Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 27 September 2018
Massachusetts Contractor Charged with Payroll Tax CrimesRead the Press Release
BOSTON – An Ipswich man, who is the owner and operator of numerous Massachusetts businesses, was arrested today on charges that he manipulated his payroll to avoid paying taxes.
George Vasiliades, 54, was charged in an indictment unsealed today with 17 counts of failure to collect, account for and pay over federal employment taxes; 17 counts of aiding and assisting the filing of false tax returns; one count of making a false statement to the Social Security Administration; and one count of aggravated identity theft. Vasiliades was arrested this morning and will appear before U.S. Magistrate Judge Marianne Bowler this afternoon.
The indictment alleges that Vasiliades’s operated several businesses: Alpine Property Services, Boston Central Management, Delta Labor Company, Olympic Painting and Roofing, and Turnpike General Contracting. Between 2008 and 2013, Vasiliades allegedly concealed the true size of his companies’ payroll from the Internal Revenue Service (IRS) to reduce the cost of doing business and to increase profits. Among other things, Vasiliades characterized a portion of an employee’s wages as nontaxable and false expense reimbursements; and directed certain employees to create shell corporations and then paid employees through these corporations as if they were independent contractors. He also allegedly paid some employees, including those who were not U.S. citizens and not authorized to work in the United States, from bank accounts that were not connected to his corporate payroll reporting software and, as a result, would not be reported as wages to the IRS.
From April 2013 through September 2013, Vasiliades allegedly paid approximately $23,553 in wages to an employee who was not a citizen and not authorized to work in the United States using the name and Social Security number of a U.S. citizen employee. Each week during that period, Vasiliades allegedly issued two payroll checks in the citizen’s name and Social Security number: one check for the wages of the citizen and one check for the wages of the unauthorized worker. Vasiliades then allegedly reported all of the wages paid in the citizen’s name to the Social Security Administration, as if the citizen had earned them, which was false.
The charges of failure to collect, account for and pay over federal employment taxes and making a false statement to the Social Security Administration provide for a sentence of no greater than five years in prison and three years of supervised release. The charges of aiding and assisting the filing of false tax returns provide for a sentence of no greater than three years in prison and one year of supervised release. The aggravated identity theft charge carries a mandatory two-year prison term which must be served consecutively to any sentence imposed on the other counts. Each count also is punishable by a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties.
United States Attorney Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; and Michael C. Mikulka, Special Agent in Charge of the New York Region of the U.S. Department of Labor’s Office of Inspector General, Office of Criminal Investigations – Labor Racketeering and Fraud, made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Man Sentenced to 10 Years for 2016 Encinitas Arson SpreeRead the Press Release
Assistant U. S. Attorney Shital Thakkar (619) 546-8785 and Shane Harrigan (619) 546-6981
NEWS RELEASE SUMMARY – September 27, 2018
SAN DIEGO – Tyler Carender was sentenced in federal court today to 10 years in prison for damaging and destroying buildings at St. Andrew’s Episcopal Church and Oak Crest Middle School in Encinitas on three separate occasions in the fall of 2016, by means of fire and an explosive device.
Carender was arrested in July 2017 at his home on Island View Lane in Encinitas, which is adjacent to Oak Crest Middle School and about 400 yards from the church. He pleaded guilty on March 9, 2018 to all three arson-related charges in the indictment.
In his plea agreement, Carender admitted that he began his 21-day arson spree on Saturday, October 22, 2016, when he set fire to the “Friendship House” Counseling and Youth Center building at the Saint Andrew’s Episcopal Church complex on Balour Drive in Encinitas. The rapid response of the Encinitas Fire Department prevented the fire from spreading to other church buildings and nearby residences. However, the Youth Center was destroyed, resulting in an estimated monetary loss of at least $200,000. St. Andrew’s uses the Youth Center building to house its youth group functions and to provide food, meals and shelter to the needy in the community.
Carender also admitted that a week later, on Saturday, October 29, he set fire to the Administrative Building at the Oak Street Middle School by breaking into the building and using gasoline to set fire to books and files within the building. Encinitas firefighters who arrived at the scene initially entered the building to fight the fire. However, due to the extent and intensity of the fire and the possible collapse of the roof, they were forced to retreat from the building and battle the blaze from the exterior. Carender admitted that his criminal conduct created substantial risk of injury to firefighters responding to the blaze. The damage caused by Carender’s arson not only rendered the administrative hub of the school unusable, but destroyed student records and displaced staff -- significantly disrupting the daily functions and operations of the school. The estimated monetary loss to the San Dieguito Union High School District is at least $1.5 million.
Carender also admitted that two weeks later he returned to the St. Andrew’s campus, and threw a Molotov Cocktail into the office of the church’s Preschool Building, causing another fire. The resulting damage to the building is estimated to be at least $25,000. The Preschool services approximately 80 students, and includes non-members of the parish.
According to court filings, San Diego Sheriff’s detectives received an anonymous tip from Crime Stoppers, which identified Carender as the arsonist. Thereafter, Carender confided in a classmate about committing the three arsons, and that classmate informed investigators and provided a recording of a conversation with the defendant admitted his involvement in setting the fires. After the Carender was arrested, he initially lied to agents, claiming innocence. However, after being confronted with evidence, he admitted starting all three fires.
At today’s hearing, the Reverend Brenda Sol, rector at St. Andrews Episcopal Church, addressed Carender and the Court stating that Carender’s actions cost the church a lot more than just money and time – it affected the lives of their church community and nearby neighbors in other more damaging ways. Members of the church and local residents experienced great emotional distress. The fires caused them to fear for their safety, placing them on constant alert. Families also pulled their children out of the Preschool, fearing further attacks. The fires also caused the church to divert resources from programs to feed the hungry in order to buy a security system. However, Rev. Sol expressed that although the church congregation is sad, they are not angry with Carender. In addressing Carender directly, Rev. Sol stated,
“We pray that you understand the depth and breadth of the lives you touched in such horrible and negative ways, so that you understand you can touch just as many lives doing helpful and beneficial things . . . We want you to know that when you committed these crimes on our property, you became one of us, so you will always have a home at St. Andrew’s.”
In imposing the ten year sentence, Judge Janis L. Sammartino noted that Carender’s crimes were “horrific” and the damage from his arson spree went “far and wide – far beyond property damage.” The Court deferred the determination of court ordered restitution until December 7, 2018, but is estimated that the restitution will exceed $1.5 million.
“It is very clear that all of the victims are still recovering from the emotional, psychological and physical damage caused by the defendant,” said U.S. Attorney Adam Braverman. “While the victims have graciously offered forgiveness, this sentence is an appropriate outcome for serious crimes that put people and property at great risk.”
“Arson is an act we take very seriously,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Los Angeles Field Division Special Agent in Charge Bill McMullan. “ATF uses its certified fire investigators to build these complex cases when arsonists commit these violent crimes. Damaging and attempting to destroy our community schools and places of worship will not be tolerated.”
DEFENDANT Case Number 17cr1588
Tyler Carender Age: 22 Encinitas, CA
SUMMARY OF CHARGES
Counts 1 and 3:
Malicious Damage to Buildings or Real Property Affecting Interstate Commerce by Means of Fire or an Explosive, in violation of Title 18, United States Code, Section 844 (i)
Count 2:
Malicious Damage to Buildings and Real Property Receiving Federal Financial Assistance by Means of Fire or an Explosive, in violation of Title 18, United States Code, Sec. 844(f )(1) and (f )(2)
AGENCY
U.S. Bureau of Alcohol, Tobacco Firearms and Explosives
San Diego County Sheriff’s Department
Lumpkin Resident Pleads Guilty to at Least 15 Years in Federal Prison Without Parole Just Before Trial Is Set to BeginRead the Press Release
COLUMBUS: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Marcus Crocker, age 44, of Lumpkin, Georgia, pled guilty on September 27, 2018 to Possession of Cocaine Base with Intent to Distribute and Possession of a Firearm in Furtherance of a Drug Trafficking Crime before Chief U.S. District Court Judge Clay D. Land in Columbus, Georgia. A trial in the case was set to begin today.
In entering his plea, Mr. Crocker admitted that officers with the Taylor County Sheriff’s Office, assisted by members of the Lumpkin and Richland Police Departments, used a confidential reliable source to make two recorded, controlled purchases of cocaine base, aka crack cocaine, from him at his residence in Lumpkin on March 2, 2017 and March 3, 2017. At the time, Mr. Crocker was on probation for a previous drug offense. A subsequent search of Mr. Crocker’s home produced three firearms, ammunition, crack cocaine, powder cocaine, marijuana, and various items commonly associated with drug trafficking, such as baggies, vials, scales, and cash.
Mr. Crocker was prohibited from possessing a firearm due to seven prior felony convictions for various offenses.
On the narcotics charge, Mr. Crocker faces a mandatory minimum sentence of ten (10) years’ imprisonment, up to a maximum sentence of Life in Prison, and a maximum $8 million fine. On the firearms charge, Mr. Crocker faces a mandatory minimum five (5) years’ imprisonment, to be served consecutively, up to Life in Prison, and a maximum $250,000 fine.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was investigated by the Taylor County Sheriff’s Office, Lumpkin Police Department, Richland Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Crawford Seals is prosecuting the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Luling Man Sentenced to 27 Months for ViolatingRead the Press Release
NEW ORLEANS, LOUISIANA – United States District Judge Susie Morgan sentenced JONATHAN WHIPPLE, age 33, a resident of Luling, to 27 months in the Bureau of Prisons for being a felon in possession of a firearm, in violation of the Federal Gun Control Act announced U.S. Attorney Peter G. Strasser.
WHIPPLE was indicted by a Federal Grand Jury on November 3, 2017 in a one count indictment for possessing a Smith & Wesson, Model 22LR semi-automatic rifle after having been convicted of two different felony drug offenses. WHIPPLE will serve 27 months in prison to be followed by 3 years of supervised release.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U. S. Attorney Peter G. Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution was being handled by Assistant United States Attorney David Haller.
* * *
Last defendant in a series of inmate escape cases sentenced to additional prison timeRead the Press Release
ATLANTA – Jaye L. Thomas, an inmate at the U.S. Penitentiary in Atlanta (USP Atlanta), has been sentenced to additional prison time for escaping on three separate occasions. Thomas is the last defendant to be sentenced in an operation aimed at combating the rash of inmate escapes from the prison camp in 2016 and 2017.
“Prisoners who escape from custody pose a threat to the community and subvert the authority of the criminal justice system,” said U.S. Attorney Byung J. “BJay” Pak. “These prosecutions make it clear that serious consequences exist for inmates who escape from custody, especially for those who are caught smuggling illegal contraband.”
“This sentencing hopefully marks the end of an investigation that exposed a serious breach of security and safety, both inside and outside of a federal prison,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The safety of our communities was breached when these inmates escaped, and the security of the prison was breached when they returned with contraband that allowed them to continue criminal conduct inside the prisons walls. This type of carefree behavior will not go unpunished.”
“This operation highlights the team effort that exists among our agencies,” said Atlanta Police Chief Erika Shields. “Together, we made sure these prisoners continue to pay their debt to society for previous crimes and face the serious consequences for escaping custody and putting the community at risk.”
According to U.S. Attorney Pak, the charges, and other information presented in court: USP Atlanta is a medium-security federal prison for male inmates operated by the Federal Bureau of Prisons. USP Atlanta also operates a satellite prison camp for minimum-security male inmates.
Since 2016, the Federal Bureau of Investigation and the Atlanta Police Department have jointly investigated instances of USP Atlanta inmates temporarily escaping from the prison camp to obtain contraband to smuggle back into the prison or to visit nearby restaurants, hotels, and residences.
In January 2015, Thomas was sentenced to 11 years, three months in prison after being convicted of possession with the intent to distribute cocaine. In 2016, Thomas was assigned to the USP Atlanta’s prison camp.
Law enforcement officers began investigating Thomas when surveillance images showed him escaping from USP Atlanta on March 22, 2016 and April 4, 2016. Eyewitness testimony, cellular telephone records, and other evidence confirmed that Thomas had escaped from USP Atlanta’s prison camp on three occasions to have sex with two different girlfriends.
Jaye L. Thomas, 37, of Dalton, Georgia, was sentenced to an additional one year, nine months in prison, to be served following his current 11 year, three month prison term.
In addition to Thomas, the following individuals were convicted and sentenced for their involvement in inmate escapes from the USP Atlanta prison camp:
●On June 6, 2017, federal inmate Justin B. Stinson, 37, of Panama City, Florida, was sentenced to an additional one year, three months in prison (to be served after his current four year, three month prison term). Stinson pleaded guilty to escaping from federal custody after he was caught outside of USP Atlanta with a duffel bag containing a cellular telephone, scissors, tequila, and cigarettes.
●On September 20, 2017, federal inmate Fernando A. Settles, 37, of Augusta, Georgia, was sentenced to an additional one year, three months in prison (to be served after his current 20-year prison term). Settles pleaded guilty to escaping from prison so that he could celebrate his birthday.
