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Friday 28 September 2018
Two Lynn Men Arrested for Drug and Firearm PossessionRead the Press Release
BOSTON – Two Lynn men were arrested yesterday and charged in federal court in Boston in connection with drug and firearm charges.
Carlos Lopez, aka “C-Lo,” 30, was charged in an indictment unsealed yesterday with one count of possession with intent to distribute heroin and marijuana, one count of being a felon in possession of firearms and ammunition, and one count of possession of firearms in furtherance of drug trafficking crimes. Dionis Lopez, aka “Kuku,” 28, was indicted on one count of possession with intent to distribute 40 grams or more of fentanyl, cocaine and marijuana, one count of possession of a firearm with an obliterated serial number, and one count of possession of firearms in furtherance of drug trafficking crimes. The defendants were detained following an initial appearance in federal court in Boston.
According to the indictment, on Nov. 14, 2017, Carlos Lopez possessed and intended to distribute heroin and marijuana while in possession of a Bersa, Model Thunder 380, .380 caliber pistol and a Beretta, Model Px4, 9mm pistol with various rounds of 9mm ammunition. Due to a previous conviction for a crime punishable by more than one year in prison, Carlos Lopez was prohibited from possessing a firearm or ammunition.
The indictment also alleged that, on Nov. 14, 2017, Dionis Lopez possessed and intended to distribute 40 grams or more of a substance containing fentanyl, cocaine and marijuana while in possession of a Glock, Model 27, .40 caliber pistol with an obliterated serial number and a Glock, Model 19, 9 mm pistol.
The charge of possession with intent to distribute heroin and marijuana provides for a sentence of no greater than 20 years in prison, at least three years and up to life of supervised release and a fine of $1 million. The charge of being a felon in possession of firearms and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of possession of firearms in furtherance of drug trafficking crimes provides for a mandatory sentence of five years in prison to be served consecutive to any other term imposed and no greater than three years of supervised release. The charge of possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to life of supervised release and a fine of $2 million. The charge of possession of a firearm with an obliterated serial number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Lynn Police Chief Michael Mageary made the announcement today. Assistant U.S. Attorney Timothy Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
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.
Two Individuals Indicted for Firearms OffensesRead the Press Release
SAN JUAN, P.R. – On September 20, 2018, a federal grand jury in the District of Puerto Rico returned an indictment against two defendants charged for being convicted felons in possession of firearms, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) is in charge of the investigation.
According to the information contained in the indictment, Benny Ruperto Rivera and Raymond Quintana Sotomayor, having been convicted of a crime punishable by imprisonment for a term exceeding one year did knowingly possess in and affecting interstate commerce firearms of unknown make, model and caliber and ammunition, said firearms and ammunition having been shipped and transported in interstate commerce; in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Benny Ruperto Rivera was arrested today and Raymond Quintana Sotomayor was arrested on September 19, 2018.
These arrests are part of the Trigger Puller Initiative, the Mayagüez Strike Force, and ATF. Ruperto Rivera and Raymond Quintana Sotomayor are two of the four individuals in a video that has been making the rounds in the media where rifles and guns are brandished at the camera by the four individuals threatening rapper Anuel AA. Quintana Sotomayor was also absconded from state probation at the time of his arrest.
The case is being prosecuted by Assistant United States Attorney Teresa S. Zapata-Valladares. If convicted, defendants face up to 10 years in prison. An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Truck Driver Sentenced for Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK - Neal Braden, 61, was sentenced today to serve 97 months in prison for receiving and possessing child pornography, announced United States Attorney Grant C. Jaquith and James Hendricks, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
Senior United States District Judge Hon. Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Braden is released from prison and ordered payment of $1,000 in restitution to each of four victims. As a result of his conviction, Braden will be required to register as a sex offender upon his release from prison.
As part of his previous guilty plea, Braden admitted that he downloaded videos of child pornography over the internet and that he possessed those videos on his laptop computer in his truck when he was stopped by the New York State Police for failing to have the appropriate Highway Use Tax documentation displayed on his vehicle. A search of Braden’s laptop computer revealed that he possessed 19 videos depicting child pornography.
In addition to his plea to receipt of child pornography, Braden also pled guilty to an indictment pending in the Western District of Missouri that charged him with Possessing Child Pornography in 2015 in Morgan County, Missouri.
Braden’s case was investigated by the New York State Police Troop D, the Morgan County, (Missouri) Sheriff's Department and the Federal Bureau of Investigation’s (FBI) Albany and Kansas City Divisions. The case was prosecuted by Assistant U.S. Attorneys Geoffrey J. L. Brown (NDNY) and Ashley Turner (WDMO).
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Three Individuals Charged with Distributing over 100 Kilograms of Fentanyl, Fentanyl Analogues and Heroin on Long IslandRead the Press Release
Gary Davis, Joel Lee Faison and Tamien Trent were arraigned late yesterday afternoon before United States District Court Judge Joseph F. Bianco at the federal courthouse in Central Islip on a 13-count indictment charging them with conspiring to distribute and possess with intent to distribute controlled substances, including heroin and fentanyl, using firearms in connection with these drug trafficking crimes and related charges. At their initial appearances on September 27, 2018, each defendant was ordered permanently detained.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; Timothy D. Sini, District Attorney for Suffolk County; and Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), announced the charges.
“As alleged in the indictment, these defendants sold tremendous amounts of heroin, fentanyl and fentanyl analogues throughout Long Island, flooding our streets with life-threatening drugs and enriching themselves at the expense of those suffering from addiction,” stated United States Attorney Donoghue. “The Eastern District and our partners will continue the fight to protect our communities from those who deal heroin and other deadly drugs seeking to profit from the opioid epidemic.” Mr. Donoghue extended his grateful appreciation to the New York National Guard Counter Drug Task Force for their assistance in the investigation.
“We know these mixtures of fentanyl and heroin are killing people every day in our communities,” stated FBI Assistant Director-in-Charge Sweeney. “One of the subjects in this case actually bragged about how potent the drugs were that he was selling. The FBI and the agencies we’ve partnered with on the FBI Long Island Gang Task Force work each day to stop the proliferation of these deadly drugs, and we won’t stop until we round up every dealer who looks to make money on the pain and suffering of people.”
“The charges against the defendants illustrate the law enforcement community’s shared and unwavering commitment to ridding the community of deadly drugs and bringing to justice those who distribute this poison in our communities,” stated HSI Special Agent-in-Charge Melendez.
“What is particularly sickening about these defendants is that they used as a selling point the fact that the drugs were causing overdoses. They did so by selling fentanyl analogs – synthetic narcotics that are specifically designed by drug dealers to evade law enforcement,” stated Suffolk County District Attorney Sini. “The message here is clear: we will not tolerate individuals peddling this poison in our communities and no matter what steps they take to evade law enforcement, we will find them. I thank our partners in the FBI, ICE, and the Suffolk County Police Department for continuing to partner with my office to target drug dealers and help end our community's opioid crisis. Most of all, I appreciate the outstanding work done by the United States Attorney's Office for the Eastern District of New York and its great prosecutors.”“Taking these three high-level suppliers off the streets will make a significant impact on the amount of drugs that are available for sale,” stated SCPD Commissioner Hart. “These three unabashedly fed the addictions of countless individuals, ruining the lives of not only those addicted, but of their families as well. We should all be proud of the work of everyone involved in not only this case but all the detectives and investigators who dedicate their efforts to fighting the drug epidemic that’s impacting our communities.”
According to the indictment and court filings, from approximately September 2014 until their arrests on September 27, 2018, the defendants distributed in excess of 100 kilograms of heroin, fentanyl and fentanyl analogues, as well as crack cocaine across Long Island. Trent boasted to a government witness that the narcotics he was selling were rendering people unconscious and, on at least one occasion, he forwarded photographs to another person of unconscious drug customers to demonstrate the potency of the drugs. The government’s investigation revealed that the defendants used firearms to protect their organization and distribution chain from rivals. Search warrants executed at the time of the defendants’ arrests resulted in the recovery of a substance that field-tested positive for heroin, a handgun, two shotguns and United States currency.
If convicted, the defendants face a maximum sentence of lifetime imprisonment.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Division. Assistant United States Attorneys Christopher C. Caffarone and Mark E. Misorek, and Special Assistant United States Attorney Jacob T. Kubetz are in charge of the prosecution.
The Defendants:
GARY DAVIS (also known as “G”)
Age: 38
Residence: Mastic Beach, New YorkJOEL LEE FAISON (also known as “Face”)
Age: 42
Residence: Mastic Beach, New YorkTAMIEN TRENT (also known as “Taim”)
Age: 36
Residence: Mastic Beach, New YorkEDNY Docket No. 18-CR-1221 (JFB)
St. George Woman Pleads Guilty to Unlawfully Collecting over $93,000 in Deceased Mother’s Social Security BenefitsRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Carol Philbin, 66, of St. George, Vermont, appeared today in federal district court in Burlington to answer to charges that, following her mother’s death in July 2009, Philbin unlawfully collected $93,345 in Social Security Administration benefits issued to her mother and used the money for her own expenses. The Information filed in the case covers the time-period between July 2009 and April 2014. United States District Court Judge Christina Reiss accepted Philbin’s guilty plea to the one count charged in the Information and released Philbin on conditions. Judge Reiss ordered Philbin to be back in U.S. District Court on February 11, 2019, for sentencing.
According to court documents, Carol Philbin was formerly Vice President for Personal Trusts at Merchant’s Bank and a trust officer before that at various other banks. Following her mother’s non-fatal stroke, Philbin served as Trustee for her mother’s estate during her mother’s lifetime. As such, Philbin was aware that her mother was receiving Social Security benefits while she was alive. When her mother died on July 2, 2009, Philbin knew that her responsibilities included notification to various parties, including the Social Security Administration. Philbin failed to notify the Social Security Administration of her mother’s death, despite being aware of her duty to so report. Instead, between July 2009 and April 2014, Philbin continued to receive the benefits issued to her mother and used the money for her own expenses. In total, Philbin unlawfully received and retained $93,345.00 in social security payments.
Philbin pleaded guilty to one count of making a false statement to a department or agency of the United States, a violation of 18 U.S.C. § 1001(a)(2). Philbin faces up to five years of imprisonment, followed by up to three years of supervised release. Philbin further faces a fine of up to $250,000. The actual sentence, however, will be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. As part of her negotiated plea with the government, the government agreed to recommend a sentence of time served if Philbin pays $50,000 in restitution to the Social Security Administration on or before sentencing and $43,345 in restitution in yearly installments over a period of three years.
The United States is represented in this matter by Assistant U.S. Attorney Abigail Averbach. Carol Philbin is represented by Peter Langrock of Langrock Sperry & Wool of Burlington, Vermont.
Sentient Science to Pay $2.675 Million to Resolve False Claims Act AllegationsRead 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 Sentient Science Corporation, a Buffalo, NY, based research and technology corporation, has agreed to pay the United States $2,675,000 to resolve allegations that it violated the False Claims Act.
Assistant U.S. Attorney Amy N. Okereke, who handled the case, stated that Sentient Science made false statements and representations to receive federal funding under three Small Business Innovation Research (SBIR) awards issued by the National Science Foundation (NSF) and the U.S. Department of Energy (DOE). SBIR grant awards are issued to small, for-profit businesses, such as Sentient, for the purpose of stimulating technological innovation, to meet federal research and development needs, and increasing private sector commercialization of innovations derived from federal research and development.
According to the settlement, Sentient made false statements concerning:
• Key personnel that Sentient claimed it would use in the performance of research projects funded by the United States. The corporation did not use such personnel and in some instances substituted significantly less qualified employees to perform work;
• Sentient claimed to have received third-party contracts as a result of work performed for the government in order to obtain additional government funding; and
• Information in grant milestone reports which falsely represented that Sentient expended grant monies that in fact had had not expended.“Federal funding, such as the Small Business Innovation Research award, is designed to give small business the chance to turn big dreams into a reality,” stated U.S. Attorney James P. Kennedy, Jr. “When such funding designed to stimulate technology and research is misused, not only do the American taxpayers pay the price, but so do those businesses whose dreams may never become a reality, depriving our country of what could be life-changing scientific research.”
“The SBIR program is a valuable tool in advancing NSF’s mission to promote the progress of science by increasing opportunities for small businesses to undertake cutting-edge scientific research, and it is essential to protect the integrity of this program,” commented Alison Lerner, the Inspector General for NSF. “The NSF Office of Inspector General is committed to vigorously pursuing oversight of these taxpayer funds and I commend the U.S. Attorney’s Office and our investigative partners for their strong support in this effort.”
“Compliance with Small Business Innovation Research (SBIR) requirements is expected by all who have the privilege of being funded by the U.S. Department of Energy for this essential program. The Office of Inspector General is committed to investigating allegations of wrongdoing associated with the SBIR grants so that the American taxpayer can maintain confidence in the SBIR program,” said Acting Inspector General April G. Stephenson.
