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7 November 2018
Scranton Man Sentenced to Five Years’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dickson Gutierrez, age 43, of Scranton, Pennsylvania, was sentenced on November 6, 2018, by Senior U.S. District Court Judge James M. Munley to serve 50 months’ imprisonment and three years’ supervised release for cocaine trafficking. Gutierrez was also sentenced to serve an additional 10 months in prison for violating the terms of his supervised release by committing the offense.
According to United States Attorney David J. Freed, Gutierrez previously admitted to possessing between 300 and 400 grams of cocaine for further distribution. The charge stems from an investigation, conducted in August 2017, in which police made two purchases of cocaine from Gutierrez and then obtained a search warrant for Gutierrez’s residence and vehicle, both located on Hampton Street in Scranton, and seized additional amounts of cocaine as well as $10,275 in cash. Gutierrez was on court-ordered supervised release at the time of these incidents.
The investigation was conducted by the Drug Enforcement Administration, the Pennsylvania State Police and the Scranton Police Department. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
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Repeat Offender Sentenced for Controlled Substance OffenseRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Andrew Daniel Hill (29, Jacksonville) to four years and eight months in federal prison for possessing with the intent to distribute MDMA and for violating the terms of his supervised release, which he was serving after a 2013 federal conviction for possessing with the intent to distribute methylone. Hill was previously sentenced to 42 months’ imprisonment in connection with the 2013 conviction.
Hill had pleaded guilty on July 31, 2018.
According to court documents, in April 2018, agents from U.S. Customs and Border Protection intercepted an international mail parcel destined for a mailbox rented in Hill’s name at a shipping center and mailbox rental location in Jacksonville. Law enforcement discovered the parcel contained 112 grams of a white powder and rocky crystalline substance, which was later tested and confirmed to be MDMA. When Hill arrived to pick up the package, he was arrested. A search of Hill’s text messages revealed that he had bragged about his new source of supply in Canada and that he intended to sell the substance.
“This repeat offender continued to import dangerous drugs into our country and our communities,” said HSI Tampa Special Agent in Charge James C. Spero. “Partnering with the Jacksonville Sheriff’s Office, the U.S. Postal Inspection Service and the U.S. Attorney’s Office, allows us to ensure that sentencings like this continue to keep our neighborhoods safe.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service, U.S. Customs and Border Protection, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
Providence Man Indicted on Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE - A federal grand jury on Tuesday returned an eight-count indictment charging a Providence man with trafficking fentanyl, heroin, cocaine, and crack cocaine, and for being a felon in possession of a firearm.
According to court documents, in August 2018, Newport Police detectives launched an investigation into the alleged drug trafficking activities in Newport of Franklin Valenzuela, 23. The investigation included purchases of fentanyl by a Newport detective allegedly from Valenzuela. During the course of the investigation it was learned that Cranston Police detectives were also investigating Valenzuela’s alleged drug trafficking activities.
On August 31, 2018, an undercover Newport Police detective ordered a quantity of heroin from Valenzuela, who allegedly agreed to deliver the heroin to an apartment complex in Newport. On that date, Newport and Cranston Police and members of the Rhode Island DEA Drug Task Force established surveillance in the area of the apartment complex in Newport and of Valenzuela’s Providence residence. Valenzuela was surveilled as he left his residence in Providence and drove to Newport. Officers moved in and took Valenzuela into custody as he entered the apartment complex parking lot.
As Valenzuela exited the vehicle, several small bags of heroin allegedly fell from Valenzuela’s lap. He was also found to be in possession of $1,393 in cash. According to court documents, Valenzuela consented to a search of his Providence residence, where law enforcement allegedly seized 75 grams of cocaine and 18 grams of crack cocaine in small plastic bags, 423 grams of marijuana, a disassembled firearm and $7, 807 in cash. Also seized was a bag containing an unknown quantity of fentanyl. Due to the dangerousness of fentanyl, per DEA policy, the narcotics were immediately placed in sealed evidence bags and sent to the Northeastern Regional Laboratory to be tested.
On Tuesday, a federal grand jury returned an indictment charging Franklin Valenzuela with possession with intent to distribute 28 grams or more of cocaine base; possession with intent to distribute heroin; possession with intent to distribute cocaine; possession with intent to distribute fentanyl; distribution of cocaine; distribution of fentanyl; and being a felon in possession of a firearm.
The indictment of Valenzuela is announced by United States Attorney Stephen G. Dambruch, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle, Newport Police Chief Gary T. Silva, and Cranston Police Chief Colonel Michael J. Winquist.
An arraignment date has not yet been scheduled for Franklin Valenzuela who is presently detained at the ACI as a probation violator on a previous Rhode Island state court conviction.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
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Press Release by United States Attorney Relating to November 2018 ElectionsRead the Press Release
United States Attorney SHAWN N. ANDERSON announced today that Assistant United States Attorney (AUSA) Eric O’Malley will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 13, 2018, general election in the Northern Mariana Islands (NMI) which was delayed due to Typhoon Yutu. AUSA O’Malley has been appointed to serve as the District Election Officer (DEO) for the District of the NMI and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Anderson said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 13, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Anderson stated that AUSA/DEO O’Malley will be on duty in this District while the polls are open. Mr. O’Malley can be reached by the public by calling (670) 236-2980.
In addition, the local FBI office will be available to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public by calling Special Agent Brandon Ridenhour at (670) 237-0205.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Anderson said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Plattsburgh Contractor Pays $350,000 to Resolve Claims Related to Bridge-Sealing ProjectsRead the Press Release
ALBANY, NEW YORK – Dandrow’s Painting, Inc. (Dandrow’s) has agreed to pay $350,000 to resolve allegations that it failed to purchase and apply sufficient quantities of a penetrating sealing agent to meet its obligations under federally funded contracts. The announcement was made by United States Attorney Grant C. Jaquith; Douglas Shoemaker, Special Agent in Charge of the Northeast Regional Office of the United States Department of Transportation, Office of Inspector General (USDOT-OIG); New York State Inspector General (NYS-IG) Catherine Leahy Scott; and Robert L. Keihm, Chief Investigator for the New York State Department of Transportation (NYSDOT) Investigations Bureau.
NYSDOT has contracts for the washing and sealing of concrete bridge decks that are funded, in part, with federal funds. These contracts require the application of a penetrating sealing agent at specified rates to ensure the protection and integrity of the bridge decks over their useful lives. If a sufficient quantity of the sealant is not applied, the bridge deck may not be protected against weather-related deterioration. During the course of its investigation, USDOT-OIG and NYS-IG discovered that Dandrow’s had not purchased sufficient quantities of the sealing agent to satisfy its contractual obligations under its contracts with NYSDOT.
United States Attorney Jaquith said: “Safeguarding public dollars is one of this office’s top priorities. When companies enter into federally funded contracts, they must ensure that they are complying with their contractual obligations. Today’s settlement reaffirms our commitment to ensuring that taxpayers are receiving the benefit of their bargain. I would like to thank the agents from USDOT-OIG, NYS-IG and NYSDOT for their diligent efforts to bring this matter to a successful conclusion.”
The investigation and settlement were the result of a coordinated effort among the U.S Attorney’s Office for the Northern District of New York, USDOT-OIG, NYS-IG and NYSDOT. The United States was represented by Assistant United States Attorney John Hoggan.
Pinon Man Sentenced to Prison for Aggravated AssaultRead the Press Release
PHOENIX – Yesterday, Paitric Small, 30, was sentenced by U.S. District Judge G. Murray Snow to 32 months’ imprisonment, followed by three years of supervised release, for aggravated assault on the Navajo Nation Indian Reservation. On March 19, 2018, Small assaulted the victim with a machete; they are both members of the Navajo Nation. Small had previously pleaded guilty to assault with a dangerous weapon.
The investigation in this case was conducted by the Federal Bureau of Investigation with assistance from the Navajo Nation Department of Public Safety. The prosecution was handled by Dimitra Sampson, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-8102-PCT-GMS
RELEASE NUMBER: 2018-149_Small
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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.
Philadelphia Felon Charged with Illegally Possessing Crack Cocaine, Fentanyl and GunsRead the Press Release
JOHNSTOWN, Pa. – A resident of Philadelphia, Pa., was indicted by a federal grand jury in Johnstown on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The indictment named Robert L. Green, 40.
According to the indictment presented to the court, on July 27, 2018, Green possessed with intent to distribute more than 28 grams of cocaine base, commonly known as "crack," and a quantity of fentanyl. Also, on July 27, 2018, he was found in possession of a Harrington & Richardson .32 caliber revolver and a Smith & Wesson .380 caliber handgun. On April 12, 2004, Green was convicted in the Court of Common Pleas of Philadelphia County, of robbery, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
The law provides for a maximum sentence of 70 years in prison and a fine of $6,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Special Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Johnstown Police Department conducted the investigation that led to the prosecution of Green.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Palm Coast Man Indicted for Federal Firearm and Drug ViolationsRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Jerard Keaton Davis (33, Palm Coast) with possessing a firearm as a convicted felon and possessing crack cocaine with the intent to distribute it. If convicted, he faces a mandatory minimum sentence of 15 years, and up life, in federal prison. Davis was arrested and ordered detained pending trial.
According to court documents, while executing a search warrant, law enforcement officers found Davis in possession of a .380 caliber pistol and crack cocaine. At the time, Davis had multiple prior felony drug convictions and, therefore, was prohibited from possessing a firearm or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Flagler County Sheriff’s Office. The case will be prosecuted by Assistant United States Attorney David Mesrobian.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Ohio Man Sentenced to Prison for Gun and Drug ChargesRead the Press Release
HUNTINGTON, W.Va. – A Zanesville, Ohio man who possessed methamphetamine and a firearm in Huntington in 2017 was sentenced today to 137 months in prison, announced United States Attorney Mike Stuart. Rico Rodriquez Allen, 43, previously pled guilty to possessing with the intent to distribute methamphetamine and possessing a firearm during and in relation to a drug trafficking crime. Stuart credited the work of the Bureau of Alcohol, Tobacco, Firearms and the Huntington Police Department.
“As I’ve said before, when we identify violent Ohio drug dealers in our cities, we will prosecute them and, if convicted, seek to lock them up for as long as possible,” said United States Attorney Mike Stuart. “Allen will now be spending over 11 years in federal prison.”
On September 16, 2017, HPD officers were dispatched to a man slumped over his steering wheel in a private driveway in Huntington. When officers arrived, Allen refused to exit the vehicle. As Allen was being removed from the vehicle, a Glock 22 pistol fell from underneath Allen. Officers then obtained a search warrant for the vehicle. Officers recovered approximately 162 grams of methamphetamine from a void in the center console. Officers also recovered approximately 100 baggies, four telephones, and a bullet proof vest.
Assistant United States Attorney Stephanie S. Taylor prosecuted the case. United States District Judge Robert C. Chambers imposed the sentence.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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New York Man Sentenced to Prison for Obstructing Federal CaseRead the Press Release
HUNTINGTON, W.Va. – A New York man who helped obstruct a federal drug conspiracy case in 2017 was sentenced today in Huntington to 12 months and 1 day in prison, announced United States Attorney Mike Stuart. Kevin Fritz Lamerique, 34, previously pled guilty to aiding and abetting an attempt to obstruct and impede an official proceeding. United States Attorney Stuart commended the work of the Huntington FBI Drug Task Force and the United States Postal Inspection Service.
“Attempting to obstruct or impede a federal investigation is a serious crime,” said United States Attorney Mike Stuart. “I have made this abundantly clear in previous actions. Those who obstruct or impede federal agents will be held accountable.”
From at least February of 2016 to June of 2017, members of the conspiracy obtained quantities of methamphetamine and heroin from California which were mailed to the Huntington and Cross Lanes areas. The drugs would then be distributed to customers in Cabell, Putnam, and Kanawha counties. During the investigation, agents executed multiple search warrants in Cabell and Kanawha counties and seized almost 10 pounds of crystal methamphetamine along with multiple firearms and ammunition.
