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Thursday 13 September 2018
Navajo Man from Mexican Springs, N.M., Pleads Guilty to Federal Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Daniel Jimmy Morgan, 29, an enrolled member of the Navajo Nation who resides in Mexican Springs, N.M., pled guilty today in federal court in Albuquerque, N.M., to a voluntary manslaughter charge.
The FBI arrested Morgan on Aug. 3, 2016, on a criminal complaint charging him with killing a Navajo man on the Navajo Indian Reservation in McKinley County, N.M., on July 29, 2016. According to the criminal complaint, Morgan killed the victim by kicking the victim in the head and hitting him in the back and knees with a sledgehammer.
Morgan was indicted on Aug. 23, 2016, and was charged with second-degree murder. According to the indictment, Morgan committed the offense on July 29, 2016, in McKinley County.
During today’s proceedings, Morgan pled guilty to a felony information charging him with voluntary manslaughter. In entering the guilty plea, Morgan admitted that on July 29, 2016, he killed the victim by striking the victim in the head and chest with the intent to cause serious bodily injury.
The Navajo Nation Division of Public Safety arrested Morgan on tribal charges on July 30, 2016. Morgan was transferred into federal custody when he was arrested by the FBI on Aug. 3, 2016. Morgan has been in federal custody since that time and will remain detained until his sentencing hearing, which has yet to be scheduled. At sentencing, Morgan faces a maximum penalty of 15 years in federal prison.
The case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Sarah Mease.
Nashville Man Sentenced to 30 Years in Federal Prison for Hobbs Act RobberyRead the Press Release
NASHVILLE, Tenn. – September 13, 2018 – Dominique Cordell Wallace, aka Deuce Face, 24, of Nashville, Tennessee, was sentenced yesterday to 30 years in federal prison, for Hobbs Act robbery and firearms violations, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. There is no parole in the federal criminal justice system.
“I am grateful that the victim survived this horrific, violent crime and was able to be heard at the sentencing hearing,” said U.S. Attorney Cochran. “I commend our law enforcement partners for their investigative expertise and our prosecutors for structuring an outcome that will ensure Dominique Wallace has many, many years to ponder the consequences of his actions. We will continue to deal with violent criminals swiftly and with the certainty that they will be held accountable.”
According to court records, on June 3, 2015, Wallace, Demontay Thomas, Robert Brooks, and Michael Bright, all of Nashville, planned and agreed to rob the Express Market located on Antioch Pike in Nashville. Bright served as the driver, while Wallace, Thomas and Brooks entered the store as it was closing, armed with handguns. During the robbery, Wallace grabbed the store clerk by the neck with one hand while waiving a pistol in his other hand and forced the clerk toward the cash register. Thomas crawled under the counter to the register area, while Brooks went over the counter and fired his pistol. The bullet struck and killed Demontay Thomas. Wallace then shot the store clerk in the head and fled the scene with Brooks, leaving Thomas dead at the store and the clerk severely wounded.
The store clerk was later transported to a local hospital where he underwent life-saving surgeries. He testified at the sentencing hearing that he sustained permanent, severe injuries; will have to undergo additional surgeries and will eventually lose his eyesight.
Less than one month before this incident, Wallace had been placed on probation for 10 years, following a guilty plea in Davidson County, Tennessee, to attempted second-degree murder, as a result of an incident in which he and another person shot an individual multiple times while attempting to rob him at the Cumberland View public housing development in Nashville.
At sentencing, United States District Judge Aleta Trauger remarked that this was a “horrendous” crime which ruined the victim’s life, and that this was one of the worst violent crime cases she had seen.
Michael Bright previously pleaded guilty and was sentenced to 276 months in prison. Robert Brooks also pleaded guilty and will be sentenced on November 1, 2018.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department. The case was prosecuted by Assistant United States Attorneys Philip H. Wehby and Sunny A.M. Koshy.
Montgomery County Man Convicted by Federal Jury of Producing Child PornographyRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Kyle Stephen Thompson, age 33, of Burtonsville, Maryland, on 18 counts of production of child pornography. The jury deliberated less than 30 minutes before reaching its guilty verdict.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to the evidence presented at his three day trial, from May 9, 2015, to January 28, 2017, Thompson engaged in sexually explicit conduct with three minor females, in order to produce visual depictions documenting the abuse. Witnesses testified that on March 17, 2017, law enforcement executed a search warrant at Thompson’s residence and recovered a Secure Digital (SD) memory card hidden in the laundry room. During a preliminary on-scene forensic preview of the SD card, law enforcement saw a video depicting child pornography. According to trial testimony, subsequent forensic analysis of the SD card revealed 18 videos of Thompson sexually abusing three young girls, each of whom were between two and four years of age at the time of the abuse.
Thompson faces a mandatory minimum of 15 years in prison and up to 30 years in prison for each of the 18 counts of production of child pornography. U.S. District Judge Theodore D. Chuang has scheduled Thompson’s sentencing for January 28, 2019, at 2:30 p.m. in U.S. District Court in Greenbelt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, Montgomery County Police Department, and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Kristi N. O’Malley, Kelly O. Hayes, and Joseph Baldwin, who are prosecuting the federal case.
Mexican national indicted for having nearly half a kilo of deadly opioidsRead the Press Release
A Mexican national was indicted for having nearly half a kilogram of deadly opioids.
Jesus Usbaldo Ballardo Garcia, 22, was indicted on one count each of possession with the intent to distribute heroin, possession with the intent to distribute fentanyl, and possession of 4-ANPP knowing and having reasonable cause to believe it would be used to manufacture fentanyl.
Garcia on Aug. 1 possessed approximately 571 grams of heroin, 224 grams of fentanyl and 187 grams of 4-ANPP, an immediate precursor to fentanyl, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation. Assistant U.S. Attorneys Alissa M. Sterling and Tracey Ballard Tangeman are handling the case.
An indictment is only a charge and is not evidence of guilt. Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mexican National Sentenced with Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that MADRIGAL-SANCHEZ age 20, a citizen of Mexico, was sentenced after previously pleading guilty to a one-count Bill of Information for illegally re-entering the United States in violation of Title 8, United States Code, Section 1326(a).
According to the Bill of Information, MADRIGAL-SANCHEZ was found in the United States on or about March 8, 2018, after having been previously removed there from on or about December 8, 2015.
MADRIGAL-SANCHEZ was sentenced to time served, 1 year supervised release after imprisonment, and a $100.00 special assessment.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Mexican National Sentenced for Using Fraudulent Document and Lying to A Border OfficerRead 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 Juan Luis Jimenez Cortez, a/k/a Fernando Castillo, 45, a native of Mexico living in Chicago, Illinois, who was convicted of use of an entry document obtained by fraud and making false statements to a Federal official, was sentenced to serve four months in prison and three years supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Stephanie O. Lamarque and Elizabeth R. Moellering, who handled the case, stated that on August 13, 2017, a Customs and Border Protection Officer at the Lewiston Queenston Bridge encountered the defendant. Cortez presented an Illinois Drivers’ License and Social Security card listing the name Fernando Castillo and claimed to be a Puerto Rican born United States citizen. However, the defendant is a Mexican citizen with no legal status in the United States, and purchased the fraudulent Social Security card.
The sentencing is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
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Man Sentenced to Prison for Fort Lee AssaultRead the Press Release
RICHMOND, Va. – A Fort Lee man was sentenced today to one year in prison for physically assaulting a woman on Fort Lee in April.
According to court documents, Daniel L. Jefferson, Jr., 32, was convicted of assault by striking, beating, or wounding. On April 27, following an argument that escalated between Jefferson and the victim, Jefferson pushed the victim against the car, grabbed her by her jawbone under her chin, and threatened to kill her. This is Jefferson’s second conviction for assaulting the same dating partner. The first conviction came in November 2016, when Jefferson was sentenced to two months in prison following an assault where he struck her in the right eye with his fist, choked her with a shower curtain, and pushed her to the floor.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lieutenant Colonel William Ward, Fort Lee Provost Marshal, made the announcement after sentencing by U.S. Magistrate Judge David J. Novak. Assistant U.S. Attorney Gabrielle Michalak prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-64.
Man Convicted at Trial of ATM Skimming SchemeRead the Press Release
United States Attorney Matthew D. Krueger has announced that on September 11, 2018, a jury in the Eastern District of Wisconsin convicted Ionel Muresanu, 18, of multiple offenses involving the possession and use of counterfeit debit cards. Muresanu was convicted of Possession of 15 or More Counterfeit Access Devices, in violation of 18 U.S.C. Section 1029 (a)(3), and three counts of Aggravated Identity Theft, in violation 18 U.S.C. Section 1028A (1). He faces a possible sentence of up to ten years in prison and a fine of up to $250,000 for the possession count and an additional two years in prison for each of the identity theft counts.
According to the trial testimony, Muresanu, along with a juvenile companion, was involved in an ATM skimming scheme, wherein they placed “skimmers” and pinhole cameras at ATM machines to capture account and personal identification numbers of unknowing customers. The information was transferred to the magnetic stripes of generic gift cards, which the two then used to steal money from the customer accounts.
Muresanu was arrested on May 16, 2018, in Oshkosh, Wisconsin by detectives from the Oshkosh Police Department. They investigated based on a tip from Tennessee law enforcement. At the time of his arrest, Muresanu was in possession of 80 counterfeit cards. An additional 14 cards were recovered from the juvenile and six more cards were recovered at an Oshkosh store where the two were observed using the cards at an ATM.
In statements to the police that were presented at trial, Muresanu admitted that he had placed skimming devices and pinhole cameras on ATM machines in Nashville, Tennessee, Atlanta, Georgia, and Kansas City, Missouri. After the devices had captured account holder data, he removed them and gave them to another individual who loaded the customer information onto the magnetic stripes of the generic gift cards. Muresanu and others then used the cards to steal money from unknowing customer accounts in various states. Muresanu said that with one batch of cards he was able to steal as much as $30,000. He told authorities that after leaving Oshkosh, he planned to travel to Louisville, Kentucky.
United States Attorney Krueger commended the law enforcement agencies for excellent work in the investigation of these offenses. “ATM skimming is a serious offense. These identify theft crimes have serious consequences for both unknowing account holders and the financial institutions that maintain their accounts,” Krueger said.
Judge J.P. Stadtmueller, who presided over the case, has set sentencing for December 13, 2018 at 8:30 a.m. In addition to the Oshkosh Police Department, the case was investigated by the United States Secret Service and the Wauwatosa Police Department. The case was prosecuted by Assistant United States Attorneys Karine Moreno-Taxman and Carol L. Kraft.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Leader of West Baltimore’s Violent Pedestal Gardens Gang Sentenced to 25 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Deandre Smith, age 28, and Karron Wheeler, age 35, both of Baltimore, to 12 years and 25 years in prison, respectively, for conspiring to sell heroin and fentanyl. Smith was sentenced today and Wheeler was sentenced on September 12, 2018.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Interim Police Commissioner Gary Tuggle of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
“Our city is plagued by the deaths caused by drug-trafficking gangs: They kill their customers with heroin and fentanyl, and they kill each other (and innocent bystanders) with guns and bullets. These gangs are terrorizing the neighborhoods that they occupy,” said U.S. Attorney Robert K. Hur. “Police, federal agents, and prosecutors are working together to identify, disrupt, and hold accountable drug dealers who bring violence to Baltimore City and remove entire groups of them from our neighborhoods.”
According to Smith’s plea agreement, from at least July 2015 through April 28, 2016, Smith managed a large drug-trafficking organization that supplied heroin and fentanyl to distributors in Baltimore, including Wheeler. Smith also managed a drug trafficking operation that operated in and around Pedestal Gardens, an apartment complex located in the 300 block of McMechan Street in West Baltimore.