The settlement is the result of an investigation by the National Science Foundation, Office of Inspector General, under the direction of Inspector General Allison Lerner, and the Department of Energy, Office of Inspector General, under the direction of Acting Inspector General April G. Stephenson.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Rockland Woman Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
BOSTON – A Rockland woman pleaded guilty today in federal court in Boston to stealing Social Security benefits.
Catherine M. Anzalone, 55, pleaded guilty to one count of theft of public funds. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for Jan. 10, 2019. Anzalone was arrested and charged in February 2018.
Anzalone’s mother passed away in March 2000. At the time of her death, Anzalone’s mother was receiving monthly retirement benefits from Social Security. Social Security, however, was never advised of Anzalone’s mother’s death and continued to deposit her benefit payments into a bank account she held jointly with Anzalone. From April 2000 through April 2017, Anzalone stole approximately $155,736 in Social Security benefits.
The charge of theft of public funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Reginald Shannon Irby Sentenced Following Guilty Plea to a Federal Firearm ChargeRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Reginald Shannon Irby of Mobile, Alabama was sentenced to 24 months imprisonment. Irby’s sentencing followed entry of a May 2018 guilty plea to a charge of prohibited person in possession of a firearm. Chief United States District Court Judge Kristi K. Dubose imposed the sentence after hearing from his attorney that Irby was a drug user that needs help. Judge Dubose noted that the twenty-six year old Irby needs to decide if he wants to be in and out of prison for the rest of his life. Judge Dubose also recognized Irby’s family support in the courtroom and told Irby that he could turn things around. The Judge imposed the federal term of imprisonment to run concurrently from the date of sentencing, with a state revocation sentence Irby is currently serving for two prior armed burglary convictions from 2013. Irby’s guilty plea included his admission that on January 3, 2018, he was in knowing possession of a loaded .32 caliber revolver.
Possession of a firearm by a prohibited person, in this instance a convicted felon, is a violation of Title 18, United States Code Section 922(g)(1). Irby’s term of imprisonment will be followed by a three (3) year term of supervised release.
This case arose from a referral by the Mobile Police Department to the Mobile Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives who completed the investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
Pittsburgh Man Pleads Guilty to Possessing Illegal Drugs while on Supervised Release for a Prior Drug ConvictionRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, pleaded guilty yesterday in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Devon Horne, age 31, pleaded guilty before United States District Judge Mark R. Hornak to one count, and he admitted violating the terms of his supervised release for a prior case in which he pleaded guilty to conspiracy to distribute heroin.
In connection with the guilty plea, the court was advised that on or about January 4, 2018, Horne knowingly and intentionally possessed with intent to distribute quantities of heroin and crack cocaine, while under supervision for his prior conviction of conspiracy to distribute heroin.
Judge Hornak scheduled sentencing for January 23, 2019 at 9:30 a.m. The law provides for a total sentence of not more than 30 years in prison, a fine of not more than $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and the Drug Enforcement Administration conducted the investigation that led to the prosecution of Horne.
Pineville man sentenced to five years in prison for accessing child pornography onlineRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced today that a man from Pineville was sentenced to 60 months in prison for accessing child pornography online.
Corey Brossette, 24, of Pineville, Louisiana, was sentenced by U.S. District Judge Dee D. Drell to one count of access with intent to view child pornography. He was also sentenced to five years of supervised release and is required to register as a sex offender. According to the May 17, 2018 guilty plea, law enforcement agents detected Brossette’s computer accessing a child pornography website on what’s known as the dark web or the deep web and viewing child pornography. After agents determined the location of the computer accessing the website, agents searched the home where Brossette was living at the time and interviewed Brossette. He admitted viewing child pornography online and using the dark web. To learn more about the dark web or deep web, visit the FBI’s website at www.fbi.gov/news/stories/a-primer-on-darknet-marketplaces.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Those concerned may leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Alexandria FBI office number is (318) 443-5097.
The FBI conducted the investigation. Assistant U.S. Attorney Mike O’Mara prosecuted the case.
Pennsylvania Man Admits Defrauding Lending Company Out of More Than $400,000Read the Press Release
CAMDEN, N.J. – The president of a staffing company today admitted defrauding a commercial finance lending company out of more than $400,000, U.S. Attorney Craig Carpenito announced.
Jeremy Hare, 47, of Philadelphia, pleaded guilty today before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging him with wire fraud.According to documents filed in the case and statements made in court:
Hare was the president and managing member of Apollo Search Partners LLC, a staffing agency with an office in New Jersey. On June 16, 2017, Hare had Apollo enter into a financing agreement with a commercial finance lender that offered funding to companies so that they could meet payroll and other obligations. The lender agreed to provide funding to Apollo. In order to get funding, Apollo would provide the Victim Company invoices and supporting time cards for each person Apollo staffed with a client.
Between June 20, 2017 and Aug. 15, 2017, Hare submitted more than 15 invoices to the lender even though Apollo never staffed most of the individuals listed on the invoices and the time sheets submitted with the invoices included hours that were never worked. Based on those invoices, the lender provided more than $400,000 to Apollo between June and August 2017. To date, the lending company has not received reimbursement for that funding.
The charge carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 4, 2019.U.S. Attorney Carpenito credited and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Andrew Kogan of the U.S. Attorney’s Office Cybercrime Prevention and Enforcement Unit and Sarah Devlin of the Asset Recovery and Money Laundering Unit in Newark.
Defense counsel: Ronald L. Greenblatt Esq., Philadelphia
Owner of Fife, Washington Seafood Processing Company Sentenced to Prison for Sea Cucumber Lacey Act ViolationRead the Press Release
The owner of Orient Seafood Production of Fife, Washington, was sentenced today in U.S. District Court in Seattle to two years in prison, three years of supervised release and nearly $1.5 million in restitution for his scheme to overharvest and profit on illegally taken sea cucumbers, announced U.S. Attorney Annette L. Hayes. HOON NAMKOONG, 62, pleaded guilty in April 2018, admitting that between August 2014, and November 2016, he conspired with others to underreport the amount of sea cucumbers purchased for processing by approximately 250,000 pounds. The post-processing market value of the stolen sea cucumbers is nearly $1.5 million. At sentencing Chief U.S. District Judge Ricardo S. Martinez said, by creating the market for illegal harvesters NAMKOONG did “significant damage to sea cucumber populations and habitat that may take years to repair.”
“This defendant lined his pockets by purchasing and selling illegally harvested sea cucumbers equal to as much as 20 percent of the total allowed state-wide harvest,” said U.S. Attorney Hayes. “This illegal activity damages the health of the Puget Sound ecosystem by endangering the sustainability of the sea cucumber population. Illegal harvesting undermines quotas designed to protect the resource and keep the Sound healthy for our children and generations to come.”
According to records filed in the case, over portions of three harvesting seasons, HOON NAMKOONG purchased sea cucumbers from both tribal and non-tribal fishers in the Puget Sound region. Sea cucumbers are classified as shellfish, and harvests are regulated by both Washington State and Tribal authorities. To protect the resource, the harvests are tracked by fish tickets signed by both the fisher and the purchaser. HOON NAMKOONG admits that he falsified fish tickets, failed to prepare fish tickets or retain confirmation of fish tickets submitted by third parties, and frequently paid fishers in cash for their sea cucumbers so there would be no financial record of the total amount of sea cucumbers taken. Falsifying fish tickets, and processing and selling in interstate or foreign commerce illegally obtained shellfish are violations of the Lacey Act, the federal law that prohibits illegal trafficking in wildlife, fish, and plants.
HOON NAMKOONG’s company processed the sea cucumbers and sold and transported them to wholesale seafood buyers in both the U.S. and Asia, for a gain of nearly $1.5 million. NAMKOONG was ordered to pay $1,499,999 in restitution to the state and Tribal entities.
The case was investigated by the NOAA Office of Law Enforcement and the Washington State Department of Fish and Wildlife.
The case is being prosecuted by Assistant United States Attorneys Matthew Diggs and Seth Wilkinson.
Oil Services CEO and Executive Sentenced to Prison for Roles in Foreign Bribery SchemeRead the Press Release
A former CEO and former executive of an oil services company were sentenced to prison today for their involvement in an international bribery conspiracy.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Anthony “Tony” Mace, 66, of the United Kingdom, the former CEO of SBM Offshore, N.V. (SBM), a Dutch oil services company, and a former Board Member of SBM’s U.S.-based subsidiary, SBM Offshore USA Inc. (SBM USA), was sentenced to serve 36 months in prison and a fine of $150,000. Robert Zubiate, 66, of Agoura Hills, California, a former sales and marketing executive at SBM USA, was sentenced to serve 30 months in prison and a fine of $50,000.
“Anthony Mace and Robert Zubiate played key roles in a massive bribery scheme that involved the payment of millions of dollars to public officials in exchange for lucrative oil-services contracts,” said Assistant Attorney General Benczkowski. “Their actions rewarded corrupt officials’ greed and tilted the playing field against honest, law-abiding companies. Today they paid a heavy price for their crimes. Their sentences should serve as a warning to corporate executives everywhere: if you pay bribes to advance your business interests, we will catch you and we will prosecute you to the fullest extent of the law.”
“Pursuing corrupt companies and individuals who misuse our financial system to commit FCPA violations represents our commitment to keeping the integrity of American democracy in place both here and abroad,” said U.S. Attorney Patrick. “We will continue to prosecute such cases involving wrongdoing for corporate crimes and greed.”
“This case is a prime example of Homeland Security Investigations’ enduring commitment to work closely with our foreign law enforcement partners to track down those who seek to gain an unfair competitive advantage in the international marketplace,” said HSI Special Agent in Charge Dawson. “By working together to hold these individuals accountable for their actions, we have taken a significant step to level the playing field for companies and consumers.”
In November 2017, Mace and Zubiate each pleaded guilty to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to bribe foreign government officials in Brazil, Angola and Equatorial Guinea.
According to admissions made in connection with his plea agreement, Mace acknowledged that prior to his becoming CEO, other employees of SBM entered into an agreement to pay bribes to foreign officials including at Brazil’s state-controlled oil company, Petróleo Brasileiro S.A. (Petrobras); Angola’s state-owned oil company, Sociedade Nacional de Combustíveis de Angola, E.P. (Sonangol); and Equatorial Guinea’s state-owned oil company, Petroléos de Guinea Ecuatorial (GEPetrol). Mace admitted that he joined the conspiracy by authorizing payments in furtherance of the bribery scheme and deliberately avoided learning that those payments were bribes.
In particular, Mace maintained a spreadsheet reflecting payments to five individuals. Mace acknowledged that even though he was aware there was a high risk those individuals were Equatorial Guinean officials, he nevertheless authorized SBM to make over $16 million in payments to those individuals. Mace further continued a practice that was instituted before he became CEO by splitting payments to SBM’s Brazilian intermediary, that is, paying a portion of the intermediary’s commission to an account in Brazil and another portion of the agent’s commission to accounts in Switzerland held in the name of shell companies. Mace deliberately avoided learning that the ultimate recipients of the payments that he authorized to the shell companies were Petrobras officials, he admitted.
According to admissions made in connection with Zubiate’s plea, from between 1996 and 2012, Zubiate and others used a third-party sales agent to pay bribes to foreign officials at Petrobras in exchange for those officials’ assisting SBM and SBM USA with winning lucrative offshore oil projects from Petrobras. Zubiate also admitted engaging in a kickback scheme with the bribe-paying sales agent for SBM and its SBM USA.
In November 2017, SBM entered into a $238 million dollar, three-year deferred prosecution agreement with the United States over its role in the conspiracy, while its subsidiary, SBM USA, pleaded guilty to one count of conspiracy to violate the FCPA.
HSI and IRS Criminal Investigation investigated the case. Trial Attorney Dennis R. Kihm of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The Department of Justice is grateful to Brazil’s Ministério Público Federal, the Netherlands Public Prosecution Service and Switzerland’s Office of the Attorney General and Federal Office of Justice for providing substantial assistance in gathering evidence during this investigation.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Oil Services CEO and Executive Sentenced for Roles in Foreign Bribery SchemeRead the Press Release
HOUSTON - A former CEO and former executive of an oil services company were sentenced to prison today for their involvement in an international bribery conspiracy.
U.S. Attorney Ryan K. Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Anthony “Tony” Mace, 66, of the United Kingdom was the former CEO of SBM Offshore N.V. (SBM), a Dutch oil services company and a former Board Member of SBM’s U.S.-based subsidiary, SBM Offshore USA Inc. (SBM USA). He was sentenced to serve 36 months in prison and ordered to pay a fine of $150,000. Robert Zubiate, 66, of Agoura Hills, California, a former sales and marketing executive at SBM USA, was sentenced to 30 months in prison and ordered to pay a $50,000 fine.