Lamerique admitted that after an indictment was returned in Huntington charging various members of the conspiracy, he initiated contact with a charged defendant at the direction of another person. During various contacts, Lamerique delivered messages and instructions to the charged defendant. Lamerique also arranged and participated in contacts between the charged defendant and the other person to aid the charged defendant’s evasion of arrest.
Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
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New York Man Pleads Guilty to Failure to Register as a Sex OffenderRead the Press Release
BOSTON - A New York man, formerly residing in Massachusetts, pleaded guilty yesterday in federal court in Boston to failing to register as a sex offender.
Angel Luis Morales, 30, pleaded guilty to one count of failing to register as a sex offender before U.S. District Court Judge Indira Talwani, who scheduled sentencing for Feb. 7, 2019.
Between 2013 and 2014, Morales was convicted in Massachusetts of multiple sex offenses including open and gross lewdness and indecent assault and battery. These offenses involved multiple victims, and as a result, Morales was designated a Level III sex offender and required, among other things, to register for life with the Sex Offender Registry Board in any state in which he resided, worked, or attended school.
In 2017, Morales registered with the Sex Offender Registry Board in Massachusetts listing a Roxbury address. In March 2018, law enforcement in New York discovered that Morales had relocated to Rochester and had not updated his registration in New York or notified officials in Massachusetts of his relocation.
On May 18, 2018, Morales was arrested in Rochester and charged in the Western District of New York with failing to register as a sex offender. Morales was ordered detained without bail. He then requested that his case be transferred back to Massachusetts.
Morales faces a sentence of no greater than 10 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. 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; United States Attorney for the Western District of New York James P. Kennedy Jr.; John Gibbons, U.S. Marshal for the District of Massachusetts; and Rochester (N.Y.) Police Chief Mark Simmons made the announcement. Assistant U.S. Attorney Kenneth G. Shine is prosecuting the case.
More Than Four Pounds of Fentanyl Lead to Prison for Two MenRead the Press Release
OKLAHOMA CITY – JOSE AVIGAIL GRIJALVA, 26, of Tucson, Arizona, and RAYMEND LEE SCOTT, JR., 39, of Roswell, Georgia, have been sentenced to ten and seven years respectively for trafficking in fentanyl and cocaine, announced Robert J. Troester of the U.S. Attorney’s Office.
According to court documents, the Oklahoma Highway Patrol stopped Grijalva and Scott for a traffic violation on Interstate 40 in western Oklahoma on April 10, 2017. A drug dog alerted to the back bumper. Troopers found 4.5 pounds of fentanyl and more than seven pounds of cocaine in the spare tire.
The next day, the District Attorney for Caddo County charged Grijalva and Scott with aggravated drug trafficking. A federal grand jury indicted the pair on May 18, 2017, on one count of conspiracy and one count of possessing cocaine with intent to distribute. After testing revealed the presence of fentanyl, the grand jury returned a two-count superseding indictment on June 20, 2017.
Fentanyl is a powerful synthetic opioid typically prescribed in amounts less than a milligram. The National Institute on Drug Abuse reported in August 2018 that synthetic opioids other than methadone—a category dominated by fentanyl—were responsible for more than 29,000 of approximately 72,000 overdose deaths in the United States in 2017. According to the Drug Enforcement Administration, 4.5 pounds of fentanyl, if pure, could kill as many as one million people.
Grijalva pleaded guilty to possession of controlled substances with intent to distribute on November 21, 2017. On February 27, 2018, Scott pleaded guilty to a superseding information that charged him with conspiring to traffic fentanyl and cocaine.
On September 6, 2018, Chief U.S. District Judge Joe Heaton sentenced Grijalva to 120 months in prison, to be followed by five years of supervised release. Today Judge Heaton sentenced Scott to seven years in prison and three years of supervised release. Both have been in state or federal custody since their arrest in April 2017.
This case is the result of an investigation by the Drug Enforcement Administration and the Oklahoma Highway Patrol, with assistance from the District Attorney for Caddo, Grady, Jefferson, and Stephens Counties. It was prosecuted by Assistant U.S. Attorneys David McCrary and Jacquelyn M. Hutzell.
Reference is made to court filings for further information.
Members of Fraudulent Jamaican Sweepstakes Ring Convicted of Conspiracy, Money Laundering, and Aggravated Identity TheftRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury has found Nadine Bromfield Alexander (39, Orlando) and Shameer Hassan (45, Kissimmee) guilty of conspiracy to commit wire fraud, conspiracy to commit money laundering, and three counts of aggravated identity theft. The jury also found Hassan guilty of eight counts of money laundering. They each face a maximum penalty of 20 years in prison on each of the conspiracy charges, and a mandatory minimum of two years for the aggravated identity theft charges. Hassan also faces up to 20 years’ imprisonment on each of the money laundering charges. The sentencing hearings are scheduled for January 21, 2019.
Alexander and Hassan were indicted on May 31, 2018.
According to testimony and evidence presented at trial, Alexander and Hassan participated in a fraudulent sweepstakes scheme that operated in the Middle District of Florida and Jamaica. Members of the conspiracy targeted victims throughout the United States, many whom were elderly, and falsely informed them that they had won a multi-million dollar prize in a sweepstakes contest. The conspirators told the victims to wire funds to “representatives” in Orlando to prepay fees and taxes on the prize money. Upon receipt of the funds, other members of the conspiracy converted the funds to money orders and cash. They then paid Hassan, who operated several money transfer businesses, to wire the fraud proceeds to Jamaica.
Alexander stole the personal identity information belonging to more than 35 individuals from her workplace and gave it to her co-conspirators. Hassan used the stolen information to launder the funds. In less than two years, Hassan and his co-conspirators transferred more than $3 million in funds obtained from victims to conspirators in Jamaica.
This case was investigated by the SCIRS Federal Financial Crimes Task Force, whose members include the IRS-Criminal Investigation, the Brevard County Sheriff’s Office, the St. Cloud Police Department, the Osceola County Sheriff’s Office, the Winter Park Police Department, the Casselberry Police Department, the Kissimmee Police Department, the Maitland Police Department, the Palm Bay Police Department, and the U.S. Secret Service. It is being prosecuted by Assistant United States Attorneys Karen L. Gable and Roger B. Handberg.
Maryland Treatment Centers Agrees to Pay $500,000 to Resolve Allegations That It Submitted Claims for Services That Were Undocumented or Not ProvidedRead the Press Release
Baltimore, Maryland – Maryland Treatment Centers has agreed to pay the United States $500,000 to settle allegations under the False Claims Act that it submitted false claims to the United States for mental health and substance abuse services that were undocumented or not provided. Maryland Treatment Centers, including its affiliate Mountain Manor Treatment Centers, offers mental health and substance abuse services to children and adults in outpatient and inpatient locations in Maryland, including Baltimore and Rockville.
The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services, Maureen Dixon; and Maryland Attorney General Brian Frosh.
Maryland Treatment Centers presents claims to and is paid by health insurance plans, including Medicaid. According to the settlement agreement, from January 1, 2009 through October 31, 2013, Maryland Treatment Centers knowingly failed to comply with the Code of Maryland Regulations (“COMAR”). Specifically, Maryland Treatment Centers submitted claims for substance abuse and/or mental health services for which Maryland Treatment Centers failed to document in any way the services allegedly provided; failed to document properly the services allegedly provided to recipients by writing daily progress notes and placing them in the recipients’ charts; failed to document that recipients attended, participated and/or received the services allegedly rendered; and documented procedures on patient progress notes that were inconsistent with procedures for which Maryland Treatment Centers claimed Medicaid reimbursement, and which Medicaid paid.
The claim resolved by this settlement is an allegation. The settlement is not an admission of liability by Maryland Treatment Centers, nor a concession by the United States that its claims are not well founded.
Also as part of the settlement, Maryland Treatment Centers has agreed to enter into an expansive, three-year Integrity Agreement with the HHS Office of Inspector General that provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to the settlement.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government's recovery. The civil lawsuit was filed in the District of Maryland and is captioned United States ex rel. Blackwell v. Maryland Treatment Centers, et al., ELH-13-3550. As part of today’s resolution, Ms. Blackwell will receive $75,000 from the settlement.
The civil settlement was reached by the United States Attorney’s Office for the District of Maryland and the Office of the Attorney General Medicaid Fraud Control Unit for the State of Maryland. The Integrity Agreement was negotiated by the Office of the Counsel to the Inspector General of the Department of Health and Human Services.
United States Attorney Robert K. Hur commended the HHS Office of Inspector General and the Maryland Attorney General’s Office for their work in the investigation. Mr. Hur also thanked Assistant United States Attorney Roann Nichols, who handled this case.
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Manhattan U.S. Attorney Announces Conviction of Radio Talk Show Host Craig Carton for Securities and Wire FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the conviction of CRAIG CARTON for securities fraud, wire fraud, and conspiracy to commit those offenses. CARTON’s co-defendant, Michael Wright, pled guilty before U.S. Magistrate Judge Stewart D. Aaron in September 2018 for his participation in the scheme. CARTON is scheduled to be sentenced on February 27, 2018, at 4 p.m. by Chief U.S. District Judge Colleen McMahon, who presided over the one-week trial.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Radio personality Craig Carton solicited investments for his ticket buying scheme by touting his show business contacts and ability to buy blocks of tickets to live events such as Metallica, Barbra Streisand, and others, and sell them for a profit on the secondary ticket market. As a unanimous Manhattan jury has found, Carton was all talk. Carton fabricated contracts for blocks of tickets and spent the almost $7 million he collected from investors on gambling and personal expenses. We commend the jury for seeing through Carton’s blatant lies, and holding him responsible for his Ponzi-like scheme. Today’s verdict is a win for investors; lying to them is a federal crime.”
As set forth in the Complaint, Indictment, and the evidence presented at trial:
CARTON and another individual (“CC-1”) worked together to induce investors to provide them with millions of dollars, based on representations that the investor funds would be used to purchase blocks of tickets to concerts, which would then be re-sold on the secondary market. CARTON and CC-1 purportedly had access to those blocks of tickets based on agreements that CC-1 had with a company that promotes live music and entertainment events (the “Concert Promotion Company”) and that CARTON had with a company that operates two arenas in the New York metropolitan area (the “Sports and Entertainment Company”). In fact, neither the Concert Promotion Company nor the Sports and Entertainment Company had any such agreement with CARTON, Wright, CC-1, or any entity associated with them. After receiving the investor funds, CARTON, Wright, and CC-1 misappropriated those funds, using them to, among other things, pay personal debts and repay prior investors as part of a Ponzi-like scheme.
In the fall of 2016, CARTON, Wright, and CC-1 exchanged emails and text messages regarding their existing debts. On September 5, 2016, for example, Wright emailed CARTON and CC-1, “for the sake of our conversation tomorrow,” and outlined “the debt past due and due next week.” Wright listed several apparent creditors, to whom he, CC-1, and/or CARTON were personally indebted for over a million dollars. Wright listed eight possible options for repaying the debt, including “Run to Costa Rica, change name, and start life all over again – may not be an option.” CARTON responded to Wright and CC-1, stating “don’t forget I have $1m coming tomorrow from ticket investor[.] will need to be discussed how to handle.” On September 7, 2016, CARTON emailed Wright and CC-1, referenced a potential investor (“Investor-1”) in an upcoming holiday concert tour, and suggested “borrow[ing] against projected profits” on that investment.
Later in the fall of 2016, CARTON began negotiating with a hedge fund (the “Hedge Fund”) regarding a transaction in which the Hedge Fund would extend CARTON capital to finance CARTON’s purchase of event tickets, which CARTON would then re-sell at a profit. In early December 2016, CC-1 texted CARTON and Wright and discussed using the Hedge Fund’s capital “to repay debts,” and not for the purchase of tickets.
