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Thursday 11 October 2018
6 Members of New Rochelle Drug Trafficking Organization and 3 Members of Bridgeport Drug Trafficking Organization Charged with Narcotics ConspiracyRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, John H. Durham, United States Attorney for the District of Connecticut, William F. Sweeney, Assistant Director in Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), James J. Hunt, Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), Brian D. Boyle, Special Agent in Charge of the New England Division of the DEA, Brian C. Turner, Special Agent in Charge of the FBI, New Haven, and Joseph F. Schaller, the Commissioner of the New Rochelle Police Department, announced the results of a coordinated operation earlier today, in which federal, state, and local law enforcement officers arrested six defendants in Westchester County, New York, and three defendants in Fairfield County, Connecticut.
Ten defendants are charged in two federal indictments, unsealed today. Seven of the defendants were charged in the Southern District of New York with conspiracy to distribute five kilograms and more of cocaine and 50 grams and more of methamphetamine in and around New Rochelle, New York, since at least April 2018. The U.S. Attorney’s Office for the District of Connecticut has charged an additional three defendants with narcotics offenses, including conspiracy to distribute 500 grams and more of cocaine. Those defendants arrested today who are charged in the federal indictment in the Southern District of New York were presented in White Plains federal court today before Magistrate Judge Paul E. Davison.
Manhattan U.S. Attorney Geoffrey S. Berman stated: “Our Office is committed to ridding New York neighborhoods of highly addictive and extremely dangerous drugs. And we will continue to help coordinate our efforts with other U.S. Attorney’s Offices and local and federal law enforcement agencies.”
Connecticut U.S. Attorney John H. Durham stated: “We allege that these individuals were responsible for bringing significant amounts of cocaine and methamphetamine into our state. I thank our federal, state and local law enforcement partners for their diligent efforts in these cases, and our counterparts in the Southern District on New York for coordinating with us in these investigations and today’s take down of the most significant members of this organization.”
FBI Assistant Director-in-Charge of the New York Field Office William F. Sweeney stated: “The distribution of illegal narcotics continues to be a scourge on our communities. As alleged, these defendants profited from trafficking cocaine and methamphetamines at the expense of those subjected to all the negatives wrought by these substances. Today’s charges should serve as a reminder that the FBI, through our Westchester County Safe Streets task force, will continue to target these offenders and the impact they are having on our communities.”
FBI Special Agent-in-Charge of the New Haven Office Brian C. Turner stated: “Despite the ongoing battle against the opioid crisis in our communities, this indictment should make it abundantly clear that we at the FBI, along with all of our law enforcement partners, have not lost sight of the other illicit drugs and those that traffic them. Together we will continue to pursue those that seek to pollute our communities.”
DEA New York Special Agent-in-Charge James J. Hunt stated: “Earlier this year, DEA joined forces with FBI and the New Rochelle Police Department to dismantle a drug trafficking organization operating in Westchester and Fairfield Counties. By shutting down this family-run methamphetamine operation, lives will be saved. I applaud the efforts of our law enforcement partners and the US Attorney’s Offices Southern District of New York and District of Connecticut.”
DEA New England Special Agent-in-Charge Brian D. Boyle stated: “DEA is committed to investigating and dismantling large-scale poly drug trafficking organizations like this one operating in the Bridgeport, Connecticut, area. As we all know, drug trafficking, along with the gun and physical violence that often accompanies it, ravages the very foundations of our families and communities. This investigation demonstrates the strength of collaborative local, state, and federal law enforcement efforts to seek and bring to justice anyone who engages in these crimes.”
New Rochelle Police Commissioner Joseph F. Schaller stated: “This is another example of the excellent work being performed by the joint federal, state and local drug enforcement task forces operating in Westchester and Fairfield Counties. The City of New Rochelle and the New Rochelle Police Department thank our law enforcement partners in this operation for their exceptional efforts and invaluable assistance in removing a significant number of dangerous drug traffickers from the streets of our city.”
As alleged in the Indictment unsealed today in White Plains federal court:
From April 2018 up to October 2018, ULYSSES LOPEZ, VALENTINO LOPEZ, and CHRISTIAN LOPEZ conspired to distribute five kilograms and more of powder cocaine and 50 grams and more of methamphetamine, and FELIPE BARAJAS, a/k/a “Felipe Barajas Gallegos,” JOSE OCEGUERA, a/k/a “Cande,” FELIPE CORTES, and SATURNINO OLIVER FARIAS, a/k/a “Genaro Robles,” conspired to distribute five kilograms and more of powder cocaine.
As alleged in the Indictment unsealed today in New Haven federal court:
From March 2018 through June 26, 2018, RAFAEL LOPEZ-MACIAS, a/k/a “Rafa,” a/k/a “Martin Sanchez,” JAIME LOPEZ, a/k/a “Compa,” and JUAN CARLOS FIGUEROA, a/k/a “Chaito,” conspired to distribute 500 grams or more of powder cocaine. In addition, on June 26, 2018, RAFAEL LOPEZ-MACIAS possessed with intent to distribute 500 grams and more of methamphetamine, and on June 7, 2018, JAIME LOPEZ possessed with intent to distribute a quantity of cocaine.
The defendants charged in White Plains federal court each face a maximum sentence of life imprisonment, and a mandatory minimum term of 10 years in prison. The defendants charged in New Haven federal court each face a maximum sentence of 40 years in prison, and a mandatory minimum term of five years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Berman and Mr. Durham praised the outstanding investigative work of the FBI, DEA, the Connecticut State Police, and the New Rochelle, Norwalk and Stamford Police Departments. Mr. Berman also thanked the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations for their assistance and the U.S. Attorney’s Office for the District of Connecticut for its ongoing coordination in the case.
This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
These cases are being prosecuted by Assistant United States Attorneys Emily Deininger and Celia Cohen of Southern District of New York’s White Plains Division, and by Assistant United States Attorneys Anthony Kaplan and Lauren Clark of the District of Connecticut.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
2 Florida Men Plead Guilty to Multimillion-Dollar Credit Card Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JAMES BECKISH and JOSEPH ANTHONY DEMARIA pled guilty to one count of conspiracy to commit wire fraud in connection with a scheme to make unauthorized charges on credit cards through sham companies that purportedly offered nutraceutical products for sale over the internet. BECKISH and DEMARIA pled guilty before United States District Judge Edgardo Ramos.
According to the Complaint, the Information to which BECKISH and DEMARIA pled guilty, and statements made during the proceedings today:
Between 2013 and 2017, BECKISH, DEMARIA and others, created and operated dozens of companies that purported to sell dietary supplements and similar products called “nutraceuticals” over the internet. The websites of the defendants’ companies purported to sell products like dietary supplements but, in reality, were primarily used to repeatedly bill consumers who never ordered their products, or even if they did, almost never received them. The defendants used these websites as a cover for unauthorized and recurring charges that were placed on thousands of credit card numbers that the defendants had purchased or obtained, or had acquired from consumers who had attempted to order the products in question. For example, in one email, DEMARIA asked BECKISH: “Are we shipping these guys actual nutra products? Lol.” To which BECKISH responded: “Nope.”
BECKISH, DEMARIA, and others created these different companies and websites, because they knew that credit card processors would stop doing business with them over time as consumers noticed the unauthorized charges and sought refunds. These refunds, called “chargebacks” by credit card processors, are generally low for legitimate businesses but reached extremely high percentages for many of the companies associated with the defendants’ scheme. In certain instances, the chargeback rates quickly approached or even exceeded 20 percent – that is, consumers were seeking refunds of more than 20 percent of the charges placed by certain of the defendants’ companies. Credit card processors, in turn, paid millions of dollars in refunds for fraudulent charges associated with the defendants’ companies between 2013 and 2017 in attempts to refund affected consumers.
In total, BECKISH and DEMARIA both pled guilty to causing more than $7 million in loss during the duration of the scheme.
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BECKISH, 32, of Miami, Florida, and DEMARIA, 33, of Miami, Florida, each plead guilty to one count of conspiracy, which carries a maximum sentence of five years in prison. BECKISH and DEMARIA also agreed to pay restitution and to forfeit $7,231,878. Sentencing for BECKISH is scheduled for January 16, 2019 at 12:30 p.m. before Judge Ramos. Sentencing for DEMARIA is scheduled for January 18, 2019 at 12:30 p.m. before Judge Ramos.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentence imposed on the defendants will be determined by the judge.
Mr. Berman praised the investigative work of the Secret Service.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Sassoon, Olga Zverovich, and Michael McGinnis are in charge of the prosecution.
Wednesday 10 October 2018
Wichita Man Pleads Guilty to Robbing a Quik TripRead the Press Release
WICHITA, KAN. - A Wichita man pleaded guilty today to robbing a Quik Trip in Wichita, U.S. Attorney Stephan McAllister said.
Samuel L. Vliet, 26, Wichita, Kan., pleaded guilty to one count of robbing a commercial business. In his plea, he admitted that on July 18, 2018, he robbed a Quik Trip at 110 S. Rock Road in Wichita. After Vliet left the store with money from the register, investigators lifted prints from a door where the clerk saw the robber touch the glass. The prints helped investigators identify Vliet and arrest him.
Sentencing is set for Jan. 3. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Kimberly Rodebaugh is prosecuting.
Westerly Resident Admits to Child Pornography ChargesRead the Press Release
PROVIDENCE – A Westerly man pleaded guilty in U.S. District Court in Providence today to receiving, possessing and distributing child pornography, and to transferring obscene material to a minor.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Jonathan Breslin, 33, admitted to the Court that he exchanged sexually explicit images involving minors with others via online social media applications. Breslin also admitted to sending sexually explicit images to a minor via the Internet and attempting to entice minors to create and share with him sexually explicit images and/or videos.
Breslin pleaded guilty to possession of child pornography, transferring obscene material to a minor, and two counts of receipt and distribution of child pornography, announced by United States Attorney Stephen G. Dambruch; Special Agent in Charge of Homeland Security Investigations Peter C. Fitzhugh; Superintendent of the Rhode Island State Police Ann C. Assumpico; Westerly Police Chief Richard G. Silva; and Warwick Police Chief Colonel Stephen M. McCartney.
According to court documents, Homeland Security Investigations learned from a Canadian law enforcement agency of 78 unique users who shared and/or communicated about child pornography on a social media application. Through further investigation, Homeland Security Investigations identified one of the IP addresses as belonging to Jonathan Breslin. The investigation into Breslin's online activities revealed a series of sexually explicit discussions about creating, distributing and the viewing of child pornography.
As part of the investigation, a Homeland Security Investigations agent posing as an individual interested in child pornography engaged Breslin in a series of communications. During the exchanges with the agent, Breslin discussed viewing, possessing and the attempted production of child pornography.
Additionally, the investigation determined that Breslin transferred obscene material online to a person under the age of 16 and attempted to entice a minor to engage in illicit sexual activity.
On August 9, 2017, a court-authorized search of Breslin’s residence by agents from Homeland Security Investigations, the Rhode Island State Police Internet Crimes Against Children Task Force, and members of the Westerly and Warwick Departments resulted in the seizure of a computer, a digital media storage device and cell phone all containing child pornography. A forensic audit of the electronic equipment revealed at least 275 images and 46 videos containing child pornography.
Breslin, who has been detained in federal custody since his arrest on August 9, 2017, is scheduled to be sentenced on January 10, 2019.
Possession of child pornography and transfer of obscene material to a minor are punishable by statutory penalties of up to 10 years in federal prison. Receipt and distribution of child pornography is punishable by statutory penalties of 5-20 years in federal prison.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The Rhode Island Internet Crimes Against Children Task Force is comprised of law enforcement personnel from the Rhode Island State Police, Homeland Security Investigations, and the Warwick, Cranston, East Providence, Newport, Pawtucket, North Kingstown, Bristol, and Woonsocket Police Departments.
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West Haven Man Sentenced to 140 Months for Drug Trafficking, Attempt to Destroy Body of Murder VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MAURICE WEARING, 29, of West Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 140 months of imprisonment, followed by five years of supervised release, for drug trafficking and his role in an attempt to destroy the body of a victim of a related murder with a homemade pipe bomb on July 4, 2015.
According to court documents and statements made in court, at approximately 11:00 a.m. on July 4, 2015, an explosion took place on Wintergreen Avenue in Hamden. Responding law enforcement located a deceased white male, who had been wrapped in plastic garbage bag material and bound by rope material, in a wooded area close to where the explosion had occurred. An explosive-type device and debris were also located in close proximity to the body. The victim, who had also sustained three apparent gunshot wounds, was subsequently identified as Edward Brooks, 39, of West Haven.
After West Haven Police informed investigators that Brooks had been residing with Christopher Miller at 59 Front Avenue in West Haven, and that Miller and other residents of 59 Front Avenue were subjects of an ongoing narcotics investigation, investigators executed a state narcotics search and seizure warrant at 59 Front Avenue and seized numerous items, including pipe bomb making materials that were consistent with the materials found at the Wintergreen Avenue explosion scene, approximately 16 grams of cocaine base (“crack cocaine), approximately 10.6 grams of methamphetamine and narcotics packaging material. Investigators also seized a surveillance DVR, which captured video surveillance from eight cameras placed around the residence.
The investigation revealed that, in the early morning hours of July 4, 2015, Miller shot Brooks three times with a firearm that was equipped with a silencer, at their residence. Miller and Wearing then wrapped Brooks’ body in plastic, drove the body to the wooded area in Hamden, placed a homemade pipe bomb underneath Brooks’ body, and detonated the pipe bomb in an attempt to destroy evidence.
