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1 November 2018
United States Attorneys Announce Election Day ProgramRead the Press Release
United States Attorneys Peter Deegan and Marc Krickbaum announced today that Assistant United States Attorneys (AUSAs) Daniel Tvedt and Virginia Bruner will lead the efforts of their respective Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election. In that capacity, AUSA Tvedt and AUSA Bruner are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney for the Southern District of Iowa Krickbaum said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
United States Attorney for the Northern District of Iowa Deegan said, “Ensuring free and fair elections depends in large part on the cooperation of all members of the public. I am asking that anyone with specific information about discrimination or election fraud immediately contact my Office, the FBI, or the Civil Rights Division. We all must do our part to safeguard the integrity of our elections and protect everyone’s right to vote.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Tvedt and Bruner will be on duty while the polls are open. AUSA Tvedt can be reached by the public at the following telephone number: 319-363-6333. AUSA Bruner can be reached by the public at the following telephone number: 515-473-9300.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field offices can be reached by the public at 319-366-2461 (Cedar Rapids) or 515-223-4278 (Des Moines).
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney's Office Continues to Protect the Right to Vote and Prosecute Voter Fraud in Upcoming ElectionsRead the Press Release
United States Attorney Trent Shores announced today that Assistant United States Attorney (AUSA) Charles McLoughlin will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election. AUSA McLoughlin has been appointed to serve as the District Election Officer (DEO) for the Northern District of Oklahoma, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Trent Shores said, “The right to vote is a fundamental freedom. All voices must be heard and must be counted. Ensuring free and fair elections depends in large part on the cooperation of the American electorate, and I encourage people to come forward to report election fraud or voting rights abuses. In the Northern District of Oklahoma, my office will uphold its responsibility to protect the right to vote so that all citizens are guaranteed a voice within their communities and nationally.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election d
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Trent Shores stated that AUSA/DEO McLoughlin will be on duty in this District while the polls are open. AUSA McLoughlin can be reached by the public at the following telephone number: (918) 382-2713.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (918) 664-3300, or the public may call the FBI’s national tip line at 1-800-CALL-FBI or tips.fbi.gov.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to the U.S. Attorney's Office, the FBI, or the Civil Rights Division.
United States Attorney Harrington Appoints District Election Officer in Support of Department of Justice Election Day ProgramRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced today that Assistant United States Attorney (AUSA) Ian Garriques will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election. AUSA Garriques has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Washington; and in that capacity, he will be responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Harrington said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen or diminished because of fraud or abuse. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination during general elections, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process, by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations during voting for the November 6 election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts of intimidation or harassment. For example, actions of persons designed to interrupt or intimidate voters from submitting their ballots via mail, ballot drop box locations, or accessible voting units or centers, or by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Harrington stated that AUSA/DEO Garriques is on duty in the Eastern District of Washington. He can be reached by the public at the following telephone number: (509) 454-4425.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The appropriate FBI field office can be reached by the public at (206) 622-0460 or to https://tips.fbi.gov.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Harrington said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Union County, New Jersey, Man Sentenced to 45 Months in Prison for Interstate Theft SchemeRead the Press Release
NEWARK, N.J. – An Elizabeth, New Jersey, man was sentenced today to 45 months in prison for operating a scheme to fraudulently obtain hundreds of thousands of dollars in commercial and residential merchandise from various companies, U.S. Attorney Craig Carpenito announced.
Roy Depack, a/k/a “Ray Depack,” a/k/a “Roy Soriano,” a/k/a “John Soriano,” 44, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of conspiracy to commit mail and wire fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Beginning in 2014, Depack and others conspired to fraudulently obtain merchandise – including Apple computers, digital scales, a walk-in freezer, a snow blower, a gas backpack blower, Samsung televisions, and Milwaukee tools kits – from at least six different victim companies. Depack fraudulently obtained and attempted to obtain more than $900,000 in merchandise.
Depack called the victim companies and falsely claimed to be a representative of companies that had pre-existing business relationships, lines of credit, or accounts with the victim companies. Depack would then direct the victim companies to ship the products to various addresses in New York, Newark, Elizabeth, and Union, New Jersey, while the victims billed the companies that Depack was pretending to represent. Depack and others sold the goods to pawn stores and other individuals.
For example, on April 10, 2017, Depack, using the name “Mike Clarke” and falsely claiming to be a representative of a food distribution company, ordered one digital scale, valued at approximately $3,614, from a victim identified in the information as “Company Six,” and directed that it be delivered to Elizabeth. After the scale was delivered on April 11, 2017, Depack and another individual sold it at a pawn store in Newark for approximately $700.
In addition to the prison term, Judge Martini sentenced Depack to three years of supervised release and ordered him to pay restitution of $394,143.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation.
The government is represented by Assistant U.S. Attorney Anthony Moscato, Chief of the U.S. Attorney’s Office National Security Unit in Newark.
Defense Counsel: Dennis S. Cleary Esq., West Orange, New Jersey
USAO NDTX Weekly Roundup -- 11/01/18Read the Press Release
SENTENCING -- Tanya Scroggins
On Oct. 25, Tanya Lynn Scroggins was sentenced to 17 ½ years in federal prison for her role in a methamphetamine ring managed by white supremacists. In July, Scroggins pled guilty to one count of possession with intent to distribute, after Texas DPS agents found her with a significant amount of methamphetamine, multiple firearms, and a large amount of cash.SENTENCING – Garry Newton, 21
On Oct. 31, Garry Dewayne Newton was sentenced to just shy of 3 years in federal prison on drug and firearms charges. He was one of 15 defendants indicted in December 2017 following an ATF investigation targeting a violent Dallas street gang known as “YNB StretchGang.” After agreeing to sell meth to a customer he later learned was an uncover law enforcement officer, Newton was arrested carrying multiple drugs, drug paraphernalia, and a stolen 9mm Taurus handgun. He later pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm by a user of a controlled substance. Newton admits that he and other YNB StretchGang members sold controlled substances, including meth, cocaine, alprazolam (Xanax), and marijuana, and produced music videos glorifying violence.SENTENCING -- Shakil Mukadam
On Oct. 31, Shakil Mukadam was sentenced to more than 6 years in federal prison for robbing four Dallas banks over a two-day period in December 2017. In March, Mukadam pled guilty to one count of robbing a Wells Fargo Bank in Dallas but admitted robbing a Chase Bank and two BBVA Compass Bank locations as well. The FBI conducted the investigation.SENTENCING -- Antwan Dickerson
On Oct. 31, Antwan Dickerson was sentenced to 2 years in federal prison for firearm possession by a convicted felon. When Dallas Police Department executed a narcotics search warrant at Dickerson’s residence, they found multiple guns inside, including a shotgun that had been stolen from a federal firearms licensee. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department investigated the case.PLEA – Patricia Armstrong, 32
Patricia Armstrong of Coppell, TX pleaded guilty to conspiracy to commit health care fraud on Nov. 1. Armstrong admits to participating in a scheme to defraud Medicare and Medicaid of over $60 million by causing those programs to be billed for hospice beneficiaries who were ineligible for hospice care, were fraudulently recruited to hospice care, or who were not provided billed-for services. She now faces up to 10 years in prison and a fine of up to $250,000. The FBI, HHS-OIG, and MFCU investigated.SENTENCING – Yousef Hendi, 26
On Nov. 1, Yousef Hendi was sentenced to 40 years’ imprisonment after pleading guilty to multiple counts of sexual exploitation of children. Hendi, a Palestinian national, coerced more than 34 minors, many of them inside the U.S., into sending sexually explicit images and videos. (Investigators have identified 19 of those victims thus far.) Hendi found a number of his victims by impersonating a female and joining an online, teen-only group, where he would challenge members to prove they were really female. Once Hendi had obtained a nude image of the minor, he would then threaten and coerce her into sending additional sexually explicit images and videos. HSI conducted the investigation.USA Erin Nealy Cox Appointed to AG’s China InitiativeRead the Press Release
Attorney General Jeff Sessions today appointed U.S. Attorney for the Northern District of Texas Erin Nealy Cox – along with four other U.S. Attorneys, from New York, California, Alabama and Massachusetts – to serve on the Justice Department’s China Initiative combating economic espionage by Beijing.
This group is led by Assistant Attorney General for National Security John Demers and composed of five U.S. Attorneys and several other Department of Justice leaders, including senior FBI officials and Assistant Attorney General Brian Benczkowski of the Criminal Division.
The new initiative will aggressively pursue high-priority Chinese theft of trade secret and economic espionage cases.
“We cannot and will not allow foreign actors to take advantage of American ingenuity to line their own pockets,” said Nealy Cox. “I am proud to join this important effort and look forward to advancing the China initiative with my DOJ colleagues across the country.”
As the Attorney General noted at a press conference in Washington, DC this afternoon, despite China’s public commitment that it would not target American companies for economic gain, Chinese economic espionage against the United States has been rapidly increasing.
“Discoveries that took years of work and millions of dollars in investment here in the United States can be stolen by computer hackers or carried out the door by an employee in a matter of minutes,” Sessions said today. “Enough is enough.”
Initiative Goals:
• Identify priority trade secret theft cases, ensure that investigations are adequately resourced, and work to bring them to fruition in a timely manner
• Develop an enforcement strategy concerning non-traditional collectors (e.g., researchers in labs, universities, and the defense industrial base) that are being coopted into transferring technology contrary to U.S. interests
• Educate colleges and universities about potential threats to academic freedom and open discourse from influence efforts on campus
• Apply the Foreign Agents Registration Act to unregistered agents seeking to advance China’s political agenda, bringing enforcement actions when appropriate
• Equip the nation’s U.S. Attorneys with intelligence and materials they can use to raise awareness of these threats within their Districts and support their outreach efforts
• Implement the Foreign Investment Risk Review Modernization Act (FIRMA) for DOJ (including by working with Treasury to develop regulations under the statute and prepare for increased workflow)
• Identify opportunities to better address supply chain threats, especially ones impacting the telecommunications sector, prior to the transition to 5G networks
• Identify Foreign Corrupt Practices Act (FCPA) cases involving Chinese companies that compete with American businesses
• Increase efforts to improve Chinese responses to requests under the Mutual Legal Assistance Agreement (MLAA) with the United States
• Evaluate whether additional legislative and administrative authorities are required to protect our national assets from foreign economic aggression
US Attorneys in Working Group:
• Erin Nealy Cox (Northern District of Texas)
• Richard P. Donoghue (Eastern District of New York)
• Andrew E. Lelling (District of Massachusetts)
• Jay E. Town (Northern District of Alabama)
• Alex G. Tse (Northern District of California)
U.S. District Court Appoints John C. Milhiser U.S. Attorney for the Central District of IllinoisRead the Press Release
SPRINGFIELD, Ill. -- The U.S. District Court for the Central District of Illinois has appointed John C. Milhiser as U.S. Attorney for the Central District of Illinois pending his confirmation by the U.S. Senate. Mr. Milhiser began his new duties effective Oct. 31, 2018.
President Donald Trump nominated Mr. Milhiser in August 2018.
Mr. Milhiser, 48, served as the Sangamon County State’s Attorney since 2010. He began his legal career as an Assistant State’s Attorney in the office in 1997. After holding positions in the juvenile, civil and felony divisions, Mr. Milhiser entered private practice in 2003. He returned to the Sangamon County State’s Attorney’s Office in 2008 as the First Assistant State’s Attorney.
Mr. Milhiser served as the president of the Illinois State’s Attorneys Association from December 2017 until his appointment as U.S. Attorney. A proponent for specialized courts, Mr. Milhiser worked to establish a drug court, mental health court and veterans court during his tenure as State’s Attorney. A strong advocate for victims, Mr. Milhiser implemented a courthouse facility dog to assist victims of violent crime and sexual abuse.
Mr. Milhiser received his law degree in 1997 from the University of Illinois College of Law.
U.S. Attorney’s Office Reminds Pennsylvania Voters about Election Day Hotline for Complaints Concerning Voting Irregularities and AbusesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Assistant U.S. Attorney Richard P. Barrett will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming general election on November 6, 2018. AUSA Barrett has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Pennsylvania, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with the Department of Justice in Washington D.C.
“Ensuring the fairness and stability of the election process is paramount to our democracy,” said U.S. Attorney McSwain. “Every citizen must be able to vote without interference or discrimination. Every vote must be recorded fairly and accurately. My Office and the Department of Justice will act promptly and aggressively to protect the integrity of the election process. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls. The Department’s long-standing Election Day Program furthers these goals by ensuring public confidence in the integrity of the election process and by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions designed to interrupt or intimidate voters at polling places (such as photographing or videotaping them under the pretext that these are actions to uncover illegal voting) may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice where voters need assistance because of disability or illiteracy.
In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, U.S. Attorney McSwain stated that AUSA Barrett will be on duty in this District while the polls are open. AUSA Barrett can be reached by the public at (215) 861-8420.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (215) 418-4000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
U.S. Attorney Liu Announces Appointment of Election Day OfficerRead the Press Release
WASHINGTON - U.S. Attorney Jessie K. Liu today announced the appointment of Assistant U.S. Attorney Derrick Williams to lead the efforts of the U.S. Attorney’s Office for the District of Columbia in connection with the Justice Department’s nationwide Election Day program for the Nov. 6, 2018 general election.
Assistant U.S. Attorney Williams, a prosecutor in the Office’s Fraud and Public Corruption Section, will serve as the District Election Officer for the District of Columbia. In that capacity, he is responsible for overseeing the handling of complaints of election fraud and voting rights abuses in the District of Columbia, in consultation with Justice Department headquarters.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses, and to ensure that such complaints are directed to the appropriate authorities, Assistant U.S. Attorney Williams will be on duty in the District of Columbia while the polls are open. Assistant U.S. Attorney Williams can be reached by the public at 202-252-7898.
Nationally, the FBI has Special Agents in each Field Office and Resident Agency throughout the country to receive allegations of election fraud and other election abuses. In the District of Columbia, the FBI’s Washington Field Office can be reached at 202-278-2000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
U.S. Attorney Glassman Appoints District Election OfficersRead the Press Release
COLUMBUS, Ohio – United States Attorney Benjamin C. Glassman announced today that he has designated Election Officers in each of the district’s three offices who will lead the efforts in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general elections.