The next day, December 7, 2016, CARTON emailed the Hedge Fund five agreements between (i) CC-1 and a company controlled by CC-1 (the “CC-1 Entity”) and (ii) the Concert Promotion Company. In each of the purported agreements, the Concert Promotion Company agreed to sell the CC-1 Entity up $10 million worth of tickets to different concert tours. However, as alleged, these agreements were fraudulent and had not, in fact, been entered into by the Concert Promotion Company.
The following day, the Hedge Fund and CARTON executed the revolving loan agreement (the “Revolving Loan Agreement”), under which the Hedge Fund agreed to provide CARTON with up to $10 million, for the purpose of funding investments in the purchase of tickets for events. The Revolving Loan Agreement provided, in sum and substance, that the proceeds of the loan would be used only to purchase tickets pursuant to agreements for the acquisition of tickets, including the agreements with the Concert Promotion Company and for limited business expenses. The Hedge Fund would receive a share of the profits from the resale of the tickets.
The Hedge Fund then sent $700,000 to the CC-1 Entity to finance the purchase of tickets pursuant to the agreements between the CC-1 Entity and the Concert Promotion Company. CC-1, however, then sent this money to a bank account controlled by Wright, who then, on December 12, sent $200,000 to CARTON’s personal bank account (the “CARTON Bank Account”), which CARTON then wired to a casino. Also on December 12, Wright sent another $500,000 to an individual who had previously lent CARTON $500,000, which was due to be repaid that day.
Later in December 2016, the Hedge Fund sent an additional $1.9 million to the CC-1 Entity, to finance the purchase of tickets pursuant to agreements between the CC-1 Entity and the Concert Promotion Company. Once again, the Concert Promotion Company had not entered into any such agreements. CC-1, Wright, and CARTON engaged in text messages regarding the disposition of these funds. Some of the money was used by CC-1 to repay two individuals who had previously invested with CC-1 in a related scheme involving the purported investment in the resale of tickets, and by CARTON to pay casinos and to pay Investor-1 a purported return on an earlier investment in a ticket-related venture.
CARTON also induced the Hedge Fund to wire $2 million to the Sports and Entertainment Company, based purportedly on an agreement he had with the Sports and Entertainment Company (the “Sports and Entertainment Company Agreement”). The Sports and Entertainment Company Agreement purportedly gave an entity controlled by CARTON (the “CARTON Entity”) the right to purchase $2 million of tickets to concerts at one of the venues operated by the Sports and Entertainment Company. CARTON, among other things, sent the Hedge Fund a copy of the Sports and Entertainment Company Agreement that purportedly had been signed by the chief executive officer of the Sports and Entertainment Company. However, this agreement was fraudulent and had never been entered into by the Sports and Entertainment Company or signed by the chief executive officer.
On December 20, 2016, when the Hedge Fund wired the $2 million to the Sports and Entertainment Company, CARTON contacted the Sports and Entertainment Company and told them, in sum and substance, that the wire had been sent in error and should be sent to the bank account for an entity operated by CARTON and Wright, for which Wright is the signatory. After the money was rewired to that account, Wright wired $966,000 to Wright’s personal bank account and $700,000 to the CARTON Bank Account. CARTON then wired approximately $188,000 from the CARTON Bank Account, including at least $133,000 in wires to several casinos.
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CARTON, 49, of New York, New York, was convicted of one count of conspiracy to commit securities fraud and wire fraud, one count of wire fraud, and one count of securities fraud. The conspiracy count carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The securities fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and thanked the Boston Regional Office of the U.S. Securities and Exchange Commission, which has filed civil charges against CARTON and CC-1 in a separate action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brendan F. Quigley and Elisha J. Kobre are in charge of the prosecution.
Man who Robbed Bank in Stanton of Approximately $200,000 Sentenced to Federal PrisonRead the Press Release
This week a federal judge sentenced 59-year-old Jose Cruz Iglesias of Midland to 78 months in federal prison followed by three years of supervised release for stealing approximately $200,000 from the Community National Bank in Stanton, TX, on December 23, 2016, announced U.S. Attorney John F. Bash and F.B.I. Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
During sentencing on Monday in Midland, U.S. District Judge David Counts also ordered Iglesias to pay $197,883 restitution to the bank.
On September 17, 2018, Iglesias pleaded guilty to one count of bank robbery. Iglesias admittedly robbed bank tellers while brandishing a revolver. Iglesias has remained in federal custody since being arrested by F.B.I. agents in Odessa on June 22, 2018.
The F.B.I., together with the Stanton and Midland Police Departments, investigated this case. Assistant U.S. Attorneys William F. Lewis prosecuted this case on behalf of the Government.
Man Accused of Being Serial Fraudster Taken into Federal Custody for Allegedly Bilking People while Free on Bond in Prior CaseRead the Press Release
LOS ANGELES – A West Hollywood man was taken into federal custody today in relation to new fraud charges that alleged he participated in a series of scams while free on bond and after pleaded guilty in a prior federal case.
Jeffrey Craig Yohai, 36, who is the former son-in-law of Paul Manafort, was arrested on charges of conspiracy to commit wire fraud and aggravated identity theft.
A criminal complaint outlining alleged criminal conduct over the past year was unsealed today. Yohai made his initial appearance in the new case this afternoon in United States District Court, where he was ordered held without bond pending trial.
The case unsealed today outlines several fraud schemes, which are similar to the criminal conduct outlined in the original federal case. In both criminal cases, Yohai obtained money for what he claimed was a legitimate purpose, such as an investment, but he then used the money for personal expenses or to pay debts. According to court documents, Yohai typically lulled victims into believing that the money had been used properly. When a victim demanded repayment, Yohai often sent checks with insufficient funds, according to court documents. When he was called to account for the bounced checks, he typically claimed that he had wired the money to the victim, a claim he would support with bogus documentation of a wire transfer.
The first case, which resulted in a guilty plea, involved approximately $15 million in real estate loans that supposedly would be used to purchase and rehabilitate properties in the Hollywood Hills. According to court documents, Yohai defaulted on the loans and the properties went into foreclosure – which Yohai tried to delay with bankruptcy filings.
The case unsealed today discusses the prior loan fraud case, as well as evidence of prior scams, including a $6 million investment scheme and a check-kiting scheme involving more than $500,000 in checks that bounced.
The new case alleges a loan fraud scheme related to two of the properties at issue in the original federal case. Here, Yohai allegedly submitted a loan request that contained inflated appraisals. He also attempted to defraud another lender as he attempted to refinance the two properties, and Yohai contacted yet another lender with dramatically inflated appraisals to obtain refinancing – an effort that was rebuffed when that third lender learned of Yohai’s guilty plea earlier this year, according to court documents.
The case unsealed today also contains allegations that Yohai defrauded the owner of a rental property and attempted to lull the owner by showing him a $60,000 check he falsely claimed had been remitted from his ex-wife’s account. There are additional fraudulent acts outlined in the complaint which are the subject of criminal cases filed in state court, including a scam in which he sold non-existent artist passes to the music festival in Coachella.
The charges in the complaint contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If he were to be convicted of the charges in the complaint, Yohai would face a statutory maximum sentence of 20 years in federal prison for the charge of conspiracy to commit wire fraud. The charge of aggravated identity theft carries a mandatory consecutive sentence of two years in prison.
Yohai was originally taken into custody on October 31 by the Los Angeles Police Department on cases filed by local prosecutors. Yohai was in state custody until he was turned over to federal authorities this morning.
The case against Yohai is being investigated by the Federal Bureau of Investigation and the Los Angeles Police Department’s Major Crimes Division.
The two case against Yohai are being handled by Assistant United States Attorney Andrew Brown of the Major Frauds Section.
Louisiana Man Sentenced to 5 years in Federal Prison for Attempting to Purchase CocaineRead the Press Release
Gulfport, Miss – Angel Valdez Deras, age 33, of Terrytown, Louisiana, was sentenced today by U.S. District Judge Louis Guirola, Jr. to 60 months in federal prison, followed by 5 years of supervised release, for attempting to purchase 5 kilograms of cocaine, announced U.S. Attorney Mike Hurst and Derryle Smith, Assistant Special Agent in Charge of the Drug Enforcement Administration.
Valdez Deras pled guilty on July 30, 2018 to one count of attempting to possess with intent to distribute cocaine. Valdez Deras and his co-defendant had previously paid $50,000 to government agents acting as sellers and were en route to pay the remaining money for the purchase of five kilograms of cocaine when they were arrested by law enforcement officers on February 9, 2018.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John Meynardie.
Lockport Man Pleads Guilty to Attempting to Retrieve Cocaine Mailed from Puerto Rico in an Oatmeal ContainerRead 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 Juan M. Serrano Acevedo, also known as Juan Acevedo-Serrano, 36, of Lockport, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to possession with intent to distribute at least 500 grams of cocaine. The charge carries a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that in late October of 2015, the U.S. Postal Inspection Service intercepted a package shipped from Puerto Rico to an address in Lockport. During the execution of a search warrant on the package, law enforcement officers discovered two pounds of cocaine hidden inside an oatmeal canister. At that time, the USPIS removed the cocaine from the package.
On December 30, 2015, Serrano Acevedo went to the Lockport Post Office to sign for and accept the package addressed to him. After exiting the post office, the defendant was arrested. Following the arrest, Serrano Acevedo admitted that he ordered the cocaine, that he had previously received a package that contained cocaine, and that he sold cocaine.
The plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, and the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin.
Sentencing is scheduled for February 14, 2019, at 10:30 a.m. before Judge Geraci.
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Katy Woman Sentenced in Health Care Fraud and Kickback SchemesRead the Press Release
HOUSTON - The owner of three Houston area clinics has been ordered to federal prison following her conviction of conspiracy to commit health care fraud, announced U.S. Attorney Ryan K. Patrick. Joy Aneke, 51, of Katy, entered her plea on May 16, 2018.
Today, U.S. District Judge Kenneth M. Hoyt handed Aneke a 36-month sentence to be immediately followed by three years of supervised release. Aneke was also ordered to pay $2,760,464.57 in restitution to the Medicare program.
Aneke was the owner of Jadac Unique Health Services, Almeda Physicians Clinic and the home health agency Community Joyful Home Health in Harris and Fort Bend Counties. Aneke previously admitted to causing others to submit false and fraudulent claims to Medicare for medical services that were not provided and/or were not authorized by a physician. Specifically, the clinics billed for medical services that were not performed, including services such as allergy testing, complex cystometrograms and anal/urinary muscle studies. The clinics did not have the equipment to provide such services.
As part of her plea, Aneke admitted she directed co-defendant Maureen Henshall, 62, of Highland, to falsify patient records at the clinic by adding tests and procedures that were not performed and/or were not medically necessary in order to increase the reimbursements that the clinics received from Medicare. Aneke instructed others to create false patient records, knowing the records would be used in support of claims billed to Medicare for tests and procedures which were not rendered, not medically necessary and not ordered by a licensed medical professional. Aneke also admitted she instructed Henshall to pay illegal kickbacks to patients to visit the clinics through others known as “recruiters” or marketers.”
Aneke previously admitted she employed Teodoro Seminario, 51, of Houston, who acted as the medical professional for the Jadac clinic, without any proper licensing. Seminario examined, assessed and/or treated patients without the assistance or supervision of any licensed medical professional. Seminario was not a licensed medical professional in the state of Texas. Aneke subsequently caused others to bill for the services Seminario provided as if he was a qualified, licensed medical professional. Seminario and Henshall were sentenced Oct. 29 to three years of supervised release and six months of home confinement for their roles in the scheme.
Aneke and her three clinics billed approximately $5,963,675.88 for medical diagnostic services that were not provided and/or were not authorized by a physician. As a result of the false or fraudulent billings, Medicare paid approximately $2,760,646.57.
Previously released on bond, Aneke was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Department of Health and Human Services-Office of Inspector General and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Michael Day is prosecuting the case.