“Pursuing corrupt companies and individuals who misuse our financial system to commit FCPA violations represents our commitment to keeping the integrity of American democracy in place both here and abroad,” said Patrick. “We will continue to prosecute such cases involving wrongdoing for corporate crimes and greed.”
“Anthony Mace and Robert Zubiate played key roles in a massive bribery scheme that involved the payment of millions of dollars to public officials in exchange for lucrative oil-services contracts,” said Benczkowski. “Their actions rewarded corrupt officials’ greed and tilted the playing field against honest, law-abiding companies. Today they paid a heavy price for their crimes. Their sentences should serve as a warning to corporate executives everywhere: if you pay bribes to advance your business interests, we will catch you and we will prosecute you to the fullest extent of the law.”
“This case is a prime example of HSI’s enduring commitment to work closely with our foreign law enforcement partners to track down those who seek to gain an unfair competitive advantage in the international marketplace,” said Dawson. “By working together to hold these individuals accountable for their actions, we have taken a significant step to level the playing field for companies and consumers.”
In November 2017, Mace and Zubiate each pleaded guilty to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to bribe foreign government officials in Brazil, Angola and Equatorial Guinea.
According to admissions made in connection with his plea agreement, Mace acknowledged that prior to his becoming CEO, other employees of SBM entered into an agreement to pay bribes to foreign officials including at Brazil’s state-controlled oil company, Petróleo Brasileiro S.A. (Petrobras); Angola’s state-owned oil company, Sociedade Nacional de Combustíveis de Angola, E.P. (Sonangol); and Equatorial Guinea’s state-owned oil company, Petroléos de Guinea Ecuatorial (GEPetrol). Mace admitted he joined the conspiracy by authorizing payments in furtherance of the bribery scheme and deliberately avoided learning that those payments were bribes.
In particular, Mace maintained a spreadsheet reflecting payments to five individuals. Mace acknowledged that even though he was aware there was a high risk those individuals were Equatorial Guinean officials, he nevertheless authorized SBM to make over $16 million in payments to those individuals. Mace further continued a practice that was instituted before he became CEO by splitting payments to SBM’s Brazilian intermediary, that is, paying a portion of the intermediary’s commission to an account in Brazil and another portion of the agent’s commission to accounts in Switzerland held in the name of shell companies. Mace deliberately avoided learning the ultimate recipients of the payments that he authorized to the shell companies were Petrobras officials, he admitted.
According to admissions made in connection with Zubiate’s plea, from between 1996 and 2012, Zubiate and others used a third-party sales agent to pay bribes to foreign officials at Petrobras in exchange for those officials’ assisting SBM and SBM USA with winning lucrative offshore oil projects from Petrobras. Zubiate also admitted engaging in a kickback scheme with the bribe-paying sales agent for SBM and its SBM USA.
In November 2017, SBM entered into a $238 million dollar, three-year deferred prosecution agreement with the United States over its role in the conspiracy, while its subsidiary, SBM USA, pleaded guilty to one count of conspiracy to violate the FCPA.
HSI and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady and Trial Attorney Dennis R. Kihm of the Criminal Division’s Fraud Section are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The Department of Justice is grateful to Brazil’s Ministério Público Federal, the Netherlands Public Prosecution Service and Switzerland’s Office of the Attorney General and Federal Office of Justice for providing substantial assistance in gathering evidence during this investigation.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Off-Duty Border Patrol Agent Pleads Guilty to Starting 2017 Sawmill Fire and Agrees to Pay More Than $8 Million in RestitutionRead the Press Release
TUCSON, Ariz. – Today, Dennis Dickey, 37, of Tucson, Ariz., pleaded guilty to a misdemeanor violation of U.S. Forest Service regulations for igniting the Sawmill Fire, which caused more than $8 million worth of damage in April 2017. The Court scheduled a sentencing hearing for October 9, 2018.
On April 23, 2017, near Green Valley, Ariz., U.S. Border Patrol Agent Dickey, who was off-duty at the time, ignited a fire that spread to Coronado National Forest, federal land administered by the U.S. Forest Service. This fire was referred to as the “Sawmill Fire.” Dickey started the fire by shooting a rifle at a target. Dickey had placed Tannerite, a highly explosive substance, inside the target, intending for it to detonate when shot by a high-velocity firearm bullet. Dickey fired shots at the Tannerite target, ultimately causing an explosion that started a fire that spread and resulted in damage to more than 45,000 acres of land managed by the State of Arizona, the U.S. Forest Service, the Bureau of Land Management, and various private landholders. Dickey immediately reported the fire to law enforcement, cooperated, and admitted that he started the fire. The total losses attributable to the fire, including suppression costs and damage to land and landholdings, totaled more than $8 million.
In his plea agreement, Dickey agreed to a sentence of five years’ probation, and to make a public service announcement with the U.S. Forest Service concerning the cause of the Sawmill fire. Dickey agreed to pay restitution totaling $8,188,069. Dickey also agreed to make an initial payment of $100,000 toward the restitution judgment and monthly payments thereafter.
The investigation in this case was conducted by the U.S. Forest Service. The prosecution was handled by the U.S. Attorney’s Office for the District of Arizona, Tucson.
CASE NUMBER: 18-MJ-03295-DTF
RELEASE NUMBER: 2018-123_Dickey
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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.
North Las Vegas Man Charged for Kidnapping and Sexually Exploiting A 14-Year-Old Arizona GirlRead the Press Release
LAS VEGAS, Nev. – A North Las Vegas man who kidnapped a girl in Bullhead City, Arizona, then repeatedly sexually assaulted her at his house in North Las Vegas where he held her hostage for approximately one month, had his initial court appearance today, announced U.S. Attorney Dayle Elieson and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office.
Jimmy Carter Kim, 29, was arrested and appeared before U.S. Magistrate Judge Carl Hoffman. He is charged by a criminal complaint with one count of kidnapping, one count of sexual exploitation of children, and one count of possession of child pornography.
As alleged in the complaint, between November 1, 2015 and December 3, 2015, Kim offered a ride to and kidnapped a 14-year-old girl who was walking down the street in Bullhead City, Arizona. He drugged her, then drove her to his house in North Las Vegas, where he locked her in a bedroom. Kim repeatedly sexually assaulted her and took photos of the assaults with his iPhone. He also threatened to shoot her with a firearm if she attempted to leave the house. On about December 3, 2015, she was able to escape from the bedroom and contact law enforcement.
Based on the victim’s description of the suspect and the house, detectives with the North Las Vegas Police Department were able to identify and interview Kim. During a forensic examination of his iPhone, numerous images and videos of child pornography produced by Kim were found.
A preliminary hearing is scheduled for October 12, 2018. The maximum statutory penalty is life in prison and a $250,000 fine.
If you have information regarding Jimmy Kim, please contact the nearest FBI field office or local law enforcement. To remain anonymous, call Crime Stoppers at (702) 385-5555 or visit www.crimestoppersofnv.com, or contact the National Center for Missing & Exploited Children Cyber Tipline at www.cybertipline.org.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the FBI with assistance by the North Las Vegas Police Department. Assistant U.S. Attorneys Elham Roohani and Christopher Burton are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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North Adams Man Charged with Child ExploitationRead the Press Release
BOSTON - A North Adams man was charged in federal court in Springfield yesterday with child exploitation offenses.
Anthony K. Deordio, 43, was charged with one count of sexual exploitation of a minor, one count of distribution of child pornography, one count of receipt of child pornography, and one count of possession of child pornography. Deordio is currently in state custody on related charges. He will appear in federal court in Springfield at a later date.
Between November 2017 and March 2018, Deordio is alleged to have used a child to produce child pornography and distribute, receive and possess child pornography.
The charge of sexual exploitation of a minor provides for a minimum of 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release, and a fine of $250,000. The charges of receipt and distribution of child pornography each provide for a minimum of five years and up to 20 years in prison, a minimum of five years and up to a lifetime of supervised release, and a $250,000. The charge of possession of child pornography provides for a sentence of no greater than 10 years in prison, at least five years and up to a lifetime of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and North Adams Police Director Michael Cozzaglio made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nicholasville Men Sentenced for Social Media Threats Related to School Shooting HoaxRead the Press Release
LEXINGTON, Ky. – Two Nicholasville, Ky., men were sentenced today for using social media to harass and intimidate an acquaintance, with threats of a prospective shooting at a Jessamine County school.
United States District Judge Danny C. Reeves sentenced 18-year-old Tristan H. Kelly to 21 months in federal prison and 19-year-old Cody T. Ritchey to 27 months in federal prison. Kelly and Ritchey each pled guilty, in June 2018, to one count of cyberstalking. Kelly and Ritchey both admitted that they had worked together to create a Snapchat profile on February 17, 2018, using the name and picture of a third person who did not know about their actions. Kelly and Ritchey then used the profile to publish a series of posts suggesting that this third individual would use firearms to attack a Jessamine County public school, in February 2018. Among other posts, Kelly and Ritchey made references to the shooting that had occurred at Marjory Stoneman Douglas High School in Parkland, Florida, only days earlier.
Kelly and Ritchey also admitted that they used this Snapchat profile to send direct messages to K.S., an acquaintance of the two. Among other messages, Kelly and Ritchey told K.S. “you’re the reason im killin everybody make it stop,” and “send nudes and ill let you live.” As part of their plea agreements, Kelly and Ritchey both admitted that they understood these messages could reasonably be expected to cause substantial emotional distress.
Law enforcement immediately investigated the threats, identified Kelly and Ritchey as the source, and determined that the threats were a hoax.
“The defendants’ conduct was extremely serious, as reflected in the sentences imposed today by the Court,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “I commend the efforts of, and cooperation between, the local and federal law enforcement officers involved in the investigation. The defendants’ callous and alarming conduct, coming only days after the Stoneman Douglas High School shooting in Parkland, Florida, needlessly put people in fear of a similar tragedy and expended precious law enforcement resources. Deterring this type conduct is critical and we will continue to make that a priority for our Office.”
Under federal law, Kelly and Ritchey must each serve 85 percent of their prison sentences. Upon their release, they will each be under the supervision of the United States Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, Federal Bureau of Investigation; and Todd Justice, Chief of the Nicholasville Police Department, jointly announced the indictment. The investigation preceding the indictment was conducted by the Nicholasville Police Department and the Federal Bureau of Investigation. The United States was represented by Assistant U.S. Attorney Andrew Boone.
New Orleans Man Pleads Guilty to Seven Counts of Firearms and Narcotics ChargesRead the Press Release
U.S. Attorney Peter G. Strasser announced that TERRANCE MORGAN, age 27, of New Orleans, has pleaded guilty to federal firearms and narcotics violations.
According to court documents, MORGAN, a convicted felon, possessed firearms on four separate occasions between 2014 and 2017, in violation of Title 18, United States Code, Section 922(g). On January 13, 2017, MORGAN also possessed with the intent to distribute a synthetic opioid known as “U-47700,” in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), and possessed three firearms in furtherance of a drug trafficking crime on the same date. MORGAN also conspired with others to possess firearms in furtherance of a conspiracy to sell heroin.
The Court set sentencing in this matter for January 10, 2019. MORGAN faces, as to count two of the indictment, a maximum term of imprisonment of 20 years, a fine of $250,000, up to three years of supervised release after imprisonment, and a $100 special assessment. As to each of counts three through six, MORGAN faces, as to each count, a maximum term of imprisonment of 10 years, a fine of $250,000, up to three years of supervised release after imprisonment, and a $100 special assessment. As to count seven, MORGAN faces a maximum term of imprisonment of 20 years, a fine of $1,000,000, at least 3 years of supervised release after imprisonment, and a $100 special assessment. As to count eight, MORGAN faces a minimum of 5 years and a maximum of 20 years of imprisonment, up to 5 years supervised release after imprisonment, a fine of $250,000, and a $100 special assessment.
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.
U. S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the New Orleans Police Department, and the Louisiana State Police in investigating this matter. The case is being prosecuted by Assistant United States Attorneys Maria M. Carboni and Matthew R. Payne.
New Jersey Attorney Admits Role in Multimillion-Dollar Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A New Jersey attorney today admitted running a large-scale mortgage fraud scheme that involved properties in Jersey City, Clifton, Union, and elsewhere in New Jersey and caused losses of millions of dollars, U.S. Attorney Craig Carpenito announced.
Christopher Goodson, 45, of Newark, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of conspiracy to commit bank fraud.
According to the documents filed in this case and statements made in court:
From January 2011 through August 2017, Goodson, his co-defendant, Anthony Garvin, and others engaged in a short sale mortgage fraud conspiracy targeting various New Jersey properties with mortgages that were in default.
The conspirators arranged simultaneous fraudulent transactions on the same target property. In the first transaction, which involved the sale by the current owner, the conspirators convinced the financial institution holding the mortgage to accept the sale of the target property at a loss, usually to a buyer who was secretly a conspirator or an entity controlled by the conspiracy.