Smith maintained a “stash” house in Catonsville, Maryland, to store drugs and drug proceeds, and to process, and package drugs for distribution. Once packaged for distribution, Smith supplied large quantities of heroin and/or fentanyl to several drug shops in Baltimore, including shops operated by Wheeler. At Pedestal Gardens, Smith’s operation distributed “packs” of heroin and/or fentanyl. Each “pack” typically contained between 25 and 50 gel capsules of the drugs, totaling approximately 2.5 to 5 grams.
As detailed in Smith’s plea agreement, a co-conspirator killed two individuals on October 7, 2015 and August 10, 2016 respectively, to further the Pedestal Gardens drug organization’s drug trafficking activities. The organization believed that one of the individuals was distributing drugs in their territory, and that the other was robbing drug dealers in the area and disrupting the organization’s drug trafficking.
On April 28, 2016, law enforcement officers executed a search warrant at the stash house in Catonsville. At the time of the search warrant, officers located Smith and other conspirators inside the residence. During the search, officers discovered over a kilogram of fentanyl, 575 grams of heroin, and nine grams of cocaine, all of which was being packaged for distribution. Officers also discovered approximately two kilograms of Phenacetin, a substance commonly used to “cut” drugs, as well as drug paraphernalia and approximately $15,465 in cash. Smith also had approximately $2,000 cash in his pocket.
According to Wheeler’s plea agreement, between at least March 2015 and August 26, 2016, Wheeler managed a drug organization that operated in several locations in Baltimore, including Pennsylvania Avenue and Laurens Street in West Baltimore. During the course of the conspiracy, Wheeler employed or directed more than five individuals. Wheeler admitted that, at his direction, the organization kept a firearm in close proximity to the drug shop for protection and to facilitate the drug operation.
Smith and Wheeler admitted that during their participation in the conspiracy they and their co-conspirators distributed between one and three kilograms of heroin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the FBI, the Baltimore Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Daniel C. Gardner and Christopher J. Romano, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Lawrence Woman Sentenced for Making False Statements on Naturalization ApplicationRead the Press Release
BOSTON – A Lawrence woman was sentenced today in federal court in Boston for making false statements on her naturalization application.
Francisca De La Cruz, 50, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to one year of probation, during which she must complete 200 hours of community service. In May 2018, De La Cruz pleaded guilty to one count of making false statements in an immigration document.
On Nov. 25, 2013, De La Cruz submitted an Application for Naturalization in which she omitted the fact that she had been arrested and criminally charged in 2006, and that when she was arrested, she identified herself to police as “Mercedes Abrue,” which was a false name.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit prosecuted the case.
Laconia Man Sentenced to over Five Years in Prison for Firearm CrimeRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that Tyler Twombly, 33, of Laconia, was sentenced to 63 months in federal prison for being a felon in possession of a firearm.
According to court documents and statements in court, on May 30, 2017, a Manchester police officer arrested Twombly on an outstanding state arrest warrant. During the arrest, the officer observed a firearm sticking out of Twombly’s pants. Twombly is prohibited from possessing a firearm because he is a convicted felon.
Twombly previously pleaded guilty on April 26, 2018.
“Project Safe Neighborhoods is an important effort to improve the safety of our community,” said U.S. Attorney Murray. “Through this program, we work closely with our law enforcement partners to get guns out of the hands of criminals so we can reduce violent crime and protect the citizens of the Granite State.”
The matter was investigated by the Manchester Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Debra M. Walsh prosecuted the case.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Keene Man Pleads Guilty to Sexually Exploiting a ChildRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Benjamin Gagnon, 35, of Keene, New Hampshire, pled guilty today in U.S. District Court in Concord, New Hampshire to sexually exploiting a minor.
According to court records, in January 2017, Gagnon, who was in New Hampshire, persuaded a minor female in Texas to create still images and videos depicting the minor engaging in sexually explicit conduct. The minor transmitted the images and videos to Gagnon over the internet. Gagnon later uploaded the images to an online account, where they were found by investigators in August 2017.
Gagnon faces between 15 and 30 years in prison, a $250,000 fine and between five years and life on supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Derry, Hinsdale and Keene, New Hampshire Police Departments; the North Carolina Bureau of Investigation; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Justice Department Files Statement of Interest in New Asbestos Trust ProposalRead the Press Release
The Department of Justice today filed a Statement of Interest in In re Kaiser Gypsum Co. in the United States Bankruptcy Court for the Western District of North Carolina. In the case, Kaiser Gypsum Company and Hanson Permanente Cement Inc. propose the establishment of a new asbestos trust under 11 U.S.C. § 524(g), a section of the Bankruptcy Code that provides the framework for responding to the unique issues associated with asbestos liability.
“In recent years, alarming evidence has emerged of fraud and mismanagement inside asbestos trusts,” said Principal Deputy Associate Attorney General Jesse Panuccio. “Asbestos victims should feel certain that they will receive compensation when they are promised it, but fraudulent claims and mismanagement call that promise into question. In addition, the United States and all who depend on Medicare are harmed when Medicare is not reimbursed for treatment costs that have been paid by trust funds. With today’s Statement of Interest, the Department sends a clear message that we will not tolerate fraudulent conduct that cheats asbestos victims and the United States. This is just one action the Department will take to increase the transparency and accountability of asbestos trusts, and we are grateful for the many partners we have in that mission, including the many state attorneys general who have brought attention to this issue. We encourage anyone with information about fraud or mismanagement of asbestos trusts to report it to the Department of Justice.”
Congress enacted 11 U.S.C. § 524(g) to create a comprehensive mechanism for addressing injuries caused by asbestos. Under section 524(g) plans, asbestos-related claims may be channeled to a special trust created under the bankruptcy plan of reorganization, which then assumes responsibility for both the defense and payment of those claims. The trusts are managed by trustees, who often must secure support for major decisions from a “trust advisory committee” (TAC), whose members are often the same attorneys who represented asbestos claimants during the bankruptcy. Since 1994, more than 60 such trusts have been established by chapter 11 debtors with asbestos-related liabilities. According to the Government Accountability Office, asbestos bankruptcy trusts paid $17.5 billion from 1988 through 2011, and more recent studies estimate higher amounts.
In recent years, both courts and researchers have expressed growing concern that the trusts, enabled by a lack of oversight or accountability, may be paying fraudulent claims and mismanaging funds. In 2014, the same bankruptcy court in which the United States today filed its statement of interest found a substantial pattern of fraud in another case, In re Garlock Sealing Technologies, LLC, 504 B.R. 71 (Bankr. W.D.N.C. 2014). The court found that, in a sample of 15 civil asbestos cases, in each and every case key evidence about asbestos exposure had been improperly misrepresented or withheld. In three instances, plaintiffs made claims against defendants to whose products they had previously represented they had never been exposed. Similarly, several studies have demonstrated problems caused by the lack of oversight. One study found that, in the study period, people without malignant asbestos injury accounted for 86 percent of all claims made to the trusts and 37 percent of all trust payments. Another found that many of the claim forms submitted by the same claimants and law firms to different trusts contradicted each other. The secrecy with which many trust claims are submitted, allowed, and paid has made it nearly impossible to detect when plaintiffs are seeking a recovery based on misrepresentations.
The United States’ Statement of Interest argues that the plans currently on file in this case do not have sufficient safeguards in place to prevent fraud and abuse. The Statement also indicates that the United States will object to any plan that lacks critical provisions to ensure transparency and accountability and to prevent fraudulent claims and mismanagement of the trust funds, including provisions: that require compliance with the Medicare Secondary Payer Statute; that notify claimants of their potential obligation to reimburse Medicare; that prevent excessive administrative costs and attorney contingency fees; that avoid conflicts of interest among members of the TAC; and that prevent payments to those who cannot demonstrate exposure to the defendants’ products or who have made inconsistent claims in other asbestos proceedings. The United States is filing this Statement of Interest now to allow the parties sufficient time to address the concerns it raises.
Finally, in addition to filing the Statement of Interest, the Department also responded today to letters from 19 state attorneys general regarding concerns over asbestos trusts.
The Department will continue to look for opportunities to increase the transparency of asbestos trusts and protect the interests of legitimate claimants and the United States. The Department will also investigate conduct related to asbestos trusts that is illegal under federal law. If anyone has information on asbestos trust fraud or mismanagement, the Department welcomes the reporting of that information so that it may pursue all appropriate means under federal law to ensure that asbestos trusts operate lawfully and responsibly.
This matter has been handled by the Department’s Civil Division with assistance from the U.S. Trustee Program and the U.S. Attorney’s Office for the Western District of North Carolina.
Indiana Man Indicted for Conspiracy to Receive and Distribute Child PornographyRead the Press Release
A federal grand jury in Alexandria, Virginia returned an indictment today charging an Evansville, Indiana man with one count of conspiracy to receive and distribute child pornography, one count of distribution of child pornography, and one count of receipt of child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office and Chief Michael L. Brown of the Alexandria Police Department, made the announcement.
Bradley Robert Segert, 30, is charged with one count of conspiracy to receive and distribute child pornography, one count of distribution of child pornography, and one count of receipt of child pornography. According to the indictment, between January 2015 and August 2015, Segert allegedly administered a private chat group on Kik Messenger, a mobile messaging application, dedicated to sharing and trading images and videos of child pornography. During this period, Segert and another administrator living within the Eastern District of Virginia allegedly required Kik users interested in becoming members of the group to send them images and videos of child pornography in order to gain admission. Additionally, the indictment alleges that Segert knowingly distributed and received child pornography in interstate commerce, including to and from the Eastern District of Virginia.
FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, specifically the Alexandria Police Department, is investigating the case. The Task Force is comprised of agents of the FBI, U.S. Marshals, and detectives from the Prince William County Police, Fairfax County Police, Loudoun County Sheriff’s Office, Metropolitan Police, Alexandria City Police, Arlington County Police, Leesburg Police, Virginia State Police and the Offices of Inspector General of several federal agencies. Trial Attorneys James E. Burke IV, Gwendelynn Bills and William Clayman of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Honduran National Sentenced for Violations of the Federal Gun Control ActRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ELMER JAVIER ACOSTA-MEJIA, age 27, a citizen of Honduras, was sentenced today after previously pleading guilty to a two-count indictment for violations of the Federal Gun Control Act.
United States District Court Judge Eldon E. Fallon sentenced ELMER JAVIER ACOSTA-MEJIA to ten months imprisonment, followed by 1 year supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of Immigration and Customs Enforcement for removal proceedings.
According to court documents, ELMER JAVIER ACOSTA-MEJIA, an alien illegally present in the United States, sold two revolvers to a confidential informant that was working for Special Agents of the Department of Homeland Security.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Harrisonburg Man Pleads Guilty to Distributing Fatal Mixture of Heroin and FentanylRead the Press Release
Harrisonburg, VIRGINIA – A Harrisonburg man, who sold a fatal mix of heroin and fentanyl, pleaded guilty yesterday in U.S. District Court in Harrisonburg to federal drug distribution charges, United States Attorney Thomas T. Cullen announced.
Richard William Mansfield, 38, waived his rights to be indicted and pleaded guilty yesterday to a one-count Information charging him with distribution of a mixture and substance containing heroin and fentanyl. A sentencing hearing has been scheduled for January 28, 2019. At sentencing, Mansfield faces a maximum statutory penalty of up to 30 years in prison and/or a fine of up to $2 million.
“As this heartbreaking case illustrates, the opioid epidemic is destroying the fabric of our society,” U.S. Attorney Cullen stated today. “While there is no simple solution to this multi-faceted problem, the United States Attorney’s Office will continue to work with our state and local law-enforcement partners to prosecute those who deal these deadly drugs and seek stiff federal penalties, particularly in cases where the unlawful distribution results in the loss of life. At the same time, we will continue to treat victims with compassion, while supporting treatment for those struggling with addiction.”
