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24 October 2018
Four Local Members of White Supremacy Group Face Federal Charges in Attacks at Political Rallies across CaliforniaRead the Press Release
LOS ANGELES – Four Southern California men who allegedly are members of a white supremacy extremist group have been named in a federal criminal complaint that charges them of travelling to political rallies across California, where they violently attacked counter-protesters, journalists and a police officer.
Three of the four defendants are now in custody, and authorities are continuing to search for the fourth defendant.
The criminal complaint unsealed today alleges that the four defendants are members of the Southern California-based “Rise Above Movement” (RAM) and that they used the internet “with the intent to organize, promote, encourage, participate in, or carry on riots.”
The four RAM members allegedly engaged in a series of violent attacks at political rallies in 2017, including events in Huntington Beach, Berkeley and San Bernardino.
The affidavit in support of the complaint alleges that the men used the internet to coordinate “combat training,” attendance and travel prior to the events, and then to “celebrate their acts of violence in order to recruit members for future events.”
The three men taken into custody are:
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Robert Rundo, 28, of Huntington Beach, allegedly a founding member of RAM and the man behind RAM’s Twitter account, who made his first court appearance on Monday, and at a hearing this morning in United States District Court was ordered detained pending trial;
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Robert Boman, 25, of Torrance, who was arrested this morning by special agents with the Federal Bureau of Investigation and is expected to appear in federal court this afternoon; and
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Tyler Laube, 22, of Redondo Beach, who also was arrested this morning by the FBI and is expected to appear in court this afternoon.
The fourth defendant named in the complaint – Aaron Eason, 38, who resides in the Riverside County community of Anza – is currently being sought by federal authorities.
“Every American has a right to peacefully organize, march and protest in support of their beliefs – but no one has the right to violently assault their political opponents,” said United States Attorney Nick Hanna. “The allegations describe an orchestrated effort to squelch free speech as members of the conspiracy travelled to multiple locations to attack those who hold different views. This case demonstrates our commitment to preserve and protect the freedoms guaranteed by the Constitution.”
“The safeguarding of Constitutionally-protected activity is at the heart of the FBI’s mission,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “There is no place in our democracy, however, for lawbreaking by individuals who cross the line from protected free speech to violence in the name of extremist ideology.”
According to the complaint, which charges the four defendants with violating the federal conspiracy and riots statutes:
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At the Huntington Beach “Make America Great Again” rally on March 25, 2017, members of RAM broke off from the main rally and confronted counter-protesters, where Rundo, Boman and Laube attacked a number of people, including two journalists.
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In the weeks following this melee, RAM members celebrated the attacks, which were noted on a neo-Nazi website, and solicited others to attend an upcoming rally in Berkeley, as well as combat training to be held in a park in San Clemente.
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At the Berkeley rally on April 15, 2017, Rundo, Boman and Eason were involved in violent attacks, which resulted in Rundo being arrested after punching a “defenseless person” and a Berkeley Police Officer.
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In the subsequent months, RAM members celebrated the assaults in Berkeley, which included Boman posting photos of himself attacking people and RAM members engaging in combat training.
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On June 10, 2017, Rundo and other RAM members attended an “Anti-Islamic Law” rally in San Bernardino, where they participated in violent attacks.
The case announced today follows the filing of an indictment in federal court in Charlottesville, Virginia that charges four other California RAM members with violating the riots statute during violent altercations at a torch-lit march at the University of Virginia and Unite the Right Rally in August 2017. The affidavit unsealed today in Los Angeles noted the connections between the defendants in both cases.
RAM and its members documented and promoted their white supremacy ideology through postings on various internet platforms and through graffiti, including tags found in Irvine. In a video posted online earlier this year and described in the complaint, Rundo said he was “a big supporter of the fourteen,” which is a reference to the “14 words,” a slogan used by white supremacists and neo-Nazis that reads: “We must secure the existence of our people and a future for white children.”
In the spring of 2018, Rundo and two of the men charged in the Charlottesville case travelled to Europe to celebrate Adolf Hitler’s birthday and to meet with members of other white supremacy extremist groups, according to the complaint.
“Rundo, Boman, Laube, and Eason, along with other RAM members, have used the internet to prepare to incite and participate in violence at various political events, have committed violent assaults while at those events, and have applauded each other for it and publicly documented their assaults in order to recruit more members to engage in further assaults,” the complaint alleges.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of the conspiracy and riots charges in the complaint, each defendant would face a statutory maximum sentence of 10 years in federal prison.
This case is being investigated by the FBI’s Joint Terrorism Task Force.
The Los Angeles Sheriff's Department, the Redondo Police Department and the Torrance Police Department provided assistance in relation to this morning’s arrests.
This matter is being prosecuted by Assistant United States Attorney David T. Ryan of the Terrorism and Export Crimes Section in the National Security Division of the United States Attorney’s Office.
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Former Treasurer for Newark Mayor Election Campaign Sentenced to 30 Months in Prison for Embezzling over $220,000Read the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 30 months in prison for embezzling more than $220,000 in campaign funds while serving as the treasurer for a Newark mayoral campaign, U.S. Attorney Craig Carpenito announced.
Frederick Murphy Jr., 56, of Bloomfield, New Jersey, previously pleaded guilty before Chief U.S. District Judge Jose L. Linares to Counts One, Two, and Five of an information charging him with wire fraud, bank fraud, and tax evasion. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between January 2014 and March 2017, Murphy served as the treasurer for election campaign accounts associated with a Newark mayoral candidate. Murphy admitted that during that time, he embezzled over $220,000 from those accounts by writing phony checks in the names of various consultants and vendors for services that were never performed.
Murphy cashed the checks by presenting them to a bank in Essex County with the forged signature of the check payees as well as Murphy’s own signature as a double endorsement. Murphy then reported the fraudulent checks as legitimate campaign expenditures in quarterly filings with the New Jersey Election Law Enforcement Commission. The false reports were uploaded by the Election Law Enforcement Commission onto its website for public reference.
Murphy also admitted under-reporting $102,954 in embezzled campaign funds on his personal income tax return for 2016.
In addition to the prison term, Judge Linares sentenced Murphy to three years of supervised release and ordered him to pay restitution of $277,826.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and IRS–Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: Alan Dexter Bowman Esq., Newark
Former Nashville Metro Police Sergeant Sentenced to Federal PrisonRead the Press Release
NASHVILLE, Tenn. – October 24, 2018 – Former Nashville Metropolitan Police Department (MNPD) Sergeant James Dunaway was sentenced today to two years in federal prison, to be followed by three years of supervised release, for stealing more than $100,000 during the execution of search warrants, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Dunaway, 43, of Old Hickory, Tennessee, was indicted by a federal grand jury on May 2, 2018, and charged with theft from an entity that receives federal program funds and money laundering. He pleaded guilty to the charges on July 10, 2018.
“When public servants that are sworn to uphold the law violate their oath, they must always be held accountable,” said U.S. Attorney Don Cochran. “Dunaway made a conscious decision to violate the public’s trust and in doing so, he brought dishonor upon the profession and his department and placed an unnecessary burden on the many honorable men and women who work tirelessly every day to adhere to the highest standards of the profession. I commend the leadership of the Metropolitan Nashville Police Department for taking swift and appropriate action when this matter came to their attention.”
“James Dunaway betrayed the families of Nashville and the men and women of this police department,” said Metro Police Chief Steve Anderson. “Our sting investigation showed that he greedily and selfishly stole money in a scheme that sickened all of us. I am grateful to U.S. Attorney Don Cochran and the FBI for agreeing with our request to prosecute Dunaway in the federal system.”
Dunaway was a supervisor in the MNPD Specialized Investigation Division-Narcotics Unit and was responsible, among other things, for monitoring and executing search warrants. During the execution of search warrants on five separate occasions, he stole a portion of the cash discovered and seized at each location, including:
The November 18, 2015 search of a residence off Pleasant Hill Road in Nashville, where more than $100,000 was seized;
The April 10, 2017 search of a residence off Robertson Road in Nashville, where more than $500,000 was seized;
The April 26, 2017 search of a residence off Pleasant Hill Road in Nashville, where more than $182,000 was seized;
The September 13, 2017 search of a residence off Spencer Enclave Way in Nashville, where more than $70,000 was seized; and
The November 15, 2017 search of a hotel room in which the MNPD Office of Professional Accountability had placed marijuana, $28,000 cash and video cameras for the purpose of conducting an integrity check. Video cameras captured Dunaway placing money in his pockets during the search and the indictment alleges that Dunaway stole $5,860.00 during the execution of this search warrant.
Between April 11, 2017 and May 8, 2017, Dunaway made approximately $40,540.00 in cash deposits and on May 1, 2017, he obtained a cashier’s check with $42,500.00 cash, which he stole during the searches. Dunaway then used the cashier’s check to purchase a 2014 Toyota Sequoia.
During the course of this scheme, Dunaway embezzled, stole and converted approximately $109,910.00 to his own use.
In addition to the prison sentence, U.S. District Judge Aleta A. Trauger ordered Dunaway to forfeit the 2014 Toyota Sequoia and to pay restitution in the amount of $80,969.00.
This case was investigated by the FBI and the Metropolitan Nashville Police Department. U.S. Attorney Don Cochran and Assistant U.S. Attorney Sara Beth Myers prosecuted the case.
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Former Law School Student Pleads Guilty to CyberstalkingRead the Press Release
WILMINGTON, Del. – Ho Ka Terence Yung – a former student at the University of Texas Law School – entered a guilty plea yesterday to one count of cyber stalking, announced U.S. Attorney David C. Weiss. Sentencing has been scheduled for February 27, 2019 before Chief Judge Leonard P. Stark of the District of Delaware.
Yung’s plea stems from conduct that one federal judge referred to as a “protracted, elaborate, and brutal effort to engage in the online destruction of an innocent victim and his family.” And it all started with a law school interview.
In 2014, Yung applied for admission to a top national law school. As part of the law school’s admission process, he interviewed with an alumnus in Delaware – a person referred to in the Indictment as “Victim 1.” Yung performed poorly in this interview and the law school denied his application a week later.
Despite gaining acceptance to the University of Texas Law School, Yung embarked on a cyber stalking campaign to harass and intimidate Victim 1 and his family. Yung repeatedly published violent and sadistic statements about Victim 1 on the Internet – including descriptions of rape, lynching, sexual molestation, and graphic violence. As just one example, the defendant posted a false story about Victim 1 on a public website, which involved the abduction of an eight-year old girl from an elementary school. In this story, the defendant described kidnapping the little girl at gunpoint, cutting off her clothes with a knife, and raping her.
Yung also repeatedly posted personal ads on Craigslist and other websites with the intent that individuals interested in violent and sadistic sexual activity would go to Victim 1’s residence in the middle of the night. For example, on October 29, 2015, the defendant posed as a “cute blonde hottie” and posted an ad on Craigslist stating, among other things:
i need a big strong man to dominate me tonight . . . i like it when a man puts his hand around my throat and threatens me with a knife . . . then you pull my hair and take out your gun and threaten me . . . i’m a bad girl, and I need to be punished by a big strong man. send me a picture with you holding your gun. all others will be ignored.
Notably, the above ad was published a day after local police stopped a man outside of Victim 1’s residence in the middle of the night, who was looking for Victim 1’s wife. He was responding to a similar Craigslist ad and the defendant directed him to Victim 1’s residence.
Following a months-long investigation by the FBI - Wilmington Resident Office, and the U.S. Attorney’s Office, Yung was arrested in Austin, Texas in February 2017. He has been detained since and remains so pending sentencing.
U.S. Attorney Weiss stated the following, “Cyberstalking is a form of stalking that involves the use of technology as the means to instigate psychological violence against another person. The defendant’s conduct offers a disturbing example of the destructive potential of the Internet and social media. For 18 months the defendant pursued a sustained, sadistic course of conduct designed to terrorize his victim and the victim’s family—all because the defendant was denied admission to the law school of his choice. Our office continues to fight for victims who are tormented by those who seek to use the Internet and social media for such destructive purposes. The defendant must be held accountable for the damage he inflicted.”
The case is being prosecuted by Assistant U.S. Attorney Shawn A. Weede. In addition, Assistant U.S. Attorney Matthew B. Devlin, from the Western District of Texas, provided significant assistance in the matter.
Former Federal Correctional Officer Sentenced to 10 Years in Prison for Sexual Abuse, Bribery and Narcotics ChargesRead the Press Release
Earlier today, in federal court in Brooklyn, Armando Moronta, who previously served as a federal correctional officer employed by the United States Bureau of Prisons (BOP) at the Metropolitan Detention Center (MDC), was sentenced by United States District Judge Roslynn R. Mauskopf to 10 years’ imprisonment for four counts of sexual abuse of a ward, one count of soliciting bribes as a public official and one count of conspiring to distribute narcotics. The charges stemmed from two separate indictments. As part of his sentence, Moronta is also required to forfeit $15,000 in bribe payments and to register as a sex offender. Moronta was suspended by the BOP in January 2017 after his initial arrest, and he pleaded guilty in November 2017. Moronta resigned from the BOP in December 2017.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Guido Modano, Special Agent-in-Charge, United States Department of Justice, Office of the Inspector General (DOJ-OIG), and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Over a period of months, Moronta flagrantly violated his sworn duty as a law enforcement officer, sexually abused inmates entrusted to his supervision and undermined the safety of his fellow officers and others in exchange for bribes,” stated United States Attorney Donoghue. “Today’s sentence reflects the seriousness of the defendant’s crimes and demonstrates our steadfast commitment to holding accountable correctional officers who abuse their power and the inmates they are responsible for.”
“Moronta engaged in an egregious abuse of power and breach of the public’s trust. Today’s sentence demonstrates that such corruption will not be tolerated in our federal prisons or our law enforcement community,” stated DOJ-OIG Special Agent-in-Charge Modano. “The DOJ-OIG will work tirelessly to hold individuals who engage in such conduct accountable to the fullest extent of the law.”
“Corrections officers are in place to maintain order, not flagrantly abuse their power. Mr. Moronta not only accepted money for smuggling in contraband, he sexually abused female inmates,” stated FBI Assistant Director-in-Charge Sweeney. “The abuse of power by officers sworn to protect is one of the FBI’s priorities because no one is above the law, especially those who took an oath to uphold it.”
Between March and December 2016, on approximately 12 occasions, Moronta smuggled cellular telephones and narcotics, including the synthetic narcotic “K2” and Suboxone, into the MDC for use and distribution by male inmates in exchange for thousands of dollars in bribe payments. Separately, between May and June 2016, Moronta engaged in criminal sexual acts with three female inmates in his custody while he was assigned to guard their unit. He committed these criminal sexual acts inside the Guard’s Office located within a female housing unit.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Nadia Shihata is in charge of the prosecution.