Glassman appointed:
Deputy Criminal Chief Gary Spartis in Columbus,
Deputy Criminal Chief Emily Glatfelter in Cincinnati,
Deputy Criminal Chief Laura Clemmens in Dayton.
As District Election Officers, they are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Glassman said, “Every citizen must be able to vote without interference or discrimination. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Glassman stated that the District Election Officers will be on duty in this District while the polls are open.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field offices can be reached by the public at 513 421-4310.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Complaints related to violence, threats of violence or intimidation at a polling place should be reported first to local law enforcement by calling 911.
United States Attorney Glassman said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
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U.S. Attorney Fajardo Orshan Encourages the Public to Report Election Fraud and Voting Rights AbusesRead the Press Release
U.S. Attorney Ariana Fajardo Orshan announced today that Assistant U.S. Attorney (AUSA) Harry Wallace will lead the efforts of U.S. Attorney’s Office for the Southern District of Florida in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general elections. AUSA Wallace has been appointed to serve as the District Election Officer (DEO) for the Southern District of Florida and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington, D.C.
“Every citizen has the right to vote without interference or discrimination and to have that vote counted,” said U.S. Attorney Fajardo Oshan. “The U.S. Attorney’s Office, Department of Justice and our FBI partners are committed to protecting the integrity of the election process. Anyone with information regarding voter fraud or election abuses is encouraged to immediately contact our local FBI Elections Crime Coordinator or District Election Officer Harry Wallace.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to complete their own ballot or to be assisted by a person of their choice.
The right to vote is the cornerstone of American democracy. We all must ensure that those who are entitled to vote exercise that right if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, an Election Crimes Coordinator (ECC) of the FBI’s Miami field office and Southern District of Florida District Election Officer AUSA Harry Wallace will be on duty while the polls are open on Election Day to receive allegations of election fraud and other election abuses. If the public has any concerns regarding possible election fraud or voting rights abuses, they are encouraged to directly contact FBI ECC at (754) 703-2000 or AUSA/DEO Wallace at (305) 961-9401.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (754) 703-2000.
Complaints about possible violations of the federal voting rights laws can also be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1 (800) 253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
U.S. Attorney Announces Office Collects over $13.6 MillionRead the Press Release
BOISE – United States Attorney Bart M. Davis announced today that his office’s Financial Litigation Unit collected more than $11.17 million in criminal restitution, fines, and assessments and in civil debts for the fiscal year that ended September 30, 2018. In some cases, the U.S. Attorney’s Office worked in conjunction with litigating components of the U.S. Department of Justice. Of the total collected, approximately $1,923,373 were criminal restitution, fines, and/or assessments, and approximately $9,251,990 were civil debts. In addition, the Asset Forfeiture Unit collected approximately $2,502,374 in proceeds and instruments of crime in criminal and civil forfeiture actions.
“The more than $13.6 million our staff collected for criminal restitution, fines, assessments, civil debts, and asset forfeiture exceeds the U.S. Attorney's Office’s annual operational budget,” said Davis. “Our collection and asset forfeiture staff of attorneys, paralegals, analysts, and fiscal agents ensure that those who have caused loss to victims pay those victims back and ensure that those who have profited from committing crimes in the District of Idaho are deprived of the proceeds and tools of their crimes. These same folks also ensure that those who owe the federal government money, as a result of litigation in this District or as a result of longtime debt, make appropriate payments. This year, all of these dedicated individuals have done outstanding work and served this office, the taxpayers, and this community well,” Davis concluded.
Victims of crime receive funds collected in criminal restitution cases. In fiscal year 2018, the U.S. Attorney’s Office, through the Financial Litigation Unit, collected over $1.77 million in criminal restitution that was distributed to victims of crime. Other criminal collections such as fines go into the Crime Victims Fund. From there, funds are distributed to the Idaho Crime Victims Compensation Program, the Idaho Council on Domestic Violence and Victim Assistance, and similar programs across the country. Money recovered from the illegal proceeds of criminal activity through forfeiture is returned to victims, used to offset the costs of operating federal prisons, and shared with local, state, and federal law enforcement agencies to help fight crime. Other recoveries go back to agency creditors.
During the fiscal year, some notable criminal restitution collections include approximately $508,000 paid by the defendant in a failure to pay taxes case and over $267,000 collected from assets of a defendant in a wire fraud case. In addition, various homes were sold by defendants to partially or completely satisfy their restitution obligations. The Treasury Offset Program helped collect over $200,000 toward restitution debt.
Notable recoveries of the proceeds of crime through asset forfeiture include forfeitures of currency, vehicles, and real property seized as proceeds and facilitating property of drug trafficking and fraud. These included real properties in Caldwell, Nampa, Buhl and Washington State. Significant forfeitures included the sale of agricultural land in Buhl, Idaho, in United States v Saul, an organic seed fraud case; the sale of a residence in Nampa, Idaho in United States v. Wilfong, a methamphetamine distribution case; and the forfeiture of cash and other property in United States v. Toelle, a North Idaho oxycodone distribution case. Additionally, the Asset Forfeiture Unit used civil forfeiture to assist two Idaho companies to recover several hundred thousand dollars stolen in email fraud schemes. In some cases, the United States shared, or will share, seized money and property with local investigating agencies.
As for civil debts and penalties, the Financial Litigation Unit collects civil penalties for violations of regulations involving, among other things, controlled substances, environmental protection, damage to federal property, and procurement fraud. It also collects civil debts for defaulted loans.
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U.S. Attorney Announces November 2018 Election OfficerRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Assistant United States Attorney Rebecca Weber will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election. AUSA Weber has been appointed to serve as the District Election Officer for the District of Colorado, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Dunn said, “Every Coloradan must be able to vote without interference, discrimination, or fear of having their vote stolen, and to know that their vote will be counted. The Colorado U.S. Attorney’s Office will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Dunn stated that AUSA Weber will be on duty in this District while the polls are open. She can be reached by the public at the following telephone number: 303-454-0332.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 303-629-7171.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Dunn said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my office, the FBI, or the Civil Rights Division.”
U.S. Attorney Announcement on 2018 Midterm Elections - RichmondRead the Press Release
RICHMOND, Va. – United States Attorney G. Zachary Terwilliger announced today that Assistant U.S. Attorney David T. Maguire will lead the efforts here in connection with the Justice Department’s nationwide Election Day Program for the upcoming midterm elections on November 6.
Maguire has been appointed to serve as the District Election Officer (DEO) for the Richmond Division of the Eastern District of Virginia, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” said Terwilliger. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
In order to respond to complaints of election fraud or voting rights abuses on November 6, and to ensure that such complaints are directed to the appropriate authorities, Terwilliger stated that Maguire will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (804) 819-5400.
“Ensuring free and fair elections depends in large part on the cooperation of the American electorate,” said Terwilliger. “It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (804) 261-1044.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
U.S. Attorney Announcement on 2018 Midterm Elections - Norfolk and Newport NewsRead the Press Release
NORFOLK, Va. – United States Attorney G. Zachary Terwilliger announced today that Assistant U.S. Attorney Randy C. Stoker will lead the efforts here in connection with the Justice Department’s nationwide Election Day Program for the upcoming midterm elections on November 6.
Stoker has been appointed to serve as the District Election Officer (DEO) for the Norfolk and Newport News Divisions of the Eastern District of Virginia, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” said Terwilliger. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
In order to respond to complaints of election fraud or voting rights abuses on November 6, and to ensure that such complaints are directed to the appropriate authorities, Terwilliger stated that Stoker will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (757) 441-6331.
“Ensuring free and fair elections depends in large part on the cooperation of the American electorate,” said Terwilliger. “It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (757) 455-0100.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
U.S. Attorney Announcement on 2018 Midterm Elections - AlexandriaRead the Press Release
ALEXANDRIA, Va. – United States Attorney G. Zachary Terwilliger announced today that Assistant U.S. Attorney James P. Gillis will lead the efforts here in connection with the Justice Department’s nationwide Election Day Program for the upcoming midterm elections on November 6.
Gillis has been appointed to serve as the District Election Officer (DEO) for the Alexandria Division of the Eastern District of Virginia, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” said Terwilliger. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
In order to respond to complaints of election fraud or voting rights abuses on November 6, and to ensure that such complaints are directed to the appropriate authorities, Terwilliger stated that Gillis will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (703) 299-3700.
“Ensuring free and fair elections depends in large part on the cooperation of the American electorate,” said Terwilliger. “It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (202) 278-2000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
U.s. Attorney Announces Substantial New Federal Grant to Help South Dakota Drug Task Forces Fight MethRead the Press Release
SIOUX FALLS, S.D. – United States Attorney Ron Parsons joined the U.S. Department of Justice in announcing that the South Dakota Attorney General’s Office has been awarded a new $1,029,958 federal grant to combat the illegal trafficking of methamphetamine in South Dakota.
The funds were awarded through the Community Oriented Policing Services Office (COPS) Anti-Methamphetamine Program by the Department of Justice as part of a $7.2 million grant to law enforcement agencies in nine states (Indiana, Iowa, Kansas, Kentucky, Montana, Oklahoma, South Dakota, Tennessee, and Wisconsin) to support the investigation of illicit activities related to the manufacture and distribution of methamphetamine.
The grant of $1,029,958 to the South Dakota Attorney General’s Office, headed by Attorney General Marty Jackley, is equal to the largest amount awarded to any state agency under this program.
“Methamphetamine and its dealers and users are connected, in one way or another, to a large percentage of the crimes committed in South Dakota, particularly drug trafficking, gun crimes, violent assaults, robberies, burglaries, domestic abuse, sexual abuse, and child abuse and neglect,” said U.S. Attorney Parsons. “Federal, state, local, and tribal law enforcement agencies are committed to working together to stamp out this poison. And working together, we are making steady progress. For example, just last month, law enforcement in Minnehaha County seized more meth than was seized during the entire year of 2017. The timely award of this new federal grant will help our talented teams of South Dakota law enforcement officers accomplish even more.”
“The national meth epidemic is impacting and hurting our families and communities here in South Dakota,” said Attorney General Jackley. “This award presents a tremendous opportunity to cooperatively fight this meth epidemic head-on in our state.”
The grant application provides that the award will be used to fund additional investigators, agents, and forensic analysts for the Sioux Falls Police Department, Minnehaha County Sheriff’s Office, South Dakota Division of Criminal Investigation, Rapid City Police Department, Pennington County Sheriff’s Office, and Oglala Sioux Tribal Police to serve on the Sioux Falls Area Drug Task Force, Rapid City Drug Task Force, and Northern Plains Safe Trails Task Force.
“This is great news for South Dakota and bad news for those dealing drugs in our communities,” said Minnehaha County Sheriff Mike Milstead, whose deputies serve alongside other federal, state, and local law enforcement officers on the Sioux Falls Area Drug Task Force.
Two San Diego men plead guilty to robbery spree involving 10 Metro PCS stores and a Subway restaurantRead the Press Release
For Further Information, Contact:
Assistant U. S. Attorneys Stephen H. Wong (619) 546-9464 and
Lara A. Stingley (619) 546-8403Carlos Adolfo Soto and Justin Wayne Caldwell pleaded guilty today in federal court to robbing 10 Metro PCS stores and a Subway restaurant in January and February of 2017. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Soto was dubbed the “pinky bandit” for his distinctive pinky finger, which protruded out from the weapons he held during a string of eleven robberies beginning on January 25, 2017 and ending on February 21, 2017. As described in the plea agreements, the robberies targeted Metro PCS stores in and around San Diego County. In a typical robbery, Soto would enter the store holding a weapon such as a machete, tazer, or pellet gun that resembled a firearm. Soto would point his weapon at store clerks and demand cellular phones and cash. Caldwell typically waited outside the store in his vehicle, serving as the getaway driver who helped Soto escape the crime scene. On at least one occasion, Caldwell also entered the store with a weapon. For example, on February 14, 2017, the robbers pointed an object that resembled a handgun at a store clerk and forced the clerk into a storage area in the back of the store, kneeling down on his hands and feet, while they loaded a backpack with cellular phones. The robbers then ordered the clerk to open the cash register.
Public filings describe how Special Agents with the Federal Bureau of Investigation and robbery detectives with the San Diego Police Department and the San Diego Sheriff’s Department collaborated to solve this case. In late January and early February of 2017, investigators noticed a series of robberies around San Diego County that fit a pattern. Ten of the eleven robberies involved Metro PCS cell phone stores and in each the robbers used similar methods, weapons, and disguises. Investigators identified the robbers after one of them registered a cell phone taken during an earlier robbery. Surveillance ultimately led investigators to the scene of the final robbery in the series. Soto was arrested after a foot chase, during which he dropped merchandise taken during the final robbery. Officers arrested Caldwell in his car, parked at the scene.
“After striking fear in the hearts of San Diego-area store clerks, these serial robbers were apprehended and charged due to the persistent efforts of dedicated local and federal law enforcement officers,” said U.S. Attorney Adam Braverman. “Thanks to these efforts our community can rest easier, knowing that the culprits have been brought to justice.”
FBI Special Agent in Charge John Brown stated, “The FBI is committed to working side-by-side with our local partners in these criminal series cases that involve violence, fear, and intimidation in our community. With today’s convictions, this violent spree of robberies has come to an end.”
Soto and Caldwell have been in custody since February 21, 2017, and are set for sentencing on January 22, 2019 before U.S. District Court Judge Thomas J. Whelan.
Case Number 17-CR-558-W
Defendants
Carlos Adolfo Soto
Justin Wayne Caldwell
Summary of Charges
Hobbs Act Robbery, 18 U.S.C. § 1951
Maximum penalty: 20 years’ imprisonment, $250,000 fine, 3 years’ supervised release
Investigating Agencies
Federal Bureau of Investigation
San Diego Police Department
San Diego Sherriff’s Department
Two Rhode Island Men Face Bank Robbery ChargesRead the Press Release
BOSTON – Two Rhode Island men appeared in federal court in Boston yesterday to face charges in connection with two bank robberies, one in Brockton and one in Abington, that resulted in high-speed chases.
