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15 November 2018
Cleveland man twice convicted of domestic violence indicted for having a gunRead the Press Release
A Cleveland man twice convicted of domestic violence was indicted for having a gun.
Joshua Hych, 24, was indicted in federal court on one count of possession of a firearm after misdemeanor crime of domestic violence.
Hych on Sept. 26 possessed a Taurus 9mm handgun, despite convictions for domestic violence in 2012 and 2015 Parma Municipal Court.
This case was investigated by the Cleveland Division of Police and Bureau of Alcohol, Tobacco, Firearms and Explosivs. It is being prosecuted by Assistant U.S. Attorney James Lewis.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Citizen of Honduras Sentenced to 29 Months in Federal Prison for Reentering the U.S. after Being DeportedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that FRANKLIN OMAR RODRIGUEZ, 37, a citizen of Honduras last residing in Norwalk, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 29 months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, in December 2005, Rodriguez was convicted in Carroll County, Georgia, of statutory rape and was sentenced to time served and three years of probation. In February 2009, he was convicted, in Carroll County, of failure to register as a sex offender and two counts of false identification documents, and was sentenced to 10 years of incarceration, execution suspended after two years. In July 2009, he was convicted in Douglas County, Georgia, for possessing drugs, driving under the influence and driving with a suspended license, and was sentenced to 18 months of incarceration. Rodriguez used aliases when he was arrested for these offenses.
In February 2011, Rodriguez was deported from the U.S. to Honduras.
Rodriguez illegally reentered the U.S. and, on January 13, 2017, was arrested by Stamford Police for the sale of illegal drugs, possession of narcotics with intent to sell, and interfering/resisting arrest.
On December 8, 2017, Rodriguez pleaded guilty in federal court to one count of reentry of a removed alien.
The state case is pending in Stamford Superior Court, where Rodriguez is scheduled to be sentenced on November 21.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chief Executive Officer and Associates Indicted for Orchestrating Multi-Million Dollar Stock Manipulation Scheme Involving a Publicly Traded CompanyRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Christian Romandetti, Sr., the Chief Executive Officer of First Choice Healthcare Solutions, Inc (FCHS), a publicly traded company based in Melbourne, Florida, and his associates Frank Sarro, Jeffrey Miller and Mark Burnett, with conducting a pump and dump scheme in coordination with Elite Stock Research (ESR), a boiler room, to defraud investors in FCHS that operated in Plainview, New York. The charges include conspiracies to commit securities fraud, wire fraud and money laundering, and substantive securities fraud.
Miller and Burnett will be arraigned this afternoon before Magistrate Judge Anne Y. Shields, at the federal courthouse in Central Islip. Romandetti’s and Sarro’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for this afternoon at the federal courthouse in Orlando, Florida.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, the defendants conducted a classic pump and dump scheme designed to defraud the investing public, many of whom were senior citizens, by pressuring them to purchase shares of the manipulated stock,” stated United States Attorney Donoghue. “Today’s arrests show our continuing commitment to protect investors and hold accountable those who abuse our financial markets in order to line their own pockets.” Mr. Donoghue expressed his grateful appreciation to the United States Securities and Exchange Commission for their significant cooperation and assistance in the investigation.
As alleged in the indictment, between May 2013 and June 2016, the defendants, together with others, engaged in a multi-million dollar scheme to defraud investors in FCHS, many of whom were elderly, by artificially controlling the price and volume of traded shares in the FCHS by artificially generating price movements and trading volume in the shares, and by including material misrepresentations and omissions in their communications with victim investors about FCHS stock. The defendants promoted the stocks primarily through cold-call campaigns and circulation of a newsletter. The defendants fraudulently concealed their control of FCHS shares by holding them in brokerage accounts in the names of other individuals or entities. The defendants then laundered over $3 million in proceeds of the foregoing stock manipulation scheme.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles N. Rose is in charge of the prosecution.
The Defendants:
CHRISTIAN ROMANDETTI, SR.
Age: 58
Indialantic, FloridaFRANK SARRO
Age: 63
Palm Bay, FloridaJEFFREY MILLER
Age: 63
Bellmore, New YorkMARK BURNETT
Age: 59
Roslyn, New YorkE.D.N.Y. Docket No. 18-CR-614 (SJF)
Chicago Man Sentenced to More Than 8 Years in Prison for Assaulting Federal Agent After Armed RobberyRead the Press Release
CHICAGO — A Chicago man who pointed a loaded gun at a federal agent after an armed robbery on the South Side has been sentenced to more than eight years in federal prison.
After an armed robbery in Chicago’s South Deering neighborhood on Dec. 19, 2017, NICHOLAS HERMON pointed a loaded handgun at an agent from the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. Hermon was later arrested.
Hermon, 24, of Chicago, pleaded guilty in August to one count of assault of a federal agent, and one count of brandishing a firearm during a crime of violence. U.S. District Judge Matthew F. Kennelly on Tuesday sentenced Hermon to eight years and three months in federal prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the ATF; and Eddie Johnson, Superintendent of the Chicago Police Department.
“The defendant’s firearm was loaded with 15 rounds of ammunition with one round in the chamber ready to be fired,” Assistant U.S. Attorney Christopher V. Parente argued in the government’s sentencing memorandum. “The defendant and his associates are incredibly fortunate that there was no loss of life in this case.”
According to evidence in the case, Hermon participated in the robbery of two individuals who sought to illegally purchase an assault rifle from Hermon and an associate, JOSHUA GENTRY. Unbeknownst to Hermon and Gentry, one of the buyers was a confidential source working at the direction of the ATF, and agents were conducting surveillance of the deal in the 10100 block of South Oglesby Avenue. After the confidential source handed Gentry $1,800 in cash, Hermon, who had been hiding out of sight, appeared and pointed the handgun at the confidential source. The source and the other buyer ran off, and ATF agents appeared, announced themselves, and commanded Hermon and Gentry to surrender. Hermon and Gentry ignored the command and fled through a nearby yard. During the pursuit, Hermon turned and pointed the handgun at the agent. Hermon was later arrested.
Officers also pursued Gentry, who at one point aimed the loaded assault rifle at one of the officers giving chase. Gentry was later taken into custody. Gentry, 22, pleaded guilty to one count of robbery of government funds, and one count of using a firearm during a crime of violence. Last week, Judge Kennelly sentenced Gentry to seven years and one day in federal prison.
Chester County Man Indicted for Production, Receipt, and Possession of Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Robert Dean Caesar, 56, of Oxford, Pennsylvania, was charged today by Indictment with production, receipt, and possession of child pornography.
The Indictment alleges that on or about each of two separate dates (September 16, 2017 and December 30, 2017), Caesar manufactured child pornography. The Indictment further alleges that Caesar received child pornography on December 20, 2017, and possessed child pornography on January 18, 2018.
If convicted as charged, the defendant faces a maximum possible sentence of 100 years’ imprisonment, a mandatory minimum term of 15 years’ imprisonment, supervised release for a minimum term of five years and a lifetime maximum term, a $1,000,000 dollar fine, mandatory restitution, and up to $20,400 in special assessments.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Pennsylvania State Police – Avondale Barracks and Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Seth Schlessinger.
Carmichael Man Indicted for Identity and Mail Theft and Illegally Possessing a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 10-count indictment today against Manuel Campos Rodriguez, 41, of Carmichael, charging him with bank fraud, aggravated identity theft, possession of credit and debit card making equipment, possession of stolen mail, unlawfully possessing 15 or more credit or debit cards, and being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, Rodriguez stole mail and obtained and stored for use credit and debit cards, credit card numbers, social security numbers, and driver’s license numbers. Rodriguez used the credit cards of one victim to make purchases at stores, such as Home Depot and Macy’s. Rodriguez also created fake driver’s licenses for victims, which had Rodriguez’s picture on them but the victim’s actual driver’s license number. When arrested, Rodriguez was found in possession of a firearm and ammunition.
This case is the product of an investigation by the U.S. Postal Inspection Service and the Folsom Police Department. Assistant U.S. Attorney Lee S. Bickley is prosecuting the case.
If convicted, Rodriguez faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as a 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. PSN was reinvigorated in 2017 as part of the Department of Justice’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.
Calhoun woman sentenced to a year in prison for theft of more than $100,000 in government fundsRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that a Calhoun woman was sentenced last week to a year in prison for stealing more than $100,000 of government money, to which she was not entitled, from her deceased mother’s account.
Megan Elliott Wilson, 43, of Calhoun, Louisiana, was sentenced on November 7, 2018 by U.S. District Judge Terry Doughty on one count of theft of government funds. She was also sentenced to three years of supervised release and ordered to pay $102,604.75 in restitution. According to the October 31, 2017 guilty plea, Anne Elliott, a U.S. Department of Veterans Affairs (VA) and Social Security Administration (SSA) program beneficiary, died in August of 2009. The government agencies were initially unaware of Elliott’s death and paid $77,942.75 in VA benefits and $24,662 in SSA benefits via direct deposit to a bank account in Elliott’s name. Upon learning of Elliott’s death, the agencies attempted to reclaim the funds, but the funds had been fraudulently withdrawn from the account by Elliott’s daughter, Megan Elliott Wilson, who accessed the funds online and forged checks on the account converting the funds to her own use. The total loss to the government is $102,604.75.
The U.S. Department of Veterans Affairs - Office of Inspector General and the Social Security Administration - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Mary J. Mudrick prosecuted the case.
Brooklyn Businessman Pleads Guilty to Defrauding Investors through Two Initial Coin OfferingsRead the Press Release
Earlier today, in federal court in Brooklyn, Maksim Zaslavskiy pleaded guilty before United States Magistrate Judge Ramon E. Reyes, Jr., to conspiracy to commit securities fraud in connection with two Initial Coin Offerings (ICOs) – REcoin Group Foundation, LLC (REcoin) and DRC World, Inc., also known as Diamond Reserve Club (Diamond).
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“The calculated lies of Zaslavskiy and others led unsuspecting investors who thought they were purchasing cryptocurrency securities to buy worthless certificates,” stated United States Attorney Donoghue. “This Office will continue to aggressively prosecute those who exploit and defraud investors, whether through traditional means of securities fraud, or new forms – such as the use of purported cryptocurrency offerings and blockchain technology.” Mr. Donoghue extended his grateful appreciation to the Securities and Exchange Commission (SEC), New York Regional Office, for their assistance in this case.
“Criminals who manipulate and defraud the public for their own personal financial gain undermine the stability and security of our investment markets,” stated FBI Assistant Director-in-Charge Sweeney. “Investing often involves risk, but nobody should be at risk of being preyed upon by unscrupulous individuals. Zaslavskiy and his associates cloaked old-fashioned criminal schemes in the language of new currency in order to take advantage of investors, and as today’s conviction demonstrates, the FBI will continue to pursue any individual who seeks to profit by exploiting others.”
As he admitted at his guilty plea and as detailed in court documents, Zaslavskiy fraudulently marketed RECoin as “The First Ever Cryptocurrency Backed by Real Estate,” and subsequently touted Diamond as an “exclusive and tokenized membership pool” hedged by diamonds. In reality, Zaslavskiy bought neither real estate nor diamonds, and the certificates he sent to investors were not backed by the promised blockchain technology. In furtherance of his scheme, Zaslavskiy falsely advertised that REcoin had a “team of lawyers, professionals, brokers and accountants” who would invest the proceeds from the REcoin ICO into real estate, that 2.8 million REcoin tokens had been sold (only about 1,000 investors paid for REcoin tokens) and that the investment in Diamond tokens was “hedged by physical diamonds.”
Earlier this year, United States District Court Judge Raymond J. Dearie denied Zaslavskiy’s motion to dismiss the indictment. Zaslavskiy asserted that the securities laws did not apply to cryptocurrency offerings and were unconstitutionally vague. The court upheld the validity of the laws, noting that “there can be no serious debate” that the indictment was sufficient. The court further held that a jury was entitled to decide if REcoin and Diamond tokens were securities. “Stripped of the 21st-century jargon,” the court wrote, referring to Zaslavskiy’s ICO marketing solicitations, the indictment described a “scam, replete with common characteristics of many financial frauds.” The court added, “simply labeling an investment opportunity as ‘virtual currency’ or ‘cryptocurrency’ does not transform an investment contract—a security—into a currency,” and does not, therefore, remove the offerings from the ambit of securities law.