The investigation further revealed that in the year prior to Brooks’ murder, Miller, Wearing and others distributed at least 1.6 kilograms of crack cocaine, as well as other narcotics.
On August 18, 2017, Wearing pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine base (“crack”), and one count of possession of an explosive by a convicted felon.
On April 5, 2017, Miller pleaded guilty to one count of possession of a firearm and explosive device in furtherance of a drug trafficking crime. On August 22, 2018, he was sentenced to 360 months of imprisonment.
Miller and Wearing also were charged with related state offenses.
This investigation was conducted by the Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Postal Inspection Service, Connecticut State Police and West Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Vanessa Richards in coordination with the State’s Attorney’s Office for the Judicial District of Ansonia-Milford.
Waterford Man Sentenced for Accessing Child Pornography Web SiteRead the Press Release
ALBANY, NEW YORK – Brian Napier, age 35, of Waterford, New York, was sentenced today to 36 months in prison for accessing a child pornography web site available only through an anonymous Internet network.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Senior United States District Judge Thomas J. McAvoy also ordered Napier to serve a 20-year term of supervised release following his release from prison, and to pay a special assessment of $15,300. Napier must also register as a sex offender following his release from prison.
As part of his plea, Napier admitted that in 2015, he accessed Playpen, an online forum through which registered users advertised, viewed, and distributed child pornography. Images and videos shared through the site were highly categorized according to victim age and gender, and type of sexual activity depicted.
Before the FBI seized the Playpen web site and shut it down, it was available only through an anonymous Internet network, which allowed users to access websites including Playpen without revealing their actual internet protocol address, geographic location, or other identifying information. Napier admitted that he logged into Playpen in order to access its child pornography content.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Vancouver Man Sentenced for His Actions that Caused the Diversion of a Delta FlightRead the Press Release
TULSA, Okla.— United States Attorney Trent Shores announced today that Bolutife Olusegun Olorunda, 29, of Vancouver, Washington, was sentenced to three months of probation for Assault Within Maritime and Territorial Jurisdiction.
On May 30, 2018, while on Delta Air Lines flight 1156, en route from Portland, Oregon, to Atlanta, Georgia, Olorunda verbally assaulted and interfered with a flight attendant on the aircraft. Due to his threatening behavior, the pilot and Captain of the aircraft declared an “emergency” and diverted the aircraft to Tulsa International Airport for an emergency landing.
“Airline passengers must follow the lawful directions of flight crew members. As this case shows, there are serious consequences when one does not abide by the rules of the flight. There are no exceptions. This defendant’s actions caused a flight to be diverted to Tulsa. Diverted flights are costly to the airlines and extremely inconvenient to other travelers,” said U.S. Attorney Trent Shores. “More importantly, defiant and belligerent behavior potentially places lives at risk. The crew and Federal Air Marshals are to be applauded for swiftly handling the situation and ensuring the safety of those aboard Delta flight 1156.”
As part of his Plea Agreement, Olorunda will also pay restitution to Delta Air Lines in the amount of $9,118 for the cost of diverting the flight for an emergency landing. Additionally, Olorunda will face a civil penalty, which includes significant fines from the Federal Aviation Administration and the Transportation Security Administration.
Olorunda faced a maximum sentence of six months in prison, a $5,000 fine, and one year supervised release. He was sentenced today in United States Magistrate Court by U.S. Magistrate Judge Jodi F. Jayne.
The case was investigated by agents with the Transportation Safety Administration’s Office of Law Enforcement, the Federal Bureau of Investigation, and the Tulsa Airport Police. Assistant U.S. Attorney Robert T. Raley handled the prosecution of this case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
U.S. Attorney Thomas T. Cullen Announces Progress in Making our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
Roanoke, VIRGINIA – 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.
Throughout the past year, the United States Attorney’s Office has partnered with all levels of law enforcement to reduce violent crime and make the communities and neighborhoods of the Western District of Virginia 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.”
“Reducing violent crime through the PSN initiative is my top priority,” said U.S. Attorney Cullen. “With the assistance of our federal, state, and local law-enforcement partners, we have made significant progress towards this goal in Danville and Roanoke. Over 20 alleged violent gang members are no longer operating on the streets of these communities, and we look forward to continuing our efforts there and expanding PSN to other localities in the Western District of Virginia.”
Led by U.S. Attorney Cullen, the Western District of Virginia’s PSN Initiative tasks federal prosecutors with targeting violent individuals, groups, and gangs within specific communities and, through vigorous prosecution, working to achieve meaningful reductions in the rates of violent crime. Over the past year there have been many highlights on the newly revitalized PSN program. Here are some examples of the most effective:
- Danville RICO Indictment: On June 14, 2018, federal, state, and local authorities announced the largest and most significant prosecution of organized gang activity in the Western District of Virginia in over a decade. “Read More”
- US v. Justin Stallings: On July 25, 2018, a federal grand jury charged a Danville man with committing numerous armed robberies of businesses in Danville, Bedford, and Rocky Mount. “Read More”
- Roanoke RICO Indictment: On October 1, 2018, federal, state, and local authorities announced federal racketeering conspiracy charge against four Roanoke gang members and associates. “Read More
In addition to vigorous enforcement efforts, the United States Attorney’s Office maintains strong partnerships with a variety of federal, state, and local law enforcement agencies throughout the Western District of Virginia. The United States Attorney’s Office collaborates on PSN initiatives with the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Drug Enforcement Administration, and, in its target enforcement areas, with the Danville Police Department, the Commonwealth’s Attorney for the City of Danville, the Roanoke City Police Department, and the Commonwealth’s Attorney for the City of Roanoke.
Moving forward into 2019, the United States Attorney’s Office will expand its PSN programs into more locations throughout the Western District to make the Western District of Virginia an even safer place.
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.
U.S. Attorney Matthew Schneider Announces Progress in Making our Communities Safer through Project Safe NeighborhoodsRead the Press Release
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.
“Project Safe Neighborhoods has been a long-standing weapon in our fight against violent gangs and gun crimes in Michigan,” United States Attorney Matthew Schneider said. “With this new revitalization of Project Safe Neighborhoods, we now have even more resources to go after violent offenders who seek to wreak havoc in our communities. Our success is a direct result of the hard work and commitment of our state and local law enforcement partners.”
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, the U.S. Attorney’s Office has continued to partner 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.”
“We are one community. When criminals prey on one of us, it hurts all of us,” said ATF Special Agent in Charge James Deir. “Because we are one community, ATF will never waver in our mission to protect the public from violent criminals.”
“Ensuring the safety and security of our residents in the city of Detroit is our number one priority. With the collaborative efforts of Project Safe Neighborhoods, we will continue our efforts to target and dismantle gangs, as well as, other violent offenders that pose a threat to the safety and wellbeing of our City,” said Assistant Chief James White.
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
Detroit is one of the original ten cities that participated in the rollout of Project Safe Neighborhoods in 2001. Since then, the U.S. Attorney’s Office has expanded its PSN efforts to cover the entire Eastern District of Michigan.
Since the revitalization of PSN in October 2017, the U.S. Attorney’s Office has increased its PSN caseload by 14%.
In the last few months, the United States Attorney’s Office has hired 18 new Assistant United States Attorneys to fill vacancies in the office. Six of these Assistant U.S. Attorneys are entirely new positions. Five are focusing on violent crime and gun prosecutions; one is focusing on immigration-related crimes. The office now has 120 full-time Assistant U.S. Attorneys. The Eastern District of Michigan covers 34 counties with a population of over 6.5 million residents
The U.S Attorney’s Office has been working closely with our state and local partners to ensure that federal efforts are focused on the most violent offenders. By incorporating the basic principles of the Detroit One Initiative along with PSN, we have created a unified approach, working in partnership with a large community of stakeholders to reduce violent crime. By utilizing available data and advances in technology, we have been able to identify offenders who are driving violent crime rates in certain areas of Detroit.
Given the success of PSN in the northwest area of Detroit, the Justice Department is providing additional PSN funding to the eastside of Detroit using the nearly $700,000 grant awarded last week. The funding will be utilized to enhance the suppression, prosecutorial and outreach activities identified as best practices to target violent crime and improve the quality of life for the community.
In addition, the Department of Justice announced last week that the City of Detroit was awarded $800,000 to be used to hire personnel to utilize the National Integrated Ballistic Information Network (NIBIN), to purchase technology required to operate a Crime Gun Intelligence Center and ammunition for ballistic tests of recovered weapons.
Information sharing is a key piece in this strategy. Two ways in which information is shared is through Project Green Light and Gun Stat. Project Green Light is a crime-fighting partnership between the City of Detroit, the Detroit Police Department and local businesses whereby real-time cameras are installed and connected directly to the Detroit Police Department headquarters where video feeds are received, monitored and analyzed. Information gathered from the surveillance cameras have proven useful in federal prosecutions. In one instance, the footage from one of the surveillance cameras lead to an indictment of a three-time convicted felon who was arrested and charged with being a felon in possession of a firearm after officers caught him trying to discard a firearm into a dumpster.
Another vital tool in sharing information is Gun Stat. Gun Stat is a partnership between the Detroit Police Department, the U.S. Attorney’s Office, Wayne County Prosecutor’s Office, the ATF, and the FBI. The purpose of GunStat is to focus on benchmarks that lead to an overall reduction of violent gun related crime. Specific emphasis is place on violent offenders and gun related cases. Law enforcement will review citywide gun arrests and look at whether the arrestee has certain characteristics that statistically contribute to violent gun related crimes. Such characteristics include if the arrestee is a gang member or an associate of a gang, has a prior arrest with a firearm, has a violent criminal history, is on probation or parole, was shot or has been a shooter, or has other gun related contacts. Based on these factors, law enforcement will prioritize resources and focus on those individuals who are more likely to engage in violent gun related crimes.
Community Partnerships
Another key component to any successful crime-fighting initiative is community engagement. The United States Attorney’s Office, along with our law enforcement partners and community members are actively involved in outreach programs as part of our prevention strategy. Two of those outreach programs are Ceasefire and Project Sentry.
Operation Ceasefire Detroit is a community based violence prevention partnership aimed at reducing violent crime. Under the program violent street group members on parole or probation are called in to meetings as a condition of their release. Participants include law enforcement officials who explain to the street groups that continued violence will result in prosecution and stiff prison sentences. Social service providers describe services that are available under re-entry programs to help street group members succeed outside of prison and residents of the street group members’ own communities -- clergy, ex-offenders and families of victims of violent crime describe in graphic and personal terms the consequences of violence in their neighborhood, and insist that the street group members help stop the violence. Call-ins occur quarterly at preselected locations within the City of Detroit. Following the hour long presentation, the speakers and participants have dinner and fellowship to reinforce the message: the community will assist every group member who wants to change his life for the better.
Project Sentry is a school-based youth engagement approach to reducing gun violence through prevention and deterrence strategies. The United States Attorney for the Eastern District of Michigan (USAMIE) is committed to educating youth on the dangers and consequences of gun violence. Like many USAMIE outreach efforts, Project Sentry relies on federal, state, and local law enforcement volunteers, along with other first responders to raise awareness about gun violence.
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.
• Detroit PSN focuses on the 8th precinct of Detroit. The 8th precinct, on Detroit’s west-side, historically has experienced some of the highest levels of violence in the city. According to statistics compiled by the PSN Michigan State University Research Partner, fatal and non-fatal shootings continued a downward trend that began in 2017. The first six months of 2018 experienced a 13% decrease from 2017 and a 28% decrease from 2016. When compared to the average number of fatal and non-fatal incidents that occurred from 2014 to 2016, the first six months of 2018 witnessed a 20% decline.
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.
U.S. Attorney John F. Bash Announces Progress in Making Our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
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.
“Attorney General Sessions has demonstrated tough and inspiring leadership in prioritizing the fight against violent crime,” said U.S. Attorney John F. Bash. “Our office and our federal, state, and local partners have focused considerable resources on areas in Central and West Texas that have struggled with violent crime in the past. In my view, this not just a law-and-order issue. It is also an issue of economic and social justice. When children in some communities grow up in constant fear of a sudden outbreak of random violence—when the simple act of walking to school is fraught with risk—their chance for success and happiness in life is inevitably diminished. We won’t ensure that every child in this Nation can succeed until we rid every community of gangs and gun violence.”
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
- San Antonio (Operation Triple Beam) – From September to December 2017 the U.S. Marshal’s Lone Star Fugitive Task Force partnered with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the San Antonio Police Department (SAPD), the Bexar County Sheriff’s Office (BCSO) and the Texas Department of Public Safety (DPS). The operation targeted gangs and violent fugitives resulting in approximately 200 arrests, the seizure of nearly 70 firearms, and the confiscation of approximately $170,000 worth of drugs.
- San Antonio – In 2017, gang violence came to a head in San Antonio when a four-year-old boy was the victim of a drive-by shooting. The child was shot in the head with a .223 round as he played video games in his home. The ensuing investigation, as well as others by the Federal Bureau of Investigation (FBI), ATF, USMS, SAPD, BCSO, and DPS, resulted in federal firearm and drug trafficking charges filed against dozens of individuals including members and associates of the local factions of the Bloods and Crips.
- San Antonio – ATF has worked with SAPD and DPS on the National Integrated Ballistics Information Network (NIBIN) Task Force. NIBIN’s ballistic technology links shell casings from one crime scene to firearms and casings found at crime scenes throughout the United States. In the area of gun violence, this effort has yielded 317 leads and 33 arrests and has resulted in 75 shootings being solved.
