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19 October 2018
Buffalo Man Sentenced on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Larry Smith, Jr., 40, of Buffalo, NY, who was convicted of possession with intent to distribute, and distribution of, 28 grams or more of crack cocaine, was sentenced to serve 63 months in prison by Chief U.S District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that between June 9 and July 27, 2017, the defendant sold crack cocaine to an individual working with the Drug Enforcement Administration on four occasions. In addition, on October 5, 2017, DEA agents recovered approximately 195 grams of cocaine in Smith’s residence at 56 Burgard Place in Buffalo.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
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Buffalo Man Sentenced for Selling Cocaine and FentanylRead 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 Rashawn Brown, 31, of Buffalo, NY, who was convicted of possession with intent to distribute, and distribution of, crack cocaine and fentanyl, was sentenced to serve 51 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that on four occasions between March 31, 2017, and April 24, 2017, the defendant sold crack cocaine to an undercover officer working with the Lackawanna Police Department. On one occasion, Brown also sold both fentanyl and crack cocaine to the undercover officer.
The defendant was previously convicted in September 2012 in Erie County Court of Criminal Possession of a Controlled Substance in the Fifth Degree, a felony.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, and the Lackawanna Police Department, under the direction of Chief James Michel.
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Buffalo Man Pleads Guilty to Heroin ChargeRead 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 a Rashawn Crule, 42, of Buffalo, NY, pleaded guilty to possession with intent to distribute 100 grams or more of heroin before U.S. Magistrate Judge H. Kenneth Schroeder. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life and a $8,000,000 fine.
Assistant U.S. Attorney Meghan Tokash, who is handling the case, stated that between June 2013 and September 2015, the defendant possessed with intent to distribute and distributed various illegal narcotics including heroin, fentanyl, crack cocaine and cocaine. Crule also maintained a premises at 98 Gillette Avenue in Buffalo for the purpose of manufacturing, distributing and using these illegal narcotics. The defendant also allegedly possessed a 9mm handgun.
Crule made two sales of heroin to an individual working with the DEA. On November 2, 2015, investigators executed a search warrant and seized $74,878 in U.S. currency and a 14 karat white gold necklace form the defendant’s residence at 22 Homer Avenue in Buffalo, which represented drug trafficking proceeds. A second search warrant was executed at 98 Gillette Street in Buffalo where investigators seized heroin, fentanyl, crack cocaine, and cocaine. A firearm and 11 rounds of ammunition were also seized.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Detail Commander Mary Clark and Lieutenant Kevin Reyes, CNET West Commander; and the U.S. Customs and Border Protection, Air and Marine Unit, under the direction of Brian Manaher, Director, Marine Operations.
Sentencing will be scheduled at a later date.
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Buena Vista Man Sentenced on Federal Child Pornography ChargeRead the Press Release
Lynchburg, VIRGINIA – A 32-year-old Buena Vista man, who was studying to become a youth pastor, was sentenced yesterday to 78 months in federal prison after pleading guilty earlier this year to possession of child pornography and attempting to send obscene material to a child under 16 years of age, United States Attorney Thomas T. Cullen announced.
Christopher Collins, 32, pleaded guilty on May 16, 2018, to offenses relating to his communications with an undercover officer posing as a 13-year old girl and the recovery from Collins’ digital devices of child pornography images. In addition to 78 months of incarceration, Collins was also sentenced yesterday to five years of supervised release and will be required to register as a sex offender upon his release from prison.
“The Department of Justice is committed to working with our federal, state, and local law-enforcement partners to prosecute individuals who exploit children through, among other reprehensible acts, child pornography,” U.S. Attorney Cullen stated today. “Each and every time these types of images are shared online, children are victimized. Accordingly, these cases are among the most important that we do as federal prosecutors, and we will make every effort to vindicate the interests of these vulnerable victims and protect them from further harm.”
In November 2016, the defendant, who used the screen name “NavyGuy4Yng” contacted an undercover officer. He sent pictures of his penis and a masturbation video to the officer and told the officer that his screen name on another website was “PastorGreg.” In February 2017, investigators with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Rockbridge County Sheriff’s Office and the Office of the Virginia Attorney General, executed a federal search warrant at Collins’ Rockbridge County residence. During the on-scene investigation, officials seized digital devices and interviewed Collins. During the interview, Collins made various admissions, including the fact that he liked to roleplay online, that he communicated with girls who claimed they were between the ages of 13 and 15 years old, and that he transmitted videos and photographs of himself nude. In addition, investigators found child pornography images on digital devices seized from Collins’ residence.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Rockbridge County Sheriff’s Office and the Office of the Virginia Attorney General. Assistant United States Attorney Nancy S. Healey prosecuted the case for the United States.
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 exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Broward County Teacher Pleads Guilty to Possessing Child PornographyRead the Press Release
A Broward county teacher pled guilty yesterday to possessing child pornography.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Gregg Donshik, 47, of Hollywood, Florida, pled guilty to one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B). Sentencing is scheduled for December 21, 2018, before U.S. District Judge Beth Bloom. Donshik is facing a maximum statutory sentence of 20 years in prison.
According to court documents, in March 2018, HSI Miami received information from Interpol regarding internet users in the U.S. who had created accounts and purchased child pornography on the dark web. In relation to this investigation, federal law enforcement executed a search warrant at Donshik’s residence and recovered several computers and other electronic media, containing images and videos of children being sexually abused. At the time of his arrest, Donshik was employed as a teacher. However, evidence indicated he accessed and possessed the child pornography from his home.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ICE-HSI in this matter and thanked the South Florida Internet Crimes Against Children Task Force for their assistance. The case is being prosecuted by Assistant U.S. Attorney Francis Viamontes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Brooklyn Man Sentenced for Selling CocaineRead 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 Gilbert Guzman, 42, of Brooklyn, NY, who was convicted of possession with intent to distribute, and distribution of, cocaine, was sentenced to three years probation by U.S. District Judge Richard J. Arcara to possession with intent to distribute, and distribution of, cocaine.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that between May 2017 and October 18, 2017, the defendant conspired with co-defendants Stevie Alejandro, Aaron Hill, Cleophus Dentmond, and Catherine Ramos, and others, to distribute cocaine in the Lovejoy District.
On August 16, 2017, Guzman sold cocaine to an undercover police officer. Stevie Alejandro, who operated the Barberians Barber Shop at 1132 East Lovejoy Street, which is located directly across from Buffalo Public School #43, the Lovejoy Discovery School, provided the defendant with the cocaine for this transaction.
All five defendants have been convicted in this case.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Cheektowaga Police Department, under the direction of Chief David Zak; and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
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Boston Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for failure to register as a sex offender.
Lance Pona, 27, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year and one day in prison and five years of supervised release. In June 2018, Pona pleaded guilty to one count of failure to register as a sex offender. Pona has been in custody since he was arrested and charged in April 2018.
Pona is required to register as a sex offender in Massachusetts based on a Colorado state court conviction for unlawful sexual contact in 2009. Following his imprisonment for that conviction, Pona left Colorado for Massachusetts. Despite living in the Boston area for approximately five years, Pona failed to report his presence to the authorities.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Berkeley County residents arraigned on drug distribution chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Martinsburg, West Virginia, residents were arraigned today in federal court after being indicted on August 14, 2018 by a federal grand jury sitting in Martinsburg on drug distribution charges, United States Attorney Bill Powell announced.
Ellis Reginald Fennell, also known as “Z,” age 30, and Samione Monay Jones, age 31, are each charged with one count of “Conspiracy to Distribute Cocaine Base ‘Crack’,” and two counts of “Aiding and Abetting Distribution of Cocaine Base ‘Crack’.” Fennell and Jones are accused of selling “crack” cocaine in May 2017 in Berkeley County and elsewhere.
Fennell and Jones each face up to 20 years incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecutor’s Office, is prosecuting the cases on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Baton Rouge Man Pleads Guilty to Illegal Possession of FirearmsRead the Press Release
United States Attorney Brandon J. Fremin announced today that, LESTER DESMOULIN, age 31, of Baton Rouge, Louisiana, pled guilty to one count of possession of firearms by a convicted felon. As a result of his conviction, DESMOULIN faces a significant term of imprisonment, fine, and a period of supervised release.
In the hearing before Chief U.S. District Judge Shelly D. Dick, DESMOULIN pled guilty to possession of a Glock 9mm semiautomatic pistol after having been convicted of three felony offenses between 2006 and 2016. His prior offenses include aggravated assault with a firearm and possession of controlled substances on two separate occasions, with all three resulting in felony convictions in the 19th Judicial District Court for the Parish of East Baton Rouge.
During the plea hearing DESMOULIN admitted that on July 31, 2017, defendant’s friend, Terrance Thornton, had hidden a Glock 9mm semi-automatic pistol at a private residence in Baton Rouge just prior to being arrested that day. Shortly after his arrest, Thornton contacted DESMOULIN via a jail call and directed DESMOULIN to go to the residence where he had earlier hidden the pistol and retrieve it. DESMOULIN then went to the residence in Baton Rouge and took possession of the Glock pistol. Thornton had previously pled guilty to being a convicted felon in possession of a firearm and, on October 10, 2018, was sentenced by U.S. District Judge John W. deGravelles to serve 10 years in federal prison.
U.S. Attorney Fremin stated, “The investigation of this offense, which involved a collective effort by several of our Violent Crime Strike Force partners, and the resulting conviction of DESMOULIN, highlights our effort to pursue offenders who have previously committed serious crimes and continue to engage in such conduct. Our collective efforts also reflect our continuing commitment to keep our community safe.”
“ATF, along with our state, local, and federal partners, will continue to focus our efforts on the disruption of violent crime in our community through the arrest and prosecution of Lester DESMOULIN and other violent criminals just like him”’ said ATF New Orleans Special Agent in Charge Dana Nichols. “Keeping our communities safe is a priority for all of law enforcement.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department, with substantial assistance from the Louisiana State Police Crime Laboratory and Fugitive Task Force. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Baltimore Man Pleads Guilty to Attempting to Rob Undercover ATF Special Agents at Gunpoint During a Purported Drug DealRead the Press Release
Baltimore, Maryland – Donte Smith, age 33, of Baltimore, pleaded guilty today to assault of a federal officer and brandishing a firearm in the course of a crime of violence, in connection with the May 26, 2017, assault on two undercover Special Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
In a separate case, U.S. District Judge George L. Russell, III sentenced Sean Lloyd, age 26, of Baltimore, to seven years in federal prison, followed by three years of supervised release, for possession of a loaded firearm in furtherance of a drug trafficking crime. There is no parole in the federal system.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the ATF Baltimore Field Division; and Interim Police Commissioner Gary Tuggle.
“These cases highlight the connection between drug trafficking and gun violence. Both defendants’ gun crimes arose from drug trafficking—one to rob drug customers, and the other to protect his drug dealing. Unfortunately, in Baltimore drug dealers bring violence into their communities every day. With our law enforcement partners, we are targeting drug dealers to get drugs and guns off our streets,” said United States Attorney Robert K. Hur. “The undercover ATF agents, like all the law enforcement officers that work to identify and disrupt drug dealers, put their lives on the line every day. We are grateful for their service and sacrifice.”
“We are thankful every day that our dedicated Special Agents were unharmed in this attempted robbery,” said ATF Baltimore Special Agent in Charge Cekada. “ATF focuses our efforts in Baltimore on drug trafficking crews that use firearms to maintain and expand their turf. Special Agents risk their personal safety each time they infiltrate a criminal organization, yet they do this because they know the importance of their mission to protect the community from these violent criminals.”
DONTE SMITH PLEA
According to Smith’s plea agreement, on May 26, 2017, during an ATF undercover operation, Smith and his co-defendant, Menard Hazelwood, attempted to rob two ATF undercover Special Agents (UCs), who were working with a confidential informant (CI) to purchase $2,000 worth of heroin from a known heroin dealer. The UCs and the CI had picked up the heroin dealer, with one UC driving and the other UC in the front passenger seat, then drove to a location in West Baltimore to meet with the dealer’s supplier. The dealer got out of the car and told the CI and the UCs to wait; Smith and Hazelwood immediately walked up to the vehicle. Smith asked the UCs for a light and Hazelwood took advantage of the distraction and pointed a gun at the UC in the passenger seat. Smith then pointed a silver revolver at the other UC. Smith and Hazelwood demanded money. The UCs told Smith and Hazelwood, who continued to hold them at gunpoint, that there was cash in the vehicle. The UCs then gave the distress signal to the covert ATF team that was monitoring the operation. As the covert team arrived on the scene, the agents ordered Smith and Hazelwood to put their hands up. Smith fled, and the responding ATF Special Agents fired their service weapons, striking Smith. Hazelwood also broke away and ran to a nearby car, but was not able to get into the car. Special Agents arrested him at the scene.
Agents recovered the .44-caliber revolver brandished by Smith during the robbery, but did not recover the gun used by Hazelwood. Smith and Hazelwood admitted that they each participated in the robbery, but did not know that the undercover Special Agents were federal agents at the time of the robbery.
Smith and the government have agreed that if the Court accepts the plea agreements, Smith will be sentenced to between seven and 15 years in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for March 29, 2018 at 11:00 a.m. Menard Hazelwood, age 29, of Baltimore, previously pleaded guilty to the same charges and is scheduled to be sentenced on March 29, 2019 at 2:00 p.m.
SEAN LLOYD SENTENCINGAccording to Lloyd’s plea agreement, on January 9, 2018, Lloyd was seen on Baltimore Police Department (BPD) surveillance cameras engaging in a hand-to-hand drug sale in the 2500 block of East Biddle Street in Baltimore. Shortly thereafter, BPD officers stopped Lloyd inside a nearby liquor store. Officers recovered a plastic bag containing three gel capsules of heroin; seven plastic containers of crack cocaine; and a loaded gun from Lloyd. As detailed in his plea, Lloyd had the gun for protection while he was dealing drugs.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the ATF for its work in both investigations and the Baltimore Police Department for its work in the Lloyd case. Mr. Hur thanked Assistant U.S. Attorney Patricia C. McLane, who is prosecuting the Smith case, and Assistant U.S. Attorney Matthew DellaBetta, who prosecuted the Lloyd case.
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Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Dylan Robert Davison, 27, of Loxley, Alabama, was sentenced today for using, carrying or possessing a firearm during or in relation to a drug trafficking felony. Court documents reflect that Davison was stopped by Elberta police officers on Wortel Road near Highway 98 in Baldwin County, Alabama, for making an illegal U-turn. In the search of his vehicle, officers found a gun and several different types of drugs. Davison admitted after being advised of his rights that the items were his. He pled guilty to the gun charge in federal court on June 14, 2018.
United States District Court Judge Kristi K. Dubose sentenced Davison to 5 years imprisonment, to be followed by a five year term of supervised release. She ordered that Davison will undergo testing and treatment for substance abuse in prison and while under supervision. She ordered that he pay the $100 special mandatory assessment, but did not impose a fine.
The case was investigated by the Elberta Police Department and the FBI Safe Streets Task Force. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.
Acting Assistant Attorney General Jeffrey H. Wood Delivers Keynote Speech at the 26th Fall Conference of the American Bar Association’s Environment, Energy, and Resources SectionRead the Press Release
Remarks as Prepared for Delivery
Thank you for that kind introduction and thank you to the ABA Section of Environment, Energy, and Resources (SEER) for the honor of joining you this morning as a keynote speaker. Let me also recognize this year’s conference chair, Juge Gregg, who has done a remarkable job coordinating SEER’s 26th Annual Fall Conference.
