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2 November 2018
Laurinburg Man Sentenced to 50 Months in Prison for Possession of A Firearm by A Convicted FelonRead the Press Release
GREENSBORO, N.C. – A Laurinburg man who fled from police into an occupied home was sentenced to federal prison today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
JERRY LEE ELLERBE JR. pleaded guilty on August 8, 2018, to possession of a firearm by a previously convicted felon. ELLERBE was sentenced byUnited States District JudgeWilliam L. Osteen Jr. to 50 months of imprisonment, followed by 3 years of supervised release.
On April 16, 2018, Laurinburg Police Sergeant Zachary Van Horn attempted to stop the car ELLERBE was driving, after seeing ELLERBE fail to observe a stop sign. ELLERBE did not stop when Sgt. Van Horn used his police blue lights and siren, and instead, took off at a high rate of speed, running through other stops signs and coming to a stop on a dead-end road. ELLERBE fled on foot into a wooded area near a residential neighborhood.
Sgt. Van Horn saw a woman outside a residence who told him that someone just ran inside her house. ELLERBE then came out of that house and was detained by police. Officers returned to the car from which ELLERBE fled and found a Glock .357 pistol on the driver’s seat, loaded with 15 rounds in the magazine and one round in the chamber. They also found marijuana, a digital scale, and pills.
ELLERBE had been convicted in Scotland County of felony possession with intent to sell and deliver marijuana, and was on supervised probation at the time he was encountered by Sgt. Van Horn.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Laurinburg Police Department, and prosecuted by Assistant United States Anand P. Ramaswamy for the Middle District of North Carolina.
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Knoxville Man Sentenced to 10 years in Federal Prison for Trafficking CocaineRead the Press Release
Memphis, TN – Melvin Bullock, 31, of Knoxville, Tennessee, has been sentenced to 10 years imprisonment for conspiracy to distribute 20 kilograms of cocaine and distribution of 20 kilograms of cocaine. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on September 25, 2017, Melvin Bullock was stopped for a traffic violation on I-40 by an agent with the West Tennessee Drug Task Force. During that stop, the agent became suspicious of Bullock after he gave several false answers to questions and presented a fake driver’s license. The agent utilized his canine, who alerted to the presence of narcotics in the back seat of Bullock’s vehicle. Upon further search, 20 individually wrapped bundles of cocaine were found. The total weight of the cocaine was over 20 kilograms, about 50 pounds. The investigation revealed that the drugs came from over the border in Mexico to Houston, where the defendant retrieved them to transport them through Memphis en route to East Tennessee.
On October 31, 2018, U.S. District Court Judge Sheryl H. Lipman sentenced Bullock to 120 months in federal prison.
U.S. Attorney D. Michael Dunavant said, "Interstate 40 is a major drug trafficking corridor into and through West Tennessee. Disrupting drug trafficking organizations and interdicting the flow of poisonous drugs into our communities is a top priority of the U.S. Attorney’s Office, and we work with our federal, state, and local law enforcement partners to remain vigilant in the fight against foreign and domestic drug suppliers. Drug trafficking is not a victimless crime, and this significant federal sentence sends a message that such criminal activity will not be tolerated."
This case was investigated by the West Tennessee Drug Task Force, an extension of the Shelby County District Attorney General’s Office and the Drug Enforcement Administration (DEA).
Special Assistant U.S. Attorney Joseph Griffith prosecuted this case on behalf of the government.
Justice Department Reaches Settlement with Hudson Valley Federal Credit Union for Illegally Repossessing Servicemembers’ CarsRead the Press Release
The Justice Department today announced that Hudson Valley Federal Credit Union has agreed to pay $95,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing vehicles owned by SCRA-protected servicemembers without first obtaining the required court orders. Under the agreement, Hudson Valley has agreed to pay $65,000 to compensate seven servicemembers whose cars it unlawfully repossessed and will pay a civil penalty of $30,000 to the United States.
The Department launched an investigation into Hudson Valley’s repossession practices after learning of two private lawsuits filed in the Southern District of New York. In both lawsuits, the plaintiffs alleged that Hudson Valley violated the SCRA by repossessing the plaintiffs’ vehicles after plaintiffs had entered military service. The Department’s subsequent investigation identified seven additional violations and revealed that, prior to August 2014, Hudson Valley did not have any written policies or procedures that addressed the SCRA’s protections against non-judicial auto repossessions.
Hudson Valley, headquartered in Poughkeepsie, New York, is one of the largest credit unions in the country.
“Financial institutions must recognize and honor their responsibilities to our men and women in uniform,” said Acting Assistant Attorney General John Gore. “Our nation depends upon the selfless devotion and sacrifice of our servicemembers and we must ensure that they receive all rights and protections afforded to them by law.”
“Protecting service members is a high priority for this Office and the country,” said U.S. Attorney Geoffrey S. Berman. “We are pleased that Hudson Valley has taken these remedial steps, and this Office will continue to protect the rights of men and women in uniform.”
The agreement requires Hudson Valley to provide $10,000 in compensation to each of the six affected servicemembers, plus any lost equity in the vehicle with interest. An additional servicemember, whose vehicle was repossessed but returned within 24 hours, will receive $5,000. Hudson Valley has also taken steps to repair the credit of the affected servicemembers.
The agreement resolves the claims and causes of action asserted in the United States’ Complaint against Hudson Valley filed in the United States District Court for the Southern District of New York. Hudson Valley will contact servicemembers to be compensated through this settlement in the upcoming months and will distribute payments at no cost to servicemembers.
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 $467 million in monetary relief for servicemembers through its enforcement of the SCRA. For more information about the Department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/content/locator.php.
Jury Convicts Sedalia Man of Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Sedalia, Mo., man was convicted by a federal trial jury today of his role in a conspiracy to distribute methamphetamine and prescription opioids.
Jackie R. Shelledy, 56, was found guilty of the charge contained in an Aug. 29, 2018, federal indictment.
Evidence introduced during the trial indicated that Shelledy, a member of the Galloping Goose Motorcycle Club, sold methamphetamine and prescription pills to co-defendant Teresa A. Wolfe, 53, of Sedalia. Wolfe then distributed the illegal drugs to other individuals. Shelledy had also purchased methamphetamine from Wolfe.
An undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives made a series of undercover purchases of methamphetamine as well as some prescription pills from Wolfe.
A search warrant was executed at Shelledy’s residence on Feb. 13, 2018. Officers seized drug paraphernalia and a bottle of prescription pills in someone else’s name.
Wolfe and co-defendants Joseph E. Whitlow, 42, of Sedalia, and James “Manny” Smith, 55, of Clinton, Mo., have pleaded guilty to their roles in the drug-trafficking conspiracy that lasted from Jan. 1, 2015, to Feb. 14, 2018. Wolfe also pleaded guilty to 14 additional counts related to distributing methamphetamine. Whitlow also pleaded guilty to being a felon in possession of a firearm.
Co-defendant Randall L. Rozier, 56, of Sedalia, pleaded guilty to being an illegal drug user in possession of firearms. Rozier was in possession of seven firearms when he was stopped by a Sedalia police officer for a traffic violation.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for four and a half hours before returning the guilty verdict to U.S. District Judge Roseann Ketchmark, ending a trial that began Monday, Oct. 29, 2018.
Under federal statutes, Shelledy is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Edwards and Emily A. Morgan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Johnstown Pharmacist Charged in 109-Count Indictment with Illegally Filling Bogus Prescriptions and then Dispensing the DrugsRead the Press Release
PITTSBURGH, PA - A Johnstown, Pa. pharmacist has been indicted by a federal grand jury in Pittsburgh on charges of dispensing and distributing controlled substances and conspiring to distribute and dispense controlled substances, United States Attorney Scott W. Brady announced today.
The 109-count indictment, returned on Oct. 30, named Joseph M. Martella, 53, of Johnstown, Pa.
According to the indictment presented to the court, Martella owned and operated Martella’s Pharmacy located on Franklin Street in Johnstown. The indictment alleges that Martella, a pharmacist, conspired with Dr. Peter James Ridella, who previously pleaded guilty, and with an individual known as "J.R.", to create and submit unlawful prescriptions for oxycodone; oxycodone and acetaminophen, also known as Percocet; oxymorphone, also known as Opana; morphine sulfate, also known as MS Contin and hydrocodone and acetaminophen, also known as Vicodin, and then unlawfully dispensed those controlled substances to other persons.
The law provides for a maximum per count sentence of 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Johnstown Felon Sentenced to Nearly 4 Years in Prison for Illegal Gun PossessionRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa. has been sentenced in federal court to three years and 10 months in prison and three years’ supervised release on his conviction of unlawful possession of a firearm by a convicted felon, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Anthony Rodney Edwards, 31.
According to information presented to the court, on March 15, 2018, Edwards was found in possession of a loaded Norinco .38 caliber pistol. On Mar. 31, 2017, Edwards was convicted in Cambria Co., Pa., of firearms not to be carried without a license, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the United States Marshals Service for the investigation that led to the successful prosecution of Edwards.
Jamestown Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Beau K.C. Jones, 34, of Jamestown, NY, who was convicted of conspiracy to possess with intent to distribute, and distribution of, 50 grams or more of methamphetamine, was sentenced to serve 100 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura Higgins, who is handling the case, stated that the defendant was arrested on December 1, 2016, along with his brother Matthew S. Jones, after a shipment of more than 360 grams of methamphetamine was delivered, via the U.S. mail, to the brothers at Matthew S. Jones’ residence at 70 Colfax in Jamestown. Shortly after the delivery, Beau K.C. Jones was arrested during a car stop by police and the parcel containing the methamphetamine was discovered in the backseat of his vehicle. Matthew S. Jones was arrested later that day during a separate car stop. A safe was found in the trunk of his car containing an additional quantity of approximately 80 grams of methamphetamine.
Matthew S. Jones was previously convicted and also sentenced to serve 100 months in prison.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; and the Jamestown Police Department, under the direction of Chief Harry Snellings.
# # # #Jamaican Man Sentenced for International Drug Trafficking ConspiracyRead the Press Release
RICHMOND, Va. – A Jamaican man was sentenced today to 87 months in prison for his role in transporting 15 kilograms of cocaine from South Carolina to Virginia, as a drug courier for a Panamanian drug trafficking organization (DTO).
According to court documents, in February 2016, Oraine Lawson, 26, and a co-conspirator traveled from Brooklyn to Charleston, South Carolina, for the purpose of receiving a shipment of cocaine. On the same day, law enforcement intercepted 15 kilograms of cocaine on a commercial shipping vessel at the Port of Charleston sent by the Panamanian DTO. The next day, Lawson obtained a bag containing 15 kilograms of cocaine in Charleston from a co-conspirator while under surveillance of law enforcement. Upon taking possession of the cocaine, Lawson and his co-conspirator boarded a commercial bus line and traveled to the Eastern District of Virginia, where law enforcement ultimately executed a drug interdiction operation. During the stop of the bus, law enforcement surveillance observed Lawson’s co-conspirator hide the bag containing the 15 kilograms of cocaine under a seat inside the bus. Shortly thereafter, law enforcement officers seized the bag containing the 15 kilograms of cocaine.
This case was investigated as part of the Organized Crime and Drug Enforcement Task Force (OCDETF) Brother’s Grimm. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Robert Murphy, Special Agent in Charge, Drug Enforcement Administration-Atlanta Division, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Christopher Healy, Acting Deputy Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Charlotte, Colonel Gary T. Settle, Superintendent of Virginia State Police, and Humberto I. Cardounel, Jr., Chief of Henrico County Police, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorneys Erik S. Siebert and Peter S. Duffey prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-108.
