of medical providers in Michigan and Ohio, and pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud, and one count of money laundering. In connection with his plea agreement, Rashid agreed to the entry of a forfeiture money judgment in the amount of $51,396,917.70, as well as forfeiture to the United States of property traceable to proceeds of the health care fraud scheme, including over $11.5 million, commercial real estate, residential real estate, and a Detroit Pistons season ticket membership.
“The Department of Justice has made ending the opioid crisis a top priority and taken historic new steps to stop the spread of addiction,” said Attorney General Sessions. “That includes prosecuting important cases like this one. The defendant and physicians working for him allegedly flooded the streets with some 4.2 million unnecessary doses of drugs like oxycodone and required patients to undergo expensive and unnecessary back injections in exchange for pills. And while people were suffering, this corporate executive lived in luxury funded by ill-gotten gains. Today’s guilty plea helps us bring the defendant to justice and reduce the supply of illegal drugs flowing into our communities. And so I want to thank our FBI agents, our partners with HHS and IRS Criminal Investigation and everyone else who helped investigate and prosecute this case. Opioid prescription abuse is clearly a cause of some of the addiction we are seeing today. Successful conclusions of important cases like this one will have a great impact. We are not through yet. There will be more cases like this. Ending opioid prescription abuse is achievable and we intend to end it.”
“Health Care Fraud diverts taxpayer dollars from Medicare and lines the pockets of dishonest health care providers,” said U.S. Attorney Schneider. “This case is particularly troubling in that Rashid, through his clinics, made Michigan’s opioid crisis even worse by prescribing over six million dosages of medically unnecessary opioids to individuals who were already suffering from opioid addiction.”
“Health care fraud schemes such as these threaten the vital trust between a patient and his or her health care provider, undermine the integrity of our health care system, and cost all Americans billions of dollars,” said FBI Special Agent in Charge Slater. “Americans already struggling with health care issues and rising premiums are further burdened with each dollar lost to fraud. To those dishonest and unethical physicians and healthcare providers who prioritize profits over their pledge to provide honest services to those in need, the message should be clear: that the collective resources of local, state and federal law enforcement will expose these schemes and will bring you to justice.”
“Ensuring the appropriate prescribing and use of controlled substances is essential to protecting the health and safety of patients and the Medicare program,” said HHS-OIG Special Agent in Charge Pugh. “Health care professionals play a key role in combatting opioid misuse but some choose to exploit patients and commit criminal acts in order to pursue financial gain and when this happens the OIG and our law enforcement partners will be there to hold them accountable.”
“Hippocratic Oaths and Laws are in place for a reason and in this particular case, it’s about controlling medically unnecessary dosages and administered injections,” said IRS-CI Special Agent in Charge Muriel. “Mashiyat Rashid and others allowed greed to drive their moral compass, contributing to the growing opioid epidemic our nation is facing. IRS-CI and its law enforcement partners will painstakingly work, day in and day out, to catch these greedy healthcare providers in efforts to keep dangerous prescriptions off the streets of our communities.”
In connection with his guilty plea, Rashid stated that he was the CEO of Tri-County Wellness Group, and owned, controlled and operated numerous pain clinics, laboratories and other providers in Michigan and Ohio. As alleged in the superseding indictment, from 2008 until their arrest in 2017, Rashid and physicians working in Rashid’s clinics conspired to obtain patients by prescribing over 4.2 million dosage units of medically unnecessary controlled substances, including oxycodone, hydrocodone and oxymorphone, to Medicare beneficiaries, some of whom were addicted to narcotics. Some of these opioids were allegedly resold on the street.
As part of his plea, Rashid admitted that he conspired with physicians to require Medicare beneficiaries who wished to obtain controlled substances to submit to expensive, medically unnecessary, and painful injections. Rashid paid physicians based on the number of injections that Medicare paid for, regardless of the medical necessity of the injections. In turn, the physicians conducted these repetitive and unnecessary injections on patients in order to increase revenue for Rashid, themselves, and their co-conspirators. Rashid stated that the beneficiaries included vulnerable patients, including those addicted to opioids, who were willing to submit to unnecessary and painful injections in order to obtain pills.