Throughout my sixteen years of law practice, I have benefitted from many of this Section’s conferences and the excellent journals and publications produced by your members. A copy of the Spring 2004 edition of the Natural Resources & Environment Magazine, entitled “Enforcement and Compliance,” sits on my coffee table at Main Justice. I always appreciated that this Section provides both senior experienced attorneys as well as recent law graduates an opportunity to put their ideas and legal analyses out there for consideration among the nation’s environmental lawyers. My article – about state enforcement barring environmental citizen suits – is on pages 57 to 61 of the Spring 2004 edition. I had just graduated law school one year earlier, and I co-wrote the article with a cherished former colleague, Tripp Head, since lost to cancer, who was active in this Section and taught me a great deal about writing and lawyering.
If you glance through this edition, you will also see articles from others in this respected Section, including former Assistant Attorney General John Cruden and Deputy AAG Bruce Gelber, who co-authored an article on pages 10 to 18 about federal environmental enforcement, not to mention the article on pages 27 to 31 co-authored by Karen Mignone, Chair-Elect of the Section. Year after year, ABA SEER makes valuable contributions to the practice of environmental law across our nation. Thank you to all who contribute to make the Section so successful in its mission.
Introduction to ENRD
Since January 20, 2017, I have been honored to serve as the Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. About to celebrate its 110th birthday next year, our historic division is a powerful force for good in our country. It is our Division’s responsibility to enforce the nation’s environmental laws and to defend good governance by federal agencies engaged in management of natural resources, environmental protection, and land acquisition. We also have a vital role in Indian Country as well. With almost 600 attorneys, paralegals, and staff, and with a docket of more than 6,000 cases and matters, ENRD is engaged every day, all across the country, in pursuit of our important mission under law.
We have continued to look forward to the arrival of Jeff Clark as our next Assistant Attorney General. After a longer wait than was deserved, we were very pleased to see the Senate confirm Jeff last week. He is an exceptional lawyer and will do a great job as the leader of our Division. He served previously as a Deputy AAG during the tenure of AAG Tom Sansonetti, an outstanding leader of our historic Division in his own right. We currently anticipate Jeff Clark’s tenure to officially begin on November 1, 2018, at which point I will shed the “Acting” AAG title and continue serving in the Division as the Principal Deputy Assistant Attorney General.
In our front office, we are fortunate to be joined by our current team of Deputy AAGs: Bruce Gelber; Jean Williams; Eric Grant; and Jonathan Brightbill. Justin Heminger, an excellent attorney from our Environmental Defense Section, currently serves as Chief of Staff. We have a strong front office team focused on fulfilling the critical mission of ENRD. Jeff Clark’s arrival will undoubtedly make our team even stronger.
Our Division has been busy over the last 21 months. This morning, I want to share with you some insights into what we have been doing, and how we are approaching our civil and criminal enforcement matters and our defense of agency actions, including key priorities of this Administration. I’ll conclude with some remarks about our Supreme Court practice, including the mandamus petition we filed just yesterday in the Juliana litigation, described by some news reports as the “kids’ climate case,” but perhaps more appropriately should be called the “Jim Hansen case.”
ENRD and the Rule of Law
Under the leadership of Attorney General Jeff Sessions and Deputy Attorney General Rod Rosenstein, one overriding principle has governed our work: the impartial rule of law. This principle is reflected in virtually every speech they deliver, and it undergirds every decision they make. Recently, Attorney General Sessions framed the principle this way: “No greater good can be done for the overall health and well-being of our Republic, than preserving and strengthening the impartial rule of law.” He also framed it this way: “The rule of law is more than an outcome. It is a formal process that creates an opportunity for a jury or a court to produce a just outcome—and a just outcome may not be the politically popular one.”
Last week, I was honored to join the Attorney General in London where he delivered a major international speech about our nation’s efforts to combat the illegal trade in protected wildlife. He expressed our country’s longstanding view that the poaching and trafficking of protected wildlife is a “threat to good governance, a threat to the rule of law, and a challenge to our stewardship responsibilities for this good earth.” Again, he emphasized, “It is the rule of law that forms the foundation for liberty, safety, and prosperity.” Absent good institutions and the rule of law, which we are beyond blessed to have inherited in this great nation, we are utterly helpless in the fight to ensure clean air, clean water, clean land, and the conservation of natural resources.
Likewise, Deputy Attorney General Rosenstein recently reinforced that point when he was the keynote speaker at our Division’s annual awards ceremony in September, where we recognized the exceptional work of attorneys and support staff from across the Division as well as our agency partners. DAG Rosenstein reminded us that, in his words:
Government lawyers are obligated to advocate for the truth. Only we are accountable for investigating and disclosing evidence of innocence. Only we are accountable for refraining from advocating arguments that we know to be wrong. That is because our duty is to the truth and not a particular outcome in any case. That is what the rule of law is all about.
Enforcement and the Rule of Law
At ENRD, this fundamental principle of the impartial rule of law is a touchstone for our own work. Earlier this year, I issued a directive to our civil and criminal enforcement lawyers identifying central principles – the impartial rule of law, first among them – that should govern our environmental enforcement activities. We also sought to highlight other principles like cooperative federalism, exercising pragmatic decision-making, and protecting taxpayers and the public fisc, and we identified our current enforcement priorities. This directive, which the Attorney General reviewed and approved, is available for review on our website.
When the new Administration took office, there were probably some who mistakenly believed that we would be soft on enforcement. Twenty-one months later, I suspect that there are fewer who have that belief. Since January of 2017, our Division has recovered more than $1 billion in injunctive relief under Superfund to require cleanups of contaminated sites across the nation; obtained record-setting civil penalties in cases involving illegal dredging of protected streams and wetlands; and sought a record-sized civil fine for oil spills at land-based oil production facilities. These are just a few examples of our enforcement successes.
In fact, in the twelve month period from January 20, 2017 to January 20, 2018, my first year as Acting AAG, we secured $1.57 billion in civil penalties – our second best year over the past twenty years. Some may point out that much of that penalty comes from the Clean Air Act defeat device case against Volkswagen, which we concluded in 2017. But when you take out that penalty, ENRD still recovered $121 million in civil penalties, which by itself is higher than the civil penalties that we recovered over the same period in twelve of the last twenty years.
One trend that we have observed in our enforcement work is that we are initiating fewer cases per year than we used to file. But that is not a recent change – it is a long-term trend that you can see playing out over the past two decades. Many factors have contributed to this. For example, in many of our recent cases, we address violations of federal law at multiple facilities in the same settlement. Thus, in August of this year, we settled with a glass manufacturing company to resolve Clean Air Act violations at all six of the company’s facilities located in six different states. Rule of law does not mean weak enforcement – it means vigorous but even-handed enforcement that is consistent with a sound interpretation of applicable statutes and regulations.
Since I became Acting AAG, our Division also has pursued a broad range of criminal cases. Our prosecutors have convicted more than 30 defendants for wildlife trafficking crimes, with another 25 charged during that period. This is on top of significant numbers of additional defendants who have been charged and convicted in wildlife crimes cases brought by U.S. Attorney Offices across our country.
Earlier this year, our Division’s prosecutors obtained a significant prison sentence for a New York defendant found guilty of smuggling parts taken from endangered African lions and tigers. In another case this year, a California resident was sentenced to more than two years in federal prison for smuggling horns taken from endangered African black rhinos. And as part of a multi-year operation that included this case, at least 50 other defendants have been arrested, charged, convicted, and sentenced in recent years for smuggling ivory taken from African or Asian elephants, rhino horns, and other protected species. Last week, while in London with the Attorney General, I met with our counterparts at Interpol, and many countries to discuss ways to even more effectively pursue this international conservation imperative. Next week, the Attorney General is convening a forum to continue the discussion. We will be joined by leading experts from across the federal government who will be looking at ways to more effectively pursue criminal enforcement of our wildlife trafficking laws.
Just this week, our environmental prosecutors obtained guilty verdicts against four defendants in New Jersey charged with felony dog fighting. And we have been supporting the Administration’s efforts to combat the illegal growth of marijuana on our nation’s public lands, which is having devastating effects on water resources and protected species in the Western United States, especially right here in California.
Throughout our civil and criminal enforcement program, we have prioritized our work in cases involving fraud against the United States, as well as rooting out and bringing enforcement actions against those who would undermine the integrity of environmental programs and the public’s trust in them.
In just the last two months alone, our Division has announced several successes in fighting fraud. Let me quickly mention several of those.
We announced a major Clean Air Act civil settlement that requires the defendant – an energy company – to retire 36 million renewable fuel credits (valued at $10 million) and to pay a $25 million civil penalty.
We obtained a 63-month prison sentence for an Ohio man and $26 million in restitution for his role in a conspiracy that generated millions of dollars in fraudulent renewable fuel credits.
We reached a major settlement with an auto parts company over aftermarket defeat devices in vehicles.
And we obtained a guilty plea involving a seafood company selling millions of dollars of foreign crab meat falsely labeled as blue crab and as “product of USA.”
I am proud of the hard work of our ENRD enforcement attorneys – both civil and criminal – in these cases and many others across our full docket. These successes are also shared with our agency partners. On that point, let me say this: I have known and worked with Acting Administrator Andrew Wheeler and Susan Bodine, the Assistant Administrator for EPA’s enforcement office (OECA) for many years, before our time in this Administration, and I know they understand and appreciate the rule of law and the importance of enforcing our nation’s environmental laws. It is an honor to work alongside them in our shared mission of environmental enforcement.
Defending Good Governance
Even as we vigorously enforce the law consistent with sound principles of federal enforcement, our Division is also defending lawful actions by the agencies we serve. This includes the strong defense of federal permits that authorize the construction and operation of energy infrastructure projects like the Dakota Access Pipeline, which was held up in the prior administration but is now fully operational. We are in active and ongoing litigation related to many pipelines as well as other infrastructure projects around the nation. These infrastructure cases are a priority for the Division. Likewise, the Division has made it a priority to defend the rightful prerogative of a new administration to review and reconsider the costs, benefits, soundness, and legality of the prior administration’s policies and regulations.
In our defensive work, I have the privilege of working alongside great lawyers like Daniel Jorjani at the Interior Department, Stephen Vaden at the Agriculture Department, George Fibbe at the Energy Department, Paul Ney and Harry Kelso at the Defense Department, and EPA’s General Counsel Matt Leopold. Matt happens to also be a former ENRD attorney and is a longtime friend who I know is as committed as anyone to the Constitution, the rule of law, and our mission under law to protect human health and the environment. I was glad to see him on the program for this conference as well, with our Deputy AAG, Jon Brightbill.
As has been discussed at many of the sessions at this conference, the Trump Administration is undertaking an ambitious agenda of regulatory reform, which many credit with helping to fuel the economic growth and job creation that our nation is currently enjoying. ENRD is supporting this regulatory reform work by advising our client agencies on high-priority rulemakings and ensuring the effective defense of regulatory actions in court. Anyone who has litigated on behalf of the federal government knows that you win some and you lose some. While we strive to win, we seek to do so consistent with doing justice. In our regulatory rollback and reform work, our aim at ENRD is to avoid unnecessary litigation, support the integrity of the administrative process, and conserve the resources of the courts, the agencies, and other litigants, while also defending the rightful prerogative of the Administration to set its own policy agenda.
Of course, the vast majority of our defensive cases are Administrative Procedure Act (APA) cases. As such, the administrative record forms the factual backbone of these cases. Often, our ability to successfully defend an agency action depends on the record used by the agency to make its decision. We work every day to ensure that the agencies provide a complete and appropriate administrative record when their decisions are challenged in court. We also want those records to contain all the necessary record documents – no more and no less. This means that documents that are not properly part of the record should be excluded from the record. For instance, just because a document is subject to disclosure under a FOIA request related to a certain agency action does not mean the same document is necessarily considered part of the administrative record. This is especially true for deliberative documents. The FOIA analysis is different than the determination of whether a particular document is properly part of the administrative record, and FOIA might yield documents that were never even seen by the agency’s decisionmaker.
To assist our client agencies in that task, I issued a memorandum last year setting forth the Division’s current position on the contents of administrative records. That memorandum, which reverses a position announced by ENRD in January 1999, is consistent with the position taken by the Office of the Solicitor General in briefs filed in federal appellate courts. The memo makes clear that agency “deliberative documents” are not properly part of the record, and therefore, generally should not be produced as part of the administrative record filed with the court, nor listed in a privilege log. This position is based on the determination that documents reflecting internal deliberations are immaterial to the purpose of record review litigation under the APA, and including them would chill free and frank agency discussion and decision-making. This is an issue that continually arises in our APA cases.
Another issue that arises often in our defensive work is the propriety of nationwide injunctions. Attorney General Sessions recently issued a memorandum on this topic. His view, and the position of the United States, is very clear: the trend of federal courts issuing nationwide injunctions should be challenged. There has been a recent increase in the number of judges who have been willing to issue injunctions or orders that block the entire federal government from enforcing a law or policy throughout the country. Attorney General Sessions was unequivocal about such actions, stating in a recent memo that “[t]hese abuses of judicial power are contrary to law.” He explained that “[t]he Constitution does not grant to a single district judge the power to veto executive branch actions with respect to parties not before the court. Nor does it provide the judiciary with authority to conduct oversight of or review policy of the executive branch.”
This has been the longstanding position of the Executive Branch under previous Administrations from both political parties. The litigation guidelines issued by Attorney General Sessions will help ENRD attorneys present strong and consistent arguments in court against the issuance of nationwide injunctions. You can expect our attorneys to be making these arguments in your cases, should the issue come up. This is true even in cases where we might have a policy preference for a particular court to enjoin a rule. Again, this is based in the impartial rule of law.
ENRD in the Supreme Court
Turning next to our ENRD practice at the Supreme Court, if you attended yesterday’s Supreme Court review panel, you heard there are seven environmental, natural resource, and Indian law cases before the Supreme Court this term. Not surprisingly, ENRD, working with the Office of the Solicitor General, is involved in all of them. This includes cases about designation of critical habitat, Fifth Amendment claims against local municipalities in federal court, Indian treaty rights, uranium mining, and National Park Service lands in Alaska.
Through the years, the United States has a strong record on environmental and natural resource cases before the Supreme Court, particularly in cases where we ask the Court for review. Interestingly, looking back over the last decade, the United States has filed cert petitions in just eighteen ENRD cases, and of those eighteen petitions, the Supreme Court granted cert in nine cases – half of them.
Of course, as this term demonstrates, ENRD’s docket of Supreme Court cases usually originates from cases in which our opponents have sought Supreme Court review or the Court has asked the United States for its views on whether a particular petition in a non-government case should be granted. In fact, of the seven merits-stage cases in which ENRD is involved so far this term, all of the petitions were filed by other parties. And of those seven cases, we filed amicus briefs at the petition stage in four of them – one “uninvited” amicus brief in which we supported the State of Oklahoma’s cert petition in Carpenter v. Murphy (involving the territorial boundaries of the Creek Nation), and three amicus briefs filed at the request of the Supreme Court in which we also supported cert: Washington Dept. of Licensing v. Cougar Den, Inc. (involving state taxation on off-Indian reservation commercial activities); Virginia Uranium, Inc. v. Warren (involving federal preemption of state laws regulating uranium mining); and Herrera v. Wyoming (involving an 1868 federal treaty and the application of hunting regulations to members of an Indian tribe). You will note that most of these cases relate to Indian country issues, which remains a topic of particular interest for the Supreme Court.