- Temple/Killeen – Federal authorities are working with local authorities to get violent criminals off the street. Since October 2017, authorities have filed federal firearms/drug charges against more than 80 convicted felons in the Temple/Killeen areas. These filings reflect a 319% increase in federal charges filed over the previous fiscal year for offenses in the same areas.
- Odessa – For 2015 and 2016, Texas Monthly declared Odessa the “Most Dangerous City” in Texas based on statistical information for violent crimes. The Odessa PSN Task Force (Odessa Police Department, Ector County Sheriff’s Office, DPS, FBI, USMS, Drug Enforcement Administration (DEA) and ATF) recognized and focused their investigative efforts on the growing number of firearm thefts and the resulting sale of those firearms to known criminal actors, narcotics distributors and gang members. As a result, federal prosecutions in 2017 for firearms violations increased almost 30% in the Midland/Odessa Division. Individuals charged federally had extensive criminal histories (5-20 previous events).
Community Partnerships
- The U.S. Attorney’s Office is currently working with two elementary schools in the San Antonio Target Enforcement Area to establish a volunteer program made up of the office’s employees. The children in this area live in neighborhoods marked by high levels of crime and households that often mistrust law enforcement officials. The school officials believe that law enforcement officers and the U.S. Attorney’s Office could provide these students with positive role models who can help guide them to a path for productive lives and help foster trusting relationships with law enforcement agencies.
Improvements to Community Safety Nationwide
- 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.
“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 U.S. 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 U.S. 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.”
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.
U.S. Attorney Charles E. Peeler Announces Progress in Making Georgia Communities Safer Through Project Safe NeighborhoodsRead the Press Release
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.”
“Project Safe Neighborhoods is a common sense approach to reducing violent crime by forming partnerships between the United States Attorney’s Office and federal, state, and local law enforcement and district attorneys to identify, arrest and prosecute the most violent individuals,” United States Attorney for the Middle District of Georgia Charles E. Peeler said. “I want to thank law enforcement across our district for their assistance with this initiative. It is making a real impact. Our office looks forward to continuing to work with our law enforcement and community partners to further reduce violent crime in the Middle District of Georgia.”
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
Since the revitalization of Project Safe Neighborhoods, the United States Attorney’s Office for the Middle District of Georgia has partnered with federal, state and local law enforcement officials in creating PSN Task Forces in Albany, Athens, Columbus, Macon, Americus and Valdosta. These task forces meet at least once a month to identify violent gun, gang and drug offenders for federal prosecution. Some examples include:
- In Albany, Georgia, the United States Attorney’s Office in coordination with the United States Marshals Service, Southeastern Regional Fugitive Task Force, Albany Police Department, Georgia Department of Community Supervision, Dougherty County Sheriff’s Office, Dougherty County Police Department and Dougherty County District Attorney’s Office conducted Operation Arrowhead resulting in more than 50 arrests of violent drug, gun and gang offenders. https://www.albanyherald.com/news/local/law-enforcement-agencies-announce-joint-crackdown-on-crime/article_e3d7e5da-07d4-5285-986b-68559523f1c5.html
- In Milledgeville, Georgia, a Project Safe Neighborhoods prosecution led to the conviction of over 13 defendants including one defendant, Delma Goddard, who will be facing a minimum mandatory sentence of 125 years in federal prison. https://www.macon.com/news/local/crime/article215849345.html
- In Macon, Georgia, in an effort to target violent offenders, the United States Attorney’s Office in coordination with the United States Marshals Service, Southeastern Regional Fugitive Task Force, Bibb County Sheriff’s Office, Bibb County District Attorney, FBI, ATF, and DEA launched Operation Shockwave which resulted in the arrest of 46 individuals, and removal of eight firearms and multiple pounds of ecstasy from the streets of Macon. https://www.macon.com/news/local/crime/article217017325.html
- In Columbus, Georgia ten defendants were indicted and arrested on Federal Firearms and Narcotics violations in a sweep coordinated by the United States Attorney’s Office, United States Marshals Service, Southeastern Regional Fugitive Task Force, Columbus Police Department, Georgia Department of Community Supervision, Muscogee County Sheriff’s Department, Muscogee County District Attorney’s Office, FBI, DEA and ATF. https://www.justice.gov/usao-mdga/pr/ten-indicted-and-arrested-federal-firearms-and-narcotics-violations-sweep
Community Partnerships
Business leaders across the Middle District of Georgia assist PSN Task Forces by evaluating Project Safe Neighborhood grant requests to ensure that federal money is used where it can make the biggest impact reducing violent crime. Partnerships between federal, state and local law enforcement, the private sector and community groups are instrumental to reducing violent crime across our district.
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.
- Since the formation of the PSN Task Forces in the Middle District of Georgia, the homicide rate in Albany, Georgia has dropped by 30% and in Columbus, Georgia by 10% during 2018.
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.
For further information, please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or [email protected].
Two Washington, D.C. Siblings Plead Guilty for Attack Outside D.C. CourthouseRead the Press Release
Washington, D.C. siblings pleaded guilty today for their April attack on a federal prosecutor and a murder victim’s daughter outside the Superior Court for the District of Columbia, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Maurice Hight, 28, pleaded guilty today to one count of felony assault on a federal official. Tiera Hight, 21, pleaded guilty today to one count of misdemeanor assault on a federal official and one count of misdemeanor assault in violation of District of Columbia Code. According to admissions made in connection with their plea agreements, on April 5, 2018, Maurice and Tiera Hight were in a courtroom in the Superior Court for the District of Columbia waiting for a verdict against their brother, who was being tried for murder. After the guilty verdict, Maurice and Tiera Hight exited the courthouse and waited outside. Several minutes later, the murder victim’s daughter exited the courthouse, escorted by a federal prosecutor. As they approached the street, Tiera Hight walked directly towards the pair and she and Maurice Hight began to circle them. Tiera Hight then began to spit on the murder victim’s daughter and physically attacked her. The federal prosecutor intervened, but Tiera Hight continued her attack. Maurice Hight then joined the fight, forcibly grabbing the federal prosecutor, pulling her down and punching her in the right side of the face with a closed fist. The federal prosecutor fell hard to the ground and sustained swelling and bruises to her face and arm. Two deputy U.S. Marshals in the area placed Maurice Hight under arrest, and Maurice Hight proceeded to spit in the face of one of the deputy U.S. Marshals.
“Our criminal justice system cannot tolerate violence against crime victims or those entrusted with enforcing our laws,” said Assistant Attorney General Benczkowski. “Today’s guilty pleas reinforce the Department of Justice’s steadfast commitment to prosecuting anyone who engages in vindictive attacks against victims of crime or federal officials.”
The Hights will be sentenced on Dec. 18 before Senior U.S. District Judge Paul L. Friedman of the District of Columbia.
The Criminal Investigations and Intelligence Unit for the U.S. Attorney’s Office for the District of Columbia investigated this case. Trial Attorneys Jennifer A. Clarke and Lauren Bell of the Criminal Division’s Public Integrity Section are prosecuting the case.
Two Fort Gibson Individuals Sentenced for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jeremy Moore, age 41, of Fort Gibson, Oklahoma, was sentenced to 235 months imprisonment and 5 years supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1), 841(b)(1)(A); and Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2.
Rose Marie Myers, age 40 and also from Fort Gibson, was charged in the same indictment as Moore and sentenced to 130 months imprisonment and 5 years supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1), 841(b)(1)(A); Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2; and Possession Of A Firearm In Furtherance Of A Drug Trafficking Crime in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A).
The charges against Moore and Myers arose from an investigation by the Drug Enforcement Administration (“DEA”) and the Oklahoma Bureau of Narcotics and Dangerous Drugs (“OBN”), as well as the Bureau of Alcohol Tobacco, Firearms and Explosives (“ATF”), the U.S. Marshal Service (“USMS”), the Muskogee Police Department (“MPD”), and the Muskogee County Sheriff’s Office (“MCSO”).
The Indictment alleged that beginning in or about June 2016, and continuing until the date of the indictment, within the Eastern District of Oklahoma and elsewhere, the defendants, willfully and knowingly conspired and agreed to commit the offenses against the United States of possession with intent to distribute and distribution of 50 grams or more of methamphetamine. It further alleged than on or about May 25, 2017 the defendants knowingly and intentionally possessed with intent to distribute 50 grams or more of Methamphetamine, a Schedule II controlled substance.
The Indictment additionally alleged that on or about May 25, 2017, in the Eastern District of Oklahoma, Myers knowingly possessed a firearm – a loaded RG .38 revolver – in furtherance of a drug trafficking crime for which she may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine.
United States Attorney Brian J. Kuester said, “The investigation and prosecution of Moore and Myers is a win for the communities in Eastern Oklahoma. If this duo had continued to carry out the plans of its conspiracy, thousands upon thousands more dosage units of Methamphetamine would have flowed into cities and towns in the Eastern District of Oklahoma and beyond. This office successfully prosecuted these defendants because of the ongoing joint cooperative efforts by the DEA, OBN, ATF, USMS, MPD, MCSO, and members of the United States Attorney’s Office.”
DEA Assistant Special Agent in Charge Richard W. Salter Jr. added, “This year-long investigation targeted an element of the United Aryan Brotherhood (UAB) prison gang, and further exposed how violent prison gang networks continue to operate with impunity from behind State Prison Walls using contraband cell phones. The combined efforts of the Muskogee PD, Muskogee County Sheriff’s Office, the U.S. Marshal, ATF, OBN, and the DEA, working in concert with the Eastern District U.S. Attorney’s Office proved successful once again in taking down yet another significant methamphetamine distribution cell operating in Eastern Oklahoma. The DEA will not relent in our efforts until our families and communities are free from this destructive poison.”
OBN Director John Scully stated, “For the Oklahoma Bureau of Narcotics, it is such an honor to work in collaboration with the U.S. Attorney’s Office for the Eastern District of Oklahoma and our other Law Enforcement partners. This collaborative effort is a great example of on-going police investigations that successfully disrupts and dismantles dangerous criminal enterprises such as this. With Defendants Moore and Myers off the streets, our communities will be safer for our children and all our citizens.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. Assistant United States Attorney Kristin Harrington represented the United States. The defendants will remain in custody pending transportation to the designated federal facilities at which the non-paroleable sentences will be served.
Twenty White County Defendants Charged with Wire Fraud for Unemployment Benefits SchemeRead the Press Release
LITTLE ROCK— Twenty defendants from White County have been charged in a conspiracy to commit wire fraud by allegedly obtaining unemployment insurance benefits to which they were not entitled in Arkansas and 15 other states.
Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Steven Grell, Special Agent-in-Charge, Dallas Region, U.S. Department of Labor Office of Inspector General, announced today the unsealing of an indictment returned by a federal grand jury charging the 20 defendants, including Mark King, aka “Big Head,” the alleged ringleader of the conspiracy. On Wednesday, King, 53, of Judsonia, and two other defendants (Alan Gentry and Benjamin Bradley) were arrested. Also, Natalie Floyd was already in federal prison, and Mark Scheffler was in the Arkansas Department of Corrections, both on unrelated charges.
Those arrested today will be seen Thursday by United States Magistrate Judge Beth Deere for plea and arraignment. The remaining defendants will be served with a summons to appear in federal court at a later date.
“Our office is committed to protecting the integrity of important federal programs,” U.S. Attorney Hiland said. “We will continue to work with the Office of Inspector General to investigate and prosecute anyone attempting to take advantage of these programs, which ultimately hurts taxpayers and those who truly need assistance.”
The charge stems from an investigation by the United States Department of Labor, in collaboration with the United States Attorney’s Office for the Eastern District of Arkansas, that began in the spring of 2016. Local law enforcement in the White County area also assisted in the effort.
The indictment alleges that the wire fraud conspiracy took place from June 2012 through August 2017. According to the indictment, King created employer business accounts in 16 states, including Arkansas, using fictitious business names. These fictitious businesses all had addresses in Arkansas. King then falsely reported to the various state unemployment agencies in these 16 states that the fictitious companies had paid wages to him and the other indicted and unindicted co-conspirators for work performed, when, in fact, that was not true. In turn, King and the other co-conspirators and unindicted co-conspirators then made claims for unemployment benefits and, because King did not contest the unemployment benefits on behalf of the fictitious businesses, these conspirators were paid by the Department of Labor.
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to the U.S. Department of Labor’s Unemployment Insurance programs,” Special Agent-in-Charge Grell said. “We will continue to work with our law enforcement partners to safeguard benefits intended for unemployed American workers,”
The indictment alleges that some of the co-conspirators claimed unemployment benefits while incarcerated, contrary to the eligibility requirement that a claimant must be available for work and actively seeking employment. The conspiracy resulted in a monetary loss exceeding $500,000.
The maximum statutory penalty for the charge is up to 20 years’ imprisonment, a fine of not more than $250,000, and supervised release of not more than three years.
The case is being investigated by the Department of Labor, Office of Inspector General, with assistance from the White County Sheriff’s Office, the Judsonia Police Department, the Searcy Police Department, and the Bald Knob Police Department. It is being prosecuted by Assistant United States Attorney Angela Jegley.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edar
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@EDARNEWSTangipahoa Man Sentenced to Prison for His Role in Stolen Identity Refund Fraud SchemeRead the Press Release
NEW ORLEANS – A Tangipahoa Parish man was sentenced to 50 months in prison for conspiring to defraud the United States, Principal Deputy Assistant Attorney Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana announced today.
According to the indictment, AARON DANIELS conspired with others to defraud the United States by submitting false tax returns that requested tax refunds. DANIELS obtained the names and social security numbers of people he was incarcerated with in the East Carroll Detention Center and provided that information to his co-conspirators to use to file false tax returns. In exchange for providing names and social security numbers, DANIELS was paid by his co-conspirators.
