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Monday 1 October 2018
Judge Sentences Somerset County Man to 6 Years in Prison for Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A Somerset County resident has been sentenced in federal court in Johnstown to 72 months in prison and 10 years’ supervised release on his conviction of possession of child pornography, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Robert G. Landsbach, 37, of Stoystown, Pa..
According to information presented to the court, on October 5, 2016, Landsbach knowingly possessed pictures and videos in individual computer graphic files, which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the U.S. Immigration and Customs Enforcement/Department of Homeland Security - Child Exploitation, the Pennsylvania Attorney General’s Office, and the Pennsylvania State Police, Somerset, for the investigation that led to the successful prosecution of Landsbach.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jossean Manuel Echevarria and Diquan Nashawn Ray Charged with Interstate Transportation of Stolen PropertyRead the Press Release
HAMMOND – Jossean Manuel Echevarria, 30 years old, of Hammond, Indiana, and Diquan Dashawn Ray, 23 years old, of Burnham, Illinois were charged on October 1, 2018 by criminal complaint with Interstate Transportation of Stolen Property, announced U.S Attorney Kirsch.
According to documents in the case, Echevarria and Ray stole copper wire from Clayhole Woods, a Cook County Forest Preserve in Illinois. They then transported that copper wire across state lines into Indiana. Officers stopped Echevarria and Ray in a vehicle in Hammond, Indiana and found them in possession of the copper wire from the forest preserve.
The United States Attorney’s Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the Judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated by the FBI GRIT Task Force in conjunction with Hammond Police Department, Lansing (Illinois) Police Department, and Cook County Sheriff’s Department. This case is being prosecuted by Assistant United States Attorney Jennifer Chang.
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Joplin Sex Offender Sentenced to 17 Years for Child PornographyRead the Press Release
A Joplin, Mo., man with a prior sex conviction was sentenced in federal court today for receiving and distributing child pornography over the internet.
Delbert C. Feezell, 58, was sentenced by U.S. District Judge Beth Phillips to 17 years and six months in federal prison without parole. The court also sentenced Feezell to 15 years of supervised release following incarceration, and ordered him to pay $1,000 in restitution to one of his victims.
Feezell, who has prior convictions for sexually assaulting an 8-year-old child and for indecent exposure, pleaded guilty on May 24, 2018.
The investigation began on Nov. 20, 2015, when Feezell uploaded a video of child pornography to YouTube, which was reported to the National Center for Missing and Exploited Children. Feezell uploaded additional images of child pornography to another website on April 7, 2016, after which a search warrant was executed at his residence. Investigators seized a laptop computer that contained 785 video files and five images of child pornography. The depictions include children as young as toddlers being sexually assaulted by adult males. Feezell engaged in his illegal activities using his unwitting neighbor’s internet service.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jacksonville Repeat Offender Sentenced to 16 Years in Federal Prison for Firearms OffenseRead the Press Release
Jacksonville, Florida– U.S. District Judge Marcia Morales Howard today sentenced Carl L. Lawson (46, Jacksonville) to 16 years in federal prison for possessing a firearm as a convicted felon and for violating the conditions of supervised release that Lawson was serving in connection with a prior federal drug conviction. Due to his prior multiple felony convictions, he qualified for an increased penalty under the Armed Career Criminal Act. Lawson pleaded guilty on July 5, 2018.
According to court documents, in early 2018, Lawson sold cocaine to a confidential informant on three occasions, and in one instance, offered to sell a firearm. On February 22, 2018, federal agents executed search warrants at the two locations in Jacksonville where Lawson had sold the cocaine. At the first location, agents found a loaded pistol and ammunition. At the second location, agents found Lawson (alone), another loaded pistol, a loaded assault-style rifle, and 60 baggies of cocaine. At the time, Lawson had previous felony convictions for sale of cocaine, armed robbery, and distribution of crack cocaine and is therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Investment Adviser Sentenced to 78 Months’ Imprisonment for Running Ponzi SchemeRead the Press Release
PHILADELPHIA – First Assistant U.S. Attorney Jennifer Arbittier Williams announced today that Carl Frederic Sealey was sentenced to 78 months in prison for running a Ponzi scheme and bilking his clients out of more than $1.6 million. United States District Court Judge Gerald J. Pappert, who presided over the proceedings, further ordered the ex-Chairman and Chief Executive Officer of Global Standard Industries (GSI) and SEK Industries (SEK) to be taken into custody immediately to begin serving his sentence.
Sealey, 43, of Cinnaminson, New Jersey, claimed that GSI was a multi-national private equity investment firm with more than 500 employees that specialized in investments of at least $50 million, more than $15 billion in managed domestic assets, and another $33 billion offshore. Almost every investor was led to believe that the investments were risk free and that they would receive their money back with 10 percent interest within 90 days. Additionally, Sealey lulled investors by representing to them that their “deal” had been delayed and that they could get their money back quicker if they invested additional money for other “deals” that GSI had underway.
In reality, GSI only had physical offices in Philadelphia and New York City and there were not 500 investment professionals employed by GSI. More importantly, there were never any real estate closings or business takeovers underway by anyone at GSI. When investors wired money to accounts exclusively maintained by Sealey, he stole their money and used the majority of the money received from investors to support an extravagant lifestyle, including a personal driver, hotel accommodations, restaurants, spa services, retail shopping, and other personal expenditures.
“Individuals trust investment advisors with their life savings and their economic well-being,” said First Assistant U.S. Attorney Williams. “This defendant blatantly betrayed that trust by making false promises to investors with the ultimate goal of stealing their money and living the high life with their hard-earned savings. The sentence imposed in this case, and the order requiring the defendant to begin serving his sentence immediately after the hearing, reflect the seriousness of the charges.”
Sealey pleaded guilty to conspiracy to commit wire fraud and wire fraud in June 2018. In addition to the sentence of 78 months, Sealey was ordered to pay more than $1,508,325 in restitution to the victims of his scheme.
“Carl Sealey invented offices, employees, and business deals that didn’t exist, in order to win investors’ trust,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “When people bought his sales pitch, he promptly sold them out, funding his extravagant lifestyle with their money. The FBI is gratified to help bring to justice the perpetrator of such blatant fraud.”
The investigation was led by agents from the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Anita Eve.
Huntsville Man Arrested of Being a Felon in Possession of a FirearmRead the Press Release
BIRMINGHAM – Federal agents today arrested the father of a Huntsville second-grader who was accidentally shot after taking a gun to school and showing it to a friend in a restroom at Blossomwood Elementary School in Huntsville, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
ATF arrested LETROY COLE JR., 41, on the federal charge of being a convicted felon in possession of firearm. A federal grand jury returned the indictment against Cole on Sept. 26. The indictment charges that Cole possessed a Kel Tec model P-32 .32-caliber semi-automatic pistol on Sept. 17 in Madison County. He previously was convicted of felony possession of narcotics in circuit court in Cook County, Ill., in 1995, and of possession of a pistol by a felon in Cook County Circuit Court in February 2002, according to the indictment.
“Convicted felons who possess firearms will soon possess bed space in a federal prison,” Town said. “In this case, a federal grand jury returned a federal indictment with that will be presented in federal court and, upon conviction, a federal judge will impose a prison sentence that will not provide the sanctuary of parole.”
ATF Special Agent in Charge, Marcus Watson said. “ATF Crime Gun Intelligence Centers are the driving force to reduce the potential for violent crime and disrupting the shooting cycle that plagues our neighborhoods, to include firearms recovered in the school systems.”
The maximum penalty for federal charge of being a convicted felon in possession of a firearm is 10 years in prison and a $250,000 fine.
ATF investigated the case, in partnership with the Huntsville Police Department and the Madison County District Attorney’s Office. Assistant U.S. Attorney Robert J. Becher Sr. is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Heroin Dealer Sentenced to 120 Months in Federal Prison for Possession of Heroin with Intent to DistributeRead the Press Release
Memphis, TN – A Memphis man has been sentenced to ten years in federal prison for possession of heroin with intent to distribute. D. Michael Dunavant, United States Attorney for the Western District of Tennessee announced the sentence today.
According to information presented in court, in February 2016, the Organized Crime Unit of the Memphis Police Department initiated an investigation into the illegal drug trafficking of Jerrico Long, 31, a/k/a "Lil Rico." The investigation revealed that Long was selling heroin in various areas of Memphis. In June 2016, detectives on the case orchestrated three controlled drug purchases from Long using a confidential source during which they recovered heroin.
U.S. Attorney Dunavant said, "The U.S. Attorney’s Office has development a district-specific strategy to address the opioid abuse and overdose epidemic by prioritizing cases involving the distribution of heroin. Drug dealers who sell this deadly poison in West Tennessee will be held accountable. We gave ‘Lil Rico’ a big sentence that will remove him from our streets and make Memphis a safer place."
On September 27, 2018, U.S. District Court Judge Sheryl H. Lipman sentenced Long to 120 months imprisonment followed by 3 years of supervised release.
The Organized Crime Unit of the Memphis Police Department and the Tennessee Bureau of Investigation investigated this case.
Assistant U.S. Attorney Raney Irwin prosecuted this case on the government’s behalf.
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Hazleton Man Guilty of Fraud and Naturalization OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Lucas Hernandez-Torres, age 47, of Hazleton, Pennsylvania, was charged in a criminal information with defrauding the United States, and with the unlawful procurement of naturalization. The charges were filed on February 1, 2017, but remained under seal until September 27, 2018.
According to United States Attorney David J. Freed, Hernandez-Torres admitted to defrauding the IRS by allowing other conspirators to claim his dependents as their own, thereby incurring federal tax credits and refunds. Hernandez-Torres received kickbacks in return, and also made false claims in his personal tax returns for wages that he had not earned, thus accruing additional tax credits. The offenses occurred for tax years 2010 through 2014. Hernandez-Torres, a Mexican National, also made false statements on a naturalization application.
Hernandez-Torres pleaded guilty to the charges on April 25, 2017, before United States District Court Judge Robert D. Mariani, and is awaiting sentencing.
The matter was investigated by Homeland Security Investigations and by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
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 the most serious charge is up to 10 years of imprisonment. 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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Hartshorne Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Paul Dean Cantrell, age 57, of Hartshorne, Oklahoma, entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by up to 20 years imprisonment, up to a $1,000,000.00 fine, or both.
The Indictment alleged that on or about January 28, 2018, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the District 18 Narcotics Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Christopher Wilson represented the United States.
Guyanese Woman Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Indrawattie Sookram, age 40, and a citizen of Guyana, pled guilty today to illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Sookram was arrested in the U.S. Virgin Islands in February 1999. In August 1999, she was convicted in the United States District Court for the District of the Virgin Islands for using a false passport, false visa and false identity to enter the United States. She was removed from the United States to Guyana on September 3, 1999, after serving six months in jail.
On May 17, 2018, she was arrested by an HSI Agent in Schenectady, New York. A fingerprint check of Sookram resulted in the discovery of the prior conviction and removal under the name Maryan Husain. Sookram admitted that in 2000, following her removal to Guyana, she returned to the United States without permission.
Sookram faces up to 10 years in prison and a fine of up to $250,000 when she is sentenced by Senior United States Judge Fredrick J. Scullin, Jr. on May 20, 2019. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by HSI and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Groveton Man Pleads Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – Robert McLain, 26, of Groveton, New Hampshire, pleaded guilty in federal court to participating in a fentanyl drug trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, as a result of an ongoing drug trafficking investigation, agents and task force officers with the Drug Enforcement Administration learned that on March 1, 2018, McLain intended to travel from New Hampshire to a location in Lawrence, Massachusetts to purchase 250 grams of a controlled substance. Agents conducted surveillance in the area of the transaction and observed a known drug trafficker get in the back seat of the car; and after a few minutes, get out again. The vehicle left Massachusetts and agents followed it directly to New Hampshire.
The agents informed a New Hampshire State Trooper patrolling Interstate Route 93 about their surveillance observations. The trooper stopped the vehicle for traffic violations and identified the driver and McLain as the passenger. McLain subsequently admitted to purchasing one gram of fentanyl which he claimed he swallowed. The owner of the vehicle consented to a search of her car and signed a consent to search form. The troopers found a hidden compartment in the vehicle that contained approximately 240 grams of fentanyl. McLain admitted that he purchased fentanyl in Lawrence and resold the fentanyl in New Hampshire. Over the course of the investigation, McLain ordered approximately 560 grams of fentanyl. McLain also admitted that he traded fentanyl in exchange for a firearm.
McLain directed officers to approximately $11,000 of admitted drug proceeds, and firearms. Officers seized four handguns, a rifle, and ammunition from McLain’s residence. They also seized soda cans that were manufactured with a hidden compartment to conceal narcotics.
McLain will be sentenced on January 15, 2019.
“It is absolutely critical that we stop the flow of fentanyl into New Hampshire,” said U.S. Attorney Murray. “Often, New Hampshire State Troopers must perform the dangerous duty of confronting drug traffickers on our highways. I am grateful for their dedicated service, as well as the tireless efforts of all of our law enforcement partners who contributed to success in this case.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and
Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky, Seth R. Aframe and Debra M. Walsh.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Gardiner Woman Pleads Guilty to Conspiracy to Distribute Heroin and CrackRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Heather Downs, 31, of Gardiner, Maine, pled guilty today in U.S. District Court to conspiracy to distribute heroin and cocaine base, commonly known as “crack.”
According to court records, between June 2015 and March 2017, Downs conspired with others to acquire heroin and crack in Rochester, New York and transport it to Central Maine for distribution. The defendant assisted Rochester dealers in distributing the narcotics in Central Maine. She provided transportation, facilitated drug deals, introduced Rochester conspirators to area distributors, and assisted other conspirators in finding residences from which to sell drugs. She also dropped off drugs and picked up proceeds from various sale points in Central Maine.