In the second transaction, the conspirators flipped the same target property from the first buyer to a second buyer, who typically obtained a mortgage from another financial institution using false loan applications, pay stubs, bank account statements and title reports provided by members of the conspiracy. As a result, the second transaction frequently closed for significantly more or even double the price of the first transaction.
Goodson admitted that he, Garvin, and others rigged the short sale process at each step in order to maximize the difference in price between the two transactions and keep the victim financial institutions from detecting the fraud.
For instance, Goodson concealed the fact that he played multiple roles in the short sale transactions, including allegedly generating false pre-approval letters from a New Jersey corporation he owned that purported to be a short-term lending company operating out of California. These letters were used to deceive banks into believing that the purchaser – typically a conspirator or entity controlled by Goodson – had the credit necessary for the transaction. Goodson also negotiated the fraudulent short sales with the banks, generated phony deeds that backdated the closing date of the first transactions, and even served as the closing attorney during some of the short sales.
Garvin was a real estate agent and investor who allegedly coordinated fraudulent transactions as part of the scheme. The charge against him remains pending; he is considered innocent unless and until proven guilty.
The conspirators disbursed the funds into various accounts they controlled to conceal their illegal activities and split the profits. In total, the conspiracy defrauded financial institutions out of millions of dollars.
The conspiracy to commit bank fraud count is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Jan. 29, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory Ehrie in Newark, postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and special agents of the Federal Housing Finance Agency (FHFA) – Office of Inspector General, under the direction of Special Agent in Charge Steven Perez in Newark, with the investigation
The government is represented by Assistant U.S. Attorneys David Feder and Zach Intrater, Executive Assistant to the U.S. Attorney, in Newark.
Defense counsel: John C. Whipple Esq., Morristown, New Jersey
New Castle Woman Charged with Defrauding Social SecurityRead the Press Release
PITTSBURGH, PA - A resident of New Castle, PA, has been indicted by a federal grand jury in Pittsburgh on charges relating to Social Security fraud, United States Attorney Scott W. Brady announced today.
The three-count indictment, returned on September 27, names Shawna Stelter, age 36, as the sole defendant.
According to the indictment, Stelter received $26,917.55 in Supplemental Security Income benefits to which she knew she was not entitled. Stelter is also charged with knowingly and willfully making a false statement to, and concealing information from, the Social Security Administration, claiming that her household consisted solely of herself and her children, when in fact, her husband was also part of her household.
The law provides for a maximum total sentence of 20 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Social Security Administration, Office of the Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mobile County Man Sentenced to 36 Months for Illegal Possession of AmmunitionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Steven Glenn Miller, a 46 year old resident of Mobile, Alabama was sentenced to 36 months for illegal possession of ammunition after being convicted of seven felonies.
According to a factual statement Miller signed in connection with his guilty plea, on June 14, 2018, on March 19, 2018, Mobile County deputies were investigating the theft of a stolen trailer and an ATV. During the course of the investigation, Miller was arrested. A search of Miller’s person, incident to his arrest, located a magazine loaded with two bullets. Miller admitted that he put the bullets in his pocket. At that time, Miller had been convicted of seven felonies, namely, Felon in Possession of a Firearm on March 22, 2005, in the United States District Court, Southern District of Alabama; Possess/Receive Controlled Substance on July 9, 2015, in the Circuit Court of Mobile County, Alabama; Burglary Third Degree on July 9, 2014, in the Circuit Court of Mobile County, Alabama; Theft of property, First Degree on August 19, 2004, in the Circuit Court of Mobile County, Alabama; Breaking/Entering Vehicle on August 19, 2004, in the Circuit Court of Mobile County, Alabama; Theft of Property First Degree on August 19, 2004, in the Circuit Court of Mobile County, Alabama; Possess/Receive Controlled substance on December 9, 2012, in the Circuit Court of Mobile County, Alabama.
Michael Devane Overton Sentenced Following Guilty Plea to a Federal Firearm ChargeRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Michael Devane Overton of Jackson, Alabama was sentenced to one year, and one day imprisonment. Overton’s sentencing followed entry of a May 2018 guilty plea to a charge of prohibited person in possession of a firearm. The sentence imposed by Chief United States District Court Judge Kristi K. Dubose was a variance from the advisory sentencing guideline range of 30-37 months. The term of imprisonment is to be followed by a three year term of supervised release with the first year to be served on home detention with location monitoring. During the term of supervised release, Overton is prohibited from having inappropriate contact with females by any means, and must provide access to check his internet devices at any time requested by his probation officer.
Overton’s guilty plea included his admission that he was committed to a mental institution, by Order of the Clarke County Probate Court in June 2013. In September 2017, the Mobile Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives began working with the Jackson, Alabama Police Department on an investigation of Overton’s July 2017, purchase of a 12 gauge shotgun from a local federal firearms licensee, and his subsequent attempt to purchase several other firearms. On September 22, 2017, a state search warrant was executed at Overton’s residence in Jackson. During the execution of the search warrant three firearms were recovered from his bedroom, along with firearm magazines and ammunition.Possession of a firearm by a prohibited person, in this instance an individual who has been previously committed to a mental institution, is a violation of Title 18, United States Code Section 922(g)(4).
This case arose from a referral by the Jackson, Alabama Police Department to the Mobile Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives who completed the investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
Man receives life sentences in string of Walmart robberiesRead the Press Release
Indianapolis-United States Attorney Josh Minkler announced today that a Wynn, Arkansas, man was sentenced for his role in a robbery spree during the summer of 2016. Maurice Greer, 54, was sentenced by U.S. District Judge Sarah Evans Barker to three concurrent life sentences plus 32 years.
“Reducing violent crime remains a top priority in my office,” said Minkler. “Those who choose to terrorize our communities and use firearms to further their crimes will be held accountable. The court’s life sentence in this case reflects the seriousness of Mr. Greer’s actions and is representative of the community’s outrage with these types of violent acts.”
Between June and September of 2016, Greer, along with his cousin Christopher Davis, 46, his step-brother Darryl Williams, 49, Tyrone Townsell, 47, and former Walmart employee Deidre Orkman, 52, conspired to rob the Walmart on West 10th Street in Indianapolis twice, and the Kokomo Walmart once. In each of the robberies a firearm was brandished and Walmart employees were bound with zip ties and duct tape. In total, the group netted nearly $250,000 from the three robberies.
Davis, Greer, and Townsell were arrested in Indianapolis several hours after the September 14, 2016, Kokomo Walmart robbery. Nearly $100,000 in cash was recovered from the vehicle they were riding in at the time of their arrest, and during a subsequent search of Davis’ apartment on Kennedy Lane in Indianapolis.
Four of the six members of the conspiracy pled guilty and testified against Davis and Greer, who were convicted on all counts at trial in March 2018. Greer was the last member of the conspiracy to be sentenced by Judge Barker.
The other sentences imposed by Judge Barker were:
- May 11, 2018, Darryl Williams was sentenced to 300 months (25 years) imprisonment, 3 years of supervised release, and ordered to pay $34,032 in restitution;
- June 7, 2018, Tyrone Townsell was sentenced to 188 months (15 years) imprisonment, 3 years of supervised release, and ordered to pay $90,000 in restitution;
- June 14, 2018, Deidre Orkman (former Walmart Assistant Manager) was sentenced to 36 months imprisonment, 2 years of supervised release, and ordered to pay $93,000 in restitution;
- June 22, 2018, Fontella Pearson (Davis’ wife) was sentenced to 9 months of probation after she was convicted of lying under oath in an effort to exonerate Davis.
- July 17, 2018, Christopher Davis was sentenced to 684 months (57 years) imprisonment, 5 years of supervised release, and ordered to pay $138,066.02 in restitution.
According to Assistant United States Attorneys Matthew J. Rinka and Bradley P. Shepard, who prosecuted this case for the government, Greer was also sentenced to an additional, concurrent, 15 year term of imprisonment for possession of a firearm by a felon, and ordered to pay $138,066.02 in restitution to Walmart.
This case was jointly investigated by the Indianapolis Metropolitan Police Department Commercial Robbery Unit and the FBI Violent Crimes Task Force, with assistance from the Kokomo Police Department.
“The joint investigation and prosecution led to this stiff federal sentence. The hard work and dedication of the agents and Task Force Officers of the FBI's Violent Crimes Task Force goes to the heart of our mission,” said Grant Mendenhall, Special Agent in Charge of the FBI's Indianapolis Division. “We continue to prioritize aggressive investigations targeting serious violent offenders who use weapons to commit these crimes.”
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who commit violent crimes involving firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.3
Man Sentenced to 108 Months in PrisonRead the Press Release
HAMMOND – Jorge Esqueda, 24, of East Chicago, Indiana, was sentenced by U.S. District Court Judge Philip Simon after pleading guilty to racketeering conspiracy, announced U.S. Attorney Kirsch.
Esqueda was sentenced to 108 months in prison.
According to documents in the case, Esqueda entered a guilty plea for conspiracy to participate in racketeering activity for his role and participation in the Latin Kings Street Gang. As part of his plea agreement, Esqueda admitted that, as a member of the Latin Kings, he was a manager or supervisor of criminal activity, that he was responsible for between 3.5 and 5 kilograms of cocaine as drug weight relevant conduct, and that he possessed a firearm in connection with his offense.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office has also provided assistance. The Latin King case is being prosecuted by Assistant U.S. Attorneys David J. Nozick and Dean Lanter of the Northern District of Indiana along with the Department of Justice Trial Attorney Joseph Cooley.
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Man Sentenced for Coercion and Enticement of MinorRead the Press Release
ALEXANDRIA, Va. – A Florida man was sentenced today to 10 years in prison for using Kik, an instant messaging mobile application, to coerce and entice a minor.
According to court documents, in late 2016, Anthony C.A. Martin, 27, of Pensacola, began communicating via Kik with a 15 year-old female living in Alexandria. In March 2017, over Kik, they discussed Martin traveling from Ohio, where he was living at the time, to Virginia to have sexual intercourse with the minor victim and then transport her back to Ohio. Days later, Martin met the minor victim in a room at a hotel in Alexandria, where the two had sex before driving to Ohio. There, Martin used Kik to ask the minor victim to send him explicit photographs and videos. Later in June 2017, after the minor victim had returned to Virginia, Martin again traveled to Alexandria, where he met the minor victim at a different hotel and recorded their sexual encounter with his cell phone and without the minor victim’s consent.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Michael L. Brown, Alexandria Chief of Police, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Alexander E. Blanchard and Kellen S. Dwyer prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-238.
Man Pleads Guilty to Aiming Laser Pointer at Two Commercial AircraftRead the Press Release
ALEXANDRIA, Va. – A Marshall man pleaded guilty yesterday to aiming the beam of a laser pointer at two aircraft in flight.
According to court documents, Nicholas Pifer, 45, struck the cockpit of two commercial aircraft with the beam of a laser pointer. Both aircraft were in the process of landing at Washington Dulles International Airport, but managed to land safely. All four pilots reported seeing the cabin illuminated with a green light.
Pifer pleaded guilty to one count of aiming a laser pointer at an aircraft and faces a maximum penalty of five years in prison when sentenced on December 21, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Michelle McVicker, Principal Assistant Inspector General for Investigations at the U.S. Department of Transportation, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney David A. Peters and Special Assistant U.S. Attorney Evan Clark are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-282.
Man Charged with Violations of Federal Gun Control Act, Federal Narcotics Laws, and Obstruction of JusticeRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that KENDALL BARNES, age 22, of Chalmette, was charged in a five-count indictment on September 27, 2018 by a federal grand jury.
The Indictment charges BARNES, a convicted felon, with two counts of felon in possession of a firearm. If convicted of these charges, BARNES faces a term of imprisonment of up to 10 years, a fine of up to $250,000, and up to three years of supervised release.
The Indictment charges BARNES with possession with intent to distribute heroin. If convicted of this count, BARNES faces a term of imprisonment of 20 years, a fine of up to $1 million, and at least three years of supervised release.
The Indictment also charges that BARNES was in possession of a firearm in furtherance of a drug trafficking crime. If convicted of this count, BARNES faces a term of imprisonment of 5 years to life, a fine of $250,000, and up to five years of supervised release.
Additionally, the Indictment charges BARNES with obstruction of justice. If convicted of this count, BARNES could face up to 10 years of imprisonment, a fine of $250,000, and up to three years of supervised release.
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.
U.S. Attorney Strasser reiterated than an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation New Orleans Violent Crimes Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Maria M. Carboni is in charge of the prosecution.
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Maine Woman Pleads Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Shannon Battle, 39, of Bangor, Maine pleaded guilty in federal court on Thursday to participating in a fentanyl trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on July 20, 2017, a New Hampshire State Police trooper patrolling I-95 stopped a vehicle in which Battle was a passenger, for operating with a defective center brake light. Troopers ultimately discovered that the defendant was concealing a large package of suspected narcotics on her person. The package was later found to contain 131 grams of fentanyl. During questioning, the defendant admitted to having travelled to Waterbury, Connecticut to pick up the fentanyl, which she was transporting to sell in the Bangor, Maine area.
