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Monday 24 September 2018
Drug Policy Office Announces New Counties to Receive Federal Support for Combating Drug TraffickingRead the Press Release
Washington, D.C.—Today, James Carroll, Deputy Director of the Office of National Drug Control Policy, announced the designation of 10 new areas across Kentucky, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, and West Virginia as High Intensity Drug Trafficking Areas (HIDTAs). This designation enables the 10 areas to receive Federal resources to further the coordination and development of drug control efforts among Federal, State, local, and tribal law enforcement officers, and allows local agencies to benefit from ongoing HIDTA initiatives that are working to reduce drug trafficking across the United States.
The newly-designated areas are:
- Allegheny, Beaver, and Washington Counties in Pennsylvania as part of the Ohio HIDTA
- Atlantic County in New Jersey as part of the Liberty Mid-Atlantic HIDTA
- Butler County in Ohio as part of the Ohio HIDTA
- Charleston County in South Carolina and the Eastern Band of Cherokee Indian Reservation in North Carolina as part of the Atlanta/Carolinas HIDTA
- Mineral County in West Virginia as part of the Washington/Baltimore HIDTA
- Montgomery and Powell Counties in Kentucky as part of the Appalachia HIDTA
“Drug traffickers are fueling the opioid crisis and poisoning our communities, so we have to be relentless in bringing them to justice,” Carroll said. “This new funding will allow law enforcement to disrupt trafficking operations in key areas so we can save lives, strengthen our communities, and safeguard our country.”
The HIDTA program was created in 1988 and serves as a catalyst for coordination among Federal, State, local, and tribal law enforcement agencies operating in areas determined to be critical drug trafficking regions. Law enforcement organizations working within HIDTAs assess drug-trafficking problems and design specific initiatives to decrease the production, transportation, and distribution of drugs.There are 29 HIDTAs located in 50 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.
Department of Justice, EPA Settle with Derive Systems over Aftermarket Emissions Defeat Devices in VehiclesRead the Press Release
Today, the U.S. Department of Justice and U.S. Environmental Protection Agency (EPA) announced a settlement with Derive Systems (Derive) addressing the sale of approximately 363,000 aftermarket products which the United States alleges were designed, in part, to defeat the emissions control systems of cars and trucks in violation of the Clean Air Act.
Over a span of multiple years, Derive sold products, including custom engine tuning software and parts, online and at distributers across the nation under the brand names of “Bully Dog” and “SCT” for use in many types of gasoline and diesel-fueled cars and trucks. Under the terms of the settlement, Derive will spend approximately $6.25 million to bring the company and its products into compliance with the Clean Air Act. Derive will also pay a civil penalty of $300,000.
“For decades, Americans have worked hard to significantly reduce harmful emissions from cars and trucks. Tremendous progress has been made and the air is much cleaner today across the nation. Unfortunately, not everyone is playing by the rules. Today’s settlement will bring Derive Systems and its aftermarket products into compliance with the Clean Air Act, and demonstrates to other manufacturers that products designed to unlawfully thwart vehicle emissions control systems will not be tolerated,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The Department of Justice will continue to work with our partners at EPA to hold companies who violate environmental laws accountable, and to protect clean air for all Americans.”
“Manufacturers and sellers of automotive emissions control defeat devices should stand up and take notice of this settlement,” said Susan Bodine, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “EPA will protect air quality by vigorously enforcing the Clean Air Act’s prohibition on these devices.”
Derive manufactured and sold custom tuning software designed to access and overwrite the original vehicle manufacturer’s software. Vehicle manufacturers design vehicle software to reduce air pollution, monitor the vehicle’s on-board diagnostics of emissions controls, and otherwise comply with the Clean Air Act. Derive’s software enabled the user to remove emission control components that reduce tailpipe emissions, including catalysts, diesel particulate filters, exhaust gas recirculation systems, elements of on-board diagnostic systems, and other elements of design certified by vehicle manufacturers to comply with the Clean Air Act.
In addition, Derive sold parts or components for motor vehicles and motor vehicle engines that bypass, defeat, or render inoperative elements of design that were installed by the vehicle or engine manufacturer to comply with Clean Air Act emission standards. These handheld products—commonly known as “tuners”—enabled the user to easily turn off emission controls installed and certified by vehicle manufacturers to comply with the Clean Air Act.
Under the terms of the settlement, Derive must stop introducing new noncompliant tuners into commerce and retrofit existing tuners so that they comply with the Clean Air Act. All new and existing tuners offered for sale must have a reasonable basis demonstrating that the use of the products will not adversely affect vehicle emissions. Besides tuners, Derive must limit access to key emission control parameters in their custom tuning software and create a customer verification program for users of the custom tuning software, which includes training about vehicle functions, emission controls, and the Clean Air Act requirements. Derive must stop any marketing that would provide information on how consumers can defeat emission controls in their vehicles, and work with their national distributors to prevent the packaged sale of their products with companion defeat devices. Derive must train their employees to comply with the Clean Air Act. Derive must also pay a penalty of $300,000 based on the company’s demonstrated limited ability to pay a larger amount.
The proposed settlement is subject to a 30-day public comment period and final court approval, and will be lodged in the U.S. District Court for the District of Columbia. To view the consent decree or to submit a comment, visit the department’s website at: www.justice.gov/enrd/Consent_Decrees.html.
Department of Justice will Award more than $10 Million to Support Crime Reduction Efforts in Jurisdictions across the United States, including over $1.1 Million to MemphisRead the Press Release
Memphis, TN – Attorney General Jeff Sessions today announced grant awards to Public Safety Partnership member sites as part of $10 million in funding to support state, local, tribal law enforcement departments, agencies, and their partners who are fighting violent crime in jurisdictions across the United States.
The Office of Justice Programs’ Bureau of Justice Assistance, in partnership with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, is awarding $5 million under the Local Law Enforcement Crime Gun Intelligence Center Integration Initiative to encourage local jurisdictions to use intelligence, technology and community engagement to identify unlawfully used firearms and to prosecute those who commit violent crimes.
Grant recipients include the PSP cities of Indianapolis, Indiana, $798, 866; Memphis, Tennessee, $714,055; Tulsa, Oklahoma, $800,000 and Baton Rouge, Louisiana, $634,971. Other locations include Detroit, Michigan, $800,000; the Albuquerque, New Mexico, Police Department, $452,108, and the City/County of San Francisco, California, $800,000. The jurisdictions will use these awards to hire personnel to utilize the National Integrated Ballistic Information Network (NIBIN), to purchase technology required to operate a Crime Gun Intelligence Center and ammunition for ballistic tests of recovered weapons.
U.S. Attorney D. Michael Dunavant said, "The Department of Justice is committed to providing meaningful resources to strategically combat violent crime and firearms offenses. We are pleased that Memphis has been selected as a Public Safety Partnership site and we appreciate the commitment of Attorney General Sessions, the Bureau of Justice Assistance, and ATF in providing over $1.1 million in grant funding to equip law enforcement and prosecutors to more effectively deal with violent crime committed with firearms. PSP’s technical and strategic support has already contributed to the reduced violent crime rates that we have experienced. The enhanced financial support from this grant announcement is greatly needed to efficiently combat violent crime in the Memphis community, which will impact the entire Western District of Tennessee as a whole. We applaud our local law enforcement partners at the Memphis Police Department, the Shelby County Sheriff’s Office, and the Shelby County District Attorney General, for their commitment to this partnership and continued utilization of these resources. We look forward to using the NIBIN technology and the Crime Gun Intelligence Center to respond to and solve shooting incidents, and to remove violent offenders from the streets of Memphis."
The Attorney General also announced awards for BJA’s Technology Innovation for Public Safety (TIPS): Addressing Precipitous Increases in Crime program.
This program supports the Department’s priorities of reducing violent crime and supporting law enforcement officers, including prosecutors. While many jurisdictions are making significant progress implementing justice information sharing solutions to address critical gaps in crime prevention and response activities across organizations and jurisdictions, there remain challenges for the criminal justice system to respond to threats to public safety. This is especially true for efforts addressing significant increases in crime.
Justice information sharing technology refers to any hardware and software, hosted residentially or remotely, that plays a role in the collection, storage, sharing and analysis of criminal justice data. Funding under this program is provided to help state, local, territorial, and tribal jurisdictions use innovative technological solutions to enhance their justice information-sharing capacity.
Grant recipients include the PSP cities of Memphis, Tennessee, $417,224; Toledo, Ohio, $492,553; Flint, Michigan, $499,694 and Houston, Texas, $500,000. Other locations include Arizona Criminal Justice Commission, $317,834; City of Boynton Beach, Florida, $465,860; Clark County Social Service, Nevada, $500,000; New Mexico Second Judicial District Attorney, $500,000; State of Connecticut Department of Emergency Services and Public Protection; $419,804; Bergen County Prosecutor’s Office, New Jersey, $500,000; and Georgia Bureau of Investigation, $499,339. Additional information on the grant awards can be found at www.bja.gov.
Attorney General Jeff Sessions made the announcement during today’s National Public Safety Partnership Symposium on Violent Crime in Birmingham, Alabama. The National Public Safety Partnership is a DOJ-wide initiative that enables cities to consult with and receive a coordinated array of resources from DOJ’s programmatic and law enforcement components: the Bureau of Justice Assistance; United States Attorneys’ Offices; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation; the U.S. Drug Enforcement Administration; the U.S. Marshals Service; the Office on Violence Against Women; the Office of Justice Programs; the Office of Community Oriented Policing Services; and other federal agencies in order to improve local violence reduction strategies.
Department of Justice Will Award More Than $10 Million to Support Crime Reduction EffortsRead the Press Release
Attorney General Jeff Sessions today announced grant awards to Public Safety Partnership member sites as part of $10 million in funding to support state, local and tribal law enforcement departments and agencies and their partners who are fighting violent crime in jurisdictions across the United States.
The Office of Justice Programs’ Bureau of Justice Assistance, in partnership with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, is awarding $5 million under the Local Law Enforcement Crime Gun Intelligence Center Integration Initiative to encourage local jurisdictions to use intelligence, technology and community engagement to identify unlawfully used firearms and to prosecute those who commit violent crimes.
Grant recipients include the PSP cities of Indianapolis, Indiana, $798, 866; Memphis, Tennessee, $714,055; Tulsa, Oklahoma, $800,000 and Baton Rouge, Louisiana, $634,971. Other locations include Detroit, Michigan, $800,000; the Albuquerque, New Mexico, Police Department, $452,108, and the City/County of San Francisco, California, $800,000. The jurisdictions will use these awards to hire personnel to utilize the National Integrated Ballistic Information Network (NIBIN), to purchase technology required to operate a Crime Gun Intelligence Center and ammunition for ballistic tests of recovered weapons.
The Attorney General also announced awards for BJA’s Technology Innovation for Public Safety (TIPS): Addressing Precipitous Increases in Crime program.
This program supports the Department’s priorities of reducing violent crime and supporting law enforcement officers, including prosecutors. While many jurisdictions are making significant progress implementing justice information sharing solutions to address critical gaps in crime prevention and response activities across organizations and jurisdictions, there remain challenges for the criminal justice system to respond to threats to public safety. This is especially true for efforts addressing significant increases in crime.
Justice information sharing technology refers to any hardware and software, hosted residentially or remotely, that plays a role in the collection, storage, sharing and analysis of criminal justice data. Funding under this program is provided to help state, local, territorial, and tribal jurisdictions use innovative technological solutions to enhance their justice information-sharing capacity.
Grant recipients include the PSP cities of Memphis, Tennessee, $417,224; Toledo, Ohio, $492,553; Flint, Michigan, $499,694 and Houston, Texas, $500,000. Other locations include Arizona Criminal Justice Commission, $317,834; City of Boynton Beach, Florida, $465,860; Clark County Social Service, Nevada, $500,000; New Mexico Second Judicial District Attorney, $500,000; State of Connecticut Department of Emergency Services and Public Protection; $419,804; Bergen County Prosecutor’s Office, New Jersey, $500,000; and Georgia Bureau of Investigation, $499,339. Additional information on the grant awards can be found at: www.bja.gov
Attorney General Jeff Sessions made the announcement during today’s National Public Safety Partnership Symposium on Violent Crime in Birmingham, Alabama. The National Public Safety Partnership is a DOJ-wide initiative that enables cities to consult with and receive a coordinated array of resources from DOJ’s programmatic and law enforcement components: the Bureau of Justice Assistance; United States Attorneys’ Offices; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation; the U.S. Drug Enforcement Administration; the U.S. Marshals Service; the Office on Violence Against Women; the Office of Justice Programs; the Office of Community Oriented Policing Services; and other federal agencies in order to improve local violence reduction strategies.Convicted Felon Found Guilty of Possessing a Firearm after Opening Fire on Family MembersRead the Press Release
Memphis, TN – A federal jury has convicted a local man for illegally possessing a firearm. D. Michael Dunavant, United States Attorney for the Western District of Tennessee announced the guilty verdict today.