The defendant faces up to 20 years in prison, a $1,000,000 fine, and between three years and life on supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Four Charged in Federal RICO Conspiracy Indictment involving Gang-related Murder and Other CrimesRead the Press Release
Roanoke, VIRGINIA – Federal, state and local authorities announced this afternoon the first major federal prosecution of organized gang activity in Roanoke as part of the newly reinvigorated Project Safe Neighborhoods violent crime reduction initiative. The indictment charges four suspected gang members of the “Rollin 30s” gang in Roanoke with crimes including racketeering conspiracy and conspiracy to commit murder. Two of the defendants were charged with murder in aid of racketeering and related firearms offenses. United States Attorney Thomas T. Cullen, Roanoke City Police Chief Timothy Jones, and John Lenkart, Acting Special Agent in Charge of the FBI’s Richmond Division, made the announcement.
“This indictment is the first step in what will be a coordinated and sustained assault on gang-related violence in the City of Roanoke,” U.S. Attorney Cullen stated. “I am grateful for the FBI’s leadership, as well as the cooperation and dedication of our other federal, state, and local law-enforcement partners. Reducing violent crime is my top priority as U.S. Attorney, and we are all committed to working together to achieve this goal.”
“A little over three months ago U.S. Attorney Cullen and I stood with our fellow law enforcement partners in Danville, Virginia announcing indictments for over a dozen violent criminals related to gang activity; we stand here today in Roanoke making a similar announcement. I said then, “We are not finished” and today’s indictments reflect our continued effort to make communities in the Commonwealth safer,” Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division said today. “Our Central Virginia Violent Crimes Task Force will continue to work with our federal, state and local law enforcement partners to address this criminal plague that lingers in the corners of your neighborhoods; and encourage concerned citizens to report criminal activity to law enforcement.”
On September 25, 2018, a federal grand jury seated in U.S. District Court in Roanoke returned an indictment, under seal, charging four individuals. Those indictments were unsealed today.
The grand jury has charged the following:
- Sean Denzel Guerrant, a.k.a. “Denk” “Dink” and “Harlem Denk,” age 27, of Roanoke, with one count of racketeering conspiracy and one count of conspiracy to commit murder.
- Demonte Rashod Mack, a.k.a. “Murda,” age 29, of Roanoke, with one count of racketeering conspiracy, one count of murder in aid of racketeering, one count of conspiracy to commit murder, one count of using a firearm in the commission of a crime of violence, and one count of using and carrying a firearm during and in relation to a crime of violence causing death.
- Trayvone Raycron Kasey, a.k.a. “30,” age 19, of Roanoke, with one count of racketeering conspiracy, one count of murder in aid of racketeering, one count of conspiracy to commit murder, one count of using a firearm in the commission of a crime of violence, and one count of using and carrying a firearm during and in relation to a crime of violence causing death.
- Chauncey Dion Levesey, a.k.a. “Cee Guzman,” age 24, of Roanoke, with one count of racketeering conspiracy and one count of conspiracy to commit murder.
The Rollin’ 30s Crips, also known as the Rollin’ 30s or “Dirt Gang” is a national street gang founded in the greater Los Angeles, California area with smaller sets in other cities throughout the United States, including Roanoke, Virginia. The Roanoke set of the Rollin’ 30s operated primarily in northwest Roanoke, centered in and around the Lansdowne neighborhood.
According to the indictment, beginning no later than April 22, 2017, Guerrant, Mack, Kasey, and Levesy, together with others known and unknown to the grand jury, conspired to conduct a pattern of racketeering activity including multiple threats and acts involving violent crime.
Specifically, the indictment alleges that between on or about June 14, 2017, and June 15, 2017, Guerrant, Mack, Kasey, and Levesy conspired to murder “Victim D.F.” The indictment further claims that Mack, Kasey and Levesy murdered “Victim N.L.” at the direction of Guerrant.
The investigation of the case was conducted by the Roanoke City Police Department and the Federal Bureau of Investigation’s Violent Crimes Task Force. The investigation was a coordinated effort involving law enforcement assets from the Virginia State Police, Roanoke County Police Department, the Federal Bureau of Alcohol, Tobacco, and Firearms, and the Federal Drug Enforcement Agency. Assistant United States Attorneys Grayson A. Hoffman and Matthew M. Miller are prosecuting the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a federal program designed to bring together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting each community’s most violent criminals. Attorney General Sessions directed all U.S. Attorney’s Offices to work in partnership with federal, state, and local law enforcement, as well as the local civilian community, to develop effective, targeted strategies to reduce violent crime. This case is a product of that collaborative effort.
Founder and CEO of Charlotte Area Start-Up Company Sentenced to 10 Years for Defrauding Victims of More Than $25 MillionRead the Press Release
CHARLOTTE, N.C. – Andrew Murray, U.S. Attorney for the Western District of North Carolina announced that U.S. District Judge Robert J. Conrad, Jr. sentenced Robert M. Boston, 54, of Hickory, N.C., to 120 months in prison and 2 years of supervised release for his role in defrauding victims of more than $25 million. A federal jury convicted Boston on all counts of conspiracy, wire fraud, securities fraud and money laundering following a five-day trial in December 2017. Judge Conrad also sentenced Boston’s co-defendant, Robert S. LaBarge, to 2 years in prison and 2 years of supervised release. Judge Conrad further ordered that Boston is liable for more than $27,366,733.59 million in restitution to victims, and ordered him to forfeit his interest in several properties.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents and evidence presented at trial, Boston and LaBarge defrauded franchisees, investors, and lenders of their start-up company, Zloop. Through their fraud, the defendants obtained millions of dollars, much of which was spent on expensive personal real estate, a private plane, and the racing career of Boston’s son. Evidence at trial indicated that Boston caused Zloop to spend more money on his son’s racing career than the entire operational revenue of the company before it went bankrupt. According to evidence presented at trial, while inquiring about the potential purchase of a private island, Boston wrote, “My son is a NASCAR driver. I spend 5 Million a year so he can play race car driver.”
According to previously filed court documents, trial evidence and witness testimony, Boston and LaBarge founded Zloop, an electronic waste recycling firm, in 2012 and began marketing Zloop franchises the same year. Court records show that Boston concealed crucial information from franchisees, including that Boston’s former company had filed bankruptcy, that Boston had filed personal bankruptcy, that Boston had a judgment against him for fraud, and that Boston had been held liable in an action alleging that he had knowingly submitted false financial documentation to a bank to obtain a $2.9 million line of credit. When Boston was warned that, according to the company’s attorney, concealing this information from the franchisees of Zloop would be fraud, he wrote, “it is my decision how I want to move forward.”
Beginning on or about December 2012, Boston and LaBarge caused Zloop to raise money through the sale of equity. To sell equity in the company, Boston and LaBarge caused a misleading private placement memo (“PPM”) to be sent to investors who invested millions in Zloop. Evidence at trial demonstrated that the PPM contained material half-truths and omissions, including the omission of the litigation and bankruptcy history of Boston, that Zloop was planning to use the investors’ money to pay off a $4 million debt that it owed to a prior lender, and that Boston and LaBarge had already caused Zloop to spend more than $1.5 million on their personal real estate. Evidence at trial also indicated that the books and records of Zloop had been falsified to conceal the personal real estate expenses.
Evidence at trial also demonstrated that Boston promised investors that their money would be held until the offering closed, but he instead spent their money on the same day that much of it came in. When Zloop investors sought the return of their money in or about the middle of 2013, Zloop sought a loan from an individual identified as Victim 1. To do so, Boston repeatedly falsified emails to make the company look more attractive to Victim 1.
According to trial evidence, Boston induced Victim 1 to secure a $14 million line of credit from a bank. After Boston and LaBarge caused Zloop to draw approximately $3.5 million from that line of credit, they spent hundreds of thousands of dollars on, among other things, a private plane, a new Corvette, and a new Grand Cherokee. Zloop subsequently drew an additional $1.3 million from the credit card line, of which more than $500,000 was spent on racing-related expenditures and approximately $79,808 on a suite at a professional football stadium.
LaBarge pleaded guilty to conspiracy to commit wire fraud on November 2, 2017.
During the sentencings, Judge Conrad commented that Boston engaged in a “pattern and practice of deception over a long period of time involving a variety of financial instruments to take other peoples’ money and to use it for himself,” and that he was “motivated by greed and to promote a lavish lifestyle on the backs of others, all of whom deserved honest representations.” Boston’s “substantial” sentence, according to the Court, was necessary to deter others who may be tempted by greed. Judge Conrad also noted that although LaBarge “raised concerns” about Boston’s conduct, he squelched them, and said that LaBarge’s actions constituted a “velleity:” a desire not amounting to action.
The FBI led the investigation. Assistant U.S. Attorneys Taylor J. Phillips and Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, are in charge of the prosecution.
Fort Thompson Man Charged with Felon in PossessionRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for being a Felon in Possession of a Firearm.
Micah Brown, age 26, was indicted on September 11, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 20, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 1, 2018, Brown, who has been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess and receive a firearm, which had been shipped and transported in interstate and foreign commerce.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The charge is merely an accusation and Brown is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy Morley is prosecuting the case.
Brown was released on bond pending trial. A trial date has not been set.
Former Treasurer of the Crow Creek District Business Committee Appeared in Federal Court on Embezzlement ChargesRead the Press Release
United States Attorney Ron Parsons announced that a former treasurer of the Crow Creek District Business Committee appeared in federal court on September 27, 2018, in Pierre, South Dakota, and entered a guilty plea. Lana Steele, former treasurer of the Crow Creek District Business Committee, was charged with Embezzlement and Theft from an Indian Tribal Organization.
Lana Steele, age 52, of Chamberlain, South Dakota, appeared yesterday in federal court on the superseding information charging her with one count of embezzlement. The maximum term of imprisonment upon conviction is up to 1 year in federal prison, a $100,000 fine, 1 year of supervised release, and a special assessment of $25 to the Federal Crime Victims Fund. Restitution may also be ordered.
According to Steele’s plea agreement, between November 2013 and November 2015, she willfully and knowingly embezzled, misapplied, and converted to her own use monies, funds, credits, goods, assets, and other property belonging to the Crow Creek District Business Committee, an Indian Tribal Organization. Steele pleaded guilty to a federal misdemeanor and has agreed to pay restitution.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former Rite Aid Vice President Pleads Guilty in $5.7 Million Vendor Kick-Back SchemeRead the Press Release
HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that James W. Pilsner, age 60, of Harrisburg, Pennsylvania, former Vice President of Rite Aid, pleaded guilty today before United States District Court Judge John E. Jones, III, to vendor kick-back and tax evasion charges.
According to U.S. Attorney David J. Freed, Pilsner was charged in a criminal information filed on September 20, 2018, with one count of wire fraud and one count of federal income tax evasion. Pilsner, a former Vice President for Advertising for Rite Aid, engaged in a kick-back scheme with Larry Nuckols and Vance Taylor, the owners of Nuvision, Inc., an Atlanta, Georgia based company, between 1995 and August of 2017.
Pilsner entered into an agreement with Nuckols and Taylor whereby Pilsner would approve Nuvision’s invoices, some of which were false and inflated, for payment. In exchange, Nuckols and Taylor would “kick-back” a significant portion of Rite Aid’s payments to Pilsner.
Between 2001 and August of 2017, Rite Aid paid Nuvision approximately $45.3 million dollars. Pilsner allegedly received no less than $5,124,862 in kick-backs over that time period, with another $634,300 paid to other Rite Aid employees designated by Pilsner.
The criminal information also charged Pilsner with Income Tax Evasion for tax year 2013. In March of 2014, Pilsner filed an income tax return with the IRS that did not report his receipt of $411,500 in kick-back money during 2013, thereby avoiding approximately $157,648, in federal income taxes. The information also seeks the forfeiture of Pilsner’s interests in $5,743,162 and his Harrisburg residence.
Today Pilsner paid $300,000 towards his tax restitution obligation for the period 2013-2017 of approximately $592,000, and agreed to pay the balance at sentencing.
Nuckols’ initial appearance/arraignment and guilty plea is scheduled for November 20, 2018. Taylor was indicted on 40 counts of mail fraud, wire fraud, and money laundering on September 19, 2018, and is awaiting his initial appearance/arraignment on the charges.
The case is being investigated by the Harrisburg offices of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Kim Douglas Daniel is prosecuting the case.
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 Mail Fraud and Wire Fraud is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for Unlawful Monetary Transactions is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for Income Tax Evasion is 5 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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Former Miami-Dade County Resident Sentenced to over 12 Years in Prison for Attempted International Narcotics TraffickingRead the Press Release
On September 28, 2018, a former Miami-Dade County resident was sentenced to 12.5 years in prison for attempted international narcotics trafficking.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida; Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office; Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office; and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
Richard Senese, 39, formerly of Hialeah, previously pled guilty to attempting to import cocaine into the United States. U.S. District Court Judge Beth Bloom sentenced Senese to 151 months in prison, to be followed by 5 years of supervised release.
According to the court docket, including the agreed upon factual proffer, on March 18, 2018, Senese attempted to smuggle 95 kilograms of cocaine, by boat, from the Bahamas. Senese concealed the narcotics in the fuel tank of his vessel. As Senese was traveling from the Bahamas to the United States, as the sole occupant of his vessel, the boat became disabled. Air Marine units from the U.S. Customs and Border Protection intercepted Senese approximately 10 nautical miles east of Port Everglades and conducted an in-bound customs border search of the vessel.