Dong Lee, 48, and Charles Lamont Wheeler, 46, were each charged with two counts of bank robbery. Both defendants are currently in custody on related state charges.
According to court documents, on Sept. 14, 2018, two individuals stole $3,890 from a branch of the Abington Savings Bank in Avon and $3,621 from a branch of the Crescent Credit Union in Brockton by means of a demand note and threatening to possess a gun. The two individuals were observed exiting both areas in a white sedan.
Tellers at both institutions described one of the robbers as an Asian male and the other as a tall black male. Bank surveillance cameras at both institutions captured images of the robbers, wearing distinctive clothing, entering the banks, robbing the tellers, and then exiting the banks.
A few minutes after the robbery of Crescent Credit Union in Brockton, local law enforcement were dispatched to a hit-and-run accident involving a white sedan, whose driver was described as a black male. The white sedan’s license plate number was taken, and a Be-On-The-Lookout (“BOLO”) was issued for the vehicle, which, law enforcement subsequently learned was stolen.
The white sedan was observed on Route 1 in Foxboro by a Massachusetts State Trooper, who pursued the vehicle, but the driver did not pull over. A lengthy high-speed pursuit ensued and eventually ended when the driver lost control of the vehicle and crashed into the wood line. The driver and the passenger then fled the vehicle and ran into the woods. The passenger, later identified as Lee, was captured a short time later in the woods, wearing clothing consistent with that worn by the robber, and in possession of thousands of dollars and a demand note.
The driver, later identified as Wheeler, initially eluded law enforcement, and then stole a vehicle from a nearby gas station. A BOLO was issued for that vehicle, and, after another high-speed chase, the driver eventually stopped after being boxed in by law enforcement on Route 1. Wheeler was wearing clothing consistent with the clothing worn by the robber in the two robberies and law enforcement recovered thousands of dollars from him.
Lee and Wheeler each face a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police Department; Avon Police Chief Jeffrey Bukunt; Brockton Police Chief John Crowley, Attleboro Police Chief Kyle P. Heagney; and North Attleboro Police Chief John J. Reilly made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Men Charged with Trafficking Methamphetamine in Eddy CountyRead the Press Release
ALBUQUERQUE – A federal grand jury sitting in Las Cruces, N.M., indicted two men, Kenny Sanchez, 53, a former resident of Carlsbad, N.M., who currently resides in Balch Springs, Tex., and Joseph Hernandez, 41, a resident of Carlsbad, charging them with trafficking methamphetamine in Eddy County, N.M. The charges against Sanchez and Hernandez, which are contained in separate indictments that were filed in Sept. 2018, are the result of investigation by the DEA and the Pecos Valley Drug Task Force into methamphetamine trafficking in Carlsbad. Sanchez’s indictment was announced this week after he was transferred from Texas to New Mexico to face the charges against him.
Sanchez is charged in a four-count indictment that was filed on Sept. 19, 2018, and charges him with participating in a methamphetamine trafficking conspiracy in April 2018, and with distributing methamphetamine on April 18, 2018, April 27, 2018 and May 9, 2018. The indictment alleges that Sanchez committed the four offenses in Eddy County.
The Abilene Police Department arrested Sanchez on a federal arrest warrant issued based on the federal indictment in Abilene, Tex., on Sept. 21, 2018. Sanchez was transferred from Texas to New Mexico on Oct. 26, 2018, and he made his initial appearance in federal court in Las Cruces, N.M., on Oct. 29, 2018. Sanchez was ordered detained pending trial, which has yet to be scheduled.
If convicted, Sanchez faces a mandatory minimum penalty of five years and a maximum of 40 years of imprisonment on the conspiracy charge and one of the distribution charges, and a mandatory minimum of ten years and a maximum of life of imprisonment on the two remaining distribution charges.
Hernandez is charged in a two-count indictment with distributing methamphetamine on March 21 and 22, 2018, in Eddy County. The PVDTF arrested Hernandez at his residence in Carlsbad on Sept. 25, 2018, and Hernandez made his initial appearance in federal court in Las Cruces. Hernandez was ordered detained pending trial, which has yet to be scheduled.
If convicted, Hernandez faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison on each of two distribution charges.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
These cases were investigated by the DEA and the Pecos Valley Drug Task Force and are being prosecuted by Assistant U.S. Attorney Clara N. Cobos of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of agents and officers from the Bureau of Land Management, Eddy County Sheriff’s Office and Carlsbad Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Two Individuals and a Corporation Sentenced for Their Roles in Multi-Million Health Care Fraud and Money Laundering Scheme Involving Alcohol and Drug Addiction Treatment Centers and Clinical LaboratoriesRead the Press Release
Smart Lab LLC, and the corporation’s Chief Executive and Chief Operating Officers were sentenced for their participation in a multi-million health care fraud scheme that involved the filing of fraudulent insurance claim forms and defrauding health care benefit programs.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Robert Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak OIG); Isabel Colon, Regional Director, U.S. Department of Labor, Employee Benefits Security Administration (DOL-EBSA); Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB); and John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS) made the announcement.
H. Hamilton Wayne, a/k/a “Hawkeye,” 40, of Palm Beach Gardens, Justin Morgan Wayne, 39, of Boca Raton, and Smart Lab LLC, of Palm Beach Gardens, previously pled guilty to one count of conspiracy to commit health care fraud. Today, U.S. District Judge Donald M. Middlebrooks sentenced Smart Lab Chief Executive Officer (CEO) H. Wayne to 63 months in prison, to be followed by 3 years of supervised release; Smart Lab Chief Operating Officer (COO) J. Wayne to 46 months in prison, to be followed by 3 years of supervised release; and the corporation to 3 years of probation. The three defendants were jointly and severally ordered to pay $2,897,389.50 in restitution to the victims of their offenses. H. Wayne was separately ordered to pay $954,344 to the TRICARE program for his involvement in fraud at RX to You, along with a $50,000 fine. J. Wayne was separately ordered to pay a $20,000 fine.
According to court documents, Smart Lab LLC was established by CEO H. Wayne, and COO J. Wayne, to perform confirmatory urinalysis testing. Smart Lab, H. Wayne and J. Wayne established bank accounts to receive proceeds of insurance claims for medically unnecessary urinalysis testing and to pay kickbacks and bribes to individuals and entities that referred urine samples to Smart Lab for testing.
H. Wayne and J. Wayne established employment agreements wherein H. Wayne and co-conspirators would solicit bodily fluid samples from substance abuse treatment centers that would be submitted to Smart Lab for expensive confirmatory drug testing. In exchange, Smart Lab would kick back a portion of the insurance reimbursements, disguised as payments for sales commissions, to co-conspirators, understanding that a portion of these payments would then be paid, directly or indirectly, to owners, operators, or clinicians at the substance abuse treatment centers that referred the testing of urine samples from insured patients.
To achieve the goal, Smart Lab, H. Wayne, J. Wayne, and co-conspirators developed form standing orders and drug testing protocols that provided for duplicative, medically unnecessary, and expensive confirmatory testing regardless of the individual needs of any patients. To further the scheme, co-conspirator treatment center owners required the insured substance abuse treatment center patients to submit to confirmatory drug testing approximately three times per week, which Smart Lab, H. Wayne, J. Wayne, and others could bill to the insurance plans. Smart Lab, H. Wayne and J. Wayne elected not to collect mandatory co-payments, deductibles, and other co-insurance from patients that could cause patients to be unable or unwilling to submit to testing. The defendants did not inform the insurance plans that they were not collecting the required co-insurance payments.
In addition, Lanny Fried, a top Smart Lab sales representative, had an agreement with Smart Lab to receive commissions of approximately 50% of the insurance reimbursements for the substance abuse treatment facilities he referred to Smart Lab. These payments were classified as commissions when in reality they were kickbacks for the referral of excessive, medically unnecessary, fraudulent and duplicative confirmatory drug testing. Fried served as the sales representative for Smart Lab’s largest account, Reflections Treatment Center in Margate, Florida. Fried used a portion of these commissions to pay Reflections’ owner, Kenneth Chatman, illegal cash kickbacks to induce him to continue referring urine samples to Smart Lab. Using Fried as a “middleman” for the payments to Chatman disguised the true ownership and purpose of the funds. From 2005 through 2017, Smart Lab paid Fried over $600,000. These payments came from proceeds of health care fraud.
Fried also recruited friends and business associates to engage in similar activity. These individuals signed employment agreements with Smart Lab that purported to make them “sales representatives”. These agreements were used to make it appear that monies paid to Fried and others were for services rendered. The employment contracts were created to hide the true purpose and recipient of the payments. Fried and the others involved did not perform any actual services for Smart Lab and they were paid “commissions” from the proceeds of health care fraud. These funds were then disbursed to others, per Fried’s instructions.
Fried previously pled guilty to one count of conspiracy to commit money laundering and is scheduled to be sentenced by U.S. District Judge Robin I. Rosenberg on November 29, 2018.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, Florida Division of Investigative and Forensic Services, Amtrak OIG, DOL-EBSA, NICB and DCIS. These cases are being prosecuted by Assistant U.S. Attorneys A. Marie Villafaña and Alexandra Chase.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov at www.usdoj.gov/usao/fls.
Two Indicted in Credit Card Skimming SchemeRead the Press Release
PROVIDENCE, RI – A federal grand jury in Providence today indicted two men in an alleged scheme to create and install credit card skimming machines they used to steal thousands of credit card numbers and personal identifying information of credit card owners.
It is alleged in the indictment that skimming machines were placed in gas stations and other locations in multiple states between April 2016 and June 2018. Stolen credit card and personal identifying information was used to create fraudulent credit and debit cards that were used to make at least $1.2 million dollars worth of purchases.
The indictment charges Juan Jose Rodriguez-Castro, 36, and Wilberd Armando Reyes-Castro, aka “Jose M. Robels-Burgos,” 25, with conspiracy to commit bank fraud, possession of unauthorized access devices, possession of device making equipment, possession of document making implements, and aggravated identity theft.
The return of the indictment is announced by United States Attorney Stephen G. Dambruch, Special Agent in Charge of the United States Secret Service Stephen Marks, Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh, and Pawtucket Police Chief Tina Goncalves.
According to court documents, on June 6, 2018, Pawtucket Police responded to a 911 call for a reported armed home invasion in progress. When officers entered the residence, they discovered several computers, credit card skimming machines, equipment and supplies used to create fraudulent credit, debit and identification cards, a photo identification card printer, a laminating machine, and identification holograms from various states.
A forensic examination of the computers by agents from the United States Secret Service and Homeland Security Investigations revealed more than 18,000 stolen credit card numbers and stolen personal identifying information.
It is alleged in the indictment that the defendants used the stolen data to create hundreds of counterfeit credit, debit, and state identification cards. Fraudulently created credit cards were used to make at least $1.2 million dollars in purchases.
Reyes-Castro and Rodriguez-Castro have been detained since their arrest on June 6, 2018. Immigration detainers have been lodged against both defendants, Dominican nationals, by Immigration and Custom Enforcement.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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Twisp Pharmacist Surrendered License, is Sentenced to 5 Years Probation and is Ordered to Pay a Fine for Illegally Possessing OpioidsRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Brian Shane Johnson, age 41, of Twisp, Washington, was sentenced today after having pleaded guilty on June 6, 2018, to possessing Oxycodone without a valid prescription or order. As part of the plea agreement, Johnson agreed to forfeit and surrender his pharmacist license to the State of Washington, Department of Health (DOH), Pharmacy Quality Assurance Commission (PQAC). United States Magistrate Judge John T. Rodgers sentenced Johnson to a 5-year term of probation and ordered him to pay a $7,500 fine.
According to information disclosed during court proceedings, DEA initiated an investigation after receiving information from DOH that Johnson, the owner/operator of Brewster Drug, in Brewster, Washington, was working at the pharmacy while impaired. In July and October 2017, Douglas Okanogan Fire District No. 15 responded to two medical emergencies at Brewster Drug and administered Narcan, a nasal spray used for the treatment of an opioid emergency, to Johnson. On another occasion, Johnson was arrested for driving under the influence. After conducting an onsite audit, DEA served an Immediate Suspension Order (ISO) on Brewster Drug’s DEA Registration. The ISO suspended Brewster Drug’s authority to order or dispense Schedule II-IV controlled substances. When interviewed, Johnson told DEA investigators he diverted and used approximately 8-10 Oxycodone 30mg pills a day. DEA’s audit and criminal investigation revealed Johnson diverted approximately 10,594 Oxycodone 30mg pills, 1,099 Morphine IR 15mg pills, 189 Morphine ER 100mg pills, and 11,125 Carisoprodol 350mg pills, for personal use. On October 19, 2018, Johnson surrendered his credential to practice as a pharmacist and agreed to never resume the practice of pharmacy in the state of Washington.
U.S. Attorney Harrington said, “We rely on pharmacists to safeguard the integrity of our prescription drug system. Johnson took advantage of his unique position to divert prescription drugs for his personal use. A pharmacist’s diversion of prescription drugs for personal use is particularly troubling because it removes prescription drugs from lawful distribution channels, potentially putting patients’ health at risk. The sentence imposed holds Johnson accountable for his conduct. The United States Attorney’s Office for the Eastern District of Washington is committed to prosecuting those who divert prescription drugs from their authorized controlled distribution system.”
“We are in a real struggle to reign in opioids plaguing our communities,” stated DEA Special Agent in Charge of the Pacific Northwest Region Keith Weis. “This individual has lost his DEA License because there is absolutely no place for the unaccountability surrounding his reckless and illegal dispensing.”
This case was investigated by the U.S. Drug Enforcement Administration, U.S. Department of Health & Human Services, Office of Inspector General, and the State of Washington Department of Health. This case was prosecuted by George J.C. Jacobs, III, and Dan Fruchter, Assistant United States Attorneys for the Eastern District of Washington.