●On February 22, 2018, federal inmate Deldrick D. Jackson, 42, of Atlanta, Georgia, was sentenced to an additional one year, six months in prison (to be served after his current 10 year, eight month prison term). Jackson’s fiancée, Kelly M. Bass, 39, of Stone Mountain, Georgia, was sentenced on September 13, 2017, to six months in prison to be followed by eight months of home confinement. Jackson and Bass were sentenced for running an inmate taxi service. In total, they provided escaped inmates with transportation from USP Atlanta and/or smuggled contraband into the prison on approximately 15 occasions. On the day of their arrests, Jackson and Bass were caught with two cell phones, 83 packs of cigarettes, and eight bottles of whiskey.
●On June 1, 2018, federal inmate Latigree D. James, 36, of Miami, Florida, was sentenced to an additional six months in prison (to be served after his current five-year prison term). James escaped from the prison camp to meet with Claudia Moline, who drove him from USP Atlanta and provided him with cellular phones and approximately $200’s worth of cigarettes. For her role, Moline, 36, of Hiram, Georgia, was sentenced on April 20, 2018, to three years of probation.
The Federal Bureau of Investigation and the Atlanta Police Department investigated these cases.
Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section; and Assistant U.S. Attorney Timothy H. Lee prosecuted the cases.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
KC Man Sentenced for Bank RobberyRead the Press Release
KANSAS CITY, Mo. – A Drexel, Mo., man was sentenced in federal court today for robbing the U.S. Bank inside Truman Medical Center.
Jimmy Lee Bozeman II, 57, was sentenced by U.S. District Judge Howard F. Sachs to 12 years and seven months in federal prison without parole.
On June 6, 2018, Bozeman pleaded guilty to one count of bank robbery. Bozeman stole $1,450 from U.S. Bank on March 14, 2018.
According to court documents, Bozeman demanded a bank teller give him all of her $50 and $100 bills. The teller briefly hesitated because she thought he was joking; he told her it was not a joke and he possessed a handgun. After the teller handed him money from her top drawer, he demanded the money from the second drawer. As she was attempting to open the second drawer, a hospital cafeteria employee approached the bank to make change for the register in the cafeteria. When Bozeman turned to look at him, the teller activated the hold-up alarm. Bozeman then fled from the hospital, got into a vehicle parked nearby and left the area.
Bank surveillance photos were released to the media. Several social workers at Truman Medical Center recognized Bozeman as a former client. Bozeman’s ex-wife also identified him from the surveillance photos.
Bozeman was previously convicted of bank robbery in the Western District of Missouri in 2009. He also has prior felony convictions for robbery and armed criminal action.
This case was prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Justice Department Reaches Settlement with Northwest Trustee Services, Inc. of Bellevue, Washington for Illegally Foreclosing on Servicemembers’ HomesRead the Press Release
The U.S. Department of Justice and a Bellevue, Washington foreclosure services company today settled allegations that Northwest Trustee Services, Inc. (“Northwest”) violated the Servicemembers Civil Relief Act (“SCRA”), announced U.S. Attorney Annette L. Hayes. The complaint filed in November 2017, alleged that Northwest completed foreclosures on homes owned by servicemembers without obtaining the required court orders. Under the terms of the settlement, servicemembers who had their homes illegally foreclosed on may receive compensation for the unlawful foreclosures of up to $125,000, with a total payout to servicemembers of up to $750,000. Northwest ceased operations in December 2017 and is now being liquidated in state court receivership proceedings. This is the Department’s first SCRA lawsuit against a foreclosure trustee company.
The SCRA protects the rights of servicemembers on active duty by suspending or modifying certain civil obligations. The law prohibits foreclosing on the home of a servicemember during active military service and one year thereafter without a court order if the mortgage originated prior to the servicemember’s period of active military service.
“The Civil Rights Division will never waver in our commitment to vindicating the rights of those who devote themselves to the service of our country,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We hope this case sends a strong message to foreclosure trustee companies and others that all foreclosures must comply with the Servicemembers Civil Relief Act.”
“Those who serve in our military deserve zealous representation of their rights,” said U.S. Attorney Annette L. Hayes. “We are working to ensure that servicemembers whose homes were illegally foreclosed on by Northwest Trustee receive up to $125,000 in compensation. Northwest Trustee may have shuttered its foreclosure business, but that does not end its obligation to do right by servicemembers.”
The Department of Justice launched an investigation into Northwest’s practices after United States Marine Corps veteran Jacob McGreevey of Vancouver, Washington submitted a complaint to the Department’s Servicemembers and Veterans Initiative in May 2016. Northwest had foreclosed on McGreevey’s home in August 2010, less than two months after he was released from active duty in Operation Iraqi Freedom. McGreevey sued both PHH Mortgage (his mortgage servicer) and Northwest in 2016, but a U.S. District Court Judge accepted PHH and Northwest’s argument that McGreevy had waited too long to file his case, and dismissed the case on that basis. The Department’s investigation revealed that, in addition to McGreevey, Northwest had unlawfully foreclosed on other homes of SCRA-protected servicemembers since 2010.
Before entering into receivership, Northwest described itself as a full-service trustee company providing foreclosure services to mortgage lenders in the Western United States. On March 28, Northwest was placed into a General Receivership under Washington State law. The company no longer provides foreclosure services. If it were to reenter the business of providing foreclosure services, the settlement requires the company to implement Department-approved policies, procedures, and training to prevent further SCRA violations.
This case was jointly handled by Assistant U.S. Attorneys Christina Fogg and Kyle Forsyth of the United States Attorney’s Office for the Western District of Washington and Trial Attorneys Alan Martinson and Nicole Siegel of the Civil Rights Division for the U.S. Department of Justice.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section, often in partnership with local United States Attorney’s Offices. Since 2011, the Department has obtained over $467 million in monetary relief for servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Justice Department Reaches Settlement with Northwest Trustee Services of Bellevue, Washington, for Illegally Foreclosing on Servicemembers’ HomesRead the Press Release
The Department of Justice today announced a settlement with Northwest Trustee Services Inc. (Northwest) of Bellevue, Washington, to resolve a lawsuit alleging that the foreclosure services company violated the Servicemembers Civil Relief Act (SCRA). The complaint, filed in November 2017, alleges that Northwest foreclosed on homes owned by servicemembers without obtaining the required court orders. Under the terms of the settlement, servicemembers who had their homes illegally foreclosed on may each receive compensation of up to $125,000, with a total payout to servicemembers of up to $750,000. Northwest ceased operations in December 2017 and is now being liquidated in state court receivership proceedings. This is the Department’s first SCRA lawsuit against a foreclosure trustee company.
The SCRA protects the rights of servicemembers in military service by suspending or modifying certain civil obligations. The law prohibits foreclosing on the home of a servicemember during military service and one year thereafter without a court order if the mortgage originated prior to the servicemember’s period of military service.
“The Civil Rights Division will never waver in our commitment to vindicating the rights of those who devote themselves to the service of our country,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We hope this case sends a strong message to foreclosure trustee companies and others that all foreclosures must comply with the Servicemembers Civil Relief Act.”
“Those who serve in our military deserve zealous representation of their rights,” said U.S. Attorney Annette L. Hayes. “We are working to ensure that servicemembers whose homes were illegally foreclosed on by Northwest Trustee receive up to $125,000 in compensation. Northwest Trustee may have shuttered its foreclosure business, but that does not end its obligation to do right by servicemembers.”
The Department of Justice launched an investigation into Northwest’s practices after United States Marine Corps veteran Jacob McGreevey of Vancouver, Washington submitted a complaint to the Department’s Servicemembers and Veterans Initiative in May 2016. Northwest had foreclosed on Mr. McGreevey’s home in August 2010, less than two months after he was released from active duty in Operation Iraqi Freedom. McGreevey sued both PHH Mortgage (his mortgage servicer) and Northwest in 2016, but a U.S. District Court Judge accepted PHH and Northwest’s argument that McGreevy had waited too long to file his complaint and dismissed the case. The Department’s investigation revealed that, in addition to McGreevey, Northwest had unlawfully foreclosed on other SCRA-protected servicemembers since 2010.
Before entering into receivership, Northwest described itself as a full-service trustee company providing foreclosure services to mortgage lenders in the Western United States. On March 28, Northwest was placed into a General Receivership under Washington State law. The company no longer provides foreclosure services. If it were to reenter the business of providing foreclosure services, the settlement requires the company to implement Department-approved policies, procedures, and training to prevent further SCRA violations.
This case was jointly handled by the Civil Rights Division of the Department of Justice and the United States Attorney’s Office for the Western District of Washington.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section, often in partnership with local United States Attorney’s Offices. Since 2011, the Department has obtained over $468 million in monetary relief for servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Justice Department Reaches Settlement with New Jersey Military Housing Provider for Charging Unlawful Lease Termination Fees to U.S. ServicemembersRead the Press Release
The Justice Department today announced that United Communities, LLC, a private company that manages military housing at Joint Base McGuire-Dix-Lakehurst (JB-MDL), has agreed to pay $62,501.78 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by imposing early termination charges on 13 servicemembers who had exercised their right to terminate their residential leases upon receipt of qualifying military orders. The early termination charges ranged from $138 to $3,100. This case and the settlement with another company in United States v. Twin Creek, announced on Sept. 11, are the first two SCRA cases the Department has brought involving lease incentives.
The Department launched an investigation into United Communities’ leasing practices after receiving a referral from Air Force Community Legal Services. Army Captain Gregory Funk had sought to terminate his lease with United Communities after he received military orders to deploy to Qatar for up to 365 days as a part of Operation Inherent Resolve. United Communities agreed to release Captain Funk from the remainder of his lease term, but required him to pay back the $899.20 lease incentive that he had received when he signed the lease because he had not completed the 24-month term of the lease. The investigation revealed 12 other instances where SCRA-protected servicemembers were required to pay back their lease incentives.
Under the terms of the settlement, United Communities must pay a total of $45,001.78 in damages to 13 servicemembers. United Communities will also pay a civil penalty of $17,500 to the United States. In addition, United Communities must develop policies to ensure it complies with the SCRA, train its employees on the protections afforded by the SCRA, and report future SCRA-related complaints to the government.
“Members of the Army, Navy, and Air Force at Joint Base McGuire-Dix-Lakehurst, and servicemembers nationwide, have the right to terminate their leases without penalty when their military orders send them elsewhere,” said Acting Assistant Attorney General John Gore. “We appreciate United Communities’ cooperation with the Department to compensate affected servicemembers. We are resolute in our commitment to vigorously enforce the SCRA on behalf of our men and women in uniform.”
“When the brave men and women of our armed services answer the call of duty, they should be confident that they and their families will receive every protection the SCRA offers,” said U.S. Attorney Craig Carpenito. “With this settlement agreement, I am proud to continue our robust enforcement of the SCRA in New Jersey.”
The SCRA extends various protections to servicemembers to allow them to devote their entire energy to the national defense. The SCRA provides protections for servicemembers in areas such as evictions, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. The SCRA also allows servicemembers to terminate their residential leases after entering military service or receiving military orders for a permanent change of station, deployment, or retirement. Landlords are prohibited from imposing an early termination charge on servicemembers who terminate their leases under the SCRA.
The agreement resolves a suit filed by the United States in the United States District Court for the District of New Jersey.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the Department has obtained over $468 million in monetary relief for servicemembers through its enforcement of the SCRA. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Individuals who believe their civil rights have been violated in the District of New Jersey may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
Justice Department Reaches Settlement with New Jersey Military Housing Provider for Charging Unlawful Lease Termination Fees to U.S. ServicemembersRead the Press Release
NEWARK, N.J. – The Justice Department today announced that United Communities, LLC, a private company that manages military housing at Joint Base McGuire-Dix-Lakehurst (JB-MDL), has agreed to pay $62,501.78 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by imposing early termination charges on 13 servicemembers who had exercised their right to terminate their residential leases upon receipt of qualifying military orders. The early termination charges ranged from $138 to $3,100. This case and the settlement with another company in United States v. Twin Creek, announced on Sept. 11, 2018, are the first two SCRA cases the Department has brought involving lease incentives.
The Department launched an investigation into United Communities’ leasing practices after receiving a referral from Air Force Community Legal Services. U.S. Army Capt. Gregory Funk had sought to terminate his lease with United Communities after he received military orders to deploy to Qatar for up to 365 days as a part of Operation Inherent Resolve. United Communities agreed to release Captain Funk from the remainder of his lease term, but required him to pay back the $899.20 lease incentive that he had received when he signed the lease because he had not completed the 24-month term of the lease. The investigation revealed 12 other instances where SCRA-protected servicemembers were required to pay back their lease incentives.
Under the terms of the settlement, United Communities must pay a total of $45,001.78 in damages to 13 servicemembers. United Communities will also pay a civil penalty of $17,500 to the United States. In addition, United Communities must develop policies to ensure it complies with the SCRA, train its employees on the protections afforded by the SCRA, and report future SCRA-related complaints to the government.
“Members of the Army, Navy, and Air Force at Joint Base McGuire-Dix-Lakehurst, and servicemembers nationwide, have the right to terminate their leases without penalty when their military orders send them elsewhere,” Acting Assistant Attorney General John Gore said. “We appreciate United Communities’ cooperation with the Department to compensate affected servicemembers. We are resolute in our commitment to vigorously enforce the SCRA on behalf of our men and women in uniform.”
“When the brave men and women of our armed services answer the call of duty, they should be confident that they and their families will receive every protection the SCRA offers,” U.S. Attorney Craig Carpenito said. “With this settlement agreement, I am proud to continue our robust enforcement of the SCRA in New Jersey.”