Agents spoke with Senese, who claimed that he was returning from an overnight stay in the Bahamas. However, Senese could not remember the name of the hotel where he stayed. He also was unable to produce any documentation related to his stay or show that he had cleared Bahamian Customs. Senese claimed that during his trip he fished offshore of Bimini in the area of Great Isaac Light. Fish were present on board the vessel. During other portions of the interview, Senese provided evasive and inconsistent answers. As a result, agents referred the vessel to Port Everglades for a dockside secondary inspection.
Upon arrival at Port Everglades, Customs and Border Protection agents and members of the Broward County Sheriff’s Office conducted a secondary inspection of the vessel. During the inspection, a narcotics detection canine alerted to the odor of drugs. Law enforcement also noticed the fasteners holding the deck cover were loose and showed signs of recent tampering. Members of law enforcement removed the deck cover over the fuel tank area in the cockpit and discovered packages containing 95 kilograms of cocaine.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ICE-HSI, DEA, and BSO in this matter. Mrs. Fajardo Orshan thanked U.S. Customs and Border Protection for the agency’s assistance. This case was prosecuted by Assistant U.S. Attorney Mark Dispoto.Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former City of Wheeling employee admits to wire fraudRead the Press Release
WHEELING, WEST VIRGINIA – Teresa D. Hudrlik, of Valley Grove, West Virginia, has admitted to committing wire fraud while employed by the City of Wheeling, United States Attorney Bill Powell announced.
Hudrlik, age 48, pled guilty to one count of “Wire Fraud.” Hudrlik was the Human Resources Director for the City of Wheeling from April 2016 to March 2018. During her tenure with the City of Wheeling, she admitted to using a city-issued purchasing card to make personal purchases, without authorization. Hudrlik also admitted to altering receipts and documentation to disguise said purchases, giving herself payroll bonuses without authorization, and causing unauthorized payroll payments in the names of other city employees to be deposited into personal banking accounts Hudrlik controlled. The crimes occurred from June 2016 to March 2018 in Ohio County.
“We count on our public employees to operate as hardworking and honest public servants. The vast majority meet or exceed those expectations. Those who violate the sacred public trust must be discovered and prosecuted in accordance with the rule of law. This defendant will now be punished for her conduct. The City of Wheeling is to be commended for their cooperation in this matter,” said Powell.
The government is seeking a money judgement in the amount of $50,000. As a part of the plea agreement, Hudrlik has agreed to pay restitution to the City of Wheeling in the amount of $80,000.
“The City of Wheeling fully cooperated with the State Auditor, the Federal Bureau of Investigation and the U.S. Attorney’s Office to identify the matters raised in the Information and to hold this person accountable for orchestrating a very complex scheme. The discrepancies and concerns were found at one of the earliest possible junctures in the process of a routine audit. This was an administrator in a position of trust and the mechanics of the actions involved with these matters was quite sophisticated and not easily detectable. The immediate actions the City has taken to review policies and institute procedural safeguards regarding fiscal controls underscores the City’s commitment to protect taxpayer dollars and seek to assure the public that such activity was isolated to this particular employee. The City is aggressively pursuing full restitution of any fraudulent activity with regard to this matter. The City refers any additional questions to the U.S. Attorney’s Office for The Northern District of West Virginia,” said Robert Herron, City Manager, the City of Wheeling
Hudrlik faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The Federal Bureau of Investigation, the West Virginia State Auditor’s Office, and the West Virginia State Police investigated.
U.S. Magistrate Judge James P. Mazzone presided.
First Assistant U.S. Attorney Elizabeth A. Strange Announces Progress in Making Our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
ARIZONA - One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Throughout the past year, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
“Our goal is to make every community in Arizona a safer place to live and work,” stated First Assistant U.S. Attorney Elizabeth A. Strange. “From experience, we have learned that sustained success in combatting violent crime requires a comprehensive approach. Our Project Safe Neighborhoods program is a collaborative partnership with federal, tribal, and local law enforcement focused on reducing gun violence and committed to sustaining the success we have seen over the past year.”
As we celebrate the one-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:
Enforcement Actions
The United States Attorney’s Office for the District of Arizona (USAAZ) has developed partnerships with Federal, State, Local, and Tribal law enforcement, and State prosecutors, to ensure our efforts are focused against the most violent offenders.
- A partnership of Federal and local law enforcement agencies in the Phoenix metropolitan area reduced gun violence during the past year through the formation of the Crime Gun Intelligence Center (CGIC) and expanded reach of the National Integrated Ballistic Information Network (NIBIN). The CGIC was created through a partnership between the Phoenix Police Department (PPD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). USAAZ also partnered with ATF to expand the reach of NIBIN. The CGIC helps gather ballistic evidence from firearms crime scenes and enter shell casings into NIBIN within 72 hours of obtaining the evidence. The CGIC then provides investigative leads to detectives to help reduce violent crimes based on NIBIN matches.
- The CGIC program’s value in coordinating seemingly unrelated investigations by multiple agencies was dramatically demonstrated in the Dwight Jones serial shooter investigation, which involved extensive cooperation between local police and their Federal partners. Between May 31, 2018 and June 3, 2018, Dwight Jones killed six people in the greater Phoenix area. As soon as law enforcement realized the shootings were related, PPD, ATF, Scottsdale Police Department, the Federal Bureau of Investigation (FBI), and Maricopa County Sheriff’s Office (MCSO) worked together round-the-clock to determine the identity of the shooter. Through the collaborative use of CGIC, NIBIN, and DNA evidence, law enforcement officers were able to identify Jones as the primary suspect. On June 4, 2018, as police moved in to arrest Jones, he shot and killed himself. CGIC was instrumental in connecting and solving six murders, and prevented Dwight Jones from inflicting more violence on the community.
Community Partnerships
- USAAZ is part of the Governor’s Recidivism Reduction coalition, which is responsible for creating a statewide recidivism reduction plan. The Arizona Department of Corrections (ADC) received over $1 million in Department of Justice grants to implement a statewide recidivism reduction plan, and USAAZ is working with several ADC representatives to support the implementation of this statewide plan.
- USAAZ has partnered with various local, state, tribal, federal and non-government agencies to support statewide prevention, outreach, and reentry initiatives. USAAZ has facilitated several reentry simulations, which provide an opportunity for participants to assume the role of an ex-offender recently released from prison. The simulation suggests that, ultimately, the ability to navigate "the system" may be a primary factor in the relationship between resiliency and recidivism.
- USAAZ has worked with federal law enforcement to coordinate panels for local high schools and coordinated federal courthouse tours for the local law enforcement Explorers Program. The panels and tours educate students about federal law enforcement careers and the federal court system.
Improvements to Community Safety
- The FBI’s official crime data for 2017 reflects that after two consecutive years of historic increases in violent crime, the nationwide violent crime rate began to decline in the first year of the Trump Administration. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.
- The preliminary information we have for 2018 gives us reason for optimism that our efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
RELEASE NUMBER: 2018-125_PSN
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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.
FBI Impersonator Sentenced to 19 Years in Federal PrisonRead the Press Release
Gulfport, Miss. – Troy Graham, 35, of Louisiana, was sentenced today by U.S. District Judge Sul Ozerden to 229 months in prison, followed by 5 years of supervised release, for extortion, brandishing a firearm in furtherance of a robbery, and possession of a firearm by a felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF"). He was also ordered to pay $12,275 in restitution and a $10,000 fine.
Beginning in January 2017, Graham impersonated a federal agent and demanded drugs and money from a Kiln, Mississippi, marijuana dealer by threatening the dealer with false arrest warrants and imprisonment. Graham required the Kiln victim deliver money, marijuana, guns and other items as "forfeiture" to New Orleans to avoid arrest. Graham also forced the local dealer into contacting his source of supply in California and obtained $72,000 of marijuana. When the California dealer arrived in Hancock County to collect his money, Graham held the dealer at gunpoint demanding money and to know his source of supply. The extortion and robberies were reported to the ATF, who set up a sting operation. While Graham pressed the local dealer for more sources and what he called "forfeiture," ATF posed as a marijuana source from Colorado. ATF arrested Graham in a D’Iberville parking lot when he showed up with a loaded gun to rob the alleged Colorado dealer.
On March 16, 2018, Graham entered guilty pleas to extortion, brandishing a firearm in furtherance of a robbery, and possession of a firearm by a felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Annette Williams.
Essex Man Sentenced to 17 Years in Federal Prison for Sexual Exploitation of a Child to Produce Child Pornography and Related ChargesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Roy David Evans, Jr., age 34, of Essex, Maryland, today to 17 years in prison, followed by lifetime supervised release, on charges of sexual exploitation of a minor to produce child pornography, possession of child pornography, and receipt of child pornography. Judge Xinis also ordered that upon his release from prison, Evans is required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
“Roy Evans took advantage of anonymous Internet messaging services to encourage minors to send him sexually explicit images of themselves,” said U.S. Attorney Robert K. Hur. “This lengthy sentence should send a powerful message that sexual exploitation of children to produce child pornography will not be tolerated in Maryland.”
“With ever increasing access to communication platforms, we must continue to stay a step ahead of those who exploit technology to facilitate the worst crimes in modern society,” said Cardell T. Morant, Acting Special Agent in Charge, HSI Baltimore. “Today’s announcement serves as a significant marker in our fight against these heinous criminals, and I proudly commend the investigators bringing such criminals to justice.”
According to Evans’ plea agreement and evidence presented at today’s sentencing hearing, Evans posted advertisements on Craigslist for “young models” and encouraged girls to contact him via e-mail or via Kik, a social messaging application where users can text, livestream, and send digital images and videos to one another. Evans admitted that he enticed and coerced three minor victims to engage in sexually explicit conduct in order to produce images of that conduct. Evans received sexually explicit images and videos of the victims via Kik. Evans sent at least three of those images and videos to himself through the Internet. Evans further admitted that he traveled to Montgomery County, Maryland in order to engage in sexual conduct with a 14-year-old victim. Evans admitted that he solicited at least two other minors to create and send sexually explicit images and videos of themselves after they had responded to his advertisements.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI Baltimore and the Montgomery County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Kelly O'Connell Hayes and Timothy Hagan, who prosecuted the federal case.
Erie Man Sentenced to Prison, Ordered to Pay Restitution for Food Stamp Fraud SchemeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 15 months in jail and ordered to make $225,000 in restitution on his conviction of conspiracy to defraud the United States, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Jibul R. Jibul, 30.
According to information presented to the court, Jibul and two-defendants were all engaged in food stamp fraud primarily involving exchanging food stamps for cash. Jibul and his co-defendants also used the food stamp terminals at locations where they were not authorized.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Department of Agriculture, Office of Inspector General, the Erie Police Department, the Department of Homeland Security Investigations and the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Jibul.
Erie Gang Member Sentenced to Prison for Selling Crack CocaineRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 26 months in federal prison on his conviction of violating federal drug laws, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Paris Xavier Boyd, 29.
According to information presented to the court, the FBI’s Erie Area Gang Law Enforcement (EAGLE), Safe Streets task force conducted an investigation into the drug dealing and violent crime activity of members of a local gang identifying itself as "1800". The court was advised that court authorized intercepts of telephone communications between members of the group and others revealed Boyd selling crack cocaine in the Erie area. The court was advised that Boyd took over the role as the crack cocaine distributor when another member of the group was arrested after shooting at rival gang members in Erie. Boyd pleaded guilty to conspiring with his co-defendants to possess with intent to distribute and distribute the crack cocaine.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
United States Attorney Brady commended the EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, Bureau of Narcotics Investigation and the Erie Police Department for the investigation leading to the successful prosecution of Boyd. The Erie County District Attorney’s County Detectives Bureau also assisted in the investigation.
Elon Man Sentenced to 10 Years in Prison, Elon Woman Sentenced to 5 Years Probation for Drug Trafficking Conspiracy Involving Brunswick CountyRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, Senior United States District Judge W. Earl Britt sentenced DEONTE XAVIER BIGELOW, 27, of Elon, North Carolina, to 120 months in prison, followed by 5 years of supervised release, and sentenced COURTNAE SHANTE WILEY, 28, of Elon, North Carolina, to 5 years of probation.
BIGELOW and WILEY were charged by Indictment with conspiring to distribute and possess with intent to distribute cocaine (Count One) and possession with intent to distribute five hundred grams or more of cocaine (Count Two).
In 2017, the Brunswick County Sheriff’s Office received information that BIGELOW had supplied more than twenty kilograms of cocaine to Brunswick County, North Carolina from 2011 to 2016.
On November 7, 2017, officers used a confidential informant to order one kilogram of cocaine from BIGELOW, who said he would deliver it to Brunswick County.
On November 8, 2017, BIGELOW and his girlfriend, COURTNAE WILEY, drove from Elon, North Carolina to Brunswick County, where officers conducted a traffic stop of their vehicle. Officers asked where they were going, and WILEY said they were going to the beach. Officers noted, however, that there was no luggage in the car. A drug canine alerted to the car, indicating that drugs were present. Officers conducted a search of the car and found a kilogram of cocaine--with a street value of more than $30,000--in WILEY’s purse.
This case was brought by the United States Attorney’s Office through partnerships with the Brunswick County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Scott A. Lemmon.
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Assault by Striking, Beating, and Wounding, was sentenced on September 27, 2018, by U.S. Magistrate Judge Mark A. Moreno.
Nathaniel Potter, age 23, was sentenced to 12 months in federal prison, followed by 1 year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Potter was indicted by a federal grand jury on November 14, 2017. He pled guilty on June 27, 2018.