Ten Charged in Brockton Fentanyl and Cocaine ConspiracyRead the Press Release
BOSTON – Ten individuals, most of whom are from Brockton, were charged today in federal court in Boston in a wide-ranging fentanyl and cocaine conspiracy.
Seven individuals were arrested today, two are currently in state custody, and one is at-large. The following 10 individuals were charged by criminal complaint with one count of conspiracy to distribute and possess with intent to distribute fentanyl and cocaine:
- Djuna Goncalves, 32, of Brockton, currently in state custody;
- Cody Goncalves, 26, of Brockton, currently in state custody;
- Anthony Goncalves, 20, of Brockton, currently at-large;
- Angelo Pina, 27, of Brockton;
- Calvin Mendes, 40, of Brockton;
- Carlos Antunes, 33, of Brockton;
- Jermaine Gonsalves, 32, of Brockton;
- Ozair Pereira, 30, of Brockton;
- Joseph Greene, 21, of Taunton; and
- Brian Donahue, 38, of Truro
“This morning’s arrests should remind all gang members and drug traffickers that they cannot operate freely in this state,” said United States Attorney Andrew E. Lelling. “Over the past year, in conjunction with our federal, state, and local law enforcement partners, we have removed dozens of violent criminals from our communities, and we will continue to do so.”
“Today’s operation illustrates Homeland Security Investigations’ commitment to public safety and highlights our unrelenting pursuit of justice,” said Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston. “Through successful partnerships with the Massachusetts State Police, Drug Enforcement Administration and Brockton Police Department, we have dealt a severe blow to a violent drug trafficking organization here in the commonwealth.”
“DEA is committed to investigating and dismantling violent poly drug trafficking organizations like this one operating in the Brockton area,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “As we all know, drug trafficking, along with the gun and physical violence that often accompanies it, is a serious threat to our families and our communities. This investigation demonstrates the strength of collaborative local, state and federal law enforcement efforts in Massachusetts to bring to justice anyone who engages in these crimes.”
“We are proud to work with our federal and local law enforcement partners to help dismantle this significant drug trafficking organization,” said Colonel Kerry A. Gilpin, Superintendent, Massachusetts State Police. “I would like to especially note the work in this investigation of our regional narcotics task force, which was established last year as part of our new State Police Division of Homeland Security. We remain committed to disrupting drug trafficking in Plymouth County and across the state and quelling the street violence associated with the narcotics trade.”
“Operation Red Heat dismantled a large scale Fentanyl distribution ring making its home base on Addison Avenue, but with a trafficking reach far outside of Brockton’s borders,” said Plymouth County District Attorney Timothy J. Cruz. “I commend the work of Massachusetts State Police CINRET, Detectives in the Plymouth County District Attorney’s Office, Homeland Security, DEA and Brockton Police to take five guns and a half kilo of Fentanyl off the street. Their diligent police work quieted the drug activity in a Brockton neighborhood and made much of Plymouth County safer today.”
“This is another example of the ongoing efforts of the Brockton Police Department and the administration of Brockton Mayor Bill Carpenter to partner with federal, state and local law enforcement partners to take the most violent repeat offenders off the streets and make Brockton a safer City,” said Brockton Police Chief John Crowley.
According to the charging document, in 2018, federal, state, and local law enforcement began investigating Djuna Goncalves and other alleged members of A Block, a violent Brockton Street gang whose members typically come from Addison Avenue or the surrounding neighborhood, which have for years been plagued by shootings, including two murders, and other crimes of violence.
It is alleged that during the investigation, Djuna Goncalves and his brothers Cody and Anthony Goncalves distributed large quantities of fentanyl, cocaine, and other drugs from an apartment on Addison Avenue to A Block members and other drug traffickers in Brockton and southeastern Massachusetts. Djuna and Cody Goncalves and Calvin Mendes distributed drugs while on pre-trial release for pending state drug trafficking and gun possession charges. Djuna Goncalves and Angelo Pina were previously convicted of drug trafficking offenses in federal court in Boston, and Pina is still on supervised release from his prior federal conviction.
On Oct. 21, 2018, Djuna Goncalves survived an assassination attempt after an unidentified assailant fired multiple shots into his basement apartment. It is alleged that when law enforcement officers executed a search warrant at Goncalves’ home, they recovered an AK-47 assault rifle, a Glock .45 caliber pistol, a large number of ammunition clips to various types of firearms and accompanying ammunition, fentanyl, cocaine, crack cocaine, marijuana, suboxone strips, a hydraulic press, packaging materials, digital scales, and approximately $12,000 in cash. Djuna and Cody Goncalves were subsequently arrested on state charges as a result of the evidence seized during the execution of the search warrant.
The charge of conspiracy to distribute and possess with intent to distribute fentanyl and cocaine provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Lelling; HSI SAC Fitzhugh; DEA SAC Boyle; Colonel Gilpin; DA Cruz; and Chief Crowley made the announcement today. The United States Marshals Service provided valuable assistance with the investigation. Assistant U.S. Attorney Christopher Pohl of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
St. Petersburg Man Involved in Shootout Pleads Guilty to Felon in Possession of A FirearmRead the Press Release
Tampa, Florida – Lavonta Hill (27, St. Petersburg) has pleaded guilty to possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court documents, on January 25, 2017, at approximately 3:45 a.m., Hill was involved in a shootout in a residential area on 15th Avenue South, near 16th Street South, in St. Petersburg. Shortly after the shooting, St. Petersburg Police Department (SPPD) officers found Hill on the ground in the parking lot of a nearby liquor store, bleeding from his head and one arm. Hill, who at the time was a convicted felon and prohibited from possessing a firearm or ammunition, denied knowing where the shooting occurred, who shot him, or why. He was taken to a hospital and treated for gunshot wounds.
Further investigation by SPPD determined that the shooting had occurred in an area on 15th Street South encompassing several houses, where at least 62 rounds of ammunition had been fired. In the front yard of one of the residences, an officer found a blue recycling container with blood smeared on it. Under the container, the officer found a firearm with blood on it and investigators discovered a trail of blood drops leading from that residence to the liquor store parking lot, ending at the spot where the officers had found Hill. A surveillance video from the grocery store showed a man staggering across the parking lot and crossing the street toward the liquor store at approximately 3:46 a.m., and witnesses described seeing Hill stumble and sway as he approached the liquor store. DNA from the blood on the firearm and recycling bin matched Hill’s DNA and a firearms and ballistics expert determined that two of the cartridge cases from the shooting scene were fired from the firearm linked to Hill.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Petersburg Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Michael Sinacore.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Siblings Plead Guilty for Receiving Payment from Federally-Funded Organization for Work Not DoneRead the Press Release
COEUR D’ALENE –Amber Annette Hosking, 39, and Jessica Fay Barnes, 32, sisters, from Spokane Valley, Washington, pleaded guilty Tuesday to conspiracy to commit federal program theft, U.S. Attorney Bart M. Davis announced.
According to court records, from 2015 to February 2018, both women conspired with an unnamed agent of the North Idaho Housing Coalition to commit federal program theft. The conspiracy involved the sisters receiving money from the Coalition after an agent for the Coalition submitted false bills for work never performed. The Coalition’s agent, knowing the bills were false, still paid the sisters from the Coalition’s bank accounts. The sisters knew the bills submitted to the Coalition were false. Hosking agreed to forfeit at least $16,500 obtained from the crime, while Barnes agreed to forfeit at least $15,000 obtained from her part in the crime.
Hosking and Barnes’ sentencings are set for January 29, 2019 before Senior U.S. District Court Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene. Each faces a maximum punishment of up to five years imprisonment and up to a $250,000 fine.
U.S. Attorney Davis commended the collaborative efforts of the Federal Bureau of Investigation, the City of Coeur d’Alene Police Department, the Kootenai County Prosecutors Office and his office staff. “We are always at our strongest when we work together for the good of the public we serve,” said Davis.
This case was worked collaboratively by the Federal Bureau of Investigation and the City of Coeur d’Alene Police Department.
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Schuylkill County Woman Guilty of Methamphetamine Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Laverne Schaeffer, age 46, of Schuylkill Haven, Pennsylvania, pleaded guilty on October 30, 2018 before U.S. District Court Judge Robert D. Mariani to conspiracy to distribute more than 50 grams of methamphetamine.
According to United States Attorney David J. Freed, Schaeffer admitted to conspiring with her husband, Ernest Schaeffer and others to distribute methamphetamine to customers in the Schuylkill County area. Schaeffer committed the offense between July 2016 and May 24, 2017, in Schuylkill County and elsewhere.
Schaeffer was indicted by a grand jury along with three other persons in August 2017. Schaeffer’s husband Ernest previously pleaded guilty and is awaiting sentencing.
As part of a plea agreement, Schaeffer agreed to forfeit dozens of acres of real estate in Schuylkill County—property that Schaeffer and her husband used to store and distribute methamphetamine.
Judge Mariani ordered a presentence report to be completed and sentencing will be scheduled at a later date.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police from Schuylkill County. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 40 years in prison, a term of supervised release following imprisonment, and a fine. The charge also carries a mandatory minimum penalty of five years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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San Diego County Man Found Guilty of Laundering Ransom Money Paid by Relatives of Kidnapping Victims Held Hostage in TijuanaRead the Press Release
LOS ANGELES – A man who laundered ransom money for a violent kidnapping organization that held hostage two dozen Mexican nationals has been convicted on federal conspiracy charges.
Luis Francisco Murillo Morfin, 33, of National City, was found guilty Wednesday of conspiracy to commit money laundering. United States District Judge John F. Walter issued the verdict after a two-day bench trial.
The kidnapping victims were lured by false promises of being smuggled into the United States. In August 2015, members of the Mexico-based conspiracy picked up victims in Northern Mexico, drove them in the trunks of cars through a fake border “checkpoint,” and then took them to a stash house in Tijuana, where they were threatened, beaten and raped. One kidnapping victim testified at trial about being raped, while another testified about being sexually assaulted.
While the kidnapping victims were held hostage in Tijuana, their captors extorted their relatives in the United States, ordering them to deposit ransom money in U.S. bank accounts and wire ransom money to co-conspirators in Mexico. Extortion victims testified at trial about being threatened that, if they did not pay, their relatives would be beaten, murdered or disemboweled.
As relatives of the kidnapping victims deposited money, Murillo, a lawful permanent resident of the United States, twice drove from Mexico to the United States and withdrew the ransom payments from his bank account for delivery to his co-conspirators to Mexico.
The evidence at trial showed that Murillo opened a Wells Fargo bank account in his name on April 30, 2015, and made monthly payments to keep it open, but did not use the account until August 4, 2015 – one day after his co-conspirators kidnapped and held for ransom nine victims.
The extortion victims deposited $62,000 in ransom money into Murillo’s account from bank branches in Ontario, Santa Maria, Northern California, Idaho and Mississippi. Murillo withdrew all $62,000 within less than 48 hours, lying to a Wells Fargo bank employee about the money’s purpose. Murillo did not use the account again, and Wells Fargo closed it on August 19, 2015. Murillo later admitted to law enforcement that he knew the money constituted the proceeds of criminal activity.
Judge Walter is scheduled to sentence Murillo on February 4, 2019, at which time he will face a statutory maximum penalty of 10 years in federal prison.
Murillo was charged along with four other defendants, all of whom are Mexican nationals believed to be residing in Mexico. The other defendants are: Jesus Antonio Rivera Gaxiola, a.k.a. “The Cook,” Manuel Roman Velazquez, a.k.a. “The Caller,” Alberto Jimenez Bautista, a.k.a. “Jefe,” and Luis Perez Martinez.
The case was investigated by the Federal Bureau of Investigation and IRS Criminal Investigation, with the assistance of U.S. Customs and Border Protection.
This case is being prosecuted by Assistant United States Attorneys Victoria Degtyareva and Carley Palmer of the Organized Crime Drug Enforcement Task Force Section.
Rocky River businessman C. David Snyder sentenced to two years in prison, ordered to pay $781,000 in restitution for embezzlement and tax crimesRead the Press Release
Rocky River business executive C. David Snyder was sentenced to two years in prison for embezzlement and tax crimes.
Snyder was also ordered to pay approximately $781,000 in restitution.
A federal jury convicted Snyder earlier this year on six charges related to embezzling $126,000 from an employee retirement fund and collecting nearly $860,000 from his employees but not paying the money to the IRS.
Snyder, 61, served as chairman, president and chief executive officer of Attevo, Inc., a technology consulting company headquartered in Cleveland. He also served as chairman and primary shareholder at Ruralogic, Inc., headquartered in Bryan, Ohio.
Attevo employees prepared financial records and schedules, quarterly and annual returns and reports for Attevo, at Snyder’s direction. Snyder ranked Attevo’s payables in order of importance, according to court documents.
Snyder, on behalf of Attevo, and the IRS in 2011 agreed to a monthly payment plan of $48,350 per month to repay the company’s outstanding payroll tax liabilities. Attevo made 10 payments totaling $483,500 then made no further payments, according to court documents.
Snyder withheld payroll tax from employees but failed to pay it to the IRS. Snyder failed to pay over approximately $328,355 of employee’s portion of payroll taxes in 2010 and approximately $530,778 in 2012, according to court documents.
Snyder created a 401(k) and profit-sharing plan for Attevo employees in 2009. Ruralogic was added to the plan in 2010. The plan was funded through employee payroll deferrals. Between 2010 and 2012, Snyder failed to pay into the plan approximately $126,000 in contributions and loan repayments withheld from Attevo and Ruralogic employee wages, according to court documents.
During the time of his criminal conduct, instead of paying Attevo’s employment taxes, Snyder paid $20,000 per month for the rental of a personal residence in Lakewood and his vacation home in Chautauqua, New York, leases on four vehicles and other personal expenses, according to trial testimony and court documents.
He also used Attevo’s American Express to pay personal expenses, including women’s clothing at Ann Taylor, Nieman-Marcus and other stores, beauty supplies at Oro Gold in Las Vegas, travel to resorts in Florida and for pool/spa renovations, according to trial testimony and court documents.
Snyder earned income from Attevo totaling approximately $1.6 million between 2009 and 2012, according to the court documents and trial testimony.