The SCRA extends various protections to servicemembers to allow them to devote their entire energy to the national defense. The SCRA provides protections for servicemembers in areas such as evictions, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. The SCRA also allows servicemembers to terminate their residential leases after entering military service or receiving military orders for a permanent change of station, deployment, or retirement. Landlords are prohibited from imposing an early termination charge on servicemembers who terminate their leases under the SCRA.
The agreement resolves a suit filed by the United States in the United States District Court for the District of New Jersey.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the Department has obtained over $468 million in monetary relief for servicemembers through its enforcement of the SCRA. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Individuals who believe their civil rights have been violated in the District of New Jersey may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Unit, Civil Division; Assistant U.S. Attorney David V. Simunovich, Civil Division; and Trial Attorney Alan Martinson, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.
Justice Department Files Sexual Harassment Lawsuit Against Owners of Oklahoma City Rental PropertiesRead the Press Release
The Justice Department today announced that it has filed a lawsuit alleging that female tenants and applicants in residential rental properties in or around Oklahoma City were subjected to sexual harassment, coercion, intimidation, and threats in violation of the federal Fair Housing Act. The complaint names four defendants: the Executor of the Estate of Walter Ray Pelfrey; Rosemarie Pelfrey, as Trustee of the W. Ray Pelfrey Revocable Trust and the Rosemarie Pelfrey Revocable Trust; Omega Enterprises, LLC; and Pelfrey Investment Company, LLC.
Today’s lawsuit, filed in the U.S. District Court for the Western District of Oklahoma, alleges that Walter Ray Pelfrey sexually harassed female tenants and applicants of rental properties from at least 2001 through 2017. According to the complaint, he engaged in harassment that included, among other things, making unwelcome sexual advances and comments, engaging in unwanted sexual touching, demanding or pressuring female applicants to engage in sexual acts to obtain rental housing, offering to reduce rent and overlooking or excusing late or unpaid rent in exchange for sex, evicting or threatening to evict female tenants who objected to or refused sexual advances, and entering the homes of female tenants without their consent. The lawsuit further alleges that, upon the death of Walter Ray Pelfrey on July 15, the Estate of Walter Ray Pelfrey assumed liability for discriminatory housing practices. In addition, the lawsuit alleges that Rosemarie Pelfrey in her role as trustee, Omega Enterprises, LLC, and Pelfrey Investment Company, LLC are liable under the Fair Housing Act because Walter Ray Pelfrey managed the rental properties on their behalf when he engaged in the harassment, coercion, intimidation, and threats.
“Female tenants should not be subjected to illegal harassment and demands for sex,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue to enforce the Fair Housing Act against landlords who engage in this misconduct and cause women to feel unsafe in their own homes.”
“Tenants have the right to be free from unwanted sexual harassment and intimidation by their landlord under the federal Fair Housing Act,” said Robert J. Troester of the U.S. Attorney’s Office for the Western District of Oklahoma. “Today’s civil complaint represents a significant step toward achieving justice and compensation for vulnerable victims of civil rights violations.”
In October 2017, the Justice Department launched an initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: a new joint Task Force with the Department of Housing and Urban Development to combat sexual harassment in housing, an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, and a public awareness campaign, including the launch of a national Public Service Announcement.
Since launching the initiative, the Justice Department has filed six lawsuits alleging a pattern or practice of sexual harassment in housing – more than it has filed in any previous fiscal year. The Justice Department has filed or settled 11 sexual harassment cases since January 2017, and has recovered over $1.6 million for victims of sexual harassment in housing.
Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties and a court order barring future discrimination. The complaint contains allegations of unlawful conduct. The allegations must be proven in federal court.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings previously owned or operated by Walter Pelfrey, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line:
- English language: Call 1-800-896-7743, then press 1 to continue in English and select mailbox 991 to leave a message; or
- Spanish language: Call 1-800-896-7743, then press 2 to continue in Spanish and select mailbox 9 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at [email protected].
Justice Department Files Sexual Harassment Lawsuit Against Owners of Oklahoma City Rental PropertiesRead the Press Release
OKLAHOMA CITY – The Justice Department today announced that it has filed a lawsuit alleging that female tenants and applicants in residential rental properties in or around Oklahoma City were subjected to sexual harassment, coercion, intimidation, and threats in violation of the federal Fair Housing Act. The complaint names four defendants: the Executor of the Estate of Walter Ray Pelfrey; Rosemarie Pelfrey, as Trustee of the W. Ray Pelfrey Revocable Trust and the Rosemarie Pelfrey Revocable Trust; Omega Enterprises, LLC; and Pelfrey Investment Company, LLC.
Today’s lawsuit, filed in the U.S. District Court for the Western District of Oklahoma, alleges that Walter Ray Pelfrey sexually harassed female tenants and applicants of rental properties from at least 2001 through 2017. According to the complaint, he engaged in harassment that included, among other things, making unwelcome sexual advances and comments, engaging in unwanted sexual touching, demanding or pressuring female applicants to engage in sexual acts to obtain rental housing, offering to reduce rent and overlooking or excusing late or unpaid rent in exchange for sex, evicting or threatening to evict female tenants who objected to or refused sexual advances, and entering the homes of female tenants without their consent. The lawsuit further alleges that, upon the death of Walter Ray Pelfrey on July 15, the Estate of Walter Ray Pelfrey assumed liability for discriminatory housing practices. In addition, the lawsuit alleges that Rosemarie Pelfrey in her role as trustee, Omega Enterprises, LLC, and Pelfrey Investment Company, LLC are liable under the Fair Housing Act because Walter Ray Pelfrey managed the rental properties on their behalf when he engaged in the harassment, coercion, intimidation, and threats.
"Female tenants should not be subjected to illegal harassment and demands for sex," said Acting Assistant Attorney General John Gore. "The Justice Department will continue to enforce the Fair Housing Act against landlords who engage in this misconduct and cause women to feel unsafe in their own homes."
"Tenants have the right to be free from unwanted sexual harassment and intimidation by their landlord under the federal Fair Housing Act," said Robert J. Troester of the U.S. Attorney’s Office for the Western District of Oklahoma. "Today’s civil complaint represents a significant step toward achieving justice and compensation for vulnerable victims of civil rights violations."
In October 2017, the Justice Department launched an initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: a new joint Task Force with the Department of Housing and Urban Development to combat sexual harassment in housing, an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, and a public awareness campaign, including the launch of a national Public Service Announcement.
Since launching the initiative, the Justice Department has filed six lawsuits alleging a pattern or practice of sexual harassment in housing – more than it has filed in any previous fiscal year. The Justice Department has filed or settled 11 sexual harassment cases since January 2017, and has recovered over $1.6 million for victims of sexual harassment in housing.
Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties and a court order barring future discrimination. The complaint contains allegations of unlawful conduct. The allegations must be proven in federal court.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings previously owned or operated by Walter Pelfrey, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line:
- English language: Call 1-800-896-7743, then press 1 to continue in English and select mailbox 991 to leave a message; or
- Spanish language: Call 1-800-896-7743, then press 2 to continue in Spanish and select mailbox 9 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at [email protected].
Jury Convicts Federal Inmate Who Filed Bogus Involuntary Bankruptcy Petitions Against Warden, Prison OfficerRead the Press Release
A federal inmate housed within the Communications Management Unit (CMU) at the U.S. Penitentiary in Marion, Illinois has been found guilty of filing fictitious involuntary bankruptcy petitions against federal prison officials. Kurt F. Johnson, 55, was convicted by a jury after a three-day trial in Benton, Illinois. The charges against Johnson were originally brought in a four-count federal indictment returned in July 2018.
The evidence at trial established that, on January 8, 2018, with the assistance of persons outside the prison, Johnson succeeded in filing false involuntary bankruptcy petitions against the prison warden and an officer at the prison. The bogus petitions alleged that each victim was indebted to Johnson in the amount of $20 billion, owing to a judgment Johnson claimed to have obtained from the International Court of Justice (also known as the World Court). As part of the scheme, Johnson purportedly canceled $1 billion of the supposed debt and then filed forms with the Internal Revenue Service showing the canceled debt as unreported income for his victims.
The mere filing of the fictitious claims resulted in both victims receiving solicitation letters from credit counseling services and loan companies based upon their supposed bankruptcy. Once the fraud was discovered, the United States quickly moved to seal the proceedings to prevent further damage to the victims’ reputations.
At trial, the United States presented evidence that Johnson has a history and pattern of harassing judges, court personnel, and Bureau of Prisons employees through the filing of fictitious claims. Johnson eschewed appointed counsel and represented himself at the trial, testifying in his own defense that he genuinely believed the World Court had awarded him a default judgment for $20 billion on account of his placement in the CMU. The jury deliberated for approximately 40 minutes before returning guilty verdicts on all four counts.
Johnson is currently serving out the last decade of a 300-month sentence for an unrelated fraud conviction in the Northern District of California. His underlying crime involved a nationwide debt elimination scheme that raked in over $6 million.
Sentencing is set for January 3, 2019, at 10:00 a.m. at the federal courthouse in Benton. By statute, Johnson could receive as much as 20 additional years in prison, which may be imposed to run consecutively to the time he is already serving.
"I am grateful to U.S. Attorney Weinhoeft and our law enforcement partners who serve on the Southern District of Illinois Bankruptcy Fraud Working Group for their strong commitment to combating fraud and abuse in bankruptcy cases, as evidenced by this prosecution," stated Nancy J. Gargula, U.S. Trustee for Southern and Central Illinois and Indiana (Region 10). The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Indiana, and Peoria, Illinois.
The case was investigated by the Federal Bureau of Investigation, with substantial assistance from the Federal Bureau of Prisons. Assistant United States Attorney Michael J. Quinley is prosecuting the case.
Independence Man Sentenced for KidnappingRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., man was sentenced in federal court today for his role in a kidnapping conspiracy.
Justin D. Watson, 23, was sentenced by U.S. District Judge Howard F. Sachs to eight years in federal prison without parole.
On Nov. 17, 2017, Watson pleaded guilty to one count of conspiracy to commit kidnapping and one count of brandishing a firearm during a crime of violence. Watson admitted that he and his co-conspirators kidnapped a victim identified as “N.J.” in March 2017.
Watson was arrested on March 14, 2017, after being stopped by Kansas City, Mo., police officers while driving the kidnapping victim’s Ford Fusion. Watson admitted that he had also driven the vehicle, with the victim in the front passenger seat and two co-conspirators in the back seat, from Kansas City to Colorado on March 11, 2017.
Watson drove west on I-70 toward Colorado, during which time conspirators used the victim’s credit card to withdraw $1,200 from an ATM in a Kansas truck stop. They also stopped at a sporting goods store in Hays, Kan., and purchased high-end athletic shoes using the victim’s credit card.
During the drive westward, conspirators discussed killing the victim. They stopped the vehicle near Russell, Kan., pulled off in a field and told the victim to get out of the car. While Watson held the gun, a co-conspirator tied the victim up and gagged him. The conspirators returned to the car and drove away, leaving the victim in the field. After the kidnappers left, he was able to remove his bindings and made his way to the Russell Police Department.
The conspirators got a room at a motel. Watson was asked to get some items from the local Walmart, but instead drove back to Kansas City.
According to court documents, when Watson originally arrived at a Kansas City, Mo., residence on the morning of March 11, 2017, there were two victims (a man and a woman) seated in chairs in the living room. Both victims had been tied to a pole in the basement with zip ties, rope and electrical wire for several hours. Duct tape was placed over the female victim’s mouth, and the two victims were punched, slapped, kicked and threatened with death. At one point they were forced into the trunk of a car for several hours, then led back into the house.
The female victim begged to go to the hospital, according to court documents, and two co-conspirators dropped her off at Truman Medical Center later the same day.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the FBI and the Independence, Mo., Police Department.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Peter G. Strasser announced that JOSE ANGEL ESPINOZA-FUENTES, age 42, a native of Honduras, pleaded guilty yesterday to a one-count indictment charging him with illegal entry of a removed alien.
According to the court documents, ESPINOZA-FUENTES was previously removed from the United States on July 22, 2011. He was later found in the Eastern District of Louisiana on July 1, 2018, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
ESPINOZA-FUENTES faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee. U.S. District Judge Martin L.C. Feldman set sentencing for December 19, 2018.
U.S. Attorney Strasser praised the work of Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Hanahan Man Sentenced to Federal Prison for Gun CrimeRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon stated today that Justin Michael Hannah, age 39, of Hanahan, South Carolina, was sentenced in federal court in Charleston, South Carolina, for being a felon in possession of a firearm, a violation of 18 U.S.C. § 922(g). United States District Judge Richard M. Gergel, of Charleston, sentenced Hannah to forty-one months imprisonment, to be followed by three years of supervised release with 24 months of electronic monitoring and home confinement.
Evidence presented at the change of plea hearing established that on August 21, 2017, police officers responding to a 911 call regarding suspicious behavior at a North Charleston gas station, discovered two firearms in a vehicle operated by Hannah. Hannah had prior felony convictions, and North Charleston Police believe that they may have foiled a robbery.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and officers of the North Charleston Police Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001. Assistant United States Attorney Chris Schoen of the Charleston office prosecuted the case.
#####
Hampshire County man admits to failing to report for sentencingRead the Press Release
MARTINSBURG, WEST VIRGINIA – James Albert Slonaker, of Augusta, West Virginia, admitted today to failing to report to serve his federal sentence, United States Attorney Bill Powell announced.