Jackson Man Sentenced to 360 Months in Federal Prison on Conspiracy to Distribute Methamphetamine and for Being a Felon in Possession of FirearmsRead the Press Release
Jackson, TN – Stephen Williams, 30, has been sentenced to 360 months imprisonment on federal charges of conspiracy to distribute 50 grams or more of actual methamphetamine and being a felon in possession of firearms. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
This is the latest sentencing in a case involving multiple defendants including Williams, Bernard Cooper, Courtney Cooper, Robert Newsome, Brandon Weddle, Morgan Bond, and Ronricus Chapman on charges of conspiracy to distribute methamphetamine.
According to information presented in court, on December 20, 2015 officers stopped Williams in a silver Chevrolet Impala. Williams stepped out of the vehicle for questioning and officers found a firearm inside. Williams attempted to flee back to his car and punched an officer in the face during a physical altercation. Williams re-entered the vehicle to flee and dragged an officer 25 yards before crashing into a ditch.
Williams tried to flee on foot after crashing. Officers pursued him for 50 yards before apprehending him. The officers continued the search of the car and found a Glock .40-caliber pistol loaded with 15 rounds of ammunition and a 12-gauge shotgun with a modified stock and barrel loaded with 24 rounds of ammunition. When transporting Williams to the Criminal Justice Complex for processing, he again assaulted an officer and threatened to kill him and his family upon release from jail.
U.S. Attorney D. Michael Dunavant said, "Methamphetamine continues to destroy individuals, families, and communities in West Tennessee. This defendant’s lawlessness includes distribution of meth, possession of firearms, and violent encounters with law enforcement. This is exactly the type of armed and violent drug trafficker that deserves a 30-year sentence, and we are happy to hold him accountable. Williams has sowed addiction and violence into the Jackson community, and now he will reap the consequence of a long prison sentence."
During his guilty plea, Williams was held accountable for at least 1.5 kilograms but less than 4.5 kilograms of actual methamphetamine.
On October 30, 2018, U.S. District Court Senior Judge Thomas Anderson sentenced Williams to 360 months in federal prison followed by 5 years supervised release.
This case was investigated by the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Madison County Sheriff’s Department.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on the government’s behalf.
Jackson Man Pleads Guilty Under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss - Julian Miller, 51, of Jackson, pled guilty today before United States District Judge Daniel P. Jordan III to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On November 22, 2017, the Jackson Police Department executed a search warrant at a home in Jackson, Mississippi. While inside, law enforcement discovered that Julian Miller, a convicted felon, had a firearm in his possession. Miller has several previous felony convictions, including convictions for armed robbery and for sales of crack cocaine near schools.
Miller will be sentenced by Judge Jordan on February 8, 2018 at 9:00 a.m. and faces a maximum penalty of life in prison and a $250,000 fine.
The case was investigated by the Jackson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Kristi H. Johnson.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is 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.
Illinois Motor Vehicle Employee Known as "the Plate Plan" Sentenced for Vehicle Registration Fraud SchemeRead the Press Release
St. Louis, MO – Melvin Harmon was sentenced to 33 months incarceration and ordered to pay restitution in the amount of $119,359.92 for conspiracy to defraud the United States and mail fraud by assisting Missouri residents in registering their cars in Illinois.
According to evidence at trial, between January 1, 2015 and December 20, 2016, Melvin Harmon was employed at a Granite City, Illinois office registering vehicles for the State of Illinois Secretary of State. He used his employment to assist Missouri residents in obtaining fraudulent motor vehicle registrations for others in exchange for a fee. Some of the Missouri residents learned of his services when they saw flyers advertising Harmon as “The Plate Man.”
In March 2016, investigators with the Illinois Secretary of State discovered that Harmon had been charging Missouri residents $350.00 to $700.00 in order to fraudulently register their cars in Illinois. Doing so enabled the Missouri residents to evade payment of Missouri taxes. In addition, Harmon altered the price of the vehicles in order to reduce any payments that would be paid to the State of Illinois as a result of the fraudulent registration. The alteration increased the amount he profited through the scheme. The State of Missouri lost in excess of $119,359.92 in sales tax revenue due to the fraudulent conduct. The precise loss of personal property tax income to the State of Missouri and local municipalities has not been determined.
Harmon, 40, Belleville, IL, was found guilty on May 18, 2108 after a federal jury returned five guilty verdicts. He appeared before U.S. District Judge Henry E. Autrey.
The case was investigated by the Missouri Department of Revenue-Compliance and Investigation Bureau and the State of Illinois Secretary of State Police. This case was handled by Assistant United States Attorneys Tracy Berry and Dianna Collins.
Head of Newark, New Jersey, Drug Trafficking Organization Admits Conspiracy to Distribute Heroin, Fentanyl, and Crack Cocaine and Possession of A FirearmRead the Press Release
NEWARK, N.J. – A Newark man today admitted his role in a conspiracy to distribute more than a kilogram of heroin, 150 grams of fentanyl, and 240 grams of crack cocaine as well as being a previously convicted felon in possession of a firearm, U.S. Attorney Craig Carpenito announced.
Ahmad Johnson, a/k/a “OC,” 38, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to a superseding information charging him with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin, 28 grams of cocaine base, and 40 grams of fentanyl, and one count of being a felon in possession of a firearm.
According to documents filed in this case and statements made in court:
From September 2016 through June 2017, Johnson and other members of the Johnson DTO engaged in a heroin distribution conspiracy that operated in and around Newark.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement officers learned that Johnson was a leader of the conspiracy and was responsible for obtaining wholesale amounts of narcotics, including heroin and cocaine, and processing and packaging the narcotics for sale in the Newark area. At times, after the narcotics were processed and packaged for sale, Johnson found users to “test” the narcotics to evaluate the quality, potency, and danger for broader distribution. After the narcotics were tested, members of the Johnson DTO sold the narcotics to other distributors and to users.
The conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The charge of being a felon in possession of a firearm is punishable by up to 10 years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 20, 2019.
U.S. Attorney Carpenito credited special agents and officers with the Drug Enforcement Administration’s High-Intensity Drug Trafficking Area (HIDTA) Group 1, under the direction of Special Agent in Charge Valerie A. Nickerson, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Organized Crime and Drug Enforcement Task Force / Narcotics Unit in Newark.
Defense counsel: Dennis S. Cleary Esq., West Orange, New Jersey
German Shipping Operator Sentenced to Pay $3.2 Million for Obstruction of Justice and Falsifying Official Logs to Hide Deliberate Oil PollutionRead the Press Release
A German shipping company, MST Mineralien Schiffahrt Spedition und Transport GmbH (MST), pleaded guilty and was sentenced today in Portland, Maine, for obstruction of justice and for maintaining false official records to conceal deliberate pollution from one of its ships, the M/V Marguerita, announced Assistant Attorney General Jeffrey B. Clark for the Justice Department’s Environment and Natural Resources Division and United States Attorney Halsey B. Frank for the District of Maine.
MST pleaded guilty today to one count of violating the Act to Prevent Pollution from Ships and one count of obstruction of justice for using falsified log books to hide intentional discharges of oily bilge waste occurring over a nine-month period during which the ship regularly made port calls in Portland, Maine. U.S. District Court Judge Nancy Torresen sentenced the company pursuant to a plea agreement and ordered it to pay a $3.2 million criminal fine and serve a four-year term of probation during which vessels operated by the company will be required to implement an environmental compliance plan, including inspections by an independent auditor.
“Today’s action demonstrates that the Coast Guard and the Justice Department will not stand by while foreign vessels intentionally pollute our oceans and then try to cover up their criminal acts by lying to the U.S. Coast Guard,” said Assistant Attorney General Jeffrey Bossert Clark. “This company is a repeat offender, which makes plain that it has shown contempt for the rule of law. I applaud the investigators and prosecutors who obtained this result.”
MST, a vessel operator based in Bavaria, Germany, was convicted of similar environmental crimes in the District of Minnesota in 2016. That federal case involved the falsification of the oil record book for the M/V Cornelia, which concealed deliberate discharges of oil-contaminated bilge waste, including discharges into the Great Lakes. MST was on probation in the District of Minnesota when it committed the crimes charged in Maine.
According to documents filed in court, MST discharged oily bilge waste from the Marguerita through the use of a so-called “magic pipe” that bypasses required pollution prevention equipment. The discharges violated MARPOL, an international treaty and were not recorded in the vessel’s oil record book, a required ship log regularly inspected by the U.S. Coast Guard to assure compliance.
The case was investigated by the U.S. Coast Guard Investigative Service with assistance from the U.S. Coast Guard Sector Northern New England which conducted the inspection of the ship. The prosecution was handled by Trial Attorney John Cashman and Senior Litigation Counsel Richard Udell of the Environmental Crimes Section of the U.S. Department of Justice, with assistance from the U.S. Attorney’s Office for the District of Maine.
Four Health Care Professionals and a Personal Trainer Indicted for Allegedly Pocketing $6.5 Million for Nonexistent ServicesRead the Press Release
CHICAGO — Four Chicago-area health care professionals and a personal trainer have been indicted on federal fraud charges for allegedly scheming to pocket $6.5 million from private health and auto insurers for physical therapy, chiropractic and other services that were never rendered.
INESSA KATSNELSON, also known as “Inessa Blinov,” “Inessa Danuchevsky” and “Inna,” a personal trainer and singer who worked out of a gym in Northbrook, and MAYA YAKUBOVICH, a medical claims biller in Arlington Heights, recruited friends and family to permit their insurance companies to be falsely billed for nonexistent health care services purportedly rendered by suburban clinics operated by co-schemers, according to the 22-count indictment. In exchange, the friends and family had their insurance deductibles exhausted at no out-of-pocket expense to them, and many received free gym training sessions and massages, the indictment states.
From 2006 until last month, Katsnelson, 50, of Glenview, Yakubovich, 52, of Arlington Heights, and the other defendants – physical therapy center operator YAROSLAVA BOYKO, also known as “Yana Boyko,” 76, of Morton Grove, medical claims biller TETYANA VORONKINA, also known as “Tanya Voronkina,” 54, of Mundelein, and massage therapist VIKTOR DANCHUK, 57, of Roselle – and their co-schemers fraudulently obtained a total of at least $6.5 million from at least nine insurance companies, the indictment states.
The indictment was returned Tuesday in U.S. District Court in Chicago, charging the five defendants with health care fraud. Katsnelson is also individually charged in the indictment with aggravated identity theft for allegedly using the identifying information of a physician to create certain fraudulent claims. Arraignment for all five defendants is set for Nov. 8, 2018, at 9:30 a.m., before U.S. District Judge Sharon Johnson Coleman.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The government is represented by Assistant U.S. Attorneys Heather K. McShain and Matthew L. Kutcher.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Aggravated identity theft is punishable by a mandatory sentence of two years in prison. Health care fraud is punishable by up to ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory United States Sentencing Guidelines.
Former Middletown Inmate Pleads Guilty to Distributing Fentanyl That Caused Overdoses in the JailRead the Press Release
CINCINNATI – Eugene Mongar, 34, pleaded guilty in U.S. District Court to participating in a narcotics conspiracy in the Middletown Jail.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), announced the plea entered into yesterday afternoon before U.S. District Judge Michael R. Barrett.
According to court documents, Mongar was a trustee inmate at the Middletown Jail in December 2017 when co-defendant Louis Cox III, 27, of Middletown, was arrested and booked for drug trafficking.
Cox is alleged to have smuggled fentanyl into the facility on December 1, 2017. Officers were dispatched to the jail on December 2, 2017 for several reported overdoses.