The conviction stemmed from an incident on September 8, 2017, when Potter and a few other individuals were drinking and Potter became involved in a verbal argument with one of the individuals. The disagreement turned physical and Potter pulled out a knife and stabbed the individual 3 times to his left side.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Potter was immediately turned over to the custody of the U.S. Marshals Service.
DuBois Child Pornography Possessor Sentenced to 10 Years in Federal PrisonRead the Press Release
JOHNSTOWN, Pa. – A Clearfield County resident has been sentenced in federal court to 120 months in prison and 10 years’ supervised release on his conviction of possession of child pornography, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Glenn Bailey, 60, of DuBois, Pa.
According to information presented to the court, on July 25, 2013, Bailey knowingly possessed videos and images as computer graphic files containing images of child pornography, including images which depict prepubescent minors and minors who have not attained twelve years of age, which had been shipped and transported in interstate or foreign commerce by means of a computer.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the U.S. Immigration and Customs Enforcement/Department of Homeland Security Investigations for the investigation that led to the successful prosecution of Bailey.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
District of New Jersey Announces Progress in Making Communities Safer Through ‘Project Safe Neighborhoods’Read the Press Release
NEWARK, N.J. – One year ago, the U.S. Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Jeff Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and re-entry programs for lasting reductions in crime.
In line with the Justice Department’s priority to combat violent crime, the District of New Jersey designated three cities – Newark, Camden and Jersey City – as its Project Safe Neighborhoods target areas. In the one year since the Department announced its relaunching of the PSN program it has already shown measurable progress in the prosecution and deterrence of violent criminals in these communities.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
To implement the goals of PSN and combat violent crime in Newark, the Violent Crime Initiative (VCI) was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the City of Newark’s Department of Public Safety and the Essex County Prosecutor’s Office. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to investigate and prosecute violent offenders who endanger the safety of the community. The VCI includes the U.S. Attorney’s Office, the FBI, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshal’s Office, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the N.J. State Parole Board, the Union County Jail, the N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, the N.J. Department of Corrections, the East Orange Police Department and the Irvington Police Department.
“The cases described below illustrate just how effective law enforcement can be when federal, state, and local partners all work together and focus their resources on the most serious violent offenders,” U.S. Attorney Craig Carpenito said. “Our joint efforts are reducing violent crime in the communities most affected by it. Street by street, neighborhood by neighborhood, we are making those areas safer.”
“Our valued partnership with each member of the Violent Crime Initiative strengthens our unwavering commitment to rid our streets of illegal weapons and narcotics throughout the City of Newark,” Newark Department of Public Safety Director Anthony Ambrose said. “We are pleased that the U.S. Attorney Jeff Sessions has spearheaded the Project Safe Neighborhoods initiative, along with U.S. Attorney for the District of New Jersey Craig Carpenito, to ensure that the people of Newark, Jersey City and Camden enjoy safety and the improved quality of life they deserve through this ongoing, targeted reduction of violent crime on our streets.”
According to documents filed in court over the past year, the investigations implemented as part of Newark’s VCI have yielded the following results:
Between March and September 2018, 28 alleged members of a drug trafficking organization that dealt kilogram-quantities of heroin in and around Newark, specifically the area near Hayes Street and 14th Avenue, were charged federally with narcotics and firearms offenses. The organization is composed of members of the Brick City Brims set of the Bloods street gang, many of whom have perpetrated violence against, and been the targets of violence by, rivals in connection with their narcotics trafficking and gang activities. As part of this ongoing investigation, at least six firearms have been seized.
In September 2018, six alleged members of a drug trafficking organization led by Andre Mims were prosecuted federally for distributing heroin throughout Newark, including to customers who traveled from all over New Jersey and even as far as Florida. Two defendants are also charged with firearms offenses. At least an additional 15 defendants tied to the organization are being prosecuted by the Essex County Prosecutor’s Office. As part of the collaborative efforts by federal, state and local law enforcement agencies, two firearms were seized in connection with the investigation.
During the past year, at least 15 additional violent offenders and gang members have been prosecuted as part of Newark’s Violent Crime Initiative, and additional arrests are anticipated. Overall, crime is down 12 percent in Newark since last year, but there has been a far greater decrease in violent crime, with 74 fewer shooting victims and 45 fewer shooting incidents during that time.
Meanwhile, PSN efforts to combat violent crime in Camden have been underway for years through the Camden Collaborative Crime Commission (C4), a federal, state, and local partnership of law enforcement officers, analysts, and prosecutors. C4 partners meet every morning to share intelligence and collaborate to effectively target and reduce violence by focusing prosecutorial efforts on violent and/or substantial drug trafficking organizations. As part of these efforts, there has been a continued emphasis on firearms prosecutions and enforcement actions targeting open-air drug markets in the city. In March 2018, six defendants were charged federally with drug charges and one defendant with firearms charges for their role in the distribution of furanyl fentanyl, heroin, and crack cocaine in the City of Camden. In addition to the six charged defendants, five additional defendants have pled guilty to their roles in this drug trafficking organization. The dismantling of this drug distribution network is just one example of how the partnerships forged at C4 are yielding tangible results combatting violent crime and drug trafficking in Camden. These efforts have resulted in a significant decrease in violent crime in Camden, with 21 fewer shooting victims and 25 fewer shooting incidents than last year.
Although a Violent Crime Initiative is in its infancy in Jersey City, over the course of the past year, the USAO has prosecuted 19 firearms cases and numerous narcotics trafficking cases in an effort to thwart violence and gang activity in Jersey City. During that time, Jersey City has experienced a 30 percent reduction in shooting victims and 24 percent reduction in shooting incidents over the past year.
Federal efforts to combat violent crime are not just limited to the three designated PSN target areas. Throughout the District of New Jersey, the prosecution of firearms offenses has increased by over 130 percent this year alone. Over the past year, the State of New Jersey has experienced a 23 percent reduction in shooting victims and a 27 percent reduction in shooting incidents.
District Man Pleads Guilty to Killing Man in Northwest WashingtonRead the Press Release
WASHINGTON – Alton Rivers, 54, of Washington, D.C., has pled guilty to a charge of voluntary manslaughter for fatally stabbing a man with a screwdriver during a fight in Northwest Washington last summer, U.S. Attorney Jessie K. Liu announced today.
Rivers pled guilty on Sept. 28, 2018, in the Superior Court of the District of Columbia. The Honorable Judith Bartnoff scheduled sentencing for Dec. 14, 2018.
According to the government’s evidence, on Friday, July 27, 2018, at about 4:30 p.m., an off-duty officer with the Metropolitan Police Department (MPD) observed two men fighting in the middle of the street in the intersection of 14th Street and Perry Place NW. One of the men – later identified as Rivers - was seen holding a weapon, and the other was swinging his fists. The officer confronted both men, announced that he was a police officer, and ordered them to stop fighting. Seconds later, the man who had been swinging his fists fell to the ground, with blood coming from his mouth. Rivers was then ordered repeatedly to drop his weapon, a bloody screwdriver. He finally complied and was arrested.
The second man was identified as Anthony Anderson, 68. All life-saving efforts failed and Mr. Anderson died from two stab wounds to the chest, one of which punctured his chest and aorta. Rivers has been in custody since his arrest.
A witness reported seeing the two men prior to the stabbing, fighting with their firsts. At one point, according to the witness, Mr. Anderson punched Rivers, who fell to the ground. Rivers then got up, this witness stated, and pulled out the screwdriver and stabbed Mr. Anderson.
In announcing the plea, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Marcia Rinker and Assistant U.S. Attorney Ahmed Baset, who investigated and prosecuted the case.
Department of Justice Is Awarding Almost $320 Million to Combat Opioid CrisisRead the Press Release
United States Attorney Trent Shores joined with the Department of Justice today in announcing that Oklahoma will receive $4,882,317 in the continued effort to fight the opioid epidemic.
On the first day of National Substance Abuse Prevention Month, the Department of Justice announced it is awarding almost $320 million to combat the opioid crisis in America, including the more than $4.8 million awarded in Oklahoma. The unprecedented funding will directly help those most impacted by the deadliest drug crisis in American history, including crime victims, children, families, and first responders.
The following groups in Oklahoma have been awarded grant funding.
- Oklahoma Bureau of Narcotics and Dangerous Drugs Control- $750,000
-prescription drug monitoring programs
- Muscogee (Creek) Nation- $943,08
-public safety, behavior health, and public health information sharing partnerships
- Legal Aid Services of Oklahoma, Inc.- $750,000
-Programs to help youth impacted by the opioid crisis
- Cleveland County- Adult Drug Court- $250,000
- Cleveland County- Veterans Drug Court- $300,000
- Oklahoma Dept. of Mental Health & Substance Abuse Services- $889,229
-Enhancement of Existing Family Drug Courts
- Oklahoma Dept. of Mental Health & Substance Abuse Services- $1,000,000
-Family Drug Courts Research and Evaluation Program
"President Trump has made ending the opioid crisis a priority for this administration, and under his leadership, the Department of Justice has taken historic action," said Attorney General Jeff Sessions. "Today we are announcing our next steps: investing $320 million into all three parts of the President’s comprehensive plan to end the epidemic: prevention, treatment, and enforcement. We are attacking this crisis from every angle—and we will not let up until we bring it to an end."
U.S. Attorney Trent Shores stated, “Opioid addiction inflicts tragic, life-altering consequences upon those individuals ensnared by its relentless hold on their lives. It also destroys relationships and harms family bonds. We must keep fighting for those addicted to opioids. And we must - as a community - be relentless in our efforts to help stop this epidemic. Today, I am pleased to announce that the Department of Justice will be administering vital resources to our local, state, and tribal partners in northeastern Oklahoma to aid them in their battle against opioids. One more opioid victim is too many.”
In 2017, more than 72,000 Americans lost their lives to drug overdoses, an increase from the 64,000 overdose deaths in 2016, according to the Centers for Disease Control and Prevention. The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues. October marks two important anti-drug events: Red Ribbon Week and National Prescription Drug Takeback Day. Red Ribbon Week takes place every year between October 23-31 and encourages students, parents, schools, and communities to promote drug-free lifestyles. The Drug Enforcement Administration’s (DEA) National Prescription Drug Take Back Day on October 27 aims to provide an opportunity for Americans to prevent overdose deaths and drug addictions before they start. DOJ expanded on DEA's Drug Takeback Days and collected more than 2.7 million pounds of expired or unused prescription drugs since April 2017.
The Attorney General has been resolute in the fight against the drug crisis in America. The Department assigned more than 300 federal prosecutors to U.S. Attorneys’ offices and hired more than 400 DEA task force officers, announced the formation of Operation Synthetic Opioid Surge, a new program to reduce the supply of deadly synthetic opioids in high impact areas, and created a new data analytics program called the Opioid Fraud and Abuse Detection Unit to assist 12 prosecutors sent to drug “hot spot districts.” In addition, the Department charged more than 3,000 defendants with trafficking in heroin, fentanyl, or prescription drugs in FY 2017, announced the first-ever indictments of Chinese nationals for fentanyl trafficking, and scheduled variants of fentanyl to prevent illicit drug labs from circumventing the law. In addition, DOJ executed the largest ever health care fraud enforcement action charging more than 600 defendants and proposed rules consistent with President Trump's "Safe Prescribing Plan," requiring a reduction of ten percent in 2019 in manufacturing quotas. The Department dismantled AlphaBay, the largest criminal marketplace on the Internet and has already generated prosecutions in the fight against online drug trafficking through the Joint Criminal Opioid Darknet Enforcement Team (J-CODE).
The approximately $320 million awarded by the Department’s Office of Justice Programs (OJP) will be distributed in order to maximize effectiveness over the country. A breakdown of the grant funding can be found here.
- Innovative Prosecution Solutions for Combating Violent Crime and Opioid Abuse ($2.8 Million)
- Help prosecutors develop strategies to address violent crime caused by illegal opioid distribution and abuse
- Comprehensive Opioid Abuse Site-based Program ($162 Million)
- Help jurisdictions plan and implement programs aimed at reducing opioid abuse and mitigating its impact on crime victims, including training and technical assistance
- Justice and Mental Health Collaboration Program ($5.9 Million)
- Address the treatment needs of people using opioids under the Justice and Mental Health Collaboration Program
- Helping Children and Youth Impacted by Opioids ($46.6 Million)
- Help children and youth impacted by the opioid crisis, including training and technical assistance
- Drug Courts ($81.2 Million)
- Assist adult, juvenile, and family drug courts and veterans treatment courts, including training and technical assistance
- Paul Coverdell Forensic Science Improvement Grant Program ($17 Million)
- Address the dramatic increase in deaths and the backlogs of seized drugs as a result of the opioid crisis
- Opioid-Related Research for Criminal Justice Purposes ($4.1 Million)
- Development of new tools to enforce the law, ensure public safety, prevent and control crime, and ensure fair and impartial administration of justice
OJP provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at: www.ojp.gov.
Defendant in Swatting Case Appears in Federal CourtRead the Press Release
WICHITA, KAN. – Tyler Barriss, 25, Los Angeles, Calif., was arraigned in federal court in Wichita today on a superseding indictment charging him in connection with a Dec. 28, 2017, swatting incident in Wichita, U.S. Attorney Stephen McAllister said.
Barriss, who is being held on state charges in Sedgwick County District Court, including involuntary manslaughter, waived his right to a hearing on whether he could be released while awaiting trial on the federal charges. Trial in the state case is set for Jan. 7. Barriss is accused of making a hoax call to Wichita police. In the resulting confusion, police shot and killed 28-year-old Andrew Finch.