Slonaker, age 49, was sentenced in January 2018 to 46 months incarceration for a firearms charge. He was to self-report to begin serving the sentence on February 21, 2018, but failed to surrender.
Slonaker pled guilty to one count of “Unlawful Possession of Firearms” in September 2017. Slonaker, having previously been convicted in the Circuit Court of Frederick County, Virginia, admitted to having a .22 caliber revolver, a .357 magnum revolver, two .22 caliber rifles, a .30-06 caliber rifle, and a Rossi firearm frame/receiver. The crime occurred in January 2017 in Hampshire County.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The United States Probation Office and the United States Marshal Service investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Great Falls Man Sentenced for Heroin and Methamphetamine DistributionRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that 42-year old Brian Weber of Great Falls was sentenced to 180 months in prison, 10 years of supervised release, and a $100 special assessment. U.S. District Judge Brian M. Morris presided over the hearing.
Brian Weber distributed heroin and methamphetamine in Great Falls for over three years, spanning from 2014 through early 2017. During part of this time, Weber resided at the pre-release center and distributed heroin and methamphetamine around Great Falls, as well as to residents at the center. The FBI investigated Weber and identified numerous individuals in Great Falls who received their narcotics from Weber.
Weber has an extensive criminal history of prior felony violent crimes and a federal drug conviction, including violence against family members, girlfriends and members within his drug network.
The case was prosecuted by Assistant U.S. Attorney Jessica Betley and investigated by the Federal Bureau of Investigation.
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.
“Brian Weber is a dangerous criminal with a substantial criminal history. Because of that, we asked for an enhanced sentence provided by statute to make sure Weber is removed from our communities for a long time,” said U.S. Attorney Kurt Alme. “I want to thank Assistant U.S. Attorney Jessica Betley and the FBI’s Regional Violent Crime Task Force, in western Montana, including officers from Montana Probation and Parole and the sheriff’s offices in Lewis and Clark and Missoula counties and the Missoula Police Department, for helping to get this case successfully prosecuted,” Alme said.
“The substantial sentence Brian Weber received today is the result of the unwavering commitment and cooperation by the partner agencies of the Montana Regional Violent Crime Task Force (MRVCTF),” said Special Agent in Charge Eric Barnhart. “The crimes he has been found guilty of undermine the security of our society, and the communities Mr. Weber threatened are safer today with him behind bars. The FBI is grateful to the MRVCTF – including the Missoula County Sheriff’s Office, the Lewis and Clark County Sheriff’s office, the Missoula Police Department and the Montana Probation and Parole Bureau – as well as the Department of Justice’s Project Safe Neighborhood for their dedication to this case.”
“Through our cooperative agreement to join FBI’s Regional Violent Crime Task Force, we are making Lewis and Clark County a safer place to live. This task force is an effective way to deal with crime at the county, state and national level,” said Sheriff Leo C. Dutton.
“This is another example of the successes of our partnership with the FBI Regional Violent Crime Task Force,” Missoula County Sheriff TJ McDermott said. “We are fortunate to have an incredibly hard-working group of people who genuinely care about keeping our community a safer place to live.”
Gladwyne Businessman and Co-Conspirator of Chaka Fattah, Jr. Is Sentenced for Embezzlement and Tax ChargesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that David T. Shulick, 48, of Gladwyne, was sentenced today to a term 60 months’ imprisonment for embezzling funds from the School District of Philadelphia and for his part in a scheme to defraud PNC Bank and for filing false tax returns. Shulick was convicted in May 2018 after a jury trial.
At the sentencing hearing, Hon. Harvey Bartle III, found that Shulick embezzled a total of $759,735 from the School District of Philadelphia, and in the process, abused the trust placed in him by the School District.
Between 2010 and 2012, Shulick, and co-conspirator Chaka Fattah, Jr., embezzled funds from the School District of Philadelphia, in part by misrepresenting the educational services that would be provided to students pursuant to a contract between the School District and Shulick’s company, Unique Educational Experiences, Inc. (“UEE”). Shulick secured funding from the School District by promising to provide at-risk students with a level of guidance counseling appropriate for their needs, psychological support services, and school security. Shulick and Fattah Jr. hid the true costs of services provided by UEE by submitting false budgets to the School District of Philadelphia. The budgets contained false entries for benefit costs, inflated staff salaries, and salaries for staff positions that were never filled at the school operated by UEE. As a result of this scheme, defendant Shulick fraudulently obtained funds from the School District of Philadelphia that were supposed to be used to educate students.
“The Court imposed a stiff sentence for good reason in this case,” said U.S. Attorney McSwain. “Shulick promised to provide at-risk school students with counseling, security, and support services. He also promised to pay teachers a decent wage. He broke all of those promises and lined his pockets with funds that he had no business taking, all the while spending hundreds of thousands of dollars renovating his Gladwyne home and his vacation home in New Jersey. Shulick’s actions were an appalling abuse of trust, which the sentence makes clear.”
Shulick and Fattah Jr. also devised a scheme to defraud PNC Bank. Fattah Jr. had defaulted on a loan made by PNC. As part of the scheme, Shulick acted as Fattah Jr.’s lawyer and threatened PNC Bank with the possibility that Fattah Jr. might file bankruptcy if he were unable to resolve his outstanding debts, which would result in the bank receiving little or no repayment on the loan. Defendant Shulick sent a letter to PNC Bank, offering to settle PNC Bank’s claim for $2,500. The letter included a form which represented that Fattah Jr.’s monthly income was $2,500. Shulick’s companies were paying Fattah, Jr. a salary of $75,000 per year, and Shulick and Fattah Jr. had entered into an agreement to increase Fattah Jr.’s compensation.
Shulick also filed false federal income tax returns for tax years 2009, 2010, and 2011, failed to report all of his taxable income in these years, and improperly claimed itemized deductions. Shulick claimed money he had spent renovating his residence and New Jersey shore home as business expenses of his company.
“Not only did Shulick steal from a school district that can use every dollar it gets, he did so under the pretense of helping some of its most vulnerable students,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “Instead, he turned around and used that money to support his own life of luxury. David Shulick acted contemptibly and criminally. The FBI is gratified to see this fraudster brought to justice, and will continue to pursue anyone embezzling money from the United States government.”
“Not only did David Shulick use deceit and fraud to line his pockets with funds that were supposed to be used to educate students, he also skirted his tax obligations,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “Mr. Shulick’s sentence should serve as a reminder that no one is above the law, especially when the integrity of tax administration is at stake.”
The case was investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Education, with the cooperation of the Philadelphia School District’s Office of Inspector General. It is being prosecuted by Assistant United States Attorneys Michael T. Donovan and Christopher Mannion.
Georgia Man Sentenced to Prison for Failure to Register as a Sex Offender and Possession of a Firearm by a Convicted FelonRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri Lydon stated today that Marial Watson, age 29, of Columbus, Georgia, was sentenced in federal court in Charleston, South Carolina, for Failure to Register as a Sex Offender and Possession of a Firearm by a Convicted Felon. United States District Judge Richard M. Gergel, of Charleston, sentenced Watson to 78 months imprisonment and 5 years Supervised Release.
Evidence in this case established that in 2013, Watson was convicted in Georgia of Aggravated Assault with Intent to Rape. Due to this sex offense, Watson was required under state and federal law to register as sex offender, and to keep the registration current, in any state where he lived or worked.
In January 2017, Watson moved to South Carolina, but he failed to notify the authorities in Georgia or to register as a sex offender in South Carolina. In addition to his failure to register as a sex offender, Watson was arrested in April 2017 on unrelated charges. During this arrest, police found a loaded 9 mm handgun and 101 rounds of ammunition in Watson’s possession.
The case was investigated by agents from the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, and Firearms and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001. Assistant United States Attorney Rhett DeHart of the office prosecuted the case.
#####
Four Dallas County Men Plead Guilty in Unrelated Cases to Illegal Possession of FirearmsRead the Press Release
The United States Attorney, Richard W. Moore, announces that the following men entered guilty pleas to federal gun crimes:
On September 14, 2018, George Armstead, a 29 year old resident of Selma, Alabama pled guilty to possession of a firearm after being convicted of a felony. At the change of plea hearing, Armstead agreed that on May 22, 2018, a Selma, AL police officer initiated a traffic stop on a green Honda being driven by Armstead for speeding. During a routine records check using Armstead’s driver’s license information, the officer learned that Armstead had an outstanding warrant. The officer told Armstead he was going to be arrested based on the warrant and asked Armstead if he has weapons or contraband in the vehicle because it would be towed. Armstead told the officer that “his brother’s firearm” was inside the vehicle underneath the passenger seat. The firearm was seized. It is described as a Smith & Wesson, .40 caliber pistol. The firearm had been reported stolen sometime prior to May 22, 2018. Later that day, Armstead was Mirandized and agreed to talk to police. The interview was recorded. Armstead said that the firearm was his and that he placed it underneath the passenger seat. Armstead said that he bought the firearm off the streets for $100 because he thought it was being sold for a good price. Armstead also said that he bought the pistol for protection. He further said that he was a felon and was on state probation for Robbery 1st Degree. Armstead said that he was not a bad guy. At that time, Armstead had been convicted of a felony, Robbery 1st, on April 6, 2015 in the Circuit Court of Dallas County, Alabama, case number CC-2013-000146. Armstead’s sentencing is set for December 14, 2018. Special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and officers of the Selma, Alabama police department investigated the case. The prosecutor assigned to the case is Assistant U. S. Attorney, Gina S. Vann.
On September 19, 2018, Clarence Brenson, a 25 year old resident of Selma, Alabama pled guilty to possession of a firearm after being convicted of a felony. At the change of plea hearing, Brenson agreed that on June 2, 2018, Selma, AL police officers initiated a traffic stop on a vehicle being driven by a female for failing to yield for an emergency vehicle. Brenson was in the front passenger seat and two small children were in the back seat. The officers smelled the strong odor of marijuana and asked the female to exit the vehicle. When she did, she told the officers she had been smoking marijuana. Officers asked her if they would find marijuana if they searched the vehicle and she said, “No” because she smoked it all. She gave permission to search the vehicle. As Brenson exited the front passenger seat officers, observed a Romarm/Cugir, model WSAR-10, 7.62X39 caliber rifle on the floor board. The firearm was loaded. While Brenson was seated, the firearm was between his feet. Brenson told the officers he did not have identification and gave the officers his social security number. Brenson also told the officers he was a registered sex offender. Brenson agreed that he was in constructive possession of the firearm that was between his feet at the time of the traffic stop. A search of the vehicle yielded a small amount of marijuana and spent shell casings. At that time, Brenson had been convicted of a felony, Rape 2nd, on June 13, 2016 in the Circuit Court of Dallas County, Alabama, case number CC-2013-000238. Brenson’s sentencing is set for December 19, 2018. Special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and officers of the Selma, Alabama police department investigated the case. The prosecutor assigned to the case is Assistant U. S. Attorney, Gina S. Vann.
On September 25, 2018, Jermaine Butler, a 27 year old resident of Selma, Alabama, pled guilty to possession of a firearm after being convicted of a felony. At the change of plea hearing, Butler agreed that on May 25, 2018, Dallas County, AL deputies set up a random driver’s license checkpoint in Selma, Alabama. A Chevrolet Impala driven by Butler stopped several yards short of the checkpoint. Deputies motioned for Butler to continue to the checkpoint. Butler then drove past the checkpoint then stopped. As deputies approached the driver’s side of the vehicle, they smelled marijuana and saw one passenger in the vehicle with Butler. Both were asked to exit the vehicle. When Butler opened the front driver’s side door, deputies saw a small amount of marijuana. Butler was immediately detained. Deputies then saw a rifle on the floorboard of the backseat of the vehicle. The rifle was loaded. The rifle is described as a Zastava, model N-PAP DF, 7.62X39 caliber rifle. A probable cause search of the vehicle was conducted. The search discovered another quantity of marijuana stuffed between the front seats. Butler then stated that the rifle and the marijuana were his and the passenger also stated that the rifle and marijuana belonged to Butler. Butler was previously convicted of Assault 1st Degree on March 3, 2015, in the Circuit Court of Dallas County, Alabama, case number CC-2012-000045. Butler’s sentencing is set for January 18, 2018. Special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and deputies of the Dallas County Sheriff’s Office investigated the case. The prosecutor assigned to the case is Assistant U. S. Attorney, Gina S. Vann.
On September 25, 2018, Chadwick Blake, a 31 year old resident of Selma, Alabama pled guilty to possession of a firearm after being convicted of a felony. At the change of plea hearing Blake agreed on October 24, 2017, Daryl Bradford, an Alabama Parole Officer conducted a home visit of Blake at his residence. Bradford found one round of 9mm ammunition in Blake’s pocket. Bradford arrested Blake for violating his probation. Bradford then searched Blake’s residence. Bradford found a Taurus, model Millennium, G2, 9mm pistol. Blake was previously convicted of Assault 2nd, on August 12, 2015, in the Circuit Court of Dallas County, Alabama, case number CC-2015-000123. Blake’s sentencing is set for January 8, 2018. Special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, investigators of the Alabama Attorney General’s Office and officers of the Selma, Alabama police department investigated the case. The prosecutor assigned to the case is Assistant U. S. Attorney, Gina S. Vann.