“This defendant embezzled money from his employees and pocketed taxes he took out of their paychecks, which he used to pay for his vacation home, swimming pool renovation and to otherwise fund his lifestyle,” U.S. Attorney Justin Herdman said. “This sentence demonstrates that we take fraud seriously and criminals will be held accountable, whether they operate on street corners or in corner suites.”
“C. David Snyder was placed in the utmost position of trust by Attevo, Inc. and Ruralogic, Inc., but he chose to abuse that position of trust for his own personal greed,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “These companies ended up being his own personal piggy bank as he used their money to pay for his residence, vacation home, vehicles, and other personal expenses. Now he is a convicted felon and owes a substantial amount of money to the IRS.”
“Charles David Snyder embezzled over $126,000 from his employees’ 401(k) retirement plan. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Employee Benefits Security Administration to protect the retirement assets covered by the Employee Retirement Income Security Act,” said James Vanderberg, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
This case was investigated by the Internal Revenue Service – Criminal Investigations and the U.S. Department of Labor – Office of Inspector General. It is being prosecuted by Assistant U.S. Attorneys Megan R. Miller and Michael L. Collyer.
Richland County Boy Scout official arrested and charged production of child pornography after surreptitiously recording children changingRead the Press Release
A Richland County man affiliated with the Boy Scouts of America was arrested and charged in federal court with production of child pornography after he surreptitiously recorded children changing.
Thomas Close, 39, of Shelby, was charged with sexual exploitation of children and receiving and distributing child pornogrpahy. The investigation is ongoing.
According to an affidavit filed in the case:
Homeland Security Investigations agents received information from the Cyber Crimes Center regarding videos taken of minor boys changing before or after swimming at the YMCA in Sandusky.
A review of several videos revealed they were recorded at the YMCA facility in Sandusky, which sometimes rented its pool to the Boy Scouts, inside teepees used at the Firelands Scout Reservation in Wakeman, as well as inside the bathroom of a home that appeared to have a swimming pool.
Investigators met with Boy Scouts of America officials in Cleveland, whose area includes seven counties. Due to the fact that all of the photos appear to revolve around changing before or after swimming, Boy Scout officials alerted investigators to an incident report from June 2017 documenting an occurrence at the Firelands Scout Reservation they felt could be related. The report was made by a den leader regarding a Boy Scouts of America staff member named Thomas Close, also known as “Aqua Joe,” according to the affidavit.
Close is associated with Boy Scout Troop 406 and has a pool in his back yard.
HSI investigators went to Close’s home on Nov. 1. Upon viewing his bathroom, they realized it is the same bathroom depicted in one of the videos. Close admitted to making the videos and said he created videos between 2011 and the summer of 2018, according to the affidavit.
He also admitted to downloading child pornography and said he had approximately five terabytes of child pornography on his computer, according to the affidavit.
“This case was solved because of good investigative work but also because a parent who was trained to look for signs of suspicious activity raised their concerns to Scout leadership,” said U.S. Attorney Justin Herdman. “We all have an obligation to be aware of what is taking place around us and let authorities know when there are concerns.”
“This individual is accused of violating his position of trust with the Boy Scouts and as a teacher to exploit and take advantage of young people under his supervision," said Steve Francis, special agent in charge of HSI for Michigan and Ohio. "The exploitation of children is reprehensible, and HSI has highly skilled and dedicated special agents to investigate child exploitation crimes to ensure that we identify and arrest perpetrators while protecting our most vulnerable population, our children."
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than maximum.
This case was investigated by Homeland Security Investigations, the Ohio Internet Crimes Against Children Task Force and the Shelby Police Department. It is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik.
A charge is only an allegation and not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Anyone with knowledge of the man’s unsupervised contact with children should contact HSI at 216-749-9602.
Pleasanton Man Convicted of Online Enticement and International Sexual Abuse of A ChildRead the Press Release
OAKLAND – A federal jury convicted David John Telles, Jr. of online enticement of a minor, travel with intent to engage in illicit sexual conduct, and engaging in illicit sexual conduct with a minor in a foreign place, announced United States Attorney Alex G. Tse and Homeland Security Investigations Special Agent in Charge Ryan Spradlin. The guilty verdict was handed down October 29, 2018, following a jury trial before the Honorable Jeffrey S. White, U.S. District Judge.
Evidence at trial showed that Telles, then 38 years old, lived in Pleasanton, California, and used the internet to entice and induce a child to engage in sexual activity. Specifically, Telles used an online messaging application to groom the 14-year-old victim for weeks before he traveled to England with the intent to sexually abuse her in June of 2014. After arriving in England, Telles took the victim to two different hotels where he sexually abused her over the course of two days. Police officers from the Devon and Cornwall Constabulary in England ultimately apprehended Telles and rescued the child.
On October 13, 2016, a federal grand jury returned an indictment charging defendant with: online enticement of a minor, in violation of 18 U.S.C. § 2422(b); traveling with intent to engage in illicit sexual conduct in foreign places, in violation of 18 U.S.C. § 2423(b); and engaging in illicit sexual conduct in foreign places, in violation of 18 U.S.C. § 2423(c).
The investigation began when HSI received a request for assistance from the Devon and Cornwall Constabulary in the United Kingdom in locating a missing 14-year-old child. HSI arrested Telles on October 20, 2016, at San Francisco International Airport, following his deportation from the United Kingdom.
Telles is currently being held in the custody of the United States Marshal. Judge White scheduled Telles’s sentencing hearing for February 26, 2019. The maximum statutory penalty for the violation of 18 U.S.C. § 2422(b) is life imprisonment and a fine of $250,000, plus restitution. There is also a mandatory minimum 10-year term of imprisonment for the offense. The maximum statutory penalties for the violations of 18 U.S.C. §§ 2423(b) and (c) are 30 years imprisonment and a fine of $250,000, plus restitution. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Christina McCall and Vanessa Baehr-Jones are prosecuting the case with the assistance of Vanessa Quant, Michelle Alter Eck, Katie Turner, and Noble Hughes. This prosecution is the result of investigations carried out by HSI and the Devon and Cornwall Constabulary.
Pittsburgh man sentenced for selling heroinRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher A. Cobbs, of Pittsburgh, Pennsylvania, was sentenced today to 12 months incarceration for selling heroin, United States Attorney Bill Powell announced.
Cobbs, also known as “Bro-Bro,” age 25, pled guilty to one count of “Distribution of Heroin” in June 2018. Cobbs admitted to selling heroin in July 2015 in Harrison County.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Greater Harrison Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.Paris Farmer Indicted for Crop Insurance FraudRead the Press Release
LEXINGTON, Ky. – A Paris man was indicted by a federal grand jury today, and charged with engaging in crop insurance fraud.
The grand jury, sitting in Lexington, returned a five-count indictment charging 49-year-old Keith A. Foley with four counts of making false statements to influence the Federal Crop Insurance Corporation (“FCIC”) and companies the FCIC reinsures, and one count of conspiring to commit wire fraud in the course of defrauding private insurance companies.
The indictment alleges that as early as crop year 2010, Foley, a tobacco producer in Bourbon and Jessamine Counties, hid his tobacco production from insurance companies, in order to claim damage to his crop sufficient to trigger crop insurance indemnity payments or generate larger indemnity payments, which are funded by the federal government through the FCIC. The indictment also charges Foley with conspiracy to commit wire fraud, for the purpose of profiting through the filing of false and fictitious insurance claims. The wire fraud conspiracy count alleges that Foley submitted Tobacco Test Sheets to his private insurance companies that were supposed to accurately reflect the amount of damage to his tobacco crop. Instead, according to the indictment, Foley, with the help of others, submitted Tobacco Test Sheets that were slightly altered duplicates of those submitted for other producers or that he had already submitted. Additionally, the indictment charges that Foley’s private crop insurance policy claim for crop year 2015 included a duplicated photograph submitted on another producer’s insurance claim.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Karen Citizen-Wilcox, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Michael A. Christmas, Acting Special Agent in Charge, Federal Bureau of Investigation, Louisville Division; Christopher Altemus, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Dwayne Depp, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly announced the indictment.
The investigation preceding the indictment was conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and Kentucky Department of Insurance. The indictment was presented to the grand jury by Assistant U.S. Attorneys Kathryn M. Anderson and Erin M. Roth.
A date for Foley to appear in court has not yet been scheduled. For each charge of making false statements to the FCIC, Foley faces up to 30 years in prison and a fine of $1,000,000. For the conspiracy to commit wire fraud, Foley faces up to 20 years in prison and a fine of $250,000. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
PRC State-Owned Company, Taiwan Company, and Three Individuals Charged with Economic EspionageRead the Press Release
A federal grand jury indicted a state-owned enterprise of the People’s Republic of China (PRC), a Taiwan company, and three individuals, charging them with crimes related to a conspiracy to steal, convey, and possess stolen trade secrets of an American semiconductor company for the benefit of a company controlled by the PRC government. All of the defendants are charged with a conspiracy to commit economic espionage, among other crimes. Attorney General Jeff Sessions, FBI Director Christopher Wray, Assistant Attorney General for National Security John Demers, Assistant Attorney General for the Criminal Division Brian A. Benczkowski, United States Attorney Alex G. Tse of the Northern District of California, and FBI Special Agent in Charge for the San Francisco Field Office John F. Bennett made the announcement.
In addition, the United States filed a civil lawsuit seeking to enjoin the further transfer of the stolen trade secrets and to enjoin certain defendants from exporting to the United States any products manufactured by UMC or Jinhua that were created using the trade secrets at issue. The indictment was filed on September 27, 2018, and unsealed today. The civil lawsuit was filed today.
“I am announcing that a grand jury in San Francisco has returned a multi-defendant indictment alleging economic espionage on the part of a state-owned Chinese company, a Taiwanese company, and three Taiwan individuals for an alleged scheme to steal trade secrets from Micron, an Idaho-based semi-conductor company,” said Attorney General Sessions. “The worldwide supply for DRAM is worth nearly $50 billion; Micron controls about 20 to 25 percent of the dynamic random access memory industry—a technology not possessed by the Chinese until very recently. As this and other recent cases have shown, Chinese economic espionage against the United States has been increasing—and it has been increasing rapidly. I am here to say that enough is enough. With integrity and professionalism, the Department of Justice will aggressively prosecute such illegal activity.”
“The theft of intellectual property is not only unfair, but stifles technological innovation by disincentivizing investment in long-term research and development,” said U.S. Attorney Alex Tse. “The theft of intellectual property on a continuing basis by nation-state actors is an even more damaging affront to the rule of law. We in the Northern District of California, one of the world’s great centers of intellectual property development, will continue to lead the fight to protect U.S. innovation from criminal misappropriation, whether motivated by personal greed or national economic ambition.”
"No country presents a broader, more severe threat to our ideas, our innovation, and our economic security than China," said FBI Director Christopher Wray. "The Chinese government is determined to acquire American technology, and they’re willing use a variety of means to do that – from foreign investments, corporate acquisitions, and cyber intrusions to obtaining the services of current or former company employees to get inside information. If China acquires an American company's most important technology – the very technology that makes it the leader in a field – that company will suffer severe losses, and our national security could even be impacted. We are committed to continuing to work closely with our federal, state, local, and private sector partners to counter this threat from China."
According to the indictment, the defendants were engaged in a conspiracy to steal the trade secrets of Micron Technology, Inc. (Micron), a leader in the global semiconductor industry specializing in the advanced research, development, and manufacturing of memory products, including dynamic random-access memory (DRAM). DRAM is a leading-edge memory storage device used in computer electronics. Micron is the only United States-based company that manufactures DRAM. According to the indictment, Micron maintains a significant competitive advantage in this field due in large part from its intellectual property, including its trade secrets that include detailed, confidential information pertaining to the design, development, and manufacturing of advanced DRAM products.
Prior to the events described in the indictment, the PRC did not possess DRAM technology, and the Central Government and State Council of the PRC publicly identified the development of DRAM and other microelectronics technology as a national economic priority. The criminal defendants are United Microelectronics Corporation (“UMC”), a Taiwan semiconductor foundry; Fujian Jinhua Integrated Circuit, Co., Ltd. (“Jinhua'”), a state-owned enterprise of the PRC; and three Taiwan nationals: Chen Zhengkun, a.k.a. Stephen Chen, age 55; He Jianting, a.k.a. J.T. Ho, age 42; and Wang Yungming, a.k.a. Kenny Wang, age 44. UMC is a publicly listed semiconductor foundry company traded on the New York Stock Exchange; is headquartered in Taiwan; and has offices worldwide, including in Sunnyvale, California. UMC mass produces integrated-circuit logic products based on designs and technology developed and provided by its customers. Jinhua is a state-owned enterprise of the PRC, funded entirely by the Chinese government, and established in February 2016 for the sole purpose of designing, developing, and manufacturing DRAM.
According to the indictment, Chen was a General Manager and Chairman of an electronics corporation that Micron acquired in 2013. Chen then became the president of a Micron subsidiary in Taiwan, Micron Memory Taiwan (“MMT”), responsible for manufacturing at least one of Micron’s DRAM chips. Chen resigned from MMT in July 2015 and began working at UMC almost immediately. While at UMC, Chen arranged a cooperation agreement between UMC and Fujian Jinhua whereby, with funding from Fujian Jinhua, UMC would transfer DRAM technology to Fujian Jinhua to mass-produce. The technology would be jointly shared by both UMC and Fujian Jinhua. Chen later became the President of Jinhua and was put in charge of its DRAM production facility.
While at UMC, Chen recruited numerous MMT employees, including Ho and Wang, to join him at UMC. Prior to leaving MMT, Ho and Wang both stole and brought to UMC several Micron trade secrets related to the design and manufacture of DRAM. Wang downloaded over 900 Micron confidential and proprietary files before he left MMT and stored them on USB external hard drives or in personal cloud storage, from where he could access the technology while working at UMC.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the individual defendants face a maximum sentence of 15 years imprisonment and a $5,000,000 fine for economic espionage charges, and 10 years imprisonment for theft of trade secrets charges. If convicted, each company faces forfeiture and a maximum fine of more than $20 billion. However, any sentence following conviction would 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.