When sentenced, Zaslavskiy faces up to five years’ imprisonment. In addition to the criminal charges filed by this Office, the SEC has filed civil charges against Zaslavskiy. The civil case was stayed pending resolution of the criminal matter.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Julia Nestor and Andrey Spektor are in charge of the prosecution.
The Defendant:
MAKSIM ZASLAVSKIY
Age: 39
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-647 (S-1) (RJD)
Bronx Man Charged with 2014 MurderRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced the return of a superseding indictment charging ALEXANDER MELENDEZ, a/k/a “Kiki,” with the murder of Shaquille Malcolm. MELENDEZ, who is already in federal custody on other charges, will be arraigned on the superseding indictment on December 29, 2018, before United States District Judge Lewis A. Kaplan.
U.S. Attorney Geoffrey S. Berman said: “As alleged, the defendant murdered 20-year-old Shaquille Malcolm in the Bronx in 2014. Now, thanks to the outstanding work of the FBI and NYPD, the defendant has been charged with this terrible crime. We will continue to work with our partners in law enforcement to hold violent criminals responsible for their actions.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. stated: “As demonstrated by the addition of murder charges to Melendez’s alleged crimes, the illegal drug trade often leads to additional violent criminal activity that threatens the safety and security of our communities. This individual believed himself to be above the law, and now he will face justice for his alleged crimes. The FBI and our law enforcement partners will continue to root out these violent criminals and ensure they are held accountable to the fullest extent of the law.”
According to the Superseding Indictment[1]:
In early 2014, MELENDEZ was a member of a conspiracy to distribute crack cocaine in the Allerton section of the Bronx, New York. On January 2, 2014, as part of this conspiracy, MELENDEZ and others shot Shaquille Malcolm multiple times in the stairwell of an apartment building located at 2818 Bronx Park East in the Bronx. Malcolm died at the scene.
* * *
MELENDEZ, 23, is charged with one count of conspiring to distribute 280 grams and more of crack cocaine, which carries a mandatory minimum of 10 years in prison and maximum of life in prison; one count of using, carrying, and possessing firearms during and in relation, and in furtherance of, a drug trafficking crime and aiding and abetting the same, which carries a mandatory consecutive 10 year sentence in prison and a maximum sentence of life in prison; one count of use of a firearm to commit murder in furtherance of a drug trafficking crime and aiding and abetting the same, which carries a maximum sentence of life in prison or death; and one count of murder while engaged in a conspiracy to distribute 280 grams and more of crack cocaine and aiding and abetting the same, which carries a maximum sentence of life in prison or death. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI and NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jessica K. Fender, Michael K. Krouse, and Danielle R. Sassoon 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 Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Blythewood Woman Sentenced to Federal Prison for Fraudulent Use of Husband’s VA BenefitsRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon announced today that Tammy L. Yoho, a/k/a “Tammy Louise Black,” 54, of Blythewood, South Carolina, was sentenced to over three years in federal prison for theft of government funds.
Evidence presented to the court showed that in 2002, Yoho entered an agreement with the Department of Veterans Affairs (VA) to act as the fiduciary for her husband after he was diagnosed with brain cancer. In 2011, Yoho began a relationship with another man, whom she began living with in 2013. Yoho used her husband’s VA benefits for personal expenses, including spending large amounts at a casino in Las Vegas. In 2014, she forged her husband’s name on a power of attorney form so she could obtain a VA loan to purchase a large house in Blythewood, South Carolina. In October 2015, her husband was found dead in their marital home in North Carolina. The utilities had been shut off and the residence was in foreclosure for lack of payments. Yoho—who was still living with another man in Blythewood—subsequently filed for additional VA benefits claiming to have continuously lived with her husband until he died.
United States District Judge Mary Geiger Lewis sentenced Yoho to 37 months in federal prison, to be followed by three years of court-ordered supervision and payment of $47,730.34 in restitution to the Department of Veterans affairs.
The case was investigated by agents of the Department of Veterans Affairs, Office of Investigation. Assistant United States Attorney William E. Day, II, of the Columbia office prosecuted the case.
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Berlin Man Arrested for Accepting Bribes from Inmates and Providing Contraband in PrisonRead the Press Release
CONCORD – Joseph Buenviaje, 53, of Berlin, New Hampshire, was arrested and appeared in federal court today on charges of bribery of a public official and providing contraband in prison, United States Attorney Scott W. Murray and Guido Modano, Special Agent in Charge of the U.S. Department of Justice Office of the Inspector General’s New York Field Office announced.
According to court documents, Buenviaje, while employed as a Chaplain at the Federal Correctional Institution in Berlin, New Hampshire, provided cellular telephones, tobacco, marijuana, Suboxone, and other contraband to inmates, in exchange for money. During a search of Buenviaje’s office at FCI Berlin, investigators seized Suboxone strips, tobacco, and over $5,000 in proceeds.
“Public employees are expected to act with integrity,” said U.S. Attorney Murray. “We will always be alert to instances of criminal misconduct by federal employees. In order to ensure that the public has confidence in its public servants, federal employees who violate the public trust by breaking the law will be investigated and prosecuted.”
This U.S. Department of Justice Office of the Inspector General investigated the case, with support from FCI Berlin’s Office of the Special Investigative Supervisor. The case is being prosecuted by Special Assistant U.S. Attorney Matthew T. Hunter and Assistant U.S. Attorney Anna Z. Krasinski.
A federal criminal complaint is only an allegation, and the defendant is presumed innocent unless and until proven guilty.
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Atrium Health Agrees to Settle Antitrust Lawsuit and Eliminate Anticompetitive Steering RestrictionsRead the Press Release
The Department of Justice announced today that it has reached a settlement with Atrium Health, formerly known as Carolinas HealthCare System (“Atrium”). The settlement prohibits Atrium from using anticompetitive steering restrictions in contracts between commercial health insurers and its providers in the Charlotte, North Carolina metropolitan area. If approved by the Court, today’s settlement resolves over two years of civil antitrust litigation challenging Atrium’s use of steering restrictions that prevent health insurers from promoting innovative health benefit plans and more cost-effective healthcare services to consumers.
“With healthcare costs rising, vigilant antitrust enforcement is an essential tool for protecting consumers,” said Assistant Attorney General Makan Delrahim. “By eliminating restrictions that curb comparison shopping and interfere with competition among healthcare providers, today’s resolution of our antitrust action allows consumers in the Charlotte area to benefit from competition when making critically important healthcare choices.”
In June 2016, the Department filed a civil antitrust lawsuit against Atrium challenging provisions that prohibit steering in the hospital system’s contracts with major health insurers. Steering is a method used by insurers to offer consumers options to reduce some of their healthcare expenses. As alleged in the complaint, insurers are increasingly designing health benefit plans that give patients financial incentives to choose more cost-effective hospitals and physicians. Increased consumer access to these health benefit plans invigorates competition between providers to offer lower premiums and better overall healthcare services.
The Department alleged that Atrium, the dominant hospital system in the Charlotte area, used its market power to restrict health insurers from encouraging consumers to choose healthcare providers that offer better overall value. The restrictions also constrained insurers from providing consumers and employers with information regarding the cost and quality of alternative health benefit plans.
“Competition encourages healthcare providers to reduce costs, lower prices, and increase quality,” said Assistant Attorney General Makan Delrahim. “Atrium’s steering restrictions interfered with the competitive process, resulting in fewer choices and higher costs for consumers.”
“The resolution of this antitrust enforcement action gives Charlotte-area consumers what they did not have before: the ability to receive the appropriate, high-quality treatment they need, from a healthcare provider they choose, at a fair price,” said U.S. Attorney for the Western District of North Carolina, R. Andrew Murray. “Today’s enforcement action will restore competition in the Charlotte area, resulting in lower healthcare costs and increased healthcare access for consumers and their families.”
The proposed settlement, in which the U.S. Department of Justice was joined by the North Carolina Attorney General’s Office, was filed today in the U.S. District Court for the Western District of North Carolina. The proposed settlement prevents Atrium from enforcing steering restrictions in its contracts with health insurers. It also bars Atrium from seeking contract terms or taking actions that would prohibit, prevent, or penalize steering by insurers in the future.
Atrium is North Carolina’s largest healthcare system and one of the largest not-for-profit healthcare systems in the United States. Atrium’s flagship facility is Carolinas Medical Center, the largest hospital in North Carolina. Atrium also operates eight other general acute-care hospitals in the Charlotte area and owns, manages, or has strategic affiliations with more than 40 hospitals in the Carolinas. Atrium provides healthcare services throughout the Carolinas, including in freestanding emergency departments, urgent care centers, physician practices, outpatient surgery centers, imaging centers, nursing homes, and laboratories. In 2017, Atrium’s owned, managed, and affiliated hospitals and other healthcare providers earned net operating revenue of close to $10 billion.
As required by the Tunney Act, the proposed settlement and the Department’s competitive impact statement will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Peter J. Mucchetti, Chief, Healthcare and Consumer Products Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 4100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Western District of North Carolina may enter the proposed consent decree upon finding that it serves the public interest.
Atrium Health Agrees to Settle Antitrust Lawsuit and Eliminate Anticompetitive Steering RestrictionsRead the Press Release
CHARLOTTE, N.C. – The Department of Justice announced today that it has reached a settlement with Atrium Health, formerly known as Carolinas HealthCare System (“Atrium”). The settlement prohibits Atrium from using anticompetitive steering restrictions in contracts between commercial health insurers and its providers in the Charlotte, North Carolina metropolitan area. If approved by the Court, today’s settlement resolves over two years of civil antitrust litigation challenging Atrium’s use of steering restrictions that prevent health insurers from promoting innovative health benefit plans and more cost-effective healthcare services to consumers.
“With healthcare costs rising, vigilant antitrust enforcement is an essential tool for protecting consumers,” said Assistant Attorney General Makan Delrahim. “By eliminating restrictions that curb comparison shopping and interfere with competition among healthcare providers, today’s resolution of our antitrust action allows consumers in the Charlotte area to benefit from competition when making critically important healthcare choices.”
In June 2016, the Department filed a civil antitrust lawsuit against Atrium challenging provisions that prohibit steering in the hospital system’s contracts with major health insurers. Steering is a method used by insurers to offer consumers options to reduce some of their healthcare expenses. As alleged in the complaint, insurers are increasingly designing health benefit plans that give patients financial incentives to choose more cost-effective hospitals and physicians. Increased consumer access to these health benefit plans invigorates competition between providers to offer lower premiums and better overall healthcare services.
The Department alleged that Atrium, the dominant hospital system in the Charlotte area, used its market power to restrict health insurers from encouraging consumers to choose healthcare providers that offer better overall value. The restrictions also constrained insurers from providing consumers and employers with information regarding the cost and quality of alternative health benefit plans.
“Competition encourages healthcare providers to reduce costs, lower prices, and increase quality,” said Assistant Attorney General Makan Delrahim. “Atrium’s steering restrictions interfered with the competitive process, resulting in fewer choices and higher costs for consumers.”
“The resolution of this antitrust enforcement action gives Charlotte-area consumers what they did not have before: the ability to receive the appropriate, high-quality treatment they need, from a healthcare provider they choose, at a fair price,” said U.S. Attorney for the Western District of North Carolina, Andrew Murray. “Today’s enforcement action will restore competition in the Charlotte area, resulting in lower healthcare costs and increased healthcare access for consumers and their families.”
The proposed settlement, in which the U.S. Department of Justice was joined by the North Carolina Attorney General’s Office, was filed today in the U.S. District Court for the Western District of North Carolina. The proposed settlement prevents Atrium from enforcing steering restrictions in its contracts with health insurers. It also bars Atrium from seeking contract terms or taking actions that would prohibit, prevent, or penalize steering by insurers in the future.