According to the information presented in court, on May 27, 2017, at approximately 7:00 p.m., Leon Ward, 33, of Memphis, drove his blue Chevrolet Impala to the 1900 block of Clovia Lane, where he displayed a .40 caliber pistol fromthe window of the vehicle. Ward then got out of the car and began firing shots in the area of several of his cousins, his brother, and three-year-old nephew.
On Friday, September 21, 2018, a federal jury convicted Ward on one count of possessing a firearm after being a convicted felon, in violation of Title 18, U.S.C., § 922(g).
U.S. Attorney D. Michael Dunavant said, "This is precisely the type of violent gun offender that threatens lives and public safety in Memphis. This brazen and recidivist violent behavior must be met with swift and significant punishment. As a result of this conviction and continued prosecution, the citizens of Memphis and West Tennessee are safer. Gun Crime is Max Time."
Leon Ward is currently serving a 42-month sentence for violating the terms of his supervised release. Ward is also facing additional federal charges involving an unrelated robbery attempt and use of a firearm in June of 2017. That indictment was returned by a federal grand jury earlier this year.
Sentencing is set for December 14, 2018, before U.S. District Court Judge John T. Fowlkes Jr. Ward faces up to 10 years imprisonment on this offense.
This case was investigated by the Project Safe Neighborhoods Task Force; Memphis Police Department and Shelby County District Attorney General’s Office and the U.S. Attorney’s Office.
Special Assistant U.S. Attorney Bryce Phillips and Assistant U.S. Attorney Bayonle Osundare are prosecuting this case on the government’s behalf.
Career Criminal Sentenced to Nearly 16 Years in PrisonRead the Press Release
SAVANNAH, GA: After almost three decades of committing violent crimes, a Savannah man has been sentenced to nearly 16 years in federal prison for weapons possession.
Harry Scott, 45, was convicted of being a felon in possession of a firearm and sentenced to 188 months in prison by U.S. District Court Judge William T. Moore Jr., and to five years of supervised release after completion of his sentence. There is no parole in the federal system.
Scott was arrested Jan. 18, 2018, after an armed standoff with Savannah police officers. Those charges are being prosecuted in the state system.
Scott’s violent, 27-year criminal record includes charges of armed robbery, statutory rape, aggravated assault and multiple drug offenses, along with an extensive history of violating probation. After his most recent arrest, he caught the attention of federal prosecutors under Project Ceasefire, an initiative designed to eliminate gun violence, and Project Safe Neighborhoods, which fights violent crime through inter-agency partnerships. During sentencing in federal court, Scott was deemed to be a career criminal and thus received an enhanced sentence.
“When violent criminals like Harry Scott are allowed to terrorize neighborhoods, citizens understandably worry that their safety is being ignored,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Through such programs as Project Safe Neighborhoods and Project Ceasefire, we are dedicated to taking people like Scott off the street and reassuring residents that the sanctity and security of their communities is once again a priority.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case, along with the Savannah Police Department and SWAT team. Assistant United States Attorneys Tania D. Groover and Marcela C. Mateo prosecuted the case on behalf of the United States.
For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Canadian Man Sentenced to 135 Months for Marijuana SmugglingRead the Press Release
ALBANY, NEW YORK – Colin Stewart, age 41, of Elgin, Quebec, Canada, was sentenced today to 135 months in prison for conspiring to smuggle thousands of pounds of marijuana into the United States from Canada through the Akwesasne Mohawk Indian Reservation.
The announcement was made by United States Attorney Grant C. Jaquith and U.S. Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division.
Following his extradition from Canada, Stewart admitted that he and his co-conspirators smuggled thousands of pounds of marijuana into the United States for distribution throughout the northeastern United States. Stewart admitted to organizing the smuggling, paying co-conspirators, and personally transporting thousands of pounds of marijuana across the St. Lawrence River from Canada into the United States.
Chief United States District Judge Glenn T. Suddaby also ordered Stewart to serve 5 years of post-imprisonment supervised release and pay a $10,000 fine.
The investigation and prosecution of Stewart was the result of a joint investigation by the DEA, Homeland Security Investigations (HSI), the United States Border Patrol, Customs and Border Protection Air and Marine Operations, the New York State Police, the St. Regis Mohawk Tribal Police Department, the Akwesasne Mohawk Police Services, and the District Attorneys of Franklin and Clinton Counties.
The case was prosecuted by Assistant U.S. Attorneys Katherine E. Kopita and Douglas G. Collyer.
Board Certified Ophthalmologist Agrees to Civil Fraud Settlement in Medicare Fraud InvestigationRead the Press Release
The United States has entered into an agreement to settle civil fraud claims with Dr. Mark Fleckner, a Board Certified Ophthalmologist who maintains a practice in Garden City, New York. The agreement resolves allegations that, in contravention of Medicare regulations and in violation of the federal False Claims Act, Dr. Fleckner administered certain pharmaceutical products that he had purchased overseas, which the U.S. Food and Drug Administration (“FDA”) had not evaluated nor approved for use in the United States (“Unapproved Drugs”). These products included aflibercept (“Eylea”) and ranibizumab (“Lucentis”), which Dr. Fleckner used to treat patients who had wet, age-related macular degeneration or other diseases and conditions of the eye. The United States contends that the Unapproved Drugs were not eligible for reimbursement by Medicare. Under the terms of the civil settlement agreement, Dr. Fleckner will pay a total of $6,955,240.80.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; Jeffrey J. Ebersole, Special Agent-in-Charge, Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), New York Field Office; and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), New York Region, announced the settlement.
“Dr. Fleckner bypassed the FDA’s regulatory authority by purchasing and administering unapproved pharmaceutical products in violation of Medicare regulations,” stated United States Attorney Donoghue. “The settlement holds Dr. Fleckner accountable for his actions and ensures that Medicare funds will only be used for FDA-approved pharmaceuticals.”
“FDA’s oversight of prescription drugs protects consumers from illicit medicines obtained from unauthorized foreign sources,” stated FDA-OCI Special Agent-in-Charge Ebersole. “We will continue to pursue and bring to justice those who place profits over their patients’ safety.”
“FDA approval provides confidence to millions of patients that drugs are safe when prescribed appropriately,” stated HHS-OIG Special Agent-in-Charge Lampert. “Those administering unapproved medications – as contended in this case – put patients at risk and burden taxpayers.”
The government’s investigation revealed that from at least July 1, 2014 to June 27, 2017, Dr. Fleckner purchased the Unapproved Drugs because they were less expensive than drugs that were approved by the FDA for marketing in the United States. Medicare reimburses physician-administered drugs at a set rate based on the average sales price of the respective FDA approved, physician-administered drug in the United States. Dr. Fleckner was thus able to profit from the “spread” between the reimbursement rates he received based on FDA-approved drugs and the lower amounts he paid for the Unapproved Drugs. The United States contends that the Unapproved Drugs were not eligible for reimbursement by Medicare. The settlement is not an admission of wrongdoing by Dr. Fleckner.
The United States’ investigation was handled by former Assistant U.S. Attorney Kenneth M. Abell of the Office’s Civil Division.
The Defendant:
DR. MARK FLECKNER
Garden City, New YorkAlameda Resident Sentenced to over Five Years in Prison for Selling Prescription Drugs Without A License and Related ChargesRead the Press Release
SAN FRANCISCO – Kenzo Mateo Tokuda was sentenced to 69 months in prison for possessing with intent to distribute alprazolam (commonly known as “Xanax”) and carrying a firearm during and in relation to a drug trafficking crime, announced United States Attorney Alex G. Tse and Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen. The sentence was handed down today by the Honorable Haywood S. Gilliam, Jr., United States District Judge.
Tokuda, 24, of Alameda, pleaded guilty to the charges on May 21, 2018. According to his plea agreement, on August 10, 2017, the defendant posted a photograph of alprazolam pills on his social media account as a means of adverting that they were for sale. Tokuda acknowledged that at the time, he had roughly 540 “followers” to his social media account. Tokuda further admitted that on August 11, 2017, he possessed both the pills and a 9 mm pistol. He admitted he possessed the pills with the intent to distribute them and he possessed the firearm for the purpose of protecting himself while he distributed the drugs.
On September 28, 2017, a federal grand jury indicted Tokuda charging him with one count each of possessing with intent to distribute alprazolam, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(E)(2); carrying a firearm during and in relation to a drug trafficking crime, in violation of 18 U.S.C. § 924(c); being a felon in possession of ammunition, in violation of 18 U.S.C. § 922(g)(1); and advertisement of a controlled substance on the Internet, in violation of 21 U.S.C. § 843(c)(2)(A). Tokuda pleaded guilty to the first two counts and the remaining counts were dismissed. According to the government’s sentencing memorandum, Tokuda came to law enforcement’s attention in the Spring of 2017 after he “flagrantly post[ed] photographs and videos of prescription drugs, marijuana, guns, and cash” to his social media account.
In addition to the prison term, Judge Gilliam sentenced the defendant to a three-year period of supervised release. The defendant currently is in state custody on unrelated charges and will begin serving the sentence when he is released from state custody.
Assistant U.S. Attorney Katherine Wawrzyniak is prosecuting the case with the assistance of Theresa Benitez and Linda Love. The prosecution is the result of an investigation by the DEA Tactical Diversion Squad.
Friday 21 September 2018
West Columbia Resident Pleads Guilty to Being an Illegal Alien in Possession of a FirearmRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Felix Martinez-Melquisdes, age 35, of West Columbia, South Carolina, has entered a guilty plea in federal court in Columbia, to possessing a firearm while being an illegal alien in the United States, a violation of 18 U.S.C. §§ 922(g)(a)(5)(A), 924(a)(2) and 924(e). United States District Chief Judge Terry L. Wooten of Columbia accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence was presented at the change of plea hearing to establish that Martinez was prohibited from possessing a firearm as the result of being a Mexican citizen who had entered and was living in the United States illegally. The investigation of Martinez began as the result of email and telephone conversations Martinez had with a girl in Kentucky that he had had a relationship with from 7th to 12th grade. The girl was about to graduate from high school and Martinez wanted to pick her up and take her to South Carolina but she did not want to go. Martinez responded by threatening to attend the graduation and shoot everyone there. This resulted in an arrest warrant for Terrorist Threats being issued in Kentucky. Graduation was scheduled for May 19, 2018 and agents with the South Carolina Law Enforcement Division (SLED) arrested Martinez at his job on May 16. At the time of his arrest Martinez was carrying a loaded Glock .40 caliber pistol. U. S. Attorney Lydon stated the maximum penalty for Illegal Alien in Possession of a Firearm is imprisonment for up to 10 years, supervised release of 5 years and/or a fine of $250,000.
This case was investigated by the Lee County Sheriff’s Office, SLED, the Department of Homeland Security and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case.
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Walthill Man Sentenced for Domestic Assault by a Habitual OffenderRead the Press Release
United States Attorney Joe Kelly announced that Arthur Marr, 41, was sentenced today in Omaha, Nebraska, by United States District Judge Robert F. Rossiter, Jr., for committing a domestic assault as a habitual offender. Judge Rossiter sentenced Marr to 5 years’ probation.
On January 27, 2018, Marr assaulted his domestic partner on the Omaha Indian Reservation by striking and punching her. At the time of the assault, Marr had two prior convictions for assault of an intimate partner or spouse.
This case was investigated by the Federal Bureau of Investigation.
Violent Felon Sentenced to Statutory Max of 10 Years for Possessing FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara has sentenced Stevie Cavazos (24, Hillsborough County) to 10 years in federal prison for possessing a firearm as a convicted felon. The sentence was the highest permissible under the relevant statute. The court also ordered Cavazos to forfeit the firearms and ammunition that he had possessed, which are traceable to proceeds of the offense. Cavazos pleaded guilty on June 8, 2018.