One of those inmates who had overdosed told officers Mongar had approached him with fentanyl in exchange for $20 worth of commissary.
Mongar admitted to distributing the fentanyl. Mongar himself overdosed three times within a two-day period from using the same fentanyl he was distributing.
Mongar and Cox were indicted by a federal grand jury in May 2018, at which time they were both transferred to federal custody.
Mongar pleaded guilty to one count of conspiring to distribute narcotics, a crime punishable by up to 20 years in prison.
Cox has also been charged with participating in a narcotics conspiracy, as well as distributing a controlled substance.
U.S. Attorney Glassman commended the investigation of this case by the DEA, the Middletown Police Department and Assistant United States Attorneys Ashley N. Brucato and Timothy D. Oakley, who are representing the United States in this case.
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Former Executive Director at Venezuelan State-Owned Oil Company, Petroleos de Venezuela, S.A., Pleads Guilty to Role in Billion-Dollar Money Laundering ConspiracyRead the Press Release
A former executive director at the Venezuelan state-owned oil company, Petróleos de Venezuela, S.A. (PDVSA), pleaded guilty today for his role in a billion-dollar international scheme to launder funds embezzled from PDVSA.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Abraham Edgardo Ortega, 51, a Venezuelan national, who was PDVSA’s executive director of financial planning, pleaded guilty to one count of conspiracy to commit money laundering. He is scheduled to be sentenced on Jan. 9 by U.S. District Judge Kathleen M. Williams of the Southern District of Florida, who accepted his plea today.
As part of his plea, Ortega admitted that in his position with PDVSA, he accepted $5 million in bribes to give priority loan status to a French company and a Russian bank, which were both minority shareholders in joint ventures with PDVSA. Ortega was paid for this bribery scheme with the proceeds of a currency exchange scheme, through which $1.2 billion was embezzled, through bribery and fraud from PDVSA. Ortega also admitted that in his position with PDVSA, he accepted $12 million in bribes for his participation in a PDVSA embezzlement scheme involving a loan and foreign-exchange contract.
Ortega admitted that he worked with a co-defendant to launder $12 million that he received as bribe payments. Ortega admitted that he and his co-defendant laundered $12 million through a sophisticated false-investment scheme that received money from a payment made to look like an investment into a fund, but, in fact, the payment was actually laundered out of the fund. Surrounding and supporting this false-investment laundering scheme were complicit money managers, brokerage firms, banks and real estate investment firms in the United States and elsewhere, operating as a network of professional money launderers, Ortega admitted.
Ortega’s co-conspirators indicted on Aug. 16 include former PDVSA officials, professional third-party money launderers and members of the Venezuelan elite, sometimes known as “boliburgués.”
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force’s (OCDETF) “Operation Money Flight,” a partnership among federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
HSI Miami, HSI London, HSI Rome and HSI Madrid investigated this case. This case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida’s Economic and Environmental Crimes Section and Trial Attorney David Johnson of the Criminal Division’s Fraud Section. Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida is handling the asset forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs provided substantial assistance in this matter. The National Crime Agency of the United Kingdom and Italian, Spanish and Maltese law enforcement authorities also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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.
Flushing Man Sentenced for Conspiracy Related to Interstate Prostitution BusinessRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that LiangLiang Guo, 32, of Flushing, NY, who was convicted of conspiracy to use interstate facilities to promote prostitution and to transport individuals in interstate commerce with intent that such individuals would engage in prostitution, was sentenced to serve six months in prison by U.S. District Judge Lawrence J Vilardo.
Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated that the defendant, and co-defendants Feng Yang Chen and Chengqi Li, were part of a multi-state prostitution business that sent female victims to cities and states across the Eastern United States to engage in commercial sex acts. As part of that business, Chen and Li posted advertisements on Backpage.com to set up meetings between clients and prostitutes in Tonawanda, NY and other cities and states. Guo acted as a driver for the prostitution business, driving the females to hotels where they would engage in commercial sex acts. Guo also collected the proceeds of the illicit prostitution business and provided them to Chen.
Today’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Tonawanda Police Department, under the direction of Chief Jerome C. Uschold III; the New York Police Department, under the direction of Chief James P. O’Neill; the South Portland, Maine Police Department, under the direction of Chief Edward Googins; and the Fairview Township Police Department, under the direction of Chief Jason C. Loper.
# # # #Final Defendant Sentenced in Meth Trafficking RingRead the Press Release
BRUNSWICK, GA: The leader of a multi-state methamphetamine trafficking ring will spend more than 23 years in prison after sentencing this week in federal court.
Susan “Ma” Anderson, 67, of Hortense, Ga., was sentenced Oct. 30 by United States District Court Judge Lisa Godbey Wood to 280 months in prison for conspiracy to distribute and possession of 50 grams or more of methamphetamine, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Anderson was the leader of a methamphetamine trafficking organization operating out of Wayne, Brantley, and Ware counties, along with other counties in north Georgia and north Florida. Anderson’s husband, Robert Ira “Pa” Anderson, 67, recently was sentenced to 120 months in prison for his role in the drug operation.
The Andersons were the last of 10 defendants sentenced to prison as part of a joint federal and state operation through the Organized Crime Drug Enforcement Task Force (OCDETF) that targeted methamphetamine trafficking in Georgia and Florida.
Evidence presented during numerous hearings in the case revealed that Susan Anderson was the leader of an organization that distributed multi-kilogram quantities of methamphetamine throughout the Southern District of Georgia, the Northern District of Georgia, and the Northern District of Florida. During a search of the Andersons’ Hortense, Ga., home, about 35 miles from Brunswick, law enforcement authorities discovered Robert Anderson had built trap doors in the home’s floor that concealed kilograms of methamphetamine along with 10 firearms and thousands of dollars in cash.
“This case provides another example of outstanding results achieved through joint federal and state investigation and prosecution of drug traffickers,” said United States Attorney Bobby L. Christine. “Poison pushers in our community will be hunted until captured and placed in prison.”
Additional defendants previously convicted and sentenced for their role in the organization are:
- Kenneth J. Williams, 56, of Hortense, sentenced to 94 months in prison;
- Grover W. Herrin, 61, of Hoboken, Ga., sentenced to 90 months in prison;
- Anthony Joseph Parse, 32, of Jesup, Ga., sentenced to 75 months in prison;
- James Robbin Belch, 59, of Waycross, sentenced to 60 months in prison;
- Charles W. Merkle, 42, of Waycross, sentenced to 36 months in prison;
- Karen Moody, 49, of Nahunta, Ga, sentenced to 32 months in prison; and,
- Lemuel Henderson, 49, of Hoboken, sentenced to 15 months in prison.
In addition, Bonny Wyers, 35, previously was sentenced to 180 months in prison by United States District Court Judge Robert L. Hinkle in the Northern District of Florida for conspiring with Susan Anderson to distribute methamphetamine.
There is no parole in the federal prison system.
U.S. Attorney Christine commended the work of the agencies involved in the joint federal-state investigation, including the FBI, the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Marshal’s Service, the Georgia Bureau of Investigation, the Georgia State Patrol, the Clayton County Sheriff’s Office, Lowndes County Sheriff’s Office, and the Bay County (Florida) Sheriff’s Office.
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division said, “All participating agencies played a crucial role in the eradication of this criminal network. Anderson’s methamphetamine trafficking activities posed a significant threat to the quality of life in Wayne, Brantley, and Ware counties and surrounding areas. The dismantling of this dangerous organization makes these communities safer today. I want to thank our federal, state and local law enforcement counterparts and the United States Attorney’s Office, who had a direct impact in making this investigation a success.”
“This is one more example of drug distribution networks operating in rural Georgia getting a wake-up call from state and federal agents who partnered with local law enforcement officials to address community concerns,” said Jamie Jones, Special Agent in Charge of the GBI’s Southeastern Drug Enforcement Office. “These investigations are conducted jointly across the state on a daily basis by men and women from various departments who are committed to disrupting the clear and present danger drug distribution networks pose to our fellow Georgians.”
Assistant United States Attorney Tania Groover prosecuted the case on behalf of the United States. For any questions, please contact Barry Paschal at the United States Attorney’s Office at (912) 652-4422.
Felon Pleads Guilty to Firearm Possession after Posting Facebook Live VideoRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today to being a felon in possession of a firearm.
According to court documents, Timothy Cureton, 29, was seen by Richmond police officers in a Facebook live video posted on January 25, displaying a brown handgun with an extended magazine. Officers suspected that Cureton stayed at an apartment in Creighton Court. Just five days later, on January 30, officers received information that individuals were storing illegal narcotics at an apartment in Creighton Court. During execution of a search warrant, officers located two firearms in a bedroom closet. One of those firearms was a brown Glock handgun, consistent with the firearm Cureton displayed in the Facebook live video. Inside the same bedroom of the residence, officers located Cureton’s social security card and a document with Cureton’s name on it.
Cureton pleaded guilty to being a felon in possession of a firearm and faces a maximum penalty of 10 years in prison when sentenced on February 5, 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea. Assistant U.S. Attorney Heather H. Mansfield 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 is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-108.
Federal Court Strikes Down Two California Statutes as UnconstitutionalRead the Press Release
SACRAMENTO, Calif. — The U.S. District Court for the Eastern District of California entered orders in two cases during the last two weeks declaring California statutes unconstitutional because they discriminated against the United States in violation of the United States Constitution. The cases are United States v. California, No. 2:18-cv-721, and United States v. Kernen Construction, 2:17-cv-1424.
In United States v. California, decided yesterday, the court struck down California Senate Bill 50 (“SB 50”), enacted in October 2017 for the express purpose of “discourag[ing]” conveyances of federal land. The statute provided that any conveyance of a property interest in federal land would be void unless the State Lands Commission was given a right of first refusal over government proposals to sell federal land. After the United States filed suit last spring, California amended the statute, narrowing its application to federal lands managed by the National Forest Service, the federal Bureau of Reclamation, the federal Bureau of Land Management, the U.S. Fish and Wildlife Service, or the National Park Service; and federal lands containing national monuments, national marine sanctuaries, national conservation lands, or lands in the National Register of Historic Places. Nonetheless, the court ruled that the statute both regulated the United States and discriminated against persons with whom the United States deals, in violation of the Supremacy Clause of the United States Constitution.
The order explains that SB 50 directly regulates the United States and “trespasses on the federal government’s ability to convey land to whomever it wants” by requiring it to offer a right of first refusal. In addition, the court found the statute discriminates against purchasers and grantees of federal lands, because only they must present a certificate of compliance from the Lands Commission in order to record conveyance documents, and only they are subject to monetary penalties if they fail to do so. In addition to declaring the statute unconstitutional, the court permanently enjoined California and the Lands Commission from enforcing it.
Attorney General Jeff Sessions issued a statement following the district court’s ruling declaring SB 50 unconstitutional. He stated, “The court’s ruling is a firm rejection of California’s assertion that, by legislation, it could dictate how and when the federal government sells federal land. This was a stunning assertion of constitutional power by California, and it was properly and promptly dismissed by the district judge. It is unfortunate that, in the interim, California forced both the Justice Department and the court to spend valuable time and resources to dispose of its baseless position.”
In United States v. Kernen Construction, the court entered an order on October 16, 2018, ruling that California Health & Safety Code § 13009.2 is unconstitutional because it unconstitutionally discriminated against the United States in violation of the Supremacy Clause. Section 13009.2 was specifically intended to reduce damages the United States may recover for wildfires caused by the neglect of other parties. The statute imposed four different limitations on compensation for the United States but did not impose any of those limitations on recoveries by private landowners. The court found that Section 13009.2 “systemically undervalues damage to National Forest Land,” and explained that when private parties are excluded in this way from the burdens imposed by a state statue, there is no political check against abuse of the statue’s regulatory authority, and the federal government’s operations may be unfairly burdened. The court found no “sensible distinction” to justify disparate treatment of the United States as a landowner seeking damages caused by wildfires.