Atrium is North Carolina’s largest healthcare system and one of the largest not-for-profit healthcare systems in the United States. Atrium’s flagship facility is Carolinas Medical Center, the largest hospital in North Carolina. Atrium also operates eight other general acute-care hospitals in the Charlotte area and owns, manages, or has strategic affiliations with more than 40 hospitals in the Carolinas. Atrium provides healthcare services throughout the Carolinas, including in freestanding emergency departments, urgent care centers, physician practices, outpatient surgery centers, imaging centers, nursing homes, and laboratories. In 2017, Atrium’s owned, managed, and affiliated hospitals and other healthcare providers earned net operating revenue of close to $10 billion.
As required by the Tunney Act, the proposed settlement and the Department’s competitive impact statement will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Peter J. Mucchetti, Chief, Healthcare and Consumer Products Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 4100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Western District of North Carolina may enter the proposed consent decree upon finding that it serves the public interest.
Artesia Man Sentenced to 75 Months for Federal Drug Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Timothy Caleb Martinez, 28, of Artesia, N.M., was sentenced today in Las Cruces, N.M., to 75 months in prison for his conviction on methamphetamine trafficking and firearms charges. Martinez will be on supervised release for five year after completing his prison sentence.
The Bureau of Alcohol, Tobacco, Firearms and Explosives charged Martinez in a criminal complaint filed on Aug. 4, 2017, with possession of methamphetamine and possession of a firearm not registered to him in the National Firearms Registration and Transfer Record (NFRTR). According to the complaint, law enforcement officers seized approximately 48.73 grams of pure methamphetamine, a firearm and ammunition while executing a search warrant at Martinez’s residence on Nov. 18, 2014, in Eddy County, N.M.
On June 20, 2018, Martinez pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute and possession of an unregistered short-barreled shotgun. Martinez entered the guilty plea without the benefit of a plea agreement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Eddy County Sheriff’s Office, the Carlsbad Police Department, and the Pecos Valley Drug Task Force. Assistant U.S. Attorney Clara N. Cobos of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Anchorage Man Indicted on Federal Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Anchorage man has been indicted on federal drug trafficking charges, arising from the seizure of over 16 pounds of heroin in Anchorage.
Don Deviet Frye Sr., 53, of Anchorage, was named in the indictment charging him with attempted possession of a controlled substance with intent to distribute, and possession of a controlled substance with intent to distribute. Frye’s arraignment hearing has been set for Friday, Nov. 16, 2018, at 3:00 p.m.
According to the criminal complaint, a suspicious package was intercepted on Nov. 6, 2018, originating from “David Johnson” in California, to be delivered to “Robert Johnson” in Anchorage. The package weighed approximately 27 pounds and was postmarked with $168.95 in postage. A trained narcotics detector dog examined the package and subsequently indicated the presence of controlled substances. A search warrant was obtained and executed on the package, and located inside were two “Christmas-themed” cardboard boxes that contained approximately 7,638.94 grams of heroin.
On Nov. 7, 2018, law enforcement officers conducted a controlled delivery of the package to the intended address, and observed Frye receive and take the package inside the residence. Once law enforcement received indication that the package had been opened, officers converged on and secured the residence, where Frye was the sole occupant at the time. At the time of his arrest, Frye was in possession of a torn plastic baggie, a glass pipe, and a knife.
If convicted, Frye faces a mandatory minimum sentence of 10 years, and a maximum of up to life in prison, as well as a fine of up to $10 million, for the most serious charges alleged in the indictment. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The U.S. Postal Inspection Service (USPIS), the Drug Enforcement Administration (DEA), the Alaska Wildlife Trooper Aircraft Section and air asset, HELO3, and the State of Alaska Department of Corrections K-9 conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Christina M. Sherman.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
14 November 2018
Wisconsin Man Pleads Guilty to Threatening Jewish Community CenterRead the Press Release
WASHINGTON – Chadwick Grubbs, who is currently in state custody on separate cases, pleaded guilty today to federal charges related to threatening letters he wrote on three separate dates in May to the Harry and Rose Samson Family Jewish Community Center (JCC) in Whitefish Bay. Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S. Attorney Matthew D. Krueger for the Eastern District of Wisconsin, and Special Agent-in-Charge Justin Tolomeo of the FBI’s Milwaukee Division made the announcement.
Grubbs, 33, pleaded guilty to two counts of mailing threatening communications and one count of threatening to injure and destroy property by fire and an explosive. Information presented during the plea hearing established that Grubbs sent three letters to the JCC in which he threatened to use firearms to cause “maximum carnage” and threatened to use explosives to destroy the JCC. In his letters, Grubbs used numbers and symbols associated with white supremacist ideology.
“Mr. Grubbs’ violent threats against the Whitefish Bay Jewish community attempted to undermine the safety and security of all community members,” said Assistant Attorney General Eric Dreiband. “The Justice Department will continue to prosecute these cases vigorously so that all people, no matter their religious beliefs, can live their lives freely and without fear.”
“The freedom of religion is among our most cherished rights,” said U.S. Attorney Krueger. “No one should be afraid to exercise his or her religious beliefs in this country. The Department of Justice is committed to prosecuting anyone who threatens harm to someone because of their faith.”
“Protecting civil rights is one of the highest priorities of the FBI,” said SAC Justin Tolomeo. “We will vigorously investigate those who seek to intimidate with threats of violence motivated on bias against race, religion, disability, sexual orientation, ethnicity, gender, or gender identity, and bring them to justice.”
Acting Attorney General Matthew Whitaker released a statement on the FBI’s 2017 Hate Crimes Statistics report, published this morning. The Acting Attorney General’s full statement reflects on the troubling increase in anti-Semitic religious hate crimes in 2017, outlined in the report.
Last month, the Justice Department launched a new comprehensive hate crimes website designed to provide a centralized portal for the Department’s hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other related organizations and individuals. More information on the website and an update on Justice Department hate crimes prosecutions can be found here.
Grubbs faces a maximum statutory penalty of ten years in prison and a $250,000 fine for the explosives threat charge and a penalty of five years in prison and a $250,000 fine for each of the mailed threats charges.
The FBI is leading the investigation. Assistant United States Attorney Gregory Haanstad of the U.S. Attorney’s Office for the Eastern District of Wisconsin and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division are prosecuting this case.
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Wetzel County man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Joseph Harrison, of Pine Grove, West Virginia, was sentenced today to 15 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Harrison, age 48, pled guilty to one count of “Felon in Possession of a Firearm and Ammunition” in August 2018. Harrison, having previously been convicted of a felony, is accused of having a .22 caliber revolver, and rounds of ammunition for the firearm in October 2017 in Wetzel County.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Office of the Attorney General has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Attorney General’s Office announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wetzel County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
West Virginia Man Indicted on Charges of Conspiring to Distribute and Possess with Intent to Distribute Large Amounts of Meth and CocaineRead the Press Release
PITTSBURGH, Pa. - A West Virginia man has been indicted by a federal grand jury in Pittsburgh, after having first been charged by complaint, on charges of conspiracy to distribute and possession with intent to distribute large quantities of methamphetamine and cocaine, United States Attorney Scott W. Brady announced today.
The two-count indictment, returned on November 13, named Durell Anthony Jones, 33, of Fairmont, West Virginia, as the sole defendant.
According to the criminal complaint presented to the court, at 5:30 a.m. on October 21, 2018, Jones was observed by law enforcement officers parking near a tractor trailer with California tags in the back of a gas station in Portersville, Pennsylvania. After opening his trunk and making movements to the rear of his vehicle, he drove a Kia Sedan onto Interstate 79, southbound. A trooper from the Pennsylvania State Police stopped the Kia for a violation of the Pennsylvania motor vehicle laws as it was traveling South on Interstate 79. Jones provided his name and date of birth, and State Police were able to determine that Jones had an active warrant in Michigan.
According to the complaint, a search of the Kia revealed approximately 55.5 kilograms (122 pounds) of methamphetamine and approximately 4.58 kilograms (10 pounds) of cocaine. The meth and cocaine were located in the trunk of the vehicle in four separate duffle-type bags.
The law provides for a maximum total sentence of not more than 25 years in prison, a fine of not more than $25,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Troy Rivetti and Jeffrey R. Bengel are prosecuting this case on behalf of the government.
U.S. Attorney Brady commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation that led to the indictment of Jones.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
West Memphis Men Sent to Prison for More Than a Decade for Illegal Gun and Drug PossessionRead the Press Release
LITTLE ROCK—Two West Memphis men recently convicted of gun and drug crimes have each sentenced to more than a decade in federal prison. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and William McCrary, Assistant Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), New Orleans Field Division, announced today that Jeremy Briscoe, 36, and Carlton Daniels, Jr., 42, both of West Memphis, have been sentenced to 151 and 180 months, respectively, after searches revealed guns and drugs in their homes.
A federal Grand Jury charged Briscoe with being a felon in possession of a firearm, using a firearm in furtherance of a drug trafficking crime, and drug trafficking charges. On August 20, 2018, Briscoe pleaded guilty to possession with intent to distribute cocaine, with an enhanced penalty for also illegally possessing a firearm. On Wednesday, United States District Court Judge Susan Webber Wright sentenced Briscoe to 151 months (12.5 years) in federal prison, to be followed by three years of supervised release. There is no parole in the federal system.
Similarly, Daniels was charged with being a felon in possession of a firearm, as well as other drug and gun charges. On June 21, 2018, Daniels pleaded guilty to being a felon in possession of a firearm, and because of his multiple prior felony convictions, faced a mandatory 15 years in prison. United States District Court Chief Judge Brian S. Miller sentenced Daniels to 180 months, to be followed by three years of supervised release, on October 15, 2018.
"Drug crimes and convicted criminals who illegally possess guns are a plague on all communities, but especially in tight knit communities like West Memphis," Hiland said. "These significant sentences should continue to send the message that we will seek to punish to the fullest extent of the law convicted criminals who illegally possess guns and drugs. And, in communities like West Memphis, we will continue to work with our local law enforcement partners in our efforts to hold these criminals accountable."
As stated during Briscoe’s change of plea hearing, on May 2, 2016, the West Memphis Police Department executed a search warrant at Briscoe’s residence after previously buying crack cocaine at the house. Inside the home officers found a loaded shotgun, two sets of digital scales with powdery residue on them, and crack cocaine.
Daniels’s case also began as a West Memphis Police Department investigation. On September 21, 2016, officers conducted a search of Daniels’s residence after a report that Daniels had threatened someone with a firearm. During the search, officers found a Smith and Wesson .40-caliber handgun and a Ruger 9mm handgun, as well as cocaine.
"These convictions and sentences are an example of the ATF’s commitment to working with our law enforcement partners in identifying and apprehending the violent criminals that prey upon the vulnerable and who threaten the safety of our communities," ASAC McCrary said. "The ATF and our partners will continue to aggressively investigate and prosecute those who victimize our neighbors, and undermine the safety and security of our neighborhoods."
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The investigations were conducted by the West Memphis Police Department and the ATF. The cases were prosecuted by Assistant United States Attorneys Stacy Williams and Michael Gordon.
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
Twitter:
@EDARNEWS
VWR International, LLC Agrees to Settlement of Federal Civil MatterRead the Press Release
HARRISBURG, The United States Attorney’s Office for the Middle District of Pennsylvania announced that VWR International, LLC, a global laboratory supplier and distributor of chemicals, has agreed to pay the United States $430,194.25 to settle allegations from a self-disclosure by VWR to the Department of Navy.
According to the voluntary disclosure and the investigation that followed, from October 1, 2011, through March 16, 2015, VWR, which acquired VWR Chemicals, LLC, formerly Anachemia chemicals, LLC, allegedly failed to disclose that Anachemia was no longer a small business in contracts awarded and paid by the Naval Supply Weapons Systems Support (NSWSS), Mechanicsburg, Pennsylvania. VWR has since taken corrective action. This settlement resolves the matter without the filing of litigation.