Battle is scheduled to be sentenced on January 2, 2019.
“Those who bring fentanyl into New Hampshire should expect that they will be prosecuted,” said U.S. Attorney Murray. “We will continue to do all that we can to stop the flow of this deadly drug into the Granite State. I want to thank the New Hampshire State Police for preventing this fentanyl from being distributed.”
This matter was investigated by the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
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Louisville Man Sentenced for Attempted Distribution of Obscene Material to a MinorRead the Press Release
LOUISVILLE, Ky. – U.S. District Judge Claria Horn Boom sentenced Scott Louis Craven to 48 months in federal prison followed by 20 years of Supervised Release this week for distribution of obscene material to a person he believed to be a 15-year-old girl, announced United States Attorney Russell M. Coleman. Craven will be required to register as a sex offender upon his release from prison.
According to court records and the plea agreement, during April 2017, an investigator with the Kentucky Attorney General’s Office – Department of Criminal Investigations conducted an online undercover investigation. During that investigation, the investigator (in his undercover capacity), was contacted by Craven while both were using the social media platform KIK. The investigator identified himself as a 15-year-old girl from Louisville. During the online conversations, particularly on April 28, 2017, Craven sent the undercover investigator nude images of himself along with sexually graphic videos.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky Office of Attorney General’s Department of Criminal Investigations conducted the investigation with assistance from the Louisville Metro Police Department and the United States Secret Service.
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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.
Lending Club Agrees to Pay $2 Million Penalty to Resolve Investigation into Its Lending PracticesRead the Press Release
lendingclub_settlement_agreement.pdf SAN FRANCISCO – Peer-to-peer lending company LendingClub Corporation of San Francisco, Calif., has agreed to pay a civil penalty of $2 million to resolve allegations that it violated the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), announced United States Attorney Alex G. Tse, Special Agent in Charge John F. Bennett of the Federal Bureau of Investigation San Francisco Field Office, and Federal Deposit Insurance Corporation (FDIC), Office of Inspector General Special Agent in Charge Wade V. Walters.FIRREA authorizes the federal government to seek civil penalties against companies and individuals that violate various predicate criminal offenses affecting federally insured financial institutions, including false statements to financial institutions, bank fraud, and wire fraud. In this case, the United States alleged that from January 2009 to September 2010, LendingClub made misrepresentations to its FDIC-insured loan originator, WebBank. Further, the United States alleged that due to Lending Club’s misrepresentations, WebBank originated over 200 loans to borrowers who did not satisfy WebBank’s credit requirements. The government alleged that LendingClub made these misrepresentations fraudulently to increase the volume of loans available for investment on its platform and to meet its monthly loan origination goals.
“As technology continues to provide more creative means for financial transactions, so, too, must financial technology companies be careful to abide by the rules that ensure stability and fairness in these emerging markets.” said U.S. Attorney Tse. “We will vigorously investigate wrongful conduct in this industry.”
“The FBI is committed to protecting the American people by investigating violations of law by all entities, including financial institutions,” said Special Agent in Charge John F. Bennett of the FBI San Francisco Division, “The FBI prioritizes combatting white-collar crime and will not tolerate any business or institution that engages in false representation for their own benefit and does not abide by the law."
“This settlement shows that allegations of misconduct to advance personal or corporate goals will be vigorously investigated and pursued,” said FDIC OIG Special Agent in Charge Wade Walters. “Law enforcement agencies worked together to address these allegations and obtain a settlement in the pursuit of justice.”
The settlement was the result of a coordinated effort between the U.S. Attorney’s Office for the Northern District of California and the Securities and Exchange Commission, with investigative support from the FBI and FDIC-OIG. Assistant U.S. Attorney Kimberly Friday is handling the matter on behalf of the U.S. Attorney’s Office for the Northern District of California, with substantial assistance provided by Assistant U.S. Attorney Lila Bateman from the U.S. Attorney’s Office for the District of Colorado and Assistant U.S. Attorney Michael Sew Hoy from the U.S. Attorney’s Office for the Central District of California.
The claims resolved by this settlement are allegations only, and there has been no admission of liability.
Kalispell Regional Healthcare System to Pay $24 Million to Settle False Claims Act AllegationsRead the Press Release
Montana-based Kalispell Regional Healthcare System (KRH) along with six subsidiaries and related entities – Kalispell Regional Medical Center (KRMC), HealthCenter Northwest LLC (HealthCenter), Flathead Physicians Group LLC (Flathead), Northwest Horizons LLC (NH), Northwest Orthopedics & Sports Medicine LLC (NOSM), and Applied Health Services Inc. (AHS), (collectively, “KRH entities”) – have agreed to pay $24 million to resolve allegations that they violated the False Claims Act by paying physicians more than fair market value, and by conspiring to enter into arrangements that improperly induced referrals, the Department of Justice announced today.
“Financial arrangements that improperly compensate physicians who make referrals to a hospital drive up the cost of health care services for everyone,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “This settlement demonstrates the Department’s determination to enforce federal laws aimed at preventing conflicts of interest between the financial interests of hospitals and physicians and the best interests of the patients they serve.”
The government alleged that the KRH entities had arrangements with referring physicians that violated the Medicare physician self-referral prohibition, commonly known as the Stark Law, and other arrangements that also violated the Anti-Kickback Statute. The Stark Law prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper compensation arrangement. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. Both the Anti-Kickback Statute and the Stark Law are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based only on the best interests of the patient.
Between 2010 and 2018, the KRH entities allegedly violated the Stark Law by paying excessive full-time compensation to more than 60 physician specialists – many of whom worked far less than full-time. Additionally, HealthCenter, Flathead, NH, NOSM, and AHS allegedly conspired to violate the Anti-Kickback Statute by paying excessive compensation to physicians employed by KRH, KRMC, and other KRH entities to induce referrals to HealthCenter, and by providing administrative services to HealthCenter at below fair market value to reduce expenses and increase profits distributed to physician investors at Flathead, an owner of HealthCenter, also to induce referrals to HealthCenter.
“Quality healthcare is a critical need of all Montanans, but paying extra to physicians to induce referrals improperly raises the cost of that healthcare and must stop,” said United States Attorney for the District of Montana Kurt Alme. “I would like to thank the team that worked hard to bring this to a quick and successful resolution, which is the largest False Claims Act recovery in the District of Montana, including members of the U.S. Department of Justice and U.S. Attorney’s Office, as well as agents with the Department of Health and Human Services-Office of Inspector General and the Federal Bureau of Investigation.”
“Our office will continue to focus our efforts on those who make improper payments to physicians for the purpose of inducing referrals in order to ensure the integrity of HHS programs,” said Steve Hanson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, Kansas City Region.
The settlement resolves allegations originally brought in two lawsuits filed by Jon Mohatt, a former Chief Financial Officer for KRH’s Physicians Network, under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblower will receive $5,411,521 million as his share of the recovery in the two consolidated cases.
The case was handled by the U.S. Attorney’s Office for the District of Montana, the Justice Department’s Civil Division, and the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
The lawsuits are captioned United States ex rel. Mohatt v. Kalispell Regional Healthcare System et al., Civ. No. 16-125 and United States ex rel. Mohatt v. HealthCenter NW, LLC et al., Civ. No. 18-80, and are consolidated under Civ No. 18-80. The claims settled by this agreement are allegations only; there has been no determination of liability.
Justice Department Hosts Cybersecurity Industry RoundtableRead the Press Release
The Justice Department’s Criminal Division hosted a cybersecurity roundtable discussion yesterday on the challenges in handling data breach investigations. Assistant Attorney General Brian A. Benczkowski of the Criminal Division delivered opening remarks and served as moderator for the event. Deputy Attorney General Rod J. Rosenstein, Assistant Attorney General John C. Demers of the Department’s National Security Division and officials from the FBI, U.S. Secret Service, the White House’s National Security Council and U.S. Department of Homeland Security also delivered remarks at the event. The audience included many of the nation’s leading private-sector practitioners in the field of data breach response and representatives from premier cybersecurity and incident response firms in the country.
The Criminal Division held its inaugural cybersecurity roundtable in 2015, shortly after the creation of the Cybersecurity Unit within the Computer Crime and Intellectual Property Section (CCIPS). The goal of the first roundtable was to spur a conversation within the legal community about how the government can work more effectively with companies, firms, and organizations to prosecute and prevent data breaches. Three years later, the Department continues to exchange ideas with and look to the private sector’s expertise and insight about how to improve cooperation between law enforcement agencies and data breach victims.
In February of this year, Attorney General Jeff Sessions established a Cyber-Digital Task Force, which published its first report in July. The report provides a comprehensive assessment of the cyber-enabled threats confronting the nation, and catalogs ways in which the Justice Department combats those threats, including by partnering with the private sector.
“Public-private partnerships addressing cybercrime play a critical role in our efforts to hold criminals accountable for data breaches,” said Deputy Attorney General Rosenstein. “We depend on the private sector to help us maintain the rule of law in cyberspace at every stage of our work. That includes working together to obtain critical evidence for investigations and trials, and collaborating on developing the legal authorities needed to protect our 21st century economy. Today’s discussion aims to share best practices, common challenges, and emerging threats, and identify how the Department of Justice and our law enforcement partners can help private industry to protect Americans from harm while safeguarding privacy. Through roundtables like this and the continuing collaboration they fuel, we will meet emerging threats, protect America’s technological innovations, and preserve public safety and security.”
“The Criminal Division has long been recognized for its innovative and aggressive pursuit of the most sophisticated cybercriminals,” said Assistant Attorney General Benczkowski. “Active engagement with the private sector through events like the Cybersecurity Industry Roundtable is essential to our effectiveness as prosecutors because it allows us to draw upon a broad range of experience to get better at what we do. The Criminal Division’s commitment to fighting cybercrime is unwavering, and we look forward to continued close cooperation in that fight with our counterparts in the private sector.”
The Criminal Division created the Cybersecurity Unit within CCIPS in December 2014 to help channel CCIPS’s expertise and experience combatting cybercrime into the prevention of cybercrime. The Unit’s contributions during its brief existence have included issuing groundbreaking guidance to help organizations create vulnerability disclosure programs to improve detection of cyber vulnerabilities. The Unit’s outreach to the private sector has included participation by members of CCIPS in well over 100 cybersecurity events since 2015, such as RSA, Black Hat, DEFCON, and International CES, which has helped the Unit build relationships with and gather input from incident responders, potential victims, and key information security experts. This input has been put to good use. The Criminal Division released a document at the first roundtable providing guidance to help organizations prepare for a cyber incident, called “Best Practices for Victim Response and Reporting Cyber Incidents.”
As part of Thursday’s event, the Cybersecurity Unit released a new document providing even more comprehensive guidance that reflects input the Unit received during its outreach efforts. The revised guidance addresses new issues like working with incident response firms, cloud computing, ransomware, and information sharing. It is an example of the type of assistance that the Cybersecurity Unit was designed to provide—to help elevate cybersecurity efforts and build better channels of communication between law enforcement and industry.
Inmate Sentenced to Federal Prison for Smuggling Heroin into Goose Creek Correctional CenterRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an inmate has been sentenced in federal court for his role in a scheme to smuggle heroin into the Alaska Department of Corrections (DOC) Goose Creek Correctional Center (GCCC) for distribution to inmates in April 2016.
Spencer Daniel Johnson, 25, who was an inmate at GCCC at the time of the offense, was sentenced yesterday by U.S. District Judge Sharon L. Gleason, to serve 3.5 years in federal prison, after previously pleading guilty to possession with the intent to distribute a controlled substance. Johnson’s federal sentence is to be served consecutively to the 20-year sentence he is currently serving from an unrelated State of Alaska murder conviction in 2015.
According to court documents, Johnson and co-defendant Kalani Lemauga Maalona were both inmates at GCCC, and co-defendant Heaven Leigh Erick was Maalona’s girlfriend who was not in custody at the time. Between April 1, 2016, and April 8, 2016, Johnson worked with Maalona and Erick to smuggle drugs into GCCC for distribution to other inmates. Through manipulation, Johnson convinced a female associate, identified as “L.B.” in court documents, to deliver a package of heroin to Johnson during an in-person “contact” visit at GCCC on April 8, 2016. L.B., age 26, was an associate of Johnson’s, who had no criminal history, did not drive, and did not live independently due to an intellectual disability.
Johnson and Maalona placed a series of recorded jail calls to coordinate the drug delivery. By April 7, 2016, Johnson had provided L.B.’s name and number to Maalona. On an April 7, 2016, jail call to Erick, Maalona mentioned L.B. by name, provided L.B.’s phone number to Erick, and instructed Erick – in coded language – to obtain drugs, package them, and to give L.B. a ride to GCCC the next day. On April 8, 2016, Johnson provided directions to L.B. regarding what to wear in order to conceal the drugs, told her to meet with associates who would drive her to GCCC, and said he would provide her further guidance when the two met at GCCC in person. Despite L.B. voicing hesitation, Johnson coaxed her into following through.