Justice Department Settles Immigration-Related Discrimination Claim Against New York HotelRead the Press Release
The Justice Department today announced that it has reached a settlement with MJFT Hotels of Flushing LLC (MJFT), the management company operating the Hyatt Place Hotel -- Flushing/Laguardia Airport in Queens, New York. The settlement resolves a complaint that the company discriminated against a work-authorized immigrant in violation of the anti-discrimination provision of the Immigration and Nationality Act (INA).
The Department’s investigation, initiated based on a worker’s complaint, concluded that MJFT engaged in citizenship status discrimination against an asylee by removing him from the hiring process for a job at the hotel because he was not a lawful permanent resident or U.S. citizen. Asylees have permanent work authorization, like U.S. citizens, U.S. nationals, refugees, and lawful permanent residents, and employers may not discriminate against them in hiring unless they have a specific legal justification for doing so.
Under the settlement agreement, MJFT will pay a civil penalty, train its staff, and be subject to departmental monitoring and reporting requirements for three years.
“In general, employers may not restrict the employment opportunities of asylees because of their citizenship or immigration status,” said Principal Deputy Assistant Attorney General John Gore of the Civil Rights Division. “The Department is committed to enforcing workplace laws that prohibit discrimination to ensure that individuals have an opportunity to be fully and fairly evaluated based on their merits when they apply for jobs.”
The Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to retaliation; different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
Johnstown Man Indicted on Drug Charge following Investigation by FBI and Cambria County Drug Task ForceRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The indictment named Shawn R. Kmecak, 37, of Johnstown, Pa.
According to the indictment presented to the court, on March 15, 2018, Kmecak possessed with the intent to distribute less than 100 grams of heroin.
The law provides for a maximum sentence of 20 years in prison and a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Kmecak.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jury Returns Conviction on Assault on Federal Officer ChargeRead the Press Release
SAN DIEGO, CA – On Tuesday, November 6, 2018, a jury found defendant John Leland Combs guilty of assault on a federal officer, in violation of 18 U.S.C. § 111, and high speed flight from a checkpoint, in violation of 18 U.S.C. § 758.
According to the evidence presented at trial, the assault occurred during the early morning hours of September 2, 2017. U.S. Border Patrol Agent Norberto M. Ribac was assigned to the Brown Field Border Patrol Station All-Terrain Vehicle (ATV) Unit patrolling in the area of Tecate, California. At approximately 5:40 a.m., Agent Ribac discovered northbound shoeprints in the sand approximately 300 yards west of the Tecate Port of Entry. Agent Ribac followed the footprints to Industrial Road, where he discovered a single white male, later identified as Defendant John Leland Combs, standing next to his car (a stolen Hyundai Genesis) and talking on his cell phone, mere yards north of the border fence in Tecate.
Agent Ribac approached Defendant and asked him if there was anything or anybody in the vehicle with him. Defendant stated he was alone and voluntarily opened the trunk of the vehicle for Agent Ribac to inspect. As Agent Ribac attempted to request a registration and records checks, he noticed Defendant walking towards the vehicle’s driver side door. Defendant then entered the vehicle in an attempt to leave the area. When Agent Ribac reached into the vehicle through the driver’s side window to turn the engine off, Combs started to drive the Hyundai Genesis with Agent Ribac’s upper body still inside the vehicle. While Agent Ribac was attempting to free himself from the moving vehicle, the vehicle struck him on his right elbow and on the right side of his head, breaking his ATV helmet.
In an attempt to flee the State Route 94 Checkpoint, Combs hit speeds over 70 mph while swerving in and out of traffic on a windy two-lane highway. As Combs veered over the cone lane and into the eastbound lane of the checkpoint, video footage showed the agents successfully deploying spike strips. As one of the agents threw the spike in front of defendant’s car, Combs delivered an obscene gesture before eventually losing control of the car and swerving into a residential driveway. He attempted to flee on foot, but was quickly arrested.
“This office will vigorously prosecute those who assault dedicated U.S. Border Patrol agents and endanger the public with dangerous escape maneuvers,” said U.S. Attorney Adam L. Braverman. “We will not tolerate disrespect for law enforcement and cavalier disregard for community safety.”
“A Border Patrol agent was assaulted by this defendant, who then placed multiple innocent drivers and other agents at serious risk by driving recklessly through east San Diego County,” said Chief Patrol Agent Rodney S. Scott. “I’m proud of my agents who did not allow this criminal to escape arrest, and I am grateful to the United States Attorney’s Office for their hard work and dedication to bring him to justice.”
Combs will be sentenced on February 8, 2019 by U.S. District Court Judge Cathy Bencivengo.
The case was prosecuted by Assistant United States Attorneys Mark Conover, Ryan Sausedo and Katherine McGrath.
DEFENDANT Case No. 17cr3026-CAB
John Leland Combs
AGENCIES
Department of Homeland Security, Border Patrol Intelligence
U.S. Border Patrol
Illegal Charter Operator Pleads Guilty to Violating Coast Guard OrderRead the Press Release
Seth Alan Gissen pled guilty yesterday to knowingly and willfully violating a Captain of the Port Order, in violation of Title 33, United States Code, Section 1232(b)(1).
Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida and Zinnia P. James, Special Agent in Charge, U.S. Coast Guard Investigative Service (CGIS), Southeast Region made the announcement.
According to the court record, Gissen is the registered owner of the motor yacht NO RULES II. On October 26, 2017, during a routine law enforcement boarding, the Coast Guard discovered the yacht NO RULES II operating illegally as a charter vessel. Illegal charters can cause accidents resulting in property damage, injuries, and death.
On October 30, 2017, the Coast Guard issued a Captain of the Port Order to Gissen. This Order required Gissen to immediately cease operating NO RULES II as a passenger vessel until he was in compliance with federal laws and regulations.
On or about August 4, 2018, on Biscayne Bay, a Coast Guard team observed that the yacht NO RULES II appeared to be overloaded and so initiated a law enforcement boarding. An investigation revealed that Gissen was again illegally operating as a commercial charter, in violation of the Captain of the Port Order.
Gissen is scheduled to be sentenced by U.S. District Judge Federico A. Moreno on January 10, 2018, at 10 a.m.
U.S. Attorney Fajardo Orshan commended the investigative efforts of CGIS in this matter. This case is being prosecuted by Coast Guard Special Assistant U.S. Attorney Philip Jones.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Houston, Pa. Residents Indicted on Drug and Gun Charges as Part of Operation Synthetic Opioid SurgeRead the Press Release
PITTSBURGH –A federal grand jury returned an indictment charging two residents of Washington County, Pennsylvania, with violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The six-count indictment, returned under seal on October 9, named Vashaun Lasalle Wright, 29, and Alyssa Ashley Adkins, 29, both of Houston, Pa., as the defendants.
According to the indictment, on March 23, 2018, in the Western District of Pennsylvania, Wright and Adkins possessed with intent to distribute 40 grams or more of fentanyl and a quantity of cocaine. The indictment further charges the defendants with conspiring to distribute 40 grams or more of fentanyl between March 7, 2018, and March 23, 2018. The defendants, both of whom have prior convictions that prohibit them from possessing firearms and ammunition under federal law, are charged with unlawfully possessing three firearms and ammunition on March 23, 2018, and with possessing those firearms in furtherance of a drug trafficking crime.
The law provides for a maximum total sentence for each defendant of not less than 10 years and up to life in prison, a fine of up to $11,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal history of each defendant.
Assistant United States Attorney Jerome A. Moschetta and Special Assistant United States Attorney Rachel Wheeler of the Washington County District Attorney’s Office are prosecuting this case on behalf of the government.
The Washington County District Attorney’s Office Drug Task Force, Pennsylvania State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the indictment in this case.
This case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.). On July 12, 2018, Attorney General Jeff Sessions selected the Western District of Pennsylvania as one of ten districts from across the country to implement the program. All cases involving the illegal distribution of synthetic opioids, such as fentanyl, arising in Washington County, Pennsylvania will be systematically prosecuted in federal court. The surge in federal resources has the twin goals of reducing the number of overdose fatalities and eliminating drug trafficking in synthetic opioids. The United States Attorney’s Office and the Drug Enforcement Administration, along with the Washington County District Attorney’s Office, the Pennsylvania State Police, and local Washington County Police Departments, are leading Operation Synthetic Opioid Surge (S.O.S.).
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Houma Man Sentenced in Conspiracy to Traffic MethamphetamineRead the Press Release
U.S. Attorney Peter G. Strasser announced that DAMIEN JACKSON, age 37, of Houma, LA, was sentenced today after having pled guilty to conspiracy to distribute and to possess with intent to distribute 50 grams or more of a mixture containing methamphetamine.
United States District Judge Martin L.C. Feldman sentenced JACKSON to 125 months’ imprisonment and a supervised release period of 4 years.
According to court documents, on July 5, 2016, law enforcement arrested JACKSON shortly after JACKSON took possession of a U.S. mail parcel containing approximately 455 grams of methamphetamine. JACKSON admitted that he intended to sell a portion of the methamphetamine to his codefendant, James Siglar. For his part, Siglar was later arrested, pled guilty, and was sentenced to 37 months’ incarceration.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, the Houma Police Department, and the Terrebonne Parish Sheriff’s Office. Assistant U.S. Attorneys James S.C. Baehr and Brandon S. Long are in charge of the prosecution.
Hot Springs Man Sentenced to over 17 Years in Federal Prison for Online Enticement of A Minor and Ammunition PossessionRead the Press Release
Hot Springs, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Todd McDonald, age 35, of Hot Springs, Arkansas, was sentenced today to 210 months in federal prison followed by ten years of supervised release on one count each of Online Enticement of a Minor and Unlawful Possession of Ammunition. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, in November, 2016 agents with the Federal Bureau of Investigation were contacted by the mother of a 12 year old girl who resides in Hot Springs, Arkansas regarding sexually explicit text messages sent by an apparent 30 year old adult male. F.B.I. agents viewed messages sent by a person using the user name “Mr. Nobody”, later identified as Todd McDonald to the 12 year old girl via Instagram. The messages included statements from McDonald stating he wanted to take sexually explicit pictures and videos of the girl. Upon questioning, McDonald admitted to sending those messages. On January 4, 2017, FBI agents executed a search warrant of McDonald’s Hot Springs residence where they located, among other contraband, .38 special ammunition, which McDonald was prohibited from possessing based on his criminal history.
A federal grand jury indicted McDonald in April 2017, and he pleaded guilty in October of 2017.
This case was investigated by the FBI. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Heroin Supplier Convicted After Jury Trial in White Plains Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that LEIBYS MERCEDES was found guilty today of conspiring to distribute heroin. A unanimous jury convicted MERCEDES after a four-day trial before United States District Judge Kenneth M. Karas.
U.S. Attorney Geoffrey S. Berman said: “As proven at trial, Leibys Mercedes contributed to the rising tide of heroin that is plaguing Westchester County and its vicinity. The verdict should send a message to criminals who seek to profit by flooding our community’s streets with lethal drugs.”
According to court documents and the evidence at trial:
From January 2017 up to July 2017, LEIBYS MERCEDES, a/k/a “Celly,” conspired to distribute 100 grams and more of heroin. MERCEDES supplied heroin to other dealers in the Yonkers area.
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MERCEDES, 37, of the Bronx, New York, was convicted of conspiracy to distribute heroin, which carries a maximum sentence of 40 years in prison, and a mandatory minimum terms of five years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
MERCEDES is scheduled to be sentenced on April 9, 2018, before Judge Karas.
Mr. Berman praised the outstanding work of the Drug Enforcement Administration’s Westchester Resident Office and the Narcotics Unit of the City of Yonkers Police Department.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Samuel L. Raymond, Daniel M. Loss, Celia Cohen, and Michael D. Maimin are in charge of the prosecution.