In addition to the term of imprisonment, United States District Court Judge Martin L.C. Feldman ordered DANIELS to serve three years of supervised release, and pay $11,584, in restitution to the IRS.
Principal Deputy Assistant Attorney Zuckerman and U.S. Attorney Strasser commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Hayden Brockett and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Syracuse Man Arrested on Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK – Martin Nicholson, age 31, of Syracuse, New York was arrested and charged today with one count of Sexual Exploitation of a Child and one count of Receipt of Child Pornography, announced United States Attorney Grant C. Jaquith, James Hendricks, Special Agent in Charge of the of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent George P. Beach II.
Nicholson was arrested today and appeared in federal court in Syracuse. He was ordered held without bail pending a hearing on October 15, 2018.
Martin Nicholson is charged with Sexual Exploitation of a Child, which carries a minimum sentence of 15 years and a maximum sentence of 30 years in prison. He is also charged with Receipt of Child Pornography, which carries a minimum sentence of 5 years and a maximum sentence of 20 years in prison. The defendant could also be fined up to $250,000.00 on each count and can be sentenced to a minimum of 5 years and up to life a life term of Supervised Release. Additionally, the defendant will be required to register as a Sex Offender, if convicted.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Martin Nicholson was arrested yesterday on related New York State charges and was released after he posted bail.
This case is being investigated by the Federal Bureau of Investigation (FBI) and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Lisa Fletcher.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.
Suspected Online Drug Dealer Indicted in Fentanyl Overdose DeathRead the Press Release
Assistant U. S. Attorney Michael A. Deshong (619) 546-9290
NEWS RELEASE SUMMARY – October 10, 2018
SAN DIEGO – Suspected drug dealer Trevon Lucas was indicted by a federal grand jury for distributing fentanyl that caused the death of a La Jolla resident, identified only as C.A.S. in court filings.
According to statements made by prosecutors at his detention hearing yesterday, C.A.S. was found dead in his mother’s home on the morning of June 30, 2018. Evidence obtained from C.A.S.’s cellular phone and a parking lot surveillance camera indicate he met Lucas to purchase prescription oxycodone pills around 11:20 p.m. the night before his mother found his body. Law enforcement officials recovered counterfeit oxycodone pills that contained fentanyl from C.A.S.’s residence, and the medical examiner has since identified fentanyl intoxication as the cause of death.
Lucas and three other residents of the Highland / San Bernardino area—Cenclair Fields, Donovan Carter, and Kevin Chandler—were also indicted for their roles in an ongoing conspiracy to distribute pharmaceutical pills containing hydrocodone. Law enforcement officials have gathered evidence indicating that Lucas and Carter posted advertisements on a well-known website to illegally sell prescription pills.
“Fentanyl is claiming record numbers of victims, most of whom don’t even know they’re swallowing a pill that’s laced with the deadly drug,” said U.S. Attorney Adam Braverman. “Those who sell fentanyl resulting in death will be held accountable for their callous and reckless disregard for human life.”
“We’re seeing a dangerous trend of drug dealers and cartels cutting various drugs with fentanyl, which is a recipe for death,” said District Attorney Summer Stephan. “When you sell fentanyl to another human being, you are providing them with toxic poison that can kill them in a matter of seconds. Even a tiny amount of fentanyl can be deadly, which is why we’re working with our partners at the U.S. Attorney’s Office, and Drug Enforcement Administration to address this disturbing trend.”
“Unless you buy your prescription pills from a legitimate pharmacy, it’s very likely you’ll get fake prescription pills laced with deadly fentanyl,” said DEA Special Agent in Charge Karen Flowers. “Individuals seeking to make an easy buck are putting fentanyl into fake pills and passing them off as legitimate prescription medications. DEA and our law enforcement partners will continue to target and relentlessly pursue the individuals who are selling fake prescription pills laced with deadly fentanyl to citizens in our community.”
Lucas, Carter, Chandler, and Fields made their initial appearances in federal court Friday, October 5, before U.S. Magistrate Judge Barbara L. Major, followed by a detention hearing yesterday morning. Judge Major detained Lucas based on the seriousness of the charges against him, while setting bonds for Fields, Carter and Chandler. Their next hearing is scheduled for November 9, 2018 before U.S. District Judge Cathy Ann Bencivengo.
Lucas is the fifth person since January to be charged in the Southern District of California with Distribution of Fentanyl Resulting in Death. This case involved a collaborative effort between the United States Attorney’s Office and the San Diego County District Attorney’s Office.
DEFENDANTS Case Number 18cr4224-CAB
Trevon Antone Lucas Age: 23 Highland, CA
Cenclair Marie Fields Age: 23 Highland, CA
Kevin Vandale Chandler Age: 24 Highland, CA
Donovan Adontas Carter Age: 23 San Bernardino, CA
SUMMARY OF CHARGES
Distribution of Fentanyl Resulting in Death – Title 21, U.S.C., Section 841(b)(1)(C)
Maximum Penalty: Mandatory minimum 20 years’ imprisonment up to life
Conspiracy to Distribute and Possess with Intent to Distribute Hyrdrocodone – Title 21, U.S.C., Sections 846 and 841(a)(1) & (b)(1)(C)
Maximum Penalty: 20 years
AGENCIES
Drug Enforcement Administration
San Diego Police Department
Homeland Security Investigations
California Department of Health Care Services
Federal Bureau of Investigation
San Diego County District Attorney’s Office
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Stoughton Man Charged with Distributing FentanylRead the Press Release
BOSTON – A Stoughton man was indicted today in federal court in Boston for distributing fentanyl and crack cocaine.
Matthew Pizarro, 30, was indicted on one count of distribution of fentanyl, one count of distribution of 40 grams or more of fentanyl, and one count of possession with intent to distribute 28 grams or more of crack cocaine. Pizarro was arrested in August 2018 on a criminal complaint and has been in custody since.
According to court documents, on July 30, 2018, Pizarro sold an undercover agent approximately 20 grams of fentanyl in exchange for $940. A few days later, Pizarro followed up with the undercover agent about purchasing more drugs. On Aug. 7, 2018, Pizarro sold the undercover agent 70 grams of fentanyl for $2,500. After the exchange, law enforcement arrested Pizarro.
The charges of distribution of 40 grams or more of fentanyl and possession with intent to distribute 28 grams or more of crack cocaine provide for a mandatory minimum sentence of five years and up to 40 years in prison, a mandatory minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. According to court documents, Pizarro has a prior drug conviction; therefore, he faces a mandatory minimum sentence of 10 years and up to life in prison, at least eight years and up to a lifetime of supervised release, and a fine of up to $8 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Sean Smith, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. Assistant U.S. Attorney Katherine Ferguson of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
St. Paul, Minnesota Man Sentenced to 10 Years in Prison for Using the Internet to Induce A Fresno Minor to Engage in Sexual ActivityRead the Press Release
FRESNO, Calif. — John Baker Rose, 77, of St. Paul, Minnesota, was sentenced today by United States District Judge Dale A. Drozd to 10 years in prison, followed by a ten-year term of supervised release, for using the internet to induce a minor in Fresno, Calfiornia to engage in illegal sexual activity, United States Attorney McGregor W. Scott announced. The court also ordered that Rose pay the minor victim $25,000 in restitution.
According to court documents, from approximately September 2015 through November 2015, Rose met a 14-year-old minor female from Fresno online and groomed her through buying her a computer, jewelry, and clothing. Rose traveled to Fresno on two occasions to engage in sexual intercourse with her.
This case was the product of an extensive investigation by the Fresno Office of Homeland Security Investigations (HSI), St. Paul, Minnesota and Fresno Police Departments. Assistant United States Attorney Brian W. Enos 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.
Software Company Owner Collected Payroll Taxes, then Failed to Pay Them over to the IRSRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania pleaded guilty in federal court to charges of willfully failing to pay over payroll taxes, United States Attorney Scott W. Brady announced today.
Amarender Tiparthy, 50, of Coraopolis, pleaded guilty to four felony counts before Senior United States District Judge Donetta Ambrose.
In connection with the guilty plea, the court was advised that Tiparthy willfully failed to account for and pay over payroll taxes totaling $2,285,807.70, including all relevant conduct, for the sixteen tax quarters in 2010 through 2013.
According to information provided during the guilty plea hearing, Tiparthy was the sole owner of Prodigy Software Group, Inc. ("Prodigy"), a Subchapter S business that provided companies and governmental entities with consulting services regarding information technology projects. The business model of Prodigy included the employment of individuals who then were assigned to various information technology projects pursuant to contracts negotiated and entered into by Tiparthy on behalf of Prodigy. Although Tiparthy collected payroll taxes for the sixteen tax quarters in 2010 through 2013, he failed to truthfully account for and pay over the taxes when due to the Internal Revenue Service.
Judge Ambrose scheduled sentencing for March 19, 2019 at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Tiparthy on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation, conducted the investigation leading to the conviction in this case.
Rockland County Man Charged with Manufacturing an Explosive Device and Transporting Explosives Across State LinesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that PAUL M. ROSENFELD has been charged in U.S. District Court for the Southern District of New York in connection with manufacturing an explosive device in his Rockland County residence. The defendant was presented before U.S. Magistrate Judge Paul E. Davison in White Plains federal court this afternoon.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Paul M. Rosenfeld concocted a twisted plan to draw attention to his political ideology by killing himself on the National Mall in Washington, D.C.—risking harm to many others in the process. Rosenfeld’s alleged plan for an Election Day detonation cut against our democratic principles. Thanks to outstanding coordination between local and federal law enforcement, Rosenfeld’s alleged plot was thwarted and he is now in federal custody.”
Assistant Director-in-Charge William F. Sweeney Jr. said: “As alleged in the complaint, Paul M. Rosenfeld planned to detonate a large explosive to kill himself and draw attention to his radical political beliefs. Had he been successful, Rosenfeld’s alleged plot could have claimed the lives of innocent bystanders and caused untold destruction. Fortunately, his plans were thwarted by the quick action of a concerned citizen and the diligent work of a host of our law enforcement partners and the FBI’s Joint Terrorism Task Force. I’d like to extend particular thanks to our partners with the Orangetown Police Department, the Rockland County Sheriff’s Office, the Rockland County District Attorney, the New York State Police, the New York City Police Department, and the Stony Point Police Department for their respective roles in bring this investigation to a safe conclusion.”
As alleged in the Complaint:[[1]]
In August and September 2018, ROSENFELD sent letters and text messages to an individual in Pennsylvania (“Individual-1”). These letters and text messages stated that ROSENFELD planned to build an explosive device and detonate it on November 6, 2018, on the National Mall in Washington, D.C. ROSENFELD’s stated reason for these acts was to draw attention to his political belief in “sortition,” a political theory that advocates the random selection of government officials.
On October 9, 2018, law enforcement agent stopped a car driven by ROSENFELD. ROSENFELD agreed to answer questions and, in an interview with law enforcement, stated that he ordered large quantities of black powder—an explosive substance—over the Internet, which he transported from a location in New Jersey to his home in Tappan, New York (the “Residence”). ROSENFELD stated, among other things, that he used approximately eight pounds of black powder to construct a large explosive device in the basement of the Residence, and that he installed certain components in the explosive device to ensure that he was killed in the blast. ROSENFELD reported that he had previously constructed smaller explosive devices and had conducted test detonations. He also indicated that he planned to detonate the larger explosive device on November 6, 2018, on the National Mall in Washington, D.C. in order to draw attention to sortition.
On October 9, 2018, law enforcement agents conducted a search of the Residence pursuant to a judicially authorized search warrant. In the basement, law enforcement agents found what appeared to be a functional explosive device weighing approximately 200 pounds (the “Explosive Device”). FBI bomb technicians removed the Explosive Device from the basement of the Residence and transported it to a safe location. Within the Residence, law enforcement agents also found, among other things, a fusing system for triggering explosive devices and what appeared to be empty canisters of black powder.
* * *
PAUL M. ROSENFELD, 56, of Tappan, New York, has been charged with one count of unlawfully manufacturing a destructive device, which carries a maximum sentence of 10 years in prison, and one count of interstate transportation and receipt of an explosive, which carries a maximum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists principally of agents of the FBI and detectives of the New York City Police Department. Mr. Berman also thanked the Rockland County Sheriff’s Office, the Stony Point Police Department, the Rockland County District Attorney’s Office, New York State Police, and the Orangetown Police Department for their valuable assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Michael K. Krouse is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Rochester Man Pleads Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – Dennis Chaney, 31, of Rochester, pleaded guilty in federal court to participating in a fentanyl drug trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, as a result of an ongoing drug trafficking investigation, agents and task force officers with the Drug Enforcement Administration learned that on March 12, 2018, Chaney intended to travel from New Hampshire to a location in Lawrence, Massachusetts to purchase 200 grams of a controlled substance. Agents conducted surveillance in the area of the transaction and observed Chaney’s vehicle arrive. They then followed the vehicle toward New Hampshire and passed the license plate and their observations on to the New Hampshire State Police. A trooper observed the vehicle and stopped the vehicle for traffic violations. The trooper subsequently used his drug detection dog who alerted to Chaney’s vehicle. A search warrant subsequently was executed on the vehicle, which resulted in the discovery of approximately 225 grams of fentanyl.