Four Charged with Southern Illinois Meth ConspiracyRead the Press Release
Four people have been charged with conspiring to distribute methamphetamine in southern Illinois, United States Attorney for the Southern District of Illinois Steven D. Weinhoeft announced today. Scott A. Carnell, 36, of Pacific, Missouri, Jarrett C. Hood, 36, of Walsh, Illinois, Kayla S. Kempfer, 30, of Marissa, Illinois, and Jordan D. Vuichard, 32, of Sparta, Illinois, are named defendants in a one-count indictment charging conspiracy to distribute more than 50 grams of methamphetamine. The indictment, which was returned by a federal grand jury earlier this month, alleges that the offense occurred between 2017 and August 2018, in Jackson, Randolph, and St. Clair Counties.
Kempfer and Hood made their initial appearances in federal court on September 19 and September 26, respectively. They are both being held without bond pending a November 26 jury trial. Carnell and Vuichard have their initial appearances scheduled for October 4 at the federal courthouse in Benton, Illinois.
By law, if convicted, the defendants face a minimum of five years in prison and could receive as much as 40 years imprisonment and fines of up to $5 million.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Sparta Police Department, New Athens Police Department, Marissa Police Department, St. Louis County Police Department and the Federal Bureau of Investigation. The Randolph County State’s Attorney’s Office also assisted in the investigation.
Former State Legislator Sentenced to 33 Months in Prison for Accepting BribesRead the Press Release
BIRMINGHAM – A federal judge today sentenced a former Alabama legislator to nearly three years in prison for accepting bribes from a Birmingham lawyer and an Alabama coal company executive to advocate their employers’ opposition to EPA actions in north Birmingham. U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp Jr. and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Thomas J. Holloman announced the plea.
U.S. District Judge Abdul K. Kallon sentenced former state representative OLIVER L. ROBINSON JR., 58, of Birmingham, to two years and nine months in prison for conspiracy, bribery, honest services wire fraud and tax evasion. Robinson pleaded guilty to the charges late last year. The judge also ordered Robinson to pay $169,151 in restitution to the Internal Revenue Service and to forfeit $390,783 as proceeds of illegal activity. Robinson will be on supervised release for three years following completion of his prison term.
The government filed a motion asking the judge to depart downward from the guidelines sentencing recommendation of 51 to 63 months in prison because of Robinson’s substantial assistance, including trial testimony, in the government’s prosecution of his co-defendants. Prosecutors recommended the 33-month sentence.
A federal jury in July convicted Balch & Bingham partner Joel Gilbert and Drummond Company executive David Roberson in the bribery scheme. They are scheduled for sentencing Oct. 23.
“Robinson betrayed his constituents and neighbors in north Birmingham and Tarrant, selling his elected office to special interests for personal profit. An elected official can scarcely commit a more egregious crime,” Town said. “This former state legislator will never again hold elected office and he will spend the next three years of his life in federal prison.”
“Individuals in a position of public trust must be held accountable when that trust is violated,” Sharp said. “Today, the court is holding Mr. Robinson accountable. Citizens can rest assured knowing that the FBI and our partners will continue to be there to bring those who violate that trust to the bar of justice.”
“Elected government officials should be held to a higher ethical standard and it was obvious that Robinson chose greed over doing the honest thing,” Holloman said. “IRS-CI will continue to put resources on these public corruption investigations in an effort to clean up dirty politics.”
Robinson represented Alabama’s House District 58 from 1998 until he resigned Nov. 30, 2016. He sold his influence as a state legislator to Gilbert and Roberson to aid Balch & Bingham and its client, Drummond, in opposing the Environmental Protection Agency’s efforts to prioritize and expand a Superfund site near Robinson’s legislative district.
EPA had designated an area of north Birmingham, including the neighborhoods of Harriman Park, Fairmont and Collegeville, as the 35th Avenue Superfund Site after finding elevated levels of arsenic, lead and benzo(a)pyrene during soil sampling. In September 2013, EPA notified five companies, including Drummond-owned ABC Coke, that they could potentially be responsible for the pollution. Such a finding could have cost the company tens of millions of dollars in cleanup costs and fines.
According to evidence at trial, Gilbert and Roberson were intent on protecting ABC Coke and Drummond from the tremendous potential costs associated with being held responsible for pollution at the site. They began working to prevent the site’s placement on EPA’s National Priorities List or its expansion into Tarrant or Inglenook. Their plan included advising public officials and residents of north Birmingham to oppose EPA’s actions.
Gilbert and Roberson bribed Robinson with a $375,000 contract paid to him through his non-profit Oliver Robinson Foundation over two years. In return, Robinson made a variety of official acts to support their agenda for Balch and Drummond, according to the government’s sentencing memorandum. Those acts included advocating the Balch and Drummond position in a meeting with the EPA, using talking points drafted by Gilbert and secretly recording the meeting. Robinson also made comments to the Alabama Environmental Management Commission, which oversees the Alabama Department of Environmental Management, urging the commission and the ADEM director to help narrow the list of parties potentially responsible for the Superfund site cleanup. Robinson also voted in the Alabama House of Representatives Rules Committee on a resolution, drafted by Gilbert, opposing the EPA’s efforts in north Birmingham. Robinson always concealed his financial relationship with Balch and Drummond, as required in his contract with Gilbert and Roberson.
The FBI and IRS investigated the case, which Assistant U.S. Attorneys George Martin, Robin Beardsley Mark and John B. Ward prosecuted.
###
Former Sacramento Area Youth Gymnastics Coach Sentenced to over 8 Years in Prison for Possessing Child PornographyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Morrison C. England Jr. sentenced Derek Swede Godfrey, 49, formerly of Rocklin, to eight years and one month in prison for possession of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in October 5, 2006, law enforcement agents executed a search warrant at Godfrey’s home in Rocklin. On his computer, agents located more than 400 videos and 5,000 still images depicting the sexual abuse and exploitation of minors. The day after, Godfrey, a youth gymnastics coach, left the United States for the Netherlands where he had dual-citizenship. On January 25, 2007, a grand jury in Sacramento indicted Godfrey, charging him with one count of possession of child pornography.
In 2012, Godfrey was located in Perth, Australia, where he was once again found to be coaching children’s gymnastics. At that time, Australian authorities arrested Godfrey on charges unrelated to the charges in the United States. In April 2016, Australian authorities agreed to extradite Godfrey to the United States to face the charges pending in Sacramento.
In sentencing Godfrey, Judge England observed that he was particularly troubled by the fact that Godfrey had fled the United States after his crime was detected in 2007, and that Godfrey had been caught with child pornography in Australia in 2012 while his charges in the United States were pending.
This case was the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Former Professor Pleads Guilty to Stealing $236K from WKURead the Press Release
LOUISVILLE, Ky. – A Bowling Green, Kentucky professor has pleaded guilty to defrauding Western Kentucky University, announced United States Attorney Russell M. Coleman.
According to a plea agreement, between 2006 and October 2017, Dettman devised a scheme to defraud Western Kentucky University by diverting concrete and soil test payments from WKU’s Engineering Department for his own personal use. The diverted payments, furthered by interstate wire transfers, resulted in a loss of $236,000 to WKU.
Dettman, 52, pleaded guilty before United States District Court Judge Greg N. Stivers. The former professor faces a maximum 20 years of imprisonment, a combined maximum fine of $250,000, and 3 years of supervised release. As part of the plea agreement, Dettman will be required to pay restitution in the amount of $236,000 to Western Kentucky University.
The case was prosecuted by Assistant United States Attorneys David Weiser and Joshua Judd, and investigated by the Federal Bureau of Investigations (FBI).
#######
Former Morgan Hill Real Estate Broker Convicted of Bankruptcy FraudRead the Press Release
SAN JOSE- Goyko Gustav Kuburovich, also known as “Batzi” Kuburovich and “Gus” Kuburovich, and his daughter, Kristel Kuburovich were convicted of bankruptcy fraud-related crimes by a federal jury announced United States Attorney Alex G. Tse and Special Agent in FBI Special Agent in Charge John F. Bennett. The verdicts were handed down yesterday following a jury trial before the Honorable Edward J. Davila, U.S. District Judge.
The jury found Goyko Kuburovich, 58, formerly of Morgan Hill and currently a resident of Auburn, guilty of one count of bankruptcy fraud, one count of concealment of assets during a bankruptcy proceeding, and one count of making false statements during a bankruptcy proceeding. Kristel Kuburovich, 29, also of Auburn, was found guilty of one count of concealment of assets during a bankruptcy proceeding. Ms. Kuburovich was acquitted of one count of bankruptcy fraud.
Evidence at trial showed that Goyko Kuburovich enlisted his daughter, Kristel Kuburovich, in a scheme to defraud the bankruptcy court for the purpose of concealing Goyko Kuburovich’s real property and cash assets. To implement this scheme, Goyko Kuburovich executed multiple financial transactions, including by and through Kristel Kuburovich. The trial evidence proved that when Goyko Kuburovich filed a bankruptcy petition in 2010, he fraudulently omitted his interest in certain real and personal property, the same assets that were the subject of his financial transactions with his daughter. In reaching its verdict, the jury found that through this scheme to defraud, Goyko Kuburovich knowingly and intentionally concealed approximately $870,000 of his assets from the bankruptcy court, while having over $2.5 million of debt discharged by the bankruptcy court.
On August 25, 2016, a federal grand jury indicted the defendants, charging them with one count of bankruptcy fraud, in violation of 18 U.S.C. § 157(1), and one count of concealment of assets during a bankruptcy proceeding, in violation of 18 U.S.C. § 152(1). Goyko Kuburovich also was charged with one additional count of making false statements during a bankruptcy proceeding, in violation of 18 U.S.C. § 152(3).
The defendants are currently released from custody on separate bonds. The next court appearance is set before Judge Davila on October 9, 2018, at 1:30 p.m. for a hearing on the defendants’ motion for a judgment of acquittal. No date has been set yet for a sentencing hearing.
The maximum statutory penalty for each count is five years imprisonment and a $250,000 fine plus restitution, if appropriate. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Scott Simeon and Jeff Schenk are prosecuting the case with the assistance of Laurie Worthen and Lakisha Holliman. The prosecution is the result of a five-year investigation by the Federal Bureau of Investigation.
Former Miami-Dade County Resident Sentenced to More than 8 Years in Prison for Bank Fraud and Money Laundering SchemesRead the Press Release
A former Miami-Dade County resident was sentenced by U.S. District Court Judge Cecilia M. Altonaga to 97 months in prison, to be followed by five years of supervised release, and was ordered to pay $722,000 in restitution for his roles in bank fraud and money laundering schemes.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Katherine Fernandez Rundle, Miami-Dade State Attorney, Miami-Dade State Attorney’s Office, Juan J. Perez, Director, Miami-Dade Police Department (MDPD), and Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division made the announcement.
Jose Orlando Sanchez Cristancho, a/k/a Orlando Sanchez, 57, a citizen of Colombia who formerly resided in Miami-Dade County, previously pled guilty to one count of conspiracy to commit wire and bank fraud, in violation of Title 18, United States Code, Section 1349, and one count of conspiracy to launder money, in violation of Title 18, United States Code, Section 1956(h).
According to court documents, from 2003 through 2011, Sanchez agreed with other co-defendants to purchase condominium apartments and other real estate in South Florida. Their intention was to obtain mortgage loans on the properties through schemes that would enable them to profit from the loans, or the sales of the property, without having to re-pay the loans.
One of the schemes included recruiting a straw buyer to purchase property (at an inflated price) that Sanchez already owned. Sanchez arranged for the straw buyer to submit a loan application to a bank which he knew was entirely false. Sanchez knew the bank, insured by the FDIC, would rely on it in extending the loan. Sanchez went forward with the sale, and signed a HUD-I form used at the closing which he knew contained false statements about the finances of the purchase. When the purchase closed, Sanchez netted more than $400,000 from the transaction, which he obtained from the loan proceeds the buyer had obtained through the fraudulent application. The straw buyer defaulted on the loan obtained at Sanchez's direction, but Sanchez was able to keep the money the straw buyer had paid him from the loan proceeds. When the property was eventually sold in a short sale, the bank had a loss of $404,000.
In a different scheme, Sanchez applied for a mortgage loan from an FDIC-insured financial institution for the purpose of buying an apartment in Aventura, Florida. He submitted a loan application and then a HUD-I closing form with false statements. Approximately 1 ½ years after the purchase, Sanchez stopped making payments on the loan and the bank began foreclosure proceedings. The property was subsequently sold in a short sale for a loss to the bank of approximately $106,000.
The frauds perpetrated by Sanchez and his co-conspirators resulted in Sanchez receiving in in excess of $1 million from FDIC-insured financial institutions. Losses to those institutions totaled approximately $722,000.
During a prior time period, Sanchez had acquired substantial real estate and money in Colombia from the trafficking of cocaine. Sanchez transferred approximately $1.3 million in drug-derived assets to the United States that he used for numerous real estate purchases and for living expenses. Sanchez laundered his drug proceeds by moving them through numerous bank accounts belonging to co-conspirators and accomplices, and by buying property through shell corporations, in order to disguise the nature and source of his money.