Finally, just yesterday, the United States filed a mandamus petition in the Supreme Court in the Juliana litigation. The history of the case may be familiar to many of you, but let me take a moment to recount the timeline and the issues.
In 2015, the Juliana plaintiffs – 21 minors, an environmental advocacy organization, and a guardian purporting to represent “future generations” – sued the United States, the President, eight Executive Branch agencies, and other federal defendants for depriving them of an asserted right to “a climate system capable of sustaining human life” under the Due Process Clause of the Fifth Amendment and related legal theories. As relief, these plaintiffs asked the district court to order the federal government to “move to swiftly phase out CO2 emissions, as well as take such other action as necessary to ensure that atmospheric CO2 is no more concentrated than 350 ppm by 2100, including to develop a national plan to restore Earth’s energy balance, and implement that national plan so as to stabilize the climate system.” As the district court judge herself framed it, “really the endgame is setting up a survival plan unless one of the other branches of government act – unless they act.” The federal district court in Oregon has set a 50-day trial to begin on October 29, just ten days from now.
On behalf of the United States, ENRD moved to dismiss the case long ago, and more recently we moved for judgment on the pleadings. We showed that the plaintiffs lack standing; that the purported constitutional right that they assert simply does not exist; that the public trust doctrine, which exists only as a matter of state law, is totally inapplicable here; and that the plaintiffs have not identified specific governmental actions that could be subject to challenge under the APA. Because we firmly believe there is no legal basis for this case to be heard in federal court, we also moved to stay the trial until the district court ruled on those dispositive motions.
In fact, no fewer than three courts have recently ruled that claims of this nature are not justiciable. In July of this year, in City of New York v. BP, a federal district court in New York rejected claims against energy companies on trespass and nuisance theories alleging that their sale and promotion of fossil fuels contributed to global warming. The court explained that “[t]o litigate such an action for injuries from foreign greenhouse gas emissions in federal court would severely infringe upon the foreign-policy decisions that are squarely within the purview of the political branches of the U.S. government.” The court also recognized that “global warming and solutions thereto must be addressed by the two other branches of government,” and they “are not for the judiciary to ameliorate.”
Similarly, in June of this year, Judge Alsup in the Northern District of California dismissed public nuisance climate change claims brought by the cities of Oakland and San Francisco against oil companies, on the basis that those claims are barred by the separation of powers. In that case, ENRD filed an amicus brief explaining the United States’ position that courts should refrain from fashioning new judicial remedies to address climate change issues – a position with which the district court agreed.
And in August of this year, in a case styled Aji P. v. Washington, a Washington state court rejected climate change claims by twelve young Washington residents, including one of the named plaintiffs in the Juliana lawsuit. Similar to the plaintiffs in the Oregon lawsuit, the plaintiffs here asked the Washington court to order the State to develop “an enforceable state climate recovery plan” and retain jurisdiction to “approve, monitor and enforce compliance” with that plan. The court correctly dismissed the case, finding that the “relief requested by Plaintiffs would require the Court to usurp the roles of the legislative and executive branches of our state government” in violation of the separation of powers.
The Washington court also addressed a second issue relevant to the Oregon case: whether the Constitution provides a fundamental right to a healthy climate. In the Washington case, the plaintiffs asserted a constitutional right nearly identical to the one that the plaintiffs request the Oregon court to recognize: a right to “stable climate system that sustains human life and liberty.” But the Washington court declined to recognize such a right, stating: “A stable and healthy climate, like world peace and economic prosperity, is a shared aspiration – the goal of a people, rather than the right of a person. These types of aims are the objectives of a polity, to be pursued through the political branches of government. They are not individual rights that can be enforced by a court of law.”
In the Oregon case, however, the court has consistently ignored or rejected these basic principles of separation of powers and has invoked, instead, a purported “failure of the legal system to protect humanity from the collapse of finite natural resources by the uncontrolled pursuit of short-term profits,” and stated that the “third branch can, and should, take another long and careful look at the barriers to litigation created by modern doctrines of subject-matter jurisdiction and deference to the legislative and administrative branches.”
In our view, the Oregon lawsuit is an unconstitutional attempt to use a single court to control the entire nation’s energy and climate policy. It is a matter of separation of powers and preserving the opportunity in our system of government for those policies to be decided by the elected branches, not the courts.
The Attorney General, in a speech earlier this week about judicial encroachment into the policymaking sphere, put it this way:
[The courts] should decide legal questions based on the law and the facts – not their policy preferences. It is of no moment whether a judge likes or dislikes a policy matter. Sometimes judges adopt the view that they can order some policy outcome since the politically accountable branches failed to act. Their failure to act is a policy decision, not a gap for the judiciary to fill. When Congress rejects a proposed policy, a decision has been made – just as surely as when they pass a bill into law. Courts have no right to impose the rejected choice.
Thus, federal district court judges are not empowered to fashion immigration policy, combat climate change, solve the opioid crisis, or run police departments. The Legislative and Executive branches – of federal and state government – are the constitutionally authorized branches to do these things, and if these branches haven’t done so to the satisfaction of an unaccountable judge, it’s not because they need judicial expertise or advice.
The Justice Department is continuing our efforts to see that the Oregon case is dismissed, as is clearly warranted by law. Our mandamus petition, filed yesterday in the Supreme Court, makes a strong and persuasive case for dismissal. We will see how the Court decides the issue. In the meantime, trial preparation continues.
Beyond the legal defects, the fallacies of the plaintiffs’ policy approaches are significant, as well. They are ignoring the clear fact that the United States is the global leader in environmental protection. Indeed, the United States leads the world in greenhouse gas reductions, and the United States is the global leader in the development of new energy technologies that are helping to reduce emissions. And importantly, the plaintiffs in Oregon are ignoring the fact that clean and responsible production and use of fossil fuels remains vital to the health and well-being of the American people, as the Article I and Article II branches of our government, across Administrations, have continued to recognize through their legislative enactments and policies. At bottom, our defense in the Juliana case is built on the rule of law and the Constitution. It is, in a very real sense, about defending democracy.
Conclusion
As you can tell, ENRD is a busy place. Since I joined the Division on January 20, 2017, it has felt more like a sprint than a marathon. But I am proud of what we have achieved over these 21 months, and I am confident that many more successes lie ahead for the Division under the leadership of AAG Jeff Clark.
So, let me conclude, again, by thanking Juge Gregg and the other organizers of this important conference. It is an honor for me to address you this morning. Thank you.
Abington Man Sentenced for Robbing Three BanksRead the Press Release
BOSTON – An Abington man was sentenced today in federal court in Boston for robbing three Greater Boston-area banks.
John Soule, 53, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 42 months in prison, three years of supervised release, and ordered to pay approximately $58,551 in restitution. In July 2018, Soule pleaded guilty to three counts of bank robbery. Soule was arrested and charged in September 2017 and has been detained since.
On July 12, 2017, Soule entered a branch of the Eastern Bank in Cambridge, where he jumped over the teller’s counter, stated that he had a knife, and demanded the bank’s money. The tellers gave Soule money from their drawers, and Soule exited the bank with $12,940.
On Aug. 9, 2017, Soule entered a branch of the Webster Bank on Franklin Street in Boston and announced a robbery. He jumped over the tellers’ counter and demanded the bank’s money. The tellers gave Soule money from their drawers, and he exited the bank with $3,137.
One month later, on Sep. 8, 2017, Soule entered a branch of the Rockland Trust on Quincy Street in Quincy, where he approached a teller demanding money and then jumped over the counter and entered the bank’s vault. A post-robbery audit determined that Soule stole over $42,000 during the robbery.
Video surveillance cameras outside of all three banks captured images of Soule on a mountain bike moments before and immediately after the robberies.
Throughout the investigation, law enforcement received various tips and information that Soule was the person responsible. On Sept. 29, 2017, Soule was located and arrested with over $8,000 in his possession. Soule later admitted his involvement in the robberies.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
"Operation Real Time:" Spartanburg Felon Sentenced to 10 Years for Firearm PossessionRead the Press Release
Greenville, South Carolina---- United States Attorney Sherri Lydon stated today that Harvest Maurice Sloan, age 39, of Spartanburg, was sentenced in federal court in Greenville, for being a felon in possession of a firearm. United States District Court Judge Mary Geiger Lewis of Columbia presided over the two-day trial in January and sentenced Sloan to ten years on the gun charge.
The government presented multiple witnesses during the course of the trial. Witness testimony and the evidence presented by the government at trial established that on April 25, 2017, a Greenville police officer encountered the defendant, Harvest Maurice Sloan, at a car while the officer was investigating a stolen vehicle report. During a search of the car, police located a backpack containing a loaded Ruger 9mm pistol, along with additional 9mm ammunition from the front seat area of the car.
A special agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) retrieved calls made by Harvest Maurice Sloan from the Greenville County jail that contained conversations relating to the pistol recovered by police.
Sloan was arrested federally as a part of “Operation Real-Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 159 defendants and seizure of approximately 266 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Lydon commended the partnership between the state and federal agencies that led to the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office adopting the case, “We remain at the ready and are eager to continue and grow this effort—working alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
The Greenville Police Department along with agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001. The case was prosecuted by Assistant United States Attorney Max Cauthen in the Greenville U.S. Attorney’s Office.
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18 October 2018
Worcester Man Sentenced for Being a Felon in PossessionRead the Press Release
BOSTON – A Worcester man was sentenced yesterday in federal court in Boston for being a felon in possession of a firearm and ammunition.
Franklin Safo-Agyare, a/k/a “Frankie So Smooth,” 25, was sentenced by U.S. District Court Judge Patti B. Saris to 30 months in prison and three years of supervised release, the first year of which he is prohibited from residing in or visiting the City of Worcester. In June, Safo-Agyare pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
Following a two-year investigation, Safo-Agyare and eight others were charged in January 2018 in connection with illegal drug distribution and firearm possession within and near the Mildred C. Hailey Apartments in Jamaica Plain, formerly known as the Bromley Heath Housing Development.
On June 6, 2016, Safo-Agyare sold a firearm to a cooperating witness in the parking lot of a grocery store which is adjacent to the development. According to court documents, Safo-Agyare has multiple convictions for assault with a dangerous weapon, resisting arrest, carrying a firearm and ammunition, and possession of a Class A substance. Due to these convictions, Safo-Agyare was prohibited from possessing firearms during the time of the offense.
The investigation and arrests sought to reduce violence and improve the quality of life in and around the Mildred C. Hailey Apartments for residents by removing individuals who distributed drugs and/or were actively involved in violence and gang disputes.
United States Attorney Andrew E. Lelling; Lawrence J. Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Gross made the announcement. Assistance was also provided by the Boston Housing Authority’s Department of Police and Public Safety.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wichita Man Charged with Three RobberiesRead the Press Release
WICHITA, KAN. – A Wichita man was charged in federal court today with robbing three commercial businesses, U.S. Attorney Stephen McAllister said.
Willie Smith, 38, Wichita, Kan., is charged with three counts of robbery. Documents filed in court allege that Smith:
- Robbed the Express Mart convenience store at 565 S. Market in Wichita on Oct. 14. A clerk said the robber lifted up his shirt to reveal the handle of a gun.
- Robbed Peter’s Liquor store at 332 W. Harry on Oct. 15. A clerk said the robber pulled out a gun and said, “Give me the money.”
- Robbed a Quick Trip store at 1532 S. Seneca on Oct. 16. A clerk said the robber displayed a handgun and demanded money.
According to an affidavit filed in the case, investigators found Smith’s fingerprints at the Express Mart and the Quick Trip. Investigators did not find a gun.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on each count. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney David Lind is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
West Hazleton Man Guilty of Receiving Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael Portanova, age 27, of West Hazleton, pleaded guilty on October 17, 2018, to receiving child pornography before Senior U.S. District Court Judge James M. Munley.
According to United States Attorney David J. Freed, Portanova admitted that he used his cell phone to receive images and videos of child pornography using a file-sharing network on the internet. Portanova committed the offense between August 2017 and October 30, 2017, in Luzerne County.
Portanova also admitted that he committed the offense after having been convicted of dissemination and possession of child pornography in Luzerne County in 2014.
Judge Munley ordered a presentence investigation to be completed, and scheduled sentencing for January 17, 2019.
Portanova was indicted by a federal grand jury in January 2018, as a result of an investigation conducted by Homeland Security Investigations and the Luzerne County District Attorney’s Office. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The maximum penalty under federal law for these offenses is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 15 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Washington, Pa. Felon Charged with Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH – A federal grand jury has returned an indictment charging a resident of Washington, Pennsylvania, with violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The four-count indictment, returned on October 16, named Gerald Herion Williams, age 33, as the defendant.
According to the indictment, in the Western District of Pennsylvania, Williams, a felon, unlawfully possessed a firearm and ammunition on September 12, 2018. It is a violation of federal law for a convicted felon to possess a firearm or ammunition. The Indictment further charges the defendant with distributing and possessing with the intent to distribute a quantity of heroin and fentanyl on August 28, 2018, and quantities of methoxyacetyl fentanyl, a controlled substance analogue, on September 8, 2017, and on September 15, 2017.
The law provides for a maximum total sentence for the defendant of up to 30 years in prison, a fine of up to $6,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Special Assistant United States Attorney Rachel Wheeler of the Washington County District Attorney’s Office is prosecuting this case on behalf of the government.
The Washington County District Attorney’s Office Drug Task Force, Washington City Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the Indictment in this case.
This case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.). On July 12, 2018, Attorney General Jeff Sessions selected the Western District of Pennsylvania as one of ten districts from across the country to implement the program. All cases involving the illegal distribution of synthetic opioids, such as fentanyl, arising in Washington County, Pennsylvania will be systematically prosecuted in federal court. The surge in federal resources has the twin goals of reducing the number of overdose fatalities and eliminating drug trafficking in synthetic opioids. The United States Attorney’s Office and the Drug Enforcement Administration, along with the Washington County District Attorney’s Office, the Pennsylvania State Police, and local Washington County Police Departments, are leading Operation Synthetic Opioid Surge (S.O.S.).
Wallingford Man Pleads Guilty to Drug Charge Related to Overdose Death InvestigationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that TIMOTHY ESTRIDGE, 37, of Wallingford, pleaded guilty yesterday in New Haven federal court to one count of possession with intent to distribute, and distribution of, amphetamine.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on December 16, 2017, the Wallingford Police Department and emergency medical personnel responded to a Wallingford residence after a 9-1-1 call reported the untimely death of a 38-year-old male. The caller who reported the death did not leave contact information and was not on scene when responders arrived. The victim was pronounced dead at the scene, where investigators seized evidence of illicit drug use, including a small plastic baggy containing approximately eight suspected oxycodone pills, a glass dish with white powder residue, a broken credit card, pieces of wax folds commonly used as heroin packaging, a used plastic syringe, and prescription pill bottles.
One of the pill bottles recovered was an empty bottle, in Estridge’s name, for 30 10-milligram Adderall pills.
The State of Connecticut Chief Medical Examiner determined the victim’s cause of death to be intoxication of a combination of heroin, fentanyl, oxycodone, alprazolam, amphetamine, and ethanol.
The investigation revealed that, on December 1, 2017, Estridge filled a prescription for Adderall, which contains amphetamine, and subsequently distributed the pills to the victim.