A superseding indictment filed in federal court charges Barriss with making false/hoax reports to emergency services, cyberstalking, making interstate threats, making interstate threats to harm by fire, wire fraud and conspiracy to make false/hoax reports. Also charged in the superseding indictment are co-defendants Casey Viner, 18, North College Hill, Ohio, and Shane Gaskill, 20, Wichita Kan.
Currently, the three defendants are scheduled for trial on the federal charges Nov. 6 before U.S. District Judge Eric Melgren, but the date is likely to change.
The FBI, the Sedgwick County Sheriff’s Office and the Wichita Police Department investigated. U.S. Attorney Stephen McAllister is prosecuting along with Assistant U.S. Attorney Debra Barnett.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Darien Center Man Charged with Receiving Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Alexander Seegar, 29, of Darien Center, NY, was arrested and charged by criminal complaint with receipt and possession of child pornography. The charges carry a minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that according to the complaint, Seegar posed as a 16 or 17 year old boy and sexted 10-12 year old female students in a school in Niagara County. The defendant used the Instagram profile “davidlissachi” to communicate with the girls and ask them for sexually explicit photos. The complaint also states that Seegar was found in possession of numerous photos containing child pornography.
The defendant made an initial appearance today before U.S. Magistrate Michael J. Roemer and was held pending a detention hearing on October 5, 2018.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in Charge Gary Loeffert, and the Lewiston Police Department, under the direction of Chief Frank Previte.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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DOJ Targets more than $5.6 Million to Address Opioid Addiction in Washington StateRead the Press Release
The Department of Justice is awarding more than $5.6 million to agencies in the State of Washington to address the opioid epidemic through increased treatment, prescription monitoring, emergency services and drug courts, announced U.S. Attorney Annette L. Hayes. The two largest grants – a total of $1.7 million will fund efforts by the state Department of Health to link prescription monitoring data with various public health databases to help medical professionals and others make data-informed decisions on treatment and prevention of prescription drug abuse.
“From large cities to rural areas and tribal communities, the Department of Justice is dedicating resources to support local efforts to combat opioid abuse,” said U.S. Attorney Annette L. Hayes. “These funds support a range of services including drug treatment, prescription monitoring, overdose mitigation and housing support which in turn will reduce demand for opioids and the terrible damage from addiction.”
The Seattle Police Department in partnership with the Department of Corrections is receiving a $900,000 grant to provide treatment services to those in custody or re-entering society after prison. Services include counseling and stable housing to prevent a return to prison. With a $498,180 grant, the North Mason Regional Fire Authority in Belfair, Washington will partner with Peninsula Community Health Services to establish a Quick Response Team. The team composed of first responders and law enforcement works to reduce opioid abuse and overdose fatalities. The Makah Indian Tribe received a $458,285 grant to establish a team approach to provide services as an alternative path to cycling in and out of the judicial system. Finally, the Puyallup Tribe will receive $875,048 to provide community reentry services such as treatment and vouchers for housing, and transportation for those reentering the community from prison or from inpatient treatment.
Two drug courts received funding. The City of Lakewood received $550,000 for a drug court focused on the needs of veterans. Clark County received a $399,074 grant for its juvenile drug court program focusing on youth with substance abuse disorder.
The Washington State Patrol received a $250,000 grant for its crime lab program designed to reduce the backlog of cases waiting for toxicology and forensic testing. Laboratories have been overwhelmed with drug seizure testing requests as well as analysis related to opiate related deaths.
The Comprehensive Addiction and Recovery Act (CARA) Program is the first major federal substance use disorder treatment and recovery legislation in 40 years and the most comprehensive effort to address the opioid epidemic. CARA establishes a comprehensive, coordinated, and balanced strategy through enhanced grant programs that expand prevention and education efforts while also promoting treatment and recovery. The Comprehensive Opioid Abuse Site-based program was developed as part of the CARA legislation signed into law on July 22, 2016.
Connecticut Man Sentenced to 96 Months for Robbing Dollar Tree StoresRead the Press Release
ALBANY, NEW YORK – David Daniel Hunter, 54, of Enfield, Connecticut, was sentenced today to 96 months in prison for robbing two Dollar Tree stores—one in the Town of North Greenbush, New York, and the other in Coeur d’Alene, Idaho—in May 2017.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Senior United States District Judge Fredrick J. Scullin, Jr. also imposed a 3-year term of supervised release, which will begin after Hunter’s release from prison, and ordered Hunter to pay $25,450.61 in restitution and to forfeit $1,200.
In pleading guilty, Hunter admitted to stealing a 2017 Dodge Charger in Connecticut on May 5, 2017 and driving it to New York to commit robberies. On May 6, 2017, Hunter entered the Dollar Tree store in North Greenbush, New York, brandishing what appeared to be a handgun, and demanded money. After taking $1,200.00 from the store’s safe and cash registers, Hunter directed the clerks to the store’s stock room, took one clerk’s cellphone, and left the store. Hunter later travelled to Idaho, where he entered a Dollar Tree store in Coeur d’Alene on May 28, 2017, displayed a Taser, and demanded money. After stealing approximately $3,700.00, Hunter took a clerk’s cellphone and fled.
As part of a robbery spree that lasted more than a month, Hunter also robbed Dollar Tree and Dollar General stores in Adrian, Michigan, Manitowoc, Wisconsin, Lincoln, Nebraska, American Fork, Utah, Cheyenne, Wyoming, Wilkes Barre, Pennsylvania, and North Haven, Connecticut.
This case was investigated by the Federal Bureau of Investigation (FBI), the North Greenbush (New York) Police Department, and the Enfield (Connecticut) Police Department, and was prosecuted by Assistant United States Attorney Cyrus P.W. Rieck. The Idaho robbery was initially prosecuted by Assistant United States Attorney Traci Whelan of the U.S. Attorney’s Office for the District of Idaho, and then transferred to the Northern District of New York.
Child Sex Offender Sentenced for Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jason Bonds, 43, of Ascutney, Vermont, was sentenced on October 1, 2018, in United States District Court in Burlington, Vermont, to serve 45 months in prison after his guilty plea to one count of possession of child pornography. U.S. District Judge William K. Sessions III also ordered Bonds to serve a five (5) year term of supervised release, and to pay a $100 special assessment.
According to court records and proceedings, in 2016 Google discovered images of child pornography on its platform. Google transmitted a “Cybertip” to the National Center for Missing and Exploited Children, which forwarded the tip to the Vermont Internet Crimes Against Children Task Force (the ICAC). The ICAC investigated the tip and ultimately obtained a warrant to search Bonds’ former residence in Ascutney, Vermont. Upon learning that Bonds no longer resided there, law enforcement went to his new residence in Westminster, Vermont. In an interview with investigators, Bonds disclosed that he had viewed child pornography on his laptop computer, which he surrendered to investigators. During a forensic examination of Bonds’ computer, law enforcement found approximately 1,300 images and videos depicting child pornography. Some of the images were of children ranging in age from infant to age six (6), and depicted sadistic and masochistic conduct. Law enforcement also found evidence that Bonds went to chat rooms on the Internet where he chatted with whom he believed were 12 and 13-year old children.
During the investigation of the child pornography allegations, a prepubescent girl whom Bonds knew claimed that he sexually assaulted her. On May 22, 2018, Bonds pleaded guilty to lewd and lascivious conduct involving that child in Vermont state court. He is expected to be sentenced on the state charges on October 2, 2018. Bonds’ guilty plea to these charges in state court was a condition of his federal plea agreement.
United States Attorney Christina E. Nolan commended the efforts of the Vermont Internet Crimes Against Children Task Force, Homeland Security Investigations, and the Brattleboro Police Department in the investigation and prosecution of Bonds. The prosecution of Bonds was handled by Assistant U.S. Attorney Barbara A. Masterson. Bonds was represented by Assistant Federal Public Defender Steven L. Barth.
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Captain of Prominent Tourist Sailing Ship Sentenced to Prison for Illegally Claiming DisabilityRead the Press Release
The Captain of a Seattle tourist sailboat was sentenced today in U.S. District Court in Seattle to 9 months in prison, two years of supervised release, a $5,500 fine and $324,738 in restitution and civil penalty, announced U.S. Attorney Annette L. Hayes. PAUL D. LAMARCHE, 67, pleaded guilty to wire fraud and theft of government property in March 2018, admitting he collected more than $177,000 in disability payments from the Railroad Retirement Board while operating Emerald City Charters – a tourist attraction running sailing ships on the Seattle waterfront. At the sentencing hearing U.S. District Judge James L. Robart said LAMARCHE was “…stealing from the government and lying about it…. He’s obviously made a lot of money, but he’s stealing every year… He’s a thief.”
According to records filed in the case, in June 1988, LAMARCHE claimed he could no longer work as a Burlington Northern Brakeman/Conductor due to a back injury. In August 1993, he began receiving a disability annuity from the Railroad Retirement Board. In connection with those payments, he certified annually that his medical condition had not improved, that he was unable to work and had limited earnings. In fact, from 1984 to the present, LAMARCHE owned and operated Emerald City Charters, which operates two large sea-going sailboats on Elliott Bay. While claiming disability, LAMARCHE submitted multiple forms to the U.S. Coast Guard certifying that he had no impairments that limit his physical activities or ability to pilot the sailboats.
On multiple occasions in various settings, LAMARCHE appeared in promotional videos actively sailing the boats. He made statements that he had missed “only a couple days of work in 23 years,” and he appeared in a television feature story doing yoga on a stand-up paddleboard. Even as the Railroad Board began investigating his disability claim in 2015, he continued to submit false reports claiming he was not able to “lift, pull or carry heavy items” was “unable to run or jump,” and had “debilitating headaches daily.” He now admits all those statements were false.
In addition to the $177,369 in restitution, LAMARCHE agreed to pay an additional $177,369 as a civil penalty for violating the False Claims Act. The U.S. Coast Guard has a pending action to address LAMARCHE’s Captain’s license. LAMARCHE was ordered to report to prison October 2, 2018.
The case was investigated by Special Agents of the Railroad Retirement Board Office of Inspector General (RRB-OIG) and U.S. Coast Guard Investigative Service.
The case was prosecuted by Assistant United States Attorney Stephen Hobbs and the civil investigation and settlement were handled by Assistant United States Attorney Kayla Stahman and Investigator Judy Swem.
California Man Sentenced to More Than 14 Years in Prison for Kidnapping Lyft DriverRead the Press Release
WASHINGTON – Shane Browne, 28, formerly of Beverly Hills, Calif., has been sentenced to a prison term of 14 years and eight months on charges stemming from the kidnapping of a Lyft driver last December, announced U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Browne was found guilty by a jury in April 2018 of charges of kidnapping and possession with intent to distribute marijuana. The verdict followed a trial in the U.S. District Court for the District of Columbia. He was sentenced on Sept. 28, 2018, by the Honorable Trevor N. McFadden. Following his prison term, Browne will be placed on five years of supervised release. The Court also ordered a civil forfeiture in the amount of $70,200 in connection with the marijuana that was seized in the case, as well as the forfeiture of approximately $35,000 in cash that was seized at an apartment where Browne had been staying in the District of Columbia.
At trial, the government’s evidence showed that on Dec. 11, 2017, Browne requested a ride using the Lyft smartphone application and ride-sharing service. The Lyft driver picked Browne up at approximately 3:20 p.m. at the Calvert House Apartments, in the 2400 block of Calvert Street NW. The driver drove Browne about 72 miles to a Red Roof Inn in Aberdeen, Md.
After arriving in Aberdeen at approximately 5:20 p.m., the two parted ways at a nearby McDonald’s restaurant, with the Lyft driver having grown suspicious of Browne and indicating that he would not provide a round trip. Within approximately 30 minutes, Browne returned to the Lyft vehicle with a suitcase that he did not have at the start of the trip. Browne placed the suitcase in the trunk, and requested a return trip, which the driver refused to provide.
Ultimately, Browne entered the Lyft vehicle and yet again requested a return trip, which the driver once again refused to provide. At this point, according to the government’s evidence, Browne took out a firearm, held it to the driver’s head, and ordered him to drive them back to the Calvert House Apartments. The driver then drove Browne and his suitcase to the Calvert House Apartments. Along the way, and as confirmed by Lyft business records, the driver managed to send an e-mail to Lyft that read, “Call the police I’m on [sic] trouble.”
At about 7:30 p.m., they arrived at the apartment building. Browne exited the vehicle and took his suitcase and entered the building. The driver, meanwhile, contacted OnStar and was subsequently referred to 911. MPD officers responded to the area at approximately 8:05 p.m. The officers monitored the building and ultimately detained Browne as he left a unit.
The following day, a search warrant was executed at the apartment, and law enforcement recovered approximately 78 pounds of marijuana in suitcases similar to the one that Browne had placed in the Lyft driver’s car, approximately $35,000 in cash, a cash-counting machine and other items. No firearm was recovered in the search.
Browne has been in custody since his arrest on Dec. 11, 2017.
In announcing the sentence, U.S. Attorney Liu, Assistant Director McNamara, and Chief Newsham commended the work of those who investigated the case from the FBI’s Violent Crimes Task Force, which includes MPD detectives, and the MPD officers who responded to the scene. They also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences, the FBI’s Baltimore Division, the FBI Operational Technology Division, and the Harford County, Md. Sheriff’s Department.
They also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Chrisellen Kolb, Deputy Chief of the Appellate Division; Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section; Assistant U.S. Attorney Christopher Brown; Special Assistant U.S. Attorney Parker Tobin; Paralegal Specialists Candace Battle, Jeanette Litz, Catherine O’Neal, Kim Hall, and Teesha Tobias; Supervisory Paralegal Specialist Mary Downing; Legal Assistants Latoya Wade, Peter Gaboton, and Katie Cowley; Litigation Technology Specialist Claudia Gutierrez; Criminal Investigator John Marsh; Sarah McClellan, Chief of the Victim Witness Assistance Unit, and Victim/Witness Advocate Yvonne Bryant. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Sara Vanore and Stephen J. Gripkey, who indicted and tried the case.