“Since the founding of the Republic, it has been fundamental to our constitutional system that a state may not discriminate against the United States or those with whom it deals,” said U.S. Attorney McGregor W. Scott for the Eastern District of California. “We have vigorously defended this principle in these cases, and we will continue to do so as necessary.”
In United States v. California, the United States is represented by Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division, with lead counsel Deputy Assistant Attorney General Eric Grant, Justin Heminger, Stacy Stoller and Peter McVeigh, and Civil Chief David Shelledy and Assistant U.S. Attorney Joseph Frueh of the U.S. Attorney’s Office for the Eastern District of California. In United States v. Kernen Construction, the United States is represented by Civil Chief Shelledy and Assistant U.S. Attorneys Colleen Kennedy and Benjamin Wolinsky.
Ex-Probation Officer Pleads Guilty to Obstructing Federal InvestigationRead the Press Release
ALEXANDRIA, Va. – A former probation officer pleaded guilty today to obstructing a federal grand jury investigation into armed drug traffickers and gang members.
According to court documents, Abass Conteh, 28, of Dumfries, served as a Virginia Department of Corrections Probation and Parole Officer working in Prince William County in 2017. As part of his duties, Conteh met with law enforcement officers and discussed ongoing criminal investigations, including with a Prince William County Police Department (PWCPD) gang detective. During the course of 2017, Conteh used his cell phone and social media accounts to convey confidential law enforcement information about ongoing federal investigations into drug traffickers and gang members. Conteh learned this information from the PWCPD detective and other sources. During these communications, Conteh provided advice to individuals under investigation on how to avoid being prosecuted.
For example, Conteh, informed his cousin Nasiru Carew, a multi-time convicted felon, that federal law enforcement were investigating the individuals who supplied local rappers with guns, money, and drugs. Conteh revealed further information to Carew he learned from the PWCPD detective, including that the “FEDS got they eye on Shy Glizzy and GG etc. The FEDS are investigating MS-13 and the [expletive] supplying the guns, the drugs, and money.”
In March 2017, Conteh informed Carew that federal law enforcement were investigating Tarvell Vandiver, who was the leader of the Imperial Gangsta Blood gang. Carew later passed this information to Vandiver, who he had conspired with to distribute controlled substances.
In December 2017, the PWCPD Detective informed Conteh that federal law enforcement were investigating Alpha Kamara and his sources of supply for narcotics. Shortly thereafter, Conteh revealed the information to Carew and later another individual. Conteh wrote, “[The PWCPD detective] brought All their names up. He never brought their names up until Alpha got womped. The feds goal is to find the supplier for the guns and drugs… They can’t do [expletive] to nobody if alpha [Kamara] don’t snitch”.
In January 2018, Kamara pleaded guilty to being an armed drug trafficker (1:18-cr-12). In April, Carew pleaded guilty to a drug trafficking offense (1:18-cr-8). In May, Vandiver pleaded guilty to drug trafficking and firearms offenses (1:18-cr-16).
Conteh pleaded guilty to obstruction of justice and faces a maximum penalty of 20 years in prison when sentenced on Feb. 22, 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.
Conteh, Carew, Vandiver, and Kamara were prosecuted as part of Operation Tin Panda, which has resulted in 44 federal convictions and was investigated as part of the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Barry M. Barnard, Chief of Prince William County Police, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorneys Uzo Asonye and Carina A. Cuellar are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-367.
Election Day Hotlines to be Operated by the United States Attorney's Office and the New Hampshire Attorney General's OfficeRead the Press Release
CONCORD, N.H. – United States Attorney Scott W. Murray and New Hampshire Attorney General Gordon J. MacDonald announced today that both the United States Attorney’s Office and the New Hampshire Attorney General’s Office will staff voting inquiry and complaint lines at their respective offices throughout the day and evening on Election Day, November 6, 2018.
The New Hampshire Attorney General’s toll free election line phone number is:
1-866-868-3703
(1-866-VOTER03)This phone line will be staffed from 6 am to 9 pm on Election Day. Inquiries and complaints may also be submitted via e-mail at [email protected].
The United States Attorney’s election line phone number is:
(603) 230-2532
This phone line will also be staffed from 7 am to 8 pm on Election Day. Inquiries and complaints may also be submitted through the United States Attorney’s Web site at www.usdoj.gov/usao/nh by clicking on the “e-mail us” link. A Federal Election Fraud Fact Sheet that explains what triggers federal criminal jurisdiction in connection with elections and voting rights can also be found on the United States Attorney’s Web site, www.justice.gov/usao-nh.
The state and federal election lines are available to all individuals who may have questions regarding their voting rights or who want to file complaints with the New Hampshire Attorney General or the United States Attorney regarding their right to vote or any other election law violation.
For further information, please contact Assistant Attorney General Matthew Broadhead at the New Hampshire Attorney General’s office at (603) 271-3650, or Assistant United States Attorney Seth R. Aframe at (603) 230-2532.
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East Bay Man Pleads Guilty to Income and Employment Tax FraudRead the Press Release
OAKLAND – Robert Lacome, Jr., pleaded guilty in federal court today to tax evasion and willful failure to account for and pay federal employment taxes, announced United States Attorney Alex G. Tse and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Tara Sullivan. The plea was accepted by the Honorable Jon S. Tigar, U.S. District Judge.
In pleading guilty, Lacome, 50, of Castro Valley, Calif., admitted he willfully failed to report all his income and willfully failed to account for, and pay over, employment taxes. Specifically, from 2009 through 2014, Lacome owned and operated RMS Moving Company (RMS), a moving and relocation services business. During that period, he received more than $5 million in gross receipts from the operation of RMS but evaded assessment of income tax on the income he received from the company. To conceal his tax fraud, Lacome willfully failed to file income tax returns reporting his income from RMS. Further, Lacome structured currency transactions at his bank in amounts less than $10,000 in order to evade the bank currency transaction reporting requirement to the Internal Revenue Service. Lacome further admitted that from 2010 through 2014, he willfully failed to account for and pay over more than $600,000 in employment taxes to the IRS that he was required to withhold from the wages he paid to RMS employees. Combined, Lacome’s tax fraud resulted in losses to the United States of more than $1.1 million.
On September 18, 2018, Lacome, was charged by Information with three counts of tax evasion, in violation of 26 U.S.C § 7201, and 12 counts of willful failure to account for and pay over taxes to the Internal Revenue Service, in violation of 26 U.S.C. § 7202. Pursuant to today’s plea agreement, Lacome pleaded guilty to one count of tax evasion and one count of willful failure to account for and pay over tax to the Internal Revenue Service. If Lacome complies with the plea agreement, the remaining charges will be dismissed at sentencing.
Judge Tigar scheduled Lacome’s sentencing hearing for March 1, 2019. The maximum statutory penalties for the tax evasion count and willful failure to account for and pay over employment taxes count are the same: five years in prison and a fine of $250,000. In addition, the court may order restitution and an additional period of supervised release. However, any sentence will be imposed by the court only 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. Attorney José A. Olivera is prosecuting this case with the assistance of Kathy Tat and Larry Garland. The prosecution is the result of an investigation by IRS, Criminal Investigation.
Eagle Grove Man to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced November 2, 2018, to seven years in federal prison.
Gregory Stockdale, 52, from Eagle Grove, Iowa, received the prison term after a June 12, 2018, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Stockdale admitted that from about February 2017 through November 2017, he was involved in a conspiracy that distributed 1.5 kilograms of actual (pure) methamphetamine in the Eagle Grove, Iowa area. Evidence showed Stockdale was involved in meth dealing for over ten years. In addition, Stockdale and a co-conspirator each possessed a firearm during an attempted drug deal. A search warrant was executed at Stockdale’s residence where officers seized over 8 grams of pure methamphetamine, $600 in cash, and other indicia of drug distribution including a drug scale and packaging materials.
Stockdale was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Stockdale was sentenced to 84 months’ imprisonment. He must also serve a four-year term of supervised release after the prison term. There is no parole in the federal system. Stockdale is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Iowa Division of Criminalistic Laboratory, Eagle Grove Police Department, and the Wright County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-3057.
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Eagle Butte Man Sentenced for Larceny and Failure to AppearRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Larceny (Aiding and Abetting) and Failure to Appear was sentenced on October 29, 2018, by U.S. District Judge Roberto A. Lange.
Brady One Feather, age 30, was sentenced to time served through November 13, 2018, 4 years of supervised release, restitution in the amount of $4,367.98, and a special assessment to the Federal Crime Victims Fund in the amount of $200.00.
One Feather was indicted by a federal grand jury on August 16, 2017, for the Larceny and on June 12, 2018, for the Failure to Appear charges. He pled guilty to both charges on August 6, 2018.
The Larceny conviction stemmed from an incident on February 5, 2017, when Bradley and Brady One Feather took a vehicle that they knew was stolen. The vehicle was vandalized while in One Feather’s possession. Bradley One Feather, a co-defendant in the case, was sentenced on February 5, 2018, to time served, 3 years of supervised release, and $4,077.99 in restitution.
The Failure to Appear conviction stemmed from an incident on May 17, 2018, when One Feather was summoned to appear before U.S. Magistrate Judge Mark A. Moreno for a scheduled hearing for his Larceny charge and failed to appear for court as directed.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the U.S. Marshal Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
One Feather was immediately turned over to the custody of the U.S. Marshals Service.
Duquesne Felon Charged with Illegally Possessing Loaded Pistol and AmmunitionRead the Press Release
PITTSBURGH, PA - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on Nov. 1, named Dontez Peoples, age 27, formerly of Duquesne, Pa.
According to the indictment, on or about May 2, 2018, Peoples possessed a loaded 9mm caliber Glock pistol and ammunition. It is unlawful for Peoples, who has previously been convicted of a crime punishable by a term of imprisonment exceeding one year, to possess a firearm or ammunition.
The law provides for a maximum total sentence of ten years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Nicole Vasquez Schmitt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Munhall Police Department, and the Allegheny County Police Department conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Orlando Genoa-Maldonado, 55, a Dominican national formerly residing in Boston, was sentenced by U.S. District Court Judge F. Dennis Saylor to 46 months in prison with 18 of those months to be served consecutive to a state sentence that Genoa-Maldonado is currently serving. Upon completion of this sentence, Genoa-Maldonado will be subject to deportation. In June 2018, Genoa-Maldonado pleaded guilty to one count of illegally reentering the United States after deportation.
In February 2000, Genoa-Maldonado was convicted in federal court in Pennsylvania of distributing heroin. Upon completion of his sentence, Genoa-Maldonado was placed into removal proceedings, and on March 10, 2004, he was deported to the Dominican Republic. In May 2016, federal officials encountered Genoa-Maldonado at MCI Cedar Junction. Earlier that year, Genoa-Maldonado had been sentenced to nine-to-10 years for heroin trafficking.
United States Attorney Andrew E. Lelling and Todd M. Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Doctor Practicing in Dublin Charged with Health Care Fraud, Distributing Controlled Substance Through Pain Cream Scheme and Suboxone ClinicRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged a Central Ohio doctor with charges related to a health care fraud scheme that included marketing prescription creams in Sav-a-Lot and low-income neighborhoods and persistently mailing those creams to Medicaid customers, as well as prescribing and distributing Suboxone without medical necessity.