The investigation further revealed that, on multiple occasions between July and December 2017, Estridge possessed and distributed heroin and amphetamines.
Estridge is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on January 9, 2019, at which time he faces a maximum term of imprisonment of 20 years.
Estridge is detained pending sentencing.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force and the Wallingford Police Department. The case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
Utah Man Charged in Seven-Count Federal Indictment with Threat to Use a Biological Toxin as a WeaponRead the Press Release
A federal grand jury in Salt Lake City returned a seven-count indictment Thursday morning charging William Clyde Allen, III, age 39, of Logan, Utah, in connection with ricin-related threats. The indictment alleges he knowingly threatened to use a biological agent and toxin, specifically ricin, as a weapon.
Assistant Attorney General John C. Demers of the Department of Justice’s National Security Division, U.S. Attorney John W. Huber of Utah, Special Agent in Charge Eric K. Barnhart of the FBI’s Salt Lake City Field Office, Special Agent in Charge John Gullickson of the U.S. Secret Service’s Denver Field Office, and U.S. Postal Inspector Jared D. Bingham, Team Leader in Salt Lake City, announced the indictment.
The indictment also charges Allen with one count of mailing a threat against the President and five counts of mailing threatening communications to an officer or an employee of the United States in the indictment returned Thursday morning.
Allen was arrested on a federal complaint filed Oct. 5, 2018. He was ordered detained pending resolution of the case at a detention hearing Monday. U.S. Magistrate Judge Dustin B. Pead found him to be a danger to the community. Allen entered a plea of not guilty to the charges Thursday morning in U.S. District Court. U.S. District Judge David Sam will preside over a four-day trial starting Dec. 26, 2018, in Salt Lake City.
The indictment alleges the defendant sent a letter to the President of the United States with the language “Jack and the Missile Bean Stock Powder” and containing castor bean material.
Five counts of the indictment charge Allen with mailing threatening communications to an officer or an employee of the United States, including Secretary of Defense James N. Mattis; Admiral John M. Richardson, Chief of Naval Operations; FBI Director Christopher A. Wray; CIA Director Gina Haspel; and Secretary of the Air Force Heather Wilson.
Ricin naturally exists in, and may be extracted from, the seeds of the castor bean. The extraction of ricin from these seeds does not require technical expertise. Small doses of ricin are lethal to human beings if ingested, inhaled, or injected. According to Center for Disease Control information, there are no known antidotes for poisoning from ricin. Allen purchased 380 castor beans in December 2017 in quantities of 100 (two purchases) and 30 (six purchases).
The potential maximum penalty for threatening to use a biological toxin as a weapon is life in prison. Mailing a threat against The President has a potential maximum penalty of five years in prison and mailing a threatening communications to an officer or an employee of the United States has a potential 10-year sentence.
Indictments are not a finding of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The U.S. Attorney’s Office in Salt Lake City, with the assistance of the Department of Justice’s National Security Division’s Counterterrorism Section, is prosecuting the case. U.S. Postal Inspectors and special agents of the FBI and U.S. Secret Service are investigating the case.Using Opioids Leads to Three Deaths in Eastern IowaRead the Press Release
Three men who distributed an opioid that led to the death of the person who used the drug were sentenced to federal prison over the last week.
“Opioid abuse remains at an all-time high and these dangerous drugs wreak havoc on lives and communities,” said United States Attorney Pete Deegan. “Street drugs - including those sold over the internet - routinely contain powerful opioids. These drugs have never been more deadly and anyone caught distributing them will be held accountable.”
Opioids are extremely dangerous and powerful drugs. These drugs are so potent that extremely small doses can cause overdose and even death. The picture below shows fatal doses of three different opioids.
Over the last week, three men were sentenced to federal prison in Cedar Rapids for their roles in distributing opioids that eventually led to the deaths of three Iowans who used the drugs. These cases demonstrate that those buying and using drugs may not know they are getting. They may be getting more powerful and dangerous drugs then they realize. Either way, the use of an opioid too often ends with death because a drug user does not know what kind of drug they are taking or how dangerous it is.
The three men sentenced were:
- On October 17, 2018, Richard Leroy Parker, age 47, from Dubuque, Iowa, received a sentence of life imprisonment following a January 18, 2018, jury verdict finding him guilty of distribution of heroin within 1,000 feet of an elementary school and a playground, resulting in death, and of possession with intent to distribute heroin within 1,000 feet of an elementary school and a playground.
The evidence at trial showed that Parker obtained several grams of heroin in Chicago in April 2017. On Easter Sunday, Parker brought the heroin to a residence on Rhomberg Avenue in Dubuque. Parker and other individuals at the residence drank alcohol and smoked crack cocaine throughout the day. Prior to midnight, Parker and a woman went into a back bedroom. While inside the room, Parker gave the woman heroin, which she used. Shortly after using the heroin, she stopped breathing. At approximately 12:20 a.m. on April 17, Parker called 911, and emergency responders arrived at the scene. Parker testified that, as emergency responders were attempting to save the woman’s life, he went into another room and hid the remaining heroin in a chair. Investigators later found the rest of the heroin. The attempts to resuscitate the woman were unsuccessful, and she was pronounced dead shortly after 1:15 a.m.
Parker had numerous felony criminal convictions. Amongst his prior convictions are four prior felony convictions related to drugs, including three prior convictions for drug distribution. In April 2017, Parker had recently been released after spending nearly a decade in prison for a burglary conviction.
- On October 11, 2018, Jervonie Murphy, age 26, from Dubuque, Iowa, received a sentence of 33 months’ imprisonment following a May 21, 2018, guilty plea to two counts of distributing heroin within 1,000 feet of a public playground or school in Dubuque.
At the sentencing hearing, Murphy admitted he sold at least 80 grams of heroin between 2015 and 2018. On July 18, 2016,Murphy sold heroin to a woman. That woman shared some of the heroin with another woman who used the heroin and was found unresponsive the next morning. She never recovered and was pronounced dead on July 20, 2016. An autopsy revealed that the woman died of “mixed drug toxicity” involving methamphetamine and heroin.
Information presented at the sentencing also showed that less than two weeks later, Murphy again sold heroin. The Dubuque Drug Task Force eventually made two controlled buys of heroin from Murphy. One of the sales occurred within 1,000 feet of two playgrounds in Dubuque. The second controlled buy occurred within 1,000 feet of an elementary school. Officers then searched Murphy’s home and found marijuana, crack cocaine, powder cocaine, heroin, and fentanyl.
Murphy had no felony criminal convictions prior to this offense.
- On October 11, 2018, Jay Rickert, age 28, from Grand Rapids, Michigan, received a sentence of 18 months’ imprisonment following a June 14, 2018, guilty plea to willfully causing the distribution of a controlled substance.
According to information disclosed at sentencing and in sentencing documents, Rickert admitted to ordering DMT, an illegal hallucinogenic drug, from an on-line supplier on the dark web. Rickert had the drugs shipped directly to his friend, a 22-year‑old woman who lived in Dubuque, Iowa. He also shipped a precise digital scale to the woman, and provided her detailed instructions on the quantity of DMT she could safely use.
Unbeknownst to either Rickert or the woman in Dubuque, the dark web supplier shipped fentanyl instead of DMT. DMT and Fentanyl are nearly identical in appearance. The woman, believing the substance to be DMT, used the fentanyl and died. Rickert was talking to the woman over Skype while she used the fentanyl. After seeing her fall over, Rickert called 911. An autopsy later concluded that the cause of death was a fentanyl overdose.
Rickert had no criminal history prior to this conviction.
The pictures below show how similar DMT is to Fentanyl in appearance. The picture on the left is of DMT and the picture on the right is Fentanyl.
All three men were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. They are being held in the United States Marshal’s custody until they can be transported to a federal prison. There is no parole in the federal system.
The cases were prosecuted by Assistant United States Attorneys Dan Chatham and Justin Lightfoot and investigated by the Dubuque Drug Task Force, the Dubuque Police Department, the Dubuque County Sheriff’s Department, and the Drug Enforcement Administration (DEA).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number are 17-CR-1034 (Parker), 18-CR-1010 (Murphy), and 18-CR-1008 (Rickert).
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- On October 17, 2018, Richard Leroy Parker, age 47, from Dubuque, Iowa, received a sentence of life imprisonment following a January 18, 2018, jury verdict finding him guilty of distribution of heroin within 1,000 feet of an elementary school and a playground, resulting in death, and of possession with intent to distribute heroin within 1,000 feet of an elementary school and a playground.
Un hombre de Nueva Orleans se declara culpable de un delito de odio cometido durante el disparo de tres hombres afroestadounidenses que intentaban huir de la zona tras el Huracán KatrinaRead the Press Release
Roland J. Bourgeois, Jr., de 55 años, vecino de Nueva Orleans, Luisiana, compareció ante la Jueza Superior del Tribunal Federal de Distrito Mary Ann Vial Lemmon y se declaró culpable ante los cargos de que, tras el Huracán Katrina, disparó a tres hombres jóvenes afroestadounidenses por motivo de su raza mientras los hombres intentaban huir de Nueva Orleans. Así anunciaron John Gore, el Fiscal General Auxiliar en funciones de la División de Derechos Civiles; Peter G. Strasser, el Fiscal Federal para el Distrito Oriental de Luisiana; y Eric J. Rommal, el Agente Especial Encargado de la División del Buró Federal de Investigaciones (FBI, por sus siglas en inglés) en Nueva Orleans.
Según los documentos presentados en apoyo de la declaración, poco después de la llegada del Huracán Katrina a Nueva Orleans, Bourgeois y otros hombres blancos, vecinos del barrio de Algiers Point, acordaron utilizar fuerza para alejar a los afroestadounidenses de su barrio. Transportaron árboles caídos para bloquear las calles cerca de sus casas y comenzaron patrullas armadas en el barrio.
El 1 de septiembre del 2005, tres hombres jóvenes afroestadounidenses, D.H, M.A. y C.C., caminaron a Algiers Point en un intento de llegar al desembarque del transbordador, un lugar que las agencias estatales y federales estaban usando como punto de evacuación. Cuando los tres hombres cruzaron la barricada construida por Bourgeois y otros, Bourgeois abrió fuego con una escopeta y lesionó a los tres hombres. Después de que huyeran, Bourgeois se jactó que había «dado con uno» y prometió «matar a ese [palabra racista] si el hombre llegara a sobrevivir. Bourgeois advirtió a uno de sus vecinos que «se disparará a cualquier cosa que pase por esta calle cuya tez sea más oscura que un saco de papel marrón».
«Esta declaración de culpabilidad demuestra el compromiso continuo del Departamento de Justicia a lo largo del tiempo a hacer que los autores de delitos de odio rindan cuentas de sus acciones», declaró el Fiscal General Auxiliar en funciones John Gore. «Todo estadounidense, independientemente de su raza, tiene derecho a vivir libre de violencia y daños físicos».
«Una de las tareas principales del Departamento de Justicia es la defensa de los derechos civiles de nuestros ciudadanos. Esta condena demuestra el compromiso de los cuerpos del orden público a hacer que los individuos rindan cuentas de sus acciones, a pesar del paso del tiempo», afirmó el Fiscal Federal Strasser. «Espero que esta declaración de culpabilidad ofrezca un atisbo de paz a aquellos que fueron directamente impactados por este delito y a esta gran ciudad que sufrió tanto en los días después del Huracán Katrina».
«Aunque estos delitos y el Huracán Katrina ocurrieron hace más de 13 años, el FBI no se olvida. La declaración de culpabilidad de hoy es una prueba de que la justicia perdura y de que continuaremos persiguiendo a aquellos que vulneren y priven a otros de sus derechos civiles», dijo el Agente Especial Encargado del FBI Eric J. Rommal.
Bourgeois será condenado el 17 de enero del 2019. Conforme los términos del acuerdo de admisión de culpabilidad, Bourgeois se enfrenta a un mínimo de cinco años de cárcel y un máximo de diez años. Previamente, Bourgeois fue acusado en una acusación formal de cinco cargos en julio del 2010.
El FBI llevó a cabo la investigación. El caso está siendo enjuiciado por el Fiscal Federal Auxiliar para el Distrito Oriental de Luisiana David Howard Sinkman y el Consejero de Litigios Especiales Jared Fishman y la Abogada de Litigios Mary J. Hahn de la División de Derechos Civiles.
Two Michigan Home Health Agency Owners Sentenced to Prison for Health Care FraudRead the Press Release
Two Detroit-area home health agency owners were sentenced to 10 and six years in prison, respectively, for their roles in a multimillion dollar scheme to defraud Medicare by billing for home health services that were never provided.
Assistant Attorney General Brian A. Benczowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Hafiz Tahir, 49, and Tasneem Tahir, 44, both of Brownstown, Michigan, were sentenced by U.S. District Judge Marianne O. Battani of the Eastern District of Michigan, to 10 and six years in prison, respectively. Judge Battani also ordered the defendants to pay restitution in the amount of $9,674,575 and $4,447,667, respectively, jointly and severally with their co-conspirators. Judge Battani entered money judgments against Hafiz Tahir, in the amount of $5,575,562.33, and Tasneem Tahir, in the amount of $2,605,176.70. The Tahirs were also ordered to forfeit to the United States their interest in $226,000 located in a Lebanese bank, two pieces of real property and cash in lieu of two vehicles. The defendants each pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to pay and receive health care kickbacks.
As part of their guilty pleas, Hafiz and Tasneem Tahir admitted that they paid illegal kickbacks in exchange for the referral of Medicare beneficiaries to home health agencies that they owned. They further admitted that between 2009 and 2017, they submitted false and fraudulent claims to Medicare for home health services that were never provided.
Hafiz and Tasneem Tahir were charged along with Hoda Sabbagh, aka Donna Hamadani, 54, of Milford, Michigan; Emma King, 69, of Detroit, Michigan; and Antonio Kho, 72, of Oak Park, Michigan. King and Kho pleaded guilty and are pending sentencing. Sabbagh remains a fugitive.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and HHS-OIG investigated the case. Trial Attorney Rebecca Yuan of the Fraud Section prosecuted the case. The financial investigation was conducted in coordination with the Forfeiture and Financial Litigation Unit of the U.S. Attorney’s Office for the Eastern District of Michigan. Assistant U.S. Attorney Shankar Ramamurthy of the Eastern District of Michigan handled the asset forfeiture proceedings.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Two Men Plead Guilty to Charges in Fatal Shooting in Northeast WashingtonRead the Press Release
WASHINGTON –Marco F. Williams, 25, and Barry J. Giles, 22, also known as “Juany,” both of Washington, D.C., have pled guilty to charges in the October 2016 shooting death of a man in the Fort Lincoln neighborhood of Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Williams pled guilty to voluntary manslaughter while armed. Giles pled guilty to one count of voluntary manslaughter and one count of carrying a pistol without a license. Both pleas took place on Oct. 17, 2018, in the Superior Court of the District of Columbia. The pleas, which are contingent upon the Court’s final approval, call for a prison sentence for Williams of 186 months, or 15 ½ years, and a prison sentence for Giles of 102 months, or 8 ½ years. The Honorable Judith Bartnoff scheduled sentencing for Dec 18, 2018.
The evidence in support of the guilty pleas showed that on the night of Wednesday, Oct. 5, 2016, Williams and Giles were in the Fort Lincoln neighborhood, where each of them had ties. Specifically, they were in the area of the 3100 block of Berry Road NE, where they spent time and drank alcohol with the victim, Timothy Lassiter, and others.