According to court documents and testimony during the sentencing hearing, Cavazos threatened two women with a sawed-off shotgun. While interviewing the victims, law enforcement officers heard shots coming from Cavazos’s home. They located Cavazos at his home along with the sawed-off shotgun and another rifle. At the time, Cavazos had previous convictions for robbery and battery on a law enforcement officer and, was therefore prohibited from possessing a firearm by federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hillsborough County Sherriff’s Office. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
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.
V.P. of Sales for North Alabama Compounding Pharmacy Charged in Insurance ConspiracyRead the Press Release
BIRMINGHAM – Federal prosecutors today charged the vice president of sales for Northside Pharmacy, a Haleyville, Ala.-based compounding pharmacy doing business as Global Compounding Pharmacy, with participating in a conspiracy to generate prescriptions and defraud health care insurers and prescription drug administrators out of tens of millions of dollars.
U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp Jr., U.S. Postal Inspector in Charge Adrian Gonzalez, U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson, Defense Criminal Investigative Service Special Agent in Charge John F. Khin, and Internal Revenue Service Criminal Investigation Special Agent in Charge Thomas J. Holloman announced the charges.
The U.S. Attorney’s Office filed a 13-count information in U.S. District Court charging PHILLIP NATHAN MARKS, 49, of Winter Park, Fla., with conspiring between November 2014 and June 2016 to defraud multiple insurance plans including Blue Cross and Blue Shield of Alabama, Medicare, and TRICARE, as well as their prescription drug administrators. The information also charges Marks with 12 counts of health care fraud for submitting fraudulent prescription claims to these entities. Prosecutors also filed a plea agreement with Marks.
“Global Compounding stole from insurance programs, including Medicare and TRICARE, by using a marketing scheme that increased the sales of expensive medications without regard for patient need or medical necessity,” Town said. “Schemes like this drive up health care costs for everyone. The U.S. Attorney’s Office and our law enforcement partners are committed to prosecuting everyone who sought personal enrichment by participating in this pharmacy’s health care fraud.”
The charges stem from a larger investigation that already has resulted in guilty pleas from 13 individuals. Along with Marks, prosecutors also filed charges today against another Global sales representative, bringing to 15 the number of defendants in the case. The U.S. Attorney’s Office charged JODY HOBBS, 45, of Santa Rosa Beach, Fla., in a three-count information alleging conspiracy and health care fraud. Prosecutors also filed an associated plea agreement with Hobbs.
According to the court documents, Global, which described itself as “one of the top three largest compounding pharmacies in the United States,” primarily shipped compounded and other drugs from its Haleyville facility, but did most of its prescription processing, billing and customer service at its “call center” in Clearwater, Fla. The company hired sales representatives who were located in various states and were responsible for generating prescriptions from physicians and other prescribers.
The court documents describe a multi-faceted scheme that focused on obtaining and billing for high-dollar fraudulent prescriptions. In the scheme, Global would identify high-dollar drugs and instruct employees to obtain medically unnecessary prescriptions for themselves and family members. Global incentivized prescribers to issue these fraudulent prescriptions by hiring and paying their family members as sales representatives, and by directing sales representatives to work at practitioners’ offices to have better access to patients and their files. Global employees obtained prescriptions in various other fraudulent ways, including forging prescriptions. Global maximized proceeds on these fraudulent prescriptions by altering them to add or substitute drugs and automatically refilling and billing for them, regardless of patient need. It also routinely waived co-pays to encourage patients to accept unnecessary medications and refills. When insurance plans and their prescription drug managers attempted to police Global’s conduct, Global provided false and misleading information to them, and began billing through affiliate pharmacies. Court filings in Marks’ case note that two such affiliate pharmacies were The Prescription Shop in Haleyville and Tropic Pharmacy in Boca Raton, Fla.
According to the court documents, as vice president of sales, Marks routinely directed sales representatives to obtain medically unnecessary prescriptions for themselves and family members. One such drug was Silapak, which Global itself advertised as “not indicated for children.” Global employees nonetheless submitted Silapak prescriptions for children, some as young as two years old, which Global dispensed and billed. Nine of the health care fraud charges against Marks include multiple counts of fraudulent Silapak prescription billings for children of Global employees.
According to court documents, Global hired Hobbs as a sales representative because he had high-reimbursing health insurance from his other employer. Global billed for multiple medically unnecessary drugs for Hobbs, including a tube of wound care cream that cost $30,812.
The 13 individuals previously charged and who have pleaded guilty are Global Operations Manager Jeffrey South, District Manager Angie Nelson, National Field Trainer and sales representative Bridget McCune, and sales representatives Roddrick Boykin, Joshylyn Bowen, Vanessa Case, Peter Eodice II, Robin Lowry, Kelley Norris and Dawn Whitten, and billers Fermin Alfonso, Stacey Cardozo, and Christopher Nunez.
The maximum punishment for the conspiracy charge is five years in prison and a $250,000 fine. The maximum penalty for health care fraud is 10 years in prison and a $250,000 fine.
FBI, USPIS, HHS-OIG, DCIS and IRS-CI investigated the cases, which Assistant U.S. Attorneys Chinelo Dike-Minor, Don Long, and Nicole Grosnoff are prosecuting.
An information or indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
Marks Philip Information Marks Phillip Plea AgreementUSAO NDTX Weekly Roundup -- 9/20/18Read the Press Release
PLEA – Joe Frank Rodriguez, Jr., 46
On Sept. 17, Joe Frank Rodriguez, Jr. of Plainview, Texas, pleaded guilty to embezzlement by a bank employee. Rodriguez admits to embezzling $143,000 from a Texas bank insured by the Federal Deposit Insurance Corporation (FDIC). He now faces up to 30 years in prison and a fine of $1,000,000. The FBI conducted the investigation.SENTENCING – Jose Bryan Gonzalez, 19
On Sept. 18, Jose Bryan Gonzalez of Dallas, Texas, was sentenced to 2 ½ years in federal prison for his role in illegal firearms smuggling. In May, Gonzalez pleaded guilty to one count of possessing a firearm while under felony indictment following an investigation by the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) that revealed Gonzalez had bought, through an unindicted coconspirator, over 40 firearms, which the government believes were destined for Mexico.SENTENCING – Chase Matheny, 35
On Sept. 18, Chase Matheny of Fort Worth, Texas was sentenced to 2 ½ years in federal prison for possession of stolen mail. In May, Matheny pled guilty to one count of possession of stolen mail after a Bedford Police officer discovered him with a backpack containing various stolen letters.PLEA – Serafin Sanchez Ruiz, 29
On Sept. 19, Serafin Sanchez Ruiz of Desoto, TX -- a former CareNow nurse -- pleaded guilty to online enticement of a minor. Ruiz admits to luring a 14-year-old girl, via the Whisper app, to sneak out of her house during the night and engage in sexual intercourse with him in March 2017. He now faces a minimum of ten years to life in prison and a $250,000 fine. This case was brought as part of the U.S. Attorney’s Project Safe Childhood initiative, which seeks to combat the growing epidemic of child sexual exploitation on the Internet. United States Secret Service and the Arlington Police Department investigated.PLEA – Jeremey Brown, 38
On Sept. 18, Jeremey Brown of Dunacan, Oklahoma pleaded guilty to breaking out of federal prison. Brown, who was serving time in the Big Spring Federal Correctional Institution for a firearms offense, was spotted jumping into a maroon Nissan Altima near Big Spring on May 19. The U.S. Marshals Service and the Big Spring FCI Special Investigative Services conducted the investigation. Brown’s getaway driver also pleaded guilty to concealing a person from arrest. Release here.PLEA – Christopher Shane Eudy, 41
On Sept. 19, Christopher Shane Eudy – who is currently serving time in state prison for fraudulent use of identification information -- pleaded guilty to use of an unauthorized access device. Eudy admits that in February 2017, he falsified his identity and visited a Aledo, TX store to pick up a $2,000 generator ordered with a stolen credit card number. A group later sold the equipment, and Eudy pocketed a portion of the proceeds. He now faces up to 10 years in federal prison. The Secret Service conducted the investigation.INDICTMENT -- Mohamed Toure, 57 & Denise Cros-Toure, 57
On Sept. 19, a federal grand jury indicted a Texas couple on forced labor and alien harboring charges. The Toure’s allegedly arranged for a child to travel alone from her village in Guinea, West Africa to Southlake, Texas to work for them in their home. For more than 16 years, they demanded she handle childcare, cook, and clean, all with no pay, while isolating her from friends and family. The case is being investigated by the Department of State, Diplomatic Security Services’ Houston Field Office. Release here.PLEA – William Brian Smith, 44
On Sept. 19, 2018, William Brian Smith of Saginaw, TX pleaded guilty to receipt on child pornography charges. Smith admitted to receiving videos of a child engaged in sexually explicit conduct, which were found after his employer discovered images on Smith’s work computer and contacted the police. He now faces up to 240 months in prison and a fine of up to $250,000. Saginaw Police Department and HSI conducted the investigation.PLEA – Joey Lynn Tedford, 53
On Sept. 19, Joey Lynn Tedford of Snyder, TX pleaded guilty to being a felon in possession of a firearm. Tedford admitted to possessing one rifle and one handgun. He now faces up to 10 years in prison and a fine of up to $250,000. As part of the plea, Tedford also agreed to forfeit the firearms to the United States. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) conducted the investigation.SENTENCING – Jeffrey Sila
A Kenyan man was sentenced today to more than 7 years behind bars for theft of public funds and aggravated identity theft. Jeffrey Sila, a citizen of Nairobi, allegedly obtained a $76,500 tax return check payable to another individual, then unwittingly sold it to an IRS undercover agent in exchange for $48,000. He was arrested at LAX as he attempted to board a flight for Nairobi, and convicted following a three-day trial in Dallas in September 2017.Two-Time Murderer and Member of West Baltimore’s Violent Pedestal Gardens Gang Sentenced to 25 Years in Federal PrisonRead the Press Release
Baltimore, Maryland –U.S. District Judge Catherine C. Blake sentenced Garrion McCellan, age 30, of Baltimore today to 25 years in prison, followed by 8.5 years of supervised release, for a drug conspiracy and for possession of a firearm in furtherance of a drug trafficking crime causing death. McCellan was part of a drug trafficking operation that operated in and around Pedestal Gardens, an apartment complex located in the 300 block of McMechan Street in West Baltimore. McCellan was also an active member of the Black Guerilla Family (BGF) gang during his participation in the drug conspiracy.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Interim Police Commissioner Gary Tuggle of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
“Garrion McCellan and his fellow members of the Pedestal Gardens gang brought death to West Baltimore--through the drugs they sold and the gun violence they committed,” said United States Attorney Robert K. Hur. “This sentence makes clear that U.S. Attorney’s Office, along with our federal, state, and local law enforcement partners, will bring to justice those who terrorize our city’s neighborhoods.”
“Today’s sentencing is indicative of the success that can be attained when agencies combine resources to remove violent drug distributors off the street,” said FBI Baltimore Special Agent in Charge Gordon B. Johnson. “The citizens of Maryland have the FBI’s commitment that we will continue to aggressively investigate criminal organizations that target our communities with their drug-related violent activity to ensure they are held accountable and removed from their neighborhoods."
According to his plea agreement and other court documents, from at least July 2016 through April 28, 2016, MCellan conspired with others, including Pedestal Gardens gang leader DeAndre Smith, and gang members Jamal Carter and Dymir Rhodes, to distribute heroin and fentanyl in and around Pedestal Gardens. Smith, Carter, Rhodes, and others maintained a “stash” house in Catonsville, Maryland to store drugs and drug proceeds, and to process and package drugs for distribution. Rhodes supplied McCellan with “packs” of heroin and/or fentanyl, which McCellan redistributed to drug users at Pedestal Gardens. Each “pack” typically contained between 25 and 50 gel capsules of the drugs, totaling approximately 2.5 to 5 grams. McCellan and other co-conspirators routinely distributed 40 to 50 packs of heroin and fentanyl in one day.
McCellan admitted that sometime before August 10, 2015, Smith ordered McCellan to kill a drug dealer who was encroaching on their organization’s drug territory. On August 10, 2015, McCellan, Smith, and Rhodes went to the 1700 block of McCullough Street where they located the drug dealer outside a corner store. McCellan shot the drug dealer several times, killing him. Another person was found shot in the corner store, but survived.