When Medicare conducted a medical review of the injection claims, it determined that 100 percent of the claims were not eligible for Medicare reimbursement and summarily suspended the medical billing privileges of one of the pain clinics involved in the scheme. In order to conceal the continued billing of these fraudulent claims to Medicare, the guilty plea states, Rashid and others created new shell companies that they enrolled in Medicare to keep billing the same fraudulent claims, often changing only the name of the company on the door to the medical practice and/or inventing new suite numbers to conceal the continuation of the fraudulent practices at the same location.
Rashid also owned a diagnostic laboratory and caused physicians to order medically unnecessary urine drug testing from the laboratory. When Medicare conducted a medical review of claims submitted by the laboratory, it determined that 95 percent of the claims were not eligible for Medicare reimbursement. In order to conceal the continued billing of these fraudulent urine drug testing claims to Medicare, the guilty plea states, Rashid and others created a new corporate entity that they enrolled in Medicare so that physicians could keep ordering the same fraudulent urine drug testing claims through this new entity.
In addition, Rashid stated in his guilty plea that he paid illegal health care kickbacks to obtain patients and solicited illegal kickbacks and bribes for physicians to refer Medicare beneficiaries to specific third-party home health agencies, laboratories and diagnostic providers even though those referrals were medically unnecessary.
Further, Rashid pleaded guilty to committing money laundering in connection with a $6.6 million wire transfer on April 13, 2016. The superseding indictment alleges that Rashid transferred the proceeds derived from the conspiracy to live an extravagant lifestyle and spend millions of dollars on luxury clothes from retailers like Hermes, rare Richard Mille watches, and exotic automobiles such as a Lamborghini and Rolls Royce Ghost; a mansion and other real estate in the Detroit, Michigan area; and to sit courtside or in the first row of NBA basketball games, including the NBA Finals.
Rashid; Spilios Pappas, 61, of Monclova, Ohio; Joseph Betro, 57, of Novi, Michigan; Tariq Omar, 61, of West Bloomfield, Michigan; and Mohammed Zahoor, 51, also of Novi, were each charged in a superseding indictment with one count of conspiracy to commit health care fraud and wire fraud. Pappas, Betro, Omar, and Zahoor were each additionally charged with one count of health care fraud. All of the defendants were previously charged in an original indictment, along with Yasser Mozeb, 35, of Oakland County, Michigan and Abdul Haq, 72, of Ypsilanti, Michigan. Mozeb and Haq have pleaded guilty, along with 12 other defendants, including seven other physicians. The case is pending before U.S. District Judge Denise Page Hood of the Eastern District of Michigan. Trial has been scheduled to begin on Nov. 27 before Judge Hood. Rashid’s sentencing is set for April 11.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, HHS-OIG and IRS-CI. Trial Attorney Jacob Foster of the Criminal Division’s Fraud Section is prosecuting the case. The financial investigation into Rashid’s assets was conducted by a partnership between the FBI, IRS, U.S. Marshals Service, Department of Justice’s Health Care Fraud Unit, and the U.S. Attorney’s Office’s Forfeiture and Financial Litigation Unit. The group conducted an extensive pre-indictment investigation and continued to support the prosecution through today’s guilty plea. Assistant U.S. Attorney Shankar Ramamurthy and DOJ Trial Attorney Jacob Foster led the financial investigation.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and 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, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Harrisburg Man Sentenced to Five Years in Federal Prison for Dealing Heroin and Illegally Possessing a FirearmRead the Press Release
EUGENE, Ore. – Shawn Sherman Wilson, Jr., 27, of Harrisburg, Oregon, was sentenced today to 60 months in federal prison and five years’ supervised release for dealing heroin and illegally possessing a firearm.