Both Williams and Giles had pistols. In the course of the evening, Williams and Giles resolved to shoot and kill Mr. Lassiter, 36. At 11:42 p.m., Williams, armed with a 9mm semi-automatic pistol, fired four shots at Mr. Lassiter, striking him twice. Four 9mm cartridge cases fired from the same gun were recovered in the area where Mr. Lassiter’s body was found by responding medics and police officers.
The evidence established that after Mr. Lassiter was shot by Williams, Giles went through Mr. Lassiter’s pockets and removed items of personal property.
Mr. Lassiter was transported by ambulance to a hospital and was pronounced dead early on Oct. 6, 2016. Following Mr. Lassiter’s funeral on Saturday, Oct. 15, 2016, Giles went on social media and posted a video of himself talking about the shooting of Mr. Lassiter. In the video, which was soon thereafter deleted, Giles boasted and bragged about his role in the shooting.
Warrants for the arrest of the two defendants were issued on March 1, 2018. Giles was arrested on March 5, 2018, and Williams, who was otherwise serving a sentence, was arrested on March 29, 2018. Both have been held without bond since their arrests.
In announcing the guilty pleas, U.S. Attorney Liu and Chief Newsham commended the work of detectives of the Criminal Investigations Division’s Homicide Branch, forensic scientists from the District of Columbia Department of Forensic Sciences, who processed the crime scene, and officers of MPD’s Fifth Police District, who responded to the shooting. They also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys David Misler and Michael D. Brittin; Criminal Investigators Durand Odom and Mark Crawford; Paralegal Specialist Debra Joyner; and Investigative Analysts Shannon Alexis and Zachary McMenamin.
Twice-Convicted Honduran Felon Admits Illegally Re-entryRead the Press Release
UTICA, NEW YORK – Ronald Pineda-Carias, age 41, and a citizen of Honduras, pled guilty today to illegally re-entering the United States as a felon.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
On May 2, 2006, Pineda-Carias was convicted of felony cocaine possession in Miami, Florida, and was thereafter removed from the United States to Honduras. On November 4, 2011, he was convicted of illegally re-entering the United States in the United States District Court for the Western District of Pennsylvania. Pineda-Carias was again removed to Honduras. In all, Pineda-Carias has been removed to Honduras on 5 occasions.
On August 9, 2018, a Border Patrol Agent encountered Pineda-Carias in downtown Plattsburgh, New York. Pineda-Carias had a brief conversation with the agent, but then fled on foot and dove into the Saranac River in an effort to evade agents. After a brief search, a Plattsburgh Police Officer discovered Pineda-Carias hiding in bushes on the southwest bank of the river.
As a result of his conviction, Pineda-Carias faces up to 10 years in prison when he is sentenced by United States District Judge David N. Hurd on December 20, 2018. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Border Patrol, with assistance from the Plattsburgh Police Department, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Tulare County Men Indicted in Firearms and Cockfighting CaseRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 14-count indictment today against Pedro Gavino, 23, and his father, Pedro Gavino-Robles, 58, both of Orosi, charging them with four felony counts of animal cruelty violations relating to cockfighting, U.S. Attorney McGregor W. Scott announced.
In addition, Gavino was charged with dealing firearms without a license and nine counts of possessing and transferring firearms in violation of the National Firearm Act. According to court documents, from February 2017 to October 4, 2018, Gavino sold homemade AR-15 style assault rifles that did not have any serial numbers or manufacture markings. Gavino was not a licensed firearms dealer. During one of his firearms transactions, Gavino sold gamecocks and knives or gaffs for the purpose of cockfighting. Gavino and his father, Pedro Gavino-Robles, allegedly bought, trained, and sold hundreds of gamecocks from their ranch and attended cockfights in Tulare County. During the execution of a federal search warrant at their ranch, agents found at least 150 gamecocks and 278 knives used in cockfighting.
Cockfighting violates federal law and is outlawed in all 50 states. In cockfighting, roosters, bred for fighting and often provided with stimulants to make them more aggressive, are placed in a pit and goaded to fight. With knives attached to their legs, the birds kick one another to the death, all for the entertainment and profit of spectators, exhibitors, and sponsors.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Department of Agriculture, with assistance from the Dinuba Police Department and the Multi-Agency Gang Enforcement Consortium (MAGEC), consisting of officers from the California Highway Patrol, the Fresno County Sheriff’s Office, and Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Gavino is scheduled to be arraigned in the federal court in Fresno on October 19, 2018. An arrest warrant has issued for Gavino-Robles. If convicted, Gavino faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each of the nine counts of possessing and transferring unregistered firearms. He also faces a maximum statutory penalty of five years in prison and a $250,000 fine for dealing firearms without a license. Both defendants face a maximum statutory penalty of five years in prison and a $250,000 fine for each of the four counts relating to selling gamecocks and knives used in cockfights. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Three Former Biscayne Park Patrol Officers Sentenced for Deprivation of Civil Rights by Intentionally Making False ArrestsRead the Press Release
Acting Assistant Attorney General John Gore for the Justice Department’s Civil Rights Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced that former Biscayne Park Police Officer Guillermo Ravelo was sentenced to 27 months incarceration for conspiracy to deprive a person of his civil rights and deprivation of civil rights under color of law.
“These officers conspired to falsely arrest individuals in the name of providing deceptive clearance statistics for the benefit of Chief Atesiano,” said Acting Assistant Attorney General John Gore. “Chief Atesiano and these officers abused their authority and the Department will continue to ensure officers such as these are held accountable.”
“Officers who use excessive force and make false arrests maliciously cause harm to their victims and scourge our justice system,” said U.S. Attorney Ariana Fajardo Orshan. “With great power, comes great responsibility. Through aggressive federal prosecutions, the U.S. Attorney’s Office for the Southern District of Florida will continue to guard the invaluable civil rights of every member of our community and hold those accountable who violate our constitutional protections.”
“These three police officers from Biscayne Park disgraced themselves and damaged the public’s trust in law enforcement. Their actions are inexcusable and are not representative of the law enforcement professionals who serve us selflessly,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “The citizens of South Florida can take comfort in the fact that the vast majority of police officers are honest, forthright individuals who are committed to doing the job right. To those officers who aren’t, the FBI’s Miami Area Corruption Task Force was assembled and designed to root them out.”
“Honesty and integrity are the core values of every effective police officer,” said State Attorney Katherine Fernandez Rundle. “Former Biscayne Park Police Officers Guillermo Ravelo, Charlie Dayoub and Raul Fernandez undermined their essential task of protecting the community, in some instances by using excessive force and in others, by conspiring to deprive suspects of their civil rights so as to produce bogus arrests. This absolute abuse of power by all three officers violated every aspect of the oath Ravelo, Dayoub, and Fernandez took the day they became police officers.”
“The officers’ actions are everything we guard against in law enforcement and violated our most important principals,” said FDLE Miami Special Agent in Charge Troy Walker. “When an officer abuses the public’s trust, there must be severe consequences. I thank the U.S. Attorney’s Office for their work on this case.”
According to court filings, on Jan. 23, 2013 and Feb. 26, 2014, at the direction of then Biscayne Park Police Department Chief Raimundo Atesiano, Ravelo falsely arrested a victim identified as “C.D.” and another victim identified as “E.B.” C.D. was charged with two residential burglaries, and E.B. was charged with five vehicle burglaries, both without probable cause. In a separate incident, on April 7, 2013, Ravelo responded to a request for assistance from another Biscayne Park police officer who had conducted a traffic stop. During the arrest of the driver, Ravelo used unreasonable force by striking the handcuffed driver with his fists.
Former Chief Atesiano previously pleaded guilty to acting under color of law as chief of police when on three separate occasions he ordered officers Ravelo, Charlie Dayoub and Raul Fernandez to falsely arrest and charge individuals with unsolved burglaries. In court filings related to the plea, Atesiano admitted that he instructed Ravelo to falsely arrest and charge E.B for five vehicle burglaries based upon what Atesiano knew were false confessions. Former Chief Atesiano is scheduled to be sentenced on Nov. 27, 2018.
Former officers Charlie Dayoub and Raul Fernandez were each sentenced to 12 months in prison for their role in falsely arresting a 16-year old juvenile, “T.D.,” for four unsolved burglaries. Dayoub and Fernandez were the first officers to cooperate with the government and accept responsibility for their criminal acts. Their cooperation directly implicated Atesiano and resulted in an indictment being returned against the former chief charging civil rights violations.
As noted at the hearing and in court filings, on June 13, 2013, Chief Atesiano instructed the officers to unlawfully arrest and falsely charge T.D., a juvenile previously known to Chief Atesiano and Dayoub. Dayoub and Fernandez complied with Chief Atesiano’s instructions and falsely arrested T.D. Fernandez wrote narratives containing fabricated information in support of the four arrest affidavits that falsely claimed an investigation revealed that T.D. had committed the four burglaries. Dayoub signed and attested that the contents of the affidavits were true even though he, like Chief Atesiano and Fernandez, knew that no evidence existed to substantiate the arrest. T.D. was subsequently arrested for the four burglaries.
According to court filings, Chief Atesiano intentionally encouraged officers to arrest individuals without a legal basis in order to have arrests effectuated for all reported burglaries, which created a fictitious 100% clearance rate for that category of crime.
This case was investigated by the FBI, including the FBI Miami Area Corruption Task Force, and FDLE, and assisted by the Miami-Dade State Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Department of Justice Trial Attorney Donald W. Tunnage, and Assistant State Attorney Trent Reichling.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Former Biscayne Park Patrol Officers Sentenced for Deprivation of Civil Rights by Intentionally Making False ArrestsRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Acting Assistant Attorney General John Gore for the Justice Department’s Civil Rights Division, Katherine Fernandez Rundle, Miami-Dade State Attorney, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced that former Biscayne Park Police Officer Guillermo Ravelo was sentenced to 27 months incarceration for conspiracy to deprive a person of his civil rights and deprivation of civil rights under color of law.
“Officers who use excessive force and make false arrests maliciously cause harm to their victims and scourge our justice system,” said U.S. Attorney Ariana Fajardo Orshan. “With great power, comes great responsibility. Through aggressive federal prosecutions, the U.S. Attorney’s Office for the Southern District of Florida will continue to guard the invaluable civil rights of every member of our community and hold those accountable who violate our constitutional protections.”
“These officers conspired to falsely arrest individuals in the name of providing deceptive clearance statistics for the benefit of Chief Atesiano,” said Acting Assistant Attorney General John Gore. “Chief Atesiano and these officers abused their authority and the Department will continue to ensure officers such as these are held accountable.”
“These three police officers from Biscayne Park disgraced themselves and damaged the public’s trust in law enforcement. Their actions are inexcusable and are not representative of the law enforcement professionals who serve us selflessly,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “The citizens of South Florida can take comfort in the fact that the vast majority of police officers are honest, forthright individuals who are committed to doing the job right. To those officers who aren’t, the FBI’s Miami Area Corruption Task Force was assembled and designed to root them out.”
“Honesty and integrity are the core values of every effective police officer,” said State Attorney Katherine Fernandez Rundle. “Former Biscayne Park Police Officers Guillermo Ravelo, Charlie Dayoub and Raul Fernandez undermined their essential task of protecting the community, in some instances by using excessive force and in others, by conspiring to deprive suspects of their civil rights so as to produce bogus arrests. This absolute abuse of power by all three officers violated every aspect of the oath Ravelo, Dayoub, and Fernandez took the day they became police officers.”
“The officers’ actions are everything we guard against in law enforcement and violated our most important principals,” said FDLE Miami Special Agent in Charge Troy Walker. “When an officer abuses the public’s trust, there must be severe consequences. I thank the U.S. Attorney’s Office for their work on this case.”
According to court filings, on Jan. 23, 2013 and Feb. 26, 2014, at the direction of then Biscayne Park Police Department Chief Raimundo Atesiano, Ravelo falsely arrested a victim identified as “C.D.” and another victim identified as “E.B.” C.D. was charged with two residential burglaries, and E.B. was charged with five vehicle burglaries, both without probable cause. In a separate incident, on April 7, 2013, Ravelo responded to a request for assistance from another Biscayne Park police officer who had conducted a traffic stop. During the arrest of the driver, Ravelo used unreasonable force by striking the handcuffed driver with his fists.
Former Chief Atesiano previously pleaded guilty to acting under color of law as chief of police when on three separate occasions he ordered officers Ravelo, Charlie Dayoub and Raul Fernandez to falsely arrest and charge individuals with unsolved burglaries. In court filings related to the plea, Atesiano admitted that he instructed Ravelo to falsely arrest and charge E.B for five vehicle burglaries based upon what Atesiano knew were false confessions. Former Chief Atesiano is scheduled to be sentenced on Nov. 27, 2018.
Former officers Charlie Dayoub and Raul Fernandez were each sentenced to 12 months in prison for their role in falsely arresting a 16-year old juvenile, “T.D.,” for four unsolved burglaries. Dayoub and Fernandez were the first officers to cooperate with the government and accept responsibility for their criminal acts. Their cooperation directly implicated Atesiano and resulted in an indictment being returned against the former chief charging civil rights violations.
As noted at the hearing and in court filings, on June 13, 2013, Chief Atesiano instructed the officers to unlawfully arrest and falsely charge T.D., a juvenile previously known to Chief Atesiano and Dayoub. Dayoub and Fernandez complied with Chief Atesiano’s instructions and falsely arrested T.D. Fernandez wrote narratives containing fabricated information in support of the four arrest affidavits that falsely claimed an investigation revealed that T.D. had committed the four burglaries. Dayoub signed and attested that the contents of the affidavits were true even though he, like Chief Atesiano and Fernandez, knew that no evidence existed to substantiate the arrest. T.D. was subsequently arrested for the four burglaries.
According to court filings, Chief Atesiano intentionally encouraged officers to arrest individuals without a legal basis in order to have arrests effectuated for all reported burglaries, which created a fictitious 100% clearance rate for that category of crime.
This case was investigated by the FBI, including the FBI Miami Area Corruption Task Force, and FDLE, and assisted by the Miami-Dade State Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Department of Justice Trial Attorney Donald W. Tunnage, and Assistant State Attorney Trent Reichling.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
The U.S. Attorney's Office filed highest number of narcotics and violent crime indictments since at least 2005Read the Press Release
Under the leadership of Attorney General Jeff Sessions, the Department of Justice charged the largest number of violent crime and firearm defendants in its history in Fiscal Year (FY) 2018.
In the Northern District of Ohio, the U.S. Attorney’s Office filed indictments against 959 defendants – an increase of 50 percent over the previous fiscal year and the highest number since FY 2006.
Those indictments in the Northern District of Ohio include:
- Indictments filed against 393 defendants for narcotics offenses – the highest number since 2005 and an increase of 69 percent over the previous fiscal year.
- Indictments filed against 268 defendants for violent crime offenses – the highest since 2004 and an increase of 53 percent over the previous fiscal year.
“President Donald Trump is a law-and-order President—and this is a law-and-order administration,” said Attorney General Jeff Sessions. “The Department of Justice is breaking law enforcement records and doing so by significant margins. When I took office as Attorney General, I ordered federal prosecutors and agents to take illegal guns off of our streets, to prosecute crimes aggressively, to protect our nation’s borders, and to target white collar fraud. With support from our state and local partners, our federal prosecutors and agents have delivered—and I am grateful to them and the fabulous state and local officers who worked so hard to make these achievements possible. And we are seeing results. Violent crime and homicides, which jumped in 2015 and 2016, both dropped in 2017 and will drop again in 2018. There can be no doubt that good law enforcement policies can make our communities safer.”