California Man Facing Federal Drug Trafficking Charge Arising out of DEA Seizure of 46 Pounds of Fentanyl in New MexicoRead the Press Release
ALBUQUERQUE – A U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Alfred Galaviz, 54, of Calexico, Calif., with a fentanyl trafficking offense. The charge arises from a DEA seizure of approximately 45.92 pounds of fentanyl in Albuquerque on Sept. 27, 2018. Galaviz was remanded into custody pending trial, which has yet to be scheduled.
The DEA arrested Galaviz on Sept. 27, 2018, after seizing approximately 20.5 kilograms (45.92 pounds) of fentanyl from Galaviz’s luggage during an interdiction investigation in Albuquerque.
The penalty for a conviction on the offense charged in the criminal complaint is a statutory minimum penalty of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the DEA and Assistant U.S. Attorney Paul Schied is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Boynton Beach Resident Sentenced to 27 Years in Prison for Producing and Possessing Child PornographyRead the Press Release
On September 28, 2018, a Boynton Beach resident was sentenced to 27 years in prison after having been convicted at trial of producing and possessing child pornography.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, David Aronberg, State Attorney for Palm Beach County, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation, (FBI), Miami Field Office, and Michael Gregory, Chief, Boynton Beach Police Department, made the announcement.
Tommy R. Findley, 56, of Boynton Beach, Florida, was convicted by a trial jury in July of one count of production of child pornography, in violation of Title 18, United States Code, Section 2251(a) and (e) and one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B). U.S. District Court Judge Robin L. Rosenberg sentenced Findley to 324 months in prison, to be followed by a lifetime of supervised release. Judge Rosenberg also ordered Findley to register as a sex offender.
According to evidence and testimony presented at trial, while executing a search warrant at Findley’s residence, the Boynton Beach Police Department uncovered images and videos of child pornography. Located under Findley’s waterbed mattress and in a compartment of the trunk of his SUV, were concealed digital devices. These devices contained sexually explicit images and videos that Findley produced of a 16 year old.
U.S. Attorney Fajardo Orshan commended the investigation efforts of the FBI and the Boynton Beach Police Department in this matter. Mrs. Fajardo Orshan thanked Palm Beach County State Attorney Dave Aronberg for the 15th Judicial Circuit and his staff for their assistance. This case was prosecuted by Special Assistant United States Attorney Justin Hoover and Assistant United States Attorney Gregory Schiller.
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 on http://pacer.flsd.uscourts.gov
Barberton man with history of drug convictions sentenced to 10 years in prison for firearms crimesRead the Press Release
A Barberton man with a history of drug convictions was sentenced to 10 years in prison for firearms crimes.
Sergio Watson, 27, was sentenced to 10 years in prison by U.S. District Judge John Adams. Watson was previously found guilty of being a felon in possession of firearms and ammunition.
Watson on April 19 possessed four pistols loaded with ammunition: a Springfield Armory XD 40 .40 caliber pistol, a stolen Smith and Wesson SW40VE .40 caliber pistol, a Ruger SR9C 9mm pistol and a stolen Titan Manufacturing .25 caliber pistol. Watson had previous convictions for burglary, heroin trafficking, aggravated drug trafficking, having weapons while under disability, cocaine possession and other crimes, according to court documents.
This case was prosecuted by Assistant U.S. Attorney Aaron Howell following an investigation by the Akron Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ohio Adult Parole Authority.
Bank Robber Sentenced to over 7.5 Years in PrisonRead the Press Release
On September 28, 2018, U.S. District Court Judge Donald M. Middlebrooks sentenced Matthew Geoffrey Larson, 26, of West Palm Beach, to over 7.5 years in prison following his bank robbery and Hobbs Act robbery convictions.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida and Robert Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
On July 25, 2018, Larson pled guilty to both counts of the Superseding Information charging him with bank robbery and Hobbs Act robbery, in violation of Title 18, United States Code, Sections 2113(a) and 1951(a) (Case No. 18-80107-CR-Middlebrooks). Judge Middlebrooks sentenced Larson to a total of 92 months in prison, to be followed by three years of supervised release. Larson was also ordered to pay $5,199 in restitution.
According to court documents, including an agreed upon factual proffer entered into by the defendant, on Friday, April 27, 2018, at approximately 5:15 p.m., Larson and a female companion, later determined to be 18 years old, entered the JP Morgan Chase Bank located at 1480 Greenview Shores Boulevard, Wellington, Florida. Larson and the female approached the teller station where the female robber held up in front of the teller a hand-written note while Larson stood behind her. The note read “No sudden movement, no alarm, no dye pack, if you do you’ll die.” After reading the note, the teller complied with the robbers’ demand and handed over the money from her counter drawer, a total of $4,420.00. Larson and the female then fled the bank.
Nine days later, on May 8, 2018, at approximately 3:35 p.m., Larson and the same female entered the Chic Boutique in Jupiter, Florida, and robbed the store clerk utilizing a note very similar to the one used in the Chase robbery, demanding money and directing the clerk not to activate a panic button or call the police. Again, the female robber handed the clerk the note while Larson stood behind her. Larson and the female robber fled the store with $152.00.
The female robber is currently facing state charges for the Jupiter robbery. A charging instrument contains accusations. A defendant is presumed innocent until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. Mrs. Fajardo Orshan thanked the Palm Beach County Sheriff’s Office and Jupiter Police Department. This case was prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
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.
Armed Robber Gets Significant Sentence for Pawn Shop BurglariesRead the Press Release
HOUSTON – Two Houston men have been ordered to federal prison for their convictions related to a string of Cash America Pawn robberies, announced U.S. Attorney Ryan K. Patrick. Patrick Earl Cooper Jr., 20, pleaded guilty July 2, 2018, while Joe Gutierrez entered his plea the month prior.
Today, U.S. District Judge Lynn Hughes handed Cooper a sentence of 108 months for his involvement in two armed robberies in addition to another seven years for using a firearm during a robbery. The total 16-year sentence will be followed by two years of supervised release. Gutierrez received 76 months for using a knife to rob a Cash America Pawn store on Oct. 31, 2017. He will also serve two years of supervised release.
Cooper was sentenced for two specific robberies at Cash America Pawn stores, during which the defendants stole firearms, cash and jewelry. Specifically, in October 2017, Cooper joined with Derrick Stewart to rob the Cash America Pawn at 8223 North Freeway at gunpoint. Cooper, Stewart and Gutierrez were finally captured and arrested Oct. 31, 2017, after robbing the Cash America Pawn at 1816 North Durham Street at knifepoint.
In imposing the sentence, the court found Cooper lacked remorse for his crimes and had not accepted responsibility when he assaulted a fellow inmate while pending sentencing.
Stewart, 20, of Houston, pleaded guilty to two robberies and using a firearm during a crime of violence and is scheduled to be sentenced Dec. 10, 2018.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Houston Police Department and the Harris County Precinct One Constable’s Office assisted with the Cash America Pawn robbery investigations. Assistant U.S. Attorneys Heather Winter and Richard Hanes are prosecuting the case.
AmerisourceBergen Corporation Agrees to Pay $625 Million to Resolve Allegations That it Illegally Repackaged Cancer–Supportive Injectable Drugs to Profit from OverfillRead the Press Release
The Department of Justice announced today that AmerisourceBergen Corporation and its subsidiaries AmerisourceBergen Specialty Group (ABSG), AmerisourceBergen Drug Corporation (ABDC), Oncology Supply Company (OSC), and Medical Initiatives Inc. (MII) (collectively, “ABC”) have agreed to pay $625 million to resolve allegations arising from its operation of a facility that improperly repackaged oncology-supportive injectable drugs into pre-filled syringes and improperly distributed those syringes to physicians treating vulnerable cancer patients. ABC is one of the nation’s largest wholesale drug companies and ranked number 11 on the Fortune 500 list. The drugs involved in ABC’s scheme were Procrit®, Aloxi®, Kytril® and its generic form granisetron, Anzemet® and Neupogen®.
Last year, AmerisourceBergen Specialty Group, a wholly-owned subsidiary of AmerisourceBergen Corporation, pled guilty to illegally distributing misbranded drugs and agreed to pay $260 million to resolve criminal liability for its distribution of these drugs from a facility that was not registered with the Food and Drug Administration (FDA). The settlement announced today resolves ABC’s civil liability to the United States under the False Claims Act for causing false claims for the drugs it repackaged to be submitted to federal health care programs.
“The $885 million combined civil and criminal resolution with ABC underscores our determination to utilize all tools at our disposal to pursue illicit schemes that seek to profit from circumvention of important safeguards designed to protect the nation’s drug supply,” said Assistant Attorney General Joseph H. Hunt of the Department of Justice’s Civil Division. “We will continue to be particularly vigilant where these schemes put the health and safety of vulnerable patients at risk.”
“ABC placed corporate profits over patients’ needs, endangering the health of vulnerable cancer patients,” stated United States Attorney Donoghue. “This settlement, and the substantial penalty ABC has agreed to pay, reflect this Office’s firm commitment to protecting those in need of healthcare and holding to account those who put the health and safety of patients at risk.” Mr. Donoghue expressed his appreciation to the Department of Veterans Affairs and the National Association of Medicaid Fraud Control Units for their assistance.
The United States contends that ABC sought to profit from the excess drug product or “overfill” contained within the original FDA-approved sterile vials for these cancer supportive injectable drugs by establishing a pre-filled syringe program through a subsidiary that it claimed was a pharmacy. The United States alleged that the “pharmacy” was in reality a repackaging operation that created and shipped millions of pre-filled syringes to oncology practices for administration to cancer-stricken patients. As part of this operation, ABC purchased original vials from their respective manufacturers, broke their sterility, pooled the contents, and repackaged the drugs into pre-filled syringes.
The United States alleged that ABC never submitted any safety, stability, or sterility data to the FDA to show that its operation ensured the safety and efficacy of the repackaged drug products. It further alleged that, at times, these pre-filled syringes were prepared in non-sterile conditions, contaminated with bacteria and other unknown particles, and lacked the required quality and purity.
In addition, by harvesting the overfill, ABC was able to create more doses than it bought from the original vial manufacturers. The United States alleged that ABC’s scheme enabled it to bill multiple health care providers for the same exact same vial of drug, causing some of those providers to bill the Federal Health Care Programs for the same vial more than once. The scheme also allegedly enabled ABC to increase its market share by offering various product discounts, which it leveraged to obtain new customers and to keep existing customers buying its entire portfolio of oncology drugs.
The settlement also resolves allegations that ABC gave kickbacks to physicians to induce them to purchase Procrit through the pre-filled syringe program. The alleged kickbacks were in the form of general pharmacy credits provided to customers, but which were not identifiable as specific to Procrit on the invoice.
Through these actions, the United States contended that ABC caused false claims to be submitted to the Centers for Medicare and Medicaid Services (“CMS”), the Department of Defense’s Defense Health Agency, which administers TRICARE, the Office of Personnel Management, which administers the Federal Employees Health Benefit Program, and the United States Department of Veterans Affairs (collectively, the “Federal Healthcare Payors”). Under the terms of today’s settlement, ABC will pay $581,809,006 plus accrued interest to the federal government and $43,190,994 plus accrued interest to state Medicaid programs.
“Drug companies such as ABC that seek to boost profits at the expense of cancer patients unnecessarily put the health and safety of this vulnerable population at risk,” stated HHS-OIG Special Agent-in-Charge Lampert. “Greed must never be a part of medical decision making. HHS-OIG, along with our law enforcement partners, is committed to protecting patient quality of care, and this settlement should serve as a warning to drug companies that are tempted to shortchange patient well-being.”
The settlement resolves allegations contained in three separate actions filed against ABC under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private parties may sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The relator share of the federal portion of the civil settlement will be $93,089,441.
The settlement was the result of close cooperation between the U.S. Attorney’s Office for the Eastern District of New York, the Civil Division, Commercial Litigation Branch, the Office of Inspector General of the Department of Health and Human Services, the Food and Drug Administration, the Department of Defense, the Office of Personnel Management, the Department of Veterans Affairs, and the state attorneys general and Medicaid Fraud Control Units. The three cases are captioned United States ex rel. Michael Mullen v. AmerisourceBergen Corporation, et al., Civil Action No. CV-10-4856 (E.D.N.Y); United States ex rel. Omni Healthcare Inc. v. AmerisourceBergen, et al., Civil Action No. CV-12- 1178 (E.D.N.Y); United States ex rel. Daniel Sypula and Kelly Hodge v. AmerisourceBergen Drug Corporation, et al., Civil Action No. CV-14-5278 (E.D.N.Y.).
Excepted as otherwise admitted as part of its guilty plea or the statement of facts accompanying the civil settlement agreement, the claims resolved by the civil settlement are allegations only, and there has been no admission of liability.
AmerisourceBergen Corp. to Pay $625 Million to Settle Civil Fraud Allegations Resulting from Its Repackaging and Sale of Adulterated Drugs and Unapproved New Drugs, Double Billing and Providing KickbacksRead the Press Release
AmerisourceBergen Corporation (ABC), one of the nation’s largest wholesale drug companies, and its subsidiaries AmerisourceBergen Specialty Group (ABSG), AmerisourceBergen Drug Corporation (ABDC), Oncology Supply Company (OSC), and Medical Initiatives, Inc. (MII) (collectively, “ABC” or “the Company”), entered into a settlement with the United States in which it agreed to pay $625 million to resolve civil liability under the False Claims Act, 31 U.S.C. § 3730 et seq. The claims against ABC arise from its repackaging and distributing of Pre-Filled Syringes (PFS) that were not approved for sale or use by the U.S. Food and Drug Administration (FDA). The drugs involved in the scheme were Procrit®, Aloxi®, Kytril® and its generic form granisetron, Anzemet® and Neupogen®, all supportive drugs for cancer patients undergoing chemotherapy treatment (the PFS Drugs).