Hartford Felon Charged with Possessing Loaded GunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a grand jury sitting in Hartford returned an indictment yesterday charging JOSE TORRES, 32, of Hartford, with one count of unlawful possession of a firearm and ammunition by a convicted felon.
The indictment alleges that, on September 7, 2018, TORRES unlawfully possessed a loaded Hi-Point Model JHP .45 caliber pistol in Hartford.
It is further alleged that TORRES’s criminal history includes felony convictions in March 2008 for possession with intent to distribute narcotics and first-degree robbery and, in March 2013, for second-degree robbery.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of the offense, TORRES faces a maximum term of imprisonment of 10 years.
TORRES has been detained in state custody since his arrest on September 7.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Harrisburg Man Convicted of Firearms Offenses and Three Armed RobberiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Maurice L. Ross, age 35, of Harrisburg, Pennsylvania, was convicted on November 6, 2018, for unlawful possession of a firearm as a convicted felon and three armed robberies after a two-day jury trial before United States District Court Judge Yvette Kane.
According to United States Attorney David J. Freed, the jury returned the verdict after approximately two hours of deliberations and convicted Ross of three counts of a felon in possession of a firearm (a Charter Arms .38 caliber revolver), three counts of interference with commerce by threats or violence, and three counts of carrying and brandishing a firearm in furtherance of a crime of violence.
Ross robbed the Brookwood Mart, located in Harrisburg, by gunpoint on three separate occasions on December 8, 17, and 22, 2016. Each time, he stole hundreds of dollars of cash from the store registers. Two of the three times, he also stole dozens of instant lottery tickets.
There was surveillance footage from the robberies, but Ross was heavily hooded and masked, so identification was a significant issue, but Ross cashed some of the stolen lottery tickets the morning after one of the robberies at another convenience store, before the tickets could even be reported stolen. The PA Lottery provided the location, date and time of the cashings, and Harrisburg detectives were able to review in-store surveillance videos at the store where the tickets were cashed. That surveillance footage revealed a license plate that led detectives to Ross’ residence where a search warrant was executed. Detectives found the very distinctive gun Ross used in all three robberies, a shirt tied like a mask, a pair of black boots, a black knit hat and a flat-brimmed hat seen in surveillance footage.
The case was investigated by the Harrisburg Police Department. Assistant United States Attorneys James T. Clancy and Carl Marchioli prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each of the unlawful possession of firearm charges is 10 years in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for each of the armed robbery charges is 20 years in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for each charge of brandishing a firearm during a crime of violence is life in prison; each of those charges carries a mandatory consecutive 25-year sentence. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Greenville Man Sentenced for Firearm ChargeRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, United States District Judge Louise W. Flanagan sentenced DANIEL LEE WADE, JR., 24, of Greenville, North Carolina to 120 months of imprisonment followed by 3 years of supervised release.
WADE was named in an Indictment filed on December 20, 2017. On March 12, 2018, WADE pleaded guilty to one-count of Possession of a Firearm and Ammunition by a Felon.
On July 16, 2017, two females drove to talk to WADE at his apartment building in Greenville. One of the females and WADE were talking outside when WADE’S mother came out and began arguing with the female. As the argument escalated, WADE’ mother insisted that the female victim stay. The driver urged her friend to get in the vehicle, which she did. WADE’S mother then stepped in front of the vehicle in an apparent effort to block them in. As the vehicle was attempting to drive away, WADE began shooting at it. After realizing her friend had been hit, the driver tried driving to the hospital, but was stopped less than a mile away due to a flat tire, and called 911. The Greenville Police Department (GPD) subsequently responded to a parking lot in Greenville, where the two females were located. The passenger had sustained a gunshot wound to the right hip area and was bleeding significantly. She was transported to the hospital for medical treatment. The victim provided a brief statement wherein she advised that WADE had struck her with a gun just prior to shooting her. Upon examination of the vehicle involved in the shooting, GPD observed a total of nine bullet holes, along with one that pierced the rear tire. Police searched the area in front of WADE’S apartment where they located 7 .40 caliber shell casings. A State arrest warrant was subsequently issued charging WADE with Assault With a Deadly Weapon With Intent to Kill or Inflict Serious Injury and Discharging a Firearm Into Occupied Property Inflicting Serious Injury.
On July 20, 2017, GPD located WADE sitting in the front passenger seat of a vehicle in Greenville. The driver of the vehicle told authorities that a firearm was inside the glove box. A .40 caliber pistol was found loaded with 13 rounds of ammunition. WADE was taken into custody on the outstanding warrant and was also charged with Possession of a Firearm by a Felon. Ballistic testing determined that the firearm matched the casings recovered from the previously mentioned shooting on July 16, 2017. ATF records revealed that driver was the registered owner of the gun; however, forensic analysis later confirmed that WADE’S DNA was present on the firearm and magazine.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, Wayne County Sheriff’s Office, and the Greenville Police Department Gun Violence Reduction Unit conducted the criminal investigation of this case. Assistant United States Attorney James J. Kurosad handled the prosecution of this case for the government.
Grand Jury Adds Wildlife Charges to Murder-For-Hire Allegations Against "Joe Exotic"Read the Press Release
OKLAHOMA CITY – JOSEPH MALDONADO-PASSAGE, also known as Joseph Allen Maldonado, Joseph Allen Schreibvogel, and "Joe Exotic," 55, formerly of Wynnewood, Oklahoma, has been charged in a 21-count superseding indictment that includes the two previously charged murder-for-hire counts and also alleges nineteen wildlife crimes, including the alleged killing of five tigers and the illegal sale of tiger cubs, in violation of the Endangered Species Act and Lacey Act, announced Robert J. Troester of the U.S. Attorney’s Office for the Western District of Oklahoma.
On September 5, 2018, a federal grand jury returned an indictment that accuses Maldonado-Passage of hiring an unnamed person in November 2017 to murder "Jane Doe" in Florida. According to the indictment, Maldonado-Passage gave the unnamed person $3,000 to travel from Oklahoma to South Carolina and then to Florida to carry out the murder. He allegedly agreed to pay thousands more after the deed. The indictment alleges Maldonado-Passage caused the person to travel to Dallas to get fake identification for use in the plot. According to the indictment, the person traveled from Oklahoma to South Carolina on November 26, 2017.
In a second count, the September 5 indictment alleges that beginning in July 2016, Maldonado-Passage repeatedly asked a different unnamed person to find someone to murder Jane Doe in exchange for money. The second person put Maldonado-Passage in contact with an undercover FBI agent. Maldonado-Passage met with the undercover agent on December 8, 2017, to discuss details of murdering Jane Doe.
The U.S. Marshals Service arrested Maldonado-Passage in Gulf Breeze, Florida, on September 7, 2018. He has been ordered detained in the Marshals’ custody pending trial.
According to the superseding indictment handed down today, Maldonado-Passage shot and killed five tigers in October 2017 to make room for cage space for other big cats. Because tigers are an endangered species, these alleged killings violated the Endangered Species Act. He is also charged with violating the Endangered Species Act by selling and offering to sell tiger cubs in interstate commerce. These crimes are alleged to have taken place from November 16, 2016, to March 6, 2018.
The remaining wildlife counts allege violations of the Lacey Act, which makes it a crime to falsify records of wildlife transactions in interstate commerce. According to these counts, Maldonado-Passage designated on delivery forms and Certificates of Veterinary Inspection that tigers, lions, and a baby lemur were being donated to the recipient or transported for exhibition only, when he knew that they were being sold in interstate commerce. One count alleges that Maldonado-Passage sold in interstate commerce a two-week-old lion cub.
If Maldonado-Passage is found guilty of murder-for-hire, he could be imprisoned on each count up to ten years. He would also be subject to up to three years of supervised release and a fine of up to $250,000 per count. If convicted of a violation of the Endangered Species Act, he could be sentenced on each count to one year in prison, a fine of $100,000, and one year of supervised release. Each Lacey Act violation could carry a prison term of five years, a fine of $250,000, and three years of supervised release.
"The investigation of murder-for-hire and wildlife allegations has required close coordination among law enforcement," said Mr. Troester. "We will work hard to protect people as well as wildlife and deter these sorts of crimes."
"The U.S. Fish and Wildlife Service is committed to combating illegal wildlife trafficking and protecting our wildlife resources for the benefit of future generations," said Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service Edward Grace. "We thank our partners at the FBI, U.S. Marshals Service, Oklahoma Department of Wildlife Conservation, and the Department of Justice for their help in this case. Together we will continue to investigate and prosecute those who engage in unlawful wildlife trafficking for monetary gain."
Oklahoma City FBI Special Agent-in-Charge Kathryn Peterson said: "The FBI appreciates our law enforcement partners and the combined efforts which thwarted this murder-for-hire plot and uncovered these serious wildlife crimes."
This case is the result of an investigation by the U.S. Fish and Wildlife Service Office of Law Enforcement, the FBI, and the Oklahoma Department of Wildlife Conservation, with assistance from the U.S. Marshals Service. Assistant U.S. Attorneys Amanda Green and Charles W. Brown are prosecuting the case.
The public is reminded that these charges are merely allegations and that Maldonado-Passage is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
Former U.S. Congressman Sentenced to 120 Months for Extensive Fraud, Tax and Election Crimes SchemeRead the Press Release
HOUSTON – A former U.S. Congressman was sentenced today to 120 months in prison and ordered to pay $1,014,718.51 in restitution, to be followed by three years of supervised release, for orchestrating a four-year scheme to defraud charitable donors of hundreds of thousands of dollars and secretly to funnel the proceeds to pay for personal expenses and to illegally finance his campaigns for public office.
U.S. Attorney Ryan K. Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division and Special Agent in Charge D. Richard Goss of the IRS Criminal Investigation (CI) Houston Field Office made the announcement.
“At trial, the government proved to the jury that former congressman stockman ran his campaign and fraudulent charities to simply enrich himself and defrauded well-meaning donors,” said Patrick. “This type of corruption by public officials gives our entire democratic system a black eye.”
“Former Representative Stockman stole hundreds of thousands of dollars from charities, then used the money to pay personal expenses and fund his political campaigns,” said Benczkowski. “As this case demonstrates, the Justice Department and our law enforcement partners will aggressively pursue corrupt public officials, including those who seek to corrupt our elections for personal gain.”
Former U.S. Representative Stephen E. Stockman, 61, was convicted by a federal jury in Houston on April 12 of 23 counts of mail fraud, wire fraud, conspiracy to make conduit contributions and false statements to the Federal Election Commission (FEC), making false statements to the FEC, making excessive coordinated campaign contributions, money laundering and filing a false tax return. Two of Stockman’s former congressional staffers previously pleaded guilty in the case. Thomas Dodd, 39, of Houston, pleaded guilty March 20, 2017, to one count of conspiracy to commit mail and wire fraud and one count of conspiracy to make conduit contributions and false statements. Jason T. Posey, 48, of Tupelo, Mississippi, pleaded guilty Oct. 11, 2017, to one count of mail fraud, one count of wire fraud,and one count of money laundering.
“Former Congressman Stockman was entrusted by his constituents to serve in their best interest,” said DeSarno. “Instead, Stockman used his position in a series of schemes for personal gain at the expense of the public. Today’s sentence should send a clear message that the laws of the land apply to everyone, regardless of position or power. The FBI and our partners at the IRS will continue our efforts to identify fraudulent practices carried out by elected representatives. Public officials who abuse their position will be investigated, prosecuted, and subjected to the full punishment of the law for their actions.”
“Congressman Stockman used his position to defraud charitable foundations to advance his political career and pay for personal expenses,” said Goss. “His actions and failure to pay taxes on these illicit funds not only undermines the American tax system, but cultivates a lack of trust in our elected officials. Today’s sentencing demonstrates IRS-CI’s commitment to bring justice to those public officials who believe they are above the law.”