According to evidence presented to the court by Assistant United States Attorney Jeb Terrien, on December 12, 2017, Mansfield sold a mixture of heroin and fentanyl to Matthew Jason Murphy. The following day, December 13, 2017, Murphy was found deceased following a drug overdose. A medical examination and toxicology analysis determined that Murphy died from fentanyl and heroin intoxication.
The investigation of the case was conducted by the Drug Enforcement Administration, Virginia State Police, and Harrisonburg Police Department, with the assistance of Rockingham County Commonwealth’s Attorney Marsha L. Garst. Assistant United States Attorney Jeb Terrien is prosecuting the case for the United States.
Greenville, Georgia Resident Sentenced Under Project Safe NeighborhoodsRead the Press Release
ALBANY: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Kevin Alford, age 41, of Greenville, Georgia, was sentenced to 144 months in Federal prison for Possession with Intent to Distribute Methamphetamine before the U.S. District Court Judge Leslie J. Abrams in Albany, Georgia on September 13, 2018.
According to court records, a cooperating witness whom Mr. Alford had previously given methamphetamine set up a meeting with Mr. Alford at the FairFax Motel in Leesburg, Georgia to take delivery of more methamphetamine. DEA agents contacted Lee County Sheriff’s Office personnel to advise them of Mr. Alford’s anticipated arrival. The Lee County Deputies set up surveillance to await Mr. Alford’s arrival at the motel. Mr. Alford subsequently arrived in a rental vehicle accompanied by Donna Parks. A search of the vehicle uncovered methamphetamine, marijuana, cell phones, and a loaded .38 caliber Smith and Wesson revolver.
Both Mr. Alford and Ms. Parks are convicted felons. After waiving his Miranda rights, Mr. Alford acknowledged his multiple prior felony convictions and provided limited details into his drug distribution operation. Ms. Parks admitted that she was in joint possession of the firearm along with Mr. Alford. Court-authorized analysis of the cell phones seized in the car revealed numerous text messages between Mr. Alford and unknown persons regarding the acquisition and distribution of quantities of drugs. The methamphetamine was submitted for laboratory analysis and found to weigh 330 grams and be 95% pure d-methamphetamine hydrochloride.
On May 31, 2018, Donna Parks, age 37, also of Greenville, Georgia, also entered a guilty plea to Possession of a Firearm by a Convicted Felon. She will be sentenced in December.
“Felons with a gun and methamphetamine pose a significant danger to our community,” said U.S. Attorney Charles E. Peeler. “I commend the Drug Enforcement Administration and the Lee County Sheriff’s Office for their investigation and efforts in this case.”
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was investigated by the Drug Enforcement Administration and the Lee County Sheriff’s Office. Assistant United States Attorney Leah E. McEwen prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Four Defendants Sentenced Following Convictions at Trial for Stealing Confidential Government Information and Using It to Engage in Illegal TradingRead the Press Release
Robert Khuzami, the Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced today that DAVID BLASZCZAK, a political intelligence consultant, was sentenced to 12 months and one day in prison; CHRISTOPHER WORRALL, a government employee at the Centers for Medicare and Medicaid Services (“CMS”), was sentenced to 20 months in prison; and THEODORE HUBER and ROBERT OLAN, two partners and analysts at Deerfield Management Company, L.P., a healthcare-focused hedge fund in New York, New York (“Deerfield”), were each sentenced to 36 months in prison, respectively, in connection with their convictions following a four-week jury trial.
BLASZCZAK, WORRALL, HUBER, and OLAN each participated in a scheme to obtain confidential information from CMS, which was then used execute profitable trades at Deerfield. Specifically, as part of the scheme, BLASZCZAK obtained confidential and nonpublic information from CMS employees, including his friend, CHRISTOPHER WORRALL, who worked at CMS, and who breached his duties as a CMS employee by providing confidential information to BLASZCZAK. BLASZCZAK then provided this material nonpublic information in advance of market-moving CMS announcements to employees at Deefield, including HUBER, OLAN, and Jordan Fogel, who recommended trades on the basis of the information. Fogel, a former partner and analyst at Deerfield, previously pled guilty and is cooperating with the Government. As a result of these trades, Deerfield reaped more than $7 million in profits.
In a separate scheme, BLASZCZAK also obtained confidential and nonpublic CMS information about cuts in CMS’s reimbursement rates for home health providers, and provided that information to Christopher Plaford, a portfolio manager at Visium Asset Management, L.P., another healthcare-focused hedge fund in New York, New York (“Visium”). Plaford then used BLASZCZAK’s information to execute trades, resulting in approximately $330,000 in profits. Plaford has previously pled guilty to this conduct and is also cooperating with the Government.
Deputy U.S. Attorney Robert Khuzami said: “Blaszczak, Worrall, Huber, and Olan conspired to steal highly sensitive and confidential government information and profit from that theft. This scheme was carried out through Blaszczak’s purported ‘political intelligence’ firm, but nothing about this scheme was intelligent. When you steal confidential information from the Government and use it to make illicit millions in the stock market, you will get caught.”
According to the allegations in the charging documents, the evidence and testimony at trial, and statements made in court proceedings:
CMS
CMS, a component of the United States Department of Health and Human Services (“HHS”), administers Medicare and Medicaid, among other things. CMS is also responsible for setting Medicare reimbursement rates for healthcare providers. CMS spends more than $1 trillion annually and pays approximately one-third of the country’s health expenditures. Accordingly, CMS rulemaking decisions, including decisions that affect how much the federal government will pay to reimburse medical providers for services rendered, have a substantial, market-moving impact on publicly traded companies that depend on government healthcare spending.
WORRALL began working at CMS in or about 1999. Beginning in January 2012, WORRALL worked in the Director’s Office for the Center for Medicare (“CM”), which gave WORRALL broad access to CMS’s confidential deliberations about upcoming reimbursement decisions. WORRALL also served as a project manager for a confidential CMS database that contained CMS’s most up-to-date claims data that CMS used to inform its decision-making.
David Blaszczak
At all relevant times, BLASZCZAK served as a consultant at a number of Washington, D.C.-based firms that, in exchange for a fee, provided so-called “political intelligence,” which included analysis about how changes in Government reimbursement rates would impact publicly traded healthcare-related companies. Before becoming a political intelligence consultant, BLASZCZAK worked at CMS, eventually serving as a special assistant to the CMS Administrator. BLASZCZAK met WORRALL while the two worked at CMS.
As a former CMS employee, BLASZCZAK was well aware of CMS’s rules governing the dissemination of nonpublic information.
Deerfield Management Company, L.P.
At all relevant times, Deerfield managed multiple hedge funds specializing in healthcare-related investments. As of 2017, Deerfield had more than $7 billion in assets under management. HUBER, OLAN, and Fogel were partners and analysts at Deerfield, where their job was to analyze investment decisions and recommend potentially profitable trades for Deerfield. Deerfield’s compliance manual prohibited its employees from committing insider trading.
The Scheme to Convert and Use Confidential CMS Information
The Scheme
From at least in or about 2009 through in or about 2014, BLASZCZAK, WORRALL, HUBER, OLAN, Fogel, and others participated in a scheme to convert to their own use confidential and material nonpublic information from CMS concerning, among other things, CMS’s internal deliberations regarding coverage and reimbursement decisions.
During this time period, Deerfield retained BLASZCZAK as a consultant who provided political intelligence related to, among other things, the content, likelihood, and timing of CMS reimbursement decisions. As part of the scheme, HUBER, OLAN, and Fogel encouraged BLASZCZAK to obtain confidential and material nonpublic information from CMS insiders. As HUBER, OLAN, and Fogel knew, these CMS insiders included BLASZCZAK’s former colleagues with whom he had close personal relationships, who were prohibited from disclosing such information to CMS outsiders.
BLASZCZAK obtained material nonpublic information from his close friend and former CMS colleague WORRALL. BLASZCZAK and WORRALL were friends since their time working together at CMS. BLASZCZAK also frequently offered to help WORRALL find lucrative private sector employment opportunities, in exchange for WORRALL giving BLASZCZAK confidential government information.
BLASZCZAK conveyed the information obtained from WORRALL to HUBER, OLAN, and Fogel, who – knowing that BLASZCZAK had obtained the information improperly from a CMS insider – used the information to trade. In exchange for being provided with this inside information, HUBER, OLAN, and Fogel caused Deerfield to pay BLASZCZAK more than $800,000 in consulting fees.
The Verdict
The jury found BLASZCZAK guilty of 10 counts, HUBER and OLAN guilty of five counts each, and WORRALL guilty of two counts. Specifically, with respect to Count One (conspiracy to convert government property, to commit securities fraud, and to defraud the United States relating to Deerfield) and Count Two (conspiracy to commit wire fraud and securities fraud relating to Deerfield), the jury found BLASZCZAK, HUBER, and OLAN guilty. With respect to Count Three (conversion of government property) and Count Nine (wire fraud), the jury found all four defendants guilty. With respect to Count Ten (securities fraud), the jury found BLASZCZAK, HUBER, and OLAN guilty. With respect to Count Thirteen (conversion of government property), Count Fifteen (wire fraud), Count Sixteen (securities fraud), Count Seventeen (conspiracy to convert government property and to defraud the United States relating to Visium), and Count Eighteen (conversion of government property), the jury found BLASZCZAK guilty on each count.
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In addition to his prison sentence, BLASZCZAK, 42, of Isle of Palms, South Carolina, was sentenced to two years of supervised release, including one year of home confinement, and ordered to forfeit $727,500 and pay restitution to CMS in the amount of $1,644.26.
WORRALL, 40, of Linthicum Heights, Maryland, was sentenced to one year of supervised release, and ordered to pay restitution to CMS in the amount of $1,644.26.
HUBER, 56, of Westport, Connecticut, was sentenced to two years of supervised release, and ordered to forfeit $87,078, pay restitution to CMS in the amount of $1,644.26, and pay a fine of $1.25 million.
OLAN, 47, of Rumson, New Jersey, was sentenced to two years of supervised release, and ordered to forfeit $98,244, pay restitution to CMS in the amount of $1,644.26, and pay a fine of $1.25 million.
Mr. Khuzami praised the work of the Federal Bureau of Investigation and U.S. Department of Health and Human Services, Office of the Inspector General, and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Ian McGinley and Joshua A. Naftalis are in charge of the prosecution.
Fort Wayne Man Charged with Bank RobberyRead the Press Release
FORT WAYNE – Larry Ratliff, 46 years old, of Fort Wayne, Indiana, was charged on September 10, 2018 by criminal complaint with one count of bank robbery, announced United States Attorney Thomas L. Kirsch II.
According to documents in the case, on August 18, 2018, a lone male entered a Credit Union in Fort Wayne, Indiana threatened the employees inside, then took approximately $10,000 in cash before fleeing in a white pickup truck. That pickup truck was found still running several hours later in the rear of a nearby apartment complex. The pickup truck was owned by an Indianapolis, Indiana construction company and had been stolen from Indianapolis a few days prior to the robbery. Fingerprints belonging to Ratliff were recovered from inside the pickup truck and an employee of the credit union identified Ratliff as the robber.
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated by the FBI, the Organized Crime and Corruption Unit of Indiana State Police, the Fort Wayne Police Department, and the Allen County Sheriff’s Department. It is being prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
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Fort Lauderdale Resident Sentenced to 92 Years in Prison for Armed Robberies and CarjackingRead the Press Release
Today, a Fort Lauderdale resident was sentenced to over 92 years in prison by United States District Senior Judge James I. Cohn, after having been convicted at trial of three armed robberies, a carjacking, and brandishing a firearm during the commission of each violent act.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Rick Maglione, Chief, Fort Lauderdale Police Department (FLPD), and Keith Dunn, Chief, Davie Police Department, made the announcement.