The evening of April 8, 2016, Erick drove L.B. to GCCC, and L.B. met with Johnson. When Johnson hugged L.B., he reached inside the sleeve of L.B.’s shirt where Erick had told L.B. to hide the drugs, and obtained the package. During a brief exchange that followed, Johnson told L.B. she was a “good girl” for carrying out his instructions and assured her nothing would happen to her as long as everything went smoothly. Although Erick could have proceeded directly to her secured visit with Maalona, she stood and watched the drug delivery. GCCC correctional officers quickly observed the contraband exchange, and ordered Johnson to keep his hands on the table. Johnson refused to do so, and before the contraband could be seized, Johnson swallowed the package of drugs he obtained from L.B.
Over the next few days, Johnson refused to surrender the package to DOC personnel. On April 11, 2016, the drug package was surgically removed from Johnson’s body at a local hospital. Laboratory analysis revealed the package contained nearly 20 grams of heroin. Johnson admitted that he was paid $5,000 to smuggle the heroin into GCCC for distribution.
At the sentencing hearing, Judge Gleason noted the seriousness of Johnson’s offense due to the fact that he planned to distribute the drugs inside GCCC, the quantity of heroin Johnson’s crime involved, and that Johnson had involved L.B. in the scheme. Judge Gleason underscored the need to deter the flow of drugs into the prison system.
Kalani Lemauga Maalona, 32, is scheduled to be sentenced on Oct. 9, 2018, at 9:30 AM. Heaven Leigh Erick, 29, is scheduled to be sentenced on Oct. 26, 2018, at 2:00 PM. Both previously pleaded guilty to drug conspiracy, as charged in the indictment. Erick also pleaded guilty to a two-count information, which charged her with possessing heroin and cocaine with the intent to distribute the drugs and being a felon in possession of a firearm in Fairbanks one month after the April 8, 2016, GCCC offense.
The Federal Bureau of Investigation (FBI) conducted the investigation, with assistance from DOC and the Alaska State Troopers Western Alaska Alcohol and Narcotics Team (WAANT), leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Andrea W. Hattan.
INTERPOL Washington Attends 12th Annual International Intellectual Property (IP) Crime ConferenceRead the Press Release
Held September 25-26, the International Law Enforcement IP Crime Conference sought to shape effective enforcement strategies in fighting international property violations. INTERPOL Washington—the U.S. National Central Bureau—was represented by the Assistant Director for Transnational Crime, Paul Layman.
The conference participants used operational case studies, best practices, and industry perspectives to address key IP issues related to artificial intelligence, crypto currencies, organized crime, money laundering, and free trade zones. The United States estimates the costs of intellectual property theft to the U.S. economy to be as high as $600 billion per year. These thefts damage American companies and threaten national security.
“The IPR conference provides INTERPOL Washington an opportunity to collaborate with our law enforcement counterparts across the globe to address international cooperation in enhancing international property protection, said Layman. “Sharing best practices in this crucial area of transnational crime will enable us to better support our U.S. law enforcement partners as they fight intellectual property crimes.”
Co-organized by the Dubai Police, the UAE Ministry of Interior and INTERPOL, in partnership with UL (Underwriters Laboratories), the International AntiCounterfeiting Coalition and the Emirates IP Association (EIPA), this gathering marked the first time the conference was held in the Middle East.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
INTERPOL Washington was one of the participants in the recent International IP Crime ConferenceHumboldt Woman Pleads Guilty to Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine pled guilty September 27, 2018, in federal court in Sioux City.
Lisa Marie Stock, 31, from Humboldt, Iowa, was convicted of conspiracy to distribute methamphetamine.
At the plea hearing, Stock admitted her involvement in a conspiracy that distributed at least 1500 grams of mixed methamphetamine from January 2018 through February 2018. During a traffic stop of a vehicle Stock was driving on February 6, 2018, law enforcement seized over 800 grams of actual (pure) methamphetamine and three firearms, including a stolen AR-15 rifle with an extra capacity magazine. Stock admitted she and another possessed the methamphetamine with intent to distribute it and aided and abetted another’s possession of firearms during the time of the conspiracy.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Stock was released on bond previously set. Stock faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and five years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Fort Dodge Police Department, Webster County Sheriff’s Office, Humboldt County Sheriff’s Office, and the Iowa Division of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3004. Follow us on Twitter @USAO_NDIA.
Honduran National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that JOSE CARLOS ESTRADA-MEZA, age 26, was charged today in a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, JOSE CARLOS ESTRADA-MEZA (“ESTRADA”), reentered the United States after he was previously deported on August 22, 2014. If convicted, ESTRADA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Strasser reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
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Guilty Jury Verdict for Kouts ManRead the Press Release
SOUTH BEND – Michael Thomas, 41 years old, of Kouts, Indiana, was found guilty after a four-day trial before U.S. District Court Judge Jon E. DeGuilio, announced U. S. Attorney Thomas L. Kirsch II.
According to documents in this case, a grand jury charged Thomas in a four count indictment alleging that Thomas devised a scheme to defraud insurance companies. The indictment alleged that he and others took out insurance policies on several residences near North Judson, Indiana, that he owned, shortly before each residence burnt due to arson. The charged fires occurred in 2004, 2010, 2012 and 2013. He and others received over $600,000 from the insurance companies.
Mr. Thomas will be sentenced on January 17, 2019.
The case was investigated by the United States Postal Inspection Service and prosecuted by Assistant United States Attorney Jesse Barrett.
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Greenwich Man Sentenced to Prison for Tax EvasionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PASQUALE F. FURANO, 48, of Greenwich, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 12 months of imprisonment, followed by one year of supervised release, for tax evasion.
According to court documents and statements made in court, FURANO is the sole owner of Pasquale Furano Landscaping, which generated business income by providing landscaping and snowplowing services to approximately 150 to 200 commercial and residential customers in Fairfield County, Connecticut, and Westchester County, New York. For the 2009 through 2013 tax years, FURANO underreported more than $2.5 million in gross receipts on his federal tax returns. For those five years, FURANO falsely reported total taxable income of $264,697 when his actual total taxable income was $1,751,727. Consequently, he only paid a total of $44,213 in federal taxes when he actually owed an additional $540,182.
The investigation revealed that FURANO evaded the payment of his federal taxes by negotiating approximately 2,436 client checks, totaling approximately $1,295,990.23, at the bank for cash rather than depositing the checks into his business accounts, sometimes cashing up to 38 checks in one day. FURANO also did not disclose to his tax return preparer his receipt of cashed client checks and other deposited client checks.
On October 16, 2014, IRS special agents conducted a court-authorized search of FURANO’s residence and seized handwritten business records of his actual gross receipts and $613,842 in cash.
Prior to his sentencing, FURANO paid the IRS $1,099,471.87, which represents all of the back taxes he owed for the 2009 through 2013 tax years, plus interest and penalties.
FURANO also has paid the Connecticut Department of Revenue Services (DRS) $112,360 in sales tax he collected from his customers from 2009 to 2013, but did not pay to the DRS.
On March 15, 2018, FURANO pleaded guilty to one count of tax evasion.
FURANO, who is released on bond, was ordered to report to prison on November 2, 2018.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Peter S. Jongbloed.
Greensburg Physician Charged with Illegally Distributing Suboxone, Health Care FraudRead the Press Release
PITTSBURGH – A Greensburg physician has been indicted by a federal grand jury in Pittsburgh on charges of distribution of buprenorphine, a Schedule III controlled substance, outside the usual course of professional practice; using and maintaining a drug-involved premises; health care fraud; and money laundering, United States Attorney Scott W. Brady announced today.
The 25-count indictment, returned yesterday, named Nabil Jabbour, 67, a physician who practices in Greensburg and Connellsville, Pennsylvania, as the sole defendant.
According to the indictment, between July 27, 2016, and December 13, 2016, Jabbour distributed buprenorphine—also known as Suboxone, Subutex, or Zubsolv—on a total of 17 occasions, outside the usual course of professional practice and not for a legitimate medical purpose. The indictment further alleges that between January 2014, and December 2016, Jabbour operated the two locations of his medical practice as drug-involved premises. Jabbour is also charged with defrauding Medicare and Medicaid through his illegal dispensing practices, which resulted in the health care programs covering costs associated with fraudulent buprenorphine prescriptions. Finally, the indictment charges Jabbour with money laundering based on cash transactions in excess of $10,000 that he initiated at the Meadows Casino in Washington, Pennsylvania, on five occasions between July 26, 2015, and July 25, 2016.
Jabbour faces a maximum sentence of 10 years’ imprisonment and a fine of $500,000 for each distribution count; a maximum sentence of 10 years’ imprisonment and a fine of $500,000 for each drug-involved premises charge; a maximum sentence of 10 years’ imprisonment and a fine of $250,000 for the health care fraud charge, and a maximum sentence of 10 years’ imprisonment and a fine of $250,000 for each money laundering charge. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing. The Pennsylvania State Police, the Pennsylvania Office of the Attorney General – Narcotics Unit, the Westmoreland County Sheriff’s Office and the Greensburg Police Department also provided assistance.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Government Settles $1.2 Million Lawsuit Against Florida Compounding Pharmacy and Its Owner for Excessive Charges to TRICARERead the Press Release
Tampa – U.S. Attorney Maria Chapa Lopez announces that the United States has settled allegations that a Tampa-based compounding pharmacy, now-defunct RS Compounding, LLC, and its owner, Renier Gobea, knowingly billed TRICARE excessive prices for compounded prescriptions. In reaching this settlement, the parties resolved allegations that, between January 1, 2012, and January 31, 2014, Gobea and RS Compounding charged TRICARE at least 2,000 percent more for drugs than they charged cash-paying customers, in violation of the False Claims Act.
TRICARE, the health care program for uniformed service members and their families, prohibits pharmacies from charging TRICARE more than the general public. Gobea and RS Compounding charged TRICARE vastly more than they charged the public, in some cases over 10,000 percent more. When Gobea and RS Compounding determined that this practice violated TRICARE policy in January 2014, they made mere prospective changes and did not return the profits secured by the overcharges. In an ability-to-pay settlement, the government agreed to accept $1.2 million to resolve these allegations.
TRICARE’s costs for compounded drugs rose from $5 million in 2004 to $514 million in 2014 and $1.75 billion in fiscal year 2015. To date, the U.S. Attorney’s Office for the Middle District of Florida has pursued numerous actions involving fraud associated with compounding pharmacies, resulting in over $57 million in settlements.
“This case is part of our long-standing efforts to hold compounding pharmacies accountable,” said U.S. Attorney Chapa Lopez. “We will continue to combat unscrupulous practices in all forms, especially those that harm or interfere with the care received by our service members and their families.”
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service and its law enforcement partners to ensure that medical service providers do not unjustly enrich themselves by wasting and diverting precious taxpayer dollars. DCIS protects and preserves the integrity of TRICARE, a vital DoD program serving U.S. service members, retirees, and their families,” said Special Agent in Charge John F. Khin, Southeast Field Office.
This lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they discover evidence that defendants have submitted false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in this case. The case is captioned United States ex rel. McKenzie Stepe v. RS Compounding LLC, Renier Gobea, Case No. 8:13-cv-3150-T-33AEP (M.D. Fla.). McKenzie Stepe filed this qui tam case, and, although she passed away during the pendency of the case, her estate will receive $264,000 as part of the settlement.
The government’s complaint in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The investigation was conducted by TRICARE, the U.S. Department of Health and Human Services Office of Inspector General, and the U.S. Attorney’s Office for the Middle District of Florida. It was handled by Assistant U.S. Attorneys Shea Gibbons and Sean Keefe.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Fort Wayne Man Sentenced to 180 Months in PrisonRead the Press Release
FORT WAYNE – Charles McCreary, age 27, of Fort Wayne, Indiana, was sentenced by U.S. District Court Chief Judge Theresa Springmann after pleading guilty to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
McCreary was sentenced to 180 months in prison followed by 2 years of supervised release.
According to documents in the case, in January 2017, McCreary was in possession of a .40 caliber firearm after having three prior felony convictions in Allen County Court. These three convictions qualify him as an armed career criminal.
This case was investigated by the ATF, with the assistance of the Fort Wayne Police Department and prosecuted by Assistant United States Attorney Stacey R. Speith.
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Former State Senator, RI Businessman Pleads Guilty to Bank Fraud, Tax CrimesRead the Press Release
PROVIDENCE, RI – Former Rhode Island State Senator and businessman James E. Doyle, III, 46, of Pawtucket, today pleaded guilty in U.S. District Court in Providence to thirty-one counts of bank fraud and one count each of filing a false tax return and failing to file a tax return.