The Defendant:
ARMANDO MORONTA
Age: 40
Brooklyn, New YorkE.D.N.Y. Docket Nos. 17-CR-036 (RRM) and 17-CR-279 (RRM)
Former Canadian Moneygram and Western Union Agent Sentenced to 12 Years’ Imprisonment for $4.4 Million Fraud SchemeRead the Press Release
HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lucas Obi, age 53, of Toronto, Canada, a former Western Union and MoneyGram agent, was sentenced to 12 years’ imprisonment on October 23, 2018, by United States District Court Judge Yvette Kane for defrauding thousands of victims out of approximately $4.4 million via international mass marketing, consumer fraud schemes.
According to United States Attorney David J. Freed, Lucas Obi, A/K/A “Suleman Ajukwusualim, was the owner/operator of a Western Union and a MoneyGram agency, both of which were known as Canada Cash Express, Inc., and located at the same Toronto address. Obi conspired with others between 1999 and 2010 to commit the wire fraud offense and was the leader of a group of fraud complicit MoneyGram and Western Union agents in the greater Toronto area. Obi was the group’s mentor and leader who taught others how to engage in mass marketing fraud and complicit money transfer agent activity. Obi trained the agents on how to process fraud induced money transfers and allowed them to keep a cut, 5% to 10%, for their role in the schemes. Obi also recruited persons to act as money transfer outlet owners on his behalf, gathered fraudulently induced money transfer checks from other fraud complicit agents, and deposited the checks with fictitious name endorsements into his bank accounts. Obi then distributed the fraud proceeds, less his cut, to numerous greater Toronto area fraudsters and money launderers.
The known total dollar loss associated with all fraud reported money transfers paid out at Canada Cash Express and Obi’s other fraud complicit check-pooling agents is $4,482,927. Pursuant to a deferred prosecution agreement with MoneyGram, a $100 million victim restitution fund was established for victims of Obi’s fraud. A $586 million restitution fund is also being established for victims who sent their money via Western Union pursuant to the filed, January 19, 2017, Western Union deferred prosecution agreement with the U.S. Attorney’s Office for the Middle District of Pennsylvania and the U.S. Justice Department.
Judge Kane ordered Obi to pay $2,393,906.34 in restitution to 2,641 Western Union and MoneyGram victims. The restitution was reduced from the total loss amount of $4,482,927 due to monies that were previously paid out by MoneyGram.
The case was investigated by the Harrisburg Office of the U.S. Postal Inspection Service, the Federal Trade Commission, the Toronto Police Service, the Royal Canadian Mounted Police, the Ontario Provincial Police, the Canadian Anti-Fraud Centre, the Canada Competition Bureau, and the Ministry of Government Services. The Justice Department's Office of International Affairs provided assistance with the extradition of the defendant. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.
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Former Brooklyn Assemblywoman Sentenced to Prison for Multiple Fraud Schemes and Witness TamperingRead the Press Release
Former New York State Assemblywoman Pamela Harris was sentenced today by United States District Judge Jack B. Weinstein in federal court in Brooklyn to six months in prison and 400 hours of community service following her conviction for two counts of wire fraud, one count of disaster relief fraud and one count of witness tampering. As part of the sentence, the Court imposed restitution of $70,400 and forfeiture of $10,000. Harris was arrested on January 9, 2018, resigned from the New York State Assembly on April 2, 2018 and pleaded guilty on June 12, 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Mark G. Peters, Commissioner, New York City Department of Investigation (DOI), announced the sentence.
“With today’s sentence, Pamela Harris has been held responsible for stealing tens of thousands of dollars in government funds set aside for underserved children and funds allocated for victims of Hurricane Sandy, as well as lying and presenting fraudulent documents to the FBI when her crimes were uncovered,” stated United States Attorney Donoghue. “She committed these fraudulent acts both before and while she served as a New York State Assemblywoman in Brooklyn, betraying the trust placed in her by her constituents. This Office, together with our law enforcement partners, will continue to hold accountable corrupt public officials who act as if they are above the law.”
“Today, this onetime state Assemblywoman, convicted of using the disaster of Superstorm Sandy for personal profit, was held to account for her crimes with a decisive price – prison,” stated DOI Commissioner Peters. “Her illegal conduct exemplifies the term, ‘corrupt politician,’ claiming to be a public servant while she stole from disaster relief funds intended to assist victims of Hurricane Sandy, some of whom were constituents in her district trying to recover from the storm. This type of corruption is what saps public confidence in government. Today’s sentencing offers a measure of justice. DOI is gratified to have worked with the United States Attorney for the Eastern District of New York and the FBI on this successful investigation and prosecution.”
According to the indictment, court filings and facts presented during the sentencing hearing, between 2012 and 2017, Harris defrauded the Federal Emergency Management Agency (FEMA) and the New York City Council (NYC Council), among other entities, of tens of thousands of dollars, and then pressured witnesses to lie to FBI agents who were conducting the grand jury investigation into her fraud schemes.
Between 2012 and 2014, Harris defrauded FEMA out of nearly $25,000 in temporary relocation funds by falsely claiming that she had been forced out of her Coney Island residence because of damage caused by Hurricane Sandy. In furtherance of the scheme, she claimed that she was paying rent in Staten Island and submitted fake lease agreements and fraudulent rent payment receipts to FEMA. In reality, Harris continued to live at her Coney Island residence and pocketed the FEMA payments for her own benefit. Harris subsequently made similar misrepresentations to other organizations providing hurricane relief funds, including New York City’s Build it Back Agency.
Between August 2014 and January 2017—both before and while she served as a New York State Assemblywoman—Harris defrauded the New York City Council of $45,600 in discretionary funding allocated to Coney Island Generation Gap (CIGG), a not-for-profit organization that she controlled. Harris falsely represented that she intended to use the funds to pay for rental space and to provide cash stipends to adolescents who participated in CIGG programs. In support of these claims, she submitted fraudulent lease agreements containing forged signatures and fraudulent sign-in sheets with forged signatures of the adolescents. When CIGG received the funds, Harris diverted them to her own bank account and used them to pay her personal expenses. Harris also misappropriated CIGG’s money from its bank accounts to fund her purchase of a sauna and a hot tub and to make mortgage payments on her residence.
Between March 2017 and September 2017, as the investigation into her fraudulent conduct progressed, Harris obstructed the investigation, including by pressuring close family members and a CIGG associate to lie to the FBI and destroy evidence.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Erik Paulsen and Robert Polemeni are in charge of the prosecution.
The Defendant:
PAMELA HARRIS
Age: 57
Brooklyn New YorkE.D.N.Y. Docket No. 18-CR-11 (JBW)
Fifty-Four Months in Prison for Defendant Part of Health Care Fraud SchemeRead the Press Release
LOUISVILLE, Ky. – U.S. District Court Judge Rebecca G. Jennings sentenced Ariel Borrego-Hernandez, of Naples, Florida, to 54 months in prison, followed by 3 years supervised release for health care fraud, money laundering, and drug trafficking, announced United States Attorney Russell M. Coleman.
The Court also ordered Borrego-Hernandez to pay $89,161.81 in restitution, and over $53,000 in fortified cash.
According to the evidence before the Court, beginning no later than on or about June 12, 2012, and continuing through on or about November 1, 2014, Lopez, Ledinson Chavez, Oskel Lezcano, Ariel Borrego-Hernandez, Sergio Betancourt and Yuriesky Diaz Rodriguez recruited unsuspecting chiropractors for employment in Louisville area chiropractic clinics in order to obtain and use the chiropractors’ names and National Provider Identifiers (NPI) to fraudulently bill insurance companies. Each chiropractor provided his/her National Provider Identifier (NPI) number to Lopez and Lezcano in order to credential the clinics with various insurance companies
Thereafter, the group of defendants recruited employees from Jeffboat and others to seek chiropractic services from the clinics. However, unbeknownst to the chiropractors, the clinics billed approximately $5,000,000 for methocarbamol injections (a muscle relaxant), using the patients’ names, dates of birth, insurance/policy numbers, addresses, and patient IDs/Social Security Numbers for injections. Most of the patients from Jeffboat were paid to go to the clinics by the defendants and were told the injections were being billed, according to testimony during trial.
Borrego-Hernandez, Lopez, Lezcano, Betancourt, and Chavez operated and controlled multiple chiropractic clinics in the Louisville area including: Xpress Diagnostics Center, Inc.; Prudential Chiropractic Medical Center, PLLC; Klondike Chiropractic Medical Center, LLC; Be Well Chiropractic Center, Corp.; Chiropractic and Medical Center, LLC, even though the clinics were placed in various chiropractors’ names.
According to additional court documents on or about March 14, 2017, and March 17, 2017, while on pre-trial release, Borrego and Lopez conspired to traffic in marijuana – which caused about 109 pounds of marijuana to be transported from Colorado to Kentucky.
Assistant United States Attorneys Joseph Ansari, Lettricea Jefferson-Webb and Christopher Tieke prosecuted the case and were assisted by Bob Masterson as health care fraud investigator. The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigation, the Louisville Metro Police Department, and the National Insurance Crime Bureau.
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Felon Sentenced to 10 Years in Prison for Unlawful Possession of A Firearm and Ammunition After Threatening to Shoot A WomanRead the Press Release
LAS VEGAS, Nev. – A Las Vegas felon who was convicted in July of unlawful possession of a firearm and ammunition after threatening to shoot a woman during an altercation was sentenced today to 120 months in federal prison to be followed by three years of supervised release, announced U.S. Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Ray Roundtree for the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jacqueline Moore, 38, was found guilty by a jury of one count of felon in possession of a firearm and one count of felon in possession of ammunition. United States District Judge Kent J. Dawson presided over the three-day trial and sentencing hearing.
On October 27, 2017, Moore got into an altercation with a woman at a barbeque near “B” Street and Monroe Street in Las Vegas. The woman left the barbeque and Moore followed her to the Elk’s Lodge parking lot located at 600 West Owens Avenue. Moore confronted the woman and broke her car window and a tail light. She also threatened to shoot the woman. After Moore fled the scene, an eyewitness called the police who took her into custody a short time later. Officers found a .25 caliber pistol and a single round of .25 caliber ammunition in her purse and vehicle. Moore is prohibited from possessing a firearm and ammunition due to her prior felony convictions in Clark County for assault with a deadly weapon and attempted battery with substantial bodily harm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Allison Reese and Phillip N. Smith, Jr. prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. For more information about PSN, visit www.justice.gov/usao-nv
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Federal Grand Jury Indicts North Suburban Man on Child Pornography and Extortion ChargesRead the Press Release
CHICAGO — A federal indictment accuses a north suburban man of threatening to publish sexually explicit photos of an underage girl unless she created child pornography for him.
DAVID J. COTTRELL, 28, of Niles, is charged with two counts of transportation of child pornography, one count of extortion, one count of inducement of a minor to engage in illegal sexual activity, one count of attempting to produce child pornography, one count of production of child pornography, and one count of possession of child pornography.
Cottrell appeared Tuesday in federal court in Chicago before U.S. Magistrate Judge Michael T. Mason and was ordered detained in federal custody. A status hearing was set for Nov. 6, 2018, at 9:00 a.m., before U.S. District Judge Robert W. Gettleman. The indictment was returned Oct. 17, 2018, and Cottrell has pleaded not guilty to the charges.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The government is represented by Assistant U.S. Attorney Charles W. Mulaney.
According to the indictment and the government’s memorandum in support of detention, Cottrell in 2014 induced the underage victim into sending him sexually explicit photos through the internet. After collecting semi-nude photos of the victim, Cottrell informed her that he knew her real name, the name of her school, and her parents’ jobs, and he threatened to post the images online and send them to her family unless the girl sent him additional, more explicit images, the government’s memorandum states. The victim complied with Cottrell’s demands by creating and sending additional photos and videos to him, the memorandum states.
Cottrell contacted the victim on a near-daily basis until her parents discovered the messages in 2017 and contacted law enforcement, according to the memorandum. While communicating with the victim, Cottrell used the names “sevendollarcab” and “b88785” on the Kik and Snapchat online applications, and introduced himself as “Dave,” the memorandum states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Cottrell faces a mandatory minimum sentence of 15 years in prison and a maximum term of life in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678, or file a report on its website, www.cybertipline.com.
Federal Grand Jury Indicts Eleven Baltimore Men for a Heroin Trafficking Conspiracy Allegedly Operating in the Gilmor Homes Area of BaltimoreRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment charging 11 Baltimore men in a heroin trafficking conspiracy that operated in the Gilmor Homes area of Baltimore. Several of the defendants are also charged with conspiracy to possess a firearm in furtherance of a drug trafficking crime, and related gun and drug counts. The superseding indictment was returned on October 16, 2018, and was unsealed late yesterday.
The defendants charged in the superseding indictment unsealed today are:
Rodney Blue, age 28; Tyrek Butler, age 26; Duane Day, age 26; Dakwan Gray, age 20; Juan Hill, age 25; Diamonte Jackson, age 25; Davon Johnson, age 30; Allen Jones, a/k/a Wax, age 23; William Stewart, a/k/a Pimp, age 31; Anthony Washington, age 28; and
Andrew Webb, a/k/a Geetchi, age 32.The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; Interim Police Commissioner Gary Tuggle of the Baltimore Police Department; Baltimore City Sheriff John W. Anderson; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
“Heroin dealers sell death and despair. We will continue to work with our law enforcement partners to identify and disrupt drug trafficking organizations, especially those who use guns,” said Maryland U.S. Attorney Robert K. Hur. “Before picking up a gun, drug dealers should understand that there are no suspended sentences or parole in the federal system, and that they will serve their federal sentences in prisons far from home. Federal time is different. Please put down the gun.”
According to the superseding indictment and other court documents, the indictment is a result of the investigation of a drug trafficking organization (DTO) that allegedly distributes large amounts of heroin in and around the Gilmor Homes public housing development in Baltimore. Court documents allege that the group generally operates drug “shops” that sell drugs from 7:00 a.m. to as late as 2:00 a.m., in the areas of Stricker, School, and Presstmen Streets. Members of the DTO are alleged to have participated in street-level drug sales, supervised drug sales, and collected drug proceeds, and to have used firearms in the course of their drug trafficking.Each of the defendants faces a maximum of 20 years in prison for conspiracy to distribute heroin. Butler, Day, Jones, and Webb also face a maximum of 10 years in prison for conspiracy to possess a firearm in furtherance of a drug trafficking crime. Day and Butler each face a maximum of life in prison for possession of a firearm in relation to a drug trafficking crime, and 10 years in prison for possession of a firearm and ammunition by a previously convicted felon. Blue, Hill, Gray, Washington, Jackson, Johnson, and Webb also face a maximum of 20 years in prison for each count of possession with intent to distribute a controlled substance.