De Andre Smith, 23, of Fort Lauderdale, Florida, was convicted by a trial jury on July 2, 2018, on all eight federal charges. Smith was sentenced to a total of 1,105 months in prison, to be followed by 5 years of supervised release.
According to the court record, on December 12, 2017, Smith brandished a firearm at an IT Tech in Fort Lauderdale, demanding software be placed on his computer. When the tech refused, Smith proceeded to beat the tech in the face with the firearm and then steal computer software. As a result of this beating, the tech eventually had to have one eye amputated.
On December 20, 2017, Smith carjacked a victim at gunpoint in Fort Lauderdale. Smith then immediately went to a Dunkin Donuts in Davie, jumped the counter and held the clerk at gunpoint, while demanding money. After obtaining money, Smith then left and went to a third location in South Florida, a Subway restaurant in Davie. There, at gunpoint, Smith again jumped the counter, demanded and stole money from the employees.
This case stems from Project Safe Neighborhoods (PSN), a program that brings 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.
Mr. Greenberg commended the investigative efforts of the ATF, FLPD and Davie Police Department in this matter. The case was prosecuted by Assistant U.S. Attorneys Jodi L. Anton and Francis Viamontes.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Virtual Currency CEO Involved in $9 Million Fraud Scheme Sentenced to PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that HOMERO JOSHUA GARZA, 33, of Texas, formerly of Somers, Connecticut, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 21 months of imprisonment, followed by three years of supervised release, the first six months of which GARZA must spend in home confinement, for his role in his companies’ purported generation and sale of virtual currency.
According to court documents and statements made in court, “virtual currency” is a digital representation of a value that can be traded and functions as a medium of exchange. Virtual currency generally is not issued or guaranteed by any jurisdiction or government, and its value is decided by consensus within the community of users of the virtual currency. A virtual currency generally self-generates units of currency through a process called “mining.” A virtual currency “miner” is computer hardware that runs special computer software to solve complex algorithms that validate groups of transactions in that virtual currency. Once a complex algorithm is solved, a unit of currency, such as a bitcoin, is awarded to the individual operating the miner. This process is known as “mining.”
Between approximately May 2014 and January 2015, GARZA, through GAW, GAW Miners, ZenMiner, and ZenCloud, companies he founded and operated, defrauded victims out of money in connection with the procurement of virtual currency on their behalf. The companies sold miners, access to miners, and the right to purchase a virtual currency called PayCoin, as well as “hashlets.” A hashlet entitled an investor to a share of the profits that GAW Miners or ZenMiner would purportedly earn by mining virtual currencies using the computers that were maintained in their data centers. In other words, hashlet customers, or investors, were buying the rights to profit from a slice of the computing power owned by GAW Miners and ZenMiner.
To generate business and attract customers and investors, GARZA made multiple false statements related to the scheme, including stating that GAW Miners’ parent company purchased a controlling stake in ZenMiner for $8 million and that ZenMiner became a division of GAW Miners. In fact, there was no such transaction. GARZA also stated that the hashlets GARZA’s companies sold engaged in the mining of virtual currency. In fact, GARZA’s companies sold more hashlets than was supported by the computing power maintained in their data centers. Stated differently, GARZA’s companies sold the customers the right to more virtual currency than the companies’ computing power could generate. GARZA also stated that the market value of a single PayCoin would not fall below $20 per unit because GARZA’s companies had a reserve of $100 million that the companies would use to purchase Paycoins to drive up its price. In fact, no such reserve existed.
During the scheme, GARZA, through his companies, used money his companies had made from new hashlet investors to pay older hashlet investors. The payments were money that the companies owed the older investors based on the purported mining GAW Miners and ZenMiner had done on the investors’ behalf.
Through this scheme, GARZA defrauded hundreds of individuals around the world of a total of $9,182,000. Judge Chatigny ordered GARZA to pay restitution in that amount.
On July 20, 2017, GARZA pleaded guilty to one count of wire fraud.
GARZA, who is released on bond, was ordered to report to prison on January 4, 2019.
This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Jonathan Francis.
Former Margate Mortgage Consultant Admits Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A former Atlantic County resident now living in Florida admitted defrauding New Jersey state health benefits programs out of millions of dollars by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito and N.J. Attorney General Gurbir S. Grewal announced.
Robert Madonna, 36, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
Madonna was one of the owners of a company formed to market prescription compounded medications, referred to as Company 1. From May 2015 through February 2016, Madonna and others associated with the company persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications.
The conspirators learned that certain compound medication prescriptions – including pain, scar, and antifungal creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply. The conspirators also learned that the N.J. State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents, would cover compound medication prescriptions.
Madonna and his conspirators entered into an agreement under which Company 1 would receive a percentage of the amounts paid to compounding pharmacies for prescriptions secured by Madonna and his conspirators. Madonna and his conspirators then recruited public employees, offered them hundreds of dollars per month, and persuaded them to agree to obtain prescription compounded medications without any examination by a medical professional that the medications were medically necessary. Madonna would obtain insurance and personal information from the public employees and give that information to conspirators. A doctor then would call the public employees and complete the prescription without personally examining the employees or having a prior doctor/patient relationship with them. Company 1 would receive a percentage of the amounts paid on these fraudulent prescriptions, which Madonna and others would divide.
According to the information, Madonna and his conspirators caused New Jersey to pay more than $2 million in fraudulent claims for compounded medications for public employees.
Madonna received $179,370 in gross proceeds for his role in the scheme. As part of his plea agreement, Madonna must forfeit these criminal proceeds and pay restitution of at least $2,092,791.
Madonna faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Feb. 5, 2019.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge John Tafur in Newark: and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Former Mafia Boss and Associate Sentenced to Life in Prison for 1993 MurderRead the Press Release
BOSTON – Francis “Cadillac” Salemme, a former boss of the New England Family of La Cosa Nostra (NELCN), and former NELCN associate Paul Weadick were sentenced today in federal court in Boston in connection with the 1993 murder of Steven A. DiSarro.
Francis P. Salemme, 85, and Paul M. Weadick, 63, were sentenced by U.S. District Court Judge Allison D. Burroughs to life in prison. On June 22, 2018, Salemme and Weadick were convicted by a federal jury of one count of murder of a federal witness.
In the early 1990s, Salemme was the boss of the NELCN. At the time, DiSarro managed a South Boston night club, known as “The Channel,” in which Salemme and his son, Francis P. Salemme Jr. had a financial interest. As a federal investigation was narrowing in on the Salemmes, DiSarro’s connection to the mafia boss was discovered and he was approached by federal investigators to cooperate. Knowing this, Salemme had DiSarro murdered on May 10, 1993, in Salemme’s Sharon residence. Salemme, who had ordered the murder to prevent DiSarro from cooperating with law enforcement, watched as Salemme Jr. and Weadick fatally strangled DiSarro. Salemme then ordered DiSarro’s body transported to Providence, R.I., and buried. In March 2016, DiSarro’s remains were recovered by federal authorities behind a mill in Providence, R.I.
In 1995 Salemme was indicted on federal racketeering charges and convicted in 1999. He was subsequently convicted of obstruction of justice in 2008 for lying to federal authorities about the murder of DiSarro. Salemme Jr. died in 1995.
United States Attorney Andrew E. Lelling for the District of Massachusetts; United States Attorney Stephen G. Dambruch for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Ann C. Assumpico, Superintendent of the Rhode Island State Police, made the announcement today.
Assistance was also provided by the Norfolk County District Attorney’s Office and the Providence, R.I., Police Department.
Assistant U.S. Attorneys Fred M. Wyshak Jr., Chief of Lelling’s Public Corruption Unit, and William J. Ferland, Chief of the Criminal Division in U.S. Attorney Dambruch’s Office, prosecuted the case.
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Former Mafia Boss and Associate Sentenced to Life in Prison for 1993 MurderRead the Press Release
BOSTON – Francis “Cadillac” Salemme, a former boss of the New England Family of La Cosa Nostra (NELCN), and former NELCN associate Paul Weadick were sentenced today in federal court in Boston in connection with the 1993 murder of Steven A. DiSarro.
Francis P. Salemme, 85, and Paul M. Weadick, 63, were sentenced by U.S. District Court Judge Allison D. Burroughs to life in prison. On June 22, 2018, Salemme and Weadick were convicted by a federal jury of one count of murder of a federal witness.
In the early 1990s, Salemme was the boss of the NELCN. At the time, DiSarro managed a South Boston night club, known as “The Channel,” in which Salemme and his son, Francis P. Salemme Jr. had a financial interest. As a federal investigation was narrowing in on the Salemmes, DiSarro’s connection to the mafia boss was discovered and he was approached by federal investigators to cooperate. Knowing this, Salemme had DiSarro murdered on May 10, 1993, in Salemme’s Sharon residence. Salemme, who had ordered the murder to prevent DiSarro from cooperating with law enforcement, watched as Salemme Jr. and Weadick fatally strangled DiSarro. Salemme then ordered DiSarro’s body transported to Providence, R.I., and buried. In March 2016, DiSarro’s remains were recovered by federal authorities behind a mill in Providence, R.I.
In 1995 Salemme was indicted on federal racketeering charges and convicted in 1999. He was subsequently convicted of obstruction of justice in 2008 for lying to federal authorities about the murder of DiSarro. Salemme Jr. died in 1995.
United States Attorney Andrew E. Lelling; United States Attorney Stephen G. Dambruch for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Ann C. Assumpico, Superintendent of the Rhode Island State Police, made the announcement today. Assistance was also provided by the Norfolk County District Attorney’s Office and the Providence, R.I., Police Department. Assistant U.S. Attorneys Fred M. Wyshak Jr., Chief of Lelling’s Public Corruption Unit, and William J. Ferland of Dambruch’s Office prosecuted the case.
Former Kentucky Police Officer Sentenced for Wrongful ArrestRead the Press Release
William Dukes, Jr., a former sergeant with the Providence, Kentucky, Police Department, was sentenced today to 42 months in federal prison and three years’ supervised release for willfully depriving a Kentucky citizen of his constitutional rights under color of law, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division and U.S. Attorney Russell Coleman for the Western District of Kentucky.
The jury found that Dukes willfully violated the Constitution by arresting the victim, while knowing that he did not have probable cause to believe that the victim had committed any crime. The evidence presented at trial established that after the victim called the authorities seeking to file a complaint about an earlier interaction with Dukes, he wrongfully arrested the victim.
The jury heard evidence presented in court that when the victim called the Providence Police Department to complain about Dukes, Dukes responded by threatening to arrest him if he called back again. Still determined to file a complaint, the victim then called the local sheriff’s office and the Kentucky State Police. When Dukes became aware of these additional calls, he drove to the victim’s home in the middle of the night, without a warrant, to arrest him.
Upon arriving at the victim’s home after 1 a.m., Dukes attempted to arrest the victim based solely on the phone calls he had made complaining about Dukes. When the victim insisted he had done nothing wrong and retreated into his home, Dukes entered the victim’s home without a warrant. Dukes then tased the victim, sprayed him in the face with pepper spray, struck him repeatedly with a police baton, and punched him in the face, breaking the victim’s nose. Next, Dukes handcuffed the victim and charged him with four crimes, including a charge of property damage because blood from the victim’s broken nose got onto Dukes’s police uniform.
The jury convicted Dukes of willfully violating the victim’s constitutional rights, and found that the offense involved the use of a dangerous weapon or resulted in bodily injury.
“Police officers have a duty to protect the rights of members of their communities and safeguard them from harm or injury,” said Acting Assistant Attorney General John Gore. “Dukes abused his authority as a law enforcement officer by illegally arresting his victim and also by inflicting unwarranted physical harm, and the Justice Department held him responsible.”