PRC State-Owned Company, Taiwan Company, and Three Individuals Charged with Economic EspionageRead the Press Release
SAN FRANCISCO – The Department of Justice announced that a federal grand jury indicted a state-owned enterprise of the People’s Republic of China (PRC), a Taiwan company, and three individuals, charging them with crimes related to a conspiracy to steal, convey, and possess stolen trade secrets of an American semiconductor company for the benefit of a state-owned enterprise of the PRC. In addition, the United States filed a civil lawsuit seeking to enjoin the further transfer of the stolen trade secrets and to enjoin certain defendants from exporting to the United States any products manufactured by UMC or Jinhua that were created using the trade secrets at issue. The indictment was filed on September 27, 2018, and unsealed today. The civil lawsuit was filed this morning.
“I am announcing that a grand jury in San Francisco has returned a multi-defendant indictment alleging economic espionage on the part of a state-owned Chinese company, a Taiwanese company, and three Taiwan individuals for an alleged scheme to steal trade secrets from Micron, an Idaho-based semi-conductor company,” said Attorney General Sessions. “Micron is worth an estimated $100 billion and has a 20 to 25 percent share of the dynamic random access memory industry—a technology not possessed by the Chinese until very recently. As this and other recent cases have shown, Chinese economic espionage against the United States has been increasing—and it has been increasing rapidly. I am here to say that enough is enough. With integrity and professionalism, the Department of Justice will aggressively prosecute such illegal activity.”
“The theft of intellectual property is not only unfair, but stifles technological innovation by disincentivizing investment in long-term research and development. The theft of intellectual property on a continuing basis by nation-state actors is an even more damaging affront to the rule of law,” said U.S. Attorney Alex Tse. “We in the Northern District of California, one of the world’s great centers of intellectual property development, will continue to lead the fight to protect U.S. innovation from criminal misappropriation, whether motivated by personal greed or national economic ambition.”
"The attempts by foreign governments to illegally obtain U.S. intellectual property and trade secrets pose a substantial threat to our national security and economy," said Special Agent in Charge John F. Bennett. "The San Francisco Bay Area, with its unique blend of human talent and innovative technologies, is often a target of economic espionage and theft of trade secrets by foreign individuals and governments. This indictment demonstrates the FBI's commitment to protecting American innovation, research, and development."
According to the indictment, the defendants were engaged in a conspiracy to steal the trade secrets of Boise, Idaho-based Micron Technology, Inc. (Micron), a leader in the global semiconductor industry specializing in the advanced research, development and manufacturing of memory products, including dynamic random-access memory (DRAM). DRAM is a leading-edge memory storage device used in computer electronics. In the worldwide DRAM supply, Micron holds approximately a 20-25% of the market share. Micron is the only United States-based company that manufactures DRAM. According to the indictment, Micron maintains a significant competitive advantage in this field due in large part from its intellectual property, including its trade secrets that include detailed, confidential information pertaining to the design, development, and manufacturing of advanced DRAM products.
Prior to the events described in the indictment, the PRC did not possess DRAM technology, and the Central Government and State Council of the PRC publicly identified the development of DRAM and other microelectronics technology as a national economic priority. The indictment describes the manner and means by which the defendants conspired to steal Micron’s intellectual property related to DRAM and convey it to a company controlled by the PRC government.
The criminal defendants are United Microelectronics Corporation (“UMC”), a Taiwan semiconductor foundry; Fujian Jinhua Integrated Circuit, Co., Ltd. (“Jinhua'”), a state-owned enterprise of the PRC; and three Taiwan nationals: Chen Zhengkun, a.k.a. Stephen Chen, age 55; He Jianting, a.k.a. J.T. Ho, age 42; and Wang Yungming, a.k.a. Kenny Wang, age 44. UMC is a publicly listed semiconductor foundry company traded on the New York Stock Exchange; is headquartered in Taiwan; and has offices worldwide, including in Sunnyvale, Calif. UMC mass produces integrated-circuit logic products based on designs and technology developed and provided by its customers. UMC did not possess advanced DRAM technology prior to misappropriating it from Micron.
Jinhua is a state-owned enterprise of the PRC, funded entirely by the Chinese government, and established in February 2016 for the sole purpose of designing, developing, and manufacturing DRAM. The indictment describes how UMC, Jinhua, and employees of both, conspired to bypass many years of research and development by illegally obtaining Micron’s proprietary technology. The DRAM technology at issue is based on research and development and other proprietary information worth at least hundreds of millions and up to billions of dollars.
According to the indictment, Chen was a General Manager and Chairman of an electronics corporation that Micron acquired in 2013. Chen then became the president of a Micron subsidiary in Taiwan, Micron Memory Taiwan (“MMT”), responsible for manufacturing at least one of Micron’s DRAM chips. Chen resigned from MMT in July 2015 and began working at UMC thereafter. While at UMC, Chen helped negotiate a cooperation agreement between UMC and Jinhua whereby, with funding from Jinhua, UMC would transfer DRAM technology to Jinhua to mass-produce. The technology would be jointly shared by both UMC and Jinhua. Chen became the head of UMC’s division tasked with fulfilling the terms of the cooperation agreement, namely developing DRAM technology to transfer to Jinhua. Chen later became the President of Jinhua and was put in charge of its DRAM production facility.
While at UMC, Chen recruited numerous MMT employees, including Ho and Wang, to join him at UMC. Prior to leaving MMT, Ho and Wang both stole and brought to UMC Micron trade secrets related to the design and manufacture of DRAM. For example, Ho and Wang stole confidential and proprietary materials pertaining to the past, current, and future generations of DRAM technology, some still in the research and development phase. Wang downloaded over 900 Micron confidential and proprietary files before he left MMT and stored them on USB external hard drives or in personal cloud storage, from where he could access the technology while working at UMC.
In sum, all defendants are charged with one count of conspiracy to commit economic espionage, in violation of 18 U.S.C. § 1831(a)(5); one count of conspiracy to commit theft of trade secrets, in violation of 18 U.S.C. § 1832(a)(5); and one count of economic espionage (receiving and possessing stolen trade secrets), in violation of 18 U.S.C. § 1831(a)(3). Additionally, Wang is charged with two counts of substantive economic espionage and Ho is charged with one count each of economic espionage and theft of trade secrets.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the individual defendants face a maximum sentence of 15 years imprisonment and a $5,000,000 fine for economic espionage charges, and 10 years imprisonment for theft of trade secrets charges. If convicted, each company faces forfeiture and a maximum fine of more than $20 billion. However, any sentence following conviction would 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.
The defendants have been summoned to appear on November 19, 2018 before U.S. Magistrate Judge Susan van Keulen.
In the civil complaint, the United States sues UMC, Jinhua, and Chen to enjoin them from exporting to the United States any products containing DRAM manufactured by Jinhua or UMC. The lawsuit also seeks an order preventing the civil defendants from transferring the trade secrets to anyone else. As authority for the lawsuit, the complaint cites 18 U.S.C. § 1836(a), a statute that permits the Attorney General to “obtain appropriate injunctive relief” against violations of 18 U.S.C. §§ 1831 and 1832.
This prosecution is a result of an investigation by the FBI. Substantial assistance was provided by Taiwan’s Ministry of Justice and the Ministry of Justice Investigation’s Bureau, MJIB.
Omak Man Sentenced to 115 Months in Federal Prison for Assault on a Colville Tribal OfficerRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Brandon Shea Marchand, age 44, of Omak, Washington, and an enrolled member of the Confederated Tribes of the Colville Reservation, was sentenced today after having pleaded guilty on September 25, 2018, to Assault on a Federal Officer Resulting in Bodily Injury. United States District Judge Rosanna Malouf Peterson sentenced Marchand to a 115-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison. The sentence was at the high end of the advisory range recommended by the United States Sentencing Guidelines.
According to information disclosed during court proceedings, a Colville Tribal Officer, who is an enrolled member of the Oglala Sioux Tribe in South Dakota, attempted to serve an arrest warrant on Marchand in February 2018, on the Colville Reservation. Marchand drove away on a four-wheeler, causing the officer to pursue him over wintry terrain while Marchand yelled he was not going to jail, and this would be an officer-assisted suicide call.
Marchand threatened the officer with a machete and a makeshift flame-thrower constructed out of a propane torch, and sprayed the officer with bear mace, hitting him in the face, eyes, and upper body. Marchand also threw a paint can at the officer’s head, causing lacerations and bleeding on his face and head. As Marchand admitted in court documents, his conduct recklessly created a substantial risk of death or serious bodily harm to the pursuing officer.
Marchand continued to refuse to comply with the pursuing officer’s instructions and started to enter a residence the officer believed contained weapons. The officer discharged his service weapon, hitting Marchand in the leg. The officer immediately administered first aid to Marchand, including applying a tourniquet around his leg, until first responders from the Okanagan County Sheriff’s Department and Omak Police Department could respond. The officer and Marchand were taken to separate hospitals to receive medical treatment. To prevent flight, Marchand was kept under watch at the hospital by the Lincoln County Sheriff’s Department, the Spokane Police Department, the Safe Streets Task Force, and the Federal Bureau of Investigation.
During the sentencing proceedings, Judge Peterson noted Marchand’s violent criminal history and years of drug use, and expressed appreciation to the Tribal officer for embracing the challenging task of acting as a law enforcement officer on the Colville Reservation. Judge Peterson observed that Marchand had not only created a dangerous situation by attempting to elude the officer, but he had also engaged in a years-long course of violent criminal conduct affecting numerous other individuals on the Colville Reservation.
United States Attorney Harrington said, “Tribal, local, state and federal law enforcement officers place themselves in harm’s way every day to protect the community. When individuals engage in criminal conduct and place our law enforcement officers and the public in danger of physical harm, it is a serious matter and warrants serious consequences. The sentence imposed holds Marchand accountable for his actions.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Colville Tribal Police Department and the Federal Bureau of Investigation. The case was prosecuted by David M. Herzog, an Assistant United States Attorney for the Eastern District of Washington.
Ohio Man Sentenced to Prison for Passing Counterfeit NotesRead the Press Release
ERIE, Pa. – A former resident of Ohio pleaded guilty and was sentenced in federal court to one year and a day in jail, and ordered to make $4,000 in restitution on his conviction of passing and uttering counterfeit money, obligations, or securities, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on David Edward Johnson, 51.
According to information presented to the court, on eight separate dates, Johnson passed 65 counterfeit United States Federal Reserve notes in Western Pennsylvania.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Secret Service, the Millcreek Township Police Department and the Pennsylvania State Police for the investigation leading to the successful prosecution of Johnson.
New York State Lobbyist Arrested, Charged with BriberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Robert Scott Gaddy, 48, of Albany, NY, was arrested and charged by criminal complaint with bribery concerning programs receiving federal funds, and honest services wire fraud. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, the defendant, a lobbyist registered with the State of New York, owns and operates the lobbying firm Excelsior Advocates, LLC. At various times, Excelsior Advocates maintained lobbying contracts with the Rochester Genesee Regional Transportation Authority, and the Rochester City School District.
During an investigation into allegations of fraud and corruption involving a large re-development project in the City of Rochester, the FBI identified potential corrupt acts by Gaddy and various public officials. As a result, special agents began an investigation into the relationship between the defendant and New York State Assemblyman Joseph Errigo.
Working with an individual known to the FBI, special agents arranged for that individual to approach Gaddy about paying a bribe to Member A in order to introduce certain legislation.
On September 4, 2017, the individual met with Gaddy who and stated that he represented a wealthy client who wanted to stop the proposed development in Monroe County and was willing to pay $15,000 in order to do so. The defendant responded, “Yeah . . . yeah, no problem.” Over the next few weeks, the individual met with Gaddy to discuss and plan the bribery scheme, including the roles of Assemblyman Joseph Errigo and another assembly member identified as Member A.
On February 9, 2018, Gaddy arranged for a meeting between the individual and Errigo at Errigo’s Pittsford, NY office. During that meeting, the individual gave $1,500 cash to Errigo and $2,500 to Gaddy. On March 16, 2018, the individual gave Errigo another $2,000.
On March 27, 2018, Errigo introduced a bill consisting of the proposed legislation, which was assigned bill number A10227. The individual paid Gaddy another $2,000. On April 13, 2018, the individual paid Errigo another $2,000.
The individual paid Errigo and Gaddy a total of $10,500 to obtain the introduction of proposed legislation in the New York State Assembly, and begin the process of obtaining passage of a State law.
Joseph Errigo was arrested on October 10, 2018, and also charged with bribery concerning programs receiving federal funds, and honest services wire fraud.“The people of Western New York, like all our citizens, deserve to have representatives who act in the public’s interest, not for their own personal financial gain,” noted U.S. Attorney Kennedy. “Where, as alleged here, legislative acts are undertaken not on their merits but in exchange for the payment of bribes and in hopes of personal financial gain, then all involved in the corruption of our legislative process ought to expect to face criminal charges.”
“Today's complaint, like other recent cases, highlights a common theme: bribery crimes are fueled by greed,” said Gary Loeffert, Special Agent-in-Charge of the FBI's Buffalo Office. “A bribe is a bribe - plain and simple. Public corruption is the FBI's top criminal priority for good reason. When a person or group can buy legislation by bribing a public official, it is the community and constituents who suffer and the public official who benefits.”
The defendant made an initial appearance before U.S. Magistrate Judge Marian W. Payson and was released. Gaddy is due back in court on December 18, 2018, for a status conference.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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New Orleans Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
U.S. Attorney Peter G. Strasser announced that ELTON WILLIAMS, age 28, of New Orleans, pleaded guilty today before United States District Judge Nannette Jolivette Brown, to conspiracy to possess with the intent to distribute heroin, cocaine hydrochloride, marijuana, and Tramadol.