This case was investigated by the United States Attorney’s Office for the Middle District of Pennsylvania and the United States Naval Criminal Investigative Service of the NSWSS. This matter was handled by Assistant United States Attorney Melissa Swauger for the United States Attorney’s Office.
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Union County, New Jersey, Woman Admits Role in $2 Million Debt Payoff SchemeRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, woman today admitted making and using phony money orders, cashier’s checks, receipts and other fabricated documents to fraudulently discharge $2 million in mortgages, student loans, and other financial obligations, U.S. Attorney Craig Carpenito announced.
Melissa Reynolds, 43, of Elizabeth, New Jersey, pleaded guilty before U.S. District Judge William H. Walls to an information charging her with conspiracy to commit mail fraud, mail fraud affecting financial institutions, and bank fraud.
According to documents filed in this case and statements made in court:
Beginning in early 2014, Reynolds and Germaine H. King, 41, of Elizabeth, began making fraudulent money orders, cashier’s checks, and other fictitious documents on their home computer. They began mailing these phony money orders to financial institutions and other lenders in their attempt to fraudulently discharge their lawful debts. Reynolds discharged and attempted to discharge more than $2 million in lawful debts.
For example, in May 2014, Reynolds and King mailed fraudulent money orders for $22,260 and $39,585 to a credit union in an effort to fraudulently pay off their Mercedes-Benz cars. They also made and mailed a fraudulent money order for $432,000 to a financial institution as a complete payoff of the mortgage on Reynolds’ home in Elizabeth. The financial institution erroneously accepted the fraudulent payment and credited it as a payoff for her mortgage. Later, a state court reinstated the mortgage.
Reynolds and others unsuccessfully used the same scheme to seek the discharge of other mortgages, including Reynolds’ second residence in Newark, the residence of a conspirator in Hillside, New Jersey, the residence of an individual in West Orange, New Jersey, and the residence of an individual in Bowie, Maryland. Certain of these mortgages were Federal Housing Administration mortgages backed by the U.S. Department of Housing and Urban Development, including the mortgage on Reynolds’ Newark residence. Reynolds and her conspirators mailed fraudulent money orders to HUD or companies acting on behalf of HUD. These payments were rejected.
Reynolds also sought to fraudulently discharge more than $52,000 in student loans with fraudulent money orders and cashier’s checks. On March 20, 2017, Reynolds sent a fraudulent cashier’s check in the amount $67,000 to the Department of Education’s processing company. These payments were rejected.Beginning in early 2017, Reynolds, King, and Daniel K. Dxrams, a/k/a “Daniel Kusi,” a/k/a “Danny D. Dxrams,” a/k/a “Randy N. Amoateng,” 40, of Maplewood, New Jersey, conspired to fraudulently pay off Dxrams’ auto leases on a 2012 Bentley, 2016 Rolls Royce Coupe, 2015 Mercedes-Benz, 2016 Mercedes-Benz, and Dxrams’ family member’s 2015 Mercedes-Benz. Reynolds sent a bogus $101,000 cashier’s check to a finance company that enabled Dxrams to obtain title to the Bentley, which Dxrams sold to a third party for approximately $85,000 and then issued a genuine cashier’s check to King for approximately $25,000. Reynolds, King, and Dxrams used this scheme to fraudulently pay off the other luxury cars.
The mail fraud and bank fraud conspiracy to which Reynolds pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Feb. 19, 2019.
On Nov. 9, 2018, a federal grand jury sitting in Newark returned a second superseding indictment against King and Dxrams. This indictment charged King with conspiracy to commit mail and bank fraud conspiracy and bank fraud charges. It also charged King and Dxrams with conspiracy to commit mail fraud related to the luxury car scheme and substantive mail fraud counts. The indictment charged Dxrams with bankruptcy fraud and making a false oath in a bankruptcy proceeding.
U.S. Attorney Carpenito credited special agents of the FBI and the Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the N.J. Office of Homeland Security and Preparedness, under the direction of Director Jared Maples; the U.S. Department of Education, Office of Inspector General, under the direction of Special Agent in Charge Geoffrey Wood; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The charges and allegations in the second superseding Indictment and previously filed complaint are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Anthony Moscato, Chief of the U.S. Attorney’s National Security Unit, and Assistant U.S. Attorney Lakshmi Srinivasan Herman, of the National Security Unit, in Newark.
Defense counsel:
Reynolds: Robert J. Degroot Esq., and Oleg Nekritin Esq., Newark
Two from Lorain indicted for selling fentanylRead the Press Release
Two men from Lorain were indicted for selling fentanyl.
Julius Ruffin, 39, was indicted on one count of possession with intent to distribute a mixture of heroin and fentanyl. Ruffin had nearly 100 grams of the drug mixture on Oct. 19, according to the indictment.
Aalijah Joel Rico, 24, was indicted on one count of possession with intent to distribute fentanyl. Rice had 117 grams of fentanyl on Oct. 12, according to the indictment.
The cases were investigated as part of Operation Synthetic Opioid Surge (S.O.S.), which seeks to reduce the supply of deadly synthetic opioids in high impact areas and to identify wholesale distribution networks and international and domestic suppliers. Lorain County was selected as a pilot site for Operation S.O.S. Nearly 40 people have been indicted as part of the program to date.
These cases are investigated by the DEA, FBI, Elyria Police Department, Lorain Police Department and Lorain County Prosecutor’s Office. These cases are being prosecuted by Assistant U.S. Attorney Vasile Katsaros.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Convicted Felons Charged with Possessing FirearmsRead the Press Release
NEWPORT NEWS, Va. – A federal grand jury returned an indictment today charging two Hampton Roads men with being a felon in possession of a firearm.
“Convicted felons who possess firearms present a significant danger to the safety of our law enforcement partners and the communities they serve,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue to aggressively pursue those who have forfeited their Second Amendment rights due to felony conviction. Together with our federal, state, and local law enforcement partners we are committed to removing illegally possessed firearms from our streets.”
According to allegations in the first indictment, Mark E. Monroe, 48, of Newport News, came into contact with Newport New Police as an occupant of a vehicle parked in an apartment complex. When officers approached the vehicle, Monroe rolled the window down and officers immediately noticed a firearm on the seat under Monroe’s leg. Monroe was previously convicted of possession with intent to distribute cocaine, and was prohibited from possessing a firearm.
According to allegations in the second indictment, Sequia Kerr, 43, of Yorktown, came into contact with Newport News Police after two men reported that Kerr brandished a firearm and ran toward them. Officers recovered a firearm hidden in a trashcan at the scene, and Kerr admitted that he put the firearm in the trashcan when he learned that officers were coming.
Each man is charged with being a felon in possession of a firearm, and if convicted each faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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. The Department reinvigorated PSN in 2017 as part of a 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Steve R. Drew, Chief of Newport News Police, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement. Assistant U.S. Attorneys Bob Bradenham and Megan M. Cowles are prosecuting the cases.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Twin Falls Man Sentenced to over 13 Years in Federal Prison for Gun and Drug CrimesRead the Press Release
BOISE – Fred Zapata Paiz, 29, of Twin Falls, was sentenced last Thursday in U.S. District Court to 162 months in federal prison for the possession of methamphetamine with the intent to distribute and a concurrent sentence of 120 months in prison for unlawfully possessing firearms, U.S. Attorney Bart M. Davis announced. Paiz was sentenced by Senior U.S. District Court Judge Edward J. Lodge. A federal grand jury indicted Paiz on November 15, 2017.
According to court records, in July 2017, police were dispatched to a vehicle accident involving injuries in Twin Falls. When police arrived, they found Paiz in one of the vehicles. Police found over eight ounces of methamphetamine nearby. Inside the vehicle, police found a loaded .40 caliber pistol, $670, and a digital scale. Paiz was prohibited from possessing firearms because of a prior felony conviction for possession of controlled substances.
Later, in October 2017, police officers in Gooding, Idaho, found Paiz in a vehicle. Paiz was arrested on an outstanding warrant for his arrest. During a search of the vehicle, police officers found over six ounces of methamphetamine, a loaded 9mm pistol, and $2,200.
This case was investigated by the Twin Falls County Sheriff’s Office, Twin Falls Police Department, Gooding Police Department, Gooding County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted in coordination with the Twin Falls County Prosecuting Attorney’s Office, Grant Loebs, Prosecutor.
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. The Department of Justice reinvigorated PSN in 2017 and directed 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.
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Topeka Man Charged with Eight Store RobberiesRead the Press Release
TOPEKA, KAN. – A Topeka man was indicted Wednesday on charges of eight robberies at area businesses, U.S. Attorney Stephen McAllister said.
Joseph Bryant Toole, III, 35, Topeka, Kan., is charged with the following robberies:
- Nov. 2, 2018: Lynn’s Liquor Store, 3335 Southwest Gage Boulevard, Topeka, Kan.
- Sept. 20, 2018: Lynn’s Liquor Store.
- July 16, 2018, Lynn’s Liquor Store
- March 25, 2018, Sonic Drive-In Restaurant, 1015 E. 23rd, Lawrence, Kan.
- July 17, 2018: Kwik Shop, 746 Northeast Wabash Avenue, Topeka.
- Sept. 13, 2018: Mexican Taco Shop, 3703 Southwest Burlingame Road, Topeka.
- Sept. 20, 2018: Gas Trip, 550 Southwest Croco Road, Topeka.
- Sept. 30, 2018: Super Store, 4301 Southwest 21st Street, Topeka.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on each count. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER INDICTMENTS
Damario Deante Brooks, 36, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Sept. 18, 2018, in Topeka. Brooks was sentenced to 30 months on federal drug charges in 2016.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
This case is being prosecuted under the Justice Department’s Project Safe Neighborhoods initiative.
William F. Bivens, III, Topeka, Kan., is charged in a superseding indictment with two counts of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred Jan. 18, 2018, and Oct. 12, 2018, in Topeka.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000 on each count.
This case is being prosecuted under the Justice Department’s Project Safe Neighborhoods initiative.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Three-Time Felon Sentenced to over Eight Years in Federal Prison for Illegally Possessing FirearmRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Alonzo Dean Jenkins, 31, of Anchorage, was sentenced today by Chief U.S. District Judge Timothy M. Burgess, to serve 100 months in prison, followed by three years of supervised release, for illegally possessing a firearm as a convicted felon. A jury previously found Jenkins guilty of the charge in June 2018, after a three-day trial.
According to evidence presented at trial, on Jan. 26, 2017, an APD officer stopped a 2007 BMW for a traffic violation. The officer recognized Jenkins from prior encounters and subsequently requested back-up. Once a second officer was dispatched to the scene, Jenkins was asked to step out of the vehicle for a pat search. Officers observed that Jenkins had an odor of alcohol on his breath along with, in plain view, a gallon sized bottle of whisky in the vehicle. As Jenkins was standing outside the vehicle, the second officer observed a pistol underneath the driver’s seat. Jenkins was arrested and the vehicle was towed from the scene. A blood sample obtained from Jenkins later tested positive for methamphetamine, and a subsequent search of the vehicle revealed a Taurus 9mm pistol, with an obliterated serial number, loaded with seven rounds of ammunition.
Jenkins has three prior felony convictions with the State of Alaska, and was therefore prohibited from possessing a firearm. Jenkins also has a long criminal history of violent, firearm, and drug related offenses.
The Anchorage Police Department (APD), the Federal Bureau of Investigation (FBI), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Special Assistant U.S. Attorney James E. Stinson.
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.
Three South Korean Companies Agree to Plead Guilty and to Enter into Civil Settlements for Rigging Bids on United States Department of Defense Fuel Supply ContractsRead the Press Release
South Korea-based companies SK Energy Co. Ltd., GS Caltex Corporation, and Hanjin Transportation Co. Ltd. have agreed to plead guilty to criminal charges and pay a total of approximately $82 million in criminal fines for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to United States Army, Navy, Marine Corps, and Air Force bases in South Korea, the Department of Justice announced today.