On March 14, 2018, Chaney telephoned his source in Lawrence, Massachusetts and ordered an additional 100 grams of a controlled substance. Agents conducted surveillance in the area of the transaction and observed Chaney’s vehicle arrive. They then followed the vehicle toward New Hampshire and passed the license plate and their observations on to the New Hampshire State Police. A trooper observed the vehicle and stopped the vehicle for traffic violations. The trooper subsequently used his drug detection dog who alerted to Chaney’s vehicle. A subsequent search of the vehicle resulted in the seizure of approximately 98 grams of fentanyl.
During the investigation, Chaney ordered and purchased approximately 845 grams of fentanyl.
Chaney is scheduled to be sentenced on January 22, 2019.
“This case is an example of the way that the law enforcement community is working together to stop the flow of fentanyl into the Granite State,” said U.S. Attorney Murray. “Those who chose to distribute this deadly drug should understand that they will be arrested and prosecuted. We will continue to use all resources at our disposal to protect the public from those who choose to bring fentanyl into New Hampshire.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and
Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky, Seth R. Aframe and Debra M. Walsh.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Resident of Quechee, Vermont Sentenced for Filing False Tax ReturnsRead the Press Release
CONCORD - Kurt Devoid, 60, of Quechee, Vermont, was sentenced to three years of probation, including six months of home confinement, for filing false income tax returns, announced United States Attorney Scott W. Murray.
According to court documents, Devoid is a self-employed painter. Devoid’s personal federal income tax returns for tax years 2010 through 2013 were prepared by a commercial tax preparation office in Lebanon, New Hampshire. On the returns, Devoid reported income he received from commercial customers of his painting business, but failed to report substantial income he received from his residential customers. Devoid’s failure to report the true amount of his personal income during the four year period caused a tax loss of $98,482 to the United States Treasury.
DeVoid, who previously pled guilty on May 10, 2018, also was ordered to pay $98,482 in restitution.
“The federal tax laws apply to all citizens,” said U.S. Attorney Murray. “Those who choose to submit false tax returns should understand that they will be caught by the IRS and will be referred for prosecution. The potential penalties for tax evasion far outweigh any personal advantage anticipated by those who seek to avoid paying.”
“Self-employed individuals like Mr. Devoid have a legal obligation to honestly report their income and timely pay their taxes,” said Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation’s Boston Field Office. “Those who willfully file false tax returns underreporting their taxable income and taxes owed steal from the public and damage our nation’s system of taxation. Violators will be prosecuted, punished, and obligated to repay their taxes along with substantial penalties and interest.”
The case was investigated by the Internal Revenue Service, Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Robert M. Kinsella.
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Queens Man Indicted for Strangling A Woman on Cruise ShipRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the Indictment of CARLOS BATISTA JR., charging him with strangling and suffocating the woman he was dating.
U.S. Attorney Geoffrey S. Berman said: As alleged, Carlos Batista Jr. assaulted his girlfriend while on a cruise, grabbing and choking her until she passed out. Thankfully others on the ship came to her aid. Now Batista is back on New York soil and must answer for his alleged criminal actions.”
According to the allegations in the Indictment and the Complaint[1]:
As alleged in the criminal Complaint and the Indictment, following a dispute on September 8, 2018, with his girlfriend, BATISTA grabbed, dragged, pushed, and pulled the victim through the hallways of the cruise ship. When the victim screamed for help, BATISTA covered her mouth and restricted her breathing, at one point causing the victim’s body to go limp. Ultimately, BATISTA dragged the victim into his cabin and continued to assault her until others on the ship, who responded to the screaming, were able to open BATISTA’s cabin door where they found BATISTA with his arm around the victim’s neck.
* * *
BATISTA, 22, of Elmhurst, New York, has been charged with one count of assault of a spouse, intimate partner, or dating partner by strangling or suffocating, which carries a maximum sentence of 10 years. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Ryan B. Finkel and Mathew Hellman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and Indictment, and the description of the Complaint and Indictment set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.
Previously Deported Dominican National Pleads Guilty to Identity Theft, Health Care and Welfare Fraud, Misuse of Social Security Numbers and Illegal ReentryRead the Press Release
PROVIDENCE, RI – A previously deported Dominican national pleaded guilty in U.S. District Court in Providence today to charges that he reentered the country illegally, and then used the identities and Social Security numbers of others without their knowledge to fraudulently obtain health care and welfare benefits.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Carlos José Portes-Ortiz, 38, of Pawtucket, pleaded guilty to health care fraud, welfare (SNAP) fraud, misuse of Social Security numbers, aggravated identity theft, and illegal reentry.
Portes-Ortiz was among more than 600 individuals in 58 districts charged last spring and summer by the Department of Justice and United States Attorney’s Offices for their participation in fraud schemes, particularly health care and welfare fraud schemes.
Portes-Ortiz, a.k.a. Juan Carlos Mendieta Vega, a.k.a. Anthony Clausell Rivera, a.k.a. Jose Jimenez Agosto, a.k.a. Willian Acevedo Gil, a.k.a. Allison Gabriel, was deported from the United States in February 2009, after having been sentenced in June 2007 to 37 months in federal prison for conspiracy to import 100 grams or more of heroin and 500 grams or more of cocaine. Portes-Ortiz was arrested in June 2005 at Newark Liberty International Airport after arriving from the Dominican Republic.
According to information presented to the Court, in November 2015, Providence Police responded to a traffic accident and encountered Portes-Ortiz, who presented officers with a Dominican driver’s license in the name of another person. He was arrested on charges of driving under the influence and driving after denial, suspension or revocation of a driver’s license.
In March 2017, Portes-Ortiz was arrested in Dedham, MA, after attempting to purchase over $1,000 worth of iPhone and iPad equipment using a driver’s license depicting his photograph and a credit card both in the name of a female. At the time of his arrest, Portes-Ortiz was found to be in possession of a Rhode Island Neighborhood Health Plan card, a Rhode Island EBT card for SNAP benefits, a Rhode Island identification card, a Puerto Rican driver’s license and a bank debit card, some depicting his photograph but all in names other than his own. It was later determined through fingerprints that the person arrested was actually Portes-Ortiz.
An expansive investigation led by local agents from the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations determined that Portes-Ortiz used multiple names and stolen personal identifying information to gain Rhode Island ID cards; Medicaid and health care benefits, including medical, pharmaceutical and dental services; and EBT cards and SNAP benefits.
The investigation also determined that Portes-Ortiz was employed at a retail store while, at the same time, fraudulently obtaining federal program benefits and services using stolen identities and identifying information.
Portes-Ortiz, detained in federal custody since his arrest on June 27, 2018, is scheduled to be sentenced on January 10, 2019.
Portes-Ortiz’s guilty plea is announced by United States Attorney Stephen G. Dambruch; Phillip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General; Rebecca J. Adducci, Interim Field Office Director for ICE Enforcement & Removal Operations; Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations; and Bethanne M. Dinkins, Special Agent in Charge of the Northeast Region of the United States Department of Agriculture Office of Inspector General.
The case is being prosecuted by Assistant U.S. Attorneys Ly T. Chin and Terrence P. Donnelly.
The matter was investigated by agents from the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations; Homeland Security Investigations - Immigration and Custom Enforcement; U.S. Social Security Administration, Office of Inspector General; and U.S. Department of Agriculture, Office of Inspector General.
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Pharmacist Who Owned and Operated a Baltimore Pharmacy Pleads Guilty to Federal Drug Distribution Conspiracy Charges Involving Fraudulent Prescriptions for Oxycodone and AlprazolamRead the Press Release
Baltimore, Maryland – David Robinson, age 49, of Baltimore, Maryland, pleaded guilty today to a drug conspiracy involving the distribution of oxycodone and alprazolam. Robinson, a licensed pharmacist who owned and operated the Frankford Family Pharmacy, admitted that he dispensed oxycodone and alprazolam outside the scope of professional practice and not for a legitimate medical purpose.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Interim Commissioner Gary Tuggle of the Baltimore Police Department.
“Pharmacists who divert pharmaceutical drugs for illegal purposes betray the trust placed in them and further the tragic cycle of addiction and the epidemic of opioid overdose deaths,” said U.S. Attorney Robert K. Hur. “Abuse of pharmaceutical drugs is one of our most significant drug enforcement challenges.”
According to Robinson’s plea agreement, a confidential source advised law enforcement that the pharmacist at Frankford Family Pharmacy knowingly filled fraudulent prescriptions for alprazolam and oxycodone at the pharmacy. During the DEA’s investigation, between January and July 2016, the confidential source made a number of controlled purchases from Robinson at the pharmacy, using blank prescriptions provided to the source by DEA. Robinson knew that the prescriptions were fraudulent because he told the source what name to use on the prescription and what quantity of oxycodone tablets to write on the prescriptions. Robinson also told the source to include non-controlled medications on the same prescriptions in order to evade law enforcement. Between April 2015 and June 2017, Robinson fraudulently distributed approximately 12,330 units of alprazolam, with a street value of $2 per milligram, and 10,000 milligrams of oxycodone, with a street value of $1 per milligram.
DEA investigators also learned that during Robinson’s tenure as a pharmacist working the night shift at a pharmacy in Waldorf, Maryland, Robinson also filled fraudulent prescriptions for oxycodone. Robinson admitted that he wrote prescriptions using the names of prominent athletes provided to him as the purported patients. Between September and December 2015, Robinson admitted that he dispensed at least 85,500 milligrams of oxycodone outside the scope of professional practice and not for a legitimate medical purpose.
Search warrants were obtained for Robinson’s residence, for the Frankford Family Pharmacy, for his vehicle, and for a safe deposit box rented by Robinson. Law enforcement recovered $159,862 in cash from Robinson’s home; $46,927 in a briefcase, blank prescriptions, a prescription pad, and a loaded 9mm pistol from Robinson’s car; and $60,486 in cash, an AR-15 rifle with a magazine, several boxes of ammunition for the rifle, and records, invoices, and receipts from the pharmacy. In addition, law enforcement recovered $25,041 in cash, $4,500 in gold coins, and $1,010 in silver coins from a safe deposit box.
Robinson and the government have agreed that if the Court accepts the plea agreement, Robinson will be sentenced to 51 months in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for February 25, 2019 at 2:00 p.m.
In a separate case, licensed pharmacist Richard Daniel Hiller, age 64, of Owings Mills, Maryland, pleaded guilty on August 24, 2018, to distributing oxycodone in exchange for sexual favors. In that case, Hiller admitted that between January 2014 and February 2017, he filled fraudulent prescriptions, distributing approximately 20,500 15 milligram oxycodone pills. Hiller faces a maximum sentence of 20 years in prison at his sentencing on November 15, 2018, at 10:00 a.m., before U.S. District Judge Ellen L. Hollander.
The Robinson 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.
United States Attorney Robert K. Hur commended the DEA and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Kenneth S. Clark and Samika N. Boyd, who are prosecuting the case.
Pennsylvania man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Kevin J. Washington, Jr., of Glenolden, Pennsylvania, was sentenced today to 63 months incarceration for a drug distribution charge, United States Attorney Bill Powell announced.
Washington, age 30, pled guilty to one count of “Distribution of Oxycodone” in July 2018. Washington admitted to selling oxycodone in Ohio County in February 2016.
Assistant U.S. Attorney Robert H. McWilliams, Jr., prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp., Jr. presided.
Pee Dee Re-Entry Job Fair & ExpoRead the Press Release
Myrtle Beach, South Carolina ----–The United States Attorney’s Office, the South Carolina Department of Probation, Parole and Pardon Services; SC Department of Employment and Workforce; SC Works; SC Vocational Rehabilitation; SC Department of Social Services; and the US Probation Office are continuing their statewide partnership to help individuals with prior criminal backgrounds secure employment.
The Third Annual Pee Dee Reentry Job Fair & Expo will be held on Wednesday, October 24, 2018, from 10:00 am to 1:00 pm at the Horry Georgetown Technical College Conference and Business Center, located at 950 Crabtree Lane, Myrtle Beach, SC 29577
This fair, which targets the Pee Dee region of the State, is one in a series of fairs held annually, including in the Low Country, the Upstate, and the Midlands. The partner organizations believe that these tailored expos, for people with a criminal background, will provide some focused help for the particular obstacles individuals face after returning home, particularly in securing employment.
The first two Pee Dee Reentry Job Fairs were hosted in Florence, South Carolina where more than 500 job seekers attended over the two years, combined. The opportunity to host this year’s fair in Myrtle Beach will expand the availability of resources to new employers and job seekers alike.
Professional dress is required. Job seekers should inquire with Marcos Barahona of the US Probation Office at [email protected] or George Whitehead at (803) 734-9143, (803) 667-1258 or [email protected] if they have any questions about the event. Employers should contact Kimberly Burke at [email protected] or make inquiry at [email protected].
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Pedro Silva Segura Sentenced to Federal Prison for Conspiracy to Transport Undocumented Aliens Resulting in DeathRead the Press Release
In San Antonio today, Senior U.S. District Judge David A. Ezra sentenced 47–year-old Pedro Silva Segura to 108 months in federal prison followed by five years of supervised release for his role in an undocumented alien smuggling operation that resulted in ten deaths last year, announced U.S. Attorney John F. Bash and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
“Today’s lengthy sentence is a reminder that the penalties are very severe for anyone who participates in the dangerous business of illegally transporting human beings in tractor trailers. Time and again, we have seen this practice result in the loss of life of the most vulnerable among us. We will be relentless in prosecuting this very serious crime,” stated U.S. Attorney Bash.
“As this sentence makes clear, those who exploit people in this brutal and disgraceful way will face serious consequences themselves,” said Special Agent in Charge, Shane Folden, HSI San Antonio. “Alien smugglers view their clients as nothing more than a commodity and they have no qualms about collecting their smuggling fees.”