Co-defendants Andrea Marroquin and Luis Fernando Reyes were arrested in Colombia and are in the process of being extradited to the United States. Co-defendant Sergio Hernan Perdomo Lievano remains a fugitive. An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Mrs. Fajardo Orshan commended the investigative efforts of IRS-CI, the Miami-Dade State Attorney’s Office, MDPD, and DEA. This case was prosecuted by Assistant U.S. Attorney Frank H. Tamen.
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.
Former Medical Assistant Sentenced for Oxycodone ConspiracyRead the Press Release
ALEXANDRIA, Va. – A former medical assistant from Woodbridge was sentenced today to four years in prison for her role in leading a conspiracy to distribute oxycodone, which involved supplying thousands of dangerous opioids for distribution.
According to court documents, Tatiana Bailey, 32, was employed as a medical assistant with INOVA Bariatric Surgery in Woodbridge. From at least February 2015 to October 2015, Bailey abused the trust of the doctors who employed her by stealing blank oxycodone prescriptions, to which she had access by virtue of her position as an employee, and forged a number of those prescriptions using an INOVA physician’s name and registration number. She then sold blank and forged prescriptions to others, none of whom were patients of the medical practice, who would fill the prescriptions and use or distribute the oxycodone. During the course of the conspiracy, Bailey facilitated the fraudulent filling of over 90 prescriptions, totaling approximately 6,520 oxycodone pills.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Raj Parekh prosecuted the matter and handled the sentencing hearing. Former Special Assistant U.S. Attorneys Allison Garnett and Troy Edwards provided assistance investigating the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-222.
Former Hedge Fund Manager Sentenced to 96 Months in Prison in Ponzi Scheme CaseRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MICHAEL SCRONIC, the former manager of the Scronic Macro Fund (the “Fund”), was sentenced to 96 months in prison today in connection with his scheme to defraud the Fund’s 45 investors of more than $22 million.
U.S. Attorney Berman said: “For years, Scronic lied to his investors about his Fund’s return, but he has now been brought to justice. We will continue to pursue aggressively frauds like this one, which caused millions of dollars in losses, in order to preserve investor confidence in our capital markets.”
According to the allegations contained in the Indictment and the defendant’s plea hearing:
SCRONIC raised more than $22 million from 45 investors in the Scronic Macro Fund (the “Fund”) from April 2010 to the October 2017. SCRONIC told investors that the Fund had positive returns in all but one of the 22 quarters from January 2012 through June 2017, with the highest reported quarterly return being 13.4 percent in the fourth quarter of 2014. In reality, the Fund lost money in 28 out of 29 quarters of its operation, with a total net loss of about $15.7 million before commissions. The Fund’s only positive quarter was its first quarter of operation in 2010.
As a result of these trading losses, the total assets SCRONIC claimed the Fund had in each quarter far exceeded its actual assets. For example, SCRONIC sent account statements to investors that together showed total fund assets of $21.7 million as of June 30, 2017. In actuality, on that date, the combined balance of SCRONIC’s brokerage and bank accounts was just $102,376.
In addition to losing money on trades, SCRONIC used investor money for personal expenses. His personal expenditures averaged more than $500,000 annually, including monthly rent of $12,275 for his primary residence in Westchester, New York, mortgage payments on a vacation home in Stratton, Vermont, fees for multiple beach and country clubs, including a $30,000 payment to the Stratton Mountain Club in July 2017, and miscellaneous items charged to credit cards in amounts averaging more than $15,000 a month.
As of the summer of 2017, SCRONIC was unable to pay redemptions requested by Fund investors because he did not have sufficient funds on hand. He told investors seeking redemptions that he would pay redemptions only at quarter-end, that he was too busy and preoccupied with a relative’s medical condition to pay redemptions, and that he was unavailable to pay redemptions because he was on vacation. In some cases, SCRONIC ignored redemption requests.
* * *
In addition to the prison term, SCRONIC, 46, of New York, New York, was sentenced to
3 years of supervised release, and ordered to pay $22,026,427 in restitution to his victims.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and also thanked the Securities & Exchange Commission for its assistance in the investigation.
The criminal case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys James McMahon and Daniel Loss are in charge of the prosecution.
Former Financial Officer of Non-Profit Charged with Embezzling over $1.3 MillionRead the Press Release
BOSTON – The former financial officer of a Boston-based non-profit was arrested today and charged in connection with a fraud and embezzlement scheme that that netted over $1.3 million dollars.
Nicole Lescarbeau, 51, of Canton, was charged in an indictment unsealed today with three counts of wire fraud, five counts of bank fraud, and one count of aggravated identity theft. Lescarbeau was arrested this morning and will appear before U.S. Magistrate Judge Judith Dein this afternoon.
As alleged in the indictment, Lescarbeau served as the financial officer of a small, Boston-based non-profit organization. Her duties included managing incoming invoices, paying bills by check and wire transfer, using and paying credit cards, financial account maintenance, and bookkeeping. As a result, Lescarbeau had access to the non-profit’s checkbook, bookkeeping and accounting software, and online bank accounts.
From August 2013 until her termination in January 2018, Lescarbeau stole funds from the non-profit for her personal use. Specifically, Lescarbeau wrote unauthorized checks to herself using the non-profit’s accounting software and affixed the signatures of the authorized signers on the account. It is also alleged that Lescarbeau repeatedly logged on to the non-profit’s online bank accounts and directed unauthorized payments and transfers for her personal benefit, and that she made unauthorized personal charges using the non-profit’s business credit cards. In total, Lescarbeau embezzled approximately $1,389,317 from the non-profit organization.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million. The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, one year of supervised release, a fine of $250,000, restitution, and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Justin D. O’Connell of Lelling’s Economic Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Colombian Councilman Sentenced to Fourteen Years in Prison for Conspiring to Traffic More Than A Thousand Kilograms of CocaineRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced Aureliano Cuero-Cuero (38, Mosquera, Nariño, Colombia), a/k/a “Chavo,” to 14 years in federal prison for conspiring to distribute cocaine on board vessels subject to the jurisdiction of the United States. Cuero-Cuero pleaded guilty on May 23, 2018.
According to court records, Cuero-Cuero was an elected city council member in Mosquera, Nariño, Colombia at the time of his indictment in 2016. Between February and July 17, 2015, Cuero-Cuero was involved in the organizing and dispatching of three go-fast vessels that departed Colombia carrying over 1,300 kilograms of cocaine, but were later interdicted in international waters. The crew members aboard these vessels were arrested and prosecuted in the Middle District of Florida. Cuero-Cuero was arrested in May 2017, in Colombia, and extradited to the United States. Two other co-defendants in this case are awaiting sentencing.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command’s Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Dan Baeza.
Former Allen County Accountant Sentenced for Wire Fraud, Filing Fraudulent Federal Tax ReturnsRead the Press Release
BOWLING GREEN, Ky. – A former Allen County, Kentucky, accountant was sentenced by United States District Judge Greg N. Stivers to 24 months in prison followed by 3 years of supervised release, and ordered to pay restitution of $766,349.59, announced United States Attorney Russell M. Coleman.
Stephen C. Jones, 51, of Scottsville, Kentucky, committed wire fraud between January 2010 and August of 2015, when he devised and executed a scheme to defraud his employer, by diverting $766,349.59 from the company’s bank account to his personal bank account, according to the plea agreement. Additionally, Jones failed to report the embezzled funds as income on his tax returns for tax years 2010 through 2014.
In total, Jones plead guilty to six counts against him, including: wire fraud and five counts of presentation of a false tax return.
Assistant United States Attorney Amanda Gregory prosecuted the case. The Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS), and the Allen County Sheriff’s Office investigated the case.
Forest Man Pleads Guilty to Methamphetamine PossessionRead the Press Release
Jackson, Miss. – Jimmie Terrell Harrison, 43, of Forest, pleaded guilty yesterday, before U.S. District Judge Carlton W. Reeves, to possession with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans.
On March 2, 2018, a box shipped via Fed Ex to an address in Forest, Mississippi, was found to have nearly 10 pounds of methamphetamine. The box was delivered to the house next door to Harrison’s. The box was then picked up and brought to Harrison’s house. Agents searched Harrison’s home and found cocaine and two firearms. The methamphetamine recovered was to be distributed in the central Mississippi area.
This case is the result of an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation, dubbed AOperation Highlife,@ which began as an operation targeting illegal narcotics distribution in east central Mississippi area that involved the distribution of methamphetamine, cocaine and marijuana. The distribution network encompasses the states of California, Tennessee, Alabama, Georgia and Mississippi.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle targeted criminal organizations and seize their assets.
"Methamphetamine has devastated countless communities due to the dramatic health and public safety consequences that typically accompany its introduction into an area," said Special Agent in Charge of Homeland Security Investigations New Orleans Jere T. Miles. "Today’s guilty plea stems from an extensive HSI effort with its federal, state and local partners to dismantle a drug trafficking organization that decimated parts of Mississippi and Alabama with methamphetamine smuggled into the U.S. from Mexico. This operation is a testament to the seamless partnership between HSI, the Mississippi Bureau of Narcotics and the Drug Enforcement Administration, and we are thankful for their assistance as well as the U.S. Attorneys’ to improve the lives of law-abiding residents throughout Mississippi and Alabama."
Harrison will be sentenced on January 9, 2019, at 9:00 a.m. and faces a maximum penalty of life in prison and a $10 million fine.
This case is a result of a joint investigation led by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration and the Mississippi Bureau of Narcotics, with assistance from the Philadelphia Police Department, Neshoba County Sheriff’s Department, Neshoba County District Attorney’s Office, Scott County Sheriff’s Office, Flowood Police Department, Rankin County Sheriff’s Department, Hinds County Sheriff’s Department, Carthage Police Department, Union Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisville Police Department, Mississippi Highway Patrol and the United States Marshal Service. Assistant U.S. Attorney Erin Chalk is prosecuting the case.
Federal Opioid Reduction Task Force Initiative Leads to 76 Arrests in North Carolina Indian CountryRead the Press Release
ASHEVILLE, N.C. – A major law enforcement operation targeting drug trafficking in and around Indian Country in North Carolina has resulted in the arrest of more than 75 individuals on federal, state and tribal charges, announced Secretary of Interior Ryan Zinke and Andrew Murray, U.S. Attorney for the Western District of North Carolina.
The undercover operation, led by the Department of Interior’s (DOI) Opioid Reduction Task Force, in coordination with the Drug Enforcement Administration (DEA), the Cherokee Indian Police Department and multiple federal, state, and local law enforcement agencies, began in March 2018, and aimed at disrupting and dismantling drug distribution networks operating in and around the Qualla Boundary.
In addition to the 76 arrests announced today in connection with DOI’s Opioid Reduction Task Force operation, a concurrent two-year investigation spearheaded by the Bureau of Indian Affairs’ Division of Drug Enforcement and the DEA led to the previous arrest of 56 additional individuals responsible for trafficking opiates and methamphetamine in Indian Country, bringing the total number of those arrested to 132.
To date, the joint investigations have yielded a seizure of more than 3.8 pounds of heroin and Fentanyl; more than 18 pounds of methamphetamine; over 270 Fentanyl and Oxycodone tablets; and more than 100 kilograms of marijuana, with a combined street value of over $1.82 million. Over the course of the investigation, law enforcement also seized five illegally possessed firearms.
“First and foremost, Bravo Zulu to the dozens of law enforcement professionals who are on the front lines and putting their own lives at risk to take these deadly drugs off the streets. President Trump and I could not be prouder of their work,” said Secretary Zinke. “It’s heartbreaking to see the scale of the problem, and rather than further stigmatizing victims, we are cracking down on the dealers who are selling out our children, selling out our communities, and selling out our nation. The Trump Administration is serious about ending the opioid crisis and that means both treatment of those suffering as well as eradicating the drugs from our communities. This week’s law enforcement action gets us closer to that goal.”
“The Eastern Band of Cherokee Indians is a community that has been hard hit by the opioid epidemic. Drug distribution, drug-fueled crimes, and drug abuse pose a grave threat to the safety, stability, cultural preservation, and well-being of the tribal community,” said U.S. Attorney Murray. “The Justice Department and my office are committed to working with our law enforcement partners to stem the flow of drugs onto the Qualla Boundary, and to reduce the opioid abuse epidemic that has devastated Indian Country.”
“Dangerous and deadly drugs, both licit and illicit, see no boundaries,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “If the drugs are destined for the inner city, rural suburbia or Indian Country, regardless, the outcome is the same: they destroy dreams, communities, families and lives. The Eastern Band of Cherokee Indians community, and adjoining areas elsewhere, have felt the sting of drug abuse and addiction. DEA, its law enforcement partners and the U.S. Attorney’s Office are committed to making our communities safer by removing those who push these deadly substances. This investigation was a huge success because of the spirited efforts between DEA, its federal, state, local and tribal law enforcement partners and the subsequent prosecution by the U.S. Attorney’s Office and state and tribal prosecutors.”
“I am extremely grateful to the Secretary of the Interior, the BIA and the multiple state and local agencies who helped make this operation a success. The arrest of these drug dealers is a critical step towards ensuring that the Eastern Band of Cherokee Indians is able to provide the healthy environment our people deserve.” Principal Chief Richard Sneed.
Twelve individuals face federal drug offenses. They are:
- Dontavius Juan Cox, 26, of Sylva, N.C.
- Derek Wilson Driver, 26, of Cherokee, N.C.
- David Charles Fisher, 56, of Bryson City, N.C.