“These charges are the first to be announced in this investigation into bid rigging and price fixing of fuel supply services to the Department of Defense in this critical region,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Section 4A of the Clayton Act is a powerful yet historically underused enforcement tool that empowers the United States to obtain treble damages for anticompetitive conduct when the government is itself the victim. The Antitrust Division has a long history of vigilantly protecting the interests of American consumers through civil and criminal antitrust enforcement. Going forward, it is my goal to apply that same vigilance to protect the interests of American taxpayers. When a firm cheats the United States by rigging bids, the Division will insist on robust civil settlements like those announced today.”
“Those who subvert the open-bidding process to supply services to the United States by conspiring to fix prices will be found out and prosecuted,” said U.S. Attorney of the Southern District of Ohio Benjamin C. Glassman. “Such a conspiracy is no less illegal for being hatched in South Korea, and as this case shows, federal law enforcement authorities can bridge the distance.”
In separate civil resolutions, SK Energy, GS Caltex, and Hanjin have agreed to pay a total of approximately $154 million to the United States for civil antitrust and False Claims Act violations related to the bid-rigging conspiracy. These settlements reflect the important role of both Section 4A of the Clayton Act and the False Claims Act to ensure that the United States is fully compensated when it is the victim of anticompetitive conduct.
“We depend on companies like SK Energy, GS Caltex, and Hanjin to provide valuable services to our military,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “We will continue to ensure that fuel suppliers who contract with the federal government do not engage in corrupt practices at the expense of our nation’s military and the American taxpayer.”
The Criminal Case:
According to three felony charges filed today in the U.S. District Court for the Southern District of Ohio in Columbus, the Defense Logistics Agency and the Army and Air Force Exchange Service are two U.S. Defense Department agencies that contract with South Korean companies to supply fuel to the numerous U.S. military bases throughout South Korea. Beginning at least in or around March 2005 and continuing into 2016, South Korean petroleum and refinery companies and their agents, including the defendants and their co-conspirators, participated in a combination and conspiracy to suppress and eliminate competition during the bidding process for these fuel supply contracts. SK Energy, GS Caltex, and Hanjin have agreed to cooperate with the department’s ongoing criminal investigation. The plea agreements are subject to court approval.
“Protecting the integrity of the Department of Defense acquisition process and delivery of fair-priced resources to the U.S. military are among our highest priorities,” said Director Dermot F. O’Reilly of the Department of Defense, Defense Criminal Investigative Service (DCIS). “These guilty pleas and significant fines demonstrate the heavy consequences that come to those who enrich themselves through collusion in order to defraud the American taxpayer. This exhaustive investigation was a multi-year endeavor by DCIS, its investigative partners, and the Department of Justice. DCIS will continue to identify, disrupt, and bring to justice those who threaten U.S. military readiness through fraud and corruption.”
“These guilty pleas clearly demonstrate our organization’s steadfast commitment to hold corporations, foreign and domestic, accountable for engaging in anticompetitive conduct,” said Brigadier General Duane R. Miller, deputy commander of the U.S. Army Criminal Investigation Command (Army CID). “The highly trained special agents from our Major Procurement Fraud Unit, along with our federal law enforcement partners, will continue to aggressively investigate organizations that participate in illegal conspiracies and do harm to the readiness of our Army.”
“The FBI remains committed to holding corporations—both foreign and domestic—accountable for anticompetitive conduct and fraudulent practices toward the United States,” said FBI Executive Assistant Director Amy Hess. “The conduct by the corporations in this case is particularly egregious, as they targeted the U.S. military in a critically strategic region, defrauded the U.S. government, and ultimately, cheated the American taxpayers of millions of dollars.”
“The FBI is committed to investigating companies and individuals around the world who engage in bid rigging and other forms of corruption to defraud the U.S. Government,” said Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Field Office. “True competition is an economic bedrock of our democratic society. These criminal and civil charges demonstrate the ability of the FBI, our federal law enforcement partners, and the Department of Justice to bring to justice those who choose not to follow the rule of law, and to ensure they are not enriched by their illegal conduct.”
A criminal violation of Section 1 of the Sherman Act carries a maximum fine of $100 million for corporations. The maximum fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charges are the result of an ongoing federal investigation into bid rigging, price fixing and other anticompetitive conduct targeting U.S. Department of Defense fuel supply contracts in South Korea. The criminal case is being prosecuted by the Antitrust Division’s Washington Criminal I Section and the United States Attorney’s Office of the Southern District of Ohio in conjunction with the DCIS, the Federal Bureau of Investigation, the Army CID, the Defense Logistics Agency Office of the Inspector General, and the Air Force Office of Special Investigations. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
The Civil Case:
The Department’s Antitrust Division today filed a civil antitrust complaint in the U.S. District Court for the Southern District of Ohio, and at the same time filed proposed settlements that, if approved by the court, would resolve the lawsuit against SK Energy, GS Caltex, and Hanjin for their anticompetitive conduct targeting the U.S. military in South Korea.
As a result of this conduct, the United States Department of Defense paid substantially more for fuel supply services in South Korea than it would have had SK Energy, GS Caltex, and Hanjin competed for the fuel supply contracts. Under Section 4A of the Clayton Act, the United States may obtain treble damages when it has been injured by an antitrust violation. The proposed settlement provides that SK Energy pay $90,384,872, GS Caltex pay $57,500,000, and Hanjin pay $6,182,000 to the United States to resolve the civil antitrust violations. In addition to the payments, SK Energy, GS Caltex, and Hanjin have agreed to cooperate with the ongoing civil investigation of the conduct and to abide by antitrust compliance program requirements. The amount paid by each defendant exceeds the amount of the individual overcharge and reflects the value of defendants’ cooperation commitments and the cost savings realized by avoiding extended litigation.
The payments will also resolve civil claims that the United States has under the False Claims Act against SK Energy, GS Caltex, and Hanjin for making false statements to the government in connection with their agreement not to compete. The Civil Division has entered into separate settlement agreements with the companies to resolve these claims.
Except where based on admissions by defendants in the criminal pleas, the claims resolved by the civil agreements are allegations only.
The civil settlements were handled by the Antitrust Division’s Transportation, Energy, and Agriculture Section, by the Civil Division’s Fraud Section, and by the United States Attorney’s Office in the Southern District of Ohio.
The United States’ False Claims Act civil investigation resulted from a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act. Those provisions allow for private parties to sue on behalf of the United States and to share in any recovery.
The proposed civil antitrust settlement, along with the department’s competitive impact statement, will be published in The Federal Register, as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Kathleen O’Neill, Chief, Transportation, Energy, and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the civil antitrust settlement upon a finding that it serves the public interest.
Three New Jersey Men Plead Guilty to the Illegal Production and Distribution of PesticidesRead the Press Release
Three individuals who operated Flexabar Corporation, a paint and coating manufacturer in Lakewood, New Jersey, pleaded guilty yesterday in federal court to the illegal production and distribution of pesticides. Assistant Attorney General Jeffrey Bossert Clark and EPA Office of Enforcement and Compliance Assurance Assistant Administrator Susan Bodine made the announcement.
Andrew Guglielmo, Flexabar’s Chief Executive and Financial Officer; Richard Guglielmo Jr., Flexabar’s President; and Hamdi Latif, the company’s Technical Director, pleaded guilty yesterday in federal district court in Trenton, New Jersey, to felony charges of having conspired to violate federal pesticide laws and to evade EPA’s ban on the use of the marine toxin tributyltin (TBT).
“Tributylin, or TBT, is dangerous to marine life, which is why Congress limited its use in 1988. Despite this danger, and repeated notices by EPA, the defendants chose to illegally produce and distribute TBT,” said Assistant Attorney General Clark. “Yesterday’s guilty pleas shows that the Department of Justice will not tolerate such unlawful conduct.”
“The defendants in this case produced and marketed a paint that contained a biocide that can cause significant harm to marine life. When questioned about the intended use of the paint, the defendants repeatedly misled EPA investigators,” said EPA Office of Enforcement and Compliance Assurance Assistant Administrator Susan Bodine. “Yesterday’s guilty pleas demonstrate that companies and their top executives who conspire to skirt federal pesticide control laws and place our natural resources at risk will be prosecuted.”
During the 1970s, TBT was used on boats, docks, crab pots, and other fishing gear in antifouling paint that prevent the growth of barnacles, seaweed, and mollusks. By the 1980s, scientific studies showed TBT to be extremely toxic to marine life, causing shell deformation, reproductive aberrations, endocrine disruption, and bio-accumulation in predator species including marine mammals. In the early 1990s, EPA began to limit the use of TBT to reduce its impact on marine life. In 1991, EPA directed Flexabar to clarify the language on its registered TBT labels to assure that the product was not used as an antifouling treatment on surfaces in contact with water.
In spite of repeated notices from EPA, the defendants evaded restrictions on their company’s TBT pesticides and continued to produce and sell TBT antifouling paints to the fishing industry. They manufactured and sold TBT for marine uses after such applications were restricted by an act of Congress in 1988, by EPA’s labeling requirements in 1991, by an international treaty in 2001, by EPA’s TBT product cancellation in 2005, and by EPA’s subsequent notices. Even after February 2013, when EPA banned the sale of Flexabar’s TBT pesticides for any application, the defendants continued to surreptitiously purchase TBT, to manufacture more TBT antifouling paint, and to illegally sell it for use as a marine pesticide.
Each defendant is subject to a maximum of up to five years imprisonment and a fine of up to $250,000, or twice the financial gain they derived from the offense.
Sentencing for Richard Guglielmo Jr. is scheduled for February 25, 2018; sentencing for Andrew Guglielmo is scheduled for February 26, 2018; and sentencing for Hamdi Latif is scheduled for February 27, 2018.
This case was investigated by Resident Agent in Charge Nicole Bein of the EPA’s Criminal Investigation Division. It is being prosecuted by Trial Attorneys Jeremy Korzenik and Adam Cullman of the Environmental Crimes Section of the United States Department of Justice.
Teacher Sentenced to 21 Years in Prison for Molesting Kindergarten StudentsRead the Press Release
PHOENIX – Yesterday, Tadashi Mitchell Harvey, 30, of Gilbert, Ariz., was sentenced by U.S. District Judge David G. Campbell to 21 years in prison followed by lifetime supervised release for molesting two six-year-olds in the Gila River Indian Community. Harvey had previously pleaded guilty to two counts of abusive sexual contact of a minor. Upon release from prison, Harvey will be required to register as a sex offender.
Harvey’s crimes came to light earlier this year, when a kindergarten student disclosed the molestation. The investigation ultimately identified a total of six alleged victims, all of whom were current or former students of Harvey. Harvey admitted to sexually touching two minor victims, both of whom were members of the Gila River Indian Community. At the time of the crimes, Harvey was an enrolled member of the White Mountain Apache Tribe.
“Our society places immense trust in teachers, and yesterday’s 21-year sentence appropriately punishes Harvey’s breach of that trust,” said First Assistant U.S. Attorney Elizabeth A. Strange. “Protecting school children from predators is one of the U.S. Attorney’s Office’s most important responsibilities, and we will continue to prosecute such crimes to the fullest extent of the law.”
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christine D. Keller and Dimitra H. Sampson, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-18-00594-PHX-DGC
RELEASE NUMBER: 2018-154_Harvey
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Swiftwater Man Charged with Tax EvasionRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that James Famularo, age 61, of Swiftwater, Pennsylvania, was charged in a criminal information with tax evasion.
According to United States Attorney David J. Freed, the information alleges that Famularo failed to report a total of $646,663.40 in income between tax years 2012 ($197,611.60), 2013 ($153,745.10), 2014 ($145,510.20), and 2015 ($149,796.50). Famularo, who was then a resident of Pocono Summit, Pennsylvania, allegedly filed false Form 1040 Individual Income Tax Returns for each of those tax years.
The case was investigated by the Internal Revenue Service’s Criminal Investigations Division. The case is being prosecuted by Assistant U.S. Attorney Phillip J. Caraballo.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Suffolk Man Sentenced to Prison for Child PornographyRead the Press Release
NORFOLK, Va. – A Suffolk man was sentenced today to 12 years in prison and 20 years of supervised release for receiving images of minors engaging in sexually explicit conduct.