On March 8, 2018, Silva pleaded guilty to one count of conspiracy to transport undocumented aliens resulting in death. By pleading guilty, Silva admitted to operating a stash house in Laredo, TX, used as a holding area for undocumented aliens awaiting transportation to final destinations in the U.S. Silva further admitted that approximately five undocumented aliens left the stash house on the night of July 22, 2017, and were delivered to a truck driven by James Matthew Bradley, Jr., that was bound for San Antonio.
According to court records, which Silva and Bradley admitted in court were factually correct, San Antonio Police Department (SAPD) officers responded to a call at the Wal-Mart store located at 8538 Interstate 35 in San Antonio shortly after midnight on Sunday, July 23, 2017. An officer encountered a tractor-trailer behind the store, finding a number of people standing and lying in the rear of the trailer, and the driver, Bradley, in the cab. At the scene, law enforcement officers discovered 39 undocumented aliens. Of the 39 aliens found at the scene ten (10) died, eight (8) died in the trailer and two (2) died later in area hospitals. There were four juveniles, aged 14-17 years old, within the group of aliens in Bradley’s trailer who were unaccompanied by an adult. Court records further state that the undocumented aliens estimated the trailer contained between 70 and 180 to 200 people during transport. They also described differing fees for being transported.
On October 16, 2017, Bradley pleaded guilty to federal charges in connection with this investigation. On April 20, 2018, Judge Ezra sentenced Bradley to life imprisonment.
The U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated this case together with ICE Enforcement and Removal Operations (ERO), the San Antonio Police Department and the San Antonio Fire Department. The Bexar County Sheriff’s Office and the U.S. Customs and Border Protection’s Border Patrol assisted in this investigation. Assistant United States Attorneys Christina Playton and Matthew Lathrop prosecuted this case on behalf of the Government.
Project Safe Neighborhoods 2.0Read the Press Release
The Attorney General announces the anniversary of the launch of PSN 2.0
PRESS RELEASE
Indianapolis–Josh J. Minkler, the United States Attorney, announced the Attorney General’s renewed commitment and dedication to stemming the gun violence epidemic through the launch of Project Safe Neighborhoods 2.0 (PSN).
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the more 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.”
In the Southern District of Indiana, the Justice Department’s commitment has yielded strong and continued partnerships across law enforcement and newly cultivated relationships with non-traditional partners aimed at recognizing the district’s violent crime challenges and taking action steps to reduce the number of non-fatal shooting victims.
United States Attorney Minkler and a team of criminal Assistant United States Attorneys led by Deputy Chiefs of the Criminal Division Barry Glickman and Todd Shellenbarger have demonstrated steeled determination to target the district’s most violent, habitual gun-toting felons for federal prosecution. This renewed focus has yielded 180 federal PSN cases investigated in large part by the Bureau of Alcohol Tobacco and Firearms, Indianapolis Metropolitan Police Department, Marion County Sheriff’s Department, Evansville Police Department, and the Indiana State Police. Recently, the Federal Bureau of Investigation created a new group comprised of one special agent and three task force officers to complement the district’s PSN work and augment resources devoted to gun violence victims and important PSN investigations.
In addition to increased number of criminal prosecutions, the Department awarded in excess of $2 million in grant funds to agencies and organizations within the district whose focus is aligned with PSN:
Date
Recipient
Amount
Grant Focus
09/24/18
Indianapolis Metropolitan Police Department
$798,000
Crime Gun Intelligence Center
10/1/18
City of Indianapolis
Mayor Joseph Hogsett
$456,891
PSN
10/1/18
John H. Boner Community Center
CEO James Taylor
$999,913
Community-Based Crime Reduction Program (CBCR)
10/2/18
Indiana Criminal Justice Institute Executive Director David Murtaugh
$421,952
PSN
10/4/18
Marion County Prosecutor’s Office
$277,968
National Integrated Ballistics Information Network Focus
United States Attorney Minkler’s efforts including conceptualizing a PSN Strategic Plan and a non-traditional outreach portfolio have been recognized nationally and locally, culminating in a national nomination of the district’s PSN Task Force efforts.
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Owners of currency exchange business that made $600 million convicted of fraudRead the Press Release
ATLANTA – The co-owners and chief operating officer of one of the largest Iraqi dinar exchangers in the United States were convicted by a federal jury following a five-week trial. Tyson Rhame, James Shaw, and Frank Bell were each convicted of mail and wire fraud conspiracy, as well as multiple counts of mail and wire fraud. Rhame and Bell were also convicted of making false statements to federal law enforcement agents.
“These executives engaged in a lengthy campaign to defraud investors by spreading lies about the investment potential of the Iraqi dinar,” said Acting U.S. Attorney Kurt R. Erskine. “These convictions resulted from years of investigation, which included dozens of electronic and physical search warrants, hundreds of witness interviews, and extensive financial analysis.”
“The conviction of these three defendants is the result of an extensive effort by the government to protect investors from those who make unsubstantiated claims about the potential revaluation of a foreign currency,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Their greed led them to steal the hopes of unsuspecting investors and ultimately led them to their demise. The FBI and its partners make it a priority to root out and punish anyone who preys on investors for their own selfish desires.”
“This was a trial about fraudulent inducements, conspiracy, investment fraud and outright greed,” said Thomas J. Holloman, Special Agent in Charge, IRS-Criminal Investigation. “Rhame, Shaw, and Bell saw an opportunity to build their personal net worth and business position in the currency market by seizing on investors’ desire for high returns on their investments. At the end of the trial, the jury agreed with the government and found the Sterling Currency Group co-owners and chief operating officer guilty of the conspiracy and the underlying frauds. Despite the challenges these complex cases present, IRS-CI is committed to working with our partners at the FBI, and the U.S. Attorney’s Office to show white-collar fraud is still an investigative priority.”
According to Acting U.S Attorney Erskine, the charges, and other information presented in court: Rhame and Shaw owned and operated the Sterling Currency Group, which was once one of the country’s largest sellers of the Iraqi dinar. Bell was Sterling’s chief operating officer. Between 2010 and June 2015, Sterling grossed over $600 million in revenue from the sale of the Iraqi dinar and other currencies, while Rhame and Shaw received over $180 million in distributions.
The evidence at trial established that the defendants took steps to make investors believe they would get rich by investing in the Iraqi dinar. At one point, Rhame posted information on Sterling’s website falsely suggesting that the dinar was about to revalue. At other times, Rhame and Bell falsely claimed that Sterling would cash out investors at airports around the country following a dinar “revaluation.” The defendants also paid substantial sums of money to third parties who in turn spread false information about the dinar on conference calls and Internet chat rooms.
Tyson Rhame, 53, and James Shaw, 55, both of Atlanta, Georgia, and Frank Bell, 55, of Decatur, Georgia, were convicted of conspiracy to commit mail and wire fraud and multiple mail and wire fraud counts. Rhame and Bell were also convicted of making false statements to federal agents regarding Sterling’s operations. The jury acquitted the defendants of money laundering charges. A fourth defendant, Terrence Keller, was acquitted of all charges at trial.
This case is being investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorneys Thomas J. Krepp, Alison B. Prout, and Kamal Ghali, Deputy Chief of the Cyber and Intellectual Property Crime Section are prosecuting the case. Assistant U.S. Attorneys Kelly K. Connors and Dahil D. Goss are handling the parallel civil forfeiture actions related to this 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.
Oakland Gang Members Sentenced to Prison for Racketeering Conspiracy and Use of Firearm to Commit MurderRead the Press Release
OAKLAND – Two members of the West Oakland gang, Acorn, were sentenced for their respective roles in a criminal racketeering conspiracy, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The Honorable Phyllis J. Hamilton, Chief United States District Judge, today sentenced Jermaine Earnest, a/k/a “Acorn Maine,” to 37 years in prison, following a guilty plea entered by the defendant on May 2, 2018. The Honorable Phyllis J. Hamilton previously sentenced John Devalier Daniels, a/k/a “Lil Jon,” to 14 years in prison on September 5, 2018, following a guilty plea entered by the defendant on May 7, 2018. Both defendants admitted being involved with murder, robbery, and distribution of controlled substances.
According to his plea agreement, Earnest, 28, of Oakland, admitted that he became involved with the Acorn gang in or about 2006. He acknowledged that he agreed to participate in the Acorn gang’s activities to help achieve its objectives, including shooting members of rival gangs. Among the crimes Earnest committed for Acorn was a shooting that occurred on April 16, 2014. Earnest admitted that on the morning of April 16, he carried a gun and rode in a car with other Acorn members to a rival gang’s neighborhood. When Earnest saw a man he believed was a rival gang member, he fired several shots at the victim who died as a result of his injuries.
A federal grand jury indicted Earnest on October 16, 2014, for illegal gun possession in September 2014, a superseding indictment was subsequently filed on June 18, 2015, adding additional charges related to the April 16, 2014 shooting, and a second superseding indictment was filed on January 25, 2018. On May 2, 2018, Earnest pleaded guilty to the following charges from the second superseding indictment: racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); using a firearm during and in relation to a crime of violence causing death, in violation of 18 U.S.C. § 924(j)(1); and using a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c).
Daniels, 31, of Oakland, also admitted he was a member of the Acorn gang. Daniels admitted he was a member of the Acorn gang and was the driver of the rental vehicle used in the April 16, 2014 drive-by shooting to which Earnest admitted. Daniels also admitted he was engaged in narcotics trafficking and robbery as part of his support for the Acorn gang.
Daniels was named as a defendant in the June 18, 2015 superseding indictment, and the January 25, 2018, second superseding indictment. On May 7, 2018, Daniels pleaded guilty to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d), in the second superseding indictment.
In addition to the prison terms, Chief District Judge Hamilton also ordered each of the defendants to serve five years of supervised release.
The case is the result of an investigation by the FBI and the Oakland Police Department (OPD).
North Suburban Financial Adviser Charged with Fraud for Allegedly Swindling $2.5 Million from Elderly ClientsRead the Press Release
CHICAGO — The U.S. Attorney’s Office in Chicago today filed a criminal fraud charge against a north suburban financial advisor for allegedly swindling more than $2.5 million from elderly clients.
LUCITA ZAMORAS owned a number of companies in Niles, including First Fidelity Financial Group LLC, JQH Ventures LLC, and Cornerstone Home Solutions. Zamoras held herself out as a financial adviser specializing in retirement planning, and targeted elderly individuals, particularly immigrants, according to a criminal information filed in U.S. District Court in Chicago. Zamoras falsely claimed that client funds would be invested in safe, low risk investments, when, in fact, she spent some or all of the money on personal and business expenses, including gambling costs, payroll expenditures, credit card payments, airline tickets, car payments, and utilities, the information states.
Zamoras attempted to conceal the scheme by using newly raised investment funds to make Ponzi-type payments to earlier investors, the charge alleges. Zamoras intentionally failed to disclose these payments to both the new and earlier investors, the information states. From 2009 until August of this year, Zamoras defrauded at least a dozen investors out of approximately $2.5 million, the information states.
The information charges Zamoras, 55, of Chicago, with one count of mail fraud. Arraignment in federal court in Chicago has not yet been scheduled.
The information was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Jeffrey A. Monhart, Regional Director of the Chicago office of the U.S. Department of Labor, Employee Benefits Security Administration; and Tanya Solov, Director of the Illinois Securities Department of the Illinois Secretary of State’s Office. Valuable assistance was provided by the Chicago Regional Office of the U.S. Securities and Exchange Commission, which previously filed a civil enforcement action against Zamoras. The government is represented by Assistant U.S. Attorney Jacqueline Stern.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Mail fraud is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
North Carolina Man Facing Federal Indictment for the 2002 Murder of an Employee of an Upper Marlboro BusinessRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Levy Steven Moore, age 48, of Pollocksville, North Carolina, on the federal charge of murder resulting from using, carrying, brandishing, and discharging a firearm during and in relation to a crime of violence. The indictment was returned on August 27, 2018, and unsealed at Moore’s initial appearance today.
The indictment 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, Baltimore Field Office; Chief Henry P. Stawinski III of the Prince George’s County Police Department; and Prince George’s County Sheriff Melvin C. High.
According to the indictment, on October 25, 2002, Moore and at least one other accomplice planned to rob the victim employee of the cash belonging to the business. The victim employee made a cash deposit of business funds and obtained money to be used in the operation of the business at a bank in Capitol Heights, Maryland. The indictment alleges that as the victim was returning to the car with a money bag containing the business’ funds, Moore robbed the victim of the money and shot the victim, who collapsed to the ground. The indictment alleges that Moore then got into the getaway vehicle driven by his accomplice. According to the indictment, while fleeing the scene the robbers struck the victim’s vehicle, ran over the victim, and left the victim lying in the bank parking lot.
If convicted, Moore faces a maximum sentence of death. The Attorney General will determine whether or not to seek the death penalty. Moore had his initial appearance in U.S. District Court in Greenbelt, before U.S. Magistrate Judge Charles B. Day today. Moore will complete his state sentence in North Carolina on unrelated charges, before returning to Maryland.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI, the Prince George’s County Police Department, and the Prince George’s County Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys William D. Moomau and Gregory Bernstein, who are prosecuting the case.
New Prosecutors Added to U.S. Attorney's Office in Louisville to Combat Violent Crime and Fraud Against the TaxpayersRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman announced today that his office has added five new Assistant United States Attorneys; a historic addition, boosting the prosecutorial caseload of the office to tackle violent crimes through the Project Safe Neighborhoods initiative and increasing the office’s ability to combat fraud against the taxpayers.