Bernard Oppong, 60, of Blacklick, Ohio was charged in a seven-count indictment on October 30 and appeared in federal court today at 9am before U.S. District Judge Algenon L. Marbley.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine and Steven W. Schierholt, Executive Director, State of Ohio Board of Pharmacy announced the charges.
According to the indictment, from January 2013 until April 2017, Oppong conspired to commit health care fraud.
Oppong was employed as a doctor at Health and Wellness Medical Center located on Perimeter Drive in Dublin. The center is affiliated with Health and Wellness Pharmacy on Blazer Parkway in Dublin. Co-defendants also previously operated a pharmacy location within Sav-a-Lot on Mock Road in Columbus.
Specifically, it is alleged Oppong and others sought to enrich themselves by billing for compound creams that were not provided or were not medically necessary, billing for counseling services that were not provided, billing for individual counseling sessions that actually occurred in a group setting and billing for counseling services performed by an unqualified individual when there was no proper supervising physician.
Compound Creams
As part of the conspiracy, it is alleged Oppong and others prescribed and Medicaid was billed for compound creams to treat pain, scarring and acne. Health and Wellness Pharmacy billed Medicaid $3 million for the creams, and Oppong was the ordering provider for more than half a million dollars of the claims.
For example, between January 2014 and April 2015, Health and Wellness Pharmacy submitted 1,436 claims for one compound cream, known as VersabaseA. The pharmacy with the second-highest amount of claims for that cream in that time period only submitted 202 claims.
During the first quarter of 2015, Health and Wellness would sometimes bill for less than 10 prescriptions per day, and on other days it would bill for as many as 477 prescriptions. It also billed for filling prescriptions on Saturdays and Sundays when the pharmacy was not open.
It was further part of the alleged conspiracy that co-conspirators billed for the creams with no medical necessity, as patients never requested the creams, were never actually prescribed them and had never met with Oppong.
The pharmacy allegedly marketed the compound creams at Clinic 5 (a Suboxone clinic), Sav-a-Lot and through a mobile van unit.
It is alleged patients with CareSource were targeted and told they were receiving free samples of pain cream. Then they began to receive more cream in the mail without requesting more. These were also billed to CareSource.
Customers at Sav-a-Lot and in low-income neighborhoods were asked to fill out a survey asking about any conditions that they suffered from. Then, they would allegedly receive the compound creams in the mail every month, even when customers directed the co-conspirators to stop sending them. Many of these customers never met with a doctor, nor did they know Oppong, the prescribing physician.
Suboxone
Oppong was registered through the DEA to prescribe the drug addiction treatment Suboxone to up to 275 patients at any one given time.
Health and Wellness Medical Center allegedly submitted fraudulent claims to Medicaid for psychotherapy services that were never rendered to patients.
Specifically, patients indicated they would sit in a room with a timer. When the timer went off, they were allowed to leave and receive their Suboxone prescription, which was written by Oppong and co-conspirators. No counseling services were provided during this time. Some patients reported coloring in coloring books during the time they were in the room.
Oppong allegedly pre-signed prescriptions for Suboxone and left them at the medical center for anyone to distribute. Prescriptions were issued to patients who had repeatedly failed urine tests.
It was part of the conspiracy, according to the indictment, that the medical center treated patients paying with cash differently than those with insurance. The patients paying with cash only had appointments every two weeks or once a month, and paid $300. Insured patients had appointments three times a week. Cash-paying patients were only required to attend 15 to 30 minutes of counseling, while insured patients were required to stay for one hour.
Oppong and co-conspirators averaged more than 150 patients per day.
Oppong is charged with one count of conspiracy to commit health care fraud and one count of executing a health care fraud scheme (each punishable by up to 10 years in prison), as well as four counts of making false health care statements (five years per count) and one count of conspiracy to distribute a controlled substance (15 years).
Darrell L. Bryant, 43, and Gifty Kusi, 34, both of Hilliard, were charged July 2017 in a related indictment and are scheduled for trial on December 3. Bryant and Kusi owned and operated both Health and Wellness Pharmacy and Health and Wellness Medical Center. They are each charged with one count of attempt and conspiracy to commit health care fraud and four counts of health care fraud.
A final defendant Jornel Rivera, 54, of Dublin, pleaded guilty in May 2018 to making false statements related to health care matters. Rivera served as the Medical Director of Health and Wellness Medical Center. His sentencing hearing has not yet been scheduled.
“Just as we aggressively investigate and prosecute those perpetuating the opioid epidemic through prescription pain-killing opioids, we must identify and hold accountable those who are fraudulently prescribing addiction-treatment opioids,” U.S. Attorney Glassman said. “If we hope to extricate ourselves from this epidemic, we must also put an end to the abuse of Suboxone.”
“Oppong is accused of prescribing treatments that weren’t medically necessary, that weren’t actually provided, or that were for people he never met,” said Ohio Attorney General Mike DeWine. “Drug treatment should be effective and honest, but in this case, our investigation found that it wasn’t.”
U.S. Attorney Glassman commended the investigation of this case by the Ohio Attorney General’s Office’s Medicaid Fraud Control Unit, State of Ohio Board of Pharmacy, HHS-OIG, FBI and DEA, as well as Assistant United States Attorneys Kenneth F. Affeldt and Maritsa A. Flaherty, who are prosecuting the case.
This case is being prosecuted as part of the Department of Justice’s Opioid Fraud and Abuse Detection Unit. Assistant United States Attorney Flaherty represents the unit in the Southern District of Ohio, which is one of 12 Districts to receive funding for such a prosecutor.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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District Man Pleads Guilty to Federal Charges for Escaping from Halfway House and Possession of a HandgunRead the Press Release
WASHINGTON – Bijon Brown, 23, of Washington, D.C., pled guilty today to federal charges stemming from his escape from a halfway house and his subsequent arrest in possession of a loaded semi-automatic pistol, announced U.S. Attorney Jessie K. Liu.
Brown pled guilty in the U.S. District Court for the District of Columbia to charges of escape from custody and unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. The plea agreement, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of five years in prison, to be followed by a term of supervised release. The Honorable Senior Judge Royce C. Lamberth scheduled sentencing for May 17, 2019.
According to the government’s evidence, on Feb. 27, 2018, Brown was residing in a halfway house and completing his sentence in an earlier case. That day, staff from the Piedmont, Va. Regional Jail arrived at the halfway house, expecting to return Brown to incarceration because he was having disciplinary issues. Instead, Brown exited through a window and fled.
Brown was arrested by the Metropolitan Police Department (MPD) on April 17, 2018. That day, officers responded to the 2400 block of Elvans Road SE for a report of a man with a gun. They found Brown inside the entryway of an apartment building. Brown ran from police, down multiple flights of stairs, and tossed a handgun as he fled. He was caught and arrested. His handgun, a Glock 17 9mm pistol, loaded with one round in the chamber and 29 rounds in an extended clip, was recovered from the floor.
Since 2015, Brown has been convicted of charges in three separate cases in the Superior Court of the District of Columbia. In March 2015, Brown pled guilty to a charge of attempted assault with a dangerous weapon for a shooting that took place on Feb. 16, 2015, in the 2500 block of Pomeroy Road SE. Brown fired approximately four or five shots in the direction of two juvenile brothers, hitting one in the leg. He was sentenced to six months of incarceration, but the time was suspended on the condition that he complete 12 months of supervised probation. While on probation, on Aug. 21, 2015, Brown exchanged gunfire with another individual while onboard a D.C. Metrobus in Southeast Washington. Brown was convicted of unlawful possession of a firearm and sentenced to 18 months in prison, with all but a year and a day suspended. Brown was released from jail on Aug. 16, 2016 and was arrested again in a third case just eight days later. In that case, he pled guilty to unlawful use of a motor vehicle, and was sentenced to 14 months in prison. After sentencing on the latter charge, Brown remained incarcerated until he was transferred to the halfway house and subsequently escaped.
In announcing the plea, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department, including detectives and officers from the Seventh Police District. She also commended the efforts of Assistant U.S. Attorneys Ellen D’Angelo and William Schurmann, who investigated and prosecuted the case.
DEA Announces 2018 National Drug Threat AssessmentRead the Press Release
WASHINGTON – DEA Acting Administrator Uttam Dhillon today announced results of the 2018 National Drug Threat Assessment, which outlines the threats posed to the United States by domestic and international drug trafficking and the abuse of illicit drugs.
“This report underscores the scope and magnitude of the ongoing opioid crisis in the United States,” said Acting Administrator Dhillon. “The information in the report represents data and critical intelligence from our law enforcement partners that was gathered over the past year. This report highlights the necessity of using all the tools at our disposal to fight this epidemic, and we must remain steadfast in our mission to combat all dangerous drugs of abuse.”
In response to the DEA’s assessment, Attorney General Jeff Sessions explained that in the last year the Department of Justice has surged resources to those areas most affected by violence and drug abuse, has targeted the most violent offenders, and continues to take a common sense approach to the charging and sentencing of drug trafficking offenses, holding traffickers accountable and helping to protect the American people.
Following the lead of President Trump and Attorney General Sessions, the United States Attorney’s Office of the Northern District of Oklahoma is aggressively prosecuting crimes involving illegal opioid distribution.
“Oklahoma is not immune to the plague that is the opioid crisis. As the chief federal law enforcement official in northeastern Oklahoma, I have observed an uptick in the number of opioid related investigations and prosecutions that include heroin, fentanyl and prescription opioids. We are focused on identifying and prosecuting those who are responsible for fueling the opioid epidemic. Defendants have included everyone from licensed medical professionals to individuals involved in multi-level drug distribution organizations with international ties. We view all of these individuals as drug traffickers, and no one is exempt from prosecution.”
One recent opioid related prosecution resulted in the conviction of Darowe Jones, 39, of Tulsa, on October 24, 2018, for conspiracy to distribute more than 100 grams of heroin, as well as other drugs, in the greater Tulsa area. Jones was arrested as part of Operation Alpha, a two-month operation to find and arrest some of Tulsa’s most violent and active criminals. Another opioid related case in the Northern District of Oklahoma included the successful prosecution of Jennifer Boyce, Michael Miers, and Christina Dempsey in 2018, who conspired to sell oxycodone pills which resulted in the death of a woman in Mayes County.
The DEA’s 2018 National Drug Threat Assessment findings included:
- Controlled prescription drugs remain responsible for the largest number of overdose deaths of any illicit drug class since 2001. These drugs are the second most commonly abused substance. Traffickers are now disguising other opioids as controlled prescription drugs to gain access to this market. (pages 1-10)
- Heroin-related drug-poisoning deaths almost doubled between 2013 and 2016. This has been exacerbated by the increased adulteration of heroin with fentanyl and other synthetic opioids. Heroin available in U.S. markets is primarily sourced from Mexico, where opium poppy cultivation and heroin production have both increased significantly in recent years. (pages 11-20)
- Of all opioids, the abuse of illicit fentanyl and other synthetic opioids has led to the greatest number of deaths in the United States. Fentanyl is increasingly available in the form of counterfeit prescription pills marketed for illicit street sales, and also sold by traffickers on its own, without the presence of other drugs. (pages 21-37)
- Mexican transnational criminal organizations, including the Sinaloa Cartel and Jalisco New Generation Cartel, remain the greatest criminal drug threat in the United States. The cartels are the principal wholesale drug sources for domestic gangs responsible for street-level distribution. (pages 97-99)
- National and neighborhood-based street gangs and prison gangs continue to dominate the market for the street sales and distribution of illicit drugs in their respective territories throughout the country. Drug trafficking remains the major income source for gangs. (pages 107-121)
Illicit drugs, as well as the transnational and domestic criminal organizations that traffic them, continue to represent significant threats to public health, law enforcement, and national security in the United States. In 2016, approximately 174 people died every day from drug poisoning, outnumbering deaths by firearms, motor vehicle crashes, suicide and homicide. The opioid threat – including controlled prescription drugs, fentanyl and other synthetic opioids, and heroin – has had a devastating effect on our country.