According to court documents, ELTON WILLIAMS, an inmate at the Orleans Justice Center jail, solicited the assistance of his relative, Ciboney Parker (a civilian employee of the Orleans Parish Sheriff’s Office), and two friends, Brittany Theophile and Rachelle Kelson, to smuggle drugs into the jail. Theophile and Kelson provided the drugs, including marijuana, heroin, and Tramadol, to Parker during her work shift. The Orleans Parish Sheriff’s Office Intelligence Division became aware of the plan through audio and visual surveillance and detained Parker before she could gain access to WILLIAMS. Theophile and Kelson pleaded guilty and await sentencing. Parker is scheduled to plead guilty on December 4, 2018.
WILLIAMS faces a maximum term of imprisonment of twenty (20) years, is subject to a fine of up to $1,000,000, and, upon release, will serve a three (3) year term of supervised release. Sentencing before Judge Brown is scheduled for February 7, 2019.
U.S. Attorney Peter Strasser praised the work of the FBI and the Orleans Parish Sheriff’s Office Investigative Service Bureau. Assistant United States Attorney Tracey Knight is in charge of this prosecution.
Munhall Man Pleads Guilty in Shadyside/North Oakland Stolen Packages SchemeRead the Press Release
PITTSBURGH, PA- A resident of Munhall, Pa., pleaded guilty in federal court to charges of conspiracy and mail theft, United States Attorney Scott W. Brady announced today.
Christopher Eric Carr, 46, pleaded guilty to four counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that from February through May of 2018, Carr, along with his co-defendant Ron Matthew Sharp, entered multiple apartment buildings in the Shadyside and North Oakland areas of Pittsburgh, and opened United States Postal Service packages or other mail items that were not addressed to them, stole packages, and stole items from within packages that had been left at authorized mail depositories. Defendants then provided items they had stolen from the mail, including gift cards, to others, who redeemed the gift cards at various locations, including Giant Eagle and GETGO. Defendants also re-sold, and instructed others to attempt to re-sell, items defendants had stolen from the mail.
Judge Bissoon scheduled sentencing for March 12, 2019, at 11 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Carr remains incarcerated pending the sentencing hearing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the United States Department of Homeland Security conducted the investigation leading to the prosecution of Christopher Eric Carr.
Monmouth County, New Jersey, Doctor Charged with Illegally Distributing Prescription Controlled SubstancesRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, doctor to appear in court today on charges of illegally prescribing prescription drugs, U.S. Attorney Craig Carpenito announced.
Martin Fried, 60, a pediatric gastroenterologist in Ocean Township, New Jersey, was charged in a three-count complaint with attempting to distribute oxycodone and distribution of Adderall and Xanax outside the usual course of professional practice and not for a legitimate medical purpose. Fried is scheduled to make his initial appearance today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to documents filed in this case and statements made in court: Fried owned and was the sole practitioner at a medical practice, Healthy Days LLC, specializing in pediatric gastroenterology, and touting specialties in “nutrition,” “Lyme disease and co-infection,” and “genetic/DNA testing.”
On July 20, 2018, Fried accompanied two men – referred to in the complaint as “Individual-1” and “Individual-2” – to two pharmacies in the area of Toms River, New Jersey, to obtain oxycodone, a Schedule II controlled substance; Adderall, a Schedule II controlled substance; and alprazolam, a Schedule IV controlled substance, using prescriptions Fried had written. When the first pharmacy refused to fill the prescriptions, Fried and the two men went to a second pharmacy. Fried prescribed the controlled substances to Individual-1 and Individual-2 outside the usual course of professional practice and with no legitimate medical purpose.
Two days earlier, Fried had accompanied the same two men to another pharmacy obtain Adderall, Xanax, and gabapentin, using prescriptions he had written. Based on Fried’s prescriptions, Individual-1 obtained approximately 120 tablets of Adderall, 90 tablets of Xanax, and 120 tablets of gabapentin (a drug commonly abused with opioids because it enhances the euphoria caused by the opioid). The drugs were prescribed by Fried outside the usual course of professional practice and with no legitimate medical purpose.
On July 31, 2018, Fried surrendered to the U.S. Drug Enforcement Administration his DEA registration to prescribe controlled substances. In a consent order with the N.J. Board of Medical Examiners filed in September, Fried agreed to an indefinite suspension of his medical license, pending a future demonstration of his fitness to practice, and further action by the Board.
Each count of the complaint is punishable by a maximum of 20 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greater.U.S. Attorney Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Valerie Nickerson in Newark, with the investigation leading to the charges.
The government is represented by Special Assistant U.S. Attorney Colin J. Keiffer of the U.S. Attorney’s Office Opioid Abuse Prevention and Enforcement Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Matthew Adams Esq., Morristown, New Jersey
Mobile Man Sentenced to 95 Months for Possession with the Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Senior Judge Callie V. S. Granade sentenced Anthony Lee Mitchell on October 22, 2018 to serve a term of imprisonment of 95 months followed by 5 years of supervised release for possession with the intent to distribute methamphetamine in violation of Title 21 USC § 841(a)(1). The defendant previously pled guilty to the offense on July 23, 2018.
According to admissions the defendant made as part of his guilty plea, on May 9, 2017, Mobile Police Department officers received a complaint of a man breaking into a house. Officers responded to the location and they stopped Mitchell in a vehicle leaving the house. Mitchell gave a false name to officers by providing his brother’s name, who had active arrest warrants. Officers arrested Mitchell and received consent to search his vehicle. Officers found approximately 48 grams of methamphetamine in the vehicle. Mitchell was read his rights and he admitted that another man “fronted” him the methamphetamine and that he still owed over $1,200 to the man that fronted him the methamphetamine. Fronting drugs means the supplier provides the drugs to the buyer essentially on credit. The buyer then sells the drugs to generate the money to pay the supplier and also to make some profit.
The case was investigated by Mobile Police Department and referred for federal prosecution through the Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDETF) Lead Attorney, George F. May for the United States Attorney’s Office for the Southern District of Alabama.
Michigan Man Sentenced to 46 Months in Prison for Dog Fighting ConspiracyRead the Press Release
Damiane Buehrer, 40, of North Adams, Michigan, was sentenced to 46 months in prison for his role in a dog fighting conspiracy based in the surrounding counties of Grand Rapids, Michigan, by U.S. District Court Judge Paul L. Maloney yesterday. His prison term will be followed by three years of supervised release.
Buehrer pleaded guilty in June 2018 to one felony count of conspiracy to sponsor and exhibit a dog in a dog fight and unlawful possession of dogs intended to be used for the purpose of dog fighting. The Justice Department’s Environment and Natural Resources Division and U.S. Attorney Andrew Byerly Birge of the Western District of Michigan made the announcement.
“Damiane Buehrer and his codefendants participated in a sick and brutal underground activity that, because of its interstate and international nature, is subject to Federal criminal jurisdiction” stated U.S. Attorney Birge. “Because of the uniquely barbarous and cruel nature of this activity, my Office, along with the rest of the West Michigan law-enforcement community, is committed to investigating, punishing and deterring criminals like Buehrer and his coconspirators.”
Buehrer and four co-defendants were indicted in a superseding indictment on April 18, 2018, for one conspiracy count and multiple counts of unlawful possession of animals intended to be used for the purpose of dog fighting. The remaining co-defendants, including Charles Joseph Miller, Kian Maliak Miller, Charles Deon Davis Jr., and Jarvis Jason-Roy Askew, have pleaded guilty and are awaiting sentencing.
Between November 14, 2016, and December 7, 2017, as part of the conspiracy, Buehrer acquired and kept four dogs for the purposes of breeding, training, conditioning, and developing dogs for participation in dog fighting. The dogs, together with those owned by his co-conspirators, for a total of 37 dogs, were seized by law enforcement as part of the investigation. Buehrer was also found to possess medication for the purpose of treating dogs for wounds received during dog fighting, as well as equipment for training the dogs, including treadmills, weighted chains, break sticks, spring cables, flirt poles, and a jenny mill. The co-defendants frequently exchanged electronic communications for the purpose of sharing information about training and conditioning dogs for fighting, breeding fighting dogs, contracting for and sponsoring dog fights, collecting forfeited funds when a contracted dog fight resulted in a forfeit, and sharing results of dog fights.
The government is represented by Assistant U.S. Attorneys Kate Zell and Hagen Frank, and Senior Trial Attorney Jennifer Blackwell of the Justice Department’s Environmental Crimes Section. The case is being investigated by the U.S. Department of Agriculture – Office of Inspector General, the Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, and Firearms, and the Ingham County Animal Control Office. The ASPCA assisted with the care of the dogs seized by federal law enforcement.
Mexican National Man Sentenced for Immigration CrimeRead the Press Release
Defendant had four prior deportations to Mexico
BECKLEY, W.Va. – A Mexican national man was sentenced to “time served” after his guilty plea to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Alonso Tapia-Gomez has been incarcerated since May 15, 2018. Tapia-Gomez was immediately remanded to ICE custody for deportation proceedings. Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement (ICE) and the West Virginia State Police.
“What a revolving door,” said United States Attorney Mike Stuart. “Tapia-Gomez is being deported now for the fifth time. One would think he would have gotten the message by now. He needs to get in line and follow our laws.”
On May 15, 2018, Tapia-Gomez was found in Beckley, Raleigh County, West Virginia. Specifically, agents with ICE received a cellular phone call from the West Virginia State Police about an individual in a traffic stop who was possibly in the United States illegally. This suspicion was based on a Mexican identification document that was given to the West Virginia State Police trooper by Tapia-Gomez. Pursuant to this phone call and request for assistance, ICE agents immediately spoke with Tapia-Gomez telephonically. Tapia-Gomez admitted to being in the United States illegally. ICE agents responded to the scene and took Tapia-Gomez into federal custody. Agents again confirmed in person that Tapia-Gomez was not in the United States legally.
Tapia-Gomez’s fingerprints matched him to four prior encounters where he was found in the United States illegally and deported from the United States to Mexico. Tapia-Gomez again illegally reentered the United States prior to his arrest in 2018. Tapia-Gomez had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Tapia-Gomez also admitted to ICE agents that he was a Mexican citizen.
Assistant United States Attorney Erik S. Goes was responsible for the prosecution. United States District Judge Irene C. Berger presided over the hearing.
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Mexican National Man Pleads Guilty to Immigration CrimeRead the Press Release
Defendant had four prior deportations to Mexico
CHARLESTON, W.Va. – A Mexican national man entered a guilty plea to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Arturo Chagala-Chigo faces up to two years of incarceration when he is scheduled to be sentenced on March 6, 2019. Chagala-Chigo is also subject to deportation proceedings at the conclusion of any sentence. Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement (ICE).
“Several prior deportations,” said United States Attorney Mike Stuart. “How many times does someone need to be deported before they take the proper and appropriate steps to legally enter this country?”
On September 13, 2018, Chigala-Chigo was found in Summersville, Nicholas County, West Virginia by members of ICE after receiving a tip that individuals were in the country illegally and working in the area. Pursuant to this investigation, ICE agents approached Chagala-Chigo and he surrendered to them. Agents immediately confirmed that Chagala-Chigo was not in the United States legally, and took him into federal custody.
Chagala-Chigo’s fingerprints matched him to four prior encounters where he was found in the United States illegally and deported from the United States to Mexico. He was also previously convicted of illegally entering the United States in September 12, 2015 in the Southern District of Texas. Chagala-Chigo illegally reentered the United States prior to his capture in 2018. Chagala-Chigo had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Chagala-Chigo also admitted to ICE agents that he was a Mexican citizen
Assistant United States Attorneys Drew Inman and Erik S. Goes are responsible for the prosecution. Senior United States District Judge David A. Faber presided over the hearing.
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Mercer County, New Jersey, Man Sentenced to 100 Months in Prison for Armed Robbery Spree of Electronics Stores in New Jersey and PennsylvaniaRead the Press Release
CAMDEN, N.J. – A Trenton, New Jersey, man was sentenced today to 100 months in prison for robbing Metro PCS stores in Willingboro, New Jersey, Lumberton, New Jersey, and Levittown, Pennsylvania, in September and October 2016, U.S. Attorney Craig Carpenito announced.
Rodney Day, 27, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to commit Hobbs Act robberies. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Sept. 29, 2016, Day, Zeldrick Nance, 31, of Trenton, and Lisa Anderson, 35, of Griffithville, Arkansas, drove to the Willingboro Metro PCS Store. Day brandished what appeared to be a firearm while Nance duct taped the store occupants and placed them into a store bathroom. Meanwhile, Anderson stole cellular telephones and money from the cash registers. During the robbery, Day demanded the keys to a car owned by one of the victims. Day, Nance, and Anderson fled with the stolen cellular telephones and money in that stolen car.
On Oct. 7, 2016, Day, Nance, and Anderson drove to the Lumberton Metro PCS Store. Day brandished what appeared to be a firearm while Nance duct taped a store occupant, put that victim in a storage room, and took the victim’s wallet and keys. Meanwhile, Anderson stole cellular telephones and money from the cash registers.
On Oct. 12, 2016, Day, Nance, and Anderson drove to the Levittown Metro PCS Store. Day once again brandished what appeared to be a firearm while Nance duct taped the victims inside the store and put them in a store bathroom. Anderson subsequently entered the store and stole cellular telephones and money from the cash registers.
In addition to the prison term, Judge Rodriguez sentenced Day to three years of supervised release and ordered to pay $26,307 in restitution.
Nance has previously pleaded guilty and is scheduled to be sentenced Nov. 8, 2018. Anderson has previously pleaded guilty to her role in the robberies and is currently scheduled for sentencing on Nov. 13, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the Willingboro, Lumberton, and Levittown police departments, as well as the Burlington and Mercer County Prosecutor’s Offices for their assistance in this case.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.Defense counsel: Peter A. Levin Esq., Philadelphia
Married Couple Indicted for Conspiracy to Sexually Exploit a Two-Year Old ChildRead the Press Release
SYRACUSE, NEW YORK – Amber Decker, 24, of Philadelphia, New York and her husband, Logan Decker, 26, of Sioux, Falls, South Dakota, were indicted yesterday by a federal grand jury for conspiring to sexually exploit a two-year old child, announced United States Attorney Grant C. Jaquith and James Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The indictment alleges that from July to September, 2018 the Deckers conspired with one another to use the child to engage in sexually explicit conduct for the purpose of producing visual depictions of the abuse.