U.S. Attorney for the Northern District of Ohio Justin Herdman said: “We have identified violent crime and drug overdoses as the biggest threats to our community. We have worked with local police and federal agencies to try to dismantle drug distribution networks, seek long prison sentences for those who use guns to commit crimes and strategically target those who have caused pain and suffering for our neighbors. Aggressive enforcement of the law is a crucial part of a broad strategy to improve our communities.”
Herdman added: “Numbers tell only part of the story, but they are an important reflection of the sustained, maximum effort made by the men and women of the U.S. Attorney’s Office into making our communities safer and healthier.”
According to data from the Executive Office of United States Attorneys (EOUSA), the number of defendants charged with criminal felony offenses increased by nearly 15 percent from more than 71,200 defendants in FY 2017 to more than 81,800 in FY 2018.
In FY 2018, the Justice Department charged the largest number of violent crime defendants since EOUSA started to track this category more than 25 years ago (more than 16,800)—surpassing by nearly 15 percent the previous record set just last year.
In FY 2018, the Justice Department charged more than 15,300 defendants with federal firearms offenses, which is 17 percent more than the previous record.
In FY 2018, over 23,400 defendants were charged with felony illegal re-entry, an increase of more than 38 percent from FY 2017.
In FY 2018, over 23,600 defendants were charged with drug-related offenses, an increase of more than six percent from FY 2017.
Also in FY 2018, the Justice Department increased white-collar prosecutions by more than three percent, charging more than 6,500 defendants.
Finally, in FY 2018, more than 68,400 defendants were charged with misdemeanor illegal entry. This is the highest number of such defendants charged since EOUSA started to track this category and an almost 86 percent increase from the previous year. This total is also more than 4 percent higher than the previous record of over 65,500 defendants set in FY 2013.
Syracuse Man Sentenced to 140 Months for Credit Card Fraud SchemesRead the Press Release
SYRACUSE, NEW YORK – Daquan Rice, age 23, of Syracuse, was sentenced today to 140 months in prison, to be followed by a 3-year term of supervised release, in connection with his prior guilty plea to charges involving a years-long credit card cloning operation, announced United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the of the Albany Field Office of the Federal Bureau of Investigation (FBI); Postal Inspector in Charge Joseph Cronin; New York State Police Superintendent George P. Beach II; and Syracuse Police Chief Frank Fowler. Senior Judge Frederick J. Scullin also ordered Rice to forfeit $82,550.00.
The defendant was sentenced today for two separate federal cases involving illegal credit card activity. The first, to which he pled guilty on June 1, 2017, involved wire fraud, money laundering and aggravated identity theft, based on his role in a scheme that generated tens of thousands of dollars from the use of stolen and counterfeit credit cards. As part of his guilty plea to those charges, the defendant admitted to the purchase of stolen credit card numbers belonging to hundreds of different victims, frequently from computer hackers located overseas, and the fabrication of cloned credit cards. Rice further admitted that he used those cloned credit cards to purchase tens of thousands of dollars in merchandise and prepaid gift cards. The defendant then used those prepaid gift cards to purchase United States Postal money orders, which he converted to cash. Rice’s and his co-defendants’ criminal conduct spanned from 2014 through 2016 and took place in Syracuse, as well as Texas and Georgia.
Today’s sentence also covered a second federal criminal case to which the defendant pled guilty on May 25, 2018, relating to the defendant’s participation in a counterfeit credit card scheme while he was in jail awaiting sentencing on the initial federal charges. In that second case, Rice pled guilty to wire fraud and aggravated identity theft, and admitted that in August and September 2017, he and a co-defendant acquired stolen credit card numbers, made deposits with those numbers into inmate commissary accounts, and then directed that checks be drawn from those commissary accounts and mailed out to locations in Syracuse, New York. Rice and his co-defendant made more than $8,600.00 in deposits using the stolen credit card accounts. Three checks, totaling $550.00, were sent out from the commissary accounts where deposits had been made with the stolen credit cards. However, prison officials froze the accounts and blocked the withdrawal requests before Rice could transfer additional funds.
These cases were investigated by the United States Postal Inspection Service, the Federal Bureau of Investigation (FBI), the Syracuse Police Department – Gang Violence Task Force, the New York State Police, the Cayuga County Sheriff’s Office, and the Town of Dewitt Police Department, and were prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Superseding Indictment Filed Charging Nine Members of North Philadelphia Drug Trafficking OrganizationRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that a superseding indictment was unsealed today, charging nine members of a drug trafficking organization with multiple counts related to the distribution of large quantities of drugs in North Philadelphia, including cocaine, crack, methamphetamine, and heroin.
The following individuals, all of Philadelphia, have been charged:
- Abdul West, a/k/a “Assault Rifle Ab,” “AR-Ab,” “El Patron,” “the Goon,”
- Jamaal Blanding, a/k/a “Bionickhaz,” “Khaz,” “Deangelo Smith,”
- Jameel Hickson, a/k/a “Meliano,” “OG,”
- Richard Chase Hoover, a/k/a “Boog,”
- Dontez Stewart, a/k/a “Taz,”
- Amir Boyer, a/k/a “Mulla,”
- Daryl Baker, a/k/a “Shotti,”
- Hans Gadson, a/k/a “NoBrakes Bras,” and
- Dennis Harmon.
The superseding indictment charges a conspiracy to distribute 5 kilograms or more of cocaine, 280 grams or more of crack, 50 grams or more of methamphetamine, and 100 grams or more of heroin. The superseding indictment also includes individual charges of possession with intent to distribute cocaine, methamphetamine, crack, and heroin; distribution of methamphetamine; and a charge of unlawful possession of a firearm.
According to the superseding indictment, West is the leader of a local gang, and each of the defendants is a member or associate of the gang. From at least March 2017 through June 2018, the superseding indictment alleges that these defendants have operated their drug trafficking network in the area around North Sydenham Street in Philadelphia, bringing in drugs from California and elsewhere to distribute locally, and obtaining high-end rental properties in Philadelphia through false identities to prevent detection and protect their drug supply. On September 11, 2017, the Philadelphia Police Department executed a search warrant at a house owned by West on North Sydenham Street, recovering 62 grams of crack, 229 grams of heroin, and 48 grams of methamphetamine, as well as $8,000 in cash and a handgun. On May 17, 2018, the FBI executed a search warrant at an apartment complex on Christopher Columbus Boulevard, recovering approximately 10 kilograms of cocaine and nearly 6 pounds of methamphetamine, along with $20,000 in cash.
“The charges alleged in the superseding indictment are extremely serious, and if convicted, these defendants are facing major jail time,” said U.S. Attorney McSwain. “The investigation and prosecution of drug trafficking organizations remains a high priority of this Office and the Department of Justice. We are committed to doing everything we can to keep our streets safe and stop the flow of these deadly drugs into our communities.”
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Jennifer Jordan.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Stock Broker Pleads Guilty to $3 Million Insider Trading Scheme Based on Confidential Information Misappropriated from an Investment BankRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that MICHAEL SIVA pled guilty today before U.S. District Judge Alison J. Nathan to conspiracy to commit securities fraud and fraud in connection with his role in an insider trading scheme based on material, nonpublic information misappropriated from an investment bank by Daniel Rivas, a former employee at the bank. In August 2017, SIVA, Roberto Rodriguez, Rodolfo Sablon, and Jeffrey Rogiers were arrested and charged in a 54-count Indictment for their involvement in three insider trading schemes, all stemming from information misappropriated by Rivas. Rivas and an additional participant, James Moodhe, had previously pled guilty and are cooperating with the government in this investigation. Prior to SIVA’s guilty plea, the four other defendants each pled guilty. All of the defendants will be sentenced by Judge Nathan.
U.S. Attorney Geoffrey S. Berman said: “As Michael Siva admitted today, he knowingly used misappropriated confidential corporate information to place trades in the accounts of his brokerage clients in order to make it look like he was a talented stock selector. In reality, Siva was a criminal. Together with the trading of James Moodhe, Siva’s client from whom Siva obtained the illicit information, Siva’s trading resulted in millions in illicit profits on which Siva was paid tainted commissions. Corrupt brokers like Siva will be held to account for their crimes. This Office is committed to identifying and prosecuting inside information-sharing networks that undermine our nation’s securities markets.”
According to the allegations contained in the Indictment filed against SIVA and his co-conspirators, and statements made in related court filings and proceedings:
The Investment Bank and Rivas
From August 2013 through May 2017, Rivas was employed as a technology consultant in the Research and Capital Markets Technology Group of an investment bank (the “Investment Bank”). In this role, Rivas had access to an internal, proprietary system maintained by the Investment Bank (the “Deal Tracking System”) containing material, nonpublic information (“Inside Information”) about potential and unannounced merger and acquisition transactions, including tender offers, involving the Investment Bank. The Investment Bank’s written policies prohibited the unauthorized disclosure of confidential information, which included Inside Information. Rivas had a duty, among other obligations, to maintain the confidentiality of all of the Investment Bank’s confidential information, including the Inside Information.
Overview of Insider Trading Schemes
From August 2014 through April 2017, Rivas violated the duties of confidentiality he owed to the Investment Bank by serially misappropriating material, nonpublic information from the Investment Bank’s Deal Tracking System and passing that information along to friends so that they could utilize it to make profitable trades. On more than 50 occasions between August 2014 and April 2017, Rivas provided Inside Information about contemplated but unannounced merger and acquisition (“M&A”) transactions and tender offer transactions involving clients and prospective clients of the Investment Bank to friends who used that information to purchase and sell securities. In total, the insider trading based on Inside Information misappropriated by Rivas resulted in illicit profits of more than $5 million through trading in more than two dozen securities. The Inside Information was passed through three tipping chains.
The Rivas-Moodhe-Siva Tipping Chain
SIVA was a member of the first of three tipping chains outlined in the Indictment. In this tipping chain, Rivas passed inside information to Moodhe, whose daughter Rivas was living with and dating. Moodhe then passed the inside information to SIVA, a broker and financial advisor at a global investment bank headquartered in Manhattan, New York. Moodhe and SIVA had known each other for more than a decade and SIVA also became Moodhe’s broker.
Between 2015 and 2017, Moodhe shared the inside information he received from Rivas with SIVA so that SIVA could execute profitable trades on behalf of his financial advisory clients and himself. By at least early 2016, SIVA understood that the source of the stock tips provided by Moodhe was a corporate insider at an investment bank with whom Moodhe was friends.
In order to keep their scheme from being exposed, including by SIVA’s employer, Moodhe and SIVA developed code phrases to use on the telephone so that Moodhe could surreptitiously provide SIVA with updated inside information. To further hide their scheme, SIVA and Moodhe began going to various diners outside of New York City so that Moodhe could provide stock tips to SIVA in person. During these meetings, Moodhe read from pieces of paper provided to him by Rivas, which contained detailed information about confidential impending deals, including ticker symbols, deal values and expected announcement dates. In order to hide the fact that SIVA was placing trades in his client accounts based on illicit stock tips from Moodhe, SIVA also instructed Moodhe to mark his dirty trades “solicited” in his firm’s online trading platform, so that it would appear that SIVA had directed the trades as opposed to the suggestion coming from Moodhe. On occasion, SIVA also instructed Moodhe to wait to trade on a tip from Rivas until SIVA could first trade in the security on behalf of his financial advisory clients, thereby making it look like SIVA had originated the idea.
In total, between 2015 and 2017, SIVA and Moodhe used Inside Information Rivas provided to trade ahead of the public announcements of more than two dozen transactions, including numerous tender offers, allowing SIVA and Moodhe to generate illicit profits in excess of $3 million. SIVA also earned thousands of dollars in commissions on the illegal trades entered on behalf of his clients.
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SIVA, 56, of Morristown, New Jersey, pled guilty to one count of conspiracy to commit securities fraud and fraud in connection with a tender offer, which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. SIVA will be sentenced on February 11, 2018, before U.S. District Judge Alison J. Nathan.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for their assistance. He added that the investigation is continuing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Andrea M. Griswold and Samson Enzer are in charge of the prosecution.
StarKist Co. Agrees to Plead Guilty for Price FixingRead the Press Release
StarKist Co. has agreed to plead guilty for its role in a conspiracy to fix prices of packaged seafood sold in the United States, the Department of Justice announced today.
According to a one-count felony charge filed today in the U.S. District Court for the Northern District of California in San Francisco, StarKist and its co-conspirators agreed to fix the prices of canned tuna fish from as early as November 2011, through at least as late as December 2013. In addition to pleading guilty, StarKist has agreed to cooperate in the investigation. StarKist faces a criminal fine of up to $100 million. The amount of StarKist’s fine will be determined at a sentencing hearing and the plea agreement is subject to court approval.
“The conspiracy to fix prices on these household staples had direct effects on the pocketbooks of American consumers,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “All Americans have the right to the benefits of free and open competition — the best goods and services at a price free from collusion. We will continue to hold companies and individuals who cheat consumers accountable.”
“Our citizens' confidence in the ability to buy goods within an unbiased market is key to sustaining an efficient and fair economy,” said Special Agent in Charge John F. Bennett, FBI San Francisco. “This investigation stands as a symbol of our commitment to holding corporations and senior leadership accountable and ensuring that activities such as price fixing will not be tolerated.”
A total of six charges have resulted from this federal antitrust investigation into the packaged seafood industry, which is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the packaged seafood industry should contact the Antitrust Division’s San Francisco Office at (415) 934-5300, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at (415) 553-7400.
South Bend Man Sentenced to 60 Months in PrisonRead the Press Release
SOUTH BEND – Jesse Houston, 25 years old, of South Bend, Indiana, was sentenced by U.S. District Court Judge DeGuilio upon his plea of guilty to possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
Houston was sentenced to 60 months in prison followed by 2 years of supervised release
According to documents in the case, in May of 2018 Houston possessed with intent to distribute 2 pounds of marijuana. He also possessed a loaded handgun to further his drug trafficking activity. The marijuana and firearm were found when law enforcement searched his bedroom during the execution of a search warrant.
This case was investigated by the FBI and prosecuted by Assistant United States Attorney Joel Gabrielse.
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Silver Spring Physician Indicted on Federal Charges for Allegedly Obtaining over Half a Million Dollars of Her Deceased Mother’s Retirement BenefitsRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Crystal Mebane McGinty, age 58, of Silver Spring, Maryland, with mail fraud, theft of government property, and aggravated identity theft, in connection with a scheme to obtain over $517,000 of her deceased mother’s social security and City of New York teachers’ retirement benefits. The indictment was returned on July 31, 2018, and unsealed today. McGinty previously had an initial appearance in U.S. District Court in Greenbelt and was released under the supervision of U.S. Pretrial Services.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General, Philadelphia Field Division.
“Criminals who lie, cheat, and steal to obtain benefits to which they are not entitled defraud not only the Social Security Administration, but all law-abiding citizens,” said U.S. Attorney Robert K. Hur. “Federal prosecution of these cases serves to punish the lawbreakers and to deter others who may be tempted to do the same.”
According to the three-count indictment and other court documents, McGinty’s mother was a Maryland resident who began receiving monthly retirement benefits from the Teachers’ Retirement System of the City of New York (TRSCNY) in 1972, and began receiving Social Security Retirement Insurance Benefits (RIB) in 1989. According to her death certificate, McGinty’s mother died of natural causes in 2005, and McGinty, a practicing physician, was listed as the informant on the death certificate.