As detailed in his plea agreement, on October 7, 2015, McCellan shot another individual at the direction of Smith, who was disrupting the organization’s drug operation by robbing drug dealers in the area. On October 7, 2015, McCellan and Carter contacted the individual using the ruse that they wanted help to rob other drug dealers. McCellan and Carter arranged to meet the victim in the 1400 block of Druid Hill Avenue. While the victim was putting on gloves in preparation for the purported robbery, McCellan shot the victim multiple times at close range, killing him.
McCellan admitted that he expected to receive something of value from Smith in return for the two killings. McCellan also admitted that during his participation in the conspiracy he and his co-conspirators distributed between one and three kilograms of heroin.
Co-Defendants:
Deandre Smith, age 28, of Baltimore, pleaded guilty to the drug conspiracy.
Sentenced to 25 years in federal prison;Jamal Carter, age 24, of Baltimore, previously pleaded guilty to the drug conspiracy.
Sentenced to 11 years in federal prison;Dymir Rhodes, age 32, of Baltimore, pleaded guilty to the drug conspiracy. Sentenced to 10 years in federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the FBI, the Baltimore Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Daniel C. Gardner and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Two Men Plead Guilty to Violent Armed Robbery of Jewelry Store in Downtown BrooklynRead the Press Release
Earlier today, in federal court in Brooklyn, Darryl Odom and Lashawn Williams pleaded guilty to Hobbs Act Robbery and brandishing a firearm during a crime of violence in connection with the May 25, 2017 gunpoint robbery of a jewelry store located at 60 Court Street in Brooklyn. Odom also pleaded guilty to the February 10, 2017 Hobbs Act Robbery of Eleven, another jewelry store located in Brooklyn. The plea proceeding took place before Magistrate Judge Lois Bloom. Previously, co-defendant Kenneth Davis pleaded guilty to Hobbs Act Robbery and use of a firearm during a crime of violence, and Shaka Davis pleaded guilty to Hobbs Act Robbery, for their roles in the 60 Court Street robbery.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division, and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.
At approximately 5:15 p.m. on May 25, 2017, Williams and Odom entered the 60 Court Street store disguised as construction workers. Kenneth Davis, also disguised as a construction worker, stood watch outside, and Shaka Davis waited in a getaway car. Inside the store, one of the robbers pistol-whipped the store owner, and the robbers stole hundreds of thousands of dollars in cash and jewelry.
When sentenced, Odom and Williams each face a mandatory minimum of seven years in prison and up to life in prison. Kenneth Davis faces a mandatory minimum of five years in prison and up to life in prison. Shaka Davis faces up to 20 years’ imprisonment.
The case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Josh Hafetz is in charge of the prosecution.
The Defendants:
DARRYL ODOM
Age: 54
Residence: Bronx, New YorkLASHAWN WILLIAMS (also known as “Ron Johnson”)
Age: 50
Residence: Bronx, New YorkKENNETH DAVIS
Age: 53
Residence: Brooklyn, New YorkSHAKA DAVIS
Age: 30
Residence: Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-432 (S-1)
Two Bennington County Men Charged with Cocaine and Cocaine Base DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that James O’Dell, 54, and Robin Buell, 50, both of Bennington County, VT appeared today in United States District Court in Burlington, following their arrests for conspiracy to distribute cocaine and cocaine base.
According to court documents, the Vermont Drug Task Force and the Federal Bureau of Investigation conducted an investigation into the distribution of cocaine and cocaine base in the Bennington, Vermont area. During the investigation, O’Dell was identified as a significant source of cocaine in the Bennington, Vermont area. On four separate occasions, O’Dell delivered cocaine to Robin Buell, who sold the cocaine to a Vermont Drug Task Force informant.
On September 13, 2018, the Vermont Drug Task Force and the FBI arrested O’Dell and executed a federal search warrant at O’Dell’s Bennington home. In O’Dell’s home, law enforcement found approximately 360 grams of cocaine base, 386 grams of cocaine and 4 lbs. 6.5 oz. of marijuana. The total street value of the cocaine found in O'Dell's residence is $74,600. A search of one of O’Dell’s vehicles yielded a total of $24,961.00 in cash.
O’Dell appeared before U.S. Magistrate Judge John M. Conroy on September 14, 2018 on charges of conspiracy to distribute cocaine base and conspiracy to distribute cocaine. He was remanded to the custody of the U.S. Marshals Service pending further proceedings in the case. On September 18, 2018, O’Dell was released on pre-trial conditions that include, but are not limited to, surrendering his passport, drug testing, and reporting regularly to pretrial services.
On September 17, 2018, Robin Buell was arrested at his home in Bennington. Buell appeared before U.S. Magistrate Judge John M. Conroy on September 18, 2018 and was remanded to the custody of the U.S. Marshals Service. On September 19, 2018, Buell was released on pre-trial conditions that include, but are not limited to, drug testing and reporting regularly to pretrial services.
United States Attorney Christina Nolan stated: “This case is an outstanding example of how Vermont law enforcement officers at the federal, state, local, and county level come together to root out dangerous drug trafficking from our communities. Law enforcement at all levels understand that there is suffering in every corner of our state and we will continue to collaborate and deploy resources accordingly. Because of this extraordinary team effort, two drug dealers are out of business, nearly $75,000 in addiction-based profit has been cut short, and Bennington County is safer.”
“These arrests demonstrate our overall strategy and relentless determination to eradicate drugs in our community,” said James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigations. “We are proud to work side by side with the Vermont State Police, Bennington Police, and the U.S. Attorney's Office to bring these individuals to justice.”
The charges against O’Dell and Buell are merely accusations and the defendants are presumed innocent unless and until they are proven guilty.
In addition to the Vermont Drug Task Force and the FBI, members from the Vermont State Police-Shaftsbury, Bennington Police Department, and the Bennington County Sheriff's Department assisted with the arrest and search warrant. The Bennington County State’s Attorney’s Office also provided valuable assistance.
O’Dell is represented by David L. McColgin. Buell is represented by Karen R. Shingler. Assistant U.S. Attorney Andrew C. Gilman represents the United States.
Tonawanda Man Pleads Guilty to Offering Synthetic Cannabinoids for SaleRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Salleh Dubaishi, 43, of Tonawanda, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to a possession with intent to distribute AB-FUBINACA and XLR-11, synthetic cannabinoids. The charge carries a maximum penalty of 20 in prison and a fine of $1,000,000.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that in November of 2015, New York State Department of Taxation and Finance inspectors encountered the defendant at Pyramid Express HSD, a store located at 102 Hoyt Street in Buffalo, during a routine inspection of the store’s tobacco and cigarette inventory. The inspectors recovered 529 packages of suspected synthetic cannabinoids, which were labeled “Geeked Up;” “Strawberry Scooby Snax;” “Hypnotic;” “Insane;” “AK-47;” or “Kisha Cole.” The inspectors turned over the packages to Homeland Security Investigations for further analysis. HSI confirmed that the defendant possessed and offered, for retail sale AB-FUBINACA and XLR-11, both of which are Schedule I controlled substances.The plea is the result of an investigation by the New York State Department of Taxation and Finance, under the direction of Executive Deputy Commissioner Nonie Manion, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for December 13, 2018, at 12:30 p.m. before Judge Geraci.
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Three Massachusetts Men Charged in Connection with Multi-Year Mortgage Fraud SchemeRead the Press Release
BOSTON – Three Massachusetts men were charged today in federal court in Boston in connection with a 10-year mortgage fraud scheme involving at least two dozen fraudulent loan transactions and $4.3 million in losses to lenders.
George Kritopoulos, 46, of Salem, a real estate developer, was arrested today and charged with one count of conspiracy, two counts of wire fraud, six counts of bank fraud, one count of aiding the preparation of a false income tax return, and one count of obstruction of justice. Joseph Bates III, 38, of Lynnfield, was charged with one count of conspiracy, three counts of wire fraud, and two counts of bank fraud. David Plunkett, 52, of Lynn, was also charged with one count of bank fraud and one count of aiding in the preparation of a false tax return.
According to the charging documents, from 2006 through 2015, Kritopoulos, Bates, and others engaged in a scheme to defraud banks and other financial institutions by causing false information to be submitted to those institutions on behalf of borrowers – people recruited to purchase properties – located primarily in Salem. The properties were usually multi-family buildings with two-to-four units, which the co-conspirators then converted into condominiums. The co-conspirators recruited other borrowers to purchase the individual condominium units, which were also financed by mortgage loans obtained by fraud.
The false information submitted to lenders included, among other things, representations concerning the borrowers’ employment, income, assets, and intent to occupy the property. Specifically, the false employment information included representations that borrowers were employed by entities that were, in fact, shell companies used to advance the fraudulent scheme. The employment information included false representations about the income that the borrowers received from the entities, when, in fact, the borrowers received little or no income from them. Furthermore, the income asserted on the borrowers’ loan applications substantially overstated their true income. The false information also included representations that the recruited borrowers intended to live in the properties that they were purchasing, when the borrowers, in fact, did not intend to do so. Plunkett assisted the scheme by preparing tax returns for some of the borrowers that contained false and inflated income. Some of those tax returns were submitted to lenders in support of the fraudulent loan applications.
Because the borrowers did not have the financial ability to repay the loans, in many instances, they defaulted on their loan payments, resulting in foreclosures and losses to the financial institutions of more than $4.3 million.
In addition, Kritopoulos sought to obstruct the federal criminal investigation into the mortgage fraud scheme by encouraging others to make false statements and provide false documents. Kritopoulos also made false statements to federal investigators.
The charges of bank fraud and wire fraud each provide for sentences of no greater than 30 years in prison and five years of supervised release. The charge of obstruction of justice provides for a sentence of no greater than 20 years in prison and five years of supervised release. The charge of conspiracy provides for a sentence of no greater than five years in prison and three years of supervised release. The charge of aiding the preparation of false tax returns provides for a sentence of no greater than three years in prison and one year of supervised release. Each charge also carries a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Mark J. Balthazard and Sara Miron Bloom of Lelling’s Economic Crimes Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tampa Man Pleads Guilty to Felony for Lying About His Financial Situation on Restitution PaperworkRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Jason Anthony Martinez (38, Tampa) has pleaded guilty to making false statements to the U.S. Attorney’s Office’s Financial Litigation Unit. He faces a maximum penalty of five years in federal prison.
According to the plea agreement, Martinez was previously convicted in a mortgage-related fraud case and ordered to pay $3,008,551.01 in restitution. On October 24, 2017, Martinez signed and submitted a Financial Disclosure Form, upon which he falsely claimed a net income that was approximately half his actual net income and failed to disclose a number of credit accounts. This false information materially and adversely affected the resulting restitution-related payment calculations in his prior case.
U.S. Attorney Chapa Lopez stated, “Pursuant to the Crime Victims' Rights Act of 2004, federal crime victims have the right to full and timely restitution. Our Financial Litigation Unit is dedicated to investigating defendants’ ability to meet their restitution obligation and collecting such restitution in compliance with federal law. Criminal defendants must understand that the United States Attorney’s Office actively pursues the collection of restitution.”
The U.S. Attorney’s Office, recognizing the critical importance of recovering restitution for victims, has a Financial Litigation Unit that collects criminal monetary penalties, including restitution, imposed on criminal defendants by the U.S. District Court as part of his or her sentence. One of the tools used by the Unit to collect restitution is the Financial Disclosure Statement, which requires defendants to truthfully disclose, among other things, their income, expenses, assets, and liabilities.
This case was investigated by the U.S. Attorney’s Office’s Economic Crimes Section. It is being prosecuted by Assistant U.S. Attorney Thomas N. Palermo.
Syracuse Woman Pleads Guilty to Defrauding Federal GovernmentRead the Press Release
SYRACUSE, NEW YORK – Linda Sue Parnell, age 63, of Syracuse, pled guilty yesterday in federal court in Utica to four counts of wire fraud for falsely obtaining more than $70,000 from the U.S. Department of Labor for mileage reimbursement claims between 2010 and 2016, announced United States Attorney Grant C. Jaquith and Special Agent-in-Charge Sean J. Smith, U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Northeast Field Office.