The defendants are expected to have an initial appearance in U.S. District Court in Baltimore. Blue, Gray, and Stewart had initial appearances today before U.S. Magistrate Judge J. Mark Coulson and were ordered to be detained pending trial.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 DEA, HSI-Baltimore, the Baltimore Police Department, the Baltimore City Sheriff’s Office, the Baltimore County Police Department, and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Christopher Rigali, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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FCI Danbury Inmate Charged with Possessing WeaponsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an indictment today charging JULIAN DeJESUS CASTILLO, 34, with possession of contraband in a federal prison.
The indictment alleges that Castillo, an inmate at the Federal Correctional Institution in Danbury, Connecticut, possessed weapons, or objects designed or intended to be used as weapons, on February 8, 2018.
If convicted, Castillo faces a maximum term of imprisonment of five years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Drug Distribution Conspirator Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge Brian A. Jackson sentenced Norberto Aaron Bejarano, age 32, of Houston, Texas, to 33 months in federal prison following his conviction for distribution of 500 grams or more of cocaine. The Court further sentenced BEJARANO to 3 years of supervised release following his term of imprisonment. BEJARANO must also forfeit $69,920 in drug proceeds. Upon release from prison, Bejarano will be removed from the United States and returned to his home country of Mexico.
BEJARANO was charged as a result of an extensive federal, state, and local investigation aimed at a drug trafficking network based in Ascension Parish and covering Louisiana, Texas, and Mississippi. The drug trafficking organization, led by Arthur Johnson (“Johnson”), distributed multi-kilogram quantities of cocaine, crack cocaine, and heroin in and around Hattiesburg, Mississippi, and Ascension Parish Louisiana. BEJARANO assisted the Johnson drug trafficking organization by transporting kilogram quantities of cocaine from Texas to Louisiana for further distribution in and around Ascension Parish, Louisiana, and Hattiesburg, Mississippi, by members of the Johnson drug trafficking organization.
U.S. Attorney Fremin stated, “This is yet another step in reaching our office’s goal of reducing crime and aggressively enforcing federal law. The people of Ascension Parish are better off now that this defendant is off the streets. I am grateful for the hard work and efforts of our prosecutors and many local, state and federal partners who worked tirelessly on this very important matter.”
Eric J. Rommal, FBI New Orleans Special Agent in Charge stated, “I commend the tremendous efforts put forth by the FBI Baton Rouge Resident Agency Office, Ascension Parish Sheriff's Office, the East Baton Rouge Sheriff’s Office and the Baton Rouge Police Department in removing a significant amount of illegal narcotics from our streets. Through their persistence to identify, track, and apprehend drug traffickers in South Central Louisiana, our children and families have a safer community."
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This OCDETF operation was investigated by the FBI Baton Rouge Capitol Area Gang Task Force, which is an FBI Safe Street Task Force that includes the East Baton Rouge Sheriff’s Office and Baton Rouge Police Department, with assistance from the Ascension Parish Sheriff’s Office, the FBI Hattiesburg, Mississippi, Resident Agency, and Hattiesburg, Mississippi Police Department. This matter is being prosecuted by Assistant United States Attorney Jamie A. Flowers, Jr.
Drug Dealer Who Possessed Gun Sentenced to Six Years in Federal PrisonRead the Press Release
A man who distributed marijuana and possessed a firearm was sentenced today to six years in federal prison.
Tyran Collins, age 19, from Waterloo, Iowa, received the prison term after a May 4, 2018 guilty plea to possession of a firearm and ammunition as a drug user, possession with intent to distribute marijuana, and possession of a firearm in furtherance of a drug trafficking crime.
In a plea agreement, Collins admitted that on October 29, 2017, he was an unlawful user of marijuana, and that he possessed a loaded 9mm handgun. Collins also admitted he possessed eleven individual bags of marijuana, totaling 26 grams. Collins admitted he intended to distribute the marijuana to other individuals. Law enforcement discovered the marijuana and handgun when they stopped a car in which Collins was a passenger. During the traffic stop, Collins threw the gun onto the driver’s lap and instructed her to hide it. Police later recovered the gun in the center console of the car and learned that it had previously been reported stolen.
Collins was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Collins was sentenced to 72 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Collins is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, and Firearms, assisted by the Black Hawk County Sheriff’s Office and the Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2091.
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Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was sentenced yesterday in federal court in Boston for illegally reentering the United States after being deported.
Herminio Polanco-Huma, 26, a Dominican national formerly residing in Lawrence, was sentenced by U.S. District Court Judge Nathaniel Gorton to six months in prison and one year of supervised release, to be served consecutive to a three year and one day state sentence he is currently serving for fentanyl distribution. In June 2018, Polanco-Huma pleaded guilty to one count of illegal reentry of a deported alien. Upon completion of his sentences, he will be subject to deportation.
In February 2017, federal law enforcement encountered Polanco-Huma in Florida and determined that he was illegally present in the United States. Polanco-Huma was placed into removal proceedings, and on Feb. 21, 2017, he was deported to the Dominican Republic.
In November 2017, Polanco-Huma was encountered while awaiting trial at the Essex County House of Corrections. Polanco-Huma’s prints were obtained and found to be a positive match to prints contained in his Alien File. In May 2018, Polanco-Huma was convicted in Essex Superior Court of distribution of fentanyl and sentenced to three years and one day in prison.
United States Attorney Andrew E. Lelling and Todd M. Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Dean Skelos, Former New York State Senate Leader, Sentenced to 51 Months, Son Adam Skelos Sentenced to 4 Years in Manhattan Federal CourtRead the Press Release
Robert Khuzami, Attorney for the United States, acting under authority conferred by 28 U.S.C. § 515, announced today that former New York State Senate Majority Leader DEAN SKELOS was sentenced today to 51 months in prison after having been found guilty by a federal jury of using his official position to obtain more than $300,000 in bribes and extortion payments that were paid to his son, ADAM SKELOS, in exchange for DEAN SKELOS’s official acts. ADAM SKELOS, who was convicted by the same jury, was also sentenced to four years in prison. The defendants had previously been found guilty of the same offenses by a jury in December 2015, but their convictions were overturned by the U.S. Court of Appeals for the Second Circuit as a result of the Supreme Court’s decision in McDonnell v. United States. DEAN SKELOS and ADAM SKELOS were sentenced in Manhattan federal court by U.S. District Judge Kimba M. Wood, who also presided over both jury trials.
Deputy U.S. Attorney Robert Khuzami said: “Former State Senate Majority Leader Dean Skelos was entrusted with enormous power and responsibility, power a unanimous jury of his peers has now concluded for a second time that Skelos repeatedly abused in pursuit of illegal payments to his son, Adam Skelos. The sentences imposed today are but a small down-payment to correct the damage they did to our citizens’ faith in state government. At the same time, these same citizens can have faith that those who abuse the public trust for their personal benefit will be caught and sentenced to substantial prison terms.”
In imposing today’s sentence of DEAN SKELOS, Judge Wood found that he had lied during his testimony at trial, and cited several examples of DEAN SKELOS’s dishonesties. Judge Wood increased his sentence to account for his false testimony.
According to the evidence introduced at trial, court filings, and statements made in Manhattan federal court:
From 2011 to 2015, DEAN SKELOS served as Majority Leader and Co-Majority Leader of the New York State Senate, a position that gave him significant power over the operation of New York State government. DEAN SKELOS repeatedly used this power to pressure companies with business before New York State to make payments to his son, ADAM SKELOS, who substantially depended on these companies for his income. DEAN SKELOS and ADAM SKELOS were able to secure these illegal payments through implicit and explicit representations that DEAN SKELOS would use his official position to benefit those who made the payments, and punish those who did not. In total, DEAN SKELOS obtained over $300,000 in payments to ADAM SKELOS through persistent and repeated pressure applied to senior executives of three different companies that needed legislation passed in the New York State Senate and other official actions from DEAN SKELOS.
The Glenwood Scheme
Beginning in late 2010, and continuing for approximately two years, DEAN SKELOS repeatedly solicited payments for ADAM SKELOS from representatives of Glenwood Management Corp. (“Glenwood”), a major New York City real estate company. DEAN SKELOS’s solicitations for payments to ADAM SKELOS took place during the same meetings when Glenwood’s representatives were asking for DEAN SKELOS’s assistance with New York State legislation that was crucial to Glenwood’s profitability. As a result of the sustained pressure from DEAN SKELOS, representatives of Glenwood arranged for a $20,000 direct payment to ADAM SKELOS and further arranged for Abtech Industries (“Abtech”), an Arizona-based storm water technology company in which Glenwood’s founding family owned a stake, to make $4,000 monthly payments to ADAM SKELOS. Glenwood arranged for these payments to ADAM SKELOS due to the company’s substantial dependence on DEAN SKELOS for real estate tax abatements and other real estate legislation favorable to Glenwood, and based in part on statements from DEAN SKELOS that he would punish those in the real estate industry who defied him.
The Abtech Scheme
After successfully obtaining ADAM SKELOS’s Abtech consulting contract for $4,000 per month, DEAN SKELOS assisted Abtech in causing Nassau County to issue a request for proposal (“RFP”) for a public works project that was tailored to Abtech’s storm water technology. DEAN SKELOS and ADAM SKELOS then threatened to use DEAN SKELOS’s official powers to block Abtech’s bid for the RFP unless the company sharply increased ADAM SKELOS’s payments. Abtech ultimately agreed to increase ADAM SKELOS’s payments to $10,000 per month because the company feared that, if it did not meet the defendants’ demands, it would lose the Nassau County contract that was critical to its business. In return for the payments to ADAM SKELOS, and to ensure that they would continue, DEAN SKELOS facilitated the approval of Abtech’s $12 million contract with Nassau County and thereafter took numerous additional official actions to benefit Abtech.
For example, when Abtech and ADAM SKELOS believed Nassau County was insufficiently funding the company’s project, DEAN SKELOS pressured Nassau County officials to make additional funds available. In January 2015, DEAN SKELOS was intercepted in a call with the Nassau County Executive in which he asked for an explanation for the lack of funding, complaining on behalf of ADAM SKELOS that “somebody feels like they’re getting jerked around the last two years.” The next day, DEAN SKELOS traveled with the County Executive and his Deputy to the funeral of a New York City Police Department officer, where DEAN SKELOS reiterated in person his demand that the County expedite payments to Abtech.
DEAN SKELOS also used his official position in an attempt to direct a portion of a $5.4 billion sum that the State had recovered in litigation with financial services companies (the “Settlement Funds”) in a way that would benefit water projects and contracts that were being pursued by Abtech. For example, at the same time ADAM SKELOS was attempting to obtain additional Abtech storm water projects with local municipalities by claiming that the projects could be funded through State funds, DEAN SKELOS was advocating for a portion of the Settlement Funds to be allocated for storm water projects.
DEAN SKELOS also used his official position in an attempt to enact State “design-build” legislation that was being sought by Abetch and that Nassau County officials had explained was necessary to implement fully the $12 million contract with Abtech. Nassau County officials provided DEAN SKELOS with proposed legislation that DEAN SKELOS stated he would support if backed by the Governor. In a recorded call on ADAM SKELOS’s “burner” phone, ADAM SKELOS told a representative of Abtech that DEAN SKELOS had privately assured ADAM SKELOS that DEAN SKELOS was “going to be sure that [the design-build legislation] gets done.” Later, ADAM SKELOS told Abtech’s representatives that while design-build legislation would not be enacted as part of the April 2015 budget process, DEAN SKELOS would continue to pursue it in the legislative session continuing through June 2015. The defendants were arrested in May 2015 before their plan to enact the legislation could be completed.
The PRI Scheme
During the same time period as the Glenwood and Abtech schemes, DEAN SKELOS pressured yet a third company, called Physician Reciprocal Insurers (“PRI”), to pay ADAM SKELOS. PRI is a major medical malpractice insurance firm, whose existence depends on New York State legislation that exempts the firm from being liquidated even though its liabilities exceed its assets. Similar to the Glenwood scheme, DEAN SKELOS solicited payments to ADAM SKELOS from PRI during the same conversations when PRI was seeking DEAN SKELOS’s support for the extension of this legislation that was critical to PRI’s business.
In response to the pressure from DEAN SKELOS to find sources of payment to ADAM SKELOS, PRI agreed to, among other things, give ADAM SKELOS a full-time job with benefits. Even though ADAM SKELOS was expected to work 40 hours per week, he treated his PRI position as a “no show” job from the outset of his employment. When ADAM SKELOS’s supervisor told ADAM SKELOS that he was expected to show up to work, ADAM SKELOS berated him and told him “[g]uys like you . . . couldn’t shine my shoes. . . . And if you talk to me like that again, I will smash your fucking head in.” When the CEO of PRI told DEAN SKELOS that ADAM SKELOS was not showing up to work and was mistreating the other employees, DEAN SKELOS expressed no concern about ADAM SKELOS’s conduct and simply told the CEO to “[w]ork [it] out.” Based on this conversation, among others, the CEO understood that if he did not continue to pay ADAM SKELOS, despite his non-performance and misconduct at work, he was risking DEAN SKELOS taking legislative action against PRI. Later, when former Senator Alphonse D’Amato, one of PRI’s lobbyists, reiterated to DEAN SKELOS that ADAM SKELOS was not showing up to work and was being disruptive when he actually did show up, DEAN SKELOS also dismissed Senator D’Amato’s concerns and told him that ADAM SKELOS needed the income and benefits from PRI.
DEAN SKELOS did not inform any of the companies he pressured to pay ADAM SKELOS that, between 2011 and 2014, ADAM SKELOS was making between $230,000 and $441,000 per year.
During the time period that PRI was paying ADAM SKELOS, DEAN SKELOS repeatedly voted to extend PRI’s legislative protection from liquidation as well as other legislation that was being sought by PRI.
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In addition to the prison sentence, Judge Wood ordered DEAN SKELOS, 70, of Rockville Centre, New York, to pay a $500,000 fine. DEAN SKELOS also was sentenced to one year of supervised release. In imposing a fine on DEAN SKELOS, Judge Wood took into account the tax-payer funded pension that DEAN SKELOS would be receiving. In addition to the prison term, Judge Wood sentenced ADAM SKELOS, 36, also of Rockville Centre, to three years of supervised release.
DEAN SKELOS and ADAM SKELOS were found guilty by a unanimous jury on July 17, 2018, of conspiracy to commit extortion under color of official right, conspiracy to commit honest services wire fraud, three counts of extortion under color of official right, and three counts of soliciting and receiving bribes.
Mr. Khuzami praised the work of the Criminal Investigators of the United States Attorney’s Office and the Federal Bureau of Investigation, who jointly conducted this investigation.
This case was prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Edward B. Diskant, Douglas S. Zolkind, and Thomas A. McKay are in charge of the prosecution.
DEA Prescription Drug Take-Back Day is October 27Read the Press Release
BIRMINGHAM – Saturday is the Drug Enforcement Administration’s 16th National Prescription Drug Take-Back Day, announced U.S. Attorney Jay E. Town.