The indictment alleges that from June 2005 through June 2018, McGinty did not notify TRSCNY or SSA that her mother had died. In addition, the indictment alleges that McGinty deposited her mother’s TRSCNY checks, which were mailed to McGinty’s home, into a bank account that McGinty maintained in her name, her mother’s name, and the name of her mother’s deceased husband. The checks bore her mother’s signature, which McGinty knew was forged. McGinty’s mother’s SSA RIB payments were also deposited into that bank account. Further, McGinty allegedly signed and submitted several proof-of-life forms to TRSCNY, including some in which she identified herself as her deceased mother’s physician, in order to continue to receive her mother’s retirement benefits. McGinty also allegedly called TRSCNY posing as her deceased mother and providing her deceased mother’s identifying information, in an effort to get pension benefits reinstated.
According to the indictment, McGinty routinely withdrew her deceased mother’s TRSCNY and SSA retirement benefits from the bank shortly after they were deposited, by direct debit, cash withdrawals, debit card transactions, checks, and transfers to family members. McGinty allegedly used the funds to pay utility bills, mortgage fees, credit cards, and other expenditures. According to court documents, the expenditures also included fees associated with renewing McGinty’s Health Professional License, tuition at a private high school in Washington, D.C., international and domestic travel, and a cruise vacation.
If convicted, McGinty faces a maximum sentence of 20 years in prison for mail fraud; a maximum of 10 years in prison for theft of government property; and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the SSA Office of Inspector General for its work in the investigation. Mr. Hur thanked Special Assistant U.S. Attorney Michael Davio, who is prosecuting the case.
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Shreveport felon, Lafayette felon plead guilty to possessing firearmsRead the Press Release
SHREVEPORT/ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a Shreveport felon and a Lafayette felon pleaded guilty to possessing firearms in two separate cases.
Shreveport felon pleads guilty to possessing revolver
Roderick Charles Scott, 43, of Shreveport, pleaded guilty October 10, 2018 before U.S. District Judge S. Maurice Hicks Jr. to one count of felon in possession of a firearm. According to the guilty plea, Shreveport police responded to a shooting in the Hollywood area on June 23, 2017. Upon arrival, police observed an individual enter a home on Miles Street. Police ordered the individual out of the home and discovered it was Scott. When approached, he had a Rossi .38 special revolver clenched in his right hand. Police confiscated the gun and arrested Scott.
Scott faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for February 12, 2019. The ATF and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Aaron J. Crawford is prosecuting the case.
Lafayette felon pleads guilty to possessing two firearms
Kenyatta Edmond, 40, of Lafayette, Louisiana, pleaded guilty Tuesday before U.S. District Judge Dee D. Drell to one count of felon in possession of a firearm.
According to the guilty plea, a concerned citizen reported on January 22, 2018 to Lafayette police that a man was unconscious behind the wheel of a car at the intersection of Evangeline Thruway and Mudd Avenue. An officer approached the vehicle and saw Edmond slumped forward appearing to be asleep. The officer saw a pistol in Edmond’s lap with his hand around the grip. The officer then ordered Edmond out of the vehicle and placed him under arrest. Edmond told the officer that he had a second firearm in the vehicle. The officer searched the vehicle and found a Berretta Model PX4 Storm .40-caliber semi-automatic pistol and a Taurus Model Judge .410 gauge revolver. After further investigation, it was discovered that the revolver had been previously reported stolen and that Edmonds has four prior felony convictions.
Edmond faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for February 1, 2019. The ATF and the Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog is prosecuting the case.
These cases were 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.
Roswell Felon Sentenced to Seven Years for Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Shane Mann, 31, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 84 months in prison for violating the federal firearms laws by being a felon in possession of a firearm and ammunition. Mann will be on supervised release for three years after completing his prison sentence.
The Bureau of Alcohol, Tobacco, Firearms and Explosive arrested Mann in Feb. 2018, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition on Aug. 9, 2017, in Chaves County, N.M. According to the complaint, law enforcement officers found multiple firearms and ammunition, and drug paraphernalia in Mann’s residence while executing a state search warrant. Mann was prohibited from possessing firearms or ammunition because of his prior felony convictions for shooting from a motor vehicle, aggravated fleeing a law enforcement officer, and possession of a controlled substance.
On May 15, 2018, Mann pled guilty to a felony information charging him with being a felon in possession of a firearm and ammunition. In entering the guilty plea, Mann admitted that on Aug. 9, 2017, law enforcement officers found firearms and ammunition in his residence, including a loaded handgun that was under a pillow in the bed in which Mann was laying, during the execution of the warrant. Mann acknowledged that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Roswell Police Department and the HIDTA Chaves County Metro Narcotics Task Force. The case was prosecuted by Assistant U.S. Attorney Alfred J. Perez of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Repeat Sex Offender from Sioux Falls Sentenced for Distributing Child Pornography and Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of two counts of distributing child pornography, one count of receiving child pornography, and one count of failing to register as a sex offender was sentenced on October 15, 2018, by U.S. District Judge Karen E. Schreier. The conviction was the result of a federal jury trial in Sioux Falls in July of 2018.
Maksim Stefanyuk, age 27, was sentenced to 262 months (21.8 years) in federal prison on Counts 1 through 3, 120 months in federal prison on Count 4, to be served concurrently, followed by 5 years of supervised release, and a $5,400 special assessment to the Federal Crime Victims Fund.
“The conviction of this repeat offender for these horrible crimes, and the substantial federal prison sentence that he will serve, are a credit to the hard work and dedication of the South Dakota Internet Crimes Against Children Task Force,” said U.S. Attorney Parsons. “The ICAC Task Force is a model of federal, state, and local law enforcement cooperation. We owe them a debt of gratitude for their tireless public service in their collective mission of protecting our children from harm.”
Stefanyuk was indicted by a federal grand jury on May 9, 2017.
Previously, Stefanyuk had pled guilty to possessing child pornography in 2014. After serving his sentence in federal prison, Stefanyuk was released in April of 2016. He registered as a sex offender and reported that he worked near Brandon, South Dakota, but lived in Hills, Minnesota. After officers with the South Dakota Internet Crimes Against Children Task Force downloaded child pornography from Stefanyuk from a location in Sioux Falls, they obtained a search warrant. Not only did they discover child pornography on his computer, but also that he had been living in Sioux Falls without registering as a sex offender. Stefanyuk went to trial and a jury convicted him of all counts.
This case was investigated by the Minnehaha County Sheriff’s Office, the South Dakota Division of Criminal Investigation, and the U.S. Homeland Security Investigations, all of which are part of the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Stefanyuk was immediately turned over to the custody of the U.S. Marshals Service.
Providence Man Sentenced for Bank Fraud, Aggravated ID TheftRead the Press Release
PROVIDENCE, RI – A Providence man who stole the personal banking information of several individuals, including a retired Providence firefighter, and used that information to gain access to their bank accounts, was sentenced on Wednesday to 60 months in federal prison.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Jamal Mansaray, 29, to serve 5 years supervised release upon completion of his term of incarceration and to pay restitution in the amount of $74,300 to Citizens Bank.
Mansaray pleaded guilty on May 30, 2018, to conspiracy to commit bank fraud and aggravated identity theft.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 70 months to 84 months, plus a consecutive term of 24 months incarceration on the charge of aggravated identity theft. The government recommended the Court impose a total sentence of 70 months incarceration.
Mansaray’s sentence is announced by United States Attorney Stephen G. Dambruch, Providence Police Chief Colonel Hugh T. Clements, Jr., Special Agent in Charge of the United States Secret Service Stephen A. Marks, and Special Agent in Charge of the Boston Division of the Federal Bureau of Investigation Harold H. Shaw.
A Providence Police Department investigation determined that in September 2017, an individual attempted to cash a check drawn on a Citizens Bank account belonging to a retired Providence firefighter without his consent. In an effort to confirm that cashing the check was permissible, an employee of the bank called the retired firefighter on a telephone number on file with the bank. The phone call actually rang to Mansaray’s cell phone. After Mansaray failed to properly respond to all of the questions posed by the bank employee, the employee declined to cash the check.
The investigation revealed that the telephone number on file with the bank had been altered and other personal identifying information on file with the bank belonging to the firefighter had been compromised. Further investigation determined that $82,000 was transferred from the retired firefighter’s money market account to his checking account without his knowledge.
Further investigation revealed that Mansaray had accessed funds belonging to at least four other individuals. At the time of his guilty plea, Mansaray admitted to fraudulently obtaining a total of $74,300.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by the Providence Police Department, with the assistance of the United States Secret Service and the Federal Bureau of Investigation.
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Pharmacist Indicted for Taking Drugs, Carrying Firearm in Violation of Court OrderRead the Press Release
PADUCAH, Ky. – A Benton, Kentucky pharmacist was charged by a federal grand jury indictment for stealing medications, announced United States Attorney Russell M. Coleman.
The indictments charge Kyle W. Humphrey, age 34, with stealing pre-retail prescription medications, mislabeling prescription medication in order to defraud or mislead, and wrongful use of health information; the defendant was also a prohibited person in possession of a firearm and has also been charged in a separate indictment with that felony.
According to the indictment, on or about August 9, 2017, while working for a pharmacy in Calloway County, Humphrey concealed pre-retail medical products including: Finasteride, Allopurinol, Eliquis ®, Strattera®, ProAir® HFA, Farxiga®, Cefprozil, Tamiflu®, Duloxetine, Aripiprazole, Ergocalciferol, Levofloxacin, Bystolic®, Xarelto®, Clindamycin Palmitate HCL, Mylan® Norethindrone tablets, Camilia® Norethindrone tablets, Testosterone gel tubes, and Testosterone Cypionate. Between April 9, 2017 and August 9, 2017, Humphrey altered the labeling of allopurinol, a drug held for sale in the pharmacy. He is also charged with obtaining identifiable health information relating to an individual with the intent to use the information for personal gain.
“When prescription drugs are diverted from the legal supply chain, there is no longer any assurance that the products are safe and effective for their intended uses,” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations. “We will continue to pursue and bring to justice those who jeopardize consumers’ trust in their medications.”
Humphrey, was prohibited from carrying firearms as part of a court order issued by Calloway County Family Court on August 17, 2017; on January 2, 2018, Humphrey violated that order and was also charged with being a prohibited person in possession of a firearm.
If convicted, Humphrey faces no more than 20 years for concealment of pre-retail medical products, no more than three years for misbranding drugs, and no more than 10 years for wrongful use of health information. Humphrey also faces no more than 10 years for possessing a firearm while under a Domestic Violence Order.
Assistant United States Attorney Madison Sewell is prosecuting the case. The Food and Drug Administration Office of Criminal Investigations led the investigation with assistance from Calloway County Sherriff’s Department, and the Kentucky Board of Pharmacy. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) also assisted in the investigation.
Pendleton Man Found Guilty of Abusive Sexual Contact on the Umatilla Indian ReservationRead the Press Release
PORTLAND, Ore. – On Wednesday, October 17, 2018, a federal jury in Portland found Shane Britton, 43, of Pendleton, Oregon, guilty of abusive sexual contact.
According to court documents and evidence presented at trial, in June 2016, Britton was staying at a residence shared by the victim and her mother on the Umatilla Indian Reservation. The victim and her mother are both enrolled members of the Confederated Tribes of the Umatilla Indian Reservation. Britton is not a tribal member.
During his stay, Britton subjected the victim to a series of unwanted and progressively more invasive physical encounters. In a recorded interview, Britton initially denied the allegation of abusive sexual contact, but later admitted he inappropriately touched the victim. Britton eventually told law enforcement officers that “in no way shape or form did [the victim] do anything wrong or provoke” his abusive conduct.
Britton faces a maximum sentence of two years in prison, a $250,000 fine and five years’ supervised release. He will be sentenced on Wednesday, January 23, 2019, before U.S. District Judge Michael H. Simon.
The FBI investigated this case in partnership with the Umatilla Tribal Police Department. It was prosecuted by Jennifer Martin and Natalie Wight, Assistant U.S. Attorneys for the District of Oregon.
Orlando Man Pleads Guilty to Theft of MailRead the Press Release
Orlando, Florida – Carlos Dayquan Rodriguez (23, Orlando) today pleaded guilty to theft of mail. He faces a maximum penalty of five years in federal prison. His sentencing is scheduled for January 4, 2019.
According to court documents, on July 1, 2018, officers from the Orlando Police Department responded to reports that an individual, later identified as Rodriguez, was breaking in to the Neighborhood Delivery Collection Box Units (NDCBU) in an apartment complex. The responding officers apprehended Rodriguez as he was attempting to leave the area. At the time of his arrest, the officers found a wire cutter in Rodriguez’s pocket and stolen mail in his vehicle. Surveillance footage showed Rodriguez breaking into the NDCBU and stealing mail from several boxes.
This case was investigated by the Orlando Police Department and the U.S. Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Kara M. Wick.
One Man Pleads Guilty, Another Sentenced, in Methamphetamine-Trafficking ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that EULALIO TORRES-CADENAS, age 41, of Houston, Texas, pleaded guilty yesterday to one count of conspiring to traffic 500 grams or more of a mixture containing methamphetamine in the Eastern District of Louisiana. TORRES-CADENAS faces a mandatory minimum sentence of ten years in prison, a maximum life sentence, a fine of up to $10,000,000 and at least five years of supervised release. U.S. District Judge Susie Morgan set sentencing for TORRES-CADENAS on January 23, 2019.
Also yesterday, Judge Morgan sentenced codefendant PETER GIANDALONE, age 43, of New Orleans, to 48 months imprisonment and 5 years supervised release. GIANDALONE had previously pled guilty to conspiring to traffic 500 grams or more of a mixture containing methamphetamine.
TORRES-CADENAS and GIANDALONE are two of the eleven defendants charged in a 23-count federal indictment. Specifically, the indictment alleges that TORRES-CADENAS and GIANDALONE conspired to sell large quantities of methamphetamine with codefendants Stefen Daigle, Julien Polk, Paul Melancon, Jeffrey Clines, James Hatch, Angel Renee Vidaure, Delio Alfredo Lopez-Lopez, Lindsey Lopez, and Jacob Higginbotham. The indictment also alleges a number of individual acts of distributing and possessing with intent to distribute methamphetamine, as well as firearm offenses for codefendants Hatch, Vidaure, and Lopez-Lopez. Law enforcement developed evidence against this group of defendants using controlled purchases of methamphetamine, traffic stops and seizures, consensually recorded text messages as well as phone calls, search warrants, cooperator information, and self-incriminating statements.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, Louisiana State Police, Jefferson Parish Sheriff’s Office, Texas Department of Public Safety, Texas Highway Patrol, Montgomery County (Texas) Sheriff’s Office, Immigration and Customs Enforcement, AMTRAK Police, and the Orleans Parish District Attorney’s Office. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
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Northeast Ohio Man Sentenced to 5 Years for Buying Gun for Convicted Felon who Killed Westerville Police OfficersRead the Press Release
COLUMBUS, Ohio – Gerald A. Lawson III, 31, of Warrensville Heights, Ohio, was sentenced in U.S. District Court to 60 months in prison for acting as a straw purchaser for Quentin L. Smith, a convicted felon who shot and killed two Westerville Police Officers on February 10, 2018.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the sentence imposed today by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, when Westerville Police Officers Anthony Morelli and Eric Joering responded to a domestic disturbance call on Cross Wind Drive in Westerville on February 10, Smith was armed with a Glock semi-automatic handgun.