In pleading guilty, Parnell admitted that after claiming to have sustained a back injury while working at a Veterans Affairs hospital she was approved to receive compensation benefits from the U.S Department of Labor relating to her claim. Specifically, the Department of Labor authorized Parnell to seek reimbursement for a membership to the YMCA of Greater Syracuse and to seek reimbursement for miles driven to and from the YMCA for the purpose of exercising to strengthen her back. The Department of Labor also authorized Parnell to seek reimbursement for miles driven to and from covered medical appointments. As part of her guilty plea yesterday, Parnell admitted that she defrauded the Department of Labor by submitting reimbursement claims for trips that she did not actually make to the YMCA, and by significantly inflating the mileage for those trips she did take to the YMCA and also to covered medical appointments. Specifically, Parnell claimed to have visited the YMCA more than 1,700 times between 2010 and 2016, though she actually visited the YMCA on approximately 50 occasions during this time. The investigation established that Parnell claimed to visit the YMCA on days she was actually traveling out of state, including dozens of times over a several-month period during which she resided in Pennsylvania. In total, the loss to the U.S. Department of Labor and the U.S. Department of Veterans Affairs exceeded $70,000.
The charges to which Parnell pled guilty yesterday carry a maximum sentence of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. 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. Parnell will be sentenced in Utica on January 24, 2019, by United States District Judge David N. Hurd, who presided over Parnell’s change of plea hearing yesterday.
This case was investigated by U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, and is being prosecuted by Assistant U.S. Attorneys Michael F. Perry and Tamara Thomson.
Syracuse Man Pleads Guilty to Possessing Pistol as a FelonRead the Press Release
SYRACUSE, NEW YORK – Nashon T. Nance, 21, of Syracuse, pled guilty yesterday in federal court to possessing a pistol as a convicted felon, announced United States Attorney Grant C. Jaquith, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)-New York Field Division, and Syracuse Police Chief Frank Fowler.
As part of his guilty plea yesterday, Nashon T. Nance admitted that he possessed a Smith and Wesson .45 caliber revolver on May 11, 2018, when he was arrested by Syracuse Police at 111 Smith Lane, Syracuse. Police were called to this location by a female who said that Nance had threatened her with a pistol. Nance was, at that time, on New York State Parole, having been previously convicted of the felony offense of Criminal Possession of a Controlled Substance in the Third Degree in Cayuga County Court in November 2016.
Sentencing is scheduled for January 23, 2019. The charge to which Nashon T. Nance pled guilty carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of 3 years. 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.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Syracuse Police Department, and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
Sentencings for September 13, 2018Read the Press Release
MICHAEL BURTON LEE WILLIAMS, 40, of Casper, Wyoming was sentenced by Chief Federal District Court Judge Scott W. Skavdahl on September 13, 2018 for conspiracy to distribute methamphetamine and use of a firearm during and in relation to a drug trafficking crime. Williams was arrested in Casper, Wyoming. He received one hundred eighty one months of imprisonment, to be followed by sixty months of supervised release. The Wyoming Division of Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the D.E.A. investigated this case.
MELVIN EDWARD JEFFERSON, 32, of Fort Worth, Texas was sentenced by Chief Federal District Court Judge Scott W. Skavdahl on September 13, 2018 for interference with interstate commerce by means of robbery and aid and abet, use and brandish a firearm during and in relation to a crime of violence, and felon in possession of a firearm. Jefferson was arrested in Cheyenne, Wyoming. He received one hundred fifty months of imprisonment, to be followed by sixty months months of supervised release, and ordered to pay restitution in the amount of $1,409.00 and a $300.00 special assessment. The Gillette Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this 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.
BRICE ASHTON CARTER, 34, of Cheyenne, Wyoming was sentenced by Federal District Court Judge Alan B. Johnson on September 13, 2018 for counterfeiting and forging obligations or securities of the United States and felon in possession of a firearm. Carter was arrested in Cheyenne, Wyoming. He received eighty-four months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay an $800.00 fine, and a $200.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
Saratoga Springs Man Admits Receiving Child Pornography over Encrypted Messaging ApplicationRead the Press Release
ALBANY, NEW YORK – Benjamin J. Varieur, age 33, of Saratoga Springs, New York, and formerly of Brunswick, New York, pled guilty today to receiving child pornography via an encrypted messaging application on his phone.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Varieur admitted that from March 22, 2018 to March 25, 2018, he used the Wickr Me messaging application to receive child pornography over the internet from another man. Varieur, using the name “bigman6012,” requested and received dozens of images of child pornography, including images depicting the sexual abuse of children as young as 2 years old.
Varieur, who has been detained since his arrest in April, faces at least 5 years and up to 20 years in prison, to be followed by post-imprisonment supervised release of at least 5 years and up to life, when he is sentenced in January by United States District Judge Mae A. D’Agostino. 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. Varieur would also have to register as a sex offender upon his release from prison.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the Colonie Police Department. The case is being prosecuted by Assistant United States Attorney Michael Barnett.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Salvadoran National Indicted for Failure to Register as a Sex OffenderRead the Press Release
BOSTON - A Salvadoran national was indicted yesterday in federal court in Boston for failure to register as a sex offender as required under the Sex Offender Registration and Notification Act (SORNA).
Melvin Velasquez, 34, was indicted on one count of failure to register as a sex offender. Velasquez was charged by complaint in August 2018 and has been in custody since.
According to court records, in 2007, Velasquez was convicted in New York of one count of rape in the third degree and sentenced to eight months in jail. Velasquez was subsequently required to register as a sex offender in any jurisdiction where he resided or worked. Velasquez, who was determined to be illegally present in the United States, was sentenced on the rape charge, and, upon completion of his sentence in 2008, deported to El Salvador.
Sometime thereafter, Velasquez returned to the United States and assumed a false identity. In May 2018, Velasquez, using his alias, was arrested and charged with various motor vehicle violations. Velasquez’s fingerprints were obtained and found to match the prints in his A-file and from his 2007 New York rape conviction. Law enforcement then queried the Massachusetts Sex Offender Registry Board and determined that Velasquez had not registered, as required by law, in Massachusetts.
The charge of failure to register provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000 fine. Velasquez will be subject to deportation proceedings. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; United States Marshal John Gibbons of the District of Massachusetts; and Todd M. Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Robbery Crew Shooter Responsible for Killing Loris, SC Store Owner Sentenced to Fifty-Five Years ImprisonmentRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that yesterday, United States District Judge Brian Harwell sentenced Jonathan Stefan Vanderhorst, age 23 of Tabor City NC, to 660 months (55 years) of incarceration as a result of his convictions for Conspiring to Commit Hobbs Act Robbery, a violation of Title 18 U.S.C. § 1951; Hobbs Act Robbery, a violation of Title 18 U.S.C. § 1951; Felon in Possession of Ammunition, a violation of Title 18 U.S.C. § 922(g); and Discharging a Firearm in Furtherance of a Crime of Violence, a violation of Title 18 U.S.C. § 924(c). In addition to Vandershorst, his co-conspirators, Jim Tracy Miller age 28, and Demetrius Altman age 39, both of Tabor City, NC, were sentenced to 262 months and 168 months respectively for violations of Conspiring to Commit Hobbs Act Robbery, a violation of Title 18 U.S.C. § 1951 and Hobbs Act Robbery, a violation of Title 18 U.S.C. § 1951.
The evidence presented at the guilty plea and sentencing hearings established that on May 3, 2016, Altman drove Miller and Vanderhorst to rob the Clarendon, NC Post Office. Upon arrival, Altman waited in the vehicle and Miller and Vanderhorst entered the Post Office. Vanderhorst jumped the counter, brandished a firearm, and struck the Post Office Clerk, the sole occupant of the post office. Ultimately, Vanderhorst and Miller stole $284.00 and the Clerk’s cell phone and left in Altman’s vehicle.
Thirteen days later, on May 16, 2016, Altman drove Miller and Vanderhorst from Tabor City, NC to Loris, SC to rob the Loris Market and Beverage store. Again, Altman stayed in the vehicle and Vanderhorst and Miller entered the store. The only occupants of the store were the owners, a husband and his wife, both of whom were working behind the checkout counter. After entering, Vanderhorst fired a shot at the female victim, fortunately missing her. Vanderhorst then approached the counter and fired another shot up into the ceiling. Thereafter, the store owner took the money out of the register and passed it to Vanderhorst who took the money handed it to Miller. Vanderhorst then turned and fired two shots, striking and ultimately killing the store owner.
The case was investigated by the Federal Bureau of Investigation, United States Postal Inspection Service, the Horry County Police Department, and the Loris City Police Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001. Assistant United States Attorneys Will Lewis, Jim May and Special Assistant United States Attorney and Chief Deputy of the Horry County Solicitor’s Office Scott Hixon prosecuted the case.
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Rhode Island Man Sentenced for CyberstalkingRead the Press Release
PROVIDENCE, RI – A North Smithfield, R.I., man who repeatedly sent emails and text messages to a former girlfriend threatening, in specific and horrifying detail, to harm or kill her and her family was sentenced today to 41 months in federal prison on cyberstalking charges, announced United States Attorney Stephen G. Dambruch and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
Howard S. Bishop, 39, was arrested in Rhode Island by FBI agents in January 2018, approximately four months after relocating from Texas to his family’s home in North Smithfield.
The threats from Bishop against his former girlfriend in Texas, and her family, were so severe that the woman was placed in FBI protective custody until Bishop was arrested. Her family hired around-the-clock armed security to guard their home.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Bishop to serve 3 years supervised release upon completion of his term of incarceration. Bishop pleaded guilty in May to transmitting in interstate commerce communications containing threats to injure another person, and with harassing or intimidating another person, using an interactive computer service or electronic communication service, that placed a person in reasonable fear of death or serious bodily injury and caused substantial emotional distress.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 33 – 41 months. The government recommended the Court impose a sentence of 41 months in prison.
According to court records, in February 2011, a former girlfriend of Bishop obtained a protective order against him in Travis County, TX, after their relationship ended. After the relationship ended, Bishop engaged in an endless pattern of abusive and threatening behavior towards the woman. In January 2012, Bishop was found guilty of violating the order and received a sentence of two years’ probation. In December 2017, a misdemeanor warrant was issued in Travis County for the arrest of Bishop for again violating the protective order.
According to court documents, beginning in November 2016, and continuing until his arrest in Rhode Island in January 2018, Bishop sent hundreds of harassing and threatening messages via the Internet to the former girlfriend and her family. They expressed extreme fear for their safety.
Bishop has been detained in federal custody since his arrest.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the FBI.
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Resident of Texas Sentenced to 71 Months in Prison for Fraud and Weapons OffensesRead the Press Release
CONCORD - Steven Orr, 53, of Grapevine, Texas, was sentenced on Thursday to 71 months in prison for two wire fraud offenses and unlawful possession of firearms, announced United States Attorney Scott W. Murray.
According to court documents and statements made in court, in June of 2017, Orr offered to sell four loaders to a company in Windham, New Hampshire for $120,000. Unaware that Orr did not own the loaders or have authority to sell them, the Windham company arranged for a third party to inspect the loaders and then caused $120,000 to be electronically transferred from its bank account in New Hampshire to Orr’s personal bank account in Texas.
In August 2017, Orr agreed to sell 21 cranes owned by a company in Joliet, Illinois to a company in Lemont, Illinois, for $2.2 million. Unaware that Orr did not have authority to sell the loaders, the Lemont company transferred a $550,000 deposit for the transaction from its bank account in Chicago, Illinois to Orr’s account in Texas.
The court records also reveal that Orr had prior felony convictions for burglary, grand larceny, larceny of an automobile, possession of a controlled substance, and an attempt to distribute contraband in a prison. Under federal law, it was unlawful for Orr to possess a firearm after his first felony conviction. Nevertheless, when Special Agents from the FBI arrested Orr last September, they found a Sig Sauer .40 caliber pistol and a Taurus .380 caliber pistol in a safe that was inside a recreational vehicle Orr was renting.
Orr previously pleaded guilty on April 5, 2018.
“I am grateful to the FBI for its efforts to stop this defendant’s fraud schemes and bring him to justice,” said U.S. Attorney Murray. “Those who commit fraud in New Hampshire should understand that they will be prosecuted and incarcerated. This defendant’s unlawful possession of guns demonstrates his complete disregard of the law, as well as the substantial risk he posed to the community.”
“Mr. Orr is a convicted felon and con man who clearly hasn’t learned anything from his time in prison. Hopefully with today’s sentencing, he’ll soon learn that the only place that cheating and swindling will get you is behind bars,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division. “The FBI will continue to seek out fraudsters like Orr, who profit through deception, by targeting hard-working businesses.”
The cases were investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Robert M. Kinsella.