“I could not be more excited to swear-in these talented and motivated new Assistant U.S. Attorneys today,” stated U.S. Attorney Russell Coleman. “As they embody “putting our money where our mouth is” in promising to tackle violent crime and drug trafficking in our Commonwealth.”
The addition of the five new federal prosecutors is part of a promise to crack down on violent crime in the 53 Counties of the Western District of Kentucky. With the addition of the new Assistant United States Attorneys the office now employs more than 40 full-time federal prosecutors. This increase in prosecutorial resources also includes three Assistant U.S. Attorneys in the Paducah field office; a first-ever long term dedication of this level of resources to the Purchase and Pennyrile areas of the Commonwealth.
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 a commitment to aggressively reduce violent crime across the country, including all 53 counties in the Western District through true partnerships with all levels of law enforcement. Last month, U.S. Attorney Coleman announced that 84 total federal gun cases in Louisville had been brought this calendar year of as part of the PSN program in an effort to crack down against violent criminal activity in Jefferson County, with other indictments targeting violent offenders to be announced later this year.
“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.”
The new Western District of Kentucky Assistant United States Attorneys include:
- Ann Marie Blaylock comes to the office from the United States Department of Justice in Washington, D.C where she served six-years, most recently as a Senior Trial Attorney in the Money Laundering and Asset Recovery Section of the Criminal Division. She successfully prosecuted the United States v. Eric Christopher Conn case. The Harvard Law School graduate also secured a conviction against former FBI counterintelligence agent Robert Lustyik.
- Hannah Choate joins the office from private practice working regulatory compliance matters, government and internal investigations, and complex commercial litigation as a law firm associate in Washington D.C. and New York. Hannah has represented clients since 2012 in multiple high profile cases before the Department of Justice and the Securities and Exchange Commission. Hannah graduated from New York University School of Law, and graduated summa cum laude with a B.A. in Political Science and Global Studies from the University of Tennessee.
- Nicole Elver served as the past four-years as a partner with a law firm in Louisville conducting investigations and representing clients in criminal and civil and regulatory matters involving financial crimes, such as money laundering, fraud and securities fraud. Nicole also served as an associate with another law firm in Louisville from 2009 to 2014, and as staff attorney with the U.S. Securitas and Exchange Commission from 2001 to 2008; Nicole graduated with honors from Marquette University Law School.
- Alicia Gomez comes to the office after nearly eight years as an Assistant Commonwealth Attorney in Jefferson County. She is an experienced trial attorney with a wide range of cases, including murders and sexual offenses, drug crimes and firearms offenses. Most recently she worked with the Heroin Rocket Docket and the Special Victims Unit. Alicia graduated from both undergraduate and law school from the University of Louisville.
- Timothy Thompson is a 2011 graduate of the University of Kentucky College of Law where he graduated with honors and served as the Editor-in-Chief of the Kentucky Law Journal. Following law school, Tim clerked for two years for Judge Gregory Van Tatenhove in the United States District Court for the Eastern District of Kentucky. Following his clerkship, and for the past five years, Tim has practiced in Louisville and was a member of his law firm’s business litigation practice team where he represented various types of corporate clients, defending them from claims like breach of contract, fraud, negligence, consumer protection, and federal civil rights.
New Jersey Resident Convicted of Threatening to Murder Congressman, StaffRead the Press Release
CAMDEN, N.J. – A New Jersey resident was convicted by a federal jury today of two counts of threatening to murder U.S. Rep. Frank LoBiondo and members of the congressman’s staff, U.S. Attorney Craig Carpenito announced.
Joseph Brodie, 39, of Millville, New Jersey, was convicted in Camden federal court following a seven-day trial on two counts of making threats to officials, officers and employees of the United States – specifically, for threatening to murder LoBiondo’s chief of staff and threatening to murder LoBiondo, his chief of staff, his veterans affairs liaison, and all of the staff of the Mays Landing office. The jury deliberated for approximately six hours before returning the verdict.
According to documents filed in this case and the evidence presented at trial:
In the spring of 2017, Brodie reached out to LoBiondo seeking assistance with the medical care and treatment that Brodie was receiving from the Veterans Administration. Over the course of the next few months, Brodie spoke and corresponded with the congressman’s Veterans Affairs Liaison and a caseworker, both of whom assisted him with appointments and meetings regarding his medical care. On Sept. 19, 2017, Brodie contacted the congressman’s office and spoke to the chief of staff on the phone. Brodie wanted the chief of staff to arrange a meeting with the congressman, but the chief of staff refused. During this phone call, Brodie became angry and ultimately threatened the life of the chief of staff – calling him “a dead man.”
Approximately an hour and a half later, Brodie sent an email to the congressman’s veterans’ affairs liaison as well as the caseworker, threatening their lives as well as the lives of the congressman and his staff in the Mays Landing Office. In this email, Brodie stated that he wanted to meet the congressman “face to face” and he pointed out “how easy” it was to find the congressman’s Mays Landing Office. Brodie also attached a terrain map of the area, with the area around the congressman’s office enlarged for detail and a red pinpoint location marker on the office. Writing about the map, Brodie stated, “[i]t even shows the environment and surrounding terrain, parking lots, wooded areas, etc., (like the kind a highly trained Combat Infantryman would use)…”
On the same day as the threats, Brodie sent text messages to his fiancée stating: “I threaten the life of a Congressman’s Chief of Staff. I’m pretty sure the Secret Service are going to investigate.” He also wrote that he was “prepared” for any law enforcement officers who might respond to his home. He wrote, “I’ll give them a chance to leave. If not, it’ll be First Blood Part II Type Shit (if you never saw that Rambo movie.” Brodie also wrote, “I won’t surrender. It’s not in me.” The same day, Brodie spoke to his fiancée on the phone and told her that he was going to an address in New Jersey, that he had GPS coordinates in his car, and that he was going to kill LoBiondo’s chief of staff, and that there was going to be a “blood bath.”
One week later, in a statement recorded by the FBI, Brodie confessed to having made the phone threat to the chief of staff on Sept. 19, 2017, and to having sent the email threat on Sept. 19, 2017.
The evidence showed that at the time Brodie made these threats, Brodie owned several firearms and a large amount of ammunition at his home.
U.S. Attorney Craig Carpenito credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the U.S. Capitol Police, under the direction of Chief Matthew R. Verderosa; officers from the N.J. State Police, under the direction of Col. Patrick J. Callahan; and the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae, with the investigation leading to today’s conviction.
The counts on which Brodie has been convicted are punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing will be scheduled at a later date.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Jason Richardson, of the Camden office.
New Jersey Man Sentenced to 8 Years in Federal Prison for Robbing Killingworth BankRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LAVON YOUNG, 39, of Union City, New Jersey, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 96 months of imprisonment, followed by three years of supervised release, for bank robbery.
According to court documents and statements made in court, at approximately noon on January 27, 2018, YOUNG and David C. Earl drove to a Key Bank branch located on East Main Street in Branford, and planned to rob the bank. They both exited the car wearing dark upper-body clothing. YOUNG also wore a dark, hooded sweatshirt and a green “scream mask” over his face. Earl wore a mask over his lower face, sunglasses over his eyes, and a red-hooded sweatshirt under his overcoat. The two men walked up to the bank entrance and pulled on the doors, but they were locked. They returned to their car and drove off.
Less than an hour later, YOUNG and Earl drove to a TD Bank branch on Route 81 in Killingworth. Dressed the same way when they had attempted to enter the Key Bank in Branford, YOUNG and Earl entered the TD Bank, told everyone to get down and demanded money from the tellers or else they would “blow their heads off.” Earl possessed a pellet gun during the robbery. A teller handed over multiple stacks of bills, totaling $9,754, and YOUNG and Earl fled.
YOUNG and Earl threw most of the money out of the windows of their car while driving from the bank, and while being pursued by law enforcement. They were eventually apprehended by East Haven Police. Investigators successfully recovered $9,479 of the $9,754 taken during the robbery.
YOUNG and Earl have been detained since January 27, 2018. On July 11, 2018, YOUNG pleaded guilty to one count of bank robbery.
Earl, also of Union City, New Jersey, pleaded guilty to the same charge on May 15, 2018. He awaits sentencing.
YOUNG’s criminal history includes a federal conviction for robbing a bank in Linden, New Jersey, in December 2008. In May 2013, he was sentenced in the District of New Jersey to 63 months of imprisonment and three years of supervised release. He was released from federal prison in March 2017 and committed the Killingworth bank robbery while on supervised release. Supervised release violation proceedings for YOUNG are pending in the District of New Jersey.
This matter was investigated by the Federal Bureau of Investigation, Connecticut State Police, Branford Police Department and East Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys Henry Kopel and Douglas Morabito.
Multi-Convicted Felon Charged with Firearm ViolationRead the Press Release
PITTSBURGH, Pa. - A resident of Penn Hills, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating the federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on October 9, named Christian Burrus, age 36, as the sole defendant.
According to the indictment, on July 23, 2018, Burrus unlawfully possessed a Ruger 9 millimeter pistol and ammunition, after having been convicted of multiple crimes punishable by more than one year in prison. Those convictions include one conviction for possession with intent to deliver a controlled substance and three convictions for firearms violations. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The law provides for a maximum total sentence of up to 10 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, along with the Penn Hills Police Department, conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Monroe County Man Sentenced to 63 Months’ Imprisonment for Role in Heroin and Cocaine Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Anton Woodson, age 34, of East Stroudsburg, was sentenced yesterday by Senior U.S. District Court Judge James M. Munley to serve 63 months in prison for his role in a Monroe County-based heroin and cocaine trafficking conspiracy.
According to United States Attorney David J. Freed, Woodson previously pleaded guilty to conspiracy to distribute more than 100 grams of heroin and cocaine during 2014. Woodson admitted to being responsible for distributing between 100 grams and 400 grams of heroin, which translates to between approximately 4000 and 16,000 retail bags of heroin.
Woodson was one of seven people charged by a federal grand jury in a superseding indictment in March 2015. The others charged—Eddie Pace, Shawnette Isaac, Daryl Trent, Myron Owens, William Young, and Catherine Abbey—all have entered guilty pleas in the case. Trent was sentenced to 90 months’ imprisonment on drug and gun charges, and Isaac was sentenced to 30 months’ imprisonment for her role in the drug conspiracy. The other defendants, including Pace who was the leader of the drug ring, are awaiting sentencing.
Judge Munley also ordered that Woodson serve four years on supervised release following his prison sentence.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police from Monroe County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Mexican Citizen Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Alejandro Quintero-Marquez, age 33, and a citizen of Mexico, pled guilty today to illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Quintero-Marquez was removed from the United States to Mexico three times, the most recent removal occurring on July 30, 2010. On July 28, 2018, an ICE Officer arrested him in Walton, New York. Quintero-Marquez admitted that he returned to the United States without permission following the July 30, 2010 removal.
Quintero-Marquez faces up to 2 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States District Judge Thomas J. McAvoy on February 11, 2019. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by ICE-ERO and is being prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Maryland Convicted Sex Offender Sentenced to 35 Years for Committing Another Sex OffenseRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced William Patrick King (36) to 35 years in federal prison for attempted production of child pornography. King had pleaded guilty on February 22, 2018.
According to court documents, King met a 17-year-old girl from Tampa on a teen dating website. He falsely told her that he was 18 years old, when in fact he was then 34 years old. King communicated with the teen using Facebook, Skype, and by phone and text messages. He asked her to produce and send him explicit photos and engaged in nude video chats with her.
King has two prior sex offense convictions in Maryland that involved children.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case 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 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.
Marion County man admits to methamphetamine distribution and a firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – William A. Six, of Fairmont, West Virginia, has admitted to selling crystal methamphetamine and having a firearm near a school, United States Attorney Bill Powell announced.
Six, age 27, pled guilty to one count of “Distribution of Methamphetamine” and one count of “Possession of a Firearm in a School Zone.” Six admitted to selling crystal methamphetamine, also known as “Ice,” in Marion County in September 2017. Six also admitted to having a 12-gauge shotgun, and a semi-automatic rifle on the grounds of Washington Irving Middle School in Harrison County in September 2017.
Six faces up to 20 years incarceration and a fine of up to $1,000,000 for the drug charge and faces up to five years incarceration and a fine of up to $250,000 for the firearms in a school zone charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Three Rivers Drug Task Force, and the Fairmont Police Department investigated.U.S. Magistrate Judge Michael John Aloi presided.
Manager of Kenner Post Office Arrested by Federal AuthoritiesRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced today the arrest of RYAN S. CORTEZ, Manager of Customer Service Operations at the North Kenner Post Office located at 390 West Esplanade Avenue. CORTEZ, age 46, of Des Allemands, Louisiana, was arrested by special agents with the United States Postal Service, Office of Inspector General (“Postal OIG”) for Misappropriation of Postal Funds or Property, in violation of Title 18, United States Code, Section 1711.
According to a criminal complaint affidavit filed in federal court, Postal OIG agents were notified by PayPal and eBay regarding significant quantities of U.S. Postal stamps being sold by CORTEZ on eBay. A subsequent investigation by Postal OIG revealed that, as manager, Cortez had increased the Kenner North Post Office’s reserve stamp stock by more than $600,000. Subpoenaed records from CORTEZ's Regions Bank account revealed substantial deposits, including more than $58,000 in a one-month period in the summer of 2018.
During their investigation, Postal OIG agents determined CORTEZ withdrew thousands of dollars on a regular basis at the Harrah’s Casino in New Orleans. Harrah’s records revealed CORTEZ lost over $667,000 since 2011 and lost over $220,000 in 2017. Postal records indicate CORTEZ earned an annual salary of $70,818.