According to the evidence presented at trial, from May 2010 to February 2014, Stockman and his co-defendants solicited $1,250,571.65 in donations from charitable organizations and the individuals who ran those organizations based on false pretenses, then used a series of sham nonprofit organizations and dozens of bank accounts to launder the money before it was used for a variety of personal and campaign expenses.
Specifically, the evidence established that in 2010, Stockman and Dodd solicited an elderly donor in Baltimore, Maryland, for $285,000 to be used for legitimate charitable and educational purposes. Stockman and Dodd used a sham charity named the Ross Center to funnel the money to be used for a variety of personal expenses. The evidence further established that, in 2011 and 2012, Stockman and Dodd received an additional $165,000 in charitable donations from the Baltimore donor, much of which Stockman used illegally to finance his 2012 congressional campaign.
The trial evidence also showed that shortly after Stockman took office as a Member of the U.S. House of Representatives in 2013, he and Dodd used the name of another sham nonprofit entity, Life Without Limits, to solicit and receive a $350,000 charitable donation, to be used to create an educational center called the Freedom House. Stockman, Dodd and Posey instead used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, a covert surveillance project targeting a perceived political opponent, an in-patient alcoholism treatment for a female associate and payments for hundreds of thousands of robocalls and mailings promoting Stockman’s candidacy for U.S. Senate in early 2014.
In addition, the evidence established that, in connection with Stockman’s Senate campaign, Stockman and Posey used another sham nonprofit entity to secure a $450,571.65 donation in order to fund a purportedly legitimate independent expenditure promoting Stockman’s candidacy. The evidence showed that the purportedly independent expenditure was in fact secretly controlled by Stockman who directed his campaign and Posey to file false affidavits with the FEC covering up Stockman’s involvement.
Finally, the evidence at trial demonstrated Stockman failed to pay taxes on any of the $1,250,571.65 in fraudulently acquired donations. In addition, during the early stages of the investigation, Stockman directed Posey to flee to Cairo, Egypt, for two and a half years so that Posey could not be questioned by law enforcement.
The FBI and IRS-CI conducted the investigation. Assistant U.S. Attorney Melissa Annis and Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section are prosecuting the case.
Former U.S. Congressman Sentenced to 10 Years in Prison for Extensive Fraud, Tax, and Election Crimes SchemeRead the Press Release
Former U.S. Congressman Stephen E. Stockman was sentenced today to serve 120 months in prison and ordered to pay $1,014,718.51 in restitution, to be followed by three years of supervised release, for orchestrating a four-year scheme to defraud charitable donors of hundreds of thousands of dollars and secretly to funnel the proceeds to pay for personal expenses and to illegally finance his campaigns for public office.
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, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division and Special Agent in Charge D. Richard Goss of the IRS Criminal Investigation (IRS-CI) Houston Field Office, made the announcement.
“Former Representative Stockman stole hundreds of thousands of dollars from charities, then used the money to pay personal expenses and fund his political campaigns,” said Assistant Attorney General Benczkowski. “As this case demonstrates, the Justice Department and our law enforcement partners will aggressively pursue corrupt public officials, including those who seek to corrupt our elections for personal gain.”
“At trial, the government proved to the jury that former Congressman Stockman ran his campaign and fraudulent charities to simply enrich himself and defrauded well-meaning donors,” said U.S. Attorney Patrick. “This type of corruption by public officials gives our entire democratic system a black eye.”
Former U.S. Representative Stephen E. Stockman, 61, was convicted by a federal jury in Houston on April 12, of 23 counts of mail fraud, wire fraud, conspiracy to make conduit contributions and false statements to the Federal Election Commission, making false statements to the Federal Election Commission, making excessive coordinated campaign contributions, money laundering, and filing a false tax return. Two of Stockman’s former congressional staffers previously pleaded guilty in the case. Thomas Dodd, 39, of Houston, Texas, pleaded guilty on March 20, 2017, to one count of conspiracy to commit mail and wire fraud and one count of conspiracy to make conduit contributions and false statements. Jason T. Posey, 48, of Tupelo, Mississippi, pleaded guilty on Oct. 11, 2017, to one count of mail fraud, one count of wire fraud, and one count of money laundering.
“Former Congressman Stockman was entrusted by his constituents to serve in their best interest,” said FBI Special Agent in Charge DeSarno. “Instead, Stockman used his position in a series of schemes for personal gain at the expense of the public. Today’s sentence should send a clear message that the laws of the land apply to everyone, regardless of position or power. The FBI and our partners at the IRS will continue our efforts to identify fraudulent practices carried out by elected representatives. Public officials who abuse their position will be investigated, prosecuted, and subjected to the full punishment of the law for their actions.”
“Congressman Stockman used his position to defraud charitable foundations to advance his political career and pay for personal expenses,” said IRS-CI Special Agent in Charge Goss. “His actions and failure to pay taxes on these illicit funds not only undermines the American tax system, but cultivates a lack of trust in our elected officials. Today’s sentencing demonstrates IRS-Criminal Investigation’s commitment to bring justice to those public officials who believe they are above the law.”
According to the evidence presented at trial, from May 2010 to February 2014, Stockman and his co-defendants solicited $1,250,571.65 in donations from charitable organizations and the individuals who ran those organizations based on false pretenses, then used a series of sham nonprofit organizations and dozens of bank accounts to launder the money before it was used for a variety of personal and campaign expenses.
Specifically, the evidence established that in 2010, Stockman and Dodd solicited an elderly donor in Baltimore, Maryland for $285,000 to be used for legitimate charitable and educational purposes. Stockman and Dodd used a sham charity named the Ross Center to funnel the money to be used for a variety of personal expenses. The evidence further established that, in 2011 and 2012, Stockman and Dodd received an additional $165,000 in charitable donations from the Baltimore donor, much of which Stockman used illegally to finance his 2012 congressional campaign.
The trial evidence also showed that shortly after Stockman took office as a Member of the U.S. House of Representatives in 2013, he and Dodd used the name of another sham nonprofit entity, Life Without Limits, to solicit and receive a $350,000 charitable donation, to be used to create an educational center called the Freedom House. Stockman, Dodd, and Posey instead used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, a covert surveillance project targeting a perceived political opponent, an in-patient alcoholism treatment for a female associate, and payments for hundreds of thousands of robocalls and mailings promoting Stockman’s candidacy for U.S. Senate in early 2014.
In addition, the evidence established that, in connection with Stockman’s Senate campaign, Stockman and Posey used another sham nonprofit entity to secure a $450,571.65 donation in order to fund a purportedly legitimate independent expenditure promoting Stockman’s candidacy. The evidence showed that the purportedly independent expenditure was in fact secretly controlled by Stockman, who directed his campaign and Posey to file false affidavits with the FEC covering up Stockman’s involvement.
Finally, the evidence at trial demonstrated that Stockman failed to pay taxes on any of the $1,250,571.65 in fraudulently acquired donations. In addition, during the early stages of the investigation, Stockman directed Posey to flee to Cairo, Egypt, for two and a half years so that Posey could not be questioned by law enforcement.
The FBI and IRS-CI investigated the case. Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Melissa Annis of the Southern District of Texas are prosecuting the case.
Former Recruiter of U.S. Military Language Interpreters Indicted for Alleged Scheme That Resulted in Unqualified Language Interpreters Being Deployed with U.S. Combat Forces in AfghanistanRead the Press Release
A former recruiter of U.S. military language interpreters was charged in an indictment filed today for his role in an alleged scheme to recruit unqualified language interpreters to be deployed with U.S. combat forces in Afghanistan in 2011 and 2012, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Inspector General for Afghanistan Reconstruction John F. Sopko.
Abdul Aman, 34, of Fairfax, Virginia, was charged in the District of Maryland with one count of conspiracy to commit mail fraud and wire fraud and one count of major fraud against the United States. Aman will be arraigned on the charges on Nov. 8.
The indictment alleges that Aman, while working as a recruiter for a U.S. government contractor, circumvented procedures designed to ensure that candidates for jobs as language interpreters for the U.S. military met minimum proficiency standards, which resulted in unqualified language interpreters being hired and later deployed alongside U.S. combat forces in Afghanistan. Aman’s employer was a subcontractor on a multimillion-dollar Defense Department contract to supply qualified language interpreters to support U.S. military operations around the world. To carry out the fraud, the indictment alleges, Aman arranged for a close associate to take language tests for candidates who Aman knew did not meet minimum proficiency standards. Aman allegedly obtained financial bonuses from his employer based on the number of candidates whom his employer hired through his efforts.
This case was investigated by the Special Inspector General for Afghanistan Reconstruction and the U.S. Army’s Criminal Investigation Command. The case is being prosecuted by Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section.
Former Owner and CEO of Wind Energy Company Charged in Million Dollar Fraud SchemeRead the Press Release
United States Attorney Erica H. MacDonald announced a federal indictment charging KERRY DALE KISSLINGER, 58, former owner and CEO of a wind energy company, with five counts of wire fraud in a $1 million fraud scheme.
According to the indictment, KISSLINGER was the owner and CEO of ES Windpower, Inc., a Minnesota corporation that sold wind turbines to farmers, ranchers, and others in Minnesota and throughout the Midwest. KISSLINGER marketed the wind turbines as a way for customers to save money by reducing or even eliminating their energy expenses. Beginning in 2012 until 2015, KISSLINGER devised and executed a scheme to defraud ES Windpower customers by falsely representing that in exchange for payment, KISSLINGER and his company would deliver and install a wind turbine on the customers’ farms or land.
As alleged in the indictment, ES Windpower had a distribution agreement with a North Dakota-based wind turbine manufacturer (“Company A”). The terms of the distribution agreement required ES Windpower to provide Company A with a purchase order, contract, and 30 percent down payment for each new order. The balance of the purchase price was due when Company A delivered the product to ES Windpower. Oftentimes, KISSLINGER failed to send the down payment to Company A and other manufacturers to purchase the wind turbines or otherwise complete any work on the project. On other occasions, KISSLINGER remitted some of the down payment to the manufacturer, but did not complete the ordering process.
As alleged in the indictment, KISSLINGER regularly used some or all of the customers’ payments for personal use and benefit, including to make a $45,000 down payment on the purchase of a lakefront home in Emmons, Minnesota, and to purchase Minnesota Timberwolves season tickets. KISSLINGER at times solicited a second payment from his customers by falsely representing that all or part of their wind turbine was ready to be shipped and installed, despite knowing that he had not placed the orders or made the down payments to the manufacturer. KISSLINGER also falsely represented to some of his customers that each turbine ordered would be protected by a $100,000 bond, which would be used to refund their money if ES Windpower was unable to complete the delivery and installation. KISSLINGER falsely told customers that his failure to deliver and install their wind turbines was due to manufacturing delays. In reality, KISSLINGER knew the delays were caused by his own failure to complete the ordering process and remit his customers’ down payments to the manufacturers. In total, KISSLINGER fraudulently solicited and received more than $1 million in payments from customers.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Joseph H. Thompson is prosecuting the case.
Defendant Information:
KERRY DALE KISSLINGER, 58
Humble, Texas
Charges:
- Wire fraud, 5 counts
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The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former LMPD Officer Indicted for Enticing Minors, Distribution, and Possession of Child PornRead the Press Release
LOUISVILLE, Ky. – A former Louisville Metro Police Department officer has been indicted by a federal grand jury for enticement, attempted enticement, possession of child pornography, transfer of obscene materials to a minor and distribution of child pornography.
“No person is above the law; especially one entrusted with the authority of a police officer, who then abuses that authority to prey on the vulnerable,” stated U.S. Attorney Russell M. Coleman. “Today’s multi-count indictment of Mr. Betts is a testament to that notion in the Western District of Kentucky”
“Today’s indictment is the first for Louisville’s Public Corruption Civil Rights Task Force, where we have combined local, state and federal resources to work together to investigate allegations of corruption or color of law violations,” said FBI SAC James Robert Brown Jr. “It is an example of the process working, and there will be others. The people of Louisville deserve to have confidence in their elected and law enforcement officials. This indictment serves as a reminder the Task Force will root out those who choose to violate this trust.”