“Opioids that you no longer need are not just loaded guns sitting in your medicine cabinet. They are loaded guns with a hair trigger and no safety,” Town said. The opioid crisis in America is the deadliest in our history. Let’s do our part to protect our loved ones from prescription drug abuse, opioid addiction, and even potential progression to heroin use, and clean out our medicine cabinets and drop those drugs off for proper disposal.”
This weekend, more than 5,400 collection sites manned by more than 4,400 partner law enforcement agencies will be open 10 a.m. to 2 p.m. local time. The public can find a nearby collection site at www.DEATakeBack.com
or by calling 800-882-9539. (DEA cannot accept liquids, needles or sharps.)
The National Prescription Drug Take Back Day Initiative addresses a critical public safety and public health issue. Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The Environmental Protection Agency and the Food and Drug Administration have advised the public that flushing their prescription drugs down the toilet or throwing them in the trash pose potential safety and health hazards. The DEA prescription drug take back program provides an anonymous and safe way to dispose of prescription medications.
National Take Back Day has received robust public support since its inception in 2010. Last April, the public turned in 456 tons (912,305 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and nearly 4,700 of its local and tribal partners nationwide. In the New Orleans Field Division, the following amounts were collected last April: Louisiana – 4,800 pounds; Mississippi – 4,455 pounds; Alabama – 6,074 pounds; and Arkansas – 27,809 pounds.
Parents and children are encouraged to educate themselves about the dangers of drugs by visiting DEA’s interactive websites at www.JustThinkTwice.com, www.GetSmartAboutDrugs.com and www.dea.gov.
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Cuban National Pleads Guilty to Labor Trafficking and Alien SmugglingRead the Press Release
On October 22, 2018, a Cuban national pled guilty to smuggling three women into the United States and requiring them to pay off an imposed debt through forced labor.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations, (ICE-HSI), and Rick Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, (PBSO), made the announcement.
Ivan Madrigal Zamora, 46, of Cuba, who was living in Palm Beach County, plead guilty to two counts of forced labor trafficking, in violation of Title 18, United States Code, Section 1589(a), and two counts of encouraging and inducing an alien to reside in the United States, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(iv) & (B)(i). At sentencing before U.S. District Judge Robin L. Rosenberg, on January 11, 2019, the defendant faces a combined statutory maximum sentence of 60 years in prison.
According to court records, including an agreed upon factual proffer, Zamora entered the United States through Mexico, by claiming asylum in May 2016. He entered with a female, who was a Cuban National, having traveled with her from Cuba beginning in February 2016. Upon arriving in Florida, Zamora had this woman work in Palm Beach County strip clubs to pay him a smuggling debt of over $10,000. Zamora smuggled a second female from Cuba to Florida, via Mexico, after providing her with fake identification information. Like the first victim, Zamora forced the second victim to work in strip clubs to pay him a $26,000 smuggling debt. Then, in early 2017, Zamora had a third female victim smuggled from Cuba, by wiring money to smugglers throughout Central America. Upon arriving through the Mexico-Texas border, the third victim was arrested and detained for more than two months. After posting her bond, Zamora flew the third victim to Florida in July 2017. Zamora then ordered the woman to work in strip clubs to pay back him a $26,000 smuggling debt. Within three weeks, the third victim escaped Zamora and called 911.
The court record further indicated that during the course of the alien smuggling and forced labor trafficking, Zamora beat the three women and verbally threatened them and their families.
U.S. Attorney Fajardo Orshan commended the investigation efforts of ICE-HSI and PBSO in this matter. She thanked the Palm Beach County Human Trafficking Task Force for their assistance. This case is being prosecuted by Assistant U.S. Attorney Gregory Schiller.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Criminal Defense Attorney and Two Others Sentenced for Ill-Fated Drug Informant SchemeRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich has sentenced Steven Paul Burch (43, Cape Coral), a criminal defense attorney, to 30 months’ imprisonment for conspiring to distribute heroin. The Court also ordered Burch to forfeit his license to practice law. Burch pleaded guilty in August 2018. On October 18, 2018, the Florida Supreme Court permanently disbarred him.
According to court documents, in August 2015, Burch was arrested in Sarasota County for driving under the influence of alcohol and causing property damage. In an effort to reduce his charges and avoid punishment from the Florida Bar, Burch recruited co-defendant and client, Herbert Battle, to send packages of drugs through the mail that Burch could then report to law enforcement as a form of cooperation. In late-December 2015, Burch had a meeting at his law office with Herbert and his wife, Qualonda Battle. Unbeknownst to Burch and Herbert Battle, Qualonda Battle had recorded the conversation. In the recording, Burch discusses how the packages were going to be sent, where they were going to go, and how the conspirators would get away with it.
In March 2016, Battle shipped an ounce of heroin from California to Sarasota County. Battle sent the tracking number to his wife who, using a disposable phone, texted the tracking number to Burch, who then forwarded the tracking number to law enforcement. The package was intercepted at the FedEx warehouse in Bradenton, where a search of the package revealed an ounce of heroin that had been concealed in a bag of beef jerky.
Herbert and Qualonda Battle previously pleaded guilty to conspiracy. Herbert Battle was sentenced to 33 months’ imprisonment and Qualonda Battle was sentenced to five years’ probation.
This case was investigated by the FBI, with assistance from the Sarasota County Sheriff’s Office, the Drug Enforcement Administration, the Manatee County Sheriff’s Office, the State Attorney’s Office (12th Judicial Circuit), and the Florida Bar Association. It was prosecuted by Assistant United States Attorneys Dan Baeza and Diego Novaes.
Couple Indicted for Embezzling $14.5 Million from Retirement FundsRead the Press Release
A federal grand jury indicted a Red Oak, Texas couple who allegedly embezzled $14.5 million from retirement plans they managed, U.S. Attorney for the Northern District of Texas Erin Nealy Cox announced today.
Jeffrey Richie, 53, and Wendy Richie, 58, co-owners of Vantage Benefits Administrators, were charged with conspiracy, theft from an employee benefit plan, wire fraud, and aggravated identify theft.
According to the indictment, Vantage served as third party administrator for dozens of retirement funds, including several 401(k)s. With her husband’s knowledge, Ms. Richie -- posing as various beneficiaries -- allegedly submitted fraudulent distribution requests to the retirement fund custodian, Matrix Trust Co. Instead of depositing the money into beneficiaries’ accounts, however, she transferred it into Vantage’s operating account. The couple allegedly used those funds to pay Vantage payroll and other operating expenses, as well as personal expenses, including mortgage and escrow payments, farming equipment, and home décor.
The Richies misappropriated funds from at least 1,000 plan participants in at least 20 employer’s retirement plans, prosecutors say.
“This couple took advantage of innocent people who were working hard and saving for their future,” said Nealy Cox. “We cannot permit such brazen financial misconduct to go unchecked.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to U.S. Department of Labor programs. We will continue to work with DOL’s Employee Benefits Security Administration and our law enforcement partners to safeguard retirement benefits intended for American workers,” stated Steven Grell, Special Agent-in-Charge, Dallas Region, U.S. Department of Labor Office of Inspector General.
"Theft from pension funds violates the law and deprives plan participants of their hard-earned retirement benefits," said Deborah Perry, Employee Benefits Security Administration (EBSA) Regional Director, Dallas. "The U.S. Department of Labor will continue to aggressively investigate fiduciaries and others who misuse assets of private-sector benefit plans."
If convicted on all counts, the Richies face up to 81 years in federal prison.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
The Department of Labor – Office of Inspector General, the Federal Bureau of Investigation, the Department of Labor’s Employee Benefits Security Administration, and the Texas State Auditor’s Office conducted the investigation. Assistant U.S. Attorney Christopher Stokes is prosecuting the case.
Convicted Felon Sentenced to Twenty-Five Years in Prison for Possessing a Sawed-Off Shotgun and AmmunitionRead the Press Release
A Waterloo man and convicted felon who possessed a sawed-off shotgun, shotgun shells, and other ammunition was sentenced today to twenty-five years in federal prison.
Armando Adame, age 27, from Waterloo, Iowa, received the prison term after a May 10, 2018 guilty plea to possession of a firearm by a felon, possession of ammunition by a felon, and possession of an unregistered sawed off shotgun.
In a plea agreement, Adame admitted he possessed a twelve-gauge shotgun on October 25, 2017. This shotgun had an overall length of 16.77 inches and approximate barrel length of 10.45 inches, making it a “sawed-off shotgun” for purposes of the National Firearms Registration and Transfer Record, requiring that the shotgun be registered. Adame had not registered the shotgun. Adame also admitted that on November 17, 2017, he possessed shotgun shells and .22 caliber ammunition. The firearms and ammunition were discovered when police executed a search warrant on a South Hackett home in Waterloo where Adame was staying. At the time Adame possessed the shotgun and the ammunition, he was a convicted felon having been previously convicted of conspiring to commit a forcible felony and felon in possession of a firearm.
Adame was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Adame was sentenced to 300 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Adame is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by y the Iowa Division of Criminal Investigation, the Grundy County Sherriff’s Office, and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2096.
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Controller sentenced to Prison for EmbezzlementRead the Press Release
St. Louis, MO – Jennifer Saake was sentenced to 46 months imprisonment for her wire fraud conviction related to a scheme to defraud her ex-employer of approximately $1.4 million. She was also ordered to pay restitution in the amount of $1,323,671.05.
According to court documents, between April 2010 and November 2017, Saake fraudulently diverted $1.4 million of company funds to her own bank accounts. As part of her scheme to defraud, Saake marked the transactions as “confidential” in the banking software so as to prevent others in the company from seeing them. Saake also created false journal entries and made false payable and bank reconciliation adjustments in the accounting records. Saake then used the proceeds from her scheme to defraud for her personal gain, including to improve her residence, to pay for her children’s education expenses, to make vehicle lease payments, and to pay for living expenses. In addition, Saake used some of her criminal proceeds to purchase equity interests in Company investments that paid out more than $160,000 in dividends and distributions.
“Today’s sentencing is a reminder that financial crimes are not victimless crimes,” said Trevor Fenwick, Special Agent in Charge of the U.S. Secret Service St. Louis Field Office. “The defendant victimized her employer for her own personal gain. The Secret Service will continue to investigate and pursue prosecution of those who engage in financial fraud.”
This case was investigated by the United States Secret Service. Assistant United States Attorney Kyle T. Bateman is handling the case for the U.S. Attorney’s Office.
Coal Company Executive Sentenced to 30 Months in Prison for Bribing State LegislatorRead the Press Release
BIRMINGHAM – A coal company executive who was in a scheme to bribe a state legislator to use his office to oppose Environmental Protection Agency Actions in north Birmingham, received a federal prison sentence today of 30 months, announced U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp Jr. and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Thomas J. Holloman.
District Judge Abdul Kallon sentenced David Lynn Roberson, 67, to 30 months in prison, $25,000 fine, and one year supervised release, for bribing former Alabama Rep. Oliver Robinson with a $375,000 contract paid to him through his non-profit Oliver Robinson Foundation over the past two years. He will be on bond pending appeal.
Roberson was convicted on July 23, 2018 of bribery, honest services wire fraud, conspiracy and money laundering conspiracy.
Robinson pleaded guilty in September 2017 to the conspiracy, bribery, wire fraud, and tax evasion.
“The investigation and prosecution into Roberson not only lead to his conviction, but a just and stiff sentence”, Town said. “I am extremely proud of our agents, our prosecutors, and thankful for the dutiful work of the judge and jury. The victims in this case have been given a voice and everyone, especially Roberson, has heard it with unmistakable clarity: the citizens of Alabama will not tolerate corruption and federal prison awaits those who dare test that resolve.”
“I hope the message is clear”, Sharp said. “If you bribe a public official expect the FBI to investigate you, the U.S. Attorney to prosecute you, and you will answer for your crimes. Public corruption is the FBI’s top criminal priority for a reason and we will continue to root it out at every level.”
The FBI and IRS investigated the case, which Assistant U.S. Attorneys George Martin, Robin Beardsley Mark and John B. Ward prosecuted.
Cleveland man indicted for selling cocaine laced with opioids that caused fatal overdose this summerRead the Press Release
A Cleveland man was indicted in federal court for selling drugs that resulted in a fatal overdose of a man inside a hotel in downtown Cleveland in July.
Terry Lee Christian, 35, was indicted Wednesday on one count of distribution of controlled substances, which included a potential sentencing enhancement for causing death. He was also indicted on one count of using a phone to facilitate a felony drug offense.
Christian was arrested Monday and remains in custody.
Christian is accused of causing the death of a person identified in court papers as S.K. on July 13.
“This case is yet another reminder that any drug people are buying likely contains fentanyl, which can kill even in very small doses,” U.S. Attorney Justin Herdman said. “By all accounts, the victim in this case believed he was buying cocaine, not opioids. This epidemic is cutting across all demographics and people need to understand there is no safe amount of drugs that can be used recreationally.”
“This case highlights the collaboration between the Cleveland Division of Police Heroin Death Investigators, the Drug Enforcement Administration, the Cuyahoga County Regional Forensic Science Laboratory and the Northern Ohio United States District Attorney’s Office,” said Cleveland Police Chief Calvin D. Williams. “The indictment of Mr. Christian should serve as an example to those trafficking in these dangerous and deadly narcotics. Through thorough investigations and the efforts of the attorneys who prosecute the cases, these criminals can be held accountable at the highest level.”
DEA Special Agent in Charge Timothy Plancon said: “This death underscores the seriousness of the opioid crisis plaguing northern Ohio and the need for dedicated collaboration from law enforcement. The DEA, Cleveland Division of Police and the United States Attorney’s Office will continue to expend our time, energy and resources in an effort to stem the tide against this epidemic.”
Members of the Cleveland Division of Police’s Heroin Involved Death Investigations Unit responded to a drug overdose at a hotel room in Cleveland on July 14. Officers observed a bag of suspected cocaine on the dresser and suspected cocaine residue on the dresser and bathroom vanity, according to an affidavit filed in the case.
The narcotics were tested and found to be a mixture of heroin, cocaine and fentanyl. The packaging material was tested and DNA found on the package matched Christian, according to the affidavit.
A review of the victim’s phone and other evidence revealed the man who overdosed met with Christian on July 13 and several calls between them on that day. Shortly after the calls and meeting, the man who ovedosed made a hand-to-hand transaction with someone in a minivan, according to the affidavit.
This case was investigated by the Cleveland Division of Police and Drug Enforcement Administration. It is being prosecuted by Assistant U.S. Attorneys Vasile Katsaros and Kathryn Andrachik.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only an accusation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Clarksburg man guilty of his role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Rocky Douglas Idleman, of Clarksburg, West Virginia, was found guilty today of methamphetamine distribution and firearms charges after a three-day trial, United States Attorney Bill Powell announced.