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Queens Man Sentenced to 35 Years’ Imprisonment for Enticing 16-Year-Old Girl to Travel from Abroad to Engage in Sexual ActivityRead the Press Release
Earlier today in federal court in Brooklyn, Sean Price was sentenced to 35 years’ incarceration and 10 years’ supervised release by United States District Judge Nicholas G. Garaufis, following his conviction after trial in December 2017 on four charges: interstate and foreign enticement to engage in sexual activity, interstate and foreign transportation of a minor to engage in sexual activity, a Mann Act violation and attempted sexual exploitation of a child. Restitution to Jane Doe’s guardians will be determined at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, announced the sentence.
“Sean Price preyed upon the vulnerabilities of a young teenage girl, luring her across the world and away from her home for his own illicit purposes. With today’s sentence Price has been accountable for that predatory conduct,” stated United States Attorney Donoghue. “The Price case sends the message that this Office, together with our law enforcement partners, will work tirelessly to identify abusers like Price and prosecute those who would sexually exploit minors to the fullest extent of the law.” Mr. Donoghue expressed his appreciation to the Australian Federal Police, the New South Wales Police Force and the NYPD for their assistance in the investigation and prosecution of this matter, and commends the Australian authorities and the NYPD on the investigation and cooperation that ultimately led to the recovery of the missing girl.
“Now a convicted sexual predator, Sean Price admittedly lured a teenage girl from Australia to Queens, taking advantage of her young spirit and susceptibility,” stated HSI Special Agent-in-Charge Melendez. “Today’s sentencing should send a strong message to those who seek to sexually exploit children – borders and oceans will not impede the efforts of the global law enforcement community in safeguarding our children and bringing predators to face justice.”
As established during court proceedings, in the fall of 2016, Price established an online relationship with a 16-year-old girl who lived in Australia. By January 2017, they were communicating with each other daily through messages on Facebook, with much of the discussion concerning Price’s desire to engage in sex with the girl, and how she could travel from Australia to join Price in New York City without law enforcement or her parents finding out. The Facebook chat messages demonstrated that Price, who was 39-years-old at the time, openly discussed the girl’s age with her, and Price told her repeatedly that he wanted to be sexually intimate with her.
Price and the girl also discussed obtaining a fake passport so the girl could travel internationally, and Price offered to impersonate the girl’s father to help her get through airport security in the United States. In chat messages, Price told the girl that they would soon be laughing at her parents and when she told Price that she did not need parental permission to fly internationally, Price responded: “So you coming to papa?” After months of planning, Price wired the girl over $900 to purchase a plane ticket to fly to Los Angeles in late March of 2017. Shortly afterwards, on April 11, 2017, the girl flew on a roundtrip ticket from Sydney, Australia to Los Angeles, California, where Price was waiting for her arrival. Price hired a rental car, and drove across the country to Price’s home in Jamaica, Queens.
Price admitted in a post-arrest statement that he and Jane Doe were involved sexually during their cross-country trip and while they were living in Queens until she was found by law enforcement in his home four weeks later. Following her successful recovery by officers of the NYPD, Jane Doe was returned to her family in Australia. In a recent submission to the Court, Jane Doe’s mother recounted the trauma Jane Doe and her family continue to struggle with in the aftermath of the defendant’s actions.
The government’s case is being prosecuted by Assistant United States Attorneys Taryn A. Merkl and Monica K. Castro. Assistant United States Attorney Karin Orenstein of the Office’s Civil Division is in charge of the forfeiture.
The Defendant:
SEAN PRICE
Age: 40
Residence: Queens, New YorkE.D.N.Y. Docket No. 17-CR-301 (NGG)
Previously Convicted Sex Offender from Albuquerque Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Russell Young, 39, of Albuquerque, N.M., a sex offender serving a term of supervised release from a prior child pornography conviction, pled guilty yesterday in federal court in Las Cruces, N.M., to new child pornography charges.
The FBI arrested Young on June 15, 2018, on a criminal complaint charging him with distribution and possession of child pornography in Dona Ana County, N.M. According to the criminal complaint, on Oct. 13, 2011, Young was convicted of receiving child pornography, and was sentenced to 77 months of imprisonment followed by ten years of supervised release. The complaint charged Young with violating the terms of his supervised release in March 2017, Oct. 2017, and Nov. 2017, by unlawfully possessing cellular smartphones with internet access. The cellular smartphone seized from Young in Nov. 2017, contained multiple images of child pornography.
During yesterday’s change of plea hearing, Young pled guilty to a felony information charging him with distributing and possessing child pornography. In entering the guilty plea, Young admitted that on Nov. 4, 2017, he sent an image containing child pornography to another individual through social media. Young also admitted that on Nov. 8, 2017, law enforcement located multiple images of child pornography which were stored on Young’s smartphone.
At sentencing, on the distribution charge, Young faces an enhanced penalty of a mandatory minimum term of imprisonment of 15 years and a maximum of 40 years instead of the otherwise applicable penalty of five to 20 years of imprisonment. On the possession charge, Young faces an enhanced penalty of a mandatory minimum term of imprisonment of ten years and a maximum of 20 years instead of the otherwise applicable penalty of a ten-year maximum term of imprisonment. Young faces these enhanced penalties because of his prior child pornography conviction.
This case was investigated by the Las Cruces office of the FBI. Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit http://www.justice.gov/psc/.
The case also is being prosecuted the case as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution offenders with the goal of making communities in New Mexico safer places for people to live and work.
Physician Convicted of False Billing SchemeRead the Press Release
BOSTON – A physician and former employee of New England Pain Management Associates, Inc. was convicted today by a federal jury of conspiring to falsify patient medical records between May 2012 and May 2013 in an effort to obtain payments from Medicare and commercial insurers for medical services that were not performed.
Moustafa Moataz Aboshady, 36, of Lake Forest, Calif., was convicted on one count of conspiracy to make false statements in connection with health care benefit programs and two counts of making false statements in connection with health care benefit programs.
During the time of the conspiracy, Aboshady was a medical resident in Massachusetts and Rhode Island, employed at New England Wellness & Pain Management, P.C., which was also known as New England Pain Associates, P.C., Greystone Pain Management, Inc., and New England Pain Institute, P.C., or NEPA. NEPA had locations in Massachusetts and Rhode Island, and was operated by Fathallah Mashali, a pain management physician. Mashali pleaded guilty to 27 counts of health care fraud, one count of conspiracy to commit mail fraud, and 16 counts of money laundering and was sentenced in March 2018 to eight years in prison and three years of supervised release.
Aboshady was part of a conspiracy involving Mashali, other members of NEPA, and members of a satellite office in Cairo, Egypt, whose purpose was to falsify medical records and urine drug test results to support claims for payment to Medicare and insurers for services that Mashali did not render.
Part of the conspiracy involved falsification of patient encounter notes. Such false information included, but was not limited to, detailed descriptions of extensive physical examinations and treatment plans, and durations of face-to-face interactions with patients exceeding 20 to 40 minutes per appointment, to create the appearance of lengthy and involved patient encounters, when in fact these services did not take place. Aboshady instructed the Cairo office to create false electronic signatures on the encounter notes and how to make the timestamps for those signatures look realistic.
Aboshady was also responsible, in conjunction with the office in Cairo, for the fabrication of urine drug test results with false test dates, so that the tests appeared to have been performed within days of specimen collection rather than weeks or months thereafter. This information was necessary to support urine drug test billing codes submitted to Medicare and insurance companies. In fact, NEPA tested patients’ urine weeks and sometimes three months after the specimens had been collected and stored unrefrigerated in large plastic bags and containers.
The charges provide for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys Abraham R. George, Senior Litigation Counsel of Lelling’s Civil Division, and David G. Lazarus, Chief of Lelling’s Asset Forfeiture Unit, prosecuted the case.
Philadelphia Man Pleads Guilty to Possession of Methamphetamine with the Intent to DistributeRead the Press Release
Jackson, Miss. – Courtny Orlando Campbell, 27, of Philadelphia, pled guilty today before Chief United States District Judge Daniel P. Jordan III, to possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans.
On February 2, 2017, Agents with the Mississippi Bureau of Narcotics stopped a vehicle driven by Campbell. As Campbell stopped his car, he jumped out and took off running. He was caught a short distance away. Agents found a bag that Campbell tossed as he ran and found methamphetamine, cocaine, marijuana and a set of digital scales. The case is the result of an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation, dubbed "Operation Highlife," which began as an operation targeting illegal narcotics distribution in East Central Mississippi that involved the distribution of methamphetamine, cocaine and marijuana. The distribution network encompasses the States of California, Tennessee, Alabama, Georgia and Mississippi.
“Methamphetamine has devastated countless communities due to the dramatic health and public safety consequences that typically accompany its introduction into an area,” said Special Agent in Charge of Homeland Security Investigations New Orleans Jere T. Miles. “Today’s guilty plea stems from an extensive HSI effort with its federal, state and local partners to dismantle a drug trafficking organization that decimated parts of Mississippi and Alabama with methamphetamine smuggled into the U.S. from Mexico. This operation is a testament to the seamless partnership between HSI, the Mississippi Bureau of Narcotics and the Drug Enforcement Administration, and we are thankful for their assistance as well as the U.S. Attorneys’ Offices to improve the lives of law-abiding residents throughout Mississippi and Alabama.”
Campbell will be sentenced by Judge Jordan on January 11, 2019, at 9:00 a.m. and faces a maximum penalty of Life in prison and a $10,000,000 fine.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This OCDETF case is a result of a joint investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration and the Mississippi Bureau of Narcotics. Assisting agencies include the Philadelphia Police Department, Neshoba County Sheriff’s Department, Neshoba County District Attorney’s Office, Scott County Sheriff’s Office, Flowood Police Department, Rankin County Sheriff’s Department, Hinds County Sheriff’s Department, Carthage Police Department, Union Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisville Police Department, Mississippi Highway Patrol, United States Attorney's Office Southern District of Mississippi and the United States Marshal’s Service. Assistant U.S. Attorney Erin Chalk is prosecuting the case.
Peter G. Strasser Takes Oath of Office as the United States Attorney for the Eastern District of LouisianaRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser held his investiture today at the Hale Boggs Federal Court Building in front of his former colleagues, members of the judiciary and a host of well-wishers. United States District Judge Lance Africk presided over the Oath of Office ceremony. On June 20, 2018, Mr. Strasser was nominated by President Trump and was confirmed by the Senate on August 28, 2018 and was sworn in by United States District Chief Judge Nannette Jolivette Brown on September 10, 2018.
Over the course of his career, he has been a partner at Chaffe McCall, LLP; an Assistant U.S. Attorney; a diplomat; a Navy officer; and a Tulane adjunct professor. In recognition of his career and community accomplishments, Mr. Strasser was selected as a New Orleans CityBusiness Leadership in Law Honoree.
As an Assistant U.S. Attorney for Louisiana’s Eastern District, he was the head of the organized crime and economic crime sections. Among his trial accomplishments were the convictions of former Louisiana Governor Edwin Edwards and associates on racketeering charges. As a Special Assistant U.S. Attorney in the District of Puerto Rico, Mr. Strasser prosecuted at bench trials and argued on appeal the convictions of the Navy-Vieques protestors. As a result of his dedicated and superior efforts in law enforcement, he received the U.S. Attorney General’s John Marshall Award and the Metropolitan Crime Commission’s Excellence in Law Enforcement Award.
Serving overseas for 12 years as a DOJ OPDAT Resident Advisor at Embassies in Eastern Europe, Asia, and Africa, Mr. Strasser designed and implemented rule of law programs to assist host countries improve prosecutorial capacity to combat high-priority criminal activity, help strengthen independent judiciaries, and develop new criminal procedure codes. He served as an OSCE Parliamentary Election Monitor over the elections that led to the 2003 Rose Revolution in the Republic of Georgia. He later served as an OECD Anti-Corruption Monitor for Georgia. In the book “The Contractor: How I Landed in a Pakistani Prison and Ignited a Diplomatic Crisis,” Mr. Strasser was featured for his integral role in the release of a former Special Forces soldier who had been charged with double homicide for shooting two apparent robbers on the streets of Lahore. For his exemplary activities in Georgia and Pakistan, he twice received the DOJ Special Achievement Award.
U.S. Attorney Strasser is a retired Navy Reserve Captain, JAGC, having served world-wide and as a military judge. For his exemplary service, he was awarded the Legion of Merit Medal. Mr. Strasser received his B.A., with distinction, from the University of Virginia and his J.D. from Washington and Lee Law School. Fluent in German, he also attended the University of Vienna (Austria).