- Timothy Mark Grady, 43, Bryson City, N.C.
- Kandace Rhean Griffin, 29, of Cherokee, N.C.
- Kenneth Dean Griffin, 51, Cherokee, N.C.
- Kevin Dewayne Huskey, 47, of Bryson City, N.C.
- Saryna Michelle Miller, 22, of Bryson City, N.C.
- Jeremy Dwayne Morton, 21, of Bryson City, N.C.
- Javier Fernando Perez, 27, of Norcross, Georgia.
- David William Smith, 30, of Sylva, N.C.
- Dee Anna Wike, 45, of Cherokee, N.C.
Those arrested will have their initial hearings in federal court on Friday. Federal arrests warrants have been issued for Cox and Perez. Other offenses fall under tribal, state and local jurisdictions.
The charges contained in the indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the Bureau of Indian Affairs; the DEA; the Cherokee Indian Police Department; the Swain County Sheriff’s Office; the Jackson County Sheriff’s Office; the McDowell County Sheriff’s Office; the Henderson County Sheriff’s Office; the Rutherford County Sheriff’s Office; the Buncombe County Sheriff’s Office; the Asheville Police Department; the North Carolina State Bureau of Investigation; the North Carolina State Highway Patrol; and the U.S. Marshals Service for their coordinated efforts throughout this investigation.
Assistant U.S. Attorney John Pritchard and Special Assistant U.S. Attorney Alexis Solheim, of the U.S. Attorney’s Office in Asheville, are in charge of the federal prosecutions.
Last year, Attorney General Jeff Sessions announced a series of new actions by the Justice Department to support law enforcement and maintain public safety in Indian Country. Among the actions announced was the deployment of the expanded Tribal Access Program for National Crime Information (TAP), which is designed to provide the Eastern Band of Cherokee Indians and other federally-recognized tribes with access to national crime information databases for criminal and civil purposes. TAP allows tribes to more effectively serve and protect their nations’ citizens by ensuring the exchange of critical data across the Criminal Justice Information Services (CJIS) systems and other national crime information systems.
The Office of Tribal Justice also created the Indian Country Federal Law Enforcement Coordination Group, an unprecedented partnership that brings together sworn federal agents and key stakeholders from 12 federal law enforcement components with responsibilities in Indian Country, with the goal of increasing collaboration and coordination among law enforcement and enhancing the response to violent crime in Indian Country.
“As a member of the Native American Issues Subcommittee of the Attorney General’s Advisory Council, addressing substance abuse and violent crime in Indian Country is a priority,” said U.S. Attorney Murray. “My office is committed to supporting our tribal law enforcement partners and tribal leadership to identify and dismantle drug networks operating in and around Indian Country, and to provide greater access to technology, information, and funding, as we work jointly to increase public safety within the tribal community,” said U.S. Attorney Murray.
Fayetteville Man Sentenced in Federal CourtRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Senior United States District Judge W. Earl Britt sentenced Jason Stewart hollingsworth, 41, of Fayetteville, NC to 65 months imprisonment, followed by 3 years of supervised release.
hollingsworth was named in an Indictment filed on December 12, 2017 charging him with possession with the intent to distribute oxycodone and amphetamine, and possession of a firearm by a convicted felon. On July 9, 2018, Hollingsworth pled guilty to those charges.
According to the investigation, on June 23, 2017, Fayetteville Police Department received a call from a concerned citizen, who reported a vehicle driving in circles in a parking lot near Owens Drive. When officers responded to the scene, they found the vehicle still in motion, with HOLLINGSWORTH unconscious in the driver’s seat. Once officers were able to safely stop the vehicle, and they noticed numerous pills and pill bottles while they were removing HOLLINGSWORTH. Officers conducted a search of the vehicle, with the assistance of a Fayetteville Police Department K9 unit. Officers recovered over 480 pills, containing various substances, including oxycodone and amphetamine. Many of the pills were packaged for resale in plastic bags. Officers also recovered a loaded 9mm handgun from the vehicle. HOLLINGSWORTH was prohibited by law from possessing a firearm due to previous felony convictions from Cumberland County Superior Court, NC.
Investigation of this case was conducted by the Fayetteville Police Department, the Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives, and NMS Labs. Assistant United States Attorney Dena King and Special Assistant United States Attorney Jay Saunders represented the government. Mr. Saunders is a prosecutor with the District 3-A District Attorney’s Office encompassing Pitt County. District Attorney Kimberly Robb assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
Fayetteville Man Sentenced to 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Jermaine James, age 40, of Fayetteville, was sentenced today to 120 months in federal prison followed by five years of supervised release on one count of Distribution of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in February of 2017, the Drug Enforcement Administration (DEA) learned that methamphetamine was being distributed in Northwest Arkansas by James. During the investigation, DEA arranged and conducted a controlled purchase of methamphetamine from James. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 30.6 grams of actual methamphetamine.
James was indicted by a federal grand jury in September 2017 and entered a guilty plea in November 2017.
This case was investigated by the Drug Enforcement Administration (DEA). Assistant United States Attorney Kim Harris prosecuted the case for the United States.
FDA-Approved Drug Epidiolex Placed in Schedule V of Controlled Substances ActRead the Press Release
The Department of Justice and Drug Enforcement Administration (DEA) today announced that Epidiolex, the newly approved medication by the Food & Drug Administration (FDA), is being placed in schedule V of the Controlled Substances Act (CSA), the least restrictive schedule of the CSA.
In June 2018, the FDA announced it approved Epidiolex for the treatment of seizures associated with two rare and severe forms of epilepsy, Lennox-Gastaut syndrome and Dravet syndrome, in patients two years of age and older.
Epidiolex contains cannabidiol (CBD), a chemical constituent of the cannabis plant (commonly referred to as marijuana). The CBD in Epidiolex is extracted from the cannabis plant and is the first FDA-approved drug to contain a purified extract from the plant.
“DEA will continue to support sound and scientific research that promotes legitimate therapeutic uses for FDA-approved constituent components of cannabis, consistent with federal law,” said Acting DEA Administrator Uttam Dhillon. “DEA is committed to continuing to work with our federal partners to seek ways to make the process for research more efficient and effective.”
“The FDA is committed to advancing scientific research and drug development programs that properly evaluate the active ingredients contained in marijuana,” said FDA Commissioner Scott Gottlieb, M.D. “Adequate and well-controlled clinical studies supported Epidiolex’s approval, so prescribers can have confidence in the drug’s uniform strength and consistent delivery that support appropriate dosing needed for treating patients with these complex and serious epilepsy syndromes. The FDA will continue to support rigorous scientific research on the potential medical uses of marijuana-derived products and stand ready to work with product developers who are interested in bringing patients safe and effective, high quality products.”
Marijuana and CBD derived from marijuana remain against the law, except for the limited circumstances that it has been determined there is a medically approved benefit. In those instances, such as here, the drug will be made appropriately available to the public for medical use.Ex-Director and Contractor for the Municipality of Toa Baja Plead Guilty to FeloniesRead the Press Release
SAN JUAN, P.R. – On September 26, 2018, Angel Roberto Santos-Garcia pleaded guilty before Magistrate Judge Bruce J. McGiverin to the theft of federal funds in violation of Title 18, United States Code, Section 641 and on September 27, 2018, Luis Serrano-Perdigon pleaded guilty before Magistrate Judge Camille Vélez-Rivé to conspiracy and bribery in violation of Title 18, United States Code, Sections 371 and 666(a)(2) as well as Social Security fraud in violation of Title 42, United States Code, Section 408(a)(4), announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
As a part of the guilty plea, Santos-Garcia admitted that he served as interim Director of Finance for the Municipality of Toa Baja in 2015. While in that position, he transferred approximately $650,000 in funds from the United States Department of Health and Human Services and United States Department of Housing and Urban Development to the general account and payroll account of the Municipality of Toa Baja. These unauthorized transfers were made in order to pay the municipal payroll and to pay municipal contractors, resulting in the illegal theft of federal funds.
The sentencing hearing for Santos-Garcia is scheduled for December 20, 2018, before District Judge Carmen C. Cerezo. Santos-Garcia faces a maximum sentence of ten (10) years of imprisonment for the theft of federal funds.
In a separate case, Serrano-Perdigon, a contractor, admitted to conspiring with Edgar Arroyo Amezquita, the Director of Facilities for the Municipality of Toa Baja from May 2011 through May 2013, to defraud the municipality and to bribe Arroyo to receive municipal contracts.
As a part of the conspiracy, Arroyo and Serrano-Perdigon submitted fraudulent quote documentation to the purchasing office of the Municipality of Toa Baja using a fictitious company named Professional Sales & Service. In doing so, Arroyo and Serrano-Perdigon utilized, without consent or legal authority, the name and signature of a real person on the fraudulent quote documentation submitted to the municipality. Checks were then issued by the municipality to Professional Sales & Service which were deposited into a bank account in the name of ALS Electronic Service, a company controlled by Serrano-Perdigon. Serrano-Perdigon also made multiple bribe payments to Arroyo, paid in cash and totaling $39,999, in exchange for causing the contracts to be awarded and payments to be made by the Municipality of Toa Baja for Serrano Perdigon. During this same time, Serrano-Perdigon concealed and failed to disclose to the Social Security Administration that he was able to work in order to fraudulently secure Social Security disability benefit payments.
Arroyo pleaded guilty to the conspiracy to defraud and bribery offenses on August 30, 2018. Sentencing before District Judge Carmen C. Cerezo has been scheduled for December 5, 2018 for Arroyo and for December 20, 2018 for Serrano-Peridgon. Arroyo and Serrano-Perdigon each face a maximum sentence of five (5) years of imprisonment for the conspiracy to defraud and a maximum sentence of ten (10) years imprisonment for the bribery offense. Serrano-Perdigon also faces a maximum sentence of five (5) years of imprisonment for the Social Security fraud.
# # #
Eight-Time Convicted Felon Pleads Guilty to Heroin TraffickingRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today to maintaining a drug-trafficking operation out of a storage unit and possessing with intent to distribute heroin.
According to court documents, Demetress Donyah Bratton, 36, was storing, manufacturing, and packaging heroin for distribution out of a storage unit that he was renting in Virginia Beach. After executing a search warrant on the storage unit, Virginia Beach Police recovered 89 grams of heroin, $20,000 in cash, cutting agents, other drug paraphernalia, and four guns. Shortly after the search, Bratton arrived at the storage unit, and SWAT team members arrested him in possession of 38 grams of heroin, cutting agents, more drug paraphernalia, and approximately $1600. Bratton has been trafficking heroin for the past six years and is an eight-time felon.
Bratton faces a mandatory minimum of five years and a maximum term of 40 years in prison when sentenced on January 3, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and James A. Cervera, Chief of Virginia Beach Police, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorney Kevin M. Comstock is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-123.
District Man Sentenced to Nine Years in Prison for Shooting into a Home in Northeast WashingtonRead the Press Release
WASHINGTON – Cortez Williams, 29, of Washington, D.C., was sentenced today to a nine-year prison term for shooting into a window of a home in Northeast Washington, U.S. Attorney Jessie K. Liu announced.
Williams was found guilty by a jury in June 2018 of assault with a dangerous weapon, destruction of property, and related firearms offenses. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Judith Bartnoff. Following his prison term, Williams will be placed on three years of supervised release.
According to the government’s evidence, the victim’s brother owed a drug debt to one of Williams’s cousins. On Valentine’s Day evening, Feb. 14, 2016, Williams and his cousin knocked on the victim’s door in the 800 block of Oglethorpe Street NE. The victim answered and immediately yelled at the men to leave. The victim reacted emphatically because the victim heard that these individuals had shot up another house nearby recently.
The victim called 911 immediately upon their departure, predicting that the two men would return to shoot up her house. Within 10 minutes, Williams fulfilled her prediction. He returned with a scarf partially covering his face and fired five shots at the window where the victim and her family member were standing. Williams fled. An investigation by the Metropolitan Police Department (MPD) led to his arrest in July of 2016.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She acknowledged the efforts of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorneys Allessandra Stewart, Michael Romano, and Brittany Keil, and Paralegal Specialists Richard Cheatham and Antoinette Sakamsa. Finally, she expressed appreciation for the work of Assistant U.S. Attorneys Lindsey Marcus and Kenya Wells, who prosecuted the matter.
Detroit Doctor Sentenced to more than 11 Years in Prison for $8.9 Million Health Care Fraud SchemeRead the Press Release
A Detroit-area doctor was sentenced to 135 months in prison today for her role in a scheme involving approximately $8.9 million in fraudulent Medicare claims for home health care and other physician services that were procured through the payment of kickbacks, were not medically necessary, were not actually provided or, in some instances, were provided by the defendant, who was not a licensed physician during the relevant time period.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Millicent Traylor, M.D., 47, of Detroit, Michigan, was sentenced by U.S. District Judge Robert Cleland of the Eastern District of Michigan. Traylor was convicted in May 2018 of one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive healthcare kickbacks, and five counts of health care fraud following a four-day trial. Traylor’s co-defendant, Muhammad Qazi, 48, of Oakland Township, Michigan, was sentenced to serve 42 months in prison on Aug. 27, her co-defendant Christina Kimbrough, M.D., 39, of Canton, Michigan, was sentenced to serve 27 months in prison on Sept. 26, and her other co-defendant, Jacklyn Price, 34, of Shelby, Michigan, awaits sentencing. Qazi, Price, and Kimbrough each pleaded guilty to one count of conspiracy to commit health care fraud.