According to court documents, Christopher Howerton, 33, was identified by both the Virginia Beach Police Department and Southern Virginia Internet Crimes Against Children Task Force as having distributed images of minors engaging in sexually explicit conduct (SEC) from 2016 through 2017 via peer-to-peer file-sharing software. In December 2017, a federal search warrant was conducted at his residence in Suffolk. A forensic analysis of Howerton’s electronic media seized during the search warrant revealed numerous images and videos of minors engaging in SEC.
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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-51.
Stockton Tax Preparer Convicted on Eight Counts of Tax FraudRead the Press Release
SACRAMENTO, Calif. — After a six-day trial, a federal jury found Paola Bedoy, 64, of Stockton, guilty today of all eight counts of preparing fraudulent tax returns, U.S. Attorney McGregor W. Scott announced. The trial was held before U.S. District Judge Kimberly J. Mueller.
According to evidence presented at trial, for years Bedoy ran a tax preparation business in Stockton called Javez Enterprises, and she assisted numerous taxpayers in preparing fraudulent federal income tax returns by claiming thousands of dollars in earned income credits and child tax credits based upon ineligible dependents. Among other things, Bedoy listed a child as disabled when he was not, added dependents to returns that clients did not know, and repeatedly sought tax credits based on non-citizen children living in Mexico who she knew did not qualify for those tax credits, all to inflate tax refunds.
Evidence at trial revealed that Bedoy often directed her clients’ refund checks to her home and to a post office box in Stockton, and on multiple occasions, she stole portions of her clients’ refunds for her own personal benefit. The evidence also revealed that Bedoy would inflate her clients’ tax refunds so that they could pay her tax preparation fees, which she would sometimes increase in exchange preparing a fraudulent return.
This case is the product of an investigation by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Christopher S. Hales and Matthew M. Yelovich are prosecuting the case.
Bedoy is scheduled to be sentenced by Judge Mueller on February 11, 2019. Bedoy faces a maximum statutory penalty of three years in prison and a $100,000 fine for each count of conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Statement of U.S. Attorney on the Court’s Denial of the Motion to Approve the Proposed NYCHA Consent DecreeRead the Press Release
Manhattan U.S. Attorney Geoffrey S. Berman said: “We are reviewing the decision of the Court and will respond within the time frame set forth by Judge Pauley. The well-being of the over 400,000 NYCHA residents continues to be our paramount concern.”
Springfield Man Sentenced to 38 Years for $1 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Springfield, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute more than $1 million worth of methamphetamine in southern Missouri and in the Kansas City, Mo., area.
Michael Ryan Nevatt, 29, was sentenced by U.S. Chief District Judge Greg Kays to 38 years and four months in federal prison without parole.
On April 6, 2018, Nevatt was found guilty at trial of all seven counts contained in a Nov. 17, 2016, federal indictment. Nevatt was convicted of conspiracy to distribute methamphetamine, conspiracy to possess firearms in furtherance of drug trafficking, possessing firearms in furtherance of drug trafficking, conspiracy to commit money laundering, and three counts of money laundering.
Evidence introduced during the trial indicated that Nevatt participated in a conspiracy to distribute methamphetamine from Jan. 1, 2014, to Nov. 17, 2016. Co-defendant Kenneth Lake, 57, of Strafford, Mo., was the original head of the organization, coordinating vehicle transport shipments of methamphetamine from a Mexican cartel source in Texas to Springfield. Conspirators in Springfield divided the methamphetamine for distribution to the Lebanon, Mo., and Kansas City, Mo., areas. Lake pleaded guilty to his role in the drug-trafficking conspiracy and was sentenced on May 1, 2018, to 12 years and six months in federal prison without parole.
Nevatt subsequently became the head of the organization. Nevatt and other conspirators made regular trips, and sometimes travelled several times a week, to pick up multiple-pound supplies of methamphetamine. For example, Nevatt traveled to Texas regularly to pick up 10 pounds of methamphetamine and bring it back to Springfield. Nevatt would later return to Texas with approximately $100,000 in cash to pay for it. On one occasion, Nevatt met sources in Dallas, Texas, to purchase 40 pounds of methamphetamine. Mexican sources also delivered multiple-pound shipments of methamphetamine by truck or car to Springfield. Nevatt was found responsible for over 200 pounds of methamphetamine.
Nevatt was stopped by Springfield police officers on one occasion while operating a motorcycle without a valid motorcycle endorsement or insurance. Officers seized $66,960 in the saddle bag of the motorcycle. On another occasion, Springfield police officers seized $97,390 from a hotel room rented in Nevatt’s name, which was occupied by his girlfriend and Lake. Oklahoma authorities seized more than $100,000 from Nevatt’s couriers over the course of the conspiracy. At Nevatt’s arrest, the Missouri State Highway Patrol seized approximately $40,000.
Nevatt is the final defendant to be sentenced among the 15 defendants charged in the indictment; 14 co-defendants pleaded guilty and have been sentenced.
This case was prosecuted by Assistant U.S. Attorney Bruce Rhoades and Assistant U.S. Attorney Ashleigh Ragner. It was investigated by the Buchanan County Drug Strike Force, the Drug Enforcement Administration, IRS-Criminal Investigation, the Buchanan County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the U.S. Postal Inspection Service and the Central Oklahoma Metro Interdiction Team.
South Carolina Man Sentenced to over 18 Years in Prison for Drug PossessionRead the Press Release
Gulfport, Miss. – Jason Cooper, 32, of Myrtle Beach, South Carolina, was sentenced yesterday by U.S. District Judge Sul Ozerden, to serve 223 months in federal prison, followed by five years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans. Cooper was also ordered to pay a $3,000 fine.
On March 26, 2018, a U.S. Border Patrol agent attempted to conduct a traffic stop on Interstate 10 in D’Iberville on a vehicle driven by Cooper. Cooper failed to stop and began throwing what was later determined to be methamphetamine from the driver’s side window. Cooper exited the interstate in Ocean Springs where law enforcement lost sight of the vehicle. Agents canvassed the area and located the vehicle, which was still occupied by Cooper and his codefendant, Jesus Ernesto Rodriguez. Inside the car, agents located 78.2 grams of methamphetamine.
Cooper pled guilty on August 13, 2018. His co-defendant, Rodriguez, pled guilty on October 15, 2018 and will be sentenced by Judge Ozerden on January 17, 2019 at 9:00 a.m. Rodriguez faces a maximum of 40 years in federal prison.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorney Shundral H. Cole.
Seventh Individual Sentenced to 5 Years in Prison for Role in Opa Locka Municipal Corruption InvestigationRead the Press Release
Dante Starks, an influential figure in Opa Locka and close associate of former City Commissioner Luis Santiago, was sentenced today to five years in prison by U.S. District Judge Jose E. Martinez for his participation in the long-running Opa Locka municipal corruption conspiracy and his failure to file federal income tax returns.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Starks pled guilty on June 25, 2018, to a two-count Superseding Information. Specifically, Starks pled guilty to conspiring to commit extortion under color of official right and federal programs bribery, in violation of Title 18, United States Code, Sections 371, 1951(a) and 666(a)(1)(B), and to failing to file his 2015 federal income tax return, in violation of Title 26, United States Code, Section 7203 (18-20313-CR-MARTINEZ). Judge Martinez sentenced Starks to 60 months in prison, to be followed by 3 years of supervised release. Starks was also ordered to forfeit $45,700 to the United States, to pay restitution to the victims of the corruption scheme and to pay $39,416 in restitution to the IRS for unpaid taxes. A victim restitution hearing has been scheduled for December 14, 2018, before Judge Martinez.
“Today, a significant participant in the long-running Opa Locka municipal corruption conspiracy was held accountable for his many criminal acts that compromised the integrity of the city’s governmental functions,” stated U.S. Attorney Fajardo Orshan. “The cases announced to date, as part of the Opa Locka corruption investigation, do not signal an end to our enforcement efforts. The U.S. Attorney’s Office and our dedicated partners at the FBI and IRS-CI remain committed to the investigation and prosecution of corrupt officials and encourage the public to continue to report all suspected criminal acts.”
"Corrupt Opa Locka municipal officials and their associates breached the public's trust and are now being held to account," said George L. Piro, Special Agent in Charge, FBI Miami. “Public corruption remains a top priority for the FBI. We encourage anyone who may have information about corruption to come forward and report it. This information is vital to our work.”
“Today's sentencing brings an important defendant in this corruption investigation to justice. The results of this case send a clear message that the law applies to everyone, regardless of position or power,” stated Michael J. De Palma, Special Agent in Charge, IRS-CI. “This joint law enforcement effort shows our commitment to investigate individuals who violate the public trust, and IRS-CI will continue to utilize our financial expertise in these cases where individuals misuse official positions and ignore their tax obligations.”
According to the court record, including the stipulated factual basis for the plea, Starks conspired with former Opa Locka City Commissioner Luis Santiago, former Opa Locka City Manager David Chiverton, and former Opa Locka Assistant Public Works Director Gregory Harris, to use the official positions and authority that Santiago, Chiverton, and Harris had with the City of Opa Locka to solicit, demand, and obtain personal payments from businesses and individuals in exchange for taking official actions to assist and benefit those businesses and individuals in their official dealings with the City of Opa Locka.
Although Starks was not an official or employee of the City of Opa Locka, he was closely associated with and had great influence over Santiago. Starks also had, and exercised significant influence over, numerous other city officials and employees, including Chiverton and Harris, and he regularly used that significant influence to pressure and direct city officials and employees to take official actions on matters relating to occupational licenses, code enforcement citations and fines, liens, water service and billing, zoning, and city contracting. Working together, Santiago and Starks solicited and obtained illegal payments from businesses and individuals in Opa Locka, and in exchange, Santiago would take official actions on their behalf, and Starks and Santiago would pressure and direct Chiverton, Harris, and other City of Opa Locka employees to take official actions on behalf of those businesses and individuals.
In addition, Starks participated in a conspiracy with Santiago and others to receive bribes in exchange for ensuring that a particular company received a city contract. In April 2015, Santiago and Starks met with Raul Sosa Sr. (“Sosa Sr.”), who agreed to pay them a $10,000 bribe to ensure that the company Sosa Sr. was associated with, referred to as the “Towing Company,” was selected as one of the companies receiving a city towing contract. Over the next two months, Starks collected $10,000 in cash payments from Raul Sosa Jr. (“Sosa Jr.”), the Towing Company’s manager, and in exchange, Starks arranged for Opa Locka’s Purchasing Director to assemble and prepare the Towing Company’s bid package. After this bid was submitted, Starks violated the city’s purchasing Cone of Silence by contacting a member of the city’s committee evaluating the towing bids and directing that individual to rank the Towing Company as the number one company. To complete the illegal arrangement, at the June 24, 2015, City Commission meeting authorizing the award of the towing contracts, Santiago used his position as a City Commissioner to bring forward and vote in favor of the resolution authorizing the City Manager to enter into a city contract with the Towing Company.
Starks also willfully failed to file federal income tax returns for the tax years 2014, 2015 and 2016. Starks had over $39,000 in unpaid tax liability arising from the income he earned during those years.
Starks was the seventh individual to be sentenced for his involvement in the Opa Locka corruption conspiracy. Related cases arising from the Opa Locka corruption investigation are the following:
Santiago previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20971-CR-WILLIAMS). Santiago was sentenced to 51 months in prison (the sentence was subsequently reduced to 30 months in prison).
Chiverton previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20596-CR-ALTONAGA). Chiverton was sentenced to 38 months in prison, to be followed by 8 months of home confinement.
Harris previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20589-CR-BLOOM). Harris was the first defendant to plead guilty to charges arising from this investigation, and received a sentence of probation.
Sosa Sr. and Sosa Jr. previously pled guilty to conspiracy to commit Federal programs bribery (Case No. 18-20256-CR-MARTINEZ). Sosa Sr. was sentenced to 30 months in prison, consecutive to a 78-month sentence he received for an unrelated federal tax conviction in 2016. Sosa Jr. was sentenced to probation.