As part of the civil settlement, ABC admitted that between January 2001 and January 2014, MII and OSC operated a program that created, packed and shipped millions of PFS to oncology practices for administration to vulnerable cancer patients (the PFS Program). At MII, an ABC subsidiary located in Alabama, the drug product was removed from the original glass vials and multiple vials of the product were pooled in untested plastic containers. Then the drug, including the overfill[1], was extracted and repackaged into syringes. By harvesting the overfill, ABC was able to create more doses than it bought from the original vial manufacturers and avoid opening some of the vials. ABC retained the unopened vials and sold them to other customers and to its subsidiary ABDC for resale. During the 13 years the PFS Program was in operation, MII manufactured thousands of syringes daily, and eventually over one million syringes per year. These syringes were sold throughout the United States. Approximately 57% of the patients who were injected with the PFS were Federal Health Care Program beneficiaries. The profit from the PFS Program was between $2.3 and $14.4 million annually for a total profit of at least $99.6 million.
ABC’s scheme enabled it to bill multiple health care providers for the same vial of drug, causing some of those providers to bill the Federal Health Care Programs for the same vial more than once. The scheme also enabled ABC to increase its market share by offering various product discounts, which it leveraged to obtain new customers and to keep existing customers who purchased its entire portfolio of oncology drugs. ABC excluded the entire PFS Program from its standard regulatory audit and pedigree compliance programs.
This civil settlement brings to $885 million the total penalties that ABC has paid to resolve liability resulting from the PFS Program. Previously, in September 2017, ABSG pleaded guilty to a criminal violation of 21 U.S.C. §§ 33l(a) and 333(a)(l) for the introduction of misbranded drugs into interstate commerce, as such drugs were manufactured and prepared at MII, an establishment not registered with the FDA pursuant to 21 U.S.C. § 360. In connection with that guilty plea, ABSG paid $260 million in criminal fines and forfeiture.
Richard P. Donoghue, U.S. Attorney for the Eastern District of New York; Joseph H. Hunt, Assistant Attorney General for the Civil Division of the Department of Justice; Mark S. McCormack, Special Agent-in-Charge, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI); Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), New York Region; Bret D. Mastronardi, Special Agent-in-Charge, U.S. Office of Personnel Management, Office of the Inspector General (OPM-OIG); and Leigh-Alistair Barzey, Special Agent-in-Charge, Defense Criminal Investigative Service (DCIS), Northeast Field Office, announced the settlement.
“ABC placed corporate profits over patients’ needs, endangering the health of vulnerable cancer patients,” stated United States Attorney Donoghue. “This settlement, and the substantial penalty ABC has agreed to pay, reflect this Office’s firm commitment to protecting those in need of healthcare and holding to account those who put the health and safety of patients at risk.” Mr. Donoghue also expressed his appreciation to the Department of Veterans Affairs and the National Association of Medicaid Fraud Control Units for their assistance.
“The $885 million combined civil and criminal resolution with ABC underscores our determination to utilize all tools at our disposal to pursue illicit schemes that seek to profit from circumvention of important safeguards designed to protect the nation’s drug supply,” said Assistant Attorney General Hunt. “We will continue to be particularly vigilant where these schemes put the health and safety of vulnerable patients at risk.”
“U.S. patients rely on the FDA to ensure that injectable chemotherapy drugs are safe and effective. When companies attempt to avoid FDA’s oversight authority, they endanger these vulnerable patients’ health,” stated FDA-OCI Special Agent-in-Charge McCormack. “We will continue to pursue and bring to justice those who violate the public’s trust.”
“Drug companies such as ABC that seek to boost profits at the expense of cancer patients unnecessarily put the health and safety of this vulnerable population at risk,” stated HHS-OIG Special Agent-in-Charge Lampert. “Greed must never be a part of medical decision making. HHS-OIG, along with our law enforcement partners, is committed to protecting patient quality of care, and this settlement should serve as a warning to drug companies that are tempted to shortchange patient well-being.”
“Ensuring that Federal employees, retirees, and their families are protected from the adulteration of drugs and other harmful practices is of the utmost importance to the OPM-OIG,” stated OPM-OIG Special-Agent-in-Charge Mastronardi. “We will continue to aggressively investigate and prosecute all individuals who pursue profit at the expense of patient safety. I’d like to thank our criminal investigators and their law enforcement partners for their hard work and dedication on this case.”
“Ensuring the integrity of TRICARE, the U.S. Department of Defense's health care plan, is of paramount importance to the Defense Criminal Investigative Service (DCIS),” stated DCIS Special Agent-in-Charge Barzey. “Today’s settlement is the result of a joint agency effort to investigate pharmaceutical companies that manufacture and sell adulterated drugs that could threaten U.S. military members, retirees and their dependents.”
In its investigation, the United States determined that for each of the drugs that were converted into PFS, ABC failed to submit a New Drug Application or a Biologics License Application demonstrating the safety and efficacy of the PFS and did not receive FDA approval to manufacture the PFS. For this reason, the PFS, distributed throughout the United States for 13 years, were unapproved new drugs. In addition, ABC did not register MII with the FDA as a repackager. By avoiding registration, ABC also evaded FDA inspection and important safety and sterility safeguards, including current good manufacturing practices (“cGMP”), required of repackagers to ensure that their drug products are safe and effective. The United States contends that ABC was aware of the requirements to register, submit to inspection and prepare drugs in accordance with cGMP, but chose not to comply. Instead, the government’s investigation revealed that ABC falsely represented to physician customers that MII was a pharmacy. Through this claim, ABC sought to avoid FDA regulations because certain pharmacy practices are regulated under applicable state pharmacy laws. However, MII did not comport itself as a pharmacy. For example, MII did not obtain valid prescriptions, check for harmful potential drug interactions, or see or counsel patients. As ABC admitted, on many occasions, MII assigned the name of an individual to a set of PFS, and OSC subsequently shipped PFS that were in a bag labeled with that individual’s name, despite the fact that the individual was not in fact a patient who was to be administered a PFS. In some instances, the individual's name assigned to the set of PFS was a staff member at a physician customer (such as a nurse or office manager); in others, the individual was no longer a patient of the physician customer, either because the individual was no longer receiving treatment and/or because the individual was deceased. In addition, MII often filled orders that had been submitted with a single patient name, and/or assigned a single individual’s name to an order of PFS, far in excess of plausible and/or safe use of the drug product contained in the syringes. In addition, the United States contends that ABC represented to physicians that its repackaging procedures followed aseptic technique and complied with all applicable laws. The United States determined that the PFS were prepared in an unclean environment, were contaminated with actual filth, and were not of the quality or purity that ABC represented.
The settlement also resolves allegations that ABC gave kickbacks to physicians to induce them to purchase drugs through the PFS program. The alleged kickbacks were in the form of general pharmacy credits provided to the customer, which were not identifiable on an invoice as specific to Procrit®. OSC billed customers for Procrit® at full price and at the end of the week or month added a “general credit” to the customers’ account. Credits were not given for other drugs. The pharmacy rebate was not listed on the invoice as related to Procrit®; it was listed as a pharmacy rebate for pharmacy sales.
With the exception of the facts contained in the Statement of Facts attached to the settlement agreement, the settlement is not an admission of wrongdoing by ABC.
The settlement is the culmination of a multi-year parallel civil and criminal investigation by this Office into allegations contained in three qui tam actions filed against ABC in the United States District Court for the Eastern District of New York.[2] On August 31, 2017, the United States intervened in those actions, which were unsealed today. The cases are U.S. ex rel Michael Mullen v. AmerisourceBergen, et al. No. 1:10-4856; U.S. ex rel Omni Healthcare Inc. v. AmerisourceBergen, et al. No. 12-CV-1178; and U.S. ex rel Daniel Sypula, RPH and Kelly Hodge v. AmerisourceBergen, et al., No. 1:14-5278. All of the cases are pending before the Honorable Nina Gershon. The criminal case was resolved through a plea agreement in September 2017. United States v. AmerisourceBergen Specialty Group, LLC, CR. No. 17-507 (NG). In connection with the settlement, ABC also entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”). In addition, ABC and 43 States have an agreement in principle to resolve claims under the States’ false claims acts.
The civil investigation and settlement with ABC were handled by the Office’s Civil Division. Assistant United States Attorneys Deborah B. Zwany and Matthew Silverman are in charge of these cases and were assisted by former Affirmative Civil Enforcement Coordinator Emily Rosenthal. The Office of Criminal Investigation at FDA, the Offices of the Inspector General at the Department of Health and Human Services, the Department of Defense, the Office of Personnel Management and the Department of Veterans Affairs assisted in the investigation of these cases. Sanjay Bhambhani, Department of Justice, Civil Frauds Section, and Jay Speers and Elizabeth Silverman, New York State Medicaid Fraud Control Unit assisted in the settlement of these cases. The criminal case against ABC was prosecuted by Assistant United States Attorneys Alixandra E. Smith and Ameet B. Kabrawala of the Office’s Business and Securities Fraud Section.
[1] The term “overfill” is a frequently used term in the pharmaceutical industry generally meaning the amount of extra drug above and beyond the labeled dose that is contained in an FDA-approved vial of drug. The overfill is not listed on the FDA-approved drug label. The reason manufacturers put overfill in each vial of drug is to ensure that the health care provider administering the drug will be able to extract the full labeled dose from the vial to give to the patient. See, e.g., 75 Fed. Reg. 73170, 73466-67 (Nov 29, 2010). It is also not included in the price of the vial.
[2] United States ex rel. Daniel Sypula v. AmerisourceBergen Corp., was originally filed in the Eastern District of Michigan and transferred to the Eastern District of New York.
26 Indicted in FBI, ATF, US Attorney's Office Project Safe Neighborhoods InvestigationsRead the Press Release
PROVIDENCE, RI – Twenty-six individuals have been indicted and more than two-dozen firearms, including three AK-47 and two AR-15 assault rifles, along with significant quantities of heroin, fentanyl, crack cocaine, and methamphetamine have been seized in a series of Project Safe Neighborhoods federal investigations into firearm and drug trafficking in and around Providence.
For the past 18 months, federal, state and local law enforcement agents and officers assigned to the FBI Safe Streets Task Force and to the ATF Task Force have conducted dozens of undercover investigations targeting individuals illegally obtaining and/or trafficking firearms, and trafficking narcotics.
Many of the individuals are members of or associated with street gangs.
Project Safe Neighborhoods is a federal, state and local law enforcement collaboration to identify, investigate and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
“For the past year, the Department of Justice has recommitted itself to the Project Safe Neighborhoods program, with the goal of reducing violent crime, thereby making all of our communities safer,” said United States Attorney Stephen G. Dambruch. He added, “These indictments and seizures demonstrate the significant progress federal, state and local law enforcement, working together as partners, made toward achieving that goal.”
Recent FBI Safe Street Task Force investigations have resulted in the seizure of seventeen firearms, including three AK-47 and two AR-15 assault rifles, more than 300 grams of fentanyl, 300 grams of crack cocaine, 100 grams of cocaine and 350 grams of crystal methamphetamine.
The most recent Safe Street Task Force arrests began in the pre-dawn hours of last Thursday, when more than 170 federal, state and local law enforcement agents, including multiple SWAT Teams, fanned out in Rhode Island and Southeastern Massachusetts seeking sixteen individuals named in nine sealed indictments returned by a federal grand jury in Providence. The Task Force also executed a total of seven federal court-authorized search warrants in Providence, Smithfield and New Bedford.
"These arrests should send a strong warning to gang members and violent criminals who engage in gun and drug trafficking in Providence and beyond. We're here, we're watching, and we will not standby and allow them to pollute our neighborhoods with guns, drugs, and crime,” said Special Agent in Charge of the FBI Boston Division Harold H. Shaw. “The FBI's Safe Streets Task Force will continue working together with our law enforcement partners, to disrupt criminals and their networks who are promoting violence on our streets. After all, every law abiding citizen should be free to walk down any street in any one of our neighborhoods without the fear of getting caught in the crosshairs of a violent crime."
ATF Task Force Project Safe Neighborhoods investigations have, to date, resulted in the seizure of twenty firearms and the indictment of eleven individuals. Among those arrested during a year-long investigation to identify individuals possessing or trafficking firearms, particularly in and around the Chad Brown neighborhood.
In a separate matter, investigated by the ATF Task Force, four alleged members or associates of the C-Block street gang are awaiting trial for their alleged roles in a crack cocaine distribution conspiracy run from inside the ACI.
“ATF and our law enforcement partners are committed to removing the criminal element from the streets of Rhode Island. These charges are another example of the importance of law enforcement working together and supporting the Project Safe Neighborhoods initiative,” commented Special Agent in Charge Mickey Leadingham.
Projected Safe Neighborhoods cases are being prosecuted by Assistant U.S. Attorneys Richard W. Rose, Milind H. Shah, Ly T. Chin, Dulce Donovan, Gerard B. Sullivan, Terrence Donnelly, and Ronald R. Gendron.
The FBI Safe Street Task Force is comprised of law enforcement agents and officers from the FBI, Rhode Island State Police, Providence Police Department, Cranston Police Department, Pawtucket Police Department, Woonsocket Police Department, Central Falls Police Department and the Special Investigations Unit of the Rhode Island Department of Corrections.