According to evidence presented at trial, from 2011 to 2016, Traylor and her co-conspirators engaged in a scheme to defraud Medicare of approximately $8.9 million through fraudulent home health and physician claims. The evidence showed that Traylor, who was unlicensed at the time, acted as a physician for these companies, providing services that were not medically necessary and that were billed to Medicare as if they were provided by a licensed physician. The evidence further showed that Traylor conspired to cause Medicare to be billed for services that were not rendered. To make it appear that these services were medically necessary and actually provided, Traylor and her co-conspirators falsified medical records and signed false documents. Additionally, the evidence at trial showed that Traylor and her co-conspirators paid and received kickbacks in exchange for referring Medicare beneficiaries to serve as patients at the clinics. The trial evidence also revealed that Traylor fraudulently signed the names of licensed physicians on prescriptions for opioid medications, such as oxycodone, as a means of inducing patient participation in the scheme.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and U.S. Attorney’s Office for Eastern District of Michigan. Trial Attorneys Stephen Cincotta and Steve Scott of the Criminal Division’s Fraud Section are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Defendant Pleads Guilty in MS-13 Racketeering Conspiracy CaseRead the Press Release
COLUMBUS, Ohio – Nehemias Joel Martinez-Hernandez, also known as Mysterio, 21, of Columbus, pleaded guilty in U.S. District Court to one count of conspiracy to commit racketeering.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, Franklin County Sheriff Dallas Baldwin and Columbus Police Chief Kim Jacobs announced the plea entered into today before Chief U.S. District Judge Edmund A. Sargus, Jr.
Martinez-Hernandez is one of 23 individuals charged in a second superseding indictment in February who are alleged to be members and associates of the Columbus clique of MS-13.
The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.
The second superseding indictment alleges that the defendants committed a host of overt acts in furtherance of the conspiracy, including: 1) the December 2006 murder of Jose Mendez, a suspected confidential informant, in Perry County; 2) the November 2008 murder of Ramon Ramos on Lockbourne Road in Columbus; 3) the mid-2015 murder of Carlos Serrano-Ramos, a suspected rival gang member, near Innis Road in Columbus; 4) the November 2015 murder of Wilson Villeda near Innis Road in Columbus; and 5) the December 2016 murder of Salvador Martinez-Diaz, a suspected rival gang member, on Melroy Avenue in Columbus.
As part of his plea, Martinez-Hernandez has accepted responsibility for his role in the murder of Serrano-Ramos, as well as an attempted murder and drug trafficking. Martinez-Hernandez faces a maximum sentence of life in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI, ICE, Columbus Division of Police and Franklin County Sheriff’s Office, and the assistance of the Ohio Bureau of Criminal Investigation (BCI) and Homeland Security Investigations (HSI), as well as Assistant United States Attorneys Brian J. Martinez and Jessica H. Kim, who are prosecuting the case.
# # #
Danvers Man Charged with Participating in Bribery and Kickback SchemeRead the Press Release
BOSTON – A Danvers man was arrested today and charged in connection with his role in a conspiracy to defraud a large facilities services company with offices in the Greater Boston area.
Jose Avila, a/k/a Joe Avila, 64, was charged in an indictment unsealed today with one count of conspiracy to commit honest services mail fraud, five counts of honest services mail fraud, and one count of wire fraud. Avila was arrested this morning and will appear before U.S. Magistrate Judge Donald Cabell today.
According to the indictment, Avila was the general manager of a temporary labor company. Lou Amaral, who was previously convicted for his role in the scheme, was a Senior Director of Operations at a facilities services company in the Greater Boston area. It is alleged that, between September 2013 and May 2014, Avila provided bribes and kickbacks to Amaral, and in exchange, Amaral steered lucrative temporary labor contracts to Avila’s employer. It is further alleged that the temporary labor company falsely billed the facilities services company for gift cards which Avila provided to Amaral and others.
In July 2018, Amaral pleaded guilty to conspiracy to commit honest services mail fraud, conspiracy to commit wire fraud, money laundering and tax evasion, and is scheduled to be sentenced on Oct. 9, 2018.
The charges each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $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; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Eric Rosen of Lelling’s Economic Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Couple Sentenced to Federal Prison for Structuring Financial Transactions to Evade Currency Reporting RequirementsRead the Press Release
Jacksonville, Florida – Senior United States District Judge Harvey Schlesinger has sentenced Bobby L. Ratcliffe (60) and Wanda F. Ratcliffe (55), both of Reddick, Florida, to two years in federal prison for conspiracy to structure financial transactions to evade reporting requirements. In addition, a forfeiture order was entered against them in the amount of $4,592,419, which represents the amount of structured cash deposits. Bobby Ratcliffe also was ordered to pay restitution in the amount of $54,908 for the receipt of unauthorized child auxiliary benefits from the Social Security Administration. Both previously pleaded guilty to the offenses.
According to court documents, between August 2014 and July 2015, Bobby and Wanda Ratcliffe structured cash deposits and withdrawals into and out of bank accounts that they controlled. The couple often traveled from their home in the Ocala-area to Jacksonville, Orlando, and Tampa to conduct the transactions. To avoid Currency Transaction Reports, which are required for currency transactions exceeding $10,000 in a single day, they made individual deposits of less than $10,000 at different credit unions, or branches of the same credit union, on the same day or over consecutive days.
In addition to structuring cash deposits, the Ratcliffes made structured cash withdrawals by writing and cashing numerous personal checks made payable to themselves. Between August 2014 and July 2015, they wrote more than 1,750 checks to themselves for cash.
This case was investigated by the United States Treasury Office of Inspector General; the Internal Revenue Service - Criminal Investigation; the Federal Insurance Deposit Corporation - Office of Inspector General; the Social Security Administration – Office of Inspector General; the U.S. Secret Service; and the Marion County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Frank Talbot and Bonnie Glober.
Collier County Tax Return Preparer Charged in 15-Count Tax Fraud IndictmentRead the Press Release
Fort Myers, FL – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Augustin Dalusma with 12 counts of filing false claims to the Internal Revenue Service (IRS) and 3 counts of making or subscribing to false tax returns. He faces a maximum penalty of 5 years in federal prison on each filing of a false claim count and up to 3 years in federal prison for each count of subscribing to a false tax return.
According to the
indictment , between 2014 and 2015, Dalusma intentionally made false and fraudulent claims for tax refunds to the IRS in 12 tax returns that he filed on behalf of others. Additionally, between 2013 and 2015, Dalusma also filed three tax returns to the IRS that willfully underreported his own income.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 Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Simon R. Eth.
Citizen of the Dominican Republic Sentenced to Prison for Supplying Heroin to New Haven Drug RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAFAEL NEFTALI CASTILLO BAEZ, 34, a citizen of the Dominican Republic last residing in the Bronx, N.Y., was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 24 months of imprisonment, followed by five years of supervised release, for supplying heroin to a New Haven drug trafficking ring.
According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad targeted a New Haven-based heroin trafficking organization led by Bienvenido and Antonio Gonzalez. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, revealed that the Gonzalez brothers purchased bulk quantities of heroin from CASTILLO BAEZ and other New York suppliers and sold the heroin through a network of redistributors in New Haven and elsewhere. CASTILLO BAEZ regularly traveled from New York to Connecticut to deliver up to a kilogram of heroin at a time to the Gonzalez organization.
The investigation resulted in federal charges against 24 individuals.
CASTILLO BAEZ has been detained since his arrest on March 24, 2017. On May 25, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin.
CASTILLO BAEZ, who illegally entered the U.S. in 2010, faces immigration proceedings when he completes his prison term.
Bienvenido Gonzalez and Antonio Gonzalez pleaded guilty to related charges. On March 28, Bienvenido Gonzalez was sentenced to 144 months of imprisonment. Antonio Gonzalez awaits sentencing.
The DEA’s New Haven Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments. The New Haven, East Haven and West Haven Police Departments, together with the U.S. Coast Guard, provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Patrick F. Caruso.
Center Point Man Indicted for Producing, Distributing Child PornographyRead the Press Release
BIRMINGHAM – A federal grand jury on Wednesday indicted a Center Point man on multiple counts of producing child pornography, announced U.S. Attorney Jay Town and FBI Special Agent in Charge Johnnie Sharp Jr.
An 11-count indictment filed in U.S. District Court charges DENNIS JAMES HUDSON JR., 28, also known as D.J. Zygi Hudson, Zygi Hudson, Tyler Johnson and Brandon McDaniels, with 10 counts of persuading a person under the age of 18 to engage in sexually explicit conduct to produce an image of that conduct and transmit it over the internet. Hudson is charged with inducing 10 different children to perform such acts between August 2016 and August 2017, according to the indictment. Hudson also faces one count of distributing child pornography between January 2015 and January 2016 using the internet and a file-sharing website.
“The internet and social media makes it easy for disgusting, sexual predators to find and exploit our children,” Town said. “Our law enforcement will continue to vigilantly monitor the internet using every method available to us in order to uncover signs of child exploitation and abuse so that the predators can be arrested by federal law enforcement, indicted by a federal grand jury, prosecuted in a federal court, and, once convicted, sentenced to time in a federal prison,” he said. “Our law enforcement cannot do it all, so it is incumbent upon parents to protect their children by responsibly monitoring their children’s activity on the internet, where there is little left to the imagination.”
The penalty for producing child pornography is 15 to 30 years in prison and a maximum $250,000 fine. The penalty for distributing child pornography is five to 20 years in prison and a maximum $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorneys Manu K. Balachandran and Leann White are prosecuting.
###
California Man Sentenced for Distributing Cocaine in Great Falls and BrowningRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that 49-year old Frederick Lona of Monrovia, California, was sentenced to 12 months in prison, 3 years of supervised release, and a $100 special assessment. U.S. District Judge Brian M. Morris presided over the hearing.
Frederick Lona assisted in facilitating a drug conspiracy in 2011 and 2012 that distributed cocaine and methamphetamine to Great Falls and the Blackfeet Indian Reservation. Lona and his co-defendants obtained the cocaine and methamphetamine in California, and directly supplied individuals in Montana with the drugs for redistribution in the Great Falls and Browning communities. Lona’s four co-defendants were previously sentenced in 2013 for their roles in this offense.
The case was prosecuted by Assistant U.S. Attorney Jessica Betley and investigated by the Federal Bureau of Investigation.
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.
California Ceramics Company Agrees to Pay $175,000 to Resolve False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – A California ceramic materials company will pay $175,000 to resolve allegations that it committed multiple False Claims Act violations relating to awards by the National Science Foundation and the U.S. Army under the Small Business Innovation Research (SBIR) Program, U.S. Attorney Craig Carpenito announced today.
The settlement resolves allegations uncovered by the Office of Inspector General of the National Science Foundation that LoTEC Inc. (d/b/a Vesta Sciences) transferred proceeds of the awards to an undisclosed related company, loaned award funds to other related companies and to LoTEC’s principal, certified that the principal investigator for the awards was primarily employed by LoTEC when she was not, and failed to properly account for hours worked under the awards.
“Companies that contract with the federal government need to clearly and accurately disclose how they are planning to spend public money,” U.S. Attorney Carpenito said. “The government relies on small businesses to research and innovate. But the government also relies on SBIR Program recipients to engage in open communications, to make clear disclosures, and to keep accurate records so that awarding agencies can oversee these important research projects.”
“The SBIR Program is a valuable tool in advancing NSF’s mission to promote the progress of science by increasing opportunities for innovative research by small businesses,” Allison Lerner, National Science Foundation Inspector General, said. “The NSF Office of Inspector General is committed to vigorously pursuing fraud, waste and abuse in the SBIR program. I commend the U.S. Attorney’s Office and our investigative partners for their strong support in this effort.”
“This settlement further demonstrates the resolve of the U.S. Army Criminal Investigation Command’s (USACIDC) Major Procurement Fraud Unit and our law enforcement partners to protect and defend the assets of the United States Army,” Special Agent in Charge L. Scott Moreland, of the USACIDC’s Mid-Atlantic Fraud Field Office, said.
The civil settlement is not an admission of liability or improper conduct by LoTEC.
The government is represented by Assistant U.S. Attorney Daniel Meyler of the U.S. Attorney’s Office Civil Division.
Buffalo Man Sentenced to 6 Years in Prison for Conspiring to Distribute Crack Cocaine in Western PARead the Press Release
PITTSBURGH, PA - A resident of Buffalo, NY, has been sentenced in federal court to 72 months’ imprisonment on his conviction of conspiracy to distribute 28 grams or more of crack cocaine, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on William Wilbon, age 26, of Buffalo, NY.
According to information presented to the Court, in 2015, the Bureau of Alcohol, Tobacco Firearms and Explosives, the Drug Enforcement Administration, and other agencies joined forces in a long-term wiretap investigation of drug trafficking in New Castle, PA. The investigation revealed that William Wilbon conspired with others to possess with intent to distribute and distribute crack cocaine, which was transported from Buffalo, NY, to the New Castle, PA area for further distribution.
Prior to imposing sentence, Judge Fischer stated that the sentence was sufficient but not greater than necessary to fulfill the purposes of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the New Castle Police Department, and the Lawrence County Drug Task Force for the investigation leading to the successful prosecution of Wilbon.