Idleman, age 39, was found guilty of one count of “Conspiracy to Distribute More Than 50 Grams of Methamphetamine,” one count of “Distribution of Methamphetamine,” two counts of “Unlawful Possession of Firearm,” and one count of “Carry a Firearm During a Drug Trafficking Crime.” Idleman committed the crimes from March 2016 to September 2017 in Upshur County and elsewhere.
“I want to thank the jury for their service, our law enforcement partners and our trial team for their hard work. We will continue to vigorously prosecute those who exhibit violent conduct and distribute illegal drugs in our district. There is no place they can hide,” said Powell.
Idleman faces 15 years to life incarceration for the charges. 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 was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives; the Drug Enforcement Administration; The Mountain Region Drug & Violent Crime Task Force; the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Upshur County Sheriff’s Office; the Lewis County Sheriff’s Office; the Buckhannon Police Department; and the Weston Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.U.S. District Judge John Preston Bailey presided.
Citizen of the Dominican Republic Sentenced to 57 Months in Prison for Trafficking "Black Tar" HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that HUGO TEJEDA, 26, a citizen of the Dominican Republic last residing in Waterbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 57 months of imprisonment for trafficking “black tar” heroin.
According to court documents and statements made in court, in August 2015, the Drug Enforcement Administration received information that an individual was in possession of approximately 1.5 kilograms of “black tar” heroin from Mexico and was searching for a buyer. The DEA subsequently identified the individual as Tejeda, and Ivan Lerma and Vladimir Rodriguez-Lara as his associates.
On August 10 and August 20, 2018, Tejeda drove Lerma to meetings at which Lerma supplied black tar heroin to confidential informants working for the DEA. On August 13, 2015, Tejeda drove Lerma to a meeting during which Lerma agreed to sell 1.5 kilograms of heroin to a confidential informant in exchange for $76,000.
Investigators arrested Tejeda, Lerma and Rodriguez-Lara on August 27, 2015, after they attempted to sell the 1.5 kilograms of heroin to the confidential informants.
On July 20, 2016, Tejeda pleaded guilty to one count of possession with intent to distribute, and distribution of, of heroin.
Lerma and Rodriguez-Lara pleaded guilty to related charges and were previously sentenced.
Tejeda faces immigration proceedings when he completes his prison term.
This investigation was conducted by the Bridgeport High Intensity Drug Trafficking Area Task Force, including personnel from the DEA, Connecticut State Police and the Norwalk, Stamford, Stratford and Milford Police Departments. The case was prosecuted by Assistant U.S. Attorney Alina Reynolds.
Cape Coral Man Sentenced to More Than 11 Years for Posting Child Pornography on the InternetRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Dillon Shutt (26, Cape Coral) to 11 years and 3 months in federal prison for distributing and possessing child pornography. Shutt had pleaded guilty on August 8, 2017.
According to court documents, Shutt used the KIK messenger app to convince an 11-year-old girl to send him images and videos of herself masturbating. Shutt then posted those images to a website, used the victim’s name to describe the images, and advertised the link on a social media site. In addition, Shutt possessed a total of 498 images and 36 videos on his cellphone depicting minors, as young as toddlers, being sexually abused.
This case was investigated by the FBI with assistance from the FBI’s Child Exploitation Task Force. It was prosecuted by Assistant United States Attorney Charles D. Schmitz.
This 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.
California Man Pleads Guilty to Defrauding Victims in IRS Impersonator ScamRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of YU ZHANG, 27, to one count of conspiracy to commit wire fraud. ZHANG, who was initially charged via criminal complaint on June 8, 2018, pleaded guilty yesterday before Senior Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minnesota.
According to the ZHANG’s guilty plea, from March 12, 2018, to June 8, 2018, he participated in a scheme to obtain money from victims through which co-conspirators posed as IRS agents and threatened to arrest victims unless immediate payments were made for allegedly “delinquent” taxes.
As part of the scheme, ZHANG’S co-conspirators made phone calls to victims in numerous states across the country and, posing as government agents, employed a number of strategies to threaten or entice the victim into making an immediate payment to a purported governmental entity. Oftentimes, the co-conspirator would pose as an Internal Revenue Service (IRS) agent and threaten to have the victim arrested unless the victim immediately made payment to satisfy an alleged tax debt. The victims were instructed to bring funds to a local Target store and purchase a gift card that could be used to satisfy the “debt,” and provide the card number and activation code to the co-conspirator over the phone. The co-conspirators would then send a message to ZHANG containing the gift card numbers and activation codes, so that ZHANG could use that information to redeem the gift cards at Target stores by purchasing pre-paid, third-party gift cards such as Google Play and Steam cards. To avoid detection, ZHANG would travel to multiple Target stores, including stores in other states, and use the self-checkout registers for his transactions. After purchasing the third-party cards, ZHANG would immediately convey the card numbers and activation codes to others who were involved in the scheme.
In his guilty plea, ZHANG admitted to redeeming more than $250,000 worth of Target gift cards by conducting hundreds of transactions at Target stores in Minnesota and Colorado.
If you believe you may have fallen victim to an IRS impersonation scam, you may file a report with the Target store or other retailer where the gift cards were purchased, the local police department, or TIGTA at https://www.treasury.gov/tigta/contact_report_scam.shtml
This case is the result of an investigation conducted by the Treasury Inspector General for Tax Administration (TIGTA).
Assistant U.S. Attorney Amber M. Brennan is prosecuting the case.
Defendant Information:
YU ZHANG, 27
Baldwin Park, Calif.
Convicted:
- Conspiracy to commit wire fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Buffalo Man Sentenced for Production of Child PornographyRead 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 Daniel Sasiadek, 64, of Buffalo, NY, who was convicted of production of child pornography, was sentenced to 20 years in prison and 20 years supervised release by U.S. District Judge Elizabeth Wolford.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that between July 2004 and October 2004, the defendant produced child pornography of a child who was approximately six years old.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Cheektowaga Police Department, under the direction of Chief David Zack.
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Brooklyn Center Man Sentenced to 210 Months in Prison for Methamphetamine, Cocaine DistributionRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of EDGAR MARTINEZ-SANCHEZ, 41, to 210 months in prison for his role in a methamphetamine and cocaine distribution conspiracy. MARTINEZ-SANCHEZ, who pleaded guilty on November 14, 2017, to one count of conspiracy to distribute methamphetamine and cocaine, was sentenced yesterday before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, from 2014 through February 2017, MARTINEZ-SANCHEZ along with other individuals including his co-defendants ROBERTO GALICIA-MACEDA and ELIEL GARCIA, conspired to distribute and transport methamphetamine and cocaine across the Twin Cities metropolitan area as part of the Martinez-Sanchez Drug Trafficking Organization. After a contested evidentiary proceeding on Tuesday, October 23, 2018, the Court found that MARTINEZ-SANCHEZ was the organization’s manager in Minnesota, who directed his co-defendants in their drug trafficking activities along with co-conspirators in Arizona and Mexico. For example, MARTINEZ-SANCHEZ negotiated three separate 1-pound methamphetamine transactions with a government informant and then directed GALICIA-MACEDA to deliver that methamphetamine, ultimately to an undercover law enforcement officer. After each transaction, law enforcement agents followed GALICIA-MACEDA as he traveled back to SANCHEZ to deliver the money he had received from the transaction. SANCHEZ also directed GARCIA in the organization’s day-to-day operations as a drug deliverer and money courier.
The investigation, which began in 2016, included the February 7, 2017, seizure of approximately $391,000 from GALICIA-MACEDA’s vehicle as he traveled southbound on Interstate 35 from the Twin Cities. During a February 14, 2017, arrest and warrant takedown operation, agents seized approximately $150,000, 11 pounds of methamphetamine, four kilograms of cocaine, as well as other evidence, during searches of the residences held by MARTINEZ-SANCHEZ, GALICIA-MACEDA, and GARCIA.
This case was the result of an investigation conducted by Homeland Security Investigations, the Drug Enforcement Administration, the Saint Paul Police Department, and the Minneapolis Police Department.
Assistant United States Attorney Allen A. Slaughter prosecuted this case.
Defendant Information:
EDGAR MARTINEZ-SANCHEZ, 41
Brooklyn Center, Minn.
Convicted:
- Conspiracy to distribute methamphetamine and cocaine, 1 count
Sentenced:
- 210 months in prison
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Birmingham Lawyer Sentenced to 5 Years in Prison for Bribing State LegislatorRead the Press Release
BIRMINGHAM – A Birmingham lawyer who was in a scheme to bribe a state legislator to use his office to oppose Environmental Protection Agency Actions in north Birmingham, received a federal prison sentence today of 5 years, announced U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp Jr. and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Thomas J. Holloman.
District Judge Abdul Kallon sentenced JOEL IVERSON GILBERT, 46, to 5 years in prison, $25,000 fine, and 2 years supervised release with 100 hours of community service each year, for bribing former Alabama Rep. Oliver Robinson with a $375,000 contract paid to him through his non-profit Oliver Robinson Foundation over the past two years.
Gilbert was convicted on July 23, 2018 of bribery, honest services wire fraud, conspiracy and money laundering conspiracy.
Robinson pleaded guilty in September 2017 to the conspiracy, bribery, wire fraud, and tax evasion.
“Gilbert was too clever by half and his concoction and execution of this illegal scheme was met today with just punishment”, Town said. “This case represents all manner of poisons in corrupt politics. It is my hope that these convictions and sentences will dissuade those who seek to gain unlawful advantages in the political process for their personal gain…and at the expense of too many. The victims in this case have gotten a voice through this process and that voice will ring in the ears of Mr. Gilbert for years to come.”
“Today, Mr. Gilbert answers for his path of corruption and will spend the next five years being held accountable for his actions”, Sharp said. “The FBI and our partners will continue to aggressively pursue those who would pursue corrupt practices.”
The FBI and IRS investigated the case, which Assistant U.S. Attorneys George Martin, Robin Beardsley Mark and John B. Ward prosecuted.
Attorney General Jeff Sessions Recognizes District EmployeeRead the Press Release
WASHINGTON – U.S. Attorney Benjamin C. Glassman announced an employee of the U.S. Attorney’s Office for the Southern District of Ohio was recognized today by Attorney General Jeff Sessions at the 66th Annual Attorney General’s Awards Ceremony.
Jessica H. Kim is the sole recipient of this year’s Attorney General’s Award for Outstanding Contributions by a New Employee.
Kim has served as an Assistant United States Attorney in Columbus for less than four years. In that time, she’s served as lead counsel in three major trial victories: United States v Harrison et al. – a complex investment fraud case involving the founders of the sports beverage OXYwater, who defrauded its investors out of more than $9 million; United States v Foster – a fraud case stemming from the OXYwater case in which a manager was convicted of defrauding celebrity clients and committing tax charges; and United States v Hoyo – a case in which the defendant had defrauded two vulnerable individuals of nearly half a million dollars in stocks and retirement funds. At trial, Kim established Hoyo’s scheme with evidence so overwhelming that after a week of trial at the close of the government’s case, Hoyo offered to plead guilty.
Kim has also indicted the first two cyberstalking cases in the District and is also co-counsel in the District’s racketeering case prosecuting 23 alleged members and associates of the transnational criminal organization MS-13.
“Jessica possesses an outstanding legal mind and is brilliant in the courtroom,” U.S. Attorney Glassman said. “She is exceptionally hard working, seemingly tireless, and relentlessly dedicated to the pursuit of justice. Through her service as an Assistant United States Attorney, Jessica is making a tremendous contribution to the people of the Southern District of Ohio – and the country.”
Kim was one of 244 department employees recognized for their distinguished public service. This annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people.
“Service in the Department of Justice is more than a normal job; it is a calling to the highest standards of professionalism,” Attorney General Jeff Sessions said. “That is true for all of the 115,000 Department of Justice employees. But it is especially true for these award winners. And so I want to thank them and their families for their exemplary service to this Department and to the American people. They have made this Department proud.”
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Attorney General Jeff Sessions Recognizes Department Employees and Others for their Service at 66th Annual Attorney General AwardsRead the Press Release
WASHINGTON – Attorney General Jeff Sessions recognized 244 department employees for their distinguished public service today at the 66th Annual Attorney General’s Awards Ceremony. Thirty-six other individuals outside of the department were also honored for their work. This annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people. This year’s award includes an award for exceptional heroism to U.S. Marshal Senior Inspector Basilio S. Perez, Jr., for his courageous actions to protect and aid victims of the October 1, 2017, mass shooting in Las Vegas, Nevada.
“Service in the Department of Justice is more than a normal job; it is a calling to the highest standards of professionalism,” Attorney General Jeff Sessions said. “That is true for all of the 115,000 Department of Justice employees. But it is especially true for these award winners. And so I want to thank them and their families for their exemplary service to this Department and to the American people. They have made this Department proud.”
“For more than 17 years Gretchen Courtney has worked tirelessly for justice for Tom Wales, the Wales family and all of us who knew and loved this talented and dedicated Assistant United States Attorney,” said U.S. Attorney Annette L. Hayes. “She has managed what is now the largest case file at the FBI, and provided support to the joint Federal and State team working to bring a killer to justice.”
This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
In making the award to Paralegal Specialist Gretchen Courtney, the Attorney General noted that she had spent a significant portion of her professional life supporting the investigation of the October 11, 2001 shooting death of Assistant United States Attorney Thomas Crane Wales. Mr. Wales was shot and killed at his home by an unknown assailant who stood outside a backyard window. If, as investigators believe, Wales was killed in connection with his work, he would be the first Assistant United States Attorney killed in the line of duty.
The award to Paralegal Specialist Gretchen Courtney notes her “unwavering commitment” to the investigation, and “invaluable contributions have included managing the collection, analysis, and maintenance of the largest case file in the Federal Bureau of Investigation… Her service is a tribute to the U.S. Department of Justice’s fierce determination to ensure those responsible for the murder are held accountable for the crime.”
Attorney General Jeff Sessions Recognizes Department Employees and Others for Their Service at the 66th Annual Attorney General AwardsRead the Press Release
SACRAMENTO, Calif. — Attorney General Jeff Sessions recognized 244 department employees for their distinguished public service today at the 66th Annual Attorney General’s Awards Ceremony. Thirty-six other individuals outside of the department were also honored for their work. This annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people. This year’s award includes an award for exceptional heroism to U.S. Marshal Senior Inspector Basilio S. Perez Jr. for his courageous actions to protect and aid victims of the October 1, 2017, mass shooting in Las Vegas, Nevada.
“Service in the Department of Justice is more than a normal job; it is a calling to the highest standards of professionalism,” Attorney General Jeff Sessions said. “That is true for all of the 115,000 Department of Justice employees. But it is especially true for these award winners. And so I want to thank them and their families for their exemplary service to this Department and to the American people. They have made this Department proud.”