Appearing before U.S. District Court Judge William E. Smith, Doyle admitted to the Court that as owner of Doyle Respiratory, LLC and Doyle Sleep Solutions, LLC, he engaged in $74 million dollars in worthless bank transactions executed in check-kiting schemes through bank accounts he controlled at Bristol County Savings Bank, Alliance Blackstone Valley Federal Credit Union (ABVFCU) and Santander Bank. Doyle admitted that he executed the scheme through the use of checks, cash withdrawals, ATMs electronic transfers and ACH transfer payments.
Doyle’s guilty plea is announced by United States Attorney Stephen G. Dambruch, Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell, and Special Agent in Charge of the FBI Boston Division Harold H. Shaw.
Doyle admitted to the Court that he accomplished the check-kiting scheme by writing checks from accounts he knew were not backed by sufficient funds and depositing those checks into different accounts to cover daily overdrafts in that account. Simultaneously, he wrote checks out of the second account and deposited those checks back into the first bank account. The purpose and effect of writing and depositing these worthless checks was to manipulate the numerical balances in the checking accounts, and thereby create the false and fraudulent appearance that the accounts had sufficient available funds in the accounts and to deceive and trick the banks into honoring the checks drawn against the checking accounts with insufficient funds.
In order to avoid detection, Doyle admitted to the Court, he did this daily throughout the life of the scheme, at times undertaking in excess of 50 transactions per day. At times, he also utilized ATM machines in order to lengthen the time it took for checks to be presented for clearing.
The investigation revealed that over the life of the scheme the defendant wrote tens of thousands of worthless checks between the banks at which he maintained accounts.
Doyle also admitted to the Court that for tax years 2013 thru 2016 he and his wife failed to report to the IRS more than $1 million dollars in income and failed to pay $305,426 in taxes due the IRS.
Doyle is scheduled to be sentenced on January 18, 2019.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.
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Former Honduran National Police Chief Sentenced to 14 Years in Prison for Conspiring to Import Cocaine into the United States and to Possess FirearmsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Raymond Donovan, Special Agent in Charge of the Drug Enforcement Administration’s Special Operations Division, announced today that Carlos ALBERTO VALLADARES GARCIA, a former high-ranking member of the Honduran National Police, was sentenced yesterday to 14 years in prison for conspiring to import cocaine into the United States and for conspiring to possess firearms in furtherance of his drug-trafficking activities. VALLADARES pled guilty April 24, 2018, and was sentenced by U.S. District Judge Lorna G. Schofield.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Carlos Alberto Valladares Garcia, a former Honduran National Police chief, worked from the inside to ensure a criminal enterprise operated with impunity. Not only did he provide clearance for a drug trafficking organization’s drugs to flow through his country and into the United States, but Valladares – a sworn law enforcement officer – participated directly in drug-related murders and cover ups. For his heinous acts, Valladares will serve 14 years in an American prison.”
Special Agent in Charge Raymond Donovan said: “The sentencing of Carlos Alberto Valladares Garcia sends a strong message to drug traffickers across the globe. As a member of the Honduran National Police, Valladares betrayed the trust of the people he served. This case confirms that anyone who associates and benefits from drug trafficking can and will be held accountable.”
According to the Indictment, other court filings, and statements made during court proceedings:
From approximately 1995 through 2013, VALLADARES served as a member of the Honduran National Police, holding positions including, among others, Chief of the Homicide Division in San Pedro Sula; Chief of Police for the city El Progreso, Yoro Department; and Chief of Police for the city of Quimistan, Santa Barbara Department. Between at least approximately 2005 and 2013, VALLADARES worked with members of a drug-trafficking organization known as the Cachiros, which was a prolific and violent criminal syndicate that relied on connections to politicians, military personnel, and law enforcement to transport cocaine to, within, and from Honduras. During that time, and while VALLADARES was purportedly enforcing the law as a police officer, VALLADARES participated in the Cachiros’ criminal enterprise by engaging in acts of violence, including several murders, and supporting their drug-trafficking activities.
For example, in approximately 2008, VALLADARES participated in a shootout in a nightclub that left several people dead. Prior to the shooting, the then-leaders of the Cachiros—Devis Leonel Rivera Maradiaga and Javier Eriberto Rivera Maradiaga—and a Honduran congressman also working with the Cachiros agreed to kill an individual in retaliation for drug-related violence. Leonel Rivera and Javier Rivera lured the intended victim to a nightclub in San Pedro Sula where a shootout occurred in which VALLADARES participated by firing his weapon. Several members of the intended victim’s security team were killed during this incident. VALLADARES also participated in additional acts of violence with the Cachiros. In October 2011, VALLADARES drove Leonel Rivera to an airport in San Pedro Sula to observe a shootout between members of the Cachiros and rival drug traffickers, which left six people dead. Prior to the shooting, Leonel Rivera told VALLADARES that he would be witnessing a “war.” And in approximately 2012, VALLADARES helped Leonel Rivera kill two individuals by identifying them as perpetrators of a murder and assisting in their kidnapping.
VALLADARES also was a significant part of the Cachiros’ drug-trafficking operations. On several occasions, VALLADARES accompanied Leonel Rivera during the transportation of drugs; was present at airstrips when substantial quantities of drugs were received by the Cachiros; and communicated with Leonel Rivera while the Cachiros transported drugs through Honduras. VALLADARES also carried a firearm during some of this conduct and was present with security teams that were armed with assault rifles.
To commit these crimes, VALLADARES took advantage of his position as a member of the Honduran National Police. The abuse of his position began in approximately 2004 when VALLADARES met Leonel Rivera and agreed to end an investigation that had identified Leonel Rivera as the perpetrator of a homicide. Over the next decade, and while VALLADARES rose through the ranks of the Honduran National Police and received awards for his purportedly honorable conduct, VALLADARES continued to use his position to assist the Cachiros. For example, Valladares (i) convinced a witness to not press charges against Leonel Rivera for a homicide; (ii) provided information to the Cachiros concerning police checkpoints; (iii) recruited other Honduran National Police officers to assist the Cachiros; (iv) worked with other corrupt cops to remove a seized truck from a secure premises to recover approximately 100 kilograms of cocaine in exchange for approximately $80,000 in U.S. currency; and (v) recovered $2 million in U.S. currency in drug-trafficking proceeds that was seized by law enforcement and returned it to the Cachiros.
* * *
In addition to the prison term, VALLADARES, 43, was sentenced to four years of supervised release.
Six other former members of the Honduran National Police, including, among others, Mario Guillermo Mejia Vargas, Victor Oswaldo Lopez Flores, Ludwig Criss Zelaya Romero, Juan Manuel Avila Meza, and Carlos Jose Zavala Velasquez, are also charged in this case with firearms and/or drug trafficking offenses relating to a separate conspiracy to import cocaine into the United States. Each of those individuals have pled guilty in federal court, along with co-conspirator Fabio Porfirio Lobo. On September 5, 2017, Lobo was sentenced to 24 years in prison; on February 6, 2018, Flores was sentenced to five years in prison; and on June 27, 2018, Velasquez was sentenced to 12 years in prison. The remaining defendants await sentencing by Judge Schofield.
Mr. Berman praised the outstanding efforts of the Special Operations Division of the DEA Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office. Mr. Berman also thanked the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III and Matthew Laroche are in charge of the prosecution.
Former Bassist for the Ataris Pleads Guilty to Defrauding Thousands in Nationwide Telemarketing Real Estate ScamRead the Press Release
The former bass player for the rock band, The Ataris –best known for their 2003 hit cover of Don Henley’s "The Boys of Summer" – pleaded guilty earlier today to a charge of conspiracy to commit mail and wire fraud. Michael S. Davenport, 50, of Santa Barbara, California, appeared at the federal district courthouse in East St. Louis, Illinois, and admitted to owning and operating a telemarketing business that defrauded thousands of would-be renters and home-buyers throughout the United States from 2009 to 2016. Davenport’s Santa Barbara-based business changed names several times but was known variously as MDSQ Productions LLC, Housing Standard LLC, Anchor House Financial, American Standard, American Standard Online, and Your American Standard. Court documents simply refer to the business as "American Standard."
As part of his guilty plea, Davenport admitted that American Standard posted ads on Craigslist listing certain houses for sale or rent at very favorable prices, when, in fact, the houses described in the ads didn’t exist. Consumers who responded to the ads were told they would have to purchase American Standard’s list of houses before they could see any additional information. Consumers were also told that the houses on American Standard’s list were in "pre-foreclosure," that they could purchase the properties by simply taking over the homeowners’ mortgage payments, and that the deeds to the homes would then be transferred into the customers’ names. The $199 fee that American Standard charged to access the list was purportedly to cover the cost of title searches and deed transfers. No matter what area of the country the consumer lived in, American Standard salespersons told them that the list contained numerous pre-foreclosure properties available in their area.
After consumers paid the $199 fee, they learned that the houses on American Standard’s list were not actually available for purchase. A substantial number of the addresses contained on the list were fictional, or there were simply no houses at those locations. In numerous other instances, the houses were not in pre-foreclosure or any financial distress and were not available to be purchased at below-market prices. If an American Standard customer asked for more
information about a specific house advertised on Craigslist, the company’s customer service department always told them that the house was no longer available.
Davenport acknowledged in court that his conspiracy and scheme to defraud operated from approximately January 2009 through at least October 5, 2016, over which time American Standard defrauded more than 100,000 people. The victims were located in all 50 states and the District of Columbia. Over 100 victims of the scam were located within the Southern District of Illinois, spread across 22 counties, with multiple victims in both St. Clair and Madison counties. American Standard’s list included 534 houses located in Southern Illinois. All told, the scheme took in more than $25 million.
Earlier this year, three of Davenport’s former employees also pleaded guilty in the Southern District of Illinois to participating in the American Standard fraud conspiracy. Mark A. Phillips (50) and Semjase E. Santana (37) were salespersons at American Standard’s headquarters in Santa Barbara, California. Carlynne L. Davis (33) was a salesperson in the company’s Lompoc, California branch office. All three are currently awaiting sentencing.
Criminal charges are also still pending against Cynthia L. Rawlinson, 51, of Santa Barbara, who is named as a co-defendant in Davenport’s indictment. Rawlinson allegedly started out as a salesperson but was later promoted to the sales manager position for American Standard’s Santa Barbara office. Rawlinson’s trial is set to begin on November 5, 2018, at the federal courthouse in East St. Louis, Illinois.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Davenport’s sentencing is set for December 28, 2018, at 10:00 a.m., in East St. Louis. Under the federal SCAMS Act, because the crimes involved telemarketing and victimized ten or more people over the age of 55, Davenport could receive as much as 30 years imprisonment and a fine of up to $250,000. He may also be ordered to pay restitution to his victims. Davenport’s plea agreement requires him to forfeit $853,210.11 taken from his merchant processing accounts, as well as $79,000 in cash that was seized from him last July as he was boarding a plane in Little Rock, Arkansas.
This case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The Office of the Honorable Joyce E. Dudley, District Attorney for Santa Barbara County, and the Santa Maria Office of the FBI have provided substantial assistance in the investigation. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Former Air Force Senior Airman Found Guilty of Making a Fraudulent Demand Against the United StatesRead the Press Release
SACRAMENTO, Calif. — After a two-day trial, a federal jury found Alyssa L. Gervais, 25, of Lincoln, guilty today of making a fraudulent demand against the United States, a misdemeanor, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, Gervais was a Senior Airman at Beale Air Force Base until her separation from the Air Force on January 10, 2019. During her three years in the Air Force, Gervais worked in the finance section at Beale Air Force Base. After her separation, in February 2018, Gervais filed a travel reimbursement request in the form of a “travel voucher” seeking reimbursement for post-separation travel from Beale Air Force Base to her home of record in Indiana. In the travel voucher, Gervais claimed that she, her husband, and their toddler son drove two vehicles over the course of eight days and over 2,000 miles. Gervais’s claimed expenses amounted to approximately $773. The finance section later discovered that Gervais and her family never took the trip and were in California the whole time. Gervais later confessed to investigators that she attempted to defraud the government by submitting a false travel voucher.
At trial, Gervais recanted her confession and instead testified that she lawfully submitted the travel voucher in an attempt to obtain a monetary advance for a trip to Indiana that the family planned to take in the future. Witnesses from the finance department contradicted this story by testifying that a request for an advance would have required a completely different form and procedure, and Gervais knew this because she had worked in the very department that processed travel vouchers and advances.
This case is the product of an investigation by Beale Air Force Base’s Security Forces Investigations Unit. Special Assistant U.S. Attorneys Eric Chang and Robert Artuz are prosecuting the case.