Paterson Police Officer Charged with Civil Rights and Other OffensesRead the Press Release
NEWARK, N.J. – A federal grand jury indicted a City of Paterson police officer for multiple offenses arising from the assault of an attempted suicide victim at St. Joseph’s Medical Center in Paterson, U.S. Attorney Craig Carpenito announced.
Police Officer Roger Then, 29, of Paterson, was charged in a five-count indictment with one count of conspiring to violate an individual’s civil rights; two substantive counts of violating an individual’s civil rights; misprision of felony for concealing the civil rights violation; and falsifying a record for submitting a false police report about the assault. Then was previously charged by criminal complaint in May 2018. He will be arraigned in federal court on a date to be determined.
According to documents filed in this case and statements made in court:
Then and Ruben McAusland were police officers with the Paterson Police Department. On March 5, 2018, they responded to a call from an attempted suicide victim. The victim called 911 and was taken by the Paterson Fire Department to St. Joseph’s Medical Center. Then and McAusland responded to the victim’s residence and subsequently followed the Fire Department to the hospital to monitor the victim.
Two videos captured some of the events that took place in the hospital that night. A hospital surveillance video shows the victim sitting in a wheelchair and McAusland standing at the hospital admissions desk. The victim appeared to throw an object down the hallway. McAusland, looking angry, pushed the victim’s wheelchair with his hands and punched the victim in the face. As the victim fell towards the ground, still in the wheelchair, Then grabbed the victim by the back of the neck and pushed the victim to the ground.
In the second video, taken by Then using his cellular telephone, the victim was on his back in a hospital bed. The victim said, “right here? See my cheek?” Then turned the camera toward himself and smiled. Then next turned the camera back towards the victim and McAusland. The victim said, “ha, ha, bitch.” McAusland responded, “I’m a what?” The victim said, “do it.” McAusland put on a pair of hospital gloves and proceeded to violently strike the victim twice across the face. McAusland then stood over the victim and said, “I ain’t fucking playing with you.” The victim covered his face with his hands and was silent. McAusland continued, “calm your ass down.” Rather than intervening to stop McAusland’s assault of the victim, Then recorded it.
Then and McAusland submitted a police report in connection with the events of March 5, 2018. The police report did not mention that McAusland punched the victim and that Then grabbed the victim by the neck and pushed the victim towards the ground, as captured in the first video. The police report also did not mention that McAusland violently struck the victim, twice, in a hospital room, as depicted in the second video. Nor did the police report mention that Then had recorded the second assault on his cell phone and failed to intervene to stop it from happening.
The victim suffered multiple injuries to his face, including an eye injury that required surgery, as a result of these assaults.
The conspiracy to violate civil rights count and the two substantive violation of civil rights counts each carries a maximum penalty of 10 years in prison. The misprision of felony count carries a maximum penalty of three years in prison. The false records count carries a maximum penalty of 20 years in prison. The maximum fine for each of the charges is $250,000.
On June 27, 2018, McAusland pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with possessing with intent to distribute narcotics and deprivation of civil rights under color of law. He is awaiting sentencing.
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 indictment. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal, Deputy Chief of the Criminal Division, and Lee M. Cortes Jr., Deputy Chief of the Special Prosecutions Division.
Owner of Los Angeles-Area Clothing Outlets Pleads Guilty and Admits Failing to Report $3.7 Million in Income to the Internal Revenue ServiceRead the Press Release
LOS ANGELES – A Downey man who operates second-hand clothing stores across the Los Angeles area pleaded guilty today to failing to report $3.7 million in corporate income to the Internal Revenue Service.
Jose Martin Andrade Flores, 53, the owner and operator of American Superior Used Clothing, Inc., pleaded guilty this afternoon to subscribing to a false corporate tax return for the 2013 tax year.
According to a plea agreement filed in this case, American Superior was in the business of recycling used clothing, which it then resold at retail stores located on Melrose Boulevard and in Hollywood, Echo Park and Pasadena. The company also engaged in bulk wholesale transactions with buyers worldwide, as well as selling merchandise at Rose Bowl swap meets and sidewalk locations in East Los Angeles.
From 2012 through 2016, Flores concealed from his corporate tax preparer cash sales and deposits into foreign bank accounts that were made on behalf of American Superior. As a result, Flores admitted in court, the tax returns he filed for American Superior for those five years failed to report a total of $3,766,473 in income to the IRS.
At today’s hearing, Flores specifically pleaded guilty to subscribing to a false corporation income tax return (Form 1120) that he filed for American Superior for 2013. In that year, American Superior had income of approximately $3,440,769, but Flores instead reported only $2,505,183, omitting income of $935,586.
Flores pleaded guilty before United States District Judge Christina A. Snyder, who scheduled a sentencing hearing for December 3. As a result of today’s guilty plea, Flores faces a statutory maximum sentence of three years in federal prison.
As part of this case, Flores agreed to pay all back taxes, interest and penalties associated with his willful failure to accurately report American Superior’s income. Flores has paid the IRS $1,189,331, which includes $439,632 in penalties.
This case was investigated by IRS Criminal Investigation.
This matter is being prosecuted by Assistant United States Attorney Ranee Katzenstein, Chief of the Major Frauds Section.
Operator of Counter Antivirus Service “Scan4you” Sentenced to 14 Years in PrisonRead the Press Release
A Latvian “non-citizen,” meaning a citizen of the former USSR who resided in Riga, Latvia, was sentenced to 168 months in prison today for offenses related to his operation of “Scan4you,” an online counter antivirus service that helped computer hackers determine whether the computer viruses and other malicious software they created would be detected by antivirus software, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, and Special Agent in Charge Matthew J. DeSarno of the FBI Washington Field Office’s Criminal Division.
Ruslans Bondars, 38, was convicted on May 16, following a five-day jury trial, of one count of conspiracy to violate the Computer Fraud and Abuse Act, one count of conspiracy to commit wire fraud, and one count of computer intrusion with intent to cause damage and aiding and abetting.
“Ruslans Bondars helped malware developers attack American businesses,” said Assistant Attorney General Benczkowski. “The Department of Justice and its law enforcement partners make no distinction between service providers like Scan4You and the hackers they assist: we will hold them accountable for all of the significant harm they cause and work tirelessly to bring them to justice, wherever they may be located.”
“Ruslans Bondars designed and operated a service that provided essential aid to some of the world’s most destructive hackers,” said U.S. Attorney Terwilliger. “This prosecution demonstrates our commitment to combating global computer crime by taking away the essential tools upon which hackers rely.”
“We continue to face sophisticated cyber threats from state-sponsored hackers, hackers for hire, organized cyber syndicates, and terrorists,” said FBI Special Agent in Charge DeSarno. “This prosecution should serve as an example to those who assist or facilitate criminal hacking activity that they will be exposed and held accountable no matter where they are in the world.”
According to testimony at trial and court documents, from at least 2009 until 2016, Bondars operated Scan4you, which for a fee provided computer hackers with information they used to determine whether their malware would be detected by antivirus software, including and especially by antivirus software used to protect major U.S. retailers, financial institutions and government agencies from computer intrusions.
A Scan4you customer, for example, used the service to test malware that was subsequently used to steal approximately 40 million credit and debit card numbers, as well as approximately 70 million addresses, phone numbers and other pieces of personal identifying information, from retail store locations throughout the United States, causing one retailer approximately $292 million in expenses resulting from the intrusion.
Another Scan4you customer used the service to assist the development of “Citadel,” a widely used malware strain that was used to infect over 11 million computers worldwide, including in the United States, and resulted in over $500 million in fraud-related losses. The Citadel developer took advantage of a special feature of Scan4you that allowed its integration directly into the Citadel malware toolkit through an Application Programming Interface, or API. The API tool allowed Scan4you users the flexibility to scan malware without the need to directly submit the malware to Scan4you’s website.
At its height, Scan4you was one of the largest services of its kind and had at least thousands of users. Malware developed with the assistance of Scan4you included some of the most prolific malware known to the FBI and was used in major computer intrusions committed against American businesses.
Scan4you differed from legitimate antivirus scanning services in multiple ways. For example, while legitimate scanning services share data about uploaded files with the antivirus community and notify their users that they will do so, Scan4you instead informed its users that they could upload files anonymously and promised not to share information about the uploaded files with the antivirus community.
In issuing the sentence, the court found a loss amount of $20.5 billion. In addition to the term of imprisonment, U.S. District Judge Liam O’Grady ordered Bondars to serve three years of supervised release. A decision regarding forfeiture and payment of restitution to victims of the offenses is forthcoming.
The FBI Washington Field Office investigated the case. Trial Attorneys C. Alden Pelker and Ryan K. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Kellen Dwyer and Laura Fong of the Eastern District of Virginia prosecuted the case. The Government of Latvia, including the Latvia State Police International Cooperation Department, the Latvia State Police Cybercrime Unit, and the General Prosecutor’s Office of the Republic of Latvia – International Cooperation Division, provided assistance and support during the investigation. Additional assistance was provided by the Criminal Division’s Office of International Affairs, the FBI’s Atlanta Field Office and the Operational Technology Division, and the U.S. Attorney’s Offices for the District of Minnesota and the Northern District of Georgia.
Omaha Men Sentenced for Walgreen’s RobberyRead the Press Release
United States Attorney Joe Kelly announced that Kevin Mitchell, age 32, was sentenced in federal court today in Omaha, Nebraska, for one count of robbery. The Honorable Robert F. Rossiter, Jr., sentenced Mitchell to 151 months of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Mitchell will begin a three-year term of supervised release.
On January 17, 2018, Mitchell, brandishing a machete, robbed the Walgreen’s at 3001 Dodge Street in Omaha, Nebraska. While waiving the machete, he scratched the clerk’s arm and stated “see it’s sharp” before demanding cash from the store’s safe. He obtained $4,300 from the store that Omaha Police Officers recovered a short time later. Mitchell was tracked to 3021 Burt Street and was located with $2,690 in his pocket. An additional $1,682 was found in a ceiling tile in the lower level of an apartment building.
U.S. Attorney Joe Kelly remarked that Mitchell having two prior robbery convictions contributed to Judge Rossiter giving the 12 ½ year sentence. Repeat violent offenders will be pursued vigilantly by federal authorities.
The case was investigated by the Federal Bureau of Investigation Great Plains Violent Crimes Task Force and Omaha Police robbery unit.
Omaha Man Sentenced to 7 years for Distributing Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Jon C. Carr was sentenced on September 20, 2018, for distributing child pornography in federal court in Omaha. The Honorable John M. Gerrard sentenced Carr to 84 months of imprisonment. There is no parole in the federal system. After his release from prison, Carr will begin a 5-year term of supervised release. He was further ordered to pay $3,000 in restitution to the victims depicted in the images.
The investigation began with a cyber-tip from AOL. AOL reported that an IP address traced to Carr’s residence distributed an image during an online chat. That image depicted the genitalia of a 2- to 4-year-old girl and was determined to be child pornography.
A search warrant was served on Carr’s Omaha residence. Two hundred images of child pornography were recovered from his phone. A dropbox link was observed. A search warrant for Carr’s dropbox account recovered more than 50 videos and images of child pornography with victims as young as 2 years old.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Cyber Crime Task Force (CCTF).
Oakland Man Found Guilty of Conspiracy to Distribute Methamphetamine and Money LaunderingRead the Press Release
Jackson, Miss – Michael Maes, age 30, of Oakland, California was found guilty today on 8 of 9 charges of distribution of methamphetamine and money laundering after a three and a half day jury trial in front of U.S. District Judge Halil Sul Ozerden, announced U.S. Attorney Mike Hurst and HSI Special Agent in Charge Jere T. Miles and DEA Special Agent in Charge Derryle Smith.
Between June 2016 and February 2017, Maes was sending packages of methamphetamine to addresses in Slidell, Louisiana for distribution in the Southern District of Mississippi. The individuals distributing that methamphetamine would then deposit proceeds from those sales into Wells Fargo accounts in Biloxi and Gulfport at Maes’s direction. All of the individuals distributingmethamphetamine on the Mississippi Coast had previously pled guilty to their activities. The jury, after several hours of deliberation, found him guilty of conspiracy to distribute methamphetamine, attempt to possess with intent to distribute methamphetamine, conspiracy to commit money laundering and five specific acts of money laundering. He was acquitted of one specific act of money laundering.