Demetrius Corleon Taylor, a non-employee who also helped collect money from Opa Locka businesses in exchange for official actions by city employees, previously pled guilty to conspiracy to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20890-CR-GAYLES). He was sentenced to 5 months in prison, to be followed by 5 months of home confinement.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI Miami Area Corruption Task Force and IRS-CI in this matter. Mrs. Fajardo Orshan thanked the Miami-Dade Police Department and Hialeah Police Department for their assistance. This case was prosecuted by Assistant U.S. Attorneys Edward N. Stamm and Maurice Johnson.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Second Defendant Pleads Guilty to Conspiracy to Commit Series of Armed Robberies in Tulare and Kern CountiesRead the Press Release
FRESNO, Calif. — Ulises Medina, 25, of Earlimart, pleaded guilty on Tuesday to conspiracy to commit Hobbs Act robbery, U.S. Attorney McGregor W. Scott announced.
According to court documents, Medina was a member of a conspiracy to commit a series of armed robberies of gas stations, convenience stores, and liquor stores from May 19, 2016, until July 26, 2017. Medina and his conspirators committed at least seven armed robberies in Tulare and Kern Counties between May 2016 and January 2017. The next month, Medina and his associates travelled to Nebraska, where they committed two more robberies. They then returned to California, where they committed three more armed robberies.
In his guilty plea, Medina admitted that he was part of this conspiracy, and that he robbed Joe’s Westside in Porterville, on January 18, 2017. Prior to the robbery, Medina and other conspirators stole a 2006 Chevrolet Trailblazer by pushing a hole in the driver’s side lock, cracking the steering shaft, and starting the vehicle without a key. They drove the vehicle to Joe’s Westside where they entered the store wearing masks and carrying guns.
Inside the store, Medina and other co-conspirators ordered the store clerk to the ground at gunpoint, forced the clerk to open the cash register, and stole over $8,000. Then they fled in the stolen Chevrolet Trailblazer, which they abandoned approximately half a mile away with the engine still running.
This case is the product of an investigation by the Federal Bureau of Investigation, Tulare County Sheriff’s Office, Porterville Police Department, Lindsay Police Department, Bakersfield Police Department, Fremont (Nebraska) Police Department, and Dodge County (Nebraska) Sheriff’s Office. Assistant U.S. Attorneys Ross Pearson and Kathleen Servatius are prosecuting the case.
Medina is scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O’Neill on February 25, 2019. Medina faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Co-defendant, Javier Beltran, 34, of Strathmore, previously pleaded guilty to two counts of use of a firearm during and in relation to a crime of violence. Beltran is scheduled to be sentenced by Judge O’Neill on January 14, 2019.
This case was brought as a 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. PSN was reinvigorated in 2017 as part of the Department of Justice’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.
Salinas Resident Sentenced to Prison for Tax SchemeRead the Press Release
SAN JOSE – Norma Morfin Mandujano, aka Norma Morfin, was sentenced today to 30 months in prison, and ordered to pay $7,505,519 in restitution, for her role in a conspiracy to submit false claims to the government, announced United States Attorney Alex G. Tse, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Tara Sullivan. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge.
Morfin, 47, of Salinas, pleaded guilty to the charge on July 18, 2018. According to the plea agreement, Morfin admitted that, during 2012, she conspired with her codefendants to obtain the personal identifying information of others, and to use that information to file more than 2,300 fraudulent income tax returns with the Internal Revenue Service. These returns reported fake wages and fraudulently claimed dependents, education expenses, and tax credits. In total, the returns sought approximately $9.7 million in refunds, of which more than $7.5 million were paid. Morfin and her co-conspirators directed the fraudulently obtained refunds into bank accounts they controlled.
A federal grand jury indicted Morfin on July 13, 2017, charging her with one count of conspiracy to submit false claims, in violation of 18 U.S.C. § 286.
In addition to the prison term and restitution, Judge Koh ordered Morfin to serve a 3-year period of supervised release. The defendant will begin serving the sentence on January 15, 2019.
Other co-defendants indicted in connection with the conspiracy include the following:
Name
Charge
Status
Jacqueline Acosta, aka Jaqueline Ramos, aka Jackie Acosta
Pleaded guilty on
October 17, 2018 to conspiracy,
in violation of 18 U.S.C. § 286, and two counts of bank fraud,
in violation of 18 U.S.C. § 1344(2)
Sentencing scheduled for
March 20, 2019
Ana Bajo, aka
Ana Covarrubias
Pleaded guilty on
April 18, 2018, to conspiracy,
in violation of 18 U.S.C. § 286
Sentencing scheduled for
April 10, 2019
Jorge Vissani
Charged with one count of conspiracy, in violation of 18 U.S.C. § 286
Fugitive of justice
The charge pending against Jorge Vissani merely alleges that a crime has been committed; all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the Vissani faces a maximum statutory sentence of ten years in prison, a fine of $250,000, three years of supervised release, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
In addition, on October 30, 2018, Antonio Ahumada Rivas pleaded guilty to two counts of bank fraud in connection with the scheme. Judge Koh scheduled Rivas’s sentencing for February 6, 2019.
Assistant United States Attorney Michael G. Pitman and Trial Attorney Christopher Magnani are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Rockford Man Arrested on Drug Trafficking ChargesRead the Press Release
ROCKFORD — A Rockford man was arrested this morning on drug trafficking charges.
JOSE TREJO, 28, was indicted on Nov. 6, 2018, on one count of conspiracy to possess with intent to distribute - and to distribute - 500 grams or more of cocaine in Rockford between July 8, 2017, and June 20, 2018, and five counts of distributing quantities of cocaine on July 8, 2017, July 13, 2017, Aug. 5, 2017, Sept. 11, 2017, and Sept. 26, 2017. Trejo is scheduled to appear in federal court in Rockford for an initial appearance and arraignment today at 2:00 p.m.
The conspiracy count carries a mandatory minimum penalty of five years in prison and a maximum penalty of up to 40 years in prison, a period of supervised release of at least four years and up to life, and a fine of up to $5 million. Each distribution count carries a maximum penalty of up to 20 years in prison, a period of supervised release of at least 3 years and up to life, and fine of up to $1 million. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and 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.
The arrest was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Brian McKnight, Special Agent-in-Charge of the Chicago Division of the United States Drug Enforcement Administration; Dan O’Shea, Rockford Police Chief; Gary Caruana, Winnebago County Sheriff; and Leo P. Schmitz, Director of the Illinois State Police. The federal investigation was conducted by the DEA Rockford Task Force, Rockford Police Department, Illinois State Police Stateline Area Narcotics Team (SLANT), and Winnebago County Sheriff’s Department. Homeland Security Investigations assisted in the investigation.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Rochester Felon Sentenced on Gun ChargeRead 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 Erick Arroyo Cruz, 34, of Rochester, NY, who was convicted of being a felon in possession of a firearm and ammunition, was sentenced to serve 63 months in prison by U.S. Chief District Judge Frank P. Geraci.
Assistant U.S. Attorney Katelyn Hartford, who handled the case, stated that on March 8, 2018, the defendant was a passenger in a vehicle being driven by an individual who was the subject of an outstanding federal arrest warrant. When police stopped the vehicle, they discovered Cruz had a loaded .22 caliber pistol in his jacket pocket. The firearm was previously reported stolen during a gun store burglary in Wayne County. Investigators learned that the defendant had numerous prior felony convictions and that he had just been released from prison less than 24 hours earlier. As a result of his prior convictions, Cruz was legally prohibited from possessing a firearm.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Mark Simmons and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
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Philadelphia Man Sentenced to 30 Years for Armed Robbery of PharmacyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Christopher Corley a/k/a “Kuron Corley,” 25, of Philadelphia, was sentenced by United States District Judge Gene E.K. Pratter to 30 years’ imprisonment, followed by 5 years of supervised release. Corley was found guilty by a jury last year of conspiracy to commit armed robbery and armed robbery of the Blue Grass Pharmacy located in Northeast Philadelphia. He also was convicted of related narcotics and firearms offenses. During the armed robbery, defendant Christopher Corley acted as the getaway driver while his armed co-conspirators demanded money and drugs from the pharmacist.
“Corley’s partners in crime terrorized the pharmacist in the course of robbing him. They pointed a gun at the pharmacist’s face, forced him to kneel down behind the counter, and pressed that same gun against his back,” said U.S. Attorney McSwain. “Corley made the quick getaway possible, and he reaped the benefits of his co-conspirators’ violent acts by taking his share of the money and drugs they stole. My Office will continue to partner with local law enforcement to prosecute violent crimes to the fullest extent of the law.”
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. The Department of Justice 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.
This case was investigated by the FBI and the Philadelphia Police Department. It is being prosecuted by Assistant U.S. Attorney Thomas M. Zaleski.
Owner of Bulk Mailing Company Admits $1.5 Million Mail Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – The owner and operator of a Gloucester County bulk mailing company today admitted defrauding the U.S. Postal Service (USPS) of more than $1.5 million in postage, U.S. Attorney Craig Carpenito announced.
Anthony L. Bucolo, 75, of Ridley Park, Pennsylvania, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of conspiracy to commit mail fraud.
According to documents filed in this case and statements made in court:
Bucolo owned and operated a business that prepared bulk mail, typically for shipping mass mailings on behalf of other businesses, educational institutions and charitable organizations. With the assistance of one of his employees, Bucolo defrauded the USPS of more than $1.5 million in postage while billing clients as if such postage had been paid. Bucolo and his conspirator underreported the volume of mail pieces actually mailed, altered USPS forms, and added mail onto pallets, trays, tubs or sacks after the mail had been accepted and postage assessed and collected by a postal employee.
The wire fraud conspiracy charge to which Bucolo pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss resulting from the offense. In his plea agreement, Bucolo agreed to make restitution for the full amount of the loss, $1.5 million, which was paid in full today. Sentencing is scheduled for Feb. 22, 2019.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Daniel B. Brubaker, and special agents of the USPS-Office of Inspector General, under the direction of Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S Attorney’s Office in Camden.
Defense counsel: Michael J. Engle Esq., Philadelphia
Organizer of Cocaine Trafficking Organization Sentenced to 23 Years for Conspiracy and Possession of CocaineRead the Press Release
St. Croix, USVI – District Court Judge Wilma A. Lewis, on November 13, 2018, sentenced Sergio Quinones-Davila, age 44, of Orlando, Florida, to 276 months (23 yrs) in prison for conspiracy to possess cocaine with intent to distribute and possession of cocaine with intent to distribute, United States Attorney Gretchen C.F. Shappert announced. Judge Lewis also sentenced Quinones-Davila to five years of supervised release, and ordered him to pay a fine of $10,000.000 and a special assessment of $400.00.
On June 26, 2018, a federal jury convicted Quinones-Davila along with five co-defendants on cocaine related charges. Evidence at trial revealed that the organization planned the retrieval of over 300 kilograms of cocaine during the period of the conspiracy which existed from January 2014 to March 2016. Quinones-Davila functioned as a leader in the drug trafficking organization. He organized the mid-sea retrieval of 35 kilograms of cocaine in August 2014, 71 kilograms of cocaine in October 2014, 80 kilograms of cocaine in November 2014 and 87 kilograms of cocaine in November 2015. Except for the one in November 2014, all other shipments were successfully retrieved and transported, via boat, to St. Croix. On November 14, 2015, law enforcement agents seized the 87 kilogram shipment packaged in four suitcases on a beach at Knight’s Bay on St. Croix. They apprehended four members of the organization.
Fourteen individuals were originally charged as part of the drug trafficking organization. Prior to trial six defendants entered guilty pleas and were sentenced. Of the six defendants that went to trial two others have been sentenced: Jesus Burgos-Montanez was sentenced to 68 months; and Jose Hodge was sentenced to 240 months.
The case was investigated by the U.S. Drug Enforcement Administration and was prosecuted by Assistant U.S. Attorneys Alphonso G. Andrews, Jr. and Everard E. Potter.