In 2017, synthetic opioids such as fentanyl were involved in nearly 30,000 deaths, and from 2016-2017, Mexican heroin production grew by 37 percent. Mexican cartels continue to make large quantities of cheap methamphetamine and deliver it to the United States through the Southern border. Seizures at the border increased from 8,900 pounds in 2010 to nearly 82,000 pounds thus far in 2018.
New enforcement priorities and programs implemented by the Justice Department and DEA will positively impact our communities and ultimately save American lives. The Department of Justice has aggressively targeted the opioid crisis through robust manpower and funding, enabling federal law enforcement agencies like the DEA to conduct enforcement operations that target anyone violating the Controlled Substance Act.
In the past year, the Justice Department and DEA have engaged in new projects and initiatives to combat this scourge. DOJ and DEA established Operation Synthetic Opioid Surge, a new program seeking to reduce the supply of deadly synthetic opioids in high-impact areas and identify wholesale distribution networks and suppliers, both domestic and international; added additional heroin enforcement task forces; brought the indictments of two Chinese fentanyl traffickers, Jian Zhang and Xiaobing Yan; extradited Mexican drug traffickers; reduced the aggregate production quota; emergency scheduled all forms of illicit fentanyl; assigned special federal prosecutors to prosecute opioid-related investigations; authorized the hiring of more than 400 additional task force officers; and continue to work with the Chinese Government resulting in further controls being placed on fentanyl analogs, and related substances.
This month, the Justice Department announced new measures to dismantle transnational criminal organizations. The creation of a Transnational Organized Crime Task Force of prosecutors will coordinate the DOJ’s efforts to fight transnational organized crime. The task force will focus on top transnational organized crime threats that include MS-13, Cartel de Jalisco Nueva Generacion, the Sinaloa Cartel, Clan del Golfo and Lebanese Hezbollah, a majority of which are included in DEA’s National Drug Threat Assessment.
The National Drug Threat Assessment provides a yearly assessment of the many challenges local communities face related to drug abuse and drug trafficking. Highlights in the report include usage and trafficking trends for drugs such as prescription drugs, heroin, methamphetamine, cocaine, marijuana and the hundreds of synthetic drugs.
The assessment factors in information from many data sources such as drug seizures, drug purity, laboratory analyses, information on the involvement of organized criminal groups and data provided to DEA by state and local law enforcement agencies across the country.
The National Drug Threat Assessment can be accessed here.
Civil Settlement Reached with Kiewit Constructors Inc.Read the Press Release
NEWARK, N.J. – A Delaware corporation headquartered in Woodcliff Lake, New Jersey, will pay $1.87 million to resolve allegations that it improperly reported Disadvantaged Business Enterprise (DBE) participation on government contracts, U.S. Attorney Craig Carpenito announced today.
On Aug. 25, 2009, Kiewit Constructors Inc. entered into a contract with the Long Island Rail Road (LIRR) to design and implement Phase II of the Atlantic Avenue Viaduct Rehabilitation Project. The Atlantic Avenue Viaduct is an approximately 1.5 mile long bridge connecting Jamaica, New York, with Brooklyn, New York. Kiewit’s work on the project, which was partially funded by federal funds, included furnishing and installing new steel girders and spans, along with related steelwork.
Because of the federal funds used on the project, the LIRR was required to establish a program requiring its contractors to subcontract with DBEs and establish DBE goals to ensure that contractors make “good faith efforts” to achieve those goals. Kiewit subcontracted with Iron Eagle Construction Corp., an established steel erection company certified as a DBE by the State of New York, to furnish and install steel spans.
The settlement resolves allegations that Kiewit failed to meet its DBE obligations under its contract with the LIRR. Under the subcontract, Iron Eagle was obligated to manage the steel fabrication process, conduct inspections, and coordinate steel delivery schedules. The United States contends that Iron Eagle did not perform a commercially useful function for the furnishing of steel spans under the DBE subcontract, in that it did not sufficiently manage the steel fabrication process, conduct necessary inspections, or coordinate steel delivery schedules. The United States asserts that Kiewit did not take contractually mandated steps to address Iron Eagle’s failure to perform a commercially useful function, and that it failed to meet its DBE obligations under the Contract.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Transportation, Office of the Inspector General, under the direction of Inspector General Calvin L. Scovell III; special agents of the Port Authority of New York and New Jersey, Office of Inspector General, under the direction of Inspector General Michael Nestor; and special agents of the Metropolitan Transportation Authority, Office of Inspector General, under the direction of Inspector General Barry L. Kluger, with the investigation.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Civil Division in Newark, and David E. Dauenheimer, Deputy Chief of the U.S. Attorney's Civil Division in Newark.
Defense counsel: Frederick M. Levy Esq., Washington, D.C.
Chinese National Allegedly Exported Devices with Military Applications to ChinaRead the Press Release
BOSTON – Additional charges were filed on Tuesday, Oct. 30, 2018, against a Chinese national in connection with violating export laws by conspiring with, among others, employees of an entity affiliated with the People’s Liberation Army (PLA) in China to illegally export U.S. origin goods to China.
Shuren Qin, a Chinese national residing in Wellesley, was charged in a superseding indictment yesterday with conspiracy to defraud the United States, smuggling, money laundering and making false statements to government officials. These charges are in addition to previous charges filed, including conspiracy to commit export violations, visa fraud, and conspiracy to defraud the United States. Qin was released on conditions pending trial.
According to court documents, Qin was born in the People’s Republic of China and became a lawful permanent resident of the United States in 2014. Qin operates several companies in China, including a company called LinkOcean Technologies, which imports goods and technology with underwater and marine applications to China from the United States, Canada and Europe. The indictment alleges that Qin communicated with and received taskings from entities affiliated with the PLA, including Northwestern Polytechnical University (NWPU), a Chinese military research institute, to obtain items used for anti-submarine warfare. In 2001, the Department of Commerce designated NWPU on its Entity List because of the national security risks NWPU poses to the United States. As described in the indictment, NWPU has worked closely with the PLA on the advancement of its military capabilities.
Between approximately July 2015 and December 2016, it is alleged that Qin exported at least 60 hydrophones (devices used to detect and monitor sound underwater) from the United States to NWPU without obtaining the required export licenses from the Department of Commerce. Qin and his company, LinkOcean, did so by concealing from the U.S. manufacturer of the hydrophones that NWPU was the true end-user and by causing false end-user information to be filed with the U.S. Government. In addition, on four separate occasions in connection with the export of hydrophones to NWPU, Qin allegedly engaged in money laundering by transferring or causing the transfer of more than $100,000 from Chinese bank accounts to bank accounts located in the United States with the intent to promote and facilitate his unlawful export scheme.
In 2014, it is alleged that Qin engaged in visa fraud in connection with his application to become a lawful permanent U.S. resident by falsely certifying that he was not seeking to “engage in export control violations or other unlawful activity” when, in fact, he engaged in numerous violations of U.S. export laws between 2012 and 2018 both in China and in the United States. Qin has also been charged with making false statements to government agents on two occasions regarding LinkOcean’s customers and its export activities. Specifically, the indictment alleges that during an interview with Customs and Boarder Protection (CBP) Officers in November 2017, Qin stated that he only exported instruments that attach to a buoy. However, Qin allegedly exported remotely-operated side scan sonar systems, unmanned underwater vehicles, unmanned surface vehicles, robotic boats, and hydrophones. The items that Qin failed to disclose to, and concealed from, CBP during this interview have military applications, and several of these items were delivered to military end-users in China. For instance, Qin exported a U.S.-manufactured remotely-operated side scan sonar system to a PLA Troop in November 2015. Qin also lied to investigators during an interview on or about June 21, 2018, when he stated that he did not have any customers on the Department of Commerce’s Entity List. In fact, the indictment alleges that Qin and LinkOcean had at least two such customers.
The charge of conspiring to violate U.S. export laws provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $1 million. The charge of visa fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiring to defraud the United States provides for a sentence of no greater than five years in prison, three years of supervised release, and a $250,000 fine. The charge of making false statements provides for a sentence of no greater five years in prison, three years of supervised release, and a $250,000 fine. The charge or money laundering provides for a sentence of no greater than 20 years in prison, five years of supervised release, and a $500,000 fine. The charge of smuggling provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Peter C. Fitzhugh, Special Agent in Charge of the Homeland Security Investigation, Boston Field Office; Leigh Alistair-Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; William Higgins, Acting Special Agent in Charge of the Department of Commerce, Office of Export Enforcement, Boston Field Office; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Leo Lamont, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office made the announcement today. Assistant U.S. Attorney B. Stephanie Siegmann, Chief of Lelling’s National Security Unit, and Assistant U.S. Attorney Jason Casey, also of National Security Unit, are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chambersburg Man Sentenced to 10 Years’ Imprisonment for Sex Trafficking A MinorRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Keanu Davone Martinez, age 22, of Chambersburg, Pennsylvania, was sentenced on November 1, 2018, by Chief U.S. District Court Judge Christopher C. Conner to 10 years’ imprisonment for transporting a minor for the purposes of committing commercial sex acts.
According to United States Attorney David J. Freed, Martinez and his co-conspirators recruited and transported victims of sex trafficking, girls between the ages of 14 and 24 years old, to engage in commercial sex acts in Pennsylvania, Maryland, Virginia, West Virginia, Florida, Rhode Island, New York and the District of Columbia. In furtherance of these crimes, Martinez and the others rented hotel rooms and posted advertisements and photographs on backpage.com from July 2012 through January 2015. Martinez, Albert Martinez, Anthony D’Ambrosio and the others would keep the majority of the money made during the course of the prostitution business, and distributed various drugs to the victims, including oxycodone, cocaine hydrochloride and heroin.
On December 5, 2017, Martinez pleaded guilty to transporting a minor for the purposes of committing commercial sex acts. Albert E. “Pipo” Martinez, age 36, of Chambersburg, Pennsylvania previously pleaded guilty to all sex trafficking and drug trafficking offenses in the superseding indictment. On March 12, 2018, Chief Judge Conner sentenced Albert Martinez to 180 months’ imprisonment followed by 10 years of supervised release. Brandon Hill, age 30, of Harrisburg, Pennsylvania received a sentence of 37 months’ imprisonment after pleading guilty to the drug trafficking offense.
A jury in Harrisburg, Pennsylvania convicted Anthony “Tony” D’Ambrosio, age 36, of Chambersburg, Pennsylvania, and Armando Delgado, age 22, of Chambersburg, Pennsylvania, of various sex trafficking and drug trafficking offenses on December 18, 2017. A sentencing date has not yet been set for these defendants, but they have been detained since the jury returned guilty verdicts.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Meredith A. Taylor is prosecuting the case.
If the case involves the sexual exploitation of children, include this: This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Cambria County Investment Advisor Pleads Guilty in $4.5M Fraud SchemeRead the Press Release
JOHNSTOWN, Pa. – A resident of Lilly, Pa., pleaded guilty in federal court to charges of securities fraud, wire fraud, and filing false income tax returns, United States Attorney Scott W. Brady announced today.