The seven count Indictment charges Kenneth R. Betts, 34, of Shelbyville, Kentucky, with one count of distribution of child pornography, one count of possession of child pornography, three counts of enticement of an individual under the age of 18 years to engage in sexual activity, one count of transfer of obscene materials to an individual under the age of 16, and one count of attempted enticement of an individual under the age of 18.
According to the Indictment: Betts enticed John Doe 1, an individual who was not yet 18 years old, between February 2006 and February 2008, to engage in sexual activity; Betts enticed John Doe 2, an individual who was not yet 18 years old, between May 2010 and May 2014, to engage in sexual activity; Betts enticed Jane Doe 1, an individual who was not yet 18 years old, between June 2013 and July 2013, to engage in sexual activity; and Betts attempted to entice John Doe 3, an individual who was not yet 18 years old, between September and November of 2014, to engage in sexual activity.
If convicted Betts faces no less than five years and no more than 20 years in prison for distribution of child pornography, no more than 10 years for possession of child pornography, no less than 10 years for each count of enticement and attempted enticement, and no more than 10 years for transfer of obscene material to a minor. The charges also carry a potential term of supervised release of no less than 5 years up to a term of life.
Assistant United States Attorney Jo E. Lawless is prosecuting the case, and it is being investigated by the Federal Bureau of Investigation (FBI) and the Louisville Metro Police Department Public Integrity Unit.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Former Correctional Officer Guilty of Abusive Sexual Contact with InmateRead the Press Release
PHOENIX – Darrell E. McCoy, 51, formerly of Scottsdale, Ariz., was found guilty by a federal jury in Phoenix of two counts of abusive sexual contact with an inmate under his supervision. The case was tried before U.S. District Judge Douglas L. Rayes last week. Sentencing is set for Feb. 25, 2019.
The evidence at trial showed that in late 2016, while acting as the foreman of a crew of female inmates, Correctional Officer McCoy began a relationship with an inmate under his supervision. Between September and December 2016, McCoy had sexual contact with the inmate in different locations on the prison grounds. McCoy also gave “love notes” to the inmate prior to her release from the facility, and they continued the relationship and exchanged many text messages over four months following her release.
“McCoy abused his position of authority when he engaged in sexual conduct with an inmate under his supervision,” said First Assistant U.S. Attorney Elizabeth A. Strange. “The U.S. Attorney’s Office is committed to prosecuting all illegal abuses of power wherever they occur.”
“Darrell McCoy’s duty was to protect the inmates at the prison where he worked, but instead he abused his power by engaging in sexual conduct with one of those inmates. Today’s verdict sends a clear message: such abuse will not be tolerated,” stated Special Agent In Charge Sandra D. Barnes of the U.S. Department of Justice Office of the Inspector General’s Denver Field Office.
The investigation in this case was conducted by the Department of Justice-Office of the Inspector General. The prosecution was handled by Gayle Helart and Monica N. Edelstein, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-01410-PHX-DLR
RELEASE NUMBER: 2018-146_McCoy
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Former Commodities Trading Executive Arrested for Scheme to Defraud Employer by Hiding Trading LossesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal complaint charging DAVID SMOTHERMON with wire fraud, in connection with a scheme to hide from his employer trading losses he incurred, by causing false entries to be made in the employer’s accounting system. SMOTHERMON was arrested yesterday in Houston, Texas, and is expected to be presented in federal court in Houston today.
U.S. Attorney Geoffrey Berman said: “As alleged, David Smothermon lied to his employer to conceal trading losses. He allegedly caused others to make false entries in his company’s accounting system to cover up the losses and reap substantial compensation. Smothermon’s actions allegedly caused his employer significant financial harm. Thanks to the FBI, David Smothermon has been apprehended and awaiting prosecution for his alleged self-dealing.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “As alleged, after incurring significant trading losses, Smothermon took advantage of his position and manipulated the system to hide those losses from his employer and save his own skin. As a direct result of his selfish and criminal actions, the company lost millions of dollars, and other workers lost their livelihoods. We don’t take these crimes lightly, and we will continue to investigate and bring to justice any individual who criminally misuses his or her position for personal gain.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
From 2005 through early September 2016, SMOTHERMON worked for a privately owned firm, headquartered in Manhattan, engaged in the international marketing, distribution, and trading of commodities products (the “Company”). SMOTHERMON ran a subsidiary of the Company, based in Houston, Texas, specializing in the trading of liquefied petroleum gas or “LPG” (the “Subsidiary”). The Subsidiary engaged in two forms of LPG trading: entering into and executing contracts for the purchase and sale of barrels of LPG, and trading financial derivative products related to LPG in an over-the-counter market.
From December 2015 up to and September 2016, SMOTHERMON caused false entries to be entered into an electronic accounting system used by the Company in an effort to hide substantial trading losses generated by the Subsidiary’s derivatives trading. SMOTHERMON repeatedly caused others working for the Subsidiary to make false entries in the accounting systems. For example, in or about August 2016, SMOTHERMAN instructed an employee to make a change in the accounting system to make it appear that a contract for the purchase of LPG entitled the Subsidiary to purchase twice as much LPG as was in fact contracted for, at the same price, essentially doubling the Subsidiary’s profits.
SMOTHERMON caused these false entries to be made in an effort to retain his job and the significant compensation due to him in connection with his employment, including a bonus of more than $14 million awarded to him in May 2016. As a result of the false entries made at SMOTHERMON’s direction, the Company overestimated the Subsidiary’s potential profits by in excess of approximately $35 million.
In the face of an upcoming audit of the Subsidiary by the Company, SMOTHERMAN resigned in or about September 2016. In part as a result of the false entries discovered by the Company in the period that followed, the Company liquidated the derivatives positions held by the Subsidiary at a substantial loss and laid off workers.
* * *
SMOTHERMON, 48, of Houston, Texas, is charged in the Complaint with one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the FBI in this case.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Katherine Reilly is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former City of Plymouth Official Sentenced to 24 Months in Prison for Illegal Bribery and Kickback SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of RONNIE EUGENE TAGGART, 51, to 24 months in prison for soliciting and receiving bribes and kickbacks in exchange for awarding City of Plymouth contracts. TAGGART pleaded guilty on May 1, 2018, to one count of wire fraud and was sentenced earlier today before Senior Judge Michael J. Davis in United States District Court in Minneapolis, Minnesota.
United States Attorney MacDonald thanked the Special Agents with the FBI for their hard work and expertise in investigating public corruption cases such as this.
“The public trusts that their government officials are honest and will always work in the best interest of the citizens they represent. The defendant took advantage of that trust and used it for his own gain and we believe today’s sentence will serve as an appropriate punishment for his crimes,” said FBI Special Agent in Charge Jill Sanborn. “I want to commend the work of the investigative team on this matter, as their work on this case shows that the FBI will continue to ensure that the public’s faith in their leaders is protected.”
According to the defendant’s guilty plea and documents filed in court, from approximately October 2012 through November 2016, TAGGART was the Facilities Supervisor for the City of Plymouth, Minnesota. In his position, TAGGART was responsible for the maintenance of all buildings owned and operated by the City of Plymouth, including the authority to award contracts for City projects such as building maintenance and cleaning, landscaping, and snow removal.
According to the defendant’s guilty plea and documents filed in court, from approximately 2014 through November 2016, TAGGART devised a scheme to defraud the City of Plymouth by soliciting and receiving bribes and kickbacks in exchange for awarding City contracts to various contractors outside of the competitive bidding process mandated by Minnesota state law and City of Plymouth procurement policy. TAGGART solicited and received cash kickbacks based on the total value of certain contracts. On other contracts, TAGGART received a flat cash kickback amount from the contractor. TAGGART also solicited and received non-cash bribes from certain City contractors, including items and services for TAGGART’S home, such as thousands of dollars in kitchen appliances, installation of new carpet, a concrete driveway, a garage door, a yard irrigation and sprinkler system, and extensive landscaping and electrical work. All of these items and services were provided to TAGGART at no cost.
According to the defendant’s guilty plea and documents filed in court, in order to conceal his failure to comply with the competitive bidding requirements, TAGGART instructed the bribe- and kickback-paying contractors to submit a second, fake quotation to give the false appearance that TAGGART had complied with the state statute and City policy. TAGGART also encouraged the bribe- and kickback-paying contractors to inflate the amount of their bids to cover the cost of the kickbacks and bribes. In total, TAGGART solicited and received bribes and kickbacks worth approximately $58,532.
This case was the result of an investigation conducted by the FBI.
Assistant United States Attorney Joseph H. Thompson prosecuted the case.
Defendant Information:
RONNIE EUGENE TAGGART, 51
Golden Valley, Minn.
Convicted:
- Wire fraud, 1 count
Sentenced:
- 24 months in prison
- Two years of supervised release
- $58,352 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Felon Sentenced for Stockpiling Firearms and Attempting to Obstruct JusticeRead the Press Release
NORFOLK, Va. – A Suffolk man was sentenced today to more than eight years in prison for being a felon in possession of more than a dozen firearms and attempting to obstruct justice.
According to court documents, Richard Allen Patterson, 47, a previously convicted felon, conspired with his wife to stockpile in their home at least 23 rifles, shotguns, and handguns and hundreds of rounds of ammunition. Once they learned that ATF was investigating them, they attempted to cover up their crimes by lying to federal authorities, tampering with witnesses, including their own teenage daughters, hiding evidence, and attempting to fabricate evidence to exonerate Patterson. One egregious obstruction example was when Patterson had his wife change the registered address of their business weeks after ATF executed a search warrant for the property and then moved to suppress the warrant because ATF included the “wrong” address in it.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of a renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney William B. Jackson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-114.
Felon Convicted at Trial for Federal Cocaine Distribution Conspiracy and Illegal Possession of a FirearmRead the Press Release
Greenbelt, Maryland – A federal jury today convicted James Ronnell Davis, a/k/a Twin, Slim and Slick, age 41, of Springfield, Virginia, for a cocaine distribution conspiracy, two counts of possession with intent to distribute cocaine, and for being a felon in possession of a firearm.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Scott Hoernke of the Drug Enforcement Administration, Washington Field Office; Chief Henry P. Stawinski III of the Prince George’s County Police Department; and St. Mary’s County Sheriff Timothy K. Cameron.
According to the evidence presented at Davis’s ten-day trial, from 2009 through at least 2017, Davis conspired with Adrian Carlos Washington, a/k/a AD; Jamila Kibibi Hargrove, a/k/a Ms. Bossy; Lonnell Staton, a/k/a Papi Chulo, and others to distribute hundreds of kilograms of cocaine. Specifically, the evidence showed that Davis ran the drug conspiracy from his solely owned business, Shades, Suds and Sounds LLC (SS&S), initially located in Temple Hills, Maryland, which relocated to Capitol Heights, Maryland. SS&S provided services including car detailing, window tinting services, and audio/alarm installations, among other things, as well as purchasing vehicles from auto auctions for resale.
The evidence showed that during the course of the conspiracy, Davis used SS&S as a front to distribute cocaine, receiving deliveries of kilograms of cocaine at the business from his source of supply, and providing that cocaine to customers at SS&S and elsewhere. Davis and his co-defendants used disposable, prepaid cellular telephones, commonly referred to as “burner phones,” and frequently switched phones in an effort to thwart law enforcement. During the investigation, law enforcement intercepted and monitored telephone calls and text messages to and from phones used by Davis and his co-conspirators.
Search warrants executed at Davis’s business and residence and those of his co-conspirators resulted in the seizure of numerous cellular telephones, over $200,000 in cash, and 40 kilograms of cocaine, as well as packaging material, digital scales, and other drug paraphernalia.