The ATF Task Force is comprised of law enforcement agents and officers from ATF, Providence Police Department, Pawtucket Police Department, Rhode Island State Police and the Special Investigations Unit of the Rhode Island Department of Corrections.
United States Attorney Stephen G. Dambruch and FBI Special Agent in Charge Harold H. Shaw acknowledge and thank the Bristol County Sheriff's Office, Fall River Police Department, New Bedford Police Department, North Attleboro Police Department, Massachusetts State Police, Rhode Island Fusion Center and the United States Marshals Service for their assistance in the execution of arrest and search warrants on Thursday.
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Sunday 30 September 2018
September Grand JuryRead the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 29 indictments charging 30 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Daniel Argueta-Espinoza, age 23, of O’Neill, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with misuse of a social security number as his own on or about July 24, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with fraud and misuse of visas & other documents on or about July 24, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Joel Avila-Sanchez, a/k/a Joel Avila, a/k/a Luis Alvarado, age 53, of Omaha, is charged in a two-count Indictment. Count I charges the defendant with identity theft on or about August 7, 2017. The maximum possible penalty if convicted is 15 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with falsely representing a Social Security number on or about August 12, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Santos A. Cortez-Sanchez, age 52, of O’Neill, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with misuse of a social security number on or about May 18, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with fraud and misuse of visas and other documents on or about May 18, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Misael Cruz-Escobar, age 33, of Sioux City, Iowa, is charged with illegal reentry after deportation on or about July 12, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jose Angel De Anda-Urenda, age 23, of Emerson, Nebraska, is charged with illegal reentry after deportation on or about August 29, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Devron Franklin, age 30, of Omaha, is charged with felon in possession of a firearm on or about July 2, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Israel Gaytan-Cruz, age 37, of Omaha, is charged in a two-count Indictment. Count I charges the defendant with illegal reentry after deportation following a felony conviction on or about September 14, 2018. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with resisting or impeding certain officers or employees of Homeland Security on or about September 14, 2018. The maximum possible penalty if convicted is 1 year imprisonment, a $100,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Curtis R. Gills, age 61, and Cardella L. Gills, age 61, of Omaha, are charged in a six-Count Indictment. Count I charges the defendants with conspiracy to defraud the U.S. beginning on or about April 1, 1991 and continuing until November, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment each. Count II charges the Curtis with theft of Government Property on or about January 1, 1994 and continuing until November 1, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 years term of supervised release, and a $100 special assessment. Count III charges the Curtis with false statements to a Government Agency on or about August 24, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count IV charges the defendants with false statements to a Government Agency on or about August 24, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment each. Count V charges the defendants with conspiracy to defraud the U.S. beginning on or about April 11, 1995 and continuing until June, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment each. Count VI charges the Curtis with theft of Government Property on or about August 28, 2013 and continuing until May, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 years term of supervised release, and a $100 special assessment.
* Flor De Maria Gonzalez-De Paz, age 39, of O’Neill, Nebraska, is charged with illegal reentry after deportation on or about August 8, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Melvin Hilario Gregorio-Mendez, age 26, of Lexington, Nebraska, is charged with illegal reentry after deportation on or about August 28, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Ashley R. Jimenez, age 32, of Sterling, Colorado is charged in a two-count Indictment with distribution of 5 grams or more of methamphetamine (actual) on or about March 4, 2018 and on or about March 20, 2018. The maximum possible penalty if convicted is 40 years imprisonment for each count, $5,000,000 fine for each count, 4 year term of supervised release for each count, and a $100 special assessment for each count.
* Marilyn K. Johnson, age 66, of Omaha, is charged with wrongfully obtaining individually identifiable health information on or about November 15, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Brad Lee Martin, a/k/a Casey Lee Kagy, age 44, of Omaha, is charged with possession with intent to distribute 5 grams or more of methamphetamine (actual) from on or about March 8, 2018 to on or about March 18, 2018. The maximum possible penalty if convicted is 40 years imprisonment, $5,000,000 fine, 4 year term of supervised release, and a $100 special assessment.
* Christian Molina, age 25, of El Paso, Texas, is charged with possession with intent to distribute 1 kilogram or more of heroin on or about July 2, 2018. The maximum possible penalty if convicted is Life imprisonment, $10,000,000 fine, 5 year term of supervised release, and a $100 special assessment.
* Diego Morales Xorxe, age 43, is charged with illegal reentry after deportation following a felony conviction on or about August 22, 2018. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Johana Morales-Ruano, age 23, of O’Neill, is charged with falsely representing a Social Security number as his own on or about December 2, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Connie Estrella Moreno, age 61, is charged with possession with intent to distribute 1 kilogram or more of heroin on or about September 13, 2018. The maximum possible penalty if convicted is Life imprisonment, $10,000,000 fine, 5 year term of supervised release, and a $100 special assessment.
* Dwight Morris, Jr., age 36, of Macy, Nebraska is charged in a two-count Indictment. Count I charges the defendant with domestic assault on or about August 15, 2018. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with being a domestic habitual offender on or about August 15, 2018. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Javon Murry, age 26, of Omaha, is charged with the attempted bank robbery of Mutual 1st Federal Credit Union on or about August 30, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Maurice J. Paola, age 23, of Las Vegas, Nevada, is charged in a two-count Indictment. Count I charges the defendant with interference with flight crew members and attendants on or about September 3, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with assault on board an aircraft on or about September 3, 2018. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Francisco Perez Ramos, age 22, of O’Neill, Nebraska, is charged with illegal reentry after deportation on or about August 8, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Lino Margarito Quintana-Morales, age 32, of Scottsbluff, Nebraska, is charged with illegal reentry after deportation on or about May 25, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Juan Isabel-Quishan, age 41, of Grand Island, Nebraska, is charged with illegal reentry after deportation on or about August 8, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Carlos Ely Ramos Gonzalez, age 49, is charged with illegal reentry after deportation on or about August 30, 2018 following an aggravated felony conviction. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Angel Romero-Hernandez, age 43, of O’Neill, Nebraska, is charged with fraud and misuse of a social security number on or about June 12, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Roman Saquiche-Sifuentes, age 67, of O’Neill, Nebraska, is charged with illegal reentry after deportation on or about August 8, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Domingo Velasquez, age 34, of Omaha, is charged with illegal reentry after deportation on or about August 24, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Roberto Vergara Gonzalez, age 50, of O’Neill, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with false representation of a social security number on or about April 14, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with fraud and misuse of visas and other documents on or about March 21, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Chasstady Rose Walker, age 34, is charged with possession with intent to distribute 50 grams or more of methamphetamine on or about August 27, 2018. The maximum possible penalty if convicted is not less than 40 years imprisonment, a $5,000,000 fine, not less than a four year term of supervised release, and a $100 special assessment.
Justice Department Files Net Neutrality Lawsuit Against the State of CaliforniaRead the Press Release
The Justice Department today filed a lawsuit against the state of California alleging that Senate Bill 822, an Internet regulation bill signed into law earlier today by Governor Jerry Brown, unlawfully imposes burdens on the Federal Government’s deregulatory approach to the Internet, announced Attorney General Jeff Sessions, Acting Associate Attorney General Jesse Panuccio, Assistant Attorney General Joseph H. Hunt for the Justice Department’s Civil Division, and Federal Communications Commission (FCC) Chairman Ajit Pai.
In 1996, a bipartisan Congress decided that the Internet should remain “unfettered by Federal or State regulation.” Since 2002, the FCC has accordingly classified broadband Internet access as an “information service” that is exempt from public-utility regulations. The FCC briefly departed from this classification in a 2015 Order, which imposed restrictions on the freedom of the Internet. In 2018, the FCC returned to its prior light-touch framework, ensuring that Internet access services are free and guided by a uniform set of federal rules, rather than by a patchwork of state and local regulations. The United States concluded that California, through Senate Bill 822, is attempting to subvert the Federal Government’s deregulatory approach by imposing burdensome state regulations on the free Internet, which is unlawful and anti-consumer.
In filing the complaint, Attorney General Jeff Sessions issued the following statement:
“Under the Constitution, states do not regulate interstate commerce—the federal government does. Once again the California legislature has enacted an extreme and illegal state law attempting to frustrate federal policy. The Justice Department should not have to spend valuable time and resources to file this suit today, but we have a duty to defend the prerogatives of the federal government and protect our Constitutional order. We will do so with vigor. We are confident that we will prevail in this case—because the facts are on our side.”
FCC Chairman Ajit Pai issued the following statement:
“I’m pleased the Department of Justice has filed this suit. The Internet is inherently an interstate information service. As such, only the federal government can set policy in this area. And the U.S. Court of Appeals for the Eighth Circuit recently reaffirmed that state regulation of information services is preempted by federal law.
“Not only is California’s Internet regulation law illegal, it also hurts consumers. The law prohibits many free-data plans, which allow consumers to stream video, music, and the like exempt from any data limits. They have proven enormously popular in the marketplace, especially among lower-income Americans. But notwithstanding the consumer benefits, this state law bans them.
“The Internet is free and open today, and it will continue to be under the light-touch protections of the FCC’s Restoring Internet Freedom Order. I look forward to working with my colleagues and the Department of Justice to ensure the Internet remains ‘unfettered by Federal or State regulation,’ as federal law requires, and the domain of engineers, entrepreneurs, and technologists, not lawyers and bureaucrats.”
Friday 28 September 2018
VA Exonerated in Two Negligence LawsuitsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that U.S. District Judge Elizabeth A. Wolford dismissed a negligence lawsuit seeking damages brought by plaintiff Lenray Harris against the Department of Veterans Affairs Medical Center (VA) in Buffalo. The plaintiff claimed that she suffered emotional injuries following the VA’s disclosure that several of its nurses improperly administered insulin pens during the time period that Harris received treatment at the VA following knee replacement surgery. The plaintiff was given insulin for her diabetes and claimed that she feared that she had contracted a blood borne disease.
In her decision, Judge Wolford stated, “[p]laintiff cannot support a claim for negligent infliction of emotional distress.”
In a similar ruling, U.S. Magistrate Judge Hugh B. Scott recommended dismissal of a negligence lawsuit filed by plaintiff Archie Maxwell who claimed that the VA reused insulin pens and exposed Maxwell to HIV or Hepatitis B or C. The plaintiff was treated for diabetes while an inpatient at the VA from December 29, 2011, to January 9, 2012, and from August 9, 2012, to August 14, 2012. Maxwell alleged that in February 2013, he tested positive for Hepatitis B.
In his decision, Magistrate Judge Scott stated, “There is no record of any patient, including plaintiff, being infected from use of the insulin pens, thus plaintiff fails to prove actual exposure to HIV or Hepatitis C.”
From 2012 to 2013, the Veterans Affairs Office of Inspector General (OIG), Office of Healthcare Inspections, investigated the use of insulin pens at the Buffalo VA. The OIG found no documented cases of transmitting blood borne pathogens related to the use of an insulin pen on multiple patients.
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Two New Orleans Men Charged with Illegal Possession of FirearmsRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced today that a federal grand jury returned an indictment against defendants LARMONDO ALLEN, a/k/a “Nino,” and WAYNE BANKS, both from New Orleans, for being felons in possession of firearms, in violation of Title 18, United States Code, Section 922(g)(1). ALLEN and BANKS face a maximum term of imprisonment of 10 years, a $250,000 fine, three years supervised release following any term of imprisonment, and a $100 special assessment fee.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This matter was handled by the Louisiana State Police and the Federal Bureau of Investigation. Assistant U.S. Attorney Liz Privitera is prosecuting the case.
Two MCI-Cedar Junction Inmates and Two Family Members Indicted on Drug ChargesRead the Press Release
BOSTON – Two MCI-Cedar Junction inmates, and the wife and mother of one of the inmates, were charged in federal court in Boston in connection with smuggling drugs into the facility.
Chad Connors, 42, and William Guillemette, 39, both inmates at Massachusetts Correctional Institute – Cedar Junction (MCI-CJ) in South Walpole, and Lisa Guillemette, 42, and Margaret Guillemette, 58, both of Fall River, were each charged in an indictment unsealed today with one count of conspiracy to distribute Suboxone and Alprazolam. Lisa and Margaret Guillemette were arrested today and will appear in federal court in Boston this afternoon. Connors and William Guillemette will appear at a later date.
According to the charging documents, Chad Connors and William Guillemette were inmates housed at MCI-CJ’s Departmental Disciplinary Unit (DDU). It is alleged that Connors was involved in a romantic relationship with Christine Ramos, a nurse assigned to the DDU. At Connors’ request, Ramos agreed to smuggle contraband, including controlled substances, into MCI-CJ. In order to do this, Ramos opened two Post Office Boxes through a third party. Connors sent letters and money to Ramos at these P.O. Boxes, and, at William Guillemette’s direction, his wife, Lisa, and mother, Margaret, obtained and sent Suboxone and Alprazolam to the P.O. Boxes. Ramos subsequently smuggled the drugs into the DDU and delivered them to Connors. It is alleged that Connors and William Guillemette distributed the drugs to other inmates, who sent checks to Lisa and Margaret Guillemette as payment for the drugs.
According to court documents, Suboxone and Alprazolam are Schedule III and Schedule IV controlled substances, respectively.
Christine Ramos was previously charged and pleaded guilty to one count of conspiracy to distribute Suboxone and Alprazolam. She is scheduled to be sentenced on Dec. 17, 2018.
The charge of conspiracy to distribute Suboxone and Alprazolam provide for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $500,000, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Thomas A. Turco III of the Massachusetts Department of Correction; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.