Maes will be sentenced on December 13, 2018, by Judge Ozerden, and faces a maximum penalty of life in prison and a $10,000,000 fine.
The case was investigated by Homeland Security Investigations and the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorneys John Meynardie and Kathlyn Van Buskirk.
North Carolina Man Found Guilty of Failing to Pay $58,400 in Child SupportRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that a jury returned a verdict yesterday finding Steve Matisko, Jr., 54, of Raleigh, North Carolina, guilty of willfully failing to pay child support. The trial was held before Chief United States District Judge Nancy Torresen sitting in Bangor.
Evidence introduced at trial showed that in 1997 the Maine District Court found that Matisko was the legal and biological father of a child and ordered Matisko to pay $56 per week in child support. The evidence showed that Matisco willfully failed to make child support payments for the next approximately 20 years. The evidence also showed that Matisko lived in Maine, Alaska, Ohio, Texas and North Carolina during that period of time and worked for cash so as to avoid his support obligations. Matisko’s unpaid child support obligation totaled $58,406.
Chief Judge Torresen will sentence Matisko after the United States Probation Office conducts a presentence investigation. He faces up to two years in prison and one year of supervised release, a $250,000 fine and court-ordered restitution in the amount of $58,406.
The investigation was conducted by the Office of the Inspector General for the U.S. Department of Health and Human Services as well as the Division of Support Enforcement and Recovery for the Maine Department of Health and Human Services.
Myrtle Beach Man Arrested Following Federal Indictment for Felon in Possession of a FirearmRead the Press Release
Florence, South Carolina ------- United States Attorney Sherri A. Lydon announced today that Jadarius Oshar McCray, age 22, of Myrtle Beach, South Carolina, was arrested following a single-count federal Indictment charging felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g). The maximum penalty McCray could receive is ten years imprisonment. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Myrtle Beach Police Department. The case is assigned to Assistant United States Attorney Lauren Hummel of the Florence office for prosecution.
The United States Attorney stated that all charges in this Indictment are merely accusations and that the defendant is presumed innocent until and unless proven guilty.
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Monongalia County man admits to child pornography productionRead the Press Release
ELKINS, WEST VIRGINIA – Ian Michael Toothman, of Morgantown, West Virginia, has admitted to a child pornography charge, United States Attorney Bill Powell announced.
Toothman, age 29, pled guilty to one count of “Aiding and Abetting Production of Child Pornography.” Toothman admitted to producing child pornography in December 2017 in Monongalia County.
Toothman faces up to 30 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Mississippi Resident Pleads Guilty to Unlawful Use of Merchant Mariner CredentialsRead the Press Release
JEFFREY M. DESALVO, age 35, a resident of Picayune, Mississippi, pleaded guilty yesterday to three counts of unlawful use of a merchant mariner license in violation of Title 18, United States Code, Section 2197.
According to court documents, on February 4, 2015, DESALVO entered into a settlement with the U.S. Coast Guard wherein he agreed to surrender his merchant mariner credentials in lieu of having them permanently revoked. In connection with the settlement agreement, DESALVO submitted an affidavit to the U.S. Coast Guard in which he stated that his credentials had been destroyed, when, in truth and fact, his credentials had not been destroyed. In addition to the foregoing, DESALVO illegally used his suspended credentials to obtain work as a boat captain for four different companies that operated on the Mississippi River.
DESALVO faces a maximum term of imprisonment of not more than five years, a supervised release term of three years, and a fine of $250,000.00 for each count. U.S. District Judge Nannette Jolivette Brown set sentencing for December 13, 2018.
U.S. Attorney Strasser praised the work of the United States Coast Guard in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Mexican National and Co-Conspirator Sentenced to Prison for Attempting to Transport Drugs from California to AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that two men have been sentenced in Juneau for attempting to transport cocaine and marijuana from California to Alaska for distribution.
Jorge Lopez-Villareal, 29, a citizen of Mexico residing in Juneau, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess, to serve three years in prison, followed by four years of supervised release. His co-conspirator, Carlos Zavala-Flores, 39, of Juneau, was previously sentenced in June 2018 to serve three years in prison, followed by five years of supervised release. Both have pleaded guilty to drug conspiracy charges.
According to court documents, on April 19, 2017, Zavala-Flores and Lopez-Villareal flew together from Juneau to Los Angeles. On April 26, 2017, the two were traveling up the I-5 in a vehicle, which contained quantities of cocaine and marijuana intended for distribution in Alaska. Later that day, Oregon State Police conducted a traffic stop on the vehicle after observing the vehicle crossing over the centerline several times. At the traffic stop, the Trooper noticed a strong odor of fabric softener and marijuana emanating from the vehicle. When Zavala-Flores was questioned, the Trooper learned that both Zavala-Flores and Lopez-Villareal intended on driving the vehicle up the I-5 to Seattle so they could ship the vehicle to Juneau. Upon arriving in Seattle, the two were planning to split the cost to barge the vehicle to Juneau, and both later intended to fly up to Juneau from Washington via a commercial airline.
A subsequent search of the vehicle revealed approximately 6.8 pounds of cocaine and 22 pounds of marijuana intended for distribution in Juneau. A search of Lopez-Villareal revealed he was carrying $6,750 in U.S. currency.
Homeland Security Investigations (HSI) and Oregon State Police (OSP) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jack S. Schmidt.
Mexican National Residing in Modesto Is Sentenced to 17.5 Years in Prison for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — Feliciano Ochoa Reyes, 34, of Mexico and Modesto, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 17 and a half years in prison for conspiring to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Reyes supplied methamphetamine to various distributors in the Sacramento and Modesto areas between 2014 and 2015. Reyes was arrested on March 29, 2015, after law enforcement officers watched one of his employees receive a delivery of 15 kilograms of methamphetamine at a Modesto stash house. The methamphetamine delivery was worth approximately $50,000. When agents searched the property, they found a laboratory for converting liquid methamphetamine to crystal methamphetamine and more than $23,000 in cash. On December 3, 2014, officers pulled over the car of a Reyes customer who had just received four kilograms of methamphetamine from Reyes.
This case was the product of an investigation by the Drug Enforcement Administration, the Central Valley High Intensity Drug Trafficking Area, and the California Multi-Jurisdictional Methamphetamine Enforcement Team. Assistant U.S. Attorney Amanda Beck prosecuted the case.
Co-defendants Jose Acosta and Jorge Rios have each been sentenced to 87 months in prison. Co-defendant Jose Luis Aguilar was sentenced to 48 months in prison. Co-defendant Luis Garcia Barreto was sentenced to 47 months in prison. Co-defendant Diego Velasquez was sentenced to 30 months in prison. Juan Antonio Mendoza Meraz was sentenced in a related case to 56 months in prison. Charges are pending against the final co-defendant, Jose Vasquez. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican Man Sentenced to Time Served for Unlawfully Re-Entering the United StatesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced Benigno Godinez-Cortez, 45, of Ahuacuotzingo, Guerrero, Mexico was sentenced yesterday in U.S. District Court by Chief Judge Nancy Torresen to time servied (70 days) in prison for unlawfully re-entering the United States. He pled guilty on August 14.
According to court records, on July 10, the defendant entered the United States illegally from Canada by crossing a railroad trestle near Calais. U.S. Border Patrol agents located the defendant shortly after he entered. He is a citizen of Mexico who had been deported after his arrest in 1994 on immigration charges and did not have immigration documents allowing him to enter.
The investigation was conducted by the U.S. Border Patrol and U.S. Customs and Border Protection.
Mexican Man Sentenced to Prison for Document FraudRead the Press Release
A Mexican man who used a fraudulent identification document to obtain a job was sentenced today to almost four months in federal prison.
Jose Castaneda-Rivera, age 49, a citizen of Mexico illegally present in the United States and living in Britt, Iowa, received the prison term after a July 9, 2018, guilty plea to one count of false use of an immigration identification document.
In a plea agreement, Castaneda-Rivera admitted he used a fraudulent State of Iowa Non-Driver Identification Card when he completed an employment form on April 4, 2013, at a business in Forest City, Iowa. Castaneda-Rivera knew the identification card was false and had not been issued to him by the State of Iowa. Castaneda-Rivera used the fraudulent identification card to falsely claim he was authorized to work in the United States when Castaneda-Rivera knew he was not authorized to work.
Castaneda-Rivera was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Castaneda-Rivera was sentenced to 114 days’ imprisonment and fined $2,000. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Castaneda-Rivera is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by the Department of Homeland Security, Homeland Security Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3010-LRR. Follow us on Twitter @USAO_NDIA.
Member of Nevada City-Based Conspiracy Sentenced to over 7 Years in Prison for Multi-Million Dollar Bank and Title Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Larry Allen Todt, 66, formerly of Malibu, was sentenced to over seven years in prison and ordered to pay over $3,000,000 in restitution for his role in a fraudulent mortgage elimination scheme, U.S. Attorney McGregor W. Scott announced.
On December 6, 2017, Todt was convicted following trial on one count of conspiracy and one count of bank fraud.
According to court documents, between April 22, 2010, and November 18, 2011, Todt was a member of a conspiracy that ran a mortgage elimination program purporting to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.
As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity, Pillow Foundation. The conspirators indicated to the homeowners that these entities would offer protection against the banks.
Todt ran a branch of the mortgage elimination program, recruiting homeowners into the scheme, marshalling the necessary recorded documents, and guiding the sale of the homes. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Todt would have a sham deed of trust created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.
The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.
With title appearing to be clear, the conspirators caused the sale of the home with the proceeds split between the co-conspirators and the homeowners.
In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes, but were unable to sell these before the scheme unraveled.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Todd A. Pickles are prosecuting the case.
One co-defendant, George B. Larson, formerly of San Rafael, was convicted at trial along with Todt and sentenced to 121 months in prison. One other co-defendant, Michael Romano, of Benicia, was sentenced to 37 months in prison following his guilty plea. Remus A. Kirkpatrick, formerly of Oceanside, and Laura Pezzi, of Roseville have previously pleaded guilty. Tisha Trites and Todd Smith, both of San Diego, pleaded guilty in related cases. All are awaiting sentencing.
Co-defendants John Michael DiChiara, of Penn Valley, and James Castle, of Santa Rosa, are awaiting trial. The charges against DiChiara and Castle are only allegations; both defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Melbourne Man Sentenced to Thirty Years for Sexually Exploiting Minors and Assaulting A Federal Officer with A FirearmRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced David Hardman (55, Melbourne) to 30 years in federal prison for sexually exploiting minors and for forcibly assaulting a federal officer with a deadly weapon. The court also ordered Hardman to forfeit the proceeds obtained from the sale of his residence, which he had used to commit the sexual exploitation offenses, and to forfeit the digital devices he used to commit his offenses. Hardman pleaded guilty on April 26, 2018.
According to court documents, Hardman produced DVD videos of minors engaged in sexually explicit activity and sold the DVDs to buyers throughout the United States. During a period of seven years, Hardman exploited nine identified minors and made $346,664 from the sale of the DVDs. On August 17, 2017, FBI agents and officers from the Melbourne Police Department executed a search warrant at Hardman’s home. Hardman hid in his bathroom with a firearm. When the officers entered the room, Hardman pointed the weapon at the officers as he tried to chamber a round. The officers tackled Hardman and retrieved the firearm.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Massena Man Sentenced to 30 Years for Child Pornography OffensesRead the Press Release
SYRACUSE, NEW YORK – Brandon Jock, age 35, of Massena, New York, was sentenced yesterday to serve 30 years in federal prison following his plea of guilty to five federal felonies relating to child pornography offenses, announced United States Attorney Grant C. Jaquith, James Hendricks, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation (FBI) and New York State Police Superintendent George P. Beach II.
In March of 2018, Jock pled guilty to Advertising Child Pornography, as a part of his participation in on-line groups that he administered specifically for the trading of child pornography. In addition, Jock was convicted of transporting child pornography over the internet into both an online group, and into cloud storage accounts that he then shared with others. The federal investigation resulted in the recovery of over 13,000 images and videos of child pornography that Jock had transported over the Internet to store in those accounts in order to trade.
This case was investigated by the Federal Bureau of Investigation (FBI) and the New York State Police, and was prosecuted by Assistant U.S. Attorney Lisa M. Fletcher, the Project Safe Childhood Coordinator for the Northern District of New York.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.