U.S. Attorney McGregor W. Scott said: “It was an honor to be part of the ceremony recognizing the team that took down AlphaBay in 2017. This multi-agency team worked tirelessly to disrupt a marketplace that was selling dangerous and illegal goods. We are delighted that the U.S. Department of Justice is recognizing three of our attorneys for their outstanding contributions to the Department and its mission.”
This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
In addition to AlphaBay team members in Washington D.C. and around the world, the Attorney General recognized 10 team members from the Eastern District of California for their work on the AlphaBay case. The multi-agency takedown of AlphaBay, the world’s largest darknet marketplace, was a landmark victory in the Department’s fight against cybercrime. The meticulously planned international operation involved law enforcement partners in Asia, Europe, and North America. AlphaBay had over 200,000 active listings for illegal goods, including fentanyl and heroin, stolen identity documents, computer hacking tools, and illegal firearms. During the takedown, the team was able to seize record amounts of digital currencies, including Bitcoin, Monero, and Zcash, and permanently disable the infrastructure of the site while coordinating with its international partners to simultaneously shutdown Hansa, the second‑largest darknet marketplace. The team also tracked down and seized millions of dollars in assets held by the site’s administrator. The case serves as a model for complex international cybercrime investigations and demonstrates the value in inter-agency and international coordination.
After the takedown, online drug markets were in disarray with just a few disorganized markets struggling to reclaim AlphaBay’s business. The previously thriving Bitcoin exchanges became a fraction of what they once were. The operation was a massive success and a model for future dark-market operations.
The Attorney General presented awards to the following AlphaBay team members from the Eastern District of California: Assistant U.S. Attorneys Paul Hemesath, Grant Rabenn, and Kevin Khasigian; Sacramento FBI Special Agents Nicholas Phirippidis and Heriberto Cadena; Fresno DEA Special Agent John Rabaut; Fresno IRS Criminal Investigation Special Agent Kulbir Mand; Fresno DEA Special Agent Jay Dial; and two Sacramento FBI Computer Scientists.
Attorney General Jeff Sessions Hosts the 66th Annual Attorney General Awards Honoring Department Employees and Others for their ServiceRead the Press Release
WASHINGTON – Attorney General Jeff Sessions recognized 244 Department of Justice employees for their distinguished public service today at the 66th Annual Attorney General’s Awards Ceremony. Thirty-six other individuals, outside of the Department of Justice, were also honored for their work. This annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people. This year’s award includes an award for exceptional heroism to U.S. Marshal Senior Inspector Basilio S. Perez, Jr., for his courageous actions to protect and aid victims of the October 1, 2017, mass shooting in Las Vegas, Nevada.
“Service in the Department of Justice is more than a normal job; it is a calling to the highest standards of professionalism,” Attorney General Jeff Sessions said. “That is true for all of the 115,000 Department of Justice employees. But it is especially true for these award winners. And so I want to thank them and their families for their exemplary service to this Department and to the American people. They have made this Department proud.”
“The extraordinary team that handled the prosecution of a man who violated the Espionage Act and sexually exploited minors is most-deserving of the Department’s highest honors,” stated U.S. Attorney Ariana Fajardo Orshan. “These individuals, including five representatives of the U.S. Attorney’s Office for the Southern District of Florida, worked tirelessly to obtain justice for the defendant’s victims and protect our nation’s security. The domestic and international impact of their dedicated efforts epitomizes the Department’s public service mission.”
This year’s program honors individuals across the Department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
The awards ceremony included the Attorney General’s Award for Distinguished Service. This is the Department’s second highest award for employee performance. Fourteen Distinguished Service Awards were presented this year. Six employees of the U.S. Attorney’s Office for the Southern District of Florida were honored, along with other team members, with this award. The South Florida honorees are Assistant U.S. Attorney Ricardo A. Del Toro, Assistant U.S. Attorney Barbara A. Martinez, Assistant U.S. Attorney Vanessa S. Johannes, Supervisory Intelligence Research Specialist Angel L. Martinez, Intelligence Research Specialist Erik M. Tisthammer, and Paralegal Specialist Lilian Cruz.
This team received the award for its successful prosecution of Christopher Glenn who committed cyber-espionage, theft of classified materials, sex trafficking, and sexually assaulted minors. Glenn’s arrest in 2014 was the culmination of outstanding investigative work revealing that Glenn, a computer systems administrator for the U.S. Army at the Joint Task Force Bravo-Soto Cano Air Base in Honduras, had obtained unauthorized access to the base commander’s classified email system and disabled the system’s security restrictions. He copied highly-sensitive classified military plans and intelligence reports onto a disk that he removed from the base, and then downloaded the information onto an encrypted, Internet-accessible computer storage device at his Honduran residence. Furthermore, it was discovered that, for years, Glenn had been obtaining young girls between the ages of 12 and 16 from poor, remote villages in Honduras, taking them to his home, and sexually assaulting them, sometimes using date rape drugs.
Glenn was indicted in two separate cases. In 2015, he pled guilty in the counterintelligence case and was sentenced to the statutory maximum of 10 years in prison for the willful retention of classified national defense information under the Espionage Act and for computer intrusion under the Computer Fraud and Abuse Act. In March 2017, Glenn was convicted in the child exploitation case following a six-week jury trial. He was sentenced to life in prison on July 21, 2017. This child exploitation case is one of the first in the U.S. to rely on extraterritorial jurisdiction under the Trafficking Victims Protection Act for conduct that occurred entirely abroad.
The success of these two related cases was due to the collaborative teamwork of the award recipients and their law enforcement partners. Together, they brought Glenn to justice while protecting U.S. national security interests and preventing any further sexual abuse of children.
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Arizona Man Indicted for Impersonating an FBI Agent in Order to Defraud a Stanislaus County CoupleRead the Press Release
FRESNO, Calif. — A four-count indictment was unsealed Tuesday charging Ivan Isho, 41, of Phoenix, Arizona, with wire fraud, impersonation of a federal officer, and cyberstalking, U.S. Attorney McGregor W. Scott announced.
According to court documents, between September 2016 and April 2017, Isho claimed to be a special agent with the FBI to a couple living in Ceres. He claimed that as an FBI agent he could help the couple acquire visas for three family members living overseas. Although they paid him over $6,700 to facilitate the visa process, no visas have issued, and Isho has returned none of the money.
The indictment alleges that between April 2016 and April 2018, Isho harassed and intimidated another victim using the telephone, internet, and internet-based social media platforms in a manner likely to cause substantial emotional distress to this victim.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
If convicted, Isho faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Adidas Executive and Two Others Convicted of Defrauding Adidas-Sponsored Universities in Connection with Athletic ScholarshipsRead the Press Release
Robert S. Khuzami, the Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced the convictions of JAMES GATTO, a/k/a “Jim,” MERL CODE, and CHRISTIAN DAWKINS for conspiring to defraud universities by funneling illicit payments to the families of high-school and college basketball players and concealing those payments – which were prohibited by university policies and NCAA rules – from the schools. GATTO, the Director of Global Basketball Sports Marketing at Adidas, CODE, an Adidas consultant, and DAWKINS, an aspiring manager of professional athletes, will be sentenced on March 5, 2019, at 10:00 a.m. by Judge Kaplan, who presided over the four-week trial.
Two other scheme participants, MUNISH SOOD, a financial advisor, and THOMAS “T.J.” GASSNOLA, a former Adidas consultant, previously pled guilty in connection with their participation in the fraudulent scheme.
Mr. Khuzami said: “Today’s convictions expose an underground culture of illicit payments, deception and corruption in world of college basketball. These defendants now stand convicted of not simply flouting the rules but breaking the law for their own personal gain. As a jury has now found, the defendants not only deceived universities into issuing scholarships under false pretenses, they deprived the universities of their economic rights and tarnished an ideal which makes college sports a beloved tradition by so many fans all over the world.”
According to the allegations contained in the Complaint, Indictment, Superseding Indictment, and evidence presented during the trial in Manhattan federal court:
Overview of the Scheme
As found by the jury, GATTO, CODE, and DAWKINS brokered and facilitated the payments funded by Adidas to the families of high school and college aged basketball players in connection with decisions by those players to commit to Adidas-sponsored schools and a promise that the players also would retain the services of DAWKINS and sign lucrative endorsement deals with Adidas upon turning professional. The payments, which the defendants took great lengths to conceal from the victim-universities, served to defraud the relevant universities in several ways. First, because the illicit payments to the families of student-athletes rendered those student-athletes ineligible to participate in collegiate athletics, scheme participants conspired to conceal these payments from the universities, thereby causing them to provide or agree to provide athletic-based scholarships and financial aid under false and fraudulent pretenses. Indeed, the defendants and their co-conspirators, who included the families of the student-athletes and, in certain instances, one or more corrupt coaches at the universities, knew that, for the scheme to succeed and the athletic scholarships to be awarded, the illicit payments had to be concealed from the universities, and that certifications, falsely representing that the student-athletes were eligible to compete in Division I athletics, would be submitted to the universities.
Second, the scheme participants further defrauded the universities by depriving the universities of significant and necessary information regarding the non-compliance with NCAA rules by the relevant student-athletes and their families, and, in some cases, by certain corrupt coaches involved in the scheme. In doing so, the scheme participants interfered with the universities’ ability to control their assets and created a risk of tangible economic harm to the universities, including, among other things, decision-making about the distribution of their limited athletic scholarships; the possible disgorgement of certain profit-sharing by the NCAA; monetary fines; restrictions on athlete recruitment and the distribution of athletic scholarships; and the potential ineligibility of the universities’ basketball teams to compete in NCAA programs generally, and the ineligibility of certain student-athletes in particular.
Allegations Involving the University of Louisville
Beginning in approximately May 2017, GATTO, CODE, DAWKINS, and others worked together to illicitly funnel approximately $100,000 from Adidas to the father of Brian Bowen, then a top-rated high school basketball player, in connection with Bowen’s commitment to play at the University of Louisville, a school whose athletic programs are sponsored by Adidas. Because the payments to the family of Bowen were both in violation of NCAA rules and illegal, the defendants took steps to conceal them from the University, including funneling the money indirectly through an amateur team affiliated with CODE and a corporation controlled by DAWKINS. The payments were all funded by Adidas pursuant to phony invoices approved by GATTO, and the first installment was delivered to Bowen’s father in cash in July 2017 in a parking lot in New Jersey.
Allegations Involving the University of Kansas
Between 2016 and 2017, GATTO and GASSNOLA worked together to funnel approximately $90,000 from Adidas to the family of Billy Preston, then a high school basketball player, in connection with Preston’s commitment to play at the University of Kansas, a university whose athletic programs are sponsored by Adidas. To conceal the payments from the University, GATTO routed the money to Billy Preston’s family indirectly, through an Adidas-sponsored amateur team affiliated with GASSNOLA, and pursuant to sham invoices which GATTO approved.
In addition, in the summer of 2017, GATTO and GASSNOLA agreed to funnel money to the legal guardian of Silvio De Sousa, then a high school basketball player, in connection with De Sousa’s commitment to play at the University of Kansas. In one instance, GATTO and GASSNOLA were intercepted over a wiretap discussing a $20,000 payment to the legal guardian.
Allegations Involving the North Carolina State University
In approximately November 2015, GATTO and GASSNOLA agreed to funnel approximately $40,000 from Adidas to the family of Dennis Smith Jr., then a high school basketball player, in order to stop Smith Jr. from de-committing from North Carolina State University, a university whose athletic programs are sponsored by Adidas. GASSNOLA flew to North Carolina to personally deliver the money in cash to a basketball coach at North Carolina State University, who then routed the money to Smith Jr.’s family. After GASSNOLA made the payment, GATTO reimbursed GASSNOLA via his Adidas-sponsored amateur team.
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GATTO, 48, of Wilsonville, Oregon, CODE, 44, of Greer, South Carolina, and DAWKINS, 25, of Atlanta, Georgia, were each convicted of one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carry a maximum sentence of 20 years in prison. GATTO was also convicted of an additional count of wire fraud.
Mr. Khuzami thanked the FBI and the Special Agents of the U.S. Attorney’s Office of the Southern District of New York for their tireless efforts during the investigation and prosecution of this case.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Edward B. Diskant, Noah Solowiejczyk, Eli J. Mark, and Aline R. Flodr are in charge of the prosecution.
4 Members of International Burglary Crew Arrested and Charged in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging four defendants with participating in a criminal organization that committed a series of burglaries and engaged in the interstate transportation of stolen goods between 2006 and 2017. DAMIR PEJCINOVIC, a/k/a “Damian,” a/k/a “CoCo,” GZIMI BOJKOVIC, a/k/a Jimmy,” ADRIAN FISEKU, and ELVIS CIRIKOVIC, a/k/a “Gorilla,” were arrested this morning and will be presented today before Magistrate Judge Katharine H. Parker. The case is assigned to U.S. District Judge Victor Marrero.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged in the indictment, the defendants were part of a sophisticated criminal enterprise that carried out burglaries on both sides of the Atlantic, to the tune of more than $10 million. Thanks to the outstanding efforts of our partners at the FBI and the NYPD, the defendants now face significant federal charges.”
FBI Special Assistant Director-in-Charge William F. Sweeney Jr. said: “Today’s charges bring to an end an alleged criminal enterprise whose activity spanned more than a decade and included more than a dozen individual incidents that occurred across the United States and around the world. This investigation demonstrates the FBI/NYPD Joint Violent Crimes Task Force’s unwavering commitment to bringing justice to these groups, in spite of the challenges created by time or distance. I would like to thank all of our national and international partners for their contributions to this investigation. Our success in bringing this case to prosecution would not have been possible without them.”
According to the allegations in the Indictment unsealed today in Manhattan federal court[1]:
Between 2006 and April 2017, PEJCINOVIC, BOJKOVIC, FISEKU, and CIRIKOVIC participated in a criminal organization whose members and associates engaged in, among other things, the commission of burglaries and interstate transportation and sale of stolen goods. The criminal organization operated principally in New York City, California, New Jersey, Pennsylvania, Florida, Massachusetts, Maine, and Europe. Members and associates of the organization committed, conspired to commit, and attempted to commit numerous burglaries of jewelry stores and banks, as well as the interstate transportation and sale of stolen property from the burglaries. PEJCINOVIC, BOJKOVIC, FISEKU, CIRIKOVIC, and other members and associates of the criminal organization committed the following burglaries and attempted burglaries, among others:
- Between February 2006 and March 2006, PEJCINOVIC and two others participated in a burglary of a restaurant and an attempted burglary of a jewelry store in Portland, Oregon.
- On March 29, 2008, PEJCINOVIC, BOJKOVIC, CIRIKOVIC, and one other participated in a burglary of a jewelry store in Manhattan, which resulted in the theft of jewelry valued at more than $2.5 million.