Oconee County High School Janitor Sentenced to 51 Months in Prison for Recording Video of Minors in Locker RoomRead the Press Release
ATHENS-- Timothy Brian Burnette was sentenced today to 51 months in federal prison, followed by 25 years of supervised release, for his involvement in recording minors with a cell phone, announced United States Attorney Charles E. Peeler. There is no parole in the federal system, and Mr. Burnette will also be required to register as a sex offender. The sentence for Attempted Possession of Child Pornography was handed down by the Honorable C. Ashley Royal, U.S. District Judge.
In his plea agreement, Mr. Burnette, age 41, of Union Point, Georgia, admitted that while working as a custodian at Oconee County High School, he repeatedly used a cell phone to record video of minor students while they were changing in the locker room. Furthermore, a search warrant executed on Mr. Burnette’s cell phone revealed numerous photographs, internet searches and tabs that were pornographic in nature, including searches related to high school girls engaged in sexual activity and locker room pornography videos.
“Every child deserves a safe, secure place to attend school,” said Charles E. Peeler, U.S. Attorney for the Middle District of Georgia. “Mr. Burnette not only violated the sacredness of the school environment, but caused irreparable harm to the minors he filmed and their families. We will not tolerate crimes against children. I want to applaud the Oconee County Sheriff’s Office and the FBI for working quickly to put an end to this predatory behavior and protecting young people.”
“This sends a strong message that this type of recording and behavior won’t be tolerated,” said Sheriff Scott R. Berry, Oconee County Sheriff’s Office.
“Mr. Burnette’s actions are disturbing and unacceptable,” said Chris Hacker, Special Agent in Charge of the FBI Atlanta Field Office. “This sentence removes a dangerous child predator from our community who was preying on the most vulnerable in our society, children.”
This case was investigated by the Oconee County Sheriff’s Office and the Federal Bureau of Investigation. The Georgia Bureau of Investigation provided additional assistance. Assistant U.S. Attorney Peter D. Leary prosecuted the case for the Government.
Questions concerning this case can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Norwalk man sentenced to 20 years in prison for sex trafficking after fraudulently inducing teen girls into engaging in sexually explicit conductRead the Press Release
A Norwalk man was sentenced to 20 years in prison for fraudulently inducing teen girls into engaging in sexually explicit conduct and recording the conduct under the false promise that he was producing a pornographic film.
Charles Thomas Barbarotta, 33, previously pleaded guilty to two counts of sex trafficking of a minor.
Barbarotta used fraud to cause two minors to engage in commercial sex acts in December 2016.
Barbarotta also used a scheme to induce the two minor victims into performing sex acts with him for what he fraudulently purported would be a pornographic film he would produce or direct, according to court documents.
“This man misrepresented himself to trick two underage girls,” U.S. Attorney Justin Herdman said. “This case is a cautionary tale for teens and parents alike. This sentence means the defendant will not be able to prey on minors anymore, but we know there are others out there like him.”
“We are pleased this child predator will be behind bars for a significant amount of time,” said FBI Special Agent in Charge Stephen D. Anthony.
The investigating agency in this case is the Federal Bureau of Investigation and the Ottawa, Huron and Erie County Sheriff’s Offices. The case is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman.
North Providence Dentist Sentenced for Tax EvasionRead the Press Release
PROVIDENCE, RI – A North Providence dentist who admitted to diverting and failing to report as much as $1.2 million dollars in payments made to his business was sentenced yesterday to 3 years probation and 280 hours per year of community service involving the provision of free dental care.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Lawrence P. Stephenson, 72, of Lincoln, to pay a fine of $75,000.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 18-24 months. The government recommended the Court impose a sentence of 18 months in prison.
Stephenson’s sentence is announced by United States Attorney Stephen G. Dambruch and Kristina O'Connell, Special Agent in Charge of Internal Revenue Service Criminal Investigation (IRS-CI).
At the time of his guilty plea, Stephenson admitted to the Court that in as early as 2011, he began diverting portions of his practice’s business receipts by depositing checks from insurance carriers and patients into a personal bank account. An investigation by IRS-CI revealed that Stephenson failed to report approximately $1.2 million dollars paid to his dental practice and deposited elsewhere, thus failing to pay taxes due the IRS.
Stephenson admitted that over the years he made significant withdrawals from the personal account, to include approximately $530,000 in 2013 and 2014. The funds were transferred to other banks and investment accounts he owned. Some of the funds were used to pay personal expenses.
In 2013 alone, Stephenson admitted to underreporting his income to the IRS by more than $320,000.
Since the date of Stephenson’s guilty plea and conviction, he has paid $906,557.78 in back taxes and penalties due the IRS for tax years 2011-2014.
The case was prosecuted by Assistant U.S. Attorney Dulce Donovan.
North Canton woman indicted for robbing banks in Kent, Boardman, Youngstown and FindlayRead the Press Release
A North Canton woman was indicted for robbing four banks.
Fellicia Smith, 39, was indicted on four counts of bank robbery.
The indictment Smith robbed the Fifth Third Bank located in Kent on Dec. 24, 2016, the First National Bank in Boardman on Feb. 18, 2017; the Key Bank in Youngstown on March 31, 2017, and the Key Bank in Findlay on April 3, 2017.
In each robbery, Smith showed the bank teller a knife and demanded cash, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Peter E. Daly.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
New York Man Sentenced to 7 Years in Prison for Conspiring to Transport Crack Cocaine from Buffalo for Sale in New CastleRead the Press Release
PITTSBURGH, PA -A New York resident has been sentenced in federal court to 7 years’ imprisonment on his conviction of conspiracy to distribute 28 grams or more of crack cocaine, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Marlin Scott, 26, of Buffalo, NY.
According to information presented to the Court, in 2015, the Bureau of Alcohol, Tobacco Firearms and Explosives, the Drug Enforcement Administration, and other agencies joined forces in a long-term wiretap investigation of drug trafficking in New Castle, PA. The investigation revealed that Marlin Scott conspired with others to possess with intent to distribute and distribute crack cocaine, which was transported from Buffalo, NY, to the New Castle, PA area for further distribution.
Prior to imposing sentence, Judge Fischer stated that the sentence was sufficient but not greater than necessary to fulfill the purposes of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the New Castle Police Department, and the Lawrence County Drug Task Force for the investigation leading to the successful prosecution of Scott.
New York Man Pleads Guilty to Attempting to Provide and Conspiring to Provide Material Support to ISISRead the Press Release
Adam Raishani, aka “Saddam Mohamed Raishani,” 32, of the Bronx, New York, pleaded guilty to attempting to provide and conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers and U.S. Attorney Geoffrey S. Berman for the Southern District of New York made the announcement. Raishani pleaded guilty today to a Superseding Information in Manhattan federal court before U.S. District Judge Ronnie Abrams.
According to the allegations in the Superseding Information, Complaint, other court filings, and statements made during court proceedings:
Beginning in at least the fall of 2015, Raishani conspired with another ISIS supporter (“CC-1”) to provide material support to ISIS by means of CC-1 traveling abroad to join and fight for ISIS. On or about Oct. 30, 2015, CC-1 departed from JFK Airport for Istanbul, Turkey, where he planned to cross into Syria to join ISIS. Raishani arranged for CC-1’s transportation from the Bronx, New York, to John F. Kennedy International Airport (“JFK Airport”), and Raishani accompanied CC-1 from the Bronx to JFK Airport.
Raishani continued communicating with CC-1 following CC-1’s departure. For example, on or about Jan. 2, 2016, Raishani sent an email to CC-1 stating: “Glad tidings brother. Its [sic] been some time since your voyage. I pray to Allah The ALL MIGHTY to grant you success. Until next time.”[1] On or about April 1, 2016, Raishani sent another email to CC-1 stating: “I hope Allah has bestowed you what you were seeking. . . . May Allah grant you sincere and clean intentions and make you among the righteous in Janatal Firdaus [a reference to Islamic paradise]. . . . Please return this email and respond to what we agreed upon before your departure. Until next time.” On or about May 3, 2016, CC-1 responded to Raishani, indicating that he had succeeded in joining the Islamic State. CC-1 informed Raishani that CC-1 was “fine and well,” that CC-1 “wished you [Raishani] were here with me,” and that “here we are living with izza [honor].”
Also in May 2016, CC-1 posted content on a particular social media application (“Application-1”) indicating that CC-1 was living in the Islamic State and fighting on its behalf. For example, CC-1 sent messages to another user of Application-1 stating: “I’m living in the Islamic state safely and secure by the permission of Allah,” “[h]ere we are fighting the kuffars [non-believers],” and “I left the land of kuffars now I’m living in the khilafah [the caliphate].” CC-1 also posted a photograph on Application-1 that shows CC-1 carrying an assault rifle and a flag representative of ISIS.
Between Jan. and June of 2017, Raishani had a series of meetings with individuals who were, unbeknownst to Raishani, a confidential source working at the direction of law enforcement and an undercover law enforcement officer. In the course of those meetings, Raishani admitted that he had previously helped another person (CC-1) travel overseas to join the Islamic State, and stated that he intended to travel overseas to join ISIS himself. During those meetings, Raishani also downloaded and viewed violent ISIS propaganda videos, and indicated his desire to wage jihad and his belief that the Quran can be read to justify the violence, including beheadings, engaged in by ISIS.
By April 2017, Raishani was actively planning to travel abroad to join ISIS. Raishani indicated that he aspired to join ISIS in Syria and that he aimed to travel before the end of Ramadan, an Islamic holy month that ran from approximately May 26 through June 24 of 2017. In June 2017, Raishani made preparations to leave, including by paying off debts and purchasing clothing that he intended to wear for training with ISIS overseas. Raishani indicated his intention to meet an ISIS member in Turkey, who would facilitate Raishani’s joining the terrorist organization in Syria. On June 21, 2017, Raishani attempted to board a flight bound for Turkey (via Portugal) at JFK Airport, at which point law enforcement officers arrested him.
Following Raishani’s arrest, the FBI searched Raishani’s Bronx residence pursuant to a search warrant. Among the evidence recovered was a letter from Raishani addressed to members of his family, which the FBI found in a safe in Raishani’s bedroom. In the letter, Raishani—who left behind his wife and young son when he attempted to travel to Syria to join ISIS—advised his wife that she could still choose to “[j]oin” him in the Islamic State, and he expressed regret that she did not share his radical views and that he had been unable to convince her to accompany him to join ISIS. Raishani also wrote: “Do Not Divulge this document and other documents that I have giv[en] to you to the authorities. Do not believe their plots. Do not divulge my absences but instead say I went to do volunteering outside the country with my medical skills and health background.”
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Raishani, pleaded guilty to one count of attempting to provide material support or resources to a designated foreign terrorist organization, namely, ISIS, which carries a maximum sentence of 20 years in prison, and one count of conspiring to provide material support or resources to ISIS, which carries a maximum sentence of 5 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 a judge. Sentencing is scheduled for March 8, 2019, before Judge Abrams.
Mr. Demers and Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the NYPD’s Intelligence Division. Mr. Demers and Mr. Berman also thanked the New York Office of U.S. Customs and Border Protection.
Assistant U.S. Attorneys Sidhardha Kamaraju, Jane Kim, and George D. Turner of the Southern District of New York are in charge of the prosecution, with assistance from Trial Attorney Kevin Nunnally of the Counterterrorism Section of the Department of Justice’s National Security Division.
[1] Communications and conversations discussed herein are described in substance and in part.
New Castle Man Charged with Unlawful Possession of Cocaine, a Gun and AmmunitionRead the Press Release
PITTSBURGH, Pa. - A resident of New Castle, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearm and narcotics laws, United States Attorney Scott W. Brady announced today.
The two-count indictment, returned on November 13, named Gage Gilmore, 21, as the sole defendant.
According to the indictment, on or about February 6, 2018, Gilmore unlawfully possessed cocaine, and firearms and ammunition after having been previously convicted of crimes punishable by imprisonment for a term exceeding one year.
The law provides for a maximum sentence of not more than 10 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Castle 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. Turning the tide of rising violent crime in America is a top priority of the Department of Justice. In October 2017, as part of a series of actions to address this crime trend, the Attorney General announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.