Gervais is scheduled to be sentenced by U.S. Magistrate Judge Kendall J. Newman on January 9, 2018. Gervais faces a maximum statutory penalty of one year in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Felon with 13 Prior Convictions Charged with Illegally Possessing HandgunRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of a firearm and ammunition by a convicted felon, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on September 27, named Darnell James Shipman, age 28, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, during April and May of 2018, Shipman, a convicted felon, unlawfully possessed a 9 millimeter semi-automatic Carik pistol and 17 rounds of 9 millimeter ammunition. The indictment also alleges that the defendant has been convicted of 13 offenses in seven different cases between 2010 and 2018. Federal law prohibits an individual with any felony convictions from possessing a firearm or ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney David Lew is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in a America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal, State, and Local Authorities Charge 28 Individuals on Federal Drug Charges as part of Operation California Dreamin’Read the Press Release
Abingdon, VIRGINIA – Twenty-eight individuals suspected of trafficking methamphetamine from Southern California into Southwest Virginia, Northeast Tennessee, and Georgia have been charged via a federal criminal complaint with conspiring to possess with the intent to distribute methamphetamine. United States Attorney Thomas T. Cullen was joined in announcing the arrests by officials from the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Washington County Sheriff’s Office, and the Sullivan County, Tennessee Second Judicial Drug Task Force.
“Although the opioid epidemic has gripped many communities in our district, methamphetamine is still the drug of choice in Southwest Virginia,” U.S. Attorney Cullen stated. “We are committed to working with the DEA, the ATF, the Virginia State Police, and our local partners to target the organizations and individuals responsible for trafficking this deadly drug and send them to federal prison.”
“ATF is committed to dismantling criminal organizations like this one and protecting the communities where they operate,” said Special Agent in Charge Thomas L. Chittum, Washington Field Division. “We are proud to work alongside our local, state and federal partners on operations like this, and will continue to do everything we can to take armed criminals off our streets and put them behind bars where they belong.”
In early 2017, an investigation was opened to examine the trafficking of methamphetamine between California and Southwest Virginia and Northeast Tennessee. According to the criminal complaint and supporting affidavit filed in court following today’s arrests, 28 individuals, located in California, Georgia, Virginia and Tennessee were identified as allegedly being involved in the trafficking and distribution of methamphetamine.
In addition, the investigation further revealed that some alleged sources of supply from California temporarily relocated to the Bristol, Virginia and Tennessee region in order to better facilitate their drug distribution operations.
Those charged today included:
- Shawn Wayne Farris
- Sean Phillip Maidlow
- Jair Medina Gutierrez
- Lacey Cheri Weir
- Andrea Nichole Stickel
- James Nicholas Howington
- James Robert Johnson
- Stephen A. Graham
- Christopher Lee Smiley
- Joshua Todd Chapman
- Saleemah Lashawn Roberson
- Donald Zachary Snyder
- James Skyler Sebastian
- Larry Levi Bennett
- Terry Melvin Dalton
- Heather Ashley Davis
- Brianna Nicole Woodby
- Donald Shane Hawthorne
- Gary Lee McFarlane
- Elizabeth Pauline Eaton
- Matthew Todd Mullins
- Anthony Chadwick Harless
- Kimberly Ann Drake
- Brandon Heath Whitt
- Melissa Darlene Barrett
- Susan Nicole Payne
- Bradley Scott Williams
- Devon Scott Coleman
The investigation of the case is being conducted by the Abingdon Police Department, Virginia State Police, Washington County Sheriff’s Office, Bristol, Tennessee Police Department, Bristol, Virginia Police Department, the Sullivan County, Tennessee Second Judicial Drug Task Force, Sullivan County Sheriff’s Department, Commerce, Georgia Police Department, New Jersey State Police, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the United States Postal Inspection Service. The Washington County Commonwealth’s Attorney’s Office, Bristol, Virginia Commonwealth’s Attorney’s Office, and the Sullivan County, District Attorney’s Office have assisted in the investigation. Western District of Virginia Criminal Chief Zachary T. Lee will prosecute the case for the United States.
A criminal complaint 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.
Federal Inmate Pleads Guilty and Receives Life Sentence for 2000 Carjacking, Kidnapping and Murder in VermontRead the Press Release
A federal inmate formerly residing in Pennsylvania pleaded guilty today to murder, carjacking and kidnapping, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Christina Nolan for the District of Vermont.
Donald Fell, 38, formerly of Wilkes-Barre, Pennsylvania, pleaded guilty to a federal indictment arising from the Nov. 27, 2000 kidnapping, carjacking and murder of 53-year old Teresca King.
Fell pleaded guilty to all four charges pending against him, including carjacking with death resulting, kidnapping with death resulting, brandishing a firearm in furtherance of a crime of violence and transportation of a firearm by a fugitive from justice. Chief U.S. District Court Judge Geoffrey W. Crawford accepted Fell’s guilty plea in U.S. District Court in Rutland, Vermont. Immediately after the guilty plea, Judge Crawford sentenced Fell to serve life in prison without the possibility of release. Fell also agreed to waive direct appeal.
During the plea, Fell admitted to murdering Rutland man Charles Conway while Fell’s friend and now deceased co-defendant Robert Lee murdered Fell’s mother Debra Fell, 46, in an apartment on Robbins Street in Rutland. The two men then carjacked and kidnapped Teresca King in Rutland and drove into New York State, where they killed Mrs. King. Lee and Fell were natives of Wilkes-Barre, Pennsylvania, who came to Vermont in late 2000.
According to the plea agreement, on the evening of Nov. 26, 2000, defendant Donald R. Fell, Robert Lee, Debra Fell, and Charles Conway were socializing in the apartment of Debra Fell on Robbins Street in Rutland. In the early morning hours of Nov. 27, 2000, Fell attacked Charles Conway with a knife and killed him. Robert Lee attacked Debra Fell with another knife, killing her.
After killing Conway and Debra Fell, Fell and Lee walked together to the Price Chopper grocery store in Rutland, carrying an unloaded Mossberg 12-gauge shotgun, looking for a car in which to leave Vermont. At approximately 3:30 a.m., Fell and Robert Lee confronted Teresca King when she arrived in her Vermont plated Plymouth Neon automobile at the Price Chopper to work her early morning shift. At shotgun point, Fell and Lee stole King’s car keys and forced her into the backseat of her car. The two men then took turns driving the car west out of Vermont into New York State, and then south for several hours. Shortly after dawn on Nov. 27, 2000, the men parked King’s car at the side of the road in rural Dover Plains, New York, and took King into the woods. In a spot not visible from the road, Fell and Lee battered King to death, kicking her in the head and striking her face with a rock as she lay on her back. Leaving King’s body in the woods, Fell and Lee continued driving south in her car.
The two men stopped in their hometown of Wilkes-Barre for a night. In Wilkes-Barre, they stole a pair of Pennsylvania license plates from another Plymouth Neon and put them on King’s car, and discarded King’s Vermont plates. Continuing southwest, the two men paused to refuel in Clarksville, Arkansas, where a local law enforcement officer stopped the Plymouth Neon due to the stolen plates. Fell and Lee were arrested, and the Mossberg 12-gauge shotgun was seized.
The United States extends its sympathy and gratitude to Mrs. King’s family, who closely followed the case since 2000, attending all court hearings and displaying remarkable patience with the extraordinary delays. The United States also extends its sympathy to the family members of Charles Conway. In his plea today, Fell acknowledged that he murdered Mr. Conway while Fell’s deceased co-defendant, Robert Lee, was murdering Fell’s mother, Debra Fell. By encompassing Fell’s role in these murders in the plea, the loss of the lives of Mr. Conway and Mrs. Fell are recognized.
The investigation was conducted by the FBI, the Rutland Police Department, the Vermont State Police, the New York State Police and the Clarksville, Arkansas Police Department. The U.S. Marshal’s Service also worked hard on the case over the years.
The case was prosecuted by Assistant U.S. Attorneys Bill Darrow and Jon Ophardt, along with Trial Attorney Sonia Jimenez of the Criminal Division’s Capital Case Section of the Department of Justice.
U.S. Attorney Christina Nolan commended U.S. Attorney’s Office prosecutors and staff for their commitment and tremendous work on this case for more than 17 years. She noted that Assistant U.S. Attorney Darrow has prosecuted this case with distinction and remarkable dedication over its entire lifespan, and she thanked the Department’s Capital Case Section and its prosecutors for their support and partnership. She acknowledged the tremendous toll that nearly 18 years of litigation has taken on the victims’ families and stated that, in supporting the plea agreement, the United States hoped to bring that protracted ligation to resolution and secure finality for the victims, the public, law enforcement, and all other parties involved.
Federal Inmate Pleads Guilty and Receives Life Sentence for 2000 Carjacking, Kidnapping and Murder in VermontRead the Press Release
WASHINGTON – A federal inmate formerly residing in Pennsylvania pleaded guilty today to murder, carjacking and kidnapping, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Christina Nolan for the District of Vermont.
Donald Fell, 38, formerly of Wilkes-Barre, Pennsylvania, pleaded guilty to a federal indictment arising from the Nov. 27, 2000 kidnapping, carjacking and murder of 53-year old Teresca King.
Fell pleaded guilty to all four charges pending against him, including carjacking with death resulting, kidnapping with death resulting, brandishing a firearm in furtherance of a crime of violence and transportation of a firearm by a fugitive from justice. Chief U.S. District Court Judge Geoffrey W. Crawford accepted Fell’s guilty plea in U.S. District Court in Rutland, Vermont. Immediately after the guilty plea, Judge Crawford sentenced Fell to serve life in prison without the possibility of release. Fell also agreed to waive direct appeal.
During the plea, Fell admitted to murdering Rutland man Charles Conway while Fell’s friend and now deceased co-defendant Robert Lee murdered Fell’s mother Debra Fell, 46, in an apartment on Robbins Street in Rutland. The two men then carjacked and kidnapped Teresca King in Rutland and drove into New York State, where they killed Mrs. King. Lee and Fell were natives of Wilkes-Barre, Pennsylvania, who came to Vermont in late 2000.
According to the plea agreement, on the evening of Nov. 26, 2000, defendant Donald R. Fell, Robert Lee, Debra Fell, and Charles Conway were socializing in the apartment of Debra Fell on Robbins Street in Rutland. In the early morning hours of Nov. 27, 2000, Fell attacked Charles Conway with a knife and killed him. Robert Lee attacked Debra Fell with another knife, killing her.
After killing Conway and Debra Fell, Fell and Lee walked together to the Price Chopper grocery store in Rutland, carrying an unloaded Mossberg 12-gauge shotgun, looking for a car in which to leave Vermont. At approximately 3:30 a.m., Fell and Robert Lee confronted Teresca King when she arrived in her Vermont plated Plymouth Neon automobile at the Price Chopper to work her early morning shift. At shotgun point, Fell and Lee stole King’s car keys and forced her into the backseat of her car. The two men then took turns driving the car west out of Vermont into New York State, and then south for several hours. Shortly after dawn on Nov. 27, 2000, the men parked King’s car at the side of the road in rural Dover Plains, New York, and took King into the woods. In a spot not visible from the road, Fell and Lee battered King to death, kicking her in the head and striking her face with a rock as she lay on her back. Leaving King’s body in the woods, Fell and Lee continued driving south in her car.
The two men stopped in their hometown of Wilkes-Barre for a night. In Wilkes-Barre, they stole a pair of Pennsylvania license plates from another Plymouth Neon and put them on King’s car, and discarded King’s Vermont plates. Continuing southwest, the two men paused to refuel in Clarksville, Arkansas, where a local law enforcement officer stopped the Plymouth Neon due to the stolen plates. Fell and Lee were arrested, and the Mossberg 12-gauge shotgun was seized.
The United States extends its sympathy and gratitude to Mrs. King’s family, who closely followed the case since 2000, attending all court hearings and displaying remarkable patience with the extraordinary delays. The United States also extends its sympathy to the family members of Charles Conway. In his plea today, Fell acknowledged that he murdered Mr. Conway while Fell’s deceased co-defendant, Robert Lee, was murdering Fell’s mother, Debra Fell. By encompassing Fell’s role in these murders in the plea, the loss of the lives of Mr. Conway and Mrs. Fell are recognized.
The investigation was conducted by the FBI, the Rutland Police Department, the Vermont State Police, the New York State Police and the Clarksville, Arkansas Police Department. The U.S. Marshal’s Service also worked hard on the case over the years.
The case was prosecuted by Assistant U.S. Attorneys Bill Darrow and Jon Ophardt, along with Trial Attorney Sonia Jimenez of the Criminal Division’s Capital Case Section of the Department of Justice.
U.S. Attorney Christina Nolan commended U.S. Attorney’s Office prosecutors and staff for their commitment and tremendous work on this case for more than 17 years. She noted that Assistant U.S. Attorney Darrow has prosecuted this case with distinction and remarkable dedication over its entire lifespan, and she thanked the Department’s Capital Case Section and its prosecutors for their support and partnership. She acknowledged the tremendous toll that nearly 18 years of litigation has taken on the victims’ families and stated that, in supporting the plea agreement, the United States hoped to bring that protracted ligation to resolution and secure finality for the victims, the public, law enforcement, and all other parties involved.