Co-defendants Adrian Carlos Washington, a/k/a AD, age 43, of Oxon Hill, Maryland; Jamila Kibibi Hargrove, a/k/a Ms. Bossy, age 42, of Washington, D.C.; and Lonnell Staton, a/k/a Papi Chulo, age 38, of Washington, D.C., previously pleaded guilty to their roles in the conspiracy. Washington is scheduled to be sentenced on November 29, 2018, at 3:00 p.m.; and Hargrove and Staton are scheduled to be sentenced on January 7, 2019, at 10:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the FBI, the DEA, the Prince George’s County Police Department, and the St. Mary’s County Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Nicolas A. Mitchell and Catherine K. Dick, who are prosecuting the case.
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Federal Jury Convicts Simpsonville Man of Possessing over 500 Grams or More of Methamphetamine with the Intent to Distribute - Faces Life Sentence in Federal PrisonRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Quirino Hernandez, 31; Adam Stone, 28; and Luis Rodriguez, 29, were sentenced in federal court after pleading guilty to participating in a drug conspiracy involving methamphetamine. Hernandez, Stone, and Rodriguez received sentences of 17 years, 13 years, and 5 years in federal prison, respectively. There is no parole in the federal system.
Andy Moorman, Head of the Narcotics Unit at the U.S. Attorney’s Office, told the Court during the sentencing hearings that Hernandez, located in Gainesville, Georgia, was the source of supply for kilograms of methamphetamine. Hernandez, with the help of Rodriguez, a runner, would meet drug dealers from Anderson, South Carolina, at a carwash in Gainesville, Georgia. While at the carwash, Hernandez would sell kilograms of methamphetamine to these drug dealers for tens of thousands of dollars, and they would return to the Upstate of South Carolina to sell the methamphetamine to their customers.
According to Moorman, Adam Stone was a courier for another leader in the organization, Joshua Peace. Peace sent Stone to the Atlanta, Georgia, area on multiple occasions to buy kilograms of methamphetamine at his request. After buying the methamphetamine, Stone would bring it to Peace in South Carolina, where Peace and other members of the organization would sell it locally.
Peace, Hernandez, Stone, Rodriguez, and others in this drug trafficking organization were responsible for the distribution of over $1 million worth of methamphetamine in the Upstate of South Carolina and elsewhere. During the course of the investigation and prosecution, federal agents and local law enforcement seized over $600,000 in U.S. Currency, seven automobiles, and other property that conspirators bought with drug proceeds.
The Drug Enforcement Administration, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, the Anderson County Sheriff’s Office, the Anderson Police Department, and the Franklin County (GA) Sheriff’s Office investigated the case.
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Federal Inmate Charged with Possessing ContrabandRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., was indicted by a federal grand jury in Johnstown on a charge of possession of a prohibited object in prison, United States Attorney Scott W. Brady announced today.
The indictment named David Smeltzer, 37.
According to the indictment presented to the court, on August 5, 2018, Smeltzer possessed a quantity of Buprenorphine.
The law provides for a maximum sentence of 20 years in prison and a fine of $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.
Special Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Smeltzer.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
FCI-Loretto Inmate Charged with Illegally Possessing Controlled SubstanceRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., was indicted by a federal grand jury in Johnstown on a charge of possession of a prohibited object in prison, United States Attorney Scott W. Brady announced today.
The indictment named Samuel Vargas, 32.
According to the indictment presented to the court, on August 21, 2018, Vargas possessed a quantity of Buprenorphine.
The law provides for a maximum sentence of 20 years in prison and a fine of $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.
Special Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Vargas.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Elder Home Caregivers Charged with Defrauding 91-Year-Old Homebound VictimRead the Press Release
TUCSON, Ariz. – On Oct. 31, 2018, a federal grand jury returned a 72-count indictment charging Margaret Arlene Gastelum, 59, of San Manuel, Ariz. and Mona Lisa Rodriguez, 36, of Tucson, Ariz., with an eldercare fraud scheme. The indictment charged both defendants with conspiracy, bank fraud, wire fraud and aggravated identity theft. The arraignment is scheduled for Nov. 16, 2018.
The indictment alleges that Gastelum and Rodriguez provided home care assistance for a 91-year-old victim from 2015 through 2017. The defendants gained access to the victim’s banking information and fraudulently transferred/and or used funds from the victim’s bank accounts. Additionally, the defendants fraudulently used the victim’s credit cards and obtained credit cards without the victim’s full knowledge and consent. The indictment also alleges that the defendants overcharged the victim for the services without the victim’s knowledge. As a result of the defendants’ scheme to defraud, the victim suffered a loss of approximately $184,000.
A conviction for the charged conspiracy carries a maximum penalty of five years in prison, a $250,000 fine, or both. A conviction for bank fraud carries a maximum penalty of thirty years in prison, a $1,000,000 fine, or both. A conviction for wire fraud carries a maximum penalty of 20 years in prison, a $250,000 fine or both. A conviction for aggravated identity theft carries a minimum mandatory sentence of two years in prison that must be served consecutively to the ultimate sentence imposed relating to the other charges in this case.
An indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The investigation in this case was conducted by the United States Secret Service and the Tucson Police Department. The prosecution was handled by Assistant U.S. Attorney Wallace Kleindienst for the U.S. Attorney’s Office, District of Arizona, Tucson.
CASE NUMBER: CR-02219-RM-LAB
RELEASE NUMBER: 2018-148_Gastellum et al
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
District Woman Sentenced for Distributing Synthetic MarijuanaRead the Press Release
WASHINGTON – Briana Barnes, 20, of Washington, D.C., has been sentenced to six months of incarceration on a charge stemming from an investigation into the sales of synthetic cannabinoids in Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Barnes pled guilty in August 2018, in the U.S. District Court for the District of Columbia, to a charge of unlawful possession with intent to distribute a controlled substance, a District of Columbia offense. She was sentenced on Nov. 6, 2018 by the Honorable Ketanji Brown Jackson. Following her jail term, she will be placed on two years of supervised release.
According to the government's evidence, on Saturday Dec. 31, 2016, at about 3:30 p.m., members of MPD’s Narcotics Enforcement Unit were observing the 2200 Block of S Street NE, looking for narcotics transactions in the area. An undercover MPD officer, while parked in front of 2210 Adams Place NE, observed a black four-door Mercedes sedan bearing the State of Virginia tags with a male in the driver’s seat and Barnes seated on the passenger side.
The officer observed both people making what appeared to be illegal drug transactions from the driver and passenger-side windows of the vehicle. In addition, the officer witnessed, on several occasions, an unknown amount of currency exchanged between pedestrians and the people in the car; in return, Barnes and the man would hand those persons a black unknown package out of both sides of the vehicle’s windows. The undercover officer broadcast an in-depth lookout for the vehicle and driver to the MPD arrest team and gave a signal for the team to move in and stop the vehicle. At that point, the man fled the scene at a high rate of speed and sped past traffic stop signs or posted speed limits. He and Barnes were subsequently caught in the rear of a building in the 2200 block of Rand Place NE and taken into custody.
Recovered from the vehicle on the rear floorboard, behind the front passenger seat, was a large black garbage bag containing 64 black pouches and a large metric scale. Contained within each black pouch was plant material consistent with a synthetic cannabinoid product. The contents of the pouches collectively totaled approximately 2,949.5 grams of a synthetic cannabinoid, FUB-AMB, also commonly called synthetic marijuana.
In her plea, Barnes admitted that she voluntarily and purposely possessed the controlled substance and did so with the intent to distribute the controlled substance to others. The case against the man remains pending in the U.S. District Court.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They expressed appreciation for the efforts of those who worked in the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz and Teesha Tobias and Legal Intern Nikeesha D. Nath. Finally, they commended the work of Assistant U.S. Attorney Emory V. Cole, who prosecuted the case.
District Man Pleads Guilty to Federal Gun and Drug Charges After Being Observed Engaging in Sale of NarcoticsRead the Press Release
WASHINGTON – Austin Boykins, 35, of Washington, D.C., pled guilty today to possessing a firearm in furtherance of a drug trafficking offense, after law enforcement discovered a loaded firearm and packaged narcotics in his vehicle following a street sale of drugs during an undercover operation, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Boykins pled guilty before the Honorable Ellen S. Huvelle in the U.S. District Court for the District of Columbia. He faces a mandatory minimum sentence of five years of incarceration and up to life imprisonment. Judge Huvelle scheduled sentencing for Jan. 23, 2019.
According to the government’s evidence, on July 10, 2018, members of MPD’s Narcotics and Special Investigations Unit were conducting undercover operations in the 1200 to 1300 block of Rock Creek Ford Road NW. During the operation, a plainclothes undercover officer observed Boykins engage in a hand-to-hand drug transaction. Arrest teams moved in and obtained crack cocaine from the purchaser and stopped Boykins, who had $587.48 in cash on his person and a key to a Porsche that was only a few feet away from him. After obtaining a search warrant for the vehicle, law enforcement recovered the defendant’s wallet, which had two photo identifications from two separate jurisdictions, 14 grams of crack cocaine, and a loaded firearm. The firearm was subsequently found to contain his DNA.
Boykins has prior convictions in the Superior Court of the District of Columbia for firearms and narcotics offenses.
In announcing the plea, U.S. Attorney Liu and Chief Newsham, commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Christopher Macchiaroli, Paralegal Specialist Candace Battle, and Legal Assistant Aiesha Bynum.
Deputy Attorney General Names U.S. Attorney Williams Chair of National Marijuana Working GroupRead the Press Release
WASHINGTON—Deputy Attorney General Rod J. Rosenstein today named Billy J. Williams, U.S. Attorney for the District of Oregon, chair of the Attorney General’s Marijuana Working Group. The working group is part of the Attorney General Advisory Committee’s (AGAC) Controlled Substances Subcommittee.
“I am honored to be named chair of the Marijuana Working Group and look forward to working with Attorney General Sessions, Deputy Attorney General Rosenstein and my fellow U.S. Attorneys on this important policy area,” said U.S. Attorney Williams. “From our statewide summit in February to the release of our district enforcement strategy this summer, we’ve learned a lot from stakeholders representing many diverse interests. There is one thing everyone agrees on: a broad need for stronger regulation. This working group provides a valuable forum for sharing ideas and learning from the experiences of others in an effort to develop innovative, multi-district enforcement strategies to address the many impacts of a nascent industry.”
The AGAC was created in 1973 and reports to the Attorney General through the Deputy Attorney General. The AGAC represents the nation’s U.S. Attorneys and provides advice and counsel to the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys.
Corpus Man Sent to Prison for Dealing Drugs, Possessing FirearmRead the Press Release
CORPUS CHRISTI, Texas – A 39-year-old Corpus Christi resident has been ordered to federal prison following his conviction of possessing with intent to distribute methamphetamine and illegally possessing a firearm and ammunition, announced U.S. Attorney Ryan K. Patrick. A federal jury convicted Juan Dedios Delagarza Aug. 14, 2018, following two days of trial and less than two hours of deliberation.
Today, U.S. District Judge Nelva Gonzales Ramos, who presided over the trial, handed Delagarza a 96-month sentence to be immediately followed by three years of supervised release.
During trial, jurors heard testimony that authorities executed a search warrant in the early morning hours of Sept. 28, 2013, at Delagarza’s Corpus Christi residence. He was there along with his five juvenile children and their mothers, among others.
Officers searched the residence and found more than 10 grams of methamphetamine, as well as numerous drug ledgers, scales, baggies, pipes and other drug paraphernalia. Also found was a loaded, stolen firearm and other ammunition. Officers and agents provided testimony about Delagarza’s prior felony conviction, the origin of the firearm and ammunition and the analysis of the narcotics recovered.
The jury also heard that Delagarza had previously admitted he knew of the methamphetamine.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas Department of Public Safety; Nueces County Sheriff’s Office; and Corpus Christi Police Department all assisted in the joint investigation. Assistant U.S. Attorney Michael Hess is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.