“Kentucky lawmen and women are among the finest in the nation,” said U.S. Attorney Russell Coleman “But when they cross a clear line, as did Mr. Dukes, they will be held accountable like any other citizen of our Commonwealth.”
This case was investigated by the Louisville Division of the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Seth Hancock of the Western District of Kentucky and Trial Attorney Zachary Dembo of the Criminal Section of the Civil Rights Division.
Former Arkansas State Representative, President of College and Consultant Sentenced for Bribery SchemeRead the Press Release
A consultant along with his co-conspirators, the President of an Arkansas college and a former Arkansas State Representative, were sentenced in the past week for their roles in a bribery scheme in which state funds were directed to non-profit entities in exchange for kickbacks, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Duane “DAK” Kees for the Western District of Arkansas.
Randell G. Shelton Jr., 39, of Kemp, Texas, a consultant, was sentenced on Sept. 6 by U.S. District Judge Timothy L. Brooks to serve 72 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $660,698 and to forfeit $664,000. Shelton was convicted by a federal jury on May 3 of 12 counts, including conspiracy and honest services wire and mail fraud. Also convicted in the scheme was former Arkansas State Senator Jonathan E. Woods, 41, of Springdale, Arkansas, of 15 counts, including conspiracy, honest services wire and mail fraud, and money laundering.
Oren Paris III, 50, of Springdale, Arkansas, President of Ecclesia College, was sentenced yesterday to serve 36 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $621,500. Paris pleaded guilty before Judge Brooks to one count of honest services wire fraud on April 5.
Micah Neal, 43, of Springdale, Arkansas, a former Arkansas State Representative was sentenced today to three years probation including the first year to be served as home confinement and the second and third years to include 300 hours of community service. Neal was also ordered to pay restitution in the amount of $200,000 to the State of Arkansas and the Northwest Arkansas Economic Development District (NWAEDD). Neal previously pleaded guilty before Judge Brooks to one count of conspiracy to commit honest services fraud.
According to admissions made in his plea agreement, Neal served as an Arkansas State Representative from 2013 to 2017. Neal admitted, and evidence presented at trial for Woods and Shelton revealed, that between sometime in 2013 and January 2015, Neal conspired with Woods to use their official positions to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities in exchange for bribes. Specifically, Neal and Woods authorized and directed the NWAEDD, which was responsible for disbursing the GIF, to award a total of approximately $600,000 in GIF money to the two non-profit entities. Pursuant to his plea agreement, Neal admitted that of the $600,000, he personally authorized and directed a total of $175,000 to the entities. In return for his official actions, Neal received approximately $38,000 in bribes from the two non-profit entities.
Neal was the fourth defendant involved in this bribery scheme to be sentenced within the past week. On Sept. 5, Woods was sentenced by Judge Brooks to serve 220 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $1,621,500 and to forfeit $1,097,005.
The FBI and IRS-Criminal Investigation investigated the case. Trial Attorney Sean F. Mulryne of the Criminal Division’s Public Integrity Section and First Assistant U.S. Attorney Kenneth Elser and Assistant U.S. Attorneys Kyra Jenner and Aaron Jennen of the Western District of Arkansas prosecuted the case.
Former Arkansas State Representative Sentenced to Three Years Probation for Wire FraudRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas announced today that Micah Neal, age 43, of Springdale, Arkansas, was sentenced today to three years probation including the first year to be served as home confinement and the second and third years to include 300 hours of community service, he was also ordered to pay restitution in the amount of $200,000.00. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
“Public corruption cases are among the most serious crimes that are investigated and prosecuted in our District,” said U.S. Attorney Kees. “These cases represent the very worst in deception and fraud because they involve a betrayal of the public trust. Jon Woods and Micah Neal were elected to offices in the State of Arkansas and swore an oath to protect and uphold the Arkansas Constitution. They failed that oath by betraying those who voted for them and scheming to steal money that rightfully belonged to the tax-payers and voters in the State of Arkansas. The sentences last week and this week in the public corruption scheme involving G.I.F. funds and bribery are the result of years of hard work by the assigned Assistant United States Attorneys working in partnership with the FBI and the IRS Criminal Investigation. It is my sincere hope that these sentences will serve as a deterrence for any individuals who would attempt to corrupt the legislative process in our State in the future. My office will continue to aggressively pursue public corruption cases and work with our partners in bringing those individuals to justice.”
According to the evidence presented at trial, Jonathan Woods served as an Arkansas State Senator from 2013 to 2017. Between approximately 2013 and approximately 2015, Woods used his official position as a senator to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities by, among other things, directly authorizing GIF disbursements and advising other Arkansas legislators – including former State Representative Neal, to contribute GIF to the non-profits. Specifically, Woods and Neal authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of approximately $600,000 in GIF money to the two non-profit entities. The evidence further showed that Woods and Neal received bribes from officials at both non-profits, including Paris, who was the president of a college. Woods initially facilitated $200,000 of GIF money to the college and later, together with Neal, directed another $200,000 to the college, all in exchange for kickbacks. To pay and conceal the kickbacks to Woods and Neal, Paris paid a portion of the GIF to Shelton’s consulting company. Shelton then kept a portion of the money and paid the other portion to Woods and Neal. Paris also bribed Woods by hiring Woods’s friend to an administrative position at the college.
For his part in the scheme, Neal pleaded guilty on Jan. 4, 2017, before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas to one count of conspiracy to commit honest services fraud. Paris pleaded guilty on April 5, 2018, before Judge Brooks to one count of honest services wire fraud. Woods was sentenced September 5, 2018 to 220 months in federal prison, Shelton was sentenced September 6, 2018 to 72 months in federal prison and Paris was sentenced September 12, 2018 to 36 months in federal prison.
The FBI and IRS investigated the case. First Assistant U.S. Attorney Kenneth Elser, Assistant U.S. Attorneys Kyra Jenner and Aaron Jennen of the Western District of Arkansas and Trial Attorney Sean F. Mulryne of the Criminal Division’s Public Integrity Section of the U.S. Department of Justice prosecuted the case.
Flushing, NY Man Sentenced for Conspiracy Related to Interstate Prostitution BusinessRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Cheng Qi Li, 29, of Flushing, NY, who was convicted of conspiracy to use interstate facilities to promote prostitution and to transport individuals in interstate commerce with intent that such individuals would engage in prostitution, was sentenced to serve 21 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated that the defendant was part of a multi-state prostitution business that sent female victims to cities and states across the Eastern United States to engage in commercial sex acts. As part of that business, Li and others posted advertisements on Backpage.com to set up meetings between clients and prostitutes in Tonawanda, NY and other cities and states. Co-defendant LiangLiang Guo acted as a driver for the prostitution business, driving the females to hotels where they would engage in commercial sex acts. Guo also collected the proceeds of the illicit prostitution business. Li assisted in the running of the business by posting the advertisements, arranging for the travel of the females, and receiving the money that represented was the profits of commercial sex acts.
The head of the organization was co-defendant Feng Yang Chen, who recruited the female victims and brought them over from China to serve as prostitutes in the United States. Chen’s organization spanned numerous states across the Eastern coastline and mid-west. Chen organized the operation, posted the advertisements online on Backpage.com, and collected the proceeds of the illegal sex acts. The female victims felt trapped and feared for their safety. Feng Yang Chen and LiangLiang Guo were previously convicted and are awaiting sentencing.
Today’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Tonawanda Police Department, under the direction of Chief Jerome C. Uschold III; the New York Police Department, under the direction of Chief James P. O’Neill; the South Portland, Maine Police Department, under the direction of Chief Edward Googins; and the Fairview Township Police Department, under the direction of Chief Jason C. Loper.
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Five Arrested and Charged as “Straw Purchasers” of 30 FirearmsRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that on September 13, 2018, Tyson Wells, Dara Bessette, Sierra Lacoste, Laci Baker, and Megan West, all of St. Albans, were arrested and charged with knowingly providing false information to firearms dealers in connection with the purchase of a firearm. In total, the defendants are responsible for the purchase of approximately thirty firearms that are believed to have been smuggled into Boston, Massachusetts, in connection with criminal gang activity.
The defendants appeared today in federal court in Burlington before United States Magistrate Judge John M. Conroy and entered pleas of not guilty to the federal complaint charging them with false statements in connection with the purchase of firearms. The defendants were ordered temporarily detained pending a detention hearing on September 17, 2018.
According to the criminal complaint, the defendants provided or helped to provide false information to gun shops; namely, information representing that they were purchasing the firearms for themselves and not for another person. In fact, these defendants conducted “straw-purchases” of firearms in exchange for either cocaine or heroin from drug dealers operating in Saint Albans and Swanton, Vermont. The defendants completed firearm transaction forms when purchasing the firearms in which they falsely stated that they were the actual buyers of the firearms and were not unlawful users of any controlled substances. The gun shops that these individuals patronized in Vermont are currently licensed by the Bureau of Alcohol, Tobacco, Firearms, and Explosives as federal firearms licensees and were not aware of the falsehoods involved in the straw-purchases.
U.S. Attorney Christina Nolan commended the collaborative investigation of ATF and the St. Albans Police Department leading to these important arrests. She noted, “This case highlights the commitment of the U.S. Attorney’s Office to prioritize firearms offenses. Those who violate gun laws by diverting weapons to the black market endanger innocent citizens and empower dangerous criminals. Federal, state, and local law enforcement will work as a team to bring consequences for such conduct, and will target such individuals for federal prosecution.”
U.S. Attorney Nolan also noted that this prosecution 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.
“The straw purchasing and illegal trafficking of firearms is a serious criminal activity and often puts firearms in the hands of individuals who can’t legally purchase or possess them,” said Lawrence Panetta, Assistant Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division. “ATF remains dedicated to identifying, investigating and arresting these individuals and making our streets and communities safer from violent firearm related acts.”
St. Albans Chief of Police Gary Taylor added, “This case is an excellent example of municipal law enforcement working with our federal law enforcement partners to make our community and our neighbors’ community in Boston safer.”
If convicted, Wells, Bessette, Lacoste, Baker, and West each faces up to ten years of imprisonment. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges in the complaint are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty.
The United States is represented in this matter by Assistant U.S. Attorney Abigail Averbach. Tyson Wells is represented by the Office of the Public Defender. Dara Bessette is represented by Richard Goldsborough. Sierra Lacoste is represented by Richard Bothfeld. Laci Baker is represented by Ernest Allen III. Megan West is represented by Thomas Sherrer. The case is currently under investigation by ATF agents in Vermont and Massachusetts and the St. Albans Police Department.
First INTERPOL Washington Chief VisitsRead the Press Release
Current USNCB Director Wayne H. Salzgaber presents a token of appreciation to the first USNCB Chief, Kenneth S. Giannoules.On Monday, September 10th, Kenneth S. Giannoules, the first Chief of INTERPOL Washington, the U.S. National Central Bureau (USNCB), visited the agency. He led the USNCB from 1969 to 1974 when the organization was an office in the Department of the Treasury. Giannoules met with current Director Wayne H. Salzgaber, toured the facilities, and addressed INTERPOL Washington staff. A career Secret Service agent, Giannoules helped to protect U.S. Presidents Truman, Eisenhower, Kennedy, and Johnson.
Fentanyl Trafficker who Illegally Possessed a Loaded Firearm Sentenced to 60 MonthsRead the Press Release
PITTSBURGH, Pa – A former resident of Pittsburgh, PA has been sentenced in federal court to 60 months in prison, to be followed by three years of supervised release, on his convictions on federal narcotics and firearms charges, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Devon Robinson, age 30. Robinson was detained after his initial appearance and will remain detained as he begins to serve his sentence.