Amber Decker was arraigned in federal court today and was ordered detained pending resolution of her case. Logan Decker is currently incarcerated in Sioux Falls, South Dakota, on related charges, and will be transported to federal court in Syracuse for prosecution.
The charge filed against the Deckers carries a mandatory minimum sentence of 15 years, and a maximum sentence of 30 years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. If convicted, the Deckers will be required to register as sex offenders.
The charge in the indictment is merely an accusation. The defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the Federal Bureau of Investigation (FBI), the New York State Police, the Jefferson County Sheriff’s Office and the Sioux Falls, South Dakota Police Department, and is being prosecuted by Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York.
Marijuana Distributor Sentenced to Two Years in Prison for Tax FraudRead the Press Release
SAN FRANCISCO – Charles T. Woods was sentenced today to 24 months in prison, and ordered to pay a fine of $10,000 and restitution of $466,707 for willfully filing a false individual income tax return with the Internal Revenue Service, announced United States Attorney Alex G. Tse, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, and Internal Revenue Service (IRS), Criminal Investigation, Acting Special Agent in Charge Tara Sullivan. The sentence was handed down by the Honorable Susan Illston, U.S. District Judge.
Woods, 44, of Santa Rosa, Calif., pleaded guilty to the charge on May 25, 2018. In pleading guilty, Woods admitted he engaged in marijuana distribution in 2012, 2013, and 2014, and that he knowingly and willfully filed federal tax returns for those years that underreported income from his marijuana distribution. For all three years, Woods consistently reported business gross receipts on his tax returns of under $85,000 per year despite earning hundreds of thousands of dollars more. To evade bank currency transaction reporting requirements and to conceal his income, Woods deposited more than $1 million into numerous bank accounts under his control in amounts less than $10,000. In total, Woods failed to report more than $1.1 million in gross receipts from his marijuana distribution business, which resulted in a tax loss of $466,707 to the United States.
Woods was charged by information on April 25, 2018, with two counts of willfully making and subscribing a false tax return to the Internal Revenue Service, in violation of 26 U.S.C § 7206(1). He pleaded guilty to one count.
In addition to the prison term, Judge Illston also ordered the defendant to serve a year of supervised release following his prison term. Judge Illston ordered the defendant to surrender on or before January 11, 2019, to begin serving his sentence.
Assistant U.S. Attorney José A. Olivera and U.S. Department of Justice, Tax Division, trial attorney Christopher Magnani are prosecuting this case with the assistance of Kathy Tat and Larry Garland. The prosecution is the result of an investigation by IRS Criminal Investigation.
Man Sentenced to Prison for Role in Firearms Trafficking SchemeRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 33 months in prison for his role in a firearms trafficking scheme.
According to court documents, Jason Fields, 28, illegally purchased a total of 13 firearms in 10 separate transactions on three different days in the summer of 2016 from federally licensed firearms dealers. For each transaction, Fields represented on forms required for the transactions that he was the true purchaser of the firearms, when he was actually purchasing the firearms for other individuals. Fields later told authorities that the individuals told him they were from Washington, D.C., which would have made their transactions in Virginia illegal.
At sentencing, the Court applied a sentencing enhancement, finding that Fields knew or should have known that the individuals for whom he obtained the firearms intended to dispose of the firearms unlawfully. Indeed, three of the firearms were subsequently recovered by police officers in Richmond, Prince George County, Maryland; and Washington, D.C. The other 10 firearms have not been recovered.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Stephen W. Miller 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. 3:18-cr-43.
Malaysian Financier Low Taek Jho, Also Known as “Jho Low,” and Former Banker Ng Chong Hwa, Also Known as “Roger Ng,” Indicted for Conspiring to Launder Billions of Dollars in Illegal Proceeds and to Pay Hundreds of Millions of Dollars in BribesRead the Press Release
A three-count criminal indictment was unsealed today in federal court in the Eastern District of New York charging Low Taek Jho, 36, also known as “Jho Low,” and Ng Chong Hwa, 51, also known as “Roger Ng,” with conspiring to launder billions of dollars embezzled from 1Malaysia Development Berhad (1MDB), Malaysia’s investment development fund, and conspiring to violate the Foreign Corrupt Practices Act (FCPA) by paying bribes to various Malaysian and Abu Dhabi officials. As part of the three-count indictment, Ng is also charged with conspiring to violate the FCPA by circumventing the internal accounting controls of a major New York-headquartered financial institution (Financial Institution), which underwrote more than $6 billion in bonds issued by 1MDB in three separate bond offerings in 2012 and 2013, while Ng was employed at the Financial Institution as a managing director. Ng was arrested earlier today in Malaysia, pursuant to a provisional arrest warrant issued at the request of the United States. Low remains at large.
Also unsealed today in federal court in the Eastern District of New York was the guilty plea of Tim Leissner, 48, the former Southeast Asia Chairman and participating managing director of the Financial Institution, to a two-count criminal information charging Leissner with conspiring to launder money and conspiring to violate the FCPA by both paying bribes to various Malaysian and Abu Dhabi officials and circumventing the internal accounting controls of the Financial Institution while he was employed by it. According to court filings, Leissner has been ordered to forfeit $43.7 million as a result of his crimes.
Principal Deputy Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI New York Field Office, and Special Agent in Charge R. Damon Rowe of IRS Criminal Investigation (IRS-CI) Los Angeles Field Office announced the charges.
The Criminal Scheme
1MDB is a Malaysian state-owned and controlled fund created to pursue investment and development projects for the economic benefit of Malaysia and its people. As alleged in court filings, between approximately 2009 and 2014, as 1MDB raised money to fund its projects, billions of dollars were misappropriated and fraudulently diverted from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions that it executed with the Financial Institution. As part of the scheme, and as alleged in court filings, Low, Ng, Leissner, and others conspired to bribe government officials in Malaysia, including at 1MDB, and Abu Dhabi to obtain and retain lucrative business for the Financial Institution, including the 2012 and 2013 bond deals. They also allegedly conspired to launder the proceeds of their criminal conduct through the U.S. financial system by purchasing, among other things, luxury residential real estate in New York City and elsewhere, and artwork from a New York-based auction house, and by funding major Hollywood films.
As alleged, Low’s close relationships with high-ranking government officials in Malaysia and Abu Dhabi were central to the scheme. Ng, Leissner, and others at the Financial Institution allegedly knew Low was close to these government officials, including a high-ranking Malaysian government official who had authority to approve 1MDB business decisions (Malaysian Official #1). According to allegations in court filings, beginning in approximately 2009 and continuing through 2014, Low, Ng, Leissner, and the other co-conspirators used Low’s relationships to obtain and retain business for the Financial Institution through the promise and payment of hundreds of millions of dollars in bribes, including to ensure 1MDB awarded the Financial Institution a role on three bond transactions known internally at the Financial Institution as “Project Magnolia,” “Project Maximus,” and “Project Catalyze.” As a result of its work for 1MDB during that time, the Financial Institution allegedly received approximately $600 million in fees and revenues along with increased reputational prestige. At the same time, Ng, Leissner and others allegedly received large bonuses and enhanced their own reputations at the Financial Institution. In total, according to allegations in court filings, more than $2.7 billion was misappropriated from 1MDB and Low, Ng, Leissner and others conspired to launder this money through the U.S. financial system to pay bribes to foreign officials and for the personal benefit of themselves and their relatives.
Project Magnolia
In early 2012, according to allegations in court filings, following a series of meetings in Malaysia and the United Kingdom, Low, Leissner, Ng and the co-conspirators agreed that, with the assistance of the Financial Institution, 1MDB would issue $1.75 billion in bonds guaranteed by an entity wholly-owned and controlled by the government of Abu Dhabi. Low allegedly explained to Ng, Leissner, and others at the time that, to complete the transaction, bribes would need to be paid to officials in Malaysia and Abu Dhabi and hundreds of millions of dollars were allegedly paid to officials in these countries. Court filings also allege that Low, Ng, Leissner, and other co-conspirators knew that Low intended to use funds misappropriated from the bond transaction to bribe and influence the officials to obtain the necessary approvals and any additional assistance to execute Project Magnolia for the Financial Institution and to pay kickbacks to Ng, Leissner, and others.
In or around March 2012, 1MDB allegedly selected the Financial Institution to be the sole bookrunner and arranger for Project Magnolia. As part of the scheme, Low and other co-conspirators allegedly enlisted the assistance of 1MDB officials, promising to pay them bribes and kickbacks. In one instance, as alleged in court filings, in connection with Project Magnolia, Low told one 1MDB official that he would “[g]ive [the official a] big present” when the transaction closed. According to allegations in court documents, the fact that bribes and kickbacks were being paid in connection with Project Magnolia was known to Ng, Leissner, and other employees of the Financial Institution.
After Project Magnolia closed on or about May 21, 2012, more than $500 million of the bond proceeds were allegedly misappropriated and diverted from 1MDB through numerous wire transfers to bank accounts in the name of shell companies beneficially owned and controlled by Low, Leissner, Ng, and other co-conspirators, including a high-level official at the Abu Dhabi entity that guaranteed the Project Magnolia bonds and a close relative of Malaysian Official #1. As alleged, the bond proceeds transferred to Malaysian Official #1’s close relative were later used by the relative’s U.S. motion picture company to assist in the production of the film “The Wolf of Wall Street.”
Project Maximus and Project Catalyze
Court filings further allege that from May 2012 and continuing through 2013, Low, Ng, Leissner, and their co-conspirators continued to work to ensure that the Financial Institution obtained and retained additional 1MDB business, including the bond transactions known as “Project Maximus” and “Project Catalyze,” which transactions generated substantial fees and revenues for the Financial Institution. As alleged, although both transactions were designed to raise more than $4 billion for 1MDB’s investment and development projects, Low, Ng, Leissner, and other co-conspirators used the transactions to further the criminal scheme, ultimately laundering hundreds of millions of dollars of diverted funds from these transactions into bank accounts beneficially owned and controlled by, among others, the co-conspirators, including Low, Leissner and officials in Malaysia and Abu Dhabi. As alleged in court filings, throughout this time, Ng, Leissner, and at least one other employee of the Financial Institution knew that Low would and did pay bribes to influence officials in Malaysia and Abu Dhabi to obtain the necessary approvals to execute Project Maximus and Project Catalyze. Low, Ng, Leissner, and others also allegedly knew that large portions of the bond proceeds would be illegally diverted to themselves and others, including to foreign government officials.
As part of the scheme alleged in court filings, Low, Ng, Leissner and other co-conspirators again used a series of wire transfers to launder billions of dollars of misappropriated and fraudulently diverted funds from Project Maximus and Project Catalyze. Following the close of Project Maximus, approximately $790 million of the bond proceeds was allegedly transferred through a series of shell company accounts beneficially owned and controlled by Low, Leissner and others, including accounts of officials in Malaysia and Abu Dhabi. In particular, Leissner and Ng allegedly caused millions of dollars of these funds to be transferred to accounts of 1MDB officials or relatives of such officials in exchange for their assistance in obtaining and retaining business for the Financial Institution. Over $35 million of the bond proceeds also allegedly was used by a co-conspirator to help acquire a condominium in New York, New York beneficially owned by Low.
Similarly, according to allegations in court filings, after Project Catalyze closed in March 2013, more than $1 billion of diverted funds, traceable to the transaction, were laundered, at Low’s direction, to bank accounts in the name of entities beneficially owned and controlled by Low, Leissner, and others, including 1MDB officials. As alleged, more than $4 million of the funds were transferred to a bank account beneficially owned by a relative of Ng. Additionally, as part of the scheme, Low allegedly used a shell company account to receive more than $1 billion of the Project Catalyze bond proceeds and spent approximately $137 million of these funds to purchase works of art at a high-end art auction house in New York, New York.
Post-Catalyze 1MDB Transactions at the Financial Institution
The Financial Institution continued to seek business from 1MDB after Project Catalyze. As alleged, Leissner and others were particularly focused on securing a role for the Financial Institution on a proposed initial public offering (IPO) of 1MDB’s energy assets. To influence certain officials to award the Financial Institution a role in the proposed IPO, Low and Leissner allegedly continued to pay bribes to certain officials at 1MDB.
For example, as alleged, in an online chat between Low and Leissner in June 2014, Low and Leissner discussed the need to “suck up to” a 1MDB official and to send “cakes” to a person believed to be the wife of Malaysian Official #1. A few months after this chat, a bank account owned and controlled by Leissner and his relative was used to transfer approximately $4.1 million to a high-end New York jeweler, in part, to pay for gold jewelry for the wife of Malaysian Official #1.
The charges in the indictment as to Low and Ng are merely allegations, and those defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was jointly conducted by the FBI’s International Corruption Unit and IRS-CI. The government’s criminal case is being handled by the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Fraud Section and the Business and Securities Fraud Section of the U.S. Attorney’s Office for the Eastern District of New York. MLARS Trial Attorneys Jennifer E. Ambuehl, Woo S. Lee, and Mary Ann McCarthy, Fraud Section Trial Attorneys Katherine A. Nielsen and Nikhila Raj, and Assistant U.S. Attorneys Jacquelyn M. Kasulis and Drew Rolle of the Eastern District of New York are prosecuting the case. Additional Criminal Division Trial Attorneys and Assistant U.S. Attorneys within U.S. Attorney’s Offices for the Eastern District of New York and Central District of California have provided valuable assistance with various aspects of this investigation, including with civil and criminal forfeitures.
The Criminal Division’s Office of International Affairs provided critical assistance in this case. The Department also appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission and the Board of Governors of the Federal Reserve System along with the Federal Reserve Bank of New York. The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg, and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The International Unit of the Criminal Division’s MLARS is home to the Kleptocracy Asset Recovery Initiative—a team of dedicated prosecutors working to prosecute individuals and forfeit the proceeds of foreign official corruption that has affected the U.S. financial system and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office. MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
The Defendants:
LOW TAEK JHO and NG CHONG HWA
E.D.N.Y. Docket No. 18-CR-538 (MKB)
TIM LEISSNER
E.D.N.Y. Docket No. 18-CR-439 (MKB)