- On October 11, 2008, PEJCINOVIC and CIRIKOVIC participated in an attempted burglary of a jewelry store in Germany, attempting to steal gold valued at more than €10 million.
- On July 26, 2009, PEJCINOVIC, BOJKOVIC, and two others participated in a burglary of a jewelry store in Manhattan, which resulted in the theft of jewelry valued at more than $850,000.
- On August 25, 2010, PEJCINOVIC and one other participated in an attempted burglary of a jewelry store in Manhattan.
- On August 28, 2010, PEJCINOVIC, BOJKOVIC, and two others participated in a burglary of a jewelry store in Beverly Hills, which resulted in the theft of jewelry valued at more than $70,000.
- On September 5, 2010, PEJCINOVIC and two others participated in a burglary of a jewelry store in Kansas City, Kansas, which resulted in the theft, interstate transportation, and sale of jewelry valued at more than $1 million.
- On February 19, 2011, PEJCINOVIC, CIRIKOVIC, FISEKU, and two others participated in a jewelry store in Los Angeles, which resulted in the theft, interstate transportation, and sale of jewelry valued at more than $3 million.
- In the summer of 2011, PEJCINOVIC and one other participated in an attempted burglary of a jewelry store in Brooklyn, New York.
- On September 16, 2011, PEJCINOVIC, CIRIKOVIC, and three others participated in a burglary of a jewelry store in Los Angeles, which resulted in the theft of jewelry valued at more than $150,000.
- In the fall of 2012, PEJCINOVIC, BOJKOVIC, and two others participated in an attempted burglary of a bank in Philadelphia.
- On June 30, 2012, PEJCINOVIC, CIRIKOVIC, and two others participated in an attempted burglary of a bank in Scarsdale, New York.
- On July 22, 2012, PEJCINOVIC and two others participated in an attempted burglary of a jewelry store in Manhattan.
- In the fall of 2013, PEJCINOVIC, BOJKOVIC, CIRIKOVIC, and one other participated in the burglary of a jewelry store in New Jersey.
- On December 31, 2016, PEJCINOVIC, BOJKOVIC, FISEKU, and one other participated in the burglary of a jewelry store in Manhattan, which resulted in the theft, interstate transportation, and sale of jewelry valued at more than $3 million.
- On March 20, 2017, PEJCINOVIC, BOJKOVIC, FISEKU, and one other participated in the burglary of a jewelry store in Los Angeles, which resulted in the theft of jewelry valued at more than $2 million.
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PEJCINOVIC, 44, of New York, New York, BOJKOVIC, 36, of Staten Island, New York, FISEKU, 35, of Staten Island, New York, and CIRIKOVIC, 35 of Woodhaven, New York, are each charged with one count of racketeering conspiracy, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to commit interstate transportation of stolen property and bank burglary, which carries a maximum sentence of five years in prison. In addition, PEJCINOVIC, BOJKOVIC, and FISEKU are charged with one count of interstate transportation of stolen property, which carries a maximum sentence of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Berman praised the investigative work of the FBI and the NYPD. Mr. Berman also thanked the Los Angeles Police Department, Beverly Hills Police Department, Kansas City Police Department, Portland Police Department, German authorities, Interpol, Europol, the U.S. Department of Justice’s Office of International Affairs, and the Manhattan District Attorney’s Office for their assistance in this investigation. He added that the investigation is continuing.
This case is being handled by the Office’s Violent & Organized Crime Unit. Assistant United States Attorneys Andrew K. Chan and Margaret Graham are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
22 Indicted in Operation Targeting Drug Trafficking Organization Tied to Cartel in Michoacan, MexicoRead the Press Release
PORTLAND, Ore.—Today, the United States Attorney’s Office for the District of Oregon unsealed a nine count indictment charging drug trafficking offenses against 22 members of a criminal organization responsible for trafficking large quantities of methamphetamine, heroin and cocaine in Oregon and Washington State.
Early this morning, FBI, Homeland Security Investigations (HSI – U.S. Department of Homeland Security), the Westside Interagency Narcotics (WIN) Task Force and the Clackamas County Interagency Task Force (CCITF) conducted a multi-agency law enforcement operation leading to the arrest of 17 defendants.
According to the unsealed indictment, a drug cartel based in Michoacan, Mexico distributed methamphetamine, heroin and cocaine to Victor Alvarez Farfan, 43, of Oregon City, Oregon. Farfan and his associates manufactured crystal methamphetamine from liquid form and distributed it to other members of the conspiracy for sale in Hillsboro, Gresham, Portland and Hood River, Oregon, and Tacoma, Washington. Farfan and his associates also distributed heroin and cocaine in the Portland-metro area. John Armas, 41, of Hillsboro, distributed methamphetamine he received from Farfan via a local distribution cell in the Hillsboro area.
“While our country suffers from the effects of pervasive substance abuse, Mexican drug trafficking cartels continue bringing deadly narcotics into our communities. Stopping these transnational organizations requires steadfast and responsive law enforcement partnerships at all levels of government,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Today, thanks to the vigilance and sustained cooperation of law enforcement agencies across Oregon, this cartel’s efforts to maintain their foothold in our communities has been dealt a lasting blow. We will continue pursuing criminal drug traffickers and ensure their actions are met with severe consequences.”
“Meth, heroin and cocaine combine to form a deadly cocktail that fuels a cycle of violence and addiction in our community,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “The FBI and our partners are targeting the power players in these drug trafficking organizations as we work to reduce the flow of guns, drugs and dirty money into Oregon.”
“I commend the collaborative efforts by all of those involved in this important operation,” said Brad Bench, Special Agent in Charge of HSI Seattle. “HSI is committed to dismantling these types of illicit drug trafficking organizations and bringing those involved to justice.”
“We are unrelenting in our work to stop illegal drug traffickers,” said Pat Garrett, Washington County Sheriff. “The teamwork displayed—local, federal and across state lines—makes me thankful for the strong partnerships we have in public safety.”
“This is another clear example of public safety working together to make a difference at every level—city, county, state and federal agencies,” said Craig Roberts, Clackamas County Sheriff. “I can attest that countless front line officers have been working around the clock to hold major drug traffickers accountable for their criminal activities. Our united message is: “don’t bring this to Oregon or we in law enforcement will soon be knocking on your door.”
The nine-count indictment unsealed today alleges members of the organization conspired to possess with the intent to distribute and distribute methamphetamine, heroin, and cocaine; use a communication facility, including cellular telephones, in the commission of a controlled substances felony; and maintain drug-involved premises to manufacture and distribute controlled substances. Other charges include the interstate distribution of drug proceeds and money laundering.
Named defendants include:
- Victor Alvarez Farfan is charged with conspiracy, two counts of possession with intent to distribute methamphetamine, and conspiracy to commit the laundering of monetary instruments.
- John Armas is charged with conspiracy, possession with intent to distribute methamphetamine, and conspiracy to commit the laundering of monetary instruments.
- Silverio Rubio Valdovinos, 35, of Gresham, is charged with conspiracy.
- Eduardo Alvarez Farfan, 24, of Gresham, is charged with conspiracy, possession with intent to distribute cocaine, and conspiracy to commit the laundering of monetary instruments.
- Roberto Carlos Farfan Alvarez, 23, of Oregon City, is charged with conspiracy and possession with intent to distribute methamphetamine.
- Genaro Fernandez Gonzalez, 26, of Salem, Oregon, is charged with conspiracy.
- Randy Eugene Roberts, 51, of Hillsboro, is charged with conspiracy.
- Kathleen Joan Roberts, 53, of Hillsboro, is charged with conspiracy.
- Socorro Elena Gutierrez, 38, of Hillsboro, is charged with conspiracy.
- Taylor Michael McKemie, 55, of Hillsboro, is charged with conspiracy and conspiracy to commit the laundering of monetary instruments.
- Keith Frederick Teufel, 59, of Hillsboro, is charged with conspiracy and possession with intent to distribute methamphetamine.
- Randall Deal Mauel, 47, of Chehalis, Washington, is charged with conspiracy.
- Rene Diaz Gutierrez, 36, of Vancouver, Washington, is charged with conspiracy and possession with intent to distribute methamphetamine.
- Catherine Arlene Cunningham, 51, of Hood River, is charged with conspiracy.
- Kirstie Alexandria Mirelez, 27, of Portland, is charged with conspiracy.
- Jessica Marie Stinnett, 39, of Astoria, Oregon, is charged with conspiracy and possession with intent to distribute methamphetamine.
- Athena Marie Johnson, 48, of Hillsboro, is charged with conspiracy.
15 of the 22 defendants were arraigned in federal court today. The identities of the five remaining defendants remain under seal. All defendants are expected to make their first appearances within one week.
This case is the result of a joint investigation by FBI, HSI, WIN, and CCITF. WIN includes representatives from the Washington County Sheriff's Office, the Beaverton Police Department, the Hillsboro Police Department, the Tigard Police Department, the Oregon National Guard Counterdrug Program, and the FBI. CCITF includes representatives from the Clackamas County Sheriff's Office, Clackamas County Community Corrections, Oregon City Police Department, Canby Police Department, the FBI and DHS/Homeland Security Investigations (HSI). Other agencies assisting with today's takedown include: Oregon State Police, the Multnomah County Sheriff's Office, the Marion County Sheriff’s Office, the Clatsop County Sheriff's Office, the Hood River County Sheriff's Office, the Gresham Police Department, the Salem Police Department, the Port of Portland Police Department, the Portland Police Bureau and the U.S. Drug Enforcement Administration.
This case was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the department’s strategy for reducing the availability of drugs in the U.S. OCDETF was established in 1982 to mount a comprehensive attack on drug trafficking by disrupting and dismantling major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in coordination with state and local law enforcement.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
***media Advisory*** -- U.s. Attorney Mike Stuart to Honor Excellence in Law Enforcement and Victim SupportRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart will honor more than 60 law enforcement officers, victim advocates, and community leaders during the 2018 U.S. Attorney’s Law Enforcement and Victim Assistance Awards Ceremony on Thursday, October 25, 2018, at 12:30pm at the Robert C. Byrd United States Courthouse in Charleston.
During the ceremony, Stuart will present awards for outstanding law enforcement work on major cases involving drug crime, white collar crime and child exploitation. Other awards include Law Enforcement Agency of the Year, Drug and Violent Crime Task Force of the Year, Crime Victim Service Award, Allied Professional Award, Federal Service Awards, Volunteer for Victims Award, and the Special Courage Award.
The annual awards ceremony, hosted by the U.S. Attorney’s Office for the Southern District of West Virginia, recognizes exemplary service of federal, state, and local law enforcement officers, as well as victim advocates, criminal justice professionals, and others who have made significant contributions on behalf of the criminal justice system.
WHO: United States Attorney Mike Stuart, joined by representatives from the law enforcement community, crime victim advocates, and others
WHAT: 2018 U.S. Attorney’s Law Enforcement and Victim Assistance Awards Ceremony
WHEN: Thursday, October 25, 2018, at 12:30pm
WHERE: Robert C. Byrd United States Courthouse – Fifth Floor
300 Virginia Street, East
Charleston, WV 25301*Please be advised that cameras and other recording devices will be permitted on the fifth floor of the Courthouse for the ceremony only.
Follow us on Twitter: SDWVNews
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23 October 2018
Wichita Woman Sentenced for Stealing Guns to Pay Drug DebtRead the Press Release
WICHITA, KAN. - A Wichita woman was sentenced Monday to 110 months in federal prison for prying open a display case and stealing guns from a local store, U.S. Attorney Stephen McAllister said.
Chaelyn Nichole Aaron, 28, Wichita, Kan., pleaded guilty of one count of theft of firearms. In her plea, she admitted the crime occurred March 28, 2018, at an Atwoods store at 6235 N. Broadway. Aaron went into the store and used a small red crowbar to pry open a display case. She took seven handguns from the case and left the store. According to documents filed in court, she gave the guns to a drug dealer to pay off her debt.
McAllister commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Matt Treaster for their work on the case. This case was prosecuted under the Department of Justice’s Project Safe Neighborhoods initiative.
Wetzel County woman sentenced for connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – Holly C. Jenkins, of New Martinsville, West Virginia, was sentenced today to 24 months incarceration for her role in methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.
Jenkins, age 55, pled guilty to one count of “Possession with Intent to Distribute Heroin” in August 2018. Jenkins admitted to distributing heroin in March 2018 in Wetzel County.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Wavy Boyz Gang Member Sentenced to Nearly 4 Years in Federal Prison for Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to three years and 10 months in prison followed by six years supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Robert Fields, Jr. aka Squid, 24, of Pittsburgh, Pennsylvania.
According to information presented to the court, from in and around November 2015, and continuing thereafter to in and around January 2016, Fields conspired with others to distribute and possess with intent to distribute 100 grams of heroin. The court was informed that Fields was a member of the Wavy Boyz gang, which operates out of the Hill District Section of the City of Pittsburgh.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
United States Attorney Brady commended the federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) for the investigation leading to the successful prosecution of Robert Fields, Jr. The OCDETF task force is headed by the Federal Bureau of Investigation and is comprised of members drawn from the FBI Greater Pittsburgh Safe Street Task Force including the Pittsburg Bureau of Police, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, and the Allegheny County Police Department. Substantial assistance was provided by FBI San Juan, Puerto Rico (St. Thomas Resident Agency, U.S. Virgin Islands) and the United States Postal Inspection Service. Numerous other FBI field offices, including Detroit, Cleveland, New York, and Atlanta, in addition to the Bureau of Alcohol, Tobacco, and Firearms, also assisted with this investigation. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Waterbury Man Sentenced for ArsonRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Timothy Durkin, 43, was sentenced yesterday in United States District Court in Rutland, Vermont, to serve five years in prison after his guilty plea to maliciously destroying by means of fire real property used in interstate commerce. Chief U.S. District Judge Geoffrey W. Crawford also ordered Durkin to serve a three year term of supervised release upon his release from prison.
According to court records and proceedings, in the early morning hours of October 27, 2017, Durkin set fire to a building located at 3579 Waterbury-Stowe Road in Waterbury, Vermont. The fire destroyed the entire building. In December 2017, after he was arrested on unrelated charges in Washington County Superior Court, Durkin admitted to the arson.
Assistant U.S. Attorney Jonathan A. Ophardt handled the prosecution. Durkin was represented by Assistant Federal Public Defender David L. McColgin. U.S. Attorney Christina E. Nolan commended the efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Vermont State Police in the investigation and prosecution of Durkin.
These enforcement actions and partnerships are 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. Learn more about Project Safe Neighborhoods.