According to information presented to the court Robinson possessed with the intent to distribute and distributed fentanyl to his co-defendant James Kadish on December 3, 2017. On December 4, 2017, members of the FBI Western Pennsylvania Opioid Task Force executed a search warrant at Robinson’s house in the city of Pittsburgh. Inside Robinson’s house, FBI investigators recovered a quantity of fentanyl from Robinson’s bedroom and a loaded firearm from his basement couch. Robinson had been previously convicted of a felony offense and was prohibited from possessing firearms. Robinson admitted to possessing the firearm and fentanyl to FBI investigators.
Assistant United States Attorney Timothy M. Lanni is prosecuted this case on behalf of the government.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the guilty plea in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, West Mifflin Police Department, and Pennsylvania Attorney General’s Office conducted the investigation that led to the guilty plea and sentence in this case.
Federal Jury Convicts Charleston Man of Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was convicted of a federal gun crime following jury trial before Senior United States District Judge David A. Faber, announced United States Attorney Mike Stuart. Michael Matthew Phillips, age 31, was convicted of possessing a firearm by a prohibited person.
“It’s simple – convicted felons are prohibited from possessing firearms,” said United States Attorney Mike Stuart. “Violations of our federal gun laws are serious matters that put public safety at risk. I applaud the excellent work of ATF, the Kanawha County Sheriff’s Department and Assistant United States Attorney Greg McVey.”
On January 24, 2017, Phillips was supposed to sell heroin and a firearm to a confidential informant. Phillips didn't bring heroin to the meeting because he was concerned that there were police officers in the area. However, Phillips took the confidential informant to an area where a 9mm handgun was hidden and sold the gun for $140. Phillips is a convicted felon and prohibited from possessing firearms.
Phillips faces up to 10 years in prison and up to a $250,000 fine when he is sentenced in January 2019.
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Executive Director of Fairfield Nonprofit Pleads Guilty to Embezzling DOJ Funds Intended for Domestic Violence Victims and Altering Records to Thwart a Federal InvestigationRead the Press Release
SACRAMENTO, Calif. — Claudia Humphrey, 62, of American Canyon, pleaded guilty today to theft of public money and falsifying records in a federal investigation, U.S. Attorney McGregor W. Scott announced.
According to court documents, Humphrey was the executive director of LIFT3 Support Group Inc., a non-profit organization in Fairfield that offered transitional shelter assistance and other services to victims of sexual assault, domestic violence, and dating violence, primarily serving residents in Solano County. Humphrey, through LIFT3, sought and received federal grants from the Department of Justice, Office on Violence Against Women (OVW) in 2011 and 2012. Humphrey caused to be transferred over $270,000 in grant money that was to be used only for assisting victims of domestic violence into her own bank accounts, and she used over $50,000 of the funds on personal expenses such as travel, shopping, and payments to her family members, among other things.
According to court documents, between October 2014 and August 2015, in an effort to conceal her embezzlement of federal funds, Humphrey obstructed the efforts of the OVW audit of LIFT3. Humphrey falsified purchase documents showing that computers were purchased, and she altered and falsified expense ledgers and time sheets.
This case is the product of an investigation by the Department of Justice Office of the Inspector General. Assistant United States Attorney Todd A. Pickles is prosecuting the case.
Humphrey is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on January 3, 2019 at 9:30 a.m. Humphrey faces a maximum statutory penalty of 10 years in prison for theft of public money, and 20 years in prison for falsifying a record in a federal investigation. Additionally, Humphrey faces a fine of $250,000 or twice the gross loss or gain. The actual sentence, however, will 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.
Essex County, New Jersey, Man Admits Robbing 14 Hotels in New Jersey and New YorkRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man admitted robbing 14 hotels in New Jersey and New York, U.S. Attorney Craig Carpenito announced today.
Tremone Burnett, 46, of Orange, New Jersey, pleaded guilty before U.S. District Court Judge Katharine S. Hayden in Newark federal court on Sept. 12, 2018, to two counts of an indictment charging him with one count of conspiracy to commit robbery and threaten physical violence, and one count of using a firearm during a crime of violence.
According to documents filed in this case and statements made in court:
From April 24, 2014, through June 19, 2014, Burnett robbed 12 New Jersey hotels and two New York hotels at gunpoint. The New Jersey hotels were located in Carteret, Lebanon, Newark, Rockaway, Secaucus, Avenel, Parsippany, Paramus, Weehawken, and Edison; the New York hotels were located in Airmont and Nanuet. In each robbery, Burnett wielded a handgun and, in some instances, tied the victim’s hands and feet. During one of the robberies, Burnett discharged his firearm.
The count of conspiracy to commit robbery and threaten violence carries a maximum penalty of 20 years in prison. The count of discharging a firearm during a crime of violence carries a maximum penalty of life in prison and a mandatory minimum sentence of 10 years in prison, which must run consecutively to any other prison term. Each count also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for Dec. 18, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and the Newark Department of Public Safety, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to today’s guilty plea. He also thanked the Carteret, Edison, Lebanon, Rockaway, Parsippany, Weehawken and Woodbridge Township police departments in New Jersey; the Clarkstown and Ramapo police departments in New York; the N.J. State Police; and the Bergen County, Hunterdon County, Middlesex County, and Morris County prosecutors’ offices for their work on this case.
The government is represented by Assistant U.S. Attorney Stephen Ferketic of the U.S. Attorney’s Office Public Protection Unit in Newark.
Eleven people indicted for conspiracy to traffic cocaine and methamphetamine from Texas to AkronRead the Press Release
Eleven people were indicted for their roles in a conspiracy to traffic large amounts of cocaine and methamphetamine from Texas to the Akron area.
All of the defendants named in the 27-count indictment are from Akron unless otherwise noted. They are: William G. Steen, 55, of Texas; Jonathan Johnson, 35; Darren Ross, 46, of Louisiana; Gregory Moran, TK, of Texas; Andre L. Brown, 47; Michael L. Weimer, 33; Harold W. Weimar III, 36; Travonte Bell, 26; Sanada S. Griffin, 36; Troy Whatley, 48; and Robert Zornes, Jr., 43.
All defendants conspired from January 2016 to possess with intent to distribute at least five kilograms of cocaine and 500 grams of methamphetamine.
Steen provided cocaine to Ross and Moran, who transported it to Johnson and others for distribution in the Akron area. Johnson, in turn, provided the cocaine to Michael Weimer and others. Johnson and Brown also supplied Weimer with methamphetamine, according to the indictment.
Brown faces additional charges of being a felon in possession of a firearm and possessing a firearm in relation to drug trafficking.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than maximum.
This cases is being prosecuted by Assistant U.S. Attorney Teresa Riley following an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Summit County Sheriff's Office, the police departments of Akron, Copley, Tallmadge, Stow, Cuyahoga Falls, Barberton, Springfield Township, New Franklin, Silver Lake, Reminderville and the University of Akron, the Ohio State Highway Patrol and the Summit County Prosecutor's Office.
An indictment is only a charge. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
El Paso, Texas, Man Pleads Guilty to Federal Drug Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Luis Trejo, 54, of El Paso, Texas, pled guilty this afternoon in federal court in Las Cruces, N.M., to methamphetamine trafficking charges.
Trejo was arrested on April 16, 2018, on a three-count indictment charging him with distributing methamphetamine on three dates in June 2017. According to the indictment, Trejo committed the offenses in Dona Ana County, N.M.
During today’s proceedings, Trejo pled guilty to the indictment and admitted distributing quantities of methamphetamine to an undercover law enforcement agent on the following dates: approximately 52 grams on June 13, 2017; approximately 55 grams on June 15, 2017; and approximately 52 grams on June 21, 2017. Trejo acknowledged obtaining the methamphetamine from an individual and distributing the methamphetamine to others in exchange for money.
At sentencing, Trejo faces a maximum penalty of 20 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by Homeland Security Investigations and the New Mexico State Police and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
East Hartford Woman Sentenced to 6 Years in Federal Prison for Heroin Trafficking and Immigration OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that GISEL DE LA CRUZ, 44, of East Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 72 months of imprisonment, followed by four years of supervised release, for heroin trafficking and immigration offenses.
According to court documents and statements made in court, in October 2016, the Drug Enforcement Administration’s Hartford Task Force began an investigation of an organization that was trafficking large quantities of heroin, fentanyl and other narcotics in Connecticut and western Massachusetts. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that members of the organization were receiving bulk quantities of heroin and fentanyl from out-of-state suppliers. They then stored, processed and packaged the heroin/fentanyl in multiple locations, including apartments located at 280 Collins Street in Hartford where some members of the organization also resided, and then distributed the drug in the Hartford area, and also the Springfield and Holyoke, Massachusetts area. A significant amount of drug trafficking activity occurred at the Neighborhood Supermarket, located at 316 Farmington Avenue in Hartford, which was owned and operated by DE LA CRUZ.
Investigators made multiple controlled purchases of heroin and fentanyl from DE LA CRUZ and other members of the drug trafficking organization in and around the Neighborhood Supermarket.
The investigation also revealed that DE LA CRUZ’s boyfriend, who lived with DE LA CRUZ, helped her run the store and assisted in the drug trafficking operation, was a citizen of the Dominican Republic who had previously been deported after a conviction for a federal narcotics offense. DE LA CRUZ paid $20,000 to smuggle her boyfriend back into the U.S. and, in December 2016, her boyfriend illegally reentered the country using fake Venezuelan identification documents.
During the investigation, law enforcement executed 12 search warrants in Connecticut and Massachusetts and seized approximately 10 kilograms of heroin and fentanyl, much of which was packaged for resale in hundreds of thousands of bags. Investigators also seized numerous vials of Xylazine, which is a horse tranquilizer used by narcotics traffickers as a heroin additive. Seven firearms also were seized.
DE LA CRUZ has been detained since her arrest on June 29, 2017. On May 23, 2018, she pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin, and one count of encouraging and inducing an alien to illegally come to, enter and reside in the U.S.
Fourteen individuals have been charged with various narcotics, firearms and immigration offenses as a result of this investigation.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the Federal Bureau of Investigation, U.S. Postal Inspection Service, U.S. Marshals Service and Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Drug Trafficker Pleads Guilty to Distributing Narcotics in Northwest Washington and MarylandRead the Press Release
WASHINGTON – Dontae Robey, 36, of Landover, Md., pled guilty today to trafficking in heroin, crack, and powder cocaine in the Shaw area of Northwest Washington and Maryland, announced U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Robey pled guilty before the Honorable Timothy J. Kelly in the U.S. District Court for the District of Columbia to one count of unlawful possession with intent to distribute 100 grams or more of heroin. The plea agreement, which is contingent upon the Court’s approval, calls for a sentence of eight years in prison, to be followed by four years of supervised release. Judge Kelly scheduled sentencing for Dec. 11, 2018.
As part of his plea agreement, Robey took responsibility for 110 grams of heroin, 67 grams of crack cocaine, and three grams of cocaine that were present in a silver Infiniti that Robey was operating on Nov. 19, 2017, following a traffic stop performed by members of MPD’s Narcotics and Special Investigations Division’s Criminal Interdiction Unit.
Additionally, on May 2, 2018, members of the FBI’s Safe Streets Task Force and MPD’s Third District Crime Suppression Team arrested Robey in the 700 block of S Street NW pursuant to an arrest warrant. Officers recovered a Lexus key on Robey’s person and a large amount of cash. A half-block away, law enforcement located a blue Lexus ES 350. Inside the vehicle, law enforcement recovered approximately 40 grams of heroin located in a small storage compartment to the left of the steering wheel. As part of his plea agreement, Robey admitted to possessing the narcotics inside the Lexus, and acknowledged that he maintained a residence in Landover, where he packaged quantities of narcotics for distribution and then distributed those narcotics in the District of Columbia.
Robey has three prior drug trafficking convictions related to offenses in the same location where he was arrested on May 2, 2018, all resulting from his possession of packaged narcotics in the neighborhood. In 2001, he was convicted of trafficking narcotics following his possession of 29 individually packaged ziplocs of crack cocaine. In 2002, he was convicted of trafficking narcotics after he was found in possession of 83 individually packaged ziplocs of crack cocaine. In 2008, he was convicted of attempting to distribute crack cocaine to an undercover officer.