Douglas P. Simanski, 53, pleaded guilty to five counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the United States presented information to the Court that established that between February 2002 and May 2016, Simanski, an investment advisor and broker, devised and executed a scheme to fraudulently obtain approximately $4.5 million from various investors. As part of his scheme, Simanski fabricated "Tax Free Investment" contracts and "fake CDs" which listed guaranteed rates of return and payouts, and used the documents to solicit investors. Simanski used portions of the invested funds to pay "returns" to other investors to make it appear their investments were legitimate. He also used a portion of the funds to purchase personal items and to fund personal home improvement projects, and placed some of the funds into a personal E*Trade account. The United States also presented information to the Court that Simanski filed false income tax returns for 2012, 2013, and 2014.
Judge Gibson scheduled sentencing for April 4, 2019, at 10:00 a.m. The law provides for a maximum total sentence of 49 years in prison, a fine of $6,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Internal Revenue Service Criminal Investigation and the United States Secret Service conducted the investigation that led to the prosecution of Simanski.
California Realtor Sentenced to Prison for Filing a False Tax ReturnRead the Press Release
A Santa Rosa, California, real estate salesperson was sentenced to 24 months in prison yesterday for filing a false income tax return that did not report income earned from the sale of marijuana, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Alex G. Tse of the Northern District of California.
According to court documents, Charles T. Woods, from 2012 to 2014, deposited more than $1 million dollars in cash earned from his marijuana distribution business into over 25 bank accounts he controlled. Woods hid this income from his tax return preparers by providing them with incomplete financial information, which in turn caused the filing of false tax returns for tax years 2012, 2013, and 2014. The total tax loss caused by Woods’ conduct was over $450,000.
In addition to the term of imprisonment imposed, Woods was ordered to serve one year of supervised release and pay $466,707 in restitution to the Internal Revenue Service.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Tse commended special agents of IRS-Criminal Investigation, who investigated the case, as well as Tax Division Trial Attorney Christopher Magnani and Assistant U.S. Attorney José A. Olivera, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Businessman Pleads Guilty to Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A local businessman pleaded guilty today to charges of orchestrating a multi-year investment fraud scheme causing at least hundreds of thousands of dollars in losses to dozens of victims.
According to the statement of facts filed with the plea agreement, Amrit Jaswant Singh Chahal, 30, of Fairfax, operated an investment fraud scheme through The Kane Capital Investment Group, LLC (Kane Capital), a company he established and operated. Chahal executed this fraud through falsely representing that Kane Capital had earned returns of roughly 28 to 34 percent annually, when in fact, Chahal had suffered substantial losses in managing investors’ funds. Chahal also created falsified brokerage statements to conceal the losses he had sustained and siphoned off some of his investors’ funds by transferring the money to accounts he controlled or by spending the funds on personal items. When investors asked for returns on their investment, Chahal frequently used money from newer investors to pay disbursements to older investors, without disclosing this fact to his investors.
Chahal pleaded guilty to one count of wire fraud and one count of securities and commodities fraud and faces a maximum penalty of 20 years in prison on the wire fraud count and 25 years in prison on the securities and commodities fraud count when sentenced on Feb. 8, 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorneys Matthew Burke and Jamar K. Walker are prosecuting the case.
The Virginia State Corporation Commission provided significant assistance with this investigation.
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-152.
Businessman Pleads Guilty to Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A local businessman pleaded guilty today to charges of orchestrating a multi-year investment fraud scheme causing at least hundreds of thousands of dollars in losses to dozens of victims.
According to the statement of facts filed with the plea agreement, Amrit Jaswant Singh Chahal, 30, of Fairfax, operated an investment fraud scheme through The Kane Capital Investment Group, LLC (Kane Capital), a company he established and operated. Chahal executed this fraud through falsely representing that Kane Capital had earned returns of roughly 28 to 34 percent annually, when in fact, Chahal had suffered substantial losses in managing investors’ funds. Chahal also created falsified brokerage statements to conceal the losses he had sustained and siphoned off some of his investors’ funds by transferring the money to accounts he controlled or by spending the funds on personal items. When investors asked for returns on their investment, Chahal frequently used money from newer investors to pay disbursements to older investors, without disclosing this fact to his investors.
Chahal pleaded guilty to one count of wire fraud and one count of securities and commodities fraud and faces a maximum penalty of 20 years in prison on the wire fraud count and 25 years in prison on the securities and commodities fraud count when sentenced on Feb. 8, 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorneys Matthew Burke and Jamar K. Walker are prosecuting the case.
The Virginia State Corporation Commission provided significant assistance with this investigation.
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-152.
Bronx Tax Preparer Convicted at Trial for Aggravated Identity Theft and Tax FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that REBECCA BAYUO, a Bronx tax preparer, was convicted in Manhattan federal court yesterday of preparing false tax returns on behalf of her clients, filing false tax returns in the names of victims whose identities she had previously stolen, and filing false tax returns on her own behalf. BAYUO was convicted after a two-and-half week jury trial before U.S. District Judge John G. Koeltl.
U.S. Attorney Geoffrey S. Berman stated: “Rebecca Bayuo now stands convicted of multiple counts of tax fraud after she abused her position of trust as a tax preparer by systematically violating the nation’s income tax laws. By repeatedly filing fraudulent tax returns for her clients, including using stolen identities to increase tax refunds, Bayuo stole tens of thousands of dollars directly from the U.S. Treasury. For these egregious crimes, Bayuo now faces significant time in federal prison.”
According to the allegations contained in the Complaint, Indictment, and the evidence presented at trial:
BAYUO owned and operated Breakthrough Insurance Brokerage, a tax preparation business, located in the Bronx, New York. From 2010 through 2014, BAYUO used stolen identifying information of victims to file fraudulent federal income tax returns, which generated tax refunds to which BAYUO was not entitled. Specifically, BAYUO repeatedly used stolen identities of dozens of victims, including 11 New York residents who testified at trial, to file false tax returns and unlawfully collect tax refunds from the Internal Revenue Service (“IRS”) in their names for herself. As a result of BAYUO’s criminal conduct, many of the victims were unable to file tax returns as required by law, and were deprived of tax refunds to which they were entitled.
In addition, from 2011 through 2012, BAYUO prepared and submitted to the IRS fraudulent tax returns for her clients that resulted in increased tax refunds, to which her clients were not entitled. Among other things, BAYUO charged her clients an additional fee in exchange for providing them with the stolen identities of children as false “dependents” to claim on their tax returns. BAYUO recycled the same stolen identities as false “dependents” for numerous tax returns, over at least a four-year time period.
Finally, from 2014 to 2015, BAYUO filed false personal income tax returns in her own name, and included in those filings personal identifying information belonging to other individuals that she had stolen. Specifically, on her own tax returns, BAYUO included false “dependents,” whose identities she had stolen, in order to obtain a larger tax refund to which she was not entitled. Three of the victims of this scheme testified at trial.
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BAYUO, 48, of the Bronx, New York, was convicted of 12 counts of aiding and assisting the preparation of false tax returns, each of which carries a maximum sentence of three years in prison; one count of theft of government funds, which carries a maximum sentence of 10 years in prison; one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison; and two counts of subscribing to false tax returns, each of which carries a maximum sentence of three years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
BAYUO is scheduled to be sentenced on April 12, 2019, at 10:00 a.m.
Mr. Berman praised the outstanding investigative work of the IRS. The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Mollie Bracewell, Cecilia Vogel, and Sarah E. Paul are in charge of the prosecution.
Brockton Man Charged with Federal Firearm OffenseRead the Press Release
BOSTON – A Brockton man was arrested today and charged in federal court in Boston with illegally possessing a firearm and ammunition.
Dwayne Leaston-Brown, 28, was indicted on one count of being a felon in possession of a firearm and ammunition. He appeared before U.S. District Court Magistrate Judge Donald L. Cabell today and was ordered detained pending a detention hearing.
According to the indictment unsealed today, on Sept. 8, 2018, Leaston-Brown, who was previously convicted of a felony, possessed a Kahr Arms CM9 9mm semi-automatic pistol and six Luger 9mm cartridge while in Boston.
The charge provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Lawrence Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; and Boston Police Commissioner William Gross made the announcement today.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Bridgeport Man Charged with Child Exploitation OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, announced that JOSE MANUEL SANTOS, 36, of Bridgeport, was arrested today on a federal criminal complaint charging him with transfer of obscene materials to a minor, and enticement of a minor to engage in illegal sexual activity.
As alleged in the complaint, earlier this week, law enforcement received information that Santos, a school bus/van driver, was sexually soliciting a 13-year-old girl who was a passenger on his route. The mother of the minor victim provided the victim’s cell phone to investigators. Preliminary analysis of the cell phone revealed a sexually explicit photo of Santos that Santos sent to the minor victim, and text messages from Santos, including a text message asking the minor victim to send him a sexually explicit photo of her.
Santos appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and is detained.
The charge of transfer of obscene materials to a minor carries a maximum term of imprisonment of 10 years. Enticement of a minor to engage in sexual activity carries a mandatory minimum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations (HSI) and is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Boston Man Indicted on Escape ChargeRead the Press Release
BOSTON - A Boston man was indicted yesterday in federal court in Boston in connection with escaping from a residential re-entry center where he was finishing the remainder of a 100 month sentence.
James Jones, 44, was indicted on one count of escape and was originally charged by criminal complaint in October 2018.
According to court documents, in April 2012, Jones was sentenced in federal court in Boston to 100 months in prison for drug convictions. On March 7, 2018, Jones was transferred from a correctional institution to a residential re-entry center to serve the remainder of his sentence. On July 10, 2018, Jones signed out of the re-entry center on an approved overnight work pass and was scheduled to return on July 11, 2018, but he failed to return.
The charging statute provides for a mandatory minimum sentence of five years in prison, up to three years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit 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.
Beaver County Man Charged with Possessing Child Porn VideosRead the Press Release
PITTSBURGH - A resident of Rochester, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on October 30, named Elijah Winchester, 21, as the sole defendant.
According to the indictment, on or about May 21, 2018, Winchester possessed videos depicting a minor engaged in sexually explicit conduct.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Western Pennsylvania Violent Crimes Against Children Task Force, the Beaver Police Department and the Beaver County District Attorney’s Office conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Attorney General Sessions Issues Statement on Judicial Ruling Declaring California Senate Bill 50 UnconstitutionalRead the Press Release
Today, Attorney General Jeff Sessions issued the following statement regarding the court’s ruling in the Eastern District of California declaring California Senate Bill 50 (SB 50) unconstitutional:
“The court’s ruling is a firm rejection of California’s assertion that, by legislation, it could dictate how and when the federal government sells federal land. This was a stunning assertion of constitutional power by California, and it was properly and promptly dismissed by the district judge. It is unfortunate that, in the interim, California forced both the Justice Department and the court to spend valuable time and resources to dispose of its baseless position.
“This is the third time in the last few months that a federal court has struck down as unconstitutional all or parts of a law that California designed to frustrate federal law. This trend is concerning, and the Department of Justice will continue to vigorously defend the rightful duties of the federal government in court, and ensure that no state, including California, subverts the enforcement of federal law.”
In April this year, the Department of Justice filed a civil action in the U.S. District Court for the Eastern District of California against the State of California, Governor of California Edmund G. “Jerry” Brown Jr., and the California State Lands Commission, seeking a declaration that California Senate Bill 50 (SB 50), enacted in October 2017, is unconstitutional and seeking an injunction against implementation of this state law. The California law purported to give a state agency the power to block the sale, donation or exchange of federal lands by the federal government to any other person or entity. SB 50 also sought to penalize (up to $5,000) any person who knowingly filed real estate records pertaining to a federal land transfer unless the California government certified that the transfer complies with state law.