Vermont Man Sentenced for Distribution and Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Hilary Denault-Reynolds, 53, formerly of St. Albans, Vermont, was sentenced on October 22, 2018, in United States District Court in Rutland, Vermont, to serve seven years in prison after his guilty plea to one count each of distribution of child pornography and possession of child pornography. Chief U.S. District Judge Geoffrey W. Crawford also ordered Denault-Reynolds to serve a fifteen year term of supervised release upon his release from prison.
According to court records and proceedings, in spring of 2016, internet service providers Yahoo and Chatstep transmitted “Cybertips” to the National Center for Missing and Exploited Children (NCMEC) that a user, later identified as Denault-Reynolds, had transmitted images of child pornography over their online platforms. NCMEC forwarded the tips to the Vermont Internet Crimes Against Children Task Force (the ICAC). The ICAC investigated the tips and obtained warrants to search Denault-Reynolds’ Yahoo account and ultimately his residence in St. Albans, Vermont. On November 17, 2016, law enforcement executed the residential search warrant and seized multiple computers and electronic storage devices from Denault-Reynolds. Forensic examination of the computers and devices revealed that they contained thousands of images and videos of child pornography, and that Denault-Reynolds distributed child pornography to others using Yahoo Messenger. Subsequent investigation revealed that Denault-Reynolds had also bragged online about his sexual abuse of children earlier in his life, and that he had spent years “grooming” a child who lived near him.
The government was represented by Assistant U.S. Attorney Nicole P. Cate. Denault-Reynolds was represented by Assistant Federal Public Defender David L. McColgin.
United States Attorney Christina E. Nolan commended the efforts of the Vermont Internet Crimes Against Children Task Force and Homeland Security Investigations in the investigation and prosecution of Denault-Reynolds.
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney’s 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 www.projectsafechildhood.gov.
Verdict: Wichita Doctor Guilty of Diverting Rx Drugs to the StreetsRead the Press Release
WICHITA, KAN. - A federal jury today convicted a Wichita doctor of unlawfully distributing prescription drugs, U.S. Attorney Stephen McAllister said.
Dr. Steven R. Henson, 57, Wichita, Kan., who operated Kansas Men’s Clinic at 3636 N. Ridge Road in Wichita, was convicted on the following counts:
- Conspiracy to distribute prescription drugs outside the course of medical practice (Counts 1 and 2).
- Unlawfully distributing oxycodone (Counts 3 through 15).
- Unlawfully distributing oxycodone, methadone and alprazolam (Count 16).
- Unlawfully distributing methadone and alprazolam, the use of which resulted in the death of a victim on July 24, 2015, identified in court records as N.M. (Count 17)
Presenting false patient records to investigators (Count 19). - Obstruction of justice (Count 20)
- Money laundering (Counts 26 through 31).
Henson was registered with the Drug Enforcement Administration to dispense prescription controlled substances. His registered addresses included the Wichita Men’s Clinic and a location at 1861 N. Rock Road, Suite 201.
During trial, prosecutors presented evidence that Henson:
- Wrote prescriptions in return for cash.
- Post-dated prescriptions.
- Wrote prescriptions without a medical need.
- Wrote prescriptions without a legitimate medical exam.
- Wrote prescriptions for people other than the ones who came to see him.
Sentencing will be set for a later date. He faces the following penalties:
Counts 1-16: A maximum penalty of 20 years and a fine up to $1 million on each count.
Count 17: Not less than 20 years and not more than life and a fine up to $1 million.
Count 19: A maximum penalty of five years and a fine up to $250,000.
Count 20: A maximum penalty of one year and a fine up to $100,000.
Counts 26-31: A maximum penalty of 20 years and a fine up to $500,000 on each count.
McAllister commended the Drug Enforcement Administration’s Tactical Diversion Squad, the Newton Police Department, the Wichita Police Department, the Internal Revenue Service-Criminal Investigation Division investigated, Assistant U.S. Attorney Mona Furst and Special Assistant U.S. Attorney Kimberly Rodebaugh for their work on the case.
Vascular Access Centers to Pay at Least $3.825 Million to Resolve False Claims Act AllegationsRead the Press Release
WASHINGTON – Philadelphia-based Vascular Access Centers L.P., along with its 23 subsidiary and related corporations (collectively “VAC”), has agreed to pay at least $3.825 million to resolve claims that it violated the False Claims Act by billing Medicare for non-reimbursable vascular access procedures performed on End Stage Renal Disease (ESRD) beneficiaries and engaging in an alleged kickback scheme related to referrals for such procedures, the Department of Justice announced today.
The settlement resolves allegations that VAC, which currently operates facilities in eight states, billed Medicare for vascular access surgical procedures performed on ESRD beneficiaries, including fistulagrams and percutaneous transluminal angioplasties, without all of the required medical documentation supporting the necessity of the procedures. The settlement also resolves allegations that VAC submitted false claims to Medicare for services that resulted from referrals that VAC had induced through improper remuneration to physician investors and medical directors, in violation of the Anti-Kickback Statute. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
VAC has agreed to pay a minimum of $3.825 million in a series of fixed payments over five years, and could pay up to a maximum of $18,360,794, if certain contingencies are triggered.
“Medicare patients with End Stage Renal Disease, like other beneficiaries, are entitled to receive care in accordance with their clinical needs and not based on the financial interests of healthcare providers,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “Entities and individuals that attempt to profit through improper financial incentives and thereby bypass independent clinical decision-making will be held accountable.”
“Medicare fraud hurts not only patients and honest practitioners, but all taxpayers who pay hard-earned dollars into the nation’s public fisc,” said United States Attorney for the Eastern District of Louisiana Peter G. Strasser. “The favorable resolution of this False Claims Act matter illustrates our firm commitment to use all available remedies, both civil and criminal, to attack healthcare fraud at its source.”
VAC has also entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG), requiring the company to engage in significant compliance efforts over the next five years, including a focus on VAC’s arrangements with physicians and other health care providers for compliance with the Anti-Kickback Statute.
“Our Corporate Integrity Agreement provides future protection for patients and federal health care programs through controls and monitoring designed to ensure that VAC only provides medically necessary services to patients,” said Gregory E. Demske, Chief Counsel to the Inspector General for the United States Department of Health and Human Services. “Our CIA will also help try to ensure that doctors who are referring patients for medical procedures are doing so based on the best interest of the patient, and not based on financial considerations.”
The settlement resolves allegations originally brought in two lawsuits filed by whistleblowers under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The whistleblowers will collectively receive at least $612,000 as their share of the settlement.
The United States’ investigation in one case was handled by the U.S. Attorney’s Office for the Southern District of New York, and in the second case was a coordinated effort by the Civil Division of the Department of Justice and the U.S. Attorney’s Office for the Eastern District of Louisiana. The Department of Health and Human Services Office of Inspector General assisted in both investigations.
The cases are captioned United States ex rel. Levine v. Vascular Access Centers, L.P., et al., Case No. 12-civ-5103 (S.D.N.Y.), and United States ex rel. Boogaerts, et al. v. Vascular Access Centers, L.P., et al., Case No. 2:17-cv-02786-EEF-KWR (E.D. La.).
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Vascular Access Centers to Pay at Least $3.825 Million to Resolve False Claims Act AllegationsRead the Press Release
Philadelphia-based Vascular Access Centers L.P., along with its 23 subsidiary and related corporations (collectively “VAC”), has agreed to pay at least $3.825 million to resolve claims that it violated the False Claims Act by billing Medicare for non-reimbursable vascular access procedures performed on End Stage Renal Disease (ESRD) beneficiaries and engaging in an alleged kickback scheme related to referrals for such procedures, the Department of Justice announced today.
The settlement resolves allegations that VAC, which currently operates facilities in eight states, billed Medicare for vascular access surgical procedures performed on ESRD beneficiaries, including fistulagrams and percutaneous transluminal angioplasties, without all of the required medical documentation supporting the necessity of the procedures. The settlement also resolves allegations that VAC submitted false claims to Medicare for services that resulted from referrals that VAC had induced through improper remuneration to physician investors and medical directors, in violation of the Anti-Kickback Statute. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
VAC has agreed to pay a minimum of $3.825 million in a series of fixed payments over five years, and could pay up to a maximum of $18,360,794, if certain contingencies are triggered.
“Medicare patients with End Stage Renal Disease, like other beneficiaries, are entitled to receive care in accordance with their clinical needs and not based on the financial interests of healthcare providers,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “Entities and individuals that attempt to profit through improper financial incentives and thereby bypass independent clinical decision-making will be held accountable.”
“Medicare fraud hurts not only patients and honest practitioners, but all taxpayers who pay hard-earned dollars into the nation’s public fisc,” said United States Attorney for the Eastern District of Louisiana Peter G. Strasser. “The favorable resolution of this False Claims Act matter illustrates our firm commitment to use all available remedies, both civil and criminal, to attack healthcare fraud at its source.”
VAC has also entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG), requiring the company to engage in significant compliance efforts over the next five years, including a focus on VAC’s arrangements with physicians and other health care providers for compliance with the Anti-Kickback Statute.
“Our Corporate Integrity Agreement provides future protection for patients and federal health care programs through controls and monitoring designed to ensure that VAC only provides medically necessary services to patients,” said Gregory E. Demske, Chief Counsel to the Inspector General for the United States Department of Health and Human Services. “Our CIA will also help try to ensure that doctors who are referring patients for medical procedures are doing so based on the best interest of the patient, and not based on financial considerations.”
The settlement resolves allegations originally brought in two lawsuits filed by whistleblowers under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The whistleblowers will collectively receive at least $612,000 as their share of the settlement.
The United States’ investigation in one case was handled by the U.S. Attorney’s Office for the Southern District of New York, and in the second case was a coordinated effort by the Civil Division of the Department of Justice and the U.S. Attorney’s Office for the Eastern District of Louisiana. The Department of Health and Human Services Office of Inspector General assisted in both investigations.
The cases are captioned United States ex rel. Levine v. Vascular Access Centers, L.P., et al., Case No. 12-civ-5103 (S.D.N.Y.), and United States ex rel. Boogaerts, et al. v. Vascular Access Centers, L.P., et al., Case No. 2:17-cv-02786-EEF-KWR (E.D. La.).
U.S. Attorney Shappert Announce that Two Virgin Islands Assistant United States Attorneys are Receiving National Awards for Their Outstanding Work in the Prosecution of Transnational Drug OrganizationsRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that two federal prosecutors in the Virgin Islands U.S. Attorney’s Office (VI-USAO) will be honored on October 26, 2018 at a national awards ceremony in Miami, sponsored by the Organized Crime Drug Enforcement Task Force (OCDETF) program of the Department of Justice. The Organized Crime Drug Enforcement Task Forces (OCDETF) Program was established in 1982 to coordinate a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General's drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money-laundering networks, and related criminal enterprises. OCDETF combines the resources and expertise of federal law enforcement agencies in a coordinated attack against major drug trafficking and transnational criminal organizations. The OCDETF program includes the 94 U.S. Attorneys’ Offices (USAOs), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS), the U.S. Coast Guard (USCG), the U.S. Immigration and Customs Enforcement (USCIS), the U.S. Marshals Service (USMS), the Criminal and Tax Divisions of the U.S. Department of Justice, and numerous State and local agencies.
Assistant United States Attorney Delia Smith, the VI-USAO Lead OCDETF Attorney, will receive a national award for her leadership and prosecution of a large cocaine conspiracy known as Smuggler Smash. This investigation lead to 22 convictions, including four airline employees and the forfeiture of over $ 2 million dollars. Among the defendants convicted in this operation were former Department of Planning and Natural Resources (DPNR) Officer Gerald Mercer and former government security officer Neal Chesterfield. Federal prison sentences imposed by the court ranged from 16 years to 30 months.
Also receiving an OCDETF National Award for Individual Achievement is First Assistant United States Attorney Carlos R. Cardona, the former Lead OCDETF Attorney in the Puerto Rico USAO. FAUSA Cardona’s award recognizes his exceptional contributions to the OCDETF program during his service in Puerto Rico. He is credited with successfully managing the OCDETF program, while maintaining a significant caseload, mentoring new OCDETF prosecutors and simultaneously serving as the Puerto Rico Lead Strike Force Attorney.
"The U.S. Attorney’s Office is fortunate to have two, nationally-recognized narcotics prosecutors, who are committed to dismantling transnational criminal networks and drug cartels," said U.S. Attorney Shappert. "We are deeply grateful for their enormous contributions to our efforts to interdict drug-dealing criminals and to provide for enhanced public safety in the Territory."
U.S. Attorney Rosa Emilia Rodríguez Vélez Announces Progress in Making Our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
SAN JUAN, P.R. – One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Throughout the past year, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
“Project Safe Neighborhoods is a critical component of our crime reduction strategy; it enables the United States Attorney’s Office, together with our law enforcement partners, to target and prioritize criminal prosecutions of the most violent offenders in the most violent locations,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico. “Using the additional resources we have received from the Justice Department, we will strengthen our mission to increase safety and reduce violent crime in neighborhoods across our communities.”
As we celebrate the one-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:
Enforcement Actions
The U.S. Attorney’s Office has joined efforts with our fellow federal, state, and local law enforcement agencies to take the lead in reducing gun violence, and specifically, murders. We have numerous initiatives in place to combat drug trafficking and violent crime on the island. The Illegal Firearms Initiative started in 2011, in response to a historical increase in the murder rate. Since then, we have indicted more than 2,570 violent offenders. In 2018, we have arrested 270 individuals under this initiative.
In 2016, after four consecutive years during which the murder rate decreased, Puerto Rico experienced a slight uptick in the murder rate. Therefore, we sensed a need to intensify violence reduction efforts, and to implement innovative strategies. The Trigger Puller Initiative is aimed at identifying, investigating, and prosecuting the most dangerous members of drug trafficking organizations under investigation by the Strike Forces. In 2018, we have arrested 97 individuals under this initiative.
Other initiatives that are part of the PSN efforts in the District of Puerto Rico include: Gang Intelligence Center; RICO Initiative; Carjacking Initiative; and Drug Strike Forces. These initiatives target violent crime, organized crime and drug trafficking.
Community Partnerships
Since late 2015, USAO-PR’s Prevention and Reentry Team implements the Communities and Juveniles Program that includes prevention seminars and workshops for public middle school students and members of communities in areas impacted by high violent crime rates. The speakers at the workshops are usually special agents or police officers from agencies like the DEA, ICE, United States Probation Office, and the PRPD. The subjects and speakers are selected after interviewing the school’s administration and assessing the school’s needs. This year we have visited five schools and a residential reentry center, and five more schools will be visited by the end of this year. These outreach activities will continue to be coordinated throughout the year.
Improvements to Community Safety
- The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.
- The preliminary information we have for 2018 gives us reason for optimism that our efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago.
- In our district, we have had a steady decrease in the murder rate. As of the month of October, an average of 45 less murders have occurred in comparison to last year.
These enforcement actions and partnerships are 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. Learn more about Project Safe Neighborhoods.
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