In announcing the plea, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and MPD. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Candace Battle and Jeannette Litz, Assistant U.S. Attorney Laura Crane, who assisted with the investigation, and Assistant U.S. Attorneys Christopher Macchiaroli and David Misler, who prosecuted the case.
Dominican Republic Nationals Indicted for Illegally Reentering into the United StatesRead the Press Release
St. Thomas, USVI – A federal Grand Jury today returned separate indictments against Ezequiel Rivera Gomez aka Francisco Mejia, 44, and Luis Miguel Recio Fernandez, 29, both Dominican Republic nationals, alleging that they illegally reentered the United States after having been previously deported, United States Attorney Gretchen Shappert announced. Both men remain in federal custody pending their individual trials.
The indictment against Gomez alleges that he was previously removed from the United States on or about March 1, 2016, after having been convicted of a drug trafficking offense. The indictment against Fernandez alleges that on or about July 20, 2012, he too was previously removed from the United States after committed a drug trafficking offense.
Under federal law, both men face a maximum sentence of 20 years in prison and a $250,000 fine.
United States Attorney Shappert reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
These cases are being investigated by Homeland Security Investigations (HSI). They are being prosecuted by Assistant United States Attorney Everard E. Potter.
Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON - A Dominican national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Juan Laboy, 44, a Dominican national formerly residing in Lawrence, was sentenced by U.S. District Court Judge William G. Young to 27 months in prison and three years of supervised release. In June 2018, Laboy pleaded guilty to one count of illegal reentry of a deported alien.
Laboy, who, at the time of his arrest, was on federal supervised release for a 2016 illegal reentry conviction, has previously been deported five times: Oct. 18, 2006; Jan. 12, 2008; April 7, 2010; Dec. 3, 2013; and April 5, 2016.
On Nov. 14, 2017, law enforcement arrested Laboy and charged him with trafficking in cocaine. Laboy’s prints were obtained and found to match the prints in his Alien file. The cocaine trafficking charges are currently pending in Lawrence District Court.
Immediately following his June 2018 plea hearing before Judge Young, Laboy appeared before U.S. District Court Judge Allison D. Burroughs for a hearing related to violating his supervised release. Judge Burroughs found Laboy in violation of his supervised release and sentenced him to eight months in prison. Today’s sentence will be served consecutive to the eight months imposed in June.
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.
District Man Sentenced to Five Years in Prison for Federal Drug OffenseRead the Press Release
WASHINGTON – Manulito Chambliss, 47, of Washington, D.C., was sentenced today to five years in prison on a federal drug offense stemming from a traffic stop by police that led to the discovery of cocaine base in the car that he was driving, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Chambliss pled guilty in August 2018 in the U.S. District Court for the District of Columbia to unlawful possession with intent to distribute cocaine base. The plea, which was contingent upon the Court’s approval, calls for an agreed-upon sentence of five years in prison. The Honorable Thomas F. Hogan accepted the plea and sentenced Chambliss accordingly. Following his prison term, Chambliss will be placed on four years of supervised release.
According to the government’s evidence, on Dec. 23, 2017, at approximately 7 p.m., MPD officers on patrol in the 200 block of 19th Street SE spotted a silver Infiniti that had only one headlight running. Officers lost sight of the vehicle, but then located it nearby, stopped in the 1700 block of Bay Street SE. Chambliss, who was alone in the vehicle, began to drive it. Using lights and sirens, officers tried to pull Chambliss over, but he did not stop and kept driving off. Eventually Chambliss became stuck in traffic in the 1500 block of Benning Road NE and came to a stop. After officers removed him from the driver’s seat, they found 346 small zip lock bags, containing 44 grams of cocaine base, on the driver’s seat and on Chambliss’s person.
The case marks the fourth time that Chambliss has been convicted in the District of Columbia of a felony drug offense.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the case for the U.S. Attorney’s Office, including Assistant U.S. Attorneys C.B. Buente and Vincent Caputy, who prosecuted the matter.
Deming Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Christopher Hernandez Meza, 35, of Deming, N.M., pled guilty this afternoon in federal court in Las Cruces, N.M., to distributing child pornography. Based on his guilty plea, Meza faces a statutory mandatory minimum penalty of five years and a maximum of 20 years in prison. He also will be required to register as a sex offender after he completes his prison sentence.
Meza was arrested in May 2018, on a criminal complaint charging him with possessing and distributing child pornography from March 2018 through April 2018, in Luna County, N.M. According to the criminal complaint, the investigation leading to Meza’s arrest was initiated in March 2018, after an FBI agent who was working in an undercover capacity in Oklahoma signed into a publicly available peer-to-peer file-sharing network that was being used by individuals who were sharing child pornography images and videos. The agent learned that an IP Address and email address subscribed to Meza were being used to share child pornography.On May 3, 2018, the FBI executed a search warrant at Meza’s residence. While executing the search warrant, FBI agents seized a computer that contained more than a dozen video files and more than a hundred image files of child pornography.
During today’s proceedings, Meza pled guilty to a felony information charging him with distributing child pornography. In entering the guilty plea, Meza admitted that on March 27, 2018, he distributed child pornography by giving another person, who unbeknownst to Meza was an undercover law enforcement agent, access to a password protected online file folder, which contained numerous images of minors engaged in sexually explicit conduct.
Meza has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Las Cruces office of the FBI with assistance from the Deming Police Department and the Deming office of New Mexico State Probation. Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For information about Project Safe Childhood, please visit http://www.justice.gov/psc/. Individuals with information relating to suspected child predators and suspected child abuse are encouraged to contact the National Center for Missing and Exploited Children at 1-800-THE-LOST.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Convicted Felon Found Guilty in Brooklyn Federal Court of Conspiring to Sell Three Kilos of Heroin and Possession of a Loaded FirearmRead the Press Release
Earlier today, following a three day trial, a federal jury in Brooklyn returned a guilty verdict against Clyde Miller on charges of conspiring to distribute and possess with intent to distribute heroin, possessing a firearm during a drug trafficking crime and being a felon in possession of a firearm. Miller and others had agreed to sell three kilograms of heroin to an undercover police office for over $170,000. When sentenced by United States District Judge Margo K. Brodie, Miller faces a mandatory minimum sentence of 15 years’ imprisonment and maximum sentence of life imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the guilty verdict.
“As the jury found, Clyde Miller was armed with a gun when he showed up for a heroin deal at a hotel near JFK International Airport,” stated United States Attorney Donoghue. “Through the outstanding work of our prosecutors and law enforcement officers, a source for dangerous drugs was shut down and a deadly weapon was taken out of the hands of a convicted felon and off the street.” Mr. Donoghue expressed his grateful appreciation to the Broward County Sheriff’s Office in Florida for their assistance in the investigation.
“It is estimated that 70,000 people died as a result of drug abuse last year in the United States,” stated DEA Special Agent-in-Charge Hunt. “This conviction sends a message to traffickers that law enforcement is committed to bringing opioid traffickers to justice. I commend the agents and prosecutors on their hard work.”
Evidence presented at trial, including undercover recordings and physical surveillance, established that on April 17, 2017, Miller and his co-conspirators drove to the Hilton Hotel near JFK International Airport to complete the sale of three kilograms of heroin for more than $170,000. Unbeknownst to Miller, the purchaser of the heroin was an undercover police officer. At approximately 3:00 p.m., Miller and his co-conspirators arrived in the hotel parking lot in a 2013 white Dodge Durango. A co-conspirator approached the undercover officer and handed him a black bag, which contained a brick of heroin. DEA agents observing the transaction moved in and arrested Miller and his co-conspirators. A loaded .380-caliber semi-automatic handgun was found tucked in the back of Miller’s waistband. Miller had previously been convicted of a felony.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Temidayo Aganga-Williams is in charge of the prosecution.
The Defendant:
CLYDE MILLER (also known as “Quan Miller”)
Age: 41
Oil City, PennsylvaniaE.D.N.Y. Docket No. 17-CR-415 (S-1) (MKB)
Columbus, Mississippi Vice Lord Sentenced to Statutory MaximumRead the Press Release
OXFORD – On September 13, 2018, Darmarcus Fisher, a Vice Lord gang member in Columbus, Mississippi, was sentenced to the statutory maximum of ten years in federal prison for his role in two gang-related shootings, which occurred on March 7, 2016. The melee left one gang member hospitalized and resulted in bullets striking a bystander’s vehicle and residence.
Fisher previously pled guilty to being a felon in possession of ammunition, which was discharged from a firearm in March of 2016. On Thursday, Fisher was sentenced by U.S. District Judge Michael P. Mills in the Northern Judicial District of Mississippi to ten (10) years imprisonment. Fisher’s incarceration will be followed by three years of supervised release.
The sentencing was the culmination of a joint Federal and State investigation into multiple shootings in 2016, which occurred between rival gang members of the Vice Lords and the Black Gangster Disciples in Columbus, Mississippi. Multiple arrests have been made resulting in a substantial reduction in violent crime in Columbus, Mississippi.
William C. Lamar, U.S. Attorney for the Northern District of Mississippi and Joseph Frank, Supervisory Special Agent for the Oxford Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, made the announcement.
“We are making our neighborhoods safe again by removing violent offenders from our communities. Through the combined efforts of our Project Safe Neighborhoods Task Force and the Organized Crime Drug Enforcement Task Force, federal, state, and local agents and officers will work together to make and keep our neighborhoods safe,” remarked U.S. Attorney Lamar.
These charges were the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a federal multi-agency, multi-jurisdictional task force that provides supplemental funding to federal and state agencies involved in the identification, investigation, and prosecution of violent organizations and pursuant to the Project Safe Neighborhoods anti-violent crime initiative. Several agencies were crucial to this investigation, including the ATF, the Columbus Police Department, the Lowndes County Sheriff’s Department, and the District Attorney’s Office for the Sixteenth Circuit Court of Mississippi. The government was represented by Assistant U.S. Attorney Clyde McGee of the U.S. Attorney’s Office in Oxford, Mississippi.
Columbus Man Sentenced to 15 Years in Prison for Dealing Lethal Heroin Fentanyl MixRead the Press Release
COLUMBUS, Ohio – Richard R. Edwards, 29, of Columbus, was sentenced in U.S. District Court to 180 months in prison for distributing heroin and fentanyl that resulted in the death or serious bodily injury of another.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), Franklin County Prosecutor Ron O’Brien, Franklin County Sheriff Dallas Baldwin and other members of the Sheriff’s Office’s Heroin Overdose Prevention & Education (HOPE) Task Force announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, Edwards admitted that his distribution of heroin and fentanyl led to a non-fatal overdose of a Columbus man in August 2016, and a fatal overdose of a Columbus woman in December 2016.
Edwards was arrested in March 2017 and has remained in custody since. He pleaded guilty to distribution of heroin in August 2017.
“Drug dealers like Edwards who traffic in fentanyl deal death,” U.S. Attorney Glassman said. “I want them to know that they face lengthy terms in federal prison for that conduct. Trafficking in deadly opioids must stop.”
“This defendant's conviction and subsequent significant prison term demonstrates HSI's unrelenting resolve to bring to justice those responsible for distributing this lethal poison in our communities,” said Steve Francis, Special Agent in Charge with Homeland Security Investigations. “HSI will continue our close collaboration with all members of the Ohio law enforcement community, including the Franklin County Sheriff’s Office who initiated this case, to combat this deadly scourge.”
U.S. Attorney Glassman commended the investigation of this case by HSI and HOPE Task Force officers, as well as Deputy Criminal Chief Michael J. Hunter and Assistant United States Attorney Kelly A. Norris, who are representing the United States in this case.