The District Court for the Eastern District of California found that SB 50 interfered with the federal government's constitutional authority to convey federal land in the State of California. Under a range of federal laws, Congress has empowered federal agencies with the responsibility to determine when, to whom, for what purpose, and under what conditions federal interests in property will be conveyed. Federal conveyances serve a broad range of purposes such as supporting national defense, promoting local economic development, furthering land conservation, or otherwise providing important public benefits.
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Michael James Reed, 39, of Toomsuba, Mississippi, was sentenced to 70 months’ imprisonment for possession with intent to distribute two kilograms of cocaine and being a convicted felon in possession of a firearm. Reed pled guilty to the charges in March of this year.
United States District Court Judge William H. Steele imposed the sentence on November 1, 2018, ordering that Reed also receive drug treatment while in prison and as a condition of his four-year supervised release term when he is released. No fine was imposed, but Reed was ordered to pay $200 in special mandatory assessments.
The case was investigated by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.
Armed Defendant Located by Police in a Stolen Vehicle Receives 41 Months in Federal PrisonRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Judge William H. Steele sentenced Rex James Thompson on November 1, 2018 to serve a term of imprisonment of 41 months followed by 3 years of supervised release for being a convicted felon in possession of a firearm in violation of Title 18 USC § 922(g)(1). The defendant’s guilty plea was accepted by the Court on July 27, 2018.
On November 17, 2017, deputies from the Mobile County Sheriff’s Office responded to a call of a medical emergency. When they responded to the scene, they observed a truck in the mud on a dirt road. The deputies were also advised that there was a person “down” in the truck. Medical personnel were already on the scene assisting the vehicle occupant. The vehicle occupant was identified as the defendant, Rex James Thompson. The deputies knew the defendant to be a car thief from previous dealings and they received information that he was armed. The vehicle Thompson occupied had indeed been reported stolen the day before. The deputies arrested the defendant and located a loaded Rossi, Model 38 Special, .38 caliber revolver in his pocket during the pat down. The defendant had an extensive criminal history, which included prior convictions for Receiving Stolen Property in the First Degree, Receiving Stolen Property in the Second Degree, and Attempted Burglary in the Second Degree.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Mobile County Sheriff’s Office. The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDETF) Lead Attorney, Assistant United States Attorney George F. May for the United States Attorney’s Office for the Southern District of Alabama.Arizona Man Pleads Guilty to Using Scam Political Action Committees to Defraud Tens of Thousands of DonorsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that WILLIAM TIERNEY pled guilty today in Manhattan federal court to conspiring to commit wire fraud for inducing donations to six political action committees (“PACs”) he established and operated by misrepresenting the activities and expenditures of the PACs. TIERNEY was arrested and charged in connection with this scheme in May 2018, and he pled guilty today to one count of conspiracy to commit wire fraud before U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Berman said: “William Tierney admitted today that he secretly operated numerous political action committees to obtain small-dollar donations from people who believed their hard-earned money would support the causes described in solicitation calls and mailings. In reality, the PACs were political action committees in name only, contributing less than 1 percent of the money they raised to candidates for office and instead enriching the defendant, who now faces prison time for his crimes. This is the first-ever federal prosecution of fraudulent scam PACs, but it won’t be the last.”
According to the allegations set forth in the Complaint and Information filed against TIERNEY in Manhattan federal court, and statements made in public court filings and proceedings, including TIERNEY’s guilty plea hearing:
TIERNEY defrauded tens of thousands of donors to six political action committees that he established, controlled, and operated. These scam PACs were fraudulent entities operated to enrich the defendant, targeting victims across the country to raise funds on the basis of false and misleading representations. The scam PACs purported to support voter education regarding – and the political campaigns of those who supported – various causes, including autism awareness, law enforcement, and pro-life causes, including through purported “coast to coast” education and advocacy campaigns, working with local groups and organizations, and “investing every penny . . . in the big races to come.” In truth, virtually all of the money raised was either paid to TIERNEY or used to perpetuate the fraud through additional telemarketing, fundraising, and overhead expenditures. Less than 1 percent of the money obtained by the scam PACs was contributed to candidates for office.
TIERNEY perpetrated the fraud through various deceptive means and methods. For example, he created and utilized a web of shell pass-through entities to conceal and disguise the fraud. Donated funds were transferred to these shell entities, which were given names that suggested activities related to marketing, consulting, and communications efforts, including for issue-specific causes – so that payments to the shell entities would appear to be for legitimate expenditures, including when publicly disclosed in Federal Election Commission (“FEC”) filings. In at least one instance, a website was created for one of the shell entities, falsely stating that the entity provided direct marketing and political consulting services to trade associations, candidate campaigns, political action committees, and nonprofit organizations. In fact, these and the other shell entities TIERNEY created had no active operations or employees, were retained by no outside “clients,” and served only to funnel and disguise financial transactions involving money donated to certain scam PACs.
TIERNEY also instructed two companies that made telemarketing solicitation calls for certain scam PACs to create their own shell companies – which he referred to as “Stealth LLCs” – with names that concealed any connection with their parent telemarketing vendors. This prevented the FEC, donors, and other members of the public from being able to learn from required FEC disclosure forms that multiple scam PACs were in fact paying the same telemarketing vendors.
To facilitate the fraudulent scheme, TIERNEY used the fake identity of “Bill Johnson” when meeting and corresponding with officials at certain fundraising call centers. Another fake identity, “Emma Smith,” was used in fundraising solicitations, and was described as a “Volunteer Coordinator” for one of the PACs; in fact, neither Emma Smith nor the position of “Volunteer Coordinator” actually existed. TIERNEY also undertook efforts to avoid press coverage of the scam PACs more generally, despite the scam PACs’ claims in solicitation materials of national advocacy and awareness campaigns.
* * *
TIERNEY, 46, of Arizona, pled guilty to one count of conspiring to commit wire fraud, which carries a maximum sentence of five years in prison, and agreed to forfeit and pay restitution in an amount of at least $1.4 million. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as the sentence of the defendant will be determined by the court.
TIERNEY is scheduled to be sentenced by Judge Furman on February 7, 2019.
Mr. Berman praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York and of the Federal Bureau of Investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Alex Rossmiller and Alison Moe are in charge of the prosecution.
Anchorage Felon Charged for Illegal Possession of Firearms in Connection with Homicide InvestigationRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Clint Registe, 37, of Anchorage, was named in a criminal complaint charging him with felon in possession of a firearm, which stems from a July 2018 homicide investigation. Registe is in custody and is currently awaiting a court appearance before a U.S. Magistrate Judge on the federal charge.
According to the complaint affidavit, the federal charge stems from an investigation into the July 20, 2018 shooting death of Brittney Sparks. On July 20, 2018, APD responded to Registe’s Anchorage apartment, and upon the execution of a search warrant, authorities seized several firearms – one of which was a Mak-90 semi-automatic assault rifle. The complaint alleges that, after Registe was taken into custody, he admitted that he had been in possession of the Mak-90 rifle, and while handling it, it had gone off, killing Ms. Sparks.
Registe is currently facing additional charges with the State of Alaska for Manslaughter and Murder in the Second Degree, in connection with this case. He has a prior felony conviction with the State of Alaska for Assault, and was therefore prohibited from possessing a firearm.
If convicted, Registe faces a maximum sentence of up to 10 years in prison and a $250,000 fine, for the charge alleged in the complaint. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Anchorage Police Department (APD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Allison M. O’Leary.
This case was also 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.
A criminal complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Alabama Woman Indicted for Attempting to Provide Material Support and Resources to a Foreign Terrorist OrganizationRead the Press Release
BIRMINGHAM – A federal grand jury on Monday indicted a woman, who is a former resident of Alabama, with attempting to provide material support and resources to al Qaeda, a designated foreign terrorist organization, and aiding and abetting others, in violation of Title 18, United States Code, Sections 2339B and 2, announced Assistant Attorney General John Demers of the National Security Division, United States Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
According to court filings, Alaa Mohd Abusaad instructed an FBI undercover employee (UCE) about how to send money to the mujahedeen—fighters engaged in jihad. Abusaad told the UCE that money “is always needed. You can’t have a war without weapons. You can’t prepare a soldier without equipment.” Abusaad also advised the UCE on how to send money without getting caught, such as by using fake names and addresses. Subsequently, Abusaad introduced the UCE to a financial facilitator who could route the UCE’s money to “brothers that work with aq (al Qaeda).”
“Federal agents and prosecutors are working tirelessly and using every available lawful tool to disrupt the evil schemes of those who would support foreign terrorist organizations to do harm to our troops, our allies, or our homeland”, Town said. “The FBI did an excellent job investigating this matter, effectively engaging with other districts, and worked tirelessly to investigate this terrorist behavior. I would like to extend my personal gratitude to our local FBI field office, FBI-Cleveland, FBI’s Counterterrorism Division, Northern District of Ohio U.S. Attorney Justin Herdman, and the entirety of the Department of Justice’s National Security Division for their diligent and enormous efforts in developing this case. Our collective vigilance as law enforcement and in our community must resolve to continue to say something if you see something.”
The maximum penalty is 20 years in prison, up to a life term of supervised release and a $250,000 fine.
FBI, including FBI offices in Birmingham and in Cleveland and Toledo, Ohio, investigated the case, which the Assistant United States Attorneys Henry Cornelius and Manu Balachandran, and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section are prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
The complaint was announced in a press release on October 23, 2018.
Additional Defendant Charged in Insider Trading SchemeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Hamed Ettu, 44, of Richmond, TX was charged today by information with conspiracy to commit securities fraud.
According to the information, Damilare Sonoiki, charged elsewhere, then a junior analyst at a global investment bank in New York, provided material non-public information to Ettu. Sonoiki obtained this information in violation of his duty of confidentiality that he owed to the investment bank.
Relying on the material non-public information he received from Sonoiki, Ettu purchased call options in the target companies, Compuware and Move, between July and September, 2014. When the proposed merger was announced in each case, the value of Ettu’s options increased significantly. During the period of the conspiracy, Ettu made a profit of more than $93,000.
If convicted, the defendant faces a maximum possible sentence of five years’ imprisonment, a three year period of supervised release, $250,000 fine, and a $100 special assessment. Forfeiture of all proceeds from the offense also may be ordered.
The case was investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission, and is being prosecuted by Assistant United States Attorney David J. Ignall.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
1 November 2018
Washington, Pa. Felon Pleads Guilty to Illegally Possessing A Stolen Pistol and AmmunitionRead the Press Release
PITTSBURGH – A Washington County resident pleaded guilty in federal court to a charge of violating the federal firearms laws, United States Attorney Scott W. Brady announced today.
James Roosevelt Leach, age 47, of Washington, Pennsylvania, pleaded guilty to one count of possession of a firearm and ammunition by a convicted felon before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on December 14, 2016, the Pennsylvania State Police performed a traffic stop on a vehicle near the City of Washington, in Washington County. Mr. Leach, the driver and lone occupant, was found in possession of a box of 9mm caliber ammunition; underneath the driver’s seat of Mr. Leach’s vehicle, the state police seized a loaded, stolen 9mm semi-automatic Ruger pistol. Mr. Leach admitted to the state police that he bought the pistol on the street. Federal law prohibits Leach, a felon previously convicted in the Court of Common Pleas of Washington County, Pennsylvania, of crimes including rape, robbery, and aggravated assault, from possessing a firearm or ammunition.
Judge Bissoon scheduled sentencing for March 12, 2019, at 10 a.m. The law provides for a maximum total sentence of up to 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
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 Pennsylvania State Police and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the plea in this case.