On October 10, 2018, Postal OIG special agents executed a federal search warrant issued by a federal magistrate judge at CORTEZ’s residence in Des Allemands. Postal agents arrested CORTEZ at the Kenner North Post Office earlier this morning.
The criminal complaint also indicates that CORTEZ embezzled approximately thousands of dollars from the Des Allemands Mennonite Church in Des Allemands, LA.
In total, Postal records reveal that CORTEZ stole over approximately $630,000 in U.S. stamps and sold them on eBay. According to Postal authorities, CORTEZ’s illegal activities constitute one of the largest internal Postal theft by a Postal Service employee in the history of the U.S. Postal Service.
U. S. Attorney Strasser reiterated that a Complaint is merely a charge and that the guilt of a defendant must be proven beyond a reasonable doubt.
If convicted, CORTEZ faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, and a $250,000.00 fine based on the charge outlined in the complaint. CORTEZ appeared before U.S. Magistrate Judge Daniel Knowles, III and was ordered remanded to the custody of the U.S. Marshal’s Service pending a detention hearing scheduled for Thursday, October 11, 2018.
This case was investigated by special agents from the U.S. Postal Service, Office of Inspector General (“USPS-OIG”). The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
Man Selling Fake Drugs Sent to Prison for Possessing Real GunsRead the Press Release
A drug user who was selling a cutting agent claiming it was methamphetamine was sentenced today to more than three years in federal prison.
Kyle Starbuck, age 32, from North Liberty, Iowa, received the prison term after a June 7, 2018, guilty plea to being a drug user in possession of a firearm. At the guilty plea, Starbuck admitted he was an unlawful user of methamphetamine and heroin when he possessed a pistol.
Information disclosed at the sentencing hearing showed that Starbuck attempted to buy a firearm in 2016 from a federally licensed firearms dealer, but was denied due to a recent conviction for an OWI. Later, in August 2016, Starbuck purchased a pistol, which had been stolen out of a vehicle the month before. He then acquired a rifle in October 2016.
In May 2017, law enforcement searched Starbuck’s residence and seized a rifle, ammunition, and loaded magazines. Starbuck was found that same day with almost 400 grams of MSM, a common cutting agent for methamphetamine, a loaded pistol, a second magazine of ammunition, and a bag with heroin residue. For the three days prior, Starbuck was selling the MSM claiming it was methamphetamine. During this time, Starbuck was a heavy user of methamphetamine and a regular user of heroin.
Starbuck was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Starbuck was sentenced to 37 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Starbuck is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Cedar Rapids Police Department, the Johnson County Drug Task Force, the North Liberty Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and prosecuted by Assistant United States Attorneys Lyndie Freeman and Emily Nydle.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 1:18-CR-00033-001.
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Louisiana Man Sentenced to Prison for his Role in Stolen Identity Refund Fraud SchemeRead the Press Release
A former resident of Tangipahoa Parish, Louisiana was sentenced today to 50 months in prison for conspiring to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.
According to court documents, Aaron Daniels conspired with others to defraud the United States by submitting false tax returns that requested fraudulent tax refunds. Daniels obtained the names and social security numbers of people he was incarcerated with in the East Carroll Detention Center and provided that information to his co-conspirators to use to file false tax returns. In exchange for providing names and social security numbers, Daniels was paid by his co-conspirators.
In addition to the term of imprisonment imposed, the court ordered Daniels to serve three years of supervised release, and pay $11,584 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Strasser commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Lauren Castaldi of the Tax Division and Assistant U.S. Attorney Hayden Brockett, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Local Assemblyman Charged with BriberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that New York State Assemblyman Joseph A. Errigo, 79, of Conesus, NY, was charged by criminal complaint with bribery concerning programs receiving federal funds, and honest services wire fraud. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, after receiving information regarding an unusually close relationship between a member of the New York State Assembly (Member A), a member other than Errigo, and a lobbyist, the FBI began investigating that relationship, to include a specific bribery scheme. The purpose of the proposed bribe was to induce Member A to introduce certain legislation.
The legislation at issue involved reducing the extent of local control over a pending development project in the Rochester area, and giving the state the ability to review the development project with the New York State Department of Transportation. The scheme initially included the person offering to pay the bribe (bribe payor), a registered New York State lobbyist (lobbyist), and Member A.
On September 4, 2017, the bribe payor and lobbyist met to discuss paying Member A money in exchange for legislation aimed at altering the proposed development project. During the conversation, the lobbyist suggested utilizing Errigo to introduce the legislation, so that the bill could not be traced to Member A. Member A, however, would assist in getting the legislation through a specific committee, according to the lobbyist.
On September 8, 2017, the bribe payor and lobbyist met once again. The bribe payor stated that he would have cash in the next week or so to give to the lobbyist and Member A. The lobbyist confirmed that he would accept the money and that the bill would be introduced within a month.On September 26, 2017, the bribe payor met the lobbyist at a public location and handed the lobbyist two envelopes, each containing $1,500. The lobbyist stated he would use the money to “grease the skids with Errigo.”
From October to December 2017, the bribe payor and lobbyist exchanged numerous text messages about arranging a meeting to pay Errigo to introduce the proposed legislation
The lobbyist scheduled a meeting between the bribe payor and Errigo on February 9, 2018, at the Assemblyman’s office in Pittsford, NY. At some point during the meeting, Errigo and the bribe payor exited the office together and walked to Errigo’s car, where the bribe payor placed an envelope on the front passenger seat. Subsequently, the lobbyist also arrived at Errigo’s office. The FBI has determined that the envelope contained $1,500 in cash. Also on February 9, 2018, the bribe payor emailed the lobbyist specific language for the proposed legislation that Errigo was going to introduce. On March 16, 2018, the bribe payor met with Errigo and provided him another payment of $2,000.
On March 27, 2018, Errigo introduced a bill consisting of the proposed legislation. Also on March 27, 2018, the bribe payor met with the lobbyist and paid him for his help in getting the legislation introduced. The FBI determined that the payment consisted of $2,000 in cash.
On April 13, 2018, the bribe payor met with Errigo and paid him $2,000 in cash for obtaining a bill number for the proposed legislation.
The bribe payor paid a total of at least $10,500 to Errigo and the lobbyist to assign a bill number to a proposed bill, and thereby introduce legislation and begin the process of obtaining passage of a State law. Errigo accepted a total of $5,500.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Marian W. Payson.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #Laurel County Man and Relatives Sentenced to 23 Years for Methamphetamine TraffickingRead the Press Release
LONDON, Ky. — Michael Shane McCormick, Sr., 52, of Corbin, Kentucky, was sentenced Tuesday to 23 years in federal prison, by United States District Gregory F. Van Tatenhove, for conspiring to distribute methamphetamine, possessing a firearm in furtherance of that drug trafficking offense, and possessing a firearm as a convicted felon. McCormick, Sr.’s sentence was enhanced because his criminal history qualified him as a career offender and armed career criminal.
A man hunt for Michael Shane McCormick, Jr. led federal investigators to the residence of his father, Michael Shane McCormick, Sr., where they found over 100 grams of methamphetamine and eight loaded firearms, located strategically around the residence that McCormick, Sr. shared with his girlfriend Robin Lawson. Further investigation revealed that McCormick, Jr. and his girlfriend, Lindsey Johnson, had been importing kilogram quantities of methamphetamine from Georgia to Kentucky, to supply other drug dealers, including Joseph Money (McCormick, Sr.’s brother) and Medgitt Koontz Wood, IV. McCormick, Sr. pled guilty to the indictment.
Others conspiring with McCormick, Sr., to obtain and distribute methamphetamine, have also recently pled guilty and been sentenced, including Michael Shane McCormick, Jr. (188 months), Joseph Money (144 months), Lindsey Johnson (108 months), Medgitt Koontz Wood, IV (92 months), and Robin Lawson (46 months). Under federal law, the defendants must serve 85 percent of their prison sentences; and upon their release, they will be under the supervision of the United States Probation Office.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge of the ATF; Chris Evans, Special Agent in Charge of the DEA; and Richard Sanders, Kentucky State Police Commissioner, jointly made the announcement. The United States was represented by Assistant United States Attorney Andrew H. Trimble.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Lafayette man sentenced for making threats to office of U.S. representative Clay HigginsRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a Lafayette man was sentenced to 30 months in prison for making threats through interstate communications to the Lafayette office of U.S. Representative Clay Higgins.
Sohail Rana, 50, of Lafayette, Louisiana, was sentenced Tuesday by U.S. District Judge Dee D. Drell, who also ordered him to serve two years of supervised release following his prison sentence. The evidence presented at the guilty plea hearing established that Rana called Higgins’ Lafayette office on July 17, 2017 while in Colorado and spoke to his district director. Rana was described as being irate, cursing and screaming during the call saying that he would end Higgins’ career and kill Higgins. The district director noted the phone number and reported the call within minutes to his chief of staff in Washington, D.C. The phone number used to call the office was traced to Rana’s cell phone, and he was later arrested in Colorado.
The U.S. Capitol Police-Threat Assessment Section, FBI, Lafayette Police Department and the Costilla County Sheriff’s Office in Colorado conducted the investigation. Assistant U.S. Attorney David J. Ayo prosecuted the case.
KC Man Indicted in $2.5 Million Tax Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been indicted for a $2.5 million tax fraud scheme that involved millions of dollars of false income he claimed for himself and his children.
Michael A. Kheop, 51, was charged in a six-count indictment returned under seal by a federal grand jury in Kansas City, Mo. That indictment was unsealed and made public today following Kheop’s arrest.
The federal indictment alleges that Kheop filed false claims for income tax refunds totaling $2,591,706 in his own and his minor children’s names from 2014 through 2018. Kheop allegedly created a fraudulent entity, Al-Aleem Engineering, in February 2013. According to the indictment, Kheop then created false W-2 forms in the name Al-Aleem, containing false income and withholding in order to fraudulently claim refunds in his own name and using his minor children’s names.
Kheop allegedly filed 12 fraudulent claims for refunds on behalf of his three minor children for tax years 2014 through 2017. Kheop allegedly filed three fraudulent claims for refunds in his own name for tax years 2015 through 2017. For example, the indictment says, Kheop claimed an income of $5 million for 2017 and filed on Jan. 29, 2018, for a refund of $1,562,579. The U.S. Treasury actually paid a total of approximately $24,322 to Kheop.
Kheop is charged with three counts of false claims, two counts of mail fraud and one count of aggravated identity theft.
The charges contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation.
Justice Department Requires CVS and Aetna to Divest Aetna’s Medicare Individual Part D Prescription Drug Plan Business to Proceed with MergerRead the Press Release
The Department of Justice announced today that it is requiring CVS Health Corporation (CVS) and Aetna Inc. (Aetna) to divest Aetna’s Medicare Part D prescription drug plan business for individuals in order to proceed with their $69 billion merger. The proposed divestiture to WellCare Health Plans, Inc. (WellCare), an experienced health insurer focused on government-sponsored health plans, including Medicare Part D individual prescription drug plans, would fully resolve the Department’s competition concerns.
“Today’s settlement resolves competition concerns posed by this transaction and preserves competition in the sale of Medicare Part D prescription drug plans for individuals,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “The divestitures required here allow for the creation of an integrated pharmacy and health benefits company that has the potential to generate benefits by improving the quality and lowering the costs of the healthcare services that American consumers can obtain.”
The Department’s Antitrust Division, along with the offices of five state attorneys general, today filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to enjoin the proposed transaction, along with a proposed settlement that, if approved by the court, would fully resolve the Department’s competitive concerns. The participating state attorneys general offices represent California, Florida, Hawaii, Mississippi, and Washington.
CVS, the nation’s largest retail pharmacy chain, and Aetna, the nation’s third-largest health-insurance company, are significant competitors in the sale of Medicare Part D prescription drug plans to individuals, together serving 6.8 million members nationwide.
According to the Department’s complaint, the combination of CVS, which markets its Medicare Part D individual prescription drug plans under the “SilverScript” brand, and Aetna would cause anticompetitive effects, including increased prices, inferior customer service, and decreased innovation in sixteen Medicare Part D regions covering twenty-two states. The complaint alleges that the loss of competition between CVS and Aetna would result in lower-quality services and increased costs for consumers, the federal government, and ultimately, taxpayers.
Under the terms of the proposed settlement, Aetna must divest its individual prescription drug plan business to WellCare and allow WellCare the opportunity to hire key employees who currently operate the business. Aetna must also assist WellCare in operating the business during the transition and in transferring the affected customers through a process regulated by the Centers for Medicare and Medicaid Services, an agency within the U.S. Department of Health and Human Services.
The settlement also includes, consistent with other settlements, several provisions designed to improve the effectiveness of the decree and the Division’s future ability to enforce it.
CVS, headquartered in Woonsocket, Rhode Island, operates the nation’s largest retail pharmacy chain, owns a large pharmacy benefit manager called Caremark, and is the nation’s second-largest provider of individual prescription drug plans, with approximately 4.8 million members. CVS earned revenues of approximately $185 billion in 2017.
Aetna, headquartered in Hartford, Connecticut, is the nation’s third-largest health-insurance company and fourth-largest individual prescription drug plan insurer, with over two million prescription drug plan members. Aetna earned revenues of approximately $60 billion in 2017.
As required by the Tunney Act, the proposed consent decree, along with the Department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Peter Mucchetti, Chief, Healthcare and Consumer Products Section, Antitrust Division, Department of Justice, 450 Fifth Street NW, Suite 4100, Washington, DC 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.