Established in 2016, the Heroin Overdose Prevention & Education Task Force was created as a restructuring of the Franklin County Drug Task Force. Experienced narcotics and homicide detectives working on the HOPE Task Force are treating opiate overdose scenes as crime scenes, investigating the source of the supply that caused the overdose. This case represents the first federal prosecution of a “death-resulting” case in Columbus that stemmed from a joint investigation with the HOPE Task Force.
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California Man Charged in a Federal Complaint in Connection with a Traffic StopRead the Press Release
St. Louis, MO – Jonathan Bobadilla-Soto, 26, of Adelanto, California, was charged in a federal criminal complaint regarding a traffic stop which resulted in the seizure of approximately 34 pounds of ICE (crystal methamphetamine).
According to the affidavit of the complaint, on September 12, 2018, Task Force Officers stopped a white colored Chevrolet Traverse SUV travelling westbound on Interstate 70 in Foristell, Missouri, for a traffic violation of failing to signal when changing lanes and for failing to stop at a red light. The driver, Jonathan Bobadilla-Soto, and front seat passenger were informed by the officers the reason for the stop and began to converse with Bobadilla-Soto about his purpose of his travel. Officers asked Bobadilla-Soto for consent to search the vehicle for suspected illegal narcotics or large bulk currency, which he granted.
After a brief search of the vehicle and while opening the rear SUV hatch by an officer, the hatch would not automatically stay up and came crashing down on the officer. After the officer became suspicious that the hatch was too heavy to remain in the open position, he observed a small gap in the plastic interior molding of the hatch. After dismantling the rear SUV hatch, officers discovered 17 individually wrapped bundles of ICE, placed inside the vehicle’s natural void. A continued search revealed five (5) individually wrapped bundles in the rear passenger side quarter panel, six (6) individually wrapped bundles in the rear ceiling compartment and six (6) individually wrapped bundles in the rear driver side quarter panel which all contained ICE.
Bobadilla-Soto was charged with one felony count of Possession with Intent to Distribute ICE. The United States Attorney requested that he be detained pending trial.
As is always the case, charges set forth in the complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
This case is being investigated by the St. Charles County Police Department and the Drug Enforcement Administration. Assistant United States Attorney Beth Orwick is handling the case for the U.S. Attorney’s Office.
Business Executive Pleads Guilty to Foreign Bribery Charge in Connection with Venezuelan Bribery SchemeRead the Press Release
HOUSTON – A former manager of a U.S.-based logistics and freight forwarding company pleaded guilty to a foreign bribery charge today for his role in a scheme to corruptly secure contracts and contract extensions from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA). The guilty plea of the bribed foreign official was also unsealed today.
U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Juan Carlos Castillo Rincon (Castillo), 55, of Conroe, previously of Miami, Florida, pleaded guilty before U.S. Magistrate Judge Nancy K. Johnson of the Southern District of Texas in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA). Castillo is scheduled to be sentenced Feb. 21, 2019 by U.S. District Judge Gray H. Miller of the Southern District of Texas.
Judge Johnson also unsealed the guilty plea of Jose Orlando Camacho (Camacho), 46, of Miami, Florida, previously of Katy, the PDVSA official whom Castillo bribed. In July 2017, Camacho pleaded guilty under seal before Judge Miller to conspiracy to commit money laundering. Camacho is scheduled to be sentenced Feb. 21, 2019 by Judge Miller.
“These guilty pleas reflect the hard work of agents and investigators and mark another step in the joint effort to combat foreign corruption,” said U.S. Attorney Patrick. “Our office will continue to prosecute those who bribe foreign officials or use our financial networks to launder the proceeds of these bribes.”
“Corruption undermines the rule of law, tilts the playing field away from law-abiding businesses, and exposes our financial system to the distorting effects of illicit cash flows,” said Assistant Attorney General Benczkowski. “The guilty pleas announced today are the latest in a series of actions arising out of an ongoing investigation of bribery at PDVSA. The Department will continue to combat corruption wherever we find it.”
“Foreign bribery schemes like this pose a significant threat to the public trust and fair trade practices,” said HSI Houston Special Agent in Charge Dawson. “Today’s pleas are a step in the right direction, but we will continue to aggressively investigate individuals and corporations who violate the FCPA to ensure a fair and equal playing field for U.S. companies and consumers.”
Castillo was arrested in Miami on April 19, after a federal grand jury returned a five-count indictment against him. According to admissions made in connection with Castillo’s plea, beginning in or around 2011 and continuing through at least 2013, Castillo, a manager at a Houston-based logistics and freight forwarding company, conspired with others to bribe a PDVSA official in exchange for the official providing assistance in connection with the company’s business with PDVSA. In exchange for bribe payments, the PDVSA official assisted the company in obtaining PDVSA contracts, contract extensions and favorable contract terms; provided Castillo with inside information concerning the PDVSA bidding process; and supported the company in internal PDVSA meetings regarding purchasing decisions.
As part of his guilty plea, Camacho admitted that while employed by PDVSA or its wholly owned subsidiaries or affiliates, he accepted bribes from Castillo and the logistics and freight forwarding company for which Castillo was a manager in exchange for taking certain actions to assist the company in its business with PDVSA. Camacho also admitted he conspired with Castillo to launder the proceeds of the bribery scheme.
As part of their plea agreements, both Castillo and Camacho have agreed to forfeit the proceeds of their criminal activity.
With Castillo’s plea today and the unsealing of Camacho’s plea, the Justice Department has announced charges against 18 individuals, 14 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. The HSI Houston Field Office is conducting the ongoing investigation with assistance from HSI in Boston and from IRS Criminal Investigation. Assistant U.S. Attorneys John P. Pearson and Robert S. Johnson and Trial Attorneys Jeremy R. Sanders and Sarah E. Edwards of the Criminal Division’s Fraud Section are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Cayman Islands’ Office of the Director of Public Prosecutions also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa
Business Executive Pleads Guilty to Foreign Bribery Charge in Connection with Venezuelan Bribery SchemeRead the Press Release
A former manager of a U.S.-based logistics and freight forwarding company pleaded guilty to a foreign bribery charge today for his role in a scheme to corruptly secure contracts and contract extensions from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA). The guilty plea of the foreign official who was bribed was also unsealed today.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Juan Carlos Castillo Rincon (Castillo), 55, of Conroe, Texas, previously of Miami, Florida, pleaded guilty before U.S. Magistrate Judge Nancy K. Johnson of the Southern District of Texas in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA). Castillo is scheduled to be sentenced on Feb. 21, 2019 by U.S. District Judge Gray H. Miller of the Southern District of Texas.
Judge Johnson also unsealed the guilty plea of Jose Orlando Camacho (Camacho), 46, of Miami, Florida, previously of Katy, Texas, the PDVSA official whom Castillo bribed. In July 2017, Camacho pleaded guilty under seal before Judge Miller to conspiracy to commit money laundering. Camacho is also scheduled to be sentenced on Feb. 21, 2019 by Judge Miller.
“Corruption undermines the rule of law, tilts the playing field away from law-abiding businesses, and exposes our financial system to the distorting effects of illicit cash flows,” said Assistant Attorney General Benczkowski. “The guilty pleas announced today are the latest in a series of actions arising out of an ongoing investigation of bribery at PDVSA. The Department will continue to combat corruption wherever we find it.”
“These guilty pleas reflect the hard work of agents and investigators and mark another step in the joint effort to combat foreign corruption,” said U.S. Attorney Patrick. “Our office will continue to prosecute those who bribe foreign officials or use our financial networks to launder the proceeds of these bribes.”
“Foreign bribery schemes like this pose a significant threat to the public trust and fair trade practices,” said HSI Houston Special Agent in Charge Dawson. “Today’s pleas are a step in the right direction, but we will continue to aggressively investigate individuals and corporations who violate the FCPA to ensure a fair and equal playing field for U.S. companies and consumers.”
Castillo was arrested in Miami on April 19, after a federal grand jury returned a five-count indictment against him. According to admissions made in connection with Castillo’s plea, beginning in or around 2011 and continuing through at least 2013, Castillo, a manager at a Houston-based logistics and freight forwarding company, conspired with others to bribe a PDVSA official in exchange for the official providing assistance in connection with the company’s business with PDVSA. In exchange for bribe payments, the PDVSA official assisted the company in obtaining PDVSA contracts, contract extensions and favorable contract terms; provided Castillo with inside information concerning the PDVSA bidding process; and supported the company in internal PDVSA meetings regarding purchasing decisions.
As part of his guilty plea, Camacho admitted that while employed by PDVSA or its wholly owned subsidiaries or affiliates, he accepted bribes from Castillo and the logistics and freight forwarding company for which Castillo was a manager in exchange for taking certain actions to assist the company in its business with PDVSA. Camacho also admitted that he conspired with Castillo to launder the proceeds of the bribery scheme.
As part of their plea agreements, both Castillo and Camacho have agreed to forfeit the proceeds of their criminal activity.
With Castillo’s plea today and the unsealing of Camacho’s plea, the Justice Department has announced charges against 18 individuals, 14 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. The HSI Houston Field Office is conducting the ongoing investigation, with assistance from HSI in Boston and from IRS Criminal Investigation. Trial Attorneys Jeremy R. Sanders and Sarah E. Edwards of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John P. Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Cayman Islands’ Office of the Director of Public Prosecutions also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Bureau of Corrections Detainees Indicted for having Illegal Contraband in PrisonRead the Press Release
St. Thomas, USVI – A federal Grand Jury today returned three separate indictments against K’Moi Corraspe, 24, Michael Hendrickson, 27, and Gamba Potter, 33, each for allegedly possessing illegal contraband in prison, United States Attorney Gretchen Shappert announced. All three men remain in custody at the Bureau of Corrections where they await trial on unrelated local charges.
The indictment against Corraspe charges him with possessing a cell phone, a screwdriver and a cigarette lighter while detained at the Virgin Islands Bureau of Corrections on St. Thomas. Hendrickson’s and Potter’s indictments allege that each possessed cell phones while they were detained at the Virgin Islands Bureau of Corrections on St. Thomas.
Under federal law, Corraspe faces a maximum sentence of five years in prison and a $250,000 fine. Potter and Hendrickson each face one year in prison with fines of $250,000.
United States Attorney Shappert reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty
The Federal Bureau of Investigations, the Virgin Islands Police Department, and the Virgin Islands Bureau of Corrections are investigating these cases. They are being prosecuted by Assistant United States Attorney Everard E. Potter.
Buffalo Man Sentenced to Prison for Tax EvasionRead the Press Release
A Buffalo, New York, man who owned and operated a debt collection business was sentenced to 37 months in prison today for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney James P. Kennedy Jr. for the Western District of New York.
According to documents and information provided to the court, from April 2010 through October 2013, Dorian Wills operated a debt collection business under a variety of different names. The business engaged in illegal collection practices, including making threatening and harassing phone calls and collecting on debt that did not exist or debt to which the collection companies did not have title. To conceal his involvement in the business, Wills directed two individuals to incorporate companies in their names in Georgia and Ohio and to open bank accounts in the names of those companies. Wills then used these corporate entities to operate his debt collection business.
During 2011 through 2013, Wills earned significant income from his debt collection activities. However, Wills sought to hide his income and evade assessment of his income tax liabilities by using nominees to hide his ownership of his debt collection businesses and filing false tax returns. Wills also did not file tax returns at all for 2011 and 2013. In total, Wills’ conduct caused a tax loss of over $1.2 million.
In addition to the term of imprisonment, U.S. District Judge Elizabeth A. Wolford ordered Wills to serve two years of supervised release and pay $1,466,330.05 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Jason M. Scheff and Thomas F. Koelbl of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Western District of New York and Assistant U.S. Attorney Marie P. Grisanti for their support during the investigation and prosecution of this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.