According to court documents, law enforcement began investigating Wilson in July 2017 after receiving a tip from a confidential source that he was trafficking heroin in and around Eugene. An undercover agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) contacted Wilson and arranged to purchase an ounce of heroin. They agreed to meet on July 24, 2017 in front of Taylor’s Bar & Grill, a popular night spot in Eugene near the University of Oregon.
At the meeting location, the ATF agent entered Wilson’s car, sitting in the front passenger seat. Wilson had a Smith & Wesson 9mm semi-automatic pistol sitting between his legs with the pistol’s handle positioned for easy access. The agent said “I see you got the heat.” Wilson replied, “yeah, while I’m running around town.” Wilson grabbed the firearm and showed it to the agent, telling the agent the firearm belonged to his girlfriend and he was interested in purchasing another.
The ATF agent subsequently completed the heroin purchase, giving Wilson $1,200 in cash. Wilson was later arrested in Douglas County on August 6, 2017. When arrested, Wilson possessed a Smith & Wesson 9mm pistol matching the description of the firearm observed by the undercover agent during the controlled buy.
Wilson previously pleaded guilty to one count each of possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime on May 30, 2018.
This case was investigated by ATF and prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
The case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Garden City Man Was Armed While Selling Fentanyl-Laced HeroinRead the Press Release
WICHITA, KAN. – A Garden City man Monday admitted he was armed while selling a dangerous mixture of fentanyl and heroin, U.S. Attorney Stephen McAllister said.
Adrian Lashawn Perkins, 41, Garden City, Kan., pleaded guilty to one count of unlawful possession of firearms in furtherance of drug trafficking. The case began when Perkins sold drugs to undercover investigators. When they served a search warrant at Perkins’ apartment, investigators found packages of fentanyl-laced heroin and four guns including a 9 mm handgun on the floor, a .22 caliber pistol under a couch, a 9 mm handgun under the mattress at the foot of a bed, and a 9 mm handgun in an unlocked safe next to the bed.
Fentanyl is a powerful synthetic opioid that is considered dangerous even in small amounts. The Justice Department has issued warnings to first responders urging them to protect themselves from exposure to it.
Sentencing is set for Jan. 3. The parties have agreed to recommend a sentence of seven years in federal prison. McAllister commended the Garden City Police Department, the Finney County Sheriff’s Office and Assistant U.S. Attorney Matt Treaster for their work on the case.
The case was prosecuted under the Justice Department’s Project Safe Neighborhoods initiative.
Fourth Defendant Charged in Immigrant Kidnapping and Extortion Scheme Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on October 12, 2018, PASCUAL RODRIGUEZ, 50, a citizen of the Dominican Republic last residing in New York, New York, pleaded guilty in New Haven federal court to one count of kidnapping.
According to court documents and statements made in court, on multiple occasions, Rodriguez approached victims after they exited buses at the Port Authority in New York. The victims included women, men and children from Central American countries who did not speak English and were seeking asylum in the U.S. Rodriguez, sometimes posing as an immigration officer, falsely told the victims that their connecting bus was unavailable and asked the victims for a phone number of a family member in the U.S. He then contacted family members and informed them that the victims could not travel by bus, and that he would arrange for the transportation of the victims in exchange for money. He then brought the victims to his co-conspirator, Lucilo Cabrera, who then drove the victims around for hours, refusing to release them until their families agreed to pay money.
Rodriguez is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill in Bridgeport on January 4, 2019, at which time Rodriguez faces a maximum term of imprisonment of life.
Rodriguez has been detained since his arrest on January 23, 2018.
On March 9, 2018, a federal jury in Bridgeport found Cabrera, Francisco Betancourt and Carlos Antonio Hernandez guilty of offenses related to this extortion and kidnapping scheme. They also await sentencing.
This investigation has been conducted by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Vanessa Richards and Jacabed Rodriguez-Coss.