As a convicted felon, Smith is prohibited from purchasing or possessing a firearm.
Smith provided Lawson, a longtime friend, money for the firearm and an extra $100 to compensate Lawson – who knew Smith had been convicted of a felony burglary offense and domestic violence – for buying the gun for him.
On May 18, 2017, Lawson purchased the Glock handgun at Stonewall Gun Shop and Pistol Range in Broadview Heights, Ohio. When purchasing the handgun, he lied on an ATF Firearms Transaction Record Form and said he was not acquiring it on behalf of another person.
Lawson pleaded guilty in May 2018 to aiding and abetting the possession of a firearm by a prohibited person.
“As a result of his prior convictions, Smith should never had access to the firearm he used to kill Officers Joering and Morelli,” U.S. Attorney Glassman said. “Lawson knew that Smith had a violent past, including a history of domestic violence, that prohibited Smith from purchasing a firearm, and Lawson chose to arm him with a deadly handgun anyway. To be clear, Lawson did not kill the officers. Smith did. But Lawson is responsible for putting a gun in Smith’s hands, and his sentence today reflects that responsibility.”
U.S. Attorney Glassman added, “More broadly, felons should not have access to guns. Straw purchasing must stop.”
U.S. Attorney Glassman commended the investigation of this case by ATF, and Assistant United States Attorney Noah R. Litton, who is prosecuting the case.
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New Orleans Man Pleads Guilty to Hate Crime in Shooting of Three African-American Men Attempting to Evacuate After Hurricane KatrinaRead the Press Release
Bourgeois shot at three young African-American men fleeing Hurricane Katrina in 2005
Roland J. Bourgeois, Jr., 55, of New Orleans, LA, appeared yesterday before Senior U.S. District Court Judge Mary Ann Vial Lemmon and pleaded guilty to charges that, in the wake of Hurricane Katrina, he shot at three young African-American men because of their race as the men attempted to evacuate New Orleans, announced Acting Assistant Attorney General for the Civil Rights Division John Gore; U.S. Attorney for the Eastern District of Louisiana Peter G. Strasser; and FBI New Orleans Division Special Agent in Charge Eric J. Rommal.
According to documents filed in connection with the plea, shortly after Hurricane Katrina struck New Orleans, Bourgeois and other white male residents of the Algiers Point neighborhood agreed that they would use force to keep out African Americans from their neighborhood. They moved fallen trees to barricade the streets near their homes and started armed patrols of the neighborhood.
On Sept. 1, 2005, three young African-American men – D.H., M.A., and C.C. – walked to Algiers Point in an effort to reach the ferry landing, a site that state and federal agencies were using as an evacuation point. When the three men crossed a barricade constructed by Bourgeois and others, Bourgeois opened fire with a shotgun, wounding all three men. After the men fled, Bourgeois boasted that he had “got one” and pledged to “kill that [racial slur]” if the man had survived. Bourgeois warned one of his neighbors: “Anything coming up this street darker than a brown paper bag is getting shot.”
“This guilty plea demonstrates the Justice Department’s continued commitment over time to holding perpetrators of hate crimes accountable for their actions,” said Acting Assistant Attorney General John Gore. “All Americans have the right to be free from violence or physical harm, regardless of their race.”
“Upholding the civil rights of our citizens is one of the most important duties of the DOJ. This plea demonstrates the resolve of law enforcement to hold individuals responsible for their actions, despite the passage of time,” said U.S. Attorney Strasser. “Hopefully this plea brings some measure of finality to those affected by this crime and to this city that endured so much in the days following Hurricane Katrina.”
“Even though these crimes and Hurricane Katrina occurred over 13 years ago, the FBI does not forget. Today’s guilty plea is proof that the arms of justice are long and we will continue to seek out those who violate and deprive others of their civil rights,” said FBI Special Agent in Charge Eric J. Rommal.
Bourgeois will be sentenced on Jan. 17, 2019. Under the terms of the plea agreement, Bourgeois faces a minimum of five years of imprisonment and a maximum of ten years. Bourgeois was previously charged in a five-count indictment in July 2010.
The FBI conducted the investigation. The case is being prosecuted by Assistant United States Attorney David Howard Sinkman of the Eastern District of Louisiana and Special Litigation Counsel Jared Fishman and Trial Attorney Mary J. Hahn of the Civil Rights Division.
New Orleans Man Pleads Guilty to Hate Crime in Shooting of Three African-American Men Attempting to Evacuate After Hurricane KatrinaRead the Press Release
WASHINGTON –Roland J. Bourgeois, Jr., 55, of New Orleans, LA, appeared yesterday before Senior U.S. District Court Judge Mary Ann Vial Lemmon and pleaded guilty to charges that, in the wake of Hurricane Katrina, he shot at three young African-American men because of their race as the men attempted to evacuate New Orleans, announced Acting Assistant Attorney General for the Civil Rights Division John Gore; U.S. Attorney for the Eastern District of Louisiana Peter G. Strasser; and FBI New Orleans Division Special Agent in Charge Eric J. Rommal.
According to documents filed in connection with the plea, shortly after Hurricane Katrina struck New Orleans, Bourgeois and other white male residents of the Algiers Point neighborhood agreed that they would use force to keep out African Americans from their neighborhood. They moved fallen trees to barricade the streets near their homes and started armed patrols of the neighborhood.
On Sept. 1, 2005, three young African-American men – D.H., M.A., and C.C. – walked to Algiers Point in an effort to reach the ferry landing, a site that state and federal agencies were using as an evacuation point. When the three men crossed a barricade constructed by Bourgeois and others, Bourgeois opened fire with a shotgun, wounding all three men. After the men fled, Bourgeois boasted that he had “got one” and pledged to “kill that [racial slur]” if the man had survived. Bourgeois warned one of his neighbors: “Anything coming up this street darker than a brown paper bag is getting shot.”
“This guilty plea demonstrates the Justice Department’s continued commitment over time to holding perpetrators of hate crimes accountable for their actions,” said Acting Assistant Attorney General John Gore. “All Americans have the right to be free from violence or physical harm, regardless of their race.”
“Upholding the civil rights of our citizens is one of the most important duties of the DOJ. This plea demonstrates the resolve of law enforcement to hold individuals responsible for their actions, despite the passage of time,” said U.S. Attorney Strasser. “Hopefully this plea brings some measure of finality to those affected by this crime and to this city that endured so much in the days following Hurricane Katrina.”
“Even though these crimes and Hurricane Katrina occurred over 13 years ago, the FBI does not forget. This guilty plea is proof that the arms of justice are long and we will continue to seek out those who violate and deprive others of their civil rights,” said FBI Special Agent in Charge Eric J. Rommal.
Bourgeois will be sentenced on Jan. 17, 2019. Under the terms of the plea agreement, Bourgeois faces a minimum of five years of imprisonment and a maximum of ten years. Bourgeois was previously charged in a five-count indictment in July 2010.
The FBI conducted the investigation. The case is being prosecuted by Assistant United States Attorney David Howard Sinkman of the Eastern District of Louisiana and Special Litigation Counsel Jared Fishman and Trial Attorney Mary J. Hahn of the Civil Rights Division.
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New Charges Filed Against Raleigh Investment Adviser Including Conspiracy to Falsify SEC Records & Aggravated Identity TheftRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that a federal grand jury has returned a Superseding Indictment charging STEPHEN CONDON PETERS, 45, of Raleigh, North Carolina, with four additional charges.
The original Indictment, issued in December of 2017, included one count of Investment Advisor Fraud; one count of Fraud in the Sale of Unregistered Securities; nine counts of Wire Fraud; 4 counts of Engaging in Monetary Transactions in Criminally Derived Property; and one count of Corruptly Endeavoring to Influence a Federal Agency.
The Superseding Indictment includes four additional charges, consisting of Aggravated Identity Theft; Conspiracy to Make False Statements and Documents; Making and Using False Statements and Documents; and Falsifying and Concealing Documents During an SEC Examination. The Superseding Indictment also includes additional assets to be forfeited upon conviction.
The Superseding Indictment alleges that beginning in 2009, and continuing into 2017, PETERS orchestrated the sale of VisionQuest Capital LLC promissory notes (the "Capital LLC Notes"), primarily to Visionquest Wealth Management LLC clients. In exchange for an investment of funds, the Capital LLC Notes purported to promise investors an 8% or 9% annual return on principal over a five year term. In connection with the sale of the Capital LLC Notes, PETERS represented and caused to be represented to investors that the Capital LLC Notes were a low risk investment, and that the note proceeds would be invested into revenue generating or income-producing businesses. In fact, PETERS stole large portions of the investor proceeds and carried out a "Ponzi" scheme on investors.
In terms of new charges, the Superseding Indictment contains additional allegations that PETERS, both directly and through his staff at Visionquest Wealth Management, LLC, forged, fabricated, and concealed documents and records in an effort to thwart an examination by the United States Securities and Exchange Commission (SEC) in late 2016. It is alleged that PETERS forged and backdated a letter to his former compliance officer purporting to place the burden of disclosing PETERS’S conflicts of interest upon the compliance officer. PETERS further directed the fabrication of numerous other records given to the SEC examiners, including client balance sheets, wealth management contracts, outside business activity disclosures, and internal compliance memoranda.
At present, no date has been scheduled for PETERS to appear in court concerning the new charges. PETERS is presently set to be arraigned in December 2018 by U.S. District Judge James C. Dever, III.
In addition to the penalties on previously charged offenses, PETERS now faces the following additional penalties: For Aggravated Identity Theft, not less or more than 2 years imprisonment, consecutive to any other sentence imposed; for Falsifying and Concealing Documents During an SEC Examination, not more than 20 years imprisonment; for Conspiracy to Make False Statements and Documents, not more than 5 years imprisonment; for Making False Statements and Documents, not more than 5 years imprisonment. PETERS also faces up to $1 Million in additional fines, as well as further forfeiture of property.
An indictment is an allegation of a crime. The defendant is presumed under the law to be innocent until proven guilty.
The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. Assistant United States Attorney William M. Gilmore represents the United States.
Middlesex County, New Jersey, Tax Preparer Charged with Additional Tax Fraud CountsRead the Press Release
NEWARK, N.J. – A Keasbey, New Jersey, tax preparer who was indicted May 3, 2018, for allegedly using false information to increase his clients’ tax refunds and secretly diverting a portion of those funds into accounts that he controlled was charged today with 11 new tax fraud counts, U.S. Attorney Craig Carpenito announced.
A federal grand jury returned a superseding indictment against David Patterson, 37, adding eight counts of aiding and abetting in the filing of false tax returns and three counts of failure to file tax returns. He was originally charged by indictment with 16 counts of aiding and abetting in the filing of false tax returns. Patterson will be arraigned on the new indictment at a date to be determined.
According to the indictment:
Patterson owned D&D Tax Service LLC, a tax preparation business located in Keasbey. Patterson allegedly prepared multiple fraudulent tax returns on behalf of his clients by falsifying their income, charitable contributions, employee business expenses, and education costs, all so his clients would receive higher refunds than those to which they were actually entitled. Patterson then diverted a portion of the tax refunds to bank accounts he controlled without his clients’ knowledge or consent. He also failed to file an individual tax return and pay federal income taxes for calendar years 2013 through 2015.
The false filing counts each carry a maximum potential penalty of three years in prison and a $250,000 fine. The failure to file counts each carry a maximum potential penalty of up to one year in prison and a $100,000 fine.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, the Department of Justice Tax Division, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit and Trial Attorney Eric Powers of the Department of Justice Tax Division.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: James Friedman Esq., New Brunswick, New Jersey
Mexican national pleads guilty to transporting 9 illegal aliens in Calcasieu ParishRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a Mexican national pleaded guilty last week to transporting nine illegal aliens in Calcasieu Parish.
Felix Manuel Juarez-Peralta, 28, of Mexico, pleaded guilty Friday before U.S. Magistrate Judge Kathleen Kay to one count of illegal alien transportation. According to the guilty plea, law enforcement officers conducted a traffic stop on a vehicle June 7, 2018 traveling west on Interstate 10 in Sulphur, Louisiana. Officers found Juarez-Peralta and nine illegal aliens in a Toyota 4Runner. One of the passengers was an unaccompanied minor. After questioning the defendant, Juarez-Peralta admitted that he knew the passengers were illegal aliens and that he had been paid to transport them.
One of the illegal aliens traveling in the vehicle was charged with illegal re-entry. Jonathan Flores-Hernandez, 22, of Mexico, pleaded guilty on Monday before U.S. District Judge S. Maurice Hicks Jr. to one count of re-entry of a removed alien and was sentenced to time served. He was previously arrested on April 30, 2018 near Rio Grande, Texas, and was deported to Mexico via the Hidalgo, Texas, port of entry on May 3, 2018.
Homeland Security Investigations, U.S. Border Patrol and Calcasieu Combined Anti-Drug Team conducted the investigation. Assistant U.S. Attorney David J. Ayo prosecuted the case.
Medical Director of Substance Abuse Treatment Facility Pleads Guilty to Unlawfully Distributing Opioids, Barbiturates, and BenzodiazepinesRead the Press Release
The Medical Director of a substance abuse treatment center in Wellington, Florida, pled guilty today to unlawfully distributing controlled substances (opioids, barbiturates, and benzodiazepines).
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak-OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.
Kenneth Rivera-Kolb, M.D., 65, of Largo, pled guilty to one count of conspiracy to unlawfully dispense and distribute controlled substances (Case No. 18cr80121). The defendant faces a maximum of 20 years in prison. Sentencing is scheduled for January 8, 2019, at 9:00 a.m. before Senior U.S. District Court Judge James I. Cohn.
According to court documents, in 2013, Rivera-Kolb was hired to serve as the Medical Director of Angel’s House LLC (“Angel’s Recovery”), a substance abuse treatment facility located in Wellington, Florida. Angel’s Recovery was owned and operated by Tovah Lynn Jasperson and her father, Alan Martin Bostom (Case No. 17cr80194). In addition to the treatment facility, Angel’s Recovery also operated sober homes that were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction.
As the medical director, Dr. Rivera-Kolb was purportedly responsible for evaluating patients and prescribing medically necessary treatment and testing. In February 2015, Rivera-Kolb had his medical license suspended by the State of Florida for a period of four years. Despite the absence of a medical license, the defendant continued to serve as the medical director of Angel’s Recovery, and knowingly prescribed controlled substances at the facility. Jasperson and Bostom were aware of Rivera-Kolb’s license suspension, having hired chauffeurs to transport him to hearings before the Board of Medicine of the State of Florida, but continued to employ him as a treating physician and allowed him to write prescriptions for patients. The defendant continued to serve in this capacity until at least September 2015.
Jasperson previously pled guilty to conspiracy to commit health care fraud and was sentenced to 78 months in prison. Bostom previously pled guilty to knowingly and willfully falsifying, concealing, and covering up by a trick, scheme, and device a material fact in a matter involving health care benefit programs and was sentenced to 30 months in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Florida Division of Investigative and Forensic Services, Amtrak-OIG, DOL-EBSA, and NICB. This matter was prosecuted by Assistant United States Attorneys A. Marie Villafaña and Alexandra Chase.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov/ or at http://pacer.flsd.uscourts.gov/.